MGT 305 – ENTREPRENEURIAL MANAGEMENT

1st Semester AY 2021-2022

Names: Balmes, Cherry Jane SR Codes: 21-55066

Buisan, Christine D. 21-53006
Caseñas, Kathleen Dale B. 21-50517
Dionido, Andrea Marie C. 21-51200
Maullon, Nicole Anne G. 21-55140
Mendoza, Annabel B. 21-52962
Mendoza, Jireh Leigh B. 21-59808
Sebolino, Jonalyn M. 21-50352

Section: BSCA 1105

BUSINESS NAME: POTsitive

PRODUCT: Handmade pots

Chapter V
FINANCIAL PLAN

Total Project Cost

The Total Project Cost is the total amount of money required to accomplish the venture
or work, which includes fixed assets, direct materials, direct labor, factory overhead, and
administrative expenses. This involves any expenditures made or projected to be made, as well
as any financial obligations incurred or estimated to be incurred, to execute the job, which are
stated below for the POTsitive Total Project Cost for a month:

Total Project Cost - for One Month

Fixed Assets    
Office Equipment and Furniture 86,700.00  
Factory Equipment and Furniture’s 44,500.00  
Leasehold Improvements-Factory 16,000.00  
Total 147,200.00
Working Capital for One Month    
Direct Materials   110,000.00
Direct Labor   160,000.00
Factory Overhead    
Indirect Materials 285,430.00  
Rent Expense – Factory 6,000.00  
Utilities Expense – Factory 49,200.00  
Maintenance Expense – Factory 36,000.00  
Supplies – Factory 13,300.00  
SSS, Philhealth & Pag-ibig Contributions 23,400.00  
Total   413,330.00
Administrative Expenses    
Rent Expense – Office 5,500.00  
Utilities Expense Office 45,900.00  
Administrators' Salary 12,000.00  

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 SSS, Philhealth & Pag-ibig Contributions 23,400.00  
Supplies – Office 6,900.00  
Maintenance Expense office 30,700.00  
Legal Fees and Licenses 10,300.00  
Total   134,700.00
Selling Expense    
Delivery Expense 3,200.00  
Advertising Expense 10,000.00  
Total 13,200.00
Grand Total   978,430.00
Cash on Hand   678,430.00
Total Project Costs   1,656,860.00

Sources of Financing
Business always seeks sources of financing to grow the business. Funding, also called
financing represents an act of contributing resources to finance a program, project, or a need. In
case of business form of organization, the different sources of business finance which are
available may be categorized as given in organizational chart.

Sources of Financing

Internal External

Family and Friends Owner’s Capital Bank Loans Share Debentures

Retained Earnings Equity Share Public Deposits Factoring

Capital
Sales of Existing Assets Retained profit

Financial Assumptions

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 Financial Statements

2022 2023 2024 2025 2026

ASSETS

Current Assets
Cash 216,321.10 291,870.09 373,505.22 473,900.87 602,229.27

Supplies 147,200.00 147,200.00 147,200.00 147,200.00 147,200.00

Total Current Assets 363, 521.1 439,070.09 520, 705.22 621, 100.87 749, 429.27

Non-Current Assets
P.P.E 177,187.00 177,187.00 177,187.00 177,187.00 177,187.00
Less: Acc. 35,437.40 70,874.80 106,312.20 141,749.60 177,187.00
Depreciation
Total Non-Current 141, 749.6 106, 312.2 70, 874.8 35, 437.4 0.00
Assets
Total Assets 505, 270.7 545, 382.29 591, 580.02 656, 538.27 749, 429.27

Liabilities And
Partner's Equity
Liability
VAT Payable 0.00 0.00 0.00 0.00 0.00
Rent Payable 0.00 0.00 0.00 0.00 0.00
Income Tax Payable 9,253.32 51,198.48 94,074.23 139,167.15 187,483.93
Total Liabilities 9,253.32 51,198.48 94,074.23 139,167.15 187,483.93

Partner's Equity 20,000 20,000 20,000 20,000 20,000

Net Profit 21,591.08 56, 394.12 141,054.19 360,560.72 685,284.08

Total Partner's 41, 591.08 76, 394.12 161, 054.19 400, 560.72 705, 284.08
Equity
Total Liabilities and 50, 844.4 127, 592.6 255, 128. 42 539, 727.87 892, 768.01
Partners Equity

Income Statement

Particulars 2022 2023 2024 2025 2026

Net Sales 150,855.00 200, 565.00 256,987.00 297,845.00 325,895.00
Less: Cost of goods 50,233.00 75,342.00 96,953.00 100,000.000 110,934.00
sold

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Gross Profit 100,622.00 125,223.00 160,034.00 197,845.00 214,961.00
Less: Operating
Expenses
Selling Expense 30,440.00 23,435.00 49,423.00 59,754.00 63,000.00
Administrative 40,000.00 56,534.00 44,135.00 48,657.00 50,455.00
Expense
Total Operating 70,440.00 79,969.00 93,558.00 108,411.00 113,455.00
Expenses

Net Income 30,182.00 45,254.00 66,476.00 89,434.00 101,506.00

Statement of Cash Flow

2014 2015 2016 2017 2018

Cash Flow from
Operating Activities
Annual Cash Return 60,500.50 105,300.24 110,200.00 125,110.00 140,000.15
(Net Income + Dep.)
Add (Less)
Increase in Accounts (20,010.22) (10,220.00) (5,899.00) (5,000.00) (3,425.00)
Receivable
Increase in Inventory (18,019.00) (6,000.25) (3,215.00) (1,734.18) (1,847.00)
Increase in Accounts 15,655.65 3,800.00 2,550.00 1,320.70 1,875.00
Payable
Increase in VAT 8,945.00 5,324.00 3,000.00 5,700.00 2,7600.25
Payable
Net Cash Flow 87,092.37 98,203.99 106,636.00 125,396.52 164,203.4

Cash Flow from

Investing Activity
Acquisition of Fixed 50,225.60
Asset
Net Cash Used (50,225.60) - - - -

Cash Flow from

Financing
Initial Investment 200,00.00
Withdrawal (20,545.67) (22,655.00) (25,000.87) (31,220.16) (35,875.00)
Net Cash Provided 179,454.33 (22,655.00) (25,000.87) (31,220.16) (35,875.00)

Net Increase in Cash 216,321.10 75,548.99 81,635.13 100,395.65 128,328.40

Cash Balance Beg - 216,321.10 291,870.09 373,505.22 473,900.87
Cash Balance 216,321.10 291,870.09 373,505.22 473,900.87 602,229.27
Ending
Cash Allocated to - - - - -
Plant Expansion
Fund
Cash, Unrestricted 216,321.10 291,870.09 373,505.22 473,900.87 602,229.27
for use

Balance Sheet

Break Even Analysis

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