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Baseline budgeting method is entrenched in the public sector as the primary way to prepare for the spending side of the operating budget for the next fiscal year.
Question 1: What is the basic format for coming up with a baseline budget for the new fiscal year?
Question 2: What is one major advantage of baseline budgeting that makes it so popular in the public sector?
Question 3: What is one major disadvantage of baseline budgeting?
Question 4: Please discuss two budgetary reforms aimed at addressing the disadvantage of baseline budgeting. You need to discuss: 1) how these two reforms attempt to address the disadvantage of baseline budgeting, at least in a conceptual way; and 2) the reason why each of these two budgetary reforms fails to replace baseline budgeting as the primary method for operating budget preparation. You need to discuss the reason separately for the two reforms.
Question 5: Why baseline budgeting method is not applicable to the preparation for a capital budget? And what is an alternative method to prepare for the capital budget? You need to discuss in detail the method for capital budget preparation.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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