You are on page 1of 5

Creating a comprehensive financial projection, balance sheet, income statement, and cash flow

statement for a herbal oil business with an investment of 1 lakh rupees requires detailed information
and assumptions about the business's revenue, expenses, assets, liabilities, and cash flows. Since you
haven't provided specific details about the business operations, costs, and pricing, I'll provide a
simplified example below to give you an idea of how these statements might look. Please note that
this is a generic example and may not reflect the specific circumstances of your business. It is always
recommended to consult with a financial professional or accountant for accurate financial
projections.

Financial Projection:

Assumptions:

 Initial investment: 1,00,000 INR

 Timeframe: One year

1. Revenue Projections:

 Monthly Revenue: 25,000 INR

 Annual Revenue: 3,00,000 INR

2. Cost Projections:

 Cost of Goods Sold (COGS): 40% of revenue

 Monthly COGS: 10,000 INR

 Annual COGS: 1,20,000 INR

3. Operating Expenses:

 Monthly Operating Expenses: 5,000 INR

 Annual Operating Expenses: 60,000 INR

Balance Sheet:

Assets:

 Cash: 1,00,000 INR (initial investment)

 Inventory: Calculated based on COGS

Liabilities:

 None (assuming no debts or loans)

Equity:

 Owner's Investment: 1,00,000 INR

Income Statement:

Revenue:

 Sales Revenue: 3,00,000 INR


Expenses:

 Cost of Goods Sold: 1,20,000 INR

 Operating Expenses: 60,000 INR

Net Income: Revenue - Expenses = 1,20,000 INR

Cash Flow Statement:

Operating Activities:

 Net Income: 1,20,000 INR

 Depreciation: N/A (assuming no depreciation)

 Changes in Working Capital: N/A (assuming no significant changes)

Investing Activities:

 N/A (assuming no investment in assets)

Financing Activities:

 N/A (assuming no loans or equity transactions)

Net Cash Flow: 1,20,000 INR

Please note that this is a simplified example and does not account for various factors like taxes,
interest, seasonality, and other potential expenses. It is crucial to conduct a more detailed analysis
and consider specific circumstances to create accurate financial projections

Certainly! Here's a table format that presents the financial projection, balance sheet, income
statement, and cash flow statement for a herbal oil business with a 1 lakh rupee investment:

Financial Projection:

Year 1

Initial Investment 1,00,000

Revenue 3,00,000

Cost of Goods Sold (COGS) 1,20,000

Operating Expenses 60,000

Net Income 1,20,000

Balance Sheet:

Year 1

Assets

Cash 1,00,000
Year 1

Inventory To be calculated based on COGS

Total Assets To be calculated

Year 1

Liabilities

None

Total Liabilities None

Year 1

Equity

Owner's Investment 1,00,000

Total Equity 1,00,000

Income Statement:

Year 1

Revenue 3,00,000

Cost of Goods Sold (COGS) 1,20,000

Operating Expenses 60,000

Net Income 1,20,000

Cash Flow Statement:

Year 1

Operating Activities:

Net Income 1,20,000

Depreciation N/A

Changes in Working Capital N/A

Net Cash Flow from Operations 1,20,000

Year 1

Investing Activities:

N/A N/A

Net Cash Flow from Investing N/A


Year 1

Financing Activities:

N/A N/A

Net Cash Flow from Financing N/A

Year 1

Net Cash Flow 1,20,000

Please keep in mind that the values for inventory, changes in working capital, and other specific
items might require additional calculations and information based on the specific circumstances of
your herbal oil business.

To create a financial projection for a herbal oil business with a 1 lakh rupee investment, we'll need to
make certain assumptions about the business's revenue, expenses, and growth. Here's a simplified
example of a financial projection for a one-year period:

Assumptions:

 Initial investment: 1,00,000 INR


 Timeframe: One year

1. Revenue Projections: Assuming the business sells herbal oil bottles at an average price of 200
INR, and expects to sell 500 bottles per month, the revenue projections would be as follows:

 Monthly Revenue: 500 bottles * 200 INR = 1,00,000 INR

 Annual Revenue: 12 months * 1,00,000 INR = 12,00,000 INR

2. Cost Projections: To estimate the cost of goods sold (COGS), assuming it is 40% of the
revenue, we can calculate:

 Monthly COGS: 40% * 1,00,000 INR = 40,000 INR

 Annual COGS: 12 months * 40,000 INR = 4,80,000 INR

3. Operating Expenses: Assuming monthly operating expenses of 20,000 INR, the annual
operating expenses would be:

 Monthly Operating Expenses: 20,000 INR

 Annual Operating Expenses: 12 months * 20,000 INR = 2,40,000 INR

Financial Projection:

Year 1

Initial Investment 1,00,000

Revenue 12,00,000

Cost of Goods Sold (COGS) 4,80,000

Operating Expenses 2,40,000

Net Income 5,80,000

This financial projection assumes that there are no other significant expenses or factors involved. It's
important to note that this is a simplified example, and you should consider additional factors such
as taxes, marketing costs, employee salaries, and other operational expenses based on your specific
business. Additionally, market conditions, competition, and other external factors may impact the
actual financial performance of the business.

You might also like