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Table of Contents
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Baby Nappies World
We realise the fact that for us to prosper in this relatively untapped market, there is need to be
flexible and responsive, to delight our customers by providing them with what they want, when
they want it and in the exact quantity. Our primary goal will be to establish and strengthen our
existence in the market, which will be bestowed by the business environment in which we
function.
Our marketing strategy will be based mainly on ensuring that customers know about our
existence and the products we produce. Hence our intention is to make the right information
available to the right target customers. This will be done through implementing a market
penetration strategy that will ensure that we are well known and respected in the market. We
will ensure that our products' prices are favorable relative to our South African counterparts'
prices, and that our potential customers appreciate the quality of our products. However, the
prices we charge will also take into consideration the cost of production and distribution so as to
ensure that we remain viable and operational. We appreciate the fact that the majority of
wholesalers and intermediaries that order our products perceive South African products to be of
higher quality and reliability. To counteract this there will be need for us to not only
aggressively market the high quality of our products, but also to go out of our way in serving
our customers and clients so as to establish a good long-term relationship.
Our target markets will primarily constitute institutions, wholesalers and other intermediaries
who often order in bulk for their customers, and concerned individuals. Hence there will be
need to network with the various decision-makers/order-makers to ensure we receive orders
for our products.
We intend to compensate our personnel well, so as to retain their invaluable expertise and to
ensure job satisfaction and enrichment through delegation of authority. We intend to achieve
optimal productivity whilst realizing the full potential of each of our employees through
provision of health care, generous profit sharing, plus a minimum of three weeks vacation.
Awards will be given out to outstanding individuals for hard work and production so as to not
only show our appreciation, but to instill a sense of fun into the work and promote the
maintenance of high standards.
We project sales to increase from more than P748,800 the first year to more than P1,075,200
the second, and P1,142,400 in the third year.
Ultimately the attractiveness of our venture lies with the fact that customers will choose our
products above those of competitors because of the relatively lower prices as well as their high
quality. Hence Baby Nappies World's ongoing initiatives will be to drive sales, market share and
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Baby Nappies World
productivity so as to provide additional impetus towards attainment of the corporate goals and
objectives.
1
Courtesy: Central Statistic Office
NOTE: All currency figures in this plan are in Botswanan Pula (P).
Chart: Highlights
Highlights
P1,200,000
P1,000,000
P800,000
Sales
P600,000
Gross Margin
Net Profit
P400,000
P200,000
P0
Year 1 Year 2 Year 3
3. Assembly Technology: To ensure quality diapers and sanitary pads it is essential to utilize
the latest and most efficient production machines. We also intend to keep abreast with
technological developments, which will ensure we gain and maintain a competitive
advantage utilizing the latest production techniques.
4. Networking: As the majority of our customers will be wholesalers and intermediaries there
is need to effectively network with the various decision-makers and order-makers to ensure
a ready market.
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Baby Nappies World
1.2 Objectives
Our business strategy will revolve around the need to provide quality disposable baby nappies,
geriatric/adult diapers and sanitary pads to the various institutions and wholesalers that need
them, in the process fully satisfying their requirements. This shall be undertaken through
adequate training and recruitment of a professional team dedicated to providing and catering
the customer's needs.
We intend to ensure that our marketing campaign increases the knowledge of our products and
services to the various market segments we shall be targeting. This is particularly so with
organisations increasingly looking at obtaining quality products at the lowest prices as they
strive to increase profitability.
We also intend to have well laid out introductory letters and other promotional material that will
enable clients to have an understanding of the types of products we offer and advantages of
utilizing them. In addition well-done company profiles and business cards often have a
triggering effect on clients contemplating ordering our products. Hence this will undoubtedly
generate increased sales of our products.
In summary we intend to attain the following objectives:
Continuously provide high quality diapers and sanitary pads on time and on budget.
Develop enthusiastically satisfied customers all of the time.
Ensure economical use of resources from capacity utilization, minimising inventory/stock
and low cost, and high quality materials.
Contribute positively to our communities and our environment.
Establish a market presence that assures short-term and long-term profitability, growth and
market share, which will ultimately convert to business success.
1.3 Mission
We are fully committed towards the production and delivery of high quality disposable baby
nappies, geriatric/adult diapers and sanitary pads to the respective communities. Internally we
intend to create and nurture a healthy, productive, satisfying and enjoyable environment, in
which our employees are fairly compensated and encouraged to respect the customers'
requests and the quality of the products we intend to produce. We seek fair and responsible
profit, enough to keep the company financially healthy for the short and long term, and to fairly
remunerate employees for the work and effort.
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Baby Nappies World
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal P1,000
Stationery etc. P100
Brochures P900
Consultants P0
Insurance P1,000
Rent P1,000
Research and development P0
Expensed equipment P1,000
Other P0
Total Start-up Expenses P5,000
Start-up Assets
Cash Required P37,043
Start-up Inventory P3,680
Other Current Assets P0
Long-term Assets P54,277
Total Assets P95,000
Start-up Funding
Start-up Expenses to Fund P5,000
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Baby Nappies World
Assets
Non-cash Assets from Start-up P57,957
Cash Requirements from Start-up P37,043
Additional Cash Raised P0
Cash Balance on Starting Date P37,043
Total Assets P95,000
Liabilities
Current Borrowing P0
Long-term Liabilities P0
Accounts Payable (Outstanding Bills) P0
Other Current Liabilities (interest-free) P0
Total Liabilities P0
Capital
Planned Investment
Investor 1 P100,000
Investor 2 P0
Other P0
Additional Investment Requirement P0
Total Planned Investment P100,000
Chart: Start-up
Start-up
P100,000
P90,000
P80,000
P70,000
P60,000
P50,000
P40,000
P30,000
P20,000
P10,000
P0
Expenses Assets Investment Loans
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Baby Nappies World
3.0 Products
Baby Nappies World intends to manufacture and sell disposable baby nappies, geriatric/adult
diapers and sanitary pads. These products shall be of high quality standard so as to ensure
customer satisfaction and meet all the customers' requirements.
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Baby Nappies World
2. Existing local manufacturers of diapers and sanitary pads are few with research indicating
that there are currently two in Gaborone and one in Francistown, though additional
information regarding their products and operations were still being collected during
compilation of this plan.
3. An existing textile company is also contemplating entering the baby nappies market.
An analysis of competition is provided in the competition section of this plan.
3.4 Technology
The machine responsible for the manufacturing process is a new and unique concept. It is
capable of producing different sized nappies, that is, small, medium and large geriatric/adult
and sanitary pads. It is capable of producing 350+/- diapers per hour, which converts to
2,500+/- per day, or 8,000+/- sanitary pads per day.
The one certainty in our industry is that technology will continue to evolve and develop,
changing the quantity that can be produced at any one time, as well as its quality. Our aim will
be to be aware of the implications of this new technology and utilize it in our existing
framework where possible. However our initial aim will be to pay back the initial cost of the
machine.
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Baby Nappies World
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Baby Nappies World
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Baby Nappies World
2. Y
Located in Gaborone West, Y specializes in the manufacture of baby napkins, towels, face
cloths, tea towels and dish cloths. It has a large warehouse whose logistics/operations are well
organised, coordinated and closely supervised. Prices are extremely competitive due to the
above-mentioned factors with baby napkins selling at approximately P4.00 (70x70cm); Infant
napkin approximately P3.00 (60x60cm) and a printed baby napkin selling at P6.00 (70x70cm).
It targets both retailers and consumers ensuring a large customer base.
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Baby Nappies World
3. Z
Located in Tlokweng Industrial, Z specializes in the manufacture of baby napkins, towels, face
cloths, dishcloths, swabs and other textiles.
4. K
Located in Tlokweng, K intends to go into manufacturing of baby napkins in bulk in the near
future. It currently has the capacity to do so and manufactures face cloths and dish towels, all
for the South African market. It employs 145 people and is also an investment product of B.
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Baby Nappies World
5.1.1 Strengths
Relationship selling: We intend to get to know our customers, one on one. Our direct
sales efforts will seek to maintain a relationship with our customers.
Diversified customer base: We intend to obtain orders for our products from a wide
customer base. This will ensure lack of dependency on one customer.
Low production costs: The costs of our products will be approximately a third less than
the famous brand names and end user prices.
5.1.2 Weaknesses
A limited financial base compared to our South African counterparts.
The introduction of new organisational practices and personnel who have not previously
worked together presents a challenge to the organisation.
Our infancy dictates that wholesalers and other intermediaries might be skeptical about our
products.
5.1.3 Opportunities
Service. As our intended target markets are in relatively accessible areas we intend to be
able to meet their requirements in the shortest possible time.
Current drive by government towards encouraging the participation of indigenous
entrepreneurs and diversification of the economy presents an opportunity that we may fully
utilize.
Presently there is no reliable local manufacturer of diapers and sanitary pads, with less than
a handful currently on the market.
5.1.4 Threats
The "Foreign is good, local is poor" belief may present a difficult hurdle to be overcome.
Existing competition, both local and foreign. Wholesalers and institutions may express
satisfaction with their current diapers and sanitary pads.
The possibility of other start up diaper/sanitary pad manufacturing companies generated by
healthy economic growth, establishing in the market.
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Baby Nappies World
their quality. We will initially charge PX per nappy. However this will dictate that our costs are
prudently kept so as to ensure our financial goals come to fruition.
2. Advertising. In view of the fact that we are new on the market we intend to undertake
adequate advertising of our name and products we offer. This is to instill awareness and
knowledge of our existence in the market place, which hopefully shall convert into market
share. A constant look out will be made of any special editions in the local newspapers,
which may provide an opportunity for us to advertise our products and business name.
3. Direct Marketing. This will be used to a limited extent in the form of telemarketing and
informing potential customers and obtaining referrals where possible. In the case of
telemarketing it will involve our targeting potential customers of our products and informing
them of our existence. We may then arrange for an appointment with the respective
decision-maker/order-maker, with the intention being to encourage them to order our
products.
4. Events. We intend to attend trade shows and exhibitions to increase awareness of our
products and services. These events will also enable us to interact with potential clients who
may decide to order our products. Trade shows that instantly come to mind include
Botswana International Trade Fair (BITF) and BITEC, though the latter might not be as
important as the former.
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Baby Nappies World
Page 14
5 Mo
4 Month 6
Baby Nappies World
3 Month
2 Month
1 Month
5.3.1 Sales Forecast
MonthMonth
Sales forecast information is presented in the chart and table below.
P60,000
P50,000
P30,000 Other
P20,000
P10,000
P0
Sales Forecast
Year 1 Year 2 Year 3
Sales
Nappies, diaper, pads P748,800 P1,075,200 P1,142,400
Other P0 P0 P0
Total Sales P748,800 P1,075,200 P1,142,400
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Baby Nappies World
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Baby Nappies World
Table: Personnel
Personnel Plan
Year 1 Year 2 Year 3
All departments P43,824 P76,174 P104,661
Other P0 P0 P0
Total People 7 10 12
6.4 Training
At the onset training shall be obtained from Q, the suppliers of the manufacturing equipment, in
the actual operations of the machines. Thereafter in-house training shall be undertaken. This
training will not only include product and technical aspects, but also expand to give much
greater knowledge of customers, market trends, products, new technology aids, and time
management amongst other such variables. This is to ensure that we are continuously able to
anticipate our markets needs-a proactive approach, which is so essential if we are to gain and
maintain a competitive advantage on the market.
External training will be conducted, mainly in South Africa with reputable organisations to stay
aware of the latest products and services on the market, and how to install or maintain them.
This will also ensure that our personnel are able to meet the high standards, of these
organisations.
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Baby Nappies World
2. We will encourage our employees to put forward any suggestions they might have
regarding the improvement of any of the company's functions-an open door philosophy.
Such a culture will enhance innovativeness and creativity, in turn leading to job satisfaction
and enrichment.
3. We intend to make sure that our employees understand the goals of the firm, are customer
focused, proud of their work and work as a team. This will encourage employees to become
entrepreneurial and customer responsible, in addition to unifying staff in customer focus and
values.
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Baby Nappies World
3. Respect for realistic forecasts, and conservative cash flow and financial management.
Of these only (1) and (3) are flexible.
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Baby Nappies World
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 18.08% 17.00% 18.08%
Other 0 0 0
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Baby Nappies World
Chart: Benchmarks
Benchmarks
Year 1
1.0
Year 2
Year 3
0.0
Sales Operating Expenses Inventory Turnover
Gross Margin% Collection Days
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Baby Nappies World
P6,000
P4,000
P2,000
P0
(P2,000)
(P4,000)
(P6,000)
(P8,000)
Break-even Analysis
Assumptions:
Average Percent Variable Cost 48%
Estimated Monthly Fixed Cost P8,766
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Baby Nappies World
Baby Nappies World will receive its revenue streams from sales of its diapers and sanitary pads.
However we will also look into whether we are able to generate revenue from by-products
obtained from manufacturing our main products. Additional research into the above shall be
undertaken.
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Baby Nappies World
P20,000
P18,000
P16,000
P14,000
P12,000
P10,000
P8,000
P6,000
P4,000
P2,000
P0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
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Baby Nappies World
Expenses
Payroll P43,824 P76,174 P104,661
Sales and Marketing and Other Expenses P16,200 P20,400 P20,400
Depreciation P10,800 P10,800 P10,800
Maintenance P800 P1,000 P800
Utilities P2,400 P3,000 P4,200
Installation Costs P600 P0 P0
Insurance P12,000 P12,000 P14,400
Rent P12,000 P13,200 P14,520
Payroll Taxes P6,574 P11,426 P15,699
Other P0 P0 P0
P32,000
P28,000
P24,000
P20,000
P16,000
P12,000
P8,000
P4,000
P0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
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MonthMon
5
Baby Nappies World
MonthMonthMonth
2 Month
3 4
7.7 Projected Cash Flow
1
Our cash flow is shown in the following chart and table.
Chart: Cash
Cash
P180,000
P150,000
P120,000
P30,000
P0
(P30,000)
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Baby Nappies World
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Baby Nappies World
Current Assets
Cash P196,608 P612,512 P1,082,971
Accounts Receivable P99,120 P142,326 P151,222
Inventory P35,728 P38,476 P35,728
Other Current Assets P0 P0 P0
Total Current Assets P331,456 P793,314 P1,269,921
Long-term Assets
Long-term Assets P54,277 P54,277 P54,277
Accumulated Depreciation P10,800 P21,600 P32,400
Total Long-term Assets P43,477 P32,677 P21,877
Total Assets P374,933 P825,991 P1,291,798
Current Liabilities
Accounts Payable P39,803 P44,786 P45,994
Current Borrowing P0 P0 P0
Other Current Liabilities P0 P0 P0
Subtotal Current Liabilities P39,803 P44,786 P45,994
Long-term Liabilities P0 P0 P0
Total Liabilities P39,803 P44,786 P45,994
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Baby Nappies World
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 43.59% 6.25% 0.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 51.67% 63.75% 65.88% 33.60%
Selling, General & Administrative Expenses 20.44% 22.26% 24.68% 21.20%
Advertising Expenses 0.96% 0.89% 0.84% 0.40%
Profit Before Interest and Taxes 37.62% 49.99% 49.65% 2.90%
Main Ratios
Current 8.33 17.71 27.61 1.77
Quick 7.43 16.85 26.83 1.24
Total Debt to Total Assets 10.62% 5.42% 3.56% 53.80%
Pre-tax Return on Net Worth 84.05% 68.80% 45.53% 6.20%
Pre-tax Return on Assets 75.13% 65.07% 43.90% 13.50%
Activity Ratios
Accounts Receivable Turnover 5.67 5.67 5.67 n.a
Collection Days 57 55 63 n.a
Inventory Turnover 10.91 10.51 10.51 n.a
Accounts Payable Turnover 12.44 12.17 12.17 n.a
Payment Days 27 28 30 n.a
Total Asset Turnover 2.00 1.30 0.88 n.a
Debt Ratios
Debt to Net Worth 0.12 0.06 0.04 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital P291,653 P748,528 P1,223,927 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.50 0.77 1.13 n.a
Current Debt/Total Assets 11% 5% 4% n.a
Acid Test 4.94 13.68 23.55 n.a
Sales/Net Worth 2.23 1.38 0.92 n.a
Dividend Payout 0.00 0.00 0.00 n.a
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Baby Nappies World
8.0 Controls
The diapers and sanitary pads market has not been fully explored. With this in mind we intend
to aggressively market our existence. The introduction of quality sales and marketing literature
will enable the company to effectively market to potential customers with a positive image and
impression. This will be supported by the relationships we would have established with several
of our customers and clients.
Throughout the year the intention will be to undertake regular evaluations of our products and
marketing programs so as to ensure that we are in line with our intended objectives. In
summary we intend to undertake the following:
1. Tracking and follow-up: We intend to have the discipline, as an organisation, to track results
of the business plan and make sure that we implement.
2. Market segment focus: We intend to have the discipline to maintain the market segment
focus.
3. Saying no: Though difficult initially we intend to be able to say no to special deals that take
us away from the target focus but in particular those that are unprofitable.
2. Another possibility is the introduction of a new company(s) in our niche. Hence the need to
undertake aggressive marketing and networking.
8.2 Implementation
Baby Nappies World will start by obtaining trial orders from several wholesalers and institutions
with the objective being to impress them regarding our products' quality. This will see us
obtaining long-term contracts that will ensure we grow in the right direction. We will prepare
our sales literature, including business cards mainly through engaging a reputable printing
organisation. In undertaking the above we intend to ensure that the goals of the organisation
are achieved as well as delegation of responsibility for maximum effectiveness.
Page 30
Appendix
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Nappies, diaper, pads 0% P57,600 P57,600 P57,600 P57,600 P57,600 P57,600 P67,200 P67,200 P67,200 P67,200 P67,200 P67,200
Other 0% P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Total Sales P57,600 P57,600 P57,600 P57,600 P57,600 P57,600 P67,200 P67,200 P67,200 P67,200 P67,200 P67,200
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Nappies, diaper, pads P27,840 P27,840 P27,840 P27,840 P27,840 P27,840 P32,480 P32,480 P32,480 P32,480 P32,480 P32,480
Other P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Subtotal Direct Cost of Sales P27,840 P27,840 P27,840 P27,840 P27,840 P27,840 P32,480 P32,480 P32,480 P32,480 P32,480 P32,480
Page 1
Appendix
Table: Personnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
All departments 0% P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652
Other 0% P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Total People 7 7 7 7 7 7 7 7 7 7 7 7
Total Payroll P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652
Page 2
Appendix
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 17.00% 17.00% 17.00% 17.00% 17.00% 17.00% 17.00% 17.00% 17.00% 17.00% 17.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 3
Appendix
Gross Margin P29,760 P29,760 P29,760 P29,760 P29,760 P29,760 P34,720 P34,720 P34,720 P34,720 P34,720 P34,720
Gross Margin % 51.67% 51.67% 51.67% 51.67% 51.67% 51.67% 51.67% 51.67% 51.67% 51.67% 51.67% 51.67%
Expenses
Payroll P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652 P3,652
Sales and Marketing and Other P1,350 P1,350 P1,350 P1,350 P1,350 P1,350 P1,350 P1,350 P1,350 P1,350 P1,350 P1,350
Expenses
Depreciation P900 P900 P900 P900 P900 P900 P900 P900 P900 P900 P900 P900
Maintenance P0 P0 P200 P0 P0 P200 P0 P0 P200 P0 P0 P200
Utilities P200 P200 P200 P200 P200 P200 P200 P200 P200 P200 P200 P200
Installation Costs P600 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Insurance P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000
Rent P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000 P1,000
Payroll Taxes 15% P548 P548 P548 P548 P548 P548 P548 P548 P548 P548 P548 P548
Other P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Total Operating Expenses P9,250 P8,650 P8,850 P8,650 P8,650 P8,850 P8,650 P8,650 P8,850 P8,650 P8,650 P8,850
Profit Before Interest and Taxes P20,510 P21,110 P20,910 P21,110 P21,110 P20,910 P26,070 P26,070 P25,870 P26,070 P26,070 P25,870
EBITDA P21,410 P22,010 P21,810 P22,010 P22,010 P21,810 P26,970 P26,970 P26,770 P26,970 P26,970 P26,770
Interest Expense P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Taxes Incurred P6,153 P3,589 P3,555 P3,589 P3,589 P3,555 P4,432 P4,432 P4,398 P4,432 P4,432 P4,398
Net Profit P14,357 P17,521 P17,355 P17,521 P17,521 P17,355 P21,638 P21,638 P21,472 P21,638 P21,638 P21,472
Net Profit/Sales 24.93% 30.42% 30.13% 30.42% 30.42% 30.13% 32.20% 32.20% 31.95% 32.20% 32.20% 31.95%
Page 4
Appendix
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Net Cash Flow P8,560 (P43,443) P18,416 P18,261 P18,421 P18,416 P20,308 P10,644 P22,533 P22,378 P22,538 P22,533
Page 5
Appendix
Cash Balance P45,603 P2,160 P20,576 P38,837 P57,258 P75,674 P95,982 P106,627 P129,159 P151,537 P174,076 P196,608
Current Assets
Cash P37,043 P45,603 P2,160 P20,576 P38,837 P57,258 P75,674 P95,982 P106,627 P129,159 P151,537 P174,076 P196,608
Accounts Receivable P0 P43,200 P84,960 P84,960 P84,960 P84,960 P84,960 P92,160 P99,120 P99,120 P99,120 P99,120 P99,120
Inventory P3,680 P30,624 P30,624 P30,624 P30,624 P30,624 P30,624 P35,728 P35,728 P35,728 P35,728 P35,728 P35,728
Other Current Assets P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Total Current Assets P40,723 P119,427 P117,744 P136,160 P154,421 P172,842 P191,258 P223,870 P241,475 P264,007 P286,385 P308,924 P331,456
Long-term Assets
Long-term Assets P54,277 P54,277 P54,277 P54,277 P54,277 P54,277 P54,277 P54,277 P54,277 P54,277 P54,277 P54,277 P54,277
Accumulated Depreciation P0 P900 P1,800 P2,700 P3,600 P4,500 P5,400 P6,300 P7,200 P8,100 P9,000 P9,900 P10,800
Total Long-term Assets P54,277 P53,377 P52,477 P51,577 P50,677 P49,777 P48,877 P47,977 P47,077 P46,177 P45,277 P44,377 P43,477
Total Assets P95,000 P172,804 P170,221 P187,737 P205,098 P222,619 P240,135 P271,847 P288,552 P310,184 P331,662 P353,301 P374,933
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable P0 P63,447 P34,342 P34,503 P34,342 P34,342 P34,503 P44,577 P39,643 P39,803 P39,643 P39,643 P39,803
Current Borrowing P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Other Current Liabilities P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Subtotal Current Liabilities P0 P63,447 P34,342 P34,503 P34,342 P34,342 P34,503 P44,577 P39,643 P39,803 P39,643 P39,643 P39,803
Long-term Liabilities P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0 P0
Total Liabilities P0 P63,447 P34,342 P34,503 P34,342 P34,342 P34,503 P44,577 P39,643 P39,803 P39,643 P39,643 P39,803
Paid-in Capital P100,000 P100,000 P109,000 P109,000 P109,000 P109,000 P109,000 P109,000 P109,000 P109,000 P109,000 P109,000 P109,000
Retained Earnings (P5,000) (P5,000) (P5,000) (P5,000) (P5,000) (P5,000) (P5,000) (P5,000) (P5,000) (P5,000) (P5,000) (P5,000) (P5,000)
Earnings P0 P14,357 P31,879 P49,234 P66,756 P84,277 P101,632 P123,271 P144,909 P166,381 P188,020 P209,658 P231,130
Total Capital P95,000 P109,357 P135,879 P153,234 P170,756 P188,277 P205,632 P227,271 P248,909 P270,381 P292,020 P313,658 P335,130
Total Liabilities and Capital P95,000 P172,804 P170,221 P187,737 P205,098 P222,619 P240,135 P271,847 P288,552 P310,184 P331,662 P353,301 P374,933
Net Worth P95,000 P109,357 P135,879 P153,234 P170,756 P188,277 P205,632 P227,271 P248,909 P270,381 P292,020 P313,658 P335,130
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Appendix
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