Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have been asked by the owner of a small consultancy called Voyager to prepare the master budget. The consultancy consists of the senior staff
You have been asked by the owner of a small consultancy called Voyager to prepare the master budget. The consultancy consists of the senior staff who charges out at $68 per hour plus GST and the junior staff who are charged out at | ||||||||||||
$42 per hour plus GST. The owner has advised you that the following hours are forecasted for each quarter. | ||||||||||||
hours | Sep-16 | Dec-16 | Mar-17 | Jun-17 | ||||||||
senior | 250 | 230 | 230 | 230 | ||||||||
junior | 210 | 220 | 210 | 220 | ||||||||
The consultancy has a credit system of payments with 60% of payment received the quarter in which they are earned and the remaining 40% earned the following month. | ||||||||||||
The opening accounts receivable is $13,200 including GST. The owner will purchase a new vehicle in the September 2016 quarter for $28,600 | ||||||||||||
In March they will purchase a photocopier for $4,400 and a computer system for $5,500 with an upgrade in June 2017 for a further $2,750. Each item is inclusive of GST. | ||||||||||||
The following table shows the information about expenses and is based on source documentation from the companys previous operations. Each item in the table is inclusive of GST. | ||||||||||||
quarter | Sep-16 | Dec-16 | Mar-17 | Jun-17 | ||||||||
motor vehicle expenses | $ 1,300.00 | $ 1,495.00 | $ 300.00 | $ 450.00 | ||||||||
printing | $ 200.00 | $ 50.00 | $ 200.00 | $ 50.00 | ||||||||
electricity | $ 600.00 | $ 555.00 | $ 500.00 | $ 500.00 | ||||||||
rent | $ 4,500.00 | $ 4,500.00 | $ 4,500.00 | $ 4,500.00 | ||||||||
Depreciation is $700 per quarter and tax payable at 30% of net profit per quarter. Wages for the senior staff are $8,000 per quarter and junior $5,000 per quarter. | ||||||||||||
The consultancy uses non-cash method (accrual) to account for GST. The opening GST liability is $2,000. The opening cash balance as at 1 July 2016 is $42,000. | ||||||||||||
The opening balance of provision for income tax (i.e. the net income tax payable for the year 2016) is $5,000 which will be paid in December 2016. | ||||||||||||
We assume that all the capital expenditures and expenses are paid in the same quarter when they incur. The consultancy is required by ATO to pay PAYG instalment of $250 per quarter. | ||||||||||||
Suppose that Voyager has non-current assets valued at $55,000 with accumulated depreciation at the beginning of the year of $20,000. | ||||||||||||
The owner invested $1,000 to the company as share capital when the company was established a few years ago. | ||||||||||||
There will be no change to the share structure or capital. All the other equity is represented by retained earnings. | ||||||||||||
Required: Based on the above information, prepare: | ||||||||||||
1. Revenue Receipts Forecast for the year ended 30 June 2017 | ||||||||||||
2. Cash Collections Forecast for the year ended 30 June 2017 | ||||||||||||
3. Capital Expenditure Budget for the year ended 30 June 2017 | ||||||||||||
4. Expenses Budget for the year ended 30 June 2017 | ||||||||||||
5. GST Budget for the year ended 30 June 2017 | ||||||||||||
6. Budgeted Statement of Financial Performance for the year ended 30 June 2017 | ||||||||||||
7. Budgeted Statement of Cash Flows for the year ended 30 June 2017 | ||||||||||||
8. Budgeted Statement of Financial Position as at 30 June 2017 Round your answer to the nearest whole number. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started