FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS BUSINESS AND FINANCE

FINANCIAL REPORTING TEMPLATE (FRT)

Welcome to the FEU-IABF Financial Reporting Template (FRT)!

This FRT is designed to test the various assumptions and show relationships of key financial aspects of the business case
statements. The FRT should be fed with inputs or assumptions consistent with the write up found in the Business Plan or Fea

The FRT consists of projections and are not intended to be perfectly accurate. The mathematical accuracy of the numbers a
of the assumptions and how the proponents support and defend those assumptions.

The FRT is not intended to meet the requirements of a financial accounting class, and do not purport to present information
the rules on disclosures and financial statements presentation. For convenience, certain numbers are derived on acceptable r

HOW TO USE THIS FRT

The 'TOP' Tab of the FRT contains the basic information about the proposed business or study like name of the proposed bu
summary of the contents of the entire FRT. The type of the organization selected will affect the taxes and the reports generat
The numbered yellow tabs from 1.0 to 7.0 contain the model inputs necessary to generate relationships of the financial aspe
cells are the designated are where the needed model input should be typed.
Areas are also provided wherein the proponents can put cross-reference of the related assumptions to their Business Plan or
related assumptions.
The green tabs "P&L, SFP, SCF and FH" are the reports to be presented as part of the Financial Aspect of the Business Plan
processing program to be formatted by the Proponents in accordance with their Paper.
Refer to FEU-IABF Guide to Building your FRT for more information how to develop your case from start to finish.

TERMS OF USE
This End-User License Agreement (EULA) is a legal agreement between you and FEU IABF that covers this FRT made by FEU
you agree to be bound by the terms of this EULA.

This EULA grants you the right to download this FRT and distribute to your students for use in Far Eastern University (FEU) ON

All title and copyrights in and to this FRT and any copies of this FRT are owned by Far Eastern University Institute of Accounts
any purpose other than expressly permitted in this EULA is prohibited and may result in disciplinary action from the Universi

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

VERSITY
INESS AND FINANCE

MPLATE (FRT)

al aspects of the business case or feasibility study of the proponents through a set of basic financial
ound in the Business Plan or Feasibility Study of the proponents.

tical accuracy of the numbers are virtually assured. Emphasis should be made on the reasonableness

purport to present information in accordance with generally accepted accounting principles (GAAP) or
bers are derived on acceptable relationships instead to strict formula.

y like name of the proposed business or study, the business logo, and the type of organization and the
he taxes and the reports generated by the FRT.
elationships of the financial aspects of the proposed business plan or study. Typically, the blue shaded

mptions to their Business Plan or Feasibility as well as areas wherein Advisers can put comments on the

ncial Aspect of the Business Plan or Feasibility Study. The reports can be copied and pasted in a word

e from start to finish.

at covers this FRT made by FEU IABF. By downloading, copying, accessing or otherwise using this FRT,

Far Eastern University (FEU) ONLY.

n University Institute of Accounts Business and Finance Department of Accountancy. Use of this FRT for
plinary action from the University in addition to severe civil and criminal penalties.
 FAR EASTERN UNIVERSITY
INSTITUTE OF ACCOUNTS BUSINESS AND FINANCE

FINANCIAL REPORTING TEMPLATE (FRT)

Company Name HEALTH HERBS CORP

Type of Business Organization (select the highlighted cell to see dropdown button)

The Type of Business Organization (Proprietorship, Partnership or Corporation) affects the tax implication of the financial assumption and the
financial statements line items used in the reports.

A. Model Inputs
1| General Assumptions
2| Project Expenses
3| Capital Expenditures
4| Cost Per Unit of Product or Service
5| Sales Projection
6| Production and Operating Expenses
7| Financing Plan
B. Reports
P&L PROFIT OR LOSS PROJECTION
SFP BALANCE SHEET PROJECTION
SCE STATEMENT OF CHANGES IN EQUITY
SCF STATEMENT OF CASH FLOWS
FH FINANCIAL HIGHLIGHTS

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

ANCE

HERBS CORP

Corporation Partnership

plication of the financial assumption and the

1.0
2.0
3.0
4.0
5.0
6.0
7.0

P&L
SFP
SCE
SCF
FH
 1.0 General Assumptions
General Assumptions lay down various economic and entity-specific factors that can affect various aspect of the busin

Assumptions Input Unit of

Amount Measure
A Annual Inflation Rate 6% Percentage

B Annual Price Increase 10% Percentage

C Annual Quantity Increase 5% Percentage

D No. of Days of credit to 0 Days

customers

E No. of Days Inventory 10 Days

F No. of Credit Days Allowed 90 Days

by Suppliers

G Factor (%) on Property 3% Percentage

Plant and Equipment
H Budgeted initial direct 1.00 No. of
costs Months

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

ous economic and entity-specific factors that can affect various aspect of the business plan such as inflation, increase in prices and quantity

Description Remarks

-Annual Inflation Rate will affect the level of expenses in the

succeeding years.
-Estimated increase in annual product price.

-Estimated increase in annual quantity of products or services sold.

-The length of time a customer has to repay the amount owed to the
business from a sales transaction (e.g. 30 days, 60 days, etc.).

-It is common for businesses to allow credit terms to their customers

to boost sales/revenues.
-The No. of Days of credit to customers will affect the level of Accounts
Receivables reported on the Statement of Financial Position (SFP).
-If the business plan is for a trading or manufacturing concern, this is
estimated average length of time a set of inventories stays in the
store/warehouse before they get sold.

-Leave this item blank if not applicable or if the Business does not
intend to keep inventory items in its store.
-The No. of Days Inventory will affect the level of Inventory reported
on the Statement of Financial Position (SFP).
-The length of time the Supplier allowed to repay the amount owed
by the business to the Supplier from a purchase transaction (e.g. 30
days, 60 days, etc.).
-The No. of Days of credit allowed by Suppliers will affect the level of
Accounts Payable reported on the Statement of Financial Position
(SFP).
-The estimated level of spending on repairs and maintenance on
Machinery, Equipment and Vehicles of the Company

-The estimated no. of months to keep a minimum cash balance equal

to monthly level of operating expenses to sustain initial operations
while the business waits for its cash flows from sales.

All rights reserved.

crease in prices and quantity to be sold.

Adviser's Comment
 3.0 Project Expenses
Project expenses are the costs spent at the beginning of the business and tend to include registration, developmen
costs and other operating expenses before commencement of business operations. Populate the table below those
and additional discussion in your Business Plan Paper.

Cost
Description (In PhP) Remarks
a Registration fees, taxes and licenses 7,995.00
b Professional fees 2,500.00
c Trials and Testing 5,000.00
d Training and deployment
e Travel costs 8,000.00
Others (Specify)
f marketing
g
h
i
j
k
l
Total Project Expense 23,495.00

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

to include registration, development, testing and qualification, training and deployment, and travel
ons. Populate the table below those that apply to your Business Plan. Put the breakdown of each item

Adviser's Comment
4.0 Capital Expenditures
Populate the tables below under Year 1 for items of fixed assets and intangible assets required to start the business.
Year 1, put the costs of the additional items under the appropriate Year when the business plans to acquire additiona
in the body of the business plan.
Important Note: Depreciation of Production-related asset goes to Cost of Revenues, while depreciation of General Ad

PART 1 OF 2: INVESTMENT IN FIXED ASSETS (PROPERTY, PLANT AND EQUIPMENT)

PRODUCTION
Fixed Assets Directly Related to Production of Year 1 Year 2 Year 3
Goods or Services

A Land
B Factory Building
C Machinery and Equipment
D Factory Furniture and fixtures
E Factory Vehicles
Others:
F
G
H
Total 0.00 0.00 0.00

GENERAL ADMINISTRATIVE & SELLING

Fixed Assets Related to General Administrative Year 1 Year 2 Year 3
and Selling Activities

A Land (for Corporate Office)

B Office and Sales Building
C Office & Sales Equipment 164,106.00
D Office & Sales Furniture and fixtures 29,650.00
E Service Vehicles (Office & Sales)
Others:
F
G
H
Total 193,756.00 0.00 0.00

PART 2 OF 2: INVESTMENT IN INTANGIBLE ASSETS (If Applicable)

PRODUCTION
Intangible Assets Year 1 Year 2 Year 3

A Indefinite Life (like Trademark)

B Definite Life (Franchise, copyright)
 Total 0.00 0.00 0.00

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

 ts required to start the business. If the business decides to expand and acquires additional fixed assets and intangible assets after
business plans to acquire additional items, otherwise leave them blank. Put the description, quantity and breakdown of each item

, while depreciation of General Administrative and Selling assets goes to Operating Expenses.

Remarks
Year 4 Year 5 Estimated Useful
Lives in Years

Not Applicable
5.00
5.00
5.00
10.00

5.00
5.00
5.00
0.00 0.00

SELLING Remarks
Year 4 Year 5 Estimated Useful
Lives in Years

Not Applicable
5.00
10.00
5.00
10.00

5.00
5.00
5.00
0.00 0.00

Remarks
Year 4 Year 5 Estimated Useful
Lives in Years

Not Applicable
5.00
0.00 0.00
 onal fixed assets and intangible assets after
tion, quantity and breakdown of each item

penses.

Adviser's Comment

Adviser's Comment

Adviser's Comment
5.0 Cost Per Unit of Product or Service
Document here the Products or Services that the business plan will offer. If the Business Plan is a Manufacturing or S
Variable Costs will be captured in tab '6|Production and Operating Expenses'.

(Note: If Manufacturing or Service Concern, Cost of

No. Name of Product/Service Unit Cost per Unit Selling Price
1 Sambong 1.00 135.00 250.00
usiness Plan is a Manufacturing or Service concern, only cost of materials are documented here. Cost of Direct Labor and Other

cturing or Service Concern, Cost of Materials only)

Markup Description Remarks
85%
here. Cost of Direct Labor and Other

Adviser's Comment
5.0 Sales Projection
Document expected sales in unit per month. Relate your projection with your supply and demand analysis, and sea

Name of Product/Service Unit Month 1

No.
1 Sambong 1 2,108.59
Total
pply and demand analysis, and seasonality and other market factors.

Monthly Sales in Units

Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

2,108.59 2,108.59 2,108.59 2,108.59 2,108.59 2,108.59 2,108.59 2,108.59 2,108.59

 Sub Totals
25,303.08 6,325,770.00 3,415,915.80 Year 2

Total Annual Selling Total Annual Total Cost of Total Annual Selling
Month 11 Month 12
Volume Price Sales in Pesos Sales Volume Price

2,108.59 2,108.59 25,303.08 250.00 6,325,770.00 3,415,915.80 26,568.23 275.00

25,303.08 6,325,770.00 3,415,915.80 26,568.23
Year 2 26,568.23 7,306,264.35 3,945,382.75
Year 3 27,896.65 8,438,735.32 4,556,917.08
Year 4 29,291.48 9,746,739.30 5,263,239.22
Year 5 30,756.05 11,257,483.89 6,079,041.30
 Year 3 Year 4

Total Annual Total Cost of Total Annual Selling Total Annual Total Cost of Total Annual
Sales in Pesos Sales Volume Price Sales in Pesos Sales Volume

7,306,264.35 3,945,382.75 27,896.65 302.50 8,438,735.32 4,556,917.08 29,291.48

7,306,264.35 3,945,382.75 27,896.65 8,438,735.32 4,556,917.08 29,291.48
 Year 5

Selling Total Annual Total Cost of Total Annual Selling Total Annual Total Cost of
Price Sales in Pesos Sales Volume Price Sales in Pesos Sales

332.75 9,746,739.30 5,263,239.22 30,756.05 366.03 11,257,483.89 6,079,041.30

9,746,739.30 5,263,239.22 30,756.05 11,257,483.89 6,079,041.30
Remarks Adviser's Comment
7.0 Production and Operating Expenses
Populate the tables below based on the Proponents' estimates, supported by Assumptions which must be documente
Some Operating Expenses for the succeeding years will be affected by the inflation rate.
Some Operating Expenses such as Rent and Sales and Marketing are based on annual discretionary budget of the Bus

PRODUCTION COSTS
Particulars Percentage Year 1 Year 2
A Materials (from 4|Cost Per Unit) 3,415,915.80 3,945,382.75
B Direct labor (As a Percentage of Material Cost) 0.00 0.00
Overhead
Variable Overhead Costs
C Other variable overhead (As Percentage of Material Cost) 0.00 0.00
D Other variable overhead (As Percentage of Labor Cost) 0.00 0.00
Fixed Overhead Costs
E Supplies
F Insurance
G Repairs & Maintenance
H Communication, Light and Water
I Rent
J Transportation and Travel
K Depreciation and Amortization - -
L Taxes and Licenses
M Trainings and seminars
N Other fixed overhead
Total Production Cost 3,415,915.80 3,945,382.75

OPERATING EXPENSES (Limited to General & Administrative & Selling Costs only)
Particulars Year 1 Year 2
1 Payroll and Related Expenses (excluding direct labor costs) 2,160,000 2,289,600
2 Professional Fees 30,000 31,800
3 Office supplies 1,895 2,009
4 Insurance
5 Repairs and Maintenance 5,813 5,813
6 Communication, Light and Water 56,241 59,615
7 Rent 480,000 480,000
8 Interest expense - -
9 Sales and marketing 4,400
10 Transportation and Travel
11 Depreciation and Amortization 22,340.60 22,341
12 Taxes and Licenses 7,995 8,475
13 Representation and Entertainment
14 Trainings and seminars
Others (Specify):
15 13th month Pay 180,000 183,600
16 Gasoline -
17 Contributions Expenses 217,530 221,881
18 Tools & Equipment -
19
 20
Total Operating Expenses 3,166,214 3,305,133

Document your Assumptions, References and Comments Here

PRODUCTION COSTS
Particulars Assumption
Materials (from 4|Cost Per Unit)
A

Direct labor (As a Percentage of Material Cost)

B

Other variable overhead (As Percentage of Material Cost)

C

Other variable overhead (As Percentage of Labor Cost)

D

Supplies
E

Insurance
F

Repairs & Maintenance

G

Communication, Light and Water

H

Rent
I

Transportation and Travel

J

Depreciation and Amortization

K
 Taxes and Licenses
L

Trainings and seminars

M

Other fixed overhead

N

OPERATING EXPENSES (Limited to General & Administrative & Selling Costs only)
Particulars Assumption
Payroll and Related Expenses (excluding direct labor costs)
1

Professional Fees
2

Office supplies
3

Insurance
4

Repairs and Maintenance

5

Communication, Light and Water

6

Rent
7

Interest expense
8

Sales and marketing

9
 Transportation and Travel
10

Depreciation and Amortization

11

Taxes and Licenses

12

Representation and Entertainment

13

Trainings and seminars

14

13th month Pay

15

Gasoline
16

Contributions Expenses
17

Tools & Equipment

18

19

20

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

hich must be documented in their Business Plan.

tionary budget of the Business and thus can be populated manually based on company's budget for each year.

Year 3 Year 4 Year 5

4,556,917.08 5,263,239.22 6,079,041.30
0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

- - -

4,556,917.08 5,263,239.22 6,079,041.30

Year 3 Year 4 Year 5

2,426,976 2,572,595 2,726,950
33,708 35,730 37,874
2,129 2,257 2,392

5,813 5,813 5,813

63,192 66,984 71,003
480,000 480,000 480,000
- - -

22,341 22,341 22,341

8,983 9,522 10,094

187,272 191,017 194,838

- - -
226,318 230,845 235,461
- - -
3,456,732 3,617,103 3,786,766

Reference in Business Plan Comments

Reference in Business Plan Comments
 2.0 Financing Plan
This section summarizes the total initial investment needed to start the business and operate it for t

REQUIRED FUNDING: AMOUNT IN PHP

1 PROJECT EXPENSES 23,495.00
2 CAPITAL EXPENDITURES 193,756.00
3 INITIAL DIRECT COSTS AND OPERATING EXPENSES 548,510.84
4 OTHER CONTINGENCIES 234,238.16
TOTAL PROJECTED FINANCING NEEDS 1,000,000.00

SOURCE OF FUNDING AMOUNT IN PHP

1 EQUITY 1,000,000.00
2 LOAN
TOTAL FINANCING 1,000,000.00

3 TERM OF LOANS (IN YEARS)

4 ANNUAL INTEREST RATE

Amount of Owner/Partners/Shareholders Withdrawal Per Year AMOUNT IN PHP

1 Year 1
2 Year 2
3 Year 3
4 Year 4
5 Year 5
Total -

Additional Investments Per Year AMOUNT IN PHP

1 Year 2
2 Year 3
3 Year 4
4 Year 5
5 Total -

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

ded to start the business and operate it for the first few months before cash from sales come in.

REQUIREMENTS
From 2|Project Expenses.
From 3|Capital Expenditures.
From 6|Production & Operating Expenses.

Remarks Adviser's Comment

Remarks Adviser's Comment

Remarks Adviser's Comment

HEALTH HERBS CORP
PROFIT OR LOSS PROJECTION
For the Year Ended: Year 1 Year 2 Year 3 Year 4 Year 5
Revenues

Revenues ₱6,325,770 ₱7,306,264 ₱8,438,735 ₱9,746,739 ₱11,257,484

Total Revenue 6,325,770 7,306,264 8,438,735 9,746,739 11,257,484

Direct Costs

Cost of Revenues 3,415,916 3,945,383 4,556,917 5,263,239 6,079,041

Total Direct Costs 3,415,916 3,945,383 4,556,917 5,263,239 6,079,041

Gross Profit 2,909,854 3,360,882 3,881,818 4,483,500 5,178,443

Operating expenses

Payroll and Related Expenses 2,160,000 2,289,600 2,426,976 2,572,595 2,726,950

Professional fees 32,500 31,800 33,708 35,730 37,874
Office supplies 1,895 2,009 2,129 2,257 2,392
Insurance -
Repairs and maintenance 5,813 5,813 5,813 5,813 5,813
Utilities (Communication, Light and Water) 56,241 59,615 63,192 66,984 71,003
Rent 480,000 480,000 480,000 480,000 480,000
Sales and marketing 4,400 - - - -
Transportation and Travel 8,000
Taxes and Licenses 15,990 8,475 8,983 9,522 10,094
Representation and Entertainment -
Seminars, Trainings and Subscriptions -
Other 397,530 405,481 413,590 421,862 430,299

Total Operating Expenses 3,162,369 3,282,792 3,434,392 3,594,763 3,764,425

Earnings Before Interest, Taxes, Depreciation and

(252,514) 78,089 447,427 888,737 1,414,017
Amportization (EBITDA)

Depreciation, Amortization and Interest

Depreciation and Amortization 22,341 22,341 22,341 22,341 22,341

Interest expense - - - - -

Total Depreciation, Amortization and Interest 22,341 22,341 22,341 22,341 22,341

NET INCOME (LOSS) BEFORE TAX (274,855) 55,749 425,086 866,397 1,391,677

TAX RATE* 30% 30% 30% 30% 30%

INCOME TAX EXPENSE (BENEFIT) (82,457) 16,725 127,526 259,919 417,503

PROFIT OR (LOSS) (₱192,399) ₱39,024 ₱297,560 ₱606,478 ₱974,174

*Corporations and Partnerships are subject to 30% Regular Corporate Income Tax
HEALTH HERBS CORP
STATEMENT OF FINANCIAL POSITION PROJECTION
As of End of: Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS

Current Assets

Cash and cash equivalents ₱1,395,278 ₱1,574,303 ₱2,030,100 ₱2,815,879 ₱3,993,682

Accounts receivable - - - - -
Total inventory 94,887 109,594 126,581 146,201 168,862

Total current assets 1,490,165 1,683,897 2,156,681 2,962,080 4,162,544

Non Current Assets

Property, Plant and Equipment 193,756 193,756 193,756 193,756 193,756

Less: Accumulated Depreciation (22,341) (44,681) (67,022) (89,362) (111,703)
Net Book Value 171,415 149,075 126,734 104,394 82,053

Intangible Assets - - - - -
Less: Accumulated Amortization - - - - -
- - - - -

Total Non Current Assets 171,415 149,075 126,734 104,394 82,053

TOTAL ASSETS ₱1,661,580 ₱1,832,971 ₱2,283,415 ₱3,066,473 ₱4,244,597

LIABILITIES

Current Liabilities

Accounts payable ₱853,979 ₱986,346 ₱1,139,229 ₱1,315,810 ₱1,519,760

Total Current Liabilities 853,979 986,346 1,139,229 1,315,810 1,519,760

Noncurrent Liabilities

Long-term debt/loan - - - - -

TOTAL LIABILITIES 853,979 986,346 1,139,229 1,315,810 1,519,760

EQUITY

Total Paid-in capital 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Retained Earnings (192,399) (153,374) 144,186 750,663 1,724,837

TOTAL EQUITY 807,601 846,626 1,144,186 1,750,663 2,724,837

TOTAL LIABILITIES AND EQUITY ₱1,661,580 ₱1,832,971 ₱2,283,415 ₱3,066,473 ₱4,244,597

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

HEALTH HERBS CORP
STATEMENT OF CHANGES IN EQUITY
For the Year: Year 1 Year 2 Year 3 Year 4 Year 5

EQUITY

Beginning of The Year ₱- ₱807,601 ₱846,626 ₱1,144,186 ₱1,750,663

Additional Investments 1,000,000 - - - -
Withdrawals - - - - -
Profit or Loss (192,399) 39,024 297,560 606,478 974,174

TOTAL EQUITY END OF THE YEAR ₱807,601 ₱846,626 ₱1,144,186 ₱1,750,663 ₱2,724,837

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

HEALTH HERBS CORP
STATEMENT OF CASH FLOWS
For the Year Ended: Year 1 Year 2 Year 3 Year 4 Year 5
Operating activities

Net income (₱274,855) ₱55,749 ₱425,086 ₱866,397 ₱1,391,677

Add back:
Depreciation and Amortization 22,341 22,341 22,341 22,341 22,341
Change in Current Assets/Current Liabilities
Accounts receivable - - - - -
Inventories (94,887) (14,707) (16,987) (19,620) (22,661)
Accounts payable 853,979 132,367 152,884 176,581 203,951

Total operating activities 506,578 195,749 583,323 1,045,698 1,595,307

Taxes Paid 82,457 (16,725) (127,526) (259,919) (417,503)

Net operating activities 589,034 179,024 455,797 785,779 1,177,804

Investing activities

Capital expenditures (193,756) - - - -

Total investing activities (193,756) - - - -

Financing activities

Long-term debt/financing - - - - -
Capital contribution 1,000,000 - - - -
Withrawals - - - - -

Total financing activities 1,000,000 - - - -

Net Cash flow During the Year 1,395,278 179,024 455,797 785,779 1,177,804

Beginning cash balance - 1,395,278 1,574,303 2,030,100 2,815,879

Ending cash balance ₱1,395,278 ₱1,574,303 ₱2,030,100 ₱2,815,879 ₱3,993,682

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

HEALTH HERBS CORP
FINANCIAL HIGHLIGHTS

Liquidity Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Current Ratio 1.74 1.71 1.89 2.25 2.74
Quick Ratio 1.63 1.60 1.78 2.14 2.63
Liquidity ratios measure the company's ability to pay off its short-term obligations. Generally, the higher the value of the ratio, the
larger the margin of safety that the company possesses to cover short-term debts.
Current Ratio is a liquidity ratio that measures a company's ability to pay-off its short-term liabilities with its current assets.
Quick Ratio is also a financial ratio used to gauge a company's liquidity. It is a more stringent measure of liquidity than current ratio
because unlike current ratio which assumes all current assets are available to settle short-term debts, quick ratio limits the
calculation to cash, marketable securities and receivables.

Solvency Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Shareholder's Equity Ratio 49% 46% 50% 57% 64%
Leverage Ratio 51% 54% 50% 43% 36%

Solvency Ratio measures the company's ability to meet its long-term obligations.
Sharehoder's Equity Ratio represents the amount of assets on which the shareholders or owners have a residual claim.
Leverage Ratio measures the risk that the company is exposed from debt financing. It shows how much capital comes in the form
of debt or loans and assesses the company's ability to meet long term financial obligations.

Profitability (Return) Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Return on sales or gross income -3% 1% 4% 6% 9%
Return on equity (debt plus equity) -24% 5% 26% 35% 36%
Return on assets -12% 2% 13% 20% 23%
Asset turnover 381% 399% 370% 318% 265%
Percentage of EBITDA to gross revenue -9% 2% 12% 20% 27%

Profitability Ratios are a class of financial measurements that are used to assess the company's ability to generate earnings as
compared to its expenses and other relevant costs incurred during a specified period.

Break even sales in Units Year 1 Year 2 Year 3 Year 4 Year 5

Total Sales in Units to Break Even 27,693 26,128 24,842 23,631 22,491

Break even sales in Pesos Year 1 Year 2 Year 3 Year 4 Year 5

Total Sales in Pesos to Break Even 6,923,281 7,185,071 7,514,635 7,863,268 8,232,100

Breakeven point is the level of sales needed to cover the company's fixed and variable expenses during a specified period of time.
Composite breakeven point considers the sales mix structure to arrive at required sales to break even.

Payback Period
No. of Years to Recover Initial Investment 3.82

Payback Period measures the total number of years needed to recover the initial investment used to start or operate the business.

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

This is the free edit portion of the FRT (sheeets labeled 1-6), you can manipulate the sheets in any way you prefer. You m
model inputs required in this FRT.

Purchasing Manager 1 20,000 20000 240,000.00

Biologist 3 15,000 45000 540,000.00
Marketing Manager 1 20,000 20000 240,000.00
Sales Executive 1 15,000 15000 180,000.00
HR Manager 1 20,000 20000 240,000.00
Employee Relations 1 15,000 15000 180,000.00
Finance Manager 1 20,000 20000 240,000.00
155,000.00 1,860,000.00

interestv rate 6%
0- 1,000,000.00
1 1,395,278.44
2 179,024.12
3 455,797.29
4 785,778.74
5 1,177,803.60

NPV 2,360,861.18
IRR 85%

Activity Ratio

3,415,915.80 3,945,382.75 4,556,917.08 5,263,239.22

94,886.55 109,593.97 126,581.03 146,201.09
Inventory Turnover 36 9.65 9.65 9.65

3,415,915.80 3,945,382.75 4,556,917.08 5,263,239.22

853,978.95 986,345.69 1,139,229.27 1,315,809.81
AP Turnover 4 1.07 1.07 1.07

3,415,915.80 3,945,382.75 4,556,917.08 5,263,239.22

1,661,580.39 1,832,971.33 2,283,415.09 3,066,473.29
Asset Turnover 2.06 0.56 0.55 0.49
n any way you prefer. You may copy certain tables and data from your paper into this portion for easy linking in the

1,760 250 100 2,110 25320

1,650 187.5 100 5,813 69750
1,760 250 100 2,110 25320
1,650 187.5 100 1,938 23250
1,760 250 100 2,110 25320
1,650 187.5 100 1,938 23250
1,760 250 100 2,110 25320
217530

6,079,041.30
168,862.26
9.65

6,079,041.30
1,519,760.33
1.07

6,079,041.30
4,244,597.46
0.42