Assumptions:

1 The growth rate for the forecasted sales (Year 2020 and 2021) is computed using simple moving ave

The average change in sales in percentage is used to get the growth rate.

2 An increase of 11% on Operating Expenses and 34% Current Assets is projected every year.

3 A 11% increase in net income is projected for 2020 and 2021.

4 Forecasted Accounts Receivable is the result of Accounts Receivable Days divided by 365 days mul

5 Forecasted Inventory is the result of Inventory Days divided by 365 days multiplied by Cost of Sales.

6 Forecasted Accounts Payable is the result of Accounts Payable Days divided by 365 days multiplied
7 No additional purchase of noncurrent assets for 2020. The property,plant and equipment is net of acc
ed using simple moving average with two periods interval.

rojected every year.

ys divided by 365 days multiplied by sales. Forecast AR = (Receivable Days/365 days ) x Sales (for forecasted year)

multiplied by Cost of Sales. Forecast Inventory = (Inventory Days/365 days ) x Cost of Sales (for forecasted year); wh

ded by 365 days multiplied by sales. Forecast AP = (Payable Days/365 days ) x Sales (for forecasted year); where A
and equipment is net of accumulated depreciation for 2020 and 2021.
 (for forecasted year); where AR Days = (AR/Sales) x 365 days

r forecasted year); where Inventory Days = (Inventory/Cost of Sales) x 365 days

casted year); where AP Days = (AP/Sales) x 365 days

 KAYAMANAN NI JUAN TRADING
Blk. 18, Lot 9, Purok Issabella Homes Subd., Brgy. San Isidro, General Santos City

FORECASTED FINANCIAL STATEMENT

For Year 2020 and 2021
(Based on comparative figures from 2017 to 2019)

Growth Rate 4.0629% Growth Rate

Forecast
Income Statement Increase 2020 Increase
Sales growth rate % of sales % of sales
Sales 100% 17,150 439,265.03 100% 8,923
Cost of Sales 46% 7,962 203,924 46% 4,143
Gross Profit 54% 9,188 235,341 54% 4,781
Selling, General & Admin 38% 6,574 168,372 38% 3,420
Depreciation 5% - 19,178 4% 0
Income from Operations (EBIT) 11% 2,615 47,792 11% 1,360
Interest Expense
Income before taxes (EBT) 11% 2,615 47,792 11% 1,360
Taxes
Net Income 11% 2,615 47,792 11% 1,360

Balance Sheet % of sales Increase 2020 Increase

Cash 11% 1,885.66 48,298 11% 981
Accounts Receivable 7% 1,196.52 30,647 7% 623
Inventories 15% 2,582 66,124 15% 1,343
Tax Credit 1% 121 3,106 1% 63
Total Current Assets 34% 5,785 148,174 34% 3,010
Property, Plant & Equipment
Less: Accumulated Depreciation
Net PP&E 9% 1,519.52 38,920 9% 791
Total Assets 43% 187,094 43%

Accounts Payable 11,867.33

SSS, PHIC, HDMF Payable 400
Withholding Tax Payable -
Income Tax Payable 400
Accrued Taxes Payable 3,949
Total Liabilities 16,616
Antido, Bengie M. Capital 163,635.00
Total Liabilities & Equity 180,251.33

6,842.28
Santos City

2.0314%
Forecast
2021

448,188
208,066
240,122
171,792
19,178
49,152

49,152

49,152

2021
49,279 A/R Days A/R 2020 A/R 2021
31,269 25.47 30,647 31,269
67,467 Inventory Days
3,169 118.35 66,124 67,467
151,184

39,710
190,894
Accounts Payable Days
12,108 21.24 21.24115900021
400
-
400
3,949
16,857
163,635.00
180,492.41

10,401.90
Computation for forecasted sale:
Change in Sales 2018
Sales Amount %
2015 169,497
2016 489,313 319,816
2017 399,345 - 89,968 -18%
2018 423,837 24,492 6%
2019 422,115 - 1,722
2020 439,265 17,150
2021 457,112 17,847

Total -12%
Growth Rate -6%

Additional Funds Needed 2020 2021

Required change in asset 5,785 3,010
Increase in payables 28,549 1,249
Funds obtained as new RE based on forecasted sales 17,571 8,964
- 40,335 - 7,203

- 11,786 - 5,954
 2019 2020 2021
%

6%
-0.406288% 4.06288% *ignore negative sign
4.06288% 4.06288%

6% 8% 4%
3% 4.063% 2.0314%

change in sales x % of assets previous yr

change in sales x % of liab previous yr
forecasted sales x PMR sa forecasted
-
egative sign

Assumption on accounts payable: Using the vertical analysis, the average of liabilities for th
alysis, the average of liabilities for three years is 14% then multiplied with forecasted COS of 2019.