1. What is the money toolbox? What does it contain?
2. Given the following Income statement, determine the organization's operating cash flow for the period. How does the operating cash flow value affect the funds available for investment?
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Income statement for year Ending 20XX
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Sales
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$4,500,000
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Cost of Goods Sold
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$3,400,000
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$1,100,000
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Expenses
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200,000
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Depreciation
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400,000
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Profit before Tax
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$500,000
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Tax
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$300,000
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Profit After Tax
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$200,000
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Dividends
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50,000
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Retained Earning
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$150,000
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3.A manufacturer purchases $10,000 of raw material. During the manufacturing of the products. $40,000 of labor and $60,000 of overhead cost are incurred.
After completion, the products are stored in the warehouse, and three weeks later one-half of the finished products are sold for $65,000.
Show the following entries in the Accounting Equation:
When the raw material is purchased
When the labor and overhead expenses are incurred
When the finished product is sold
4.Given the following departmental financial information for satellite Components Corp., setup the data manually or use spreadsheet software. Using horizontal and vertical analysis, calculate:
Scrap as a percentage of total output from the department for five month.
Productivity for each month
The percentage of direct labor to total labor costs for each month. Graph the results.
Ratio of direct labor to total units produced for the period.
What additional information would you like to have if you were the team leader of this department's cost improvement team? State any conclusions from preceding analysis?