Case Analysis: Xample Manufacturing Annual Draft Operating Budget
[WLO: 2] [CLO: 6]
Prior to beginning work on this assignment, read the A Budget Model for a Small Manufacturing Firm article. A Writing a Case Study AnalysisLinks to an external site. resource is available in the Writing Center.
Review the Xample Manufacturing Case below. Using the information and the financial data derived in the Xample case, and after reading Fleming’s article, you will 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 below.
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 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 Download Xample Manufacturing Operating Budget Template,
- Complete a 12-month operating budget.
- Include the projected net profit (or loss).
- Turn in with the summary below.
After completing the budget template, please write a two- to three-page summary, and include 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 three to four double-spaced pages in length (not including title and references pages and formatted according to APA StyleLinks to an external site. as outlined in the Writing Center’s APA Formatting for Microsoft WordLinks to an external site. resource.
- Must include a separate title page with the following:
- Title of paper in bold font
- Space should appear between the title and the rest of the information on the title page.
- Student’s name
- Name of institution (University of Arizona Global Campus)
- Course name and number
- Instructor’s name
- Due date
- Title of paper in bold font
- Must utilize academic voice. See the Academic VoiceLinks to an external site. resource for additional guidance.
- Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
- For assistance on writing Introductions & ConclusionsLinks to an external site. as well as Writing a Thesis StatementLinks to an external site., refer to the Writing Center resources.
- Must use at least two credible or scholarly sources in addition to the course text.
- The Scholarly, Peer-Reviewed, and Other Credible SourcesLinks 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 any information used from sources in APA Style as outlined in the Writing Center’s APA: Citing Within Your PaperLinks to an external site. guide.
- Must include a separate references page that is formatted according to APA Style as outlined in the Writing Center. See the APA: Formatting Your References ListLinks to an external site. resource in the Writing Center for specifications.
Xample Manufacturing Operating Budget (2019)
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Quarter 1 |
Quarter 2 |
Quarter 3
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Quarter 4
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TOTAL (add across) |
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Revenue |
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Sony Contract |
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Boeing Contract |
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Ratheon Contract |
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Other Income |
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PROJECTED TOTAL INCOME |
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Costs and Expenses |
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Salaries |
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Benefits |
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Rent |
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Insurance |
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Depreciation |
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Overhead |
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Supplies |
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Raw Materials |
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PROJECTED TOTAL EXPENSES |
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PROJECTED NET PROFIT/(LOSS) |
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Rubric
MGT302.W2A1.08.2022
Description:
Total Possible Score: 10.00
Accurately Prepares a Budget
Total: 2.00
Distinguished – Prepares a thorough 12 month budget for Xample Manufacturing, including the projected net profit or loss and a two to three page summary.
Proficient – Prepares a 12 month budget for Xample Manufacturing, including the projected net profit or loss and a two to three page summary. Minor details are missing.
Basic – Prepares a partial 12 month budget for Xample Manufacturing, including the projected net profit or loss and summary pages. Relevant details are missing.
Below Expectations – Attempts to prepare a 12 month budget for Xample Manufacturing and include the additional required elements; however, significant details are missing.
Non-Performance – The 12 month budget for Xample Manufacturing is either nonexistent or lacks the components described in the assignment instructions.
Explains the Process for Creating an Operating Budget and Its Importance
Total: 2.00
Distinguished – Thoroughly explains the process for creating an operating budget and its importance.
Proficient – Explains the process for creating an operating budget and its importance. Minor details are missing.
Basic – Partially explains the process for creating an operating budget and its importance. Relevant details are missing.
Below Expectations – Attempts to explain the process for creating an operating budget and its importance; however, significant details are missing.
Non-Performance – The explanation of the process for creating an operating budget and its importance is either nonexistent or lacks the components described in the assignment instructions.
Describes How Revenues and Expenses Are Grouped for Planning and Control in the Financial Statements
Total: 2.00
Distinguished – Comprehensively describes how revenues and expenses are grouped for planning and control in the financial statements.
Proficient – Describes how revenues and expenses are grouped for planning and control in the financial statements. Minor details are missing.
Basic – Partially describes how revenues and expenses are grouped for planning and control in the financial statements. Relevant details are missing.
Below Expectations – Attempts to describe how revenues and expenses are grouped for planning and control in the financial statements; however, significant details are missing.
Non-Performance – The description of how revenues and expenses are grouped for planning and control in the financial statements is either nonexistent or lacks the components described in the assignment instructions.
Written Communication: Control of Syntax and Mechanics
Total: 1.00
Distinguished - Displays meticulous comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains no errors and is very easy to understand.
Proficient - Displays comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains only a few minor errors and is mostly easy to understand.
Basic - Displays basic comprehension of syntax and mechanics, such as spelling and grammar. Written work contains a few errors which may slightly distract the reader.
Below Expectations - Fails to display basic comprehension of syntax or mechanics, such as spelling and grammar. Written work contains major errors which distract the reader.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: APA Formatting
Total: 1.00
Distinguished - Accurately uses APA formatting consistently throughout the paper, title page, and reference page.
Proficient - Exhibits APA formatting throughout the paper. However, layout contains a few minor errors.
Basic – Exhibits limited knowledge of APA formatting throughout the paper. However, layout does not meet all APA requirements.
Below Expectations - Fails to exhibit basic knowledge of APA formatting. There are frequent errors, making the layout difficult to distinguish as APA.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Page Requirement
Total: 1.00
Distinguished - The length of the paper is equivalent to the required number of correctly formatted pages.
Proficient - The length of the paper is nearly equivalent to the required number of correctly formatted pages.
Basic - The length of the paper is equivalent to at least three quarters of the required number of correctly formatted pages.
Below Expectations - The length of the paper is equivalent to at least one half of the required number of correctly formatted pages.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Resource Requirement
Total: 1.00
Distinguished - Uses more than the required number of scholarly sources, providing compelling evidence to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.
Proficient - Uses the required number of scholarly sources to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.
Basic - Uses less than the required number of sources to support ideas. Some sources may not be scholarly. Most sources on the reference page are used within the body of the assignment. Citations may not be formatted correctly.
Below Expectations - Uses an inadequate number of sources that provide little or no support for ideas. Sources used may not be scholarly. Most sources on the reference page are not used within the body of the assignment. Citations are not formatted correctly.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.