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Financial management

On 1 / 21-2021, John Stark started a consulting company called JoSta AB. He asks you for help in preparing a profit budget, a liquidity budget and a budgeted balance sheet for the first financial year, ie 2021. John himself invests SEK 100,000 in share capital. Furthermore, a loan is taken out to deposit an additional SEK 600,000 in the company. The loan must be repaid in 10 years. As he has succeeded in convincing several company human resources managers, he believes he can secure many consulting assignments in advanced HR management. Therefore, he expects to invoice SEK 420,000 per month, evenly distributed over the year. He has three types of customers where 50% of customers get 40 days and 20% of customers get 20 days and the rest get zero days in average credit time. The salaries that are charged to the company amount to SEK 250,000 per month and for the sake of simplicity, as it is a budget, he expects that the entire cost will be paid out the month after they have been earned. An initial repayment on the loan will be made on 31/12/2021. Interest expenses are assumed to be 5% of the entire loan amount and are paid on 31/12/2021. In connection with the start of the business, computer equipment and equipment are also purchased for SEK 600,000, which is paid directly. They are depreciated over three years. Other costs are estimated at SEK 1,000,000 in the first year. They are paid during the budgeted financial year and are consumed in full. Below are five sub-questions, a-e.

a) The total budgeted payments for 2021 =

b) The total budgeted operating expenses for 2021 =

c) The total assets as of 2021-12-31 =

d) The total budgeted payments for 2021 =

e) The total equity as of 2021-12-31 =

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