QUESTION TWO [20] You have been appointed to assist the financial manager for the City of Durban. Your task is to prepare the 2019 annual budget. Below you have been given the 2019 annual budget as well as additional information that could assist you in the process. Additional information: - Spending on corporate services should increase by 30% from 2018 ; - The budget for education should increase by R100 000; - As local municipalities have been given greater responsibility for traffic control, the budget for police can be increased by half of the 2018 amount; - Spending on Social Services must match the 2018 budgeted spending on Education; - Transport services will be more efficient and thus not require a change in budget; - The budget for taxation income must increase by 10%; - Grant income is expected to increase by R50 000; - The budgeted revenue from donations for 2019 is R70 000. Required: Prepare the 2019 City of Durban Annual Budget. (Show your workings)