Final Assessment: Task 3: Budget variance Carefully read the following: Renata Resonance Ltd specialises in audio equipment, with Renata contracting as an audio consultant, showing customers how to get the best sound quality for their music venues. It commenced operations on 1st January 2017 in a small shopfront in Brunswick, a suburb of Melbourne. Several months before opening, Renata had prepared a chart of expected revenue and expenditure for the first month of operation. At the end of the month, the actual figures for the Month of January were found to be the following: Renata has hired your financial services company that to look into Renata Resonances' finances. You are given the above data, and asked to complete the following activities: 2. Prepare a cash budget variance report. This should be about a page long. It should give possible explanations for each of the above variances, and what impact each may have on the business overall. Renata needs the report to discuss each point separately, in language that she can understand, taking into account that she is neither an accountant nor a bookkeeper. Use Budget Variance Report Template to record your response Print out a copy of your Variance Report to take with you to the meeting with Renata. Before tax net profit for each quarter of 2017 for Renata Resonance were as follows: Due to a change in sales strategy, and a newly developed website, Renata expects sales to grow by 15% in each quarter in 2018 over those for 2017, except for the December quarter, where sales are expected to increase by 20% due to the lead up to Christmas. 3. Prepare a sales budget for 2018 using Microsoft Excel. Create a new Excel Workbook to record your responses. Save this as Renata Resonance Workbook. Final Assessment: Task 3: Budget variance Carefully read the following: Renata Resonance Ltd specialises in audio equipment, with Renata contracting as an audio consultant, showing customers how to get the best sound quality for their music venues. It commenced operations on 1st January 2017 in a small shopfront in Brunswick, a suburb of Melbourne. Several months before opening, Renata had prepared a chart of expected revenue and expenditure for the first month of operation. At the end of the month, the actual figures for the Month of January were found to be the following: Renata has hired your financial services company that to look into Renata Resonances' finances. You are given the above data, and asked to complete the following activities: 2. Prepare a cash budget variance report. This should be about a page long. It should give possible explanations for each of the above variances, and what impact each may have on the business overall. Renata needs the report to discuss each point separately, in language that she can understand, taking into account that she is neither an accountant nor a bookkeeper. Use Budget Variance Report Template to record your response Print out a copy of your Variance Report to take with you to the meeting with Renata. Before tax net profit for each quarter of 2017 for Renata Resonance were as follows: Due to a change in sales strategy, and a newly developed website, Renata expects sales to grow by 15% in each quarter in 2018 over those for 2017, except for the December quarter, where sales are expected to increase by 20% due to the lead up to Christmas. 3. Prepare a sales budget for 2018 using Microsoft Excel. Create a new Excel Workbook to record your responses. Save this as Renata Resonance Workbook