X.

Financial Plan

Major Assumptions:

1. Dazzling Purse is using 240 operating days a year.

2. March 2017 is the official start our operation.

3. Investment cost needed a capital of P121,146.75

4. The first capital is coming from the owner’s personal saving and resources

which will be P21,146.75.

5. Payroll for the workers will be on 15th and 30th day of the month.

6. Salaries and wages will increase at 10% on its 2nd until 3rd year.

7. An increase of 10% in raw materials is expected starting on the 2 nd year.

8. Rent and Utilities expense is expected to increase 5% starting on the 2 nd year.

9. Selling price per unit is assumed to increase by 10% every starting on the 2 nd

year.

10. Income tax rate is 30%.

11. Inventory is equal to monthly purchases of raw materials.

12. Permits and Licenses are required to be paid every year of operation

mandated by the local government.

13. A projected 10% increase in sales on the 2 nd year is also anticipated due to

its market and product positioning.