A) Objective of Financial Study

CHAPTER VI
Financial Aspect
A) Objective of Financial Study
Financial aspect is meant to determine the profitability of the project. It seeks how viable
is the project proposal in terms of economic measurement usually in peso.
In this aspect, we specifically determine and make analysis on the total cost of the
project, its cash requirement and other financial requirement. Financial analysis is presented
showing returns on investment, returns on asset, breakeven sales and 3-year financial
projections.
Basic Assumptions
1). One service vehicle will increase per annum.

2). Power and Water Supply will increase by 3% per annum
3). Food Supplies is assumed to increase by 3% annually.
4) Salaries and wages is assumed to increase by 5% annually.
5) Food Wares and Utensils is assumed to increase by 2% per annum
5). Marketing promotion is assumed to increase by 2% annually.

6). Sales is assumed to increase by 10% per annum.
7). Cost of Sales is assumed to increase by 6% per annum
8). Depreciation Expense is assumed to increase 67% per annum
9). Taxes and License will renew every 3 years.
10) Appliances are assumed to increase 5% per annum.
Start- up Budget for the year 2019
Service Vehicle (2) Php120,000

(See Schedule 1)
Power and Water Supply Php55,000
(See Schedule 2)
Food Supplies Ph200,000
(See schedule 3)
Appliances Php50,000
(See schedule 4)
Salary and Wages Php480,000
(See Schedule 5)
Marketing Promotion Php20,000
(See Schedule 6)
Kitchen Supplies Php 40,000
Wi-Fi Connection Php18,000
Taxes And Licenses Php 13, 850

(See Schedule 7)
Depreciation Expense Php 14, 720
(See Schedule 8)
Total Php 1,011,570
Service Vehicle (Php 60,000 X 2) PHP 120, 000
TOTAL PHP 120, 000
Power Supply (4200 x 12) Php 50,400

Water Supply (400 x 12) Php 4, 800
Total Php 55,800
FOOD SUPPLIES QUANTITY PRICE COST

Flour 6kg 100/kg 600
Eggs 5 trays 150/tray 750
Tuna 5 cans 30/can 150
Hotdog 2kg 145/kg 290
Bread 40 loaves 60/loaf 2,400
Rice Flour 2kg 140/kg 280
Ham 5 packs 60/pack 300
Chicken Breast 3kg 232/kg 696
Ground Pork 2 ½ kg 275/kg 687.50
Ground Beef 1 ½ kg 300/kg 450
Cheese 10 pack 241/pack 2,410
Potatoes 3 ½ kg 100/kg 350
Sweet Potatoes 2 ½ kg 50/kg 125
Tomatoes ½ kg 80/kg 40
Celery ½ kg 80/kg 40
Lettuce 1kg 40/kg 40
Cucumber 1kg 100/kg 100
Carrots 1kg 100/kg 100
Mushroom 3 cans 50/can 150
Bread Crumbs 1 kg 167/kg 167
Sesame seeds 3 pack 20/pack 60
Sotanghon 1 ½ kg 120/kg 180
Cooking Oil 5 liters 95/L 475
All Purpose Cream 5 packs 50/pack 250
Coconut Milk 3 cans 85/can 255
Shredded Coconut 1kg 40/kg 40
Tomato Sauce 2 liters 85/L 170
Siomai Wrappers 3 packs 21/pack 63
Soy Sauce 2 liters 47/L 94
Ketchup 1 liter 70/L 70
Mayonnaise 1 gallon 750/gallon 750
Chocolate Syrup 1liter 150/L 150
Sugar 3kg 60/kg 180
Salt 1kg 25/kg 25
Pepper 1/2 kg 30/kg 15
Garlic 1kg 90/kg 90
Onions 1kg 85/kg 85
Lemons 15 pcs. 30/pc 450
Oranges 15 pcs 25/pc 375
Apple 15 pcs. 25/pc 375
Ice Tea 10 packs 20/pack 200
Pineapple Juice 5 cans 30/can 150
TOTAL Php 14, 627.50
TOTAL (x 12) Php 175, 530
APPLIANCES ESTIMATED COST
Gas Stove 3,500
Oven Toaster 1,500
Juicer 2,200
Refrigerator 20,000
Total 27, 200
Job Position
Manager (1) Php 7,500
Assistant Manager (1) Php 6,500
Accountant (1) Php 6,250
Production Manager (1) Php 4,250
Marketing Manager (1) Php 4,250
Sales Manager (1) Php 4,250
Cook (2) Php 7,000
TOTAL Php 40, 000
TOTAL (x 12) Php 480, 000
Flyers Php 1,000

Landlines Php 1,500
Free Taste Php 5,000
Total Php 7,500
Taxes and Licenses Expense
Mayor’s Permit Php 250

(1/20 of 1% of Capital, Php 500,000)
Medical Fee Php 800
(100 per head)
Occupational Fee Php 800
(100 per head)
Tax at the end of the year Php 12,000
(Php 12,000 for Merchandising Business
whose gross income is less than 2 million)
TOTAL Php 13,850
Depreciation Expense
Service Vehicle Php 12, 000
( 60,000/10 years) x 2
Gas Stove
Php 350
(3,500/10 years) x 1
Oven Toaster
Php 150
(1,500/10 years) x 1
Juicer
Php 220
(2,200/10 years) x 1
Refrigerator
Php 2000
(20,000/ 10 years) x 1
Total Php 14,720
FINANCIAL FEASIBILITY
Our partnership’s computed initial capital investment is Php 1,200,000.
Our partnership has 8 partners and each of us contributed Php 150, 000 for
the working capital of our business.
Partner’s Name Original Investment
Bon Vincent Ventanilla Php 150, 000.00

Jasmine Iris Abril Php 150, 000.00
Bernadette Calpito Php 150, 000.00
Alysa Amon Php 150, 000.00
Mary Grace Dutong Php 150, 000.00
Erica Natavio Php 150, 000.00
Shammer Aloit Php 150, 000.00
Alexandre De Vera Php 150, 000.00
Total Php 1,200,000.00
We decided to choose partnership since it is formally agreed by the eight (8) members of the
group to collaborate and to contribute money, property, labor or skills to achieve mutually agreed
goals and objectives. Since we are eight partnerships, multiple individuals, called partners,
manage the business and share profits and responsibility for debts. Moreover, if one of the
members have a serious disease or may cause to a certain death the business nembers will decide
if the business will continue indefinitely.
Projected Sales for the first year
Projected Cost of Sales for the first year

Food Box
Statement of Comprehensive Income
For the year ended December 31, 2019
Sales P2, 835,000
Less: Cost of Sales

Beginning Inventory -
Purchases P2, 245,000
Total Goods Available for Sale P2, 245,000
Ending Inventory (P306, 500)
Total Cost of Goods Sold P1, 938,500
Gross Profit P896, 500
Less: Operating Expenses
Power and Water Supply Expense 55,000
Salary and Wages Expense 480,000
Advertising Expense 20,000
Internet Expense 18,000
Taxes and License Expense 13, 850
Depreciation Expense 14, 720 (601,570)
Net Income before Tax P294, 930
Less: Allowed Deduction P250, 000.00
Taxable Income P44, 930

Multiply by: 8%
Tax Due P3, 594.4
Net Income after Tax P291, 335.60
Net Income P295, 335.60
Food Box
Statement of Partner’s Equity
Beginning Capital P1, 200,000.00
Add: Additional Investments P0
Profit P291, 335.60
Less: Withdrawal P0
Ending Capital P1, 491, 335.60

Food Box
Statement of Financial Position
ASSETS
Current Assets
Cash P1, 491,335.60
Food Supplies P200, 000.00
Kitchen Supplies P40, 000.00
Non- Current Assets
Appliances P50, 000.00
Service Equipment P120, 000.00
Total Assets P1, 901,335.00
LIABILITIES and OWNER’S EQUITY
Partner’s Equity
Ventanilla, Capital P237, 666.95
Abril, Capital P237, 666.95
Amon, Capital P237, 666.95
Dutong, Capital P237, 666.95
Calpito, Capital P237, 666.95
Natavio, Capital P237, 666.95
Aloit, Capital P237, 666.95
De Vera, Capital P237, 666.95
Total Liabilities & Owner’s Equity P1, 901,335.00

Start- up Budget for the second year 2020
Food Supplies Ph210,000
Kitchen Supplies Php40,800
Total Php 980,880

Food Box
Sales P3, 260,250
Less: Cost of Sales

Beginning Inventory P 1,491, 335.60
Purchases P2, 226,450
Total Goods Available for Sale P2, 516,550
Ending Inventory (417,675)
Total Cost of Goods Sold P2, 098, 875
Gross Profit P1,161, 375
Power and Water Supply Expense 56,600
Depreciation Expense 22,080 (621,080)
Net Income before Tax P540, 295
Less: Allowed Deduction P250, 000
Taxable Income P290, 295
Multiply by: 8%
Tax Due P23, 223.60
Net Income after Tax P517, 071.40
Food Box
Beginning Capital P 1,491, 335.60
Profit P517, 071.40
Less: Withdrawal P0

Food Box
ASSETS
Current Assets
Cash P2, 008, 407.00
Non- Current Assets
Total Assets P2,370, 207.00
Partner’s Equity
Ventanilla, Capital P296, 275.88
Abril, Capital P296, 275.88
Amon, Capital P296, 275.88
Dutong, Capital P296, 275.88
Calpito, Capital P296, 275.88
Natavio, Capital P296, 275.88
Aloit, Capital P296, 275.88
De Vera, Capital P296, 275.88
Total Liabilities & Owner’s Equity P2,370, 207.00

Start- up Budget for the third year 2021
Food Supplies Php216,300
Kitchen Supplies Php41,616
Total Php 1, 029, 362

Food Box
Sales P3, 749,287.50
Less: Cost of Sales

Beginning Inventory P 2, 370,207.00
Purchases P2, 360,037.00
Total Goods Available for Sale P2, 684,927.00
Ending Inventory (P689, 431.75)
Total Cost of Goods Sold P1, 995, 495.25
Gross Profit P1, 753, 792.25
Power and Water Supply Expense 58, 298
Depreciation Expense 33,120 (659,426)
Net Income before Tax P1, 094, 303.25
Less: Allowed Deduction P250, 000
Taxable Income P844, 303. 25
Multiply by: 8%
Tax Due P67, 544.26
Net Income after Tax P1, 026, 758.99
Net Income P1, 026, 758.99
Food Box
Beginning Capital P 2, 370,207.00
Profit P1, 026, 758.99
Net Income P1, 026, 758.99
Less: Withdrawal P0

Food Box
ASSETS
Current Assets
Cash P3, 396, 964.99
Non- Current Assets
Total Assets P3, 766, 901.99
Partner’s Equity
Ventanilla, Capital P470, 862. 75
Abril, Capital P470, 862. 75
Amon, Capital P470, 862. 75
Dutong, Capital P470, 862. 75
Calpito, Capital P470, 862. 75
Natavio, Capital P470, 862. 75
Aloit, Capital P470, 862. 75
De Vera, Capital P470, 862. 75
Total Liabilities & Owner’s Equity P3, 766, 901.99

VI – SOCIO ECONOMIC ASPECT
The socio Economic Aspect serves as the contribution of the business that can offer to the
customers of it this includes; improvement and development of the quality of living the
customers have because Food Box will surely change the way the customers see on how they can
afford a delicious food; also it also gives a social relevance since this business is not towards for
making profit instead giving a professional services and great tasting foods like others can’t taste
before.
BENEFITS TOWARDS THE STUDENTS
The culture of the students when they are using social media will be changed when they
are used to shop Foods online in Food Box. Students who are always addicted on social media
will give them opportunity to change their perspective about how social media will help them to
be productive. With Food Box it will serve as a good hobby for students and they will be curious
about our products that will make them want to learn about our business. Because one of the
significance of Food Box to students is that this business will surely attract them when they visit
it. And from that attraction lies the opportunity for the students for them to acquire knowledge,
expand their horizons for making and managing a certain business. Moreover, this business also
gives student an idea on how a business will work. In this regard, it will give them a direction
when they will engage in a certain business.
BENEFITS TOWARDS THE SOCIETY
Our business will benefit society through merchandising foods that the customers cannot
do or do not want to produce themselves. Moreover, it encourages future businessman,
investors and entrepreneur to make a business that would surely give them profitability and by
giving them knowledge or idea on how to run your business effectively and efficiently.
BENEFITS TOWARDS THE GOVERNMENT
The significance of our business to the government is that our business will pay the right
tax computed by the government for the business to be legal. Government uses tax to support
common resources to improve the government facilities and services and to attract more
investors and produce jobs here in our country. Our business will be incorruptible when it comes
to paying for the right tax mandated by the government.
BENEFITS TOWARDS THE INDUSTRY
Our business belongs to the business and food industry in which we buy the product of
the industry to use in our business and it will helps to make their products easily to devour and to
grow our country’s economy.
BENEFITS TOWARDS THE WORKERS
The employee will be benefit by the business through providing them salary earnings.
This earnings will satisfy them if they performance paid off. And it will inspire them to work
harder for the business to gain a much higher salary.

A) Objective of Financial Study

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A) Objective of Financial Study

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CHAPTER VI

A) Objective of Financial Study

is the project proposal in terms of economic measurement usually in peso.

1). One service vehicle will increase per annum.

5) Food Wares and Utensils is assumed to increase by 2% per annum

5). Marketing promotion is assumed to increase by 2% annually.

Service Vehicle (2) Php120,000

Wi-Fi Connection Php18,000

Taxes And Licenses Php 13, 850

Power Supply (4200 x 12) Php 50,400

FOOD SUPPLIES QUANTITY PRICE COST

Flyers Php 1,000

Mayor’s Permit Php 250

Partner’s Name Original Investment

Bon Vincent Ventanilla Php 150, 000.00

Projected Cost of Sales for the first year

Sales P2, 835,000

Less: Cost of Sales

Purchases P2, 245,000

Total Goods Available for Sale P2, 245,000

Ending Inventory (P306, 500)

Total Cost of Goods Sold P1, 938,500

Gross Profit P896, 500

Less: Operating Expenses

Power and Water Supply Expense 55,000

Salary and Wages Expense 480,000

Advertising Expense 20,000

Internet Expense 18,000

Taxes and License Expense 13, 850

Depreciation Expense 14, 720 (601,570)

Net Income before Tax P294, 930

Less: Allowed Deduction P250, 000.00

Taxable Income P44, 930

Tax Due P3, 594.4

Net Income after Tax P291, 335.60

Net Income P295, 335.60

Add: Additional Investments P0

Profit P291, 335.60

Net Income P291, 335.60

Ending Capital P1, 491, 335.60

Cash P1, 491,335.60

Food Supplies P200, 000.00

Kitchen Supplies P40, 000.00

Non- Current Assets

Appliances P50, 000.00

Service Equipment P120, 000.00

Total Assets P1, 901,335.00

LIABILITIES and OWNER’S EQUITY

Ventanilla, Capital P237, 666.95

Abril, Capital P237, 666.95

Amon, Capital P237, 666.95

Dutong, Capital P237, 666.95

Calpito, Capital P237, 666.95

Natavio, Capital P237, 666.95

Aloit, Capital P237, 666.95

De Vera, Capital P237, 666.95

Total Liabilities & Owner’s Equity P1, 901,335.00

Service Vehicle (1) Php60,000

Power and Water Supply Php56,600

Food Supplies Ph210,000

Salary and Wages Php504,000

Marketing Promotion Php20,400

Kitchen Supplies Php40,800