استكمال بقية الشرح
Raw materials
Tomato 200 100
Salt 20 100
Cans 20 100
Utilities 20 100
Repair & maintenance 30 50
Labour 50 20
Factory overhead 80 0
Admin. overhead 60 0
Marketing 40 50
Table 3: Production costs
Figure 11: Tomato window - standard production costs panel
II. Tomato canning 15
Below, the procedure is described for defining the RAW MATERIALS - TOMATO costs.
Only for the three raw materials is the initial stock defined (initial stock of tomato represents
agricultural financing); for these and the other production cost items, the standard
costs are defined on the basis of AT NOMINAL CAPACITY in a manner similar to that
for TOMATO.
1. Choose the Table Icon for the RAW MATERIALS - TOMATO node.
2. Select thousand rupees as the currency using the CURRENCY dropdown
list box (default selection).
3. Select the Local radio button (default selection).
4. Select the Standard production costs radio button (default selection).
5. Select the At nominal capacity radio button (default selection); the
nominal capacity of 2,600 tons appears in the display field.
6. Select the QUANTITY field and enter the value 200.
7. Select the PRICE field and enter the value 1.
8. Select the VARIABLE PART field and enter the value 100 (default value).
9. Enter all other production cost items according to table 3 (standard production
costs).
10. Use the ANNUAL ADJUSTMENTS list box to enter the initial stock of raw
materials shown in table 1, as described below.
8. Initial working capital
The ANNUAL ADJUSTMENTS list box of the PRODUCTION COSTS window of each
material (inventory) cost item contains also entry lines for the construction phase (see
Figure 12). Entries into these lines are treated as initial investment (initial stock of
materials).
1. The initial stock of tomato is entered in the ANNUAL ADJUSTMENTS panel.
Select the Annual adjustments radio button. The ANNUAL
ADJUSTMENTS panel is displayed in the window.
2. Select the period 1/2 (second year of construction) in the list box. Use
the iconic buttons to enter Quantity, 33.3, and Price, 1. (see table 1)
3. Accept the data with the OK pushbutton.
4. Enter the other items of initial stock of raw materials (salt and cans)
shown in table 1.
5. Choose the Compress Icon of the PRODUCTION COSTS node.
Figure 12: Tomato window - annual adjustments panel
9. Sales programme
The sales programme is defined in the windows of the respective subnodes of the
SALES PROGRAMME node.
· Choose the Extend Icon of the SALES PROGRAMME node.
The structure of the sales programme is displayed with a node for each product defined
before (see chapter II.3).
The proposed sales programme is shown in table 4. All production is exported and is
paid in US$.
PROJECT YEAR
(Two years construction)
3 4 5 6 7
Percentage capacity 50 75 100 100 100
Sales level (tons) 1,300 1,950 2,600 2,600 2,600
Table 4: Sales programme
II. Tomato canning 17
1. Choose the Table Icon for the CANNED TOMATO node.
2. Select thousand US$ using the CURRENCY drop-down list box.
3. Select the Foreign radio button.
4. Use the iconic buttons and list box to enter the Quantity and Price for
each production period (the price is expressed in thousand US$).
PERIOD QUANTITY
(thousands)
PRICE
(thousand US$)
1/3 1,300 0.1
1/4 1,950 0.1
1/5 2,600 0.1
1/6 2,600 0.1
1/7 2,600 0.1
Table 5: Data for quantity and price
5. Accept the data with the OK pushbutton.
6. Choose the Compress Icon of the SALES PROGRAMME window.
Figure 13: Sales programme window with sales programme panel
10. Working capital
Working capital requirements during the production phase are defined in terms of
MINIMUM DAYS COVERAGE (Mdc) as shown in table 6. The COEFFICIENT OF TURNOVER
(Coto) is the number of rotations per annum (360/DAYS COVERAGE).
ITEM DAYS COVERAGE (MDC)
Inventory of material items
Tomato (production credit to farmers) 120
Salt 30
Cans 90
Utilities 30
Work in progress 2
Finished product 30
Accounts receivable 30
Cash-in-hand (local and foreign) 30
Accounts payable 0
Table 6: Working capital requirements
Figure 14: Working capital window
II. Tomato canning 19
1. Choose the Table Icon for the WORKING CAPITAL node. The WORKING
CAPITAL window is displayed.
2. Select the Inventory radio button. The INVENTORY panel is displayed.
3. Use the iconic buttons and list box to enter the above values for inventory
items (raw materials, finished products, work in progress). The corresponding
annual turnover values (Coto) are displayed automatically.
4. Select the Accounts receivable radio button.
5. Use the iconic buttons to enter 30 for DAYS COVERAGE of ACCOUNTS
RECEIVABLE.
6. Select the Cash-in-hand radio button.
7. Use the iconic buttons to enter 30 for both DAYS COVERAGE of CASH-INHAND
- LOCAL and CASH-IN-HAND - FOREIGN.
8. Select the Accounts payable radio button.
9. Use the iconic buttons to enter 0 for the DAYS COVERAGE of ACCOUNTS
PAYABLE.
10. Accept the selections with the OK pushbutton.
The project should now be saved in the original state without the definition of sources
of finance, profit distribution and income tax definitions.
1. Choose Save Project as in the FILE menu. The SAVE PROJECT AS modal
window is displayed. The FILENAMES entry field is automatically
selected.
2. Enter the name of the file, TOMCAN, in the FILENAMES entry field
(please refer to the note given in chapter II. Tomato canning).
3. Save the file by choosing the OK pushbutton. Control returns to the
input browser.
Figure 15: Save project as modal window
D. INITIAL CALCULATIONS
Initial calculations are performed to determine the financial requirements of the project.
If no sources of finance are defined, the program increases equity automatically during
the construction phase to cover cash deficits. The cash flow for financial planning
reveals the magnitude, type (foreign, local) and timing of the requirements from which
the financing plan can be developed.
Reports to be calculated can be selected using the Select results feature of the MODULE
menu. However, a number of results are calculated by default and these are sufficient
to provide the required output for this exercise.
1. Choose Calculations in the MODULE menu. The CALCULATIONS modal
window is displayed showing the list of reports to be produced. A Check
Icon appears in the DONE column when the calculation of the listed item
is complete.
2. Choose the Start pushbutton. When calculations are complete the
window CALCULATION REPORT is displayed, indicating that the project is
underfinanced. After accepting with the OK pushbutton, control automatically
returns to the show results browser, from which the results to
be displayed or printed can be selected. At this point the result of
interest is the CASH FLOW FOR FINANCIAL PLANNING in the BUSINESS
RESULTS structure.
Figure 16: Calculation modal window
II. Tomato canning 21
3. Choose the Extend Icon for the BUSINESS RESULTS node. The BUSINESS
RESULTS structure is extended to reveal four nodes, the uppermost of
which is the CASH FLOW FOR FINANCIAL PLANNING node, which is further
extended by choosing its Extend Icon to reveal the TOTAL node (one of
the default results).
4. Choose the Table Icon for the TOTAL node. The BUSINESS RESULTS/
CASH FLOW FOR FINANCIAL PLANNING/TOTAL result is displayed.
Figure 17: Business results - cash flow for financial planning - total result
5. Use the vertical scroll bar to move to the bottom of the table so that the
SURPLUS/DEFICIT line and FOREIGN and LOCAL surplus/deficit lines are
revealed for the first two years of the project. The data for the first two
years is as follows (all expressed in the accounting currency, thousand
rupees):
ITEM YEAR
1 2
Surplus/deficit (total) (1,087.5) (709.1)
Foreign surplus/deficit (612.5) (250.0)
Local surplus/deficit (475.0) (459.1)
Table 7: Data for total and for foreign and local surplus/deficit
6. Accept the result with the OK pushbutton. Control returns to the Show
results browser.
E. FINANCE PLAN, INCOME TAX AND DATA ENTRY
The financial conditions for the project are as follows:
Debt/equity
By agreement of the parties, the proportions of debt and equity are to be 60/40, respectively,
of the initial investment in each of the two years of construction.
Loan
The development bank provides 60% of the initial investment with a loan at an interest
rate of 12% to be repaid in three equal installments on 31/12 of years 3-5. Each year's
requirements are covered by two disbursements on 1/1 and 1/7 of each year. Interestمحمد عطيه