Question
American Express: Operating Budget Q1 For this Interactive Assignment, you are going to look at the financial statements for the company you selected and, using
American Express: Operating Budget Q1
For this Interactive Assignment, you are going to look at the financial statements for the company you selected and, using the previous quarters financial data, interpret the data and propose a budget for the next Quarter based on your current and previous analysis of company performance. Complete the budget template using this Operating Budget Template:
List your current sales, discounts and allowances, net sales, margins, operating costs, and earning before and after taxes.
Choose a minimum of two financial ratios (below) and include in your analysis.
Prepare the next quarters budget based on your interpretation of past data.
Include at least two of the following types of relevant financial ratios in your analysis. Review the online article Analyze Investments Quickly With Ratios (Links to an external site.)Links to an external site. (Elmerraji, 2017) and Chapter 5 in the Abrahams textbook to help with this portion of the budget:
Profitability Ratio
Liquidity Ratio
Solvency Ratio
Valuation Ratio
Leverage Ratio
provide a brief description of your company and provide a summary of your Operating Budget along with a rationale that supports suggested budgetary changes. Attach your Operating Budget Template to your initial post for review by your instructor and your peers.
[Prior Quarter] | Budget Projection Next Q | Var +/-
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Revenue | ||||
Sales Revenue |
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Interest Income |
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Investment Income |
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Other Income |
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TOTAL INCOME |
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| [Prior Quarter] | Budget Projection Next Q | Var +/- | Var % |
Costs and Expenses | ||||
Advertising |
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Health Insurance |
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Installation/Repair of Equipment |
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Inventory Purchases |
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Salaries |
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Supplies |
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Insurance |
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Rent/Lease Payments |
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Other Expenses |
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TOTAL EXPENSES |
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NET PROFIT/LOSS |
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Net Earnings Before Taxes (Gain or Loss) |
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Income Tax Expense |
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Net Earnings After Taxes |
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| [Prior Q] | Proj. Q. | Change | |
Ratio Analysis (Choose a minimum of two) | ||||
Profitability Ratio |
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Liquidity Ratio |
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Solvency Ratio |
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Valuation Ratio |
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Leverage Ratio |
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