Prepare a cash budget (4-5 pages) for a manufacturing company and a memo to new management (2-3 pages) that explains the purpose of a cash budget and its relationship to operational goals.
This assessment will give you the opportunity to construct a complete budget for the manufacturing operations of a fictional company called the Spicer Corporation. In doing so, you will practice analyzing budget practices and techniques.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:
Cash budgets forecast cash needs to achieve operational goals, especially in terms of expected financing. For this assessment, you will act as a controller at a manufacturing company called the Spicer Corporation and your task will be to prepare a cash budget and an associated memo.
You are a controller working for the vice president of finance at a manufacturing company called Spicer Corporation.
The vice president has requested you create a cash budget (4–5 pages) for the coming year:
When you complete the cash budget, include the component parts:
In addition to the cash budget, the vice president has also requested that you prepare a memo to management (2–3 pages) that explains the purpose of a cash budget, its relationship to operational goals, and the process you performed to create it. As part of the memo, identify at least three key aspects of the current cash budget that management should note. For each key aspect, be sure to discuss how the overall cash budget will be impacted if there is a change in the expectation.
Since the vice president of finance has requested these documents, you should make the cash budget and associated memo as clear, well-organized, and readable as possible. The vice president has requested the memo for management be 2–3 pages so that you have enough space to provide some scholarly and/or professional context.
Faculty will use the scoring guide to review your deliverable as if they were your immediate supervisor. Review the scoring guide prior to developing and submitting your assessment.
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