BSBFIM601 Assessment –1 (1)
Manage budgets and financial plans
Assessment 1 – Part A
Houzit prepares budgets to meet various company objectives. Budgets are prepared:
Sales and profit budget for 2018/19 by department by quarter
Luxury car tax paid in quarter 1
Depreciation cost includes the depreciation of new luxury car and excludes old car that was sold
Sales Growth = (Sales – Previous Year Sales / Previous Year Sales) * 100
Sales Growth = ((15,714,108 – 14,550,100) / 14,550,100) * 100 = 8%
Sales = Previous Year Sales * 1.08 Growth
Rate = 15,714,108 * 1.08
Cost Of Sale = Sales * 56%
= 16,971,237 * 0.56
Gross Profit = Sales – Cost Of Sales
= 16,971,237 – 9,503,892
Gross Profit% = (Gross Profit / Sales) * 100
= (7,467,344 / 16,971,237) * 100
Financial Year: 2017 / 2018
Luxury Car Tax Calculation
Cost-Threshold Cost = 97,466 – 57,466 = 40,000
Exclude GST = 40,000 / 1.1 = 36,363.6
Tax @ 33% = 36,363.64 * 33% = 12,000
Cash Flow Budget per quarter of the GST
A statutory requirement for GST is 10% of the recorded amounts in sales. The only capital purchase planned for the year is the luxury car for the chairman. Those expense payments on which 10% GST was paid include the following:
The GST amount payable each quarter is the difference between the GST collected from sales and the GST paid – format as per policy and procedures.
Luxury car tax paid is exempt from the GST paid
GST Collected = Sales * 10%
GST Paid = Total * 10%
GST paid = GST collected – GST paid
Debtor Ageing Summary at the end of the each quarter
The historical records show that the debtors balance at the end of each quarter is usually about 20% of the quarter’s sales. At any time in the debtors balances 1% of the total debtors is overdue 90 days and over, 5% is 60 days overdue, 10%…...
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