Adventure Tours Financial Analysis
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AI Summary
This assignment tasks you with analyzing the projected financial performance of Adventure Tours and Travels Limited using key financial ratios. The analysis covers Net Profit Margin, Current Ratio, and Return on Equity over a three-year period. The objective is to provide insights into the company's profitability, liquidity, and efficiency based on these ratios for investors and stakeholders.
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Running head: MANAGE BUDGETS AND FINANCIAL PLANS
Manage Budgets and Financial Plans
Name of the Student:
Name of the University:
Author Note:
Manage Budgets and Financial Plans
Name of the Student:
Name of the University:
Author Note:
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2
MANAGE BUDGETS AND FINANCIAL PLANS
Executive Summary
The tourism industry in Australia had undergone rapid growth over several past decades. The
current trend shows that there is an increase in the number of tourists who enter the country and
provides an opportunity for Australian tours for penetrating in the market. The services of
Adventure Travel and Tours Limited will be positioned very carefully where the company will
deal with providing extremely high quality as well as comfortable experience to the clients so
that they have greater appreciation in the natural environment. In an nutshell, Adventure Travel
and Tours Limited do not just intend to market or sell the service but also to sell travel solutions
and provide a total quality environment to their valued customers that will help in establishing
reputable corporate image.
MANAGE BUDGETS AND FINANCIAL PLANS
Executive Summary
The tourism industry in Australia had undergone rapid growth over several past decades. The
current trend shows that there is an increase in the number of tourists who enter the country and
provides an opportunity for Australian tours for penetrating in the market. The services of
Adventure Travel and Tours Limited will be positioned very carefully where the company will
deal with providing extremely high quality as well as comfortable experience to the clients so
that they have greater appreciation in the natural environment. In an nutshell, Adventure Travel
and Tours Limited do not just intend to market or sell the service but also to sell travel solutions
and provide a total quality environment to their valued customers that will help in establishing
reputable corporate image.
3
MANAGE BUDGETS AND FINANCIAL PLANS
Table of Contents
Introduction to Business investors or stakeholders.........................................................................3
Vision Statement of Adventure Travel and Tours Limited.........................................................3
Mission Statement of Adventure Travel and Tours Limited.......................................................3
Goal of Adventure Travel and Tours Limited.............................................................................3
Objectives of Adventure Travel and Tours Limited....................................................................3
Financial Plan..................................................................................................................................5
Basic Assumptions.......................................................................................................................5
Start-up Cost................................................................................................................................6
Depreciation and Amortization Schedule....................................................................................7
Projected Room Bookings...........................................................................................................8
Projected Sales Revenue............................................................................................................10
Projected Expenses....................................................................................................................11
Projected Income Statement......................................................................................................13
Projected Balance Sheet............................................................................................................15
Projected Cash Flow Statement.................................................................................................17
Break-even Analysis..................................................................................................................22
Capital Budgeting Analysis.......................................................................................................25
Projected Ratio Analysis............................................................................................................26
Reference List................................................................................................................................27
MANAGE BUDGETS AND FINANCIAL PLANS
Table of Contents
Introduction to Business investors or stakeholders.........................................................................3
Vision Statement of Adventure Travel and Tours Limited.........................................................3
Mission Statement of Adventure Travel and Tours Limited.......................................................3
Goal of Adventure Travel and Tours Limited.............................................................................3
Objectives of Adventure Travel and Tours Limited....................................................................3
Financial Plan..................................................................................................................................5
Basic Assumptions.......................................................................................................................5
Start-up Cost................................................................................................................................6
Depreciation and Amortization Schedule....................................................................................7
Projected Room Bookings...........................................................................................................8
Projected Sales Revenue............................................................................................................10
Projected Expenses....................................................................................................................11
Projected Income Statement......................................................................................................13
Projected Balance Sheet............................................................................................................15
Projected Cash Flow Statement.................................................................................................17
Break-even Analysis..................................................................................................................22
Capital Budgeting Analysis.......................................................................................................25
Projected Ratio Analysis............................................................................................................26
Reference List................................................................................................................................27
4
MANAGE BUDGETS AND FINANCIAL PLANS
Introduction to Business investors or stakeholders
Vision Statement of Adventure Travel and Tours Limited
The vision statement of Adventure Travel and Tours Limited is to become one of the
well-known tourist resorts in Australia in the eyes of community, people and customer. The start-
up tourist resort expects and demands the best that they desire to offer by keeping the service on
top of the choice of valued local visitors and tourists (Renz 2016).
Mission Statement of Adventure Travel and Tours Limited
The mission statement of Adventure Travel and Tours Limited is to offer superior
hospitality experience and enhance guest’s maximum satisfaction. In addition, the start-up tourist
resort believes in creation of positive work environment for attainment of results to satisfy
guests, investors and employees. Adventure Travel and Tours Limited aims at satisfying the
tourist and local visitors who actually travel for relaxation (Petty et al. 2015).
Goal of Adventure Travel and Tours Limited
The goal of Adventure Travel and Tours Limited is to satisfy the need of valued
customers and guests by conducting market research.
Objectives of Adventure Travel and Tours Limited
To exceed in the customer expectations where the start-up company will provide access
to luxury services to the valued customers in terms of tours, travels and resort
To maintain 90% occupancy rate at the time of peak periods
To hire experienced and hardworking staff members
MANAGE BUDGETS AND FINANCIAL PLANS
Introduction to Business investors or stakeholders
Vision Statement of Adventure Travel and Tours Limited
The vision statement of Adventure Travel and Tours Limited is to become one of the
well-known tourist resorts in Australia in the eyes of community, people and customer. The start-
up tourist resort expects and demands the best that they desire to offer by keeping the service on
top of the choice of valued local visitors and tourists (Renz 2016).
Mission Statement of Adventure Travel and Tours Limited
The mission statement of Adventure Travel and Tours Limited is to offer superior
hospitality experience and enhance guest’s maximum satisfaction. In addition, the start-up tourist
resort believes in creation of positive work environment for attainment of results to satisfy
guests, investors and employees. Adventure Travel and Tours Limited aims at satisfying the
tourist and local visitors who actually travel for relaxation (Petty et al. 2015).
Goal of Adventure Travel and Tours Limited
The goal of Adventure Travel and Tours Limited is to satisfy the need of valued
customers and guests by conducting market research.
Objectives of Adventure Travel and Tours Limited
To exceed in the customer expectations where the start-up company will provide access
to luxury services to the valued customers in terms of tours, travels and resort
To maintain 90% occupancy rate at the time of peak periods
To hire experienced and hardworking staff members
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5
MANAGE BUDGETS AND FINANCIAL PLANS
Financial Plan
Basic Assumptions
BASIC ASSUMPTIONS:
Type of Business: Company
Nature of Project: Tours and Travels
Capital Structure:
Equity 50%
Non-Current Debts 50%
Types of Debts:
5 yr. Bonds at Par 0%
5 years Loan from Bank 100%
Required Rate of Return on
Equity 10.00%
Interest Rate on Loan:
Bonds 0.00%
Loan from Bank 8.50%
Tax Rate 30%
Inflation Rate 0.00%
Mode of Sales:
Cash 100%
Credit 0%
Cash Collection Period 30 days
Mode of Purchase:
Cash 50%
Credit 50%
Cash Payment Period 60 days
Wages & Salary Payment
15th day on the following
month
Electricity, Telephone &
Internet payment
7th day on the following
month
Other Operating Payments Last day of the month
Insurance & Membership
Fees 6 months' Advance
Depreciation Method:
Building & Improvement Straight Line Method
Furniture & Fittings
10% - Reducing Balance
Method
MANAGE BUDGETS AND FINANCIAL PLANS
Financial Plan
Basic Assumptions
BASIC ASSUMPTIONS:
Type of Business: Company
Nature of Project: Tours and Travels
Capital Structure:
Equity 50%
Non-Current Debts 50%
Types of Debts:
5 yr. Bonds at Par 0%
5 years Loan from Bank 100%
Required Rate of Return on
Equity 10.00%
Interest Rate on Loan:
Bonds 0.00%
Loan from Bank 8.50%
Tax Rate 30%
Inflation Rate 0.00%
Mode of Sales:
Cash 100%
Credit 0%
Cash Collection Period 30 days
Mode of Purchase:
Cash 50%
Credit 50%
Cash Payment Period 60 days
Wages & Salary Payment
15th day on the following
month
Electricity, Telephone &
Internet payment
7th day on the following
month
Other Operating Payments Last day of the month
Insurance & Membership
Fees 6 months' Advance
Depreciation Method:
Building & Improvement Straight Line Method
Furniture & Fittings
10% - Reducing Balance
Method
6
MANAGE BUDGETS AND FINANCIAL PLANS
Computer, Electrical Equipment
& Other Accessories
30% - Reducing Balance
Method
Kitchen Appliances, Cutleries &
Cookeries
40% - Reducing Balance
Method
Motor Vehicle Straight Line Method
Explanation
Motor vehicle and building & improvement will be depreciated by using straight-line method
Computer, Electrical Equipment, Kitchen appliances, and furniture & Fittings will be depreciated by using reducing
balance method
Mode of payment will be 50% of cash and 50% on credit
Loan from bank will taken at 8.50% (Madura 2014)
Start-up Cost
Particulars Amount
Residual
Value
Non-Current Assets:
Land $2,500,000 $0
Building & Improvement $5,000,000 $1,500,000
Furniture & Fittings $1,500,000 $450,000
Computer, Electrical
Equipment & Other
Accessories $3,000,000 $0
Kitchen Appliances, Cutleries
& Cookeries $1,250,000 $0
Motor Vehicle $1,000,000 $300,000
Preliminary Expenses:
Land Registration $65,000
Business Registration $125,000
License Fees $50,000
Deposit for Electricity $72,000 $72,000
Deposit for Telephone &
Internet $35,000 $35,000
MANAGE BUDGETS AND FINANCIAL PLANS
Computer, Electrical Equipment
& Other Accessories
30% - Reducing Balance
Method
Kitchen Appliances, Cutleries &
Cookeries
40% - Reducing Balance
Method
Motor Vehicle Straight Line Method
Explanation
Motor vehicle and building & improvement will be depreciated by using straight-line method
Computer, Electrical Equipment, Kitchen appliances, and furniture & Fittings will be depreciated by using reducing
balance method
Mode of payment will be 50% of cash and 50% on credit
Loan from bank will taken at 8.50% (Madura 2014)
Start-up Cost
Particulars Amount
Residual
Value
Non-Current Assets:
Land $2,500,000 $0
Building & Improvement $5,000,000 $1,500,000
Furniture & Fittings $1,500,000 $450,000
Computer, Electrical
Equipment & Other
Accessories $3,000,000 $0
Kitchen Appliances, Cutleries
& Cookeries $1,250,000 $0
Motor Vehicle $1,000,000 $300,000
Preliminary Expenses:
Land Registration $65,000
Business Registration $125,000
License Fees $50,000
Deposit for Electricity $72,000 $72,000
Deposit for Telephone &
Internet $35,000 $35,000
7
MANAGE BUDGETS AND FINANCIAL PLANS
Recruitment Cost $125,000
Share Issuance Cost $30,000
Other Miscellaneous Expenses $200,000
Working Capital:
Purchase of Food, Drinks &
Other Supplies $2,250,000
Wages & Salaries $500,000
Power & Fuel $200,000
Promotion & Advertisement $150,000
General Administrative
Expenses $300,000 $3,400,000
TOTAL START UP COST
$18,352,00
0
Capital Funding:
Equity Capital $9,176,000
Loan From Bank $9,176,000
TOTAL CAPITAL
EMPLOYED
$18,352,00
0
Explanation
Total start-up cost that will be required for starting Adventure Tours and Travel Limited will be $18352000.
In case of capital funding, the start-up business will apply for loan from bank amounting to $9176000, equity capital
amounting to $9176000 (Lasher 2013)
Depreciation and Amortization Schedule
DEPRECIATION & AMORTIZATION SCHEDULE:
Particulars
Opening
Balance
Salvage
Value
Estimate
d Life
Depreciatio
n Rate
Perio
d
Depreciatio
n Amount
Closing
Balance
(in
Years)
Building &
Improvements:
MANAGE BUDGETS AND FINANCIAL PLANS
Recruitment Cost $125,000
Share Issuance Cost $30,000
Other Miscellaneous Expenses $200,000
Working Capital:
Purchase of Food, Drinks &
Other Supplies $2,250,000
Wages & Salaries $500,000
Power & Fuel $200,000
Promotion & Advertisement $150,000
General Administrative
Expenses $300,000 $3,400,000
TOTAL START UP COST
$18,352,00
0
Capital Funding:
Equity Capital $9,176,000
Loan From Bank $9,176,000
TOTAL CAPITAL
EMPLOYED
$18,352,00
0
Explanation
Total start-up cost that will be required for starting Adventure Tours and Travel Limited will be $18352000.
In case of capital funding, the start-up business will apply for loan from bank amounting to $9176000, equity capital
amounting to $9176000 (Lasher 2013)
Depreciation and Amortization Schedule
DEPRECIATION & AMORTIZATION SCHEDULE:
Particulars
Opening
Balance
Salvage
Value
Estimate
d Life
Depreciatio
n Rate
Perio
d
Depreciatio
n Amount
Closing
Balance
(in
Years)
Building &
Improvements:
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8
MANAGE BUDGETS AND FINANCIAL PLANS
Year 1
$5,000,00
0
$1,500,00
0 25 1 $140,000
$4,860,00
0
Year 2
$4,860,00
0
$1,500,00
0 24 1 $140,000
$4,720,00
0
Year 3
$4,720,00
0
$1,500,00
0 23 1 $140,000
$4,580,00
0
Furniture & Fittings:
Year 1
$1,500,00
0 $450,000 12 10% 1 $150,000
$1,350,00
0
Year 2
$1,350,00
0 $450,000 11 10% 1 $135,000
$1,215,00
0
Year 3
$1,215,00
0 $450,000 10 10% 1 $121,500
$1,093,50
0
Computer, Electronic
Equipment & Other
Accessories:
Year 1
$3,000,00
0 $0 7 30% 1 $900,000
$2,100,00
0
Year 2
$2,100,00
0 $0 6 30% 1 $630,000
$1,470,00
0
Year 3
$1,470,00
0 $0 5 30% 1 $441,000
$1,029,00
0
Kitchen Appliances,
Cutleries & Crookeries:
Year 1
$1,250,00
0 $0 5 40% 1 $500,000 $750,000
Year 2 $750,000 $0 4 40% 1 $300,000 $450,000
Year 3 $450,000 $0 3 40% 1 $180,000 $270,000
Motor Vehicle:
Year 1
$1,000,00
0 $300,000 10 1 $70,000 $930,000
Year 2 $930,000 $300,000 9 1 $70,000 $860,000
Year 3 $860,000 $300,000 8 1 $70,000 $790,000
Projected Room Bookings
PROJECTED ROOM BOOKINGS:
1st Year 2nd Year 3rd Year
MANAGE BUDGETS AND FINANCIAL PLANS
Year 1
$5,000,00
0
$1,500,00
0 25 1 $140,000
$4,860,00
0
Year 2
$4,860,00
0
$1,500,00
0 24 1 $140,000
$4,720,00
0
Year 3
$4,720,00
0
$1,500,00
0 23 1 $140,000
$4,580,00
0
Furniture & Fittings:
Year 1
$1,500,00
0 $450,000 12 10% 1 $150,000
$1,350,00
0
Year 2
$1,350,00
0 $450,000 11 10% 1 $135,000
$1,215,00
0
Year 3
$1,215,00
0 $450,000 10 10% 1 $121,500
$1,093,50
0
Computer, Electronic
Equipment & Other
Accessories:
Year 1
$3,000,00
0 $0 7 30% 1 $900,000
$2,100,00
0
Year 2
$2,100,00
0 $0 6 30% 1 $630,000
$1,470,00
0
Year 3
$1,470,00
0 $0 5 30% 1 $441,000
$1,029,00
0
Kitchen Appliances,
Cutleries & Crookeries:
Year 1
$1,250,00
0 $0 5 40% 1 $500,000 $750,000
Year 2 $750,000 $0 4 40% 1 $300,000 $450,000
Year 3 $450,000 $0 3 40% 1 $180,000 $270,000
Motor Vehicle:
Year 1
$1,000,00
0 $300,000 10 1 $70,000 $930,000
Year 2 $930,000 $300,000 9 1 $70,000 $860,000
Year 3 $860,000 $300,000 8 1 $70,000 $790,000
Projected Room Bookings
PROJECTED ROOM BOOKINGS:
1st Year 2nd Year 3rd Year
9
MANAGE BUDGETS AND FINANCIAL PLANS
Particulars
Qt.
1
Qt.
2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4
Nature Villa - Room Available 20 20 20 20 20 25 25 25 35 35 35 35
Occupancy Rate
50
%
55
% 60% 80% 80% 60% 70% 85% 87% 65% 67% 85%
Projected Booking - Nature
Villa 900 990
108
0
144
0
144
0
135
0
157
5
191
3
2740.
5
2047.
5
2110.
5
2677.
5
Palm Cottage - Room Available 15 15 15 15 15 15 15 20 20 20 20 20
Occupancy Rate
60
%
65
% 67% 85% 85% 70% 72% 87% 88% 72% 74% 92%
Projected Booking - Palm
Cottage 810 878 905
114
8
114
8 945 972
156
6 1584 1296 1332 1656
Deluxe Suit - Room Available 3 3 3 3 3 3 3 3 5 5 5 5
Occupancy Rate
90
%
75
% 72% 92% 92% 75% 75% 94% 90% 78% 80% 92%
Projected Booking - Deluxe Suit 243 203 194 248 248 203 203 254 405 351 360 414
MANAGE BUDGETS AND FINANCIAL PLANS
Particulars
Qt.
1
Qt.
2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4
Nature Villa - Room Available 20 20 20 20 20 25 25 25 35 35 35 35
Occupancy Rate
50
%
55
% 60% 80% 80% 60% 70% 85% 87% 65% 67% 85%
Projected Booking - Nature
Villa 900 990
108
0
144
0
144
0
135
0
157
5
191
3
2740.
5
2047.
5
2110.
5
2677.
5
Palm Cottage - Room Available 15 15 15 15 15 15 15 20 20 20 20 20
Occupancy Rate
60
%
65
% 67% 85% 85% 70% 72% 87% 88% 72% 74% 92%
Projected Booking - Palm
Cottage 810 878 905
114
8
114
8 945 972
156
6 1584 1296 1332 1656
Deluxe Suit - Room Available 3 3 3 3 3 3 3 3 5 5 5 5
Occupancy Rate
90
%
75
% 72% 92% 92% 75% 75% 94% 90% 78% 80% 92%
Projected Booking - Deluxe Suit 243 203 194 248 248 203 203 254 405 351 360 414
10
MANAGE BUDGETS AND FINANCIAL PLANS
Projected Sales Revenue
PROJECTED SALES REVENUE:-
1st Year 2nd Year 3rd Year
Particulars Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4
Nature Villa - Room
Booking 900 990 1080 1440 1440 1350 1575
1912.
5
2740.
5
2047.
5
2110.
5
2677.
5
Average Room Rent
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$10,0
00
$10,0
00
$10,0
00
$10,0
00
Projected Room Rent -
Nature Villa
$7,65
0,000
$8,41
5,000
$9,18
0,000
$12,2
40,00
0
$12,2
40,00
0
$11,4
75,00
0
$13,3
87,50
0
$16,2
56,25
0
$27,4
05,00
0
$20,4
75,00
0
$21,1
05,00
0
$26,7
75,00
0
Palm Cottage - Room
Booking 810 878 905 1148 1148 945 972 1566 1584 1296 1332 1656
Average Room Rent
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$13,0
00
$13,0
00
$13,0
00
$13,0
00
Projected Room Rent -
Palm Cottage
$9,72
0,000
$10,5
30,00
0
$10,8
54,00
0
$13,7
70,00
0
$13,7
70,00
0
$11,3
40,00
0
$11,6
64,00
0
$18,7
92,00
0
$20,5
92,00
0
$16,8
48,00
0
$17,3
16,00
0
$21,5
28,00
0
Deluxe Suit - Room
Booking 243 203 194 248 248 203 203 254 405 351 360 414
Average Room Rent
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$17,5
00
$17,5
00
$17,5
00
$17,5
00
Projected Room Rent -
Deluxe Suit
$3,64
5,000
$3,03
7,500
$2,91
6,000
$3,72
6,000
$3,72
6,000
$3,03
7,500
$3,03
7,500
$3,80
7,000
$7,08
7,500
$6,14
2,500
$6,30
0,000
$7,24
5,000
Average Guest per Room 2 2 2 2 2 2 2 2 2 2 2 2
Average Fooding &
Drinking Charges per
Guest
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,50
0
$4,50
0
$4,50
0
$4,50
0
Total Revenue from
Fooding & Drinking
$15,6
24,00
0
$16,5
60,00
0
$17,4
31,20
0
$22,6
87,20
0
$22,6
87,20
0
$19,9
80,00
0
$21,9
96,00
0
$29,8
58,40
0
$42,5
65,50
0
$33,2
50,50
0
$34,2
22,50
0
$42,7
27,50
0
MANAGE BUDGETS AND FINANCIAL PLANS
Projected Sales Revenue
PROJECTED SALES REVENUE:-
1st Year 2nd Year 3rd Year
Particulars Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4
Nature Villa - Room
Booking 900 990 1080 1440 1440 1350 1575
1912.
5
2740.
5
2047.
5
2110.
5
2677.
5
Average Room Rent
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$8,50
0
$10,0
00
$10,0
00
$10,0
00
$10,0
00
Projected Room Rent -
Nature Villa
$7,65
0,000
$8,41
5,000
$9,18
0,000
$12,2
40,00
0
$12,2
40,00
0
$11,4
75,00
0
$13,3
87,50
0
$16,2
56,25
0
$27,4
05,00
0
$20,4
75,00
0
$21,1
05,00
0
$26,7
75,00
0
Palm Cottage - Room
Booking 810 878 905 1148 1148 945 972 1566 1584 1296 1332 1656
Average Room Rent
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$12,0
00
$13,0
00
$13,0
00
$13,0
00
$13,0
00
Projected Room Rent -
Palm Cottage
$9,72
0,000
$10,5
30,00
0
$10,8
54,00
0
$13,7
70,00
0
$13,7
70,00
0
$11,3
40,00
0
$11,6
64,00
0
$18,7
92,00
0
$20,5
92,00
0
$16,8
48,00
0
$17,3
16,00
0
$21,5
28,00
0
Deluxe Suit - Room
Booking 243 203 194 248 248 203 203 254 405 351 360 414
Average Room Rent
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$15,0
00
$17,5
00
$17,5
00
$17,5
00
$17,5
00
Projected Room Rent -
Deluxe Suit
$3,64
5,000
$3,03
7,500
$2,91
6,000
$3,72
6,000
$3,72
6,000
$3,03
7,500
$3,03
7,500
$3,80
7,000
$7,08
7,500
$6,14
2,500
$6,30
0,000
$7,24
5,000
Average Guest per Room 2 2 2 2 2 2 2 2 2 2 2 2
Average Fooding &
Drinking Charges per
Guest
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,00
0
$4,50
0
$4,50
0
$4,50
0
$4,50
0
Total Revenue from
Fooding & Drinking
$15,6
24,00
0
$16,5
60,00
0
$17,4
31,20
0
$22,6
87,20
0
$22,6
87,20
0
$19,9
80,00
0
$21,9
96,00
0
$29,8
58,40
0
$42,5
65,50
0
$33,2
50,50
0
$34,2
22,50
0
$42,7
27,50
0
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11
MANAGE BUDGETS AND FINANCIAL PLANS
Projected Expenses
PROJECTED EXPENSES:-
1st Year 2nd Year 3rd Year
Particulars Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4
One-Time Start-Up
Cost:
Land
$2,500
,000
Building &
Improvement
$5,000
,000
Furniture & Fittings
$1,500
,000
Computer, Electrical
Equipment & Other
Accessories
$3,000
,000
Kitchen Appliances,
Cutleries &
Crookeries
$1,250
,000
Motor Vehicle
$1,000
,000
Land Registration
$65,00
0
Business Registration
$125,0
00
License Fees
$50,00
0
Deposit for Electricity
$72,00
0
Deposit for
Telephone & Internet
$35,00
0
Recruitment Cost
$125,0
00
Share Issuance Cost
$30,00
0
Other Miscellaneous
Expenses
$200,0
00
Fixed Operating
Expenses:
Depreciation on
Building &
Improvement
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
MANAGE BUDGETS AND FINANCIAL PLANS
Projected Expenses
PROJECTED EXPENSES:-
1st Year 2nd Year 3rd Year
Particulars Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4 Qt.1 Qt.2 Qt.3 Qt.4
One-Time Start-Up
Cost:
Land
$2,500
,000
Building &
Improvement
$5,000
,000
Furniture & Fittings
$1,500
,000
Computer, Electrical
Equipment & Other
Accessories
$3,000
,000
Kitchen Appliances,
Cutleries &
Crookeries
$1,250
,000
Motor Vehicle
$1,000
,000
Land Registration
$65,00
0
Business Registration
$125,0
00
License Fees
$50,00
0
Deposit for Electricity
$72,00
0
Deposit for
Telephone & Internet
$35,00
0
Recruitment Cost
$125,0
00
Share Issuance Cost
$30,00
0
Other Miscellaneous
Expenses
$200,0
00
Fixed Operating
Expenses:
Depreciation on
Building &
Improvement
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
12
MANAGE BUDGETS AND FINANCIAL PLANS
Depreciation on
Furniture & Fittings
$37,50
0
$37,50
0
$37,50
0
$37,50
0
$33,75
0
$33,75
0
$33,75
0
$33,75
0
$30,37
5
$30,37
5
$30,37
5
$30,37
5
Depreciation on
Computer, Electronic
Equipment & Other
Devices
$225,0
00
$225,0
00
$225,0
00
$225,0
00
$157,5
00
$157,5
00
$157,5
00
$157,5
00
$110,2
50
$110,2
50
$110,2
50
$110,2
50
Depreciation on
Kitchen Appliances,
Cutleries & Cookeries
$125,0
00
$125,0
00
$125,0
00
$125,0
00
$75,00
0
$75,00
0
$75,00
0
$75,00
0
$45,00
0
$45,00
0
$45,00
0
$45,00
0
Depreciation on
Motor Vehicles
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
Wages & Salary to
Permanent Staffs
$450,0
00
$1,000
,000
$1,000
,000
$1,000
,000
$1,100
,000
$1,100
,000
$1,100
,000
$1,100
,000
$1,200
,000
$1,200
,000
$1,200
,000
$1,200
,000
Membership to Hotel
Association $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,500 $2,500 $2,500 $2,500
Insurance $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $6,000 $6,000 $6,000 $6,000
Advertisement &
Promotion
$50,00
0
$125,0
00
$50,00
0
$50,00
0
$62,50
0
$62,50
0
$62,50
0
$62,50
0
$68,75
0
$68,75
0
$68,75
0
$68,75
0
Variable Operating
Expenses:
Cost of Fooding &
Drinking
$5,468
,400
$5,796
,000
$6,100
,920
$7,940
,520
$7,940
,520
$6,993
,000
$7,698
,600
$10,45
0,440
$14,89
7,925
$11,63
7,675
$11,97
7,875
$14,95
4,625
Wages to Temporary
Staffs
$2,613
,150
$2,755
,125
$2,890
,620
$3,755
,520
$3,755
,520
$3,290
,625
$3,604
,050
$4,928
,603
$7,010
,775
$5,498
,325
$5,658
,300
$7,050
,150
Supplies Expenses
$4,324
,050
$4,539
,375
$4,749
,840
$6,161
,940
$6,161
,940
$5,376
,375
$5,863
,050
$8,067
,668
$11,45
5,088
$9,013
,613
$9,274
,838
$11,53
6,763
Electricity
$4,984
,200
$5,224
,500
$5,461
,560
$7,081
,560
$7,081
,560
$6,169
,500
$6,717
,600
$9,263
,970
$13,14
5,175
$10,35
5,625
$10,65
5,325
$13,24
5,975
Power & Fuel
$2,868
,975
$3,033
,563
$3,188
,430
$4,146
,480
$4,146
,480
$3,643
,313
$4,001
,625
$5,450
,141
$7,761
,938
$6,074
,213
$6,251
,400
$7,797
,825
Telephone & Internet
$498,4
20
$522,4
50
$546,1
56
$708,1
56
$708,1
56
$616,9
50
$671,7
60
$926,3
97
$1,314
,518
$1,035
,563
$1,065
,533
$1,324
,598
Cost of Tour
$317,3
63
$336,3
75
$354,0
71
$460,8
34
$553,0
01
$487,0
13
$536,1
53
$727,7
99
$1,106
,703
$864,5
13
$889,7
85
$1,110
,915
Cleaning Charges
$2,882
,700
$3,026
,250
$3,166
,560
$4,107
,960
$4,107
,960
$3,584
,250
$3,908
,700
$5,378
,445
$7,636
,725
$6,009
,075
$6,183
,225
$7,691
,175
Maintenance Charges
$4,324
,050
$4,539
,375
$4,749
,840
$6,161
,940
$6,161
,940
$5,376
,375
$5,863
,050
$8,067
,668
$11,45
5,088
$9,013
,613
$9,274
,838
$11,53
6,763
Special Discount on
Corporate Booking
$525,3
75
$549,5
63
$573,7
50
$743,4
00
$743,4
00
$646,3
13
$702,2
25
$971,3
81
$1,377
,113
$1,086
,638
$1,118
,025
$1,388
,700
Commission to Travel
Agencies
$210,1
50
$219,8
25
$229,5
00
$297,3
60
$297,3
60
$258,5
25
$280,8
90
$388,5
53
$550,8
45
$434,6
55
$447,2
10
$555,4
80
TOTAL EXPENSES
$44,91
5,833
$32,11
4,400
$33,50
8,247
$43,06
2,670
$43,14
6,087
$37,93
0,488
$41,33
5,953
$56,10
9,313
$79,22
7,266
$62,53
8,881
$64,31
1,728
$79,70
8,343
MANAGE BUDGETS AND FINANCIAL PLANS
Depreciation on
Furniture & Fittings
$37,50
0
$37,50
0
$37,50
0
$37,50
0
$33,75
0
$33,75
0
$33,75
0
$33,75
0
$30,37
5
$30,37
5
$30,37
5
$30,37
5
Depreciation on
Computer, Electronic
Equipment & Other
Devices
$225,0
00
$225,0
00
$225,0
00
$225,0
00
$157,5
00
$157,5
00
$157,5
00
$157,5
00
$110,2
50
$110,2
50
$110,2
50
$110,2
50
Depreciation on
Kitchen Appliances,
Cutleries & Cookeries
$125,0
00
$125,0
00
$125,0
00
$125,0
00
$75,00
0
$75,00
0
$75,00
0
$75,00
0
$45,00
0
$45,00
0
$45,00
0
$45,00
0
Depreciation on
Motor Vehicles
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
Wages & Salary to
Permanent Staffs
$450,0
00
$1,000
,000
$1,000
,000
$1,000
,000
$1,100
,000
$1,100
,000
$1,100
,000
$1,100
,000
$1,200
,000
$1,200
,000
$1,200
,000
$1,200
,000
Membership to Hotel
Association $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,500 $2,500 $2,500 $2,500
Insurance $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $6,000 $6,000 $6,000 $6,000
Advertisement &
Promotion
$50,00
0
$125,0
00
$50,00
0
$50,00
0
$62,50
0
$62,50
0
$62,50
0
$62,50
0
$68,75
0
$68,75
0
$68,75
0
$68,75
0
Variable Operating
Expenses:
Cost of Fooding &
Drinking
$5,468
,400
$5,796
,000
$6,100
,920
$7,940
,520
$7,940
,520
$6,993
,000
$7,698
,600
$10,45
0,440
$14,89
7,925
$11,63
7,675
$11,97
7,875
$14,95
4,625
Wages to Temporary
Staffs
$2,613
,150
$2,755
,125
$2,890
,620
$3,755
,520
$3,755
,520
$3,290
,625
$3,604
,050
$4,928
,603
$7,010
,775
$5,498
,325
$5,658
,300
$7,050
,150
Supplies Expenses
$4,324
,050
$4,539
,375
$4,749
,840
$6,161
,940
$6,161
,940
$5,376
,375
$5,863
,050
$8,067
,668
$11,45
5,088
$9,013
,613
$9,274
,838
$11,53
6,763
Electricity
$4,984
,200
$5,224
,500
$5,461
,560
$7,081
,560
$7,081
,560
$6,169
,500
$6,717
,600
$9,263
,970
$13,14
5,175
$10,35
5,625
$10,65
5,325
$13,24
5,975
Power & Fuel
$2,868
,975
$3,033
,563
$3,188
,430
$4,146
,480
$4,146
,480
$3,643
,313
$4,001
,625
$5,450
,141
$7,761
,938
$6,074
,213
$6,251
,400
$7,797
,825
Telephone & Internet
$498,4
20
$522,4
50
$546,1
56
$708,1
56
$708,1
56
$616,9
50
$671,7
60
$926,3
97
$1,314
,518
$1,035
,563
$1,065
,533
$1,324
,598
Cost of Tour
$317,3
63
$336,3
75
$354,0
71
$460,8
34
$553,0
01
$487,0
13
$536,1
53
$727,7
99
$1,106
,703
$864,5
13
$889,7
85
$1,110
,915
Cleaning Charges
$2,882
,700
$3,026
,250
$3,166
,560
$4,107
,960
$4,107
,960
$3,584
,250
$3,908
,700
$5,378
,445
$7,636
,725
$6,009
,075
$6,183
,225
$7,691
,175
Maintenance Charges
$4,324
,050
$4,539
,375
$4,749
,840
$6,161
,940
$6,161
,940
$5,376
,375
$5,863
,050
$8,067
,668
$11,45
5,088
$9,013
,613
$9,274
,838
$11,53
6,763
Special Discount on
Corporate Booking
$525,3
75
$549,5
63
$573,7
50
$743,4
00
$743,4
00
$646,3
13
$702,2
25
$971,3
81
$1,377
,113
$1,086
,638
$1,118
,025
$1,388
,700
Commission to Travel
Agencies
$210,1
50
$219,8
25
$229,5
00
$297,3
60
$297,3
60
$258,5
25
$280,8
90
$388,5
53
$550,8
45
$434,6
55
$447,2
10
$555,4
80
TOTAL EXPENSES
$44,91
5,833
$32,11
4,400
$33,50
8,247
$43,06
2,670
$43,14
6,087
$37,93
0,488
$41,33
5,953
$56,10
9,313
$79,22
7,266
$62,53
8,881
$64,31
1,728
$79,70
8,343
13
MANAGE BUDGETS AND FINANCIAL PLANS
Projected Income Statement
INCOME STATEMENT:
Particulars Year 1 Year 2 Year 3
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
REVENUE:
Room Rent $21,01
5,000
$21,98
2,500
$22,95
0,000
$29,73
6,000
$29,73
6,000
$25,85
2,500
$28,08
9,000
$38,85
5,250
$55,08
4,500
$43,46
5,500
$44,72
1,000
$55,54
8,000
Less: Discount
on Sales
($525,
375)
($549,
563)
($573,
750)
($743,
400)
($743,
400)
($646,
313)
($702,
225)
($971,
381)
($1,37
7,113)
($1,08
6,638)
($1,11
8,025)
($1,38
8,700)
Revenue from
Fooding &
Drinking
$15,62
4,000
$16,56
0,000
$17,43
1,200
$22,68
7,200
$22,68
7,200
$19,98
0,000
$21,99
6,000
$29,85
8,400
$42,56
5,500
$33,25
0,500
$34,22
2,500
$42,72
7,500
Revenue from
Pre-Arranged
Tours
$488,2
50
$517,5
00
$544,7
25
$708,9
75
$850,7
70
$749,2
50
$824,8
50
$1,119
,690
$1,702
,620
$1,330
,020
$1,368
,900
$1,709
,100
Projected Net
Sales Revenue
$36,60
1,875
$38,51
0,438
$40,35
2,175
$52,38
8,775
$52,53
0,570
$45,93
5,438
$50,20
7,625
$68,86
1,959
$97,97
5,508
$76,95
9,383
$79,19
4,375
$98,59
5,900
Operating
Expenses:
Cost of Fooding
& Drinking
($5,46
8,400)
($5,79
6,000)
($6,10
0,920)
($7,94
0,520)
($7,94
0,520)
($6,99
3,000)
($7,69
8,600)
($10,4
50,440
)
($14,8
97,925
)
($11,6
37,675
)
($11,9
77,875
)
($14,9
54,625
)
Wages &
Salaries
($3,06
3,150)
($3,75
5,125)
($3,89
0,620)
($4,75
5,520)
($4,85
5,520)
($4,39
0,625)
($4,70
4,050)
($6,02
8,603)
($8,21
0,775)
($6,69
8,325)
($6,85
8,300)
($8,25
0,150)
Supplies
Expenses
($4,32
4,050)
($4,53
9,375)
($4,74
9,840)
($6,16
1,940)
($6,16
1,940)
($5,37
6,375)
($5,86
3,050)
($8,06
7,668)
($11,4
55,088
)
($9,01
3,613)
($9,27
4,838)
($11,5
36,763
)
Electricity ($4,98
4,200)
($5,22
4,500)
($5,46
1,560)
($7,08
1,560)
($7,08
1,560)
($6,16
9,500)
($6,71
7,600)
($9,26
3,970)
($13,1
45,175
)
($10,3
55,625
)
($10,6
55,325
)
($13,2
45,975
)
Power & Fuel ($2,86
8,975)
($3,03
3,563)
($3,18
8,430)
($4,14
6,480)
($4,14
6,480)
($3,64
3,313)
($4,00
1,625)
($5,45
0,141)
($7,76
1,938)
($6,07
4,213)
($6,25
1,400)
($7,79
7,825)
Telephone &
Internet
($498,
420)
($522,
450)
($546,
156)
($708,
156)
($708,
156)
($616,
950)
($671,
760)
($926,
397)
($1,31
4,518)
($1,03
5,563)
($1,06
5,533)
($1,32
4,598)
Cost of Tour ($317,
363)
($336,
375)
($354,
071)
($460,
834)
($553,
001)
($487,
013)
($536,
153)
($727,
799)
($1,10
6,703)
($864,
513)
($889,
785)
($1,11
0,915)
Cleaning
Charges
($2,88
2,700)
($3,02
6,250)
($3,16
6,560)
($4,10
7,960)
($4,10
7,960)
($3,58
4,250)
($3,90
8,700)
($5,37
8,445)
($7,63
6,725)
($6,00
9,075)
($6,18
3,225)
($7,69
1,175)
MANAGE BUDGETS AND FINANCIAL PLANS
Projected Income Statement
INCOME STATEMENT:
Particulars Year 1 Year 2 Year 3
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
REVENUE:
Room Rent $21,01
5,000
$21,98
2,500
$22,95
0,000
$29,73
6,000
$29,73
6,000
$25,85
2,500
$28,08
9,000
$38,85
5,250
$55,08
4,500
$43,46
5,500
$44,72
1,000
$55,54
8,000
Less: Discount
on Sales
($525,
375)
($549,
563)
($573,
750)
($743,
400)
($743,
400)
($646,
313)
($702,
225)
($971,
381)
($1,37
7,113)
($1,08
6,638)
($1,11
8,025)
($1,38
8,700)
Revenue from
Fooding &
Drinking
$15,62
4,000
$16,56
0,000
$17,43
1,200
$22,68
7,200
$22,68
7,200
$19,98
0,000
$21,99
6,000
$29,85
8,400
$42,56
5,500
$33,25
0,500
$34,22
2,500
$42,72
7,500
Revenue from
Pre-Arranged
Tours
$488,2
50
$517,5
00
$544,7
25
$708,9
75
$850,7
70
$749,2
50
$824,8
50
$1,119
,690
$1,702
,620
$1,330
,020
$1,368
,900
$1,709
,100
Projected Net
Sales Revenue
$36,60
1,875
$38,51
0,438
$40,35
2,175
$52,38
8,775
$52,53
0,570
$45,93
5,438
$50,20
7,625
$68,86
1,959
$97,97
5,508
$76,95
9,383
$79,19
4,375
$98,59
5,900
Operating
Expenses:
Cost of Fooding
& Drinking
($5,46
8,400)
($5,79
6,000)
($6,10
0,920)
($7,94
0,520)
($7,94
0,520)
($6,99
3,000)
($7,69
8,600)
($10,4
50,440
)
($14,8
97,925
)
($11,6
37,675
)
($11,9
77,875
)
($14,9
54,625
)
Wages &
Salaries
($3,06
3,150)
($3,75
5,125)
($3,89
0,620)
($4,75
5,520)
($4,85
5,520)
($4,39
0,625)
($4,70
4,050)
($6,02
8,603)
($8,21
0,775)
($6,69
8,325)
($6,85
8,300)
($8,25
0,150)
Supplies
Expenses
($4,32
4,050)
($4,53
9,375)
($4,74
9,840)
($6,16
1,940)
($6,16
1,940)
($5,37
6,375)
($5,86
3,050)
($8,06
7,668)
($11,4
55,088
)
($9,01
3,613)
($9,27
4,838)
($11,5
36,763
)
Electricity ($4,98
4,200)
($5,22
4,500)
($5,46
1,560)
($7,08
1,560)
($7,08
1,560)
($6,16
9,500)
($6,71
7,600)
($9,26
3,970)
($13,1
45,175
)
($10,3
55,625
)
($10,6
55,325
)
($13,2
45,975
)
Power & Fuel ($2,86
8,975)
($3,03
3,563)
($3,18
8,430)
($4,14
6,480)
($4,14
6,480)
($3,64
3,313)
($4,00
1,625)
($5,45
0,141)
($7,76
1,938)
($6,07
4,213)
($6,25
1,400)
($7,79
7,825)
Telephone &
Internet
($498,
420)
($522,
450)
($546,
156)
($708,
156)
($708,
156)
($616,
950)
($671,
760)
($926,
397)
($1,31
4,518)
($1,03
5,563)
($1,06
5,533)
($1,32
4,598)
Cost of Tour ($317,
363)
($336,
375)
($354,
071)
($460,
834)
($553,
001)
($487,
013)
($536,
153)
($727,
799)
($1,10
6,703)
($864,
513)
($889,
785)
($1,11
0,915)
Cleaning
Charges
($2,88
2,700)
($3,02
6,250)
($3,16
6,560)
($4,10
7,960)
($4,10
7,960)
($3,58
4,250)
($3,90
8,700)
($5,37
8,445)
($7,63
6,725)
($6,00
9,075)
($6,18
3,225)
($7,69
1,175)
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14
MANAGE BUDGETS AND FINANCIAL PLANS
Maintenance
Charges
($4,32
4,050)
($4,53
9,375)
($4,74
9,840)
($6,16
1,940)
($6,16
1,940)
($5,37
6,375)
($5,86
3,050)
($8,06
7,668)
($11,4
55,088
)
($9,01
3,613)
($9,27
4,838)
($11,5
36,763
)
Depreciation on
Building &
Improvement
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
Depreciation on
Furniture &
Fittings
($37,5
00)
($37,5
00)
($37,5
00)
($37,5
00)
($33,7
50)
($33,7
50)
($33,7
50)
($33,7
50)
($30,3
75)
($30,3
75)
($30,3
75)
($30,3
75)
Depreciation on
Computer,
Electronic
Equipment &
Other Devices
($225,
000)
($225,
000)
($225,
000)
($225,
000)
($157,
500)
($157,
500)
($157,
500)
($157,
500)
($110,
250)
($110,
250)
($110,
250)
($110,
250)
Depreciation on
Kitchen
Appliances,
Cutleries &
Cookeries
($125,
000)
($125,
000)
($125,
000)
($125,
000)
($75,0
00)
($75,0
00)
($75,0
00)
($75,0
00)
($45,0
00)
($45,0
00)
($45,0
00)
($45,0
00)
Depreciation on
Motor Vehicles
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
Membership to
Hotel
Association
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,50
0)
($2,50
0)
($2,50
0)
($2,50
0)
Insurance ($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($6,00
0)
($6,00
0)
($6,00
0)
($6,00
0)
Advertisement &
Promotion
($50,0
00)
($125,
000)
($50,0
00)
($50,0
00)
($62,5
00)
($62,5
00)
($62,5
00)
($62,5
00)
($68,7
50)
($68,7
50)
($68,7
50)
($68,7
50)
Commission to
Travel Agencies
($210,
150)
($219,
825)
($229,
500)
($297,
360)
($297,
360)
($258,
525)
($280,
890)
($388,
553)
($550,
845)
($434,
655)
($447,
210)
($555,
480)
Total Operating
Expenses
($29,4
38,458
)
($31,5
64,838
)
($32,9
34,497
)
($42,3
19,270
)
($42,4
02,687
)
($37,2
84,175
)
($40,6
33,728
)
($55,1
37,932
)
($77,8
50,153
)
($61,4
52,243
)
($63,1
93,703
)
($78,3
19,643
)
Net Operating
Profit
$7,163
,418
$6,945
,600
$7,417
,678
$10,06
9,505
$10,12
7,884
$8,651
,263
$9,573
,898
$13,72
4,027
$20,12
5,355
$15,50
7,140
$16,00
0,673
$20,27
6,258
Finance Cost:
Interest on Loan ($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
Total Finance
Costs
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
Net Profit $6,968 $6,750 $7,222 $9,874 $9,932 $8,456 $9,378 $13,52 $19,93 $15,31 $15,80 $20,08
MANAGE BUDGETS AND FINANCIAL PLANS
Maintenance
Charges
($4,32
4,050)
($4,53
9,375)
($4,74
9,840)
($6,16
1,940)
($6,16
1,940)
($5,37
6,375)
($5,86
3,050)
($8,06
7,668)
($11,4
55,088
)
($9,01
3,613)
($9,27
4,838)
($11,5
36,763
)
Depreciation on
Building &
Improvement
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
($35,0
00)
Depreciation on
Furniture &
Fittings
($37,5
00)
($37,5
00)
($37,5
00)
($37,5
00)
($33,7
50)
($33,7
50)
($33,7
50)
($33,7
50)
($30,3
75)
($30,3
75)
($30,3
75)
($30,3
75)
Depreciation on
Computer,
Electronic
Equipment &
Other Devices
($225,
000)
($225,
000)
($225,
000)
($225,
000)
($157,
500)
($157,
500)
($157,
500)
($157,
500)
($110,
250)
($110,
250)
($110,
250)
($110,
250)
Depreciation on
Kitchen
Appliances,
Cutleries &
Cookeries
($125,
000)
($125,
000)
($125,
000)
($125,
000)
($75,0
00)
($75,0
00)
($75,0
00)
($75,0
00)
($45,0
00)
($45,0
00)
($45,0
00)
($45,0
00)
Depreciation on
Motor Vehicles
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
($17,5
00)
Membership to
Hotel
Association
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,00
0)
($2,50
0)
($2,50
0)
($2,50
0)
($2,50
0)
Insurance ($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($5,00
0)
($6,00
0)
($6,00
0)
($6,00
0)
($6,00
0)
Advertisement &
Promotion
($50,0
00)
($125,
000)
($50,0
00)
($50,0
00)
($62,5
00)
($62,5
00)
($62,5
00)
($62,5
00)
($68,7
50)
($68,7
50)
($68,7
50)
($68,7
50)
Commission to
Travel Agencies
($210,
150)
($219,
825)
($229,
500)
($297,
360)
($297,
360)
($258,
525)
($280,
890)
($388,
553)
($550,
845)
($434,
655)
($447,
210)
($555,
480)
Total Operating
Expenses
($29,4
38,458
)
($31,5
64,838
)
($32,9
34,497
)
($42,3
19,270
)
($42,4
02,687
)
($37,2
84,175
)
($40,6
33,728
)
($55,1
37,932
)
($77,8
50,153
)
($61,4
52,243
)
($63,1
93,703
)
($78,3
19,643
)
Net Operating
Profit
$7,163
,418
$6,945
,600
$7,417
,678
$10,06
9,505
$10,12
7,884
$8,651
,263
$9,573
,898
$13,72
4,027
$20,12
5,355
$15,50
7,140
$16,00
0,673
$20,27
6,258
Finance Cost:
Interest on Loan ($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
Total Finance
Costs
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
Net Profit $6,968 $6,750 $7,222 $9,874 $9,932 $8,456 $9,378 $13,52 $19,93 $15,31 $15,80 $20,08
15
MANAGE BUDGETS AND FINANCIAL PLANS
before Tax ,428 ,610 ,688 ,515 ,894 ,273 ,908 9,037 0,365 2,150 5,683 1,268
Income Tax
Expenses
($2,09
0,528)
($2,02
5,183)
($2,16
6,806)
($2,96
2,355)
($2,97
9,868)
($2,53
6,882)
($2,81
3,672)
($4,05
8,711)
($5,97
9,109)
($4,59
3,645)
($4,74
1,705)
($6,02
4,380)
Net Profit for
the period
$4,877
,899
$4,725
,427
$5,055
,881
$6,912
,161
$6,953
,025
$5,919
,391
$6,565
,235
$9,470
,326
$13,95
1,255
$10,71
8,505
$11,06
3,978
$14,05
6,887
Projected Balance Sheet
BALANCE SHEET:
Particulars Year 1 Year 2 Year 3
Quar
ter 1
Quar
ter 2
Quar
ter 3
Quar
ter 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Current Assets:
Cash at Bank $16,9
21,16
8
$24,6
11,52
1
$38,6
90,83
1
$51,4
71,28
9
$46,6
01,52
0
$56,7
75,40
3
$73,6
25,88
6
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
$120,5
01,630
Total Current
Assets
$16,9
21,16
8
$24,6
11,52
1
$38,6
90,83
1
$51,4
71,28
9
$46,6
01,52
0
$56,7
75,40
3
$73,6
25,88
6
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
$120,5
01,630
Non-Current
Assets:
Land $2,50
0,000
$2,50
0,000
$2,50
0,000
$2,50
0,000
$2,50
0,000
$2,50
0,000
$2,50
0,000
$2,500
,000
$2,500
,000
$2,500
,000
$2,500
,000
$2,500
,000
Building &
Improvement
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,000
,000
$5,000
,000
$5,000
,000
$5,000
,000
$42,50
0,000
Accm. Dep. ($35,
000)
($70,
000)
($105
,000)
($140
,000)
($175,
000)
($210,
000)
($245,
000)
($280,
000)
($315,
000)
($350,
000)
($385,
000)
($420,
000)
Furniture &
Fittings
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,500
,000
$1,500
,000
$1,500
,000
$1,500
,000
$1,500
,000
Accm. Dep.- ($37,
500)
($75,
000)
($112
,500)
($150
,000)
($183,
750)
($217,
500)
($251,
250)
($285,
000)
($315,
375)
($345,
750)
($376,
125)
($406,
500)
Computer,
Electronic
Equipment & Other
Devices
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,000
,000
$3,000
,000
$3,000
,000
$3,000
,000
$3,000
,000
Accm. Dep.- ($225
,000)
($450
,000)
($675
,000)
($900
,000)
($1,05
7,500)
($1,21
5,000)
($1,37
2,500)
($1,53
0,000)
($1,64
0,250)
($1,75
0,500)
($1,86
0,750)
($1,97
1,000)
Kitchen
Appliances,
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,250
,000
$1,250
,000
$1,250
,000
$1,250
,000
$1,250
,000
MANAGE BUDGETS AND FINANCIAL PLANS
before Tax ,428 ,610 ,688 ,515 ,894 ,273 ,908 9,037 0,365 2,150 5,683 1,268
Income Tax
Expenses
($2,09
0,528)
($2,02
5,183)
($2,16
6,806)
($2,96
2,355)
($2,97
9,868)
($2,53
6,882)
($2,81
3,672)
($4,05
8,711)
($5,97
9,109)
($4,59
3,645)
($4,74
1,705)
($6,02
4,380)
Net Profit for
the period
$4,877
,899
$4,725
,427
$5,055
,881
$6,912
,161
$6,953
,025
$5,919
,391
$6,565
,235
$9,470
,326
$13,95
1,255
$10,71
8,505
$11,06
3,978
$14,05
6,887
Projected Balance Sheet
BALANCE SHEET:
Particulars Year 1 Year 2 Year 3
Quar
ter 1
Quar
ter 2
Quar
ter 3
Quar
ter 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Current Assets:
Cash at Bank $16,9
21,16
8
$24,6
11,52
1
$38,6
90,83
1
$51,4
71,28
9
$46,6
01,52
0
$56,7
75,40
3
$73,6
25,88
6
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
$120,5
01,630
Total Current
Assets
$16,9
21,16
8
$24,6
11,52
1
$38,6
90,83
1
$51,4
71,28
9
$46,6
01,52
0
$56,7
75,40
3
$73,6
25,88
6
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
$120,5
01,630
Non-Current
Assets:
Land $2,50
0,000
$2,50
0,000
$2,50
0,000
$2,50
0,000
$2,50
0,000
$2,50
0,000
$2,50
0,000
$2,500
,000
$2,500
,000
$2,500
,000
$2,500
,000
$2,500
,000
Building &
Improvement
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,00
0,000
$5,000
,000
$5,000
,000
$5,000
,000
$5,000
,000
$42,50
0,000
Accm. Dep. ($35,
000)
($70,
000)
($105
,000)
($140
,000)
($175,
000)
($210,
000)
($245,
000)
($280,
000)
($315,
000)
($350,
000)
($385,
000)
($420,
000)
Furniture &
Fittings
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,50
0,000
$1,500
,000
$1,500
,000
$1,500
,000
$1,500
,000
$1,500
,000
Accm. Dep.- ($37,
500)
($75,
000)
($112
,500)
($150
,000)
($183,
750)
($217,
500)
($251,
250)
($285,
000)
($315,
375)
($345,
750)
($376,
125)
($406,
500)
Computer,
Electronic
Equipment & Other
Devices
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,00
0,000
$3,000
,000
$3,000
,000
$3,000
,000
$3,000
,000
$3,000
,000
Accm. Dep.- ($225
,000)
($450
,000)
($675
,000)
($900
,000)
($1,05
7,500)
($1,21
5,000)
($1,37
2,500)
($1,53
0,000)
($1,64
0,250)
($1,75
0,500)
($1,86
0,750)
($1,97
1,000)
Kitchen
Appliances,
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,25
0,000
$1,250
,000
$1,250
,000
$1,250
,000
$1,250
,000
$1,250
,000
16
MANAGE BUDGETS AND FINANCIAL PLANS
rookeries &
Cutleries
Accm. Dep. ($125
,000)
($250
,000)
($375
,000)
($500
,000)
($575,
000)
($650,
000)
($725,
000)
($800,
000)
($845,
000)
($890,
000)
($935,
000)
($980,
000)
Motor Vehicle $1,00
0,000
$1,00
0,000
$1,00
0,000
$1,00
0,000
$1,00
0,000
$1,00
0,000
$1,00
0,000
$1,000
,000
$1,000
,000
$1,000
,000
$1,000
,000
$1,000
,000
Accm. Dep. ($17,
500)
($35,
000)
($52,
500)
($70,
000)
($87,5
00)
($105,
000)
($122,
500)
($140,
000)
($157,
500)
($175,
000)
($192,
500)
($210,
000)
Establishment cost $702,
000
$702,
000
$702,
000
$702,
000
$702,
000
$702,
000
$702,
000
$702,0
00
$702,0
00
$702,0
00
$702,0
00
$702,0
00
Total Non-
Current Assets
$14,5
12,00
0
$14,0
72,00
0
$13,6
32,00
0
$13,1
92,00
0
$12,8
73,25
0
$12,5
54,50
0
$12,2
35,75
0
$11,91
7,000
$11,67
8,875
$11,44
0,750
$11,20
2,625
$48,46
4,500
TOTAL ASSETS $31,4
33,16
8
$38,6
83,52
1
$52,3
22,83
1
$64,6
63,28
9
$59,4
74,77
0
$69,3
29,90
3
$85,8
61,63
6
$103,8
16,874
$106,7
54,220
$123,0
65,010
$151,1
49,342
$168,9
66,130
Current
Liabilities:
Accounts Payable $3,26
4,150
$3,44
5,125
$3,61
6,920
$4,70
0,820
$4,70
0,820
$4,12
3,125
$4,52
0,550
$6,172
,703
$8,784
,338
$6,883
,763
$7,084
,238
$8,830
,463
Income Tax
Payable
$2,09
0,528
$4,11
5,711
$6,28
2,518
$9,24
4,872
$2,97
9,868
$5,51
6,750
$8,33
0,422
$12,38
9,133
$5,979
,109
$10,57
2,754
$15,31
4,459
$21,33
8,839
Accrued Expenses:
Salary to Staff $1,02
1,050
$1,25
1,708
$1,29
6,873
$1,58
5,173
$1,61
8,507
$1,46
3,542
$1,56
8,017
$2,009
,534
$2,736
,925
$2,232
,775
$2,286
,100
$2,750
,050
Electricity, Internet
& Other Resources
$1,82
7,540
$1,91
5,650
$2,00
2,572
$2,59
6,572
$2,59
6,572
$2,26
2,150
$2,46
3,120
$3,396
,789
$4,819
,898
$3,797
,063
$3,906
,953
$4,856
,858
Total Current
Liabilities
$8,20
3,268
$10,7
28,19
5
$13,1
98,88
3
$18,1
27,43
7
$11,8
95,76
7
$13,3
65,56
6
$16,8
82,10
9
$23,96
8,159
$22,32
0,269
$23,48
6,354
$28,59
1,749
$37,77
6,209
Non-Current
Liabilities:
Loan from Bank $9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$2,752
,800
Total Non-
Current
Liabilities
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$2,752
,800
TOTAL
LIABILITIES
$17,3
79,26
8
$19,9
04,19
5
$22,3
74,88
3
$27,3
03,43
7
$21,0
71,76
7
$22,5
41,56
6
$26,0
58,10
9
$33,14
4,159
$31,49
6,269
$32,66
2,354
$37,76
7,749
$40,52
9,009
MANAGE BUDGETS AND FINANCIAL PLANS
rookeries &
Cutleries
Accm. Dep. ($125
,000)
($250
,000)
($375
,000)
($500
,000)
($575,
000)
($650,
000)
($725,
000)
($800,
000)
($845,
000)
($890,
000)
($935,
000)
($980,
000)
Motor Vehicle $1,00
0,000
$1,00
0,000
$1,00
0,000
$1,00
0,000
$1,00
0,000
$1,00
0,000
$1,00
0,000
$1,000
,000
$1,000
,000
$1,000
,000
$1,000
,000
$1,000
,000
Accm. Dep. ($17,
500)
($35,
000)
($52,
500)
($70,
000)
($87,5
00)
($105,
000)
($122,
500)
($140,
000)
($157,
500)
($175,
000)
($192,
500)
($210,
000)
Establishment cost $702,
000
$702,
000
$702,
000
$702,
000
$702,
000
$702,
000
$702,
000
$702,0
00
$702,0
00
$702,0
00
$702,0
00
$702,0
00
Total Non-
Current Assets
$14,5
12,00
0
$14,0
72,00
0
$13,6
32,00
0
$13,1
92,00
0
$12,8
73,25
0
$12,5
54,50
0
$12,2
35,75
0
$11,91
7,000
$11,67
8,875
$11,44
0,750
$11,20
2,625
$48,46
4,500
TOTAL ASSETS $31,4
33,16
8
$38,6
83,52
1
$52,3
22,83
1
$64,6
63,28
9
$59,4
74,77
0
$69,3
29,90
3
$85,8
61,63
6
$103,8
16,874
$106,7
54,220
$123,0
65,010
$151,1
49,342
$168,9
66,130
Current
Liabilities:
Accounts Payable $3,26
4,150
$3,44
5,125
$3,61
6,920
$4,70
0,820
$4,70
0,820
$4,12
3,125
$4,52
0,550
$6,172
,703
$8,784
,338
$6,883
,763
$7,084
,238
$8,830
,463
Income Tax
Payable
$2,09
0,528
$4,11
5,711
$6,28
2,518
$9,24
4,872
$2,97
9,868
$5,51
6,750
$8,33
0,422
$12,38
9,133
$5,979
,109
$10,57
2,754
$15,31
4,459
$21,33
8,839
Accrued Expenses:
Salary to Staff $1,02
1,050
$1,25
1,708
$1,29
6,873
$1,58
5,173
$1,61
8,507
$1,46
3,542
$1,56
8,017
$2,009
,534
$2,736
,925
$2,232
,775
$2,286
,100
$2,750
,050
Electricity, Internet
& Other Resources
$1,82
7,540
$1,91
5,650
$2,00
2,572
$2,59
6,572
$2,59
6,572
$2,26
2,150
$2,46
3,120
$3,396
,789
$4,819
,898
$3,797
,063
$3,906
,953
$4,856
,858
Total Current
Liabilities
$8,20
3,268
$10,7
28,19
5
$13,1
98,88
3
$18,1
27,43
7
$11,8
95,76
7
$13,3
65,56
6
$16,8
82,10
9
$23,96
8,159
$22,32
0,269
$23,48
6,354
$28,59
1,749
$37,77
6,209
Non-Current
Liabilities:
Loan from Bank $9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$2,752
,800
Total Non-
Current
Liabilities
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$2,752
,800
TOTAL
LIABILITIES
$17,3
79,26
8
$19,9
04,19
5
$22,3
74,88
3
$27,3
03,43
7
$21,0
71,76
7
$22,5
41,56
6
$26,0
58,10
9
$33,14
4,159
$31,49
6,269
$32,66
2,354
$37,76
7,749
$40,52
9,009
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17
MANAGE BUDGETS AND FINANCIAL PLANS
Equity:
Equity Capital $9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
General Reserve $6,11
2,740
$6,61
2,483
$13,0
29,10
5
$15,4
95,04
9
$21,9
45,00
4
$23,34
3,865
$30,49
6,691
$34,92
2,891
$46,83
7,851
$47,83
6,491
Retained Earnings $4,87
7,899
$9,60
3,326
$14,6
59,20
8
$21,5
71,36
8
$16,1
97,89
8
$22,1
17,28
8
$28,6
82,52
4
$38,15
2,850
$35,58
5,260
$46,30
3,765
$57,36
7,743
$71,42
4,630
Total Equity $14,0
53,89
9
$18,7
79,32
6
$29,9
47,94
8
$37,3
59,85
2
$38,4
03,00
3
$46,7
88,33
7
$59,8
03,52
8
$70,67
2,715
$75,25
7,951
$90,40
2,656
$113,3
81,594
$128,4
37,121
TOTAL EQUITY
& LIABILITY
$31,4
33,16
8
$38,6
83,52
1
$52,3
22,83
1
$64,6
63,28
9
$59,4
74,77
0
$69,3
29,90
3
$85,8
61,63
6
$103,8
16,874
$106,7
54,220
$123,0
65,010
$151,1
49,342
$168,9
66,130
Projected Cash Flow Statement
CASH FLOW STATEMENT:
Particulars Year 1 Year 2 Year 3
Quart
er 1
Quart
er 2
Quar
ter 3
Quart
er 4
Quart
er 1
Quart
er 2
Quar
ter 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Cash Flow
from
Operating
Activities:
Net Cash Sales
$36,60
1,875
$38,51
0,438
$40,3
52,17
5
$52,38
8,775
$52,53
0,570
$45,93
5,438
$50,2
07,62
5
$68,86
1,959
$97,97
5,508
$76,95
9,383
$79,19
4,375
$98,59
5,900
Payments for
Fooding,
Drinking &
Supplies
($6,52
8,300)
($10,1
54,400
)
($7,4
14,81
5)
($12,8
37,585
)
($10,6
66,515
)
($11,6
82,195
)
($9,7
28,28
0)
($16,1
78,775
)
($19,9
08,008
)
($20,2
12,530
)
($14,6
07,233
)
($24,3
06,405
)
Wages &
Salaries Paid
($2,04
2,100)
($3,52
4,467)
($2,8
24,40
5)
($4,23
6,562)
($3,75
5,972)
($4,02
6,632)
($3,5
00,02
7)
($5,22
3,092)
($6,27
9,361)
($6,39
6,964)
($4,87
3,561)
($7,48
4,839)
Electricity Bill
Paid
($3,32
2,800)
($5,14
4,400)
($3,7
21,14
0)
($6,46
1,460)
($5,34
1,140)
($5,85
3,420)
($4,7
94,48
0)
($8,09
9,100)
($9,92
8,320)
($10,1
20,605
)
($7,33
8,570)
($12,1
47,405
)
Payment for
Power & Fuel
($2,86
8,975)
($3,03
3,563)
($3,1
88,43
($4,14
6,480)
($4,14
6,480)
($3,64
3,313)
($4,0
01,62
($5,45
0,141)
($7,76
1,938)
($6,07
4,213)
($6,25
1,400)
($7,79
7,825)
MANAGE BUDGETS AND FINANCIAL PLANS
Equity:
Equity Capital $9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,17
6,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
General Reserve $6,11
2,740
$6,61
2,483
$13,0
29,10
5
$15,4
95,04
9
$21,9
45,00
4
$23,34
3,865
$30,49
6,691
$34,92
2,891
$46,83
7,851
$47,83
6,491
Retained Earnings $4,87
7,899
$9,60
3,326
$14,6
59,20
8
$21,5
71,36
8
$16,1
97,89
8
$22,1
17,28
8
$28,6
82,52
4
$38,15
2,850
$35,58
5,260
$46,30
3,765
$57,36
7,743
$71,42
4,630
Total Equity $14,0
53,89
9
$18,7
79,32
6
$29,9
47,94
8
$37,3
59,85
2
$38,4
03,00
3
$46,7
88,33
7
$59,8
03,52
8
$70,67
2,715
$75,25
7,951
$90,40
2,656
$113,3
81,594
$128,4
37,121
TOTAL EQUITY
& LIABILITY
$31,4
33,16
8
$38,6
83,52
1
$52,3
22,83
1
$64,6
63,28
9
$59,4
74,77
0
$69,3
29,90
3
$85,8
61,63
6
$103,8
16,874
$106,7
54,220
$123,0
65,010
$151,1
49,342
$168,9
66,130
Projected Cash Flow Statement
CASH FLOW STATEMENT:
Particulars Year 1 Year 2 Year 3
Quart
er 1
Quart
er 2
Quar
ter 3
Quart
er 4
Quart
er 1
Quart
er 2
Quar
ter 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Cash Flow
from
Operating
Activities:
Net Cash Sales
$36,60
1,875
$38,51
0,438
$40,3
52,17
5
$52,38
8,775
$52,53
0,570
$45,93
5,438
$50,2
07,62
5
$68,86
1,959
$97,97
5,508
$76,95
9,383
$79,19
4,375
$98,59
5,900
Payments for
Fooding,
Drinking &
Supplies
($6,52
8,300)
($10,1
54,400
)
($7,4
14,81
5)
($12,8
37,585
)
($10,6
66,515
)
($11,6
82,195
)
($9,7
28,28
0)
($16,1
78,775
)
($19,9
08,008
)
($20,2
12,530
)
($14,6
07,233
)
($24,3
06,405
)
Wages &
Salaries Paid
($2,04
2,100)
($3,52
4,467)
($2,8
24,40
5)
($4,23
6,562)
($3,75
5,972)
($4,02
6,632)
($3,5
00,02
7)
($5,22
3,092)
($6,27
9,361)
($6,39
6,964)
($4,87
3,561)
($7,48
4,839)
Electricity Bill
Paid
($3,32
2,800)
($5,14
4,400)
($3,7
21,14
0)
($6,46
1,460)
($5,34
1,140)
($5,85
3,420)
($4,7
94,48
0)
($8,09
9,100)
($9,92
8,320)
($10,1
20,605
)
($7,33
8,570)
($12,1
47,405
)
Payment for
Power & Fuel
($2,86
8,975)
($3,03
3,563)
($3,1
88,43
($4,14
6,480)
($4,14
6,480)
($3,64
3,313)
($4,0
01,62
($5,45
0,141)
($7,76
1,938)
($6,07
4,213)
($6,25
1,400)
($7,79
7,825)
18
MANAGE BUDGETS AND FINANCIAL PLANS
0) 5)
Telephone &
Internet Bill
Paid
($332,
280)
($514,
440)
($372
,114)
($646,
146)
($534,
114)
($585,
342)
($479
,448)
($809,
910)
($992,
832)
($1,01
2,061)
($733,
857)
($1,21
4,741)
Cost of Tour
($317,
363)
($336,
375)
($354
,071)
($460,
834)
($553,
001)
($487,
013)
($536
,153)
($727,
799)
($1,10
6,703)
($864,
513)
($889,
785)
($1,11
0,915)
Cleaning
Charges
($2,88
2,700)
($3,02
6,250)
($3,1
66,56
0)
($4,10
7,960)
($4,10
7,960)
($3,58
4,250)
($3,9
08,70
0)
($5,37
8,445)
($7,63
6,725)
($6,00
9,075)
($6,18
3,225)
($7,69
1,175)
Maintenance
Charges
($4,32
4,050)
($4,53
9,375)
($4,7
49,84
0)
($6,16
1,940)
($6,16
1,940)
($5,37
6,375)
($5,8
63,05
0)
($8,06
7,668)
($11,4
55,088
)
($9,01
3,613)
($9,27
4,838)
($11,5
36,763
)
Membership to
Hotel
Association
($2,00
0)
($2,00
0)
($2,0
00)
($2,00
0)
($2,00
0)
($2,00
0)
($2,0
00)
($2,00
0)
($2,50
0)
($2,50
0)
($2,50
0)
($2,50
0)
Insurance
($5,00
0)
($5,00
0)
($5,0
00)
($5,00
0)
($5,00
0)
($5,00
0)
($5,0
00)
($5,00
0)
($6,00
0)
($6,00
0)
($6,00
0)
($6,00
0)
Advertisement
& Promotion
($50,0
00)
($125,
000)
($50,
000)
($50,0
00)
($62,5
00)
($62,5
00)
($62,
500)
($62,5
00)
($68,7
50)
($68,7
50)
($68,7
50)
($68,7
50)
Income Tax
Expenses
($9,24
4,872)
($12,3
89,133
)
Commission to
Travel Agencies
($210,
150)
($219,
825)
($229
,500)
($297,
360)
($297,
360)
($258,
525)
($280
,890)
($388,
553)
($550,
845)
($434,
655)
($447,
210)
($555,
480)
Cash
Inflow/(Outflo
w) from
Operating
Activities
$13,71
6,158
$7,885
,343
$14,2
74,30
0
$12,97
5,449
$7,651
,717
$10,36
8,874
$17,0
45,47
3
$18,46
8,977
$19,88
9,306
$16,74
3,905
$28,51
7,447
$24,67
3,103
Cash Flow
from Investing
Activities:
Purchase of
Non-Current
Assets
($14,2
50,000
)
Additional
Improvement
Cost
($37,5
00,000
)
Preliminary
Expenses
($702,
000)
MANAGE BUDGETS AND FINANCIAL PLANS
0) 5)
Telephone &
Internet Bill
Paid
($332,
280)
($514,
440)
($372
,114)
($646,
146)
($534,
114)
($585,
342)
($479
,448)
($809,
910)
($992,
832)
($1,01
2,061)
($733,
857)
($1,21
4,741)
Cost of Tour
($317,
363)
($336,
375)
($354
,071)
($460,
834)
($553,
001)
($487,
013)
($536
,153)
($727,
799)
($1,10
6,703)
($864,
513)
($889,
785)
($1,11
0,915)
Cleaning
Charges
($2,88
2,700)
($3,02
6,250)
($3,1
66,56
0)
($4,10
7,960)
($4,10
7,960)
($3,58
4,250)
($3,9
08,70
0)
($5,37
8,445)
($7,63
6,725)
($6,00
9,075)
($6,18
3,225)
($7,69
1,175)
Maintenance
Charges
($4,32
4,050)
($4,53
9,375)
($4,7
49,84
0)
($6,16
1,940)
($6,16
1,940)
($5,37
6,375)
($5,8
63,05
0)
($8,06
7,668)
($11,4
55,088
)
($9,01
3,613)
($9,27
4,838)
($11,5
36,763
)
Membership to
Hotel
Association
($2,00
0)
($2,00
0)
($2,0
00)
($2,00
0)
($2,00
0)
($2,00
0)
($2,0
00)
($2,00
0)
($2,50
0)
($2,50
0)
($2,50
0)
($2,50
0)
Insurance
($5,00
0)
($5,00
0)
($5,0
00)
($5,00
0)
($5,00
0)
($5,00
0)
($5,0
00)
($5,00
0)
($6,00
0)
($6,00
0)
($6,00
0)
($6,00
0)
Advertisement
& Promotion
($50,0
00)
($125,
000)
($50,
000)
($50,0
00)
($62,5
00)
($62,5
00)
($62,
500)
($62,5
00)
($68,7
50)
($68,7
50)
($68,7
50)
($68,7
50)
Income Tax
Expenses
($9,24
4,872)
($12,3
89,133
)
Commission to
Travel Agencies
($210,
150)
($219,
825)
($229
,500)
($297,
360)
($297,
360)
($258,
525)
($280
,890)
($388,
553)
($550,
845)
($434,
655)
($447,
210)
($555,
480)
Cash
Inflow/(Outflo
w) from
Operating
Activities
$13,71
6,158
$7,885
,343
$14,2
74,30
0
$12,97
5,449
$7,651
,717
$10,36
8,874
$17,0
45,47
3
$18,46
8,977
$19,88
9,306
$16,74
3,905
$28,51
7,447
$24,67
3,103
Cash Flow
from Investing
Activities:
Purchase of
Non-Current
Assets
($14,2
50,000
)
Additional
Improvement
Cost
($37,5
00,000
)
Preliminary
Expenses
($702,
000)
19
MANAGE BUDGETS AND FINANCIAL PLANS
Cash
Inflow/(Outflo
w) from
Investing
Activities
($14,9
52,000
) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($37,5
00,000
)
Cash Flow
from Financing
Activities:
Share Issue
$9,176
,000
Loan From
Bank
$9,176
,000
Repayment of
Loan
($6,42
3,200)
Dividend Paid
($12,3
26,496
)
($16,5
18,844
)
Interest
Payment
($194,
990)
($194,
990)
($194
,990)
($194,
990)
($194,
990)
($194,
990)
($194
,990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
Cash
Inflow/(Outflo
w) from
Financing
Activities
$18,15
7,010
($194,
990)
($194
,990)
($194,
990)
($12,5
21,486
)
($194,
990)
($194
,990)
($194,
990)
($16,7
13,834
)
($194,
990)
($194,
990)
($6,61
8,190)
Net Cash
Increase/(Decr
ease) for the
period
$16,92
1,168
$7,690
,353
$14,0
79,31
0
$12,78
0,459
($4,86
9,770)
$10,17
3,884
$16,8
50,48
3
$18,27
3,987
$3,175
,472
$16,54
8,915
$28,32
2,457
($19,4
45,087
)
Add: Opening
Cash Balance $0
$16,92
1,168
$24,6
11,52
1
$38,69
0,831
$51,47
1,289
$46,60
1,520
$56,7
75,40
3
$73,62
5,886
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
Closing Cash
Balance
$16,92
1,168
$24,61
1,521
$38,6
90,83
1
$51,47
1,289
$46,60
1,520
$56,77
5,403
$73,6
25,88
6
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
$120,5
01,630
MANAGE BUDGETS AND FINANCIAL PLANS
Cash
Inflow/(Outflo
w) from
Investing
Activities
($14,9
52,000
) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($37,5
00,000
)
Cash Flow
from Financing
Activities:
Share Issue
$9,176
,000
Loan From
Bank
$9,176
,000
Repayment of
Loan
($6,42
3,200)
Dividend Paid
($12,3
26,496
)
($16,5
18,844
)
Interest
Payment
($194,
990)
($194,
990)
($194
,990)
($194,
990)
($194,
990)
($194,
990)
($194
,990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
($194,
990)
Cash
Inflow/(Outflo
w) from
Financing
Activities
$18,15
7,010
($194,
990)
($194
,990)
($194,
990)
($12,5
21,486
)
($194,
990)
($194
,990)
($194,
990)
($16,7
13,834
)
($194,
990)
($194,
990)
($6,61
8,190)
Net Cash
Increase/(Decr
ease) for the
period
$16,92
1,168
$7,690
,353
$14,0
79,31
0
$12,78
0,459
($4,86
9,770)
$10,17
3,884
$16,8
50,48
3
$18,27
3,987
$3,175
,472
$16,54
8,915
$28,32
2,457
($19,4
45,087
)
Add: Opening
Cash Balance $0
$16,92
1,168
$24,6
11,52
1
$38,69
0,831
$51,47
1,289
$46,60
1,520
$56,7
75,40
3
$73,62
5,886
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
Closing Cash
Balance
$16,92
1,168
$24,61
1,521
$38,6
90,83
1
$51,47
1,289
$46,60
1,520
$56,77
5,403
$73,6
25,88
6
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
$120,5
01,630
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20
MANAGE BUDGETS AND FINANCIAL PLANS
Explanation
The net cash flow from operating activities in the first quarter of initial year arrives at $13,716,158 and gradually
increases till third quarter of final year as it arrives at $24,673,103 (Karadag 2015).
The net cash flow from investing activities in the first quarter of initial year arrives at ($14,952,000) and gradually
decreases till third quarter of final year as it arrives at ($37,500,000). The negative figure in the investing activities
signifies that Adventure Tours and Travels Limited need to purchase non-current assets such as machinery, equipment
for the company.
The net cash flow from financing activities in the first quarter of initial year arrives at $18,157,010 and gradually
decreases till third quarter of final year as it arrives at ($6,618,190). Adventure Tours and Travel limited will issue
shares, take loan from bank in the initial years of operations (Brigham and Ehrhardt 2013).
Working Capital Management
Working Capital Management:
Particulars Year 1 Year 2 Year 3
Quar
ter 1
Quar
ter 2
Quar
ter 3
Quar
ter 4
Quar
ter 1
Quar
ter 2
Quar
ter 3
Quar
ter 4
Quar
ter 1
Quart
er 2
Quart
er 3
Quart
er 4
Current Assets:
Cash at Bank
$16,9
21,16
8
$24,6
11,52
1
$38,6
90,83
1
$51,4
71,28
9
$46,6
01,52
0
$56,7
75,40
3
$73,6
25,88
6
$91,8
99,87
4
$95,0
75,34
5
$111,6
24,260
$139,9
46,717
$120,5
01,630
Total Current
Assets
$16,9
21,16
8
$24,6
11,52
1
$38,6
90,83
1
$51,4
71,28
9
$46,6
01,52
0
$56,7
75,40
3
$73,6
25,88
6
$91,8
99,87
4
$95,0
75,34
5
$111,6
24,260
$139,9
46,717
$120,5
01,630
Current
Liabilities:
Current
Liabilities:
Accounts Payable
$3,26
4,150
$3,44
5,125
$3,61
6,920
$4,70
0,820
$4,70
0,820
$4,12
3,125
$4,52
0,550
$6,17
2,703
$8,78
4,338
$6,883
,763
$7,084
,238
$8,830
,463
Accrued Expenses: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
MANAGE BUDGETS AND FINANCIAL PLANS
Explanation
The net cash flow from operating activities in the first quarter of initial year arrives at $13,716,158 and gradually
increases till third quarter of final year as it arrives at $24,673,103 (Karadag 2015).
The net cash flow from investing activities in the first quarter of initial year arrives at ($14,952,000) and gradually
decreases till third quarter of final year as it arrives at ($37,500,000). The negative figure in the investing activities
signifies that Adventure Tours and Travels Limited need to purchase non-current assets such as machinery, equipment
for the company.
The net cash flow from financing activities in the first quarter of initial year arrives at $18,157,010 and gradually
decreases till third quarter of final year as it arrives at ($6,618,190). Adventure Tours and Travel limited will issue
shares, take loan from bank in the initial years of operations (Brigham and Ehrhardt 2013).
Working Capital Management
Working Capital Management:
Particulars Year 1 Year 2 Year 3
Quar
ter 1
Quar
ter 2
Quar
ter 3
Quar
ter 4
Quar
ter 1
Quar
ter 2
Quar
ter 3
Quar
ter 4
Quar
ter 1
Quart
er 2
Quart
er 3
Quart
er 4
Current Assets:
Cash at Bank
$16,9
21,16
8
$24,6
11,52
1
$38,6
90,83
1
$51,4
71,28
9
$46,6
01,52
0
$56,7
75,40
3
$73,6
25,88
6
$91,8
99,87
4
$95,0
75,34
5
$111,6
24,260
$139,9
46,717
$120,5
01,630
Total Current
Assets
$16,9
21,16
8
$24,6
11,52
1
$38,6
90,83
1
$51,4
71,28
9
$46,6
01,52
0
$56,7
75,40
3
$73,6
25,88
6
$91,8
99,87
4
$95,0
75,34
5
$111,6
24,260
$139,9
46,717
$120,5
01,630
Current
Liabilities:
Current
Liabilities:
Accounts Payable
$3,26
4,150
$3,44
5,125
$3,61
6,920
$4,70
0,820
$4,70
0,820
$4,12
3,125
$4,52
0,550
$6,17
2,703
$8,78
4,338
$6,883
,763
$7,084
,238
$8,830
,463
Accrued Expenses: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
21
MANAGE BUDGETS AND FINANCIAL PLANS
Salary to Staff
$1,02
1,050
$1,25
1,708
$1,29
6,873
$1,58
5,173
$1,61
8,507
$1,46
3,542
$1,56
8,017
$2,00
9,534
$2,73
6,925
$2,232
,775
$2,286
,100
$2,750
,050
Electricity, Internet
& Other Resources
$1,82
7,540
$1,91
5,650
$2,00
2,572
$2,59
6,572
$2,59
6,572
$2,26
2,150
$2,46
3,120
$3,39
6,789
$4,81
9,898
$3,797
,063
$3,906
,953
$4,856
,858
Total Current
Liabilities
$6,11
2,740
$6,61
2,483
$6,91
6,365
$8,88
2,565
$8,91
5,899
$7,84
8,817
$8,55
1,687
$11,5
79,02
6
$16,3
41,16
0
$12,91
3,600
$13,27
7,290
$16,43
7,370
Net Working
Capital
$10,8
08,42
8
$17,9
99,03
8
$31,7
74,46
5
$42,5
88,72
4
$37,6
85,62
1
$48,9
26,58
7
$65,0
74,20
0
$80,3
20,84
8
$78,7
34,18
5
$98,71
0,660
$126,6
69,427
$104,0
64,260
Explanation
The start-up company working capital for first quarter arrives at $10808428 and last quarter of third year arrives at
$104064260. By the end of third year, there will be enough working capital for the company so that they can easily meet the
day-to-day working of business practices (Brigham and Daves 2014).
MANAGE BUDGETS AND FINANCIAL PLANS
Salary to Staff
$1,02
1,050
$1,25
1,708
$1,29
6,873
$1,58
5,173
$1,61
8,507
$1,46
3,542
$1,56
8,017
$2,00
9,534
$2,73
6,925
$2,232
,775
$2,286
,100
$2,750
,050
Electricity, Internet
& Other Resources
$1,82
7,540
$1,91
5,650
$2,00
2,572
$2,59
6,572
$2,59
6,572
$2,26
2,150
$2,46
3,120
$3,39
6,789
$4,81
9,898
$3,797
,063
$3,906
,953
$4,856
,858
Total Current
Liabilities
$6,11
2,740
$6,61
2,483
$6,91
6,365
$8,88
2,565
$8,91
5,899
$7,84
8,817
$8,55
1,687
$11,5
79,02
6
$16,3
41,16
0
$12,91
3,600
$13,27
7,290
$16,43
7,370
Net Working
Capital
$10,8
08,42
8
$17,9
99,03
8
$31,7
74,46
5
$42,5
88,72
4
$37,6
85,62
1
$48,9
26,58
7
$65,0
74,20
0
$80,3
20,84
8
$78,7
34,18
5
$98,71
0,660
$126,6
69,427
$104,0
64,260
Explanation
The start-up company working capital for first quarter arrives at $10808428 and last quarter of third year arrives at
$104064260. By the end of third year, there will be enough working capital for the company so that they can easily meet the
day-to-day working of business practices (Brigham and Daves 2014).
22
MANAGE BUDGETS AND FINANCIAL PLANS
Break-even Analysis
BREAK EVEN ANALYSIS:
Particula
rs
Year 1 Year 2 Year 3
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Weighted
Average
Room
Rent
$10,76
0
$10,39
5
$10,39
5
$10,39
5
$10,39
5
$10,17
4
$10,17
4
$10,36
5
$11,62
5
$11,62
5
$11,62
5
$11,62
5
Fooding
&
Drinking
Charges
per room
$8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $9,000 $9,000 $9,000 $9,000
Total
Revenue
per
Booking
$18,76
0
$18,39
5
$18,39
5
$18,39
5
$18,39
5
$18,17
4
$18,17
4
$18,36
5
$20,62
5
$20,62
5
$20,62
5
$20,62
5
Variable
Expenses
per Unit:
Cost of
Fooding
&
Drinking
$2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $3,150 $3,150 $3,150 $3,150
Wages to
Temporar
y Staffs
$1,338 $1,331 $1,327 $1,324 $1,324 $1,318 $1,311 $1,321 $1,482 $1,488 $1,488 $1,485
Supplies
Expenses
$2,214 $2,193 $2,180 $2,173 $2,173 $2,153 $2,132 $2,162 $2,422 $2,440 $2,439 $2,430
Electricit
y
$2,552 $2,524 $2,507 $2,497 $2,497 $2,470 $2,443 $2,482 $2,779 $2,803 $2,802 $2,790
Power &
Fuel
$1,469 $1,465 $1,463 $1,462 $1,462 $1,459 $1,455 $1,460 $1,641 $1,644 $1,644 $1,643
Telephon
e &
Internet
$255 $252 $251 $250 $250 $247 $244 $248 $278 $280 $280 $279
Cleaning
Charges
$1,476 $1,462 $1,453 $1,449 $1,449 $1,435 $1,422 $1,441 $1,615 $1,626 $1,626 $1,620
MANAGE BUDGETS AND FINANCIAL PLANS
Break-even Analysis
BREAK EVEN ANALYSIS:
Particula
rs
Year 1 Year 2 Year 3
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Weighted
Average
Room
Rent
$10,76
0
$10,39
5
$10,39
5
$10,39
5
$10,39
5
$10,17
4
$10,17
4
$10,36
5
$11,62
5
$11,62
5
$11,62
5
$11,62
5
Fooding
&
Drinking
Charges
per room
$8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $9,000 $9,000 $9,000 $9,000
Total
Revenue
per
Booking
$18,76
0
$18,39
5
$18,39
5
$18,39
5
$18,39
5
$18,17
4
$18,17
4
$18,36
5
$20,62
5
$20,62
5
$20,62
5
$20,62
5
Variable
Expenses
per Unit:
Cost of
Fooding
&
Drinking
$2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $3,150 $3,150 $3,150 $3,150
Wages to
Temporar
y Staffs
$1,338 $1,331 $1,327 $1,324 $1,324 $1,318 $1,311 $1,321 $1,482 $1,488 $1,488 $1,485
Supplies
Expenses
$2,214 $2,193 $2,180 $2,173 $2,173 $2,153 $2,132 $2,162 $2,422 $2,440 $2,439 $2,430
Electricit
y
$2,552 $2,524 $2,507 $2,497 $2,497 $2,470 $2,443 $2,482 $2,779 $2,803 $2,802 $2,790
Power &
Fuel
$1,469 $1,465 $1,463 $1,462 $1,462 $1,459 $1,455 $1,460 $1,641 $1,644 $1,644 $1,643
Telephon
e &
Internet
$255 $252 $251 $250 $250 $247 $244 $248 $278 $280 $280 $279
Cleaning
Charges
$1,476 $1,462 $1,453 $1,449 $1,449 $1,435 $1,422 $1,441 $1,615 $1,626 $1,626 $1,620
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23
MANAGE BUDGETS AND FINANCIAL PLANS
Maintena
nce
Charges
$2,214 $2,193 $2,180 $2,173 $2,173 $2,153 $2,132 $2,162 $2,422 $2,440 $2,439 $2,430
Special
Discount
on
Corporat
e
Booking
$269 $265 $263 $262 $262 $259 $255 $260 $291 $294 $294 $293
Commiss
ion to
Travel
Agencies
$108 $106 $105 $105 $105 $104 $102 $104 $116 $118 $118 $117
Total
Variable
Expenses
per
booking
$14,69
5
$14,59
2
$14,52
9
$14,49
4
$14,49
4
$14,39
6
$14,29
8
$14,44
0
$16,19
7
$16,28
3
$16,28
0
$16,23
6
Contribu
tion
Margin
per
Booking
$4,065 $3,802 $3,866 $3,900 $3,900 $3,778 $3,877 $3,925 $4,428 $4,342 $4,345 $4,389
Fixed
Expenses
:
Depreciat
ion on
Building
&
Improve
ment
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
Depreciat
ion on
Furniture
&
Fittings
$37,50
0
$37,50
0
$37,50
0
$37,50
0
$33,75
0
$33,75
0
$33,75
0
$33,75
0
$30,37
5
$30,37
5
$30,37
5
$30,37
5
Depreciat
ion on
Compute
r,
Electroni
$225,0
00
$225,0
00
$225,0
00
$225,0
00
$157,5
00
$157,5
00
$157,5
00
$157,5
00
$110,2
50
$110,2
50
$110,2
50
$110,2
50
MANAGE BUDGETS AND FINANCIAL PLANS
Maintena
nce
Charges
$2,214 $2,193 $2,180 $2,173 $2,173 $2,153 $2,132 $2,162 $2,422 $2,440 $2,439 $2,430
Special
Discount
on
Corporat
e
Booking
$269 $265 $263 $262 $262 $259 $255 $260 $291 $294 $294 $293
Commiss
ion to
Travel
Agencies
$108 $106 $105 $105 $105 $104 $102 $104 $116 $118 $118 $117
Total
Variable
Expenses
per
booking
$14,69
5
$14,59
2
$14,52
9
$14,49
4
$14,49
4
$14,39
6
$14,29
8
$14,44
0
$16,19
7
$16,28
3
$16,28
0
$16,23
6
Contribu
tion
Margin
per
Booking
$4,065 $3,802 $3,866 $3,900 $3,900 $3,778 $3,877 $3,925 $4,428 $4,342 $4,345 $4,389
Fixed
Expenses
:
Depreciat
ion on
Building
&
Improve
ment
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
$35,00
0
Depreciat
ion on
Furniture
&
Fittings
$37,50
0
$37,50
0
$37,50
0
$37,50
0
$33,75
0
$33,75
0
$33,75
0
$33,75
0
$30,37
5
$30,37
5
$30,37
5
$30,37
5
Depreciat
ion on
Compute
r,
Electroni
$225,0
00
$225,0
00
$225,0
00
$225,0
00
$157,5
00
$157,5
00
$157,5
00
$157,5
00
$110,2
50
$110,2
50
$110,2
50
$110,2
50
24
MANAGE BUDGETS AND FINANCIAL PLANS
c
Equipme
nt &
Other
Devices
Depreciat
ion on
Kitchen
Applianc
es,
Cutleries
&
Crookeri
es
$125,0
00
$125,0
00
$125,0
00
$125,0
00
$75,00
0
$75,00
0
$75,00
0
$75,00
0
$45,00
0
$45,00
0
$45,00
0
$45,00
0
Depreciat
ion on
Motor
Vehicles
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
Wages &
Salary to
Permane
nt Staffs
$450,0
00
$1,000,
000
$1,000,
000
$1,000,
000
$1,100,
000
$1,100,
000
$1,100,
000
$1,100,
000
$1,200,
000
$1,200,
000
$1,200,
000
$1,200,
000
Members
hip to
Hotel
Associati
on
$2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,500 $2,500 $2,500 $2,500
Insurance $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $6,000 $6,000 $6,000 $6,000
Advertise
ment &
Promotio
n
$50,00
0
$125,0
00
$50,00
0
$50,00
0
$62,50
0
$62,50
0
$62,50
0
$62,50
0
$68,75
0
$68,75
0
$68,75
0
$68,75
0
Total
Fixed
Expenses
$947,0
00
$1,572,
000
$1,497,
000
$1,497,
000
$1,488,
250
$1,488,
250
$1,488,
250
$1,488,
250
$1,515,
375
$1,515,
375
$1,515,
375
$1,515,
375
Break
Even
Sales (in
Units)
233 413 387 384 382 394 384 379 342 349 349 345
Break
Even
Sales (in
$4,370,
175
$7,604,
701
$7,123,
278
$7,060,
246
$7,018,
979
$7,159,
493
$6,977,
070
$6,963,
529
$7,058,
901
$7,198,
856
$7,194,
049
$7,121,
685
MANAGE BUDGETS AND FINANCIAL PLANS
c
Equipme
nt &
Other
Devices
Depreciat
ion on
Kitchen
Applianc
es,
Cutleries
&
Crookeri
es
$125,0
00
$125,0
00
$125,0
00
$125,0
00
$75,00
0
$75,00
0
$75,00
0
$75,00
0
$45,00
0
$45,00
0
$45,00
0
$45,00
0
Depreciat
ion on
Motor
Vehicles
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
$17,50
0
Wages &
Salary to
Permane
nt Staffs
$450,0
00
$1,000,
000
$1,000,
000
$1,000,
000
$1,100,
000
$1,100,
000
$1,100,
000
$1,100,
000
$1,200,
000
$1,200,
000
$1,200,
000
$1,200,
000
Members
hip to
Hotel
Associati
on
$2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,500 $2,500 $2,500 $2,500
Insurance $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $6,000 $6,000 $6,000 $6,000
Advertise
ment &
Promotio
n
$50,00
0
$125,0
00
$50,00
0
$50,00
0
$62,50
0
$62,50
0
$62,50
0
$62,50
0
$68,75
0
$68,75
0
$68,75
0
$68,75
0
Total
Fixed
Expenses
$947,0
00
$1,572,
000
$1,497,
000
$1,497,
000
$1,488,
250
$1,488,
250
$1,488,
250
$1,488,
250
$1,515,
375
$1,515,
375
$1,515,
375
$1,515,
375
Break
Even
Sales (in
Units)
233 413 387 384 382 394 384 379 342 349 349 345
Break
Even
Sales (in
$4,370,
175
$7,604,
701
$7,123,
278
$7,060,
246
$7,018,
979
$7,159,
493
$6,977,
070
$6,963,
529
$7,058,
901
$7,198,
856
$7,194,
049
$7,121,
685
25
MANAGE BUDGETS AND FINANCIAL PLANS
amount)
Outcome results
The break-even sales in unit is at 233 for first quarter of operations and end up with 345 for the last quarter of third year
of operations that is less than the projected sales generated from rooms occupancy (Arnold 2013)
The break-even sales in amount is even low than the projected sales generated from rooms occupancy
Capital Budgeting Analysis
Capital Budgeting Analysis:
Particulars Quarter
0 1 2 3 4 5 6 7 8 9 10 11 12
Initial
Investment
($18,3
52,000
)
Net
Operating
Cash Flow
$13,7
16,15
8
$7,88
5,343
$14,2
74,30
0
$12,9
75,44
9
$7,65
1,717
$10,3
68,87
4
$17,0
45,47
3
$18,4
68,97
7
$19,8
89,30
6
$16,7
43,90
5
$28,5
17,44
7
$24,6
73,10
3
Net Cash
Flow
($18,3
52,000
)
$13,7
16,15
8
$7,88
5,343
$14,2
74,30
0
$12,9
75,44
9
$7,65
1,717
$10,3
68,87
4
$17,0
45,47
3
$18,4
68,97
7
$19,8
89,30
6
$16,7
43,90
5
$28,5
17,44
7
$24,6
73,10
3
Required
Rate of
Return
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
Discounting
Factor
1 0.909
09090
9
0.826
44628
1
0.751
31480
1
0.683
01345
5
0.620
92132
3
0.564
47393
0.513
15811
8
0.466
50738
0.424
09761
8
0.385
54328
9
0.350
49389
9
0.318
63081
8
Discounted
Cash Flow
($18,3
52,000
)
$12,4
69,23
4
$6,51
6,813
$10,7
24,49
3
$8,86
2,406
$4,75
1,114
$5,85
2,959
$8,74
7,023
$8,61
5,914
$8,43
5,007
$6,45
5,500
$9,99
5,191
$7,86
1,611
Net Present
Value
$80,935,265
MANAGE BUDGETS AND FINANCIAL PLANS
amount)
Outcome results
The break-even sales in unit is at 233 for first quarter of operations and end up with 345 for the last quarter of third year
of operations that is less than the projected sales generated from rooms occupancy (Arnold 2013)
The break-even sales in amount is even low than the projected sales generated from rooms occupancy
Capital Budgeting Analysis
Capital Budgeting Analysis:
Particulars Quarter
0 1 2 3 4 5 6 7 8 9 10 11 12
Initial
Investment
($18,3
52,000
)
Net
Operating
Cash Flow
$13,7
16,15
8
$7,88
5,343
$14,2
74,30
0
$12,9
75,44
9
$7,65
1,717
$10,3
68,87
4
$17,0
45,47
3
$18,4
68,97
7
$19,8
89,30
6
$16,7
43,90
5
$28,5
17,44
7
$24,6
73,10
3
Net Cash
Flow
($18,3
52,000
)
$13,7
16,15
8
$7,88
5,343
$14,2
74,30
0
$12,9
75,44
9
$7,65
1,717
$10,3
68,87
4
$17,0
45,47
3
$18,4
68,97
7
$19,8
89,30
6
$16,7
43,90
5
$28,5
17,44
7
$24,6
73,10
3
Required
Rate of
Return
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
10.00
%
Discounting
Factor
1 0.909
09090
9
0.826
44628
1
0.751
31480
1
0.683
01345
5
0.620
92132
3
0.564
47393
0.513
15811
8
0.466
50738
0.424
09761
8
0.385
54328
9
0.350
49389
9
0.318
63081
8
Discounted
Cash Flow
($18,3
52,000
)
$12,4
69,23
4
$6,51
6,813
$10,7
24,49
3
$8,86
2,406
$4,75
1,114
$5,85
2,959
$8,74
7,023
$8,61
5,914
$8,43
5,007
$6,45
5,500
$9,99
5,191
$7,86
1,611
Net Present
Value
$80,935,265
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26
MANAGE BUDGETS AND FINANCIAL PLANS
Internal
Rate of
Return
50.89%
Explanation
The initial investment of the start-up tours and travel companies arrives at $18,352,000.
To attain success in the business, the start-up company NPV will arrive at $80,935,265 for the initial 3 years of
business operations
To attain success in the business, the start-up company IRR will be 50.89% for the initial 3 years of business operations
MANAGE BUDGETS AND FINANCIAL PLANS
Internal
Rate of
Return
50.89%
Explanation
The initial investment of the start-up tours and travel companies arrives at $18,352,000.
To attain success in the business, the start-up company NPV will arrive at $80,935,265 for the initial 3 years of
business operations
To attain success in the business, the start-up company IRR will be 50.89% for the initial 3 years of business operations
27
MANAGE BUDGETS AND FINANCIAL PLANS
Projected Ratio Analysis
RATIO ANALYSIS:
Particular
s
Year 1 Year 2 Year 3
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quarte
r 2
Quarte
r 3
Quarte
r 4
Total
Revenue
$36,60
1,875
$38,51
0,438
$40,35
2,175
$52,38
8,775
$52,53
0,570
$45,93
5,438
$50,20
7,625
$68,86
1,959
$97,97
5,508
$76,95
9,383
$79,19
4,375
$98,59
5,900
Net Profit $6,968
,428
$6,750
,610
$7,222
,688
$9,874
,515
$9,932
,894
$8,456
,273
$9,378
,908
$13,52
9,037
$19,93
0,365
$15,31
2,150
$15,80
5,683
$20,08
1,268
Current
Assets
$16,92
1,168
$24,61
1,521
$38,69
0,831
$51,47
1,289
$46,60
1,520
$56,77
5,403
$73,62
5,886
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
$120,5
01,630
Current
Liabilities
$17,37
9,268
$19,90
4,195
$22,37
4,883
$27,30
3,437
$21,07
1,767
$22,54
1,566
$26,05
8,109
$33,14
4,159
$31,49
6,269
$32,66
2,354
$37,76
7,749
$40,52
9,009
Owner's
Equity
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176,
000
$9,176,
000
$9,176,
000
Net Profit
Margin
19.04
%
17.53
%
17.90
%
18.85
%
18.91
%
18.41
%
18.68
%
19.65
%
20.34
%
19.90
%
19.96
%
20.37
%
Current
Ratio
0.974 1.236 1.729 1.885 2.212 2.519 2.825 2.773 3.019 3.418 3.705 2.973
Return on
Equity
0.759 0.736 0.787 1.076 1.082 0.922 1.022 1.474 2.172 1.669 1.723 2.188
Explanation
From the above projected ratio analysis figures, business investors and stakeholders will be informed about Adventure
Tours and Travels Limited operations. The start-up tours and Travels Company will be achieving net profit margin at 19.04%
in the first year of operations and end at 20.37% in the third year of operations. The current ratio will be at 0.97 in the initial
stage of year and then it will lead to 2.97 where the company can easily meet the short-term obligations in the most appropriate
way. Return on equity will be at 0.759 in the first year and 2.18 in the third year of operations for Adventure Tours and Travels
Limited.
MANAGE BUDGETS AND FINANCIAL PLANS
Projected Ratio Analysis
RATIO ANALYSIS:
Particular
s
Year 1 Year 2 Year 3
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quart
er 2
Quart
er 3
Quart
er 4
Quart
er 1
Quarte
r 2
Quarte
r 3
Quarte
r 4
Total
Revenue
$36,60
1,875
$38,51
0,438
$40,35
2,175
$52,38
8,775
$52,53
0,570
$45,93
5,438
$50,20
7,625
$68,86
1,959
$97,97
5,508
$76,95
9,383
$79,19
4,375
$98,59
5,900
Net Profit $6,968
,428
$6,750
,610
$7,222
,688
$9,874
,515
$9,932
,894
$8,456
,273
$9,378
,908
$13,52
9,037
$19,93
0,365
$15,31
2,150
$15,80
5,683
$20,08
1,268
Current
Assets
$16,92
1,168
$24,61
1,521
$38,69
0,831
$51,47
1,289
$46,60
1,520
$56,77
5,403
$73,62
5,886
$91,89
9,874
$95,07
5,345
$111,6
24,260
$139,9
46,717
$120,5
01,630
Current
Liabilities
$17,37
9,268
$19,90
4,195
$22,37
4,883
$27,30
3,437
$21,07
1,767
$22,54
1,566
$26,05
8,109
$33,14
4,159
$31,49
6,269
$32,66
2,354
$37,76
7,749
$40,52
9,009
Owner's
Equity
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176
,000
$9,176,
000
$9,176,
000
$9,176,
000
Net Profit
Margin
19.04
%
17.53
%
17.90
%
18.85
%
18.91
%
18.41
%
18.68
%
19.65
%
20.34
%
19.90
%
19.96
%
20.37
%
Current
Ratio
0.974 1.236 1.729 1.885 2.212 2.519 2.825 2.773 3.019 3.418 3.705 2.973
Return on
Equity
0.759 0.736 0.787 1.076 1.082 0.922 1.022 1.474 2.172 1.669 1.723 2.188
Explanation
From the above projected ratio analysis figures, business investors and stakeholders will be informed about Adventure
Tours and Travels Limited operations. The start-up tours and Travels Company will be achieving net profit margin at 19.04%
in the first year of operations and end at 20.37% in the third year of operations. The current ratio will be at 0.97 in the initial
stage of year and then it will lead to 2.97 where the company can easily meet the short-term obligations in the most appropriate
way. Return on equity will be at 0.759 in the first year and 2.18 in the third year of operations for Adventure Tours and Travels
Limited.
28
MANAGE BUDGETS AND FINANCIAL PLANS
Reference List
Arnold, G., 2013. Corporate financial management. Pearson Higher Ed.
Brigham, E.F. and Daves, P.R., 2014. Intermediate Financial Management.
Cengage Learning.
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory &
practice. Cengage Learning.
Karadag, H., 2015. Financial management challenges in small and medium-sized
enterprises: A strategic management approach. Emerging Markets Journal, 5(1),
p.26.
Lasher, W.R., 2013. Practical financial management. Nelson Education.
Madura, J., 2014. International financial management. Nelson Education.
Petty, J.W., Titman, S., Keown, A.J., Martin, P., Martin, J.D. and Burrow, M.,
2015. Financial management: Principles and applications. Pearson Higher
Education AU.
Renz, D.O., 2016. The Jossey-Bass handbook of nonprofit leadership and
management. John Wiley & Sons.
MANAGE BUDGETS AND FINANCIAL PLANS
Reference List
Arnold, G., 2013. Corporate financial management. Pearson Higher Ed.
Brigham, E.F. and Daves, P.R., 2014. Intermediate Financial Management.
Cengage Learning.
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory &
practice. Cengage Learning.
Karadag, H., 2015. Financial management challenges in small and medium-sized
enterprises: A strategic management approach. Emerging Markets Journal, 5(1),
p.26.
Lasher, W.R., 2013. Practical financial management. Nelson Education.
Madura, J., 2014. International financial management. Nelson Education.
Petty, J.W., Titman, S., Keown, A.J., Martin, P., Martin, J.D. and Burrow, M.,
2015. Financial management: Principles and applications. Pearson Higher
Education AU.
Renz, D.O., 2016. The Jossey-Bass handbook of nonprofit leadership and
management. John Wiley & Sons.
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