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Case
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Reference no. UVA-C-2198
Authors: Francis J Spreng
Published by: Darden Business Publishing
Originally published in: 2004
Version: 15 June 2009
Length: 8 pages
Data source: Published sources

Abstract

It''s panic time at Blackheath Manufacturing. Profits have been declining, so the owner''s son comes to the rescue to run the company. He asks a consultant to determine what''s wrong. And the consultant has specific answers: The company''s pricing guidelines are all wrong, there needs to be a budgeting system to reverse the downward slide in profits, and a former employee should be rehired. This case provides students with the data for constructing a production and raw-materials budget, flexible-expense budget, income statement, balance sheet, and cash budget. See also ''Blackheath Manufacturing Company'' (UVA-C-2197).
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Abstract

It''s panic time at Blackheath Manufacturing. Profits have been declining, so the owner''s son comes to the rescue to run the company. He asks a consultant to determine what''s wrong. And the consultant has specific answers: The company''s pricing guidelines are all wrong, there needs to be a budgeting system to reverse the downward slide in profits, and a former employee should be rehired. This case provides students with the data for constructing a production and raw-materials budget, flexible-expense budget, income statement, balance sheet, and cash budget. See also ''Blackheath Manufacturing Company'' (UVA-C-2197).

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