So your new accountant could practice the budgeting process in your for-profit company, you want her to compare budgeting methods for two different kinds of entities.
You give her information for a for-profit and for a nonprofit entity and ask her to complete the following:
- Given the assumptions and data in this Excel file:
- complete next year’s budgeted figures for each entity within the same Excel worksheet (yellow cells)
- include your reasoning for most of the budgeted figures (green cells)
Because of a bad recession, government grants were not cut by 50% but are eliminated completely for next year’s budget and fundraising efforts—despite an increase in expenses—did not improve at all.
- Write a memo of 300–400 words explaining what you would recommend that the museum manager do.
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