Task 1
Your Tasks:
You are required to complete a draft budget based on information and factors that were determined during an executive meeting at Hotel Futura.
A. Access the excel spreadsheet named “Task 1-Hotel Futura Budget_Forecast”. The first tab on this spreadsheet is labelled “Departments Small” and shows the existing budget figures for the 2016 financial year.
B. Use the template “Draft Budget” on the second tab of the spreadsheet and perform the calculations below using basic formulas.
Task 2
Your Tasks:
You have provided the chief financial controller with the draft budget for 2017. Following the recent executive meeting where the draft budget was discussed, you are now required to establish the final budget reflecting the changes based on the latest actuals and variances as well as major road works which will affect Futura Restaurant and Bar during 2017.
A. Access the excel spread sheet named “Task 2-Budget Futura_Rest.&Bar”. The first tab on this spreadsheet is labelled “Futura Restaurant and Bar” and shows the Draft budget figures for the 2017 financial year.Management Assignment Help
1. Calculate the anticipated Food revenue for each month and the yearly total.
2. Calculate the anticipated Beverage revenue per month and the yearly total.
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3. Calculate the Total Revenue for each month and the yearly total.
4. Calculate the overheads total for each month (at 90% of turnover for each for each month with 1000 or more customers and at 96% for each month with less than 1000 customers) and the yearly total.
5. Calculate the profit for each month and the yearly total.
6. Calculate the Cost of Goods Sold for food and beverages, given a combined percentage of 32%.
7. Calculate the staff costs for each month at 31% for each month with 1000 or more customers and at 35% for each month with less than 1000 customers.
8. Calculate the ‘Other overheads” for the operation.
9. Print a copy of the revised budget.
Scenario 1:
The finance team has created budget forecasts for Hotel Futura based on carefully researched factors for the last 3 years and these were always very accurate. The recent budget which included all departments of the hotel was implemented 3 months ago and the forecasted figures for Food Cost and COGS/Beverages in both the Restaurant and the Bar Operations have blown out by nearly 4.5 percent.
What could be the reasons for this? List 5 examples of areas you would investigate and explain why.Management Assignment Help
Answer:-
1. Financial control and management would be very important aspect for this hotel as cost minimisation would be given preference. Now in this section several aspects associated with financial control would be discussed.
2. Now in this section needs and uses of financial statements are being discussed in : -Financial statements -prices -profit
3. Cost is defined as the expense to a hotel or restaurant for goods or services when the good are consumed or the services are rendered.
4. Value-Based pricing: How much customers are willing to pay for the food and service for this hotelis the main theme of this value based pricing.
5. Managements system of the hotel, the hotel should have the finance team as usual and spend some of budget for the financial team to let them manage and implement for run the business.
Scenario 2:
Hotel Futura has successfully operated for 7 years. During this period, overall turnover has doubled, and during the past 3 budget periods annual budgets have been increased by 15% each year which was exceeded each time. During the last 6 months however, management has noticed that the opposite trend seems to be occurring now.
List 5 external factors which could contribute to this and explain which methods you would use to determine this.
keeping the old budget and trying, unrealistically, to meet it. You are better off amending the budget to reflect both internal and external changes on a regular basis. This will ensure that the budget remains up-to-date and relevant throughout the year.In order to amend the budget, analysis should be completed of the business internally as well as any external factors which may have an impact.Management Assignment Help