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ACCT310 Unit 4 IP Reliable Company
You are the managerial accountant at Reliable Company. You have been assigned to support the marketing department and manage its master budget. The marketing department is responsible for the following:
• Managing the firm's marketing
• Hiring subcontractors
• Selling the consulting expertise to smaller outside firms
The department's expenses are as follows:
• Salaries and benefits of $48,000/month
• Web site operations of $21,000/ month
• Online advertising expenses of $15,000/month
• Miscellaneous expenses of $3,500/month
The sales forecast for its consulting services are as follows:
• April: $190,000
• May: $200,000
• June: $205,000
The department pays a sales commission of 5%, and this is paid in the following month. Subcontractor expenses are estimated at 45% of sales and are paid the month after they are billed. Consulting fees are collected 20% in the month of sale, 70% in the following month, and 10% in the second month following sale.
Refer to the attached schedules.
Develop a master budget for the marketing department.
This task includes the following:
• Completing the attached schedules for a master budget for the marketing department
• Supporting schedules for cash disbursements and collections
Analyze additional needs and resources based on those budgets. Make recommendations based on those budgets.
Respond to the following for this assignment:
• Develop the marketing department's master budget.
• Prepare a schedule of expected cash collections.
• Make recommendations based on those budgets.
Using the schedule template provided, complete the marketing department’s master budget and schedule of expected cash collections. In a 4-page report, provide your recommendations to support the marketing master budget. Submit both documents to complete the assignment. Please use APA formatting requirements for the word document.
Schedule:
Budget Data:
Reliable Company Marketing Department Master Budget
Data April May June
Budgeted consulting revenues $ 190,000 $ 200,000 $ 205,000
Less: Sales commissions (5% of sales) $ 9,500 $ 10,000 $ 10,250
Less: Cost of sales (45% of sales) $ 85,500 $ 90,000 $ 92,250
Net consulting revenues $ 95,000 $ 100,000 $ 102,500
Accounts Receivable Collections
Month of sale 20%
Month following sale 70%
Second month following sale 10%
Monthly Budgeted Expenses
Salaries and benefits $ 48,000
Web site operations $ 21,000
Online advertising expenses $ 15,000
Other misc. expenses $ 3,500
Accounts Payable Payments
Month of sale 40%
Month following sale 60%
Accounts Payable
Online advertising expenses $ 15,000
ANSWER WILL BE SENT BY EMAIL.
• Managing the firm's marketing
• Hiring subcontractors
• Selling the consulting expertise to smaller outside firms
The department's expenses are as follows:
• Salaries and benefits of $48,000/month
• Web site operations of $21,000/ month
• Online advertising expenses of $15,000/month
• Miscellaneous expenses of $3,500/month
The sales forecast for its consulting services are as follows:
• April: $190,000
• May: $200,000
• June: $205,000
The department pays a sales commission of 5%, and this is paid in the following month. Subcontractor expenses are estimated at 45% of sales and are paid the month after they are billed. Consulting fees are collected 20% in the month of sale, 70% in the following month, and 10% in the second month following sale.
Refer to the attached schedules.
Develop a master budget for the marketing department.
This task includes the following:
• Completing the attached schedules for a master budget for the marketing department
• Supporting schedules for cash disbursements and collections
Analyze additional needs and resources based on those budgets. Make recommendations based on those budgets.
Respond to the following for this assignment:
• Develop the marketing department's master budget.
• Prepare a schedule of expected cash collections.
• Make recommendations based on those budgets.
Using the schedule template provided, complete the marketing department’s master budget and schedule of expected cash collections. In a 4-page report, provide your recommendations to support the marketing master budget. Submit both documents to complete the assignment. Please use APA formatting requirements for the word document.
Schedule:
Budget Data:
Reliable Company Marketing Department Master Budget
Data April May June
Budgeted consulting revenues $ 190,000 $ 200,000 $ 205,000
Less: Sales commissions (5% of sales) $ 9,500 $ 10,000 $ 10,250
Less: Cost of sales (45% of sales) $ 85,500 $ 90,000 $ 92,250
Net consulting revenues $ 95,000 $ 100,000 $ 102,500
Accounts Receivable Collections
Month of sale 20%
Month following sale 70%
Second month following sale 10%
Monthly Budgeted Expenses
Salaries and benefits $ 48,000
Web site operations $ 21,000
Online advertising expenses $ 15,000
Other misc. expenses $ 3,500
Accounts Payable Payments
Month of sale 40%
Month following sale 60%
Accounts Payable
Online advertising expenses $ 15,000
ANSWER WILL BE SENT BY EMAIL.
