Jack Barrow Landscape Gardening Business Financial Statement Accounting Assignment Help

Assignment Task

Task
The major assessment task for this subject is designed to be submitted in two parts, related to each other, to enable you to benefit from feedback provided on Part A
Cut Price Mowing is a landscape gardening business owned and operated by Jack Barrow.  The business provides clients with scheduled lawn mowing and general garden maintenance to creating outdoor areas. The business employee’s two full-time staff, Justin Timber-Rake and Doug Hole who help design and build the outdoor spaces with Jack.  The business has been operating for 5 years and in that time has experienced significant growth in creating outdoor spaces while the lawn mowing, and maintenance is declining.
Part A
Jack Barrow has been advised that he needs to review his business operations by the bank. Part of this requires a budget to be constructed for the upcoming year.  
Jack has provided you with information from the last few months.  
Budgeted total lawn mowing and maintenance sales $170,000
Budgeted sales per month: July to October 3%
November to February 15%
March to April 9%
May to June 5%
Percentage of lawn mowing and maintenance sales that are spent on materials inventory (COS) 12%
Closing inventory of lawn mowing and maintenance materials from June 2021 $1,350
Percentage of cost of goods sold for custom garden design (outdoor areas) 30%
Targeted inventory is held at 15% of next month’s sales (for lawn mowing materials and custom outdoor area supplies)
Budgeted total sales for custom outdoor areas (spread equally over 12 months) $360,000
Closing inventory of custom outdoor area supplies from June 2021 $2,000
Purchases are paid for in the month after being received. Opening balance for accounts payable is: $7,650
Expenses that are paid annually: Insurance expense paid on 25th of March (this is the same cost as last year) $12,500
Advertising expense paid on the 15th of September, allocated monthly based on lawn mowing and maintenance sales percentages $5,000
Other expenses paid monthly: Rent expense $1,250
Salaries and wages $7467
Additional casual labour expense is budgeted for, based on the monthly salary and the monthly sales percentage for mowing and maintenance (eg $7,467 x 0.03 for July) Office Shed expense $1,375
Office expenses (telephone and printing) $2,680
Depreciation on office shed $750
Depreciation on equipment $3,300
Monthly loan repayment (principal and interest). Loan interest is budgeted at $100 per month. $1,200
GST expense $360
Opening cash balance (first 5 numbers of student ID / 3) All lawnmowing sales are collected in the month 70% of custom sales are collected within the month, 30% in the month after Question 1
Incorporating data from 2021, prepare the following static monthly budgets from July to June 2022 for:
Sales
Purchases
Other expenses
Cash
Profit and loss (3 mark per budget)
Question 2
In a memorandum to Jack Barrow, advise him of any issues you have identified with the financial position of the business. (max 300 words) (5 marks)
Question 3
Jack Sparrow is investigating a new computer software program that will enable him to accurately design and cost the creation of new garden spaces.  To help recover the cost, Jack wants to add an additional 5% to landscape sales.  The new program costs $15,000.  In an email to Jack discuss:
The impact the purchase of the computer software will have on the budget (max 150 words) (5 marks)
Taking into consideration the financial and non-financial aspects of the organisation’s performance, should Jack Barrow purchase the new software? (max 200 words) (5 marks)
Would the budget benefit from being presented as a flexible budget? (5 mark)
Rationale
Subject learning outcomes
This assessment task will assess the following learning outcome/s:
be able to analyse and interpret a range of accounting and financial transactions and reports.
be able to implement various management accounting tools and techniques in making business decisions.
be able to use computer software to assist in the preparation of business information and be able to generate and analyse a range of business results and reports.
be able to employ research and report writing skills.
be able to contextualise and evaluate accounting information for ethical decision-making purposes

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