Financial Plan

A. Total projected cost

Cost*
20,000.00
Equipment:
Steel drum 500.00
Fish bucket (6 @ P250.00) 1,500.00
Pail (2 @ P40.00) 80.00
Bamboo basket (2 @ P150.00) 300.00
Sprayer 120.00
Smoking tray (9 @ P70.00) 630.00
Smokehouse 3,600.00
Weighing scale 655.00
Calculator 150.00
Working table 900.00
Spraying table 300.00
Total Cost of Equipment 8,735.00
Supplies - production:
Sawdust (P10.00 per sack) 2,160.00
Newspaper (P0.20 per page) 1,080.00
Total Cost of Supplies production 3,240.00
Supplies office
Ballpen (P6.00 per piece) 36.00
Notebook (P10.00 per piece) 20.00
Logbook (P60.00 per piece) 60.00
Total Cost of Supplies office 116.00
Raw material/Ingredient:
Fresh Galunggong (30 kg. @ P100.00 per kg.) 3,000.00
Salt 90.00
Food color 10.20
Total Cost of Raw Material 3,100.20
Total Projected Cost 35,191.20
Table V, A
Stall Cost

Stall 4000

Equipment
Siopao Steamer 2,199.98
Gas Stove 5,048.00
Rice Cooker 3,000.00
Pan 1,600.00
Pot 1,200.00
Mixing Bowl 2,250.00
Kitchen table 10,000.00
Refrigerator 14,000.00
Cash register 7,500.00
Exhaust Fan 2,739.75
Trash bin 2,400.00
Kitchen Sink 4,500.00
Microwave Oven 9,000.00
Total Cost or Equipment
 *The price of the building is an estimated cost that will include a deep well that will be a
source of water and a septic tank to be constructed as a requirement for the waste disposal
plan for liquid waste.
*The prices of steel drum, fish bucket, pail and sprayer are all from the Cabanatuan city
public market.
*The price for the construction of 3 units of smokehouse is based on the interview from
the worker of tinapahan in Brgy.Tabuating, San Leonardo, Nueva Ecija.
*The spraying table is a table made from bamboo. It has enough length and width to
properly arrange the fishes and spray food color to it. The price of the spraying table is from the
sellers of bamboo products in Burgos Ext, Cabanatuan city near McDonalds.
**The prices bamboo basket and smoking tray are also from the the sellers of bamboo
products in Burgos Ext, Cabanatuan city near McDonalds.
*The working table will be two mono-block tables that will be placed together and serve
as an area for packaging the finish goods its price is from Cabanatuan city public market.
*The prices of weighing scale and calculator are all from the Cabanatuan city public
market.
*The price of saw dust that will be used as a source of fire is P10.00 per sack and the
price of the newspaper that will be used as a wrapper for the finished good is P20.00 per kilo,
the prices are from the Cabanatuan city public market. The supplies for production are good for
one year.
*The prices of the ballpen, notebook and logbook are from the Cabanatuan city public
market. The supplies for office are good for one year.
*The price of the galunggong fish is P100.00 per kilogram and 1 kilogram consist of 8
fishes based from the interview to the fish vendor in the Cabanatuan city public market.
*Salt is P300.00 per sack and 1 sack of salt weighs 50 kilograms. The price of the food
coloring is P85.00 per 500 grams. Prices of both salt and food color is from the Cabanatuan city
public market.

B. Sources of Financing
Owners equity
Short-term creditors
Long-term creditors
 C. Projected Financial Statement
1. Projected Cash Flow statement

Camp Tinapahan
Cash Flow
Year 1 Year 2 Year 3
Operating Activities
et income 256,275 278,421 301,952
dd: Depreciation Expense 1,874 1,874 1,874
(91,800 (96,390
ayment of Withdrawals ) ) (101,210)
183,90
tal Cash Generated (Used) in Operating Activities 166,348 4 202,6
Investing Activities
(20,000
urchase of Building ) 0 0
urchase of Equipment (8,735) 0 0
(28,735
tal Cash Generated (Used) in Investing Activities ) 0
Financing Activities
ash receipts for loan payable - Cash 20,000 0 0
ash receipts for loan payable - Building 20,000 0 0
ayment of loan - Cash (4,000) (4,000) (4,000)
ayment of Loan - Building (4,000) (4,000) (4,000)
tal Cash Generated (Used) in Financing Activities 32,000 (8,000) (8,00
175,90
tal Cash Generated (Used) 169,613 4 194,6
169,61
dd: Beginning, Cash 0 3 345,5
345,51
nding, Cash 169,613 7 540,1
Table V, C.1

2. Projected Income Statement

Camp Tinapahan
Income Statement
Year 1 Year 2 Year 3
Sales 1,836,000 1,927,800 2,024,190
Cost of Goods Sold (1,116,072) (1,171,876) (1,230,469)
Gross Profit 719,928 755,924 793,721
Operating Expense
Depreciation Expese 1,874 1,874 1,874
Supplies Expense 3,240 3,337 3,437
Office Supplies Expense 116 116 116
Light and Water Expense 8,424 (13,654) 8,677 (14,003) 8,937 (14,364)
Operating Income 706,275 741,921 779,357
Salaries and Administrative Expense (450,000) (463,500) (477,405)
Net Income before Tax 256,275 278,421 301,952
Tax (30% of net income) (76,882) (83,526) (90,586)
Net Income after Tax 179,392 194,895 211,366
Table V, C.2

3. Projected Balance sheet

Camp Tinapahan
Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Asset
Cash 169,613 345,517 540,133
Total Current Asset 169,613 345,517 540,133
Non-current Asset
Building - net 19,000 18,000 17,000
Equipment - net 7,862 6,988 6,115
Total Non-current Asset 26,862 24,988 23,115
Total Asset 196,475 370,505 563,248
Liabilities and Equity
Liability
Non-current Liability
Loan Payable - Cash 16,000 12,000 8,000
Loan Payable - Building 16,000 12,000 8,000
Total Non-current Liability 32,000 24,000 16,000
 Total Liability 32,000 24,000 16,000
Equity
Owner's Equity 164,475 346,505 547,248
Total Equity 164,475 346,505 547,248
Total Liabilities and Equity 196,475 370,505 563,248
Table V, C.3

4. Statement of Owners Equity

Camp Tinapahan
Statement of Owners' Equity
Year 1 Year 2 Year 3

Beginning, Balance 0 164,475 346,505

Add: Net income 256,275 278,421 301,952

Less: Withdrawal (5% of Annual Sales) 91,800 96,390 101,210

Ending, Balance 164,475 346,505 547,248

Table V, C.4
 D. Profitability Indices

1. ROI

Net income
ROI = x 100
Total Assets

256,275
ROI=
93,875

ROI=273

This indicates that the profitability of the business is very good

because net income is relatively higher than the total assets or

investment. Return on investment measures efficiency of the firm in

managing all assets, as the result shows the firm is very efficient in

managing assets and generating profit. Thus, a good sign of prosperity of

the business.

2. Payback period

Net cost of Initial Investment

Payback Period =
Annual Net Cash Inflow

35,191.20
Payback Period =
169,613

Payback Period=0.2072months15 days

The payback period, measures the length of time required to

recover the amount of initial investment. The payback period of the

business is short indicating that the business is a less risky project and
 has the capacity to recover the amount of investment in a short period of

time.

3. Net income : Sales Ratio

Net income : Sales Ratio

179,392 : 1,836,000

0.097 : 1

The net income : sales ratio, measures income generated after

consideration of all expenses and revenue. The result indicates that for

every 1peso sales there is a 0.097 net income.

4. Break Even Point

Total
Breakeven point ( per kilogram )= Cost
Contribution Margin per unit

458,400
Breakeven point ( per kilogram )=
66.36

Breakeven point ( per kilogram )= 6,907.78 kilograms

Break even point is the level of sales volume where total revenue and total

expenses are equal, that is, neither profit nor loss. Thus, the break even point is

6,907.78 kilograms of Tinapa.

E. List of Assumptions Used

1. All the sales are on cash basis.
2. All the expenses are paid on the year incurred.
3. The sales increase at 5% annually.
4. The expenses increase by 3% annually.
5. Production Growth 1.021%.
6. The tax rate is at 30% annually.
7. The useful life of equipment is 10 years.
 8. The useful life of the building is 20 years
9. Supplies and Raw Materials are increase annually at 3%.
10. Loan for cash is payable within 5 years, annually.
11. Loan for building is payable within 5 years, annually.
12. Withdrawal 5% of annual sales.
13. One year is equal to three hundred sixty days.
F. Schedules
Projected Sales and Sales Volume

Quantity Unit Cost Total Sales

Per Month 900kg. P170.00 P153,000.00
Per Year 10,800kg. P170.00 P1,836,000.00

Production Schedule

Month Production (Kg.)

January 900
February 900
March 900
April 900
May 900
June 900
July 900
August 900
September 900
October 900
November 900
December 900

Projected Cost

Cost
Building 20,000.00
Equipment:
Steel drum 500.00
 Fish bucket (6 @ P250.00) 1,500.00
Pail (2 @ P40.00) 80.00
Bamboo basket (2 @ P150.00) 300.00
Sprayer 120.00
Smoking tray (9 @ P70.00) 630.00
Smokehouse 3,600.00
Weighing scale 655.00
Calculator 150.00
Working table 900.00
Spraying table 300.00
Total Cost of Equipment 8,735.00
Supplies - production:
Sawdust (P10.00 per sack) 2,160.00
Newspaper (P0.20 per page) 1,080.00
Total Cost of Supplies - production 3,240.00
Supplies - office
Ballpen (P6.00 per piece) 36.00
Notebook (P10.00 per piece) 20.00
Logbook (P60.00 per piece) 60.00
Total Cost of Supplies - office 116.00
Raw material/Ingredient:
Fresh Galunggong (30 kg. @ P100.00 per kg.) 3,000.00
Salt 90.00
Food color 10.20
Total Cost of Raw Material 3,100.20
Total Projected Cost 35,191.20

Depreciation Schedule

Useful life Depreciation Book

Cost
(years) Expense value
Building 20,000 20 1,000
Year 1 20,000 1,000 19,000
Year 2 19,000 1,000 18,000
Year 3 18,000 1,000 17,000
Year 4 17,000 1,000 16,000
Year 5 16,000 1,000 15,000
Year 6 15,000 1,000 14,000
Year 7 14,000 1,000 13,000
Year 8 13,000 1,000 12,000
Year 9 12,000 1,000 11,000
Year 10 11,000 1,000 10,000
Year 11 10,000 1,000 9,000
Year 12 9,000 1,000 8,000
Year 13 8,000 1,000 7,000
Year 14 7,000 1,000 6,000
Year 15 6,000 1,000 5,000
Year 16 5,000 1,000 4,000
Year 17 4,000 1,000 3,000
Year 18 3,000 1,000 2,000
Year 19 2,000 1,000 1,000
Year 20 1,000 1,000 0

Useful life Depreciation Book

Cost
(years) Expense Value
Equipment 8,735 10 874
Year 1 8,735 874 7,862
Year 2 7,862 874 6,988
Year 3 6,988 874 6,115
Year 4 6,115 874 5,241
Year 5 5,241 874 4,368
Year 6 4,368 874 3,494
Year 7 3,494 874 2,621
Year 8 2,621 874 1,747
Year 9 1,747 874 874
Year 10 874 874 0

Production Cost per kilogram

Direct Cost Cost (in Php)

Fresh Fish (1kg.) 100.00
Salt (500g.) 3.00
Food color (2g.) 0.34
Newspaper ( piece) 0.10
Labor (P250 / 30kg. x 5 workers) 41.67
Total Direct cost 145.11
 Indirect Cost
Electricity (P600 / 30kg. / 30 days) 0.67
Water (P100 / 30kg. / 30 days) 0.11
Sawdust (1kg.) 0.20
Total Indirect cost 0.98
Production Cost
Direct cost 130.11
Indirect cost 0.98
Estimated Production cost per kilogram 146.09

Raw material / Ingredient Requirement (per kilogram)

Unit price per kilo Total Price (in

Ingredients Quantity
(in Php) Php)
1. Galunggong Fish 1 kilogram 100 100
2. Salt 0.50 kilogram 6 3.00
3. Food Coloring 0.002 kilogram 170 0.34
103.34

Projected Administrative Expense

Annuall
Position Daily Weekly Monthly
y
Manager/Bookkeeper P1,750. P7,500. P90,000.
P250.00
00 00 00
Production P1,000. P7,000. P30,000 P360,00
worker/Distributor 00 00 .00 0.00