week 7 redo
Jada8600
WK7MarketingBudget2.docxRunning Head: WK7 MARKETING BUDGET 1
Wk7 MARKETING BUDGET 14
WK 7 Marketing Budget
Student
Professor
Institution
Date
WK7 Marketing Budget
Introduction
Jadeddreams is a company that focuses on Customized cereal bar treats. These bars are created for the people that love cereal products or entities that are always on the run and have no time to prepare or take the traditional breakfast. These bars are substitute products that are fit for the people working under pressure such that they have no time to settle as they are already occupied.
Company Overview
. It will serve all people, but to be more specific, it will be for women and children because there are different preferences and tastes. All those people who are always busy as they are undertaking their work and, in most case,, they do not have time sometimes to cook for their families, and they are forced to take these cereals in the bars.
The best location for this kind of company is at urban centres, whereby the majority of the people are busy with their work, and they do not have time to cook. In urban areas, it is where many people almost everybody is very busy with work, (Bchir, et al, 2018)
Most people see this kind of company as the people who have a high lifestyle and a good paying salary. I think it is just a myth because all people can buy this kind of cereal. After all, it has different tastes for each one of them. However, most people will be those with a high lifestyle and have some income since this food most of them sees it as a leisure food that is not to be eaten all the time, (Carvalho, et al, 2018).
For this, I can say that my esteemed customers will be those who are fun-seeking. This type of food is mostly eaten when people are going to have fun and not when they are going to work. For sensitive description, the commodity will be at a price that will be pocket friendly
The pre-operation Cost
These are the expenses that are incurred for the business stock
|
The item |
The amount |
|
License for trading |
4000 |
|
The permit for trading |
2500 |
|
Deposit for water |
3000 |
|
Deposit for telephone |
3000 |
|
Cost for Installation like the shelves |
29000 |
|
The paint |
4000 |
|
The long front table |
6000 |
|
The furniture |
18000 |
|
The transport |
8000 |
|
Total pre-operation cost |
77500 |
Working Capital
The working capital would be the funds that shall be used in day-to-day operations which will be estimated working capital
|
Item |
2019 |
2020 |
2021 |
|
The food stock and others |
70000 |
90000 |
100000 |
|
The debtors |
120000 |
10000 |
8000 |
|
Cash at hand |
40000 |
60000 |
50000 |
|
Cash at bank |
120000 |
100000 |
150000 |
|
Total |
242000 |
260000 |
308000 |
The projected profit and loss as at 31st Dec 2019
|
Item |
January |
Feb |
March |
April |
May |
June |
July |
August |
September |
October |
November |
December |
|
Flow in cash |
|
|||||||||||
|
Cash sales Collection from debtors Total cash in flow |
350,000 16,000 366,000 |
420,000 10,000 430,000 |
570,000 5,000 575,00 |
6,000 4,000 604,000 |
620,000 11,000 631,000 |
650,000 8,000 658,000 |
680,000 7,000 687,000 |
710,000 8,000 718,000 |
805,000 5,000 810,000 |
851,000 6,000 857,00 |
890,000 4,000 894,000 |
922,000 6,000 928,000 |
|
Cash outflow |
|
|||||||||||
|
Cash purchase Payment of creditors Insurance Postage Telephone Electricity Water Advertisement Tax Total cash outflow Total cash for the month |
10,000 1,000 1,200 700 600 800 500 240,000 5,000 133,800 216,200 |
150,000 3,000 1,500 800 700 400 600 26,000 7000 190,500 229,500 |
170,000 4,000 1,800 700 700 800 500 24,000 6,000 228,500 341,500 |
250,000 10,000 1,200 700 700 800 500 20,000 5,000 288,900 311,100 |
270,000 20,000 1,200 700 700 800 500 22,000 7,000 322,900 297,100 |
290,000 15,000 1,200 700 700 400 420 24,000 5,000 337,920 312,080 |
305,000 25,000 1,200 700 700 400 470 22,000 6,000 361,970 318,030 |
350,000 26,000 4,000 700 400 1,200 480 20,000 5,000 408,280 301,720 |
370,000 16,000 4,000 700 700 800 500 15,000 6,000 413,700 391,300 |
400,000 15,000 1,500 700 500 1,500 520 10,000 5,000 434,720 416,280 |
470,000 14,000 3,000 800 700 900 600 5,000 7000 502,000 388,000 |
500,000 13,000 3,000 800 700 900 600 0 3,000 522,000 400,000 |
The Proforma Income Statement
The Jadeddreams inputs Income Statement
|
Item |
Year One (2019) |
Year Two (2020) |
Year Three (2021)
|
|
Sales |
1,383,800 |
1,764,900 |
1,974,750
|
|
Cost of goods |
583,800 |
934,400 |
1,074,500
|
|
Gross profit |
800,000 |
830,500 |
900,250
|
|
Expenses
|
|
|
|
|
Expenses wages & salaries |
292,000 |
294,000 |
303,000 |
|
Rent |
12,000 |
12,000 |
12,000
|
|
Water |
5,000 |
7,500 |
38,506,850
|
|
Telephone |
3,600 |
3,200 |
12,525
|
|
Electricity |
15,800 |
4,200 |
3,755
|
|
Advertisement |
3,900 |
8,650 |
10,335
|
|
Stationery |
121,000 |
5,350 |
4,360
|
|
Postage |
8,700 |
9,000 |
9,245
|
|
Depreciation |
10,300 |
16,275 |
16,000
|
|
Interest |
18,000 |
9,225 |
18,000
|
|
Repairs |
9,700 |
382,500 |
389,620
|
|
Total expenses |
391,000 |
448,000 |
510,320
|
|
Net profit before tax |
40,900 |
44,800 |
510,320 |
|
Tax 10% |
40,900 |
403,200 |
459,297
|
|
Net profit after tax |
368,100
|
|
|
The Proforma balance sheet
The proforma balance sheet for the first three years
|
"ITEM |
YEAR 1(2019) 31/12/2019 |
YEAR 2 (2020) 31/12/2020 |
YEAR 3 (2021) 31/12/2021 |
|
CURRENT ASSETS
|
|
|
|
|
Debtors |
85,000 |
90,000 |
70,000
|
|
Stock of unfinished goods |
280,000 |
385,000 |
400,000 |
|
Total current assets
|
365,000 |
475,000 |
470,000 |
|
FIXED ASSETS
|
|
|
|
|
Machinery equipment
|
80,000 |
45,000 |
50,500 |
|
Accumulated depression |
10,000 |
9,000 |
3,500 |
|
Vehicle(cost of transport) |
20,000 |
15,000 |
8,000 |
|
Furniture and fittings
|
50,000 |
12,000 |
5,000 |
|
Depreciation |
10,500 |
1,000 |
1,000
|
|
TOTAL FIXED ASSETS |
170,500 |
84,000 |
68,000 |
|
TOTAL ASSETS |
207,000 |
559,000 |
538,000
|
|
CURRENT LIABILITIES |
|
|
|
|
Creditors |
70,000 |
65,000 |
60,000
|
|
Tax |
40,900 |
44,800 |
51,033
|
|
TOTAL CURRENT LIABILITIES |
110,900 |
109,800 |
111,033 |
|
LONG-TERM LIABILITIES |
|
|
|
|
Bank loan |
50,000 |
149,000 |
168,000
|
|
Owners’ equity |
46,100 |
400,000 |
258,967
|
|
TOTAL LONG TERM LIABILITIES |
96,000 |
549,200 |
426,967 |
|
TOTAL LIABILITIES |
207,000 |
559,000 |
538,000 |
“Gross profit=sales – total direct costs
Gross profit=1,383,800-583,800=800,000
:gross profit = 800,000
Gross profit margin = gross profit *100
Sales
Gross profit margin = 800,000*100%
1,383,800
= 57.81 %
Total expenses for one year = 291,000
Break-even – level = expenses * 100%
Gross profit margin
= 291,000 *100%
57.80%
= 503,379.20”
The desired financing
|
ITEM |
AMOUNT
|
|
Pre-operation cost
|
79,000 |
|
Workng capital |
242,000
|
|
Total desired financing
|
321,000 |
The proposed capitalizations
|
Owners contribution |
300,000 |
|
Loan from bank
|
300,000 |
|
Total investment |
600,000
|
The expected profitability ratio
“Gross profit margin = gross profit * 100
Sales
Year 2007 = 800,000 * 100%
1,383,800
= 47.06%
Year 2008 = 830,500 * 100%
1,764,900
= 45.95%
The return on equity
“Return on equity = net profit(after tax) * 100%
Owners equity
For year 2007 = 368,100 * 100%
300,000
For year 2008 = 403,200 * 100%
300,000
For year 2009 = 459,297 * 100 %
300,000
= 153.10%”
The return on investment
“Net profit (after tax)+ interest * 100%
Total investment
Year 2009 = 368,100 + 18,000 * 100 %
600,000
Year 2010= 403,200 + 16,275 * 100%
600,000
= 69.91%
Year 2011 = 459,297 + 16,000 * 100%
600,000
= 79.22%”
References
Bchir, B., Jean-François, T., Rabetafika, H. N., & Blecker, C. (2018). Effect of pear apple and date fibres incorporation on the physico-chemical, sensory, nutritional characteristics and the acceptability of cereal bars. Food Science and technology international, 24(3), 198-208.
Carvalho, V. S., & Conti‐Silva, A. C. (2018). Cereal bars produced with banana peel flour: evaluation of acceptability and sensory profile. Journal of the Science of Food and Agriculture, 98(1), 134-139.
Running Head: WK7 MARKETING
BUDGET
1
WK 7 Marketing Budget
Student
Professor
Institution
Date
Running Head: WK7 MARKETING
BUDGET 1
WK 7 Marketing Budget
Student
Professor
Institution
Date
