You are a finance consultant who specializes in planning, analytics, and management accounting for startups and growing businesses. A new company, Sweet & Sour Pvt. Ltd., approaches you to prepare a three-statement, five-year financial projection for their startup.

Using the following facts, please draw up financials (P&L, Balance sheet, Cash flow statement) in Excel, showing detailed working sheets to support your underlying calculations and documenting your assumptions in detail.

Sweet & Sour Pvt. Ltd. is a startup that has been set up to manufacture jams and pickles.

It has been three months since the company was set up (incorporation date 1 April 2019) with 2 founders holding shares as below —

The par value of shares 10 each

• Founder A — Gourmet chef — 100000 shares
• Founder B — Marketing expert & previously CEO of a hotel chain — 50000 shares

The company has projected domestic sales as below (in number of jars)—

	Estimated selling price at launch	2019	2020	2021	2022	2023
Jaml	200 per jar	10000	15000	20000	80000	200000
Jam2	*200 per jar	10000	15000	20000	25000	60000
Jam3	500 per jar	5000	15000	20000	25000	60000
Picklel	200 per jar	10000	15000	20000	80000	200000
Pickle2	500 per jar	10000	15000	20000	25000	60000

	Estimated selling price at launch (US$)	2019	2020	2021	2022	2023
Jaml	$5 per jar	1000	1500	2000	8000	20000
Pickle3	900 per jar	1000	1000	2000	4000	10000

In addition, they project export sales as below (in number of jars)—

Jam2	$ 5 per jar	1000	1500	2000	2500	6000
Jam3	$ 10 per jar	500	1500	2000	2500	6000
Picklel	$ 5 per jar			2000	8000	20000
Pickle2	$ 10 per jar			2000	5000	10000
Pickle3	$ 15 per jar			2000	4000	10000

The cost of production of each jar is as below —

• Jams — Total RM cost 25% of selling price, labour & direct costs 10%
• Pickles - Total RM cost 20% of selling price, labour & direct costs 10%

Packaging & delivery costs —

• Domestic sales — 5% of selling price
• Export sales — 7% of selling price

Common costs -

• Factory costs 20% of total company revenue
• General overheads 15% of total revenue

Value of total fixed assets —

• Plant & machinery -R 500000 Office equipment — 80000
• Furniture & fixtures — 40000

The factory is leased at 60000 rent per month.

Additional Notes:

1. The business would like to track the profitability of Jams as a segment separately from the pickles division.
2. For 2019-20 & 2020-21, provide monthly P&L and cash flow, and annual columns starting year 3
3. Use the indicative format in the Excel workbook provided
4. Break up the cost components shown on the P&L into logical sub-categories such as Factory costs, Power & Water, Rent, Professional Fees, Management Costs, IT & Communications, Support & Admin, Other overheads, Finance costs, Depreciation, etc (Stated categories are indicative only; use your understanding of business dynamics and the industry to split costs into these categories).

State logical assumptions for the basis assumed for these costs.