On january 2017 TMK consulting company started its work. With the following data as on December 31,2017: Cash at bank 80,000 Loans 150,000 Receivables 150,000 Capital 100,000 Fixed assets 250,000 Accrued Expense 120,000 Rent 18,000 Consultants salaries 300,000 Advertising expense 33,000 Loans interest 15,000 Consulting revenue 500,000 Employees salarie 24,000

Based on the following information and using the financial statements data for 2017, prepare the sales budget as well as the cash budget for the year 2018. The company wants to increase its revenue at a rate of 20% annually Based on its plan to increase sales, the company expects that the cost of consultants will increase by 10% per year and will be paid in cash. The company policy will be to collect the total revenue for the quarter in the follwing quarter as a maximum. The remaining expenses of the company are expected to remain the same and to be paid in full in the same year in cash. The loan amount will repaid over three years at 50000 annualy, and the amount of 15000 is paid as interest for the loan per year. The company aims to hold 150000 cash in the bank at the end of 2018.

The company aims to hold 150000 cash in the bank at the end of 2018. Revenues budget for 2018 Quarter Description First quarter Second quarter Third quarter Total Total The cash budget for 2018 Description Partial Cash balance at the beginning of the Iperiod Fourth quarter Year XXX XX XX XXX Consalting revenues Total Revenues XXX (+) (cash inflows) Cash receipts Cash revenue receipts Receipts from receivable 20 XXX XXX Total cash receipts XXX Total cash available XXX XXX (-) (cash outflows) Cash payments Consaltants salaries Pay off loan installments and in XXX Administrative expenses XXX Total cash payments (***) XXX Accumulated cash balance Target cash balance (the ending period) Surplus / Deficit cash| (xxx) XX