BAC 1034

Financial Accounting
BC 100
Mary Jane Sdn. Bhd.
Mohamad Hisyam bin Abdul Majid
(Leader)
Muhammad Aliff Iqbal bin Zamri

1121116370

1112702063

Mohamed Hakim bin Abdul Aziz

1101108091

Muhammad Azri Afif bin Azlin

1111115009

Fazlan bin Yusof

1111113557

Contents
Executive Summary................................................................................................................................. 3
Introduction ........................................................................................................................................ 3
About The Company ........................................................................................................................... 3
About The Products ............................................................................................................................ 3
The Market .......................................................................................................................................... 3
Financial Requirements ...................................................................................................................... 4
Mission ................................................................................................................................................ 4
Sales Projection ....................................................................................................................................... 5
Capital Expenditure Plan and Budget ..................................................................................................... 6
Capital Project Plan ............................................................................................................................. 6
Development Costs/Requirement for website ................................................................................... 7
Total Cost of Capital Expenditure Plan ............................................................................................... 8
Financial planning ................................................................................................................................... 9
Capital Funds ....................................................................................................................................... 9
Operational Expenditure Plan ............................................................................................................. 9
Investors pay ...................................................................................................................................... 9
Future Projections ( 3 Years Period ) ................................................................................................ 10
Budgeted Balance Sheet ................................................................................................................... 11
Statement of Comprehensive Income .................................................................................................. 12
Statement of Cash Flow ........................................................................................................................ 13

Executive Summary
Introduction
Mary Jane Sdn Bhd is a company which an innovative idea of selling and distributing
selected Apple products in vending machines. The use of vending machines enables loyal
Apple customers to purchase their favourite products conveniently and with easy. We aspire
to penetrate the electronic gadget market worth billions of ringgit by offering a revolutionary
method of transaction that is cost-effective to both the consumers and the company. Mary
Jane is a partnership of a partnership agreement. With the establishment of strategic alliances
with commercial banks and telecommunication companies.

About The Company

Mary Jane Sdn Bhd is manage by the executive director, Muhammad Aliff Iqbal B.Zamri.
The remaining four partners bring their intelligent and own expertise into the company. The
partnership form of enterprise is chosen due to the ease of establishing the business and to
pool talents and skills from multiple disciplines.

About The Products

All of our Apple products will be sold in custom-built vending machines. Payments can be
made via credit cards, online banking and cash. We offer an innovative solution to tiresome
physical payments which is by utilizing the barcode system to recognize individuals online
accounts. The machine will read the barcode and the customer will receive their desired items
from the machine.

The Market
The markets for our products are expected to be very large and include all electronic gadgets
users. This is estimated to be around 60% of the countrys population. Our main target
market is the existing Apple customers which can be segmented into 4 distinct groups; higher
income working individuals, frequent local travellers, tourists and students.
Leading competitors such as Samsung and Sony will pose some challenges to our brand. We
will also analyse the environment to observe for any changes in the market place. Factors that
may affect the market place include recession, rising inflation and increase in income levels.

Financial Requirements
Our capital is estimated to around RM10, 000,000. The Executive Director of the company
will provide 40% of the total amount, while the other 60% will be obtained through loans.
The loans will mature after 10 years with a 5% annual interest. The start-up cost will be
around RM6, 000, 000. Sales are expected to grow at the rate of 30% annually.

Mission
Mary Janes mission is to be the leader in innovative and convenient means of offering high
quality gadgets and accessories. We will also aim to build a strong relationship between the
company and its customers through excellent after-sale services.

Sales Projection
A sales projection is the amount of revenue a company expects to earn at some point in the
future. It's a prediction that is synonymous with a sales forecast. Both help determine the
health of a company and whether sales will trend upward or downward. Small companies
use various input to determine sales projections. The initiative usually commences in the
sales department. There are certain inherent advantages to calculating and using sales
projections. In the table below the blue line represents the sales projection and the red line
represents the total cost from operating the business it is estimated that apple will make
losses on the 1st quarter of doing business and the 2nd quarter when doing business. In the
3rd and 4th quarter is when sales will start to exceed total cost and thus recording profit from
the business.

Sales projection
8,000,000
7,000,000
Axis Title

6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Sales

1,300,000

2,900,000

4,850,000

6,700,000

Total Cost

1,700,000

3,200,000

4,500,000

6,480,000

Capital Expenditure Plan and Budget

Apple in general has a wide range of market. This is because Apple products are not only
useful for the working environment; it can go as far as helping a person check in their
boarding pass. So with the very wide market and high demands for Apple products, we
believe that by having vending machines that sell Apple products, we can boost our revenue
and customer relations as anyone can now buy Apples latest products and accessories. As
our vending machine will be located in major international airports and top shopping malls, it
would help the sales on the vending machine. In terms of market, electronics is one of our
biggest aspects to market our products. As Apple is one of the biggest electronics company in
the world and having many loyal users of our products, we believe that the demand for
electronic gadgets especially Apple is always there. Our main competitors in the industry are
Samsung and IBM as they would present some challenges in the race to being a tycoon in
electronic industry.
In terms of potential customers, Apple certainly has a wide range of users. The potential
customers though would be our competitors users. Another group of potential customers
would be Apple first time users. By coming up with new ways for consumers to purchase our
products, this will help to boost our name in the industry. There are 4 different types of
markets in terms of what consumers want.

Capital Project Plan

Our company will be using the website as the online catalogue and one of the ordering
methods. The main components on the website will be the information regarding the product,
company information, as well as necessary contact information for the customer if they
encounter any problems at all.

Development Costs/Requirement for website

The development cost of the website will be significantly low due to the amount of websites
growing nowadays. Thus, it will be very much cost-effective in creating and managing the
website for our company.
Description

Price (RM)

Base site costs

2,000

Content Management or Blog

1,000

Basic graphics

1,500

Additional graphics

500

Total

5,000

Development cost for website

10%

Base site costs

40%

Content Management or Blog

30%

Basic graphics
Additional graphics

20%

The main idea of having an online store or catalogue is to make it easier for our consumers to
buy our product. There will be 2 main methods of purchasing our product from the website
which are through online banking and credit card purchase
Online Banking
Our company will be offering a purchase system where the customers can buy our product
via online banking. Transactions can be made directly to our company account which will
also be provided on the website.

Credit Card
Our company will also be providing another purchase method in which the customers can use
the credit card for direct purchase transactions. Credit card slot will be installed in the
machine, allowing our customers to perform purchasing transactions directly at the machine
and get their items without having to wait for their items.
Our company will provide other purchasing transactions using credit card which will be using
barcodes. After a complete transaction had been confirmed, our customers will be provided
with a unique barcode where they can use it to scan at the vending machine and obtain the
product directly from the vending machine.

Total Cost of Capital Expenditure Plan

The total cost of capital expenditure plan in the year 1 reports is over RM6.2 billion. The
material (merchandises) makes up the largest source of fund at RM5.4 billion and indicates
that how our capital projects will be funded in the future planning.
Items

RM

Utilities

45,000

Maintenance

18,000

Insurance

22,500

Rent (Vending Machine space)

72,000

Equipment

300,000

Materials (Merchandises)

5,400,000

Office Equipment

54,000

Advertising

23,000

Labour

366,000

TOTAL COST

6,270,500

Financial planning
Capital Funds
Mary Jane Sdn. Bhd. is a business that provides vending services such as stated in the earlier
company introduction. The business requires roughly a minimum capital of RM 8,500,000
and a maximum of RM 12,000,000. 45 percent of the total funds needed, will be funded by
the companys Director himself whereas the other 55 percent will funded by other investors
who are interested as well as from Commercial banks under personal loan. An interest of 5
percent is paid annually for a period of 7 years.

Operational Expenditure Plan

Item

RM

Utilities

40,000

Maintenance

20,000

Insurance

15,000

Rent(Space for Vending Machine)

100,000

Equipment

350,000

Materials

5,500,000

Office Equipment

50,000

Advertising

30,000

Labor

375,000

Total Cost

6,480,000

Investors pay
In the beginning of making the company, the investors or partners signed a partnership
agreement where they have agreed to a certain amount of shares where they will receive
yearly based on the amount of profit earned. The shares that the investor will be paid is based
on the investment that they put into the company. In the agreement, it also states that in the
case a partner decides to leave, they are entitled to a share capital refund.

Future Projections ( 3 Years Period )

Year 1 ( RM )

Year 2 ( RM )

Year 3 ( RM )

Sales

6,700,000

9,324,000

12,102,900

Less: Cost of Goods Sold

5,300,000

7,383,000

9,531,500

Gross Profit

1,400,000

1,941,000

2,571,400

Utilities

40,000

40,000

40,000

Maintenance

20,000

20,000

20,000

Insurance

15,000

15,000

15,000

Advertising

30,000

35,000

42,000

Labor

375,000

375,000

375,000

Interest Expense

120,000

120,000

120,000

NET PROFIT

800,000

1,336,000

1,959,400

Expenses

GROSS AND NET PROFIT

3,000,000
2,500,000
2,000,000
Gross Profit

1,500,000

NET PROFIT
1,000,000
500,000
0
1

10

Sales
14,000,000
12,102,900

12,000,000
10,000,000

9,324,000

8,000,000
6,700,000

6,000,000

Sales

4,000,000
2,000,000
0
1

Budgeted Balance Sheet

Year 1 ( RM )
Total Current Assets

Year 2 ( RM )

Year 3 ( RM )

10,371,900

12,523,500

15,371,300

481,700

481,700

481,700

Total Assets

10,853,600

13,005,200

15,853,000

Total Liabilities

6,500,000

6,500,000

6,500,000

Total Equity

4,353,600

6,505,200

9,353,000

Total Liabilities And Capital

10,853,600

13,005,200

15,853,000

Total Long Term Assets

Break-Even Analysis
8,000,000
7,000,000
Axis Title

6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Sales

1,300,000

2,900,000

4,850,000

6,700,000

Total Cost

1,700,000

3,200,000

4,500,000

6,480,000

11

Statement of Comprehensive Income

Mary Jane Sdn Bhd
For 2 Years
(all in $000)
REVENUE
Gross sales

2006
$6,700
5,300
$1,400

2007
$9,324
230
$9,094

$350
120
$470
360
$110

$360
165
$525
420
$105

$1,290

$8,989

$375
12
30
14
5
$436

$375
14
35
15
6
$445

$12
2
15
100
40
50
5
350
$574

$14
3
15
100
40
50
5
350
$577

$1,010

$1,022

Net Income After Taxes

$280
22
$258

$7,967
32
$7,935

Extraordinary gain or loss

Income tax on extraordinary gain
NET INCOME (LOSS)

$0
0
$258

$0
0
$7,935

Less sales returns and allowances

Net Sales
COST OF SALES
Beginning inventory
Plus goods purchased / manufactured
Total Goods Available
Less ending inventory
Total Cost of Goods Sold
Gross Profit (Loss)
OPERATING EXPENSES
Selling
Salaries and wages
Commissions
Advertising
Depreciation
Other
Total Selling Expenses
General/Administrative
Salaries and wages
Payroll taxes
Insurance
Rent
Utilities
Office supplies
Interest
Furniture & equipment
Total General/Administrative Expenses
Total Operating Expenses
Net Income Before Taxes
Taxes on income

12

Statement of Cash Flow

Statement of Cash Flows

Cash flows from operating activities

Year 1

Cash received from customers

Year 2

$400,000

$700,000

1,500,000

1,500,000

700,000

700,000

Cash paid for interest

5,000

5,000

Cash paid for taxes

3,000

3,000

$2,608,000

$2,908,000

Cash paid for merchandise

Cash paid for wages and other operating expenses

Other
Net cash provided (used) by operating activities
Cash flows from investing activities

Year 1

Year 2

Cash received from sale of capital assets (plant and equipment, etc.)

$10,000,000

$10,000,000

Cash received from disposition of business segments

500,000

800,000

Cash received from collection of notes receivable

400,000

400,000

Cash paid for purchase of capital assets

1,200,000

1,200,000

Cash paid to acquire businesses

2,000,000

2,000,000

Net cash provided (used) by investing activities

$14,100,000

$14,400,000

Cash flows from financing activities

Year 1

Year 2

Other

Cash received from issuing stock

$3,000,000

$5,000,000

Cash received from long-term borrowings

6,000,000

10,000,000

Cash paid to repurchase stock

2,000,000

20,000,000

Cash paid to retire long-term debt

2,000,000

10,000,000

Cash paid for dividends

1,400,000

4,000,000

Net cash provided (used) in financing activities

$14,400,000

$49,400,000

Increase (decrease) in cash during the period

$65,708,000

$45,000,000

Other

Cash balance at the beginning of the period

Cash balance at the end of the period

$49,000,000

13