Problem:
Huffman trucking is a freight company with over 800 tractors and 2100 trailers. Over 1400 employees operate these machines. The company made over $ 6 million in the 2004 financial year. It is proper to understand these facts to attain out goals for the financial progression for the year 2007 and 2008. The company has shown constant growth over the years. As a sole proprietorship, the company does not have any unmet liable tax obligation as per the income statement coupled with their balance sheets.
The trucking company's current assets for the company as per the year 2006 are $2,277,880. This shows an average growth of $70,000 per annum. Projections then shown that the figure is expected to rise to 2,350,182 in 2007 and 2,420,400 in the year 2008. Huffman's current liabilities stand at $ 888,270 with an average growth of $ 50,000 per annum. These growths alternate yearly with $ 10,000 and $ 100,000 alternations. The last progression seen was at a $ 100,000 increase, so it, therefore, stands that the next projection for the year 2007 will be $ 898,270, and the year 2008 will stand at $ 995,870.
The trucking company's long-term liabilities amount $ 71,193. The liabilities have and a constant growth of $ 30,000 per annum. It will, therefore, experience a growth to $ 742,930, in the year 2007 and in 2008 grow to 773,930. The stakeholders' equity has grown at an average of $ 70,000 per annum. It currently stands at $ 2,277,880. The expected projection will raise the figure to 2,351,380 in the year 2007 and $ 2.422.380 in 2008. The company has seen steady growth over the years, thus, maintaining its privately owned tag. There are vital aspects that affect the growth and progression of the company. The key aspects are economic, legal and governmental influences. The economic aspects include inflation, which in turn affects labor, and fuel costs. These are the pillars of the business; hence, the inflation will affect profits directly. The govern aspects bring in the federal laws and taxation the government imposes on the business. The law could be altered anytime affecting the profits. The legal aspects include the federal laws and the union laws.