Delta Retailers Inc.

Scenario: Budget Preparation

Data:

• Sales Forecast:
  • January: $100,000
  • February: $120,000
  • March: $110,000

• Expenses:
  • Salaries: $30,000 per month
  • Rent: $10,000 per month
  • Utilities: $5,000 per month

Requirements:

1. Prepare a monthly sales budget for January to March.
2. Prepare a monthly operating budget for January to March.
3. Discuss the importance of budgeting in financial planning and control.