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Stacy Lynn, Inc. (SLI) is a manufacturer of rice cookers. The rice cookers sell for $45 per unit;>> Get This Solution




Question;Stacy Lynn, Inc.;(SLI) is a manufacturer of rice cookers. The rice cookers sell for $45 per;unit, the sales were 3,600 units in the current year, 2009. SLI has 400 units;available for sale at the end of 2009 and is projecting sales of 4,400 units in;2010. SLI is planning the same production level for 2010 as in 2009, 4,000;units. The variable manufacturing costs for SLI are $16 and the variable;selling costs are only $.50 per unit.....;Stacy Ann Lynn;the great grand-daughter of the company?s founder is the current CEO/President;of the company, which is still a family owned business. The previous several;years have been especially difficult due to price-pressure from Chinese;imports. At the moment, all that Stacy believes she can do is to try to keep;the company running until the economy improves. But, the company needs an;immediate infusion of cash. So, she has decided to ask her bank for a large;line of credit to maintain operating viability for the foreseeable future.;Required;A. If Patty wants to show the bank the maximum profit over the previous;2-year period, which costing method should she present?;B. But, the bank requires that all financial statements conform to;Generally Accepted Accounting Principles (GAAP).;C. The bank has delivered a memo in preparation for the meeting to;negotiate the Credit Line,...for detail refer attachment.....


Paper#37734 | Written in 18-Jul-2015

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