# Accounting homework help

Accounting homework help. ACCT 346 – Weekly Deliverables’ Instructions
Marketing:
You have a segmentation analysis of the lifestyle variables for the adult learners market. The results support the need to invigorate and “refuel” with comfort food that is also nourishing. What better choice for adults than pizza? What will fill this need and differentiate “BUZZ-TIME PIZZA” is the caffeinated tomato sauce.
Operations:
You and a couple of friends will make, bake and deliver made-to-order pizzas, in two sizes. There is room in a garage for refrigeration, preparation tables, and a wood-fired oven. The sales manager will make all deliveries, in their vehicle.
Financing:
Clearly, this is a long-term investment. The three founders, who will each contribute an equal amount, have agreed not to draw a salary for three years. You have hired a sales manager and a part-time office manager.
Week 3 – The first two deliverables involve preparing the necessary financial budgets in order to satisfy creditors and control business operations.
The sales manager has provided the following sales estimates and price points for the first quarter of 2020. Input these values in the worksheet labelled “Operating Budget
January                February              March
Number of pizzas                             40,000                   42,500                   45,000
Sales price for large         \$10.50
Sales price for medium  \$  8.50
There is much debate as to the probable sales mix between the two sizes. Input a product mix of your choice (make sure these two add-up to 100%).
Direct labor consists of your chef, Pepe, who has agreed to a low wage as long as cigarette and bathroom breaks are included. DO NOT CHANGE THIS LABOR RATE
However, you must calculate the Chef’s efficiency rate. Input how many minutes it will take to make one pizza from order to box.
Ingredient and material costs, based on quotes after an extensive request for proposal (RFP), are good for two years. DO NOT CHANGE THE DIRECT MATERIAL RATES
The only variable selling cost is a sales commission based on a percent of sales revenue. Input the percent you wish to pay your sale manager.
Selling expenses include a fixed component for the sales manager’s salary and car allowance for any company business use of their personal auto. Input the monthly salary you wish to pay for compensation, including the car allowance
Input the monthly salary for your office manager.
Calculate the breakeven sales as well as the sales needed to make \$200,000 in net income.
You are to look over this financial plan and make adjustments in the data you have input, in order to obtain the most reasonable and not excessively optimistic results.
The Cash Budget
Once you are satisfied with your operating budget, you must prepare a cash budget based on estimated cash flows from collections on customer receivables and cash payments.
Ensure that the sales revenues for January – March is the same as that on the operating budget.
Using the aging of cash collections, calculate total cash receipts for January – March.
For each month’s cash disbursements, you are to assume that half of the direct material payments are from the current month’s purchases and half are from the prior month’s purchases.
All selling and administrative expenses are paid in the month incurred.
Calculate the forecast direct material cash payments by month.
You are to decide in which month to invest a significant amount of cash in a facility expansion. You are also to decide on the timing and amount of financing that will cover any month in which you do not meet the compensating cash balance requirement.
At the end of the first quarter, management desires to have any new debt for this expansion paid-off.
Week 5 – Identify and explain variations from the budget and make a decision for continuous improvement.
Performance Evaluation
The data for the February master budget columns should come over from the operating budget worksheet.
Verify that the Master budget Net Income is the same as that reported in sheet #1.
Complete a flexible budget for February, showing what net income should have been using the operating budget revenue rate, variable expenses’ rates and fixed costs.
Actual operating results for the month are provided. DO NOT CHANGE THIS DATA
Calculate the variances between the flexible budget and actual results. As being either F for favorable or (U) for unfavorable.
Determine how much of the Net income variance was due to volume and how much was rate-related.
How would you evaluate the actual results? What steps would you take to further investigate and possibly adjust your budget for the rest of the year?
Incremental Analysis – Do we outsource?
Given the relevant costs from the operating budget, prepare a worksheet comparing the relevant data to a vendor’s price quote for doing the production currently done in-house.
Provide an opinion as to whether this business deal is acceptable. Are there any non-financial considerations?
Week 7 – Project Justification
It is now time to prepare a capital budget. The idea is to prepare a list of acceptable projects in which to spend in the first quarter in order to increase the value of operations. Recall that the cash budget included funds for plant expansion.
The estimated future cash flows arising from sales, net of operating costs are given. The hurdle rate represents the interest rate to borrow these funds plus a 2% risk factor. Use this percent in order to discount the cash flows.
The project cost and the salvage value, as well, have already been input into the worksheets.

Input these cash flows:
Sales revenues: Years 1 – 5 \$135,000 per year; Years 6-10 \$200,000 per year
Operating costs: Years 1-5   \$ 95,000 per year; Years 6-10 \$ 135,000 per year
Decide in which year (5-7) to spend the \$85,000 of major maintenance
Complete the five (5) measures at the bottom of the worksheet.
Provide a recommendation as to whether this project is acceptable.

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