Scenario:

Imagine you are the CFO of a medium$-$sized manufacturing company that has been operating for $10$ years. The company is considering a significant investment in new plant equipment to increase production capacity and efficiency. This investment will require acquiring new assets, calculating depreciation, and potentially disposing of old equipment. Additionally, the company is exploring financing options, including issuing stock, taking on long$-$term debt, or a combination of both. The decision comes at a time when the company is also considering entering into a partnership with a supplier to reduce costs and increase supply chain efficiency.

Task:

Identify and Recall: List the accounting transactions that would be involved in acquiring new plant equipment, financing the investment, and entering into a partnership. Include transactions related to depreciation and disposal of old equipment.

Organize and Retell: Explain how these transactions would be recorded in the company's financial statements. Focus on the impact of these transactions on the income statement, balance sheet, and statement of cash flows.

Analyze and Support: Assess the potential financial impact of these decisions on the company's short$-$term and long$-$term financial health. Consider the effects on liquidity, solvency, and profitability. Provide a rationale for your analysis, including the reasoning behind the choice of financing option and the partnership.

Interpret and Conclude: Based on your analysis, recommend a course of action for the company. Support your recommendation with logical justification, considering both the financial and strategic implications of the investment and partnership. Discuss how your recommendation aligns with the company's goals for sustainability and growth.

Requirements:

Your response should demonstrate a comprehensive understanding of accounting principles and procedures as they apply to the scenario.

Use analytical tools and ratios to support your analysis and conclusions.

Consider the ethical implications of the financial decisions and their impact on stakeholders, including employees, shareholders, and the community.

You are required to use the template format provided.