CHAPTER IV

Financial Feasibility

Projected Cost

Machineries and Equipment 1,186,726.00

Supplies 1,210, 289.00
Furnitures and Fixtures 781,608.00
Biological Assets 130,000.00
Land and Buildings 41,980,500.00
Salaries and Wages 4,835,032.00
Benefits 483,503.00
Repairs and Maintenance 75,000.00
Utilities 422,964.00
Permit and Licenses 11,770.00
Promotion 15,000.00
Total 49,922,103.00

Financier

The business owner is the sole financier of the proposed business. His area of

responsibility as the business owner are planning and budgeting, arranging finances,

legal documentation, and hiring the workforce essential for the business to grow.

Beeseeta Farm is a sole proprietorship business owned by Mr. Mark Geovan H. Heyres,

who will contribute his money amounting to P55,500,000. The amount released will

serve as the initial budget for the proposed business.

 Major Assumptions

1. The revenue increase by 10% annually due to increase efforts in marketing and

increase to demand.

2. Supplies expense will increase by 5% yearly

3. Repairs and maintenance will increase yearly by 10% to maintain the fixed asset.

4. Utilities expense will increase by 5% annually

5. Salaries will increase 5% every year

6. Straight line depreciation is being used

7. 10% income tax will be applied.

NOTES TO FINANCIAL STATEMENTS
Note 1. Cash
Cash and cash equivalents are composed of cash on hand and cash in bank
Petty cash fund s used for daily expenses incurred by the company
and cash in bank are the collection of the company deposited in banks
Petty Cash Fund 1,086,033.00
Cash in Bank 1,619,500.00
TOTAL 2,705,533.00

Note 2. Technology Requirements

Description Quantity Unit Cost Total Cost Useful Life Depreciation Expense
Museum
Fire Alarm System (set) 1 3,170.00 3,170.00 10 years 317.00
Camera System 8 Channel 1 15,000.00 15,000.00 5 years 3,000.00
Dehumidifier 2 16,990.00 33,980.00 5 years 6,796.00
75-inch LED Screen 1 99,500.00 99,500.00 5 years 19,900.00
Total 151,650.00 30,013.00

Production
Computer Set 2 P24,999.00 49,998.00 4 years 12,499.50
Fire Alarm System (set) 1 3,170.00 3,170.00 10 years 317.00
Total 53,168.00 12,816.50

Sauna
Fire Alarm System (set) 1 P 3,170.00 3,170.00 10 years 317.00
Camera System 4-channel 1 7,045.00 7,045.00 5 years 1,409.00
Total 10,215.00 1,726.00

Reception and Control Room

Fire Alarm System (set) 1 P 3,170.00 3,170.00 10 years 317.00
Computer Set 3 24,999.00 74,997.00 4 years 18,749.25
Camera System 4-channel 1 7,045.00 7,045.00 5 years 1,409.00
Swipe Card 1 10,000.00 10,000.00 6 years 1,666.67
Total 92,042.00 21,824.92

Farm's and Other Tech

Camera System 8-channel (set) 2 P15,000.00 30,000.00 5 years P 6,000.00
TOTAL 30,000.00 P 6,000.00

Bee Breeding Tech

Instrumental Unit 1 P100,000.00 P100,000.00 8 years P 12,500.00
Total 100,000.00 P 12,500.00

TOTAL TECHNOLOGY
REQUIREMENT 437,075.00 66,380.42
 Note 3. Machinery and Equipments
Depreciation
Description
Quantity Unit Cost Total cost Useful Life Expense
Note 4. Land
10-framer Wooden Beehive 20 P2,600.00 52,000.00 5 years 10,400.00
The cost
Wood of land is 3,000,000
Frames 200 60.00 12,000.00 5 years 2,400.00
Beeswax Foundation Sheet 40 60.00 2,400.00 3 years 800.00

Note 6. Supplies
Stainless
Hive Tool
Building
Bee Smoker
Note 4. Building and Leasehold Improvements 3
3
980.00
200.00
41,680,500.00
2,940.00
600.00
8 years
8 years
980.00
75.00
Queen Catcher 3 400.00 - 1,200.00 3 years 400.00
Leasehold
Bee
TotalSuit
Gloves
Improvements
Monthly Cost 3
8
Annual Costs
3,600.00
41,680,500.00
350.00
10,800.00
2,800.00
4 years
4 years
2,700.00
700.00
Accumulated Depreciation is at 100,000 per year
Office Supplies
Boots
Note 5. Furnitures and Fixtures
Beekeeper’s Hat
2,855.00
8
50
14,242.00
2,500.00
263.00
20,000.00
13,150.00
4 years
4 years
5,000.00
3,287.50
Depreciation
Reception Supplies 6,255.00 16,485.00
Essential Oil Description QTY 4 550.00
Unit Cost 2,200.00
Total Cost -
Useful Life -
Feeders 5 800.00 4,000.00 4 years Expense
1,000.00
Rockefeller Office Table (6-seater)
Sauna Supplies 55,662.00 58,192.00
Pure Cane Granulated sugar (20kgs) 1 2,140.00 2,140.00 2 years8 1,070.00
2 58,000.00 116,000.00 years 14,500.00
Queen Excluder
Office Chairs 4 12 400.00
1,799.00 1,600.00
21,588.00 5 years4 years 320.005,397.00

Museum Supplies 970.00 2,715.00

Queen Marker 4 850.00 3,400.00 5 years 680.00
4-drawer
Electric Filing
Honey Cabinet
Extractor 3 P24,450.00 73,350.00 4 years8 18,338.006,375.00
6 8,500.00 51,000.00 years
Propolis Collection 4 100.00 400.00 5 years 80.00
Conference Table Screen Mat
(10-seater) 1 38,365.00 38,365.00 8 years 4,795.63
Production Supplies
Pollen Trap Strips
Conference Chairs
Entrance Bee Pollen Trap
158,777.80
20
4
10 1,118,655.00
10.00
1,399.00
150.00
200.00
13,990.00
600.00
2
4
years
years
4 years
100.00
150.00
3,497.50
Couch Set 1 17,360.00 17,360.00 3 years 5,786.67
Total Supplies 1,210,289.00
Refractometer 2 6,700.00 13,400.00 4 years 3,350.00
Bench
Product Scale
Display Rack Cabinet 1 17,000.00 17,000.00 8 years 2,125.00
Stainless Steel Honey Gate 3 1 10,000.00
400.00 10,000.00
1,200.00 6 years8 years 200.001,250.00
3-layer Display
Perfection Honey Rack
Gate 3 3 4,500.00
600.00 13,500.00
1,800.00 6 years8 years 300.001,687.50
Pantry Table
Delivery Tuk Tuk 1 2 2,650.00
P208,000.00 5,300.00
208,890.00 10 years 8 years 20,889.00 662.50
Pantry Chairs
Automatic Composting Equipment 1 8 1,400.00
150,000.00 11,200.00
150,000.00 8 years6 years 18,750.001,866.67
Pantry Generator
Diesel Bar Counter 1 1 13,500.00
320,000.00 13,500.00
320,000.00 25 years 8 years 12,800.001,687.50
Water
DiningTank 1200L
Set (4-seater) 1 6 22,575.00
P8,500.00 22,575.00
51,000.00 15 years 8 years 1,505.006,375.00
Fire
MetalExtinguisher
Locker (3-door) 6 10 945.00
9,250.00 5,670.00
92,500.00 5 years
15 years 1,134.006,166.67
20L Plastic Pedal Bin 15 780.00 11,700.00 4 years 2,925.00
Conference
30L Table (6-seater)
Plastic Garbage Bin 15 200.00 3,000.00 4 years8 750.002,520.00
1 P20,160.00 20,160.00 years
240L Side Wheel Garbage Bin 4 4,800.00 19,200.00 5 years 3,840.00
Conference Chairs 6 1,399.00 8,394.00 4 years 2,098.50
Wheelbarrow 2 2,400.00 4,800.00 15 years 320.00
Office Desk 2 7,900.00 15,800.00 8 years 1,975.00
Broomstick 4 92.00 368.00 2 years 184.00
Office Chairs
Dustpan 4 2 1,799.00
180.00 3,598.00
720.00 3 years4 years 240.00 899.50
Rake
3-layer Steel Rack (product storage) 2 295.00 590.00 5 years 118.00
Oscillating Sprinkler 20 20 5,499.00
920.00 109,980.00
18,400.00 5 10
years years 10,998.00
3,680.00
2-layer Steel
Garden Rack
Hose (50 (packaging
meters) 10 2,700.00 27,000.00 8 years 3,375.00
storage)
Shovel 2 10 5,499.00
520.00 54,990.00
1,040.00 8 10
years years 130.005,499.00
Planter’s Trowel 4 250.00 1,000.00 4 years 250.00
4-drawer Filing Cabinet
Hedge Shears 2 2 729.00
8,500.00 1,458.00
17,000.00 6 years8 years 243.002,125.00
Spading
Receiving Fork 2 480.00 960.00 6 years 160.00
Garden
L-shapeHoe Desk 2 1 200.00
P17,400.00 400.00
17,400.00 6 years6 years 66.672,900.00
Grass 1 5,899.00 5,899.00 10 years 589.90
Office Cutter
ChairsMachine (gasoline) 2 1,799.00 3,598.00 4 years 899.50
Food Stall Tent 2 2,388.00 4,776.00 5 years 955.20
Couch 2 1,200.00 2,400.00 3 years 800.00
Popcorn Machine 1 11,000.00 11,000.00 5 years 2,200.00
4-drawer
Deep Filing
Frying Cabinet
Machine 1 18,000.00 18,000.00 6 years 3,000.00
Kitchen Utensils (set) 1 1 8,500.00
24,000.00 8,500.00
24,000.00 5 years8 years 4,800.001,062.50
Control
Sauna Room
Heater (steam) 2 P40,750.00 81,500.00 16 years 5,093.75
Long Wooden
Thermometer Table
and Hygrometer 2 1 4,500.00
2,300.00 4,500.00
4,600.00 6 years8 years 766.67 600.00
Office Chairs
TOTAL MACHINERY AND 2 1,799.00 3,598.00 4 years 899.50
L-shape Desk
EQUIPMENT 1 P17,400.00 17,400.00
1,186,726.00 6 years 143,220.692,900.00
Chairs 2 1,799.00 3,589.00 4 years 899.50
L-shape Desk 1 P17,400.00 17,400.00 6 years 2,900.00
Chairs 2 1,799.00 3,598.00 4 years 899.50
Couch 2 1,200.00 2,400.00 3 years 800.00
Shelf Cabinet 1 12,000.00 12,000.00 6 years 2,000.00
TOTAL 781,608.00 103,723.14
Note 7. Salaries and Wages
No. of People Total Salary per
Job Title Function Monthly Salary
Required year
Manager 1 Regular/ 31,342.00 376,104.00
Fulltime
Secretary 1 Regular/ 14,820.00 177,840.00
Fulltime
IT Consultant 1 On call / every quarter 4,000.00 4,000.00
Accountant 1 Regular/ 29,168.00 350,016.00
Fulltime
Payroll Manager 1 Regular/ 20,000.00 240,000.00
Fulltime
Bookkeeper 1 Regular/ 16,400.00 196,800.00
Fulltime
Office Clerk 2 Regular/ 13,208.00 316,992.00
Fulltime
Beekeeper 3 Regular/ 16,900.00 608,400.00
Fulltime
Front Desk Receptionist 2 Regular/ 13,260.00 318,240.00
Fulltime
Farmworkers 6 Regular/ 10,660.00 767,520.00
Fulltime
Sauna Attendant 2 Regular/ 11,570.00 277,680.00
Fulltime
Museum Attendant 2 Regular/ 11,570.00 277,680.00
Fulltime
Security Personnel 2 Regular/ 10,530.00 252,720.00
Fulltime
Food Stall Attendant 2 Regular/ 9,100.00 218,400.00
Fulltime
Inventory Clerk 1 Regular/ 12,610.00 151,320.00
Fulltime
Packaging Staff 2 Regular/ 10,140.00 243,360.00
Fulltime
Contract of Service
(P51.25 hourly rate)
Banana chips-maker 2 1,025.00 24,600.00
Contract of Service
Candle-maker 1 (P139 hourly rate) 2,780.00 33,360.00
Total Salary and Wages per Year 4,835,032.00
Note 8. Utilities
Description Monthly Year 1 Year 2 Year 3 Year 4 Year 5
Electricity P 22,957.00 275,484.00 289,258.20 303,721.11 318,907.17 334,852.52
Water 10,790.00 129,480.00 135,954.00 142,751.70 149,889.29 157,383.75
Landline and Internet 1,500.00 18,000.00 18,900.00 19,845.00 20,837.25 21,879.11
TOTAL 35,247.00 422,964.00 444,112.20 466,317.81 489,633.70 514,115.39

Note 9. Sales
Months Exp. No. of Customers Entrance fee Total
January 5,000.00 100.00 500,000.00
February 5,000.00 250.00 1,250,000.00
March 5,000.00 250.00 1,250,000.00
April 5,000.00 250.00 1,250,000.00
May 5,000.00 250.00 1,250,000.00
June 3,100.00 250.00 775,000.00
July 3,000.00 250.00 750,000.00
August 3,000.00 250.00 750,000.00
September 3,500.00 250.00 875,000.00
October 3,800.00 250.00 950,000.00
November 4,500.00 250.00 1,125,000.00
December 5,000.00 250.00 1,250,000.00
TOTAL SALES 11,975,000.00

Note 10. Loans Payable

The company is expected to avail a loan to cover up the remaining cost of equity
with a total of 30 million. Payable after a 15 year period

Note 11. Depreciation Expense

Year 1 Year 2 Year 3 Year 4 Year 5
Furnitures and Fixtures 103,723.14 103,723.14 103,723.14 96,336.47 85,745.97
Machinery and Equipments 88,882.32 88,882.32 88,882.32 88,882.32 67,194.32
Building 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Technological Requirements 66,380.42 66,380.42 66,380.42 66,380.42 35,448.67
Total Depreciation Expense 358,985.88 358,985.88 358,985.88 351,599.21 288,388.96

Note 12. Equity

Cash 25,500,000.00
Loans 30,000,000.00
Total Capital Beginning 55,500,000.00
 Beeseeta Farm

Projected Statement of Cash Flows

For Five (5) Years period

2022 2023 2024 2025 2026

Beginning Balance 2,705,533.00 8,493,560.76 15,251,003.64 23,091,781.85 40,903,945.81
Cash Inflows
Sales 11,975,000.00 13,172,500.00 14,489,750.00 15,938,725.00 17,532,597.50
Total Cash Inflows 14,680,533.00 21,666,060.76 29,740,753.64 39,030,506.85 58,436,543.31

Cash Outflows
Investing Activities 42,762,108.00
Operating Expenses 4,921,442.00 4,921,442.00 4,921,442.00 4,921,442.00 4,921,442.00
Financing Activities (40,000,000.00)
Total Cash Outflows 7,683,550.00 4,921,442.00 4,921,442.00 4,921,442.00 4,921,442.00
Net Cash Flows 6,996,983.00 16,744,618.76 24,819,311.64 34,109,064.85 53,515,101.31
Operating Cash Balance 6,996,983.00 16,744,618.76 24,819,311.64 34,109,064.85 53,515,101.31
 Beeseeta Farm
Projected Statement of Financial Statement
For five (5) years period

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 11,975,000.00 13,172,500.00 14,489,750.00 15,938,725.00 17,532,597.50
Cost of Sales
Direct Materials 1,196,047.00 1,255,849.35 1,318,641.82 1,384,573.91 1,453,802.60
Direct Labor 2,451,000.00 3,647,047.00 2,573,550.00 3,829,399.35 2,702,227.50 4,020,869.32 2,837,338.88 4,221,912.78 2,979,205.82 4,433,008.42
Gross Profit 8,327,953.00 9,343,100.65 10,468,880.68 11,716,812.22 13,099,589.08

Expenses
Supplies Expense 14,242.00 14,954.10 15,701.81 16,486.90 17,311.24
Salaries Expense 2,384,032.00 2,503,233.60 2,628,395.28 2,759,815.04 2,897,805.80
Repairs and Maintenance 75,000.00 82,500.00 90,750.00 99,825.00 109,807.50
Utilities Expense 422,964.00 444,112.20 466,317.81 489,633.70 514,115.39
Permits and Licenses 11,770.00 11,770.00 11,770.00 11,770.00 11,770.00
Benefits Expense 483,503.00 483,503.00 483,503.00 483,503.00 483,503.00
Promotion 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Depreciation Expense 358,985.88 3,765,496.88 358,985.88 3,914,058.78 358,985.88 4,070,423.78 351,599.21 4,227,632.85 288,388.96 4,337,701.88
Net Income 4,562,456.12 5,429,041.87 6,398,456.91 7,489,179.37 8,761,887.20
 Beeseta Farm

Projected Statement of Changes of Equity

For the year ended December 31, 2022

Year 1 Year 2 Year 3 Year 4 Year 5

Capital, beginning 15,000,000.00 19,562,456 24,991,498 31,389,955 38,879,134
Net Income 4,562,456.12 5,429,041.87 6,398,456.91 7,489,179.37 8,761,887.20
Capital, Ending 19,562,456.12 24,991,498 31,389,955 38,879,134 47,641,021
 Beeseeta Farm

Projected Statement of Financial Position

As of December 31, 2022

Year 1 Year 2 Year 3 Year 4

ASSETS
Cash 2705533.00 8,493,560.76 15,251,003.64 23,091,781.85
Machinery and Equipment 1186726.00 1186726.00 1186726.00 1186726.00
Accumulated Depreciation - Machinery and Equipment 88,882.32 1097843.68 177,764.64 1008961.36 266,646.96 920079.04 355,529.28 831196.72
Furnitures and Fixtures 781,608.00 781,608.00 781,608.00 781,608.00
Accumulated Depreciation - Furnitures and Fixtures 103,723.14 677,884.86 207,446.28 574,161.72 311,169.42 470,438.58 407,505.89 374,102.11
Technological Requirements 437,075.00 437,075.00 437,075.00 437,075.00
Accumulated Depreciation - Technological Requirements 66,380.42 370,694.58 132,760.84 304,314.16 199,141.26 237,933.74 265,521.68 171,553.32
Land 3,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00
Building 41,680,500.00 41,680,500.00 41,680,500.00 41,680,500.00
Accumulated Depreciation - Building 100,000 41,580,500 200,000.00 41,480,500.00 300,000.00 41,380,500.00 400,000.00 41,280,500.00
Biological Assets 130,000.00 130,000.00 130,000.00 130,000.00
Total Assets 49562456.12 54,991,498.00 61389955 68879134

Liabilities and Equity

Loans 30,000,000 30,000,000 30,000,000 30,000,000
Owner's Capital 15,000,000 19,562,456 24,991,498 31,389,955
Retained Earnings 4,562,456 5,429,041.87 6,398,456.91 7,489,179.37
Total Liabilities and Equity 49,562,456.12 54,991,498 61,389,955 68,879,134