ACC 561 WEEK 6 Managerial Analysis
ACC 561 WEEK 6 Managerial Analysis
ACC 561 WEEK
6 Managerial Analysis
ACC 561 WEEK 6 Managerial Analysis
ACC 561 WEEK 6 Managerial Analysis
Purpose of Assignment
This comprehensive case requires students to evaluate a static
budget and prepare flexible budgets to meet managerial needs. Students are
required to calculate and analyze variances and discuss how variances are
critical to managerial decision making.
Assignment Steps
Resources: Generally Accepted Accounting Principles (GAAP), U.S.
Securities and Exchange Committee (SEC), Green Pastures Static Budget Income
Statement
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are
also additional tutorials via the web offering support for Office products.
Scenario: Green Pastures is a 400-acre
farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding
of broodmares and their foals. A recent economic downturn in the thoroughbred
industry has led to a decline in breeding activities, and it has made the
boarding business extremely competitive. To meet the competition, Green
Pastures planned in 2017 to entertain clients, advertise more extensively, and
absorb expenses formerly paid by clients such as veterinary and blacksmith
fees.
The budget report for 2017 is
presented as an attachment. As shown, the static income statement budget for
the year is based on an expected 21,900 boarding days at $25 per mare. The
variable expenses per mare per day were budgeted: feed $5, veterinary fees $3,
blacksmith fees $0.25, and supplies $0.55. All other budgeted expenses
were either semifixed or fixed.
During the year, management
decided not to replace a worker who quit in March, but it did issue a new
advertising brochure and did more entertaining of clients.
Develop a minimum 700-word
examination of the financial statements and include the following:
- Based on the static budget report:
·
What was the primary cause(s)
of the loss in net income?
·
Did management do a good,
average, or poor job of controlling expenses?
·
Were management’s decisions to
stay competitive sound?
- Prepare a flexible budget report for the year.
- Based on the flexible budget report:
·
What was the primary cause(s)
of the loss in net income?
·
Did management do a good,
average, or poor job of controlling expenses?
·
Were management’s decisions to
stay competitive sound?
- What course of action do you recommend for the management of
Green Pastures?
Show your work in Microsoft® Word or Excel®.
Complete calculations/computations using
Microsoft® Word or Excel®.
Format the assignment consistent
with APA guidelines.
Click the Assignment Files tab
to submit your assignment.
V112417
ACC 561 WEEK 6 Managerial
Analysis
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