Finance Answers

How will you ensure that sufficient and current records are maintained to comply with lodgement requirements?

Describe a process that could be used for collating, coding, and classifying accounts data in preparation for processing.

What do information systems capture and why are they important?

An item’s GST free cost is $750.00. How much GST should be added? What is the GST inclusive cost?

What corrective action does the budget audit consider? (100–130 words)

Approximately what effect would not purchasing the capital items have?

What advice would you give about the paying of a $1,000 bonus to the junior staff in June promised in the September quarter based on the staff’s performance and the financial performance of the business for the year?

What are the responsibilities of the petty cashier in managing a petty cash system?

Members of XYZ are preparing the next years budget. The current years projected income statement:
sales revenue $2,300,000
cost of goods sold $1,725,000
gross profit $575,000
selling & admin cost $304,000
net income $271,000
Cost of goods sold is 75% of sales revenue, and selling & admin costs are 10% of sales plus a fixed cost of $74,000. The goal is to increase net income by 15%.
1. Prepare a pro forma income statement. What % increase in sales would enable the company to reach its goal?
2. The company does not expect an increase in sales revenue. Management thinks that an improved production can cut cost of goods sold by 2 %. Prepare a pro forma income statement still assuming the goal is to increase net income by 15%. Calculate the required reduction in selling & admin to achieve the budgeted net income.

Briefly explain how you can use the concept of a budget calendar in describing reporting timelines