MANAGE FINANCE WITHIN A BUDGET | My Assignment Tutor

MANAGE FINANCE WITHIN A BUDGET Prepare Total 3 Reports Report 1 Information given below (page7) Use Table 1&2 (ignore drafted budget) Refer page number 36 & 37 from student version file pdf(ignore table in that) Report 2 Information given below (page 11) Use Table 3 Refer page number 45 from student version file pdf(ignore table in that) Report 3 Information given below (page 12) Refer page number 46 from student version file pdf Keep tabel in Landscape and Report in Portrait For better view of table please refer provided excel file if required Screen shot aattached in mail as an example of completed work THANKYOU 🙂 Drafted Profit & Loss Budget for 1st Oct 2019 to 31st Dec 2019DetailsOctoberNovemberDecemberTotalFood Sales$66,674$71,467$72,866$211,006Beverage Sales$55,640$56,264$58,200$170,104Function Sales$82,187$87,937$88,857$258,980Total Revenue$204,501$215,667$219,923$640,090Operating ExpensesFood Cost$37,026$37,702$38,567$113,295Beverage Cost$16,964$17,653$18,987$53,603Marketing$2,500$3,470$4,520$10,490Rent$18,000$18,000$18,000$54,000Telephones$500$500$500$1,500Miscellaneous$1,500$1,500$1,500$4,500Utilities$3,000$3,000$3,000$9,000Wages – Base Salary$71,749$71,986$71,963$215,697Superannuation 10% of wages$7,175$7,199$7,196$21,570Total Operating Expenses$158,413$161,009$164,233$483,656Net Profit or Loss$46,087$54,658$55,690$156,435% of Budgeted Revenue22.54%25.34%25.32%24.44% Revised Budget Profit & Loss Budget for 1st Oct 2019 to 31st Dec 2019DetailsOctoberNovemberDecemberTotalFood Sales$70,733$72,797$73,986$217,516Beverage Sales$55,640$56,264$58,200$170,104Function Sales$82,187$88,167$88,857$259,210Total Revenue$208,560$217,227$221,043$646,830Operating ExpensesFood Cost$37,026$37,702$38,567$113,295Beverage Cost$16,964$17,653$18,987$53,603Marketing$2,500$3,470$4,520$10,490Rent$18,000$18,000$18,000$54,000Telephones$500$500$500$1,500Miscellaneous$1,500$1,500$1,500$4,500Utilities$3,000$3,000$3,000$9,000Wages – Base Salary$71,749$71,986$71,963$215,697Superannuation 10% of wages$7,175$7,199$7,196$21,570Total Operating Expenses$158,413$161,009$164,233$483,656Net Profit or Loss$50,147$56,218$56,810$163,174% of Budgeted Revenue24.04%25.88%25.70%25.23% October Budget P & L Statement for October 2019DetailsBudgetActualVariance $Variance %Food Sales$70,733$78,610$7,87710.02%Beverage Sales$55,640$61,440$5,8009.44%Function Sales$82,187$97,500$15,31315.71%Total Revenue$208,560$237,550$28,99012.20%Operating ExpensesFood Cost$37,026$47,623($10,597)-22.25%Beverage Cost$16,964$24,982($8,018)-32.10%Marketing$2,500$1,300$1,20092.31%Rent$18,000$18,000$00.00%Telephones$500$440$6013.64%Miscellaneous$1,500$1,399$1017.22%Utilities$3,000$3,561($561)-15.75%Wages – Base Salary$71,749$74,160($2,411)-3.25%Superannuation$7,175$7,416($241)-3.25%Total Operating Expenses$158,413$178,881$20,46811.44%Net Profit or Loss$50,147$58,669$8,52214.53%% of Budgeted Revenue REPORT ReportIntroductionFavorable AspectsDiscuss 3 x variances compare and contrast themNon-Favorable AspectsDiscuss 3 x variances compare and contrast themRecommendationInclude the 2 points from Point 4 on page 37Make sure you are not only providing recommendation for non-favorable, provide few recommendations for favorable aspects as well This has to be done to figure out percentage change for CONTRAST This calculation only need to be done for 3 x favorable and 3 x non favorable items Step 1 Actual sale – Last Quarter Average = x Step 2 x / actual sale = y Step 3 y x 100 = Percentage Change Eg. As per the analysis of the business financial performance, this can be evident that the actual food sales increased by 5.86% from its budget and it was 15.1% better then its last quarter average Hint: Compare: Oct Actual VS Oct Budget Contrast: Oct Actual VS Last Quarter Average (This is done by me for but finished completed you can use this same numbers to make completed report ) I have prepared report to discuss the performance of the first month of the quarter and further in this report I will also discuss the appropriate options for more effective management. As per the analysis the actual food sales has increased by 10% from its budget and it was 15.1% better than its last quarter average. As per the analysis the actual beverage sales has increased by 9.44% from its budget and it was 15.36% better than its last quarter average. As the analysis the actual functions sales has increased by 15.70% from its budget and it was 21% better than its last quarter average. As per the analysis the actual food cost has increased by 22.25% from its budget and it was 22.2% better than its last quarter average. As per the analysis the actual beverage cost has increased by 32.09% from its budget and it was 33.28% better than its last quarter average. As the analysis the actual labour cost has increased by 3.25% from its budget and its was 3.36% better than its last quarter average 3. November and December Budget P & L Statement for November 2019 & December 2019DetailsNovemberDecemberBudgetActualVariance $Variance %BudgetActualVariance $Variance %Food Sales$72,797$78,563$5,7667.34%$73,986$73,984($2)0.00%Beverage Sales$56,264$58,621$2,3574.02%$58,200$54,996($3,204)-5.83%Function Sales$88,167$98,565$10,39810.55%$88,857$76,536($12,321)-16.10%Total Revenue$217,227$235,749$18,5227.86%$221,043$205,516($15,527)-7.55%Operating ExpensesFood Cost$37,702$44,225($6,523)-14.75%$38,567$39,815($1,248)-3.13%Beverage Cost$17,653$21,656($4,003)-18.49%$18,987$16,458$2,52915.36%Marketing$3,470$1,140$2,330204.39%$4,520$980$3,540361.22%Rent$18,000$18,000$00.00%$18,000$18,000$00.00%Telephones$500$411$8921.65%$500$489$112.25%Miscellaneous$1,500$1,120$38033.93%$1,500$1,365$1359.89%Utilities$3,000$3,800($800)-21.05%$3,000$3,715($715)-19.25%Wages – Base Salary$71,986$74,822($2,836)-3.79%$71,963$72,984($1,021)-1.40%Superannuation$7,199$7,482($283)-3.79%$7,196$7,298($102)-1.39%Total Operating Expenses$161,009$165,174$4,1652.52%$164,233$161,104($3,129)-1.94%Net Profit or Loss$56,218$70,575$14,35720.34%$56,810$44,412($12,398)-27.91%% of Budgeted Revenue . ReportIntroductionOctober Recommendation Eg: After the month of October it was recommended that negotiating with suppliers on pricing and credit term can bring the high food cost down. Now this is evident after analysing the Nov and Dec results that food cost has progressively plunged down from -22% to -12 % in Nov and down to -2% in December. December end variation Hint: Just compare Dec Actuals to Dec Budget Discuss 3 x favorable variancesDiscuss 3 x non-favorable variancesReasons for continuous budget variations (chose any 3)forecasting –Marketing –Staff trainingEconomic conditionCompetitor’sAreas of Improvement Hint: What all areas you will discuss in point D will be your areas of improvement.Include points for recommendations as the report will finish here. Budget Management ReportIntroduction (case specific) General DiscussionBudget Management (definition/explanation) Budget Management Approaches (definition) Reducing cost Adv/Dis-adv Impacts – Customers/colleagues Reducing Staff/Changing Rosters Adv/Dis-adv Impacts – Customers/colleagues Reviewing Operating Procedures Adv/Dis-adv Impacts – Customers/colleagues Importance of Budget Monitoring Recommendations (case specific)

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