A B C RPN Co., Ltd. Cost of Goods Sold Budget For the Year Ended December 2022 Beginning finished goods inventory S 58,320 Add: Direct materials Beginning raw materials inventory S 40,000 Add: Raw materials purchased S 404,200 Less: Ending raw materials inventory S 44,800 Raw materials used in production 399,400 Add: Direct labor 798,800 Add: Mfg. overhead ($3 / DLH) 239,640 Cost of goods manufactured S 1,437,840 Ending finished goods inventory S 84,240 Cost of goods sold 1,411,920RPN Co., Ltd Budgeted Income Statement For the Year Ended December 31, 2021 Budgeted sales in units 38,500.00 Total budgeted sales $ 3,080,000.00 Cost of goods sold $ 1,411,920.00 Gross margin $ 1,668,080.00 Selling expenses 530,440.00 Excess profit $ 1,137,640.00 Less: Fixed expenses Manufacturing overhead 444,600.00 Selling expenses 530,400.00 Admin. Expenses $ 295,992.00 Total fixed expenses $ 1,270,992.00 Operating profit (133,352.00) Less: Interest expense 2,227.00 Pretax profit $ (135,579.00) Less: Taxes (assumed) (47,452.65) Net profit (88,126.35)RPN Co., Ltd. Budgeted Balance Sheet For the Year Ended December 2022 Assets: Cash (36,592.00) Accounts receivable S 384,000.00 Inventory 84,240.00 Total current assets 431,648.00 Other assets 558,585.65 Total assets S 990,233.65 Liabilities and Stockholders' Equity Accounts payable 39,180.00 Total liabilities 39,180.00 Common stock $ 1,000,000.00 Retained earnings S (88,126.35) Total liabilities and stockholders' equity S 990,233.654. You are the CEO of RPN Co., Ltd. and your team has prepared a budget for 2022 by quarter as shown in the following sheets. 4.1 . Discuss how you think about the proposed budget and the performance of the company. What can you suggest to improve both the business operations and the budgeting? (10 points) 4.2. Suppose budgeted sales for quarter 1 and quarter 2 are to be revised down from 8,000 and 8,500 units respectively. Explain how these changes will affect the budgets. Also, recommend some strategies to tackle the drop in sales and improve the performance in 2022. You may present a revised master budget to support your argument. (15 points)