Homework
Case Analysis: Xample Manufacturing Annual Draft Operating Budget
Prior to beginning work on this assignment, read A Budget Model for a Small Manufacturing Firm (1995).
Review the Xample Manufacturing Case below. Using the information and the financial data derived in the Xample Case, and after reading Fleming's article, create an annual budget in draft form divided into four periods (Quarter 1, Quarter 2, Quarter 3, and Quarter 4) using the provided budget template.
Xample Manufacturing Case:
Consider the following case scenario: Imagine you are a manager of a small plastic parts manufacturing contracting business making parts under contract to electronic consumer goods industry and defense industry companies, and you are in charge of developing a projected annual operating budget.
Your budgetary figures are as follows: For fiscal year 2019, your firm received a $3 million contract from Sony to provide small parts for its current Ultra HD Blu Ray Player, as well as various contracts totaling $1.75 million from other business. Xample also has an $180,000 annual contract from Boeing, and a contract for small plastic parts contract from Ratheon totaling $1.6 million annually.
Your chief financial officer (CFO) has provided you with the following annual expenses:
Xample Manufacturing Expenses
Annual Salaries $1.63 million
Annual Benefits $ 245,000
Annual Rent $ 760,000
Annual Insurance $ 45,000
Annual Depreciation $ 780,000
Annual Overhead $ 180,000
Annual Supplies $ 96,000
Annual Raw Materials $ 2.6 million
Using the Xample Manufacturing Operating Budget Template,
o Complete a 12-month operating budget in which you include the projected net profit (or loss). Turn in with the summary,
After completing the budget template, Write a two- to three-page summary including the following:
o Explain the process for creating an operating budget and its importance.
o Describe how revenues and expenses are grouped for planning and control in the financial statements.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Operating-Budget-Template.rar