You have been asked by the owner of a small consultancy called Voyager to prepare the master budget. The consultancy consists of the senior staff who charges out at $68 per hour plus GST and the junior staff who are charged out at

$42 per hour plus GST. The owner has advised you that the following hours are forecasted for each quarter.

hours

Sep-16

Dec-16

Mar-17

Jun-17

senior

250

230

230

230

junior

210

220

210

220

The consultancy has a credit system of payments with 60% of payment received the quarter in which they are earned and the remaining 40% earned the following month.

The opening accounts receivable is $13,200 including GST. The owner will purchase a new vehicle in the September 2016 quarter for $28,600

In March they will purchase a photocopier for $4,400 and a computer system for $5,500 with an upgrade in June 2017 for a further $2,750. Each item is inclusive of GST.

The following table shows the information about expenses and is based on source documentation from the company’s previous operations. Each item in the table is inclusive of GST.

quarter

Sep-16

Dec-16

Mar-17

Jun-17

motor vehicle expenses

$  1,300.00

$  1,495.00

$     300.00

$     450.00

printing

$     200.00

$       50.00

$     200.00

$       50.00

electricity

$     600.00

$     555.00

$     500.00

$     500.00

rent

$  4,500.00

$  4,500.00

$  4,500.00

$  4,500.00

Depreciation is $700 per quarter and tax payable at 30% of net profit per quarter. Wages for the senior staff are $8,000 per quarter and junior $5,000 per quarter.

The consultancy uses non-cash method (accrual) to account for GST. The opening GST liability is $2,000. The opening cash balance as at 1 July 2016 is $42,000.

The opening balance of provision for income tax (i.e. the net income tax payable for the year 2016) is $5,000 which will be paid in December 2016.

We assume that all the capital expenditures and expenses are paid in the same quarter when they incur. The consultancy is required by ATO to pay PAYG instalment of $250 per quarter.

Suppose that Voyager has non-current assets valued at $55,000 with accumulated depreciation at the beginning of the year of $20,000.

The owner invested $1,000 to the company as share capital when the company was established a few years ago.

There will be no change to the share structure or capital. All the other equity is represented by retained earnings.

Required: Based on the above information, prepare:

1. Revenue Receipts Forecast for the year ended 30 June 2017

2. Cash Collections Forecast for the year ended 30 June 2017

3. Capital Expenditure Budget for the year ended 30 June 2017

4. Expenses Budget for the year ended 30 June 2017

5. GST Budget for the year ended 30 June 2017

6. Budgeted Statement of Financial Performance for the year ended 30 June 2017

7. Budgeted Statement of Cash Flows for the year ended 30 June 2017

8. Budgeted Statement of Financial Position as at 30 June 2017 Round your answer to the nearest whole number.

Answer rating: 100% (QA)

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