26 Apr You are the managerial accountant at Reliable Company. You have been assigned to support the marketing department and manage its master budget. The
You are the managerial accountant at Reliable Company. You have been assigned to support the marketing department and manage its master budget. The marketing department is responsible for the following:
- Managing the firm's marketing
- Hiring subcontractors
- Selling the consulting expertise to smaller outside firms
The department's expenses are as follows:
- Salaries and benefits of $48,000/month
- Web site operations of $21,000/ month
- Online advertising expenses of $15,000/month
- Miscellaneous expenses of $3,500/month
The sales forecast for its consulting services are as follows:
- April: $190,000
- May: $200,000
- June: $205,000
The department pays a sales commission of 5%, and this is paid in the following month. Subcontractor expenses are estimated at 45% of sales and are paid the month after they are billed. Consulting fees are collected 20% in the month of sale, 70% in the following month, and 10% in the second month following sale.Refer to the attached schedules.Develop a master budget for the marketing department.This task includes the following:
- Completing the attached schedules for a master budget for the marketing department
- Supporting schedules for cash disbursements and collections
Analyze additional needs and resources based on those budgets. Make recommendations based on those budgets.Respond to the following for this assignment:
- Develop the marketing department's master budget.
- Prepare a schedule of expected cash collections.
- Make recommendations based on those budgets.
Please click on the following link to access a template to use for this assignment
Using the schedule template provided, complete the marketing department’s master budget and schedule of expected cash collections. In a 4-page report, provide your recommendations to support the marketing master budget. Submit both documents to complete the assignment. Please use APA formatting requirements for the word document.Submitting your assignment in APA format means, at a minimum, you will need the following:
- Title page: Remember the running head. The title should be in all capitals.
- Length: 5 pages minimum
- Abstract: This is a summary of your paper, not an introduction. Begin writing in third person.
- Body: This begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 5 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
- Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
Budget Data
| Reliable Company Marketing Department Master Budget | |||
| Data | April | May | June |
| Budgeted consulting revenues | $ 190,000 | $ 200,000 | $ 205,000 |
| Less: Sales commissions (5% of sales) | $ 9,500 | $ 10,000 | $ 10,250 |
| Less: Cost of sales (45% of sales) | $ 85,500 | $ 90,000 | $ 92,250 |
| Net consulting revenues | $ 95,000 | $ 100,000 | $ 102,500 |
| Accounts Receivable Collections | |||
| Month of sale | 20% | ||
| Month following sale | 70% | ||
| Second month following sale | 10% | ||
| Monthly Budgeted Expenses | |||
| Salaries and benefits | $ 48,000 | ||
| Web site operations | $ 21,000 | ||
| Online advertising expenses | $ 15,000 | ||
| Other misc. expenses | $ 3,500 | ||
| Accounts Payable Payments | |||
| Month of sale | 40% | ||
| Month following sale | 60% | ||
| Accounts Payable | |||
| Online advertising expenses | $ 15,000 |
Schedules for Students
| Marketing Department Master Budget | |
| June | |
| Consulting Revenues | |
| Less: Commissions | |
| Less: Subcontractor expenses | |
| Net revenues | |
| Expenses | |
| Salaries and benefits | |
| Web site operations | |
| Online advertising expenses | |
| Other misc. expenses | |
| Total expenses | |
| Net department expenses | |
| Expected Cash Collections | |
| June collections on account: | |
| April sales | |
| May sales | |
| June sales | |
| Total cash collections | |
| Expected Cash Disbursements | |
| Salaries and benefits | |
| Web site operations | |
| Other misc. expenses | |
| Online advertising expenses | |
| Sales commissions (5% of sales) | |
| Cost of sales (45% of sales) | |
| Total cash disbursements | |
| Net impact on cash | |
,
Title of the Document
Student’s Name
American Intercontinental University
Running head: STUDENT’S TOPIC
STUDENT’S RESEARCH TOPIC 4
Introduction (1/2 to 3/4 page)
In the introduction, paraphrase the below scenario using APA format and describe what steps you will take to prepare the master budget for June.
You are the managerial accountant at Reliable Company and are part of the organization’s budgeting committee. You have been assigned to support the marketing department and manage its master budget. The marketing department is responsible for the following:
· Managing the firm's marketing
· Hiring subcontractors
· Selling the consulting expertise to smaller outside firms
The department's expenses are as follows:
· Salaries and benefits of $48,000/month
· Web site operations of $21,000/ month
· Online advertising expenses of $15,000/month
· Miscellaneous expenses of $3,500/month
The sales forecast for its consulting services are as follows:
· April: $190,000
· May: $200,000
· June: $205,000
The department pays a sales commission of 5%, and this is paid in the following month. Subcontractor expenses are estimated at 45% of sales and are paid the month after they are billed. Consulting fees are collected 20% in the month of sale, 70% in the following month, and 10% in the second month following sale.
Background (1/2 page)
Discuss the benefits and limitations of the master budgeting process, the budgets included in the master budgeting process and the steps that the marketing department will take to prepare the master budget.
Scenario Analysis (1 page)
Market Department Master Budget – June (complete the below schedules)
|
June |
|
|
Consulting Revenues (Chapter 20 – PAGE 1005) |
|
|
Less: Commissions |
|
|
Less: Subcontractor expenses |
|
|
Net revenues |
|
|
Expenses |
|
|
Salaries and benefits |
|
|
Web site operations |
|
|
Online advertising expenses |
|
|
Other misc. expenses |
|
|
Total expenses |
|
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Net department expenses |
|
|
Expected Cash Collections (Chapter 20 – PAGE 1008-1009) |
|
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June collections on account: |
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April sales |
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May sales |
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June sales |
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Total cash collections |
|
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Expected Cash Disbursements (Chapter 20 – PAGE 1009-1010) |
|
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Salaries and benefits |
|
|
Web site operations |
|
|
Other misc. expenses |
|
|
Online advertising expenses |
|
|
Sales commissions (5% of sales) |
|
|
Cost of sales (45% of sales) |
|
|
Total cash disbursements |
|
|
Net impact on cash |
|
Budget Based Recommendations ( ½ to 2 pages)
Use the guiding questions below to develop recommendations based on the June budget to help the manager of the marketing department
· How does the master budget help the manager understand the company’s external environment and the impact the environment have on the marketing department?
· How does the budget help the manager with forecasting?
· How does the budget help the marketing department coordinate their needs with other departments?
· How can the budget be used to evaluate the marketing department’s performance?
Conclusion (1/2 page)
In this section, summarize the results of your analysis and the overall uses and limitations of the budget to the marketing department
References
Double space do not indent, but do alphabetize. Use APA style. If the citation carries over to the next line, the lines will automatically be in hanging indent when you use the following template (overwrite the first two and when you hit <enter> twice after that, the references will fall in hanging indent naturally).
Applebaum, B. C., Zuckerman, M. Y., & Wu, X. (2014). Title of article in sentence case: Subtitle in sentence case. Journal in Title Case, X, 45-56.
O’Hara, C. (1986). Name of book in sentence case: Subtitle in sentence case. City, ST: Name of Publisher.
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