Table of Contents

COVER PAGE................................................................................................................................................2
DECLARATION..............................................................................................................................................3
DEDICATION................................................................................................................................................4
AKNOWLEDGEMENT...................................................................................................................................5
EXECUTIVE SUMMERY.................................................................................................................................6
BUSINESS PLAN: CHALIZ BUTCHERY............................................................................................................7
CHAPTER ONE: BUSINESS DESCRIPTION......................................................................................................7
1.1 Business Name...................................................................................................................................7
1.2 Location and Address.........................................................................................................................7
1.2.1 Location......................................................................................................................................7
1.2.2 Business Address........................................................................................................................8
1.3 Form and type of ownership..............................................................................................................8
1.4 Products and services........................................................................................................................8
1.4.1 Products......................................................................................................................................8
1.4.2 Services.......................................................................................................................................9
1.5 Justification of opportunity................................................................................................................9
1.6 Industry.............................................................................................................................................9
1.7 Goals of the business.........................................................................................................................9
1.7.1 Short term goals.........................................................................................................................9
1.7.2 Long term goals..........................................................................................................................9
1.8 Entry and growth strategy.................................................................................................................9
1.8.1 Entry strategy.............................................................................................................................9
1.8.2 Growth strategy..........................................................................................................................9
CHAPTER TWO: MARKETING PLAN............................................................................................................10
2.1 Potential customers.........................................................................................................................10
2.1.1 Learning Institution...................................................................................................................10
2.1.2 Business people........................................................................................................................10
2.1.3 Hospitals...................................................................................................................................10
2.1.4 Residence of the town..............................................................................................................10
 2.2 Market share...................................................................................................................................10
2.2.2 Business competitors................................................................................................................11
2.2.3 SWOT Analysis..........................................................................................................................12
2.3 Promotion and advertising..............................................................................................................13
2.3.1 Newspaper................................................................................................................................13
2.3.2 Bill boards.................................................................................................................................13
2.3.4 Shows and exhibitions..............................................................................................................13
2.3.4 Use of local radios and television.............................................................................................13
2.4 Pricing strategy................................................................................................................................13
2.5 Sale Tactics......................................................................................................................................13
2.6Distribution Strategy.........................................................................................................................13
CHAPTER THREE........................................................................................................................................14
3.0 ORGANIZATION PLAN......................................................................................................................14
3.1 Organization Structure....................................................................................................................14
3.2 Personnel and Qualification.............................................................................................................14
3.2.1 Key Personnel...........................................................................................................................14
Qualification..............................................................................................................................................14
Roles and responsibility.............................................................................................................................14
3.2.2 Other personnel........................................................................................................................15
3.3 Recruitment, Training and Promotion.............................................................................................17
3.3.1 Recruitment..............................................................................................................................17
3.3.2 Trainining..................................................................................................................................17
3.3.3 Promotion.................................................................................................................................17
3.4Remuneration and incentives...........................................................................................................17
3.4.1 Remuneration...........................................................................................................................17
3.4.2 Incentives..................................................................................................................................18
3.5 License, Permit and by laws.............................................................................................................18
3.5.1 License......................................................................................................................................18
3.5.2 Permit.......................................................................................................................................18
3.5.3 By-laws......................................................................................................................................18
3.6 Business support..............................................................................................................................18
CHAPTER FOUR..........................................................................................................................................19
 4.0 OPERATIONAL PLAN........................................................................................................................19
4.1 Production plan...............................................................................................................................19
4.2 Production Facilities........................................................................................................................19
4.3Production strategy..........................................................................................................................19
4.4 Production Process..........................................................................................................................20
4.5 Regulation affecting projection........................................................................................................20
4.5.1 Environment.............................................................................................................................20
4.5.3 Fire Extinguisher.......................................................................................................................20
4.6.4 First Aid Kit................................................................................................................................21
CHAPTER FIVE............................................................................................................................................22
FINANCIAL PLAN........................................................................................................................................22
5.1 Introduction.....................................................................................................................................22
5.2 Pre-operational cost........................................................................................................................22
5.3Working capital.................................................................................................................................22
5.3 Cash flow projection........................................................................................................................23
5.3.1 Cash flow projection for chaliz butchery for the year ended 2022...........................................23
5.4.2 Cash flow projection for chaliz butchery for the year ended 2023...........................................23
5.4.3 Cash flow projection for chaliz butchery for the year ended 2024...........................................24
5.5 Proforma income statement for chaliz butchery for the year ended 2022, 2023 and 2024............25
5.6 Proforma balance sheet for chaliz butchery for the ending 2022, 2023 and 2024..........................25
5.7 Financial ratios.................................................................................................................................26
5.8 Desired Financing............................................................................................................................26
NAME OF BUSINESS: CHALIZ BUTCHERY

CHALIZ
BUSINESS PLAN BUTCHERY

BUSINESS LOGO

NAME OF PRESENTER: WABWIRE CHARLES BARAZA

ADMISSION NUMBER: ELTOP/DACC/3246/M21

COURSE : DIPLOMA IN ACCOUNTING

COURSE CODE: 2804

PAPER CODE: 2804/307

INSTITUTION: ELDORET TOURISM AND PROFESSIONAL COLLEGE

SUPERVISOR: MR DERRICK OCHIENG

SUBMITTED TO: KENYA NATIONAL EXAMINATIONAL COUNCIL FOR AWARD OF DIPLOMA IN

ACCOUNTING

YEAR OF SUBMISSION: JULY 2022

DECLARATION

I solemnly declare that this business plan is my own work carried out during the course of my
study under the supervisor Mr. Derrick Ochieng

CHARLES BARAZA

………………………………… ………………………………………………….

Sign Date

Super visor

Mr. Derrick Ochieng

…………………………………………………. ………………………………………………

Sign Date
DEDICATION

I dedicate this work to God Almighty my Creator, my source of knowledge,

inspiration,wisedom and understanding. He has been the source of my
Strength throughout this work. I also give special thanks to my parents for
their support and contribution to seeing this work to completion.
AKNOWLEDGEMENT
I am thankful too and fortune enough to get constant encouragement, support and guidance from my
supervisor Mr. Derrick Ochieng who helped me in successfully completing this business proposal work.
EXECUTIVE SUMMERY
The name of proposed business will be Chaliz butchery. The business will be located in Nambale town in
Busia County.

The business will be expecting customers from learning institution, hospitals and business people. The
business will be expecting market share from the following competitors, central butchery,salim butchery
and Apwogo butchery.

The business will hire business manager, supervisor, secretary, accountant and the cleaner. The
proposed business will use production like drawing products offered by business on the wall of the
business building. The business will use equipment like knife, weighing machine, hooks and dust coat.

Material needed for daily production will include electricity, water and labor .Regulation affecting
projection of business will include environmental protection, fire extinguisher, health and safety of
workers and first aid kit. Financial plan of the business will include pre operation cost which will cost 37
000,working capital, cash inflow projections,proforma income statement,proforma balance sheet,
financial ratios and desired financing for the business
BUSINESS PLAN: CHALIZ BUTCHERY

CHAPTER ONE: BUSINESS DESCRIPTION

1.1 Business Name
The name of the proposed business will be Chaliz butchery. The name was
derived from the name of the proprietor Charles. The name has been chosen
because of its popularity in the area hence it will help in generating more
customers

CHALIZ BUTCHERY
1.2 Location and Address
1.2.1 Location
The proposed business will be located in Busia county Nambale constituency,
Namable Town.

NAMBALE –BUSIA HIGHWAY

NAMBALE BOYZ
NAMBALE
CHALIZ
TOWN
BUTCHER
Y

MALANGA ROAD

AMUKURA MALABA HIGHWAY

1.2.2 Business Address

The business address will be

Chaliz butchery

P.O.BOX 113

Nambale-

The business e-mail address will be chalizbutchery@gmail.comThe available

phone number in case of emergency will be 0712306712
1.3 Form and type of ownership
The business will own by one person hence the business will be sole
proprietorship form of business ownership. The owner has decided the kind of
ownership because the business will be easy to manage and easy decision
making. The business may experience challenges limited managerial skills and
unlimited liability under ownership of a sole proprietorship.

1.4 Products and services

1.4.1 Products
The business will be offering products like row meat, boiled meat and fried meat
1.4.2 Services
The business will be offering services like cutting, grinding and preparing meat for
sale. Also services like weighing, packaging, pricing and displaying products will be
offered

1.5 Justification of opportunity

The business will emerge to be the best in town because there is limited number
of butcheries in the town. The name of the business is also popular hence more
customers will be attracted to the business

1.6 Industry
The business will fall under service industry because it will be offering services like
cutting, grinding and preparing meat for sale

1.7 Goals of the business

1.7.1 Short term goals
The main shot term goal of the business is to ensure at least all resident around
the town are benefiting from the business
1.7.2 Long term goals
The business will be targeting to expand and offer services even outside the
country.
1.8 Entry and growth strategy
1.8.1 Entry strategy
The business will use posters to advertise the business because use of posters is
cheap compared to other forms of advertisement.
1.8.2 Growth strategy
While the business grows the proprietor will use magazines and bill boards to
advertise the business.
CHAPTER TWO: MARKETING PLAN
2.1 Potential customers
The proposed business will be expecting customers from the following
organization.
2.1.1 Learning Institution
Teachers and non staffs from nearby schools and colleges will buy meat from the
proposed business.
2.1.2 Business people
The proposed business will expect customers from business people around the
town.
2.1.3 Hospitals
Doctors and patient will also buy meat from the business
2.1.4 Residence of the town
The residence of the town where the business is located will also have chances to
buy goods from the business at affordable price.

2.2 Market share

The proposed business is expecting a market share as follows

15%

45%
chaliz butchery
apwogo butchery
30% central butchery
salim butchery

25%

However as business will be growing the proprietor will be targeting to capture

the market as follows.
 market share

30%
chaliz butchery
Apwogo butchery
45% Central butchery
Salim butchery

15%

10%

2.2.2 Business competitors

2.2.2.1 Apwogo butchery

Apwogo butchery is located 1km away from the business they do sell same
products and services as the one of the proposed business.
2.2.2.2 Central butchery
Central butchery is located 500meters away from Chaliz butchery they sell same
products with the proposed business.
2.2.2.3 Salim butchery
The business is located 1.5km away from chaliz butchery .The business seems to
be the major competitor, because it is large and has opened branches in other
towns.
2.2.3 SWOT Analysis
Busine Strength Weakness Opportunity Threat
ss
Name
Chaliz  Large  Insecurity  Availabilit  Suppl
butche amoun  Unfavorabl y of y
ry t of e customer shorta
capital competitio s ge
 Easy n  Labor  Rising
access availabilit cost
to y of
market produ
ct
Apwog  Moder  Stiff  The  High
o n competitio business taxati
butche technol n is well on
ry ogy  insecurity known  Cost
 Good  Labor of
manag availabilit produ
ement y cts
skills
Centra  Easy  Low level  increased  low
l access of supply of dema
butche to technology commodi nd
ry market  insecurity ties level
 Large  business  high
amoun popularity taxati
t of on
capital
investe
d
Salim  Use of  Insecurity  Continuo  High
butche moder  Large legal us supply taxati
ry n formalities  High on
technol demand  Cases
ogy of
theft
2.3 Promotion and advertising
The proposed business will use the following methods to advertise the business.
2.3.1 Newspaper
The business will use newspaper to advertise the business by ensuring that the
business is being advertised at least twice a week.
2.3.2 Bill boards
The business will site bill boards the whole town to ensure that every person has
full knowledge of the business of the business. The proprietor will ensure that the
bill boards are renewed every month.
2.3.4 Shows and exhibitions
The business will organize for roads shows and exhibitions to promote the
business, these will be done at least a week.
2.3.4 Use of local radios and television
The business will use local radios stations and television to advertise the business,
the proprietor will ensure that the business is advertised in the radio at least
thrice a day

2.4 Pricing strategy

The proprietor will use his competitor price to set the price of his product ,for
example if the competitor is selling 1kgof meat at SH 500 then the proprietor will
set the price of 1kg of meat at SH 480 so as to attract more customers. There will
be no room for bargaining but credit facilities will be available.

2.5 Sale Tactics

The business will adopt direct sale tracts where the buyer will have to face the
seller direct. The business will use the method First in First out (FIFO)where the
product that come first will be sold first the same method will apply to the
customers i.e. first come first serve

2.6Distribution Strategy
The proprietor will use the following distribution channel to ensure that the
product reaches the final consumer

Producer Wholesaler Retailers Consume

CHAPTER THREE
3.0 ORGANIZATION PLAN

3.1 Organization Structure

Business Manager

Supervisor

Accountant Secretary Store keeper

Cleaner

3.2 Personnel and Qualification

1. 3 Kenyan Citizen
2. Above 18 years
3. At least a holder in business administration

3.2.1 Key Personnel

3.2.1.1 Manager
The business will employ a manager who will control and direct the business.

Qualification

Roles and responsibility

 Organizing the business
  Command and giving orders
 Coordinating and controlling the business

3.2.1.2 Supervisor
Qualifications

 A holder of diploma in business management

 3 year working experience
 Above 30 years
 A certificate of good conduct

Roles and responsibilities

1. Supervising junior employees
2. Reporting to the managers matters arising in the business
3. Availing necessary equipments to the workers
3.2.2 Other personnel

3.2.2.1 Accountant
Qualification
a. Should be a holder of diploma in accounting

a. 2years of working experience

b. At least C.P.A 1 and 2

Roles and Responsibility

1. Recording any transaction made in the business

2. Receiving any cash issued
3. Preparing books of accounts of the business
4. Preparing payrolls of other workers
3.2.2.2 Business Secretary
Qualification
I. At least be a holder of diploma in secretarial
II. Certificate of good conduct
III. Above 18 years

Duties

 Directing visitors to the manager

 Keeping all business records
 Budgeting for the business
3.2.2.3 Cleaner
Qualifications

 Kenyan citizen
 At least a form four certificate

Duties

 Cleaning the business environment

3.2.2.4Chef
Qualification

 18years and above

 Certificate in food and beverage

Duties

 Ensuring that employees of the business get food on time

3.3 Recruitment, Training and Promotion
3.3.1 Recruitment
The business will use school and colleges union, newspaper
advertisement, professional agencies and placement firms to look for
employees.
3.3.2 Trainining
The business will be organizing for training programme, the business
will use orientation, job rotation and coaching to train the new employs
3.3.3 Promotion
The business will be using the following strategies to promote its
employees

 When an employee has made a certain improvement in his sector

 When an employee has been in the business for more than two
3.4Remuneration and incentives
3.4.1 Remuneration
Employees Monthly salary Yearly salary
Manager 50 000 600 000
Supervisor 45 000 540 000
Accountant 35 000 420 000
Secretary 35 000 420 000
Cleaner 20 000 240 000
Chef 18 000 216 000
Total 203 000 2 436 000
3.4.2 Incentives

3.4.2.1 Medical cover

All the employees will have medical cover incase of sickness

3.4.2.2 Allowances
All business employees will be entitled to allowances like house
allowance, transport allowance and also Advance activity will be
available.
3.5 License, Permit and by laws
3.5.1 License
The proprietor will acquire trading license from county government to
be permitted to commence the business
3.5.2 Permit
The business will acquire permit from local government at cost of 30
000 Kenya shillings per year for the conduct of business.
3.5.3 By-laws
The sole trader will have to bind with by laws so as to conduct his
business successfully he will comply with Meat supply act of 1963
3.6 Business support
The proposed business will get banking services like loan opportunity
from Faulu bank located in Busia town. The business will cover its
assets and employees from EMMACO Insurance Company.
CHAPTER FOUR
4.0 OPERATIONAL PLAN

4.1 Production plan

Products offered by Chaliz butchery will be drawn on the wall of the business building. Big chats
will be placed on walls consisting of lists of goods available and the latest services. Posters will
be placed in strategic positions bearing the trade names and services offered e.g. on Busia
Kisumu Highway. The production design will cost total of KSH 5000.

4.2 Production Facilities

The following equipment will be necessary for Chaliz butchery firm to be more profitable and
effective.

Equipment Equality Unit price Total cost

Knife 3 150 450
Weighing machine 1 6000 6000
Hammer 2 600 1200
Hooks 6 250 1500
Carrier bags 2 dozen 500 1000
Exe 2 500 1000
Bench 2 250 500
Towels 6 100 600
Dust coat 2 500 1000
Totals 7850

4.3Production strategy
The following materials will be needed every month by the firm for efficient production

Material Cost Source

Electricity 600 Kenya Power limited company
Water 500 Sio port water
Repairing tool 1500 Jane’s hardware
Boiler 2000 Jane’s hardware
1500KGs 675 000 Busia Slaughter house
Labour 12000 Nambale resident
691 000
4.4 Production Process
Employees arrival at the business premise 8:00AM

Roll calls and register taken

Cleaning of premise

Reporting to working area

Receiving customers and visitors

Serving customers at basis of first

in first out

Reports and recommendation done

Collecting feedback from each area

of work

Departing time 6pm

4.5 Regulation affecting projection

4.5.1 Environment
All dust and waste materials from the business will be thrown into dustbin and then handed over to the
relevant authorities for disposal.

4.5.3 Fire Extinguisher

Fire extinguisher will be installed in every corner of the business for easy accessibility incase of fire
outbreak.
4.6.4 First Aid Kit
First Aid kit will be kept in the offices in case of any instant injury also rules will be placed on the notice
board.
CHAPTER FIVE

FINANCIAL PLAN
5.1 Introduction
The financial plan shows the required financial calculation before the business become operational. The
chapter summarizes pre-operational cost, working capital, cash flow projection, proforma income
statement, proform balance sheet, financial ratios and desired financing.

5.2 Pre-operational cost

This is the expenses which the business will incurred before its commencement

Item Amount
Business registration 10 000
Electricity deposit 5000
Advertisement 5000
Rent deposit 3000
Water meter 1500
Post office 2000
Telephone installation 5000
Trade license 6000
Totals 37 500

5.3Working capital
Working capital for Chaliz butchery for the year ending 2022,2023 and 2024 is as follows.

Item Year 2022 Year 2023 Year 2024

Current assets
Cash in hands 450 000 400 000 350 000
Cash in bank 120 000 100 000 60 000
Stock 300 000 250 000 100 000
Debtors 500 000 450 000 350 000
Total current assets 1 370 000 1 200 000 860 000
Current liability
Creditors 30 000 25 000 20 000
Total current liability 30 000 25 000 20 000
Working capital=current 1 340 000 1 175 000 840 000
assets-current liability
 5.3 Cash flow projection
5.3.1 Cash flow projection for chaliz butchery for the year ended 2022

Particulars Jan Feb March80 April May June July August Sept Oct Nov Dec Total
Cash inflow KSH KSH KSH KSH KSH KSH KSH KSH KSH KSH KSH KSH KSH5
Begging capital 570 000 813 450 891600 100425 113165 1279450 1454600 158710 16786 17563 18586 2010 16026800
0 0 0 00 00 00 200
Sale 100000 80000 95000 100000 120000 150000 105000 95000 80000 80000 85000 8000 1170000
0
Debtors 40 000 40000 30000 35000 40000 42300 40500 40500 25000 25000 40500 7035 500000
0
Loan 129 450 - - - - - - - - - - - 129450
Stock 25 000 20000 25000 30000 27000 25000 30500 15000 15000 25000 38750 3875 300000
0
Total cash 864 450 934450 1046600 117425 132095 1494950 1630600 172210 17986 19018 20527 2199 18140750
inflows 0 0 0 00 00 00 300
Cash outflow
Salary 20 000 20000 20000 20000 20000 20000 20000 20 000 2 000 20000 20000 2000 2400000
0
Electricity 5000 4550 4500 4000 3500 3000 5000 5000 3500 5000 4000 3000 50 050
Transport 1500 1300 1350 1500 1500 1350 2000 1500 2000 2000 2000 1500 19500
License 6000 - - - - - - - - - - - 600
Rent 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 1000 120000
0
Telephone 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000
Repairs 2500 2000 1500 2100 1500 1000 1500 2000 1800 2000 1500 2000 21400
Permit 10000 - - - - - - - - - - - 10000
Total cash 51 000 42850 42350 42600 41500 40350 43500 43500 42300 43200 42500 4150 482650
outflow 0
Net cash 813 450 891600 100450 113165 127945 1454600 1587100 167860 17563 18566 20102 2157 17612600
0 0 0 00 00 00 800

5.4.2 Cash flow projection for chaliz butchery for the year ended 2023
Particulars Jan Feb march April May June July August Sept Oct Nov Dec Totals
Cash
inflow
Bal c/d 21578 238980 2502750 261490 272700 284680 29716 309030 31986 3308 3426 3556 34791
00 0 0 0 0 50 0 35 935 936 236 742
Sales 80000 85000 79000 82000 90000 87000 80000 80000 80000 8100 8600 8200 99200
0 0 0 0
Debtors 45000 40000 35000 30000 37000 50000 45500 40000 40000 3700 4000 6050 50000
0 0 0 0
Loan 12945 - - - - - - - - - - - 12945
0 0
Stock 25000 30000 40000 42000 35000 30000 35000 30000 32000 4200 4500 1000 38600
 0 00 0 0
Total cash 24578 254480 2656750 276890 288900 301380 31321 324030 33506 3468 3597 3708 36829
inflow 00 0 0 0 0 50 0 35 936 936 736 743
Cash
outflow
Salary 20000 20000 20000 20000 20000 20000 20000 20000 20000 2000 2000 2000 24000
0 0 0 0
Electricity 3000 3500 3000 3200 3500 3000 3450 3215 3000 3200 3000 3500 35565
Transport 1500 1550 1350 1500 1500 1450 1400 1450 1500 1600 1550 1650 18000
License 6000 - - - - - - - - - - - 6000
Rent 10000 10000 10000 10000 10000 10000 10000 10000 10000 1000 1000 1000 12000
0 0 0 0
Telephone 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000
Repairs 2500 2000 2500 2200 2300 2700 3000 2000 2200 2200 2150 2550 28300
Permit 10000 - - - - - - - - - - - 10000
Total cash 58000 42050 41850 41900 42200 42150 41850 41665 41700 4200 4170 4270 51976
outflow 0 0 0 5
Net cash 23898 250275 2614900 272700 284680 297165 30903 319863 33089 3426 3556 3666 36299
00 0 0 0 0 00 5 36 936 236 036 979

5.4.3 Cash flow projection for chaliz butchery for the year ended 2024
Partic Jan Feb March April May June July Aug Sept Oct Nov Dec Totals
ulars
Bal 366 382258 388623 39942 408173 418633 427958 4334936 437773 44701 455693 461 502744
c/d 603 6 6 36 6 6 6 6 36 6 778
6 6
Sales 500 56000 70000 80000 85000 40000 42000 45000 65000 63000 50000 800 635000
00 00
Debto 350 40000 45000 30000 37000 50000 45500 40000 40000 34000 40000 605 500000
rs 00 00
Loan 129 - - - - - - - - - - - 129450
450-
Stock 200 30000 35000 20000 25000 45000 10000 25000 30000 32000 33000 340 339000
00 00
Total 388 392758 403623 41242 422873 432138 437708 4419986 451278 45991 465993 479 51879
cash 048 6 6 36 6 6 6 6 36 6 223 882
inflow 6 6
Cash
outflo
w
Salary 200 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 200 240000
00 00
Electri 320 3000 3100 3400 3500 3100 3000 3500 3600 3300 3500 370 69900
city 0 0
Trans 150 1350 1400 1500 1450 1400 1600 1300 1450 1500 1250 140 17000
port 0 0
Licens 600 - - - - - - - - - - - 6000
e 0
Rent 100 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 100 120000
00 00
Telep 500 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 500 60000
hone 0 0
Repair 220 2000 2500 2600 2400 2300 2500 2400 2600 2400 2400 250 28800
s 0 0
Permi 100 - - - - - - - - - - - 10000
t 00
Total 579 41350 42000 42500 42350 41800 42100 42200 42650 42200 42150 426 433900
cash 00 00
outflo
w
Net 382 388623 399423 40817 418638 427958 433498 4377786 447013 45569 461778 474 472018
cash 258 6 6 36 6 6 6 6 36 6 968
6 6

5.5 Proforma income statement for chaliz butchery for the year ended 2022,
2023 and 2024
particulars 2022 2023 2024
Sales 1 170 000 992 000 635 000
Less purchases 500 000 250 000 75 000
Gross profit 670 000 742 000 560 000
Less expenses
Salary 240 000 240 000 240 000
Electricity 50 000 35 565 69 900
transport 19 500 18 000 17 100
License 6000 6000 6000
Rent 120 000 120 000 120 000
Telephone 60 000 60 000 60 000
Repairs 21400 28300 28800
Permit 10 000 10 00 10 000
Total expenses 526 900 627 865 445 800
Net profit before tax 143100 114 135 114 200
Net profit after tax 120 204 95 873 95 928

5.6 Proforma balance sheet for chaliz butchery for the ending 2022, 2023 and
2024
Particulars 2022 2023 2024
Fixed assets
Machine 6000 6000 6000
Hammer 1200 2400 5000
Axe 1000 2000 4000
Total fixed assets 8200 10 400 15 000
Current assets
Cash in hand 45000 250 000 350 000
Cash at bank 120 000 450 000 60 000
Stock 300 000 100 000 100 000
Debtors 500 000 400 000 350 000
Total fixed assets 1 370 000 1 200 000 860 000
Current liability
Creditors 30 000 25 000 20 000
Capital 1 348 800 1 185 400 855 000

5.7 Financial ratios

Type of Working 2022 2023 2024

ratio formula
Gross G.P*100/sale 670000/1170000=5.72 742000/992000=0.74 560 000/635000=0.9
profit 7
Return Net profit 143100/1348200*100 95873/1348200*100= 95928/13487200*100=7
on after 7.1% 4.48%
=10%
equity tax*100/own
ers equity
Return Net profit 120204/1348200*100 114135/95873*100=1 114200/1342800*100=7
on after =9% 19% 18.4%
investme tax*100/tota
nt l investment

5.8 Desired Financing

Source Amount
Personal saving 500 000
Friends donation 420 000
Bank loan 200 000
Bank overdraft 220 000
1 340 000