Having completed the first activity, you have now been asked to work with a hospitality and catering start-up business that your firm has just taken on as a client. The business is particularly in need of support and guidance with budgeting and how it can be used to inform efficient resource allocation and support effective control and decision-making. The founder of the business is investing 100,000 of their own capital and has also Secured a business loan of 50,000.

You have been provided with raw budget data below which you can manipulate and model appropriately. The cash/bank balance on 1 January is 150,000. Purchases of supplies are estimated to be 3000 paid per month. 25, 000 of equipment is to be paid for in January. Rental costs will be 2000 per month for 9 months and then this will rise to 3000 per month thereafter. 1000 per month of interest is payable on the secured business loan. Marketing costs are estimated to be 1000 per month, sales salaries will be 2000 per month and administrative salaries will be 3000 per month. Cash receipts from customers of 13000 will begin in March and will remain at this level for the rest of the year. A cash dividend of 4000 will be paid in December. You have been asked to prepare a memorandum that includes the following: