Ginalyn Reyes

Activity 11 – Compute Your Start-Up Capital

How much Start Up Capital does the Baker need? How can he reduce the amount
he needs for start-up capital?

Compute the Start Up Capital by adding Bakery all the CASH OUT items from left to right
and classifying them into Direct/Indirect Costs and Equipment Costs.

DIRECT COSTS  
Direct Materials - Flour, Salt, Yeast 3,300
Direct Materials - Cake Mix, Butter, Choco 8,460
Direct Labor 2,500
Other Direct Costs - LPG for Oven 1,200
INDIRECT COSTS
Indirect Costs - Stationery 200
Indirect Costs - Fuel 1,000
EQUIPMENT
2nd Hand Oven 10,000K
START UP CAPITAL P26,660

The Start Up Capital will help make sure that the business will not run out of cash
in the first few months of the business’ life.

The Baker needs P30,00.00 start up capital for his Bakery business so he won’t ran out of
cash.If there’s a lot of demand he have an available cash.
He can reduce the amount he needs for start up capital by not hiring an assistant. Just a family
member to help.