Budget

Unit5CaseStudyBudgetingandRubric.docx

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iMBAX-628 Unit 5 Case Study: Budgeting

A new company, Apex, was started on December 1, 2013. Below are their sales forecast and other financial information. Based on this information, provide an financial analysis that includes the following:

1) Prepare an income statement budget.

2) Prepare a cash flow budget

3) Does the company have enough capitalization?

4) Which month does the company achieve positive cash flow?

Sales Forecast:

January 2014 $100,000

February $150,000

March $200,000

April $200,000

May $300,000

June $300,000

July $300,000

…Each month thereafter

Salaries: $30,000/month

Facilities: $10,000/month

Admin: $10,000/month

Cost of Goods Sold: 60% of sales

COGS cash disbursement 1 month prior to sale

No cash sales.

Receivables are collected as follows:

70% collected the following month of sales

20% two months after the sale

10% three months after the sale

Company has $250,000 in cash currently and a line of credit for $200,000

Rubric for Case Study Assignments

Criterion	Proficient to Exemplary (90–100)	Proficient to Development Needed (80–89)	Development Needed to Deficient (70–79)	Deficient (Below 60 - 69)	Score
Completeness	Complete in all respects; reflects all requirements	Complete in most respects; reflects most requirements	Incomplete in many respects; reflects few requirements	Incomplete in most respects; does not reflect requirements
Understanding	Demonstrates a sophisticated understanding of the topic(s) and issue(s)	Demonstrates an accomplished understanding of the topic(s) and issue(s)	Demonstrates an acceptable understanding of the topic(s) and issue(s)	Demonstrates an inadequate understanding of the topic(s) and issue(s)
Analysis, evaluation, and recommendations	Presents an insightful and thorough analysis of all issues identified; includes all necessary financial calculations	Presents a thorough analysis of most issues identified; includes most necessary financial calculations	Presents a superficial analysis of some of the issues identified; omits necessary financial calculations	Presents an incomplete analysis of the issues identified
	Makes appropriate and powerful connections between the issues identified and the strategic concepts studied in the reading; demonstrates complete command of the strategic concepts and analytical tools studied	Makes appropriate connections between the issues identified and the strategic concepts studied in the reading; demonstrates good command of the strategic concepts and analytical tools studied	Makes appropriate but somewhat vague connections between the issues and concepts studied in the reading; demonstrates limited command of the strategic concepts and analytical tools studied	Makes little or no connection between the issues identified and the strategic concepts studied in the reading
	Supports diagnosis and opinions with strong arguments and evidence; presents a balanced and critical view; interpretation is both reasonable and objective	Supports diagnosis and opinions with reasons and evidence; presents a fairly balanced view; interpretation is both reasonable and objective	Supports diagnosis and opinions with limited reasons and evidence; presents a somewhat one-sided argument	Supports diagnosis and opinions with few reasons and little evidence; argument is one-sided and not objective
	Presents detailed, realistic, and appropriate recommendations clearly supported by the information presented and concepts from the reading	Presents specific, realistic, and appropriate recommendations supported by the information presented and concepts from the reading	Presents realistic or appropriate recommendations supported by the information presented and concepts from the reading	Presents realistic or appropriate recommendations with little, if any, support from the information presented and concepts from the reading
Research	Supplements case study with relevant and extensive research into the present situation of the company; clearly and thoroughly documents all sources of information	Supplements case study with relevant research into the present situation of the company; documents all sources of information	Supplements case study with limited research into the present situation of the company; provides limited documentation of sources consulted	Supplements case study, if at all, with incomplete research and documentation
Writing mechanics	Writing demonstrates a sophisticated clarity, conciseness, and correctness; includes thorough details and relevant data and information; extremely well-organized	Writing is accomplished in terms of clarity and conciseness and contains only a few errors; includes sufficient details and relevant data and information; well-organized	Writing lacks clarity or conciseness and contains numerous errors; gives insufficient detail and relevant data and information; lacks organization	Writing is unfocused, rambling, or contains serious errors; lacks detail and relevant data and information; poorly organized
APA guidelines	Uses APA guidelines accurately and consistently to cite sources	Uses APA guidelines with minor violations to cite sources	Reflects incomplete knowledge of APA guidelines	Does not use APA guidelines
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