Budgetary Forecasts for Westport Leisure Investments Limited

BUDGETARY
FORECASTS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Cash budget of Westport Leisure Investments Limited ..............................................................1
TASK 2............................................................................................................................................5
Profit budget of Westport Leisure Investments Limited .............................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Budget forecast can be define as the tool of financial management which showcase
quantitative expected estimation of cash inflow and outflow as well as expected monetary
revenue generated from various trade activities. In order to understand the concept of budgetary
forecast in brief manner Westport Leisure Investments Limited has been taken. It is a medium
size business organization which run their business trade in hotel industry and provides various
hotel facilities to their customers in Wales and south-east England. The entity provides various
hospitality services to their customers including food and beverage also provides rental facility .
This report is describe the upcoming forecast cash as well as profit budget of the organization.
Through which manager can understand and analysis activities of generating cash inflow as well
as outflow of given time period. This report also show the profit budget which explain the future
profit estimation of the business entity.
TASK 1
Cash budget of Westport Leisure Investments Limited
Cash budget: It is a measurement technique of financial management which help in
defining the estimated and budgeted cash inflow and outflow estimation of any business entity
for a particular time period generality for a financial year which is started wit January to
December or for many organization it is started with April to march. Cash budget is the
statement of showing the future expected cash related activities of the business organization for
specific time period. The main purpose of preparation of this budget is to identify that whenever
organization has the capacity to run their business organization and able to fulfil their day to day
needs and liabilities as well as requirement of cash for fulling short as well as long term needs of
business organization (Ríos, Guillamón, Benito and Bastida, 2018).
Business organization for preparation of the cash budget use various techniques through which
they are able to formulated their statement of cash budget (DeFranco and Schmidgall, 2020). For
this purpose financial manager use to forecast expected sales revenue from their business
activities as well as they also considered those business activities through which cash outflow
has been generated they considered all the relevant expenses which are necessary for running
business organization (Mukherjee Al Rahahleh and Lane, 2016). It considered all the relent
factors which help in defining the essential cash relevant activities. With the use of business cash
1