BluJay Aviation Business Report

In Module 9, you will submit a business letter/report to BluJay Aviation, Inc. In this activity, you will be a business consultant to BluJay Aviation, Inc., the fictional company used in the first half of the course. Ongoing throughout the second half of the course, you will be hired by BluJay to advise them on some current operating activity issues and potential investing activities for growth opportunities. Your letter/report will outline your analyses and recommendations. This activity will apply concepts and techniques learned in the course.

During each module, for the remaining of the course, it will be useful to continue to draft what you are going to put in the final letter/report to BluJay that is due in Module 9. You will find it very helpful to have a working draft as you progress through the course. Reminders will be provided along the way. Remember, the best writing is done, edited, and redone. There will be one episode for Modules 5, 6, 8, and 9 (BluJay Aviation Episodes 6-9).

Your final Letter/Report is due in Module 9

The letter/report should be submitted to BluJay Aviation, Inc. from your consulting business. Be sure to include a bill for your services; make it appropriate for the amount of work. The letter/report should be approximately 2-4 pages, again editing and rewriting normally improves work. The format should be a typical business letter/report style.

Remember, as a business consultant you need to make recommendations for each episode and back up your recommendations with data. You may also make any reasonable assumptions that may be needed.

6.3 - Individual Activity: Episode 8

BluJay Aviation has called on your business consulting company again for some advice. Brad has decided that they should extend the life of the aircraft from an original estimate of 15 years to 20 or 25 years. Three years have already been taken on the aircraft. He believes this will allow them to show a larger profit.

Directions

Make a recommendation to BluJay. What are the pros and cons of this alternative? In your recommendation to BluJay, be sure to state the implications of your decision on all the financial statements, not just the income statement.

Draw up a rough draft of what you are going to put in the final letter/report to BluJay for Episode 8.

Your business consulting company has received a second request for advice from BluJay Aviation, Inc.

BluJay Aviation has allowed their clients to pay 30-60 days after services have been given. This too often causes their cash flow from operating activities to be negative, even though they are earning a profit. The economy has also made them nervous about collecting since a few businesses that use their services, especially the realtors, may not stay in business.

Directions

Choose two options they might try to improve their cash flow and advise them about the valuation of their accounts receivable. Create a rough draft of what you are going to put in the final letter/report to BluJay for Episode 8 due in Module 9.

9.3 - Individual Activity: Episode 9

Another growth opportunity has arisen for BluJay Aviation and the company has asked for your business consulting company's advice.

A company giving scenic rides over the city in a helicopter has decided to close their business. The helicopter is for sale. Financing of this purchase would be either by borrowing or by obtaining new investors.

Directions

Your final letter/report from your consulting company to BluJay is due by the end of this module. It should include your advice on financing the helicopter. What are the advantages and disadvantages of each form of financing expansion? Be sure to determine the effect on the financial statements and various ratios. Recommend whether BluJay should expand, and if so, how the helicopter should be purchased.