Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are an accounting analyst for Cyber Mow, which manufactures robotic lawn mowers. Cyber Mow offers its customers a right of return and recognizes revenue

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
You are an accounting analyst for Cyber Mow, which manufactures robotic lawn mowers. Cyber Mow offers its customers a right of return and recognizes revenue in its income statement as gross sales revenue minus actual and estimated sales returns. Two years ago, the company's process improvement team recommended a change to the specifications of their most popular mower. This change was motivated by an apparent increase in sales returns following a cost-cutting effort in 2017. The more recent change was aimed at improving the product's quality, thereby reducing returns. To assess the success of the quality control recommendations, you created a Tableau Dashboard depicting trends in gross sales revenue, sales returns, net sales, and the sales returns to gross sales percentage for the most recent seven years. Net sales Sales returns Sales and Sales Returns Sales revenue $1,200K $1,200K $1,000K $1,000K $800K- $800K S600K Sales revenue $600K $400K $400K $200K SAK SOK 2015 2016 2017 2018 2019 2020 2021 Sales Returns to Gross Sales Percentage 10.0% 8.0% Sales Return % 6.0% 4.0% 2.0% 2015 2016 2017 2018 2019 2020 2021 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What were the amounts of Cyber Mow's net sales and sales returns in 2016? ONet sales, $957,000; sales returns, $62,000. ONet sales, $62,000; sales returns, $894,000. Net sales, $894,000; sales returns, $62,000. Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 How would you characterize the effect of the cost-cutting effort of 2017? OA decline in the quality of the product prompted an increase in mower returns by customers. Sales increased with no change in product returns The company experienced a temporary increase in gross sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 How would you describe the trend in sales returns over the most recent seven-year period? Sales returns increased after the 2017 cost-cutting effort and decreased after the change in specifications two years ago O Sales returns increased steadily over the seven-year period. Sales returns remained relatively constant over the seven-year period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What would you conclude about the effect of the more recent change to the specifications of their mower? The change in specifications two years ago was successful in reversing the increase in the sales returns to gross sales percentage instigated by the cost-cutting effort of 2017 but at the expense of a decline in net sales. The change in specifications two years ago was successful in reversing the increase in the sales returns to gross sales percentage instigated by the cost-cutting effort of 2017. The change in specifications two years ago was unsuccessful in reversing the increase in the sales returns to gross sales percentage instigated by the cost-cutting effort of 2017 but prompted an increase in gross sales.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Management Accounting

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Dave Burgstahler, Jeff O. Schatzberg

16th Global Edition

0273790013, 978-0273790013

More Books

Students also viewed these Accounting questions