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ABSTRACT..................................................................................................... 2 PURPOSE OF THE ASSIGNMENT......................................................................2 BACKGROUND............................................................................................... 2 TASK-1 THE ANALYSIS OF FINANCIAL DATA IN CONNECTION WITH HEALTH AND SOCIAL CARE SCENARIOS...............................................................................3 1.1AN EXAMINATION OF KEY SOURCES OF FINANCE AND EXPENDITURE BASED ON THE PROJECTED STATEMENTS AND MANAGEMENT ACCOUNTS....................3 1.2AN ANALYSIS OF FINANCIAL DATA IN AN ORGANIZATIONAL CONTEXT..........3 1.3SOURCES AND ALLOCATION OF FUNDING WITHIN SOCIAL AND HEALTHCARE SERVICE........................................................................................................ 4 1.4AN ANALYSIS OF BUDGET FORECAST AND REVIEW......................................4 L02 THE PREPARATION OF INFORMED FINANCIAL JUDGMENTS BASED ON ACCOUNTING ANALYSIS.................................................................................5 2.1 THE APPROPRIATE ACCOUNTING ANALYSIS TECHNIQUES ON PREDICTED FINANCIAL STATEMENTS................................................................................5 2.2 SYSTEMATIC ANALYSIS OF DATA AND EXECUTION OF RATIONAL FINANCIAL DECISION MAKING.........................................................................................6 2.3 A REVIEW OF BUDGET FORECASTS FROM THE FINANCIAL DATA..................6 2.4 SYSTEMATIC ANALYSIS OF BUDGET FORECASTS AND ORGANIZATIONAL PERFORMANCE ............................................................................................. 7 2.5 ANALYSIS OF FINANCIAL DATA FROM DIFFERENT INVESTMENT OPTIONS FOR OPTIMUM RETURN..................................................................................7 2.6 CRITICALLY EVALUATION OF VARIOUS METHODS OF CAPITAL INVESTMENT APPRAISAL.................................................................................................... 8 L03 THE METHOD OF PREPARING EXPENDITURE FOR A PROPOSAL IN HEALTH CARE ............................................................................................................ 8 3.1 JUSTIFICATION FOR THE SIGNIFICANCE OF PROPOSAL IN CONNECTION WITH ORGANIZATIONAL STRATEGY.........................................................................9 3.2 THE LIMITATIONS OF ALTERNATE MODELS FOR EVALUATING EXPENDITURE 9 3.3 THE KEY ISSUES IN MANAGEMENT OF CHANGE........................................10 3.4 THE HEALTH AND PROJECT PLAN FOR THE PROPOSED HEALTH & SOCIAL CARE HOME.................................................................................................10 3.4.1 EXPENDITURE AND BENEFITS...............................................................11 3.4.2 3.4.3 3.4.4 3.4.5 MILESTONES........................................................................................................... 11 BUDGETS............................................................................................................... 11 RESPONSIBILITIES AND MILESTONE...............................................................................11 MANAGEMENT MONITORING AND CONTROL ..................................................................11
CONCLUSION...............................................................................................11 THE EXISTING DEMANDS AND DERIVING OPPORTUNITIES IN HEALTH AND SOCIAL CARE SECTOR DYNAMICALLY ENFORCING TO BEGIN NEW BUSINESS ENTITIES IN THIS SECTOR. THE FUTURE OPPORTUNITIES IN THIS SECTOR OBVIOUSLY PROVIDE BUSINESS ENTITIES A BRIGHT FUTURE, IF THE ENTITIES CAN PROVIDE HIGH QUALITY SERVICE ACCORDING TO THE INDUSTRY STANDARD. THE COMPETING POWER SHOULD BE OBTAINED BY VALUES, QUALITY SERVICE AND STRATEGIC APPROACH TO THE ECONOMY,
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ENVIRONMENT AND INDUSTRY. THE GLOBALIZATION AND LIBERALIZATION ALLOWS EXPANDING AND EXCEEDS THE GEOGRAPHICAL BOUNDARIES...........11 REFERENCES ..............................................................................................12 APPENDIXES................................................................................................13
Abstract
This assignment deals with development of a health and social care project plan consists of expenditures, benefits and mile stones, besides that, it allocate the responsibilities, time scales, management, monitoring and control of the project. In addition, it deals with the sources of funds and analyzing the predicted financial reports and investigating the limitations of alternative models used to evaluate the expenditure. Furthermore, applying the appropriate financial analysis, techniques and analyze data to financial decision making. Finally, it deals the systematic analysis of financial data for investment options using various investment appraisal techniques and justifying the importance between investment proposal and organizational strategy and examining the key issues of management of change.
Background
This financial analysis report prepared for the project proposal of a new care home supposed to open in London by a group of investors with 40 to 50 beds with 60,000 own capital and rest with a bank loan or a government grant, besides that the alternate project provide a 25% return on investment, on such a circumstances, the investment appraisal helps investors on investment decision. The proposed care home not only provides either short or long term care such as accommodation, meals, personal care including help with bathing and eating but also provides nursing care by registered nurse. Residential care: - The proposed care home with 50 beds providing care for older people Community Services: - Care workers visit and provide live in support for people in their own homes and facilitating daily living needs and promoting independence.
Introduction
The social and health care service providers in U.K focusing on elderly people to provide nursing and residential care for a long period. In U.K, the health care sector, the service providers are national corporate, regional private companies and single
3 home operators. The increased life expectancy in last decades resulted the fast grow of health and home care business in advanced countries. The health and home care business is promising one and the requirement of certified professionals and their service demanded by this promising sector with unlimited potential. The social and health care business can focused to an area with growing senior population. The census profile provides the data of large cities with large retirement communities to target above 65 of elderly population. The local government will be provided the licensing and certification requirements t legally operate a health and social care home. The nursing certified part time and contracted health care workers can be hired for operations and it helps to maintain costs. The required criminal check should be conducted for the medical staff and if required private medical insurance can meet the individual requirements.
TASK-1 The Analysis of Financial Data in connection with health and social care scenarios
The preparation of financial projection required the standard industry average data, refers to (Research and Forecasting U.K, 2013), the standard rate of revanue and cost are shown in Appendix 1. The sources of fund availability depends not only on the nature of organizations, but also it depends, is it a new venture or running. There are internal and external sources of funds, therefore it matter to the new vwnture and running venture, besides that, there are own capital, ownership capital and non ownership capital. (Appendix-9)
1.1 An examination of key sources of finance and expenditure based on the projected statements and management accounts
The proposed health and home care venture required 500,000 for investing in the project and the owners contribution is 60,000 and arranged a bank loan @12% per annum of 440,000, and used for start up expenses, such as leasing premises, lease hold improvements, capital equipments of furniture, fixtures and miscellaneous equipments. In addition, used it for location and administration expenses, such as utility deposits, legal and accounting fees, prepaid insurance, pre-opening salaries. Furthermore, purchase of pre-opening inventories of medicine and miscellaneous equipments, advertising, signage, printing and stationery, travel and entertainment, out sourcing contract agreements such as food delivery, cleaning premises and laundry and inaugural expenses. Above those kept reserve for contingencies and working capital. (Appendix-3)
4 1. identify trends in reports to decide the financial status 2. to analyze past, present and future financial status and performance by ratio analysis 3. reveals the significance of financial statement notes and management decision notes 4. can identify the process within the financial frame work 5. implementation of past performance and future risk 6. allows to make informed decisions The projected financial statements and supporting reports shows that;1. Appendix -1 Industry standard for revenue, expenses and occupancy rate 2. Appendix-2 twelve months ending projected summarized income statement showing the percentage of cost, expenses and adjusted EBITADA 3. Appendix-3 Sources of capital and uses of capital 4. Appendix-4 Industry average standard revenue, cost and margin of calculation 5. Appendix-5, 6 and 7 quarterly income statement 6. Appendix 8 project charter 7. Appendix- 9 sources of working capital 8. Appendix-10 Balance sheet showing total assets liabilities and capital 9. Appendix 11 Income statement for 12 months ending with percentages consumed by each item 10. Appendix-12 Cash flow statements 11. Appendix 13 - Statement of changes in financial position 12. Appendix- 14 key balances and balance of operations 13. Appendix 15 operational analysis, resource management, profitability and working capital 14. Appendix 16 retained earnings 15. Appendix 17 funding sources, contribution mechanism and collection
1.3 Sources and allocation of funding within social and healthcare service
The health care triangle consists of citizen, provider and third party insurer and or purchaser. It is an exchange of resources such as the provider exchange health care resources to users and transfer financial resources to the providers and made direct payment and a third party offers protection to a community against the financial risk. The third party may be a private or public body; therefore the funding, allocation and delivery may happen among the citizen, third party insurer or purchaser and provider. The funding system works through on sources, mechanism and collection agent. Appendix - 17 (WHO, 2002)
5 return on net worth 63.99%, besides that the resources management shows a current ratio of 4.83 (1:4.83). The working capital shows that, the inventory turnover is 544.80 times. (Appendix -14 and 15). The financial report shows a fair status of finance and the ratio analysis meets the industry standard and financial routine and movements process within the financial circle shows a reasonable performance and there is no future risk predicted based on the present performance prediction and it reported investors to fulfill the obligation of informed decision.
2.2 Systematic Analysis of data and execution of rational financial decision making
Refers to (Business Dictionary, 2013) rational financial decision making is, Systematic, step by step method in which 'hard' (quantitative) data obtained through observation or mathematical (statistical) analysis or modelling is used for making long-term decisions. The financial statements presented not only in a prescribed formats, but also in quantitative figures and it obtained from the historic data or it projected from the industry standard and assumptions. The financial statements interpretation allows decision makers to recognize the financial status, growth, performance, besides that it locate the future risks. The decision making process brings together the right resources to right market in correct time. The right business decisions maximise the returns and helps to exist in the market as leader and put strategies in right place. The systematic approach of decision making process deals with recognition of the problems, information and intelligence, alternatives, choice, implementation and feedback. Therefore analysing the financial statements, such as income statement, balance sheet and capital employed and also using performance indicators and it will contribute decision making process.
7 the government , 75% of total rent for a fiscal year added as other income 75000 shows a total of 4,029,964.25. The cost of sales shows 54.07% and a gross profit 45.93%. Out of that 23.88% is the administrative overhead. (Appendix 11 & 15) The balance sheet shows retained earnings of 888,417 and total asset 313,889.21 with a current ratio of 4.83. The total liabilities and capital shows 1, 702, and 306.83. (Appendix 10) The cash flow statement shows 888,417.62 as net income and 1,149,506.83 net cash provided by operations. (Appendix 12) The statement of changes in financial position shows a total source of 1, 431, 617.62 and out of that total uses 230,000 with a net change balance of 1, 201,617.62(Appendix 13) The predicted financial statements shows a bright future and enhancement in operations may lead the firm in higher positions in market leadership.
2.5 Analysis of financial data from different investment options for optimum return
The investment project decision depends and consider the factors such as, availability of fund, source and cost of fund, life time of the project, cash flow, payback period, capital allowances government taxes and grants, residual value of the asset and sensitivity analysis, such as sales volume, price, operating cost and capital expenditure. The proposed firm has an another investment project with a 25% return on capital, but if proceed with the proposed project of health and social care project the return isInitial investment = 500000 Annual net cash flow = 888147.62 Therefore Annual IRR = 77.68% Gross return = 77.68%
8 The discount rate of 12% and a period of one year, the projected cash flow are worth of 793,234.22 today. It is greater than the initial investment of 500000. The positive NPV of the project is 293,234.22. Therefore to pursuing the project be optimal.
9 and outflow for the capital investment, operating expenses, interest and future repair and overhauls.
3.1 Justification for the significance of proposal in connection with organizational strategy
Refers to business dictionary, organizational strategy is, An expression of how an organization needs to evolve over time to meet its objectives along with a detailed assessment of what needs to be done. Developing an organizational strategy for a business involves first comparing its present state to its targeted state to define differences, and then stating what is required for the desired changes to take place. (Business Dictionary, 2013) The proposed health and social care needs to establish the plan according to the designed predicted plan to meet the mission and vision. The project is in starting stage and has to implement to achieve the targeted results. Therefore the implementation should be made correctly as per the structured project charter. The projects predicted financial statement shows a pleasant future such as:The income statement (Appendix-11) shows an operating profit of 1180556.83 at a 29.85% of revenue and after adjusting the EBITADA it shows a net income of 888,417.62 at a 22.05% of revenue. The 75% of rental reimbursement treated as other income. The operational analysis shows a cost of sales 54.07%, gross profit at 45.93% and net profit 22.05%. The profitability ratio shows return on total assets 52.19% and return on net worth 63.99%, besides that the resources management shows a current ratio of 4.83 (1:4.83). The working capital shows that, the inventory turnover is 544.80 times. (Appendix -14 and 15).
Table-1
10
The ARR used the accrual accounts amounts and time period covered an average of all years. Pay Back Period method considered cash flows without discounted rate and time period used until the cash collected. NPV used the discounted cash flow for entire life of the project and finally IRR used discounted cash flow and total life of the project.
3.4 The health and project plan for the proposed Health & social care Home Sources of Capital and Start up expenses
The proposed health and social care home planned to invest by the group of investors 60000 as own capital and decided to borrow from bank 440,000. Therefore total capital invested for leasing real estate, lease hold improvements, location and administration expenses, opening inventory, advertising, contingency and working capital. (Appendix-3)
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3.4.2 Milestones
The project aimed to utilise the opportunities in health and social care and study the viability of the investment project and implement the project within the scheduled time correctly to attain the scope of the project to attain the expected benefits by satisfying the milestones by project team (Appendix-8)
3.4.3 Budgets
The budgets prepared as per the industry standards (Appendic-1) (Appendic-4) and the 12 months prediction (Appendix 5 to 7), as per the following assumption. A. The starting month (May) only meet the target of 50% and afterwards there is an increment of 10% revenue in every month and the last quarter final two months it will be 150%. B. The increase of based on the number of clients in outside and the maximum utilisation of resources within the organization. ( Appendix- 5 to 7)
CONCLUSION
The existing demands and deriving opportunities in health and social care sector dynamically enforcing to begin new business entities in this sector. The future opportunities in this sector obviously provide business entities a bright future, if the entities can provide high quality service according to the industry standard. The competing power should be obtained by values, quality service and strategic approach to the economy, environment and industry. The globalization and liberalization allows expanding and exceeds the geographical boundaries.
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REFERENCES
Accounting for Management. (2013, March). Budget. Retrieved March 19, 2013, from accounting4management.com: http://accounting4management.com/sales_budget.htm Boundless. (2013, March). Consumers' Income, Purchasing Power, and Confidence . Retrieved March 19, 2013, from boundless.com: https://www.boundless.com/marketing/marketing-environment/external-factors/consumersincome-purchasing-power-and-confidence/ Business Dictionary. (2013, March 08). External Enviornment. Retrieved March 08, 2013, from businessdictionary.com: http://www.businessdictionary.com/definition/externalenvironment.html Business Dictionary. (2013, February 26). investment appraisal. Retrieved February 26, 2013, from businessdictionary.com: http://www.businessdictionary.com/definition/investment-appraisal.html Business Finance Online. (2002-2013). Internal Rate of Return. Retrieved February 25, 2013, from enwealth.com/BusinessFinanceOnline: http://www.zenwealth.com/BusinessFinanceOnline/CB/IRR.html ecommerce-now.com. (2001, 05 25). Budgets. Retrieved March 18, 2013, from ecommercenow.com: http://www.ecommerce-now.com/images/ecommercenow/budgets.htm#BUDGETS%20DEFINED Mark A. Lane, P. (2002 - 2013 ). Business Finance Online - Capital Budgeting. Retrieved February 26, 2013 , from zenwealth.com/BusinessFinanceOnline: http://www.zenwealth.com/BusinessFinanceOnline/CB/CapitalBudgeting.html Mind Tools. (2013, February 24). Conflict Resolution. Retrieved February 24, 2013, from Mind Tools: http://www.mindtools.com/pages/article/newLDR_81.htm Oldhand, T. (2013). What Are Key Management Change Issues That Accompany Changes to Business Processes? Retrieved mARCH 25, 2013, from ehow.com: http://www.ehow.com/info_7999668_key-accompany-changes-business-processes.html Research and Forecasting U.K. (2013, March 26). Care Homes Review. Retrieved March 26, 2013, from colliers.com: www.colliers.com/uk/healthcare Value Based Management . (2013, March 09). The BCG matris product portfolio method . Retrieved March9 09, 2013, from valuebasedmanagement.net/: http://www.valuebasedmanagement.net/methods_bcgmatrix.html WHO. (2002). Funding health care Options for Europe. In WHO, Funding health care Options for Europe (p. 41). Buchingham, Philadelphia: Open University Press.
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APPENDIXES Appendix-1
Occupancy Rate Payroll Cost Nursing Non-Payroll Cost Nursing Pay roll cost - pc Non-Payroll Coat PC Profit Margin- nursing Profit Margin- PC Average weekly fees- Nursing Average weekly fees- PC 96% 57.80% 14.80% 53.40% 16.30% 29.60% 30.10% 658 529
Appendix-2
SUMMARY OF PROJECTED INCOME STATEMENT FOR 12 MONTHS PROPOSED HEALTH &SOCIAL CARE Expected Sales for each month out of base total Base Total Revenue Nursing & Personal Care Total Revenues Cost of Sales Total Cost of Sales Gross Profit Expenses Non pay roll and expenses Total Expenses Operating Profit Before Financing Expenses Adjusted EBITADA Less Depreciation Adjusted Operating Profit Less Amortization of Assets Less Non- recurring Assets Operating Profit Before Finance Charges Add Finance Income Less Finance Expenses (440000 X 12%) Profit Before Taxation 29.85% 100% 55.10% 316397.14 316397.14 174334.82 174334.82 142062.32 3,954,964.25 3,954,964.25 2179185.30 2179185.30 1775778.95 Yearly Total (12 months)
15.05%
440000
14
Less Taxation 25% Profit for the period 1084556.83 271,139.21 888,417.62
Appendix-3
PROPOSED HEALTH & HOME CARE Start-up Expenses Sources of Capital Owners' Investment A TO E Total Investment Bank Loans Bank 1 Total Bank Loans Start-up Expenses Buildings/Real Estate Leasing Total Buildings/Real Estate Leasehold Improvements Modification Item 4 Total Leasehold Improvements Capital Equipment List Furniture Equipment Fixtures Other/Advance/Lease Deposit Total Capital Equipment Location and Admin Expenses Rental Utility deposits Legal and accounting fees Prepaid insurance Pre-opening salaries Other Total Location and Admin Expenses Opening Inventory Medicine and miscellaneous Total Inventory Advertising and Promotional Expenses Advertising Signage Printing Travel/entertainment
60000.00 60,000 440,000 440,000 100,000 100,000 30,000 30,000 100,000 100,000 30,000 10,000.00 240,000.00 3,000 5,000 10,000 20,000 12,000 50,000 8,000 8,000 5,000 2,000 2,000 2,000
15 Other/additional categories Total Advertising/Promotional Expenses Other Expenses Other expense 1/Inaugural Other expense 2 Total Other Expenses Reserve for Contingencies Working Capital Summary Statement Sources of Capital Owners' and other investments Bank loans Other loans Total Source of Funds Start-up Expenses Buildings/real estate Rent Leasehold improvements Capital equipment Location/administration expenses Opening inventory Advertising/promotional expenses Other expenses Contingency fund Working capital Total Start-up Expenses 60,000 440,000 500,000 100,000 30,000 240,000 50,000 8,000 12,000 10,000 20,000 30,000 500,000 1,000 12,000 5,000 5,000 10,000 20,000 100,000
Appendix-4
Revenue for Nursing Care Total Number of Beds Average Occupancy Therefore Monthly Occupancy= 50 x 96% Average Weekly Nursing Fees Therefore Daily Nursing Fees per bed = 658/7 Total Monthly Revenue for 48 Bed 48 x 94 x 30 Revenue for Personal Care Budgeted Personal Care Members from Society Amoun t 50 96% 48 658 94 135360 .(1) 100
16 Average Weekly Fees for PC Therefore daily Revenue = 529/7 Total monthly Revenue for P C 100 X 75.57 X 30 Total Nursing and PC Revenue 1 +2 Average Daily Revenue for Nursing and PC (135360 + 362074) 2 Therefore daily average income for Nursing and PC (316397.143 30) 529 75.57 226714 .(2) 362074
316397 .14
10546. 57
57.80% 53.40% 111.20 %
Standard Payroll Cost Nursing Standard Pay roll cost - pc Total Standard Cost Nursing and PC Average Standard Cost of Nursing and PC (111.20 2 ) Standard Non-Payroll Cost Nursing Standard Non-Payroll Coat PC Total Standard Non Pay-roll Cost Nursing and PC Average Standard Non-pay roll costing Nursing and PC=31.10% 2 Profit Margin- nursing Profit Margin- PC Total Margin for Nursing and PC 29.60 + 30.10 Average Margin for Nursing and PC 59.70 2 Average weekly fees- Nursing Average weekly fees- PC Total Average weekly fee for Nursing and PC = 658+529 Therefore Daily Average fee for Nursing and PC 1187/7
55.60 55.1 % 0
14.80% 16.30% 31.10%
15.55 15. % 05
29.60% 30.10% 59.70%
29.85 29. % 85
658 529 1187 169.57
5087.1
17
Appendix-5
PROJECTED INCOME STATEMENT FOR first quarter
PROPOSED HEALTH &SOCIAL CARE
May 50% Base Total 316397.1 4 316397.1 4 174334.8 2 174334.8 2 142062.3 2 2013 158,198.57 158,198.57 87,167.41
Expected Sales for each month out of base total first Quarter Months Revenue Nursing & Personal Care Total Revenues Cost of Sales
100%
55.10 %
87,167.41
122,034.3 8 99,443.62
139,467.86
Gross Profit
71,031.16
85,237.39
113,649.85
15.05 %
47617.77
23,808.88
28,570.66
33,332.44
38,094.22
47617.77 94444.55
23,808.88 47,222.27
28,570.66 56,666.73
33,332.44 66,111.18
38,094.22 75,555.64
Appendix-6
PROJECTED INCOME STATEMENT FOR Second Quarter PROPOSED HEALTH &SOCIAL CARE Expected Sales for each month out of base total Months Base Total
18
Revenue Nursing & Personal Care Total Revenues Cost of Sales Total Cost of Sales Gross Profit Expenses Non pay roll and expenses Total Expenses Operating Profit Before Financing Expenses 29.85% 15.05% 47617.77 47617.77 94444.55 42,855.99 42,855.99 85,000.09 47,617.77 47,617.77 94,444.55 52,379.55 52,379.55
103,889.00
100%
316397.14 316397.14
55.10%
174334.82
174334.82
156,901.34
174,334.82
191,768.31
209,201.79
142062.32
127,856.08
142,062.32
156,268.55
170,474.78
57,141.32 57,141.32
113,333.46
Appendix-7
PROJECTED INCOME STATEMENT FOR Third Quarter PROPOSED HEALTH &SOCIAL CARE Expected Sales for each month out of base total
January 130%
Months
Revenue Nursing & Personal Care Total Revenues Cost of Sales Total Cost of Sales Gross Profit 100%
Base Total
2014
55.10% 174334.82
Expenses
Non pay roll and expenses 15.05% 47617.77 47617.77 29.85% 94444.55
61,903.10 61,903.10 122,777.91 66,664.88 66,664.88 132,222.36 71,426.65 71,426.65 141,666.82 71,426.65 71,426.65 141,666.82
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Appendix-8
Project Charter
Date
31/03/2013
Executive Sponsor
Bank
Rationale Key Area of Focus Start Date To implement the health care project plan correctly within the specified time period
01/04/2013
30/04/2013
Project Scope IN
The health care industry requirements and opportunity widely expanding and demanding It benefits to the stake holders Quality service and performance Financial benefits
20 Measure
What is the benefit? Perfection in service What is the measure? Industry standards
Stakeholder
Who benefits? Community
Taxation
Financial benefit
Government
Internal stake holders
Start Out
01/04/2013
Project Team:
(A) ( Director) (B) Operation manager
Role:
Project manager and administrator Implementation of the plan Procurement and resource allocation including HR
Time commitment:
30 days 30 DAYS
Additional Information:
The project should be implemented at specified time and should be started providing services at pre-planned time schedule.
21
Appendix- 9
Appendix-10
ASSETS Current Assets Petty Cash Regular Checking Account Supplies Inventory Prepaid Expenses Other Current Assets
60,000.00 1,359,506.83 8,000.00 13,000.00 75,000.00
313,889.21
313,889.21
Total Current Assets Property and Equipment Furniture and Fixtures Equipment
200,000.00 30,000.00
Total Liabilities
313,889.21
22
Accum. Depreciation - Equipment Total Property and Equipment Other Assets Total Other Assets Total Assets
0.00 <43,200.00>
Capital
186,800.00
Paid-in Capital Retained Earnings Net Income Total Capital Total Liabilities & Capital
1,388,417.62
1,702,306.83
1,702,306.83
Appendix 11
Income Statement for 12 month ending Revenues Professional Fees Other Income Total Revenues Current Month 3,954,964.2 5 75,000.00 4,029,964.2 5 98.14 1.86 100.00
54.07
54.07
Gross Profit
45.93
Expenses Default Purchase Expense Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal and Professional Expense Licenses Expense Office Expense Other Taxes Rent or Lease Expense Supplies Expense Travel Expense Salaries Expense Other Expense
305,222.12 5,000.00 43,200.00 313,889.21 10,000.00 52,800.00 5,000.00 30,000.00 2,000.00 13,000.00 100,000.00 2,000.00 2,000.00 20,000.00 58,250.00
7.57 0.12 1.07 7.79 0.25 1.31 0.12 0.74 0.05 0.32 2.48 0.05 0.05 0.50 1.45
23
962,361.33 888,417.62
23.88 22.05
Appendix 12 Cash flow statement 12 months ending Cash Flows from operating activities Net Income Adjustments to reconcile net income to net cash provided by operating activities Aksum. Depreciation - Equipment Supplies Inventory Prepaid Expenses Other Current Assets Income Taxes Payable Total Adjustments Net Cash provided by Operations Current Month
888,417.62
Cash Flows from investing activities Used For Furniture and Fixtures Equipment Net cash used in investing
500,000.00
24
Used For Net cash used in financing Net increase <decrease> in cash 500,000.00 1,419,506.83
Summary Cash Balance at End of Period Cash Balance at Beg of Period Net Increase <Decrease> in Cash
Appendix 13
STATEMENT OF CHANGES IN FINANCIAL POSITION
Year To Date
Sources of Working Capital Net Income Add back items not requiring working capital Accum. Depreciation - Equipmen Working capital from operations Other sources Paid-in Capital Total sources Uses of working capital Furniture and Fixtures Equipment Total uses Net change Analysis of componants of changes Increase <Decrease> in Current Assets Petty Cash Regular Checking Account Supplies Inventory Prepaid Expenses Other Current Assets <Increase> Decrease in Current Liabilities Income Taxes Payable Net change
888,417.62
25
Appendix 14
Appendix 15
Appendix 16
26
Appendix 17