FARMCULTURE

SUPPLY
Proposed type of Business:
• Farmculture Supply is a General Partnership, which two or more persons agree to
share in all assets, profits, financial and legal liabilities of a business. Such partners
have unlimited liability which means their personal assets are liable to the partnership
obligation.

• We choose General Partnership because each partner has an equal right to

participate in the management of the business.
 Marketing Plan
• Farmculture supply distributes products directly to consumer. A product has a
good quality and contain nutrition for the animals and plants. It offers to the
consumer in a retail and wholesale distribution.
• The business gives discount for the start selling of products but later on or after
many days the price of products sold is an average price which is affordable for the
consumers.
• Farmculture supply gives flyers and put posters near in our location and other
places to inform them about our product. The business hired hardworking
employee, good looking, trustworthy and know how to deal with the customers and
perform good service for getting the attention of the customers.
7. Planned Capacity

The Farmculture Supply plan would be achievable in a period of time. By achieving its blueprints
or plan the business operation would be in a better condition and it’s primarily goals would be achieve
and the business would be success in a long run.

8. Future Capacity:

Farmculture supply open and expand its business in different places of Leyte. It also plans to
bring product all over in region 8. The aspiration and dream is to really make farmculture a leading
agribusiness in Luzon, Visayas, and Mindanao.
FINANCIAL PLAN
 Total Project Cost
Particular Total Cost
Fixed Assets
Machinery & Tools Php11, 990.00
Furniture &Fixtures 9,000.00
Vehicles 417,000.00
Land 100,000.00
Building 500,000.00
Total Fixed Cost Php1, 037,990.00
Pre-Operating Expenses
Training Php5, 000.00
Licence, Building Permit 25,000.00
Fuel Expenses 2,000.00
Electricity Expenses 500.00
Supply Expenses 300,000.00
Miscellaneous 2,000.00
Advertising & Promotions 5,000.00
Total Php339, 500.00

Total Project Cost Php1, 377,490.00

Financial Assumption
1. Salaries Expense will increase 5% annually.
2. Supplies Expense will increase 5% annually.
3. Repair and maintenance expense will increase 4% annually.
4. Advertising and promotional will increase 2% annually.
5. Utilities Expense
 Electricity expense 3% annually
 Fuel expense 5% annually
6. Miscellaneous Expense will increase 3% annually.
7. Depreciation Expense
 Vehicle will depreciate every 6 years in 3%
 Building will depreciate every 5 years in 5%
 F & F will depreciate every 5 years in 3%
8. Gross Sales will increase 15% annually.
 Projected Income Statement 5 years
Y1 Y2 Y3 Y4 Y5
Gross Sales 3,450,000 3,967,500 3,967,500 5,247,018.75 6,034,071.56
Less: Purchases 2,625,000 2,756,250 2,894,062.5 3,038,765.62 3,190,703.90
Fuel 25,200 26,460 27,783 29,172.15 30,630.76

Net Sales: 799,800 1,184,790 1,640,779.5 2,179,080.98 2,812,736.9

Operating Expenses:
Salaries 604,800 635,040 666,792 700,131.6 735,138.18
Advertising 5,100 5,202 5,306.04 5,412.16 5,520.40
Repair & 24,960 25,958.4 26,996.74 28,076.61 29,199.67
Maintenance
Utilities(electricity) 6,180 6,365.4 6,556.36 6,753.05 6,955.64
Depreciation:
Building 5,000 5,000 5,000 5,000 5,000
Vehicle 2,085 2,085 2,085 2,085 2,085
F&F 54 54 54 54 54
Miscellaneous 24,720 25,461.6 26,225.45 27,012.21 27,822.58
TOTAL PHP672,899 PHP705,166.4 PHP739,015.59 PHP774,524.63 PHP811,775.47

Profit 126,901 479,623.6 901,763.91 1,404,556.35 2,000,961.43

Less: Tax (30%) 38,070.3 143,887.08 270,529.17 421,366.90 600,288.42
Net Profit 88,830.7 335,736.52 631,234.74 983,189.45 1,400,673.01
 Projected Balance Sheet
5 yrs.
Y1 Y2 Y3 Y4 Y5
ASSETS
Current Asset
Cash Php1,069,969.70 Php1,824,04.52 Php2,626,651.74 Php3,485,745.45 Php4,410,368.01
NON-CURRENT ASSET
Land 100,000 100,000 100,000 100,000 100,000
Building 500,000 495,000 490,000 485,000 480,000
Less: Depreciation
Vehicle 417,000 414,915 412,830 410,745 408,000
Less: Depreciation
F&F 9,000 8,946 8,892 8,838 8,784
Less: Depreciation
Total Non-Current Asset Php1,018,861 Php1,011,722 Php1,004,583 Php997,444 Php990,305
TOTAL ASSETS PHP2,088,830.7 PHP2,835,736.52 PHP3,631,234.74 PHP4,483,189.45 PHP5,400,673.01
0

LIABILITIES 0 0 0 0 0

OWNERS EQUITY 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

Investments Net Income 88,830.70 335,736.52 631,234.74 983,189.45 1,400,673.07
TOTAL LIABILITIES &
OWNERS EQUITY PHP2,088,830.7 PHP2,835,736.52 PHP3,631,234.74 PHP4,483,189.45 PHP5,400,673.01
 Projected Cash Flow
5 years
Cash Flow from Operating Services Y1 Y2 Y3 Y4 Y5
Cash received from Customers 3,450,000 3,967,500 4,562,625 5,247,018.75 6,034,071.56

Cash paid for Purchases 2,650,200 2,782,710 2,921,845.5 3,067,937.77 3,221,334.66

Cash paid for Expenses 672,899 705,166.4 739,015.59 774,524.63 811,775.47

Cash paid for Tax 38,070.3 143,887.08 270,529.17 421,366.90 600,288.42

Net Cash provided by Operating

Activities 88,830.7 335,736.52 631,234.74 983,189.45 1,400,673.01

Cash Flow from Investing Act.

Land 100,000 100,000 100,000 100,000 100,000
Acquisition of Vehicle 414,915 412,830 410,745 408,660 406,575
Acquisition of Building 495,000 490,000 485,000 480,000 475,000
Acquisition of F&F 8,946 8,892 8,838 8,784 8,730

Net Cash (1,018,861) (1,011,722) (1,004,583) (997,444) (990,305)

Cash Flow from Financing Net
Investment 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

Cash Balance End 1,069,969.70 1,824,014.52 2,626,651.74 3,485,745.45 4,410,368.01

 ROI (Return on Investment)

Years Net Income Total Assets Return on

Investment (ROI)

1 88,830.7 2,088,830.70 4%
2 335,736.52 2,835,736.52 11%
3 631,234.74 3,631,234.74 17%
4 983,189.45 4,483,189.45 22%
5 1,400,673.01 5,400,673.01 26%
AVERAGE 407,798.28 3,687,932.88 16%