question - the 4 below passage require analysis and breakdown .

1. The first documents I would look at are the cash flow statements, the quick ratio and the balance sheet. It is important that a company shows cash flow and that they are moving cash and have a positive flow and inventory turnover. The other thing that I would look at in the balance sheet is the income to debt ratio. This is important because if a company does not have debt, they probably have the opportunity to obtain some funding, but if their debt to income ratio is not favorable they may not be able to obtain other assets. free cash flow (FCF) is essentially revenue minus both the cost of goods sold and operating costs plus dollars spent maintaining or investing in assets. It represents the cash a firm has generated for its shareholders after paying its expenses and investing in its growth."(n.d.)

2. A financial manager could look at the business financial statements to determine whether his company is successful or in distress. A financial statement is a good start as it could provide a lot of information on how the money is being used and where the red flags are. The financial manager needs to review the cash flow, as it should have the cash flow exceed the cash payments that the company needs to make, and it would have a positive impact on the company (McClure, 2019). If the opposite happens and it stays negative for an extended period of time, it is a red flag that the company needs to make some changes to cover bills and other obligations. The debt-to-equity ratio can also provide feedback on a companys debt risk and can affect shareholder investments (McClure, 2019). Amazon seems to be thriving in success and is even thinking of expanding their warehouses for even faster delivery services.

3. A companys value is made up by calculating its present value for expected future cash flows. This means that cash flow is a very important part of whether a accompany will be successful or not. if a company does not have enough money to cover its sort term bills and responsibilities it would be considered in distress. As we read in earlier chapters a financial manager can use one of several financial ratios to help diagnose the status of a company. There can be many different reasons for a company to be in distress however. Some of these reasons for a company to become distressed may be general economic conditions, industry trends, shift in consumer taste or unexpected increases to interest rates. Another issue is obsolete technology as is the case with Netflix and Blockbuster and Blockbuster was put out of business because they could not respond to the technology of the day.

4. The Finance portion of the MBA program showed me that their is a way to look at eh value of each piece of the infrastructure and assets in a business. Everything in life has some value and it is important to understand what that value is so you do not underestimate or overestimate the value and get taken in a deal. The important thing is not to remember every detail of every formulas, but that there is a way to find that value if you need to. Then you can go and find it and do the valuation and make a decision.