Financial Assumptions

Year 1 Year 2 Year 3 Year 4 Year 5

Sales/Revenues Based on annual sales/revenues forecast, 10% increase annually
Cost of Sales/Services Based on Schedule of Cost of Sales/Services
Gross Profit Sales/Revenues - Cost of sales/services
Operating Expenses:
Salary Based on Manpower schedule, 5% increase per year
Employee Benefits 8% of salary expense
Repairs and Maintenance Average of P12,000 per year - 5% increase per year
Financing expenses Based on Loan amortization schedule
Depreciation expense Based on Depreciation schedule
Selling Supplies Estimated at .50% of sales/revenues
Office Supplies Estimated at P5,000 per year - 5% increase per year
Utilities Estimated at P50,000 per year, 5% increase annually
Rent Based on leasing schedule
Taxes / Licenses Estimated at 2% of sales/revenues
Miscellaneous Estimated at P30,000 per year - 5% increase annually
Total Operating Expenses

Net Profit = Gross Profit - Operating expenses

PROPERTY & EQUIPMENT
DEPRECIATION SCHEDULE

Basic assumptions:
Estimated life - years 5
Salvage value - percent of cost 20%

MACHINERY AND EQUIPMENT

Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 859,000 859,000 859,000 859,000 859,000
Salvage value - 20% (171,800)
Depreciable value 687,200
Annual depreciation/accumulated 137,440 274,880 412,320 549,760 687,200

Net book values - end of year 721,560 584,120 446,680 309,240 171,800

OFFICE FURNITURES AND FIXTURES

Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 17,200 17,200 17,200 17,200 17,200
Salvage value - 10% (1,720)
Depreciable value 15,480
Annual depreciation/accumulated 3,096 6,192 9,288 12,384 15,480

Net book values - end of year 14,104 11,008 7,912 4,816 1,720

ACCUMULATED DEPRECIATION
PROPERTY & EQUIPMENT
DEPRECIATION SCHEDULE

Basic assumptions:
Estimated life - years 5
Salvage value - percent of cost 10%

Machinery and Equipment

Sewing Machine
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 50,000 50,000 50,000 50,000 50,000
Salvage value - 10% (5,000)
Depreciable value 45,000
Annual depreciation/accumulated 9,000 18,000 27,000 36,000 45,000

Net book values - end of year 41,000 32,000 23,000 14,000 5,000

Fabric Equipment
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 150,000 150,000 150,000 150,000 150,000
Salvage value - 10% (15,000)
Depreciable value 135,000
Annual depreciation/accumulated 27,000 54,000 81,000 108,000 135,000

Net book values - end of year 123,000 96,000 69,000 42,000 15,000

Desktop
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 8,000 8,000 8,000 8,000 8,000
Salvage value - 10% (800)
Depreciable value 7,200
Annual depreciation/accumulated 1,440 2,880 4,320 5,760 7,200

Net book values - end of year 6,560 5,120 3,680 2,240 800

CCTV
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 15,000 15,000 15,000 15,000 15,000
Salvage value - 10% (1,500)
Depreciable value 13,500
Annual depreciation/accumulated 2,700 5,400 8,100 10,800 13,500

Net book values - end of year 12,300 9,600 6,900 4,200 1,500

Generator
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 17,000 17,000 17,000 17,000 17,000
Salvage value - 10% (1,700)
Depreciable value 15,300
Annual depreciation/accumulated 3,060 6,120 9,180 12,240 15,300
Net book values - end of year 13,940 10,880 7,820 4,760 1,700

Aircon
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 14,000 14,000 14,000 14,000 14,000
Salvage value - 10% (1,400)
Depreciable value 12,600
Annual depreciation/accumulated 2,520 5,040 7,560 10,080 12,600

Net book values - end of year 11,480 8,960 6,440 3,920 1,400

Printing Press
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 25,000 25,000 25,000 25,000 25,000
Salvage value - 10% (2,500)
Depreciable value 22,500
Annual depreciation/accumulated 4,500 9,000 13,500 18,000 22,500

Net book values - end of year 20,500 16,000 11,500 7,000 2,500

Pack-out two wheel cart

Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 3,500 3,500 3,500 3,500 3,500
Salvage value - 10% (350)
Depreciable value 3,150
Annual depreciation/accumulated 630 1,260 1,890 2,520 3,150

Net book values - end of year 2,870 2,240 1,610 980 350

NF-301 push Cart

Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 1,500 1,500 1,500 1,500 1,500
Salvage value - 10% (150)
Depreciable value 1,350
Annual depreciation/accumulated 270 540 810 1,080 1,350

Net book values - end of year 1,230 960 690 420 150

Digital Printer
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 25,000 25,000 25,000 25,000 25,000
Salvage value - 10% (2,500)
Depreciable value 22,500
Annual depreciation/accumulated 4,500 9,000 13,500 18,000 22,500

Net book values - end of year 20,500 16,000 11,500 7,000 2,500

Truck
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 550,000 550,000 550,000 550,000 550,000
Salvage value - 20% (110,000)
Depreciable value 440,000
Annual depreciation/accumulated 88,000 176,000 264,000 352,000 440,000

Net book values - end of year 462,000 374,000 286,000 198,000 110,000

FURNITURES AND FIXTURES

Wooden desk
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 3,500 3,500 3,500 3,500 3,500
Salvage value - 10% (350)
Depreciable value 3,150
Annual depreciation/accumulated 630 1,260 1,890 2,520 3,150

Net book values - end of year 2,870 2,240 1,610 980 350

Chair
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 1,000 1,000 1,000 1,000 1,000
Salvage value - 10% (100)
Depreciable value 900
Annual depreciation/accumulated 180 360 540 720 900

Net book values - end of year 820 640 460 280 100

Table
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 3,000 3,000 3,000 3,000 3,000
Salvage value - 10% (300)
Depreciable value 2,700
Annual depreciation/accumulated 540 1,080 1,620 2,160 2,700

Net book values - end of year 2,460 1,920 1,380 840 300

Bulb
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 3,000 3,000 3,000 3,000 3,000
Salvage value - 10% (300)
Depreciable value 2,700
Annual depreciation/accumulated 540 1,080 1,620 2,160 2,700

Net book values - end of year 2,460 1,920 1,380 840 300
Total Accumulated depreciation 145,510 291020 436,530 582,040 727,550
TOTAL PROJECT COST AND CAPITAL REQUIREMENTS
Business Name: Customized Classy Tote Bags
Site Address: Sm Southmall Las Pinas

INITIAL PROJECT COST AMOUNT

Inventories
Raw Materials 74,500
Office Supplies 3,700
Total 78,200
Property and equipment
Office furniture and fixtures 10,500
Machinery & equipment 859,000
Total 869,500
Pre-operating expenses
Business permits 20,000
Legal and accounting fees 10,000
Total 30,000
Working capital - Cash on hand

(3 months overhead costs/expenses) 222,300

TOTAL PROJECT COST 1,200,000

SOURCES OF FINANCING
Amount Total
Partners' contributed capital
Quinto, Capital 240,000
Arciaga, Capital 240,000
Macias, Capital 240,000
Magana, Capital 240,000
Rioveros, Capital 240,000

1,200,000

LOAN INTEREST PAYMENTS Loan Balance Financing Expenses

Year
Year 1 100,000 10,000
Year 2 50,000 5,000
Year 3 - -
Year 4 - -
Year 5 - -

Financial Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Sales/Revenues Based on sales/revenues forecast, 10% increase/year
Cost of Sales/Services Based on Schedule of Cost of Sales/Services
Gross Profit Sales/Revenues - Cost of sales/services
Operating Expenses:
Salary Based on Manpower schedule, 5% increase per year
Employee Benefits 8% of salary expense
Repairs and Maintenance Average of P12,000 per year - 5% increase per year
Financing expenses Based on Loan amortization schedule
Depreciation expense Based on Depreciation schedule
Selling Supplies Estimated at .50% of sales/revenues
Office Supplies Estimated at P5,000 per year - 5% increase per year
Utilities Estimated at P50,000 per year, 5% increase annually
Rent Based on leasing schedule
Pre-operating exp. Part of project cost
Taxes / Licenses Estimated at 2% of sales/revenues
Miscellaneous Estimated at P30,000 per year - 5% increase annually
Total Operating Expenses
 Customized Classy Tote Bags
Statement of Financial Position
For the years ended, December 31, 2022-2026

Statement of Financial Position Template - Customized Classy Tote Bags

2022 2023 2024 2025 2026

ASSETS
Current assets
Cash on hand and in banks 896,245 1,788,184 2,881,197 4,195,986 5,750,591
Accounts receivable -
Office supplies 46,711 39,373 31,668 23,577 15,082
Inventories
Raw Materials 300,000 100,000 150,000 200,000 300,000
Goods in process 300,500 328,330 452,000 542,654 486,700
Finished goods 100,000 800,000 1,100,000 1,300,000 1,500,000
Prepaid expenses
Total current assets 1,643,456 3,055,887 4,614,865 6,262,217 8,052,373
Non-current assets
Property and equipment 869,500 869,500 869,500 869,500 869,500
Less: Accumulated depreciation (57,750) (115,500) (173,250) (231,000) (288,750)
Net book value 811,750 754,000 696,250 638,500 580,750
TOTAL ASSETS 2,455,206 3,809,887 5,311,115 6,900,717 8,633,123
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable - - -
Loans payable -
Income tax payable 376,562 782,966 1,233,334 1,710,214 2,229,936
Total liabilities 376,562 782,966 1,233,334 1,710,214 2,229,936
Partners' Capital
Quinto, Capital 240,000 415,729 605,384 815,556 1,038,100
Share in net income 175,729 189,655 210,172 222,544 242,537
Total 415,729 605,384 815,556 1,038,100 1,280,637
Arciaga, Capital 240,000 415,729 605,384 815,556 1,038,100
Share in net income 175,729 189,655 210,172 222,544 242,537
Total 415,729 605,384 815,556 1,038,100 1,280,637
Macias, Capital 240,000 415,729 605,384 815,556 1,038,100
 Share in net income 175,729 189,655 210,172 222,544 242,537
Total 415,729 605,384 815,556 1,038,100 1,280,637
Magana, Capital 240,000 415,729 605,384 815,556 1,038,100
Share in net income 175,729 189,655 210,172 222,544 242,537
Total 415,729 605,384 815,556 1,038,100 1,280,637
Rioveros, Capital 240,000 415,729 605,384 815,556 1,038,100
Share in net income 175,729 189,655 210,172 222,544 242,537
Total 415,729 605,384 815,556 1,038,100 1,280,637
Total Partners' Capital 2,078,644 3,026,921 4,077,781 5,190,502 6,403,186
TOTAL LIABILITIES AND CAPITAL 2,455,206 3,809,887 5,311,115 6,900,717 8,633,123
 Customized Classy Tote Bags
Statement of Cash Flow
For the years ended, December 31, 2022-2026

2022 2023 2024 2025 2026

Cash flows from operating activities
Net income 878,644 948,277 1,050,860 1,112,721 1,212,684
Depreciation expense 57,750 57,750 57,750 57,750 57,750
Decrease in inventory 574,000 697,170 762,580 907,409 1,021,180
Increase in inventory (1,074,500) (1,000,000) (1,000,000) (1,000,000) (1,000,000)
Increase in Direct Labor (100,000) (105,000) (110,250) (115,763) (121,551)
Increase in Factory overhead (100,000) (120,000) (126,000) (132,300) (143,675)
Increase in income tax payable 376,562 406,404 450,368 476,880 519,722
Increase in Office supplies (46,711)
Decrease in Office supplies 7,338 7,705 8,091 8,495
Increase in Accounts payable - - -
Net cash flows provided by operating activities 565,745 891,939 1,093,013 1,314,789 1,554,605

Cash flows from investing activities

Purchase of property and equipment (869,500) - - - -

Net cash used in investing activities

Cash flows from financing activities

Partners' capital 1,200,000
Proceeds (payments) of loans payable
Net cash provided by investing activities 1,200,000 - - - -

Net increase (decrease) in cash 896,245 891,939 1,093,013 1,314,789 1,554,605

Cash on hand and in banks, Beginning - 896,245 1,788,184 2,881,197 4,195,986
Cash on hand and in banks, Ending 896,245 1,788,184 2,881,197 4,195,986 5,750,591
 Customized Classy Tote Bags
Statement of Comprehensive Income
For the years ended, December 31, 2022-2026

Notes 2022 2023 2024 2025 2026 Yearly increase

Net Sales 1 1,955,500 2,151,050 2,366,155 2,602,771 2,863,048 10%
Less: Cost of Goods Sold 2 574,000 697,170 762,580 907,409 1,021,180
Total income 1,381,500 1,453,880 1,603,575 1,695,362 1,841,868
Less: General and Administrative Exp. 3 126,294 99,199 102,347 105,760 109,462
Income before tax 1,255,206 1,354,681 1,501,228 1,589,602 1,732,406
Provision for income tax (30%) 376,562 406,404 450,368 476,880 519,722
Net profit 878,644 948,277 1,050,860 1,112,721 1,212,684

Note 1 j
Net Sales
2022 2023 2024 2025 2026 Yearly increase
Gross sales 2,000,000 2,200,000 2,420,000 2,662,000 2,928,200 10%
Sales return and allowances (18,000) (19,800) (21,780) (23,958) (26,354)
Sales discounts (26,500) (29,150) (32,065) (35,272) (38,799)
Net Sales 1,955,500 2,151,050 2,366,155 2,602,771 2,863,048 10%

Note 2
Cost of Goods Sold
2022 2023 2024 2025 2026 Yearly increase
Beg. Raw Materials 74,500 300,000 100,000 150,000 200,000
Net Purchases 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Raw Materials Available for use 1,074,500 1,300,000 1,100,000 1,150,000 1,200,000
Ending raw materials (300,000) (100,000) (150,000) (200,000) (300,000)
Raw Materials used 774,500 1,200,000 950,000 950,000 900,000
Direct Labor 100,000 105,000 110,250 115,763 121,551
Factory overhead 100,000 120,000 126,000 132,300 143,675
Total manufacturing cost 974,500 1,425,000 1,186,250 1,198,063 1,165,226
Beginning goods in process 0 300,500 328,330 452,000 542,654
Total cost of goods in process 974,500 1,725,500 1,514,580 1,650,063 1,707,880
Ending goods in process (300,500) (328,330) (452,000) (542,654) (486,700)
Cost of goods manufactured 674,000 1,397,170 1,062,580 1,107,409 1,221,180
Beginning finished goods inventory - 100,000 800,000 1,100,000 1,300,000
Cost of goods available for sale 674,000 1,497,170 1,862,580 2,207,409 2,521,180
Ending finished goods inventory (100,000) (800,000) (1,100,000) (1,300,000) (1,500,000)
Cost of goods sold 574,000 697,170 762,580 907,409 1,021,180

Note 3
General and Administrative Expenses
2022 2023 2024 2025 2026 Yearly increase
Repairs and Maintenance 12,000 12,600 13,230 13,892 14,586 5%
Depreciation expenses 57,750 57,750 57,750 57,750 57,750
Office Supplies Expense 6,989 7,338 7,705 8,091 8,495 5%
Taxes / Licenses 19,555 21,511 23,662 26,028 28,630 1% of revenues
Pre-operating expenses 30,000 0 0 0 0 Part of project cost
Total 126,294 99,199 102,347 105,760 109,462
Cost of Goods Sold
2022 2023 2024 2025
Beg. Raw Materials 74,500 300,000 100,000 150,000
Net Purchases 1,000,000 1,000,000 1,000,000 1,000,000
Raw Materials Available for use 1,074,500 1,300,000 1,100,000 1,150,000
Ending raw materials (300,000) (100,000) (150,000) (200,000)
Raw Materials used 774,500 1,200,000 950,000 950,000
Direct Labor 100,000 105,000 110,250 115,763
Factory overhead 100,000 120,000 126,000 132,300
Total manufacturing cost 974,500 1,425,000 1,186,250 1,198,063
Beginning goods in process 0 300,500 328,330 452,000
Total cost of goods in process 974,500 1,725,500 1,514,580 1,650,063
Ending goods in process (300,500) (328,330) (452,000) (542,654)
Cost of goods manufactured 674,000 1,397,170 1,062,580 1,107,409
Beginning finished goods inventory 0 100,000 800,000 1,100,000
Cost of goods available for sale 674,000 1,497,170 1,862,580 2,207,409
Ending finished goods inventory (100,000) (800,000) (1,100,000) (1,300,000)
Cost of goods sold 574,000 697,170 762,580 907,409
 2026
200,000
1,000,000
1,200,000
(300,000)
900,000
121,551
143,675
1,165,226
542,654
1,707,880
(486,700)
1,221,180
1,300,000
2,521,180
(1,500,000)
1,021,180
Revenue Forecast
Yearly Increase
Year 1 Year 2 Year 3 Year 4 Year 5
Revenues 2,000,000 10%

Cost of Services
For Service Business
The total Operating expenses shall be broken down into Direct Cost of Services (DCOS) and General and Administrative Expenses.
The DCOS should indicate only those directly incurred or related to the gross revenue from rendition of services.

Note 3
Total Operating expenses Year 1
Direct General and
Total Cost of Services Administrative Yearly Increase
Salary 5%
Employee Benefits 5%
Utilities 5%
Depreciation expense Depreciation schedule
Selling Supplies .5% of revenues
Rent Leasing schedule
Repairs and Maintenance 5%
Financing expenses Loan Amortization
Office Supplies 5%
Taxes / Licenses 2% of revenues
Pre-operating expenses Part of project cost
Miscellaneous 5%
Totals - - -

Leasing Schedule Template

Year Escalation Gross Monthly Rent Annual Rent

Year 1 0% 10,000 120,000
Year 2 0% 10,000 120,000
Year 3 5% 10,500 126,000
Year 4 5% 11,025 132,300
Year 5 5% 11,576 138,915

REQUIREMENT FOR 5-YEAR LEASE CONTRACT

Three months deposit 30,000
PROJECTED MANPOWER

Head Monthly Total

EMPLOYEES Count Salary Salaries

Supervisor 1 14,000 14,000

Production staff 3 12,000 36,000
Office staff 3 14,000 42,000

Sub Total 50,000

Annual salaries (x 13 mos) 650,000
Employees' benefits 52,000

TOTAL 7 702,000

Employee benefits include SSS, HDMF, Philhealth contributions, sick leaves,

maternity leaves, etc.