Pamantasan ng Lungsod ng Pasig

Alcalde Jose St. Kapasigan, Pasig City

College of Business and Accountancy

Financial Aspect of Shibori Clothing Manufacturing Company

In Partial Fulfillment
Of the Requirements for the Degree Bachelor
of Science in Business Administration major in
Marketing Management

Proponents:
Jumao-as, Lorie Mae A.
Macasinag, Jairyl L.
Marquez, Paula R.
Ramos, Tricia Mae
Rodriguez, Kathleen
 Financial Aspect

This chapter determines the potential investment needed for the product

proposed by the company. This chapter gives the idea if thhhe proposed product can

run in the industry and to assure that the business is feasible and viable. This chapter

also discusses the Statement of Financial. It also includes the Sales and Projected

Financial Statement such has Income Statement, Cash Flow, Business Sales and

Financial Analysis of the Business.

I. Overview

The chosen business is a tie dye t-shirt. It is named as Shibori clothing which

is a Japanese term that encompasses a wide variety of resist-dyeing techniques.

The business 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 the Clothing industry. Furthermore, The accounting period of the business will

be for the month of December.

II. Financial Assumption

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 for the month of December 2022 and will

use fiscal year accounting period.

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

10,000 php for the capital which in total of 50,000

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

4. The company has projected sales of 20,303 units for 1 month and is expected

to increase by 1% for the next year based on the population growth of Pasig

City. There will be remaining (10) finished goods in a year

5. Depreciation is computed based on straight line method.

6. The company is exempted from income tax under the BMBE law.

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

more capital in production cost.

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

cash.
III. Capital Investment

Table 1
Table of Proponents’ Capitalization

Proponent’s Name Amount %

Jumao-as, Lorie Mae 10,000 20%
Macasinag, Jairyl 10,000 20%
Marquez, Paula 10,000 20%
Ramos, Tricia 10 ,000 20%
Rodriguez, Kathleen 10 ,000 20%
Total 50,000 100%

Table 1 shows that each proponent has pledged a capital commitment of

ten thousand pesos (10,000), or twenty percent (20%) of the required fifty

thousand pesos (50,000) for the business's initial capital contribution.

IV. Pre- Operating Expense

Table 2
Table of Pre-Operating Expense
Pre-operating Expense
Monthly Yearly
Fixed Assets
Equipment 4,400 52,800.00
Furniture & Fixtures 450 5,400.00
Pre-operating ng Expense
Raw Materials 5,240 62,880.00
Rent Expense 5,000 60,000.00
Business Permit 500 6,000.00
Utilities Expense 830.53 9,966.36
Freight In 200 2,400.00
Office Supplies 189 2,268.00
Packaging 570 6,840.00
Total Cost 17,379.53 208,554.36
Cash on Hand 32,189.47
Total Capitalization 50,000
 The table 2 shows one (1) month and one (1) year pre operating expenses

of the busines.

V. Projected F/S and Schedules

Table 3
Schedule of Projected Sales

Product Price per Monthly Monthly Yearly

unit Units Sales

Shibori shirt 205 100 20,500 246,000

Table shows the one (1) monthly and yearly projected sales in pesos of

the business. The monthly income of the business is ₱ 20,500 in total of ₱246,

000 in a year.

Table 4
Schedule of Cost Of Good Sold

Shibori Clothing Manufacturing

Statement of Cost of Good Sold

For the Month Ended December 31, 2022

Direct (Raw) Materials Used 5,240

Direct Labor 3,810

Factory Overhead 8,357

Manufacturing Costs 17,407

Add: Beginning Work in Process -

Cost of Good Placed in Process

Less: Ending Work in Process -

Cost of Goods Manufactured 17,407

Add: Beginning Finished Goods -

Cost of Goods Available for Sale 17,407

Less: Ending Finished Goods 2,050

Cost of Cost of Good Sold 15,357

Table 5
Schedule of Selling Expense

Monthly
Advertising -
Sale Salaries 8,400
Total 8,120

Table 6
Schedule of Administrative Expense

Utilities 830.53
Barangay Permit 500

Depreciation- equipment 1,173.33

Depreciation -furniture and fixtures 83.33

Total Administrative expenses 2,587.19

Table 7
Equipment

Equipment
Quantity Unit cost Total cost
Item
Washing Machine w/ Dryer 1 ₱2,500.00 ₱2,500.00

Iron Table 2 ₱200.00 ₱400.00

Iron 2 ₱600.00 ₱1,200.00
Electric Fan 2 ₱150.00 ₱300.00

₱4,400.00
Total:

Table 7 shows the equipment use in the business operation.

Table 8
Furniture and Fixture
Furniture & Fixtures
Quantity Unit cost Total cost
Item
Tables 2 ₱100.00 ₱200.00
Chairs 5 ₱50.00 ₱250.00
₱450.00

Table 8 shows the furniture and fixture use in the business operation.

Table 9
Table of Depreciation

Equipment Unit cost Quantity Total cost Estimated Depreciation

Life expense
Washing 2,500.00 1 2,500.00 5 years 500.00
 Machine w/
dryer
Iron Table 200.00 2 400.00 3 years 133.33
Iron 600.00 2 1,200.00 5 years 240.00
Electric fan 150.00 2 300.00 1 year 300.00
Total 3,450.00 4,400.00 1,173.33
Furnitures and
Fixtures
Tables 100.00 2 200.00 6 years 33.33
Chairs 50.00 5 250.00 5 years 50.00
Total 150.00 450.00 83.33

The Table 9 shows the depreciation of Equipment and Furniture and

Fixtures.

Table 10
Office Supllies
OFFICE SUPPLIES
Quantity Unit cost Total cost
Item
Stapler 1 ₱50.00 ₱50.00
Tape 1 ₱20.00 ₱20.00
Ball pens 2 ₱7.00 ₱14.00
Receipt Booklet 2 ₱30.00 ₱60.00
Scissor 1 ₱45.00 ₱45.00
Total: ₱189.00

Table 10 shows the office supplies used in the business.

Table 11
Schedule of Packaging
PACKAGING
Item Quantity Unit cost Total cost
Craft Paper 50pcs ₱8.00 ₱400.00
Sticker 500pcs ₱0.05 ₱25.00
Jute String 10pcs ₱9.00 ₱90.00
Cutter 1pc ₱25.00 ₱25.00
Tape 5pcs ₱6.00 ₱30.00

₱570.00
Total:
 Table 11 shows the amount materials used for packaging.

Table 12
Projected Electricity Consumption
PROJECTED ELECTRICITY CONSUMPTION
Kilowatts
No. of Hours Kwh/ month x Rate
Appliances Watts Kilowatts consumed ANNUALLY
used/ day (9.74)
per month
Light 10 4 hours 0.05 1.55 ₱15.10 ₱181.2
Iron 8000 1 hour 2 62 ₱603.88 ₱7246.56
Clip fan 10 9 hours 0.09 2.79 ₱27.17 ₱326.04

Washing Machine w/ Dryer 125 15 mins. 0.12 3.72 ₱36.23

₱434.76
Total: ₱682.38 ₱8,188.56

Table 12 shows the electricity consumption of the Shibori Clothing Office.

It is predicted by getting the wattage and the price per kilowatt given in Pasig
City.
Table 13
Utilities Projection

UTILITIES
Operating Cost Expense DAILY MONTHLY ANNUALLY
Electricity ₱ 72.69 ₱682.38 ₱8,188.56
Water ₱ 4.93 ₱148.15 ₱1,777.80
Total: 830.53 9,966.36

Table 13 shows the projection of expenses for utilities of the business.

Work Schedule
Table 14
Work Schedule of the Employee

SCHEDULE OF STAFFS
Position Mon. Tues. Wed. Thurs. Fri. Sat. Sun.
Manager 10AM -7PM REST DAY 10AM -7AM REST DAY REST DAY 10AM -7PM REST DAY
Production Staff 1 REST DAY 10AM -7PM REST DAY 10AM -7PM REST DAY REST DAY 10AM -7PM
Production staff 2 REST DAY 10AM -7PM REST DAY 10AM -7PM REST DAY REST DAY 10AM -7PM
Operating Staff 1 REST DAY REST DAY 10AM -7PM REST DAY 10AM -7PM REST DAY REST DAY

Operating Staff 2 10AM -7PM REST DAY REST DAY REST DAY 10AM -7PM 10AM -7PM REST DAY

Table 14 shows the work schedule of the employees of Shibori Clothing

business.

Table of Compensation

Table 15
Schedule of wages
WAGES
NO. OF DAYS WEEKLY DAYS PER MONTHLY ANNUALLY
POSITION WAGE PER WEEK MONTH
Manager ₱150.00 3 ₱450.00 12 ₱1,800.00 21,600.00
Production Staff 1 ₱130.00 3 ₱390.00 12 ₱1,560.00 18,720.00
Production staff 2 ₱130.00 3 ₱390.00 12 ₱1,560.00 18,720.00
Operating Staff 1 ₱130.00 2 ₱260.00 8 ₱1,040.00 12,480.00
Operating Staff 2 ₱130.00 3 ₱390.00 12 ₱1,560.00 18,720.00
TOTAL: ₱670.00 14 ₱1,880.00 56 ₱7,520.00 90,240.00

Table 15 shows the schedule of wages for the manager, production and
operating staffs.
 Table 16
Schedule of Benefits

BENEFITS
Position SSS PHILHEALTH PAG IBIG
MONTHLY ANNUALLY MONTHLY ANNUALLY MONTHLY ANNUALLY
Manager ₱255.00 ₱3,060.00 ₱72.00 ₱864.00 ₱18.00 ₱216.00
Production Staff 1 ₱255.00 ₱3,060.00 ₱72.00 ₱864.00 ₱18.00 ₱216.00
Production staff 2 ₱255.00 ₱3,060.00 ₱72.00 ₱864.00 ₱18.00 ₱216.00
Operating Staff 1 ₱255.00 ₱3,060.00 ₱72.00 ₱864.00 ₱18.00 ₱216.00
Operating Staff 2 ₱255.00 ₱3,060.00 ₱72.00 ₱864.00 ₱18.00 ₱216.00
Total: ₱1,275.00 ₱15,300.00 ₱300.80 ₱4,320.00 ₱90.00 ₱1,080.00

Table 16 shows the monthly and annual salary of each proponent

including their contribution in SSS, PhilHealth and Pag-ibig.

Cash Flow
Financial Statement
Statement of Partner’s Equity

VI. Product Costing

Table 17
Schedule of Product Cost

52.40
Direct Materials
 38.10
Direct Labor
83.57
Factory Overhead
3.62
Infaltion rate (5%)
177.69
Total Product Cost

Mark-up (35%) 25.34

Selling Price 205

Table 17 shows the Suggested Retail Price ( SRP ) of the product amounting to 205
php.