1. The first part of the project will be based on Problem 2 (P2) on page 232 in the textbook. Prepare a comprehensive budget according to the given data and assumptions.

A set of blank excel spreadsheets will be provided.

a. The preset numbers in the original tab cant be changed.

b. The given assumptions from the textbook cant be changed.

These spreadsheets can assist with your budgeting need for work or business as well. If you have your own spreadsheets, feel free to use them. Be sure they contain at least all the components as the ones in the sample sheets.

2. The second part of the project is to prepare a new, comprehensive budget with 8% net income increase over the original budget in item 1.

a. The preset numbers in the new budget tab may not be changed.

b. New assumptions are allowed.

3. Submit both Excel spreadsheets in one file.

4. Prepare the presentation including the following information:

a. A brief introduction of the case;

b. Report the original Budgeted Income Statement (P/L budget);

c. Report the new P/L budget with 8% net income increase;

d. Discuss the assumptions made;

e. Rationalize your decisions;

f. The conclusion.

5. The key to an A score is, in addition to meeting the presentation requirements, to integrate comprehensive class learning and best practices.

LO3 LO4 Preparing a Comprehensive Budget P2. Bertha's Bathworks produces hair and bath products. Its biggest customer is a national retail chain that specializes in such products. Bertha Jackson, the owner of Bertha's Bath ks, would like to have an estimate of the company's net income in the coming year. Required Project Bertha's B nct income next year by completing the operating athworks" budgets and budgeted income statement that follow. 1. Sales Budget: Bertha's Bathworks Sales Budget For the Year Ended December 31 Quarter Sales in units 3,000 5,000 7.000 X Selling price per unit Total sales $20,000 2. Production Budget: Bertha's Bathworks Production Budget For the Year Ended December 31 Year Sales in units 4,000 Plus desired units of ending finished goods inventory 300 500 600 4,300 Desired total units Less desired units of beginning finished goods inventory -400 Total production units 3,900 Desired units of ending finishedgoods inventory 0% of next quarter's budgeted sales. 'Desired units of beginning finis goods inventory 0%of current quarter's budgeted sales