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Question - Business Plan- Budgeting - Financial Statement Analysis: By studying the role of accounting information in a business, you convince yourself that it is now the time to start on embarking a new small business. For this task, it is recommended to choose a simple trading or service business with a single product cost such as the Campus Fruit Juice Truck or other small businesses such as a coffee, doughnut or hot dog stand, soccer ball shop or a headphones shop, car wash, music studio/tuition, mini-golf hire, among others.
Prepare a business plan and the first quarter Cash Budget for this business, create transactions, prepare a column worksheet for each month for the first two months of the business operation, and develop financial statements and finally analyze your business performance. The following are the detailed requirements.
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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