Report on Management Budget Forecast

MANAGEMENT BUDGET
FORECAST
ASSESSMENTs ACTIVITY 2

TABLE OF CONTENTS
Task 2.1......................................................................................................................................4
Cash Budget...........................................................................................................................4
Analysis of facts derived from Cash Budget..........................................................................5
Action Plan for upcoming year..............................................................................................6
Task 2.2......................................................................................................................................7
Annual Budgeted Expense for the year 2016.........................................................................7
Expenditure milestones..........................................................................................................9
Type of verifiable data and sources that can provide information to prepare budget and
forecast...................................................................................................................................9
Task 2.3......................................................................................................................................9
Sales Budget for August.........................................................................................................9
Assumptions and parameters for accuracy, relevance and compliance...............................10
Task 2.4....................................................................................................................................11
Budgeted Income Statements...............................................................................................11
Bank Account.......................................................................................................................12
Budgeted Balance Sheet.......................................................................................................12
Task 2.5....................................................................................................................................14
Financial risk and its control for BHP Billiton Group........................................................14
Task 2.6....................................................................................................................................14
Ethics and code of practice related to budget forecast.........................................................14
Importance of ethics.............................................................................................................15
Task 2.7....................................................................................................................................16
Forecasting trends- example................................................................................................16
Graphical representation of XYZ Pty Ltd’ Net profits of 4 years........................................17
XYZ Pty Ltd’s Performance................................................................................................18

Task 2.8....................................................................................................................................18
Key Performing Indicators / Ratios......................................................................................18
Other Key Performing Indicators helpful for forecasting estimates....................................19
Importance of feasibility study to compare projections with market growth and
development.........................................................................................................................21
References................................................................................................................................23

Task 2.1
Cash Budget
Maan Snack Bar
Cash Budget for the month of July, August and September
July
( in $ )
August
( in $ )
September
( in $ )
Opening Bank Balance 10500 1430.6 -6124.978
Cash sales 11000 11500 12000
Receipts 880 920 960
Cash receipts from Account Receivables
Other – Merchandise 300
Total Receipts 11880 12420 13260
Cash available 22380 13850.6 7135.022
Payments 2970 3105 3240
Payment to creditors 2909.4 1800.578 927.55286
Salaries and wages 9335 9335 9335
Interest Payment 1177 1177 1177