Beginning Balance 15,000.

00
Cost of flour, salt, yeast/loaf Bread 15.00
Cost of cake mix, sugar, butter, choco 141.00
Cost of Stationery 200.00
Cost of Fuel/mo. (Transport) 1,000.00
Cost of LPG per Production Period 600.00
Cost of 2nd Hand Oven 10,000.00

Price/Loaf of Bread 25.00

Price of Cake 300.00

Wages of Part-Time Asst Baker/Mo. 2,500.00

Cash Out for Family Expenses 7,000.00
Record-Keeping
Date Cash In Cash Out Balance
1 2a 2b 3a 3b 4
Item Amount Item Amount
5-Jan Beginning CASH Balance 15,000 15,000
5-Jan Bought 2nd Hand Oven 10,000
5-Jan Bought flour, salt, yeast for bread 750
5-Jan Bought stationery - pens, notebook 200
5-Jan Bought cake mix,sugar,butter,choco 705
5-Jan Bought Fuel for 1 Month 1,000
Liquefied Petroleum Gas (LPG) 600
Subtotal 13,255
5-Jan CASH as of 5-Jan 1,745
8-Jan Sold 10 loaves bread @ P 25 250
9-Jan Sold 5 cakes @ P 300 1,500
10-Jan Sold 20 loaves bread @ P 25 500
15-Jan Sold 20 loaves bread @ P 25 500
Subtotal 2,750
15-Jan CASH as of 15-Jan 4,495
17-Jan Bought flour, salt, yeast for bread 900
17-Jan Bought cake mix,sugar,butter,choco 1,410
Subtotal 2,310
17-Jan CASH as of 17-Jan 2,185
19-Jan Sold 15 loaves bread @ P 25 375
20-Jan Sold 10 cakes @ P 300 3,000
20-Jan Sold 20 loaves bread @ P 25 500
21-Jan Sold 25 loaves bread @ P 25 625
Subtotal 4,500
CASH as of 21-Jan 6,685
22-Jan Bought flour, salt, yeast for bread 750
22-Jan Bought cake mix,sugar,butter,choco 2,820
22-Jan LPG 600
Subtotal 4,170
CASH as of 22-Jan 2,515
23-Jan Sold 10 loaves bread @ P 25 250
23-Jan Sold 20 cakes @ P 300 6,000
24-Jan Sold 20 loaves bread @ P 25 500
25-Jan Sold 20 loaves bread @ P 25 500
Subtotal 7,250
CASH as of 25-Jan 9,765
26-Jan Bought flour, salt, yeast 900
26-Jan Bought cake mix,sugar,butter,choco 3,525
Subtotal 4,425
CASH as of 26-Jan 5,340
27-Jan Sold 15 loaves bread @ P 25 375
27-Jan Sold 25 cakes @ P 300 7,500
28-Jan Sold 20 loaves bread @ P 25 500
28-Jan Sold 25 loaves bread @ P 25 625
Subtotal 9,000
CASH as of 28-Jan 14,340
30-Jan Paid wages of part-time Asst Baker 2,500
CASH as of 30-Jan 11,840

9
30-Jan Paid for family expenses 7,000
Subtotal 7,000
CASH as of 30-Jan 4,840

9
Date Cash In Cash Out Balance
1 2a 2b 3a 3b 4
Item Amount Item Amount
5-Feb Beginning CASH Balance 4,840 4,840

5-Feb Bought flour, salt, yeast 900

5-Feb Bought cake mix,sugar,butter,choc 3,525
5-Feb Gas for Oven 600
5-Feb Subtotal 5,025

-185
5-Feb What should you do to avoid running out of cash?

9
The Baker's Profit

Month January
SALES: From Product A: Bread 5,500.00
From Product B: Cakes 18,000.00
TOTAL SALES (X) 23,500.00
COSTS: Direct Material Costs - Bread 3,300.00
Direct Material Costs - Cakes 8,460.00
Direct Labor Costs 2,500.00
Other Direct Costs - Gas for oven 1,200.00
Indirect Costs - Stationery 200.00
Indirect Costs - Fuel (Transport) 1,000.00
Indirect Costs - Depreciation 416.67
TOTAL COSTS (Y) 17,076.67
PROFIT (X – Y) 6,423.33
The Baker's Cash Flow

Jan 5 8 9 10 15 17 19 20 21 22 23 24 25 26 27 28
Cash at the beginning of the day 15,000 1,745 1,995 3,495 3,995 4,495 2,185 2,560 6,060 6,685 2,515 8,765 9,265 9,765 5,340 13,215
CASH IN
Sales - Bread 250 500 500 375 500 625 250 500 500 375 1,125
Sales - Cakes 1,500 3,000 6,000 7,500
Any other cash in
TOTAL CASH IN 15,000 1,995 3,495 3,995 4,495 4,495 2,560 6,060 6,685 6,685 8,765 9,265 9,765 9,765 13,215 14,340
CASH OUT
Direct Materials - Flour, Salt, Yeast 750 900 750 900
Direct Materials - Cake Mix, Butter, Choco 705 1,410 2,820 3,525
Direct Labor
Direct Costs - LPG for Oven 600 600
Indirect Costs - Stationery 200
Indirect Costs - Fuel 1,000
Any other cash out (Oven) 10,000
TOTAL CASH OUT 13,255 0 0 0 0 2,310 0 0 0 4,170 0 0 0 4,425 0 0
Cash at the end of the day 1,745 1,995 3,495 3,995 4,495 2,185 2,560 6,060 6,685 2,515 8,765 9,265 9,765 5,340 13,215 14,340
Cash Out for Family Expenses
Remaining Cash After Family Expenses 1,745 1,995 3,495 3,995 4,495 2,185 2,560 6,060 6,685 2,515 8,765 9,265 9,765 5,340 13,215 14,340

NOTE: The Business Part (Rows 1-10) of the Cash-In, Cash-Out Plan will be different for the times when demand and prices vary
(e.g. dry vs. rainiy season). The Family Part (Rows 13-14) will vary for the end of the month, birthdays, school enrollment time, and other occasions.

GROUP DISCUSSION - On Feb. 5, the owner had to buy and transport materials of the same amount as Jan. 26.
He had no cash left after that. Suggest what the owner should do to avoid running out of cash.
 30 Feb 5 8 9
14,340 4,840

5,500
18,000

14,340 4,840

3,300 900
8,460 3,525
2,500 2,500
1,200 600
200
1,000
0 10,000
2,500 5,025
11,840 -185
7,000
4,840 -185
 LECHON MANOK

Date Description Amount

Feb.1 Beginning Balance 15,000.00
Feb. 3 Bought Charcoal 550.00
Bought ingredients for chicken sauce 725.00
Feb. 5 Bought dressed chicken 1,000.00
Feb. 8 Sold 7 Lechon Manok @ P150 1,050.00
Feb. 11 Paid wages of Lechonero 500.00
Feb. 12 Got Charcoal on credit 750.00
Sold 5 Lechon Manok @ P150 750.00
Feb. 15 Paid Electricity bill 325.00
Sold 5 Lechon Manok @ P150 750.00
Feb. 17 Paid Charcoal obtained on credit 750.00
Bought dressed chicken 1,500.00
Feb. 21 Paid rent 800.00
Feb. 22 Paid installment for motorcycle (for delivery) 5,000.00
Feb. 25 Sold 20 Lechon Manok @ P150 3,000.00
Feb. 26 Sold 5 Lechon Manok @ P150 on credit to Mrs. Cruz 750.00

Feb. 28 Bought Charcoal in cash 750.00

Paid wages of Lechonero 500.00
Paid tuition fees of son 2,000.00
Feb. 28 Ms. Cruz pays for Lechon Manok that she owes 750.00
 MONEY IN MONEY OUT
DATE BALANCE
ITEM AMOUNT ITEM AMOUNT
CASH as of ____________ 0
Credit Record
PAUTANG sa UTANG sa
Date Sold Items Customer Amount Paid IN Bought Items Supplier Amount
12-Feb Charcoal Mang Toto 750.00
17-Feb Mang Toto
26-Feb 5 L.Manok @ 150 Mrs. Cruz 750.00
28-Feb Mrs. Cruz 750.00
Paid OUT

750.00
CASH FLOW PLAN
February 1 3 5 8 11
Cash at the beginning of the day 15,000 15,000 13,725 12,725 13,775
CASH IN
Sales - Lechon Manok - - - 1,050
TOTAL CASH IN 15,000 15,000 13,725 13,775 13,775
CASH OUT
Direct Materials -Lechon Manok - 725 1,000 -
Direct Labor - Lechonero 500
Indirect Costs - Electricity - - - -
Indirect Costs - Rent - - - -
Indirect Costs - Motorcycle - - - -
Any other Direct Cost (Charcoal) - 550 - -
TOTAL CASH OUT 0 1,275 1,000 0 500
Cash at the end of the day 15,000 13,725 12,725 13,775 13,275
Cash Out for the Family Expenses
REMAINING CASH AFTER FAMILY EXPENSES 15,000 13,725 12,725 13,775 13,275

Looking at the Cash Flow, do you think the business will do well?
12 15 17 21 22 25 28
13,275 14,025 14,450 12,200 11,400 6,400 9,400

750 750 - - - 3,000 750

14,025 14,775 14,450 12,200 11,400 9,400 10,150

- - 1,500 - - - -
500
- 325 - - - -
- - - 800 - - -
- - - - 5,000 - -
- - 750 - - - 750
0 325 2,250 800 5,000 0 1,250
14,025 14,450 12,200 11,400 6,400 9,400 8,900
2,000
14,025 14,450 12,200 11,400 6,400 9,400 6,900
Activity 8 - Cash Flow Plan

Based on its record book, this is the Cash Flow of the bakery in the first half of January. Continue making the Cash Flow Plan for the rest of January.
See if you get the same result as the owner did on page 25 .

Cash Flow Plan

Jan 5 8 9 10 15 17 19 20 21 22 23 24 25 26 27 28 30
Cash at the beginning of the day 15,000 1,745 1,995 3,495 3,995
CASH IN
Sales - Bread 250 500 500
Sales - Cakes 1,500
Any other cash in
TOTAL CASH IN 15,000 1,995 3,495 3,995 4,495
CASH OUT
Direct Materials - Flour, Salt, Yeast 750
Direct Materials - Cake Mix, Butter, Choco 705
Direct Labor
Direct Costs - LPG for Oven 600
Indirect Costs - Stationery 200
Indirect Costs - Fuel 1,000
Any other cash out (Oven) 10,000
TOTAL CASH OUT 13,255 0 0 0 0
Cash at the end of the day 1,745 1,995 3,495 3,995 4,495
Cash Out for Family Expenses
Remaining Cash After Family Expenses 1,745 1,995 3,495 3,995 4,495

NOTE: The Business Part (Rows 1-10) of the Cash-In, Cash-Out Plan will be different for the times when demand and prices vary
(e.g. dry vs. rainiy season). The Family Part (Rows 13-14) will vary for the end of the month, birthdays, school enrollment time, and other occasions.

GROUP DISCUSSION - On Feb. 5, the owner had to buy and transport materials of the same amount as Jan. 26.
He had no cash left after that. Suggest what the owner should do to avoid running out of cash.
Feb Feb 5 8 9
The Baker's Calculation of Start-Up Capital

Cash Flow Plan

Jan 5 8 9 10 15 17 19 20 21 22 23 24 25 26 27 28 30
Cash at the beginning of the day 15,000 1,745 1,995 3,495 3,995 4,495 2,185 2,560 6,060 6,685 2,515 8,765 9,265 9,765 5,340 5,715 6,840
CASH IN
Sales - Bread 250 500 500 375 500 625 250 500 500 375 1,125
Sales - Cakes 1,500 3,000 6,000 0
Any other cash in
TOTAL CASH IN 15,000 1,995 3,495 3,995 4,495 4,495 2,560 6,060 6,685 6,685 8,765 9,265 9,765 9,765 5,715 6,840 6,840
CASH OUT
Direct Materials - Flour, Salt, Yeast 750 900 750 900
Direct Materials - Cake Mix, Butter, Choco 705 1,410 2,820 3,525
Direct Labor 2,500
Direct Costs - LPG for Oven 600 600
Indirect Costs - Stationery 200
Indirect Costs - Fuel 1,000
Any other cash out (Oven) 10,000
TOTAL CASH OUT 13,255 0 0 0 0 2,310 0 0 0 4,170 0 0 0 4,425 0 0 2,500
Cash at the end of the day 1,745 1,995 3,495 3,995 4,495 2,185 2,560 6,060 6,685 2,515 8,765 9,265 9,765 5,340 5,715 6,840 4,340
Cash Out for Family Expenses 7,000
Remaining Cash After Family Expenses 1,745 1,995 3,495 3,995 4,495 2,185 2,560 6,060 6,685 2,515 8,765 9,265 9,765 5,340 5,715 6,840 -2,660

Compute the Start-Up Capital needed by the business by adding all CASH OUT ITEMS and putting them in the column after Jan. 30.
The Start-Up Capital is equal to 26,660
Total
Feb 5 8 9

3,300
8,460
2,500
1,200
200
1,000
10,000
26,660
Start Up Capital

DIRECT COSTS
Direct Materials - Flour, Salt, Yeast 3,300.00
Direct Materials - Cake Mix, Butter, Choco 8,460.00
Direct Labor 2,500.00
Other Direct Costs - LPG for Oven 1,200.00
INDIRECT COSTS
Indirect Costs - Stationery 200.00
Indirect Costs - Fuel 1,000.00
EQUIPMENT
2nd Hand Oven 10,000.00
START UP CAPITAL 26,660.00
Start Up Capital

DIRECT COSTS
Direct Materials -

Direct Labor -

INDIRECT COSTS (Rent, Electricity, etc.)

EQUIPMENT

Start Up Capital
Depreciation

Life in Life in Depreciation

Items Years Months Cost per Month
Equipment
- Oven 2 24 10,000.00 416.67

Tools

Furniture

Total Depreciation per Month 416.67

Depreciation

Life in Life in Depreciation

Items Years Months Cost per Month
Equipment

Tools

Furniture

Total Depreciation per Month

Cash Flow Plan
Week 1 2 3 4
Cash at the beginning of the Week
CASH IN -
Sales: Product A
Product B
Product C
All Other Products
Any other cash in
TOTAL CASH IN
CASH OUT -
Direct Costs: Materials -
Labor -
Indirect Costs:

Any other cash out

TOTAL CASH OUT
Cash at the end of the Week
Cash Out for Family Expenses
Remaining Cash After Family Expenses

NOTE: The Business Part (Rows 1-10) of the Cash-In, Cash-Out Plan will be different for the times when demand and prices vary
(e.g. dry vs. rainiy season). The Family Part (Rows 13-14) will vary for the end of the month, birthdays, school enrollment time, and other
 Total

0 0 0 0 0 0 0 0

0
0

0
0 0 0 0 0 0 0 0

0
0
0
0
0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

emand and prices vary

ol enrollment time, and other occasions.
Sales and Costs Plan

Week 1
SALES:
Product A:
Product B:
Product C:
Product D:

TOTAL SALES (X)

COSTS:
Direct Costs

Indirect Costs -

Indirect Costs - Depreciation

TOTAL COSTS (Y)
PROFIT (X – Y)
 Total
2 3 4 Month