A JuicieS Sales Budget Budgeted sales in cartons Selling price per carton Percentage of sales collected in the quarter of sale Percentage of sales collected in the quarter after sale Production Budget Percentage of next quarters sales in ending finished goods inventory Direct Materials Budget Kilos offruit per carton Cost per Kilo of fruit Percentage of next quarter's production needs in ending inventory Percentage of purchases paid in the quarter purchased Percentage of purchases paid in the quarter after purchase Direct Labour Budget Direct labour-hours required per carton Direct labour cost her hour Manufacturing Overhead Budget Variable manufacturing overhead per direct labour-hour Fixed manufacturing overhead per quarter Depreciation per quarter Selling and Administrative Expense Budget Variable Selling and administrative expense per carton Fixed selling and administrative expense per quarter: Advertising Owners Salaries Insurance Property Tax Depreciation Cash Budget Minimum cash balance Equipment purchases Interest rate per quarter (simple interest only not compound) Balance Sheet, December 31, 2022 Current Assets Cash Accounts Receivable Raw materials inventory (21 000 kg) Finished Goods inventory (2 000 cartons) Total Current Assets Plant and Equipment Land Buildings Accumulated Depreciation Plant and Equipment, Net Total Assets Current Liabilities Accounts payable Retained Earnings Total Liabilities 1h- 'lh-'U'l-'LD- mmmmm S S 5 Budget Assumptions All 4 Quarters 60.00 40% 60% 20% 10.00 1.50 15% 80% 20% 0.25 25.00 4.00 30,000.00 5,000.00 3.00 10,000.00 70,000.00 4,000.00 2,000.00 10,000.00 9% 25,000.00 50,000.00 16,800.00 120,000.00 200,000.00 560,000.00 ($300,000.00) 25,800.00 646,000.00 S $ $ Quarters 1 Z 3 4 10,000 2,000 2,000 12,000 5,000.00 S 150,000.00 S 5,000.00 S 5,000.00 211,800.00 460,000.00 671,800.00 671,800.00 ACCT6002 Managerial Accounting MAJOR ASSIGNMENT Juicies Weighted 30% of overall marks for the unit ALL NATURAL See MySCU for due date & submission details You are an accountant working for a local accounting firm based in Burleigh, Gold Coast. You have been assigned a new client, Juiciest boutique, family owned ethical business who hand crafts 100% fruit icy poles Judy and her husband John launched their business in 2020. They are originally from Hawaii and ran a similar business in Hawaii. They were in awe of the top quality fruit available here in Australia and identified a gap in the market for a range of quality ice blocks. They have requested for you to prepare a master budget for Juiciestfor 2023 which allows them to plan their financial resources, work through "what if scenarios and help them to make informed decisions to ensure their business continues to grow and operate successfully into the future The following information has been gathered about their business primarily from the owners hemselves: . Operations: Juiciest operate on a calendar-year basis (Jan - Dec). The business runs out of owned premises in Burleigh, Gold Coast. Their sales team have provided the expected quarterly sales per carton of icy poles. Each carton has 30 ice blocks. Plant and Equipment: Depreciation on the Plant and equipment totals $5,000 per quarter. Cash collections: The Company expects to collect 40% of its credit sales in the quarter of sale and the remaining 60% of credit sales will be collected in the quarter after sales. The company's bad debts are negligible. . Payments: The Company plans to pay for 80% of its material purchases within the quarter of purchase and the remaining 20% in the following quarter Ignore GST and Income Tax. All of the budget assumptions have been provided to you in a budget template ready for you to use and download from BlackBoard to prepare the Master Budgets. ACCT6002: Assignment Overview Page 1 of 6 REQUIRED: PART ONE: Prepare a Master Budget Using the information provided, prepare a master budget for Juiciest for the twelve-month period from January 2023 to December 2023 Include the following: 1. A sales budget 2. A production budget 3. A direct materials budget 4. A direct labour budget 5. A manufacturing overhead budget 6. An ending finished goods inventory budget 7. A selling and administrative expense budget 8. A quarterly cash budget 9. A budgeted Income Statement 10. A budgeted Balance Sheet Your budget spreadsheet must be submitted in Excel Format (not as an appendix to your report in a WORD document). The first worksheet should contain the budget assumptions outlined in this overview sheet. All future worksheets need to be linked to this data. Show all calculations and use Excel functions. Marked will be deducted if numbers are not calculated using formulas. ACCT6002: Assignment Overview Page 1 of 6 PART TWO: Analysis & Recommendations Write a report (Maximum 1,500 words, 10% (+/-) will be accepted with no penalty) for the owners of Juiciesthe report should include: " An overview of the expected results the 2023 year including total revenue, operating expenses and expected cash position; An analysis of the current busin ses and cash low) and recommendations regarding how to improve the profitability and financial sustainability of the business. Use industry data (e.g. comparative product comparison, consumer confidence, labour rates, pricing and market analysis) to support any recommendations for changes. Identification of two major behavioural considerations or risks that you need to bring to owners attention w nting the master budget in 2023. Quantify these risks in terms of their imp otivation) and the profit and loss statement (for example, loss of income due to staff disengagement). Provide two (2) recommendations on how to mitigate each risk. . Explain how the master budget you have prepared can assist the business owners consider and plan for different them to pivot to according to changes in economic conditions. Inclu le scenario that you can easily produce by modifying assumptions in the budget schedules you have Ensure that you use visual aids such as tables and graphs to enhance your report presentation The report needs to be submitted as a WORD (not PDF) document. ACCT6002: Assignment Overview Page 1 of 6