BAGO ENTERPRISE

INCOME STATEMENT
For the year ended December 31, 2019

Notes
Sales 10 ₱ 1,218,800.00

Cost of Goods Sold 11 ₱ 766,622.43

Gross Profit ₱ 452,177.57
Operating & Administrative Expenses:
Depreciation Expense 3&4 ₱ 21,431.94
Business Plan 12 ₱ 2,470.00
Permits and Licenses 13 ₱ 4,213.00
Advertising Expense 14 ₱ 6,150.00
Rent Expense 16 ₱ 110,000.00
Utilities Expense 17 ₱ 52,240.00
Interest Expense 18 ₱ 66,000.00
Salaries and Wages - OPEX 19 ₱ 304,500.00
Office Supplies Expense 20 ₱ 21,751.50
Cleaning Supplies Expense 21 ₱ 890.00
SSS - ER Share 22 ₱ 44,200.00
HDMF - ER Share 23 ₱ 6,000.00
PHIC - ER Share 24 ₱ 8,395.20
13th Month Pay 25 ₱ 66,056.00
Total ₱ 648,241.64

Net Profit (Loss) -₱ 196,064.07

 BAGO ENTERPRISE
STATEMENT OF FINANCIAL POSITION
As of December 31, 2019

ASSETS Notes
Current Assets
Cash and Cash Equivalents CF ₱ 1,041,362.08
Prepaid Rent 2 ₱ 20,000.00
Ending Inventory 11 ₱ 36,505.83
Total Current Assets ₱ 1,097,867.91

Non - Current Assets

Office Equipment 3 ₱ 72,555.00
Accumulated Depreciation - OE 3 -₱ 20,431.94
Furnitures and Fixture 4 ₱ 6,000.00
Accumulated Depreciation - FF 4 -₱ 1,000.00
Total Non - Current Assets ₱ 57,123.06
TOTAL ASSETS ₱ 1,154,990.97

LIABILITIES
Current Liabilities
Accounts Payable 5 ₱ 14,703.04
Salaries and Wages Payable 6 ₱ 33,028.00
Percentage Tax Payable 7 ₱ 3,324.00
Total Current Liabilities ₱ 51,055.04

Non - Current Liabilities

Loans Payable 8 ₱ 653,333.33
Interest Payable 9 ₱ 294,000.00
 Total Non - Current Liabilities ₱ 947,333.33

TOTAL LIABILITIES ₱ 998,388.37

OWNER'S EQUITY
Owner's Equity, Ending OE ₱ 156,602.60
TOTAL OWNER'S EQUITY ₱ 156,602.60

TOTAL LIABILITIES AND EQUITY ₱ 1,154,990.97

- 0.00
 BAGO ENTERPRISE
STATEMENT OF CHANGES IN EQUITY
For the year ended December 31, 2019

Tillada, Capital Beginning ₱ 500,000.00

Add: Investments ₱ 800,000.00

Less: Net Loss -₱ 196,064.07
Less: Withdrawals -₱ 947,333.33
Total -₱ 343,397.40

Tillada, Capital Ending ₱ 156,602.60

 BAGO ENTERPRISE
STATEMENT OF CASH FLOW
For the year ended December 31, 2019

OPERATING
Net Income (Loss) -196,064.07
Add: Increase in Depreciation Expense 21,431.94
Add: Increase in Total Accounts Payable 51,055.04
Less: Increase in Inventory -36,505.83
Less: Increase in Prepaid Rent -20,000.00
Net Operating Cash Flows -180,082.92

INVESTING
Purchase of Equipments -72,555.00
Purchase of Furniture & Fixtures -6,000.00
Net Investing Cash Flows -78,555.00

FINANCING
Loan 800,000.00
Investment 500,000.00
Net Financing Cash Flows 1,300,000.00

Ending Cash Balance 1,041,362.08

 BAGO ENTERPRISE
NOTES TO FINANCIAL STATEMENTS
For the year ended December 31, 2019

1 CASH AND CASH EQUIVALENTS

Amount
Cash on Hand ₱ 10,000.00
Cash in Bank ₱ 1,031,362.08
TOTAL ₱ 1,041,362.08

2 PREPAID RENT
Amount
Monthly Rental ₱ 10,000.00
No. of Months Covered 2.00
TOTAL ₱ 20,000.00

3 OFFICE EQUIPMENT
Monthly Depreciation NBV as of Dec
Useful Life Cost
Depreciation Expense 2019
Laptop 3 YEARS 20,995.00 583.19 5,831.94 15,163.06
Computer Set 3 YEARS 35,000.00 972.22 9,722.22 25,277.78
Office Printer 3 YEARS 7,595.00 210.97 2,109.72 5,485.28
Electric Fan 2 YEARS 2,000.00 83.33 833.33 1,166.67
Water Dispenser 3 YEARS 6,965.00 193.47 1,934.72 5,030.28
TOTAL ₱ 72,555.00 ₱ 20,431.94 ₱ 52,123.06

4 FURNITURES AND FIXTURE

Monthly Depreciation NBV as of Dec
Useful Life Cost
Depreciation Expense 2019
Office Table 5 YEARS ₱ 3,000.00 50.00 500.00 2,500.00
Drawer 5 YEARS ₱ 3,000.00 50.00 500.00 2,500.00
TOTAL ₱ 6,000.00 ₱ 1,000.00 ₱ 5,000.00
5 ACCOUNTS PAYABLE
Amount
Social Security System - EE & ER Share 6,600.00
Home Development Mutual Fund - EE
& ER Share 1,200.00
Philippine Health Insurance
Corporation - EE & ER Share 1,679.04
Visayan Electric Company Inc 2,350.00
Philippine Long Distance
Telecommunications 1,999.00
Metro Cebu Water District 875.00
TOTAL ₱ 14,703.04

6 SALARIES AND WAGES PAYABLE

Bi-Monthly Rate
Office Staff (2) 12,000.00
Workers (4) 18,528.00
Bookkeeper 2,500.00
PAYABLE AS OF DEC 2019 ₱ 33,028.00

Cost of Goods Sold ₱ 18,528.00

Operating & Admin Expenses ₱ 14,500.00

7 PERCENTAGE TAX PAYABLE

Projected Annual Sales 1,218,800.00

Percentage Tax Rate 3%
Percentage Tax Payable for the year ₱ 36,564.00
Months already paid 10/11
Percentage tax already paid ₱ 33,240.00
Percentage Tax still due ₱ 3,324.00
8 LOAN PAYABLE

Principal Amount 800,000.00

No. of Years Payable 5.00
Annual Loan Payable ₱ 160,000.00
Months per Year 12.00
Monthly Loan Payable ₱ 13,333.33
Applicable Months (Feb-Dec) 11.00
Paid Loan Payable ₱ 146,666.67

LOAN PAYABLE AS OF DEC 2019 ₱ 653,333.33

9 INTEREST PAYABLE
Amount
Principal Amount 800,000.00
Interest Rate per Annum 0.09
Annual Interest Rate ₱ 72,000.00
No. of Years Payable 5.00
Total Interest Payable ₱ 360,000.00
Less: Interest Expense 66,000.00
Net Interest Payable ₱ 294,000.00

10 SALES

Annual Production Capacity 6,094.00

Selling Price 200.00
Projected Annual Sales ₱ 1,218,800.00

11 COST OF GOODS SOLD

Amount
Materials 395,500.60
 Salaries and Wages - Workers 407,616.00
Total ₱ 803,116.60
Finished Goods, Beginning -
Finished Goods, Available for Sale 803,128.26
Finished Goods, Ending 36,505.83
TOTAL COST OF GOODS SOLD ₱ 766,622.43

MATERIALS
QTY Unit Cost Amount
Taffeta Polyester Cloth 1 meter 39.00 39.00
Pin Button 4 pieces 2.00 8.00
Bell Chord 3 meters 4.30 12.90
Thread 1 roll 5.00 5.00
64.90
(target number of production for the year) 6,094.00
TOTAL ₱ 395,500.60

12 BUSINESS PLAN
Unit Cost Amount
Photocopy 200.00 200.00
Printing 270.00 270.00
Transportation 600.00 600.00
Miscellaneous 350.00 350.00
Advisor Honorarium 1,000.00 1,000.00
Pannelist' Snacks 50.00 50.00
TOTAL ₱ 2,470.00

13 PERMITS AND LICENSES

Unit Cost Amount
Barangay Clearance 50.00 50.00
BIR Registration 500.00 500.00
 Fire Safety Inspection Certificate 100.00 100.00
Mayor's Permit 2,400.00 2,400.00
Sanitary Inspection Fee 363.00 363.00
DTI Registration 300.00 300.00
Natorial Fee 100.00 100.00
Police Clearance 100.00 100.00
City Health Inspection Fee 300.00 300.00
TOTAL ₱ 4,213.00

14 ADVERTISING EXPENSE
QTY Unit Cost Amount
Flyers 500.00 10.00 5,000.00
Business Card 500.00 2.30 1,150.00
TOTAL ₱ 6,150.00

16 RENT EXPENSE
Amount
Monthly Rental 10,000.00
No. of Months (Feb-Dec) 11.00
TOTAL ₱ 110,000.00

17 UTILITIES EXPENSE
Rate No. of Months Amount
Electricity 2,350.00 10.00 23,500.00
Telecommunication 1,999.00 10.00 19,990.00
Water 875.00 10.00 8,750.00
TOTAL ₱ 52,240.00

18 INTEREST EXPENSE
Amount
Principal Amount 800,000.00
 Interest Rate per Annum 0.09
Annual Interest Rate ₱ 72,000.00
Applicable Months 11.00
TOTAL ₱ 66,000.00

19 SALARIES AND WAGES EXPENSE

Monthly Rate
Office Staff (2) 24,000.00
Workers (4) 37,056.00
Bookkeeper (Outsource) 5,000.00
Total per Month 66,056.00
Applicable Months 10.50
TOTAL PER YEAR ₱ 693,588.00

Cost of Goods Sold ₱ 389,088.00

Operating & Admin Expenses ₱ 304,500.00

20 OFFICE SUPPLIES EXPENSE

QTY Unit Cost Amount
Record Book 1.00 75.00 75.00
Monoblock Chairs 4.00 100.00 400.00
Office Pens 3.00 5.00 15.00
Paper Reciept 1.00 32.00 32.00
Printing Ink refills 3.00 280.00 840.00
Business Tape 2.00 60.00 120.00
Organizer 2.00 319.00 638.00
Folder 20.00 5.00 100.00
Office Clips 1.00 30.00 30.00
Office Pins 1.00 30.00 30.00
Tape Despenser 1.00 86.00 86.00
Time Card 1.00 50.00 50.00
Bond Paper 1.00 249.75 249.75
 Ring Binder 1.00 250.00 250.00
Cloth Envelope 1.00 370.50 370.50
Magnetic Schedule Board 1.00 255.00 255.00
Cutter 1.00 84.00 84.00
TOTAL ₱ 3,625.25
(purchase of office supplies every after 2 months) 6.00
TOTAL ₱ 21,751.50

21 CLEANING SUPPLIES
QTY Unit Cost Amount
Broom 2.00 25.00 50.00
Dustpan 2.00 35.00 70.00
Trash Bin 2.00 50.00 100.00
Trash Bags 5.00 100.00 500.00
Floor map 2.00 85.00 170.00
TOTAL ₱ 890.00

22 SOCIAL SECURITY SYSTEM - ER SHARE

Total per Total for the
Rate
Month Year
Office Staff (2) 884.00 1,768.00 17,680.00
Workers (4) 663.00 2,652.00 26,520.00
TOTAL ₱ 4,420.00 ₱ 44,200.00

Total per
EE SHARE Rate
Month
Office Staff (2) 436.00 872.00
Workers (4) 327.00 1,308.00
TOTAL ₱ 2,180.00

23 HOME DEVELOPMENT MUTUAL FUND - ER SHARE

 Total per Total for the
Rate
Month Year
Office Staff (2) 100.00 200.00 2,000.00
Workers (4) 100.00 400.00 4,000.00
TOTAL ₱ 600.00 ₱ 6,000.00

24 PHILIPPINE HEALTH INSURANCE CORPORATION - ER SHARE

Rate Total per Total for the
Month Year
Office Staff (2) 165.00 330.00 3,300.00
Workers (4) 127.38 509.52 5,095.20
TOTAL ₱ 839.52 ₱ 8,395.20

25 13TH MONTH PAY

Rate
Office Staff (2) 24,000.00
Workers (4) 37,056.00
Bookkeeper (Outsource) 5,000.00
Total ₱ 66,056.00
 COSTING

Materials ₱ 395,500.60
Salaries and Wages - Workers ₱ 407,616.00
Total ₱ 803,116.60
Annual Production Capacity (Units) ₱ 6,094.00

Cost Per Unit ₱ 131.79

Proposed Selling Price ₱ 200.00

Mark Up 51.76%
 ASSUMPTIONS IN PREPARING THE FS

1 Fixed assets has no salvage value at the end of its useful life
2 Prepaid rent of 2 Months is stated on the Lease Contract
3 Accrual Method of Accounting is applied
4 Bookkeeper is not an employee of BAGO Enterprise. He is only a Retainer
5 Workers were paid using the Minimum Wage Rate in Cebu City
6 Salaries of Office Staff were classified as part of Operating Expenses while Wages of Workers were classified as part of Cost of Goods Sold
7 BAGO Enterprise is Non Vat Registered. Therefore, subject to 3% Percentage Tax.
8 Ending Inventory is 50% of Monthly Production Capacity
9 Statutory Contributions are based on actual contributions
10 Pre-operation will start on January 2019 and normal opeartion should commence on February 2019
11 The proposed business will follow the calendar year reporting period
12 The business will operate six days in a week
13 PHP 1,300,000 is the start up capital in order to start and grow the business that came from a loan which is PHP 800,000 and PHP 500,000 f
14 We sell 554 units of product per month based on the demand of the customers.
15 Payment for drawstring bags is on a cash basis only.
16 Renewal of the necessary permits and licenses for the next five years is subject for changes.
17 The life span of fixed assets; laptop, computer set, office printer and water dispenser for five years, electric fan for two years, and office tab
18 Suppliers is billed on a cash basis.
19 The interest rate is 9% per annum.
t of Cost of Goods Sold

00,000 and PHP 500,000 from the owner.

r two years, and office table, monoblock table and drawer for ten years.