Manage Finances - Budget Analysis, Variance Report, Debtor Analysis

Running head: MANAGE FINANCES
Manage Finances
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MANAGE FINANCES
Table of Contents
Variance Report Analysis................................................................................................................3
Debtor Analysis...............................................................................................................................4
Identification of Issues.....................................................................................................................4
Analysis of different Budgets and its Variances..............................................................................5
Performance Analysis......................................................................................................................5
Recommendation.............................................................................................................................6
Reference.........................................................................................................................................7

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MANAGE FINANCES
Variance Report Analysis
Sales and Profit budget $ %
EXPECT Budget Actual Q 1 Variance Q 1 Variance Q 1 F or U
Profit & Loss Acutals 2011/12
Revenue
Sales $3,959,060 3,371,200$ $587,860 14.85% U
-Cost of Goods sold $2,256,664 1,955,296$ $301,368 13.35% F
Gross profit $1,702,396 1,415,904$ $286,492 16.83% U
Calculate(Gross profit %) 43% 42% 1% U
Calculate(Gross profit $) 1,702,396$ 1,415,904$ 286,492$ 16.83% U
Expenses
-Accounting Fees 2,500$ 2,500$ -$ 0.00% F
- interest Expense 21,127$ 28,150$ 7,023-$ -33.24% U
-Bank Charges 400$ 380$ 20$ 5.00% F
- Depreciation 42,500$ 42,500$ -$ 0.00% F
- Insurance 3,348.00$ 3,348$ -$ 0.00% F
-Store Supplies 937$ 790$ 147$ 15.69% F
- Advertising 200,000$ 150,000$ 50,000$ 25.00% F
-Cleaning 3,256$ 3,325$ 69-$ -2.12% U
-Repairs & Mainenance 16,068$ 16,150$ 82-$ -0.51% U
-Rent 660,127$ 660,127$ -$ 0.00% F
-Telephone 2,999$ 3,100$ 101-$ -3.37% U
-Electricity Expense 5,356$ 5,245$ 111$ 2.07% F
-Luxury Car Tax 7,491$ 12,000$ 4,509-$ -60.19% U
-Fringe Benefits Tax 6,500$ 7,000$ 500-$ -7.69% U
- Superannuation 37,404$ 37,404$ -$ 0.00% F
- Wages & Salraries 415,600$ 410,500$ 5,100$ 1.23% F
- Payroll Tax 19,741$ 19,741$ -$ 0.00% F
- Workers' Compensation 8,312$ 8,312$ -$ 0.00% F
Total Expenses 1,453,666$ 1,410,572$ 43,094$ 2.96% F
Net Profit(Before Tax) 248,730$ 5,332$ 243,398$ 97.86% F
Income Tax 74,619$ 1,600$ 73,019$ 97.86% F
Net Profit 174,111$ 3,732$ 170,379$ 97.86% U
Note: F = Favourable, U = Unfavourable
Figure 1: (Table Showing Variance Report)
Source: (Created by Author)