16.7 Referring to the information given in exercise 16.6, at the beginning of April 2013 Skippy reviews the past 3 months. Bookings on the first coach trip to Austria were not as good as planned: he sold only 42 places on the coach. However, the second trip was very popular with sales of 50 places. The hotel charged Skippy based upon the actual, not the budgeted number of people. Coach and insurance costs remained the same.

Actual office costs were higher than budgeted: in January Skippy paid £230, in February

£350 and in March £270. The telephone bill of £455 was paid in March. Prepare an income statement for the 3 months ending 31 March 2013 showing columns for actual results, budgeted results and the variation between the two. Also prepare an actual statement of financial position at 31 March 2013 showing an extra column for the budgeted figures. Overall, has Skippy’s business performed better or worse than budget?