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Abc Company

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ABC Company
Keshia Tate
Principles of Accounting II : ACC 206
Donald Morrison May 18, 2015

ABC is a manufacturing company that specifies in making cedar roofing and siding shingles. The company has annual revenue of about $1.2 Million, which is an increase at 25% from last year. Looking forward to the future the company has a goal of reaching $3 million in annual sales within the next three years. The owners has been trying to find additional products that can leverage the current ABC employee skillset as well as the manufacturing facilities. ABC Company has come to me with a task to perform an analysis with his new ideas on ways to increase profit. ABC Company wants to use some of the shingle scrap materials to build cedar dollhouses, which would help not to waste the material. This new idea would add additional raw materials and be more time-intensive to manufacture than the cedar shingles. This new product line will be able to leverage ABC’s existing manufacturing facilities as well as the current staff. Although this product line will require added expenses, it will provide additional revenue and gross profit to help reach the growth targets. Since the company is depending on me to help analyze how this product can be affordable. This will be an analysis of the company’s current financial findings and a risk profile in order to determine if this is a possible opportunity. A corporate risk profile helps a department or agency establish a direction for managing corporate risks. The profile presents a snapshot of the organization's risk status at a particular point in time by addressing the following questions from a risk perspective: where is the organization now (threats, opportunities, strengths, and weaknesses); where is it going (organizational objectives and expected results); and what are the key high-level risks that need to be managed at

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