ACA RESTAURANT CAFE' For quarter ending 31st March 201X Budget Actual Variance $ % Variance Income Food $ 865,000 $ 668,000 Internal Events $ 729,000 $ 705,000 Beverages $ 456,000 $ 468,000 External Catering $ 458,000 $ 395,000 Total Income Cost of Sales Food $495,000 $ 358,000 Beverages $365,000 $ 345,000 Total Cost of Sales Gross Profit Expenses Internal Events Salaries and Wages Electricity Advertising & Promotion External Catering Salaries and Wages Electricity $265,000 $ 5000 $ 301,000 $200,000 $ 248,000 $ 5000 $245,000 $220,000 $ 6,000 $ 120,000 $ 5,000 Advertising & Promotion $ 100,000 Restaurant & Caf' Salaries and Wages $325,000 $ 130,000 Electricity $ 10,000 $ 12,500 Advertising & Promotion $ 85,000 $ 100,000 Bar Salaries and Wages $ 185,000 Electricity $ 1,800 Advertising & Promotion $ 55,000 $190,000 $1,950 $ 65,000 Total Expenses Net Profit/Loss A2. Using the BUDGETED INCOME STATEMENT ACA RESTAURANT CAFE' (above) for quarter ending 31st March 201X, discuss in 150-200 words the overall outcome of the budget when compared to the actual: Is it Favourable/Unfavourable? 5 Marks A3. Investigate the BUDGETED INCOME STATEMENT ACA RESTAURANT CAFE' for quarter ending 31st March 201X. Discuss in 150-200 words at least two (2) actions that might be taken by you, as a manager, to correct adverse deviations (unfavourable) in the following situations: 5 Marks A4. an excess of departmental salaries over budget; (2.5 marks) a lower actual income volume compared with budget (2.5 marks) Based on the above information and your justifications, forecast/budget for the next quarter ending 30 June 201X. You are to forecast and complete all the shaded areas: Several internal and external factors need to be analysed when completing the forecast for ACA Restaurant Caf': Seasonal changes Travel Advisory/terrorism Alerts available through www.safetraveller.gov.au Market demand change and customers preferences e.g. demand for healthy options Government policies and initiatives on food and beverages e.g. tax policies, labour cost Staffing and retention difficulties including Labour costs Direct and online bookings with hotels Technology adaptation Competitive advantages e.g. changing prices, or improving product differentiation, or channels of distribution Packages available through consolidator website BUDGETED INCOME STATEMENT ACA RESTAURANT CAF' For quarter ending 30th June 201X 5 Marks + For quarter ending 30th June 201X (Total of 15 Marks) Income Food Internal Events (2% increase) Beverages External Catering Total Income Cost of Sales Food Beverages Total Cost of Sales Gross Profit Expenses Internal Events Salaries and Wages Electricity 5 Marks You are to forecast the data based on your understanding on what the budget could be for the next quarter. You may predict that some of the amount may remain unchanged or there may be some certain % of changes since the past quarter period as stated in Task A1. In that case, please state how much % of increase or decrease has been considered against changed items. On example has been provided within the template below for your better understanding: which states that, the forecast for the next quarter period, the Income for "Food" remains unchanged, however, there is a prediction that, there will be a 2% increase with the "Internal Events". Budget ending 30 June 201X $ 865,000 $ 743,580 $ $ SCENARIO 2 ACA Restaurant Caf, has a been in business since 2014 in Sydney CBD. It has not upgraded its Computer, software and printer since opening in 2014. The Owners are thinking of buying a new computer and a new professional multifunction printer in three months' time (December, 201X) at a cost of $65,000. The old computer and printer equipment will be sold for scrap at that time for $3,000. Assume that record provided by the Accountant show that the opening bank balance of $50,000 at the beginning of October. Other details include: The Owners estimate $70,000 sales/commission for each month. Half these sales are received in cash and half are received in the next month as they are credit sales from the corporate accounts at the travel agency has payment arrangements with. October's credit sales from September, amount to $35,000. Purchases amount to 25% of sales (excluding scrap) and are paid for in cash. Full time labour/staff direct costs are $20,000 each month. Superannuation ($3,000), rent ($3,000), energy bills ($2,000), miscellaneous ($2,500) are all paid monthly. General couriering work amount to $1,000 per month for brochure movement around the region. Rates are paid once in October of $5,000. Your Task is to: Respond to the following by completing the template and prepare a report of recommendations in 300-400 words to answer; B1 Cash budget for each month for ACA Restaurant Caf', (please complete template below: Cash Flow Budget Template 1) with the view to recommendations to the Owners whether they are able to pay $65,000 cash for the computer and printing equipment at the end of December 201X. 4 Marks B2 Outline actions to rectify the problem if the balance at the end of December 201X was negative 2 Marks $ $ Advertising & Promotion $ External Catering Salaries and Wages $ Electricity $ B3 Identify people to consult and inform in relation to reporting and financial responsibilities in this case Advertising & Promotion $ Restaurant & Caf' 2 Marks Salaries and Wages $ Electricity $ Advertising & Promotion $ Bar Salaries and Wages $ Cash Flow Budget Template 1: (for Task B1) Electricity $ Advertising & Promotion $ ACA Restaurant Caf' Total Expenses Cash budget for the three months ending 31/12/201X Net Profit/Loss October November December TOTAL Quarter Cash receipts Cash sales Debtors Scrap Total cash receipts Cash payments Purchases Labour cost Superannuation Rent Energy bills Miscellaneous Transport and couriers Rates New equipment Total cash payments Surplus/ Deficit Cash balance at start Cash balance at end ACA Restaurant Caf' Cash budget for the three months ending 31/12/201X October November TOTAL December Quarter SCENARIO 3 The cash budget you have just completed needs to be modified after some negotiations based on the policy and procedures of ACA Restaurant Cafe 'and the Business plan. B4 B5 The owner estimates $70,000 sales/commission for each month to remain With sales averaging 90% cash and 10%, debtors for September were $6,000 Purchases average 30% of sales Bank Balance at the start of the quarter was $4,000 . All other details remain same as above Your Task is to: Respond to the following by completing the template and prepare a report of recommendations in 300-400 words to answer; Prepare a REVISED cash budget for each month for ACA Travel Agency, (complete template below: Revised Cash Flow Budget Template 2) with the above information view to making recommendations to the owner whether they can pay $65,000 cash for the computer and printing equipment at the end of the third month (December). Justify the REVISED cash budget 2 Marks 2 marks + B6 B7 Identify personnel you to consult and inform in relation to the finalisation of the budget and how have these modifications effected the decision to revise the Cash Flow budget? 2 Marks Using the initial and revised "Cash Flow budgets" outline reasons behind this type of budget used and the monitoring needs to be undertaken. 1 Mark Revised Cash Flow Budget Template 2: (for Task B4) Cash receipts Cash sales Debtors Scrap Total cash receipts Cash payments Purchases Labour cost Superannuation Rent Energy bills Miscellaneous Transport and couriers Rates New equipment Total cash payments Surplus/ Deficit Cash balance at start Cash balance at end ACA Restaurant Caf' Cash budget for the three months ending 31/12/201X October November December TOTAL Quarter TASK C (Total of 20 Marks) ACADEMIES AUSTRALASIA SCENARIO 4 BUSINESS RELATIONS TASK C (Total of 20 Marks) T-1.8.1 Since the year ACA Restaurant Caf has been established in 2014, Building a solid rapport and eventually, a long-term relationship with partners, contractors, customers, networks and suppliers through creating connections, looking out for their best interests and maintaining communications. Generically, the Owners of ACA Restaurant Caf have already developed and continuously seeking to improve the business relationships with many, however one of them being the following: ACADEMIES AUSTRALASIA C1 Using ABC Tech Company Training Cash Receipts accounts receivable collection pattern and sales forecast complete the template below: Cash Projection Template 3, to represent cash receipts projection for the first 6 months of 201X. 10 Marks T-1.8.1 The actual sales for October. November and December of the previous year were $30,000. These cells have been inserted below; Cash Projection Template 3 Forecast training (Sales) 10% deposit ABC Tech Company Training Cash Receipts projection Jan 201X Feb 201X 30,000 35,000 March 201X 40,000 70% 1st Month 18,900 20% 2 month 5,400 5,400 10% 3 Month 2,700 2,700 2,700 Total Receipts ACADEMIES AUSTRALASIA Each tour is scheduled for 3 hours, but the tour guide is rostered for 4 hours for each tour. T-1.8.1 Included in the tour is a "coffee and cake" at a caf costing $2.00 for cake and $2.00 for coffee person. There are 10 customers in each tour. Entrance to the museum after the tour is $10.00 for Academies Tour company. Customers are charged $50.00 per tour. Respond to the following by completing the template and prepare a report of recommendations in 200-300 words to answer; Your Task is to: April 201X 50,000 May 201X 40,000 June 201X 30,000 D1 Describe what Breakeven Point (BEP) is and a method of calculating BEP D2 2 Marks Give a summary of fixed and variable costs, and outline 3 direct and indirect costs associated with the above tour 3 Marks Contractors - with ABC Tech Company - have been in business for a while with providing IT support and training services for educating staff on using the technologies. Just recent service contracts since last three months - Installation of new technology system (Microsoft Surface Pro) within the restaurant integrated with ordering and tracking of inventory to improve the accuracy of order, and speed and proficiency of service. Automated kitchen functions with POS systems allowing to organise food and beverages orders to reduce waste, cooking the right amount of food to minimise waste. Kitchen automation software allows the chef to see what they need to cook and when. - helps front-house and back of the house to communicate without causing communication. ABC Tech to service contracts for internet, system technology for online ordering and supply of self-ordering tablets, services of technical equipment, repair and or maintenance services based on the terms of a legally binding contract. Self- ordering using tablets contracted to be connected in the next three months. Payment Plan agreement with ABC Tech Company ABC Tech Company has realised that the credit terms are best described at Net 30. They have in their Terms of Service that 10% must be paid when the consultation training agreement is signed. The remainder is billed on completion of the training program. So. from experience with accounts receivable collections, the owner assumes the following when projecting cash receipts for the cash flow budget; 70% of the accounts receivable are collected in the month following the completion of the training 20% of the accounts receivable are collected in the second month following the completion of the training 10% of the accounts receivable are collected in the third month following the completion of the training used with the restaurant caf. A part of the business dealing has been agreed with ACA Restaurant Caf' would be that, ABC Tech Company will receive payment for training services in a certain payment plan on monthly basis. Since they have installed the the Owners require more regular training to ensure staff are confident in using the technology to reduce errors in their work and improve services. C2 C3 Describe what "Net 30" means and whether this method of payment is appropriate for a small business such ABC Tech Company Training. Outline what the payment due date would be if the invoice was issued on the 10/7/201X 5 Marks Outline FOUR (4) methods / ways of Financing that ABC Tech Company Training could use to raise capital for its future training expenditure or investment. (Name four sources of revenue). 5 Marks You are required to work out the breakeven point of each tour based on the details and provide the calculations; complete all the shaded areas in the given the template below. Break Event Point Template 4: Break Even Point Template 4 SCENARIO 5 > TASK D (Total of 15 marks) Your Task is to: Respond to the following by completing the template below: Cash Projection Template 3 and prepare a report of recommendations in 200-300 words to answer; ACA Restaurant Cafe' has made an arrangement with Academies Tour company to sell their 3-hour tour to visitors. The tour is scheduled to run at 10.00am-1.00pm and 2.00-5.00pm, 5 days per week. They hired a casual tour guide and have agreed to pay them $40 per hour. Full time staff Rent Insurance Utilities Fixed Costs $1,000 per week $1,000 per week $300 per week $200 per week Variable Costs Total Casual Staff Coffee Cake Entry fee Total D3 Using the above calculation and show workings for the Breakeven point associated with the tour. 3 Marks D4 When calculating LABOUR for this tour, we include ON COSTS. List SIX (6) items which could be classified as on costs for labour in the scenario 2 Marks Do ACADEMIES AUSTRALASIA D5 Outline recommendations you could make to the owner of Academies Tour company to make the tour more profitable in the long term? SCENARIO 6 TASKE T-1.8.1 5 Marks E2 (Total of 25 Marks) E3 ACA Restaurant Cafe' has joined with The Event Management Company (TEMC) in charge of organizing 201X "Sculptures by the Sea" Event. You are required to assist the Manager of TEMC to complete a cash flow forecast. Your Task is to Respond to the following by completing the template and prepare a proposal of recommendations in 200-300 words to answer; E1 Input the information and data from the case scenario below, using computer accounting software (e.g. MYOB or MS Excel). 12 Marks (You are to create your own template using the accounting software or use the template provided in Appendix 1 as a sample for excel.) Your cash flow forecast will predict the bank balance at the end of each month for each month of the year. The information you have at your disposal to complete this task is as follows: The event management company has on its books four major events to run which will take place in March, May, August and October. The total of $285,000 of tickets sales will be earned in the months that the events are held. The March event will earn $65,000, and the other events in May. August and October will earn $55,000, $75,000 and $70,000 respectively. Expenditures on casual wages of $10,000, travel and transport of $60,000, and venue hire of $24,000 will occur only in the months in which the four events take place. These expenditures will be the same for each event. An extra amount of $2000 will also occur in April and November evenly, for travel and transport and for casual wages respectively. Salaries and Office administration expenses respectively of $180,000 and $36,000 will occur evenly every month. The company's opening balance on 1 January is $10,000. The company will receive a government grant of $40,000 in July. ACADEMIES AUSTRALASIA T-1.8.1 The company will make a small income of total $6500 from Merchandising during the months in which the four events are staged. The event in March will earn $1,500 merchandising income, and the other events in May. August and October will earn $1,600, $1,800 and $1,600 respectively. Outline at least two (2) recommendations to the owner of TEMC on how the decision-making path of the future business could be changed based on your completed budget 8 Marks Discuss who is required to be consulted and how the completed budget would be circulated to the stakeholders internally and externally. 7 Marks END OF ASSESSMENT