Focus of the Final Paper Essay

Focus of the Final reportYouve just been engage onto first principle high society as the corporate controller. alphabet companion is a manufacturing firm that specializes in making cedar roofing and siding shingles. The political party oc up-to-dately has annual sales of around $1.2 million, a 25% add from the previous year. The company has an aggressive growth target of reaching $3 million annual sales within the next 3 years. The chief operating officer has been trying to find supererogatory harvest-tides that can leverage the current ABC employee skillset as well as the manufacturing facilities.As the controller of ABC troupe, the chief operating officer has come to you with a new opportunity that hes been on the job(p) on. The CEO would like to use the most of the shingle scrap materials to ready cedar dollhouses. While this new product none would add additional raw materials and be more time-intensive to manufacture than the cedar shingles, this new product line lead be able to leverage ABCs existing manufacturing facilities as well as the current staff. Although this product line will require added expenses, it will provide additional revenue and uncouth profit to alleviate reach the growth targets. The CEO is relying on you to help decide how this project can be afforded Provide details somewhat the estimated product make ups, what is posited to break even on the project, and what level of sideboard this product is expected to provide.In order to help out the CEO, you bring to prepare a six- to eight-page report that will contain the following training (including exhibits, but excluding your references and statute title page). Refer to the accompanying Excel spreadsheet (available through your online course) for some specific cost and profit information to complete the calculations.Final Paper SpreadsheetI. An overall risk profile of the company based on current economic and industry issues that it may be facing.II. Current comp any bullion hunta. You need to complete a cash be given description for the company using the direct method. b. Once youve completed the cash flow statement, answer the following questionsi. What does this statement of cash flow tell you active 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 not? iv. If the company needs additional financing beyond what ABC Company can provide internally (either now or sometime throughout the life of the project), how would you suggest the company obtain the additional financing, equity or corporate debt, and why?III. Product 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 the fixed factory overhead, and units sell to allocate the fixed sales expenses. Bases on current research, ABC Company expects that it will take twice as long to produce the enlargement product as it currently takes to produce its existing product.a. What is the product cost for the expansion product under absorption and variable costing? b. By adding this new expansion product, it helps to absorb the fixed factory and sales expenses. How more cheaper does this expansion make the existing product? c. anticipate ABC Company wants a 40% gross margin for the new product, what selling cost should it set for the expansion product? d. Assuming the same sales liquify of these two products, what are the contribution margins and break-even points by product?IV. Potential investments to further 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 be over the next quintet yearsYear 1, $15,000Year 2, $13,000Year 3, $10,000Year 4, $10,000Year 5, $6,000ABC Compan y uses the net-present-value method to analyze investments and desires a minimum rate of harvest-festival 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 impact 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 exhort that ABC Company purchases the equipment? Why or why not?V. final resulta. 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 exhort the CEO do?Writing the Final Paper1. Must be six to eight double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center. 2. Must include a title page with the followinga. Title of p aperb. Students evokec. Course name and numberd. Instructors namee. discover submitted