Tishay L FINA310 Unit 1 IP

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American InterContinental University *

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310

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Finance

Date

Feb 20, 2024

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Uploaded by ChefJellyfishMaster4675

1 Tishay Lawrence FINA310 Instructor: J Bruce Parker Date: December 1, 2023

1 Introduction In any kind of organization, the financial manager's position is unquestionably vital. Financial managers oversee monitoring a company's financial stability and well-being and making strategic choices to guarantee its long-term success. I came across a job posting for a financial manager position on Indeed.com to learn more about this position. A respectable multinational company posted a job opening looking for an experienced financial manager to join their team. The posting's list of duties stressed how crucial financial planning, budgeting, and forecasting are. The chosen applicant would be expected to evaluate financial information, spot patterns and prospects, and advise upper management. The job description also emphasized the financial manager's need for strong leadership abilities because it called for managing and coaching a group of finance specialists. This proves that strong interpersonal and communication skills are just as important as technical knowledge. Provide the job posting information, such as, company name and job title. Financial Task Manager Sanford Federal, Inc. 17 reviews 2415 Eisenhower Av, Alexandria, VA 22314 Full-time

1 What are the main responsibilities and the day-to-day responsibilities of the financial manager? What are the soft skills required for this position? Financial managers engage in a variety of tasks on a daily basis, including cash flow management, forecasting, and budgeting. They keep an eye on revenues and costs to make sure the business stays within its financial constraints. They also evaluate investment prospects and provide senior management with recommendations on possible risks and rewards. Soft skills, in addition to technical abilities like knowledge of accounting and finance, are essential for this role. Financial managers must clearly communicate complex financial information to non-financial stakeholders, so effective communication is crucial. Along with having strong analytical abilities, they must be able to accurately interpret data and make decisions. Furthermore, because financial managers frequently face difficulties with cost control or cash flow management, problem-solving abilities are essential. If they are to effectively address these problems, they must exercise critical thought and create novel solutions. Finally, since financial managers frequently oversee teams that are in charge of numerous finance-related tasks, they

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1 must possess strong leadership abilities. They must be able to inspire their group members, assign work effectively, and offer direction when required. Describe the main sources of revenue and major expenses you would find on the income statement related to the company seeking the financial manager? Sanford Federal is a well-known business that has spent more than ten years providing professional services, infrastructure, information technology solutions, and construction to the US government. Knowing the primary revenue sources and significant expenses that appear on the income statement is essential as the company looks to hire a financial manager. Contracts with both public and private clients would be Sanford Federal's main source of income. Project fees and service charges are the sources of revenue for these contracts. The business might also make money through licensing deals or consulting services pertaining to its IT solutions. On the other hand, direct costs related to infrastructure development or construction projects would be major expenses on Sanford Federal's income statement. Subcontractor fees, equipment rentals, labor wages, and materials may all be included in this. Professional services costs may result from the need for accounting services or legal counsel on behalf of the business. Moreover, costs for software licensing or research and development may be incurred by Sanford Federal's information technology solutions division. Marketing expenditures to advertise their

1 services or general administrative costs, such as employee salaries who are not directly involved in project execution, could be additional noteworthy expenses. What obstacles may the financial manager face in the near future related to revenue generation and expense obligations for this type of company? The financial manager may face several challenges, one of which is the variable nature of government contracts. Uncertainties in revenue generation may arise due to the government's shifting priorities and budgetary restrictions. Because of this, the financial manager may find it challenging to project future cash flows and budget. Furthermore, Sanford Federal works in fiercely competitive sectors where innovations in technology are always taking place. The business must make research and development investments and provide its employees with new controlled; revenue generation may be impacted. For businesses such as Sanford Federal, adherence to government regulations is essential. Penalties or possibly contract termination may follow noncompliance with these regulations. The financial manager is responsible for both efficiently managing expenses and making sure that all required compliance measures are followed. Finally, recessions and downturns in the economy can have a big effect on how much money businesses in the infrastructure and construction sectors make. In these circumstances, a drop in government spending may result in fewer contract opportunities and a delay in payments.

1 Describe two financial ratios likely to be utilized by the financial manager to analyze the company's strengths and weaknesses. Financial ratios are crucial tools for financial managers to assess a company's strengths and weaknesses. In the case of Sanford Federal Inc., two key ratios that would likely be utilized are the current ratio and the debt-to-equity ratio. The current ratio measures a company's ability to meet its short-term obligations. It is calculated by dividing current assets by current liabilities. A high current ratio indicates that Sanford Federal Inc. has enough liquid assets to cover its short- term debts, which suggests financial strength. Conversely, a low current ratio may indicate potential liquidity issues or an inefficient use of resources. Another important ratio is the debt-to-equity ratio, which evaluates a company's leverage position and risk exposure. It is calculated by dividing total debt by shareholders' equity. A low debt-to-equity ratio implies that Sanford Federal Inc. relies less on borrowed funds and has a stronger financial position. On the other hand, a high debt-to-equity ratio may suggest excessive reliance on debt financing, potentially increasing financial risk. By analyzing these ratios, Sanford Federal Inc.'s financial manager can gain insights into the company's strengths and weaknesses. For instance, if both ratios are favorable compared to industry benchmarks or historical data, it indicates strong financial health and stability for the company. However, if either or both ratios fall below acceptable levels, it could signify areas of concern such as liquidity problems or excessive debt burden.

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1 Conclusion: In summary, the success and financial stability of Sanford Federal, Inc. depend greatly on the work done by their financial managers. Strong analytical and problem-solving abilities are also necessary for this role, as well as a thorough understanding of financial concepts and procedures. At Sanford Federal, Inc., the financial manager is in charge of managing the budget, forecasting, and financial reporting, among other financial aspects of the business. To optimize profitability, they must also make calculated choices about capital allocation and investments. Effective communication abilities s is also necessary for this position in order to work with other organizational departments as well as outside stakeholders like auditors and investors. The financial manager needs to be able to communicate intricate financial details in a way that non- financial experts can understand. To maintain compliance and reduce risks, the financial manager also needs to keep abreast of changes in regulations and industry trends. To be honest in their decision-making, they need to have high moral standards.

1 References: Knight, D. (2022). Principles of Finance. OpenStax. https://aiu.vitalsource.com/books/9781951693541 Financial Task Manager - Alexandria, VA 22314 - Indeed.com