Financial Plan

Source and Use of Funds Statement

The start-up cost required for the funeral home amount to $507645. The form of business ownership for the funeral home is an LLC made up of 5 members. These members will contribute the amount as their share capital.

These will be used to offset the initial capital expenditure required to set up the Funeral homes. The funds will be broken down in the following cost items:

Cost ItemCost
Stainless steel prep table$ 5000
Embalming machine$4000
TVs$10,000
Caskets and Urns$ 15,000
Building structuring$300,000
Registration fees$800
Legal fees, Insurance, permits & license$5000
Marketing$90,000
Salaries and wages (3 months)$ 26298
Working capital (3 months)$ 35527
Total Costs$507645

Assumptions Sheet

The following assumptions will apply for the Funeral home business

  1. The price for the major services will grow at the rate of 4% before stabilizing
  2. The business will experience volume growth rate of 10% in year one, 15% in year two and 20% in year three.
  3. The directors salaries is expected to grow at the rate of 3% annually.
  4. The salesperson wages will be constant up to the third year when it then increase by 3% annually.
  5. During the first year of operation, only one administrative assistant will be engaged up to November when another one will be added and their rates will increase by 3% annually
  6. The electricity costs increases at the rate of 1% annually
  7. The fuelling costs increases at the rate of 2% annually
  8. Insurance costs increases at the rate of 1% annually
  9. Office Supplies increases at the rate of 2% annually
  10. Maintenance costs increases at the rate of 3% annually
  11. Advertising costs increases at the rate of 1% annually

Proforma Financial Statements

Profit and Loss Account

 JanFebMarAprMayJunJulAugSepOctNovDec
Sales136,000.00149,600.00164,560.00181,016.00199,117.60219,029.36240,932.30265,025.53291,528.08320,680.89352,748.97388,023.87
Net Sales136,000.00149,600.00164,560.00181,016.00199,117.60219,029.36240,932.30265,025.53291,528.08320,680.89352,748.97388,023.87
Cost of Goods Sold98,148.00107,963.00118,759.00130,635.00143,693.00158,068.00173,875.00191,263.00210,389.00231,428.00254,571.00280,028.00
Gross Profit37,852.0041,637.0045,801.0050,381.0055,424.6060,961.3667,057.3073,762.5381,139.0889,252.8998,177.97107,995.87
Operation Expenses            
Salaries & Wages8,766.008,766.008,766.008,766.008,766.008,766.008,766.008,766.008,766.008,766.0012,048.0012,048.00
Depreciation200.00200.00200.00200.00200.00200.00200.00200.00200.00200.00200.00200.00
Rent4,000.004,000.004,000.004,000.004,000.004,000.004,000.004,000.004,000.004,000.004,000.004,000.00
Office Supplies500.00500.00500.00500.00500.00500.00500.00500.00500.00500.00500.00500.00
Utilities550.00550.00550.00550.00550.00550.00550.00550.00550.00550.00550.00550.00
Insurance1,200.001,200.001,200.001,200.001,200.001,200.001,200.001,200.001,200.001,200.001,200.001,200.00
Travel250.00262.50275.63289.41303.88319.07335.02     
Maintenance20.0020.0020.0020.0020.0020.0020.0020.0020.0020.0020.0020.00
Advertising150.0015,000.0015,000.0015,000.0015,000.0015,000.0015,000.0015,000.0015,000.0015,000.0015,000.0015,000.00
Licenses400.00400.00400.00400.00400.00400.00400.00400.00400.00400.00400.00400.00
Total Operation Expenses16,036.0030,898.5030,911.6330,925.4130,939.8830,955.0730,971.0230,636.0030,636.0030,636.0033,918.0033,918.00
Income From Operations21,816.0010,738.5014,889.3719,455.5924,484.7230,006.2936,086.2843,126.5350,503.0858,616.8964,259.9774,077.87
Interest Income (Expense)0.000.000.000.000.000.000.000.000.000.000.000.00
Income Before Income Taxes21,816.0010,738.5014,889.3719,455.5924,484.7230,006.2936,086.2843,126.5350,503.0858,616.8964,259.9774,077.87
Income Tax Expense6,544.803,221.554,466.815,836.687,345.429,001.8910,825.8812,937.9615,150.9217,585.0719,277.9922,223.36
Net Income15,271.207,516.9510,422.5613,618.9117,139.3021,004.4025,260.3930,188.5735,352.1541,031.8244,981.9851,854.51

Annual Profit and Loss Account

 201820192020
Sales2,908,262.593,344,501.984,013,402.38
Net Sales2,908,262.593,344,501.984,013,402.38
Cost of Goods Sold2,098,820.002,378,848.002,658,876.00
Gross Profit809,442.59965,653.981,354,526.38
Operation Expenses   
Salaries & Wages111,756.00115108.68118561.9404
Depreciation2,400.002,400.002,400.00
Rent48,000.0048,000.0048,000.00
Office Supplies6,000.00  
Utilities6,600.0066666732.66
Insurance14,400.001468814981.76
Travel2,035.51  
Maintenance240.007202160
Advertising165,150.00166801.5168469.515
Licenses4,800.004,800.004,800.00
Total Operation Expenses361,381.51359,184.18366,105.88
Income From Operations448,061.08606,469.80988,420.50
Interest Income (Expense)0.000.000.00
Income Before Income Taxes448,061.08606,469.80988,420.50
Income Tax Expense134,418.32181,940.94296,526.15
Net Income313,642.76424,528.86691,894.35

Cashflow Statement

201820192020
Cash received from customers‘0001,6471,9702,459
Direct Costs‘000(165)(197)(246)
Rent‘000(49)(50)(51)
Salaries and Wages‘000(62)(64)(66)
Electricity Cost‘000(7)(7)(7)
Insurance costs‘000(1)(1)(1)
Office supplies‘000(61)(62)(64)
Maintenance‘000(25)(25)(26)
Advertising‘000(18)(18)(19)
Licenses‘000(5)(5)(5)
Taxation‘000377462593
Cash flow from operations‘0001,2551,5401,975
Capital Expenditure‘000(490)00
Cash flow available for loan repayment‘0007651,5401,975
000
Equity Injection00080000
Cash flow available for shareholders‘0001,5651,5401,975
Dividend‘000(157)(184)(228)
Net cash balance‘0001,4091,7252,203
Cash balalance b/f‘00001,4093,065
Net cash balance‘0001,4091,6562,048
Cash bal c/f‘0001,4093,0655,113

Statement of Financial Position

Balance Sheet as at 31st December
FY-[2018]FY-[2019]
Current Assets
Cash634,0001,082,340
Inventories100,000100,000
Accounts receivable127,057
Pre-paid expenses50,00051,000
Total911,0571,233,340
Fixed Assets
Property and equipment334,000334,000
Less accumulated depreciation (Negative Value)(24,000)(48,000)
Total358,000382,000
Total Assets1,269,0571,615,340
Current Liabilities
Accounts payable344,438386,641
Income taxes payable103,331.40296,526
Total447,769683,167
Owner Equity
Investment capital507,645507,645
Accumulated retained earnings313,643424,528
Total821,288932,173
Total Liabilities & Stockholder Equity1,269,0571,615,340
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