Using the FNSACC523_AE_Sk2of3_Appx1_Coffee Ramp_Budget and Performance Report_template found inFNSACC523_AE_Sk2of3_Appx_1_Templates.zip, prepare an annual budget for 2023/24.

• This Excel Spreadsheet should include all appropriate formulas and calculations including links across worksheets to provide clear evidence of all assumptions and calculations made.
• You are required to break down the annual budget into quarters according to the seasonal data provided. You may also refer to information regarding operating trends in section 2.3 ofAzure Beach Accountants and Financial Services Budget Policy. If no other information is provided, then allocate the budget evenly across quarters.

You have received a new client who has started up a local caf business - Coffee Ramp. The caf owner's name is Charlie Moore. The client wants you to prepare an annual budget for the caf for 2023/2024 but has no experience in budgeting.

You have had a brief conversation on the phone with Charlie. In this conversation, you discuss with Charlie how he is planning on growing his business in the coming year. He has identified a goal of a 10% increase in sales by developing a more targeted advertising campaign within the local area.

1. Charlie also advises you that he will not be renewing the lease of the coffee machine for 2023/24 as he has purchased a new machine which will be operational by 1 December 2023. The cost of the new machine will be $55,000 and is expected to have a useful life of 10 years.

Based on this information, the following is relevant to your client:

• Seasonal breakdown of sales is generally:
  • January - March: 35%
  • April - June: 20%
  • July - September: 15%
  • October - December: 30%
• Cost of sales (variable costs) will move in line with sales
• Casual staff are employed according to seasonal fluctuations
• Award wage increase for permanent staff of 2% in 2023/24
• Increase in expenses due to inflation and other factors as follows:
  • Utilities: 3% (paid quarterly)
  • Insurance: 2.5% (paid annually in December)
  • Cost of Azure Beach Accountants and Financial Services budgeting services $2000, due quarterly
  • rental increase of 3% paid monthly.

1. You have requested that Charlie send an income statement for 2022/2023 via email and have agreed with him that the final budget will be presented as a quarterly breakdown of the total Annual Budget.

Income statement 2022/2023 - Coffee ramp

Table2 - Income statement

Coffee Ramp Income Statement	For the year ended 30 June 2023
Sales First Quarter Second Quarter Third Quarter Fourth Quarter	58,700 84,600 85,900 56,800	286,000
Caf supplies Coffee ingredients outsourced sandwiches Outsourced cakes	60,500 25,900 28,700	115,100
Gross profit		170,900
Wages permanent staff casual staff (seasonal)	35,500 47,550	83,050
Advertising social media 1,250 sandwich board 250	1,250 250	1,500
Rent of Premises Drummoyne, Sydney	20,000	20,000
Lease of Coffee Machine	15,000	15,000
Admin Wages 0.2 FTE Bookkeeper Staff amenities stationery	12,400 1,000 1,100	14,500
Utilities electricity water internet/phone/database costs waste removal	2,700 750 1100 1100	5,650
Insurance public liability contents	1,000 2,700	3,700
Total Expenses		143,400
Net profit		27,500

2022/23 Full Year Actual 286,000 115,100 170,900 60% 35,500 47,550 1,500 20,000 14,500 5,650 3,700 15,000 143,400 27,500 10% Ist Quarter Coffee Ramp Budget Budgeted Income Statement Year 2nd Quarter 3rd Quarter 4th Quarter 2023/24 Full Year Rudnat Comment/Assumption