Each year's budget is based on the preceeding year's amount. (e.g. 2017 accounts is based on 2016 accounts) Complete the Three Year Budget for Blot Blotty Corporation Budgetary Notes

1. National Insurance is 5.9% of Salary

a. Bad Debt is 10% of Sales

b. Salaries is 20% of total income

2. Travel is 50% of Miscellaneous Sales

a. Bank Charges is 10% of Miscellaneous Income

b. Cost of sales is 30% of total income

Please explain each step.

2015 Budget 2016 Budget 2017 Budget 2018 Budget INCOME Furniture Sales Book Sales Miscellaneous Sales Other Income Total Income 2014 2015 2016 2017 Changes Changes Changes (Inc/Dec%) (Inc/Dec%) (Inc/Dec%) 72,000 7% 8% 10% 57,000 3% -3% 3% 6,000 -4% -2% 5% 11,000 10% -5% 146,000 77,040 58,710 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 5% 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 3% 1% See Notes See Notes See Notes See Notes 200 5% 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 See Notes 2% See Notes See Notes 0% -4% -5% 6% See Notes See Notes 10% 21% -2% 0% 5% 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 3% 1% -3% See Notes See Notes 3% 8% 31.700.34 12,607.2 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 See Notes 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