Executive Summary Budget Analysis On Balance Sheet

Eric Paredes
ID: GEC 00000 D6
Date: 22/05/2017
Certificate IV in Leadership and Management
Assessment Task 3

5a.
Executive summary Budget Analysis on Balance Sheet (financial position)

As of 30 of June 2011 and according to the balance sheet, the financial position of Packett Packaging is the following:
The company has a depreciation in credit of $6,540.00. The total assets of the company including Cash at bank, Petty cash, Stock on hand, Deposits, Trade debtors totalize $190,056.71.
The current total liabilities of the company including Bank loans, Trade creditors, Provision employee entitlement, GST liabilities and payroll liabilities makes a total of $116,828.82.
Regarding the Equity balance of Packet Packaging, including Owner capital/issued

The cost of sales, including COGS gives a total cost of sales of $140,000.01. The equation of Total income – Total cost of sales gives a Gross profit of $146,049.99.
The total expenses we had in the past financial year is $560,344.00. The total gross profit – total expenses gives a loss of $414,294.01.

B. Analysis, including budget analysis, ratios, trends, etc.
Regarding our current ability to pay off the current liabilities, the following is the company’s Short-term solvency or Liquidity

In addition, we have to make sure that the debtor knows "how much, how and when you have to pay". I recommend that our employees should unpaid bills on hand to argue better.
Also, I suggest that It's better not to use negative words such as "unpaid, defaulted, defaulted or debt" when talking to our clients. It is best to use neutral euphemisms as "incidence of charge".
In addition, the first 20 seconds of a call to a debtor are key, since that is the time that the defaulter will devote to form an opinion about you. The language should be hard with the debt, but soft with the debtor. The ideal is to have prepared an argument to direct the conversation towards our goal is to charge.
In case that the process lengthens indefinitely, it warns the debtor that those sentenced to the courts pass to confidential records of risk, so that banks, suppliers and customers will distrust him. As a last resort, if nothing has worked, it may be time to go to specialized collection companies.

Bad debts/write