Financial Management Questionnaire Assignment Essay
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Financial Management Questionnaire Assignment Essay
Prior to the COVID-19 Pandemic, Wallflower Merchandise Ltd was experiencing an upswing in the demand for their newly launched product. Even though they have closed down operations due to the pandemic, they want to be ready to start up operations again once it is safe to do so.
They have asked you to do an analysis based on the last 3 months of operations before they shut down:Wallflower Merchandise LtdIncome StatementsFor the 3 months ended March 31, 2020JanFebMarSales in Units2,0002,2502,500Sales$ 200,000$ 225,000$ 250,000Cost of Goods Sold$ 120,000$ 135,000$ 150,000Gross Margin$ 80,000$ 90,000$ 100,000Selling and Admin Expenses:Rent Expense$ 10,000$ 10,000$ 10,000Shipping Expenses$ 10,000$ 11,000$ 12,000Salaries and Commissions$ 27,000$ 30,000$ 33,000Consulting Expense$ 4,000$ 4,000$ 4,000Promotional Expense$ 8,000$ 8,000$ 8,000Total Selling and Admin Expenses$ 59,000$ 63,000$ 67,000Net Operating Income$ 21,000$ 27,000$ 33,000
Required:
Identify each of the company’s expenses as either variable, fixed or mixed. (3 marks)
For the mixed expenses, state the cost formula, while showing all of your work. (4 marks)
While the company is shut down for COVID, what is the minimum value for the total monthly expenses that they will incur? (1 mark)
Friedman Inc. is developing a plan to finance its asset base. The firm has $3,750,000 in current assets, of which 20% are permanent, and $9,000,000 in capital assets. Long-term rates are currently 9.0%%, while short-term rates are at 6.0%%. Friedman’s tax rate is 20%.
Required:
a) Construct a conservative financing plan with 75% of assets financed by long-term sources. If Friedman’s earnings before interest and taxes are $4,500,000, what will their earnings after tax be? Round to the nearest dollar. (3 marks)An alternative and more aggressive plan would be to finance 55% of total assets with long-term financing. Assuming that EBIT was again $4,500,000, what will net income be under this alternative? Round to the nearest dollar. (3 marks)
Which plan (conservative or aggressive) is riskier? Explain. (2 marks)
The Sunset Corporation manufactures 10,000 units of Part 2461. At this level of activity, the cost per unit is as follows:Direct materials14.4Direct labour21Variable manufacturing overhead9.6Fixed manufacturing overhead25Total cost per part70
An outside supplier has offered to sell them 10,000 units of Part 2461 each year for $54 per unit. If Sunset Corporation accepts this offer, the facilities now being used to manufacture Part 2461 could be rented to another company at an annual rental of $150,000. However, Sunset Company has determined that $15 of the fixed manufacturing overhead being applied to Part 2461 would not go away even if the part was purchased from the outside supplier.
Required:
To assist the manager in making a decision, prepare an analysis showing the total cost of each alternative. Recommend if Sunset Corporation should accept the outside supplier’s offer. Show all of your work (10 marks)
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!!