ACC00146 Management Accounting - Sunny Days 2020 Budget Report

This report presents a thorough analysis of the Sunny Days 2020 budget, prepared for a management accounting assignment. It includes an executive summary, table of contents, and an introduction to budget and budgetary control. The report analyzes the expected results for 2020, providing a detailed functional budget based on market parameters, historical data, and various assumptions regarding inventory, cash collection, and payment policies. It highlights a seasonal effect on sales volume and projects total sales revenue, gross profit, and net income. The report also includes a product-wise analysis of contribution margin, identifying the most and least profitable products. A cash position analysis reveals the company's liquidity and cash management efficiency. Recent market trends are assessed, and recommendations are provided, such as discontinuing the beach umbrella product. The report concludes that budget and budgetary control are essential for achieving cost efficiency and overall company objectives, offering strategies to improve revenue and maximize profits. References and a bibliography are included.