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 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 purchases its coffee beans in kilogram quantities (1000 grams = 1 kilogram). Shipments from Vietnam can be unreliable, so Larry prefers to have as much raw material (unroasted beans) on hand as possible. He likes to maintain a balance of raw materials equal to approximately 60% of next quarter sales. All the roasted beans are sold in the same quarter they are made to maintain freshness. He expects sales for the first quarter in 2024 to be 65,000 packages Larry plans to replace the roasting equipment in May 2023 with a brand-new machine that will produce even more aromatic coffee beans starting in the next fiscal year. The expected cost is approximately $100,000 and will be paid for in cash. The company needs to repay $12,000 per month on the long-term non-interest-bearing loan from Larry's father. 

  

In addition, he pays himself dividends of $15,000 per month in lieu of salary. Lotus Coffee has a $250,000 line of credit that can be drawn from for short-term financing. Interest is paid quarterly, and it is calculated as 4.5% per year on the outstanding balance at the end of the previous quarter. The line of credit balance is zero at the beginning of fiscal 2023. Any excess cash is immediately used to pay down the line of credit. Find the budgeted income statement??

Expected package sales Unit selling price Staff costs Operating Expenses Depreciation expense Raw material cost per kilogram Q1 Oct-Dec 60,000 $10 $11,000 $6.60 2023 Operating Projections Q3 Apr-Jun Q2 Jan-Mar 50,000 $10 Estimated to be 20% of sales Estimated to be 30% of sales $11,000 $11,000 $6.60 $7.70 40,000 $10 Q4 Jul-Sep 40,000 $10 $11,000 $7.70