FinancialPlan_2013 Version_Prof Dr Ismail.xlsx

BUSINESS PLAN

FINANCIAL

© 2008 ISMAIL AB.WAHAB, MALAYSIAN ENTREPRENEURSHIP DEVELOPMENT CENTRE (MEDEC), UNIVERSITI TEKNOLOGI MA

PLAN

PLAN

FinePlanner

Complimentary Edition

FINANCIAL PLAN FOR SMALL AND MEDIUM BUSINESSES

©2010 Ismail Ab.Wahab, Malaysian Academy of SME & Entrepreneurship Development (MASMED), Universiti Teknologi MARA

USER'S GUIDE

Name of Business/Company

….Please type your company's name here….. Select Language/Pilih Bahasa

Form of Business

FORECASTING Capital Expenditure Projections Pre-Operating and Working Capital Projections

English

Private Limited Company

Sales and Purchase Projections

Malay

Sole-Proprietorship/Others

Forecasted Project Cost and Financing

SUMMARY AND SCHEDULES Planning Period

Nature of Business

3 Years

Manufacturing

5 Years

Trading/Distribution Service

Start Year of Projection

Total Project Cost Sources of Financing Monthly Loan Payment Monthly Hire-Purchase Payment

Start Month of Projection January February March April May June BRIEF REPORTS July August Cash Balance September Income October November Total Assets & Liabilities December

Total Owners' Equity

Project Cost and Sources of Finance Summary Fixed Assets and Depreciation Schedules Loan Amortization Schedule

FINANCIAL REPORTS Pro-forma Cash Flow Statement Pro-forma Income Statement Pro-forma Balance Sheet Financial Performance

Time to Break-Even Paybak Period for Start-Up Fund Internal Rate of Return

Gold Award

Invention, Innovation & Design 2009 Universiti Teknologi MARA Malaysia

Bronze Award

International Invention, Innovation & Technology Exhibition (ITEX) 2009 Malaysian Invention & Design Society

ANCIAL PLAN

Academy of SME & Entrepreneurship Development (MASMED), Universiti Teknologi MARA

USER'S GUIDE FORECASTING Capital Expenditure Projections Pre-Operating and Working Capital Projections Sales and Purchase Projections Forecasted Project Cost and Financing

SUMMARY AND SCHEDULES Project Cost and Sources of Finance Summary Fixed Assets and Depreciation Schedules Loan Amortization Schedule

FINANCIAL REPORTS Pro-forma Cash Flow Statement Pro-forma Income Statement Pro-forma Balance Sheet Financial Performance

BRIEF REPORTS Time to Break-Even Paybak Period for Start-Up Fund Internal Rate of Return

International Invention, Innovation & Technology Exhibition (ITEX) 2009 Malaysian Invention & Design Society

Complimentary Edition

CAPITAL EXPENDITURE PROJECTI Anggaran Perbelanjaan Aset Tetap

….Please type your company's name here….. Capital Expenditure Types of Fixed Assets

Estimated Cost (RM)

Administrative/Organisation Land & Building

Sales/Marketing

Operations/Technical

Total

Depreciation method Straight line

F i n e P l a n n e r

© 2010 Ismail Ab.Wah

Jika menggunakan BM, sila tukar kepada "garis lurus" atau "bak

URE PROJECTION

aan Aset Tetap

Estimated Economic Life (years)

5 5 5 5 5 5 5 5 5 5 5 5 siah Main Menu

© 2010 Ismail Ab.Wahab MASMED UiTM

, sila tukar kepada "garis lurus" atau "baki berkurang"

PRE-OPERATING & WORKING CAPIT

Complimentary Edition

….Please type your company's name here…..

Pra-Operasi & Modal Kerja

Pre-Operating & Working Capital Projections Pre-Operating & Incorporation Costs (one-off) Development Cost Business Incorporation Costs Deposit (rent, utilities, etc.) Other Pre-operating & Incorporation costs Sales & Marketing Costs (monthly)

General & Administrative Costs (monthly)

Operations & Technical Costs (monthly) Purchase of Raw Materials/Goods Carriage Inwards Salaries, Wages, EPF & SOCSO

Other Expenditure (annually)

Total Pre-Operations & Working Capital Expenditure

Annual Increase in Working Capital (if any) Year 2 Year 3

Tax Rates Year 1 Year 2 Year 3

F i n e P l a n n e r

© 2010 Ismail Ab.Wahab MASMED

RKING CAPITAL

perasi & Modal rja RM

-

10% 10% 0% 0%

25% 25% 25% 25% 25% Main Menu © 2010 Ismail Ab.Wahab MASMED UiTM

SALES & PURCHASES

Complimentary Edition

Jualan & Bellian

….Please type your company's name here….. Sales & Purchase Projections Sales Projections January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 Total 2015 Total 2016 Total 2017

RM -

Sales Collections In the month of sales One month after sales Two months after sales Ending Inventory of Raw Materials

End of 2015 End of 2016 End of 2017

Purchase Projections January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 Total 2015 Total 2016 Total 2017

Purchase Payments 100%

0% 0%

In the month of purchase One month after purchase Two months after purchase

RM

Ending Inventory of Finished Goods

End of 2015 End of 2016 End of 2017

Fi n e Pl a n n er

© 2010 Ismail Ab.Wahab ME

RM -

s 100%

0% 0% RM

Main Menu

© 2010 Ismail Ab.Wahab MEDEC UiTM

Complimentary Edition

PROJECT IMPLEMENTATION COST Kos Pelaksanaan Projek

….Please type your company's name here….. Project Implementation Cost Capital Expenditure

Cost

Sources of Financing

Land & Building

0 Cash 0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

0

0 Cash

Working Capital

1

months

Sales & Marketing Costs (monthly)

-

Cash

General & Administrative Costs (monthly)

-

Cash

Operations & Technical Costs (monthly)

-

Cash

Pre-Operating & Incorporation Costs (one-off)

-

Cash

Other Expenditure (annually) Provision for Contingencies TOTAL

0%

Cash 0 Cash 0 Main Menu

F i n e P l a n n e r

© 2010 Ismail Ab.Wahab MASMED UiTM

Jika menggunakan BM, sila tukar "cash" kepada "tunai"

Complimentary Edition

SOURCES OF PROJECT FINANCING Sumber Pembiayaan Projek

….Please type your company's name here….. Sources of Project Financing Capital Expenditure Land & Building

Own Contributions Existing F. Assets Cash

Cost 0

-

0

-

0

0

-

0

0

-

0

0

-

0

0

-

0

0

-

0

0

-

0

0

-

0

0

-

0

0

-

0

0

-

0

0

-

Sales & Marketing Costs (monthly)

0

-

General & Administrative Costs (monthly)

0

-

Operations & Technical Costs (monthly)

0

-

Pre-Operating & Incorporation Costs (one-off)

0

-

Other Expenditure (annually)

0

-

Provision for Contingencies

0

-

TOTAL

0

Loan

Working Capital

0

0

0

Proposed Terms of Loan (if required)

Interest rate Loan tenure (years)

Proposed Terms of Hire-Purchase (if required)

5%

Interest rate

10

Tenure (years)

5% 5 Main Menu

FinePlann er

© 2010 Ismail Ab.Wahab

Hire-Purchase

0

© 2010 Ismail Ab.Wahab MEDEC UiTM

LOAN AMORTIZATION & HIR

Complimentary Edition

Jadual Bayaran Balik Pi

….Please type your company's name here….. LOAN AMORTIZATION SCHEDULE Amount (RM) Interest Rate Duration (yrs) Method Year

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

0 5% 10 Annual Rest Instalment Payments Interest Annual Payments

Principal

-

FinePlann er

-

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

ZATION & HIRE-PURCHASE SCHEDULES

ual Bayaran Balik Pinjaman & Sewa-Beli ….Please type your company's name here….. HIRE-PURCHASE REPAYMENT SCHEDULE

CHEDULE

Amount (RM) Interest Rate Duration (yrs) Principal Balance

Tahun

-

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

0 5% 5 Bayaran Ansuran Faedah

Pokok

-

-

BayaranTahunan

-

HEDULES

EDULE

Baki Pokok

-

Main Menu

Complimentary Edition

DEPRECIATION OF FIX

Susutnilai Aset Teta

….Please type your company's name here….. Type of Fixed Asset Cost (RM) 0 Depreciation Method Straight Line Economic Life (yrs) 5 Year

Annual Depreciation

0 1 2 3 4 5 6 7 8 9 10

Accumulated Depreciation

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

Accumulated Depreciation

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

0 1 2 3 4 5 6

-

-

0 0 Straight Line 5

Annual Depreciation

0 1 2 3 4 5 6 7 8 9 10

Book Value

Book Value

-

-

0 0 Straight Line 5

Annual Depreciation

Accumulated Depreciation

-

Book Value

-

-

7 8 9 10

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

Accumulated Depreciation

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

0 1 2 3 4 5 6 7 8

-

Accumulated Depreciation

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

Book Value

-

0 0 Straight Line 5

Annual Depreciation

0 1 2 3 4 5 6 7 8 9 10

-

0 0 Straight Line 5

Annual Depreciation

0 1 2 3 4 5 6 7 8 9 10

-

Book Value

-

-

0 0 Straight Line 5

Annual Depreciation

Accumulated Depreciation

-

Book Value

-

-

9 10

FinePlan

-

-

-

N OF FIXED ASSETS

nilai Aset Tetap Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

0 0 Straight Line 5

Annual Depreciation

0 1 2 3 4 5 6 7 8 9 10

Accumulated Depreciation

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

Accumulated Depreciation

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

0 1 2 3 4 5 6

-

-

0 0 Straight Line 5

Annual Depreciation

0 1 2 3 4 5 6 7 8 9 10

Book Value

Book Value

-

-

0 0 Straight Line 5

Annual Depreciation

Accumulated Depreciation

-

Book Value

-

-

7 8 9 10

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

Accumulated Depreciation

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

0 1 2 3 4 5 6 7 8

-

Accumulated Depreciation

-

Type of Fixed Asset Cost (RM) Depreciation Method Economic Life (yrs) Year

Book Value

-

0 0 Straight Line 5

Annual Depreciation

0 1 2 3 4 5 6 7 8 9 10

-

0 0 Straight Line 5

Annual Depreciation

0 1 2 3 4 5 6 7 8 9 10

-

Book Value

-

-

0 0 Straight Line 5

Annual Depreciation

Accumulated Depreciation

-

Book Value

-

-

9 10

-

-

-

Main Menu © 2010 Ismail Ab.Wahab MEDEC UiTM

PVIFA=

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Loan amt Principal 0

0.6139 7.7217349292 Int -

-

annual payme 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -

Balance -

Complimentary Edition

….Please type your company's name here….. Pro-forma Cash Flow Statement

MONTH Pre-Operations

January

February

CASH INFLOW Capital (Cash)

0

Loan Cash Sales Collection of Accounts Receivable

0

TOTAL CASH RECEIPT

0

0 0

0 0

0

0

Sales & Marketing Expenditure

0

0

General & Administrative Expenditure

0

0

Operations & Technical Expenditure

0

0

Other Expenditure

0

CASH OUTFLOW Pre-operating & Incorporation Expenditure

Purchase of Fixed Assets

-

0

Hire-Purchase Repayment: Principal

0

0

Interest

0

0

Principal

0

0

Interest

0

0

Tax Payable

0

0

Loan Repayment:

TOTAL CASH OUTFLOW

0

0

0

CASH SURPLUS (DEFICIT)

0

0

0

0

0

0

0

BEGINNING CASH BALANCE ENDING CASH BALANCE

FinePl an

0

PRO-FORM

2015 MONTHLY CASH FLOW March

April

May

June

July

0 0

0 0

0 0

0 0

0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

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0

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0

0

0

0

0

0

0

0

0

0

0

0

0

PRO-FORMA CASH FLOW STATEMENT Aliran Tunai Pro-forma

W August

September

October

November

December

0 0

0 0

0 0

0 0

0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

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0

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0

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0

0

ATEMENT

2015

2016

2017

0

0

0

0

0

0

0 0

0 0

0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

-

-

0

-

-

0

-

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0

-

-

0

-

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0

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0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Complimentary Edition

PRO-FORMA INCOME STATEMENT Penyata Pendapatan Pro-forma

….Please type your company's name here….. Pro-forma Income Statement Years

2015

2016

2017

0

0

0

0

0

0

0

0

0 #VALUE!

0 #VALUE!

#VALUE!

#VALUE!

Sales

Less: Expenditure Pre-Operating & Incorporation Expenditure

0

General & Administrative Expenditure

0

Sales & Marketing Expenditure Operations & Technical Expenditure

0

0

-

-

-

Other Expenditure

0

0

0

Interest on Hire-Purchase

0

0

0

Interest on Loan

0

0

0

Depreciation of Fixed Assets

0

0

0

Total Expenditure

0

0

0

Net Income Before Tax

0

0

0

#VALUE!

#VALUE!

Tax

0

0

0

#VALUE!

#VALUE!

Net Income After Tax

0

0

0

#VALUE!

#VALUE!

Accumulated Net Income

0

0

0

#VALUE!

#VALUE!

0 0

0

0

0

0

0

Complimentary Edition

PRO-FORMA BALANCE SHEET Kunci Kira-Kira Pro-forma

….Please type your company's name here….. Pro-forma Balance Sheet 2015

2016

2017

Main Men

Pro-forma Cash Flow

ASSETS

Pro-forma Income

Non-Current Assets (Book Value) Land & Building Other Fixed Assets

0 -

0 -

Pro-forma Balanc

0

Financial Perfo

-

Other Assets Deposit

0

0

0

0

0

0

0

0

Current Assets

SUMMARY 2015 2016

Inventory Accounts Receivable

0 0

0 0

0 0

Cash Balance

0

0

0

0

0

0

0

0

0

0

0

0

0

Capital

0

0

0

Accumulated Income

0

0

0

#VALUE!

#VALUE!

0

0

0

#VALUE!

#VALUE!

0

0

0

TOTAL ASSETS

2017

Owners' Equity

Long-Term Liabilities Loan Balance

Hire-Purchase Balance

0

0

0

0

0

Accounts Payable

0

0

0

TOTAL EQUITY & LIABILITIES

0

0

0

-

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Current Liabilities

FinePlanner

FINANCIAL P

Complimentary Edition

….Please type your company's name here….. Financial Ratio Analysis

2015

LIQUIDITY Current Ratio

NA

Quick Ratio (Acid Test)

NA

EFFICIENCY Receivable Turnover

NA

Inventory Turnover

NA

PROFITABILITY Gross Profit Margin

NA

Net Profit Margin

#DIV/0!

Return on Assets

#DIV/0!

Return on Equity

#DIV/0!

SOLVENCY Debt to Equity

#DIV/0!

Debt to Assets

#DIV/0!

Time Interest Earned

#DIV/0!

Break-even Analysis Total projected sales(RM) Total variable costs (cost of sales) Contribution margin Contribution margin ratio Fixed costs Total costs Net Profit

2015 NA NA NA

Break-even sales Percentage of break-even to sales

Current Ratio

-

Current Ratio

Receivable Turnover

Gross Profit Margin

Return on Assets

Return on Assets

Debt to Equity

Time In

FinePlan ner

NANCIAL PERFORMANCE

Ratio

Prestasi Kewangan

2016

2017

2018

2019

Main Menu Pro-forma Cash Flow Statement

NA

NA

#VALUE!

#VALUE!

Pro-forma Income Statement

NA

NA

#VALUE!

#VALUE!

Pro-forma Balance Sheet Financial Performance

NA

NA

#VALUE!

#VALUE!

NA

NA

NA

NA

NA

NA

NA

NA

#DIV/0!

#DIV/0!

#VALUE!

#VALUE!

#DIV/0!

#DIV/0!

#VALUE!

#VALUE!

#DIV/0!

#DIV/0!

#VALUE!

#VALUE!

#DIV/0!

#DIV/0!

#VALUE!

#VALUE!

#DIV/0!

#DIV/0!

#VALUE!

#VALUE!

#DIV/0!

#DIV/0!

#VALUE!

#VALUE!

PAYBACK PERIOD FOR START-UP FUND

Less than 1 year

INTERNAL RATE OF RETURN (IRR)

2016

2017 -

NA NA NA

Err:523

NA NA NA

-

-

-

-

NA NA

NA NA

NA

NA TIME TO BREAK-EVEN

#VALUE!

#VALUE!

Less than 1 year

Quick Ratio (Acid Test)

Ratio

Quick Ratio (Acid Test)

Turnover

Inventory Turnover

t Margin

Net Profit Margin

Assets

Return on Equity

Assets

Return on Equity

Debt to Assets

Equity

Time Interest Earned

© 2009 Ismail Ab.Wahab MEDEC UiTM

st)

2015 Current Ratio

NA

Quick Ratio (Acid Test)

NA

2016 NA

2015

2016 NA

2015 Receivable Turnover

NA

2016 NA

2015 Inventory Turnover

NA

Gross Profit Margin

NA

2016 NA

2015

2016 NA

2015

2016

Net Profit Margin

#DIV/0!

#DIV/0!

Return on Assets

2015 #DIV/0!

2016 #DIV/0!

Return on Equity

2015 #DIV/0!

2016 #DIV/0!

st)

r

Debt to Equity

2015 #DIV/0!

2016 #DIV/0!

Debt to Assets

2015 #DIV/0!

2016 #DIV/0!

Time Interest Earned

2015 #DIV/0!

2016 #DIV/0!

mail Ab.Wahab MEDEC UiTM

2017 NA

2018

2019

#VALUE! #VALUE! 2017

NA

2018 2019 #VALUE! #VALUE!

2017 NA

2018

2019

#VALUE! #VALUE! 2017

NA

2018 NA

2017 NA

NA 2018

NA 2017

2019

2019 NA

2018

2019

#DIV/0! #VALUE! #VALUE! 2017 2018 2019 #DIV/0! #VALUE! #VALUE!

2017 2018 2019 #DIV/0! #VALUE! #VALUE!

2017 2018 2019 #DIV/0! #VALUE! #VALUE! 2017 2018 2019 #DIV/0! #VALUE! #VALUE! 2017 2018 2019 #DIV/0! #VALUE! #VALUE!

BRIEF REPORT

TIME TO BREAK-EVEN

Less than 1 year Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

PAYBACK PERIOD FOR START-UP FUND

Less than 1 year Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

\

BRIEF REPORT

INTERNAL RATE OF RETURN (IRR)

Err:523 Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

TOTAL PROJECT COST

RM Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

TOTAL PROJECT COST

0 Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

SOURCES OF FINANCING

Cash Existing F. Assets Loan Hire-Purchase Total Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

SOURCES OF FINANCING

RM0 RM0 RM0 RM0 RM0 Back to Main Menu

09 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

CASH BALANCE

2015 2016 2017

RM RM RM

Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

CASH BALANCE

0 0 0

Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

NET INCOME BEFORE TAX

2015 2016 2017

RM RM RM

Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

T INCOME BEFORE TAX

0 0 0

Back to Main Menu

Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

OWNERS' EQUITY (ACCUMULATED

2015 2016 2017

RM RM RM

Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

NERS' EQUITY (ACCUMULATED)

0 0 0

Back to Main Menu

009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

TOTAL ASSETS & LIABILITIES (ACCUMULAT ASSETS

2015 2016 2017

RM RM RM

Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

TOTAL ASSETS & LIABILITIES (ACCUMULATED) ASSETS

LIABILITIES

RM 0 RM 0 RM 0

0 0 0

Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

ESTIMATED MONTHLY LOAN PAYMEN

RM 0 Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

MONTHLY LOAN PAYMENT

per month

Back to Main Menu

mail Ab.Wahab MEDEC UiTM

BRIEF REPORT

ESTIMATED MONTHLY HIRE-PURCHASE P

RM Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

BRIEF REPORT

ESTIMATED MONTHLY HIRE-PURCHASE PAYMENT

0

per month Back to Main Menu

© 2009 Ismail Ab.Wahab MEDEC UiTM

USER 'S GUIDE

FinePlan FINANCIAL PLANNING PACKAGE FOR SMALL AND MEDIUM BUSINESSES PROF. MADYA DR. ISMAIL AB.WAHAB, MALAYSIAN ENTREPRENEURSHIP DEVELOPMENT CENTRE (MEDEC), FACULTY OF BUSINESS MANAGEMENT, UNIVERSITI TEKNOLOGI MARA, SHAH ALAM, SELANGO R

  FinePlanner is an MS Excel-based financial planning package for generating comprehensive, highly professional and presentable financial projections for start-up entrepreneurs and small business operators. Based on market survey and assumptions, FinePlanner generates cash flow, income statement and balance sheet forecasts for up to five years ahead. It makes it suitable for managers and entrepreneurs with minimal knowledge in finance and accounting and who have no previous experience in financial or business planning.   Objective FinePlanner is a tool that can assist small and medium-sized entrepreneurs in the preparation of professional, comprehensive and presentable financial projections for business start-up and expansion. Novelty Dual language: English and Malay Generate comprehensive and presentable financial projection up to five years Suitable for businesses engaged in manufacturing, trading or services Suitable for incorporated or unincorporated businesses Suitable for all levels of existing and potential entrepreneurs: students & graduates entrepreneurs, corporate entrepreneurs, rural entrepreneurs, agro entrepreneurs, etc.

Getting Started

Before you start the planning process, select the language by clicking “English” or “Malay” buttons planning period. v  Select the planning period (3 or 5 years). v  Choose first year of planning period and first month of planning period. v  Select the legal form of business (private limited company or sole-proprietorship and others) v  Select nature of business (manufacturing, trading/distribution or service) Financial Forecasting

v  Click Capital expenditure projections menu for entering the projected cost of each fixed assets required for business. Please key in the cost of new fixed assets and/or the market value for existing fixed assets (if an Determine the number of years of economic or productive life for each asset (except land & building). The econo life of an asset refers to the period (normally expressed in number of years) whereby the asset can be economic used i.e. without much maintenance or breakdowns.

v   Next, select the depreciation method for all assets. The recommended method for calculating depreciation either straight-line or declining balance. The simplest and most commonly used is straight line method. It is calcula by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total produc years the asset can be reasonably expected to benefit the company [called “useful life” in accounting jargon]. planning purposes, the salvage value can be zero. The declining method of depreciation accelerates deprecia faster than the straight-line method because it bases each year's depreciation on the assets’ previous-year net b value. v  Go back to the main menu.

Projection of Pre-operating and Working Capital Expenditure

v   First, determine the pre-operating and incorporation costs. The pre-operating cost can includes busin registration and licences, legal fees , stamp duties etc. v   Next, estimate the sales and marketing costs, general and administrative costs, and operations a technical costs. These costs are incurred every month and are generally known as working capital. Other costs wh are not paid monthly but are incurred every year can be included under other expenditure (annually) category s as payment of road tax and insurance for motor vehicles, licences etc.

v  Estimate the increment rate for working capital expenditure (if any). Next, choose the current and estimated rates corporate taxation from the list. The system will only calculate the amount of tax for private limited company. v  Go back to the main menu.

Projections for Sales and Purchases

v  Fill in the sales projections table. Sales (or revenues) refers to the sales forecast derived from the marketing plan. It is the total of forecasted cash and credit sales for each year throughout the planned period. amount v  The Sales are of to monthly be forested purchases monthly in the (first purchase planningProjections year) and annually table should (after first be equal year).to the amoun purchases that have been projected in the working capital section under operations and technical cos category. v  If there some credit sales or purchases, choose the percentage of credit sales collections and cred purchase payments in the columns provided. v  Next, estimate the ending inventory of raw materials and finished goods (for manufacturing businesses only). For trading and distribution businesses, the ending inventory figures are to be entered the ending inventory of finished goods column only. It is assumed that there is no ending inventory fo businesses involved in service industry. If your businesses are involved in both trading and service activities, please select trading/distribution category under nature of business in the main menu. v  Go back to the main menu.

Project Costs and Financing v  The project cost is the total cost of implementation of the proposed project. The project cost schedu incorporates both long and short terms expenditure needed to start the business. The components of th schedule include capital expenditure, working capital, pre-operating and incorporation costs, other expenditure and provision for contingency.

v  The sources of financing schedule shows various sources of finance available to fund the business These could be internal and external sources of finance. The internal sources of finance include equity contributions in cash and/or existing assets. External sources may include term loan and hire purchase For planning purposes, other sources such as grants and money borrowed from individuals should be considered as own cash contributions. For each asset and working capital required, p lease choose the type of financing from the list provided in the sources of financing column. v  The amount of working capital is dependent upon the period until the business can generate enoug sales to cover its short-term expenditure. Therefore, the amount of working capital needed could be in th range of one to six months. Please select the number of months from the list provided in relevant colum v  The final component of the project cost is provision for contingency. This cost is added to the total cost of other four components based on a certain percentage (usually between 5 to 10 percent). The reason for includ contingency cost in the project implementation cost schedule is to take care of any variance of the actual from budgeted expenditure. For example, if the cost of materials increases during the planned period, the firm can uti this fund to cover the extra cost without having to search for new funding. SUMMARY AND SCHEDULES

This section presents the supporting schedules relating to the information that have been provided the forecasting section. The schedules are project cost and sources of funds summary, fix assets and depreciation schedules, and loan amortization schedule. REPORTS AND ANALYSIS

This section presents the pro-forma financial statements and analysis of the financial performance a position of the proposed project. Pro-forma cash flow statement

v   Pro forma cash flow statement refers to the projected statement of cash inflows and outflo throughout the planned period. Under normal circumstances, the pro forma cash flow statement prepared between three to five consecutive years, with monthly details for the first year. The pro form cash flow statement shows the following information:          Cash inflows – the projected amount of cash flowing into the company.          Cash outflows – the projected amount of cash flowing out of the company.          Cash deficit or surplus – the difference between cash inflows and cash outflows.          Cash position – the beginning and ending cash balances for a particular period. Pro-forma Income Statement

v  The pro forma income statement shows the expected profit for the planned period. T statement shows the following information:          Gross profit          Net profit

v  Gross profit is the gross margin realised after deducting the cost of goods sold from sales. It represents the amount of profit before deducting other operating expenditure such as administration expenditure, marketing expenditure, operations expenditure (for a tradin entity), interest charges, depreciation charges on fixed assets (except for a manufacturing concern) and other miscellaneous expenditure incurred throughout the year in order to obtain the net profit before tax. Pro-forma Balance Sheet

v  While the pro forma income statement shows the financial performance of the company for the planned period, the pro forma balance sheet shows the financial position o the company at a specific point in time in terms of assets owned and how those assets are financed. The pro forma balance sheet is prepared for a period of three years. v  The general elements of the pro forma balance sheet include:          assets          owner’s equity          liabilities

v  Assets are the economic resources of a business that are expected to be of benefit in th future. Assets reported in the balance sheet are generally categorised into two categories: non-current and current assets. v  Non-current assets include fixed assets and other assets that are owned and usua held to produce products or services. These assets are not intended for sale in the short term. Examples: property, plant, machinery, equipment, vehicles, major renovations and long-term investments. For fixed assets, the values shown in the balance sheet are the boo value i.e. the original cost less the accumulated depreciation. v  Current assets are short-term assets that can be converted into cash within a year. Examples: cash, inventories (raw materials, work-in-process and/or finished goods), receivables and other short-term investments.

v  Owners’ equity refers to capital contributions from the owners or shareholders in term of cash or assets plus the accumulated amount of net income. However, if the business suffers a loss, the amount of loss will be deducted from the capital contributions. v  Liabilities are the amounts owed by the business to outsiders. They are categorised as non-current (long-term) and current liabilities. v  Non-current or long-term liabilities refer to the long-term obligations of the busines

that mature in a period of more than one year. They usually include long-term loans as well as hire purchase. v  Current liabilities refer to the short-term obligations of the business that mature withi period of less than a year. The most common forms of current liabilities are accounts payab and accrued payments

Financial Analysis v  Financial analysis is a technique of examining financial statements to help the entrepreneur analyse the financial position and performance of the business. v  Financial analysis involves two basic steps: generating the information from the financia statements and interpreting the results. v  The most common form of financial analysis is “ratio analysis”. v  Financial ratios are normally used to compare figures from the financial statement with other figures, so that the true meaning of financial pictures can be obtained.

v  There are various financial ratios that the entrepreneur can look at. However, the most commonly considered ratios in small business decision-making fall into four categories: liquidity, efficiency, profitability and solvency.

v   Liquidity Ratio: The term liquidity refers to the availability of liquid assets to meet short-te obligations. Thus, liquidity ratios measure the ability of the business to pay its monthly bills.The m widely used liquidity ratios are current ratio and quick ratio. Current ratio can be determined dividing total current assets by total current liabilities. Generally, this ratio shows the business’ ability generate cash to meet its short-term obligations. Quick ratio, also known as the acid test ra measures the extent to which current liabilities are covered by liquid assets. To determine quick rat the calculation of liquid assets does not take into account inventrories since it is sometimes difficult convert them into cash quickly. v   The efficiency ratios measure how efficient the business uses its assets to generate sales. T most widely used efficiency ratio for planning purposes is inventory turnover ratio. Inventory turnov (or stock turnover) measures the number of times inventories have been converted into sales a indicates how liquid the inventory is. All other things being equal, the higher the turnover figure, t more liquid the business is. This ratio divides the cost of sales (or cost of goods sold) by the avera value of inventory. The average value of inventory is derived by adding the opening and closing balan of and dividing the total by two.

v   Profitability ratios are important indicators of the business’ financial performance. Investors w particularly be interested in these ratios since they measure the performance and growth potential the business. Some of the commonly used profitability ratios are gross profit margin, net profit marg return on assets and return on equity. Gross profit margin give a good indication of financial health the business. Without an adequate gross margin, the business will be unable to pay its operating a other expenses. Gross profit margin is calculated by dividing the business gross income by sales. N profit margin is an indication of how effective the business is at cost control. The higher the net pro margin, the more effective the business is at converting sales into actual profit. Net profit margin calculated by dividing the business net income by sales. Return of assets measures the overall retu that the business is able to make on its assets. This ratio is derived by dividing the business net pro by total assets. Return of equity shows what the business has earned on its owners’ investment in t business. This ratio is derived by dividing the business net profit by total equity.

This final category of ratios i.e. Solvency Ratios, is designed to help the entrepreneur measure the degree of financial risk that his business faces. By referring to this ratio, the entrepreneur can assess level of debt and decide whether it is appropriate for the business. The most commonly used solvency ratios are total debt (liabilities) to equity (also known as leverage or gearing), total debt to total asset and times interest earned (also known as interest coverage). The total debt to equity ratio measu the percentage of the business’ assets financed by creditors relative to the percentage financed by th owners. This ratio is calculated by dividing the the total debt by total equity. The debt to asset rat measures the percentage of the business’ assets financed by creditors relative to the percentage financed by the entrepreneur. This ratio is calculated by dividing the total debts by total assets. Time interest earned ratio measures the number of times interest expense can be covered by profit befo interest and tax. This ratio is calculated by dividing total inte

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