Project

mY calculations are correct but you need to include the annual or total figures for all items. The readers will want to know the budgeted end result HAVE ATTATCHED WORKINGS BELOW.

Scenario

You work as an accountant at XYZcom, a company that manufactures and sells various products. As part of your responsibilities, you have been tasked with preparing the operational budget for the next financial year. To accomplish this, you will use the Profit and Loss Statement from the previous year as a basis for your calculations.

HINTS

This task is best performed using spreadsheet software. Please copy thetemplate XYZ.com Profit and Loss Statement 1 July 20XX to 30 June 20XX+2into a spreadsheet.

Then, use theProfit and Loss Statement for the period 1st July 20XX to 30 June 20XX+1as a guide to complete the template.

Remember to refer the assumptions (below) to update the figures.

If you need help, see theTutor Assist_Project A.pdf.

Instructions

To prepare the operational budget for the next financial year, follow these assumptions:

1. Cartage and freight are 10% of income.
2. Cost of sales is 20% of income.
3. You only employ casual staff for production and wages per product are 20% of income for that product.
4. Wages on cost (superannuation, payroll tax, Workcover etc) is 15% of production and management salaries.
5. Product 1 will decrease in sales from 1 January by 20%.
6. Product 2 will decrease in sales from 1 January by 10%.
7. Product 3 will increase in sales in sales from 1 July by 30%.
8. Product 4 will increase in sales from 1 January by 50%

Evidence required

Completed Profit and Loss Statement for XYZcom.

Not satisfactory

Trainer feedback

Your calculations are correct but you need to include the annual or total figures for all items. The readers will want to know the budgeted end result

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