Financial Analysis and Budgeting for Business

This assignment provides a comprehensive analysis of the financial performance of a company. It involves creating various budgets such as sales, cash, profit, and loss as well as variance analyses to compare actual outcomes. The assignment also includes suggestions for implementing changes in the financial software used by the company and compliance with the Corporation Act 2001 to ensure legal operational analysis.

PREPARE BUDGET

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASSESSMENT: 1............................................................................................................................1
PART A...........................................................................................................................................1
Business Concept.........................................................................................................................1
Aim and Objectives.....................................................................................................................1
Strategies......................................................................................................................................2
Sales Budget for 2017/18 by quarter...........................................................................................2
Preparing budgeted profit and loss for 2017/18 quarterly...........................................................3
Preparing the cash flow analysis report with GST measurements..............................................5
Preparing the Budgeted aged Debtor’s summary by quarterly....................................................6
PART B...........................................................................................................................................7
1. Identification and measurement for tax liabilities in libertine restaurant group Pty ltd..........7
2. Determination of current compliance requirements and liabilities for business with the
influences of corporation act 2001..............................................................................................7
3. Reviewing the financial analysis software for Libertine restaurant group Pty ltd..................8
4.Explaining the principles of accounting in developing budgets...............................................8
5. Explaining implications of probity when preparing and revising budgets..............................9
6. Identifying most viable Financial Quarter for Libertine restaurant group Pty Ltd..................9
7. Listing any other items for inclusion in the budget for firm..................................................10
8. Listing internal controls that could improve risk management techniques including
maintenance of audit trails.........................................................................................................10
9. Discussing Australian legislations.........................................................................................11
ASSESMENT: 2............................................................................................................................12
Budget variance report...............................................................................................................12
Budgeted Financial outgoing.....................................................................................................13
Cashflow analysis variance report- 30th September 2017..........................................................13
Aged debtors variance report- 30th September 2017..................................................................14
Budgeted Aged Debtors report:.................................................................................................14
PERFORMANCE..........................................................................................................................14
Financial outgoings KPI’s Actuals – 30th September 2017.......................................................14

RECOMMENDATIONS...............................................................................................................15
EVALUATIONS...........................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
To analyse the cost requirements in the business activities which will be based on
determining the accurate information regarding the past transactional records. The required
amount of fund will help professionals in an organisation to make further planning and
operational increment with helps in achieving the targets at the right time. In the present report,
there will be discussion based on various accounts of Libertine restaurant Pty Ltd. with
references to have effective financial stability. There will be preparation of various budget which
includes cash, sales, profit and loss, debtor ageing etc. along with this there will be variances
analysis among the actual and budgeted outcomes of quarterly observation.
Moreover, these are the key performance indicators which helps in analysing the outcomes
and making appropriate decision for organisational plans and policies. In addition, there will be
various suggestions to the professionals which arereleve4nta with the key legislations and the
future increment in the operational tactics. Implication of various financial software will be
suggested to them as they could have rise in the operational goals.
ASSESSMENT: 1
PART A
Business Concept
Libertine restaurant Pty Ltd has been engaged in operating in restaurant business which is
in approach for increasing the operational efficiency and business performance. there have been
use of various software and techniques in accounting practices and methods for resolving the
business issues. Therefore, there were various consequences have incurred which were affecting
the financial stability in the frim. The mismanagement of operational practices has been based on
centralising the business aspects. Managing the proper records and implication of several plans
and policies which will be helpful in governing the business tasks to bring stability in activities.
Aim and Objectives
Aim: To develop internal accounting and budgeting techniques which will help in
governing financial performance of Libertine restaurant Pty Ltd
Objectives:
 To increase cost efficiency in the business and improving the financial stability.
 To develop strategies for debt control, cost execution, improves equity funding as well as
maximisation of profitability.
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 To administered the current and short-term solvency in the business.
 To manage the schedule and GST in the organisational practices.
Strategies
To improve the business efficiency and suggesting the adequate increment in the
profitability which is required that the professionals must have effective planning. The procedure
for recording the transactions as well as making appropriate analysis over the data base will be
helpful in b bringing the proper ascertainment of activities. Libertine Restaurant Pty Ltd. have
various kinds of costs enrolled in the activities such as advertisement, wages and salaries etc.
which are being analysed for drafting the future budgets. Along with this, professional have been
suggested to implicate changes in the previously existing financial software which are to be
reviewed and reformed to have effective management of operational practices.
It has been estimated by the professionals that there will be rise in the expenses and costs
by the inflation of 4% which have incurred several changes and operational increment tat will be
appropriate and manageable. Along with this, the sales revenue in food and beverage will be
analysed on the basis of quarterly management and ascertainment of operations.
Sales Budget for 2017/18 by quarter
In order to analyse the sales budget for the upcoming period there have been identification
of various practices which will help in analysing the outcomes. Thus, Libertine Restaurant Pty
Ltd. have been developing tactics to estimate the revenue through both the products and services
such as food and beverages over a period.
Qtr 1 Qtr 2 Qtr 3 Qtr 4 2017/2018
Food sales $2,857,277.9
7
$3,095,384.4
6
$3,214,437.7
1 $2,738,224.72 $11,905,324.8
6
Beverage
sales
$1,904,851.9
8
$2,063,589.6
4
$2,142,958.4
7 $1,825,483.15 $7,936,883.24
TOTALS $4,762,129.9
4
$5,158,974.1
1
$5,357,396.1
9 $4,563,707.86 $19,842,208.1
0
Interpretation: On the basis of above listed table and estimation for sales in the upcoming
period on which there have been estimation over the data base. The total sales have been
estimated by the professionals as the last increment in sales from 2015/16 to 2016/17. However,
on the same respect there have been estimation for the sales in period which is amounted to
$11905,324.86 for food and $7936,883.24 for beverages. Therefore, there have been forecasting
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in the various quarters such as in 1st quarter it will be $2857,277.97 for food and $1904,851.98
for beverages. In 2nd quarter the sale of these articles will be 26% of the total revenue which
represent the food will be $3095,384.46 and $2063,589.64 for beverages. In 3rd quarter the sales
of both articles have been analysed as food for $3214,437.71 and beverages as $2142,958.47.
along with this, in last quarter the sales of these services have been analysed as 23% of the total
sales. Thus, food has been analysed as $2738,224.72 and beverages as $1825,483.15.
Preparing budgeted profit and loss for 2017/18 quarterly
In considering the profit and loss analysis for the data base on which it can be said that,
Libertine restaurant Pty Ltd had been planning to improve the financial stability in the business
on which they are making efforts in attaining the business targets. It will be anlsyed on the
quarterly basis to analyse the growth in revenue in each period. Therefore, analysis have been
based on considering the rate of sales in food and beverages. Along with this, there have been
estimation of the amount of costs in each year.
Budgeted - Profit/Loss - 2017/18 - Libertine restaurant group Pty Ltd
For 12 months ended – all sites
Profit & Loss
Actuals 2017/18 1st Quarter 2nd
Quarter
3rd
Quarter 4th Quarter
Revenue 24% 26% 27% 23%
Food Sales $11,905,324.
86
$2,857,277.
97
$3,095,384.
46
$3,214,437.
71
$2,738,224.
72
Beverage sales
$7,936,883.2
4
$1,904,851.
98
$2,063,589.
64
$2,142,958.
47
$1,825,483.
15
Cost of goods
sold
Food Costs $3,162,088.6
0 $758,901.26 $197,314.33 $53,274.87 $12,253.22
Beverage costs $1,461,483.0
4 $350,755.93 $91,196.54 $24,623.07 $5,663.31
Gross Profit $15,218,636.
46
$3,652,472.
75
$4,870,463.
24
$5,279,498.
25
$4,545,791.
34
Expenses
Accounting Fees $10,000.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00
Interest Expense $84,508.00 $21,127.00 $21,127.00 $21,127.00 $21,127.00
Bank Charges $1,600.00 $400.00 $400.00 $400.00 $400.00
Depreciation $170,000.00 $42,500.00 $42,500.00 $42,500.00 $42,500.00
Insurance $13,390.00 $3,347.50 $3,347.50 $3,347.50 $3,347.50
Stationary $15,761.00 $3,782.64 $983.49 $265.54 $61.07
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supplies
Advertising $350,000.00 $200,000.00 $50,000.00 $50,000.00 $50,000.00
Cleaning $3,500.00 $840.00 $218.40 $58.97 $13.56
Repairs &
Maintenance $64,272.00 $16,068.00 $16,068.00 $16,068.00 $16,068.00
Rent $2,640,508.0
0 $633,721.92 $164,767.70 $44,487.28 $10,232.07
Telephone $14,996.80 $3,599.23 $935.80 $252.67 $58.11
Electricity
Expense $105,808.56 $25,394.05 $6,602.45 $1,782.66 $410.01
Gas Expense $53,999.92 $12,959.98 $3,369.60 $909.79 $209.25
Luxury Car Tax $97,466.00 $23,391.84 $6,081.88 $1,642.11 $377.68
Fringe Benefits
Tax $28,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00
Superannuation $523,139.95 $125,553.59 $32,643.93 $8,813.86 $2,027.19
Wages &
Salaries
$5,812,666.0
8
$1,395,039.
86 $362,710.36 $97,931.80 $22,524.31
Payroll Tax $276,101.64 $66,264.39 $17,228.74 $4,651.76 $1,069.90
Workers’
Compensation $116,253.32 $27,900.80 $7,254.21 $1,958.64 $450.49
Total Expenses $10,381,971.
27
$2,611,390.
80 $745,739.06 $305,697.57 $180,376.17
Net Profit
(Before Tax)
$4,836,665.1
9
$1,041,081.
95
$4,124,724.
18
$4,973,800.
68
$4,365,415.
17
Income Tax $1,450,999.5
6 $312,324.58 $1,237,417.
25
$1,492,140.
20
$1,309,624.
55
Net Profit $3,385,665.6
3 $728,757.36 $2,887,306.
92
$3,481,660.
48
$3,055,790.
62
Interpretation: On the basis of above table, there have been estimation of revenue and
expenses of the libertine restaurant Pty Ltd. there have been consideration of a certain percent
rise in the sales volume of the organisation. Along with this, it is also comprised on determining
the quarterly sales of foods and beverages. In first quarter there will be 24% of sales estimated
from the total sales, 26% from 2nd quarter, 27% from 3rd quarter and 23% from 4th quarter. The
total gross profit of the year 2017/18 have been estimated as $15218,636.46 which is comprised
of quarterly estimation and analysis of the data base. Thus, in 1st quarter the gross profit is
$3652,472.75, in 2nd quarter it is $4870,463.24, in 3rd quarter it is $5279,498.25 and in 4th quarter
it is $4545,791.34.
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Additionally, there have been ascertainment of costs and expenses in the operational
activities which are being determined by implicating several techniques. the fixed costs have
been categorised in a manner that it will equally charged in each quarter. Therefore, to estimate
the variable costs for the upcoming period on which there have been use of sales revenue
percentage. Moreover, there have been several charges based on taxation which are have to be
bare by the organisation. The corporate tax of 30% have been analysed and charges as per having
appropriate ascertainment of data base.
As per analysing the profitability of the organisation ion which it has been estimated by the
professionals that 3385,665.63 as the total profit retained by the business which determines the
NP margin as 17%. Therefore, to categorise the profitability on the quarterly basis on which the
net profit has been generated by the professionals as 728,757.36 which is 15%, in 2nd quarter it is
2887,306.92 which is 56%, in 3rd quarter it is 3481,660.48 that is 65% and in 4th quarter it will be
3055790.62 which is 67%. However, as per analysing such outcomes on which it can be said that
the last quarter will be profitable to the industry in terms of having appropriate outcomes.
Preparing the cash flow analysis report with GST measurements
In analysing the taxes have been paid by Libertine restaurant Pty Ltd on which there have
been ascertainment and analysis of the data base on the periodical basis. There will be estimation
based on analysing the total GST collected, paid and payable by the Libertine Restaurant Pty
Ltd.
CASH
FLOW
ANALYSIS –
GST
2017/18 Qtr 1 Qtr 2 Qtr 3 Qtr 4
GST Collected $476,212.99 $114,291.12 $123,815.38 $128,577.51 $109,528.99
Less GST
Paid $137,564.86 $33,015.57 $35,766.86 $37,142.51 $31,639.92
GST Payable $338,648.13 $81,275.55 $88,048.51 $91,435.00 $77,889.07
Interpretation: On the basis of above listed table, the cash flow for GST collection and
payment in each period have been analysed as per having appropriate ascertainment of data base.
GST have been collected by the business which is amounted to $476,212.99 for the period
2017/18. Thus, it will be divided in each quarter as the percentage of sales for such quarters. In
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1st qtr the GST collected was $114291,.12, in 2nd qtr it was $123,815.38, in 3rd qtr it was
$128,577.51 and in 4th qtr it was $109,528.99.
GST have been paid by the organisation in 2017/18 $137,564.86. Thus, in 1st quarter it was
$33015.57, in 2nd quarter it had been analysed as $35,766.86, in 3rd quarter it will be $37142.51
and in 4th quarter it will be around $31639.92. Therefore, the GST for the period have been
payable by the professionals as $338,648.13 that is in 1st quarter it will be around $81275.55, in
2nd quarter it will be around $88,048.51, in 3rd quarter it will be around $91435.00 and in last
quarter it will be $77889.07.
Preparing the Budgeted aged Debtor’s summary by quarterly
In accordance with the operational practices and tactics of business in analysing the costs
which have been impacted in determining the gains. The accounts receivable gaining is the
report which brings appropriate information among the professionals which is relevant with
ascertaining the information regarding the time utilise to recover the debtors. Thus, in
accordance with determining the invoices which are overdue and the amount payment which is
yet to be recovered. On the other side, it also defined the efficiency of the firm and professionals
in collecting such overdue payments in the required deadline.
AGED
DEBTORS
BUDGET
2017/18
TOTAL Qtr 1 Qtr 2 Qtr 3 Qtr 4
Sales $4,762,129.94 $4,762,129.9
4
$5,158,974.1
1
$5,357,396.1
9
$4,563,707.8
6
% Debtors
Sales 1.00% 1.00% 1.00% 1.00% 1.00%
Total
Debtors $47,621.30 $47,621.30 $51,589.74 $53,573.96 $45,637.08
Current $40,001.89 $40,001.89 $43,335.38 $45,002.13 $38,335.15
30 Days $4,762.13 $4,762.13 $5,158.97 $5,357.40 $4,563.71
60 Days $2,381.06 $2,381.06 $2,579.49 $2,678.70 $2,281.85
90 Days $476.21 $476.21 $515.90 $535.74 $456.37
Interpretation: In accordance with the above listed table on which it can be said that, the
sale over the period was $4762,129.94 is been analysed annually. In 1st quarter the sales revenue
has been analysed as $4762,1229.94, in 2nd quarter it is 5158,974.11, in 3rd quarter it was
$5357,396.19 and in 4th quarter it was $4563,707.86. Thus, it has been estimated by the
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professionals that, the total debtors over the period will be 1% of the revenue therefore, it has
been forecasted by the professionals in respect with the same percentage. In 1st quarter the sales
revenue has been analysed as $47621.30, in 2nd quarter it is 51589.74, in 3rd quarter it was
$53573.96 and in 4th quarter it was $45637.08.
Moreover, the period of 30 days, 60 days and 90 days have been measured on the basis of
proportionate analysis. The 1% of charges have been estimated for the 90 days of the total debts,
5% for the 60 days of period and 10% for the 30 days of period. Therefore, it can be said that the
debtor has to be recorded in less than 30 days of time as it will help in bringing the more funds
than compared to other periods.
PART B
1. Identification and measurement for tax liabilities in libertine restaurant group Pty ltd
As per analysing the tax consequences of the Libertine restaurant group Pty Ltd on which
there have been determination of various analysis and taxation have been measured through
which the firm has to make payment.
CASH
FLOW
ANALYSIS –
GST
2017/18 Qtr 1 Qtr 2 Qtr 3 Qtr 4
GST Collected $476,212.99 $114,291.12 $123,815.38 $128,577.51 $109,528.99
Less GST
Paid $137,564.86 $33,015.57 $35,766.86 $37,142.51 $31,639.92
GST Payable $338,648.13 $81,275.55 $88,048.51 $91,435.00 $77,889.07
Interpretation: On the basis of above listed table, the cash flow for GST collection and
payment in each period have been analysed as per having appropriate ascertainment of data base.
GST have been collected by the business which is amounted to $476,212.99 for the period
2017/18. Thus, it will be divided in each quarter as the percentage of sales for such quarters. In
1st qtr the GST collected was $114291,.12, in 2nd qtr it was $123,815.38, in 3rd qtr it was
$128,577.51 and in 4th qtr it was $109,528.99.
GST have been paid by the organisation in 2017/18 $137,564.86. Thus, in 1st quarter it was
$33015.57, in 2nd quarter it had been analysed as $35,766.86, in 3rd quarter it will be $37142.51
and in 4th quarter it will be around $31639.92. Therefore, the GST for the period have been
payable by the professionals as $338,648.13 that is in 1st quarter it will be around $81275.55, in
7

2nd quarter it will be around $88,048.51, in 3rd quarter it will be around $91435.00 and in last
quarter it will be $77889.07.
2. Determination of current compliance requirements and liabilities for business with the
influences of corporation act 2001
To govern the business with the influences of legislative requirement and operations of the firm.
There are various laws and regulation which have been imposed by the Australian government
with an approach towards developing fair trade practices in the economy. Thus, with the
influences of corporate act 2001 there will be analysis over various operational aspects.
However, there have been influences of various rules and guidelines which are imposed by the
federal registrar of legislation which will be helpful in creating the operational encouragement
for business development.
3. Reviewing the financial analysis software for Libertine restaurant group Pty ltd
As per reviewing the previously existed financial analyses software on which financial
information have been gathered and analysed to have adequate outcomes. The point of sales
system has been used by Libertine restaurant group Pty ltd which have been used to analyze the
financial data. It has facilitated the adequate information on which organization is making
appropriate operational analysis. The accuracy of this software in analyzing the profitability on
the basis of revenue and costs which is not adequate and up-to the expectations.
However, there have been various information which have been generated through such
software which is not being reliable or accurate. Thus, it will be suggested to the professionals
that they must make necessary increment and development of plans which will help them in
analyzing the outcomes. Along with this, it can be said that, there is need to make development
in the plans and policies which will help in governing operations. There are requirements for
making changes in policies and techniques to measure the performance of the business.
therefore, installation of ERP software SPSS etc. will be adequate in demonstrating the
operational gains for the business.
4.Explaining the principles of accounting in developing budgets
Matching Principle: This accounting concept have determined that the transaction which
are recorded in the business have to be summaries in the final accounts. Therefore, the relevancy
of the data will be based on matching the information through invoices or the origin of
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transactions. Along with this this the golden rule of balance sheet is that, there must be matching
amount for total liabilities and total assets.
Account Groups: This concept of accounting has been enacted by GAAP which define
that all the transactions are required to be addressed in several books. Thus, after such recording,
these all are required to be summarized in a summarized account. Thus, the group of accounts
will be helpful in making appropriate analysis over gains of the business.
Time Periods: The disclosure of accounts has to be based on considering the time limit
which insist communicating the performance of business among external parties.
5. Explaining implications of probity when preparing and revising budgets
The financial probity is one of the important aspect in making budgets so as to ethically
follow guidelines and prepare budgets with ease. It can be analysed that firm should be able to
enhance its position by sticking to budget prepared by which it may not get deviate from its
actual performance in effectual manner. The firm should be able to demonstrate to suppliers and
community with regards to procurement studies with high standards of probity and
accountability.
The implications of probity when preparation or revising budgets is that appropriate
checks and balances related to variance if any are analysed for making revision. Concept of
conflict interest is effectively understood and as a result, firm is able to attain clarity regarding
the differences in a better way. Confidentiality of suppliers and related stakeholders are secured
in the best way possible which leads to attainment of reliability in budgeted figures and no
information is overlooked. Moreover, expected behaviours are articulated in a better manner by
which information gets clear in a better manner and budgets are revised by personnels with ease.
Furthermore, when ethics are not conducted while preparation of budgets, it is required
that efficiencies may be implemented so that proper budgets may be revised and implications
may be altered quite effectually. On the other hand, Libertine restaurant group Pty Ltd is
required to conduct accounting as per the financial probity as governed by Australian
government.
6. Identifying most viable Financial Quarter for Libertine restaurant group Pty Ltd
Libertine restaurant group Pty Ltd is able to provide better services in effective manner.
There are two quarters which provides clarity that for 2017/18, it is performing good. From the
analysis of Budgeted Profit and Loss account, it can be analysed that most viable quarter for
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Libertine restaurant group Pty Ltd is 3rd Quarter as gross profit and net profit are increased up to
a high extent in comparison to other 3 quarters. This is evident from the fact that revenue from
food sales and beverage sales are $3,214,437.71, $2,142,958.47 simultaneously which shows that
company is able to enhance its sales in the best manner possible. It can be analysed that COGS
amounts to total of 77897.94 which are adequate. This will give gross profit of $5,279,498.25.
Income from food and beverage sales are adequate which shows that firm will have most
viable quarter. The expenses include Accounting Fees, Interest Expense, Bank Charges,
Depreciation, Insurance, Stationary supplies, Advertising and many others are included which
turns out to be $305,697.57. The profit before charging income tax @ 30 % will be applied and
profit would be $4,973,800.68 and by deducting income tax of $1,492,140.20, net profit of
organisation will be $3,481,660.48. The net profit of similar quarter 1 includes in $728,757.36,
for the quarter 2nd amount will be $2,887,306.92 and for last quarter will be $3,055,790.62. This
shows that firm will be able to attain good quantum of profits in the best way possible.
7. Listing any other items for inclusion in the budget for firm
There are various items which are included in the budget prepared. However, more
expenses could be included such as administrative expense, financial expense, selling
expenditure in order to make certain more assumptions and to accurately prepare financial
budget in the best way possible. In relation to this, administrative expenditures are required in
Libertine restaurant group Pty Ltd as daily administrative work is to be accomplished in a better
manner and thus, expenditures are incurred which provides clarity that business will be able to
incur more administrative expense and can be included in the budget.
Financial expenses are incurred that include interest, fees, commissions which are
incurred on reporting period of organisation. Moreover, it also includes liabilities of firm,
subordinated debt and related financial liabilities for the period in the best manner possible. On
the other hand, selling expense also required to be implemented by firm which includes cost of
promoting and marketing of services of Libertine restaurant group Pty Ltd. Moreover, it includes
cost from advertising campaigns for delivering services to customers. Hence, these type of
expenses or items can be included in the budget of organisation.
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8. Listing internal controls that could improve risk management techniques including
maintenance of audit trails
There are various internal controls that could improve risk management techniques in
firm up to a major extent. These are as follows-
Maintenance of audit trails-
It is termed as a set of records which effectively provides evidence as per the documents
that sequence of activities have been occurred and affected particular event. Maintenance of
audit trials will be fruitful for company in order to enhance accounting systems of company in a
better way. It also involves that firm will be able to track its expenditures and income and thus, it
becomes handy in case of framing investigations and fraud can be attained in a better manner.
Consider impact of disruptive change-
The internal control should be analysed in order to initiate change in the best way
possible. It can be assessed that disruptive change is required so that business may take
technological advancement in effectual way in order to initiate change by which firm may
effectively attain efficiency and could improve risk management techniques up to a major extent.
Analyse sources of risk-
Source of risks are difficult to be analysed and transferring it to risk assessment into
actionable steps are difficult as well. For accomplishing this, root cause of the problem or risk
needs to be assessed by which, firm will be able to overcome risk quite effectually. On the other
hand, by enhancing risks in a better manner, risk management improvement can be initiated with
ease. Thus, firm will be able to attain efficiencies in effective manner and risks could be
mitigated.
9. Discussing Australian legislations
Bilateral or Regional trade agreements
It means Australian government is planning to negotiate trade agreements seeking
substantial reductions in trade barriers. The bilateral trade agreements particularly in aspect of
services and investment trade, it limits or remove discrimination between suppliers. The tariff
preferences if properly used can increase trade flows between partner countries and Libertine
restaurant group Pty Ltd will have to implement then well-defined strategies for overcoming
competition.
International Commercial Terms (INCOTERMS)
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INCOTERMS are universally applicable means of agreeing who will be responsible for
expenditures and risks which are associated with selling of commodities internationally. The
risk in goods passes on to supplier to recipient of it who in turn is responsible for transporting,
insuring and making payment of duties on the goods.
Trade Practices Act
The Trade Practices Act of 1974 provides the way or have an objective to increase
welfare of Australians by effectively promoting fair competition, fair trading and provision for
consumer protection. It means that firm should promote fair business practices so that they may
be able to attain good customer base in effective manner.
Warsaw Convention
It is the convention which is applied in the international treaties which include
unification of majority of rules in relation to international carriage by air. The carrier can agree
in its air waybill to much higher amount as per the contractual agreement but not to lower
amount. It includes market gold value of approach been adopted by Australia in terms of gold
price.
World Trade Organisation determinations
The WTO is an organisation which apply to enhancing international trade. Australian
economy largely relies on strong competitive environment and is committed to WTO leads to
promoting open global trading system in the best possible manner. Trade rules are followed up
to a high extent and disputes are resolved. Moreover, it monitors domestic trade policies of
members and negotiate between trading agreements and rules.
ASSESMENT: 2
Budget variance report
Budget Variance report - 30th September 2017
Libertine restaurant group Pty Ltd
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Profit & Loss Actuals
1st Quarter
actuals
1st Quarter
budgeted
Variance
Variance
%
F or
U
Revenue
Food Sales $2,923,300.65 $2,857,277.97 $66,022.68 2.31% F
Beverage sales $1,694,514.17 $1,904,851.98
-
$210,337.81 -11.04% U
Cost of goods sold
Food Costs $619,490.65 $758,901.26
-
$139,410.62 -18.37% U
Beverage costs $288,483.47 $350,755.93 -$62,272.46 -17.75% U
Gross Profit $3,709,840.71 $3,652,472.75 $57,367.96 1.57% F
Expenses
Accounting Fees $2,500.00 $2,500.00 $0.00 0.00% F
Interest Expense $21,127.00 $21,127.00 $0.00 0.00% F
Bank Charges $400.00 $400.00 $0.00 0.00% F
Depreciation $42,500.00 $42,500.00 $0.00 0.00% F
Insurance $3,858.75 $3,347.50 $511.25 15.27% F
Stationary supplies $998.92 $3,782.64 -$2,783.72 -73.59% U
Advertising $195,287.00 $200,000.00 -$4,713.00 -2.36% U
Cleaning $7,892.65 $840.00 $7,052.65 839.60% F
Repairs & Maintenance $11,431.72 $16,068.00 -$4,636.28 -28.85% U
Rent $660,127.00 $633,721.92 $26,405.08 4.17% F
Telephone $4,028.86 $3,599.23 $429.63 11.94% F
Electricity Expense $28,700.57 $25,394.05 $3,306.52 13.02% F
Gas Expense $13,645.41 $12,959.98 $685.43 5.29% F
Luxury Car Tax $8,041.00 $23,391.84 -$15,350.84 -65.62% U
Fringe Benefits Tax $7,000.00 $7,000.00 $0.00 0.00% U
Superannuation $149,333.85 $125,553.59 $23,780.26 18.94% F
Wages & Salaries $1,659,264.97 $1,395,039.86 $264,225.11 18.94% F
Payroll Tax $78,815.09 $66,264.39 $12,550.69 18.94% F
Workers’ Compensation $33,185.30 $27,900.80 $5,284.50 18.94% F
Total Expenses $2,928,138.08 $2,611,390.80 $316,747.28 12.13% F
Net Profit (Before Tax) $781,702.62 $1,041,081.95
-
$259,379.32 -24.91% U
Income Tax $234,510.79 $312,324.58 -$77,813.80 -24.91% U
Net Profit $547,191.84 $728,757.36
-
$181,565.53 -24.91% U
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Budgeted Financial outgoing
Budgeted Financial Outgoings KPI's - 2017/18
Outgoings 2017/18
TOTAL Qtr 1 Qtr 2 Qtr 3 Qtr 4
Food cost % 26.56% 26.56% 6.37% 1.66% 0.45%
Beverage cost % 18.41% 18.41% 4.42% 1.15% 0.31%
Labour cost % 29.29% 29.29% 7.03% 1.83% 0.49%
Total expenses/Total sales % 52.32% 54.84% 14.46% 5.71% 3.95%
Cashflow analysis variance report- 30th September 2017
Cashflow analysis Variance report - 30th Sep 2017
CASH FLOW ANALYSIS –
GST
1st Quarter
- Budgeted
1st Quarter
- Actuals Variance
Variance
%
F or U
GST Collected $476,212.99 $461,781.48 -$14,431.51 -3.03% U
Less GST Paid $137,564.86 $117,381.80 -$20,183.06 -14.67% U
GST Payable $338,648.13 $344,399.68 $5,751.55 1.70% F
Aged debtors variance report- 30th September 2017
Aged Debtors Variance report 30th Sep 2017
AGED
DEBTORS
BUDGET
Qtr 1 -
Budgeted
Qtr 1
- Actual Variance
Variance
%
F or
U
Sales $4,762,129.94 $4,617,814.82 -$144,315.12 -3.03% U
% Debtors Sales 1% 1.37% $0.00 36.88% F
Total Debtors $47,621.30 $63,210.82 $15,589.52 32.74% F
Current $40,001.89 $48,912.12 $8,910.23 22.27% F
30 Days $4,762.13 $8,701.30 $3,939.17 82.72% F
60 Days $2,381.06 $4,409.00 $2,027.94 85.17% F
90 Days $476.21 $1,188.40 $712.19 149.55% F
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Budgeted Aged Debtors report:
2015/16 2016/17 2017/18
Corporate
Debtors $119,830.00 $187,270.00 $198,422.08
Sales $14,610,330.00 $16,264,105.00 $19,842,208.10
Debtor Days 0.008201731 0.011514313 0.01
PERFORMANCE
Financial outgoings KPI’s Actuals – 30th September 2017
Financial Outgoings KPI's - Actuals - 30th September 2017
Outgoings 1st Qtr Budgeted 1st Qtr Actuals
Food cost % 26.56% 30%
Beverage cost % 18.41% 20%
Labour cost % 29.29% 34%
Total expenses/Total sales % 52.32% 61%
RECOMMENDATIONS
On the basis of above report and ascertainment of the organisational performance on which
it can be said that, there is need to make strategic plan, policies and reforms in technology which
will help in governing the business operations. Thus, it can be recommended to the professionals
of Libertine Restaurant group Pty Ltd that they musty have proper administrative control over
costs and expense.
EVALUATIONS
It has been evaluated that the firm will have gains in the upcoming period as if the
professionals will make appropriate techniques and strategies to over come with the costs
implied in this activity. The profitability of Libertine Restaurant group Pty Ltd is depended on
the level of operations made by professionals.
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CONCLUSION
On the basis of above report, it can be said that, Libertine Restaurant group Pty Ltd have
effective planning and policies to bring financial stability in the firm. There has been use of
various budgets such as sales, cash, profit and loss as well as variance analyses with comparison
to the actual outcomes. Moreover, there have been suggestion to the firm in terms of implicating
the changes in the financial software which have been used by them as well as influences of
corporation act 2001 to represent the operational analysis of the business in a legal manner.
16

REFERENCES
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Schmidt, S. W. and Biniecki, S. M. Y., 2017. THE IMPORTANCE OF BUDGETS IN ADULT
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Online
What are International Commercial Terms (INCOTERMS). 2015 [Online] Available Through:
<https://legalvision.com.au/what-are-international-commercial-terms-incoterms/>
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Trade Practices Act 1974. 2018 [Online] Available
Through:<https://www.legislation.gov.au/Details/C2010C00426>.
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