Mirrors15%2,545,685509,137610,965661,878763,706Decorative items10%1,697,124339,425407,310441,252509,137Lighting Fixtures20%3,394,247678,849814,619882,5041,018,274GST Cash flow analysisCASH FLOW ANALYSIS-GST2010/11Qtr1Qtr2Qtr3Qtr4GST Collected1,697,124339,425407,310441,252509,137Less GST Paid12,281,358282,913306,854326,325365,267GST Payable415,76556,512100,456114,927143,870Aged Debtors budgetAGED DEBETORSBUDGETTOTALQtr1Qtr2Qtr3Qtr4Sales16,971,2373,394,2474,073,0974,412,5225,091,371% Debtors Sales20%20%20%20%Total Debtors100%678,849814,619882,5041,018,274Current84%570,234684,280741,304855,35030 Days10%67,88581,46288,250101,82760 Days5%33,94240,73144,12550,91490 Days1%6,7888,1468,82510,183Budget notes:-Reason for profit and loses:- Profits prior year are $851,188 in 2008 and $1,019,499 in 2009.Reasons are that there is an increasing customer base and the business is built on superior after sales service.
Effectiveness of existing financial management approachesInadequate analysis of revenue/expense to produce an informed estimate.Lack of computer software to produce timely and detailed reports.Too much reliance on qualitative input rather than balancing it with quantitative data and analysis.Comment on effectiveness of existing financial management approaches:- According to my assumptions future sales same sales growth 2010/11 as 2009/10. Inflation will be 4% per annual. Gross profit rate expected to reduce by 1%All assumption basis form budgetSales breakup – bathroom fittings 30%, bedroom fittings 25%, mirrors 15% and decorative items 10%, lighting fixtures 20%.Increase the advertising budget by $70,000 over the 2009/10 – $200,000 is planned for the first quarter with the balance apportioned equally over the following three quarters.Increase wages and salaries by $172,500 over the 2009/10 amounts.2010/11 target apportioned across the quarters in the same % as was achieved in 2009/10. Accounting fees fixed amount of $10,000.Interest charges $84,508.Bank charges same as 2009. New expense such as store supplies –2008/09 results was $3,500 of the cleaning expense and $3,605 of the 2009/10 result.1. The statutory requirements for tax compliances are listed below:* 9% of wages and salaries is to be calculated as superannuation for every quarter* 4.75% is payroll tax of wages and salaries for every quarter* Worker compensation is 2% of salaries and wages for every quarter* For every quarter the company tax is 30% of net profit before taxes.