BUSINESS PLAN HOT HOT CORN

PRICING  We use approach to pricing, which involves
STRATEGY the costs for producing, distributing, and selling the
Cost Based product by adding a fair rate of return to compensate
Pricing for the efforts and risks taken by our company. It is a
simple way to calculate the price of the product by
calculating the total cost in which the desired profit is
added to determine the final selling price.

We offer free shipping. The word “free” is always

attractive to customers, and free shipping is usually a

PROMOTION Free reasonable discount. They can get free shipping when
STRATEGY
Shipping & they purchase above RM50. By memberships, we give

Memberships our customer loyalty card when they buy

our products. For their next purchases, they can get

stickers to redeem discount at 10% OFF.

DELIVERY Delivery We choose J&T Express as our delivery man. Their cost
Cost of parcels is based on rates which are quite affordable
INDUSTRY compared to other services. J&T Express does just
AREA Easy not offer affordable shipping rates, but they also
Establish offer other features that are beneficial to their
clients. We can request our package to be picked
up right at the comfort of our HQ which is free of
charge.
Our company production can easily be found in Kuala
Lumpur. Kuala Lumpur and its surrounding urban
areas form the most industrialised and economically,
the fastest growing region in Malaysia. Not just that,
the population at this area is high so we can easily gain
customers.

51

MARKETING EXPENSES

NO. ELEMENT QUANTITY PRICE/UNIT TOTAL PRICE
(UNIT) (RM) (RM)
1. Signboard 1 580 580
2. Brochures / Flyers 800 pcs 0.05 40
3. Billboards 2 unit 300 600
4. Loyalty Cards 1,000 pcs 0.05 50
5. Instagram Advertisement monthly 360 360
1,630
TOTAL
(RM)

52

MARKETING EXPENDITURES RM RM
580
DESCRIPTION 250 360
40
Fixed Asset / Capital Expenditure: 600 940
- Signboard 50 1,880

Working Capital / Monthly Expenditure:
- Instagram Advertisement

Other Expenditures:
- Registration for Signboard Licenses by DBKL
- Brochures / Flyers
- Billboards
- Loyalty Cards

TOTAL (RM)

53

OPERATIONAL
PLAN

54

OPERATIONAL OBJECTIVE
The operational objective of Hot Hot Corn are as follows:

 Maintaining the quality of our product when produce high volume of production.
 Provide the best service to customers while raising the company's name and be the

best among the best.
 Can produce our product more than 1,000 pack in daily.
 Add more machine and other equipment to produce more product in daily.

MANPOWER PLANNING
Hot Hot Corn employs 4 of workers to manage the product in our factory. Each of them was
given their specific work. Their task are as follows:

 Employee have to check the raw material that means they have to make sure the raw
material is ready before to go to the next process.

 Employee have to check the machine that process the raw materials. They have to
always checking up the process of raw material become popcorn and mix them in our
flavours. They also have to maintain the quality of our product

 Employee have to pack all the popcorn in our packaging that we served to them. They
have to measure the weight of popcorn according to our SOPs.

 Employee responsible to manage the product and quality check before delivers to our
customers.

Operational Executives

Worker 1 Worker 2 Worker 3 Worker 4
55

REMUNERATION PLAN

Although employers and employees have differing motivations for developing a remuneration
strategy, it is important to note that an effective remuneration strategy is designed to assist
the organisation in achieving its strategic goals and objectives.

POSITION NUMBER OF MONTH EPF SOCSO TOTAL
WORKERS SALARY (13%) (2%) (RM)
(RM) (RM)
(RM)

Workers 4 = RM1300 X 4 = RM169 X 4 = RM26 X 4 = RM5,200 +

= RM5,200 = RM676 = RM104 RM676 +

RM 104

= RM5,980

56

OPERATIONAL PROCESS

The operational plan is one of the most important of the business. The planning must be
systematic and effective. The operational plan will help us to focused and organized on this
part of business plan. Every equipment and products also must be in a good condition for a
good quality of product. For our local product Hot Hot Corn, we must keep our raw material
which is corn cereal are made by Muslim product and halal to fulfil customer demands.

Activity Flow Chart- Step by step from input (raw material) to output (finished
good)

Collect raw material Make sure all raw Turn on the kettle and
from the supplier before material in a good the warmer with the
process of making HOT condition and clean suitable temprature

HOT CORN

Insert the ingredients Let ingredients heat up Once popping has
such as popcorn oil, and start popping slowed to a couple of
popcorn cereal and pops every few seconds
then dump kettle out
popcorn salt

Flatten the popped Keep the popcorn on Finally, the perfect
popcorn according to the packaging and popcorn is produced

the flavors labelling according to and sell to the
the flavors customers

57

PROCESS FLOW CHART
The primary objective of process flow mapping is to find ways to improve the steps in the
diagrammed process. After a process flow map is created, all of the areas containing
inefficient steps can be discovered. Our companies take this information to d evelop
improvements.

Recieved all raw material from supplier to
process to make popcorn

Check the quality and condition of raw
material and seprate the defeat stock

Hit the warmer with suitable temprature

Put all of ingredients and lets
its start popping

Flatten the popped popcorn with variety
of flavors

Packaging and labelling the
perfect popcorn into custom

made plastic using the
wrapping and sealing machine

Store all of our
packs inside the

warehouse

Deliver the parcel to our customer who
kafe order through shopee, instagram and

facebook

58

WORKER’S SCHEDULE
The fundamental objective of scheduling is to arrange the manufacturing activities in such a
way that the cost of production is minimized and the goods produced are delivered on due
dates.

TIME ACTIVITY
8:00 a.m. All workers punch in.
8:00 a.m. - 1:30 p.m. Workers select and separate the kernels.
When the kernel was selected they have to
1:30 p.m. - 2:30 p.m. clean it from the dirt to make it clean before
2:30 p.m. - 3:30 p.m. next process.
Lunch break and prayer.
3:30 p.m. - 4:00 p.m.
Process the kernel in 90 Celsius. Wait until
4:00 p.m. - 4:45 p.m. the kernel become the popcorn. When the
4:45 p.m. - 5:00 p.m. kernel transform to popcorn, the workers
mix the popcorn in the flavour.

After finish the process of popcorn, the
popcorn have to left for a while to decrease
the temperature to control the texture and
moist the popcorn before ready to
packaging process.
Process packaging the popcorn and others
workers start to clean their machines.

Arrange all the popcorn in the store.

5:00 p.m. - 6:00 p.m. The workers identify quantity of popcorn
6:00 p.m. that customer order. They have to wrap and
pack it into the parcel get ready before
deliver to our customer using courier.
Punch out.

59

PRODUCTION SCHEDULE
Hot Hot Corn adjust the production scheduling based on the availability of resources and client
orders. The goal of a production schedule is to adequately balance customer needs with the
resources that are available whilst operating in a cost-effective manner. If the production
schedule we create is not accurate and feasible given our available resources, we will have
problems getting items produced and delivered to your customers on time. Thus, we arrange
the manufacturing activities in such a way that the cost of production is minimized and the
goods produced are delivered on due dates.

MATERIAL REQUIREMENT
One of the primary material requirements planning objective is that it reduces inventory. It
accurately determines the required materials for every product. As a result, it helps the
company procure materials as and when needed and avoids excessive build-up.

Step 1: Identify and list down the raw materials required
 Caramel Popcorn, Salted Egg Popcorn, & Chocolate Popcorn
NO. ITEM
1. Corn
2. Salt
3. Sugar
4. Butter
5. Corn Syrup
6. Egg
7. Caramel Sauce
8. Chocolate Sauce

60

Step 2: Preparing the bill of raw materials AMOUNT REQUIRED FOR 1
PACK
NO. ITEM 0.7 kg
0.2 kg
1. Corn Kernel 0.2 kg
2. Salt 0.30 kg
3. Sugar 0.36 kg
4. Butter 0.15 kg
5. Corn Syrup 0.20 kg
6. Egg 0.20 kg
7. Caramel Sauce
8. Chocolate Chip

Step 3: Calculate the quantity of raw materials

NO. ITEM QUANTITY PRICE PER UNIT TOTAL AMOUNT
(RM) (RM)
1. Corn Kernel 1kg 0.7 kg 7.00 4.90
2. Salt 1kg 0.2 kg 2.50 0.50
3. Sugar 1kg 0.2 kg 3.20 0.64
4. Butter 1kg 0.30 kg 4.90 1.47
5. Corn Syrup 1kg 0.36 kg 5.00 1.80
6. Egg 1kg 0.15 kg 13.90 2.09
7. Caramel Sauce 1kg 0.20 kg 18.80 3.76
8. Chocolate Chip 1kg 0.20 kg 18.80 3.76
TOTAL (RM) 18.92

= RM18.92 x 3,250
= RM61,490.00

61

Step 4: Identify Suppliers

NO. NAME OF SUPPLIER TYPE

1. Defeem Sdn. Bhd.

No. 1, Jalan TSB 5, Taman Industri, Supply corn kernel and

47000, Sungai Buloh Selangor. corn syrup.

03-6140 6900

https://www.defeem.com.my/

2. Central Sugars Refinery Sdn. Bhd.

(CSR) Supply sugar

Batu tiga, 40000, Shah Alam, Selangor.

03-5510 1002 Supply salt
http://www.central-
sugars.com.my/
3. Halagel (M) Sdn Bhd
17, Jalan Wangsa Delima 1a, Pusat Bandar
Wangsa Maju, 53300 Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur.

018-210 6962
http://halagel.com.my/

4. Lembaga Pemasaran Pertanian Supple egg
Persekutuan (FAMA)
Lot 17304, Jalan Persiaran 1, 68100 Batu
Caves Selangor.

03-6126 2020
http://www.fama.gov.my/web/pub/utama

5. Beryl’s chocolate

Jalan Imbi 38 Jalan utara 55100 Kuala Supply caramel sauce

Lumpur Kuala Lumpur. and chocolate chip

62

03-2145 8211
http://www.berylschocolate.com/

6. Buttercup Malaysia

B-11-01 The Ascent Paradigm, No. 1 Jalan Supply butter

SS7/26A Kelana Jaya,47301 Petaling Jaya,

Selangor, Malaysia.

03-7882 6678
http://buttercup.com.my/

63

CAPACITY PLANNING

The overall objective of strategic capacity planning is to reach an optimal level where
production capabilities meet demand for popcorns. Capacity needs include equipment, space,
and employee skills. If production capabilities are not meeting demand, it will result in higher
costs, strains on resources, and possible customer loss.

TIME OF QUANTITY OF PRODUCTION GOODS PER MONTH
PRODUCTION (UNIT) Popcorn Caramel

Monthly Monday – Saturday Popcorn Salted Egg
40pcs x 26days = 1,040 pcs Popcorn Chocolate
Monthly
Monday – Saturday
Monthly 55pcs x 26days = 1,430 pcs

TOTAL Monday – Saturday
30pcs x 26days = 780 pcs

3,250 pcs

ENDING STOCK

Proper inventory control helps to maintain continuity of production operations. This is because
it maintains a smooth flow of raw materials. So, there are no shortages of raw-materials
required for production process.

ENDING STOCK = FORECASTED DEMAND x 1% OF DEMAND
= 12,275 x 0.01
= 123 packs

64

SALES PRODUCTION

The sales-to-production method is a technique used in management accounting that is used
to analyse the profitability of two or more products derived from a single product. This single
product is known as the joint product.

PRODUCTS

CUSTOMER Popcorn Popcorn Popcorn TOTAL
SEGMENT Caramel (RM) Salted Egg Chocolate (RM)

Shopee 850 x RM25 (RM) (RM) RM52,000
Facebook = RM21,250 980 x RM25 250 x RM25 RM11,250
Instagram = RM24,500 = RM6,250 RM18,000
60 x RM25 RM81,250
170 x RM25 220 x RM25 = RM1,500
= RM4,250 = RM5,500
90 x RM25
270 x RM25 360 x RM25 = RM2,250
= RM6,750 = RM9,000

Monthly Sales
(RM)

65

LIST OF MACHINERY & EQUIPMENT

NO. PARTICULAR QUANTITY PRICE PER TOTAL
1. KETTLE CLEANER UNIT AMOUNT
Equipment (RM)
20 units (RM)
RM15 RM300

Defeem Sdn. Bhd. RM1,000

No. 1, Jalan TSB 5, Taman RM75

Industri, 47000, Sungai Buloh RM120

Selangor.

03-6140 6900

2. MIXER TUMBLER FOR 5 units RM200

FLAVOR SEASONING

POWDER

Defeem Sdn. Bhd.

No. 1, Jalan TSB 5, Taman

Industri, 47000, Sungai Buloh

Selangor.

03-6140 6900

3. PE GLOVE 15 units RM5
RM8
Actipack Industry Sdn

Bhd

No. 17, Jalan Anggerik

Mokara 31/63, Seksyen 31,

40460 Kota Kemuning, Shah

Alam, Selangor, Malaysia.

03-35121 1002

4. PE APRON 15 units

Actipack Industry Sdn

Bhd

66

No. 17, Jalan Anggerik

Mokara 31/63, Seksyen 31,

40460 Kota Kemuning, Shah

Alam, Selangor, Malaysia.

0-351211002

5. DISPOSABLE HEAD 30 units RM5 RM150
RM3 RM30
COVERS RM340
RM95 RM680
Actipack Industry Sdn
RM475
Bhd 67

No. 17, Jalan Anggerik

Mokara 31/63, Seksyen 31,

40460 Kota Kemuning, Shah

Alam, Selangor, Malaysia.

0-35121 1002

6. STAINLESS STEEL 10 units

THICKER EGG WHISK

MyKitchen Enterprise

No 1 & 3, Jalan Bandar

Rawang 3, Bandar Rawang,

48000 Rawang, Selangor

Darul Ehsan.

012- 567 1928

7. DOUBLE KITCHEN 2 units

WASHING SINK

MyKitchen Enterprise

No 1 & 3, Jalan Bandar

Rawang 3, Bandar Rawang,

48000 Rawang, Selangor

Darul Ehsan.

012- 567 1928

8. ZEBRA SAUCE PAN 5 units

MyKitchen Enterprise RM2,830

No 1 & 3, Jalan Bandar
Rawang 3, Bandar Rawang,
48000 Rawang, Selangor
Darul Ehsan.
012- 567 1928

TOTAL EQUIPMENT (RM)

68

NO. PARTICULAR QUANTITY PRICE PER TOTAL
AMOUNT
UNIT
(RM)
(RM) RM1,440

Machinery RM1,170

1. ELECTRO MAGNETIC 3 units RM480 RM1,920

FLOOR STAND POPPER – RM450

PEDESTAL 69

Defeem Sdn. Bhd.

No. 1, Jalan TSB 5, Taman

Industri, 47000, Sungai Buloh

Selangor.

03-6140 6900

2. ELECTRO MAGNETIC 3 units RM390
RM640
POPPER ON KNOCK- RM150

DOWN TABLE

Defeem Sdn. Bhd.

No. 1, Jalan TSB 5, Taman

Industri, 47000, Sungai Buloh

Selangor.

03-6140 6900

3. INDUSTRIAL HOT AIR 3 units

POPPER

Defeem Sdn. Bhd.

No. 1, Jalan TSB 5, Taman

Industri, 47000, Sungai Buloh

Selangor.

03-6140 6900

4. AUTOMATIC OIL PUMP 3 units

Defeem Sdn. Bhd.

No. 1, Jalan TSB 5, Taman

Industri, 47000, Sungai Buloh

Selangor.

03-6140 6900

TOTAL MACHINERY (RM) RM4,980

LIST OF MATERIAL OF PACKAGING

NO. PARTICULAR QUANTITY PRICE TOTAL

PER UNIT AMOUNT(RM)

(RM)

Packaging

1. STICKER Monday – 50 pieces / RM1,934.40

Saturday RM10

OMBAK EXCLUSIVE Popcorn = RM0.20

30-1, Jalan 18/32, Taman Sri Caramel

Serdang, Seri Kembangan, 127pcs x 26days

Selangor. = 3,302pcs

Popcorn

http://ombakexclusive.com.my/ Salted Egg

130pcs x 26days

= 3,380pcs

Popcorn

Chocolate

115pcs x 26days

= 2,990pcs

TOTAL (pcs)

= 9,672pcs

2. LOYALTY CARD Monday – RM0.05 RM483.60

Saturday

OMBAK EXCLUSIVE Popcorn

30-1, Jalan 18/32, Taman Sri Caramel

Serdang, Seri Kembangan, 127pcs x 26days

Selangor. = 3,302pcs

70

Popcorn

http://ombakexclusive.com.my/ Salted Egg

130pcs x 26days

= 3,380pcs

Popcorn

Chocolate

115pcs x 26days

= 2,990pcs

TOTAL (pcs)

= 9,672pcs

3. STAND UP POUCH Monday – RM0.50 RM4,836
RM7,254
Saturday

OMBAK EXCLUSIVE Popcorn

30-1, Jalan 18/32, Taman Sri Caramel

Serdang, Seri Kembangan, 127pcs x 26days

Selangor. = 3,302pcs

Popcorn

http://ombakexclusive.com.my/ Salted Egg

130pcs x 26days

= 3,380pcs

Popcorn

Chocolate

115pcs x 26days

= 2,990pcs

TOTAL (pcs)

= 9,672pcs

TOTAL PACKAGING (RM)

71

LOCATION OF OPERATION
This is where Hot Hot Corn is located:

72

OPERATIONAL LAYOUT PLANNING
 Production Layout

administration changing room

finished dispatch

good store work together of order
Raw preparation packaging
Material production
store

packaging
store

73

 Office Layout Office 1
Office 2
Office 3
Office 4

toilet toilet

74

OPERATIONAL COST AND COST PER UNIT

Operation cost per unit

Caramel Popcorn Salted Egg Popcorn Chocolate Popcorn

Profit = RM25.00 – RM13.82 Profit = RM25.00 – RM12.15 Profit = RM25.00 – RM15.91

= RM11.18 = RM12.85 = RM9.09

Profit Margin Profit Margin Profit Margin
= RM11.18/RM25 x = RM12.85/RM25 x = RM9.09/25 x 100%
100% 100% = 36.36
= 44.72 = 51.4 = 36%
= 45% = 51%

Breakeven Points: Breakeven Points: Breakeven Points:
FC FC FC

= SP – VC = SP – VC = SP – VC

7,810 7,810 7,810
= 25 – 13.82 = 25 – 12.15 = 25 – 15.91
= 698.57 @ 699 units = 607.78 @ 608 units = 859.19 @ 859 units

75

OPERATIONAL EXPENDITURE RM
RM
7,810
FIXED ASSETS/CAPITAL 61,490
EXPENDITURE 13,234
82,534
Equipment 2,830
Machinery 4,980
DIRECT MATERIAL

Purchase of Materials 61,490
OVERHEAD
7,254
Packaging Material 5,980
Salaries, EPF, SOCSO
(4 workers)
TOTAL

76

FINANCIAL
PLAN

77

PROJECT IMPLEMENTATION COST SCHEDULE

HOT HOT CORN
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost Sources of Finance

Requirements Cost Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing F. Assets
Land & Building 6,353 6,353
Rental Deposit 3,000 900 2,100
Water Deposit 1,800 200
Electrical Deposit 2,700 1,600 500
2,200

Sign Board 580 0 580

Utensil and equipment 2,830 0 0 2,830 0
450 0 450 0
Automatic Oil Pump 0 2,610 0
2,610 0 1,920 0 0
Electro Magnetic Popper 1,920

Industrial Hot Air Popper

Working Capital 3 months

Administrative 41,937 41,937 0
1,080 0 1,080
Marketing 38,336
224,172 185,836
Operations

Pre-Operations & Other

Expenditure 2,418 2,418
8,756 8,756
Contingencies 3% 0
4,530 46,076
TOTAL 300,606 250,000

78

SCHEDULE OF FINANCIAL RESOURCES

HOT HOT CORN ENTERPRISE
SCHEDULE OF FINANCIAL SOURCES AT YEAR 2021

Sources Amount (RM)

Own Contribution 46,076
- Cash
250,000
External Sources 4,530
- Loan from MARA 300,606
- Hire Purchase

TOTAL

79

TABLE OF BUDGETS

 Administrative Budget

ADMINISTRATIVE BUDGET

Particulars Fixed Monthly Total
Assets Exp. Others

Fixed Assets

Land & Building 6,353 6,353

Rental Deposit 3,000 3,000

Water Deposit 1,800 1,800

Electrical Deposit 2,700 2,700

0 - -
Working Capital

Utilities 1,709 1,709

Rental 1,000 1,000

Salaries 9,800 9,800

EPF 1,274 1,274

SOCSO 196 196

0 --

0 --
Pre-Operations & Other
Expenditure

Other Expenditure -

Deposit (rent, utilities, etc.) --
DBKL Business Registration & 390 390
Licences --
Insurance & Road Tax for Motor
Vehicle

Other Pre-Operations Expenditure 1,088 1,088

Total 13,853 13,979 1,478 29,310

80

 Marketing Budget

MARKETING BUDGET

Fixed Monthly
Particulars Assets Exp. Others Total

Fixed Assets

Sign Board 580 580

--

--

Working Capital - -

Instagram Advertisement 360 360

--

--

--

--

--

Pre-Operations & Other --
Expenditure

Other Expenditure -

Deposit (rent, utilities, etc.) --
DBKL Registration for Signboard 250 250
Licences --
Insurance & Road Tax for Motor
Vehicle

Other Pre-Operations Expenditure 690 690

Total 580 360 940 1,880

81

 Operational Budget

OPERATIONS BUDGET

Particulars Fixed Monthly
Assets Exp. Others Total

Fixed Assets 2,830 - 2,830
Utensil and equipment 450 - 450
Automatic Oil Pump - 2,610
Electro Magnetic Popper 2,610 - 1,920
Industrial Hot Air Popper 1,920 -
Working Capital - 61,490
Raw Materials 61,490 -
Carriage Inward & Duty - 5,980
Salaries, EPF & SOCSO 5,980 7,254
Packaging Material 7,254 -
- -
Pre-Operations & Other - -
Expenditure -
Other Expenditure -
Deposit (rent, utilities, etc.) 7,810 74,724 -
Business Registration & Licences -
Insurance & Road Tax for Motor -
Vehicle 82,534
Other Pre-Operations Expenditure
Total

82

FIXED ASSET DEPRECIATION TABLE

HOT HOT CORN
DEPRECIATION SCHEDULES

Fixed Asset Rental Deposit Fixed Asset Water Deposit
Cost (RM) 3,000 Cost (RM) 1,800
Straight Straight
Method Line Method Line
Economic Life Economic Life
(years) 7 Book Value (years) 5
Accumulated Accumulated
Annual Depreciation Annual Depreciation Book Value
Year Depreciation Year Depreciation

0 - - 3,000 0 - - 1,800

1 429 429 2,571 1 360 360 1,440

2 429 857 2,143 2 360 720 1,080

3 429 1,286 1,714 3 360 1,080 720

4 429 1,714 1,286 4 360 1,440 360

5 429 2,143 857 5 360 1,800 -

6 429 2,571 429 6 00-

7 429 3,000 07 00-

8 0 0 08 0 0 -

9 0 0 09 0 0 -

10 0 0 0 10 0 0 -

83

Fixed Asset Electrical Deposit
Cost (RM) 2,700
Method Straight Line
Economic Life
(years) 5 Book Value
Accumulated
Annual Depreciation
Year Depreciation

0- - 2,700

1 540 540 2,160

2 540 1,080 1,620

3 540 1,620 1,080

4 540 2,160 540

5 540 2,700 -

6 0 0-

7 0 0-

8 0 0-

9 0 0-

10 0 0 -

Fixed Asset Sign Board Book Value
Cost (RM) 580 580
Method Straight Line 522
Economic Life 464
(years) 10 406
Accumulated 348
Annual Depreciation 290
Year Depreciation 232
174
0 -- 116
58
1 58 58 -

2 58 116

3 58 174

4 58 232

5 58 290

6 58 348

7 58 406

8 58 464

9 58 522

10 58 580

84

Fixed Asset Utensil and equipment
Cost (RM) 2,830
Method Straight Line
Economic Life
(years) 3 Book Value

Annual Accumulated
Year Depreciation Depreciation

0 - - 2,830

1 943 943 1,887

2 943 1,887 943

3 943 2,830 -

4 0 0-

5 0 0-

6 0 0-

7 0 0-

8 0 0-

9 0 0-

10 0 0 -

Fixed Asset Automatic Oil Pump
Cost (RM) 450
Method Straight Line
Economic Life
(years) 7 Book Value

Annual Accumulated
Year Depreciation Depreciation

0- - 450

1 64 64 386

2 64 129 321

3 64 193 257

4 64 257 193

5 64 321 129

6 64 386 64

7 64 450 -

8 00-

9 00-

10 0 0 -

85

Fixed Asset Electro Magnetic Popper
Cost (RM)
Method 2,610
Economic Life Straight Line
(years)
5 Book Value
Annual Accumulated
Year Depreciation Depreciation

0- - 2,610

1 522 522 2,088

2 522 1,044 1,566

3 522 1,566 1,044

4 522 2,088 522

5 522 2,610 -

6 0 0-

7 0 0-

8 0 0-

9 0 0-

10 0 0 -

Fixed Asset Industrial Hot Air Popper
Cost (RM)
Method 1,920
Economic Life Straight Line
(years)
10 Book Value
Annual Accumulated
Year Depreciation Depreciation

0 - - 1,920

1 192 192 1,728

2 192 384 1,536

3 192 576 1,344

4 192 768 1,152

5 192 960 960

6 192 1,152 768

7 192 1,344 576

8 192 1,536 384

9 192 1,728 192

10 192 1,920 -

86

LOAN AMORTIZATION SCHEDULES

HOT HOT CORN
LOAN & HIRE-PURCHASE AMMORTISATION SCHEDULES

LOAN REPAYMENT SCHEDULE HIRE-PURCHASE REPAYMENT SCHEDULE

Amount 250,000 Amount 4,530

Interest Rate 4% Interest Rate 4%
Duration Duration 4
(years) 10 (years)
Fixed rate
Method

Year Principal Interest Total Payment Principal Balance Year Principal Interest Total Payment Principal Balance
0-
0-- 250,000 1 1,133 - 4,530
2 1,133
1 25,000 10,000 35,000 225,000 3 1,133 181 1,314 3,398
4 1,133
2 25,000 10,000 35,000 200,000 50 181 1,314 2,265
60
3 25,000 10,000 35,000 175,000 70 181 1,314 1,133
80
4 25,000 10,000 35,000 150,000 90 181 1,314 -
10 0
5 25,000 10,000 35,000 125,000 0- -

6 25,000 10,000 35,000 100,000 0- -

7 25,000 10,000 35,000 75,000 0- -

8 25,000 10,000 35,000 50,000 0- -

9 25,000 10,000 35,000 25,000 0- -

10 25,000 10,000 35,000 0 0- -

87

PRO-FORMA CASH FLOW STATEMENT

HOT HOT
PRO FORMA CASH FL

MONTH Pre-Operations 1 2 34 5

CASH INFLOW 46,076 40,625 0 0 0 0 64
Capital (Cash) 250,000 0 0 0 0 0 64
Loan 51,063 31,688 58,500 73,125 128
Cash Sales 296,076 40,625 16,250 44,800 43,313 42,413
Collection of Accounts Receivable 67,313 76,488 101,813 115,538
TOTAL CASH INFLOW

CASH OUTFLOW 1,709 1,709 1,709 1,709 1,709 1
Administrative Expenditure 1,000 1,000 1,000 1,000 1,000 1
Utilities 9,800 9,800 9,800 9,800 9,800 9
Rental 1,274 1,274 1,274 1,274 1,274 1
Salaries
EPF 0 196 196 196 196 196
SOCSO 0 0 0 0 0 0
0 0 0 0 0
Marketing Expenditure 0
Instagram Advertisement 0 360 360 360 360 360
0 0 00 0 0
Operations Expenditure 0 0 00 0 0
Cash Purchase 0 0 00 0 0
0 0 00 0 0
0 00 0 0
0 00 0 0

1,625 2,043 1,268 2,340 2,925 2

CORN
LOW STATEMENT

6 7 8 9 10 11 12 YEAR 1 YEAR 2 YEAR 3

0 0 0 0 0 0 0 46,076 0 0
0 0 0 0 0 0 0 250,000 0 0
4,188 87,500 104,563 118,375 128,250 110,250 153,438 1,021,563 1,225,875 1,716,225
4,350 69,550 73,513 94,325 110,088 122,325 121,050 801,975 1,282,013 1,650,845
8,538 157,050 178,075 212,700 238,338 232,575 274,488 2,119,613 2,507,888 3,367,070

1,709 1,709 1,709 1,709 1,709 1,709 1,709 20,508 20,918 21,337
1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 12,240 12,485
9,800 9,800 9,800 9,800 9,800 9,800 9,800 117,600 119,952 122,351
1,274 1,274 1,274 1,274 1,274 1,274 1,274 15,288 15,594 15,906

196 196 196 196 196 196 196 2,352 2,399 2,447
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0

360 360 360 360 360 360 360 4,320 4,406 4,495
0000000 0 0 0
0000000 0 0 0
0000000 0 0 0
0000000 0 0 0
0000000 0 0 0
0000000 0 0 0

2,568 3,500 4,183 4,735 5,130 4,410 6,138 40,863 49,035 68,649

88

Payment of Account Payable 0 1,625 2,043 1,268 2,340 2
Carriage Inward & Duty 0 0 0 0 0
Salaries, EPF & SOCSO 5,980 5
Packaging Material 7,254 5,980 5,980 5,980 5,980 7
0 7,254 7,254 7,254 7,254
0 0
0 0 0 0 0 0
0 0 0 0 0 0
Other Expenditure 0 0 0 0
Pre-Operations 0
Deposit (rent, utilities, etc.) 640 00 0 0
Business Registration & Licences 00 0 0
Insurance & Road Tax for Motor 0
Vehicle 1,778 00 0 0
Other Pre-Operations Expenditure 00 0 0
Fixed Assets
Purchase of Fixed Assets - Land & 6,353 00 0 0
Building 11,360 00 0 0
Purchase of Fixed Assets - Others 00 0 0
Hire-Purchase Down Payment 0
Hire-Purchase Repayment:
Principal 94 94 94 94 94
Interest 15 15 15 15 15
Loan Repayment:
Principal 20,131 2,083 2,083 2,083 2,083 2,083 2
Interest 275,945 833 833 833 833 833
Tax Payable 0 0 0 0 0 5
TOTAL CASH OUTFLOW 275,945 5
32,224 34,267 33,909 34,207 35,864
CASH SURPLUS (DEFICIT)
8,401 33,046 42,578 67,606 79,673
BEGINNING CASH BALANCE
275,945 284,345 317,391 359,970 427,575
ENDING CASH BALANCE 284,345 317,391 359,970 427,575 507,249

2,925 2,568 3,500 4,183 4,735 5,130 4,410 34,725 40,863 49,035
0 0 0 0 0 0 0 0 0 0

5,980 5,980 5,980 5,980 5,980 5,980 5,980 71,760 73,195 74,659
7,254 7,254 7,254 7,254 7,254 7,254 7,254 87,048 88,789 90,565

0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0
0000000
0000000 0 0 0
640
0000000 0 0
0000000 0
1,778

0 0 0 0 0 0 0 6,353 0 0
0 0 0 0 0 0 0 11,360 0 0
0000000 0 0 0

94 94 94 94 94 94 94 1,133 1,133 1,133
15 15 15 15 15 15 15 181 181 181

2,083 2,083 2,083 2,083 2,083 2,083 2,083 25,000 25,000 25,000
833 833 833 833 833 833 833 10,000 10,000 10,000
0 0 0 0 0 0 0
0 0 0
36,092 36,667 38,282 39,517 40,464 40,139 41,147
462,908 463,705 498,241
92,446 120,383 139,793 173,183 197,873 192,436 233,341
1,656,705 2,044,183 2,868,829
507,249 599,695 720,078 859,871 1,033,055 1,230,928 1,423,364
599,695 720,078 859,871 1,033,055 1,230,928 1,423,364 1,656,705 0 1,656,705 3,700,888
1,656,705 3,700,888 6,569,717

89

PRO-FORMA INCOME STATEMENT

HOT HOT CORN
PRO-FORMA PRODUCTION COST STATEMENT

Year 1 Year 2 Year 3

Raw Materials 0 2,322 2,787
Opening Stock 81,725 98,070 137,298
Current Year Purchases
Ending Stock 2,322 2,787 3,902
Raw Materials Used 79,403 97,605 136,183
Carriage Inward
0 0 0
Salaries, EPF & SOCSO 79,403 97,605 136,183
Factory Overhead 71,760 73,195
74,659
Depreciation of Fixed 1,722 1,722
assets (Operations) 87,048 88,789 1,722
Packaging Material 90,565

Total Factory Overhead 88,770 90,511 92,286
Production Cost 239,933 261,311 303,128

90

HOT HOT CORN
PRO-FORMA INCOME STATEMENT

Sales Year 1 Year 2 Year 3
Less: Cost of Sales 2,043,125 2,451,750 3,432,450
Opening Stock of
Finished Goods 0 3,068 3,683
Production Cost 239,933 261,311 303,128
Less: Ending Stock of
Finished Goods 3,068 3,683 5,156
0 0 0
Gross Profit
236,865 260,696 301,655
1,806,260 2,191,054 3,130,795

Less: Expenditure 167,748 171,103 174,525
Administrative 4,320 4,406 4,495
Expenditure 0 0 0
Marketing Expenditure 640
0 0
Other Expenditure 0 0
Business Registration & 181 0
Licences 1,778 10,000
Insurance & Road Tax 1,387 181
for Motor Vehicle 181 10,000
Other Pre-Operations 10,000
Expenditure 1,387
Interest on Hire- 1,387
Purchase 190,587
Interest on Loan 2,940,207
Depreciation of Fixed
Assets 0
2,940,207
Total Expenditure 186,054 187,077 6,564,391
1,620,207 2,003,977
Net Profit Before Tax
0 0
Tax 1,620,207 2,003,977
Net Profit After Tax
Accumulated Net 1,620,207 3,624,184
Profit

91

PRO-FORMA BALANCE SHEET

HOT HOT CORN
PRO-FORMA BALANCE SHEET

Year 1 Year 2 Year 3

ASSETS 6,353
1,714
Non-Current Assets 6,353 6,353
(Book Value) 2,571 2,143 720
Land & Building 1,440 1,080 1,080
Rental Deposit 2,160 1,620
Water Deposit 406
Electrical Deposit

Sign Board 522 464

Utensil and equipment 1,887 943 0
Automatic Oil Pump 386 321 257
Electro Magnetic Popper 1,566 1,044
Industrial Hot Air Popper 2,088 1,536 1,344
Other Assets 1,728
Deposit 0 0
0
Current Assets 16,027 12,918
Stock of Raw Materials 19,135
Stock of Finished Goods 2,787 3,902
Accounts Receivable 2,322 3,683 5,156
Cash Balance 3,068 163,450 228,830
219,588 3,700,888 6,569,717
TOTAL ASSETS 1,656,705 3,870,808 6,807,605
Owners' Equity 1,881,682
Capital 3,886,834 6,820,523
Accumulated Profit 1,900,817
Long-Term Liabilities 46,076 46,076
Loan Balance 46,076 3,624,184 6,564,391
Hire-Purchase Balance 1,620,207 3,670,260 6,610,467
Current Liabilities 1,666,283
Accounts Payable 200,000 175,000
TOTAL EQUITY & 225,000 2,265 1,133
LIABILITIES 3,398
202,265 176,132
228,397 14,310 33,924
6,138
3,886,834 6,820,523
1,900,817
92

FINANCIAL RATIO ANALYSIS

HOT HOT CORN

FINANCIAL RATIO ANALYSIS

Year 1 Year 2 Year 3

LIQUIDITY 307 270 201
306 270 200
Current Ratio
Quick Ratio (Acid Test) 39

EFFICIENCY 44 44 91.21%
Inventory Turnover 85.66%
43.11%
PROFITABILITY 88.41% 89.37% 44.48%
79.30% 81.74%
Gross Profit Margin 85.24% 51.56% 3.18%
Net Profit Margin 97.23% 54.60% 3.08%
Return on Assets
Return on Equity 293

SOLVENCY 14.08% 5.90%
Debt to Equity 12.34% 5.57%
Debt to Assets
Time Interest Earned 161 199

93

FINANCIAL GRAPH

Current Ratios

Ratio 11.5
11

10.5
10
9.5
9
8.5

1 2 3
Year

The diagram shows that the current ratio rose sharply from year 2 to year 3. Unfortunately,
there is only a decrease in year 2. However, it shows our company has meet the short-term
obligations.

Quick Ratios

Ratio 350
300
250 2 3
200 Year
150
100

50
0
1

The diagram above shows that the quick ratio decreased gradually over the years. A decline in
this ratio can be attributable to an increase in short-term debt, a decrease in current assets,
or a combination of both. Regardless of the reasons, a decline in this ratio means a reduced
ability of our company to generate cash. Merely paying off some current liabilities can improve
our current ratio.

94

Inventory Turnover

Times 45
44
43 2 3
42 Year
41
40
39
38
37
36

1

The diagram above shows that the inventory turnover decreased, this shows
that our company not able to convert inventory to revenue. Thus, company’s
performance decreased every year.

Gross Profit Margin

Percent 91.50%
91.00%
90.50%
90.00%
89.50%
89.00%
88.50%
88.00%
87.50%
87.00%

1 2 3
Year

The diagram above shows that the gross profit margin increased, it shows
that Hot Hot Corn has gained a lot of profit that lead our position in the market
strengthen.

95

Net Profit Margin

Percent 88.00%
86.00%
84.00%
82.00%
80.00%
78.00%
76.00%

1 2 3
Year

The diagram above shows that the net profit margin increased. It shows that
the company is able to generate net income from the business activities.

Return on Assets

Percent 90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%

0.00%

1 2 3
Year

The diagram above shows that return on asset of the company is decreased. It shows that
the company is not able for rising the company’s profit. It indicates that our company trended
toward earning lower profits.

96

Percent 120.00% Return on Equity
100.00%
12
80.00% Year
60.00%
40.00%
20.00%

0.00%

3

The diagram above shows that return on equity for the company decreased throughout the
year. It shows that our company cannot impress the shareholder. Our company is becoming
less efficient at creating profits and increasing shareholder value.

Percent 16% Debts to Equity Series1
14%
12% 2
10% Year

8%
6%
4%
2%
0%

1 3

The diagram above shows that debt of equity for the company is decreased. It proves that
the company is in great condition. Thus, our company is able to earn profits and to pay back
its debt.

97

Debts to Assets

Percent 14%
12%
10%

8%
6%
4%
2%
0%

1 2 3
Year

The diagram above shows that the debts to assets also decreased. This proves that the
company is in excellent condition. It shows that our company is financially stable.

Times Interest Earned

Times 350
300
250 2 3
200 Year
150
100

50
0
1

The diagram above shows that the time interest earned by the company has increased
moderately. This proves that the company can pay interest expenses for each year.

98