Week 5 Questions:
1) Use your budgeted income statement to create a flexible budget for a 5% and 10% increase in sales and again for a decrease in sales. You may have to fix your inventory schedule with these changes in sales forecast. What changes did you notice in your Cash Budget when you inserted the new sales figures?
2) Go to the the Management Discussion and Analysis section in the annual report of your company (If one exists). What long term financial goals are outlined?
3) List three non-financial goals that your company may use in a balanced scorecard (one in each section). How can these goals be measured exactly?
4) Calculate the return on investment for your company before the master budget was made and after. Explain why this changed.
