BILIS APPROVE LENDING SERVICE

Start-up Cost and Capitalization

A. PRE-OPERATING EXPENSES
Supplies Expense 30,000
Prepaid Rent 4,000
Promotional Expense 3,180
Permits and Licenses 21,184 58,364
B. CAPITAL EXPENDITURES
Leasehold Improvement 70,000
Equipments 117,500
Furniture and Fixtures 35,500 223,000
C. WORKING CAPITAL (Loanable Amount and Contigency) 7,218,636
START-UP COST 7,500,000
CAPITALIZATION
Proceeds from Issuance of Stocks 7,500,000
EXTERNAL FINANCING NEEDS (0)
281,363.60
BILIS APPROVE LENDING SERVICE
Financial Assumptions
For the Period Ended 20x1-20x3

INCOME STATEMENT
1 The revenue is primarily from interest on loans and related service charges. On average, there are 10 l
2 The 10 loan releases per week were grossed up annually to get annual loan releases with 5% increase
3 Principal and interest earned are collected monthly regardless of the loan released date.
4 The utilities expense and supplies expense for business administration are subject to 5% increase each
5 Some items in Permits and licences will incur only in the first year of operation. All other operating expe
6 Depreciation Expense is on the straight line basis with no residual value.
7 Replacements of fully depreciated assets are made at the end of its useful life.
8 The business is VAT registered and income tax due is computed using 30% rate for Corporation
BALANCE SHEET
1 Loan Receivable are calculated based on the age of the accounts outstanding at year end. See Note 1
2 For the purpose of compting Accounts Loan Receivable at year end, it is assumed that loan releases a
3 Supplies is maintained equal to 1 month of current years' supplies expense
4 Prepaid Rent represents advance payment of monthly rental of building.
5 All current liabilities represent accrual of expenses.
CASH FLOW STATEMENT
1 The business uses indirect method.
EQUITY
1 The business will need to issue shares of stock to accumulate proceeds of at least 7,500,000. See sche
2 80% of the authorized shares of stocks were subscribed and at least 50% were paid in cash. All incorp
2 Dividends is 20% of current year's net-income.
average, there are 10 loan releases per week with clients can re-loan as long as previous loans are fully paid.
ases with 5% increase annually, then allocated to loan products based on preferences of the clients.

ect to 5% increase each year to reflect avarage inflation rate.

All other operating expenses are recurring.

e for Corporation

t year end. See Note 17. Allowance for Doubtful Accounts are estimated at 2% of Accounts Receivable outstanding
ed that loan releases are made evenly throughout the year.

ast 7,500,000. See schedule of share subscription.

paid in cash. All incorporators have equal subscription.
are fully paid.

eivable outstanding
BILIS APPROVE LENDING SERVICE
Statement of Financial Position
As of Year Ended 20x1-20x3

ASSETS Notes 20x1 20x2 20x3

Current Assets
Cash 5,794,102 5,856,887 5,886,491
Loans Receivable, net 17 1,563,100 1,617,000 1,719,900
Supplies 2,500 2,500 2,500
Prepaid Rent 4,000 4,000 4,000
Subtotal 7,363,702 7,480,387 7,612,891
Non-Current Assets (Net)
Leasehold Improvement 5 63,000 56,000 49,000
Equipments 5 96,750 76,000 55,250
Furniture and Fixtures 5 28,533 21,567 14,600
Subtotal 188,283 153,567 118,850
TOTAL ASSETS 7,551,985 7,633,954 7,731,741
LIABILITIES & SHAREHOLDER'S EQUITY
Current Liabilities
Accrued Utilities 3 5,000 5,250 5,513
Income Tax Payable 4,003 10,077 12,662
VAT Tax Payable 16 7,865 8,269 8,662
SSS, PHIC, HDMF Payable 4 5,225 5,225 5,225
Subtotal 22,093 28,821 32,062
Shareholders' Equity
Common Stock, 3,750,000
authorized, 3,000,000 outstanding
Shares @ P5 Par Value 7,500,000 7,500,000 7,500,000
Retained Earnings 29,892 105,133 199,678
Subtotal 7,529,892 7,605,133 7,699,678
TOTAL LIABILITIES & SHAREHOLDER'S EQUIT 7,551,985 7,633,954 7,731,741
Checking - - -
BILIS APPROVE LENDING SERVICE
Statement of Financial Performance
For the Period Ended 20x1-20x3

Note 20x1 20x2 20x3

Revenues 1 786,496 826,942 866,228
Less: Operating Expenses
Power, Communication a 3 60,000 63,000 66,150
SSS, PHIC, PAGIBIG 4 62,702 62,702 62,702
Depreciation Expense 5 34,717 34,717 34,717
13th Month Pay 7 44,718 44,718 44,718
Salaries, Wages and Hon 8 338,718 338,718 338,718
Promotional Expense 9 3,180 3,180 3,180
Permits and Licenses 10 21,184 6,949 7,037
Professional Fee 11 24,000 24,000 24,000
Supplies Expense 12 30,000 31,500 33,075
Documentary Stamp Tax 13 24,000 24,000 24,000
Training Expense 14 10,000 10,000 10,000
Rent Expense 15 48,000 48,000 48,000
Doubtful Expense 17 31,900 1,100 1,100
Total Expenses 733,118 692,583 697,396
Operating Income 53,378 134,359 168,832
Less: Income Tax 16,013 40,308 50,650
Net-Income 37,364 94,051 118,182
BILIS APPROVE LENDING SERVICE
Statement of Changes in Shareholder's Equity
For the Period Ended 20x1-20x3

20x1 20x2 20x3

Common Stock, 3,750,000 authorized,

3,000,000 outstanding Shares @ P5
Par Value 7,500,000 7,500,000 7,500,000

Retained Earnings, Beg - 29,892 105,133

Add: Net-Income 37,364 94,051 118,182
Total 37,364 123,943 223,315
Less: Dividends 7,473 18,810 23,636
Retained Earnings, End 29,892 105,133 199,678

SCHEDULE OF SHARE SUBSCRIPTION

No. of Shares Total
Name of the Incorporators Acquired Subscription Paid
Incorporator 1 428,571.00 2,142,857.14 1,071,428.57
Incorporator 2 428,571.00 2,142,857.14 1,071,428.57
Incorporator 3 428,571.00 2,142,857.14 1,071,428.57
Incorporator 4 428,571.00 2,142,857.14 1,071,428.57
Incorporator 5 428,571.00 2,142,857.14 1,071,428.57
Incorporator 6 428,571.00 2,142,857.14 1,071,428.57
Incorporator 7 428,571.00 2,142,857.14 1,071,428.57
Total 3,000,000.00 15,000,000.00 7,500,000
BILIS APPROVE LENDING SERVICE
Cash Flow Statement
For the Period Ended 20x1-20x3

20x1 20x2
OPERATING ACTIVITIES
NET-INCOME AFTER TAX 37,364 94,051
Add/Deduct: Non-Cash Items
Depreciation-OPEX 34,717 34,717
Changes in Working Capital
(Increase)/ decrease Loans Receivable (1,563,100) (53,900)
(Increase)/ decrease Supplies (2,500) -
(Increase)/ decrease Prepaid Rent (4,000) -
Increase/ (decrease) Income Tax Payable 4,003 6,074
Increase/ (decrease) Business Tax Payable 7,865 404
Increase/ (decrease) Accrued Utilities Expenses 5,000 250
Increase/ (decrease) SSS, PHIC, PAGIBIG Payable 5,225 -
NET-CASH INFLOW/ (OUTFLOW) (1,475,426) 81,596

INVESTING ACTIVITIES
Leasehold Improvement (70,000)
Furniture and Fixtures (35,500)
Equipments (117,500)
NET-CASH INFLOW/(OUTFLOW) (223,000) -

FINANCING ACTIVITIES
Proceeds from Issuance of Stocks 7,500,000 -
Dividends (7,473) (18,810)
NET-CASH INFLOW (OUTFLOW) 7,492,527 (18,810)
TOTAL NET CASH FLOWS 5,794,102 62,786
Add: Cash, Beg. Balance - 5,794,102
CASH, ENDING BALANCE 5,794,102 5,856,887
20x3

118,182

34,717

(102,900)
-
-
2,585
393
263
- -1475425.52346
53,240

-
(23,636)
(23,636)
29,603
5,856,887
5,886,491
BILIS APPROVE LENDING SERVICE
Financial Ratios
For the Period Ended 20x1-20x3
20x1 20x2
Net Income 37,364 94,051
Return on Sales 5%
Revenue 786,496 826,942

Net- Income 37,364 94,051

Return on Assets 0.5%
Total Assets 7,551,985 7,633,954

Net- Income 37,364 94,051

Return on Equity 0.5%
Shareholders' Equity 7,500,000 7,500,000

Current Assets 7,363,702 5,856,887

333.30
Current Ratio Current Liabilities 22,093 28,821

Shareholders' Equity 7,500,000 7,500,000

Equity to Asset Ratio 99%
Total Assets 7,551,985 7,633,954

PAYBACK PERIOD Operating Cash Flows

7,500,000
1 37,364 7,462,635
2 94,051 7,368,584
3 118,182 7,250,402
4 118,182 7,132,219
5 118,182 7,014,037 65.35 yrs

BREAK- EVEN POINT 20x1 20x2 20x3

Revenue 786,496 826,942 866,228
Variable Cost 60,000 63,000 66,150
Contribution Margin 726,496 763,942 800,078

Fixed Cost 673,118 629,583 631,246

Contribution Margin Ratio (CM/SR) 92% 92% 92%
Break-Even Revenue 728,709 681,503 683,437
Average Price 1,969 1,969 1,969
No. of loan releases to break-even 370 346 347
20x2 20x3
118,182
11% 14%
866,228

118,182
1% 2%
7,731,741

118,182
1% 2%
7,500,000

5,886,491
203.21 183.60
32,062

7,500,000
98% 97%
7,731,741

Note: Includes COS and Utilities

BILIS APPROVE LENDING SERVICE
Sales Revenue
For the Period Ended 20x1-20x3

Note 1 Revenues Forecast

No. of Loan Releases

Terms
20x1 20x2
Interest Income
Loans @ Php10,000 for 3
35%
months 168 176
Loans @ Php10,000 for 6
34%
months 163 171
Loans @ Php25,000 for 3
16%
months 77 81
Loans @ Php25,000 for 6
15%
months 72 76
Subtotal 480 504

Loan Releases in Pesos

Service Charges @ 2%
Loans @ Php10,000 for 3
months 1,680,000 1,760,000
Loans @ Php10,000 for 6
months 1,630,000 1,710,000
Loans @ Php25,000 for 3
months 770,000 810,000
Loans @ Php25,000 for 6
months 720,000 760,000
Subtotal 4,800,000 5,040,000
Total Service Orders
Output VAT
PROJECTED REVENUES, VAT Exclusive
Loan Releases Interest Revenue (in pesos)
Income (See
Amortization
20x3 Table) 20x1 20x2 20x3

750
185 126,000 132,000 138,750
1,500
180 244,500 256,500 270,000
1,875
85 144,375 151,875 159,375
3,750
79 270,000 285,000 296,250
529 784,875 825,375 864,375

eases in Pesos

2%
1,850,000 33,600 35,200 37,000
2%
1,800,000 32,600 34,200 36,000
2%
850,000 15,400 16,200 17,000
2%
790,000 14,400 15,200 15,800
5,290,000 96,000 100,800 105,800
880,875 926,175 970,175
94,379 99,233 103,947
786,496 826,942 866,228
BILIS APPROVE LENDING SERVICE
Selling and Admin Expenses Schedule
For the Period Ended 20x1-20x3

NOTES

3 Power, Communication and Water Qty Unit Cost

Electricity 12 4,500
Water 12 500
Total

4 SSS, PHIC, PAGIBIG

Employee Monthly Salaries EE Share
CEO 15,000 600
Security Officer 9,906 400
Cashier 9,906 400
Financial Analyst/Loan Officer 9,906 400
Total- OPEX

5 Depreciation Expense Units Unit Cost

Fixed Assets
Leasehold Improvement
Renovation 1 50,000
Miscellaneous 1 20,000

Equipments
Computer Set with Printer 3 15,000
CCTV Camera 1 10,000
Cash Register 1 10,000
Television 1 5,000
Vault 1 27,500
Aircon 1 20,000

Furniture and Fixtures

Table office 4 3,000
Office Cabinet 1 4,000
Executive Chairs 3 5,000
Chairs 15 300

Grand Total

6 Capital Expenditures
Breakdown of Cost
 Unit

Leasehold Improvement Renovation 1

Miscellaneous 1
Subtotal

Computer Set with Printer 3

CCTV Camera 1
Cash Register 1
Equipments
Television 1
Vault 1
Aircon 1
Subtotal

Table office 4
Office Cabinet 1
Furniture and Fixtures
Executive Chairs 3
Chairs 15

Total

7 13th Month Pay No. of Employees Monthly Salary

CEO 1 15,000
Cashier 1 9,906
Security Officer 1 9,906
Financial Analyst/Loan Officer 1 9,906
Total-Charged to OPEX

8 Salaries, Wages and Honorarium No. of Employees Monthly Salary

Honoraria
BOD 7 3,500
Salaries
CEO 1 15,000
Security Officer 1 9,906
Cashier 1 9,906
Financial Analyst/Loan Officer 1 9,906
Total

9 Promotional Expense Qty Unit Cost

Brochures 100 15
Framing/Hanging of Tarpaulin 7 240
 Total

10 Permits and Licenses CLASSIFICATION UNITS

Mayors Permit Permits & Licenses 1

SEC Filing Fees Permits & Licenses 1
Legal Research Fees Permits & Licenses 1
By Laws Permits & Licenses 1
Bureau of Protection Permits & Licenses 1
Tax Clearance Fee Permits & Licenses 1
License Plate Permits & Licenses 1
BIR Fee Permits & Licenses 1
Business Name Registration Permits & Licenses 1
BIR Certification Fee Permits & Licenses 1
Documentary Stamp Permits & Licenses 1
Books of Accounts SOS 1
Print Receipts SOS 20
Total Permits

11 Professional Fee Qty Unit Cost

Accountant/ Bookkeeper 12 2,000
Total

12 Supplies Expense Qty Unit Cost

Office Supplies 12 2,500
Total

13 Documentary Stamp Tax Total Loan Amount # of P200

Monthly Allowance 4,800,000 200
Total

14 Training Expense Qty Unit Cost

Allowance/Registration 2 5,000
Total

15 Rent Expense Qty Unit Cost

Monthly Rent 12 4,000
Total

16 VAT Payable Output VAT Input VAT

Year 1 94,379 -
Year 2 99,233 -
Year 3 103,947 -
Total Cost
54,000
6,000 Note: Annual increase is reflected in the Income Statement
60,000

SSS and EC PAGIBIG

ER Share Contribution EE Share ER Share EE Share
1,230 1,830 300 300 600 225
810 1,210 198 198 396 149
810 1,210 198 198 396 149
810 1,210 198 198 396 149
3,660 5,460 894 1,789

Total Costs Useful Life Depreciation Acc. Dep-Year Book Value- Acc. Dep-Year
To OPEX 1 Year 1 2

50,000 10 5,000
20,000 10 2,000
70,000 7,000 7,000 63,000 14,000

45,000 5 9,000
10,000 5 2,000
10,000 5 2,000
5,000 5 1,000
27,500 10 2,750
20,000 5 4,000
117,500 20,750 20,750 96,750 41,500

12,000 5 2,400
4,000 6 667
15,000 5 3,000
4,500 5 900
35,500 6,967 6,967 28,533 13,933
223,000 34,717 34,717 188,283 69,433
Est. Unit Cost Total Cost

50,000 50,000
20,000 20,000
70,000

15,000 45,000
10,000 10,000
10,000 10,000
5,000 5,000
27,500 27,500
20,000 20,000
117,500

3,000 12,000
4,000 4,000
5,000 15,000
300 4,500
35,500
223,000

Total Cost
15,000
9,906
9,906
9,906
44,718

Total Cost

294,000

15,000
9,906
9,906
9,906
338,718

Total Cost
1,500
1,680
 3,180

UNIT COST TOTAL

Year 1 Year 2 Year 3
800.00 800 880.00 968.00
14,000.00 14,000 - -
140.00 140 140 140
1,010.00 1,010 1,010 1,010
288.60 289 288.60 288.60
50.00 50 50.00 50.00
150.00 150 150.00 150.00
500.00 500 500.00 500.00
215.00 215 -
100.00 100 -
30.00 30 30.00 30.00
400.00 400 400.00 400.00
3,500.00 3,500 3,500.00 3,500.00
21,183.60 6,948.60 7,036.60

Total Cost
24,000
24,000

Total Cost
30,000
30,000

Total Cost
24,000
24,000

Total Cost
10,000
10,000

Total Cost
48,000
48,000

VAT Payable
94,379
99,233
103,947
 Total SSS,
No. of PHIC, PAG-
ER Share PHILHEALTH Employees IBIG/yr
225 450 1 21,060
149 297 1 13,881
149 297 1 13,881
149 297 1 13,881
671 1,342 62,702 5225.13

Book Value- Acc. Dep-Year Book Value-

Year 2 3 Year 3

56,000 21,000 49,000

76,000 62,250 55,250

21,567 20,900 14,600

153,567 104,150 118,850
 Aging of
Note 17 Loans
Receivable

December November October

Php 10,000
October 1
November 2 2
December 3 3 3

Php 25,000 December November October

October 1
November 2 2
December 3 3 3

December November October September August July

Php 10,000 6 months
July 1
August 2 2
September 3 3 3
October 4 4 4 4
November 5 5 5 5 5
December 6 6 6 6 6 6
December November October September August July
Php 25,000
July 1
August 2 2
September 3 3 3
October 4 4 4 4
November 5 5 5 5 5
December 6 6 6 6 6 6
 Amortization
Total
Balance (See
Months Loan Releases per Month Loan Receivables
Amortization
Outstanding
Table)

20x1 20x2 20x3 20x1 20x2

1 14 15 16 3,333 46,667 50,000

4 14 15 17 6,667 93,333 100,000
9 14 15 17 10,000 140,000 150,000
- -
- -
- -
1 6 6 6 8,333 50,000 50,000
4 6 6 6 16,667 100,000 100,000
9 6 6 6 25,000 150,000 150,000
- -
- -
- -
- -
1 14 15 16 1,667 23,333 25,000
4 14 15 17 3,333 46,667 50,000
9 14 15 17 5,000 70,000 75,000
16 14 15 17 6,667 93,333 100,000
25 14 15 17 8,333 116,667 125,000
36 14 15 17 10,000 140,000 150,000
- -
- -
1 6 6 6 4,167 25,000 25,000
4 6 6 6 8,333 50,000 50,000
9 6 6 6 12,500 75,000 75,000
16 6 6 6 16,667 100,000 100,000
25 6 6 6 20,833 125,000 125,000
36 6 6 6 25,000 150,000 150,000
Receivable 1,595,000 1,650,000
Less: Allowance for Doubtful 31,900.00 33,000.00
Loan Receivable, net 1,563,100 1,617,000
Doubtful Expense 31,900.00 1,100.00
Receivables

20x3

53,333
113,333
170,000
-
-
-
50,000
100,000
150,000
-
-
-
-
26,667
56,667
85,000
113,333
141,667
170,000
-
-
25,000
50,000
75,000
100,000
125,000
150,000
1,755,000
35,100.00
1,719,900
2,100.00
Amortization Table

Php 10,000
@ 3 months
Total
Month Receivable Interest Principal Balance
0 10,000
1 3,583 250 3,333 6,667
2 3,583 250 3,333 3,333
3 3,583 250 3,333 -
Total 10,750 750 10,000

Php 25,000
@ 3 months
Total
Month Receivable Interest Principal Balance
0 25000
1 8,958 625 8,333 16,667
2 8,958 625 8,333 8,333
3 8,958 625 8,333 0
Total 26,875 1,875 25,000

Php 10,000
@ 6 months
Total
Month Receivable Interest Principal Balance
0 10000
1 1,917 250 1,667 8,333
2 1,917 250 1,667 6,667
3 1,917 250 1,667 5,000
4 1,917 250 1,667 3,333
5 1,917 250 1,667 1,667
6 1,917 250 1,667 -
Total 11,500 1,500 10,000

Php 25,000
@ 6 months
Total
Month Receivable Interest Principal Balance
0 25000
1 4,792 625 4,167 20,833
 2 4,792 625 4,167 16,667
3 4,792 625 4,167 12,500
4 4,792 625 4,167 8,333
5 4,792 625 4,167 4,167
6 4,792 625 4,167 0
Total 28,750 3,750 25,000