University Financial Planning and Management Report Analysis, 2023

This report analyzes financial planning and professional management, focusing on the case study of NZ Ergonomics Limited. It includes an examination of various budgets, such as sales, cost of sales, expenses, capital expenditure, and cash budgets, culminating in a master budget. The report delves into the company's sales trends, highlighting factors influencing increases and decreases in sales, such as market competition and economic growth. Furthermore, the report provides a comprehensive discussion of cost reduction strategies, offering practical recommendations for NZ Ergonomics Limited to maintain profitability in a competitive market. The report is well-structured, with clear answers to the assignment questions and supporting bibliography.

Running head: FINANCIAL PLANNING AND PROFESSIONAL MANAGEMENT
Financial planning and professional management
Name of the student
Name of the university
Student ID
Author note

1FINANCIAL PLANNING AND PROFESSIONAL MANAGEMENT
Table of Contents
Answer 3.1.................................................................................................................................2
a. Sales budget....................................................................................................................2
b. Cost of sales budget........................................................................................................2
c. Expenses budget..............................................................................................................2
d. Capital expenditure budget.............................................................................................2
e. Cash budget.....................................................................................................................3
f. Master budget..................................................................................................................3
Answer 3.2.................................................................................................................................4
Answer 3.3.................................................................................................................................5
Bibliography...............................................................................................................................6

2FINANCIAL PLANNING AND PROFESSIONAL MANAGEMENT
Answer 3.1
a. Sales budget
b. Cost of sales budget
c. Expenses budget

3FINANCIAL PLANNING AND PROFESSIONAL MANAGEMENT
d. Capital expenditure budget
e. Cash budget
f. Master budget
Budgeted income statement –
Budgeted balance sheet –

4FINANCIAL PLANNING AND PROFESSIONAL MANAGEMENT
Answer 3.2
From the case study of NZ Ergonomics Limited it is recognised that the company is
involved in distributing and selling the ergonomics devices to the computer users. Its most
popular products include the glare glasses for computer monitors, keyboard stands with the
wrist rests, computer trolleys, iPad stands and back rest. Over the last 5 years till 2016 the
company was experiencing rapid growth of 20% each year for all of its services and products.
However, during the last year the company experienced reduction in its sales trend for the
accessory devices. The reason behind the reduction was that the main distributors for the
computer devices started introducing various new products with ergonomics designs like
built in wrist rests and glare screens. However, as per the sales forecast prepared it has been

5FINANCIAL PLANNING AND PROFESSIONAL MANAGEMENT
identified that sales increased during few months of 2019 and reduced during few months of
2019. Various reasons of increase and decrease in sales are mentioned below –
 During the month of October 2018 to January 2019 sales was more as compared to
other months. During this period the digital industry experienced 28% growth due to
economic growth in the country. It led to higher demand for ergonomic devices for
the users of the computers and enhanced the sales of NZ Ergonomics Limited as well
 Sales in the beginning of the budget period was lower as the competitors were
providing improved product that led to decline in sales
 Sales further decreased in the last quarter that is during February 2019 to May 2019 as
the competitors were able to further improve their product. Further, NZ Ergonomics
Limited’s product cost was same all over the year whereas the competitors were
offering 5% discount on their product.
Answer 3.3
As the sales have been declined due to strong competition in the market NZ
Ergonomics Limited is required to reduce its cost by 10% for maintaining the profit level.
Various ways of reducing the cost are mentioned below –
 As the company is in business for some years now it may plan to lower the
advertising costs
 Training costs shall be reduced through employing those persons who already have
past experience of working in this industry
 Various quotations shall be taken from different suppliers and the supplier with lower
price quotation shall be given the order for stock purchases.

6FINANCIAL PLANNING AND PROFESSIONAL MANAGEMENT
Bibliography
Anikina, I. D., Gukova, A. V., Golodova, A. A., & Chekalkina, A. A. (2016). Methodological
Aspects of Prioritization of Financial Tools for Stimulation of Innovative Activities.
European Research Studies, 19(2), 100.
Arnold, M., & Artz, M. (2018). The use of a single budget or separate budgets for planning
and performance evaluation. Accounting, Organizations and Society.
Beale, H., Financial, O., House, H., & Spa, L. (2016). BUDGET.
Dudin, M., Prokofev, M., Fedorova, I., Frygin, A., & Kucuri, G. (2015). International
Practice of Generation of the National Budget Income on the Basis of the Generally
Accepted Financial Reporting Standards (IFRS).