Financial Projections
As mentioned in company description, our company needs a fund of RM3, 250 to start our business. To get the capital, each of the partners will contribute RM 250 while stakeholder will contribute RM1,500.
Contribution
|
|
Stakeholder
|
RM 1, 500
|
Partners (7 persons)
|
RM 1, 750
|
Total
|
RM 3, 250
|
To set the price for the product, we decided to obtain a gain of RM15 from each product. Hence, we would now calculate the cost per product first.
Product (Fold-able table on bed) |
RM 40 |
Labour Cost |
RM 19 |
Transportation |
RM 4 |
Promoting Cost |
RM 2 |
Total Cost |
RM 65 |
Selling Price |
RM 80 |
Profit |
RM 15 |
Since the total cost for a fold-able table is RM 65, we decided to set the price of the table to be RM 80. However, for the customers outside UM that require us to deliver the product to venues other than the principal we set, additional charge of RM 10 will be applied.
Able Group plans to obtain our first business starting from 1st of January, 2013. To ensure better flow of cash in the departments, following statement of estimated cash flow is prepared. This is because the statement could act as a guide for the departments to follow when incurring expenses. Besides, budgeted financial report such as income statement and balance sheet are prepared for current and coming 3 months. This could help Able Group to predict potential financial crisis or opportunities in near future and hence immediate actions could be planned and implemented.
