Recommendations

Recommendation/s must be clear and unambiguous, and must be linked to solving the problem/s as discussed and evaluated, and allow the solution to fit within the context already referred to above.

Conclusion

The conclusion should be brief, like the introduction, and must link the solution to the problem, demonstrating how the solution solves the problem/s as defined.

Please only help me to do the Recommendation and Conclusion follow the guideline I gave you above. Regarding of this Case study. Thanks

Chapter 9 Budgeting CASE 9-27 Master Budget with Supporting Schedules LO 21 Knockoffs Unlimited a nationwide distributor of low-cost imitation designer necklaces, las exclusive franchise on the distribution of the necklaces and sales have grown so rapidly over the past few years that it has become necessary to add new members to the management team. To date the company's budgeting practices have been inferior and at times the company has experienced a cash shortage. You have been given responsibility for all planning and budgeting Your fir assignment is to prepare a master budget for the next three months starting April 1. You are any ious to make a favourable impression on the president and have assembled the information below The necklaces are sold to retailers for 10 cach. Recent and forecasted sales in units are as follows: January (actual) February (actus) March (actual). April May 20.000 26.000 40,000 65,000 100.000 June July August September 50000 30000 28.000 25.000 The large buildup in sales before and during May is due to Mother's Day. Ending inventories should be equal to 40% of the next month's sales in units. The necklaces cost the company 54 cach. Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit with no dis count and payable within 15 days. The company has found, however that only 20% of a month's sales are collected by month-end. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible The company's monthly selling and administrative expenses are given below: 4% of sales Variable: Sales conumissions... Fired: Advertising Rent.. Wages and salaries Utilities Insurance Depreciation $200.000 18.000 106000 7000 360D MODO All selling and administrative expenses are paid during the month. in cash with the exception of depreciation and insurance Insurance is paid on an annual basis in November of each year. The company plans to purchase 516,000 in new equipment during May and 540.000 in new equipment during June: both purchases will be paid in cash. The company declates dividends of $15.000 cach quarter payable in the first month of the following quarter. The company's balance sheet at March 31 is given below: $ 14000 Assets Cash Accounts receivable ($26.000 Fobrusy sales $320.000 March sales) Inventory... Prepaid insurance Fixed assets, niet of depreciation Total assets. 346.000 04000 21000 950.000 $1.495.000 Liabilities and Shareholders' Equity Accounts payable Dividends payable. Common shares. Retained earings Total abilities and shareholders equity $ 20.000 15.000 800.000 580000 31495000