Kidlington Electronics is a new small business being set up by a friend of yours. The business will be to assemble bespoke electronic circuits to customer designs. The company owner is technically able but not that proficient at financial planning and modelling. You have been asked to produce a financial model based on available information and answer a few questions using the model. The plan is that the business will start trading in January next year when suitable, fully equipped premises become available on very preferential terms for 6 months. The rent for the premises will be 30,000 per annum payable monthly at the end of the month. The business will need three electronic engineers to do the design, assembly and test work. They will be paid monthly, at the end of each month they work, at a rate of 21,000 per annum. The manager will also be paid monthly at the end of each month at a rate of 24,000 per annum. Sales Volume are planned to be 3 designs in January at an average selling price of 2,500 each, 5 in February at 3,000 each, 7 in March at 4,500 each, 9 in April at 5,000 each, 10 in May at 5,000 each and 11 in June at 5,000 each. Customers will be given two months credit The business will require materials directly attributable to sales of on average 15% of product selling price. Their supplier has agreed to give them one month credit. Finally they have agreed a contract with a bookkeeper at the annual rate of 15,000 payable monthly one month in arrears. Your friend has negotiated a 25,000 loan from the bank with no interest payment required in the first year of trading. Your friend has asked you to produce the following documents: (a) [6 Marks] Cash flow model for the months January to June (b) [6 Marks] Profit and Loss Account for this first 6 months trading (c) [8 Marks] A Balance Sheet as at the end of June (d) [5 Marks] Your friend has asked you to advise whether the business plan has any problems and if so what options they have as solutions