Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help me please, urgent, thank you in advanced The Riverstone Group principally engaged in the production, sale and distribution of specialised cleanroom products for use

image text in transcribedimage text in transcribed

help me please, urgent, thank you in advanced

The Riverstone Group principally engaged in the production, sale and distribution of specialised cleanroom products for use in highly controlled and critical environments. We believe that we are one of the leading manufacturers of cleanroom gloves for the HDD and semiconductor sectors within the electronics industry in Asia. We manufacture mainly nitrile and natural rubber gloves primarily for use in a Class 10 and Class 100 cleanroom environment. We also manufacture other cleanroom consumable products comprising cleanroom packaging materials and finger cots. The Riverstone Group is planning to expand their business by planning to open new branches in Japan at the end of 2021. Below an extract information to construct a pro forma profit and loss: Number of sales representative was 3 persons. It is assumed there is a salesman will be on annual leave in September and no replacement is required. 2. Sales commission is based on 5% of sales for August and it will reduce by 1% in the following months. It is expected that monthly miles per sales representative for August and September was 2,000 and 1,000 respectively. 3. Salary for sales manager was RM5,000 per month but there is additional increase by 2% based on sales of August. This additional charge is considered as a bonus to sales manager. 1. 4. Support salaries was RM3,000 per month and reimbursement miles was RM0.60 per 10 miles. 5. Insurance is charged per quarter RM1,000 and office rental and utilities was RM4,000 per month 6. Sales per 200 miles was RM20,000 and cost of goods sold for August and September was RM80,000 and RM60,000 respectively. Required: a. Prepare Forecast Profit and Loss Statement of the Riverstone Group for August and September 2021 (18 marks) From information (a) above, do you agree with the company plans to open a new branch in Japan. Justify your answer. (7 marks) b

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Liberalization And Opening In East Asia Issues And Policy Challenges

Authors: Yung Chul Park

1st Edition

8950301350, 978-8950301354

More Books

Students also viewed these Finance questions

Question

(a) Find P( t0.005 -t0.025).

Answered: 1 week ago