Prepare And Monitor Assignment

Prepare And Monitor
Budget

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
5.1 Calculate the budgeted cost of sales for the year ending 30 June 2016:..........................1
5.2 Prepare a budgeted income statement for the year ending 30 June 2017.........................1
5.3 Reconstruct the Debtors control account to evaluate the estimated balance at 30 June
2016:.......................................................................................................................................2
5.4 Reconstruct the Debtors control account to evaluate the estimated balance at 30 June
2017:.......................................................................................................................................2
6. Direct Labour Budget:........................................................................................................2
7. Sales Budget:......................................................................................................................3
Part A:.....................................................................................................................................3
(a) Scope and Nature of required budgets:.............................................................................3
(b) Identify, access and interpret data and data sources required for budget preparation:.....4
(c) Internal and external factors for potential impact on budget:...........................................4
(d) General control ledgers:....................................................................................................6
(e) Budgeted cash flow statement for Cupcake Heaven for the month ending 31 August 2017:
................................................................................................................................................6
(f) Comment on the likely future cash position of this business:..........................................7
(g) Budgeted profit and loss for the month ending 31 August 2017:.....................................7
(h)Future performance expectations of Cupcake Heaven in related to the expected profit or
loss: ........................................................................................................................................7
Part B......................................................................................................................................8
(a) Prepare a cash budget for Cakes-2-U for the period January - June 2017:.......................8
(b)...........................................................................................................................................9
(c) Budget Explanation and Recommendation:......................................................................9
Part C....................................................................................................................................10
Part 1:....................................................................................................................................10
A. Budget variance report for the quarter ended 30 September 2017:.................................10
B. Predicted cash balance on 30 September:........................................................................10

C. Actual cash balance on 30 September:............................................................................10
PART 2.................................................................................................................................11
D. Major causes of the difference between the budgeted and actual bank balance:............11
C. Appropriateness of Quarterly period for cash budgeting:...............................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
A budget is a financial plan which is prepared by every type of organisation to evaluate
of future activities. It is producing for particular period of time where consist of planned sales
volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.
It is important to prepare and monitor budget activities in efficient manner. The report contains
practical knowledge of preparation of various budgets like cash budget, master budget etc. and
general ledger control accounts (Gupta and Yläoutinen, 2014). This report also evaluates to what
extent internal and external factors affects budgets and discussion on identification, access and
interpret data and its sources required for budget preparation.
TASK
5.1 Calculate the budgeted cost of sales for the year ending 30 June 2016:
As per the income statement of 2015, Sales in 2015 about 1100 units which is sale out at
$200 per unit inc GST. So budgeted cost of sales for the year ending 30 June 2016 -
1100 units * $200 = $220,000
5.2 Prepare a budgeted income statement for the year ending 30 June 2017
Particulars Details 2017 (Amount)
Sales (80% credit) 1265 units @ $525 664125
Cost of sales 1265 units @ $200 253000
Gross Profit 411125
Less: Indirect expenses
Bad Debts 20% of 531300* 106260
Depreciation@15% on
Equipment
18000
Wages (5% increase + $65000)** 164750
Office Expenses 30800
Total Expenses 319810
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