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Your finished case will consist of six or seven budgets (a
sales budget, a production budget in units, a purchases budget, a budgeted
income statement, a contribution margin income statement, a cash budget, and,
if necessary, a capital expenditure budget.)
You will also have four or five narrative
reports (a sales budget report, a purchases budget report, an income statement
report, a cash budget report, and an explanation of your capital budget, if
Narrative reports are reports that are in
the form or a white paper that clearly explains the numeric entries on your
budgets. The length of the narrative
reports will depend on the particular report.
In general, you should be able to prepare the sales budget report on one
or two pages, the purchases budget report on one or two pages, the income statement
report on one page, and the cash budget report on one page. In this case, the capital budget report would
be less than one page. You should not
worry if one of your reports is more or less than the recommendation given
here—just be sure you cover all of the important points and satisfactorily
explain the numeric entries in your budget.
Also, be sure you explain the process of “how” your numbers were
determined. In this regard, it is not
necessary or desirable to explain the exact calculations. Consider your audience and prepare a report
that would be suitable for executives making plans and decisions for the
There is a detailed requirements in the documents, please read it carefully!!
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