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Business Performance Analysis Report

This document contains 4 cases of management reporting tasks: 1) A raw materials budget case showing purchases, usage, inventory, and costs for January and February. 2) A cash receipts case showing current and next month receipts. 3) A credit sales case showing monthly sales amounts and percentages over time. 4) A case projecting sales using a moving average method, showing actual sales, trend, seasonal variation, and forecasts over several years and quarters.

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Millania Thana
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375 views2 pages

Business Performance Analysis Report

This document contains 4 cases of management reporting tasks: 1) A raw materials budget case showing purchases, usage, inventory, and costs for January and February. 2) A cash receipts case showing current and next month receipts. 3) A credit sales case showing monthly sales amounts and percentages over time. 4) A case projecting sales using a moving average method, showing actual sales, trend, seasonal variation, and forecasts over several years and quarters.

Uploaded by

Millania Thana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

01 Task Performance – Management Reporting

CASE 1: Raw Materials Budget


January February
Sales (units) 4,000 5,000
Ending inventory (units) 1,500 1,800
Beginning inventory (units) (1,300) (1,500)
Production units 4,200 5,300
Materials usage per unit (kg) 2 2
Total Usage 8,400 10,600
Ending inventory (kg) 1,060 1,260
Beginning inventory (kg) (1,000) (1,060)
Total purchases (kg) 8,460 10,800
Price per kg 3.50 3.50
Total purchases (PHP) P29,610 P37,800

Total Purchases
January (8,460/2) = 4,230 units
February (10,800/2) = 5,400 units

CASE 2: Cash Receipts


Current Month Next Month
January
500,000 x 20% 100,000
500,000 x 80% P400,000

CASE 3: Credit Sales

February March April May


January
45,000 x 70% x 90% P28,350
45,000 x 15% P6,750
45,000 x 10% P4,500
February
65,000 x 70% x 90% 40,950
65,000 x 15% 9,750
65,000 x 10% P6,500
March
72,000 x 70% x 90% 45,360
72,000 x 15% 10,800
72,000 x 10%
April
85,000 x 70% x 90% 53,550
Total P28,350 P47,700 P59,610 P70,850
CASE 4: Projecting Sales using Moving Average

Moving
Year Quarter Actual Sales Trend SV
Average
4 1
2
3
4 24
5 1 8
30.5
2 30 30 0
29.5
3 60 31 29
32.5
4 20 35 -15
37.5
6 1 20 40 -20
42.5
2 50 45 5
47.5
3 80 50 30
52.5
4 40 54 -14
55.5
7 1 40 57 -17
58.5
2 62

3 92
4 51
8 1 51

Average movement in trend = (57 – 30)/(8-1) = 3.86


Forecast = 57 + (3.86 x quarters after from Q1 year 7) + seasonal variation
Q4 = 57 (3.86 x 2) – 14 = 50.72 or 51
Q1 = 57 + (3.86 x 3) – 18 = 50.58 or 51

Using the moving average method, we can assume that the predicted sales for the final quarter of year 7
will be lower than those for the third quarter. However, the first quarter of the following year, year 8, will be greater
than every previous year's first quarter.

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