Ratio Analysis and Recommendation, business and finance homework help
For this part of the course project, you will demonstrate yourability to evaluate the strengths and weaknesses of a company throughfinancial analysis.This is a two-part assignment. To complete this assignment, do the following:Part 1: Cash Flow AnalysisYour client, Jennifer Logan, is a relatively inexperienced investorand is trying to make a decision whether to sell her investment in ABCCompany or continue to hold her equity position in it. Ms. Logan hasasked you to analyze to analyze ABC's cash flow statement and provide arecommendation. Using ABC Company's Statement of Cash Flows, write ananalysis and recommendation for Ms. Logan.Download and read ABC Company's Statement of Cash Flows.Write a 3-4 page document for Ms. Logan that includes the following information:Define and explain balance sheet, income statement, and statement of cash flows.Describe how the statement of cash flows relates to the income statement and balance sheet. Explain why the analysis of a statement of cash flows is important to investors.Analyze and judge the cash flow from operating activities atABC Company. Is ABC effective at utilizing funds within the company?Analyze and explain the significance of each item from the investing section of the statement.Analyze the cash flow from the financing section of thestatement and describe why the dividends section is important to yourclient.Summarize your analysis and give your opinion on how effectiveABC Company is at managing its cash flow, from an investor'sperspective. Also explain whether you think ABC Company has enough cashon hand to sustain it in the long term.Recommend whether Ms. Logan should hold or sell her investment in ABC Company.Adhere to professional formal and stylistic principles, and be sure to cite sources when necessary. Part 2: Executive SummaryWrite a 2-3 page executive summary of how the Federal Reserve'smonetary policies may affect economic growth, both from a corporate and apersonal finance perspective. In order to ensure that your response iscomplete, please be sure to include commentary on the followingconcepts:The banking industryTVMPersonal and corporate saving ratesEquity financing vs. debt financingFinancial analysis
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