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Help Needed please its urgent Presidential Corporation is a medium sized manufacturing company founded in 2012 to supply the Southern Caribbean with locally produced options.
Help Needed please its urgent
Presidential Corporation is a medium sized manufacturing company founded in 2012 to supply the Southern Caribbean with locally produced options. The Senior Accountant is preparing for a meeting with the executive leadership and has asked all management personnel to prepare reports and schedules based on their department and operational functions. The objective is to determine operational deficiencies and how they can reduce cost to meet customers' budget, while making a profit. Question 4 Part A Presidential Corporation produces blenders and has always manufactured all the necessary parts. An external supplier has offered to sell a motor to the corporation for $70 each. To evaluate the offer the following costs relative to the current production of the motor has been extracted: Required: a. Assuming that the corporation has no alternative use for the facilities presently being used to manufacture the motor, should the corporation accept the offer to buy the part? b. Suppose that the corporation could use the spare facilities to produce another product which could generate a contribution of $300,000 per year, would the decision be different? Part B Forecasted cash receipts and expenditure for the period August to October are as follows: Additional information provided: Expenditure for the period July to October includes monthly depreciation of $5,000. Payment for the cash related expenditure would be 40% in the month of purchase, the balance being paid the following month. The company intends to sell equipment valued at $25,000 in September. Insurance of $25,000 is payable in December. Opening cash balance as at August 1,$18,800. Required: Prepare a monthly Cash Budget for the period August to October 2021.Step by Step Solution
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