Benjamin is working on next year's budget. Given the following information, calculate the budgeted total revenue for his restaurant. Total Revenue last year: Guest count last year: Increase in guest check average: Increase in total guest count: 3% $18,540 $185,400 $203,940 $180,000 7200 $2.50 $163.500
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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- 2019 Sales Cost of Goods Sold Rent Wages Insurance Utilities Auto Maintenance Advertising Other Expenses Total Expenses Net Income Jan 3,250 1,788 525 175 46 220 40 98 2,891 359 Feb 2,700 1,485 525 175 46 225 40 81 2,577 123 Mar 3,855 2,120 525 175 46 285 80 60 116 3,407 448 Tom's Business Income Statement 98 2,900 354 2019 May Jul Aug Sep Oct Nov Dec Total Apr 3,254 3,650 2,850 2,600 2010 2,200 2,250 3,755 4,890 37,264 1,790 2,008 1,106 1,210 1,238 2,065 2,690 20,495 525 525 525 525 525 525 6,300 2,100 175 175 175 175 175 175 46 46 46 46 46 46 550 227 265 210 185 220 230 2,657 40 40 40 80 640 60 147 525 175 46 200 40 110 Jun 588 * º * * * 88 * § 547 1,568 525 175 46 185 80 60 86 3,103 2,724 126 1,430 525 175 46 205 40 78 2,499 101 40 60 2217 (207) 80 60 66 2,372 (172) 68 2,276 (26) 113 3,184 3,952 571 938 240 1,118 34,100 3,164Below are the budgeted revenue and expenses for a restaurant for the year 2022. RM ('000) 71,250 Revenue Sales Expenses RM ('000) 28,500 Cost of supplies Salaries 4,200 Wages Depreciation Repair and Maintenance 17,100 900 3,000 Advertisement 1,500 Laundry Interest on Loan 200 2,200 Miscellaneous expenses 2,300 650 Utilities Below are the additional information given to you for further analysis: The expected pattern of sales for the year 2022 are as follows and it is the company policy to analyse based on quarters. Quarter Percentage of sales 1 24 2 20 3 24 4 32 75% of the sales are on a cash basis and the balance will be received in the next quarter. The costs of supplies vary directly with sales and a constant stock value of supplies are kept. 20% of purchases of the food and drinks are for cash and the balance are paid during next quarter. 80% of the repairs and maintenance item is for a major redecoration to be paid in the third quarter. Wages, which are variable with sales, are…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
- Budgeting for a Service Firm Refer to the AccuTax Inc. example in the chapter. One of thepartners is planning to retire at the end of the year. May Higgins, the sole remaining partner, plansto add a manager at an annual salary of $90,000. She expects the manager to work, on average, 45hours a week for 45 weeks per year. She plans to change the required staff time for each hour spentto complete a tax return to the following:Business ReturnComplex IndividualReturnSimple IndividualReturnPartner 0.3 hour 0.05 hour —Manager 0.2 hour 0.15 hour —Senior consultant 0.5 hour 0.40 hour 0.2 hourConsultant — 0.40 hour 0.8 hourThe manager is salaried and earns no overtime pay. Senior consultants are salaried but receivetime and a half for any overtime worked. The firm plans to keep all the senior consultants and adjustthe number of consultants as needed including employing part-time consultants, who also are paidon an hourly basis. Higgins has also decided to have five supporting staff at $40,000…Part A: Use a spreadsheet to prepare a monthly personal budget to show the available surplus based on the following data. ➤ Monthly salary is QAR 14,600. ➤ Monthly rental expense is QAR 6,650. 19tn3. onidiol ➤ Food expenses are QAR 250 per week. ➤ Electricity is estimated to be QAR 50 per month. ➤ Ooredoo unlimited usage telephone plan is QAR 320 per month. Entertainment is estimated to be QAR 500 per week. ➤Clothing expenses are estimated to be QAR 5,000 per year. Fuel QAR 50 per week. ➤Insurance QAR 2,460 per year. ➤ Vehicle maintenance QAR 2,000 per year. ➤You decide that you must leave a budgeted surplus of QAR 1,000 per month to cover unexpected expenses.Personal Finance Budget - Application • You are a worker in one muti-international company. There are three sources of income (salary, bonus, and other), followed by a list of expenses (rent, food, groceries, restaurants, entertainment, childcare costs, vacations, etc.). And the difference between the two is the person's monthly surplus or deficit. • As a worker, your monthly salary is Php6,000. bonuses are given every April and October in the amount of Php5,000, and Other income earned for the month of January for Php1000. • Your monthly expenses include the following: o Rent - Php1,700 o Food and Groceries - Php800 o Restaurants Expenses - Php1,200 o Entertainment - Php400 o Childcare - Php1,000 o Clothing - Php500, for March, June, September, December o Vacation - Php2,000, scheduled for the months of February and August o Other Expenses - Php1,000 for the months of February, May to December, Php700 for March, and Php2,000 for the month of April. • With the given data, prepare your…
- A small business owner wants to create a budget for the upcoming year. The business has projected sales of $500,000 and wants to achieve a profit margin of 10%. The owner expects to have fixed costs of $200,000 and variable costs of $100,000. Calculate the budgeted net income for the upcoming year.Mungus Coffee has recently recruited you to assist them with the financial aspect of their business. One component of your job is prepare budgets. The Income Statement for last year is presented below and you are required to create a Proforma Income Statement for July 31st 2021 using the fixed variable method. The company expects Sales to increase by 5%. Mungus Coffee Income Statement For the period July 31st 2020 Sales 126,000 Less Cost of Goods Sold 54,000 (variable) Gross Profit 72,000 Less Operating Expenses: Marketing Expense 28,400 (6000 variable and 22,400 fixed) General and Admin. Expense 8,600 (3000 variable and 5,600 fixed) Total Operting Expense 37,000 Operating Income 35,000 Less Interest Expense 1,800 (fixed)…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.…
- lil pront before tax? Problem 2 The manager of the Spartan Land Restaurant is developing the operating budget for next year using the following financial information from the current year: Item Food revenue Beverage revenue Food cost Current Year's Amount $973,000 $112,500 Next Year's Percentage Increase (Decrease) 4% 2% Next Year's Amount ($) EITI Beverage cost Labor (including benefits) Other operating costs Fixed costs 36% 23% $298,000 1% (1%) (2%) 16% same $70,000 same a. What is the current year's budgeted profit (loss)? b. Develop next year's budget indicate the profit (loss). R ProblemPart 2. David works for Woolgarments Company as a production manager. He often participates in the annual budgeting process of the company. David is requested by the Chief Executive Officer Linda to submit his department’s budgeted production for the following year. Linda reviews and typically adds 10 percent to the production budget provided by David. The new amount becomes David’s target production level for the following year. David can receive a cash bonus if his department exceeds the projected production level. Required: a. Explain any incentive that David might have to be dishonest with Linda about the production level he thinks the department can achieve.Click or tap here to enter text.b. Explain the impact David’s inaccurate production estimates could have on other company departments or employees. Click or tap here to enter text.c. Suggest what should be done to prevent a manager from providing inaccurate budgets which can easily achieved.You are hired as a financial manager and your first task is to establish the cash budget of your firm.You gathered the following information. The firm receives all income from sales•Sales estimates (in millions)* Quarter1 = 1,000; Quarter2 = 1,250; Quarter3 = 1,500; Quarter4 = 2,000; Quarter1 next year = 1,200• Accounts receivable* Beginning receivables = $3000* Average collection period = 45 days• Accounts payable* Purchases = 60% of next quarter’s sales* Beginning payables = 1,200* Accounts payable period is 45 days• Other expenses*Wages, taxes, and other expense are 25% of sales*Interest and dividend payments are $100*A major capital expenditure of $500 is expected in the second quarter•The initial cash balance is $100 and the company maintains a minimum balance of $50 1) Required: establish the cash budget of the firm.