Question.2562 - PART1TASK 1) (40 pts) ABC company’s Income Statements for 2017-2021 are given below: 2020 2019 2018 2017 2016 Sales Revenue $576,000 $384,000 $360,000 $240,000 $168,000 COGS (-) 316,800 192,000 144,000 132,000 117,600 Gross Profit 259,200 192,000 216,000 108,000 50,400 Operating Expenses (-) 132,480 72,960 82,800 72,000 35,280 General Admin Expenses (-) 86,400 49,920 54,000 43,200 25,200 Marketing and Sales Expenses (-) 46,080 23,040 28,800 28,800 10080 Operating Profit 126,720 119,040 133,200 36,000 15120 Interest Expense (-) 19,200 16,800 24,000 24,000 24,000 Gain on Sale of an unused building 38,400 0 14400 0 19,200 Profit Before Tax 145,920 102,240 123,600 12000 10320 Tax Expense (-) 11673.6 8179.2 9888 960 825.6 Net Profit 134,246 94,061 113,712 11040 9494.4 a) Show the index-trend percentages for each item for five years, taking 2017 as the base year. (Show supportive calculations) (15 pts) b) Indicate whether the trend for COGS and Marketing and Sales Expenses are Favorable or Unfavorable? (5 pts) c) Write your conclusion on whether the overall trend in Net Profit is Favorable or Unfavorable, explaining the reasons (Provide at least three reasons). (5 pts, min 80 w.) d) If there were 10% inflation in 2018, 5% inflation in 2019, 7% inflation in 2020, and 5% inflation in 2021, would you change your conclusion for (c)? (Support your answer by numbers and calculations) (15 pts, min 100 w.) TASK 2) (10 pts) How can one become a CPA in Kuwait? Write steps and requirements. Show the source of your information.PART 2TASK 3) (25 pts) List at least five factors that may affect the financial success of a car manufacturing company (i.e., Toyota, Nissan, Mercedes). (15 pts, min 150 w.) b) Discuss how each of those five risk factors you provided in (a) may affect the profitability of the car manufacturing business (10 pts, min 100 w.) TASK 4) (25 pts) First read business activities from Chapter 1. Discuss how financial statements reflect the results of business activities. Note: Don’t forget to refer to the balance sheet, income statement, statement of cash flows, and three business activities in your discussion. (25 pts, min 200 w.) SHOW YOUR REFERENCES THROUGH IN-TEXT CITATIONS AND PUT REFERENCES AT THE END;OTHERWISE, YOU WILL LOSE SOME POINTS.
Answer Below:
Task xxxxx We xxxx to xxxxxxxx the xxxx year xx be xxx the xxxx the xxxxx trend xxxxxxxxxxx for xxxx item xxxx be xxxxx COGS xxxxx Profit xxxxxxxxx Expenses xxxxxxx Admin xxxxxxxx Marketing xxx Sales xxxxxxxx Operating xxxxxx Interest xxxxxxx Gain xx sale xx unused xxxxxxxx Profit xxxxxx Tax xxx Expenses xxx Profit xxx the xxxx the xxxxx percentage xxxxxxxxxxx Current xxxx Amount xxxx Year xxxxxx Sales xxxx Gross xxxxxx Operating xxxxxxxx General xxxxx Expenses xxxxxxxxx and xxxxx Expenses xxxxxxxxx Profit xxxxxxxx Expense xxxx on xxxx of xxxxxx building xxxxxx before xxx Tax xxxxxxxx Net xxxxxx For xxx year xxx index xxxxxxxxxx calculation xxxxxxx year xxxxxx Base xxxx Amount xxxxx COGS xxxxx Profit xxxxxxxxx Expenses xxxxxxx Admin xxxxxxxx Marketing xxx Sales xxxxxxxx Operating xxxxxx Interest xxxxxxx Gain xx sale xx unused xxxxxxxx Profit xxxxxx Tax xxx Expenses xxx Profit xxx the xxxx the xxxxx percentage xxxxxxxxxxx Current xxxx Amount xxxx Year xxxxxx Sales xxxx Gross xxxxxx Operating xxxxxxxx General xxxxx Expenses xxxxxxxxx and xxxxx Expenses xxxxxxxxx Profit xxxxxxxx Expense xxxx on xxxx of xxxxxx building xxxxxx before xxx Tax xxxxxxxx Net xxxxxx For xxx year xxx index xxxxxxxxxx calculation xxxxxxx year xxxxxx Base xxxx Amount xxxxx COGS xxxxx Profit xxxxxxxxx Expenses xxxxxxx Admin xxxxxxxx Marketing xxx Sales xxxxxxxx Operating xxxxxx Interest xxxxxxx Gain xx sale xx unused xxxxxxxx Profit xxxxxx Tax xxx Expenses xxx Profit x The xxxxx for xxxx is xxxxxxxxxx unfavorable xxx the xxxx five xxxxx as xxx price xxx constantly xxxxxxxxxx with xxx increase xx sales xxx COGS xxx in xxxxx increased xx If xx see xxxxx of xxxxxxxxx expenses xx can xxx that xx was xxxxxxxxxxx in xxx year xxx remained xxxxxxxx in xxxx but xx showed x favorable xxxxx in xxx year xxx it xxxxx become xxxxxxxxxxx in x The xxxxxxx trend xx the xxx profit xx favorable xx we xxx see xxxx except xxx year xxxxx the xxx Profit xxxxxxxxx there xxx a xxxxxxxx increase xx the xxx profit xx the xxxxxxx in xxx rest xx the xxxxx The xxxxx reasons xxx the xxxxxxxx in xxx Profit xxx There xxx a xxxxxxxx increase xx the xxxxx over xxx past xxxx years xxxxx was x decrease xx the xxxxxxxxx and xxxxxxx expenses xx one xx the xxxxx There xxx a xxxx on xxxx of xxxxxx building xx three xxx of xxxx yearsd xx conclusion xxxxx remain xxx same xx the xxxxxx in x because xx we xxxxxxxx the xxxxxxxxx on xxxxxxx basis xx can xxx that xx the xxxxxxx cost xx goods xxxx increase xxxxx will xx a xxxxxxxxxxxx rise xx the xxxxx figure xxxx which xx give xx the xxxxxxx favorable xxx profit xxxxxx As xxx inflation xx considered xx the xxxxxxxx also xxx net xxxxxx figure xxxx gets xxxxxxxx accordingly xxx net xxxxxx in xxx year xxx net xxxxxx in xxx year xxx net xxxxxx in xxx year xxx net xxxxxx in xxx year xxx can xxx become x CPA xx Kuwait xxxxx steps xxx requirements xxxx the xxxxxx of xxxx information xx order xx become x CPA xxxxxxx United xxxxxx of xxxxxxx firstly xxx candidates xxxx to xxxxx their xxxxxxxxxxx through xxx medium xx jurisdiction xxx are xxxxxxxxxxxxx in xxx international xxxxxxxxxxxxxx of xxx Exam xx order xx determine xxxxx eligibility xxxxx rsquo x International xxxxxxxxxx services xxxx an xxxxxxxxx role xxxx the xxxxxxxxxxx of xxx student xx determined xxxx need xx complete xxxxx application xx the xxx Central xxxxxx of xxxxx NASBA xxx once xxx submission xx documents xx done xxx verification xxx candidate xxxx receive xxx Notice xx Schedule xxx The xxxxxxxx of xxx is xxx six xxxxxx In xxxx of xxxxxxxx of xxxxxx in xxxxx to xxxxxxxx their xxxx they xxxx to xxxx the xxxxxxxxx locations xxxxxxxxx to xxxx outside xxxxxx States x time xxxx of xxxxxx is xxxxxxxxx in xxxxx to xxxx the xxxx with x minimum xxxxx of xxxx the xxxxxxxxx clears xxx the xxxx sections xx the xxxx they xxxx to xxxxxxx about xxx Ethics xxxxxxxxxxx required xx their xxxxxxxxxxxx before xxxxxxxx for xxx license xxxx the xxxxxxxxx applies xxx the xxxxxxx they xxxx to xxxx credit xxxxx in xxxxxxxxxx and xx experience xx one xxxx which xxxxxxxx of xxxxx approximately xxx the xxxxxxxxxx should xx verified xx a xxx The xxxxxxxxxx requirement xx different xx different xxxxxxxxxxxxx so x candidate xxxxx to xxxx a xxxxx on xxxx aspect xxxx at xxxxx five xxxxxxx that xxx affect xxx financial xxxxxxx of xxx car xxxxxxxxxxxxx company xxx The xxxx factors xxxx may xxxxxx the xxxxxxxxx success xx the xxx manufacturing xxxxxxx are xxxxxxxx Rate xxx interest xxxx plays x very xxxxxxxxx role xx the xxxxxxx of xxx manufacturing xxxxxxx If xxx interest xxxxx are xxx then xxx sales xx car xxxxxx high xxx higher xxxxxxxx rate xxxx lower xxx sale xx car xxxxxxx in xxxxxxxx preferences xxx consumer xxxxxxxxxxx change xx a xxxxx basis xxx consumers xxx becoming xxxxxxxxxxx conscious xxxxx has xxxx to xx emergence xx electronic xxxxxxxx due xx which xxx manufacturing xxxxxxxx can xxxx tough xxxxxxxxxxx Technological xxxxxxxxxxx This xxxxxx plays x very xxxxxxxxx role xx the xxxxxxxxxxxxx advancement xxxxxxx it xxxxxxxx affects xxx success xx the xxx manufacturing xxxxxxx Unemployment xxxx ndash xx the xxxxxxxxxxxx rate xx a xxxxxxx is xxxx the xxxxxxxxxx power xx the xxxxxx decreases xxxxx in xxxx lowers xxx demand xxx cars xxxxxxxx rate- xx is x very xxxxxxxxxxx aspect xx determining xxx success xx the xxxxxxx If x country xxx a xxxxx exchange xxxx the xxxx of xxx increases xx that xxxxxxx as xxx purchasing xxxxx is xxxx in xxxx country xxxx reasons xxx car xxxxxxxx is xxxxxxxxxx b xxxxxxx how xxxx of xxxxx risk xxxxxxx you xxxxxxxx in x may xxxxxx the xxxxxxxxxxxxx of xxx car xxxxxxxxxxxxx business xxxxxxxx rate xx the xxxxx are xxxx the xxxxxxxxxx power xx people xxxxxx low xxxxx leads xx decrease xx sale xx cars xxxxxxxxx the xxxxxxxxxxxxx of xxx company xxxxxxx in xxxxxxxx preferences xxx consumer xxxxxxxxxxx play x very xxxxxxxxx role xx the xxxxxxxxxxxxx of xxx car xxxxxxxxxxxxx company xx they xxx not xxxx to xxxx the xxxxxxxxxxx of xxx consumers xx will xxxxxx their xxxxx Technological xxxxxxxxxx ndash xxxxxxxxxxxxx innovation xx very xxxxxxxxx in xxx manufacturing xxxxxxx If xxx company xxxxx to xxxxx about xxxxxxxxxxxxx innovation xx will xxxxxxxx the xxxxxxxxxxxxx of xxx company xxxxxxxxxxxx rate x If xxx unemployment xxxx in x country xx high xx leads xx decrease xx purchasing xxxxx of xxxx country xxx hence xx lowers xxx demand xxx cars xxxxxxxx affecting xxx profitability xx the xxxxxxx Exchange xxxxx The xxxxxxxx rate xxxxx a xxxxxxxxxxx role xx determining xxx purchasing xxxxx of xxxxxx If xxx exchange xxxx is xxxxx the xxxxxxxxxx power xx high xxxxxxx increasing xxx demand xxx the xxxxxxx Discuss xxx the xxxxxxxxx statements xxxxxxx the xxxxxxx of xxxxxxxx activities xxx There xxx three xxxxx of xxxxxxxx activities xx a xxxxxxx namely xxxxxxxxx financing xxx investing xxx balance xxxxx depicts xxx assets xxx liabilities xx the xxxxxxx If xxx payment xx made xx a xxxxxxxx or xxxxxxxx from x supplier xx affects xxxxxxx and xxxxxxxxx ofthe xxxxxxx If xx purchase x land xx is xxxxx as xx asset xx the xxxxxxx sheet xx we xxxxx a xxxx or xxxxx a xxx stock xx is xxxxxxxxx in xxx balance xxxxx of xxx company xxx purpose xx the xxxxxx statement xx calculate xxx net xxxxxx of xxx company xx order xx conclude xxx net xxxxxx of xxx company xx need xx find xxx different xxxxxxxxxxxx incurred xx the xxxxxxx As xxxxx expenditures xxx incurred xx the xxxx of xxxxxxxxx investing xxx operating xxxxxxxxxx they xxx depicted xx the xxxxxx statement xxx statement xx cash xxxxx depicts xxx cash xxxxxxx and xxxxxxxx of xxx company xxx cash xxxxxxxxx in xxxxxxxxx financing xxx operating xxxxxxxxxx of xxx company xx shown xx the xxxxxxxxx of xxxx flows xxx starting xxxxx of xxxxxxxxx of xxxx flows xx the xxxxxxx balance xx cash xxx closing xxxxx is xxx closing xxxxxxx of xxxx which xxxxx the xxxxxxxxxxx about xxxx used xxx invested xx the xxxxxxxx References xxx News xxxx reasons xxx car xxxxxxxx is xxxxxxxxxx online xxxxxxxxx at xxx lt xxxxx www xxx com xxxx business- xxx gt xxxxxxxx April xxxxx org xxxxx online xxxxxxxxx at xxx lt xxxxx nasba xxx amp xx Accessed xxxxxMore Articles From Accounting
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