I can't understand how to perform this. Can you help me and explain please. Thanks

Manage Budgets and Forecast Part 2: Project For this part 2, you are required to prepare an annual budget for a business of your choice or using Patrick's Cod Fishing Ltd Task: Taking into account previous years' figures, available current year figures and any additional information, you are to create an annual budget for your chosen business. 1. Undertake discussions with stakeholders (Your instructor will role play these parts) to determine budget objectives and set milestones and / or performance indicators 2. Discuss and review assumptions and budget parameters - review these during the budget process as needed. (Some assumptions are included in Appendix 6 for Patrick's Cod Fishing Ltd). 3. Clearly details any Cash, expenditure and revenue items 4. Ensure your budget objectives are clear & conform with the business' expectations 5. Include milestones and performance indicators to monitor financial performance 6. Include a detailed break down of your annual budget into seasonal periods as required by the business 7. Identify any financial risks and incorporate protection strategies according to business Details: Students should keep the following points in mind when creating the budget . Set profit targets/goals to reflect the business' (or Patrick's) returns Identify the non-current asset requirements and consider alternative asset management strategies . Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements . Select budget targets to enable ongoing monitoring of financial performance . Relevant taxes such as GST and BAS should also be included. Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget. Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures. Any liaison with the proprietor of the business to determine milestones, policies, goals etc. should be carried out with your instructor, who will role play the relevant parts. Provided the balance sheet of Patrick's Cod Fishing Ltd, A small business, as at 30 June 20XX was follows: Balance Sheet as at 30/06/20Xx Current assets (includes $10,000 inventory & 40,000 $30,000 cash) 79,200 Non-Current assets 119,200 Total assets 18,560 Current liabilities (Loans)Asse Non-current liabilities FNSACC513 Manage Budgets and Forecasts Total liabilities Net Assets 11,840 30,400 Owner's Equity 88,800 88,800 Ignoring depreciation, prepare the following budgets and plans for 2015 on the assumptions given. Sales budgets Purchases budgets Inventory budgets . Cost of goods sold budget . Operating expenses budget Cash flow plan . Budgeted income statements for 20XX. Budgeted balance sheet as at 30/06/20XX Assumptions: All goods are marked up 50% on cost . Desired net profit is 10% sales and 20% on net assets. . Marketing expenses are 8% of sales . Administration expenses are 15% of Sales . Finance expenses are 5% of non-current liabilities. Desired ending inventory is 10% more than opening inventory. All expenses are paid as and when incurred Non-current liabilities will reduce by 3000. Current liabilities will reduce by 50% All revenue is received within the year. Submission You must submit: . A detailed report covering all the above points. of the ability to:513 - App. /6 + 66.7% - Appendix 1 - Patrick's Cod Fishing Ltd Patrick is the proprietor of a Murray Cod fishing business called "Patrick's Cod Fishing Ltd" which is located at Post Office Box 123, Newtown 2042 Patrick possesses the necessary licence from the State Fisheries Board at $20,000.00 per Cod Net. Patrick grows the Cod and sells them to export wholesalers. This means that for GST purposes, Patrick's Cod Fishing Ltd is EXP and NCF. (That is all of his sales are GST free and he does not have to pay any GST on expenditure items.) Patrick is still entitled to claim the GST that he has to pay on his payments. Therefore, you use the tax code NCG, NCF and FRE where appropriate. INFORMATION > Patrick has decided he wants you to prepare an annual budget for his operation. He states that business was very good last year, and enabled him to repay a number of outstanding personal debts. He provides you with the following figures: He caught 42,300kg of Murray Cod His yearly income totalled: $1,438,232 His yearly expenses totalled: $183,488 This gave him a yearly profit of: $ 1,254,744 He used the majority of this profit to repay large personal loans He has also given you figures from the current month's projected and actual figures. The balance sheet as at October 1, 20XX included: ASSETS EQUITIES Current assets Cash at Bank 1200 Current Liabilities God Nets 4200 Petty Cash 200 Non-current liabilities Cod License 1,200.000 Loan - Newtown Credit Non-current assets Union 200.000 2 Delivery Utes Owner's Equity Office Furniture & Equipment 14500 Cod Boat 2000 Cente - Patrick 2 Dinghies & Outboard Motors 250,090 1279600 TOTAL ASSETS 7500 1479600 1479600 earch AR p