Manage Finances Assignment 3 16/Mar/2020 10435 Geonmo Kim Task 1 A. Go to the Spreadsheet Activity 2 Support Material. Collate the totals for the actual 2014/15 and the draft budget 2015/2016 in the tab “comparison”. 1. How do the figures compare overall? - From the comparison table we can clearly compare the gaps of “Turnover” and “Cost” between 2018-19 and 2019-20. We can easily read the information and follow Budget Preparation Principles than preparing a draft budget for the next year. 2. Which areas would need to be investigated? - Any changed between 2018-19 and 2019-20 should be investigated. Have a look for the cost they all dropped down compared with 2018-19 and 2019-20. But our turnover of 2018-19 higher than 2019-20, which means we had a really good plan for 2015-16. We fallowed the plan and did a great job! B. Go to the tab “Draft Budget”, create a copy and move this copy to the end. Rename and label this copy “Future Potential” and manipulate the scenario below: Due to renovations for your 2018/19 budget as outlined in Task 2, the number of available rooms had been limited to 90%. 1. How will your budget for 2019/20 be affected once the number of available rooms will be 100% and the occupancy rate will increase to 84% and the average room rate increases to $185.00 per room and “Other Expenses” increases to 14%? Forecasted 2019/20 Room Budget Forecast $ Forecast % Rooms Available 63875 100% Other Expenses 14% Rooms Occupied 53655 Total Occupancy % 84% Revenue Per Available Room $ 185.00 Total Room Revenue $ 9,926,175.00 In this case, the room price increased and the occupancy rate needs to increase as well, so that we need to give some special or promotion to catch guests attention. In addition, we hope to reduce staff cost because the percentage of staff cost always quit high. Therefore, increase "employees training hours" is necessary. Because we hope that all employees have the same working standard so that customers can feel good and consistent services.
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- Spring '20