Professional Documents
Culture Documents
Financial Accounting
BC 100
Mary Jane Sdn. Bhd.
Mohamad Hisyam bin Abdul Majid
(Leader)
Muhammad Aliff Iqbal bin Zamri
1121116370
1112702063
1101108091
1111115009
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.
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
Price (RM)
2,000
1,000
Basic graphics
1,500
Additional graphics
500
Total
5,000
40%
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.
RM
Utilities
45,000
Maintenance
18,000
Insurance
22,500
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.
RM
Utilities
40,000
Maintenance
20,000
Insurance
15,000
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.
Year 2 ( RM )
Year 3 ( RM )
Sales
6,700,000
9,324,000
12,102,900
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
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
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
10,853,600
13,005,200
15,853,000
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
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
$280
22
$258
$7,967
32
$7,935
$0
0
$258
$0
0
$7,935
12
Year 1
Year 2
$400,000
$700,000
1,500,000
1,500,000
700,000
700,000
5,000
5,000
3,000
3,000
$2,608,000
$2,908,000
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
500,000
800,000
400,000
400,000
1,200,000
1,200,000
2,000,000
2,000,000
$14,100,000
$14,400,000
Year 1
Year 2
Other
$3,000,000
$5,000,000
6,000,000
10,000,000
2,000,000
20,000,000
2,000,000
10,000,000
1,400,000
4,000,000
$14,400,000
$49,400,000
$65,708,000
$45,000,000
Other
$49,000,000
13