Finance and CashFlow, homework help

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cncn1991

Business Finance

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Two part Assigment

Part 1: Cash Flow Analysis

Your client, Jennifer Logan, is a relatively inexperienced investor and is trying to make a decision whether to sell her investment in ABC Company or continue to hold her equity position in it. Ms. Logan has asked you to analyze to analyze ABC's cash flow statement and provide a recommendation. Using ABC Company's Statement of Cash Flows, write an analysis and recommendation for Ms. Logan.

  1. Download and read ABC Company statement of cash flows
  2. Write a 3-4 page document for Ms. Logan that includes the following information:

    1. Define and explain balance sheet, income statement, and statement of cash flows.
    2. Describe how the statement of cash flows relates to the income statement and balance sheet.
    3. Explain why the analysis of a statement of cash flows is important to investors.
    4. Analyze and judge the cash flow from operating activities at ABC Company. Is ABC effective at utilizing funds within the company?
    5. Analyze and explain the significance of each item from the investing section of the statement.
    6. Analyze the cash flow from the financing section of the statement and describe why the dividends section is important to your client.
    7. Summarize your analysis and give your opinion on how effective ABC Company is at managing its cash flow, from an investor's perspective. Also explain whether you think ABC Company has enough cash on hand to sustain it in the long term.
    8. Recommend whether Ms. Logan should hold or sell her investment in ABC Company.
  3. Adhere to professional formal and stylistic principles, and be sure to cite sources when necessary.

Part 2: Executive Summary

Write a 2-3 page executive summary of how the Federal Reserve's monetary policies may affect economic growth, both from a corporate and a personal finance perspective. In order to ensure that your response is complete, please be sure to include commentary on the following concepts:

  • The banking industry
  • TVM
  • Personal and corporate saving rates
  • Equity financing vs. debt financing
  • Financial analysis

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Explanation & Answer

please find the attached files. i look forward to working with you again. good bye

Running head: FINANCIAL STATEMENTS

1

Financial Statements
Name
Institution
Course
Tutor
Date

FINANCIAL STATEMENTS

2
Financial statements
Introduction

Business investment is one of the most forms of economic initiatives which are of
paramount impact to the general state of the economy of the country. My client Ms. Jennifer
Logna should be aware that business investment entails acquiring of an asset with intention of
future income generation that would have appreciated (Alexander et al. 2005). She ought to
know that in finance, any form of investment is the actual monetary asset such as house that is
not consumed at the moment; for purposes of being sold at a higher price in future. Some of the
assets that can be invested include but not limited to: real estate property, purchase of bonds and
stocks. For purposes of economic growth, investments can be made within sound and well
informed decisions of the prevailing economic conditions. This essay is addressing some of
common financial statements that Ms. Jennifer Logna ought to know; justified by the fact that
she is inexperienced investor (Alexander et al. 2005).
Balance sheet
This is one of the cardinal financial statements of an organization that makes a summary
of the current assets, liabilities and forms of shareholders’ equity within specific time period. The
balance sheet is very important as it provides concrete information to investors on the current
economic status; being explained by assets and shareholder’s equity (Ross, 1977). The balance
sheet makes complete financial statements in conjunction with income statement and cash flow
statement. Assets=liabilities plus shareholder’s equity. Shareholder’s equity refers to the actual
source of funds used to fund the business. Assets can be both current and non-current assets.
Income Statement

FINANCIAL STATEMENTS

3

This refers to the financial performance of any business firm within a given financial
period of accounting. The ability of financial performance of the business is dictated by how the
firm is able to incur both revenues and all other forms of expenses. An income statement shows
all losses and net profit generated during given period. All investors are supposed to submit their
financial statements to the Securities and Exchange Commission (Ross, 1977). Revenue and
expenses of an income statement is contained in the operation portion...


Anonymous
Really great stuff, couldn't ask for more.

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