HOTS Assignment #2 -Budgeting (1)

Imagine the marketing team has an annual budget for 2022 of $500k. Using the table below, create a tracker in excel that communicates to the marketing team, as of the end of Q2 2022, how their actual spend compares to that which has been budgeted. Make up numbers for Q2 2022, and also make up a few examples of commentary that might explain or give context to the spend that is left and/or has been exceeded. Item Annual budget Revisionist History $ 50,000 The Happiness Lab $ 50,000 Deep Cover $ 50,000 Cautionary Tales $ 40,000 Bad Women $ 25,000 A Slight Change of Plans $ 40,000 The Bomber Mafia $ 65,000 Web development $ 100,000 Marketing tech $ 30,000 Social campaign management $ 50,000 total $ 500,000

Given the information below, answer questions 1-3. • Assume you are working on budgeting for the room department of your hotel. • Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2019. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year. • Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $246,000 during 2019. For 2020, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2019. • Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2019. For 2020, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.   1. What will be the budgeted ‘Room Revenue (Sales)’ for 2020 ($)?  Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer.  Type your answer as a whole number (e.g., 200000).

Explain why budgeting is important? You have been asked to prepare sales budget and production budget for 2023. The following information is available from the records: Quarter 1 Quarter 2 Quarter 3. Quarter 4. Total This Year 2022 2,000 2,500 3,000 3,500 11,000 Next year 2023- 4,000 5,000 6,000 7,000 22,000 The selling price in 2022 was 90 and it will be 100 RM in 2023. The production manager also plans that there will be no ending inventory at the end of any quarter.

1. Identify the specific type of budget • Long-range Annual Achievement that would best address each of the following questions a full-service hotel manager would like to answer. (a) (b) (c) (d) (e) (h) (i) (j) Question How much will we spend for front desk agents next Tuesday night? What will be our labor costs in the third quarter of next year? What will be my rooms renovation costs in four years when all guest room furniture must be replaced? What is our best estimate of next year's rooms revenue? How much sales tax will we collect next week? What will be the amount of our guest room supplies purchases next year? How many guest rooms will we sell next year? How many guest rooms will we sell next week? What will be the cost of replacing the hotel's HVAC (heating/ventilation and air conditioning) system five years from now? What is our best estimate of next year's food and beverage revenue? Type of Budget

Imagine that you run a nationwide chain of pizza stores in multiple states. Now it is the end of 2023, and you start preparing various budgets for 2024.   List what information you need to gather and what assumptions you must make in order to prepare various budgets.   Is there a specific order of the budgets prepared?   Which budgets are most important in your opinion? Explain why.

Please help solve all question Mega Empire Bhd. is in the inital stages of preparing the annual budget for next year. Danial, has recently joined the company as management accountant and is interested to learn as much as possible about the company’s budgeting process. After the recent meeting with the Sales Manager who is Zack and Aaron as the Production Manager, Danial initiated the following conversation Danial: Since I am new around here and I am going to be involved with the preparation of the annual budget. I’d be interested to learn how the two of you estimate sales and production numbers. Zack: We start out very methodically by looking at recent history, discussing what we know about current accounts, potential customers, and the general state of consumer spending. Then we add the usual dose of intuition to come up with the best forecast we can. Aaron: I usually take the sales projections as a basis for my projections. Of course we have to make estimate of what this year’s…

7. The company plans to spend ZMW 10,000 on marketing and advertising in January 2023 and a further ZMW5, 000 in the same area in March 2023. 8. Administration overheads are budgeted at ZMW500 per month: 60% is paid in the month of usage and the balance one month later. 9. Fixed assets will be depreciated at 25% per annum of the initial investment capital. Required: i) Prepare the Cash Budget by month for the first quarter of 2016. Identify and comment on those areas of the cash budget that you wish to draw to the attention of management and recommend action to be taken.

how would you calculate this  Another team member who is preparing the budgeted balance sheet for the business for the same quarter ending September 30, 2022, has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? if yes what should these amounts be?

QUESTION ONE Zambeka limited is a modern company that offers customised products to its clients. The company has received some seed fund (cash) that will be used as equity capital amounting to ZMW150, 000 on January 1 2023. You have just been engaged by the company to prepare a cash budget for the first three months of the 2023 using the information given below: The Budgeted sales for the first quarter of 2023 are expected to be ZMW240, 000. Since the company will be launching the same year, sales are expected to gradually pick as product awareness increases. It is assumed that 15% of the first quarter sales will be in January, 30% in February and the remainder in March. If these projections hold it is anticipated that annual sales in 2023 will be ZMW1, 000,000. Clients must pay a deposit of 5% of the price when the order is made. Payments of 45% and 50% of the order price will be paid in month one and month two following the month of sale. The company does not plan for any defaulting…

Assume that you are starting your own coffee shop. You will need to develop budgeted income statement and balance sheet for the next three years. Your goal is to apply the budget concepts and formulate strategies for operational sustainability. Task: Model Financial Statement Budgets for a Coffee Shop a. Income statement budget model for 3 years. b. Balance sheet budget model for 3 years. Hints (USE $ as currency + make it a low budget business + see the attached tables as refrernce to the kind of required tables)

Please help with question B and C: B.) Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter ending September 30, 2022, has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? If yes, what should these amounts be? C.) Upon receipt of the budget, the team manager, Dannie Bruce, has now informed you that, in keeping with industry players, the management of Sallat Household Furnishings have indicated an industry requirement to maintain a minimum cash balance of $155,000 each month. He has also noted that management is very keen on keeping the gearing ratio of the business as low as possible and would therefore prefer to cushion any gaps internally using equity financing.Based on the budget prepared, will the business be achieving this desired industry target? Suggest three (3) internal strategies that may be employed by management to improve…

Based on the information below, create a monthly budget. Once the budget is established, estimate how much you would be able to save monthly. Identify three money wasters that you might keep you from sticking to your budget. What would the impact of those money wasters be on your ability to save? Budget Scenario You have recently graduated with a degree in marketing and started a job that pays $50,000 per year. Your monthly net income is $3,000. You have decided to move into a one-bedroom apartment in Saint Paul. Since you work within walking distance, you won’t need to own a car. You don’t want to be lonely in your new place, so you decided to adopt a pet. You let your friends talk you into joining the YMCA since it is now close to your new place. You have one credit card for emergencies, but you did use it to buy some new furniture for your apartment. You need to create a budget that you can stick to, because you are saving your money to take a trip to Europe in three years.…

As a manager responsible for an operating budget, you will usually be expected to compare your department's actual expenses to your budgeted expenses as well as to its performance in prior periods. True FalseMy nephew has promised to repay a loan by making $1,200.00 payments in April of each of the next 5 years. Using the Present Value Table found in Appendix 13-A on page 141, and assuming an interest rate of 5%, what is the value of these payments?

As a manager responsible for an operating budget, you will usually be expected to compare your department's actual expenses to your budgeted expenses as well as to its performance in prior periods. True FalseMy nephew has promised to repay a loan by making $1,200.00 payments in April of each of the next 5 years. Using the Present Value Table found in Appendix 13-A on page 141, and assuming an interest rate of 5%, what is the value of these payments? a. $3,917.04 b. $4,329.40 c. $5,195.28 d.

Why is it important to prepare a financial budget? Explain what is meant by the term "time value of money". For example, why might it be better to receive $8 today, over receiving a promise of $9 seven years from now? How should one consider the time value of money when planning for retirement?  Please share examples within your response.

3. What will be the budgeted ‘Salaries’ expenses for 2020 ($)? Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer.  Type your answer as a whole number (e.g., 200000).     • Assume you are working on budgeting for the room department of your hotel. • Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2019. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year. • Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $246,000 during 2019. For 2020, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2019. • Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2019. For 2020, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.

I have a finance team at work. As the year progresses, they need to maintain a record of cash flow and expenditure. What will they be required to do as a first step to building a budget? Question 1Select one: A. Find out the balance sheet of the company B. Find the profit and loss for the previous year C. Identify the expenditure and demand along with the cash flow of the company D. Build an income and expenditure statement Incorrect

Budget Excel Project – Bloomfield Co. Bloomfield is an ice cream company, who makes homestyle ice creams using fresh and all-natural ingredients and sells to retail stores. In preparing the budget for the coming year, 2024, they forecasted the following expected sales and gathered the costs data from managers in various areas of the company. Sales Forecasted to sell 25,000 units in the 1st Quarter of 2024, and an additional 2,000 units each quarter. The 2,000 additional units per quarter are expected to continue through the end of 2nd quarter of 2025. The 2023 4th quarter sales were 24,000 units. Selling price for one unit of ice cream is $15. Bloomfield maintains 15% of the next quarter’s unit sales in ending inventory. All sales to retail stores are on account, with collections of 75% made in the quarter of sales and 25% collected in the quarter after sale. Accounts receivable on December 31, 2023 is $72,000.   Direct Materials Direct materials cost $3 per pound. 1.5 pounds of…

Prepare schedules for cash receipts and cash payments, and determine the ending balances for the relevant balance sheet accounts. E10.30 (LO 4, 5) Service Environmental Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has been collected: 1. Clients usually pay 50% of their fee in the month when the service is provided, 40% the next month, and 10% in the second month after receiving the service. 2. Actual service revenues for 2021 and expected service revenues for 2022 are as follows: November 2021, $90,000; December 2021, $70,000; January 2022, $110,000; February 2022, $120,000; and March 2022, $130,000. 3. The company pays for purchases of landscaping supplies (direct materials) 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $14,000; January 2022, $13,000; February…

Help please Pelican Merchandising & More is a family-owned store. The business is now approaching theend of the year and is in the process of identifying its cash needs for the first quarter of the newyear. You are the management accountant of the entity and have been tasked to prepare the cashbudget for the business for the quarter ending March 31, 2022.(i) Extracts from the sales and purchases budgets are as follows Month 2021-2022 Cash sales Sales on account Cash purchases Purchases on account November 2021 138,100 480,000   345,000 December 2021 156,500 600,000 25,800 380,000 January 2022 170,975 650,000 44,625 400,000 February 2022 135,740 700,000 30,400 480,000 March 2022 226,420 800,000 55,100 540,000 (ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 4/30, n90:55% in the month of sale35% in the first month following the sale8% in the…

ONLY ANSWER QUESTION (B) AS I HAVE ANSWER FOR (A) ALREADY SALLAT Household Furnishings & Appliances is a family-owned business. You are themanagement accountant of the entity and have been given the task of preparing the cash budgetfor the business for the quarter ending September 30, 2022. Your data collection has yielded thefollowing:i) Extracts from the sales and purchases budgets are as follows:Month           CashSales           SalesOn Account         CashPurchases                 PurchasesOn AccountMay              $75,000                  $480,000                                                                    $390,000June             $135,000                $600,000                       $36,000                                 $360,000July              $86,800                  $720,000                       $61,700                                 $450,000August          $105,600               $640,000                       $68,800…

arrow_forward   Question .(iii) To help achieve the budgeted sales for the year, Sampson is about to introduce bonuses for itssales staff. The bonuses will be an increasing percentage of the gross sales made, by eachsalesperson, above certain monthly targets.(iv) The company is using a new general ledger software package. The financial controller is impressedwith the new system, because management accounts are easily produced and allow detailedcomparisons with budgets and prior-period figures across product lines and geographical areas.The conversion to the new system occurred with a minimum of fuss. As it is a popular computerpackage, it required only minor modifications.(v) As part of the conversion, the position of systems administrator was created. This position isresponsible for all systems maintenance, including data backups and modifications. These taskswere the responsibility of the accountant.Required:For each of the scenarios above, explain how the components of…

When gathering financial information, the entrepreneur should develop a budget that includes expected sales and expense figures for the first year. True or false

A4) Create a budget on a spreadsheet supposing you earn $45,000 a year