TOTAL PROJECT COST

Project Cost is the total funds needed to complete the project or work that consists
of a Direct Cost and Indirect Cost. The Project Costs are any expenditures made or
estimated to be made, or monetary obligations incurred or estimated to be incurred
to complete the project which are listed in a project baseline. The table below shows
the total project cost for Banana Milk. The total project cost is P900,000.00.
TABLE 5. 0 PROJECT COST

Cost Category Description Total Cost

Fees and Permits

Certificate of Business Name Registration 530.00
Brgy. Clearance 135.00
Mayor's Permit/ Business Permit 500.00
BIR registration 630.00
1,795.00

Administrative
Renovation 32,955.00
Rent 42,000.00
Office Furniture and Fixtures 5,100.00
Office Equipment 2,900.00
Office Supplies 2,800.00
85,755.00

Production Cost
Production Furniture and Fixtures 3,800.00
Production Equipment 25,650.00
Production Supplies 2,540.00
Raw Materials 270,848.00
Salary 118,300.00
421,138.00

Project Cost 508,688.00

Working Capital 391,312.00

TOTAL PROJECT COST 900,000.00

AMORTIZATION
Amortization is an accounting technique used to periodically lower the book
value of a loan or an intangible asset over a set period of time. Concerning a
loan, amortization focuses on spreading out loan payments over time. When
applied to an asset, amortization is similar to depreciation.
The table below shows the loan amortization for Banana milk. The
proponents assumed to loan 50% of the total project cost. The loan amounts
P450,000, term of 6 years, interest rate of 12%, and in an annual basis. (See
Table 5.1)
TABLE 5.1 AMORTIZATION
Loan Amount: 450,000.00
Term 5
Interest Rate: 12%
Basis: Annually
Total Principal Payment: 450,000.00
Total Interest Paid: 270,000.00

YEAR AMORTIZATION PRINCIPAL INTEREST BALANCE

0 450,000.00
1 144,000.00 90,000.00 54,000.00 360,000.00
2 144,000.00 90,000.00 54,000.00 270,000.00
3 144,000.00 90,000.00 54,000.00 180,000.00
4 144,000.00 90,000.00 54,000.00 90,000.00
5 144,000.00 90,000.00 54,000.00 -
TOTAL 720,000.00 450,000.00 270,000.00 -
 COST OF GOODS SOLD
Cost of goods sold (COGS) is the direct cost of making a company’s
product. It is an important line on your income statement that can tell you a lot
about your financial performance, efficiency and profitability. It includes costs such
as raw materials and labor that vary depending on the amount of product you
produce. It doesn’t include indirect costs that the business incurs regardless of how
much is produced—for example, office expenses, administrative salaries or
marketing costs.
The table below shows cost of goods sold projections of Banana Milk. For
2023, the cost of goods sold is P402,513.60. And by 2027, the cost of goods sold
amounts to P470,867.15.
TABLE 5.2 COST OF GOODS SOLD

Banana Milk
Statements of Cost of Good Sold Projections
For the Year Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

RAW MATERIALS USED
Raw Materials Inventory, Beginning - 5,416.96 5,687.81 5,972.20 6,270.81
Purchases(Raw Materials) 4.3 270,848.00 284,390.40 298,609.92 313,540.42 329,217.44
Raw Materials Available for Sale 270,848.00 289,807.36 304,297.73 319,512.61 335,488.25
Less:Raw Materials Inventory, End 4.4 5,416.96 5,687.81 5,972.20 6,270.81 6,584.35
Cost of Raw Materials Used 265,431.04 284,119.55 298,325.53 313,241.81 328,903.90
DIRECT LABOR 2.1 118,300.00 118,300.00 118,300.00 118,300.00 118,300.00
MANUFACTURING OVERHEAD
Water Expense 4.7 4,500.00 4,725.00 5,041.58 5,379.36 5,739.78
Electric Expense 4.8 7,020.00 7,371.00 7,864.86 8,391.80 8,954.05
Production Supplies 4.6 2,540.00 2,667.00 2,845.69 3,036.35 3,239.79
Dep'n Expense-Production Furniture & Fixtures 4.0 760.00 760.00 760.00 760.00 760.00
Dep'n Expense- Production Equipment 4.1 5,130.00 5,130.00 5,130.00 5,130.00 5,130.00
Total Manufacturing Overhead 19,950.00 20,653.00 21,642.12 22,697.51 23,823.62
TOTAL MANUFACTURING COSTS 403,681.04 423,072.55 438,267.65 454,239.32 471,027.51
Add:Work in Process, Beg.
Total Cost of Goods Placed in Process 403,681.04 423,072.55 438,267.65 454,239.32 471,027.51
Less:Work in Process, End
Cost of Goods Manufactured 403,681.04 423,072.55 438,267.65 454,239.32 471,027.51
Add:Finished Goods, Beg. - 1,167.44 1,287.11 1,419.04 1,564.49
Cost of Goods Available for Sale 403,681.04 424,240.00 439,554.76 455,658.35 472,592.00
Less:Finished Goods, End 3.10 1,167.44 1,287.11 1,419.04 1,564.49 1,724.85
COST OF GOODS SOLD 402,513.60 422,952.89 438,135.72 454,093.87 470,867.15

INCOME STATEMENT
An income statement is one of the three important financial statements used for
reporting a company’s financial performance over a specific accounting period.
The other two key statements are the balance sheet and the cash flow statement.
The income statement focuses on the revenue, expenses, gains, and losses of
a company during a particular period. Also known as the profit and loss (P&L)
statement or the statement of revenue and expense, an income statement
provides valuable insights into a company’s operations, the efficiency of its
management, underperforming sectors, and its performance relative to industry
peers.
The table below shows the income statement projections of Banana Milk for
 the years ended December 31, 2023 through 2027.
TABLE 5.3 INCOME STATEMENT

Banana Milk
Statements of Income Projections
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

Sales 3.8 895,864.32 990,520.88 1,092,049.27 1,203,984.32 1,327,392.71

Less Cost of Sold 5.2 402,513.60 422,952.89 438,135.72 454,093.87 470,867.15
Gross Profit 493,350.72 567,567.99 653,913.54 749,890.45 856,525.56
Less Operating Expenses:
Regulatory Fees 2.3 1,795.00 1,265.00 1,265.00 1,265.00 1,265.00
Water Expense 4.8 1,500.00 1,575.00 1,680.53 1,793.12 1,913.26
Electricity Expense 4.7 3,780.00 3,969.00 4,234.92 4,518.66 4,821.41
Rent Expense 5.1 42,000.00 42,000.00 42,000.00 42,000.00 42,000.00
Interest Expense 5.1 54,000.00 54,000.00 54,000.00 54,000.00 54,000.00
Office Supplies Expense 2.9 2,800.00 2,940.00 3,087.00 3,241.35 3,403.42
SSS Contributions Expense 2.2 10,380.00 10,380.00 10,380.00 10,380.00 10,380.00
HDMF Contributions Expense 2.2 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
PHIC Contributions Expense 2.2 2,184.00 2,184.00 2,184.00 2,184.00 2,184.00
Depreciation Expense:
Building Renovation 2.4 6,591.00 6,591.00 6,591.00 6,591.00 6,591.00
Office Furniture and Fixtures 2.6 1,020.00 1,020.00 1,020.00 1,020.00 1,020.00
Office Equipment 2.7 580.00 580.00 580.00 580.00 580.00
Total Operating Expenses 127,830.00 127,704.00 128,222.45 128,773.13 129,358.09
Operating Income before Tax 365,520.72 439,863.99 525,691.10 621,117.32 727,167.47
Less: Income Tax 17,328.11 30,472.80 47,638.22 66,723.46 87,933.49
NET INCOME 348,192.62 409,391.19 478,052.88 554,393.85 639,233.97
 OWNER’S EQUITY
Owner’s Equity is defined as the proportion of the total value of a
company’s assets that can be claimed by its owners (sole proprietorship or
partnership) and by its shareholders (if it is a corporation). It is calculated by
deducting all liabilities from the total value of an asset (Equity = Assets –
Liabilities).
The table below shows the statement of changes in equity projections of
Banana Milk for the years ended December 31, 2023 through 2027. In 2023, it
amounts to P890,554.18, and by 2027, it amounts to P3,458,883.71.
TABLE 5.4 OWNER’S EQUITY

Banana Milk
Statements of Changes in Equity Projections
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

Capital Beginning - 778,192.62 1,167,583.81 1,625,636.68 2,160,030.54
Add: Net Income 5.3 348,192.62 409,391.19 478,052.88 554,393.85 639,233.97
Initial Investment 5.1 450,000.00 - - - -
TOTAL 798,192.62 1,187,583.81 1,645,636.68 2,180,030.54 2,799,264.51
Less: Personal Drawings 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Capital End 778,192.62 1,167,583.81 1,625,636.68 2,160,030.54 2,779,264.51

CASH FLOW
The term cash flow refers to the net amount of cash and cash equivalents
being transferred in and out of a company. Cash received represents inflows, while
money spent represents outflows. A company’s ability to create value for
shareholders is fundamentally determined by its ability to generate positive cash
flows or, more specifically, to maximize long-term free cash flow (FCF).
 The table below shows the statement of cash flows projections of Banana
Milk for the years ended December 31, 2023 to 2027. For 2023, the cash balance at
the end of the period amounts to P1,202,572.90.
TABLE 5.5 STATEMENT OF CASH FLOWS PROJECTIONS

Banana Milk
Statement of Cash Flows Projections
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

Cash Flows from Operating Activities

Net Income before tax 5.3 365,520.72 439,863.99 525,691.10 621,117.32 727,167.47
Adjustments to reconcile net income to net cash
provided by operating activities
Income Tax 5.3 (17,328.11) (30,472.80) (47,638.22) (66,723.46)
Depreciation Expense
Building Renovation 2.4 6,591.00 6,591.00 6,591.00 6,591.00 6,591.00
Office Furniture and Fixtures 2.6 1,020.00 1,020.00 1,020.00 1,020.00 1,020.00
Office Equipment 2.7 580.00 580.00 580.00 580.00 580.00
Production Furniture & Fixtures 4.0 760.00 760.00 760.00 760.00 760.00
Production Equipment 4.1 5,130.00 5,130.00 5,130.00 5,130.00 5,130.00
Increase in Accounts Receivable 5.6 (89,586.43) (9,465.66) (10,152.84) (11,193.50) (12,340.84)
Increase in Raw Materials Inventory 5.6 (1,167.44) (119.66) (131.93) (145.45) (160.36)
Increase in Finished Goods Inventory 5.6 (5,416.96) (270.85) (284.39) (298.61) (313.54)
Increase in Accounts Payable 5.6 20,125.68 1,021.96 759.14 797.91 838.66
Increase in Rent Payable 5.6 42,000.00
Increase in SSS Contributions Payable 5.6 10,380.00
Increase in HDMF Contributions Payable 5.6 1,200.00
Increase in PHIC Contributions Payable 5.6 2,184.00
Net cash provided by (used in) operating activities 359,320.57 427,782.68 499,489.28 576,720.44 662,548.93
Cash Flows from Investing Activities
Acquisitions of:
Building Renovation 2.4 (32,955.00)
Office Furniture and Fixtures 2.6 (5,100.00)
Office Equipment 2.7 (2,900.00)
Production Furniture and Fixtures 4.1 (3,800.00)
Production Equipment 4.0 (25,650.00)
Net cash provided by (used in) investing activities (70,405.00)
Cash Flows from Financing Activities
Cash received as investments by owners 5.4 450,000.00
Cash received from borrowings 5.1 450,000.00
Loan Payments 5.1 (90,000.00) (90,000.00) (90,000.00) (90,000.00) (90,000.00)
Owner's personal drawings 5.4 (20,000.00) (20,000.00) (20,000.00) (20,000.00) (20,000.00)
Net cash provided by (used in) financing activities 790,000.00 (110,000.00) (110,000.00) (110,000.00) (110,000.00)
Net increase/(decrease) in cash 1,078,915.57 317,782.68 389,489.28 466,720.44 552,548.93
Cash Balance at the Beginning of the Period - 1,078,915.57 1,396,698.24 1,786,187.53 2,252,907.97
Cash Balance at the End of the Period 1,078,915.57 1,396,698.24 1,786,187.53 2,252,907.97 2,805,456.89
 FINANCIAL POSITION
The financial position of a company is measured by the performance it
takes in company financial statements: a positive and growing cash flow
statement; growing profits in the profit and loss statement; and a balance of
assets, liabilities, and owner’s equity in the balance sheet.
The table below shows the projection of financial position of Banana Milk
for the year 2023 to 2027.
TABLE 5.6 FINANCIAL POSITION
Banana Milk
Statements of Financial Position Projections
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

ASSETS
Current Assets
Cash on Hand 5.5 1,078,915.57 1,396,698.24 1,786,187.53 2,252,907.97 2,805,456.89
Accounts Receivable 5.3 89,586.43 99,052.09 109,204.93 120,398.43 132,739.27
Raw Materials Inventory 5.2 5,416.96 5,687.81 5,972.20 6,270.81 6,584.35
Finished Goods Inventory 5.2 1,167.44 1,287.11 1,419.04 1,564.49 1,724.85
Total Current Assets 1,175,086.40 1,502,725.25 1,902,783.69 2,381,141.69 2,946,505.36
Non Current Assets
Building Renovation 5.5 26,364.00 19,773.00 13,182.00 6,591.00 -
Office Furniture and Fixtures 5.5 4,080.00 3,060.00 2,040.00 1,020.00 -
Office Equipment 5.5 2,320.00 1,740.00 1,160.00 580.00 -
Production Furniture and Fixtures 5.5 3,040.00 2,280.00 1,520.00 760.00 -
Production Equipment 5.5 20,520.00 15,390.00 10,260.00 5,130.00 -
Total Non Current Assets 56,324.00 42,243.00 28,162.00 14,081.00 -
TOTAL ASSETS 1,231,410.40 1,544,968.25 1,930,945.69 2,395,222.69 2,946,505.36

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Rent Payable 5.1 42,000.00 42,000.00 42,000.00 42,000.00 42,000.00
Loans Payable 5.1 90,000.00 90,000.00 90,000.00 90,000.00 -
Income Tax Payable 5.3 17,328.11 30,472.80 47,638.22 66,723.46 87,933.49
SSS Contributions Payable 5.3 10,380.00 10,380.00 10,380.00 10,380.00 10,380.00
HDMF constributions Payable 5.3 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
PHIC Constributions Payable 5.3 2,184.00 2,184.00 2,184.00 2,184.00 2,184.00
Accounts Payable 5.2 20,125.68 21,147.64 21,906.79 22,704.69 23,543.36
Total Current Liabilities 183,217.79 197,384.44 215,309.01 235,192.16 167,240.85
Non Current Liabilities
Loans Payable - Long Term Portion 5.1 270,000.00 180,000.00 90,000.00 - -
Total Non Current Liabilities 270,000.00 180,000.00 90,000.00 - -
TOTAL LIABILITIES 453,217.79 377,384.44 305,309.01 235,192.16 167,240.85
Owner's Equity 5.4 778,192.62 1,167,583.81 1,625,636.68 2,160,030.54 2,779,264.51
TOTAL LIABILITIES AND OWNER'S EQUITY 1,231,410.40 1,544,968.25 1,930,945.69 2,395,222.69 2,946,505.36

FINANCIAL ANALYSIS
Financial analysis is the process of examining a company’s performance
in the context of its industry and economic environment in order to arrive at a
decision or recommendation. Often, the decisions and recommendations addressed
by financial analysts pertain to providing capital to companies—specifically, whether
to invest in the company’s debt or equity securities and at what price.
The table below shows the projection of financial statements analysis of
Banana Milk for the year 2023 to 2027.
TABLE 5.7 FINANCIAL STATEMENT ANALYSIS

Banana Milk
Financial Statement Analysis
For the Projected Years Ended December 31, 2023 through 2027

2023 2024 2025 2026 2027

Liquidity Ratios
Current Ratio current assets 6.41 7.61 8.84 10.12 17.62
current liabilities

Quick Ratio quick assets 6.38 7.58 8.80 10.09 17.57

current liabilities

Profitability Ratios
Return on Total Assets net income 0.28 0.26 0.25 0.23 0.22
total assets

Return on Sales net income 0.39 0.41 0.44 0.46 0.48

sales

Return on Equity net income 0.45 0.35 0.29 0.26 0.23

equity
BREAK-EVEN ANALYSIS
A break-even analysis is a financial calculation that weighs the costs of a
new business, service or product against the unit sell price to determine the point at
which you will break even. In other words, it reveals the point at which you will have
sold enough units to cover all of your costs. At that point, you will have neither lost
money nor made a profit.
The table below shows the break-even analysis of Banana Milk for the
year 2023 to 2027.
TABLE 5.8 BREAK-EVEN ANALYSIS
Banana Milk
Break-Even Analysis
For the Years Ended December 31, 2023 through 2027

Asumptions
Selling Price: 60.00
Variable Cost 25.98
Fixed Cost 127,830.00

Calculated Break-Even
Break-Even Sales Revenue 225,481.39
Break-Even Sales Units 3,758.02

Profit and Loss Statement

Sales Units 3,758.02
Sales 225,481.39
Less: Cost of Goods Sold 97,651.39
Gross Profit 127,830.00
Less: Fixed Costs 127,830.00
Net Profit -
COMMON-SIZE STATEMENTS OF COST OF GOODS SOLD

Common-Size Statements of Cost of Goods Sold (COGS) measures the

“direct cost” incurred in the production of any goods or services. It includes
material cost, direct labor cost, and direct factory overheads, and is directly
proportional to revenue.
The table below shows the projections of the common-size statements of
cost of goods sold of Banana Milk for the year 2023 to 2027.
TABLE 5.9 COMMON-SIZE STATEMENTS OF COST OF GOODS SOLD
PROJECTIONS

Banana Milk
Common-size Statements of Cost of Goods Sold Projections
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

RAW MATERIALS USED

Raw Materials Inventory, Beginning 5.2 0.00% 1.28% 1.30% 1.32% 1.33%
Purchases(Raw Materials) 5.2 67.29% 67.24% 68.15% 69.05% 69.92%
Raw Materials Available for sale 5.2 67.29% 68.52% 69.45% 70.36% 71.25%
Less:Raw Materials Inventory, End 5.2 1.35% 1.34% 1.36% 1.38% 1.40%
Cost of Materials Used 65.94% 67.18% 68.09% 68.98% 69.85%
DIRECT LABOR 5.2 29.39% 27.97% 27.00% 26.05% 25.12%
MANUFACTURING OVERHEAD
Water Expense 5.2 1.12% 1.12% 1.15% 1.18% 1.22%
Electric Expense 5.2 0.42% 0.40% 0.39% 0.38% 1.90%
Production Supplies 5.2 0.63% 0.63% 0.65% 0.67% 0.69%
Dep'n Expense-Production Furniture & Fixtures 5.2 0.19% 0.18% 0.17% 0.17% 0.16%
Dep'n Expense-Production Equipment 5.2 1.27% 1.21% 1.17% 1.13% 1.09%
Total Manufacturing Overhead 4.96% 3.54% 3.53% 3.53% 5.06%
TOTAL MANUFACTURING COSTS 100.29% 98.69% 98.62% 98.56% 100.03%
Add:Work in Process, Beg. 5.2
Total Cost of Goods 5.2 100.29% 98.69% 98.62% 98.56% 100.03%
Less:Work in Process, End
Cost of Goods Manufactured 5.2 100.29% 98.69% 98.62% 98.56% 100.03%
Add:Finished Goods, Beg. 5.2 0.00% 0.28% 0.29% 0.31% 0.33%
Cost of Goods Available for Sale 5.2 100.29% 98.96% 98.92% 98.87% 100.37%
Less:Finished Goods, End 5.2 0.29% 0.30% 0.32% 0.34% 0.37%
COST OF GOODS SOLD 100.00% 100.00% 100.00% 100.00% 100.00%
COMMON-SIZE STATEMENTS OF INCOME STATEMENT

A common size financial statement displays line items as a percentage of

one selected or common figure. Creating common size financial statements makes
it easier to analyze a company over time and compare it with its peers. Using
common size financial statements helps you spot trends that a raw financial
statement may not uncover.
The table below shows the projections of the common-size statements of
income statement of Banana Milk for the year 2023 to 2027.
5.10 COMMON SIZE STATEMENTS OF INCOME
PROJECTIONS

Banana Milk
Common Size Statements of Income Projections
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

Sales 5.3 100.00% 100.00% 100.00% 100.00% 100.00%
Less Cost of Sold 5.3 44.93% 42.70% 40.12% 37.72% 35.47%
Gross Profit 55.07% 57.30% 59.88% 62.28% 64.53%
Less Operating Expenses:
Regulatory Fees 5.3 0.20% 0.13% 0.12% 0.11% 0.10%
Water Expense 5.3 0.17% 0.16% 0.15% 0.15% 0.14%
Electricity Expense 5.3 0.42% 0.40% 0.39% 0.38% 0.36%
Rent Expense 5.3 4.69% 4.24% 3.85% 3.49% 3.16%
Interest Expense 5.3 0.06 0.05 0.05 0.04 0.04
Office Supplies Expense 5.3 0.00 0.00 0.00 0.00 0.00
SSS Contributions Expense 5.3 0.01 0.01 0.01 0.01 0.01
HDMF Contributions Expense 5.3 0.13% 0.12% 0.11% 0.10% 0.09%
PHIC Contributions Expense 5.3 0.24% 0.22% 0.20% 0.18% 0.16%
Depreciation Expense:
Building 5.3 0.74% 0.67% 0.60% 0.55% 0.50%
Office Furniture and Fixtures 5.3 0.11% 0.10% 0.09% 0.08% 0.08%
Office Equipment 5.3 0.06% 0.06% 0.05% 0.05% 0.04%
Operating Expenses 14.27% 12.89% 11.74% 10.70% 9.75%
Operating Income before Tax 40.80% 44.41% 48.14% 51.59% 54.78%
Less: Income Tax 5.3 1.93% 3.08% 4.36% 5.54% 6.62%
NET INCOME 38.87% 41.33% 43.78% 46.05% 54.78%
COMMON-SIZE STATEMENTS OF CHANGES IN EQUITY
Common-Size statements of changes in owner’s equity is essentially the
owner’s rights to the assets of the business. It’s what’s left over for the owner after
you’ve subtracted all the liabilities from the assets.
The table below shows the projections of the common-size statements of
changes in equity of Banana Milk for the year 2023 to 2027.
TABLE 5.10 COMMON SIZE STATEMENTS OF INCOME PROJECTIO

Banana Milk
Common Size Statements of Changes in Equity
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

Capital Beginning 5.4 0.00% 63.50% 70.26% 74.48% 77.49%
Add: Net Income 5.4 51.72% 37.93% 30.74% 26.27% 23.09%
Initial Investment 5.4 50.53%
TOTAL 102.25% 101.43% 101.00% 100.75% 100.58%
Less: Personal Drawings 5.4 2.25% 1.43% 1.00% 0.75% 0.58%
Capital End 100.00% 100.00% 100.00% 100.00% 100.00%

COMMON-SIZE STATEMENT OF CASH FLOWS PROJECTIONS

 Similar to an income statement analysis, many items in the cash flow
statement can be stated as a percent of total sales. The table below shows the
projections of the common-size statements of income statement of Banana Milk for
the year 2023 to 2027.
TABLE 5.12 STATEMENT OF CASH FLOWS PROJECTIONS

Banana Milk
Statement of Cash Flows Projections
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

Cash Flows from Operating Activities
Net Income 5.5 33.88% 31.49% 29.43% 27.57% 25.92%
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation Expenses
Income Tax 5.5 0.00% -1.24% -1.71% -2.11% -2.38%
Depreciation Expense
Building Renovation 5.5 0.61% 0.47% 0.37% 0.29% 0.23%
Office Furniture and Fixtures 5.5 0.09% 0.07% 0.06% 0.05% 0.04%
Office Equipment 5.5 0.05% 0.04% 0.03% 0.03% 0.02%
Production Furniture and Fixtures 5.5 0.07% 0.05% 0.04% 0.03% 0.03%
Production Equipment 5.5 0.48% 0.37% 0.29% 0.23% 0.18%
Increase in Accounts Receivable 5.5 -8.30% -0.68% -0.57% -0.50% -0.44%
Increase in Raw Materials Inventory 5.5 -0.11% -0.01% -0.01% -0.01% -0.01%
Increase in Finished Goods Inventory 5.5 -0.50% -0.02% -0.02% -0.01% -0.01%
Increase in Accounts Payable 5.5 1.87% 0.07% 0.05% 0.04% 0.04%
Increase in Rent Payable 5.5 3.89% 0.00% 0.00% 0.00% 0.00%
Increase in SSS Contributions Payable 5.5 0.96% 0.00% 0.00% 0.00% 0.00%
Increase in HDMF Contributions Payable 5.5 0.11% 0.00% 0.00% 0.00% 0.00%
Increase in PHIC Contributions Payable 5.5 0.20% 0.00% 0.00% 0.00% 0.00%
Net cash provided by (used in)operating activities 33.30% 30.63% 27.96% 25.60% 23.62%
Cash Flows from Investing Activities
Acquisitions of:
Building 5.5 -3.05% 0.00% 0.00% 0.00% 0.00%
Office Furniture and Fixtures 5.5 -0.47% 0.00% 0.00% 0.00% 0.00%
Office Equipment 5.5 -0.27% 0.00% 0.00% 0.00% 0.00%
Production Furniture and Fixtures 5.5 -0.35% 0.00% 0.00% 0.00% 0.00%
Production Equipment -2.38% 0.00% 0.00% 0.00% 0.00%
Net cash provided by (used in) investing activities -6.53% 0.00% 0.00% 0.00% 0.00%
Cash Flows from Finacing Activities
Cash received as investments by owners 5.5 41.71% 0.00% 0.00% 200.00% 300.00%
Cash received from borrowings 5.5 41.71%
Loan Payments 5.5 -8.34% -6.44% -5.04% -3.99% -3.21%
Owner's personal drawings 5.5 -1.85% -1.43% -1.12% -0.89% -0.71%
Net cash provided by (used in) financing activities 73.22% -7.88% -6.16% -4.88% -3.92%
Net increase/(decrease) in cash 100.00% 22.75% 21.81% 20.72% 19.70%
Cash Balance at the Beginning of the Period 5.5 0.00% 77.25% 78.19% 79.28% 80.30%
Cash Balance at the End of the Period 100.00% 100.00% 100.00% 100.00% 100.00%
 COMMON SIZE STATEMENTS OF FINANCIAL POSITION PROJECTIONS

Common-size statements of Financial position is the current balances

of the recorded assets, liabilities, and equity of an organization. This information is
recorded in the balance which is one of the financial statements. The financial
position of an organization is stated in the balance sheet as of the date noted in the
header of the report.
The table below shows the projections of the common-size statements of
financial position of Banana Milk for the year 2023 to 2027.

Banana Milk
Statements of Financial Position Projections
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

ASSETS
Current Assets
Cash on Hand 5.6 87.62% 90.40% 92.50% 94.06% 95.21%
Accounts Receivable 5.6 7.28% 6.41% 5.66% 5.03% 4.50%
Raw Materials Inventory 5.6 0.44% 0.37% 0.31% 0.26% 0.22%
Total Current Assets 95.33% 97.18% 98.47% 99.35% 99.94%
Non Current Assets
Building Renovation 5.6 2.14% 1.28% 0.68% 0.28% 0.00%
Office Furniture and Fixtures 5.6 0.33% 0.20% 0.11% 0.04% 0.00%
Office Equipment 5.6 0.19% 0.11% 0.06% 0.02% 0.00%
Production Furniture and Fixtures 5.6 0.25% 0.15% 0.08% 0.03% 0.00%
Production Equipment 5.6 1.67% 1.00% 0.53% 0.21% 0.00%
Total Non Current Assets 4.57% 2.73% 1.46% 0.59% 0.00%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00% 100.00%

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Rent Payable 5.6 3.41% 2.72% 2.18% 1.75% 1.43%
Loans Payable 5.6 7.31% 5.83% 4.66% 3.76% 0.00%
Income Tax Payable 5.6 1.41% 1.97% 2.47% 2.79% 2.98%
SSS Contributions Payable 5.6 0.84% 0.67% 0.54% 0.43% 0.35%
HDMF Contributions Payable 5.6 0.10% 0.08% 0.06% 0.05% 0.04%
PHIC Contributions Payable 5.6 0.18% 0.14% 0.11% 0.09% 0.07%
Accounts Payable 5.6 1.63% 1.37% 1.13% 0.95% 0.80%
Total Current Liabilities 14.88% 12.78% 11.15% 9.82% 5.68%
Non Current Liabilities
Loans Payable - Long Term Portion 5.6 21.93% 11.65% 4.66% 0.00% 0.00%
Total Non Current Liabilities 21.93% 11.65% 4.66% 0.00% 0.00%
TOTAL LIABILITIES 36.80% 24.43% 15.81% 9.82% 5.68%
Owner's Equity 5.6 63.20% 75.57% 84.19% 90.18% 94.32%
TOTAL LIABILITIES AND OWNER'S EQUITY 100.00% 100.00% 100.00% 100.00% 100.00%
 Banana Milk
Income Tax Computation
For the Years Ended December 31, 2023 through 2027

Table 2023 2024 2025 2026 2027

Taxable Income 5.3 365,520.72 439,863.99 525,691.10 621,117.32 727,167.47
On 250,000.00 - 400,000.00 22,500.00 400,000.00 22,500.00 400,000.00 22,500.00 400,000.00 22,500.00
On excess 115,520.72 17,328.11 39,863.99 7,972.80 125,691.10 25,138.22 221,117.32 44,223.46 327,167.47 65,433.49
Tax Payable 17,328.11 30,472.80 47,638.22 66,723.46 87,933.49
CHAPTER 6
SOCIO-ECONOMIC FEASIBILITY
The socioeconomic environment is one of the most important elements
influencing enterprises. It has the most direct and immediate impact on
entrepreneurship. Measuring socio-economic impact can help companies understand
the needs, aspirations, resources, and incentives of their customers enabling them to
develop winning new products and services and improve existing offerings.
REGULATION/ENVIRONMENTAL ISSUE
Environmental regulation is necessary. It can prevent the worst excesses, and
the existence of regulation and enforcement is itself an important deterrent.
Environmental regulation has resulted in environmental improvements, but it sometimes
does impose what could be perceived as excessive costs on businesses. The
proponents obtain the appropriate regulatory regulations for the business's legalization.
As to environmental concerns, the proposed business is environmental-friendly since it
uses organic raw materials which causes no harm to our nature. There are no processes
that will take against the welfare of the society.
CONTRIBUTION TO THE PHILIPPINE ECONOMY
The Banana Milk business’ contribution to the Philippine economy is employment
as it provides job opportunities to the people. It also contributes to the development of
the country and the local community through its taxes.