Lexon Technologies Inc

Lexon Technologies Inc
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Introduction
Lexon Technologies is a company based in La Miranda, California. It has over 350 product lines which are actively concerned with manufacture of recycled compatible toners, Inkjet cartridges for monochrome, Drum, color printers, Fax, Copier and multifunction devices. The company is concerned with Environmental safety due to current wastes of the products, similar to its products, manufactured by others and therefore it is dedicated to production of environmentally friendly products. It has a capital base of about 12 Million US dollars. The company is still in need of further “investment funding to support current operations improvements, strategic merger s, acquisitions and multiple initiatives” all of which are aimed at expanding its business to a notable scale.
To be able to penetrate well into e-commerce and as a growth strategy, Lexon technologies wish to acquire companies and assets within its industry. One of such acquisition that the organization is looking for is the supplier of empty cartridges. According to its growth strategy “maintaining a supply of empty cartridges is critical” for the success of the organization. Through this acquisition the company is seeking to “insure the highest quality for” its customer “while maximizing higher profit margins. (Anonymous .growth strategy: retrieved from  HYPERLINK "http://stuff.lexontech.com/about/pdf/LEXON_TECH_-_CORPORATE_PROFILE_1-28-10.pd" http://stuff.lexontech.com/about/pdf/LEXON_TECH_-_CORPORATE_PROFILE_1-28-10.pd accessed on 19th October, 2010.). This acquisition requires funding.
To acquire funding of this new acquisition the company will have to come up with a balance sheet of its spending and a cash flow in order to convince the funding agency of the repayment of the funds. Several problems underlie this process of funding especially in making cash flow statement. examples of problems that may be encountered in are: Adjustments of organization’s machine and structures depreciation, un expected changes in working capital , determination of net losses and gains, probable changes in Stock options to suit customer demands, planning for postretirement benefit costs for the employees, extraordinary items and significant noncash transactions aimed and at improving the operations of the organizations. These problems will be a barrier to determination of the two categories of Cash flow i.e., cash inflow and cash outflow together with their proper projections after the acquisition of new investment. It would take time to reach at an agreement with all organization committee on certain issues on financial especially those concerning post retirement benefits.
Proper cash flows, which include clear record of how the investors’ money will be used, are important for the organization to receive funding. According to Tim Berry, fi...