Excel Model #2 Fall 2013

11/17/2013

Congratulations you have just been hired by Andee Company! Your job is to prepare their monthly performance report. The report is presented to management each month. Report includes the following: 1. A budget versus actual analysis for the contribution margin income statement. The format of the report is a four column report, with Actual data, Budgeted data, the dollar amount of the variance and the variance %. The Variance percentage is calculated by dividing the budget variance by the budgeted dollar amount. 2. An analysis of Return on Sales, Return on Investment, Capital Turnover and Residual Income. These four performance measurements are calculated for the budgeted and actual data. They also include a budget variance for these items (but they do not calculate a variance % for these items.) Prepare the performance report for Andee Company. Make your own conclusions about their budgeted versus actual performance.
Hints 1. When you create your formulas for variances, in order to have the variances show minus signs if they are unfavorable:

For things that you want more of as a business owner, because they increase income , subtract the budgeted number from the actual number. (Sales, Contribution Margin, Operating Income. This rule also applies to ROS, ROI, Capital Turnover and Residual Income because "more is better" with these performance indicators as well. For things that you want less of as a business owner,because they decrease net income, subtract the actual number from the budgeted number (Variable Costs and Fixed Costs) 2. Format your Variance %'s , ROS and ROI as a percent (find the % button up on the toolbar and click it while your cursor is in that cell). Also, format the number so it shows one decimal place. You can do that by clicking the icon on the toolbar that has a left hand arrow & zeros on it. 3. Format your Residual income to be a dollar amount. One way to do this is through "format" at the top of the screen, then "cells", then "number", then select "currency". 4. Format your Capital Turnover as a number with two decimal places.
Complete your model, then take Excel Quiz A & B to input your answers. Have your model open on your computer when you take these quizzes. Quiz A will be on the base scenario. Quiz B will alter the input data and you'll have to use your model to calculate the new answers.

Input Section for the Performance Report: Andee Company Actual 10000 5000 3000 23000 12%

Sales Variable Costs Fixed Costs Investment Rate of Return Performance Report:

Budget <---REMEMBER TO USE AN INPUT SECTION 11000 IN YOUR MODEL AND REFERENCE IT IN YOUR 6000 FORMULAS 2000 21000 12%

(place your formulas in the grey boxes) Andee Company Budget Variance

Actual Sales Variable Costs Contribution Margin Fixed Costs Operating Income Return on Sales Return on Investment Capital Turnover Residual Income

Variance %