Balance Sheet(in thousands)Thursday, September 30, 2010Friday, September 30, 2011Sunday, September 30, 2012Monday, September 30, 2013Tuesday, September 30, 2014ASSETSCurrent assets:Cash and cash equivalents$97,550$102,054$108,950$98,050$107,890Restricted cash—current portion$190$190$190$110$1,110Accounts receivable, less allowance for doubtful accounts$49,650$50,643$56,501$49,200$75,510Inventories$106,900$100,238$115,559$49,089$49,786Income taxes receivable$650$987$879$348$698Deferred income taxes$9,213$9,125$9,300$8,950$8,650Other current assets$1,136$973$1,300$645$2,000Total current assets$265,289$264,210$292,679$206,392$245,644Property, plant and equipment, net$148,921$167,860$177,302$226,820$228,075Deferred income taxes—long-term portion$59,352$59,182$59,522$58,843$47,200Prepayments and deferred charges$3,076$2,941$3,212$2,670$3,753Restricted cash—long-term portion$110$110$110$110––Other intangible assets including Goodwill, net$37,020$37,090$36,951$13,214$12,900Total assets$513,768$531,393$569,775$508,049$537,572LIABILITIES AND STOCKHOLDERS’ EQUITYLiabilitiesAccounts payable$25,600$31,850$40,506$41,970$54,284Accrued expenses$8,448$10,511$13,037$17,890$21,780Accrued pension and postretirement benefits$16,640$20,703$23,960$27,890$18,758Deferred revenue—current portion$1,890$1,980$2,001$2,500$2,500Current maturities of long-term obligations$109$108$109$110$1,009Total current liabilities$52,687$65,151$79,613$90,360$98,331Long-term obligations (less current portion)$3,097$3,074$1,580$1,482$5,434Deferred revenue (less current portion)$64,030$41,228$59,509$36,070$39,250Non-current income taxes payable$603$409$397$292$308Accrued pension and postretirement benefits$142,050$152,791$156,900$169,870$170,802Total liabilities$262,467$262,653$297,999$298,074$314,125Stockholders’ equity:Common stock, $0.001 par value (40,000,000 shares authorized)$11$11$11$12$13Additional paid-in capital$217,631$220,926$223,220$227,650$237,989Retained Earnings (Accumulated Loss)$33,659$47,803$48,246($17,687)($14,855)Total stockholders’ equity$251,301$268,740$271,476$209,975$223,147Total liabilities and stockholders’ equity$513,768$531,393$569,475$508,049$537,272 Cash equivalent is a liquid asset, for example, a bank deposit, that can be easily converted into cash. Click any red icon below for information. Restricted funds are deposited in a separate account for a specific purpose, such as debt servicing. Accounts receivable refers to the amounts owed to the organization by customers for products and services that have been used by the customers, but not yet paid for. This amount is the net of an allowance account. The allowance for a doubtful account is an estimate made by management to estimate the amount that will be uncollectable. Income tax receivable and income tax payable adjust for temporary differences between generally accepted accounting principles reporting and reporting for Internal Revenue Service tax purposes. Current assets are those assets that can be co ...

1. Balance Sheet(in thousands)Thursday, September 30,
2010Friday, September 30, 2011Sunday, September 30,
2012Monday, September 30, 2013Tuesday, September 30,
2014ASSETSCurrent assets:Cash and cash
equivalents$97,550$102,054$108,950$98,050$107,890Restricte
d cash—current portion$190$190$190$110$1,110Accounts
receivable, less allowance for doubtful
accounts$49,650$50,643$56,501$49,200$75,510Inventories$10
6,900$100,238$115,559$49,089$49,786Income taxes
receivable$650$987$879$348$698Deferred income
taxes$9,213$9,125$9,300$8,950$8,650Other current
assets$1,136$973$1,300$645$2,000Total current
assets$265,289$264,210$292,679$206,392$245,644Property,
plant and equipment,
net$148,921$167,860$177,302$226,820$228,075Deferred
income taxes—long-term
portion$59,352$59,182$59,522$58,843$47,200Prepayments and
deferred charges$3,076$2,941$3,212$2,670$3,753Restricted
cash—long-term portion$110$110$110$110––Other intangible
assets including Goodwill,
net$37,020$37,090$36,951$13,214$12,900Total
assets$513,768$531,393$569,775$508,049$537,572LIABILITIE
S AND STOCKHOLDERS’ EQUITYLiabilitiesAccounts
payable$25,600$31,850$40,506$41,970$54,284Accrued
expenses$8,448$10,511$13,037$17,890$21,780Accrued pension
and postretirement
benefits$16,640$20,703$23,960$27,890$18,758Deferred
revenue—current
portion$1,890$1,980$2,001$2,500$2,500Current maturities of
long-term obligations$109$108$109$110$1,009Total current
liabilities$52,687$65,151$79,613$90,360$98,331Long-term
obligations (less current
portion)$3,097$3,074$1,580$1,482$5,434Deferred revenue (less
current portion)$64,030$41,228$59,509$36,070$39,250Non-

2. current income taxes payable$603$409$397$292$308Accrued
pension and postretirement
benefits$142,050$152,791$156,900$169,870$170,802Total
liabilities$262,467$262,653$297,999$298,074$314,125Stockhol
ders’ equity:Common stock, $0.001 par value (40,000,000
shares authorized)$11$11$11$12$13Additional paid-in
capital$217,631$220,926$223,220$227,650$237,989Retained
Earnings (Accumulated
Loss)$33,659$47,803$48,246($17,687)($14,855)Total
stockholders’
equity$251,301$268,740$271,476$209,975$223,147Total
liabilities and stockholders’
equity$513,768$531,393$569,475$508,049$537,272
Cash equivalent is a liquid asset, for example, a bank deposit,
that can be easily converted into cash. Click any red icon below
for information.
Restricted funds are deposited in a separate account for a
specific purpose, such as debt servicing.
Accounts receivable refers to the amounts owed to the
organization by customers for products and services that have
been used by the customers, but not yet paid for. This amount is
the net of an allowance account. The allowance for a doubtful
account is an estimate made by management to estimate the
amount that will be uncollectable.
Income tax receivable and income tax payable adjust for
temporary differences between generally accepted accounting
principles reporting and reporting for Internal Revenue Service
tax purposes.
Current assets are those assets that can be converted into cash
within 12 months.
Property, plan and equipment, and net are fixed assets net of
accumulated depreciation.
Intangible assets are the long-term resources of an entity but
have no physical existence. They derive their value from
intellectual or legal rights and the value they add to the
organization. Examples include patents and trademarks.

3. Goodwill is a type of intangible asset that arises when the
company acquires another firm and pays more for it than its net
assets marked to fair value.
Assets represent resources owned by the organization.
Accounts payable (A/P) represent unpaid bills or amounts that
are owed to suppliers (trade creditors). Accounts payable are
shown under current, or short-term, liabilities because they are
to be paid quickly, generally within ten to forty-five days.
Accrued expenses (such as wages, salaries, and utility charges)
are expenses that are incurred during the period but not paid.
They are shown in the balance sheet as a current, or short-term,
liability.
Deferred revenue represents payments made by customers for
goods and services for which the sales transaction is still
incomplete (such as annual software license fee).
Current liabilities are bills and obligations that arise in the
normal course of a business and are due for payment within a
year.
Long-term obligations are those debts and obligations which
will not be paid off at the end of the current financial year.
Total liabilities represent total debts and obligations of the
company including both current and noncurrent liabilities.
Equity represents ownership, which is the value of the
company—assets minus liabilities.
Common stock is assigned a prorated proportional value of the
organization to shareholders. Common stock is assigned a
legally established value, which is the par value. When stock is
issued for more than the par value, the difference is assigned to
additional paid-in capital.
Retained earnings is the cumulative earning (or losses) of the
company less the dividends paid, if any.
Total stockholders’ equity is the total value attributed to the
ownership of the company.
Total liabilities and stockholders’ equity is the sum of liabilities
and equity.
Income StatementFor the period ending:Thursday, September

4. 30, 2010Friday, September 30, 2011Sunday, September 30,
2012Monday, September 30, 2013Tuesday, September 30,
2014Net Revenues(dollars in 000s)Computer component
Manufacturing$135,023$210,000$248,790$188,906$149,088Aut
o Compnents
Manfacturing$128,978$146,897$165,498$129,540$109,098Othe
r markets$42,002$81,025$86,995$53,237$60,279Total Business
Unit
Revenue$306,003$437,922$501,283$371,683$318,465Other
revenue$5,600$10,600$15,066$12,033$13,001Net
revenues$311,603$448,522$516,349$383,716$331,466Cost of
sales$286,675$399,185$475,041$396,844$280,890Gross
Profit$24,928$49,337$41,308($13,128)$50,576Selling, general
and administrative
expenses$19,008$31,845$37,053$34,207$35,470Research and
Development$2,119$3,050$3,511$3,120$4,105Impairment of
Goodwill$23,737Operating income
(loss)$3,802$14,442$744($74,192)$11,001Interest
income$68$98$149$138$98Interest
expense$309$396$450$647$1,550Income (loss) before income
taxes$3,561$14,144$443($74,701)$9,549Provision for (benefit
from) income taxes($8,768)$6,717Net income
(loss)$3,561$14,144$443($65,933)$2,832
Total business unit revenue is generated from the sale of goods
or services.
Other revenue signifies the revenue associated with the
activities outside of or peripheral to, the central business of a
firm.
The cost of sales is the sum of direct material, direct labor, and
factory overheads incurred in making a product that is sold.
Gross profit represents revenue minus the cost of sales.
Selling, general, and administrative expenses (SG&A) represent
the combination of various expenses, including advertising,
sales, accounting, and general administrative expenses. These
expenses are not attributed to the manufacturing process.
Goodwill is impaired when the underlining fair value of the

5. investment decreases beyond its purchase price.
Operating income is the income (revenue – expenses) resulting
from a firm's primary business operations.
Net Income is the total revenue in an accounting period minus
all expenses of the same period.
Sheet1
BudgetBudgeted AmountsSalesSales price per unit$35.00Project
Sales Volume (in units)1,500,000Variable Cost per unitdirect
Labor$2.50Direct Materials$6.00Direct sales
expense$0.50Fixed CostProduct management
team$5,000,000.00Amortization of sales
price$20,000,000.00Interest expense$3,000,000.00
Actual ResultsActual SalesSalesActual average Sales
Price$35.50Actual Sales (in units)1,350,000Variable Cost per
unitActual direct labor$2.75Actual direct materials$5.25Actual
sales expense$0.65Fixed CostProduct management
team$5,000,000.00Amortization of sales
price$20,000,000.00Interest expense$3,000,000.00
The product line was purchased and you are assigned P&L
responsibility for the Prime
Component Product Line.
The first year’s budget is based upon t he variables outlined in
M4: Assignment 2.
Part 1 assignment:
Based upon this budget, project sales and profit for the product
line.
At year end the company reviewed its results and determined
the following results:
Your assignment:
1. Prepare a sales budget variance report
2. Prepare a manufacturing budget report

6. At year end the company reviewed its results and determined
the following results:
Your assignment:
1. Prepare a sales budget variance report
2. Prepare a manufacturing budget report
Part 1 assignment:
Based upon this budget, project sales and profit for the product
line.
The product line was purchased and you are assigned P&L
responsibility for the Prime Component Product Line.
The first year’s budget is based upon the variables outlined in
M4: Assignment 2.
CVPSales price per unit$75.00*Variable Cost per
unit$67.00*Fixed Cost$100,000.00*Targeted Net
Income$0.00*(assume 0 if you want to calculate
breakeven)Calculated Volume12,500calculated* inputted by
user