Assignment On Finance | Finance Table

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Part A...............................................................................................................................................2
Part B...............................................................................................................................................6
Bibliography....................................................................................................................................7

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Part A
The different types of budgets which is followed by the business for ensuring that proper
budgets are prepared by the management of the company. The following information’s that is
given by the company for the analysis is shown below

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The above Budget and the projected financial forecast of 2015 is done on the data of year
the year 2014. The purchase price of the goods has been increased by 5%. The level of customer
satisfaction is getting down. The customers have not been satisfied for some reason this is the
reason why the the sales price has been expected to be decrease by 12%. The owner after
knowing all these things still believes that the price will increase by 8% which has a very less
impact on the sales and perhaps the total sales may be reduce further by 3%. The owner of the

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business has plan to reduce the expenses of the business further by sacking his one employee
who works as a part time in the store. The employee’s salary was $47,000 per annum. Surplus
means the excess amount of the cash receipts over the cash payments. Deficit here means the
excess amount of cash payments over the cash receipts. In the above table the calculation both
budget and actual columns comes surplus.
Big Ed's Whitegoods Ltd
Sales Forecast for the year 2014
Income Oct-14 Nov-14 Dec-14
Items Price No Amount No Amount
N
o Amount
Fridges $ 1,600.00 12 $ 19,200.00 8 $ 12,800.00 16 $ 25,600.00
Freezers $ 800.00 15 $ 12,000.00 10 $ 8,000.00 15 $ 12,000.00
Microwaves $ 470.00 13 $ 6,110.00 6 $ 2,820.00 6 $ 2,820.00
Range hoods $ 190.00 11 $ 2,090.00 15 $ 2,850.00 8 $ 1,520.00
Ovens $ 2,100.00 6 $ 12,600.00 5 $ 10,500.00 8 $ 16,800.00
Cook Tops $ 560.00 16 $ 8,960.00 18 $ 10,080.00 14 $ 7,840.00
Dishwashers $ 990.00 18 $ 17,820.00 18 $ 17,820.00 14 $ 13,860.00
Vacuums $ 390.00 22 $ 8,580.00 26 $ 10,140.00 29 $ 11,310.00
Coffee makers $ 600.00 14 $ 8,400.00 18 $ 10,800.00 26 $ 15,600.00
Toasters $ 99.00 25 $ 2,475.00 13 $ 1,287.00 19 $ 1,881.00
Irons $ 156.00 5 $ 780.00 7 $ 1,092.00 9 $ 1,404.00
Mixers $ 89.00 16 $ 1,424.00 11 $ 979.00 16 $ 1,424.00
Deep Fryers $ 99.00 13 $ 1,287.00 9 $ 891.00 13 $ 1,287.00
Portable A/c's $ 350.00 4 $ 1,400.00 6 $ 2,100.00 8 $ 2,800.00
Hairdryers $ 35.00 0 $ - 2 $ 70.00 1 $ 35.00
Irons $ 45.00 14 $ 630.00 16 $ 720.00 21 $ 945.00
Scale Sets $ 24.00 14 $ 336.00 18 $ 432.00 22 $ 528.00
Kettles $ 78.00 13 $ 1,014.00 14 $ 1,092.00 19 $ 1,482.00
Small Bins $ 40.00 15 $ 600.00 14 $ 560.00 31 $ 1,240.00
Large Bins $ 60.00 7 $ 420.00 17 $ 1,020.00 16 $ 960.00
Wine Coolers $ 299.00 9 $ 2,691.00 10 $ 2,990.00 16 $ 4,784.00
Washing Machines $ 340.00 5 $ 1,700.00 10 $ 3,400.00 15 $ 5,100.00
Dryers $ 330.00 4 $ 1,320.00 4 $ 1,320.00 8 $ 2,640.00
Total Income $ 111,837.00 $ 103,763.00 $ 133,860.00

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Big Ed's Whitegoods Ltd
Expenses estimation for the year 2014
Expenses Oct-14 Nov-14 Dec-14
Items Price
N
o Amount No Amount
N
o Amount
Fridges $ 800.00 10 $ 8,000.00 5 $ 4,000.00 10 $ 8,000.00
Freezers $ 250.00 15 $ 3,750.00 5 $ 1,250.00 10 $ 2,500.00
Microwaves $ 150.00 10 $ 1,500.00 5 $ 750.00 10 $ 1,500.00
Range hoods $ 80.00 10 $ 800.00 10 $ 800.00 15 $ 1,200.00
Ovens $ 900.00 5 $ 4,500.00 5 $ 4,500.00 10 $ 9,000.00
Cook Tops $ 200.00 15 $ 3,000.00 10 $ 2,000.00 15 $ 3,000.00
Dishwashers $ 450.00 15 $ 6,750.00 10 $ 4,500.00 15 $ 6,750.00
Vacuums $ 130.00 20 $ 2,600.00 20 $ 2,600.00 30 $ 3,900.00
Coffee makers $ 250.00 10 $ 2,500.00 10 $ 2,500.00 25 $ 6,250.00
Toasters $ 35.00 20 $ 700.00 10 $ 350.00 20 $ 700.00
Irons $ 78.00 5 $ 390.00 5 $ 390.00 10 $ 780.00
Mixers $ 45.00 15 $ 675.00 10 $ 450.00 18 $ 810.00
Deep Fryers $ 45.00 10 $ 450.00 5 $ 225.00 15 $ 675.00

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Portable A/c's $ 180.00 0 $ - 5 $ 900.00 10 $ 1,800.00
Hairdryers $ 9.00 0 $ - 0 $ - 5 $ 45.00
Irons $ 19.00 10 $ 190.00 15 $ 285.00 25 $ 475.00
Scale Sets $ 12.00 10 $ 120.00 15 $ 180.00 25 $ 300.00
Kettles $ 34.00 10 $ 340.00 10 $ 340.00 20 $ 680.00
Small Bins $ 13.00 10 $ 130.00 10 $ 130.00 30 $ 390.00
Large Bins $ 22.00 5 $ 110.00 5 $ 110.00 15 $ 330.00
Wine Coolers $ 130.00 15 $ 1,950.00 5 $ 650.00 15 $ 1,950.00
Washing Machines $ 220.00 5 $ 1,100.00 0 $ - 10 $ 2,200.00
Dryers $ 210.00 5 $ 1,050.00 0 $ - 10 $ 2,100.00
Total Expenses $ 40,605.00 $ 26,910.00 $ 55,335.00

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Part B
The management of the company needs to take appropriate steps for preparing the
budgets which is prepared by the management of the company. The management would be
responsible for meeting the direction of the business and also ensuring that appropriate planning
is undertaken so that the implementation process of the budget is appropriately followed by the
business. The meeting would be undertaken by the manager and important information would be
discussed in the meeting. The manager would also be responsible for taking major decisions for
the operations of the business. The package which needs to be selected for the business is
Enterprise resource system which would effectively help the management of the company
maintain appropriate financial records and help in the decision-making process of the business.
The directors of the business need to consider the merits and demerits of the package system
which would be used by the business. In addition to this, the other aspects which the director of
the business must consider regarding the information packaging system is the ease of access of
the same and whether the same is user friendly or not.
The accounting package would bring about more efficiency in the operating process of
the business and also help the business to keep a proper track of the income and expenses of the
business. Furthermore, it is anticipated that the new ERP system in the business would also help
the management of the company to generate different kinds of reports but also identify any
mistakes which can have an impact on the financial position of the business. The reasons for
proposal of the ERP System in the business is done due to the accuracy of the software in
managing the financial information of the business.
The financial specialized of the business needs to focus on appropriately preparing the
budgets so that the management of the company is able to keep a track of the income and

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expenses of the business. The revenue and expenses of a business is appropriately represented in
the budgets and the same is generally on estimation basis. The budgeted figures are compared
with the actual estimates of the business in order to identify any discrepancies in the financial
reports which is prepared by the management of the company. It is to be noted that the
management would taking appropriate decisions on the basis variances and results which are
available from comparison between actual and budgeted estimates. The budgeting technique can
be used side by side with standard costing technique which would help the business to identify
the discrepancies in planning and therefore on the basis of the same decision making process
becomes appropriate.

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Bibliography
Alexander, K., 2013. Facilities management: theory and practice. Routledge.
Bell, L., 2018. Management skills in primary schools. Routledge.
Griffin, R.W., 2013. Fundamentals of management. Cengage Learning.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.