Details: So your new accountant could practice the budgeting process in your for-profit company, you want her to compare budgeting methods for two different kinds of entities.
You give her information for a for-profit and for a nonprofit entity and ask her to complete the following:
• Given the assumptions and data in this Excel file:
o complete next year's budgeted figures for each entity within the same Excel worksheet (yellow cells)
o include your reasoning for most of the budgeted figures (green cells)
Because of a bad recession, government grants were not cut by 50% but are eliminated completely for next year's budget and fundraising efforts-despite an increase in expenses-did not improve at all.
o Write a memo of 300-400 words explaining what you would recommend that the museum manager do.
Please submit your assignment.
Objective:
• Understand accounting and reporting requirements for governmental entities
• Identify specific transactions related to governmental entities
• Evaluate specific transactions related to not-for-profit organizations