ACC 504 Lecture Notes - Credit Risk, Signing Bonus, Cash Flow
9 Feb 2013
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Re: effect on cash flow from following issues: revenue recognition, accounting for securities, treatment of research vs. development costs, investments, bank covenants, tax asset, disclosure issues, expensing-. My role is to be a financial consultant to the union leaders of haddock. They are interested in knowing the true cash flow of company in the short and long term to assess whether or not the company is capable of meeting their demands. The users of the analysis are not sophisticated users and must be presented with simple explanations and relevant information to avoid confusion and to ensure proper use of recommendation. The company is a privately owned company operating since 1966. Discuss all related industry facts that will contribute to the case. Owners: will want to maintain internal control and minimize taxes while maximizing profits. Also, along with profit maximization cash flow prediction is important to make the business more attractive to creditors for lending money.
