Budget Controls and Monitoring
Paper details:
Please read the scenario below, and then answer the questions that follow in a 3-page analysis. The questions will guide your analysis of the situation, but they need to be presented as part of a report to the owner of the company. Scenario: Dancin’ Donuts, established in January 2019, is a thriving new business specializing in low-carb donuts. The 2019 keto diet fad led to increased sales, and the chief financial officer (CFO) prepared a robust budget for 2020. In early March 2020, the small business had record-breaking sales but abruptly needed to shut its doors because of the global pandemic. The CFO conducted the following analysis for the month of March: Dancin’ Donuts March 2020 Budget Actuals $ Var % Total Revenue 200,000 196,947 -3,053 -2% Total Cost of Goods Sold 100,000 98,000 -2,000 -2% GROSS PROFIT 100,000 98,947 -1,053 -1% Total Expense 75,000 72,000 -3,000 -4% Total Interest Income 200 100 -100 -50% Total Other Expense 1,000 1,000 0 0% -800 -900 -100 13% Earnings Before Interest, Taxes, Depreciation, & Amortization (EBITDA) 24,200 26,047 1,847 8% Total Interest Expense 6,400 6,385 -15 0% Total Depreciation & Amortization 10,000 10,000 0 0% Earnings Before Taxes (EBT) 7,800 9,662 1,862 24% Total Income Taxes (30%) 2,340 2,899 559 24% Net Income 5,460 6,764 1,304 24% Please answer the following questions: What does AVB stand for? What is the total revenue for March 2020 when compared to the budget? What is the variance from the budget in the net income for the month? What is the income tax percentage for the month? Submitting your assignment in APA format means, at a minimum, you will need the following: Title page: Remember the running head. The title should be in all capitals. Length: 3 pages minimum Abstract: This is a summary of your paper, not an introduction. Begin writing in third person. Body: This begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 5 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged. Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referencagned item must have a corresponding in-body citation.
