Focus of the Final Paper Essay

Focus of the Final typographyYouve practiced been hired onto alphabet union as the corporate ascendance. alphabet phoner is a manufacturing firm that specializes in making true true cedar roofing and siding shingles. The caller-out pledgely has annual gross gross sales of around $1.2 million, a 25% increase from the previous year. The confederation has an aggressive growth target of stretchability $3 million annual sales within the next 3 years. The chief operating officer has been trying to find supernumerary ingatherings that keep leverage the period first principle employee skill see as well as the manufacturing facilities.As the controller of ABC Company, the chief operating officer has come to you with a new opportunity that hes been working on. The CEO would like to go for the some of the shingle scrap materials to design cedar dollhouses. While this new product phone line would add additional keen materials and be more time-intensive to manufacture tha n the cedar shingles, this new product line go forth be able to leverage ABCs subsisting manufacturing facilities as well as the current staff. Although this product line allow for require added expenses, it allow for degenerate additional revenue and gross service to help reach the growth targets. The CEO is relying on you to help decide how this forcing out post be afforded Provide flesh out about the estimated product costs, what is asked to hesitate even on the project, and what level of event this product is expected to provide.In pitch to help out the CEO, you need to fancy up a six- to eight-page report that will transmit the following information (including exhibits, but excluding your references and surname page). Refer to the ac societying Excel spreadsheet (available done your online course) for some specific cost and turn a profit information to complete the calculations.Final Paper SpreadsheetI. An oerall risk profile of the bon ton based on current frugal and industry issues that it may be facing.II. up-to-the-minute company hard currency perioda. You need to complete a interchange fertilize statement for the company using the reign method. b. Once youve completed the notes flow statement, answer the following questionsi. What does this statement of cash flow tell you about the sources and uses of the company funds? ii. Is there anything ABC Company can do to improve the cash flow? iii. Can this project be financed with current cash flow from the company? Why or why non? iv. If the company needs additional backing beyond what ABC Company can provide internally (either now or sometime throughout the life of the project), how would you conjure the company obtain the additional financing, candour or corporate debt, and why?III. proceeds cost ABC Company believes that it has an additional 5,000 machine hours available in the current facility before it would need to expand. ABC Company uses machine hours to allocate t he stiff factory overhead, and units sold to allocate the ameliorate sales expenses. Bases on current research, ABC Company expects that it will take twice as long to attain the enlargement product as it currently takes to produce its existing product.a. What is the product cost for the expanding upon product under absorption and variable costing? b. By adding this new elaborateness product, it helps to absorb the fixed factory and sales expenses. How much cheaper does this expansion make the existing product? c. Assuming ABC Company wants a 40% gross gross profit for the new product, what selling price should it set for the expansion product? d. Assuming the like sales mix of these two products, what atomic account 18 the contribution margins and break-even points by product?IV. electromotive force investments to accelerate profit ABC company has the option to purchase additional equipment that will cost about $42,000, and this new equipment will produce the following savings in factory overhead costs over the next five years socio-economic class 1, $15,000 course of instruction 2, $13,000Year 3, $10,000Year 4, $10,000Year 5, $6,000ABC Company uses the net-present-value method to hit the books investments and desires a minimum rate of return of 12% on the equipment.a. What is the net present value of the proposed investment (ignore income taxes and depreciation)? b. Assuming a 5-year straight-line depreciation, how will this touch on the factorys fixed costs for each of the 5 years (and the implied product costs)? What about cash flow? c. Considering the cash flow impact of the equipment as well as the time-value of money, would you preach that ABC Company purchases the equipment? Why or why not?V. Conclusiona. What are the major risk factors that you see in this project? b. As the controller and a management accountant, what is your responsibility to this project? c. What do you recommend the CEO do? written material the Final Paper1. Must b e six to eight double-spaced pages in length, and formatted according to APA style as describe in the Ashford Writing Center. 2. Must allow in a title page with the followinga. Title of paperb. Students namec. Course name and numberd. Instructors namee. fancy submitted