EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat Ave., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4339/41www.eac.edu.ph
ISO 9001:2015 CERTIFIED
SENIOR HIGH SCHOOL DEPARTMENT QUALITY MANAGEMENT SYSTEM
CHAPTER VI
FINANCIAL STUDIES
A. Startup Capital Requirement
Opening a coffee shop is very much challenging especially for new entrepreneurs.
That is why having a detailed list of the Startup Capital Requirements can be a good
start. A Startup Capital helps the entrepreneurs to determine their required capital in
order to establish their business. The table succeeding this statement contains all the
modified expenditures of the SEA Avenue. It is categorized into various sections such
as the booth construction, furniture and fixtures, equipments, ingredients, and so on.
The amounts of each expenditure were multiplied by its quantity and their total amounts
were added altogether to determine what the required capital is. Aside from the one
time purchase of the SEA Avenue, their startup funds for the first month of the business
were combined since it will still be a part of the overall capital. Once the business have
gained profit for the first month of its operations, the entrepreneurs will then used the
profit again to run the business continuously. According to the associated costs within
the SEA Avenue’s startup business, the anticipated cash required for the company is
approximately ₱162,695.50. Kindly see the table below for the detailed outlines.
SEA Avenue’s
Startup Capital Requirement
Capital Expenditure Amount Quantity Total Amount
Booth Construction
Paint ₱450.00 5 gals. ₱2,250.00
Paint roller brush ₱200.00 5 pcs. ₱1,000.00
Total Booth Construction Expense ₱3,250.00
Furniture & Fixture
Tables ₱750.00 10 pcs ₱7,500.00
Chairs ₱300.00 20 pcs ₱6,000.00
Uno card ₱100.00 10 pcs ₱1,000.00
Chess board ₱200.00 10 pcs ₱2,000.00
Lightings ₱150.00 20 pcs ₱3,000.00
Quotes and Frames ₱80.00 15 pcs ₱1,200.00
Vases ₱120.00 10 pcs ₱1,200.00
Total Furniture & Fixture Expense ₱21,900
Equipments
Plates ₱100.00 100 pcs ₱10,000.00
Utensils ₱50.00 100 pcs each ₱5,000.00
Coffee cups ₱80.00 100 pcs ₱8,000.00
Kitchen Wares ₱3,500 2 sets ₱7,000.00
Automatic drip coffee makers ₱2,000.00 2 pcs ₱4,000.00
High-quality espresso machine ₱2,250.00 2 pcs ₱4,500.00
Coffee grinder ₱300.00 2 pcs ₱600.00
Ovens ₱1,500.00 2 pcs ₱3,000.00
Toasters ₱500.00 2 pcs ₱1,000.00
Refrigerators ₱10,000.00 1 pc ₱10,000.00
Blenders ₱350.00 2 pcs ₱700.00
Iced Tea Brewers ₱1,500.00 1 pc ₱1,500.00
Commercial coffee grinder ₱400.00 2 pcs ₱800.00
Point of Sale System ₱15,000.00 1 pc ₱15,000.00
Total Equipment Expense ₱72,100
License Expense
BIR Registration ₱5,000.00 N/A ₱5,000.00
Sanitary Permit ₱2,000.00 N/A ₱2,000.00
Business Permit ₱3,000.00 N/A ₱3,000.00
Total License Expense ₱10,000.00
Ingredients Expense (Startup – First Month)
QF-PQM-035 (02.27.2021) Rev.03
• VIRTUE • EXCELLENCE • SERVICE
EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat Ave., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4339/41www.eac.edu.ph
ISO 9001:2015 CERTIFIED
SENIOR HIGH SCHOOL DEPARTMENT QUALITY MANAGEMENT SYSTEM
Adobo Rice Meal ₱93.50 30 servings ₱2,805.00
Khao Khai Chiao ₱78.67 30 servings ₱2,360.10
Nasi Lemak ₱114.17 30 servings ₱3,515.10
Nasi Goreng ₱108. 84 30 servings ₱3,265.20
Hainanese Curry Rice ₱99 30 servings ₱2,970.00
Coffee (Philippines) ₱28 50 servings ₱1,400.00
Coffee (Thailand) ₱51 50 servings ₱2,550.00
Coffee (Indonesia) ₱46.80 50 servings ₱2,340.00
Coffee (Malaysia) ₱53.40 50 servings ₱2,670.00
Coffee (Singapore) ₱59.40 50 servings ₱2,970.00
Total Ingredients Expense ₱26,845.50
Rent Expense (Startup – First Month)
Commercial Space Rent ₱5,000.00 1 month ₱5,000.00
Total Rent Expense 5,000.00
Advertising Expense (Startup – First Month)
Fliers ₱5.00 200 pcs ₱1,000.00
Tarpaulins ₱200.00 6 pcs ₱1,200.00
Video Advertisements ₱300.00 3 pcs ₱900.00
Total Advertising Expense ₱3,100.00
Utilities Expense (Startup – First Month)
Water ₱1,500.00 1 month ₱1,500.00
Electricity ₱5,000.00 1 month ₱5,000.00
Gas ₱2,000.00 1 month ₱2,000.00
Total Utilities Expense ₱8,500.00
Telecoms Expense
Internet and LAN ₱2,000.00 1 month ₱2,000.00
Total Telecoms Expense ₱2,000.00
Transportation (Startup – First Month)
Transportation Fee ₱2,000.00 1 month ₱2,000.00
Total Transportation Expense ₱2,000.00
Salaries
Salaries for Employees ₱4,000.00 2 employees ₱8,000.00
Total Salaries Expense ₱8,000.00
TOTAL STARTUP CAPITAL ₱162.695.50
B. Balance Sheet
The following balance sheet summarizes the financial position of the business for
the financial years 2022, 2023, and 2024. It's a preview of SEA Avenue's assets,
liabilities, and equity written out. The table below shows a growth within the financial
position of the company within the span of three years. The assets of the business
continuous to grow while the liabilities start to decrease as time go by, which could
indicate that its operations are successful all throughout. On the other hand, the equity
of the business also shows a growth simultaneously with the assets. Refer to the table
below for the complete overview of the projected balance sheet of the SEA Avenue.
SEA Avenue
Projected Balance Sheet
For Financial Years 2022 - 2024
ASSETS
2022 2023 2024
CURRENT ASSETS
Cash ₱300,500.00 ₱330,000.00 ₱303,500.00
Accounts Receivable ₱12,000.00 ₱10,000.00 ₱36,600.00
QF-PQM-035 (02.27.2021) Rev.03
• VIRTUE • EXCELLENCE • SERVICE
EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat Ave., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4339/41www.eac.edu.ph
ISO 9001:2015 CERTIFIED
SENIOR HIGH SCHOOL DEPARTMENT QUALITY MANAGEMENT SYSTEM
Inventory ₱21,800.00 ₱22,000.00 ₱24,500.00
Supplies ₱22,000.00 ₱20,000.00 ₱22,800.00
Prepaid Rent ₱5,000.00 ₱5,000.00 ₱5,000.00
Total Current Assets ₱361,300.00 ₱387,000 392,400.00
NON-CURRENT ASSETS
Equipment ₱40,200.00 ₱30,000.00 ₱40,500.00
Less: Accum Dep (Equipment) ₱4,000.00 ₱5,500.00 ₱4,200.00
Furnitures and Fixtures ₱21,000.00 ₱22,700.00 ₱24,500.00
Less: Accum Dep (Furnitures) ₱5,000.00 ₱7,000.00 ₱5,500.00
Total Non-Current Assets ₱52,200.00 ₱40,200.00 ₱55,300.00
TOTAL ASSETS ₱413,500.00 ₱427,200.00 ₱447,700.00
LIABILITIES AND OWNER'S EQUITY
2022 2023 2024
CURRENT LIABILITIES
Accounts Payable ₱23,000.00 ₱13,800.00 ₱5,980.00
Notes Payable ₱10,000.00 ₱8,000.00 ₱7,000.00
Salaries Payable ₱8,500.00 ₱7,800.00 ₱7,950.00
Utilities Payable ₱3,000.00 ₱8,500.00 ₱2,890.00
Interest Payable ₱3,500.00 ₱3,000.00 ₱1,870.00
Unearned Revenues ₱0.00 ₱2,000.00 ₱0.00
Total Current Liabilities ₱48,000.00 ₱43,100.00 ₱25,690.00
NON-CURRENT LIABILITIES ₱3,000.00 ₱0.00 ₱0.00
Total Non-Current Liabilities ₱0.00 ₱0.00 ₱0.00
TOTAL LIABILITIES ₱48,000.00 ₱43,100.00 ₱25,690.00
OWNER'S EQUITY
SEA Avenue, Capital ₱365,500.00 ₱384,100.00 ₱422,010.00
TOTAL LIABILITIES AND OWNER'S
EQUITY ₱413,500.00 ₱427,200.00 ₱447,700.00
C. Projected Income Statement
An Income Statement lists all the revenues and expenses of an entity throughout
their business operations. And so, the following income statement also does the same.
The succeeding table contains the projected comprehensive income of the SEA Avenue
for its first three financial years from 2022 up to 2024. The sales of the said entity are
increasing every year which could stipulate that its business operation have a stable
flow. As the sales increases, the cost of goods sold is also increasing. There was also a
rise in terms of the gross profit. With regards to the expenses, the business shows a
decrease within the first and second year however, there was a slight increase within
the third year and the previous year. Overall, the profit or the net income that was
gained by the SEA Avenue shows a tremendous surge every year. As a matter of fact,
by the use of horizontal analysis approach, it is clearly seen that the net income from
the first year have increased by 2.31% within the second year while on the third year, an
increase of 2.78% is present from the first year of its operations. Kindly refer to the
following table to fully preview the projected income statement of the said entity.
QF-PQM-035 (02.27.2021) Rev.03
• VIRTUE • EXCELLENCE • SERVICE
EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat Ave., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4339/41www.eac.edu.ph
ISO 9001:2015 CERTIFIED
SENIOR HIGH SCHOOL DEPARTMENT QUALITY MANAGEMENT SYSTEM
SEA Avenue
Projected Income Statement
For Financial Years 2022 - 2024
2022 2023 2024
Sales ₱845,900.00 ₱899,300.00 ₱955,350.00
Less: Sales Discounts ₱24,900.00 ₱28,100.00 ₱29,400.00
Less: Cost of Goods Sold ₱335,000.00 ₱378,000.00 ₱400,900.00
Gross Profit ₱466,000.00 ₱493,200.00 ₱527,050.00
Operating Expense
Booth Construction Expense ₱3,250.00 ₱0.00 ₱3,250.00
Furniture and Fixture Expense ₱40,000 ₱0.00 ₱8,000.00
Equipment Expense ₱72,100.00 ₱0.00 ₱13,500.00
Dep. Expense (Equipment) ₱5,500.00 ₱0.00 ₱3,800.00
License Expense ₱10,000 ₱10,000.00 ₱10,000.00
Ingredients Expense ₱13,000.00 ₱19,000.00 ₱16,000.00
Rent Expense ₱60,000.00 ₱60,000.00 ₱60,000.00
Advertising Expense ₱9,300.00 ₱9,300.00 ₱9,300.00
Utilities Expense ₱50,000.00 ₱65,000.00 ₱48,000.00
Telecoms Expense ₱24,000.00 ₱24,000.00 ₱24,000.00
Transportation Expense ₱24,000.00 ₱24,000.00 ₱24,000.00
Salaries Expense ₱96,000.00 ₱96,000.00 ₱96,000.00
Total Operating Expense ₱407,150.00 ₱308,300.00 ₱315,850.00
Net Income ₱55,850.00 ₱184,900.00 ₱211,200.00
QF-PQM-035 (02.27.2021) Rev.03
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