PWU-CDCEC CALAMBA

ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 35

Chapter 4

FINANCIAL ASPECT

FINANCIAL ASSUMPTIONS

1. The sales will increase by 1% annually.

2. Expenses for the raw materials, packaging and store supplies increase annually
with 1%.

3. Equipment, and Furniture and Fixture has a useful life of 5 years.

4. Salaries of the employees are increased by 1% annually.

5. The employees’ benefits which is the 13th month pay also increases 1% annually.

6. The utilities expense is assumed to increase by 2% annually.

INITIAL CAPITAL INVESTMENT

Partners Rate Contribution

Partner A 25% 325,000
Partner B 25% 325,000
Partner C 25% 325,000
TOTAL 75% 975,000

COST AND EXPENSE SCHEDULE

 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 36

Schedule 1
RAW MATERIALS
Ingredient Unit Quantity per Year Unit Price Annually
oat flour pack 15 312 4,680
baking soda pack 12 13 156
corn starch kilo 6 86 516
salt kilo 1 15 15
butter pack 13 53 689
banana kilo 40 60 2,400
brown sugar kilo 20 53 1,060
vanilla bottle 3 39 117
mini dark chocolate kilo 5 120 600
TOTAL         10,233

Schedule 2
PACKAGING
Particulars Unit Quantity per Year Unit Price Annually
plastic containers pack 15 450 6,750
TOTAL         6,750

Schedule 3
EQUIPMENT
Equipment Unit Quantity Unit Price Total
electric mixer pc 1 2,900 2,900
oven pc 1 15,000 15,000
TOTAL       17,900

Schedule 4
FURNITURE and FIXTURES
Furniture Unit Quantity Unit Price Total
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 37

working table pc 2 300 600
supply cabinet pc 1 350 350
wire racks pc 2 400 800
chairs pc 3 180 540
TOTAL       2,290

Schedule 5
KITCHEN TOOLS
Tools Unit Quantity Unit Price Total
mixing bowl pc 5 80 400
measuring spoons set 2 120 240
measuring cup set 2 250 500
chopping board pc 2 200 400
kitchen knife pc 3 200 600
rubber spatula pc 2 100 200
baking pan pc 7 280 1,960
cookies scoop set 2 160 320
TOTAL       4,620

Schedule 6
KITCHEN SUPPLIES
Supplies Unit Quantity Unit Price Total
apron pack (6s) 2 130 260
pot holder pc 10 45 450
hair net pack (12s) 1 25 25
plastic gloves box (100s) 10 73 730
TOTAL       1,465

Schedule 7
STORE SUPPLIES
Particulars Unit Quantity per Year Unit Price Annually
tissue pack 12 45 540
TOTAL         540
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 38

Schedule 8
OFFICE SUPPLIES
Supplies Unit Quantity Unit Price Total
ballpen box 1 55 55
bondpaper ream 1 165 165
calculator pc 2 130 260
stapler pc 2 32 64
staple wires box 3 10 30
scissors pc 2 12 24
LED light pc 3 150 450
TOTAL       1,048

Schedule 9
SANITARY SUPPLIES
Supplies Unit Quantity Unit Price Total
mop pc 2 115 230
broom pc 2 78 156
dust pan pc 2 60 120
dishwashing liquid liter 10 80 800
basin pc 2 35 70
sponge pc 6 20 120
trash can pc 3 135 405
trash bag pack 5 84 420
rag pc 20 2 40
TOTAL       2,361

Schedule 10
PREPAID RENT
Particulars Unit Quantity Unit Price Total
advance month 1 3,000 3,000
deposit month 2 3,000 6,000
TOTAL       9,000
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 39

Schedule 11
RENT EXPENSE
Particulars Unit Quantity Unit Price Total
rent month 12 3,000 36,000
TOTAL       36,000

Schedule 12
SALARIES and WAGES
Particulars No. Daily Monthly Total
kitchen staff 2 360 21,600 259,200
cashier 2 375 22,500 270,000

manager 1 390 11,700 140,400

TOTAL       669,600

Schedule 13
EMPLOYEES' BENEFITS
Particulars No. Daily Monthly Total
kitchen staff 2 360 21,600 21,600
cashier 2 375 22,500 22,500
manager 1 390 11,700 11,700
TOTAL       55,800

Schedule 14
UTILITIES EXPENSE
Particulars Monthly Annually
electricity 2,600 31,200
water 400 4,800
LPG 590 7,080
TOTAL 3,590 43,080
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 40

Schedule 15
MISCELLANEOUS EXPENSE
Particulars Quantity Unit Price Total
LPG tank 1 1,200 1,200
fire extinguisher 1 3,000 3,000
TOTAL       4,200

Schedule 16
ADVERTISING EXPENSE
Particulars Quantity Unit Price Total
flyers 800 5 4,000
TOTAL       4,000

Schedule 17
DEPRECIATION EXPENSE
Assets Total Amount Depreciation
Equipment 17,900 3,580
Furniture and Fixtures 2,290 458
TOTAL 20,190 4,038

Schedule 18
PERMITS AND LICENSES
Permits 2018 2019 2020 2021 2022
BIR registration 500 500 500 500 500
SEC registration 650 650 650 650 650
barangay clearance 300 300 300 300 300
Mayor's permit 1,500 1,500 1,500 1,500 1,500
business tax 1,300 1,300 1,300 1,300 1,300
garbage 3,000 3,000 3,000 3,000 3,000
sanitary 150 150 150 150 150
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 41

business permit sticker 40 40 40 40 40
business permit plate 200 200 200 200 200
fire protection permit 565 565 565 565 565
DTI 230 - - - -
3% percentage tax 37,800 38,178 38,560 38,945 39,335
TOTAL 46,235 46,383 46,765 47,150 47,540

PROJECTED DEMAND AND SALES

ANNUAL SALES
Product Price Quantity Produced Daily Annually
banana chocolate cookies 25 150 3,750 1,260,000
TOTAL         1,260,000

PROJECTED SALES
2018 1,260,000
2019 1,272,600
2020 1,285,326
2021 1,298,179
2022 1,311,161

STATEMENT OF COST OF GOODS SOLD

Year 2018 2019 2020 2021 2022

Add: Purchases          
Raw Materials 10,233 10,335 10,439 10,543 10,649
Total Goods Available
10,233 10,335 10,439 10,543 10,649
for Use
Add:          
Direct and Indirect
669,600 676,296 683,059 689,890 696,788
Labor
Packaging 6,750 6,818 6,886 6,955 7,024
Total Goods Available 676,350 683,114 689,945 696,844 703,813
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 42

for Sale
COST OF GOODS
686,583 693,449 700,383 707,387 714,461
SOLD

PROJECTED INCOME STATEMENT

Year 2018 2019 2020 2021 2022

Sales 1,260,000 1,272,600 1,285,326 1,298,179 1,311,161
Less: Cost of Goods
686,583 693,449 700,383 707,387 714,461
Sold
Gross Income 573,417 579,151 584,943 590,792 596,700
Less: Operating
         
Expenses
Kitchen Supplies 1,465 1,465 1,465 1,465 1,465
Office Supplies 1,048 1,048 1,048 1,048 1,048
Sanitary Supplies 2,361 2,361 2,361 2,361 2,361
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 43

Store Supplies 540 545 551 556 562
Rent Expense 36,000 36,000 36,000 36,000 36,000
Employees' Benefits 55,800 56,358 56,922 57,491 58,066
Utilities Expense 43,080 43,942 44,820 45,717 46,631
Miscellaneous
4,200 - - - -
Expense
Advertising Expense 4,000 4,000 4,000 4,000 4,000
Depreciation Expense 4,038 4,038 4,038 4,038 4,038
Permits and Licenses 46,235 46,383 46,765 47,150 47,540
Total Operating
198,767 196,140 197,970 199,826 201,711
Expense
Income Before Tax 374,650 383,011 386,973 390,966 394,989
Less: 30% Income
112,395 114,903 116,092 117,290 118,497
Tax
NET INCOME 262,255 268,108 270,881 273,676 276,493

PROJECTED CASH FLOW STATEMENT

Year 2018 2019 2020 2021 2022

Cash Beginning - 1,207,483 1,479,629 1,754,548 2,032,262
Partners'
975,000 - - - -
Contribution
Sales 1,260,000 1,272,600 1,285,326 1,298,179 1,311,161
Total Cash
2,235,000 2,480,083 2,764,955 3,052,727 3,343,423
Inflow
Less:          
Purchase of Fixed
24,810 - - - -
Assets
Purchase of Raw
10,233 10,335 10,439 10,543 10,649
Materials
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 44

Packaging 6,750 6,818 6,886 6,955 7,024
Prepaid Rent 9,000 - - - -
Kitchen Supplies 1,465 1,465 1,465 1,465 1,465
Office Supplies 1,048 1,048 1,048 1,048 1,048
Sanitary Supplies 2,361 2,361 2,361 2,361 2,361
Store Supplies 540 545 551 556 562
Rent Expense 36,000 36,000 36,000 36,000 36,000
Salaries and
669,600 676,296 683,059 689,890 696,788
Wages
Employees'
55,800 56,358 56,922 57,491 58,066
Benefits
Utilities Expense 43,080 43,942 44,820 45,717 46,631
Miscellaneous
4,200 - - - -
Expense
Advertising
4,000 4,000 4,000 4,000 4,000
Expense
Permits and
46,235 46,383 46,765 47,150 47,540
Licenses
Income Tax 112,395 114,903 116,092 117,290 118,497
Total Cash
1,027,517 1,000,454 1,010,407 1,020,465 1,030,630
Outflow
CASH
1,207,483 1,479,629 1,754,548 2,032,262 2,312,793
BALANCE END

PROJECTED BALANCE SHEET

ASSETS 2018 2019 2020 2021 2022

Current Assets          
Cash 1,207,483 1,479,629 1,754,548 2,032,262 2,312,793
Prepaid Rent 9,000 9,000 9,000 9,000 9,000
Total Current
1,216,483 1,488,629 1,763,548 2,041,262 2,321,793
Assets
Non Current Assets          
Equipment 17,900 17,900 17,900 17,900 17,900
Furniture and
2,290 2,290 2,290 2,290 2,290
Fixture
Kitchen Tools 4,620 4,620 4,620 4,620 4,620
Less: Accumulated
4,038 8,076 12,114 16,152 20,190
Depreciation
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 45

Total Non Current
20,772 16,734 12,696 8,658 4,620
Assets
TOTAL ASSETS 1,237,255 1,505,363 1,776,244 2,049,920 2,326,413

LIABILITIES
AND PARTNERS' 2018 2019 2020 2021 2022
EQUITY
Partner A, Capital 412,418 501,788 592,081 683,307 775,471
Partner B, Capital 412,418 501,788 592,081 683,307 775,471
Partner C, Capital 412,418 501,788 592,081 683,307 775,471
TOTAL
LIABILITIES
1,237,255 1,505,363 1,776,244 2,049,920 2,326,413
AND PARTNERS'
EQUITY

FINANCIAL RATIO

Return on Investment

Return on Investment = Net Profit

Investment

  2018 2019 2020 2021 2022

Net Profit 262,255 268,108 270,881 273,676 276,493
Investment 975,000 975,000 975,000 975,000 975,000
Return on Investment 0.27 0.27 0.28 0.28 0.28
Rate 27% 27% 28% 28% 28%

Gross Profit Margin

Gross Profit Margin = Net Profit

 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 46

Gross Income

  2018 2019 2020 2021 2022

Net Profit 262,255 268,108 270,881 273,676 276,493
Gross Income 573,417 579,151 584,943 590,792 596,700
Return on Investment 0.46 0.46 0.46 0.46 0.46
Rate 46% 46% 46% 46% 46%