QI. Below are the budgeted revenue and expenses for a restaurant for the year 2022. RM (*000) 71,250 Revenue | Sales RM (*000) 28,500 4,200 17,100 Expenses Cost of supplies Salaries Wages Depreciation Repair and Maintenance Advertisement Laundry |Interest on Loan Miscellaneous expenses Utilities 900 3,000 1,500 200 2,200 2,300 650 Below are the additional information given to you for further analysis: The expected pattern of sales for the year 2022 are as follows and it is the company policy to analyse based on quarters. Percentage of sales 24 20 24 32 Quarter 2 3 4 75% of the sales are on a cash basis and the balance will be received in the next quarter. The costs of supplies vary directly with sales and a constant stock value of supplies are kept. 20% of purchases of the food and drinks are for cash and the balance are paid during next quarter. 80% of the repairs and maintenance item is for a major redecoration to be paid in the third quarter. Wages, which are variable with sales, are paid in the same quarter which they are incurred. Utilities and interest on loan are paid half yearly in the first and third quarters.
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.
![Q1.
Below are the budgeted revenue and expenses for a restaurant for the year 2022.
RM (*000)
71,250
Revenue
Sales
RM ('000)
28,500
4,200
17,100
Expenses
Cost of supplies
Salaries
Wages
Depreciation
Repair and Maintenance
Advertisement
Laundry
Interest on Loan
Miscellaneous expenses
Utilities
900
3,000
1,500
200
2,200
2,300
650
Below are the additional information given to you for further analysis:
The expected pattern of sales for the year 2022 are as follows and it is the
company policy to analyse based on quarters.
Percentage of sales
24
Quarter
1
2
20
3
24
4
32
75% of the sales are on a cash basis and the balance will be received in the
next quarter.
The costs of supplies vary directly with sales and a constant stock value of
supplies are kept. 20% of purchases of the food and drinks are for cash and the
balance are paid during next quarter.
80% of the repairs and maintenance item is for a major redecoration to be paid
in the third quarter.
Wages, which are variable with sales, are paid in the same quarter which they
are incurred.
Utilities and interest on loan are paid half yearly in the first and third quarters.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc6e8f19-9b2c-41ec-9892-83a9a96adaec%2Ff96ec396-6566-4489-aa37-12180c753f9d%2F0rqiq4p_processed.png&w=3840&q=75)
![All other expense payments are made evenly over the year.
Below are the opening balances:
Items
RM (*000)
Trade receivables
Trade payables
Bank overdraft
4,750
7,050
800
Required:
Prepare a tabular form of the cash budget for the four quarters of the year 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc6e8f19-9b2c-41ec-9892-83a9a96adaec%2Ff96ec396-6566-4489-aa37-12180c753f9d%2F1j3h8eg_processed.png&w=3840&q=75)
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