Module 6 assignment 1 & 2

Assignment 1:

Carter’s BBQ Restaurant produces BBQ sauce for resale at grocery stores throughout North America. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly sales were as follows (1 unit = 1 batch):

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First quarter 67,200 units

Second quarter 80,640 units

Third quarter 100,800 units

Fourth quarter 87,360 units

Unit sales are expected to increase 25%, and each unit is expected to sell for $8. The management prefers to maintain ending finished goods inventory equal to 10% of next quarter’s sales. Assume that finished goods inventory at the end of the fourth quarter budget period is estimated to be 9,000 units.

  1. Using Excel prepare a sales budget for Carter’s BBQ Restaurant using a format similar to Figure 9.3, “Sales Budget for Jerry’s Ice Cream.” ( https://saylordotorg.github.io/text_managerial-accounting/s13-03-the-master-budget.html#heisinger_1.0-ch09_s03_s01_f02 ) (Hint: Be sure to increase last year’s unit sales by 25%.)
  2. Using Excel prepare a production budget for Carter’s BBQ Restaurant using the format shown in Figure 9.4, “Production Budget for Jerry’s Ice Cream.” (https://saylordotorg.github.io/text_managerial-accounting/s13-03-the-master-budget.html#heisinger_1.0-ch09_s03_s02_f01)

***** use the  links above ^ *****

Assignment 2

In a one- to two-page “Journal”, consider the function and purpose of a statement of cash flows within a business organization. Describe the four steps used to develop a statement of cash flows. Within the analysis explain how managers use this financial information to better manage the daily operations of a company.

  • Be sure to illustrate the four steps by using a real-world business example. The business can be one you work at or one you are familiar with.
  • Provide at least two scholarly sources.

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