View the step-by-step solution to:

BSAD310 Financial Accounting Systems Sam's Sporting Goods Budget Analysis Directions: Pretend you are an owner of Sam's Sporting Goods. Consider the...

BSAD310 Financial Accounting Systems
Sam’s Sporting Goods Budget Analysis


Pretend you are an owner of Sam’s Sporting Goods. Consider the information provided in the chart below. Then create a projected budget and determine what actions management may need to take to maximize return.

1. Create a projected budget for the next 18 months, starting the 1st of next month.

2. Evaluate the projected budget and determine if the store is profitable for each month and track Cash Flow per month.

3. Determine and defend recommendations on changes that you would make or actions you would take as an owner to help increase the Return on Investment of $15M. Calculate the ROI at the 18 month mark.

Suggestion: Research using Google or Yahoo Finance to determine any cost variances from Industry Averages or Major Competitors.

Budget Item


Sales $1,000,000/mo

Up 20% during April, May, Aug, Nov, Dec

COGS 50%

Drops 15% in April due to Massive Summer Ordering


Returns 3% Feb-Nov, 12% Dec - Jan

Admin Fees 4% of Gross Sales


Current Cash on Hand $25,000

Starting amount for Cash Flow Analysis

Depreciation Expense Straight-Line Method


General Mgr. and Asst. Mgr. Salaries

make $10,000 combined

Grade A Retail space $30/ft. + 7% gross sales

Increases to $32/ft. in September

Health Insurance $400/employee 15/FT/40hr employees

Increases 15% on June 1

Insurance Policy $20M Umbrella, 6% of Gross

Increases 10% on July 1

Management Bonus

Bonus is 10% of Net Income if NI>3% of Gross Sales

Marginal Tax Rate


Marketing 5% of Gross Sales

Up 50% during April, May, Aug, Nov, Dec

Other Misc. Expenses

5% of Gross Sales

Outside Accounting & Legal Fees 2% of Gross Sales


Startup Cost for the business

$15,000,000 cash

Utilities on 15,000 sf at 10cent/ft./mo.

Increases 20% on Jan 1, Plus Up 10% in May, June, July

Wages including Taxes, UEI $14/hr.

Increases 8% on June 1

Budget Analysis:

Write a budget analysis that includes the following:

1. An Excel spreadsheet showing 18 month projected budget for Sam’s Southwest Sporting Goods.

2. A month-by-month Cash Flow Analysis to aid in decision-making process. Calculate the ROI at the 18-month mark based upon the $15M investment.

3. At least four recommendations to increase ROI based upon the projected budget, cash flow analysis and any research. Describe and defend the four recommendations with reputable professional support.

1,000-1,250-words excluding the title page and references. Use at least three scholarly or professional journal articles written within the last five years cited in APA format. Include an introduction and conclusion, plus the projected budget spreadsheet, and other charts. Insert the Excel spreadsheet as a table into the document. Do not attach the spreadsheet as a separate file.

Consult the Written Assignment Grading Rubric to ensure you are meeting the assignment’s criteria as this information and the rubric will be used to assess your work.

Sign up to view the entire interaction

Top Answer

The way to approach this... View the full answer


Sam’s Sporting Goods Budget Analysis
Sam’s Sporting Goods is preparing a budget to estimate its expenditures in relation to its
expected collections commonly referred to as cash...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online