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Financial Plan Overview and Working Capital

The financial plan outlines an initial capital of Ksh 1,000,000 for the business, detailing pre-operational costs totaling Ksh 211,330. The working capital, calculated as total capital minus pre-operational costs, amounts to Ksh 788,670. This plan aims to maintain a stable economic atmosphere for the company's operations.

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ANDREW ODEKE
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6 views1 page

Financial Plan Overview and Working Capital

The financial plan outlines an initial capital of Ksh 1,000,000 for the business, detailing pre-operational costs totaling Ksh 211,330. The working capital, calculated as total capital minus pre-operational costs, amounts to Ksh 788,670. This plan aims to maintain a stable economic atmosphere for the company's operations.

Uploaded by

ANDREW ODEKE
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CHAPTER FIVE

FINANCIAL PLAN
5.0 INTRODUCTION
The company will start with an estimated initial capital of ksh 1000000. The financial plan will show
the general performance of the business activities. The owner of the business will try to keep the
economic atmosphere stable.

5.1 PRE-OPERATIONAL COST

EXPENSES AMOUNT
Wages and salary 91000
Rent 6000
Electricity 5000
Water 4000
Repair and maintenance 1000
Advertisement 4000
Stationery 1000
Transport 7000
Service charge 1000
Telephone 3000
Insurance 9000
Loan repayment 5000
Miscellaneous 9000
Raw material 65000
TOTAL 211330

5.2 ESTIMATION WORKING CAPITAL

It is required amount to meet day to day operations

Working capital = total capital -pre-operational cost

Working capital = 1000000-211330

Working capital = ksh 788670

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