Financial Plan

In: Business and Management

Submitted By keefejuspen
Words 879
Pages 4
Financial Plan
List of Financial Assumptions

General * The maximum number of incorporators is 5 members * The term of existence of the company is for 10 months from October 2014 to July 2015. * For 10 months of business operations, 9 months will be used for production / operations and marketing. 1 month for Auditing and Dissolution * Full subcontracting is allowed from the start of business operations * No maximum capital contribution * Accrual Basis of accounting

Project Cost Statement * Cost Covered will be for the first two month of operations * Fixed capital outlay consists of tools, equipment and machines purchased

Budgets * Worker’s wages are P _____ / hour (use the actual worker’s minimum wages – see minimum wage law and should be based on the industry they belong to) * 8 hours of production in a week (if not full subcontract) * Overtime rate is P _____ / hour (+ 25 % of minimum worker’s wages) (If you use P 10 / hour as your worker’s wage, then overtime rate is P 12.50 / hour – if not full subcontract) * Number of group members (partners or incorporators) will remain constant for the entire life of the firm * Inflation rate is ______ (applied to materials or supplies) * If the group would use one of the proponent’s residence as their plant site, the plant site/office site rent is P 300 / month (Inclusive of Utilities). It not, plant site / office site rent is P ____/ month (The group should use the actual rental fee of their plant area). Inclusive of utilities (Note : It should depend upon the contract, if it’s not inclusive, then they have to pay the electricity and water bill.) * Equipment rental fees are P _____ / month. (Use the actual rental cost) * Depreciation expense (if applicable) is computed using the straight line method across 10 months with zero salvage value…...

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