Project Proposal Financial Part
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Meyisaw KassaProject Proposal Financial Part
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Meyisaw KassaHow To A Prepare a Business Plan …………………………………………………………….
7.4 Business cash Flow Statement
Business cash Flow Statement
YEAR 0 Year1 Year 2 Year 3 Year 4 Year 5
CASH INFLOWS
Share Capital
Loan 100,000
Net income 505,173 504,376 503,594 502,833 502,102
Depreciation
&Amortization 9,050 9,050 9,050 9,050 9,050
Total Cash
Inflows 500,000 514,223 513,426 512,644 511,883 511,152
CASH OUT
FLOWS
Working
Capital
Increment 300,700 922 977 1036 1098
fixed Asset
Investment 168,000
Loan
Repayment 16057 17823 19784 21960 24376
Dividend 100,000 100,000 100,000 100,000 100,000
Total Cash
outflows 468,700 116,057 118,745 120,761 122,996 125,474
Net Cash
Inflows 31,300 398,166 394,681 391,882 388,887 391,8827
385,678
Cumulative
cash Inflows 429,466 824,147 1,216,029 1,604,916 1,990,595
Loan Repayment Schedule
LOAN REPAYMENT SCHEDULE
End of Beginning Periodic Interest Principal Ending
Year Loan bal Payment Expense Payment Loan Bal
1 100,000 27057 11000 16057 83,943
2 83,943 27057 9234 17823 66,120
3 66,120 27057 7273 19784 46,336
4 46,336 27057 5097 21960 24,376
5 24,376 27057 2681 24376 0
Financial Plan
Total Capital Requirement
The Start- up assets of Birr 500,000 is needed to Commence the operation in
order to fulfil the capital requirement issued a share capital and raised Birr
400,000 The remaining Birr 100,000 is expected to be financed using a bank
loan which will be raised at an interest rate of 11% The loan Will be repaid in
Five equal annual installment
The total requirement are show below :
Source Amount Use Amount
Share Capital Birr 400,000 Working Capital Birr 300,700
Bank Loan Birr 100,000 Fixed Asset Investment Birr168,000
(Building &Other
Construction .Equipme
nt ,Tools, Furniture )
Birr 31,300
Capital Birr 500,000 Birr 500,000
Requirement
Hous Rent 155,000 155,000 155,000 155,000 155,000 155,000
Less: 7,750 15,500 23,250 31,000 13,000
Accumulat
ed
Deprecatio
n
Equipemen 13,000 13,000 13,000 13,000 13,000 13,000
t Tools&
Fumiture
Less: 1,300 2,600 3,900 5,200 6,500
Accumulat
ed
Deprecatio
n
Total Fixed 168,000 158,950 149,900 140,850 131,800 122,750
Assets
Total 500,000 889,116 1,275,66 1,659,4 2,040,3 2,418,0
Assets 9 79 51 78
Liability &
Capital
Liability
Current 0 0 0 0 0 0
Liablity
Loan 100,000 83,943 66,120 46,336 24,376 0
Payable
Total 100,000 83,943 66,120 46,336 24,376 0
Liablity
Capital
Share 400,000 400,000 400,000 400,000 400,000 400,000
capital
Retained 0 405,173 809,173 1,209,5 1,613,1 2,015,9
Earnings 49 43 75
Total 400,000 805,173 1,209.55 1,613,1 2,015,9 2,418,0
Capital 43 75 78
Total 500,000 889,116 1,275,66 1,659,4 2,040,3 2,413,0
Liablity 9 79 51 78
&Capital
How to prepare A Business Plan …………………………………
Projected Income statement
The Project Income Statement of Animfarm is Presented
as Follows.
PROJECTED PROFIT & LOSS STATEMENT
Item Year 1 Year 2 Year 3 Year 4 Year 5
1688930 1688930 1688930 1688930 1688930
Less: 947,206 950,109 953,188 956,451 959,916
Operatting
Expeseses
Profit 741,726 738,821 735,743 732,479 729,020
Before
Dep,&Tax
Less Dep,& 9,050 9,050 9,050 9,050 9,050
amortizatio
Profit 732,676 729,771 726,693 723,429 719,970
before
interest &
Tax
interest 11,000 9,234 7,273 5,097 2,681
profit 721,676 720,537 719,419 718,332 717,289
before
&Tax
Less : Profit 216,503 216161 215826 215500 215187
income )
tax (30%)
Net Profit 505,173 504,376 503,594 502,833 502,102
Business Balance sheet
The projected balance sheet of e Electronics selling is presented as follows
besides on the Project Five Years data, the balance Sheet reports the
start – up assets and the sou8rce of financing
Business Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current
Assets
Cash 31,30 429,466 824,147 1,216,0 1,604,9 1,990,5
0 29 16 95
Stock & 300,7 300,700 301,622 302,599 303,635 304,733
other short 00
term
assets
total 332,0 730,166 1,125,7 1,518,6 1,908,5 2,295,3
Current 00 69 29 51 28
assets
