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How can I answer question 3? Owner A asked you to prepare and complete August 2021 budget on the Overall Budget on Xero You are
How can I answer question 3?
Owner A asked you to prepare and complete August 2021 budget on the Overall Budget on Xero You are provided the following comments: 1. We expect August 2021 to be yet another challenging month in terms of trading with some improvement. a. Anticipating Sales (maintaining the same sales mix) to triple from previous month. 2. We are expecting our operating expenses to largely remain the same level as previous month. a. The local paper advertising has been effective for our business as we start getting leads earlier in the month. We should increase our advertising budget by $100 for the month. b. Wages and Salaries see note 3 below. 3. We are committed to supporting our people through this difficult time. a. Fortnightly payroll (A working week is from Monday to Friday) remains the same as previous month. b. Two fortnightly pay runs fall in the month. c. We should consider accruing wages for the last two days of the month. Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Telephone & Internet (489) 0 0 0 0 0 Travel - International (494) 0 0 Travel - National (493) 0 0 0 0 o Unrealised Currency Gains (498) 0 O o O O Wages and Salaries (477) 19,800 o O o Total Operating Expenses 31,485 0 0 Total Expenses 31,485 0 O Net Profit (13,686) 71,456 Owner A asked you to prepare and complete August 2021 budget on the Overall Budget on Xero You are provided the following comments: 1. We expect August 2021 to be yet another challenging month in terms of trading with some improvement. a. Anticipating Sales (maintaining the same sales mix) to triple from previous month. 2. We are expecting our operating expenses to largely remain the same level as previous month. a. The local paper advertising has been effective for our business as we start getting leads earlier in the month. We should increase our advertising budget by $100 for the month. b. Wages and Salaries see note 3 below. 3. We are committed to supporting our people through this difficult time. a. Fortnightly payroll (A working week is from Monday to Friday) remains the same as previous month. b. Two fortnightly pay runs fall in the month. c. We should consider accruing wages for the last two days of the month. Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Telephone & Internet (489) 0 0 0 0 0 Travel - International (494) 0 0 Travel - National (493) 0 0 0 0 o Unrealised Currency Gains (498) 0 O o O O Wages and Salaries (477) 19,800 o O o Total Operating Expenses 31,485 0 0 Total Expenses 31,485 0 O Net Profit (13,686) 71,456Step by Step Solution
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