Manage Finances

Running head: MANAGE FINANCES
Manage Finances
Name of the Student:
Name of the University:
Author’s Note

1
MANAGE FINANCES
Table of Contents
No table of contents entries found.

2
MANAGE FINANCES
Assessment 2
Part A
Review of the Cash flow Statement
The cash flow statement of the business appropriately shows different revenue and
expenses which is generated by the management of the company during the period. As per the
cash flow statement which is prepared by the management of the company for the year 2014-15,
the management of the company has generated appropriate revenue which is even more than the
budgeted figures in 2014-15. The management has generated more income in terms of
consultation fees which is shown to be $ 1,175,600 which is more than the budgeted figure for
the services which was estimated to be $ 1,100,000. This shows that the management of the
company has provided more of consultation services during the period. Similarly, in 2015-16, the
management of the company has generated appropriate revenue from consultation fees which is
shown to be appropriate. All the other income generating activities has not me the budgeted
figures which was estimated by the management of the company. This shows that there is a
variance between actual performance and budgeted estimates. Due to the variances in revenue
generation in other activities of the business, the management of the company has not been able
to generate appropriate revenue for 2014-15 as well as 2015-16.
In addition to this, the total expenses of the business are also shown to have increased
significantly during the period which is which is a matter of concern for the business. The total
expenses of the business which was budgeted has been exceeded which is a matter of concern for
the management of the company. The main reasons for the variances might be due to increase in
the expenses or the lack of appropriate performance pf the business in terms of other activities of