Free Essay

Jet2 Task 1

In: Business and Management

Submitted By delicat79
Words 1470
Pages 6
Running head: JET2 TASK 2


JET2 Task 2 Budgeting Bonnie Wilson Western Governors University

JET2 TASK 2 A.1. Operational Strengths and Weaknesses A.1. Budget Concerns


Revenue from sales is budgeted too high. In year 8 Competition Bikes experienced a 15% decline in sales revenue, and yet for year 9, they have budgeted for a 3.2% increase. This is likely to be an overly optimistic projection and relies heavily on economic factors outside of the company’s control. Inaccuracy in this projection will have a negative impact on the rest of the budget. Advertising is budgeted too low. The year 9 budgeted amount of $28,412 represents a 3.5% increase over year 8, but it is still almost 20% shy of the amount spent on advertising in year 7 when sales were at an all time high. If the company is to have any hope of realizing its revenue projection, then the amount budgeted for advertising is too low. Executive compensation is budgeted too high. In year 7 executive compensation increased by $50,000 dollars. This made sense then because sales had increased by 33%. However, holding that number steady in year 8 when there was a 15% decrease, and again in year 9 when even a 3.2% increase is optimistic, is not a financially sound budgeting decision. Research and development is budgeted too low. The budgeted amount for year 9 is $85,237. While this represents the same 1.6% of sales revenue that Competition Bikes consistently allots, research and development is an investment in the company’s future. To be forward thinking, the company needs to allocate more funds now in order to stay competitive in the future.

JET2 TASK 2 Other general and administrative expenses are budgeted too high. In year 7 at peak production the amount budgeted was $158,000. In year 8 this amount went up to $170,000, and remains the same for year 9. The company needs to require greater


specificity under this heading to determine the source of increasing costs, with a goal to return to the year seven budgeted amount. A.2. Evaluation of Flexible Budget and Variances A.2.a. Corrective actions for areas of concern based on a variance analysis Activity variances. All of the items listed under variable costs show a favorable variance because the company did not meet its production forecast. The planning budget allotted for 3,510 units to be produced, but the actual output was only 3,423. Since 87 fewer units were produced than expected, the variable costs associated with production are also less, creating favorable variances. Likewise, since fewer units were produced, net sales also decreased, creating an unfavorable variance. Revenue and spending variances. The following table evaluates all of the variances found when comparing Competition Bikes’ flexible budget with actual output. Budget item Variance Evaluation and Recommended Corrective Action Net sales should equal number of units x cost per unit minus 50% that goes to distributors. Competition Bikes could ask distributors for sales information to explain this unfavorable variance. It may represent discounted prices at point of sale by distributors in order to sell more bikes. Even after accounting for decreased production, the direct materials price variance was $300,000 less than anticipated. However, the company lost a third of that in a $100,000 unfavorable efficiency variance. The purchasing manager may have negotiated better prices, which should be praised, but the efficiency variance suggests there was significant waste, which should be investigated. Each unit requires 15 hours of skilled labor, which was budgeted at $20/hour. Since we see a favorable

Net Sales

(20,538) U

Direct materials

(200,000) F

Direct Labor

100,000 U


4 efficiency variance of $50,000, we can assume that the direct labor variance was caused by an hourly labor rate that was higher than what was budgeted, creating an unfavorable direct labor variance. Competition Bikes can avoid this in the future by using accurate hourly wage information when making the budget and anticipating increases for raises as appropriate. The production manager should also look at the skill mix of the staff and use cheaper labor where appropriate. Both price and efficiency variances were unfavorable, creating an overall unfavorable variance for manufacturing overhead. CB could find the root cause by looking into any increases in raw materials cost, unexpected equipment repairs or replacements, facility maintenance, etc. For advertising, we see an overall unfavorable variance after accounting for a favorable efficiency variance of $1246. Perhaps the company bought more expensive advertising, but some of the cost was made up because the advertising was more effective. As mentioned earlier in the budget analysis, Competition Bikes would benefit from increasing its budget for advertising; however, it should also live within the budget allotted. The advertising manager should be held accountable for overages beyond the budgeted amount. Transportation out is contracted at $30 per unit shipped. An unfavorable variance of $5607 means that Competition Bikes paid for the shipping of 186 bikes that weren’t even built. The company should discuss this discrepancy with its carrier and get a refund or a credit toward next year. The overall variance in total variable costs is favorable, and relates to the decreased number of bikes produced. The unfavorable variance in net sales resulted in a lower contribution margin. However, since the total variable costs were favorable, we still see an overall favorable contribution margin. Minimal favorable variance. No corrective action needed. A small unfavorable variance here could represent extra hours worked by administrative staff, or perhaps a new person was hired at a higher wage. Competition Bikes could use the human resources department to budget more accurately for salaries. Executive compensation came in $2000 under budget,

Manufacturing Overhead

26,426 U

Advertising Expenses

3,754 U

Transportation Out

5,607 U

Total Variable Costs Contribution Margin Dist. Network Contracted Support Administrative Salaries Executive

(64,212) F 43,674 F

(370) F

1,000 U

(2,000) F

JET2 TASK 2 Compensation

5 which is good, but overall compensation may still be budgeted too high when the company is still not meeting its sales and production forecast. (77) F Minimal favorable variance. No corrective action needed. Competition Bikes could review its use of lights, water, waste removal, recycling, heating, and cooling to identify any process changes that could sustain this favorable variance in the future. The research and development departments did not exceed their allotted budget, which is commendable, but they should use everything in their budget because R&D significantly impacts the future of the company. Competition Bikes should discuss expectations with the R&D manager and make sure that all budgeted dollars are being used to improve the company’s products. Competition Bikes should identify the items that make up this category to identify the cause of the unfavorable variance. It is relatively small but adds up over time, so it may be beneficial to monitor. Minimal favorable variance. No corrective action needed. Overall favorable variance means that overall operating expenses were less than expected. This is commendable; no corrective action needed. Operating income actual output exceeded the flexible budget amount by almost double, largely because of the decreased costs due to decreased production. This decrease in expenses resulted in a favorable variance of $47,795.

Employment Taxes Utilities

(1,777) F

Research and Development

(2,397) F

General and Admin Other services Total Operating Expenses Operating Income

2,000 U (500) F (4,121) F

47,795 F

A.2.b. Management by exception To help managers and executives prioritize their time, Competition Bikes uses management by exception. This strategy allows them to focus primarily on the budget areas that show a significant deviation from what was budgeted for each line item. The deviation can be an absolute dollar amount, a percentage, or even a trend over time. (Hilton, 2011). For example, if Competition Bikes chooses the value of $10,000 to identify significant variances, the number of line items brought to management’s

JET2 TASK 2 attention drastically decreases. The table above includes eighteen different variances. Applying management by exception and the threshold of $10,000, management only needs to focus on seven variances. These are listed in the table below.


Budget item Net Sales Direct materials Direct Labor Manufacturing Overhead Total Variable Costs Contribution Margin Operating Income

Variance (20,538) U (200,000) F 100,000 U 26,426 U (64,212) F 43,674 F 47,795 F

Using management by exception allows managers and executives to easily see the items where their time and efforts will have the greatest impact.

JET2 TASK 2 References Hilton, R.W. (2011). Managerial Accounting: Creating value in a dynamic business environment (9th ed.). p. 416. New York, NY: McGraw-Hill/Irwin.


Similar Documents

Premium Essay

Jet2 Task 1

...JET2 Financial Analysis Task 1 Western Governors University Kim Laudig, RN, BSN, MSN 11/01/2014 JET2 Financial Analysis Task 1 A1a Horizontal Analysis Results The Horizontal Analysis Results are taken from Competition Bikes’ Income Statements and their Balance Sheets. A Horizontal Analysis looks at data from one year to the next, usually over a three year span. This company’s Horizontal Analysis is comparing year six to year seven and year seven to year eight. While evaluating the company’s operational strengths and weaknesses, and analyzing the results of the Income Statement for years six, seven, and eight, there were several areas of concern. Years seven and eight shows the most areas of concern for the company. However, while analyzing years six and seven, there were some positive results for the company. During years six and seven, there was an increase in revenue. Net sales increased by 33.3% increase. The cost of goods sold also increased. This was an increase of 31.8%. The fact of increase with both of these analysis showed positive results. The increase of net sales should always be more than the increase in cost of goods. If this does not happen, than the company is spending more on parts and supplies than they are making on goods sold. This also showed the company was able to sell more bikes at a lower cost than they had to spend on the supplies needed to make the bikes. This was proven by the company showing a 37.5% increase in gross......

Words: 5846 - Pages: 24

Premium Essay

Jet2 Task 1

...Financial Statement Analysis JET2 Task 1 Evaluate the company’s operational strengths and weaknesses: A-1a Horizontal Analysis is defined as the following: A procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period of time (Investopedia). Vertical Analysis is defined as the following: “is a popular method of financial statement analysis that shows each item on a statement as a percentage of a base figure within the statement” (Accounting, Trend Analysis is defined as the following: An aspect of technical analysis that tries to predict the future movement of a stock based on past data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future (Investopedia). Ratio Analysis is defined as the following: Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas (Mathis). Competition Bikes, Inc. Comparative Income Statements Revenue Net Sales- The company’s net sales increased from year 6 to 7 by $1,495,000.00 or as the spreadsheet shows 33.3%. This is a very strong in increase. However, year 7 to 8 showed a net sales decreased of -$897,000.00 or -15%. This decrease shows a weakness, it is vital that net sales grow or at least stay even. Gross Profit- Gross profit shows an increase......

Words: 6793 - Pages: 28

Premium Essay

Jet2 Task 1

...| Competition Bikes: Task 1 | | Jamila Mitchell | | Competition Bikes: Task 1 | | Jamila Mitchell | Western Governors University JET2 Financial Analysis Western Governors University JET2 Financial Analysis Competition Bikes: Task 1 Jamila Mitchell Operational Strengths and Weaknesses Horizontal Analysis To evaluate changes in financial statements, a horizontal analysis is necessary so the company can determine whether there is positive or negative growth over time. The changes in percentages is calculated and decisions are made according to the increases or declines. Competition Bikes: Year 7 Overall, year seven was a successful year for the company based on the horizontal analysis of the following financial aspects. Revenue Net sales went from $4,485,000 in year six to $5,980,000 in year seven, an increase of $1,495,000 or a 33.3% increase. The cost of goods sold in year six was $3,294,000, which increased to $4,342,000. This increase of $1,048,000, or 31.8%, was expected considering the increase in net sales. The cost of goods sold remained less than net sales, so this is a strength for the company. While both net sales and cost of goods sold increased, there was still a balance between the two. This shows that the company sold more products at a lower cost, which also attributed to the 37.5% increase in growth profits. Total Selling Expenses Total selling expenses increased from $299,220 in year six to $397,960 in year seven. This......

Words: 5232 - Pages: 21

Premium Essay

Jet2 Task 1

...JET2 Task 1 Horizontal Analysis Results Horizontal Analysis is defined as “a procedure in fundamental analysis in which an analyst compares ratios or line items in a company’s financial statements over a certain period of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon under consideration.” ( This data is calculated in both dollars and percentages using data from the balance sheet and income statement. It is an extremely useful tool to evaluate trend situations. The Horizontal Analysis is used to determine Competition Bikes actual financial operating performance from years 6 through 8, with year 6 as the base year. When I looked at the analysis between years 6 and 7, I looked at the financial changes to see what the actual performance was by percentage. The net sales for years 6 and 7 showed a change of $1,495,000 which is a positive increase of 33%. This shows that sales have increased and leads the company to believe that the operating performance was also good and tha customers/dealers really like the product. There was a change of $1,048,000, an increase of 31%, for cost of goods sold. This shows that there is financial strength for the company and also shows that customers/dealers like the products. When looking at cost of goods sold, they should remain lower that the sales increase so that the company can control the cost...

Words: 5924 - Pages: 24

Premium Essay

Jet2 Task 1

...JET2-Task1 A.1.a Horizontal analysis Horizontal analysis is essentially an analysis on the trend of the financials of the company. It shows changes in the amounts of the amounts over a period of time. In the financial statement provided, the horizontal analysis is between years six and seven, and years seven and eight; respectively. When analyzing the income statement provided with the task, several strengths and weaknesses are very apparent. They will be broken down individually and analyzed separately. Horizontal analysis is calculated by using the formula below ("Horizontal Analysis," n.d.) Income Statement Revenue: Net sales between years 6 and 7 demonstrate a 33.3% increase or an increase in approximately $1.5 million. This is a strength because there were positive sales during this time frame. Positive sales are always a positive finding in business. However, sales between years 7 and 8 demonstrate a decrease in net sales of -15% or $897,000. This is a weakness due to the overall sales being down. Cost of Goods Sold between years 6 and 7 demonstrates an increase of 31.8% or $1,048,000. The costs associated with manufacturing goods are always going to be a big expense. While the cost associated may appear to be a weakness for the company, it actually demonstrates strength for the company. The reason being is the percent change in sales. It closely represents the increase in sales during the same period. If the sales number did not adequately......

Words: 6498 - Pages: 26

Premium Essay

Jet2 Task 1

...JET2 TASK 1 Introduction Competition Bikes, Inc. is a large company who during recent years has been affected by the changing population and recession. With this have come changes to the financial status of the company. Analyzing the company’s strengths and weaknesses in multiple aspects with regards to financial stats including working capital, internal controls, risks, and compliance with regulations will allow the company to increase revenue and make a plan for future growth and development. A1a: Horizontal Analysis A horizontal analysis allows comparison of multiple years in a linear fashion, compared with the totals to give a percentage of change (Investopedia, 2013a). The company has many strengths and weaknesses within their financial statements based on the horizontal analysis. The net sales amount for the company is the money the company makes after any deductions, returns, discounts, etc. A weakness for the company is the fact that sales have been down in the last year, showing a net sales change of -15% for years 7 and 8. This is mainly due to the current state of the economy, which has caused a decrease in sponsor sales and funding. A strength for the company is the great potential for an increase in net sales in the coming years. The numbers show that from years 6 to 7 there was a 33.3% increase in sales due to the high demand for the CarbonLite bike products that the professional riders want. Since the company has a highly coveted product and the economy......

Words: 8243 - Pages: 33

Premium Essay

Jet2 Task 1

...fits into the overall picture. For example, the cash and cash equivalents in year 8 are 9.7% of the total assets. What that means is CBI has a nearly 10% of its assets in either cash or assets that can converted to cash quickly. Year over year analysis of year 6 to year 7 shows that the total current assets increased from 24.5% in year 6 to 31.5% in year 7. In year 8, the total current assets increased again from 31.5% to 36.8%. Total assets also include property and equipment which is recorded at cost. Each line item before depreciation remains static, while the accumulated depreciation continues to increase. The total assets for year 6 were valued at $4,199,303. Year 7 saw a 2% increase at $4,293,044 with year 8 having a slight dip of .1% at $4,285,831. With the significant decrease in net sales between year 7 and year 8, one might expect to see the assets also drop off at a higher rate. This indicates that CBI manages its assets well. The area that is of some concern, however, is the current liabilities. The notes and notes payable line in year 8 has increased by 33% over year 7 and is 6.1% of the total liabilities and equity. This is significantly higher than year 7, which was 4.6% of the total liabilities and...

Words: 1130 - Pages: 5

Premium Essay

Jet2 Task 1

...Financial Statement Analysis and Controls A1. Based on a cursory examination of the horizontal analysis in the financial data provided, Competition Bikes, Inc.’s financial position improved from years six to seven and declined between seven and eight. The sales forecast in the scenario indicates an economic downturn as the reason for 15% decline in Net Sales. The specific analysis follows. A1a. The Comparative Income Statements for Competition Bikes, Inc. shows a 33.3% increase in net sales between years six and seven with a gross profit increase of 37.5%. This is a significant increase. Comparing percentages from years seven and eight for the same data shows a change in net sales of -15.0% and a decline in gross profit of -16.3%. It is obvious that any increase in net sales and/or gross profit is a sign of strength while a decrease could indicate weakness and year seven to eight shows a significant decline. However, year eight remains an improvement over year six comparatively. Cost of Goods Sold (COGS) increased 31.8% from year six to seven and decreased -14.5% between years seven and eight. These changes are consistent with the net sales changes and do not point to the COGS being the reason for change between the years being compared. Operating expenses show that money spent on advertising increased 37.5% from year six to seven and then management decreased the budget by -16.3%. The savings in advertising could be part of the reason for the...

Words: 4902 - Pages: 20

Premium Essay

Jet2 Task#1

...Running head: Financial Analysis Report 1 Competition Bikes, Inc. Financial Analysis Report Western Governors University Financial Analysis Report 2 Competition Bikes, Inc. Financial Analysis Report Analysis must be completed to determine a company’s performance and future viability. The review of income statements, balance sheets, past and present performance will be utilized to predict future company performance. Management of Competition Bikes, Inc. will then use this information to help influence decisions that will meet with company goals. The financial analysis report for Competition Bikes, Inc. (CBI) will include a total of four sections. The financial strengths and weaknesses for years 6, 7, and 8 will be analyzed through utilization of horizontal analysis, vertical analysis, trend analysis and ratio analysis. Secondly, the company’s working capital will be reviewed. Suggestions will be made on how to improve working capital and improve profits. Thirdly, the internal controls within CBI will be reviewed and weaknesses will be identified at this time. Finally, the Sarbanes-Oxley requirements will be detailed and requirements that CBI needs to adhere to for risk reduction and maintain compliance. A1a. Horizontal Analysis CBI years 6 and 7 will be compared first and then years 7 and 8. This will provide a three year time period to analyze. This information will provide insight into CBI business and if business is growing, steady, or falling. CBI net......

Words: 5856 - Pages: 24

Premium Essay

Jet2 Task 1

...A1.a. Horizontal Analysis Results Competition Bikes, Inc. has seen a rather large decrease in net sales from the current period (years 7 and 8) versus the period before (years 6 and 7). The decrease is attributable to the current economic situation. The company expects unit sales to increase over the next three years but to still stay below the high unit sales figure of the 4,000 units sold in 2007. While sales have decreased, the cost of goods sold as a percentage to net sales has remained a constant 73%. This show raw material prices and labor have remained fairly constant. Advertising has been cut 16.3% from the two periods as a result of lower sales. Marketing budgets are usually the first expense to be cut in a downturn market, but are not necessarily the most prudent as companies must still fight hard for the available sales which are present. For general and admin expenses, Competition Bikes has stayed relatively flat to expenses from the previous period to current. Utilities are up 11.1%, probably due to higher energy costs. One area that bears investigation is the line “other general and admin expenses” which is up $12,000 or 7.6% over the period while sales have fallen 15%. The most troubling line is “operating income” which has fallen 69.1% while sales has fallen only the 15%. The fact of fixed overhead, salaries, and utilities, which are paid out whether any sales are brought in, are draining company cash much more than sales percentage decline.......

Words: 3057 - Pages: 13

Premium Essay

Jet2 Task 1

...success of the company relies on accountability and transparency and therefore, a financial analysis is completed on a yearly basis. This process is vital to the success of the company as it gives management the foundation with which to base future long and short term goals. Each financial analysis evaluates horizontal, vertical, trend, and ratio results. A1a. Horizontal Analysis is “A procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon under consideration” (Investopedia, Horizontal Analysis, para. 1). According to the Income Statements Competition Bikes, Inc. was strong in many areas from year 6 to year 7. Net sales increased by $1,495,000 from Y6 to Y7 which is a 33.3% increase. When looked at with the cost of goods sold which increased only 31.8% or $1,048,000 during the same time period you can see that the company was successful in increasing its gross profit. Gross profit increased $447,000 from Y6 to Y7 or 37.5%. Increased profit is a big strength for the company. Operating expenses were controlled successfully. This is a strength for the company as expenses take away from profits. Selling expenses increased $98,740 or 33.0%. General and Administration Expenses increased $156,440 or 20.4%. Therefore, Total......

Words: 4303 - Pages: 18

Premium Essay

Jet2 Task 1

...Horizontal analysis results After reviewing Competition Bikes Inc.’s financial statements I was able to analyze the different trends occurring within the company and discuss operational areas of concern. Overall net sales saw a significant increase from years 6 to 7 of 33%, but then fell 15% from years 7 to 8 which resulted in a decrease of $897,000 of revenue. The decrease was attributed primarily to the current economic situation. It looks like the company adjusted properly with the loss of revenue from years 7 to 8 by decreasing their selling expenses by 15%, but they decreased their advertising expense which could have caused a lack of revenue (sales) by not attracting customers while competitors increased their marketing. Where the company failed to adjust properly was in its administrative expenses. While revenue decreased 16.3%, administrative expenses increased 1.3%. This was one of the main reasons the company’s net profit margin went from 2.8% to .6% from years 7 to 8 while Two Wheel Racing, the competition, had a 5.1% net profit margin. The company is currently holding onto a significant amount of cash on hand (a 348.2% increase from years 7 to 8) and had a drastic increase of accounts receivable from year 6 to years 7 and 8. This is a big indicator of the company’s struggle to collect money in a timely manor. It takes Competition Bikes 43.8 days to collect while Two Wheel racing is able to collect in 32.5 days. Vertical analysis results When......

Words: 1375 - Pages: 6

Premium Essay

Jet2 Task 1

...Horizontal Analysis Horizontal analysis is one of the two main ways to analysis the financial statements of a business. This analysis provides a year to year look at the financial performance of the business being evaluated. The spreadsheet that is attached provides a horizontal analysis of years 6, 7, and 8 for the balance sheet and income statement for Competitive Bikes and Two Wheel Racing. The horizontal analysis can take into account either the dollar amount of the changes over the years or the percentage of change for the years. This analysis will consider both items, and will also be comparing years 6 and 7 and 7 and 8. Year 7 The analysis of years 6 and 7 shows a positive result for Competitive Bikes. Revenue There was a positive increase in revenue for years 6 and 7. Net sales increased by $1,495,000 between years 6 and 7. This was a 33.3% increase for Competition Bikes. The cost of goods sold increased $1,048,000. This was a 31.8% increase. The fact that net sales increased by 33.3%, and cost of goods sold increased by only 31.8% was a significant factor in these two years. This was a positive result, because net sales increased more than what the cost of goods sold increased. Competition Bikes found a way to sell more bikes at a lower cost for the company. This is why the company had an increase of 37.5% in gross profit. Selling Expenses Total selling expenses increased by 33% between years 6 and 7. This was expected, because most of the selling expenses are......

Words: 8569 - Pages: 35

Premium Essay

Jet2 - Task 1

...A3. Internal Controls Competition Bikes manages their operations by producing and keeping inventory of raw materials in order to produce their bikes according to monthly forecasts and budgets. The purchasing department looks at inventory each month and purchases from the low cost supplier based on the needs for the upcoming month. The parts, once received, are sent to production, and if not used for during the month, are sent back to raw material inventory on the last day of the month so purchasing can review the needs for the next month. There are several flaws in the way CBI conducts their raw material purchasing program. First, waiting until the end of the month to forecast, put out for bid, and put in purchase orders for raw materials is cumbersome and not indicative of a company which can react quickly to getting raw materials into the plant. There is a chance that production could run out of a certain component needed to build bikes if it takes too long to get part in. This seems to be corrected by keeping too many raw materials in stock, even during slow times, which was addressed earlier by keeping inventory dollars tied up during the month. The company should be purchasing as needed, just-in-time, so that raw materials are coming in just before the production floor needs the components. The second flaw is leaving raw materials in production for a month and then trying to round up all of the pieces to put back in inventory. This probably creates a......

Words: 1116 - Pages: 5

Free Essay

Jet2 Task #1

...Managing Internal Cost and Controlling Finances JET Task #2 Competition Bikes, Inc. Budget Process Budgets are used for forecasting future business growth and outcomes. Providing a comparison between a forecasted budget with previous year’s actual results allows leadership to strategize and plan for the company’s future on past performance. Producing a master budget roadmap for future operations may be done in two ways--by using fixed budget or flexible budgeting processes. There are advantages and disadvantages of each method of evaluation or projection of growth and it is recommended that the leadership of Competition Bikes, Inc, (CBI) consider all options presented to optimize future corporate growth. The CEO of Competition Bikes, Inc. requested a review of current budgetary information (“Year 8”) projection for the upcoming business year. Areas of analysis and management intervention have been reviewed based on data provided by CBI. Competition Bikes, Inc.’s “Year 9” budget (pro forma) has been based on financial information provided based on a current trend analysis from three previous years and focusing on “Year 8” financials. A master budget was created to plan and control revenues and costs for future growth and corporate development for “Year 9.” The benefit to CBI leadership in reviewing “Year 9” financial plans allows for decision-making on planning, coordination of operations, and benchmarking for an evaluation of actual performance at the end of......

Words: 2859 - Pages: 12