ENT300 12 Financial Plan
ENT300 12 Financial Plan
ENT300 12 Financial Plan
0 BUSINESS PLAN
(FINANCIAL PLAN)
CLO3:
Demonstrate entrepreneurial skills in preparing a business plan
11.0 Business Plan - Financial Plan
Learning Outcome
At the end of the session, students should be able to:
Operations Plan
Operations Budget
Step 2: Determine the Project Implementation Cost
2) External sources
✓ Term loan
✓ Hire purchase
✓ Others
Step 4: Prepare Pro Forma Cash Flow Statement
• The total amount of funds that has to be sourced should equal the
total project implementation cost calculated earlier. This is to
ensure that the project is fully funded as well as to avoid the risks
of under-financing.
Step 4: Prepare Pro Forma Cash Flow Statement
Owners’ Equity
Capital 72,500 72,500 72,500
Accumulated profit 15,400 54,800 125,475
87,900 127,300 197,975
Long-term Liabilities
Term loan 36,000 27,000 18,000
Hire-purchase 16,000 12,000 8,000
52,000 39,000 26,000
Total Owners’ Equity & Liabilities 139.900 166,300 223,975
Step 7: Perform Basic Financial Analysis
Owners’ Equity
Capital 105,500 105,500 105,500
Accumulated profit 24,000 82,850 222,545
129,500 188,350 328,045
Long-term Liabilities
Term loan 132,000 99,000 66,000
Current Liabilities
Accounts payable 9,000 15,000 21,600
• Liquidity Ratios
• Efficiency Ratios
• Profitability Ratios
• Solvency Ratios