Queensland Real Estate License Course: Financial Performance Analysis

This report provides a financial analysis of a Queensland real estate license course, examining its income statement, expenses, and overall profitability for the financial year 2014. The analysis breaks down income sources such as commissions, property management fees, and miscellaneous income, highlighting the dominance of commission-based revenue. It then details various expense categories, including salaries, premises expenses, sales and marketing costs, insurance, and business administration expenses. The report points out areas of concern, such as high salary costs and initial high sales and marketing expenses, and notes the low operating profit due to high overall operating expenses. The goal is to provide insights into the financial health of the business and suggest areas for potential improvement to increase revenue and improve the operating profit margin.

QUEENSLAND REL ESTATE LICENCE COURSE
Sales Income:
Property Management Income:
Salaries:
Premises expenses:
Sales and Marketing:
Operating Profit:
Total income is 2,800,610 out of whch the majority of the income comes from the commission wh
Total propety maanement income accounts to $367,322 which comes from two sources such as r
Total amount of salary is $1,577,498 which needs to decrease to increase the revenue of the bus
The total premises expense is $63448 which is not good for an entity in the initial stage.
$200,864 this much highercosts in the beginning stage will not work
The operating profit is very low due to the burden of the overall operating expenses

QUEENSLAND REL ESTATE LICENCE COURSE
INCOME as at end of financial year 2014
COMMISSIONS
Residential Sales 2,028,066
Commercial Sales 176,346
Commercial Lease Fees 29,949
Commercial Management 30,814
Residential Management 336,508
Res Manage Lease/Doc Fees 75,638
Statement Charges 20,422
Total COMMISSIONS 2,697,743
REIMBURSEMENTS
Advertising 81,010
General 1,454
Bank Charges 67
Total REIMBURSEMENTS 82,531
MISCELLANEOUS
Interest Received 6,172
Sundries 14,142
Dividends Received 22
Total MISCELLANEOUS 20,336
Total Income 2,800,610
TOTAL INCOME (Gross Profit) 2,800,610
EXPENSES
SALARIES & EMPLOYEE COSTS
Directors Salaries 56,100
Salespeople Salaries 161,036
Salespeople Commissions 490,708
Commission Only Salespeople 145,582
Holiday Pay & Loading 34,109
Clerical Salaries 268,237
Property Management Salaries 101,931
Secretarial Services 10,730
Superannuation 132,039
Car Allowances 104,960
Telephone Allowance 3,977
Traineeship 5,455
Payroll Tax 47,418
Annual Leave Accrual 15,216
Total SALARIES & EMPLOYEE COSTS 1,577,498
CONJUNCTIONS

QUEENSLAND REL ESTATE LICENCE COURSE
Other agents 11,527
Total CONJUNCTIONS 11,527
PROPERTY MANAGEMENT COSTS
Tenant Expenses 366
Membership Fees 300
Property repairs/maintenance 736
PREMISES
Cleaning 2,138
Electricity 6,662
Mat hire 573
Office furniture & fittings 0
Plant hire 1,480
Rent 43,784
Repairs & Maintenance 7,161
Storage 1,650
Total PREMISIS 63,448
INSURANCE
Business Insurance 7,623
Income Protection 8,196
Professional Indemnity 10,568
Workers Compensation 5,625
Motor Vehicles 719
Directors Insurance 3.207
Total INSURANCE 35,938
SALES MARKETING COSTS
Newspaper Advertising 122,913
Other Media Advertising 26,221
Signs 25,326
Letterbox Drops & Sign Counts 2,601
Photography 3,112
Sales Staff Training & Education 120
Key Cutting 386
Technical Subscriptions 360
Gifts to clients 9,506
Maps & Plans 319
Auction Set up costs 91
Special Promotions 1,104
Motor Vehicle Expenses 4,787
GST not collected 22
Virtual Tours 3,995
Total SALES MARKETING COSTS 200,864
BUSINESS & ADMINISTRATION
Accounting Fees 3,605

QUEENSLAND REL ESTATE LICENCE COURSE
Amortisation 851
Filing Fees 600
Bank Charges 6,902
Seminars 2.181
Business Consulting 27,028
Computer Software Management 7.092
Computer & Printer Maintenance 12,946
Depreciation Expenses 35,878
Donations 3,161
Legal Costs 670
Licences & Subscriptions 4,851
Licence – Homes By Design 75,661
Staff Amenities 5,995
Staff Training 21,162
Meeting Expenses General 2,262
General Office Expenses 8,971
Interest 29,744
Photocopy Costs 3,175
Reimbursements 3,918
Travel Expenses 9,492
Total BUSINESS & ADMINISTRATION 266,145
COMMUNICATION
Telephone & Fax 44,944
Postage 20,182
Internet 11,499
Freight/Courier 4,445
Total COMMUNICATION 81,071
PRINTING & STATIONERY
Printing 23,482
Stationery 13,661
Computer/Printing Consumables 14,523
General Office Supplies 1,317
Total PRINTING & STATIONERY 52,982
INTEREST ON ASSET PURSHASES
Phone System 1.212
Photocopier/ColourPrinterScanner 0
Dells & Magicolour Printer 568
BMW 1,811
Total INTEREST ON ASSET PURCHASES 3,591
TOTAL EXPENSES 2,294,467
OPERATING PROFIT (Net Profit) 506,143