The CFO is involved in all record keeping transactions for the business and advising the CEO about the current financial health of the business and the forecasts of future profits. The CFO should understand how to value the business, the importance of raising capital (i.e. acquiring cash flows from external parties), and be able to assess whether transactions with external parties would be beneficial or harmful to the business.

What needs to be done/established?

Course of Business:

Wahoo! Has a premier online search engine for customers browsing the internet. The company makes revenues by selling advertisements on its web pages and key search results.

Forecasted Revenues:

Tomorrow, Wahoo! Will be signing contracts with customers totaling $47,000 that are set to earn the company revenues of $35,000 in fiscal year 2021. On those revenues, the company's expected to earn $12,000 in net income and $13,000 in operating cash flows.

Current Business Outlook:

Wahoo! Operates in a highly competitive industry and so the board of directors' primary focus is on increasing the use base, which can in turn allow the company to charger higher revenues for each advertisement on its websites.

Current Balance Sheet:

Assets	Liabilities
Cash	$10,000	Accounts Payable	$1,000
Accounts Receivable	$1,000	Owners Equity
		Capital Stock	$10,000
Total Assets	$11,000	Total L & OE	$11,000

Presented journal entries, balance sheet information, and future financial expectations for the strategic decision

Journal Entries needed for this decision

Description of how this impacts the company's Accounting Equation

Adjusted Balance Sheet

Strategic Decision #2

2. Assume Liability -Take out a $50,000 loan from potential creditor B with $50,000 due in 4 years and $2,000 in interest payments due each year until the loan is fully paid.

The CFO should prepare all journal entries necessary to record the strategic decisions of the business and describe how this transaction impacts the company's Accounting Equation. The CFO should then prepare an adjusted Balance Sheet for the company immediately following the transaction as well as a year over year trend for future revenues and net incomes for the following two years (be sure to include why).