Please complete the income statement budget and cash budget for 2023 each by quarter and in total Lotus Coffee imports raw specialty coffee beans from growers in Dak Lak, a province of Vietnam Specialty coffee is considered to be Arabica coffees highest standard To be recognized as specialty coffee, the beans must undergo strict evaluation the growers must fully comply with the prescribed production process, from the stage of cultivation, to harvesting, preliminary treatment, preservation, etc Once receiving the coffee beans shipment, Lotus Coffee implements strict standards in the roasting process It then packages these fabulous beans for sale to consumers across Canada Lotus Coffee packages all its beans into 454 gram packages Most of Lotus Coffee's customers are specialty coffee shops However, it does have a small retail space where customers may come to purchase roasted coffee beans for home use About 20 of its total sales are paid in cash, and the remaining 80 is billed to coffee shops Of the sales billed to coffee shops, 60 are collected within the same quarter and the remaining is collected in the following quarter All expenses are paid the month they are incurred The company's year end is September 30 th Larry provided the following information (EXCEL APPENDIX A) 2023 Operating Projections Q1 Q2 Q3 Q4 Oct Dec Jan Mar Apr Jun Jul Sep Expected package sales 60,000 50,000 40,000 40,000 Unit selling price $10 $10 $10 $10 Staff costs Estimated to be 20 of sales Operating Expenses Estimated to be 30 of sales Depreciation expense $11,000 $11,000 $11,000 $11,000 Raw material cost per kilogram $6 60 $6 60 $7 70 $7 70 Lotus purchases itscoffee beans in kilogram quantities (1000 grams 1 kilogram) Shipments from Vietnam can be unreliable, so Larry prefers to have as much raw material (unroasted beans) on hand as possible He likes to maintain a balance of raw materials equal to approximately 60 of next quarter sales All the roasted beans are sold in the same quarter they are made to maintain freshness He expects sales for the first quarter in 2024 to be 65,000 packages Larry plans to replace the roasting equipment in May 2023 with a brand new machinethat will produce even more aromatic coffee beans starting in the next fiscal year The expected cost is approximately $100,000 and will be paid for in cash The company needs to repay $12,000 per month on the long term non interest bearing loanfrom Larry's father In addition, he pays himself dividends of $15,000 per month in lieu of salary Lotus Coffee has a $250,000 line of credit that can be drawn from for short term financing Interest is paid quarterly, and it is calculated as 4 5 per year on the outstanding balance at the end of the previous quarter The line of credit balance is zero at the beginning of fiscal 2023 Any excess cash is immediately used to pay down the line of credit

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Please complete the income statement budget and cash budget for 2023 each by quarter and in total. Lotus Coffee imports raw specialty coffee beans from

Please complete the income statement budget and cash budget for 2023 each by quarter and in total.

Lotus Coffee imports raw specialty coffee beans from growers in Dak Lak, a province of Vietnam. Specialty coffee is considered to be Arabica coffees highest standard. To be recognized as specialty coffee, the beans must undergo strict evaluation; the growers must fully comply with the prescribed production process, from the stage of cultivation, to harvesting, preliminary treatment, preservation, etc.

Once receiving the coffee beans shipment, Lotus Coffee implements strict standards in the roasting process. It then packages these fabulous beans for sale to consumers across Canada. Lotus Coffee packages all its beans into 454-gram packages.

Most of Lotus Coffee's customers are specialty coffee shops. However, it does have a small retail space where customers may come to purchase roasted coffee beans for home use. About 20% of its total sales are paid in cash, and the remaining 80% is billed to coffee shops. Of the sales billed to coffee shops, 60% are collected within the same quarter and the remaining is collected in the following quarter. All expenses are paid the month they are incurred. The company's year-end is September 30^th.

Larry provided the following information (EXCEL APPENDIX A).

	2023 Operating Projections
	Q1	Q2	Q3	Q4
	Oct-Dec	Jan-Mar	Apr-Jun	Jul-Sep
Expected package sales	60,000	50,000	40,000	40,000
Unit selling price	$10	$10	$10	$10
Staff costs	Estimated to be 20% of sales
Operating Expenses	Estimated to be 30% of sales
Depreciation expense	$11,000	$11,000	$11,000	$11,000
Raw material cost per kilogram	$6.60	$6.60	$7.70	$7.70

Lotus purchases itscoffee beans in kilogram quantities (1000 grams = 1 kilogram). Shipments from Vietnam can be unreliable, so Larry prefers to have as much raw material (unroasted beans) on hand as possible. He likes to maintain a balance of raw materials equal to approximately 60% of next quarter sales. All the roasted beans are sold in the same quarter they are made to maintain freshness. He expects sales for the first quarter in 2024 to be 65,000 packages.

Larry plans to replace the roasting equipment in May 2023 with a brand-new machinethat will produce even more aromatic coffee beans starting in the next fiscal year. The expected cost is approximately $100,000 and will be paid for in cash.

The company needs to repay $12,000 per month on the long-term non-interest-bearing loanfrom Larry's father. In addition, he pays himself dividends of $15,000 per month in lieu of salary.

Lotus Coffee has a $250,000 line of credit that can be drawn from for short-term financing. Interest is paid quarterly, and it is calculated as 4.5% per year on the outstanding balance at the end of the previous quarter. The line of credit balance is zero at the beginning of fiscal 2023. Any excess cash is immediately used to pay down the line of credit.