FINANCIAL PLANNING

© Ismail Ab.Wahab, MEDEC, UiTM, 2006

NAME OF BUSINESS/COMPANY POPCORN CRUSH

1. Projected administrative, marketing and operations expenditure :

ADMINISTRATIVE EXPENDITURE MARKETING EXPENDITURE OPERATIONS EXPENDITURE

Fixed Assets RM
Fixed Assets RM Fixed Assets RM
Land & Building
Furniture & Supplies 2,910 Banners 600 Machineries 30,500
Signboard 300 Operations components 600

Working Capital Working Capital Working Capital

Salary (SOCSO, EPF) 10,702 Utilities 300 Raw Materials & Packaging 75,770
Salary 3,378 Carriage Inward & Duty
Salaries, EPF & SOCSO 4,500
Overhead cost 49,900

Other Expenditure Other Expenditure Other Expenditure

Other Expenditure 100 Other Expenditure 2430 Other Expenditure
Pre-Operations Pre-Operations Pre-Operations
Deposit (rent, utilities, etc.) 300 Deposit (rent, utilities, etc.) Deposit (rent, utilities, etc.)
Business Registration & Licences 1,330 Business Registration & Licences Business Registration & Licences
Insurance & Road Tax for Motor Vehicle Insurance & Road Tax for Motor Vehicle Insurance & Road Tax for Motor Vehicle
Other Expenditure 149 Other Expenditure 2,500 Other Expenditure 600
TOTAL 15,491 TOTAL 9,508 TOTAL 161,870

2. Projected sales and purchases: SALES PROJECTION PURCHASE PROJECTION

Year 1 Month 1 104,037 Month 1 75,770
Month 2 200,000 Month 2 6,500
Month 3 104,037 Month 3 6,500
Month 4 104,037 Month 4 6,500
Month 5 104,037 Month 5 6,500
Month 6 104,037 Month 6 6,500
Month 7 104,037 Month 7 6,500
Month 8 104,037 Month 8 6,500
Month 9 104,037 Month 9 6,500
Month 10 104,037 Month 10 6,500
Month 11 104,037 Month 11 6,500
Month 12 104,037 Month 12 6,500
Total Year 1 1,344,407 Total Year 1 147,270
Year 2 ToTal Year 2 1,500,000 ToTal Year 2 59,400
Year 3 Total Year 3 1,607,200 Total Year 3 68,310

3. Collection for sales & payment for purchases: CASH COLLECTIONS FOR SALES CASH PAYMENTS FOR PURCHASES
In the month of sale 100% In the month of purchase 100%
1 month after sale 1 month after purchase
2 months after sale 2 months after purchase
Total 100% Total 100%
4. Economic life of fixed assets & FIXED ASSETS Econ. Life (yrs) FIXED ASSETS Econ. Life (yrs)
depreciation method: Furniture & Supplies 5 5
- 5 5
- 5 Machineries 5
- 5 Operations components 5
Banners 5 5
Signboard 5 5

DEPRECIATION METHOD (1=straight line, 2=declining balance) 1

5. Increase in working capital (if any): INCREASE IN WORKING CAPITAL (%)

Year 2 10%
Year 3 15%

6. Ending stock for raw materials ENDING STOCK OF RAW MATERIALS RM ENDING STOCK OF FINISHED GOODS RM
and finished goods: End of Year 1 800 End of Year 1 3,000
End of Year 2 1,000 End of Year 2 3,400
End of Year 3 1,200 End of Year 3 3,800

7. Rate of taxation (for private limited company): TAX RATE

Year 1 28%
Year 2 28%
Year 3 28%

8. Business background: BUSINESS LEGAL ENTITY 1 NATURE OF BUSINESS 1

1 = Private Limited Cpmpany (Sdn. Bhd.) 1 = Manufacturing
2 = Partnership 2 = Trading
3 = Sole Proprietorship 3 = Service

9. Sources of finance: LOAN (if required)

Interest rate 5%
Loan duration 5
Interest payment method* 2
* Method: 1 = flat rate 2 = annual rest

HIRE-PURCHASE (if required)

Interest rate 5%
Hire-purchase duration 5

Click here to allocate the sources of finance

 POPCORN CRUSH
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE
Project Implementation Cost Sources of Finance
Requirements Cost Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing F. Assets
Land & Building
Furniture & Supplies 2,910 2,910

Banners 600 600

Signboard 300 300

Machineries 30,500 30,500

Operations components 600 600

Working Capital 1 months

Administrative 10,702 10,702
Marketing 3,678 3,678
Operations 130,170 130,170
Pre-Operations & Other Expenditure 7,409 7,409
Contingencies 10% 18,687 13,107 5,580

TOTAL 205,556 191,967 13,589

INPUT CASH FLOW STATEMENT INCOME STATEMENT BALANCE SHEET FINANCIAL PERFORMANCE
 POPCORN CRUSH
CASH FLOW PRO FORMA STATEMENT
MONTH Pre-Operations 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL YR 1 YEAR 2 YEAR 3

CASH INFLOW
Capital (Cash) 13,589 13,589
Loan 191,967 191,967
Cash Sales 104,037 200,000 104,037 104,037 104,037 104,037 104,037 104,037 104,037 104,037 104,037 104,037 1,344,407 1,500,000 1,607,200
Collection of Accounts Receivable
TOTAL CASH INFLOW 205,556 104,037 200,000 104,037 104,037 104,037 104,037 104,037 104,037 104,037 104,037 104,037 104,037 1,549,963 1,500,000 1,607,200

CASH OUTFLOW
Administrative Expenditure
Salary (SOCSO, EPF) 10,702 10,702 10,702 10,702 10,702 10,702 10,702 10,702 10,702 10,702 10,702 10,702 128,424 141,266 162,456

Marketing Expenditure
Utilities 300 300 300 300 300 300 300 300 300 300 300 300 3,600 3,960 4,554
Salary 3,378 3,378 3,378 3,378 3,378 3,378 3,378 3,378 3,378 3,378 3,378 3,378 40,536 44,590 51,278

Operations Expenditure
Cash Purchase 75,770 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 147,270 59,400 68,310
Payment of Account Payable
Carriage Inward & Duty
Salaries, EPF & SOCSO 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000 59,400 68,310
Overhead cost 49,900 49,900 49,900 49,900 49,900 49,900 49,900 49,900 49,900 49,900 49,900 49,900 598,800 658,680 757,482

Other Expenditure 2,530 2,530 2,783 3,200

Pre-Operations
Deposit (rent, utilities, etc.) 300 300
Business Registration & Licences 1,330 1,330
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure 3,249 3,249
Fixed Assets
Purchase of Fixed Assets - Land & Building
Purchase of Fixed Assets - Others 34,910 34,910
Hire-Purchase Down Payment
Hire-Purchase Repayment:
Principal
Interest
Loan Repayment:
Principal 3,199 3,199 3,199 3,199 3,199 3,199 3,199 3,199 3,199 3,199 3,199 3,199 38,393 38,393 38,393
Interest 800 800 800 800 800 800 800 800 800 800 800 800 9,598 7,679 5,759
Tax Payable 98,529 98,529 144,441 134,251
TOTAL CASH OUTFLOW 39,789 151,079 79,279 79,279 79,279 79,279 79,279 79,279 79,279 79,279 79,279 79,279 177,808 1,161,469 1,160,592 1,293,994
CASH SURPLUS (DEFICIT) 165,767 (47,042) 120,721 24,758 24,758 24,758 24,758 24,758 24,758 24,758 24,758 24,758 (73,771) 388,494 339,408 313,206
BEGINNING CASH BALANCE 165,767 118,725 239,445 264,203 288,961 313,718 338,476 363,234 387,991 412,749 437,507 462,264 388,494 727,902
ENDING CASH BALANCE 165,767 118,725 239,445 264,203 288,961 313,718 338,476 363,234 387,991 412,749 437,507 462,264 388,494 388,494 727,902 1,041,107

INPUT INCOME STATEMENT BALANCE SHEET FINANCIAL PERFORMANCE © Ismail Ab.Wahab

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 POPCORN CRUSH
PRODUCTION COST PRO-FORMA STATEMENT
Year 1 Year 2 Year 3

Raw Materials
Opening Stock 0 800 1,000
Current Year Purchases 147,270 59,400 68,310
Ending Stock 800 1,000 1,200
Raw Materials Used 146,470 59,200 68,110
Carriage Inward
146,470 59,200 68,110
Salaries, EPF & SOCSO 54,000 59,400 68,310
Factory Overhead
Depreciation of Fixed assets (Operations) 6,220 6,220 6,220
Overhead cost 598,800 658,680 757,482

Total Factory Overhead 605,020 664,900 763,702

Production Cost 805,490 783,500 900,122

POPCORN CRUSH
PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3

Sales 1,344,407 1,500,000 1,607,200
Less: Cost of Sales
Opening Stock of Finished Goods 3,000 3,400
Production Cost 805,490 783,500 900,122
less: Ending Stock of Finished Goods 3,000 3,400 3,800
0 0 0
802,490 783,100 899,722
Gross Profit 541,917 716,900 707,478

Less: Enpenditure
Administrative Expenditure 128,424 141,266 162,456
Marketing Expenditure 44,136 48,550 55,832
Other Expenditure 2,530 2,783 3,200
Business Registration & Licences 1,330
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure 3,249
Interest on Hire-Purchase
Interest on Loan 9,598 7,679 5,759
Depreciation of Fixed Assets 762 762 762

Total Expenditure 190,029 201,040 228,010

Net Profit Before Tax 351,888 515,860 479,468
Tax 98,529 144,441 134,251
Net Profit After Tax 253,359 371,419 345,217
Accumulated Net Profit 253,359 624,779 969,996

INPUT CASH FLOW STATEMENT BALANCE SHEET FINANCIAL PERFORMANCE

© Ismail Ab.Wahab
 POPCORN CRUSH
PRO-FORMA BALANCE SHEET
Year 1 Year 2 Year 3
ASSETS

Fixed Assets (Book Value)

Land & Building
Furniture & Supplies 2,328 1,746 1,164

Banners 480 360 240

Signboard 240 180 120

Machineries 24,400 18,300 12,200

Operations components 480 360 240

27,928 20,946 13,964

Current Assets
Stock of Raw Materials 800 1,000 1,200
Stock of Finished Goods 3,000 3,400 3,800
Accounts Receivable
Cash Balance 388,494 727,902 1,041,107
392,294 732,302 1,046,107
Other Assets
Deposit 300 300 300

TOTAL ASSETS 420,522 753,548 1,060,371

Owners' Equity
Capital 13,589 13,589 13,589
Accumulated Profit 253,359 624,779 969,996
266,948 638,368 983,585
Long Term Liabilities
Loan Balance 153,574 115,180 76,787
Hire-Purchase Balance
153,574 115,180 76,787
Current Liabilities
Accounts Payable

TOTAL EQUITY & LIABILITIES 420,522 753,548 1,060,371

INPUT CASH FLOW STATEMENT INCOME STATEMENT FINANCIAL PERFORMANCE