Budgeting and Forcasting-Business Proposal wk 1-wk7

I need a complete budget proposal done for the project. This project is ideal for anyone who has taken up business. This project needs to be complete in it’s entirity!!! I need high quality work and 100% accuracy!!! Please do not attempt to complete hand shake if you have no idea what you are doing…This assignment is of high importance!!!! Can fail me if done incorrectly!!! Please take very seriously!!! If you have a rating below 4 stars please by pass this assignment bc I will not use you!!!

Your Company Name

Budget Proposal

For

[Enter Years Here]

BUSN-278

[Term]

Professor[name]

DeVry University

Table of Contents

Title

Sales Forecast

Section		Title	Subsection	Page Number
1.0	Executive summary
2.0		Sales Forecast
2.1
2.2	Methods and Assumptions
3.0	Capital Expenditure Budget
4.0	Investment Analysis
4.1	Cash flows
4.2	NPV Analysis
4.3	Rate of Return Calculations
4.4	Payback Period Calculations
5.0	Pro Forma Financial Statements
5.1	Pro Forma Income Statement
5.2	Pro-Forma Cash flow Statement
5.3	Pro-Forma Balance Sheets
6.0	Works Cited
7.0	Appendices
7.1	Appendix 1: [description]
7.2	Appendix 2: [description] etc

[Please put page numbers in the last column of the table of contents above, as they apply to your finished assignment. Do this after your project is complete. Also, remove this text and all text that is in italics in this template when finished your project.]

[Also, please submit your Excel Spreadsheet which shows your supporting calculations]

(
1.0 Executive Summary
)

The first paragraph of this executive summary should give a brief description of the business to which this budget applies. Very briefly describe the products and services of this company, the geographical or demographics of the customers it serves, and why people purchase the main product of this business. Much or all of this will be found in the Business Profile provided to you. Please use your own words, and please do not simply copy and paste the explanation in the course materials. Make assumptions if necessary.

Also, provide a second paragraph which describes how the budget supports the company’s strategy.

Finally, provide a third paragraph where you summarize the key points from your budget, including the planning horizon, the amount of up-front investment, the NPV, Payback and IRR of the project, as well as key figures from your income statement, cash flow statement, and balance sheet.

Remember, this is not a thesis or introduction of what you will talk about – it contains the major, specific content of each section. The second and third paragraph should be written after you have completed all other sections of this template.

As you complete sections of this template, please remove all italicized text in all sections of this template and replace it with your own or you will lose points!

(
2.0 Sales Forecast
)

Briefly introduce the sales forecast section.

2.1 Sales Forecast

Here you should include a simple table showing the years and the total sales for each year, along with a brief explanation of why sales are expected to rise, fall, change, or stay the same in certain years. Provide a brief explanation of the sales forecast, indicating why you expect sales to rise or fall during the planning horizon. Your explanation should be consistent with the trends and changes in sales found in your table:

Year 1

Year 2

Year 3

Year 4

Year 5

Sales

2.2 Methods and Assumptions

Here you should describe how you arrived at your sales forecast in section 2.1. You should also provide any detailed calculations that led you to the sales forecast values. You should also summarize any research or figures that led you to make this sales forecast.

(
3.0 Capital Expenditure Budget
)

Here you should provide a screenshot of your capital expenditure budget, also listing the sources of data and assumptions that led to each line item in table format. Briefly describe the total investment and, if necessary, why major items are necessary to achieve the company’s strategy.

(
4.0 Investment Analysis
)

Briefly describe the NVP, IRR, accounting rate of return, and payback period for this analysis. Indicate the discount rate you used, and how you arrived at it.

4.1 Cashflows

Provide an excel spreadsheet screenshot that shows how you arrive at the net cash flows for each period in your planning horizon and describe its highlights.

4.2 NPV Analysis

Provide a screen shot of your Excel NPV Analysis here, and describe its highlights.

4.3 Rate of Return

Provide a screen shot of your IRR and Accounting Rate of Return calculations here, and explain the highlights.

4.4 Payback Period

Provide a screen shot of your Excel calculation of the payback period for this venture.

(
5.0 Pro-Forma Financial Statements
)

Briefly introduce this section here.

5.1 Pro-Forma Income Statement

Describe key figures and assumptions from the income statement, such as important profit or sales figures and their causes. Also, provide a screen shot of your pro-forma income statement.

5.2 Pro-Forma Cash Flow Statement

Provide a screen shot of the cash flow statement and describe the impact of the budget on cash balances.

5.3 Pro-Forma Balance Sheets
Provide a screen shot of your balance sheets, and describe key figures they contain.

(
6
.0
Works Cited
)

List any sources you cited in the body of your report.

(
7.0
Appendi
ces
)

NOTE: Start this section at the top of a new page.

This section of the budget proposal is where you’ll attach all of the supporting materials that you’ve referenced in the preparation of your plan, and that is too detailed or extensive to be included in the body of the report. Use this page to separate the appendices from the text in the body of your report. Make certain that you update the table of contents to include the title of each exhibit in the appendix and its page number.

7.1 Appendix 1: [put a description here]
7.2 Appendix 1: [put a description here]
7.3 Appendix 1: [put a description here]

DeVryUniversity

Course Project Description

BUSN

78 Budgeting and Forecasting

BUSN278 Course Project.

Project Overview:

This is an individual project where you will be acting as a consultant to an entrepreneur who wants to start a new business.

As the consultant, you’ll create a

year budget that supports the entrepreneur’s vision and strategy, as well as the needs for equipment, labor, and other startup costs.

You can choose from one of three types of new business startups — a landscaping company, a restaurant, or an electronics store that sells portable computing devices. Each business has its own Business Profile detailed in the sections below. The purpose of the Business Profile is to guide you in understanding the scope of the business, the entrepreneur’s startup costs, and financial assumptions.

The project requires you to create a written budget proposal, a supporting Excel Workbook showing your calculations, and a PowerPoint presentation summarizing the key elements of the budget proposal, which you assume will be presented to a management team.

This is an individual project. Each week you will complete a section of the project in draft form. In Week 7, you will submit the final version of the project’s Budget Proposal, Budget Workbook, and Budget Presentation in PowerPoint.

Deliverables Schedule / Points

Week	Deliverable	Points
1	Section 1.0 Executive Summary (Draft)			10
2	Section 2.0 Sales Forecast (Draft)
3	Section 3.0 Capital Expenditure Budget (Draft)
4	Section 4.0 Investment Analysis (Draft)
5	Section 5.1 Pro Forma Income Statement (Draft)
6	Section 5.2 Pro Forma Cash Flow Statements (Draft)
	7	Final Budget Proposal	90
Final Presentation w/ PowerPoint	30
Total project points	180

Business Profile:
Papa Geo’s
– Restaurant

Vision

The vision of the entrepreneur is to create a single-location, sit-down Italian restaurant called Papa Geo’s. The goal is to generate an income of $40,000 per year, starting sometime in the second year of operation, as wells as profit that is at least 2% of sales.

Strategy

a) Market Focus/Analysis

The restaurant targets middle to lower-middle class families with children, as well as adults and seniors, located in Orlando, Florida. The area within 15 minutes of the store has 10,000 families, mostly from lower to middle class neighborhoods. Average family size is 4 people per household. There is no direct competition; however, there are fast food restaurants like McDonald’s, Taco Bell and Wendy’s in the geographical target market. The lower to middle class population is growing at about 6% per year over the next five years in this area.

b) Product

The product is Italian food served buffet style, in an all-you-can-eat format, with a salad bar, pizza, several different types of pasta with three or four types of sauces, soup, desserts, and a self-serve soda bar. The restaurant is also to have a 500 square foot gaming area which has game machines that children would be interested in using.

c) Basis of Competition

Customers come to this restaurant because of the good Italian food at a low price – you can get a meal for $7, including drinks. Customers also eat at Papa Geo’s due to the cleanliness of the facility, the speed of getting their seat and food, and the vending machines which keep the children busy while adults enjoy their meal.

Startup Requirements*

Given Costs

· The cost of registering a limited liability company in Florida – filing fees listed at the bottom of the application for located at:

http://form.sunbiz.org/pdf/cr2e047

· Renovation of the facility expected to cost $15,000

· Business insurance, estimated at $1,000 per year

· Health and other benefits are 20% of the salaries of the manager and assistant manager

Costs you should estimate through research, experience or other methods

· Soda fountain bar

· 2 pizza ovens

· Salad and pizza/dessert bar

· Approximately 100 square foot commercial refrigerator

· 2 cash registers

· 6 video game vending machines

· Management office with desk and lower-priced laptop computer

· Staff lunchroom equipment such as microwave, sink, cupboards and refrigerator

· 20 four-seater tables with chairs

· Busing cart for transporting dirty dishes from the dining area to the dishwashing area

· 140 sets of dishes, including cutlery and drinking cups

· Commercial dishwasher

· Miscellaneous cooking and food handling equipment like trays, lifters, spoons, pots etcetera

· The cost of an average of 7 employees on the payroll.

· All operating costs, such as advertising, rent for a 3,500 square foot facility with male and female washrooms (already installed), utilities, maintenance, and annual depreciation

*If you have questions about startup requirements, or think other startup costs necessary for the business are missing, then make an assumption and state it in the relevant section of the report.

Given Financial Assumptions*

· The owner will be granted a loan for the initial startup, repayable over 10 years at current interest rates for small business loans.

· The owner will use personal funds to operate the business until it generates enough cash flow to fund itself.

· Essentially, all sales are made by credit card. All credit card sales are paid to the restaurant daily by the credit card company.

· 2.5% of sales is paid to the credit card company in fees.

· Food suppliers give 30 days of trade credit.

· Inventories are expected to be approximately 10% of the following month’s sales.

· The average meal costs $4.00 in materials and labor.

· The average family spends $4.00 on vending machine tokens.

· Equipment is depreciated on a straight-line basis over 5 years.

· Managers have health benefits, other workers do not.

The company will operate from 10:00 am to 9:00 pm, 7 days a week.

· The entrepreneur will manage the store and draw a salary.

· Every shift has one person on the cash register, one keeping the food bars stocked with food, two cooking the food, one on busing and table cleaning, a manager, and assistant manager.

*If you believe any other assumptions are necessary, please state them in your budget proposal.

Business Profile: The Cutting Edge – Landscaping

Vision

The vision of the entrepreneur is to create a 5-team landscaping business that caters to upscale neighborhoods in Miami, Florida. The company is to be called “The Cutting Edge”. The goal of the entrepreneur is to generate income of at least $42,000 per year as his personal salary, as well as profits of 4% after tax sometime no later than the second year of operation. The entrepreneur intends to buy a route of 100 homes from a lawn service company whose owner is retiring.

Strategy

a) Market Focus/Analysis

The landscaping business targets upscale neighborhoods with home associations which demand lawns to be manicured and well-cared for. Customers tend to be upper middle, to upper-class individuals with household income levels of $110,000 or more. The geographic focus is Miami and its surrounding area. The area is expected to show slow economic growth of about 1% per year over the next five years.

b) Product

The product is lawn maintenance and landscaping services as well as minor irrigation equipment repair. The primary source of income is expected to be in the form of lawn-cutting, debris-blowing, and edge trimming services. However, the company will also do reseeding, landscaping and foliage/tree planting, tree trimming, and light irrigation system repair when necessary to keep their customer’s lawns watered and healthy.

c) Basis of Competition

Customers hire the Cutting Edge due to its reliability in showing up when they are supposed to, quality lawn service, as well as their ability to keep lawn sprinkler systems in good repair, sparing the homeowner of the inconvenience of calling a sprinkler repair for minor repairs such as broken or clogged sprinkler heads, or other minor sprinkler system repairs.

Startup Requirements*

Given Costs
· The cost of registering a limited liability company in Florida – filing fees listed at the bottom of the application for located at: http://form.sunbiz.org/pdf/cr2e047
· Business insurance, estimated at $1,000 per year

· No health benefits except for the owner of the business

· Workman’s compensation fees

· The cost of the initial route of 100 homes, at a cost of $120,000

Costs you should estimate through research, experience or other methods

· Team equipment for lawn cutting, which includes equipment for a two-person team:

· A pickup truck

· A trailer

· A large riding lawnmower

· A smaller riding lawnmower

· A push lawnmower

· Two gas-powered lawn trimmers

· Two gas-powered lawn edgers

· Safety equipment for eye and ear protection

· Tools for minor equipment repair on the job

· A drink cooler

· 2 gas powered blowers

· 2 tree/hedge trimmers

· 2 long ladders

· Buck saws for cutting branches

· The cost of 10 workers, two per team

· All operating costs such as advertising, phone, a small 400 square foot office complete with utilities, internet, laptop computer, accounting software like QuickBooks, office supplies, and annual depreciation on equipment.

*If you have questions about startup requirements, or think other startup costs necessary for the business are missing, then make an assumption and state it in the relevant section of the report. This list is not necessarily complete.

Given Financial Assumptions*
· The owner will be granted a loan for the initial startup, repayable over 10 years at current interest rates for small business loans.
· The owner will use personal funds to operate the business until it generates enough cash flow to fund itself.

· Essentially, 60% sales are made by credit card and 40% are made by check. All credit card sales are a paid to the company daily by the credit card company.

· 2.5% of credit card sales is paid to the credit card company in fees.

· The average lawn service costs $150 per month. Irrigation repairs are minimal at an average of $50 per customer per year, landscaping and other services are about $200 per customer per year.

· Equipment is depreciated on a straight-line basis over 5 years.

· The owner has health benefits, other workers do not.

· Each lawn takes about 1.5 hours to cut and manicure, as well as any other repairs or extra services like tree or shrub trimming.

· The entrepreneur will manage the company and draw a salary, but will not service lawns or perform other services.

*If you believe any other assumptions are necessary, please state them in your budget proposal.

Business Profile: Wireless World

– Wireless Device Retail Store

Vision

The vision of the entrepreneur is to create a single-location retail operation that sells portable wireless devices called Wireless World. The company sells phones, wireless eBook readers, high-end notebook and netbook computers, iPads, and other wireless computing devices.

Strategy

a) Market Focus/Analysis

This store targets tech-savvy individuals who are mostly students from wealthy families or working adults between the ages of 22 and 49 years of age. These individuals either purchase the products because they love wireless gadgets, think the gadgets will improve their productivity, or think the wireless gadgets are fashionable and consistent with their lifestyle. The store is located in a high-end shopping center called Millenia Mall alongside Neiman Marcus, Macy’s and other high-end stores.

b) Product

Products are cutting edge wireless devices from brand name companies, as well as specialty companies that have unique products that are not readily available at other stores.

c) Basis of Competition

Customers shop at the store for the high-end shopping experience, knowledgeable staff, superior customer service and return policies, the broad selection of well-known, brand-name products, as well as lesser known companies with highly unique and innovative wireless devices. They also shop at the store because it is stocked with cutting edge products that are new to the market.

Startup Requirements*

Given Costs
· The cost of registering a limited liability company in Florida – filing fees listed at the bottom of the application for located at: http://form.sunbiz.org/pdf/cr2e047

· Renovation of the facility expected to cost $25,000

· Business insurance, estimated at $1,000 per year
· Health and other benefits are 20% of the salaries of the manager and assistant manager

· Initial investment in inventory is $20,000

Costs you should estimate through research, experience or other methods
· The cost of an average of 7 employees on the payroll.

· All operating costs, such as advertising, rent for a 3,500 square foot facility with male and female washrooms (already installed), utilities, maintenance, and annual depreciation.

*If you have questions about startup requirements, or think other startup costs necessary for the business are missing, then make an assumption and state it in the relevant section of the report.

· Essentially, all sales are made by credit card. All credit card sales are paid to the store daily by the credit card company.

· 2.5% of sales is paid to the credit card company in fees.

· Merchandise suppliers give 30 days of trade credit.

· Inventories are expected to be approximately 10% of the following month’s sales.

· Managers have health benefits, other workers do not.

· The company will operate from 10:00 am to 9:00 pm, 6 days a week.

· The entrepreneur will manage the store and draw a salary.

*If you believe any other assumptions are necessary, please state them in your budget proposal.

All rights reserved. No part of this work may be reproduced or used in any form or by any means – graphic, electronic, or mechanical, including photocopying, recording, Web distribution or information storage and retrieval systems – without the prior consent of DeVry Educational Development Corporation.

Page 1 of 9 BUSN278 Course Project Description x

Instructions

BUSN-278 Budgeting and Forecasting Template Instructions

Use this spreadsheet structure to lay out the various sections of your project.

The purpose of this spreadsheet is to make it easy for your professor to locate the

various sections of your project. Please don’t alter the Worksheet Tabs or titles.

After you finish your calculations in this spreadsheet, you will have to

create a written report where you take screenshots from this spreadsheet

and put them in the Budget Proposal Template, along with necessary

explanations. Detailed instructions for how to write the report

are found in the Budget Proposal Template, a word document.

2.1 & 2.2 Sales Forecast

Put your sales forecasting calculations here.

3.0 Capital Expenditure Budget

4.1 Cashflows

Put your detailed cash inflows and cash outflows here, also showing net cash flow.

4.2 NPV Analysis

Create an NPV Analysis here.

4.3 Rate of Return Calculations

Show your rate of return calculations in this worksheet.

4.4 Payback Period Calculations

Show your payback period calculations here.

5.0 Pro Forma Financials

Put your Pro-Forma Income Statement, Balance sheet and statement of cash flows here, along with any other supporting calculations or schedules.

Course_Project_Budget_Proposal_Template x
Your Company Name

Your Company Name

Budget Proposal

For

[Enter Years Here]

BUSN-278

[Term]

Professor[name]

DeVry University

Table of Contents

Section

Title

Subsection

Title

Page Number

1.0

Executive summary

2.0

Sales Forecast

2.1

Sales Forecast

2.2

Methods and Assumptions

3.0

Capital Expenditure Budget

4.0

Investment Analysis

4.1

Cash flows

4.2

NPV Analysis

4.3

Rate of Return Calculations

4.4

Payback Period Calculations

5.0

Pro Forma Financial Statements

5.1

Pro Forma Income Statement

5.2

Pro-Forma Cash flow Statement

5.3

Pro-Forma Balance Sheets

6.0

Works Cited

7.0

Appendices

7.1

Appendix 1: [description]

7.2

Appendix 2:
[description] etc

[Also, please submit your Excel Spreadsheet which shows your supporting calculations]

(
1.0 Executive Summary
)

The first paragraph of this executive summary should give a brief description of the business to which this budget applies.
Very briefly describe the products and services of this company, the geographical or demographics of the customers it serves, and why people purchase the main product of this business. Much or all of this will be found in the Business Profile provided to you. Please use your own words, and please do not simply copy and paste the explanation in the course materials. Make assumptions if necessary.

Also, provide a second paragraph which describes how the budget supports the company’s strategy.

As you complete sections of this template, please remove all italicized text in all sections of this template and replace it with your own or you will lose points!

(
2.0 Sales Forecast
)

Briefly introduce the sales forecast section.

2.1 Sales Forecast

Year 1

Year 2

Year 3

Year 4

Year 5

Sales

2.2 Methods and Assumptions

(
3.0 Capital Expenditure Budget
)

(
4.0 Investment Analysis
)

Briefly describe the NVP, IRR, accounting rate of return, and payback period for this analysis. Indicate the discount rate you used, and how you arrived at it.

4.1 Cashflows

Provide an excel spreadsheet screenshot that shows how you arrive at the net cash flows for each period in your planning horizon and describe its highlights.

4.2 NPV Analysis

Provide a screen shot of your Excel NPV Analysis here, and describe its highlights.

4.3 Rate of Return

Provide a screen shot of your IRR and Accounting Rate of Return calculations here, and explain the highlights.

4.4 Payback Period

Provide a screen shot of your Excel calculation of the payback period for this venture.

(
5.0 Pro-Forma Financial Statements
)

Briefly introduce this section here.

5.1 Pro-Forma Income Statement

Describe key figures and assumptions from the income statement, such as important profit or sales figures and their causes. Also, provide a screen shot of your pro-forma income statement.

5.2 Pro-Forma Cash Flow Statement

Provide a screen shot of the cash flow statement and describe the impact of the budget on cash balances.

5.3 Pro-Forma Balance Sheets
Provide a screen shot of your balance sheets, and describe key figures they contain.

(
6
.0
Works Cited
)

List any sources you cited in the body of your report.

(
7.0
Appendi
ces
)

NOTE: Start this section at the top of a new page.

7.1 Appendix 1: [put a description here]

7.2 Appendix 1: [put a description here]

7.3 Appendix 1: [put a description here]

Project Activity Week 1 x

DeVry University

Course Project

BUSN278 Budgeting and Forecasting

Student Project Activity – Week 1

A.
Week 1: Section 1.0 Executive Summary

B.
TCOs Addressed:

TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget.

Project Activity Overview – Scenario / Summary:

You have been asked to create a budget proposal for one of these businesses: Papa Geo’s Restaurant, The Cutting Edge Landscaping, or Wireless World Electronics Retail Store. This week you will begin working on the proposal by drafting the Executive Summary.

Use the Budget Proposal Template x.

D.
Deliverables:

Save the first paragraph of Section 1.0 Executive Summary Draft as
YourName_Project_WK1 x and upload to the
Week 1 Project Dropbox.

E.
Project Tasks:

Task 1:

Download the Budget Proposal Template x from DocSharing.

Task 2:

Download the Course Project Description x. from DocSharing.

Task 3:

Review the three different business scenarios.

Task 4:

Select the business for which you will create a budget proposal.

Task 5:

Draft the first paragraph of the Section 1.0 Executive Summary.

Task 6:

Save the Draft and submit to the dropbox.

F.
Grading Criteria

Description

Suggested Points

The business is briefly described in one paragraph.

The business description is in your own words.

The business description appears in the Executive Summary section of the Budget Proposal Template.

The business description is one of the three businesses described in the business profiles.

Total Points

10 points

END OF WEEK 1

Page 1 of 2

BUSN278_Project_Activity_ Week_1

DeVryUniversity

Course Project

BUSN278 Budgeting and Forecasting

Student Project Activity – Week 2

A. Week 2: Budget Proposal Section 2.0 Sales Forecast

B. TCOs Addressed:

TCO 5: Given a new business startup or new product introduction and the need to make a forecast when historical data is not available, create the forecast for the organization.
TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget.

Project Activity Overview – Scenario / Summary:

Last week, you selected a business for which you’ll make a budget proposal. Your first step is to create a sales forecast (in sales dollars) when no historical data is available. Use methods such as historical analogy, expert judgment, consumer surveys, the Delphi method, or calculations based on population distributions, estimated growth rates, or expected market penetration rates to arrive at reasonable sales figures for your business for the next 5 years.

Use the Budget Proposal Workbook.xlsx and Budget Proposal Template x.

D. Deliverables:

Complete Section 2.0 (including sections 2.1 and 2.2) in the Budget Proposal Template x after doing research and performing calculations to arrive at your 5 year forecast. Also, provide calculations in the Budget Proposal Workbook.xlsx.

Add section 2.0 to your Budget Proposal Template and save it as YourName_Project_WK2 x. Save your sales forecast in the worksheet tab labeled Section 2.1 and 2.2 as YourName_Worksheet_WK2.xlsx and upload both files to the Week 2 Project Dropbox.

E.
Project Tasks:

Task 1:

Download Budget Proposal Workbook.xlsx from DocSharing.

Task 2:

Research the area in which your business is located, and do calculations in the Excel workbook which produce a reasonable dollar value forecast based on population size, growth rates, an estimate of the percent of the population expected to purchase your product, and the dollar value of the average sale over the 5 year planning horizon. Do these calculations in the Section 2.1 and 2.2 tab of the Budget Proposal Workbook.xlsx. Also, feel free to use other methods described in this course you feel are appropriate to estimate sales for your new business startup’s first five years.

Task 3:

Write section 2.1 and 2.2 of the Budget Proposal Template x document, summarizing your forecast in a table, and also describing and justifying your methodology for arriving at the sales forecast. Follow the instructions in section 2.0 of the Budget Proposal Template x when writing these sections. Also, update your works cited Section 6.0 in the template with any research you did.

Task 4:

Paste the first paragraph of the 1.0 Executive Summary template into the Budget Proposal Template x so your professor is reminded which business you’re doing.

Task 5:

Save the draft of the Budget Proposal Word document and Budget Proposal Excel calculation and submit it to the Week 2 Project Dropbox.

F. Grading Criteria

Description

Suggested Points

There is a 5 year sales forecast in the Word document Section 2.1 and the Excel spreadsheet (in sales dollars).

The 5-year forecast appears to be based on research, reasonable assumptions, and methodologies described in the course based on the description in section 2.2 of the template.

The 5-year forecast calculations appear to be correct.

Total Points

10 points

END OF WEEK 2

Page 1 of 3

BUSN278_Project_Activity_ Week_2

DeVry University

Course Project

BUSN278 Budgeting and Forecasting

Student Project Activity – Week 3

A. Week 3: Section 3.0 Capital Expenditure Budget

B. TCOs Addressed:

TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget.

Project Activity Overview – Scenario / Summary:

Use the Budget Proposal Workbook.xlsx and Budget Proposal Template x to develop and present a Capital Expenditure Budget for your new business startup.

D. Deliverables:

Complete Section 3.0: Capital Expenditure Budget in the Budget Proposal Template x after doing research about expected capital expenditures. Also, provide calculations in MS Excel template tab 3.0 in the Budget Proposal Workbook.xlsx.

Add section 3.0 to the Budget Proposal Template and save it as YourName_Project_WK3 x. Add your Capital Expenditure Budget to the worksheet tab labeled Section 3.0 and save as YourName_Worksheet_WK3.xlsx and upload both files to the Week 3 Project Dropbox.

E. Project Tasks:

Task 1:

Identify items considered capital expenditures for the new business startup.

Task 2:

Do research to estimate costs of these capital expenditure items.

Task 3:

Create a capital expenditure budget in the Excel Template Tab labeled Section 3.0 Capital Expenditure Budget.

Task 4:

Add Section 3.0 of the Budget Proposal Template word document. Make sure the first paragraph of your Executive Summary Section 1.0 and Sales Forecast Section 2.0 are also in the Budget Proposal Template. Also, update your Section 6.0 Works Cited as necessary.

Task 5:

Save the Excel and Word documents, and submit them to the Week 3 Project Dropbox.

F. Grading Criteria

Description

Suggested Points

Capital Expenditure Items have been correctly identified.

Costs of these items appear reasonable and based on primary research.

The Capital Expenditure budget is properly constructed in the Excel Template and calculations appear correct.

The Capital Expenditure section of the Word template is complete and correctly describes the capital expenditure budget and its underlying assumptions.

Total Points

10 points

END OF WEEK 3

Page 1 of 2

BUSN278_Project_Activity_ Week_3

DeVry University

Course Project

BUSN278 Budgeting and Forecasting

Student Project Activity – Week 4

A. Week 4: Section 4.0 Investment Analysis

B. TCOs Addressed:

TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget.

Project Activity Overview – Scenario / Summary:

Use the Budget Proposal Workbook.xlsx and Budget Proposal Template x to develop and present an Investment Analysis for your new business startup.

D. Deliverables:

Complete Section 4.0: Investment Analysis. Also, provide calculations in MS Excel template tab 4.0 in the Budget Proposal Workbook.xlsx.

Add section 4.0 to the Budget Proposal Template x and save it as YourName_Project_WK4 x. Also add Section 4.0 to your Budget Proposal Workbook.xls and save it as YourName_Worksheet_WK4.xlsx and upload both files to the Week 4 Project Dropbox.

E. Project Tasks:

Task 1:

Complete Section 4.0 of the Budget Proposal Workbook.xls and the Budget Proposal Template x.

Task 2:

Save the Excel and Word documents, and submit them to the Week 4 Project Dropbox.

F. Grading Criteria

Description

Suggested Points

The cash flows show detailed inflows and outflows, as well as net cash flows.

The NPV Analysis is properly calculated and presented.

The Rate of Return calculations are properly calculated and presented.

The payback period is properly calculated and presented.

Total Points

10 points

End of Week 4

Page 1 of 2

BUSN278_Project_Activity_ Week_4

DeVry University

Course Project

BUSN278 Budgeting and Forecasting

Student Project Activity – Week 5

A. Week 5: Section 5.1: Pro Forma Income Statement

B. TCOs Addressed:

TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget

Project Activity Overview – Scenario / Summary:

Use the Budget Proposal Workbook.xlsx and Budget Proposal Template x to develop pro-forma income statements for the new business.

D. Deliverables:

Complete Section 5.1: Pro-Forma Income Statements. Also, provide calculations in MS Excel template tab 5.0 in Budget Proposal Workbook.xlsx

Add section 5.1 to the Budget Proposal Template x and save it as YourName_Project_WK5 x. Also add Section 5.1 to your Budget Proposal workbook.xls and save it as YourName_Worksheet_WK5.xlsx and upload both files to the Week 5 Project Dropbox.

E. Project Tasks:

Task 1:

Add Section 5.1 of the Budget Proposal Workbook.xls and the Budget Proposal Template x.

Task 2:

Save the Excel and Word documents, and submit them to the Week 5 Project Dropbox.

F. Grading Criteria

Description

Suggested Points

The Pro-forma income statement is properly constructed in contribution format.

Other necessary supporting budgets are also present and all calculations are correct.

The sources of figures in the pro-forma income statement and assumptions are identified.

Total Points

10 points

End of Week 4

Page 1 of 2

BUSN278_Project_Activity_ Week_5

DeVry University

Course Project

BUSN278 Budgeting and Forecasting

Student Project Activity – Week 6

A. Week 6: Section 5.2: Pro Forma Cash Flow Statement

B. TCOs Addressed:

TCO 10: Given a description of a new business, new product, service or project develop, present and defend the budget

C. Project Activity Overview – Scenario / Summary:

Use the Budget Proposal Workbook.xlsx Budget Proposal Template x to develop pro-forma cash flow statements for the new business

D. Deliverables:

Complete Section 5.2: Pro-Forma Cash Flow Statements. Also, provide cash flow statements and other supporting budget calculations in MS Excel template tab 5.0 in Budget Proposal Workbook.xlsx

Add section 5.2 to the Budget Proposal Template x and save it as YourName_Project_WK6 x. Also add Section 5.2 to your Budget Proposal workbook.xls and save it as YourName_Worksheet_WK6.xlsx and upload both files to the Week 6 Project Dropbox.

E. Project Tasks:

Task 1:	Add Pro Forma Cash Flow statements to Section 5.0 of the Budget Proposal Workbook.xls and the Budget Proposal Template x.
Task 2:	Save the Excel and Word documents, and submit them to the Week 6 Project Dropbox.

F. Grading Criteria

Description

Suggested Points

The Pro-forma cash flow statement is properly constructed.

Other necessary supporting budgets are present and all calculations are correct.

The sources of figures in the pro-forma cash flow statements and assumptions are identified.

Total Points

10 points

End of Week 6

Page 1 of 2

BUSN278_Project_Activity_ Week_6

DeVry University

Course Project

BUSN278 Budgeting and Forecasting

Student Project Activity – Week 7

A. Week 7: Section

.3: Pro Forma Balance Sheet, Finalized Budget Proposal and Presentation

B. TCOs Addressed:

TCO

: Given a description of a new business, new product, service or project develop, present and defend the budget.

C. Project Activity Overview – Scenario / Summary:

Use the Budget Proposal Workbook.xlsx and Budget Proposal Template x to develop pro-forma balances sheets for the new business. Also create and defend the budget.

D. Deliverables:

Complete Section 5.3: Pro-Forma Balance Sheets. Also, provide pro forma balance sheets and other supporting budget calculations in MS Excel template tab 5.0 in Budget Proposal Workbook.xlsx. Also, put the finishing touches on your appendices and works cited sections and complete your executive summary. Update the table of contents with page numbers. Create a PowerPoint presentation complete with notes defending the presentation.

Add section 5.3, Works Cited Section 6.0, any content to Appendices Section 7.0, your

Executive Summary

, and updated Table of

Content

s (with page numbers) to the Budget Proposal Template x and save it as YourName_Project_WK7 x. Also add the pro forma balance sheets to Section 5.0 or the Budget Proposal workbook.xls and save it as YourName_Worksheet_WK7.xlsx and upload both files to the Week 7 Project Dropbox.

E. Project Tasks:

Task 1:	Add Pro Forma Balance Sheets to Section 5.0 of the Budget Proposal Workbook.xls and the Budget Proposal Template x Section 5.3.
Task 2:	Add any works cited, appendices or other details to your Budget Proposal Template x. Also complete your Executive Summary and Page Numbers in the Table of Contents.
Task 3	Save the Excel and Word documents, and submit them to the Week 7 Project Dropbox.
Task 4	Create and Save a Powerpoint Presentation presenting and defending the Budget Proposal, placing notes in the presentation indicating your assumptions and defense of the budget components.
Task 5	Submit the PowerPoint presentation to the Week 7 Presentation Dropbox.

F. Grading Criteria: Project Proposal

	Item		Description		Points
Content	All parts of the template are fully completed.			5
Executive Summary	Executive Summary presents the major details of the Budget Proposal and adequately describes the business.	10
Sales Forecast	Sales Forecast is based on sound methodology and is complete.					15
Capital Expenditure Budget	Capital Expenditure Budget is complete with capital expenditure items properly identified.
Investment Analysis	Investment Analysis is complete with NPV, Rates of Return, Payback Period and Net Cash Flow Calculations.
Pro-Forma Financial Statement Interaction	The Income Statement, Cash Flow Statement, and Balance Sheet are properly constructed and are internally consistent.
Assumptions and Primary Research	Assumptions and sources of financial estimates are understandable and reasonable for all financial statements.
	Total	90

G. Grading Criteria: Presentation

Item

Description

Points

Total

Spelling and Grammar	There are no spelling or grammatical errors.
Summarization	The key points from the budget proposal are presented at the right level of detail.	20
Professionalism	The layout of the slides, color schemes, and content are readable and highly professional.
30

End of Week 7

Page 1 of 3

BUSN278_Project_Activity_ Week_7

Regressio

Line

lculation of the

Regression Line

(

amounts in thousands

)

Advertising (

)

ales (

)

y2 9

5 1

25 19 20 380 361

11 14 15

196 14

16 22

196

256 23

5 529 625 12 20

240 144 400

12 20 240 144 400

22 23

506 484

529
7 14

98 49

196
13

286 169

484
15

18 270 225 324 17

289

324

SUMS (S)

174

225 3

414

792

4,359

Using the formulas

elow, we substitute from the table above and obtain an intercept (a) of

5836

and a slope (b) of .

5632

a + bx a= 10.5836431227 b= 0.563197026

5632
.

228

,
3

818

,
1

276

,
30

504

150

968

,
40
)
174
(
)
792
,
2

)(

12
(
)
225
)(
174
(
)
414
,
3
)(
12
(
)
(
x
n
y
x

–

xy
n
=
b
5836
.
10
228
,
3

164

)
276
,
30
(
)
504
,
33
(
)

036

594

(
)

200

628

(
)
174
(
)
792
,
2
)(
12
(
)
414
,
3
)(
174
(
)
225
)(
792
,
2
(
)
(
x
=
a
2
2
2
2
2
2
2
=
=
–
–
=
–
–
=
S
–
S
S
S
S
=
=
–
–
=
–
–
=
S
–
S
S
S
–
S
S
x
x
x
n
xy
x
y

Movi

ver

>Moving Average

Model

ormula for Moving Average:

Moving Average

Forecas

Month Date

Actual

ales

Day Moving Average Actual Numerical Deviatio

n =

Actual

–

Forecast

Absolute Deviation

D|A-F| 6

Day Moving Average

Absolute Deviation D|A-F|

Jan

4 3

46 51.

(

5.00

)

5.00

51.00

.00

7.00
6

49 52.33 (

3.33

)

3.33
7

51.00

3.00

3.00 51.00 3.00
8

53.67

52.33
SD|A-F|= 1.67 18.33

3.00
n=

4 4 1
MAD= 0.42 4.

3.00

eighted Moving Average

Weighted Moving Average

Model

Formula for weighted moving average:

Month Date

Actual Sales W1=

0.1

, W2=0.3, W3=0.6 D|A-F| W1=

0.2

5, W2=0.35, W3=0.40

D|A-F| W1=4

W2=5 W3=8 D|A-F|

0
Jan 1 46
2 54

3 53

4 46

2.60 6.60 51.60 5.60 51.65 5.65 5 58

48.90 9.10 50.45 7.55 49.94 8.06 6 49

53.90 4.90 52.55 3.55 53.29 4.29 7 54

51.40

2.60 51.40 2.60

50.94 3.06 8

52.90 5

3.25 53.47 SD|A-F| = 23.20 19.30 21.06 n =

4.00

4.00 4.00
MAD = 5.80 4.83 5.26

Exponential Smoothing

0.1 With a = 0.2 With a =

Month Date

D|A-F| D|A-F| D|A-F|

0
Jan 1 46

2 54

46.00 46.00

3 53

5.00

4 46

3.25

5 58

6 49

7 54

n = 5.00 5.00 5.00
MAD =

Exponential Smoothing Model
Formulas for Exponential Smoothing Model:
		With a =	0.25
Actual Sales (A)	Forecast for a=0.1	Forecast for a=0.2	Forecast for a=0.25
		46.00
46.80	6.20	47.60	5.40	48.00
47.42	1.42	48.68	2.68	49.25
47.28	10.72	48.14	9.86	48.44	9.56
48.35	0.65	50.12	1.12	50.83	1.83
48.42	5.58	49.89	4.11	50.37	3.63
48.97	50.71	51.28
SD\|A-F\| =	24.58	23.16	23.27
4.92	4.63	4.65

n
A
A
A
F
t
t
n
t
t

+
+
=
–
–
–
+
1

])

[

(
1

…

AAA

ttnt

1])1[(

1
…
(
)
(
)
(
)
(
)
(
)
(
)
W
A
W
A
W
A
W
F
t
t
t
t
t
S
+
+
=
–
–
3
1
2
2



AWAWAW

ttt







 3122

(
)
(
)
(
)
(
)
t
t
t
t
t
t
t
F
A
F
F
F
A
F
–
+
=
–
+
=
+
+
a
a
a
1
1
1

tttt
ttt

FAF

FAF
1
1

Regression
Statistics

196

12 20

400

12 20 240 144 400

22 23

529

7 14

196

13 22

484

324

(S)

225

.5836 and a slope (b) of .5632

											Calculation of Regression Statistics (amounts in thousands)
Advertising (x)	Sales (y)	xy	x2	y2
9			1		13	81	2	25
19			20	380	361			400
	11			14	154				12	196
16			22	256
	23	5	7		529	625
	240		144
506		484
98	49
286	169
	18	270		225		324
17	306	289
SU	MS	174	3,414	2,792	4,359
Using the formulas below, we substitute from the table above and obtain an intercept (a) of	10
y=	a + bx
a=		10.5836431227
b=		0.563197026

Regression Report

Regression Statistics

Regression 1

85.3243494424

Standard Error

10.5836431227

5.7271721382 15.4401141072

0.563197026

0.0027686531

0.2448112081 0.8815828439

SUMMARY OUTPUT
Multiple R	0.7799828575
R Square	0.6083732581
Adjusted R Square	0.5692105839
	Standard Error	2.3436222084
Observations
ANOVA
df	SS	F	Significance F
	85.3243494424	15.5345177665		0.0027686531
Residual	54.9256505576	5.4925650558
Total	140.25
Coefficients	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	2.1796087802	4.8557535732	0.0006656245		5.7271721382		15.4401141072
X Variable 1	0.142893168	3.9413852598		0.2448112081		0.8815828439

>Seasonalization

86957

-01 –

-02

6.88

Jan 1

245

244

250

4 260

260

265

6 260

260

1.00 255

8 245

245

.00

240

255

0.99 255

265

.02

1.03 265

Dec

1.04 270

Jan

250

0.96 250

Feb

250

0.96 250

Mar

258

0.98 258

Apr

1.01 267

May

1.03 273

Jun

1.05 278

Jul

260

0.98 260

Aug

256

0.96 256

Sep

255

.15

255

Oct

270

1.00 270

Nov

275

Dec 24

1.04 283

Jan 25

.20

265

Feb 26

0.97 265

Mar 27

0.99 272

Apr 28

1.03

May

.25

1.04

Jun

1.04 288

Jul

0.99 276

Aug

0.96 268

Sep

0.94 265

Oct

.31

1.00 281

Nov

1.02

Dec

1.04

														Forecast of sales, including seasonal adjustment.
y=	a + bx
a=		2	4	6	8	0	5	7	9	1
b=		1.01							26
Time x	Actual Sales (A)			Jan			Dec	Regression Forecast (F) y = a + bx	Seasonal Ratio (A)/(F)	Seasonal Forecast of Sales
Year	Month
24
Year 1				245	247.90				0.99
		Feb		244	248.91			0.98
		Mar	3							25	249.92		1.00
		Apr	250.93						1.04
		May							265	251.95		1.05
		Jun	252.96				1.03
		Jul						255	253.97
		Aug	254.98					0.96
		Sep		240			256		0.94
		Oct	10	257.01
		Nov	11			258
12					27	259.04
Year 2	13	260.05
14	261.06
15	262.07
16		267	263.09
17		273	264.10
18		278	265.11
19	266.12
20	267.14
21		268	0.95
22	269.16
23		275	270.17		1.02
		28	271.19
Year 3		272		0.97
273.21
274.22
275.24	282
29		276		288
30	277.26
31	278.27
32	279.29
33	280.30
34		281
35	282.33	289
36	283.34	296

Turn in your highest-quality paper
Get a qualified writer to help you with

“ Budgeting and Forcasting-Business Proposal wk 1-wk7 ”

Get high-quality paper

NEW! AI matching with writer

Are you stuck with your online class?

Get help from our team of writers!

Order Today

Budgeting and Forcasting-Business Proposal wk 1-wk7

2.1 Sales Forecast

2.2 Methods and Assumptions

4.3 Rate of Return

5.2 Pro-Forma Cash Flow Statement

5.3 Pro-Forma Balance Sheets Provide a screen shot of your balance sheets, and describe key figures they contain.

Instructions

2.1 & 2.2 Sales Forecast

3.0 Capital Expenditure Budget

4.1 Cashflows

4.2 NPV Analysis

4.3 Rate of Return Calculations

4.4 Payback Period Calculations

5.0 Pro Forma Financials

Regression Line

Weighted Moving Average

Exponential Smoothing

Regression Statistics

Regression Report

5.3 Pro-Forma Balance Sheets
Provide a screen shot of your balance sheets, and describe key figures they contain.

Regression
Statistics