Financial Aspect

For every business venture, the financial aspect is an essential matter that
each of the proponents must know. It provides a glimpse whether the proposed
business will be profitable or not by projecting the financial picture and on how the
owner can minimize its costs and maximize the benefits.

A. MAJOR ASSUMPTIONS

1. The company will have a total capitalization of 1,000,000 from the

four(4) partners contributing 250,000 each which approximates the
total project cost.

2. Service Revenue as to number of customers availing the laundry

services offered will increase by 11%

3. Purchase of laundry supplies and amount expensed increase by 5%

every year and were made on cash basis.

4. Laundry supplies such as detergent sold by the shop to its customer

has a markup of 20% on cost.

5. Laundry Materials are replaced every year.

6. Repairs and maintenance expense is set at 5 % of the annual
depreciation of all the fixed assets.

7. Rent expense is increased by 5% every year based from escalation

agreement of the lessor and lessee.

8. Cost of Utilities is subject to 3% increase every year.

9. Store materials are purchased every year wherein the price is
assumed to increase by 2%.

10. Advertising expense is fixed every year.

11. Repairs and maintenance expense is set at 5 % of the annual
depreciation of all the fixed assets.

12. All purchase of materials, supplies are paid in cash

13. Salaries expense are payable every last day each month.
14. Payment for VAT is made on the following month after the reporting
period.

15. All employees are presumed to be single and that they have no
dependents for purposes of computing withholding tax.

16. The machines, equipment and leasehold improvements are to be

depreciated on a straight-line basis.

17. Depreciated equipment have no scrap value at the end of their

useful life

18. Each partner is allowed for a maximum withdrawal of 10, 000 every
year.

19. Profits will be divided equally to the partners

20. Income tax used is 30%