POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 203

FINANCIAL
ASPECT
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 203

CHAPTER VI

FINANCIAL ASPECT

GENERAL FINANCIAL ASSUMPTIONS

Financial assumptions serve as basis and limitations in the preparation of

financial statements and they are as follows:

1. Initial Capital Requirement

a. The partners will contribute Php 10, 797, 262.16 each for an initial

investment totaling to Php 53,986,310.79.

b. The company will provide 20% approximate contingency fund and is

considered in working capital

2. Partnership Equity

a. Partners will divide profits equally among themselves. This will be added

to their financial accounts.

3. Property, Plant and Equipment

a. Acquisition of Machineries, Equipment, Furniture and Fixtures will be on

cash basis

b. In computing depreciation, Straight Line Method is used.

c. All depreciable assets will be depreciated according to its useful life. The

proponents assume that the assets have no salvage value.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 203

d. 80% of the total cost of machineries and equipment, furniture and

fixtures will be allocated to Cost of Sales and the remaining 20% will be

allocated to General and Administrative Expense

4. Supplies

a. Every year, all supplies will increase by 2%

b. 90% of service and office supplies purchases will be used annually

c. There will be no ending inventory for maintenance supplies

5. Purchases

a. Every year purchases of raw materials- Food and Beverages will

increased by 2%

b. Value –added tax is considered at a rate of 12%

c. 15% of purchases are made on account and is payable to suppliers after

30 days

6. Expenses

a. Value-added tax is considered at a rate of 12%

b. There will be no increase in telecommunications expense

c. Utilities, Advertising and Repair and Maintenance will increased by 2%

annually.

d. Repair and Maintenance will be 5% of the cost of each equipment

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 203

e. All expenses will be allocated 80% to Cost of Sales and 20% to General

and Administrative.

7. Labor and Employee Benefits

a. Total annual benefits will include the salary, SSS,Pag-ibig,

PhilHealth and 13th month pay based on their salary.

b. SSS, Pag-ibig, PhilHealth Contribution are based on the contribution

table provided by each government agency. There will be a fixed

contribution annually.

c. The computation of 13th month pay will be 100% of their monthly

salary and will increase by 2% annually.

SERVICE FACILITIES AND EQUIPMENT (Note 1)
Assumptions: Assets have no salvage value

Useful
Item Qty UOM Unit Cost Total Cost Annual Depreciation
Life
Air Conditioning Unit 2 pcs. 24,998.00 49,996.00 20 2,499.80
Automatic Hand Dryer 2 pcs. 2,473.20 4,946.40 5 989.28
Bar Sinks 2 pcs. 14,274.41 28,548.82 15 1,903.25
Can Opener 2 pcs. 249.00 498.00 5 99.60
Cash Register 1 pcs. 4296.64 4,296.64 10 429.66
Casserole 1 pcs. 954.81 954.81 5 190.96
CCTV 3 pcs. 1,399.00 4,197.00 15 279.80
Charging Dock 26 pcs. 453.00 11,778.00 10 1,177.80
Chopping Board (set of 4) 1 sets 599.00 599.00 10 59.90
Cork Board 2 pcs. 158.00 316.00 10 31.60
Colander 2 pcs. 320.00 640.00 10 64.00
Condiments Container
3 sets 699.00 2,097.00 15 139.80
with Organizer (set of 6)
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Cooking Brush
Countertop (set of 3)
Electric 1 sets 512.99 512.99 10 51.30
Griddle 1 pcs. 50,357.99 50,357.99 15 3,357.20
Countertop Fryer 1 pcs. 37,791.13 37,791.13 15 2,519.41
Debit Card Reader 1 pcs. 2387.02 2,387.02 15 159.13
Deep Slotted Spoon 2 pcs. 615.00 1,230.00 10 123.00
Digital Wall Clock 1 pcs. 654.00 654.00 15 43.60
Egg Frying Pan (7 Holes) 2 pcs. 1,294.40 2,588.80 15 172.59
Electric Fly Traps 1 pcs. 806.00 806.00 7 115.14
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Exhaust Fan 2 pcs. 1,220.00 2,440.00 15 162.67
Exhaust Hood System 1 pcs. 89,390.00 89,390.00 15 5,959.33
Fire Alarm 1 pcs. 1,700.00 1,700.00 10 170.00
Fire Alarm (B) 1 pcs. 3,500.00 3,500.00 15 233.33
Fire Extinguisher 3 pcs. 2,200.00 6,600.00 10 660.00
Fire Hose Cabinet with
1 pcs. 6,200.00 6,200.00 15 413.33
Accessories
Hand Sanitizer Dispenser 4 pcs. 199.00 796.00 10 79.60
Hand Soap Dispenser 3 pcs. 199.00 597.00 10 59.70
Heavy Duty Blender 3 pcs. 8,950.00 26,850.00 15 1,790.00
Ice Bucket with Tongs 5 pcs. 395.00 1,975.00 10 197.50
Ice Cream Cooler 1 pcs. 1,299.00 1,299.00 10 129.90
Ice Cream Scooper 3 pcs. 425.00 1,275.00 10 127.50
Ice Smashing Machine 1 pcs. 1,499.00 1,499.00 10 149.90
Juice Dispenser 3 pcs. 1,799.00 5,397.00 5 1,079.40
Kitchen Calculator 3 pcs. 350.00 1,050.00 5 210.00
Kitchen Knife Set 3 sets 1,045.00 3,135.00 10 313.50
Kitchen Towel Rack 2 pcs. 528.22 1,056.44 10 105.64
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Kitchen Weighing Scale 2 pcs. 1,184.62 2,369.24 10 236.92

LED Light 20 pcs. 133.81 2,676.20 5 535.24
LED TV 32" 2 pcs. 10,999.00 21,998.00 10 2,199.80
Measuring Spoon 3 pcs. 842.00 2,526.00 8 315.75
Mixing Bowl Set 3 pcs. 464.00 1,392.00 8 174.00
Paintings 2 pcs. 680.00 1,360.00 5 272.00
Pepper Mills 2 pcs. 185.00 370.00 7 52.86
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Pitcher 10 pcs. 279.00 2,790.00 7 398.57
Plastic Food Basket 111 pcs. 166.50 18,481.50 7 2,640.21
Puncher 2 pcs. 135.00 270.00 10 27.00
Refrigerator 1 pcs. 160,215.22 160,215.22 20 8,010.76
Rubber Stamp 2 pcs. 250.00 500.00 5 100.00
Salt and Pepper Shakers
3 sets 240.00 720.00 10 72.00
(set of 4)
Scissors 3 pcs. 25.00 75.00 5 15.00
Side Mount Prep Table 1 pcs. 106,304.25 106,304.25 10 10,630.43
Spatula 5 pcs. 599.75 2,998.75 7 428.39
Speaker 1 pcs. 1,320.00 1,320.00 10 132.00
Square Four Sided Grater 2 pcs. 282.00 564.00 10 56.40
Stainless Wall Shelves 5 pcs. 1,495.00 7,475.00 15 498.33
Stapler 2 pcs. 45.00 90.00 5 18.00
Tablet 26 pcs. 5,450.00 141,700.00 10 14,170.00
Tape Dispenser 2 pcs. 20.00 40.00 7 5.71
Tissue Dispenser 3 pcs. 399.00 1,197.00 10 119.70
Tissue Holder 30 pcs. 125.69 3,770.70 5 754.14
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Tongs (set of 3) 3 sets 410.00 1,230.00 10 123.00

Touch Screen Monitor 3 pcs. 10,486.92 31,460.76 10 3,146.08
Wall Clock 6 pcs. 399.00 2,394.00 20 119.70
WiFi Range Extender 1 pcs. 3,350.55 3,350.55 10 335.06
White Board 1 pcs. 299.00 299.00 10 29.90
TOTAL 879,892.21 71,865.10
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 ADMINISTRATIVE EQUIPMENT (Note 2)
Assumptions: Assets have no salvage value

Useful Annual
Item Qty UOM Unit Cost Total Cost
Life Depreciation
Air Conditioning Unit (B) 1 pcs. 2,473.20 2,473.20 10 247.32
Biometric Fingerprint
Attendance Time Clock
1 pcs. 1622.00 1,622.00 10 162.20
Employee Payroll
Recorder TCP/1P+USB
CCTV 1 pcs. 1,399.00 1,399.00 15 93.27
Computer 6 pcs. 11645.00 69,870.00 20 3,493.50
Internet Router 1 pcs. 3184.85 3,184.85 7 454.98
LED Light 3 pcs. 131.81 395.43 5 79.09
Printer 1 pcs. 2949.00 2,949.00 10 294.90
Wall Clock 2 pcs. 399.00 798.00 20 39.90
TOTAL 82,691.48 4,865.15

Furnitures and Fixtures (Note 3)

Assumptions: Assets have no salvage value
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Item Qty UOM Unit Cost Total Cost Useful Life Annual Depreciation
Chairs 17 pcs. 4,583.09 77,912.53 20 3,895.63
Filing Cabinet 1 pcs. 5300.00 5,300.00 15 353.33
Stainless Steel Table 2 pcs. 27,253.68 54,507.36 15 3,633.82
Table (4 seaters) 7 pcs. 4,196.88 29,378.16 15 1,958.54
Table (8 seaters) 4 pcs. 7,721.57 30,886.28 15 2,059.09
TOTAL 197,984.33 11,900.41
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SUMMARY OF DEPRECIATION
Assumptions: Allocation: 80% Cost of Sales, 20% General and Administrative

Acquisition ANNUAL DEPRECIATION

Description
Cost 2017 2018 2019 2020 2021
Service Facilities and
878,296.21 71,785.30 71,785.30 71,785.30 71,785.30 71,785.30
Equipment
Administrative Equipment 82,691.48 4,865.15 4,865.15 4,865.15 4,865.15 4,865.15
Furnitures and Fixtures 197,984.33 11,900.41 11,900.41 11,900.41 11,900.41 11,900.41
Total Annual Depreciation 88,550.86 88,550.86 88,550.86 88,550.86 88,550.86
Total Accumulated Depreciation 88,550.86 177,101.72 265,652.58 354,203.45 442,754.31
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
203
MAINTENANCE SUPPLIES (Note 4)
Assumptions: There will be no ending inventory

Item Qty UOM Unit Cost 2017 2018 2019 2020 2021
Broom 2 pcs. 119.99 239.98 244.78 249.68 254.67 259.76
Dishwashing Liquid 1
1 sets 2,800.00 2,800.00 2,856.00 2,913.12 2,971.38 3,030.81
Gallon (set of 5)
Dust Pan 2 pcs. 260.00 520.00 530.40 541.01 551.83 562.86
Easy Squeeze Mop 2 pcs. 346.90 693.80 707.68 721.83 736.27 750.99
Glass Window Cleaner 2 pcs. 219.00 438.00 446.76 455.70 464.81 474.11
Garbage Bag (400 pcs
5 rolls 605.00 3,025.00 3,085.50 3,147.21 3,210.15 3,274.36
per roll)
Hand Sanitizer 1 Gallon
5 sets 1,020.00 5,100.00 5,202.00 5,306.04 5,412.16 5,520.40
(set of 2)
Hand Soap 1 Gallon 3 pcs. 80.00 240.00 244.80 249.70 254.69 259.78
Heavy Duty Sponge
5 sets 360.00 1,800.00 1,836.00 1,872.72 1,910.17 1,948.38
Scrub (set of 12)
Kitchen Towel (set of
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

3 sets 494.43 1,483.29 1,512.96 1,543.21 1,574.08 1,605.56

10)
Odor Eluminator 4 pcs. 299.50 1,198.00 1,221.96 1,246.40 1,271.33 1,296.75
Pot Holders 10 pcs. 45.00 450.00 459.00 468.18 477.54 487.09
Tissue Roll (set of 48
200 sets 220.00 44,000.00 44,880.00 45,777.60 46,693.15 47,627.02
rolls)
Trash Can 3 pcs. 299.75 899.25 917.24 935.58 954.29 973.38
TOTAL 62,887.32 64,145.07 65,427.97 66,736.53 68,071.26
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OFFICE SUPPLIES (Note 5)
Assumptions: Every year, office supplies will increase by 2%
Every year, 90% of annual supplies purchases will be used

Annual Cost
Item Qty UOM Unit Cost
2017 2018 2019 2020 2021
Ballpen 50 pcs. 4.00 200.00 204.00 208.08 212.24 216.49
Binder 12 pcs. 59.00 708.00 722.16 736.60 751.34 766.36
Bond Paper (500 sheets) 5 pcs. 199.00 995.00 1,014.90 1,035.20 1,055.90 1,077.02
Carbon Paper 10 pcs. 3.25 32.50 33.15 33.81 34.49 35.18
Clearbook 10 pcs. 25.00 250.00 255.00 260.10 265.30 270.61
Columnar Pad 10 pcs. 29.00 290.00 295.80 301.72 307.75 313.91
Correction Tape 5 pcs. 34.00 170.00 173.40 176.87 180.41 184.01
Envelope 20 pcs. 4.00 80.00 81.60 83.23 84.90 86.59
Ink 2 pcs. 80.00 160.00 163.20 166.46 169.79 173.19
Logbook 4 pcs. 25.00 100.00 102.00 104.04 106.12 108.24
Paper Clip (box) 5 box 70.00 350.00 357.00 364.14 371.42 378.85
Scotch Tape 5 pcs. 25.00 125.00 127.50 130.05 132.65 135.30
Sign Pen 12 pcs. 34.50 414.00 422.28 430.73 439.34 448.13
Stamp Pad 2 pcs. 49.90 99.80 101.80 103.83 105.91 108.03
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Staple Wire 5 pcs. 20.00 100.00 102.00 104.04 106.12 108.24

White Board Eraser 1 pcs. 15.00 15.00 15.30 15.61 15.92 16.24
White Board Marker (set of 8) 1 sets 79.00 79.00 80.58 82.19 83.84 85.51
TOTAL 4,168.30 4,251.67 4,336.70 4,423.43 4,511.90
Supplies inventory, beg. 416.83 800.31 1,153.95 1,480.90
Supplies used 3,751.47 3,451.35 3,182.75 2,942.53 2,727.90
Supplies inventory,end. 416.83 800.31 1,153.95 1,480.90 1,784.00
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SERVICE SUPPLIES (Note 6)
Assumptions: Every year, service supplies will increase by 2%
Every year, 90% of annual supplies purchases will be used

Annual Cost
Item Qty UOM Unit Cost
2017 2018 2019 2020 2021
Apron 5 pcs. 149.00 745.00 759.90 775.10 790.60 806.41
Chef Clothing 5 pcs. 799.00 3,995.00 4,074.90 4,156.40 4,239.53 4,324.32
Cork Pin (box) 5 box 10.00 50.00 51.00 52.02 53.06 54.12
Disposable Paper Cups (80pcs.
7455 packs 105.03 782,998.65 798,658.62 814,631.80 830,924.43 847,542.92
per pack)
Disposable Plastic
Flatwares(Spoon, Fork, Knife) 19880 packs 187.14 3,720,343.20 3,794,750.06 3,870,645.07 3,948,057.97 4,027,019.13
30pcs. of each per pack
Kitchen Heat Resistant Gloves 5 pairs 496.00 2,480.00 2,529.60 2,580.19 2,631.80 2,684.43
Propane Gas Tank 500 Gallon 1 pcs. 38,144.66 38,144.66 38,907.55 39,685.70 40,479.42 41,289.01
Tissue Napkin (set of 48 packs) 200 sets 200.00 40,000.00 40,800.00 41,616.00 42,448.32 43,297.29
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Uniform 8 pcs. 300.00 2,400.00 2,448.00 2,496.96 2,546.90 2,597.84

Wax Paper 500 count (pack of 99 packs 2,158.35 213,676.65 217,950.18 222,309.19 226,755.37 231,290.48
12) TOTAL 4,804,833.16 4,900,929.82 4,998,948.42 5,098,927.39 5,200,905.94
Supplies inventory, beg. 480,483.32 922,527.97 1,330,170.01 1,707,045.75
Supplies used 4,324,349.84 3,978,401.86 3,668,778.41 3,391,881.64 3,144,474.17
Supplies inventory,end. 480,483.32 922,527.97 1,330,170.01 1,707,045.75 2,056,431.77
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PRE-OPERATING COSTS (Note 7) ORGANIZATION COSTS (Note 8)

Installation of Utilities Description Unit Costs

Electricity 4,500.00 BIR Registration) 115.00
Water 5,500.00 Barangay Clearance 540.00
Internet 1,000.00 DTI 500.00
Expert and Advisors consultation fee 8,500.00 Mayor’s Permit / Business Permit 400.00
Research and Planning Costs 1,000.00 SEC Registration 765.00
Program/ Application Development Fee 200,000.00
SSS Employer's Registration 500.00
Building Cost plus Labor 319,186.37
PhilHealth Employer's Registration 315.00
Pag-ibig Employer's Registration 315.00
TOTAL 539,686.37
Locational Clearance/Zoning Permit 300.00
Fire Permit 4,300.00
Sanitary Permit 1,660.00
Business Plate 150.00
Inspection Fee 200.00
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Electrical Permit 2,800.00

Plumbing Permit 1,550.00
Mechanical Permit 500.00
Menro Certificate 100.00
TOTAL 15,010.00
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ANNUAL SALARIES (Note 9)
Assumption: Every year, salaries will increased by 1.1%

Description Qty Monthly Salary 2017 2018 2019 2020 2021

Service Personnel
Operations Manager 1 Php 30,500.00 366,000.00 370,026.00 374,096.29 378,211.35 382,371.67
Head Chef 1 Php 16,000.00 192,000.00 194,112.00 196,247.23 198,405.95 200,588.42
Linecooks 3 Php 13,000.00 468,000.00 473,148.00 478,352.63 483,614.51 488,934.27
Preparation 3 Php 13,000.00 468,000.00 473,148.00 478,352.63 483,614.51 488,934.27
Cashier 1 Php 10,000.00 120,000.00 121,320.00 122,654.52 124,003.72 125,367.76
SUB-TOTAL 7 1,614,000.00 1,631,754.00 1,649,703.29 1,667,850.03 1,686,196.38
General and Administrative Personnel
General Manager 1 Php 50,000.00 600,000.00 606,600.00 613,272.60 620,018.60 626,838.80
Offi ce Staff 1 Php 14,000.00 168,000.00 169,848.00 171,716.33 173,605.21 175,514.86
Maintenance Offi cer 1 Php 14,000.00 168,000.00 169,848.00 171,716.33 173,605.21 175,514.86
Sales and Marketing Manager 1 Php 20,000.00 240,000.00 242,640.00 245,309.04 248,007.44 250,735.52
Sales Representative 1 Php 16,000.00 192,000.00 194,112.00 196,247.23 198,405.95 200,588.42
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Security Offi cer 1 Php 8,000.00 96,000.00 97,056.00 98,123.62 99,202.98 100,294.21
SUB-TOTAL 11 1,464,000.00 1,480,104.00 1,496,385.14 1,512,845.38 1,529,486.68

GRAND TOTAL 18 3,078,000.00 3,111,858.00 3,146,088.44 3,180,695.41 3,215,683.06

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13th Month Pay (Note 10)
Assumption: 13 month pay will be 100% of the their monthly salary
It will increase by 2% annually

Monthly
Description QTY 2017 2018 2019 2020 2021
Salary

Service Personnel
Operations Manager 1 30,500.00 30,500.00 31,110.00 31,732.20 32,366.84 33,014.18
Head Chef 1 16,000.00 16,000.00 16,320.00 16,646.40 16,979.33 17,318.91
Linecooks 3 13,000.00 13,000.00 13,260.00 13,525.20 13,795.70 14,071.62
Preparation 3 13,000.00 13,000.00 13,260.00 13,525.20 13,795.70 14,071.62
Cashier 1 10,000.00 10,000.00 10,200.00 10,404.00 10,612.08 10,824.32
SUB-TOTAL 7 82,500.00 84,150.00 85,833.00 87,549.66 89,300.65

Monthly
Description QTY 2017 2018 2019 2020 2021
Salary
General and Administrative Personnel
General Manager 1 50,000.00 50,000.00 51,000.00 52,020.00 53,060.40 54,121.61
Offi ce Staff 1 14,000.00 14,000.00 14,280.00 14,565.60 14,856.91 15,154.05
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Maintenance Offi cer 1 14,000.00 14,000.00 14,280.00 14,565.60 14,856.91 15,154.05

Sales and Marketing Manager 1 20,000.00 20,000.00 20,400.00 20,808.00 21,224.16 21,648.64
Sales Representative 1 16,000.00 16,000.00 16,320.00 16,646.40 16,979.33 17,318.91
Security Offi cer 1 8,000.00 8,000.00 8,160.00 8,323.20 8,489.66 8,659.46
SUB-TOTAL 11 122,000.00 124,440.00 126,928.80 129,467.38 132,056.72

GRAND TOTAL 18 204,500.00 208,590.00 212,761.80 217,017.04 221,357.38

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SSS, PhilHealth and Pag-ibig Contributions (2017-2021)
*SSS,PhilHealth and Pag-ibig contribution are based on the contribution table provided by each government agency

SSS PHILHEALTH PAG-IBIG TOTAL

Description Quantity Monthly Salary
ER EE EC ER EE ER EE ER EE
Service Personnel
Operations Manager 1 Php 30,500.00 14,144.40 6,975.60 120.00 1200 1200 1200 1200 16,664.40 9,375.60
Head Chef 1 Php 16,000.00 14,144.40 6,975.60 120.00 1200 1200 1200 1200 16,664.40 9,375.60
Linecooks 3 Php 13,000.00 22,984.80 11,335.20 240.00 2400 2400 2400 2400 28,024.80 16,135.20
Preparation 3 Php 13,000.00 22,984.80 11,335.20 240.00 2400 2400 2400 2400 28,024.80 16,135.20
Cashier 1 Php 10,000.00 8,840.40 4,359.60 120.00 1200 1200 1200 1200 11,360.40 6,759.60
SUB-TOTAL 7 83,098.80 40,981.20 840.00 8,400.00 8,400.00 8,400.00 8,400.00 100,738.80 57,781.20

SSS PHILHEALTH PAG-IBIG TOTAL

Description Quantity Monthly Salary
ER EE EC ER EE ER EE ER EE
General and Administrative Personnel
General Manager 1 Php 50,000.00 14,144.40 6,975.60 120.00 1200 1200 1200 1200 16,664.40 9,375.60
Office Staff 1 Php 14,000.00 12,375.60 6,104.40 120.00 1200 1200 1200 1200 14,895.60 8,504.40
Maintenance Officer 1 Php 14,000.00 12,375.60 6,104.40 120.00 1200 1200 1200 1200 14,895.60 8,504.40
Sales and Marketing Manager 1 Php 20,000.00 14,144.40 6,975.60 120.00 1200 1200 1200 1200 16,664.40 9,375.60
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Sales Representative 1 Php 16,000.00 14,144.40 6,975.60 120.00 1200 1200 1200 1200 16,664.40 9,375.60
Security Officer 1 Php 8,000.00 7,071.60 3,488.40 120.00 1200 1200 1200 1200 9,591.60 5,888.40
SUB-TOTAL 11 74,256.00 36,624.00 720.00 7,200.00 7,200.00 7,200.00 7,200.00 89,376.00 51,024.00

GRAND TOTAL 18 157,354.80 77,605.20 1,560.00 15,600.00 15,600.00 15,600.00 15,600.00 190,114.80 108,805.20
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BREAKDOWN OF EXPENSES
UTILITIES
Assumption: Cost of utilities will increased by 2% annually
Allocation: 80%- COS, 20%- Gen and Admin
2017 2018 2019 2020 2021

Electricity Expense 320,560.42 326,971.62 333,511.06 340,181.28 346,984.90

Water Expense 37,092.00 37,833.84 38,590.52 39,362.33 40,149.57
Waste Disposal 8,000.00 8,160.00 8,323.20 8,489.66 8,659.46
Sub-Total 365,652.42 372,965.46 380,424.77 388,033.27 395,793.93
VAT 43,878.29 44,755.86 45,650.97 46,563.99 47,495.27
Total 321,774.13 328,209.61 334,773.80 341,469.28 348,298.66

TELECOMMUNICATIONS EXPENSE
Assumption: There will be no increase in telecommunication expense
Vat is 12%
Allocation: 80%- COS, 20%- Gen and Admin
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Price 2017 2018 2019 2020 2021

Internet 4,000.00 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
Free Installation Fee + Server 82,284.00 82,284.00 82,284.00 82,284.00 82,284.00 82,284.00
Sub-Total 130,284.00 130,284.00 130,284.00 130,284.00 130,284.00
VAT 15,634.08 15,634.08 15,634.08 15,634.08 15,634.08
Total 114,649.92 114,649.92 114,649.92 114,649.92 114,649.92
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REPAIR AND MAINTENANCE EXPENSE
Assumption: Repair and Maintenance will be 5% of the cost of equipment and will increase by 2% annually (Tablet is excluded)
VAT is 12%
Allocation: 80%- COS, 20%- Gen and Admin

Descripton TOTAL COST 2017 2018 2019 2020 2021

Machines and Equipment- Restaurant 878,296.21 43,914.81 44,793.11 45,688.97 46,602.75 47,534.80
Machines and Equipment-Administration 82,691.48 4,134.57 4,217.27 4,301.61 4,387.64 4,475.40
Ordering System 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
SUB-TOTAL 98,049.38 99,010.37 99,990.58 100,990.39 102,010.20
VAT 11,765.93 11,881.24 11,998.87 12,118.85 12,241.22
Total 86,283.46 87,129.13 87,991.71 88,871.54 89,768.98

ADVERTISING EXPENSE
Assumption: Advertising expense will increase by 2% annually
VAT is 12%
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Description 2017 2018 2019 2020 2021

Promotional Posters and Flyers 10,000.00 10,200.00 10,404.00 10,612.08 10,824.32
VAT 1,200.00 1,224.00 1,248.48 1,273.45 1,298.92
Total Advertising Expense 8,800.00 8,976.00 9,155.52 9,338.63 9,525.40
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PURCHASES
Assumption: The increase in volume of purchases will depend in the increase of consumption/demand per year
Every year, purchases of Raw materials- Food and Beverages will increase by 2% annually
Value-added tax is considered at a rate of 12%
15% of purchases are made on account and is payable to suppliers after 30 days

2017 2018 2019 2020 2021

Purchases- Food 37,926,186.53 38,684,710.26 39,443,233.99 40,201,757.73 40,960,281.46
Gross Purchases 37,926,186.53 38,684,710.26 39,443,233.99 40,201,757.73 40,960,281.46
VAT 4,063,519.99 4,144,790.39 4,226,060.79 4,307,331.18 4,388,601.58
Cost of Purchases 33,862,666.55 34,539,919.88 35,217,173.21 35,894,426.54 36,571,679.87

Accounts Payable 5,688,927.98 5,802,706.54 5,916,485.10 6,030,263.66 6,144,042.22

Cash Purchases 32,237,258.55 32,882,003.72 33,526,748.90 34,171,494.07 34,816,239.24

Click 'n Eat

BREAKDOWN OF INPUT VAT PAYABLE
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

PARTICULARS 2017 2018 2019 2020 2021

Utilities 43,878.29 44,755.86 45,650.97 46,563.99 47,495.27
Telecommunication Expense 15,634.08 15,634.08 15,634.08 15,634.08 15,634.08
Repair and Maintenance 11,765.93 11,881.24 11,998.87 12,118.85 12,241.22
Advertising 1,200.00 1,224.00 1,248.48 1,273.45 1,298.92
Purchases- Raw Materials 4,063,519.99 4,144,790.39 4,226,060.79 4,307,331.18 4,388,601.58
TOTAL INPUT VAT PAYABLE 4,135,998.28 4,218,285.57 4,300,593.19 4,382,921.55 4,465,271.08
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SALES
Assumption: Value-added tax is considered at a rate of 12%

2017 2018 2019 2020 2021

Sales- Food 89,791,936.35 131,833,762.12 177,375,617.16 226,417,501.48 278,959,415.08
Gross Sales 89,791,936.35 131,833,762.12 177,375,617.16 226,417,501.48 278,959,415.08
VAT 9,620,564.61 14,125,045.94 19,004,530.41 24,259,018.02 29,888,508.76
Net of VAT Sales 80,171,371.74 117,708,716.18 158,371,086.75 202,158,483.47 249,070,906.32

Output VAT 9,620,564.61 14,125,045.94 19,004,530.41 24,259,018.02 29,888,508.76

Input VAT 4,135,998.28 4,218,285.57 4,300,593.19 4,382,921.55 4,465,271.08
VAT Payable 5,484,566.33 9,906,760.38 14,703,937.22 19,876,096.46 25,423,237.68

Annual Insurance Expense (2017-2021)

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

2017 2018 2019 2020 2021

Public Liability Insurance 287,580.00 287,580.00 287,580.00 287,580.00 287,580.00
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CONTRACT TERMS:

Start Date:
Cost per sq.m.: 1,000.00
Sq. meters: 150
Monthly Rental: 150,000.00

Monthly Rent 2017 2018 2019 2020 2021

Rent Expense 150,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
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Summary of Cost of Sales and General and Administrative

2017 2018 2019 2020 2021

Cost of Sales
Cost of Purchases 33,862,666.55 34,539,919.88 35,217,173.21 35,894,426.54 36,571,679.87
Depreciation- Service Facilities and Equipment 57,428.24 57,428.24 57,428.24 57,428.24 57,428.24
Depreciation- Administrative Equipment 3,892.12 3,892.12 3,892.12 3,892.12 3,892.12
Depreciation- Furnitures and Fixtures 9,520.33 9,520.33 9,520.33 9,520.33 9,520.33
Rent Expense 1,440,000.00 1,440,000.00 1,440,000.00 1,440,000.00 1,440,000.00
Repair and Maintenance 78,439.51 79,208.30 79,992.46 80,792.31 81,608.16
Salaries and Wages 1,614,000.00 1,631,754.00 1,649,703.29 1,667,850.03 1,686,196.38
SSS, Philhealth, PAG-IBIG Contributions 100,738.80 100,738.80 100,738.80 100,738.80 100,738.80
13th Month Pay 82,500.00 84,150.00 85,833.00 87,549.66 89,300.65
Service Supplies Used 4,324,349.84 3,978,401.86 3,668,778.41 3,391,881.64 3,144,474.17
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Telecommunications 104,227.20 104,227.20 104,227.20 104,227.20 104,227.20

Utility Expense 292,521.93 298,372.37 304,339.82 310,426.62 316,635.15
TOTAL 41,970,284.52 42,327,613.09 42,721,626.88 43,148,733.49 43,605,701.07
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 2017 2018 2019 2020 2021
General and Administrative
Salaries and Wages 1,464,000.00 1,480,104.00 1,496,385.14 1,512,845.38 1,529,486.68
SSS, Philhealth, PAG-IBIG Contributions 89,376.00 89,376.00 89,376.00 89,376.00 89,376.00
13th Month Pay 122,000.00 124,440.00 126,928.80 129,467.38 132,056.72
Rent Expense 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00
Depreciation- Service Facilities and Equipment 14,357.06 14,357.06 14,357.06 14,357.06 14,357.06
Depreciation- Administrative Equipment 973.03 973.03 973.03 973.03 973.03
Depreciation- Furnitures and Fixtures 2,380.08 2,380.08 2,380.08 2,380.08 2,380.08
Repair and Maintenance 19,609.88 19,802.07 19,998.12 20,198.08 20,402.04
Insurance Expense 287,580.00 287,580.00 287,580.00 287,580.00 287,580.00
Offi ce Supplies Used 3,751.47 3,451.35 3,182.75 2,942.53 2,727.90
Utility Expense 73,130.48 74,593.09 76,084.95 77,606.65 79,158.79
Telecommunication Expense 26,056.80 26,056.80 26,056.80 26,056.80 26,056.80
Pre-Operating Expense 539,686.37 - - - -
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Organization Costs 15,010.00 - - - -

TOTAL 3,017,911.17 2,483,113.49 2,503,302.73 2,523,782.99 2,544,555.10
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PROJECT COST

Acquisition of Fixed Asssets

Service Facilities and
879,892.21
Equipment (Note 1)
Administrative Equipment (Note 2) 82,691.48
Furnitures and Fixtures (Note 3) 197,984.33
Maintenance Supplies (Note 4) 62,887.32
Office Supplies (Note 5) 4,168.30
Service Supplies (Note 6) 4,804,833.16
Pre-operating Expense (Note 7) 539,686.37 6,572,143.17

Working Capital
Building Rental 1,800,000.00
Cash Purchases 32,237,258.55
Salaries and Wages 1,614,000.00
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SSS, Philhealth, PAG-IBIG

100,738.80
Contributions
13th Month Pay 82,500.00
Utilities 292,521.93
Repair and Maintenance 78,439.51
Telecommunication Expense 104,227.20 36,309,685.99
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 General and Administrative Expense
Advertising Expense 10,000.00
Salaries and Wages 1,464,000.00
Repair and maintenance 19,609.88
SSS, Philhealth,
PAG-IBIG 89,376.00
Contributions
Insurance Expense 287,580.00
13th Month Pay 122,000.00
Utilities 73,130.48
Telecommunication Expense 26,056.80
Organization Cost (Note 8) 15,010.00 2,106,763.16

TOTAL 44,988,592.33

Contingency Fund (20%) 8,997,718.47

TOTAL COST OF INVESTMENTS 53,986,310.79
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SOURCE OF FUNDS

Datoy, Ma. Ruth G. 10,797,262.16

Husenia, Jeny Lou C. 10,797,262.16
Precilla, Junna Marie G. 10,797,262.16
Sotelo, Janica A. 10,797,262.16
Terrible, Shaira Zena D. 10,797,262.16
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C OMP AR A T IV E C OS T OF IN C OME S T AT E ME N T
F o r th e Y ears E n d ed D ec emb er 31, 2017-2021
2017 2018 2019 2020 2021
C as h S ales 80,171,371.74 117,708,716.18 158,371,086.75 202,158,483.47 249,070,906.32
L es s : C O S 41,970,284.52 42,327,613.09 42,721,626.88 43,148,733.49 43,605,701.07
G ros s P rofit 38,201,087.22 75,381,103.08 115,649,459.87 159,009,749.98 205,465,205.25
L es s : O perating E xpens es
Advertis ing E xpens e 10,000.00 10,200.00 10,404.00 10,612.08 10,824.32
D eprec iation- S ervic e F ac ilities and
14,357.06 14,357.06 14,357.06 14,357.06 14,357.06
E quipment
D eprec iation- Adminis trative
973.03 973.03 973.03 973.03 `
E quipment
D eprec iation-F urnitures and F ixtures 2,380.08 2,380.08 2,380.08 2,380.08 2,380.08
R ent E xpens e 360,000.00 360,000.00 360,000.00 360,000.00 360,000.00
Ins uranc e E xpens e 287,580.00 287,580.00 287,580.00 287,580.00 287,580.00
O rganiz ation C os t 15,010.00 - - - -
P re-operating E xpens e 539,686.37 - - - -
Utilities 73,130.48 74,593.09 76,084.95 77,606.65 79,158.79
T elec ommunic ation E xpens e 26,056.80 26,056.80 26,056.80 26,056.80 26,056.80
R epair and Maintenanc e E xpens e 19,609.88 19,802.07 19,998.12 20,198.08 20,402.04
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

S upplies Us ed 3,751.47 3,451.35 3,182.75 2,942.53 2,727.90

S alaries and W ages 1,464,000.00 1,480,104.00 1,496,385.14 1,512,845.38 1,529,486.68
S S S , P hilhealth, P AG -IB IG
89,376.00 89,376.00 89,376.00 89,376.00 89,376.00
C ontributions
13th Month P ay 122,000.00 124,440.00 126,928.80 129,467.38 132,056.72
T otal O perating E xpens e 3,027,911.17 2,493,313.49 2,513,706.73 2,534,395.07 2,554,406.40
Ne t Inc ome be fore tax 35,173,176.04 72,887,789.59 113,135,753.14 156,475,354.91 202,910,798.86
Inc ome tax expens e(30% ) 10,551,952.81 21,866,336.88 33,940,725.94 46,942,606.47 60,873,239.66
Ne t Inc ome 24,621,223.23 51,021,452.71 79,195,027.19 109,532,748.44 142,037,559.20
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PARTNERS' CAPITAL
Assumption:
Every Year, net income will be equally distributed among partners

YEAR PARTICULARS Datoy, Ma. Ruth G. Husenia, Jeny Lou C. Precilla, Junna Marie G. Sotelo, Janica A. Terrible, Shaira Zena D. TOTAL
2017 Beginning Balance (Ini ti a l Contri buti on) 10,797,262.16 10,797,262.16 10,797,262.16 10,797,262.16 10,797,262.16 53,986,310.79
Share in net income 4,924,244.65 4,924,244.65 4,924,244.65 4,924,244.65 4,924,244.65 24,621,223.23
Ending Balance 15,721,506.80 15,721,506.80 15,721,506.80 15,721,506.80 15,721,506.80 78,607,534.02

2018 Beginning Balance 15,721,506.80 15,721,506.80 15,721,506.80 15,721,506.80 15,721,506.80 78,607,534.02

Share in net income 10,204,290.54 10,204,290.54 10,204,290.54 10,204,290.54 10,204,290.54 51,021,452.71
Ending Balance 25,925,797.35 25,925,797.35 25,925,797.35 25,925,797.35 25,925,797.35 129,628,986.73

2019 Beginning Balance 25,925,797.35 25,925,797.35 25,925,797.35 25,925,797.35 25,925,797.35 129,628,986.73

Share in net income 15,839,005.44 15,839,005.44 15,839,005.44 15,839,005.44 15,839,005.44 79,195,027.19
Ending Balance 41,764,802.79 41,764,802.79 41,764,802.79 41,764,802.79 41,764,802.79 208,824,013.93

2020 Beginning Balance 41,764,802.79 41,764,802.79 41,764,802.79 41,764,802.79 41,764,802.79 208,824,013.93

Share in net income 21,906,549.69 21,906,549.69 21,906,549.69 21,906,549.69 21,906,549.69 109,532,748.44
Ending Balance 63,671,352.47 63,671,352.47 63,671,352.47 63,671,352.47 63,671,352.47 318,356,762.36
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

2021 Beginning Balance 63,671,352.47 63,671,352.47 63,671,352.47 63,671,352.47 63,671,352.47 318,356,762.36

Share in net income 28,407,511.84 28,407,511.84 28,407,511.84 28,407,511.84 28,407,511.84 142,037,559.20
Ending Balance 92,078,864.31 92,078,864.31 92,078,864.31 92,078,864.31 92,078,864.31 460,394,321.57
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Statement of Changes in Partners' Capital

2017 2018 2019 2020 2021

Balance at beginning of year - 78,607,534.02 129,628,986.73 208,824,013.93 318,356,762.36

Partners' initial capital contribution 53,986,310.79 - - - -
Net Income 24,621,223.23 51,021,452.71 79,195,027.19 109,532,748.44 142,037,559.20
Balance at end of year 78,607,534.02 129,628,986.73 208,824,013.93 318,356,762.36 460,394,321.57
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
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COMPARATIVE STATEMENT OF CASH FLOW
For the Years Ended December 31, 2017-2021

2017 2018 2019 2020 2021

CASH FLOWS FROM OPERATING ACTIVITIES
Net income/Loss 24,621,223.23 51,021,452.71 79,195,027.19 109,532,748.44 142,037,559.20
Add/ (Deduct)
Depreciation-Service Facilities and
Equipment 71,785.30 71,785.30 71,785.30 71,785.30 71,785.30
Depreciation-Administrative Equipment 4,865.15 4,865.15 4,865.15 4,865.15 4,865.15
Depreciation-Furnitures and Fixtures 11,900.41 11,900.41 11,900.41 11,900.41 11,900.41
Increase/(Decrease) in Accounts Payable 5,688,927.98 113,778.56 113,778.56 113,778.56 113,778.56
Increase/(Decrease) in Income Tax Payable 10,551,952.81 11,314,384.06 12,074,389.06 13,001,880.53 13,930,633.19
Increase/(Decrease) in VAT Payable 5,484,566.33 4,422,194.05 4,797,176.85 5,172,159.24 5,547,141.22
Increase/(Decrease) in Service Supplies
Inventory (480,483.32) (442,044.65) (407,642.05) (376,875.74) (349,386.02)
Increase/(Decrease) in Offi ce Supplies
Inventory (416.83) (383.48) (353.64) (326.95) (303.10)
Net Cash from Operating Activies 45,954,321.06 66,517,932.11 95,860,926.84 127,531,914.94 161,367,973.91

CASH FLOWS FROM INVESTING ACTIVITIES

Service Facilities and Equipment (878,296.21) - - - -
Administrative Equipment (82,691.48) - - - -
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Furnitures and Fixtures (197,984.33) - - - -

Net Cash from Investment Acivities (1,158,972.02)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from partner's initial capital
53,986,310.79
contribution - - - -
Net Cash from Financing Acivities 53,986,310.79 - - - -

NET INCREASE/(DECREASE) IN CASH 98,781,659.84 66,517,932.11 95,860,926.84 127,531,914.94 161,367,973.91

Cash at beginning of year 0 98,781,659.84 165,299,591.95 261,160,518.79 388,692,433.73
CASH AT THE END OF YEAR 98,781,659.84 165,299,591.95 261,160,518.79 388,692,433.73 550,060,407.64
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COMPARATIVE STATEMENT OF BALANCE SHEET
For the Years Ended December 31, 2017-2021

2017 2018 2019 2020 2021

Assets
Current Assets
Cash 98,781,659.84 165,299,591.95 261,160,518.79 388,692,433.73 550,060,407.64
Service Supplies Inventory 480,483.32 922,527.97 1,330,170.01 1,707,045.75 2,056,431.77
Office Supplies Inventory 416.83 800.31 1,153.95 1,480.90 1,784.00
Total Current Assets 99,262,559.98 166,222,920.23 262,491,842.76 390,400,960.38 552,118,623.41
Non-Current Assets
Service Facilities and Equipment 878,296.21 878,296.21 878,296.21 878,296.21 878,296.21
Administrative Equipment 82,691.48 82,691.48 82,691.48 82,691.48 82,691.48
Furnitures and Fixtures 197,984.33 197,984.33 197,984.33 197,984.33 197,984.33
Less: Accumulated Depreciation 88,550.86 177,101.72 265,652.58 354,203.45 442,754.31
Total Non- Current Assets 1,070,421.16 981,870.30 893,319.44 804,768.57 716,217.71

TOTAL ASSETS 100,332,981.14 167,204,790.53 263,385,162.19 391,205,728.96 552,834,841.12

Liabilities and Partner's Equity

Current Liabilities
Accounts Payable 5,688,927.98 5,802,706.54 5,916,485.10 6,030,263.66 6,144,042.22
Income Tax Payable 10,551,952.81 21,866,336.88 33,940,725.94 46,942,606.47 60,873,239.66
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

VAT Payable 5,484,566.33 9,906,760.38 14,703,937.22 19,876,096.46 25,423,237.68

Total Current Liabilities 21,725,447.12 37,575,803.79 54,561,148.26 72,848,966.59 92,440,519.56

TOTAL LIABILITIES 21,725,447.12 37,575,803.79 54,561,148.26 72,848,966.59 92,440,519.56

Partner's Equity 78,607,534.02 129,628,986.73 208,824,013.93 318,356,762.36 460,394,321.57

Total Partners' Equity 78,607,534.02 129,628,986.73 208,824,013.93 318,356,762.36 460,394,321.57

TOTAL LIABILITIES AND

100,332,981.14 167,204,790.53 263,385,162.19 391,205,728.96 552,834,841.12
PARTNER'S CAPITAL
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PAYBACK PERIOD
PAYBACK
COST OF INVESTMENT
YEAR NET INCOME BALANCE YEARS
TO BE RECORDED
REQUIRED
2017 53,986,310.79 24,621,223.23 29,365,087.56 1
2018 29,365,087.56 51,021,452.71 (21,656,365.15) 1
2019 (21,656,365.15) 79,195,027.19 (100,851,392.35) -0.27
2020 (100,851,392.35) 109,532,748.44 (210,384,140.78)
2021 (210,384,140.78) 142,037,559.20 (352,421,699.98)
PAYBACK PERIOD 1.73 YEARS

Computation for average total assets

Asset Beginning Asset Ending Average Total Asset

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

- 100,332,981.14 100,332,981.14
100,332,981.14 167,204,790.53 133,768,885.83
167,204,790.53 263,385,162.19 215,294,976.36
263,385,162.19 391,205,728.96 327,295,445.58
391,205,728.96 552,834,841.12 472,020,285.04
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COMPARATIVE FINANCIAL RATIO ANALYSIS
For the Years Ended December 31, 2017-2021
2017 2018 2019 2020 2021
PROFITABILITY
Rate of Return on Investments 0.46 0.95 1.47 2.03 2.63
Net Income 24,621,223.23 51,021,452.71 79,195,027.19 109,532,748.44 142,037,559.20
Costs of Investments 53,986,310.79 53,986,310.79 53,986,310.79 53,986,310.79 53,986,310.79
Rate of Return on Assets 0.25 0.38 0.37 0.33 0.30
Net Income 24,621,223.23 51,021,452.71 79,195,027.19 109,532,748.44 142,037,559.20
Average Total Assets 100,332,981.14 133,768,885.83 215,294,976.36 327,295,445.58 472,020,285.04
Rate of Return on Sales 0.31 0.43 0.50 0.54 0.57
Net Income 24,621,223.23 51,021,452.71 79,195,027.19 109,532,748.44 142,037,559.20
Net Sales 80,171,371.74 117,708,716.18 158,371,086.75 202,158,483.47 249,070,906.32
Asset Turnover 0.80 0.88 0.74 0.62 0.53
Net Sales 80,171,371.74 117,708,716.18 158,371,086.75 202,158,483.47 249,070,906.32
Average Total Assets 100,332,981.14 133,768,885.83 215,294,976.36 327,295,445.58 472,020,285.04
LIQUIDITY OR SHORT-TERM SOLVENCY
Current Ratio 4.57 4.42 4.81 5.36 5.97
Current Assets 99,262,559.98 166,222,920.23 262,491,842.76 390,400,960.38 552,118,623.41
Current Liabilities 21,725,447.12 37,575,803.79 54,561,148.26 72,848,966.59 92,440,519.56
Current Assets to Total Assets 0.99 0.99 1.00 1.00 1.00
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Current Assets 99,262,559.98 166,222,920.23 262,491,842.76 390,400,960.38 552,118,623.41

Total Assets 100,332,981.14 167,204,790.53 263,385,162.19 391,205,728.96 552,834,841.12
STABILITY OR LONG-TERM SOLVENCY
Debt to Equity Ratio 0.28 0.29 0.26 0.23 0.20
Total Liabilities 21,725,447.12 37,575,803.79 54,561,148.26 72,848,966.59 92,440,519.56
Owner's Equity 78,607,534.02 129,628,986.73 208,824,013.93 318,356,762.36 460,394,321.57
Proprietary / Equity Ratio 0.78 0.78 0.79 0.81 0.83
Owner's Equity 78,607,534.02 129,628,986.73 208,824,013.93 318,356,762.36 460,394,321.57
Total Assets 100,332,981.14 167,204,790.53 263,385,162.19 391,205,728.96 552,834,841.12
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NET PRESENT VALUE
Average Annual Cash Inflows (based on 5 years Projections)

Year Annual Cash Inflows

2017 45954321.06
2018 66517932.11
2019 95860926.84
2020 127531914.9
2021 161367973.9
Total 497233068.9
Average 99446613.77
Computation of PV Factor:
Desired Rate of Return = 10%
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

No. of years (n) = 5

PV of an annuity of 1 in 5years = (1-1.10^-5)
0.10
PV Factor = 3.79079
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 Present Value of Cash Inflows = Annual Cash Inflows x PV Factor
= 99,446,613.77 x 3.79079
Present Value of Cash Inflows = 376,980,907.76
NET PRESENT VALUE = Present Value - Total Cost of Investment
= 376,980,907.76 - 53,986,310.79
NET PRESENT VALUE = 322,994,596.96

PROFITABILITY INDEX
= Total Present Value of Cash Inflow
Total Cost of Investment

= 376,980,907.76
53,986,310.79
PROFITABILITY INDEX = 6.982898113
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

RESULT: Accept the poposal since:

Payback period lies within the specified timeframe
NVP is Positive
PI is greater than 1
203