Do the balance Sheet from Aug ~ Jun
Bill Board is trying to understand his business better and would like to know how to do a budget since he never went to UTS and therefore didn't have EEF. He has asked you to 1) Prepare a budget; 2) calculate his ratios based on the budget and 3) explain to him what it means. Below is what he knows. 1. In addition to the July transactions (some of them ongoing each month), he knows that the hotel construction will be completed in time for the last payment to be received this year. He has tendered for a high rise apartment block and has secured the contract. The terms are cost plus. Cost is determined to be at $500,000 and his profit margin is 10%. Profit will be paid at the end of the contract. The contract is estimated for completion two years from now. Cost is paid upon contract signature and Bill will spend 80% of these within 12 months. Bill has sent of the signed contract on 1 August Due to a work boom, Bill needs to hire employees. He needs one admin person, one engineer and one builder which is employed at $70k pa, $120k pa and $100k pa respectively. Bill has also gotten quite a few work of mouth job requests that he has quoted on. 90% of these jobs are confirmed but not paid and they are service based jobs. The total of these quoted jobs come to $80,000 and Bill uses a subcontractor for this work. He pays the subcontractor 5% of the job price. Accounting: "do the books" for Billder Board Pty Ltd: calc Aug-Jun Total Profit & Loss Revenue - Cost of Goods/Services 360,275 100.000 260,275 Gross Profit - Depreciation - Phone & Internet - Wages 319 - Interest Net Profit 258.965 Balance Sheet Current Assets Bank 212,000 Inventory Debtors Total Current Assets 180,275 392,275 Non Current Assets At cost Acc dpn of MV Total MV At cost Acc dpn of Equipment Total Equipment At cost Acc dpn of Computer Total Computer Total Non Current Assets Total Assets 27,000 225 26,775 30,000 641 30,159 3,000 125 2.875 59 809 452,084 319 Current Liabilities Creditors Total Current Liabilities Non Current Liabilities 110,000 Loan Total Non Current Liabilities Total Liabilities 110,000 110,319 Capital Profit/Loss (Retained Earnings) Total Equity 82.800 258,965 341,765 Bill Board is trying to understand his business better and would like to know how to do a budget since he never went to UTS and therefore didn't have EEF. He has asked you to 1) Prepare a budget; 2) calculate his ratios based on the budget and 3) explain to him what it means. Below is what he knows. 1. In addition to the July transactions (some of them ongoing each month), he knows that the hotel construction will be completed in time for the last payment to be received this year. He has tendered for a high rise apartment block and has secured the contract. The terms are cost plus. Cost is determined to be at $500,000 and his profit margin is 10%. Profit will be paid at the end of the contract. The contract is estimated for completion two years from now. Cost is paid upon contract signature and Bill will spend 80% of these within 12 months. Bill has sent of the signed contract on 1 August Due to a work boom, Bill needs to hire employees. He needs one admin person, one engineer and one builder which is employed at $70k pa, $120k pa and $100k pa respectively. Bill has also gotten quite a few work of mouth job requests that he has quoted on. 90% of these jobs are confirmed but not paid and they are service based jobs. The total of these quoted jobs come to $80,000 and Bill uses a subcontractor for this work. He pays the subcontractor 5% of the job price. Accounting: "do the books" for Billder Board Pty Ltd: calc Aug-Jun Total Profit & Loss Revenue - Cost of Goods/Services 360,275 100.000 260,275 Gross Profit - Depreciation - Phone & Internet - Wages 319 - Interest Net Profit 258.965 Balance Sheet Current Assets Bank 212,000 Inventory Debtors Total Current Assets 180,275 392,275 Non Current Assets At cost Acc dpn of MV Total MV At cost Acc dpn of Equipment Total Equipment At cost Acc dpn of Computer Total Computer Total Non Current Assets Total Assets 27,000 225 26,775 30,000 641 30,159 3,000 125 2.875 59 809 452,084 319 Current Liabilities Creditors Total Current Liabilities Non Current Liabilities 110,000 Loan Total Non Current Liabilities Total Liabilities 110,000 110,319 Capital Profit/Loss (Retained Earnings) Total Equity 82.800 258,965 341,765
