Prepare budgets

Description

Assessment Description
This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organisation. You will also need to review the case study provided and prepare a budget (in electronic spreadsheet format) and budget notes for distribution and implementation in the organisation.

Assessment Requirements

1. Read the case study.

2. Analyse the case study information and respond to the questions in the space provided.

3. Analyse the case study and complete the following:

a. Develop a sales and profit budget, cash flow budget and debtor ageing summary using electronic spreadsheets (as separate worksheets) making sure each budget is divided into quarterly periods and that you use previous financial data to determine allocations for resources. Please refer to ‘Budgeting policy and procedure’ for templates.

b. Ensure each budget you prepare complies with the organisational and policies and procedures as provided.

c. Develop budget notes which include:

i. identification of reasons for previous profits and losses

ii. your comment on the effectiveness of existing financial management approaches

iii. all assumptions and basis that have been made or used to form budgets

iv. any relevant notes regarding implementation and monitoring of budget expenditure.

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