Eros Co. Abhishek Human Resources Department 5 photos selidyad Draw Salaries Salary-related costs (20% of base salaries) Travel Office expenses Training programs Total Budgetary Control Report for Current Year Read aloud Ask Bing Al Cash on hand Accounts receivable Required (a) Based only on the bottom line (i.e.. total expenditure), is the HR department in control or out of control? (b) (c) Do you think the HR department has carried out the HR activities that it was expected to do? (d) Inventory Prepayments & deposits Total current assets Based on the individual line budgets, is the HR department in con- trol or out of control? . Budget $250,000 Some organizations have "loose" control systems, and some have "tight" control systems. Does this matter in respect of how we look at the above data? 50,000 100,000 200,000 500.000 $1.100.000 . 2. You are the manager of Forest Products Inc. On January 1, you expect the following balances. Current trade liabilities Expected sales revenue for January Expected cost of goods sold for January Expected expenses for January ADMIN2536 E Online Syllat fel X D/sem2/ADMN2556/2556-E%20TEXT%20BOOK.pdf Read aloud H 357 of 642 RID During January, you expect to pay: Actual $275,000 40,000 1.000 $150,000 Bing Al 55,000 125,000 220,000 400.000 During January, you expect to receive: . All the $25,000 outstanding from November $50,000 of the amount outstanding from December 50% of January's sales revenue (the remainder being sold on credit) 100,000 F $1.075.000 $ 25.000 F $ 9,000 100,000 ($75,000 from December, $25,000 from November) Variance $ 25,000 U $75,000 current trade liabilities All the expenses, except $1,000 of depreciation and $200 expiration of prepayments Inventory bought in January will be paid for in February. Required Prepare a cash budget for January. 2556- TEXT BOdpdt 5,000 U 25,000 U 20,000 U 547 of 642 X $75,000 $180,000 $120,000 $10,000 1 tb CO 1 L G a108 3. Pedro's Plumbing uses an interest rate of 20% to evaluate new in ment projects. The company is considering a new in-store security sy for its Carlton Place branch. The system is budgeted to cost $654, The cost will be depreciated over its expected useful life of five years. new system should increase cash flows by reducing stock shrinkag $200.000