FINANCIAL PLAN 92

4.4 Profit and Loss Statement

DOG LUGGAGE COMPANY
STATEMENT OF COMPREHENSIVE INCOME
For the period ended 2019-2023
Note 2019 2020 2021 2022 2023

Sales 1 9,400,218 10,069,514 10,786,463 11,554,459 12,377,137

less: Cost of Sales 2 8,134,087 8,419,990 8,716,533 9,027,904 9,354,844
Gross Profit 1,266,131 1,649,524 2,069,930 2,526,555 3,022,293
less: Operating Expenses
Advertising Expense 3 319,076 307,001 295,530 284,632 274,279
Auto and Truck Expenses 4 30,000 30,000 30,000 30,000 30,000
Pre-operating expenses 5 91,518 0 0 0 0
HDMF Expense 6 42,432 42,432 42,432
Miscellaneous Expense 7 0 0 0 0 0
PHIC Expense 6 19,800 19,800 19,800 19,800 19,800
Rent Expense 734,400 734,400 734,400 734,400 734,400
SSS Expense 6 64,080 64,080 64,080 64,080 64,080
Taxes and Licenses 8 3,935 6,860 3,860 3,860 6,860
Supplies-Store 9 42,945 42,945 42,945 42,945 42,945
Utilities-store 10 30,000 30,000 30,000 30,000 30,000
VAT on Importation 11 94,800 0 0 0 0
Travel 12 12,000 12,000 12,000 12,000 12,000
less: Operating Expenses 1,484,986 1,289,518 1,275,047 1,221,717 1,214,364
Net Income before Tax -218,855 360,006 794,883 1,304,838 1,807,929
less: Income Tax Expense 0 0 95,386 156,581 216,951
Net Income after Tax -218,855 360,006 699,497 1,148,257 1,590,977
 FINANCIAL PLAN 92

4.5 Cash Flow Statement

DOG LUGGAGE PARTNERSHIP
Statement of Cash Flows
For the period ended 2019-2023
Note 2019 2020 2021 2022 2023
Operating Activities
Cash received from 1 9,400,218 10,069,514 10,786,463 11,554,459 12,377,137
customers
Output VAT 13 1,128,026 1,208,342 1,294,376 1,386,535 1,485,256
Add: Depreciation 268,617 272,097 272,097 272,097 272,097
Expense
Total Cash Inflows 10,796,861 11,549,952 12,352,936 13,213,091 14,134,490
Cash paid for:
DM (5,366,031) -5,916,756 (6,212,593) (6,523,223) (6,849,384)
DL (724,800 -724,800 -724,800 -724,800 -724,800
OH (1,760,833) (1,764,313) (1,764,313) (1,764,313) (1,764,313)
Pre-operating (91,518) - - - -
advertising (319,076) (307,001) (295,530) (284,632) (274,279)
auto and truck (30,000) (30,000) (30,000) (30,000) (30,000)
HDMF (38,896) -42,432 -42,432
VAT for importation (94,800) - - - -
miscellaneous - - - - -
PHIC (18,150) -19,800 -19,800 -19,800 -19,800
Rent (734,400) (734,400) (734,400) (734,400) (734,400)
SSS (58,740) -64,080 -64,080 -64,080 -64,080
Supplies (42,945) (42,945) (42,945) (42,945) (42,945)
Taxes and Licenses (3,935) (6,860) (3,860) (3,860) (6,860)
 FINANCIAL PLAN 92

Travel (12,000) (12,000) (12,000) (12,000) (12,000)

Utilities-store (30,000) (30,000) (30,000) (30,000) (30,000)
Input VAT 13 (685,636) (719,526) (755,112) (792,476) (831,709)
Income Tax Payable last 0 0 -95,386 -156,581
year
VAT Payable last year SFP -442,391 -488,815 -539,264 -594,059
less: Total Cash Outflows (10,011,760) (10,857,303) (11,220,680) (11,661,179) (12,135,210)
Total Cash Flow from 785,101 692,649 1,132,256 1,551,912 1,999,280
operating

Investing Activities
Purchase of Machineries 14 (1,116,599)
Purchase of Furnitures 15 (79,444)
and Fix
Factory 16 (4,203,030)
Cash Flow from Investing (5,399,073) - 0 0 0
Activities

Financing Activities
Contribution from 11,127,607 - - -
Partners
Withdrawals - 600,000 (600,000) (1,200,000) (1,500,000)
Cash Flow from financing 11,127,607 (600,000) (600,000) (1,200,000) (1,500,000)
Activities

Cash, beg - 6,513,635 6,606,284 7,138,540 7,490,452

Add: Adjustments 6,513,635 92,649 532,256 351,912 499,280
Cash, end 6,513,635 6,606,284 7,138,540 7,490,452 7,989,732
 FINANCIAL PLAN 92

4.6 Balance Sheet

DOG LUGGAGE PARTNERSHIP
STATEMENT OF FINANCIAL POSITION
AS OF YEAR ENDED 2019-2023

Not
e 2019 2020 2021 2022 2023
ASSETS
Current Assets
Cash on hand SCF 6,513,635 6,606,284 7,138,540 7,490,452 7,989,732

Non Current Assets

Machineries 1,116,599 1,116,599 1,116,599 1,116,599 1,116,599

Accumulated Dep (78,773) (157,547) (236,320) (315,093) (393,866)

Furnitures and
Fixtures 79,444 79,444 79,444 79,444 79,444

Accumulated Dep (4,692) (12,864) (21,037) (29,209) (37,381)

Factory
Building 4,203,030 4,203,030 4,203,030 4,203,030 4,203,030

Accumulated Dep (185,152) (370,303) (555,455) (740,606) (925,758)

Land 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
Total Assets 14,144,091 13,964,643 14,224,802 14,304,617 14,531,801
 FINANCIAL PLAN 92

LIABILITIES AND EQUITY

Liabilities
HDMF Payable 3,536 3,536 3,536 3,536 3,536
PHIC Payable 1,650 1,650 1,650 1,650 1,650
SSS Payable 5,340 5,340 5,340 5,340 5,340
DM Payable 282,423 296,544 311,371 326,940 343,287
VAT Payable 442,391 488,815 539,264 594,059 653,548
Income tax pay 0 0 95,386 156,581 216,951

Equity
Benigno, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
Compas, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
Papay, Capital 4,318,125 4,278,126 4,294,709 4,286,085 4,301,248
Pimentel, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
San Mateo, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
Sharief, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248

Total Liabilities and Equity 14,144,091 13,964,643 14,224,802 14,304,617 14,531,801

 FINANCIAL PLAN 92

Notes:

Note 1:

Total Sales Forecast for Five Years

2019 2020 2021 2022 2023
Sales Forecast 918 955 993 1,033 1,074
Selling Price 10,240 10,547 10,864 11,190 11,525
Total Sales 9,400,320 10,069,623 10,786,580 11,554,584 12,377,271

Note 2:

Cost of Goods Sold

2019 2020 2021 2022 2023 2024
Raw Materials Beg - - - - - -
Add: Purchases 5,648,454.00 5,930,876.70 6,227,420.54 6,538,791.56 6,865,731.14 7,209,017.70
Raw Materials
5,648,454.00 5,930,876.70 6,227,420.54 6,538,791.56 6,865,731.14 7,209,017.70
Available for Use
Less: Raw
- - - - - -
Materials, End
Raw Materials
5,648,454.00 5,930,876.70 6,227,420.54 6,538,791.56 6,865,731.14 7,209,017.70
Used
Direct Labor 724,800.00 724,800.00 724,800.00 724,800.00 724,800.00 724,800.00
Factory 1,764,312.8
1,760,833.07 1,764,312.83 1,764,312.83 1,764,312.83 -
Overhead 3
Total
Manufacturing 8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Cost
 FINANCIAL PLAN 92

Add: Work in
- - - - - -
Process, Beg
Total Goods in
8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Process
Less: Work in
- - - - - -
Process, End
Cost of Goods
8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Manufactured
Add: Finished
- - - - - -
Goods, Beg
Total Goods
Available for 8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Sale
Less: Finished
- - - - - -
Goods, End
Cost of Goods
8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Sold

Note 3:

PROJECTED ADVERTISING EXPENSE

Pre-
Items operating 2019 2020 2021 2022 2023

Official Website 351,520 17,576 17,576 17,576 17,576 17,576

E-banner 15,000 60,000 60,000 60,000 60,000 60,000

Brochure and flyers 15,375 61,500 58,425 55,504 52,729 50,092

 FINANCIAL PLAN 92

Newspaper
Publication 45,000 180,000 171,000 162,450 154,328 146,611
Total Advertising
Expense 426,895 319,076 307,001 295,530 284,632 274,279

Note 4:

PROJECTED AUTO AND TRUCK EXPENSES

Items Pre-
operating 2019 2020 2021 2022 2023
Gasoline Expense
4,500 18,000 18,000 18,000 18,000 18,000
Travel Expense
3,000 12,000 12,000 12,000 12,000 12,000
Total Auto and

Truck expenses
7,500 30,000 30,000 30,000 30,000 30,000

Note 5:

Other Pre-operating expenses

Organizational Activity Amount
BIR Registration Form 500
Community Tax Certificate 500
SEC Registration 4500
Legal Fee 450
 FINANCIAL PLAN 92

Documentary Stamp 25
Depreciation Expense 19693
Business Name Registration 500
Employees Seminars and Training 10000
Renovation Expense 50000
Hiring Expense 5000
Notary Public Fee 350
Total 91,518

Note 6:

GOVERNMENT PREMIUM EXPENSE

Item Pre-operating 2019 2020 2021 2022 2023
HDMF Premium 10608 42432 42432 42432 42432 42432
PHIC Premium 4950 19800 19800 19800 19800 19800
SSS Premium 16020 64080 64080 64080 64080 64080
Total HDMF,
PHIC, SSS
Expenses 31578 126312 126312 126312 126312 126312

Note 7:
PROJECTED MISCELLANEOUS EXPENSE
Items Pre-operating 2019 2020 2021 2022 2023
Factory workers uniform 960 0 0 0 0 0
Office workers uniform 1820 0 0 0 0 0
sales men uniform 360 0 0 0 0
Total Miscellaneous 3140 0 0 0 0 0
 FINANCIAL PLAN 92

Note 8:
Taxes and Licences
Pre-
Items operating 2019 2020 2021 2022 2023 2024

Mayors Permit 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Inspection Fees 200 200 200 200 200 200 200

Sanitary Fees 100 100 100 100 100 100 100

Garbage Fees 500 500 500 500 500 500 500

Permit Fee on Action 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Zoning Clearance Fee 75 75 - - - - -

Business plate/ Stickers
Fee 10 10 10 10 10 10 10

Provincial Fee 50 50 50 50 50 50 50

BIR renewal 500 500 500 500 500 500 500

DTI renewal 500 500 500 500 500 500 500

LTO renewal - 0 3000 - - 3,000 -

Total Taxes and Licences 3,935 3,935 6,860 3,860 3,860 6,860 3,860
 FINANCIAL PLAN 92

Note 9:
Supplies Expense
pre-
operating 2019 2020 2021 2022 2023

Retail Store Supplies 2,625.00 10,500.00 10,500.00 10,500.00 10,500.00 10,500.00

Manufacturing
Supplies 5,557.75 22,231 22,231 22,231 22,231 22,231

Office Supplies 7,932.00 31,728 31,728 31,728 31,728 31,728

Other Supplies 179.25 717 717 717 717 717

Total Supplies 16,294.00 65,176 65,176 65,176 65,176 65,176

Note 10:
PROJECTED UTILITIES EXPENSE-RETAIL STORE
Pre-
Items operating 2019 2020 2021 2022 2023 2024

Electricity 7,500.00 30,000 30,000 30,000 30,000 30,000 30,000

Total Utilities Expense 7,500.00 30,000 30,000 30,000 30,000 30,000 30,000

Note 11:
Vat on I mportation 94800
Cash 94800
 FINANCIAL PLAN 92

Note 12:
PROJECTED TRAVEL EXPENSE
Pre-
Items operating 2019 2020 2021 2022 2023
Travel expense 3000 12000 12000 12000 12000 12000
Total Travel expense 3000 12000 12000 12000 12000 12000

Note 13:

2019 2020 2021 2022 2023

Output VAT 1128038.4 1208354.73 1294389.59 1386550.13 1485272.499
Input VAT from
DM 677,814.48 711,705.20 747,290.46 784,654.99 823,887.74
Input VAT from
supplies 7,821.12 7,821.12 7,821.12 7,821.12 7,821.12

less: TOTAL input vat 685,635.60 719,526.32 755,111.58 792,476.11 831,708.86

VAT Payable 442,402.80 488,828.41 539,278.01 594,074.02 653,563.64

 FINANCIAL PLAN 92

Note 14:

QTY UNIT TOTAL COST

PRICE
MANUFACTURING EQUIPMENT
-
Conveyor Belt 2
395,000 790,000
OTHER EQUIPMENT
-
Fire Extinguisher 2
2,500 5,000
Push Cart heavy duty 1
4,799 4,799
Generator 1
16,800 16,800
TRANSPORTATION EQUIPMENT
-
Delivery Truck 1
300,000 300,000
TOTAL MACHINERIES
1,116,599
 FINANCIAL PLAN 92

Note 15:
QTY UNIT TOTAL
PRICE COST
STORE EQUIPMENT
Desktop Computer 1 18999 18999
Receipt Printer 1 3500 3500
Code Scanner 1 2000 2000
Cart 1 4799
4,799
OFFICE EQUIPMENT
-
Office Chair 10
549 5,490
Office Table 10
2,166 21,660
Desktop Computer 1
18,999 18,999
Printer 1
2,500 2,500
File Cabinet 3
499 1,497
TOTAL FURNITURES AND FIXTURES
79,444
 FINANCIAL PLAN 92

4.8 Break-even Point (BEP) what is the break-even point)

Break Even Point

2019 2020 2021 2022 2023 2024

Selling Price 10,240 10,547 10,863 11,189 11,525 16,193

Variable
Cost 6,968 6,795 6,832 6,872 6,914 7,849
Contribution
Margin 3,272 3,752 4,031 4,317 4,611 8,344

Fixed Cost 3,264,033 3,264,033 3,264,033 3,264,033 3,264,033 3,264,033

Contribution
Margin per
unit 3,272 3,752 4,031 4,317 4,611 8,344

BEP (in units) 998 870 810 756 708 391

4.9 Return on Investment (ROI)

2018 2019 2020 2021 2022

Net Income
(218,753) 360,115 699,600 1,148,367 1,591,095
Average Total Assets
14,054,434 14,094,903 14,265,005 14,418,621 7,266,136
Return on
-1.56% 2.55% 4.90% 7.96% 21.90%
Investments
 FINANCIAL PLAN 92

4.10 Financial Analysis

2019 2020 2021 2022 2023

Quick asset 7,990,204

6,513,647 6,606,406 7,138,779 7,490,804

Total Liabilities 735,352 795,898 956,575 1,088,135 1,224,344

Quick Ratio 8.86 8.30 7.46 6.88 6.53

2019 2020 2021 2022 2023

Current Assets 7,990,204

6,513,647 6,606,406 7,138,779 7,490,804
Current
1,224,344
Liabilities 735,352 795,898 956,575 1,088,135

Quick Ratio 6.53

8.86 8.30 7.46 6.88

2019 2020 2021 2022 2023

Gross Profit 3,022,427

1,266,233 1,649,633 2,070,047 2,526,680

Net Sales 9,400,320 10,069,623 10,786,580 11,554,584 12,377,271

Gross Profit
13.47% 16.38% 19.19% 21.87% 24.42%
Margin
 FINANCIAL PLAN 92

2019 2020 2021 2022 2023

Net Income 1,591,095

(218,753) 360,115 699,600 1,148,367

Net Sales 9,400,320 10,069,623 10,786,580 11,554,584 12,377,271

Net Profit Margin -2.33% 3.58% 6.49% 9.94% 12.85%

2019 2020 2021 2022 2023

Sales
9,400,320 10,069,623 10,786,580 11,554,584 12,377,271
Average Total
Assets 14,054,434 14,094,903 14,265,005 14,418,621 7,266,136
Asset turnover 66.89% 71.44% 75.62% 80.14% 170.34%

2019 2020 2021 2022 2023

Net Income
(218,753) 360,115 699,600 1,148,367 1,591,095

Ave. Total Assets

14,054,434 14,094,903 14,265,005 14,418,621 7,266,136

Return on Assets -1.56% 2.55% 4.90% 7.96% 21.90%