Budgetary Notes

National Insurance is 5.9% of Salary

Bad Debt is 10% of Sales

Salaries is 20% of total income

Travel is 50% of Miscellaneous Sales

Bank Charges is 10% of Miscellaneous Income

Cost of sales is 30% of total income

2014 2015 Budget 2016 Budget 2017 Budget 2018 Budget INCOME Furniture Sales Book Sales Miscellaneous Sales Other Income Total Income 72,000 57,000 6,000 11,000 146,000 2015 2016 2017 Changes Changes Changes (Inc/Dee%) (Inc/Dec%) (Inc/Dec%) 7% 8% 10% 3% -3% 3% -4% -2% 5% 5% 10% -5% 77,040 58,7101 5,760 11,550 153,060 83,203.2 56,948.7 5,644.8 12,705 158,501.7 91,523.52 58,657.161 5,927.04 12,069.75 168,177.471 See Notes See Notes See Notes COST OF SALES Gross Profit 45,000 101,000 45,918 107,142 47,550.51 110,951.19 50,453.241 117,724.23 EXPENSES See Notes See Notes See Notes 1% 2% See Notes See Notes 0% -4% 3% See Notes See Notes 2% -2% Salaries Rent Bad Debt Expenses Travel Accounting services Printing Utilities Public Relations National insurance Bank charges Depreciation Miscellaneous Total Expenses 25,000 12,000 6,000 3,000 6,000 3,500 6,500 7,000 1.350 600 1,500 5,000 77,450 -5% 0% See Notes See Notes 5% 3% 1% -3% See Notes See Notes 3% 8% 30,612 12,240 15,306 2,880 6,000 3,360 6,175 7,420 1,806. 108 576 1,650 6,050 94,075 31,700.34 12,6072 15,850.17 2,822.4 6,120 3,292.8 6,175 7,791 1,870.32 564.48 1,732.5 6,957.5 97,484 33,635.494 12,733.272 16,817.747 2.963.52 6,426 3,391,584 6,236.75 7,557.27 1,984.494 592.704 1,784.475 7,514.1 101,637 5% See Notes 6% See Notes See Notes 10% 21% See Notes 5% 15% NET (LOSS)/PROFIT 23,550 13,066.892 13.467.48 16,086.819 Using the information included herein, prepare a budget for 2018. Use 2017 budget as your beginning base