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Script Financial
Script Financial
As shown in the screen, is the breakdown of all the necessary items needed for the
proposed project to start its operations. This amounts are based from what the
researchers have canvassed from respective suppliers they foresee to have
transactions with, and we have the estimated project cost for the proposed project
(POINT on the amount)
As discussed by the researchers, they proposed that the implementer invest an amount
of 300,000 and loan from a private institution an amount of 600,000, to meet the cost
needed for the proposed project to start its operations.
Assumptions:
There is a 20% increase per year in the number of all direct materials used to produce
the proposed product, this based on the increase in the capacity of the business which
increases its production every year for 20% also.
Financial Statements:
Income Statement – from the first year of operations until the fifth year, the proposed
business is at profit. As the number of its production is increasing, the business is
getting closer to its main goal of gaining the acceptance of the market.
Cash Flows – for the first year of operations, all the pre- operating activities are paid
and expensed, from the purchase of all equipment, supplies, tools, rent and payments
of registering the business to different govnt. agencies. For the next year, the cash
balance doubled. (reason is some supplies are bought every after two years and no
additional equipment/tools were purchased)
Balance Sheet -