Question

Henri Barrista, café proprietor, is preparing a set of budgets for the next six months (period ended 31

December). Information given is:

	$
Expected sales	280,000
Cost of goods sold	36,000
Administration expenses	6,000
Selling expenses	11,000
Sales staff salaries	90,000
Manager’s salary	45,000
Financial expenses	10,000
Depreciation on equipment	12,000
New coffee machine (September)	11,500
Workcover	4% x salaries
Superannuation	9% x salaries
Inventories on hand at start	27,000
Inventories on hand at end	31,500

All sales revenue is cash and all expenses will be paid in the period and GST will need to be added where appropriate.

Prepare the following budgets: sales, cost of goods sold, purchases, cash and income statement.

Answer 1