Startup Costs

Item Quantity Unit Cost Total

Land Acquisition 1 $5,000.00 $5,000.00
2000 Birds broiler house construction 1 $11,000.00 $11,000.00
Tubular Feeders 40 $9.00 $360.00
12 litre font 40 $9.00 $360.00
4 litre font 40 $3.00 $120.00
Feed Trays 40 $2.00 $80.00
Broiler Heating and lighting System 1 $500.00 $500.00
Company Registration 1 $500.00 $500.00
Transport to market(1 cycle) 2000 $0.05 $100.00
Water/year (Borehole) 1 $240.00 $240.00
Repairs and Maintenance/year 1 $300.00 $300.00
Contingency Cash 1 $100.00 $100.00
Feed Kgs (1 cycle advance) 8000 $0.50 $4,000.00
Veterinary Supplies (1 cycle advance) 2000 $0.02 $40.00
Electricity/Gas 2000 $0.10 $200.00
Litter(1 cycle advance) 2000 $0.02 $40.00
Vitamins Supplements(1 cycle advance) 2000 $0.01 $20.00
Disinfectants(1 cycle advance) 2000 $0.01 $20.00
Labour (1 month advance) 2 $150.00 $300.00
Day old chicks ( 2 cycles advance) 4200 $0.75 $3,150.00
Total $26,430.00
Pro Forma Income Statement
Year 1 Year 2 Year 3
Revenue
Broiler Sales $70,000.00 $70,000.00 $70,000.00
Cost of goods sold $41,965.00 $41,965.00 $41,965.00
Gross Profit $28,035.00 $28,035.00 $28,035.00
Operating Expenses
Salaries $3,600.00 $3,600.00 $3,600.00
Water $240.00 $240.00 $240.00
Depreciation $631.00 $631.00 $631.00
Advertising $0.00 $0.00 $0.00
Repairs and maintenance $300.00 $300.00 $300.00
Contingency $700.00 $700.00 $700.00
Total Operating Expenses $5,471.00 $5,471.00 $5,471.00
Net Profit Before Tax $22,564.00 $22,564.00 $22,564.00
Tax (25%) $5,641.00 $5,641.00 $5,641.00
Net Profit After Tax $16,923.00 $16,923.00 $16,923.00
Variable Costs per Cycle
Quantity Unit Cost Total
Feed Kgs $ 8,000.00 $0.50 $4,000.00
Veterinary Supplies $ 2,000.00 $0.02 $40.00
Vitamins Supplements $ 2,000.00 $0.01 $20.00
Disinfectants $ 2,000.00 $0.01 $20.00
Litter $ 2,000.00 $0.02 $40.00
Day old chicks $ 2,100.00 $0.75 $1,575.00
Transport to market $ 2,000.00 $0.05 $100.00
Electricity/Gas $ 2,000.00 $0.10 $200.00
Total $5,995.00
Breakeven Analysis Value Payback Period Value
Selling Price/Unit $5.00 Initial Investment $26,430.00
Variable Cost/Unit $3.00 Net Cash flow year 1 $32,005.00
Annual Fixed Costs $5,471.00 Payback Period 0.83
Breakeven point 2732
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Opening Balance $0.00 $32,005.00 $49,559.00

Cash Sales $70,000.00 $70,000.00 $70,000.00

Subtotal Cash from Operations $70,000.00 $70,000.00 $70,000.00

Additional Cash Received

Start-up Capital $26,430.00 $0.00 $0.00
Subtotal Cash Received $26,430.00 $0.00 $0.00

Cash Expenditures
Feed, Water and Vet purchases $41,965.00 $41,965.00 $41,965.00
Operating Expenses $4,840.00 $4,840.00 $4,840.00
Subtotal Spent on Operations $46,805.00 $46,805.00 $46,805.00

Additional Cash Spent

Taxes $0.00 $5,641.00 $5,641.00
Loan Repayment $0.00 $0.00 $0.00
Bank Overdraft Repayment $0.00 $0.00 $0.00
Purchase Fixed Assets $17,620.00 $0.00 $0.00
Subtotal Additional Cash Spent $17,620.00 $5,641.00 $5,641.00

Net Cash Flow $32,005.00 $17,554.00 $17,554.00

Cash Balance $32,005.00 $49,559.00 $67,113.00
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Long Term Assets
Land $5,000.00 $5,000.00 $5,000.00
Buildings $11,000.00 $11,000.00 $11,000.00
Equipment $1,620.00 $1,620.00 $1,620.00
Accumulated Depreciation -$631.00 -$1,262.00 -$1,893.00
Total Long Term Assets $16,989.00 $16,358.00 $15,727.00
Current Assets
Cash $32,005.00 $49,559.00 $67,113.00
Accounts Receivable $0.00 $0.00 $0.00
Inventory $0.00 $0.00 $0.00
Other Current Assets $0.00 $0.00 $0.00
Total Current Assets $32,005.00 $49,559.00 $67,113.00
TOTAL ASSETS $48,994.00 $65,917.00 $82,840.00

EQUITY AND LIABILITIES

Equity
Share Capital $26,430.00 $26,430.00 $26,430.00
Retained Earnings $16,923.00 $33,846.00 $50,769.00
Total Equity $43,353.00 $60,276.00 $77,199.00
Liabilities
Current tax payable $5,641.00 $5,641.00 $5,641.00
Accounts Payable $0.00 $0.00 $0.00
Other Liabilities $0.00 $0.00 $0.00
Total Liabilities $5,641.00 $5,641.00 $5,641.00

TOTAL EQUITY AND LIABILITIES $48,994.00 $65,917.00 $82,840.00