1.

Overview of the Business, Product and Accounting Period

The chosen business is tie dye t-shirt. It will offer some various colors and

types of design patterns. Tie-dye is a term used to describe a number of resist

dyeing techniques and the resulting dyed products of these processes. The

process of tie-dye typically consists of folding, twisting, pleating, or crumpling

fabric or a garment, before binding with string or rubber bands, followed by the

application of dye or dyes.

Tie-dye is a concept that's used to designate a variety of resist dyeing

methods and the colored materials that come from them. Usually, to create a tie-

dye effect, cloth or a garment is folded, twisted, pleated, or crumpled, then bound

with string or rubber bands before dye or dyes are applied. Thus, the business

will be under Clothing industry. Furthermore, The accounting period of the

business will be for the month of December.

2. Financial Assumptions

The operation of the business will just be for the month December 2022.

Below are the Financial Assumption of the business:

Statement of Financial Assumptions

1. The business will launch its operations only for the month of December 2022.

2. . The proponents had a general partnership wherein each proponent provides

2,000 php for the capital.

3. The business will sell 100 pieces of tie dye t-shirt in one month operation.

4. The company will purchase raw materials and packaging to a supplier to save

more capital in production cost.

 5. The proponents will only make all purchases and payment of expenditures in

cash

3. Table of Proponents’ Capitalization

Proponent’s Name Amount %

Jumao-as, Lorie Mae 2,000 20%

Macasinag, Jairyl 2,000 20%

Marquez, Paula 2,000 20%

Ramos, Tricia 2,000 20%

Rodriguez, Kathleen 10,000 100%

4. Table of One Month Pre-operating Expenses/Activities with amounts

Pre- operating Expenses/ Amount

Activities

Purchasing Tools and Equipment

and Furniture and fixtures

Purchasing raw materials

Promotional approach for a

business
5. One Month Projected Sales, COGS ( Raw Mats, Direct Labor, Factory Overhead,

Raw Mats Inventory, Finished Goods Inventory) Selling Expenses, Administrative

Expenses, Table of Depreciation, Table of Compensation.

6. Product costing, Mark up, and SRP

Raw Materials Cost Quantity Unit Cost

T-shirt 70 100

Yarn/rubber 12 2 boxes

Dye 8 50

Packaging 8 50

Direct Labor

Factory

Overhead

Water 0

Container 89 5

Inflation Rate 5%

Production Cost

Mark up 35%

Selling Price