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ScenarioIt has now been one month since you launched your business

ScenarioIt has now been one month since you launched your business

Scenario

It has now been one month since you launched your business. You are meeting with a few investors soon to share your vision for the company and to ask for more funding. You will be sharing your company’s financial health at this meeting. To do that, you need to determine and analyze your company’s performance over the last month using the data provided.

Prompt

Use the information in the Milestone Three Actual Costs and Revenue Data Appendix Word Document to evaluate your company’s performance, and complete the remaining tabs in the Project Workbook Spreadsheet that you used for the Milestone One and Two assignments.

Specifically, you must address the following rubric criteria:

  • Statement of Cost of Goods Sold: Prepare the statement of cost of goods sold in the “COGS” tab of the workbook. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
  • Income Statement: Use the given revenue data to prepare the “Income Statement” tab table and calculate the net income. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
  • Variance Analysis: Prepare the data in the “Variances” tab to determine whether the variances are favorable or unfavorable. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
    • Complete the data table for the variances by entering the budgeted (standard) and actual labor and material values. Remember to use the estimates for expected sales from your Milestone Two assignment.
    • Determine the variances for direct labor and direct materials in the “Variances” tab.
    • Evaluate the significance of the variances in the “Variances” tab, and mark them as favorable or unfavorable.

Guidelines for Submission

Submit the Project Workbook with all tabs completed. This file should be completed and submitted using Microsoft Excel.


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