41

FINANCIAL PLAN

Objectives

 To achieve at least a break-even point on the first year of operation

 To reach a 5% average net profit starting from the second year of

the operation and on the next succeeding years

Note: Income will be divided in five equal parts. Four of which will be given to

each partner and the remaining will be given to the partnership.

Proponents/Owners

Dumalay, Mylene R. P 30,000.00

Fernado, Romarico DC. 30,000.00
Suacillo, Archival B. 30,000.00
Tumpalan, Ivy Katherine M. 30,000.00

P 120,000.00

Organizational Cost

Fixed Asset Acquisition and Depreciation P 28,000.00

Tools, Equipment and Implements 1,790.00
Utilities 650.00
Supplies 12,730.25
Salary 16,640.00
Rent 19,500.00
Permit and Licenses 4,870.00
Transportation In 1,404.00
Promotion and Advertising 6,000.00

TOTAL P 91,584.25
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Schedule of Investment

Note: There will be an annual increase of 5% (inflation rate) on all items except

for the salaries which will be the same for the first 3years of operation of the

business

Fixed Asset Acquisition and Depreciation

Item Value Depreciable Life

Food Cart with P 28,000.00 10 yrs.

Deep Fryer
Total P 28,000.00

Tools, Equipment and Implements

Item Value

Trash Can P 50.00

Tongs 40.00

Tray/Baking Pan 200.00

Storage Bin 1,000.00

Total P 1,790.00

Schedule of Operational Expenditures

Utilities

Item Amount Monthly Amount Yearly

Electricity P 500.00 P 6,000.00

Cell phone Load 150.00 1,800.00

Total 650.00 7,800.00

Year 2010 2011 2012

Electricity P 7,800.00 P 8,190.00 P 8,599.50

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Promotion and Advertising

Bread (20 per day) 600

Flavors 2,880

----------------------------

3,480

Bookmark and Tarpaulin 2,520

----------------------------

Total 6,000

Supplies

Item Amount Amount

Monthly Yearly
Ball Pen P 10.00 P 120.00
Record Book 3.75 45.00
Rug 10.00 120.00
Tissue 1,560.00 18,720.00
Plastic Gloves 30.00 360.00
Plastic Bag 780.00 9,360.00
Brown Paper 1,560.00 18,720.00
Oil 1,093.50 13,122.00
Sugar 1,443.00 17,316.00
Choco 3,120.00 37,440.00
Cookies and 1,560.00 18,720.00
Cream
Mocha 780.00 9,360.00
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Cinnamon 780.00 9,360.00

Total P 12,730.25 P 152,763.00
Salary

Daily Monthly Annually 2010 2011 2012

Yearly Salary Yearly Salary Yearly Salary

Salaries
Expense P 640.00 P 16,640.00 P 199,680.00 P 199,680.00 P 199,680.00 P 199,680.00
(1 Manpower)

Rent

Item Amount Annually 2010 2011 2012

Monthly
Space for P 6,500.00 P 78,000.00 P 78,000.00 P 87,600.00 P 93,000.00
Booth

Permit and Licenses

Item Amount Yearly

BFAD P 1,000.00
Sanitary Permit 320.00
DTI 515.00
Barangay Clearance 25.00
SEC 510.00
Mayor’s Permit 2,000.00
BIR 500.00
Total P 4,870.00

Transportation In

Item Daily Monthly Annually

Transportation P 54.00 P 1,404.00 P 16,848.00

Total P 54.00 P 1,404.00 P 16,848.00

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Costing Per Unit of Each Product

Schedule of Cost of Sales

Product Quantity Sold Cost Per Unit Amount Amount

Per Month Monthly Yearly
9/3 9/3

Plain 1,144/858 5 P 5,720/4,290 P 64,350.00

Choco 2,080/1,560 6 12,480/9,360 140,400.00
Cookies and 1,196/897 6 7,176/5,382 80,730.00
Cream
Mocha 546/410 6 3,276/2,460 36,864.00
Cinnamon 624/468 6 3,744/2,808 42,120.00
Total 5,590/4,193 P 32,396/24,297 P 364,464.00 /
1.12
Sales 325,414.29

Vat Output P 39,414.29

Schedule of Projected Sales

Product Quantity Sold Selling Price Per Amount Amount

Per Month Unit Monthly Yearly
9/3 9/3

Plain 1,144/858 12 P 13,728/10,296 P 154,440.00

Choco 2,080/1,560 15 31,200/23,400 351,000.00
Cookies and 1,196/897 15 17,940/13,455 201,825.00
Cream
Mocha 546/410 15 8,190/6,150 92,160.00
Cinnamon 624/468 15 9,360/7,020 105,300.00
Total 5,590/4,193 P 80,418/60,321 P 904,725.00
/1.12
Sales 807,790.18

Vat Output P 96,934.82

Note: Gross sales was divided by 1.12 to get the total vat output
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Journal Entries 2010 2011 2012

P 120,000.00
Cash
Dumalay, capital P 30,000.00
Fernando, capital 30,000.00
Suacillo, capital 30,000.00
Tumpalan, capital 30,000.00

Cash 904,725.00 949,961.25 997,459.31

Sales 807,790.18 848,179.69 890,588.67
Vat Output 96,934.82 101,781.56 106,870.64

Inventory 325,406.25 341,676.56 358,760.39

Vat Output 39,048.75 41,001.19 43,051.25
Cash 364,455.00 382,677.75 401,811.64

Cost of Sales 364,455.00 382,677.75 401,811.64

Inventory 364,455.00 382,677.75 401,811.64

Fixed Assets 25,000.00 - -

Vat Input 3,000.00 - -
Cash 28,000.00 - -

Rent expense 78,000.00 87,600.00 93,000.00

Permits 4,360.00 4,360.00 4,360.00
Salaries 199,680.00 199,680.00 199,680.00
Tools and Implements 596.67 596.67 596.67
Promotional and Advertising 6,000.00 6,000.00 6,000.00
Transportation In 16,848.00 17,690.40 18,574.92
Utilities 7,800.00 8,190.00 8,599.50
Supplies 60,567.00 63,595.35 66,775.12
Cash 375,045 387,115.75 396,989.54
Vat Input 40,183.39 41,476.69 42,534.59

Depreciation Expense 2,520.00 2,520.00 2,520.00

Accumulated Depreciation 2,520.00 2,520.00 2,520.00

Provision for Income Tax 24,897.00 24,897.00 24,897.00

Income Tax Payable 24,897.00 24,897.00 24,897.00

Income Tax Payable 24,897.00 24,897.00 24,897.00

Cash 24,897.00 24,897.00 24,897.00

Vat Output 57,885.11 60,779.62 63,817.75

Vat Input 43,183.39 41,476.69 42,534.59
Vat Payable 14,701.72 19,302.93 21,283.16

Vat Payable 14,701.72 19,302.93 21,283.16

Cash 14,701.72 19,302.93 21,283.16
Note: All the Accounts have an increase of 5% yearly except for the rent expense which has 6% annual increase.