Financial Projection

Topics: Depreciation, Expense, Advertising Pages: 3 (725 words) Published: June 6, 2011
Financial Projection
Use fund
Start-up ExpensesFirst month (RM)First 6 month (RM)
Salary- CEO1,80010,800
Salary- 5 Staff7,50045,000
Advertising- Newspaper4502,700
Advertising- Magazine8004,800
Brochure fees120720
Promotion- Coupon6,5008,500
Promotion- Discount5,0007,500
Web site registration and maintenance fee3001,800
Insurance (Company)2501,500
Legal fees200200
Registration for Business License150150
Business License200200
Telephone and internet bill155930
Electricity and water bill4502,700
Petrol expense3201,920
Insurance and road tax1,0501,050
Office Stationary8080
Total investment71,604218,224

Sources of Funds
1.CEO’s contribution – RM 50,000
2.Others staff contribution– RM 200,000
3.Subsidies from Government – RM 80,000
Total capital = RM 50,000 + RM 200,000 + RM 80,000
= RM 330,000
The first six month of total expense for UVP is RM 218,224. The detailed information of expenses is listed as follows. Based on this, the capital is set as RM 330, 000. These extra funds are needed for running cash flow and backup of cash. Assumptions Sheet

Note 1: Sales in year 2011 is a combination of sales that includes Worker Uniform with Hat, Long Sleeve and Long Pant. The calculation of sales is as follows: •Worker Uniform with Hat: RM 120 X 2500 = RM 300,000

Long Sleeve: RM 70 X 2000 = RM 140,000
Long Pant: RM 60 X 1850 = RM 111,000
Note 2: Salary for CEO is RM 1,800 whiles the salary for others staff is RM 1,500. The salary will increase 10% every year as recognition to our employees. Note 3: UPV spends RM 450 for advertisement on The Star newspaper every month. The advertisement rate is RM 45 per day, therefore, with RM 450 we are able to advertise 10 times between Mondays to Saturdays for each month. Besides, we also spend RM 800 every single time when advertising on the magazine. In addition, UPV are gives out coupon and discount as a...
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