Reference no: EM131489268
Assignment: Cash Flow
This is a two-part assignment. To complete this assignment, do the following:
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's 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.
Attachment:- ABC Companys Statement of Cash Flows.rar
|
Explain the significance of fixed costs
: Explain the significance of fixed costs, overhead, variable costs, total cost, marginal cost, e-commerce, break-even point, total revenue, marginal revenue.
|
|
Provide your recommendations of the stock
: Provide your recommendations of this stock as an investment opportunity. Support your rationale with resources, such as peer-reviewed articles.
|
|
Pay off the loan in three equal annual payments
: You borrow $5,900 at 10% per year and will pay off the loan in three equal annual payments starting 1 year after the loan is made.
|
|
What will happen to fixed costs
: Inferring If the total output of a business increases, what will happen to fixed costs? To variable costs?
|
|
Define and explain balance sheet and statement of cash flows
: Define and explain balance sheet, income statement, and statement of cash flows. Describe how the statement of cash flows relates to the income statement?
|
|
Explain the significance of supply
: Explain the significance of supply, Law of Supply, supply schedule, supply curve, market supply curve, quantity supplied, change in quantity supplied.
|
|
Explanations of the respective outcomes reached by the court
: Explanations of the respective outcomes reached by the courts in the following cases which all involving sales of land: Crow v FC of T 88 ATC 4620
|
|
User and account management and training
: In your role as information security consultant, create a strategy for an effective user training, access, and account management program.
|
|
How did such a rapid change happen
: China's Thirst for Gas: Hurricanes in the Gulf of Mexico, deteriorating pipelines in Alaska, and conflict in Iraq can cause gasoline prices to rise.
|