4.

PROJECTED FINANCIAL STATEMENTS

HAPPY MUSHROOM

Pre-Operating Cash Flow

Cash Inflow:

Partners' Contribution:

Alano, Capital 400,000.00

Barretto, Capital 400,000.00

Brocales, Capital 400,000.00

Total Inflows 1,200,000.00

Cash Outflows

Factory Machineries and Equipment 47,723.21

Office Equipment 21,959.82

Office Furniture and Fixtures 12,187.50

Factory Furniture and Fixtures 5,714.29

Sales Equipment 28,508.93

Sales Furniture and Fixtures 5,401.79

Raw Materials Inventories 576,687.50

Office Supplies 1,105.36

Factory Supplies 52,829.46

Sales Supplies 1,234.38

Leasehold Improvements 35,892.86

Transportation vehicle 180,000.00

 Pre-operating Expense 72,445.00

Input Tax 113,995.13

Total Outflows 1,155,685.21

Net Cash Inflow (Working Capital) 44,314.79

HAPPY MUSHROOM

Pre-Operating Balance Sheet

ASSET

Current Asset

Cash 44,314.79

Raw Materials Inventories 576,687.50

Office Supplies 1,105.36

Sales Supplies 1,234.38

Factory Supplies 52,829.46

Prepaid Rent 22,000.00

Input Tax 113,995.13

Total Current Asset 812,166.61

Non-Current Asset

Rental Deposit 34,000.00

Factory Machineries and

47,723.21
Equipment

Equipment 105,040.18

Furniture and Fixtures 23,303.57

Delivery Vehicle 160,714.29

Leasehold Improvements 35,892.86

Total Non-Current Asset 406,674.11

Total Assets 1,218,840.71

PARTNERS' EQUITY

Partners' Equity

Indefenzo, Capital 400,000.00

Rocha, Capital 400,000.00

Zulueta, Capital 400,000.00 1,200,000.00

Less:

Organizational Cost 8,595.00

Pre-Operating Expenses 72,445.00 81,040.00

Total Partners' Equity 1,281,040.00

 HAPPY MUSHROOM

Statement of Cost of Goods Sold

Projected for 5 years

YEAR
PARTICULARS Schedule
1 2 3 4 5

Raw Materials, Beg. 7 576,687.50 225,596.25 213,661.12 222,022.68 232,891.67

Add: Purchase 17 1,679,275.00 1,911,014.95 2,006,565.70 2,106,893.98 2,212,238.68

Raw Materials 2,255,962.50 2,136,611.20 2,220,226.82 2,328,916.66 2,445,130.35

available for use

Less: Raw Material, 18 225,596.25 213,661.12 222,022.68 232,891.67 244,513.03

Ending

Raw Materials Used 18 2,030,366.25 1,922,950.08 1,998,204.14 2,096,025.00 2,200,617.31

Add: Direct Labor 19 246,000.00 246,000.00 246,000.00 246,000.00 246,000.00

Prime Cost 2,276,366.25 2,168,950.08 2,244,204.14 2,342,025.00 2,446,617.31

Add: Factory
Overhead

Electricity 20 99,000.00 103,950.00 109,147.50 114,604.88 120,335.12

Expense

Depreciation 21 11,219.64 11,219.64 11,219.64 11,219.64 11,219.64

Expense

Factory 22 296,027.68 355,233.21 426,279.86 511,535.83 613,842.99

Supplies

Indirect Labor 23 252,000.00 252,000.00 252,000.00 252,000.00 252,000.00

Repair & 24 4,052.50 4,174.08 4,299.30 4,428.28 4,561.12

Maintenance

Water Expense 25 3,600.00 3,780.00 3,969.00 4,167.45 4,375.82

Rent Expense 26 132,000.00 132,000.00 132,000.00 132,000.00 132,000.00

 SSS 28 13,702.80 13,702.80 13,702.80 13,702.80 13,702.80
Contributionn

Philhealth 28 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00

Contribution

Pag-ibig 28 3,720.00 3,720.00 3,720.00 3,720.00 3,720.00

Contribution

Total Factory 818,022.62 882,479.73 959,038.10 1,050,078.87 1,158,457.50

Overhead

Total 3,094,388.87 3,051,429.81 3,203,242.23 3,392,103.87 3,605,074.82

Manufacturing Cost

Add: Finished 154,719.44 160,307.46 168,177.48 178,014.07

Goods, Beg.

Total Goods 3,094,388.87 3,206,149.26 3,363,549.70 3,560,281.36 3,783,088.88

Available for Sale

Less: Finished 154,719.44 160,307.46 168,177.48 178,014.07 189,154.44

Goods, ending

Cost of Goods Sold 2,939,669.43 3,045,841.79 3,195,372.21 3,382,267.29 3,593,934.44

 HAPPY MUSHROOM

Statement of Recognized Income and Expense

Projected for 5 years

YEAR
PARTICULARS Notes
1 2 3 4 5

Gross Sales 15 5,310,602.68 7,518,515.63 9,136,797.99 10,975,615.51 13,171,884.41

Less: Cost of Goods 2,939,669.43 3,045,841.79 3,195,372.21 3,382,267.29 3,593,934.44

Sold

Gross Profit 2,370,933.25 4,472,673.83 5,941,425.78 7,593,348.23 9,577,949.97

Selling & 428,367.24 436,175.72 444,198.42 453,326.31 463,790.74

Less: Administrative
Expense

Income before 1,942,566.01 4,036,498.11 5,497,227.36 7,140,021.92 9,114,159.22

Income Tax

Income tax 582,769.80 1,210,949.43 1,649,168.21 2,142,006.58 2,734,247.77

Less:
(30%)

Net Income After 1,359,796.21 2,825,548.68 3,848,059.15 4,998,015.34 6,379,911.46

Tax
 HAPPY MUSHROOM

Statement Comprehensive Income

Projected for 5 years

PARTICULARS Notes YEAR

1 2 3 4 5

Gross Sales 15 5,310,602.68 7,518,515.63 9,136,797.99 10,975,615.51 13,171,884.41

Less: Cost of Goods

2,939,669.43 3,045,841.79 3,195,372.21 3,382,267.29 3,593,934.44
Sold

Gross Profit 2,370,933.25 4,472,673.83 5,941,425.78 7,593,348.23 9,577,949.97

Less: Selling &

Administrative 27 428,367.24 436,175.72 444,198.42 453,326.31 463,790.74
Expense

Income before
1,942,566.01 4,036,498.11 5,497,227.36 7,140,021.92 9,114,159.22
Income Tax

Less: Income tax

582,769.80 1,210,949.43 1,649,168.21 2,142,006.58 2,734,247.77
(30%)

Net Income After

1,359,796.21 2,825,548.68 3,848,059.15 4,998,015.34 6,379,911.46
Tax
 HAPPY MUSHROOM

Statement of Financial Position

Projected for 5 years

YEAR
PARTICULARS
1 2 3 4 5

ASSET

Current Asset

Cash

Raw Material Inventory 18 225,596 213,661 222,023 232,892 244,513

Finished Goods 154,719 160,307 168,177 178,014 189,154

Inventory

Unused Factory Supplies 22 32,892 39,470 47,364 56,837 68,204

Unused Office Supplies 27.2 217 227 239 251 263

Unused Sales Supplies 27.1 1,174 1,565 1,956 2,446 3,057

Total Current Assets 414,598 415,232 439,760 470,440 505,193

Non-Current Asset (net)

Machineries 29 90,526 76,012 61,4981 46,9843 32,470

Leasehold Improvements 30 30,964 26,035 21,107 16,178 11,250

Delivery Vehicle 31 140,625 120,535 100,446 80,357 60,267

Furniture & Fixture 19,053 14,803 10,553 6,303 2,053

Rental Deposit 56,000 56,000 56,000 56,000 56,000

Total Non-Current Asset 315,169 271,387 227,6056 183,823 140,041

Total Asset 729,767 686,619 667,365 654,263 645,235

LIABILITIES AND PARTNERS' EQUITY

Current Liabilities

SSS Contribution 49,062 49,062 49,062 49,062 49,062

Payable

Philhealth Contribution 10,200 10,200 10,200 10,200 10,200

Payable

Pag-ibig Contribution 4,920 4,920 4,920 4,920 4,920

Payable

VAT Payable

Total Current Liabilities 64,182 64,182 64,182 64,182 64,182

Partners' Equity

Alano, Capital 453,265 995,115 1,877,801 3,143,806 4,870,441

Barretto, Capital 453,265 995,114 1,877,801 3,143,806 4,870,441

Brocales, Capital 453,265 995,114 1,877,801 3,143,806 4,870,441

Total Partners' Equity 1,359,796 2,985,344 5,633,403 9,431,418 14,611,323

Total Liabilities and 1,423,978 3,049,526 5,697,585 9,495,600 14,675,505

Partners' equity
 STATEMENT OF PARTNER'S EQUITY

Year 1

Capital Alano Barretto Brocales Total

Original 400,000.00 400,000.00 400,000.00 1,200,000.00

Investment

Add: Net Income 453,265.40 453,265.40 453,265.40 1,359,796.21

Total Equity 853,265.40 853,265.40 853,265.40 2,559,796.21

Less: Withdrawal 400,000.00 400,000.00 400,000.00 1,200,000.00

Partner's Equity 453,265.40 453,265.40 453,265.40 1,359,796.21

End

Year 2

Capital Alano Barretto Brocales Total

Original 453,265.40 453,265.40 453,265.40 1,359,796.21

Investment

Add: Net Income 941,849.56 941,849.56 941,849.56 2,825,548.67

Total Equity 1,395,114.96 1,395,114.96 1,395,114.96 4,185,344.88

Less: Withdrawal 400,000.00 400,000.00 400,000.00 1,200,000.00

Partner's Equity 995,114.96 995,114.96 995,114.96 2,985,344.88

End
 Year 3

Capital Alano Barretto Brocales Total

Original 995,114.96 995,114.96 995,114.96 2,985,344.88

Investment

Add: Net Income 1,282,686.26 1,282,686.26 2,126,636.94 4,692,009.45

Total Equity 2,277,801.22 2,277,801.22 3,121,751.90 7,677,354.33

Less: Withdrawal 400,000.00 400,000.00 400,000.00 1,200,000.00

Partner's Equity 1,877,801.22 1,877,801.22 2,721,751.90 6,477,354.33

End

Year 4

Capital Alano Barretto Brocales Total

Original 1,877,801.22 1,877,801.22 2,721,751.90 6,477,354.33

Investment

Add: Net Income 1,666,004.95 1,666,004.95 1,666,004.95 4,998,014.84

Total Equity 3,543,806.16 3,543,806.16 4,387,756.85 11,475,369.18

Less: Withdrawal 400,000.00 400,000.00 400,000.00 1,200,000.00

Partner's Equity 3,143,806.16 3,143,806.16 3,987,756.85 10,275,369.18

End
 Year 5

Capital Alano Barretto Brocales Total

Original 3,143,806.16 3,143,806.16 3,987,756.85 10,275,369.18

Investment

Add: Net Income 2,126,635.03 2,126,635.03 2,126,635.03 6,379,905.08

Total Equity 5,270,441.19 5,270,441.19 6,114,391.87 16,655,274.25

Less: Withdrawal 400,000.00 400,000.00 400,000.00 1,200,000.00

Partner's Equity 4,870,441.19 4,870,441.19 5,714,391.87 15,455,274.25

End

5. Sources of Financing

To finance the early stages of the business, the proponents of the study
will first invest their personal cash of 400,000 each to have a total of
1,200,000 business capital. On the 6th year of operation the partnership will
borrow a term loan from Banco de Oro for expansion purposes like
purchasing new equipments to address production increase and construction
of new building.