Assignment 1 Houzit.docx - BSBFIM601 MANAGE FINANCE Assessment 1 – Project Prepare Budgets Chan Wu Jie ICM0737 Chan Wu Jie BSBFIM601 Manage Finance

Assignment 1 Houzit.docx - BSBFIM601 MANAGE FINANCE...

This preview shows page 1 - 5 out of 10 pages.

Chan Wu Jie ICM0737 BSBFIM601 MANAGE FINANCE Assessment 1 – Project Prepare Budgets
Image of page 1
Chan Wu Jie BSBFIM601 Manage Finance ICM0737 Assessment Task 1 – Prepare Budgets Sales and Profit Budgets Profit Budget 2011/12 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Revenue 20% 24% 26% 30% Sales 16,971,237 3,394,247 4,073,097 4,412,522 5,091,371 - Cost of Goods Sold 9,673,605 1,934,721 2,321,655 2,515,137 2,902,081 Gross Profit 7,297,632 1,459,526 1,751,526 1,897,384 2,189,290 Gross Profit % 43 43 43 43 43 Expenses - Accounting Fees 10,000 2,500 2,500 2,500 2,500 - Interest Expense 84,508 21,127 21,127 21,127 21,127 - Bank Charges 1,600 400 400 400 400 - Depreciation 170,000 42,500 42,500 42,500 42,500 - Insurance 13,390 3,348 3,348 3,348 3,348 - Store Supplies 3749 750 900 975 1,125 - Advertising 350,000 200,000 50,000 50,000 50,000 - Cleaning 16,282 3,256 3,908 4,233 4,885 - Repairs & Maintenance 64,272 16,068 16,068 16,068 16,068 - Rent 2,640,508 660,127 660,127 660,127 660,127 - Telephone 14,997 2,997 3,599 3,899 4,499 - Electricity Expense 26,780 5,356 6,427 6,963 8,034 - Luxury Car Tax 12,000 3,000 3,000 3,000 3,000 - Fringe Benefits Tax 28,000 7,000 7,000 7,000 7,000 - Superannuation 187,020 37,404 44,885 48,625 56,106 - Wages & Salaries 2,078,000 415,600 498,720 540,280 623,400 - Payroll Tax 98,705 19,741 23,689 25,663 29,612 - Worker's Compensation 41,560 8,312 9,974 10,806 12,468 Total Expenses 5,841,371 1,449,486 1,398,172 1,447,514 1,546,197 Net Profit (Before Tax) 1,456,261 10,040 353,354 449,870 643,092 Income Tax 436,878 3,012 106,006 134,961 192,923 Net profit 1,019,383 7,028 247,348 314,909 450,169 GST Cash Flow Budget
Image of page 2
Chan Wu Jie BSBFIM601 Manage Finance ICM0737 Cash Flow Analysis -GST 2011/12 Qtr 1 Qtr 2 Qtr 3 Qtr 4 GST Collected 1,697,12 4 339,425 407,310 441,25 2 509,13 7 Less GST Paid 1,281,35 9 282,913 306,854 326,32 5 365,26 7 GST Payable 415,765 56,512 100,456 114,92 7 142,87 0 Aged Debtors Aged Debtors Budget Total Qtr 1 Qtr 2 Qtr 3 Qtr 4 Sales 16,971,2 37 3,394,2 47 4,073,0 97 4,412,5 22 5,091,3 71 % Debtor Sales 20% 20% 20% 20% Total Debtors 100% 678,849 814,619 882,504 1,109,2 74 Current 84% 570,234 684,280 741,304 855,350 30 Days 10% 67,885 81,462 88,250 101,827 60 Days 5% 33,942 40,731 44,125 50,914 90 Days 1% 6,788 8,146 8,825 10,183 Sales Budget Sales 2011/12 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Budget Total Budget 20% 24% 26% 30% Total Sales 16,971,237 3,394,247 4,073,097 4,412,522 5,091,371 Bathroom fitting (30%) 5,091,371 1,018,274 1,221,929 1,323,756 1,527,411 Bedroom fitting (25%) 4,242,809 848,562 1,018,274 1,103,130 1,272,843 Mirrors (15%) 2,545,686 509,137 610,965 661,878 763,706 Decorative Items (10%) 1,697,124 339,425 407,310 441,252 502,137 Lighting Fixtures (20%) 3,394,247 678,849 814,619 882,504 1,018,274
Image of page 3
Chan Wu Jie BSBFIM601 Manage Finance ICM0737 Budget Notes:- 1) Identifications of reasons for previous profits and losses. The profits made from previous years were $590,254, $731,188, $851,188 and $1,019,499 from 2007/08 until 2010/11 accordingly. One of the main reasons for an increase in profits is due to the growing number of customer bases. In addition to this, the business’s positive growth can also be attributed on the fact that the business is built on superior after-sales services. This has definitely been one of key reasons in retaining its customer by ensuring that the customers are treated correctly. The profits earned could also be due to effective and efficient financial management approaches that currently exists in the company. Reasons for losses includes running an inefficient accounting information system that does not adequately provide sufficient analysis of revenue and expenditure and has made it difficult to make informed estimates of future profits. Their lack of computer software has resulted in the production of reports that does not contain sufficient details and also not on time. Losses could also be due to ‘gut feeling’ estimates done by the experience traders. Such estimates should be done via quantitative analysis to produce the most accurate results so that the senior management can make better informed decisions.
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 10 pages?

  • Spring '14

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors