QUESTION ONE [25] You are provided with the following budget versus actual report of the state entity for the 2022 financial year. Prepare the budget for the 2023 financial year, incorporating the additional information provided below. 2022 2022 Budgeted Actual Sales 2 500 000 2 654 000 Cost of Sales 1 750 000 1 785 000 Gross Profit 750 000 869 000 Other income Interest received 65 000 58 500 Donations 150 000 120 500 Total income 965 000 1 048 000 Expenditure Municipal charges 156 000 165 000 Printing and Stationery 34 000 32 000 Cleaning materials and consumables 17 500 15 500 Computer maintenance 47 000 52 000 Office rental 120 000 135 000 Communication cost

Communication cost 65 500 7 200 Salaries and wages 500 000 530 000 Fuel, Oil and maintenance 25 000 37 500 Total expenditure 965 000 974 200 Surplus/Deficit - 73 800 Additional information: o Sales and cost of sales expected for the 2023 is based on a 12% increase on actual results. o The budget for other income is expected to increase with 5%. o The actual municipal charges will be inflated with 18,5%. o Printing and stationery budget will increase with R6 500. o Cleaning materials and consumables is expected to be R21 000. o Computer maintenance, office rental, salaries and wages and the fuel expenses will increase with 15,5% on actual results. o The communication cost budget will increase with R6 875.