Crown Cake is a business that has a passion for creating delicious and marvelous celebration cakes. Charles,
the owner of the Crown Cake, will start his business in July 2020. He plans to have over 80 cakes on display in
the Blacktown shop. These include birthday, wedding, anniversary and cupcakes. These cakes can be tailored
to suit customers’ budgets. All cakes are made fresh in the shop. Charles and his staff will take care of
everything from the initial consultation to the baking, decorating and delivery or collection of customers’ orders.
Charles plans to take customers’ orders on the phone when he starts the business. In the near future,
customers can order their cakes online. Charles has requested your team to set up the accounting information
systems for his new shop. In this project, your team is asked to do the following tasks for Crown Cake.
A. Write a proposal for Crown Cake’s Accounting Information Systems. In your proposal, you should
include the cost of the software systems, technical requirements, implementation and training strategy,
cost of annual maintenance and support. Discuss the impact of the Coronavirus for setting up the
systems and the risk of Crown Cake’s business when it opens in July 2020.
B. Briefly describe the accounting cycles, e.g. revenue cycle, expenditure cycle, production cycle in your
designed accounting system.
C. Provide samples of statements of financial position, financial performance and a cash flow statement
for which of these reports will be generated by your accounting systems in future. List all these sample
statements in the Appendix section of your proposal.
D. Provide a chart of accounts which supports above financial reporting in the Appendix section of your
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