EXECUTIVE SUMMARY

ALBAY FOUNTAINBLUE, INC., Hotel and Banquet Hall is designed as a 3-star hotel in
the Bicol Region, particularly located at Daraga, Albay. It is expected to accommodate the
influx of both local and foreign tourists in Albay and the neighboring provinces of Camarines
Sur, Sorsogon and the other provinces in the Bicol Region, including Camarines Norte,
Masbate and Catanduanes. With the soon completion and operation of Albay (Alobo)
International Airport in the next year or two, a brighter and positive economic outlook is
expected to flourish in the region.

The project location is relatively near the Albay (Alobo) International Airport; 7 kilometers
from the business center of Daraga, Albay; 9 kilometers from the business center of Legazpi
City; 52 kilometers from Sorsogon and 97 kilometers from Naga City, Camarines Sur.

The basic sources of revenue of the Company is expected to come from hotel functions and
food services. Other revenue generating activities of the project come from incidental facilities
including, but not limited to, travel and tours, souvenir shops, laundry shop and gym.

The basic sources of revenue of the Company is expected to come from hotel functions and
food services. Other revenue generating activities of the project come from incidental facilities
including, but not limited to, travel and tours, souvenir shops, laundry shop and gym.

The Company will be operating as a hotel and banquet hall will also be offering food and
catering services to accommodate social functions such as conferences, conventions, weddings,
birthdays and others.

The hotel will included Two (2) buildings: the Main Building and the Annex Building.

Total project cost is P 100,000,000.00 inclusive of building and other hotel facilities,
machineries, furniture and fixture and transport equipment

Initial hotel rates offered are as follows:

NUMBER OF
ROOM TYPE ROOMS RATES PER
DAY
Standard Single 6 1,500.00
Standard Double
2 Single Bed 8 2,300.00
1 Double Bed 33 2,300.00
Junior De Luxe 10 2,600.00
De Luxe 16 3,100.00
Executive 6 3,800.00
PWD 1 1,000.00
Additional person without bed 600.00
Additional person with extra bed 900.00
Projected annual gross receipts estimated at 100% occupancy amounted to P
72,972,000.00 or monthly gross receipts of P 6,081,000.00 from hotel operations only.

1
Other projected receipts and revenue not included in this projection. Other sources of revenue
/ receipts is expected from bar and restaurant operations and the use of hotel facilities such as,
but not limited to, caterings, meetings, seminars, conferences, tours, souvenir shops, laundry
services, travel and tours, gym and pool, and the spa wellness center.

Projected occupancy rate for the first 5 years is as follows:

Projected Revenue

First Year 50%

Second Year 60%
Third Year 68%
Fourth Year 74%
Fifth Year 80%

DESCRIPTION OF PRODUCT AND SERVICES

2
Albay Fountain Blue, Inc. Hotel and Banquet Hall will be operating as a hotel, banquet hall,
and food and catering services to accommodate social functions including, but not limited to,
conferences, conventions, weddings, birthdays and others occasions. The quality of service to
be offered is comparable, if not superior, with existing nearby hotels in the area.

The hotel will included Two (2) buildings: the Main Building and the Annex Building.

The Main Hotel Building

The Main Hotel Building is located at the left side part of the lot occupying 627 square meters,
consisting of 8 floors, with a total floor area of 3,212.51 square meters.

The following are the amenities / services to be included in the main building:

The Travel and Tours Office will cater to the needs of the hotel guests and walk-in customers,
whether local and foreign, with regard to their travel needs, van rentals, flight booking and tour
packages.

The Souvenir Store will exhibit and sell souvenir items, gifts, and accessories including their
special packaging service, “specialty pasalubongs”. This will mainly feature Bicol’s famous
delicacies and products.

The Laundry Shop will cater to guests and non-guests.

The Gym will be free for use to the guests, but is also open to outside enthusiasts who are
interested to avail of the membership.

The Pool is located at the second (2nd) floor. It is free for use to the guests. Rates to be charged
for non-guests are: 200 for kids and 250 for adults.

The Bar and Restaurant is located at the poolside area. It also serves simple menu, pica-pica
and drinks.

The Function Hall, located at the roof top area. It can accommodate one hundred (100)
persons. It is also ideal for seminars, meetings and conferences.

The Spa Wellness Center is welcome to both guests and non-guests.

The Hotel Rooms consists of the following categories:

Category Number of Rooms

Standard Single Rooms 6 Rooms

Standard Double Rooms
Single Beds 8 Rooms
Double Beds 33 Rooms
Junior De Luxe Rooms 10 Rooms
De Luxe Rooms 16 Rooms
Executive Rooms 6 Rooms
PWD 1 Room

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 TOTAL ROOMS 80 ROOMS

Initial hotel rates offered are as follows:

NUMBER OF
ROOM TYPE ROOMS RATES PER
DAY
Standard Single 6 1,500.00
Standard Double
2 Single Bed 8 2,300.00
1 Double Bed 33 2,300.00
Junior De Luxe 10 2,600.00
De Luxe 16 3,100.00
Executive 6 3,800.00
PWD 1 1,000.00
Additional person without bed 600.00
Additional person with extra bed 900.00

Rates are comparably competitive with existing nearby hotels in the area.

Projected annual gross receipts estimated at 100% occupancy amounted to P

72,972,000.00 or monthly gross receipts of P 6,081,000.00 from hotel operations only.

Other projected receipts and revenue not included in this projection. Other sources of revenue
/ receipts is expected from bar and restaurant operations and the use of hotel facilities such as,
but not limited to, caterings, meetings, seminars, conferences, tours, souvenir shops, laundry
services, travel and tours, gym and pool, and the spa wellness center.

The Hotel Annex Building

The Hotel Annex Building is located at the right side part of the lot occupying 623.20 square
meters, consisting of 2 floors, with a total floor area of 1,387.78 square meters. The Annex
Building mainly consists of halls and restaurants.

The following are located at the Annex Building:

The Guadalupe and Antigua Hall is located at the second floor. It can accommodate a capacity
of four hundred (400) persons.

The Saint Kits and Martinique Hall is located at the ground floor. It has the capacity to
accommodate up to two hundred-fifty (250) persons.

The Aruba Hall is also located at the second floor. It is ideal for board or executive meetings.
It can accommodate up to twenty (20) persons.

Other amenities included in this building are the following:

The Time Square Coffee Shop offers variety of cakes, coffee, smoothies and other drinks.

The Red Sunset Dining serves international cuisine specializing in steaks

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The Red Sunset Bar offers a taste of imported wines, cocktails and mixed drinks.

The Chicha Convenience Store offers fast and simple meals such as tapsilog and other on the
go dishes.

TECHNICAL CONSIDERATIONS

5
The technical requirements and facilities of the hotel and the other related services of the
operations of the company shall accordingly be procured. These include specifications of the
building and other facilities. It also includes budget allocation for hotel machineries and
equipment, furniture and fixtures, transport equipment and other office and hotel facilities
necessary in the operations.

FLOOR AREA ALLOCATION

The Hotel has a total lot area of 1250 square meters. It consists of 8 floors.

Building Floor Area

Main Building
Base 480.62 Sqm.
1st Floor 606.73 Sqm.
2nd Floor 569.16 Sqm.
3rd – 7th 389.00 Sqm.
Annex Building
1st Floor 623.20 Sqm.
2nd Floor 564.58 Sqm.

The Main Building is allocated as follows:

Main Building Facilities Floor Area
Gym 30.49 Sqm.
Pool 190.77 Sqm.
Bar and Restaurant 272.93 Sqm.
Function Hall 139.92 Sqm.
Hotel Rooms 1,166.35 Sqm.
Billiards Room 30.67 Sqm.
Massage Room 14.27 Sqm.

The Annex Building is allocated as follows:

Annex Building Facilities Floor Area
Guadalupe and Antigua Hall 112.63 Sqm.
Saint Kits and Martinique Hall 318.54 Sqm.
Aruba Hall 22.28 Sqm.
Time Square Coffee Shop 1st 23.20 / 2nd 32.20 Sqm.
Red Sunset Dining 29.40 Sqm.
Red Planer Bar 15.09 Sqm.
Chi Cha Convenience Store 78.44 Sqm.

The Hotel Rooms have the following floor area:

Annex Building Facilities Floor Area
Standard Single 10.67 Sqm.
Standard Double
2 Single Bed 12.81 Sqm.
1 Double Bed 11.85 Sqm.
Junior De Luxe 14.57 Sqm.
De Luxe 19.10 Sqm.
Executive 26.25 Sqm.

6
CAPITAL EXPENDITURES

Capital Asset Estimated Useful Life Cost Allocation

Building 30 Years 80,000,000
Hotel Machineries and 10,000,000
Equipment 15 Years
Hotel Furniture and Fixtures 15 Years 5,000,000
Office Equipment 15 Years 3,000,000
Office Furniture and Fixture 15 Years 2,000,000
Other Capital Assets 15 Years -
Total P 100,000,000

MARKET STUDY

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The market study is anchored on both the traditional method and the use of technological, high-
tech and mass media-based advertising facility. The traditional method of marketing refers to
the most common method to increase volume of customers by way of personal communication
for individual and corporate accounts. The internet or online marketing approach will employ
the use of the World Wide Web or internet to market. The latter facilitates the advanced and
online booking of hotel accommodation and other services needs of the customers.

ALBAY FOUNTAINBLUE, INC., Hotel and Banquet Hall is designed as a 3-star hotel in
the Bicol Region, particularly located at Daraga, Albay. It is expected to accommodate the
influx of both local and foreign tourists in Albay and the neighboring provinces of Camarines
Sur, Sorsogon and the other provinces in the Bicol Region, including Camarines Norte,
Masbate and Catanduanes. With the soon completion and operation of Albay (Alobo)
International Airport in the next year or two, a brighter and positive economic outlook is
expected to flourish in the region.

The project location is relatively near the Albay (Alobo) International Airport; 7 kilometers
from the business center of Daraga, Albay; 9 kilometers from the business center of Legazpi
City; 52 kilometers from Sorsogon and 97 kilometers from Naga City, Camarines Sur.

The basic sources of revenue of the Company is expected to come from hotel functions and
food services. Other revenue generating activities of the project come from incidental facilities
including, but not limited to, travel and tours, souvenir shops, laundry shop and gym.

The Company will be operating as a hotel and banquet hall will also be offering food and
catering services to accommodate social functions such as conferences, conventions, weddings,
birthdays and others.

Projected occupancy rate for the first 5 years is as follows:

Projected Revenue

First Year 50%

Second Year 60%
Third Year 68%
Fourth Year 74%
Fifth Year 80%

ORGANIZATION AND STAFFING

An organization is a social unit of people that is structured and managed to meet a need or to
pursue a collective goal. All organizations have a management structure that determine

8
relationships between the different activities and its members. It subdivides and assigns roles,
responsibilities, and authority to carry out different tasks. Organizations are open systems.
They affect and are affected by their environment.

One definition of management is that it is an integrated process by which it authorizes an

individual to create, maintain, operate and organize the selection and accomplishment of its
aim. Good management takes a big factor in the success of business. It reflects the means and
steps on how people behind the business execute their plans and programs to handle the project.

Management

Albay Fountain Blue, Inc., is a domestic family corporation duly registered with the Legazpi
Extension Office of the Securities and Exchange Commission under Company Registration
Number CS01728400 on August 23, 2017 to engage in hotel and related services. Its authorized
share capital is P 500,000.00 divided into 5,000 shares with par value of P 100.00 per share.
In compliance with the requirements of the Corporate Laws on capitalization, its initial paid up
capital amounted to P 125,000.00 but the incorporators committed to fully subscribe and fully
pay the authorized share capital the soonest.

As of the date of its corporate registration, the incorporators, citizenship and their designations
were as follows:

Name of Incorporator Citizenship Position/Designation

1. Antonio J. Mirabel, Jr. Filipino President

2. Lucia P. Mirabel Filipino Corporate Secretary
3. Karl Beethoven P. Mirabel Filipino Chief Financial Officer
4. Lemuel P. Mirabel Filipino Member
5. Ivy P. Mirabel Filipino Member

Top management and the executive committee consists of the incorporators listed above.

Staffing

The Company will adopt an organizational structure consistent with the operations of a typical
hotel, restaurant and other related services. The organization’s structure will include, but not
limited to, hotel supervisors, management staff, administrative, accounting and finance staff,
food and beverages, maintenance, transport and housekeeping personnel. New positions will
be created as deemed necessary.

The proposed organizational set up and staffing is adopted from a 5-Star Hotel in
Manila. It includes the following:

Department/Section Number of Personnel

Sales/Marketing/Reservation 2
Administration, Accounting and Finance 4

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 Front Office Desk 6
Food and Beverages/Kitchen 15
Human Resources 2
House Keeping 5
IT and Engineering 2
Security Services 12

The initial number of management staff and other personnel who will be employed will depend
on the operating requirements and capacity of the operations. Additional operational
requirements will be determined as the business operation grows and will accordingly be
supplied as required. Some staffs will be out-sourced via a third party agency.

FINANCIAL PROJECTIONS

A. Projected Balance Sheet

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ALBAY FOUNTAIN BLUE INC., HOTEL AND BANQUET HALL
PROJECTED STATEMENT OF FINANCIAL POSITION
In Philippine Pesos

Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS

Current Assets
Cash and Cash Equivalents 3,400,784.14 3,410,971.66 2,900,733.27 4,538,483.58 8,456,091.12
Trade and Other Receivables 711,200.00 853,090.00 966,602.00 1,051,736.00 1,136,870.00
Materials and Supplies 1,024,128.00 614,224.80 695,953.44 757,249.92 818,546.40
Prepayments and Other Current Assets - 439,278.62 1,363,860.29 2,096,671.54 2,829,482.78
Total Current Assets 5,136,112.14 5,317,565.08 5,927,149.00 8,444,141.04 13,240,990.30

Non - Current Assets

Property and Equipment - net 95,333,333.33 90,666,666.67 86,000,000.00 81,333,333.33 76,666,666.67
Total Non - Current Assets 95,333,333.33 90,666,666.67 86,000,000.00 81,333,333.33 76,666,666.67
TOTAL ASSETS 100,469,445.47 95,984,231.75 91,927,149.00 89,777,474.37 89,907,656.97

LIABILITIES AND EQUITY

Current Liabilities
Trade and Other Payables 2,978,660.83 6,541,097.67 7,008,118.47 7,358,384.07 7,708,649.67
Income Tax Payable - 585,704.83 1,818,480.38 2,795,562.05 3,772,643.71
Total Current Liabilities 2,978,660.83 7,126,802.50 8,826,598.85 10,153,946.11 11,481,293.38

Non - Current Liabilities

Bank Loans and Borrowings 100,000,000.00 90,000,000.00 80,000,000.00 70,000,000.00 60,000,000.00
Total Non - Current Liabilities 100,000,000.00 90,000,000.00 80,000,000.00 70,000,000.00 60,000,000.00
Total Liabilities 102,978,660.83 97,126,802.50 88,826,598.85 80,153,946.11 71,481,293.38

Equity
Share Capital 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
Retained Earnings (3,009,215.36) (1,642,570.75) 2,600,550.15 9,123,528.26 17,926,363.59
Total Equity (2,509,215.36) (1,142,570.75) 3,100,550.15 9,623,528.26 18,426,363.59
TOTAL LIABILITIES AND EQUITY 100,469,445.47 95,984,231.75 91,927,149.00 89,777,474.37 89,907,656.97

A.1 Lapsing Schedule of Property and Equipment

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ALBAY FOUNTAIN BLUE INC., HOTEL AND BANQUET HALL
SCHEDULE OF LAPSING OF PROPERTY AND EQUIPMENT
In Philippine Pesos

Year 1 Year 2 Year 3 Year 4 Year 5 Total

HOTEL EQUIPMENT
Cost
Building 80,000,000 80,000,000 80,000,000 80,000,000 80,000,000 80,000,000
Hotel Equipment 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Furniture and Fixture 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Total 95,000,000 95,000,000 95,000,000 95,000,000 95,000,000 95,000,000

Accumulated Depreciation
Beginning Balance - 4,333,333 8,666,667 13,000,000 17,333,333 -
Depreciation 4,333,333 4,333,333 4,333,333 4,333,333 4,333,333 21,666,667
Less: Disposals - - - - - -
Ending Balance 4,333,333 8,666,667 13,000,000 17,333,333 21,666,667 21,666,667
CARRYING AMOUNT - HOTEL EQUIPMENT 90,666,667 86,333,333 82,000,000 77,666,667 73,333,333 73,333,333

OFFICE EQUIPMENT
Cost
Office Equipment 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
Furniture and Fixture 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Total 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000

Accumulated Depreciation
Beginning Balance - 333,333 666,667 1,000,000 1,333,333 -
Depreciation 333,333 333,333 333,333 333,333 333,333 1,666,667
Less: Disposals - - - - - -
Ending Balance 333,333 666,667 1,000,000 1,333,333 1,666,667 1,666,667
CARRYING AMOUNT - OFFICE EQUIPMENT 4,666,667 4,333,333 4,000,000 3,666,667 3,333,333 3,333,333

B. Projected Income Statement

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ALBAY FOUNTAIN BLUE INC., HOTEL AND BANQUET HALL
PROJECTED STATEMENT OF INCOME STATEMENT AND RETAINED EARNINGS
In Philippine Pesos

Year 1 Year 2 Year 3 Year 4 Year 5 Total

Service Revenue 36,576,000.00 43,873,200.00 49,710,960.00 54,089,280.00 58,467,600.00 242,717,040.00
Less: Cost of Services 29,786,608.33 32,705,488.33 35,040,592.33 36,791,920.33 38,543,248.33 172,867,857.67
Gross Profit 6,789,391.67 11,167,711.67 14,670,367.67 17,297,359.67 19,924,351.67 69,849,182.33
Less: Operating Expenses
Advertising and Promotions 29,000.00 29,000.00 29,000.00 29,000.00 29,000.00 145,000.00
Communications, Lights and Water 102,000.00 102,000.00 102,000.00 102,000.00 102,000.00 510,000.00
Depreciation 333,333.33 333,333.33 333,333.33 333,333.33 333,333.33 1,666,666.67
Office and Other Supplies 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 120,000.00
Professional Fees 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 300,000.00
Representation and Entertainment 36,576.00 43,873.20 49,710.96 54,089.28 58,467.60 242,717.04
Salaries and Allowances 1,665,057.69 1,665,057.69 1,665,057.69 1,665,057.69 1,665,057.69 8,325,288.46
Taxes and Licenses 548,640.00 658,098.00 745,664.40 811,339.20 877,014.00 3,640,755.60
Income before Interest and Taxes 3,990,784.64 8,252,349.44 11,661,601.28 14,218,540.16 16,775,479.04 54,898,754.57
Less: Finance Costs 7,000,000.00 6,300,000.00 5,600,000.00 4,900,000.00 4,200,000.00 28,000,000.00
Income before Taxes (3,009,215.36) 1,952,349.44 6,061,601.28 9,318,540.16 12,575,479.04 26,898,754.57
Income Tax (30%) - 585,704.83 1,818,480.38 2,795,562.05 3,772,643.71 8,972,390.98
Profit (Loss) (3,009,215.36) 1,366,644.61 4,243,120.90 6,522,978.11 8,802,835.33 17,926,363.59

Retained Earnings, Beginning - (3,009,215.36) (1,642,570.75) 2,600,550.15 9,123,528.26 -

Less: Appropriations - - - - - -
Retained Earnings, Ending (3,009,215.36) (1,642,570.75) 2,600,550.15 9,123,528.26 17,926,363.59 17,926,363.59

B.1 Sales
Sales Projection Report - Rooms
No. of Year 1 Year 2 Year 3 Year 4 Year 5
Room Type Rate / Day Total
Rooms 50% 60% 68% 74% 80%
Standard Single 6 1,500.00 1,620,000.00 1,944,000.00 2,203,200.00 2,397,600.00 2,592,000.00 10,756,800.00
Standard Double - 2 Single 8 2,300.00 3,312,000.00 3,974,400.00 4,504,320.00 4,901,760.00 5,299,200.00 21,991,680.00
Standard Double - 1 Double 33 2,300.00 13,662,000.00 16,394,400.00 18,580,320.00 20,219,760.00 21,859,200.00 90,715,680.00
Junior De Luxe 10 2,600.00 4,680,000.00 5,616,000.00 6,364,800.00 6,926,400.00 7,488,000.00 31,075,200.00
De Luxe 16 3,100.00 8,928,000.00 10,713,600.00 12,142,080.00 13,213,440.00 14,284,800.00 59,281,920.00
Excutive 6 3,800.00 4,104,000.00 4,924,800.00 5,581,440.00 6,073,920.00 6,566,400.00 27,250,560.00
PWD 1 1,000.00 180,000.00 216,000.00 244,800.00 266,400.00 288,000.00 1,195,200.00
Addt'l Person w/o Bed 600.00 36,000 36,000 36,000 36,000 36,000 180,000.00
Addt'l Person w/ Bed 900.00 54,000 54,000 54,000 54,000 54,000 270,000.00
Total Sales 36,576,000.00 43,873,200.00 49,710,960.00 54,089,280.00 58,467,600.00 242,717,040.00

B.2 Direct Costs

Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Total
Cost of Sales
Direct Costs - Materials and Supplies
Room Supplies 5,852,160.00 7,019,712.00 7,953,753.60 8,654,284.80 9,354,816.00 38,834,726.40
Cleaning Supplies 4,389,120.00 5,264,784.00 5,965,315.20 6,490,713.60 7,016,112.00 29,126,044.80
Direct Costs - Salaries and Wages
Basic Salary 9,360,000.00 9,360,000.00 9,360,000.00 9,360,000.00 9,360,000.00 46,800,000.00
SSS, Philhealth and Pag-ibig 682,875.00 682,875.00 682,875.00 682,875.00 682,875.00 3,414,375.00
13th Month Pay and Other Benefits 780,000.00 780,000.00 780,000.00 780,000.00 780,000.00 3,900,000.00
Direct Costs - Depreciation
Building 2,666,666.67 2,666,666.67 2,666,666.67 2,666,666.67 2,666,666.67 13,333,333.33
Hotel Equipment 1,333,333.33 1,333,333.33 1,333,333.33 1,333,333.33 1,333,333.33 6,666,666.67
Furniture and Fixture 333,333.33 333,333.33 333,333.33 333,333.33 333,333.33 1,666,666.67
Direct Costs - Overhead
Electricity 2,194,560.00 2,632,392.00 2,982,657.60 3,245,356.80 3,508,056.00 14,563,022.40
Water 1,463,040.00 1,754,928.00 1,988,438.40 2,163,571.20 2,338,704.00 9,708,681.60
Telephone and Internet 731,520.00 877,464.00 994,219.20 1,081,785.60 1,169,352.00 4,854,340.80
Total Direct Costs 29,786,608.33 32,705,488.33 35,040,592.33 36,791,920.33 38,543,248.33 172,867,857.67

B.3 Operating and Administrative Expenses

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 Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating and Administrative Expenses
Advertising and Promotions
Print Ads and Flyers 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00
Radio Promotions 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 120,000.00
Communications, Lights and Water
Electricity 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00 240,000.00
Water 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 90,000.00
Telephone and Internet 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00 180,000.00
Depreciation
Office Equipment 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 1,000,000.00
Furniture and Fixture 133,333.33 133,333.33 133,333.33 133,333.33 133,333.33 666,666.67
Office and Other Supplies
Office Materials and Supplies 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 120,000.00
Professional Fees
Bookeeping Services 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 300,000.00
Representation and Entertainment
Representation Expenses 36,576.00 43,873.20 49,710.96 54,089.28 58,467.60 242,717.04
Salaries and Allowances
Basic Salary 1,440,000.00 1,440,000.00 1,440,000.00 1,440,000.00 1,440,000.00 7,200,000.00
SSS, Philhealth and Pag-ibig 105,057.69 105,057.69 105,057.69 105,057.69 105,057.69 525,288.46
13th Month Pay and Other Benefits 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 600,000.00
Taxes and Licenses
Local and National Taxes 365,760.00 438,732.00 497,109.60 540,892.80 584,676.00 2,427,170.40
Other Permits and Licenses 182,880.00 219,366.00 248,554.80 270,446.40 292,338.00 1,213,585.20
Total Operating and Adminsitrative Expenses 2,798,607.03 2,915,362.23 3,008,766.39 3,078,819.51 3,148,872.63 14,950,427.77

B.4 Finance Expenses

Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Total
Financing Expenses
Interest Expense - Bank Loan 7,000,000.00 6,300,000.00 5,600,000.00 4,900,000.00 4,200,000.00 28,000,000.00
Interest Expense - Others - - - - - -
Total Financing Expenses 7,000,000.00 6,300,000.00 5,600,000.00 4,900,000.00 4,200,000.00 28,000,000.00

C. Projected Cash Flows

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ALBAY FOUNTAIN BLUE INC., HOTEL AND BANQUET HALL
PROJECTED STATEMENT OF CASH FLOWS
In Philippine Pesos

Year 1 Year 2 Year 3 Year 4 Year 5

CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit (Loss) after Tax (3,009,215.36) 1,366,644.61 4,243,120.90 6,522,978.11 8,802,835.33
Adjustments:
Depreciation 4,666,666.67 4,666,666.67 4,666,666.67 4,666,666.67 4,666,666.67
Operating Cash Flows before Working Capital Changes 1,657,451.31 6,033,311.28 8,909,787.56 11,189,644.78 13,469,502.00
(Increase) Decrease in Operating Assets
Trade and Other Receivables (711,200.00) (141,890.00) (113,512.00) (85,134.00) (85,134.00)
Materials and Supplies (1,024,128.00) 409,903.20 (81,728.64) (61,296.48) (61,296.48)
Prepayments and Other Current Assets - (439,278.62) (924,581.66) (732,811.25) (732,811.25)
Increase (Decrease) in Operating Liabilities
Trade and Other Payables 2,978,660.83 3,562,436.83 467,020.80 350,265.60 350,265.60
Income Tax Payable - 585,704.83 1,232,775.55 977,081.66 977,081.66
NET CASH USED IN OPERATING ACTIVITIES 2,900,784.14 10,010,187.52 9,489,761.61 11,637,750.32 13,917,607.53

CASH FLOWS FROM INVESTING ACTIVITIES

(Acquisition) Disposal of Property and Equipment (100,000,000.00) - - - -
NET CASH USED IN INVESTING ACTIVITIES (100,000,000.00) - - - -

CASH FLOWS FROM FINANCING ACTIVITIES

Increase (Decrease) in Bank Loans and Borrowings 100,000,000.00 (10,000,000.00) (10,000,000.00) (10,000,000.00) (10,000,000.00)
Increase (Decrease) in Share Capital 500,000.00 - - - -
NET CASH USED IN FINANCING ACTIVITIES 100,500,000.00 (10,000,000.00) (10,000,000.00) (10,000,000.00) (10,000,000.00)

NET CASH FLOWS FROM OPERATIONS 3,400,784.14 10,187.52 (510,238.39) 1,637,750.32 3,917,607.53
CASH, BEGINNING OF THE YEAR - 3,400,784.14 3,410,971.66 2,900,733.27 4,538,483.58
CASH, ENDING OF THE YEAR 3,400,784.14 3,410,971.66 2,900,733.27 4,538,483.58 8,456,091.12

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