Using the budget project you just completed, create a PowerPoint or Word Document presentation that will serve as an executive brief to the organization's leadership team. The presentation should include an overview of the budgets and the process for creating the budgets.
1. Briefly summarize each department budget and note
any large variances.
2. Explain two variances that might cause concern or prompt further
analysis.
3. Create an executive briefing presentation in which you briefly
summarize all budgets. Include all supporting documentation as
addendums to the brief.
SALES BUDGET | THE SALES IN DECREASING SHARPLY IN THE MONTH OF SEPTEMBER FROM 910000 N AUGUST TO 475000 IN SEPTEMBER. THE MANAGEMENT IS EFFICIENT ENOUGH TO COLLECT ITS DUE OF THE PAST MONTH IN THE NEXT MONTH. |
INVENTORY PURCHASE BUDGET |
THE DESIRED ENDING INVENTORY IS COMPUTED AS A PERCENTAGE OF NEXT MONTH COGS. BUT IN CASE OF JUNE ENDING INVENTORY THE DESIRED ENDING AS 20% OF 270000 WHICH IS 54000 IN VALUE BUT THE ACTUAL WAS 50000. |
SELLING AND ADMINISTRATION BUDGET |
THE BUDGET IS STATIC BUDGET WHICH TAKES INTO ACCOUNT ALL THE EXPENDITURE WHETHER VARIABLE OR FIXED, IRRESPECTIVE OF CASH OR NOT. THE VARIANCE IN THIS SHOULD BE MONITORED WITH UTMOST PROFESSIONAL SCEPTICISM. |
CASH BUDGET |
CASH BUDGET HIGHLIGHTS ALL THE RELEVANT COLLECTIONS AND PAYMENTS FOR THE INCOME AND EXPENDITURE RESPECTIVELY. CASH BUDGET HERE HIGHLIGHTS ALL THE COLLECTION FROM DEBTORS AND PAYMENTS TO CREDITOR. THE ACTUAL SHOULD BE TALLIED WITH THE BUDGET PRECISELY TO KNOW THE MISAPPROPRIATIONS IF ANY. |
BUDGETED INCOME STATEMENT |
THE BUDGETS INCOME STATEMENT HIGHLIGHTS ALL THE CURRENT PERIOD INCOME AND EXPENSES. THE GROSS PROFIT FOR THE QUARTER HAS INCREASED MY .98 PERCENTAGE FROM THE PREVIOUS YEAR. THE NET OPERATING PROFIT HAS SIGNIFICANTLY INCREASED FROM 5.96% TO 31.57%. |
BUDGETED BALANCE SHEET |
THIS BUDGET HIGHLIGHT ALL THE ASSET AND LIABILITY OF THE COMPANY. THE CURRENT RATIO HAS INCREASED TO 4.82 FROM 3.446 WHICH ARE FAR AWAY FROM THE IDEAL POSITION 2;1. THE FIXED ASSET TO EQUITY RATIO REMAIN CONSTANT. |
PART 2
THE VARIANCES ARE-
1) THE CURRENT RATIO- ALREADY HIGHLIGHTED THE QUANTITY IN ABOVE TABLE
2) THE NET OPERATION PROFIT RATIO- ALREADY HIGHLIGHTED THE QUANTITY IN ABOVE TABLE
3) THE CASH IN HAND AS END OF SEPTEMBER HAS INCREASED 3 TIME.
Using the budget project you just completed, create a PowerPoint or Word Document presentation that will...
1: Prepare a sales budget, including a schedule of expected
cash collections.
2: prepare a merchandise purchase budget, including a schedule
of expected cash disbursements for merchandise, and a selling and
administrative budget.
3: prepare a cash budget.
MOST LIKELY NUMBERS AND ASSUMPTIONS SALES MANAGER PRIVATE INFORMATION October Most likely sales 600,000 910,000 475,000 385,000 PURCHASING MANAGER PRIVATE INFORMATION Most likely cost of merchandise as a % of sales Desired ending inventory as a percentage of next month's cost of...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 72,000 Accounts receivable 128,000 Inventory 60,900 Plant and equipment, net of depreciation 218,000 Total assets $ 478,900 Liabilities and Stockholders’ Equity Accounts payable $ 79,000 Common stock 308,000 Retained earnings 91,900 Total liabilities and stockholders’ equity $ 478,900 Beech’s managers...
Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year. The company's balance sheet as of June 30 is shown below: COLERAIN CORPORATION Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation 95,000 141,000 67,000 350,000 Total assets $ 653,000 Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings 76,000 450,000 127,000 Total liabilities and shareholders' equity $653,000 Colerain's managers have made the following...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 72,000 128,000 60,900 218,000 $ 478,900 $ 79,000 308,000 91,900 $ 478,900 Beech's managers...
Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year. The company's balance sheet as of June 30 is shown below: COLERAIN CORPORATION Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation $ 89,000 135,000 61,000 290,000 Total assets $ 575,000 $ Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings 70,000 390,000 115,000 Total liabilities and shareholders' equity $ 575,000 Colerain's managers have...
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Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year. The company's balance sheet as of June 30 is shown below: COLERAIN CORPORATION Balance Sheet June 30 Assets $ 94,000 140,000 Cash Accounts receivable Inventory Plant and equipment, net of depreciation 66,000 340,000 $ 640,000 Total assets Liabilities and Shareholders' Equity Accounts payable $ 75,000 440,000 125,000 Common shares Retained earnings Total liabilities and shareholders equity...
Scott Products Inc. is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash needs for the third quarter. In the past, Scott Products has had to borrow money during the third quarter to support peak sales of back- to-school materials, which occur during August. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for for July through October...
CASE 2 (20 points) Here are some important figures from the budget of Wise Corporation for the third quarter of 2020: September 51.275.00 SLOO Credit alles Credit purchase Cash disbursement Wages, and expenses 158.900 Era . Credit sales collections Collected in mouth of sale Collected month after sale Never collected Je credits S1.135.000 June credit purchases 565102 Being able 55.000 All credit purchases are paid in the following month after the purchase. Instructions: a) Using the above information, complete the...
Check my work Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below: points Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders equity $ 84,000 144,000 63.750 223,000 $ 514,750 cBook $ 84,000 349.000...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 90,00 136,000 52.000 210,000 5498.000 $71.100 327.ee 99,900 $498,000 Beech's managers have made the...