What are the record keeping requirements for a business in Australia

Part AVisit the Australian Tax Office Website on www.ato.gov.au and research the followinginformation:( 20marks-5 per questions)1.2.3.4. What are the record keeping requirements for a business in Australia?What is an audit and how often can a business be audited by the tax office?What records must a business keep for auditing purposes?What are the penalties for a business not keeping the required records? Part BThe section has 2 Tasks. You are required to complete both tasks.Important note: Spreadsheets must be prepared using Microsoft excel.ScenarioSimpsons Pty Ltd is a small take away restaurant located In Sydney CBD. The restaurant isowned by Mr&Mrs John Spice. The restaurant started its activities in January current year.In December current year the following information was collected:Sales and Cogs activities for current yearThe restaurant sod 54,600 take away meals, and the price per meal was $10.5. The food costper meal sold was $4.60. Also 20,000 units of soft drinks were sold during the year. Softdrinks are sold for $2.5 and the cost price was $0.80.Budget forecasting for next yearThe owners estimated that for the next year the price per take away meal could be increasedto $13.00. Then have also predicted that sales (in units) would be increased by 10% in thenext year. The owners have entered into a monthly Contract with the soft drinks supplier.According to the Contract the restaurant must purchase a minimum of 2,000 units of softdrinks per month and the cost price will be reduced to $0.50 per unit. The restaurant ownersdecided to reduce the selling price of soft drinks to $1.50 in order to increase sales (in units)by 50% and are expecting to meet the required selling demand.The owners have anticipated the following expenses for next year:Anticipated yearly expenses for next yearCost of Goods Sold (food+beverage) $291,276 Rent $24,000 Utilities $10,000 Wages $60,000 Miscellaneous $6,000 Task 1Task 1 has 4 activities which require you to prepare Microsoft Excel spreadsheets based ongiven scenarios to monitor and review the budgets. When completed, email your spreadsheets to your trainer before the start of the lesson inSession 5. Your trainer will give you their @apc.edu.au email address. Print a hard copy ofthe spreadsheets to attach to the rest of Assessment 1 also to be handed to the trainer inSession 5. Question 1:Important note: spreadsheets must be prepared using Microsoft excelBased on the above Sales and Cogs activities for current year;Prepare a spreadsheet with annual Sales for food and drinks and Cogs for meals and drinks;in addition include columns for the monthly average and quarterly average….ing the prepared template form Question 1; continue with the following:(10 marks)Question 2:Based on the Budget forecasting for next year, as mentioned in the scenario:Prepare a 2nd spreadsheet similar to Question 1 for the annual Profit and Loss Budget; alsoinclude end columns for average monthly and average quarterly totals.(10 marks)Question 3:Based on the following assumptions prepare a 3 rd spreadsheet with the actual tradingactivities for the 1st quarter next year.Assume that during the 1st quarter of next yearFood revenue was 20% higher than the budget forecastedFood Cost was 30% higher than the budget forecastedBeverage sales was 15,000 unitsUtilities Expense was $3,000Wages expense $20,000Rent expense was $6,500You are required to monitor the trading activities for Simpsons Pty Ltd for the first quarter ofnext year and identify and record in an additional column all dollar $ variances form theforecasted budget.(15 marks)Question 4In order to control costs prepare a 4 th spreadsheet; identifying and recording the necessaryadjustments to be made to the budget for the 2 nd, 3rd, 4th quarters of next year. (15 marks)Task 2Task 2 requires you to identify options for improved budget performance. Write a one pagefinancial report to the restaurant owners; include the following:a. Based on the variances found, identify the possible causes for such deviations andincorporate your recommendations for improving the business performance.(10 marks)b. Include your suggestions regarding the Contract for purchasing soft drinks(10 marks)c. Explain your reasons for the necessary adjustments made to the budget for the 2 nd,3rd, and 4th quarters of next year.(10 marks)