Pro-forma Income Statement & Percentage of sales for year 2020:

2020 (1st
In Taka % 2020 (2nd quarter)
quarter)
Sales 9,60,000 100 14,40,000
Less- Expenses (60%) (5,67,000) (8,64,000)
Taxable Income 3,93,000 5,76,000
2020 (3rd quarter)
19,20,000
(11,52,000)
7,68,000

Less- Taxes (15%) (58,950) (86,400)

100
34

100

(1,15,200)
6,52,800 34

%%

Net
3,34,050 34.80 4,89,600
Income

Pro-forma Income Statement &Percentage of Sales for year 2021 to 2024:

12-7

In Taka

-Expenses (60%)

-Tax (15%)

2022 %

100 100

-47,52,000

31,68,000

-4,75,200
34 26,92,800 34
2023

-51,84,000

34,56,000

-5,18,400

29,37,600

% 2024 %

100 100

-60,48,000

40,32,000

-6,04,800
34 34,27,200 34

2021 %

Sales 72,00,000

79,20,000

86,40,000

1,00,80,000
-43,20,000

-4,32,000

Taxable Income 28,80,000

Net Income 24,48,000

Cash flow projections:

Estimating anticipated cash flow projections can help boost our business’s success.

We have a leftover cash of 50,000 Taka from the initial capital. So we are using this amount
as the beginning cash flow of year 2020.

12-8
In Taka 2020 2021 2022 2023 2024

Beginning Cash 50,000 30,000 85,450 1,79,150 2,19,150

Cash inflow
43,20,000 72,00,000 79,20,000 86,40,000 1,00,80,000
(sales)
Total 43,70,000 72,30,000 80,05,450 88,19,150 1,02,99,150
Cash outflow
(28,43,550) (47,52,000) (52,27,200) (57,02,400) (66,52,800)
(expenses & tax
(14,96,450) (24,78,000) (26,84,550) (30,76,750) (35,76,350)
expense)
Total cash flow 30,000 55,450 93,700 40,000 70,000

Closing Balance 30,000 85,450 1,79,150 2,19,150 2,89,150

Pro-forma Balance Sheet:

As sales are growing, so we have to increase the fixed asset capacity and equity.
In year 2020, we will start our production activities with fixed asset of 15, 00,000 Taka. We
need this15, 00,000 Taka to buy some equipment and some chairs and tables for preparing
food for the customer. In the next year, we will buy more fixed assets like fridge, blenders,
cookers which cost around 25, 80,000 Taka. We hope that during 2022 to 2024 our
production capability and customer capacity will increase so that we may have to bring some
new and smart equipment also some innovation cost for supporting our activities. Taka 27,
00,000; 28, 75,000; 30, 00,000 will be invested on advanced equipment like ovens, more
chair tables, decorations in the following years.

12-9
In Taka

Inventories

2020

4,50,000

2021

8,31,750

2022

5,08,000

2023
6,60,000

2024

7,20,000

Current Assets: 30,00 55,45 40,00

93,700 70,000
Cash 0 0 0
Total current Assets 4,80,000 8,87,200 6,01,700 7,00,000 7,90,000
Fixed Assets(Building, 25,80,00 28,75,00
15,00,000 27,00,000 30,00,000
Machines) 0 0
34,67,20 35,75,00
Total Assets 19,80,000 33,01,700 37,90,000
0 0

Total liabilities

3,03,550

5,19,200

5,00,000

3,37,400

2,20,000

Total equity 2,00,000 5,00,000 1,08,900 3,00,000 1,42,800

24,48,00 26,92,80 29,37,60
Net income after tax 14,76,450 34,27,200
0 0 0
34,67,20 41,01,70 35,75,00
Total Liabilities & Equity 19,80,000 37,90,000
0 0 0

12

Break-even Analysis (in unit & Taka sales)

Assuming that 50% of the expense is fixed cost and other 50% is variable cost.

Break-even point (units) = Total Fixed cost /Contribution margin Contribution margin
= (unit sales- unit variable cost)
Break-even point (Taka) = Break-even point*unit sales

In Taka 2020 2021 2022 2023 2024

 28,51,20
Total fixed cost 14,21,775 23,76,000 26,13,600 3326400
0
Contribution margin 400-132=268 268 268 268 268
Break-even point (unit) 5,306 8866 9752 10639 12412
Break-even point 42,55,60
2122053 3546269 3900800 49,64,800
(Taka) 0

11

So, in those points the total profit will be equal to the total expense. Or, Total profit - Total
expense= 0