We have had a pandemic for more than 18 months. Moreover, now it is September; it is time for us to make a budget for 2022 to 2027.
In 2022, we see an opportunity for Indonesia's economic growth to increase in line with the decline in the Covid-19 pandemic. Indonesia's economic growth is estimated to reach 5.5%, and inflation is expected to reach 3%.
The consumer sector is one of the most attractive industries for the coming years, with a growing middle class and a growing population. So, we as a consumer goods manufacturing (biscuit producer) company. We target sales growth from the number of 35% units throughout 2022 and a further 20% for 2023; 15% for 2024; 10% from 2025 and beyond. Growth will follow a seasonal demand cycle that will occur throughout the year.
With an increase in product prices of 5% per year, we are confident that we will achieve average profit growth of 15% over the next five years. We expect to increase efficiency by investing in digital technology. We should invest on capital expenditure at a maximum 5% of annual sales from 2022.
Due to the uncertainty climate, we will keep our finances at healthy conditions. We will keep our leverage ratio at a maximum of 2x, a quick ratio at a minimum of 150%, and no investment on our CAPEX, except for digital technology. Moreover, most important, we will keep our cash position at the healthiest balance.
We must be able to take this opportunity to grow better in the future.
Focus on Better Future
Alexander
CEO of Common Consumer Goods

Common Consumer Goods (Ytd September 2021)
Sales Unit 2000 units
Price / unit 60.000 / unit
Cost of Good Sold 55% of Revenue
Cost of Good Sold consisted of
Raw Materials Cost (55%),
Labor Cost (35%) and
Other Cost (10%)
Sales Expense 15% of Revenue
General & Admin 10% of Revenue
Interest Expense 5% of Revenue
Tax 30% of EBT
Total Asset 50.000.000
Total Equity 30.000.000
Bank Loan is 50% of Total Liabilities
Account Payable is 20% of Total Liabilities
Cash is 10% of Asset
Inventory is 30% of Asset
Fixed Asset is 40% of Asset
Account Receivable is 15% of Asset
Other Asset is 5% of Asset.

Please prepare your budget based on 3 scenarios
a. Based line (Fact)
b. Aggressive (Finance Version)
c. Achievable (Based on your judgement)

Answer rating: 100% (QA)

Solution Forecasted Income Statement of the company 2021 2022 2023 2024 2025 2026 2027 sales units 2... View the full answer