Cash Flows at Warf Computers, Inc. Mini-Case Study

Cash Flows at Warf Computers, Inc. Mini-Case Study

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This paper is the repetition of 111878 and because the paper was poorly written the student did not pass and now have to repeat the class so make sure you get a different writer to handle this paper. hear below are the instructions please he should carefully read the instructions before completing this paper.

• Cash Flows at Warf Computers, Inc. Mini-Case Study.

This case study, found on page 42 of your course text, deals with a small computing firm that has developed a new, unique product and has decided to seek outside funding. You have been asked to help prepare the necessary financial statements. After reading the case study:

• Complete the financial statement of cash flows and the accounting statement of cash flows on the excel template provided and the respond to the questions mentioned.

• Briefly answer the three additional questions referencing cash flows and expansion plans found on page 43 (5-6 sentences each minimum).
Remember to include proper APA citations in all Mini-Case Study assignments.

I have attached a documents containing information that will be use in completing this paper. It is critical that the writer pay attention to details for this paper and all calculations must be clearly shown where require. The writer must respond to the 3 questions asked in the mini case as indicated in the assignment requirement. The questions are in the document of the mini-case study. I have also included an excel template that will be use for the calculations, the writer will just complete all calculations in the template.

Remember to include proper APA citations in all Mini-Case Study assignments.

Resources

• Adams, S. (2008, February). Fundamentals of business economics. Financial Management (UK), 46–48. Retrieved from Business Source Premier database.

This article provides an analysis of the principal-agent problem and discusses some of the ways that many companies address the issue.

• Rappaport, A. (2006, September). Ten ways to create shareholder value. Harvard Business Review, 66–77. Retrieved from Business Source Premier database.

In this article, the author states his belief that there are certain principles that when followed will result in increased shareholder value for a company. He provides a review of the 10 steps he has found to be most important and provides a brief description of each.

• Shleifer, A., & Vishny, R. (1997). A survey of corporate governance. Journal of Finance, 52(2), 737–783. Retrieved from Business Source Premier database.

The authors use a survey instrument to study how financial suppliers use corporate governance to assure that they receive a return on their investment.

• Almazan, A., Banerji, S., & DeMotta, A. (2008). Attracting attention: Cheap managerial talk and costly market monitoring. Journal of Finance, 63(3), 1399–1436. Retrieved from Business Source Premier database.

This article presents a new theory as to the best way to increase shareholder value by seeking market attention while the firm is undervalued

Readings
•Ross, S. A., Westerfield, R. W., & Jaffe, J. (2013). Corporate finance (10th ed.). New York: McGraw-Hill Irwin.

-Chapter 1, “Introduction to Corporate Finance”
This chapter introduces some of the basic ideas in corporate finance; namely, capital budgeting, capital structure, and cash flows. In addition, there is a discussion on maximizing the value of stock, one of the most important concepts in finance.

-Chapter 2, “Financial Statements and Cash Flow”
This chapter introduces and discusses basic corporate accounting procedures, as well as devices used to calculate a corporation’s cash flow from operations, changes in fixed assets, and changes in working capital.

SAMPLE ANSWER

Cash Flows at Warf Computers, Inc. Mini-Case Study

Question 1

The Warf Computers’ cash flows are undoubtedly satisfactory considering that the company has not been in operation for long. This is attributable to the fact that the company debt and equity is not considerable compared to many small companies which oftentimes tend to be highly indebted. Moreover, the company assets both current and fixed seem significant to drive the company operations for long. Ross, Westerfield & Jaffe (2013) note that a company is considered stable when there is considerable positive difference income and expenses as the case with Warf Computers’ cash flows.

Question 2

Accounting cash flow is the cash flow statement which accurately describes Warf Computers cash flows because it represents a detailed statement of each aspect of the company’s cash flows. As a result, accounting cash flow statement provided information which accounts for each activity undertaken by the company irrespective of whether it involves generation of income or spending.

Question3

From the answers provided in the above questions, it is evidently clear that Nick’s expansion plans can be achieved irrespective of them being relatively aggressive. This is due to the fact that the company can outsource funding from debts as well as other sources of income (Almazan, Banerji & DeMotta, 2008).

References

Adams, S. (2008). Fundamentals of business economics. Financial Management, 46–48.

Almazan, A., Banerji, S., & DeMotta, A. (2008). Attracting attention: Cheap managerial talk and costly market monitoring. Journal of Finance, 63(3), 1399–1436.

Rappaport, A. (2006). Ten ways to create shareholder value. Harvard Business Review, 66–77.

Ross, S. A., Westerfield, R. W., & Jaffe, J. (2013). Corporate finance, (10^th ed.). New York: McGraw-Hill Irwin.

Shleifer, A., & Vishny, R. (1997). A survey of corporate governance. Journal of Finance, 52(2), 737–783.

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