Upon reviewing the budgets and cash flow forecast for the 2022 - 2023 FY, several issues and concerns can be identified:

1. Equipment Budget: - The total equipment budget is $20,000 AUD, but the total expenses listed for equipment purchases amount to $23,263 AUD, resulting in a budget deficit of -$3,263 AUD. This indicates overspending on equipment, which could strain the cash flow and overall financial plan. - It's important to review the necessity and priority of each equipment purchase to bring the expenses in line with the allocated budget.

2. Marketing Budget: - The total marketing budget is $100,000 AUD. However, there are significant changes in marketing expenses quarter-to-quarter. For instance, there is no allocation for Trade Shows in the second and fourth quarters, which might impact the effectiveness of marketing strategies during those periods. - The Website Upgrade expense is listed only for the first quarter, but ongoing website maintenance costs are present in the second and fourth quarters. Ensuring a consistent allocation for website-related expenses throughout the year could improve online presence and customer engagement.

The budget amount of $20,000 for Fitness equipment and $100,000 for marketing are set and cannot be exceeded. Therefore you will need to assist the managers in determining ways that they can reduce their budgets.

The managers should also ensure that they have enough money set aside for unexpected expenses. This is not stated in the policies and procedures but it is good practice to leave at least 10% of the budget for unforeseen expenses such as replacement equipment if something breaks.

Marketing Budget FY 2022 - 2023

Total Marketing Budget = $100,000 AUD

Marketing StrategyFirst QuarterSecond QuarterThird QuarterFourth QuarterMagazine Advertisements$10,000.00$10,000.0010,000.00$10,000.00Trade Shows$25,000.00-$25,000.00-Market Research$10,000.00$8,000.00$6,000.00$5,000.00Website Upgrade$10,000.00-- Website Maintenance --$2,000.00$2,000.00 Total Expenses$55,000.00$18,000.00$43,000.00$17,000.00Budget Remaining$45,000.00$27,000.00-$16,000.00-$33,000.00

Equipment Budget FY 2022 2023

Total Equipment Budget = $20,000 AUD

EquipmentQuantity

Base Price

Inc GST

First QuarterSecond QuarterThird QuarterFourth Quarter91cm Premium Foam Roller20 $50.00 $1,000.00 000Reversible Yoga Mat20$45.50 $910.00 0003-in-1 High Density Foam Plyometric Box5$365.00 $1,825.00 000Half Stability Ball5$155.00 $775.00 000Power Bag (5kg)5$80.00 $ 400.00 000Power Bag (10kg)5$90.00 $ 450.00 000Power Bag (15kg)5$100.00 $500.00 000Power Bag (20kg)5$110.00 $550.00 000Power Bag (25kg)5$120.00 $ 600.00 000Chrome Dumbbell Set with Rack (1kg to 10kg pairs)2$595.00 $1,190.00 000Pin-loaded Lat Pulldown Low Row Machine2$1,290.00 $2,580.00 000Plate-loaded Pec Machine2$699.00 $1,398.00 000Leg Press Hack Squat Machine2$1,795.00 $3,590.00 000Pro Runner Treadmill2$1,499.00 $2.998.00 000 Total Expenses$23,263.00000Budget Remaining-$3,263.00000

You are the Marketing Manager and responsible for all marketing programs and promotional activities at Bounce Fitness Centre. You have sent your marketing budget to the centre manager for approval. The budget is currently $33,000 over the forecast amount. You feel that everything within your budget is necessary in order to increase market share as per the business goals for the 2022 -2023 FY. Within the last financial year you attended two trade shows which expanded your network in the industry however in it did not translate to an increase in customer numbers as you had hoped. You would still like to attend the trade shows this year however, as you believe that this year it might be different.

You are the Marketing Manager and responsible for all marketing programs and promotional activities at Bounce Fitness Centre. You have sent your marketing budget to the centre manager for approval. The budget is currently $33,000 over the forecast amount. You feel that everything within your budget is necessary in order to increase market share as per the business goals for the 2022 -2023 FY. Within the last financial year you attended two trade shows which expanded your network in the industry however in it did not translate to an increase in customer numbers as you had hoped. You would still like to attend the trade shows this year however, as you believe that this year it might be different.

Revise the Budget Plans and cash flow forecast and explain.