GEB2102 – ENTREPRENEURSHIP

MAY 2020 SEMESTER

12nd August 2020

Chemical Engineering 1
Dr. Maisarah
Assignment 3: Projected Cash Flow Statement Analysis

Mohamad Aiman bin Azahazuhari 17003270

Muhammad Aiman bin Zainie 17002099
Muhammad Khairi bin Nordin 17004245
Muhammad faris farhan bin Amir 17002820
Mohamad Hafizuddin bin Abdullah 16003082
Business Idea

Our business idea is to establish a business company named KrukkrapMy Corporation

which a company that indulges in Food and Beverages production industry. We are planning
on introducing our newly snacks product which is Golden Slated Egg Peyek to our country
market as our initial moves to get the brand recognition as a start-up company with the equity
of RM 20,000.00. Our main initial objectives are to create a brand identity, reach out to
potential consumers, and create much-needed awareness for our brand and product, and what
it entails.

1st Statement

For the 1st statement, our start-up starts with total RM 20,000 in cash. Under cash in-
flows segment, our sales are averagely increase since its increment is RM 7,100 between first
month and twelfth month. The increment is supported by expansion of our company in term
employee and equipment. Besides that, there are several assets that we sold since we need to
replace old equipment to new and more efficient equipment. Total value of assets that we sold
is RM 2,200.

After being analysed, if we only have RM 20,000 equity in cash, we would not be able
to survive for the whole year. After doing the January cashflow analysis, we immediately have
a negative equity in the month of February. From the February, we can see the cash outflow is
keep increasing until June with amount of RM 14672.90. It decreases about RM 1000 for the
Next month and slightly decreasing until July. It continues increase and reach the maximum
amount of cash flow from the entire year in November with total amount of RM 16922.40. The
ending cash balance for this cash flow for the entire year is RM -36,360.15.

2nd Statement

For the second version, we have term loan amount of RM40,000.00. From the loan, we
are expecting to cover the capital expenditures, deposits and rents which costs a lot when we
start a business. That is why the cash in-flow and out-flow for the first month is high compared
to the rest of the months. The amount of loan made need to be rational. If it is too low, it will
not enough to cover the costs in our business. If it is too high, the interest that we need to pay
from the loan is going to be higher as well.
 Overall analysis for our second statement cash flow is we could run the business for
the entire year with the help of loan. Starting from February, the cash out flow increasing from
RM11,505.90 to RM12,596.90 if we compare with March. The amount of cash out flow keep
maintain from March until November. In December, cash out flow has increasing amount
which is RM17,036.90.Based on ending cash for entire year, starting from February, the
amount keep decreasing from RM35,091.70 to RM19,944.60 at the end of November.
Fortunately, there is sudden rise amount at the end of year in December consist of
RM21,649.70.