Rjet Task 2-Financial Analysis

In: Business and Management

Submitted By dcrowe1
Words 2261
Pages 10
Introduction: JET2 Task 2 Summary Report for Budgetary Planning

Competition Bikes, Inc. will be reviewed for its various budgets and for its budgetary planning. Budgets are the main planning tool in all businesses that are used by managers to executive management to make decisions for the company. Cash flow is the bloodline of any organization’s operation including operating activities that determine how much cash stays in the organization called revenues and how much is paid out as an expense or liability.

Competition Bikes Inc. makes bicycles for professional riders who compete in road races such as triathlons and biathlons. The bikes have an extraordinary success rate and the product consistently finishes in the winners bracket approximately sixty percent of the time. However, due to the recent economic situation Competition Bikes, Inc. has experience a recent decline of approximately 15 percent in its bicycle sales which the trend expecting to continue for the next thirty six months. This review will provide an analysis and provide recommendation for improving budget planning for the company in a summary report Task:
Note: submit a copy of your Excel workbook when submitting your JET2 Task 2 work. .
A. Prepare a summary report in which you do the following:

1. Discussion of budgetary areas that raise concern in the budget planning.

One of the biggest issues when creating budgets is that there is no absolute way of knowing what next year is going to bring as far as revenues or market needs. Financial managers are expected to make estimations in the financial numbers that go into making the master budget. Revenue is usually determined by prior year data collected, looking at business trends, and calculating variances and ratios.

One of the first steps in developing a budget is estimating Revenues or Net Sales and this is…...

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