Thesis- Business strategy - Management

Radomir
FinancialPart_sample11.xlsx

Initial Investment

Initial Budget (write here your initial investements, your capital requirements)
Straight line depreciation mode used
Sales Quarters: Depreciation annualy: (write here the depreciations. Be careful: select your years of depreciation)
Acquirement of the building: 120,000.00 € Annual Depr. Years
Land 50,000.00 € Acquirement of the building: 6,000.00 € 20 (be careful, I have the usual depreciation
Equipment: 40,000.00 € Land 0.00 € periods for most assets. If you have sth
Development of the program: 2,000.00 € Equipment: 4,000.00 € 10 else in mind, plug it in here)
Training: 1,000.00 € Development of the program: 250.00 € 8
Advertising 50,000.00 € Training: 500.00 € 2
Medical Inventory 6,000.00 € Advertising 0.00 €
Licence: 1,000.00 € Medical Inventory 0.00 €
Machinery: 85,000.00 € Licence: 200.00 € 5
Machinery: 8,500.00 € 10
Total: 355,000.00 €
(any other depreciated fixed asset)
Loan (are you going to take a loan? How much and at what rate?) Annual depreciation expenses 10,250.00 €
Initial Loan 100,000.00 €
Interest rate 8%
Years 6
Annual payments 21,631.54 €

Projected Income Statement

January February March April May June July August September October November December Total
Sales 10,000.00 € 10,000.00 €
Cost of goods sold 500.00 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € 500.00 €
Gross Profit 9,500.00 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € 9,500.00 €
- 0 €
Expenses - 0 €
Administrative 50.00 € 50.00 €
Selling 50.00 € 50.00 €
Salaries 724.50 €
Advertising 83.33 € 83.33 €
Other 20.00 € 20.00 €
Total Expenses 927.83 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € 927.83 €
Operating Profit 8,572.17 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € 8,572.17 €
Financial Expenses 1,802.63 € 1,802.63 €
(taken from II sheet)
Depreciation Expenses 854.17 € 854.17 €
(taken from II sheet)
Earnings before Taxes 5,915.37 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € 5,915.37 €
Taxes 1,478.84 € 1,478.84 €
(what is your tax rate?) 25%
Net Profits After Tax 4,436.53 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € 4,436.53 €
Cost of goods Sold 5% (write here the % of your gross cost)

Overheads

Overhead (here you will give an analysis of your fixed annual expenses)
(in Greece we have 14 payments)
Annual Monthly Salaries: (you decide how many and how much)
Electricity 1,000.00 € 83.33 € nominal real People Monthly Months Annualy
Water 1,000.00 € 83.33 € Manager 100 135 1 135 € 14 1,890 €
Advertising 1,000.00 € 83.33 € Supervisor 80 108 2 216 € 14 3,024 €
Salaries: 8,694.00 € 724.50 € Secretary 60 81 1 81 € 14 1,134 €
Food and catering 1,000.00 € 83.33 € Workers 50 67.5 1 68 € 14 945 €
Utilities 1,000.00 € 83.33 € Assistants 45 60.75 2 122 € 14 1,701 €
Other 1,000.00 € 83.33 €
Total: 8,694 €
Total: 14,694.00 € 1,224.50 €
Utilities
Rent 500.00 € (in the utilities include rent, electricity, water, heating etc)
Electricity 200.00 €
Water 100.00 €
Heating 100.00 €
Other 100.00 €
Total: 1,000.00 €

Cash Flow Statement

January February March April May June July August September October November December Total
Cash Sales 1,000.00 € 1,000.00 €
Other cash inflows 200.00 € 200.00 €
Total inflows 1,200.00 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € 1,200.00 €
Cost of goods 500.00 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € 500.00 €
Other purchases 100.00 € 100.00 €
Salaries 724.50 € 724.50 € 724.50 € 724.50 € 724.50 € 724.50 € 724.50 € 724.50 € 724.50 € 724.50 € 724.50 € 724.50 € 8,694.00 €
Utilities 83.33 € 83.33 € 83.33 € 83.33 € 83.33 € 83.33 € 83.33 € 83.33 € 83.33 € 83.33 € 83.33 € 83.33 € 1,000.00 €
Other 1 10.00 € 10.00 €
Other 2 10.00 € 10.00 €
Taxes 1,478.84 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 € - 0 €
Total outflows 1,427.83 € 807.83 € 807.83 € 807.83 € 807.83 € 807.83 € 807.83 € 807.83 € 807.83 € 807.83 € 807.83 € 807.83 € 10,314.00 €
Initial Cash Balance 30,000.00 € 29,772.17 € 28,964.33 € 28,156.50 € 27,348.67 € 26,540.83 € 25,733.00 € 24,925.17 € 24,117.33 € 23,309.50 € 22,501.67 € 21,693.83 €
Ending Cash Balance 29,772.17 € 28,964.33 € 28,156.50 € 27,348.67 € 26,540.83 € 25,733.00 € 24,925.17 € 24,117.33 € 23,309.50 € 22,501.67 € 21,693.83 € 20,886.00 € 20,886.00 €
1. You have to distinguish between your cash and credit sales (if any)
2. You have to include any other cash inflows that may take place
3. You have to include all your cash outflows. Be careful, not all expenses are in cash, e.g. depreciation
4. You also have to take into consideration your initial (starting) cash balance

Projected IS years

year 1 year 2 year 3 year 4 year 5
Sales 10,000.00 €
Gross Profit 9,500.00 €
Operating Profit 8,572.17 €
Net Profit 4,436.53 €
(here you will give the estimate of the annual change in your figures)
Dividends 2,233.40 €
Retained Earnings 1,500.00 €
Reservses 703.13 € - 0 € - 0 € - 0 € - 0 €
(you will plug in the level of dividends you will give every year. The remaining goes to RE & R below)
Cash balance 20,886.00 €
(you will estimate the annual change in your cash balance, depending on your operations)
Depreciation
Acquirement of the building: 6,000.00 €
Land - 0 €
Equipment: 4,000.00 €
Development of the program: 250.00 €
Training: 500.00 €
Advertising - 0 €
Medical Inventory - 0 €
Licence: 200.00 €
Machinery: 8,500.00 €
(this is the 1st year depreciation. It is based on the first sheet. You have to plug in the rest years,
depending on your annual fixed assets developments and changes, if any)

Balance Sheet

Balance Sheet
Assets: Equity & Liabilities
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
Current Assets: Equity:
Cash 20,886 € - 0 € - 0 € - 0 € - 0 € Paid in capital 310,000 € 310,000 € 310,000 € 310,000 € 310,000 €
Accounts Receivable 31,506 € 51,513 € 71,519 € 91,525 € 111,532 € Reserves 703 € - 0 € - 0 € - 0 € - 0 €
Inventory Retained Earnings 1,500 € - 0 € - 0 € - 0 € - 0 €
Total CA 52,392 € 51,513 € 71,519 € 91,525 € 111,532 € Total Equity (BV) 312,203.13 € 310,000.00 € 310,000.00 € 310,000.00 € 310,000.00 €
Fixed Assets: Long term Liabilities:
Land 50,000.00 € - 0 € - 0 € - 0 € - 0 € Bank loan
Net Buildings 114,000 € - 0 € - 0 € - 0 € - 0 € Bond
Net Machinery 76,500 € - 0 € - 0 € - 0 € - 0 € Total LT - 0 € - 0 € - 0 € - 0 € - 0 €
Equipment 36,000 € - 0 € - 0 € - 0 € - 0 €
other tangible net - 0 € - 0 € - 0 € - 0 € - 0 € Short term Liabilities:
Net Intangible 800 € - 0 € - 0 € - 0 € - 0 € Suppliers
other intangible net - 0 € - 0 € - 0 € - 0 € - 0 € Short term borrowings
Acounts Payable
Total FA 277,300 € - 0 € - 0 € - 0 € - 0 € Salaries Payable
Taxes Payable
Dividends Payable
other Payable
Total ST - 0 € - 0 € - 0 € - 0 € - 0 €
TOTAL ASSETS 329,692 € 51,513 € 71,519 € 91,525 € 111,532 € TOTAL EQUITY+DEBT 312,203 € 310,000 € 310,000 € 310,000 € 310,000 €
1. Be careful with the Fixed Assets and their depreciation. In the Balance Sheet you report net assets (less the accumulated depreciation)
2. In case you increase (buy) your fixed assets you have to re-estimate your depreciation and net values
3. Take into consideration your annual retained earnings, your initial capital, your reserves and decide how you will treat your Equity capital (book value) in total
4. The level of the Accounts Receivable depends on your operations, i.e. how much is the percentage of the sales in credit
5. The same applies for Accounts Payable, respectively. You also decide the rest Payables, i.e. their end of the year balance
6. You plug in your initial capital, and also any Increase in Capital (issue of new shares) in case you decide to capitalize your earnings
7. Needless to say that both sides have to be equal. Most probably expect to have problems with this, for the simple reason
that you do not (and cannot) apply a double entry (credit-debit) system on your estimations. Try to play around with your numbers
and increase/decrease some soft accounts, i.e. receivables-payables
Generallly: The Accounts reported here (and in the rest of the sheet) are just the basic. They are not necessarily the ones you will use.
You may add or remove any accounts, according to your indiviual plan and needs

Ignore this! No B/S needed