“DFJ’s Hire-A-Yacht”

Presented to Ms. DIANE P. AMIT

Faculty, Bachelor of Science in Business Administration Major in Financial Management
Kapalong College of Agriculture, Sciences and Technology
Maniki, Kapalong, Davao del Norte

In partial fulfillment of the requirements for the course BA107 Basic Finance

Submitted by:
Fhanira D. Fuentes
Danah Jane M. Garcia
Jeric A. Laya
Jasper Kent D. Alcazar
LadyJane Namoc
Tessie Molina
Jay A. Llanto

GROUP 1
BSBA FM2C
 Start – up Cost and Capitalization

Start-Up Expenses

Renovation Expense P31,950.00

Rent Expense 30,000.00

Office Supplies 4,000.00

Transportation and Equipment 2,661,400.00

Furniture and Fixture 14,300.00

Utilities Expense 10,500.00

Promotional Expense 11,000.00

Permits and Licenses 8,500.00

Total 2,771,650.00

Reserve Fund 28,350.00

Start-up Capital 2,800,000.00

Important Assumptions

1. Revenue is assumed to increase up to 5% annually.

2. Repairs and Maintenance will increase by 3% annually.

3. The Rent Expense will be constant for 5 years, since the business will have a

Lease Contract for 5 years.

4. Office Supplies will have an increase of 2% yearly.

5. Computing depreciation expense is based on the amount of asset acquisition

and estimated life.

6. The business allocates 2% increase in utilities expense yearly due to the

fluctuation of utility price.

7. Salaries and Wages are computed to have an increase of 1% annually.

8. 25% will be assumed to be the increase of Permits and Licenses.

9. Promotional Expense will only decrease in Year 3 by 2%, because it is assumed

that customer loyalty is build.

10. Personal Drawing is only allowed up to 40% of the business’ net income, due to

the manager is the owner of the business and has no salary receive.

Projected Five-Year Statement of Financial Position

Projected Five-Year Income Statement

Projected Five-Year Statement of Changes in Owner’s Equity

Projected Five-Year Cash Flow Statement

Financial Ratio