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Sensitivity Analysis

# Sensitivity Analysis - 1 Computer Assignment II Anton...

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1 Computer Assignment II Anton Saadeh 10995740 BUS 503 Accounting Information for Decision Making University of La Verne May 3rd , 2010

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2 MEMORANDUM Date: May 3, 2010 To: Allyn T. Brown, President of Global Electronic Company From: Anton Saadeh Subject: Sensitivity Analysis for the 1 st Quarter, 20X1 Scope and objective of the work performed We analyzed the Global Electronic Company’s budget for the first quarter. The analysis is included retained earnings, income statement and balance sheet. From the analysis of the paper, cash flow has changed because of the collections from sales on account during the first quarter. The company collects the cash in three months when the sale is made. The biggest amount was collected in the last month of the payment. Significance of the sensitivity analysis Sensitivity analysis is a method used to clarify how different values of an independent variable will impact a particular dependent variable under a set of assumptions. Sensitivity analysis helps
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