Financial Assumptions

1 The average inflation rate is 5.06%

2 The business would operate in 307
3 Production is expected to increase by 12%
4 Selling priceto retailers would be 30%
5 Selling price to by retailers to consumers would be 0%
6 Cash sales would be 80%
7 Credit sales would be 20%
8 The collection related to credit sales would be 90%
9 The terms for credit sales would give a discount of 2%
10 Provision for doubtful account would be 2%
11 The would be no write off of receivables
12 Sales returns and allowances would be 0%
The volume of purchases would increase proportionately with
13 the increase in the production
14 Direct and indirect materials would be purchased 60%
15 Every year end, 90%
16 The company would avail of the purchase discount at a 2%
17 The FIFO method would be used in valuing the inventory
18 Direct materials ending inventory would be 0%
19 Finished goods ending inventory would be 0%
20 There would be 2
21 Labor rate for the workers would be 200
22 Salary for bookkeeper would be 2000
23 Labor rate is expected to increase due to inflation at 5.06%
24 There would be a withholding taxes of 10%
25 Rent expense for the site is assumed to be 8,000
26 Rent expense for the site would be allocated 80%
27 Rent expense for the stall would be 0
28 Utilities expense would be allocated 80%
29 Utilities Expense is expected to increase due to inflation at 5.06%
30 Maintenance expense would be allocated 80%
31 Maintenance Expense is expected to increase due to inflation at 5.06%
32 Straight Line Method of depreciation would be used
33 Factory Equipment Furniture and Fixtures would have a 10
34 Office Equipment, Furniture and fixtures would have a 5
35 Leasehold Improvement-Site would have a 10
36 Store Equipment and furniture would have a 10
37 Leasehold Improvement-Store would have a 10
38 Advertising expense is estimated to decrease by 20%
39 All expenses are expected to increase by 5.06%
40 VAT payable would be equivalent to one month VAT
41 VAT rate is 0%
Thirteenth month pay will be given to the workers base on their
42 monthly salary
 Fees and Licenses are based on the assessment given by the
43 Office of the City Treasurer
44 There would be 3
45 The partners will contribute 100,000
Net income or loss is shared equally among the partners after
deducting the salaries to be given the managing partner and the
partner-bookkeeper in accordance with the agreement of the
46 partners as stipulated in the contract
47 The managing partner is entitled to a salary allowance of 75000
48 The industrial partner is entitled to a salary allowance of 0
49 The partners are allowed to withdraw 90%

Legends:
days
every year due following the learning curve theory
above cost
above cost
of gross sales
of the gross sales
of the total credit sales throughout the year
and it is expected that 70% would avail of the discount
of the outstanding receivable for the current year

of gross sales

on credit
of the credit purchases would be paid
rate

of the direct materials available for use of the current year.

of goods available for sale of the current year
workers
per day 0 per day for salesman
per day
rate
for the bookkeeper
per month
to factory and 20% to office
per month
to factory and 20% to office
rate
to factory 20% to office and 0% to store
rate

year useful life

year useful life
year useful life
useful life
useful life
per year
based on the average inflation rate except expenses for depreciation, rent and doubtful accounts.

or Other Percentage taxes of 3% assuming sales were made evenly during the year
partners
each to start the business, a total of 300,000

from their total share in the income

auto-fill
required to fill up
venly during the year
 Total Project Cost - for Two Months

Fixed Assets
Office Equipment and Furniture 4,260.00
Factory Equipment and Furnitures 14,884.50
Store Equipment -
Leasehold Improvements-Factory 13,950.00
Leasehold Improvements-Store - 33,094.50
Working Capital for Two Months
Direct Materials 99,537.30
Direct Labor 20,466.67
Factory Overhead
Indirect Materials 50,506.67
Rent Expense – Factory 12,800.00
Utilities Expense – Factory 1,706.00
Maintenance Expense – Factory 644.83
Supplies – Factory 344.25
SSS Contribution – Workers 1,473.20
Philhealth Contribution – Workers 400.00 67,874.95
Administrative Expenses
Rent Expense – Office 3,200.00
Utilities Expense Office 6,824.00
Supplies – Office 195.50
Maintenance Expense office 161.21
Legal Fees and Licenses 6,722.50 17,103.21
Selling Expense
Salaries-Salesman -
Delivery Expense -
Advertising Expense 1,583.33
Maintenance Expense-Store -
SSS Contribution – Salesman 800.00
Philhealth Contribution – Salesman -
Rent Expense-Stall - 2,383.33
Total 240,459.96
Cash on Hand 59,540.05
Total Project Costs 300,000.00
 SCHE
Sch
Sellin
2013

Direct Material Used/Unit 5.92

Labor Cost/Unit 1.22
Factory Overhead/ Unit 4.45
Total Cost/Unit 11.60
Markup to Retailers 30% 3.48
Selling Price-Retailers (VAT Exc) 15.08
Input VAT -
Selling Price Retailers 15.08
Markup to Consumers 0% -
Selling Price to Consumers 15.08

Sch
Sales
2013

Beg. Inventory
Add: Units Produced 100,800
Units Available for Sale 100,800
Less: Ending Inventory 0
Sales in Units 100,800

Sch
Direct Materials P
2013

Carrotd 0.00
Flour 0.00
Sugar 0.00
Milk 0.00
Eggs 0.00
Other Direct Materials
Other Direct Materials
Other Direct Materials
Other Direct Materials
Other Direct Materials
Other Direct Materials
Other Direct Materials
Other Direct Materials
Other Direct Materials
Other Direct Materials
Direct Materials Inclusive of VAT 0.00
Input VAT 0% 0.00
Direct Material Exclusive of VAT 0.00

Sch
Direct Materials Purc
2013

Carrots 72,000.00
Sweet Potato 64,800.00
Chayote 43,200.00
Moringa 14,880.00
Eggs 198,720.00
Corn Starch 86,400.00
Tofu 15,120.00
Salt 750.00
Seasonings 2,405.38
Brown Sugar 23,040.00
Garlic 54,750.00
Soy Sauce 21,158.40
Direct Materials 597,223.78

Sch
Direct Ma
2013

Direct Materials, Beg 0

Direct Materials Purchases 597,223.78
Direct Materials Available for use 597,223.78
Less: Direct Materials, End 0% 0.00
DM Used 597,223.78
Divided by: Annual Production 100,800
Direct Materials Used per Unit 5.92

Sch
Direc
2013
No. of Factory Worker 2
Multiply by No. of Days 307
Total Annual Working Days 614
Multiply by Labor Rate 200.00
Direct Labor Cost 122,800.00
Divided by: Annual Production 100,800
Direct labor per Unit 1.22

Sch
Rent Ex
2013

Rent Expense-Site(Inclusive of VAT) 96,000.00

Input VAT 0% -
Rent Expense (Exclusive of VAT) 96,000.00
Allocated to Factory 80% 76,800.00
Allocated to Office 20% 19,200.00

Sch
Rent Ex
2013

Rent Expense-Site(Inclusive of VAT) -

Input VAT 12% -
Rent Expense (Exclusive of VAT) -

Sch
Utilities
2013

Electricity 21,600.00
Telephone 11,880.00
LPG 9,900.00
Inclusive of Tax 43,380.00
Input Vat 0% -
Exclusive of Tax 43,380.00
Water 7,800.00
Total Utilities Expense 51,180.00
Allocated to Factory 80% 40,944.00
Allocated to Office 20% 10,236.00
 Sche
Maintenan
2013

Rag 306.00
Broom 219.00
Trash can 344.25
Soap 180.00
pail 195.50
Dishwashing liquid 288.00
Mop 209.50
Sponge 576.00
Tissue Paper 50.00
Fire Extinguisher 2,309.00
Dust pan 159
Other Maintenance Expenses
Other Maintenance Expenses
Other Maintenance Expenses
Other Maintenance Expenses
Maintenace Expence (VAT Inclusive) 4,836.25
Input VAT 0% -
Maintenace Expence (VAT Exclusive) 4,836.25
Allocated to Factory 80% 3,869.00
Allocated to Office 20% 967.25
Allocated to Selling 0% -

Annual Depre

Cost
Factory Equipment and Furniture
Gas stove 825.00
Refrigerator 9,500.00
Teflon Pan 1,399.50
Ceiling Fan 800.00
Wall Clock 100.00
Plastic Chair 760.00
Working Table 1,500.00
Total 14,884.50

Leasehold Improvements-Site 13,950.00

Leasehold Improvements-Store 0.00

Office Equipment and Furniture

Office table 1,500.00
Office Chair 1,200.00
Wall clock 60.00
Filing cabinet 1,500.00
Total 4,260.00

Store Equipment and Furniture

SEF 0.00
SEF 0.00
SEF 0.00
SEF 0.00
SEF 0.00
SEF
SEF
SEF
SEF
SEF
Total 0.00

Sche
Employe
Monthly Salary
Workers
2013 5,116.67
2014 5,375.57
2015 5,647.57
2016 5,933.34
2017 6,233.57

Sche
Fringe
Monthly Compensation
Bookkeeper
2013 2,000.00
2014 2,101.20
2015 2,207.52
2016 2,319.22
2017 2,436.57

Sche
Indirect
2013
Label 4,200.00
Paper plate 128,400.00
Paper bix 95,800.00
Spork 74,640.00
Factory tools and supplies 303,040.00

Schedule 12-
2013

Apron 105.00
Hairnet 150.00
Knife 90.00
Chopping board 75.00
Mixing Bowl 196.00
Pot holder 50.00
Teflon Pan 1,399.50
Factory tools and supplies 2,065.50

Sche
Factory
2013

Factory Rent Expense 76,800.00

Factory Maintenance Expense 3,869.00
Factory Utilities Expense 40,944.00
Factory Equipment and Furnitures-Depreciation 1,488.45
Leasehold Improvement Site-Depreciation 1,395.00
Indirect Materials 303,040.00
Employee benefits-Employer 21,472.53
Factory Tools and Suplies 2,065.50
Total Factory Overhead 449,008.98
Divided by: Annual Production 100,800
Factory Overhead per Unit 4.45

Sche
Office
2013

Ballpen 60.00
Bond paper 158.00
Calculator 240.00
Long envelope 45.00
Record book 100.00
Scissors 30.00
Staple wire 90.00
Battery 400.00
Stapler 50.00
Office Supplies 1,173.00

Sche
Taxes an
2013

DTI Registration 500.00

BMBE Registration 500.00
SEC Registration 500.00
BIR Registration 500.00
Zoning Fee 100.00
Annual Inspection Fee 200.00
Fire Inspection Fee 200.00
Medical Fee 100.00
Garbage Fee 500.00
Sanitary Fee 300.00
Sanitary Inspection Fee 300.00
Mayor's Permit 1,000.00
Business Tax 412.50
Occupational Tax 150.00
Business Plate 500.00
Nutritive Value Test 400.00
Microbiological test 560.00
Total Taxes and Licenses Fees 6,722.50

Sche
Allowance for D
2013

Allowance for Doubtful Accounts - Beginning

Add: Doubtful Account Expense 607.90
Allowance for Doubtful Accounts - Ending 607.90

Sche
Deliver
 2013

Delivery Expense per Month -

Number of Months 12
Annual Delivery Expense Inclusive of VAT -
Input VAT 0% -
Annual Delivery Expense Exclusive of VAT -

Sche
Advertisi
2013

Free Taste 2,000.00

Product Launching 6,000.00
Flyers 1,500.00
Advertising Expense 9,500.00

Sche
Fixe
2013

13month Pay 10,233.33

SSS and Philhealth Benefit 11,239.20
Depreciation- Factory Equip. and Furn. 1,488.45
Depreciation-Store Equipment -
Depreciation-Leasehold Improvement-Store -
Depreciation-Leasehold Improvement-Site 1,395.00
Depreciation-Office Furnitures 852.00
Rent Expense-Factory 76,800.00
Rent Expense-Office 19,200.00
Office Supplies Expense 1,173.00
Maintenance Expense-Factory 3,869.00
Maintenance Expense-Office 967.25
Maintenance-Selling -
Delivery Expense -
Utilities Expense-Factory 40,944.00
Utilities Expense-Office 10,236.00
Taxes and Licenses 6,722.50
Advertising Expense 9,500.00
Total Fixed Cost 194,619.73
Divided by Annual Production 100,800
Total Fixed Cost per Unit 1.93
 Sche
Varia
2013

Direct Materials 597,223.78

Direct Labor 122,800.00
Indirect Materials 303,040.00
Total Variable Cost 1,023,063.78
Divided by Annual Production 100,800
Total Variable Cost per Unit 10.15

Sche
Inp
2013

Direct Materials Purchases -

Indirect Materials -
Rent Expense-Site -
Rent Expense-Store -
Utilities Expense (Electricity, LPG, Telecom.) -
Maintenance Expense -
Factory Equipment and Furniture -
Factory Tools and Supplies -
Office Equipment and Furniture -
Office Supplies -
Leasehold Improvements-Site -
Leasehold Improvements-Store -
Store Furniture and Fixtures -
Delivery Expense -
Advertising Expense -
Total Input VAT -

Sche
Other Percent
2013

Net Sales 1,515,487.31

Other Percentage Taxes for the year 3% 45,464.62
Other Percentage Taxes for the last month 3% 3,788.72
 Sche
Contribu
2013

Sales 1,519,742.59
Total Variable Costs 1,023,063.78
Contribution Margin 496,678.81
Units Sold 100,800
Contribution Margin per Unit 4.93
Contribution Margin Percentage 32.68%

Sche
Annual C
2013

Net Income 227,731.28

Add: Depreciation Expense 3,735.45
Add: Doubtful Account Expense 607.90
Add:Other Percentage Taxes Payable 3,788.72
Add:Withholding Taxes Payable 200.00
Annual Cash Return 236,063.35

Sche
Schedule of Profit Distr
2013 Partner 1 (MP)

Salary 75,000.00
Remaining Profit/Loss 50,910.43
Total Share 125,910.43

2014
Salary 75,000.00
Remaining Profit/Loss 127,530.98
Total Share 202,530.98

2015
Salary 75,000.00
Remaining Profit/Loss 147,724.73
Total Share 222,724.73

2016
Salary 75,000.00
Remaining Profit/Loss 171,065.02
Total Share 246,065.02

2017
Salary 75,000.00
Remaining Profit/Loss 197,888.21
Total Share 272,888.21

NOTES to FINANC
N
Net
2013

Cash Sales 80% 1,215,794.07

Credit Sales 20% 303,948.52
Gross Sales 1,519,742.59
Less: Sales Return and Allowances 0% -
Credit Sales Discount 2% 4,255.28
Net Sales 1,515,487.31

N
Cost of G
2013

Direct Materials Used 597,223.78

Direct Labor 122,800.00
Factory Overhead 449,008.98
Total Manufacturing Cost 1,169,032.76
Add: Finished Goods Inventory Beginning -
Goods Available For Sale 1,169,032.76
Less: Finished Goods Inventory End -
Cost of Goods Sold 1,169,032.76

N
Operatin
2013
Selling Expenses
Advertising 9,500.00
Total Selling Expense 9,500.00
Administrative Expense
Depreciation-Office 852.00
Office Utilities 10,236.00
Maintenance Expense- Office 967.25
Permits and Licenses 6,722.50
Office Supplies 1,173.00
Doubtful Accounts 607.90
Compensation Expense- bookkeeper 24,000.00
Office Rent Expense 19,200.00
Other Percentage Taxes 45,464.62
Total Administrative Expense 109,223.27
Operating Expenses 118,723.27

N
Accounts
2013

Accounts Receivable, Beg

Credit Sales 303,948.52
Total 303,948.52
Less: Collection 90% 273,553.67
Accounts Receivable, End 30,394.85
Less: Allowance for Doubtful Accounts 2% 607.90
Accounts Receivable, Net 29,786.95

N
Inve
2013

Direct Materials 0.00

Finished Goods -
Total Inventory 0.00

N
Property Plan
2013

Factory Equipment and Furniture 14,884.50

Leasehold Imporvements-Site 13,950.00
Total 28,834.50
Accumulated Depreciation 2,883.45
Net Book Value 25,951.05

Office Furniture 4,260.00

Accumulated Depreciation 852.00
Net Book Value 3,408.00

Store Furniture and Fixtures -

Leasehold Improvement-Stall -
Total -
Accumulated Depreciation -
Net Book Value -

Total Net Book Value 29,359.05

N
Accoun
2013

Accounts Payable, Beg

Purchases on Account 60% 540,158.27
Less: Purchase Discount 2% 9,722.85
Net Purchases 530,435.42
Total 530,435.42
Less: Payment 90% 477,391.88
Accounts Payable, End 53,043.54

N
VAT P
2013

Output VAT 3,788.72

Input VAT -
VAT Payable this Period 3,788.72
VAT payable, beginning
VAT Paid 3,472.99
VAT Payable, end 315.73
 SCHEDULES
Schedule 1
Selling Price
2014 2015

6.22 6.54
1.14 1.07
4.15 3.85
11.51 11.46
3.45 3.44
14.97 14.90
1.80 1.79
16.76 16.69
- -
16.76 16.69

Schedule 2
Sales Volume
2014 2015

0 0
112,896 126,444
112,896 126,444
0 0
112,896 126,444

Schedule 3
Direct Materials Purchases (VATABLE)
2014 2015

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
 0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00

Schedule 4
Direct Materials Purchases (VAT EXCEMPT)
2014 2015

84,720.38 99,688.10
76,248.35 89,719.29
50,832.23 59,812.86
17,508.88 20,602.21
233,828.26 275,139.17
101,664.46 119,625.72
17,791.28 20,934.50
882.50 1,038.42
2,830.34 3,330.39
27,110.52 31,900.19
64,422.79 75,804.50
24,896.50 29,295.01
702,736.50 826,890.36

Schedule 5
Direct Materials Used
2014 2015

0.00 0.00
702,736.50 826,890.36
702,736.50 826,890.36
0.00 0.00
702,736.50 826,890.36
112,896 126,444
6.22 6.54

Schedule 6
Direct Labor
2014 2015
 2 2
307 307
614 614
210.12 220.75
129,013.68 135,541.77
112,896 126,444
1.14 1.07

Schedule 7
Rent Expense-Site
2014 2015

96,000.00 96,000.00
- -
96,000.00 96,000.00
76,800.00 76,800.00
19,200.00 19,200.00

Schedule 8
Rent Expense-Stall
2014 2015

- -
- -
- -

Schedule 9
Utilities Expense
2014 2015

22,692.96 23,841.22
12,481.13 13,112.67
10,400.94 10,927.23
45,575.03 47,881.12
- -
45,575.03 47,881.12
8,194.68 8,609.33
53,769.71 56,490.46
43,015.77 45,192.36
10,753.94 11,298.09
 Schedule 10
Maintenance Expense
2014 2015

321.48 337.75
230.08 241.72
361.67 379.97
189.11 198.68
205.39 215.79
302.57 317.88
220.10 231.24
605.15 635.77
52.53 55.19
2,425.84 2,548.58
167.05 175.50
- -
- -
- -
- -
5,080.96 5,338.06
- -
5,080.96 5,338.06
4,064.77 4,270.45
1,016.19 1,067.61
- -

Schedule 11
Annual Depreciation of Property Plant and Equipment

Input VAT Exclusive of VAT

0%
- 825.00
- 9,500.00
- 1,399.50
- 800.00
- 100.00
- 760.00
- 1,500.00
0.00 14,884.50

- 13,950.00
- -

- 1,500.00
 - 1,200.00
- 60.00
- 1,500.00
- 4,260.00

- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -

Schedule 12
Employee Benefits
SSS Philhealth 12 months benefits
ER EE ER EE
368.30 181.70 100.00 100.00
405.20 199.80 100.00 100.00
405.20 199.80 100.00 100.00
442.00 218.00 100.00 100.00
442.00 218.00 100.00 100.00

Schedule 13
Fringe Benefits
Withholding Tax Annual
10% Net Compensation
200.00 21,600.00
210.12 22,692.96
220.75 23,841.22
231.92 25,047.59
243.66 26,315.00

Schedule 11
Indirect Materials
2014 2015
 4,412.52 4,635.79
134,897.04 141,722.83
100,647.48 105,740.24
78,416.78 82,384.67
318,373.82 334,483.54

Factory Tools and Supplies

2014 2015

110.31 115.89
157.59 165.56
94.55 99.34
78.80 82.78
205.92 216.34
52.53 55.19
1,470.31 1,544.71
2,170.01 2,279.82

Schedule 13
Factory Overhead
2014 2015

76,800.00 76,800.00
4,064.77 4,270.45
43,015.77 45,192.36
1,488.45 1,488.45
1,395.00 1,395.00
318,373.82 334,483.54
22,875.94 23,419.95
2,170.01 2,279.82
468,013.75 487,049.75
112,896 126,444
4.15 3.85

Schedule 14
Office Supplies
2014 2015

63.04 66.23
165.99 174.39
252.14 264.90
47.28 49.67
 105.06 110.38
31.52 33.11
94.55 99.34
420.24 441.50
52.53 55.19
1,232.35 1,294.71

Schedule 15
Taxes and Licenses
2013 2013

500.00 500.00
500.00 500.00
500.00 500.00
500.00 500.00
100.00 100.00
200.00 200.00
200.00 200.00
100.00 100.00
500.00 500.00
300.00 300.00
300.00 300.00
1,000.00 1,000.00
412.50 412.50
150.00 150.00
500.00 500.00
400.00 400.00
560.00 560.00
6,722.50 6,722.50

Schedule 16
Allowance for Doubtful Accounts
2014 2015

607.90 817.77
209.88 108.18
817.77 925.96

Schedule 17
Delivery Expense
 2014 2015

- -
12 12
- -
- -
- -

Schedule 18
Advertising Expense
2014 2015

1,680.96 1,412.81
5,042.88 4,238.44
1,260.72 1,059.61
7,984.56 6,710.86

Schedule 19
Fixed Cost
2014 2015

10,751.14 11,295.15
11,807.90 12,405.38
1,488.45 1,488.45
- -
- -
1,395.00 1,395.00
852.00 852.00
76,800.00 76,800.00
19,200.00 19,200.00
1,232.35 1,294.71
4,064.77 4,270.45
1,016.19 1,067.61
- -
- -
43,015.77 45,192.36
10,753.94 11,298.09
6,722.50 6,722.50
7,984.56 6,710.86
197,084.58 199,992.57
112,896 126,444
1.75 1.58
 Schedule 21
Variable Cost
2014 2015

702,736.50 826,890.36
129,013.68 135,541.77
318,373.82 334,483.54
1,150,124.00 1,296,915.67
112,896 126,444
10.19 10.26

Schedule 22
Input VAT
2014 2015

- -
- -
- -
- -
- -
- -

- -

- -

- -
- -
- -

Schedule 23
Other Percentage Taxes (OPT)
2014 2015

1,887,157.41 2,104,536.38
56,614.72 63,136.09
4,717.89 - 5,261.34 -
 Schedule 24
Contribution Margin
2014 2015

1,892,456.28 2,110,445.62
1,150,124.00 1,296,915.67
742,332.28 813,529.95
112,896 126,444
6.58 6.43
39.23% 38.55%

Schedule 25
Annual Cash Return
2014 2015

457,592.93 518,174.19
3,735.45 3,735.45
209.88 108.18
51,896.83 - 57,874.75 -
210.12 - 220.75 -
513,645.20 - 580,113.33 -

Schedule 25
Schedule of Profit Distribution Between Partners
Partner 2 Partner 3

- -
50,910.43 50,910.43
50,910.43 50,910.43

- -
127,530.98 127,530.98
127,530.98 127,530.98

- -
147,724.73 147,724.73
147,724.73 147,724.73

- -
171,065.02 171,065.02
 171,065.02 171,065.02

- -
197,888.21 197,888.21
197,888.21 197,888.21

ES to FINANCIAL STATEMENTS
Note 1
Net Sales
2014 2015

1,513,965.03 1,688,356.50
378,491.26 422,089.12
1,892,456.28 2,110,445.62
- -
5,298.88 5,909.25
1,887,157.41 2,104,536.38

Note 2
Cost of Goods Sold
2014 2015

702,736.50 826,890.36
129,013.68 135,541.77
468,013.75 487,049.75
1,299,763.93 1,449,481.88
- -
1,299,763.93 1,449,481.88
- -
1,299,763.93 1,449,481.88

Note3
Operating Expenses
2014 2015
 7,984.56 6,710.86
7,984.56 - 6,710.86 -

852.00 852.00
10,753.94 11,298.09
1,016.19 1,067.61
6,722.50 6,722.50
1,232.35 1,294.71
209.88 108.18
25,214.40 26,490.25
19,200.00 19,200.00
56,614.72 63,136.09
121,815.99 - 130,169.44 -
129,800.55 - 136,880.30 -

Note 4
Accounts Receivable
2014 2015

30,394.85 40,888.61
378,491.26 422,089.12
408,886.11 462,977.74
367,997.50 416,679.96
40,888.61 46,297.77
817.77 925.96
40,070.84 45,371.82

Note 5
Inventories
2014 2015

0.00 0.00
- -
0.00 0.00

Note 6
Property Plant and Equipment
2014 2015

14,884.50 14,884.50
 13,950.00 13,950.00
28,834.50 28,834.50
5,766.90 8,650.35
23,067.60 20,184.15

4,260.00 4,260.00
1,704.00 2,556.00
2,556.00 1,704.00

- -
- -
- -
- -
- -

25,623.60 21,888.15

Note 7
Accounts Payable
2014 2015

53,043.54 65,468.17
612,666.19 696,824.34
11,027.99 12,542.84
601,638.20 684,281.50
654,681.74 749,749.68
589,213.57 674,774.71
65,468.17 74,974.97

Note 8
VAT Payable
2014 2015

4,717.89 5,261.34
- -
4,717.89 5,261.34
315.73 708.88
4,324.74 4,822.90
708.88 1,147.33
2016 2017

6.87 7.22
1.01 0.94
3.59 3.33
11.46 11.50
3.44 3.45
14.90 14.95
1.79 1.79
16.69 16.74
- -
16.69 16.74

2016 2017

0 0
141,617 158,611
141,617 158,611
0 0
141,617 158,611

2016 2017

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
 0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00

2016 2017

117,300.20 138,023.86
105,570.18 124,221.48
70,380.12 82,814.32
24,242.04 28,524.93
323,748.55 380,945.86
140,760.24 165,628.63
24,633.04 28,985.01
1,221.88 1,437.75
3,918.77 4,611.11
37,536.06 44,167.64
89,197.03 104,955.64
34,470.62 40,560.61
972,978.74 1,144,876.84

2016 2017

0.00 0.00
972,978.74 1,144,876.84
972,978.74 1,144,876.84
0.00 0.00
972,978.74 1,144,876.84
141,617 158,611
6.87 7.22

2016 2017
 2 2
307 307
614 614
231.92 243.66
142,400.19 149,605.64
141,617 158,611
1.01 0.94

2016 2017

96,000.00 96,000.00
- -
96,000.00 96,000.00
76,800.00 76,800.00
19,200.00 19,200.00

2016 2017

- -
- -
- -

2016 2017

25,047.59 26,315.00
13,776.17 14,473.25
11,480.15 12,061.04
50,303.91 52,849.29
- -
50,303.91 52,849.29
9,044.96 9,502.64
59,348.87 62,351.93
47,479.10 49,881.54
11,869.77 12,470.39
 2016 2017

354.84 372.80
253.95 266.80
399.20 419.40
208.73 219.29
226.70 238.18
333.97 350.87
242.94 255.23
667.94 701.73
57.98 60.91
2,677.54 2,813.02
184.38 193.71
- -
- -
- -
- -
5,608.17 5,891.94
- -
5,608.17 5,891.94
4,486.53 4,713.55
1,121.63 1,178.39
- -

Residual Value Useful Life (years) Annual Depreciation

10 82.50
10 950.00
10 139.95
10 80.00
10 10.00
10 76.00
10 150.00
1,488.45

10 1,395.00
10 -

5 300.00
 5 240.00
5 12.00
5 300.00
- 852.00

10 -
10 -
10 -
10 -
10 -
10 -
10 -
10 -
10 -
10 -
- -

12 months benefits 13th Month Pay Total Annual Benefits

5,619.60 5,116.67 10,736.27

6,062.40 5,375.57 11,437.97
6,062.40 5,647.57 11,709.97
6,504.00 5,933.34 12,437.34
6,504.00 6,233.57 12,737.57

2016 2017
 4,870.36 5,116.81
148,894.01 156,428.04
111,090.70 116,711.89
86,553.34 90,932.94
351,408.41 369,189.67

2016 2017

121.76 127.92
173.94 182.74
104.36 109.65
86.97 91.37
227.28 238.78
57.98 60.91
1,622.88 1,704.99
2,395.18 2,516.37

2016 2017

76,800.00 76,800.00
4,486.53 4,713.55
47,479.10 49,881.54
1,488.45 1,488.45
1,395.00 1,395.00
351,408.41 369,189.67
24,874.68 25,475.14
2,395.18 2,516.37
507,932.17 528,943.35
141,617 158,611
3.59 3.33

2016 2017

69.58 73.10
183.22 192.49
278.31 292.39
52.18 54.82
 115.96 121.83
34.79 36.55
104.36 109.65
463.84 487.31
57.98 60.91
1,360.22 1,429.05

2013 2013

500.00 500.00
500.00 500.00
500.00 500.00
500.00 500.00
100.00 100.00
200.00 200.00
200.00 200.00
100.00 100.00
500.00 500.00
300.00 300.00
300.00 300.00
1,000.00 1,000.00
412.50 412.50
150.00 150.00
500.00 500.00
400.00 400.00
560.00 560.00
6,722.50 6,722.50

2016 2017

925.96 1,038.01
112.06 127.75
1,038.01 1,165.76
2016 2017

- -
12 12
- -
- -
- -

2016 2017

1,187.44 998.02
3,562.32 2,994.06
890.58 748.52
5,640.35 4,740.60

2016 2017

11,866.68 12,467.14
13,033.10 13,692.57
1,488.45 1,488.45
- -
- -
1,395.00 1,395.00
852.00 852.00
76,800.00 76,800.00
19,200.00 19,200.00
1,360.22 1,429.05
4,486.53 4,713.55
1,121.63 1,178.39
- -
- -
47,479.10 49,881.54
11,869.77 12,470.39
6,722.50 6,722.50
5,640.35 4,740.60
203,315.34 207,031.17
141,617 158,611
1.44 1.31
 2016 2017

972,978.74 1,144,876.84
142,400.19 149,605.64
351,408.41 369,189.67
1,466,787.33 1,663,672.14
141,617 158,611
10.36 10.49

2016 2017

- -
- -
- -
- -
- -
- -

- -

- -

- -
- -
- -

2016 2017

2,356,923.04 2,647,474.25
70,707.69 79,424.23
5,892.31 6,618.69
 2016 2017

2,363,540.95 2,654,908.00
1,466,787.33 1,663,672.14
896,753.62 991,235.85
141,617 158,611
6.33 6.25
37.94% 37.34%

2016 2017

588,195.06 668,664.64
3,735.45 3,735.45
112.06 127.75
64,815.38 72,805.54
231.92 243.66
657,089.88 745,577.05

Total

75,000.00
152,731.28
227,731.28

Total
75,000.00
382,592.93
457,592.93

Total
75,000.00
443,174.19
518,174.19

Total
75,000.00
513,195.06
 588,195.06

Total
75,000.00
593,664.64
668,664.64

2016 2017

1,890,832.76 2,123,926.40
472,708.19 530,981.60
2,363,540.95 2,654,908.00
- -
6,617.91 7,433.74
2,356,923.04 2,647,474.25

2016 2017

972,978.74 1,144,876.84
142,400.19 149,605.64
507,932.17 528,943.35
1,623,311.09 1,823,425.82
- -
1,623,311.09 1,823,425.82
- -
1,623,311.09 1,823,425.82

2016 2017
 5,640.35 4,740.60
5,640.35 4,740.60

852.00 852.00
11,869.77 12,470.39
1,121.63 1,178.39
6,722.50 6,722.50
1,360.22 1,429.05
112.06 127.75
27,830.66 29,238.89
19,200.00 19,200.00
70,707.69 79,424.23
139,776.53 150,643.19
145,416.88 155,383.79

2016 2017

46,297.77 51,900.60
472,708.19 530,981.60
519,005.96 582,882.20
467,105.37 524,593.98
51,900.60 58,288.22
1,038.01 1,165.76
50,862.58 57,122.46

2016 2017

0.00 0.00
- -
0.00 0.00

2016 2017

14,884.50 14,884.50
 13,950.00 13,950.00
28,834.50 28,834.50
11,533.80 14,417.25
17,300.70 14,417.25

4,260.00 4,260.00
3,408.00 4,260.00
852.00 -

- -
- -
- -
- -
- -

18,152.70 14,417.25

2016 2017

74,974.97 85,530.39
794,632.29 908,439.90
14,303.38 16,351.92
780,328.90 892,087.99
855,303.87 977,618.37
769,773.49 879,856.54
85,530.39 97,761.84

2016 2017

5,892.31 6,618.69
- -
5,892.31 6,618.69
1,147.33 1,638.36
5,401.28 6,067.13
1,638.36 2,189.91
 Company Name
Projected Income Statement
For the Years Ended December 2013-2017
Particulars Note 2013 2014
Net Sales 1 1,515,487.31 1,887,157.41
Less: Cost of Goods Sold 2 1,169,032.76 1,299,763.93
Gross Profit 346,454.55 587,393.48
Less: Operating Expense
Selling Expense 9,500.00 7,984.56
Administrative Expense 109,223.27 121,815.99
Total Operating Expenses 3 118,723.27 129,800.55

Net Income 227,731.28 457,592.93

Company Name
Projected Statement of Financial Position
December 2013-2017
2013 2014
ASSETS
Currents Assets
Cash 321,267.28 425,219.60
Accounts Receivable, Net 4 29,786.95 40,070.84
Total Current Assets 351,054.24 465,290.43
Non Current Assets
Property, Plant and Equip. 5 29,359.05 25,623.60
Total Non Current Assets 29,359.05 25,623.60

TOTAL ASSETS 380,413.29 490,914.03

LIABILITIES &PARTNER'S EQUITY

Current Liabilities
Accounts Payable 6 53,043.54 65,468.17
Other Percentage Taxes 3,788.72 4,717.89
Withholding Tax Payable 200.00 210.12
Total Current Liabilities 57,032.26 70,396.19
Partner's Equity
Partner 1 (MP) 112,591.04 132,844.14
Partner 2 105,091.04 117,844.14
Partner 3 105,091.04 117,844.14
Total Partner's Equity 322,773.13 368,532.42

TOTAL LIABILITIES & EQUITY 379,805.39 438,928.61

 Company Name
Projected Statement of Changes in Partners Equity
For the Years Ended 2013-2017
2013 2014

Capital balance beginning 100,000.00 112,591.04

Add: Share in Operating Income 125,910.43 202,530.98
Less: Withdrawal (113,319.38) (182,277.88)
Partner 1 (MP) 112,591.04 132,844.14

Capital balance beginning 100,000.00 105,091.04

Add: Share in Operating Income 50,910.43 127,530.98
Less: Withdrawal (45,819.38) (114,777.88)
Partner 2 105,091.04 117,844.14

Capital balance beginning 100,000.00 105,091.04

Add: Share in Operating Income 50,910.43 127,530.98
Less: Withdrawal (45,819.38) (114,777.88)
Partner 3 105,091.04 117,844.14

Company Name
Projected Statement Of Cash Flows
For the Years 2013-2017
2013 2014
Cash Flow from Operating Act
Annual Cash Return 236,063.35 513,645.20
Add(Deduct)
Increase in Accounts Receivable (29,786.95) (10,283.88)
Increase in Inventory - -
Increase in Accounts Payable 53,043.54 12,424.63
Net Cash Provided (used) by Operating 259,319.94 515,785.95

Cash Flow from Investing Activity

Acquisition of Fixed Asset 33,094.50
Net Cash Used by Investing (33,094.50) -

Cash Flow from Financing

Initial Investment 300,000.00
Withdrawal (204,958.15) (411,833.64)
Net Cash Provided by Financing 95,041.85 (411,833.64)

Net Increase in Cash 321,267.28 103,952.32

Cash Balance Beg 321,267.28
Cash Balance Ending 321,267.28 425,219.60
e
tement
ber 2013-2017
2015 2016 2017
2,104,536.38 2,356,923.04 2,647,474.25
1,449,481.88 1,623,311.09 1,823,425.82
655,054.49 733,611.94 824,048.43

6,710.86 5,640.35 4,740.60

130,169.44 139,776.53 150,643.19
136,880.30 145,416.88 155,383.79

518,174.19 588,195.06 668,664.64

e
ncial Position
017
2015 2016 2017

543,181.96 675,960.94 825,711.38

45,371.82 50,862.58 57,122.46
588,553.78 726,823.52 882,833.84

21,888.15 18,152.70 14,417.25

21,888.15 18,152.70 14,417.25

610,441.93 744,976.22 897,251.09

74,974.97 85,530.39 97,761.84

5,261.34 5,892.31 6,618.69
220.75 231.92 243.66
80,457.06 91,654.62 104,624.18

155,116.61 179,723.12 207,011.94

132,616.61 149,723.12 169,511.94
132,616.61 149,723.12 169,511.94
420,349.84 479,169.35 546,035.81

500,806.90 570,823.96 650,659.99 607.90

e
in Partners Equity
13-2017
2015 2016 2017

132,844.14 155,116.61 179,723.12

222,724.73 246,065.02 272,888.21
(200,452.26) (221,458.52) (245,599.39)
155,116.61 179,723.12 207,011.94

117,844.14 132,616.61 149,723.12

147,724.73 171,065.02 197,888.21
(132,952.26) (153,958.52) (178,099.39)
132,616.61 149,723.12 169,511.94

117,844.14 132,616.61 149,723.12

147,724.73 171,065.02 197,888.21
(132,952.26) (153,958.52) (178,099.39)
132,616.61 149,723.12 169,511.94

e
ash Flows
2017
2015 2016 2017

580,113.33 657,089.88 745,577.05

(5,300.98) (5,490.77) (6,259.87)

- - -
9,506.79 10,555.42 12,231.45
584,319.14 662,154.53 751,548.63

- - -

(466,356.77) (529,375.56) (601,798.18)

(466,356.77) (529,375.56) (601,798.18)

117,962.37 132,778.97 149,750.45

425,219.60 543,181.96 675,960.94
543,181.96 675,960.94 825,711.38
51,985.43 109,635.03 174,152.26
 Table 5.______
Current Ratio
Year Current Asset Current Liabilities Current Ratio
2013 351,054.24 57,032.26 6.16
2014 465,290.43 70,396.19 6.61
2015 588,553.78 80,457.06 7.32
2016 726,823.52 91,654.62 7.93
2017 882,833.84 104,624.18 8.44

Table 5._______
Quick or Acid Test Ratio
Year Cash Accounts Receiveble Quick Assets
2013 321,267.28 29,786.95 351,054.24
2014 425,219.60 40,070.84 465,290.43
2015 543,181.96 45,371.82 588,553.78
2016 675,960.94 50,862.58 726,823.52
2017 825,711.38 57,122.46 882,833.84

Table 5._______
Working Capital
Year Current Asset Current Liabilities Working Capital
2013 351,054.24 57,032.26 294,021.98
2014 465,290.43 70,396.19 394,894.25
2015 588,553.78 80,457.06 508,096.72
2016 726,823.52 91,654.62 635,168.90
2017 882,833.84 104,624.18 778,209.66

Table 5.________
Working Capital to Total Assets
Year Working Capital Total Assets Ratio
2013 294,021.98 380,413.29 0.77
2014 394,894.25 490,914.03 0.80
2015 508,096.72 610,441.93 0.83
2016 635,168.90 744,976.22 0.85
2017 778,209.66 897,251.09 0.87

Table 5.______
Cash Flow Liquidity Ratio
Year Cash Cash from Operating Current Liabilities
2013 321,267.28 259,319.94 57,032.26
2014 425,219.60 515,785.95 70,396.19
2015 543,181.96 584,319.14 80,457.06
2016 675,960.94 662,154.53 91,654.62
2017 825,711.38 751,548.63 104,624.18

Table 5.______
Defensive Interval Ratio
Year Quick asset Operating Expenses Ratio
2013 351,054.24 118,723.27 2.96
2014 465,290.43 129,800.55 3.58
2015 588,553.78 136,880.30 4.30
2016 726,823.52 145,416.88 5.00
2017 882,833.84 155,383.79 5.68

Table5.______
Gross Profit Margin
Year Gross Profit Net Sales Ratio (%)
2013 346,454.55 1,515,487.31 22.86%
2014 587,393.48 1,887,157.41 31.13%
2015 655,054.49 2,104,536.38 31.13%
2016 733,611.94 2,356,923.04 31.13%
2017 824,048.43 2,647,474.25 31.13%

Table 5._______
Operating Profit Margin
Year Operating Profit Net Sales Ratio (%)
2013 227,731.28 1,515,487.31 15.03%
2014 457,592.93 1,887,157.41 24.25%
2015 518,174.19 2,104,536.38 24.62%
2016 588,195.06 2,356,923.04 24.96%
2017 668,664.64 2,647,474.25 25.26%

Table 5.______
Net Profit Margin
Year Net Income Net Sales Ratio (%)
2013 227,731.28 1,515,487.31 15.03%
2014 457,592.93 1,887,157.41 24.25%
2015 518,174.19 2,104,536.38 24.62%
2016 588,195.06 2,356,923.04 24.96%
2017 668,664.64 2,647,474.25 25.26%

Table 5.________
Cash Flow Margin
Year Cash from Operating Net Sales Ratio (%)
2013 259,319.94 1,515,487.31 17.11%
2014 515,785.95 1,887,157.41 27.33%
2015 584,319.14 2,104,536.38 27.76%
2016 662,154.53 2,356,923.04 28.09%
2017 751,548.63 2,647,474.25 28.39%

Table 5.______
Rate of Return on Asset
Year Net Income Ave. Total Asset Ratio (%)
2013 227,731.28 380,413.29 59.86%
2014 457,592.93 435,663.66 105.03%
2015 518,174.19 550,677.98 94.10%
2016 588,195.06 677,709.08 86.79%
2017 668,664.64 821,113.65 81.43%

Table 5.________
Rate of Return in Equity
Year Net Income Ave. Partners Equity Ratio (%)
2013 227,731.28 322,773.13 70.55%
2014 457,592.93 345,652.77 132.39%
2015 518,174.19 394,441.13 131.37%
2016 588,195.06 449,759.59 130.78%
2017 668,664.64 512,602.58 130.45%

Table5.____
Debt Ratio
Year Total Liabilities Total Assets Ratio (%)
2013 57,032.26 380,413.29 14.99%
2014 70,396.19 490,914.03 14.34%
2015 80,457.06 610,441.93 13.18%
2016 91,654.62 744,976.22 12.30%
2017 104,624.18 897,251.09 11.66%

Table 5.___
Equity Ratio
Year Total Partners Equity Total Assets Ratio (%)
2013 322,773.13 380,413.29 84.85%
2014 368,532.42 490,914.03 75.07%
2015 420,349.84 610,441.93 68.86%
2016 479,169.35 744,976.22 64.32%
2017 546,035.81 897,251.09 60.86%

Table 5.______
Debt to Equity Ratio
Year Total Liabilities Total Partners Equity Ratio (%)
2013 57,032.26 322,773.13 17.67%
2014 70,396.19 368,532.42 19.10%
2015 80,457.06 420,349.84 19.14%
2016 91,654.62 479,169.35 19.13%
2017 104,624.18 546,035.81 19.16%

Table 5._______
Accounts Receivables Turnover
Year Net Credit Sales Ave. Accts. Rec. A/R Turnover
2013 299,693.24 29,786.95 10.06
2014 373,192.38 34,928.90 10.68
2015 416,179.88 42,721.33 9.74
2016 466,090.28 48,117.20 9.69
2017 523,547.86 53,992.52 9.70

Table 5.______
Average Collection Period
Year Days in a Year A/R Turnover Days
2013 365 10.06 36
2014 365 10.68 34
2015 365 9.74 37
2016 365 9.69 38
2017 365 9.70 38

Table5.________
Inventory Turnover
Year Cost of Goods Sold Ave. Inventory Inventory Turnover
2013 1,169,032.76 - #DIV/0!
2014 1,299,763.93 - #DIV/0!
2015 1,449,481.88 - #DIV/0!
2016 1,623,311.09 - #DIV/0!
 2017 1,823,425.82 - #DIV/0!

Table 5._____
Average Sale Period
Year Days in Year Inventory Turnover Days
2013 365 #DIV/0! #DIV/0!
2014 365 #DIV/0! #DIV/0!
2015 365 #DIV/0! #DIV/0!
2016 365 #DIV/0! #DIV/0!
2017 365 #DIV/0! #DIV/0!

Table 5._____
Asset Turnover
Year Net Sales Ave. Total asset Asset Turnover
2013 1,515,487.31 380,413.29 3.98
2014 1,887,157.41 435,663.66 4.33
2015 2,104,536.38 550,677.98 3.82
2016 2,356,923.04 677,709.08 3.48
2017 2,647,474.25 821,113.65 3.22

Table 5._______
Payback Period
Year Cost of Investment Annual Cash Inflow Balance
2013 300,000.00 236,063.35
2014
2015
2016
2017
Payback Period

Table 5.___
Break Even Volume Analysis
Year Fixed Cost Cont. Margin/ Unit Break Even Point
2013 194,619.73 4.93 39,498
2014 197,084.58 6.58 29,973
2015 199,992.57 6.43 31,084
2016 203,315.34 6.33 32,108
2017 207,031.17 6.25 33,128

Table 5.__
 Break Even Sales Analysis
Year Fixed Cost Cont. Margin %
2013 194,619.73 32.68% 595,499.33
2014 197,084.58 39.23% 502,435.31
2015 199,992.57 38.55% 518,817.34
2016 203,315.34 37.94% 535,870.85
2017 207,031.17 37.34% 554,508.50

Table 5.__
Break Even Selling Price per Unit
Year Fixed Cost per Unit Cont. Margin %
2013 1.93 32.68% 5.91
2014 1.75 39.23% 4.45
2015 1.58 38.55% 4.10
2016 1.44 37.94% 3.78
2017 1.31 37.34% 3.50

Table 5.___
Margin of Safety
Year Budgeted Sales Break Even Sales Margin of Safety
2013 1,515,487.31 595,499.33 919,987.99
2014 1,887,157.41 502,435.31 1,384,722.09
2015 2,104,536.38 518,817.34 1,585,719.03
2016 2,356,923.04 535,870.85 1,821,052.19
2017 2,647,474.25 554,508.50 2,092,965.75

Table 5._____
Margin of Safety Ratio
Year Margin of safety Budgeted Sales MOS Ratio
2013 919,987.99 1,515,487.31 60.71%
2014 1,384,722.09 1,887,157.41 73.38%
2015 1,585,719.03 2,104,536.38 75.35%
2016 1,821,052.19 2,356,923.04 77.26%
2017 2,092,965.75 2,647,474.25 79.06%

Table 5._____
Operating Leverage
Year Contribution Margin Net operating Income Operating Leverage
2013 496,678.81 227,731.28 2.18
2014 742,332.28 457,592.93 1.62
2015 813,529.95 518,174.19 1.57
2016 896,753.62 588,195.06 1.52
2017 991,235.85 668,664.64 1.48
Current Liabilities Quick Ratio
57,032.26 6.16
70,396.19 6.61
80,457.06 7.32
91,654.62 7.93
104,624.18 8.44
Ratio
10.18
13.37
14.01
14.60
15.08
Payback Period
1.27

1.27