Evaluating financial statements and using financial analysis methods is a critical part of the decision to make capital investments. The goal of capital management is to acquire and maintain sufficient working capital and assets. This helps an organization meet operating and expense obligations, while also keeping a sufficient cash flow. It is also a way to confirm that capital purchases and agreements are made with ethical standards. This part of your project will require you to complete two (2) article reviews and report on your findings. Then, you will apply your findings to how capital decisions can be made in your specific case; as well as comparing your viewpoint to the authors’ and recent ethical scandal. Keep in mind that you will use your article analysis to either support or disprove the purchase of an information system in the final portion of your project.
Submit a minimum 3-page report that:
Article Review #1
Read the article Expanding Credit Lines in Order to Expand which discusses the challenges related to expansion financing.
Article Review #2
Read the article The New Break-Even Analysis which looks at expanding how healthcare providers look at break-even analysis and includes some non-financial considerations.
The ‘Enron Scandal’ involving acts of embezzlement is one of the most well-known financial, ethic scandals in modern day history. Perform a web search of the Enron Corporation Scandal to find more information.
Use the following websites on ethics to help support your course of action in upholding ethical standards.
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