Beri Fruit Juice

A Business Plan Presented to the Faculty of Senior High School

Accountancy, Business and Management (ABM) Department
Calaca Senior High School

In Partial Fulfillment of the Requirements for The K to 12

Enhanced Basic Education Curriculum

Cybell B. Carandang

May, 2021
INTRODUCTION

“Health is wealth” is the number one proverbs defined, as we need to take care of our
health because this is symbolizing as shield and armor of out body. Health is the mental and
physical condition of a person, it is the state of being free from sick and illness. Our body
requires a good health for us to become happy, based on the article of health and wealth
fitness. Being healthy individuals does not require lots of time to focus on. For you to have a
healthy body, prioritize to eat nutritious food and lend some time for the exercise.

Nowadays we are experiencing a virus, COVID- 19. Some teenagers did not know the
worth of being healthy and the importance of fruits and vegetables in their life. It is hard to
maintain a healthy body, but with the help of organic foods and fermented fruits that is fresh
from the tree, your healthy will boost and become strong all the time especially in this time of
pandemic. Consumer look for a very affordable food, drinks, home remedy, vitamins, or
organic juice or food to fight against COVID- 19 virus that has a very good quality that can
boost their immune system, and it doesn’t have any side effects to their parts of their body.
When people go in the market there are many new products introduce of different companies
for remedy in the viruses. Some of this product are the organic fruit juice and different foods for
our healthy body but some people did not know the ingredients behind that product.

This one is different; the Beri Company has a product that helps the consumer for
their health. This fruit is very helpful when a person is diabetic or having a problem in their
immune system because it is weak. Beri Fruit Juice not an ordinary juice, but lots of vitamins
and minerals can produce. It is like a taste and color of wine but this fruit juice is a pure organic
fruit. It is made of a fruit called Carissa Carandas that is a family of berry fruits. This fruit juice
form during 2010, when a person discovers that the fruit has a mysterious taste because we
have a tree of that fruit in our house, so we try to make a juice and make our own ingredients.
The consumer has a choice in the additional soda for the fruit juice, it is easy to find in the
market. With the help of the soda, the product become tastier like a true wine. The business
tries their best to fulfill the satisfaction of the customers. For the gallon or bottle of the Beri fruit
juice, the business selects the good quality of bottle for the fruit juice particularly not a
disposable one for the bottle. Good quality of bottle helps the product to be more presentable
in the market; it can catch the attention of the customers to try the product.
 The Beri Fruit Juice would help the consumer to boost their immune system and keep
their body become stronger and healthier at all times. A quality fruit juice is worth for its price, it
would give the needs and satisfaction of the customers.
 CHAPTER 1

STRATEGY AND BUSINESS MODEL

Some people are very conscious to their body; they want a slim and healthy body with
strong immune system at the same time. It is important to take care our health diet, with these
he business has its own way on how to identify their target market. Some of the employees
and experience to have a virus and other type of sick because of the weather. The Beri
Enterprise would have market, and malls as the point of distribution. The firm would supply the
Beri Fruit Juice particularly to the supermarket in Balayan, Batangas: Waltermart, Save it, and
even in BCC. The Beri Fruit Juice are still available in the physical store and would accept
orders and most especially during special occasions because kind of juice can be substitute to
wine.

Beri Enterprise would offer the seedlings as well as fruit juice of Carissa Carandas, 1-liter
bottles for the fruit juice with free seedlings. It offers also a bottle for the travelers, it doesn’t
need to buy a big bottle than what the business is offering as the proponent wanted t fulfill the
promise of the business that it would be hassle free bringing the fruit juice. Unlike other fruit
juice, it is not composed of powder or other food colors and artificial ingredients.

Beri fruit juice is a very quality product for all the people especially to the person
suffering from diabetes and other viruses. This can help to clean our organs from viruses and
also it is handy, you can bring this wherever you go. The business also have a gallon for fruit
juice for that consumer who wants more fruit juice stock in the house. The secret of this fruit
juice is the more it will stock, you can witness the tastiest fruit juice in the market.

Sales assumption is the project sales of a certain business. It can be computed daily,
weekly, monthly, and annually. It can be attained through computing for the unit of assumed
product sold and the selling price.

The sales assumption of Beri Enterprise is computed on a monthly and yearly basis for
five (5) years. On the fifth year (2026), there is a considerable increase on sales as the fir
would have additional products on sales such as different flavor of beri fruit juice and different
kinds of fruits.
 Table 4.1

Projected Sales

Year Monthly Annually

2020 P 80,000.00 P 960,000.00
2021 P 90,680.00 P 1,088,160.00
2022 P 108,550.00 P 1,302,600.00
2023 P 150,680.00 P 1,808,160.00
2024 P 190,280.00 P 2,283,560.00
 CHAPTER II

MARKETING PLAN

a. Product Description

Beri Enterprise would propose a fruit juice with a brand name of “Beri Fruit Juice”. Beri
Fruit Juice is an organic juice that has good effects in our body. It can help us to be
healthier, and it can clean our intestines and other internal parts of our body. It
symbolizes a shield of our immune system that can fight viruses came from our body.
The fruit juice will have offered in bottle. The size of the container depends of the wants
of the customers. It has a good quality and very tasty juice.
Beri Fruit Juice keep their promise to the consumer a very high quality of juice.
High quality because it is a natural fruit juice came from the own tree of the business
and the ingredients is composed of organic sugar and soda that is available in the
market.

Figure 6.1
Beri Fruit Juice Product
b. Branding

Branding is the promotion of a particular product or company by means od

advertising and distinctive design. It is the creation and development of the company’s
brand: the logo, images, slogan, ideas, and other information connected to your
company or product.
Branding is what makes your company recognizable and unique.

The proponents’ fruit juice product would be launched in the market under the
brand name of “Beri Fruit Juice”. The proponent came up with the brand name that is
connected to her middle name. She wanted her customer remember her by with the use
of her middle name which is “Beri” that sounds like a berry fruit because she wanted the
consumer to remember the her especially the product made of the business. From the
name itself, the customer easily remember that it is a organic fruit juice. It’s the Beri fruit
juice the thirst quencher of the people not only for thirsty, but also for health and body. It
describes the importance of berries in our body

Figure 6.2 Figure 6.3

Brand name Company Logo

c. Packaging

The purpose of packaging the product is to protect it from possible damages. It must
keep the product during shipment between the manufacturing facility and the retailer
and must prevent damage while the product sits on the shelf. Therefore, the product
packaging must be reliable. Moreover, it will contribute to the attraction of the product.
 The packaging of the Beri Fruit Juice is a unique container made with high quality
plastic gallons and bottles. To assure the cleanliness authenticity of the product, the
container has a sealed in a cup to prevent from dust and other smudges inside. In
addition, the container has a handle for easy carrying of the consumer. All packaging
that can be use is recyclable. In that way, the company can promote a good corporate
social responsibility in responding to the la mandated by the local government wherein
the business would have established regarding the prohibition of using plastics in the
locality. It can lessen the garbage’s that can cause pollution in the environment. This
container can help to conserve our environment. The logo of the brand name would be
printed in the front of the bottle.

Figure 6.4
Packaging

d. Pricing

Cost- based Pricing

Cost- based pricing shall be utilizing by Beri Enterprise wherein the basis of the markup
cost of sales. The selling price of the product is Php 198.00. The mark-up percentage is 30%,
which is commonly used in business industry today.
 Table 6.1

Price Scheme

Manufacturing Cost Price (Php) per unit

Direct Material Cost/Unit 90
Labor Cost/Unit 27.00
Factory Overhead/Unit 35.00
Total Cost/Unit 152
Mark-Up (30%) 45.6
Selling Price-Consumers
197.6 or 198
(VAT Exc)

e. Direct Competitor’s Price

Competitive pricing knows the price of the direct competitors in order to take
advantage with the competitors. It is also the process of selecting strategic price points
to take best advantage of a product-based market relative to competition.

Table 6.2
Direct Competitor’s Price

Retailer Fruit Juice

BCC 210.00
Walter Mart 250.00
Save it 210.00
Public Market 200.00
 Table 6.3
Direct Competitor’s Price (Online)

Retailer
Fruit Juice (Soda)
Lazada 300.00
Shopee 235.00
Pasabuy 210.00

f. Channel of Distribution

Channel of distribution or called, as intermediaries are the bridge on how the product
would reach the target market of the business. Those intermediaries are the wholesalers and
the retailers; they are also a business, which will sell the product in order for the product to
reach the end users.

The Beri Enterprise would utilize the one-level channel of distribution wherein from the
firm; it would pass through the Wholesaler before the product reach the end user.

Manufacturer/Producer Wholesaler

Final/End User

Figure 6.5
Distribution Channel
 g. Promotion

Promotion is the process or act done by the business to advertise the product to be sold. It also
refers to an advertisement done to make people aware of the business and increase sales and
popularity.

Promotion Mix
Promotion mix is included in the 4P’s of the marketing mix, which are people, price, promotion
and place. It includes the marketing, advertising, public relations, keeping loyal customers, building
good relationships with the customers and sales promotion.

Table 6.4
Promotional Mix Strategies
WHAT WHO WHEN WHERE HOW BUDGET
Facebook Proponen Two weeks Facebook Created by the business to be None
before the noticed by the customers online.
Page t actual
introduction of
the product
Flyers Proponen 3 days before Malls and To be given and distributed to the Php1,500
500 units
the actual customers all over Balayan,
Public Market Php3.00/unit
t introduction of Batangas and Calaca, Batangas
the product. Included are all the information
about the business.
Trade Fair Proponen On the actual Malls and Sample products made and have Php6,240
30 units
day of a 50% discount to the first 50
Php208.00/unit
t introduction of public customer on the product.
the product. market.
Tarpaulin Proponen One week Within the vicinity It should be placed in the street Php1,500
5 units
before the of the public where many people are passing
Php300.00/unit
t actual market. by for them to known the product.
introduction of
the product.

In this generation, technology performs a big role in the life of the people. This
is an advantage for our company to introduce and use a social media to promote our
product, for them easily recognize it and they can share it to other people. ICT
technique can help our company to voice out the importance of our product. The
business did not have no lend so much money in this type of advertisement because it
is free to make our own page than availing an advertisement in the social media.
Although the business still use money in this advertisement because of the internet
connection to be used. One strategy of the business in advertising the product is through
making and giving flyers to the consumers, because this is a common doing of the new
 exist product in the market. Being resourceful in promoting the product can lead the
business in success.

CBC Marketing utilized by the business because they would sell products
around Balayan and Calaca, particularly in the supermarkets of this municipality. E-mail marketing
would have adopted by the business because through e-mail they can communicate and
negotiate faster aside from face-to-face negotiation, especially in this time of pandemic. The
resellers and consumers easily contact our company or they can visit our Facebook page for more
information regarding to our product.

As the business grows and expand in succeeding years, the business can
afford an advertisement in the social media particularly on Facebook. This strategy can encourage
more the consumer to avail in our product.

Figure 6.6

Facebook page

Figure 6.6

Flyers
 CHAPTER III

TECHNICAL/OPERATIONAL PLAN

Manufacturing Process
Manufacturing is the process done by companies to produce tangible products. It is
the systematic process in creating the product. It begins with the product design, and
materials specification from which the product is made. Beri Enterprise is a
manufacturing enterprise; thus they would do the manufacturing of fruit juice.

a. Production Process

1. Preparation of materials needed. The materials needed would be prepared.

The Carissa Carandas fruit, blender, sugar, soda, measuring cup, and funnel. It
would consume 5 minutes.

2. Wash the fruit. To remove the dust, pesticides, and other

insects in the fruits we need to wash it for the safety of the consumers.

3. Ready to squeeze. Put the fruit in the blender

 1. Mixing. Transfer the fruit juice into a container. Put the 2 cups of sugar in the
juice and stir.
2. Add some flavor. If the consumer wants to add some taste and flavor, we can
add a soda.
3. Finishing and Quality Control. It is the finishing and finalizing of the product.
Removal of the excess smudges in the product. This is to make sure that the
product is in a good condition when released in the market. It would consume 1
minute, the Beri fruit juice is ready to serve.
4. Packaging. The final product shall put inside a plastic bottle packaging. For the final

packaging, the product will properly sealed. It would consume 5minutes.

5. Cleaning. The cleaning of the area and the materials used in manufacturing the

product. It would consume 10 minutes.

b. Process Flowchart

Preparation Wash the fruit Ready to squeeze

(5 minutes) (1 minute) (20 minutes)

Mixing
Add some flavor
(5 minutes)
(1 minute)

Repeat the process until 15

Finishing and Repeat the
units were made
Quality Control process until 5
Lunch Break units were
(5 minutes) 12:00pm- 1:00pm made.

- Labor

Cleaning Packaging
(10 minutes) All workers
All workers (60 minutes)
 - Quality control

c. Production Schedule

The working hours of the business would be eight hours starting from 7am to 4pm. The allotted

hour for the lunch break would be I hour from 12 noon up to 1pm. Work will resume at 1pm in the

afternoon. Working days would be Monday to Friday and the workers shall finish 20 units per day.

Table 7.1
Production Schedule (In Units)

Year Daily Weekly Monthly Annually

2021 20 100 400 4,800
2022 23 115 460 5,520
2023 26 130 520 6,240
2024 28 140 560 6,720
2025 33 165 660 7,920

Table 7.1 shows the production schedule in units of Beri Enterprise. During the first year of the
business, it will produce 20 units daily and 4,800 annually. The business increase their production by
15% annually and expects to produce 7,920 units of Beri Fruit Juice in 2025.

a. Cost Assumption

Cost assumption is the projected cost or expenditure used to produce the product. It includes direct
materials, indirect materials, utilities expense, salary expense, rent expense and delivery expense. 7.1
shows the production schedule in units of Beri Enterprise. During the first year of the business, it will
produce 20 units daily and 4,800 annually. The business increase their production by 15% annually and
expects to produce 7,920 units of Beri Fruit Juice in 2025.
The cost assumption for the year 2021 is P 1,044,000 while for the next year, 2022, the cost
assumption is P1, 171,200.00. For the third year, 2023, the cost assumption is P1, 417,200.00 and for
the year 2024, the cost assumption is P1, 489,200.00. For the last year, which is 2025, the cost
assumption is P1, 694,400.00.
 Table 7.2
Cost Assumption

Year Monthly Annually

Direct materials: P 30,000.00 P 1,044,000.00
Indirect Materials: 14,000.00
Utilities Expense: 5,500.00
2021 Salary Expense: 29,000.00
Rent Expense: 7,000.00
Delivery Expense: 1,500.00
Total: P 87,000.00
Direct materials: P 40,500.00 P 1,171,200.00
Indirect Materials: 15,100.00
Utilities Expense: 4,000.00
2022 Salary Expense: 29,000.00
Rent Expense: 7,000.00
Delivery Expense: 2,000.00
Total: P 97,600.00
Direct materials: P 55,600.00 P 1,417,200.00
Indirect Materials: 18,500.00
Utilities Expense: 5,000.00
2023 Salary Expense: 29,000.00
Rent Expense: 7,500.00
Delivery Expense: 2,500.00
Total: P 118,100.00
Direct materials: P 57,000.00 P 1,489,200.00
Indirect Materials: 19,600.00
Utilities Expense: 5,500.00
2024 Salary Expense: 32,000.00
Rent Expense: 7,500.00
Delivery Expense: 2,500.00
Total: P 12,100.00
Direct materials: P 70,600.00 P 1,694,400.00
Indirect Materials: 22,100.00
Utilities Expense: 5,500.00
2025 Salary Expense: 32,000.00
Rent Expense: 8,000.00
Delivery Expense: 3,000.00
Total: P 14,200.00

b. Plant Location

The place where the business would be located, but the choice is made only after considering cost
and benefits of different alternative sites. Having a good business location is an advantage for the
business; it will lead the consumer to our product. Beri Enterprise would be located at Caybunga,
Balayan, Batangas. It is near in the Brgy. Hall of Caybunga, Balayan.
 Brgy. Hall of National
Caybung, Balayan Road

Figure 7.2

Location
c. Plant Layout

Plant layout design is an important consideration before deciding to build the actual

place of the business. It should be properly analyzed as it involves the estimated cost

for the structure. The layout and design should carefully consider also the place of the

machines and equipment as it contributes to the productivity of the worker if properly

placed.
 Figure 7.3
Plant Layout
d. Tools and Equipment

The tools and equipment are the needed materials to produce the proposed product. It
should also be taken care of and properly stored after use.
Table 7.3
Production Tools and Equipment

Unit Cost Total Cost

Item Specification Quantity
(Php) (Php)
Oster 8- speed
blender
1.25ml
Heat resistant glass
jar
Juicer and
All-metal drive 3 units P 12,800.00 P 38,400.00
blender
system
450watts
Blender shaker
Grinder
Food chopper
Funnel Detachable Funnel 3 pcs. P 111.00 P 333.00
Measuring cap Jug pour spout 3 pcs. P 87.00 P 261.00
Quality bottle 1 liter 50 pcs. P 100.00 P 5,000.00
Total P 43,994.00

e. Production Plant Furniture

This furniture’s would help the workers during the manufacturing of the product.
Table 7.4
Production Plant Furniture

Unit Cost Total Cost

Item Specification Quantity
(Php) (Php)
Light folding
Working Table commercial 4 P 1,300.00 P 5,200.00
table 4ft.
Ruby
Monoblock
(made of plastic 4 P 269.00 P 1,076.00
Chairs
and durable)
Storage
Glass cabinet 2 P 3,500.00 P 7,000.00
Cabinet
Total P 13,707.00
 a. Office Furniture and Equipment

Table 7.5
Office Furniture and Equipment
Unit Cost Total Cost
Item Specification Quantity
(Php) (Php)
Computer Set Dell 1 unit P 41,080.00 P 41,080.00
Printer Epson L120 1 unit P 4,850.00 P 4,850.00
Air-conditioning Split type Carrier
1 unit P 25,495.00 P 25,495.00
unit 1.5HP
Sofa Stretchable Washable 1 unit P 1,500.00 P 1,500.00
Manager’s Alverstone heavy
1 unit P 4,600.00 P 4,600.00
Table duty
made of glass with
Cabinet lock and key steel 1 unit P 3,000.00 P 3,000.00
support
Office Chair #3060 1 unit P 1,300.00 P 1,300.00
Ruby
Monoblock
(made of plastic and 6 units P 269.00 P 1,614.00
Chair
durable)
Fire
Rhino 1 unit P 2,200.00 P 2,200.00
Extinguisher
Total P 85,639.00

a. Office Supplies

These are materials needed to operate the business. These are all used for paper works and filing
of necessary documents for the operation of the business. It makes the office works neat and
organized.
Table 7.6
Office Supplies

Unit Cost Total Cost

Item Specification Quantity
(Php) (Php)
Short bond
Hard copy ultrawhite 1 ream P 138.00 P 138.00
paper
A4 bond paper Hard copy ultrawhite 1 ream P 170.00 P 170.00
Long bond
Hard copy ultrawhite 1 ream P 172.50 P 172.50
paper
Stapler HBW (heavy duty) 1 pc. P 400.00 P 400.00
Staple Wire HBW #35 1 box P 50.00 P 50.00
Short Envelope Classic 5 pcs. P 7.00 P 35.00
 Long envelope Classic 5 pcs. P 10.00 P 50.00
Short folder Classic 5 pcs. P 6.00 P 30.00
Long folder Classic 5 pcs. P 7.00 P 35.00
Ballpen Panda (Black) 1 box P 213.00 P 213.00
Marker Pilot Fine (Black) 5 pcs. P 35.00 P 175.00
Pencil Monggol No. 2 1 box P 59.00 P 59.00
Puncher HBW 1 pc. P 216.00 P 216.00
Fastener HBW 1 box P 30.00 P 30.00
Scissors HBW 3 pcs. P 20.00 P 60.00
Glue Elmer’s 2 pcs. P 41.50 P 83.00
Tape 3M 3 pcs. P 25.00 P 75.00
Calculator Acasia 2 pcs. P 165.00 P 330.00
Journal Book Valiant Columnar 10
5 pcs. P 35.00 P 175.00
Columns 200 leaves
Record Book Valiant 300 leaves 3 pcs. P 40.00 P 120.00
Receipts Acacia 10
P 15.00 P 150.00
booklets
Total P 2,276.50
(Source: Shopee and Lazada)

b. Maintenance Supplies

These are supplies in keeping the cleanliness of the business area. It would also aid in maintaining
housekeeping especially in the production area.
Table 7.7
Maintenance Supplies
Unit Cost Total Cost
Item Specification Quantity
(Php) (Php)
Broom Baguio 2 pcs. P 90.00 P 180.00
Dustpan Made of plastic 2 pcs. P 15.00 P 30.00
Mop Microfiber mop 1 pc. P 295.00 P 295.00
Small 10 pcs. P 3.00
Rug P 80.00
Doormat 2 pcs. P 25.00
Trash Bin Greenhome 3 pcs. P 68.00 P 204.00
Dishwashing
Maxxglow 3 pcs. P 50.00 P 150.00
Liquid
Sponge Scotchbrite 3 pcs. P 25.00 P 75.00
Garbage Bag #0052 small 5 pcs. P 25.00 P 125.00
Dipper 601BTHP48 2 pcs. P 10.00 P 20.00
 Orocan with
Pail metal handle 2 pcs. P 90.00 P 180.00
12L
Total P 1,339.00
(Source: Balayan market and Lazada)
c. Direct Materials

Table 7.8
Direct Materials

Unit Cost Total Cost

Item Specification Quantity
(Php) (Php)
Sugar Victoria 100 kilo P 45.00 P 4,500.00
Soda Sprite 100 P 90.00 P 9000.00
Water Purified 10 gallon P 25.00 P 250.00
Total P 13,750.00

d. Indirect Materials

Table 7.9
Indirect Materials

Unit Cost Total Cost

Item Specification Quantity
(Php) (Php)
Detachable
Funnel 50pcs. P 111.00 P 5,550.00
funnel
Measuring cap Jug pour spou 40 pcs. P 87.00 P 3,480.00
Bottle Quality bottle 50.00 P 100.00 P 5,000.00
Total P 14,030.00

e. Utilities Expense

Table 7.10
Utilities Expense
 Monthly Annual Consumption
Utilities Consumption (Php)
(Php)
Electricity P 3,000.00 P 36,000.00
Water (water pump) P 500.00 P 6,000.00
Telecommunication
P 500.00 P 6,000.00
(Globe)
Internet Connection
P 1,500.00 P 18,000.00
(globe )
Total P 5,500.00 P 66,000.00

f. Direct Labor Requirement

Table 7.11
Direct Labor Requirement
Job Daily Monthly Annually
No. of Workers
Description (Php) (Php) (Php)
Worker 1 1 P 356.00 P 7,300.00 P 87,600.00
Worker 2 1 P 356.00 P 7,300.00 P 87,600.00
Worker 3 1 P 356.00 P 7,300.00 P 87,600.00
Manager 1 P 400.00 P 8,000.00 P 96,000.00
Total P 358,800.00
(Source: Department of Labor and Employment)

g. Leasehold Improvement

Table 7.12
Leasehold Improvement
Item Description Quantity Unit Cost (Php) Total Cost (Php)
Plywood 21 pcs. 258 5,418.00
Wood 42 pcs. 163 6,846.00
Nails 1” 1 ½ kilo 80 120.00
Nails 2” 1 ½ kilo 120 120.00
Nails 3” 1 ½ kilo 100 150.00
Paint 35 liters 176 6,160.00
Paint Rollers 4 pcs. 65 260.00
Paint Brush 4 pcs. 25 100.00
Light 4 pcs. 150 600.00
Switch 4 pcs. 35 140.00

Labor 3 workers 1,800.00

600/day
(Carpenter)
Labor 3 workers 450/day 1,350.00
 (Assistant)
Cement 1 pc. 220 220.00
Floor Tiles 60 pcs. 24 1,440.00
Total 24,724.00
(Source: Robinson’s Builders, Ace Hardware)

Table 7.13
Rent Expense

Rent Total Cost (Php)

Monthly 5,000.00
Annually 60,000.00

CHAPTER IV

FINANCIAL PLAN
 A financial plan is a comprehensive picture of your current finances, your financial goals
and any strategies you’ve set to achieve these goals. Having a good financial planning should
include the detail of your cash flow, savings, debt, investments, insurance and any other
elements of your financial life. (Nerdwallet)
A financial plan is an assessment of the financial aspects of a certain business. It
considers many things including expenses and revenues, assets and liabilities and cash in
cash out. (Rawas, 2017)

Table 4.1
Total Project Cost

Pre Operating Expenses  

Taxes and Licenses 5,375.00
Rent Security Deposit 10,000.00
Advertising Expense 9,240.00
Fixed Assets  
Production Plant Tools, Equipment and Supplies 43,994.00
Production Plant Furniture 13,707.00
Office Furniture and Equipment 85,639.00
Leasehold Improvement 24,724.00
Working Capital for Two Months  
Direct Materials 13,750.00
Direct Labor 358,800.00
Factory Overhead  
Indirect Materials 14,030.00
Delivery Expense 3,000.00
Utilities Expense 66,000.00
Depreciation expense 1,633.66
Office Supplies 2,276.50
Maintenance Supplies 1,339.50
SSS, Pag-ibig, PhilHealth Contribution 8,862.00
Administrative Expense
Salary Expense 32,000.00
Total 665,770.66
Cash for Contingencies 124,337.20
Total Project Costs 789,907.86

a. Financial Statement
Financial statements are report that depict financial and accounting information relating to
business. A company’s management uses it to communicate with external stakeholders. These
include shareholders, tax authorities, regulatory bodies, investors, creditors. (Toppr, 2018)

1. Statement of Financial Performance

Table 4.1
Lean On Me Enterprise
Projected Statement of Financial Performance
For the Year Ended December 2020-2024

2021 2022 2023 2024 2025

Sales 690,000.00 1,088,160.00 1,302,600.0 1,808,160.00 2,283,560.00
0
Less: Cost of 580,000.0
100,000.00 400,800.00 560,000.00 620,000.00
Sales 0
Gross Profit 590,000.00 687,360.00 722,600.0 1,248,160.00 1,663,560.00
0
Less:
Operating
Expense
Selling
250,400.50 275,800.00 285,445.10 298,000.00 300,300.40
Expense
Administrativ
200,072.00 210,700.50 216,500.70 222,100.80 230,200.00
e Expense
Total
Operating 450,472.50 486,500.50 501,945.80 520,100.80 530,500.40
Expenses
Net Income 139,527.50 200,859.50 220,654.20 728,059.20 1,133,059.60

2. Statement of Financial Position

Table 4.2
Lean On Me Enterprise
Projected Statement of Financial Position
For the Year Ended December 2020-2024
 2021 2022 2023 2024 2025
Assets
Current 2. C
Assets
Cash 400,000.00 489,600.50 650,550.20 890,700.10 1,300,900.20
a
Accounts
200,500.00 220,818.12 250,000.30 280,500.60 300,000.00
Receivable
Prepaid Rent 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 s
Total Current 1,181,200.7
610,500.00 720,418.62 910,550.50 1,610,900.20
Assets 0 h
Non-current
Assets
Equipment 133,033.00 133,033.00 133,033.00 133,033.00 133,033.00
Less:
Accumulated (1,633.66) (3,267.32) (4,900.98) (6,534.64) (8,168.30)
Depreciation
Leasehold
24,724.00 24,724.00 24,724.00 24,724.00 24,724.00
Improvement
Less:
Accumulated (3,700.50) (5,500.00) (7,800.00) (9,500.40) (12,400.00)
Depreciation
Total Non-
Current 152,422.84 148,989.68 145,056.02 141,721.96 137,188.70
Assets
Total Assets 1,322,922.6
762,922.84 869,408.30 1,055,606.52 1,748,088.90
6
Liabilities and
Owner’s
Equity
Current
Liabilities
Accounts
35,00.00 30,100.00 37,800.00 31,400.00 42,000.00
Payable
SSS, Phil
health, and
8,862.00 3,137.30 3,283.30 3,420.80 3,558.30
Pag-Ibig
Payable
Total Current
43,862.00 33,237.30 41,083.30 34,820.80 45,558.30
Liabilities
Equity
Owner’s 1,084,361.8
549,799.68 664,106.69 842,564.76 1,506,215.41
Capital 5
Total Owner’s 1,084,361.8
549,799.68 664,106.69 842,564.76 1,506,215.41
Equity 5
Total
Liabilities and 1,119,182.6
593,661.68 697,343.69 883,648.06 1,551,773.71
Owner’s 5
Equity
Flow Statement

Table 4.3
Lean On Me Enterprise
Cash Flow Statement
For the Year Ended December 2020-2024
 2021 2022 2023 2024 2025
Cash Flow
From
Operating
Activities
Cash Inflow
Net Income 139,527.50 200,859.50 220,654.20 728,059.20 1,133,059.60
Depreciation
5,334.16 8,767.32 12,700.98 16,035.04 20,568.30
Expense
Increase in
Accounts 3,500.00 4,000.00 2,500.00 6,000.00
Payable
Increase in
SSS, Phil
2,500.00 550.20 145.00 130.50 125.50
health and EC
Payable
Net Cash
Inflow from
131,693.34 188,041.98 216,509.20 709,393.66 1,106,365.80
Operating
Activities
Cash Outflow
Increase in
(10,000)
Prepaid Rent
Net Cash
Outflow from
(10,000)
Operating
Activities
Net Cash
Generated
from 121,693.34 188,041.98 216,509.20 709,393.66 1,106,365.80
Operating
Activities
Cash Flow
from Investing 40,500.40 35,200.10 29,800.70 25,600.80 15,450.40
Activity
Cash Outflow
Acquisition of
(146,740.00)
Fixed Asset
Leasehold
(24,724.00)
Improvement
Net Cash
Outflow from
(171,464.00)
Investing
Activities
Net Cash
Generated
(171,464.00)
from Investing
Activities
Cash Flow
from
Financing
Activities
Cash Inflow
Initial
Investment 789,907.86
Net Cash
Inflow from
Financing 789,907.86
Activities
Cash Outflow
Withdrawals by
(32,500.00) (40,000.00) (43,500.00) (46,000.00) (50,400.00)
owner
Net Cash
Outflow from
(32,500.00) (40,000.00) (43,500.00) (46,000.00) (50,400.00)
Financing
Activities
Net Cash
Generated
from 757,607.86 (40,000.00) (43,500.00) (46,000.00) (50,400.00)
Financing
Activities
Net Increase
in Cash and
400,000.00 201,350.40 160,900.00 250,100.10 450,380.80
Cash
3. Statement of Changes in Owner’s Equity

Table 4.4
Lean On Me Enterprise
Statement of Changes in Owner’s Equity
For the Year Ended December 2020-2024
 2021 2022 2023 2024 2025
Capital
Balance, 549,799.68 664,106.69 842,564.76 1,084,361.85
Beginning
Initial
Investment 789,907.86
Add: Net 139,527.50 200,859.50 220,654.20 728,059.20 1,133,059.60
Income
Total Capital 929,635.36 750,659.18 884,760.89 1,570,623.69 2,217,421.45
Less:
(32,500.00) (40,000.00) (43,500.00) (46,000.00) (50,400.00)
Withdrawal
Owner’s
Capital, 896,935.36 710,659.18 841,260.89 1,524,623.69 1,167,021.45
Ending

2. Financial Analysis

A financial analysis is an assessment of how viable, stable, solvent, and profitable a business
project is.
1. Liquidity Ratio
 Current Ratio

Current Ratio = Total Current Assets

Total Current Liabilities

Table 4.5
Current Ratio
Current
Year Current Assets Ratio
Liabilities
2021 610,500.00 43,862.00 13.92
2022 720,418.62 33,237.30 21.68
2023 910,550.50 41,083.30 22.16
2024 1,181,200.70 34,820.80 33.92
2025 1,610,900.20 45,558.30 35.36

 Quick Ratio

Quick Assets Ratio = Quick Assets

Current Liabilities

Table 4.5
Current Ratio
Current
Year Quick Assets Ratio
Liabilities
2021 600,500.00 43,862.00 13.69%
2022 710,418.62 33,237.30 21.37%
2023 900,550.20 41,083.30 21.92%
2024 1,171,200.70 34,820.80 33.64%
2025 1,600,900.20 45,558.30 35.14%
 Working Capital

Working Capital = Current Assets – Current Liabilities

Table 4.5
Working Capital

Year Current Assets Current Working Capital

 Liabilities
2021 610,500.00 43,862.00 566,638.00
2022 720,418.62 33,237.30 687,181.32
2023 910,550.50 41,083.30 869,467.20
2024 1,181,200.70 34,820.80 1,146,379.90
2025 1,610,900.20 45,558.30 1,565,341.90
 Gross Profit margin

Gross Profit Margin = Gross Profit

Net Sales

Table 4.6
Gross Profit Margin
Year Gross Profit Net Sales Ratio
2021 590,000.00 690,000.00 86%
2022 687,360.00 1,088,160.00 63%
2023 723,120.00 1,302,600.00 56%
2024 1,248,160.00 1,808,160.00 69%
2025 1,663,560.00 2,283,560.00 73%
 Net Profit Margin

Net Profit Margin = Net Income

Net Sales

Table 4.7
Net Profit Margin
Year Net Income Net Sales Ratio
2021 139,527.50 690,000.00 20%
2022 200,859.50 1,088,160.00 18%
2023 220,654.20 1,302,600.00 17%
2024 728,059.20 1,808,160.00 40%
2025 1,133,059.60 2,283,560.00 50%
 Rate of Return on Equity

Return on Equity = Net Income

Owner’s Equity

Table 4.8
Return on Equity
Year Net Income Owner’s Equity Ratio
2021 139,527.50 549,799.68 25%
2022 200,859.50 664,106.69 30%
2023 220,654.20 842,564.76 26%
2024 728,059.20 1,084,361.85 67%
2025 1,133,059.60 1,506,215.41 75%
 Debt Ratio

Debt Ratio = Total Liabilities

Total Assets

Table 4.9
Debt Ratio

Year Total Liabilities Total Assets Ratio

2021 43,862.00 762,922.84 6%
2022 33,237.30 869,408.30 4%
2023 41,083.30 1,055,606.52 4%
2024 34,820.80 1,322,922.66 3%
2025 45,558.30 1,748,088.90 3%
 Payback Period

Debt Ratio = Initial Investment

Annual Cash Flow

Table 4.10
Payback Period

Initial Annual Cash Payback

Year Balance
Investment Flow Period
2021 789,907.86 357,407.86 432,500.00 2
2022 - 479,566.48 -47,066.48 0.90

Table 4.10 shows the payback period invested capital. The business can recover its
invested capital in two (2) years and 11months