Withers Breaux Corp. is a manufacturing company that produces grooming appliances such as hair dryers and curling irons. The managers of each division prepare a master budget, but Withers Breaux does not require budgeted financial statements.
Required:
Write a memo to Withers Breaux’s upper management explaining why budgeted financial statements are important. Include in your memo a discussion of the potential for misleading budgets that do not contain pro forma financial statements.