Part Two: Departmental Budget
Second, create your annual departmental budget per your boss request. As part of your capital budget proposal, you will need to apply the cost of your capital
budget item, and all associated costs, to a specific department within the organization.
Using the budget sample as an example, create your own departmental operating budget in the Operating Budget sheet. Please note that this is just an example
provided to help you get started. You do not have to use all of the budget items found in the budget sample if they do not apply to your department. You may
find that additional items are appropriate to include for your department beyond what is included in the sample. Use the Capital Budget sheet to calculate the
costs of your capital budget item.
As you create your departments budget, consider items such as hiring new staff, training, technology, and any other related costs. Also account for the potential
revenue generated as a result of implementing the capital budget item as well as any potential expenses incurred by your department. These should be highlevel estimates.
To complete this part of the assignment, the following items, as well as those listed above, must be addressed:
I. Budget (Please Note: Respond to the following critical elements in the proposal outline, with the exception of element G below, which should be
submitted as an Excel spreadsheet)
A. Statements: What statements were utilized for formulating your proposal and why? Select the appropriate statements for analysis and defend
your choices.
B. Expenses: What major expenses are associated with your proposal items?
C. Budgetary Accounts: What budgetary accounts (i.e., salaries) are impacted and in what way?
D. Reasoning: Based on the previous years budget data, why did you select these budget items for adjustment over other options?
E. Ratios: Research the various ratio options (including ROI) used for reviewing financial statements. Determine what ratios you will use for your
proposal items and explain why.
F. Ratio Calculations: Using budget statements, formulate calculations that support each recommendation.
G. Projected Departmental Budget: Create a projected departmental budget for the upcoming year that incorporates the costs of the proposed
changes. (This will be submitted as an Excel spreadsheet)
Guidelines for Submission: You will submit two deliverables for this assignment. Your departmental budget must be submitted as an Excel spreadsheet. Your
proposal outline must be submitted as a single document. It should be 13 pages in length with double spacing, 12-point Times New Roman font, one-inch
margins, and citations in APA style where applicable.