Fi504 Finance Case Study 2

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To the president of our company, This document addresses the certain concerns when asked what the requirements are when going public in terms of our financial documents. When going public it is no task to take lightly as we will be evaluated by many more people than we have. When going public an everyday citizen to another company can invest in us. This is a great advantage for us because we will have much more revenue to invest in our research and development, products, and advertising. I have a great deal of excitement when typing this as a task like this will pay off greatly. One of those benefits will be that we have an edge over others in the market, going public shows prestige, something our competitors may not have. Although this comes with great benefits, it also is no simple task. Our finance department will see that there are more forms to fill out that investor and the IRS are able to view certain times to view our earnings, liabilities and assets and etc. What was just mentioned is not the whole part of going public, there are challenging tasks that if carried out correctly, ethically will pay off greatly for our organization in the long run. The task we are about to endure, more commonly referred to as an IPO (initial public offering), will require certain things. According to a well-known and trusted source, inc.com, the task for profit in the long run is a costly one at first, about $2 million. The internal control requirements of this undertaking include making sure we have at least three years of audited financial statements should we go public through the NYSE. If we haven't been audited, we may still have the opportunity to go public, we must make sure, though, that we prepare all of our previous three years work for auditors to view. Going public is a more enduring task than it has ever been in the past. In 2002 the Sarbanes-Oxley act was

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