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Executive Summary:
The financial profitability will eventually be change because the financial aspect will be revise
Chapter V – Financial Aspect
1. Revise the project cost. Consider all items/cost before starting/operating the busniness
2. Prepare pre-operating cash flow and pre-operating balance sheet
3. Total project cost account must be same in the technical aspects. Therefore, revise the classification of account
presented in table 3.1 t0 3.25
4. Revise service revenue amount and it must be net of vat in the income statement.
5. Revise projected income statement, balance sheet and cash flow as well as financial analysis.
Output Tax = Service Revenue X 12/112
Input Tax = (Rent Expense + Accounting & Audit Fees + Supplies Expense + Marketing Expense + Training Professional
Development Cost) multiply by 12/112
Output Tax less Input Tax = Net VAT Payable.
The following effect/changes are:
1. The service revenue in the income statement must be net-of-output tax
2. The Rent Expense, Accounting & Audit Fees, Supplies Expense, Marketing Expense, Training Professional
Development Cost must be net-of-input tax
3. The net income in the income statements will eventually change.
4. Change the Projected Statement of Comprehensive Income to Projected Income Statement.
5. Change the Balance Sheet to Projected Statement of Financial Position
6. The Projected Statement of Financial Position, because the VAT payable will change.
7. Revise the Projected Cash Flow Statement
8. The Financial Statement Analysis will change because the Projected Income Statement and Projected Financial
Statement