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Financial Model

The document summarizes the financial details of a food outlet selling burgers at IBA. It provides information on sales, costs of goods sold, operating expenses like salaries and rent, marketing expenses, and financial details like bank loans. The outlet is projected to have annual sales of over Rs. 100 million by 2021 with net profits increasing from over Rs. 33 million in 2017 to around Rs. 46 million in 2021. Cash flows are positive every year as retained earnings and depreciation exceed expenses and loan repayments.

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Muneeb Mateen
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50 views

Financial Model

The document summarizes the financial details of a food outlet selling burgers at IBA. It provides information on sales, costs of goods sold, operating expenses like salaries and rent, marketing expenses, and financial details like bank loans. The outlet is projected to have annual sales of over Rs. 100 million by 2021 with net profits increasing from over Rs. 33 million in 2017 to around Rs. 46 million in 2021. Cash flows are positive every year as retained earnings and depreciation exceed expenses and loan repayments.

Uploaded by

Muneeb Mateen
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A food outlet selling burgers at IBA

Working days per year: 300


SP/burger: Rs 120
Sales: 215 units/day
Cost of sales:
Lettuce: Rs. 34.37 per head, daily need: 10 heads
Tomatoes: Daily need: 6 kgs, Rs. 55.26/kg
Ketchup: Daily need: 2 kgs, Rs. 210/kg
Mayonnaise: Daily need: 2 kgs, Rs. 260/kg
Buns: Rs. 11/bun, daily need: 215 buns
Patties: Rs. 35/pattie, daily need: 215 patties
Oil: Rs. 200/litre, daily need: 2 litres
Gasoline: Rs. 74.59/litre, daily need: 3 litres
Transport maintenance: Rs 1500 per month
Others: Rs. 2000 per month
Total cost of sales (monthly):
Salaries:
Chef: Rs. 7000
Driver: Rs. 5000
Cashier/ Accountant: 15000
Total salaries/month
Rent:
Total monthly rent (large cabin)
Marketing Expenses:
Standees, Flyers Rs. 2000 (monthly)
Average inflation rate: 7.92%
BALANCE SHEET:
Deep fryer:
Cost
Depreciated@10%. Rate applied on NBV
Computer
Cost
Depreciated@20%. Rate applied on NBV
Bank loan
Rate
Years
PMT
Payments and accrual
Equity
Assumptions
25 days a month
In line with the competitors price
5% of IBA's population

https://www.numbeo.com/cost-of-living/country_result.jsp?country=Pakistan
https://www.numbeo.com/cost-of-living/country_result.jsp?country=Pakistan
http://gomart.pk/national-tomato-ketchup-500g-pakistan.html
http://gomart.pk/youngs-french-mayonnaise-1kg-pakistan.html
http://gomart.pk/dawn-burger-bun-pakistan.html
http://gomart.pk/k-and-ns-burger-patties-pakistan.html
http://www.qeemat.com/dalda-cooking-oil-price-in-pakistan/
https://www.numbeo.com/cost-of-living/country_result.jsp?country=Pakistan
Estimated
Estimated
306725.75
2 chefs, 1 driver, 1 cashier/accountant
Estimated
Estimated
Estimated
34000
As per IBA rates, increases by 5% every year
20000

Estimated
http://www.tradingeconomics.com/pakistan/core-inflation-rate

http://www.symbios.pk/deep-fryer-sdf-3830
6300

http://www.computerprices.pk/laptop/Asus/s551lb_-_cj063h_prices_in_pakistan
77500

300000
10%
5
$79,139.24
Estimated
Owner would invest Rs. 10000 in the business every year.
AMORTIZATION SCHEDULE
2017 2018 2019 2020 2021
Scheduled Payment 79139.24 79139.24 79139.24 79139.24
Interest Expense 30000 25086.08 19680.76 13734.91
Principal Repayment 49139.24 54053.16 59458.48 65404.33
Remaing Principal 300000 250860.8 196807.6 137349.1 71944.79
2017 2018 2019 2020 2021
Sales 7740000 8353008 9014566 9728520 10499019
less: Cost of sales 3680709 3972221 4286821 4626337 4992743
Gross Profit 4059291 4380787 4727745 5102183 5506275
less: Operating expenses
Depreciation: Deep fryer 630 567 510.3 459.27 413.343
Depreciation: Computer 15500 12400 9920 7936 6348.8
Total operating expenses 16130 12967 10430.3 8395.27 6762.143
less: Administrative expenses
Salaries 408000 440313.6 475186.4 512821.2 553436.6
Rent 240000 252000 264600 277830 291721.5
Total administrative expenses 648000 692313.6 739786.4 790651.2 845158.1
less: Marketing expenses 24000 25900.8 27952.14 30165.95 32555.1
less: Finance cost
Interest Expense 0 30000 25086.08 19680.76 13734.91
Net Pofit 3371161 3619605 3924490 4253289 4608065
2017 2018 2019 2020 2021
ASSETS
Non-current assets:
Deep Fryer 6300 6300 6300 6300 6300
less: Depreciation 630 1197 1707.3 2166.57 2579.913
Net book value 5670 5103 4592.7 4133.43 3720.087
Computer 77500 77500 77500 77500 77500
less: Depreciation 15500 27900 37820 45756 52104.8
Net book value 62000 49600 39680 31744 25395.2
Total non-current assets 67670 54703 44272.7 35877.43 29115.29
Current assets:
Cash 3803491 3598433 3895867 4217226 4564423
Trade receivables 20000 452330 431157.8 402534.9 366471.7
Total assets 3891161 4105466 4371298 4655639 4960010
LIABILITIES AND EQUITY
Current liabilities:
Payables and accruals 20000 25000 30000 35000 40000
Long-term liabilities:
Bank loan 300000 250860.8 196807.6 137349.1 71944.79
EQUITY:
Owner's capital 200000 210000 220000 230000 240000
Retained earnings 3371161 3619605 3924490 4253289 4608065
3891161 4105466 4371298 4655639 4960010

AFN: (Funded by trade receivables) 20000 452330 431157.8 402534.9 366471.7


2017 2018 2019 2020 2021
Cash flow from operating activities
add: Retained earnings 3371161 3619605 3924490 4253289 4608065
add: Depeciation 16130 12967 10430.3 8395.27 6762.143
add: Increase in payables 0 5000 5000 5000 5000
Total cash flow from operating activities 3387291 3637572 3939921 4266685 4619827

Cash flow from investing activities:


Deep Fryer 6300 0 0 0 0
Computer 77500 0 0 0 0
Total cash flow from investing activities -83800 0 0 0 0

Cashflow from financing activities


Bank loan 300000 0 0 0 0
less: Payments of bank loan 0 49139.24 54053.16 59458.48 65404.33
Increase in owner's equity 200000 10000 10000 10000 10000
Total cashflow from financing activities 500000 -39139.24 -44053.16 -49458.48 -55404.33
Net cashflow 3803491 3598433 3895867 4217226 4564423

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