FINANCIAL ASPECT

Initial Investment

To create the commodities or provide the services that they offer, all businesses require capital.
Golden Crown Petals will raise PHP 1,474,738 for its initial cost. This amount includes all the expenses in
operating the business.

INITIAL INVESTMENT

Name Ownership Amount

Bakebe PH 100% 1,474,738

TOTAL PROJECTION COST

BAKEBE PH

TOTAL PROJECTION COST

Initial Working Capital AMOUNT

Raw Materials 1,447,738

Salary Expense 27,000

Total Initial Working Capital 1,474,738

Financial Assumptions

o The project study will cover a period of five (5) years projection (2023-2027)
 o The operation of the business will begin in the first month of the year 2023

o Financial statements are accomplished every December 31, calendar year.

o The Initial Investment is Php 1,474,738 from the owners fund

o The proposed business will be operating for 10 days.

o All expenses shall be paid in cash or cashless payment , therefore, there shall be no liabilities

o The net income tax is 20%

o The sales projected growth is computed using Linear Forecasting with a 52.57% growth

Projected Statement of Comprehensive Income

BAKEBE PH

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED

NOTES 2023 2024 2025 2026 2027

Total Revenue 1 2,250,000 3,375,000 5,062,500 4,875,000 6,281,250

Less: Cost of Goods Sold 2 1,440,000 2,160,000 3,240,000 3,120,000 4,200,096

Gross Sales 810,000 1,215,000 1,822,500 1,755,000 2,081,154

Less: Operating Expenses

Salaries Expense 6 27,000 40,500 60,750 58,500 75,375

Total Operating Expenses 27,000 40,500 60,750 58,500 75,375

Earnings Before Interest and Tax 783,000 1,174,500 1,761,750 1,696,500 2,005,779

Earnings Before Tax 783,000 1,174,500 1,761,750 1,696,500 2,005,779

Less: Tax 20% 156,600 234,900 352,350 339,300 401,155.8

NET INCOME 626,400 939,600 1,409,400 1,357,200 1,604,623

Projected Statement of Cash Flow

BAKEBE PH

Statement of Cash Flow

FOR THE YEAR ENDED

2023 2024 2025 2026 2027

CASH FLOW FROM

OPERATING ACTIVITIES

Cash Receive from Customers 2250000 3375000 5062500 4875000 6281250

Cash paid for

Payment for Inventories 1,440,000 2,160,000 3,240,000 3,120,000 4,200,096

Income Tax Expense 156,600 234,900 352,350 339,300 401,155.8
Salaries Expense 27,000 40,500 60,750 58,500 75,375

NET CASH PROVIDED BY 626,400 939,600 1,409,400 1,357,200 1,604,623

OPERATING ACTIVITIES

CASH FLOW FROM FINANCING

ACTIVITIES

Cash Investment 1,474,738

NET CASH PROVIDED BY FINANCING 1,474,738 s

ACTIVITIES

Beginning Cash Balance Jan. 1 1,474,738 2,227,239.94 3,083,423.34 4,101,122.02

Increase/Decrease in Cash 1,474,738 1,817,394.89 1,583,816.6 1,322,301.32 1,030,523.03

Ending Cash Balance, Dec. 31 1,474,738 3,322,029.72 3,811,056.54 4,405,724.66 5,131,645.05

Projected Statement of Changes in Owner’s Equity

BAKEBE PH

Statement of Changes in Owner's Equity

For the year Ended

2023 2024 2025 2026 2027

BAKEBE PH Capital -
3,278,885 3,825,740 4,506,174
Jan 1 5,348,122

Add: Investment 2,740,000

Net Income 538,885 746,855 980,434 1,241,948 1,533,727

 Total 3,278,885 4,025,740 4,806,174 5,748,122 6,881,849

Less: Drawings - 200,000 300,000.00 400,000.00 500,000.00

BAKEBE PH Capital -
Dec 31 3,278,885 3,825,740.00 4,506,174.00 5,348,122.00 6,381,849.00

Projected Statement of Financial Position

BAKEBE PH

Comparative Statement of Financial Position

For the Year Ended

Account Title
2023 2024 2025 2026 2027

Assets
         

Current Assets
         

Cash
1,504,634.83 3,322,029.72 3,811,056.54 4,405,724.66 5,131,645.05

Total Current Assets

1,504,634.83 3,322,029.72 3,811,056.54 4,405,724.66 5,131,645.05

           

Non-Current Assets          
Property, Plant and Equipment
1,328,750 1,257,500 1,186,250 1,115,000 1,043,750

Furniture and Fixtures

445,500 341,000 236,500 132,000 27,500

Total Non-Current Assets

1,774,250 1,598,500 1,422,750 1,247,000 1,071,250

Total Assets

3,278,885 3,825,740.00 4,506,174.00 5,348,122.00 6,381,849.00

           

Liabilities and Owner's Equity

         

BAKEBE PH, Capital

3,278,885 3,825,740.00 4,506,174.00 5,348,122.00 6,381,849.00

Total Liabilities and BAKEBE Equity

3,278,885 3,825,740.00 4,506,174.00 5,348,122.00 6,381,849.00