Budget Project

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Description

BUDGET PROJECT

Objective: To understand and apply the basic concepts of profit planning.

Grading: This project is worth 40 points.

Group/Individual assignment: This is a group assignment or individual assignment. If you choose to work in a group, you must evaluate your group members based upon their participation in the assignment. This evaluation must be turned in so that all group members receive the appropriate points. I also recommend that you use the collaboration feature in Canvas to share documents that you are working on with one another. Group size may not exceed 4 students.

Required: You need to prepare a comprehensive 6-month budget, including supporting schedules and a report for the period January 1, 2016 to June 30, 2016 for Napoleon, Inc (a fictional company). This project must include:

  1. Sales Forecast and Budget
  2. Cash Receipts budget
  3. Purchase budget
  4. Cash Purchases Disbursements budget
  5. Operating Expense budget
  6. Summary Cash budget
  7. Budgeted Income Statement
  8. Budgeted Balance Sheet
  9. A written Summary Report

Notes and Hints

  1. All 9 parts must be submitted before I grade the project.
  2. The schedules/budgets must be prepared on Excel. The templates I have prepared must be used as is.
  3. Part of this project is demonstrating proper use of Excel. You may only input a “hard number” into a pink cell. All yellow cells must be formula based (no numbers included – use appropriate cell referencing). You must include a copy of the formula version of the project or you will receive a 0 (zero).
  4. I recommend constructing the formulas for one month and then copying the formulas over to the remaining months.
  5. Rounding is encouraged and you may ignore interest and taxes.
  6. The budget templates and this instruction sheet are located on the budget project module. Make sure you save the file to excel and then open the file through Excel (not Internet Explorer).
  7. Check figures are also located on the budget project module.
  8. A written summary report, outlining the main issues and problems identified during the budgeting process and suggestions for improving the budget forecast. Don’t explain how you prepared the budget. Analyze the issues, including profitability, cash needs, and cost structure. Suggest at least 3 ways you can improve the business forecast for the next 6 months to a year. Test your suggestions by preparing revised budget schedule. Attached is an example of a budget report.
  9. The information for Napoleon, Inc. is on the budget project module.

**The rest of the instructions are in the file attached.

**This should be all the details that are needed for this project. Thank you in advance!

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Explanation & Answer

Attached.

Principles of Managerial AccountingHeron, Inc.Budget Project

Name:
Napoleon, Inc
Sales Budget
For the 6 mos ending june 30

Budged unit sales
Selling price per unit
Total Sales

Nov '09
11,250
$
10.00
$
112,500

Cash Sales %
Credit Sales %
Cash Sales
Credit Sales
Total Sales

Current month A/R Collections
1 month prior A/R Collections
2 months prior A/R Collections
Uncollectible

$
$

Dec '09
11,600
10.00
116,000

Jan '10
10,000
$
10.00
$
100,000

Feb '10
11,400
$
10.00
$
114,000

Mar '10
12,000
$
10.00
$
120,000

Apr '10
15,600
$
10.00
$
156,000

$
$

$

$

$

$

$

May '10
18,000
11.25
202,500

Bad Debt Expense
Desired ending inventory %

6 mos total
89,000
$

940,000

$

$

282,000
658,000
940,000

30%
70%
$
$

33,750
78,750
112,500

$
$

34,800
81,200
116,000

$

30,000
70,000
100,000

$

34,200
79,800
114,000

$

36,000
84,000
120,000

$

46,800
109,200
156,000

$

60,750
141,750
202,500

30%
50%
16%
4%
Napoleon, Inc
Cash Collections
For the 6 mos ending June 30

Current month cash Sales
Current month A/R Collections
1 month prior A/R Collections
2 months prior A/R Collections
Total cash collections

June '10
22,000
$
11.25
$ 247,500

Jan '10
30,000
21,000
40,600
12,600
$
104,200
3,150

$

Feb '10
34,200
23,940
35,000
12,992
106,132

Mar '10
36,000
25,200
39,900
11,200
$
112,300

Apr '10
46,800
32,760
42,000
12,768
$
134,328

May '10
60,750
42,525
54,600
13,440
$
171,315

Ju...


Anonymous
Great study resource, helped me a lot.

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