Part A

Using the information provided on current performance (the first 6 months of the year) prepare a budget for the remaining 6 months of the year. In preparing the budget:

• The business will be closed for 2 weeks of holidays in January
• Easter holidays will be in April
• For the first three months the sales will decrease by 5% consistently and then will increase by 2.5%
• The general administrative expenses will increase by 1% every month
• The operating expenses, employment expenses and occupancy costs will remain consistent

Your response will require the use of Microsoft Excel (or similar) spreadsheet programs or a suitable accounting software package to develop a budge

Part B

The owner of Brewed Better Coffee Shop is considering expanding the business by taking over the lease from the shop next door. It is expected that the combined floor space should allow the business to serve twice as many customers as before. With all things considered, the business should be ready to expand by May. In order to make an informed decision about taking on the expanded lease you are required to modify the budget to include:

• An initial one-off expense for shop fit out of $120,000
• Trading to commence May 1

Your response will require the use of Microsoft Excel (or similar) spreadsheet programs or a suitable accounting software package to develop a revised budget.

Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual 27,140.00 27,630.00 24,780.00 25,080.00 24,780.00 24,880.00 25.960.00 26,100.00 24.780.00 26,050.00 17.700.00 18,360.00 7,015.00 20,125.00 7.870.00 19,760.00 6.405.00 18,375.00 7,340.00 6,405.00 6,540.00 17,740.00 18,375.00 18,320.00 6.710.00 19,250.00 7.480.00 18,620.00 6.405.00 18,375.00 6,970.00 4.575.00 4,970.00 19,080.00 13,125.00 13,390.00 1,140.00 1,135.00 SO 450 200 1,135.00 SO 450 200 1,043.00 23 450 100 1,135.00 SO 450 200 1,043.00 23 450 100 1,135.00 SO 450 200 1,043.00 23 450 100 1,135.00 SO 450 200 1,043.00 23 450 100 1.135.00 SO 450 200 1.043.00 23 450 450 100 100 400 0 200 150 400 0 200 150 200 150 400 0 INCOME Total Sales COGS (Cost of Goods Sold) Total COGS Gross Profit EXPENSES General & Administrative Bank charges & fees Stationery License/insurance fees Advertising Operating Expenses Entertainment Meals Travel Accommodation Cleaning Equipment hire Motor Vehicle Expenses Website & Social Media Employment Expenses Salaries/Wages PAYE Superannuation Occupancy Costs Lease Utilities Rates Repair & maintenance Waste Total Expenses Net Profit/(Loss) 400 400 200 150 400 350 325 150 400 350 420 350 325 150 400 0 420 350 325 150 420 350 325 150 200 150 400 350 325 150 400 0 420 350 325 150 200 150 400 350 325 150 400 0 420 350 325 150 350 325 150 420 350 325 150 350 325 150 325 150 1,200.00 1,000.00 170 90 1,200.00 204 108 1,000.00 170 204 1,000.00 170 90 1,200.00 204 108 1,000.00 170 90 1,200.00 204 108 1,000.00 170 90 1,200.00 204 108 1.000.00 170 90 1.200.00 204 108 108 1,800.00 625 120 380 150 7,745.00 12,380.00 1,800.00 625 120 380 177 7,972.00 11,788.00 1,800.00 625 120 380 150 7,745.00 10,630.00 1,800.00 625 120 380 177 7,875.00 9,865.00 1,800.00 625 120 380 150 7,745.00 10,630.00 1,800.00 6,625.00 120 380 177 13,875.00 4,445.00 1,800.00 625 120 380 150 7,745.00 11,505.00 1,800.00 625 120 380 177 7,875.00 10,745.00 1,800.00 625 120 380 150 7,745.00 10,630.00 1,800.00 625 120 380 177 7,875.00 11,205.00 1.800.00 625 120 380 150 7,745.00 5,380.00 1,800.00 625 120 380 177 7.875.00 5,515.00 Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual 27,140.00 27,630.00 24,780.00 25,080.00 24,780.00 24,880.00 25.960.00 26,100.00 24.780.00 26,050.00 17.700.00 18,360.00 7,015.00 20,125.00 7.870.00 19,760.00 6.405.00 18,375.00 7,340.00 6,405.00 6,540.00 17,740.00 18,375.00 18,320.00 6.710.00 19,250.00 7.480.00 18,620.00 6.405.00 18,375.00 6,970.00 4.575.00 4,970.00 19,080.00 13,125.00 13,390.00 1,140.00 1,135.00 SO 450 200 1,135.00 SO 450 200 1,043.00 23 450 100 1,135.00 SO 450 200 1,043.00 23 450 100 1,135.00 SO 450 200 1,043.00 23 450 100 1,135.00 SO 450 200 1,043.00 23 450 100 1.135.00 SO 450 200 1.043.00 23 450 450 100 100 400 0 200 150 400 0 200 150 200 150 400 0 INCOME Total Sales COGS (Cost of Goods Sold) Total COGS Gross Profit EXPENSES General & Administrative Bank charges & fees Stationery License/insurance fees Advertising Operating Expenses Entertainment Meals Travel Accommodation Cleaning Equipment hire Motor Vehicle Expenses Website & Social Media Employment Expenses Salaries/Wages PAYE Superannuation Occupancy Costs Lease Utilities Rates Repair & maintenance Waste Total Expenses Net Profit/(Loss) 400 400 200 150 400 350 325 150 400 350 420 350 325 150 400 0 420 350 325 150 420 350 325 150 200 150 400 350 325 150 400 0 420 350 325 150 200 150 400 350 325 150 400 0 420 350 325 150 350 325 150 420 350 325 150 350 325 150 325 150 1,200.00 1,000.00 170 90 1,200.00 204 108 1,000.00 170 204 1,000.00 170 90 1,200.00 204 108 1,000.00 170 90 1,200.00 204 108 1,000.00 170 90 1,200.00 204 108 1.000.00 170 90 1.200.00 204 108 108 1,800.00 625 120 380 150 7,745.00 12,380.00 1,800.00 625 120 380 177 7,972.00 11,788.00 1,800.00 625 120 380 150 7,745.00 10,630.00 1,800.00 625 120 380 177 7,875.00 9,865.00 1,800.00 625 120 380 150 7,745.00 10,630.00 1,800.00 6,625.00 120 380 177 13,875.00 4,445.00 1,800.00 625 120 380 150 7,745.00 11,505.00 1,800.00 625 120 380 177 7,875.00 10,745.00 1,800.00 625 120 380 150 7,745.00 10,630.00 1,800.00 625 120 380 177 7,875.00 11,205.00 1.800.00 625 120 380 150 7,745.00 5,380.00 1,800.00 625 120 380 177 7.875.00 5,515.00