Renovation Business Assignment Help
Renovation Business Assignment Help . Jason and Marie are new clients who have recently set up their own home renovation business which they have called J& M Home Improvements Pty Ltd.
They want you to provide ongoing accounting/bookkeeping services to them but they are concerned that they have not yet prepared a budget for their proposed business. In order to assist them you ask them for forecast of revenue and expenses for the first year of operation. The data you are provided with is as follows:
Rent for workshop: $ 3,000
Contractors (carpenters, electricians, plumbers, etc.): $18,000
Motor Vehicle – petrol-parking registration etc.): $ 300
Advertising: $ 1,500
Postage, printing & stationery: $ 200
Insurance: $ 275
Utilities: $ 50
Telephone: $ 175
They anticipate that revenue will be $15,000 in their first month of operations and this will grow at the rate of 10% each month. Please round all numbers to whole dollars.
- For this simulation exercise, you are required to prepare a budget using Excel.
Include the following:
- the name of the business
- month name for each of 12 columns
- forecast revenue each month
- forecast expenses each month
- Profit or loss each month (ignore GST and tax for this exercise)
- Accumulated profit or loss each month
- Create a pie graph for the year to show each type of expense as a proportion of the total expenses. Insert this graph on the same page as the data.
- Prepare a column graph which includes both revenue each month and total expenses each month. (Tip: you may find it helpful to have the sales revenue row listed first, by month, followed by the total expenses, by month, on the row beneath). Insert this graph of total revenue and total expense on the same page as the data.
- In which month is J & M Home Improvements Pty Ltd expected to break even?
- Change the rate of growth for revenue to 12% and state what is the month in which breakeven is achieved.
- Include a title for each graph (google this if you are unsure).
- Include a legend for each graph (google this if you are unsure).
Gymkids commenced business in January. They specialize in the supply of sporting equipment for primary schools. The sales forecast, expected debtors payment schedule, forecast purchases and expected credit payment schedule details are as follows:
|Forecast Credit Sales|
|Payment History of Debtors|
|When Debtors Pay:||How much is paid:|
|Within the month of sale||50%|
|In the month after sale||25%|
|In the second month after sale||25%|
Renovation Business Assignment Help
|Forecast Credit Purchases|
|Month 1||Month 2||Month 3|
|Payment History to Creditors|
|When Gymkids Pay Creditors:||How much is paid:|
|Within the month of purchase||60%|
|In the month after purchase||30%|
|In the second month after purchase||10%|
Question 1 – Using the table below, fill in the Debtors (Accounts Receivable) Budget.
|Credit sales|| |
|Cash from Jan sales||9 000||4 500||4 500|
|Cash from Feb sales|
|Cash from Mar sales|
|Cash from Apr sales|
|Cash from May sales|
|Cash from Jun sales|
|Total receipts from debtors|
Question 2 – Using the table below, fill in the Creditors (Accounts Payable) Budget.
|Credit Purchases|| |
|Cash from Jan purchases||12,600||6, 300||2 100|
|Cash from Feb purchases|
|Cash from Mar purchases|
|Cash from Apr purchases|
|Cash from May purchases|
|Cash from Jun purchases|
|Total payments to creditors|
Shane Robinson is the supervisor of a university canteen with a monthly wages budget of $4,000. She receives a budget control report that tells her that the expenditure in her canteen for January, February and March has been $4,500 for each month.
Here are the reasons for overspending.
- January: extra staff employed to cover sickness.
- February: staff overtime to meet rearranged schedules during the university examination period
- March: implementation of a nationally agreed bonus scheme, which was not built into the budget.
Decide whether the adverse variance in each month has been caused by controllable or non-controllable wages costs, and note briefly the reason for your decision.
Controllable Non-controllable Reason
January __________ ____________ _________________________________
February __________ ____________ _________________________________
March __________ ____________ _________________________________
As a manager of an event management company, you are required to complete a cash flow forecast using the template provided. Your cash flow forecast will predict the bank balance at the end of each month for every month of the year. The information you have at your disposal to complete this task is as follows:
- The event management company has on its books four (4) major events to run which will take place in March, May, August, and October.
- The total of $285,000 of ticket sales will be earned in the months that the events are held. The March event will earn $65,000, and the other events in May, August and October will earn $70,000, 85,000 and $65,000 respectively.
- Expenditure on casual salaries, travel and transport, and venue hire will occur only in the months in which the four events take place. These expenditures will be the same for each event.
- Salaries and Office and administration expenses will occur evenly every month.
- The company’s opening bank balance on 1 January is $5,000
- The company will receive a government grant of $50,000 in July.
- The company will make a small income from Merchandising during the months in which the four events are staged. The event in March will earn $1,300 merchandising income, and the other events in May, August and October will earn $1,600, $1,800 and $1,300 respectively.
Complete the Cashflow Forecast Template below to determine the closing balance of cash each month.
|Cashflow Forecast Template|
|Office & Admin Expenses||36,000|
|Travel & Transport||56,000|
At the end of the year, the following actual figures for cashflow together with the forecast figures have been provided to management.
|Forecast||Actual||Variance $||Variance %|
|Office & Admin Expenses||36,000||36000|
|Travel & Transport||56,000||52000|
- Complete the columns for the variance in dollars and percentages for each row.
- Provide an explanation of why the actual cashflow was $9,000 less than what had been