Case Analysis: Xample Manufacturing Annual Draft Operating Budget

[WLO: 2] [CLO: 6]

Prior to beginning work on this assignment, read the A Budget Model for a Small Manufacturing Firm article. A Writing a Case Study AnalysisLinks to an external site. resource is available in the Writing Center.

Review the Xample Manufacturing Case below. Using the information and the financial data derived in the Xample case, and after reading Fleming’s article, you will create an annual budget in draft form divided into four periods (Quarter 1, Quarter 2, Quarter 3, and Quarter 4) using the provided budget template below.

Xample Manufacturing Case

Consider the following case scenario: Imagine you are a manager of a small plastic parts manufacturing contracting business making parts under contract to electronic consumer goods industry and defense industry companies, and you are in charge of developing a projected annual operating budget.

Your budgetary figures are as follows: For fiscal year 2019, your firm received a $3 million contract from Sony to provide small parts for its current Ultra HD Blu-Ray Player, as well as various contracts totaling $1.75 million from other business. Xample also has an $180,000 annual contract from Boeing, and a contract for small plastic parts from Ratheon totaling $1.6 million annually.

Your chief financial officer (CFO) has provided you with the following annual expenses:

Xample Manufacturing Expenses

 

Annual   Salaries

$1.63   million

 

Annual   Benefits

$   245,000

 

Annual   Rent

$   760,000

 

Annual   Insurance

$   45,000

 

Annual   Depreciation

$   780,000

 

Annual   Overhead

$ 180,000

 

Annual   Supplies

$   96,000

 

Annual   Raw Materials

$ 2.6   million

Using the Xample Manufacturing Operating Budget Template Download Xample Manufacturing Operating Budget Template,

• Complete      a 12-month operating budget.
  • Include       the projected net profit (or loss).
  • Turn       in with the summary below.

After completing the budget template, please write a two- to three-page summary, and include the following:

• Explain      the process for creating an operating budget and its importance.
• Describe      how revenues and expenses are grouped for planning and control in the      financial statements.

The Case Analysis: Xample Manufacturing Annual Draft Operating Budget paper

• Must      be three to four double-spaced pages in length (not including title and      references pages and formatted according to APA      StyleLinks to an external site. as outlined in the Writing      Center’s APA Formatting for Microsoft WordLinks to an      external site. resource.
• Must      include a separate title page with the following:
  • Title       of paper in bold font
    • Space        should appear between the title and the rest of the information on the        title page.
  • Student’s       name
  • Name       of institution (University of Arizona Global Campus)
  • Course       name and number
  • Instructor’s       name
  • Due       date
• Must      utilize academic voice. See the Academic      VoiceLinks to an external site. resource for additional      guidance.
• Must      include an introduction and conclusion paragraph. Your introduction      paragraph needs to end with a clear thesis statement that indicates the      purpose of your paper.
  • For       assistance on writing Introductions & ConclusionsLinks to an external       site. as well as Writing       a Thesis StatementLinks to an external site., refer to the       Writing Center resources.
• Must      use at least two credible or scholarly sources in addition to the course      text.
  • The Scholarly, Peer-Reviewed, and Other Credible SourcesLinks       to an external site. table offers additional guidance on       appropriate source types. If you have questions about whether a specific       source is appropriate for this assignment, please contact your       instructor. Your instructor has the final say about the appropriateness       of a specific source for a particular assignment.
• Must      document any information used from sources in APA Style as outlined in the      Writing Center’s APA: Citing Within Your PaperLinks to an external site. guide.
• Must      include a separate references page that is formatted according to APA      Style as outlined in the Writing Center. See the APA: Formatting Your References ListLinks to an      external site. resource in the Writing Center for specifications.