ALL PROJECTS ARE CONSIDERED VIABLE

ONLY WHEN THEY ARE EXPECTED TO:

BE PROFITABLE TO MEET SHORT- TERM
OBLIGATIONS
BE LIQUID & TO REMAIN LIQUID DURING
ADVERSITIES
GROW IN THEIR ABILITY FINANCE THEIR
OPERATIONS MOSTLY FROM NET-WORTH
SOURCES RATHER THAN CREDIT APPLICATIONS
BE ABLE TO SERVICE THEIR FINANCING CHARGES.

MAJOR ASSUMPTIONS
TOTAL PROJECT COSTS
INITIAL WORKING CAPITAL REQUIREMENTS
ALTERNATIVE SOURCE OF FINANCING
CONSIDERED, IF ANY
SOURCES OF FINANCING THE PROJECT
BEGINNING & PRO-FORMA FINANCIAL
STATEMENTS
FINANCIAL ANALYSES

IN THE FORMULATION OF FINANCIAL

PROJECTIONS, ASSUMPTIONS PLAY A MAJOR
ROLE BECAUSE THEY SERVE AS THE
FOUNDATION FOR ESTIMATING THE FUTURE
EXPENDITURES, EXPENSES, & REVENUES OF
THE PROJECT AS ACCURATE AS POSSIBLE.
THESE ASSUMPTIONS, THEREFORE, MUST BE
BASED ON WELL-CONSIDERED, REALISTIC &
WORKABLE FACTS.

1. EXISTING BUSINESS PRACTICES IN THE INDUSTRY

WHERE THE PROJECT BELONGS MAY PROVIDE SOME
VALUABLE INFORMATION & INSIGHTS ON:

CREDIT TERM
CREDIT EXTENSION
BAD-DEBT ALLOCATIONS
BAD-DEBT WRITE-OFF
QUALITY-CONTROL COSTS
DIVIDENT POLICIES
SALES RETURNS, ALLOWANCES, & DISCOUNTS
LABOR & MANAGEMENT COMPENSATION
OVERHEAD ACCOUNTS
INVENTORY COSTING
OPERATING ACCOUNTS
FIXED- ASSET REQUIREMENTS
METHOD OF DEPRECIATION & AMORTIZATION
INTANGIBLE ASSET PRE-REQUISITE

2. PREVIOUSLY MADE FEASIBILITY STUDIES DIRECTLY RELATED

TO THE PROJECT MAY CONTRIBUTE ADDITIONAL FACTORS TO
BE CONSIDERED, WHICH EITHER CONFIRM OR CONTRADICT
FINDINGS IN INDUSTRY STANDARDS, SPECIFICALLY THOSE
ITEMS INVOLVED IN THE COMPUTATIONS OF:
SELLING PRICE
SALES FORECASTS
UNFORSEEN COSTS
PRODUCTION VOLUME
PRODUCT MIX

GOVERNMENTAL REGULATIONS & INCENTIVES DIRECTLY OR

INDIRECTLY AFFECT THE PROJECT, SUCH AS:
IMPORT POLICIES
EXPORT POLICIES
TAX RATES
TAX EXEMPTIONS
PRICE CEILINGS
RELEVANT PRESIDENTIAL DECREES OR LOI

OTHER PERTINENT DATA WHICH CAN JUSTIFY

THE ASSUMPTIONS OF THE STUDY, SUCH AS

INDUSTRY POLICIES
PRE-FEASIBILITY STUDIES
SYMPOSIUM & CONFERENCES, &
MATERIAL OUTPUTS OF INDUSTRY ASSOCIATIONS.

ESTIMATES OF THE PROJECTS INITIAL

COST/ASSET REQUIREMENT WHICH MUST BE
BASED ON THE MATERIALS, SUPPLIES,
EQUIPMENT, PHYSICAL PLANT, & MANPOWER
NEEDS OF THE PROJECT SPECIFIED IN THE
TECHNICAL PORTION.

LAND & LAND IMPROVEMENTS

BUILDINGS, INCLUDING ELECTRIC & WATER UTILITIES,

FURNITURE & FIXTURES

COST OF LAND, NOTARY FEES, REGISTRATION DUTIES, &

OTHER RELATED COSTS

BUILDING COST, WELLS, WATER PIPES, ELECTRICAL

CONNECTIONS, GAS SUPPLY, TELEPHONE SYSTEM,
RESERVOIR & TANKS, WASTE WATER DISPOSAL, FENCING,
ROADS & PATHS, EMPLOYEES HOUSING, & FIRE PROTECTION

EQUIPMENT, PLUS INSTALLATION COSTS

PURCHASE & INSTALLATION OF MACHINERY

PURCHASE TAXES, FREIGHT & INSURANCE EXPENSES,

CUSTOMS DUTIES

TRIAL-RUN ASSOCIATED WITH ELECTRIC UTILITIES,

EQUIPMENT & MACHINERY

ELECTRICITY & TELEPHONE LINES, ELECTRICAL EQUIPMENT,

INTERNAL TRANSPORT EQUIPMENT, VEHICLES, OFFICE
EQUIPMENT & SUPPLIES, FURNITURE & FIXTURES,
MAINTENANCE & CLEANING EQUIPMENT, & SPARE PARTS

INVENTORY INVESTMENTS

PURCHASES OF MATERIALS & SUPPLIES

FREIGHT EXPENSES

INDIRECT & DIRECT LABOR W/ CORRESPONDING FRINGE BENEFITS

HEAT, LIGHT, & POWER
MAINTENANCE
WAREHOUSING EXPENSES RELATED TO RAW MATERIALS
MATERIALS IN PROCESS
FINISHED GOODS

PRE-PAID EXPENSES (COST OF INITIAL INVESTIGATIONS, PRE-FEASIBILITY STUDIES,

RESEARCH & TECHNICAL STUDIES, ECONOMIC & MARKETING STUDIES,
FINANCIAL & PROFITABILITY STUDIES, DESIGN STUDIES, &
CONSULTING- ENGINEERING FEES).
INTANGIBLE ASSETS (PATENTS, LICENSES, GOODWILL, REPRODUCTION RIGHTS)
OPERATING SALARIES
WAGES & FRINGE BENEFITS
ENGINEERING COSTS
OPERATING TAXES
OFFICE SUPPLIES
COMMUNICATION FACILITIES
OFFICE UTILITIES
BILLING COSTS
TRANSPORTATION COSTS
EXPENSES FOR ADVERTISING
BORROWING COSTS
PROVISIONS FOR UNFORSEEN COSTS

INVENTORY-RELATED COSTS

CASH CREDITS

STEPS IN DECIDING ON THE FINANCING

SCHEME TO SUPPORT THE PROJECT:

LIST THE ALTERNATIVE SOURCES OF FINANCING

DETERMINE SOURCES SELECTED OR PROPOSED AS A
FUNCTION OF MAXIMUM PROFITABILITY
FINALIZE THE AMOUNT & TERMS FOR EACH SOURCE
SELECTED
STATE THE STATUS OF FINANCING FROM EACH
SOURCE
SPECIFY THE FINANCING OF CONTINGENCIES &
FLUCTUATIONS IN WORKING CAPITAL
PINPOINT ALTERNATIVE SOURCES OF FINANCING IN
ORDER OF PRIORITY

PRESENT IN AN ORDERLY &

UNDERSTANDABLE FORM THE CASH BUDGET,
THE OPERATING PERFORMANCE, & THE
FINANCIAL CONDITION OF A BUSINESS
ENTERPRISE
IT DEPICT THE PROGRESS OF A FIRM IN
FINANCIAL TERMS

1. THE INCOME STATEMENT- IS THE

COMPUTATION OF THE PROJECTS TOTAL
REVENUES & TOTAL COST FOR ONE PERIOD
OR FISCAL YEAR,THEREBY ARRIVING AT THE
CONCERNS NET INCOME OR DEFICIT WITHIN
THE PERIOD, TOGETHER WITH ITS
PERFORMANCE IN TERMS OF PROFITABILITY &
COST CONTROL

2. THE CASH-FLOW STATEMENT or THE CASH

BUDGET- IS A SYSTEMATIC PRESENTATION OF
CASH RECEIPTS & DISBURSEMENTS FOR A
GIVEN OPERATING PERIOD OR FISCAL YEAR,
TAKING FOR GRANTED THE ACCRUAL
CONCEPT IN ACCOUNTING.

3. THE BALANCE SHEET- SHOWS THE ASSETS

DERIVED BY THE PROJECT FROM CORRESPONDING
LIABILITIES & EQUITIES (NET WORTH). IT IS AN
OVERALL PICTURE OF A FIRMS FINANCIAL
CONDITION AS OF A CETAIN TIME.

THIS PORTION GAUGES THE PROJECTS

PROFITABILITY, LIQUIDITY, CASH SOLVENCY &
GROWTH OVER TIME.

THESE MEASURES ARE USED TO DETERMINE A FIRMS ABILITY TO MEET

SHORT-TERM OBLIGATIONS, & TO REMAIN SOLVENT IN THE EVENT OF
ADVERSITIES.
1. CURRENT RATIO
=
CURRENT ASSETS
CURRENT LIABILITIES
2. QUICK or ACID-TEST RATIO = CURRENT ASSETS- INVENTORIES
CURRENT LIABILITIES
3. LIQUIDITY OF INVENTORIES
4. DEFENSIVE POSITION =

COST OF SALES
AVERAGE INVENTORY

CASH + MARKETABLE SECURITIES + RECEIVABLES

PROJECTED OPERATING EXPENDITURE/NUMBER OF DAYS

THESE TESTS ARE EMPLOYED TO PRESENT THE PROJECTS ABILITY

TO MEET LONG-TERM OBLIGATIONS.
1. DEBT-TO-NETWORTH RATIO

TOTAL LIABILITIES
TOTAL EQUITIES

2. TOTAL CAPITALIZATION RATIO =

LONG-TERM LIABILITIES
LONG-TERM LIABILITIES & EQUITIES

THESE SHOWS THE OPERATIONAL PERFORMANCE & EFFICIENCY OF

THE PROJECT.
1. NET PROFIT MARGIN

NET INCOME AFTER TAX

SALES
2. OPERATING PROFIT MARGIN =
PROFIT BEFORE INTEREST & TAXES
SALES
3. GROSS PROFIT MARGIN =
GROSS PROFIT
SALES
4. RETURN ON FINANCIERS INVESTMENT
=
NET INCOME + INTEREST
STOCK EQUITY & LONG-TERM LIABILITY
5. RETURN ON OWNERS INVESTMENT =
NET INCOME
STOCK EQUITY
6. RETURN ON COMMON STOCK EQUITY =
NET INCOME PREFERRED STOCK DIVIDENDS
NET-WORTH PAR VALUE OF PREFERRED STOCK
7. RETURN ON NET OPERATING PROFIT =
PROFIT BEFORE INTEREST & TAXES
TOTAL TANGIBLE ASSETS
8. ASSET TURNOVER
=
SALES
TOTAL TANGIBLE ASSETS
9. RETURN ON ASSETS, OR EARNING POWER =
NET INCOME
TOTAL TANGIBLE ASSETS

TEST OF TOTAL DEBT COVERAGE = PROFIT BEFORE INTEREST & TAXES

(INTEREST + PRINCIPAL PAYMENT)
(1/1 INCOME TAX RATE)

THIS TECHNIQUE IS EMPLOYED TO DETERMINE THE

MAJOR USES & SOURCES OF FUNDS WITHIN ONE YEAR
IN A PROJECTS LIFE.
1. CASH-FLOW ANALYSIS
a. SOURCES OF FUNDS:

NET DECREASE IN ANY ASSET OTHER THAN CASH

NET INCREASE IN ANY LIABILITY
PROCEEDS FROM THE SALE OF STOCKS
FUNDS PROVIDED BY OPERATIONS

b. USES OF FUNDS:

NET INCREASE IN ANY ASSET OTHER THAN CASH & FIXED ASSETS
GROSS INCREASE IN FIXED ASSETS
NET DECREASE IN ANY LIABILITY
A RETIREMENT OF STOCK
CASH DIVIDENDS

 2. WORKING CAPITAL-FLOW ANALYSIS

a. SOURCES OF FUNDS:

NET DECREASE IN ANY ASSET OTHER THAN CURRENT ASSETS

NET INCREASE IN LONG-TERM LIABILITIES
PROCEEDS FROM THE SALE OF STOCKS
FUNDS PROVIDED BY OPERATIONS

b. USES OF FUNDS:

NET INCREASE IN OTHER ASSETS

GROSS INCREASE IN FIXED ASSETS
NET DECREASE IN LONG-TERM LIABILITIES
RETIREMENT OF STOCK
CASH DIVIDENDS

THESE FUNCTIONS INDICATE HOW THE PROJECT EMPLOYS ASSETS FOR

WHICH IT PAYS A FIXED COST. BEFORE THESE TESTS ARE APPLIED, A
CLARIFICATION SHOULD BE MADE ON WHAT VARIABLE & FIXED COSTS
ARE.
1. BREAK-EVEN VOLUME ANALYSIS
BEV =

FIXED COSTS
SELLING PRICE VARIABLE COST/UNIT

2. BREAK-EVEN CASH ANALYSIS

BEC =

CASH FIXED COSTS

SELLING PRICE CASH VARIABLE COST/UNIT

3. BREAK-EVEN SELLING PRICE ANALYSIS

BESP =

VARIABLE COSTS + FIXED COSTS

UNIT VOLUME

TOTAL COST
SALES

X SELLING PRICE

4. BREAK-EVEN SALES ANALYSIS

BES

BESP X UNIT VOLUME

FIXED COST
1 (VARIABLE COST/NET SALES)

THESE TECHNIQUES PRESENT HOW A PROJECT EMPLOYS

FUNDS WHICH PAY A FIXED RETURN.
EARNINGS PER SHARE

NET INCOME
SHARES

DIVIDENDS PER SHARE = NET INCOME PREFERRED STOCK DIVIDENDS RETAINED EARNINGS
COMMON SHARE

THESE FINANCIAL TOOLS EVALUATE THE

JUSTIFICATION FOR INVESTING IN THE
PROJECT.
AVERAGE RATE OF RETURN

PAYBACK PERIOD IN YEARS

AVERAGE NET INCOME

AVERAGE NET INVESTMENT
INITIAL-YEAR CASH OUTFLOW
SUCCEEDING ANNUAL NET CASH FLOW

CAPITAL RECOVERY OR CASH PAY-OFF PERIOD IN YEARS =

STOCKS
ANNUAL CASH DIVIDENDS

Expected Sales
Less:
Raw materials
Labor cost
Utilities
Marketing expenses
Depreciation costs
Others
Equals:

Net profits

ROI = Net profit / Total expenses X 100%.

SAMPLE PROJECTED INCOME STATEMENT

PARTICULAR
Sales in units
Product X @ P68.00
Sales
LESS: Cost of Sales
Direct materials & labor
Manufacturing overhead
Total
Raw materials inventory, beginning
Raw materials inventory, ending
Cost of Sales
Gross Profit on Sales
LESS: Operating expenses
Salaries and Wages
Employees benefits
Representation
Retainers fee
Taxes and licenses
Rental
Office supplies
Light and power
Miscellaneous
Allowance for depreciation
Provisions for bad debts
Amortization of operating expenses
Total operating expenses
Income operating expenses
LESS: Financial charges
Income before income tax
Income tax

Y1
25, 000.00

Y2
43, 000.00

Y3
51, 800.00

Y4
54, 000.00

Y5
57, 100.00

1, 700, 000.00

2, 924, 000.00

3, 522, 400.00

3, 672, 000.00

3, 882, 800.00

776, 300.00
73, 200.00
849, 500.00
0.00
(54, 500.00)
795, 000.00
905, 000.00

1, 237, 300.00
131, 800.00
1, 369, 100.00
54, 500.00
(54, 500.00)
1, 369, 100.00
1, 554, 900.00

1, 534, 700.00
143, 800.00
1, 678, 500.00
54, 500.00
(104, 500.00)
1, 628, 500.00
1, 893, 900.00

1, 559, 000.00
157, 000.00
1, 716, 000.00
104, 500.00
(104, 500.00)
1, 716, 000.00
1, 956, 000.00

1, 636, 800.00
171, 400.00
1, 808, 200.00
104, 500.00
(194, 500.00)
1, 718, 200.00
2, 164, 600.00

107, 800.00
21, 500.00
6, 000.00
6, 300.00
9, 200.00
2, 500.00
1, 500.00
1, 100.00
7, 800.00
1, 500.00
15, 000.00
2, 000.00
182, 200.00
722, 800.00
18, 000.00
704, 800.00
246, 600.00

221, 700.00
31, 000.00
6, 000.00
10, 800.00
9, 200.00
6, 000.00
2, 600.00
1, 900.00
14, 500.00
2, 500.00
10, 000.00
2, 000.00
318, 200.00
1, 236, 700.00
.00
1, 236, 700.00
432, 800.00

266, 200.00
37, 000.00
6, 000.00
10,800.00
9, 200.00
6, 000.00
2, 900.00
2, 100.00
17, 000.00
2, 500.00
5, 000.00
2, 000.00
366, 700.00
1, 527, 200.00
.00
1, 527, 200.00
534, 500.00

319, 400.00
44, 700.00
6, 000.00
11, 800.00
10, 100.00
6, 100.00
3, 200.00
2, 400.00
20, 200.00
2, 500.00
2, 000.00
2, 000.00
430, 400.00
1, 525, 600.00
.00
1, 525, 600.00
533, 900.00

383, 200.00
53, 700.00
6, 000.00
13, 000.00
11, 100.00
6, 500.00
3, 500.00
2, 600.00
24, 000.00
2, 500.00
2, 100.00
2, 000.00
509, 600.00
1, 655, 000.00
.00
1, 655, 000.00
547, 700.00

Projected Income Statement

For the years ended December 31,2011-2015
2011
2012
2013
2014
2015
192,469,820.22 224,547,396.48 261,151,729.98 302,873,254.90 350,380,415.90
68,980,408.74 76,640,389.80 84,354,256.81 92,497,006.62 100,847,746.28
123,489,411.48 147,907,006.68 176,797,473.17 210,376,248.28 249,532,669.62

Net Sales (Schedule 1)

Less: Cost of Goods Sold (Schedule 2)
Gross Profit
Less: Administrative Expenses
Organizational Cost
9,551,729.00
Amortization of Software
30,000.00
Office Supplies Expense (Schedule 4)
130,968.00
Insurance Expense (Schedule 5)
215,223.53
Depreciation Expense (Schedule 6)
1,712,027.33
Salaries Expense (Schedule 7)
6,435,000.00
SSS Contribution (Schedule 7)
273,679.20
Pag-Ibig Contribution (Schedule 7)
43,200.00
Philhealth Contribution (Schedule 7)
60,000.00
Utilities Expense (Schedule 8)
1,485,160.00
Property Tax (Schedule 11)
108,578.26
Repairs and Maintanance (Schedule
12)
72,000.00
Advertising Expense (Schedule 13)
257,500.00
Training Expenses (Schedule 15 )
1,757,500.00
Miscellaneous Expense (Schedule 16)
19,456.28
Total Administrative Expenses
22,152,021.60
Total
101,337,389.88
Add: Interest Income on Bonds (Schedule 16)
Income before Interest and Taxes
101,337,389.88
Less: Interest Expense (Schedule 10)
24,000,000.00
Income before Taxes
77,337,389.88
Less: Income Tax 35% (Schedule 14)
27,068,086.46
Net Income
50,269,303.42

30,000.00
154,542.24
221,680.24
1,712,027.33
6,435,000.00
273,679.20
43,200.00
60,000.00
1,529,714.80
111,835.61

30,000.00
162,125.29
228,330.66
1,712,027.33
6,435,000.00
273,679.20
43,200.00
60,000.00
1,575,606.24
115,190.68

30,000.00
167,431.06
235,180.57
1,712,027.33
6,435,000.00
273,679.20
43,200.00
60,000.00
1,622,874.43
118,646.40

30,000.00
172,520.30
242,236.00
1,712,027.33
6,435,000.00
273,679.20
43,200.00
60,000.00
1,671,560.66
122,205.80

74,160.00
265,225.00
1,757,500.00
19,456.28
12,688,020.70
135,218,985.98
2,100,000.00
137,318,985.98
15,600,000.00
121,718,985.98
42,601,645.09
79,117,340.89

76,384.80
273,181.75
1,757,500.00
19,456.28
12,761,682.22
164,035,790.95
4,900,000.00
168,935,790.95
7,800,000.00
161,135,790.95
56,397,526.83
104,738,264.12

78,676.34
281,377.20
1,757,500.00
19,456.28
12,835,048.82
197,541,199.46
10,500,000.00
208,041,199.46
0.00
208,041,199.46
72,814,419.81
135,226,779.65

81,036.63
289,818.52
1,757,500.00
19,456.28
12,910,240.72
236,622,428.90
24,500,000.00
261,122,428.90
0.00
261,122,428.90
91,392,850.12
169,729,578.79

Item

Period 1

Sales
Expenses
_________
_________
_________
_________
Add: beg balance
Ending cash balance

Period 2

Period 3

Cash Flow from Operating Activities

(Inc.) Dec. in Prepaid Insurance
Net Cash Provided by (used in) Operating Activities
Cash Flow from Investing Activities
Purchased of Fixed Assets
Payments for Organization/Pre-Operating Cost
Net Cash Flow Provided by (used in) Investing Activities
Cash Flow from Financing Activities
Proceeds from Issuance of Stocks
Proceeds from Bank Loan
Net Cash Provided by (used in) Financing Activities
Net Increase (Decrease) in Cash
Cash Balance, Beg.
Cash Balance, End.

(2,396,457.43)
(2,396,457.43)

(420,587,622.00)
(9,551,729.00)
(430,139,351.00)

300,000,000.00
150,000,000.00
450,000,000.00
17,464,191.57
0.00
17,464,191.57

PARTICULAR
CASH FLOWS:
Operational Inflows:
Sales
Adjustment for receivables:
Beginning
Ending
Net inflow from sales
Non-operational inflows:
Loan Proceeds
Paid-up capital
Total non- operational inflows
Total Cash Inflows
Cash Outflows:
Cash Operating Expenses
Adjustment for accounts payable:
Beginning
Ending
Build-up of inventories
Total Operating Outflow
Non-operating outflow
Debt servicing:
Principal
Interest
Fixed Asset acquisitions:
Land & land improvements
Building
Machinery & equipment
Delivery of equity
Office equipment
Pre-operating expenses
Sales tax
Dividends
Total non-operating outflow
Total cash outflow
Net cash inflow/ (outflow)
ADD: Beginning cash balance

Y1

Y2

Y3

Y4

Y5

1, 700, 000.00

2, 924, 000.00

3, 522, 400.00

3, 672, 000.00

3, 882, 800.00

0.00
(300, 000.00)
1, 400, 000.00

300, 000.00
(497, 000.00)
2, 727, 000.00

497, 000.00
(598, 800.00)
3, 420, 600.00

598, 800.00
(624, 200.00)
3, 646, 600.00

624, 200.00
(660, 000.00)
3, 847, 000.00

200, 000.00
100, 000.00
300, 000.00
1, 700, 000.00

0.00
0.00
0.00
2, 727, 000.00

0.00
0.00
0.00
3, 420, 600.00

0.00
0.00
0.00
3, 646, 600.00

0.00
0.00
0.00
3, 847, 000.00

1, 197, 500.00

2, 093, 100.00

2, 508, 200.00

2, 661, 300.00

2, 846, 400.00

0.00
(105, 700.00)
54, 500.00
1, 146, 300.00

105, 700.00
(108, 200)
0.00
2, 090, 600.00
2, 532, 800.00

0.00
108, 200.00
(133, 600.00)
50, 000.00
2, 661, 500.00

0.00
133, 600.00
(133, 400.00)
0.00
2, 842, 900.00

0.00
133, 400.00
(136, 900.00)
0.00

200, 000.00
18, 000.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00
10, 000.00
85, 000.00
0.00
548, 000.00
1, 694, 300.00
5, 700.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
146, 200.00
250, 000.00
396, 200.00
2, 486, 800.00
240, 200.00
5, 700.00

0.00
0.00
0.00
0.00
0.00
0.00
176, 100.00
634, 700.00
810, 800.00
3, 343, 600.00
77, 000.00
245, 900.00

0.00
0.00
0.00
0.00
0.00
0.00
183, 600.00
800, 000.00
983, 600.00
3, 645, 100.00
1, 500.00
322, 900.00

0.00
0.00
0.00
0.00
0.00
0.00
194, 100.00
700, 000.00
894, 100.00
3, 737, 000.00
110, 000.00
324, 400.00

Projected Cash Flow Statement

For the years ended December 31,2008-2012

Cash Flow from Operating Activities

Net Income
Adjustments to Reconcille Net Income
Organization Cost
Amortization of Software
Depreciation Expense
(Inc.) Dec. Accounts Receivable
(Inc.) Dec. Inventory
(Inc.) Dec. in Factory Overhead Supplies
(Inc.) Dec. Unused Office Supplies
(Inc.) Dec. in Prepaid Insurance
Inc. (Dec.) Accounts Payable
Inc. (Dec.) SSS Contribution Payable
Inc. (Dec.) Pag-Ibig Contribution Payable
Inc. (Dec.) Philhelth Contribution Payable
Inc. (Dec.) Witholding Tax Contribution Payable
Inc. (Dec.)Utilities Payable
Inc. (Dec.) Vat Payable
Inc. (Dec.) Interest Payable
Inc. (Dec.) Income Tax Payable
Net Cash Provided by (used in) Operating Activities
Cash Flow from Investing Activities
Purchased of Fixed Assets
Investment in Bonds
Additional Investment on tank
Net Cash Flow Provided by (used in) Investing Activities
Cash Flow from Financing Activities
Proceeds from Issuance of Stocks
Proceeds from Bank Loan
Payments Of Dividends
Payment of Bank Loan
Net Cash Provided by (used in) Financing Activities
Net Increase (Decrease) in Cash
Cash Balance, Beg.
Cash Balance, End.

2011

2012

50,269,303.42

79,117,340.89

9,551,729.00
30,000.00
19,245,640.67
(2,004,897.46)
(1,190,113.46)
(49,224.00)
(23,112.00)
(71,893.74)
386,123.00
82,776.32
17,000.00
23,025.00
126,757.82
1,760,390.00
577,409.46
12,000,000.00
6,920,802.86
97,651,716.89

2013
104,738,264.12

2014
135,226,779.65

2015
169,729,578.79

30000
19,245,640.67
(334,145.84)
(192,540.91)
(1,476.00)
(4,160.16)
(74,050.55)
7,777.00

30000
19,245,640.67
(381,293.93)
(171,642.97)
(1,464.00)
(1,338.18)
(76,272.06)
11,756.00

30000
19,245,640.67
(434,592.51)
(193,190.47)
(1,464.00)
(936.31)
(78,560.00)
11,756.00

30000
19,245,640.67
(494,871.93)
(201,069.07)
(1,524.00)
(898.10)
(80,917.01)
11,761.00

52,818.57
96,232.73
(4,200,000.00)
3,883,389.66
97,626,826.05

54,396.26
109,813.00
(3,900,000.00)
3,448,970.43
123,106,829.33

56,029.39
125,164.58
(3,900,000.00)
4,104,223.25
154,190,850.25

57,709.02
142,521.48
4,644,607.58
193,082,538.42

(15,000,000.00) (20,000,000.00)
(540,000.00)
(556,200.00)
(15,540,000.00) (20,556,200.00)

(40,000,000.00) (100,000,000.00) (135,000,000.00)

(572,886.00)
(590,072.58)
(607,774.76)
(40,572,886.00) (100,590,072.58) (135,607,774.76)

0.00 (12,500,000.00)
(70,000,000.00) (65,000,000.00)
(70,000,000.00) (77,500,000.00)
12,111,716.89
(429,373.95)
17,464,191.57
29,575,908.46
29,575,908.46
29,146,534.51

(17,500,000.00)
(65,000,000.00)
(82,500,000.00)
33,943.33
29,146,534.51
29,180,477.85

(45,000,000.00)
0.00
(45,000,000.00)
8,600,777.67
29,180,477.85
37,781,255.51

(57,500,000.00)
0.00
(57,500,000.00)
(25,236.34)
37,781,255.51
37,756,019.18

Item

Assets
Cash
Account receivables
Inventory
Machinery equipment
Furniture and fixture
Building
Liabilities
Accounts payable
Bank loans
Business Capital
Total Assets = Total Liabilities + Capital

Assets:
Current Assets
Cash
Prepaid Insurance
Total Current Assets
Non-Current Assets
Property Plant and Equipment
Organization Cost
Total Non-Current Assets
Total Assets

Liabilities and Stockholders Equity:

Non-Current Liability
Bank Loan
Stockholders' Equity
Common Stock, 100par, 5,000,000 shares authorized
Total Liabilities and Stockholders' Equity

20,464,191.57
2,396,457.43
22,860,649.00

420,587,622.00
6,551,729.00
427,139,351.00
450,000,000.00

200,000,000.00
250,000,000.00
450,000,000.00

SAMPLE. PROJECTED BALANCE SHEET

PARTICULAR

Y1

Y2

Y3

Y4

Y5

ASSETS

Current Assets:
Cash on Hand
Accounts receivables
LESS: Allowances for bad debts
Inventories:
Raw materials
Finished goods
Goods in process

5, 700.00
300, 000.00
(15, 000.00)
54, 000.00
0.00
0.00

245, 900.00
497, 000.00
(25, 000.00)
54, 000.00
0.00
0.00

322, 900.00
598, 800.00
(30, 000.00)
104, 500.00
0.00
0.00

324, 400.00
624, 200.00
(32, 000.00)
104, 500.00
0.00
0.00

434, 400
660, 000.00
(34, 000.00)
104, 500.00
0.00
0.00

TOTAL CURRENT ASSETS

344, 700.00

771, 900.00

996, 200.00

1, 021, 100.00

1, 164, 800.00

85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00

85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00

85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00

85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00

85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00

235, 000.00

235, 000.00

235, 000.00

235, 000.00

235, 000.00

(8, 800.00)

(23, 800.00)

(38, 000.00)

(53, 800.00)

(68, 800.00)

226, 200.00

211, 100.00

196, 200.00

181, 200.00

166, 200.00

8, 000.00

6, 000.00

4, 000.00

2, 000.0

0.00

578, 900.00

989, 100.00

1, 196, 400.00

1, 204, 300.00

1, 331, 000.00

Fixed Assets:
Land & land improvements
Buildings
Machinery & equipment
Delivery equity
Office equipment
Total fixed assets

LESS: Accumulated depreciation

Net book value
Deferred charges
Organization & pre-operating expenses
TOTAL ASSETS

LIABILITIES & OWNERS EQUITY

Current Liabilities:
Accounts payable
Income tax payable

0.00
105, 700.00

0.00
108, 200.00

0.00
133, 600.00

0.00
133, 400.00

0.00
136, 900.00

Total current liabilities

105, 700.00

108, 200.00

133, 600.00

133, 400.00

136, 900.00

Total Liabilities

105, 700.00

108, 200.00

133, 600.00

133, 400.00

136, 900.00

OWNERS EQUITY
Contributed Capital

100, 000.00

Retained Earnings:
Balance, beginning

0.00

373, 200.00

780, 900.00

962, 800.00

970, 900.00

Net Income before the year

458, 200.00

803, 900.00

992, 700.00

991, 700.00

1, 017, 300.00

Dividends paid

0.00

(250, 000.)

(634, 700.00)

(800, 000.00)

(7000,00.00)

Sales tax

(85, 000.00)

(146, 200.00)

(176, 100.00)

(183, 600.00)

(194, 100.00)

Total Owners Equity

473, 200.00

800, 900.00

1, 062, 800.00

1, 070, 900.00

1, 194, 100.00

989, 100.00

1, 196, 400.00

1, 204, 300.00

1, 331, 000.00

Long-term liability

TOTAL LIABILITIES & OWNERS EQUITY

578, 900.00

100, 000.00

100, 000.00

100, 000.00

100, 000.00

Projected Balance Sheet

As of December 31,2008-2012
Assets
Current Assets
Cash
Accounts Receivable (Schedule 1)
Inventory (Schedule 2)
Factory Overhead Supplies (Schedule 3)
Unused Office Supplies (Schedule 4)
Prepaid Insurance (Schedule 5)
Total Current Assets
Non-Current Assets
Property Plant and Equipment (Schedule 6)
Investment in Bonds
Total Non-Current Assets
Total Assets

Liabilities and Stockholders Equity

Current Liabilities
Accounts Payable (Schedule 3)
SSS Contribution Payable (Schedule 7)
Pag-Ibig Contribution Payable (Schedule 7)
Philhealth Contribution Payable (Schedule 7)
Witholding Tax Contribution Payable (Schedule 7)
Utilities Payable (Schedule 8)
VAT Payable (Schedule 9)
Interest Payable (Schedule 10)
Income Tax Payable (Schedule 14)
Total Current Liabilities
Non-Current Liability
Bank Loan (Schedule 10)
Total Liabilities
Stockholders' Equity
Common Stock, 100par, 5,000,000 shares authorized
Retained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

2011

2012

2013

2014

2015

29,575,908.46
2,004,897.46
1,190,113.46
49,224.00
23,112.00
2,468,351.17
35,311,606.55

29,146,534.51
2,339,043.30
1,382,654.37
50,700.00
27,272.16
2,542,401.72
35,488,606.06

29,180,477.85
2,720,337.23
1,554,297.34
52,164.00
28,610.34
2,618,673.78
36,154,560.54

37,781,255.51
3,154,929.74
1,747,487.81
53,628.00
29,546.66
2,697,233.78
45,464,081.50

37,756,019.18
3,649,801.67
1,948,556.88
55,152.00
30,444.76
2,778,150.79
46,218,125.28

401,851,981.33
15,000,000.00
416,851,981.33
452,163,587.88

383,132,540.66
35,000,000.00
418,132,540.66
453,621,146.72

364,429,782.99
75,000,000.00
439,429,782.99
475,584,346.53

345,744,214.90
175,000,000.00
520,744,214.90
566,208,299.39

327,076,348.99
310,000,000.00
637,076,348.99
683,294,477.26

386,123.00
82,776.32
17,000.00
23,025.00
126,757.82
1,760,390.00
577,409.46
12,000,000.00
6,920,802.86
21,894,284.46

393,900.00
82,776.32
17,000.00
23,025.00
126,757.82
1,813,208.57
673,642.19
7,800,000.00
10,804,192.52
21,734,502.41

405,656.00
82,776.32
17,000.00
23,025.00
126,757.82
1,867,604.82
783,455.19
3,900,000.00
14,253,162.96
21,459,438.11

417,412.00
82,776.32
17,000.00
23,025.00
126,757.82
1,923,634.22
908,619.77
0.00
18,357,386.20
21,856,611.32

429,173.00
82,776.32
17,000.00
23,025.00
126,757.82
1,981,343.24
1,051,141.25
0.00
23,001,993.78
26,713,210.40

130,000,000.00
151,894,284.46

65,000,000.00
86,734,502.41

0.00
21,459,438.11

0.00
21,856,611.32

0.00
26,713,210.40

250,000,000.00
50,269,303.42
300,269,303.42
452,163,587.88

250,000,000.00
116,886,644.31
366,886,644.31
453,621,146.72

250,000,000.00
204,124,908.42
454,124,908.42
475,584,346.53

250,000,000.00
294,351,688.07
544,351,688.07
566,208,299.39

250,000,000.00
406,581,266.86
656,581,266.86
683,294,477.26