INTRODUCTION
The financial plan is the final step in the preparation of the business plan in achieves the
mission, vision and goals of the business. It is the most important aspect of the business plan
and involves the determining and the total project cost, choice of sources of financing and
the preparation of the financial projection in terms of pro forma statements, which include
cash flow, income statements and balance sheet.
Financial information.
The estimated cost to start the business is about RM 70, 000.00. The sources of fund are contributes from partners
as opening capital.
Capital Expenditure
Equipment of shop 5
7,185
5
5
Sales/Marketing
Signboard 8
1,000
Motorcycle 5
20,000
5
5
Operations/Technical
Refrigerator 5
3,600
Centrifugal and Masticating
5
Juicers Machine 2,100
Commercial Blender 5
600
Ice Machine 5
1,600
Total
37,085
Pre-Operating & Working Capital Projections
Pre-Operating & Incorporation Costs (one-off) RM
Development cost 1,000
Business incorporation 70
7 0 0 - 7 0 0 -
8 0 0 -
8 0 0 -
9 0 0 -
9 0 0 - 10 0 0 -
10 0 0 -
Type of Fixed Asset Signboard Type of Fixed Asset Motorcycle
- - 1,000 - - 20,000
8 125 1,000 - 8 0 0 -
9 0 0 - 9 0 0 -
10 0 0 - 10 0 0 -
Type of Fixed Asset Refrigerator Centrifugal and Masticating Juicers
Type of Fixed Asset Machine
Cost (RM) 3,600
Cost (RM) 2,100
Depreciation Method Straight Line
Depreciation Method Straight Line
Economic Life (yrs) 5
Economic Life (yrs) 5
Annual Accumulated
Year Book Value
Annual Accumulated
Year Book Value
Depreciation Depreciation
Depreciation Depreciation
- - 3,600
- - 2,100
1 720 720 2,880
1 420 420 1,680
2 720 1,440 2,160
2 420 840 1,260
3 720 2,160 1,440
3 420 1,260 840
4 720 2,880 720
4 420 1,680 420
5 720 3,600 - 5 420 2,100 -
6 0 0 - 6 0 0 -
7 0 0 - 7 0 0 -
8 0 0 - 8 0 0 -
9 0 0 - 9 0 0 -
10 0 0 - 10 0 0 -
Type of Fixed Asset Commercial Blender Type of Fixed Asset Ice Machine
- - 600 - - 1,600
6 0 0 - 6 0 0 -
7 0 0 - 7 0 0 -
8 0 0 - 8 0 0 -
9 0 0 - 9 0 0 -
10 0 0 - 10 0 0 -
Pro-forma Cash Flow Statement
2019MONTHLY CASH FLOW
2019
Pre-
MONTH January February March April May June July August September October November December
Operations
CASH INFLOW
67,552 67,552
Capital (Cash)
Loan 0 0
Cash Sales 24,500 18,000 25,000 21,000 15,000 18,000 14,000 16,000 21,000 22,000 24,500 24,500 243,500
Collection of Accounts 0 0 0 0 0 0 0 0 0 0 0 0 0
Receivable
TOTAL CASH RECEIPT 67,552 24,500 18,000 25,000 21,000 15,000 18,000 14,000 16,000 21,000 22,000 24,500 24,500 311,052
CASH OUTFLOW
CASH INFLOW
67,552 0 0
Capital (Cash)
Loan 0 0 0
Cash Sales 243,500 255,675 281,243
Collection of Accounts Receivable 0 0 0
Less: Expenditure
Interest on Hire-Purchase
Interest on Loan
Owners' Equity
Capital 67,552 67,552 67,552
Accumulated Income 34,352 73,046 127,125
101,904 140,598 194,678
Long-Term Liabilities
Loan Balance
Hire-Purchase Balance
-
Current Liabilities
Accounts Payable
Return on Equity 33.71% 27.52% 27.78% Net Profit 42,940 48,368 67,599
TIME TO BREAK-EVEN
Less than 1 year