Case: Lukes Diner has planned sales of $375, 000 for the upcoming spring/summer season. This is a
Question:
Case: Luke’s Diner has planned sales of $375, 000 for the upcoming spring/summer season. This is a 2% sales increase that could be attained this year due to the introduction and addition of a new beverage and snack line. The turnover goal for the season is 1.6. Reductions are planned to come in at 10%, Operating Expenses at 40%, cash discounts of 0.8% and a profit for the department of 4.5%. Please show your work.
Month (Spring/Summer Season) | % of Season’s Sales | % of Season’s Reductions |
February | 12% | 15% |
March | 14% | 17% |
April | 17% | 14% |
May | 21% | 21% |
June | 24% | 18% |
July | 12% | 15% |
Your task is to prepare a merchandise budget plan for Luke’s Diner.
- Total Seasonal Sales Forecast (2pts) = $____________________________________________
- Total LY Season’s Sales (2pts) = $_________________________________________________
- Monthly Sales Forecast Breakdown for the Season
Month (Spring/Summer Season) | % of Season Sales | Monthly Sales Forecast TY |
February | 16 | |
March | 15 | |
April | 16 | |
May | 17 | |
June | 19 | |
July | 17 |
- Total Season Reduction Forecast TY(2pts) = $_________________________________________
- Forecast Reductions Breakdown for the Season (6pts)
Month (Spring/Summer Season) | % of Season’s Reductions | Monthly Reductions |
February | 15 | |
March | 18 | |
April | 15 | |
May | 20 | |
June | 16 | |
July | 16 |
- Forecasted BOM (Beginning of the Month) for Season. Include any additional calculation steps for the BOM.
- Forecasted EOM (End of the Month) for the Season. Include calculation or reasoning for July EOM.
Planned Sales by Month | Forecasted Sales | BOM calculation | BOM |
February | |||
March | |||
April | |||
May | |||
June | |||
July |
Month | EOM |
February | |
March | |
April | |
May | |
June | |
July |
- Forecasted Planned Purchases or Additions to Stock for the Season
Month | Planned Purchases Calculation | Monthly Planned Purchases | |
February | |||
March | |||
April | |||
May | |||
June | |||
July | |||
Total Planned Purchases | $ | ||
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Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach