6.

3 SALES FORECAST
The table shows that the sales forecast of the product based on by month and also the total
sales for first three years. The total shows that in three year the sales of product were increase
than the first year of the business started.
Month
1
2
3
4
5
6
7
8
9
10
11
12
Year I
Year II
Year III

RM
10,000
10,000
12,000
11,000
12,000
15,000
16,000
14,000
17,000
14,000
15,000
16,000
162,000
250,000
500,000

Notes: Sales forecast increase 64.8% per year

SALES FORECAST

Graph of sales forecast by month

6.4 MARKETING BUDGET

This section we will explain our total budget in marketing during produce our product
based on the item that we had used.
6.4.1 Marketing Fixed Asset
Type
Banner
Newspaper
Signboard

Price (RM )
3,000
52(per weeks)
2,500

Pro Farma Profit and Loss

Units
1
Per year 12months
1

Total price (RM)

3,000
2,500
2,500
Total : RM 8,000

Year 1(RM)
162,000
5,508
0
5,508
173,462
96.92%

Sales
Direct Cost of Sales
Other
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
110,889
Sales and Marketing and Other
6,013
Expenses
Depreciation
0
Additional Payroll Burden
9,058
Leased Equipment
0
Utilities
1,200
Insurance
2,400
Rent
0
Payroll Taxes
0
Other
0
Total Operating Expenses
129,560
Profit Before Interest and
43,902
Taxes
EBITDA
43,902
Interest Expense
0
Taxes Incurred
12,108
Net Profit
31,794
Net Profit/Sales
17.76%

Year 2(RM)
250,000
5,903
0
5,903
175,588
96.75%

Year 3(RM)
500,000
6,150
0
6,150
180,448
96.70%

118,200

128,460

5,968

5,968

0
10,841
0
1,200
2,400
0
0
0
138,609

0
10,942
0
1,200
2,400
0
0
0
148,970

36,979

31,478

36,979
0
9,245
27,734
15.28%

31,478
0
5,378
26,101
13.99%

Pro Farma Cash Flow

Year 1(RM)

Year 2(RM) Year 3(RM)

162,000

250,000

500,000

162,000

250,000

500,000

Cash Received
Cash from
Operations
Cash Sales
Subtotal Cash from
Operations
Additional Cash
Received
Sales Tax, VAT,
HST/GST Received

New Current
Borrowing
New Other Liabilities
(interest-free)
New Long-term
Liabilities
Sales of Other
Current Assets
Sales of Long-term
Assets
New Investment
Received
Subtotal Cash
Received
Expenditures
Expenditures from
Operations
Cash Spending
Bill Payments
Subtotal Spent on
Operations
Additional Cash
Spent
Sales Tax, VAT,
HST/GST Paid Out
Principal Repayment
of Current Borrowing
Other Liabilities
Principal Repayment
Long-term Liabilities
Principal Repayment
Purchase Other
Current Assets
Purchase Long-term
Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

5,000

167,000

250,000

500,000

Year 1

Year 2

Year 3

110,889
32,586

118,200
37,444

128,460
32,305

143,475

155,644

160,765

5,000

0
148,475
35,495
44,570

0
155,644
25,847
70,417

0
160,765
25,833
96,250

Pro Farma Balance Sheet

Year 1
8000

Year 2
8000

Year 3
8000

44,570
1,492
0
46,062

70,417
1,074
0
71,491

96,250
1,088
0
97,338

Accumulated Depreciation

Total Long-term Assets

Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing

0
46,062
Year 1

0
71,491
Year 2

0
97,338
Year 3

5,193
0

2,888
0

2,634
0

Other Current Liabilities

Subtotal Current Liabilities 5,193

2,888

2,634

Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital

0
2,888
13,000
27,869
27,734
68,603

0
2,634
13,000
55,603
26,101
94,704

Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets

0
5,193
13,000
(3,925)
31,794
40,869

Total Liabilities and Capital 46,062

71,491

97,338

Net Worth

68,603

94,704

40,869