1

DEBRE MARKOS UNIVERSITY,

Burie campus

Department of Accounting and Finance

Project analysis and evaluation group assignment

Prepared by group Four members

1. Abel Matebie..... ..................................BER /378/09

2.Assefa Abayneh ..................................BER/385/09

3. Welelaw Mitku ..................................BER/428/09

4.Tibebu Tefera ....................................BER/425/09

5. Negash Abeje...................................BER/419/09

6.Yosef Tarekegn...............................BER/429/09

7.Waltengus Tigabu...........................BER/427/09

8.Zinash Amogne................................BER/264/08

9.Mulugeta Anagew.............,.................BER/418/09

1
 2
10.Solomon Desalegn.........................BER/422/09

11. Ngus Denekew..............................BER/420/09

Submitted to instructor Getnet ,H (MSC)

Submitted date May/3/2011

Burie Damot, Ethiopia 2011

List of table
Table 1.................................................................................................................................................5
Table 2.................................................................................................................................................6
Table 3...............................................................................................................................................14
Table 4...............................................................................................................................................23
Table 5...............................................................................................................................................24
Table 6...............................................................................................................................................25
Table 7...............................................................................................................................................26
Table 8...............................................................................................................................................26

2
 3

Table of content
Content. Page
Project title...................................................................1
Introduction...................................................................1
1 .Background of the project.............................................
2 .The project area.............................................................
2.1. Location......................................................................
2.2.infrastructure facility..................................................
2.3. Socio economic condition.........................................
3. feasibility of the study.................................................

3
 4
4. Executive summary......................................................
5.The Project......................................................................
5.1.project description...................................................
5.2. The life project.......................................................
6. Technical analysis of the project......................................
6.1.market demand investigation and project strategy for
sale..........................................................................................
...
6.1.1.market prediction ......................................................
6.1.2.demand factor analysis.............,.................................
6.1.3 Method of demand
forecasting.......................................
6.2.Target
group..........................................................................
7. Objective the
project.....................................................................
7.1.General
Objective.................................................................
7.2. Specific
Objective................................................................

4
5

5
 6
8. Organization and
Management..................................................
9. Financial
analysis........................................................................

9.1 Capital expenditure............................................................

9.2 Fixed investment...............................................................
10.Statement Of the
project..........................................................
10.1.Income statement............................................................
10.2.break even analysis.........................................................
10.3.Cash flow statement......................................................
10.4.balance Sheet...............................................................
Conclusion................................................................................
..
Annex.......................................................................................
..

6
 7

Project title
apple production business at Snan Woreda,Telesamo kebele.
INTRODUCTION
As we all know hence agriculture is the back bone of Ethiopian economy, The Government had
been played his role to increase agricultural production based on which the resource required for
the expansion of industry and other develop sectors can be achieved when agriculture’s output is
grown. To this extreme the government is implementing a development strategy with the aim of
changing the backward farming practices of the majority of small scale farmers and improve
their living standards by increasing farm out puts and productivity to bring economic increase the
productivity based on the Government strategy for the last seven year.

However still, the production and the demand cannot be balanced. Because of this, different
programs are considered to be designed by the Government to overcome this problem. One of
the programs is agricultural growth program that set its objectives to increase production and
productivity of agricultural output in potential areas along with value addition of agricultural
products and enhancing agro- processing industries in innovative farmers Different common
interest groups are organized in different commodities with developing innovative solution.

One of the commodities that farmers proposed with their interest is Apple production with the
purpose of increasing product of apple fruit and supply to the local farmers and market.

7
 8
1. Back ground of the project
Our apple production project will be established in the region of Amhara in a particular place of
East Gojjam zone in Sinan wereda Telesamo kebele.Our project desire to solve immediate and
future problems in the society regarding on the demand individual to affect the need & want of
customers as well as customer satisfaction. The location of our project is very suitable also for
rural community due to there is good transportation accesses for rural society. Our project
location is intended to be established at suitable enviroment for apple production.the condition
good for easily advertising our products with less cost like billboard. Initially, as we start our
work we prepare a ceremony and during that day we announce the nature of our products, our
pricing system, how will it become the relationship with customers, the type of products by our
project. Then we prepare leaflets and post them in different places to announce the products
and draw product types and post them on visible places to attract and announce them for
different customers.

2. THE PROJECT AREA

2.1 LOCATION
The project is located in Amhara National Regional state, East Gojam zone in Snan Woreda at
Telezamo kebele. This woreda is one of the 18 woredas found in East Gojam Zone of Amhara
Reginal state. Erob gebiya is the capital town of this woreda. The rainfall in the area is
characterized by its bi-modal distribution pattern the short rainy season (belg) is between January
and April. The main rainy season (summer) is between May and September. The mean annual
rainfall is about 1350 mm the annual mean maximum temperature is about 25o C and annual
mean minimum temperature is about 10oC.

The total area of the district is 70238 hector out which 38524 hector is cultivated land 5513
hectors is forest and shrub land 3565 ha is grazing land 15820 ha is the area covered by
construction 1466 ha is uncultivable land and 571 ha is covered by investment like flower
prproduction.

The district has 144456 total population out of which 72370 is male and 72086 female and there
are 26497 total households from which 24428 are male households and 2069 are female
households all of the population are rural dwellers Estimated family size per household (rural) is
about 5 hectare per household.75% of the woreda is medium high land and 25% is high land the
altitude range of is 1850 -2800 m land has the annual average rain fall of 1350mm.

8
 9
The soil type of the woreda is 70% Red soil, 25% Verity soil and 5% is Mixed soil the economic
base of the district is agriculture the majority of the residents depend on crop production for their
livelihood individual smallholder farms are the sole and dominant production units the sector is
characterized by high productivity Due to the favorable weather condition of the woreda in terms
of soil type Rain fall and agro ecology Major crops grown in the district includes teff wheat
barley and maize they are covered by these crops is 15010, 9696,2970 &hectare respectively
(Agronomist) in all agro ecology farmers produce crop primarily for market and consumption
purpose 95% of the total crop production is produce during summer, and the rest 5% is produced
through irrigation.

Major vegetables and fruit grown in the district include tomato, red Onion, potatoes cabbage and
garlic. The area covered by these vegetables and Fruit is 1650, 1076, 720,175 and 125 hectares
respectively (Agronomist) pulses (beans peas haricot beans chickpea vetch and lentils), Oil crop
(Noug and linseed). The woreda is known to have high potential of different vegetables and fruit
production beside this there are cattle ovine sheep and goat poultry and bee calories in the
woreda.

2.2 INFRASTRUCTURAL FACILITY

Road: - the woreda is located on the asphalt rood crossing from Addis Ababa to Jimma which is
32 km long and connects 9 peasant associations with the capital city of the woreda there is also
51.3 km all weather roods which connect 12 PA’s with woliso town and there is dry season rood
which connect 14 PA’s with the capital town.

Water: - regarding rural water, the woreda has 43 development spring 100 hands dug well, 60
shallow wells and 3 deep wells.

Telecommunication and electrification: - 37 kebeles of the woreda are served with wireless
telecommunication service and 899 people of 8 kebele are served with hydro electric power

2.3 SOCIO ECONOMIC CONDITION

Social Service: - Education in the woreda there are

 24 primary and junior secondary school constructed by Government

 Two secondary high school owned by Government

Health: - Regarding this the woreda has 6 health center and 14 health posts which serves
rural kebeles and the service coverage of the woreda is 58.6%.

9
 10
3. Feasibility study
Our project selection of apple production is based on the analysis of feasibility and feasibility of
our project through in terms of the following base's of project identification

3 .1 Qualitative factor justifications of the project

The first stage in the project cycle and in the planning is to find potential projects. The source of
projects may be based on the following critical sources.

Based on need

Need means making available all people in our area of project of minimal amounts of a certain
basic material requirements and service.

When we observe the demand of the town and the rural community, it is increasing from time
to time. There is an unsatisfied demand by quality, quantity, as well as price.

So, we desire to fill those unsatisfied demands of the community as whole as well as other users
from far apart place.

Market based

When we see the gap between supply and demand, the existence of unsatisfied demand create
an opportunities for our project able to get the room for our product/project.

As we mention the above on the need based criteria we see unsatisfied need this make the
market share for our products/ project is more elastic or used to make our product is
demanded by most customers this improve sales as well as profits

Resource based /input availability

Resource is scarce but human wants are unlimited. As result we try to find the way to use
these scarce resources in profitable way and producing the intended product by using of

10
 11
less of inputs. This means our project is applying production efficiency policy. This policy
shows producing the desire product by less of input at the right time in the right place
for the right customers. We will try to find the opportunity to make profitable use of
available resource .

Technology

As we know technology is the tool machine which simplifies our work. Technology saves our
cost, and enables to perform every activity easily. As much as possible we try to use the
available technology which is not complex for our employee but help to facilitate our
work of project.

Knowledge

Knowledge means the fact of knowledge about something, general understanding or familiarity
with a subject, place, situation etc. for our project there is sufficient knowledge to operate the
machine and other activities.

Cost

When we see cost it includes cost of raw material, or cost of factor of production, and
transportation cost. In our project there is cost effective. So our project may returning a benefit
that justifies the initial investment or economical.

We made pre-feasibility study in the above qualitatively, now we will describe this qualitative
factor into quantitative form as follows.

Table 1

11
 12

Factor rate for Apple production project at Telesamo

kebele
Factor Factor Very Good Average Poor Very Factor score
weight good poor

5 4 3 2 1

Need 0.2 √ 0.2x5=1

Market 0.20 √ 0.2x5=1

In put 0.3 √ 0.3x5=1.5

availability

Technology 0.15 √ 0.15x3=0.45

Knowledge 0.10 √ 0.1x3=0.3

Cost 0.05 √ 0.5x5=0.25

Total factor 1 =4.5

weight

Table 2

Factor rate for furniture production

Factor Factor Very Good Average Poor Very Factor
weight good poor score

5 4 3 2 1

Need 0.20 √ 0.2x4=0.8

Market 0.40 √ 0.4x5=2

12
 13
Factor rate for furniture production
In put 0.10 √ 0.1x5=0.5
availability

Knowledge 0.05 √ 0.05x2=0.1

Technology 0.2 √ 0.2x3=0.6

Cost 0.05 √ 0.05x4=0.2

Total factor 1 =4.2

weight

Remark: According to our pre-feasibility study analysis after we compare those two project
ideas we select the first project idea in Apple production in San wereda which has high factor
score. This is decided by taking in to consideration about the availability of enough input for our
product/unsatisfied demand and good geographical boundary of the wereda.

4. Executive summary
This project proposal addresses the establishment of furniture production to addresses the
demand of customers who demand furniture products in Adet town and rural community
around it . The name of the project and background information is described below.

Project assess

Region ………….Amhara

Wereda…………….Snan

Kebele..............Telesamo

Background information of the project

Our furniture manufacturing project at Adet town has the following background information.

13
 14
Type of project…..............Apple production project

Status of project …………...new project

Length of time......................for three years

Period. ....................................from September 2012 -2015 E.c

The project will be opened in the collective agreement of our group by assessing the demand
and supply of apple products as well as by assessing market condition and share of the product.

5.THE PROJECT

5.1 PROJECT DESCRIPTION

The project location is East Gojam Zone Snan woreda in Telesamo kebele. Total area of peasant
association is 800 hectar. the soil type of the area is 58%red soil, 36% verity soil and is mixed
soil. The area is totally mid high land.

There are crops like wheat, Teff, Barley Maize chickpea Noug linseed and so on there are also
vegetables like tomato onion Green peeper and cabbage Beside this there are domestic animals
like cattle sheep and goat Horse Donkey and paltry in the project area.

Challenges and opportunities:

Concerning the productivity of the agriculture the woreda has opportunities and
constraints/challenges

Opportunities

 suitable road
 Different infrastructure

Challenges

 Long harvesting time of the production

 Lack of management continuously
 Lack of sufficient irrigation
 Fluctuation of marker

5.2 The life of the project

Any business requires considering critically about its feasibility, competitors, and customers as
well as at which time period the business will be profitable. In regarding to our business ,

14
 15
initially the competitors will be less compete but later the competitors will revive and may
affect our project profitability .Due to such condition after there exist More and more
competitors, we should change our business. So, by considering the above factors the life of our
project will be for three years.

6. Technical analysis of the project

6.1 Market demand investigation and project strategy for sale
Market investigation means study or investigates the market situation for our business.

Investigation of the market is the core foundation for our business and creating customer
value

Investigation for our apple production business about demand of customers, availability of
raw materials, and suitability of the location for the proposed business project has the
following benefit.

Clearly understand needs and wants of customers.

To understand the balance of demand and supply

To identify target customer

Clearly to understand the benefit and risk level.

To know the best suppliers of input.

To know available market share

In general market investigation of the market situation, about the previous trend of other apple
producers, their customers’ relationship, pricing system enables our project to take advantages
over other apple producers and to design our project in a better manner. Our proposed
projects will be the leading apple producer businesses in Snan woreda as well as to produce
apple for other woreda community according to their demand .The project is designed to meet
unsatisfied needs of the customers by producing a quality of apple products for customers.
Furthermore the construction of the infrastructure is improving to link the town with most rural

15
 16
kebeles and this is another potential market opportunity which enables our project to be more
attainable

6.1.1 Market prediction

The proposed projects will be the first to produce a quality of apple products to the community
of the town as well as to the rural people in the organized manner in Snan wereda. This apple
production in a very organized manner increase relationship with the customer both inside and
outside the woreda community. The project is designed to meet unsatisfied needs of the
customers by producing a quality of furniture products for customers. Furthermore the
construction of the infrastructure is improving to link the town with most rural kebeles and this
is another potential market opportunity which enables our project to be more attainable.

6.1.2 Demand factor analysis

Demand analysis of every business plays a major role in order to analysis the demand of the
business to assess information about the past, the present and future prediction about the
particular business. Our business demand analysis is mainly concerned with two issues.

What will be the aggregate demand of the proposed project /product/ in the future?

What will be the expected market share of the proposed project?

Our proposed project is apple production demand factor analysis includes the following
futures.

Current demand of customers apple product.

Past and present supply level of apple products to customers.

Production possibilities and constraints

Cost of raw material and selling price of previous apple producers.

16
 17
A. General economic indicators

Demand analysis based on general economic indicators means factors related to socioeconomic
factors like product demand, population level, and growth of per capital income.

In relation to our project the demand of customers for apple products is increasing now due to
the increasing number of population who live in the town and the improvement of per capital
income of the society .

B. Government policy; There is no government policy which restricts our project. The
previous trend of the government policy supports some projects which is not pollute the
environment and have not negative impact on the local community. Also government gives
advance for projects which can create job opportunity, by reducing tax up to tax free allowance.
So, our project will create job opportunity for some persons as well as it has no negative impact
on the local community. So, it will be feasible and acceptable.

C. Present level of inputs; Around our project location, there is a good/availability of

raw materials which is used for apple products and based on this our project will be feasible and
acceptable to be profitable.

D . Infrastructure availability; the infrastructure around our project location is good for
raw material supplying and for distribution of our products and this helps to customers to take
products easily.

6.1.3 Method of demand forecasting

In this project demand forecasting, we use qualitative method of demand forecasting (expert
opinion) . This method calls for the pooling of views of a group of ideas on the expected future
sales and combining them in to the sale estimate. So, we have a good awareness about the
situations of apple production, and we also asked some persons who have participated apple
production for a long period of time about the demand of customers,

How seems like the purchasing power from time to time. In addition to this we have good
understanding about the availability of raw materials around our project location.

17
 18
NB: we don't use quantitative method of demand forecasting for our project because, around
our project location, there was no organized apple producers to maintain historical sales data
and to give us available past historical data especially quantitative data about their customer
and sales trend records. The previous apple producers in this location have not maintained their
historical sales data so, qualitative method of demand forecasting is suitable for demand
forecasting.

6.2. TARGET GROUP

The target group of the project are those farmers who are living in Snan worand and neigbor
woreda.some times the apple product transport to Debremarkos town.

BENEFICIARIES OF THE PROJECT

Direct Beneficiaries the member of group themselves.
Indirect Beneficiaries the surrounding community and other common interest group.
7. OBJECTIVE OF THE PROJECT

7.1 General objective

The general objective of the group/ project is to increase the production of themselves through
increasing the production and then to contribute into reduction of poverty , Encouraging farmers
to involve in the production of apple to Increase the productivity.

7.2 Specific Objective

 To increase the production and productivity

 To increase their annual income

 To scale up their experience to other neighbor farmers

 To creating job Opportunities

8.ORGANIZATION AND MANAGMENT

Strategy

18
 19
As they are innovation group; they will be use the following strategies

- Group discussion - Facilitation day to day technical support

- sharing experience

- Using action planning - Having regular meeting

- Creating market network - Monitoring and evolution
- Training and education

Expected out put

Improving live standard of group members by generation income from the project

-To transfer technology among farmers - improved market linkage

-Dietary values - Health benefits of people and members

Major activities

- Business plan preparation

- Purchase input - seedling

-Site selection and land preparation - Harvesting

-Plantation - Saving

-Detail Feasibility studies

Management:- the project has its own management committee members which control day to
day activity and evaluate based on the result that designed to be obtained in each production
season the committees and members are responsible to evaluate and take an action to solve the
problems encountered during the implementation as it is indicated by the by lows attached to this
document in general the group member are expected to manage their activities according to the
byelaw they prepared to achieve their goal by participating all members of group in any
concerning activities.

19
 20
Management structure of the group

-General Assemble - Board of director

-Controlling committee - Loan committee

Name of management committee members

1.Abel Matebie = chairman 2. Yosef Tarekegn = vice chairman

3. Tibebu Tefera = secretary 4. Welelaw Mitku = cashier

5.Assefa Abayneh = Accountant 6.Waltengus Tigabu = marketing

Buy lows: the group member of the sub project have their own buy lows which they should
guide and implement the activities planned to be performed to achieve their goals.

Objective of the group

To solve the problems of group members that can’t be solved individually

To develop self confidentiality.
To improve life standard of group members by increasing production and productivity.

Principle of group

Voluntary of membership
Members economic participation
Education, training and information
Democratic member control
Autonomous and dependency
Concern for community

Activities:

facilitating market for the product of members

management
Improving the tradition of saving
Give training education and information for the members

Rights and responsibility of members

Rights of members: the group members have the following rights

20
 21
Getting service delivered by the group

Participating on the meeting of the group members and giving suggestion decision etc.

• Have full right to elect and to be elected

• The members should share the advantage of a group when he/she want to withdrawal
from a membership.

Responsibilities of members

√ Paying the registration fee and saving

√ Respecting the rules and bylaws of the group
√ Giving care for group properties
√ Participating on regular meeting
√ Sharing the risks of the group

Conditions for withdrawal and dismissal from the group members

√ By voluntary
√ When member opposes the objectives and performance of the group
√ When the member leaves from the working place
√ Absence from the work for one month
√ When the member dies. Etc

Power responsibilities and duties of management bodies

Power and duties of the general assembly.

•Giving the final decision of the group

• Elect, avoid and giving the job position for the committee
• Approve the working plan and budget of the year
• Hearing the report of implementation of work and give the decision
• Preparation and approval of group by laws
• Resolution of conflicts etc

Management committee of the group

• The number of the management committee is five in number

• They elected by the general assembly of the group
• The regular meeting of the committee is two times a month.

Powers and duties of management committee

• Prepare the work and budget plan of the group

• Collect the saving from the group members

21
 22
• Record the daily activities
• Preparing performed activities and announce for the general assembly

Powers and duties of chairman, vice chairman, secretary, cashier

Chairman (responsible for general assembly): elected by the highest vote of general assembly

• Perform every activities of the group

• Chairs the meeting of management committee and general assembly
• Approve expense of the group
• Sign on the bank account

Vice chairman: elected by the general assembly

• Assists the chairman and represents in the absence of chairman

• Performs other activities given by the chairman

Secretary: elected by general assembly

√ Prepare the memo of the management committee and the general assembly
√ Arrange the document of management committee and general assembly

Cashier: elected by general assembly

√ Approve the income and expense of the group whether it record properly or not
√ He/ she should take the money into bank

He/she sign on the check of bank.

OUT COMES

Due to the above majors and critical activities were undertaken the following output will be
expected.

Half hector amount of land 4000 seed ling of apple (cutting of apple) will be produce and after
two year they can get 1000 kg of apple. And the outcomes can be Improve member’s life
standard by increasing income of members.

Impact of this project

Due to the conducive working environment and the chance they got from the government and
AGP financing the lively hood of the group will be proved.

22
 23
 Improving life standard of members
 Minimize unemployment
 Increase annual income etc.

9.FINANCIAL ANALYSIS
9.1 CAPITAL EXPENDITURE
As the organized farmers were considered us the middle and low income it is difficult for them
to finance the whole project cost from their pocket. As the result majority of the finance will be
expected from the project and the minimum 48.7% will be financed from their member.

9.2 FIXED INVESTMENT

- Land,

- House/office/
- Capital
-shallow well
- Labor
Materials:

 sharpened knife for budding and grafting

 Hoe three fingers
 watering can
 Cutting knife
 Grafting knife
 Connecter(grafting connector)
 Rake and spade
 pruning secure
 Rope and washer

Inputs:-

-Apple seedling

-Fertilizers

23
 24

Initial capital investment by source of finance

The initial financial requirement of the project is estimated birr 615500.for the only initial
investment from which 300,000 Birr (48.7%) is covered by group members and 315,500 birr
(51.3%) is planned to be financed from AGP this is only for the initial investment cost the
remaining cost is covered by the return of sub project when it earns .Total initial investment cost
by financing scheme is shown below.

Financing structure by source of finance for the initial investment

Table 3

Description Unit Group contribution AGP support TOTA

Quant Unit Total Qua Unit Total Quant Unit Total

. price price nt. price price . price price
Building

House/officer/ No 1 20000 20000 1 200000 200000

0 0
Equipment

Shallow well No 1 80000 80000 1 80000 80000

Watering can No 50 300 15000 50 300 15000

Hoe tree finger 15 300 4500 15 4500 4500

Rake and spade 20 250 5000 5000

Grafting knife 10 600 6000 10 6000 6000

Connector Pac 5 200 1000 5 1000 1000

ked
Pruning secure No 10 400 4000 10 4000 4000

Rope and washer No 10 5000 50000 10 50000 50000

Sharpened knife for No 20 500 10000 20 500 100000

budding and
grafting
Miscellaneous 10000 10000

24
 25
In put No

Apple seed No 200 100 20000 2000 100 200000

ling(grafted) 0 0
Fertilizers Kun 50 700 40000 50 40000 40000

Total cost 30000 31550 615500

0 0

Feasibility

The project can be viable due to the fact that there is good access to implement the project some
of these are;

Market: - in the sub- project area there is high demand of apple fruit by the community that
means the surrounding rural society and market hence the sub project can be viable

Market structure and analysis:- mainly production system proving Apple fruit distribution for
the surrounding market and others so it has a positive effect of marketing increasing their
income.

Market distribution: - After the harvesting of apple fruit the distribution or the marketing
system starts from the group to market to the surrounding farmers and union cooperatives.

Technical: - Technically it can be possible because of the fact that there are surplus products of
apple fruit to increase to productivity.

Organizational analysis: - there are organizational structure that can support the project
members by technical and material at woreda and kebele level.

Financial feasibility financially the project is visible because the incomes earned form this
project is much greater as compared to the expenditure of the sub-project costs.

Economic analysis: - As it is indicate earlier the project can play a significant role to the
economic growth because of the fact that the income of the farmers around the sub-project can
be increased due to the fact that there can be market suitability to their product that means can
supply their fruit as a raw material for the sub- project and the group member can generate
income from the project out put

Environmental analysis: - the sub project can be implemented without any contamination with
environment. That is environmentally friendly.

10 .Statement of The Project

25
 26
10.1.Project profit or loss (Income statement)
Our project will continue for three years and it will be expected its profitability over the next two years
relatively at constant condition. Profit is not generated the first year .

Table 4
Revenue 1 2 3

Sales 154400 154400

Less: CGS 307800 307800

Gross profit 1236200 1236200

Less: salary expense 434400 434400

depreciation expense 6800 6800

Administrative 15000 15000

expense

Advertising expense 10000 10000

Utility expense 15000 15000

Other expense 25000 25000

Total operating 506200 506200

expense

EBIT 730000 730000

Tax expense (20%) 146000 146000

Net income after tax 584000 584000

10.2.Break even analysis of our project

In order to analysis and understand the continuity of our project we must analysis the breakeven point of
the project. Breakeven point is a point on which to evaluate whether our project is get profit or loss or
get normal profit that is neither gain nor loss.

Table 15
1 2 3

Total fixed cost 456200 456200

26
 27
1 2 3

Selling price/kg 90 90

Variable cost/kg 50 50

BEP of our project 11,405kg 11,405kg

BES 1,026,450 1,026,450

10.3. Cash flow statement of our project

Table 5

1 2 3

Cash that will be 1484000 1484000

received from the
project

Cash from sale of 60000 60000

remaining materials
in the production
process

Total cash in flow 1544000 1544000

Cash out flow

27
 28
1 2 3

Employee salary 434400 434400

Utility expense 15000 15000

Cost of raw material 307800 307800

Administrative 15000 15000

expense

Advertising expense 10000 10000

Other expense 25000 25000

Tax 146000 146000

Subtotal of cash out 953200 953200

flow

Net cash in flows 590800 590800

10.4. Balance sheet of our project.

Table 6
Current asset 1 2 3

Begging cash 0 590,800 1,181,600

Cash on hand 106000 1060000 1060000

Cash at bank 48400 484,000 484,00

Total current asset 154,400 2,134,800 2,725,600

Long term asset

Less: Accumulated 95000 90000 85000

Depreciation of
equipment

Land 80000 80000 80000

Building 48200 46400 44600

Less:Acc.dep of
building

Total long term asset 223200 216400 209600

28
 29
Current asset 1 2 3

Total asset 176720 2,351,200 2,935,200

Liability and owners’

equity

Current liability 0 0 0

Long term liability 315000 0 0

Total liability 315,000 0 0

Owners’ equity 1452200 2,351,200 2,935,200

Total liability and 176720 2,351,200 2,935,200

owners’ equity

11.Conclusion
Our project is on apple production business to produce different apple products for customers by
producing a quality of apple product to satisfy their needs and we will meet our objective of being
profitable.

Generally, our project will be located in suitable place which is suitable for obtaining available resources
for our project work and this enables to our project to achieve the desired goal.

Annex

Record of government office, varies associations in India.

Related Britannica Articles apple production..

29