+1-415-670-9189
info@expertsmind.com
Manage budgets and financial plans
Course:- Managerial Accounting
Reference No.:- EM13228




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Managerial Accounting

Complete the financial reporting for every period and develop recommendations using the templates provided.

Procedure

1. Read the case study.

2. Complete the financial reports for each period as requested.

3. Analyse the data and complete your recommendations in the space provided.

4. Complete a new budget based on your recommendations.

Proactive Management Consultants Pty Ltd (PMC) is a small service organisation that offers consultative services to a wide variety of clients and has been in existence for just over five years. Typically they advise their clients on professional development opportunities, organisational structure and simple training initiatives. Although the past 12 months have been profitable for PMC, they face a very uncertain future. Reducing government support, the global financial crisis, an increasingly competitive market and a client base that believe they are already paying too much.

PMC prides itself on the advice they give their clients, therefore, finance has never been their strength. The PMC board has approached your company to provide monthly financial reports and recommendations on how they could proceed with their financial plans.

PMC has provided each month's sales and expenditure data from which they require your company to complete the reporting in the provided templates, interpret the data and provide recommendations.

Accounts payable are entirely paid month-to-month whereas accounts receivable is calculated 60% current month, 30% last month, 10% second to last month: actual May sales = $42,100, actual June sales = $47,300. These figures will be required to calculate actual sales receipts for July and August.

PMC has also provided you with a list of initiatives they had planned to undertake over the next six months that have been budgeted for in their financial planning which they need you to consider in your recommendations. They are:

• anticipate large invoicing month in July due to number of leads

• 15th of August moving to new premises whereby rent increases to $3,500 per month

• all company motor vehicle registrations and insurance are due in July $18,000

• have sought an aggressive advertising campaign in October to invigorate lost clientele, $16,000

• To increase productivity PMC will upgrade all computers under expensed equipment in September at $12,000.

• Due to advertising campaign, PMC are recruiting two new consultants in October. This will add 30% to November's and December's payroll and $10,000 in recruitment and training during October and result in increased business (40% November and December).

• purchasing a licence to deliver an innovative training program in November for $20,000

• have contractual agreements in January and February that will generate $32,000 in sales

• three employees on annual leave will have 50% impact on sales in November

• conducting a professional development week for all staff in December $18,000

• employee bonuses due in December, anticipate $16,000.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
What do you think was the motivation for Cubbies Cable in taking the position to expense all cable costs during the nine months ended September 20, 2010? Would you character
Prepare an incremental analysis for the 4 years showing whether Shellhammer should keep the existing machine or buy the new machine and calculate the annual rate of return f
Who are the stakeholders in this situation and what are the potential ethical issues and concerns - what suggestions can you make to reduce these concerns?
I am having to explain and provide detailed example of where activity base costing would be employed. I'm capable to describe ABC in length but can't come up with detailed e
A Trucks Parts Manufacturer is approached by an European customer to fulfill a special one-time order for a product similar to one offered to domestic customers. Truck Parts
Prepare an Income Statement. After you are completed, a corrected Income Statement should be completed by your spreadsheet automatically with only a change in any of the ass
ACC00724 Accounting for Managers Assignment. Calculate the overhead allocation rate: note that the process is labour-intensive and Calculate the total costs of the special ord
Calculate Newport's net cash inflows or outflows for (a) operating, (b)investing, and (c) financing activities. Discuss whether or not the short-term investments are cash eq