Review the Xample Manufacturing Case below. Using the information and the financial data derived in the Xample Case, and after reading Flemingâ€™s article, create an annual budget in draft form divided into four periods (Quarter 1, Quarter 2, Quarter 3, and Quarter 4) using the provided budget template.
Xample Manufacturing Case:
Consider the following case scenario: Imagine you are a manager of a small plastic parts manufacturing contracting business making parts under contract to electronic consumer goods industry and defense industry companies, and you are in charge of developing a projected annual operating budget.
Your budgetary figures are as follows: For fiscal year 2019, your firm received a $3 million contract from Sony to provide small parts for its current Ultra HD Blu Ray Player, as well as various contracts totaling $1.75 million from other business. Xample also has an $180,000 annual contract from Boeing, and a contract for small plastic parts contract from Ratheon totaling $1.6 million annually.
Your chief financial officer (CFO) has provided you with the following annual expenses:
Xample Manufacturing Expenses
Annual Salaries $1.63 million
Annual Benefits $ 245,000
Annual Rent $ 760,000
Annual Insurance $ 45,000
Annual Depreciation $ 780,000
Annual Overhead $ 180,000
Annual Supplies $ 96,000
Annual Raw Materials $ 2.6 million
Using the Xample Manufacturing Operating Budget Template Download Xample Manufacturing Operating Budget Template ,
Complete a 12-month operating budget in which you include the projected net profit (or loss). Turn in with the summary,
After completing the budget template, please write a two- to three-page summary including the following:
Explain the process for creating an operating budget and its importance.
Describe how revenues and expenses are grouped for planning and control in the financial statements.
The Case Analysis: Xample Manufacturing Annual Draft Operating Budget paper
Must be three to four double-spaced pages in length (not including title and references pages and formatted according to APA Style (Links to an external site.) as outlined in the Writing Centerâ€™s APA Formatting for Microsoft Word (Links to an external site.) resource.
Must include a separate title page with the following:
Title of paper in bold font
Space should appear between the title and the rest of the information on the title page.
Name of institution (University of Arizona Global Campus)
Course name and number
Must utilize academic voice. See the Academic Voice (Links to an external site.) resource for additional guidance.
Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
For assistance on writing Introductions & Conclusions (Links to an external site.) as well as Writing a Thesis Statement (Links to an external site.), refer to the Writing Center resources.
Must use at least two scholarly sources in addition to the course text.
The Scholarly, Peer-Reviewed, and Other Credible Sources (Links to an external site.) table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
Must document any information used from sources in APA Style as outlined in the Writing Centerâ€™s APA: Citing Within Your Paper (Links to an external site.) guide.
Must include a separate references page that is formatted according to APA Style as outlined in the Writing Center. See the APA: Formatting Your References List (Links to an external site.) resource in the Writing Center for specifications.
Added Guidance for Week Two Paper
As we enter the weekend and each of you begin organizing and writing your week two paper â€œCase Analysis: Xample Manufacturing Annual Draft Operating Budgetâ€ (assignment specifics below), I thought it important to provide some additional guidance in respect to what I expect your paper to include and not to include.
This assignment is about the drafting an annual budget across the four quarters of the year using the provided template and writing a brief that explains the budgeting process while describing how revenues and expenses were used to forecast net revenue for each quarter. I also recommend discussing in the two to three page brief how budgets can be used to control processes in the business and how variables (in each income and expense category) that may occur during the budget year may communicate the need for corrective action during the operating year. Make sure that the completed budget template is incorporated in full as a part of your submission (note that the budget template is in addition to the two to three pages brief).
Your paper must incorporate a minimum of two scholarly sources (must use the AU Library or sources suggested in the â€œFinding Sourcesâ€ announcement posted in the Announcement section of the main classroom) plus the textbook. Sources from encyclopedias including Wikipedia, newspapers, Google, popular magazines, etc. are not acceptable. Trade journals, published research reports, and monographs (books from reliable publishers) are acceptable. If you need help connect with an UAGC librarian or even me.
Follow APA 7th edition guidelines in the preparation of your two to three page manuscriipt. For more information on APA, refer to the UAGC Writing Center.
Remember, the paper is not about you personally despite the assignment descriiption. Therefore, do not include personal pronouns (I, me, my, etc.) in the body of your text. Instead, write the paper as a plan you expect to follow and do so in a third person writing style.
Keep in mind that I submit every paper to Turnitin to review and evaluate content. Doing so allows me to see if your paperâ€™s content and its sources correctly attribute the contributions of others.
If you have questions, please ask. You are far better off asking questions in advance than asking forgiveness later.