VII.

START-UP EXPENSES AND CAPITALIZATION

1. START-UP EXPENSES

TABLE 7.1. LEGAL REQUIREMENTS

Amount
Permits
Cedula ₱20.00
Barangay Clearance ₱20.00
Mayors Permit ₱1,200.00
DTI ₱500.00
BIR ₱500.00
Total ₱2,240.00

Table 7.1 shows the expenditures for the application of the legal requirements needed in
the operations of the business. Gangnam Mobile Disco will incur a total of ₱5,690.00 cost.

TABLE 7.2 RENOVATION EXPENSE

Renovation Quantity Unit Cost Total Cost
Tubular 1 ₱480 ₱480
Paint 2 ₱100 ₱200
Stainless Steel Sheet 1 ₱520 ₱520
Labor 1 ₱500 ₱500
Total ₱1,700.00 ₱1,700.00

Table 7.2 shows the cost of renovation for Yucky-Yucky store, amounting to ₱1,700.00.
 TABLE 7.3 EQUIPMENT EXPENSE
Estimated Depreciation
Equipments Quantity Unit Cost Total Cost
useful life expense
Gas Stove 1 ₱2,000.00 ₱2,000.00 4years ₱500.00
Gasoline
1 ₱1,200.00 ₱1,200 10years ₱120.00
Tank
Total ₱3,200 ₱620

Table 7.3 shows the cost of equipment needed for the business operations with the amount of
₱3,200. The depreciation expense for the equipment is ₱620. To get the depreciation expense the
formula was divide each equipment total cost to estimated useful life.

TABLE 7.4. FURNITURES AND FIXTURES EXPENSE

Furnitures Estimated Depreciation
Quantity Unit Cost Total Cost
and Fixtures useful life expense

Chairs 4 ₱150.00 ₱150.00 4years ₱37.50

Table 1 ₱300.00 ₱300.00 4years ₱75.00

Total ₱450.00 ₱112.50

Table 7.4 shows the cost of the furniture and fixtures needed for Yuck-Yucky business
amounting to ₱450.00 The depreciation expense for all the furniture and fixtures needed is
₱112.50. To get the depreciation expense of each furniture and fixture, divide the total cost of
each furniture and fixture by its estimated useful life.
 TABLE 7.5. OFFICE SUPPLIES EXPENSE
Required
Unit Cost for
Item/s Quantity for 1 Total cost for 1 year usage
year usage
year
Calculator 1 ₱50.00 ₱50.00
Scissors 2 ₱20.00 ₱40.00
Ballpen 3 ₱5.00 ₱15.00
Note Book 1 ₱50.00 ₱50.00
knife 2 ₱50.00 ₱100.00
Tongs 2 ₱50.00 ₱100.00
Stainless steel
2 ₱40.00 ₱80.00
ladle
Chopping
2 ₱80.00 ₱80.00
board
Squeeze bottle 3 ₱30.00 ₱90.00
Takoyaki and
2 ₱300.00 ₱600.00
Wok Pan
Whisk 2 ₱35.00 ₱75.00
Mixing bowl 2 ₱50.00 ₱100.00
Total ₱1,380.00

Table 7.5 shows the cost of office supplies needed for Yucky-Yucky business, The business will
need one (1) calculator, two (2) scissors, three (3) ballpens and one (1) note book, four (4) knife,
two (2) tongs, two (2) stainless steel ladle, two (2) chopping board, three (3) squeeze bottle one
(1) takoyaki and wok pan, two (2) whisk and two (2) mixing bowl for the operation of the
business.
 TABLE 7.6 MARKETING EXPENSE FOR 1 YEAR
Items Quantity Unit Cost Total Cost
Tarpaulin 3 ₱150.00 ₱450.00
Free taste 50 ₱20 ₱1,000.00
Packaging 2,000 ₱8 ₱16,000.00
Product Development ₱1,000.00
Total ₱18,450.00

Table 7.6 the marketing expense of the Yucky-Yucky business is ₱18,450.00 for
Tarpaulin, Free Tasting and Packaging cost and Product Development.

TABLE 7.7. MISCELLANEOUS EXPENSE

Items Quantity Unit Cost Total Cost
Dustpan 1 ₱35.00 ₱35.00
Broom 1 ₱100.00 ₱100.00
Trash can 2 ₱70.00 ₱140.00
Total ₱275.00

Table7.7 miscellaneous expense of Yucky-Yucky is amounting to ₱275.00, for one (1)

dustpan, one (1) broom and two (2) trash can, to maintain cleanliness of the store

TABLE 7.8. RENT EXPENSE

MONTHLY ANNUALLY
₱780.00 ₱9,360.00
 Table 7.8 shows that Yucky-Yucky need to pay ₱780.00 a month for rental fee or a total
of ₱9,360.00 in one year of rent expense.

TABLE 7.9 UTILITIES EXPENSE

Utilities expense Monthly Annually
Gas bill ₱500.00 ₱6,000.00
Water bill ₱100.00 ₱1,200.00
Total ₱600.00 ₱7,200.00

Table 7.9 shows the monthly utilities expense of Yucky-Yucky was amounting to
₱600.00 and for the one year utilities expense total is ₱7,200.00.
.

TABLE 7.10. TRANSPORTATION EXPENSE

No. of Demand in Takoyaki Shipping fee cost in every
Total cost in 1 year
and Yakisoba for 1 yr transaction
48 50 ₱2,400.00
Total ₱2,400.00

Table 7.10 shows that in every transaction for delivery of Yucky-Yucky’s stocks cost
₱50 per transaction. Yucky-Yucky ingredients ordered online, 48 times in a year. The total of all
transaction was ₱2,400 for a whole year.

Table 7.12: Cost of Goods Sold (TAKOYAKI)

Three Year 1 Year 2 Year 3
Months
Total Cost of Goods Manufactured 28,425 113,70 119,385 125,354
0
Finished Goods Inventory, Beginning 28,425 113,70 164,001 147,662
0
Cost of Goods Available for Sale 28,425 113,70 164,001 147,662
0
Finished Goods Inventory, End 11,154 22,308 33,462
Cost of Goods Sold 17,271 186,309 181,124

Table 7. Shows that the Cost of Goods Sold of Takoyaki, to get the total of COGS for 3 months
the entrepreneurs get the total no. of demand in a year, divided by 12 and multiply the answer in
3 to get the total demand in 3 months with the total of 1,137 after that get the total cost of
ingredients divided to total product produced with the total of 25. So 1,137 multiply by 25 is
equal to 28,425 for (Total Cost of Goods Manufactured, Finished Goods Inventory, Beginning
and Cost of Goods Available for Sale). And for the Finished Goods Inventory, the remaining
ingredients multiply to price per grams of each ingredients and multiply to 78 as working days
for 3 months with the total of 11,154. Cost of Goods Available for Sale (28,425) minus Finished
Goods Inventory, End (11,154) The total of Cost of Goods Sold for 3 months is 17,271.

yung mga natirang ingredients multiply sa price per grams of each ingredients, and multiply the
total sa 78 (working for 3 moths) with the total of

Table 7.12: Cost of Goods Sold (YAKISOBA)

Three Year 1 Year 2 Year 3

Months
Total Cost of Goods Manufactured 38,610 234,60 246,330 258,646
 0
Finished Goods Inventory, Beginning 38,610 234,60 325,580 296,296
0
Cost of Goods Available for Sale 38,610 234,60 325,580 296,296
0
Finished Goods Inventory, End 39,625 37,650 18,825
Cost of Goods Sold 38,610 194,97 287,930 277,471
5

Table 7.12 shows the Cost of Goods Sold of Yucky-Yucky. The yakisoba of Yucky-Yucky has
9,384 total demand in a year, and the total cost of unit is 25.

Kaya nakuha ang total cost of goods available for sale dahil idinidive ang total demand in ayear
sa 12 at tinimes sa 3. At in bawas ang finished goods inventory kaya ang total ng cost good sold

A. Capital Requirement

Table 7.13 Capital Requirement for Three Months

Capital Requirement for first three months

COGS 50,000

Administrative Expense

Descriptive Title Expenses for first three months (₱)

Salaries expense 0

Licensing 561

Marketing 4,611

Office supplies expense 345

Operating Expense
Labor 0

Equipment 801

Furniture and Fixtures 111

Maintenance 0

Miscellaneous 69

Utilities 1,800

Rent 2340

Transportation expense 600

Renovation 426

Total 11,664

Table 7.14: Capital Requirements for Three Years

Capital Requirement for three years 2022 (₱) 2023 (₱) 2024 (₱)

COGS

Administrative Expense

Descriptive Title

Salaries expense

Licensing

Marketing

Office supplies

Operating Expense

Labor

Equipment

Furniture and Fixtures

Maintenance

Miscellaneous

Utilities

Rent

Transportation Expense
Renovation

Total

The breakdown of capital requirement per year is reflected in Appendix H.

Table 7.15: Source of Financing for Three Months

Source of Financing for First three months

LIABILITIES:

Current Liabilities

Accounts Payable ₱

Loans Payable

Non-current Liabilities

OWNER'S EQUITY

Santos, Capital ₱ 10,000

Cruz, Capital 10,000

Valdez, Capital 10,000

TOTAL LIABILITIES AND OWNER’S CAPITAL ₱ 30,000

Table 7.16: Source of Financing for Year 1

Source of Financing for Year 1

LIABILITIES:

Current Liabilities

Accounts Payable ₱

Loans Payable

Non-current Liabilities

OWNER'S EQUITY

Santos, Capital ₱

Cruz, Capital
Valdez, Capital

TOTAL LIABILITIES AND OWNER’S CAPITAL ₱