PROJECT COST

PRE-OPERATING EXPENSES
Advertising and promotions 15,000.00
BIR Registration 500.00
DTI Business Name Registration 500.00
Mayor's Permit 5,000.00
Others 1,000.00
Official Receipt Printing 15,000.00
Brgy Clearance 1,000.00 38,000.00

WORKING CAPITAL (3 MONTHS)

Revolving Cash 39,233.50
Manufacturing Costs 194,550.00
Salaries and Wages 48,960.00
SSS/PHIC/HDMF Premiums Expense 11,050.50
Utilities Expense 12,750.00
Supplies Expense 7,256.00
Transportation Expense 6,000.00
Professional Fees 9,000.00 328,800.00

FIXED CAPITAL
Blender 8,000.00
Freezer 30,000.00
Computer Set 15,000.00
Printer 5,000.00
Electric Fan 1,800.00
Office Table 3,500.00
Long Table 5,000.00
Wooden Chairs 6,000.00
Plastic Chairs 900.00
Steel Cabinet 8,000.00 83,200.00

TOTAL PROJECT COST 450,000.00

450,000.00 OWNER
 FRESHLY PICKED
<Address>
NOTES TO FINANCIAL STATEMENTS
For the year ended December 31, 20XX
(Amounts in Philippine peso)

NOTE 1: SALES
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Finished Goods, Beg. - 4,320 5,184 5,746 6,324
Units Produced* 43,200 47,520 52,272 57,499 63,249 2,400.00
Goods Available for Sale 43,200 51,840 57,456 63,245 69,574
Units Spoiled** (4,320) (4,752) (5,227) (5,750) (6,325)
Finished Goods, End.*** (4,320) (5,184) (5,746) (6,324) (6,957)
Units Sold 34,560 41,904 46,483 51,170 56,291
MULTIPLY: Selling Price 39.00 39.00 39.00 39.00 39.00 1.21 1.11 1.10 1.10
SALES 1,347,840.00 1,634,256.00 1,812,844.80 1,995,645.60 2,195,361.79
*The number of units produced will have an increase of 10% annually.
**The number of units spoiled during production which will be considered normal is assumed to be
10% of the units produced annually.
***The desired ending inventory will be 10% of the total goods available for sale.

NOTE 2: COST OF GOODS SOLD

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Direct Materials, Beg. - 55,080.00 60,588.00 66,646.80 73,311.48
Purchases 605,880.00 611,388.00 672,526.80 739,779.48 813,757.43
Direct Materials Available for Use 605,880.00 666,468.00 733,114.80 806,426.28 887,068.91
Direct Materials, End. (55,080.00) (60,588.00) (66,646.80) (73,311.48) (80,642.63) *10% of DM requirement
Direct Materials Used 550,800.00 605,880.00 666,468.00 733,114.80 806,426.28 *10% increase annually *no increase in price
Direct Labor 172,800.00 172,800.00 172,800.00 172,800.00 172,800.00 *fixed
Manufacturing Overhead 54,600.00 60,060.00 66,066.00 72,672.60 79,939.86
Total Manufacturing Cost 778,200.00 838,740.00 905,334.00 978,587.40 1,059,166.14 18.01
Finished Goods, Beg. - 70,038.00 82,490.40 89,729.10 97,045.78
Total Cost of Goods Available for Sale 778,200.00 908,778.00 987,824.40 1,068,316.50 1,156,211.92
Finished Goods, End. (70,038.00) (82,490.40) (89,729.10) (97,045.78) (105,029.53)
COST OF GOODS SOLD 708,162.00 826,287.60 898,095.30 971,270.72 1,051,182.39

Direct Materials, Year 1

QUANTITY UNIT COST TOTAL
Calamansi 4,320 kilograms 30.00 129,600.00
Basil 108 kilograms 40.00 4,320.00
Parsley 108 kilograms 1,100.00 118,800.00
Brown Sugar 1,728 kilograms 50.00 86,400.00
Lemon Grass 86.40 kilograms 50.00 4,320.00
Bottle with label 43,200 pieces 4.80 207,360.00
TOTAL 550,800.00

Direct Labor, Year 1

DAILY MONTHLY ANNUAL TOTAL
Production Woker (2) 300.00 7,200.00 86,400.00 172,800.00
TOTAL 172,800.00
*The business assumed a fixed direct labor for five (5) years.

Manufacturing Overhead, Year 1

QUANTITY UNIT COST TOTAL
Rentals 12 months 1,500.00 18,000.00
Light 12 months 750.00 9,000.00
Water 12 months 1,500.00 18,000.00
LPG 12 tanks 800.00 9,600.00
TOTAL 54,600.00
*Rent, light and water is charged as 50% to production and 50% to administration.

NOTE 3: PRE-OPERATING EXPENSES

YEAR 1
Advertising and promotions 15,000.00
BIR Registration 500.00
DTI Business Name Registration 500.00
Mayor's Permit 5,000.00
Others 1,000.00
Official Receipt Printing 15,000.00
Brgy Clearance 1,000.00
TOTAL 38,000.00

NOTE 4: SALARIES, WAGES AND 13TH MONTH PAY

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Manager 118,560.00 118,560.00 118,560.00 118,560.00 118,560.00
Sales Personnel 93,600.00 93,600.00 93,600.00 93,600.00 93,600.00
Production Worker (2) 16,800.00 16,800.00 16,800.00 16,800.00 16,800.00
TOTAL 228,960.00 228,960.00 228,960.00 228,960.00 228,960.00

DAILY MONTHLY ANNUAL 13TH MONTH TOTAL

Manager 380.00 9,120.00 109,440.00 9,120.00 118,560.00
Sales Personnel 300.00 7,200.00 86,400.00 7,200.00 93,600.00
Production Worker (2) 350.00 8,400.00 - 16,800.00 16,800.00
TOTAL 195,840.00 33,120.00 228,960.00

NOTE 5: SSS/PHIC/HDMF PREMIUMS EXPENSE

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
SSS Premiums Expense 29,653.20 29,653.20 29,653.20 29,653.20 29,653.20
PHIC Premiums Expense 6,600.00 6,600.00 6,600.00 6,600.00 6,600.00
HDMF Premiums Expense 7,948.80 7,948.80 7,948.80 7,948.80 7,948.80
TOTAL 44,202.00 44,202.00 44,202.00 44,202.00 44,202.00

MONTHLY SSS PHIC HDMF TOTAL

Manager 9,120.00 8,076.00 1,650.00 2,188.80 11,914.80
Sales Personnel 7,200.00 6,308.40 1,650.00 1,728.00 9,686.40
Production Worker (2) 8,400.00 15,268.80 3,300.00 4,032.00 22,600.80
TOTAL 29,653.20 6,600.00 7,948.80 44,202.00
NOTE 12: SSS/PHIC/HDMF PREMIUMS PAYABLE
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
SSS Premiums Payable 3,670.00 3,670.00 3,670.00 3,670.00 3,670.00
PHIC Premiums Payable 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00
HDMF Premiums Payable 1,324.80 1,324.80 1,324.80 1,324.80 1,324.80
TOTAL 6,094.80 6,094.80 6,094.80 6,094.80 6,094.80

MONTHLY SSS PHIC HDMF TOTAL

Manager 9,120.00 1,000.00 275.00 364.80 1,639.80
Sales Personnel 7,200.00 780.00 275.00 288.00 1,343.00
Production Worker (2) 8,400.00 1,890.00 550.00 672.00 3,112.00
TOTAL 3,670.00 1,100.00 1,324.80 6,094.80

NOTE 13: PERCENTAGE TAX PAYABLE

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Sales 1,347,840.00 1,634,256.00 1,812,844.80 1,995,645.60 2,195,361.79
Quarterly Sales 336,960.00 408,564.00 453,211.20 498,911.40 548,840.45
MULTIPLY: Percentage Tax Rate 3% 3% 3% 3% 3%
PERCENTAGE TAX PAYABLE 10,108.80 12,256.92 13,596.34 14,967.34 16,465.21

NOTE 14: FINANCIAL RATIOS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
I. LIQUIDITY RATIOS

A. Current Ratio
232,828.40 306,581.64 334,578.70 335,028.51 292,978.48
Current Assets / Current Liabilities
16,203.60 24,286.17 41,822.98 63,381.59 89,269.69
CURRENT RATIO 14.37 12.62 8.00 5.29 3.28

B. Quick Ratio
107,710.40 163,503.24 178,202.80 164,671.26 107,306.32
Quick Assets / Current Liabilities
16,203.60 24,286.17 41,822.98 63,381.59 89,269.69
QUICK RATIO 6.65 6.73 4.26 2.60 1.20

II. ASSET MANAGEMENT RATIOS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
A. Working Capital Turnover
1,347,840.00 1,634,256.00 1,812,844.80 1,995,645.60 2,195,361.79
Sales / Ave. Working Capital
216,624.80 249,460.13 287,525.59 282,201.32 237,677.86
WORKING CAPITAL TURNOVER 6.22 6.55 6.30 7.07 9.24

B. Asset Turnover
1,347,840.00 1,634,256.00 1,812,844.80 1,995,645.60 2,195,361.79
Sales / Ave. Total Assets
504,095.54 585,005.73 723,948.03 876,238.61 1,043,505.64
ASSET TURNOVER 2.67 2.79 2.50 2.28 2.10

III. PROFITABILITY RATIOS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
A. Gross Profit Rate
639,678.00 807,968.40 914,749.50 1,024,374.88 1,144,179.41
Gross Profit / Sales
1,347,840.00 1,634,256.00 1,812,844.80 1,995,645.60 2,195,361.79
GROSS PROFIT RATE 47% 49% 50% 51% 52%

B. Net Profit Rate

157,891.94 273,737.81 338,527.39 406,958.35 480,129.02
Net Profit / Sales
1,347,840.00 1,634,256.00 1,812,844.80 1,995,645.60 2,195,361.79
NET PROFIT RATE 12% 17% 19% 20% 22%

C. Return on Assets
157,891.94 273,737.81 338,527.39 406,958.35 480,129.02
Net Profit / Ave. Total Assets
504,095.54 585,005.73 723,948.03 876,238.61 1,043,505.64
RETURN ON ASSETS 0.31 0.47 0.47 0.46 0.46

D. Return on Current Assets

157,891.94 273,737.81 338,527.39 406,958.35 480,129.02
Net Profit / Ave. Current Assets
232,828.40 269,705.02 320,580.17 334,803.61 314,003.50
RETURN ON CURRENT ASSETS 0.68 1.01 1.06 1.22 1.53

IV. OTHERS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
A. Payback Period
Investment 450,000.00 280,175.20
LESS: Total Cash Inflows 169,824.80 285,670.67
Balance 280,175.20 (5,495.47)

PAYBACK PERIOD (YEARS) 1.98

B. Return on Investment
157,891.94 273,737.81 338,527.39 406,958.35 480,129.02
Net Profit / Investment
450,000.00 367,891.94 401,629.75 500,157.14 547,115.49
RETURN ON INVESTMENT 35% 74% 84% 81% 88%
 FRESHLY PICKED
<Address>
PROJECTED STATEMENT OF PROFIT AND LOSS
For the year ended December 31, 20XX
(Amounts in Philippine peso)

N YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SALES (1) 1,347,840.00 1,634,256.00 1,812,844.80 1,995,645.60 2,195,361.79

LESS: Cost of Goods Sold (2) 708,162.00 826,287.60 898,095.30 971,270.72 1,051,182.39

GROSS PROFIT 639,678.00 807,968.40 914,749.50 1,024,374.88 1,144,179.41

LESS: Operating Expenses

Pre-operating Expenses (3) 38,000.00 - - - -
Salaries, Wages and 13th Month Pay (4) 228,960.00 228,960.00 228,960.00 228,960.00 228,960.00
SSS/PHIC/HDMF Premiums Expense (5) 44,202.00 44,202.00 44,202.00 44,202.00 44,202.00
Utilities Expense (6) 51,000.00 53,550.00 56,227.50 59,038.88 61,990.82
Supplies Expense (7) 7,256.00 7,981.60 8,779.76 9,657.74 10,623.51
Taxes, Permits and Licenses (8) - 70,242.00 84,562.80 93,492.24 102,632.28
Transportation Expense (9) 24,000.00 26,400.00 29,040.00 31,944.00 35,138.40
Percentage Tax (3%) 40,435.20 49,027.68 54,385.34 59,869.37 65,860.85
Professional Fees 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Depreciation Expense (10) 11,932.86 11,932.86 11,932.86 11,932.86 11,932.86
TOTAL OPERATING EXPENSES 481,786.06 528,296.14 554,090.26 575,097.08 597,340.72

OPERATING PROFIT 157,891.94 279,672.26 360,659.24 449,277.80 546,838.69

LESS: Income Tax Expense - 5,934.45 22,131.85 42,319.45 66,709.67

NET PROFIT 157,891.94 273,737.81 338,527.39 406,958.35 480,129.02

 FRESHLY PICKED
<Address>
PROJECTED STATEMENT OF FINANCIAL CONDITION
As of December 31, 20XX
(Amounts in Philippine peso)

N YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

ASSETS
Current Assets
Cash 107,710.40 163,503.24 178,202.80 164,671.26 107,306.32
Inventories (11) 125,118.00 143,078.40 156,375.90 170,357.26 185,672.16
TOTAL CURRENT ASSETS 232,828.40 306,581.64 334,578.70 335,028.51 292,978.48

Noncurrent Assets
Cash Fund - Production Plant 200,000.00 300,000.00 400,000.00 600,000.00 800,000.00
Property and Equipment (10) 71,267.14 59,334.29 47,401.43 35,468.57 23,535.71
TOTAL NONCURRENT ASSETS 271,267.14 359,334.29 447,401.43 635,468.57 823,535.71

TOTAL ASSETS 504,095.54 665,915.93 781,980.13 970,497.09 1,116,514.19

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
SSS/PHIC/HDMF Premiums Payable (12) 6,094.80 6,094.80 6,094.80 6,094.80 6,094.80
Percentage Tax Payable (13) 10,108.80 12,256.92 13,596.34 14,967.34 16,465.21
Income Tax Payable - 5,934.45 22,131.85 42,319.45 66,709.67
TOTAL CURRENT LIABILITIES 16,203.60 24,286.17 41,822.98 63,381.59 89,269.69

Owner's Equity
Beginning Capital - 487,891.94 641,629.75 740,157.14 907,115.49
Initial/Additional Investment 450,000.00 - - - -
Net Profit 157,891.94 273,737.81 338,527.39 406,958.35 480,129.02
Withdrawals (120,000.00) (120,000.00) (240,000.00) (240,000.00) (360,000.00)
ENDING CAPITAL 487,891.94 641,629.75 740,157.14 907,115.49 1,027,244.51

TOTAL LIABILITIES AND OWNER'S EQUITY 504,095.54 665,915.93 781,980.13 970,497.09 1,116,514.19

- - - - -
216,624.80 282,295.47
498,920.27
249,460.13
 FRESHLY PICKED
<Address>
PROJECTED STATEMENT OF CASH FLOWS
For the year ended December 31, 20XX
(Amounts in Philippine peso)

N YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Cash flows from operating activities

Net profit 157,891.94 273,737.81 338,527.39 406,958.35 480,129.02
ADD: Depreciation (10) 11,932.86 11,932.86 11,932.86 11,932.86 11,932.86
TOTAL CASH INFLOWS 169,824.80 285,670.67 350,460.25 418,891.21 492,061.87
Working Capital Changes:
(Increase) decrease in inventories (11) (125,118.00) (17,960.40) (13,297.50) (13,981.36) (15,314.90)
Increase (decrease) in SSS/PHIC/HDMF premiums payable (12) 6,094.80 - - - -
Increase (decrease) in percentage tax payable (13) 10,108.80 2,148.12 1,339.42 1,371.01 1,497.87
Increase (decrease) in income tax payable - 5,934.45 16,197.40 20,187.60 24,390.22
CASH FLOWS FROM OPERATING ACTIVITIES 60,910.40 275,792.84 354,699.56 426,468.46 502,635.06

Cash flows from investing activities

Cash fund - production plant (200,000.00) (100,000.00) (100,000.00) (200,000.00) (200,000.00)
Property and equipment (10) (83,200.00) - - - -
CASH FLOWS FROM INVESTING ACTIVITIES (283,200.00) (100,000.00) (100,000.00) (200,000.00) (200,000.00)

Cash flows from financing activities

Owner's initial investment 450,000.00 - - - -
Withdrawals (120,000.00) (120,000.00) (240,000.00) (240,000.00) (360,000.00)
CASH FLOWS FROM FINANCING ACTIVITIES 330,000.00 (120,000.00) (240,000.00) (240,000.00) (360,000.00)

Net increase (decrease) in Cash 107,710.40 55,792.84 14,699.56 (13,531.54) (57,364.94)

Cash, Beginning - 107,710.40 163,503.24 178,202.80 164,671.26
CASH, ENDING 107,710.40 163,503.24 178,202.80 164,671.26 107,306.32