Written for an owner deciding on a credit line, the GB519 Unit 6 master budget below runs quarterly schedules and a cash budget that end in pro forma statements. Searches like "gb 519 unit 6 assignment example", "gb519 unit 6 sample" and "gb519 unit 6 example" land here.
What a finished GB519 Unit 6 master budget looks like
A workbook of ten linked tabs and a two-page cover memo. The assumptions tab lists every driver with its origin: barrels by channel, price per barrel for draft, packaged and taproom sales, malt and hops contract prices, a policy of holding no more than a month of canned inventory because freshness sells the beer, and seasonal packaging staff from May through August. Sales, production, direct materials, labor, overhead and selling and administrative tabs follow, each drawing only from tabs to its left. The cash budget brings in distributor collections on thirty-day terms, excise tax payments and a 180,000-dollar fermenter deposit, and shows the balance dipping below its 75,000-dollar floor in the second quarter. A credit draw peaking near 310,000 dollars covers the gap. Pro forma income statement and balance sheet close the workbook.
How a GB519 Unit 6 example is structured
The assumptions tab is the budget's foundation, built so a manager could change one driver and watch every tab respond. Revenue is budgeted by channel because each collects cash differently, draft accounts on delivery, the distributor on terms, the taproom immediately, and blending them would hide the timing that creates the second-quarter squeeze. The freshness policy is treated as a hard constraint: canned beer cannot be built far ahead of summer, so production and purchases peak alongside sales rather than before them. The cash budget sits after the operating schedules and is where the budget becomes a decision document, its minimum balance rule, credit draws and repayments shown line by line. The cover memo reads the result for the owner: the facility to request, the quarter the fermenter deposit should fall in, and what a cooler summer would do.
Every driver on one tab
Channel volumes, prices, contract costs, the canned inventory limit and seasonal staffing, each with its source, feeding every schedule that follows.
Three channels, three collection patterns
Draft, packaged and taproom revenue budgeted separately because each turns into cash on a different clock.
Freshness as a constraint
No more than a month of cans on hand, which keeps production and purchasing from running ahead of summer demand.
The second-quarter squeeze
Distributor terms, excise payments and the fermenter deposit push cash below its floor, with a credit draw peaking near 310,000 dollars.
Pro forma statements that tie
Budgeted income statement and balance sheet built from the schedules, with ending cash matching the cash budget exactly.
What the owner signs
A facility size, a deposit date and the effect of a cool, wet summer, set out in a two-page cover memo.
Where marks go in GB519 Unit 6
A budget whose cash schedule and pro forma balance sheet disagree loses the most, because a model that does not tie signals a broken link somewhere and every figure becomes suspect. Revenue budgeted as a single line, ignoring that channels collect on different terms, is the next deduction and usually hides the timing problem the case was built around. Hard-coded numbers downstream of the assumptions tab draw losses where the workbook is graded, since the budget can no longer be tested. Inventory built far ahead of peak demand, in defiance of the case's freshness limit, reads as a model run on a manufacturing template. A cash budget without a minimum balance or financing section misses the decision the unit leads to, and a cover memo that recaps schedules without recommending forfeits the writing marks.
Get a GB519 Unit 6 example written to your instructions
The Unit 6 case and its operating assumptions come first, with the budget template if one was issued and the rubric. Every schedule links to a single assumptions tab, the cash budget carries its financing section, and the pro formas tie. A short memo states what management should do. First custom sample free; allow 24-48h.
GB519 Unit 6 questions, answered
Does the master budget have to be monthly?
Only if the case asks. Quarterly budgets are common in GB519 problems, though a cash budget sometimes needs monthly detail inside the quarter where the squeeze happens. The sample follows the periods the instructions set, and when quarterly figures would hide a month in which cash dips below its floor, it notes that month and shows the finer breakdown for that stretch.
How are pro forma statements connected to the schedules?
Directly. The budgeted income statement takes revenue from the sales schedule, cost of sales from production and materials, and expenses from the overhead and selling tabs. The balance sheet takes ending cash from the cash budget, receivables from collection terms and inventory from the production schedule. When everything links, the balance sheet balances without a plug, which is the check graders use first.
What should the cover memo recommend?
The decisions the budget makes visible. Here that meant the size of the credit facility, the timing of a fermenter deposit and the effect of weaker summer sales on both. A memo that walks through each schedule in order reads as a recap. GB519 rubrics usually weight the recommendation, so the memo leads with it and uses the schedules as evidence.