(a)
Prepare a sales
(b)
Prepare a sales forecast, staffing plan, production plan, and estimated cash flow statement, pro forma income statement for the year ended December 31, 2012 and prepare the pro forma balance sheet at December 31, 2012 (if total sales to exporters in 2012 fall by 5%. Determine whether it is desirable if these changes occur.
(c)
Prepare a sales forecast, staffing plan, production plan, and estimated cash flow statement, pro forma income statement for the year ended December 31, 2012 and prepare the pro forma balance sheet at December 31, 2012 (if advertising budget increases from $600,000 to $900,00 and cutting prices by 5% and it will lead to increase in sales by 30% in 2012). Determine whether it is desirable if these changes occur.
(d)
Explain where there is a criterion other than profitability used to evaluate the desirability of the changes occurred in part b and c.
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Chapter 10 Solutions
Management Accounting
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