Tutorial Exercise: Financial Budget | My Assignment Tutor

Assessment II & III: Tutorial Exercise: Financial BudgetDue Date: 31 May 2021Value: 30%Length: Approximately 3 hoursInstructionsStyle & FormatTutorial Exercise must be word-processed, not hand written, word size 12 with ‘Times NewRoman’ font type and 1.5 spacing. Table and graphs should be accurately formatted and one mustshow all related workings. (HINT: Follow the Marking criteria as it is how your answer willbe marked)Please list any references (books, articles, web-based material) you use at the end of yourassignment in alphabetical order, using the referencing style seen in academic articles (i.e. withintext references and bibliography, as in the Harvard referencing style). The Tutorial Exercise mustcontain the following:-a. Cover Page (Moodle)b. Table of Contentc. Body/Content (answers to the assessment tasks)d. ReferenceSubmissionTutorial Exercise should be uploaded on to the Moodle before the due date. Document should beuploaded in Microsoft Word Format or excel Format. Softcopy must have accurate file name;it must have the student ID number and assessment it corresponds to. For example, if your studentID is s11065736; your filename must be “s11065736_TutorialExercise”.NOTE: The table and solution should not be in Picture Format. If the solution contains PictureFormat Tables for solution, straight 10 marks will be deducted or ZERO will be awarded.Late Assignment submission will not be marked unless prior arrangement has been made with theCourse Coordinator. If late assessment is marked then the penalty of 10% per day applies.Assignment submitted after solution has been uploaded will neither be accepted nor marked.QuestionsPart A: Budgeted Cash Flow StatementThe following budgeted bank account is given for Sports Equipment Store: BANKDateParticularsAmountDateParticularsAmount01-07-21Balance b/f$4,000.0030-06-22Operating Expense$30,000.0030-06-22Cash Sale$75,000.00Plant (Purchases)$20,000.00Euro Finance Ltd$20,000.00Drawing – Bennett$25,000.00Motor Vehicle (Sale)$2,000.00Cash Purchases$55,000.00Interest Received$500.00Accounts Payable$4,000.00Accounts Receivable$50,000.00Balance c/d$17,500.00$151,500.00$151,500.00 Required:Prepare budgeted Statement of Cash Flow of Sports Equipment Store for the year ended30 June 2022Part B: Income Statement and Balance SheetRoyal Galarza’s Asset and Liabilities as at June 30 are outlined in the post-closing trial balancebelow: DebitCreditCash at Bank$3,500.00Inventory (at cost)$3,500.00Accounts Receivable$3,800.00Plant & Equipment$7,800.00Accumulated Depreciation: Plant &Equipment$780.00Motor Vehicles$25,000.00Accumulated Depreciation: Motor Vehicles$3,750.00Land & Buildings$250,000.00Accrued Expenses Payable$540.00Bank Loan$61,650.00Capital: Royal Galarza$226,880.00$293,600.00$293,600.00  Royal Galarza estimates that her sales for the next three months will be as follows: JulyAugustSeptember$40500$65800$70850 Selling price is firmly established a cost plus 80% Markup, with 80% of sales on credit. Actual and estimated inventory balances are as follows: June 30 (actual)$3,500July 31 (estimated)$4,000August 31 (estimated)$5,500September (estimated)$8,000  All purchases are made for cash and take advantage of 2.5% trade discount. Some Cash Expenses are: Marketing8% of SalesGeneral & Administration6.5% of Sales Other Expenses: At 1 July, accrued motor vehicle running expenses payable amounted to $540. Theseexpenses are $200 plus 2% of sales and are paid in the following month. At the end ofthe quarter, September’s motor vehicle running expenses will be accrued. Motor Vehicles are depreciated at 10% per annum and Plant & Equipment at 10% perannum using diminishing value method. Financial Expenses: Interest payable is $1,541.25 per quarter. Additionally, 2% of creditsales are expected to be bad.Laura forecasts that the following will occur during the quarter ending September 30: Laura estimates that she will collect all of the accounts receivable at 30/06, and 80% of thecollectible Accounts Receivable arising from the quarter’s sales. Paid Bank Loan of $15,000 Laura will deposit additional capital of $30,000 during the period.Required (Ignoring VAT for this question)(a) Prepare a Budgeted Income Statement for the quarter ended 30 September, based on theinformation provided, clearly showing all component of Cost of Goods Sold.(b) Prepare a Budgeted Balance Sheet as at 30 September. Marking Criteria for Assessment III & IV (30%)CriteriaWeightingMarks gainedFinancialBudgetBudgeted Statement of Cash Flow20Prepare a Budgeted Income Statement for thequarter ended 30 September15All working provided: Journal if needed. Required budget to get missinginformation Ledger accounts to get ending balance Trial Balance25Prepare a Budgeted Balance Sheet as at 30September15FormattingDocument should be well organized andaccurately formatted (correct headings, dollarsigns, structure, etc.)5TOTAL80 Marks

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