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Avoid the Hustle

Review the following scenario: Acting as the CEO of a small company called Sunflower Nutraceuticals (SNC), you will apply the principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include taking on new customers, capitalizing on supplier discounts, and reducing inventory. You must understand how the income statement, balance sheet, and statement of cash flows are interconnected and be able to analyze forecasted financial information to consider possible effects of each opportunity on the firm’s financial position. The company operates on thin margins with a constrained cash position and limited available credit. You must optimize use of internal and external credit as you balance the desire for growth with the need for maintaining liquidity. Write a paper of no more than 800 words that analyzes your decisions during each phase (1-3) and how they influenced each of the following final outcomes (metrics) of SNC: Sales EBIT Net Income Free Cash Flow Total Firm Value Address the following in your paper: A summary of your decisions and why you made them How they affected SNC’s working capital What general effects are associated with limited access to financing Include scholarly references (in addition to your course textbook and simulation materials) to support your positions.

Category: Accounting

Cambridge Manufacturing Inc. uses the job order cost system of
accounting. The following information was taken from the company’s
books after all posting had been completed at the end of

Jobs Completed Direct Materials Cost Direct Labor Cost Factory Overhead Unit Completed

1040 $3,600 $4,000 $1,600 400
1065 2,380 2,500 1,000 240
1120 1,800 1,700 680 200

a. Prepare the journal entries to charge the costs of materials,
labor, and factory overhead to Work in Process.
b. Compute the total production cost of each job.
c. Prepare the journal entry to transfer the cost of jobs completed
to Finished Goods.
d. Compute the unit