Titi: Balance Sheet and Internal Control Essay

Submitted By schoenrock1
Words: 1388
Pages: 6

Digiekon, Inc.

2012 Annual Report
Year Ended April 11, 2013

At a Glance

Digiekon has been a leader in advanced photographic equipment since the company was first established in 2000. The company manufactures and sells digital cameras to high volume chain stores and low volume camera shops. Manufacturing is done at our facilities in Taiwan, and sales divisions exist in four regions: North America, Europe-Africa, Asia-Pacific, and Latin America.
In fiscal year 2012, Digiekon regained profitability and posted a healthy increase in net income. This was due to placing tighter controls on production levels and sales expenditures, and improved analysis of the camera market.
Digiekon will continue its strategy of low cost/high value for low-end cameras, and fair market price/high quality high-end cameras.

Mission Statement

Digiekon’s mission is to provide quality digital cameras at an affordable price to capture all of life’s precious moments.

Vision Statement

Digiekon’s vision is to be the leader in providing a wide range of state-of-the-art digital camera technology that is affordable and easy to use.

To Our Shareholders and Investors

In fiscal year ended April 11, 2013, Digiekon achieved a 62% increase in net income compared with the previous year and a return to profitability. In addition, Digiekon achieved increases in market share for all regions. Tighter controls on spending for payroll and sales expenditures contributed to the profitability. However, some regions still pose a challenge in the low-cost entry-level product line. Digiekon is working towards improved use of break-even analysis and analysis of competitors in order to improve future profitability of the company.

Chad Schoenrock Thomas Butler
CEO, Member of the Board CFO, member of the Board
Executive Management Team and Board of Directors

Officers

Chad Shoenrock
President and CEO

Thomas Butler
Executive Vice President and CFO

Board of Directors

Jeannine Scherenberg
Chairman of the Board

Barb Denney
Director, member of the Board

Gary Lubbert
Director, member of the Board

Ron Scott
Director, member of the Board

Long-term Strategic Plan

Digiekon will increase expenditures in customer support in the Europe-Africa and Asia-Pacific market in an attempt to increase market share. Two models will be introduced. The company will introduce a lower-cost entry level moderate quality camera to appeal to a wider number of budget customers. The company will introduce a premium priced model camera with the most advanced features in order to capture the high-end market share.

Long-term Objectives

Digiekon will increase overall net income by 15% a year. The company will work towards increased sales of 10% in the Europe-Africa market, and increased sales of 20% in the Asia-pacific market. The company will strive for 5% gains in North America and Latin America.

Corporate Social Responsibility and Citizenship

In fiscal year ended April 11, 2013, Digiekon continued its commitment towards worker safety and moral by enhancing the cafeteria and continued expenditures on safety. Unfortunately, due to the previous decline in revenue the company has had to suspend investment in energy efficiency and green initiatives. The company fully intends to restart those commitments in the future.
The company continues its policy of not making charitable contributions. The company has a policy of returning all profits to the shareholders. This allows individual decisions by investors as to how to spend their profits.
Continuing this year is a policy of enforcing a supplier code of conduct. We believe this is a valued addition to the company’s good will assets.

The Future of Digiekon
We have recoginized the need to adapt to changing market

Financial Section

Business environment
Yada yada yada…
Financial performance
Yada yada yada…
Income (Loss)…