Describe the four basic financial statements—income statement, statement of stockholders’ equity, statement of financial position (also known as a balance sheet), and statement of cash flows—and the purpose of each.
Compare the concepts of strategic planning, budgeting, and forecasting for an organization. Specifically:
Describe each concept and the ways they are interrelated as well as their differences.
Analyze the role that each concept plays within an organization. In your analysis, be sure to include how strategic planning, budgeting, and forecasting are used to improve organizational performance.
Be sure to include citations and references to support your work.
Explain what responsibility centers are (in general) as well as the three types of responsibility centers: cost centers, profit centers, and investment centers.
Identify the decision rights assigned to each type of center, being sure to include examples for each type of responsibility center.
Budget Preparation
For this part of your business report, you will prepare a budget in Excel and demonstrate how it was developed. You will use the organization’s year-end income statement and ideas the company has for the upcoming year. Be sure to address the following:
Using the Week 1 Part 2 Assignment Template and the data provided by your Instructor in the Doc Sharing area, prepare a budget of the upcoming year for the organization.
Illustrate to the organization how each line item in the budget was prepared. (Note: You will include these notes in the indicated cells within the Assignment Template.)
Note: In addition to submitting your work in Excel, you will insert your budget and your notes into your main document. For information on inserting data from Excel into Word, refer to the following:
Microsoft. (n.d.). Insert a chart from an Excel spreadsheet into Word.