1.

1  Financial Assumptions
v  Financial Statements Projections will be for year 2019 to 2023.
v  Estimated sales in year 1 is 2,500 units per day multiplied by 309 op
5% v  Selling price will increase by 5% yearly for the first 5 years.
5% v  Cost of sales per unit will increase by 5% yearly for raw materials.
12 12 v  Inventories will be equal to one week production of raw materials an
5% v  Salaries will increase by 5% yearly.
v  13th month pays is equal to one month salaries.
3000 v  Accountant will not receive any salary but a monthly professional fe
v  Contributions are based on the table of SSS (Social Security System)
v  Salaries of production head and workers will be charge to Production
15000 3 v  Rent is P15,000 monthly. Two months advance and one month depo
5% v  Supplies will increase by 5% yearly.
5% 3000 v  Miscellaneous Expenses is estimated to be P36,000 per year and will
5% 3000 v  Gasoline expense is estimated to be P3,000 monthly. This will increa
5% v  Utilities expense will increase by 5% yearly.
v  Depreciation for fixed assets is computed on 10 years estimated usef
v  Straigth line method of depeciation will be used.
v  Income tax rate is 30% and it is payable on the next succeeding quar
v  Vat is 12% and is payable at the end of the month.
35000 5 v  Each partner withdrew 35,000 pesos of their share in the net income
30% v  30% of sales is cash basis and the rest is on account, payable in 30 d
v  All purchases are on cash.
e for year 2019 to 2023.
per day multiplied by 309 operating days. This will increase by 5% yearly.
y for the first 5 years.
% yearly for raw materials.
roduction of raw materials and one week finshed Goods.

but a monthly professional fee of P3,000.

SSS (Social Security System), HDMF (Home Development Mutual Fund), PHIC (Philippine Health Insurance Corporation).
s will be charge to Production. (Cost of Sales).
advance and one month deposit is required.

o be P36,000 per year and will increase 5% per year.

,000 monthly. This will increase by 5% yearly

ed on 10 years estimated useful life with no salvage value.

e on the next succeeding quarter.

the month.
their share in the net income yearly.
s on account, payable in 30 days. Bad Debts is 2%.
ealth Insurance Corporation).
 ABC COMPANY
Pre-Operating Balance Sheet
As of January 1, 2019
ASSETS
Current Assets
Cash ₱ 78,833.73
Inventory 9,211.85
Supplies 6,258.93
Prepaid Rent 45,000.00
Prepaid Input Tax 45,843.99
Prepaid Expenses 26,229.00
Total Current Assets 211,377.50
Non-Current Assets
Leasehold Improvement 22,060.00
Furniture and Fixtures 21,651.79
Production Equipment 153,571.43
Office Equipment 116,696.43
Delivery Equipment 74,642.86
Total Non-Current Assets 388,622.50
Total Assets ₱ 600,000.00

TOTAL LIABILITES -
PARTNERS EQUITY
Owner A 120,000.00
Owner B 120,000.00
Owner C 120,000.00
Owner D 120,000.00
Owner E 120,000.00
Total PARTNERS EQUITY 600,000.00
Total LIABILITIES AND PARTNERS EQUITY ₱ 600,000.00

ABC COMPANY
Pre-Operating Cash Flows
As of January 1, 2019
Cash Inflows
Initial Investment by All Partners ₱ 600,000.00

Less: Cash Ouflows

Inventory 9,211.85
Supplies 6,258.93
Prepaid Rent 45,000.00
Prepaid Input Tax 45,843.99
Prepaid Expenses 26,229.00
Leasehold Improvement 22,060.00
Furniture and Fixtures 21,651.79
Production Equipment 153,571.43
Office Equipment 116,696.43
Delivery Equipment 74,642.86
Total Cash Outflows 521,166.27
Cash After Pre-Operating Cost (Beginning
Cash) ₱ 78,833.73
 As of 2019-2023
NOTES ASSETS Pre-Operating 2019 2020 2021 2022
TO FS
Current Assets
Cash ₱ 78,833.73 ₱ 235,064.75 ₱ 348,554.48 ₱ 473,593.58 ₱ 614,471.23
1 Inventory 9,211.85 20,312.12 22,394.11 24,689.51 27,220.18
2 Accounts Receivable, net 135,971.94 143,005.01 150,758.97 159,307.71
3 Supplies 6,258.93 1,642.97 1,725.12 1,811.37 1,901.94
Prepaid Rent 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00
10 Prepaid Input Tax 45,843.99 - - - -
4 Prepaid Expenses 26,229.00 - - - -
Total Current Assets 211,377.50 437,991.78 560,678.72 695,853.43 847,901.06
Non-Current Assets
5 Leasehold Improvement 22,060.00 19,854.00 17,648.00 15,442.00 13,236.00
6 Furniture and Fixtures 21,651.79 19,486.61 17,321.43 15,156.25 12,991.07
7 Production Equipment 153,571.43 138,214.29 122,857.14 107,500.00 92,142.86
8 Office Equipment 116,696.43 105,026.79 93,357.14 81,687.50 70,017.86
9 Delivery Equipment 74,642.86 67,178.57 59,714.29 52,250.00 44,785.71
Total Non-Current Assets 388,622.50 349,760.25 310,898.00 272,035.75 233,173.50
TOTAL ASSETS ₱ 600,000.00 ₱ 787,752.03 ₱ 871,576.72 ₱ 967,889.18 ₱ 1,081,074.56

Current Liabilities
16 Accounts Payable - 109,698.28 118,403.34 130,539.68 143,920.00
Contribution Payable - 4,593.20 4,822.86 5,064.00 5,317.20
Utilities Payable - 13,849.00 14,541.45 15,268.52 16,031.95
Taxes Payable - 22,704.34 26,313.08 27,534.29 29,160.26
Total Liabilities - 150,844.83 164,080.74 178,406.50 194,429.42
PARTNERS EQUITY
Owner A 120,000.00 127,381.44 141,499.20 157,896.54 177,329.03
Owner B 120,000.00 127,381.44 141,499.20 157,896.54 177,329.03
Owner C 120,000.00 127,381.44 141,499.20 157,896.54 177,329.03
Owner D 120,000.00 127,381.44 141,499.20 157,896.54 177,329.03
 Owner E 120,000.00 127,381.44 141,499.20 157,896.54 177,329.03
Total PARTNERS EQUITY 600,000.00 636,907.20 707,495.98 789,482.68 886,645.14
TOTAL LIABILITIES AND PARTNERS
EQUITY 600,000.00 ₱ 787,752.03 ₱ 871,576.72 ₱ 967,889.18 ₱ 1,081,074.56

ABC COMPANY
PROJECTED INCOME STATEMENT
For the year ended 2019-2023
Notes 2019 2020 2021 2022

11 Sales ₱ 2,378,517.86 ₱ 2,501,545.31 ₱ 2,637,183.08 ₱ 2,786,723.72

12 Cost of Goods Sold 675,610.00 731,076.52 791,617.88 857,723.75
Gross Profit 1,702,907.86 1,770,468.79 1,845,565.20 1,928,999.98
Operating Expenses 1,400,183.28 1,419,627.68 1,478,441.34 1,540,196.46
Income Before Income Tax 302,724.58 350,841.12 367,123.85 388,803.51
Income Tax 90,817.37 105,252.33 110,137.16 116,641.05
Income after Tax ₱ 211,907.20 ₱ 245,588.78 ₱ 256,986.70 ₱ 272,162.46

ABC COMPANY
PROJECTED OPERATING EXPENSES
For the year ended 2019-2023
Notes 2019 2020 2021 2022
13 Salaries Expense (Gross Pay) ₱ 739,200.00 ₱ 776,160.00 ₱ 814,968.00 ₱ 855,716.40
13 13th-Month Pay 80,980.00 85,029.00 89,280.45 93,744.47
13 Contributions Expenses (Employer's Share) 55,118.40 57,874.32 60,768.04 63,806.44
3 Supplies Expense 11,187.83 6,818.32 7,159.24 7,517.20
Rent Expense 180,000.00 180,000.00 180,000.00 180,000.00
4 Organizational Cost 26,229.00 - - -
14 Advertising Expense 7,000.00 4,000.00 4,000.00 4,000.00
15 Utilities Expenses 166,188.00 174,497.40 183,222.27 192,383.38
2 Doubtful Account Expense 2,774.94 143.53 158.24 174.46
Professional Fees 36,000.00 36,000.00 36,000.00 36,000.00
 Gasoline 36,000.00 37,800.00 39,690.00 41,674.50
Miscellaneous Expenses 36,000.00 37,800.00 39,690.00 41,674.50
17 Depreciation - Leasehold Improvement 2,206.00 2,206.00 2,206.00 2,206.00
17 Depreciation - Furniture and Fixtures 2,165.18 2,165.18 2,165.18 2,165.18
17 Depreciation - Office Equipments 11,669.64 11,669.64 11,669.64 11,669.64
17 Depreciation -Delivery Equipment 7,464.29 7,464.29 7,464.29 7,464.29

TOTAL OPERATING EXPENSES ₱ 1,400,183.28 ₱ 1,419,627.68 ₱ 1,478,441.34 ₱ 1,540,196.46

ABC COMPANY
PROJECTED STATEMENT OF CASH FLOWS
As of 2019-2023
2019 2020 2021 2022

Cash Beginning ₱ 78,833.73 ₱ 235,064.75 ₱ 348,554.48 ₱ 473,593.58

2 Add Inflows: (Cash Sales) 713,555.36 750,463.59 791,154.92 836,017.12
2 Add Inflows: (Collection on AR) 1,526,215.63 1,743,905.12 1,838,115.95 1,941,983.40
10 Add Inflows: (Output Tax) 2,378,517.86 2,501,545.31 2,637,183.08 2,786,723.72
Total Cash Available 4,697,122.57 5,230,978.78 5,615,008.44 6,038,317.83

Less Outflows:
Payment of Purchases 329,094.85 464,908.31 510,022.39 562,299.69
Input Tax 53,443.80 57,661.66 63,528.51 69,994.53
Direct Labor 232,560.00 244,188.00 256,397.40 269,217.27
Salaries 739,200.00 776,160.00 814,968.00 855,716.40
13th-Month Pay 80,980.00 85,029.00 89,280.45 93,744.47
Contributions Expense 50,525.20 57,644.66 60,526.89 63,553.24
Supplies Expense 6,571.88 6,900.47 7,245.49 7,607.77
Rent Expense 180,000.00 180,000.00 180,000.00 180,000.00
Advertising Expense 7,000.00 4,000.00 4,000.00 4,000.00
Utilities Expenses 152,339.00 173,804.95 182,495.20 191,619.96
Professional Fees 36,000.00 36,000.00 36,000.00 36,000.00
Gasoline 36,000.00 37,800.00 39,690.00 41,674.50
Miscellaneous 36,000.00 37,800.00 39,690.00 41,674.50
Partners' Withdrawal 175,000.00 175,000.00 175,000.00 175,000.00
Vat Payments 2,279,230.06 2,443,883.65 2,573,654.57 2,716,729.19
Income Tax 68,113.03 101,643.59 108,915.95 115,015.08
Total Outflows 4,462,057.82 4,882,424.29 5,141,414.86 5,423,846.60

Ending Cash Balance ₱ 235,064.75 ₱ 348,554.48 ₱ 473,593.58 ₱ 614,471.23

 ABC COMPANY
PROJECTED STATEMENT OF CHANGES IN PARTNERS EQUITY
For the year ended 2019-2023
Share in net
(for each of the partners) Partners Capital
income
Original Investment ₱ 120,000.00
Share in Year 1 Net Income (net of withdrawal) 7,381.44 42,381.44
Year 1 Ending Capital Balance ₱ 127,381.44
Share in Year 2 Net Income (net of withdrawal) 14,117.76 49,117.76
Year 2 Ending Capital Balance ₱ 141,499.20
Share in Year 3 Net Income (net of withdrawal) 16,397.34 51,397.34
Year 3 Ending Capital Balance ₱ 157,896.54
Share in Year 4 Net Income (net of withdrawal) 19,432.49 54,432.49
Year 4 Ending Capital Balance ₱ 177,329.03
Share in Year 5 Net Income (net of withdrawal) 23,326.75 58,326.75
Year 5 Ending Capital Balance ₱ 200,655.78

Note 1: Inventories
Pre-operating 2019 2020 2021 2022
Raw Materials

Cost of Materials needed next year 479,016.00 528,115.14 582,246.94 641,927.25 707,724.80
Divided by 52 52 52 52 52
Raw Materials 9,211.85 10,156.06 11,197.06 12,344.75 13,610.09

Finished Goods

Cost of Sales (Materials) next year 528,115.14 582,246.94 641,927.25 707,724.80

Divided by 52 52 52 52
Finished Goods 10,156.06 11,197.06 12,344.75 13,610.09
TOTAL INVENTORY ₱ 9,211.85 ₱ 20,312.12 ₱ 22,394.11 ₱ 24,689.51 ₱ 27,220.18
Note 2: Accounts Receivable/Doubtful Accounts
2019 2020 2021 2022

Sales ₱ 2,378,517.86 ₱ 2,501,545.31 ₱ 2,637,183.08 ₱ 2,786,723.72

Cash Sales 713,555.36 750,463.59 791,154.92 836,017.12

Sales on Account 1,664,962.50 1,751,081.72 1,846,028.16 1,950,706.61

Accounts Receivable Beginning - 138,746.88 145,923.48 153,835.68

Add: Sales on Account 1,664,962.50 1,751,081.72 1,846,028.16 1,950,706.61
Total 1,664,962.50 1,889,828.59 1,991,951.63 2,104,542.29
Less: Collection on AR 1,526,215.63 1,743,905.12 1,838,115.95 1,941,983.40
Ending Balance 138,746.88 145,923.48 153,835.68 162,558.88
Less: Allowance for Doubtful Account 2,774.94 2,918.47 3,076.71 3,251.18
Accounts Receivable, Net ₱ 135,971.94 ₱ 143,005.01 ₱ 150,758.97 ₱ 159,307.71

Allowance for Doubtful Account, beginning - 2,774.94 2,918.47 3,076.71

Allowance for Doubtful Account, ending 2,774.94 2,918.47 3,076.71 3,251.18
Doubtful Account Expense ₱ 2,774.94 ₱ 143.53 ₱ 158.24 ₱ 174.46
Note 3: Supplies
Items Unit Quantity Unit Price Price w/ VAT VAT
Ball pen
Pencil box 3 150.00 450.00 48.21
Marker box 1 650.00 650.00 69.64
Scissors pcs. 50 3.00 150.00 16.07
Paper clips pcs. 2 200.00 400.00 42.86
Stapler pcs. 50 5.00 250.00 26.79
Stapler wire pc. 2 110.00 220.00 23.57
Rubber bands pcs. 4 150.00 600.00 64.29
Calculator booklet 4 60.00 240.00 25.71
Sticky note pcs. 4 60.00 240.00 25.71
Bondpaper pcs. 4 25.00 100.00 10.71
Ink pcs. 2 80.00 160.00 17.14
Waste basket box 3 20.00 60.00 6.43
Containers pcs. 100 0.50 50.00 5.36
Boxes
Rags pc 4 120.00 480.00 51.43
First aid kit pc 2 20.00 40.00 4.29
Hand sanitizer bottle 5 50.00 250.00 26.79
Mop bottle 4 115.00 460.00 49.29
Broom pack 2 150.00 300.00 32.14
Dustpan dozen 1 120.00 120.00 12.86
Wall clock pcs. 10 25.00 250.00 26.79
Disposable plastic gloves pc 2 250.00 500.00 53.57
Face mask pc 4 60.00 240.00 25.71
Hairnet pc 10 12.00 120.00 12.86
Sponge pc 10 8.00 80.00 8.57
Diswashing liquid pc 4 65.00 260.00 27.86
Garbage bag pcs. 2 170.00 340.00 36.43
Total ₱ 7,010.00 ₱ 751.07
 2019 2020 2021 2022 2023
Beginning Supplies 6,258.93 1,642.97 1,725.12 1,811.37 1,901.94
Purchase of Supplies (Net of Vat) 6,571.88 6,900.47 7,245.49 7,607.77 7,988.16
Total Supplies 12,830.80 8,543.44 8,970.61 9,419.14 9,890.10

Supplies on Hand (Good for 3

months) 1,642.97 1,725.12 1,811.37 1,901.94 1,997.04
Supplies Expense for the year ₱ 11,187.83 ₱ 6,818.32 ₱ 7,159.24 ₱ 7,517.20 ₱ 7,893.06

Note 4: Prepaid Operating Expenses

Legal Expenses: Taxes, License, Clearance

Total
Items
Amount

Fees and Taxes(Business Permits) ₱ 1,020.00

Community TaxCertificate 150.00
Barangay Clearance 200.00
Business Tax 4,500.00
Mayor's Permit Fee 1,000.00
Sanitary Permit 1,540.00
Fire Safety Inspection Fee 200.00
Garbage Fee 500.00
Sanitary Inspection Fee 500.00
Mayor's ID 1,000.00
Regulatory Fee 1,000.00
Business Plate 175.00
Emission Test 415.00
Insurance 900.00
Official Receipt 2,529.00
Stickers 50.00
Environment Fee 3,000.00
Zoning Clearance 80.00
Certificate of Regitration 1,370.00
Right of Ways
SEC Registration 1,300.00
LTO Registration 3,500.00
BFAD Registration 500.00
BIR Registration 800.00
Total ₱ 26,229.00

Note 5: Leasehold Improvement

Item description Amount
Paint ₱ 815.00
Electric lighting fixtures. 2,385.00
Plywood 5,600.00
Lumber wood 3,960.00
Carpentry 4,800.00
Glass metal 4,500.00
Total Leasehold Improvement ₱ 22,060.00

Note 6: Furnutures and Fixtures

Items Quantity Unit Price Price w/ VAT VAT
Office table 6 2,000.00 12,000.00 1,285.71
Office chair 9 500.00 4,500.00 482.14
Monoblock 15 250.00 3,750.00 401.79
Emergency light 2 1,000.00 2,000.00 214.29
Fire extinguisher 2 1,000.00 2,000.00 214.29
Total ₱ 24,250.00 ₱ 2,598.21

Note 7: Production Equipment

Items Unit Quantity Unit Price Price w/ VAT VAT
Melting machine 2 10,600.00 21,200.00 2,271.43
Mixing machine 2 11,400.00 22,800.00 2,442.86
Molding machine 1 25,000.00 25,000.00 2,678.57
Cooling machine 1 13,000.00 13,000.00 1,392.86
Filtering machine 3 20,000.00 60,000.00 6,428.57
Packaging machine 2 15,000.00 30,000.00 3,214.29
Total ₱ 172,000.00 ₱ 18,428.57
Note 8: Office Equipment
Items Quantity Unit Price Price w/ VAT VAT
Air Condition 3 13,000.00 39,000.00 4,178.57
Computer 6 12,000.00 72,000.00 7,714.29
Printer 3 6,200.00 18,600.00 1,992.86
Telephone 1 1,100.00 1,100.00 117.86
Total ₱ 130,700.00 ₱ 14,003.57

Note 9: Delivery Equipment

Items Quantity Unit Price Price w/ VAT VAT
Convertible truck 2 1,800.00 3,600.00 385.71
L300 1 80,000.00 80,000.00 8,571.43
Total ₱ 83,600.00 ₱ 8,957.14

Note 10: Input/Output Tax and Vat Payments

Pre-operating 2019 2020 2021 2022
Output Tax:
Sales - ₱ 2,378,517.86 ₱ 2,501,545.31 ₱ 2,637,183.08 ₱ 2,786,723.72

Input Tax:
Supplies 751.07 788.63 828.06 869.46 912.93
Furniture and Fixture 2,598.21 - - - -
Production Equipment 18,428.57 - - - -
Office Equipment 14,003.57 - - - -
Delivery Vehicle 8,957.14 - - - -
Raw Materials 1,105.42 52,655.18 56,833.60 62,659.05 69,081.60
Total 45,843.99 53,443.80 57,661.66 63,528.51 69,994.53

Output Tax - 2,378,517.86 2,501,545.31 2,637,183.08 2,786,723.72

Less: Input Tax 45,843.99 53,443.80 57,661.66 63,528.51 69,994.53
 Prepaid Input Tax - 45,843.99 - - -
Vat Payments (Prepaid Input Tax) -₱ 45,843.99 ₱ 2,279,230.06 ₱ 2,443,883.65 ₱ 2,573,654.57 ₱ 2,716,729.19

Note 11: Sales

2019 2020 2021 2022
Sales in Units (Lipstick) 8,962 9,410 9,881 10,375
Selling Price Inclusive of Vat 150.00 157.50 165.38 173.64
Total Sales inclusive of Vat 1,344,300.00 1,482,090.75 1,634,005.05 1,801,490.57
Output Tax 144,032.14 158,795.44 175,071.97 193,016.85
Total Sales exclusive of Vat ₱ 1,200,267.86 ₱ 1,323,295.31 ₱ 1,458,933.08 ₱ 1,608,473.72

2019 2020 2021 2022

Sales in Units (Liptint) 10,997 11,547 12,124 12,730
Selling Price Inclusive of Vat 120.00 126.00 132.30 138.92
Total Sales inclusive of Vat 1,319,640.00 1,454,903.10 1,604,030.67 1,768,443.81
Output Tax 141,390.00 155,882.48 171,860.43 189,476.12
Total Sales exclusive of Vat ₱ 1,178,250.00 ₱ 1,299,020.63 ₱ 1,432,170.24 ₱ 1,578,967.69

Sales from Lipstick (Net of Vat) ₱ 1,200,267.86 ₱ 1,323,295.31 ₱ 1,458,933.08 ₱ 1,608,473.72

Sales from Liptint (Net of Vat) 1,178,250.00 1,178,250.00 1,178,250.00 1,178,250.00
Total Sales for the Year ₱ 2,378,517.86 ₱ 2,501,545.31 ₱ 2,637,183.08 ₱ 2,786,723.72
Note 12: Cost of Goods Sold
2019 2020 2021 2022
Units Sold in Lipstick 8,962 9,410 9,881 10,375
Cost of materials per Unit 24.00 25.20 26.46 27.78
Cost of materials Inclusive of Vat 215,088.00 237,134.52 261,440.81 288,238.49
Input Tax 23,045.14 25,407.27 28,011.52 30,882.70
Cost of materials Exclusive of Vat 192,042.86 211,727.25 233,429.29 257,355.80
Production Salaries 116,280.00 122,094.00 128,198.70 134,608.64
Depreciation Production Equipments 7,678.57 7,678.57 7,678.57 7,678.57
Total Cost of Goods Sold (Lipstick) 316,001.43 341,499.82 369,306.56 399,643.00

Cost per Unit of Lipstick

Cost of materials Exclusive of Vat 21.43 22.50 23.63 24.81
Production Salaries 12.97 12.97 12.97 12.97
Depreciation Production Equipments 0.86 0.82 0.78 0.74
Total Manufacturing Cost per unit 35.26 36.29 37.38 38.52

Cost per Batch (350 pcs Lipstick) QTY. UNIT UNIT COST TOTAL
Natural Mica Pigment pack 4.00 90.00 360.00
Organic Beeswax kilo 4.00 125.00 500.00
Organic Cocoa Butter 250 ml 4.00 160.00 640.00
Virgin Coconut Oil liter 3.00 180.00 540.00
Essential Oil 100 ml 3.00 110.00 330.00
Total 2,370.00
Cost of Raw Materials per Lipstick 6.77
Packaging 15.00
Cost per Unit of Lipstick ₱ 21.77

2019 2020 2021 2022

Units Sold is Liptint 10,997 11,547 12,124 12,730
Cost of materials per Unit 24.00 25.20 26.46 27.78
Cost of materials Inclusive of Vat 263,928.00 290,980.62 320,806.13 353,688.76
Input Tax 28,278.00 31,176.50 34,372.09 37,895.22
Cost of materials Exclusive of Vat 235,650.00 259,804.13 286,434.05 315,793.54
Production Salaries 116,280.00 122,094.00 128,198.70 134,608.64

Depreciation Production Equipments 7,678.57 7,678.57 7,678.57 7,678.57

Total Cost of Goods Sold (Liptint) 359,608.57 389,576.70 422,311.32 458,080.74

Cost per Unit of Liptint

Cost of materials Exclusive of Vat 21.43 22.50 23.63 24.81
Production Salaries 10.57 10.57 10.57 10.57

Depreciation Production Equipments 0.70 0.66 0.63 0.60

Total Manufacturing Cost per unit 32.70 33.74 34.83 35.98

Cost per Batch (350 Pcs Liptint) QTY. UNIT UNIT COST TOTAL
Organic beeswax kilo 4.00 125.00 500.00
Coconut oil liter 3.00 160.00 480.00
Natural Mica pigment pack 4.00 90.00 360.00
Shea butter kilo 4.00 190.00 760.00
Total 2,100.00
Cost of Ingredients per Liptint 6.00
Packaging 18.00
Cost per Unit of Liptint ₱ 24.00

2019 2020 2021 2022

Cost of Goods Sold for Lipstick 316,001.43 341,499.82 369,306.56 399,643.00
Cost of Goods Sold for Liptint 359,608.57 389,576.70 422,311.32 458,080.74
Total Cost of Goods Sold for the Year ₱ 675,610.00 ₱ 731,076.52 ₱ 791,617.88 ₱ 857,723.75
Note 13: Salaries, Contribution Expenses, Direct Labor

Number of Monthly Salary Employee's Share

Type of Employees Total
Emloyees (Gross Pay)
SSS PHIC
General Manager 1 18,000.00 18,000.00 - -
Marketing/Sales Supervisor 1 15,000.00 15,000.00 545.00 220.00
Cosmetologist 1 12,000.00 12,000.00 454.20 178.75
Production Supervisor 1 12,000.00 12,000.00 454.20 178.75
Marketing staff 1 9,000.00 9,000.00 327.00 137.50
Delivery man 1 7,600.00 7,600.00 290.70 137.50
Production worker 1 7,380.00 7,380.00 272.50 137.50
Total Monthly 80,980.00 2,343.60 990.00
Total Yearly ₱ 971,760.00 ₱ 28,123.20 ₱ 11,880.00

Charge to Salaries Expense 739,200.00

Charge to Direct Labor (Production

Supervisor and Worker) 232,560.00
Total ₱ 971,760.00

Note 14: Advertising

Items 2019 2020 2021 2022
Tarpaulines 3,000.00 - - -
Promo:
Promo: buy 1 get 1 2,000.00 2,000.00 2,000.00 2,000.00
Promo: buy 2 get 3 2,000.00 2,000.00 2,000.00 2,000.00
Total ₱ 7,000.00 ₱ 4,000.00 ₱ 4,000.00 ₱ 4,000.00
Note 15: Utitlities Expenses
Items 2019 2020 2021 2022
Electricity 8,235.00 8,646.75 9,079.09 9,533.04
Water 999.00 1,048.95 1,101.40 1,156.47
Telecommunication 4,615.00 4,845.75 5,088.04 5,342.44
Total Monthly 13,849.00 14,541.45 15,268.52 16,031.95
Total Yearly ₱ 166,188.00 ₱ 174,497.40 ₱ 183,222.27 ₱ 192,383.38

Note 16: Accounts Payable

2019 2020 2021 2022
Beginning Accounts Payable - 109,698.28 118,403.34 130,539.68
Raw Materials Purchases (Net of Vat) 438,793.13 473,613.37 522,158.74 575,680.01
Total 438,793.13 583,311.65 640,562.08 706,219.69
Less: Payments (9 Months) 329,094.85 464,908.31 510,022.39 562,299.69
Ending Accounts Payable ₱ 109,698.28 ₱ 118,403.34 ₱ 130,539.68 ₱ 143,920.00

Note 17: Depreciation Schedule

Estimated Useful Annual
Fixed Asset Cost Charged to:
Life Depreciation

Operating Expenses
Leasehold Improvement 22,060.00 10 2,206.00
Operating Expenses
Furniture and Fixtures 21,651.79 10 2,165.18
Cost of Goods Sold
Production Equipment 153,571.43 10 15,357.14
Operating Expenses
Office Equipment 116,696.43 10 11,669.64
Operating Expenses
Delivery Equipment 74,642.86 10 7,464.29
 Financial Ratios
Current Ratio 2019 2020 2021 2022

Current Assets 437,991.78 560,678.72 695,853.43 847,901.06

Current Liabilities 150,844.83 164,080.74 178,406.50 194,429.42

Current Ratio 3:1 4:1 4:1 5:1

The current ratio measures a company’s ability to pay off short-term liabilities with current assets

Inventory Turnover 2019 2020 2021 2022

Cost of Goods Sold 675,610.00 731,076.52 791,617.88 857,723.75

Average Inventory 14,761.98 21,353.12 23,541.81 25,954.85

Inventory Turnover 46 34 34 33
The inventory turnover ratio measures how many times a company’s inventory is sold and replaced over a given period

Asset Turnover 2019 2020 2021 2022

Sales 2,378,517.86 2,501,545.31 2,637,183.08 2,786,723.72

Total Assets 693,876.02 829,664.38 919,732.95 1,024,481.87

Asset Turnover 3.43 3.02 2.87 2.72

The asset turnover ratio measures a company’s ability to generate sales from assets

Equity Debt Ratio 2019 2020 2021 2022

Total Capital 636,907.20 707,495.98 789,482.68 886,645.14

Total Liabilites 150,844.83 164,080.74 178,406.50 194,429.42

Equity Debt Ratio 4:1 4:1 4:1 5:1

The equity to debt ratio calculates the weight of total equity against total debt and financial liabilities

Debt Ratio 2019 2020 2021 2022

Total Liabilities 150,844.83 164,080.74 178,406.50 194,429.42

Total Assets 693,876.02 829,664.38 919,732.95 1,024,481.87

Debt Ratio 21.74% 19.78% 19.40% 18.98%

The debt ratio measures the amount of a company’s assets that are provided from debt

Gross Profit Margin 2019 2020 2021 2022

Gross Profit 1,702,907.86 1,770,468.79 1,845,565.20 1,928,999.98

Sales 2,378,517.86 2,501,545.31 2,637,183.08 2,786,723.72

Gross Profit Margin 71.60% 70.78% 69.98% 69.22%

The gross margin ratio compares the gross profit of a company to its net sales to show how much profit a company makes after paying off its cost of goods s

Operating Profit Margin 2019 2020 2021 2022

Operating Income 302,724.58 350,841.12 367,123.85 388,803.51

Sales 2,378,517.86 2,501,545.31 2,637,183.08 2,786,723.72

Operating Profit Margin 12.73% 14.02% 13.92% 13.95%

The operating margin ratio compares the operating income of a company to its net sales to determine operating efficiency

Net Profit Margin 2019 2020 2021 2022

Net Income 211,907.20 245,588.78 256,986.70 272,162.46

Sales 2,378,517.86 2,501,545.31 2,637,183.08 2,786,723.72

Net Profit Margin 8.91% 9.82% 9.74% 9.77%

The net margin ratio gives the percentage of net income against total sales
Return on Assets 2019 2020 2021 2022

Net Income 211,907.20 245,588.78 256,986.70 272,162.46

Average Total Assets 693,876.02 829,664.38 919,732.95 1,024,481.87

Return on Assets 30.54% 29.60% 27.94% 26.57%

The return on assets ratio measures how efficiently a company is using its assets to generate profit

Return on Capital 2019 2020 2021 2022

Net Income 211,907.20 245,588.78 256,986.70 272,162.46

Average Capital 618,453.60 672,201.59 748,489.33 838,063.91

Return on Capital 34.26% 36.53% 34.33% 32.48%

The return on capital ratio measures how efficiently a company is using its equity to generate profit

Payback Period/Return on Investment 2019 2020 2021 2022

Net Income 211,907.20 245,588.78 256,986.70 272,162.46

Accumulated Income 211,907.20 457,495.98 714,482.68 986,645.14
Amount to be recovered: 600,000.00
Recovered in less than 2 years
 2023

₱ 775,081.31
30,651.93
168,732.69
1,997.04
45,000.00
-
-
1,021,462.97

11,030.00
10,825.89
76,785.71
58,348.21
37,321.43
194,311.25
₱ 1,215,774.22

158,832.22
5,583.06
16,833.55
31,246.48
212,495.31

200,655.78
200,655.78
200,655.78
200,655.78
 200,655.78
1,003,278.91

₱ 1,215,774.22

2023

₱ 2,951,592.28
929,932.42
2,021,659.86
1,605,040.19
416,619.67
124,985.90
₱ 291,633.77

2023
₱ 898,502.22
98,431.70
66,996.76
7,893.06
180,000.00
-
4,000.00
202,002.55
192.35
36,000.00
 43,758.23
43,758.23
2,206.00
2,165.18
11,669.64
7,464.29

₱ 1,605,040.19

2023

₱ 614,471.23
885,477.68
2,056,497.26
2,951,592.28
6,508,038.45

620,416.67
77,198.04
282,678.13
898,502.22
98,431.70
66,730.90
7,988.16
180,000.00
4,000.00
201,200.96
36,000.00
43,758.23
 43,758.23
175,000.00
2,874,394.23
122,899.69
5,732,957.15

₱ 775,081.31
Withdrawal

35,000.00

35,000.00

35,000.00

35,000.00

35,000.00

2023

796,950.19
52
15,325.97

796,950.19
52
15,325.97
₱ 30,651.93
 2023

₱ 2,951,592.28

885,477.68
2,066,114.60

162,558.88
2,066,114.60
2,228,673.48
2,056,497.26
172,176.22
3,443.52
₱ 168,732.69

3,251.18
3,443.52
₱ 192.35
 Price w/out VAT

401.79
580.36
133.93
357.14
223.21
196.43
535.71
214.29
214.29
89.29
142.86
53.57
44.64

428.57
35.71
223.21
410.71
267.86
107.14
223.21
446.43
214.29
107.14
71.43
232.14
303.57
₱ 6,258.93
 Price w/out VAT
10,714.29
4,017.86
3,348.21
1,785.71
1,785.71
₱ 21,651.79

Price w/out VAT

18,928.57
 20,357.14
22,321.43
11,607.14
53,571.43
26,785.71
₱ 153,571.43
 Price w/out VAT
34,821.43
64,285.71
16,607.14
982.14
₱ 116,696.43

Price w/out VAT

3,214.29
71,428.57
₱ 74,642.86

2023

₱ 2,951,592.28

958.58
-
-
-
-
76,239.47
77,198.04

2,951,592.28
77,198.04
 -
₱ 2,874,394.23

2023
10,893
182.33
1,986,143.35
212,801.07
₱ 1,773,342.28

2023
13,367
145.86
1,949,709.30
208,897.43
₱ 1,740,811.88

₱ 1,773,342.28
1,178,250.00
₱ 2,951,592.28
2023
10,893
29.17
317,782.94
34,048.17
283,734.76
141,339.07
7,678.57
432,752.40

26.05
12.97
0.70
39.73

2023
13,367
29.17
 389,941.86
41,779.49
348,162.38
141,339.07

7,678.57
497,180.01

26.05
10.57

0.57
37.19

2023
432,752.40
497,180.01
₱ 929,932.42
oyee's Share

HDMF
-
300.00
240.00
240.00
180.00
152.00
147.60
1,259.60
₱ 15,115.20

Contributions
Expense for the year
Total

2023
-

2,000.00
2,000.00
₱ 4,000.00
 2023
10,009.69
1,214.29
5,609.56
16,833.55
₱ 202,002.55

2023
143,920.00
635,328.89
779,248.89
620,416.67
₱ 158,832.22
2023

1,021,462.97
212,495.31

5:1

2023

929,932.42
28,936.06

32

2023

2,951,592.28
1,148,424.39

2.57

2023

1,003,278.91
212,495.31

5:1
 2023

212,495.31
1,148,424.39

18.50%

2023

2,021,659.86
2,951,592.28

68.49%
paying off its cost of goods sold

2023

416,619.67
2,951,592.28

14.12%

2023

291,633.77
2,951,592.28

9.88%
2023

291,633.77
1,148,424.39

25.39%

2023

291,633.77
944,962.03

30.86%

2023

291,633.77
1,278,278.91
TABLE 1 Historical Number of Population San Fernando
No. of Population last Population Growth
Year
year Rate (1.41%)
2014 124,311 1,753
2015 126,064 1,777
2016 127,841 1,803
2017 129,644 1,828
2018 131,472 1,854

TABLE 2 Projected Growth of Population

No. of Population last Population Growth
Year
year Rate (1.41%)
2019 133,326 1,880
2020 135,205 1,906
2021 137,112 1,933
2022 139,045 1,961
2023 141,006 1,988

TABLE 3 Target Market Percentage

using lipstick 65.00%
willing to buy new brand of
96.00%
lipstick
Target Market Percentage 62.40%

TABLE 4 Yearly Consumption Rate

Consumption Basis No. of Participants No. of Frequency
Monthly 24 12
Quarterly 113 4
Annually 26 1
TOTAL 163
Average Yearly
Consumption Rate

TABLE 5 Historical Demand of Lipstick

Year 2014 2015
Target number of population 124,311 126,064
Target Market Percentage 62.40% 62.40%
Projected Target Market 77,570 78,664
AYCR 4.70 4.70
Yearly Demand 364,532 369,672
TABLE 6 Computation for the Projected Demand
Demand form last year 2018 385,530
Demand from first year 2014 364,532

Arithmetic straight line method for Projected demand

Demand for the last year (2018) 385,530
Less:
Demand for the first year (2014) 364,532
Total Demand 20,999
Divided by:
5 Years 5
Increase per year 4,200

TABLE 7 Projected Demand

Previous year
Projected years Increase per year
demand
2019 385,530 4,200
2020 389,730 4,200
2021 393,930 4,200
2022 398,129 4,200
2023 402,329 4,200

TABLE 9 Historical Supplies of Lipstick

Competitors 2014 2015
KJM (Cheek Lip) 60,780 62,300
Kissproof 56,893 58,315
Plush Lipstick 39,290 40,272
Dear Darling 37,187 38,117
Tattoo Lip 29,754 30,498
NOVO 20,586 21,101
Total Supplies 244,490 250,602

TABLE 10 Computation for the Projected Supplies

Supply from the last year 2018 269,871
Supply from the first year 2014 244,490

Computation for the Projected Supply

Supply for 2018 269,871
Less:
Supply for 2014 244,490
Total 25,381
Divided by 5 Years 5
Increase per year 5,076

TABLE 11 Computation of Projected Supply

Projected Years Previous Year Supply Increase Per Year
2019 269,871 5,076
2020 274,947 5,076
2021 280,024 5,076
2022 285,100 5,076
2023 290,176 5,076

TABLE 12 Summary of Historical Demands and Supplies

Year Demand Supply

2014 364,532 244,490

2015 369,672 250,602
2016 374,884 256,867
2017 380,170 263,289
2018 385,530 269,871

TABLE 13 Summary of Projected Demand and Supply

Year Demand Supply
2019 389,730 274,947
2020 393,930 280,024
2021 398,129 285,100
2022 402,329 290,176
2023 406,529 295,252

TABLE 14 Competitors Market share

List of Competitors 2018 Supply % of Market share
KJM (Cheek Lip) 67,090 24.86%
Kissproof 62,799 23.27%
Plush Lipstick 43,368 16.07%
Dear Darling 41,047 15.21%
Tattoo Lip 32,843 12.17%
NOVO 22,723 8.42%
Total 269,871 100.00%

TABLE 15 Historical Estimated Sales

 Historical D-S Gap % of Marketshare
2018 104,093 8.20%

TABLE 16 Projected Volume of Production

Previous Estimated
Projected Years % Increase
Sales of the Year

2019 8,536 5%
2020 8,962 5%
2021 9,411 5%
2022 9,881 5%
2023 10,375 5%

TABLE 17 Projected Maket share

Estimated Sales of
Year Projected Supply
Lipstick for the Year
2019 274,947 8,962
2020 280,024 9,410
2021 285,100 9,881
2022 290,176 10,375
2023 295,252 10,894

Table 18 Projected Sales

Estimated Sales of
Year Selling Price
Lipstick for the Year

2019 8,962 150.00

2020 9,410 157.50
2021 9,881 165.38
2022 10,375 173.64
2023 10,894 182.33
 G.rate 1.41%

Historical number of
220,068
Population this year
126,064 97,238.5411 1.41%
127,841 100000 98,609.6046 0.0141
129,644 100,000.0000 2015 0.0141
131,472 0.0141
133,326 104,073.0000 0.0141

306659
Projected number of
34%
Population this year
135,205 0.0141
137,112 0.040001940468057 0.0141
139,045 0.0141
141,006 0.0141
142,994 0.0141

250
using 223 89%
other 200 90%
our 187 94%

YCR
288 35 6%
452 0.628 24 30%
26 0.628 21 7%
766
4.70

2016 2017 2018

127,841 129,644 131,472
62.40% 62.40% 62.40%
79,773 80,898 82,038
4.70 4.70 4.70
374,884 380,170 385,530
Projected Demand for
Lipstick
389,730
393,930
398,129
402,329
406,529

2016 2017 2018

63,857 65,454 67,090 24.86% 2700
59,773 61,267 62,799 23.27%
41,279 42,311 43,368 16.07% 2600
39,070 40,046 41,047 15.21% 2000
31,261 32,042 32,843 12.17% 1950
21,628 22,169 22,723 8.42% 1500
256,867 263,289 269,871 100.00%
Projected Supply
274,947
280,024
285,100
290,176
295,252

Consumer without
Margin of error D-S Gap
Loyalty Brand(%)

12,004 108,038 29.64%

11,907 107,162 28.99%
11,802 106,215 28.33%
11,688 105,193 27.67%
11,566 104,093 27.00%

Consumer without
Margin of error D-S Gap
Loyalty Brand(%)
11,478 103,304 26.51%
11,391 102,515 26.02%
11,303 101,727 25.55%
11,215 100,938 25.09%
11,128 100,149 24.64%
Historical Estimated
Sales
8,536

Total Expected
Estimated Increase of
Sales of Lipstick
Sales
for the Year
427 8,962 25 220,068
448 9,410
471 9,881
494 10,375
519 10,894

Total Supply Marketshare

283,910 3.16%
289,434 3.25%
294,981 3.35%
300,551 3.45%
306,146 3.56%

Total Sales for the

Year (Lipstick)

1,344,363.21
1,482,075.00
1,634,081.89
1,801,575.28
1,986,236.75
24.86
23.27
16.07
15.21
12.17
8.42
269,871
269,871
269,871
269,871
269,871
269,871
TABLE 1 Historical Number of Population
No. of Population last Population Growth
Year
year Rate (1.41%)
2014 124,311 1,753
2015 126,064 1,777
2016 127,841 1,803
2017 129,644 1,828
2018 131,472 1,854

TABLE 2 Projected Growth of Population

No. of Population last Population Growth
Year
year Rate (1.41%)
2019 133,326 1,880
2020 135,205 1,906
2021 137,112 1,933
2022 139,045 1,961
2023 141,006 1,988

TABLE 3 Target Market Percentage

using lip tint 64.00%
willing to buy new brand of lip
94.00%
tint
Target Market Percentage 60.16%

TABLE 4 Yearly Consumption Rate

Consumption Basis No. of Participants No. of Frequency
Monthly 47 12
Quarterly 103 4
Annually 11 1
TOTAL 161
Average Consumption
Rate

TABLE 5 Historical Demand of Lip tint

Year 2014 2015
Target number of population 124,311 126,064
Target Market Percentage 60.16% 60.16%
Projected Target Market 74,785 75,840
MCR 6.13 6.13
Yearly Demand 458,468 464,932
TABLE 6 Computation for the Projected Demand
Demand form last year 2018 484,877
Demand from first year 2014 458,468

Arithmetic straight line method for Projected demand

Demand for the last year (2018) 484,877
Less:
Demand for the first year (2014) 458,468
Total Demand 26,410
Divided by:
4 years 4
Increase per year 6,602

TABLE 7 Projected Demand

Previous year
Projected years Increase per year
demand
2019 484,877 6,602
2020 491,480 6,602
2021 498,082 6,602
2022 504,684 6,602
2023 511,287 6,602

TABLE 9 Historical Supplies of Lip tint

Competitors 2014 2015
KJM (Cheek Lip) 69,493 71,231
Kissproof 58,670 60,136
Plush Lipstick 51,105 52,383
Dear Darling 45,263 46,394
Tattoo Lip 42,526 43,589
NOVO 40,435 41,446
Total 307,492 315,180

TABLE 10 Computation for the Projected Supplies

Supply from the last year 2018 339,414
Supply from the first year 2014 307,492

Computation for the Projected Supply

Supply for 2018 339,414
Less:
Supply for 2014 307,492
Total 31,922
Divided by 4 4
Increase per year 7,980

TABLE 11 Computation of Projected Supply

Projected Years Previous Year Supply Increase Per Year
2019 339,414 7,980
2020 347,394 7,980
2021 355,375 7,980
2022 363,355 7,980
2023 371,336 7,980

TABLE 12 Summary of Historical Demands and Supplies

Year Demand Supply
2014 458,468 307,492
2015 464,932 315,180
2016 471,488 323,059
2017 478,136 331,136
2018 484,877 339,414

TABLE 13 Summary of Projected Demand and Supply

Year Demand Supply
2019 491,480 347,394
2020 498,082 355,375
2021 504,684 363,355
2022 511,287 371,336
2023 517,889 379,316

TABLE 14 Competitors Market share

List of Competitors 2018 Supply % of Market share
KJM (Cheek Lip) 76,708 22.60%
Kissproof 64,760 19.08%
Plush Lipstick 56,411 16.62%
Dear Darling 49,962 14.72%
Tattoo Lip 46,941 13.83%
NOVO 44,633 13.15%
Total 339,414 100.00%

TABLE 15 Historical Estimated Sales

Historical D-S Gap % of Marketshare
2018 130,917 8.00%
TABLE 16 Projected Sales
Previous year
Projected Years % Increase
Estimated Sales
2019 10,473 5%
2020 10,997 5%
2021 11,547 5%
2022 12,124 5%
2023 12,730 5%

TABLE 17 Projected Maket share

Estimated Sales for
Year Projected Supply
Liptint
2019 347,394 10,997
2020 355,375 11,547
2021 363,355 12,124
2022 371,336 12,730
2023 379,316 13,367

Table 18 Projected Sales

Estimated Sales for
Year Selling Price
Liptint
2019 10,997 120.00
2020 11,547 126.00
2021 12,124 132.30
2022 12,730 138.92
2023 13,367 145.86

0
12
0
 331,327 G.rate 1.41%

Historical number of
331,327
Population this year
126,064 97,238.5411 1.41%
127,841 100000 98,609.6046 0.0141
129,644 100,000.0000 2015 0.0141
131,472 0.0141
133,326 104,073.0000 0.0141

306659
Projected number of
34%
Population this year
135,205 0.0141
137,112 0.040001940468057 0.0141
139,045 0.0141
141,006 0.0141
142,994 0.0141

250
using 223 89%
other 200 90%
our 187 94%

YCR
564 35 13%
412 0.628 24 28%
11 0.628 21 3%
987
6.13

2016 2017 2018

127,841 129,644 131,472
60.16% 60.16% 60.16%
76,909 77,994 79,093
6.13 6.13 6.13
471,488 478,136 484,877
Projected Demand for
Lipstick
491,480
498,082
504,684
511,287
517,889

2016 2017 2018

73,011 74,837 76,708 2700
61,640 63,181 64,760
53,692 55,035 56,411 2600
47,554 48,743 49,962 2000
44,679 45,796 46,941 1950
42,482 43,544 44,633 1500
323,059 331,136 339,414
 Projected Supply
347,394
355,375
363,355
371,336
379,316

Consumer without
Margin of error D-S Gap
Loyalty Brand(%)
15,098 135,878 29.64%
14,975 134,777 28.99%
14,843 133,586 28.33%
14,700 132,300 27.67%
14,546 130,917 27.00%

Consumer without
Margin of error D-S Gap
Loyalty Brand(%)
14,409 129,677 26.38%
14,271 128,436 25.79%
14,133 127,196 25.20%
13,995 125,956 24.64%
13,857 124,716 24.08%

Estimated Sales in For

Liptint
10,473
Increase of Estimated Total Estimated
Sales Sales for Liptint
524 10,997 30.13 331,327
550 11,547
577 12,124
606 12,730
637 13,367

Total Supply Marketshare

358,391 3.07%
366,922 3.15%
375,480 3.23%
384,066 3.31%
392,683 3.40%

Total Sales for the

Year (Liptint)
1,319,641.88
1,454,905.18
1,604,032.96
1,768,446.34
1,949,712.09

12
0

0
 22.6
19.08
16.62
14.72
13.83
13.15
100
339,414
339,414
339,414
339,414
339,414
339,414