Apollo Shoes Planning Essay

1923 Words Feb 20th, 2011 8 Pages

Prepared K.E;M.B.(1/13/2012)

Apollo Shoes, Inc.

Relevant Matters Based on Minutes (December 31, 2011)

Information Relevant to 2010 Audit

1. Remarks by Apollo Shoes Inc. CEO Larry Lancaster in regards to the 10% projected increase in sales for the 2011fiscal year. (“Well they better increase by that much or heads will roll.”) GA-3.1 2. Majority vote by members of the board to internalize product production GA-3.1 3. $90,000 stipend awarded to outside Board Members GA-3.1 4. Refinancing of short-term credit GA-3.1 5. $ 50,000 in damages due to April snowstorm GA-3.2 6. Discontinuation of Research and
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Lancaster welcomed the new or reelected board members: Josephine C. Mandeville, Professor of Accountancy and Typing at the Graduate School of Business and Clerical Skills; Ivan W. Gorr, President and CEO of Far More Drugs; Harry R. Baker, Executive Vice President and Treasurer of the Iguana Growers of America Inc., Theodore Horstmann, Minister of Commerce of Anglonesia; and Fritz Brenner, President of The Widget Corporation

Mr. Unum presented the forecast for the year, attached. Sales are expected to increase 10 percent, with costs of goods sold and general expenses bearing about the same relationships as experienced last year. Mr. Lancaster stated, “Well, they better increase by that much, or heads will roll!” Mr. Lancaster’s plan to move production to within the company was discussed. Over Mr. Horstmann’s vehement disagreement, the board authorized purchase of equipment totaling $1.3 million to facilitate internal production of Apollo products by a vote of 6-1.

Mr. Unum reported that the Company’s short-term line of credit was refinanced as of February 2, 2011 and rolled into a note payable with the Twenty-First National Bank of Maine, due January 1, 2012.

Mr. Brenner moved a declaration of dividends for the year ended the previous December 31. The motion died for lack of a second.

Mr. Unum moved, and Mr. Lancaster seconded, officers’ salary increases of 10 percent for 2011 as well
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