Hello I need help I have not learned how to do budgeting, financial forecasting, and variance analysis for this please any information or steps would be very helpful!

Company Profile:

Name: BlueSky Technologies Inc.

Industry: Technology $($Cloud Computing Solutions$)$

Location: Austin, Texas

Year Founded: $2016$

Company Description: BlueSky Technologies Inc. specializes in providing cloud$-$based solutions to small and medium$-$sized businesses. The company offers products that enhance data security, streamline operations, and improve remote collaboration capabilities. BlueSky's main product lines include cloud storage solutions, data analytics platforms, and customized cloud$-$based business applications.

Business Model:

BlueSky operates on a subscription$-$based model, with clients paying monthly or annual fees for continuous access to its services. The company invests heavily in R&D to stay ahead in technology advancements and customer satisfaction.

Financial Statements:

Here's an overview of the main elements for BlueSky Technologies Inc.$\text{'}$s financial statements for the fiscal year ending December $31,2023.$

Income Statement

$$ Revenue:

o Subscription Fees: $$14,000,000$

o Professional Services: $$2,000,000$

$$ Total Revenue: $$16,000,000$

$$ Cost of Goods Sold $($COGS$)$:

o Service Delivery Costs: $$4,000,000$

$$ Gross Profit: $$12,000,000$

$$ Operating Expenses:

o Research & Development: $$3,000,000$

o Sales & Marketing: $$2,500,000$

o General & Administrative: $$1,200,000$

o Depreciation & Amortization: $$800,000$

$$ Total Operating Expenses: $$7,500,000$

$$ Operating Income: $$4,500,000$

$$ Interest Expense: $$300,000$

$$ Income Before Tax: $$4,200,000$

$$ Tax Expense $(25\%)$: $$1,050,000$

$$ Net Income: $$3,150,000$

Balance Sheet

$$ Assets:

o Cash: $$1,500,000$

o Accounts Receivable: $$2,000,000$

o Inventory: $$200,000$

o Prepaid Expenses: $$150,000$

o Property, Plant, & Equipment $($net$)$: $$5,000,000$

o Total Assets: $$8,850,000$

$$ Liabilities and Equity:

o Accounts Payable: $$900,000$

o Accrued Liabilities: $$600,000$

o Long$-$term Debt: $$2,500,000$

o Total Liabilities: $$4,000,000$

o Shareholders$$ Equity: $$4,850,000$

o Total Liabilities and Equity: $$8,850,000$

Cash Flow Statement

$$ Operating Activities:

o Net Income: $$3,150,000$

o Adjustments for non$-$cash items $($Depreciation & Amortization$)$: $$800,000$

o Changes in working capital:

$$ Increase in Accounts Receivable: $-$$$800,000$

$$ Increase in Inventory: $-$$$50,000$

$$ Decrease in Accounts Payable: $-$$$100,000$

o Net cash provided by operating activities: $$3,000,000$

$$ Investing Activities:

o Capital Expenditures: $-$$$1,200,000$

o Net cash used in investing activities: $-$$$1,200,000$

$$ Financing Activities:

o Repayment of Long$-$term Debt: $-$$$400,000$

o Net cash used in financing activities: $-$$$400,000$

$$ Net Increase in Cash: $$1,400,000$

$$ Beginning Cash: $$100,000$

$$ Ending Cash: $$1,500,000$

Assignment Tasks:

Students will analyze BlueSky Technologies Inc.$\text{'}$s financial statements to:

$1.$ Assess the financial health and performance of the company.

$2.$ Identify potential areas of concern or opportunities for growth.

$3.$ Suggest financial strategies or business processes improvements based on their analysis.