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ABC Company Financial Analysis

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Companies are subject to risks and financial concerns which is why it is highly critical to review the possibilities of any economic concerns. The primary objective will be to assist ABC Company with continual growth as well as finding alternative ways to leverage additional products. Furthermore, the company has already stumbled on a new opportunity to build cedar dollhouses with the extra material left from their roofing jobs. In an effort in making a wise investment, the company has hired me as the controller of their company to assist in this decision. Additionally, this research paper will discuss the company’s risk profile; analyze the cash flow, review product cost as well as any potential investments to boost profit. The research will also allow me to elaborate on the significant risk factors and be able to determine if an investment is deemed profitable. Moreover, I will give my final recommendation based on my full risk review as to the decisions of further investments and if the additional opportunity is a smart decision.

ABC Company’s risk profile is …show more content…

Cash received is from the sale of goods or money paid out for any merchandise. Additionally, perhaps ABC Company should also consider expanding on cash flow by investing in common stock. When a company can exchange shares, it can become profitable and improve the cash flow. Based on the cash flow statement it appears that the company would have to re-evaluate the project since it cannot be funded with existing cash flow. If the company wishes to move forward after the review, then they would have to obtain additional funding and finance part of the project. This funding will also help pay for the extra wages and other raw material not provided by the leftover roofing material. On the other hand, a product cost can show a different

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