You will take on the role of a consultant and provide two reports on using accounting information for decision-making to a fictitious organization so it can better prepare for the future. Provide the first report,which will focus on financial information and budgeting. Provide a second report, that will focus on performance reports and balanced scorecards.

AMcarParts, Inc., a midsize manufacturer of after-market automotive parts, has had an unexpected amount of turnover in its leadership staff, leaving the owners in need of someone who can help them understand accounting concepts, such as strategic planning, budgeting, and forecasting. You have been hired as a consultant to help the owners understand this information for future planning and to assist them with some immediate budgeting needs and concerns.

The product of your analysis will be a business report on using accounting information for decision-making that would be delivered to the owners of a midsize manufacturer. In addition to the requirements that follow, be sure to incorporate references

For this part of your business report, you are to provide an analysis of financial statements, strategic planning, budgeting, and forecasting. the organization's leaders would use this information to develop their draft budget, which they would then provide to you for budget preparation.

In your analysis, address the following:

1. Describe the four basic financial statementsincome statement, statement of stockholders' equity, statement of financial position (also known as a balance sheet), and statement of cash flowsand the purpose of each.
2. Compare the concepts of strategic planning, budgeting, and forecasting for an organization. Specifically:
   1. Describe each concept and the ways they are interrelated as well as their differences.
   2. Analyze the role that each concept plays within an organization. In your analysis, be sure to include how strategic planning, budgeting, and forecasting are used to improve organizational performance.
   3. Be sure to include citations and references to support your work.
3. Explain what responsibility centers are (in general) as well as the three types of responsibility centers: cost centers, profit centers, and investment centers.
4. Identify the decision rights assigned to each type of center, being sure to include examples for each type of responsibility center.

Use that information to provide a budget for the upcoming year by filling in the highlighted cells in the first table. Then, using the Line Item Notes table, illustrate to the organization how each line item in the budget was prepared by filling in the highlighted cells.

Data

	AMcarParts, Inc. Income Statement For the Year Just Ended
Revenues		$ 325,000,000
Operating Expenses Salaries and Wages	$ 175,000,000
Payroll taxes, etc.	70,000,000
Supplies	12,975,000
Delivery Fleet	5,020,000
Communications	525,000
Insurance	1,975,000
Office Supplies	195,000
Miscellaneous Operating Income	1,835,000	267,525,000
	57,475,000
Other Income/Expense Interest expense Income Before Income Taxes		1,980,000
	55,495,000
Provision for Income Taxes Net Income		12,208,900
	$ 43,286,100

Notes and Assumptions	Change	Percentage
1. Revenue is from selling after-market automotive parts.	Increase	2%
2. Salaries are gross for all employees.	Increase	2%
3. Payroll taxes are 40% of salaries and wages.	No Change	0%
4. Supplies include raw materials, hardware, tools, etc.	Increase	5%
5. Gas, maintenance, etc are for delivery vehicles.	Increase	5%
6. Company communication plan.	Increase	2%
7. Insurance is for liability, vehicles, and unemployment.	Increase	10%
8. Office supplies include all supplies not associated with manufacturing.	Increase	3%
9. Miscellaneous accounts for all other expenses not covered above.	Increase	7%
10. Interest expense is for purchase of the delivery fleet.	No Change	0%
11. Provision for income taxes is 22%	No Change	0%