The business model

In order to illustrate the money movements in a business, we will use a business model.

The model illustrates that every business starts with capital (Circle 1) and that this is introduced into the business as cash (Circle 2). This in turn is invested either into items which are:

1. not intended for resale (Circle 3), the fixed assets, also called the capital expenditure or

2. into items intended for resale. These are set out as Circles 4, 5, 6, 7, 8 less 9, and its is these items which go into the investment area termed the working capital

Task 1

To calculate balance profit in the accounting period. A gain 20,0 th UAH.,VAT – 20%, com-exp – 1,3th UAH., cost– 12,0 th UAH.Other non-realization profits – 2,1 th UAH., losses – 1,4 thUAH.To define influence of factors on profitability if plan the profit 12,3 th UAH.,full cost price– 14,0 thousand UAH.

FACT

1)Fact sales without VAT=20000-20000*0,2=16^th UAH

2)Income from sales=16000-1300-12000=2,7^th UAH

3)Balance profit=2700+2100-1400=3,4^th UAH

4)Fact Sales profitability=Income from sales/Cost price of realized prod.+commercial expences)*100%

=2700/(12000+1300)*100%=20,3%

5)Plan Sales profitability=12300/14000*100%=87,85%

6)∆Profitability=Prfact-Prplan=20,3-87,9= -67,55%

Influence of factors on profitability of production:

Profit

Cost price

Checking ∆Pr=-68,57+1,02=67,55%

Conclusions

the profit on production realization is made less than it was planned on 9,6^th UAH (12,3th -2,7^th)so plan is underperformed on 67,55 %.There was two factors that influenced on profitability of production. Cost price was decreasing on 700 UAH (14^{th –} 13,3th)and it increased profitability on 1.02%,but non-received profit 9,6^th UAH was the reason of decreasing profitability of production on 68,57%/

Task2 Prepare the direct materials budget

ending inventory-10 % of next,for the 4th quarter 350 units. 4 kg of materials needed per unit at a cost of 1,000 per kg.

Assuming that 50% of each quarter's purchases are paid in the quarter, with the remainder being paid in the following quarter

	Quarter
					TOTAL
Units to be produced

Direct materials budget

	Quarter
					TOTAL
Units to be produced material needs per unit(kg)					X4
Total needs Desired ending inventory
Total production needs Less: beginning inventory	4360 400	4040 360	4800 440	4350 400	16350 400
Material to be purchased Purchase cost	3960	3680	4360	3950	15950 x1
Purchase cost

Schedule of expected cash disbursements

	Quarter
					TOTAL
Accounts payable at the beginning of year	-				-
1st qtr purchases
2d qtr purchases
3d qtr purchases
4th qtr purchases
Total disbursements

Дата добавления: 2015-11-14