King Edward College has been
doing great since its inception in 2015. The college has adopted successful
strategies, which allowed it to become one of the best colleges in Melbourne,
and it has received good recognition from students as well. The financial
performance of the college has been above expectations as it has been able to
earn handsome revenue in the last four years. Moreover, the feedback from the
staff is also very positive about the college and its policies. The staff is
very much satisfied and happy working with King Edward College. Then there
comes to feedback from students, which has also been very positive as they have
loved the teaching methods as well as facilities provided by the college.
However, the competition is tough, and it is important to deal with the risk
that King Edward College finds new opportunities and expands to other cities to
get a more competitive advantage.
FORECASTED INCOME
STATEMENT
|
|
|
|
|
|
|
year 1
|
year 2
|
year 3
|
year 4
|
Total
net Revenue (Sales)
|
$5,000,000.00
|
$5,400,000.00
|
$5,832,000.00
|
$6,298,560.00
|
Costs
of sales
|
$65,000.00
|
$70,200.00
|
$75,816.00
|
$81,881.28
|
Gross
profit
|
$4,935,000.00
|
$5,329,800.00
|
$5,756,184.00
|
$6,216,678.72
|
Gross
profit margin
|
99%
|
99%
|
99%
|
99%
|
|
|
|
|
|
Variable expenses
|
|
|
|
|
Salaries/
wages
|
$2,550.00
|
$2,677.500
|
$2,811.375
|
$2,951.944
|
Payroll
expenses
|
$2,223.00
|
$2,334.150
|
$2,450.858
|
$2,573.400
|
Office
supplies
|
$77,745.00
|
$81,632.250
|
$85,713.863
|
$89,999.556
|
Motor
Vehicle
|
$33,999.00
|
$35,698.950
|
$37,483.898
|
$39,358.092
|
Miscellaneous
|
|
$0.000
|
$0.000
|
$0.000
|
Legal/
accounting
|
$1,955.00
|
$2,052.750
|
$2,155.388
|
$2,263.157
|
Advertising
|
|
$0.000
|
$0.000
|
$0.000
|
Utilities
|
$98,949.00
|
$103,896.450
|
$109,091.273
|
$114,545.836
|
|
|
|
|
|
Total
variable Expenses
|
$217,421.00
|
$228,292.050
|
$239,706.653
|
$251,691.99
|
|
|
|
|
|
Fixed expenses
|
|
|
|
|
Rent
|
$66,645.00
|
$69,310.80
|
$72,083.23
|
$74,966.56
|
Depreciation
|
$78,945.00
|
$82,102.80
|
$85,386.91
|
$88,802.39
|
Miscellaneous
|
$89,456.00
|
$93,034.24
|
$96,755.61
|
$100,625.83
|
Loan
repayments
|
$778,823.00
|
$809,975.92
|
$842,374.96
|
$876,069.96
|
License/
permits
|
|
$0.00
|
$0.00
|
$0.00
|
Insurance
|
$552,244.00
|
$574,333.76
|
$597,307.11
|
$621,199.39
|
Total
fixed expenses
|
|
$0.00
|
$0.00
|
$0.00
|
Utilities
|
$1,566,113.00
|
$1,628,757.52
|
$1,693,907.82
|
$1,761,664.13
|
|
|
$0.00
|
$0.00
|
$0.00
|
Total
Expenses
|
$1,783,534.00
|
$1,854,875.36
|
$1,929,070.37
|
$2,006,233.19
|
Net
profit (loss) before taxes
|
$3,151,466.00
|
$3,277,524.64
|
$3,408,625.63
|
$3,544,970.65
|
Taxes
|
$14,000.00
|
$14,560.00
|
$15,142.40
|
$15,748.10
|
Net
profit (loss) after taxes
|
$3,137,466.00
|
$3,262,964.64
|
$3,393,483.23
|
$3,529,222.55
|
Forecasted Balance Sheet |
BALANCE SHEET | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Current assets | 1142703 | 1234119.24 | 1332848.779 | 1439476.682 | 1554634.816 |
Cash | 445499 | 481138.92 | 519630.0336 | 561200.4363 | 606096.4712 |
Petty cash | 521223 | 562920.84 | 607954.5072 | 656590.8678 | 709118.1372 |
Inventory | 89987 | 97185.96 | 104960.8368 | 113357.7037 | 122426.32 |
Pre-paid expenses | 85994 | 92873.52 | 100303.4016 | 108327.6737 | 116993.8876 |
Fixed assets | 3026837 | 3238715.59 | 3465425.681 | 3708005.479 | 3967565.863 |
Vehicles | 672477 | 719550.39 | 769918.9173 | 823813.2415 | 881480.1684 |
Renovations | 998832 | 1068750.24 | 1143562.757 | 1223612.15 | 1309265 |
Property & land | 44442 | 47552.94 | 50881.6458 | 54443.36101 | 58254.39628 |
Leasehold | 832555 | 890833.85 | 953192.2195 | 1019915.675 | 1091309.772 |
Furniture & fittings | 87454 | 93575.78 | 100126.0846 | 107134.9105 | 114634.3543 |
Equipment/tools | 88999 | 95228.93 | 101894.9551 | 109027.602 | 116659.5341 |
Computer equipment | 974555 | 1042773.85 | 1115768.02 | 1193871.781 | 1277442.806 |
| | | | | |
Total assets | 4169540 | 4472834.83 | 4798274.461 | 5147482.161 | 5522200.679 |
Current/short-term
liabilities | 984639 | 1083102.9 | 1191413.19 | 1310554.509 | 1441609.96 |
Accounts payable | 52777 | 58054.7 | 63860.17 | 70246.187 | 77270.8057 |
Accrued wages | 99444 | 109388.4 | 120327.24 | 132359.964 | 145595.9604 |
payable (Credit Card) | 77789 | 85567.9 | 94124.69 | 103537.159 | 113890.8749 |
Interest payable | 55852 | 61437.2 | 67580.92 | 74339.012 | 81772.9132 |
Income tax | 698777 | 768654.7 | 845520.17 | 930072.187 | 1023079.406 |
| | | | | |
Long-term
liabilities | 66585466 | 73244012.6 | 80568413.86 | 88625255.25 | 97487780.77 |
Loans | 66585466 | 73244012.6 | 80568413.86 | 88625255.25 | 97487780.77 |
other loan | 531256 | 563814.43 | 598141.921 | 634358.3847 | 672544.6536 |
Total liabilities | 68101361 | 74890929.93 | 82357968.97 | 90570168.14 | 99601935.38 |
7. Sending an Email to the Management
Team
Dear
Management Team,
It is to inform you that King
Edward College has collected data from the market; feedback has also been
gathered from staff and students. Moreover, the overall financial performance
of the college has also been analyzed, and considerable financial projections
have been made. I want to discuss this report in detail with all management
team members so that we all can derive a future course of action for college
campuses to be opened in Brisbane and Adelaide. The purpose of this meeting is
to discuss any issues so that solutions can be found as a proactive approach.
Your feedback and suggestions are needed in this regard. So, it is requested
from all of you to decide for an agreed date, time, and location for this meeting.
I have a suggestion to conduct this meeting next Monday evening at the Meeting
Hall. Do share your thoughts on this. Thanks
8. Meeting with the Management Team
It is important to mention here
that meeting with the management team was fruitful. The meeting continued for
two hours without any considerable break. The management team discussed every
aspect of the report prepared by me. There were so many suggestions given by
team members, which helped us to decide on various terms. It was finalized that
the college will continue with its expansion in two cities. When it was time to
discuss the data storage system for the college after its expansion, the
management team agreed to use Dropbox as a cloud data storage system. The team
members agreed that cloud storage would provide convenience, safety as well as
the flexibility to store and retrieve data in a quick manner.
9. Opening a Free Dropbox Account
It was mentioned earlier that the
management team, after discussing every possible issue, has decided to use
Dropbox as a data storage system. One of the team members talked precisely
about the benefits of using Dropbox. So, it was time to open an official
Dropbox account for the college. I opened a new account with an official email
address of the college. The new account was shared with all the team members so
that they can join this Dropbox account, and perform tasks such as storing
data, sending data, as well as retrieving data, etc. All team members were
given access to this Dropbox account.
10. Developing a Communication Plan
It is vital to inform that a
comprehensive Communication Plan was developed so that all the stakeholders can
be on the same page. For this purpose, it was decided that I will use a proper
communication pattern, which would also be used by other staff members as well.
It was agreed that any progress report would be emailed to the top management,
and relevant members will be in the loop. It was also decided that a progress
report will be shared on Dropbox, where every member can access the report. Moreover,
it was agreed that all the students would be emailed to inform about the
expansion of the college to other cities so that they can also become a source
of marketing the college with their friends and family members.
Type of
Communication
|
Owner
|
Occurrence
|
Program
|
Meeting
|
Manager
|
Weekly
|
Performance review
Planning
|
Report
|
Project Manager
|
Weekly
|
Progress review
Risk Assessment
|
Control meeting
|
Project Manager
|
Monthly
|
Review Performance
|
Assurance report
|
Supervisor
|
Monthly
|
Quality Assessment
|
11. Developing an Information
Management Policy and Procedures
A comprehensive information
management policy and the procedures were developed by the college so that
things can be on the right track. For this purpose, it was decided that the
college will have certain rules and regulations to ensure the safety and
security of sensitive data. It was agreed that sensitive data would only be
available to relevant persons, and this data will be protected by a username
and password. It is important to mention here that a username and password will
only be shared with the concerned individuals. Moreover, users will be
prohibited from sharing user names, password and any sensitive information with
others. If they found guilty in this regard, then strict action will be taken
against them.
12. Screenshot of Dropbox Folders
13. Sending an Email to Management
Team
Dear
Management Team,
It is to inform you that I have
attached three important documents with this email. The first important document
is the Communication Plan. You must read this communication plan so that you
know about sharing and transferring information & data. The second most
important attachment is the Information Management Policy and Procedures
document. This document has shared the policy of safety and security of data.
It is important for you to look at the Screenshot of the Dropbox, where all
files are composed in proper folders, and each folder is given a number for the
identification. It is recommended that you carefully review these three
documents, and if you are not able to understand anything, then do reply back
so that your concerns are satisfied accordingly.
14. Reviewing the Communication Plan
It is important for all staff and
team members that communication plan is available with a link on the Dropbox,
so if anyone wants to review this document, they can ask for the link, and save
it on their computer. All the stakeholders should know that if the college
administration makes any changes in the communication plan, then those changes
will be updated in the document, and all relevant members will be notified
through emails about the new changes. So, it is recommended to check all emails
on a regular basis. The document with new changes will be saved with the name
“Updated Communication Plan.”
15. Reviewing the Information
Management Policy and Procedures
It is essential for all the
stakeholders to realize that information management policy and procedures
cannot be remained constant, as new changes in the business strategy ask to
change the information management policy so that the security and safety of the
college are ensured. This policy document will also be available on the
Dropbox, and the link will be shared with all the relevant employees. The name
of the updated document would be “Update Information Management Policy.”
16. Sending an Email to the
Management Team
Dear
Team Members,
It is to inform you all that as
per the instructions of the top management of the college, the communication
plan as well as information management policy has been changed, and few
additional points have been added. These changes made in this document are
crucial for every employee to read and understand. The link is being shared
with this email so that you can access the updated versions of both documents.
You should read updated changes, and in case of any confusion, send an email to
me so that I can explain and satisfy your concerns. You are welcome to share
your feedback and suggestions to improve overall work progress so that everyone
knows that the project is going in the right direction with the correct policy
matrix.