Hawthorn Manufacturing needs to prepare a cash budget for December 2021 . The cash balance at the beginning of December is $14,000. The actual sales for October and November and expected sales for December are: Sales on account are collected over a three-month period in the following ratio: 15% in the month of sale, 65% in the month following sale 17% in the second month following sale 3% remaining are uncollectible. Additional information includes: (a) Purchases of inventory will total $50,000 for December; 15\% will be paid for in December. Accounts payable from November's inventory purchases is $32,000, all of which will be paid in December. (b) Selling and administrative expenses are budgeted at $24,000 for December; of which $8,000 is for depreciation. (c) Equipment costing $35,000 will be purchased for cash during December, and other miscellancous cash expenses of $5,000 will be paid during December. Required Prepare a schedule showing the cash collections from sales on account for the month of December AND a Cash Budget for December. Show all working clearly Part B (40 marks) You are to read the journal article by Nonaka and Kenney (1991), "Towards a new theory of innovation management: A case study comparing Canon, Inc. and Apple Computer, Inc.", Journal of Engineering and Technology Management, 8, p. 67-83. The journal article is attached as a separate file in the LMS System. Required: Critically evaluate the role of management accounting systems and the provision of accounting information in the innovation process of these two companies by answering the 3 questions below: 1. Identify the components of the management accounting system in each of the two companies and discuss their relevance in enabling decisions to be made efficiently and effectively. Include examples in your answer. (4 marks) 2. The article describes the innovation process in a firm as 'a process of information creation', and a firm needs to organize themselves 'to transmit the new information'. Explain how management accounting contributes to this innovation process. Include in your discussion two (2) specific examples from each of the two companies mentioned in the journal article. (4 marks) 3. Provide four (4) specific outcomes or lessons learned from the article's research lindings that will be useful for management accountants in Kuwaiti companies to learn from, and justify your answer [i.e. provide 2 outcomes from each company]. (4 marks) Hawthorn Manufacturing needs to prepare a cash budget for December 2021 . The cash balance at the beginning of December is $14,000. The actual sales for October and November and expected sales for December are: Sales on account are collected over a three-month period in the following ratio: 15% in the month of sale, 65% in the month following sale 17% in the second month following sale 3% remaining are uncollectible. Additional information includes: (a) Purchases of inventory will total $50,000 for December; 15\% will be paid for in December. Accounts payable from November's inventory purchases is $32,000, all of which will be paid in December. (b) Selling and administrative expenses are budgeted at $24,000 for December; of which $8,000 is for depreciation. (c) Equipment costing $35,000 will be purchased for cash during December, and other miscellancous cash expenses of $5,000 will be paid during December. Required Prepare a schedule showing the cash collections from sales on account for the month of December AND a Cash Budget for December. Show all working clearly Part B (40 marks) You are to read the journal article by Nonaka and Kenney (1991), "Towards a new theory of innovation management: A case study comparing Canon, Inc. and Apple Computer, Inc.", Journal of Engineering and Technology Management, 8, p. 67-83. The journal article is attached as a separate file in the LMS System. Required: Critically evaluate the role of management accounting systems and the provision of accounting information in the innovation process of these two companies by answering the 3 questions below: 1. Identify the components of the management accounting system in each of the two companies and discuss their relevance in enabling decisions to be made efficiently and effectively. Include examples in your answer. (4 marks) 2. The article describes the innovation process in a firm as 'a process of information creation', and a firm needs to organize themselves 'to transmit the new information'. Explain how management accounting contributes to this innovation process. Include in your discussion two (2) specific examples from each of the two companies mentioned in the journal article. (4 marks) 3. Provide four (4) specific outcomes or lessons learned from the article's research lindings that will be useful for management accountants in Kuwaiti companies to learn from, and justify your answer [i.e. provide 2 outcomes from each company]. (4 marks)
