fixed assets

Machineand equipment cost

Machine 700000
refrigerator 200000
tOTAL 900000
office furniture and equipment No. rate cost
table 2 30000 60000
chair 2 10000 20000
visitor chair 4 5000 20000
sofa 1 25000 25000
desktop computer 2 40000 80000
printer and telephone 1 30000 30000
filing cabinet 2 15000 30000
Total 265000
TOTAL FIXED ASSETS 1165000

Working Capital= CA-CL amount

Cash balance 335000
inventory 0
account receivable 0
account payable 0
Total CAPITAL EMPLOYEED (FA+CA-CL) 1500000

source of fund
capital 1/3 500000
15% bank loan 2/3 1000000
total capital 1500000
product veg momo chicken momo Total
daily sales unit 25 80
Annual sales unit 8750 28000
selling price 100 120
sales revenue 875000 3360000 4235000

Year 1 2 3 4 5
sales revenue 4900000 5635000 6480250 7452287 8570131

material requirement and price for 6 units of momo

ingredients qty in kg price per kg total cost
maida 0.45 60 27
chicken 0.3 300 90
onion 0.1 50 5
spices and oil 0.5 200 10
for 6 unit 132
for 1 unit 22
% of cost of material to selling price 18.33333
approx. % of cost of material 20%

cost of material
year 1 2 3 4 5
material 980000 1127000 1296050 1490457 1714026
closing material 22540 25921 29809.15 34280.52 39422.6
opening material 0 22540 25921 29809.15 34280.52
purchase of material 1002540 1130381 1299938 1494929 1719168

cash collection 1 2 3 4 5
total sales 4900000 5635000 6480250 7452287 8570131
closing receivable 50%*1/24 102083.3333 117395.833333333 135005.2 155256 178544.4
opening receivable 0 102083.333333333 117395.8 135005.2 155256
total cash collection 4797916.667 5619687.5 6462641 7432037 8546842

Cash paid to supplier 1 2 3 4 5

purchase of material 1002540 1130381 1299938 1494929 1719168
less: closing payable (100%*1/12) 83545 94198.4166666667 108328.2 124577.4 143264
Add opening payable 0 83545 94198.42 108328.2 124577.4
paid to supplier 918995 1119727.58333333 1285808 1478680 1700482
 selling price grows by 5%
sales volume grows by 10%
sales amt grows by 15%

6
9855650

6
1971130
0
39422.6
1931707

6
9855650
205326
178544.4
9828869

6
1931707
160975.6
143264
1913996
Depreciation on fixed assets
machine and equipments
year 1 2 3 4 5
original cost 900000 900000 900000 900000 900000
BV at begg 900000 720000 576000 460800 368640
Depreciation(20% WDV/ DIMINISHING VALUE) 180000 144000 115200 92160 73728
Accumulated depn 180000 324000 439200 531360 605088
Bv at end 720000 576000 460800 368640 294912

year 1 2 3 4 5
original cost 265000 265000 265000 265000 265000
BV at begg 265000 198750 149062.5 111796.88 83847.66
Depreciation(25% WDV/ DIMINISHING VALUE) 66250 49687.5 37265.63 27949.219 20961.91
Accumulated depn 66250 115937.5 153203.1 181152.34 202114.3
Bv at end 198750 149062.5 111796.9 83847.656 62885.74

Loan amortization schedule

Year 1 2 3 4 5
Beginning loan 1000000 $851,684 $681,122 $484,974 $259,405
PMT $298,316 $298,316 $298,316 $298,316 $298,316
interest payment 150000 127752.67 102168.2 72746.137 38910.72
principal payment $148,316 $170,563 $196,147 $225,569 $259,405
ending loan $851,684 $681,122 $484,974 $259,405 $0

Factory expenses
Year 1 2 3 4 5
Salary: factory staff 2 person 650000 702000 758160 818812.8 884317.8
electricity 48000 48000 48000 48000 48000
water supplies 12000 12000 12000 12000 12000
rent for factory 120000 126000 132300 138915 145860.8
total factory overhead 830000 888000 950460 1017727.8 1090179

operating expenses
salary: office staff 2 person 520000 561600 606528 655050.24 707454.3
electricity and internet 24000 24000 24000 24000 24000
telephone 12000 12000 12000 12000 12000
office supplies 18000 18000 18000 18000 18000
total operating expenses 574000 615600 660528 709050 761454
 6
900000
294912
58982.4
664070.4
235929.6

6
265000
62885.74
15721.44
217835.7
47164.31

6
$0
$298,316
0
$298,316
###

6
955063.2
48000
12000
153153.8
1168217

764050.6
24000
12000
18000
818051
 Income statement
Year 1 2 3
Sales 4,900,000.00 5,635,000.00 6,480,250.00
Less: COGS
MATERIAL COST 980,000.00 1,127,000.00 1,296,050.00
Factory OH(EXCEPT DEPN) 830,000.00 888,000.00 950,460.00
Depreciation-factory machine 180,000.00 144,000.00 115,200.00
cost of poduction 1,990,000.00 2,159,000.00 2,361,710.00
Add: Opening FG (ICP 15 days) - 89,958.33 98,404.58
Less: Closing FG 89,958.33 98,404.58 108,347.72
Cost of goods sold 1,900,041.67 2,150,553.75 2,351,766.86
Gross profit 2,999,958.33 3,484,446.25 4,128,483.14
Less: Operating expenses
Cash operating expenses 574000 615600 660528
Depreciation-office machine 66250 49687.5 37265.625
NPBIT 2,359,708.33 2,819,158.75 3,430,689.51
Less: interest 150000 127752.6671308 102168.2343312
NPBT 2,209,708.33 2,691,406.08 3,328,521.28
Less: Tax 25% of NPBT 552,427.08 672,851.52 832,130.32
Net Income 1,657,281.25 2,018,554.56 2,496,390.96

Statement of Retained Earning

Year 1 2 3
Opening retained earning 0 828,640.62 1,837,917.91
Add: Net income 1,657,281.25 2,018,554.56 2,496,390.96
Less: Dividend payment (50% of NI) 828,640.62 1,009,277.28 1,248,195.48
Closing RE 828,640.62 1,837,917.91 3,086,113.39

Cash flow after tax = NI + Depreciation 1,903,531.25 2,212,242.06 2,648,856.58

 4 5 6
7,452,287.50 8,570,130.62 9,855,650.22

1,490,457.50 1,714,026.12 1,971,130.04

1,017,727.80 1,090,178.57 1,168,217.04
92,160.00 73,728.00 58,982.40
2,600,345.30 2,877,932.70 3,198,329.48
108,347.72 119,913.86 133,263.73
119,913.86 133,263.73 -
2,588,779.16 2,864,582.83 3,331,593.21
4,863,508.34 5,705,547.79 6,524,057.01

709050.24 761454.2592 818050.599936

27949.21875 20961.9140625 15721.43554688
4,126,508.88 4,923,131.62 5,690,284.97
72746.1366116 38910.7242341 0
4,053,762.75 4,884,220.89 5,690,284.97
1,013,440.69 1,221,055.22 1,422,571.24
3,040,322.06 3,663,165.67 4,267,713.73

4 5
3,086,113.39 4,606,274.42 6,437,857.25
3,040,322.06 3,663,165.67 4,267,713.73
1,520,161.03 1,831,582.84 2,133,856.87
4,606,274.42 6,437,857.25 8,571,714.12

3,160,431.28 3,757,855.58 4,342,417.57

 CASH BUDGET
Year 1 2 3 4 5
Opening cash 335,000.00
Collection 4,797,916.67 5,619,687.50 6,462,640.62 7,432,036.72 8,546,842.23
Payment
Paid to material 918995 1119727.58333 1285808.3875 1478679.64563 1700481.59247
Factory expenses 830,000.00 888,000.00 950,460.00 1,017,727.80 1,090,178.57
Operating expenses 574000 615600 660528 709050.24 761454.2592
Loan installement $298,316 $298,316 $298,316 $298,316 $298,316
Tax payment 552,427.08 672,851.52 832,130.32 1,013,440.69 1,221,055.22
Dividend payment 828,640.62 1,009,277.28 1,248,195.48 1,520,161.03 1,831,582.84
Total payment 4,002,378.26 4,603,771.94 5,275,437.74 6,037,374.95 6,903,068.04

Closing cash 1,130,538.41 1,015,915.56 1,187,202.89 1,394,661.76 1,643,774.19

 Balance sheet
Year 1 2 3 4
Assets
Fixed Assets
Book value of factory machine 720,000.00 576,000.00 460,800.00 368,640.00
Book value of office equipment 198,750.00 149,062.50 111,796.88 83,847.66
Total FA 918,750.00 725,062.50 572,596.88 452,487.66

Current assets
Cash 1,130,538.41 1,015,915.56 1,187,202.89 1,394,661.76
Account receivable 102,083.33 117,395.83 135,005.21 155,255.99
Inventory-material 22,540.00 25,921.00 29,809.15 34,280.52
Inventory-Finished goods 89,958.33 98,404.58 108,347.72 119,913.86
Total current assets 1,345,120.07 1,257,636.98 1,460,364.97 1,704,112.14
Total assets 2,263,870.07 1,982,699.48 2,032,961.84 2,156,599.80

Current liability
Account payable 83,545.00 94,198.42 108,328.18 124,577.41
Long term liability $851,684 $681,122 $196,147 $225,569
Total liability 935,229.45 775,319.98 304,475.50 350,146.82

Equity
Capital 500,000.00 500,000.00 500,000.00 500,000.00
Retained earning 828,640.62 1,837,917.91 3,086,113.39 4,606,274.42
Total equity 1,847,415.07 2,707,436.30 3,498,917.06 5,080,998.64
Total liability and equity 2,782,644.52 3,482,756.28 3,803,392.56 5,431,145.47
 5

294,912.00
62,885.74
357,797.74

1,643,774.19
178,544.39
39,422.60
133,263.73
1,995,004.91
2,352,802.65

143,264.02
$0
143,264.02

500,000.00
6,437,857.25
6,724,385.28
6,867,649.30
 Cost of capital 15%+12% 17%
Year Cash flow
0 NCO -1500000
1 CFAT 1,903,531.25
2 CFAT 2,212,242.06
3 CFAT 2,648,856.58
4 CFAT 3,757,855.58
5 Final CFAT 1,261,575.07

NPV $5,977,688.92
IRR 140%

Break even point

Sales 4,900,000.00 5,635,000.00
VC = material 980,000.00 1,127,000.00
FC (factory OH + Depreciation + operating expenses) 1,650,250.00 1,697,287.50
pv ratio = 1-VC/Sales 0.8 0.8
BEP (in Rs.) 2,062,812.50 2,121,609.38

Ratios
Current ratio 16.10 13.35
 Final CFAT + WC+ Cashvalue of old assets

6,480,250.00 7,452,287.50 8,570,130.62

1,296,050.00 1,490,457.50 1,714,026.12
1,763,453.63 1,846,887.26 1,946,322.75
0.8 0.8 0.8
2,204,317.03 2,308,609.07 2,432,903.43

13.48 13.68 13.93

Time value of money
present value 5000 Present value ? Present value annuity
future value future value 5000 PMT= Installment Payment
rate R% 12% rate R% 12% rate R%
no. of period 5 no. of period 5 no. of period

FV $8,811.71 PV $2,837.13 PVA

present value 5000 present value 5000 Present value annuity

future value 8811.71 future value 8811.71 PMT= Installment Payment
rate R% ? rate R% 12% rate R%
no. of period 5 no. of period ? no. of period

FV 12% Period 5.0000016 PMT

? Future value annuity ?
5000 PMT= Installment Paym 5000
12% rate R% 12%
5 no. of period 5

$18,023.88 FVA $31,764.24

18023.88
?
12%
5

($5,000.00)