Accounting Anwar Aluminum Works
The intent of this assignment is to provide an opportunity for individuals to work on a case combining the financial accounting knowledge from ENMN 324 with an examination of a managerial situation. The case, Anwar Aluminum Works, is based on an actual situation that occurred. The link to the case can be found in Readings & Resources under Outline on the Moodle course site. The case has been specifically chosen due to its links to entrepreneurial issues and problem solving in the areas such as relevant costs, sensitivity analysis, breakeven, return on investment and payback.
1. Give an overview of the global metals industry and its subset, the aluminum industry (external Opportunities and Threats). Also, describe AAW’s current situation (internal Strengths and Weaknesses).
2. Calculate the projected contribution margin rates for each product order
3. Identify all the potential cash flows associated with each of the two product orders and break them down indicating whether each one is fixed or variable and whether it is a recurring cost or a one-time cost. Create two separate three-column tables to display this information using the following column headings: 1. Name of the cash flow item; 2. Fixed or Variable; 3. Recurring or one-time investments.
4. Perform a quantitative assessment:
a. Prepare an incremental analysis for each of the two customer orders, including the incremental cash inflows and outflows from operations for each order.
b. b) determine the return on investment and the payback period in years for each scenario based on your calculations.
Place this order with us and get 18% discount now! to earn your discount enter this code: special18 If you need assistance chat with us now by clicking the live chat button.