We are hired as consultants to assist Arctica Co. in accounting for its warranty expenses. Arctica offers a one-year warranty covering parts on each snowmobile it sells. The following Tableau Dashboard is provided to assist us. Estimated Warranty Expense vs. Actual Warranty Claims $25,000 $20,000 Actual Warranty Claims Estimated Warranty Expense $15,000 $10,000 $5,000 4 Years Ago 3 Years Ago 2 Years Ago 1 Year Ago Current Year Sales by Model Estimated Warranty Expense Percentage by Model Puma Jag Lynx Puma Jag Puma 1 Looking at past years, does it appear that Arctica has usually underestimated or overestimated its warranty bites 2. How would we suggest Arctica change its estimates of warranty b es in future period 3. Management tes us that Arctica plans to keep estimated warranty expense percentages to a minimum next year why might management want to keep these percentages low? 4. Alternatively, assume management informs us that Arctica had a great year and has very high net income. However, management is now concerned about high taxes, which are calculated as a percentage of net income. What might management try to do to low Arctica's Caves o re re periods 1. Looking at past years, does it appear theatrica has usually underst 2. How would we sugu Actic changes of w e 3. Why might management want to keep these percentages low What might management try to do to lower Arctica's taxes Puma- Jag Lynx +ableau 1. Looking at past years, does it appear that Arctica has usually underestimated or overestimated its warranty labios 2. How would we suggest Arctica change its estimates of warranty abilities in future periods? 3. Management tells us that Arctica plans to keep estimated warranty expense percentages to a minimum next year. Why might management want to keep these percentages low? 4. Alternatively, assume management informs us that Arctica had a great year and has very high net income. However, management is now concerned about high taxes, which are calculated as a percentage of net income. What might management try to do to lower Arctica's t es? t ylist 1. Looking at past years, does that Arctica has underestimated or overestimated s 2. How would we suggest Arctic changes imates of w a y be in future periods? Why might management want to keep these percentages low 4. What might management try to do to lower Actica's taxes? warranty estimate percentages Warranty estimate percentages warranty ontimate percentages the same estimate warranty expenses e to search OS Puma Jag Lynx tableau 1. Looking at past years, does it appear that Arctica has usually underestimated werestimated its warrantybines? 2. How would we suggest Arctica change its estimates of warranty liabides in future periods? 3. Management tells us that Arctica plans to keep estimated warranty expense percentages to a minimum next year Why might management want to keep these percentages low? 4. Alteratively, assume management informs us that Arctica had a great year and has very high net income. However management is now concerned about high taxes, which are calculated as a percentage of net income. What might management try to do to lower Arctica's taxes? i n une periods? 1. Looking at past years does it appear that Arctica has usually underest 2. How would we suggest Arctica change its estimates of warranty la 3. Why might management want to keep these percentages low? 4. What might management try to do to lower Arctic's taxes? show a smooth earnings pattern agement bonus that is based on net income mount of parts needing to be purchased e to search Puma Jag Lynx tableau 1 Looking at past years, does it appear that Arctica has usually underestimated or overestimated its warranty labes? 2. How would we suggest Arctica change its estimates of warranty liabilities in future periods? 3. Management tells us that Arctica plans to keep estimated warranty expense percentages to a minimum next year. W ymiant management want to keep these percentages low? 4. Alternatively, assume management informs us that Arctica had a great year and has very high net income. However, management is now concerned about high taxes, which are calculated as a percentage of net income. What might management try to do to lower Arctica's taxes? 1. Looking at past years, des appear that Arctica has wally underestimated or overestimated its warranty abil 2. How would we suggest Act a change its estimates of warranty abilities in future periods? 3. Why might management want to keep these percentages low? 4. What might management try to do to lower Arctica's taxes? Warranty estimate percentages mit parts purchased for warranty claims mit the number of warranty claims to search