Projected Cash Flow

Startup Expenses and Capitalization

The projected cash flow to start a company are mainly in these four areas: startup
legal and accounting fees, engineering laboratory equipment and supplies, machinery
and fixtures and contingency for the startup period.

Startup Legal and Accounting Fees

Legal Fees:
Business Permits ₱150,000
License to Manufacture ₱200,000
License to Sell ₱250,000
TOTAL LEGAL FEE: ₱600,000

Engineering and Laboratory Equipment

Raw Materials:
Round bar ₱1,902.8
Square Tube ₱4,382.1
Angle Profile ₱3,808.4
sheet metal ₱1,300.65
Steel tube ₱500.00
bearing ₱635.00
strip ₱3,500.00
wooden base ₱100.00
sheet metal ₱500.00
3 mm sheet steel ₱1,307.95
5 mm sheet steel ₱1,350.00
6 mm sheet steel ₱5,000
6 mm sheet steel ₱1,400.00
hexagon bar ₱2,500.00
mesh ₱1,000.00
oven ₱15,000.000
PID Controller ₱5,471.25
SSR ₱1,255.00
Thermocouple ₱500.00
Power switch ₱905.35
LED indicator ₱1,906.85
Powercord ₱3,937.10
Bandheater ₱1,065.60
motor ₱1,400.00
3D Printer ₱42,847.00
TOTAL COST OF RAW MATERIALS: ₱103,474.65
 Equipment Cost:
Drill ₱1,884.00
Welding Machine ₱22,250.00
Steel Grinder ₱10,000.00
Steel Cutter ₱15,000
TOTAL EQUIPMENT COST: ₱49,134.00
TOTAL MANUFACTURING CAPITAL: ₱152,608.65

Factory Overhead
Rent ₱150,000.00
Utilities
Water ₱1,500.00
Electricity ₱24,000.00
TOTAL FIXED COST: ₱175,500.00

Marketing and Labor Cost

Labor Cost ₱400,000.00
Posters ₱40,000
TOTAL MARKETING AND LABOR COST: ₱440,000.00

 TOTAL STARTUP COST:

Total Startup Cost = Total legal fee + Total manufacturing capital + Total fixed cost + Total
marketing cost + Contingency Plan

Total Sartup Cost = ₱600,000 + ₱152,608.65 + ₱175,500.00 + ₱440,000.00

+₱150,000.00

=₱1,518,108.65