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- Read the case and analyze the information.
- Prepare an operating budget in standard “income statement” format.
- Prepare a narrative report (or notes to the income statement) addressing why/how quantitative items were selected. The following items must be explained:
- Sales Forecast
- Purchases budget (raw materials, labor, all resources)
- Operating Expenses
- Prepare a cash budget using any acceptable format. The following items must be explained or shown on the budget:
- The process by which cash inflows were projected.
- The process by which cash outflows were projected.
- The process by which financing, if applicable, was determined.
- How interest and other financing charges were calculated.
- Prepare a capital budget using any acceptable format.