Financial Plan for A to Z Skincare Ltd.

BSBFIM801
MANAGE FINANCIAL
RESOURCES
Assessment 1
Submitted by:
<Student name>
<Student Id>

Student Name Student Id
Introduction:
The new business is being proposed to be started in the city of Adelaide in
Australia. The business would be dealing in the skin care products and the
decision to introduce the same has been taken as per the requirement of the
place as there are not many shops and businesses dealing in the skin care
beauty products. For the purpose of the assessment and the analysis, a
business case has been prepared with the help of the financial statements.
The financial statements which has been included as a part of the
assessment are cash flow forecast, balance sheet forecast and the break-
even analysis for the new business. The same has been prepared based on
several permutation and combination and then presented to the decision
makes for decision making. The name of the new company would be “A to Z
Skincare Ltd.”
Part 1:
Financial Plan:
A financial plan that includes a cash flow forecast, balance sheet forecast, profit
and loss statement and the break-even analysis based on the marginal costing
statement for your new business has been shown below:
A to Z Skincare Ltd.
Marginal Costing Statement
for year ended 31st December 20X8
(Amt. in $)
Particulars per unit 12 months
Sales 8.00 120,000
Variable Cost
Material 2.00 30,000
Contribution 6.00 90000.00
Fixed Costs
Labour 2.08 31,200
Depreciation 0.48 7,200
Other overheads 2.9 43,500
Total Fixed Costs 81,900
Net Profit 0.54 8100.00
Break even point (in units) 13,650
Break even point (in sales) 109,200

Student Name Student Id
Month: 1 2 3 4 5 6 7 8 9 10 11 12 Totals
Receipts
Percent of Annual Sales 8% 4% 5% 10% 8% 12% 9% 8% 9% 7% 9% 11% 100%
Budgeted sales volume
(units) 1,200 600 750 1,500 1,200 1,800 1,350 1,200 1,350 1,050 1,350 1,650 15,000
Budgeted selling price 8 8 8 8 8 8 8 8 8 8 8 8
Total Receipts 9,600 4,800 6,000 12,000 9,600 14,400 10,800 9,600 10,800 8,400 10,800 13,200 120,000
Payments
Direct Materials Purchases 2,400 1,200 1,500 3,000 2,400 3,600 2,700 2,400 2,700 2,100 2,700 3,300 30,000
Direct Labour 2,496 1,248 1,560 3,120 2,496 3,744 2,808 2,496 2,808 2,184 2,808 3,432 31,200
Other Overhead Costs:
Depreciation 600 600 600 600 600 600 600 600 600 600 600 600 7,200
Utilities 300 150 188 375 300 450 338 300 338 263 338 413 3,750
Insurance 216 108 135 270 216 324 243 216 243 189 243 297 2,700
Factory Supervisor's Salary 408 204 255 510 408 612 459 408 459 357 459 561 5,100
Rent 120 60 75 150 120 180 135 120 135 105 135 165 1,500
Maintenance 216 108 135 270 216 324 243 216 243 189 243 297 2,700
Administrative Wages 480 240 300 600 480 720 540 480 540 420 540 660 6,000
General Office Expenses 408 204 255 510 408 612 459 408 459 357 459 561 5,100
Interest 492 246 308 615 492 738 554 492 554 431 554 677 6,150
Selling and administrative
expenses 840 420 525 1,050 840 1,260 945 840 945 735 945 1,155 10,500
Total Payments 8,976 4,788 5,835 11,070 8,976 13,164 10,023 8,976 10,023 7,929 10,023 12,117 111,900
Net Cashflow 624 12 165 930 624 1,236 777 624 777 471 777 1,083 8,100
Opening Bank Balance 3,500 4,124 4,136 4,301 5,231 5,855 7,091 7,868 8,492 9,269 9,740 10,517
Closing Bank Balance 4,124 4,136 4,301 5,231 5,855 7,091 7,868 8,492 9,269 9,740 10,517 11,600
A to Z Skincare Ltd.
Cash Budget for the year 20X8
Cash Flow Forecast - 12 Months

Student Name Student Id
A to Z Skincare Ltd.
Income statement for the year ended 31st December 20X8
£ £
Sales
Sales 120,000
Other - Sales of scrap 5,000
Total Sales 125,000
Less Cost of sales
Opening Inventory 6,500
Purchases 32,500
Closing Inventory 7,250 31,750
Total Cost of sales 31,750
Gross Profit 93,250
Operating Expenses
Labour expenses 31,200
Depreciation 7,200
Utilities 3,750
Insurance 2,700
Factory Supervisor's Salary 5,100
Rent 1,500
Maintenance 2,700
Administrative Wages 6,000
General Office Expenses 5,100
Interest 6,150
Selling and administrative expenses 10,500
Total expenses 81,900 81,900
11,350
Net Profit 11,350
A to Z Skincare Ltd.