Manage Finance Report: Budget Variance, Debtors Ageing Ratio Analysis

This finance report presents a detailed financial analysis of Houzit Pty Ltd, focusing on the budget variance for the quarter ending September 2015 and an analysis of the debtors ageing ratio. The budget variance analysis compares actual results against the budget, highlighting variances in sales, cost of goods sold, gross profit, and various expenses such as advertising, wages, and interest. The report identifies unfavorable variances in key areas, such as net profit before tax and net profit. The debtors ageing ratio analysis provides a comparative view of trade debtors, sales, and debtor days from 2013/14 to 2015/16, indicating trends in accounts receivable management. The report includes tables summarizing the data and references relevant accounting and finance databases and research papers. This analysis provides valuable insights into the company's financial performance and areas for improvement in financial management.

Running head: MANAGE FINANCE
Manage Finance
Name of the Student:
Name of the University:
Authors Note:

1MANAGE FINANCE
Table of Contents
Budget Variance..............................................................................................................................2
Debtors ageing ratio.........................................................................................................................3
Reference.........................................................................................................................................4

2MANAGE FINANCE
Budget Variance
Houzit Pty Ltd
Variance to Budget
1 Quarter ended September-2015
Actual Results Budget-Qx Actual-Qx $ %
Variance F or U
Variance
Sales $3,394,247.63 $3,371,200.00 -$23,047.63 -1% U
– Cost Of
Goods Sold $1,934,721.05 $1,955,296.00 -$20,574.95 -1% U
Gross Profit $1,459,526.59 $1,415,904.00 -$43,622.59 -3% U
Gross Profit % 43% 42% -1% -2% U
Expenses
– Accounting
Fees $2,500.00 $2,500.00 $0.00 0% F
– Interest
Expense $21,127.00 $28,150.00 -$7,023.00 -33% U
– Bank
Charges $400.00 $380.00 $20.00 5% F
– Depreciation $42,500.00 $42,500.00 $0.00 0% F
– Insurance $3,347.50 $3,348.00 -$0.50 0% F
– Store
Supplies $749.84 $790.00 -$40.16 -5% U
– Advertising $200,000.00 $150,000.00 $50,000.00 25% F
– Cleaning $3,256.45 $3,325.00 -$68.55 -2% U
– Repairs &
Maintenance $16,068.00 $16,150.00 -$82.00 -1% U
– Rent $660,127.00 $660,127.00 $0.00 0% F
– Telephone $2,999.36 $3,100.00 -$100.64 -3% U
– Electricity
Expense $6,695.00 $5,245.00 $1,450.00 22% F
– Luxury Car
Tax $12,000.00 $12,000.00 $0.00 0% U
– Fringe
Benefits Tax $7,000.00 $7,000.00 $0.00 0% F
–
Superannuation $37,404.00 $37,404.00 $0.00 0% F
– Wages &
Salaries $415,600.05 $410,500.00 $5,100.05 1% F

3MANAGE FINANCE
– Payroll Tax $19,741.00 $19,741.00 $0.00 0% F
– Workers’
Compensation $8,312.00 $8,312.00 $0.00 0% F
Total
Expenses $1,459,827.21 $1,410,572.00 $49,255.21 3% F
Net Profit
(Before Tax) -$300.62 $5,333.00 $5,633.62 -1874% U
Income Tax -$90.19 $1,600.00 -$1,690.19 1874% F
Net Profit -$210.44 $3,733.00 $3,943.44 -1874% U
Table 1: Variance Re4port
(Source: Created by Author)
Debtors ageing ratio
Particulars 2013/14 2014/15 2015/16
Trade Debtors 850,000 975,000 1212231.04
Sales 14,550,100 15,714,108 16971236
Debtor Days 21 23 26
Table 2: Debtor Schedule
(Source: Created by Author)

4MANAGE FINANCE
Reference
Franks, J., 2014. LibGuides: Graduate Accounting Empirical Research: Accounting & Finance
Databases.
Unda, L.A., 2015. Board of directors characteristics and credit union financial performance: a
pitch. Accounting & Finance, 55(2), pp.353-360.