Week 7: Recommendations to Management Prepare a report that will provide a final

Question

Week 7: Recommendations to Management

Prepare a report that will provide a final analysis of the financial data to your manager that will help the decision makers determine if they made the right decision (or not) with the construction of the new state-of-the art facility.   Provide at least two (2) scholarly resources from the Virtual Library that will support your report. In your report you must address the following:

Analyze and state the pros and cons of building a new facility.

Summarize how this data is a key factor to the company’s decision using your financial data as support.

Requirements:

Title and reference page

Double spaced

Times New Roman or Arial 12 point font

Name Tina LePage Post Closing Trial Balance San Antonio Outfitters Post-Closing Trial Balance 12/31/XXXX Debit Credit Cash 509,380 Accounts recievable 2,129,500 Prepaid Insurance 42,300 Equipment 455,000 Office Equip. 264,300 Acc. Dep., Office Equip 11,750 Inventory 2,104,000 Building 5,785,000 Land 1,520,000 Accounts payable 704410 Interest Payable 172,000 Notes Payable 4,200,000 San Antonio, Capital 2,541,700 San Antonio, Withdrawals 10450 Revenue 6144100 Wages Expense 654500 Dep. Exp,, Office Equip. 4250 Interest Ecp. 172000 Equip Rental Exp. 71410 Office Supplies Exp. 7500 Advertising Exp. 32400 Repairs Exp. 11970 Totals $13,773,960 $13,773,960

Explanation / Answer

Answer:

Decision makers can analyse their decision of making right decision by making Income statement.

Income statement

Revenues

Revenue 6,144,100

Expenses and Losses

Wage expense 654,500

Depreciation 4,2550

Interest expense 172,000

Equip. Rental expense 71,410   

Office supplies 7,500

Advertising expense 32,400

Repairs expense 11,970

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5,190,070

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