BUSINESS PLAN

General Information
Name of Proponent(s) MARIA HAIZELIN C. SORIANO
BLU’E ESSENTIAL : DISHWASHING LIQUID AND FABRIC
Name of Business
CONDITIONER
Nature of Business SOLE PROPRIETORSHIP
Date of presentation JANUARY 23,2023

Executive Summary
1. Brief Description of the Project/Business
A. Marketing Aspect
 Main product or service: DISHWASHING LIQUID & FABRIC CONDITIONER
 Selling price: Our selling Price range from 40 pesos to 80 pesos.
 Competitor’s price: Our competitor’s selling price range from 90 pesos to 150 pesos which is
very expensive.
 Main Customers: SCHOOLS, HOUSES, STORES/GROCERY/SUPERMARKETS,
RESTAURANT and EVERYBODY IN OUR TARGET MARKET LOCATION
 Target market share for Year 1: 0.7%

B. Production/Technical Aspect:

Proposed name of the business: The entrepreneurs decided to choose name “Blu’e Essential”
because it symbolizes security, trust, loyalty and responsibility. Blue conveys trust, honesty and
dependability, it helps to build customer loyalty. We will create a products that is likable,
trustworthy and clean. By producing dishwashing liquid and fabric conditioner that are beyond
producing quality.

Production process: The production process will be manage by the workers specifically the
machine operators and packaging operators who are in line in doing the job. They will used
machines and equipment in making the products.

Plant location of the proposed business: The proposed project site for the business is located
at Sta. Barbara, Iguig, Cagayan. The entrepreneurs consider these factors in choosing the
location like the availability of utilities such as water and electricity.

C. Organization and Management Aspect

 Business name: BLU’E ESSENTIAL
 Nature of business: SOLE-PROPRIETORSHIP
 Form of business: SOLE-PROPRIETORSHIP
 Name of owner(s): MARIA HAIZELIN C. SORIANO
 Location of business: STA. BARBARA, IGUIG, CAGAYAN
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 D. Financial Aspect:
 Total Project Cost (TPC): PHP 7,703,290
 Return on Investment (ROI) in Year 1: PHP421,160; Year 2: PHP 3,627,080; Year 3: PHP
4,187,080
 TPC to be covered by: Equity: 100%; Loan: N/A
 Debt-Equity Ratio: N/A
 Collateral for loans: N/A

2. Brief Profile of the Entrepreneur(s)

Qualification of the entrepreneur(s) for going into the business:
1. The entrepreneur must have the ability to manage money and raise money.
2. The entrepreneur must be productive.
3. The entrepreneur must have understanding of issues and challenges.
4. The entrepreneur must have the ability to focus on costumer’s needs.

3. Project’s Contribution to the Local/National Economy

The project will have the following contribution to the local/national economy (put a tick mark on the
appropriate blanks and describe)
____1. Employment generation:_________________________________________________
____2. Export potential: _______________________________________________________
____3. Imports substitution policy: To change the economic structure of our country by replacing
foreign goods with domestic goods which is to encourages production in our own country.
____4. Others (specify): _______________________________________________________

Marketing Plan
Description of the Product or Service
Blu'e Essential Dishwashing Liquid and Fabric Conditioner is an evolution of an
environmentally friendly entrepreneurship that uses marketing techniques to manufacture and
sell products to make a meaningful contribution to environmental protection. Blu'e Essential
exists to support the environment. We always ensure that our customers will never have a hard
time in using our product by formulating a high quality ingredients for better, milder, and budget
friendlier dish wash and detergent concentrate that they wouldn’t find in any market place and
never regret using.

The powerful surfactants in dishwashing liquid lift grease and dirt away from dishes and
keep it from re-attaching, giving you a thorough clean that other dishwashing liquids cannot
provide. This concentrated manual dish detergent has long lasting suds that clean a large array
of soils. This tough but gentle dish soap is designed to be mild and contains emollients to prevent
hands from becoming dry. It is the perfect ingredient for deep cleaning pots, pans, dishes and
utensils, removing stubborn grease and stains.

The product will be hygienically and carefully produce to guarantee it safety and it
harmless nature to the skin and other object it will be used on.

2
Comparison of the Product/Service with those of Competitors
In terms of quality and price, the differences between the present business product or service with
those of the competitors are:
1. Quality Products
2. Competitive Pricing
3. Packaging
4. Size
5. Texture
6. Thickness
7. Color
8. Fragrance

Location
The business will be located at Sta. Barbara, Iguig, Cagayan. It has enough space to utilize for
the various commercial activities.

The site for the production is readily accessible with light, water etc.,

Market Area
The project will cover the following geographical areas:
1. Tuguegarao City
2. Iguig
3. Amulung
4. Alcala
5. Baggao

Main Customers
Within the business chosen market area, it will sell its products to the following customers
1. SCHOOLS
2. HOUSES
3. STORES/GROCERY/SUPERMARKETS
4. RESTAURANT
5. EVERYBODY IN OUR TARGET MARKET LOCATION

Total Demand
In terms of number of units, the current demand for the business’ product or service is 169,026
(one hundred sixty nine twenty six thousands) in year 1.

Market Share
It is estimated that the business will capture 0.07% of the market share in year 1; 0.09% in year
2 and 0.11% in year 3.

Selling Price
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 The selling price of the business’ product or service is range from 40-80 pesos, while those of
the competitors are range from 80- 150 pesos.

The system used for determining my/our selling price is:

_____ Cost plus method
_____ “Competitor’s price minus” method
_____ Customer’s limit method
_____ Others (specify): ______________________________________________________

Sales Forecast
It is forecasted that the business will be able to sell the following number of products or service
Quantity and Unit
Name of Product
Year 1 Year 2 Year 3
Dishwashing Liquid
1. Wholesale Distributors 1 34,815 36,000 39,000
(Unit Sold)
Sales price @ unit 40 40 40
WSD1 1,392,600 1,440,000 1,560,000
TOTAL

2. Wholesale Distributors 2 34,815 36,000 39,000

(Unit Sold)
Sales price @ unit 40 40 40
WSD2 1,392,600 1,440,000 1,560,000
TOTAL

3. Wholesale Distributors 3 29766 31,000 33,000

(Unit Sold)
Sales price @ unit 40 40 40
WSD3 1,190,640 1,240,000 1,320,000
TOTAL

4. Individuals (Unit Sold) 69,630 71,000 73,000

Sales price @ unit 50 50 50
INDIV 3,481,500 3,550,000 3,650,000
TOTAL

Yearly Totals: All 7,457,340 7,670,000 8,090,000

Categories

Fabric Conditioner
1. Wholesale Distributors 1 11,500 13,500 16,000
(Unit Sold)
Sales price @ unit 60 60 60
WSD1 690,000 810,000 960,000

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 TOTAL

2. Wholesale Distributors 2 11,500 13,500 16,000

(Unit Sold)
Sales price @ unit 60 60 60
WSD2 690,000 810,000 960,000
TOTAL

3. Wholesale Distributors 3 6000 7000 10,000

(Unit Sold)
Sales price @ unit 60 60 60
WSD3 360,000 420,000 600,000
TOTAL

4. Individuals (Unit Sold) 13,000 15,000 17,000

Sales price @ unit 80
INDIV 1,040,000 1,200,000 1,360,000
TOTAL

Yearly Totals: All 2,780,000 3,240,000 3,880,000

Categories

DL and FB Yearly Totals: 10,237,340 10,910,000 11,970,000

Note: If the business is able realize profits within months, you may change year to month

Promotional Measures
To achieve the business’ sales forecast and targeted market share, the following promotional
measures are planned:
1. MEDIA. It is easiest way to access and deal with others. Like for example, in social networking sites
such as Facebook and Messenger. By creating a link it can easily for us to identify who are
interested with our products and we can also easily share the products we are selling to consumers.
2. WORDS OF MOUTH. It is one way of getting the attention of other people. We can explain the
purpose and advantages of our product compare to others.

Marketing Strategy
To achieve the business’ sales forecast and targeted market share, the following marketing
strategies need to be done:
1. PUBLIC RELATIONS STRATEGY
2. SOCIAL MEDIA MARKETING STRATEGY

Marketing Budget

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 To promote and distribute the business’ product or service, the following marketing budget will be
required (include basic assumptions and computations)

Budget
Item/Particular*
Period 1 Period 2 Period 3
PUBLIC RELATIONS STRATEGY
SOCIAL MEDIA MARKETING STRATEGY
Assumptions:
 Public relation strategies helps our business to create, organize, and measure the
effectiveness. It may cover a full year of our campaigns.
 Social media marketing strategy is a powerful way for our business to reach our prospects
and costumers.

Period could be monthly, quarterly, yearly

Production/Technical Plan

Production/Technical Process
The steps in the production process or technical aspect of the business are the following:

DISHWASHING LIQUID
1. Fill the drum container with water. Very slowly pour the surfactant into the pail little by little while
mixing slowly with the ladle. Avoid globs of the surfactant to form in the water.
2. Mix until there is no visible surfactants in the water and it is fully dissolved.
3. Put in your foam booster followed by the degreaser while still mixing the mixture.
4. Put in your other remaining ingredients one by one except the thickener.
5. When all ingredients are fully dissolved, start putting in the salt little by little while mixing. Do this
until you get the desired consistency of your dishwashing liquid.
6. Set aside for 24 hrs to let the bubbles disappear.
7. Put into containers and start using. Enjoy!
8. Important Note: When putting the thickener, make sure you stop when you already achieved the
thickness of the liquid that you want. Otherwise, if you put too much and reach the limit, the
mixture will go back to being runny.

FABRIC CONDITIONER
1. Fill the drum container with water. Very slowly pour the fabcon gel into the pail little by little while
mixing slowly with the ladle.
2. Avoid globs to form in the water.
3. Mix until there is no visible gel in the water and it is fully dissolved.
4. Mix the scent with the fixative well. Then put it in the mixture.
5. Put in your other remaining ingredients one by one.
6. Mix for at least ten minutes.
7. When all ingredients are fully mixed set aside for 24 hrs.

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 8. Put into containers and start using.
9. Important Note: Keep the product away from excessive heat and sunlight as it will fade the color
and degrade the scent of your product.

Fixed Capital/Assets and Depreciation Schedule

The building, machinery, equipment and other fixed assets needed by the business and their
cost are the following;
Fixed Assets Purchase Price Quanttity Life of Asset Depreciation
Cost
Building 500,000 10 years PHP 50,000
Machinery:
 Agitator Mixer 80,000 5 10 years PHP 8,000
 Automatic Filler 400,000 6 sets 10 years PHP 40,000
Liquid Soap
/Detergent Filling
Machine Machine
Production Line
 Liquid Soap Mixer 274,000 4 sets 10 years PHP 27,400
Machine
Equipment
 IBC Square Tank 10,000 6 5 years PHP 2,000
 Blue Plastic 10,200 5 5 years PHP 2,040
Container
 Computer and 17,000 1 5 years PHP 3,400
equipment
Furniture and Fixture
 Tables 4500 3 5 years PHP 900
 Chairs 4500 15 5 years PHP 900
 Cabinets 2000 2 5 years PHP 400
Vehicle :
 Cargo Delivery 1,500,000 2 10 years PHP 150,000
Truck
 Multi cab 100,000 1 10 years PHP 10,000
Others (specify)

Total Depreciation Cost PHP

295,040/Year
Does the business need to buy land? Yes ____ No _______
If yes, the land size is _________________ sq m and the price is _____________________
If no, the business needs to rent land at the size of _____________________ sq m and at the price of
_________________________________
*Note: The land was owned by the entrepreneur and the improvement that she need to build the building
was PHP 500,000.

Maintenance and Repairs

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 To maintain the fixed assets, the following steps will be undertaken:
1. Installing condition-monitoring sensors and devices
2. Installing new lighting and air conditioning systems
3. Upgrading existing assets and systems
4. Installing new assets and systems
5. Performing safety inspections
6. Replacing asset components
7. Replacing broken or worn-out parts with comparable parts
8. Cleaning building structures and systems
9. Routine inspections and checks

Sources of Equipment
The fixed assets will be obtained on the following terms:

Fixed Assets Planned Date of Source Remarks

Acquisition
Building 10 years Santa, Barbara, Iguig, Owned
Cagayan
Machinery:
 Agitator Mixer 5 years COMPANY: Automatic Agitator:
Wuxi Ewater Water New purchase
Treatment Co., Ltd.
Shanghai, Ningbo
 Automatic Filler 10 years COMPANY: Suitable for various
Liquid Soap Dongguan Huanlian liquids with good
/Detergent Automation Equipment fluidity; Fast, efficient
Filling Machine Co., Ltd and stable: New
Machine purchase
Production
Line
 Liquid Soap 10 years COMPANY: Multifunctional
Mixer Machine Shanghai Homogenizing Mixer:
New purchase
Equipment
 IBC Square 1 month WHOLESALER: Industrial-grade
Tank Taguig, Metro Manila containers engineered
Philippines for storage of liquid
soap
Second hand products
 Blue Plastic 1 month WHOLESALER: A blow molded, high
Container Santa Rosa, Laguna molecular weight, high
City density polyethylene
container.
Second hand products
 Computer and 1 month New Purchase
equipment
Furniture and Fixture
 Tables 1 month Valenzuela City, Good Condition
Manila, Philippines
 Chairs 1 month Marilao, Bulacan Slightly angled seat;

8
 Synthetic Materials
 Cabinets 1 month Valenzuela City, Authentic Materials
Manila, Philippines
Vehicles
 Cargo Delivery 10 years Manila, Philippines New Purchase
Truck
Utilized to carry heavy
loads of commodities,
housewares, and
parcels.

Efficiency in logistics
courier services
 Multicab 5 years Marikina Second hand Vehicles
Others (specify)
 Bottles 14 days China N/A
 Packaging 14 days Philippines N/A
Cartons
 Dishwashing 7 days Philippines N/A
Liquid/Fabric
Conditioner
Ingredients

Planned Capacity
The planned capacity for the machines are from 5-10 years.

Future Capacity
The plans for using spare/reserve capacity are:
1. Invest new equipment’s and machines for the large production of the business to be able to improve
the production of the business.
2. Hire more workers for the mass production of the business.
3. Increase the unit of production for greater availability of the products.

Terms and Conditions of Purchase of Equipment

The terms and condition for the purchase of the equipment are the following:
When to be Paid How to pay for Machines and Equipment
Upon Receipt of the Payment can be made through cash or credit card
Equipment
MACHINES(Advance Payment can be made through bank transfers
payment)

Factory Location and Layout

The factory will be located at STA.BARBARA, IGUIG, CAGAYAN.
The plant layout will be arranged like this
PLANT LAYOUT
Production Machine Production Machine Filling Machine Warehouse

Executive office File room Break Room Conference

9
Sketch

Raw Materials or Supplies

The raw materials/supplies needed by the business and their costs are as follows:
Type of Raw Cost Where Available When Available
Materials or Supplies
Needed
Agitator Mixer 80,000 Wuxi Ewater Water 7 days
Treatment Co., Ltd.
Shanghai, Ningbo
Automatic Filler 400,000 Dongguan Huanlian 1 month
Liquid Soap Automation Equipment
/Detergent Filling Co., Ltd
Machine Machine
Production Line
Liquid Soap Mixer 274,000 Shanghai 1 month
Machine
IBC Square Tank 10,000 Taguig, Metro Manila 14 days
Philippines
Blue Plastic 10,200 Santa Rosa, Laguna 14 days
Container City
Bottles 845,130 Quezon City, Metro 14 days
Manila Philippines
Packaging Cartons 100,000 Philippines 14 days
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 Dishwashing 200,000 Philippines 7 days
Liquid/Fabric
Conditioner
Ingredients
Total Cost 1,919,130

Labor
Direct Labor
The number of direct labor needed and their required skills are as follows:
Position Title Job Type of Skill Education/Training Salary/
Description Required wage
Machine Operators (2) Responsible Knowledge of High school diploma PHP
for monitoring, production 15,600
maintaining procedures. 1 years+ of
and operating experience and
equipment. Ability to read training of machine
blueprints, operator
Responsible schematics and
for cleaning manuals.
and quality
checking Attention to
machinery detail.
Packaging Operators (3) Responsible Knowledge of At least High School PHP
for taking the safety standards Diploma 15,000 X
finished and operational 5= PHP
product on the policies 75,000
manufacturing
process. Attention to
detail
Ensuring that
packaged in Inventory
line and management
making it
ready for sale Teamwork skills
and
distribution.
Distribution Track Drivers Assists in Sound At least High School PHP
(5) loading and Knowledge of Diploma 14,952 x
unloading road safety 5= PHP
soaps and
regulations Driver’s License 74,760
detergents
meant for
distribution. Working
knowledge of
Maintain a local roads and
logbook of routes

11
their driving
activities to
ensure
compliance
with federal
regulations
governing the
rest and work
periods for
operators.

Keeps a
record of
vehicle
inspections
and make sure
the truck is
equipped with
safety
equipment

Local-delivery
drivers may be
required to sell
products or
services to
stores and
businesses on
their route,
obtain
signatures
from recipients
and collect
cash.

Transports
finished goods
and raw
materials over
land to and
from
manufacturing
plants or retail
and
distribution
centers

Inspects
vehicles for
mechanical
items and
safety issues
and perform
12
 preventative
maintenance

Complies with
truck driving
rules and
regulations
(size, weight,
route
designations,
parking, break
periods etc.)
as well as with
company
policies and
procedures

Collects and
verifies
delivery
instructions

Indirect Labor
The number of indirect labor needed and their required skills are as follows:
Position Title Job Type of Skill Education/Training Salary/
Description Required Wage
CEO Increases Teamwork N/A 20,000
management’s
effectiveness by Management
recruiting, Skills
selecting,
orienting,
training,
coaching,
counseling, and
disciplining
managers;
communicating
values,
strategies, and
objectives;
assigning
accountabilities;
planning,
monitoring, and
appraising job
results;
developing
incentives;
developing a
climate for
offering

13
 information and
opinions;
providing
educational
opportunities.

Responsible for
providing
direction for the
business

Responsible for
signing checks
and documents
on behalf of the
company

Evaluates the
success of the
organization
Production Manager A professional Excellent N/A 10,000
who oversees project
the production management
process and skills.
coordinates all
activities to Ability to coach
ensure enough and mentor
resources on employees on
hand. They can one on one
plan workers' basis as well as
schedules, in a group.
estimate costs
and prepare
budgets to
ensure workflow
meets required
deadlines.

Labor Availability
Workers are available throughout the year? Yes____ No ____
If no, the effects of this on the production are the following;
1. Reduced production of products and profitability of the business.
2. The business will not be able to take larger or more productions without additional labor.

To address this problem, the following steps will be undertaken:

1. Perk up employee benefits

2. Improve work environment to reduce churn.
3. Recognize and reward employees for positive outcome of the business.
4. Start an employee referral program.
5. Outsource or automate what you can.

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Labor Productivity
To assure the productivity of the workers/staff, the following motivational steps are planned:

1. Make my business a pleasant place to be.

2. Give them room to grow.
3. Create a friendly work environment.
4. Acknowledge employees’ achievement.
5. Positive communication is the key.
6. Have a meaningful and worthwhile goal.
7. Rewarding employees.
8. Be a leader worth following.
9. Be a respectful, honest and supportive.
10. Share positive feedback.

Factory Overhead Expenses

The business is expected to incur the following overhead costs:
Overhead Cost
Electricity/energy PHP 20,000/Month
Water PHP 10,000/Month
Repair and Maintenance PHP 1,000/Month
Office expenses PHP 1,000/Month
Delivery/Transportation PHP 15,000/Month
Total Overhead Cost PHP 47,500/Month

Production Cost
The production cost per unit of the product or service is 29.04.

The size of the factory/office space is 3,750 sq. ft.

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 Organization and Management
Form of Business
The name of the BLU’E ESSENTIAL
The form of the business is
____ Single proprietorship
____ Partnership
____ Corporation

The name(s) of the owner-entrepreneur(s) is/are:

1. MARIA HAIZELIN C.SORIANO

The location of the business is at STA. BARBARA, IGUIG, CAGAYAN.

Organizational Structure
The organogram of the business looks like this:

The corporate plantilla (organizational structure) of the business is as follows:

Name Position Title Job Description Education/ Training Salary
Required Range
MARIA CEO (Owner) Increases N/A PHP 20,000
HAIZELIN C. management’s
SORIANO effectiveness by
recruiting, selecting,
orienting, training,
coaching,
counseling, and
disciplining
managers;
communicating
values, strategies,
and objectives;
assigning
accountabilities;
planning, monitoring,
and appraising job
results; developing
incentives;
developing a climate
for offering
information and
opinions; providing
educational
opportunities.

Responsible for
providing direction for
the business

Responsible for
signing checks and
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 documents on behalf
of the company

Evaluates the
success of the
organization
MARIA Production A professional who Excellent project PHP 10,000
HAIZELIN C. Manager oversees the management skills.
SORIANO production process
and coordinates all Ability to coach and
activities to ensure mentor employees
enough resources on on one on one basis
hand. They can plan as well as in a group.
workers' schedules,
estimate costs and
prepare budgets to
ensure workflow
meets required
deadlines.
Machine Operators Responsible for High school diploma PHP 15,600
monitoring,
maintaining and1 years+ of
operating equipment. experience and
training of machine
Responsible for operator
cleaning and quality
checking machinery
Packaging Responsible for At least High School PHP 15,000
Operators taking the finished Diploma
product on the
manufacturing
process.

Ensuring that
packaged in line and
making it ready for
sale and distribution.
Distribution Truck Assists in loading At least high school PHP 14,952
Drivers and unloading soaps graduate
and detergents
meant for At least 2-3 years’
distribution. experience in
trucking industry
Maintain a logbook of
their driving activities Hardworking, willing
to ensure compliance to extend longer
with federal hours of duty.
regulations governing
the rest and work
periods for operators.

17
Keeps a record of
vehicle inspections
and make sure the
truck is equipped
with safety
equipment

Assists the transport

and logistics
manager in planning
their route according
to a delivery
schedule.

Local-delivery drivers
may be required to
sell products or
services to stores
and businesses on
their route, obtain
signatures from
recipients and collect
cash.

Transports finished
goods and raw
materials over land to
and from
manufacturing plants
or retail and
distribution centers

Inspects vehicles for

mechanical items
and safety issues
and perform
preventative
maintenance

Complies with truck

driving rules and
regulations (size,
weight, route
designations,
parking, break
periods etc.) as well
as with company
policies and
procedures

Collects and verifies

delivery instructions

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 Reports defects,
accidents or
violations

Business Experience and Qualifications of the Entrepreneur(s)

The owner-entrepreneur(s) of the business has/have the following qualifications and background
 Critical Thinking
 Attention to detail
 Strong communication skills
 Patience
 Ability to work to deadlines
 Ingenuity and creativity
 Strong oral and written comprehension and communication
 Conceptual

Pre-Operating Activities and Expenses

Pre-Operating Activities Time Expense
1 2 3 4 5 6 7 8 9 1 11 12
0
Business Registration 47,500 47,500
and other activities
Total Pre-Operating Expenses PHP
47,500

Office Equipment
The fixed assets required for the administrative office are the following:
Fixed Assets Purchase Price Life of Asset Depreciation
Computer and PHP 17,000 5 years PHP 3,400/year
Equipments
Tables PHP 4500 5 years PHP 900/year
Chairs PHP 4500 5 years PHP 900/year
Cabinets PHP 2000 5 years PHP 400/year

Administrative Expenses
The following administrative expenses will be incurred:
1. Business Registration- PHP 10,000
2. Office equipment and supplies- PHP 2,000

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 Financial Plan
TOTAL PROJECT COST
Particular Equity Loan Total
Fixed Assets
Land Owned 0 0
Building 500,000 0 500,000
Machine 774,200 0 774,200
Furniture and Fixtures 11,000 0 11,000
Vehicle 1,600,000 0 1,600,000

Working Capital
Direct labor 1,818,960 0 1,818,960
Direct materials 1,919,130 0 1,919,130
Cash Overhead Cost 522,500 0 522,500
Selling Expenses 500,000 0 500,000
Administrative Expenses 100,000 0 100,000

Pre-operating Expenses 47,500 0 47,500

TOTAL EXPENSE 7,703,290 0 7,703,290

Debt-Equity Ratio 100% 0%

Some notes:

AMORTIZATION SCHEDULE
Period Amortization Interest Principal Balance
Period 0 0 0 0 0
Period 1 0 0 0 0
Period 2 0 0 0 0
Period 3 0 0 0 0

20
PROFIT AND LOSS STATEMENT

21
 Particular Period 1 Period 2 Period 3
Sales 10,237,340 10,910,000 11,970,000
Less: Cost of Goods Sold
Direct labor 1,818,960 1,818,960 1,818,960
Direct materials 1,919,130 700,000 900,000
Overhead cost 522,500 522,500 522,500
Total: 4,260,590 3,041,460 3,241,460
Gross Profit 5,976,750 7,868,540 8,728,540

Less: Operating Expense

Selling expense 500,000 500,000 500,000
Administrative Expenses 100,000 100,000 150,000
Pre-operating expenses 47,500 0 0
Total: 647,500 600,000 650,000
Operating Profit 5,329,250 7,268,540 8,078,540

Less: Interest Expense

Profit before Tax

Less: Tax

Net Profit 5,329,250 7,268,540 8,078,540

Return on Investment (ROI) 421,160 3,627,080 4,187,080

BALANCE SHEET
Particulars Pre-Operating Period 1 Period 2 Period 3
ASSETS
Current Assets
Cash 1,000,000 7,650,880 5,571,910 7,785,910

Fixed Assets
Land (Net Book Value) 0 0 0 0
Building (Net Book Value) 500,000 100,000 100,000 100,000
Machine (Net Book Value) 754,000 0 274,000 400,000
Furniture & Fixtures (Net Book Value) 11,000 20,000 50,000 70,000
Vehicle (Net Book Value) 1,600,000 0 1,500,000 100,000

Other Assets 1,432,330 0 1,095,130 1,095,130

Pre-operating expenses 0 47,500 0 0

TOTAL ASSETS 5,297,330 7,818,380 8,591,040 9,551,040

LIABILITIES AND OWNER’S EQUITY

Current Liabilities
Current portion of the loan 0 0 0 0

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 BALANCE SHEET
Particulars Pre-Operating Period 1 Period 2 Period 3
Long Term Liabilities
Loan Balance 0 0 0 0

Owner’s Equity
Capital beginning 4,908,090 0 3,641,460 3,891,460
Retained earnings 1,271,910 0 1,930,450 3,894,450
Capital ending 6,180,000 0 5,571,910 7,785,910

TOTAL LIABILITIES AND OWNER’S 6,180,000 0 5,571,910 7,785,910

EQUITY

CASH FLOW STATEMENT

Particulars Pre- Period 1 Period 2 Period 3
Operating
Cash Inflow
Equity 6,180,000 0 5,571,910 7,785,910
Loan 0 0 0 0
Sales 0 10,237,340 10,910,000 11,970,000

Cash Outflow
Pre-operating Expenses 47,500 0 0 0
Purchase of fixed assets 2,219,130 0 0 0
Direct labor 0 1,818,960 1,818,960 1,818,960
Direct materials 200,000 100,000 700,000 900,000
Cash overhead cost 47,500 522,500 522,500 522,500
Selling expenses 50,000 500,000 500,000 500,000
Administrative expenses 12,000 100,000 100,000 100,000
Interest expense 0 0 0 0
Loan payment 0 0 0 0
Tax (10%) 0 0 0 0

Net Cash flow

Cash Beginning 8,000,000 0 5,338,460 4,184,090

Cash Ending 1,091,910 0 7,650,880 7,785,910

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