PROJECTED PROFIT AND LOSS

9.2 PROJECTED PROFIT AND LOSS

As the profit and loss table shows, MFL expects to continue its steady growth in profitability over the next three years of operations.

Pro-forma profit and loss (Monthly) figure in Lac

Particulars	Year 1	Year 2	Year 3
Monthly Sales	40	50	60
Direct Cost of Production	24	30	36
Gross Margin	16	20	24
Gross Margin%	40%	40%	40%
Less Expenses	-	-	-
Salary and wages	4.10	4.63	5.15
Rent	0.50	0.50	0.50
Utilities	0.35	0.40	0.50
Packing Cost	5.00	5.50	6.00
Depreciation	0.40	0.40	0.40
Repairs and Fuel	0.30	0.35	0.40
Distributor Commission	1.00	1.50	2.00
Tax, damage return, Insurance, Fuel	2.50	3.00	3.00
Dividend to the  Share holders	1.00	1.50	2.00
Total operating Exp	15.15	17.78	19.95
Net profit =	0.85	2.22	4.05

Pro  Forma Balance Sheet (First 1 Year)

Liabilities and Capital	Tk	Assets	Tk
Paid in Capital	1,00,00,000/-	Raw Materials (2+2)	4,00,000/-
Retained Earnings	10,20,000/-	Cash	24,10,000/-
		Machinery +  Van+ Furniture	36,20,0000/-
		Accumulated Depreciation	4,80,000/-
		Factory Advance (Adv+ Rent)	11,00,000/-
		Salary & Wages Advance	25,00,000/-
		Packaging Advance	7,60,000/-
		Utility  Bill Advance	4,00,000/-
		Rickshaw  Van 20	3,00,000/-
		Good will (Legal+ advertis.)	2,50,000/-
Total=	1,10,20,000/-	Total=	1,10,20,000/-

PRODUCTION PROCESS:

Ingredient Weighting>> Mixing>>Molding>>Cutting>>Baking>>Cooling>>Packaging>>Biscuit