Cat World operates a chain of pet stores in the Prairies. The manager of each store reports to the regional manager, who, in turn, reports to headquarters in Regina. The actual income statements for the Winnipeg store. the Manitoba region (including the Winnipeg store), and the company as a whole (including the Manitoba region) for July are as follows: 0 (Click the icon to view the actual income statements.) 0 (Click the icon to view the budgeted income statements.) Requirements 1. Prepare a report for July that shows the performance of the Winnipeg store, the Manitoba region, and the company as a whole. 2. As the Manitoba region manager, would you investigate the Winnipeg store on the basis of this report? Why or why not? 3. Briey discuss the benets of budgeting. Base your discussion on Cat World's performance report. Requirement 1. Prepare a report that shows the performance of the Winnipeg store, the Manitoba region and the company as a whole. We will begin with the company as a whole. (Use parentheses or a minus sign when entering the headquarters' expense and any unfavourable variances.) Cat World Responsibility Accountlng Performance Report July Companywlde Variance Operating Income of Regions and Favourable Headquarters' Ofce Expense Actual Budget (Unfavourable) Headquarters' ofce expense I Cat World Responsibility Accounting Performance Report July Companywide Variance Operating Income of Regions and Favourable Headquarters' Office Expense Actual Budget (Unfavourable) Headquarters' office expense Manitoba Stores in other regions Operating incomeFinally, show the performance of the Winnipeg store. (For variances with a zero balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign when entering any unfavourable variances.) ll Winnipeg Variance Favourable Revenues and Expenses: (Unfavourable) Revenue Expenses: Cost of materials Salary expense Depreciation expense \fRequirement 3. Briey discuss the benets of budgeting. Base your discussion on Cat World's performance report. Budgeting V plan. The various levels of Cat Wod's management I their operations to develop the detailed budgets in the performance report. Budgeting V coordination and communication. The budgets of the performance report communicate V from the company headquarters to region managers, and from region managers to store managers and their staff. Budgets also help managers V activities across the company's operations. Budgeting helps managers evaluate V . The budget versus actual comparisons in the report are better indicators of 7 than current period actual amounts versus past period actual amounts. Budgeting also V . The Winnipeg store. other Manitoba stores, stores in other regions, and the headquarters will be V to meet their budgets if budgets are the benchmark for measuring performance, and if accept the budgets as fair. 7 participation in the budgeting process helps ensure acceptance