Planning a Business Venture: Funding Requirements, Start Up Cost, Projected Balance Sheet and Cash Flow Statement

This presentation covers the funding requirements, start up cost, projected balance sheet and cash flow statement for a café business venture. The entrepreneur plans to fund the business through a long term loan from a bank and capital brought in by the partners. The start up cost includes equipment, furniture, legal expenses, wages and salaries, and rent expenses. The projected balance sheet shows the assets, liabilities, and net assets for 2018 and 2019. The projected cash flow statement shows the cash flow from operating, investing, and financing activities for 2018 and 2019.

Planning a Business Venture

Funding Requirements
The entrepreneur wants to open to a café business which will be
funded by a long term loan taken from a bank as per the plan of the
owner. The start up capital requirement of the business will be
funded by the following:
 Loan taken from the Bank
 Capital which is to be brought in by the partners of the business.

Start Up Cost of the Business
The business has considered assets such as equipment and
furniture. The expenses which are expected by the business mostly
related to the initial investments which the business needs to
undertake to start up the shop. Such expenses consist of legal
expenses, wages and salaries, rent expenses.

Particulars Amount Amount Amount Amount
ASSETS
Cash in Hand 500,000.00$ 550,000.00$
Security Deposit for Premises 50,000.00$ 50,000.00$
Total Current Assets 550,000.00$ 600,000.00$
Equipment 600,000.00$ 750,000.00$
Less : Accumulated Depreciation 100,000.00$ 500,000.00$ 150,000.00$ 600,000.00$
Furnitures 500,000.00$ 620,000.00$
Less : Depreciation 80,000.00$ 420,000.00$ 120,000.00$ 500,000.00$
Total Non-Current Assets 920,000.00$ 1,100,000.00$
TOTAL ASSETS 1,470,000.00$ 1,700,000.00$
LIABILITIES:-
Accounts Payable 400,000.00$ 450,000.00$
Other Payables 140,000.00$ 100,000.00$
Unearned Sales Revenue 40,000.00$ 50,000.00$
Accrued Expenses:
Salary of Support Staffs 20,000.00$ 15,000.00$
Wages of Labor 30,000.00$ 15,000.00$
Telephone & Internet 15,000.00$ 20,000.00$
Electricity 5,000.00$ 10,000.00$
Rent 10,000.00$ 80,000.00$ 20,000.00$ 80,000.00$
Total Current Liabilities 660,000.00$ 680,000.00$
Loan from Bank 200,000.00$ 200,000.00$
Total Non-Current Liabilities 200,000.00$ 200,000.00$
TOTAL LIABILITIES 860,000.00$ 880,000.00$
NET ASSETS 610,000.00$ 820,000.00$
EQUITY:-
Owner's Capital 600,000.00$ 800,000.00$
Add: Net Profit for the Year 138,000.00$ 200,000.00$
Less :Dividend Paid 78,000.00$ 230,000.00$
TOTAL EQUITY 660,000.00$ 770,000.00$
2018 2019
Projected Balance Sheet

Particulars 2018 2019
Cash Flow from Operating
Activities
Sales Revenue 1,200,000.00$ 1,440,000.00$
Salary to Support Staffs -150,000.00$ -180,000.00$
Wages to Labor -80,000.00$ -60,000.00$
Electricity -50,000.00$ -70,000.00$
Repair and Maintainence -40,000.00$ -50,000.00$
Salary of Cleaner -30,000.00$ -45,000.00$
Legal Fees & Registration -150,000.00$
Software Installation -50,000.00$ -50,000.00$
Rent for Offi ce Floor -50,000.00$ -70,000.00$
Advertisement -20,000.00$ -20,000.00$
Misc. Expenses -50,000.00$ -60,000.00$
Tax Payment -52,000.00$ -145,000.00$
Total Cash Inflow/(Outflow)
from Operating Activities 478,000.00$ 690,000.00$
Cash Flow from Investing
Activities
Equipment -150,000.00$ -255,000.00$
Furniture -120,000.00$ -360,000.00$
Total Cash Inflow/(Outflow)
from Investing Activities -270,000.00$ -615,000.00$
Cash Flow from Financing
Activities
Additional Capital 160,000.00$ 100,000.00$
Loan from Bank 200,000.00$ 200,000.00$
Interest Expense -40,000.00$ -145,000.00$
Total Cash Inflow/(Outflow)
from Operating Activities 320,000.00$ 155,000.00$
Net Cash Increase/Decrease 528,000.00$ 230,000.00$
Add : Opening Balance 100,000.00$ 628,000.00$
Closing Cash Balance 628,000.00$ 858,000.00$
Projected Cash Flow Statement

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