Cost Sheet Projections at different capacities
Preparation of Financial Statements along with the financial ratios
a) Income statement Estimated values
b) Balance Sheet Estimated values
c) Cash flow statement
d) Ratios Expected financial performance
ROI
ROE
CR
IRR
NPM
OPM
Working Capital Requirement Statement
Units Proposed to Produce = @
Cost Sheet Units Proposed to Produce = @ 20000
10000 units
Total
Qty cost= Unit
Particulars Unit cost Requirem cost * Qty Unit cost
ent requireme
nt
Direct material
Direct labor
Direct overheads
Opening stock of raw materials
(-)Closing stock of raw materials
Prime cost
Factory rent
Premium paid towards factory
Factory wages
carriage inwards
Quality check at factory outlet
Telephone charges at factory
Stationary charges at factory
Carriage outwards
(+)Opening stock of WIP goods
(-) Closing stock of WIP goods
(-) Loss of material due to accident
(-) Depreciation of machinery
(-) Depreciation of plant and equipment
Works Cost
Administrative office rent
Managers salary
Employees insurance premium
Telephone charges
Managers commission
Postal charges
Stationary charges
Transportation charges
Computer Handling charges
Bank Transaction Charges
Water & Municipal Charges
Electricity Charges
Packaging charges
(+) Opening stock of finished goods
(-) Closing stock of finished goods
Cost of
goods
manufact
Administrative and Office Expenses ured
Dicounts offered to customers
Commission paid to dealers/distributors
Marketing & Promotional expenses
Free offers to customers
Transportation charges towards distribution
Cost of
goods
Selling and Distribution Expenses sold
(+) Profit
margin
Sales per
unit
Proposed units to produce = 10000 units
Present
Income Statement Year(Y) Y+1 Y+2 Y+3
sales (Y)
Sales Revenue (1+g)
(-) Cost of Goods Sold
Gross Profit
OAE*(1+i
nflation
(-) Office and Administrative Expenses rate)
SDE*(1+in
flation
(-) Selling and Distribution Expenses rate)
Operating Income
(-) Non-operating expenses
Earnings Before Depreciation, Interest, taxes and Amortization
(-) Depreciation
Earnings Before Interest & Taxes
(-) Interest
Earning Before Taxes
(-) Taxes @ 23%
Earnings after taxes
Investment
Sources of Funds (Liabilities)
Owners Equity
Peer to
peer
Term Loans lending
SIDBI
Loans
Net Working capital (Current Assets - current Liabilities) (Mudra)
SFC
DIC
EXIM
Application of funds (Assets) Bank
NABARD
Specialise
d
Financial
Institution
s such as
IFCI, IDBI,
IIBI, SISI,
Microfina
nce
Companie
s, Start-up
India Prog
Venture
capital
firms
Units Proposed to Produce = @ 20000 units Units Proposed to Produce = @ 8000 units
Total
Total cost= Unit cost= Unit
Qty Requirement cost * Qty Unit cost Qty Requirement cost * Qty
requirement requirem
ent
Prime cost
Works cost Prime cost + Indirect factory cost
Cost of goods
manufactured Works cost + Administrative & Office expenses
Cost of goods sold Cost of goods manufactured + Selling and distriution ex
Y+4 Y+5
IRR
Office expenses
Selling and distriution expenses
Cost Sheet
Particulars
Direct material
Direct labor
Direct overheads
Opening stock of raw materials
(-)Closing stock of raw materials
Prime cost
Factory rent
Premium paid towards factory
Factory wages
carriage inwards
Quality check at factory outlet
Telephone charges at factory
Stationary charges at factory
Carriage outwards
(+)Opening stock of WIP goods
(-) Closing stock of WIP goods
(-) Loss of material due to accident
(-) Depreciation of machinery
(-) Depreciation of plant and equipment
Works Cost
Administrative office rent
Managers salary
Employees insurance premium
Telephone charges
Managers commission
Postal charges
Stationary charges
Transportation charges
Computer Handling charges
Bank Transaction Charges
Water & Municipal Charges
Electricity Charges
Packaging charges
(+) Opening stock of finished goods
(-) Closing stock of finished goods
Administrative and Office Expenses
Discounts offered to customers
Commission paid to dealers/distributors
Marketing & Promotional expenses
Free offers to customers
Transportation charges towards distribution
Selling and Distribution Expenses
Month 1 2
Units to be sold 2 2.1
Cost per unit
Selling Price Per unit
Profit Per Unit
BEP Statement SP /Unit 30
Variable Costs Amount %
Direct Material 7.5 25%
Direct labor 1.5 5% 5%
Direct overheads 0.75 2.50% 0.025
Factory wages 1.5 5%
carriage inwards 0.75 2.50%
Quality check at factory outlet 0.15 0.50% 1%
Carriage outwards 0.75 2.50%
Managers commission 0.75 2.50%
Transportation charges 0.15 0.50%
Bank Transaction charges 0.375 1.25% 0.0125
Electricity charges 0.15 0.50%
Packaging charges 0.375 1.25%
Discounts offered to your customers 3 10%
Commission paid to dealers/distributors 0.15 0.50%
Marketing & Promotional expenses 1.5 5%
Free offers to customers 0
Transportation charges towards distribution 1.5 5%
20.85 70%
Fixed Costs
Factory rent 0.5
Premium paid towards factory 0.1
Telephone charges at factory 0.1
Stationary chargest at factory 0.1
Depreciation 0.1
Administrative office rent 1
Managers salary 1
Employees insurance premium 0.5
Telephone charges 1
Postal charges 1
Stationary charges 1
Computer Handling Charges 1
Water & Municipal Charges 0.5
7.9
28.75
Profit per unit 5
Selling Price per unit 33.75
GST@5% 1.6875
Selling Price per unit 35.4375
BEP (Sales) 26.33333
6.583333
32.91667
34 units for 1 years
3 4 5 6 7 8
2.205 2.31525
9 10 11 12
8.62025
Year NPAT
1 1000
2 1500
3 2000
4 2500
5 2000
Investment -10000
4%
