CHAPTER V

FINANCIAL FEASIBILTY

A. TOTAL PROJECT COST

FIXED ASEET AMOUNT

Equipment P 26,000.00

Furniture and Fixtures P 9,700.00

TOTAL P 35,700.00

WORKING CAPITAL AMOUNT

Supply / Raw materials Cost P 1,300,500.00

Tools P 3,820.00

Janitorial Supplies P 5,040.00

Other Supplies P 6,120.00

TOTAL P 1,315,480.00

49.
OPERATING EXPENSE AMOUNT

Salary and Benefits P 444,240.00

Utilities Expense P 12,000.00

Repair and Maintenance P 48,000.00

Permits and Licenses P 5,650.00

Rent Expense P 36,000.00

Miscellaneous Expense P 25,200.00

TOTAL P 571,090.00

TOTAL PROJECTED COST: P 1,922,270.00

50.
B. REVENUE / INCOME

YEARLY PROJECTED SALES

YEAR TOTAL SALES ( IN PESO )

2020 P 2,577,600.00

2021 P 2,835,360.00

2022 P 3,118,896.00

2023 P 3,430,785.06

2024 P 3,773,864.16

The table shows of Annually sales increasing 10 %

YEAR PRODUCT DESCRIPTION TOTAL

Bedside Table Hanging

Lampshade Lampshade Lampshade

2020 P 897,600.00 P 750,000.00 P 930,000.00 P 2,577,600.00

2021 P 987,360.00 P 825,000.00 P 1,023,000.00 P 2,835,360.00

2022 P 1,086,096.00 P 907,500.00 P 1,125,300.00 P 3,118,896.00

2023 P 1,194,705.06 P 998,250.00 P 1,237,830.00 P 3,430,785.06

2024 P 1,314,176.16 P 1,098,075.00 P 1,361,613.00 P 3,773,864.16

The table shows of Annually sales increasing 10 %

51.
C. FINANCIAL ASSUMPTION

 Salary and Benefits increase 2 % yearly

 Utilities expense increase 2 % yearly

 Repair and maintenance increase in 2 % yearly

 Permits and Licenses increases 5 %

 Rent expense remain constant

 Miscellaneous expense increase in 2 % yearly

 Janitorial cost increase 2 % yearly

 Other supplies increase 2 % yearly

 Supplies and Raw materials increase 3 % yearly

 Tax rate is 12 %

D. DEPRECIATION EXPENSE

EQUIPMENT

PARTICULAR COST USEFUL LIFE DEPRECIATION

Portable power P 3,000.00 6 years P 300.00

saw

Computer / printer P 23,000.00 6 years P 2,300.00

Total P 2,600.00

*WE USE 10 %

52.
 FURNITURE AND FIXTURE

PARTICULAR QUANTITY UNIT COST TOTAL USEFUL DEPRECIATION

COST LIFE

Working 2 P 1,200.00 P 2,400.00 12 years P 240.00

tables

Chairs 6 P 300.00 P 1,800.00 10 Years P 180.00

Cabinet 1 P 3,000.00 P 3,000.00 10 Years P 300.00

Electric fan 2 P 1,250.00 P 2,500.00 6 years P 250.00

TOTAL P 970.00

*WE USE 10 %

E. SOURCE OF FUND

The total cost of proposed project will be P 1,922,270.00 pesos wherein

proponents will be contribute of P 384,454.00 each.

PROPONENT AMOUNT

Zaldarriaga, Ryan B. P 384,454.00

Cornejo, Richard P. P 384,454.00

Coral, Kevin Clark J. P 384,454.00

Alambra, Ivy Gwen L. P 384,454.00

Magdadaro, Kent E. P 384,454.00

53.
F. BUSINESS TAX PAYABLE

YEAR 2020 2021 2022 2023 2024

Income

before 691,280.00 898,930.00 1,130,956.174 1,389,894.4995 1,678,539.5026

tax

Less:

Income 82,953.06 107,871.66 135,714.74088 166,787.33994 201,424.74031

tax 12

Net

income 608,326.04 791,058.84 995,241.4331 1,223,107.1596 1,477,114.7623

/ Loss

after

tax

54.
G. YEARLY OPERATING EXPENSES

DESCRIPTION 2020 2021 2022 2023 2024

Salary and 444,240.00 453,124.08 462,187.296 471,431.046 480,859.667
benifits
Utilities 12,000.00 12,240.00 12,484.08 12,734.496 12,989.186
expense
Repair and 48,000.00 48,960.00 49,939.02 50,937.98 51,956.74
maintenance
Permits and 5,650.00 5,932.05 6,229.13 6,540.59 6,867.62
licenses
Rent expense 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Miscellaneous 25,200.00 25,704.00 26,218.08 26,742.44 27,277.29
expense
Janitorial cost 5,040.00 5,140.08 5,243.62 5,348.49 5,455.46
Other 6,120.00 6,242.04 6,367.25 6,494.595 6,624.487
supplies
Depreciation 2,600.00 2,600.00 2,600.00 2,600.00 2,600.00
equipment
Depreciation
furniture @ 970.00 970.00 970.00 970.00 970.00
expenses
Total
operating 585,820.00 596,914.05 608,239.376 619,799.637 631,600.45
expense

55.
 STATEMENT COMPREHENSIVE INCOME
YEAR 2020 2021 2022 2023 2024

Revenue 2,577,600.00 2,835,360.00 3,118,896.00 3,430,785.6 3,773,864.16

Less cost of

supply / raw 1,300,500.00 1,339,515.00 1,379,700.45 1,421,091.4635 1,463,724.2074

materials

Gross 1,277,100.00 1,495,845.00 1,739,195.55 2,009,694.1365 2,310,139.9526

income

OPERATING EXPENSES
YEAR 2020 2021 2022 2023 2024

Salary and 444,240.00 453,124.08 462,187.296 471,431.046 480,859.667

benifits

Utilities 12,000.00 12,240.00 12,484.8 12,734.496 12,989.186

expense

Repair and 48,000.00 48,960.00 49,939.2 50,937.98 51,956.74

maintenance

Permits and 5,650.00 5,932.5 6,229.13 6,540.59 6,867.62

licenses

Rent expense 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00

56.
Miscellaneous 25,200.00 25,704.00 26,218.08 26,742.44 27,277.29

expense

Janitorial cost 5,040.00 5,140.8 5,243.62 5,348.49 5,455.46

Other supplies 6,120.00 6,242.04 6,367.25 6,494.595 6,624.487

Depreciation 2,600.00 2,600.00 2,600.00 2,600.00 2,600.00

equipment

Depreciation

furniture @ expenses 970.00 970.00 970.00 970.00 970.00

Total operating

expense 585,820.00 596,914.05 608,239.376 619,799.637 631,600.45

Income before tax 691,280.00 898,930.5 1,130,956.174 1,389,894.4995 1,678,539.

5026

Less income tax 82,953.6 107,871.66 135,714.7408 166,787.33994 201,424.74

8 031

Net income 608,326.4 791,058.84 995,241.4331 1,223,107.1596 1,477,114.

7623

57.
 PROJECTED CASH FLOW

CASH 2020 2021 2022 2023 2024

OUTFLOW

Equity 1,922,270.00 ______ ______ ______ ______

Investment

Revenue 2,577,600.00 2,835,360.00 3,118,896.00 3,430,785.6 3,773,864.16

Total Cash In 4,499,870.00 2,835,360.00 3,118,896.00 3,430,785.6 3,773,864.16

Flow

CASH OUT FLOW

2020 2021 2022 2023 2024

Equipment 26,000.00 ______ ______ ______ ______

Furniture 9,700.00 ______ ______ ______ ______

and Fixture

Supply and

Raw 1,300,500.00 1,339,515.00 1,379,700.45 1,421,091.4635 1,463,724.2074

Materials

Cost

Tools 3,820.00 ______ ______ ______ ______

58.
Salary and 444,240.00 453,124.08 462,187.296 471,431.046 480,859.667

benifits

Utilities 12,000.00 12,240.00 12,484.8 12,734.496 12,989.186

expense

Repair and 48,000.00 48,960.00 49,939.2 50,937.98 51,956.74

maintenance

Permits and 5,650.00 5,932.5 6,229.13 6,540.59 6,867.62

licenses
Rent expense 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00

Miscellaneou 25,200.00 25,704.00 26,218.08 26,742.44 27,277.29

s expense
Other 6,120.00 6,242.04 6,367.25 6,494.595 6,624.487
supplies
Income tax 82,953.6 107,871.66 135,714.74088 166,787.3394 201,424.74031

Total Cash 2,005,223. 2,040,731.1 2,120,084.566 2,204,108.440 2,293,179.397

out flows 6 6 9 4 7

Cash 2,494,646. 794,628.84 998,811.4331 1,226,677.159 1,480,684.762

Available 4 6 3
Cash ______ 2,494,646.4 3,289,275.24 4,288,086.673 5,514,763.832

Beginning 1 7

Cash end 2,494,646. 3,289,275.2 4,288,086.673 5,514,763.832 6,995,448.595

4 4 1 7

59.