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Budgeting and Control
In 2012, Barney and Co. saw a decrease in sales of 20%. The company had also recently purchased equipment to increase productivity, but has incurred the additional expense of paying back the loan for equipment. The loan makes up for 5% of the company's total expenditures for the period (1 year).
In a 4-5 page paper, please provide the following:
• Three potential budgeting solutions in response to a decrease in sales (Use specific budget types to address this question).• Include how the company plans to accommodate for the decrease in sales and create a budgeting plan for 2014.• Also give at least one suggestion for maximizing the budget in response to the equipment purchase.• Be sure that the paper has no spelling or grammatical errors.
The Managing Director, Tom Copeland has asked you to implement a process to monitor expenditure and income. He has asked you to prepare a spreadsheet to capture and compare actual income and expenditure to budgeted figures.
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