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
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&"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved.    
&"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved.    
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.
            Answer:
        (2)    Calculate the
eak even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.
            Answer:
        (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.
            Answer:
&"Arial,Regular"&10Wk 3 Financial Exercises - Part 2
HCS/385 v4
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&"Arial,Regular"&10HCS/385 v4
&"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved.    
&"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved.    
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?
            Answer:
        (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?
            Answer:
        (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?
            Answer:
        (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?
            Answer:
        (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?
            Answer:
&"Arial,Regular"&10Wk 3 Financial Exercises - Part 3
HCS/385 v4
Page &P of &N
&"Arial,Regular"&10HCS/385 v4
&"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved.    
&"Arial,Regular"&8Copyright© 2020 by University of Phoenix. All rights reserved.