Financial Assumption

1. The company is a General Partnership.

2. Partners Contribution is P7, 000,000.00. Maao-50%, Umali-25%, Pujante-25%
3. Companys Income is divided equally.
4. No partners withdrawal of cash, accumulated cash is for business expansion.
5. All revenue is in a form of cash.
6. The company established Petty cash fund to cover its small expenses,
7. Cash in excess of the needed operating expenses are to be invested in the short term investment.
8. Cost of purchases is affected by the inflation rate of 2.6% per annum, and market growth of 5.23%
per annum.
9. Projected Revenue and Purchases are assumed to be Gross of VAT.
10. Salary of every employee increase by P10.00 per six months.
11. Acquisition of Plant, Equipment and Land Is assumed to be net of VAT.
12. All Supplies purchased are for one year and no yearend supplies.
13. Payment of salaries expense is three days after the cut off period.
14. Payment of withholding taxes on compensation is every 10th day of the following month, except for
the last month of the year which is to be paid in the 20th day of the following month.
15. Payment of SSS, HDMF, and PHIC is in subsequent month, depends on the members ID number.
16. Utilities are assumed to be paid a day after the month it is incurred.
17. Interest income received is assumed to be net of 20% final tax.
18. Fair Value of Land is assumed to be unchanged.