Professional Documents
Culture Documents
MAJOR ASSUMPTIONS
TOTAL PROJECTED COSTS
INITIAL WORKING CAPITAL REQUIREMENTS
ALTERNATIVE SOURCE OF FINANCING CONSIDERED , IF ANY
SOURCES OF FINANCING THE PROJECT
BEGINNING & PRO-FORMA FINANCIAL STATEMENTS
FINANCIAL ANALYSIS
MAJOR ASSUMPTIONS
GUIDELINES
IMPORT POLICIES
EXPORT POLICIES
TAX RATES
TAX EXEMPTIONS
PRICE CEILINGS
RELEVANT PRESIDENTIAL DECREES OR LOI
OTHER PERTINENT DATA WHICH CAN JUSTIFYTHE ASSUMPTIONS OF THE STUDY, SUCH
AS:
INDUSTRY POLICIES
PRE-FEASIBILITY STUDIES
FIXED COSTS
COST OF LAND, NOTARY FEES, REGISTRATION DUTIES, & OTHER RELATED COSTS
BUILDINGS, INCLUDING ELECTRIC & & WATER UTILITIES, FURNITURE & FIXTURES
CURRENT ASSETS
INVENTORY INVESTMENTS
- PURCHASES OF MATERIALS & SUPPLIES
- FREIGHT EXPENSES
INVENTORY RELATED COSTS
- INDIRECT & DIRECT LABOR W/ CORRESPONDING FRINGE BENEFITS
- HEAT, LIGHT , & POWER
- MAINTENANCE
- WAREHOUSING EXPENSES RELATED TO RAW MATERIALS
- MATERIALS IN PROCESS
- FINISHED GOODS
CASH CREDITS
- PRE PAID EXPENSES (COST OF INITIAL INVESTIGATIONS, PRE FEASIBILITY STUDIES,
RESEARCH & TECHNICAL STUDIES, ECONOMIC & MARKETING STUDIES, FINANCIAL &
PROFITABILITY STUDIES, DESIGN STUDIES & CONSULTING ENGINEERING FEES).
- INTANGIBLE ASSETS (PATENTS, LICENSE, GOODWILL, REPRODUCTION RIGHTS)
- OPERATING SALARIES
- WAGES & FRINGE BENEFITS
- ENGINEERING COSTS
- OPERATING TAXES
- OFFICE SUPPLIES
- COMMUNICATION FACILITIES
- OFFICE UTILITIES
- BILLING COSTS
- TRANSPORATION COSTS
- EXPENSE FOR ADVERTISING
- BORROWING COSTS
- PROVISIONS FOR UNFORESEEN COSTS
5) FINANCIAL ANALYSIS
THIS PORTION GAUGES THE PROJECTS PROFITABILITY, LIQUIDITY, CASH SOLVENCY & GROWTH OVER
TIME.
A. TEST OF LIQUIDITY
- THESE MEASURES ARE USED TO DETERMINE A FIRMS ABILITY TO MEET SHORT
TERM OBLIGATIONS, & TO REMAIN SOLVENT IN THE EVENT OF ADVERSITIES.
CURRENT RATIO =
QUICK OR ACID TEST RATIO =
LIQUIDITY OF INVENTORIES =
DEFENSIVE POSITION =
+ +
( )
B. TEST OF DEBT SERVICE
- THESE TESTS ARE EMPLOYED TO PRESENT THE PROJECTS ABILITY TO MEET LONG
TERM OBLIGATIONS
DEBT TO NETWORTH RATION =
TOTAL CAPITALIZATION RATION = &
C. TEST OF PROFITABILITY
- THESE SHOW THE OPERATIONAL PERFORMANCE & EFFICIENCY OF THE PROJECT
NET PROFIT MARGIN =
&
OPERATING PROFIT MARGIN =
GROSS PROFIT MARGIN =
RETURN ON FINANCIERS INVESTMENT =
+
&
RETURN ON OWNERS INVESTMENT =
RETURN ON COMMON STOCK EQUITY =
&
RETURN ON NET OPERATING PROFIT =
ASSET TURNOVER =
RETURN ON ASSETS, OR EARNING POWER =