Financial Management for the Hotel Industry

M5X01922 - FINANCIAL
MANAGEMENT FOR THE HOTEL
INDUSTRY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................2
(a)Defining and evaluating process of zero based budgeting.....................................................2
(B) Advantage of zero base budget over traditional budget.......................................................3
©Ways in which organization can effectively implement zero based budget............................4
CONCLUSION................................................................................................................................4
REFERENCE..................................................................................................................................................5
Table 1Budget..................................................................................................................................1

INTRODUCTION
Budget is the one of the most important tool that is used by the firms to make business decisions. Detail discussion is carried out
on preparing a budget. Main focus is on zero based budgeting and its advantages relative to traditional budget is discussed in detail. In
the present research study, ways in which zero based budget can be implemented at the workplace is explained and cash budget is also
prepared in the report. In this way, entire research work is carried out.
TASK 1
Table 1Budget
Jan Feb March Apr May June July Aug Sept Oct Nov Dec Total
£ £ £ £ £ £ £ £ £ £ £ £ £
Receipts :
Cash at beginning of year 318,000
Credit sales 79,542 133,923 116,594 114,012 121,326 140,346 154,849 175,309 252,677 230,057 141,422 1,813,425
Sales revenue 229,448 178,931 174,603 171,067 195,360 228,270 240,360 288,450 208,072 240,480 204,540 2,584,629
Interest Received 8,268 8,268 8,268 8,268 8,268 8,268 8,268 8,268 8,268 8,268 8,268 99,216
Overall revenue 317,259 321,122 299,465 293,347 324,954 376,884 403,477 472,027 469,017 478,805 354,230 4,497,270
Payments:
Freehold 10,000
Furniture and fixtures 50,000 50,000 50,000 50,000 50,000 300,000
Real estate 28,000 52,000 109,200 109,200 109,200 109,200 626,000
Washing 18,750 18,750 18,750 18,750 75,000
1