MANAGERIAL ACCT CONCEPTS INSTRUCTIONS
You have been hired as a financial manager for the U.S. division of a multinational manufacturing company, Ace Green, Inc. The company makes energy management equipment, such as meters and load balancers for solar energy installations. In your role, you create budgets, monitor and analyze financial results and forecasts, and make recommendations for short-term and long-term actions. The division’s chief financial officer, Clara Kennedy, has asked you to provide some financial insight to inform business decisions for the upcoming year.
Ace Green, Inc.’s U.S. division employs approximately 150 people and is based in an industrial complex just outside of a major city. The company provides the following products and services:
The company is considering expanding its operations by hiring 50 additional employees and expanding its facilities as a result of higher expected demand. The expected Return on Investment (ROI) for this project is 15%, based on the increased production and number of additional clients that the organization will be able to accommodate. Clara is looking for your advice to explain the impact of ROI and similar investment evaluation criteria on management decisions, and to inform her about what other factors might need to be considered based on financial information.
Reference the Ace Green, Inc. summary income statement.
Your financial report and business memo will help Clara to make an informed decision that moves the company forward. Your deliverables will include a financial report with completed financial information and a business memorandum. In addition to preparing financial information to inform business decisions, be sure to speak to considerations related to expanding operations. Use the financial report template to complete the appropriate financial information, then use the financial information to inform the business memorandum.
Business Memorandum: The business memorandum will explain business implications of the financial information using the Ace Green, Inc. summary income statement. Remember that your audience does not have a strong financial knowledge base, so your explanations should be clear and thorough.
What to Submit
Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following:
The business memorandum should be 3-5 pages in length, and it should explain how the information in the summary income statement informs management decisions. Include the Ace Green, Inc. summary income statement that you used to inform your ideas.