12 Page Paper in Financial Accounting for Managers

User Generated

NtragFC

Writing

Description

Combat Flip Flops (https://www.combatflipflops.com/), a specialty store, is the company that will be considered for all parts of your budget planning and control report. For this assignment, you will develop a Twelve (12) page paper in which you address the following.

  1. Briefly discuss the ways a realistic budget will benefit the owner of Combat Flip Flops versus having no budget at all. Be sure to use Combat Flip Flops (https://www.combatflipflops.com/) as the company and any specific product details in your explanation.
  2. Prepare a sales budget for Combat Flip Flops store for the 4th quarter of 2016. Present the number of units, sales price, and total sales for each month; include October, November, and December, and a total for the quarter. Use one-half of the Veteran’s Day sales as the basis for a usual day in the new quarter. Use 30 days for each month. Calculate the total sales for each month for October, November, and December 2017.Include an end of 2017 INCOME STATEMENT (Real or Made Up)
  3. Create three (3) new products, one (1) for each of the three (3) holiday seasons in the 4th quarter (Veterans Day, Thanksgiving, Christmas). Estimate the sales units, sales price, and total sales for each month. Describe the assumptions used to make these estimates. Include an overview of the budget in the report, presenting the actual budget as an appendix with all data and calculations. Add these amounts to your sales budget.
  4. The owner of Combat Flip Flops is interested in preparing a flexible budget rather than the static budget he currently uses. He does not understand why, when sales increase, his static budget often shows an unfavorable variance. Explain how a flexible budget will overcome this problem. Use the details of your newly prepared budget for the 4th quarter of 2017 to address his concern.Insert at least one (1) graph or chart the shows the difference.
  5. Imagine that Combat Flip Flops is facing a financial challenge that is causing the actual amount of money that it spends to become significantly more than its budgeted amount. Include a discussion of your own unique cause of the overspending. Explain the corrective actions needed to address these challenges.Finally, include a BALANCE SHEET for end of year 2017 (Real or Made Up).
  6. Integrate relevant information from at least five (5) quality academic resources in this assignment. Note: Please do not use your textbook as an academic resource. Also, Wikipedia and other Websites that are unreliable do not qualify as academic resources.

Your assignment must follow these formatting requirements.

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
  • An abstract is not required.

The specific course learning outcomes associated with this assignment are:

  • Evaluate management control systems and examine their relationship with accounting and planning, including feedback and non-financial performance measurements.
  • Evaluate decision-making tools for capital investments, budgeting, and budgeting controls.
  • Analyze financial accounting tools and techniques that convert financial accounting data into information for decision making.
  • Use technology and information resources to research issues in financial accounting for managers.
  • Write clearly and concisely about financial accounting using proper writing mechanics.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: FINANCIAL ACCOUNTING

1

Financial Accounting: Combat Flip Flops
Student name
Course name – number
Instructor
Date submitted

FINANCIAL ACCOUNTING

2

Financial accounting plays a vital role in the management of organizations (Bragg, 2014).
This paper uses the context of Combat Flip Flops to outline the importance of budgeting. It will
show the importance of having budgets and demonstrate the drawbacks of lacking a budget in a
company. The paper will offer various perspectives of the essence of a flexible budget and how it
serves vital roles which cannot be undertaken through the use of a static budget.

Benefits of Budgeting for Combat Flip Flops
All firms, regardless of their size, should have a proper budget in place. To the owner of
Combat Flip Flops, a budget has certain benefits, ranging from a strong management team to
increased financial support. Precisely, the owner of Combat Flip Flops will use a realistic budget
to obtain a financial road map for the company. The realistic budget will assist the company in
outlining and obtaining the resources needed for the journey. In the budget formulation, the
management of the firm will be able to allocate funds for certain tasks. This will act as a
powerful planning approach for the top management. For instance, through the baseline budget,
the company will utilize current expenditure to determine future funding requirements that
should be formulated using the most realistic expectations (Bragg, 2014). After the budget is
established, the firm will appropriately take into consideration the possibility of finances noted
for every line item. As a result, Combat Flip Flops will be successful in preparing a pessimistic
budget which relied on decreased revenue forecasts, and identify the cuts that will be made if the
budget is instituted.
Through the use of a realistic budget, the company will successful identify its available
capital, and offer an approximate of expenditure and anticipation form incoming revenue.
Combat Flip Flops will use its budget to determine its expected revenues from its different

FINANCIAL ACCOUNTING

3

product lines such as shoes, both men and women flip flops, clothing, and accessories (Combat
Flip Flops, 2018). Through making reference to its budget, the firm will succeed in measuring
performance against expenditure and make sure that resources are available for programs which
support business growth and development. It allows the business owner to concentrate on
determining cash flow, reduction of costs, enhancing profits, and expanding the returns on
investment (Becker et al., 2016). This way, a realistic budget serves as a basis for Combat Flip
Flops’ success. It helps in the establishment of crucial plans and controls for the firm’s multiple
operations. In the absence of a realistic budget in Combat Flip Flops, it would be hard for the
business owner to control expenditure. The owner would also experience numerous challenges
when planning on the short-term as well as long-terms goals and objectives of the organization.
As a strategic tool for Combat Flip Flops, a realistic budget helps in enhancing
communication between the owner and other levels of management. The aspect of putting plans
and expectations in black and white through financial statements, inclusive of specific numbers,
projections, and objectives, helps to eradicate confusion and establish a common form of
language. Well-established budgets can appropriately assist in the communication process. It
makes communication in the accounting and finance department easier (Wildavsky, 2017). This
is because the individuals have an overview on how they should undertake their duties and
responsibilities. Additionally, it enhances communication in the sales and marketing department.
The main reason for this inference is that since budgeting has the expected revenue and unit of
sales, it makes it easier for people in the sales department to carry out their tasks (Anessi-Pessina
et al., 2016). This is because they have specific targets which they focus on achieving for
Combat Flip Flops in terms of the number of items sold over a given period. It also improves
communication in the operations department. This inference is based on the assertion that the

FINANCIAL ACCOUNTING

4

budget presents certain ways in which funds should be spent. It carefully highlights areas which
require costs to be cut. This way, the operations department uses the budget to ensure that the
day-to-day activities in the firm do not result in unwanted expenses and unnecessary costs.
Furthermore, a realistic budget in Combat Flip Flops helps to motivate managers and
employees to provide useful assessment criteria to evaluate performance. Through the creation of
a budget in the company, the entire process serves as a significant motivational influence by
engaging managers and other stakeholders in the budgeting process. This way, it encourages
managers to focus on the attainment of ...


Anonymous
Just what I needed…Fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags