Required:

a. Prepare quarterly purchase budget for Q1, Q2, Q3, and for Q4 ending December 31, 2021 Assume that forecasted sales for the first quarter of 2022 = $1.2 million.

b. Prepare quarterly general, administration and selling budget for Q1, Q2, Q3, and for Q4 ending December 31, 2021.

c. Prepare quarterly cash budget for Q1, Q2, Q3, and for Q4 ending December 31, 2021.

d. Prepare the pro forma income statement for the year ending December 31, 2021.

e. Prepare the end of the year 2021 pro forma balance sheet.

f. Based on your projections for the four quarters of 2021, indicate (1) whether new bank borrowing (open line of credit) will be needed and (2) if borrowing is needed, when does the need start occurring and what is the maximum amount needed?

g. An analysis of the cash conversion cycle should also help Alma Serah understand what has been happening to the operations of ALMA.com. Prepare an analysis of the conversion periods for the three components of the cash conversion cycle for 2021. Explain what has happened in terms of each component of the cycle during 2021. Ms. Serah should be interested in knowing whether ALMA.com. has been building or burning cash. Comment on the cash build, cash burn, and the net cash build/burn position for 2021.