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GDS MANUFACTURING CORP.

UNDERLYING ASSUMPTIONS

1. Quantity sold is estimated to increase by 20% over the previous year.
2. Unit selling price is projected to increase by 10% over the previous year.
3. Employees' benefits are estimated at 20% of salaries and wages
4. Inventory at the end of the period is immaterial, hence, not recognized
5. Administrative as well as marketing and selling expenses ae projected o increase by 10% over the previous year.
6. Accounts receivable is estimated at 50% of sales for the quarter and collected in the suceeding quarter.
7. Debt to equity ratio is 40:60. Hence, short-term loan is obtained at about 40% of the capital requirement.
8. Interest rate is estimated at 12% per annum.
9. Income tax is computed at 35% of taxbale income.
10. Idle funds seemed to remain in the company's custody although in the actual, these are placed in
income yielding investments.

000 200. INITIAL CAPITAL REQUIREMENT Property and Equipment Leasehold improvement Computer equipment Service vehicle Tables and chairs Steel cabinet Initial Working Capital 200.000 1.020.000 60.805 say 1.000 .000 1.GDS MANUFACTURING CORP.000.000 20.000 say 700.665.135.000 1.805 TOTAL 1.700.0 say 1.000.000 50.000 LOAN (40%) EQUITY (60%) 680.700.

000 24.000 60.000 1 2 12.240 290.000 96.000 36.000 36.000 30.554 150.000 10.000 60.000 24.000 24.000 12.600 290.000 264.000 144.000 150.400 264.000 36.GDS MANUFACTURING CORP.000 174.000 20.776 351.000 10.000 798.000 660.240 145.000 158.000 30. MANPOWER COMPLEMENT POSITION Administrative 1 General Manager 2 Accountant 3 Cashier 4 Janitor/Messenger BASIC 20.000 120.000 150.000 60.000 96.384 210.830 175.000 150.000 60.000 10.664 159.000 600.000 8.830 351.692 140.000 158.000 105.000 60.000 36. OF STAFF 1 1 1 1 MONTHLY SALARY 20.400 174.000 96.000 Q1 Q2 YEAR 1 Q3 Q4 TOTAL YEAR 2 YEAR 3 YEAR 4 YEAR 5 60.000 NO.440 210.200 116.720 127.000 36.104 562.000 144.460 36.000 384.000 8.400 191.000 TOTAL Selling and Marketing 1 Marketing Supervisor 2 Marketing Staff TOTAL 12.000 60.440 191.384 96.160 319.600 878.000 30.000 36.000 240.640 511.214 .000 24.000 12.000 726.000 422.000 96.664 319.000 60.400 464.000 36.000 30.000 240.400 132.

00 . PRICE ANALYSIS Direct Materials Direct Labor Factory Overhead Supplies Indirect labor Light and water Others 30.00 100.00 SELLING PRICE PER UNIT 2.00 2.00 10.00 Total 50.00 3.00 3.GDS MANUFACTURING CORP.00 Markup (100%) 50.

000 12.000 10.500 1.000 86.000 20.000 .000 10.000 12.000 10.000 40.000 40.000 50.500 1.000 20.000 86.500 21.000 10.000 20.000 10.000 20.000 40.GDS MANUFACTURING CORP.500 1.000 4.000 4.000 12. LAPSING SCHEDULE PARTICULARS 1 2 3 4 5 Leasehold improvement Computer equipment Service vehicle Tables and chairs Steel cabinet TOTAL NO.000 5.000 4.000 2.000 10.000 2.000 5.500 21.000 4.000 12.000 86.000 TOTAL AMOUNT USEFUL LIFE 200.500 21.000 10.000 3.000 Q1 Q2 YEAR 1 Q3 Q4 TOTAL YEAR 2 YEAR 3 YEAR 4 YEAR 5 5.000 10.000 10.500 1.000 2.000 60.500 86.000 20.000 3.000 2.000 10 5 5 5 5 530.000 20.000 40.000 200.000 86.000 10.000 3.000 12.000 20.000 200.000 40.000 21. OF UNIT lot 3 1 10 2 UNIT COST 200.000 4.000 5.000 5.000 3.

300.920 7.000 625.000 625.894 .21 TOTAL Q1 Q2 YEAR 1 Q3 Q4 TOTAL 625.000 625.000 U.589.749.894 625.000 YEAR 2 YEAR 3 YEAR 4 YEAR 5 3.GDS MANUFACTURING CORP.500.000 2.000 60.50 YEAR 4 86.589.00 YEAR 2 60.55 YEAR 5 103.000 5.680 73.749.356.000 625.500.000 5.000 3.000 4.000 2.000 55. SCHEDULE OF COST OF SALES YEAR 1 QTY 50.000 625.000 625. COST 50.00 YEAR 3 72.356.920 7.300.400 66.000 4.

000 11.400.000 121.000 1.250.789 1.991.680 146.840 15.250.499.499.179.000.000 5.000 8. PRICE 100.712.000 1.000 8.789 46.000 4.250.250.250.000 1.000 5.000 110.600.400 133.000 6.250.250.000 1.000 11.712.600.375.250.094.250.179.151.000 YEAR 2 YEAR 3 YEAR 4 YEAR 5 6.629 625.00 YEAR 2 60.000 1.00 YEAR 3 72.795 45.10 YEAR 5 103.000 1.000 U.GDS MANUFACTURING CORP.719.000 8. SCHEDULE OF SALES YEAR 1 QTY 50.41 TOTAL COLLECTIONS Q1 Q2 YEAR 1 Q3 Q4 TOTAL 1.000.000 11.448.250.155 .250.000 1.000 1.360 14.00 YEAR 4 86.000 1.000 6.840 15.

000 3. SCHEDULE OF SELLING AND MARKETING EXPENSES TOTAL Q1 Q2 YEAR 1 Q3 Q4 TOTAL YEAR 2 YEAR 3 YEAR 4 Salaries and wages Employees' benefits Transportation Representation Miscellaneous 2.218 134.800 590.104 102.000 10.200 6.261 96.000 10.040 48.400 44.000 10.640 92.000 422.522 244.000 19.204 73.000 12.972 TOTAL 3.200 536.000 19.358 468.872 146.240 15.000 96.221 31.000 10.200 6.000 3.000 76.480 649.000 3.000 40.200 134.344.200 6.000 19.000 384.000 13.200 6.200 134.000 3.000 96.200 464.277.400 84.528 714.520 511.200 134.481 .400 14.GDS MANUFACTURING CORP.944 53.000 96.800 24.928 29.000 19.480 26.

569 785.214 112.929 .443 35.YEAR 5 562.564 17.138 58.

692 17.000 15.600 1.944 159.000 3.000 3.000 14.000 18.200 26.000 3.860 95.000 15.000 30.GDS MANUFACTURING CORP.000 72.612 73.000 30.000 13.500 3.000 9.460 175.000 5.000 6.000 132.400 145.465.600 87.500 3.000 15.000 86.000 30.000 12.000 3.000 60.522 146.000 6.972 878.384 175.000 60.000 145.832 31.000 9.000 15.000 150.665.944 31.040 29.846 105.000 600.316 2.196.440 159.138 35.102 73.200 22.400 132.000 120.200 290.720 319.000 6.569 TOTAL 9.400 26.000 3.620 15.000 150.500 359.000 66.000 12.000 30.000 3.200 72.500 359.000 60.663.924 359.306 439.000 73.000 21.720 15.200 14.000 240.972 86.138 175.612 1.000 120.522 732.500 3.720 79.000 30.000 17.000 6.000 5.569 29.224 732.000 60.600 159.200 726.000 18.997.000 1.261 430.000 264.000 15.000 30.000 20.261 150.500 1.000 12.060 732.000 5.415 35.000 79.000 9.560 1.520 24.000 21.000 660.692 351.000 30.000 30.000 3.000 120.120 29. SCHEDULE OF ADMINISTRATIVE EXPENSES TOTAL Q1 Q2 YEAR 1 Q3 Q4 TOTAL YEAR 2 YEAR 3 YEAR 4 YEAR 5 Salaries and wages Employees' benefits Rent expense Light and water Supplies expense Communication Taxes and licenses Transportation Fuel and oil Repairs and maintenance Representation Insurance Depreciation Miscellaneous 3.000 60.569 86.567 146.000 9.200 14.000 6.692 87.188.000 24.200 86.000 132.500 3.000 21.520 86.522.448 .000 5.000 3.040 145.261 122.000 6.000 24.000 150.000 13.520 798.000 18.000 18.282 17.000 21.612 366.000 13.500 359.000 6.823.972 26.000 6.

00% 100.74% 5.00% 50.21% 3.41% 8.37% 0.74% 10.68% 10.09% 5.00% 50.39% 0.00% 50.09% 3.74% 28.00% 50.17% 19.45% 8.00% 50.76% 1.59% 23.82% 8.18% 41.00% 50.00% 50.82% 21.00% 100.00% 50.00% 50.21% 17.82% 8.00% 26.82% 8.00% 100.74% 28.68% 8.74% 28.00% 50.00% 50.25% 10.18% 34.74% 5.76% 1.76% 1.61% 26.00% 100.28% 14.00% GROSS PROFIT 50.00% 6.00% 100.09% 3.00% 50.74% 5.00% 50.18% 41. PROJECTED COMMON-SIZED INCOME STATEMENT TOTAL SALES Q1 Q2 YEAR 1 Q3 Q4 TOTAL YEAR 2 YEAR 3 YEAR 4 YEAR 5 100.54% 7.09% 3.82% 8.76% 1.24% 0.00% 100.00% COST OF SALES 50.42% 0.68% 10.18% 14.00% 50.00% 50.68% 10.56% 9.46% 20.00% OPERATING EXPENSES Selling and marketing expenses Administrative expenses Interest expense 6.18% 41.55% 41.00% 100.76% Total INCOME BEFORE TAX PROVISION FOR INCOME TAX (35%) NET INCOME .25% 5.97% 19.00% 50.93% 0.18% 28.00% 100.64% 15.00% 7.09% 3.74% 5.74% 28.00% 5.82% 15.18% 10.68% 10.58% 19.18% 41.00% 50.05% 17.GDS MANUFACTURING CORP.00% 50.42% 30.76% 1.39% 23.74% 28.95% 25.00% 100.

24% 98.00% 100.30% 39.39% 3.87% 1.66% 27.44% 3.32% 34.29% 11.GDS MANUFACTURING CORP.00% 100.28% 71.02% 35.23% 0.00% 100.19% 16.00% 100.33% 14.95% 29.22% 100.00% 100.55% 35.49% 5.26% 6.53% 23.47% 68.60% 2.00% 100.13% 3.70% 10.62% 8.68% 3.05% 3.85% 10.25% 3.25% 7.02% 3.35% 10.75% 18.33% 26.64% 75.31% 10.22% 11.18% 10.75% 100.90% 73.23% 63.64% 100.06% 32.80% 28.00% 100.00% 100.16% 1.00% 0.73% 0.07% 3.78% 57.00% 19.00% 39.75% 2.85% 3.69% 46.91% 1.00% 12.58% 43.00% 100.00% 100.36% 80.00% 100.45% 50.68% 33.64% 100.00% 100.00% 0.25% 87.46% 77.45% 0.27% 6.97% 8.53% 3.42% 10.65% 39.84% 96.45% 2.52% 26.66% 3.19% 31.00% 100.21% 28.09% 8.00% 56.00% 100.18% 3.49% 54.36% 68.51% 37.00% 31.36% 10.78% 62.44% 10.33% 22.15% 91.56% 27.88% 49.86% 6.43% 64.81% 41.05% 60.22% 6.00% 0.03% 52.27% 1. PROJECTED COMMON-SIZED BALANCE SHEET YEAR 1 Q1 ASSSETS Current Assets Cash Accounts receivable Total Current Assets Property and Equipment Leasehold improvement Service vehicle Computer equipment Furniture and equipment Total Accumulated depreciation Net Book Value TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Loans payable Stockholders' Equity Capital stock Retained Earnings Total Stockholders' Equity TOTAL LIABILITIES & STOCKHOLDERS' EQUITY Q2 Q3 Q4 YEAR 2 YEAR 3 YEAR 4 YEAR 5 36.88% 2.40% 75.27% 1.37% 24.78% 11.00% 100.12% 100.77% 50.97% 36.29% 3.68% 4.07% 10.56% 26.87% 3.98% 81.44% 4.00% .

625.NET PRESENT VALUE NET INCOME PV FACTOR AT 12% YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 286.309 2.797 0.255.700.701.924.000.049 TOTAL 4.318 1 1 0.318 DISCOUNTED CUMULATIVE PAYBACK VALUE PERIOD 256.803 871.223.269 4.780 678.548 1.567 PRESENT VALUE 256.897 1.893 0.636 0.893 1.087 0.095 540.095 796.412 1.925.625.95 .712 0.960 1.780 3.668.974.000 NET PRESENT VALUE 2.95 2.318 INVESTMENT 1.

195 752.000 1.000.814 3.000 2.000 700.420 3.541 1.250.780 782.352.585 6.614 - .135.780 1.585 917.000 4.402.166.107 9.230.277.000 1.001.356.665.981.795 46.585 TOTAL YEAR 2 0 YEAR 3 YEAR 4 YEAR 5 917.195 1.540.360 14.448.794.000 8.151.000 38.221 3.795 TOTAL CASH AVAILABLE 46.316 CASH DISBURSEMENTS: Acquisition of property and equipment Cost of sales Marketing expenses Administrative expenses Income tax 530.000 700.000 84.448 1.155 1.950.166.605 625.000 700.000 700.019 5.000 700.000 21.250.328 12.894 785.702 6.325.888.073.000 - - - - 784.000 700.000 - - - 6.260.805 1.GDS MANUFACTURING CORP.000 6.221 - 3.979.400.000 1.780 9.000 6.000 23.000 84.220 5.000 700.155 2.343 7.000 21.000 38.000 154.843.540.589.000 84.390 2.000.000 1.390 845.316 1.719.000 1.000 21.528 1.155 2.000 21.605 625.000 21.737.218 8.195 731.581 18. ENDING LOAN BALANCE - 1.000 134.780 917.911.585 938.835.221 3.614 700.805 1.000 7.325.390 824.135.521 6.560 659.682.828.317.000 1.166.375.000 21.794.328 700.000.605 530.000 1.200 338.452 7.439.328 1.780 1.250.920 714.200 338.000 536.250.000 21.614 659.102.328 1.372 4.749.060 12.800 1.000 590.000 134.805 5.614 638.481 1.200 338.605 625.828.300.400.063.586 530.135.000 134.093.924 3.000 700.828.000 11.200 338.000 1.195 731.250.075.780 782.719.151.431 39.000 625.540. PROJECTED CASH FLOW STATEMENT TOTAL CASH BALANCE.480 1.000 38.000 38.390 824.000 134.857.600 365.448.000 21.360 14.500.521 45.579.000 Total Total BALANCE BEFORE LOAN SERVICING LOAN SERVICING Principal Interest Total CASH BALANCE.074.000 8.929 2.000 625.495.000 700.075.250. BEGINNING CASH RECEIPTS: Collection of receivables Initial/Additional investment Loan proceeds Q1 0 Q2 0 YEAR 1 Q3 Q4 638.805 1.094.000 649.482.000 1.615.000 6.000 11.521 - 6.

000 70.780 1.000 200.780 625.000 186.328 1.965.500 508.695 1.001 5.000 286.071.221 1.780 1.085 1.965.000 60.000 70.263.000 344.843.000.390 1.000 200.521 1.000.000 1.780 782.000 200.000 200.000 86.000.000 70.607.000 2.000 1.585 625.614 1.088 200.000 200.978.000 71.195 625.390 824.585 917.164.000 530.000.221 3.000 444.000 965.189.000 358.000.000 60.166.089.897.500 200.164.000 530.000 60.000 1.000 530.085 1.088 8.390 625.000 700.000 64.189.215.500 200.286.000 70.221 5.000 60.000 100.000.189.437.000 43.695 1.000 60.085 1.843.965.000 1.001 1.771.001 6.328 1.915.000 530.000 200.064.000 70.000 60.000 200.000 700.000 530.917.474 8.986.221 5.000 2.085 1.195 731.000 1.328 1.540.328 825.390 1.164.915.000 143.221 3.356.390 1.000 70.221 1.000 60.001 8.449.000 272.000 200.000 258.164.542.000.500 465.164.000 200.828.000 200.164.328 3.088 700.164.000 4.695 1.000 21.088 1.390 1.000 700.000 200.000 215.986.000 200.164.695 1.000 530.000 430.001 8.000 7.328 3.000 1.000 172.000 200.000 70.780 1.088 - - - - .000 530.000 70.000.480 4.000 530.771.780 1.143.000 60.000 487.GDS MANUFACTURING CORP. PROJECTED BALANCE SHEET YEAR 1 Q1 ASSSETS Current Assets Cash Accounts receivable Total Current Assets Property and Equipment Leasehold improvement Service vehicle Computer equipment Furniture and equipment Total Accumulated depreciation Net Book Value TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Loans payable Stockholders' Equity Capital stock Retained Earnings Total Stockholders' Equity TOTAL LIABILITIES & STOCKHOLDERS' EQUITY Q2 Q3 Q4 YEAR 2 YEAR 3 YEAR 4 YEAR 5 638.189.000 1.

000 8.316 - 12.000 1.300 110.088 2.814 625.857.800 1.823.605 38.780 OPERATING EXPENSES Selling and marketing expenses Administrative expenses Interest expense Total INCOME BEFORE TAX PROVISION FOR INCOME TAX (35%) ` NET INCOME 7.882.021.300 441.058.495.000 625.495.629 1.300 110.000 1.700 2.000 134.300.605 38.019 1.000 1.GDS MANUFACTURING CORP.997.000 2.043.700 514.000 625.500.912 3.548 1.586 38.000 3.749.300.711.000 134.974.088 71.920 1.356.000 625.164.924 84.499.343 286.560 - 714.000 625.200 359.000 3.250.277.000 590.500.797 11.112.991.372 659.000 11.893 1.256.200 1.481 1.200 359.749.000 4.218 9.000 536.438.200 359.000 2.712. PROJECTED INCOME STATEMENT TOTAL Q1 Q2 YEAR 1 Q3 Q4 TOTAL YEAR 2 YEAR 3 YEAR 4 SALES 46.000 5.141 514.223.600.356.038.063.673 110.695 71.000 625.000 5.500 21.300 110.700 514.920 3.200 359.500 21.695 71.800 2.500 21.000 4.695 .665.695 71.840 COST OF SALES 23.605 38.250.500 21.480 1.420 365.000 625.780 678.250.250.473.474.920 GROSS PROFIT 23.000 134.000 6.000 5.814 625.123 3.000 134.080 2.000 84.528 1.605 154.600 - 649.700 514.000.

087 .448 2.894 7.589.518 1.000.615.179.789 7.894 785.376 4.188.974.615.929 2.YEAR 5 15.431 3.589.