CASE ANALYSIS: XAMPLE MANUFACTURING ANNUAL DRAFT OPERATING BUDGET

Prior to beginning work on this assignment, read A Budget Model for a Small Manufacturing Firm (1995).

Review the Xample Manufacturing Case below. Using the information and the financial data derived in the Xample Case, and after reading Fleming’s article, 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.

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 contract 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,

• Complete a 12-month operating budget in which you include the projected net profit (or loss). Turn in with the summary,

After completing the budget template, please write a two- to three-page summary including 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 3 to 4 double-spaced pages in length (not including the title and reference pages and formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.).
• Must include a separate title page with the following:
  • Title of paper
  • Student’s name
  • Course name and number
  • Instructor’s name
  • Date submitted
• Must begin with an introductory paragraph that has a succinct thesis statement.
• Must address the topic of the paper with critical thought.
• Must end with a conclusion that reaffirms your thesis.
  • For assistance on writing Introductions & Conclusions (Links to an external site.) as well as Writing a Thesis Statement (Links to an external site.), refer to the Ashford Writing Center resources.
• Must use at least two scholarly sources in addition to the course text.
  • The Scholarly, Peer Reviewed, and Other Credible Sources (Links 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 all sources in APA style as outlined in the Ashford Writing Center’s Citing Within Your Paper guide. (Links to an external site.)
• Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center. See the Formatting Your References List (Links to an external site.) resource in the Ashford Writing Center for specifications.

Submit both the Operating Budget Template and your Case Analysis: Xample Manufacturing Annual Draft Operating Budget paper to Waypoint.

Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.