Financing BPL

8/2/2019 Financing BPL

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Financial Analysis

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I. Analysis for Cash Flow Forecast

II. B.E.P Break Even Point

III. Income Statement

IV. Balance Sheet


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Cash Flow Forecast


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Analysis for cash flow forecast

Capital: 5 owners, each contributes 100.000.000 VND to the

business which is 500.000.000 VND in total

In April , we use 120,000,000 VND in our capital to rent our

office for 6 months

So in the first Month we running our business , our capital equal

to 380,00,00VND

Sales is divided into periods that suit customer demand which is :.

o May

May is the first month we run our business , so we

expected to sales 145,200,000 VND in total and the

commission will be equal to 20% of the sales

=145,200,00*20% = 29,040,000VND . So total income

after first month will be equal to Sales +

Commission+Capital = 145,200,000 + 29,040,000

+380,000,000 = 554,240,000

o June

After one month , we will have a little reputation among

students and their parents , so we expected to sales205,040,000 VND in total , after plus commission , our

total income of June is 246,048,000VND

o July & August


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July is the month we will focus the most . Because

student is graduated in July , so the needs of Internship

and Work & Travel will raise in July , more than that ,

most of the university in foreign country starts theirsemester in September . Its mean the needs of Self-

financed study will raise too. So we expected the sales is

346,720,000 VND , after plus commission , our total

income of July is 416,064,000 VND and total income of

August is 271,480,000 VND

o From September toMarch

Sales rate will be dropped , but stable in low rate , from

118,000,000 VND to 157,000,000 VND

o FromApril

Start to regain the rate , expected sale is 209,440,000

VND

So we expected total sale after first yearrunning business is

2,079,000,000 VND

Salary of the staff will be like this :

o Director : 5,000,000 VND

o HR Manager : 5,000,000 VND

o Accounting and Financing Manager : 5,000,000 VND


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o IT Support Manager : 5,000,000 VND

o Consultants : 5,000,000 VND

o

Security : 3,000,000 VND

Total : 38,000,000 VND/Month

7% of the Sales will be add to the Salary to encourage

the staff working harder .

Insurance will be equal to 17% total of the salary

o Example :

Insurance = 38,000,000 * 17% = 8,187,880 VND

May is the first month we running our business , this also mean we

have to spend money forEquipment like computers , air conditions

, tables , chairs so the expense equal to 86,000,000 VND

Refurbishmentequal to 20,000,000 VND , we will separate the

money into two term which we pay each 6 months .

Stationary cost in the first month will equal to 3,000,000 VND ,

because we dont have much customers , so the cost of paper and


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other things will be cheaper than the next months , when we have

more customer . In the future , our Stationary cost will be from

4,000,000 VND to 5,000,000 VND

Because our office is small , so the cost ofutility is small too, its

will be from 3,000,000 VND to 5,000,000 VND

Our business requires to communicate with many people and

universities , so the cost of the Telephone will be about 4,000,000

VND in the first two months , but in the future , it will cost us about

8,000,000 VND per Month [Telephone cost include Directors

telephone cost ]

In one year we have five events , so that we willpay bonus salary

for each event like this :

o Childrens Day : 3 Staff have kids , so we will pay 300,000

VND for each Staff

= 300,000 x 3 = 900,000 VND

o Independent Day : 600,000 VND/ Person

= 600,000 x 8 = 4,800,000 VND

o New Year : 2,000,000 VND/ Person

= 2,000,000 x 8 = 16,000,000 VND


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o Tet : Everyone in company will get one month salary for

bonus and plus 2,500,000 VND in total

= 38,000,000 + 2,500,000 x 8 = 58,000,000 VND

o 30/4-1/5 : 450,000 VND/Person

= 450,000 x 8 = 3,600,000 VND

Rent

o

Rent is annually paid at 120.000.000 VND

o Rent is paid in 6 month period: October and April

Advertising

o In first month , when we need more reputations , so we

expected the advertising cost is 30,000,000 VNDo In the future , we will spend from 10,000,000 VND to

20,000,000 VND each Month for advertising

Opening balance of the first year:

o 246,000,000 VND

Closing balance after one year:

o 1,606,209,900 VND


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Break Even Point

B.E.P = Fixed Cost / ( Average Selling Price per person Average

Variable Cost per person)

= 1,132,530,000 / ( 11,165,000 - 6,380,000 )

= 237 [customers]

Cusomer/Month : 20 Customers

Sale/Month : 125,836,667

Sale/Year : 1,510,040,000

Volume of sale over the first trading year:

Month May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar A

ales

Customers]

7 15 21 23 20 22 19 28 25 28 22 2

=> Total sales of the year is 254 customers

According to the figure shown above, Our company will break even

after almost one year of running. That means S&R will achieve the

B.E.P after the 15th

April .


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Documents

Financing BPL