Manage Budget and Financial Plans

Running head: MANAGE BUDGET AND FINANCIAL PLANS
Manage Budget and Financial Plans
Name of the Student:
Name of the University:
Authors Note:

1MANAGE BUDGET AND FINANCIAL PLANS
Contents
Assessment task 1:...........................................................................................................................2
Part 1:...........................................................................................................................................2
Part 2:...........................................................................................................................................3
Part 3:...........................................................................................................................................8
Part 4:...........................................................................................................................................9
Assessment task 2:.........................................................................................................................10
Part 1:.........................................................................................................................................10
Part 2:.........................................................................................................................................12
Part 3:.........................................................................................................................................14
References:....................................................................................................................................17

2MANAGE BUDGET AND FINANCIAL PLANS
Assessment task 1:
Part 1:
Sub part a:
Big Red Bicycle Pty Ltd is an Australian company involved in manufacturing and selling of
bicycle in Australia. Manufacturing and selling of bicycle is the primary activities of the
company to generate revenue for the business of the company.
Sub part b:
The responsibility of the team is to achieve the desired production level by making optimum
utilization of resources and achieve desired level of sales to maximize the amount of profit of the
company (Gitman, Juchau & Flanagan, 2015).
Sub part c:
Cash flow projections:
Cash flow projections is made with the objective to make effective use of cash resources of
company.
Operational plans:
Operational plans are made to effectively operate the business affairs of the company. The
company wants to earn a net profit after tax of $1,000,000 and the operational plan shall be
helpful in achieving the objective of the company (Bryson, 2018).

3MANAGE BUDGET AND FINANCIAL PLANS
Part 2:
Quarterly income statement budget has been selected for the purpose.
Part a:
The purpose of the team budget is to pool together the resources of the company to achieve the
overall objective of the company. Budgets help in communicating the roles and responsibilities
of different employees of the company. Budgets also work as a roadmap for the management.
The company aims troy achieve net profit before tax of $1,000,000 and as can be seen in the
following income statement for the financial year 2016/17 that the company is expected to earn
significantly higher amount of net profit before tax thus, taking appropriate steps would help the
company to achieve its objectives (Dudin, Kucuri, Fedorova, Dzusova & Namitulina, 2015).
Big Red Bicycles Limited for 2016/17
Gross revenue Financial
year
Q1 Q2 Q3 Q4
Sales 3,000,000.
00
750,000.0
0
750,000.0
0
750,000.0
0
750,000.0
0
Less:
Cost of goods sold (400,000.
00)
(100,000.0
0)
(100,000.0
0)
(100,000.0
0)
(100,000.0
0)
Fixed Direct wages (200,000. (50,000.0 (50,000.0 (50,000.0 (50,000.0