2.

c
i- Sales budget
Pb-08 inc.
Sales budget
Year ending 31st march 2018
Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Total

I. South Asian dishes

Units sold 18400 37600 46400 64400 166800
Selling price per unit 1.25 1.25 1.25 1.25 1.25
Total revenue 23000 47000 58000 80500 208500

II. Thai & Chinese dishes

Units sold 3200 4800 10500 14000 32500
Selling price per unit 2.0 2.0 2.0 2.0 2.0
Total revenue 6400 9600 21000 28000 65000
A. Revenue from
Food-items (I + II) 29400 56600 79,000 108500 273500

B. Beverages 8,000 22,360 28,000 33,200 91560

Gross sales revenue
(A+B) 37400 78960 107000 141,700 365060
Less: Credit card
processing 750 1580 2140 2,830 7300
Less: Spoilage Allowance 1125 2370 3210 4,245 10950
Net revenue 35525 75010 101650 134625 346810

ii- Cost of goods sold budget

Pb-08 inc.
COGS budget
Year ending 31st march 2018

Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Total

I. South Asian dishes

Units sold 18400 37600 46400 64400 166800
Cost per unit 0.75 0.75 0.75 0.75 0.75
 Total cost 13800 28200 34800 48300 125100

II. Thai & Chinese dishes

Units sold 3200 5440 11760 15680 36080
Cost per unit 1.25 1.25 1.25 1.25 1.25
Total cost 4000 6800 14700 19600 45100

III. Beverages 1600 17890 22400 26560 68450

Total cost of goods sold 19400 52890 71900 94460 238650

iii- Labor budget

Pb-08 inc.
Labor budget
Year ending 31st march 2018
Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Total
I. South Asian Dishes
Units sold 18400 37600 46400 64400 166800
Production labor per unit 0.3 0.3 0.3 0.3 0.3
Production labor cost 5520 11280 13920 19320 50040

II. Thai & Chinese dishes

Units sold 3200 5440 11760 15680 36080
Production labor per unit 0.65 0.65 0.65 0.65 0.65
Production labor cost 2080 3536 7644 10192 23452

Total Production labor 7600 14816 21564 29512 73492

cost

iv- Operations Budget

Pb-08 inc.
Operations budget
Year ending 31st march 2018

Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Total
I. South Asian Dishes
Units sold 18400 37600 46400 64400 166800
Production labor per unit 0.25 0.25 0.25 0.25 0.25
Production labor cost 4600 9400 11600 16100 41700

II. Thai & Chinese dishes

Units sold 3200 5440 11760 15680 36080
Production labor per unit 0.35 0.35 0.35 0.35 0.35
Production labor cost 1120 1904 4116 5488 12628

Total Production labor 5720 11304 15716 21588 54328

cost

v- Selling & general expenses budget

Pb-08 inc.
Selling & general expenses budget
Year ending 31st march 2018
Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Total
I. South Asian Dishes
Units sold 18400 37600 46400 64400 166800
Production labor per unit 0.2 0.2 0.2 0.2 0.2
Production labor cost 3680 7520 9280 12880 33360

II. Thai & Chinese dishes

Units sold 3200 5440 11760 15680 36080
Production labor per unit 0.25 0.25 0.25 0.25 0.25
Production labor cost 800 1360 2940 3920 9020

Total Production labor 4480 8880 12220 16800 42380

cost

2 . d Cash flow statement

Pb-08 inc.
Cash flow statement
year ending 31st march 2018
Particulars Details Amount
A- Operating Activities

I- Cash Receipts
Cash sales 342010

II- Cash Payments

Payment of rent, employee benefit & other Operating expenses 250650

Cash Generated from operations 91360

(-) Tax Paid 8000
Net cash from operating Activities 83360

B- Investing Activities
Purchase of Tangible Asset (80000)
Purchase of Intangible Asset (35000)
Net cash outflow from Investing Activities (115000)

C- Financing activities

Issue of bank loan 45000

Issue of loan from Friend 16500
Interest Paid (4725)
Net cash outflow from Financing Activities 66225

D Net Increase in cash & Cash Equivalent (A+B+C) 34585

E Cash & Cash Equivalent at Beginning -
F Cash & Cash Equivalent at End ( D+E) 34585

2. e Estimated income statement

Particulars Note no. Detail (in $) Amount (in $)
Revenue From Operations
Revenue from operations 346810

Cost of Revenues from operations

Cost of Raw material, Supplies etc 130000
Rent 45000
Printing & Stationery 200
Salary to Staff 96000
Advertisement & sales Promotion 40000
Depreciation & Amortization 13000
Interest on Borrowings (bank loan @ 10.5%) 4725
Other Expenses ( Misc.) 635
Total cost 329560
Profit before Taxation 17250
(-) Tax 8000
Profit (Loss) after Tax 9250
(-) Dividend -
Profit (Loss) carried to balance sheet 9250
2. f Balance sheet
Pb-08 inc.
Balance sheet
Year ending 31st march 2018
Particulars Note no Current Year Previous Yr
( $ in 000) ($ in000)
Assets
Currents Assets
I - Cash and deposits 1 34.585
ii- Receivables franchisee -
iii- Inventories 2 1.5
iv- others 3 16.8
Total current assets (A) 52.885
Fixed assets
i - Tangible asset 80.0
ii - Intangible asset 35.0
iii - Investments -
Total Fixed Assets (B) 115.0
Total Assets ( A + B ) 167.885
Liabilities
Current liabilities
I - Accounts payable 4 14.635
ii - Short term debt 5 16.5
iii - Others 6 8.0
Total current liabilities (C) 39.135
Non Current Liabilities
i - Long term debt 7 45.0
ii - Others
Total Non-current Liabilities (D) 45.0
Total Debts (C+D) 84.135
Net Assets
i - Capital Stock 8 74.5
ii - Retained Earnings 9.25
Total Net Assets 83.75
Liabilities & Net Assets (D+E) 167.885

Notes to accounts
Note no Current Year Previous Year
($ in 000)
1- Cash & Deposits
 Cash Balance 5.4
Bank Balance 29.185

34.585

2- Inventories
Food & beverage 1.5

1.5
3- Other assets
Prepaid Expenses 12.0
Accrued Incomes 4.8

16.8
4- Tangible fixed Asset
Furniture & fittings 42.0
Crockery & utensils 17.5
Delivery vehicle 20.5

80.0
5- Intangible asset
Patents 35.0
5 Accounts Payable
Due to M/s Furniture mart 9.90
Due to Jack ( Supplier of crockery & utensils ) 4.735

14.635
6 Short term Debts
Borrowing from Mr. Gagan ( friend ) 16.5

7- Other Liabilities
Provision for tax 8.0

8.0
8 Long term Debt
Loan from RBC 45.0
9 Capital Stock
Own capital 74.5
Reserves & Savings 9.25

83.75

2. g Financial sources at different stages of venture development

Stage 1: Seed stage
This is the first stage of venture development wherein entrepreneurs develop the concept of new
business, formulating the vision for the new firm. In this seed stage Entrepreneurs expend a great
deal of time but a relatively lesser amount of money to explore the prospects of commercialzation
and development of the concept. Sources of finance at this stage are

Bootstrapping: In bootstrapping, Entrepreneurs tap their available personal savings and

personal borrowings, from friends, relatives or business associates, may also include
customer advances or extended payment lending from vendors.

Angel Financing: A risk averse wealthy individual, who often possess some
entrepreneurial experience interested to invest in small companies which have high
growth potential are the angel investors. They are often interested in financing these firms
in the early stages of development.
Stage 2: Start-up
In this stage, the management team is assembled to develop a more detailed plan, prototype is
tested and Product or service development takes place, and also marketing is done to test the
market potential. The typical time duration of this stage is one to two years
Source of finance: Angel investors, Venture capitalists & venture incubators of corporations &
universities

Stage 3: Early development

In this stage the firm secures its initial property, plant and equipment and products/ services are
actually manufactured/ rendered and shipped in commercial quantities. However the firm
remains in the non profitable at the end of this stage.
Source of finance: Angel investors, Venture capitalists & government

Stage 4: Expansion: For the expansion of its operations the firm requires additional finance
to purchase equipments and inventory and for increased working capital as well. This stage spans
about two years.
Source of finance: Venture capital and Banks.
Stage 5: Profitable but cash poor
In this stage the firm is generating profit margin, being positive thereby reducing the downside
risks. Retained earnings can become a internal source of finance available to them. However,
cash generated is not sufficient to meet the requirements of expansions and working capital
needs.
Source of finance: Venture capitalist, Retained earnings & Banks.
Stage 6: Rapid growth toward liquidity point
Ventures which reach this stage would have reduced the risk significantly and have become
fairly stable
Source of finance : Venture capitalist, Retained earnings & Banks.
Stage 7: Bridge stage
This stage is also called as Mezzanine Financing. It is the final growth and preparation stage
required before the harvest. At this stage the form of harvesting alternative will be determined,
so that the growth strategy and preparation is coined along the alternative chosen
Source of finance: Issue of debt, convertible bonds, or convertible preferred stock.
Stage 8 : Harvest
It involves the exit and cashing out of investments and all short term investors. The three main
Harvesting options are

Remaining private and replacing short term investors with long term investors
A developed firm chooses to remain private however the short term investors are cashed
out and replaced by long term investors by issuing long term additional securities to long
term investors. An alternative is a management buy out(MBO), in the firms management
raises capital ( usually the debt capital) to buy out the interests of most or all of the
shareholders

Being acquired
The larger established firm wishes to acquire the developed firm and offers the
acquisition bid. If the developed firm accepts the offer of being acquired, all the investors
would either receive cash for their held securities or shares of stock the acquiring firm

Going public
To liquidate the investments made by the private investors, a part of or in full their equity
positions in the firm, they may choose the firm to go for IPO. The firm issues new
common shares to raise capital for the firm from public. This new cash may be used for
many purposes like paying off debt, constituting the primary portion of the firm.
However the secondary portion of IPO could be used for liquidating the at least part of
their equity