5.

0 Financial Aspect

This chapter talks about the financing and financial aspect of the business

plan. It specifies the project costs, source of financing, major assumptions used

and projected financial statements analysis. It gives information on the

profitability and stability of the project. Furthermore, financial statements are

prepared to meet external reporting obligations and also for the decision making

purposes, but the information provided in the financial statements is not an end

in itself as no meaningful conclusion can be drawn from the statements alone.

However, the information provided in the financial statements is of immense

use in making decisions through analysis and interpretation of financial

statements. Also, it identifies the financial strengths and weaknesses of the

balance sheet and the profit and loss account.

5.1 Capital Requirements and Industry

5.1.1 Pre-Operating Expenses

Table 1

No. Procedure Time to Complete Associated Costs

Verify and reserve the

company name with the
1 1 day PHP 40
Securities and Exchange
Commission (SEC)
Deposit paid-up capital in the
Authorized Agent Bank (AAB)
2 1 day No cost
and obtain bank certificate of
deposit
Notarize articles of
3 incorporation and treasurer's 1 day PHP 500
affidavit at the notary
Register the company with the PHP 2,665 (PHP 1,667.99 filing fee equivalent
SEC and receive pre- to 1/5 of 1% of the authorized capital stock or
4 3 days
registered Taxpayer the subscription price of the subscribed capital
Indentification Number (TIN) stock, whichever is higher but not less than
 PHP 1,000 + PHP 16.68 legal research fee
(LRF) equivalent to 1% of filing fee but not
less than PHP 10 + PHP 500 By-laws + PHP
150 for registration of stock and transfer book
(STB) required for new corporations + PHP
320 STB + PHP 10 registration for SEC
bulletin)
5 Obtain Baranggay clearance 1 day PHP 500 (between PHP 0 - PHP 600)
After issuance of the SEC
certificate of incoporation, pay
the annual community tax and
6 1 day PHP 500
obtain the community tax
certificate (CTC) from the City
Treasurer's Office (CTO)
Obtain the business permit
application form from the
7 1 day No cost
Business Permits and
Licesing Office (BPLO)
PHP 4,939 (PHP 2,084.98 business tax (25%
of 1% of paid-up capital) + PHP 200 mayor’s
permit + PHP 150 sanitary inspection fee +
Obtain the business permit to
8 6 days PHP 50 signboard fee + PHP 250 business
operate from the BPLO
plate + PHP 100 QCBRB + PHP 545 zoning
clearance + PHP 1,300 garbage fee+ PHP
259.5 FSIC (10% of all regulatory fees))
Buy special books of account
9 1 day PHP 400
at bookstore
Apply for Certificate of
Registration (COR) and TIN at PHP 115 (PHP 1,000 certification fee + PHP
10 2 days
the bureau of Internal 15 documentary stamp tax)
Revenue (BIR)
Pay the registration fee and
11 documenatary stamp taxes 1 day 3 days
(DST) at the AAB
Obtain the authority to print
12 receipts and invoices from the 1 day No cost
BIR
Print receipts and invoices at
13 7 days PHP 3500
the print shops
Have books of accounts and
14 Printer's Certificate of Delivery 1 day No cost
(PCD) stamped by the BIR
Register with the Social
15 7 days No cost
Security System (SSS)
Register with the Philippine
16 Health Insurance Company 1 day No cost
(PhilHealth)
TOTAL 17,829.00
approx 20,000

5.1.2 Office Supplies

The proponents will buy the supplies with the cheapest price but with a good
quality to produce and maintain a customer-friendly price with a good quality

product.

Table 2

Items Unit cost Quantity Total Cost

Bond paper PHP 162.00 0.5 PHP 81.00
Ballpen PHP 132.00 1 PHP 132.00
Stapler & Stapler
PHP 150.00 1 PHP 150.00
wire set
TOTAL PHP 363.00

5.1.3 Fixed Asset

Table 3

PRODUCTION EQUIPMENT
ITEM SOURCE QUANTITY COST TOTAL
Sewing Machine (Singer
1408 Electric Sewing Lazada 4 9,000.00 36,000.00
Machine with table extender
-
Total 36,000.00

Table 4

OFFICE EQUIPMENT

ITEM SOURCE QUANTITY COST TOTAL

Laptop (Nextbook Flexx9
8.9" Intel Atom Quad-core Shopee 4 7,000.00 28,000.00
Blue Windows 10)
Printer Octagon 1 3,000.00 3,000.00
-
Total 31,000.00

Table 5
 FURNITURE AND FIXTURE
QUANTIT
ITEM SOURCE COST TOTAL
Y
Office Table Furniture Manila 1 1,600.00 1,600.00
5JM Modular
Cubicle type Table Partition & Office 2 3,000.00 6,000.00
Furnishing
Book Shelves (COD Bookcase
Storage Bookshelf with 9 Book Shopee 1 500.00 500.00
shelves
Americana Chairs Uratex 15 400.00 6,000.00
Airconditioner (Eureka EWA
0.6HP Window type 1 8,000.00 8,000.00
AirConditioner)
Shelves for storage (Boltless
Collapsible Rack 5 Layers Shopee 1 2,350.00 2,350.00
Bookshelf Kitchen Organi)
TOTAL 24,450.00

5.1.4 Inventories

5.1.4.1 Raw Materials Needed

The following is the list of all items needed to produce Love for Babies

LB bags.

Table 6

DIRECT MATERIAL COST PER UNIT

ITEM PRICE QUANTITY UNIT COST
Small Zipper 5.00 2 10.00
Large Zipper 6.00 3 18.00
Garter 10.00 1 10.00
Foam 127.00 0.3 38.10
Strap 12.00 2 24.00
Buckle 40.00 0.3 12.00
Cloth 60.00 2 120.00
-
DIRECT MATERIAL COST
PER UNIT 232.10

Table 7
 LABOR COST PER UNIT
NO. OF WORKING LABOR
WORKERS DAILY RATE DAYS COST
Tailor 180.00 22 3,960.00
Tailor 180.00 22 3,960.00
Tailor 180.00 22 3,960.00
Tailor 180.00 22 3,960.00
Total: 15,840.00
Div. by: Approx No. of Monthly
Production 176
DIRECT LABOR COST PER
UNIT 90.00

Table 8

MANUFACTURING OVERHEAD
A) INDIRECT MATERIAL
ITEM PRICE QPS UNIT COST
Needles 52 100 0.52
Thread 95 100 0.95

INDIRECT MATERIAL COST PER UNIT 1.47

B) INDIRECT LABOR
NO. OF WORKING LABOR
WORKERS DAILY RATE DAYS COST
Maintenance-Production
PHP 20.00/hr(2)*10 days 40.00 10 400.00
-
Total: 400.00
Div. by: Approx No. of Monthly Production 176
INDIRECT LABOR COST PER UNIT 2.27

C) OVERHEAD
Electric Bill 1,000.00
Water Bill 10.00
Rent 8,500.00
Total: 9,510.00
Div. by: Approx No. of Monthly Production 176
OVERHEAD COST PER UNIT 54.03409091

MANUFACTURING OVERHEAD COST PER UNIT:

57.78
(Indirect Material + Indirect Labor + Overhead)
 The total cost of materials to create Love for Babies LB bag is PHP 379.88.

The proponents also get the direct labor of PHP 180.00 for daily rate multiplied

by 22 working days, then multiply it again to the number of tailors hired which is

4. This results to PHP 15,840.00, which is then divided by the approximate

number produced in a month, which is 176 (4 tailors producing 2 bags in a day

for 22 days in a month). This equals to PHP 90.00 direct labor cost per unit.

Table 9

MANUFACTURING COST PER UNIT

Direct Material 232.10
Direct Labor 90.00
Manufacturing Overhead 57.78
MANUFACTURING
COST PER UNIT 379.88

SELLING PRICE
Manufacturing Cost per Unit 379.88
Mark up : 90% 341.8891364
SELLING PRICE 721.77

The proponents also determined the manufacturing cost per unit by adding

the indirect materials cost per unit plus indirect labor cost per unit plus overhead

cost, which equaled to PHP 379.88.

The proponents agreed to settle for a 90% mark up to get the selling price of

the product in order to get back the expenses and capitals used in the

establishing of the business. The selling price amounted to PHP 721.77 fits the

range bracket of the price the target customers are willing to pay.
5.1.5 Capital Contributions

Table 10

Particulars Cost
Pre-operating Expenses PHP 20,000.00
FIxed Cost PHP 1,103,468.35
Inventories PHP 96,489.00
Supplies PHP 3,356.00
PPE PHP 91,450.00
TOTAL PHP 1,314,763.35

Partners’ Agreed Capital

Table 11

Partners Contributions
Ma. Khrstlle C Aguto PHP 60,000.00
Denise Erika Bantayan PHP 60,000.00
Kristine T Chan PHP 60,000.00
Mary Danielle C Damian PHP 60,000.00
Rogielene A Dela Cruz PHP 60,000.00
Camille Anne T Escobar PHP 60,000.00
Angela Kristine G Resente PHP 60,000.00
Tesslene Claire V Santos PHP 60,000.00
Bianca Ces Rianne O Sesperes PHP 60,000.00
TOTAL PARTNERS’ CONTRIBUTION PHP 540,000.00

The proponents initial capital contribution will be PHP 540,000.00 which will

be allotted and used to all the cost needed to put up the business.

5.2 Financial Assumptions

Table 12

Major Assumptions:

Capital investment is P540,000 broken down into the ff.

P540,000 invested equally by 9 partners.
Income is distributable equally.

Tax rate is 30% same with current Philippine corporate tax rate.

Utilities expense increases 5% annually.

Selling price of the product is computed using cost plus method. 30% is added to the
cost to compute SRP.

The selling price remains the same throughout the 5-year projection.

(PPE) Property, Plant and Equipment's useful life is 5 years.

Office supplies expense increases 5% annually.

Taxes and Licenses renewing process: 3% quarterly percentage tax, 0.5% annual
local business tax

Advertising Expense, P _________

5.3 Projected Financial Statement

5.3.1 Balance sheet

Table 13

Love for Babies LB Bag

Statement of Financial Position

As of the 5 years ending December 31, 2023

ACCOUNT 2019 2020 2021 2022 2023

ASSETS

Current Assets

Cash 1,472,325.26 1,517,569.82 1,717,774.00 2,181,521.13 2,180,650.06

Finished Goods
(ending) 9,572.90 12,991.79 17,018.48 22,336.76 26,743.33
Total Current
Assets: 1,481,898.16 1,530,561.61 1,734,792.48 2,203,857.88 2,207,393.39

Noncurrent Assets
Furniture and
Fixture 24,450.00 24,450.00 24,450.00 24,450.00 24,450.00
Accum. Dep'n -
Furniture and
Fixture (4,890.00) (9,780.00) (14,670.00) (19,560.00) (24,450.00)

Office Equipment 31,000.00 31,000.00 31,000.00 31,000.00 31,000.00

 Accum. Dep'n -
Office Equipment (6,200.00) (12,400.00) (18,600.00) (24,800.00) (31,000.00)
Production
Equipment 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Accum. Dep'n -
Production
Equipment (7,200.00) (14,400.00) (21,600.00) (28,800.00) (36,000.00)
Total Noncurrent
Assets 73,160.00 54,870.00 36,580.00 18,290.00 -

TOTAL ASSETS: 1,555,058.16 1,585,431.61 1,771,372.48 2,222,147.88 2,207,393.39

LIABILITIES
AND
PARTNERS'
EQUITY

Liablities

Salaries Payable 552,805.38 552,805.38 552,805.38 552,805.38 552,805.38

13th Month Pay
Payable 57,947.11 57,947.11 57,947.11 57,947.11 57,947.11

SSS Payable 77,340.00 77,340.00 77,340.00 77,340.00 77,340.00

HDMF Payable 27,814.62 27,814.62 27,814.62 27,814.62 27,814.62

PhilHealth Payable 39,600.00 39,600.00 39,600.00 39,600.00 39,600.00

Utilities Payable 141,828.00 148,919.40 156,365.37 164,183.64 172,392.82

Taxes and Licenses
Payable 81,487.24 86,128.33 116,348.67 147,550.61 164,930.74

Advertising Payable - - - - -
Office Supplies
Payable 4,356.00 4,573.80 4,802.49 5,042.61 5,294.75

Rent Payable 102,000.00 102,000.00 102,000.00 102,000.00 102,000.00

Depreciation 18,290.00 18,290.00 18,290.00 18,290.00 18,290.00

Delivery Payable - - - - -
Income Tax
Payable - 31,742.81 144,069.80 259,474.45 1,218,415.41

Total Liabilities 1,103,468.35 1,147,161.44 1,297,383.43 1,452,048.43 2,436,830.82

Partners' Equity

Aguto, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Bantayan, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Chan, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Damian, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Dela Cruz, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Escobar, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Resente, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Santos, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Sesperes, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

Total Capital 268,689.81 342,756.36 678,919.22 1,284,359.61 2,254,387.51

TOTAL
LIABILITIES
AND
PARTNERS'
EQUITY: 1,372,158.16 1,489,917.81 1,976,302.65 2,736,408.04 4,691,218.33

(182,900.00) (95,513.81) 204,930.17 514,260.16 2,483,824.94

5.3.2 Income Statement

5.3.2.1 Monthly Income Statement

Table 14

Love for Babies LB Bag

Statement of Compehensive Income

For the year ended December 31, 2019

Septemb Novemb Decemb

January February March April May June July August October TOTAL
er er er

106,821. 122,700. 121,256. 119,813. 125,587. 141,466. 157,344. 167,449. 173,223.8 171,780. 167,449. 181,885. 1,756,778.
Net Sales 36 21 68 15 28 13 98 70 3 30 70 02 33

Cost of 56,221.7 64,579.0 63,819.3 63,059.5 66,098.5 74,455.8 82,813.1 88,131.4 90,410.6 88,131.4 95,728.9
Good Sold 7 6 1 5 7 6 5 2 91,170.44 8 2 6 924,620.18

GROSS 50,599.5 58,121.1 57,437.3 56,753.6 59,488.7 67,010.2 74,531.8 79,318.2 81,369.6 79,318.2 86,156.0
PROFIT 9 5 7 0 1 7 3 8 82,053.39 1 8 6 832,158.16

Operating
Expenses:

Salaries 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1
Expense 1 1 1 1 1 1 1 1 46,067.11 1 1 1 552,805.38
13th Month
Pay 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 57,947.11
SSS
Expense 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 77,340.00
HDMF
Expense 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 27,814.62
PhilHealth
Expense 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 39,600.00

Utilities 11,819.0 11,819.0 11,819.0 11,819.0 11,819.0 11,819.0 11,819.0 11,819.0 11,819.0 11,819.0 11,819.0
Expense 0 0 0 0 0 0 0 0 11,819.00 0 0 0 141,828.00

Taxes and 28,783.8 10,523.3 11,606.0 15,633.4

Licenses 9 5 0 14,940.56 5 81,487.24
Advertising
Expense - - - - - - - - - - - -
Office
Supplies
Expense 363.00 363.00 363.00 363.00 363.00 363.00 363.00 363.00 363.00 363.00 363.00 363.00 4,356.00

Rent
Expense 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 102,000.00
Depreciatio
n Expense 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 18,290.00
Delivery
Expenses
TOTAL
OPERATI
NG
EXPENSE 113,948. 85,165.0 95,688.4 85,165.0 85,165.0 96,771.0 85,165.0 85,165.0 100,105.6 85,165.0 85,165.0 100,798. 1,103,468.
S 98 9 4 9 9 9 9 9 5 9 9 54 35

Income (63,349.3 (27,043.9 (38,251.0 (28,411.5 (25,676.3 (29,760.8 (10,633.2 (5,846.81 (18,052.2 (3,795.48 (5,846.81 (14,642.4 (271,310.1
Before Tax 9) 4) 6) 0) 8) 2) 6) ) 5) ) ) 8) 9)
Income
Tax (30%) - - - - - - - - - - - - -
NET
INCOME
(63,349.3 (27,043.9 (38,251.0 (28,411.5 (25,676.3 (29,760.8 (10,633.2 (5,846.81 (18,052.2 (3,795.48 (5,846.81 (14,642.4 (271,310.1
(LOSS) 9) 4) 6) 0) 8) 2) 6) ) 5) ) ) 8) 9)

Love for Babies LB Bag

Statement of Compehensive Income

For the year ended December 31, 2020

Septemb Novemb Decemb

January February March April May June July August October TOTAL
er er er

183,328. 197,763. 196,320.3 194,876. 193,433. 207,868. 222,303. 232,408. 236,739.2 235,295. 230,965. 246,843. 2,578,147.
Net Sales 55 87 4 81 28 59 91 64 3 70 11 96 99

Cost of
Goods 96,488.7 104,086. 103,326.4 102,566. 101,806. 109,404. 117,002. 122,320. 124,599.6 123,839. 121,560. 129,917. 1,356,919.
Sold 1 25 9 74 99 52 06 34 0 84 58 87 99

GROSS 86,839.8 93,677.6 92,310.0 91,626.2 98,464.0 105,301. 110,088. 112,139.6 111,455. 109,404. 116,926. 1,221,228.
PROFIT 4 2 92,993.85 7 9 7 85 30 4 86 52 08 00

Operating
Expenses:

Salaries 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1
Expense 1 1 46,067.11 1 1 1 1 1 46,067.11 1 1 1 552,805.38
13th Month
Pay 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 57,947.11
SSS
Expense 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 77,340.00
HDMF
Expense 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 27,814.62
PhilHealth
Expense 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 39,600.00

Utilities 12,409.9 12,409.9 12,409.9 12,409.9 12,409.9 12,409.9 12,409.9 12,409.9 12,409.9 12,409.9
Expense 5 5 12,409.95 5 5 5 5 5 12,409.95 5 5 5 148,919.40

Taxes and 17,885.3 21,393.1

Licenses 8,783.89 17,322.38 6 20,743.55 4 86,128.33
Advertising
Expense - - - - - - - - - - - -
Office
Supplies
Expense 381.15 381.15 381.15 381.15 381.15 381.15 381.15 381.15 381.15 381.15 381.15 381.15 4,573.80

Rent
Expense 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 102,000.00
Depreciatio
n Expense 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 18,290.00
Delivery
Expenses
TOTAL
OPERATIN
G
EXPENSE 94,558.0 85,774.1 103,096.5 85,774.1 85,774.1 103,659. 85,774.1 85,774.1 106,517.7 85,774.1 85,774.1 107,167. 1,115,418.
S 8 9 8 9 9 55 9 9 5 9 9 34 64

Income (7,718.24 (10,102.7 (5,195.48 19,527.6 24,314.1 25,681.6 23,630.3

Before Tax ) 7,903.43 3) 6,535.87 5,852.10 ) 6 1 5,621.89 7 3 9,758.75 105,809.36
Income
Tax (30%) - 2,371.03 - 1,960.76 1,755.63 - 5,858.30 7,294.23 1,686.57 7,704.50 7,089.10 2,927.62 31,742.81

NET
INCOME (7,718.24 (10,102.7 (5,195.48 13,669.3 17,019.8 17,977.1 16,541.2
(LOSS) ) 5,532.40 3) 4,575.11 4,096.47 ) 6 8 3,935.32 7 3 6,831.12 74,066.55
 Love for Babies LB Bag

Statement of Compehensive Income

For the year ended December 31, 2021

Septemb Novemb Decemb

January February March April May June July August October TOTAL
er er er

244,678. 263,444. 262,722.8 261,279. 266,331. 279,323. 299,532. 311,802. 313,968.1 313,246. 308,915. 323,351. 3,448,597.
Net Sales 66 57 1 28 64 42 87 89 9 42 83 15 73

Cost of
Goods 128,778. 138,655. 138,275.1 137,515. 140,174. 147,012. 157,648. 164,106. 165,246.4 164,866. 162,587. 170,184. 1,815,051.
Sold 24 04 6 41 55 33 88 79 2 54 28 81 44

GROSS 115,900. 124,789. 124,447.6 123,763. 126,157. 132,311. 141,883. 147,696. 148,721.7 148,379. 146,328. 153,166. 1,633,546.
PROFIT 42 53 5 87 09 10 99 11 7 89 55 33 29

Operating
Expenses:

Salaries 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1
Expense 1 1 46,067.11 1 1 1 1 1 46,067.11 1 1 1 552,805.38
13th Month
Pay 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 57,947.11
SSS
Expense 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 77,340.00
HDMF
Expense 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 27,814.62
PhilHealth
Expense 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 39,600.00

Utilities 13,030.4 13,030.4 13,030.4 13,030.4 13,030.4 13,030.4 13,030.4 13,030.4 13,030.4 13,030.4
Expense 5 5 13,030.45 5 5 5 5 5 13,030.45 5 5 5 156,365.37

Taxes and 12,890.7 24,208.0 28,365.4

Licenses 4 23,125.38 3 27,759.12 0 116,348.67
Advertising
Expense - - - - - - - - - - - -
Office
Supplies
Expense 400.21 400.21 400.21 400.21 400.21 400.21 400.21 400.21 400.21 400.21 400.21 400.21 4,802.49

Rent
Expense 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 102,000.00
Depreciatio
n Expense 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 18,290.00
Delivery
Expenses
TOTAL
OPERATIN
G
EXPENSE 99,304.4 86,413.7 109,539.1 86,413.7 86,413.7 110,621. 16,170.0 86,413.7 114,172.8 86,413.7 86,413.7 114,779. 1,153,313.
S 9 5 3 5 5 78 0 5 7 5 5 15 64

Income 16,595.9 38,375.7 37,350.1 39,743.3 21,689.3 125,713. 61,282.3 61,966.1 59,914.8 38,387.1
Before Tax 3 9 14,908.52 2 4 2 99 6 34,548.91 4 0 8 480,232.66

Income 11,512.7 11,205.0 11,923.0 37,714.2 18,384.7 18,589.8 17,974.4 11,516.1

Tax (30%) 4,978.78 4 4,472.56 4 0 6,506.80 0 1 10,364.67 4 4 6 144,069.80

NET
INCOME 11,617.1 26,863.0 26,145.0 27,820.3 15,182.5 87,999.7 42,897.6 43,376.3 41,940.3 26,871.0
(LOSS) 5 5 10,435.96 8 4 2 9 5 24,184.24 0 6 3 336,162.86
 Love for Babies LB Bag

Statement of Compehensive Income

For the year ended December 31, 2022

Septemb Novemb Decemb

January February March April May June July August October TOTAL
er er er

320,464. 333,455. 331,290. 329,847. 338,508. 347,891. 367,378. 378,205. 393,362.4 389,753. 389,031. 424,398. 4,343,587.
Net Sales 08 87 57 04 23 19 87 36 5 62 85 38 51

Cost of
Goods 168,665. 175,503. 174,363. 173,603. 178,162. 183,100. 193,357. 199,055. 207,032.8 205,133. 204,753. 223,367. 2,286,098.
Sold 31 09 46 71 23 63 30 45 7 48 61 57 69

Gross 151,798. 157,952. 156,927. 156,243. 160,346. 164,790. 174,021. 179,149. 186,329.5 184,620. 184,278. 201,030. 2,057,488.
Profit 78 78 11 34 00 56 57 91 8 13 24 81 82

Operating
Expenses:

Salaries 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1
Expense 1 1 1 1 1 1 1 1 46,067.11 1 1 1 552,805.38
13th Month
Pay 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 57,947.11
SSS
Expense 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 77,340.00
HDMF
Expense 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 27,814.62
PhilHealth
Expense 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 39,600.00

Utilities 13,681.9 13,681.9 13,681.9 13,681.9 13,681.9 13,681.9 13,681.9 13,681.9 13,681.9 13,681.9 13,681.9
Expense 7 7 7 7 7 7 7 7 13,681.97 7 7 7 164,183.64

Taxes and 17,242.9 29,556.3 30,487.3 36,095.5

Licenses 9 2 9 34,168.40 2 147,550.61
Advertising
Expense - - - - - - - - - - - -
Office
Supplies
Expense 420.22 420.22 420.22 420.22 420.22 420.22 420.22 420.22 420.22 420.22 420.22 420.22 5,042.61

Rent
Expense 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 102,000.00
Depreciatio
n Expense 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 18,290.00
Delivery
Expenses -
TOTAL
OPERATIN
G
EXPENSE 104,328. 87,085.2 116,641. 87,085.2 87,085.2 117,572. 87,085.2 87,085.2 121,253.6 87,085.2 87,085.2 123,180. 1,192,573.
S 27 8 60 8 8 67 8 8 8 8 8 80 97

Income 47,470.5 70,867.5 40,285.5 69,158.0 73,260.7 47,217.8 86,936.2 92,064.6 97,534.8 97,192.9 77,850.0
Before Tax 1 0 2 6 3 9 9 3 65,075.90 5 6 2 864,914.85

Income 14,241.1 21,260.2 12,085.6 20,747.4 21,978.2 14,165.3 26,080.8 27,619.3 29,260.4 29,157.8 23,355.0
Tax (30%) 5 5 6 2 2 7 9 9 19,522.77 6 9 1 259,474.45

NET
INCOME 33,229.3 49,607.2 28,199.8 48,410.6 51,282.5 33,052.5 60,855.4 64,445.2 68,274.4 68,035.0 54,495.0
(LOSS) 6 5 6 4 1 2 0 4 45,553.13 0 8 1 605,440.39

Love for Babies LB Bag

 Statement of Compehensive Income

For the year ended December 31, 2023

Septemb Novemb Decemb

January February March April May June July August October TOTAL
er er er

417,180. 434,503. 431,616. 425,120. 441,720. 453,269. 457,599. 474,922. 474,922.0 482,139. 496,574. 508,123. 5,497,691.
Net Sales 72 10 04 15 76 02 62 00 0 66 98 23 28

Cost of
Goods 219,568. 228,685. 227,166. 223,747. 232,484. 238,562. 240,841. 249,958. 249,958.9 253,757. 261,355. 267,433. 2,893,521.
Sold 80 84 34 45 61 64 90 95 5 71 25 28 72

Gross 197,611. 205,817. 204,449. 201,372. 209,236. 214,706. 216,757. 224,963. 224,963.0 228,381. 235,219. 240,689. 2,604,169.
Profit 92 26 70 70 15 38 71 05 5 94 73 95 55

Operating
Expenses:

Salaries 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1 46,067.1
Expense 1 1 1 1 1 1 1 1 46,067.11 1 1 1 552,805.38
13th Month
Pay 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 4,828.93 57,947.11
SSS
Expense 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 6,445.00 77,340.00
HDMF
Expense 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 2,317.88 27,814.62
PhilHealth
Expense 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00 39,600.00

Utilities 14,366.0 14,366.0 14,366.0 14,366.0 14,366.0 14,366.0 14,366.0 14,366.0 14,366.0 14,366.0 14,366.0
Expense 7 7 7 7 7 7 7 7 14,366.07 7 7 7 172,392.82

Taxes and 38,499.0 39,603.3 44,605.1

Licenses 0 0 42,223.31 4 164,930.74
Advertising
Expense - - - - - - - - - - - -
Office
Supplies
Expense 441.23 441.23 441.23 441.23 441.23 441.23 441.23 441.23 441.23 441.23 441.23 441.23 5,294.75

Rent
Expense 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 102,000.00
Depreciatio
n Expense 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 1,524.17 18,290.00
Delivery
Expenses -
TOTAL
OPERATIN
G
EXPENSE 87,790.3 87,790.3 126,289. 87,790.3 87,790.3 127,393. 87,790.3 87,790.3 130,013.7 87,790.3 87,790.3 132,395. 1,218,415.
S 9 9 39 9 9 69 9 9 0 9 9 53 41

Income 109,821. 118,026. 78,160.3 113,582. 121,445. 87,312.6 128,967. 137,172. 140,591. 147,429. 108,294. 1,385,754.
Before Tax 53 87 2 31 76 9 32 66 94,949.35 55 34 43 14

Income 32,946.4 35,408.0 23,448.1 34,074.6 36,433.7 26,193.8 38,690.2 41,151.8 42,177.4 44,228.8 32,488.3
Tax (30%) 6 6 0 9 3 1 0 0 28,484.81 7 0 3 415,726.24

NET
INCOME 76,875.0 82,618.8 54,712.2 79,507.6 85,012.0 61,118.8 90,277.1 96,020.8 98,414.0 103,200. 75,806.1
(LOSS) 7 1 2 2 3 8 3 6 66,464.55 9 54 0 970,027.90

5.3.2.2 Annual Income Statement

 Table 15

Love for Babies LB Bag

Statement of Compehensive Income
For the 5 years ended December 31, 2022
2019 2020 2021 2022 2023

GROSS PROFIT 832,158.16 1,221,228.00 1,633,546.29 2,057,488.82 2,604,169.55

Operating
Expenses:
Salaries Expense 552,805.38 552,805.38 552,805.38 552,805.38 552,805.38
13th Month Pay 57,947.11 57,947.11 57,947.11 57,947.11 57,947.11
SSS Expense 77,340.00 77,340.00 77,340.00 77,340.00 77,340.00
HDMF Expense 27,814.62 27,814.62 27,814.62 27,814.62 27,814.62
PhilHealth Expense 39,600.00 39,600.00 39,600.00 39,600.00 39,600.00
Utilities Expense 141,828.00 148,919.40 156,365.37 164,183.64 172,392.82
Taxes and Licenses 81,487.24 86,128.33 116,348.67 147,550.61 164,930.74
Advertising Expense - - - - -
Office Supplies
Expense 4,356.00 4,573.80 4,802.49 5,042.61 5,294.75
Rent Expense 102,000.00 102,000.00 102,000.00 102,000.00 102,000.00
Depreciation
Expense 18,290.00 18,290.00 18,290.00 18,290.00 18,290.00
Delivery Expenses - - - - -
TOTAL
OPERATING
EXPENSES 1,103,468.35 1,115,418.64 1,153,313.64 1,192,573.97 1,218,415.41

Income Before Tax (271,310.19) 105,809.36 480,232.66 864,914.85 1,385,754.14

Income Tax (30%) - 31,742.81 144,069.80 259,474.45 415,726.24
NET INCOME
(LOSS) (271,310.19) 74,066.55 336,162.86 605,440.39 970,027.90

Table 16

5.3.3 Projected Cash Flow

Love for babies LB Bag

Statement of Cash Flow
As of the 5 years ending December 31, 2023
 ACCOUNTS 2019 2020 2021 2022 2023

OPERATING ACTIVITIES:
Net Income (Loss) (271,310.19) 74,066.55 336,162.86 605,440.39 970,027.90
Depreciation 18,290.00 18,290.00 18,290.00 18,290.00 18,290.00
(253,020.19) 92,356.55 354,452.86 623,730.39 988,317.90

(Increase) decrease in
Finished Goods (9,572.90) (3,418.89) (4,026.69) (5,318.28) (4,406.57)
Increase (decrease) in
Salaries Payable 552,805.38 - - - -
Increase (decrease) in
13th Month Pay Payable 57,947.11 - - - -
Increase (decrease) in
SSS Payable 77,340.00 - - - -
Increase (decrease) in
HDMF Payable 27,814.62 - - - -
Increase (decrease) in
PhilHealth Payable 39,600.00 - - - -
Increase (decrease) in
Utilities Payable 141,828.00 (7,091.40) (7,445.97) (7,818.27) (8,209.18)
Increase (decrease) in
Taxes and Licenses
Payable 81,487.24 (4,641.09) (30,220.34) (31,201.94) (17,380.12)
Increase (decrease) in
Advertising Payable - - - - -
Increase (decrease) in
Office Supplies Payable 4,356.00 (217.80) (228.69) (240.12) (252.13)
Increase (decrease) in
Rent Payable 102,000.00 - - - -
Increase (decrease) in
Depreciation 18,290.00 - - - -
Increase (decrease) in
Delivery Payable - - - - -
Increase (decrease) in
Income Tax Payable - (31,742.81) (112,326.99) (115,404.66) (958,940.95)

Net Cash Flow from

Operating Activities 840,875.26 (47,111.99) (154,248.68) (159,983.27) (989,188.96)

INVESTING ACTIVITIES:
Furniture and Fixture 24,450.00 - - - -
Office Equipment 31,000.00 - - - -
Production Equipment 36,000.00 - - - -
Net Cash Flow from
Investing Activities 91,450.00 - - - -

FINANCING ACTIVITIES:
Capital Investment 540,000.00
Receipt/(Payment) of
Loans
Net Cash Flow from 540,000.00 - - - -
Financing Activities

Net Cash Flow 1,472,325.26 45,244.56 200,204.17 463,747.13 (871.06)

Add: Cash Balance,
Beginning - 1,472,325.26 1,517,569.82 1,717,774.00 2,181,521.13
Cash Balance, Ending 1,472,325.26 1,517,569.82 1,717,774.00 2,181,521.13 2,180,650.06

5.3.4 Monthly Cost of Goods Manufactured

Table 17

Love for Babies LB Bag

Finished Goods (At Cost)

For the year ended December 2023

Januar Februar Marc Augus Septembe Octobe Novembe Decembe

Year ACCOUNTS April May June July TOTAL
y y h t r r r r
Manufacturing
380 380 380 380 380 380 380 380 380 380 380 380 380
Cost per unit
Finished
Goods, - 5,622 6,458 6,382 6,306 6,610 7,446 8,281 8,813 9,117 9,041 8,813 -
Beginning

2019 Goods
Produced
61,844 65,415 63,743 62,984 66,402 75,292 83,649 88,663 91,474 90,335 87,903 96,489 934,193

Cost of Goods
56,222 64,579 63,819 63,060 66,099 74,456 82,813 88,131 91,170 90,411 88,131 95,729 924,620
Sold
Finished
Goods, 5,622 6,458 6,382 6,306 6,610 7,446 8,281 8,813 9,117 9,041 8,813 9,573 9,573
Ending

Manufacturing
380 380 380 380 380 380 380 380 380 380 380 380 380
Cost per unit
Finished
Goods, 9,573 9,649 10,409 10,333 10,257 10,181 10,940 11,700 12,232 12,460 12,384 12,156 9,573
Beginning
Goods 103,25 102,49 101,73 110,16 117,76 1,360,33
2020 Produced
96,565 104,846
1 1 1 4 2
122,852 124,828 123,764 121,333 130,754
9

Cost of Goods 103,32 102,56 101,80 109,40 117,00

96,489 104,086 122,320 124,600 123,840 121,561 129,918
Sold 6 7 7 5 2
1,356,920
Finished
Goods, 9,649 10,409 10,333 10,257 10,181 10,940 11,700 12,232 12,460 12,384 12,156 12,992 12,992
Ending

Manufacturing
380 380 380 380 380 380 380 380 380 380 380 380 380
Cost per unit
Finished
Goods, 12,992 12,878 13,866 13,828 13,752 14,017 14,701 15,765 16,411 16,525 16,487 16,259 12,992
Beginning
Goods 138,23 137,43 140,44 147,69 158,71 1,819,07
2021 Produced
128,664 139,643
7 9 0 6 3
164,753 165,360 164,829 162,359 170,945
8

Cost of Goods 138,27 137,51 140,17 147,01 157,64

128,778 138,655 164,107 165,246 164,867 162,587 170,185
Sold 5 5 5 2 9
1,815,051
Finished
Goods, 12,878 13,866 13,828 13,752 14,017 14,701 15,765 16,411 16,525 16,487 16,259 17,018 17,018
Ending

Manufacturing
2022 Cost per unit
Finished
380 380 380 380 380 380 380 380 380 380 380 380 380

Goods, 17,018 16,867 17,550 17,436 17,360 17,816 18,310 19,336 19,906 20,703 20,513 20,475 17,018
Beginning
Goods 168,513 176,187 174,24 173,52 178,61 183,59 194,38 199,625 207,831 204,944 204,716 225,229 2,291,41
Produced 9 8 8 4 3 7
 Cost of Goods 174,36 173,60 178,16 183,10 193,35
168,665 175,503 199,055 207,033 205,133 204,754 223,368
Sold 3 4 2 1 7
2,286,099
Finished
Goods, 16,867 17,550 17,436 17,360 17,816 18,310 19,336 19,906 20,703 20,513 20,475 22,337 22,337
Ending

Manufacturing
380 380 380 380 380 380 380 380 380 380 380 380 380
Cost per unit
Finished
Goods, 22,337 21,957 22,869 22,717 22,375 23,248 23,856 24,084 24,996 24,996 25,376 26,136 22,337
Beginning
Goods 227,01 223,40 233,35 239,17 241,07 2,897,92
2023 Produced
219,189 229,598
4 6 8 0 0
250,871 249,959 254,138 262,115 268,041
8

Cost of Goods 227,16 223,74 232,48 238,56 240,84

219,569 228,686 249,959 249,959 253,758 261,355 267,433
Sold 6 7 5 3 2
2,893,522
Finished
Goods, 21,957 22,869 22,717 22,375 23,248 23,856 24,084 24,996 24,996 25,376 26,136 26,743 26,743
Ending

5.3.5 Expense Schedule

Table 18

SALARIES EXPENSE
DAILY APPROX NO OF MONTHLY
WORKERS
RATE PROD. DAYS RATE
EMPLOYEES ENGAGED IN PRODUCTION
Tailor 180.00 22 3,960.00
Tailor 180.00 22 3,960.00
Tailor 180.00 22 3,960.00
Total Labor Cost 11,880.00
EMPLOYEES NOT ENGAGED IN PRODUCTION
Finance and Administrative Manager -
300.08 22 6,601.86
ESCOBAR
Customer Service Agent - BANTAYAN 190.94 22 4,200.69
Accountant - CHAN 237.35 22 5,221.71
Sales & Marketing Manager - AGUTO 289.20 22 6,362.44
Digital Marketing Manager - DELA
288.98 22 6,357.66
CRUZ
Product Designer - DAMIAN 182.37 22 4,012.11
HR Administrator - SANTOS 203.23 22 4,471.03
Production Supervisor - SESPERES 192.64 22 4,238.00
Quality Control Supervisor - RESENTE 209.16 22 4,601.61
Total Salaries Expense 46,067.11

SSS, HDMF AND PHILHEALTH EXPENSE

EMPLOYEE'S EMPLOYER'S
WORKERS TOTAL
SHARE SHARE
SSS Contributions
Tailor 145.30 304.70 450.00
Tailor 145.30 304.70 450.00
Tailor 145.30 304.70 450.00

Finance and Administrative Manager 236.20 488.80 725.00

Customer Service Agent 145.30 304.70 450.00
Accountant 181.70 378.30 560.00
Sales & Marketing Manager 236.20 488.80 725.00
Digital Marketing Manager 236.20 488.80 725.00
Product Designer 145.30 304.70 450.00
HR Administrator 163.50 341.50 505.00
Production Supervisor 145.30 304.70 450.00
Quality Control Supervisor 163.50 341.50 505.00
-
Sub-total 2,089.10 4,355.90 6,445.00
HDMF (Pag-ibig) Contributions
Tailor 79.20 79.20 158.40
Tailor 79.20 79.20 158.40
Tailor 79.20 79.20 158.40

Finance and Administrative Manager 132.04 132.04 264.07

Customer Service Agent 84.01 84.01 168.03
Accountant 104.43 104.43 208.87
Sales & Marketing Manager 127.25 127.25 254.50
Digital Marketing Manager 127.15 127.15 254.31
Product Designer 80.24 80.24 160.48
HR Administrator 89.42 89.42 178.84
Production Supervisor 84.76 84.76 169.52
Quality Control Supervisor 92.03 92.03 184.06

Sub-total 1,158.94 1,158.94 2,317.88

Philhealth Contributions
Tailor 137.50 137.50 275.00
Tailor 137.50 137.50 275.00
Tailor 137.50 137.50 275.00

Finance and Administrative Manager 137.50 137.50 275.00

Customer Service Agent 137.50 137.50 275.00
Accountant 137.50 137.50 275.00
Sales & Marketing Manager 137.50 137.50 275.00
Digital Marketing Manager 137.50 137.50 275.00
Product Designer 137.50 137.50 275.00
HR Administrator 137.50 137.50 275.00
Production Supervisor 137.50 137.50 275.00
Quality Control Supervisor 137.50 137.50 275.00

Sub-total 1,650.00 1,650.00 3,300.00

Total SSS, HDMF and Philhealth
4,898.04 7,164.84
Expense 12,062.88

Table 19

UTILITIES AND
COMMUNICATION

EXPENSE AMOUNT

Electric Bill 2,000.00

Water Bill 20.00
Internet & phone 1,299.00
Rent 8,500.00
Total 11,819.00

Table 20

TAXES AND LICENSES

SALES RATE AMOUNT

Percentage Tax
1st Quarter 350,778.25 3% 10,523.35
2nd Quarter 386,866.55 3% 11,606.00
3rd Quarter 498,018.51 3% 14,940.56
4th Quarter 521,115.02 3% 15,633.45
Local Business Tax 1,756,778.33 0.5% 8,783.89
TOTAL 61,487.24

Table 21

DEPRECIATION EXPENSE

ACQUISITION ACCUM. CARRYING MONTHLY YEARLY

Year DEPRECIATION
COST DEP'N VALUE DEP'N DEP'N
FURNITURE AND FIXTURE
2019 24,450.00 4,890.00 4,890.00 19,560.00 407.50 4,890.00
2020 24,450.00 4,890.00 9,780.00 14,670.00 407.50 4,890.00
2021 24,450.00 4,890.00 14,670.00 9,780.00 407.50 4,890.00
2022 24,450.00 4,890.00 19,560.00 4,890.00 407.50 4,890.00
2023 24,450.00 4,890.00 24,450.00 - 407.50 4,890.00
OFFICE EQUIPMENT
2019 31,000.00 6,200.00 6,200.00 24,800.00 516.67 6,200.00
2020 31,000.00 6,200.00 12,400.00 18,600.00 516.67 6,200.00
2021 31,000.00 6,200.00 18,600.00 12,400.00 516.67 6,200.00
2022 31,000.00 6,200.00 24,800.00 6,200.00 516.67 6,200.00
2023 31,000.00 6,200.00 31,000.00 - 516.67 6,200.00
PRODUCTION EQUIPMENT
2019 36,000.00 7,200.00 7,200.00 28,800.00 600.00 7,200.00
2020 36,000.00 7,200.00 14,400.00 21,600.00 600.00 7,200.00
2021 36,000.00 7,200.00 21,600.00 14,400.00 600.00 7,200.00
2022 36,000.00 7,200.00 28,800.00 7,200.00 600.00 7,200.00
2023 36,000.00 7,200.00 36,000.00 - 600.00 7,200.00
TOTAL MONTHLY
DEPRECIATION 1,524.17
TOTAL ANNUAL
DEPRECIATION 18,290.00

5.3.6 Statement of Annual Changes in Owner’s Equity

Table 22

Love for Babies LB Bag

Statement of Changes in Partners' Equity
For the 5 years ended December 31, 2023

2019 2020 2021 2022 2023

Beginning
Capital
Aguto, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
Bantayan, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
Chan, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
Damian, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
Dela Cruz, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
Escobar, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
Resente, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
Santos, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
Sesperes, Capital 60,000.00 29,854.42 38,084.04 75,435.47 142,706.62
 TOTAL 540,000.00 268,689.81 342,756.36 678,919.22 1,284,359.61

Add: Net
Income
(Loss)
Aguto, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88
Bantayan, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88
Chan, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88
Damian, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88
Dela Cruz, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88
Escobar, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88
Resente, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88
Santos, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88
Sesperes, Capital (30,145.58) 8,229.62 37,351.43 67,271.15 107,780.88

TOTAL (271,310.19) 74,066.55 336,162.86 605,440.39 970,027.90

Ending
Capital
Aguto, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50
Bantayan, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50
Chan, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50
Damian, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50
Dela Cruz, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50
Escobar, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50
Resente, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50
Santos, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50
Sesperes, Capital 29,854.42 38,084.04 75,435.47 142,706.62 250,487.50

TOTAL 268,689.81 152,336.16 301,741.88 570,826.50 1,001,950.01

Number of Partners: 9.00

5.4 Financial Analysis

5.4.1 Break-even Analysis

Table 23

Breakeven Analysis
2019 2020 2021 2022 2023

2,578,147.9 4,343,587.5
Net Sales 1,756,778.33 9 3,448,597.73 1 5,497,691.28
 1,356,919.9 2,286,098.6
Variable Expense 924,620.18 9 1,815,051.44 9 2,893,521.72

1,221,228.0 2,057,488.8
Gross Margin 832,158.16 0 1,633,546.29 2 2,604,169.55

2,578,147.9 4,343,587.5
Divided by Sales 1,756,778.33 9 3,448,597.73 1 5,497,691.28
CONTRIBUTION MARGIN RATIO 47% 47% 47% 47% 47%

1,115,418.6 1,192,573.9
Fixed Expenses 1,103,468.35 4 1,153,313.64 7 1,218,415.41
Divided by Contribution Margin
Ratio 47% 47% 47% 47% 47%

2,354,772.6 2,517,656.1
BREAKEVEN POINT IN PESOS 2,329,544.29 8 2,434,773.24 7 2,572,210.31

Divided by Mark Up 341.89 341.89 341.89 341.89 341.89

BREAKEVEN POINT IN UNITS 3,228 3,263 3,373 3,488 3,564

5.4.2 Payback Period, Return on Investment

Table 24

Return on Investment and Payback Period

2019 2020 2021 2022 2023 NPV
Discount Rate
Net Income (271,310.19) 74,066.55 336,162.86 605,440.39 970,027.90
Depreciation 18,290.00 18,290.00 18,290.00 18,290.00 18,290.00
Net Cash Flow (253,020.19) 92,356.55 354,452.86 623,730.39 988,317.90
1,265,837.51
Discount
Factor 1.0000 1.0000 1.0000 1.0000 1.0000
Present Value (253,020.19) 92,356.55 354,452.86 623,730.39 988,317.90
Accumulated
PV (253,020.19) (160,663.64) 193,789.22 817,519.61 1,805,837.51

Return on
Investment 63%
Payback Period Year 4

Capital
Year Net Cash Flow Investment 540,000.00
1 -25302019% 793,020.19
2 9235655% 700,663.64
3 35445286% 346,210.78
4 62373039% (277,519.61)
5 98831790% (1,265,837.51)