For this discussion, assume that you are an investor and considering the buyout of an existing publicly

Question:

For this discussion, assume that you are an investor and considering the buyout of an existing publicly traded company. There are several areas you plan to focus on during your due diligence process in order to determine the organization's potential as a long-term investment.
Discuss the key factors you would evaluate on the statement of cash flows and what significance the income from operations line item has on your decision. In addition, discuss why the turnover rate and turnover rate would be of interest in your decision making. Lastly, explain what meaningful insight you might obtain by reviewing the sales allowances and sales discounts amounts for this company.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...