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ACCT 241: Principles of Managerial Accounting Fall 2013 Semester Project: Earrings Unlimited Budget Project Objectives: Students will prepare a Comprehensive Master Budget and Budgeted Financial Statements for Earrings Unlimited for the three-month period ending June 30. This includes: Sales Budget, Cash Receipts Budget, Merchandise Purchases Budget, Cash Disbursements Budget, Cash Budget, Budgeted Income Statement using the Contribution Format, and a Budgeted Balance Sheet. Students will also perform CVP analysis to determine the break-even point and complete a sensitivity analysis to a sales price change and a change in the price of purchases. Project Requirements: I. (70 points) Complete the Earrings Unlimited Case on an individual basis using the Excel template found on Blackboard under Course Documents, Project. Enter your answer on the Worksheet labeled “Part I Answer.” Use formulas in the cells for calculations (i.e., do not type in a total that you have determined with your calculator.) II. (10 points) Use CVP Analysis to determine the break-even point in units and sales dollars for Earrings Unlimited for the Quarter Ended June 30. You must show all calculations. Enter your response on the Project Excel file in the Worksheet labeled “Part II Answer.” III. (20 points) Determine Sales Revenue & Net Income for the 3-month period ending June 30, and the ending Cash Balance as of June 30 assuming the unit Sales Price is expected to increase (effective April 1) to $12, and the unit Purchase Price is expected to increase (effective April 1) to $5. Reconcile the changes. To solve this, use the Worksheets provided in the Project Excel file (i.e., the worksheets titled “If SP = $12,” “If Purch Pr = $5,” “If SP=$12; and Purch Pr = $5” ). In each Worksheet, start with the Base Case data (what you entered as “Part I Answer”) and then change the budget and/or financial statement data affected by the…