YL091203AU2-3FiscalanalysisofAmericanSub-company美美.docVIP

Fiscal analysis of American Sub-company Synopsis The company, Royal House Garment and Co., Ltd, (RHGCL) has been now regarded as a successful and profitable company. The CEO, Eon Chen, is thinking about investing $500,000 to build its own distribution subsidiary in America. But he was faced with boycott from some conservative directors when he presented the project to the board of directors. Those conservative directors preferred to invest in a five-year national bond newly published by the government at a return of 6% per year or a fund would produce $120,000 in 5 years. It was his duty to make an appraisal for the new project to justify the new risk to persuade these directors. Nevertheless, based on an investment of $500,000, a forecast of $1,500,000 annual sales for the 1st year, an estimated return of five years at $90,000, $150,000, $200,000, $300,000 and $400,000 respectively, the new project raised by the CEO will be anticipated. The policy of Royal House Garment and Co., Ltd, Nowadays, market specialization and division is taking shape in the world processing. About 70 percent of the commodities is decided by the agents of re-exports to the target market while China exports to the world. With the development of market economy, Chinese enterprises have already started to build its own sales network in various ways to enter American mainstream sales channel. Therefore, on the foundation of the footwear industry, China should keep the original middle market share by not only improving product quality, skill levels and grades but also gradually expanding middle market share. (1) Goods to distinct Consequently, to satisfy the different needs of the consumers, Royal House Garment and Co., Ltd, plans to do everything possible to produce diverse shoe styles. (2) To strengthen the present standing Royal House Garment and Co., Ltd, in the United States aims to keep its market share, go on to strengthen our poor market, and make sure that this part of the