Larry wants to see a complete sales budget, direct materials budget shown in kilograms and total cost, income statement budget, schedule of cash collections and cah budget for 2023 each by quarter and in total. Larry is also curious about financial ratios.

What is the cash budget and financial ratios?

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Lotus Coffee Inc. Your brother Larry owns a coffee roasting business in Winnipeg - Lotus Coffee Inc. He has been doing the bookkeeping for the business, but he has no accounting experience. Since you are currently taking an accounting course at Red River College Polytechnic, he has asked you to help him. Lotus Coffee imports raw specialty coffee beans from growers in Dak Lak, a province of Vietnam. Specialty coffee is considered to be Arabica coffees highest standard. To be recognized as specialty coffee, the beans must undergo strict evaluation; the growers must fully comply with the prescribed production process, from the stage of cultivation, to harvesting, preliminary treatment, preservation, etc. Once receiving the coffee beans shipment, Lotus Coffee implements strict standards in the roasting process. It then packages these fabulous beans for sale to consumers across Canada. Lotus Coffee packages all its beans into 454-gram Images are used with permission from www.quocloccoffee.com packages. Most of Lotus Coffee's customers are specialty coffee shops. However, it does have a small retail space where customers may come to purchase roasted coffee beans for home use. About 20% of its total sales are paid in cash, and the remaining 80% is billed to coffee shops. Of the sales billed to coffee shops, 60% are collected within the same quarter and the remaining is collected in the following quarter. All expenses are paid the month they are incurred. The company's year-end is September 30th, Lotus Coffee Inc. Your brother Larry owns a coffee roasting business in Winnipeg - Lotus Coffee Inc. He has been doing the bookkeeping for the business, but he has no accounting experience. Since you are currently taking an accounting course at Red River College Polytechnic, he has asked you to help him. Lotus Coffee imports raw specialty coffee beans from growers in Dak Lak, a province of Vietnam. Specialty coffee is considered to be Arabica coffees highest standard. To be recognized as specialty coffee, the beans must undergo strict evaluation; the growers must fully comply with the prescribed production process, from the stage of cultivation, to harvesting, preliminary treatment, preservation, etc. Once receiving the coffee beans shipment, Lotus Coffee implements strict standards in the roasting process. It then packages these fabulous beans for sale to consumers across Canada. Lotus Coffee packages all its beans into 454-gram Images are used with permission from www.quocloccoffee.com packages. Most of Lotus Coffee's customers are specialty coffee shops. However, it does have a small retail space where customers may come to purchase roasted coffee beans for home use. About 20% of its total sales are paid in cash, and the remaining 80% is billed to coffee shops. Of the sales billed to coffee shops, 60% are collected within the same quarter and the remaining is collected in the following quarter. All expenses are paid the month they are incurred. The company's year-end is September 30th,

Answer rating: 100% (QA)

To create a cash budget for Lotus Coffee Inc for the year 2023 we need to consider various aspects based on the provided information The cash budget i... View the full answer