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Development of Bath Products Business Using Financials and Bank Loan

   

Added on  2020-04-13

7 Pages974 Words179 Views
VISION STATEMENT“To provide quality bath products to enhance customer satisfaction and to strengthenbusiness position in market.”

FINANCIALSCapital structure of firm will comprise own investment and bank loan and collected funds will be invested for start-up of production activitiesand establishing business in an effective manner. Projected monthly revenue of business will be $29167 and same will be increased by 10% onannyal basis and cost of sales will be 40%. Cash flow statement Year 1year 2year 3year 4year 5Cash in the beginning$0.00 $545,307.00 $899,607.00 $1,292,407.00 $1,727,557.00 Cash inflowCapital invested$120,000.00 $0.00 $0.00 $0.00 $0.00 Bank loan$152,000.00 $0.00 $0.00 $0.00 $0.00 Cash sales$350,000.0 $385,000.0 $423,500.0 $465,850.0 $512,435.0 Total inflow$622,000.00 $930,307.00 $1,323,107.00 $1,758,257.00 $2,239,992.00 Cash outflowSecurity deposit$3,000.00 Rent $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 Salaries$5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 Insurance$6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 Permits and licensing for production$5,839.00 $0.00 $0.00 $0.00 $0.00 Accounting costs$1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 Ordering and payment technology$21,231.00 $0.00 $0.00 $0.00 $0.00 Signage$15,923.00 $0.00 $0.00 $0.00 $0.00 Fliers ads and coupons$7,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00 Public relation services$6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 Total cash outflow$76,693.00 $30,700.00 $30,700.00 $30,700.00 $30,700.00

Cash in the end$545,307.00 $899,607.00 $1,292,407.00 $1,727,557.00 $2,209,292.00 Income statementSales forecastIn accordance with the forecasted figures average cost of product will be $5 and it is expected the business will sell approximately 70000products on annual basis. Sales volume will be constant throughout the year as it is toiletry item to be used on regular basis. Although sale ofbath bombs will be low in winter season in comparison to summer season. Sales is expected to be increased by 10% on an annual basis. Further;annual and monthly projection of sales is as follows:JanFebMarAprilMayJuneJulyAugSeptOctNovDec$30,000 $32,000 $30,000 $38,000 $35,000 $35,000 $30,000 $30,000 $25,000 $25,000 $20,000 $20,000 Year 1year 2year 3year 4year 5Sales$350,000.0 $385,000.0 $423,500.0 $465,850.0 $512,435.0

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