Fact Sheet Jan-2019 Feb-2019 Mar-2019 Apr-2019 May-2019 Jun-2019 Jul-2019 Aug-2019 Sep-2019 Oct-2019 Nov-2019 Dec-2019 Sales Volume - Sunglassses 160 176 151 / 126 116 99 84 74 L 171 201 216 246 Sales Volume - Prescription glasses | 99 109 120 | 132 138 121 13 154 169 186 | 231 226 Service Volume - No. of Clients 90 99 109 120 125 110 121 140 154 169 210 205 Selling Price - Sunglasses Cost Price - Sunglasses $ 200.00 $ 60.00 Selling Price - Prescription glasses Cost Price - Prescription glasses $ 150.00 $ 80.00 Service Revenue $ 75.00 Number of Sale Assistants: Wage Rate per Month 2.00 4,000 $ Number of Office Staff: Wage Rate per Month $ 1.00 4,500 Number of Optometrists Wage Rate per Month 2.00 6,500 $ Additional Information: Both James and Olivia are partners within the business and draw an amount of $2000 per month each. They plan on increasing their drawings to $4000 each per month starting from January of 2020. As the manager, James keeps a close eye on inventory management and would like to always maintain a monthly ending inventory requirement of 30% of next month's sales. Additionally, all purchases with the current supplier are on a credit basis with 50% of the account settled in the same month of purchase and the remaining 50% settled one month after the month of purchase. The business typically will have 80% of their sales as cash, with the remaining 20% on credit. Of the credit sales, 70% is collected in the month of sale, 20% is collected one month after the sale, and 10% is collected two months after the sale. All customers coming in for an eye check pay for the service in cash 100% of the time. The business has a range of equipment and other fixed assets such as: Specialised optometry equipment to provide the comprehensive eye-tests. The total cost of equipment is $11000, and it is generally expected to last 5 years. Other office equipment has a historical cost of $25000, and depreciates at 25% per annum. Store furniture and fittings were originally purchased at $65000, and depreciate at 10% per annum. All fixed assets have $0 residual value and are depreciated using the straight-line method of depreciation. After the 1st year of the new project (i.e., in 2021), all service and sales volume is expected to increase by 5% per month based on corresponding 2020 monthly estimates. Other Fixed Costs: Marketing expense of $900 per annum is paid evenly across 12 months. $3000 of general business insurance is paid annually in July every year. Bank account fees work out to be $60 per month and are paid at the start of each quarter. On average, the business purchases and expenses $100 of office supplies every month. Council rates are $1200 per annum and are usually paid in December each year. Rent is paid at the start of each quarter and works out to be $6400 per month. Water, gas and electricity are combined under one utility expense which adds up $500 per quarter and is usually paid at the end of each quarter. **Note: Quarter 1 runs from 1 Jan-31 Mar; Quarter 2 runs from 1 Apr - 30 Jun; Quarter 3 runs from 1 Jul - 30 Sep; Quarter 4 runs from 1 Oct - 31 Dec. CASH BUDGET | Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-201 Jul-201 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 TOTAL OPENING CASH BALANCE CASH INFLOWS: TOTAL CASH AVAILABLE: CASH OUTFLOWS CLOSING BANK BALANCE