FIN 419 Week 4

Individual Assignment 1: Assignments from the Readings

Resource: Principles of Managerial Finance

Prepare responses to the following problems from the text:

Ch. 14: P149, P1416

Ch. 15: P159

Individual Assignment 2: Scott Equipment Organization Paper

Resource: Financial Outcomes Paper

Write a 1,400- to 2,100-word paper in which you review your organizations most recent financial reports, such as balance sheets, statements of cash flow, management comments, and footnotes to financial statements, to explain how each current asset and liability account has affected cash management strategies. Complete the following in your paper:

Assume next years forecasted revenues increase by 20%.

Provide a detailed working capital recommendation to senior management based on next years increase in revenue along with assumptions you make regarding other line items in the pro forma financial statements.

Discuss the effect of this revenue increase on the firms working capital policy.

Identify lessons learned and discuss areas for further development in your conclusion.

Format your paper consistent with APA guidelines.

Create a 5- to 8-slide Microsoft PowerPoint presentation for the organizations senior management with an executive summary of your Working Capital Strategies paper.

Discussion Questions

What is investment banking? How would the investment banker assist an organization in going public? As a CFO, what information would you need to select an investment banker?

What is the difference between operating and financial leverage? What is the importance of assessing operating vs. financial leverage?

What are the risks of having an excessive amount of financial leverage in an organization? What is the degree of total leverage?

What is EBIT-EPS analysis? What is the indifference curve? How is risk factored into the EBIT-EPS analysis? What are the basic short comings of EBITs analyses?