Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ? 2. The Reebok Company manufactures and sells fashion goods. The company has four divisionsstrategically located near all the major markets. Each division operates in the independentresponsibility center and is evaluated at the end of the year as an autonomous profit unit. Themanagement of Reebok is not very happy with the performance of one of its division whose cashbudget a presented below. The management believes that the division has not achieved the desiredgrowth and profitability mainly because of its slow collection policy.Budgeted statement of Cash Receipts and Cash Disbursements for the XYZ Company for the Yearended 30th June 2019.ParticularsOpening Cash BalanceCash ReceiptsTotal Cash AvailableCash DisbursementInventoryAsset PurchaseOperating ExpenseTotal DisbursementsMinimum Cash BalanceRequiredTotal Cash NeededExcess of CashAvailable over CashDisbursementTotal (85,00060,0001,45,00025,00060,00015,0001,00,00020,0001,20,00025,000I Quarter(3)20,00015,00035,0005,00030,0005,00040,0005,00045,000-10,000II Quarter(3)15,0006,00021,0006,00015,0005,00026,0005,00031,000-10,000III Quarter IV Quarter(3)(3)30,00026,00056,0009,0005,0002,50016,5005,00021,50034,50020,00013,00033,0005,00010,0002,50017,5005,00022,50010,500After a tremendous amount of research, it has been found that some areas of concernnoticed by management are1) In preparing the budgets, participation from various levels with the organization ismissing2) The relevant people for implementing the budgets are not consulted. These are thepeople who have the ability to control the item that is budgeted, and who will berewarded according to its accomplishments.3) The budget committee has not reviewed the budget to make sure there are no internalinconsistencies.In the context of his information, discuss how the Reebok's company budgeting process could berevised to correct the problems.

A budget is an instrument used to help in planning, programming and control of business activities.…

2. The Reebok Company manufactures and sells fashion goods. The company has four divisions strategically located near all the major markets. Each division operates in the independent responsibility center and is evaluated at the end of the year as an autonomous profit unit. The management of Reebok is not very happy with the performance of one of its division whose cash budget a presented below. The management believes that the division has not achieved the desired growth and profitability mainly because of its slow collection policy. Budgeted statement of Cash Receipts and Cash Disbursements for the XYZ Company for the Year ended 30th June 2019. Particulars Opening Cash Balance Cash Receipts Total Cash Available Cash Disbursement Inventory Asset Purchase Operating Expense Total Disbursements Minimum Cash Balance Required Total Cash Needed Excess of Cash Available over Cash Disbursement Total ( I Quarter II Quarter III Quarter ₹) (₹) (₹) (₹) 85,000 60,000 1,45,000 25,000 60,000 15,000 1,00,000 20,000 1,20,000 25,000 20,000 15,000 35,000 5,000 30,000 5,000 40,000 5,000 45,000 -10,000 15,000 6,000 21,000 6,000 15,000 5,000 26,000 5,000 31,000 -10,000 30,000 26,000 56,000 9,000 5,000 2,500 16,500 5,000 21,500 34,500 IV Quarter (₹) 20,000 13,000 33,000 5,000 10,000 2,500 17,500 5,000 22,500 10,500 After a tremendous amount of research, it has been found that some areas of concern noticed by management are 1) In preparing the budgets, participation from various levels with the organization is missing 2) The relevant people for implementing the budgets are not consulted. These are the people who have the ability to control the item that is budgeted, and who will be rewarded according to its accomplishments. 3) The budget committee has not reviewed the budget to make sure there are no internal inconsistencies. In the context of his information, discuss how the Reebok's company budgeting process could be revised to correct the problems.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q