Budget Forecast: Analyzing Financial Performance and Planning

This assignment presents a detailed budget forecast for a company, analyzing its financial performance over a six-month period. The forecast includes a breakdown of receipts, payments, and net cash flow, highlighting trends in the company's financial health. Task 1 focuses on the cash flow analysis, interpreting the increasing net cash flow from January to June. Task 2 provides a profit and loss statement, examining revenue, expenses, and profit margins. The analysis reveals fluctuating profitability due to varying expenses, emphasizing the importance of expense management for sustained financial success. The document concludes with an evaluation of the company's financial position and recommendations for improved financial planning.

Budget Forecast

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
CONCLUSION................................................................................................................................5

INTRODUCTION
Budget means as the statement that includes expense and income on the basis of the future
objectives, strategies and plans.
TASK 1
Jan
Februar
y March April May June
£ £ £ £ £ £
Receipts :
Collection from Room
Sales
122,62
5 126,925
134,75
0
143,57
5
147,12
5
167,50
0
Food & Beverage 44,500 40,100 43,300 42,600 40,200 36,500
Rent 950 950 950 950 950 950
Commission 25 55 20 15 10 40
Total Receipts
168,10
0 168,030
179,02
0
187,14
0
188,28
5
204,99
0
Payments :
Laundry 6,250 6,250 6,250 6,250 6,250
Printing and stationary 2,000 2,000 2,000 2,000 2,900 2,000
Toileteries 46,000
Salaries 110,000
Wages 11,667 11,667 11,667 11,667 11,667 11,667
Marketing cost 60,000
Payment to suppliers 0 2,000 12,300 2,000 16,400 2,000
Van 28,000
Petrol and diesel 1,000 1,000 1,000 1,000 1,000 1,000
Restaurant Improvements 8,800 22,000
General Maintenance 5,000 5,000 5,000 5,000 5,000 5,000
Lighting & heating 27,500 27,500
Rates 21,668 5,417 5,417
Total payments 19,667 73,917
102,51
7 49,584 48,634
252,83
4

Balance b / f
265,00
0 413,433
507,54
7
584,05
0
721,60
6
861,25
7
Net cash flow in month
148,43
3 94,113 76,503
137,55
6
139,65
1
(47,844
)
Balance c / f
413,43
3 507,547
584,05
0
721,60
6
861,25
7
813,41
3
Interpretation- from the above table it is interpreted that the net cash flow of the company is
constantly on the increasing trend. This is majorly because of the reason that in January the cash
balance carried forward was 413433 and in June the balance was 813413. Thus, from this it can
be seen and evaluated that the cash flow of the company is increasing to a great extent.
TASK 2
Jan Feb Mar Apr May Jun
Room sales 130,500 125,000 140,000 145,500 148,000 178,000
F & B sales 44,500 40,100 43,300 42,600 40,200 36,500
Total sales revenues 175,000 165,100 183,300 188,100 188,200 214,500
Rental Income 950 950 950 950 950 950
Commission Income 25 55 20 15 10 40
Total Revenues 175,975 166,105 184,270 189,065 189,160 215,490
Expenses
In room beverages 2000 2000 2000 2000 2000 2000
Bedding bundles 700
Complimentary items 2000 2000 2000 2000 2000 2000
Laundry 0 6,250 6,250 6,250 6,250 6,250
Printing and stationary 2,000 2,000 2,000 2,000 2,900 2,000
Toileteries 3,833 3,833 3,833 3,833 3,833 3,833
Salaries 18,333 18,333 18,333 18,333 18,333 18,333
Wages 11,667 11,667 11,667 11,667 11,667 11,667
Marketing cost 5000 5000 5000 5000 5000 5000
Petrol and diesel 1,000 1,000 1,000 1,000 1,000 1,000
General Maintenance 5,000 5,000 5,000 5,000 5,000 5,000

Lighting & heating 9166.7 9166.7 9166.7 9166.7 9166.7 9166.7
Rates 5416.7 5416.7 5416.7 5416.7 5416.7 5416.7
Depreciation van 416.7 416.7 416.7 416.7
Depreciation minibus 333.3 333.3 333.3 333.3 333.3 333.3
Total Expenses 65750 72000
73116.6
7
72416.6
7
73316.6
7
72416.6
7
Profit 110,225 94,105 111,153 116,648 115,843 143,073
Interpretation- from the above profit and loss account it is clear that expenses of the company are
many and because of this reason the company profit is not constant. From the above account it
can be seen that the profit for the first month was 110225 but in the next month it decreased to
94105 then it increased. In the month of June the profit increased to 143073. Thus, from this it
can be evaluated and inferred that if the company manages its expenses then they will be able to
manage their profitability.
CONCLUSION