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Question 3-Rolexant_costing_short-term investments.and financial reporting issues Is it now 5 July 2024. The SMT has concluded that while the production facility could be performing bether,

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Question 3-Rolexant_costing_short-term investments.and financial reporting issues Is it now 5 July 2024. The SMT has concluded that while the production facility could be performing bether, dernand for the PB-V range shows that the product is likely to be a commercial success, and sales have tar exceeded expectations. You have the following conversation with Akida Agu, Finance Manager: -Sales for our PB-V range have been exceptional. To keep up with demand, Ben Morales, Production Director, has suggested transferring an old mixing machine from our criginal tacility to our new facility. There are two potential options for this transfer. Option A involves transferring the machine and using it for six months. At the end of the six months, we would lease a new mixing machine that is larger and more efficient. Option B involves leasing the larger, more efficient mixing machine and seling the existing machine now, I have attached some financial information relating to this (Exhibit 1). I have a meeting with the SMT later on. Could you draft me a report before the meoting that explains: - How the figures shown in Exthibit 1 would be used to make a decision on whether to choose Option A or Option B, giving reasons why each item is relevant or irrelevant to the decision. (sub-task (a)) If trends continue, the exceptional demand for our PB-V range will lead to a short-term cash surplus in a month. The SMT has noted that they would like to consider short-lerm imestment opportunitses for this cash. In your report, could you also include an explanation of: - The factors that we need to consider when choosing short-term investments and two suggestions of suitable short-term investments for the surplus cash. (sub-task (b) Finally, we are preparing the financial statements for the year ending 30 June 2024 . We have a legal issue that I believe could have an impact on these financial statements. Tve attached the details of this issue to this email (Exhibit 2). In the report, could you include a commentary that explains: - How to reflect the court case settlement and the 2,000 boxes of PB-V protein bar inventory in our financial statements for the year ending 30 June 2024. (sub-task (c) ) 7 Exhibit 1 - Financial information regarding the options for transferring machineny Exhibit 2 - Legal issue

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