Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello Sir/Madam. I am new to accounting and I hope that you will help me with my questions. I hope that you will provide in

image text in transcribedimage text in transcribedimage text in transcribed

Hello Sir/Madam.

I am new to accounting and I hope that you will help me with my questions.

I hope that you will provide in depth explanation of the answers.

Can you also provide pictures with the answers so that I will be able to understand what is happening?

I am very sorry as I can not provide more information as I do not have more information to be provided to you sir/madam.

What is stated below is all of the information that I have got.

Thank you very much for your help.

Business Background Information:

Sutea is the owner of Unique Flowers, located at Sunny Bay Queensland (QLD), Australia. Unique Flowers is a family business that she has operated successfully as a sole trader (Business has ABN and registered for GST) since the 1990's.

Unique Flowers is a successful business and is well known in the local area, due to its high-quality floral arrangements, prompt delivery and friendly service. Sutea is the florist, and she employs four people to work with her in the business. Harry, the delivery driver, is employed full-time; Mel, the bookkeeper, is employed part-time; Oscar the shop assistant is employed full-time; and Josh, the cleaner is employed as a casual. All employees have worked with Sutea since the business opened its doors, except Josh who joined the team on the 1st of January 2021.

After the outbreak of COVID-19 in 2020, which had a large impact on the business, Unique Flowers is looking to rebound in 2021. Sutea learnt during 2020 that a focus on her financial position was the best way to navigate the uncertainty.

Due to forced closures of her business in 2020 (March- June), Sutea went through a period of problems with her cash flow. She did not have enough money to meet her financial obligations, including paying the employees, the rent, and the other business outgoings. Going forward, she is looking to put those problems behind her but will be cautious in her financial planning.

Sutea is planning to change the way she operates her business with the addition of online ordering and no-contact deliveries.

Sutea 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:

image text in transcribedimage text in transcribedimage text in transcribed

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_2

Step: 3

blur-text-image_3

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

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

More Books

Students also viewed these Accounting questions

Question

Working with athletes who dope

Answered: 1 week ago