FINANCIAL PLAN

The Kampala Specialized Hospital for the Deaf shall use financial statement as a basis of
financial planning, analysis and decision-making. Internal users such as investors, clients and
other stakeholders of the hospital shall use financial information. Financial information shall be
needed to predict, compare and evaluate hospital’s earnings and profitability. This will also aid
in effective decision-making, investment and managing exposure to risk.

Investment and Financing

The Kampala Specialized Hospital for the Deaf financing will be expected to be met by owner’s
equity which will amount to shs. 39,200,000/=and a long term loan of ug shs. 16,800,000/=from
Centenary Bank contributing to a grand total of Ug shs.56, 000,000/=. The hospital shall ensure
good cash management.
The hospital expects to have a break-even point 8 months after and this will help in price strategy
so as to not only cover the costs but also generate gross profit. And the earn estimated profit of
45% per month.
Assumptions under the Finance Plan
The finance plan of the Kampala Specialized Hospital for the Deaf will be based on the
following assumptions; financial analysis is to cover a period of 3 years. The hospital intends to
retain 65% of the net profits and the shareholders will share 35% in their proportion of funds
contributed as share capital. As shown in the income Act 1997, a corporation tax of 30% shall be
paid every year.

Expenses Schedule.
For 2023
Particulars Cost of sales Distribution(Ambutory Administration Finance
services)

Balance b/f 23,800,000

Rent 14,400,000

Salaries for 64,200,00

medical
workers

Electricity 6,000,000

Loan 4,200,000

Fuel for Motor 9,000,000

van/ Ambulance

License 150,000

Employee 1,000,000
allowances

Depreciation 900,000 1,000,000

Total 23,800,000 9,900,000 86,750,000 4,200,000

For 2024
Particulars Cost of sales Distribution Administration Finance

Balance b/f 28,925,000

Rent 14,400,000

Salaries 65,484,000

Electricity 6,900,000

Loan 4,200,000

Fuel for motor 10,350,000

van

License 150,000

Employee 1,200,000
allowances

Depreciation 900,000 1,000,000

Total 28,925,000 11,250,000 89,134,000 4,200,000

For 2025
Particulars Cost of sales Distribution Administration Finance

Balance b/f 32,970,000

Rent 14,400,000

Salaries for 68,103,360

medical workers

Electricity 7,200,000

Loan 4,200,000

Fuel for motor 12,000,000

van

Depreciation

Total 32,970,000 12,900,000 91,853,360 4,200,000

9.4 Utilities
 Electricity.
The workshop will mainly use hydro electricity and this will require us to connect to
umeme lines and shall be estimated to cost the hospital shs. 2million as installation.
In case of power load shed, the hospital will use a standby generator that will also be
installed at a cost of shs. 1million.
  Water.
The hospital will also require water supply that will be sourced from the Uganda
National Water and Sewage Corporation (UNWSC) and the estimated cost will be
shs. 1million.

Deliveries
The Kampala Specialized Hospital for the Deaf will use a hired motor van/ ambulance that will
be used in transportation of patients who are in critical conditions.
Administration Costs.
The hospital’s administration costs will be based on salary and wages for staff, stationery, utility,
hired motor van fuel, maintenance cost and other miscellaneous expenses.
Revenue Projections.
The Kampala Specialized Hospital for the Deaf will estimate to generate revenue from very
many patients who will need services for our doctors and from the sale medicine such as tablets,
syrups and other related medical products.
The financial plan will be based on the following assumptions;
 The bank loan will be paid after 3year at 25% as the interest rate.
 Sources of finance are both internal by shareholders and external by a bank loan from
Centenary bank.
 Sales will increase by 25%.
 Cost of medical equipments will increase by 15% every year.
 Expenses will also increase by 15%

PROFORMA INCOME STATEMENT.

PARTICULARS 2023 2024 2025

Ug shs. (000) Ug shs. (000) Ug shs. (000)

Revenue 140,000,000 175,000,000 218,750,000

Cost of sales 23,800,000 28,925,000 32,970,000

Gross profit 116,200,000 146,075,000 185,780,000

Distribution costs 9,900,000 11,250,000 12,900,000

Administration costs 86,750,000 89,134,000 91,853,360

Finance costs 4,200,000 4,200,000 4,200,000

Total costs 100,850,000 104,584,000 108,923,360

Profit before tax 15,350,000 41,491,000 76,856,640

Tax 30% 4,605,000 12,447,300 23,056,699

Profit after tax 10,745,000 29,043,700 53,799,648

ASSET SCHEDULE FOR 3YEARS

FOR 2023
PARTICULAR Equipment Motor van/ Ambulance Total

Cost at 1/1/2023 10,000,000 20,000,000 30,000,000

Depreciation (10%) 1,000,000 900,000 1,900,000

NBV as at 31/12/2023 9,000,000 19,100,000 28,100,000

F0R 2024
PARTICULAR Equipment Motor van Total

Cost as at 1/1/2024 9,000,000 19,100,000 28,100,000

Depreciation 1,000,000 900,000 1,900,000

NBV as at 31/12/2024 8,000,000 18,200,000 26,200,000

FOR 2025
PARTICULAR Equipment Motor van Total

Cost as at 1/1/2025 8,000,000 18,200,000 26,200,000

Depreciation 1,000,000 900,000 1900,000

NBV as at 31/12/2025 8,000,000 17,300,000 24,300,000
PROFORMA BALANCE SHEET

PARTICULARS 2023 2024 2025

Ug shs. Ug shs. Ug shs.

Assets

Non-current
assets

Plant and 28,100,000 26,200,000 24,300,000

equipment

Current assets

Closing inventory 1,000,000 700,000 600,000

Receivables 2,000,000 4,000,0 6,000,00

00 0

Bank 25,000,000 50,000, 100,000,

000 00

Cash 10,945,000 10,888, 10,288,3

700 48

38,945,000 65,588,700 116,888,348

Total assets 67,045,000 91,788,700 141,188,348

Equity and
liabilities

Capital 39,200,000 49,945, 78,988,700

000

Profit 10,745,000 29,043, 53,799,648

700

Total equity 49,945,000 132,788,348

Non-current
liabilities

Loan 16,800,000 12,600,000 8,400,000

Current liabilities

Accounts payable 300,000 200,000

Total equity and 67,045,000 91,788,700 141,188,348

liabilities

BREAK EVEN ANALYSIS.

Revenue 140,000,000

Variable cost 40% sales 56,0000

Fixed costs 30,000,000

Total contribution= Total Revenue-Total variable cost

=140,000,000-56,000,000
=84,000,000

Contribution ratio= Total contribution

Total sales
=84,000,000
140,000,000
=0.6
Breakeven point (amount) = Fixed cost
Contribution ratio
=30,000,000
0.6
 =shs.50, 000,000
Breakeven point (unit) =50,000,000
300,000
=167 units