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Year 1 Sales Cost of Sales (See Schedule 1) Gross Profit Operating Expenses: Marketing Expenses (Schedule 2) Administrative Expenses (Schedule 3) Total Net Income 100 60 40 20 10 30 10
Year 2 120 70 50 27 16 43 7
Total
Year 1 Variable Cost Raw Material Labor Overhead Sub-total Fixed Cost Labor Overhead Sub-total 15 26 11 52
Year 2 18 31 13 62
Projection Year 3 22 37 16 75
Year 4 26 45 19 90
Year 5 31 54 23 108
5 3 8
5 3 8
5 3 8
5 3 8
5 3 8
Total
60
70
83
98
116
Assumptions: 1. Sales is increase of 20% annually 2. Overhead is comprise of 50% Depreciation expense, non-cash transactions 3. Breakdown of Cash and Non-Cash Transaction are as follows: Year 1 53 7 60 Year 2 63 7 70 Year 3 76 7 83 Year 4 91 7 98 Year 5 109 7 116
Year 1 Variable Cost Commission Supplies Miscellaneous Sub-total Fixed Cost Advertising Fee Salaries and Wages Sub-total 8 7 2 17
Year 2 9 8 2 19
Projection Year 3 10 9 3 22
Year 4 11 11 3 25
Year 5 12 13 4 29
1 2 3
5 3 8
5 3 8
5 3 8
5 3 8
Total
20
27
30
33
37
Year 1 Variable Cost Utilities Supplies Miscellaneous Sub-total Fixed Cost Rental Salaries and Wages Sub-total Total 2 4 1 7
Year 2 2 5 1 8
Projection Year 3 3 6 1 10
Year 4 3 7 2 12
Year 5 4 8 2 15
1 2 3 10
5 3 8 16
5 3 8 18
5 3 8 20
5 3 8 23
Year 1 Cash flow form Operations Inflow Cash Sales Outflow Payment to Cost of Sales Payment to Marketing Expenses Payment to Administrative Expense Total Net Cash Flow form Operations
Year 2
Projection Year 3
Year 4
100
120
144
173
53 20 10 83 17
63 27 16 107 14
76 30 18 124 20
91 33 20 144 29
Cash flow from Investing Inflow Cash Sales Outflow Investing to Equipment and Machineries Net Cash Flow form Investing Cash flow from Financing Activities Inflow Investment Outflow Dividends Net Cash Flow form Investing
350 (350)
355
355
22
14
20
29
Year 5
207
109 37 23 168 39
39
Beg. ASSETS Cash Inventories Machineries and Equipment Less: Accumulated Depreciations Total Assets LIABILITIES Trade Payable STOCKHOLDER EQUITY Capital Stock Retained Earnings Total Stockholder Equity
Year 1
5 15 350 370
370 370
370 10 380
370 17 387
370 30 400
370
380
387
400
on Year 4 Year 5
370 52 422
370 84 454
422
454