Case Analysis: Example Manufacturing Annual Draft Operating Budget
[WLO: 2] [CLO: 6]
Prior to beginning work on this assignment, read the A Budget Model for a Small Manufacturing Firm article. A Writing a Case Study Analysis Links to an external site. resource is available in the Writing Center.
Review the Example Manufacturing Case below. Using the information and the financial data derived in the Example case, and after reading Fleming’s article, you will 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 below.
Example 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. Example also has an $180,000 annual contract from Boeing, and a contract for small plastic parts from Raytheon totaling $1.6 million annually.
Your chief financial officer (CFO) has provided you with the following annual expenses:
Example 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 example Manufacturing Operating Budget Template Download example Manufacturing Operating Budget Template,
- Complete a 12-month operating budget.
- Include the projected net profit (or loss).
- Turn in with the summary below.
After completing the budget template, please write a two- to three-page summary, and include 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: Example 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 Center’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.
- Student’s name
- Name of institution (University of Arizona Global Campus)
- Course name and number
- Instructor’s name
- Due date
- Title of paper in bold font
- 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 credible or 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 Center’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.
Xample ManufacturingOperating Budget (2019)
| Quarter 1 | Quarter 2 |
Quarter 3
|
Quarter 4
|
TOTAL
(add across) |
|
| Revenue | |||||
| Sony Contract | |||||
| Boeing Contract | |||||
| Ratheon Contract | |||||
| Other Income | |||||
| PROJECTED TOTAL INCOME | |||||
| Costs and Expenses | |||||
| Salaries | |||||
| Benefits | |||||
| Rent | |||||
| Insurance | |||||
| Depreciation | |||||
| Overhead | |||||
| Supplies | |||||
| Raw Materials | |||||
| PROJECTED TOTAL EXPENSES | |||||
| PROJECTED NET PROFIT/(LOSS) |
