SHE ON WHEELS Page 16 SHE ON WHEELS Page 17 SECTION 6 FINANCIAL When starting

She on wheels page 16 she on wheels page 17 section 6

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SHE ON WHEELS Page 16
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SHE ON WHEELS Page 17
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SECTION : 6 FINANCIAL When starting up a taxi service the first thing to consider is what it costs to get establish for business. Taxi service costs high while startup for a number of reasons, but can be incredibly profitable in the long run. A taxi service can be start at small level with a few cars and drivers, and be expanded gradually as you begin to profit. The cost of starting a taxi business is largely depends on the area where we locate our business. During the financial planning of staring a taxi service we have considered number of initial expenses. Carefully evaluating these expenses can help us to determine the overall startup costs of opening a taxi business, as well as assist us in forecasting future expenses. The initial expenses that we are experiencing in starting a taxi service are vehicles, licensing, insurance, rent of office(garage ), maintenance expense and equipment (like drivers, petrol(gas),internet service ,safety cameras etc. SHE ON WHEELS Page 18
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PROFIT AND LOSS STATEMENT: Income Statement YEAR 2017 2018 2019 Amount in Rs. Sales 2,300,000 5525000 12043750 less: Cost Of Sales 275,000 600000 1050000 Gross Profit 2,025,000 4925000 10993750 Expenses : Salaries and Administrative expenses 798,000 997,500 1,246,875 Office supplies 20,000 25,000 31,250 Sales and Marketing expenses 30,000 37,500 46,875 Maintenance expense 350,000 437,500 546,875 Internet 10,000 12,500 15,625 Electricity Expense 18,000 22,500 28,125 Telephone expense 18,000 22,500 28,125 Others Expenses: - - Drivers Card 720 240 300 Rent expenses 180,000 225,000 281,250 Insurance 72,000 90,000 112,500 Training expense 36,000 12,000 15,000 Depreciation expense 20,000 20,000 20,000 - - less: Total Expenses 1,552,720 1,902,240 2,372,800 Operating Income 472,280 3,022,760 8,620,950 Less: Interest (5.75%) 57,500 62,000 46,500 Income before Tax 414,780 2,960,760 8,574,450 less: Tax Expense (30%) 124,434 888,228 2,572,335 Net Income 290,346 2,072,532 6,002,115 SHE ON WHEELS Page 19
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Interpretation Our sales are increasing in year 2018 and 2019 as compared to 2017. This increase in sales just because of increase in cars and customers. . Interpretation Our gross profits are inclining in year 2018 and 2019 as compared to 2017. This increase in gross profit is due to increase in sales with an increasing rate while COS is increasing at a declining rate. SHE ON WHEELS Page 20
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Interpretation The net income of the year 3 is very high as compared to first year 2017. PROFIT RATIOS: X SHE ON WHEELS Page 21
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Interpretation The gross profit margin is increasing from 2017 to 2019. In the 3 rd year gross profit margin is high as compared to first year 2017. Interpretation The pretax profit margin is increasing from 2017 to 2019. From this interpretation we can say that company have good control over its expenses. Interpretation The net income is increasing from 2017 to 2019 due to increase in sales at an inclining rate. SHE ON WHEELS Page 22
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BALANCE SHEETX Balance sheet Account description 2017 2018 2019 Current assets: Amount in Rs. Cash and cash equivalents 3000000 4000000 5500000 prepaid insurance 72000 75000 100000 computer equipment 15000 5000 25000 Office supplies 20000 25000 35000 Printer 5000 6000 15000 Furniture and fixture 10000 15000 20000 Generator 15000 12000 15000 other assets 167160 10000 A/R 185840 Total current assets 3085840 4148000 5710000 Noncurrent assets: Car equipment 1400000 2400000 3500000 less: accumulated dept. 185840 200000 258540 Total assets 43,00,000 6348000 89,51,460 Liabilities and owners’ equity Current liability: Tax payable 20000 60000 75000 Accrued Interest 100000 46800 57865 Rent payable 180000 550000 650000 Noncurrent liability: Loan payable 1000000 800000 600000 Capital
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  • Spring '12
  • cynthiasloan

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