Question: Is it now 5 July 2 0 2 4 . The SMT has concluded that while the production facility could be performing better, demand for
Is it now July The SMT has concluded that while the production facility could be performing better, demand for the PBV range shows
that the product is likely to be a commercial success, and sales have far exceeded expectations.
You have the following conversation with Akida Agu, Finance Manager:
"Sales for our PBV range have been exceptional. To keep up with demand, Ben Morales, Production Director, has suggested transferring
an old mixing machine from our original facility to our new facility.
There are two potential options for this transfer. Option A involves transferring the machine and using it for six months. At the end of the six
months, we would lease a new mixing machine that is larger and more efficient. Option B involves leasing the larger, more efficient mixing
machine and selling the existing machine now. I have attached some financial information relating to this Exhibit
I have a meeting with the SMT later on Could you draft me a report before the meeting that explains:
How the figures shown in Exhibit would be used to make a decision on whether to choose Option A or Option B giving reasons
why each item is relevant or irrelevant to the decision. subtask a
If trends continue, the exceptional demand for our PBV range will lead to a shortterm cash surplus in a month. The SMT has noted that
they would like to consider shortterm investment opportunities for this cash.
In your report, could you also include an explanation of:
The factors that we need to consider when choosing shortterm investments and two suggestions of suitable shortterm investments
for the surplus cash. subtask b
Finally, we are preparing the financial statements for the year ending June We have a legal issue that I believe could have an
impact on these financial statements. I've attached the details of this issue to this email Exhibit
In the report, could you include a commentary that explains:
How to reflect the court case settlement and the boxes of PBV protein bar inventory in our financial statements for the year
ending June subtask c
Exhibit Financial information regarding the options for transferring machinery
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