Financial Analysis of Genetically Modified Vegetable Seeds Project for The Overseas Seed Agency (TOSA)
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Financial Analysis of Genetically Modified Vegetable Seeds Project for The Overseas Seed Agency (TOSA) Proposal: to the CEO The forecast profit and loss accounts having been created by an inexperienced accountant have been amended as shown in the accounts below. Year 0 (m) 1 (m) 2 (m) 3 (m) 4 (m) REVENUE: Sales 0 5 6 6 7 Vehicle Sale 0.15 Image Benefit 0 0.15 0.15 0.15 0.15 Initial Float 0.75 Total Revenue 0.75 5.15 6.15 6.15 7.3 COSTS: Licence 0 0.8 0.8 0.8 0.8 Raw Materials 0 2 2.4 2.4 2.8 Direct Wages 0 0.55 0.55 0.55 0.55 Rent 0 0.1 0.1 0.1 0.1 Transport Costs 0 0.5 0.5 0.5 0.5 Overheads 0 0.45 0.45 0.45 0.45 Opportunity Cost 0 1 1 1 1 Vehicle Purchase 0.75 Float Return 0.75 Total Cost 0.75 5.4 5.8 5.8 6.95 Profit 0 (0.25) 0.35 0.35 0.35 These accounts are subject to the following amendments from the original accounts. Withdrawals from original Forecast Profit and Loss Accounts 1, The 15,000 pounds market research costs have been removed from the initial forecast as market research costs are not project costs and will be spent whether or not the project is given the go ahead. The market research costs should be apportioned to TOSA's research and development budget. 2, Vehicle depreciation has been removed from the accounts as the amount...


