Republic of the Philippines

Department of Education
Region III
Schools Division of Nueva Ecija
NUEVA ECIJA SENIOR HIGH SCHOOL
Llanera Street, Quezon District, Cabanatuan City,
Nueva Ecija, 3100

Title: “Cab Cake Studio: Efficiency and Effectivity of Marketing Strategy through Social Media”
Submitted by:

Zyanelle S. Taculad

Emmalyn Clamonte

Shyla R. Angeles

Hannah Gray Flores

Karylle Alyanna Domingo

Blessy Maniquis

Reylyn Joy Caranguian

Diana Rose Calderon

Eldrian Estrella
 Submitted to:

Jhoesa Dela Cruz Cabanding

CHAPTER VI

FINANCIAL STUDY
6.1 ASSUMPTION OF UNDERLYING COST

1. Sales increase by 10% per year.

Total sales are composed of 100% cash on
2. sales.
3. Sales returns and allowances are estimated at 2% of total sales.
4. Purchases increase by 10% per year.
5. Merchandise Inventory end is estimated at 10% of the total cost of goods
Permits and licenses will increase by 10% starting in year
6. 2.
Office supplies, electricity, water, and
7. transportation
expenses will increase by 10% per
year.
Repair and maintenance will start in year 2. This will increase by 10% per
8. year.
9. Depreciation is computed using the straight-line method.
10. Salvage value is estimated at 10% of the acquisition cost.
11. Income tax for the year will be paid the following year.

6.2 TOTAL PROJECT COST

 TOTAL PROJECT COST

Fixed Assets/ Capital Investments

Machines 125,000.00
Transportation Vehicles 85,000.00
Equipment 75,000.00

Sub-Total 285,000.00
Add: contingency (10%) 28,500.00 313,500.00
Pre-Operating & Operating Expenses
Permits and licenses 3,000.00
Purchases - Mdse Inventory 10,521.00
Office supplies 1,000.00
Sub-Total 14,521.00
Add: contingency (10%) 1,452.10 15,973.10

TOTAL PROJECT COST 329,473.10

Fixed Assets/ Capital Investments

Machines 125,000.00
Transportation Vehicle 85,000.00
Equipment 75,000.00

Pre-Operating Expenses
Permits and licenses 3,000.00
Purchases - Mdse Inventory 10,521.00
Office supplies 1,000.00
Tota
l 299,521.00
Add: 10% contingency 29,952.10

TOTAL PROJECT COST 329,473.10

6.3 CASH FLOW

 CABCAKE STUDIO
Projected Cash Flow Statement
Five-Year Period

Year 1 Year 2 Year 3 Year 4 Year 5

Pre-Operating
CASH INFLOWS:
Capital, beginning 343,000.00 - - - - -
Net Sales - 842,400.00 926,640.00 1,019,304.00 1,121,234.40 1,233,357.84
Total 343,000.00 842,400.00 926,640.00 1,019,304.00 1,121,234.40 1,233,357.84

CASH OUTFLOWS:
Machines 125,000.00 18,642.86 18,642.86 18,642.86 18,642.86 18,642.86
Transportation Vehicle 85,000.00 102,000.00 102,000.00 102,000.00 102,000.00 102,000.00
Equipment 75,000.00 10,928.57 10,928.57 10,928.57 10,928.57 10,928.57
Purchases 10,521.00 389,952.00 428,947.20 471,841.92 519,026.11 570,928.72
Permits and licenses 3,000.00 - 9,000.00 9,900.00 10,890.00 11,979.00
Office supplies 1,000.00 11,000.00 13,200.00 14,520.00 15,972.00 17,569.20
Electricity - 60,000.00 66,000.00 72,600.00 79,860.00 87,846.00
Repair and Maintenance - 52,500.00 57,750.00 63,525.00 69,877.50
Income Tax 16,786.22 51,733.39 248,316.24 303,526.50 357,950.13
Total 299,521.00 609,309.65 752,952.02 1,006,499.59 1,124,371.04 1,247,721.98

NET CASH FLOW 43,479.00 233,090.35 173,687.98 12,804.41 - 3,136.64 - 14,364.14

Add: Cash balance,
beginning   43,479.00 276,569.35 450,257.33 1,082,175.20 1,079,038.56
CASH BALANCE, END 43,479.00 276,569.35 450,257.33 1,082,175.20 1,079,038.56 1,064,674.42

6.4 INCOME STATEMENT

 CABCAKESTUDIO
Projected Income Statement
Five-Year Period

Year 1 Year 2 Year 3 Year 4 Year 5

Revenues
Sales 842,400.00 926,640.00 1,019,304.00 1,121,234.40 1,233,357.84
Less: Cost of Goods Sold 389,952.00 428,947.20 471,841.92 519,026.11 570,928.72
Gross Profit 452,448.00 1,355,587.20 1,491,145.92 1,640,260.51 1,804,286.56
Cost of Sales
Mdse Invtry, beg. - 10,521.00 32,400.00 31,632.00 30,165.24
Add: Net Purchases #REF! #REF! #REF! #REF! #REF!
Total Goods Available for Sale #REF! #REF! #REF! #REF! #REF!
Less: Mdse Invtry, end 30,000.00 32,400.00 31,632.00 30,165.24 28,163.71
#REF! #REF! #REF! #REF! #REF!
Gross Income #REF! #REF! #REF! #REF! #REF!
Operating Expenses
Permits and Licenses 3,000.00 9,000.00 9,900.00 10,890.00 11,979.00
Office Supplies 12,000.00 13,200.00 14,520.00 15,972.00 17,569.20
Transportation 109,000.00 24,000.00 24,000.00 24,000.00 24,000.00
Utilities 60,000.00 66,000.00 72,600.00 79,860.00 87,846.00
Total Operating Expenses 184,000.00 112,200.00 121,020.00 130,722.00 141,394.20
Net Income Before Tax #REF! #REF! #REF! #REF! #REF!
Less:Income Tax 16,786.22 51,733.39 248,316.24 303,526.50 357,950.13
NET INCOME #REF! #REF! #REF! #REF! #REF!
6.5 BALANCE SHEET
CABCAKESTUDIO
Projected Balance Sheet
Five-Year Period

Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
CURRENT

Cash 43,479.00 276,569.35 482,657.33 1,082,175.20 1,079,038.56 1,064

Merchandise Inventory #REF! 61,243.19 249,368.58 249,791.48 757,018.13 1,322

Total #REF! 337,812.54 732,025.91 1,331,966.68 1,836,056.69 2,386,8

NON-CURRENT
Machines #REF! #REF! #REF! #REF! #REF! #REF!

less: Accumulated Depreciation - 3,728.40 3,728.40 3,728.40 3,728.40 3,728.40

#REF! #REF! #REF! #REF! #REF! #REF!

Transportation Vehicle 85,000.00 85,000.00 85,000.00 85,000.00 85,000.00 85,

less: Accumulated Depreciation - 14,571.43 14,571.43 14,571.43 14,571.43 14,

85,000.00 70,428.57 70,428.57 70,428.57 70,428.57 70,

Equipment #REF! #REF! #REF! #REF! #REF! #REF!

less: Accumulated Depreciation - 2,085.71 2,085.71 2,085.71 2,085.71 2,085.71

#REF! #REF! #REF! #REF! #REF! #REF!
 Total #REF! #REF! #REF! #REF! #REF! #REF!

TOTAL ASSETS #REF! #REF! #REF! #REF! #REF! #REF

LIABILITIES AND CAPITAL

LIABILITIES

Income Tax Payable 16,786.22 51,733.39 248,316.24 303,526.50 357

CAPITAL

Cabcakestudio Capital, beginning 303,979.00 303,979.00 585,640.78 944,906.98 1,348,264.90 1,797

Add: Net Income   281,661.78 307,532.81 155,041.68 145,353.25 138

Total 303,979.00 585,640.78 944,906.98 1,348,264.90 1,797,144.65 2,293

TOTAL LIABILITIES AND

CAPITAL 303,979.00 602,427.00 996,640.37 1,596,581.14 2,100,671.15 2,651,4
6.6 FINANCIAL ANALYSIS
Financial analysis refers to an assessment of the viability, stability, and profitability of a business. Sub-business or project. It is the

process of evaluating a business, projects, budgets, and other finance-related transaction to determine their performance and

suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a

monetary investment.

6.6.1 RETURN ON INVESTMENT

(Net income/investment x 100)

RETURN ON INVESTMENT 22% 21% 23% 28% 30%

         

RETURN ON SALES 23% 21% 21% 23% 23%

RETURN ON EQUITY 20% 18% 19% 20% 20%

6.6.2 PAYBACK PERIOD

PAYBACK PERIOD (PBP)

Annual Cash Inflows

Net Income 281,661.78 307,532.81 155,041.68 145,353.25 138,451.47

Add: Depreciation 131,571.43 131,571.43 131,571.43 131,571.43 131,571.43

Total 413,233.21 439,104.24 286,613.11 276,924.68 270,022.90

Annual Cash Equivalent in

Year Inflows Recovery of Years
Investments

1 413,233.21 413,233.21 1

2 439,104.24 439,104.24 1

3 286,613.11 286,613.11 1

4 276,964.68 276,964.68 0.79

5 270,022.90
Total 1,415,915.24 3.79
6.6.3 CURRENT RATIO

(Current assets/ current liabilities)

YEAR COMPUTATION CURRENT RATIO

2022 337,812.54/16,786.22 20.1

2023 732,025.91/51,733.39 14.1

2024 1,331,966.68/248,316.24 5.3

2025 1,836,056.69/303,526.50 6

2026 2,386,881.92/357,950.13 6.6

6.6.4 INVENTORY TURN-OVER

YEAR COMPUTATION INVENTORY TURN-OVER

2022 842,400.00/486,000 1.7

2023 926,640.00/486,000 1.9

2024 1,019,304.00/486,000 2
 2025 1,121,234.40/486,000 2.3

2026 1,233,357.84/486,000 2.5

6.6.5 AVERAGE AGE OF INVENTORY

YEAR COMPUTATION AVERAGE AGE OF THE INVENTORY

2022 360/1.7 211.7

2023 360/1.9 189.4

2024 360/2 180

2025 360/2.3 156.5

2026 360/2.5 144