assignment 2 - la bamba - 1. Introduction With the...

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With the inherited money, I will start a Mediterranean restaurant. This industry has got grate involvement with the lifestyle of the people in this country. I decided the restaurant to be named as La Bamba. This is basically a Mexican word. It means the ‘hot chock’. There is also a very famous mexican folk song named La Bamba. 2. Scope A business plan covers all the functional areas of business. But in this case, I will explain only the financial plan of the business. Financial plan of the business illustrated the expected profitability and future projection of financial health of the business. The financial plan consists of pro forma balance sheet, pro forma profit & loss account and trial balance. In the pro forma income statement all the relevant costs are stated. The balance sheet consists of assets, liabilities and capital amount that is relevant to the business. 3. Financial Plan La Bamba 2009 2010 Sales £1,196,000 £1,270,000 Cost of Sales £589,600 £656,000 Gross Margin £606,400 £614,000 Gross Margin % 50.70% 48.35% Expenses Payroll £345,350 £407,000 Sales and Marketing and Other Expenses £24,000 £30,000 Depreciation £9,600 £9,600 Renovation Expenses £150,000 £0 Utilities £6,000 £6,000 Insurance £0 £0 Rent £36,000 £36,000 Payroll Taxes £0 £0 Other £0 £0 Total Operating Expenses £570,950 £488,600 Profit Before Interest and Taxes £35,450 £125,400 Interest Expense £10,675 £8,331 Taxes Incurred £1,432 £41,121 Net Profit £23,343 £75,948
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This note was uploaded on 04/21/2011 for the course BUSINESS AAF001-1 taught by Professor Dr.tony during the Spring '11 term at University of Bedfordshire.

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assignment 2 - la bamba - 1. Introduction With the...

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