University:
University of Mississippi
Course:
BUS 271 | Business Communication
Academic year:

2020
Views:

40

Pages:

5
Author:

Oerallerxhcq

CHAPTER V FINANCIAL PLAN Deals with the financial aspect of the proposed business. 5.1: OPERATIONAL COST ITEM COST Rent Ksh.40,000 Permits Ksh.20,000 Partitions Ksh.10,000 Installations Ksh.15,000 Utensils Ksh.10,000 TOTAL Operational cost = Ksh.95, 000 CAPITAL REQUIREMENT Ksh.95,000 Capital requirement for the first three years of the business. 1 Overhead . 2 Permits . 3 Product . YEAR 1 YEAR 2 YEAR 3 Ksh.1, 320, 000 Ksh.1, 500, 000 Ksh.2, 100, 000 Ksh.240, 000 Ksh.240, 000 Ksh.240, 000 Ksh.4, 267, 500 Ksh.6, 300, 000 Ksh.8, 450, 000 TRADING PROFIT AND LOSS ACCOUNT Sales Less cost of sales Add opening stock Gross profit Less operational or overhead expenses Rent Water Electricity Stationery Transport Cleaning Maintenance Depreciation Salaries 2015 2016 2017 10,200,00 7,200,000 100,000 15,500,000 12,000,000 6,000,000 30,000,000 25,000,000 10,000,000 3,000,000 1,320,000 3,500,000 1,200,000 5,000,000 900,000 480,000 300,000 200,00 240,000 90,000 50,000 100,000 34,000 44,000 9,000 694,000 12,000 200,000 140,000 60,000 70,000 43,000 36,000 7,000 702,000 9,000 150,000 200,000 80,000 45,000 50,000 27,000 6,000 800,000 7,000 Postage Trading profit(Loss) 1,680,000 2,300,000 4,100,000 PERFORMER BALANCE SHEET JAYBIE BAKERY BALANCE SHEET AS AT 31 STDECEMBER 2016 Fixed Assets: Premises -Ksh.125, 000 Plant and equipment -Ksh.516, 000 Vehicles -Ksh.3, 500,000 Furniture -Ksh.48, 000 Machinery -Ksh.2, 600, 000 TOTAL =Ksh.6, 789,000 Current Assets Raw materials -Ksh.1, 707,000 Stock -Ksh.900, 000 Debts -Ksh.900, 000 Bank -Ksh.2, 500, 000 Cash -Ksh.6, 500, 000 TOTAL Ksh.12, 507, 000 Current Liabilities Creditors -Ksh.900, 000 Bank Overdraft -Ksh.700, 000 Bank Loans -Ksh.2, 400, 000 Net Current Assets -Ksh.4, 000, 000 TOTAL ASSETS Ksh.8, 000, 000 Represented by Capital -Ksh.12, 507, 000 Profit -Ksh.4, 100, 000 Long Term Liabilities Bank Loans-Ksh.2, 400, 000 Calculate Gross Profit Margin = Gross Profit*100 Sales =3,500,000 *100 15,500,000 =22.58% Net Profit Margin = Net profit * 100 Sales =2,300,000*100 15,500,000 =14.84% Break-even Level of sales = Overhead Expenses * 100 Gross Profit Margin =1,200,000*100 22.58 =Ksh.5, 314, 438