Great Deal! Get Instant \$10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

# Week 3 - Part 1 Week Three Financial Exercises Part 1 Using the table below, describe the types of budgets. In your description, include: • The objective of the budget • How the budget assists an...

Week 3 - Part 1
Week Three Financial Exercises
Part 1
Using the table below, describe the types of budgets. In your description, include:
• The objective of the budget
• How the budget assists an organization in managing its financial activities
• What types of data need to be included in that specific budget
Type of Budget    Description
Cash Flow
Operating
Sales
Static
Financial
&"Arial,Regular"&10Wk 3 Financial Exercises - Part 1
HCS/385 v4
Page &P of &N
&"Arial,Regular"&10HCS/385 v4
Week 3 - Part 2
Week Three Financial Exercises
Part 2
Complete the following problems using the following ratios:
Sales level at which operating income is zero
o    If sales above
eakeven, then profit
o    If sales below
eakeven, then loss
o    Fixed expenses = total contribution margin
Total sales = total expenses
Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit
Break Even Point: Sales \$ = Fixed expenses + Operating Income / Contribution Margin Ratio
(1)    Calculate the
eak even number of units if the fixed expenses are \$7,000 and the contribution margin is \$14 per unit.
(2)    Calculate the
eak even sales dollars if the fixed expenses are \$7,000 and the contribution ratio is 40%.
(3)    Calculate the
eak even number of units with a target profit of \$120,000 if the fixed expenses are \$15,000 and the contribution margin is \$60 per unit.
&"Arial,Regular"&10Wk 3 Financial Exercises - Part 2
HCS/385 v4
Page &P of &N
&"Arial,Regular"&10HCS/385 v4
Week 3 - Part 3
Week Three Financial Exercises
Part 3
Complete the following problems:
(1)    How much will you have saved after 6 years by contributing \$1,200 at the end of each year if you expect to earn 11% on the investment?
(2)    A business owner plans to deposit his annual profits in an investment account earning a 9% annual return. If the owner starts with their first deposit today for \$22,000 and expects to make the same profit for the next 7 years, how much will be saved for retirement at that point?
(3)    An investor plans to invest \$500 a year and expects to get a 10.5% return. If the investor makes these contributions at the end of the next 20 years, what is the present value of this investment today?
(4)    What is the present value (PV) of a 12-year lease a
angement with an interest rate of 7.5 percent that requires annual payments of \$4,250 per year with the first payment being due now?
(5)    A recent college graduate hopes to have \$200,000 saved in their retirement account 25 years from now by contributing \$150 per month in a 401(k) plan. The goal is to earn 10% annually on the monthly contribution. Will they have the \$200,000 at the end of the 25 years?
&"Arial,Regular"&10Wk 3 Financial Exercises - Part 3
HCS/385 v4
Page &P of &N
&"Arial,Regular"&10HCS/385 v4
Answered Same Day Jun 22, 2021

## Solution

Rithik answered on Jun 22 2021
Week 3 - Part 1
Week Three Financial Exercises
Part 1
Using the table below, describe the types of budgets. In your description, include:
• The objective of the budget
• How the budget assists an organization in managing its financial activities
• What types of data need to be included in that specific budget
Type of Budget    Description
Cash Flow     Cash flow is considered as the net amount of cash and cash related equivalents that is solely related to the buisness. The main or the primary objective of cash flow is to help the company in order to take decsion for same and useful for making the plan by collecting all the information about the company. The amount of data that is use in cash flow is investing and financing kind of activities.
Operating     Operating budget is a budget that is beneficial for forecasting the revenues and expenses for more than one period or the future periods. In order to maintain or organise the financial budhet for the financial activities it provides better control over managing the cash inflows and outflows and meanwhile it also used to predict the expenses of production and sales.The data which is essentinal to plainning the budget is proper information about the inflows and outflows.
Sales    It provide a overall estimation of the quantity of goods and services in which company posses through out the year or the future period. Many of the sales budget based on the monthly and quaterly figures. For maintaing the financing activities it fixed the target which the company have to achieve in order to estimate the future inflows and outflows with the help of sales budgeting. The type of data need in sales budgeting is promotion and advetisement, revenue and sales volume of the goods and...
SOLUTION.PDF