You are the managerial accountant at Reliable Company. You have been assigned to support the marketing department and manage its master budget. The marketing department is responsible for the following:

• Managing the firm's marketing
• Hiring subcontractors
• Selling the consulting expertise to smaller outside firms

The department's expenses are as follows:

• Salaries and benefits of $48,000/month
• Web site operations of $21,000/ month
• Online advertising expenses of $15,000/month
• Miscellaneous expenses of $3,500/month

The sales forecast for its consulting services are as follows:

• April: $190,000
• May: $200,000
• June: $205,000

The department pays a sales commission of 5%, and this is paid in the following month. Subcontractor expenses are estimated at 45% of sales and are paid the month after they are billed. Consulting fees are collected 20% in the month of sale, 70% in the following month, and 10% in the second month following sale.

Refer to the attached schedules.

Develop a master budget for the marketing department.

This task includes the following:

• Completing the attached schedules for a master budget for the marketing department
• Supporting schedules for cash disbursements and collections

Analyze additional needs and resources based on those budgets. Make recommendations based on those budgets.

Respond to the following for this assignment:

• Develop the marketing department's master budget.
• Prepare a schedule of expected cash collections.
• Make recommendations based on those budgets.

Using the schedule template provided, complete the marketing department’s master budget and schedule of expected cash collections. In a 4-page report, provide your recommendations to support the marketing master budget. Submit both documents to complete the assignment. Please use APA formatting requirements for the word document.

Schedule:

Budget Data:

Reliable Company Marketing Department Master Budget
Data	April	May	June
Budgeted consulting revenues	$     190,000	$     200,000	$     205,000
Less: Sales commissions (5% of sales)	$          9,500	$        10,000	$        10,250
Less: Cost of sales (45% of sales)	$        85,500	$        90,000	$        92,250
Net consulting revenues	$        95,000	$     100,000	$     102,500
Accounts Receivable Collections
Month of sale	20%
Month following sale	70%
Second month following sale	10%
Monthly Budgeted Expenses
Salaries and benefits	$        48,000
Web site operations	$        21,000
Online advertising expenses	$        15,000
Other misc. expenses	$          3,500
Accounts Payable Payments
Month of sale	40%
Month following sale	60%
Accounts Payable
Online advertising expenses	$        15,000