FINANCIAL DOCUMENT

Financial Assumptions:

1. The initial capital outlays of Alberto’s Pizza is P 1,500,000.00.

2. Service Revenue will increase by 5% from second year to fifth year.

3. Purchases will increase by 5% from second year to fifth year.

4. Inventories will increase in 3% from second year to fifth year.

5. Depreciation to depreciable assets computed through straight line method by

its respective estimated life.

6. Repairs and maintenance is 5% of the equipment’s value and wil increase by 5% from
second year to fifth year.

7. Salaries will increase by 3% from second year to fifth year.

8. 13th month pay is total salaries in year divided by 12.

9. Utilities expense will increase by 3% from second year to fifth year.

10. Taxes are paid every quarter.

11. The business operates 365 days in a year already including the 48 Sundays there are in a
year.

12. Rent expense is P4,000.00 a month.

13. Electricity expenses shall increase by 10% annually and the water expense by 5%.

14. Annual Owner’s withdrawal is 10% of the Net Income.