Financial Components Expenses Cost for the

Financial Components

Expenses Cost ($) for the 1 st year List of Expenses 40000 Maintenance & Repair Advertising & Promotion 300 000 Rent 500 000 Supplies 600 000 Total 1 440 000

1 st of January 2017, so accounting period is from January 2017. It is income statement for one month. The size of machine will be for 16 places (4*4) with 3 extra units of food and 2 times a day it will be added by distribution agents if necessary. So, number of items for one day will be equal 16*3*2=96 items per day for one machine. As we have 30 machines, Inventory=30 days*96 items per day per machine*30 machines*100 KZT (in average for one item from wholesale)=8 640 000 Income Statement For January, 2017 Revenue: …………………. . . 5 970 000 COGS……………(4 870 000) Gross profit margin……………… 1 100 000 Expenses: Wages expense……………. . . (845 000) Advertising & Promotion. . ……………(25 000) Maintenance & Repair…………………. . . (40 000) Rent expense……………. . …. ……. . (41 700) Supplies expense……………. . . (50 000) Earnings before depreciation and taxes……. …. . . 98 300 Depreciation expense (10 year useful life)…………. (82 500) Earnings before taxes……………. . 15 800 Taxes (20%)……………………. . (3 160) Net profit……………………. . . 12 640

Balance Sheet January 31, 2017 Assets Current assets: Cash 417 640 Supplies 150000 100 000 Inventory Beg: 86400004870000 Accumulated depr End: 3 770 000 (82500) Equipment 9 900 000 Total assets 14 105 140

Payback period=3, 53 years Year CF Total CF Unrecoverable amount 0 - - (18 540 000) 1 417640*12 5 011 680 (13 528 320) 2 1 645 420 * 4 6 581 680 ( 6 946 640) 3 4 534 000 (2 412 640) 4 4 534 000 0. 53

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