Entrepreneur

Simple&Ready

Group report #4

“Financial Plan and Conclusion”

Entrepreneurship

MGT 4914

Submitted to:

Capt.Bhakdinaronk Nunbhakdi

Proposed by:

Section 427

Mr. Jakapetch C. ID 5211524

Ms. Kanthamanee S. ID 5212795

Ms. Yosya T. ID 5212997

Ms. Bannasorn P. ID 5213767

Ms. Pichayaon T. ID 5216336

Semester 2/2012

Assumption University

Table of Contents

Financial Assumption 1

Simple&Ready Financial Ratio Analysis 3

Capital Budgeting 5

Income Statement 6

Balance Sheet 7

Statement of Cash Flows 8

Financing 9

Conclusion 10

Appendices:

Advertising Expenses 11

Depreciation Expenses 16

Simple&Ready Financial Ratio Analysis 17

Financial Plan

Financial Assumption

1. Beginning Working Capital (Cash) 1,500,000

2. Purchases of raw materials are paid by cash and make credit agreement with the sellers.

3. First-in First-out (FIFO) Inventory System

4. Product costs:

Women’s shoes: 50% of selling price

Men’s shoes: 60% of selling price

Accessories: 20% of selling price

*Product costs are expected to decline by 3% each year due to economy of scale.

5. Depreciation Expenses- Straight-line method

6. The estimate useful life of the assets:

Buildings 20 years

Machine:

Leather cutting machine 20 years

Soles and Heels production machine 20 years

Sawing machines 10 years

Equipment 5 years

Furniture 10 years

7. Yearly Expenses:

Expenses/year | Year1 | Year2 | Year3 | Year4 |...