+1-415-670-9189
info@expertsmind.com
Conduct a what-if analysis
Course:- Financial Management
Reference No.:- EM13232




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

The Final Project for this module is a consultancy report to Anthony's Orchard, an expanding apple orchard and distributor. The company has been entertaining the idea of expanding its product line to include apple juice. In order to do this, a major investment in an apple press is needed. The aim of your consultancy report is to analyse all relevant data and make a recommendation to the management of the company in regard to this idea. Each of the remaining Individual Assignments in this module will focus on one component of this consultancy report; in Unit 6 you will compile these, complete your analysis and submit the Final Project.

Measuring and regularly monitoring the financial health of a company, using budgeting and control methods, is a vital concern for managers. By acquiring and analysing timely and accurate financial data, decision-makers will have the tools to facilitate operational and strategic decisions. These decisions may concern reactions to business or environmental conditions, resource acquisition, expansion and more.

This Individual Assignment will provide the opportunity to analyse financial data for Anthony's Orchard. As you heard from company CEO Bob Frost in this unit's media piece, Anthony's Orchard would like to make aggressive plans for its future, including the expanded product offering described above. At the same time, unforeseen circumstances can impact the current health of the company as well as its future plans. What-if analyses are valuable aids in assessing a variety of planned and unplanned events. You will utilise the analysis you conduct here as part of the Final Project.

To prepare for this Individual Assignment:

1. Review the readings and media for this unit, including the Anthony's Orchard case study media.

2. Familiarise yourself with the Anthony's Orchard company and its current situation; this can be done by exploring each of the tabs across the top of the screen in the Anthony's Orchard case study media. Hint: You should focus on the financial information.

To complete this Individual Assignment:

1. Review the Financial Statements: Analyse the current financial state of Anthony's Orchard and evaluate the impact of a major customer cancelling their expected order. This analysis should include the following:

o    Your view of the current financial health of the company

o    Your assessment of the materials and labor costs

o    Your assessment of the income statement

o    Your assessment of the cash flow statement

o    Your assessment of each of the business units in Anthony's Orchard

o    C-V-P analysis of the current year's financials

2. Conduct a What-If Analysis: This what-if analysis concerns an unforeseen circumstance that could impact the company's current health as well as its future plans. A major customer is considering cancelling their order for prepared apple products. This customer accounts for 25% of the prepared apple product revenue. Evaluate the impact of this on the budgeted statements contained in the case study.

Answered:-

Verified Expert


Preview Container content

Financial Analysis

In case you get money from a bank, you have to rundown the estimation of all your gigantic assets, and what's more all your foremost liabilities. Your bank uses this information to overview the nature of your fiscal position; it looks at the way of the advantages, for instance, your auto and your home, and detects a dynamic valuation upon them.

The bank furthermore ensures that all liabilities, for instance, home advance and charge card commitment, are truly uncovered and totally regarded (Bragg, S, 2000). The total estimation of all advantages less the total estimation of all liabilities gives your aggregate resources, or worth.


Evaluating the cash related position of a recorded association is really similar, except for money related experts need to make a substitute walk and consider fiscal position in association with business sector regard. We ought to inspect.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
A stock current dividend is $1.00 and its expected dividend is $1.10 next year. If the investor required rate of return is 15% and the stock is currently trading at $20.00. Wh
With the increasing use of ACH and EFT (and Bank Wires), has the game changed for how companies can manage their cash. Who can tell me what ACH and EFT are and how they are be
Harry is 16 years away from retiring and starts saving $200 a month in an account paying 2% compounded semi annually. When he retires, he wishes to withdraw a fixed amount eac
When computing the weighted average cost of capital, which of these are adjusted for taxes? a. cost of debt b. both the cost of equity and the cost of preferred stock c. cost
Suppose the market yield on mortgages is 9.0% in bond equivalent terms (BEY, or "coupon equivalent", CEY). For the situation described in the problem above (i.e., where the BE
How can the strategic profit model be integrated with cost/revenue analysis for the purpose of analyzing the return on assets from servicing a specific customer account?
Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 5.30 %. This debt currently has a
The Clark Group pays an annual dividend of $5.80 per share. The economy is tough but Clark promises to continue maintaining this level of dividend every year for the time bein