Project 4
1. Project 4
1.9. Page 4
Project 4: Budgeting
Time to Work
Create a new folder in your FIN1030 Course Folder called Project 4 Training Room 2. All of the answers to the following questions must be saved in this folder for your teacher to mark.
Complete Assignment 1 and submit it to your teacher for assessment. Check with your teacher to see if it is necessary to complete the optional assignment.
Assignment 1
Step 1: Open Partial Budgeted Income Statement, and save it in your course folder as “Assignment 2 Budgeted Income Statement.”
Step 2: Review the following income statement and complete the Actual column of the budgeted income statement.
Microsoft product screen shot(s) reprinted with permission from Microsoft Corporation.
Step 3: The owner of Cornucopia Services is projecting an increase in sales of 15% and an increase in expenses of 10% for the next fiscal period. Complete the budgeted income statement, and remember to save the statement when you have finished.
Step 4: Open Cash Budget Template, and save it in your course folder as “Assignment 1 Cash Budget.”
The end of the fiscal period balance sheet revealed that the company had $59 000.00 in the cash account.
The company estimates that about 70% of the customers pay cash. The other 30% are accounts receivable customers who will pay cash in the next fiscal period.
Bank loan payments are $1250.00 per month, and the mortgage payments are $2500.00 per month.
The company will pay 20% of the last budget period’s expenses.
The company anticipates that it will pay 80% of its expenses in cash for this fiscal period.
Step 5: Using the budgeted income statement, complete the cash receipts section and remember to save the statement when you have finished.
Assignment 2 (optional)
Check with your teacher to see if you need to complete the following optional assignment.
Step 1: Open Partial Budgeted Income Statement, and save it in your course folder as “Assignment 2 Budgeted Income Statement.”
Step 2: Review the income statement below, and complete the Actual column of the budgeted income statement.
Microsoft product screen shot(s) reprinted with permission from Microsoft Corporation.
Step 3: The owner of Simone’s Office Services is projecting an increase in sales of 25% and an increase in expenses of 10% for the next fiscal period. Complete the budgeted income statement, and remember to save the statement when you have finished.
Step 4: Open Cash Budget Template, and save it in your course folder as “Assignment 2 Cash Budget.”
The end of the fiscal period balance sheet revealed that the company had $45 298.00 in the cash account.
The company estimates that about 60% of the customers pay cash. The other 40% are accounts receivable customers who will pay cash in the next fiscal period.
Bank loan payments are $1050.00 per month, and the mortgage payments are $2250.00 per month.
The company will pay 20% of the last budget period’s expenses.
The company anticipates that it will pay 80% of its expenses in cash for this fiscal period.
Step 5: Using the budgeted income statement, complete the cash receipts section and remember to save the statement when you have finished.