PWU-CDCEC CALAMBA

ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 35

Chapter 4

FINANCIAL ASPECT

FINANCIAL ASSUMPTIONS

1. The sales will increase 5% annually.

2. Expenses for the raw materials, packaging and store supplies increase annually
with 5%.

3. Equipment, and Furniture and Fixture has a useful life of 5 years.

4. Salaries of the employees are increased by 5% annually.

5. The employees’ benefits which is the 13th month pay also increases 5% annually.

6. The utilities expense is assumed to increase by 2% annually.

INITIAL CAPITAL INVESTMENT

Partners Rate Contribution

Partner A 25% 325,000
Partner B 25% 325,000
Partner C 25% 325,000
Partner D 25% 325,000
TOTAL 100% 1,300,000

COST AND EXPENSE SCHEDULE

 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 36

Schedule 1
RAW MATERIALS
Quantity per
Ingredient Unit Unit Price Annually
Year
burger buns pack (12s) 5,000 20 100,000
potato kilo 36 45 1,620
tofu pcs 48 5 240
bread crumbs kilo 42 20 840
eggs pcs 48 4 192
cheese box 10 35 350
carrots kilo 36 45 1,620
lettuce kilo 36 55 1,980
tomato kilo 36 25 900
cucumber kilo 36 15 540
mayonnaise bottle 45 20 900
ketchup bottle 45 20 900
lime pcs 20 15 300
salt kilo 1 15 15
pepper kilo 1 20 20
cooking oil liter 25 120 3,000
TOTAL         113,417

Schedule 2
PACKAGING
Quantity per
Particulars Unit Unit Price Annually
Year
paper bag pack 250 80 20,000
plastic pack 300 65 19,500
TOTAL         39,500

Schedule 3
EQUIPMENT
Equipment Unit Quantity Unit Price Total
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 37

refrigerator pc 1 13,999 13,999
ventilator pc 2 1,235 2,470
air conditioner pc 1 17,000 17,000
CCTV camera set 1 13,000 13,000
stove pc 1 750 750
TOTAL       47,219

Schedule 4
FURNITURE and FIXTURES
Furniture Unit Quantity Unit Price Total
tables pc 2 850 1,700
chairs pc 4 200 800
sink pc 1 3,000 3,000
cabinet pc 3 1,200 3,600
TOTAL       9,100

Schedule 5
KITCHEN TOOLS
Tools Unit Quantity Unit Price Total
mixing bowl set (4s) 3 350 1,050
measuring spoons set 2 210 420
peeler pc 2 75 150
chopping board pc 2 130 260
kitchen knife pc 2 270 540
paring knife pc 2 190 380
weighing scale pc 1 330 330
frying pan pc 3 240 720
tray pc 5 236 1,180
spatula pc 5 235 1,175
plastic containers set (6s) 2 100 200
boiler pc 1 380 380
TOTAL 6,785
Schedule 6
KITCHEN SUPPLIES
Supplies Unit Quantity Unit Price Total
apron pack (6s) 2 130 260
pot holder pc 10 45 450
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 38

hair net pack (12s) 1 25 25
ref towel pc 6 60 360
plastic gloves box (100s) 10 73 730
TOTAL 1,825

Schedule 7
STORE SUPPLIES
Quantity per
Particulars Unit Unit Price Annually
Year
tissue pack 12 45 540
TOTAL         540

Schedule 8
OFFICE SUPPLIES
Supplies Unit Quantity Unit Price Total
ballpen box 1 55 55
bondpaper ream 1 165 165
calculator pc 2 130 260
stapler pc 2 32 64
staple wires box 3 10 30
scissors pc 2 12 24
LED light pc 5 150 750
TOTAL       1,348

Schedule 9
SANITARY SUPPLIES
Supplies Unit Quantity Unit Price Total
mop pc 2 115 230
broom pc 2 78 156
dust pan pc 2 60 120
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 39

dishwashing liquid liter 10 80 800
basin pc 2 35 70
sponge pc 6 20 120
trash can pc 3 135 405
trash bag pack 5 84 420
rag pc 20 2 40
TOTAL       2,361

Schedule 10
PREPAID RENT
Particulars Unit Quantity Unit Price Total
advance month 1 3,500 3,500
deposit month 2 3,500 7,000
TOTAL       10,500

Schedule 11
RENT EXPENSE
Particulars Unit Quantity Unit Price Total
rent month 12 3,500 42,000
TOTAL       42,000

Schedule 12
SALARIES and WAGES
Particulars No. Daily Monthly Total
kitchen staff 2 360 21,600 259,200
cashier 2 375 22,500 270,000
manager 1 390 11,700 140,400
TOTAL       669,600

Schedule 13
EMPLOYEES' BENEFITS
Particulars No. Daily Monthly Total
kitchen staff 2 360 21,600 21,600
cashier 2 375 22,500 22,500
manager 1 390 11,700 11,700
TOTAL       55,800
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 40

Schedule 14
UTILITIES EXPENSE
Particulars Monthly Annually
electricity 2,200 26,400
water 450 5,400
LPG 600 7,200
TOTAL 3,250 39,000

Schedule 15
MISCELLANEOUS EXPENSE
Particulars Quantity Unit Price Total
LPG tank 1 1,200 1,200
fire extinguisher 1 3,200 3,200
TOTAL       4,400

Schedule 16
DEPRECIATION EXPENSE
Assets Total Amount Depreciation
Equipment 47,219 9,444
Furniture and Fixtures 9,100 1,820
TOTAL 56,319 11,264

Schedule 17
PERMITS AND LICENSES
Permits 2018 2019 2020 2021 2022
BIR registration 500 500 500 500 500
SEC registration 650 650 650 650 650
barangay clearance 300 300 300 300 300
Mayor's permit 1,500 1,500 1,500 1,500 1,500
business tax 1,300 1,300 1,300 1,300 1,300
garbage 3,000 3,000 3,000 3,000 3,000
sanitary 150 150 150 150 150
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 41

business permit sticker 40 40 40 40 40
business permit plate 200 200 200 200 200
fire protection permit 565 565 565 565 565
DTI 230 - - - -
3% percentage tax 53,100 55,755 58,543 61,470 64,543
TOTAL 61,535 63,960 66,748 69,675 72,748

PROJECTED DEMAND AND SALES

ANNUAL SALES
Product Price Quantity Produced Daily Annually
Tofutato burger 25 160 4,000 1,416,000
TOTAL         1,416,000

PROJECTED SALES
2018 1,416,000
2019 1,486,800
2020 1,561,140
2021 1,639,197
2022 1,721,157

STATEMENT OF COST OF GOODS SOLD

Year 2018 2019 2020 2021 2022

Add: Purchases          
Raw Materials 113,417 119,088 125,042 131,294 137,859
Total Goods Available
113,417 119,088 125,042 131,294 137,859
for Use
Add:          
Direct and Indirect
669,600 703,080 738,234 775,146 813,903
Labor
Packaging 39,500 41,475 43,549 45,726 48,012
Total Goods Available 709,100 744,555 781,783 820,872 861,915
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 42

for Sale
COST OF GOODS
822,517 863,643 906,825 952,166 999,775
SOLD

PROJECTED INCOME STATEMENT

Year 2018 2019 2020 2021 2022

Sales 1,416,000 1,486,800 1,561,140 1,639,197 1,721,157
Less: Cost of Goods
822,517 863,643 906,825 952,166 999,775
Sold
Gross Income 593,483 623,157 654,315 687,031 721,382
Less: Operating
         
Expenses
Kitchen Supplies 1,825 1,825 1,825 1,825 1,825
Office Supplies 1,348 1,348 1,348 1,348 1,348
Sanitary Supplies 2,361 2,361 2,361 2,361 2,361
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 43

Store Supplies 540 567 595 625 656
Rent Expense 42,000 42,000 42,000 42,000 42,000
Employees' Benefits 55,800 58,590 61,520 64,595 67,825
Utilities Expense 39,000 39,780 40,576 41,387 42,215
Miscellaneous Expense 4,400 - - - -
Depreciation Expense 11,264 11,264 11,264 11,264 11,264
Permits and Licenses 50,915 52,809 55,039 57,381 59,840
Total Operating
209,453 210,544 216,527 222,786 229,334
Expense
Income Before Tax 384,030 412,613 437,788 464,244 492,048
Less: 30% Income Tax 115,209 123,784 131,336 139,273 147,614
NET INCOME 268,821 288,829 306,451 324,971 344,434

PROJECTED STATEMENT OF CASH FLOW

Year 2018 2019 2020 2021 2022

Cash Beginning - 1,506,481 1,806,574 2,124,289 2,460,524
Partners' Contribution 1,300,000 - - - -
Sales 1,416,000 1,486,800 1,561,140 1,639,197 1,721,157
Total Cash Inflow 2,716,000 2,993,281 3,367,714 3,763,486 4,181,681
Less:          
Purchase of Fixed
63,104 - - - -
Assets
Purchase of Raw
113,417 119,088 125,042 131,294 137,859
Materials
Packaging 39,500 41,475 43,549 45,726 48,012
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 44

Prepaid Rent 10,500 - - - -
Kitchen Supplies 1,825 1,825 1,825 1,825 1,825
Office Supplies 1,348 1,348 1,348 1,348 1,348
Sanitary Supplies 2,361 2,361 2,361 2,361 2,361
Store Supplies 540 567 595 625 656
Rent Expense 42,000 42,000 42,000 42,000 42,000
Salaries and Wages 669,600 703,080 738,234 775,146 813,903
Employees' Benefits 55,800 58,590 61,520 64,595 67,825
Utilities Expense 39,000 39,780 40,576 41,387 42,215
Miscellaneous
4,400 - - - -
Expense
Permits and Licenses 50,915 52,809 55,039 57,381 59,840
Income Tax 115,209 123,784 131,336 139,273 147,614
Total Cash Outflow 1,209,519 1,186,707 1,243,425 1,302,962 1,365,459
CASH BALANCE
1,506,481 1,806,574 2,124,289 2,460,524 2,816,222
END

PROJECTED STATEMENT OF FINANCIAL POSITION

ASSETS 2018 2019 2020 2021 2022

Current Assets          
Cash 1,506,481 1,806,574 2,124,289 2,460,524 2,816,222
Prepaid Rent 10,500 10,500 10,500 10,500 10,500
Total Current
1,516,981 1,817,074 2,134,789 2,471,024 2,826,722
Assets
Non Current Assets          
Equipment 47,219 47,219 47,219 47,219 47,219
Furniture and Fixture 9,100 9,100 9,100 9,100 9,100
Kitchen Tools 6,785 6,785 6,785 6,785 6,785
Less: Accumulated
11,264 22,528 33,791 45,055 56,319
Depreciation
 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 45

Total Non Current
51,840 40,576 29,313 18,049 6,785
Assets
TOTAL ASSETS 1,568,821 1,857,650 2,164,102 2,489,073 2,833,507

LIABILITIES AND
PARTNERS' 2018 2019 2020 2021 2022
EQUITY
Partner A, Capital 392,205 464,413 541,025 622,268 708,377
Partner B, Capital 392,205 464,413 541,025 622,268 708,377
Partner C, Capital 392,205 464,413 541,025 622,268 708,377
Partner D, Capital 392,205 464,413 541,025 622,268 708,377
TOTAL
LIABILITIES AND
1,568,821 1,857,650 2,164,102 2,489,073 2,833,507
PARTNERS'
EQUITY

FINANCIAL RATIO

Return on Investment

Return on Investment = Net Profit

Investment

  2018 2019 2020 2021 2022

Net Profit 268,821 288,829 306,451 324,971 344,434
Investment 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Return on Investment 0.21 0.22 0.24 0.25 0.26
Rate 21% 22% 24% 25% 26%

Gross Profit Margin

 PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA

BACHELOR OF SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT 46

Gross Profit Margin = Net Profit

Gross Income

  2018 2019 2020 2021 2022

Net Profit 268,821 288,829 306,451 324,971 344,434
Gross Income 593,483 623,157 654,315 687,031 721,382
Return on Investment 0.45 0.46 0.47 0.47 0.48
Rate 45% 46% 47% 47% 48%