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prepare an Operating Budget on an annual basis commencing January 1, 2016 for five years.

prepare an Operating Budget on an annual basis commencing January 1, 2016 for five years.

Your Budget must include:

1- a complete rationale and basis for the calculations included
2- A complete and fully integrated set of Balance Sheets and Income Statements, commencing with the Balance Sheet as at January 1, 2016
3- A complete set of Cash Flow Statements derived from the Balance Sheets and Income Statements.
All of the assumptions used in the development of your budgeted data must be articulated

You may use either of the two sample Operating Budgets as your Guide.

1. The Ski Lodge is a skeleton 5 year budget to be used as a guide should you decide to complete a lodging Budget. On no account should you use that structure and simply change the numbers. The file is identified as Ski Lodge Budget.

2. The Bay Street Diner is a complete 1 Year Budget for 2016, including Journal Entries and Worksheet for a Restaurant operation. You may choose to use this as year 2016 and then complete the other 4 years using this structure. If you do not follow the Journal Entry process you are not allowed to use this Budget structure!!!

You are expected to develop and generate your own budgeting spreadsheet

You may:

Use an actual hospitality company as your model. You can use their operating budget, but it must be developed in your own spreadsheet, and the assumptions used must be explicitly stated.

You may invent a fictitious hospitality company and develop a five-year forecast and budget based on assumptions you develop.

In either situation you must ensure that the Budget fits together and that Balance Sheet and Income Statements developed are compatible with each other. These compatibilities must be checked. Imbalances will be severely penalised. You should note that the sample Ski Lodge Operating Budget is condensed and is intended to be used as a guide. While the sample Bay Street Diner has been completed for the year 2016 only.

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