FIN-320 – A Comprehensive Overview of Finance Concepts and Principles

Introduction:

FIN-320 introduces key finance concepts and principles, helping students build a strong foundation in financial management and analysis. Enhance your learning with expert guidance through MBA Assignment Help, designed to support your success in both academic and professional finance fields.

FIN 320 1-1 Discussion: Financial Management’s Role in Business

Instructions of FIN 320 1-1 Discussion: Financial Management's Role in Business

1-1 Discussion: Financial Management’s Role in Business

If you have a strong understanding of financial principles and reports, you’ll have a better chance at success. This is true whether you’re pursuing a career in finance or not.

Financial management requires much more than analyzing accounting records. It’s essential to recognize how financial data and calculations are utilized to support an organization’s operations, finances, and decision-making processes.

In this discussion, you’ll introduce yourself to the class and reflect on finance, your experience, and this course.

Create one initial post and follow up with at least two response posts.

For your initial post, address the following:

• Please introduce yourself and your educational or professional background to the class.
• Have you ever used financial documents (such as tax returns and financial statements) to make a personal or business decision? Explain.
• What terms or concepts come to mind when you think about finance?
• What concerns or excites you about the course?

For your response posts, address the following:

• Review your peers’ posts and find posts that express different perspectives from your own. How do your views differ?
• What advice, resources, or encouragement would you offer to your peers to help them succeed in the course? Be mindful and respectful, particularly if you are responding to someone who is concerned about the course.

To complete this assignment, review the Discussion Rubric.

Let’s Start FIN 320 1-1 Discussion: Financial Management Role in Business

Welcome to the FIN 320 1-1 Discussion: Financial Management Role in Business. This is the first task in this course, and it was created based on your knowledge of the topic. Here, I have simple and general instructions on completing the Discussion posts, Assignments, and Projects of FIN 320 and an example of how to solve each. With this in mind, the study of Finance is not merely the process of counting numbers but an approach to making decisions that will lead to changes in company and personal fortunes. Get ready to learn the strategies and understand all the questions related to Financial Management’s Role in Business from this How-To OwlIsdom Guide. Let us begin with the guide.

Please tell the class about yourself and your educational or professional background.

About Me

Firstly, you have to tell the class something about yourself briefly. It is better to concentrate on when you met Finance in your life.

• Sharing Your Background: First, say your name, where you are from, and the major you are studying or the area of interest you have.
• Include any education or professional experience related to the area of research as briefly as possible. Make it as simple as possible in simple language to increase the chance of reaching a layperson.
• Reflecting on Your Experience with Finance: This lesson has provided workshop activities where students articulate real-life situations in which they have worked with financial papers or exercises. It could just be handling finances, or it could be something like investing.

Example

Hello everybody, I am Alex from Denver, studying Finance. I started using Finance by exercising the responsibility of making budgets for my family, which encouraged my curiosity about money. Eventually, I invested in stock, buying minimum investments to learn the trends that prevail in the market. These nine years made me realise how important it is to make informed financial decisions and drove me to make Finance my profession.

Have you ever used financial documents (such as tax returns and financial statements) to make a personal or business decision? Explain.

Understanding and Using Financial Documents

Now, we will discuss the understanding of how to use documents in FIN 320 1-1 Discussion: Financial Management: Its Significance for the Business.

• Navigating Tax Returns: Describe what it means to have tax returns and why they are significant. You can also tell a lot about an individual’s or a business's circumstances. Offer instruction on determining which parts of a tax return document are most important.
• Analyzing Financial Statements: Explain what financial statements are and why these statements are helpful to the decision-making process. Suggest a hint on searching for revenues and expenses to determine a statement’s profitability.

Example

I have used financial documents for individual and business purposes in this ill-treatise. For example, tax returns are crucial since they inform my side business’s status, profitability, and tax optimization plan. I always focus on the income and tax-paid areas to see the performance and planning. On the other hand, analyzing financial statements has been critical in making my investment decisions. In my case, revenue and expense figures are critical to assessing a business organization’s financial performance. These documents inform assets because they help in decision-making by pointing out the organization’s financial positives and negatives.

What terms or concepts come to mind when you think about finance?

Grasping Basic Finance Terms and Concepts

The subsequent part of FIN 320 1-1 Discussion, Financial Management’s Role in Business, assists us in learning simple definitions and ideas.

• Defining Key Terms: List some of the most common finance terms, such as assets, liabilities, and equity. Describe each in a single line to make it easy to understand, even for new students.
• Exploring Fundamental Concepts: Point out some basic finance concepts regarding budget as a concept, or investment risk and return as an example. To better understand these realities and make these concepts tangible, they can be illustrated by examples.

Example

The following definitions and ideas could be listed without delay when considering finance. First, assets are items of equity, such as cash or property, that an organization owns. “Debts” are the things people owe to others through bonds like loans or mortgages. Assets minus liabilities are often referred to as owners’ interest or ownership. One of the preliminary principles of finances is Budgeting, which is essential for creating a plan on how to spend your money so that one does not have to borrow. The other common one is the investment risk and return, where potential actuary returns are often demonstrated to be inverse to risks. These basics provide a foundation that can enable people to have the next level of wisdom in the management of their funds, as well as in making wise decisions in their financial transactions.

What concerns or excites you about the course?

Setting Expectations for the Course of FIN 320: Principles of Finance

End FIN 320 1-1 Discussion: Financial Management’s Role in Business. Provide a short description of what you expect to learn from the FIN 320 Principle of Finance class.

• Addressing Concerns: Admittedly, finance may appear challenging; however, stress the applicative nature of the skills and information to be imparted by the course. Encourage an open mindset.
• Highlighting Excitement: It is always more beneficial to share something inspiring about the course, such as new investment techniques or financial market analysis. This can motivate others.

Example

I will not deny the fact that diving deep into the realm of finance at first could be hectic. Oh, there is a lot that one can learn, from the most straightforward terms to the most complex strategies. However, what I find more interesting about the FIN 320 Principles of Finance course is the opportunity to build up basic principles in these areas. I have always wanted to know how financial markets are structured, learn about various investing approaches to gain skills beneficial to pursuing a career, and learn the importance of proper personal finance. I am also flexible and look forward to understanding how this course will transform me with real-life competence in finance.

Review your peers’ posts and find posts that express different perspectives from your own. How do your views differ? What advice, resources, or encouragement would you offer your peers to help them succeed in the course? Be mindful and respectful, particularly when responding to someone concerned about the course.

Peer Responses

I understand that one has to interact with and respond to the questions from peers. However, sometimes, it is necessary to answer the questions measurably and more professionally. Some posts you will create for the FIN 320 Discussion might require your peers’ responses. Following the guidelines below, you can quickly answer the questions during FIN 320 1-1 Discussion: Financial Management Role in Business.

• Finding Diverse Perspectives: While reading your peers’ posts, seek an opinion or a story that sets and differs from yours. This will change perception and help appreciate the aspect of finance more deeply.
• Offering Support and Resources: If peers share concerns or interest in something, recommend some advice or information that you have to them. Positive reinforcement can also do much harm. Also, polite answers should be written; kindly and encouraging language should be used to do so.

Response 01

Hey Alex! It is nice to see you build your passion, from managing a household budget to investing and other areas of finance. I like your adoption of practicality in making important insights on crucial financial items such as tax returns and financial statements. Whereas my fascination with finance emerged more from an academic lens, beginning with theories without even a glance at their practical application, I find your practical insight inspiring. Good luck. That is great enthusiasm. You will do fantastic.

Response 02

Thus, the FIN 320 1-1 Discussion instructions guidelines require us to write two peer responses. The given instructions have been responded to in one response. Following these directions allows you to quickly and efficiently respond to your peers for 1-1 Discussions.

Closing

This How-To Guide helps to make introductions, finance, and peer engagement easier, less complicated, and easily understandable to any student with little understanding of finance.

You can also read our FIN 320 next module 2-2 Journal on Financial Statements and Cash Flow Management.

FIN 320 2-2 Journal: Financial Statements and Cash Flow Management

Instructions of FIN 320 2-2 Journal: Financial Statements and Cash Flow Management

Overview

This journal is the first in a series of connected assignments culminating with Project Two. In Project Two, you’ll analyze and evaluate a business’s financial health. You’ll also recommend financing options that improve the company’s financial health. Use the Project Two Business Options List to choose the business that you’ll examine in Project Two. Then use Mergent Online to locate the most recent quarterly financial statements for the business: the balance sheet, the income statement, and the cash flow statement.

To succeed in your Project Two assignment, you will need to understand the role of financial statements and how they help a business determine its financial health. You will also need to explain why cash flow management is important to the financial health of a business.

Directions

Write a brief journal that introduces the business you chose for your Project Two assignment.

Specifically, you must address the following rubric criteria:

• Business Selection: Describe the business you chose, including the business name and what the business offers consumers.
• Financial Statements: Using Mergent Online, download and submit a copy of the balance sheet, the income statement, and the cash flow statement from the most recent fiscal quarter for the business you chose.
• Financial Statement Role: Explain why financial statements are important to a business and how they help businesses determine their financial health.
• Cash Flow Management: Explain why cash flow management is important to a business and its financial health. Use a financial news story from the past two months as an example to support your claims.

What to Submit

Your journal submission should be a 3- to 4-paragraph Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Any sources should be cited according to APA style. Also, submit the Excel files for your chosen business’s balance sheet, income statement, and cash flow statement from Mergent Online.

Welcome to FIN 320 2-2 Journal: Financial Statements and Cash Flow Management

This journal is one of the related exercises leading up to Project Two. In Project Two, you will conduct a business financial analysis and evaluation of its financial position. You will also advise on sources of finance that help the company enhance its financial position. I will provide brief and descriptive guidelines to solve the FIN 320 2-2 Journal: Financial Statements and Cash Flow Management with a dummy solution. This Owlisdom How-To Guide will provide you with steps and tips to respond to all the questions concerning the FIN 320 2-2 Journal. Let us begin with the guide.

Describe your chosen business, including the business name and what the business offers consumers.

Introduction to Johnson & Johnson

In this first section of the FIN 320 2-2 Journal: Financial Statements and Cash Flow Management, we will discuss the business we selected for this Module 2 Project. I have chosen Johnson & Johnson. Looking at the Project Two Business Options List, you can pick a business type that suits you.

• Begin with a statement or two about what Johnson & Johnson is and what it does. 
• It operates globally and mainly offers consumer health products, pharmaceuticals, and medical devices. 
• It emphasizes its goal to expand prosperity and access, produce enduring constructive alterations in communities’ health status, and, ultimately, make health achievable for all people worldwide.

Example

Johnson & Johnson, a leading multinational Corporation, was selected for my Module 2 Project. It covers segments including the consumer, which touches on health, pharmaceuticals, and medical devices (Investor Relations | Johnson & Johnson, n.d.). Considering the primary goal of bettering access and affordability and improving the health of communities, Johnson & Johnson aims to make health possible for everyone worldwide.

Using Mergent Online, download and submit a copy of the balance sheet, the income statement, and the cash flow statement from the most recent fiscal quarter for the business you chose.

Accessing Financial Statements

Next, for the FIN 320 2-2 Journal: Financial Statements and Cash Flow Management, we will seek the most recently filed quarterly financial statements of the business selected above. The FIN 320 2-2 Journal instructions state that we need to pull financial statements from Mergent Online through the SNHU Portal. Unfortunately, Mergent online is unavailable, so I downloaded Johnson & Johnson’s financial statements from its official website. In the same journal, I will ensure that I attach the necessary financial statements and the solution to the FIN 320 2-2 Journal.

• Go to the Johnson & Johnson website, navigate to the Investors page, and download balance sheets for the last quarter. 

Explain why financial statements are essential to a business and how they help businesses determine their financial health.

Understanding the Role of Financial Statements

In this section of the FIN 320 2-2 Journal, we will discuss the role of financial statements for businesses in the chapters Financial Statements and Cash Flow Management.

• The financial statements are relevant since they show the business’s financial position. 
• A balance sheet states a company’s total assets, liabilities, and shareholders’ equity and provides information about its stability. 
• The income statement portrays the company’s earnings during a given period, while the cash flow statement shows the generation of cash and its utilization in a given period, thus revealing liquidity. 

Example

Financial statements are considered necessary for any business since they summarize its financial position (Kimmel et al., 2020). A balance sheet showing a company’s liability, assets, and equity is essential in understanding the company’s financial position at a given period. It makes it possible to evaluate the readiness of the business to meet its responsibilities and expand its opportunities. The income statement gives a direction on the current level of profitability and usually compares the company’s ability to generate revenue from operations against its expenditures. On the other hand, the cash flow statement provides a clear picture of how cash is made and used, as well as the focus of the business in terms of liquidations (Fridson & Alvarez, 2022). Such documents are essential for important decisions and the company’s correct financial management.

Explain why cash flow management is essential to a business and its financial health. Use a financial news story from the past two months as an example to support your claims.

The Significance of Cash Flow Management

Next, in FIN 320 2-2 Journal: Financial Statements and Cash Flow Management, we will explain why and how Cash Flow Management is essential to a business. 

• Emphasize the role of cash flows, especially understanding it as the decisive factor of business viability. 
• The lack of careful cash flow management can be problematic even for companies that reported a profit.
• Use a recent financial news piece related to Johnson & Johnson or, better yet, a similar company to explain the significance of cash flow for decision-making and the general well-being of a business. 
• Include how it assists in meeting or funding the needs of operating, investment, and other operations.

Example

Cash flow management plays a central role in the functioning of companies and organizations, thus meeting all internal and external commitments (Wiatt et al., 2021). Even profitable firms might face various issues if they fail to embrace this concept. For instance, a recent story that explored Johnson & Johnson noted how the company embarked on a cash flow management approach to avoid costs that seemed to arrive unexpectedly from left field; managing cash flow ensures that a company can take care of business and continue with strategic investments without necessarily putting the company’s financial health in harm’s way. This example sheds much light on the aspect of Cash flow management and its role in the success of business decisions. They prove their responsibility to keep steady and nurture development for communities coping with financial risks or gains.

Closing

With this How-To Guide, you can learn how analyzing financial statements and having a grip on cash flow is fundamental to judging a business’s health. Following the guidelines, you can easily solve FIN 320 2-2 Journal: Financial Statements and Cash Flow Management Journal. Good luck with our FIN 320 next module on 3-2 Project One: Financial Analyst Job Aid.

References

Fridson, M. S., & Alvarez, F. (2022). Financial Statement Analysis: A Practitioner’s Guide. John Wiley & Sons.

Investor Relations | Johnson & Johnson. (n.d.). Retrieved April 2, 2024, from https://www.investor.jnj.com/overview/default.aspx

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2020). Financial Accounting: Tools for Business Decision-making. John Wiley & Sons.

Wiatt, R. D., Lee, Y. G., Marshall, M. I., & Zuiker, V. S. (2021). The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural Disaster. Journal of Family and Economic Issues, 42(1), 203–214. https://doi.org/10.1007/s10834-020-09710-y

FIN 320 3-2 Project One: Financial Analyst Job Aid

Instructions for FIN 320 3-2 Project One

3-2 Project One: Financial Analyst Job Aid

Competency

In this project, you will demonstrate your mastery of the following competency:

• Describe the purpose and function of financial management in an organization

Scenario

You’ve been an entry-level financial analyst for six months. Your supervisor plans to fill another entry-level financial analyst position on your team. Your supervisor has asked you to create a job aid about the financial analyst role. The purpose of the job aid is to help the new hire move smoothly into the role. The job aid must describe the responsibilities of a financial analyst. It must also describe the impact the role has on a business.

Directions

Create a job aid for a new hire to an entry-level financial analyst position. Your job aid should be thorough. But it should also be easy to understand for someone new to the field of finance. You’ll use the Project One Financial Analyst Job Aid template (linked in the What to Submit section) to complete this assignment.

In your job aid, you’ll give a general overview of financial management and its importance to a business. Specifically, you must address the following:

1. Financial Responsibilities: Describe the responsibilities of a financial analyst.
   1. Write five to seven bullet points outlining the responsibilities a financial analyst has. Use complete sentences.
2. Financial Management Decisions: Discuss the importance of analyzing and managing finances to help make business decisions. Give examples to support your claims.
   1. Consider the bullet points you outlined in the previous section. Then write a brief paragraph that answers the following questions. Use examples to support your claims.
      1. How do those responsibilities help inform management decisions?
      2. What would happen if management didn’t have this information?
3. Accounting Principles: Explain how to use accounting principles to analyze a business’s financial health. Give examples to support your claims.
   1. Write a brief paragraph that explains how financial analysts use accounting principles to analyze a business’s financial health. In your paragraph, also answer the following questions:
      1. What accounting information do financial analysts use?
      2. What would happen if that information were not available or was not accurate?
4. Financial Statements: Describe how to use financial statements to help businesses make finance-related decisions. Give examples to support your claims.
   1. Think about how financial analysts identify the information contained in financial statements. Then write a brief paragraph that answers the following questions. Use examples to support your claims.
      1. What do financial analysts need to do their job?
      2. What types of finance-related business decisions would this information help businesses to make?
5. Financial Terminology: Explain how a financial analyst uses key financial terms every day. Make sure your response is clear and easy to understand.
   1. Define each term listed below. Then, for each term, write one or two sentences showing how a financial analyst might use the term. In your response, imagine the analyst is communicating with management, helping them make an important decision.
      1. Financial statement
      2. Liquidity
      3. Working capital
      4. Diversification
      5. Time value of money

Welcome to 3-2 Project One: Financial Analyst Job Aid

In the How-To Guide, FIN 320 3-2 project one: Financial Analyst Job Aid, general and descriptive instructions, and a dummy solution for each section of the FIN 320 project will apply. The present Owlisdom How-To Guide will help you establish ways to address all the questions regarding the final Fin 320 project. Let us begin with the guide.

1. Financial Responsibilities: Describe the responsibilities of a financial analyst.

A. Write five to seven bullet points outlining a financial analyst’s responsibilities. Use complete sentences.

Financial Responsibilities

We will discuss the responsibilities of a financial analyst at the beginning of the FIN 320 3-2 project, one: Financial Analyst Job Aid.

Example

• Analyze Financial Data: A financial analyst scrutinizes features of people’s finances, past patterns, future possibilities, and potential investments.

• Evaluate Financial Statements: They analyze certain companies’ financial statements to establish their solvency, profitability, and liquidity.

• Support Budgeting Process: Through budgeting, financial analysts complement the development of financial plans used in different organizations to facilitate the allocation of funds. Some cost units are given an authorized amount of cash within which they can spend money without further approval.

• Conduct Risk Analysis: They undertake prospective and audit risks to assess the stakes of prospective ventures and business decisions.

• Provide Investment Recommendations: Financial analysts make suggestions about investment prospects that suit a particular company’s goals and plans.

• Prepare Financial Reports: They produce reports that summarize financial information, analyze results, and make recommendations that will be helpful to management and shareholders.

• Collaborate with Team Members: Financial analysts cooperate with other team members across organizational divisions and departments to enhance the efficient implementation of financial strategies that enhance a company’s performance.

2. Financial Management Decisions: Discuss the importance of analyzing and managing finances to help make business decisions. Give examples to support your claims.

A. Consider the bullet points you outlined in the previous section. Then, write a brief paragraph that answers the following questions. Use examples to support your claims.

I. How do those responsibilities help inform management decisions?

ii. What would happen if management did not have this information?

Financial Management Decisions

In this section of FIN 320 3-2 project one, we will examine a financial analyst’s financial management decisions as we develop the financial analyst Job aid.

• Show how analysis, which includes trend analysis and risk evaluation, impacts strategic planning and decision-making directly by feeding the decision-making process with facts.
• Describe how poor or inadequate financial information may lead to wrong investment decisions and resource utilization, resulting in financial problems and lost opportunities.

Example

Consultants of financial analysis make recommendations when making decisions concerning firms’ financial performances. They help the management make the necessary forecasts and suitable investments at the right time. For example, the information they glean from financial statements can inform issues related to the expansion of markets or alert decision-makers to certain risks. With such insights, management may make better investment decisions, compromise on financial stability, or overlook growth prospects. As a result, these financial analysts work towards ensuring that decisions are well-researched and that these decisions are long-term oriented.

3. Accounting Principles: Explain how to use accounting principles to analyze a business’s financial health. Give examples to support your claims.

A: Write a brief paragraph that explains how financial analysts use accounting principles to analyze a business’s financial health. In your paragraph, also answer the following questions:

I. What accounting information do financial analysts use?

ii. What would happen if that information were not available or accurate?

Accounting Principles in FIN 3-2 project one: financial analyst job aid

Then, the accounting principles will be described in the example to explain how these concepts influence understanding the business’s financial state.

• Explain the application of at least three core documents by financial analysts to assess the financial difficulty of a business; the documents include balance sheets, income statements, and cash flow statements.
• Explain the risks and potential negative consequences of decisions made without or with incorrect accounting data, like financial mismanagement or loss of investors’ confidence.

Example

Accounting standards and fundamental file formats, including balance sheets, income statements, and cash flow statements, are used by financial analysts to analyze the financial situation of a business entity. These documents provide information about financial strength, solidity, financial performance, rationality, and financial flexibility to make the right decisions. For instance, balance sheets indicate an organization’s financial stability and solvency, income statements measure business performance in terms of profits, and cash flow statements measure the sustainability of the business operations. More accurate data flow is needed to avoid incorrect conclusions, financial misuse, and adverse effects on investors. Hence, it is essential to have accurate financial information regarding practical application and planning in organizations.

4. Financial Statements: Describe how to use financial statements to help businesses make finance-related decisions. Give examples to support your claims.

A: Consider how financial analysts identify the information in financial statements. Then, write a brief paragraph that answers the following questions. Use examples to support your claims.

I. What do financial analysts need to do their job?

ii. What types of finance-related business decisions would this information help businesses to make?

Financial Statements

This section of the FIN 320 3-2 project one: Financial Analyst Job Aid, the subsequent section will highlight the use of financial statements in a Financial Analyst’s Job.

• Emphasize financial analysts’ utilization capabilities regarding diverse and detailed financial statements for analysis and decision-making.
• Discuss how the information in financial statements can be used to make strategic business decisions, such as investment options, cost-saving measures, and resource management.

Accounting Principles in Analyzing Financial Health

Accounting, as applied by financial analysts, is used to examine a business’s financial position with diligence, with the help of primary accounting statements of balance sheets, income statements, and cash flow statements. The balance sheets of these documents provide the onlooker with ideas on a company’s prosperity, solvency, and standard. Analysts must use innovative, urate, fiscal, and timely records to evaluate performance and solvency. Indeed, the absence or inaccuracy of such information entails wrong financial planning and control, misplaced investment decisions, and likely loss of investors’ confidence, affecting the business’s functional and strategic management decisions.

Utilizing Financial Statements for Business Decisions

Financial analysts need to have a full view of a company’s statements when performing their duties. It also allows them to acquire important information about the firm’s operating profit and loss statement, balance sheet, and cash flow ratio. Based on this information, analysts can help the business make decisions regarding the company’s finances, such as the best investment and profitable financial projects, cost-cutting measures, and the most effective use of financial resources. Financial statements are essential to providing information that helps a company manage its resources to achieve financial health and growth while avoiding excessive investment risk.

5. Financial Terminology: Explain how a financial analyst uses key financial terms daily. Make sure your response is clear and easy to understand. A: Define each term listed below. Then, for each term, write one or two sentences showing how a financial analyst might use the term. In your response, imagine the analyst communicating with management, helping them make an important decision. 1. Financial statement 2. Liquidity 3. Working capital 4. Diversification 5. Time value of money

Financial Terminology

The last section of FIN 320 3-2 project one, Financial Analyst Job Aid, will examine how a financial analyst uses vital financial terms to make their response clear and comprehensive.

• Exploring what the term means and using an example from practice to explain how it provides the starting point for applying financial analysis and discussing decisions and strategy with management.
• Define liquidity and discuss how the concept evaluates a firm’s capacity to pay its near-term debts.
• Working capital is explained, and its use in assessing business operational performance and financial strength is demonstrated.
• Define diversification and show how it works in risk mitigation plans that you present to management.
• Explain what value the concept has to investment decisions and in conversations about financial planning.

Example

A large number of financial terms are used daily by financial analysts to explain financial information that is easily understandable by third parties. For instance, when referring to a “financial statement,” the listener or reader learns about the business’s financial position. Liquidity is a situation whereby an individual or company can be in a position to sell his or her assets easily should there be a need to ensure that specific responsibilities are met within the shortest time possible. “Working capital” measures business performance for efficiency, while “Diversification ” refers to investing to minimize risk. The concept of “present value” determines the current value of money and investments to aid decision-making.

Key Terms Explained

• Financial Statement: An account that gives information on a business’s financial transactions and affairs. Managers and analysts utilize them to explain the viability of a company to the management.
• Liquidity shows how easily assets can be converted into cash. Analysts evaluate liquidity to check whether the business can meet short-term requirements within its grasp.
• Working Capital: Current assets and current liabilities. It compares the company’s record with its operational efficiency and short-term financial performance.
• Diversification is investing in different securities to minimize risk as much as possible. Consultants will likely suggest production to lessen possible risks in a volatile environment.
• Time Value of Money: A theoretical view is that cash available at present is far superior to the same Amount in the future because of its interest rate. This principle assists analysts in valuing investments and identifying a project’s break-even point.

Closing

This How-To Guide teaches you about a financial analyst’s roles and duties in meeting the organization’s needs. It also helps you analyze the FIN 320 3-2 project one: Financial Analyst Job Aid by summarizing each section. So, with the help of the guidelines, you may solve the FIN 320 3-2 project like a professional. Good luck! With our upcoming FIN 320 first module, 1-1 Discussion: Financial Management’s Role in Business.