Excel Project Assignment Page 1 of 3

A. Overview:
You have been tasked by Raef, Inc., a manufacturer of sandals, to construct a budgeting “what-if”
model using Microsoft Excel. Background information is provided in the Raef Initial Budget Data file
(.pdf file located in this Individual Excel Project Assignment module). Budgets and Pro-forma
financial statements based on Raef’s initial budget data are provided in the Raef Preliminary Master
Budget file (.pdf file located in this module). Sample “what-if” data with correct results are provided in
the Excel Project Sample Data file (.xlsx file located in this module) to allow you to test and check the
accuracy of your model.
The purpose of the model is to provide Raef the ability to investigate the impact of changing forecasted
items. Raef wants to be able to change any of the inputs in the model and have the resulting budgets
and pro-forma financial statements (listed below) instantly incorporate these changes. In other words,
your model must be able to perform “what-if” analysis.
As a starting point you will use the Excel Project Starter File (.xlsx file located in this module).
The inputs based on the Raef Initial Budget Data have already been entered in the “Inputs”
worksheet (“tab”) of the workbook. It is important to use the Excel Project Starter File to build
your model because the subsequent sample “what-if” data provides information in this same
format (i.e. all of the related “what if” numbers will be in the same cells) which in turn will (1)
allow you to input the sample “what-if” data into your Excel budgeting model by utilizing the
“copy” and “paste” functions, and (2) the workbook that you construct will be tested by the
instructor (as the user) through changes to the data in the “Inputs” worksheet utilizing the “copy”
and “paste” functions.
Within the Excel Project Starter File, the Revenues Budget worksheet has also been completed
to provide an example for the remaining worksheets of your model.
Raef needs a Microsoft Excel file that contains budget worksheets in the same format as the initial
budget data in the Raef Preliminary Master Budget file. However, the budget model you build in the
Excel file must be able to update each of the budgets to reflect changes to the input data. The Excel
budget model must contain the following fourteen (14) worksheets (“tabs”) in the order given:
1. Inputs – This one worksheet contains all the inputs needed to calculate the worksheets below. This
is the only worksheet with cells that the user will be able to modify once the model is complete.
2. Revenues Budget
3. Production Budget
4. Direct Materials Usage Budget
5. Direct Materials Purchases Budget
6. Direct Manufacturing Labor Costs Budget
7. Manufacturing Overhead Costs Budget
8. Unit Costs of Ending Finished Goods Inventory Budget
9. Ending Inventories Budget (for both Direct Materials and Finished Goods inventories)
10. Cost of Goods Sold Budget
11. Non-manufacturing Costs Budget
12. Cash Budget
13. Budgeted Income Statement
14. Budgeted Balance Sheet.
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B. Requirements:
The model should include the following (grading is given in parenthesis):
1. Each of the budget worksheets will accurately display amounts derived from the “what-if” data
appearing on the “Inputs” worksheet. (50%)
Excluding header information, all Budgets (Items 2 through 14 in part A. above) will not contain
any typed-in numbers. Numbers displayed in the Budgets will be the result of formulas embedded
in the budget worksheets utilizing data from the “Inputs” worksheet and/or prior budget
worksheets.
Amounts will be correct to the cent ($0.01).
Note: if you rounded amounts for presentation, do not use these rounded amounts for subsequent
calculations as rounding error will be introduced.
Note: you will need to modify the Manufacturing Overhead Costs Budget and Unit Costs Budget to
accommodate different batch sizes for basic and deluxe sandals and to accommodate for the
possibility of partial batches. I.e., the setup time for a partial batch (e.g., 10 units) is the same as
a full batch (e.g., 50 units); as such, the number of batches must be rounded up to the next
integer.
Note: The Results section the “Inputs” worksheet (cells B51:C70) also needs to accurately reflect
the budget amounts derived from the “what-if” data.
2. Each budget will have proper header information (3 lines): (5%)
 Name of budget or statement
 Company Name
 Date information (e.g., “As of…” or “For the month ended…”)
3. Budgets will display all the information displayed in the text solution for that budget and must
change as the related “Inputs” change. (10%)
For example, in the Raef Preliminary Master Budget, Direct Material Usage Budget, note that the
line that reads:
“Basic (2,150 units x 1.30 yds.; 0.00 b.f.).”
“Deluxe (2,950 units x 1.50 yds.; 2.00 b.f.)”
Your descriptions must display all of this information in a connected string (i.e., concatenated)
and the information must change as the related “Inputs” change. Make sure amounts are properly
formatted, labeled, and are understandable. Excel functions like “Concat” “Text” and “&” allow
for formatted concatenation.
4. Naming worksheets: (5%)
(i.) Within the project workbook, name the first (farthest left tab) worksheet “Inputs.”
(ii.) Use the title of each worksheet's budget as the name for that worksheet, e.g., name the second
worksheet "Revenues" or “Rev.” Try to keep worksheet titles to one word, feel free to
abbreviate, e.g., use "COGS" for Cost of Goods Sold. Follow the sequence in section A.
5. Cells will be white. Text will be black. Do not color the tabs or use a font that is difficult to read.
(5%)
6. Format all worksheets such that each prints on one page. (5%)
I check this using “Print Preview,” I suggest you set each worksheet to print to one page to avoid
differences between printers.
7. Format all worksheets such that each budget is professional in appearance. (10%)
Unacceptable budgets have misspelled words, inconsistent alignment, improper formatting, etc.
8. The model will be "protected" to only allow the user to make changes to the cells in the “Inputs”
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worksheet, and within the “Inputs” worksheet to only allow changes to the numbers for "what if"
analyses. (10%)
Note: this means that the “Inputs” worksheet will be protected while the user can still change cells
B3:C51. All other worksheets will be protected. The user does not need the password to: open the
file; change the contents of Inputs cells B3:C51; view or print any of the worksheets.
Use “password” as the password (without the quotation marks) for the protection.
C. Advice:
1. Study Chapter 10 of the eBook and the Chapter 10 notes.
2. Use the Raef Preliminary Master Budget as a starting point for the budgets. However, do not just
“blindly follow” the solution.
3. Use the Excel Project Sample Data “what-ifs” to check the accuracy of your model.
4. Try to solve problems on your own. For example, if you’re having difficulty complying with
Requirement B.8., Google phrases such as “Excel protect cells” or “Excel basic operations.” In
addition, the Connect course webpage contains Excel tutorials in Resources/Media Bank link
which is located just below the eBook link.
D. What-if Analysis Summary
For the Excel Project assignment:
1. Download the Excel Project Starter File (.xlxs) from this module.
2. Build your budgeting “what-if” model to include the 14 worksheets based on the information
provided in the Raef Initial Budget Data (.pdf) and Raef Preliminary Master Budget (.pdf) files.
3. Test your model using the Excel Project Sample Data file (.xlxs). This file is in the same format
as the Excel Project Starter File (.xlxs) but contains different “what-if” data.
4. Confirm that your budgets automatically reflect the new data.
5. Confirm that you have completed the results section of your Inputs worksheet to reflect the
corresponding budget information, i.e., the line items listed below “Results:” on row 54
through row 70 of the Inputs worksheet.
6. Confirm that you have protected each of the worksheets within your workbook and the “Inputs”
worksheet only allows a user to make changes to the input data cells.
7. Save your file as “Lastname_Firstname”, e.g., Bruce_Davidson.xlsx
8. Upload your Excel file with your budget model through the Dropbox in this Individual Excel
Project Assignment module.