BSB61218 Advanced Diploma of Program
Purpose of this Assessment task
This assessment task is designed to test your skills in managing finance as required by the unit BSBFIM601 Manage finances. Your trainer/assessor will be assessing your work and provide you with constructive feedback on Canvas. This task will assess your skills to:
• Create opportunities to maximise innovation within a team
• Organise and agree effective ways of working
• Support and guide colleagues
• Reflect on how the team is working.
In this assessment you will analyse the provided case provided, undertake research in the topics presented and prepare a report to demonstrate your skills and provide report to your Trainer. By successfully completing this Case Study you will provide the required performance evidence of your competence in managing finances.
What are you required to do to undertake this Case Study?
You should carefully read the provided Case Study; its additional documents provided on Canvas and undertake all questions. The task includes: (i) Analysing the case (ii) Undertaking required research (iii) Role playing and (iv) Reporting.
To successfully undertake this assessment, you should be doing the following:
• Read the provided Case Study couple of times and understand its requirements
• Clarify the requirements with your trainer and assessor, if you are not sure
• Research appropriate websites as directed by your trainer/assessor
• Self-reflect before you write your answers and upload them on Canvas
• Discuss with your trainer/assessor the contents of the report you will be presenting
Context and conditions of undertaking the tasks?
The prescribed tasks will be undertaken by you after carefully analysing the case scenarios. Your trainer/assessor will provide you a context to role-play the scenario. Your trainer will also provide you guidance on the websites to be researched. Your trainer/assessor may also set certain conditions under which you will perform the tasks required by this assessment. For example, your trainer may set a time limit to perform a task or, ask you to repeat a task or, ask you to give additional information about the performance by asking you some verbal questions or, they may prescribe you some new conditions to undertake certain tasks.
Given your personal conditions, your trainer/assessor should also be able to make some reasonable adjustments in undertaking the tasks of this assessment. You should check with your trainer/assessor about the conditions under which the tasks should be completed, and the possible adjustment they can make in undertaking these tasks.
What specific WHS requirements may be involved?
This assessment will require you to be aware of the standard Workplace Health and Safety requirements e.g. Workplace Health and Safety Act and Workplace Health and Safety Legislation Your trainer/assessor will advise you on these and other legislative requirements.
Tasks and frequency of performance
Details of the tasks to be undertaken in this assessment are provided in the attached Case Study. The tasks listed in that document must be performed at least once.
It is anticipated that the assessment will take approximately 8 hours to complete.
The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-submission” on your resubmitted work.
You must complete all questions unassisted by the assessor or other personnel but may refer to reference material as may be needed. All questions must be answered satisfactorily for the assessment to be completed satisfactorily.
For any assessment conducted that is incomplete, or without satisfactory performance, the assessment will need to be completed again after further training support. This may be simply to focus on question areas not achieved in the prior assessment.
Submitting your assessment
When you are ready to submit your assessments, upload the files in Canvas via the submission tab. It is important that you keep a copy of all electronic assessments submitted to Canvas. Please submit all assessment components.
In this assessment some of the questions include a word count. This is a guideline only, but your answers should not vary substantially (i.e. +/- 10%) from the word count provided. Microsoft Word includes a word count tool.
Objective To test the required application skills in managing finances.
Assessment Cover Sheet
Candidate declaration: I declare that:
• I have read and understood all the information provided in relation to the assessment requirements to complete this unit, the instructions and the purpose and processes of undertaking this assessment task
• This assessment is my own work and where other’s works or ideas have been borrowed, I have appropriately referenced or acknowledged them
• I understand that plagiarism is a serious offence that may lead to disciplinary action.
Task 2: Portfolio of Evidence
1. Analyse the case study information (including business plan summary and previous financial data) and complete the following.
a. Develop a sales budget, profit budget, cash flow budget and debtor ageing summary using electronic spreadsheets (as separate worksheets) making sure each budget is divided into quarterly periods and that you use previous financial data to determine allocations for resources.
Ensure each budget you prepare complies with the organisational and policies and procedures as provided.
b. Develop budget notes which include:
i. identification of reasons for previous profits and losses
ii. your comment on the effectiveness of existing financial management approaches
iii. all assumptions and basis that have been made or used to form budgets iv. any relevant notes regarding implementation and monitoring of budget expenditure.
2. Communicate information regarding the budget and answer a series of prompt questions in written or oral form as agreed with your assessor.
You have recently been appointed as the business manager of Houzit Pty Ltd having been a store manager for the past three years. Houzit Pty Ltd is a 15-store retail chain located in Brisbane. Houzit is the leading homewares retailer, catering to the growing need for furnishing new and renovated dwellings in the greater Brisbane area.
The assortment on offer of bathroom fittings, bedroom fittings, mirrors and decorative items together with the recently added lighting fixtures has positioned Houzit as a leader in homewares retailing in Australia. Houzit has grown over the past five years from a single store to the current chain. Houzit prides itself on superior after sales service which has been a key reason for the continued growth in sales and corresponding profit increases. Today Houzit employs over 150 staff.
Houzit Pty Ltd is a proprietary limited company (ACN 34 765 234 02) registered with the Australian Securities and Investment Commission. The registered address is with Houzit’s solicitors (Langs Lawyers,
535 Queen Street, Brisbane, QLD 4000) and the principle place of business is 505 Boundary Street Spring Hill Brisbane QLD 4000.
Computer software requirement
The current accounting information system has not adequately provided sufficient analysis of revenue and expenditure and has made it difficult to make informed estimates of future profits. Estimates have relied on the ‘gut feel’ of the experienced traders on the board and of the senior managers. The board sees the need to apply more analysis to past results that they believe could be done with the introduction of state-of-the-art computer software. Houzit Pty Ltd wants to upgrade their existing accounting system which will manage the company accounts more efficiently in the long run. They request that the new system you recommend to them to be compliant with all legislative and statutory requirements for small to medium businesses.
None of Houzit’s products are GST free however the accounting information system records the GST collected as well as the input tax credits earned on the purchases of stock and assets. These amounts are reported and paid in accordance with the business activity statement (BAS) schedule determined by the Australian Tax Office.
They have 100 fulltime and 50 part-time staff, but only 10 of the staff will have or need access to the financial system. Some staff are paid on a salary sacrifice arrangement that attracts fringe benefits tax. The staff with access to the financial system want software that is a single purchase with no ongoing license fees, and a plan to keep using if for the next 3–5 years, while the organisation continues to grow. They are anticipating that within five years they will have over 250 full-time staff, and at least 20 staff will require access to the financial system by then.
The payroll system deducts withholding tax from the employees and remits this along with the firm’s pay as you go (PAYG) instalment each quarter as reported on the firm’s business activity statement. Income tax return for the company and its annual statement is completed by the firm’s accountant. Taxes and fees due are paid by the due dates. Financial records are kept at Houzit’s principle place of business.
Houzit have just upgraded their computers and have five new desktop PCs which will be used by the finance staff. They are current (for 2017) specification machines with i5 CPUs and 4Gb RAM each, and all have Windows 7 Professional and Norton’s 360 installed with the professional version of Microsoft Office Small Business as well. Other staff will use their machines at various times, so it is important that the software requires a login to access data and that data stored by the software cannot be accessed in any other way.
Business plan summary
1. The anticipation that the coming financial year would maintain the same sales growth as the growth that took place between 2013/14 to 2016/17.
2. To budget for an increase in inflation to 4% per annum and that all costs subject to inflation should incorporate this particular 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.
4. Sales breakup over the departments is anticipated to be bathroom fittings 30%, bedroom fittings 25%, mirrors 15% and decorative items 10% together with the recently added lighting fixtures 20%.
5. Profits are to be built on securing a growing customer base which will generate loyalty sales and become the refer other customers to the organisation. The superior after-sales service is the key strategy to achieve this.
6. 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.
7. One objective in this plan is to manage the debtors more efficiently in the current period. This will involve an analysis of the debtors to identify ways to reduce the amount of cash tied up in outstanding debtors.
8. The expectation that 2017/18 would be a difficult trading year but that the budget net profit should target the same result as achieved in the 2016/17. The strategy to achieve this in the business plan included three key elements:
a. To reduce the expected gross profit rate by 1% on the 2016/17 result in the hope that lower prices on the products would help maintain the sales growth even in difficult trading conditions.
b. To increase the advertising budget by $70,000 over the 2016/17 results in the hope that Houzit can secure a greater market share in a constricting market. $200,000 is planned for the first quarter with the balance apportioned equally over the following three quarters.
c. To increase wages and salaries by $172,500 over the 2016/17 amounts in the hope that allowing the existing high number of casual staff to earn commissions on sales that should help to maintain Houzit’s sales growth.
After going through the business plan summary, the CEO gave you the previous year’s financial reports and asked you to speak with the accountant Celina Patel to get some of the figures and detailed expectations for the coming year.
You arrange a meeting with Celina Patel, Houzit’s accountant, and she gives you the following insight into the historical expense relationships and the current statutory compliance liabilities.
Sales and profit budget information
Celina explained that the only budget she monitors on a day-to-day basis is the cash flow budget and the store manager is primarily responsible for the sales budget. These are the notes you take at the meeting:
? The overall sales for 2017/18 target set by the business plan should be apportioned across the quarters in the same % as was achieved in 2016/17. This was:
Qtr 1 Qtr 2 Qtr 3 Qtr 4 2016/17
3,142,822 3,771,386 4,085,668 4,714,232 15,714,108
? Cost of goods sold is the inverse of the gross profit rate determined by the business plan and is determined by the quarterly sales budget.
? Accounting fees have been negotiated for the year at a fixed amount of $10,000 to be paid in equal amounts each quarter.
? The interest charges on the bank loan are anticipated at a reduced amount of $84,508 due to an agreed repayment of some of the loan principal. This is to be paid in equal amounts each quarter. ? Bank charges are expected to be the same as 2017 and paid in equal amounts each quarter.
? Celina has requested that a new expense (store supplies) be recognised in the new budget that was previously included in with the cleaning expense amounts. Store supplies in the 2015/16 results was $3,500 of the cleaning expense and $3,605 of the 2016/17 result. Cleaning expense will then be lower but identify the real labour costs involved in the cleaning expense.
? Depreciation is expected to be the same as 2017 and allocated in equal amounts each quarter.
? Advertising is to be apportioned to each quarter based on the business plan.
? The following expenses are expected to increase by the determined inflation rate in the business plan summary:
? Insurance – apportioned in equal amounts each quarter.
? Store supplies – is calculated for to each quarter using the same % as determined by the sales for each quarter.
? Cleaning – is calculated for each quarter using the same % as determined by the sales for each quarter.
? Repairs and maintenance – apportioned in equal amounts each quarter.
? Rent – apportioned in equal amounts each quarter.
? Telephone – is calculated for to each quarter using the same % as determined by the sales for each quarter.
? Electricity – is calculated for to each quarter using the same % as determined by the sales for each quarter.
? Fringe benefits tax is expected to be the same as 2017 and paid in equal amounts each quarter.
? Wages and salaries are calculated for each quarter using the same % as determined by the sales for each quarter.
Sales 12,474,336 13,472,315 14,550,100 15,714,108
– Cost of Goods Sold 6,860,901 7,409,773 8,002,555 8,799,900
Gross Profit 5,613,465 6,062,542 6,547,545 6,914,208
– Accounting Fees 5,500 6,500 8,500 9,000
– Interest Expense 45,000 65,000 96,508 90,508
– Bank Charges 1,200 1,300 1,580 1,600
– Depreciation 170,000 170,000 170,000 170,000
– Insurance 12,500 12,500 12,500 12,875
– Store Supplies - - - -
– Advertising 50,000 100,000 280,000 280,000
– Cleaning 12,560 15,652 18,700 19,261
– Repairs & Maintenance 40,250 52,600 60,000 61,800
– Rent 2,465,000 2,465,000 2,465,000 2,538,950
– Telephone 9,862 12,523 14,000 14,420
– Electricity Expense 22,500 23,658 25,000 25,750
– Luxury Car Tax - - 12,400 -
– Fringe Benefits Tax 26,000 26,000 26,000 28,000
– Superannuation 160,737 166,500 171,495
– Wages & Salaries 1,649,998 1,785,965 1,850,000 1,905,500
– Payroll Tax 78,375 84,833 87,875 90,511
– Workers’ Compensation 33,000 35,719 37,000 38,110
Total Expenses 4,770,245 5,017,987 5,331,563 5,457,780
Net Profit (Before Tax) 843,220 1,044,554 1,215,982 1,456,428
Income Tax 252,966 313,366 364,795 436,928
Net Profit 590,254 731,188 851,188 1,019,499
Houzit Pty Ltd
Statement of Financial Position
As at 30 June 2015/16 2016/17
– Cash On Hand 50,000 55,000
– Cheque Account 144,842 160,314
– Deposits Paid 950,000 950,000
– Trade Debtors 850,000 975,000
– Merchandise Inventory 1,530,000 1,430,000
Total Current Assets
– Motor Vehicles At Cost 500,000 500,000
– Motor Vehicles Accum Dep (100,000) (125,000)
– Furniture & Fixtures At Cost 1,950,000 2,250,000
– Furniture & Fixtures Accum Dep (650,000) (770,000)
– Office Equip At Cost 400,000 400,000
– Office Equip Accum Dep (90,000) (115,000)
Total Fixed Assets 2,010,000 2,140,000
Total Assets 5,534,842 5,710,314
– MasterCard 17,800 14,860
– GST Collected 1,455,010 1,571,411
– GST Paid (943,125) (987,626)
– Superannuation Payable 100,000 120,000
– Luxury Car Tax Payable 20,920 -
– income Tax Payable 364,795 436,928
– PAYG Withholding Payable 65,000 44,872
Total Current Liabilities 1,860,400 1,879,445
Long-Term Liabilities - -
– Bank Loans 1,608,459 1,508,459
Total Liabilities 3,468,859 3,387,904
– Owner/Shareholder’s Equity 500,000 500,000
– Retained Earnings 850,000 1,565,982
– Dividends Paid (500,000) (1,200,000)
– Current Year Earnings 1,215,982 1,456,428
Total Equity 2,065,982 2,322,410
Carl Kerns is one of the directors of the board. Carl said that as a board member they are given the profit and cash flow budgets. He was appointed by the board to conduct an internal audit of operations to look for weaknesses in the internal control system. His report uncovered the following processes that he believed needed to be strengthened.
? While the overall customer base is increasing from year to year, there may be internal control issues relating to how these new customers are secured.
? Some discounts that were being given to customers were recorded as a net amount on the invoices and gave no indication of the discount from standard prices.
? Some cash registers in the stores were not reconciling the cash in drawer with the register printout. ? Not all timesheet overtime amounts were being authorised by the line manager.
? Service invoices for some items of equipment were not signed or linked to a purchase order. There was no check that the work had actually been carried out.
? Not all assets in the stores had unique codes fixed to the asset.
? There was minimal feedback lines of communication from the shop floor to head office, particularly when an error in the budgeting report process was recognised.
? Debtor reconciliations were not done monthly and sometimes not at all.
? In busy times the cashiers that operated the registers were also asked to do their own reconciliations and banking. Sometimes the cash was held in the store for a day or two.
? Job roles were not clearly defined so that responsibilities and liability can be identified.
? There was little rostering of duties and cash receipts were not pre-numbered.
Of particular concern to Carl was the directive given by the board to ensure that audit trails were created and maintained. These included:
? Signing the timesheets for employees under the authority of a department manager.
? Maintenance of a numbered cash receipts book.
? Using sequenced cheques as a systematic way of evidencing all monies paid out.
? Ensuring proper coding of evidenced transactions against appropriate general ledger account and cost centre.
? Ensuring reconciliations between company books and third-party bank statements are performed.
GST cash flow budget
Statutory requirements 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:
? Cost of goods sold:
? accounting fees
? store supplies
? repairs and maintenance
? electricity expense.
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.
Houzit Budgeting Policy and Procedures
Budget development process
The standard process for developing budgets will follow the following steps:
1. Establish the budget objective.
2. Gather prior period data.
3. Discuss prior period information and anticipated changes in the budget period with stakeholders.
4. Research relevant external information.
5. Incorporate identified trends to determine assumptions and parameters.
6. Prepare budgets in standard formats.
7. Submit budgets for approval.
Houzit prepares budgets to meet various company objectives. Budgets are prepared:
? for a specific expansion of the business activities:
? business case to be prepared covering a cost-benefit analysis, market research report and summary profit and investment expectations ? to outline a specific debt reduction initiative:
? company-wide summary of profit expectations, planned debt and equity funding arrangements, CAPEX plans summarised ? annually to cover the next financial year:
? for the 12-month period from the beginning to the end of the financial year
? budget to include four quarter milestones in line with seasonal trends identified from prior year data
? initial preparation includes a preliminary overview of the financial year ahead
? sales budget for next year to be prepared by department by quarter
? profit budget (including detailed expenses) for the next year to be prepared by quarter
? cash flow effect of the GST payable per quarter to be prepared (scheduled compliance payment date is the 21st day after the end of the quarter)
? To satisfy the statutory requirements relating to the current and short-term solvency of the company:
? three monthly rolling forecast of cash flows to be prepared ? To qualify the strategic plans for the next 3–5 years planning cycle:
? profit and CAPEX budget to be prepared.
Budget variances and schedules
? Key performance indicators that should be closely monitored and reported on include variances to:
? total sales
? gross profit (GP) %
? wages and salaries as a % of total sales
? total expenses as a % of total sales
? net profit in dollars
? net profit as a percentage.
? Budget variances will be reported using the standard format provided in this policy and procedures document.
? Budget variances must be completed within five working days of quarter end.
? Actual results for the month will be provided by the accounting information system.
? An analysis of the variance between the actual and the budget must include $ and % variance.
? Report with explanations and recommendations to be complete within seven working days of quarter end and be given to the CEO.
? Analysis and investigation of variances will include the following priority:
1. Establish the primary causes for variances to key performance indicators of total sales, gross profit % and net profit $.
2. Establish reasons for those individual items in the variance report that represent the greatest $ variance.
3. Establish reasons for those individual items in the variance report that represent the greatest % variance.
? Schedules relating to compliance due dates must be prepared and monitored by the accountant. Managers supplying information to the accountant regarding the compliance schedule must submit it at least five working days prior to the due date deadline.
The following formats will be used when preparing Houzit budgets and variance reports.
Sales and profit budgets
PROFIT BUDGET 2017/18 Qtr 1 Qtr 2 Qtr 3 Qtr 4
Revenue - % % % %
Sales x,xxx x,xxx x,xxx x,xxx x,xxx
– Cost of Goods Sold x,xxx x,xxx x,xxx x,xxx x,xxx
Gross Profit Calculation Calculation Calculation Calculation Calculation
SALES 2017/18 Qtr 1 Qtr 2 Qtr 3 Qtr 4
BUDGET Total Budget Calculation Calculation Calculation Calculation
Total Sales 16,971,237 Calculation Calculation Calculation Calculation
Bathroom fittings 30% Calculation Calculation Calculation Calculation Calculation
Bedroom fittings 25% Calculation Calculation Calculation Calculation Calculation
Mirrors 15% Calculation Calculation Calculation Calculation Calculation
Decorative items 10% Calculation Calculation Calculation Calculation Calculation
Lighting fixtures 20% Calculation Calculation Calculation Calculation Calculation
GST Cash flow budget
CASH FLOW ANALYSIS – GST 2017/18 Qtr 1 Qtr 2 Qtr 3 Qtr 4
GST Collected x,xxx x,xxx x,xxx x,xxx x,xxx
Less GST Paid x,xxx x,xxx x,xxx x,xxx x,xxx
GST Payable Calculation Calculation Calculation Calculation Calculation
AGED DEBTORS BUDGET TOTAL Qtr 1 Qtr 2 Qtr 3 Qtr 4
Sales x,xxx x,xxx x,xxx x,xxx x,xxx
% Debtors Sales % % % %
Total Debtors % Calculation Calculation Calculation Calculation
Current % Calculation Calculation Calculation Calculation
30 Days % Calculation Calculation Calculation Calculation
60 Days % Calculation Calculation Calculation Calculation
90 Days % Calculation Calculation Calculation Calculation
The CEO of Houzit Pty Ltd, Jim Schnieder explained that he prefers to discuss the budgets with all senior managers prior to their distribution in order to ensure a corporate view of the strategic plans. He then meets with each group separately to answer questions and concerns about their particular area. Eventually the budgets will be printed in hard copy and bound as well distributed as an electronic spreadsheet.
Upon completion of the budgets you meet with Jim to provide an overview of the information contained within the budgets, the budget notes and recommendations regarding the internal controls to prepare him for the meetings with the senior managers. To clarify his understanding of the information, Jim asks you a series of questions.
Based on the information provided in the case study answer the following questions in the space provided below:
1. Identify the current statutory requirements for tax compliance and list and calculate the tax liabilities for Houzit Pty Ltd under taxation legislation. (Length 100 words)
2. Identify the current compliance requirements and liabilities for this organisation under the Corporations Act
2001. (Length 100 words)
3. Review commercially available financial management software to select the most suitable software for Houzit Pty Ltd.
Ensure you diagnose software options by comparing two commercially available software titles against the capabilities of the existing technology for the organisation and against the prioritised requirements and outline the reasons that lead you to this recommendation. (Length 100 words)
1. Develop a variance report based on the format and template provided by Houzit.
2. Complete a cash flow analysis on the average length of time it takes Houzit to collect funds from its debtors to determine the trend based on the financial reports in Part A.
3. Examine the sales budget, profit budget, cash flow budget and debtor ageing summary to identify the following:
i. Identify, describe and prioritise significant issues that are evidenced in the provided case study information and describe reasons or causes of these issues. Include in this issue of financial probity that you have identified or considered when monitoring these budgets. (Length 100 words)
i. Complete an actual-to-budget variance report, using the template provided in the case study.
ii. Identify variances by comparing actual results with the established budget and provide reasons why these variances may have occurred.
Soon after the end of the first quarter, Jim Schneider the CEO of Houzit, asked you to follow up with Celina Patel, Houzit’s accountant, to see how the actual results compared with the budget you had prepared three months ago. You explained that you had a meeting with Celina that afternoon to get the results and that you would report back as soon as you had done some analysis.
The key questions that the board was most interested to have answered from the budgets and the variance reports were:
? ‘To what extent do the reports support the view of the board that Houzit is financially viable?’
? ‘Will we be able to maintain our gross profit margins in the predicted downturn?’
Jim and you both agreed that it had been a tough quarter with the economy still in recession and the impact this was having on the retail sector. Banks are raising interest rates in line with the increased upward international pressure and Houzit has a significant part of their loan funds on a variable interest rate which changes directly with market conditions. Jim was pleased that the sales seem to be holding up reasonably well as first quarter results are generally impacted by factors relating to public and school holidays but he was concerned about the discounts that had to be given to generate these sales.
‘That’s going to hurt us at some point’ Jim said. ‘Just a pity we could not get into some national magazines this quarter to promote the store offers. I’m sure that would have helped us exceed the budgets you set. I guess we will just have to spend that advertising money in the next quarter’ Jim said. ‘I still think we are running our wages and salaries a bit high. The industry benchmark for wages and salaries is close to 11% of sales’
Jim went on to explain, ‘One of our contingency plans in a slowing economy is to reduce our exposure to debt by applying our profits to the repayment of the long term debt. This will help reduce the interest burden on the business and take some pressure off the diminishing profits. It would also be of interest to determine the impact that our debtors has on the cash flow of the business from 2016/17.’
You are a beneficiary of the company’s profit bonus scheme that is based on the profitability of the company’s financial reports which you are required to prepare. You also prepare the departmental reports that form the basis of the performance review of the managers. You are the manager of the finance/administration and prepare this department’s report as well.
You met that afternoon with Celina and she provided you with the following report on the actual results for the quarter ended 30 September 2017.
Houzit Pty Ltd
Actual Results Qtr 1
– Cost Of Goods Sold 1,955,296
Gross Profit 1,415,904
Gross Profit % 42%
– Accounting Fees 2,500
– Interest Expense 28,150
– Bank Charges 380
– Depreciation 42,500
– Insurance 3,348
– Store Supplies 790
– Advertising 150,000
– Cleaning 3,325
– Repairs & Maintenance 16,150
– Rent 660,127
– Telephone 3,100
– Electricity Expense 5,245
– Luxury Car Tax 12,000
– Fringe Benefits Tax 7,000
– Superannuation 37,404
– Wages & Salaries 410,500
– Payroll Tax 19,741
– Workers’ Compensation 8,312
Total Expenses 1,410,572
Net Profit (before tax) 5,333
Income Tax 1,600
Net Profit 3,733
Houzit Pty Ltd
Variance to Budget
xxx Quarter ended mmm-yyyy
Actual Results Budget-Qx Actual-Qx $ Variance % Variance F or U
Sales x,xxx x,xxx x,xxx x% F or U
– Cost Of Goods Sold x,xxx x,xxx x,xxx x% F or U
Gross Profit Calculation Calculation Calculation x% F or U
Gross Profit % % % % x% F or U
– Accounting Fees x,xxx x,xxx x,xxx x% F or U
– Interest Expense x,xxx x,xxx x,xxx x% F or U