Case Scenario Canaervon Company is a medium sized packing material manufacturing company. The following are the most recent financial statements of the company Statements of profit or loss for the year end ed 315t December 01 2000 4200 01 es es Gross profit 1800 ibution costs Administration expenses Operating profit 2040 900 erest Profit before taxation 540 axation Profit after taxation 140 Statements of financial position as at 31st December 018 15 201 on-current assets urrent assets ventory Receivable 18 18 1000 15000 Equity and Liabilities Share 18 Non-current liabilities 10% Loan notes Current liabilities Loans and other borrow 12 1000 200 15000 Total Equity and liabilities Other relevant information: A. Benchmarks - Industry average Ratio for finan ear en Decembeir 34% Return On C Current ratio Quick ratio ivables days Payable days Ge 65 days ratio B. The following budgeted information is available of Canaervon Company budget manual, no change in actual units &budgeted units produced and sold: 201 201 14400 200 080 revenue Cost of sales 600 1360 240 tribution costs erest 360 C. Canaervon company is making a plan for the six months ended 31st Dec 2019 for two types of packing materials "Milkpowder Cans' and Chips Pouch' and are considering following planning tools - Budgets, pricing and costing strategic planning). Budgets and pricing for two types of Packing material 'Milk Powder Cans' and 'Chips pouch which uses the same raw materials, Raw material-R and Raw material- T for the six months ended 3lst Dec 2019 are given below: .One unit of 'Milk Powder can' uses 1.5 litres of Raw material -R and 2 kg of Rawmaterial-T .One unit of CHIPS POUCH uses 2.5 litres of Raw material -R and 1 kg of Raw material-T. * Estimated cost of Raw material-RIS OMR 1.5 per litres and of Raw material-T OMR 3.5 per kg The sales budget for 2019 comprises 4000 units of MILKPOWDER CANS and 3,000 units of 'CHIPS POUCHS Finished goods in stock at 1 July 2019 will be 750 units of MLKPOWDER CANS' and 150 units of CHIPS POUCHES and the company plans to hold inventories of 300 of each product at 31 December Inventories of raw material are 3,000 LITRES of Raw material -R and 1400 KG ofT at 1 July 2019 and the company plans to hold 2,500 LITRES of Raw material -R and 1750 KG of T respectively at 31 December 2019 The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as follows: Finished Good: product MILKPOWDER CANS-loss of 25 units, product CHIPS POUCH-loss of 50 units. Raw Material: Raw material -R-loss of 250 liters and T: loss of 100 kg a. b. Canaervon Company- management accounting department staff can use PESTEL analysis, SWOT analysis, Balance Scorecard and Porter's Five forces Analysis in making strategic plan for the year 2019. As a member of Management accounting team of Canaervon Company you are required to evaluate how planning tools for accounting respond appropriately to solving financial problems to lead organisations to sustainable success. (For details refer to Grades given in page 2 of the assignment)