You discovered in your report that most business failures are caused by insufficient planning and forecasting. Budgeting and forecasting allow an organization to successfully deal with resource availability or scarcity, allowing it to stay afloat in a competitive climate and gain an advantage over its competitors.

You must evaluate the use of various planning instruments (price strategies, standard costing, and so on) by describing their benefits and drawbacks for budget forecasting and control.

You have gathered following data for your report:

Month	Sales	Purchases	Factory Overhead	Selling & Admin
January	2,60,000	1,50,000	14,000	1,00,000
February	3,00,000	1,00,000	1,40,000	1,10,000
March	4,00,000	1,50,000	1,60,000	1,50,000
April	2,80,000	1,00,000	1,20,000	1,00,000
May	2,00,000	1,20,000	1,00,000	1,25,000
June	2,40,000	1,60,000	1,00,000	95,000
Cash balance on April 1st 1,000,000
Pattern of collection
Same month	60%	100%	100%	100%
Next month	40%	-
Purchases, factory overhead, selling and administration are paid in the same month incurred. The company purchased equipment in April of 150,000 and 250,000 in June.
You are required to prepare budget and analyse the performance of each budget
Sales budget
Cash budget

Demonstrate how to interpret various financial statements.

• Evaluate an organization's performance over time. Using financial ratios with relevant benchmarks as a guide
• Compare an organization's performance over time from a set of financial ratios.
• Calculate and show financial ratios using a set of final accounts.