Survey of Accounting Packet 4 p. 3 Survey of Accounting Packet 4 P. 4 Part 3 Category Budgeted Amount Income 1. $ Last week you identified your recurring personal expenses and classified them as fixed, variable, or mixed. Now, let's use them as a starting point to create a personal budget for yourself. Using the template provided on Brightspace, prepare a budget in Excel for yourself for February. Compare notes with your group members to ensure you aren't omitting anything. Be sure to include all sources of funds you use to pay expenses. For example, wages from a job and support from parents. 2. $ 3. $ $ Total Income Expenses Today you'll just be submitting your budget, but during February you will be tracking your expenses and analyzing the final result relative to your budget. In other words, try to be as accurate as possible. 1. $ 2. $ 3. $ The form below is for discussion purposes only. Be sure to submit your actual budget using the provided Excel template. For now, you only need to complete the first two columns ("Category" and "Budget") in the Excel template. We'll come back to the remainder of the sheet when we analyze actual results. So, don't delete them! Two example budgets are also presented in the workbook. 4. $ 5. $ 6. $ 7. $ 8. $ 9. $ 10. $ Total Expenses $ Difference (Total income less total expenses) $ p. 1 Survey of Accounting Packet 4 Semester Case - My Assistant Now that he has a basic understanding of the number of jobs his business will need to complete in order to be cover costs and earn a profit, W.T. would like to explore some alternate scenarios and compute a basic budget for the first few months of operation. Part 1 After discussing his growth plans with several people, including his social media manager, W.T. believes he should be able to add 2 jobs in September, 10 jobs per month during October, November, and December. He will be operating his business for all of August and December, even though school won't be in session throughout those months. Assume that W.T. generates 40 jobs in the first month and charges $15 per job. Based on these assumptions, complete the sales budget below by filling in the missing amounts: Jobs Sales Growth rate Month August 30 $600 5% September 42 $630 23.81% October 52 $780 November 62 19.23% $930 16.13% December 72 $1080 Based on the above, and on analysis completed in previous classes, complete the following: August September October November December Total sales $600 $630 $780 $930 $1080 $241.50 $299 $356.50 $414 Less: Total variable costs $230 = Total contribution margin $370 $388.50 $481 $573.50 $666 Less: Total fixed costs $220 $220 $220 $220 $220 = Total profit $150 $168.50 $261 $353.50 $446 4 Part 2 W.T.'s parents have agreed to provide him with additional support during the fall semester (up to $400 per month), but have asked that he compute the amount of additional cash he'l need each month so that they can properly budget. At the end of each month, they provide the additional estimated cash he believes he'll need for the following month. Help W.T. provide these projections by completing the following schedule for August and September. Assume he will be able to use profits from the business as needed to pay expenses. Payments to the newspaper and social media manager are not due until the end of each month. To provide some extra security, he'd like to maintain a cash balance of at least $500. Currently, he has $100 in his account. How much should he ask his parents for in order to support himself in Augusta AUGUSTI September Beginning cash balance I + Estimated sales $ Less: Estimated payments: Variable costs Fixed costs = Estimated ending cash balance before additional funds + Amount needed from parents = Ending cash balance $ $ $ $ 5 $ $ $
