Reference no: EM132994889
Question - Implementation of a company's strategic plan often begins by determining management's basic expectations about future economic, competitive, and technological conditions, and their effects on anticipated goals, both long-term and short-term. Many firms at this stage conduct a situational analysis that involves examining their strengths and weaknesses and the external opportunities available and the threats that they might face from competitors.
After performing the situational analysis, the organization identifies potential strategies that could enable achievement of its goals. Part of this process involves business managers creating budgets to plan for future operations, create benchmarks to measure progress, and maintain necessary accounting controls.
A. The majority of literature that has used examples to describe a master budget have been limited to manufacturing companies. These companies tend to have comprehensive operating budgets and therefore serve as a good starting point in developing a master budget. However, budgeting is equally vital in all types of businesses, manufacturing as well as non-manufacturing organizations.
Required - Clearly discuss what operating budgets look like for merchandising, service, and not-for-profit organizations.
B. Assume you are the manager of the computer division of High Tech Retail, Inc. You are asked to help the company prepare budgeted income statement for the computer division before the start of each fiscal year. At the completion of each fiscal year, division managers receive a bonus equal to 10 percent of actual net income in excess of budgeted net income.
Required - Describe the ethical conflict facing you as division manager when asked to help create the budgeted income statement for your division.
What quarterly payments will reduce the balance
: The interest rate on a loan of $100,000 is 7.5% compounded quarterly. What quarterly (ending) payments will reduce the balance to $75,000 after 5 years
|
What will be the amount in Dallas capital account
: The capital balances before the sale were 240,000 and 360,000 respectively. What will be the amount in Dallas' capital account
|
Explain the weighted average cost of capital
: Explain the weighted average cost of capital (WACC) and its significance and include hypothetical examples for better clarity
|
What is a new policyholders probability
: The annuities pay $60 000 at the end of each year while the policyholder is alive. What is a new policyholder's probability of dying in Year 3
|
Clearly discuss what operating budgets look like
: Clearly discuss what operating budgets look like for merchandising, service, and not-for-profit organizations
|
What is the net present value of this project
: From your dealership you expect to generate annual revenues of $700,000 and have operating expenses of $200,000, What is the net present value of this project
|
Determine the number of current ratio as of December
: The following financial information is for Chesapeake Corporation are for the fiscal years - Determine the number of current ratio as of December
|
What is the management accountant role in setting price
: Management decided that the required markup is 40%. What is the management accountant's role in setting price of a new product
|
What equal monthly payments will pay off the debt
: Lynn Anglin owes a debt of $40,000 from the purchase of her new sport utility vehicle. What equal monthly payments will pay off the debt
|