business report advising Kitchen King

Write a business report advising Kitchen King which of these two companies they should invest in. Your group’s report should be addressed to Tony Minnesota, the CEO of Kitchen King.

Assume you are working for a Melbourne based accounting/consultancy firm. Your firm has been approached by Kitchen King who is looking at expanding into Victoria through buying an existing business. Kitchen King have identified two small proprietary companies that manufacture and install kitchens and bathrooms and have contacted your firm to produce a report on which of these two companies they should invest in from a financial perspective. As they are seeking an unbiased opinion, they have removed all identification from the information they have provided you with, addressing the companies simply as Company Alpha and Company Beta. Due to the different strategies Companies Alpha and Beta have adopted, Kitchen King believes it is unable to buy both businesses. As this is a stepping stone into Victoria they believe buying both businesses would split their attention, thus making this venture more likely to fail. Kitchen King is concerned that any increase in interest rates will reduce demand for both upgrading of existing kitchens/bathrooms and demand for new housing. Kitchen King is seeking the best value for money (for the asking price of $6 million), highest potential for future profits if interest rates increase and recommendations for improvement.\nThey have provided you with the balance sheet and income statement for each company for the last five years and a summary of key accounting policies.\n\nThe main body of the report is to have the following subsections:\n1) Introduction\no Covering who the report is for, what it is for, and why it is being produced\n2) Findings and discussion o See below\n3) Conclusion\no A summary of your report findings\n4) Recommendations\no Which company should Kitchen King buy\no What could Kitchen King do to improve the performance of each company o Recommendations flow from, and are supported by, the body of the report.\n\nI have done part 2 and 3 (finding and discussions and the conclusion(which i will attach) all you have to do is to write an introduction for this report and the recommendation based on the \’findings and discussions\’