Question

How would I calculate the changes in the selling prices per unit (television) using the data in Exhibit 1 and to calculate the profits that would have been reported in absence of accounting manipulations using the data in Exhibits 1 and 2.

Table 1 Sales (Volume and Amount) and Operating profits of Visual Products Business FY FY FY FY FY 2014 Item FY 2008 FY 2011 FY 2013 2007 2009 2010 2012 1-US Sales Volume (Million units) 4.71 6.38 9.25 12.97 13.72 9.94 7.50 5.33 269,20 Sales (Million Yen) 613,10 0 533,00 530,10 615,50 0 0 0 462,70 0 300,60 0 216,500

Answer 1

How would I calculate the changes in the selling prices per unit (television) using the data in Exhibit 1

To calculate thr selling prices using the sales and volume of units, we divide the total sales by the sales of units of every year.

Item	FY 2007	FY2008	FY2009	FY2010	FY2011	FY2012	FY2013	FY 2014(Q1-Q3)
sales volume(million units)	4.71	6.38	9.25	12.97	13.72	9.94	7.5	5.33
sales (million Yen)	613,100.00	533,000.00	530,100.00	615,500.00	462,700.00	300,600.00	269,200.00	216,500.00
operating profit(million Yen)	(13,500.00)	1,300.00	3,800.00	3,200.00	(53,500.00)	(48,100.00)	(26,100.00)	(35,400.00)
Selling price changes	130,169.85	83,542.32	57,308.11	47,455.67	33,724.49	30,241.45	35,893.33	40,619.14

as it is shown above the price of the television units has had a decrease tendency going from $130,169.85 in 2007 to $30241.45 in 2012. on the other hand in 2013 and 2014, the price increased.

calculate the profits that would have been reported in absence of accounting manipulations using the data in Exhibits 1 and 2.

since the accounting manipulations only had the information about the carryovers available from the begining of FY2011, there is some retained profit that hasn´t been carried forward. that´s the one for the FY2008 and FY 2009. FY2010 rofit is shown in the exhibit 2, that´s why we aren´t going to use it in the calculation.

TO MAKE THE CALCULATION, we just have to add the three profit amounts that refer to FY2008 and 2009

		FY 2008	FY 2009	Profit that would´ve been reported
Operating profit (million Yen)		1300	3800	5100