Twelve Stones Properties Limited is a social enterprise private Company incorporated to re-configure the dynamics between...
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Twelve Stones Properties Limited is a social enterprise private Company incorporated to re-configure the dynamics between the private sector, development sector and rural communities through innovation of real estate activities. In order to realize its vision, the Company intends to construct two residential 60- bedroom hotel apartments in 2 communities of Ghana. The company therefore seeks to raise GHS1,100,000 comprising CAPEX Financing and Working Capital financing to fully complete and launch its hotel business in Ghana. After technical and financial due diligence, the following revenue items have been extracted: Human Resources 1. CEO 2 Manager 3. Bar Manager 4 Accountant 4 Storekeeper/Cooks 5. Drivers 6. Ber Attendant 7. Watchman Day & Watchman Nite 9. Cleaner Total No.of Emplo yees Loan Des Noceeds from Loun Existing an interest Principal Repayment methly ii. in. iv. 1 V. 1 vi. 2 1 2 2 Calculate the following: i. 4 2 2 3 30 Full-time monthly Salary Revenue Room 450.00 400.00 4,000.00 2,500.00 1,000.00 2.000.00 600.00 500.00 Project 2 500.00 Villa 400.00 Executive Master Suite Standard Master Suite Executive Suite Standard Room Project ville Executive Master Suite Standard Master Suite Standard Room Other Incomes Bar & Restaurant PerUnit 1,100,000.00 Other income 2,673.963.00 62.893.00 Capex 36,467.00 ofe No. of Beds Occup Rate/ ancy bed Rate Day 4.500 10 50% 18 501 60% 200 8888 915,000 184,000 180 180 180 2801 3.70% 200 6531 5 701 180 180 180 2 60% 1,300 Daily 8.000 Cost of Sale/Variable Cost Sales Commission 200 General Admin Cost Profit from operations for year 1 to 3 Total Cash Flows from year 1 to 3 Discounted Cash Flows and the NPV for year 1-3, Return on Investments (ROI) Internal Rate of Returns (IRR) Pay Back Period Assuming WACC of 30%. Food Beverages Food & Bev. Exp Other Kitchen Purch Sales & Marketing Marketing Utilities surance Repairs & Maint Fuel Travel and Transport Comm. internet Printing & Stationery Staff Training First Aid Donation Professional Fees Rate Per Un 55% of bar and retaurant me 25% of food expenditure 7% of food expenditure 700 per month 2500 per month 0.005 of Room income 6,000 per month 10,000 per year 2,000 per month 3,200 per month 1,000 per month 1,500 per month 800 per month 5,000 per quarter 1,500 per month 800 per month 10,000 Per year Twelve Stones Properties Limited is a social enterprise private Company incorporated to re-configure the dynamics between the private sector, development sector and rural communities through innovation of real estate activities. In order to realize its vision, the Company intends to construct two residential 60- bedroom hotel apartments in 2 communities of Ghana. The company therefore seeks to raise GHS1,100,000 comprising CAPEX Financing and Working Capital financing to fully complete and launch its hotel business in Ghana. After technical and financial due diligence, the following revenue items have been extracted: Human Resources 1. CEO 2 Manager 3. Bar Manager 4 Accountant 4 Storekeeper/Cooks 5. Drivers 6. Ber Attendant 7. Watchman Day & Watchman Nite 9. Cleaner Total No.of Emplo yees Loan Des Noceeds from Loun Existing an interest Principal Repayment methly ii. in. iv. 1 V. 1 vi. 2 1 2 2 Calculate the following: i. 4 2 2 3 30 Full-time monthly Salary Revenue Room 450.00 400.00 4,000.00 2,500.00 1,000.00 2.000.00 600.00 500.00 Project 2 500.00 Villa 400.00 Executive Master Suite Standard Master Suite Executive Suite Standard Room Project ville Executive Master Suite Standard Master Suite Standard Room Other Incomes Bar & Restaurant PerUnit 1,100,000.00 Other income 2,673.963.00 62.893.00 Capex 36,467.00 ofe No. of Beds Occup Rate/ ancy bed Rate Day 4.500 10 50% 18 501 60% 200 8888 915,000 184,000 180 180 180 2801 3.70% 200 6531 5 701 180 180 180 2 60% 1,300 Daily 8.000 Cost of Sale/Variable Cost Sales Commission 200 General Admin Cost Profit from operations for year 1 to 3 Total Cash Flows from year 1 to 3 Discounted Cash Flows and the NPV for year 1-3, Return on Investments (ROI) Internal Rate of Returns (IRR) Pay Back Period Assuming WACC of 30%. Food Beverages Food & Bev. Exp Other Kitchen Purch Sales & Marketing Marketing Utilities surance Repairs & Maint Fuel Travel and Transport Comm. internet Printing & Stationery Staff Training First Aid Donation Professional Fees Rate Per Un 55% of bar and retaurant me 25% of food expenditure 7% of food expenditure 700 per month 2500 per month 0.005 of Room income 6,000 per month 10,000 per year 2,000 per month 3,200 per month 1,000 per month 1,500 per month 800 per month 5,000 per quarter 1,500 per month 800 per month 10,000 Per year
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Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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