Management Accounting
Management Accounting
6th Edition
ISBN: 9780137024971
Author: Robert S. Kaplan, Anthony A. Atk...
Publisher: Pearson College Div
Question
Chapter 10, Problem 78C

(a)

To determine

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.

(b)

To determine

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)

To determine

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)

To determine

Explain where there is a criterion other than profitability used to evaluate the desirability of the changes occurred in part b and c.

Blurred answer

Chapter 10 Solutions

Management Accounting

Knowledge Booster
Recommended textbooks for you
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
  • Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
    Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education