TUTORIAL REPORT

ENTERPRISE DESIGN AND ANALYSIS

FINANCIAL MODULE

1. Alma Fitria Milania

(1852215) Tutorial Date : 9th July 2021
2. Nabila Arista
Name :
(1852267)
3. Fathiya Mujahidina Tutorial Day : Friday
Siregar (18522301)
Due Date
Group Code : IP-03 11th June 2021
Submission
Assistant Code : IPO-77
Yogyakarta, 11th June 2021
Assessment Criteria
Assistant
Format :
Content :
Analysis :
(Fani Setiawan Budiman)
TOTAL :
INNOVATION AND ORGANIZATIONAL DEVELOPMENT
INDUSTRIAL ENGINEERING
FACULTY OF INDUSTRIAL TECHNOLOGY
UNIVERSITAS ISLAM INDONESIA
2021
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CHAPTER IV
MANAGEMENT PLANNING AND OPERATION

4.1.Tutorial Objective
The objectives of the financial module tutorial are as follows:
1. Understand the needs of funds and sources of funds an investment plan
2. Arrange cash flow an investment plan
3. Understand various investment valuation criteria
4. Understand the effect of changes in parameters on investment decisions

4.2.Financial Funds
According to Drs. Kustadi Arinta, funds are a sum of money or other sources that are
set aside to organize certain activities/obtain certain objects by special provisions and
restrictions and compiled as separate financial and bookkeeping units (Rahman, 2017).
Funds for a company or institution are very vital because without funds the continuity
of the company/institution cannot run properly and even stop. Project financing funds
can be classified into fixed capital funds and working capital funds.
a. Fixed Capital Funds
Fixed capital funds are the type of funds that must be paid for business operating costs
including pre-investment activities, building, fixed prices, labor cost, and other costs
needed to build projects.
Table 1. Need for Fixed Capital Funds

Year
No Cost Group
Rupiah Valas

1 Pre investment Rp 20,000,000.00 $ 1,378.26

2 Land (1500 m) Rp 350,000,000.00 $ 24,119.55

3 Building & Equipment

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Year
No Cost Group
Rupiah Valas

Building Rp 300,000,000.00 $ 20,673.90

Water and
electricity Rp 15,000,000.00 $ 1,033.70
installation

Computer Rp 8,000,000.00 $ 551.30

Furniture Rp 8,000,000.00 $ 551.30

AC Rp 4,200,000.00 $ 289.43

Apar (5kg) Rp 400,000.00 $ 27.57

4 Machine dan the equipment

Machine Grinders Rp 29,000,000.00 $ 1,998.48

Copular Casting
Rp. 100,000,000.00 $ 6,891.30
Machine

Machine Paints Rp 11,800,000.00 $ 813.17

Production tools Rp 5,000,000.00 $ 344.57

5 Vehicles and Material

Vehicle (pick up) Rp 140,000,000.00 $ 9,647.82

Material handling Rp 5,000,000.00 $ 344.57

Scrap Iron Rp. 34,000,000.00 $ 2,343.04

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Year
No Cost Group
Rupiah Valas

Paint Rp 7,500,000.00 $ 516.85

Coal Rp. 20,000,000.00 $ 1,378.26

Fuel Cost Rp. 1,000,000.00 $ 68.91

6 Fixed cost Rp. 2,000,000.00 $ 137.83

7 Sales cost Rp. 2,000,000.00 $ 137.83

8 Labor cost Rp. 8,000,000.00 $ 551.30

Amount of Financial
Rp. 1,070,000,000.00 $ 73,736.91
Funds

b. Working Capital Fund

Working capital funds are used by the company to finance the company's operations
while it is operating so that the business can run according to the previous plan.
Table 2. Working Capital Fund Requirements

Year (1)
No Basic Calculation
Basic Calculation Amount

1 Assest Fluent

Supplies Rp. 5,000,000.00

Raw material Rp. 207,500,000.00

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Year (1)
No Basic Calculation
Basic Calculation Amount

1450 x ½(Rp.
Semi-finished goods Rp. 567,675,000.00
783,000.00

1450 x Rp.
Finished goods Rp. 1,135,350,000.00
783,000.00

Machine spare parts Rp. 140,800,000.00

Equipment spare
Rp. 5,000,000.00
parts

Amount of assets
Rp. 2,061,325,000.00
fluent

2. Debt fluent Rp. 705,600,000.00

net working capital Rp. 2,061,325,000.00

3. =Rp.1,355,725,000.00
(1-2) - Rp. 705,600,000.00

Table 3. Capital Structure

CAPITAL STRUCTURE

A. TOTAL PROJECT COST

Fixed Capital Rupiah Valas

Pre investment Rp 20,000,000.00 $ 1,378.26

Land Rp 350,000,000.00 $ 24,119.55

Building and equipment Rp. 335,600,000.00 $ 23,182.97

Machine and equipment Rp. 145,800,000.00 $ 10,074.04

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Vehicles and material handling Rp. 207,500,000.00 $ 14,337.27

Fixed capital procurement Rp. 705,600,000.00 $ 48,753.65

Technology procurement Rp. 8,000,000.00 $ 551.30

Trial production Rp. 39,150,000.00 $ 2,704.90

Loan interest during construction Rp. 105,840,000.00 $ 7,311.61

Unforeseen expenses Rp. 5,000,000.00 $ 344.57

Net working capital Rp. 1,355,725,000.00 $ 93,680.31

Amount of Project cost Rp. 3,258,215,000.00 $ 225,096.24

B. Financing resources

Own capital Rp. 3,000,000,000.00 $ 207,236.01

Long term credit, state bank Rp. 705,600,000.00 $ 48,753.65

Financing amount Rp. 3,705,600,000.00 $ 256,021.76

4.3.Source of Funds
Sources of funds can be sourced from internal or external sources, internal sources of
funds are generated from profits while external sources of funds come from company
owners who are their own capital (Wiliandri, 2011). When a company starts its
business, the owner of the company uses his own capital, because the owner of the
company tends to be more careful in using his funds and will think more about saving
so that he can continue to rotate the capital money. In addition, by using their own
capital at the beginning, the owner of the company can make any decision because it
comes from personal funds, which means there is no need to consult with others. Over
time, when the company has received projects with large capital requirements, the
company will credit money from the bank to get enough capital because sometimes
the capital owned by the company and investors is not enough to cover production
costs.
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4.4.Selling Price
The total cost of direct material, direct labor, and manufacturing overhead transferred
from work in process inventory to finished goods inventory is known as the selling
price. In a simple way, selling price is price at the time of selling or exchange rate of
goods expressed in money (Slamet & Sumarli., 2002). The costs that are taken into
account are the costs of raw materials, labor costs, maintenance costs, cost of goods
manufactured, end products, and also the desired profit value of a product.
Table 4. Determining Selling Price

Raw Material Price Rp. 207,500,000.00

Labor Cost Rp. 8,000,000.00

Maintenance Support Rp. 2,000,000.00

Cost of Good Manufactured (COGM) Rp. 217,500,000

End-product Price Rp. 783,000.00 / unit

Desired Profit (80%) Rp. 348,000.00 / unit

Based on the calculation of the cost of goods manufactured using the full
costing method above, it can be seen that the cost of goods manufactured for deck
drain products is Rp. 217,500,000.00 for 500 deck drain products. If one deck drains,
the cost of goods manufactured (COGM) is Rp. 435,000.00/unit.
The selling price is the price obtained from the sum of the total production
costs plus the mark-up used to cover the company's factory overhead costs. It can also
be said that the selling price is the cost of goods sold plus the profit desired by the
company.
The company determines the profit that will be obtained is 80%, due to two
factors, namely to estimate the capability of buying by the society, as well as looking
at competitors who sell masks, because our products are still included in a new
category on the market so that people still cannot fully accept the product. So that the
profit obtained comes from 80% of the cost of goods sold for each deck drain product
as follows:
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· Finished product = 500 units

· Cost of goods manufactured = Rp 217,500,000.00
· So, The selling price = (Cost of goods sold : Finished product) x 180%
= (Rp 217,500,000.00 : 500) x 180%
= Rp 783,000.00 per unit
Based on the calculation of the selling price, it can be seen that the selling price of one
deck drain product is Rp. 783,000.00

4.5.Net Present Value (NPV)

a. Cash Flow
Cash flow is a report on the flow of cash receipts and disbursements within the
company during a certain period, along with an explanation of the sources of cash
receipts and disbursements (Rudianto, 2010.). The benefit and purpose of the cash flow
statement are to provide information related to transactions or company activities that
affect changes in cash and cash equivalents during an accounting period to internal
and external parties of the company.

Figure 1. Cash Flow

Based on the cash flow diagram for 5 periods, it can be seen that the company's
expenses and income fluctuate. This happens because the units sold each period are
different which causes the cost of raw materials and labor required to produce deck
drain is also different which in turn has an impact on expenses. Likewise with income,
due to different units sold each period so that it has an impact on income. Here is the
detail calculation:
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Figure 2. Cash Flow Calculation

b. NPV Calculation
Net Present Value (NPV) is the difference between the value of cash inflows and the
value of cash outflows over some time. The advantage of NPV is that it can be used
when calculating capital to analyze the potential profits of a project or investment that
will be implemented. The weakness is that it is more difficult to use calculations, the
degree of feasibility is not only influenced by cash flow but also by the economic age
of the investment (Rachadian, Agassi, & Wahyudi, 2013).
The following is a calculation for the NPV value. The NPV calculation is
obtained by calculating the component value of each cost from variable costs, fixed
costs and other costs. In this case the percentage of achievement in this case is 100%,
which means the product will be sold in its entirety for each year from the amount of
sales volume that has been previously determined. And there are no residual costs.

Figure 3. Net Cash Flow

From the calculation in the table above, the NPV values are obtained as follows:

Figure 4. NPV and IRR Calculation

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Calculation of NPV by setting a rate of 10%, the value of the NPV is Rp.
1,160,235,649.58. Then for the calculation of AW with A/P in the 10th year and an
interest rate of 10%, the value is Rp. 306,067,737.40. While the calculation of FW
with F/P in the 10th year and with an interest rate of 10% obtained a value of Rp.
1,868,571,116.00.

4.6.Break Even Point Analysis (BEP)

Break Even Point is a company condition where the total amount of income is equal
to the total costs incurred by the company or the profit and loss is equal to zero
(Supriyono, 2000). Break Even Point means a situation where the company does not
experience a profit and also does not experience a loss, meaning that all costs can be
covered by sales income (Harahap, 2007).
BEP is very important for management to make decisions to withdraw the
product or develop the product, or to close an unprofitable subsidiary. The BEP
calculation is used to find out when the results of the business carried out will reach
the break-even point, which means that there is no profit or loss. The calculated break-
even point is the product BEP and the price BEP.

Figure 5. Assumptions
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Figure 6. Results of BEP

Figure 7. BEP Chart Analysis

4.7.Sensitivity Analysis
Business feasibility study is a study that assesses the scope of comprehensive to assess
the success of a project. The purpose of the project feasibility study is to avoid over-
planting capital that is too large for an activity that turns out to be unprofitable
(Jumingan, 2014). Business feasibility study can be concluded that an activity
evaluates, analyzes, and assesses the worth or not of a business project.
Feasibility analysis is a decision technique, which is an instrument or means
used by agencies to achieve a normative goal. The purpose of a feasibility study is to
avoid concentrated harms and employment loss (Masur & Eric, 2010). The feasibility
analysis done by entrepreneurs to create a profitable business is studied and analyzed.
The advantages of doing a feasibility analysis for the start-up of a nonprofit
organization are outlined, and suggestions are offered (Berry, 2017). From the results
of the calculation of cash flow flows from inflows and outflows, it is obtained for the
calculation of the IRR value as follows:
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Figure 8. IRR's Company

After that, calculate the IRR which is the interest rate that equates the present value of
the cash flow to zero. This IRR is one of the indicators used to measure an asset,
whether the asset will increase or not. Based on the calculation with the rate of 10%,
the IRR calculation is 70.55%. With an IRR value that shows a positive number, this
represents that the company gets a profit of a percentage after achieving the planned
sales target for the next 5 periods and the company can be said to be feasible.

4.8.Conclusion
The conclusion that can be obtained from this report is:
1. This company is a company that produces deck drain. The funds are used for
pre-investment, land, building and the equipment, machines, vehicles and
material handling, fixed costs, sales costs, and labor costs. Then for the source
of funds, this company initially used their own capital or from the owner of the
company, but when they got a big project, they would credit money from the
bank because sometimes the capital owned by the company was not sufficient.
2. Based on the cash flow diagram for 5 periods, it can be seen that the company's
expenses and income fluctuate. This happens because the units sold each period
are different which causes the cost of raw materials and labor required to
produce deck drain is also different which in turn has an impact on expenses.
Likewise with income, due to different units sold each period so that it has an
impact on income.
3. Calculation of NPV by setting a rate of 10%, the value of the NPV is Rp.
1,160,235,649.58. Then for the calculation of AW with A/P in the 10th year
and an interest rate of 10%, the value is Rp. 306,067,737.40. While the
calculation of FW with F/P in the 10th year and with an interest rate of 10%
obtained a value of Rp. 1,868,571,116.00.
4. IRR is one of the indicators used to measure an asset, whether the asset will
increase or not. Based on the calculation with the rate of 10%, the IRR
calculation is 70.55%. With an IRR value that shows a positive number, this
represents that the company gets a profit of a percentage after achieving the
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planned sales target for the next 5 periods and the company can be said to be
feasible. If the IRR is greater than the cost of financing the project (financing
interest rate), the project is feasible. On the other hand, if the IRR is greater
than the financing interest, then the project is not feasible.
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REFERENCES

Berry, G. (2017). Feasibilty Analysis for the New Venture Nonprofit enterprise.
Journal of Entrepreneurship.
Harahap, S. S. (2007). Analisis Kritis atas Laporan Keuangan. Jakarta: PT Raja
Grafindo Persada.
Jumingan. (2014). Studi Kelayakan Bisnis Teori dan Pembuatan Proposal Kelayakan.
Jakarta: PT Bumi Aksara.
Masur, J., & Eric, A. P. (2010). Law Review Against Feasibility Analysis. Chicago:
The University of Chicago.
Rachadian, F. R., Agassi, E. A., & Wahyudi, S. (2013). Analisis Kelayakan Investasi
Penambahan Mesin Frais Baru Pada CV. XYZ. Journal J@TI UNDIP, VIII.
Rahman, A. (2017). Optimalisasi investasi dana biaya penyelenggaraan ibadah haji
tahun 2006 oleh DITJEN penyelenggaraan haji dan umrah kementerian
agama Republik Indonesia. Jakarta: Universitas Islam Negeri.
Rudianto. (2010.). Akuntansi Koperasi (Vol. II). Jakarta: Erlangga.
Slamet, A., & Sumarli. (2002). Pengaruh Perkiraan Biaya Produksi dan Laba yang
Diinginkan Terhadap Harga Jual Pada Industri Kecil Genteng Pres. Jurnal
Ekonomi dan Manajemen, Dinamika.
Supriyono, R. A. (2000). Akuntansi Biaya: Perencanaan dan Pengendalian Biaya
serta Pembuatan Keputusan. Yogyakarta.
Wiliandri, R. (2011). Pengaruh Blockholder Ownership dan Firm Size terhadap
Kebijakan Hutang Perusahaan. Jurnal Ekonomi Bisnis.
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