...CASE STUDY 3—Cash Budget Template SCHEDULE OF EXPECTED CASH COLLECTIONS FROM CUSTOMERS Credit Sales May June April 94,000 x 70% 65,800 May 89,500 x 30% June 89,500 x 70% 26,850 62,650 June 75,000 x 30% 22,500 Total Cash Collections 92,650 85,150 SCHEDULE FOR EXPECTED PAYMENTS FOR PURCHASE OF INVENTORY Inventory purchases May June April 195,000 x 60% 117,000 May 135,000 x 40% June 135,000 x 60% 54,000 81,000 June 63,000 x 40% 25,200 Total Payments for Inventory Purchases 171,000 106,200 LBJ Company Cash Budget For the Two Months of May and June May June Cash balance $20,000 $20,000 Add: Receipts Collections from customers 92,650 85,150 Sale of plant assets 33,000 Sale of new common stock 50,000 Cash sales 75,000 57,000 Total receipts 200,650 192,150 Total Available Cash 220,650 212,150 Less: Disbursements Purchases of inventory 171,000 106,200 Operating expenses 15,000 15,000 Selling and administrative expenses 10,150 10,150 Equipment purchase 35,000 Dividends 20,000 Total disbursements 231,150 151,350 Excess (deficiency of available cash over disbursements) (10,500) 60,800 Financing Borrowings 30,500 Repayments (31,008) Ending cash balance $20,000 29,792 Please answer the three qualitative questions on the next tab called Qualitative...
Words: 251 - Pages: 2
...Management Control Systems in the Hospitality Industry 2011-06-01 BUSP02: Master Thesis in Accounting and Management Control Richard G. Sicari and Fredrik J. Söderlund Per-Magnus Andersson Hospitality Industry, Management Control Systems, Performance Measurement, Contingency Approach, Multiple Case Study The purpose of the thesis is to describe and analyze the use of management control systems in the hospitality industry. Purpose: Methodology: The study is mainly a descriptive, multiple case study based on deductive reasoning. However, explanatory elements occur. The nature of the study is to a large extent qualitative and is primarily based on interviews and analysis of current management control tools. The analytical strategy includes pattern matching, explanation building and cross-case synthesis. Theoretical Perspectives: The main text editions included are Anthony and Govindarajan (2003 & 2007), Lindvall (2001), Merchant and Van der Stede (2007) and Samuelsson (2004). Furthermore, the use of management control systems in the hospitality industry is examined using literature such as Harris (1995), as well as other articles. Empirical Foundation: There are four units of analysis included in this study: (1) BrewPub København; (2) Färs & Frosta Sparbank Arena; (3) Kulturmejeriet and; (4) Scandic Hotels. This organization is divided into three subunits; Scandic Kramer, Scandic Malmö City and Scandic Star Lund. Each organization is described in terms of background, situational factors...
Words: 36462 - Pages: 146
...from the required texts. It will be necessary to complete these readings in a timely manner to be able to contribute to the discussion and answer questions during Virtual Classroom sessions. Students will also receive a series of “Inbox” assignments. These assignments will arrive by Blackboard’s email function (Inbox) and will pertain to an event that is going to affect your budget. You will have to make a decision as to how to incorporate this event into your budget document. Case Studies: ICMA Case Studies will be read, analyzed and discussed during Virtual Classroom sessions. Each student (with at least two partners) will be assigned one of these case studies to present to the class and to initiate and lead the discussion. Students will work in groups of 2 or 3 depending upon class enrollment. All students are expected to read each case study and participate in the discussion – you will be graded on your discussions as well as leading your case study. You will have Group Pages assigned within Blackboard that will enable you to have on-line discussions with your partners for your case study assignment. Exams: You will have three tests during the semester. The test will be given to you at the end of a Virtual Classroom discussion and you will have 1 hour and 15 minutes to complete and return to the professor. Late submissions will have points deducted from test grade. Academic Integrity “Academic integrity is expected of every East Carolina University student...
Words: 918 - Pages: 4
...International Journal of Trade, Economics and Finance, Vol. 1, No. 1, June, 2010 2010-023X Information Technology roles in Accounting Tasks – A Multiple-case Study Maria do Céu Gaspar Alves Abstract—Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs information technology (IT) investments and the rapid pace of technological change. Organizations are responding in different ways and at different rates to the wide range of IT based opportunities and pressures. The purpose of this paper is to focus on the effects of IT related organizational changes on the management accounting function and to contribute to the body of knowledge about to what extent IT affects the ability to solve accounting tasks. The relationship between IT and accounting practices was investigated qualitatively using six case studies and we will measure the impact of IT on accountants’ tasks. The findings suggest a tendency for change and the decentralization of accounting tasks. Index Terms—Accounting, Accounting Information Systems, Financial Documents, Information Technology, Management Information System. I. INTRODUCTION Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs IT investments and the rapid pace of technological change in combination with escalating costs of research and development (Frishamar, 2002). The role of information technology...
Words: 4110 - Pages: 17
...Case study for NutroBalance. Purpose The purpose of this case study is to get you used to incorporating Microsoft Project charts and reports into your project’s progress reports. By now you should be able to work through the mechanics of loading tasks, predecessors, resources, and costs into MS Project. But the real challenge facing project managers is how to interpret the data in MS Project and how to make it “useful” for you and your stakeholders. In this case study you will be given a scenario and asked to load the project information into Microsoft Project. However, the purpose of this case study is bigger than just properly loading the Microsoft Project file. This case study requires you to interpret the MS Project results and incorporate the issues and results in your communication with key stakeholders. Your output of this case study explores the “softer” side of project management, including how to communicate your results to your key stakeholders in a clear and concise manner. The point of the case study is to show you that projects experience change over time, which forces you, the project manager, to modify and adapt your project. This case study is broken into three sections, Sections 1, 2, and 3. In each section you will be given some information on your project and then asked to “respond” to some of your stakeholders. Even though there are three sections in the case study, you will only submit ONE document, due Week 6. This document will include your answers...
Words: 1708 - Pages: 7
...Management Accounting & Control Case Study I (“Winbald”) Abstract: The following Case Study is targeting Budgeting problems of a Profit Centre (Winbald) within a large publicly listed company. Winbald was just acquired and before that, was privately owned. It is June 2013, and Anne Wright, general Manager of Winbald, is worried about her companies’ substantial underperformance against budget. She needs to understand what has happened, and what might be the best courses of action. The Case Study gives several information on the sales and costs budgeting process as well as the final budget of the company. Furthermore, the Case Study requires an evaluation of the budgeting process as well as a final suggestion (based on two possible courses of action) to the management. ------------------------------------------------- Contents Questions & possible solutions to the Case (A) Sales Budget (B) Costs Budget (C) Overall Solution Appendix (Analysis of the Case – notes to solve problems of the Case Study) A I.I Background Information to the Case A I.II Examining the Sales Budget Process ------------------------------------------------- A I.II Examining the Costs Budget Process (link to the Case Study itself) ------------------------------------------------- ------------------------------------------------- Questions & possible solutions to the Case (A) Sales Budget What do you think of the way the sales budget for 2013 was established? What...
Words: 2358 - Pages: 10
...Study Case : Daisy ONG 23 May 2014 Dear Prof Kanesan Those 3 elements can be improved concurrently by the following example of study case, base on personal experience: The owner just received a key for a newly built luxury condo. His intention is to rent the unit out for minimum 5 years investment, and plan to sell the unit off after the log-in period from the bank, escape from paying Property Gain Tax of 30% and to rip the benefit of profit margin. Upon receiving the key, he initiated a project to renovate and refurnish the condo so that it's comfort enough to rent out at the rate desire. In this case, he applies the concept of Triple Constraints. He set the timeline for 2 months to get unit complete and ready to allow the tenant move in; with the cost constraints to RM100K; work to be done (scope) comprises of place all the furniture in 3 bedroom, kitchen and living room, electrical appliances for kitchen, some home decoration in contemporary style. Unfortunately, the potential tenant requested that they require the unit within a month time as they are moving in from overseas and to stay in hotel is not in their budget plan. The owner do not wish to miss the boat, and he accepted and sealed the contract with the tenant, meaning the owner left with 1 month to accomplish the task. By applying the Triple Constraints, the owner are in the situation where time has reduced and with the skills, he needs to be agile to well balance the 3 elements as follows: Time reduces...
Words: 1110 - Pages: 5
...CASE STUDY 3—Cash Budget Template | | | | | | | | | | | | | | | | | | SCHEDULE OF EXPECTED CASH COLLECTIONS FROM CUSTOMERS May | June | 65,800 | | 26,850 | 62,650 | | 22,500 | 92,650 | 85,150 | | | | | | | May | June | 117,000 | | 54,000 | 81,000 | | 25,200 | 171,000 | 106,200 | | | | | | | | | | | May | June | $20,000 | $20,000 | | | 92,650 | 85,150 | 33,000 | | | 50,000 | 75,000 | 57,000 | 200,650 | 192,150 | 220,650 | 212,150 | | | 171,000 | 106,200 | 15,000 | 15,000 | 10,150 | 10,150 | 35,000 | | | 20,000 | 231,150 | 151,350 | (10,500) | 60,800 | | | | | 30,500 | | | (31,008) | $20,000 | 29,792 | | | To see all the figures look above | | | Credit Sales | | | May | June | (94000 x70%) | | 65,800 | | May(89500 x 30%), Jun (89500 x 70%) | | 26,850 | 62,650 | (75000 x 30%) | | | 22,500 | Total Cash Collections | | 92,650 | 85,150 | | | | | | | | | | | SCHEDULE FOR EXPECTED PAYMENTS FOR PURCHASE OF INVENTORY | | | Inventory purchases | | May | June | April(195000 x60%) | | 117,000 | | (135000 x 40%), Jun (135000 x 60%) | | 54,000 | 81,000 | (63000...
Words: 555 - Pages: 3
...interpretive and radical) according to their differing structures, processes and outcomes. Each view, or lens, directs attention to some aspects of politics and away from others, and each has strengths and weaknesses embedded in it. In order to assess whether multiple perspectives on politics can be fruitfully applied simultaneously, we describe and analyze a case of a hospital administration engaged in budgeting games and illusion making. The data for the case were collected using naturalistic inquiry and multiple methods including structured and unstructured interviews, review of documents, observation of meetings and casual interaction facilitated by frequent visits over a ten-month period. The case revolves around the hospital administrators' attempts to deal with what they termed a "disastrous deficit" and the most serious financial situation in the hospital's history. Strategies for dealing with the funding agency and board of directors included the management of meaning and communications about the term "deficit." The three perspectives on organizational politics highlight different dynamics in the case. The interpretive perspective on politics assumes that parties exert influence by constructing the meaning of what others experience. Focusing on a deeper structure of power, the elements of politics which become highlighted are the use of...
Words: 12371 - Pages: 50
...Associate Level Material Appendix D Acre Woods Retirement Community Case Study Acre Woods is a private retirement community with 275 senior residents. Its mission is to improve the quality of life of its residents through physical and emotional care. Sarah Armstrong, Acre Woods’ resident physical therapist, manages the retirement community’s activity program. Recently, Acre Woods added a pool to its rehabilitation center to facilitate resident exercise and aquatic therapy. The residents’ monthly rent was raised to help finance the pool. After the pool was constructed, Sarah immediately contacted the director of Acre Woods, Mark Adams, with concerns that the pool did not meet some important specifications included in the original design, such as nonslip treads on the stairs and improved wheelchair access to the pool area. Mark advised Sarah that the residents would be happy to have a pool, even if it did not incorporate all the requested special features. When Sarah asked why the new ramp and stair treads were not provided even though they were included in the budget, the director remarked that Sarah’s job was to provide physical therapy, not to worry about the budget. Over the next month, four Acre Woods residents had minor falls using the pool stairs. While the accidents were not serious, other residents began to express fears about using the pool. Sarah contacted Mark again to relate resident complaints and to stress the need for pool accessibility and safety improvements...
Words: 1057 - Pages: 5
...Purpose of this case study is to identify and analyze key problems in Training & Development. And find out what are the solutions and recommendations can provide to overcome such problems. Methodology – Find out what are the key problems, issues, in the management, and Training & Development. Findings – • No Policy regarding Training & Development • Training Expenditure was very high • Not Effective in-house trainings • Do not evaluate the trainer • Training Need Analysis is not done • Evaluation of Training is not done • No proper Learning Objectives • Lacking of documentation part. Recommendations – • Develop an organizational Training & Development policy. • Make an allocation of fund to Training & Development in the annual budget. • Conducting HR Audit annually or twice a year. • Analyze the competitors what to they are doing in Training & Development. • Get a survey or feedback from those who participated in the Training & Development programme. • Include Personal Development Plan in Training & Development. • Improve the documentation part. • Get ideas to improve the Training & Development from their agencies of 05 leading global pharmaceutical manufacturers or HR Consultancy firm. • Follow the Training Cycle properly. Problem Statement Question No. 01 What are the key issues identified in the case that could have...
Words: 1757 - Pages: 8
...and Finance, Vol. 1, No. 1, June, 2010 2010-023X 103 Abstract—Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs information technology (IT) investments and the rapid pace of technological change. Organizations are responding in different ways and at different rates to the wide range of IT based opportunities and pressures. The purpose of this paper is to focus on the effects of IT related organizational changes on the management accounting function and to contribute to the body of knowledge about to what extent IT affects the ability to solve accounting tasks. The relationship between IT and accounting practices was investigated qualitatively using six case studies and we will measure the impact of IT on accountants’ tasks. The findings suggest a tendency for change and the decentralization of accounting tasks. Index Terms—Accounting, Accounting Information Systems, Financial Documents, Information Technology, Management Information System. I. INTRODUCTION Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs IT investments and the rapid pace of technological change in combination with escalating costs of research and development (Frishamar, 2002). The role of information technology (IT) has shifted over the last decades (Teng & Calhoun, 1996) to become an important part of how companies manage and control their resources...
Words: 4119 - Pages: 17
...Analysis of Case Study Christopher Rubio Week 4 HCS/483 When ever an organization is thinking of implementing a New It Initiative they must ensure that they are well organized and fully understand the length and time a project may take. According to Cook “ Project failure occurs when a project is significantly over budget, takes must longer than estimated timeline, or has to be terminated because of so many problems have occurred that proceeding is no longer judged to be viable.” With Memorial Health System failed implementation of a CPOE system they had many problems including an over budgeted project, Lack of belief in project, Insufficient leadership support, Failure to respect uncertainty, Failure to anticipate short-term disruptions, and initiative undernourishment. In this paper we will discuss all six of these problems along with give possible solutions to each of them. Failure to respect uncertainty: When the system was finally implemented it was had a lot of bugs in the system. They implemented the system at all of facilities. Because of this as well as a few other issues such as lack of training the system was taken offline and they continued with the old system. The solution to this problem would have been to implement the system in one location instead of the entire hospital. This place can be used as the test facility in which you can do two things. One you can work all the bugs out and the other would be to use it as a training facility where you can send...
Words: 797 - Pages: 4
...Case Study 8 Based on the January through June 2010 cash budget, what is the maximum monthly loss during the six-month planning period? What is the maximum cumulative borrowing balance? (For purposes of this question, disregard any interest payments on short-term bank loans or interest received from investing surplus funds.) Maximum monthly loss is in June: -$60,750. The maximum cumulative borrowing balance is $99,000 in February. What does the monthly cash budget reveal that indicates it should probably be extended beyond the original six months’ horizon? The major cash shortfall in June and the seasonality inherent in the firm’s business indicate that a full year’s cash budget should be developed. The monthly cash budget assumes that cash flows occur simultaneously. This is not realistic, of course. Assume, more realistically, that cash outflows occur early in the month and cash inflows occur later in the month. What do you think would happen to the current cash budget’s predictive powers? (NOTE: This question should be answered without preparing a spreadsheet; it is a ‘thought’ question.) The monthly cash budget would understate the need for funds, since outflows would occur before inflows. If you identified any issues in #3 above, what do you think would resolve them? HINT: There is a specific answer I am expecting, short and sweet, and it is in the case study narrative. Use a daily cash budget to predict cash flows. The need for cash could...
Words: 972 - Pages: 4
...Part 2 of Case Study 3 in ACCT504 2. What are the three sections of a cash budget, and what is included in each section? The three major sections of a cash budget are cash receipts, cash disbursement, and financing. A cash receipt includes cash collections from customers; sales to customers, collecting on credit sales, interest made, etc. Cash disbursement is considered anything that is expected to be paid; administrative expenses, inventory purchases, taxes, etc. Financing is the part of the cash budget that is needed in case of a cash deficiency. If a cash budget falls short, the company can borrow money to make up for that amount. Repayment of the financing then also includes the interest that needs to be paid on that amount, (Weygandt, Kieso & Kimmel, 2002). 3. Why is a cash budget so vital to a company? A cash budget is a tool that can be used to manage a company’s cash. This budget will help a company stay focus by determining an appropriate budget, and help the company see if they can or cannot afford a new investment; or if and how much of financing may be needed. 4. What are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash? The five principles are: Increase the speed of collection on receivables; which means that the company will be able to use those funds quicker. Next, inventory levels should be kept low, which also keeps the cost of storage lower and prevents from...
Words: 406 - Pages: 2
