Johanna and her sister are developing a business to make branded reusable stainless steel coffee mugs aimed at the Tourist Market, with logos such as "Love Queenstown" and "Love Taupo". They have developed a web page and are successfully attracting customers from the tourist- located cafes and restaurants. Sales for each quarter of 2019 were as follows. Quarter ending Mar-2019 Jun-2019 Sep-2019 Dec-2019 Number of Mugs 3,600 3,800 4,200 4,800 The sisters have changed their sale strategy for 2020 to a person to person approach and believe this new approach will lead to a 10% sales increase in each quarter in 2020 from the December 2019 base of sales of 4,800 mugs - that is they predict that each quarter in 2020 will have 10% more sales than the previous quarter. The unit sales price will be unchanged from the 2019 price of $8 per mug. They have applied for a bank loan to help finance the expansion of their business. The bank has requested detailed financial data to support their loan application. Required: Prepare a sales budget for 2020. (Ignore GST in your budget.)

Johanna and her sister are developing a business to make branded reusable stainless steel coffee mugs aimed at the Tourist Market, with logos such as "Love Queenstown" and "Love Taupo". They have developed a web page and are successfully attracting customers from the tourist- located cafes and restaurants. Sales for each quarter of 2019 were as follows. Quarter ending Mar-2019 Jun-2019 Sep-2019 Dec-2019 Number of Mugs 3,600 3,800 4,200 4,800 The sisters have changed their sale strategy for 2020 to a person to person approach and believe this new approach will lead to a 10% sales increase in each quarter in 2020 from the December 2019 base of sales of 4,800 mugs - that is they predict that each quarter in 2020 will have 10% more sales than the previous quarter. The unit sales price will be unchanged from the 2019 price of $8 per mug. They have applied for a bank loan to help finance the expansion of their business. The bank has requested detailed financial data to support their loan application. Required: Prepare a sales budget for 2020. (Ignore GST in your budget.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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