The Cutting Edge Landscaping Budget Proposal

Topics: Net present value Pages: 24 (1090 words) Published: November 8, 2015
The Cutting Edge Landscaping
Budget Proposal
for
[2015-21]

BUSN-278
[Term]
Professor[name]
DeVry University

Table of Contents

Section
Title
Subsection
Title
Page Number
1.0
Executive Summary

1
2.0
Sales Forecast

2.1
Sales Forecast

2.2
Methods and Assumptions
2
3.0
Capital Expenditure Budget

3
4.0
Investment Analysis

4

4.1
Cash Flows
5

4.2
NPV Analysis
5

4.3
Rate of Return Calculations
5

4.4
Payback Period Calculations
6
5.0
Pro Forma Financial Statements

5.1
Pro Forma Income Statement
7

5.2
Pro Forma Balance Sheet
7

5.3
Pro Forma Cash Budget
8
6.0
Works Cited

9
7.0
Appendices

10

7.1
Appendix 1: [Sales Budget]

7.2
Appendix 2:
[Capital Budget]

The Business Plan for the period 2015-16 to 2020-21 outlines the strategy that the company will pursue during the year for sustainable growth that is consistent with its overall philosophy of conducting business with a high sense of social commitment and adherence to ethics.

The Company identifies itself as a service provider for landscaping. The main aim of company provides superior customer service and creates a ‘one-stop’ company that could meet all landscaping needs.

The Company provides all fielding knowledge to their professionals. The company believes that professionalism goes beyond well-maintained equipment and clean uniforms; it is a positive can-do customers-focused attitude.

The objective for first five years of operation includes:

To create a service based company whose primary goal is to exceed customer’s expectations. The utilization of service to different 100 residential homes. To develop a sustainable business, surviving off its own cash flow.

The budget consists of four basic sections, namely Sales budget, methods and assumptions, capital budget and investment analysis. Investment analysis includes financials, cash flow, NPV,IRR and payback period.

1

2.1 Sales Forecast

Year 1
Year 2
Year 3
Year 4
Year 5
Sales
$242080
$244500
$246945
$249415
$251909

2.2 Methods and Assumptions

Sales have been considered as profit decided by the company. As company is in Miami and growth rate is their 1%. Therefore, next four years sales projected only 1% growth rate.

2

 
Unit
Life
Original Investment Cost
Depreciation Method
Annual Depreciation
Ending Book Value 2015-16
Ending Book Value 2016-17
Ending Book Value 2017-18
Ending Book Value 2018-19
Ending Book Value 2019-20
Pick up truck
1
20
$3,200.00
Straight line
$160.00
$3,040.00
$2,880.00
$2,720.00
$2,560.00
$2,400.00
Trailor
1
20
$4,000.00
Straight line
$200.00
$3,800.00
$3,600.00
$3,400.00
$3,200.00
$3,000.00
Long Lawn Mover
1
5
$500.00
Straight line
$100.00
$400.00
$300.00
$200.00
$100.00
$0.00
Small Lawn Mover
1
5
$250.00
Straight line
$50.00
$200.00
$150.00
$100.00
$50.00
$0.00
Lawn Trimmers
2
5
$100.00
Straight line
$20.00
$80.00
$60.00
$40.00
$20.00
$0.00
Lawn edgers
2
5
$100.00
Straight line
$20.00
$80.00
$60.00
$40.00
$20.00
$0.00
Safety Equipment
10
5
$1,000.00
Straight line
$200.00
$800.00
$600.00
$400.00
$200.00
$0.00
Tools
20
5
$1,000.00
Straight line
$200.00
$800.00
$600.00
$400.00
$200.00
$0.00
Cooler
1
5
$100.00
Straight line
$20.00
$80.00
$60.00
$40.00
$20.00
$0.00
Blower
2
5
$100.00
Straight line
$20.00
$80.00
$60.00
$40.00
$20.00
$0.00
Hedge Trimmer
2
5
$50.00
Straight line
$10.00
$40.00
$30.00
$20.00
$10.00
$0.00
Ladders
2
5
$25.00
Straight line
$5.00
$20.00
$15.00
$10.00
$5.00
$0.00
Buck Saw
1
5
$25.00
Straight line
$5.00
$20.00
$15.00
$10.00
$5.00
$0.00
 
 
 

 
 

 

 
 
 
 
 
$10,450.00
 
1010.00
9440.00
8430.00...
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