PERTEMUAN 11 Chapter 11 BUDGETING and INTERNAL CONTROLS Matakuliah : V0282 - Manajemen Akuntansi Hotel Tahun : 2009 - 2010 PERTEMUAN 11 Chapter 11 BUDGETING and INTERNAL CONTROLS

Zheng Chung is the managing owner of the Stillwater Grill Zheng Chung is the managing owner of the Stillwater Grill. This year, 2010, was a good year for him. Now he is preparing his 2011 budget. Using the information Zheng believes will be true, help him complete the dollars and percentage amounts in the budget worksheet that follows, then answer the question he has about next year. Beside upon his sales histories, sales projections, and cost records, Zheng predicts that in 2011 his operation will experience: A 6% increase in food sales A 4% increase in beverage sales No change in food or beverage product cost percentage Salaries and wages that will increase 3.5% Benefits that will increase 10% An increase in all other operating expenses (except depreciation) of 2% Interest payment for loans that will total $1,100 per month entry A depreciation schedule that’s calls for a $750 per month entry Tax payments that are estimate to be 25% of income before income taxes

BUDGET WORKSHEET FOR SEPTEMBER 2011 THE STILLWATER GRILL BUDGET WORKSHEET FOR SEPTEMBER 2011 2010 Actual % 2011 Budget SALES Food 346,500 75.3 Beverage 113,500 24.7 Total Sales 460,000 100.00 COST OF SALES 116,500 33.6 18,750 16.5 Total Cost of Sales 135,250 29.4 GROSS PROFIT 230,000 66.4 94,750 83.5 Total Gross Profit 324,750 70.6

OPERATING EXPENSES Salaries and Wages 72,500 15.8 Employee Benefits 12,400 2.7 Direct Operating System 16,550 3.6 Music and Entertainment 3,200 0.7 Marketing 6,650 1.4 Utility Services 11,950 2.6 Repairs and Maintenance 3,500 0.8 Administrative and General 12,750 2.8 Occupancy 30,000 6.5 Depreciation 8,400 1.8 Total Operating Expenses 177,900 38.7

Operating Income 146,850 31.9 Interest 14,000 3.0 Income Before Income Taxes 132,850 28.9 Income Taxes 33,213 7.2 Net income 99,638 21.7

What will be Zheng’s total sales in 2011? What will be Zheng’s total cost of sales income 2011? What will be the amount Zheng will spend on salaries, wages, and employee benefits in 2011? What is the estimate amount of income taxes Zheng will pay in 2011? What does Zheng estimate will be his operation’s net income percentage (profit margin) in 2011? How will that complete to his 2010 percentage?