Please do not accept the assignment if you are not comfortable with the questions. I will be using a plagiarism checker to verify your answers are authentic, I have ran into issues in the past where this has been a problem. PLEASE MAKE SURE YOUR ANSWERS ARE 100% AUTHENTIC. To make it easier for me, please make sure your answers are numbered with the corresponding question. If possible, please use at least one reference per question, it does not have to be the same reference.
1. Examine the key reasons why a business may not want to hold too much or too little working capital. Provide two (2) examples that illustrate the consequences of either situation.
2. From the scenario, analyze TFC’s cash budget to determine key methods in which the budget may be optimized (e.g., by renegotiating terms and conditions on some of its payables, etc.). If you believe that there is room for improvement, recommend key strategies for TFC to use in order to optimize its cash budget. If you do not believe that this is the case, provide a rationale for your response.
a. Scenario attached
b. Cash budget from scenario attached as well (Excel format)
3. Create an argument supporting that using the earnings-based valuation method yields the most accurate results. Provide support for your argument.
4. Assess the challenges related to using the earnings-based valuation method in practice, suggesting how each of these challenges may be overcome. Provide support for your rationale.
5. Evaluate the likely impact on a firm’s valuation when using U.S. GAAP versus IFRS accounting methods, indicating which accounting standards you believe may yield a more favorable result. Provide support for your position.
6. Determine how a firm’s valuation using the earnings-based valuation method would be impacted when using aggressive versus conservative accounting. Provide evidence supporting your conclusion.