Principles of Accounting II
Final Paper

Scott Khy
ACC206: Principles of Accounting II (BAH1603A)
Instructor: Dawayne Rowell
February 15th, 2016

RISK PROFILE OF THE COMPANY
Review of ABC Company and the directions it is targeting. The strategy of the company is to lift the expected sales in an aggressive fashion, with the expected end target being to triple the current levels. The plan is to push sales into the targeted range of $3 million within 3 years versus the current amount which sits at $1.2 million. We will identify the perceived risk factors that may impact this aggressive strategy and its successful execution. The following will be those risk factors: i. Risk of product not meeting customer demands/expectations ii. Acceptability risk of customers with the new product being released iii. Competition levels may increase with new products being replicated, which can in turn result in the loss of market share iv. Production impacts; Identifying new product raw materials and the suppliers necessary. One of the major tasks is being able to find affordable quality raw materials from a reliable supplier who can support on a consistent basis. v. Forecasting inflation and the level of impact it will have on product. Customer cost versus production cost is a vital element in which management must be able to identify the fluctuations in price of product in future to dictate profitability level. vi. Labor is a vital resource in the production of the new products. Current levels may or may not meet the demands or the technical requirements needs to develop and launch products effectively. Being able to identify, hire and train new employees will impact the resources available to meet the sales. CURRENT COMPANY CASH FLOW
ABC COMPANY
CASH FLOW STATEMENT (direct method)
December 31, 20X2 Received from customers | $