Harry Hufnpuff GlassBlowing Analysis & Recommendations
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Below is a description of a company, Harry Hufnpuff, which is involved in glassblowing. You are to prepare a report with an analysis of Harry's business and recommendations for improvement as indicated below. Be sure to include your financial computations as indicated below:
1. Read and assimilate the background materials indicated below.
2. Prepare the following to assist Harry in saving his business:
1. An income statement for 2006 in traditional format. (Project the totals for the year.)
2. An income statement for 2006 in contribution format. (Project the totals for the year.)
3. Calculate breakeven point for a year's activity including Harry's desired net income.
4. Prepare a summary of specific recommendations for Harry to improve his cash flow.
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Solution Summary
Excel spreadsheet attached prepares an income statement, break-even point and specific recommendations for this business to improve their cash flow.
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