Assuming the student is a Chief Executive Officer of XYZ Company Limited who has received the company's Master budget plan for the next year as per the attached file. Being the top executive in the organization, you assume a duty of planning the companys performance and ensuring the company budgets are correspond to the companys objectives.

A student is required to use financial accounting and managerial accounting knowledge to analyze the budget and write a report/proposal to get approval from the companys board of directors. The report will describe whether you are satisfied with the budget and why. If not, specify how to improve the budget plan.

Companys background

XYZ Company Limited was established 15 years ago and the shareholders are among the family members. The company's directors consist of second-generation heirs who have an overseas education background.

XYZ has been focused on one and only high-end consumer product which possesses the unique characteristic to cater to one specific group of customers. Though the demand for the product is limited and gradually grows over the year, the company is able to maintain 70 percent of the market share.

In order to ensure the company's liquidity position, the management maintains a policy to keep the cash balance at the end of the accounting periods for an amount not less than USD. 300,000.

								XYZ CO.Ltd
								Sales Budget
								For the year ended 2022
						Q1	Q2	Q3	Q4		Total
Product A
Sales unit						11,000	11,000	12,000	12,000		46,000
Unit price						90.00	90.00	85.00	85.00
Total amount						990,000.00	990,000.00	1,020,000.00	1,020,000.00		4,020,000.00

Guidelines :

Set the goals

Profit

Returns

Liquidity

Verify the correctness of the numbers

Assumptions

Analyze the 3 reports in step 2 using the financial accounting techniques such as Financial ratios analysis (only the most applicable and useful ones).

Compare the ratios with the company benchmark to determine if you are satisfied with the results.

Find out what need to be improved and actions needed.

List all the improvements needed and find out options to achieve the budget improvement.

Adjust the figures in the budget and check if they meet your purpose.

(Please be aware that changing the figures in one budget will have the effects to the other budgets too).