Budgeting Case Analysis

Travel Space Trailers Budgeting Case

1. Read the case

2. Use the exhibits in the Excel file to prepare a six-month budget. Use the blanks tab in the Excel file to prepare:

a. Sales budget

b. Production budget (note: ending inventory should be 300 units + 20% of next month’s sales)

c. Purchases budget

d. Cash budget (note the collections pattern for sales is provided and accounts payable is paid the following month Exhibit 7 provides beginning accounts payable balances). The company wants to maintain a $100,000 cash balance, so you may need to borrow to maintain the desired balance.

3. Based on the descriptions of the budgeting process for Travel-Space Trailers, recommend ways in which the budgeting process could be improved.