wrting a budget

  • Read the case and analyze the information.
  • Prepare an operating budget in standard “income statement” format.
  • Prepare a narrative report (or notes to the income statement) addressing why/how quantitative items were selected. The following items must be explained:
    1. Sales Forecast
    2. Purchases budget (raw materials, labor, all resources)
    3. Operating Expenses
  • Prepare a cash budget using any acceptable format. The following items must be explained or shown on the budget:
    1. The process by which cash inflows were projected.
    2. The process by which cash outflows were projected.
    3. The process by which financing, if applicable, was determined.
    4. How interest and other financing charges were calculated.
  • Prepare a capital budget using any acceptable format.
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