Discussion reply | ACCT 370 – Financial Statement Analysis | Liberty University

 Post a substantiative reply to the below post. The reply must include two references and be a minimum of 250 words.


Projecting Financial Statements

            There are so many factors that make a business: its CEOs, economy, competition, trust, employees, customers and their financial positions, political policies, depreciating assets, pandemics, increased revenues, accounts payable, etc.. When we rang in the new year January 2020, the world, and its businesses, had no idea what hardships, trials, and sacrifices they were about to go through. March 2020 American citizens were being told of this “global pandemic” and were instructed that a stay-at-home order was in effect.  Schools, businesses, restaurants, and workplaces were forced to shut down for “two weeks.”  That is until COVID-19 took off in America. Auerback and Gale note that “COVID-19 has created significant changes in almost all aspects of the economy” (Auerbach & Gale, 2020, para. 1).   Businesses were struggling to pay for rent and utilities as they were forced to shut down, turning to new methods of sales and being creative: online sales, pick up orders, take out, etc.. No one could have predicted COVID-19’s effect on business and their future financial position.

            Public policy and political unrest greatly affect the future positions of business that reside, partner, and trade with that nation.  Oftentimes governments utilize public policies to aid other nations as some policies “offer institutional support to cross-border E-business are processed in the development of export at emerging markets” (Huo et al., 2018, para., 1).  Author Huo argues that public policy can be very beneficial to both parties “innovative institutional support that delivers a flexible regulatory policy can be helpful to companies involved in export trade” (Huo et al., 2018, para., 7).  

            Finally, competitors will continue to affect the future of other businesses unless there is a monopoly, and “there is a single supplier of a good and no feasible way for competitors to enter the market” (Resvine et al., 2020, p. 8-23).  The impact of competition is ever changing and business leaders must constantly be studying ways to gain a competitive advantage in our quick economy.  There is no doubt that “product recalls hurt the recalling firm’s market value” but it has been studied that “the negative spillover effect is buffered or attenuated by the corporate product reliability of the competitor” (Liu & Varki, 2021, para. 1).  Simply put,  “the negative spillover effect of a recall on a competitor’s market value can be detected even when the competitor makes a positive announcement in the form of a new product pre-announcement (NPPA) after a recall in the industry” (Liu & Varki, 2021, para.1).  This is just one of the many reasons why businesses need to constantly be up-to-date on recent trends, recalls, economic change, etc..  

            There are so many factors that influence a company’s financial statement in the next three years.  Some influences can be predicted, like the influence of corporate social responsibility and depreciating assets, and others cannot, like an unforeseen global pandemic.  As businesses we can do our best to predict the future state of our businesses, but we must remember who is in ultimate control.  Proverbs says “many are the plans in a person’s heart, but it is the Lord’s purpose that prevails” (New International Version, Proverbs 19:21).  Let us remember that God is in ultimate control, therefore, may everything that we do be for the glory of God.


Auerbach, A. J., & Gale, W. G. (2020). The effects of the COVID-19 pandemic on the Federal Budget Outlook. SSRN Electronic Journal.

           https://doi.org/10.2139/ssrn.3728247. https://go-gale-com.ezproxy.liberty.edu/ps/i.do p=BIC&u=vic_liberty&id=GALE%7CA649838694&               v=2.1&it=r&sid=summon.  

Hodder & Stoughton Ltd. (2007). NIV Bible. 

Huo, D., Ouyang, R., Hung, K., & Sun, B. (2018). Effect of cross-border e-business policy on the export trade of an emerging market: A dynamic     

            study of institutional support to cross-border e-business at Chinese pilot cities. Emerging Markets Finance and Trade, 54(14), 3153–3167.       

             https://doi.org/10.1080/1540496x.2017.1303375. https://www-tandfonline com.ezproxy.liberty.edu/doi/full/10.1080/1540496X.


Liu, D., & Varki, S. (2021). The spillover effect of product recalls on competitors’ market value: The role of Corporate Product Reliability. Journal of

            Business Research, 137, 452–463. https://doi.org/10.1016/j.jbusres.2021.08.047. https://www-sciencedirect-com.ezproxy.liberty.edu


Resvine, L., Collins, D.W., Johnson, W.B., Mittelstaedt, H.F., & Soffer, L.C.  (2020).  Financial reporting and analysis (8th ed.). New York, NY: McGraw-


Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more