9.

FINANCIAL PLAN

The financial plan acts as a point where all financial information in the administrative, marketing and operations plans are collected and summarized to give a picture of the how much the business will cost to run. The information in the financial plan is essential in analyzing the viability of the project and will have an impact on whether the business venture will continued as planned, be adapted or abandoned. When the business is carried out as planned, the financial information can be used to control the business expenses. 9.1 Project implementation cost schedule

The project implementation cost will show how mush investment in term of fixed assets cost, monthly expenses and other cost are needed to start the business. Table 9. ! "roject implementation cost schedule
A. Capital expenditure %and & building 'contributed by owner( $achinery and e,uipment /urniture and fixtures 1ehicle 2 1an 'hire purchase( #enovation cost Sub !otal ". #or$in% capital &' months( $arketing "roduction34peration 5dministrative C. )ther expenditure Pre-operating 6usiness registration 7nsurance #oad tax 8undries Deposits 9tilities 'Tel3water3electricity( Sub !otal *rand !otal +. Add, Contin%enc- cost &10.( !)!AL P/)01C! I2PL121N!A!I)N C)S! 1345600 &sama den%an total source o7 #$ )*,+++ -.,+++ 0,+++ -*,+++ #$ #$

7und(

9.'

Sources o7 7unds schedule

8ources of funds will indicate availability of funds to finance the project implementation cost. Table 9.-! 8ources of finance schedule
A. 18uit- contribution :ash 5ssets 'land & building( Sub !otal ". 1xternal sources ;ire purchase '1an( Term loan Sub !otal C. )thers !)!AL S)9/C1S )F FINANC1 #$ #$

1345600 &sama den%an total implementation cost(

9..

/ixed assets depreciation tables 'optional(

Table 9..! 5 depreciation schedule for a van

!-pe o7 asset, )ri%inal cost, 1conomic li7e, Scrap :alue, 2ethod! ;ear + . ) * Annual depreciation &/2( + *,+++ *,+++ *,+++ *,+++ *,+++ 1an #$-*,+++ * years #$+ 8traight line Accumulated depreciation &/2( + *,+++ +,+++ *,+++ -+,+++ -*,+++ "oo$ :alue &/2( -*,+++ -+,+++ *,+++ +,+++ *,+++ +

9.)

%oan amortization schedule 'optional(

7nformation on term loan

Term loan Loan amount, Loan period, Interest rate, 2ethod, #$)*,+++ * years +< 5nnual rest ;ire purchase Loan amount, Loan period, Interest rate, 2ethod, #$-+,+++ * years =< /lat rate

Term loan Annual pa-ment o7 principal /2<65000=6 -ears > /295000 Interest pa-ment, ;ear 1, /2<65000 /2<5600 ;ear ', /23@5000 /235@00 ;ear 3, /2'45000 /2'5400 ;ear <, /21?5000 /215?00 ;ear 6, /295000 x 10. > x 10. > x 10. > x 10. > x 10. > /2900

;ire purchase Annual pa-ment o7 principal /2<65000=6 -ears > /295000 Interest pa-ment, ;ear 1, /2'05000 x ?. > /215@00 ;ear ', /2'05000 x ?. > /215@00 ;ear 3, /2'05000 x ?. > /215@00 ;ear <, /2'05000 x ?. > /215@00 ;ear 6, /2'05000 x ?. > /215@00

!able 9.3, !erm loan amortiAation schedule

Loan amount, #$)*,+++ Loan period, * years ;ear Interest &/2( + + ),*++ ' +< x )*+++( . ) * .,?++ ' +< x .?+++( -,0++ ,=++ 9++ Interest rate, +< 2ethod, 5nnual rest Principal Pa-ment &/2( &/2( + + 9,+++ 'interest .,*++ .*++ 2 9+++ > -*.++ )*++( monthly 9,+++ -,?++ 9,+++ 9,+++ 9,+++ ,0++ +,=++ 9,9++

"alance &/2( )*,+++ .?,+++ ')*+++ 2 9+++( -0,+++ =,+++ 9,+++ +

9.*

;ire purchase repayment schedule 'optional( 2 can be combined with 9.*

!able 9.<, Bire purchase loan amortiAation schedule

!-pe o7 asset, 1an Cost o7 asset, #$-*,+++ +oCn pa-ment, #$*,+++ ;ear Interest &/2( + + ,?++ '=< x -++++( ,?++ . ,?++ ) ,?++ * ,?++ Loan amount, #$-+,+++ Interest rate, =< 2ethod, /lat rest Principal Pa-ment &/2( &/2( + + ),+++ *,?++ ),+++ ),+++ ),+++ ),+++ *,?++ *,?++ *,?++ *,?++

"alance &/2( -+,+++ ?,+++ '-++++ 2 )+++( -,+++ =,+++ ),+++ +

9.?

"ro forma cash flow statement

"roforma cash flow will indicate the business cash situation of the company. !able 9.6, A pro 7orma cash 7loC statement &2onthl-(
$onth A Cash 7loC E,uity 2 cash Term loan :ash sales "re@ operat ion Aan /eb $ac 5pr $ay Aun Aul 5ug 8ept 4ct Bov Cec Dear

"

!otal cash 7loC

-++++ sales forecas t@ marketi ng plan -++++

'<0000 &'0000 x 1'(

31'600 &'4600 D <6000 D '<0000 (

Cash out7loC )peration al expendit ure E operation al plan #aw materials .+++ 3@000 &3000 x

Cirect labor 4perationa l overheads 2ar$etin % expendit ure E mar$etin % plan 8ales commissio n Entertainm ent allowance Administr ati:e expendit ure E adminitra ti:e plan 8alaries & wages E"/ & 84:84 4ther administra tive overheads %oan repayment ! 'refer loan schedule( "rincipal

.+++ -+++

1'( 3@000 &3000 x 1'( '<000 &'000 x 1'(

+++ *++

1'000 &1000 x 1'( @000 &600 x1'(

*+++ +++ -+++

@0000 1'000 '<000

0*+

9000

7nterest ;ire purchase repayment Cown payment "rincipal 'refer hire purchase schedule( 7nterest 'refer hire purchase schedule( Capital expendit ure E operation al F administr ati:e plans $achinery & e,uipment /urniture & fixtures #enovatio n "re@ operationa l expenditur e Ceposits + !otal cash out7loCs 1 Cash

.0*

<600

*+++ ...

6000 <000

..

1@00

-.+++ 0+++ )+++ -0++

'3000 4000 <000 '400

=++ <'60 0 3000

9+9 9+9

?00 '41@00 909

surplus &+e7icit( " + F "e%innin % cash balance

0 '0-*+ +2 )-*++ ( +

'-++++ 2 9+9 ( 30000 'pre@ operati on( .+9+9 '.++++ F 9+9(

&+icem ber amount ( 0

* 1ndin% cash balance

.++++

<0900 &+ec amount (

!able 9.@, A pro 7orma cash 7loC statement &Annuall-(

Dear A Cash 7loC E,uity 2 cash Term loan :ash sales !otal cash 7loC &D all A acti:ities(

Dear 'Cerive from monthly transaction( -0*++ )*+++ -)++++ 'from monthly schedule( 31'600 '-0*++ F)*+++ F -)++++(

Dear + + -0?+++ 'Estimation(

Dear . + + . 0)++ 'Estimation(

"

Cash out7loC )perational expenditure #aw materials Cirect labor 4perational overheads 2ar$etin% expenditure 8ales commission Entertainment allowance Administrati:e expenditure 8alaries & wages E"/ & 84:84 4ther administrative overheads %oan repayment! "rincipal 7nterest ;ire purchase repayment Cown payment "rincipal 7nterest Capital expenditure

+ 1 F *

$achinery & e,uipment /urniture & fixtures #enovation "re@operational expenditure Ceposits !otal cash out7loCs &D all C expenditures( Cash surplus &+e7icit( E &" E C( "e%innin% cash balance 1ndin% cash balance

'41@00 <0900 '. -*++ 2 -0 ?++( + <0900 'from E(

-.99++ 3@100 <0900 &7rom -ear 1( 00+++ '.? ++ F )+9++(

-)90 + @4@90 00+++ &7rom -ear '( ))?9+

9.0

"ro forma profit and loss statement3 7ncome statement 'optional(

"ro forma profit and loss statement will show the business profit3loss estimation at the end of the accounting period. ;ou must %et cost o7 %oods manu7actured and %ross pro7it G :alculation of cost o7 %oods manu7actured #$ #aw material used 4pening stock ' 3 ( 2 jika masih ada 5dd! "urchase of raw materials #aw material available %ess! :losing stock '. 3 -( 2 guna untuk finished products Cirect materials Cirect labor "rime cost $anufacturing overheadsG 'operational 4; F Cepreciation charges( Work@in@process 5dd! Work@in@process ' 3 ( %ess! Work@in@process '. 3 -( + .?+++ 'from cash flow schedule( .?+++ .+++ 33000 '.?+++ 2 .+++( 3@000 'from cash flow schedule 2 annually( @9000 '..+++ F .?+++( -=?++ '-)+++ F HHH @ dummy + + #$

:ost of goods manufactured 'To be transferred to the trading account(

+ 90?++ '?9+++ F -=?++(

G The amount of manufacturing overheads is not the same as the amount of the operations overhead '#$-)+++( in the cash flow statement because depreciation charges for the plant, machinery and e,uipment have been added on to the operational overheads. The depreciation charge does not appear in the cash flow because it is a non@cash expenditure.

Table 9.?! :alculation of %ross pro7it for a manufacturing company #$ SAL1S :48T 4/ I44C8 84%C 4pening stock for finish goods ' 3 ( 5dd! :ost of goods manufactured Ioods available for sale %ess! :losing stock for finished goods '. 3 -( 2 telah prosesJ eg :C dah sedia siap */)SS P/)FI! + 90?++ 'data cost( 90?++ .+++ 9<@00 &94@00 E 3000( 1<6<00 &'<0000 E 9<@00( #$ '<0000 &;ear 1 data(

Table 9.?! :alculation of gross profit for a trading company #$ SAL1S :48T 4/ I44C8 84%C 4pening stock for finish goods ' 3 ( 5dd! "urchased of finished goods Ioods available for sale %ess! :losing stock for finished goods '. 3 -( + .?+++ .?+++ .+++ #$ '<0000

*/)SS P/)FI!

33000 '04000

!able 9.4, A pro 7orma income statement 7or a manu7acturin% compan#$ SAL1S :48T 4/ I44C8 84%C 4pening stock for finish goods ' 3 ( 5dd! :ost of goods manufactured Ioods available for sale Less, :losing stock for finished goods '. 3 -( */)SS P/)FI! %E88! 4"E#5T7BI EK"EB8E8 5dministrative expenses $arketing 7nterest! Term loan ;ire purchase Cepreciation charges $iscellaneous Total operating expenses BET "#4/7T 6E/4#E T5K + 90?++ 90?++ .+++ 9<@00 1<6<00 9?+++ =+++ )*++ ?++ 0-++ -0++ 130000 16<00 &1<6<00 130000( #$ '<0000 &cash 7loC schedule(

Table 9.?! 5 pro forma income statement for a trading company #$ SAL1S :48T 4/ I44C8 84%C 4pening stock for finish goods ' 3 ( 5dd! "urchased of finished goods Ioods available for sale %ess! :losing stock for finished goods '. 3 -( */)SS P/)FI! %E88! 4"E#5T7BI EK"EB8E8 5dministrative expenses $arketing 4perations3productions 7nterest! Term loan ;ire purchase Cepreciation charges $iscellaneous Total operating expenses BET "#4/7T 6E/4#E T5K + .?+++ .?+++ .+++ 33000 '04000 9?+++ =+++ ?++++ )*++ ?++ =++ -0++ 19<@00 1'<00 #$ '<0000

9.=

"ro forma balance sheet &optional(

"roforma balance sheet will highlight the overall financial standing of the business at the end of the accounting period. Table 9.7: A pro forma balance sheet for a manufacturing company #$ FIH1+ ASS1!S %and & 6uilding $achinery & e,uipment /urniture and fixtures #enovation 1an C9//1N! ASS1!S :ash :losing stock for raw materials :losing stock for finished goods )!B1/ ASS1!S Ceposits !)!AL ASS1!S 1I9I!; :apital 5ccumulated profit C9//1N! LIA"ILI!I1S 0-*++ *)++ =09++ + )*+++ =)++ *?++ .-++ -++++ 9--++ )+9++ .+++ .+++ #$

)?9++ =++ 139900

L)N* !1/2 LIA"ILI!I1S Term loan ;ire purchase !)!AL 1I9I!; AN+ LIA"ILI!I1S

.?+++ ?+++

*-+++ 139900

Table 9.0! 5 pro forma balance sheet for a trading company #$ FIH1+ ASS1!S %and & 6uilding $achinery & e,uipment /urniture and fixtures #enovation 1an C9//1N! ASS1!S :ash :losing stock for finished goods )!B1/ ASS1!S Ceposits !)!AL ASS1!S 1I9I!; :apital 5ccumulated profit C9//1N! LIA"ILI!I1S L)N* !1/2 LIA"ILI!I1S Term loan ;ire purchase .?+++ ?+++ 0-*++ -)++ )*+++ =)++ *?++ .-++ -++++ )+9++ .+++ ).9++ =++ 13@900 #$

9--++

=)9++ +

*--++

!)!AL 1I9I!; AN+ LIA"ILI!I1S

13@900