Part A

Using the information provided on current performance (the first 6 months of the year) prepar 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 budget.

Appendix 3 - Brewed Better Coffee Cash Flow CASHFLOW Jul'19 Aug'19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar'20 Apr'20 May'20 Jun 20 [19-20] OPENING BALANCE $50,201 $70.578 $92 654 $115,721 $140, 185 6164 854 $191 471 $217 128 $245,784 $276 441 $310 098 $342 099 Cash Incoming $32-000 13.400 136-go0 $40-800 147.0901 145.0901 Asset sales Debtor receipts 10 10 Total incoming $32.000 $33.400 434,500 135,800.$36.000 138 000 137 040 840 000 842 000 $45 000 $43,400 $45.000 Cash outgoing Purchases ( Stock $5.000 $5,200 45 309 15. 200 #5 200 15 750 15 200 5 200 $5. 200 45.200 45 700 Accountant fees Bank fees & charges $40 140 $40 $50 Interest paid $260 $260 $270 $270 $2701 1270 1280 1280 4260 $280 $300 Credit card foos 140 $40 140 140 140 140 140 140 140 Utilities (electricity. $250 $250 $250 4250 $250 4250 4250 4250 4250 $250 Telephone $100 $100 $100 $109 $100 $100 $100 Lease/loan payments $1,000 $1,000 $1,000 $1,000 $1,000 $2,000 Rent & rates $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Motor vehicle $80 $100 Repairs & $40] $40 350 Stationery & printing $20 $20 $20 $20 $20 $20 $20 Licensing $150 $150 $150 $150 $150 4150 $150 $150 $150 Insurance $500 Superannuateor Income tax 560 $60 $60 560 $75 $75 Wages (including PAYG) No of employees $3.000 43.000 $3.000 $3.000 $3.000 43.000 $3.000 13.000 43.000 13.000 $3.000 Machinery & equipment Total outgoing $11,623 $11 323 511,433 $11,333 $11,333 $11, 383| $11, 343 511, 343 511,343 511,343 $11,398 $12,428 Monthly cash balance $20, 377 $22,077 523,067 $24,467 524,567 526.617 525,657 528.657 530 657 $33 657 532,002 $32.572 CLOSING BALANCE $70,578 $92,654 $115,721 5140.188 $164.854 5191, 471 5217,128 5245.784 5276,441 $310,098 $342 099 $374.671 Appendix 4 - Brewed Better Coffee Shop Ageing Summaries Brewed Better Coffee Shop Ageing Summary Current 1-30 31-60 61-90 >90 Total Michael Hill 0 0 0 11 11 Zara 185 20 25 127 357 Myer 0 0 0 14 14 Officeworks 9.3 0 0 1 10.3 JB Hi-fi 0 0 0 77 77 Chemist Warehouse 11 25 36 Afterpay 8.25 4 12.25 Swarovski 0 12 12 213.55 20 25 271 529.55Appendix 5 - Bank Statements BANK STATEMENT (Brewed Better Coffee Shop) Opening Balance $505,987.76 Date Type Description Debit Credit Balance 01-Feb-20 Sales Cash Sales for the day 990 $506,977.76 02-Feb-20 Sales Cash Sales for the day 1200 $508,177.76 03-Feb-20 Sales Cash Sales for the day 1120 $509,297.76 03-Feb-20 Expense Woolworths expense 100 $509,197.76 04-Feb-20 Sales Cash Sales for the day 1230 $510,427.76 05-Feb-20 Sales Cash Sales for the day 1100 $511,527.76 06-Feb-20 Sales Cash Sales for the day 1340 $512,867.76 07-Feb-20 Sales Cash Sales for the day 860 $513,727.76 07-Feb-20 Expense Coffee Beans from XYZ 125 $513,602.76 08-Feb-20 Sales Cash Sales for the day 670 $514,272.76 09-Feb-20 Sales Cash Sales for the day 500 $514,772.76 10-Feb-20 Sales Cash Sales for the day 230 $515,002.76 11-Feb-20 Sales Cash Sales for the day 1000 $516,002.76 11-Feb-20 Expense Plastic Cups 300 $515,702.76 12-Feb-20 Sales Cash Sales for the day 1300 $517.002.76 13-Fob-20 Sales Cash Sales for the day 1400 $518.402.76 14-Fob-20 Sales Cash Sales for the day 1650 $520.052.76 15-Fob-20 Sales Cash Sales for the day 700 $520,752.76 16-Feb-20 Sales Cash Sales for the day 650 $521,402.76 16-Feb-20 Expense Coffee Beans from XYZ 230 $521,172.76 17-Feb-20 Sales Cash Sales for the day 230 $521,402.76 18-Feb-20 Sales Cash Sales for the day 270 $521.672.76 19-Feb-20 Sales Cash Sales for the day 500 $522,172.76 20-Feb-20 Sales Cash Sales for the day 300 $522,472.76 20-Feb-20 Expense Coffee Beans from XYZ 240 $522,232.76 20-Feb-20 Expense Coffee Beans from XYZ 240 $521,992.76 21-Feb-20 Sales Cash Sales for the day 1990 $523,982.76 22-Feb-20 Sales Cash Sales for the day 1000 $524,982.76 23-Feb-20 Sales Cash Sales for the day 1051 $526,033.76 24-Feb-20 Sales Cash Sales for the day 650 $526,683.76 25-Feb-20 Sales Cash Sales for the day 700 $527,383.76 26-Feb-20 Sales Cash Sales for the day 200 $527.583.76 27-Feb-20 Sales Cash Sales for the day BOD $528,383.76 27-Feb-20 Expense Coffee Beans from XYZ 340 $528,043.76 28-Feb-20 Sales Cash Sales for the day 900 $528,943.76 29-Feb-20 Sales Cash Sales for the day 305 $529.248.76 29-Feb-20 Expense Plastic Cups 300 $528,948.76 Closing Balance $528,948.76Appendix 6 - General Ledger General Ledger (Cash Account) Opening Balance $505,987.76 Date Type Description Debit Credit Balance 01-Feb-20 Sales Cash Sales for the day 990 $506,977.76 02-Feb-20 Sales Cash Sales for the day 1200 $508,177.76 03-Feb-20 Sales Cash Sales for the day 1120 $509,297.76 04-Feb-20 Sales Cash Sales for the day 1230 $510,527.76 05-Feb-20 Sales Cash Sales for the day 1100 $511,627.76 06-Feb-20 Sales Cash Sales for the day 1340 $512,967.76 07-Feb-20 Sales Cash Sales for the day 860 $513,827.76 07-Feb-20 Expense Coffee Beans from XYZ 125 $513,702.76 08-Feb-20 Sales Cash Sales for the day 670 $514,372.76 09-Feb-20 Sales Cash Sales for the day 500 $514,872.76 10-Feb-20 Sales Cash Sales for the day 230 $515,102.76 11-Feb-20 Sales Cash Sales for the day 1000 $516, 102.76 11-Feb-20 Expense Plastic Cups 300 $515,802.76 12-Feb-20 Sales Cash Sales for the day 1300 $517,102.76 13-Feb-20 Sales Cash Sales for the day 1400 $518,502.76 14-Feb-20 Sales Cash Sales for the day 1650 $520,152.76 15-Feb-20 Sales Cash Sales for the day 700 $520,852.76 16-Feb-20 Sales Cash Sales for the day 650 $521,502.76 16-Feb-20 Expense Coffee Beans from XYZ 230 $521,272.76 17-Feb-20 Sales Cash Sales for the day 230 $521,502.76 18-Feb-20 Sales Cash Sales for the day 270 $521,772.76 19-Feb-20 Sales Cash Sales for the day 500 $522,272.76 20-Feb-20 Sales Cash Sales for the day 300 $522,572.76 20-Feb-20 Expense Coffee Beans from XYZ 240 $522,332.76 21-Feb-20 Sales Cash Sales for the day 1990 $524,322.76 22-Feb-20 Sales Cash Sales for the day 1000 $525,322.76 23-Feb-20 Sales Cash Sales for the day 1051 $526,373.76 24-Feb-20 Sales Cash Sales for the day 650 $527,023.76 25-Feb-20 Sales Cash Sales for the day 700 $527,723.76 26-Feb-20 Sales Cash Sales for the day 200 $527,923.76 27-Feb-20 Sales Cash Sales for the day 800 $528,723.76 27-Feb-20 Expense Coffee Beans from XYZ 340 $528,383.76 28-Feb-20 Sales Cash Sales for the day 900 $529,283.76 29-Feb-20 Sales Cash Sales for the day 305 $529,588.76 29-Feb-20 Expense Plastic Cups 300 $529,288.76 Closing Balance $529,288.76Appendix 7 - Balance Sheet - Brewed Better Coffee Shop Balance sheet $ in thousands 2016' 2017 2018 2019 2020 Total cash 1 64,395 73,066 86,333 101.871 Net receivables 9,383 11,556 14.137 18,336 Current assets 78.656 90.114 105.408 124,308 Total assets 129,187 147,461 167,497 197,295 Current liabilities 16,779 19,310 16,756 24,183 Total liabilities 27,130 28,461 44,793 Stockholders' equity 103,860 120,331 139.036 152,502 Total liabilities and 129,187 147.461 167.497 197,295 stockholders' equity "Data not availableAppendix 1 - Brewed Better Coffee Shop Budget V/S Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual INCOME Total Sales 27,140.00 27.630.00 24720.00 25.080.00 24,780.00 24.460.00 25.960 00 28,100.00 24780 00 28,050.60 17.700.00 18.360.DO COGS (Cost of Goods Sold Total COGS 7,015.00 7,870.00 6,406.00 7340.00 6.405.00 6.540.00 6,710.00 7 480.00 6,405.00 6.970.00 4575.00 4.970.00 Gross Profit 20,125 00 19,760.00 18 375.00 1 17.740.00 18,375.00 18,120.00 19,250.00 18,620.00 18,375.00 19,080.00 13,125.00 13,390.00 EXPENSES General & Administrative Bank charges & foos .135.00 1.140.00 1.136,00 1.043.00 1.135.00 1,043.00 1.136.00 1,043 00 1.135.00 1,043.00 1,135 00 1,043.00 Stationery 50 23 50 23 50 23 50 License/insurance fees 450 450 450 450 450 450 450 450 450 450 Advertising 200 100 200 100 200 200 200 100 200 100 Operating Expenses Entertainment/Meals 200 400 200 400 200 400 Travel/Accommodation 150 Cleaning 400 420 -$20 Equipment hire 350 350 350 Motor Vehicle Expenses 325 325 325 325 Website & Social Media 150 150 Employment Expenses Salaries/Wages 1,000.00 1,200.00 1.000.00 1,000.00 1.200.00 1,000.00 1.200.00 PAYE 170 204 170 204 170 170 204 Superannuaten 90 108 108 106 Occupancy Costs Lease 1.800.00 1.800.00 1.800.00 1.800.00 1800.DO 1,800.00 1800.00 1.BOO.DD 1.800.00 1,800.00 1.800.00 Utilities 625 625 625 625 625 6,625.00 625 625 625 625 625 625 Rates 120 120 120 120 120 120 120 120 120 120 120 120 Repair & maintenance 380 380 380 380 380 380 380 380 380 380 Waste 150 177 150 177 150 177 150 177 150 177 150 177 Total Expenses 7,745.00 7,972 00 7.745.00 7,875.00 7,745.00 13.875.00 7,745.00 7.875.00 7,745.00 7.875.00 7,745.DO 7 875.00 Net Profit / (Loss) 12,380 00 11,788.09 10.630.00 9.865.00 10,630.00 4,445.00 11,505.00 10,745.00 10,630.00 11.205.00 5,380.DO 5.515.00 Appendix 2 - Brewed Better Coffee Shop Profit & Loss Statement Profit & Loss statement $ in thousands 2016 2017 2018 2019 2020 Revenues 55,519 66,001 74,989 90,272 110,855 Cost of revenues 21,993 25,691 28,164 35,138 45,583 Research and development 7,137 9,832 12,282 13,948 16,625 Sales and marketing 6,554 8,131 9,047 10,485 12,893 General and administrative 4,432 5,851 6,136 6,985 6,872 European Commission fine 0 0 0 0 2,736 Total costs and expenses 40,116 49,505 55,629 66,556 84,709 Income from operations 15,403 16.496 19,360 23,716 26,146 Other income (expense), net 496 763 291 434 1,047 Income before income taxes 15,899 17,259 19,651 24,150 27,193 Provision for income taxes 2,739 3.639 3,303 4.672 14,531 Net income 12,733 14,136 16,348 19,478 12,662