Explain the impact of working capital management on the business’s operations. Provide examples to support your claims.
C. Financing: Explain how a business finances its operations and expansion.
D. Short-Term Financing: Explain how potential short-term financing sources could help the business raise funds for improving its financial health. Base your response on the business’s current financial information.
E. Bond Investment: Discuss the risks and benefits of the business investing in a corporate bond. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis. Use the Project Two Financial Assumptions document and the Bonds section of the Net Present Value (NPV) worksheet in the Project Two Financial Formulas workbook.
F. Capital Equipment: Discuss the risks and benefits of the business investing in capital equipment. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis. Use the Project Two Financial Assumptions document and the Equipment section of the Net Present Value (NPV) worksheet in the Project Two Financial Formulas workbook.
G. Building: Discuss the risks and benefits of the business investing in a building. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis. Use the Project Two Financial Assumptions document and the Building section of the NPV worksheet in the Project Two Financial Formulas workbook.
2. Financial Evaluation: In this section of the report, you will determine which of the three available investments are good financing options and describe the business’s likely future financial performance.
A. Bond Investment: Determine if the bond investment is a good financing option for the business’s financial health. Use your financial analysis and other financial information to support your claims.
B. Capital Equipment: Determine if the capital equipment investment is a good financing option for the business’s financial health. Use your financial analysis and other financial information to support your claims.
C. Building: Determine if the building investment is a good financing option for the business’s financial health. Use your financial analysis and other financial information to support your claims.
D. Future Financial Considerations: Describe the business’s likely future financial performance. Base your description on the business’s current financial well-being and risk levels. Use financial information to support your claims.
What to Submit
To complete this project, you must submit the following:
Financial Analysis Report
Submit your completed Project Two Financial Analysis Report.
You must also submit the Excel files for your chosen business’s balance sheet, income statement, and cash flow statement from Mergent Online.
Workbook: Project Two Financial Formulas
Use this Excel workbook to complete your calculations for the project. You should have already completed the Ratios worksheets for your Project Two Milestone assignment.(THIS PART IS ALREADY DONE)
All sources should be cited according to APA style. This includes sources listed in your Project Two Financial Formulas workbook. Consult the Shapiro Library APA Style Guide for more information on citations.
