IV.

Financial Plan

This section will determine whether the business proposal is

feasible, visible and profitable.

Assumptions:

Population will increase 5% every year

Cost if ingredients/unit will increase 3% every year
Ending Inventory Desired Balance: 5% of the Budgeted Sales
Next year
5% increase every year in utilities
10% increase every year in advertising expense while 5%
increase every year in packaging
Salaries and wages will increase 10% annually
Estimated withdrawals will be 10% of total capital of the
current year starting in year 2
Tax expense will be 30% of net income before tax of the
current year