study gide
VI. FINANCIAL PLAN
A. CAPITAL REQUIREMENT The total project cost will be ₱24,168.50. Nevertheless, the capital requirement will be ₱22,057 since, labor, management fee and rent will be paid after generating sales. The payment for these expenses will be taken from sales and not on the capital investment. The capital requirement will be composed solely of the working capital of ₱22,057. Schedule shows the details of the capital requirement.
Schedule: CAPITAL REQUIREMENT
ITEMS Total Capital Requirement Budgeted Capital Requirement Working Capital
Stocks ₱7,000.00 ₱7,000.00
Feeds ₱14,055.00 ₱14,055.00
Veterinary Drugs ₱70.00 ₱70.00
Office Supplies ₱50.00 ₱50.00
Farm Supplies ₱342.00 ₱282.00
Labor ₱2,100.00 -
Transportation ₱150.00 ₱300.00
Rent ₱1,500.00 -
Marketing Expense ₱300.00 ₱300.00
Management Fee ₱500.00 -
Total Working Capital ₱26,067.00 ₱22,057.00
B. SOURCES OF FINANCING
Capital is the lifeblood of the business for without capital, the business will not be operated. The financial requirement will be financed by owner’s equity. The amount of ₱22,057.00 in the first cycle will be raised through equity financing. The equity capital will be invested at the start of the operation. The ending cash balance of ₱31,269.00 in the first cycle will be used for the operation of the second cycle.
C. PROJECTED FINANCIAL STATEMENT
Three financial statements were prepared. These include the projected income statement, cash flow statement and balance sheet. These statements show the profitability, sustainability, liquidity and worthiness of the business.
PROJECTED INCOME STATEMENT: Schedule shows the projected income statement of the project. The project will generate total sales revenue of ₱31,269.00 per cycle.
Schedule: DEN’S BROILER ENTERPRISE
Projected Income Statement
ITEMS First Cycle Second Cycle
SALES REVENUE 31,269.00 31,269.00
Less:Cost of Production
Stocks 7,000.00
A. CAPITAL REQUIREMENT The total project cost will be ₱24,168.50. Nevertheless, the capital requirement will be ₱22,057 since, labor, management fee and rent will be paid after generating sales. The payment for these expenses will be taken from sales and not on the capital investment. The capital requirement will be composed solely of the working capital of ₱22,057. Schedule shows the details of the capital requirement.
Schedule: CAPITAL REQUIREMENT
ITEMS Total Capital Requirement Budgeted Capital Requirement Working Capital
Stocks ₱7,000.00 ₱7,000.00
Feeds ₱14,055.00 ₱14,055.00
Veterinary Drugs ₱70.00 ₱70.00
Office Supplies ₱50.00 ₱50.00
Farm Supplies ₱342.00 ₱282.00
Labor ₱2,100.00 -
Transportation ₱150.00 ₱300.00
Rent ₱1,500.00 -
Marketing Expense ₱300.00 ₱300.00
Management Fee ₱500.00 -
Total Working Capital ₱26,067.00 ₱22,057.00
B. SOURCES OF FINANCING
Capital is the lifeblood of the business for without capital, the business will not be operated. The financial requirement will be financed by owner’s equity. The amount of ₱22,057.00 in the first cycle will be raised through equity financing. The equity capital will be invested at the start of the operation. The ending cash balance of ₱31,269.00 in the first cycle will be used for the operation of the second cycle.
C. PROJECTED FINANCIAL STATEMENT
Three financial statements were prepared. These include the projected income statement, cash flow statement and balance sheet. These statements show the profitability, sustainability, liquidity and worthiness of the business.
PROJECTED INCOME STATEMENT: Schedule shows the projected income statement of the project. The project will generate total sales revenue of ₱31,269.00 per cycle.
Schedule: DEN’S BROILER ENTERPRISE
Projected Income Statement
ITEMS First Cycle Second Cycle
SALES REVENUE 31,269.00 31,269.00
Less:Cost of Production
Stocks 7,000.00