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 xx have xx consider xxx base xxxx to xx For xxx year xxx index xxxxx percentages xxx each xxxx will xx 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 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 b xxx trend xxx COGS xx constantly xxxxxxxxxxx for xxx past xxxx years xx the xxxxx was xxxxxxxxxx increasing xxxx the xxxxxxxx in xxxxx The xxxx was xx which xxxxxxxxx to xx we xxx trend xx marketing xxxxxxxx we xxx see xxxx it xxx unfavorable xx the xxxx and xxxxxxxx constant xx year xxx it xxxxxx a xxxxxxxxx trend xx the xxxx but xx again xxxxxx unfavorable xx c xxx overall xxxxx of xxx net xxxxxx is xxxxxxxxx as xx can xxx that xxxxxx for xxxx where xxx Net xxxxxx decreased xxxxx was x constant xxxxxxxx in xxx net xxxxxx of xxx company xx the xxxx of xxx years xxx three xxxxxxx for xxx increase xx Net xxxxxx are xxxxx was x constant xxxxxxxx in xxx sales xxxx the xxxx five xxxxx There xxx a xxxxxxxx in xxx marketing xxx selling xxxxxxxx in xxx of xxx years xxxxx was x gain xx sale xx unused xxxxxxxx in xxxxx out xx five xxxxxx My xxxxxxxxxx would xxxxxx the xxxx as xxx answer xx c xxxxxxx if xx consider xxx inflation xx overall xxxxx we xxx see xxxx if xxx overall xxxx of xxxxx sold xxxxxxxx there xxxx be x simultaneous xxxx in xxx sales xxxxxx also xxxxx we xxxx us xxx overall xxxxxxxxx net xxxxxx figure xx the xxxxxxxxx is xxxxxxxxxx on xxx expenses xxxx the xxx profit xxxxxx also xxxx adjusted xxxxxxxxxxx The xxx profit xx the xxxx The xxx profit xx the xxxx The xxx profit xx the xxxx The xxx profit xx the xxxx How xxx one xxxxxx a xxx in xxxxxx Write xxxxx and xxxxxxxxxxxx Show xxx source xx your xxxxxxxxxxx In xxxxx to xxxxxx a xxx outside xxxxxx States xx America xxxxxxx the xxxxxxxxxx need xx prove xxxxx eligibility xxxxxxx the xxxxxx of xxxxxxxxxxxx who xxx participating xx the xxxxxxxxxxxxx administration xx the xxxx In xxxxx to xxxxxxxxx their xxxxxxxxxxx NASBA 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 If xxx unemployment xxxx of x country xx high xxx purchasing xxxxx of xxx people xxxxxxxxx which xx turn xxxxxx the xxxxxx for xxxx Exchange xxxxx It xx a xxxx significant xxxxxx in xxxxxxxxxxx the xxxxxxx of xxx company xx a xxxxxxx has x lower xxxxxxxx rate xxx sale xx car xxxxxxxxx in xxxx country xx the xxxxxxxxxx power xx high xx that xxxxxxx Five xxxxxxx the xxx industry xx struggling x Discuss xxx each xx those xxxx factors xxx provided xx a xxx affect xxx profitability xx the xxx manufacturing xxxxxxxx Interest xxxx If xxx rates xxx high xxx purchasing xxxxx of xxxxxx become xxx which xxxxx to xxxxxxxx in xxxx of xxxx affecting xxx profitability xx the xxxxxxx Changes xx consumer xxxxxxxxxxx The xxxxxxxx preferences xxxx a xxxx important xxxx in xxx profitability xx the xxx manufacturing xxxxxxx If xxxx are xxx able xx meet xxx preferences xx the xxxxxxxxx it xxxx hamper xxxxx sales xxxxxxxxxxxxx Innovation 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 xx https xxx bbc xxx news xxxxxxxxx gt xxxxxxxx April xxxxx org xxxxx online xxxxxxxxx at xx https xxxxx org xx Accessed xxxxxMore Articles From Accounting
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