FROSTBITES

INCOME STATEMENT
NOTE 2020 2021 2022 2023 2024
SALES 1 1,899,000.00 2,072,970.00 2,138,669.10 2,202,829.17 2,268,914.05
COST OF SALES 2 937,500.00 1,032,740.00 1,063,722.25 1,095,634.27 1,128,503.30
GROSS PROFIT 961,500.00 1,040,230.00 1,074,946.85 1,107,194.91 1,140,410.75
Salaries Expense 3 (323,274.00) (323,274.00) (323,274.00) (323,274.00) (323,274.00)
Employee Benefits Expense 4 (19,140.00) (19,140.00) (19,140.00) (19,140.00) (19,140.00)
Packaging Expense 5 (74,541.60) (76,032.43) (77,553.12) (79,104.18) (80,686.26)
Rent Expense 6 (96,000.00) (96,000.00) (96,000.00) (96,000.00) (96,000.00)
Utilities Expense 7 (93,600.00) (95,376.00) (97,186.56) (99,032.36) (101,013.01)
Gas Refill Expense 8 (1,800.00) (1,836.00) (1,872.72) (1,910.17) (1,948.38)
Advertising expense 9 (700.00) (700.00) (700.00) (700.00) (700.00)
Maintenance expense 10 (2,500.00) (2,500.00) (2,500.00) (2,500.00) (2,500.00)
Offi ce Supplies Expense 11 (2,101.00) (773.92) (861.33) (692.45) (705.06)
Cleaning and Kitchen Supplies Expense 12 (1,900.00) (1,010.00) (1,929.11) (1,031.33) (1,041.60)
Depreciation Expense - Machinery 13 (24,840.00) (24,840.00) (24,840.00) (24,840.00) (24,840.00)
Deprecation Expense - Furnitures and Fixtures 14 (286.00) (286.00) (286.00) (286.00) (286.00)
Depreciation Expense - Kitchen Tools and Equipment 15 (564.50) (564.50) (564.50) (564.50) (564.50)
Depreciation Expense - Service Vehicle 16 (700.00) (700.00) (700.00) (700.00) (700.00)
Depreciation Expense - Leasehold Improvements 17 (161.00) (161.00) (161.00) (161.00) (161.00)
Taxes and Licenses 18 (66,190.00) (71,409.10) (73,380.07) (75,304.88) (77,287.42)
OPERATING EXPENSES (708,298.10) (714,602.95) (720,948.41) (725,240.87) (730,847.23)
NET INCOME/LOSS
BEFORE INCOME TAX 253,201.90 325,627.05 353,998.44 381,954.03 409,563.52
Provision for Income Tax 19 (640.38) (15,125.41) (20,799.69) (26,390.81) (69,890.88)
NET INCOME 252,561.52 310,501.64 333,198.75 355,563.23 339,672.64
 FROSTBITES
STATEMENT OF CASH FLOW
2020 2021 2022 2023 2024

Cash Flow from Operating Activities

Cash received from customers 1,899,000.00 2,072,970.00 2,138,669.10 2,202,829.17 2,268,914.05
Cash paid for Inventories (937,500.00) (1,032,740.00) (1,063,722.25) (1,095,634.27) (1,128,503.30)
Cash paid for Salaries Expense (291,054.00) (323,274.00) (323,274.00) (323,274.00) (323,274.00)
Cash paid for SSS Premium expense (12,320.00) (13,440.00) (13,440.00) (13,440.00) (13,440.00)
Cash paid for PHILHEALTH premium expense (3,025.00) (3,300.00) (3,300.00) (3,300.00) (3,300.00)
Cash paid for PAG-IBIG premium expense (2,200.00) (2,400.00) (2,400.00) (2,400.00) (2,400.00)
Cash paid for packaging expense (74,541.60) (76,032.43) (77,553.12) (79,104.18) (80,686.26)
Cash paid for rent expense (96,000.00) (96,000.00) (96,000.00) (96,000.00) (96,000.00)
Cash paid for utilities expense (85,800.00) (95,220.00) (97,027.44) (98,870.06) (100,847.46)
Cash paid for gas refi ll expense (1,800.00) (1,836.00) (1,872.72) (1,910.17) (1,948.38)
Cash paid for Advertising expense (700.00) (700.00) (700.00) (700.00) (700.00)
Cash paid for maintenance expense (2,500.00) (2,500.00) (2,500.00) (2,500.00) (2,500.00)
Cash paid for offi ce supplies (2,101.00) (773.92) (861.33) (692.45) (705.06)
Cash paid for cleaning and kitchen supplies (1,900.00) (1,010.00) (1,929.11) (1,031.33) (1,041.60)
Cash paid for taxes and licenses (49,642.50) (70,104.33) (72,887.33) (74,823.67) (76,791.78)
Cash paid for income tax (640.38) (15,125.41) (20,799.69) (26,390.81) (69,890.88)
Net cash flow from operating activities 337,275.52 338,513.92 360,402.11 382,758.23 366,885.32

Cash flow from investing Activities

Rent Deposit (16,000.00) - - - -
Leasehold Improvements (1,610.00) - - - -
Service vehicle (7,000.00) - - - -
Kitchen Tools and Equipment (5,645.00) - - - -
Appliances (248,400.00) - - - -
Furniture (2,860.00)
Net cash flow from investing Activities (281,515.00)

Cash from Financing Activities

Cash Investment 400,000.00
Cash Withdrawal (180,000.00) (180,000.00) (180,000.00) (180,000.00) (180,000.00)
Net cash flow from financing activities 220,000.00

Increase in cash 275,760.52 158,513.92 180,402.11 202,758.23 186,885.32

Cash, January 1 - 275,760.52 434,274.44 614,676.55 817,434.78
Cash, December 31 275,760.52 434,274.44 614,676.55 817,434.78 1,004,320.10
 FROSTBITES
STATEMENT OF FINANCIAL POSITION
2020 2021 2022 2023 2024
Cash 275,760.52 434,274.44 614,676.55 817,434.78 1,004,320.10
Prepaid Rent 16,000.00 16,000.00 16,000.00 16,000.00 16,000.00
TOTAL CURRENT ASSETS 291,760.52 450,274.44 630,676.55 833,434.78 1,020,320.10
Appliances 248,400.00 248,400.00 248,400.00 248,400.00 248,400.00
Less: Accumulated Depreciation- Appliances (24,840.00) (49,680.00) (74,520.00) (99,360.00) (124,200.00)
Carrying Value 223,560.00 198,720.00 173,880.00 149,040.00 124,200.00

Furnitures 2,860.00 2,860.00 2,860.00 2,860.00 2,860.00

Less: Accumulated Depreciation - Furnitures (286.00) (572.00) (858.00) (1,144.00) (1,430.00)
Carrying Value 2,574.00 2,288.00 2,002.00 1,716.00 1,430.00

Kitchen Tools and Equipment 5,645.00 5,645.00 5,645.00 5,645.00 5,645.00

Less: Accumulated Depreciation- Kitchen tools and
Equipment (564.50) (1,129.00) (1,693.50) (2,258.00) (2,822.50)
Carrying Value 5,080.50 4,516.00 3,951.50 3,387.00 2,822.50

Service Vehicle 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00

Less: Accumulated Depreciation- Service Vehicle 700.00 1,400.00 2,100.00 2,800.00 3,500.00
Carrying Value 6,300.00 5,600.00 4,900.00 4,200.00 3,500.00

Leasehold Improvements 1,610.00 1,610.00 1,610.00 1,610.00 1,610.00

Less: Accumulated Depreciation (161.00) (322.00) (483.00) (644.00) (805.00)
Carrying Value 1,449.00 1,288.00 1,127.00 966.00 805.00

TOTAL NON-CURRENT ASSETS 238,963.50 212,412.00 185,860.50 159,309.00 132,757.50

TOTAL ASSETS 530,724.02 662,686.44 816,537.05 992,743.78 1,153,077.60
PHILHEALTH Premuim Payable 275 275 275 275 275
SSS Premium Payable 1120 1120 1120 1120 1120
PAG-IBIG Premium Payable 200 200 200 200 200
Salaries Payable 32,220 32,220 32,220 32,220 32,220
Utilities Payable 7,800.00 7,956.00 8,115.12 8,277.42 8,442.97
Taxes and Licenses Payable 16,547.50 17,852.28 18,345.02 18,826.22 19,321.86
TOTAL LIABILITIES 58,162.50 59,623.28 60,275.14 60,918.64 61,579.83

Beginning Capital 400,000.00 472,561.52 603,063.16 756,261.91 931,825.13

Net Income 252,561.52 310,501.64 333,198.75 355,563.23 339,672.64
Withdrawals of Owner (180,000.00) (180,000.00) (180,000.00) (180,000.00) (180,000.00)
TOTAL OWNER'S EQUITY 472,561.52 603,063.16 756,261.91 931,825.13 1,091,497.77

TOTAL LIABILITIES AND OWNER'S EQUITY 530,724.02 662,686.44 816,537.05 992,743.78 1,153,077.60
 FROSTBITES
STATEMENT OF CHANGES IN EQUITY
2020 2021 2022 2023 2024

Beginning Capital 400,000.00 472,561.52 603,063.16 756,261.91 931,825.13

Add: Profit 252,561.52 310,501.64 333,198.75 355,563.23 339,672.64
Total 652,561.52 783,063.16 936,261.91 1,111,825.13 1,271,497.77
Less: Withdrawals 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00
Ending Capital 472,561.52 603,063.16 756,261.91 931,825.13 1,091,497.77

PROFITABILITY RATIOS
2020 2021 2022 2023 2024

Gross Profit 961,500.00 1,040,230.00 1,074,946.85 1,107,194.91 1,140,410.75

GROSS PROFIT MARGIN =
Sales 1,899,000.00 2,072,970.00 2,138,669.10 2,202,829.17 2,268,914.05
51% 50% 50% 50% 50%
Net Profit 241,121.52 299,061.64 321,758.75 344,123.23 328,232.64
NET PROFIT MARGIN =
Sales 1,899,000.00 2,072,970.00 2,138,669.10 2,202,829.17 2,268,914.05
13% 14% 15% 16% 14%
Net Profit 241,121.52 299,061.64 321,758.75 344,123.23 328,232.64
RETURN ON ASSETS =
Average Total Assets 524,141.90 803,134.05 1,122,378.93 1,483,565.11 1,887,063.11
46% 37% 29% 23% 17%
Net Profit 241,121.52 299,061.64 321,758.75 344,123.23 328,232.64
RETURN ON EQUITY =
Average Equity 520,479.02 592,524.32 624,770.58 656,853.79 650,881.12
46% 50% 52% 52% 50%
 2020 2021 2022 2023 2024

Current Assets 286,788.40 590,036.05 935,146.71 1,322,198.95 1,751,563.32

CURRENT RATIO =
Current Liabilities 59,357.50 61,462.68 62,771.83 64,085.76 65,430.79
4.83 9.60 14.90 20.63 26.77
Quick Assets 275,760.52 434,274.44 60,275.14 817,434.78 931,825.13
QUICK ASSET RATIO =
Current Liabilities 58,162.50 59,623.28 62,771.83 60,918.64 61,579.83
4.74 7.28 0.96 13.42 15.13
Cost of Investments 400,000.00
PAYBACK PERIOD =
Annual Cash Inflow 252,561.52
147,438.48 1.58
310,501.64
 NOTE 1: PROJECTED SALES
No. of Weeks of
PRODUCT Production per Operation per Quantity Sold Selling Price 2020 2021 2022 2023 2024
week Year per Year per Unit
wholesale 6000.00 39 234,000.00 4.50 1,053,000.00 1,201,590.00 1,241,147.70 1,278,382.13 1,316,733.59
retail 3000.00 47 141,000.00 6.00 846,000.00 871,380.00 897,521.40 924,447.04 952,180.45
Total 9000.00 375,000.00 1,899,000.00 2,072,970.00 2,138,669.10 2,202,829.17 2,268,914.05

NOTE 2: PROJECTED COST OF SALES

No. of Weeks of
PRODUCT Production per Operation per Quantity Sold Cost per Unit 2020 2021 2022 2023 2024
week Year per Year
wholesale 6,000 39 234,000.00 2.50 585,000.00 669,665.00 689,755.00 710,448.00 731,761.44
retail 3,000 47 141,000.00 2.50 352,500.00 363,075.00 373,967.25 385,186.27 396,741.86
Total 9,000 375,000.00 2.50 937,500.00 1,032,740.00 1,063,722.25 1,095,634.27 1,128,503.30

NOTE 3: SALARIES EXPENSE

Days of
EMPLOYEES Operation per Rate per Day 2020 2021 2022 2023 2024
Year
Production1 252 537.00 161,637.00 161,637.00 161,637.00 161,637.00 161,637.00
Production2 252 537.00 161,637.00 161,637.00 161,637.00 161,637.00 161,637.00
323,274.00 323,274.00 323,274.00 323,274.00 323,274.00
 NOTE 4: EMPLOYEE BENEFITS EXPENSE

EMPLOYEE 2020 2021 2022 2023 2024

SSS PHILHEALTH PAGIBIG SSS PHILHEALTH PAGIBIG SSS PHILHEALTH PAGIBIG SSS PHILHEALTH PAGIBIG SSS PHILHEALTH PAGIBIG
Production 1 6720.00 1650.00 1200.00 6720.00 1650.00 1200.00 6720.00 1650.00 1200.00 6720.00 1650.00 1200.00 6720.00 1650.00 1200.00
Production 2 6720.00 1650.00 1200.00 6720.00 1650.00 1200.00 6720.00 1650.00 1200.00 6720.00 1650.00 1200.00 6720.00 1650.00 1200.00
Total 13440.00 3300.00 2400.00 13440.00 3300.00 2400.00 13440.00 3300.00 2400.00 13440.00 3300.00 2400.00 13440.00 3300.00 2400.00

NOTE 5: PACKAGING EXPENSE

DESCRIPTION 2020 2021 2022 2023 2024
customized ice candy plastic 74,542 76,032.43 77,553.12 79,104.18 80,686.26

NOTE 6: RENT EXPENSE

Rate per Month 2020 2021 2022 2023 2024

8000.00 96,000 96,000.00 96,000.00 96,000.00 96,000.00

NOTE 7: UTILITIES EXPENSE

DESCRIPTION Rate per Month 2020 2021 2022 2023 2024
Water 800.00 9600.00 9696.00 9792.96 9890.89 9989.80
Electricity 7000.00 84000.00 85680.00 87393.60 89141.47 90924.30
7800.00 93600.00 95376.00 97186.56 99032.36 100914.10
 NOTE 8: GAS REFILL EXPENSE
Rate per 4
DESCRIPTION
Months 2020 2021 2022 2023 2024
Gas 600 1800.00 1836.00 1872.72 1910.17
1948.38

NOTE 9: ADVERTISING EXPENSE

DESCRIPTION 2020 2021 2022 2023 2024
Tarpaulin Printing 700.00 700.00 700.00 700.00 700.00

NOTE 10: MAINTENANCE EXPENSE

DESCRIPTION 2020 2021 2022 2023 2024
Labor 2500.00 2500.00 2500.00 2500.00 2500.00
 NOTE 11: OFFICE SUPPLIES
DESCRIPTION 2020 2021 2022 2023 2024
Ballpen 50.00 50.50 51.01 51.52 52.03
Staple wire 56.00 57.12 58.26 59.43 60.62

Receipt 360.00 367.20 374.54 382.03 389.68

Record Book 70.00 70.70 71.41 72.12 72.84
Batteries 120.00 122.40 124.85 127.35 129.90
Fastener 40.00 40.80
Stapler 135.00 140.45
Wall clock 300.00 106.00
Calculator 550.00
puncher 200.00
Bond Paper 150.00
Folder 70.00
2101.00 773.92 861.33 692.45 705.06

NOTE 12: CLEANING AND KITCHEN SUPPLIES

DECRIPTION 2020 2021 2022 2023 2024
Dishwashing liquid 750.00 757.50 765.08 772.73 780.46
Sponge 100.00 101.00 102.01 104.05 105.04
Broom 150.00 151.50 153.02 154.55 156.10
Dust Pan 50.00 50.50
Mop 750.00 757.50
Trash Bin 100.00 101.00
1900.00 1010.00 1929.11 1031.33 1041.60
 NOTE 13: DEPRECIATION EXPENSE - APPLIANCES
DESCRIPTION 2020 2021 2022 2023 2024
Wall Fan 2400.00 2400.00 2400.00 2400.00 2400.00
Upright Freezer 36000.00 36000.00 36000.00 36000.00 36000.00
Ice candy machine 210000.00 210000.00 210000.00 210000.00 210000.00
Total 248400.00 248400.00 248400.00 248400.00 248400.00
Divided by 10 Years 10 Years 10 Years 10 Years 10 Years
Annual Depreciation 24840.00 24840.00 24840.00 24840.00 24840.00

NOTE 14: DEPRECIATION EXPENSE - FURNITURES&FIXTURES

DESCRIPTION 2020 2021 2022 2023 2024
Chairs 360.00 360.00 360.00 360.00 360.00
Plastic Table 1000.00 1000.00 1000.00 1000.00 1000.00
Cash Drawer Table 1500.00 1500.00 1500.00 1500.00 1500.00
Total 2860.00 2860.00 2860.00 2860.00 2860.00
Divided by 10 years 10 years 10 years 10 years 10 years
Annual Depreciation 286.00 286.00 286.00 286.00 286.00
 NOTE 15: DEPRECIATION EXPENSE - KITCHEN TOOLS AND EQUIPMENT
DESCRIPTION 2020 2021 2022 2023 2024
Stove 1000.00 1000.00 1000.00 1000.00 1000.00
Grater 100.00 100.00 100.00 100.00 100.00
Stainless bowl 300.00 300.00 300.00 300.00 300.00
Soup Ladle 120.00 120.00 120.00 120.00 120.00
Pail 600.00 600.00 600.00 600.00 600.00
Styro Box 3450.00 3450.00 3450.00 3450.00 3450.00
Measuring Spoon 75.00 75.00 75.00 75.00 75.00
Total 5645.00 5645.00 5645.00 5645.00 5645.00
Divided by 10 years 10 years 10 years 10 years 10 years
Annual Depreciation 564.50 564.50 564.50 564.50 564.50

NOTE 16: DEPRECIATION EXPENSE - SERVICE VEHICLE

Description 2020 2021 2022 2023 2024
Pedicab 7000.00 7000.00 7000.00 7000.00 7000.00
Divided by 10 years 10 years 10 years 10 years 10 years
Annual Depreciation 700.00 700.00 700.00 700.00 700.00
 NOTE 17: DEPRECIATION EXPENSE - LEASEHOLD IMPROVEMENT
DESCRIPTION 2020 2021 2022 2023 2024
Paint 1440.00 1440.00 1440.00 1440.00 1440.00
Paint Roller 90.00 90.00 90.00 90.00 90.00
Paint Brush 80.00 80.00 80.00 80.00 80.00
Total 1610.00 1610.00 1610.00 1610.00 1610.00
Divided by 10 years 10 years 10 years 10 years 10 years
Annual Depreciation 161.00 161.00 161.00 161.00 161.00

NOTE 18: TAXES AND LICENSES

DESCRIPTION 2020 2021 2022 2023 2024
Licenses 9220.00 9220.00 9220.00 9220.00 9220.00
Percentage Tax (3% of Gross Sales) 56970.00 62189.10 64160.07 66084.88 68067.42
Total 66190.00 71409.10 73380.07 75304.88 77287.42

NOTE 19: PROVISION FOR INCOME TAX

DESCRIPTION 2020 2021 2022 2023 2024

Income before tax 253201.90 325627.05 353998.44 381954.03 409563.52
Less: Lower range -250000.00 -250000.00 -250000.00 -250000.00 -250000.00
3201.90 75627.05 103998.44 131954.03 159563.52
Multiply by Tax Rate 0.20 0.20 0.20 0.20 0.25
640.38 15125.41 20799.69 26390.81 39890.88
Add: Basic Tax 0.00 0.00 0.00 0.00 30000.00
640.38 15125.41 20799.69 26390.81 69890.88