Role Play: You are the VP of Planning at Awesome, LLC. Uou are required to prepare a 2022 budget for the company president. Be sure to include all relevant budget schedules, including pro forma income statements and a cash budget. Clearly identify if any loans are required, and why.

Awesome, LLC is a whilesale electrical distributor. The following projections have been made for 2021 budget:

Information: Awesome, LLC. is a wholesale electrical distributor. The following projections have been made for the 2021 budget: Sales Forecast January, 2021 February March April May June July August September October November December $200,000 $220,000 S180,000 $210,000 $200,000 $180,000 $175,000 $170,000 $185,000 $200,000 $210,000 $220,000 Cost Data: Average Purchase Price of Product: 60% of selling price Commission to Sales People: 10% of sales Other Operating Expenses: $42,000 per month, including $2,000 depreciation not including interest expense (if any.) January, 2022 $230,000 Awesome, LLC Projected Balance Sheer at December 31, 2020 Assets Equities Cash $ 20,000 Accounts Payable Accounts Receivable 110,000 (for merchandise) $ 80,000 Inventory 150,000 Common Stock 300,000 Building & Equipment, net 200,000 Retained Earnings 100,000 Total $480.000 Total $480.000 Other Information: a. Awesome maintains inventory at 90% of the coming month's sales requirements. b. Sales are collected 40% in the month of sale, 58% in the following month. c. Bad debts are written off immediately, if not collected in the month following the sale. d. Purchases are paid 30% in the month of purchase, 70% in the following month. e. All other expenses requiring cash are paid in the month incurred. f. The board of directors plans to declare a $4,000 dividend on May 10, 2021, payable June 2, 2021. g. The company wishes to maintain a minimum cash balance of $15,000. A line of credit has been negotiated, to be used only when necessary, at an interest rate of 12%. h. No capital purchases are planned. 2 Required: In Excel, prepare a monthly budget for January to December, 2021, with totals for the year, to include: 1. A budgeted income statement 2. A purchase budget 3. A cash receipts budget 4. A cash disbursements budget 5. A cash budget and 6. A pro forma balance sheet as of December 31, 2021. Notes & Hints... 1. If you feel that some critical piece of information is missing, make and highlight an appropriate assumption. If you wish, you can check with me about the need for and validity of a particular assumption. 2. I recommend constructing the statements for one month and then copying the formulas over to the remaining months. I will look at the copy of your spreadsheet on the disk to see what formulas you have used to develop your model. 3. Make sure you provide instructions for other users, if the loan calculation isn't automatic. 4. Ignore taxes