Financial Plan and Report for Cosmos Café

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

Student Name Student Id
Table of Contents
Introduction:...............................................................................................................................2
Part 1:.........................................................................................................................................3
Financial Plan:............................................................................................................................3
Start up costing...........................................................................................................................3
Forecasted profit and loss account.........................................................................................3
Cash flow forecast for the Cosmos café based on the estimated profit and loss account......5
Balance sheet of Cosmos Café...............................................................................................5
Computation of the breakeven point......................................................................................6
Part 2:.........................................................................................................................................8
Financial Report.........................................................................................................................8
Part 3:.......................................................................................................................................12
Conclusion:..............................................................................................................................17
Part-4........................................................................................................................................17
References................................................................................................................................18

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Introduction:
With the ramified economic changes, every entrepreneur needs to analyse all the
internal and external factors before starting up new business. The start-up business which has
been undertaken in this report is the café services in Australia. The name of the business
would be Cosmos Café which will specialize in offering different types of coffees; pastas,
sandwiches, and cutlet. This Cosmos Café will win over the market by developing the core
competency in cost leadership and product differentiation strategy.

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Part 1:
Financial Plan:
The financial plan of the company is accompanied with the start-up cost, profit and loss and
cash flow statement of the company (Conway, 2013).
Start up costing
The Cosmos Café will have to bear the start up costing of AUD $ 964500. This minimum
cost which will be required to set up the Cosmos Café restaurant business in Australia.
Cosmos Café
Start up costing
Particular
Amount
($)
1 x Manager; 2 x Sales negotiators; 1 x secretary (210,000)
Rent/Rates/Insurance of Commercial Business premises (160,000)
Lease cost of restaurant (359,500)
Lease of kitchen equipment’s (300,000)
Selling and Corporate Marketing Costs (250,000)
Depreciation of Plant and equipment (15,000)
Head Office Costs (20,000)
working capital 350000
Total (964,500)
The start-up cost for the Cosmos café would be AUD $ 964500 which will be 30% financed
by the bank and 40% from the private capital and 30% will be invested by the promoters.
Forecasted profit and loss account
The profit and loss account of the Cosmos Café is based on the sales and required expenses
estimated for the
Budgeted Profit and Loss Account for Cosmos Café
2019
Revenues
(Amount in
$)
Sales of food 2100000
Other revenues 200000
Total 2300000
EXPENDITURE
Variable Costs -630000
Fixed Costs

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1 x Manager; 2 x Sales negotiators; 1 x secretary (210,000)
Rent/Rates/Insurance of Commercial Business premises (160,000)
Lease cost (359,500)
Lease of kitchen equipment’s (300,000)
Selling and Corporate Marketing Costs (250,000)
Depreciation of Plant and equipment (15,000)
Head Office Costs (20,000)
Total Fixed Costs (1,314,500)
TOTAL COSTS (1,944,500)
PROFIT/(LOSS) FOR YEAR 355,500
Return on investment 37%

Student Name Student Id
Cash flow forecast for the Cosmos café based on the
estimated profit and loss account
Year
Particular 2019 2020 2021 2022 2023 2024 2025 2026
Cash inflow
1680
000
22680
00
249480
0
27442
80
301870
8
332057
8.8
365263
6.68
401790
0.348
Cash
outflow of
Variable cost
-
5040
00
-
68040
0 -748440
-
82328
4
-
905612
.4
-
996173
.64
-
109579
1.004
-
120537
0.104
Fixed cost
investment
-$
1,329
,500
-$
1,329,
500
-$
1,462,4
50
-$
1,608,
695
-$
1,769,5
65
-$
1,946,5
21
-$
2,141,1
73
-$
2,355,2
90
Total cash
outflow
-$
825,5
00.00
-$
649,10
0.00
-$
714,010
.00
-$
785,41
1.00
-$
863,95
2.10
-$
950,34
7.31
-$
1,045,3
82.04
-$
1,149,9
20.25
Cash flow
from the
business
$
854,5
00.00
$
1,618,
900.00
$
1,780,7
90.00
$
1,958,
869.00
$
2,154,7
55.90
$
2,370,2
31.49
$
2,607,2
54.64
$
2,867,9
80.10
*Present
value factor
@12%
$
0.89
$
0.80
$
0.71
$
0.64
$
0.57
$
0.51
$
0.45
$
0.40
Present
Value
$
762,9
46.43
$
1,290,
577.17
$
1,267,5
31.15
$
1,244,
896.66
$
1,222,6
66.37
$
1,200,8
33.04
$
1,179,3
89.59
$
1,158,3
29.06
Total(B)
$
9,327,1
69.46
Notes
The total sales of the Cosmos will be accompanied with the 80% of cash sales and 20% of
sales will be on credit.
Variable cost will have 80% cash outflow and 20% of the cash outflow will be related to last
year.
Variable cost is determined on the basis of the 30% of the total sales (Conway, 2013).
Balance sheet of Cosmos Café
Assets 2019
Current Assets
Cash $
350,000.00
Accounts receivable $