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Question: Please Explain part 1,2,3 Thanks Part 1 Using the table below, describe the types of budgets. In your description, include: The objective of the

Question:Please Explain part 1,2,3

Thanks

Part 1

Using the table below, describe the types of budgets. In your description, include:

The objective of the budget

How the budget assists an organization in managing its financial activities

What types of data need to be included in that specific budget

Type of Budget

Description

Cash Flow

Operating

Sales

Static

Financial

Week Three Financial Exercises

Part 2

Complete the following problems using the following ratios:

Sales level at which operating income is zero

oIf sales above breakeven, then profit

oIf sales below breakeven, then loss

oFixed expenses = total contribution margin

Total sales = total expenses

Break Even Point:Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit

Break Even Point:Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio

Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit.

Answer:

Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.

Answer:

Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the

contribution margin is $60 per unit.

Answer:

Week Three Financial Exercises

Part 3

Complete the following problems:

How much will you have saved after 6 years by contributing $1,200 at the end of each year if you expect to earn 11%

On the investment?

Answer:

A business owner plans to deposit his annual profits in an investment account earning a 9% annual return.

If the owner starts with their first deposit today for $22,000 and expects to make the same profit for the next 7 years, how

Much will be saved for retirement at that point?

Answer:

An investor plans to invest $500 a year and expects to get a 10.5% return.If the investor makes these contributions

at the end of the next 20 years, what is the present value of this investment today

Answer:

What is the present value (PV) of a 12-year lease arrangement with an interest rate of 7.5 percent that requires annual

payments of $4,250 per year with the first payment being due now?

Answer:

A recent college graduate hopes to have $200,000 saved in their retirement account 25 years from now by

contributing $150 per month in a 401(k) plan.The goal is to earn 10% annually on the monthly contribution.

Will they have the $200,000 at the end of the 25 years?

Answer:

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