Evaluation Of A New Product Line The Parties

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Financial Report Dianglio V. Baylor ACC 206 Instructor Peggy January August 3, 2015 When considering to introduce a new product line the parties involved should consider the advantages and disadvantages in terms of costs incurred and the revenue to be obtained from the sale of the product. Risk profile is the assessment of an organization 's eagerness to take a risks, and also the dangers to which an association is exposed. A risk profile recognizes: The satisfactory level of risk a company is prepared to acknowledge. An organization 's risk profile attempts to decide how the company 's willingness to take risk will influence its general decision-making methodology. The more the risk connected with any investment, the more…show more content…
The organization additionally risks uneven income as an aftermath of bad weather, which backs off construction plans. The organization will experience challenges because of expansions of costs and shortage of raw materials utilized in the manufacturing of building materials; this exposes the organization to the danger of coming up short on supplies and extreme reduction in profit margin. Numerous claims are documented against organizations managing building materials as a consequence of faulty products, which lead to faulty structures. The organization risks paying huge fines on the off chance that it is blamed for offering results of this nature and fails to win the case. (Villanova, N., Moscatiello, S., Ramilli, S., Bugianesi, E., Magalotti, D., Vanni, E.& Marchesini, G. (2005).) Company cash flow ABC COMPANY Statement of Cash Flows Cash flows from operating activities Cash receipts from customers $1,200,000 Cash generated from operations 6,480 Net cash from operating activities $1,206,480 Cash flows from investing activities Purchase of property, plant, and equipment (42,000) Cash Flows Used By Investing Activities (42,000) Net change in cash $1,164,480 The cash flow statement above demonstrates that the
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