TABLE OF CONTENTS
INTRODUCTION
DISTRIBUTION TECHNIQUES
REGULATORY REQUIREMENTS
FACTORS AFFECTING THE DEMAND FOR PACKAGING BAG
BREAKDOWN OF COST ITEMS
ESTIMATED COST FOR FIVE YEARS
BREAKDOWN OF REVENUE ITEM FOR THE FIRST FIVE YEARS
PRODUCTION ESTIMATES
DEMAND ESTIMATES
REVENUE ESTIMATES
CALCULATION OF SUBSEQUENT YEAR ESTIMATES
PREPARATION OF FINANCIAL STATEMENT.
TRIAL BALANCE.
MANUFACTURING, TRADING, PROFIT AND LOSS ACCOUNT
BALANCE SHEET.
PROJECT CASH FLOW
CONCLUSION AND RECOMMENDATION
INTRODUCTION
DISTRIBUTION TECHNIQUES
We
shall purchase motor vehicle (Trucks) for the distribution of our
products to various locations both within and outside Ifako town.
REGULATORY REQUIREMENTS
We
shall comply with the regulatory requirements of NAFDAC, Standards
organization of Nigeria (SON) and other regulatory agencies in the local
government area. This will facilitate effective distribution of the
product to give us competitive edge over our competitors.
FACTORS AFFECTING THE DEMAND FOR PACKAGING BAG
a. Poor weather
The demand for packing bags is always at its lowest ebb during the raining season and the harmattan.
b. Incessant power failure may affect the demand as cost of diesel consumption may be too high.
BREAKDOWN OF COST ITEMS IN TABLE 1.0
Fixed Costs:
1. Land and building: A land will be acquired and the factory will be built. Both land and building are estimated at N7,500,000
2. Furniture and fittings: It includes office tables and fittings, air conditioners, tanks and taps. It is estimated at N 350,000
3. Vehicles 2 bus/trucks: will be bought at the total cost of N1,500,000
4. Generator plant: This will be bought at the cost of N650,000
5. Cutting machine: It has been estimated to cost 2,500,000 each hence 2 cutters shall be bought at N5,000,000
6. Extruder machine : Extruder machine will be bought at the cost of N8,000,000
7. Miscellaneous:
This expenses includes the cost of installing the machine and
compressors and other ancillary equipment needed to make the packing
bags to be standard. Both cost have be estimated at N150,000.
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