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 Item	Cost
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

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Sales	136,000.00	149,600.00	164,560.00	181,016.00	199,117.60	219,029.36	240,932.30	265,025.53	291,528.08	320,680.89	352,748.97	388,023.87
Net Sales	136,000.00	149,600.00	164,560.00	181,016.00	199,117.60	219,029.36	240,932.30	265,025.53	291,528.08	320,680.89	352,748.97	388,023.87
Cost of Goods Sold	98,148.00	107,963.00	118,759.00	130,635.00	143,693.00	158,068.00	173,875.00	191,263.00	210,389.00	231,428.00	254,571.00	280,028.00
Gross Profit	37,852.00	41,637.00	45,801.00	50,381.00	55,424.60	60,961.36	67,057.30	73,762.53	81,139.08	89,252.89	98,177.97	107,995.87
Operation Expenses
Salaries & Wages	8,766.00	8,766.00	8,766.00	8,766.00	8,766.00	8,766.00	8,766.00	8,766.00	8,766.00	8,766.00	12,048.00	12,048.00
Depreciation	200.00	200.00	200.00	200.00	200.00	200.00	200.00	200.00	200.00	200.00	200.00	200.00
Rent	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00	4,000.00
Office Supplies	500.00	500.00	500.00	500.00	500.00	500.00	500.00	500.00	500.00	500.00	500.00	500.00
Utilities	550.00	550.00	550.00	550.00	550.00	550.00	550.00	550.00	550.00	550.00	550.00	550.00
Insurance	1,200.00	1,200.00	1,200.00	1,200.00	1,200.00	1,200.00	1,200.00	1,200.00	1,200.00	1,200.00	1,200.00	1,200.00
Travel	250.00	262.50	275.63	289.41	303.88	319.07	335.02
Maintenance	20.00	20.00	20.00	20.00	20.00	20.00	20.00	20.00	20.00	20.00	20.00	20.00
Advertising	150.00	15,000.00	15,000.00	15,000.00	15,000.00	15,000.00	15,000.00	15,000.00	15,000.00	15,000.00	15,000.00	15,000.00
Licenses	400.00	400.00	400.00	400.00	400.00	400.00	400.00	400.00	400.00	400.00	400.00	400.00
Total Operation Expenses	16,036.00	30,898.50	30,911.63	30,925.41	30,939.88	30,955.07	30,971.02	30,636.00	30,636.00	30,636.00	33,918.00	33,918.00
Income From Operations	21,816.00	10,738.50	14,889.37	19,455.59	24,484.72	30,006.29	36,086.28	43,126.53	50,503.08	58,616.89	64,259.97	74,077.87
Interest Income (Expense)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Income Before Income Taxes	21,816.00	10,738.50	14,889.37	19,455.59	24,484.72	30,006.29	36,086.28	43,126.53	50,503.08	58,616.89	64,259.97	74,077.87
Income Tax Expense	6,544.80	3,221.55	4,466.81	5,836.68	7,345.42	9,001.89	10,825.88	12,937.96	15,150.92	17,585.07	19,277.99	22,223.36
Net Income	15,271.20	7,516.95	10,422.56	13,618.91	17,139.30	21,004.40	25,260.39	30,188.57	35,352.15	41,031.82	44,981.98	51,854.51

Annual Profit and Loss Account

	2018	2019	2020
Sales	2,908,262.59	3,344,501.98	4,013,402.38
Net Sales	2,908,262.59	3,344,501.98	4,013,402.38
Cost of Goods Sold	2,098,820.00	2,378,848.00	2,658,876.00
Gross Profit	809,442.59	965,653.98	1,354,526.38
Operation Expenses
Salaries & Wages	111,756.00	115108.68	118561.9404
Depreciation	2,400.00	2,400.00	2,400.00
Rent	48,000.00	48,000.00	48,000.00
Office Supplies	6,000.00
Utilities	6,600.00	6666	6732.66
Insurance	14,400.00	14688	14981.76
Travel	2,035.51
Maintenance	240.00	720	2160
Advertising	165,150.00	166801.5	168469.515
Licenses	4,800.00	4,800.00	4,800.00
Total Operation Expenses	361,381.51	359,184.18	366,105.88
Income From Operations	448,061.08	606,469.80	988,420.50
Interest Income (Expense)	0.00	0.00	0.00
Income Before Income Taxes	448,061.08	606,469.80	988,420.50
Income Tax Expense	134,418.32	181,940.94	296,526.15
Net Income	313,642.76	424,528.86	691,894.35

Cashflow Statement

		2018	2019	2020
Cash received from customers	‘000	1,647	1,970	2,459
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	‘000	377	462	593
Cash flow from operations	‘000	1,255	1,540	1,975
Capital Expenditure	‘000	(490)	0	0
Cash flow available for loan repayment	‘000	765	1,540	1,975
	000
Equity Injection	000	800	0	0
Cash flow available for shareholders	‘000	1,565	1,540	1,975
Dividend	‘000	(157)	(184)	(228)
Net cash balance	‘000	1,409	1,725	2,203
Cash balalance b/f	‘000	0	1,409	3,065
Net cash balance	‘000	1,409	1,656	2,048
Cash bal c/f	‘000	1,409	3,065	5,113

Statement of Financial Position

Balance Sheet as at 31st December
	FY-[2018]	FY-[2019]
Current Assets
Cash	634,000	1,082,340
Inventories	100,000	100,000
Accounts receivable	127,057
Pre-paid expenses	50,000	51,000
Total	911,057	1,233,340
Fixed Assets
Property and equipment	334,000	334,000
Less accumulated depreciation (Negative Value)	(24,000)	(48,000)
Total	358,000	382,000
Total Assets	1,269,057	1,615,340
Current Liabilities
Accounts payable	344,438	386,641
Income taxes payable	103,331.40	296,526
Total	447,769	683,167
Owner Equity
Investment capital	507,645	507,645
Accumulated retained earnings	313,643	424,528
Total	821,288	932,173
Total Liabilities & Stockholder Equity	1,269,057	1,615,340