CHAPTER VI

FINANCING ASPECT
Every business enterprise truly needs money in order to operate and
obtain profit in return. From starting up the business until its subsequent
operations entails the incessant outflow of funds. Without the availability of
money, the business will not be able to provide enough financial sources for
utilization.
Financing aspect includes the acquisition of monetary resources in the
preparation of the business for operation, the procurement of capital at the least
possible cost, the efficient management and deployment of the available capital.
This aspect would also help the management in decision making as to the most
practical and cheapest way of financing the business. It serves as a benchmark
on the effectiveness of the owner in the utilization of both human and non-human
resource for the success of the business. Proper planning and sufficient attention
must be afforded to the financing aspect to avoid and prevent inappropriate
usage of money that may lead to inadequacy of funds.
SOURCES OF FINANCING
The source of funding of any business firm depends on the nature of the
business. A key point in finance is the time value of money which states that
purchasing power of one unit of currency can vary over time. Finance aims to
price assets based on their risk level and their rate of return. In the event that the
owners does not have sufficient additional financial resources, then the firm can

F i n a n c i n g A s p e c t | 88

resort to borrowing from institutional lenders such as banks and financing

companies.
Since the proposed project is sole proprietorship. The implementer should
provide the initial capital which is estimated to be PHP 273,153.00 whether from
his own savings or borrowed from different sources. The succeeding pages are
the details of the estimated project costs.
ESTIMATED PROJECT COST
Pre-operating Expense:
Project Feasibility Cost
Permits and Licenses
Property and Equipment:
Kitchen Equipment
Leasehold Improvements
Furniture and Fixtures
Office Equipment
Delivery Equipment
Working Capital:
Direct Materials
Kitchen Tools
Office Supplies
Kitchen Supplies
Packaging Supplies
Cleaning Supplies
Salaries and Wages
Professional Fee
Utilities Expense
Advertising Expense
Rent Expense
Miscellaneous Expense
Total Estimated Project Cost

Note 1
Note 2

11,050.00
8,230.00

19,280.00

Note 3
Note 4
Note 5
Note 6
Note 7

19,650.00
31,251.00
23,800.00
18,995.00
85,000.00

178,696.00

Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Note 14
Note 15
Note 16
Note 17
Note 18
Note 19

13,464.00
8,966.00
2,823.00
655.00
8,515.00
2,370.00
11,700.00
3,000.00
5,399.00
2,155.00
16,000.00
2,100.00

NOTES TO ESTIMATED PROJECT COST

Note 1

75,177.00
273,153.00

F i n a n c i n g A s p e c t | 89

Project Feasibility Cost

Particulars
Printing Expense and Bookbinding
Photocopy
Food and Drinks
Transportation Expenses
Adviser and Panelists Honoraria
BFAD Testing
Experiment and Product Sampling Cost
Grammarly and Plagiarism Test
Snacks for Panelists
Total

Amount
2,000.00
50.00
500.00
500.00
4,000.00
1,500.00
2,000.00
200.00
300.00
11,050.00

Note 2
Permits and Licenses
Particulars
DTI Registration
BIR Registration
Business Permit
Barangay Clearance
Police Clearance
Mayors Permit
Sanitary Permit
Fire and Safety Clearance
Documentary Stamp for Leasing
BMBE Registration
BFAD Registration
LTO Registration
Business Tax Permit
Total

Amount
400.00
500.00
750.00
50.00
25.00
200.00
50.00
20.00
35.00
1,000.00
1,000.00
3,600.00
600.00
8,230.00
Note 3

Kitchen Equipment
Particulars
Refrigerator
Heavy Duty Stove
Kitchen Scales
Total

Qty
1
1
1

Unit
unit
unit
unit

Unit Cost
15,000.00
3,900.00
750.00

Total
15,000.00
3,900.00
750.00
19,650.00

F i n a n c i n g A s p e c t | 90

Note 4
Leasehold Improvement
Particulars
A. Division & Kitchen Area
Labor
Thick Plywood
Thick Plywood
Cement
Sand
2x2x8 Coco Lumber
2x2x6 Coco Lumber
Nails #3
Nails #2
Nails #1
Faucet
PVC Tube
PVC Tube (Connector)
Sink
B. Electricity
Fluorescent Lamp 40 W
Circuit Breaker
Labor (1)
Wire (Solid, Single) #12
Wire (Solid, Single) #10
Safety Switch
Fluorescent Lamp 20 W
C. Painting
Paint
Labor(2)
Paint Thinner
Aluminum Roller
Total

Qty

Unit

contractual
7
ply
3
ply
4
bag
3
bag
8
length
4
length
1
kg
1
kg
.5
kg
1
pc
8
meter
2
pc
1
pc

Unit Cost

Total

15,000.00
750.00
900.00
190.00
30.00
56.00
48.00
45.00
60.00
70.00
65.00
7.00
20.00
350.00

15,000.00
5,250.00
2,700.00
760.00
90.00
448.00
192.00
45.00
60.00
35.00
65.00
56.00
40.00
350.00

3
2
1
12
6
6
3

pc
pc
day
meter
meter
pc
pc

240.00
250.00
500.00
20.00
30.00
25.00
110.00

720.00
500.00
500.00
240.00
180.00
150.00
330.00

3
2
3
2

gallon
day
bottle
pc

400.00
320.00
120.00
55.00

1,600.00
1,280.00
360.00
110.00
31,251.00

Note 5
Furniture and Fixtures
Particulars
Office Table
Exhaust Fan

Qty
1
1

Unit
unit
unit

Unit Cost
2,500.00
1,100.00

Total
2,500.00
1,100.00

F i n a n c i n g A s p e c t | 91

Ceiling Fan
Steel Chair
Steel Table
Office Chair
Kitchen Cabinet
Shelves
Filing Cabinet
Total

3
2
2
1
1
2
1

unit
unit
unit
unit
unit
unit
unit

550.00
400.00
5,000.00
1,250.00
3,000.00
2,700.00
3,500.00

1,650.00
800.00
10,000.00
1,250.00
3,000.00
5,400.00
3,500.00
23,800.00

Unit Cost
16,000.00
2,995.00

Total
16,000.00
2.995.00
18,995.00

Note 6
Office Equipment
Particulars
Computer Set
Printer
Total

Qty
1
1

Unit
unit
unit

Note 7
Delivery Equipment
Particular
Multicab

Amount
85,000.00

Note 8
Raw Materials
Particulars
Watermelon Rind
Carrots
Ginger
Garlic
Onions
Red Bell Pepper
Refined Sugar
Cane Vinegar
Salt
Cooking Oil

Qty
13
65
2
2
2
2
65
33
7
2

Unit
sack
kg
kg
kg
kg
kg
kg
gallon
kg
gallon

Unit Cost
50.00
65.00
115.00
60.00
60.00
120.00
60.00
110.00
7.00
150.00

Total
650.00
4,225.00
230.00
120.00
120.00
240.00
3,900.00
3,630.00
49.00
300.00

F i n a n c i n g A s p e c t | 92

Total

13,464.00
Note 9
Kitchen Tools

Particulars
Wok
Stainless Steel Stock Pot
Chopping Board
Knife Holder
General Kitchen Knife
Grater
Peeler
Ladle
Measuring Cups
Measuring Spoons
Stainless Bowl
Tongs
Swiss Roll Tin
Wire Sieve
Basin (Small)
Plastic Container (tub)
LPG Tank
Total

Qty
1
1
2
1
2
2
2
2
1
1
3
1
3
1
3
2
1

Unit
unit
unit
pc
pc
pc
pc
pc
pc
set
set
pc
pair
pc
pc
pc
pc
unit

Unit Cost
2,000.00
1,500.00
144.00
70.00
54.00
65.00
50.00
130.00
100.00
75.00
360.00
125.00
190.00
110.00
150.00
250.00
1,500.00

Total
2,000.00
1,500.00
288.00
70.00
108.00
130.00
100.00
260.00
100.00
75.00
1,080.00
125.00
570.00
110.00
450.00
500.00
1,500.00
8,966.00

Unit Cost
300.00
250.00
155.00
120.00
75.00
75.00
120.00
10.00
95.00
30.00
38.00
475.00
5.00
5.00
25.00
35.00

Total
600.00
500.00
155.00
120.00
225.00
75.00
120.00
30.00
95.00
60.00
38.00
475.00
25.00
5.00
25.00
35.00

Note 10
Office Supplies
Particulars
Printer Ink (Colored)
Printer Ink (Black)
Long Bondpaper
Short Bondpaper
Office Receipt
Stapler
Puncher
Ballpen
Wall Clock
Record Book
File Clip
Calculator
Pencil
Pencil Sharpener
Liquid Eraser
Staple Wire

Qty
2
2
1
1
3
1
1
3
1
2
1
1
5
1
1
1

Unit
ctnus
ctnus
ream
ream
booklet
pc
pc
pc
unit
book
box
unit
pc
pc
pc
box

F i n a n c i n g A s p e c t | 93

Scotch Tape
Scissors
Expanded Envelop (Long)
Long-sized Folder
Short-sized Folder
Total

2
2
10
5
5

roll
pair
pc
pc
pc

20.00
20.00
12.00
5.00
3.00

40.00
40.00
120.00
25.00
15.00
2,823.00

Unit Cost
38.00
56.00
75.00
60.00
50.00
15.00
55.00

Total
114.00
56.00
75.00
60.00
150.00
90.00
110.00
655.00

Unit Cost
425.00
750.00
6.00
45.00
60.00

Total
4,675.00
750.00
90.00
1,800.00
1,200.00
8,515.00

Unit Cost
46.00
50.00
1.00
149.00
100.00
95.00
34.50
239.00
35.00

Total
92.00
100.00
24.00
149.00
200.00
285.00
138.00
717.00
70.00

Note 11
Kitchen Supplies
Particulars
Apron
Face Mask
Hair Net
Disposable Gloves
Kitchen Towel
Pot Holders
Apron Hanger
Total

Qty
3
1
1
1
3
6
2

Unit
pc
pack
pack
pack
pack
pc
pc

Note 12
Packaging Supplies
Particulars
8oz Bottle
Customized Cloth
Tie
Plastic Container
Sticker
Total

Qty
11
1/2
15
40
20

Unit
box
roll
meter
pc
pack

Note 13
Cleaning Supplies
Particulars
Broom
Dust pan
Rags
Floor Mop
Garbage Can
Garbage Bag
Foot Rags
Pail
Dipper

Qty
2
2
24
1
2
3
4
3
2

Unit
pc
pc
pc
pc
pack
pack
pc
pc
pc

F i n a n c i n g A s p e c t | 94

Dishwashing Soap
Sponge and Scrub
Hand Sanitizer
Total

2
6
1

bottle
pc
bottle

205.00
10.00
125.00

410.00
60.00
125.00
2,370.00

Days
13
13

Total
7,800.00
3,900.00
11,700.00

Note 14
Salaries and Wages
Particular
Production Worker
Delivery Man
Total

No.
2
1

Daily Rate
300.00
300.00

Note 15
Professional Fee
Particular
Bookkeeper

No.
1

Monthly Rate
3,000.00

Total
3,000.00

Note 16
Utilities Expense
Particulars
Gasoline
Light
Water
Communication
LPG
Total

Monthly Rate
1,700.00
1,300.00
1,200.00
1,350.00
700.00

No. of Mos.
1
1
1
1
1

Total
1,700.00
1,300.00
400.00
1,299.00
700.00
5,399.00

Note 17
Advertising Expense
Particulars
Flyers
Tarpaulin
Online Advertising
Sample
Total

Qty
1
2

Unit
ream
pc

Note 18
Rent Expense

Unit Cost
500.00
300.00

Total
500.00
700.00
455.00
500.00
2,155.00

F i n a n c i n g A s p e c t | 95

Particulars
Rent Expense
Security Deposit
Total

Total
8,000.00
8,000.00
16,00.00
Note 19
Miscellaneous Expense

Particular
Fire Extinguisher
Total

Qty
1

Unit
unit

Unit Cost
2,100.00

Total
2,100.00
2,100.00