CHAPTER 5

FINANCIAL STUDY

Total Projected Cost

FIXED COST
Furniture and Fixtures ₱ 3,850.00
Machine and Equipment 30,000.00
Land 35,000.00
Building 48,000.00
TOTAL FIXED COST ₱ 116,850.00
Working Capital:
Payroll ₱ 132,000.00
Marketing Expenses 14,000.00
Waste Disposal 6,000.00
Utilities 6,150.00
Permit and Licenses 11,000.00
Production Cost 35,220.00
Office Supplies 1,155.00
TOTAL WORKING CAPITAL ₱ 205,525.00
PRE-OPERATING CAPITAL 15,000.00
TOTAL PROJECTED COST ₱ 190,525.00

Sources of Financing

The partners agreed to contribute an equal sharing of

capital in amount of ₱ 20,000.00 each.

INITIAL CAPITAL REQUIREMENTS

Partners Ratio Invested Amount
Ivanh Aznar 20% ₱ 20,000.00
Harvey Carlos 20% ₱ 20,000.00
Cedess Gonzales 20% ₱ 20,000.00
Cess Hernandez 20% ₱ 20,000.00
Zai Laurio 20% ₱ 20,000.00
TOTAL 100% ₱ 100,000.00
Financial Assumptions

1. The projected sales in tourist will increase at 5% yearly

based on their sales volume.

2. Payroll increase at 2% annually.
3. The operating expenses will increase at 5% annually.
4. The permit and license also increase by 5% annually.
5. Allowance for repair and maintenance for fixed assets cost

5,000 annually.
6. Marketing expense will increase at 5% annually.