Pretend you are an owner of Sam?s Sporting Goods. Consider the information provided in the chart below. Then create a projected budget and determine what actions management may need to take to maximize return.

1. Create a projected budget for the next 18 months, starting the 1^st of next month.
2. Evaluate the projected budget and determine if the store is profitable for each month and track Cash Flow per month.
3. DetermineanddefendrecommendationsonchangesthatyouwouldmakeoractionsyouwouldtakeasanownertohelpincreasetheReturnonInvestmentof$15M.CalculatetheROIatthe18monthmark.

Budget Analysis:

Write a budget analysis that includes the following:

1. An Excel spreadsheet showing 18 month projected budget for Sam?s Southwest Sporting Goods.
2. A month-by-month Cash Flow Analysis to aid in decision-making process. Calculate the ROI at the 18-month mark based upon the $15M investment.

BSAD310 Financial Accounting Systems Sam's Sporting Goods Budget Analysis Directions: Pretend you are an owner of Sam's Sporting Goods. Consider the information provided in the chart below. Then create a projected budget and determine what actions management may need to take to maximize return. 1. Create a projected budget for the next 18 months, starting the 1 st of next month. 2. Evaluate the projected budget and determine if the store is profitable for each month and track Cash Flow per month. 3. Determine and defend recommendations on changes that you would make or actions you would take as an owner to help increase the Return on Investment of $15M. Calculate the ROI at the 18 month mark. Suggestion: Research using Google or Yahoo Finance to determine any cost variances from Industry Averages or Major Competitors. Budget Item Details Sales $1,000,000/mo COGS 50% Returns Admin Fees 4% of Gross Sales Up 20% during April, May, Aug, Nov, Dec Drops 15% in April due to Massive Summer Ordering Returns 3% Feb-Nov, 12% Dec - Jan Static Current Cash on Hand $25,000 Starting amount for Cash Flow Analysis Depreciation Expense Straight-Line Method General Mgr. and Asst. Mgr. Salaries Grade A Retail space $30/ft. + 7% gross sales Health Insurance $400/employee 15/FT/40hr employees Insurance Policy $20M Umbrella, 6% of Gross $240,000/yr make $10,000 combined Increases to $32/ft. in September Increases 15% on June 1 Increases 10% on July 1 Management Bonus Bonus is 10% of Net Income if NI>3% of Gross Sales Marginal Tax Rate Marketing 5% of Gross Sales 34% Up 50% during April, May, Aug, Nov, Dec Other Misc. Expenses Outside Accounting & Legal Fees 2% of Gross Sales 5% of Gross Sales Static Startup Cost for the business Utilities on 15,000 sf at 10cent/ft./mo. Wages including Taxes, UEI $14/hr. $15,000,000 cash Increases 20% on Jan 1, Plus Up 10% in May, June, July Increases 8% on June 1 Budget Analysis: Write a budget analysis that includes the following: 1. An Excel spreadsheet showing 18 month projected budget for Sam's Southwest Sporting Goods. 2. A month-by-month Cash Flow Analysis to aid in decision-making process. Calculate the ROI at the 18-month mark based upon the $15M investment. 3. At least four recommendations to increase ROI based upon the projected budget, cash flow analysis and any research. Describe and defend the four recommendations with reputable professional support. Requirements: 1,000-1,250-words excluding the title page and references. Use at least three scholarly or professional journal articles written within the last five years cited in APA format. Include an introduction and conclusion, plus the projected budget spreadsheet, and other charts. Insert the Excel spreadsheet as a table into the document. Do not attach the spreadsheet as a separate file. Consult the Written Assignment Grading Rubric to ensure you are meeting the assignment's criteria as this information and the rubric will be used to assess your work