- Budgeting
Café by the Sea Ltd sells coffee and food and provides internet services. The owner Meg Holland has produced the Income Statement for the year ended 31 October 2006. She asks for your help in preparing a budget for the year ending 31 October 2007. The changes planned by Meg are:
i. Sales of coffee will increase by 5% ii. Sales of food will increase by 30% iii. Cost of goods sold for coffee are expected to be 40% of the value of coffee sales iv. Cost of goods sold for food are expected to be 70% of the value of food sales
v. Internet revenue is expected to increase by 50% vi. Advertising is budgeted at $125 per month