Name of the Business:
CAFÉ-LING, Your Brewing Buddy

Names of the proponents: 

Rachel B. David
Shiela Mary M. Lopez
Christian O. Manaois
Al Phaulayne O. Ocampo

Address: 
Rockford Center, MacArthur Highway, Brgy. Salapungan,
Angeles City, 2009 Pampanga

Telephone Number:
09124366300

Email Address: 
cafeling@gmail.com 
cafeling@gmail.com 

Vision Statement:
Café-ling is envisioned to be one of the study cafés in the area that will provide needed
leisure and pleasure to the customers of all ages, while putting emphasis on the students,
since it is situated nearby schools. It aspires to consistently serve as a conducive place
 both for studying and hanging out.

Mission Statement:
✓  Build a friendly environment fit for customers of all ages but putting an emphasis on
students.

✓  Establish a good relationship with the customers by providing and offering quality yet
affordable products and services.

Executive Summary:
At present, people look for places that could provide an affordable and relaxing ambiance

for
willthem. Due
greatly aidtointhetheincreasing demand of their
accomplishment students seeking
school for the
works, a conducive place that
owners decided to
include school-related essentials that will meet student’s needs. It would incorporate the
 

concept of a café/ study lounge and at the same time, it would be perfect for people who
 just like to hang out with friends or relatives.
Café-ling, a small-scale business venture, is established to be a café that will cater to
students or ordinary customers who are coffee-lovers. It is situated in Brgy. Salapungan,
Angeles City, Pampanga. The ownership is limited partnership with Rachel B. David as
the General Partner. The remaining partners are: Shiela Mary M. Lopez, Christian O.
Manaois, and Al Phaulayne O. Ocampo.
Different marketing strategies will be utilized in order to promote the business.
Promotions will commence in social media accounts such as Facebook and Instagram
which will be made to reach out to more people. A collection of photos and videos will
 be uploaded so as to be seen and watched by
b y the audience.
For additional expenses to be made, the owners will be needing a loan to ensure that
every improvement shall be made with no haste. In addition, the loan will be for expenses
on resupplying of raw materials, equipment, and if possible, an allotment for expansion
and extension of the business into branches. It will be assured that the borrowed money
will be payed by the owners in a span of time.

MARKETING PLAN 
Situation Analysis
Café-ling is situated at Brgy. Salapungan, Angeles City, Pampanga, which is easily
accessible for customers since it is placed nearby Angeles University Foundation. Aside
from its easy-to-go-to location, it can also be reached through different social media sites
such as Facebook and Instagram where reliable and up-to-date posts and announcements
are regularly posted. The coffee shop adheres to the requirements and laws enacted by the
state such as:

R.A. No. 8424- also known as Tax Reform Act of 1997 where BIR assesses and collects
national internal revenue taxes in the Philippines.
R.A. No. 8976- An Act Establishing the Philippine Food Fortification Program
R.A. No. 10611- Strengthening the Philippine Food Safety Regulatory System

R.A. No. 8923- Registration of Patents, Trademarks, and Copyright

R.A. No. 8292- Employers and Business’ Registration to Social Security System  

Marketing Objectives
In a span of twelve (12) months, the business should be able to:
✓  Be one of the best coffee shops in the area in terms of number of customers and
 positive reviews.
✓  Have a projected net income of P3,000,000 in one year.
✓  Produce and offer products that can be embraced and supported by customers
which will encourage them to go back.
✓  Maintain a friendly environment both for workers and customers.
 

Target Market
Café-ling will cater to people who want to get their daily cup of great-tasting coffee in a
relaxing atmosphere. Customers vary in age, however, due to the location of the business
we are expecting a great percentage of our customers will come from students and
teachers. Moreover, students are eyeing coffee shops as perfect place for studying and
meeting different people. For us, this will give us a perfect opportunity to build a solid
client base.

Market Segmentation
Cafe will focus its marketing activities on reaching the University students and faculty,
 people working or living close to the coffee shop and on teenagers.

Marketing Tactics
Products and Price

Particulars Price
Coffees
Espresso 100 Pesos
Café Mocha 120 Pesos 
Iced Coffee 110 Pesos 
Black Coffee 100 Pesos 
Cappuccino 120 Pesos 
Sandwiches
Egg Salad Sandwich 50 Pesos 
Tuna Sandwich 50 Pesos 
Bacon with Egg Sandwich 80 Pesos 
Chicken Sandwich 55 Pesos 
Print
Black 5 Pesos 
Colored 15 Pesos 
(Photos)

Desserts
Chocolate Cappuccino 95 Pesos 
Cheesecake
Blueberry Cheesecake 100 Pesos 
Brownies 80 Pesos 
Chocolate Cake 90 Pesos 
Cookies and Cream Cake 75 Pesos 

Promotion (Advertising)
1.  Offering Loyalty Card
Free item will be granted to a customer if he/she avails different products amounting
to 250 pesos for five straight visits, not necessarily consecutive visits. A customer is
automatically entitled with a card that will be signed by the management if he/she
wishes to avail the offer.
 

2.  Creating Social Media Pages

By doing so, you will be able to reach out to a lot more people, they will also be
aware of your product and price range. Facebook and Instagram pages will be
created.

3.  By making use of visual communications

Visual
to the communications
success of your such as tarpaulins,
business posters,
promotion. Thingsleaflets
that can
are be contributing
seen are likelyfactors
to be
remembered by people.

4.  Word of mouth

If customers are satisfied by the services offered to them, they are likely to share what
they have experienced to their relatives and friends, who, if time allows, will become
 prospective customers.

Physical Environment

What sets this café apart from others is the café perfectly suits the need of the students for
a conducive place for studying and it can also be perfect for people who just like to
hangout. It has a set of chairs for relaxation, a stable Internet connection, printing service,
a plenty count of air conditioning units for a well-ventilated environment, and a set of
 books for additional entertainment.

Packaging
Food and beverages will be served with good quality and palatability with high regards to
cleanliness. Additional services especially printing, will be made available to the
customers.
 

Marketing Controls
Start-up Cost

MATERIALS EXPENSES
Construction of the place 200,000

Additional furniture and fixture 100,000

Ingredients for foods and beverages 200,000

Coffee Smallwares and Beverageware 40,000

Coffee Grinder (3) 50,000
Espresso Machine (2) 40,000
Water Kettle (2) 5,000
Cooking Equipment 80,000
Refrigerator (2) 70,000

Three-compartment sink 10,000

Display Case 5,500
Work and prepping table 20,000
Monthly Electricity Bill 15,000
Water Bill 2,500
Internet 8,000

6,000
Taxes and Licenses
(3,000 for taxes & 3,000 for License)

Printer (4) 20,000

Air Conditioner ( 2 Units) 30,000

Advertising 2,000

Labor 76,800

Books will come as form of donations

Books
from several people

TOTAL EXPENSES  980,800

The table above shows the total start- up costs that are estimated to be ₱ 980,000.00. The majority
of the costs are associated with the renovation of the building and with the furniture and fixtures
for the shop. And the rest of the expenses are for start-up assets cost like machines, equipment
and inventory. The Start-up cost amounts to ₱ 980,000.00
 

Monthly Budget

Ingredients for Food and Beverages 200,000

Electric Bill 15,000

Water Bill 2,500

Tax 6,000
Rent 40,000

Labor/Salary (8 employees) 76,800

Sales figure

PRODUCT/ PRICE QTY. YEAR 1 YEAR 2 YEAR 3

SERVICE PER
MONTH QTY PRICE QTY PRICE QTY PRICE
Coffees 25%
Espresso 70 315 3,780 264,600 4,725 330,720 5,906 413,420
Café Mocha 80 310 3,720 297,600 4,650 372,000 5,813 465,040
Iced Coffee 70 330 3,960 277,200 4,950 346,500 6,188 433,160
Black 60 300 3,600 216,000 4,500 270,000 5,625 337,500
Coffee
Cappuccino 80 340 4,080 326,400 5,100 408,000 6,375 510,000
TOTAL 1,381,800 1,727,250 2,159,220

PRODUCT/ PRICE QTY. YEAR 1 YEAR 2 YEAR 3

SERVICE PER
MONTH QTY PRICE QTY PRICE QTY PRICE
Sandwiches 25%
Egg Salad 50 310 3,720 186,000 4,650 232,500 5,813 290,650
Tuna 45 300 3,600 162,000 4,500 202,500 5,625 253,125
Bacon with 45 340 4,080 183,600 5,100 229,500 6,375 286,875
Egg
Chicken 55 360 4,320 237,600 5,400 297,000 6,750 371,250
TOTAL 769,200 961,500 1,201,900

PRODUCT/ PRICE QTY. YEAR 1 YEAR 2 YEAR 3

SERVICE PER
MONTH QTY PRICE QTY PRICE QTY PRICE
Desserts 25%
Chocolate 80 310 3,720 297,600 4,650 372,000 5,813 465,040
Cappuccino
Cheesecake
Blueberry 100 345 4,140 331,200 5,175 414,000 6,469 517,520
Cheesecake
Brownies 80 350 4,200 252,000 5,250 315,000 6,563 393,780
Chocolate 75 330 3,960 297,000 4,950 371,250 6,188 464,100
 

Cake
Cookies and 70 305 3,660 256,200 4,575 320,250 5,719 400,330
Cream
TOTAL 1,434,000 1,792,500 2,240,270

PRODUCT/ PRICE QTY. YEAR 1 YEAR 2 YEAR 3

SERVICE PER
MONTH QTY PRICE QTY PRICE QTY PRICE

Printing
Black 5 25%
1,750 21,000 105,000 26,250 131,250 32,813 164,065
Colored 15 1,200 18,000 270,000 22,500 337,500 28,125 421,875
(Photos)
TOTAL 375,000 468,750 585,940

VI. PRODUCTION PLAN 

Production Process

PROCESS IN MAKING THE COFFEE:

A. Bring water to boil in a kettle.

B. If using whole beans, grind the beans to a uniform consistency similar to

granulated table salt.

C. Meanwhile, put a filter in the brewer and rise with hot water. This
removes the papery residue on the filter and warms up the brewer,
keeping your coffee hot for longer. Discard the water used after using.

D. Add the grounds to the filter, making sure the surface is level. When the
water is between 195°F and 250°F (about a minute after removal from
heat), slowly and steadily pour just enough water over the grounds to
saturate them completely, starting from the middle and working your
way outward. Stop pouring before the coffee begins to drip through, This
is called the “bloom” pour, which allows the coffee to de -gas.

E. Slowly pour in the remaining water, keeping the water in the dripper
 between half and three-quarters full.
fu ll. This should take 3 to 4 minutes.
Carefully remove the filter, then serve and enjoy.

F. Add creamers and sugars, whipped cream, or any add-ons that customers
may opt. It may depend on the order that customers will state.

PROCESS IN MAKING THE SANDWICHES:

A. Choosing your spreads

Sandwich spreads add flavor but also perform the essential task of
lending moisture and sometimes creaminess to sandwiches. Mustard,
mayonnaise,
some of whatvinaigrettes,
customer may pesto, BBQfrom.
choose sauces, chutneys, and salsas would be
 

  B. Use the Right Bread

The bread to be used will be appropriate to the sandwich that will be made. Wheat
and ordinary breads will be used. They keep ingredients in check and maintain their
integrity much better than many breads.

C. Choose To-Go Toppings

Some sandwiches will have lettuces and tomatoes. These lend moisture, crunch,
and freshness and provide a wonderful foil for heavy, rich ingredients. In place of sliced
tomatoes, roasted pepper, sliced fennel, spinach shredded cabbage, or cucumber can be
toppings for the sandwiches.
D. Stave Off Sogginess

Spread mayo, butter or cream cheese all the way to the edges of each slice of
 bread to create a seal against wet sandwich fillings. Also, try packing high moisture
ingredients, like tomatoes, pickles, and cucumbers, separately. Just add them to the
sandwich when you’re ready to eat. Toasting the bread can help too.  

E. Plating

Put the finished product in the plate. Customers will be assured of the palatability
and cleanliness of the sandwiches.

PROCESS IN MAKING DESSERTS:

A. Prepare the ingredients: eggs, flour, milk, sugar, and other essential ingredient or
flavorings according to the dessert that will be produced.

B. Use only egg whites. Set aside after mixing.

C. In a separate bowl, mix together flour, milk, sugar, and the flavorings or essential
ingredients that will be needed. Pour the eggs while mixture and mix altogether.

D. Put the mixture in a cake tray. Afterwards, bake it for minutes in its corresponding
temperature.

MATERIAL REQUIREMENTS AND SOURCES OF SUPPLY

MATERIALS SOURCES OF SUPPLY

Coffee Small ware and Allegro Bevarages, Makati City
Beverageware
Coffee Grinder Allegro Bevarages, Makati City
Espresso Machine Allegro Bevarages, Makati City
Water Heater Robinsons Appliances in Bonifacio Avenue,
Marikina
Cooking Equipment MK Equipment, Quezon City
Refrigerator Robinsons Appliances in Bonifacio Avenue,
Marikina
Three-compartment Sink Metro Commercial Kitchen Depot, San Juan,
Metro Manila
Display case Metro Commercial Kitchen Depot, San Juan,
 

Metro Manila
Work and prepping table Metro Commercial Kitchen Depot, San Juan,
Metro Manila
Disposable coffee shop Greenpak Enterprises, Quezon City
supplies
Sofa pillows Robinsons Appliances in Bonifacio Avenue,
Marikina
Internet Converge ICT Solutions Inc., Pasig City
Printer Robinsons Appliances in Bonifacio Avenue,
Marikina
Air Conditioner Robinsons Appliances in Bonifacio Avenue,
Marikina
Books To be borrowed from our trusted friends and to
 be asked to other people to give textbooks as
donations.

PLANNED CAPACITY AND FUTURE CAPACITY

As starting entrepreneurs, our café will have maximum of 35 seating capacity. Given that
we are just starting we will continue to plan and upgrade our business. Our target future capacity
will be a maximum of 50 seating capacity.

TERMS AND CONDITION OF PURCHASE OF EQUIPMENT

In purchasing the equipment, the raw materials will be bought by us and not delivered
since the raw materials can be easily found at the local market.

FACTORY LOCATION

Café-ling factory will be found at Rockford Center McArthur Highway Brgy.

Salapungan, Angeles City.

MATERIALS AND EQUIPMENT REQUIRED AND SOURCES OF SUPPLY

COFFEES:
ESPRESSO
Material Sources Price
Coffee/Espresso Kape Umali Coffee P 550
Creamer Nestle P 172
Sugar Dalisay P 50
Raw Sugar Cube Raw Brown Sugar Cubes
P 200
Organic Muscovado
Water A.R.M. Water Refilling
P 35
Station

CAF MOCHA
Material Sources Price
Coffee/Espresso Kape Umali Coffee P 550
Milk Nestle P 120
Mocha Sauce Walmart P 120

WhippedSyrup
Vanilla Cream Walmart
McCormick P 60
80
 

ICED COFFEE
Material Sources Price
Coffee granules Kape Umali Coffee P 250
Sugar Dalisay P 50
Fat-free milk Dalisay P 80
Chocolate syrup Walmart P 80
Vanilla extract McCormick P 60
Ice cubes Local Market P 50

BLACK COFFEE
Material Sources Price
Instant Coffee Kape Umali Coffee P 250
Brown Sugar Dalisay P 70
Water A.R.M. Water Refilling
P 35
Station

CAPPUCCINO
Material Sources Price
Milk Nestle P 120
Cinnamon stick Sri Lanka Cinnamon P 150
Strong coffee Kape Umali Coffee P 250
Sugar Dalisay P 50
Ground cinnamon Sri Lanka Cinnamon P 150

SANDWICHES:
EGG SALAD SANDWICH
Material Sources Price
Eggs Local Market P 80
Mayonnaise Local Market P 80
Salt Local Market P 50
Pepper Local Market P 50
White bread Walmart P 80

TUNA SANDWICH
Material Sources Price
Tuna Flakes Century Pacific Food P 150
Mayonnaise Local Market P 80
Onion Local Market P 50
White Bread Walmart P 80

BACON WITH EGG SANDWICH

Material Sources Price
Sour cream Walmart P 65
Bread Walmart P 80
Onions Local Market P 50
American cheese Walmart P 80
Eggs Local Market P 80
Bacon strips Walmart P 120
Butter Dairy Cream P 129

CHICKEN SANDWICH
Material Sources Price
Cooked Chicken Local Market P 150
 

Celery Local Market  P 50

Onion Local Market P 50
Mayonnaise Local Market P 80
Salt Local Market P 50
Pepper Local Market P 50
Bread Walmart P 80

 DESSERTS:
CHOCOLATE CAPPUCCINO CHEESECAKE
Material Sources Price
Chocolate Cookie Crumbs Candy Corner P 100
Butter Dairy Cream P 129
Ground Cinnamon Sri Lanka Cinnamon P 150
Cream Cheese Walmart P 100
White Sugar Local Market P 50
Eggs Local Market P 80
Semisweet Chocolate Candy Corner P 80
Whipping Cream Walmart P 80

BLUEBERRY CHEESECAKE
Material Sources Price
Graham Cracker Crumbs Candy Corner P 100
Unsalted Butter Dairy Cream P 100
Sugar Local Market P 50
Cream Cheese Walmart P 100
All-Purpose Flour Local Market P 80
Eggs Local Market P 80
Sour Cream Walmart P 65
Milk Nestle P 120
Vanilla Extract McCormick P 29
All-Fruit Blueberry Spread Gourmet Michigan P 100
Frozen Blueberries Gourmet Michigan P 150

BROWNIES
Material Sources Price
Butter Dairy Cream P 129
Sugar Local Market P 50
Eggs
Vanilla Extract Local Market
McCormick P 29
P 80
Unsweetened Cocoa Powder Local Market P 80
Flour Local Market P 10
Salt Local Market P 10
Baking Powder Local Market P 47
Confectioner Sugar Local Market P 80

CHOCOLATE CAKE
Material Sources Price
Butter Dairy Cream P 129
Eggs Local Market P 80
Sugar Local Market P 50
Flour Local Market P 10

Unsweetened
Baking Soda Cocoa Powder Local Market 80
P 50
Baking Powder Local Market P 50
 

Vanilla McCormick P 29
Milk Nestle P 120

COOKIES AND CREAM

Material Sources Price
Heavy Cream Local Market P 80
Whole Milk Nestle P 150
Sugar Local Market P 50
Vanilla Extract McCormick P 29
Chocolate Sandwich Cookies Candy Corner P 100

LABOR

We have a total of 12 employees including ourselves filling up the other positions so that
we can use the skills that we have learned from being TLE teachers.

COST OF LABOR

Every day the employee will have 320 pesos which on the end of the month they will
have a total of 9, 600 pesos.

LABOR AVAILABILITY

As owner whom serves as employees of this business, we will make sure that we are
always able to give the customers the comfort they are going to need. We will make sure to be
available for them.

LABOR PRODUCTIVITY

As owners of this business we should not treat our employees different from us. Because
we are not just owners but also employees that is why we should understand them the most.
When the employees feel that the ambiance on their working environment is light, they will be
inspired to work.

FACTORY OVERHEAD EXPENSES

Our factory overhead expenses include factory rent and utilities. Our rent for the lot and
 building is 40,000 pesos a month wherein the renovation have
h ave cost 200, 000.

PRODUCTION COST

The business’ fixed cost is 200, 000  pesos and the variable cost is 780,
78 0, 800 which leads
lead s
to the grand total of 980,800.  
 

VII. ORGANIZATIONAL AND MANAGEMENT PLAN

Form of Business
The Café-ling is limited partnership composed of one (1) general partner, and three (3)
limited partners. It has been agreed that the general partner will be liable up to the extent of their
 personal properties,
pro perties, while the limited partners will not be personally liable for the obligations of
the partnership but will just be liable and limited in their capital contribution.
Organizational Structure
Café-ling is a partnership owned by one (1) general partner and three (3) limited partners.
All profits will be divided according to their capital contribution, and the partnership’s debts are
to the extent of the separate property of the general partners.
Management roles will be assigned to partner Rachel B. David as the Store Manager who
will be in charge of the overall management of the business and responsible for the production of
the business will be assigned to the other partners.
Café-ling is open daily (Monday-Sunday) from 10:00am-8:00pm. The business will not
 be attending transactions that involve deliveries.

Organizational Chart

Business Experience and Qualifications of the Entrepreneur

Café-ling assures the quality of their products and have relaxing feeling for the ambiance
of the shop. We also assure the security of our customers.
The owners of the Café-ling have attended seminars and workshops about managing the
 business. The staffs were well-trained to serve
se rve the customers.
 

Pre-Operating Activities
First to be done is to register our business Café-ling as corporation in the Department of
Trade and Industry (DTI) and Security and Exchange Commission (SEC). Subsequently, a
Barangay Clearance will also be needed in order to get a Mayor’s permit and Business permit.
Also, a Tax Registration Number or TIN will be accomplished. In addition are permits from the
City Government of Sanitary Permit and D epartment of Health’s Food and Drug Administration
(FDA). Finally, permits from the Social Security System (SSS), PhilHealth and Pag-ibig for the
employees, and a permit from Department of Labor and Employment (DOLE) will be completed
last.
In order to promote the business until it reaches to the desired target market, different
marketing strategies and sales strategies will be used so as to entice the customers to visit our
café.
The promotions will begin with using social media, specifically Facebook and Instagram.
The strong effect of social media would be a great help so as disseminate word about our
 business. From there, it would be expected that it will reach multiple audiences. The social
so cial media
 promotion will emphasize on showcasing a sample poster and flyer which contains sufficient
information regarding what the business offers and where it is located.
In addition, a video advertisement will be posted in the Facebook page of the business so
as to be watched by different users. Also, flyers, brochures, and posters would be posted in
allowed areas. Word of mouth will also be used to promote the business. From there. The owners
intend to let the business be known by the people, until it reaches the desired target market.
Pre-Operating Expenses
For the construction of the place, furniture and other fixtures are estimated to cost PhP
300, 000. For the advertisement of the business will cost PhP 2, 000.
Office Equipment
Our fixed assets are the machines and furniture.
Administrative Expenses
We have some expenses in producing free uniform for the staffs and for their benefits.

VIII. FINANCIAL PLAN

Start-Up Cost

MATERIALS EXPENSES
Construction of the place 200,000

Additional furniture and fixture 100,000

Ingredients for foods and beverages 200,000

Coffee Smallwares and Beverageware 40,000

Coffee Grinder (3) 50,000
 

Espresso Machine (2) 40,000

Water Kettle (2) 5,000
Cooking Equipment 80,000
Refrigerator (2) 70,000
Three-compartment sink 10,000

Display Case 5,500

Work and prepping table 20,000
Monthly Electricity Bill 15,000
Water Bill 2,500
Internet 8,000

6,000
Taxes and Licenses
(3,000 for taxes & 3,000 for License)

Printer (4) 20,000

Air Conditioner ( 2 Units) 30,000

Advertising 2,000
Labor 76,800

Books will come as form of donations from

Books
several people

TOTAL EXPENSES  980,800

The table above shows the total start-up costs that are estimated to be ₱ 3,500,000.00. The
majority of the costs are associated with the renovation of the building and with the furniture and
fixtures for the shop. And the rest of the expenses are for start-up assets cost like machines,

equipments and inventory.

Source of Funds
Source of funds Amount
Owners:
Rachel David P200,000
Shiela Lopez 200,000
Christian Manaois 200,000
Al Phaulayne Ocampo 200,000
Total of owners fund 800,000
Bank Loan 200,000
Total of source of funds 1,000,000
 

The owners will contribute ₱ 800,000.00 and requesting an additional ₱ 200,000.00 in the form of
a bank loan. The Loan is expected to be pay-off within 2 years term noted secured by the SSS
Business Loan.

Business loan requirements: 

First-time entrepreneurs are eligible for a business loan if they meet these eligibility
requirements:
•
  Filipino citizens aged 21 to 65
•   Non-entrepreneurs with at least 2 years of steady
s teady income
•  Good credit standing
Most banks require these documents from prospective borrowers:
•  Signed and completed application form
•  Valid IDs
•  Latest income tax returns
•  Latest bank statements

•
  Certificate of employment
•  Resume of loan applicant
•  Latest pay slips
•  Business permit or DTI/SEC registration certificate
 

2. SECURITY FOR LOAN

SSS Business Loans  Business Development Loan Facility

The lowest of the following:

 –   Loan amount being requested
Maximum Loan Amount  –   Total business project cost
 –   Loan value of collateral
 –   Php500 million

Maximum of 15 years (payable monthly,

quarterly, semi-annually, or annually
Loan Terms
Maximum of 1 year payable monthly (short-
term loan)
Maximum of 5 years (long-term loan)

Interest Rate 7.51

8 % year
3-5 years
10% for 6 years and above

Any collateral acceptable to the SSS-

Acceptable collaterals
accredited banks and the SSS
 

Loan Payment Schedule

Beginning Total Principal Pending

Year Paid 
Interest Paid 
Balance  
Balance Payment  
Payment Paid  
Paid Balance  
Balance

1 200,000 116,000 16,000 100,000 84,000

2 84,000 84,000 6,720 77,280 0

Column 1: This is simply the year that the loan is outstanding.

Column 2: This is the beginning balance of the loan of 500,000. You can see how that balance is
reduced every year by that amount of the principal paid on the loan. The principal is to be paid in
equal annual installments which would make the principal payments 100,000 per year for the
five-year term of the loan.
Column 3: Total payment is calculated: Interest Paid + Principal Paid
Column 4: Interest Payments are calculated as follows: Beginning Balance X .08
Column 5: Principal payments are equal annual payments as specified by the lender
Column 6: Ending
6: Ending Balance for each time period = Beginning Balance - Principal
-  Principal Paid
Amortization Schedule of aa Business
 Business Bank Loan
 

 
Profit and loss Statement
Café-ling’s projected Income Statement of the Business for Year 1  

Revenue P 3,960,000
Less: Cost of P 980,800
Good Sold
 _________________________
Gross Profit P 2, 979,200 

Less: Operational Expenses

Salaries and wages P 768,000
Rent P 480,000
Taxes P 72,000
Electricity and Water Bill P 180,000
 _________________________
Total P 1,500,000 

Net Profit  P 1,479,200

Cash Flow Statement

Café-ling’s projected Cash Flow for year 1  

Beginning Cash Balance P 19,200

Cash Sales P 3,960,000
 _______________________
Total Cash Inflow P 3,979,200 
Cash Outflow:
Expenses P 1,500,000
Equipment P 115,000
 ______________________

Total Cash Outflows P 1,165,000

Ending Cash Balance P 2,814,200
 

Balance Sheet
Café-ling’s projected Balance Sheet for year 1  
Current Assets:
Cash P 19,200
Inventory P 200,000
Account receivables P 150,000
 ___________________
Total current Assets P 369,200

Fixed Asset:
Land 0
Building 0
Equipment P 115,000
 ____________________
Total Fixed Assets P 115,000

Total Assets P 484,200

Liabilities
Current Liabilities:
 Notes Payable P 200,000
Accrued Expenses P 768,000
 _________________________
Total Current Liabilities P 968,000 

Long Term Liabilities 0

Total Liabilities P 1,452,200

Stock holder’s Equity: 

Common stocks 1,500,000

Retained Earnings P 679,200
Stock holder Equity P2,179,200
 

BREAK EVEN POINT (BEP)

4,500,000

4,000,000 Liabilities

3,500,000
sales per month

3,000,000
2,500,000

2,000,000

1,500,000

1,000,000

500,000

MONTH SALES LIABILITIES

January 330,000 484,200
February 528,000 682,200
March 726,000 880,200
April 924,000 1,078,200
May 1,122,000 1,232,200
June 1,518,000 1,452,200
July 1,914,000 1,552,200
August 2,112,000 1,652,200
September 2,706,000 1752200
October 3,102,000 1852200
 November 3,508,000 1952200
December 3,960,000 2,200,000

RETURN OF INVESTMENT
o  Reached by the month of May and June.