Master Budget for Voyager Consultancy

You have been asked by the owner of a new consultancy called Voyager to prepare the master
budget. The consultancy consist of the owner who charges out at $68 per hour and the junior staff
who are charged out at $42 per hour. The owner has advised you that the following hours are
forecasts for each quarter.
The constancy has a credit system of payments with 60% of payment received the quarter in which
they are earned and the remaining 40% earned the following month. The opening accounts
receivable is $13,200 including GST. The GST is accounted for on an accrual basis.
1. Prepare a quarterly revenue receipts forecasts and cash collections forecasts for the next
financial year.
Hours September December March June
Senior 250 230 230 230
Junior 210 220 210 220
Voyager Co
Revenue Receipts Forecast
30-Jun
Hours Receivables
Quarter Junior Senior Total Junior
@42/hr
Senior
@68/hr Total GST Total
GST inc.
September 210 250 460 8,820 17,000 25,820 2,582 28,402
December 220 230 450 9,240 15,640 24,880 2,488 27,368
March 210 230 440 8,820 15,640 24,460 2,446 26,906
June 220 230 450 9,240 15,640 24,880 2,488 27,368
Voyager Co
Cash Collection Forecast
30-Jun
Quarter Receivables September December March June
Opening 13,200 13,200
September 11,361 17,041 11,361
December 10,947 16,421 10,947
March 10,762 16,144 10,762
June 10,947 16,421
Closing 10,947 30,241 27,782 27,091 27,183
*28,402 = September Cash (28,402 X 60%) + December Cash (28,402 X 40%)
2. The owner will purchase a new vehicle in the September quarter for $27,500. In December they
will purchase photocopiers for $5,500 and a computer system for $5,500 with an upgrade in March
for a further $2,750. Each item is inclusive of GST. Prepare the Capital Expense Budget for the
financial year.