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SAMPLE REPORT To: L. Benson From: J. Student(s} Subject: January through June 2016 Budget I have completed the budget for the first half of the next year and have produced the following analysis: issues and Problem Areas: Summarize the key weaknesses in the proposed budget, given the established pricing, inventory, receivable, payable, dividend and cash management policies. Strategies: Propose at feast 3 changes to current policies that will address the weaknesses which you have identified. Describe your reasoning for the suggestions you are making. For example, if you suggest raising the sales price in the off-season, why do you think it would make sense to the customer to pay more in January for a chair less likely to be used in the winter. Prepare at least 1 set of alternative budgets reflecting the outcomes of the strategies you are suggesting. You must comment on the impact of your suggestions on cost structure, profitability and cash flows. You must assess the risks associated with your strategies and recognize the influence one set of suggestions will have on other parts of the budget. For example, what affect will increasing the sales price have on sales volume? Would the impact be the same throughout the year? How would you increase the voiume? Try to incorporate some of the concepts we have covered so far in the class, such as contribution margin and break-even. You should explain any strategies that you considered and rejected because they did not significantly improve the situation. Conclusion Provide a brief conclusion

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