Sutea is the owner of Unique Flowers, located at Sunny Bay Queensland (QLD), Australia. Unique Flowers is
Question:
Sutea is the owner of Unique Flowers, located at Sunny Bay Queensland (QLD), Australia. Unique Flowers is a family business that she has operated successfully as a sole trader (Business has ABN and registered for GST) since the 1990's.
Unique Flowers is a successful business and is well known in the local area, due to its high-quality floral arrangements, prompt delivery and friendly service. Sutea is the florist, and she employs four people to work with her in the business. Harry, the delivery driver, is employed full-time; Mel, the bookkeeper, is employed part-time; Oscar the shop assistant is employed full-time; and Josh, the cleaner is employed as a casual. All employees have worked with Sutea since the business opened its doors, except Josh who joined the team on the 1st of January 2021.
After the outbreak of COVID-19 in 2020, which had a large impact on the business, Unique Flowers is looking to rebound in 2021. Sutea learnt during 2020 that a focus on her financial position was the best way to navigate the uncertainty.
Due to forced closures of her business in 2020 (March- June), Sutea went through a period of problems with her cash flow. She did not have enough money to meet her financial obligations, including paying the employees, the rent, and the other business outgoings. Going forward, she is looking to put those problems behind her but will be cautious in her financial planning.
Sutea is planning to change the way she operates her business with the addition of online ordering and no-contact deliveries.
Sutea has asked Mel for some financial information and was presented with the following:
The cash balance at the end of September is $12,000 (This is the opening cash balance for October)
The projected sales revenue (all sales are cash) for October to December is as follows:
Expert Answer:
Principles Of Taxation For Business And Investment Planning 2024
ISBN: 9781266838750
27th Edition
Authors: Sally Jones, Shelley Rhoades-Catanach, Sandra Callaghan, Thomas Kubick
