Based on the Balance sheet and Income Statement provided what conclusion and recommendation can we make with the application of managerial accounting concepts. Please see the solution for the cases formulated.

Balance Sheet 2019, 2020, 2021 2019 2020 2021 CURRENT ASSETS Cash in bank and on hand 456.502 92,066 71,055 Account Receivable 322,779 401,308 312.025 Prepaid Expenses 405,502 314,608 230,111 Inventory 169,060 553.053 315.300 TOTAL CURRENT ASSET 1,353,842 1,361,635 1,428,491 NON CURRENT ASSETS Fixed Assets 4.384.422 4.894.151 4,903.896 Accumulated Depreciation (3,521,196) (3,974,048) (4.396,790) Construction In-Progress 25.441 26,901 30,165 Investments 404,691 593,857 600,456 TOTAL NON CURRENT ASSETS 1,293,358 1.640,862 1,137.727 TOTAL ASSETS: 2.647.200 3.002.497 2.566,218 CURRENT LIABILITIES Accounts Payable 271,372 397.373 523,993 Other Current Liabilities 523,211 1.828.434 1,055,075 TOTAL LIABILITIES: 794.583 2.225.806 1,579,074 SHAREHOLDERS EQUITY Paid in Capital 317.885 317,885 317,885 Retained Earnings/Deficit Beg. 1,393,501 1,377.285 460,722 Current Period (22.215) [916,563) 209,107 Gain/loss on Actuarial 54.793 (20.120) (19,018) Cumulative Translation Account 102.654 18.204 18.450 TOTAL SHAREHOLDERS EQUITY 1,852,617 776.690 987.145 TOTAL LIABILITIES AND EQUITY 2.647.200 3.002.497 2.566.218 (0) 0Case 1 USD USD Sales 6,038,943.27 100% Breakeven Sales 5,555,239.15 100% Cost of Sales: 3,170,139.80 52% Cost of Sales: 2,916,219.60 52% Margin 2,868,803.47 48% Margin 2,639,019.55 48% Less: OPEX 2,639,019.55 44% Less: OPEX 2,639,019.55 48% Net Profit / (Loss) before tax 229,783.92 4% Net Profit / (Loss) before 0% Note:* OPEX are all fixed Solution Breakeven Sales is 5.55M USD.Case 2 Target profit 500,000.00 Fixed expense 2,639,019.55 CM 3,139,019.55 CM Ratio 48% Target Sales 6,607,759.00 Case 3 2020 2021 Sales 4,738,230 6,038,943 Net operating income (916,563) 209,107 Average operating assets 2,249,403 2,108,668 Return on investment (ROI) -41% 10% Minimum required rate of return: Percentage 12% 12% Dollar amount 269,928 253,040 Residual income (1,186,492) (43,933) Residual income is negative since actual ROI is lower than minimum required rate of return. This condition is at bad as management needed to have positive income in the coming years.CA SE PROBLEM: 1. 2. 3. |Given the situation and data in 221, management would like to know how much Sales would he sewiced to arrive at breakeven. Hovur much would be the sales to attain target prot of USDSSDJMGED. The managementwant to know the ROI and residual income for 202i] and 221 given that the minimum required rate of return is 12%. The companjjr engage a new project titled \"Bionic max 2'\Top Draw Animation Inc. Audited Income Statement 2019, 2020, 2021 Amount in millions Functional Currency: USD 2019 2020 2021 Sales 7,792,416 100%% 4,738,230 1009% 6,038,943 100% Cost of Sales: 3,728,189 489% 2,132,327 4596 3,170,140 529% Margin 4,064,227 52% 2,605,903 559% 2,868,803 4896 Less: OPEX Staff Costs 992,888 13% 1,041,356 2.29% 1,119,482 19% Landlord Expenses 617,038 896 535,699 11% 497,593 896 Management Fees 1,290,000 17% 854,405 189% 096 Publicity & Promotion 102,337 1% 99,631 29% 20,318 Administration Expenses 569,490 517,839 568,540 99% Provision for Dep'n/Amortisat 465,982 696 453,464 109% 422,638 Other expenses / (Income) 12,742 250,933 59E 10,449 09% Total: 4,050,477 529% 3,753,325 79%% 2,639,020 449% Net Profit / (Loss) before tax 13,749 (1,147,421] -249% 229,784 49% Provision for Income Tax 35,965 (230,858) 20,677 Net Profit / [Loss) (22,215) (916,563] -19% 209,107 3%