Please read the scenario below, and then answer the questions that follow in a 3-page analysis. The questions will guide your analysis of the situation, but they need to be presented as part of a report to the owner of the company.
Scenario:
Dancin’ Donuts, established in January 2019, is a thriving new business specializing in low-carb donuts. The 2019 keto diet fad led to increased sales, and the chief financial officer (CFO) prepared a robust budget for 2020. In early March 2020, the small business had record-breaking sales but abruptly needed to shut its doors because of the global pandemic. The CFO conducted the following analysis for the month of March:
Dancin’ Donuts March 2020
Budget
Actuals
$ Var
%
Total Revenue
200,000
196,947
-3,053
-2%
Total Cost of Goods Sold
100,000
98,000
-2,000
-2%
GROSS PROFIT
100,000
98,947
-1,053
-1%
Total Expense
75,000
72,000
-3,000
-4%
Total Interest Income
200
100
-100
-50%
Total Other Expense
1,000
1,000
0
0%
-800
-900
-100
13%
Earnings Before Interest, Taxes, Depreciation, & Amortization (EBITDA)
24,200
26,047
1,847
8%
Total Interest Expense
6,400
6,385
-15
0%
Total Depreciation & Amortization
10,000
10,000
0
0%
Earnings Before Taxes (EBT)
7,800
9,662
1,862
24%
Total Income Taxes (30%)
2,340
2,899
559
24%
Net Income
5,460
6,764
1,304
24%
Please answer the following questions:
- What does AVB stand for?
- What is the total revenue for March 2020 when compared to the budget?
- What is the variance from the budget in the net income for the month?
- What is the income tax percentage for the month?
Submitting your assignment in APA format means, at a minimum, you will need the following:
- Title page: Remember the running head. The title should be in all capitals.
- Length: 3 pages minimum
- Body: This begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
- Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
Grading Rubric: Maximum 100 Points
Grading Criteria
Points
Deliverable requirements addressed; understanding of material and presenter’s message and intent are clear
40 points
Followed assignment guidelines and criteria
20 pts
Yes/Complete
Mostly
Not at all
Overall quality
20 pts
Excellent
Satisfactory
Needs Improvement
Scholarly research that supports the writer’s position is properly acknowledged and cited, and direct quotations do not exceed 10% of the word count of the body of the assignment deliverable
25 points
Title page, table of contents, tables, exhibits, appendices or reference page included
12.5 pts
Yes
Partially
Not at all
Content is original with less than 35% match
12.5 pts
Yes
36–50%
51% or over
Critical thinking: Position is well-justified; logical flow; examples
10 points
Position is justified with examples
5 pts
Excellent
Satisfactory
Needs Improvement
Presentation flows logically
5 pts
Excellent
Satisfactory
Needs Improvement
Structure: Includes introduction and conclusion, proper paragraph formatting, and reads as a polished academic paper or professional presentation, as appropriate for the required assignment deliverable
7.5 points
Includes introduction and conclusion
2.5 pts
Excellent
Satisfactory
Needs Improvement
Paragraphs are formatted properly
2.5 pts
Excellent
Satisfactory
Needs Improvement
Reads as polished academic paper or presentation
2.5 pts
Excellent
Satisfactory
Needs Improvement
Mechanical: No spelling, grammatical, or punctuation errors
10 points
Spelling and grammar are accurate
5 pts
Yes
Partially
Not at all
Punctuation is accurate
5 pts
Yes
Partially
Not at all
APA: Deliverable is cited properly according to the APA Publication Manual
7.5 points
References are cited in accordance with APA formatting
5 pts
Yes
Partially
Not at all
Reference page is included
2.5 pts
Yes
Partially
Not at all
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