Doug’s Company Response, Essay Example

Doug’s company produced a debt ratio close to 0.80 after the summer and the profit was only near $800 which for the entire period of the business that is not much of a profit. Doug did not start with much capital and was able to repay his loan. The problems that seemed to arise with Doug’s business were that he had to pay out salaries and he had high investments with machinery and other necessary tools to run the business. He might want to do some of the work himself or make smaller investment in tools. He might consider purchasing the tools to profit in the business within the next year. This is a long-term business investment not a short-term investment for one summer because the capital needed to succeed in the business such as machinery is very costly.