PARTNERS % ON TOTAL CONTRIBUTION AMOUNT

Samala, Adona 50% 200,000.00

2nd Partner 50% 200,000.00
Total 800,000.00

5.1.2 Assumptions
 Sales will increase 15% every year.
 Annual rent expenses is worth 48,000 or 8,000 per month. The lease term is 5
years. Conditions: 5 months’ deposit and 1- month advance. Stating on 2020, the
rent will increase by 5% annually according to the contract.
 Furniture & Fixture and Motor Vehicles depreciation lifespan is 5 and 7 years using
straight- line depreciation method
 Utilities expenses like electricity, water, internet and gas expenses and other
operating expense will increase by 2% every year. Direct Cost will increase at 5%
every year.
 CHAPTER 5

FINANCIAL ASPECT

5.1 Pre- Operating and Financing Needs

5.1.1 Capital Requirements

Table 18: Capital Requirements

Partners’ % on Total Contribution AMOUNT

Fandino, Rosemarie 25% 200,000.00

Ranola, Christine Joy 25% 200,000.00

Villanueva, Paula 25% 200,000.00

Cayago, Joshua 25% 200,000.00

Total 800,000.00

5.1.2 Assumptions

 Sales will increase 10% every year. Price of each product will Increase by 5% every year
 Annual rent expenses is worth 84,000 or 7,000 per month. The lease term is 5 years. Conditions:
5 months’ deposit and 1- month advance. Stating on 2020, the rent will increase by 5% annually
according to the contract
 Furniture and Fixture depreciation lifespan is 10 years using straight- line depreciation method
 Utilities expenses like electricity, water, internet and gas expenses will increase by 2% every
year.