CHAPTER VIII

FORECASTED FINANCIAL STATEMENTS

i. Projected Daily Revenue

Forecasted Daily Revenue

2023
Population 172,605
The average number of households 43, 151
Target market (4.38%) 1,891
Projected monthly clients 126
Services Monthly Daily Service fee Service income
orders order Direct cost Direct total Direct cost Direct revenue
revenue
House Cleaning 278 9 P 950.00 P900.00 P1,850.00 P8,550.00 P8,100.00
Deep Cleaning 41 2 P1,030.00 P900.00 P1,930.00 P2,060.00 P1,800.00
Office Cleaning 22 1 P658.00 P587.00 P1,245.00 P658.00 P587.00
Kitchen Cleaning 35 1 P753.00 P597.00 P1,350.00 P753.00 P597.00
Sanitation Cleaning 33 1 P303.00 P697.00 P1,000.00 P303.00 P697.00
Total 409 14 12,324.00 11,781.00
Total daily revenue P24,105.00
Table 8-1: Projected Daily Revenue
ii. Forecasted Service Revenue
Number
Average service
services monthly demand Total monthly revenue of
price
months
House cleaning 278 ₱ 1,850.00 ₱ 514,300.00 12
Deep cleaning 41 ₱ 1,933.00 ₱ 79,253.00 12
Office cleaning 22 ₱ 1,353.00 ₱ 29,766.00 12
Kitchen cleaning 35 ₱ 1,258.00 ₱ 44,030.00 12
Sanitation cleaning 33 ₱ 1,003.00 ₱ 33,099.00 12
Total 409 ₱ 7,397.00 ₱ 700,448.00

2023 2024 2025 2026 2027

₱ 6,171,600.00 ₱ 6,480,180.00 ₱ 6,609,783.60 ₱ 6,741,979.27 ₱ 6,876,818.86

₱ 951,036.00 ₱ 998,587.80 ₱ 1,018,559.56 ₱ 1,038,930.75 ₱ 1,059,709.36
₱ 357,192.00 ₱ 375,051.60 ₱ 382,552.63 ₱ 390,203.68 ₱ 398,007.76
₱ 528,360.00 ₱ 554,778.00 ₱ 565,873.56 ₱ 577,191.03 ₱ 588,734.85
₱ 397,188.00 ₱ 417,047.40 ₱ 425,388.35 ₱ 433,896.11 ₱ 442,574.04
₱ 8,405,376.00 ₱ 8,825,644.80 ₱ 9,002,157.70 ₱ 9,182,200.85 ₱ 9,365,844.87
Table 8-2: Forecasted Service Revenue
 iii. Direct Cost
Monthly
services Average Direct cost
Orders MONTHLY TOTAL ANNUAL DIRECT COST
Equipment Equipment and Equipment and
and cleaning cleaning cleaning
Transportation Transportation Transportation
materials and materials and materials and
supplies supplies supplies
House
278 ₱ 236,300.00 ₱ 27,800.00 ₱ 2,835,600.00 ₱ 333,600.00
cleaning ₱ 850.00 ₱ 100.00
Deep
41 ₱ 38,253.00 ₱ 4,100.00 ₱ 459,036.00 ₱ 49,200.00
cleaning ₱ 933.00 ₱ 100.00
Office
22 ₱ 14,366.00 ₱ 2,200.00 ₱ 172,392.00 ₱ 26,400.00
cleaning ₱ 653.00 ₱ 100.00
Kitchen
35 ₱ 19,530.00 ₱ 3,500.00 ₱ 234,360.00 ₱ 42,000.00
cleaning ₱ 558.00 ₱ 100.00
Sanitation
33 ₱ 6,699.00 ₱ 3,300.00 ₱ 80,388.00 ₱ 39,600.00
cleaning ₱ 203.00 ₱ 100.00

2023 2024 2025 2026 2027

₱ 3,169,200.00 ₱ 3,327,660.00 ₱ 3,494,043.00 ₱ 3,668,745.15 ₱ 3,852,182.41
₱ 508,236.00 ₱ 533,647.80 ₱ 560,330.19 ₱ 588,346.70 ₱ 617,764.03
₱ 198,792.00 ₱ 208,731.60 ₱ 219,168.18 ₱ 230,126.59 ₱ 241,632.92
₱ 276,360.00 ₱ 290,178.00 ₱ 304,686.90 ₱ 319,921.25 ₱ 335,917.31
₱ 119,988.00 ₱ 125,987.40 ₱ 132,286.77 ₱ 138,901.11 ₱ 145,846.16
₱ 4,272,576.00 ₱ 4,486,204.80 ₱ 4,575,928.90 ₱ 4,667,447.47 ₱ 4,760,796.42
Table 8-3: Direct cost (equipment, cleaning supplies, and transportation)

iv. Direct Revenue

Services Monthly orders Average Direct revenue Total
House cleaning 278 ₱ 900.00 ₱ 250,200.00
Deep cleaning 41 ₱ 900.00 ₱ 36,900.00
Office cleaning 22 ₱ 600.00 ₱ 13,200.00
Kitchen cleaning 35 ₱ 600.00 ₱ 21,000.00
Sanitation cleaning 33 ₱ 700.00 ₱ 23,100.00

2023 2024 2025 2026 2027

₱ 3,002,400.00 ₱ 3,152,520.00 ₱ 3,310,146.00 ₱ 3,475,653.30 ₱ 3,649,435.97
₱ 442,800.00 ₱ 464,940.00 ₱ 488,187.00 ₱ 512,596.35 ₱ 538,226.17
₱ 158,400.00 ₱ 166,320.00 ₱ 174,636.00 ₱ 183,367.80 ₱ 192,536.19
₱ 252,000.00 ₱ 264,600.00 ₱ 277,830.00 ₱ 291,721.50 ₱ 306,307.58
₱ 277,200.00 ₱ 291,060.00 ₱ 305,613.00 ₱ 320,893.65 ₱ 336,938.33
₱ 4,132,800.00 ₱ 4,339,440.00 ₱ 4,556,412.00 ₱ 4,784,232.60 ₱ 5,023,444.23
Table 8-4: Direct Revenue (average charges per service)
 v. Projected Comprehensive Income
CLEAN FIRST

PROJECTED COMPREHENSIVE INCOME

2023 2024 2025 2026 2027

Total Service Revenue ₱ 8,405,376.00 ₱ 8,825,644.80 ₱ 9,002,157.70 ₱ 9,182,200.85 ₱ 9,365,844.87
Direct Cost (4,272,576.00) (4,486,204.80) (4,575,928.90) (4,667,447.47) (4,760,796.42)
Gross profit 4,132,800.00 4,339,440.00 4,426,228.80 4,514,753.38 4,605,048.44
OPERATING EXPENSES
Rent Expense ₱ 120,000.00 ₱ 120,000.00 ₱ 120,000.00 ₱ 120,000.00 ₱ 120,000.00
Utilities Expense 107,064.00 107,064.00 107,064.00 107,064.00 107,064.00
Salaries Expense 616,812.00 647,652.60 680,035.23 714,036.99 749,738.84
Fringe Benefits Expense 4,650.00 4,882.50 5,126.63 5,382.96 5,652.10
Sanitary Tools and Supplies
Expense
14,100.00 ₱ 14,805.00 15,545.25 16,322.51 17,138.64
Office stationery and Supplies 8,931.30 9,377.87 9,846.76 10,339.10
Expense 8,506.00
Cleaning Supplies Expense 881,280.00 925,344.00 971,611.20 1,020,191.76 1,071,201.35
Other cleaning supplies 142,030.00 149,131.50 156,588.08 164,417.48 172,638.35
Repair & Maintenance 66,000.00 69,300.00 72,765.00 76,403.25 80,223.41
Advertising expense 30,245.00 30,245.00 - - -
Machinery and Equipment -
Depreciation Expense
51,857.84 51,857.84 51,857.84 51,857.84 51,857.84
Office Equipment -Depreciation
Expense
6,446.30 6,446.30 6,446.30 6,446.30 6,446.30
Furniture & Fixture -
Depreciation Expense
8,476.66 8,476.66 8,476.66 8,476.66 8,476.66
Leasehold Improvement -
Depreciation Expense
11,945.51 11,945.51 11,945.51 11,945.51 11,945.51
Taxes & Licenses 12,030.00 12,030.00 12,030.00 12,030.00 12,030.00
Insurance 66,000.00 66,000.00 66,000.00 66,000.00 66,000.00
TOTAL OPEX ₱ 2,147,443.31 ₱ 2,234,112.21 ₱ 2,294,869.56 ₱ 2,390,422.02 ₱ 2,490,752.10
TOTAL INCOME ₱ 1,985,356.69 ₱ 2,105,327.79 ₱ 2,131,359.25 ₱ 2,124,331.36 ₱ 2,114,296.34
Provision of Income Tax: 30% 30% 30% 30% 30%
Income Tax Expense ₱ 595,607.01 ₱ 631,598.34 ₱639,407.77 ₱ 637,299.41 ₱634,288.90

Net Income ₱ 1,389,749.68 ₱ 1,473,729.45 ₱ 1,491,951.47 ₱ 1,487,031.95 ₱ 1,480,007.44

Table 8-5: Projection of Income Statement

Direct cost – see Table 8-3

 vi. Projected Cash Flow
CLEAN FIRST
PROJECTED CASH FLOWS
Cash Flow from Operating
Activities 2023 2024 2025 2026 2027
cash received ₱ 8,405,376.00 ₱ 8,825,644.80 ₱ 9,002,157.70 ₱ 9,182,200.85 ₱ 9,365,844.87
cash outflow from operating
Payment for Rent Expense (₱ 120,000.00) (₱ 120,000.00) (₱ 120,000.00) (₱ 120,000.00) (₱ 120,000.00)
Payment for Salaries Expense (616,812.00) (647,652.60) (680,035.23) (714,036.99) (749,738.84)
Payment for Utilities expense (107,064.00) (107,064.00) (107,064.00) (107,064.00) (107,064.00)
Payment of Repair and
(66,000.00) (69,300.00) (72,765.00) (76,403.25) (80,223.41)
Maintenance
Payment for Cleaning Supplies
(881,280.00) (925,344.00) (971,611.20) (1,020,191.76) (1,071,201.35)
Expense
Payment of Sanitary Tools and
(14,100.00) (14,805.00) (15,545.25) (16,322.51) (17,138.64)
Supplies Expense
Office stationery and Supplies
(8,506.00) (8,931.30) (9,377.87) (9,846.76) (10,339.10)
Expense
Fringe Benefits Expense (4,650.00) (4,882.50) (5,126.63) (5,382.96) (5,652.10)
Payment of Insurance Expense (66,000.00) (66,000.00) (66,000.00) (66,000.00) (66,000.00)
Payment for Registration of
(12,030.00) (12,030.00) (12,030.00) (12,030.00) (12,030.00)
the Business
Purchase of other supplies (142,030.00) (149,131.50) (156,588.08) (164,417.48) (172,638.35)
Payment for Advertising
(30,245.00) (30,245.00) - - -
Expense
Payment for Tax expense (595,607.01) (631,598.34) (639,407.77) (637,299.41) (634,288.90)
payment for cleaning materials
(4,272,576.00) (4,486,204.80) (4,575,928.90) (4,667,447.47) (4,760,796.42)
and transportation
Total Expense: -₱ 6,936,900.01 -₱ 7,273,189.04 -₱ 7,431,479.91 -₱ 7,616,442.59 -₱ 7,807,111.12
Net Cash Provided by
₱ 1,468,475.99 ₱ 1,552,455.76 ₱ 1,570,677.78 ₱ 1,565,758.26 ₱ 1,558,733.75
Operating Activities:
Investing Activities:
Purchase of Machinery and
(471,250.00) - - - -
Equipment
Purchase of Furniture and
(64,500.00) - - - -
Fixtures
Purchase of Office Equipment (40,629.00) - - - -
Cash Outlay for Leasehold
(185,196.00) - - - -
Improvement
Net Cash Provided by
-₱ 761,575.00
Investing Activities:
Finance Activities:
Partners Capital ₱ 1,600,000.00
Partners Withdrawal (138,974.97) (589,491.78) (596,780.59) (594,812.78) (592,002.98)
Total Partners Capital: 1,461,025.03 (589,491.78) (596,780.59) (594,812.78) (592,002.98)
Net Cash Provided by Finance
₱ 1,461,025.03 -₱ 589,491.78 -₱ 596,780.59 -₱ 594,812.78 -₱ 592,002.98
Activities:
Net Increase (Decrease) in
2,167,926.02 962,963.98 973,897.19 970,945.48 966,730.77
Cash
Beg. Cash Balance: 2,167,926.02 3,130,890.00 4,104,787.20 5,075,732.68
Ending Cash Balance ₱ 2,167,926.02 ₱ 3,130,890.00 ₱ 4,104,787.20 ₱ 5,075,732.68 ₱ 6,042,463.45
Table 8-6: Projection of cash flows
 vii. Forecasted Financial position
CLEAN FIRST
PROJECTED FINANCIAL POSITION
ASSETS 2023 2024 2025 2026 2027
Current Assets:
Cash ₱ 2,167,926.02 ₱ 3,130,890.00 ₱ 4,104,787.20 ₱ 5,075,732.68 ₱ 6,042,463.45
Total Current Assets ₱ 2,167,926.02 ₱ 3,130,890.00 ₱ 4,104,787.20 ₱ 5,075,732.68 ₱ 6,042,463.45
Non-Current Assets
Machinery and Equipment ₱ 471,250.00 ₱ 419,392.16 ₱ 367,534.32 ₱ 315,676.48 ₱ 263,818.64
Less: Cleaning Equipment- 51,857.84 51,857.84 51,857.84 51,857.84 51,857.84
Accumulated Depreciation
Net Book Value 419,392.16 367,534.32 315,676.48 263,818.64 211,960.80

Office Equipment 40,629.00 34,182.70 27,736.40 21,290.10 14,843.80

Less Office Equipment - 6,446.30 6,446.30 6,446.30 6,446.30 6,446.30
Accumulated Depreciation

Net Book Value 34,182.70 27,736.40 21,290.10 14,843.80 8,397.50

Furniture & Fixture 64,500.00 56,023.34 47,546.68 39,070.02 30,593.36

Less: Furniture & Fixture- 8,476.66 8,476.66 8,476.66 8,476.66 8,476.66

Accumulated Depreciation
Net Book Value 56,023.34 47,546.68 39,070.02 30,593.36 22,116.70

Leasehold Improvement 185,196.00 173,250.49 161,304.98 149,359.47 137,413.96

Leasehold Improvement- 11,945.51 11,945.51 11,945.51 11,945.51 11,945.51

Accumulated Depreciation

Net Book Value 173,250.49 161,304.98 149,359.47 137,413.96 125,468.45

Total Non-Current Assets: 682,848.69 604,122.38 525,396.07 446,669.76 367,943.45
Total Assets: ₱ 2,850,774.71 ₱ 3,735,012.39 ₱ 4,630,183.27 ₱ 5,522,402.44 ₱ 6,410,406.90
LIABILITY & PARTNER'S
EQUITY
Liabilities - - - - -
Total Liabilities - - - - -
Partner's Equity:
Partner's Capital 1,600,000.00 2,850,774.71 3,735,012.39 4,630,183.27 5,522,402.44
Withdrawal (138,974.97) (589,491.78) (596,780.59) (594,812.78) (592,002.98)
Net Income (loss) 1,389,749.68 1,473,729.45 1,491,951.47 1,487,031.95 1,480,007.44
Total Owner's Equity: 2,850,774.71 3,735,012.39 4,630,183.27 5,522,402.44 6,410,406.90
Total Liabilities and ₱ 2,850,774.71 ₱ 3,735,012.39 ₱ 4,630,183.27 ₱ 5,522,402.44 ₱ 6,410,406.90
Owner's Equity:
Table 8-7: Projection of Financial Position