Comprehensive Problem #2 Budget Project Accounting 2302 The objective of this project is to understand and apply the basic concepts of profit planning. Use the Excel ilie to complete the assignment and submit the completed Excel file on Blackboard. Required: Prepare a comprehensive 6-month budget, including supporting schedules, for the period January 1, 2018 to June 30, 2018 for Henron, Inc. (a fictional company). The budgets must be prepared on Excel using the templates I have prepared Part of this project is demonstrating proper use of Excel. You may only input a "hard All yellow cells must be formulas (use appropriate cell referencing). number into a I recommend constructing the formulas for one month and then copying the formulas over to the remaining months. Beware of exceptions to this rule and let me know if you don't know how to do specific formulas, copy/paste, "sticky references, etc . Be careful with the '6 mos total" columns! Sometimes, they are a sum of the 6 months, but sometimes not (for instance, beginning inventory, or total cash available). Remember not to include Nov and Dec of 2017 in the totals. .The budget templates and this instruction sheet are located on the comprehensive problems page in Blackboard. Make sure you save the file to excel and then open the file through Excel (not Internet Explorer). Check figures are also located under comprehensive Problem #2" in Blackboard. INFORMATION FOR HENRON, INC. BUDGET PROJECT 1. Heron, Inc. is a company that re-sells one product, a lawn chair. A contractor makes the product exclusively for Heron, so Heron has no manufacturing costs. As of November 2017, each lawn chair costs Henron $4. Henron sells each chair for $10 per unit, but plans to raise the sales price to $11.25 per unit beginning May 1, 2018 2. The estimated sales (in units) are as follows: Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 11,500 12,500 16,000 18,000 17,000 13000 13,000 11,000 1100 3 Thirty percent of any month's sales are for cash, and the remaining 70%are on credit. hirty percent of the eedt sales are collectedinthe month-otsale 50% are collected in the month, and 16% are collected in the second month after the sale. Tn 496 are and written off as Bad Debt Expense in the month the debt is deemed uncollectible (eg. if the sale is made in January and is not collected by the end of March, it is witten off in March). They do not use the allowance method, no estimate of bad debt is needed. 4. The firm's policy regarding inventory is to stock (ie, have in ending inventory) 40% of the estimated sales for the next month. 30 Page 1 of 2
