Assessment InstructionsOverviewIn this assessment, you will complete an employment application questionnaire in which you analyze a personal management experience. The scenario presented here will be applicable to future assessments.PreparationReview the Atha Application Questionnaire [DOCX]. Use it and the scenario below to complete this assessment.ScenarioImagine that after exploring online job postings, you submitted an application and resume to Atha Corp for a management position. Atha markets its product—unique lighting products (wall, pendant, floor, table, and nightlights)—through a series of regional distributors and directly online. A short time later you received the following e-mail.Atha Corporation HR E-mailDear Applicant,Thank you for your interest in employment at Atha. We have received your application packet. The next step for candidates is to provide a narrative response to the questions in the attached document. Please return your completed document to me.Once we receive your responses, we will review them and notify you of the next steps.Good luck! Sincerely,Thomas HardyHuman Resources RecruiterAtha CorporationInstructionsRespond to the scenario by completing the Atha Application Questionnaire [DOCX].Additional RequirementsYour assessment should also meet the following requirements:Format: Use the Atha Application Questionnaire document to complete this assessment.Length: 3–4 pages, double-space lines.Written communication:Express your main points, arguments, and conclusions coherently.Use correct grammar and mechanics.Proofread your writing.Competencies MeasuredBy successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment scoring guide criteria:Competency 1: Analyze characteristics and behaviors of effective managers.Analyze one's own approach to management of a specified project or event.Justify why chosen management characteristics are appropriate for a specified situation.Competency 3: Communicate effectively and professionally.Convey clear meaning in active voice, with minimal issues in grammar, usage, word choice, spelling, or mechanical errors.Describe an instance where one was required to manage a group, team, or project.Assessment ResourcesThe following is required to complete the assessment.Atha Application Questionnaire [DOCX].Introduction to the Fundamentals of ManagementThe following resources focus on the fundamental principles of management and their relationship to the modern workplace environment and important issues that are frequently encountered by managers.Robbins, S. P., Coulter, M., & DeCenzo, D. A. (2020). Fundamentals of management: Management myth debunked! (11th ed.). Boston, MA: Pearson. Available in the courseroom via the VitalSource Bookshelf link.Chapter 1, "Managers and Management in Today’s Workplace." Chapter 2, "The Management Environment." CRITERIAPROFICIENTDISTINGUISHEDAnalyze one's own approach to management of a specified project or event.Analyzes one's own approach to management of a specified project or event with superior insight and detail that demonstrates a good appraisal of management principles.Justify why chosen management characteristics are appropriate for a specified situation.Provides strong justification of why chosen management characteristics are appropriate for a specified situation with support of specific examples of why the characteristics are sound choices.Convey clear meaning in active voice, with minimal issues in grammar, usage, word choice, spelling, or mechanical errors.Conveys clear purpose, in a tone and style well-suited to the intended audience. Supports assertions, arguments, and conclusions with relevant, credible, and convincing evidence. Exhibits strict and nearly flawless adherence to organizational, professional, and scholarly writing standards, including APA style and formatting.Describe an instance where one was required to manage a group, team, or project.Describes an instance where one was required to manage a group, team, or project in sufficient detail to support a subsequent analysis of actions taken.

SHORT-TERM FINANCING AND OPTIONS CONTRACT Gregg, the CFO and the board of directors of Baldwin Inc. have taken enough time to discuss capital budgeting, dividend policy, and capital structure and now want to focus their attention on short-term finance and cash planning of the company. The board is considering the ways to improve the working capital management of the company. They are also discussing various sources of short-term financing and the minimum amount of money to borrow in the short-term to finance inventory and accounts receivable associated with sales growth. Gregg opened the meeting with the statement that the company must investigate its cash cycle and find ways to improve it because he has noticed a deterioration in the cash flow management of the firm. Gregg was worried that the inventory period of the company has increased from 70 days in the previous year to 80 days in the current year and the accounts receivable period has also increased from 47 days in the previous year to 55 days in the current year whilst the accounts payable period remains the same at 52 days. He explained that if the two components of cash cycle i.e. operating cycle and accounts payable period are not improved, the company might need to borrow $5.5 million short-term next year to fill the gap between short-term cash inflows and cash outflows. Gregg presented to the board the following ratios to show how the company has performed over the past two years: Exhibit 1: Asset Utilization Ratios of Baldwin Inc. Asset Utilization Ratios 2018 2019 Inventory turnover 5.14 times 4.5 times Inventory period 70 days 80 days Accounts Receivable period 47 days 55 days Accounts Payable period 52 days 52 days Operating cycle 117 days ? Cash cycle 65 days ? The Credit manager of the company, Josh Waters explained that the company can change some aspects of its short-term financial policy and find alternative financing policies to fund current assets to improve its working capital management. Another board member, Jacky Jackson was of the view that cash budget is a primary tool of short-term financial planning that can be used to improve the cash management of Baldwin Inc. She believed that having short-to-medium term cash budget for the next five years can help the company identify its short-term financial needs or opportunities and the required amount needed to borrow for the next five years. In that way the company will be able to arrange for short-term finance in advance to reduce the risk of cash shortages. With the expected improvement in current asset management of the company, some investors believe that the company’s stock price will increase. One investor, Desmond Clinton is of the opinion that buying a call option on the stock will give him the right to purchase more of the stock of the company now at a fixed price before the price of the stock jumps up. The stock price of Baldwin is currently $25. The exercise price is $30 per share. The call option and put option on the company’s stock expires in one year. The board is determined to improve the company’s short-term financial management policies and wants you to assist them achieve that objective. 1. Using the ratios presented by Gregg, the board chairman wants you to calculate the following and explain what they mean to all the board members: i). Operating cycle of the company for 2019 ii). Cash cycle of the company for 2019 2. Given the asset utilization ratios, do you think the cash management of Baldwin Inc. has improved or worsened over the past year and why? Suggest two ways to improve the cash cycle of the company 3. The board is concerned that the net working capital might be declining and not meet the $500,000 minimum requirement of the company. The company has a cash balance of $300,000, other current assets of $1.5 million and current liabilities of $1.3 million. Should the board worry about the company’s net working capital? 4. The board wants to adopt a restrictive short-term financial policy to improve on its cash management. Identify three aspects of restrictive short-term financial policy the company should consider. 5. The cash budget shows that the company will need $2 million to finance its working capital needs in next three years. List five sources of short-term financing the company can use to raise the money. 6. Mention to the board three activities that can increase cash of the company and two activities that can decrease cash of the company. 7. Explain to Desmond Clinton the difference between a call option and a put option.