FINANCIAL ASPECT
because this will show the viability and the future profitability of the proposed
product. It draws the information needed by the investor before deciding to enter
economic decision.
The whole process involves proper financial planning, control process and
The figures shown are based on the previous results of the marketing,
technical, management, legal taxation, and financing. The results are quantified
and expressed in this chapter in peso terms to come up with realistic and
GENERAL ASSUMPTIONS
Financial Assumptions
are used affecting the reflected amounts and disclosures. These assumptions
The following are the assumptions used in making the projected financial
statements.
3. The business operation will be six (6) days per week, excluding holidays.
8. A work schedule of 8 hours per day will be the basis of the production
9. The production capacity will be the same for the next five years.
10. The production will be based on the market share of the proposed
product.
11. There will be an annual increase of 1% of the selling price of the product.
selling price of the raw materials. It will be based on the selling price of the
previous year.
Saturdays.
16. There will be no increase of compensation of the bookkeeper for the next
five years.
17. SSS, PhilHealth and PAG-IBIG contribution will be based on the monthly
b. Cleaning Supplies 1%
11. The production tools and supplies shall be treated as an outright expense
a. Electricity
Administrative 25%
b. Water
Administrative 20%
c. Telecommunication
Administrative 65%
Selling 35%
d. Rent Expense
Administrative 10%
13. Permits and Licenses are assumed to be constant for the next 5 years.
14. Employee Benefits expenses and compensation on workers are allocated
a. Administrative 2% annually
b. Selling - 1% annually
17. The following items will be accrued for the last month of the period:
a. Employee Benefits
iii. PAG-IBIG
i. Professional Fee
c. Utilities Expense
i. Electricity Expense
d. Commission Expense