Chapter 5

FINANCIAL STUDY

This chapter presents the financial assumption, initial capital requirements and

cost and experience schedule.

Financial Assumption

1. Selling price of Hayai Online Shop products are in the following.

The researchers decide to sell products in a lower price than the competitor while

making sure to earn profit.

Product Price List

Item Original Price Mark-up Hayai Online

Price
Couple Shorts 190 40 230
Terno 150 50 200
Tees 170 80 250
Tees 170 80 250
Couple Shirts 180 30 210
Bag sling/ 130 50 180
Backpack
Ringer shirt 65 35 100
Sweater 160 40 200
Maybelline Lip 65 35 100
tint
Anti Radiation 120 60 180
Wallet 170 40 210

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 Comforter 400 40 440
Mac shaping 90 90 180
Brow
Make-up Set 140 80 220
(20pcs)
Holdlive set 200 100 300
Lipstick
Huda Beauty 130 70 200
Make-up
Earphone 50 10 150
Send me more 130 100 230
nudes lipstick
(4pcs)
Mac Fashion 140 140 280
Brow set (5pcs)
Keisha Terno 160 40 200
Kelly Bodycon 140 80 220
Dress
Cotton sando 60 90 150
Sanya 2-way 180 100 280
Dress
Couple 200 80 280
trackshorts
Couple shorts 200 80 280

2. Sales demand increases 10% per year.

3. Depreciation expense is computed in a straight line basis with an estimated useful life

of 3 years.

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Initial Capital Requirements

The partners agreed to contribute an equal sharing of capital in amount of

P15,000.00 each.

Initial Capital Requirements

Partners Ratio Invested Amounts

Jasmine V. Bulos 14.285% Php15,000.00

Tricia Mae E. Manansala 14.285% Php15,000.00

Charlene M. De Guzman 14.285% Php15,000.00

Frank J. Bastian 14.285% Php15,000.00

Jedeyah A. Monares 14.285% Php15,000.00

Patricia Mae F. Tagubaras 14.285% Php15,000.00

Angelo P. Villanueva 14.285% Php15,000.00

100% Php105,000.00

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 Cost and Expenses Schedule

Schedule 1: Purchase of Products/Inventory

Item Quantity per Schedule Unit Amount

Monthly Annually Price Monthly Annually

Couple 240 190 3,800 45,600
Shorts 20
T-shirts 240 170 3,400 40,800
20
Bag 240 130 2,600 31,200
20
Sweater 240 160 3,200 38,400
20
Maybelline 480 65 2,600 31,200
Liptint 40
Mac 96 90 720 8,640
Shaping 8
Brow
Make-up 120 140 1,400 16,800
brushes set 10
Huda 120 130 1,500 18,000
beauty 10
(make-up
set)
140 650 15,600
Mac
Fashion 8
Brow (set 96
5pcs)

10 120 150 750 13,440

Earphones

259,680
Total

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 Schedule 2: Salaries and Wages

Position Cost per Day Cost per Month Cost per Annual

Manager/ Bookkeeper P320.00 P9,600.00 P115,200.00

Head of Delivery/ Head of P300.00 P9,000.00 P108,000.00
Packaging

Head of Marketing/ Head of P300.00 P9,000.00 P108,000.00

Customer Service
Customer assistant P290.00 P8,700.00 104,400.00
P1,210.00 P36,300.00 P435,600.00
Total

Schedule 3: Office Supplies

Item Quantity Price Monthly Annually

Record book 1 50.00 50.00 600.00

Official Receipt 10 25.00 250.00 3000

Ballpen 4 5.00 20.00 240

Stapler 2 32.00 - 64.00

Staple Wire 53 45.00 135.00 1,620

Total P455.00 P5,524.00

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 Schedule 4: Packaging

Item Quantity Price Monthly Annually

Plastic bags 3 90.00 270.00 3,240.00

Boxes 10 10.00 100.00 1,200.00

Bubble Wrap 1 180.00 180.00 2,160.00

Total P550.00 P6,600.00

Schedule 5: Promotional Expense

Cost No. of Months Annual Cost

Social Media 1,200.00 1 1000.00

Total P1,200.00

Schedule 6: Office Expenses

Item Cost Monthly Annually

Wifi (Internet P1,000.00 P1,000.00 P12,000.00

Access)

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 Total P12,000.00

Schedule 7: Office Furniture and Fixture

Item Quantity Price Amount Estimated Depreciation

useful life Expense

Table 1 750.00 750.00 3 years 250.00

Mono block 4 180.00 720.00 3 years 240.00

Ceiling Fan 1 990.00 990.00 3 years 330.00

Laptop 1 19,000.00 5 years 3,800.00
19,000.00
Wifi 1 1,500.00 1,500.00 3 years 500.00
(Router)

Total P22,960.00 P5,120.00

Schedule 8: Depreciation Expense

Item Cost Estimated 2020 2021 2022
Useful Life

Office
Furniture 22,960.00 ( Please 5,120.00 10,240.00 15,360.00
and Fixture see
schedule 6)

Total 22,960.00 5,120.00 10,240.00 15,360.00

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 Statement of Cost of Goods Sold

2020 2021 2022

Beginning Inventory
Add:
Purchase of Inventory/products 259,680.00 235,648.00 311,616.00

Overhead
Packaging 6,000.00 6,000.00 6,000.00

Cost of Goods Sold 265,680.00 291,648.00 317,616.00

Projected Cost 2020-2022

2020 2021 2022
259,680.00 235,648.00 311,616.00

Projected Demand and Sales for 2020-2022

Demand 2020 2021 2022

Couple shorts 10,000.00 11,000.00 12,000.00

T-shirts 15,000.00 16,500.00 18,000.00

Bag 15,000.00 16,500.00 18,000.00

Sweater 10,000.00 11,000.00 12,000.00

Maybelline Lip tint 20,000.00 22,000.00 24,000.00

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Mac shaping Brow 22,000.00 24,200.00 26,400.00
(set 5pcs)
Make-up brushes 16,000.00 17,600.00 19,200.00
set

Huda beauty 14,000.00 15,400.00 16,800.00

(make-up set)

Mac Fashion Brow 20,000.00 22,000.00 24,000.00

(set 5pcs)

Earphone 18,000.00 19,800.00 21,000.00

Total 160,000.00 176,00.00 192,000

Sales 2020 2021 2022

Couple shorts 144,000.00 158,400.00 172,800.00

T-shirts 180,000.00 198,000.00 216,000.00

Bag 180,000.00 198,000.00 216,000.00

Sweater 144,000.00 158,400.00 172,800.00

Maybelline Lip tint 240,000.00 264,000.00 288,000.00

Mac shaping Brow 264,000.00 290,400.00 316,800.00

(set 5pcs)
Make-up brushes 192,000.00 211,200.00 230,400.00
set

Huda beauty 168,000.00 184,800.00 201,600.00

(make-up set)

Mac Fashion Brow 240,000.00 264,000.00 288,000.00

(set 5pcs)

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 Earphone 216,000.00 237,600.00 259,200.00

Total 1,968,000.00 2,164,800.00 2,361,600.00

Hayai Online Shop

Projected Income Statement
For the year ended December 31, 2020-December 31, 2022
2020 2021 2022

Sales 1,968,000.00 2,164,800.00 2,361,600.00

Less: Cost of Goods

Sold 265,680.00 291,648.00 317,616.00

Gross Income 1,702,320.00 1,873,152.00 2,043,984.00

Less: Operating
expense

Salary 435,600 435,600 435,600

Office Supplies 5,524 5,524 5,524

Promotional 1,200.00 1,200.00 1,200.00

Expense
Office Expense 12,000.00 12,000.00 12,000.00

Depreciation 5,120.00 5,120.00 5,120.00

Total operating 488,244.00 488,244.00 488,244.00

expense

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Net Income 1,214,076.00 1,384,908.00 1,555,740.00

Hayai Online Shop

Projected Cash Flow Statement
For the year ended December 31, 2020- December 31, 2022

2020 2021 2022

Cash Inflows
Cash Beginning 1,333,736.00 2,735,764.00
Partners 105,000.00

Con.
Sales 1,968,000.00 2,164,800.00 2,361,600.00
Total Cash 2,073,000.00 3,498,536.00 5,097,364.00
Inflows

Less:
Cash Outflows
Purchased of Fixed 22,960.00
Assets

Purchase of 259,680.00 285,648.00 311,616.00

Inventory

Packaging 6,000.00 6,000.00 6,000.00

Salary 464,400.00 464,400.00 464,400.00
Office Supplies 5,524.00 5,524.00 5,524.00
Promotional 1,200.00 1,200.00 1,200.00
Expense
Office Expense 12,000.00 12,000.00 12,000.00

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Total Operating 771,764.00 774,772.00 800,740.00
Expense

Cash Balance, 1,301,236.00 2,691,264.00 4,252,124.00

End

Hayai Online Shop

Projected Balance Sheet
For the year ended December 31,2020-December 31, 2022
2020 2021 2022
Assets
Current Assets
Cash 1,301,236.00 2,691,264.00 4,252,124.00
Total Current 1,301,236.00 2,691,264.00 4,252,124.00
Assets
Non Current
Assets
Office Furniture 22,960.00 22,960.00 22,960.00
and Fixture
Total 22,960.00 22,960.00 22,960.00
Less: 5,120.00 10,240.00 15,360
Accumulated
Depreciation
Total Non 17,840.00 12,720.00 7,600.00
Current
Assets

Total Assets 1,319,076.00 2,703,984.00 4,259,724.00

Liabilities and
Equity
Current
Liabilities
Partners Equity

Partners 105,000 1,335,376.00 2,736,584.00

Contribution
Add: Net 1,214,076.00 1,384,908.00 1,555,740.00
Income

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 Total Liabilities and Equity 1,319,076.00 2,703,984.00 4,259,724.00

Financial Ratio

2020 2021 2022

Profit Margin
Net Income 1,214,076.00 1,384,908.00 1,555,740.00
Sales 1,968,000.00 2,164,800.00 2,361,600.00
61.7% 62.97% 65.88%
Return on
Investment

Net Income 1,214,076.00 1,384,908.00 1,555,740.00

Capital 105,000.00 105,000.00 105,000.00
11.56 13.19 14.82
Return on Asset
Net Income 1,214,076.00 1,384,908.00 1,555,740.00
Average Total 1,319,076.00 2,703,984.00 4,259,724.00
Asset

.92 .51 .37

Return on Equity

Net Income 1,214,076.00 1,384,908.00 1,555,740.00

Average Owner’s 105,000.00 105,000.00 105,000.00

Equity
11.56 13.19 14.82

Fixed Asset
Turnover
Net Sales 1,968,000.00 2,164,800.00 2,361,600.00

Fixed Asset 76,036.25 56,337.50 36,636.75

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Accumulated
Depreciation

110.31 169..52 310.74

Total Asset
Turnover

Net sales 1,968,000.00 2,164,800.00 2,361,600.00

Average Total 1,319,076.00 2,703,984.00 4,259,724.00

Asset

1.49 0.80 0.52

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