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Plan Budget

In: Business and Management

Submitted By gurwinder
Words 322
Pages 2
● Plan financial management approaches
● The change is necessary-
Sales in the first quarter (Q1), second quarter (Q2), and the fourth quarter (Q4) are generally 30% less than Q2.
In starting sales in the first quarter(Q1)second quarter(Q2) and the fourth quarter (Q4) are generally 30% less than Q2.it does not make any sence.so the right answer should be come first quarter (Q1)second quarter (Q2)and the fourth quarter (Q4)are generally 30% less than Q3.
.In Q2 alteration is to be made in repair and maintainance,so repair and maintenance budget for Q2 is needed 90%.so the repair and maintenance budget is 11250 which was 12500 earlier.

Master budget with profit projections.
Big Red Bicycle Pty Ltd
Master Budget FY 2011/2012 FY Q1 Q2 Q3 Q4
REVENUE
Commissions (2% sales) 60,000 15,000 15,000 15,000 15,000 Direct wages fixed 200,000 50,000 50,000 50,000 50,000 Sales 3,000,000 750,000 750,000 750,000 750,000 Cost of Goods Sold 400,000 100,000 100,000 100,000 100,000
Gross Profit 2,340,000 585,000 585,000 585,000 585,000
EXPENSES
General & Administrative Expenses Accounting fees 20,000 5,000 5,000 5,000 5,000 Legal fees 5,000 1,250 1,250 1,250 1,250 Bank charges 600 150 150 150 150 Office supplies 5,000 1,250 1,250 1,250 1,250 Postage & printing 400 100 100 100 100 Dues & subscriptions 500 125 125 125 125 Telephone 10,000 2,500 2,500 2,500 2,500 Repairs & maintenance 50,000 12,500 12,500 12,500 12,500 Payroll tax 25,000 6,250 6,250 6,250 6,250
Marketing Expenses Advertising 200,000 50,000 50,000 50,000 50,000
Employment Expenses Superannuation 45,000 11,250 11,250 11,250 11,250

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