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FINANCE PLAN

INTRODUCTION

The financial plan is the final step in the preparation of the business plan in achieves the
mission, vision and goals of the business. It is the most important aspect of the business plan
and involves the determining and the total project cost, choice of sources of financing and
the preparation of the financial projection in terms of pro forma statements, which include
cash flow, income statements and balance sheet.
Financial information.

The estimated cost to start the business is about RM 70, 000.00. The sources of fund are contributes from partners
as opening capital.

POSITION NAME OF PARTNERS PERCENTAGE


Marketing Manager Rahim 25%
Administration Manager Adilla 25%
Operation Manager Syahirah 25%
Finance Manager Ain Nadhirah 25%

POSITION NAME OF PARTNERS PERCENTAGE


Marketing Manager Rahim RM 14,000
Administration Manager Adilla RM 14,000
Operation Manager Syahirah RM 14,000
Finance Manager Ain Nadhirah RM 14,000
Capital Expenditure
Estimated
Estimated
Types of Fixed Assets Economic Life
Cost (RM)
(years)
Administrative/Organisation
Land & Building
-
Cash Register 5
1,000

Capital Expenditure
Equipment of shop 5
7,185
5
5
Sales/Marketing
Signboard 8
1,000
Motorcycle 5
20,000
5
5
Operations/Technical
Refrigerator 5
3,600
Centrifugal and Masticating
5
Juicers Machine 2,100
Commercial Blender 5
600
Ice Machine 5
1,600
Total
37,085
Pre-Operating & Working Capital Projections
Pre-Operating & Incorporation Costs (one-off) RM
Development cost 1,000
Business incorporation 70

Pre-Operating & Working Capital Projections


Deposit (rent, utilities, etc.) 3,000
Other pre-operating & incorporation costs 1,200
Sales & Marketing Costs (monthly)
Salaries, Wages, EPF & SOCSO
Instagram Ad 500
Facebook Add 500
Paid Review Instagram 500
Pamphlet 300
Business card 200

General & Administrative Costs (monthly)


Rental Shop 1,500
Salaries, Wages, EPF & SOCSO
pest control 150

Operations & Technical Costs (monthly)


Purchase of Raw Materials/Goods 5,029
Carriage Inwards 1,000
Salaries, Wages, EPF & SOCSO 4,600
Operation overheads 2,050

Other Expenditure (annually)


Maintenance 3,000

Total Pre-Operations & Working Capital Expenditure 24,599


Sales Projections RM Sales & Purchase Projections

January 2019 24,500


February 2019 18,000 Sales Collections
March 2019 25,000
In the month of sales 100%
April 2019 21,000
May 2019 15,000
One month after sales 0%
June 2019 18,000 Two months after sales 0%
July 2019 14,000
August 2019 16,000 Ending Inventory of Raw Materials RM
September 2019 21,000
October 2019 22,000 End of 2019 5,000
November 2019 24,500
End of 2020 5,000
December 2019 24,500
Total 2019 243,500 End of 2021 6,000
Total 2020 255,675
Total 2021 281,243
Purchase Projections RM
Sales & Purchase Projections
January 2019 5,029
February 2019 5,029
Purchase Payments

March 2019 5,029 In the month of purchase 100%


April 2019 5,029
One month after purchase 0%
May 2019 5,029
June 2019 5,029 Two months after purchase 0%
July 2019 5,029
August 2019 5,029
Ending Inventory of Finished Goods RM
September 2019 5,029
End of 2019 3,000
October 2019 5,029
End of 2020 5,000
November 2019 5,029 End of 2021 6,000
December 2019 5,029
Total 2019 60,348
Total 2020 63,365
Total 2021 69,702
Project Implementation Cost
Project Implementation Cost

Capital Expenditure Cost Sources of Financing


Land & Building Cash
Cash Register 1,000 Cash
Equipment of shop 7,185 Cash
Cash
Cash
Signboard 1,000 Cash
Motorcycle 20,000 Cash
Cash
Cash
Refrigerator 3,600 Cash
Centrifugal and Masticating Juicers Machine 2,100 Cash
Commercial Blender 600 Cash
Ice Machine 1,600 Cash
Working Capital 1 months
Sales & Marketing Costs (monthly) 2,000 Cash
General & Administrative Costs (monthly) 1,650 Cash
Operations & Technical Costs (monthly) 12,679 Cash
Pre-Operating & Incorporation Costs (one-off) 5,270 Cash
Other Expenditure (annually) 3,000 Cash
Provision for Contingencies 10% 5,868 Cash
TOTAL 67,552
Sources of Project Financing
Sources of Project Financing
Own Contributions
Capital Expenditure Cost Loan Hire-Purchase
Cash Existing F. Assets
Land & Building -
Cash Register 1,000 1,000
Equipment of shop 7,185 7,185
-
-
Signboard 1,000 1,000
Motorcycle 20,000 20,000
-
-
Refrigerator 3,600 3,600
Centrifugal and Masticating Juicers Machine 2,100 2,100
Commercial Blender 600 600
Ice Machine 1,600 1,600
Working Capital
Sales & Marketing Costs (monthly) 2,000 2,000
General & Administrative Costs (monthly) 1,650 1,650
Operations & Technical Costs (monthly) 12,679 12,679
Pre-Operating & Incorporation Costs (one-
5,270
off) 5,270
Other Expenditure (annually) 3,000 3,000
Provision for Contingencies 5,868 5,868
TOTAL 67,552 67,552
Type of Fixed Asset Cash Register Depreciation
Cost (RM) 1,000
Depreciation Method Straight Line Type of Fixed Asset Equipment of shop

Economic Life (yrs) 5 Cost (RM) 7,185

Annual Accumulated Depreciation Method Straight Line


Year Book Value
Depreciation Depreciation
Economic Life (yrs) 5
Annual Accumulated
- - 1,000 Year Book Value
Depreciation Depreciation

1 200 200 800


- - 7,185
2 200 400 600 1 1,437 1,437 5,748

3 200 600 400 2 1,437 2,874 4,311


3 1,437 4,311 2,874
4 200 800 200
4 1,437 5,748 1,437
5 200 1,000 -
5 1,437 7,185 -
6 0 0 - 6 0 0 -

7 0 0 - 7 0 0 -
8 0 0 -
8 0 0 -
9 0 0 -
9 0 0 - 10 0 0 -
10 0 0 -
Type of Fixed Asset Signboard Type of Fixed Asset Motorcycle

Cost (RM) 1,000 Cost (RM) 20,000

Depreciation Method Straight Line Depreciation Method Straight Line

Economic Life (yrs) 8 Economic Life (yrs) 5

Annual Accumulated Annual Accumulated


Year Book Value Year Book Value
Depreciation Depreciation Depreciation Depreciation

- - 1,000 - - 20,000

1 125 125 875 1 4,000 4,000 16,000

2 125 250 750 2 4,000 8,000 12,000

3 125 375 625 3 4,000 12,000 8,000

4 125 500 500 4 4,000 16,000 4,000

5 125 625 375 5 4,000 20,000 -

6 125 750 250 6 0 0 -

7 125 875 125 7 0 0 -

8 125 1,000 - 8 0 0 -

9 0 0 - 9 0 0 -

10 0 0 - 10 0 0 -
Type of Fixed Asset Refrigerator Centrifugal and Masticating Juicers
Type of Fixed Asset Machine
Cost (RM) 3,600
Cost (RM) 2,100
Depreciation Method Straight Line
Depreciation Method Straight Line
Economic Life (yrs) 5
Economic Life (yrs) 5
Annual Accumulated
Year Book Value
Annual Accumulated
Year Book Value
Depreciation Depreciation
Depreciation Depreciation
- - 3,600
- - 2,100
1 720 720 2,880
1 420 420 1,680
2 720 1,440 2,160
2 420 840 1,260
3 720 2,160 1,440
3 420 1,260 840
4 720 2,880 720
4 420 1,680 420
5 720 3,600 - 5 420 2,100 -
6 0 0 - 6 0 0 -

7 0 0 - 7 0 0 -

8 0 0 - 8 0 0 -

9 0 0 - 9 0 0 -

10 0 0 - 10 0 0 -
Type of Fixed Asset Commercial Blender Type of Fixed Asset Ice Machine

Cost (RM) 600 Cost (RM) 1,600

Depreciation Method Straight Line Depreciation Method Straight Line

Economic Life (yrs) 5 Economic Life (yrs) 5

Annual Accumulated Annual Accumulated


Year Book Value Year Book Value
Depreciation Depreciation
Depreciation Depreciation

- - 600 - - 1,600

1 120 120 480 1 320 320 1,280

2 120 240 360 2 320 640 960

3 120 360 240 3 320 960 640

4 120 480 120 4 320 1,280 320

5 120 600 - 5 320 1,600 -

6 0 0 - 6 0 0 -

7 0 0 - 7 0 0 -

8 0 0 - 8 0 0 -

9 0 0 - 9 0 0 -

10 0 0 - 10 0 0 -
Pro-forma Cash Flow Statement
2019MONTHLY CASH FLOW
2019
Pre-
MONTH January February March April May June July August September October November December
Operations

CASH INFLOW
67,552 67,552
Capital (Cash)
Loan 0 0
Cash Sales 24,500 18,000 25,000 21,000 15,000 18,000 14,000 16,000 21,000 22,000 24,500 24,500 243,500
Collection of Accounts 0 0 0 0 0 0 0 0 0 0 0 0 0
Receivable
TOTAL CASH RECEIPT 67,552 24,500 18,000 25,000 21,000 15,000 18,000 14,000 16,000 21,000 22,000 24,500 24,500 311,052

CASH OUTFLOW

Pre-operating & Incorporation


5,270
Expenditure 5,270
Sales & Marketing Expenditure 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
General & Administrative
1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 19,800
Expenditure
Operations & Technical
12,679 12,679 12,679 12,679 12,679 12,679 12,679 12,679 12,679 12,679 12,679 12,679 152,148
Expenditure
Other Expenditure 3,000 3,000
Purchase of Fixed Assets 37,085 37,085
Hire-Purchase Repayment:
Principal 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0
Loan Repayment:
Principal 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0

Tax Payable 0 0 0 0 0 0 0 0 0 0 0 8,588


8,588
TOTAL CASH OUTFLOW 42,355 19,329 16,329 16,329 16,329 16,329 16,329 16,329 16,329 16,329 16,329 16,329 24,917 249,891
CASH SURPLUS (DEFICIT) 25,197 5,171 1,671 8,671 4,671 -1,329 1,671 -2,329 -329 4,671 5,671 8,171 -417 61,161
BEGINNING CASH BALANCE 25,197 30,368 32,039 40,710 45,381 44,052 45,723 43,394 43,065 47,736 53,407 61,578 0
ENDING CASH BALANCE 25,197 30,368 32,039 40,710 45,381 44,052 45,723 43,394 43,065 47,736 53,407 61,578 61,161 61,161
MONTH 2019 2020 2021

CASH INFLOW
67,552 0 0
Capital (Cash)
Loan 0 0 0
Cash Sales 243,500 255,675 281,243
Collection of Accounts Receivable 0 0 0

TOTAL CASH RECEIPT 311,052 255,675 281,243


Total Cash
CASH OUTFLOW
Inflows Total Cash
Pre-operating & Incorporation Expenditure SUMMARY Outflows
Ending Balance
Sales & Marketing Expenditure 5,270
General & Administrative Expenditure 24,000 24,000 24,000
19,800 19,800 19,800
2019 311,052 249,891 61,161
Operations & Technical Expenditure
Other Expenditure 152,148 155,165 161,502 2020 255,675 211,639 105,197
3,000 3,000 3,000
Purchase of Fixed Assets
37,085 2021 281,243 221,822 164,619
Hire-Purchase Repayment:
Principal 0 0
0 - -
Interest
Loan Repayment:
0 - - 0 0
Principal
0 - -
Interest 0 - -
Tax Payable 8,588 9,674 13,520
TOTAL CASH OUTFLOW 249,891 211,639 221,822
CASH SURPLUS (DEFICIT) 61,161 44,036 59,421
BEGINNING CASH BALANCE 0 61,161 105,197
ENDING CASH BALANCE 61,161 105,197 164,619
Pro-forma Income Statement

Years 2019 2020 2021

Sales 243,500 255,675 281,243

Less: Cost of Sales (Notes 1 & 2) 145,728 154,745 161,082

97,772 100,930 120,161


Gross Profit

Less: Expenditure

Pre-Operating & Incorporation Expenditure 2,270

General & Administrative Expenditure 19,800 19,800 19,800

Sales & Marketing Expenditure 24,000 24,000 24,000

Other Expenditure 3,000 3,000 3,000

Interest on Hire-Purchase

Interest on Loan

Depreciation of Fixed Assets 5,762 5,762 5,762

Total Expenditure 54,832 52,562 52,562

Net Income Before Tax 42,940 48,368 67,599

Tax 8,588 9,674 13,520

Net Income After Tax 34,352 38,694 54,079


73,046 127,125
Accumulated Net Income 34,352
Years Pro-forma Income Statement
Note 1 2019 2020 2021
Cost of Sales
Opening Inventory of Finished Goods 0 3,000 5,000
Add: Total Production Cost (Note 2) 148,728 156,745 162,082
0
Less: Ending Inventory 3,000 5,000 6,000
Total
145,728 154,745 161,082 Net
SUMMARY Total Sales Expenditure
Note 2 Income
Raw Materials
Opening Inventory 0 5,000 5,000
Add: Current Year Purchases 60,348 63,365 69,702 2019 243,500 54,832 34,352
Add: Carriage Inwards 12,000 12,000 12,000
Less: Ending Inventory 5,000 5,000 6,000
Raw Materials Used 67,348 75,365 80,702 2020 255,675 48,368 38,694
Labour
Salaries, Wages, EPF & SOCSO 55,200 55,200 55,200 2021 281,243 67,599 54,079
Factory Overhead
Depreciation of Fixed assets (Operations) 1,580 1,580 1,580
Operation overheads 24,600 24,600 24,600

Total Factory Overhead 26,180 26,180 26,180

Total Production Cost 148,728 156,745 162,082


Pro-forma Balance Sheet

2019 2020 2021


ASSETS

Non-Current Assets (Book Value)


Land & Building
Other Fixed Assets 29,743 22,401 15,059
Other Assets
Deposit 3,000 3,000 3,000
32,743 25,401 18,059
Current Assets
Inventory of Raw Materials 5,000 5,000 6,000
Inventory of Finished Goods 3,000 5,000 6,000
Accounts Receivable
Cash Balance 61,161 105,197 164,619
69,161 115,197 176,619

TOTAL ASSETS 101,904 140,598 194,678

Owners' Equity
Capital 67,552 67,552 67,552
Accumulated Income 34,352 73,046 127,125
101,904 140,598 194,678
Long-Term Liabilities
Loan Balance
Hire-Purchase Balance
-
Current Liabilities
Accounts Payable

TOTAL EQUITY & LIABILITIES 101,904 140,598 194,678


Financial Ratio Analysis
Financial Ratio Analysis 2019 2020 2021
LIQUIDITY
Current Ratio NA NA NA Break-even Analysis 2019 2020 2021
Quick Ratio (Acid Test) NA NA NA
Total projected sales(RM) 243,500 255,675 281,243

EFFICIENCY Total variable costs (cost of sales) 145,728 154,745 161,082


Receivable Turnover NA NA NA
Inventory Turnover 36 31 27 Contribution margin 97,772 100,930 120,161

Contribution margin ratio 40% 39% 43%


PROFITABILITY
Gross Profit Margin 40.15% 39.48% 42.72% Fixed costs 54,832 52,562 52,562
Net Profit Margin 14.11% 15.13% 19.23%
Return on Assets 33.71% 27.52% 27.78% Total costs 200,560 207,307 213,644

Return on Equity 33.71% 27.52% 27.78% Net Profit 42,940 48,368 67,599

SOLVENCY Break-even sales 136,558 133,150 123,024


Debt to Equity
Debt to Assets Percentage of break-even to sales 56% 52% 44%

Time Interest Earned #DIV/0! #DIV/0! #DIV/0!

PAYBACK PERIOD FOR INTERNAL RATE OF


START-UP FUND RETURN (IRR)
1 - 2 years 49%

TIME TO BREAK-EVEN
Less than 1 year