Prepare the budgeted profit and loss account for the year

Wallace Waters Limited is a company based in Nairobi, Kenya. It is a family-owned business formed by Kamau Wallace and then handed down to her sons and daughters. It manufacturers a single product - a unique brand of vanilla flavoured spring water, produced to a special recipe known only to the family itself. The company is now run by the grandchildren of the founder, and they are having some problems in dealing with the competitive and crowded market for bottled spring waters. The management, led by Wairimu Wallace as CEO, are starting to prepare next year's budget and have assembled the following data. Their initial impression is that this set of forecast data will not produce an outcome satisfactory to them or the family shareholders. Thus, the management team has convened to consider some alternative approaches that might improve the outcome next year. The following approaches were discussed at a management meeting