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Task:
CASE STUDY INFORMATION
Helga Hemp owns Born Again Bags, a not for profit business that is registered for GST. Born Again Bags supports the diversion of post-consumer material (waste) into reusable bags to replace plastic bags. Fabric is gathered or donated and made into cloth bags which are sold to customers via an online shop.
Born Again Bags also receives income from donations and grants.
Receipts for the June quarter (inclusive of GST where appropriate):
Sales of bags $58,750
Donations $35,750
Grants $32,890
Trade-in of industrial sewing machine previously used in the business
$3,000
Bags donated to local growers’ co-op (market value $540)
$0
Expenses for the June quarter (inclusive of GST where appropriate):
Fabric and thread purchases $13,200
Fabric donated (market value $8000) $0
Subcontractors (not registered for GST) $4,400
Rent $7,200
Dinner at local restaurant* $330
Accommodation for staff at conferences (Hotel) $1,870
Airfares for staff to attend conferences**
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