Financial Plan

The major costs for the company will be the Machinery and Equipment needed, salaries of the
staff, and rent for a small office and the utilities. In the initial years, the company’s marketing spend will
be high, as it establishes itself in the market. HBR&C is seeking a total funding of P1, 500,000 million to
launch its business. The capital will be used for include further app development, marketing collateral,
website development and working capital.

Projected of Financial Condition

Statement of Financial Condition

December 2020
Assets
Current Assets:
Cash and Cash Equivalents 215,000
Inventory 150,000
Office Equipment 200,000
Non-Current Assets:
Furniture and Fixtures 100,000
Machinery and Equipment 700,000
____________________________________________________________________________
Total Assets 1,365,000

Liabilities and Equity

Liabilities
Debt/Bank Loan 891,100
Interest Payable 46,900
Equity
Share in Capital 200,000
Retained Earnings 227,500
____________________________________________________________________________
Total Liabilities and Capital 1,365,000
 Key Assumptions & Forecasts

Below please find the key assumptions that went into the financial forecast.

Year 1 Year 2 Year 3

Annual Number of 40,000 50,000 62,500

Users

Annual Number of 240,000 300,000 375,000

Hours Completed

Revenue 3,600,000 4,500,000 5,625,000

Annual number of users will be based on the assumption of an average of 110 users per day and an
increase of 25% on the number of users per year

Annual number of hours will be based on the assumption of 6 hours availed by the total number of
users.

Revenue is derived by the assumption of 15 pesos or 15% fixed commission rate of the company based
on the average rate per hour of the workers.
 3-Year Revenue and Expenditure Expense

Statement of Operation

Year 1 Year 2 Year 3

Revenue 3,600,000 4,500,000 5,625,000

Operating Expenses

Legal and Accounting 240,000 240,000 240,000

Rent Expense 240,000 250,000 260,000

Depreciation Expense 30,000 24,000 18,000

Salaries Expense 2,400,000 2,400,000 2,500,000

Advertising Expense 300,000 200,000 150,000

Repair and Maintenance 15,000 15,000 20,000

Utilities Expense 50,000 55,000 60,000

Total Operating Expense 3,275,000 3,184,000 3,248,000

Operating Income 325,000 1,316,000 2,377,000

Less: Taxes (97,500) (394,000) (713,100)

NET INCOME 227,500 921,200 1,663,900

Financial Projections
Financial Summary

Year 3

Year 2

Year 1

0 200,000 400,000 600,000 Series

800,000 1
1,000,000 1,200,000 1,400,000 1,600,000 1,800,000