For this assignment, you will take a set of financial reports from a 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 , and so on? 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 might be impacted?
Some other examples could be: what happens if you reduce payroll or reduce inventory , or make a significant capital purchase? What would be impacted?
