SECTION 6

FINANCIAL ANALYSIS

A. Objectives

To be able to assess the needs that we are going to use as we establish it.

To be able to assess the flow of our business using our shares and capital.

To be able to predict the possible profit and losses of the company

B. Initial Investment
Each partner will invest a total of Php 500, 000 each:
Name
Rochelle Jastiva
Julia Baun
Erika Berboso
Rizza Mae Divinagracia
Joseph Lagapa
Katrina Vitug
Total

Capital Contribution
Php500,000
Php500,000
Php500,000
Php500,000
Php500,000
Php500,000
Php3,000,000

Table 6.1
Initial Investment

C. Pre-operating Expenses

Investment
Total Investment Amount:

P 3,000,000

Acquisition of Equipments

Name of Machines
L3OO

Quantity
3

Unit Cost
10,000

Total Cost
30,000

10,000

P 30,000

TOTAL:

Table 6.2
Acquisition of Equipment

Acquisition of Inventory and Supplies

Name of
Supplies
Order Forms

Quantity

Unit Cost

Total Cost

500 sheets

350

350

Record Book

120

240

File Organizer
Rack
Ballpens

400

400

10

100

100

Calculator

450

450

Cash receipts

150

300

515

1,570

1,840

Total

Table 6.3
Acquisition of Inventory and Supplies

Acquisition of Utilities
Utility Company

Meralco
Rent
Total

Services
Electricity
Rent
Table 6.4
Acquisition of Utilities

Consumption
per month
1,800
6,000
7,800

JERK COMPANY TRADING

BALANCE SHEET
ASSETS
NON CURRENT ASSETS
Office Equipment
CURRENT ASSETS
Cash
Accounts Recievable
Supplies Inventory
TOTAL ASSETS

Dr
Php 750,000

1,500,000
750,000
6,000

LIABILITIES
CURRENT LIABILITIES
Accounts Payable
OWNER'S EQUITY
JERK Capital
TOTAL OWNERS EQUITY AND LIABILITIES

60,000

Cr
Php 750,000

90,600
Php 3,000,600

60,000
3,000,000
Php 3,000,600

JERK'S COMPANY
INCOME STATEMENT
MONTH ENDED DECEMBER 31, 20116
Net profit
COST OF SALES
Gross profit
Rental Income
LESS
Selling Cost
NET PROFIT

Php 110,000
44,000
Php 154,000
30,000
13,400
Php 170, 560

JERK'S TRADING
STATEMENT OF CASH FLOWS
MONTH ENDED DECEMBER 31, 2016

Operating Activities
Collection of Accounts Received
Rental Income received
Payments of Accounts Payable
Salaries Expense
Light & water Expense
Communication Expense
Advertising Expense
Net cash flow from operations

750,000
60,000
60,000
172,800
144,000
648,000
Php 1,864,800

JERK'S TRADING
STATEMENTS AND CHANGES OF OWNER'S EQUITY
FOR THE MONTH ENDED DECEMBER 2016
Beginning Captital
Add net profit
less withdrawal
Ending Capital

Php 300,000,000
170,560
0
Php 1,758.91182