Income Statement	Budget for next year
Revenue		$160,000
Less Operating Expenses
Selling Expenses
Advertising	$10,500	$10,500	Increase by 5%
Administration Expenses
Depreciation	$14,000		15% diminishing value
Insurance	$5,800		Increase by 3%
Utilities	$3,800		Increase by 8%
Rent	$39,600		Increase by 2%
Wages	$18,000		Decrease by 5%
Office expenses	$15,261	$96,461	3% of revenue
Financial Expenses
Bank fees	$1,200		Decrease by 2%
Interest on loan	$26,400	$27,600	No change
Net Profit		$25,439

there no other information provided on this

Balance Sheet:

Balance Sheet
Current Assets
Cash		$22,619
Accounts Receivable		$6,270	$28,889
Non-Current Assets
Equipment	$108,000
Accumulated Depreciation Equipment	-$28,600	$79,400
Total Assets			$108,289
Current Liabilities
GST Payable		$2,850
Non-Current Liabilities Loan		$30,000
Total Liabilities			$32,850
Net Assets			$75,439
Capital
Opening Capital		$50,000
Net Profit		$25,439	$75,439

Case Study Details

Betty's Bookkeeping offers bookkeeping services to customers. This business is registered for GST and reports GST on the accruals basis to the ATO each quarter. Betty has been in operation for 3 years now and would like to see an increase in her profits from last year by at least 10%. The hourly rate charged to customers for bookkeeping services is $165 (including GST) and all customers are on account with 14-day terms.

Betty's Bookkeeping is busiest during the 4 months when it is tax time (July - October) and earns more than 50% of the annual income in this period. From July to October Betty employs staff members to help her handle the client demand and keep on top of her work. Based on last year's results and growing client numbers, Betty is expecting to charge the following hours for her clients in the first quarter of the year:

July - 150 hours

August - 200 hours

September - 180 hours

In the second quarter Betty expects October's hours to be the same as in August but then things start to quieten down in November and December. The hours will drop from November onwards and Betty expects November's hours to be 50% less than the hours in October and December's hours to be 50% less than the hours in November.

Betty takes 1 month off over December and January for Christmas and a holiday each year so usually the hours in January are the same as the hours in December. The hours each month from January onwards are very similar, except for the two months' when the BAS is due for her clients (February and June). Betty usually charges around 50 hours per month for the third and fourth quarter, with the hours in February and June being 100% more the other months.

Collection rates for accounts receivable are currently set as below:

50% in the current month charged

40% in the following month

10% in the second month following

The actual revenue for May was $7,700 (including GST)

The actual revenue for June was $11,000 (including GST)

As this work is quite seasonal and clients are on an account basis, cash flow could be an issue at times, Betty would like for the closing cash balance to not fall below $25,000 at any stage so she has sufficient business funds for if any unexpected expenses occur.

you must prepare revenue budget, account receivable collection schedule, operating expenses and GST budget, Cash budget, Income Statement and Balance Sheet