Homework: Financial Plan
In this homework, you will be evaluating a cash budgeting scenario and developing a financial plan for a fictional business.
Task
Review the Cash Budgeting Scenario.
Calculate the cash budget using the Cash Budget Worksheet, and use the Cash Budget Worksheet Answers to review your work.
Write a 700 to 1,050 words financial plan in which you complete the following:
o Discuss potential cash budget benefits and pitfalls for the business, including how the budget supports the strategic goal of the business to increase revenue by 10% annually.
o Outline your expected business expenses (e.g. fixed and variable costs, marketing, labor, operations, insurance) and sources of revenue (e.g. funding, sales of products/services).
o Include an income statement, balance sheet, and cash flow statement.
o Explain how you will adjust your small business cash budget to manage contingencies (such as emergencies and market shifts) as well as product and distribution shifts.
o Compare the differences between a cash budget and an operating budget, and explain why both are beneficial.
o Explain why a budget variance analysis is crucial for the operation of a business, and discuss how often a budget variance analysis should be performed.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.