Brooke 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:
• 

• How much

• Employing businesses: 40% of their weekly Salary/Wages, with payments between $1,500 and $100,000 per week

• Eligibility

• A revenue decline of 30% or more
• Annual Turnover (Sales Revenue) between $75,000 and $250 million

• Requirement 1

  Application of analytical processes in a business context. (40%)

• Prepare a cash budget for Unique Flowers for October to December under normal circumstances.
• Prepare a second cash budget for Unique Flowers for October to December that considers a 4-weeks lockdown.

Projected Revenue October $60,000 November 980,000 December 560,000 Sales revenue items of Expenditure it is projected that the following expenditures will be made in October, November and December 1. Fortnightly salaries for each of the employees are $ Harry - $1.500 $ Oscar - $1,500 Mel - $1.000 and - . Josh - 5700 Note: the first payment date is the 6 October 2021. October November December Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su 1 2 3 1 1 2 3 4 5 6 7 1 2 3 4 5 4 5 6 7 8 9 10 8 9 10 11 12 13 14|| 6 7 8 9 10 11 12 11 12 13 14 15 16 17 15 16 17 18 19 20 21 13 14 15 16 17 18 19 18 19 20 21 22 23 24 22 23 24 25 26 27 28 || 20 21 22 23 24 25 26 25 26 27 28 29 30 31 29 30 27 28 29 30 31 2 Further development of a webpage and the online ordering system will cost $25,000 paid in November 3. A new delivery van costing $39,000 will be purchased in November (paid in cash) 4 Updated Staff training (Working COVID Safe and using the online ordering system) in October will cost $12,000 5. The business is currently paying $5.000 per month on rent. 6. The Merchant fee paid to the bank is normally 250 per month 7. At the beginning of October an order $15,000 is placed for flowers that will be received throughout the entire quarter (October to December). The terms of the order is that the payment of $15,000 is made at the end of November Brooke wants to maintain a minimum cash balance of $12.000 every month Brooke must meet the business's cash requirements on a monthly basis, and she needs to find a suitable funding source The emergence of the Delta variant worldwide has put significant risk to people and businesses. The Delta variant is more transmissible than the original strain of the virus and is more likely to cause severe illness. The first sign of trouble for the world came in late March when there was a sudden uptick in new Covic-19 cases in India. Over little more than a month infections rose from about 20.000 daily cases to more than 400.000 a day". (University of Western Australia 1 July 2021, News Article) Australia is lagging behind world vaccination rates Australian states (Victoria, South Australia and New South Wales (NSW) went in lockdown in June and July 2021 due to the spread of the Delta variant. Brooke is concerned that short of medium-term fockdowns will occur in Queensland and affect her business. Brooke is very cautious in managing cash (Budgeting) and concerned about the survival of her business The cash balance at the end of September is $12,000 (This is the opening cash balance for October) . Queensland locks down for four weeks in October, Brooke estimates that projected revenue would reduce by 50 in October, 40% in November and 10% in December Additional information: if Queensland locks down for four weeks Brooke expects the business to be eligible for Budgets: Unique Flowers Canh Bida Oct-Dec 2021 under Normal circumstance OCT NOV DEC Cash Receipts Sales Revenue Total Cash Receipts Cash Payments Salary Harry Mel Oscar Josh Total Salary Webpage and the online ordering system Delivery van Staff training Rent Bank fees Inventory flowers) purchase Total Cash Payments Net Cash Flow Bank Balance at the start of the month Bank Balance at the end of the month L Unique Flowers Cash Budget Oct-Dec 2021 under 4 Weeks lockdown OCT NOV DEC Cash Receipts Sales Revenue COVID 19 Adaption Grant Job Saver Total Cash Receipts Cash Payments Salary Harry