FNSORG501: Budgeting and Financial Statement Analysis Report

This report provides a comprehensive analysis of budgeting processes, including the creation of sales budgets, purchase budgets, expense budgets, and cash budgets. It also includes the preparation of budgeted income statements and balance sheets, along with performance reports analyzing variances between actual and flexible budgets. The document addresses the advantages and disadvantages of budgeting, discusses different types of budgets such as plant utilization, production cost, direct material, capital, zero-based, performance, sales, and production budgets. It also answers key knowledge questions related to budgeting practices and their impact on organizational financial management. This student-contributed assignment is available on Desklib, where students can find a variety of study tools and resources.

Running head: BUDGETING
BUDGETING
Name of the Student
Name of the University
Author Note

1BUDGETING
Table of Contents
Acttivity 1........................................................................................................................................3
Task 1...........................................................................................................................................3
Task 2...........................................................................................................................................4
Task 3...........................................................................................................................................5
Task 4...........................................................................................................................................9
Task 5.........................................................................................................................................10
Task 6.........................................................................................................................................12
Activity 2.......................................................................................................................................14
Cash Budget...............................................................................................................................14
Acitivity 3......................................................................................................................................17
Budgeted Income statement.......................................................................................................17
Cash budget...............................................................................................................................20
Budgeted Balance Sheet as on June, 2015.................................................................................22
Activity 4.......................................................................................................................................26
Answer to Question 1................................................................................................................26
Answer to Question 2................................................................................................................27
Answer to Question 3................................................................................................................29
Answer to Question 4................................................................................................................31
References......................................................................................................................................33

2BUDGETING

3BUDGETING
Activity 1
Task 1
Sales Budget
Selling
Units
Selling
Price Total
Sydney 740
$
260.00
$
192,400.00
Melbourn
e 680
$
220.00
$
149,600.00
Brisbane 620
$
200.00
$
124,000.00
Gold
Coast 710
$
190.00
$
134,900.00
Adelaide 550
$
180.00
$
99,000.00
Perth 420
$
170.00
$
71,400.00

4BUDGETING
Total
sales 3720
$
771,300.00
Sales Budget
Selling Units Selling Price Total
Sydney 740 260 =B3*C3
Melbourne 680 220 =B4*C4
Brisbane 620 200 =B5*C5
Gold Coast 710 190 =B6*C6
Adelaide 550 180 =B7*C7
Perth 420 170 =B8*C8
Total sales =SUM(B3:B8) =SUM(D3:D8)
Task 2
Purchase Budget
Purchases Units Purchases Price of each unit Total Purchase
October 6643 28 186000
November 10893 28 305000

5BUDGETING
December 2232 28 62500
Total 19768 84 553500
Purchase Budget
Purchases Units Purchases Price of each unit Total Purchase
October =D13/C13 28 =B7
November =D14/C14 28 =C7
December =D15/C15 28 =D7
Total =SUM(B13:B15) =SUM(C13:C15) =SUM(D13:D15)
Task 3
Particulars Amount
Proposed Sales
$
95,000.00
Fixed Expenses
Manager`s salary $

6BUDGETING
6,000.00
Depreciation of vehicles
$
1,000.00
Depreciation of fixtures and fittings
$
1,500.00
Stationery
$
1,100.00
Rent
$
1,000.00
Interest on Loan
$
2,500.00
General Expenses
$
800.00
Variable Expenses
Advertising
$
2,500.00
Commission
$
1,900.00

7BUDGETING
Cartage
$
950.00
Discount allowed
$
2,375.00
Total
$
21,625.00
Particulars Amount
Proposed Sales 95000
Fixed Expenses
Manager`s salary 6000
Depreciation of vehicles 1000
Depreciation of fixtures and fittings 1500
Stationery 1100
Rent 1000
Interest on Loan 2500
General Expenses 800

8BUDGETING
Variable Expenses
Advertising =600+(B2*0.02)
Commission =0.02*B2
Cartage =0.01*B2
Discount allowed =0.025*B2
Total =SUM(B5:B17)

9BUDGETING
Task 4
Budgeted Income statement
Particulars
Amoun
t
Revenue
Sales 45000
Cost of Goods sold 6000
Gross Profit 39000
Operating Expenses
Marketing 4900
Administration expenses 2500
Finance 1200
Total 8600
Net income 30400

10BUDGETING
Budgeted Income statement
Particulars Amount
Revenue
Sales 45000
Cost of Goods sold =8000+7000-9000
Gross Profit =B4-B5
Operating Expenses
Marketing 4900
Administration expenses 2500
Finance 1200
Total =SUM(B10:B12)
Net income =B7-B13
Task 5
July August
Septembe

11BUDGETING
r
Opening
Inventory
Units 48
Total 720 900 810
Production 4380 5490 7200
Units 292 366 480
Per unit price
Sales 6000 7200 9000
units 400 480 600
per unit 15 15 15
July
August
September
Opening Inventory
Units 48
Total =0.1*C17 =0.1*D17 =0.1*E17
Production =B17- =C17- =D17-