WEEK 3: COURSE PROJECT ACTIVITY
whtifields
CourseProjectBudgetProposal-1.docxWireless World
Budget Proposal
for
[enter years here]
BUSN278
Summer
Professor Alan Hansen
DeVry University
Table of Contents
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Section |
Title |
Subsection |
Title |
Page Number |
1.0 |
Executive Summary |
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2.0 |
Sales Forecast |
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2.1 |
Sales Forecast |
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2.2 |
Methods and Assumptions |
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3.0 |
Capital Expenditure Budget |
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4.0 |
Investment Analysis |
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4.1 |
Cash Flows |
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4.2 |
NPV Analysis |
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4.3 |
Rate of Return Calculations |
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4.4 |
Payback Period Calculations |
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5.0 |
Pro Forma Financial Statements |
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5.1 |
Pro Forma Income Statement |
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5.2 |
Pro Forma Balance Sheet |
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5.3 |
Pro Forma Cash Budget |
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6.0 |
Works Cited |
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7.0 |
Appendices |
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7.1 |
Appendix 1: [description] |
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7.2 |
Appendix 2: [description] |
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(Please put page numbers in the last column of the table of contents above, because they apply to your finished assignment. Do this after your project is complete. Remove this text and all text that is in italics in this template when finished with your project.)
(Also, please submit your Excel spreadsheet that shows your supporting calculations.)
1.0 Executive Summary
The business selected for startup is Wireless World – Wireless Device Retail store, only of the most high tech of its type in the region. The business will be offering a wide range of unique wireless products, which are rare and are consumer focused, as the technology and the performance delivered by these devices is the ultimate reason a class of customers are attracted toward the stores which are dealing in such products. The business will be mainly operating through flagship stores in the big shopping malls, where such customer traffic is attracted to these products.
As the business will be in startup phase the budget will help the business is achieving the profitability as well help in analyzing the sales and cash flow volume, as that will support the planning of cash flows of business.
The budget will be mainly consistent of the initial investment the business owner will be required to place, the NPV projections states that the business will be able to be valued at $xxx, along with handsome payback period, and IRR.
2.0 Sales Forecast
Briefly introduce the sales forecast section.
2.1 Sales Forecast
The 5 years sales plan is mentioned below which mainly includes the business growth in sales, consistently throughout the 5 years, this comprise 5% straight growth throughout, and a price inflation adjustment of 2% each year, assuming the product demand would remain steady.
The main assumption behind the fact that product demand would remain steady is that the manufacturing businesses bring on a new product each year and they attract a specific customer base, that customer base would keep on increasing every year.
Moreover, there would be another revenue stream which is servicing of the sold / similar products, which is assumed that there would be 15% of sales volume each year which would be serviced, that could be company customer or walk in customer. The servicing price would also increase as per inflation adjustment.
The sales volume and servicing volume along with prices is assumed to be on average basis throughout the year.
2.2 Methods and Assumptions
The sales forecast is mainly based over the following assumptions, and the detailed working is annexed below.
1. There would be a standard increase in sales volume each year by 5%.
2. There would be a standard price inflation adjustment each year by 2%.
3. Each year there would be 15% of the sales volume, in servicing cliental, this can be company customer or walk in customer.
4. The sales, servicing, and prices are assumed on average basis throughout the year, keeping in sight the specific products demand.
5. Sales is assumed to remain in growth for all 5 years, as these are the unique products, having loyal customers base, which would keep on increasing.
3.0 Capital Expenditure Budget
Here you should provide a screenshot of your capital expenditure budget, also listing the sources of data and assumptions that led to each line item in table format. Briefly describe the total investment and, if necessary, why major items are necessary to achieve the company’s strategy.
4.0 Investment Analysis
Briefly describe the NVP, IRR, accounting rate of return, and payback period for this analysis. Indicate the discount rate you used and how you arrived at it.
4.1 Cash flows
Provide an Excel spreadsheet screenshot that shows how you arrived at the net cash flows for each period in your planning horizon, and describe its highlights.
4.2 NPV Analysis
Provide a screenshot of your Excel NPV analysis here, and describe its highlights.
4.3 Rate of Return
Provide a screenshot of your IRR and accounting rate of return calculations here, and explain the highlights.
4.4 Payback Period
Provide a screenshot of your Excel calculation of the payback period for this venture.
5.0 Pro forma Financial Statements
Briefly introduce this section here.
5.1 Pro Forma Income Statement
Describe key figures and assumptions from the income statement, such as important profit or sales figures and their causes. Also, provide a screenshot of your pro forma income statement.
5.2 Pro Forma Balance Sheets
Provide a screenshot of your balance sheets and describe key figures they contain.
5.3 Pro Forma Cash Budget Provide a screenshot of the cash budget and describe the impact of the budget on cash balances.
6.0 Works Cited
List any sources you cited in the body of your report.
7.0 Appendices
NOTE: Start this section at the top of a new page.
This section of the budget proposal is where you’ll attach all of the supporting materials that you’ve referenced in the preparation of your plan and that is too detailed or extensive to be included in the body of the report. Use this page to separate the appendices from the text in the body of your report. Make certain that you update the table of contents to include the title of each exhibit in the appendix and its page number.
7.1 Appendix 1: [put a description here]
7.2 Appendix 1: [put a description here]
7.3 Appendix 1: [put a description here]
Year 1Year 2Year 3Year 4Year 5
Sales - Products500,000 535,500 573,521 614,240 657,852
Sales - Services7,500 8,033 8,603 9,214 9,868
Products - VolumeYear 1Year 2Year 3Year 4Year 5
Sales - units500.00 525.00 551.25 578.81 607.75
Avg. Price / unit1,000.00 1,020.00 1,040.40 1,061.21 1,082.43
Services - VolumeYear 1Year 2Year 3Year 4Year 5
Service units75.00 78.75 82.69 86.82 91.16
Avg. Price / Service100.00 102.00 104.04 106.12 108.24
Sales - ( $ )Year 1Year 2Year 3Year 4Year 5
Sales - Product ( $ )500,000 535,500 573,521 614,240 657,852
Sales - Services ( $ )7,500 8,033 8,603 9,214 9,868
