Assignment Writing Help on Cash Budget For weaving the placemats in cotton using Existing loom

Discussion Questions

Part 1

Decision Case 22-2

Cash Budget For weaving the place mats in cotton using existing loom

Cash Receipt
sale of cotton mats$500
Total cash receipt$500
  Cash Payments
Commission$50
Purchase of cotton$350
Total Payments$400
Cash Surplus$100

Budgeted Balance sheet for weaving the place mats in cotton using existing loom

AssetsLiabilities
Current AssetsAccount Payable$124
Cash$125
Inventory of cotton$175
Total current assets  $300Stockholders’ Equity
Property, Plant, and EquipmentStockholders’ Equity396
Loom$500
Less Accumulated Depreciation(280)
Total Assets$520Total liabilities and Stockholder’s equity$520

Cash Budget for weaving the place mats in Linen

  Cash Receipt
Loan$1,000
Sale of linen$750
Total$1,750
Payments
Principal$200
Interest$180
Supplier$270
Total$650
Cash Surplus$1,100

Magnuson should consider buying the new loom because she will get more income i.e. each set sold at $ 50, substantially more than the income she gets of $25 per set using her old loom.

She should also consider the efficiency of the new loom in her decision.

Ethical Issue 22-1

The ethical issue is the increase of budget amounts for labor and supplies without the knowledge of the company headquarters.

The options are to increase the amount budgets for labor and supplies to help the smooth running of the hotel especially during emergencies or give a correct budget and use the funds given by the headquarters.

The possible consequence of Dunn’s decision is that she might be discovered and this might lead to her being sacked from her position (Brenkert and Tom 536).

Dunn should give a correct budget, and in case the hotel experiences an emergency, she should request for fund from the headquarters.

Part 2

Albert Johnson should reduce the number of individuals who benefit from the company’s health insurance. Currently, all Financial Planners and the entire administrative staff benefit.  If the benefit as only left for the Financial Planners, then the company would cut the costs. Besides, reducing the number of individuals covered by the insurance provided by the company would also help reduce the overuse of health benefits (Barrow 6).

Works Cited

Brenkert, George G, and Tom L. Beauchamp. The Oxford Handbook of Business Ethics. Oxford: Oxford University Press, 2010. Print.

Barrow, Colin. Cut Costs Not Corners: A Practical Guide to Staying Competitive and Improving Profits. London: Kogan Page Ltd, 2010. Print.