Chapter VI

Financial Study

This chapter examines the study's financial components in order for the business to determine
how much money it will require to get started. The researchers in this chapter project a financial
statement to assess whether the future industry will stay lucrative despite the presence of rivals and an
adverse economic climate. Furthermore, this chapter discusses the sources of funds, the balance sheet,
the income statement, and other financial statements which will be essential in proving whether the
business is feasible

6.1 Objectives of the study

6.2 Total Project Cost (all items considered consumption made)

Total project cost estimates the initial cost or asset required of the project, which must be based
on the materials, supplies, equipment, physical plant, and manpower requirements given in the previous
sections.

TOTAL PROJECT COST

A. Fixed Assets

Furnitures and Fixtures 7,140.00

Equipments 47,500.00

B. Working Capital 54,640.00

Initial loan capital 1,000,000.00
Utility expense 53407.20
Salaries expense 664,800.00
Transportation expense
Housekeeping supplies 7,080.00
Office Supplies 26,520.00
Fringe Benefits 64,559.00
Promotional expense 16,788.00
Depreciation
Rent expense
Maintenance and Repairs
C. Pre-operating Expense
Building Renovation
Registration, License and permits
Project Feasibility Study
SUB-TOTAL
CONTINGENCIES (5% OF A,B,C)
TOTAL PROJECT COST
6.3 Initial Capital Requirements (all items considered)

6.6.4 Net Present Value

6.6.5 Sensitivity Analysis, if possible