A small taxi company presents the following preliminary balance sheet as of December 31 in the financial statements for the year 2020. The preliminary one is when we are in November 2020 and are budgeting for the financial year 2021. Balance sheet 20201231 ( Mkr) Cars 2960 Accounts receivable. 360 Cash 660 S: a assets 3980 tkr Equity 1145 (of which this year's res. 250) Loan 1950 Other Liabilities 885 S:a Ek & liabilities 3980 tkr The company has six taxis and hires staff to drive the cars. The customers consist of both private individuals and some of the municipality's schools. For the coming years, the company has budgeted personnel costs to a total of SEK 3,130,000. Other costs for fuel, car maintenance, etc. are believed to amount to SEK 1,225,000. It is estimated that the taxis will generate revenue of a total of SEK 5,300,000, ie approximately SEK 880,000 per car. In total, the cars are depreciated by SEK 550,000 per year. The loan interest rate is budgeted at SEK 90,000 and the bank expects repayments of a total of SEK 1,100,000 during the financial year. No interest income is expected. The company has negotiated shorter credit periods with the municipality for the coming years, which will reduce accounts receivable during the financial year by SEK 70,000. Other liabilities are expected to remain unchanged. a) Budgeted result for the year 2021? tkr. b) Closing balance for the fund after the financial year? tkr. c) Total assets after the end of the financial year? tkr.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A small taxi company presents the following preliminary
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Balance sheet 20201231 ( Mkr) |
|
|
Cars 2960
Cash 660 S: a assets 3980 tkr |
Equity 1145 (of which this year's res. 250) Loan 1950 Other Liabilities 885 S:a Ek & liabilities 3980 tkr
|
The company has six taxis and hires staff to drive the cars. The customers consist of both private individuals and some of the municipality's schools. For the coming years, the company has budgeted personnel costs to a total of SEK 3,130,000. Other costs for fuel, car maintenance, etc. are believed to amount to SEK 1,225,000. It is estimated that the taxis will generate revenue of a total of SEK 5,300,000, ie approximately SEK 880,000 per car. In total, the cars are
a) Budgeted result for the year 2021?
tkr.
b) Closing balance for the fund after the financial year?
tkr.
c) Total assets after the end of the financial year?
tkr.
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