Financial Plan

As we are starting ILY Eco-Packaging Supplies company, we have a huge financial budget plan. At first we
are intending to buy land for setting our business. We’ve decided our manufacturing company will be at
Dumaguete City. For getting a land and making building structure of our company whatever the cost is
needed we’ve mentioned above. We’ll buy our all accessories and machineries. For our plant we will
have to pay Machine settlement cost, Transportation cost etc. For our product’s promotion we are
taking more budgets in marketing than advertising. Because we know marketing is the best way to
increase our product sales. We are hoping that we easily reach our break-even point within 7 months.
Management cost is including with salary, we also categorize employer’s salary with their skills. Here is a
huge expense to buy, transportations, maintenance etc.

General Assumption Amount

Receipts :
Sales 2,000,000
Disbursements :
Land 800,000
Structure 500,000
Plant 500,000
Setting (Machine & Transportations Cost ) 500,000
Raw Materials 700,000
Advertising 800,000
Marketing 800,000
Management 2,000,000

Pro-forma income statement for the first year

Particulars Amount

Sales 93,000,000

Less: Cost of Goods Sold 11,000,000

Gross Profit 82,000,000

Gross Profit percentage 87.54%

Less: Operating Costs

Sales & Marketing exp. 1,000,000

Administrative exp. 2,000,000

Depreciation exp. 8,000,000

Maintenance exp. 200,000

Utilities exp. 50,000

Total Operating Cost 12,000,000

Profit before Interest & Tax 70,000,000

Less Interest expense 20,000,000

Profit before Tax 48,000,000

Less Tax 0

Net Profit (After Tax) 48,000,000

Net Profit percentage 51.96%

(Note: All those costs and revenues are rough estimates. Actual may vary)

Pro-forma Cash Flow Statement of first year

Particulars Amount

Cash Received:

Cash Received from Operations:

Cash Sales 34,000,000

Cash from receivables 58,000,000

Subtotal Cash from Operations 93,000,000

Additional Cash Received:

New long term liability 407,000,000

New investment received 446,000,000

Subtotal Additional Cash received 874,000,000
Total Cash Received 967,000,000

Cash disbursement:

Cash Spending for Operations:

 Cash Spending 4,500,000

Payment of Accounts Payable 11,000,000

Subtotal Cash spending for operations 16,000,000

Additional Cash Spent:

Purchase of land 349,000,000

Purchase of building 116,000,000

Purchase of machinery 157,000,000

Purchase of other fixed assets 58,000,000

Interest payment 20,000,000

Subtotal Additional Cash Spent 719,000,000

Total Cash Spent 735,000,000

Net Cash Flow 23,000,000

(Note: All those costs and revenues are rough estimates. Actual may vary)