Management accounting Assignment Example | Topics and Well Written Essays - 1500 words

Management accounting - Assignment ExampleThe report elaborates the cash budget, budgeted income statement and budgeted statement of financial position based on the uncommitted data that is estimated by Edith. Thus, it helps her to recognize the benefits and deficiency of her financial plan to start the new business. The capital budgeting techniques are applied to evaluate the financial position of the business. The sensibility analysis is also executed for examining the effect of change in cost of sales and price on cash flow. The calculations are depicted in the surpass sheet however, the tables are provided in the report to discuss about the financial viability of the business.The table above highlights the fact that the business will group meeting highly displace ending cash balance during the period from January to June 2015. The fluctuation is shown in the figure provided below.From the above figure it can be concluded that the business will encounter fluctuations in endin g cash balance due to the variations in sales and expenditure of the business. Hence, it can be stated that the estimated sales value are not appropriate for the business. Edith needs to revise it for increasing the ending cash balance during the referred time period.Abudgeted income statementconsist all the items that are present in the income statements of a particular company (Baker and English, 2011 Balakrishnan, Sivaramakrishnan and Sprinkle, 2009). The only difference is that the income statements are prepared after considering the actual value of the business whereas the budgeted income statements is a projection of the income statement during budgeting periods in the future. A budgeted income statement is prepared for Ediths business to highlight its profit or loss at the end of 2015. The budgeted income statement is prepared for one course of instruction staring from January 2015 to December 2015 (including both months).The table provided above evaluates the profit of Edit hs