VIII.

Financial Plan

The financial plan will cover the following:

• Required Cost of Start-Up

• Profit and Loss
• Cash Flow
• Balance Sheet

START-UP COSTS
The owners invested an amount of P4,000,000 all in all to meet the stated start-up costs including
commercial space rental and other start-up expenses.

START-UP COSTS

START-UP ASSETS
Renovations and Décor 20,000/ sqm
Kitchen supplies and equipment 1,000,000
Furniture and gadgets 400,000
Emergency funds 605,500
Miscellaneous 156,330
TOTAL START-UP ASSETS 2,181,830

START-UP EXPENSES
Staff salaries 350,000
Insurance 25,000
Commercial Space/Rent 40,000
Licenses and permits 600,000
Legal and Accounting Fees 50,000
Utility Deposits 20,000
Signage/Advertisements 52,500
Food and Beverage Costs 400,000
Other Initial Costs 250,550
TOTAL START-UP EXPENSES 1,788,050

TOTAL REQUIRED START-UP COSTS 3,969,880

PRO-FORMA PROFIT AND LOSS

2022 2023 2024

Sales 12,500,350 15,500,323 22,450,630
Cost of Goods sold 5,000,000 5,100,000 8,000,000

Gross Profit 7,500,350 10,400,323 14,450,630

Less: EXPENSES
Staff Salaries 2,000,000 2,000,000 2,000,000
Insurance 650,000 650,000 650,000
Legal and Accounting 20,000 35,000 50,000
Utilities 370,000 390,000 410,000
Repairs 200,000 250,000 350,000
Rent 1,300,000 1,300,000 1,300,000
Miscellaneous Expense 400,000 450,000 500,000
Depreciation 400,000 400,000 400,000

Total Operating Expense 5,340,000 5,475,000 5,660,000

Profit Before Interest and Taxes 2,160,350 4,925,323 8,790,630

EBITDA 2,160,350 4,925,323 8,790,630

Interest Expense 0 0 0
Taxes Incurred 216,035 492,532 879,063

Net Income/ Loss 1,944,315 4,432,791 7,911,567

PRO-FORMA CASHFLOW – 2022

January February March April

Cash Flow from Operations
Net Sales 1,000,000 1,200,000 1,080,100 1,000,500
Subtotal cash from Operations 1,000,000 1,200,000 1,080,100 1,000,500
Expenditures
Expenditures from Operations:
Cash Spending 350,000 420,000 430,000 450,550
Bill Payments 40,000 45,000 50,000 53,000
Subtotal spent on Operations 390,000 465,000 480,000 503,330

Net Cash Flow 610,000 735,000 600,100 497,170

May June July August

Cash Flow from Operations
Net Sales 760,000 850,000 900,000 750,000
Subtotal cash from Operations 760,000 850,000 900,000 750,000
Expenditures
Expenditures from Operations:
Cash Spending 480,000 500,000 450,000 388,000
 Bill Payments 40,500 50,000 48,550 44,000
Subtotal spent on Operations 520,500 550,000 498,550 432,000

Net Cash Flow 239,500 300,000 401,450 318,000

September October November December

Cash Flow from Operations
Net Sales 1,550,000 1,308,000 1,000,500 1,560,500
Subtotal cash from Operations 1,550,000 1,308,000 1,000,500 1,560,500
Expenditures
Expenditures from Operations:
Cash Spending 400,000 350,000 480,000 385,500
Bill Payments 40,000 48,550 44,500 50,000
Subtotal spent on Operations 440,000 398,550 524,500 435,500

Net Cash Flow 1,110,000 909,450 476,000 1,125,000

PRO-FORMA CASHFLOWS – 2023

January February March April

Cash Flow from Operations
Net Sales 1,250,000 1,100,000 1,000,000 1,350,000
Subtotal cash from Operations 1,250,000 1,100,000 1,000,000 1,350,000
Expenditures
Expenditures from Operations:
Cash Spending 540,000 500,000 450,000 420,000
Bill Payments 40,000 45,000 50,000 52,000
Subtotal spent on Operations 580,000 545,000 500,000 472,000

Net Cash Flow 670,000 555,000 500,000 878,000

May June July August

Cash Flow from Operations
Net Sales 850,000 900,000 1,300,000 950,000
Subtotal cash from Operations 850,000 900,000 1,300,000 950,000
Expenditures
Expenditures from Operations:
Cash Spending 400,000 350,000 410,000 380,000
Bill Payments 40,000 40,000 55,000 45,000
Subtotal spent on Operations 440,000 390,000 465,000 425,000

Net Cash Flow 410,000 510,000 835,000 525,000

 September October November December
Cash Flow from Operations
Net Sales 900,000 1,050,000 1,200,000 1,100,000
Subtotal cash from Operations 900,000 1,050,000 1,200,000 1,100,000
Expenditures
Expenditures from Operations:
Cash Spending 310,000 410,000 488,000 450,000
Bill Payments 21,500 33,900 44,500 50,000
Subtotal spent on Operations 331,500 443,900 532,500 500,000

Net Cash Flow 568,500 606,100 667,500 600,000

PRO-FORMA BALANCE SHEET

2022 2023 2024

ASSETS
Current Assets
Cash 12,500,350 15,500,323 22,450,630
Inventory 984,900 5,247,200 5,870,400
Other Current Assets 100,000 100,000 100,000
Total Current Assets 13,585,250 20,847,523 28,421,030
Non-Current Assets
Furnitures and fixtures 1,100,000 1,100,000 1,100,000
Equipment 1,000,000 1,000,000 1,000,000
Less: Accumulated Depreciation 300,000 300,000 300,000
Total Fixed Assets 1,800,000 1,800,000 1,800,000
Total Assets 15,385,250 22,647,523 30,221,030

LIABILITIES AND OWNER’S

EQUITY
Current Liabilities
Accounts Payable 6,100,000 4,505,200 5,600,000
Other non-current liabilities 0 0 0
Total Current Liabilities 6,100,000 4,505,200 5,600,000

Non-Current Liabilities 0 0 0
Total Liabilities 6,100,000 4,505,200 5,600,000
Paid in Capital 4,000,000 4,000,000 4,000,000
Retained Earnings (2,565,300) (90,000) 8,533,050
Earnings 6,535,000 12,560,500 8,300,000
Total Owner’s Equity 8,530,000 16,535,500 24,500,000
Total Liabilities and Owner’s Equity 15,385,250 22,647,523 30,221,030