Task 4: Estimate Wages and Disbursements Schedules Estimate the Wages and Disbursements Schedules for four years based on the following assumptions: Wages equals 10% of current year Sales. You pay wages monthly in arrears, meaning that you will only pay for eleven of the twelve months wages in the year in which they have been earned and will pay the remaining one month of wages earned in the last month of the current year in the following year.

Task 5: Estimate a Cash Budget Estimate a cash budget for four years, based on the above assumptions and the following additional assumptions: Selling and Administrative Expenses, including rent is estimated to be 10% of Sales and is paid in the year in which it occurs. The business requires capital expenditure of $500,000 a year in each of the first two years, which is also paid in the year it is incurred. Assume Cash at the beginning of the First Year is equal to a minimum amount you want to retain at the end of each year in cash to cover contingencies, being $50,000. Interest Expense on Debt is at a rate of 15% per annum and is estimated based on the Loan Balance estimated at the end of the prior year. Assume an external investor invests $2,000,000 in the First Year.