Assume that you are starting your own coffee shop. You will need to develop budgetedincome statement and balance sheet for the next three years. Your goal is to apply the budgetconcepts and formulate strategies for operational sustainability. Task: Model FinancialStatement Budgets for a Coffee Shop a. Income statement budget model for 3 years. b.Balance sheet budget model for 3 years. Hints (USE $ as currency + make it a low budgetbusiness + see the attached tables as refrernce to the kind of required tables)

Income Statement Budget Model (3 Years)Year 1 Year 2 Year 3RevenueSales - Coffee | ()∣() |…

Answered: Assume that you are starting your own…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 3R: Review the completed master budget and answer the following questions: Is Ranger Industries...

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Based on the information below, create a monthly budget. Once the budget is established, estimate how much you would be able to save monthly. Identify three money wasters that you might keep you from sticking to your budget. What would the impact of those money wasters be on your ability to save? Budget Scenario You have recently graduated with a degree in marketing and started a job that pays $50,000 per year. Your monthly net income is $3,000. You have decided to move into a one-bedroom apartment in Saint Paul. Since you work within walking distance, you won’t need to own a car. You don’t want to be lonely in your new place, so you decided to adopt a pet. You let your friends talk you into joining the YMCA since it is now close to your new place. You have one credit card for emergencies, but you did use it to buy some new furniture for your apartment. You need to create a budget that you can stick to, because you are saving your money to take a trip to Europe in three years.…
Friendly Bank is attempting to determine the cost behavior of its small business lending operations. One of the major activities is the application activity. Two possible activity drivers have been mentioned: application hours (number of hours to complete the application) and number of applications. The bank controller has accumulated the following data for the setup activity: Required: 1. Estimate a regression equation with application hours as the activity driver and the only independent variable. If the bank forecasts 2,600 application hours for the next month, what will be the budgeted application cost? 2. Estimate a regression equation with number of applications as the activity driver and the only independent variable. If the bank forecasts 80 applications for the next month, what will be the budgeted application cost? 3. Which of the two regression equations do you think does a better job of predicting application costs? Explain. 4. Run a multiple regression to determine the cost equation using both activity drivers. What are the budgeted application costs for 2,600 application hours and 80 applications?
Budgeting types Consider the following budgets and budget types. Which budget or budget type should be used to meet the following needs? a. Upper management is planning for the next five years. b. A store manager wants to plan for different levels of sales. c. The accountant wants to determine if the company will have sufficient funds to pay expenses. d. The CEO wants to make companywide plans for the next year.
Provided that you have received start-up funding of $250 000.00 for any business of your choice, prepare a forecast where costs associated with required business resources are outline and create a budget for the first two months of the business. Calculate the break-even point.
1. Identify the specific type of budget • Long-range Annual Achievement that would best address each of the following questions a full-service hotel manager would like to answer. (a) (b) (c) (d) (e) (h) (i) (j) Question How much will we spend for front desk agents next Tuesday night? What will be our labor costs in the third quarter of next year? What will be my rooms renovation costs in four years when all guest room furniture must be replaced? What is our best estimate of next year's rooms revenue? How much sales tax will we collect next week? What will be the amount of our guest room supplies purchases next year? How many guest rooms will we sell next year? How many guest rooms will we sell next week? What will be the cost of replacing the hotel's HVAC (heating/ventilation and air conditioning) system five years from now? What is our best estimate of next year's food and beverage revenue? Type of Budget
I have a finance team at work. As the year progresses, they need to maintain a record of cash flow and expenditure. What will they be required to do as a first step to building a budget? Question 1Select one: A. Find out the balance sheet of the company B. Find the profit and loss for the previous year C. Identify the expenditure and demand along with the cash flow of the company D. Build an income and expenditure statement Incorrect
Prioritizing Expenses for a Company Website Part 1: Select a website for a local small business. Examine it carefully. If you were to improve your selected website, how would you prioritize your budget? Begin by listing everything that went into making the website. Decide which elements need improving. Then, rank them from 1-5, for example, where one is the highest priority (i.e. most money would be spent) and 5 is the lowest priority (i.e. least amount of money would be allocated). Part 2: Now, you need to decide how to promote the company using this website most effectively. You have a $100,000 budget—determine how you allocate the budget using the template that follows.
This practice exercise explores simple cash budgets. Create a spreadsheet file that contains a simple monthly cash budget for the next year for the business described in the following scenario: Assume you are thinking about starting a business and would like to forecast your cash needs for the next six months. You expect sales to be approximately $30,000 per month for the first 12 months and your purchases to support sales will be approximately 60% of sales. You anticipate about 20% of your sales will be cash and 80% collected the following month. Your supplier has agreed to extend credit for 70 days at no cost (i.e. you will pay your bills on a two month lag). Your monthly expenses for rent, wages, utilities, and so forth will be approximately $3,500 per month. Identify which of these are fixed costs and which ones are variable costs. You have deposited $15,000 in a checking account to begin your operations and would like to maintain a minimum balance of $5,000 in that account. After…
(Short-Term Finance and Planning) You are hired as a financial manager and your first task is to establish the cash budget of your firm. You gathered the following information. The firm receives all income from sales Sales estimates (in millions) Q1 = 1,000; Q2 = 1,250; Q3 = 1,500; Q4 = 2,000; Q1 next year = 1,200 Accounts receivable Beginning receivables = $3000 Average collection period = 45 days Accounts payable Purchases = 60% of next quarter’s sales Beginning payables = 1,200 Accounts payable period is 45 days Other expenses Wages, taxes, and other expense are 25% of sales Interest and dividend payments are $100 A major capital expenditure of $500 is expected in the second quarter The initial cash balance is $100 and the company maintains a minimum balance of $50
Given the information below, answer questions 1-3. • Assume you are working on budgeting for the room department of your hotel. • Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2019. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year. • Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $246,000 during 2019. For 2020, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2019. • Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2019. For 2020, this fixed cost will increase by 2% due to the expected increase in living expenses in this area. 1. What will be the budgeted ‘Room Revenue (Sales)’ for 2020 ($)? Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer. Type your answer as a whole number (e.g., 200000).
First Discussion Board Post (due Wednesday) In your internet browser, search for the terms "Participatory Budgeting" and "Budgetary Slack." Review a few of the results so you understand what the terms mean and the implications when used by managers. Then, read the "Ethics Challenge" near the end of the Master Budgeting chapter problems in your textbook. Required: Share your responses to the following questions with your classmates. Based on your reading: 1. Do you think Granger Stokes is using budgets appropriately? 2. What sort of behavioral consequences may occur as a result of the way budgets are used at Prime Drive? 3. What would you do if you were in Keri Kalani's position?
1. Prepare A Budgeted Statement Of Cash flow? Analyze, Think, Communicate ATC 7-1 Business Applications Case Preparing and using pro forma statements Mary Helu and Jason Haynes rccently graduatcd from the same university. After graduation thcy decided not to scck jobs at cstablishcd organizations but, rather, to start thcir own small busincss hoping they could have morc flexibility in their personal livcs for a few ycars. Mary's family has opcrated Mexican restaurants and taco trucks for the past two gencrations, and Mary noticcd thcre were no taco truck Scrviccs in thc town where their university was located. To reduce the amount they would need for an initial investmcnt, they decided to start a busincss operating a taco cart rathcr than a taco truck, from which they would cook and scrve traditional Mexican-stylc strect food. They bought a used taco cart for $18,000. This cost, along with the cost for supplics to get startcd, a business license, and street vendor licensc brought their…

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