Those are the questions that need to be answered the assignment is attached In file XXXXXXXXXX1. Prepare an interpretation of the analysis.2. Is this analysis sufficient or will you need...

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Those are the questions that need to be answered the assignment is attached In file 1. Prepare an interpretation of the analysis.
























2. Is this analysis sufficient or will you need additional analyses?














3. Use the Ortho, Inc. dataset to create additional analyses of results by year. Document in the space provide the method you used to create your analysis, justification regarding why it is valid and reliable, and your interpretation of the results of your analysis.




Ortho Inc. is a medical device manufacturer based in San Diego, California. The company produces and sells custom-made knee replacement implants: « ltisaprivately held company and files U.S GAAP based financial statements with its bank as part of its debt covenants. «The board of directors is very involved and continues to emphasize the importance of well-designed and effective internal controls. « Orthois a decentralized organization, with 5 manufacturing and sales sites across the United States employing a total of 28 product managers and 29 sales managers. Each site operates independently and is responsible for procurement of raw materials, production, and sales of finished products in its own geographic region. Sales managers maintain their own customer relationships, while product managers monitor inventory levels and order raw materials as needed. « Silicone and plaster are used to create the molds for all the company’s knee replacements. The materials poured into molds vary by product-some are metal, some are plastic, and some are ceramic. The company has invested significantly in the development and maintenance of its information system to collect and report complete and accurate data. Company management uses the data captured in the information system to creat reports and support decision- making. The data dictionary includes the most relevant data used by management, accountants, auditors, and other professionals. MATERIAL MASTER TABLE ET LiL MaterialCategory Constant stating raw material Material “ Material item identifier Material Description OJ Description of material Notes: The Material Master table contains information about different raw materials purchased by Ortho. PRODUCT MASTER TABLE NPT Primary Key Definition ProductCategory a Constant stating knee implant Product “ Product item identifier ProductDescription Oo Description of product Notes: The Product Master table contains information about different products sold by Ortho. TRANSACTIONS TABLE JEL TS Primary Key Definition TransType v Indicates the type of transaction (O for orders and § for sales) TransNumber “ Identifier for orders and sales SiteCode o ‘Transaction site (one of five locations) Manager O Employee associated with the transaction EntitylD O Supplier/Customer associated with the transaction Quantity oO ‘Transaction quantity Unit oO Unit of transaction (Ib or kg for orders, ea for sales) UnitPrice oO Price per unit TransDate O Sales/purchase order date CompleteDate oO Shipping/receiving date (sales/orders) Item 0 ‘The material purchased or product sold CreatedBy O ‘The source of the data (e.g., daily batch) Subtotal O ‘Transaction total before tax (UnitPrice * Quantity) Tax 0 ‘Tax amount Notes: The Transactions table contains a combination of purchase order, sales order, and sales return transactions SITES TABLE PTT retry PET SiteCode = Identified for company sites (five state abbreviations) siteName 0 Name of site (states) Notes: The Sites table contains the name of each site, which is the name of the state where the site is located. EMPLOYEE MASTER TABLE PTS Primary Key Description EmployeelD 2 Employee identifier FirstName 0 Employee first name LastName 0 Employee last name SiteCode a Company site identified (state) Position 0 Employee position OrderApproval 0 Employee order approval authority Notes: The Employee Master table contains information about employees associated with the sales order and pur- chase order transactions, c.g, sales and product managers. ENTITY MASTER TABLE Name Primary Key Description EntitylD “2 Entity (supplier/customer/Ortho, Inc.) identifier SiteCode 0 Indicates which Ortho site the entity is associated with EntityName 0 Entity company name ContactFirstName 0 Entity contact first name ContactLastName 0 Entity contact last name Phone 0 Entity phone Email 0 Entity email StreetAddress| 0 Entity street address City 0 Entity city State oO Entity state Zip 0 Entity zip code Entity Type 0 Entity type (“S” for customer and “O for supplier) The entity-relationship diagram (ERD) shows the relationships among the tables in the information system. ‘Entity Relationship Diagram (ERD) i. Stename { Transype Transhumbor =, 1 § Materlal Quantity Firsthame. id LastName WaterialCategory unierice iy Materialpescription Transbate Position ——— J | compete ni ee rr ProductCategory [C0 Productoescrption Sttecode Entityname contactirstName ContactLasthame Phone Email Strectaddress ay state ap Entityrype. (Notes: The ERD indicates which tables Joi and which columns 0 use the ons) The comparative income statement shows income for 2024 and 2025. Ortho Inc. Comparative Income Statement Comparative Income Statement EILTVITEEN 2024 2025 (audited) (unaudited) Net Sales $913 $854 Costof Sales 579 542 Gross Profit 334 312 Research and development 57 59 Selling, general and administrative 191 196 Recall charges, net of insurance proceeds 5 5 Intangible asset amortization 3 2 Total operating expenses 256 262 Operating Income 78 50 Other income (expenses), Net 1 2 Earnings before income taxes 79 52 Income taxes 1 8 Net earnings $68 $44 Tax Accounting: Interpret Descriptive and Diagnostic Analytics Ortho's management would like to identify potential opportunities for cost savings. One aspect of purchasing costs that management has not yet considered is sales tax paid on purchases. Management has requested an analysis of sales tax paid by site. As a staff tax accountant for Ortho, you have prepared the following trend analysis of sales tax paid by location. Ortho, Inc. - Sales Tax Analysis $40,000,000 $350,000.00 $300,000 $250000000 Taxesin Thousands $200,000.00 $150000000 $100000000 550000000 © Califomia Florida llinois NewYork Texas State urchases Sales TaxPaid Tax Rate Prepare an interpretation of the analysis. B 7 YY TT IL 9 = BB 4 1 TT « 0Word(s) eTextbook and Media Is this analysis sufficient or will you need additional analyses? ” Bla 1 | « eTextbook and Media Use the Ortho, Inc. dataset to create additional analyses of results by year. Document in the space provide the method you used to create your analysis, justification regarding why it is valid and reliable, and your interpretation of the results of your analysis. 9 = # | i 1 MT « eTextbook and Media
Answered 1 days AfterNov 20, 2023

Answer To: Those are the questions that need to be answered the assignment is attached In file ...

Prince answered on Nov 21 2023
23 Votes
1. The analysis shows the total purchases, sales tax paid, and sales tax rate for each of Ortho Inc.'s 5 manufacturing and sales sites across the United States. A few key observations can be made:
· California has the highest sales tax rate at 8.68% and also paid the most in total sales tax at $28.2 million. This is likely driven by having both high tax rates and high total purchases.
· Florida has the lowest sales tax rate at 7.5% but has the second highest total purchases. Despite the low rate, Florida still paid $26.3 million in sales tax due to the high purchase volume.
· Illinois has the second highest tax rate at 8.8% and paid the third most in sales tax. The high rate led to significant sales tax expenses despite having lower total purchases than Florida.
· New York and Texas have similar total purchases at around $368-375 million. However, New York's higher 8.52% tax rate led to $1.6 million more in sales tax paid than Texas which has an 8.19% rate.
Overall, the analysis shows that both tax rates and total purchase volumes drive overall sales tax expenses. States like California and Illinois with high tax rates pay more sales tax, while states like Florida with high...
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