Master Budget Analysis
By:Chief Budget Officer
100 University Drive
Edmond, OK 73034
The Chief Budget Officer of Bronco Sales Company has created the following Master Budget for B.S.C’s upper management. This following presentation provides all of the necessary individual budgets along with an analysis, recommendations, and conclusion section, for the operating period beginning July 1 and ending September 30. All of the financial statements are provided by and are the responsibility of B.S.C’s upper management; also, the analysis and recommendation section are based solely upon information taken from the financials with full cooperation between the Chief Budget Officer and B.S.C.’s management. The following section will include short explanations of each schedule and observations about them.
Schedule 1- Sales Budget
The main goal for a merchandise company’s sales budget is to predict the dollars of sales for a period of time. It is the usually the first schedule prepared because so many other schedules depend on it. This makes it the primary key to the entire master budget process. B.S.C is expected to have a stronger sales period than the period previously budgeted, and should expect even bigger sales totals approaching the holidays. Schedule 2- Expected Cash Collections
This budget relies on the accuracy of the Sales Forecast. And good cash management requires good planning and controlling of cash, so it will be available to meet obligations. Cash collections for the period will steadily increase with September having the highest monthly total. Schedule 3- Purchases Budget in Units
Is only applicable for merchandising or manufacturing firms only, and it projects the quantity of goods to be purchased for the budgeted period. The amount of purchases in units will increase along with the increase of sales for the period. Schedule 4- Cash Disbursements
This budget is...