Our Services

Get 15% Discount on your First Order

[rank_math_breadcrumb]

Budget Analysis

See attachments, needs to be done in Excel and PPTX

1. Needs to be done in Word and PowerPoint

2. Incremental Analysis and Break-Even Analysis needs to done only


Scenario:
  Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less rigid materials and are more true to life than those of competitors. The company inventors, Mr. and Mrs. Lee, are going to pitch their idea to Shark Tank in a few months, but first they need to have a better understanding of the business financials. The Lee’s are already creating and selling their product from their home-based office and work area. They know what costs are involved with making the bobble heads on a small scale, but they don’t have an understanding of financial figures beyond basic costs. They need you to make sense of various financial figures for them. 


The Project:
  There are several financial analysis tasks involved with this project, which are outlined below (#1-8). Once you have worked through each task, you will need to produce a PowerPoint presentation to introduce and highlight your findings. Your PowerPoint presentation should include a title slide, an executive summary slide(s), subsequent slides that illustrate your findings, any additional recommendations that you would like to make, and a conclusion slide. The PowerPoint presentation should be approximately 15-25 slides in length. Include notes in the presentation as needed.  You will also need to create a written executive summary (one page in length). Your final submission will include the PowerPoint presentation, the executive summary, and an Excel file with relevant calculations. The specific financial analysis tasks and related information are listed below (#1-8).

1. 
Financial Statements:  Develop an Income Statement for 20XX, Cash Flow Statement for 20XX, and Balance Sheet 
as of the end of 20XX based on the data provided below for year 20XX. All sales are collected when the sale is made and all expenses are paid when the expense is incurred. Explain the purpose of each financial statement.

a. Income Statement Data for 20XX:

• Units produced and sold = 420

• Sales ($80 per unit selling price) = $33600

• Cost of goods sold ($30 per unit, all variable costs) = $12600

• Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves)

• Advertising fees =$2000

• Bank fees = $150

• Phone/internet = $1200

• Shipping ($3 per unit) = $1260

• Utilities = $900

• Office supplies = $800

• Interest expense on note payable = $350

• Depreciation expense (straight line) = $800

• Income tax rate = 26 %

b. Other Financial Data for 20XX:

• Proceeds from sale of equipment = $3000.  The equipment originally cost $1000 and had accumulated depreciation of $200.

• Purchase of equipment = $1600 (The machine is purchased on the last day of 20XX so no depreciation expense is recorded.)

• Repayment of note payable = $5000

• Consider any data relevant from the income statement.

c. Balance Sheet Data for 
Beginning of 20XX:

• Cash and cash equivalents = $10000

• Accounts receivable = $0 (Cash is received at time of sale)

• Raw materials inventory = $10500

• Equipment = $5000 (This includes the $1000 cost of the equipment sold in 20XX).

• Accumulated depreciation = $1,000 (This includes the accumulated depreciation of 200 for the equipment sold in 20XX.

• Accounts payable = $0 (Cash is paid at the time of purchase.)

• Note payable = $5000 (This is the note payable which is repaid in 20XX)

• Common stock = $15000

• Retained earnings = $4500

 

2. 
Financial Ratios:  Calculate the following financial ratios and explain the meaning of the results.

a. Net Profit Margin

b. Quick Ratio

c. Debt-to-Equity Ratio

3. 
Cost Classification:  The Lee’s have provided you with the following costs and relevant information that are assumed for year 20XY. 

A. Classify each of the costs (a. through j.) below under C. as a variable cost or a fixed cost. 

B. Explain the importance of distinguishing between variable and fixed costs.  

C. Prepare a budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information. 

a. Cost of goods sold of $35 per unit

b. Labor = $400/month

• One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.

c. Advertising fees = $3,000

d. Bank fees = $200

e. Phone/internet =  $150 per month

f. Shipping = $3 per unit

g. Utilities = $100 per month

h. Office Supplies = $900

i. Conference Exhibitor Fee = $3000

j. Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200

4. 
Net Present Value:  The Lees are considering adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $52000. It is expected that the new piece of equipment will lead to cash flows of $17000, $23000, and $30000 over the next 3 years. If the appropriate discount rate is 8%, what is the NPV of this investment? Explain the findings. 

5. 
Budget Preparation:  The Lees believe that production and sales could double after being on Shark Tank which is scheduled in December of 20XY. They want to be prepared for this. Based on the budgeted income statement calculated above for 20XY, create a new budgeted income for 20XZ assuming that the production and sales is double the level of 20XY.

6. 
Incremental Analysis:  If production does increase dramatically after their presentation on Shark Tank, the Lees will need more space for production. They have two options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, there rent will be $2400 per month and utilities are estimated to cost an additional $350 per month. Their second option, Option 2, is to rent a smaller storefront space that is also nearby. The storefront rent is $1950 per month. However, utilities will likely only cost an additional $250 per month. They want to compare their options over one year’s time (since each rental contract is a 1 year commitment). What is the incremental analysis if the Lees choose Option 1 over Option 2? 

7. 
Break-Even Analysis:  You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Use the information in task #3 except 
do not consider taxes.)

8. 
Contribution Margin:  Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?

 

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Financial Management Question

I need help with questions g, o, p, v, and w. However, I have the following answers correct: a: 0 b: 0 c: 4,000,000 d: 0 e: 600,000 f: 200,000 h: 1,000,000 i: 200,000,000 j: 10,000,000 k: 4,500,000 l: 400,000,000 m: 400,000,000 n: 50,000 q: 0 r: 1,000,000 s: 7,500,000

592

You will be completing the following components of your Course Project Part 4 deliverables. This deliverable is worth 100 points. 1. Earned Value Analysis (20 points) 2. Project Status Communication (20 points) 3. Final Course Project Summary (60 point Component Deliverable Tasks Earned Value Analysis 1. Set the project status

595W5

· Cover Page: Include your name, the project or company name, and the course name and number. · Quantitative Risk Analysis: Measure the risk impact using specified project management techniques that align quantitative risk factors to the qualitative risk analysis. You can add monetary or time elements to the risks

Impact Assessment

Provide overview of your social equity issue Describe the details and process for an equity impact assessment of your policy solution Persuade readers why an impact study is needed for the your recommendation to your social equity issue

Memorandum

See attached. Has template to be used with instructions.  Company Name Memo To: From: Date: Re: CEO Compensation ESG Metrics [Introduction] Metric Name Description Goals Measurement [Conclusion] 1 2

eco

Midterm ECO 562 Due: 3/30 at 11:59pm on D2L [40 Points] 1. Suppose that you are interested in determining the effect of number of hours worked on earnings. The Sheet “Question 1” on dataset “Midterm Data.xlsx” consists of the earnings, working hours, and productivity of 40 workers. wkearns: avg. weekly

Week 4 HRMD

See attached Unit 4 Assignment – HRMD 620 Case Study The company operates about 1,500 convenience stores. A sales assistant at one of the company’s stores was murdered while on duty on the second shift. The murder was widely publicized, and employees complained of inadequate security measures. As a result

Business Finance – Management homework

see attached Homework 1: 1 page with 2 references Describe a healthy SRM relationship and include support to justify your response. Homework 2: 2 pages with at least 2 references 1. Read:  What is a Supplier Relationship and Why Does it Matter?  /content/enforced/172243-co_SCM-530-MBOL1-2025SP2/What is SRM and why does it matter.pdf

GM MOTORS Free cash flow estimation and discounted cash flow valuation

 GM MOTORS  Free cash flow estimation and discounted cash flow valuation As discussed in class, estimate free cash flow to firm and free cash flow to equity for your company. Using WACC estimates in part-I, estimate fair value of stock using discounted cash flow methodology. Which of the two approaches

Business Finance – Accounting Proforma Assignment for GM Motors

 GM Motor – Company Part 1: WACC Calculation Using concepts learned during the class, estimate the weighted average cost of capital (WACC) for your company. The process involves several key steps: Cost of Equity Calculation using CAPM Model: Estimate beta for your company using regression analysis. Estimate beta using daily

Pro Forma Analysis

  Proforma Assignment Submit Here Part 1: WACC Calculation Using concepts learned during the class, estimate the weighted average cost of capital (WACC) for your company. The process involves several key steps: Cost of Equity Calculation using CAPM Model: Estimate beta for your company using regression analysis. Estimate beta using

help

Challenges Facing Healthcare Organizations This is an APA formatted paper with a title and reference page, appropriate headings and paragraphs, introduction and conclusion, in-text citations. The required information includes the following: 1. Challenges Facing Healthcare Organizations a. Identify and analyze common challenges encountered by healthcare organizations (e.g., rising costs, workforce

strategic healthcare management

assistance Strategies for Effective Healthcare Management a.    Discuss the importance of strategic planning and effective leadership in healthcare management. b.    Explore different leadership styles and their applicability in healthcare settings. The above information should be written as an APA formatted paper. Please include a title page, a topic

Business & Finance Proforma Assignment for GM Motors

  Part 1: WACC Calculation Using concepts learned during the class, estimate the weighted average cost of capital (WACC) for your company. The process involves several key steps: Cost of Equity Calculation using CAPM Model: Estimate beta for your company using regression analysis. Estimate beta using daily prices for past

risk management discussion week 4

This Week’s Topic: Physician Education, Patient Safety, and Board, CEO and Clinical Staff Roles  1. Describe six different subjects a risk manager should include in a curriculum designed for physicians to engage them in patient safety practices. Describe what might be included in each of these modules. Before you do

Management Discussion 4

In Chapter 10, it discusses high-performing team leadership. With any team, there are always potential conflicts. Barrett discusses at least four types of team conflict. Using the Barrett text and at least one article, discuss at least one type the textbook mentions AND provide an approach(es) to handle that type

Audio and video Media Production Techniques

   This activity will help you meet these educational goals: · Content Knowledge—You will create shot list based on your script, and shoot the required footage for your film. · Inquiry—You will perform an investigation in which you will communicate your results in written form. · 21st Century Skills—You will

Report for a small island

need to summerize monthly reports and achievement in one yearly report. Given that we are at the end of the budget year, this report should serve as your  end-of-year report rather than a standard monthly report. Please ensure the report includes: · Key achievements from the past year · Challenges and concerns faced