Financial Aspect

The business will be requiring sufficient capital that will be used in starting the

business such expenses for the needed equipment, fixtures, and products to be sold.

In this kind of business, a substantial amount will be needed for the total capital

requirement that would be divided into the pre operating expenses and operating

expenses of the business

Financial Assumptions

1. There will be a 5% increase in the net sales for the next 3 years

2. The general manager will assume the responsibility of the other managers as

one entity

3. There will be 5% increase on the salary on the salary expense for the next 3

years

4. All the store supplies will be used in a year

5. Payback period is 1.16

Schedule 1

Store Furniture and Fixtures

Description Qty. Unit Price Total Cost Life Annual

Depreciation
Air Conditioner 1 ₱ 15,000 ₱ 15,000 10 years ₱ 1,500
Chairs 26 ₱ 700 ₱ 18,200 10 years ₱ 1,820
Tables 7 ₱ 2,000 ₱ 14,000 10 years ₱ 1,400
Kitchen Sink 1 ₱ 1,500 ₱ 1,500 50 years ₱ 300
Wall Clock 1 ₱ 100 ₱ 100 1 year ₱ 100
Cash Register 1 ₱ 9,000 ₱ 9,000 10 years ₱ 900
CCTV 2 ₱ 2,000 ₱ 4,000 25 years ₱ 160
Total ₱ 61,800 ₱ 6,180
Schedule 2

Store Machine and Equipment

Description Qty Unit Price Total Cost Life Annual

Depreciation
Ice Cream Machine 1 ₱ 42,000 ₱ 42,000 5 years ₱ 8,400
Food Processor 1 ₱ 3,000 ₱ 3,000 7 years ₱ 428.57
Freezer 1 ₱ 13,850 ₱ 13,850 14 years ₱ 989.28
Ice Cream Displayer 1 ₱ 54,000 ₱ 54,000 16 years ₱
3,375
Generator 1 ₱ 15,000 ₱ 15,000 20 years ₱ 750
Gas Stove 1 ₱ 3,650 ₱ 3,650 13 years ₱ 280.77
Water Dispenser 1 ₱ 5,000 ₱ 5,000 10 years ₱ 500
Refrigerator 1 ₱ 10,500 ₱ 10,500 14 years ₱ 750
Total ₱ 147,000 ₱15,473.62

Schedule 3

Office supplies

Description Qty Unit Price Annual Total Cost

Record Book 3 ₱ 39.50 ₱ 118.50

Calculator 1 ₱ 500 ₱ 500
Ball pen 2 box ₱ 720 ₱ 720
Receipt 10 pads ₱ 9.50 ₱ 95
Bond paper 3 ream short ₱ 450 ₱ 450
Stapler 2 ₱ 29.50 ₱ 59
Staple wire 6 boxes ₱ 27.25 ₱ 163.50
Folder 10 ₱ 5.50 ₱ 55
TOTAL ₱ 2,161

Schedule 4

Tools and Utensils

Description Qty Unit Price Total Cost

Crochs pans and lids 6 ₱ 1,500 ₱ 9,000

Basket 1 ₱ 1,000 ₱ 1,000
Ice Cream Scoop 6 ₱ 150 ₱ 900
Sauce Pan & Pots 2 ₱ 500 ₱ 1,000
Spatula 6 ₱ 70 ₱ 420
Tongs 2 ₱ 60 ₱ 120
Wirk WIsks 3 ₱ 65 ₱ 195
Knives Set 1 ₱ 900 ₱ 900
Chopping Boards 2 ₱ 100 ₱ 200
Peeler 2 ₱ 30 ₱ 60
Grater 1 ₱ 150 ₱ 150
Syrup Pump Dispenser 1 ₱ 6,000 ₱ 6,000
Toppings Dispenser 2 ₱ 1,000 ₱ 2,000
Measuring Cups(set) 3 ₱ 80 ₱ 240
Measuring Spoon(set) 3 ₱ 70 ₱ 210
Strainer 2 ₱ 150 ₱ 300
Wooden Laddle 4 ₱ 60 ₱ 240
Can Opener 2 ₱ 160 ₱ 320
Service Trays 3 ₱ 100 ₱ 300
Dishes Rack 1 ₱ 250 ₱ 250
Glasses 30 ₱ 30 ₱ 900
Mixing Bowls 3 ₱ 250 ₱ 750
Total ₱ 25,455

Schedule 5

Supplies Expense

Description Qty Unit Price Total Monthly Total Annual

Cost Cost
Disposable Ice Cream Cups 500 25/50pcs ₱ 1000 ₱ 12 000
Disposable Ice Cream Spoons 500 15/50pcs ₱ 600 ₱ 7 200
Cookies n’ cream 10kg 85Php/500g ₱ 6800 ₱ 81 600
Marshmallows 9.2kg 85Php/920g ₱ 3400 ₱ 40 800
Candy Sprinkles 10kg 195Php/1kg ₱ 7800 ₱ 93 600
Chocolate syrup 10kg 250Php/1kg ₱ 10000 ₱ 12000
Pretzel 5kg 65Php/500g ₱ 2600 ₱ 31 200
Total ₱ 32 200 ₱ 278, 400

Schedule 6

Utilities Expense

Utilities Expense Total Monthly Cost Total Annual Cost

Electricity Expense ₱ 4,000 ₱ 48,000
Water Expense ₱ 2,500 ₱ 30,000
Total ₱ 6, 500 ₱ 78,000
Schedule 7

Advertising Expense

Advertising materials Qty Unit Price Total Cost

Tarpaulin (4x5 ft.) 2 ₱ 550 ₱ 1,010

Flyers 50 ₱5 ₱ 250

Signage 2 ₱ 500 ₱ 1,000

Total ₱ 1,055 ₱ 2,260

Schedule 8

Taxes and Licenses

Mayors Permit ₱ 5,000.00
Barangay Clearance ₱ 500.00
Police Clearance ₱ 160.00
Business Tax ₱ 15,000.00
Sanitary Inspection Fee ₱ 90.00
Fire Inspection Fee ₱ 649.00
Garbage Fee ₱ 1,200.00
Business Plate ₱ 4,000.00
SEC Registration ₱ 1,667.99
Community Tax ₱ 1,300.00
Total ₱ 29,566.99

Note 1

Capital Financing

Kyle Emanuel J. Asido ₱ 250 000.00

Kyla Muriel C. Cosino ₱ 250 000.00

John Rickie O Niell P. Roma ₱ 250 000.00

Total ₱ 750 000.00

 Ice cream Parlor

Projected Income Statement

Year ended December 31, Year 1 to Year 3

Account Titles Schedule Year 1 Year 2 Year 3

Sales ₱

Less: cost of goods sold ₱

Gross profit ₱

Pre-operating expense ₱

Tools and Utensils 4 ₱ 25,455

Depreciation Expense for

Furniture and fixtures 1 ₱ 6,180

Depreciation Expense for

Store Machine and Equipment 2 ₱15,473.62

Salaries expense ₱

Advertising expense 7 ₱ 2,260

Office Supplies Expense 3 ₱ 2,161

Utilities expense 6 ₱ 78,000

Supplies expense 5 ₱ 278, 400

Total operating expense

Net income before tax

Less tax (30%)

Net income after tax