Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC), Green Pastures Static Budget Income Statement
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Scenario: Green Pastures is a 400-acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has led to a decline in breeding activities, and it has made the boarding business extremely competitive. To meet the competition, Green Pastures planned in 2017 to entertain clients, advertise more extensively, and absorb expenses formerly paid by clients such as veterinary and blacksmith fees.
The budget report for 2017 is presented as an attachment. As shown, the static income statement budget for the year is based on an expected 21,900 boarding days at $25 per mare. The variable expenses per mare per day were budgeted: feed $5, veterinary fees $3, blacksmith fees $0.25, and supplies $0.55.  All other budgeted expenses were either semifixed or fixed.
During the year, management decided not to replace a worker who quit in March, but it did issue a new advertising brochure and did more entertaining of clients.
Develop a minimum 700-word examination of the financial statements and include the following:
Based on the static budget report:
What was the primary cause(s) of the loss in net income?
Did management do a good, average, or poor job of controlling expenses?
Were management’s decisions to stay competitive sound?

Prepare a flexible budget report for the year.
Based on the flexible budget report:
What was the primary cause(s) of the loss in net income?
Did management do a good, average, or poor job of controlling expenses?
Were management’s decisions to stay competitive sound?

What course of action do you recommend for the management of Green Pastures?
Show your work in Microsoft® Word or Excel®. 
Complete calculations/computations using Microsoft® Word or Excel®.    
Format the assignment consistent with APA guidelines.
 

 

 
Green Pastures
Static Budget Income Statement
For the Year Ended December 31, 2017
 
 
Actual              Master Budget             Difference
Number of Mares                                                         52                                60                     8 U
Number of Boarding Days                                    19,000                         21,900               2,900 U
Sales                                                               $380,000                     $547,500         $167,500 U
Less:  Variable Expenses
Feed                                                    104,390                       109,500               5,110 F
Veterinary Fees                                                  58,838                                      65,700               6,862 F
Blacksmith Fees                                   4,984                                5,475                 491 F
Supplies                                               10,178                            12,045               1,867 F
Total Variable Expenses                                  178,390                       192,720             14,330 F
Contribution Margin                                          201,610                       354,780          153,170 U
Less:  Fixed Expenses
Depreciation                                         40,000                            40,000          -0-
Insurance                                             11,000                            11,000          -0-
Utilities                                                 12,000                            14,000          2,000 F
Repairs and Maintenance                    10,000                            11,000          1,000 F
Labor                                                   88,000                            95,000          7,000 F
Advertisement                                      12,000                              8,000          4,000 U
Entertainment                                      7,000                                5,000          2,000 U
Total Fixed Expenses                                       180,000                       184,000          4,000 F
 
Net Income                                                      $21,610                       $170,780         $149,170 U

Grading Guide

 

Content
Met
Partially Met
Not Met
Comments:
Based on the static budget report answered
the following questions:
o   What was the primary cause(s) of the loss in net income?
o   Did management do a good, average, or poor job of controlling expenses?
o   Were management’s decisions to stay competitive sound?
 
 
 
 
Prepared a flexible budget report for the year.
 
 
 
 
Based on the flexible budget report, answered the following questions:
o   What was the primary cause(s) of the loss in net income?
o   Did management do a good, average, or poor job of controlling expenses?
o   Were management’s decisions to stay competitive sound?
 
 
 
 
Answered the following question:
·       What course of action does student recommend for the management of Green Pastures?
 
 
 
 
Showed work in Microsoft®Word or Excel®. Completed calculations/computations using Microsoft®Word or Excel®.   
 
 
 
 
The examination is a minimum 700words in length.
 
 
 
 
 
 
 
 
Total Available
Total Earned
 
 
 
6
#/6
 

 
 

Writing Guidelines
Met
Partially Met
Not Met
Comments:
The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements.
 
 
 
 
Intellectual property is recognized with in-text citations and a reference page.
 
 
 
 
Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper.
 
 
 
 
Sentences are complete, clear, and concise.
 
 
 
 
Rules of grammar and usage are followed including spelling and punctuation.
 
 
 
 
 
 
Total Available
Total Earned
 
 
 
2
#/2
 

 
“WE’VE HAD A GOOD SUCCESS RATE ON THIS ASSIGNMENT. PLACE THIS ORDER OR A SIMILAR ORDER WITH Essayfount.com AND GET AN AMAZING DISCOUNT”
The post Green Pastures appeared first on essayfount.


What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."


"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"