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Endicott, M-FINC300-2.docx - 1 Week 2 Assignment Mary...

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1Week 2 AssignmentMary EndicottAmerican Public UniversityFINC300: Foundations in Financial ManagementDr. Edward BalliSeptember 18, 2021
2Week 2 AssignmentWhile reviewing the Annual Report of the Norme Group’s Key Financials there are a fewthings that come into question. The first obvious one would be, why submit an an unauditedfinancial report as the annual report for the corporation? This is a huge red flag, by providing thisinformation a cooperation risks releasing inaccurate information to stakeholders, consumers andother competitors in the same market space who may be interested in the overall health of thecompany. A company would typically do an unaudited financial report internally throughout thecompany as an overall financial picture or to forecast future trends on the company’s return oncapital. This can keep costs down and still give them a quick picture as to what’s going on, whilethe an audited report will be completed by a third party CPA, it will take an in depth look at all ofthe companies expenses, and ensure transparency to all stakeholders.Another area of concern on the report is the non-reoccurring role of the numbers in theitems impacting line, which shows negative values, are they going to impact the overallcomparability each year? The annual report did not address the changes in working capital butchose to report on cash flow from operating activities, but one of the biggest red flags on thisreport is that the overall shares of the company went up 60% in a four-year period anddrastically, almost 40% from 1999 to 2000 alone. This shows that something more is going onand there is a need for transparency within the company which an audit would have been the

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Term
Fall
Professor
NoProfessor
Tags
Balance Sheet, Generally Accepted Accounting Principles, Montreal Metro

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