Maria’s Need for Budgeting Case Study - Accounting and Finance Assignment Help

Assignment Task

Assume that all the costs will increase by 3% and revenue will increase by 5% for your March 2022 to October 2022 budget.

All purchases for the breakfast are made on credit one month in arrears.

All labour costs are spread evenly over the 8 months March to October.

All overheads are paid one month in arrears.

Annual rates are paid in two equal instalments April and September.

Assume that opening cash balance is £ 35,000.

The cost of expansion will be paid out of cash as follows: 25% paid in October 2021, 25%

paid in December 2021, 30% paid in January 2022 and the remainder paid in February 2022.

March April May June July August September October

64% 73% 82% 100% 100% 100% 86% 73%

a) Critically evaluate Maria’s need for budgeting – to include planning, control, decision making, communication, and evaluation. Also include limitations of budgeting in your discussion.

b) Prepare a monthly cash budget for the hotel based on the figures for this coming year March 2021 to February 2022 (figures as prior to expansion) and then prepare a monthly cash budget for the first 8 months (March 2022 to October 2022) following the expansion, assuming all goes to plan.

All calculations must be performed in your Excel spreadsheet, and appropriate formulae used.

c) Calculate payback, discounted payback, and NPV (10 years). Assume an expected growth of 5% per year, and the cost of capital is 9%. Also include the advantages and disadvantages of all the three capital investment techniques.

d) Write a brief conclusion assessing whether this is a good investment. (5 Marks)

e) Overall presentation, your report requires

• A table of Contents
• Good Spelling & Grammar
• Appendices that support your argument
• A Bibliography (a written bibliography of sources must be submitted).Please apply the Harvard System for citations and bibliography
• All calculations must be performed on a spreadsheet with appropriate use of formulae demonstrated.

This Accounting and Finance Assignment has been solved by our Accounting and Finance experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinctio.