an essay in which you provide the descriptions and examples outlined
below. Content, concept application, and writing quality will impact your
grade. Your essay should be 2-3 pages in length. You are not required to follow
any strict professional writing format, but you must use complete sentences,
proper punctuation, and cite the work of others used in your work. You must
submit your essay via the appropriate Assignments Folder in D2L.
You will create this assignment following the Assignment Detail instructions below.
Review the tutorial How to Submit an Individual Project.
The corporation you work for has asked for a summary and report of the future projections for the next 5 years. With the help of your CFO, you have put together the following preliminary budget figures based on last year’s numbers for a planned production and sales level of 4,000 units per year:
Other expenses that seem to vary based on production levels
Other expenses that don’t seem to vary
Selling price per unit
This category is difficult to analyze; a part of it is related to the building’s heat and light, whereas a part of it is used in the manufacturing process itself. You have the following data to which you will apply the high–low method:
When there is no production, utility costs are $20,000/month
When production levels reached 4,000 units/month, utility costs totaled $40,000/month
You are planning for the future and working on a report based on data from last year’s actual performance. You are going to calculate various figures, including the contribution margin per unit, contribution margin ratio, breakeven level in dollars, and breakeven level in units to answer some important questions regarding your data.
Using only the data from last year’s actual performance, create an Excel report that answers the questions below, showing all calculations. After completing your Excel computations, in Microsoft Word, write a professional memo to the executive committee analyzing the calculations from your report. Within the memo, give your opinion based upon the numbers as to whether production seems to be budgeted properly, and whether the corporation can make an adequate profit above breakeven levels. Please explain your rationale, and include answers to the following:
Which of these 8 cost categories would be considered variable, and which fixed? Explain why.
Which costs would be considered mixed (e.g., semi-variable or semi-fixed)?
Ignoring utility costs altogether, compute the contribution margin per unit, in dollars and in percentage, and the breakeven level of sales.
Ignoring utility costs altogether, if instead of breaking even, the firm wants to make $10,000/month profit, answer the following:
How many units must be sold each month?
To how many sales dollars is this unit volume equivalent?
In year 2, the CEO plans to add $300,000/yr. expenses in added administrative salaried headcount. Ignoring utility costs altogether, how many additional units must be sold just to pay for this added expense?
Show ALL calculations.
Financial statement fraud includes the falsifying of balance sheets, income statements, and cash flow statements. False financial statements are one of the many varieties of accounting fraud. They can involve multiple crimes, including securities fraud and perjury.
Discuss the common tools used in committing this type of fraud. Think about the warning signs of fraud.
Electrix, Inc. is an electric car manufacturer that is in the third round of production for new, state-of-the-art electric sport utility vehicle (SUV). The accounting department is fairly diverse, and you specifically work in the budgeting and projection area of new products. Due to many changes in the way sales projections are communicated within the corporation, the CFO has asked your team to conduct a cost-volume-profit analysis for the new electric SUV that will hit the market in the upcoming year. Completing multiple sales projections can yield various outcomes.
Select 1 strategy to use to complete a cost-volume-profit analysis, and provide your reasons for the choice.
Below is the “totals” section of XYZ Corporation’s full ageing schedule. XYZ will be using this information to estimate uncollectible accounts receivable at year-end
Number of Days Outstanding
Total 0-30 31-60 61-90 91-120 Over 120
Accounts receivable $ 375,000 $ 220,000 $ 90,000 $ 30,000 $ 20,000 $ 15,000
% uncollectible 1% 4% 5% 9% 20%
Estimate bad debts
Calculate the total estimated bad debts based on the above information.
Prepare the year-end adjusting journal entry to record the bad debts using the allowance method and the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $3,000 credit.
Prepare the year-end adjusting journal entry to record the bad debts using the allowance method and the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $500 debit.
Of the above accounts, $1,800 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible accounts
The company subsequently collects $700 on a specific account that had previously been determined to be uncollectible in (d). Prepare the journal entry(ies) necessary to restore the account and record the cash collection.
In your own words, explain how establishing an allowance account satisfies the expense recognition principle.
As part of your homework/participation grade over the next eight weeks, you are required to post a minimum of a current international accounting article.
Current Article means it must be dated within the last six months.
Topic: You need to explain how the article relates to International Accounting
Resource: Your source must be cited.