Financial Feasibility Analysis

iClean Company
Income Statements for 3 years ended December 2017, 2018 & 2019
2017 2018 2019
RM RM RM
Sales 9,495,000 11,868,750 15,429,375

(-) Cost of goods sold (3,500,000) (4,375,000) (5,687,500)

Gross Profit 5,995,000 7,493,750 9,741,875
Other operating incomes 300,000 450,000 600,000
6,295,000 7,943,750 10,341,875
(-) Operating expense
Selling and distribution expenses (200,000) (240,000) (310,200)
Administrative expenses (150,000) (180,000) (200,000)
Miscellaneous expenses (50,000) (75,000) (90,000)
Salaries &Wages (200,000) (450,000) (660,000)

R&D (800,000) (800,000) (800,000)

Profit from operations 4,595,000 5,748,750 7,681,675
(-) Finance cost (400,000) (400,000) (400,000)
Net profit before tax 4,195,000 5,348,750 7,281,675
(-) Taxation 24% (934,800) (1,283,700) (1,747,602)
Profit for the year 3,188,200 4,065,050 5,534073

Table 1 Income Statement for the Ice Lock

From the Table 1, it shown that our company plan l to sell 5,000 of volumes in the year 1
with the selling price RM 1899 and the cost for iClean is RM 700. Then, in the second
year, we approximate our sales will increase to 25% which is 6,250 units. In 2018, the
sales will increase 30% from the sales of year 2. Moreover, the target sales will increase
progressively in the following years.
 2016 2017 2018
Selling price per unit RM1899 RM1899 RM1899
() Unit to be sold 5,000 6,250 8,125
Total sales RM9,495,000 RM11,868,750 RM15,429,375

Table 2. Total sales for iClean for the year 2017-2019

Profit for the year

6000000

5000000

4000000

3000000
Profit for the year

2000000

1000000

0
Year 2017 Year 2018 Year 2019

Graph 1: Profit for the year 2017-2019

From the Graph 1, it illustrates the profit for the 3 years. The profit for the year will
steadily increase from 2019 to 2018. We approximate that iClean will have greater demand and
the company profit will constantly making growth in the future.