Manufacturing Business

TOTAL PROJECT COST

Fixed Assets/ Capital Investments
Leashold Improvements
Machines & Equipment
Factory Vehicle
Furniture & Fixture
Sub-Total

25,000.00
250,000.00
50,000.00
23,000.00
348,000.00
-

Pre-Operating & Operating Expenses

Permits and licenses
Advance rental & deposits
Purchases - Raw Materials
Factory, selling & office supplies
Sub-Total

4,000.00
32,000.00
129,600.00
7,750.00
173,350.00

Total

521,350.00
521,350.00

TOTAL PROJECT COST

OR

Fixed Assets/ Capital Investments

Factory Building Improvements
Factory & Office Machines
Factory Vehicle
Factory, Selling & Office Equipment
Office & Selling Furniture and Fixtures

Pre-Operating Expenses
Permits and licenses
Advance rental & deposits
Purchases - Raw Materials
Factory, selling & office supplies

Total
Add: 10% contingency
TOTAL PROJECT COST

Manufacturing Business

TOTAL PROJECT COST

OR

25,000.00
250,000.00
50,000.00
23,000.00
348,000.00
4,000.00
32,000.00
129,600.00
7,750.00
869,350.00
86,935.00
956,285.00

Manufacturing Business
ABC MANUFACTURING
Projected Cash Flow Statement
Five-Year Period
Pre-Operating
CASH INFLOWS:
Capital, beginning
Net Sales
Collection of Receivables
Total
CASH OUTFLOWS:
Factory Bldg Improvements
Factory & Office Machines
Factory Vehicle
Factory & Office Equipment
Office Furniture and Fixtures
Purchases-Raw Materials
Permits and licenses
Advance rental & deposits
Supplies
Salaries and wages
SSS & Philhealth
Light
Water
Communications
Transportation-office
Delivery expenses
Repair & Maintenance
Income Tax
Withdrawals
Miscellaneous-office expenses
Total
NET CASH FLOW
Add: Cash balance, beginning
CASH BALANCE, END

25,000.00
250,000.00
50,000.00
23,000.00
348,000.00
129,600.00
4,000.00
32,000.00
7,750.00
869,350.00
(869,350.00)
(869,350.00)

Year 1

Year 2

Year 3

Year 4

1,466,325.00
1,466,325.00

1,770,587.44
162,925.00
1,933,512.44

2,049,070.05
196,731.94
2,245,801.99

2,366,888.09
227,674.45
2,594,562.54

2,280,400.00
200,000.00
28,250.00
480,000.00
35,958.00
84,000.00
14,400.00
21,600.00
18,000.00
30,000.00
20,000.00
12,000.00
3,224,608.00
(1,758,283.00)
(869,350.00)
(2,627,633.00)

2,640,500.00
10,000.00
264,000.00
39,600.00
480,000.00
35,958.00
92,400.00
15,840.00
23,760.00
19,800.00
33,000.00
21,000.00
20,000.00
12,000.00
3,707,858.00
(1,774,345.56)
(2,627,633.00)
(4,401,978.56)

2,904,525.00
11,000.00
290,400.00
43,560.00
528,000.00
39,553.80
101,640.00
17,424.00
26,136.00
21,780.00
36,300.00
23,100.00
(350,626.46)
20,000.00
12,000.00
3,724,792.34
(1,478,990.35)
(4,401,978.56)
(5,880,968.91)

3,194,951.25
12,100.00
319,440.00
47,916.00
528,000.00
39,553.80
111,804.00
19,166.40
28,749.60
23,958.00
39,930.00
25,410.00
(559,127.14)
20,000.00
12,000.00
3,863,851.91
(1,269,289.37)
(5,880,968.91)
(7,150,258.28)

Manufacturing Business
Notes:
1
2
3
4
5
6
7

Purchases-Raw Materials
Adavance rental & deposits
Supplies
Salaries and wages
SSS & Philhealth
Light, water, transportation
repair and maintenance

equivalent to 2 months stock (P 610,000 / 12 x 2 months)

2 months advance and 2 months deposit (P 20,000 per month)
total of factory, selling and administrative (see schedule for breakdown)
refer to schedule for breakdown
refer to schedule for breakdown
refer to schedule for breakdown
assumed at 2% of fixed assets (refer to schedule for breakdown)

Manufacturing Business

C MANUFACTURING
ed Cash Flow Statement
Five-Year Period
Year 5
2,733,766.88
262,987.57
2,996,754.45

3,514,418.81
13,310.00
351,384.00
52,707.60
580,800.00
43,509.18
122,984.40
21,083.04
31,624.56
26,353.80
43,923.00
27,951.00
(554,671.27)
20,000.00
12,000.00
4,307,378.12
(1,310,623.68)
(7,150,258.28)
(8,460,881.96)

Manufacturing Business

ABC MANUFACTURING
Statement of Cost of Goods Manufactured
Five-Year Period

Direct Materials
Direct Labor
Manufacturing Overhead
Rental
Supplies
SSS & Philhealth
Light
Water
Communications
Depreciation
Repair and Maintenance
Manufacturing Costs
Add:
Work-in-Process, beginning
Total Cost of Goods Placed in Process
Less:
Work-in-Process, ending
Cost of Goods Manufactured
Manufacturing Cost
Annual production in units
Unit Production Cost

Year 1

Year 2

Year 3

Year 4

Year 5

2,400,000.00
120,000.00

2,640,000.00
120,000.00

2,904,000.00
132,000.00

3,194,400.00
132,000.00

3,513,840.00
145,200.00

48,000.00
13,950.00
9,019.20
50,400.00
8,640.00
5,400.00
88,328.57
2,743,737.77
2,743,737.77
20,000.00
2,723,737.77

52,800.00
15,345.00
9,019.20
55,440.00
9,504.00
5,940.00
88,328.57
17,100.00
3,013,476.77
20,000.00
3,033,476.77
20,000.00
3,013,476.77

58,080.00
16,879.50
9,921.12
60,984.00
10,454.40
6,534.00
88,328.57
18,810.00
3,305,991.59
20,000.00
3,325,991.59
20,000.00
3,305,991.59

63,888.00
18,567.45
9,921.12
67,082.40
11,499.84
7,187.40
88,328.57
20,691.00
3,613,565.78
20,000.00
3,633,565.78
20,000.00
3,613,565.78

70,276.80
20,424.20
10,913.23
73,790.64
12,649.82
7,906.14
88,328.57
22,760.10
3,966,089.50
20,000.00
3,986,089.50
20,000.00
3,966,089.50

2,743,737.77
3,500.00

3,013,476.77
3,850.00

3,305,991.59
4,235.00

3,613,565.78
4,658.50

3,966,089.50
5,124.35

783.93

782.72

780.64

775.69

773.97

Note/s:
1 There is no work-in-process beginning in year 1.
2 Work-in-process ending is estimated at P 20,000 every year.

Manufacturing Business
ABC MANUFACTURING
Projected Income Statement
Five-Year Period

Revenues
Sales
less: Sales Returns & Allow.
Net Sales
Cost of Sales
Finished Goods, beginning
Add: Cost of Goods Manufactured
Cost of goods available for sale
Less: Finished Goods, ending
Gross Income
Operating Expenses
Selling & Administrattive Expenses
Permits and licenses
Rental
Supplies
Salaries and wages
SSS & Philhealth
Light
Water
Communications
Transportation-office
Delivery expenses
Bad Debts
Depreciation
Repair and Maintenance
Miscellaneous-office expenses
Total
Net Income before Tax
Less: Income Tax
NET INCOME

Notes:
1 Sales and Sales returns
2 finished goods inventory &
cost of goods manufactured
3 operating expenses

Year 1
1,662,500.00
33,250.00
1,629,250.00

Year 2

100%

2,007,468.75
40,149.38
1,967,319.38

2,723,737.77
2,723,737.77
137,186.89
2,586,550.88
(957,300.88)

0%
167%
167%
8%
159%
-59%

4,000.00
48,000.00
79,050.00
360,000.00
26,938.80
33,600.00
5,760.00
16,200.00
18,000.00
30,000.00
8,146.25
23,464.29
12,000.00
665,159.34
(1,622,460.22)
(1,622,460.22)

0%
3%
5%
22%
2%
2%
0%
1%
1%
2%
1%
1%
0%
1%
41%
-100%
0%
-100%

refer to schedule
refer to schedule
refer to schedule

Year 3

100%

2,323,208.67
46,464.17
2,276,744.50

137,186.89
3,013,476.77
3,150,663.66
157,522.65
2,993,141.01
(1,025,821.64)

7%
153%
160%
8%
152%
-52%

10,000.00
52,800.00
86,955.00
360,000.00
26,938.80
36,960.00
6,336.00
17,820.00
19,800.00
33,000.00
9,836.60
23,464.29
3,900.00
12,000.00
699,810.68
(1,725,632.32)
(350,626.46)
(1,375,005.85)

1%
3%
4%
18%
1%
2%
0%
1%
1%
2%
1%
1%
0%
1%
36%
-88%
-18%
-70%

Year 4

100%

2,683,546.58
53,670.93
2,629,875.65

100%

157,522.65
3,305,991.59
3,463,514.24
173,154.72
3,290,359.52
(1,013,615.02)

7%
145%
152%
8%
145%
-45%

173,154.72
3,613,565.78
3,786,720.51
189,281.21
3,597,439.30
(967,563.64)

7%
137%
144%
7%
137%
-37%

11,000.00
58,080.00
95,650.50
396,000.00
29,632.68
40,656.00
6,969.60
19,602.00
21,780.00
36,300.00
11,383.72
23,464.29
4,290.00
12,000.00
766,808.79
(1,780,423.81)
(559,127.14)
(1,221,296.66)

0%
3%
4%
17%
1%
2%
0%
1%
1%
2%
1%
1%
0%
1%
34%
-78%
-25%
-54%

12,100.00
63,888.00
105,215.55
396,000.00
29,632.68
44,721.60
7,666.56
21,562.20
23,958.00
39,930.00
13,149.38
23,464.29
4,719.00
12,000.00
798,007.25
(1,765,570.90)
(554,671.27)
(1,210,899.63)

0%
2%
4%
15%
1%
2%
0%
1%
1%
2%
1%
1%
0%
0%
30%
-67%
-21%
-46%

Manufacturing Business

MANUFACTURING
d Income Statement
ve-Year Period
Year 5

3,099,508.94
61,990.18
3,037,518.76

100%

189,281.21
3,966,089.50
4,155,370.71
207,747.51
3,947,623.21
(910,104.45)

6%
131%
137%
7%
130%
-30%

13,310.00
70,276.80
115,737.11
435,600.00
32,595.95
49,193.76
8,433.22
23,718.42
26,353.80
43,923.00
15,187.59
23,464.29
5,190.90
12,000.00
874,984.83
(1,785,089.28)
(606,228.57)
(1,178,860.71)

0%
2%
4%
14%
1%
2%
0%
1%
1%
1%
1%
1%
0%
0%
29%
-59%
-20%
-39%

Manufacturing Business
ABC MANUFACTURING
Projected Income Statement
Five-Year Period

Revenues
Sales
less: Sales Returns & Allow.
Net Sales
Cost of Sales
Finished Goods, beginning
Add: Cost of Goods Manufactured
Cost of goods available for sale
Less: Finished Goods, ending
Gross Income
Operating Expenses
Selling & Administrattive Expenses
Permits and licenses
Rental
Supplies
Salaries and wages
SSS & Philhealth
Light
Water
Communications
Transportation-office
Delivery expenses
Bad Debts
Depreciation
Repair and Maintenance
Miscellaneous-office expenses
Total
Net Income before Tax
Less: Income Tax
NET INCOME

Notes:
1 Sales and Sales returns
2 finished goods inventory &
cost of goods manufactured
3 operating expenses

Year 1

Year 2

Year 3

Year 4

Year 5

1,662,500.00
33,250.00
1,629,250.00

2,007,468.75
40,149.38
1,967,319.38

2,323,208.67
46,464.17
2,276,744.50

2,683,546.58
53,670.93
2,629,875.65

3,099,508.94
61,990.18
3,037,518.76

2,723,737.77
2,723,737.77
137,186.89
2,586,550.88
(957,300.88)

137,186.89
3,013,476.77
3,150,663.66
157,522.65
2,993,141.01
(1,025,821.64)

157,522.65
3,305,991.59
3,463,514.24
173,154.72
3,290,359.52
(1,013,615.02)

173,154.72
3,613,565.78
3,786,720.51
189,281.21
3,597,439.30
(967,563.64)

189,281.21
3,966,089.50
4,155,370.71
207,747.51
3,947,623.21
(910,104.45)

4,000.00
48,000.00
79,050.00
360,000.00
26,938.80
33,600.00
5,760.00
16,200.00
18,000.00
30,000.00
8,146.25
23,464.29
12,000.00
665,159.34
(1,622,460.22)
(1,622,460.22)

10,000.00
52,800.00
86,955.00
360,000.00
26,938.80
36,960.00
6,336.00
17,820.00
19,800.00
33,000.00
9,836.60
23,464.29
3,900.00
12,000.00
699,810.68
(1,725,632.32)
(350,626.46)
(1,375,005.85)

11,000.00
58,080.00
95,650.50
396,000.00
29,632.68
40,656.00
6,969.60
19,602.00
21,780.00
36,300.00
11,383.72
23,464.29
4,290.00
12,000.00
766,808.79
(1,780,423.81)
(559,127.14)
(1,221,296.66)

12,100.00
63,888.00
105,215.55
396,000.00
29,632.68
44,721.60
7,666.56
21,562.20
23,958.00
39,930.00
13,149.38
23,464.29
4,719.00
12,000.00
798,007.25
(1,765,570.90)
(554,671.27)
(1,210,899.63)

13,310.00
70,276.80
115,737.11
435,600.00
32,595.95
49,193.76
8,433.22
23,718.42
26,353.80
43,923.00
15,187.59
23,464.29
5,190.90
12,000.00
874,984.83
(1,785,089.28)
(606,228.57)
(1,178,860.71)

refer to schedule
refer to schedule
refer to schedule

ABC MANUFACTURING
Projected Balance Sheet
Five-Year Period
Pre-Operating
ASSETS
CURRENT
Cash
Accounts Receivable
Less: Allowance for Bad Debts
Net Receivable
Raw Materials Inventory
Work-in-Process Inventory
Finished Goods Inventory
Prepaid Expenses
Total
NON-CURRENT
Building Improvements
less: Accumulated Depreciation

(869,350.00)
129,600.00
43,750.00
(696,000.00)

Year 1

(2,627,633.00)
162,925.00
8,146.25
154,778.75
10,000.00
20,000.00
137,186.89
16,000.00
(2,289,667.36)

Year 2

(4,401,978.56)
196,731.94
17,982.85
178,749.09
10,500.00
20,000.00
157,522.65
16,000.00
(4,019,206.82)

Year 3

Year 4

(5,880,968.91)
227,674.45
29,366.57
198,307.88
11,025.00
20,000.00
173,154.72
16,000.00
(5,462,481.31)

(7,150,258.28)
262,987.57
42,515.95
220,471.62
11,576.25
20,000.00
189,281.21
16,000.00
(6,692,929.21)

25,000.00
25,000.00

25,000.00
900.00
24,100.00

25,000.00
1,800.00
23,200.00

25,000.00
2,700.00
22,300.00

25,000.00
3,600.00
21,400.00

Machines
less: Accumulated Depreciation

250,000.00
250,000.00

250,000.00
38,571.43
211,428.57

250,000.00
77,142.86
172,857.14

250,000.00
115,714.29
134,285.71

250,000.00
154,285.71
95,714.29

Transportation Vehicle
less: Accumulated Depreciation

50,000.00
50,000.00

50,000.00
45,000.00
5,000.00

50,000.00
90,000.00
(40,000.00)

50,000.00
135,000.00
(85,000.00)

50,000.00
180,000.00
(130,000.00)

Equipment
less: Accumulated Depreciation

23,000.00
23,000.00

23,000.00
16,071.43
6,928.57

23,000.00
32,142.86
(9,142.86)

23,000.00
48,214.29
(25,214.29)

23,000.00
64,285.71
(41,285.71)

Furniture and Fixture

less: Accumulated Depreciation

348,000.00
348,000.00

348,000.00
11,250.00
336,750.00

348,000.00
22,500.00
325,500.00

348,000.00
33,750.00
314,250.00

348,000.00
45,000.00
303,000.00

Total

696,000.00

584,207.14

472,414.29

360,621.43

248,828.57

TOTAL ASSETS

(1,705,460.22)

(3,546,792.54)

(5,101,859.88)

(6,444,100.64)

LIABILITIES AND CAPITAL

Manufacturing Business

LIABILITIES
Income Tax Payable

CAPITAL
ABC Capital, beginning
Add: Net Income
Total
Less: Withdrawals

TOTAL LIABILITIES AND CAPITAL

(350,626.46)
(350,626.46)

(559,127.14)
(559,127.14)

(554,671.27)
(554,671.27)

956,285.00
956,285.00
956,285.00

956,285.00
(1,622,460.22)
(666,175.22)
20,000.00
(686,175.22)

(666,175.22)
(1,375,005.85)
(2,041,181.07)
40,000.00
(2,081,181.07)

(2,041,181.07)
(1,221,296.66)
(3,262,477.74)
60,000.00
(3,322,477.74)

(3,262,477.74)
(1,210,899.63)
(4,473,377.37)
80,000.00
(4,553,377.37)

956,285.00

(686,175.22)

(2,431,807.54)

(3,881,604.88)

(5,108,048.64)

Manufacturing Business

ABC MANUFACTURING
Projected Balance Sheet
Five-Year Period
Year 5

(8,460,881.96)
303,751.88
57,703.54
246,048.33
12,155.06
20,000.00
207,747.51
16,000.00
(7,958,931.06)

25,000.00
4,500.00
20,500.00
250,000.00
192,857.14
57,142.86
50,000.00
225,000.00
(175,000.00)
23,000.00
80,357.14
(57,357.14)
348,000.00
56,250.00
291,750.00
137,035.71
(7,821,895.34)

Manufacturing Business

(606,228.57)
(606,228.57)

(4,473,377.37)
(1,178,860.71)
(5,652,238.07)
100,000.00
(5,752,238.07)
(6,358,466.64)

Manufacturing Business

Manufacturing Business

Schedule 1

Raw Materials Requirement

Yr 1
Daily requirements in unit ts (kilos)
Working days per year
Annual requirements
Increase per year (10%)
Total
Purchase price per sack
Cost of Raw Materials

Schedule 2

Yr 3

Yr 4

Yr 5

12,000.00
200.00
2,400,000.00

40.00
300.00
12,000.00
1,200.00
13,200.00
200.00
2,640,000.00

40.00
300.00
12,000.00
2,520.00
14,520.00
200.00
2,904,000.00

40.00
300.00
12,000.00
3,972.00
15,972.00
200.00
3,194,400.00

40.00
300.00
12,000.00
5,569.20
17,569.20
200.00
3,513,840.00

2,410,000.00
2,410,000.00
10,000.00
2,400,000.00

10,000.00
2,640,500.00
2,650,500.00
10,500.00
2,640,000.00

10,500.00
2,904,525.00
2,915,025.00
11,025.00
2,904,000.00

11,025.00
3,194,951.25
3,205,976.25
11,576.25
3,194,400.00

11,576.25
3,514,418.81
3,525,995.06
12,155.06
3,513,840.00

Raw Materials Inventory - Ending

Beginning balance
Add: Purchases
Total available for use
Less: RM, ending
Raw Materials Used

Schedule 3

40.00
300.00
12,000.00

Yr 2

Salaries and Wages

No.

Direct Labor
Worker 1
Worker 2

1
1
2

Mo. Salary

5,000.00
5,000.00
10,000.00

Annual
Salary

60,000.00
60,000.00
120,000.00

Employer
Share
(Philhealth)
750.00
750.00
1,500.00

Employer
Share
(SSS)
3,759.60
3,759.60
7,519.20

Total
Employer's
Share
4,509.60
4,509.60
9,019.20

Manufacturing Business

Salaries and Wages

Selling
Sales employee 1
Sales employee 2

General & Administrative

General Manager
Office employee 1
Office employee 2

Schedule 4

1
1
2

5,000.00
5,000.00
10,000.00

60,000.00
60,000.00
120,000.00

750.00
750.00
1,500.00

3,759.60
3,759.60
7,519.20

4,509.60
4,509.60
9,019.20

1
1
1
3

10,000.00
5,000.00
5,000.00
20,000.00

120,000.00
60,000.00
60,000.00
240,000.00

1,500.00
750.00
750.00
3,000.00

7,400.40
3,759.60
3,759.60
14,919.60

8,900.40
4,509.60
4,509.60
17,919.60

Distribution of Cost
Total
Expenses
(Year 1)
Permits and licenses
Rental
Supplies
Salaries and wages
SSS & Philhealth
Light
Water
Communications
Transportation-office
Delivery expenses
Miscellaneous-office expenses
Total

Schedule 5

Depreciation

4,000.00
96,000.00
93,000.00
480,000.00
35,958.00
84,000.00
14,400.00
21,600.00
18,000.00
30,000.00
12,000.00

Factory

48,000.00
13,950.00
120,000.00
9,019.20
50,400.00
8,640.00
5,400.00
255,409.20

Selling

###
24,000.00
46,500.00
120,000.00
9,019.20
16,800.00
2,880.00
10,800.00
###
30,000.00
###
259,999.20

General/
Administrative

4,000.00
24,000.00
32,550.00
240,000.00
17,919.60
16,800.00
2,880.00
5,400.00
18,000.00
12,000.00
373,549.60

Manufacturing Business

Cost

Factory
Bldg Improvements
Machine 1
Vehicle
Equipment 1
Total

Selling
Equipment 2
Furniture & Fixture 1

Office
Machine 2
Equipment 3
Furniture & Fixture 2

TOTAL
Schedule 6

Salvage
Value
(10% of cost)

Estimated
Useful
Life

Annual
Depreciation

25,000.00
250,000.00
500,000.00
80,000.00
855,000.00

2,500.00
25,000.00
50,000.00
8,000.00
85,500.00

22,500.00
225,000.00
450,000.00
72,000.00
769,500.00

25
7
10
7

900.00
32,142.86
45,000.00
10,285.71
88,328.57

20,000.00
30,000.00
50,000.00

2,000.00
3,000.00
5,000.00

18,000.00
27,000.00
45,000.00

7
8

2,571.43
3,375.00
5,946.43

50,000.00
25,000.00
70,000.00
145,000.00

5,000.00
2,500.00
7,000.00
14,500.00

45,000.00
22,500.00
63,000.00
130,500.00

7
7
8

6,428.57
3,214.29
7,875.00
17,517.86

1,050,000.00

105,000.00

945,000.00

111,792.86

Repair and Maintenance

Yr 1
Factory
Selling
Office

Schedule 7

Depreciable
Value

Yr 2
-

17,100.00
1,000.00
2,900.00
21,000.00

Yr 3
18,810.00
1,100.00
3,190.00
23,100.00

Yr 4
20,691.00
1,210.00
3,509.00
25,410.00

Yr 5
22,760.10
1,331.00
3,859.90
27,951.00

Sales & Finished Goods Inventory

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Manufacturing Business

Beginning balance
Add: Production units
Total
Less: Ending Balance
Finished Goods Sold
Selling Price
Sales
Finished Goods, ending (units)
x Cost per unit
Finished Goods, ending (amount)

3,500.00
3,500.00
175.00
3,325.00

175.00
3,850.00
4,025.00
201.25
3,823.75

201.25
4,235.00
4,436.25
221.81
4,214.44

221.81
4,658.50
4,880.31
244.02
4,636.30

244.02
5,124.35
5,368.37
268.42
5,099.95

500.00
1,662,500.00

525.00
2,007,468.75

551.25
2,323,208.67

578.81
2,683,546.58

607.75
3,099,508.94

175.00
783.93
137,186.89

201.25
782.72
157,522.65

221.81
780.64
173,154.72

244.02
775.69
189,281.21

268.42
773.97
207,747.51

175.00
783.93
137,186.89

201.25
782.72
157,522.65

221.81
780.64
173,154.72

244.02
775.69
189,281.21

Finished Goods, beg. (units)

x Cost per unit
Finished Goods, beg. (amount)

Schedule 8

Sales Breakdown
Yr 1
Sales
less: SR & A
Net Sales

Cash Sales
Balance to be collected
the following year
Schedule 9

Yr 2

Yr 3

Yr 4

Yr 5

100%
2%
98%

1,662,500.00
33,250.00
1,629,250.00

2,007,468.75
40,149.38
1,967,319.38

2,323,208.67
46,464.17
2,276,744.50

2,683,546.58
53,670.93
2,629,875.65

3,099,508.94
61,990.18
3,037,518.76

90%
10%

1,466,325.00
-

1,770,587.44
162,925.00

2,049,070.05
196,731.94

2,366,888.09
227,674.45

2,733,766.88
262,987.57

Bad Debts
Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Manufacturing Business

Net Sales
Cash Sales
Credit Sales (A/R)

1,629,250.00

1,967,319.38

2,276,744.50

2,629,875.65

3,037,518.76

90%
10%

1,466,325.00
162,925.00

1,770,587.44
196,731.94

2,049,070.05
227,674.45

2,366,888.09
262,987.57

2,733,766.88
303,751.88

5%

8,146.25

9,836.60

11,383.72

13,149.38

15,187.59

Bad Debts
(based on A/R)

Schedule 10 Allowance for Bad Debts

Yr 1
AFBD, beginning
Add: Bad Debts
Total
less: Recovered
AFBD, ending

8,146.25
8,146.25
8,146.25

Schedule 11 Permits and Licenses

DTI permit
Mayor's permit
BIR registration fees
Total

500.00
7,000.00
500.00
8,000.00

Schedule 12 Advance Rental and Deposits

Monthly Rental
Two months advance

20,000.00
40,000.00

Yr 2
8,146.25
9,836.60
17,982.85
###
17,982.85

Yr 3
17,982.85
11,383.72
29,366.57
29,366.57

Yr 4
29,366.57
13,149.38
42,515.95
###
42,515.95

Yr 5
42,515.95
15,187.59
57,703.54
57,703.54

Manufacturing Business

Two months deposit

Total advance rental & deposits

40,000.00
80,000.00

Schedule 13 Income Tax

Yr 1
Net Income before Tax
Tax on P 10,000 & less
Tax on P 70,000
Tax on P 250,000
Tax on P 500,000
Tax on excess
Total Tax Payable
Net Income after Tax

Yr 2

(1,622,460.22) (1,725,632.32)

Yr 3

Yr 4

Yr 5

(1,780,423.81) (1,765,570.90) (1,785,089.28)

8,500.00
50,000.00
(359,126.46)
(350,626.46)
(1,622,460.22) (1,375,005.85)

50,000.00

125,000.00
(609,127.14)
(604,671.27)
(731,228.57)
(559,127.14)
(554,671.27)
(606,228.57)
(1,221,296.66) (1,210,899.63) (1,178,860.71)

Schedule 14 Withdrawals (Drawings)

Withdrawal, beginning
Add: Withdrawal for the year
Withdrawals, ending

20,000.00
20,000.00

20,000.00
20,000.00
40,000.00

40,000.00
20,000.00
60,000.00

60,000.00
20,000.00
80,000.00

80,000.00
20,000.00
100,000.00

Manufacturing Business

ASSUMPTIONS UNDERLYING PROJECTIONS

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Total sales are composed of 90% cash sales and 10% credit sales.
Credit sales are collectible the following year.
Sales returns and allowances are estimated at 2% of total sales.
Bad debt are estimated at 5% of the total accounts receivable.
Raw materials (in units) will increase by 5% per year.
Finished Goods inventory is estimated at 5% of the total cost of goods
available for sale.
Permits and licenses will increase by 10% starting year 2.
Rentals, office supplies, electricity, water, communication and transportation
expenses will increase by 10% per year.
Salaries will increase by 10% every after 2 years.
Repair and maintenance will start in year 2. This will increase by 10% per year.
Depreciation is computed using the straight-line method.
Salvage value is estimated at 10% of the acquisition cost.
Miscellaneous expenses are estimated at P 12,000 per year.
Income tax for the year will be paid the following year.