Step 1 – Prepare memo – Evaluate the Original Assumptions in the Budget to Publicly Available information In this part of the project, critically assess the assumptions the controller gave you to develop the master budget. To prepare for this step, should review the basics of budgeting. Review publicly available data related to the assumptions concerning sales volume, sales prices, cost of sales and selling, general and administrative costs for the automobile industry in general and for Ford in particular. You may want to search the Web for automotive industry reports that were relevant at the beginning of the forecast period. The analysis will be presented as a memo to the Controller. To understand better the budget process at Ford, review the prior year’s Statement of Cash Flow and Balance Sheet. Identify major changes that might occur during the current year. Compare your results to the 2015 actual for Ford’s automotive division. Research the advantages and disadvantages of benchmarking with major competitors. Step 2 – Prepare memo – Memo to Management on an Ethical Issue You interviewed several mid-level managers. During conversations with the staff, you discover that several managers routinely submit unrealistic budget expectations to top management. As a result, you are now faced with a dilemma. As a professional accountant, and member of the Institute of Management Accountants, you must decide whether or not to communicate this information to the controller either before or at the same time you submit your report.