
HI6006 Competitive Strategy Editing Service
Delivery in day(s): 4
Cash | Revenue | Expenditure |
It is defined as the physical form of currency is termed as money such as banknotes and coins. | It is defined as income earned by business with the help of its normal business activities such as sales and many more. | It is defined as payment made in cash or cash equivalent against the purchase of goods and services and it can be evidenced by invoice, receipts or any other documented proof. |
Cash can be generated with the help of cash sales or income received in cash only. | Revenue is the earned formed of income. It is not necessary that earned revenue is received by the organisation. | Expenditure is the spending of the organisation against any purchase or any debts. It is not necessary that every spending is made into cash only. |
For evaluating cash balance cash flow statement is prepared. | For evaluating revenues Income statement. | For evaluating expenditure Income statement. |
High cash balance shows high liquidity of the organisation. Low cash balance shows poor liquidity of the organisation. | High share of revenues helps in getting adequate level of profits. And low share of revenues results into losses. | High share of expenditure results into losses whereas low expenses help in getting profits. |
(Clowes, et. al., 2011)
ABC Co. Budget variance Worksheet 30.6.2015 | |||||
Month | Existing Estimate | Change to | Income (Saving) | Effect on: Expense | Cash flow |
July | 700 | 400 | 300 | 57% | 100 |
Aug | 750 | 450 | 300 | 56% | 150 |
Sept | 800 | 500 | 300 | 62.5% | 200 |
Oct | 900 | 600 | 300 | 66.67% | 300 |
Nov | 950 | 650 | 300 | 68.42% | 350 |
Dec | 800 | 500 | 300 | 62.5% | 200 |
Jan | 800 | 500 | 300 | 62.5% | 200 |
Feb | 800 | 500 | 300 | 62.5% | 200 |
Mar | 800 | 500 | 300 | 62.5% | 200 |
Apr | 800 | 500 | 300 | 62.5% | 200 |
May | 800 | 500 | 300 | 62.5% | 200 |
June | 800 | 500 | 300 | 62.5% | 200 |
Total | 9,700 | 6,100 | 3,600 | 37.11% | 2,500 |
(Clowes, et. al., 2011)
Revenue forecasting is made for the purpose of evaluating the current and future fiscal conditions. With the help of revenue forecasting they forecast the sales and other income and set standards to achieve. The limitations that are available for the revenue forecast are as follows such as: -
There are various other factors that are considered as the limitations for the revenue budgeting such as change in technology, weather events, implementation of new rules and regulations and many more.
In order to encounter these limitations organisation need to get viewpoint from their employees, have to maintain the historical data and get updated related to their competitors.
In order to attain the information from the master budget for the purpose of justifying the following year’s expense budget I would like to compare the budgeted results and the actual results. As the variance helps in making effective analysis over the performance and with the use of this information following year’s budget get justified in effective manner (Clowes, et. al., 2011).
a. After being introduced by the CEO to the three departmental managers you will need to discuss the budget in a simulated workplace scenario with your Trainer & Assessor who will be playing the role or the three managers (marketing, production and logistics) in order to assist you in the formulation of the budget. You will need to ask the necessary questions in order to elicit responses and seek clarification. All recommendations received from the Trainer & Assessor should be well documented so they can assist in the sales forecasts. You will also provide advice on the required financial information that needs to be included in the budget.
The set of questions that get asked from the managers are:
The financial information that needed to be included in the budget is necessary because it helps in making effective forecasting and estimations related to the budget and also helps in setting effective objectives (Rundio & Sigma 2014).
Besides three departmental managers there are few more managers such as sales manager, accountant and suppliers with communication is made for the purpose of sales forecast.
There are various budgets that get prepared with the use of sales budgets are as follows such as production budget, purchase budget and revenue budget. These budgets get prepared with the use of sales budget in an effective manner (Rundio & Sigma 2014).
Process of building master budget is as follows:
Step 1: - Add up all fixed budget costs. It makes inclusion of advertising, salaries, benefits, contribution and supplies.
Step 2: - Add up all variable costs. Items get included under it are factory overhead, production costs and material costs (Rundio & Sigma 2014).
Step 3: Make calculation of cushion for excesses.
Step 4: Add all these available figures
Step 5: Deduct any component if necessary.
The responsible authority is the one who prepare the budget as he (accountant) is the only one who knows the all the positive and negative inputs & output of the prepared budget. Accountant attained detailed information as he makes effective research and analysis over the available information to prepare the budget report. In order to negotiate there are effective standards are set and according to this they need to provide adequate level of information for making negotiations (Rundio & Sigma 2014).
In order to showcase the period of profit milestones they make use of the breakeven point. It is such point where they face no profit – no loss situation. Once they attain the BEP then it is realised that they recover their invested amount and after that they earn adequate level of profits. In order to motivate the employees to meet profit sales milestones they need to provide then non-monetary bonuses as well as profitability based bonuses or sales share bonus or mission bonus. By providing effective bonuses to the employees they make their employees motivated in order to attain the profit sales milestones (Hughes & Kirby, 2014).
The expenditure milestones are set up with the use of the previous year’s expenditure performance. Variance between the last year’s budgeted expenditure and the actual expenditure helps in getting adequate level of information. This information further get utilised for the purpose of setting up expenditure milestones in an organisation (Redburn, et. al., 2015).
ABC Ltd Contribution Income Statement For the year ended 30 June 2015 | ||
Particulars | Total | Per unit |
Sales | $500,000 | $200 |
Less: variable expense | $300,000 | $120 |
Contribution margin | $200,000 | $80 |
Less: fixed expenses | $150,000 |
|
Net income | $50,000 |
|
Break-even point = fixed expense / contribution per unit
Fixed expense = $150,000
Contribution per unit = unit per cost – per unit variable expense
= $200 - $120
Contribution per unit= $80
BEP = $150,000 / 80
BEP= 1,875 units (Redburn, et. al., 2015)
Bank reconciliation process is a necessary process as it helps in identifying the potential errors, fraud or irregularities and helps the organisational management to make proper adjustments in their cash flow statement. Bank reconciliation statement provides external record in context to the company’s cash flows. With the help of bank reconciliation statement management compare their cash flow statement in order to evaluate its accuracy and authenticity. With the help of it the budgeted statement that gets reconciled with bank account is cash budget as it gets prepared for the purpose of preparing policies related to the cash control and monitoring. Bank reconciliation become an important element as it add value to the organisational cash control policies and with the help of it management verify the cash inflows and outflows with the available external source of cash flows (Libby & Lindsay, 2010).
ABC Ltd. Revenue Forecasts 1st Jan 2016- 30th June 2016 | ||||||||
Particulars | Nov | Dec | Jan | Feb | March | Apr | May | June |
Cash | 3,000 | 5,000 | 7,000 | 5,000 | 5,000 | 4,500 | 3,000 | 3,000 |
Total credit | 6,000 | 10,000 | 14,000 | 10,000 | 10,000 | 9,000 | 6,000 | 6,000 |
Credit received | 3,000 | 7,100 | 11,400 | 11,400 | 10,600 | 9,500 | 7,650 | 6,450 |
Total $ | 6,000 | 12,100 | 18,400 | 16,400 | 15,600 | 14,000 | 10,650 | 9,450 |
(Libby & Lindsay, 2010)
The departments within an organisation compete in various ways for allocated funding for their projects such as:
There are effective roles are played by the budgeted statement of financial performance such as:
As there is increase in the motor vehicle expenses it is required to inspect the evidences provided in context to the expenses made related to the motor vehicle. Secondly, it becomes necessary to evaluate the condition of motor vehicle as it becomes old and get over utilised. If these elements are the results than it is proposed to sold it out or replace it with the new motor vehicle. By replacing it with new motor vehicle helps in reducing the unnecessary expenditure made over its maintenance. If some fraudulent activities are found from the side of the users such as fraudulent maintenance bills and others strict action should be taken against the user. It must become an example for others so that none of them can’t so this again in future (Kumar, 2014).
The concept of a budget calendar is easy and simple to use as it helps in setting effective timelines for setting meetings. With the use of this software all the transactions are recorded in such a manner so that every-one can understand easily and perform their activities accordingly (Baker & English, 2013).
Research and development budget and Capital expenditure budgets are two long term budgets.
Research and development budget is such budget that gets prepared for the purpose of investing activities in order to make adequate level of improvements in their existing products and services or make adequate level of development in their products and services. With the help of research and development they made effective level of development. It is different from regular activities and necessarily required for developing their products and services as development require huge research. With the help of it governing bodies monitoring the research and development activities and put corrective actions if something is missing or going wrong way (Cheong, et. al., 2013).
Capital expenditure budget:It is such budget that gets prepared for the purpose of identifying the amount of cash that need to be invested by the organisation in their projects or investment or long term assets. With the help of it they identify the requirement of the capital amount and also get approval of that amount during the budget preparation. These budgets mainly get prepared for the purpose of making investment or purchasing long term assets. With the help of it they make arrangements of required capital well on time from adequate financial sources. Governing bodies utilise this budget for the purpose of evaluating the various sources, profitability of the investment or long term assets. With the use of it they evaluate the available investment option or available projects or long term assets (Cheong, et. al., 2013).
The motor vehicle expense is related to the cash budget as all the expenses made in cash such as petrol, maintenance and other related expenses. Accountant is responsible for the activities related to the cash budget and need to collect all the evidences (Willoughby, 2014).
There are few steps should be taken in context to it such as: -
Budget audit is made in order to determine the level of financial planning, budgeting and forecasting processes and structures that are adequate and effective in order to direct their resources where they needed the most. Budget audit examine various things such as:
With the help of the audit of budget there are few factors that get detected such as fraud or waste. These are two most important factors that get detected with the help of budget audit. Sometimes unnecessary expenses are included in budget in order to hide some balances or safeguard some fraudulent activities or anything else which is unethical as per the business prospective (Bernstein, 2015).
The corrective actions that need to be considered are as follows such as: -
1 (information provided is incomplete)
Staff Name | Total Hrs | Hrly. Rate | Gross Pay | Tax 33% | Net Pay | Total gross pay per staff |
Jan Smith | 40 | $30.00 | $1,200.00 | $396.00 | $804.00 | $1,200.00 |
Pete Black | 40 | $32.00 | $1,280.00 | $422.40 | $857.60 | $1,280.00 |
Alison Jones | 20 | $12.00 | $240.00 | $79.20 | $160.80 | $240.00 |
Andrew Heaps | 40 | $20.00 | $800.00 | $264.00 | $536.00 | $800.00 |
Tom Jacks | 10 | $30.00 | $300.00 | $99.00 | $201.00 | $300.00 |
Zac Spiteri | 40 | $18.00 | $720.00 | $237.60 | $482.40 | $720.00 |
Total |
|
| $4,540.00 | 1498.2 | 3041.8 | $4,540.00 |
(Pan, et. al., 2015)
No. of employees | 6 |
No. of net pays | 6 |
Average Net pay | $757.00 |
Highest net pay | $1,280 |
Lowest Net pay | $240.00 |
Standard deviation | 435.691022 |
(Pan, et. al., 2015)
| Q1 | Q2 | Q3 | Q4 | TOTAL |
ACT | 15005 | 13568 | 11684 | 17985 | 58242 |
NSW | 55896 | 67065 | 60235 | 59648 | 242844 |
NT | 7890 | 3564 | 5540 | 8403 | 25397 |
QLD | 32088 | 28981 | 33457 | 30047 | 124573 |
SA | 20415 | 18465 | 19846 | 17652 | 76378 |
TAS | 18035 | 22350 | 21984 | 21987 | 84356 |
VIC | 48985 | 55657 | 54687 | 56421 | 215750 |
WA | 30156 | 30003 | 27982 | 29856 | 117997 |
TOTAL: | 228470 | 239653 | 235415 | 241999 | 945537 |
(Chen, et. al., 2016)
Agency | Address | Type | Bedrooms | Toilets |
Bennison | 6/1421 High St | unit | 2 | 1 |
HS Hawthorn | 20 Darling Av | house | 4 | 1 |
Jellies’ Craig | 6/3 St Johns Av | unit | 1 | 1 |
Jellies’ Craig | 1/488 Camberwell Rd | unit | 2 | 1 |
Jellies’ Craig | 1/1017 Toorak Rd | townhouse | 3 | 1 |
Jellies’ Craig | 9a Royton St | house | 4 | 3 |
Jellies’ Craig | 1/488 Camberwell Rd | house | 2 | 1 |
Marshall White | 6/6 Karana Pl | unit | 2 | 1 |
Noel Jones Balwyn | 1 Kirkwood Dr | house | 4 | 2 |
Noel Jones Balwyn | 1 Kirkwood Dr | house | 4 | 2 |
Noel Jones Balwyn | 1 Kirkwood Dr | house | 4 | 2 |
RW Balwyn/Kew | 18 Aisbett Av | unit | 2 | 1 |
RW Balwyn/Kew | 18 Aisbett Av | house | 2 | 1 |
Woodard’s Hawthorn | 59 Coolangatta Rd | house | 3 | 1 |
(Jaska, 2014)
Animal Kingdom Pets and Supplies | |||||
Manager List and Store Sales of Live-Stock | |||||
Name | Manager | Mobile | Live-Stock Sales | Store Commission Earned | Other sales |
Chadstone | Stacey | 0469456789 | $1,590.00 | $190.00 | $3,457.37 |
Highpoint | Barry | 0423879654 | $2,876.50 | $143.83 | $4,657.25 |
Southland | Steve | 0452564789 | $1,500.00 | $630.50 | $3,790.49 |
Werribee | Ben | 0455123456 | $515.00 | $170.00 | $5,437.87 |
Greensborou | Helen | 0499879123 | $674.00 | $315.00 | $4,678.78 |
|
| Total | $7,155.50 | $1,449.33 | $22,021.76 |
(Palmer, 2014)
Name | Live-Stock Sales |
Chadstone | $1,590.00 |
Highpoint | $2,876.50 |
Southland | $1,500.00 |
Werribee | $515.00 |
Greensborou | $674.00 |
(Flor & Grell, 2013)
List five potential health and safety hazards that could occur and five ways in which you can improve the overall layout of your area to increase efficiency and decrease hazards.
The five potential health and safety hazards that could occur and ways in which these get improved in order to decrease hazard and increase the level of efficiency such as: -
Risk Factor | Tips to reduce risks |
Repetition |
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Awkward Position |
|
Force/Pressure |
|
Environmental |
|
Visualise |
|
(Cottrell, 2014)
Sales invoice: -
Item | Quantity | List Price | Discount | Your Price | Total |
Mobile covers | 1000 | $9 | $1 | $10 | $10,000 |
Bluetooth | 100 | $90 | $10 | $100 | $10,000 |
Battery | 200 | $72 | $8 | $80 | $16,000 |
Headphones | 200 | $63 | $7 | $70 | $14,000 |
Subtotal | 1500 | $234 | $26 | $260 | $390,000 |
GST | 10% | 10% | 10% | 10% | 10% |
| 150 | 23.4 | 2.6 | 26 | 3,900 |
Amount Due | 1,350 | 210.6 | 23.4 | 234 | 386,100 |
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(Cottrell, 2014)
Please automate where possible and format, print preview and submit your assessment in printable form.
Particulars | 1st option | 2nd option |
Loan Amount | 8000 | 8000 |
Down Payment | 0 | 1885.44 |
Interest @ 4% | 1085.44 | 1085.44 |
Total | 9085.44 | 9085.44 |
Monthly EMI | 252.3733 | 200 |
(Beltran-Royo, et. al., 2013)
Please automate where possible and format, print preview and submit your assessment in printable form.
Particulars | Gengras | Konover | Commons | Total |
T Shirts | 45 | 75 | 0 | 120 |
Stickers | 10 | 10 | 0 | 20 |
Donations | 23.75 | 33.95 | 19.67 | 77.37 |
Total | 78.75 | 118.95 | 19.67 | 217.37 |
Percentage | 36.23% | 54.72% | 9.05% |
|
(Lorain, et. al., 2015)
There are 28 students in a class. 10 are freshmen, 8 sophomores, 4 juniors, and 1 senior. 5 people did not answer the question. Graph this as a pie chart
Types of student | Number of students |
Freshmen | 10 |
Sophomores | 8 |
Juniors | 6 |
Senior | 1 |
Unknown | 5 |
(Lipshits, 2015)
There are 11 men and 17 women – do a pie chart for this.
Gender | Numbers |
Men | 11 |
Women | 17 |
(Lipshits, 2015)
If only 23 of the students did the homework assignment, what percent of the class is that? Create another pie chart.
Particulars | Number |
Homework done | 23 |
Not done | 5 |
(Lipshits, 2015)