Please Respond if you can answer in 6-7 hours

Respond to three articles with 150 words each- Include reference for each Response.

1. Respond to 1st article with 150 words.

Kengatharan, L. (2016). Capital budgeting theory and practice: a review and agenda for future research. Applied Economics and Finance, 3(2), 15-38.

The author focuses on the capital budgeting for the survival of small companies during the financial crisis. Most of cooperating practitioners in India follow capital budgeting proposed by academic theories. Indian companies witness slow growth during the crises because of poor budgeting, due to this, there is a slow investment from other parties. The economic slowdown has destructed the growth of such companies making them receive little profits and increasing their debts.

Graham, P. J., &Sathye, M. (2017). Does national culture impact capital budgeting systems?. Australasian Accounting, Business and Finance Journal, 11(2), 43-60.

The author has tried to establish a link between national culture and capital budgeting systems. He tries to find and explain how the two have impacted on the growth of firms in Indonesia and Australia, and the perception of managers regarding various capital budgeting systems used to make decisions of investments. The author tries to explore organizational selections when it comes to capital budgeting systems.

Vogel, H. L. (2016). Travel industry economics: A guide for financial analysis. Springer.

In this article, the author has tried to explain the economic factors that affect the travel industry and tourism business. He has provided the framework of how the travel industry fits into the larger economy and the financial aspects that project investment in such industry.

Vogel, H. L. (2020). Entertainment industry economics: A guide for financial analysis. Cambridge University Press.

The article explains the economic factors that drive the entertainment industry in the USA and globally. The author explains financial factors that drive the entertainment industry, how to make profits, and the risks involved in this line of business. He uses the approach that helps other analysts understand how adjacent sectors operate.

Conclusion

The articles help to understand the need to select useful projects that add value to a company and how to capitalize expenditure on the most useful assets for the company. Understanding cash flow analysis helps evaluate the amount of cash at the beginning and end of the accounting period and enables the projection of future cash flow. A manager can use the two concepts to monitor the sequence of cash flow, the amount of profit the firm is making, and choose the most suitable projects to invest in. This will help prevent investing and buying unnecessary equipment the company does not require.

1. Respond to 2nd article with 150 words .

Capital Budgeting

1. Michelon, P. S., Lunkes, R. J., & Bornia, A. C. (2020). Capital budgeting: a systematic review of the literature. Production, 30, e20190020. https://doi.org/10.1590/0103-6513.20190020.

The researchers of the article above utilize information from several scholarly articles to inform the issue of capital budgeting. The move validates the processes that capital budgeting employs in its quest to guide an organization in making decisions. Also, a review of the concept of capital budgeting and methodologies makes the article informative to organizations. I have learned that decision making is a subject of human resource availability, schedule, and experience from handling capital expenditures. Hence, the research above gives some ways beneficial to the organization regarding capital budgeting. As such, managers can utilize these procedures and techniques in the process of making decisions.

2. Bradshaw, D. (2018, August 28). Justifying investments with the capital budgeting process. Retrieved from https://www.toptal.com/finance/budgeting/capital-budgeting-process

The author of the article utilizes data to present his argument concerning capital budgeting. His analysis is based on time value equated to money. Data back every step proposed by the author regarding capital budgeting. As such, the procedures recommended are critical to the analysis of the concerned topic. I have learned that capital budgeting is necessary for all investments. For example, purchasing capital equipment, expanding operations, and starting new businesses. This calls for accuracy regarding the budgeting process. Thus, managers should incorporate accurate budgeting before making any investments. This would reduce the amount of risk of errors regarding capital budgeting.

Financial Analysis

1. Verma, E. (2020, March 5). Financial performance - Understanding its concepts and importance. Retrieved from https://www.simplilearn.com/financial-performance-rar21-article

The author presents various perspectives that financial analysis should focus on, including an organization's financial soundness and profitability. Thus, a focus on productivity and production, social performance, liquidity performance, and other aspects are critical to the undertaking financial analysis. The author points out the need to input ratios based on working capital, financial structure, activity, and profitability analysis. I have learned that financial analysis is vital to understanding the health of an organization. This feature is essential to decision making by stakeholders and investors. This information would be useful to managers since they have to understand their organizations' health before making any decision.

2. Baran, D., Pastýr, A., & Baranová, D. (2016). Financial analysis of a selected company. Research Papers Faculty of Materials Science and Technology Slovak University of Technology, 24(37), 73-92.

The authors of the article utilize information from various sources to ascertain the selected company's financial stand. Additionally, there are different methods, including analysis, hypothesis creation, deduction, induction, and synthesis. Thus, a focus on a public limited company provides adequate information to undertake the research. I have learned that companies operate in a complex market environment. Therefore, the management develops approaches to addressing the difficulties that arise in the market, which helps the organization to remain relevant and stable in the market for a long time. Managers can utilize this information obtained from the analysis of the market to monitor and make financial decisions.

519 words

1. Respond to 3rd article with 150 words

Fehrenbacher, D. D., Kaplan, S. E., & Moulang, C. (2019). The role of accountability in reducing the impact of affective reactions on capital budgeting decisions. Management Accounting Research, 100650.

The article defines the importance of capital budgeting and strategical decisions in minimizing the company impacts and risk factors. Management should define the organizational investments or capital budget is before initiating the project. A successful project always depends on proper management of capital investments on the functional operations. An autonomous decision should be generated in managing capital projects and make strong projects in business organizations. Managers should propose an effective capital budget to present the project more consistently and reliably. The author made an experiment to prove the hypothesis by assigning the tasks by initiating and choosing two capital budgets. Moreover, different managers will handle two different capital projects. In this article, one project is considered as the economic preferred comparing to another project. Accountability helps in minimizing the effects on receiving the reactions in terms of capital budgets or investments.  

Castro, N. R., & Chousa, J. P. (2016). An integrated framework for the financial analysis of sustainability. Business Strategy and the Environment, 15(5), 322–333.

The authors presented this article based on the integrated and complex frameworks in determining financial analysis. Financial analysis plays an important role in making any investments or listing the budgets in the companies. Even it is considered as the tool to assess the organizational operations management by making an effective strategical decision in managing the financial decisions.  This article uses an integrated framework to determine the financial analysis of the company and deals with management issues. It helps in improving business performance and other operational aspects. Every organization should develop a framework in managing the business decisions, strategies, and financial scenarios for effective outcomes. A business can sustain for a greater number of years if it exhibits proper management of financial concepts.

Capital budgeting increases the company growth by implementing proper structure and accomplish the business perspectives. Most companies make use of capital budgeting principles and financial concepts to enable success for a long time. Managers are responsible to look after the concepts including capital budgets and financial analysis (Whitecotton, Libby & Phillips, 2020).