Browning Manufacturing Company, Case Study Example
Words: 684Case Study
The Browning Manufacturing Company’s management prepared a budget of the financial operations expected in the ending year. The budget included all aspects concerning the operations of the following year. This budget had the balance sheet expected for the year ending plus an income statement account, expected in the next year. The budget preparation was quite involving since all the operations of every department had to undergo careful and critical consideration, before inclusion in the budget. The operations in the company were not about only one department but several others like the sales and marketing department, the finance department and the general production department.
The integration of the different projections from the departments in the company was essential for proper coordination and profitability in the following year’s operations. The budget was, therefore, to for offer general guidance to the company. The 2009 projected statements of finance were compared with the figures that were budgeted for 2010 the time of their preparation (Thomas & Ward, 2009). These were as indicated by the various exhibits that were presented. The accepted 2010 expected operations budgeted for entailed various things. It involved the expected sales, the purchases of goods and services, and assets conversion into work in the process. Additionally it covered the transfer of work in the process into finished goods, the projected costs for the finished goods, financial transaction, cash receipts from customers, liabilities’ cash payments, the 2010 approximated federal tax, and the dividends for the year paid in cash (Britton & Waterston, 2009).
Obviously, the approximate operation costs for the company are well detailed and taken care all departments. The budget for the Browning Manufacturing Company gives the budgeted costs from the time of purchase of goods, their processing in the production process, up to the time they are sold out to customers. This formed a solid foundation of operations within the company, with minimal disruptions in that year, as far as the financial implications were concerned. The financial aspects in a company are the source of all problems in a company. When they are poorly budgeted or they full of assumptions, then there is a likelihood of experiencing various financial hardships in a given year. In the budget making process, the main interest of the company’s management is in the cash position of the budget when the year ends. This is because it will be able to gauge the entire presentation of the corporation from the figures when making comparisons with the positions in the previous years. The management was also aware of the need of having a cogent and well-maintained relationship with the suppliers (Britton & Waterston, 2009).
The Browning Manufacturing Company has its own strengths and weaknesses, which drawn from the way budgeting for its finances. The careful planning of its operations forms the core strength of the company. Planning is a vital element of consideration for any company that desires to realize growth in its operations. A different notable strength is the investing power. From the budget projections, it is evident that the company endowed with a great ability of investing, which is also beneficial for growth. The company also seems to enjoy a cordial relationship with its suppliers. That is why the top management was able to note the need of maintaining a satisfactory relationship with them. Among the weaknesses of the company is a poor consideration of its employees (Britton & Waterston, 2009). The projected budget indicates that the company does not prioritize the welfare of its employees, who are apparently the most dependable in the production process.
A proper strategy of dealing with the main issue, which lies in the weakness of the company, is to make a company policy for salary review and promotion. This seems to lack, and with the lack caution, the company may never realize the project financial positions at the end of the year (Thomas & Ward., 2009). This is because a dissatisfied, work force cannot deliver as required.
Britton, A., & Waterston, C. (2009). Financial Accounting. London: Financial Times/ Prentice Hall
Thomas, A., & Ward., A. M. (2009). Introduction to Financial Accounting. New York: McGraw-Hill Higher Education
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