Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2!2)"#he practice is divided into three departments$ auditing, ta%, and consulting" &illable hours for each department, by 'uarter, are provided belo"
DepartmentQuarter 1Quarter 2Quarter 3Quarter 4
Auditing2,*!,+*2,!2,#a%*,*-2,+.2,22,/*Consulting!,+2!,+2!,+2!,+2Average hourly billing rates are$ auditing 0/, ta% 0.*, and consulting 0!2"Prepare the service revenue (sales) budget for 2!2 by listing the departments and shoing for each 'uarter and the year in total, billable hours, billable rate, and total revenue"
GARZA AND NEELY, CPAsSales Revenue BudgetFor the Year Ending Dece!er "#, $%#$&uarter #&uarter $De't(Billa!le)oursBilla!le Rate*otal Rev(Billa!le)oursBilla!le Rate*otal Rev(
GARZA AND NEELY, CPAsSales Revenue BudgetFor the Year Ending Dece!er "#, $%#$&uarter "&uarter +De't(Billa!le)oursBilla!le Rate*otal Rev(Billa!le)oursBilla!le Rate*otal Rev(
GARZA AND NEELY, CPAs
2,43084 204,120 1,73084 145,3203,350 93 311,550 2,790 93 259,4701,720 102 175,440 1,720 102 175,440691,110 580,2302,16084 181,440 2,66084 223,4402,26093 210,1802,83093 263,1901,720102 175,4401,720102 175,440567,060 662,070
Managerial AnalysisGreen Pastures is a farm that specializes in the boarding of broodmares and their foals. Recently they had an economic downturn which has caused them to decline in their breeding acTviTes and made business compeTTve. Green Pastures has made a plan for 2017 to adverTse more extensively, absorb expenses and entertain clients. ±his paper will examine the staTc and Fexible budgets and discuss what the causes of the loss in net incomes were. It will also go over the job performance of management and if they did a good job or not of controlling the expenses. It will also review management's decisions to stay compeTTve and if they were sound or not. In the end, it will recommend a course of acTon for the management of Green Pastures. StaTc Budget±he main causes of the loss in net income were the decrease in boarding fee and the decline in the number of boarding days. ±he number of boarding days dropped by 2,900 which is about 13% (2,900/21,900) and the boarding fee decreased by $5 which is about 20% (5/25). ±he total sales revenue