Revenue and General Expenses Essay

Submitted By tinaluo920
Words: 303
Pages: 2

Required: Using the template on the next page, prepare the budget for Café by the Sea Ltd and write your answer in the column labelled budget y.e 31 Oct 2007. | Actual y.e 31 Oct 2006 | | | | Sales of Coffee | 89,000 | | 93450 | | Sales of Food | 30,000 | | 39000 | | Cost of Goods Sold - Coffee | 119,000 37,380 | | 132450 37380 | | Cost of Goods Sold - Food | 22,500 | | 27300 | | Gross Profit Add Internet service revenue | 59,880 59,120 4,200 | | 64680 67770 6300 | | Less Expenses Advertising Computing General Expenses Interest Bank Fees Wages Other Expenses | 63,320 1,900 860 1,060 605 240 32,920 12,830 | | 74070 1500 1160 1113 300 240 36420 12830 | | | 50,415 | | 53563 | | | | | | | Net Profit | $12,905 | | 20507 | |

- 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