Consultancy Report for Anthonys Orchard - Case Study Example

The trend analysis of the company’s key items in the income statement and the statement of cash flow. In addition, the company has three business units (prepared apple products, pick your apples, and community events). An analysis will be included that evaluates the contribution of each of the business units to the company’s total revenue. Fourth, using the company’s sales, profit, and costs, an analysis to assess the effects of the changes in sales and costs on the company’s profit will be included (CVP analysis).

Fifth, based on the company’s budgeted income statement, statement of financial position, and cash flow statement, a what if statement will be conducted to evaluate the effect on the company’s financial position, of changing some assumptions. In this section, investment appraisal tools such as ARR, payback period, net present value, and internal rate of return will be consulted to aid decision-making concerning the proposed investment. Thereafter, using the basic rule for accepting or rejecting projects as stipulated by each of the mentioned appraisal tools, investment advice will be provided.

If the results of the appraisal, point that the project is worthy to be pursued, the company will need a substantial amount of funds to facilitate the acquisition of the equipment. Consequently, an analysis of the alternative sources of finance (including the advantages and disadvantages will be provided) to enhance the choice of a preferred source of finance based on the company’s capital structure. This section will include a balanced scorecard developed to aid the measurement of the company’s performance.