Requirements

Prepare a master budget for PLOS Limited for the period from Q2 2023 to Q1 2024 covered by the annual contract. The following components must be included:

1. Beginning balance sheet (disaggregate asset accounts if possible)
2. Sales budget
3. Schedule of expected cash collection
4. Production budget
5. Direct materials purchases budget
6. Schedule of disbursements for materials
7. Direct labour budget
8. Overhead budget (be sure to show cash disbursements for variable and fixed overheads,

in addition to applied variable and fixed overhead expenses).

1. Selling and administrative budget (be sure to show cash disbursements for selling and

administrative expenses).

1. Cash budget

Prepare the following for the year.

1. Cost of goods manufactured budget
2. Cost of goods sold budget

m. Pro forma income statement

n. Pro forma classified balance sheet

You should complete the cash budget, the pro forma income statement, and the pro forma balance sheet by building Excel formulas to account for information flow between three statements. For example, provisions for income tax or tax expenses in the income statement depend on the taxable income, which depends on interest expenses determined in the cash budget. Completing cash budget and pro forma income statement first allows you to complete the pro forma balance sheet.

Please use the following structure for the income statement:

Sales Less: COGS (Cost of Goods Sold) Gross Profit Less: Selling, General, and Administrative Expenses Operating Income Less: Interest Expenses Income before Taxes Less: Tax Expenses (Provision for income taxes) Net Income

Help make an alternative budget on another excel sheet when the company does not layoff employees, then another alternative budget on another excel sheet when the company does layoff employees

1. Master Budget for an alternative scenario for Q2-2023 - Q1-2025 with the layoff
2. Master Budget for an alternative scenario for Q2-2023 - Q1-2025 without the layoff

Here is the additional info that is needed:

PLOS Limited foresees a shortage of material supply. As a result, the company will deliver only 20,000 units in the second and third quarters of 2023. The company will be able to meet the scheduled delivery for the rest of the contract year. The downturn in production will significantly deteriorate the company's profitability, so the management is considering a permanent downsizing of its labor force. A layoff will save $200,000 in salary expenses annually but will reduce the firm's production capacity to 70% in the following year (from Q2-2024 to Q1-2025). The annual contract size will also be reduced to 70% of the current amount. Should the company downsize its labor force or not?

As of the first quarter of 2023, the annual contract specifies the volume, selling price, and the timing of the delivery from April 2023 to March 2024. The scheduled delivery in units for each quarter is the following:

\fCash $50,000 Accounts Payable $74,300 Accounts Receivable 0 Raw Material Inventory 22,800 Finished Goods Inventory 0 Capital Stock 600,000 Buildings and Equipment 1,000,00 0 Retained Earnings 198,500 Accumulated Depreciation (200,000) Total Assets $872,800 Total Liabilities and Shareholder's $872,80 Equity 0