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complete the analysis using the Excel workbook provided. Document your team discussion in the chart below. Considerations for Vacuum _ Bonanza _ Inc. Vacuum Bonanza
complete the analysis using the Excel workbook provided. Document your team discussion in the chart below.
Considerations for VacuumBonanzaInc.
Vacuum Bonanza Inc. manufactures vacuum cleaners. It sells its vacuums to large retailers, such as Target and WalMart. In Vacuum looked like it might not survive. Its sales were declining and its expenses increasing. However, at the end of due to a leveraged buyout new management came to the Company. Their goal was to put the bonanza back into Vacuum Bonanza. The new management had a reputation for aggressive "chainsaw" style cutting of expenses and employees.
During the new management reported to the press that they had hired new engineers, streamlined operations, and cut payroll expenses. Indeed, management told the press that it took a "chainsaw" approach to slashing payroll through layoffs.
In they introduced a new vacuum cleaner with more power. According to Consumer Reports, the new vacuum was high powered, but did not add anything fresh to the market, in terms of vacuum technology. Further, in they implemented a bonus plan for executives.
Please perform the vertical common size and horizonal trend analysis for Vacuum Bonanza. Then as a team, complete the chart below. Prioritize which six accounts you believe are most at risk of material misstatement, by listing the most serious matter as the st priority. Do not list an accountassertion combination columns and more than once. Provide evidence for why your team believes that the account is at risk of misstatement in the form of a ratio and explanation.
N submit a Team agreed upon Vertical, Horizonal, and other Ratio analysis. You may submit as a screen shot copied in this document or as a separate Excel document. As a Team help each other to understand the significance of the ratios and how to compute them, if necessary. However, if you've forgotten how to do ratios, they are easy to find on the Web. One place is Investopedia. Financial Ratios
investopedia.com Keep in mind that for the turn ratios receivables assets, inventory, equity we use the average beginning balance ending balance in the denominator. Used LinkedIn Learning to help you with Excel find on our home page at the bottom, under "Student" column.
tableQuestiontableTotalpossibletableConcern isarattableRatioEvidencematches thelogicalarenertableThe ratioevidence andorqualitativediscussion isexplained in amanner thatsupports a risk ofmaterialtableAssertion islogical forthe concern,account andevidenceDiscuss whyyou chosethisassertionstableRelatedaccount in
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