Projected Income State

Five­Year Period

YEAR 1
Net Sales 1,680,000.00
Less: Cost of Goods Sold 1,446,938.00
Gross Profit 233,062.00
Less: Operating Expenses 6,000.00
Net Income before Tax 227,062.00
Less: Income Tax 68,118.60
Net Income after Tax 158,943.40

68,118.60

Projected Balance Sh
Five­Year Period

ASSETS
Current Assets
Cash 108,839.00
Inventory 158,351.00
Total Current Assets 267,190.00

Non-current Assets
Property, Plant and Equipment 39,872.00
Total Non-current Assets 39,872.00

Total Assets 307,062.00

Liabilities
Current Liabilities 68,118.60
Total Liabilities 68,118.60

OWNER'S EQUITY
Beginning Owner's Equity 80,000.00
Add: Net Income 158,943.40
Ending Owner's Equity 238,943.40

Total Liabilities & Owner's Equity 307,062.00

 0.00

Projected Cah Flow
Five­Year Period

CASH FLOW FROM OPERATING ACTIVITIES

Net Income 158,943.40
Add: Depreciation 6,218.00
Less: Increase in Inventory 158,351.00
Add: increase Liabilities 68,118.60
Add: Prepayments 21,734.00
Net Cash Provided / Used by in Operating Activities

CASH FLOW FROM INVESTING ACTIVITIES

Investment on Time Deposits
Net Cash Provided / Used by in Investing Activities

CASH FLOW FROM FINANCING ACTIVITY

Cash flow from Owner
Net Cash Provided / Used by in Financing Activity

Increase (Decrease) in Cash 96,663.00

Add: Cash Beginning 12,176.00
Cash, Balance 108,839.00
ected Income Statement
Five­Year Period

YEAR 2 YEAR 3 YEAR 4

1,848,000.00 2,032,800.00 2,236,080.00
1,583,510.00 1,733,364.20 1,897,810.07
264,490.00 299,435.80 338,269.93
6,000.00 73,000.00 79,000.00
258,490.00 226,435.80 259,269.93
77,547.00 67,930.74 77,780.98
180,943.00 158,505.06 181,488.95

9,428.40 -9,616.26 9,850.24

ojected Balance Sheet
Five­Year Period

290,442.98 429,105.19 608,614.68

173,336.42 189,781.01 207,828.71
618,886.20 816,443.39

33,654.00 27,436.00 21,218.00

33,654.00 27,436.00 21,218.00
463,779.40
497,433.40 646,322.20 837,661.39

77,547.00 67,930.74 77,780.98

77,547.00 67,930.74 77,780.98

238,943.40 419,886.40 578,391.46

180,943.00 158,505.06 181,488.95
419,886.40 578,391.46 759,880.41

497,433.40 646,322.20 837,661.39

 0.00 0.00 0.00

Projected Cah Flow
Five­Year Period

180,943.00 158,505.06 181,488.95

6,218.00 6,218.00 6,218.00
14,985.42 16,444.59 18,047.70
9,428.40 -9,616.26 9,850.24

181,603.98 138,662.21 179,509.49

108,839.00 290,442.98 429,105.19
290,442.98 429,105.19 608,614.68
YEAR 5
2,459,688.00
2,078,287.09
381,400.91
85,600.00
295,800.91
88,740.27
207,060.64

10,959.29

813,644.65
227,036.67
1,040,681.32

15,000.00
15,000.00

1,055,681.32

88,740.27
88,740.27

759,880.41
207,060.64
966,941.05

1,055,681.32
 0.00

207,060.64
6,218.00
19,207.96
10,959.29

205,029.97
608,614.68
813,644.65
Schedule 1 Sales Forecast

Year 1
Total Demand Per Day 200.00
Days Per Year 240.00
Annual Demand 48,000.00

Schedule 2 Sales Per Year

Year 1
Annual Demand 48,000.00
Price Per Unit 35.00
Sales 1,680,000.00
less: Sales Discount 2% 33,600.00
Net Sales 1,680,000.00

Schedule 3 Manufacturing Cost

Direct Materials 1,290,720.00

Manufacturing Overhead 5%
Supplies 128,400.00
Utilities 21,600.00
Depreciation 6,218.00
Total Manufacturing COST 1,446,938.00
Annual Production In Units 48,000.00

Unit Product Cost 30.14

Schedule 4 Cost of Good Sold/Per Year and

Required Materials Purchase

YEAR 1
Annual Demands 48,000.00
Cost Per Unit 30.14
Cost of Good Solds 1,446,938.00
required end. Raw materials
10% of next year COGS 158,351.00
Total Raw material Purchase 1,605,289.00

158,351.00
Schedule 5 Operating Expenses

Permit and Licenses 3,000.00

Advertising 3,000.00
Salaries expense
total selling expense 6,000.00

Schedule 6 Depreciation (property, plant, equipment) Cost

Building 30,000.00
Machine 590.00
Furniture and Fixture 10,000.00
Equipment 5,500.00
TOTAL

Schedule 7 Book Value (PPE)

YEAR 1
Building 30,000.00
Machine 590.00
Furniture and Fixture 10,000.00
Equipment 5,500.00
Total 46,090.00
Less: Acc. Depreciation 6,218.00
Book Value 39,872.00

Schedule 8 Income Tax

Income Before Tax 227,062.00

Income Tax Rate 30%
Income Tax 68,118.60
Year 2 Year 3 Year 4
52,800.00 58,080.00 63,888.00
35.00 35.00 35.00
1,848,000.00 2,032,800.00 2,236,080.00
36,960.00 40,656.00 44,721.60
1,848,000.00 2,032,800.00 2,236,080.00

1,419,792.00 1,561,771.20 1,717,948.32

134,820.00 141,561.00 148,639.05

22,680.00 23,814.00 25,004.70
6,218.00 6,218.00 6,218.00
1,583,510.00 1,733,364.20 1,897,810.07
52,800.00 58,080.00 63,888.00

29.99 29.84 29.71

YEAR 2 YEAR 3 YEAR 4

52,800.00 58,080.00 63,888.00
29.99 29.84 29.71
1,583,510.00 1,733,364.20 1,897,810.07

173,336.42 189,781.01 207,828.71

1,756,846.42 1,923,145.21 2,105,638.78

14,985.42 16,444.59 18,047.70

 3,000.00 3,000.00 3,000.00
3,000.00 10,000.00 10,000.00
60,000.00 66,000.00
6,000.00 73,000.00 79,000.00

Useful life Depreciation

10.00 3,000.00
5.00 118.00
5.00 2,000.00
5.00 1,100.00
6,218.00

YEAR 2 YEAR 3 YEAR 4

30,000.00 30,000.00 30,000.00
590.00 590.00 590.00
10,000.00 10,000.00 10,000.00
5,500.00 5,500.00 5,500.00
46,090.00 46,090.00 46,090.00
12,436.00 18,654.00 24,872.00
33,654.00 27,436.00 21,218.00

258,490.00 226,435.80 259,269.93

30% 30% 30%
77,547.00 67,930.74 77,780.98
Year 5 Year 6 Year 7
70,276.80 77304.48 85034.928
35.00 35 35
2,459,688.00 2705656.8 2976222.48
49,193.76 54113.136 59524.4496
2,459,688.00 2705656.8 2976222.48

1,889,743.15 2,078,717 2,286,589

156,071.00 163874.552625 172068.28025625

26,254.94 27567.68175 28946.0658375
6,218.00 207 207
2,078,287.09 2,270,367 2,487,811
70,276.80 77304.48 85034.928

29.57 29.3691478369 29.2563375842

YEAR 5 YEAR 6 YEAR 7

70,276.80 77304.48 85034.928
29.57 29.3691478369 29.2563375842
2,078,287.09 2270366.701575 2487810.56001375

227,036.67 248781.056001375 0
2,305,323.76 2519147.75757638 2487810.56001375

19,207.96 21744.385843875
 3,000.00
10,000.00
72,600.00
85,600.00

YEAR 5
30,000.00
590.00
10,000.00
5,500.00
46,090.00
31,090.00
15,000.00

295,800.91
30%
88,740.27
TOTAL PROJECT COST- HOT BITES

Fixed Assets/ Capital investments

Building 30000.00
Machine 590.00
Furniture and Fixture 10000.00
Equipments 5500.00

Sub Total 46090.00

Pre-Operating/ Operating Expenses

Permit and Licenses 3000.00
Purchases- Raw Material 16134.00
Factory Supplies 600.00
Advertising 2000.00

Sub Total 21734.00

CASH REQUIREMENT 12176.00

TOTAL PROJECT COST 80000.00

ASSUMPTIONS
1. Annual production will be equal to the total demand per year and will increase by
2. All revenues are on cash basis.
3. Overhead will increase by 5% every year except for depreciation.
4. The depreciation was computed through the straight line methods where the cost is
5. Operating expenses will increase by 5% every year except for rent, advertising, pe
6. tax rate is based on corporate income tax of the Philippines which is 30%.
and will increase by 10% every year.

ods where the cost is over the useful life.

rent, advertising, permits and licenses expenses.
which is 30%.
Computation for Payback period

Outstanding cash to
Year Net income
be recovered

80,000
1 158,943 -78,943
2 180,943 -259,886
3 158,505 -418,391
4 181,489 -599,880
5 207,061 -806,941

3 years and 1
Payback period
month

Return on Equity

Return on Equity = Net income

Average owners Equity

Return on Equity = 177,388.21

592,808.54

Return on Equity = 30%

Return on Investment

Return on Investment = Net income

Project cost

Return on Investment = 177,388.21

80,000.00

Return on Investment = 222%

 886,941
177388.2097

2,964,042.72
592808.5439