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Report | Accounting Information System

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Added on  2020-05-04

Report | Accounting Information System

   Added on 2020-05-04

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Running head: ACCOUNTING INFORMATION SYSTEMAccounting information systemName of the UniversityName of the StudentAuthors Note
Report | Accounting Information System_1
1ACCOUNTING INFORMATION SYSTEMTable of ContentsBusiness situation and purpose of analysis:...............................................................................2Description of tested scenarios:.................................................................................................2Conclusion:................................................................................................................................4References list:...........................................................................................................................5
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2ACCOUNTING INFORMATION SYSTEMTo: Mr Steve, Owner of Philly landscapingFrom: XYZ Date: 25th October, 2017Subject: Investmentdecision making of retirement plansBusiness situation and purpose of analysis:The present business situation is of Philly landscaping who has been in business forquite long time and its owner Steve is concerned about his retirement plan. In this regard,owner of business is provided with their investment options after his retirement. He would beguided with informed decision making using the decision support system software. The threeinvestment options comprise of selling the company and investing the proceeds generatedthat would yield annual income of $ 100000. Secondly, building company by taking out loanthat help in running operations by hiring general manager at an annual salary of $ 85000.Thirdly, he has the options of buying out. The main purpose of analysis is to determine theimpact on annual cash flows in all the scenarios mentioned above. Moreover, the analysis isdone to forecast the future cash flow that would help in assessing all three investmentsoptions.Description of tested scenarios:Do NothingLoan-Low ROILoan-High ROIBuyoutSum of Cash Flow from 2018 to 2027$591,205$179,878$713,261$1,000,000Year with enough profit to general manager?806NAYear with income over expected annuity earnings?00310If Steve considers doing nothing then this would lead to reduction in customer base by5% and generates an annual income of $65000. The forecasted amount of cash flow stood at
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