Assignment:
For this project, you will take a set of financial reports from a fictional or real company and try to determine what would happen if something changed within the company. You will identify something you want to change, and then try to determine the impact of that change.
For example, suppose you want to grow the company's sales by extending credit to more customers. How will this impact sales, accounts receivable, cash flow, expenses (especially bad debt), etc.? Once you determine that, how will it ultimately impact the Balance Sheet, Income Statement, and Statement of Cash Flows? How will it impact your key ratios? What non-accounting information (such as training staff in new processes) might be impacted?
Some other examples could be: what happens if you reduce payroll (a very common thing these days), or reduce inventory (to move to more of a real-time inventory system), or make a significant capital purchase? What would be impacted?
Create a 2 to 3 page paper in which you:
Identify something you want to change in the company and identify and explain the impact of the change.
Identify a financial report related to your proposed change and explain how your use of this report will influence your decision-making.
Identify how information or processes not directly related to accounting will be impacted by the proposed change.