Highlights
Task:
The Overall Scenario
You work for a management consulting firm and have 3 client jobs to complete:
1. Prepare a cash budget for XYZ Pty Ltd and provide associated advice on required financing;
2. Prepare and interpret a variance analysis for ABC Pty Ltd; and
3. Advise LMN Pty Ltd on sources of finance.
Job Details
1. XYZ Pty Ltd operates in a seasonal industry with a sales peak in spring. Budgeted sales, along with budgeted raw materials and labour costs are shown in the table below. Extract from budgeted income statement
Month Sales Labour and materials
May $150,000 $105,000
June $160,000 $112,000
July $210,000 $147,000
Aug $300,000 $210,000
Sep $400,000 $280,000
Oct $500,000 $350,000
Nov $340,000 $238,000
Dec $200,000 $140,000
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