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Transcription of this question: Las MigasCarolina plans to set up a bakery, Las Migas, in a small town. Competition from establishedbakeries is strong. Carolina has asked for a bank loan because her personal savings areinsufficient. The bank manager requested the following information:• a business plan• a cash flow forecast for the first four months of operations.Carolina has no experience with financial forecasts but she estimated the figures for Las Migas forthe first four months of operations. These figures are shown in Table 1.Table 1: Estimated figures for Las Migas for the first four months of operationsEstimated sales per monthMonthly rentInterestOpening balanceIngredients and suppliesElectricity per monthCarolina’s monthly salaryFor the first two months of operations: $1500From the third month of operations onwards: $3500$1000$45 to be paid every two months starting the firstmonth of operation$1003()% of sales1 % of sales$390(a)(b)(c)State two elements, other than a cash flow forecast, of a business plan.Prepare a cash flow forecast for Las Migas for the first four months of operations.Explain one problem that Las Migas may experience as a new business.