Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ALL NATURAL See MySou for due date & submission details You are an accountant working for a local accounting firm based in Burleigh, Gold Coast.

image text in transcribed
ALL NATURAL See MySou 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 Juiciestor 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 themselves: 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Thomas H. Beechy

5th Edition

0071091319, 978-0071091312

More Books

Students also viewed these Accounting questions

Question

What does this look like?

Answered: 1 week ago