Assessment on Manage Finance 2022

Manage Finance
Assessment 3.2

Sales and Profit Budget
 THE ACTUAL SALES HAS BEEN
DECREASED AS COMPARED TO THE
BUDGETED SALES.
 THE SALES IN THE FIRST QUARTER WAS
3% LESS THAN EXPECTED SALES.
 SOME EXPENDITURE INCREASED
BECAUSE OF INFLATION RATE
 STATUTORY REQUIREMENT LED TO
INCREASE IN THE EXPENDITURE.
PROFIT BUDGET 2018/19 Querter 1 Quarter 2 Quarter 3 Quarter 4
Revenue
Sales 18000000 3960000 5400000 3780000 4860000
(Cost of goods sold) 6100000 1342000 1838000 1281000 1647000
Gross profit (A) 11900000 2618000 3562000 2499000 3213000
Expense
Interest expense 82000 20500 20500 20500 20500
Depreciation Expense 160000 35200 48000 33600 43200
Insurance expense 24600 5412 7380 5166 6642
Store suppliers 4300 946 1290 903 1161
Advertisement 272000 59840 81600 57120 73440
Cleaning, Repair & Maintainence 86520 19034 25956 18170 23360
Cleaning & maintainance labour
charge 50400 11088 15120 10584 13608
Rent 3025000 756250 756250 756250 756250
Website marketing expense 17600 3872 5280 3696 4752
Electricity expense 32960 7251 9888 6922 8899
Fringe benefit tax 39900 8778 11970 8379 10773
Wages and salaries 2640000 580800 792000 554400 712800
Superannuation 249660 54924 74898 52430 67408
Worker's compensation 48960 10771 14688 10282 13219
Total Expense (B) 6733900 1574667 1864820 1538401 1756012
Net profit (before tax) (A-B) 5166100 1043332 1697180 960600 1456988
Income tax @30% 1549830 313000 5091564 288180 437096
Net profit 3616270 730332 1188026 672420 1019892

 Gross profit reduced greater in terms of percentage since the
cost of goods sold remained constant.
 Net profit was reduced as a consequences, though there was
decrease in the amount of Interest.
 Sales were targeted at $18000000 which is to achieved in 4
quarters
 First quarter performance was not as expected because of the
recession period during that quarter.