MBA-5130 Managing Business Finances – WEEK 3

//MBA-5130 Managing Business Finances – WEEK 3

MBA-5130 Managing Business Finances – WEEK 3

Week 3 – Assignment: Create a Quarterly Financial Plan and Budget for a Retail Warehouse Operation (10 Points)


Budgeting is a critical operational component of a manager’s duties. The implication of proper budgeting is that it allows companies to effectively plan for the management of resources within the context of product and goods delivery, while not losing sight of the need for cash flow. This concept will be reviewed again later in this course; in the meantime, cash flow is critically important to the health of a business. Being able to budget within the constraints of estimated and actual cash flow allows companies to spend no more than needed in operational functions for purchasing, producing, and delivering goods and services.


In this assignment, you will act as the warehouse manager for Tandy Leather Factory. You have been asked to present a quarterly budget and financial plan to the president of the company. To do this, you will need to examine last year’s financial statements, last quarter’s earnings, and this quarter’s estimated sales. You will use market analysis from Yahoo! Finance and the annual earnings report from last year. You will create a presentation of the budget using Microsoft PowerPoint. Your presentation should cover the cost of managing the inventory, shipping, warehouse machine maintenance (forklifts, pallet jacks, pallet wrapping machines, computers, handheld inventory devices, etc.), personnel costs for 75 employees, two office clerks, and two managers. Your budget will be based on an 8-hour work day, 5 days a week. You must include the cost for a 1-day shutdown of the warehouse for a quarterly inventory count.


Length: 10-15 slides

References: Please cite at least four sources. This may include three of the listed sources and at least one self-researched source.


Your presentation should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to Northcentral University’s Academic Integrity Policy.

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Learning Outcomes: 3, 5, 6

  • Assess the time value of money techniques within cash flow streams and budgeting problems.
  • Analyze the principles of managerial accounting and ethics in financial management.
  • Compile financial statements.


Section 2: Managerial Finance and Budgeting



Defining the term managerial finance can be a bit daunting because it can include so many interconnecting ideas and theories. For the purpose of this course, you will define it as the practice of managing data and resources for strategic and competitive advantage. Managing both data and resources includes the control of cash flow and the information related to cash flow as a resource used in your business. By managing both resources and data companies are able to create value and assure the greatest capacity for agility within the confines of limited financial resources.


Resources for a company may include historical data such as cash, sales history, purchasing history, accounting data, labor costs, waste costs, operating expenses, and forecasting data. These data, or informational resources, are constrained by the most powerful force in business cash flow. Cash flow is the amount of money transferring in and out of a business that affects a company’s liquidity. Liquidity, the term used for the flow of cash, is often used as a synonym for the term cash flow.


Cash flow in a company need not appear as physical dollars in a register, safe, or bank. Cash flow consists of cash working capital, accounts payable, accounts receivable, and expenses. The measurement of these elements is critical for financial management and budgeting. Budgeting is the act of planning, typically within functional areas of a company, a set allotment of funds for operation within the constraints of project company resources and cash flows. Companies that are able to successfully budget are able to control costs so the operational cost of conducting business, do not diminish earnings from sales.


Successful financial management is a planned and directed effort that focuses on ensuring functional budgets are adhered to, costs are controlled, sales are increased, and profit margins are maintained or improved. This comes from understanding the value of money now versus later, effectively using data, and managing cash flows

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By | 2019-04-23T21:57:05+00:00 April 23rd, 2019|Uncategorized|0 Comments

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