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Prepare the following: a ) Income budget b ) Cash budget c ) Balance forecast Beginning balance sheet information: Assets ( euro ) - Liabilities
Prepare the following:
a Income budget
b Cash budget
c Balance forecast
Beginning balance sheet information:
Assets euro Liabilities euro
Buildings Share Capital
Machinery and Equipment Profit Reserves
Storage Bank Loans
Shortterm Receivables from Sales Shortterm Purchase Liabilities
Cash and Bank Receivables Other Shortterm Debts
Total Total
Budget Period Preliminary Information:
Sales are euros.
Cost of goods sold cost of sales is
Personnel expenses and other operating expenses total euros, and these are paid during the budget period.
Machinery and equipment will be purchased and paid for with euros.
The taxaccepted depreciations are euros buildings euros and machinery and equipment euros
Interest is paid euros
loans are reduced by euros.
Taxes are paid at of profit before taxes.
Dividends are paid at euros.
Closing inventory is the same as opening inventory.
Accounts receivable are of sales
Accounts payable is of purchases
By the end of the budget period, there must be at least euros in cash.
Other shortterm debts remain the same size.
If cash receipts are not sufficient for cash disbursements, the difference is financed by bank loan financing.
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