Financial Analysis and Recommendations for King Fisher Aviation.As the new financial manager of King Fisher Aviation, you were given a file with problems to solve and were asked to report on various financial areas of the company.
QUESTION
Here are the instructions for this assignment:
As the new financial manager of King Fisher Aviation, you were given a file with problems to solve and were asked to report on various financial areas of the company. You now have a good picture of the financial status of the company and are ready to prepare your final financial analysis report, including your recommendations to help the company grow.
Review the activities, videos, and problems from the three King Fisher Aviation scenarios as well as the complete project details on the King Fisher Aviation Project page and ensure you have met all of the paper requirements.
Your paper should include the financial status of King Fisher Aviation and the following information from your assignments throughout the course:
- From Scenario 1, evaluate the technology proposed by Shawn Paschal. What is your recommendation on the adoption of this technology? Explain your reasoning.
- From Scenario 1, what do you recommend to King Fisher regarding changing their 30 day collection period? Explain your reasoning.
- From Scenario 2, what are your recommendations on the investment project? Explain your reasoning.
- From Scenario 2, what are your recommendations for investment in the new technology?
- From Scenario 3, evaluate King Fisher’s target capital structure. What are your recommendations? Consider the impact of taxes and explain your reasoning.
The King Fisher Aviation project final project is complete with the submission of your final paper. Combined, project assignments count as 20% of your final grade. Review the evaluation rubric for detailed grading criteria on this assignment.
Submission
Save your final project paper as a Word® document using a naming convention that includes your first and last name and the activity number or description. Do not add punctuation or special charters to the file name. Submit your completed assignment to your instructor in this activity.
ANSWER
Financial Analysis and Recommendations for King Fisher Aviation
Introduction
This financial analysis report provides an overview of the current financial status of King Fisher Aviation and presents recommendations to support the company’s growth. The report incorporates findings from the activities, videos, and problems encountered throughout the King Fisher Aviation project. By assessing various aspects of the company’s financial situation, we aim to provide valuable insights and strategic recommendations to enhance its overall performance.
Evaluation of Proposed Technology
In Scenario 1, Shawn Paschal introduced a new technology that has the potential to improve efficiency and reduce costs for King Fisher Aviation. After careful evaluation, it is recommended that the company adopt this technology. The technology offers clear advantages, including streamlined operations, enhanced productivity, and potential cost savings. By embracing this innovation, King Fisher Aviation can position itself as a leader in the industry and gain a competitive edge.
Recommendations on Collection Period
Regarding the 30-day collection period discussed in Scenario 1, it is recommended that King Fisher Aviation consider reducing the collection period. By shortening the collection period, the company can improve cash flow and reduce the risk of bad debts. However, it is essential to strike a balance to maintain positive relationships with customers. Implementing effective credit control measures, such as credit checks and timely follow-ups, can ensure a smooth transition while minimizing the impact on customer relationships.
Investment Project Recommendations
In Scenario 2, King Fisher Aviation faces an investment decision. After thorough analysis, it is recommended that the company proceed with the investment project. The project exhibits promising financial returns and aligns with the company’s strategic objectives. Additionally, it provides opportunities for diversification and future growth. By investing in this project, King Fisher Aviation can expand its operations, increase revenue streams, and strengthen its market position.
Investment in New Technology
Based on the information provided in Scenario 2, it is recommended that King Fisher Aviation invest in the new technology. The technology offers substantial benefits, including improved operational efficiency, enhanced safety measures, and cost savings in the long run. Embracing technological advancements is crucial for the company to stay competitive in the rapidly evolving aviation industry. By adopting this new technology, King Fisher Aviation can optimize its processes, increase customer satisfaction, and drive sustainable growth.
Evaluation of Target Capital Structure
Scenario 3 focuses on evaluating King Fisher Aviation’s target capital structure. After a comprehensive assessment, it is recommended that the company adopts a balanced capital structure. This approach involves maintaining an optimal mix of debt and equity to maximize shareholder value while managing financial risks effectively. Considering the impact of taxes, a well-structured capital mix can provide tax advantages, enhance financial flexibility, and support future expansion plans.
Conclusion
In conclusion, this financial analysis report highlights the recommendations for King Fisher Aviation based on the evaluation of key scenarios and project requirements. By adopting the proposed technology, optimizing the collection period, investing in promising projects and new technologies, and maintaining a balanced capital structure, King Fisher Aviation can position itself for sustainable growth and success in the competitive aviation industry. These recommendations aim to improve operational efficiency, financial performance, and overall profitability, ultimately supporting the company’s long-term goals and objectives.
