| 3.4 To assist in budgeting for the year ending 30 June 20XX, Central Bakery has provided the following information. Income Statement for the year ended 30 June 20XX | 20XX | 20XX (estimates) | | | $ | Details | | | Sales (80% credit) | 500,000 | 1100 units @ $500 inc GST | Increase price per unit by 5% and number of units by 15% | | Cost of sales | 200,000 | Cost $200 per unit inc GST | Suppliers price unchanged. All stock is purchased on credit | | Gross Profit | 300,000 | | | | Less other expenses | | | | | Bad debts | 4000 | | 20% of credit sales | | Depreciation of equipment | 18,000 | 15% per annum straight line | Same rate and method | | Wages | 95,000 | | 5% increase plus one new employee at $65,000 | | Office expenses | 25,000 | | Will pay $30,800 inc GST | | Total Expenses | 142,000 | | | | Net Profit | 158,000 | | | | 20XX | 20XX (estimates) | | | $ | Details | | | Assets | | | | | Bank | 28,000 | | No required | | Debtors control | 52,000 | | Collect $500,000 from debtors | | Stock control | 40,000 | 200 units | Number of units damaged | | Prepaid office expenses | 800 | | 30 June 20XX balance $2000 | | Equipment | 120,000 | | New equipment purchased for cash $20,000 + GST | | Accum Depn | (44,000) | | | | Total Assets | 196,800 | | | | 20XX | 20XX (estimates) | | | $ | Details | | | Liabilities | | | | | Creditors control | 27,000 | | Pay $245,000 to creditors 30 June balance $35,000 | | Accrued wages | 2000 | | 30 June balance $3,500 | | GST Clearing | 3000 | | Not required | | Loan | 36,000 | Taken 30 June 20XX | Settle in February paying $4,200 in total | | Total Liabilities | 36,000 | | | | Owners equity | | | | | Capital | 168,800 | | Drawings $60,000 cash, no additional capital | | Total Equities | 196,800 | | | |
