Financial Modelling (20 marks) 1. The budget officer of Sux Company Limited is preparing the budget for the fiscal year of 2023. The cost of goods sold for December 2022 was $1,500,000 while the gross profit was $500,000. The company anticipates that the sales of the company would grow at 2 percent for the first quarter of 2023, 3% for the second quarter of 2023, 4 % for the third quarter, and 5 % for the last quarter of 2023. The units of production for December 2022 was 1,000,000 units. For each product sold, the company uses 2 units of raw materials, 1.5 hours of direct labour. Overheads are 80 percent of direct labour costs. The company receives 20 percent of its sales in the month of sales, 40 percent in a months time, and the remaining balance two months after sales. The company pays workers their wages in the month they provide their service. The companys suppliers offer it one month of credit to pay for raw materials purchased. The average unit price of the raw materials supplied is $0.20. The companys cash balance at the end of December 2022 was $100,000.

Required: a. Prepare the sales budget for 2023. (5 marks) b. Prepare the production budget for 2023. (5 marks) c. Prepare the manufacturing budget for 2023. (5 marks) d. Prepare the cash budget and determine whether the company needs additional finance or not (5 marks)