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...

I need the following assignment completed:


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.

  • Create a projected budget for the next 18 months, starting the 1st of next month.
  • Evaluate the projected budget and determine if the store is profitable for each month and track Cash Flow per month.
  • 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

Details

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 

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

Admin Fees 4% of Gross Sales

Static

Current Cash on Hand $25,000

Starting amount for Cash Flow Analysis

Depreciation Expense Straight-Line Method

$240,000/yr

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

34%

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

Static

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:

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

Requirements:
1,000-1,250-words excluding the title page and references. Use at least three scholarly or professional journal articles originating from the United States of America written from 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.

BSAD310 Financial Accountng SysTems Sam’s Sportng Goods BudgeT Analysis Directons: Pretend you are an owner of Sam’s SporTng Goods. Consider the informaTon provided in the chart below. ±hen create a projected budget and determine what acTons management may need to take to maximize return. 1. Create a projected budget for the next 18 months, starTng the 1 st of next month. 2. Evaluate the projected budget and determine if the store is proFtable for each month and track Cash ²low per month. 3. Determine and defend recommendaTons on changes that you would make or acTons you would take as an owner to help increase the Return on Investment of $15M. Calculate the ROI at the 18 month mark. SuggesTon: Research using Google or Yahoo ²inance to determine any cost variances from Industry Averages or Major CompeTtors. BudgeT ITem DeTails 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 Returns 3% Feb-Nov, 12% Dec - Jan Admin Fees 4% of Gross Sales Static Current Cash on Hand $25,000 Starting amount for Cash Flow Analysis Depreciation Expense Straight-Line Method $240,000/yr 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 34% 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 Static 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 SporTng Goods. 2. A month-by-month Cash ²low Analysis to aid in decision-making process. Calculate the ROI at the 18-month mark based upon the $15M investment. 3. At least four recommendaTons to increase ROI based upon the projected budget, cash ³ow analysis and any research. Describe and defend the four recommendaTons with reputable professional support.
Background image of page 1
Requirements: 1,000-1,250-words excluding the Ttle page and references. Use at least three scholarly or professional journal arTcles wri±en within the last Fve years cited in APA format. Include an introducTon and conclusion, plus the projected budget spreadsheet, and other charts. Insert the Excel spreadsheet as a table into the document. Do not a±ach the spreadsheet as a separate Fle. Consult the Wri±en Assignment Grading Rubric to ensure you are meeTng the assignment’s criteria as this informaTon and the rubric will be used to assess your work.
Background image of page 2
WRITING ASSIGNMENT GRADING RUBRIC A Outstanding B Good C Average D Below Average F Unacceptable 75% Possible 67.5% - 75.0% 60.0% - 67.4% 52.5% - 59.9% 45.0% - 52.4% 0 Assignment Objec±ves Comprehension Paper demonstrates conceptual understanding, presents arguments, defends raTonale, and integrates mulTple viewpoints for each assignment objecTve with exceptonal support from at least three reputable sources (other than course text or materials) and incorporates a real world applicaTon. Paper demonstrates conceptual understanding, presents arguments, defends raTonale, and integrates mulTple viewpoints for each assignment objecTve with sTrong support from at least two reputable sources (other than course text or materials). Paper demonstrates conceptual understanding, presents arguments, defends raTonale, and integrates mulTple viewpoints for each assignment objecTve with adequaTe support from at least two reputable sources (other than course text or materials). Paper may not meet word count minimum or may demonstrate parTal conceptual understanding, or presentaTon of arguments and defense of raTonale have inadequaTe support from reputable sources (other than course text or materials). Demonstrates li±le eFort or understanding of concepts. Comments: 15% Possible 13.5% - 15.0% 12.0% - 13.4% 10.5% - 11.9% 9.0% - 10.4% 0 Wri±ng Mechanics Delivery Paper has a clear and speci²c thesis, focuses on relevant and speci²c ideas using smooth and logical transiTons, excellent wriTng voice, ³awless grammar, and correct spelling. Paper has a clear and speci²c thesis, focuses on relevant and speci²c ideas using smooth and logical transiTons, strong wriTng voice, with only a few minor grammaTcal or spelling errors. Paper has a clear and speci²c thesis, focuses on relevant and speci²c ideas but may lack consistent organizaTon and have distracTng wriTng traits, noTceable grammaTcal errors and incorrect spelling. Paper does not focus on a single idea, falls short of expected SCPS wriTng competencies, ideas are masked by a saturaTon of grammaTcal errors or incorrect spelling. Paper lacks a unifying claim or idea, shows li±le eFort, or is incomplete. Comments: 10% Possible 9.0% - 10.0% 8.0% - 8.9% 7.0% - 7.9% 6.0% - 6.9% 0 APA Forma²ng Clarity Paper is forma±ed correctly according to APA standards using a Ttle page, in-text citaTons, introducTon, major secTon headings for each assignment objecTve, conclusion, and a reference page. Paper has only a few minor APA forma´ng errors and provides a Ttle page, in-text citaTons, introducTon, major secTon headings for each assignment objecTve, conclusion, and a reference page. Paper has several APA forma´ng errors but provides a Ttle page, in-text citaTons, introducTon, major secTon headings for each assignment objecTve, conclusion, and a reference page. Paper is saturated with APA forma´ng errors and may not provide a Ttle page, in-text citaTons, introducTon, major secTon headings for each assignment objecTve, conclusion, or a reference page. Paper is not in APA format and/or fails to cite sources. Comments: Total Percentage __________ x Assignment Value __________ = Score __________
Background image of page 1
Sign up to view the entire interaction

Top Answer

The answer to this question... View the full answer

ss.xlsx

Budget Item
Sales $1,000,000/mo
Returns
Net sales
;ess:COGS 50%
Gross profit
Expenses:
Admin Fees 4% of Gross Sales
Depreciation Expense Straight-Line
Method
General Mgr. and Asst. Mgr. Salaries...

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