Trudao is a chess enthusiast ans North America. As Jastu purchased a majority stake in the sets and distribules ther acer the CEO role, he is still seeking some help with fully erstanding the business. ChessPerfect produces several types of chess sets from vinyl to ttan erials. ti has two business units, one viryl and the premium Titan business unit. Jastu has ing manufacturing plarts and a great leam of management including a general manager, sales nager, production manager and HR manager. He wishes to get advice, amongst other things, running an ethical busiress (including accourting-specific elements). the most recent managemert meeting. Jastu and his managemert team discussed some of the unent financ: Here are the scripts from the management meeting: Concerns were raised by the factory's Production Manager, who is known for his pra roach. This ratio business doesn't appeal to me at all. You can never be sure t your views, and we certainly need to see how they ho not just one." She placed a paper on the table. "These are the numbers I received this morning- the 2024 numbers are not official yet as they still need to be verified and the data is a bit messy. I haven't had time to make sense of it but take a look here." The Sales Manager takes a quick look at the data and says, "I'm not an accountant but it seems to me that there might be a mistake with the numbers which impact profit- either the numbers on the paper are wrong or the ratio calculation is!" Jastu weighs what the Sales Manager is saying and quickly interjects with a gesture to the General Manager. "She did mention the numbers haven't been verified yet, but we can dig deeper into that." He makes a quick mental note to confirm how net profit is calculated and if the profit margin ratio makes sense. He wonders if there are other expenses to consider, not just operating expenses. The Production Manager took a quick look at the paper and said, "It seems like our revenues are trending down, which, of course, means lower profits. And remember that we also pay our shareholders as good a dividend as any of our competitors, if not better." Jastu recalls that the company paid about 40% of it profits as dividends last year. He has held off on declaring dividends this year, but wants a pros and cons analysis on paying dividends. He wonders how the business's cash situation would be affected if the corporation stuck to its usual policy of paying out 40% of profits to shareholders. The company typically waited until supplier bills came due before paying- what if they delayed paying? That could certainly help the cash situation, but there could certainly be downsides to an act like that. Jastu wants a detailed analysis of this, too. The Sales Manager interjected. "The lower revenues aren't my fault! Customers are not paying quickly and that messes up my numbers!" "How are union negotiations going?" Jastu turned to the Human Resources Manager who had been quiet throughout the meeting. She sighed. "They' re going- we should probably project a 10\% increase salary expenses next year they' re playing hardball because of the high inflationary environment right now? Jastu chewed his lip and refrained from asking if firing some of the louder employees was a goes way to send a message-perhaps that would limit raises to only 5%. As it stood now, he was expecting sales to remain flat next year and operating expenses to increase 8% overall. What would that do to the firm's bottom line? He made another mental note to ask for help with the projection and perhaps his negotiation strategy too. Wisely, he steered the conversation in a new direction, turning to the Production Manager. our new premium Titan business unit- how is that going?" He frowned. "We don't have exact profit numbers yet since we get special orders over there we are having trouble tracking costs of those orders." Jastu nodded. "OK, so we need a proper costing system for specific jobs." He had a suspic there were issues in the premium Titan department and had planned to ask his cost accou friend about it, but she was away on a vacation at the moment. Jastu would need to seek elsewhere- the business was getting a lot of special orders and tracking and recording co each order accurately was imperative. Specifically, he needed advice on allocating manuf overhead costs and making journal entries- detailed examples of both would really help. With so much to think about, Jastu ended the meeting and called you, an MBA with acce expertise, to help him. Objective: Write a detailed business memo providing feedback on the issues raised in the specific to the case and reference anything you copy-paste/paraphrase heavily from the other source)- your work WILL be analyzed for Al use (NOT permitted) and similarity. You submit your work digitally at the end of class and return the case paper! Trudao is a chess enthusiast ans North America. As Jastu purchased a majority stake in the sets and distribules ther acer the CEO role, he is still seeking some help with fully erstanding the business. ChessPerfect produces several types of chess sets from vinyl to ttan erials. ti has two business units, one viryl and the premium Titan business unit. Jastu has ing manufacturing plarts and a great leam of management including a general manager, sales nager, production manager and HR manager. He wishes to get advice, amongst other things, running an ethical busiress (including accourting-specific elements). the most recent managemert meeting. Jastu and his managemert team discussed some of the unent financ: Here are the scripts from the management meeting: Concerns were raised by the factory's Production Manager, who is known for his pra roach. This ratio business doesn't appeal to me at all. You can never be sure t your views, and we certainly need to see how they ho not just one." She placed a paper on the table. "These are the numbers I received this morning- the 2024 numbers are not official yet as they still need to be verified and the data is a bit messy. I haven't had time to make sense of it but take a look here." The Sales Manager takes a quick look at the data and says, "I'm not an accountant but it seems to me that there might be a mistake with the numbers which impact profit- either the numbers on the paper are wrong or the ratio calculation is!" Jastu weighs what the Sales Manager is saying and quickly interjects with a gesture to the General Manager. "She did mention the numbers haven't been verified yet, but we can dig deeper into that." He makes a quick mental note to confirm how net profit is calculated and if the profit margin ratio makes sense. He wonders if there are other expenses to consider, not just operating expenses. The Production Manager took a quick look at the paper and said, "It seems like our revenues are trending down, which, of course, means lower profits. And remember that we also pay our shareholders as good a dividend as any of our competitors, if not better." Jastu recalls that the company paid about 40% of it profits as dividends last year. He has held off on declaring dividends this year, but wants a pros and cons analysis on paying dividends. He wonders how the business's cash situation would be affected if the corporation stuck to its usual policy of paying out 40% of profits to shareholders. The company typically waited until supplier bills came due before paying- what if they delayed paying? That could certainly help the cash situation, but there could certainly be downsides to an act like that. Jastu wants a detailed analysis of this, too. The Sales Manager interjected. "The lower revenues aren't my fault! Customers are not paying quickly and that messes up my numbers!" "How are union negotiations going?" Jastu turned to the Human Resources Manager who had been quiet throughout the meeting. She sighed. "They' re going- we should probably project a 10\% increase salary expenses next year they' re playing hardball because of the high inflationary environment right now? Jastu chewed his lip and refrained from asking if firing some of the louder employees was a goes way to send a message-perhaps that would limit raises to only 5%. As it stood now, he was expecting sales to remain flat next year and operating expenses to increase 8% overall. What would that do to the firm's bottom line? He made another mental note to ask for help with the projection and perhaps his negotiation strategy too. Wisely, he steered the conversation in a new direction, turning to the Production Manager. our new premium Titan business unit- how is that going?" He frowned. "We don't have exact profit numbers yet since we get special orders over there we are having trouble tracking costs of those orders." Jastu nodded. "OK, so we need a proper costing system for specific jobs." He had a suspic there were issues in the premium Titan department and had planned to ask his cost accou friend about it, but she was away on a vacation at the moment. Jastu would need to seek elsewhere- the business was getting a lot of special orders and tracking and recording co each order accurately was imperative. Specifically, he needed advice on allocating manuf overhead costs and making journal entries- detailed examples of both would really help. With so much to think about, Jastu ended the meeting and called you, an MBA with acce expertise, to help him. Objective: Write a detailed business memo providing feedback on the issues raised in the specific to the case and reference anything you copy-paste/paraphrase heavily from the other source)- your work WILL be analyzed for Al use (NOT permitted) and similarity. You submit your work digitally at the end of class and return the case paper