1. The anticipation that the coming financial year (2017/2018) would see sales grow by 20% from...

Transcribed Image Text:

1. The anticipation that the coming financial year (2017/2018) would see sales grow by 20% from the previous year. 2. To budget for an increase in inflation to 4% per annum and that all costs subject to inflation should incorporate this increase. 3. A new car costing $97,466 including GST has been planned for in the coming period to replace the five-year-old vehicle currently used by the chairman. This fuel inefficient car will attract a luxury car tax. - (Luxury car tax will be based on the same amount as previous years plus the inflation rate. 4. Profits are to be built on securing a growing customer base which will generate loyalty sales and become the reference to other customers to the organisation. The superior after-sales service is the key strategy to achieve this. 5. Reduction on the principle of the loan by a payment of $100,000 on the 31 December 2017 from the profits generated by the business. 1. The anticipation that the coming financial year (2017/2018) would see sales grow by 20% from the previous year. 2. To budget for an increase in inflation to 4% per annum and that all costs subject to inflation should incorporate this increase. 3. A new car costing $97,466 including GST has been planned for in the coming period to replace the five-year-old vehicle currently used by the chairman. This fuel inefficient car will attract a luxury car tax. - (Luxury car tax will be based on the same amount as previous years plus the inflation rate. 4. Profits are to be built on securing a growing customer base which will generate loyalty sales and become the reference to other customers to the organisation. The superior after-sales service is the key strategy to achieve this. 5. Reduction on the principle of the loan by a payment of $100,000 on the 31 December 2017 from the profits generated by the business.

Answer rating: 100% (QA)

Analysis of Budget Planning for 20172018 Financial Year The provided information outlines several ke... View the full answer