ft a budget proposal in order for them to go and seek funding. The management team supplies you with the following information.
The company will not generate any income for the first 3 months of the year (jan - march) on the 4th month the company will generate sales of R500 000.00 thereafter the company sales will increase by 10% until December.
Salaries will be R85 000.00 a month from the beginning of the year. There will be increase of 7% which will only be applicable as if the sixth month. Staff bonus will be payable in December and will amount R28 000
Stationary printing expenses are estimated to be R10 000. 00( vat excluded) every month.
Telephone expenses in January are expected to be R5 500.00(vat excluded) and will increase by 5% every month.
Rent will be payable from the 3rd month at a cost of R 20 000.00. There will be decrease of 5% from August to the end if the year and the company will be given a rental discount of 10% in December.
Return on the investment will be as follows: april R90 000.00 August and September will be R80 000.00 december R150 000.00 all returns will be taxable according appropriate tax standards.
Draw a cash budget for XYP (pty) Ltd for the year ending 31 December 2018 (30)