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Working Capital Requierment

The document outlines the working capital requirements and depreciation expenses for a business over a 90-day period, detailing costs for raw materials, salaries, utilities, and other general expenses, totaling 24,375,297. It also includes a summary of investment costs, with total fixed investment required at 25,121,700 and total investment cost at 51,926,509. Additionally, it breaks down the depreciation and amortization for various assets, amounting to 4,088,400.

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27 views3 pages

Working Capital Requierment

The document outlines the working capital requirements and depreciation expenses for a business over a 90-day period, detailing costs for raw materials, salaries, utilities, and other general expenses, totaling 24,375,297. It also includes a summary of investment costs, with total fixed investment required at 25,121,700 and total investment cost at 51,926,509. Additionally, it breaks down the depreciation and amortization for various assets, amounting to 4,088,400.

Uploaded by

MOTI
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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WORKING CAPITAL REQUIERMENT & DEPERACIATION EXPENSES

Raw Material COSTS For 90 days


Year-1 Costs for
Description of Costs Total Costs
Revenue 90 days
Raw Material at 65% Revenue 81,438,750 69,222,938 17,305,734
Total Costs 29,610,000 69,222,938 17,305,734
HUMAN RESOURCE REQUIREMENT (SALARY & BENEFITS)
Descriptions Year 1 90 days Salary
Employees Salary 13,225,000 3,306,250
Employees Benefits 1,322,500 330,625
Total 14,547,500 3,636,875
OTHER GENERAL EXPENSES
Descriptions Costs Year-1 Costs 90 days
Professional Expense 250,000 62,500
Stationary & P.T.T 150,000 37,500
Miscellaneous Expense 75,000 18,750
Promotional & Selling Expense 393,838 98,460
Total Other Expenses 868,838 217,210
UTILITIES
Consumption Annual Usage Total cost/ Cost of 90
Description
Rate Min, KWH & (M3) Annum days
Telephone Cosumption 0.74 birr/min 120,000 88,800 22,200
Electricity Consumption 0.65 birr/Kw 200,000 130,000 32,500
Water consumption 4.8 m3 15,000 72,000 18,000
Total 290,800 72,700
FUEL, OIL AND LUBRICANTS FOR MACHINERIES
Annual Fuel Costs for
Description Cost/Litter Total Cost
need (Liters) 90 days
Trucks/Vehicles 18.00 25,000 450,000 112,500

INSURANCE
Description Total cost Cost of Insu.
Fixed Assets 21,004,500 3,150,675
Total 21,004,500 3,150,675

REPAIR & MAINTAINACE


Description Total cost Cost of Rep &
maintain
Premises and Civil Work 750,000 18,750
Plant Machinery & Equipment 14,750,000 368,750
Office Furniture and Equipment 1,632,000 40,800
Plant Vehicles 3,872,500 96,813
Total 21,004,500 525,113
WORKING CAPITAL SUMMARY

Description Total Cost

Raw Material Cost 17,305,734

Salary & Benefits 3,636,875

Utilities 72,700

Fuel, Oil & Lubrications 112,500

Insurance 3,150,675

Repair & Maintenance 96,813

Other General Expenses 217,210

GRAND TOTAL 24,375,297

DEPRECIATION & AMORTIZATION

DEP. RATE COST OF D &


DESCRIPTION TOTAL COST
(%) A
37,50
Premises and Civil Work 750,000 5%
0
Plant Machinery & Equipment 14,750,000 20% 2,950,000
Office Furniture and Equipment 1,632,000 20% 326,400
Plant Vehicles 3,872,500 20% 774,500
Total 21,004,500 4,088,400
SUMMARY OF INVESTMENT
Equity Required Total
Description
Investment (Br.) Financing (Birr) Investment
Pre-paid Rents 596,000 596,000.00
Premises and Civil Work 750,000 750,000.00

14,750,000 14,750,000.00
Plant Machinery and Equipment
Office Furniture and Equipment 1,632,000 1,632,000.00
Raw Materials at Stock 2,971,200 2,971,000.00
Plant Vehicles 3,872,500.00 3,872,500.00
Pre- production costs 550,000.00 550,000.00
Total Fixed Investment Required 25,121,700 25,121,500
2,429,7
Working Capital 24,375,297 26,805,009
12
Total Investment Cost 27,551,412 24,375,297 51,926,509

INVESTMENT STRUCTURE
Capital Contribution 27,551,412
Bank Financing 24,375,297
TOTAL INITIAL
51,926,709
INVESTMENT

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