Prepare the following:

a$)$ Income budget

b$)$ Cash budget

c$)$ Balance forecast

Beginning balance sheet information:

Assets $($euro$)-$ Liabilities $($euro$)$

Buildings $-36,000|$ Share Capital $-8,000$

Machinery and Equipment $-11,000|$ Profit Reserves $-12,000$

Storage $-6,000|$ Bank Loans $-32,500$

Short$-$term Receivables from Sales $-6,500|$ Short$-$term Purchase Liabilities $-2,000$

Cash and Bank Receivables $-1,200|$ Other Short$-$term Debts $-6,200$

Total $-60,700|$ Total $-60,700$

Budget Period Preliminary Information:

$-$Sales are $350,000$ euros.

$-$Cost of goods sold $($cost of sales$)$ is $25\%.$

$-$Personnel expenses and other operating expenses total $59,000$ euros, and these are paid during the budget period.

$-$Machinery and equipment will be purchased and paid for with $5,500$ euros.

$-$The tax$-$accepted depreciations are $4,800$ euros $($buildings $1,200$ euros and machinery and equipment $3,600$ euros$).$

$-$Interest is paid $2,000$ euros

$-$loans are reduced by $2,500$ euros.

$-$Taxes are paid at $20\%$ of profit before taxes.

$-$Dividends are paid at $1,200$ euros.

$-$Closing inventory is the same as opening inventory.

$-$Accounts receivable are $10\%$ of sales

$-$Accounts payable is $10\%$ of purchases

$-$By the end of the budget period, there must be at least $3,000$ euros in cash.

$-$Other short$-$term debts remain the same size.

$-$If cash receipts are not sufficient for cash disbursements, the difference is financed by bank loan financing.