Financial Management Assessment: Case Study Report
Case Study - Amazon: The Brink of Bankruptcy by LYNDA M. APPLEGATE
Outcomes-
a) Explain the basic principles of financial accounting and management accounting as they apply to a business organisation of their choice.
b) Critically evaluate the role and content of each of the four main financial statements as sources of quantitative data, and their impact on business decision making.
c) Investigate and evaluate the range of issues involved in the development of a funding structure for an organisation.
d) Successfully develop budgets and critically evaluate long-term capital investment proposals performance.
e) Critically analyse financial statements utilising effective strategies and apply accountancy information for informed managerial decision making.
Objectives
Build knowledge on the utilisation of accounting and financial information for decision making purposes;
-To identify and analyse financial risk;
-Develop principles of finance including time value of money;
-Develop the application of accounting and finance theory and principles using quantitative analysis and research.
Instructions:
Students will be given a case study of a small organisation trading on the brink of insolvency, arguing the case as to why it might fail or why it might succeed.
The analysis of the case study must:
-Analyse the financial statements of the business;
-Identify what the key ratios are and apply ratio analysis;
-Argue the case of why the organisation may or may not succeed in the future and what the business should be doing to help it succeed;
-Consider the impact of the political competitive environment on the business;
-Discuss relevant ethical considerations when an organisation becomes insolvent or can it be saved?
-Include external factors which need to be taken into consideration and the likelihood of a merger or acquisition as well as identify what the key ratios are;
-Provide a recommendation, i.e. would you invest in this company after your own analysis or under what circumstances would you buy/save the business.
2500 words.
8 reference.