Issues in Financial Management

MANAGE FINANCES

Table of Contents
1. Budgeted income statement for motel.....................................................................................3
2. Recommendations to non-financial users................................................................................3
3...................................................................................................................................................4
a) Financial management issues..................................................................................................4
b)Communicating issue with the management............................................................................4
4. Calculation of gross wage of supervisor per week..................................................................4
5. Investigate the variance...........................................................................................................4
6. Adding of new expenses in the budget....................................................................................5
7. Framing new company policies...............................................................................................5
8 Revised budgeted income statement.........................................................................................5
9...................................................................................................................................................6
a) Current net profit after tax.......................................................................................................6
b) Reducing of actual expenses...................................................................................................6
c) Inclusion of GST and issues of not recording GST.................................................................6
10. Calculation of cost per annum...............................................................................................6
11. Discussion of five items related to the business....................................................................7
12. Budgeting template................................................................................................................7
13. Recommendations of new software.......................................................................................8
REFERENCES................................................................................................................................9

1. Budgeted income statement for motel
Particulars Per day Yearly
Budgeted nights booked 24
Tariff rate 120
Tariff revenues 2880 1051200
Total sales 1051200
Less variable costs
Room servicing labor 20 175200
Room servicing supplies 5 43800
Total variable cost 219000
Contribution 832200
Less fixed costs
Admin/reception salaries 60000
Grounds & maintenance 50000
General manager 85000
Utilities 90000
Depreciation of PPE 140000
Total fixed cost 425000
Net profit before tax 407200
Less estimated tax expense (30%) 122160
Net profit after tax 285040