Biowaste Environmental Solutions'

PROJECT COST

Fixed Assets
Delivery Equipment 110,000.00
Land (for the facility) 4,299,166.85
Production Machine and Equipment 5,190,577.07
Tools and Equipment 38,306.63
Office Equipment 403,982.00
Company Vehicle 2,680,000.00
Furniture and Fixtures 1,014,602.00
Total Investment in Fixed Assets 13,736,634.55
Current Assets
Cash

Total Investments in Current Assets -

TOTAL ASSET 13,736,634.55

Operating Expenses:
Feasibility Study 5,000.00
Business Registration
DTI (Business Name Registration Certificate) 3,700.00
Barangay Clearance 1,000.00
Mayors' Office
Sanitary Permit Fee + 0.2% of capital for License Fee 2,900.00
Garbage Collection Fee
Occupational Tax 360.00
Occupational Police Clearance/ Health Clearance 905.00
Plumbing Inspection Fee 1,500.00
Electrical Inspection Fee 850.00
Building Permit Fee 500.00
Sign Board Permit Fee 400.00
BIR 2,000.00
Register TIN 615.00
Book 150.00
Receipts and Forms 2,980.00
Installation Cost 1,100.00
Other Expenses
Miscellaneous Expense
Housekeeping Materials 15,248.00
Working Attire 22,580.00
Office Supplies 8,255.00
 Team Building 15,000.00
Christmas Bonus
Total Pre – Operating Expenses 85,043.00

Working Capital (3 Months)

Materials
Direct 25,524.00
Indirect 450.00
Labor
Direct 74,400.00
Administrative 107,400.00
Indirect 20,106.00
Utilities
Electricity 177,985.68
Water 4,896.00
Gasoline 41,213.40
Internet 3,750.00
Rental Cost -
Advertising Expense 965.00
Total Working Capital 456,690.08
TOTAL PROJECT COST 14,278,367.63
 Biowaste Environmental Solutions'
Total PROJECT COST (php)
28,753.07
Fixed Assets 70,798.00
Land (for the the facility 4,299,166.85

Production Machine and Equipment 1,500,000

3,500,000
91,026.00

5190577.07

930000
1750000

2680000

Housekeeping
350 PPE
400 1300 5
1065 1450 5
3000 1450 5
120 35 5
170 15,00 5
225 280 5
100 OFFICE SUPPLIES
900 240
1,000 160
300 150
70 60
500 597
300 450
90 125
60 125
700 900
350 200
350 150
 160 30
60 250
70 585
4908 1,398
15248 250
electricity 350
1464.82 1375
14.65 400
2.93 250
66.65 210
37.35
54.93 8255
46.87
1.17
1689.37
8446.85
25340.55

14,057,424.07

2811484.81

2811848.07
5,600
4,390 2,950
13,200 13596

318400

15,508

6,900
11,792 16546
2,142
2,350
23,700
10,620
600,000

403982

1014602 DTI
200
500
1000
2000
6500 3700
7250
7250
175
5
1400
22580
 2019 2020 2021
Annual Production (pieces) 699,823 1,518,178 2,336,533
Prime Cost
Direct Labor 0.106 0.061 0.048
Direct Material 0.173 0.179 0.186
Total Prime Cost 0.279 0.240 0.234
Manufacturing Overhead
Depreciation
Machine and Equipment 5.001 4.611 2.996
Tools and Equipment 0.048 0.022 0.014
Indirect Material 0.003 0.003 0.003
Indirect Labor 1.276 0.735 0.573
Rental - - -
Electricity 1.017 0.469 0.305
Water 0.028 0.013 0.008
Total Manufacturing Overhead 7.372 5.852 3.899
Total Manufacturing Cost 7.651 6.093 4.133
General and Admin Cost
Depreciation:
Delivery Equipment 0.157 0.072 0.047
Furniture and Fixture 1.450 0.668 0.434
Office Equipment 0.577 0.266 0.173
Total Miscellenous 0.087 0.091 0.094
Internet 0.021 0.010 0.006
Gasoline 0.236 0.131 0.103
Electricity 0.345 0.193 0.151
Water 0.028 0.016 0.012
Administrative Salaries 0.450 0.207 0.135
Total General and Admin Cost 3.351 1.654 1.156
Selling and Distribution Cost
Advertising cost 0.017 0.008 0.005
Forms and Receipts 0.004 0.002 0.001
Total Selling and Distribution Cost 0.021 0.010 0.006
Total cost 11.024 7.756 5.295
Mark up 1.5 150% 150%

Selling Price 27.559 19.391 13.239

2022 2023
3,154,888 3,973,243
1126.08
0.041 0.037 7091.416666667 1181.902778
0.193 0.200 28,365.667
0.234 0.238 340,388.00

1181.9
2.219 1.762
0.011 0.008
0.003 0.003
0.495 0.449
- -
0.226 0.179
0.006 0.005
2.959 2.407
3.194 2.644

0.035 0.028
0.322 0.255
0.128 0.102
0.098 0.101
0.005 0.004
0.093 0.089
0.136 0.130
0.011 0.011
0.100 0.079
0.926 0.799

0.004 0.003
0.001 0.001
0.005 0.004
4.124 3.447
150% 150%

10.310 8.618
 Biowaste Environmental Solutiona'
Bad debt expense
PROJECTED INCOME STATEMENT
For the Ended December 31,2017 to December 31, 2021

2020 2021
Sales 1 19,286,408.85 29,439,303.04
Less: Cost of goods sold 2 (1,181,349.57) (1,414,380.50)
Gross Profit 18,105,059.28 28,024,922.55
Less: Operating expenses:
General and Administrative 3 (2,460,010.75) (1,659,144.68)
Selling and Distribution Expenses 4 (2,980.00) (2,980.00)
Income Before Income Taxes 15,642,068.53 26,362,797.87
Less: Income Tax Expense 4,667,620.56 7,883,839.36
Net Income 10,974,447.97 18,478,958.51

Notes to Income Statement 2020 2021

Note 1- Sales 699,823.30 1,518,178.00

Price Per unit 27.559 19.391
Total Sales 19,286,408.85 29,439,303.04

Note 2- Cost of Good sold

Factory Overhead:
Depreciation:
Tools and Equipment 38,306.63 38,306.63
Machine and Equipment 15,000.00 15,000.00
Direct Material 99,693.73 103,482.09
Direct Labor 892,800.00 1,116,000.00
Indirect Labor 85,704.00 86,484.00
Indirect Material 1,800.00 1,868.40
Rental - -
Electricity 28,461.21 29,542.74
Water 19,584.00 23,696.64
Total Manufacturing Cost 1,181,349.57 1,414,380.50
Add: Beg. working in Process 0 0
Less:End working Process 0 0
Add: Beg Finishing process 0 0
Less:End Finishing process 0 0
Cost of Good sold
1,181,349.57 1,414,380.50
Note 3- General and Adminstrative
Depreciation:
Delivery Equipment 110000 110000
 Furniture and Fixture 1,014,602.00 2,888.74
Office Equipment 11,187.81 11,187.81
Total Miscellenous 61,083.00 63,404.15
Internet 15,000.00 15,000.00
Gasoline 164,844.00 199,461.24
Electricity 711,942.72 861,450.69
Water 20,880.00 21,673.44
Administrative Salaries 311,898.40 315,200.00
Bad debt expense 38573 58,878.61
Total General and Administrative 2,460,010.75 1,659,144.68

Note 4- Selling and distribution Expenses

Advertising cost
Forms and Receipts 2,980.00 2,980.00
Total Selling and Distribution Expenses 2,980.00 2,980.00
3,860.00 3,860.00
 ental Solutiona'
xpense
ME STATEMENT
017 to December 31, 2021

2022 2023 2024

30,932,342.93 32,527,534.03 34,239,558.80
(1,648,470.53) (1,883,808.26) (2,121,062.20)
29,283,872.40 30,643,725.77 32,118,496.60

(1,891,043.82) (2,170,526.81) (2,507,012.68)

(2,980.00) (2,980.00) (2,980.00)
27,389,848.58 28,470,218.96 29,608,503.91
8,191,954.58 8,516,065.69 8,857,551.17
19,197,894.01 19,954,153.27 20,750,952.74

2022 2023 2024

2,336,533.00 3,154,887.96 3,973,242.84

13.239 10.310 8.618
30,932,342.93 32,527,534.03 34,239,558.80

38,306.63 38,306.63 38,306.63

15,000.00 15,000.00 15,000.00
107,414.41 111,496.16 115,733.01
1,339,200.00 1,562,400.00 1,785,600.00
87,271.80 88,067.48 89,312.71
1,939.40 2,013.10 2,089.59
- - -
30,665.36 31,830.64 33,040.21
28,672.93 34,694.25 41,980.04
1,648,470.53 1,883,808.26 2,121,062.20
0 0 0
0 0 0
0 0 0
0 0 0

1,648,470.53 1,883,808.26 2,121,062.20

110000 110000 110000

 2,888.74 2,888.74 2,888.74
11,187.81 11,187.81 11,187.81
65,813.51 68,314.43 70,910.37
15,000.00 15,000.00 15,000.00
241,348.10 292,031.20 353,357.75
1,042,355.34 1,261,249.96 1,526,112.45
22,497.03 23,351.92 24,239.29
318,088.60 321,447.69 324,837.15
61,864.69 65,055.07 68,479.12
1,891,043.82 2,170,526.81 2,507,012.68

2,980.00 2,980.00 2,980.00

2,980.00 2,980.00 2,980.00
3,860.00 3,860.00 3,860.00
 Kwayan Eco-Packaging Enterprise
PROJECTED INCOME STATEMENT
For the Ended December 31,2017

Notes
Sales 1 Php 19,286,408.85
Less: Cost of goods sold 2 Php (1,181,349.57)
Gross Profit Php 18,105,059.28
Less: Operating expenses:
General and Administrative 3 Php (2,460,010.75)
Selling and Distribution Expenses 4 Php (2,980.00)
Less Income Tax Expense Php (4,667,620.56)
Net income Php 10,974,447.97
 Biowaste Environmental Solutions'
PROJECTED STATEMENT OF CASH FLOWS
For the Ended December 31,2017 to December 31, 2021

Investing Cashflow 2017 2018

Purchase of manufacturing machines, tools and equipment cost -3,500,000.00
Purchase of tools and equipment -38,306.63
purchase of furniture and fixtures -1,014,602.00
purchase of delivery equipment -110,000.00
purchase of office equipment -403,982.00
Total -5,066,890.63
Financing Cashflow
Cash Investment 14,278,367.63
Less: Cash Beginning
Total 14,278,367.63
Operating Cashflow
Net Income 10,974,447.97 18,478,958.51
Add: Depreciation Expense 37,724.08 37,724.08
Bad debt expense 38,572.82 58,878.61
Less: Decrease/Increase in accounts receivable 3,857,281.77 2,030,578.84
Total 7,193,463.10 16,544,982.35
Increase or Decrease in Cash 16,404,940.10 16,544,982.35
Note 5 -Cash
Cash beginning 50,000.00 16,454,940.10
Increase of Decrease in Cash 16,404,940.10 16,544,982.35
Cash ending 16,454,940.10 32,999,922.45
s' Kwayan Eco-Packaging Enterprise
FLOWS PROJECTED STATEMENT OF CASH FLOWS
ber 31, 2021 For the Ended December 31,2017

2019 2020 2021

Cash Flow from Operating Activities
Net Income of the Year
Add: Total Depreciation
Increases in cash
Add:Cash Beginning
Cash at the end of the year

19,197,894.01 19,954,153.27 20,750,952.74

37,724.08 37,724.08 37,724.08
61,864.69 65,055.07 68,479.12
298,607.98 319,038.22 342,404.95
18,998,874.80 19,737,894.20 20,514,750.98
18,998,874.80 19,737,894.20 20,514,750.98

32,999,922.45 51,998,797.25 71,736,691.45

18,998,874.80 19,737,894.20 20,514,750.98
51,998,797.25 71,736,691.45 92,251,442.43
ckaging Enterprise
MENT OF CASH FLOWS
ecember 31,2017

ating Activities
###
37,724.08
###
50,000.00
###
 Biowaste
PROJEC
Year Ended Decem

Assets 2017

Current Assets
Cash 5 16,454,940.10
Accounts receivable - net 6 3,818,708.95
Less: Depreciation
Production Machine and Equipment 5,190,577.07
Less: Depreciation 15,000.00 5,175,577.07
Office Equipment 403,982.00
Less: Depreciation 11,187.81 392,794.19
Tools and Equipment 38,306.63
Less: Depreciation 1,314.20 36,992.43
Delivery Equipment 110,000.00
Less: Depreciation 7,333.33 102,666.67
Furniture and Fixtures 1,014,602.00
Less: Depreciation 2,888.74 1,011,713.26
Total Assets 26,993,392.67

Liabilties and Owners Equity

Capital Beginning of 2016 14,278,367.63
Net income of 2017 10,974,447.97
Total Liablities and Owners Equity 25,252,815.60

Note 6 - Accounts receivable

Accounts receivable beginning -
Credit Sales 3,857,281.77
Less: Doubtful accounts beginning -
bad debts expense (1%) 38,572.82
Doubtful accounts ending 38,572.82
Collection from customer -
Total 3,818,708.95
 Biowaste Environmental Solutions'
PROJECTED BALANCE SHEET
Year Ended December 31, 2017 to December 31, 2021

2018 2019

32,999,922.45 51,998,797.25
5,790,409.19 6,027,152.48

5,190,577.07 5,190,577.07 5,190,577.07

30,000.00 5,160,577.07 45,000.00 5,145,577.07 60,000.00
63,984.00 63,984.00 63,984.00
22,375.62 41,608.38 33,563.43 30,420.57 44,751.24
6,582.50 6,582.50 6,582.50
2,628.40 3,954.10 3,942.60 2,639.90 5,256.80
110,000.00 110,000.00 110,000.00
14,666.66 95,333.34 21,999.99 88,000.01 29,333.32
21,367.00 21,367.00 21,367.00
5,777.48 15,589.52 8,666.22 12,700.78 11,554.96
44,107,394.05 63,305,288.06

25,252,815.60 43,731,774.11
18,478,958.51 19,197,894.01
43,731,774.11 62,929,668.12

3,857,281.77 5,887,860.61
5,887,860.61 6,186,468.59
38,572.82 97,451.42
58,878.61 61,864.69
97,451.42 159,316.11
3,857,281.77 5,887,860.61
- 5,790,409.19 6,027,152.48
 Biow
PR
Ye

2020 2021 Assets

Current Assets
71,736,691.45 92,251,442.43 Cash
6,281,135.63 6,555,061.46 Accounts receivable - net

5,190,577.07 Less: Depreciation

5,130,577.07 75,000.00 5,115,577.07 Production Machine and Equi
63,984.00 Less: Depreciation
19,232.76 55,939.05 8,044.95 Office Equipment
6,582.50 Less: Depreciation
1,325.70 6,571.00 11.50 Tools and Equipment
110,000.00 Less: Depreciation
80,666.68 36,666.65 73,333.35 Delivery Equipment
21,367.00 Less: Depreciation
9,812.04 14,443.70 6,923.30 Furniture and Fixtures
83,259,441.33 104,010,394.07 Less: Depreciation
Total Assets

62,929,668.12 82,883,821.39 Total Liablities and Owners Equity

19,954,153.27 20,750,952.74
82,883,821.39 103,634,774.13

6,186,468.59 6,505,506.81
6,505,506.81 6,847,911.76
159,316.11 224,371.18
65,055.07 68,479.12
224,371.18 292,850.30
6,186,468.59 6,505,506.81
6,281,135.63 6,555,061.46
 Biowaste Environmental Solutions'
PROJECTED BALANCE SHEET
Year Ended December 31, 2017

Assets
Notes
Current Assets
Php 16,454,940.10
Accounts receivable - net Php 3,818,708.95

Less: Depreciation
Production Machine and Equipment Php 180,000.00
Less: Depreciation Php 15,000.00 Php 165,000.00
Office Equipment Php 403,982.00
Less: Depreciation Php 11,187.81 Php 392,794.19
Tools and Equipment Php 38,306.63
Less: Depreciation Php 1,314.20 Php 36,992.43
Delivery Equipment Php 110,000.00
Less: Depreciation Php 7,333.33 Php 102,666.67
Furniture and Fixtures Php1,014,602.00
Less: Depreciation Php 2,888.74 Php 1,011,713.26
otal Assets Php 21,982,815.60

es and Owners Equity Php 25,252,815.60

Test of Operating Efficiency and Profitability

Gross Profit Margin

Gross Profit Margin 2017 2018 2019

Gross Profit 18,105,059.28 28,024,922.55 29,283,872.40
Sales 19,286,408.85 29,439,303.04 30,932,342.93
Gross Profit Margin 94% 95% 95%

Gross Profit Margin = Gross Profit/Sales

Net Profit Margin

Net Profit Margin 2017 2018 2019

Net Income 10,974,447.97 18,478,958.51 19,197,894.01
Sales 19,286,408.85 29,439,303.04 30,932,342.93
Net Profit Margin 57% 63% 62%

Net Profit Margin= Net Income/ Sales

Return on Investment

Return on Investment

ROI 2017 2018 2019

Net Income 10,974,447.97 18,478,958.51 19,197,894.01
Total Assets 26,993,392.67 44,107,394.05 63,305,288.06
ROI (%) 41% 42% 30%

ROI = Net Income/ Total Assets

Rate of Return on Capital

Rate of Return on Capital

Rate of Return 2017

Ave. Net Income 17,871,281.30
Ave. Capital Investment 14,278,367.63
Rate of Return (%) 125%

Rate of Return on Capital = Ave. Net Income/ Ave. Capital Investment

Gross Profit Margin

 Payback Period

Year Cash Flow Cumulative Cash Flow

Initial Investment ### (14,278,367.63)
2017 7,193,463.10 -7,084,904.53
2018 16,544,982.35 9,460,077.83
2019 18,998,874.80 28,458,952.62
2020 19,737,894.20 48,196,846.82
2021 20,514,750.98 68,711,597.81
Total investment: 721,208.82
Cumulatative Cash Inflow: 873,533.03
Payback Period: 2+[285,145.67/380,263.85] = 2.75 years
 2020 2021
30,643,725.77 32,118,496.60
32,527,534.03 34,239,558.80
94% 94%

2020 2021
19,954,153.27 20,750,952.74
32,527,534.03 34,239,558.80
61% 61%

2020 2021
19,954,153.27 20,750,952.74
83,259,441.33 ###
24% 20%

`
 Breakeven Point
Break-Even
Year Selling Price Variable Cost Fixed Cost in units
2017 2.390 1.839 ### 4,015,774
2018 2.404 1.849 ### 2,510,776
2019 2.418 1.860 ### 2,913,396
2020 2.434 1.872 ### 3,391,225
2021 2.453 1.887 ### 3,964,864