OVERVIEW

You have just been asked by the CEO of your company (Big Bucks Corporation) to investigate

and analyze a publicly traded company. The CEO is considering the possibility of acquiring another

corporation. The CEO would like you to prepare a report with the following included:

An overview of the company Big Bucks Corp. should acquire and why

A summary of this companys outlook (make sure to include information from MD&A)

A concept from Cost Accounting that you plan on implementing when we acquire this

company

o Make sure to include at least a 1-page research summary of this concept

o Also include an explanation of how/why this concept will be (or should be) applied to

the company being acquired

A profit report analyzing best/worst case scenarios for your newly acquired company when you

implement this new cost accounting concept

o The base case should be the companys most recent annual income statement

o Use your companys average tax rate for all three scenarios

o You will need to explain why profits went up/down and why expenses went up/down

for both the best and worst case scenarios. Keep it realistic!!

o Show your income statement in summary form as follows:

Sales/Revenues

- COGS

= Gross Profit

- Operating Expenses

= Earnings before taxes

- Taxes

= Net Income (Loss)

o Your best case must be a scenario where Sales/Revenues have increased and COGS has

decreased in percentage terms

o Your worst case must be a scenario where Sales/Revenues have decreased and COGS

has increased in percentage terms

o Show this analysis in a printed out Excel document (make sure you print a copy of

formulas used as well)

Anything else of financial interest you wish to add

VERVIEW You have just been asked by the CEO of your company (Big Bucks Corporation) to investigate d analyze a publicly traded company. The CEO is considering the possibility of acquiring another rporation. The CEO would like you to prepare a report with the following included: - An overview of the company Big Bucks Corp. should acquire and why - A summary of this company's outlook (make sure to include information from MD\&A) - A concept from Cost Accounting that you plan on implementing when we acquire this company - Make sure to include at least a 1-page research summary of this concept - Also include an explanation of how/why this concept will be (or should be) applied to the company being acquired - A profit report analyzing best/worst case scenarios for your newly acquired company when you implement this new cost accounting concept - The base case should be the company's most recent annual income statement - Use your company's average tax rate for all three scenarios - You will need to explain why profits went up/down and why expenses went up/down for both the best and worst case scenarios. Keep it realistic!! - Show your income statement in summary form as follows: Sales/Revenues - COGS = Gross Profit - Operating Expenses = Earnings before taxes - Taxes = Net Income (Loss) - Your best case must be a scenario where Sales/Revenues have increased and COGS has decreased in percentage terms - Your worst case must be a scenario where Sales/Revenues have decreased and COGS has increased in percentage terms - Show this analysis in a printed out Excel document (make sure you print a copy of formulas used as well) - Anything else of financial interest you wish to add