Post on 18-Feb-2016
5-YEAR FINANCIAL PLAN
FORECASTED REVENUE
Product 1 100 gm 10000 35.00 350,000.00
Product 2 200 gm 8000 65.00 520,000.00
Product 3 250gm 5000 80.00 400,000.00
Product 4 Half Kg 3000 130.00 390,000.00
TOTAL OF FORECASTED REVENUE 1,660,000.00
COST OF GOODS SOLD
Product 1 100 gm 40% 140,000.00
Product 2 200 gm 35% 182,000.00
Product 3 250gm 30% 120,000.00
Product 4 Half Kg 30% 117,000.00
TOATL COST OF GOODS SOLD 559,000.00
ANNUAL MAINTENANCE, REPAIR AND OVERHEAD
Factor (%) on capital equipment 25%
ASSET DEPRECIATION
Number of Years 5
TAX
Annual Tax Rate 4%
INFLATION
Annual Inflation Rate 2%
PRODUCT PRICE INCREASE
Annual Price Increase 5%
FUNDING
Loan Amount 600,000.00
Annual interest rate 9.00%
Term of loan (Year) 5
Monthly rate 0.72%
Payment 122,607.06
Total Amount Payable 613,035.29
Units sold annually
Averageprice per unit
Annual revenue per product
Expected gross margin
Annual cost of goods sold
PROFIT AND LOSS PROJECTION
PROFIT AND LOSS ASSUMPTIONYear 1 Year 2 Year 3 Year 4
Annual cumulative price (revenue) increase 0.00% 5.00% 10.00% 15.00%
Annual cumulative inflation (expense) increase 0.00% 2.00% 4.00% 6.00%
INCOMEYear 1 Year 2 Year 3 Year 4
Revenue
Product 1 100 gm 350,000.00 367,500.00 404,250.00 464,887.50
Product 2 200 gm 520,000.00 546,000.00 600,600.00 690,690.00
Product 3 250gm 400,000.00 420,000.00 462,000.00 531,300.00
Product 4 Half Kg 390,000.00 409,500.00 450,450.00 518,017.50
Total revenue 1,660,000.00 1,743,000.00 1,917,300.00 2,204,895.00
Cost of Sales
Product 1 100 gm 140,000.00 142,800.00 148,512.00 157,422.72
Product 2 200 gm 182,000.00 185,640.00 193,065.60 204,649.54
Product 3 250gm 120,000.00 122,400.00 127,296.00 134,933.76
Product 4 Half Kg 117,000.00 119,340.00 124,113.60 131,560.42
Cost of goods sold 559,000.00 570,180.00 592,987.20 628,566.43
Gross Profit 1,101,000.00 1,172,820.00 1,324,312.80 1,576,328.57
EXPENSES
Operating expenses
Sales and marketing 15,000.00 15,300.00 15,912.00 16,866.72
Depreciation 60,000.00 57,120.00 58,240.00 59,360.00
Insurance 7,500.00 7,650.00 7,956.00 8,433.36
Payroll and Payroll Tax 21,000.00 21,420.00 22,276.80 23,613.41
Property taxes 2,500.00 2,550.00 2,652.00 2,811.12
Maintenance, repair, and overhaul 25,000.00 25,500.00 26,000.00 26,500.00
Utilities 5,000.00 5,100.00 5,304.00 5,622.24
Administrative fees 300.00 306.00 318.24 337.33
Interest expense on long-term debt 13,035.29 - - -
Other 1,000.00 1,020.00 1,060.80 1,124.45
Total operating expenses 150,335.29 135,966.00 139,719.84 144,668.63
TOTAL EXPENSES 150,335.29 135,966.00 139,719.84 144,668.63
TAXES
Income Tax 6,013.41 5,438.64 5,588.79 5,786.75
Other Tax (specify) - - - -
TOTAL TAXES 6,013.41 5,438.64 5,588.79 5,786.75
NET PROFIT 144,321.88 130,527.36 134,131.05 138,881.89
Year 5
20.00%
8.00%
Year 5
557,865.00
828,828.00
637,560.00
621,621.00
2,645,874.00
170,016.54
221,021.50
145,728.46
142,085.25
678,851.75
1,967,022.25
18,216.06
60,480.00
9,108.03
25,502.48
3,036.01
27,000.00
6,072.02
364.32
-
1,214.40
150,993.32
150,993.32
6,039.73
-
6,039.73
144,953.59
BALANCE SHEET PROJECTION
ASSETS
Current Assets Initial balance Year 1 Year 2 Year 3 Year 4
Cash and bank 300,000.00 - 95,678.12 91,969.24 284,340.29 482,582.17
Accounts receivable 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Total inventory 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00
Prepaid Rent expenses 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00
Other current assets 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
Total current assets 665,000.00 269,321.88 456,969.24 649,340.29 847,582.17
Property and Equipment Initial balance Year 1 Year 2 Year 3 Year 4
Furniture and Fixtures 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00
Equipment 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00
Machinery 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
Vehicles 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Less Accumulated depreciation expense 60,000.00 117,120.00 175,360.00 234,720.00
Total Property and Equipment 380,000.00 320,000.00 262,880.00 204,640.00 145,280.00
TOTAL ASSETS 1,045,000.00 589,321.88 719,849.24 853,980.29 992,862.17
LIABILITIES
Current Liabilities Initial balance Year 1 Year 2 Year 3 Year 4
Accounts payable 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Accrued expenses 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Notes payable/short-term debt - - - - -
Other current liabilities 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Total Current Liabilities 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00
Debt Initial balance Year 1 Year 2 Year 3 Year 4
Long-term debt/loan 600,000.00 - - - -
Other long-term debt - - - - -
Total Debt 645,000.00 45,000.00 45,000.00 45,000.00 45,000.00
TOTAL LIABILITIES 645,000.00 45,000.00 45,000.00 45,000.00 45,000.00
EQUITY
Initial balance Year 1 Year 2 Year 3 Year 4
Shahrukh Khan Shares 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
Taha Yaseen Share 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Komal Shaikh Share 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Retained earnings - 144,321.88 274,849.24 408,980.29 547,862.17
TOTAL EQUITY 400,000.00 544,321.88 674,849.24 808,980.29 947,862.17
TOTAL LIABILITIES AND EQUITY 1,045,000.00 589,321.88 719,849.24 853,980.29 992,862.17
Year 5
688,015.76
10,000.00
150,000.00
180,000.00
25,000.00
1,053,015.76
Year 5
150,000.00
80,000.00
50,000.00
100,000.00
295,200.00
84,800.00
1,137,815.76
Year 5
20,000.00
15,000.00
-
10,000.00
45,000.00
Year 5
-
-
45,000.00
45,000.00
Year 5
200,000.00
100,000.00
100,000.00
692,815.76
1,092,815.76
1,137,815.76
CASH FLOW PROJECTION
Operating activities Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net income 144,321.88 130,527.36 134,131.05 138,881.89 144,953.59 692,815.76
Depreciation 60,000.00 57,120.00 58,240.00 59,360.00 60,480.00 295,200.00
Accounts receivable - - - - - -
Inventories - - - - - -
Accounts payable - - - - - -
Amortization - - - - - -
Other liabilities - - - - - -
Other operating cash flow items - - - - - -
Total operating activities 204,321.88 187,647.36 192,371.05 198,241.89 205,433.59 988,015.76
Investing activities Year 1 Year 2 Year 3 Year 4 Year 5 Total
Capital expenditures - - - - - -
Acquisition of business - - - - -
Sale of fixed assets - - - - - 380,000.00
Other investing cash flow items - - - - - -
Total investing activities - - - - - -
Financing activities Year 1 Year 2 Year 3 Year 4 Year 5 Total
Long-term debt/financing - 600,000.00 - - - - - 600,000.00
Total financing activities - 600,000.00 - - - - - 600,000.00
Cumulative cash flow - 395,678.12 187,647.36 192,371.05 198,241.89 205,433.59 388,015.76
Beginning cash balance 300,000.00 - 95,678.12 91,969.24 284,340.29 482,582.17
Ending cash balance - 95,678.12 91,969.24 284,340.29 482,582.17 688,015.76
LOAN AMORTIZATION SCHEDULE
NOTE: Loan Amortization calculations are limited for up to 5 years (60 months).
MONTH BALANCE SCHEDULED PAYMENT PRINCIPAL INTEREST 600,000.00
1 600,000.00 122,607.06 118,282.66 4,324.39
2 481,717.34 122,607.06 119,135.17 3,471.89
3 362,582.17 122,607.06 119,993.81 2,613.25
4 242,588.36 122,607.06 120,858.65 1,748.41
5 121,729.71 122,607.06 121,729.71 877.35