A

FINANCIAL REPORT OF

VIGOROSO DE MUEBLES COMPANY

SUBMITTED BY:

ABM205

SUBMITTED TO:

MRS. CATHERINE TARUN

February 28, 2018

Financial Report

COMPANY BUDGET

Type Fixed Cost Monthly Expenses Other Expenses

Operational PHP 448,506.50 PHP 1,964.00

Budget

Raw Materials PHP 104,080.00

Administration PHP 33,925.65 PHP 14,099.00

Budget

Marketing Budget PHP 356,928.51

Other Expenses PHP 85,400.00 PHP 2,500.00

Total PHP 839,360.66 PHP 205,503.00 PHP 2,500.00

OPERATIONAL BUDGET

Type Price Per Unit Quantity Total Amount

Claw Hammer PHP 190.00 3 pcs. PHP 570.00

(Wooden Handle)

Cushion Grip PHP 370.00 1 Set PHP 370.00

Screwdriver [4
pcs/set (65-199)]

Tape measure PHP 50.00 2 pcs. PHP 100.00

(3m/10 feet long)
 Handsaw (18”) PHP 200.00 2 pcs. PHP 400.00

Electric Drill PHP 600.00 1 pc. PHP 600.00

Paint Brush PHP 20.00 2 pc. PHP 40.00

Roller PHP 40.00 4 pcs. PHP 160.00

Office Equipment PHP 172,541.00

Office Supplies PHP 8,892.50

Furnitures PHP 91,797.00

Delivery Truck PHP 175,000.00 1 pc. PHP 175,000.00

Total PHP 450,470.50

OFFICE EQUIPMENT

Type Price Per Unit Quantity Amount

Multi-function Printer PHP 15,950.00 1 pc. PHP 15,950.00

Computer PHP 14,995.00 9 sets PHP 134,955.00

Stand Fan PHP 7,995.00 1 pc. PHP 7,995.00

Air Conditioner PHP 10,995.00 1 pc PHP 10,995.00

Clock PHP 248.00 1 pc PHP 248.00

Water Dispenser PHP 1,199.00 2 pcs. PHP 2,398.00

Total PHP 172,541.00

 OFFICE SUPPLIES

Type Price Per Unit Quantity Amount

Panda ball pen PHP 120.00 1 boxes of 25 pcs. PHP 120.00

(Black)
STABILO PHP 2,270.00 1 pack of 48 PHP 2,270.00
Highlighter Pen assorted pens
PILOT Permanent PHP 250.00 2 boxes of 12 PHP 500.00
Marker - Broad Pieces
(Black)
MONGOL Pencil PHP 84.00 2 boxes of 12 PHP 168.00
no. 2 Pieces
TM Pencil PHP 295.00 2 Pieces PHP 590.00
Sharpener – Desk
type
ADVANCE Bond PHP 110.00 1 Reams PHP 110.00
Paper (Long)
ADVANCE Bond PHP 90.00 1 Reams PHP 90.00
Paper (Short)
File Folder (White) PHP 4.50 20 Pieces PHP 90.00
– Long
File Folder (White) PHP 3.50 20 Pieces PHP 70.00
– Short
Envelope (Brown) PHP 2.50 20 Pieces PHP 50.00
– Long
Envelope (Brown) PHP 2.00 20 Pieces PHP 40.00
– Short
Envelope Payroll PHP 195.00 1 Box PHP 195.00

BEIFA Bulldog Clip PHP 42.00 5 Dozen PHP 210.00

1–½“
PRINCE Paper Clip PHP 6.00 10 Boxes PHP 60.00
(Small)
PRINCE Paper Clip PHP 14.00 10 Boxes PHP 140.00
(Big)
Paper Fastener PHP 48.00 2 Boxes PHP 96.00
Metal – Acro
MAX Stapler PHP 45.00 6 Boxes PHP 270.00

SNOWMAN Staple PHP 7.50 6 Pieces PHP 45.00

Remover
MAX Staple Wire PHP 60.00 3 Boxes PHP 180.00

JOY Ruler (Plastic) PHP 10.00 2 Pieces PHP 20.00

HBW Scissors 6.5” PHP 85.00 3 Pieces PHP 255.00

- Metal
UK Tape PHP 50.00 2 Pieces PHP 100.00
Dispenser
Packaging Tape PHP 50.00 2 Roll PHP 100.00

Correction Tape PHP 30.00 6 Pieces PHP 180.00

EVERYDAY Stamp PHP 39.00 6 Bot PHP 234.00

Pad Ink (Black)
 JOY Stamp Pad PHP 25.00 6 Bot PHP 150.00
(Small)
Record Book PHP 75.00 1 Piece PHP 75.00
500pp
Dater Stamp PHP 45.00 6 Piece PHP 270.00

aTM Puncher – 2 PHP 165.00 6 Pieces PHP 990.00

Holes
Receipt PHP 26.00 1 pack PHP 26.00

Desk Planner PHP 199.75 6 pcs. PHP 1,198.50

Total PHP 8,892.50

FURNITURES

Type Price Per Unit Quantity Total Amount

Vento 8 Office PHP 3,350.00 6 pcs. PHP 20,100.00

Table
Conference Table PHP 14,500.00 1 set PHP 14,500.00
and Chairs
Ergodynamic PHP 1,979.00 9 pcs. PHP 17,811.00
Office Chair
Wooden Office PHP 22,500.00 1 pcs. PHP 22,500.00
Staff table with
Partition
Mobile Rolling PHP 3,943.00 2 pcs. PHP 7,886.00
Black Metal
Office Drawer
Drawer Metal PHP 2,250.00 4 pcs. PHP 9,000.00
Home Office
Total PHP 91,797.00

RAM MATERIALS

Type Price Per Unit Quantity Total Amount

Plyboard PHP 900.00 40 pcs. PHP 36,000.00

Nails PHP 30.00 56 Kilos PHP 1,680.00

Hinge PHP 100.00 16 Packs of 10 PHP 1,600.00

Sand Paper PHP 20.00 320 pcs. PHP 6,400.00

Hardener PHP 75.00 40 small PHP 3,000.00

containers
Polytop PHP 150.00 40 cans PHP 6,000.00

Thinner PHP 30.00 40 cans PHP 1,200.00

Stickwell PHP 40.00 10 packs PHP 400.00

Drawer Guide PHP 90.00 160 pcs. PHP 14,400.00

Drawer Handle PHP 50.00 80 pcs. PHP 4,000.00

Swivel Wheel PHP 40.00 280 pcs. PHP 11,200.00

Paint (White) PHP 155.00 40 cans PHP 6,200.00

 Paint (Blue) PHP 120.00 40 cans PHP 4,800.00

Paint (Grey) PHP 120.00 40 cans PHP 4,800.00

Paint (Grey) PHP 60.00 40 small cans PHP 2,400.00

Total PHP 104,080.00

ADMINISTRATION BUDGET

Items Cost

Rent PHP 7,500.00/month

Internet and Telephone PHP 2,899.00/month

Water Bill PHP 700.00/month

Electricity PHP 3,000/month

Business Registration and Licenses PHP 30,925.65

Vehicle Registration and Licenses PHP 3,000.00

Total PHP 48,024.65

BUSINESS REGISTRATION AND LICENSES

Process Fixed Cost

Certificate of Registration PHP 3,000.00

 Application Fee PHP 315.00

Sole Proprietorship PHP 500.00

Document Stamp PHP 15.00

Business Name PHP 500.00

Permit to Operate PHP 500.00

ECC PHP 300.00

Business Permit PHP 500.00

Barangay Clearance PHP 230.00

Mayor’s Permit PHP 14,000.00

BIR PHP 5,000.00

Zoning Certification PHP 2,900.00

Fire Code Fee PHP 3,165.65

Total PHP 30,925.65

MARKETING BUDGET

Type Fixed Cost

Flyers PHP 500.00/100pcs.

Commercial PHP 356,428.51

 Total PHP 356,928.51

OTHER EXPENSES

Expenses Cost

Salaries Expense PHP 85,400.00

Vehicle Expense PHP 2,500.00

Total PHP 87,900.00

CONTENT

Contents Unit Price

Plyboard 1 pcs. PHP 900.00

Nails 1.4 kilo PHP 42.00

Hinge 4 pcs. PHP 40.00

Sand Paper 8 pcs. PHP 160.00

Hardener 1 small container PHP 75.00

Polytop 1 can PHP 150.00

Thinner 1 can PHP 30.00

Stickwell ¼ pack PHP 10.00

Drawer Guide 4 pcs. PHP 360.00

Drawer Handle 2 pcs. PHP 100.00

 Swivel Wheel 7 pcs. PHP 280.00

Paint (Primer White) 1 can PHP 155.00

Paint (Blue) 1 can PHP 120.00

Paint (Grey) 1 can PHP 120.00

Paint (Grey) 1 small can PHP 60.00

Total PHP 2,602.00

Pricing

Raw Materials 104,080.00

Factory Equipment 2,240.00

Utilities Expense 6,599.00

Rent Expense 7,500.00

Labor 10,000.00

Vehicle Expenses 2,500.00

Total 132,919.00

132,919.00/40 units 3,322.975 = 3,323.00

Mark-up 75%

3,323.00 + 2,492.25 5,815.25

Profit 75%
 2,492.25 X 40 = 99,690.00

Financial Strategies

Every business needs its own strategy to be on the top provider of its industry
that’s why it also needs its strategies regarding financial situations.

It’s really hard for businesses to have financial stability, it requires a long way
of monitoring the financial status daily. To stay consistent with our financial goals,
there are ways we consider to apply. The first strategy is to have emergency fund.
The capital will be 5,000,000 building a manufacturing business. The money was
inherited from the owner’s family. We know that 5,000,000 wouldn’t be spent that
easy but it may decrease more than half so the remaining money will be on the
bank. We all know it, life is a bit of complicated to deal with. We don’t know what
might happen for sure. We might experience that one day we’re selling really well
then, the next day we’re a total bankrupt. Life is complicated. Business world is
much complicated so it’s better to have a backup fund in case we are in need
of money. In that way, we can avoid loaning at the bank. Speaking of loaning,
our second strategy is to avoid being in debt. Since, we are a manufacturing
business where it needs a total attention with the money like any other business.
The business needs a lot of process and money to just create a singular product.
We need to spend wisely. Buying a cheaper price with a lower quality than some
of the materials is not an option in spending wisely. We need to lessen our
expenditures but it doesn’t mean that we also need to lower our product’s
quality. We will spend money into something that we really needed and recycling
is also a way to avoid spending too much. We accept a broken armchair then
turned it into our own design of innovative arm chair. And if we really needed to
pay on account, we make sure to settle the previous transaction before making
a new one. Aside from the company having debts, we will avoid the customers
having debts.
 Customers who have debts are really hard to deal with. Our way to avoid
those circumstances is we’ll make sure that the customer has the ability to buy
our products by making the price appealing and affordable to them. We need
to gain profit but our other goal is to provide what our customers needed and to
satisfy them. With the price of ₱ 5,943.94 and unique features anyone hasn’t seen
to any other arm chair, we can make them buy our product. Another strategy is
to let go of negative money ideals. One said that you shouldn’t tell anyone that
you won’t make money and that you will fail eventually. It’s possible and every
business has a failure once but you know, business who fail more is the one who
succeed at the end. It is because they won’t stop trying. We won’t let our
negativity eats us up and we strive harder for our customers, that’s why we also
consider this strategy. We will control the money use of the company.

Since our price will be much reasonable for an arm chair which has unique
features, we can say that the chair will be much affordable for the customers and
by that, our sales will increase. As our sales increase, our company will increase,
too. We plan to hire more employees who are willing and dedicated to be trained
and improved with us. As our enterprise is improving, we also want to make sure
that our employees are also developing themselves to give better satisfaction
with the products we provide to our customers. As what we believed, “Increase
learnings, to increase earnings” really did exist.

With these strategies, we can certainly assure everyone that our enterprise
will continue as being one of the best provider, not just in the aspects of giving
products with good qualities, but also in helping our society to develop and
create good relationships with harmony to everyone. These financial strategies
will serve as our guide and foundation to stay as one of the top provider for a long
period of time.

Financial Projection

Year 1
Income Statement

Vigoroso De Muebles
Income Statement
As of December 31,2018
Sales 3,140,235.00
Cost of Goods Sold 1,405,080.00
Gross Profit 1,735,155.00
Operating Expense:
Registration and Licenses Expense - 30,925.65
Company
Registration and Licenses Expense - Truck 3,000.00
Rent Expense 90,000.00
Utilities Expense 79,188.00
Advertising Expense 500.00
Office Supplies Expense 27,611.50
Salaries Expense 1,039,800.00
Vehicle Expense 39,000.00
Total Operating Expense 1,310,025.15
Operating Income 425,129.85
Other Income
Delivery Fee Received 42,000.00
Net Income 467,129.85
Tax Expense 93,425.97
Net Income After Tax 373,703.88

Balance Sheet

Vigoroso De Muebles
 Balance Sheet
As of December 31,2018
Assets
Cash 5,196,508.35
Furniture 91,797.00
Office Equipment 172,541.00
Factory Equipment 2,240.00
Office Supplies 4,043.50
Delivery Truck 175,000.00
Liabilities
Accounts Payable 175,000.00
Owner's Equity
Vigoroso De Muebles, Capital 5,000,000.00
TOTAL 5,642,129.85 5,175,000.00
Net Income 467,129.85
5,642,129.85 5,642,129.85

Year 2

Income Statement

Vigoroso De Muebles
Income Statement
As of December 31,2019
Sales 3,838,065.00
Cost of Goods Sold 1,717,320.00
Gross Profit 2,120,745.00
Operating Expense:
 Registration and Licenses Expenses- 30,925.65
Company
Registration and Licenses Expenses - Truck 3,000.00
Rent Expense 90,000.00
Utilities Expense 87,588.00
Advertising Expense 356,428.51
Office Supplies Expense 27,611.50
Salaries Expense 1,069,800.00
Vehicle Expense 57,000.00
Depreciation Expense - Furniture 7,679.70
Depreciation Expense - Office Equipment 15,754.10
Depreciation Expense - Factory 348
Equipment
Depreciation Expense - Delivery Truck 9,500.00
Total Operating Expense 1,755,635.46
Operating Income 365,109.54
Other Income
Delivery Fee Received 66,000.00
Net Income 431,109.54
Tax Expenses
86,221.91
Net Income After Tax 344,887.63

Balance Sheet

Vigoroso De Muebles
Balance Sheet
As of December 31,2019
Assets
 Cash 5,600,899.69
Furniture 91,797.00
Accumulated Depreciation - Furniture 7,679.70
Office Equipment 172,541.00
Accumulated Depreciation - Office 15,754.10
Equipment
Factory Equipment 2,240.00
Accumulated Depreciation - Factory 348
Equipment
Office Supplies 4,043.50
Delivery Truck 175,000.00
Accumulated Depreciation - Delivery Truck 9,500.00
Liabilities
Accounts Payable 125,000.00
Owner's Equity
Vigoroso De Muebles, Capital 5,467,129.85
Drawings 10,000.00
TOTAL 6,056,521.19 5,625,411.65
Net Income 431,109.54
6,056,521.19 6,056,521.19

Year 3

Income Statement

Vigoroso De Muebles
Income Statement
As of December 31,2020
Sales 4,535,895.0
0
Cost of Goods Sold 2,029,560.0
0
Gross Profit 2,506,335.0
0
Operating Expense:
Registration and Licenses Expenses- 30,925.65
Company
Registration and Licenses Expenses - Truck 3,000.00
Rent Expense 90,000.00
Utilities Expense 95,988.00
Advertising Expense 1,000.00
Office Supplies Expense 27,611.50
Salaries Expense 1,099,800.0
0
Vehicle Expense 75,000.00
Depreciation Expense - Furniture 9,346.37
Depreciation Expense - Office Equipment 17,420.77
Depreciation Expense - Factory Equipment 473
Depreciation Expense - Delivery Truck 18,388.89
Total Operating Expense 1,468,954.1
8
Operating Income 1,037,380.8
2
Other Income
Delivery Fee Received 90,000.00
Net Income 1,127,380.8
2
Tax Expense 225,476.16
Net Income After Tax 901,904.66

Balance Sheet

Vigoroso De Muebles
Balance Sheet
As of December 31,2020
Assets
Cash 6,723,909.5
4
Furniture 91,797.00
Accumulated Depreciation - Furniture 17,026.07
Office Equipment 172,541.00
Accumulated Depreciation - Office 33,174.87
Equipment
Factory Equipment 2,240.00
Accumulated Depreciation - Factory 821
Equipment
Office Supplies 4,043.50
Delivery Truck 175,000.00
Accumulated Depreciation - Delivery Truck 27,888.89
Liabilities
Accounts Payable 75,000.00
Owner's Equity
Vigoroso De Muebles, Capital 5,888,239.3
9
TOTAL 7,169,531.0 6,042,150.2
4 2
Net Income 1,127,380.8
2
7,169,531.0 7,169,531.0
4 4

Monthly Income Statement of Vigoroso De Muebles

Sales 232,610.00
Less: Cost of Goods Sold 104,080.00
Gross Profit 128,530.00
Operating Expense:
Rent Expense 7,500.00
Utilities Expense 6,599.00
Salaries Expense 85,400.00
Vehicle Expense 2,500.00
Total Operating Expense 101,999.00
Operating Income 26,531.00
Other Income
Delivery Fee Received 2,500.00
Net Income 29,031.00
Tax Expense 7,785.50
Net Income After Tax 21,245.50
 Monthly Income Statement of Vigoroso de Muebles
250,000.00

200,000.00

150,000.00

100,000.00

50,000.00

0.00
Gross Sales // Less: Cost of Gross Profit // Less: Operating Net Income// Less: Tax Expense
Goods Sold Expenses

Revenues Expenses