Financial Decision Making Models - Essay Sample

Paper Type:  Essay
Pages:  3
Wordcount:  634 Words
Date:  2022-11-30


I believe that financial decision making to a company is the determinant to the prosperity of the business. Towards DQ1 the spectrum uses three statement model to deduce data and make a decision the models include cash flow, balance sheet, and income statement. Alongside support from scholarly work, I think the company is using the best dimensions to a budgetary decision since the company can get the current data through cash flow and compare with a record from income statements (Gitman, 2003). I agree with the facts that excel functions helps a lot in calculating the weighted average cost for the business. However, there are still many benefits that a company can get from excel in matters of analyzing data through graphs and charts. Such financial analysis is common uses in health sectors in forecasting the future trend. I believe there is still much concern on data accuracy, practical decision making in the health sectors depends on the interpretation and accuracy of data (Loewenthal et al., 2015). There are software programs that make data presentation and analysis ease to enable budgetary decision like SPSS.

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The budgetary decision models used in DQ2 about the Amazon business seem to have fewer errors in the planning process. I agree with DQ2 that short term and a long term financial approach is necessary for e-commerce firm like Amazon. Further, maximizing shareholder wealth is a brilliant strategy to achieve consistency and encourage shareholder to work on the vision of the firm (Hertina & Hidayat, 2019). Still on the discussion the capital planning strategy as used by the company is a critical area in the economic model. The economic model will help Amazon determine tax deduction, gain, interest, and investments. Capital planning is managerial strategy and more of leadership that shows commitments, alignment, and direction of the business to the society and the law enforcers. I believe that Jeff Bezos is a focused customer manager; he uses quarterly income statement in business for shareholders and separation of short and long term to maximize profit. I still believe that when income is maximized customers enjoy price discounts.

DQ3 also provides the three model of budgetary strategy to make a decision that includes income, cash flow, and balance sheet of Amazon Inc. I believe that Amazon can tell the negative and positive status through the balance sheet. However, there is still extra interest in providing the particular financial position to get the information about the creditor, investments and enable the analysis to give the final report (Hertina & Hidayat, 2019). I believe much need to do on the income statement to separate the short term and long-term liabilities and assets. For instance, in the year ended Dec 31, 2016, another long term excluding current status recorded 7694 while on Dec 31, 2017, 24743(" Inc. (AMZN) | Liabilities and Stockholders' Equity," 2019). Such data formulation helps Jeff Bezos distinguishes every entity in the business and through that comparison Amazon can generate data. I believe the statement from DQ34 that in the cash flow includes the expenses incurred by the company. That approach fundamentally shows the main difference between the cash status at initial accounting period and the cash status at the end of the financial year.


West, M., Armit, K., Loewenthal, L., Eckert, R., West, T., & Lee, A. (2015). Leadership and leadership development in healthcare: the evidence base. London: The Kings Fund.

Hertina, D., & Hidayat, M. B. H. (2019). Financial Performace and Systemic Risk Effect On Stock Return (Case Study on Oil and Gas Companies Listed In IDX Year 2011-2016). Perisai: Islamic Banking and Finance Journal, 2(2), 87-100. Inc. (AMZN) | Liabilities and Stockholders' Equity. (2019). Retrieved from

Gitman, L. J. (2003). Principles of managerial finance. Upper Saddle River, N.J.: Pearson Education Inc. Retrieved from

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