CHAPTER 5 - RPRC New

FINANCIAL ASPECT
SCOPE OF THE FINANCIAL ASPECT
 Introduction
 Executive Summary
 Major Assumptions
 Total Project Cost
 Projected Income Statement
 Vertical Common Size Income Statement
 Horizontal Common Size Income Statement
 Statement of Owner’s Equity
 Projected Cash Flow Statement
 Projected Statement of Financial Performance
 Vertical Common Size Financial Performance
 Horizontal Common Size Financial Performance
 Financial Ratios
a. Liquidity Ratio
b. Profitability Ratio
c. Efficiency Ratio
 Payback Period
 Financial Schedules
 Financial Notes
Introduction
Financial Aspect calculates the returns on investment, sources of capital, how much
capital is needed and other financial considerations. It involves the capability of the proposed
business to raise the appropriate funds needed to implement it.
In this section, it discusses the financial forecast of RESUS COMPANY. Also, to identify
if the proposed business is feasible or not by evaluating and assessing the financial statements
that comprises all the flow of expenses in recent day to future activities.
EXECUTIVE SUMMARY
 The form of business adopted by the company is partnership.
 The total project cost is Php 20,000,000.00.
 A total amount of Php 3,333,333.333 was invested per owner.
 The six owners of the business are Niño Mejias, Cleo Mallyn C. Hongoy, Blessy Joy P.
Larida, Cathleen Marcy B. Pido, Rommel N. Baculio and Kim Sandigan,
MAJOR ASSUMPTIONS
 Business has an operating cycle of 12 months calendar year.
 Depreciation is based on the straight-line method.
 SSS, PhilHealth and Pag-ibig contribution will be based on the monthly
salaries of the employees.
 There is only 312 working days in a year.

INCOME STATEMENT
Income statement’s purpose is to show how much profit or loss an organization generated
during a reporting period. It provides the financial earnings performance of the entity over a
specific period of time.
Shows the projected income statement of RESUS COMPANY for two projected years.
Projected income statement of RESUS COMPANY

For the years ended December 31, 2021, 2022
The income statement shows the net income that will be gained by the RESUS
2021 2022 COMPANY
*REVENUE during its
Pre-operating expenses 4,423,210.50 ------ first 2years
OPERATING EXPENSES of
operation.
Direct materials 398,519.87 398,519.87
The official
Worker’s Salaries 3,987,651.51 3,987,651.51
business
Holiday Pay 743,634.064 743,634.064
calendar to
13th Month Pay 331,070.00 331,070.00
be used by
Depreciation 144,542.06 144,542.06
the business
Utilities 583,191.00 583,191.00
is the
Repairs & maintenance 200,000.00 200,000.00
SSS contribution 252,960.00 252,960.00
PhilHealth contribution 333,237.00 333,237.00
PAG-IBIG contribution 144,496.00 144,496.00
Selling expenses 106,526.08 106,526.08
Supplies 39,340.00 39,340.00
Permits and License 2,215.00 1,315.00
TOTAL EXPENSES 11,690,593.08 7,267,382.58
Net Income before tax 319,326.82 2,168,217.70
Less: Tax expenses (Train ------- 108,450.10
Law)
Net Income after tax 319,326.82 2,059767.60

conventional calendar year where the accounting period is from January 1 to December 31 of the
same year. Based on the result the company is already gaining profit on its first year that is
amounting Php 319,326.82 and it increases in the succeeding it increases in the succeeding years
with Php 2,059767.60 respectively. This means that through the years, net income of the
company is slowly gaining more profit. Tax computation is based on the TRAIN LAW which
states if the net income is between the income bracket if Php 2 Million – 3 Million; only 20% of
excess of net income less Php 2 Million will be charge as tax expense.
VERTICAL COMMON-SIZE INCOME STATEMENT
Vertical common-size income statement is an income statement in which each account is
expressed as a percentage of the value of sales. This type of financial statement can be used to
allow for easy analysis between companies or between time periods of a company. Common size
income statement analysis allows an analyst to determine how the various components of the
income statement affect a company's profit.
Vertical common-size income statement of RESUS COMPANY.
For the years December 31, 2021, 2022
2021 (%) 2022 (%)
*REVENUE 100 100
Pre-operating expenses 18 0
OPERATING EXPENSES ------- -------
Direct materials 6.54 6.57
Recycled paper Expenses 3.31 3.32
Uniform Expenses 0.25 0.26

Worker’s Salaries 17.13 17.39
Holiday Pay 2.89 2.90
13th Month Pay 2.60 2.62
Depreciation 4.49 4.36
Utilities 5.15 5.13
Repairs & maintenance 0.12 0.23
SSS contribution 1.94 1.97
PhilHealth contribution 0.36 0.36
PAG-IBIG contribution 0.26 0.25
SELLING EXPENSES
Supplies 0.98 0.95
*Administrative expenses
Salaries 10.86 10.91
Permits and License 0.12 0.07
TOTAL EXPENSES 97.21 76.89
Net Income before tax 2.79 23.11
Less: Tax expenses (Train 0 1.18
Law)
Net Income after tax 2.79 21.93
The common size income statement shows he percentage of each component of the
income statement from the total revenue of the RESUS COMPANY obtain each year. Common
size financial statements help to analyze and compare a company's performance over several
periods with varying sales figures. The common size percentages can be subsequently compared
to those of competitors to determine how the company is performing relative to the industry.
Based on the result, rent incurred the highest percentage wherein it consists the rental payable
obligation of the business. Salaries and wages incurred the second highest percentage wherein it
consists the total annual salaries payable to three different employees, the manager and two
laundry workers.
HORIZONTAL COMMON-SIZE INCOME STATEMENT
The restated amounts are known as a common-size income statement. A common-size
income statement allows you to compare your company's income statement to another company's
or to the industry average. Horizontal common-size income statement analysis looks at amounts
on the financial statements over the past years.
Shows the horizontal common-size projected income statement of RESUS COMPANY
for two succeeding years.
Horizontal common-size income statement for RESUS COMPANY.

2021 2022
(%) (%)
*REVENUE ----- 3.00
Pre-operating expenses ----- -100
OPERATING EXPENSES
Direct materials ----- 3.50
Recycled paper Expenses ----- 3.50
Uniform Expenses ----- 3.50
Worker’s Salaries ----- 3.50
Holiday Pay ----- 3.50
13th Month Pay ----- 3.50
Depreciation ----- 0.00
Utilities ----- 2.75
Repairs & maintenance ----- 100
SSS contribution ----- 4.86
PhilHealth contribution ----- 3.50
PAG-IBIG contribution ----- 0.00
SELLING EXPENSES
Supplies ----- -100
*Administrative expenses
Salaries ----- 3.50
Permits and License ----- -41.67
TOTAL EXPENSES ----- -18.53
Net Income before tax ----- 754.10
Less: Tax expenses (Train ----- 0.00
Law)
Net Income after tax ----- 710.67

Presented is the projected income statement of the business from year 2021 to 2022 in
order to easily see which expenses make up the largest portion of sales and to make comparison
between two consecutive years. Under operating expense, pre-operating has the highest incurred
rate since the business is still starting up, the management decided to deduct all the necessary
pre-operating expense on the first year. There will be an inflation rate increase of 3% to all
operating expense.
OWNER’S EQUITY
Owner's equity represents the owner's investment in the business minus the owner's
draws or withdrawals from the business plus the net income (or minus the net loss) since the
business began.
Shows the statement of owner’s equity of RESUS COMPANY for two projected years.
Statement of owner’s Equity for RESUS COMPANY
For the years ended 2021, 2022
Schedule 2021 2022
Owner’s equity, 20,000,000.00 20, 319,326.82
beginning
Add: net 319,326.82 2,059767.60
income/loss
Owner’s equity 20, 319,326.82 22,379,094.42

ending
The kind of business is a sole proprietorship business wherein the owner, RESUS COMPANY
initial investment is Php 20,000,000.00. The business is already gaining Php 319,326.82 on the
first year and it is already increasing the succeeding years. The first-year cost value is low due to
the operating expenses deducted on that year, since the business is still new, it is justifiable that
first year cost will always be small.
PROJECT CASH FLOW STATEMENT
A cash flow statement is a financial statement that shows how changes in balance sheet
accounts and income affect cash and cash equivalents, and breaks the analysis down to operating,
investing and financing activities.
Shows the statement of owner’s equity of RESUS COMPANY for two projected years.
Cash flow statement for RESUS COMPANY
For the year ended 2021, 2022
2021 2022
Operating cash flow
Net income (loss) for the 319,326.82 2,059767.60
year
Depreciation expenses – 97.62 97.62
furniture & fixture

Depreciation expenses – 111,111.11 111,111.11
production property &
equipment
Depreciation expenses – 33,333.33 33,333.33
machineries & equipment
Increase in employee 26,055.99 2,235.00
benefit, payable
Increase in utilities, 15,041.25 1,083.25
Payable
TOTAL ADDITIONS 504,966.12 2,207,627.91
Net cash provided by 504,966.12 2,207,627.91
operating activities
*Investing cash flow
Acquisition of production 4,303,910.00
property and equipment
Acquisition of machineries 4,799,568.03
and equipment
Net cash used in investing 9,103,478.03
activities
Financing cash flow

Net cash provided by 20,000,000.00
financing activities
Increase in cash 17,696,823.80 7,607,954.00
Add: cash balance, 17,696,823.80
beginning
Cash balance, Ending 17,696,823.80 25,304,777.80
The results show that the net income on the first year is negative since pre-operating
expenses are deducted on the first year. There is a 3.5% increase of purchases every year on the
main material since demand also increases by 3.5%. Depreciation expenses constitutes the
different operating activities present in the business. Furthermore, there is a function of cash at
the end of each term. The net cash flow from operating activities gradually changes each year.
The cash at the end of the period also increases the succeeding years.
STATEMENT OF FINANCIAL PERFORMANCE
Financial position, defined as the status of financial well-being regarding a company, is
important to every single business. The financial position of a company is measured by the
performance it takes in company financial statements: a positive and growing cash flow
statement; growing profits in the profit and loss statement.
Shows the projected statement of financial performance of RESUS COMPANY for two
projected years.
Projected statement of financial performance for RESUS COMPANY.
December 31, 2021, 2022
2021 2022
ASSETS
*Current Assets
Cash 17,696,823.80 25,304,777.80
Total current assets 17,696,823.80 25,304,777.80
*Noncurrent Assets
Furniture & Fixtures 8,786.00 5,857.35
Production property & 4,303,910.00 2,869,273.33
equipment
Machinery 4,799,568.03 3,199,712.02
Leasehold Improvement 238,500.00 159,000.01
Total noncurrent assets 9,350764.03 6,233.842.71
TOTAL ASSETS 27,047,587.83 31,538,620.51
LIABILITIES EQUITY
*Liability
Benefits Payable 1,061,763.00 1,102,503.15
Utilities Payable 15,041.25 15,454.50
TOTAL LIABILITIES 1,077,104.25 1,117,957.65
*Equity
Owner’s capital 20, 319,326.82 22,059767.60

Total owner’s capital 20, 319,326.82 22,059767.60
TOTAL LIABILITIES & 27,047,587.83 31,538,620.51
EQUITY
The results show the financial position of the proposed business, the business balances in
both assets, liabilities and owner’s equity at the end of each year. The business total assets
gradually increase through the years. Cash is too high, which makes the business to have higher
current assets and there are no long-term payables in the business.
VERTICAL COMMON-SIZE FINANCIAL PERFORMANCE
Vertical common-size analysis in financial performance is a popular method of financial
statement analysis that shows each item on a statement as a percentage of a base figure within
the statement.
Shows the horizontal common-size financial performance computation of RESUS
COMPANY for two projected years.
Vertical common-size financial performance for RESUS COMPANY.
2021 2022
(%) (%)
ASSETS
*Current Assets 82.36 90.93
Cash 82.36 90.93

Total current assets
*Noncurrent Assets 2.22 1.14
Furniture & Fixtures 1.93 0.99
Production property & 0.17 0.09
equipment
Machinery 13.32 6.85
Total noncurrent assets 100 100
TOTAL ASSETS
LIABILITIES & EQUITY
Liabilities 0.56 0.45
Benefits Payable 0.11 0.09
Expanded withhold tax 0.56 0.44
payable
Utilities payable 2.23 1.72
Rent Payable 3.46 2.70
Total liabilities
*Equity
Owner’s capital 96.54 97.30
Total owner’s capital 100 100
TOTAL LIABILITIES & 82.36 90.93
EQUITY
HORIZONTAL COMMON-SIZE FINANCIAL STATEMENT
Horizontal analysis looks at the trend of financial performance over multiple period using
a specified base period. Horizontal analysis typically shows the changes from base period in
dollar and percentage.
Shows the horizontal common-size financial performance computation of RESUS
COMPANY for four projected years.
Horizontal common-size financial performance for RESUS COMPANY.
2021 2022
(%) (%)
ASSETS
*Current Assets
Cash ----- 43.07
Total current assets ----- 43.07
*Noncurrent Assets ----- -33.33
Furniture & Fixtures ----- -33.33
Production property & ----- -33.33
equipment
Machinery ----- -33.33
Total noncurrent assets ----- -33.33
TOTAL ASSETS ----- 29.59

LIABILITIES & EQUITY
*Liabilities
Benefits Payable ----- 3.84
Expanded withhold tax ----- 0.00
payable
Utilities payable ----- 2.75
Total liabilities ----- 1.07
*Equity
Owner’s capital ----- 30.53
Total owner’s capital ----- 30.53
TOTAL LIABILITIES & ----- 29.50
EQUITY
Based on the result, there is enough cash to operate the business since cash increases
from 2021-2022. It has more assets which mean that the business’ investment is more for its
daily operation. Total liabilities constitute less percentage since the cost under it is the necessary
payable of the workers and the rentals in the company. The projection of the total liabilities
decreases in the next three years, it shows that the company has minimized their expenses in the
succeeding years. This means that the company is trying to properly manage the business. In the
partners’ equity, the company was able to utilize their investment since it continuously increases
in the succeeding years.

FINANCIAL RATIO
Financial ratios are relationships determined from a company’s financial information and
used for comparison purposes.
LIQUIDITY RATIO
Measures a company’s ability to pay debt obligations and its margin of safety through the
calculation of metrics.
Shows the computation of current ratio of RESUS COMPANY for two (2) projected
years.
Current ratio for RESUS COMPANY
2021 2022
Current asset 17,696,823.80 25,304,777.80
Current liabilities 1,077,104.25 1,117,957.65
Current ratio 16.43 22.63
Formula: Current Ratio= Current Assets/ Current Liabilities
Results shows that current asset is much bigger than its liability, this explains that the
business has more assets to use than its liabilities to pay therefore the company has all the means
to pay off its liabilities. Current liabilities increase the succeeding years, this includes the
different payables of the business that increases 3.5% every year. Current asset increases due to
the increase in demand of the business. A high current ratio is not good in the company because
it signifies that the company has not used its assets well hence, the company should have
invested to other ventures to become more liquid.

PROFITABILITY RATIO
Profitability ratio is a measure of profitability which is a way to measure a company’s
performance. Profitability is simply the capacity to make a profit, and a profit is what is left over
from income earned after you have deducted all costs and expenses.
Shows the computation of return on equity ratio of RESUS COMPANY0 for two (2)
projected years.
Return on equity ratio for RESUS COMPANY
2021 2022
Net income 319,326.82 2,059,767.60
Owner’s equity 20, 319,326.82 22,059,767.60
Rate of return on equity 1.57 % 9.34 %
Formula: Rate of return on equity= (Net Income/Owner’s Equity) X 100%
The result shows that net income on the first year is very low since the business has just
started to operate. The proposed business has decreasing ROE. This indicates that the company
was not effective in using its owner’s equity to become more profitable which can be an
indicator of risk for possible losses in the business.
PERIOD PAYBACK
Payback period is the amount of time it takes for an investment’s cash flows to equal its
initial cost. In other words, it’s the amount of time it takes for an investment to pay for itself.
This is an important time-based measurement because it shows management how lucrative and
risky an investment can be. It is a simple way to evaluate the risk associated with a proposed
project.
Shows the computation of payback period of RESUS COMPANY for two projected
years.
Payback period for RESUS COMPANY
Year Annual cash flow Initial investment No. of years
2021 17,696,823.80 20,000,000.00 1.13
Payback Period 1.13
Formula: Payback Period = Initial Investment / Annual Cash Flow
RESUS COMPANY owner has an initial investment of Php 20,000,000.00 and an end
cash flow 2021 balance of Php 17,696,823.80. It takes 1.13 years length of time to recover the
cost of the investment. Therefore, the proposed RESUS COMPANY business is FEASIBLE.
Schedule 1
PRE-OPERATING EXPENSES
Description Schedule 2021 2022
(Pesos) (Pesos)
Salaries expenses 18 4,303,910.00 -------
Utilities expenses 13 98,046.75 -------
Promotional expense 15 22,102.00
TOTAL 4,423,210.50 -------

Schedule 2
SUMMARY OF SALARIES EXPENSES
Annual salaries expenses 4 4,061,277.58 4,061,277.58
for operating expense
TOTAL annual salaries 4,061,277.58 4,061,277.58
expense
Schedule 3
SALARIES EXPENSES FOR OPERATING EXPENSE
Daily Rate 2021 Overtime 2022 Overtime Pay
(Pesos) Pay per hour (Pesos) per hour
(25%) (25%)
General Manager (1) 1,850.00 462.50 1,850.00 462.50
Multiplied by Total 312 ------- 312 -------
Number of Regular
Working Days in a Year
Subtotal (Annual regular 577,200.00 ------- 577,200.00 -------
work)
Multiplied by total number ------- 89 ------- 89
of overtime day in a year
Subtotal (annual for ------- 41,162.50 ------- 41,162.50
overtime)
Overall subtotal 618,362.50 618,362.50
Engineering/Maintenance 988.08 247.02 988.08 247.02
Supervisor (1)
Operation Supervisor (1) 798.08 199.52 798.08 199.52
Quality Control Inspector 514.62 128.66 514.62 128.66
(1)
Accountant (1) 899.62 224.91 899.62 224.91
Auditor (1) 667.69 166.92 667.69 166.92
Human Resource Officer 692.31 173.08 692.31 173.08
(1)
Machineries Operator (2) 498.85 124.71 498.85 124.71
Advertising Officer (1) 769.23 192.31 769.23 192.31
Sales Associate (1) 525.77 131.44 525.77 131.44
Plant Mechanic (1) 673.08 168.27 673.08 168.27
Electrician (1) 500.00 125.00 500.00 125.00
Plant Utility (1) 447.69 111.92 447.69 111.92

Security (2) 1259.23 314.81 1259.23 314.81
Utility Driver (2) 730.77 182.69 730.77 182.69
Total 9,965.02 2,491.26 9,965.02 2,491.26
Multiplied by Total 312 ------- 312 -------
Number of Regular
Working Days in a Year
Subtotal (Annual regular 3,109,086.24 ------- 3,109,086.24 -------
work)
Multiplied by total number ------- 134 ------- 134
of overtime day in a year
Subtotal (annual for ------- 333,828.84 ------- 333,828.84
overtime)
Overall subtotal 3,442,915.08 3,442,915.08
TOTAL 4,061,277.58 4,061,277.58
Schedule 4
SUMMARY OF HOLIDAY PAY
Description 2021 2022
(Pesos) (Pesos)
General Manager (1) 1,850.00 1,850.00
Sales/Marketing Supervisor (1) 918.46 918.46

Engineering/Maintenance Supervisor (1) 988.08 988.08
Operation Supervisor (1) 798.08 798.08
Quality Control Inspector (1) 514.62 514.62
Accountant (1) 899.62 899.62
Auditor (1) 667.70 667.70
Human Resource Officer (1) 692.31 692.31
Machineries Operator (2) 498.85 498.85
Advertising Officer (1) 769.23 769.23
Sales Associate (1) 525.77 525.77
Plant Mechanic (1) 673.08 673.08
Electrician (1) 500.00 500.00
Plant Utility (1) 447.69 447.69
Security (2) 1259.23 1259.23
Utility Driver (2) 730.77 730.77
TOTAL 12,732.46 12,732.46
Multiplied by 1 + % added 4 4
Multiplied by working regular holidays 12 12
Total working regular holiday pay 611,206.08 611,206.08
General Manager (1) 1,850.00 1,850.00
Sales/Marketing Supervisor (1) 918.46 918.46
Engineering/Maintenance Supervisor (1) 988.08 988.08
Operation Supervisor (1) 798.08 798.08
Quality Control Inspector (1) 514.62 514.62

Accountant (1) 899.62 899.62
Auditor (1) 667.70 667.70
Human Resource Officer (1) 692.31 692.31
Machineries Operator (2) 498.85 498.85
Advertising Officer (1) 769.23 769.23
Sales Associate (1) 525.77 525.77
Plant Mechanic (1) 673.08 673.08
Electrician (1) 500.00 500.00
Plant Utility (1) 447.69 447.69
Security (2) 1259.23 1259.23
Utility Driver (2) 730.77 730.77
TOTAL 12,733.46 12,733.46
Multiplied by 1 + % added 1.30 2.30
Multiplied by number of working special 8 8
holidays
Total working special holiday pay 132,427.984 132,427.984
Total holiday pay 743,634.064 743,634.064
Schedule 5
SUMMARY OF 13TH MONTH PAY
Description (Monthly Salary) 2021 2022

(Pesos) (Pesos)
General Manager (1) 48,100.00 48,100.00
Sales/Marketing Supervisor (1) 23,880.00 23,880.00
Engineering/Maintenance 25,690.00 25,690.00
Supervisor (1)
Operation Supervisor (1) 20,750.00 20,750.00
Quality Control Inspector (1) 13,380.00 13,380.00
Accountant (1) 23,390.00 23,390.00
Auditor (1) 17,360.00 17,360.00
Human Resource Officer (1) 18,000.00 18,000.00
Machineries Operator (2) 12,970.00 12,970.00
Advertising Officer (1) 20,000.00 20,000.00
Sales Associate (1) 13,670.00 13,670.00
Plant Mechanic (1) 17,500.00 17,500.00
Electrician (1) 13,000.00 13,000.00
Plant Utility (1) 11,640.00 11,640.00
Security (2) 32,740.00 32,740.00
Utility Driver (2) 19,000.00 19,000.00
Subtotal 331,070.00 331,070.00
Multiplied by Number of Months 12 12
Worked
Divided by 12 12 12
Total Annual 13th Month Pay 331,070.00 331,070.00

Schedule 6
DEPRECIATION EXPENSES – FURNATURE AND FIXTURE
Cost 8,786.00 8,786.00
Accumulated Depreciation ------- 97.62
Depreciable Amount 8,786.00 8,688.38
Remaining Useful Life 6 5
Depreciation Expense 97.62 97.62
Schedule 7
DEPRECIATION EXPENSE – PRODUDCTION PROPERTY AND EQUIPMENT
Descriptive 2021 2022
Cost 10,000,000.00 10,000,000.00
Accumulated Depreciation ------- 111,111.11
Depreciable Amount 10,000,000.00 9,888,888.89
Depreciation Expense 111,111.11 111,111.11

Schedule 8
DEPRECIATION EXPENSE – MACHINERY
Descriptive 2021 2022
Cost 3,000,000.00 3,000,000.00
Accumulated Depreciation ------- 33,333.00
Depreciable Amount 3,000,000.00 2,966,666.67
Depreciation Expense 33,333.33 33,333.33
Schedule 9
SUMMARY OF DEPRECIATION EXPENSE
Furniture and Fixture 7 97.62 97.62
Production Property 8 111,111.11 111,111.11
and Equipment
Machineries and 9 33,333.33 33,333.33
Equipment
Total 144,542.06 144,542.06

Schedule 10
UTILITY EXPENSE
Monthly Electricity 45,468.00 45,468.00
Expense
Monthly Water Expense 1432.25 1432.25
Monthly Internet Expense 1699.00 1699.00
Total Monthly Utilities 48,599.25 48,599.25
Expense
Multiply by Number of 12 12
Months
Total Forecasted Utilities 583,191.00 583,191.00
Expense
Schedule 11
REPAIRS AND MAINTENANCE EXPENSE

Total Cost of Equipment 3,000,000.00 -------
Percentage of Expense 0.10 0.15
Repairs and Maintenance 200,000.00 200,000.00
Expense
Schedule 12
PRE-OPERATING UTILITIES EXPENSE
For the year ended 2020
2020 2021
Monthly Electricity Expense 45,468.00 -------
Monthly Water Expense 1432.25 -------
Monthly Internet Expense 1699.00 -------
Monthly Telephone Expense 848.25
Total Monthly Utilities 48,599.25 -------
Expense
Multiply by Number of 1 -------
Months
Total Forecasted Utilities 98,046.75 -------
Expense
Schedule 13
EMPLOYEE BENEFITS
SSS Contribution 21 252,960.00 252,960.00
PhilHealth 22 333,237.00 333,237.00
Contribution
PAG-IBIG 23 144,496.00 144,496.00
Contribution
13th Month Pay 6 331,070.00 331,070.00
Total 1,061,763.00 1,061,763.00
Schedule 14
PROMOTIONAL EXPENSE
(Pesos) (Pesos)
Flyers 600.00 -------

Tarpaulins 300.00 -------
Entrance Arc Balloons 1,500.00 -------
Flower Wreath 4,400.00 -------
Priest Stipend 1,000.00 -------
Foods and Drinks 3,000.00 -------
Posters 1,150.00 -------
Ribbon 152.00 -------
Opening Free Service 10,000.00 -------
Total 22,102.00 -------
Schedule 15
SUPPLIES EXPENSE
(Pesos) (Pesos)
First-aid Kit 1,900.00 1,910.00
Janitorial and Cleaning 5,560.00 5,570.00
Supplies
Office Supplies 6,380.00 6,390.00
Uniforms 25,500.00 25,500.00
Total 39,340.00 39,340.00

Schedule 16
PERMITS AND LICENSE
(Pesos) (Pesos)
Barangay Clearance 125.00 125.00
BIR Registration 650.00 ------
Fire and Safety Clearance 200.00 200.00
Mayor's Permit 250.00 -------
Sanitary Permit 70.00 70.00
Environmental Clearance 150.00 150.00
Business Tax Permit-CTC 700.00 700.00
Documentary Stamp for 70.00 70.00
Leasing
Total 2,215.00 1,315.00
Schedule 17
WORKING CAPITAL
(Pesos) (Pesos)
*Pre-operating -------
General Manager (1) 48,100.00 -------
Sales/Marketing Supervisor (1) 23,880.00 -------
Engineering/Maintenance 25,690.00 -------
Supervisor (1)
Operation Supervisor (1) 20,750.00 -------
Quality Control Inspector (1) 13,380.00 -------
Accountant (1) 23,390.00 -------
Auditor (1) 17,360.00 -------
Human Resource Officer (1) 18,000.00 -------
Machineries Operator (2) 12,970.00 -------
Advertising Officer (1) 20,000.00 -------
Sales Associate (1) 13,670.00 -------
Plant Mechanic (1) 17,500.00 -------
Electrician (1) 13,000.00 -------
Plant Utility (1) 11,640.00 -------
Security (2) 32,740.00 -------
Utility Driver (2) 19,000.00 -------
Multiply by Number of Month 1 -------
Subtotal 331,070.00 -------
*Operating
General Manager (1) 48,100.00 -------
Sales/Marketing Supervisor (1) 23,880.00 -------

Engineering/Maintenance 25,690.00 -------
Supervisor (1)
Operation Supervisor (1) 20,750.00 -------
Quality Control Inspector (1) 13,380.00 -------
Accountant (1) 23,390.00 -------
Auditor (1) 17,360.00 -------
Human Resource Officer (1) 18,000.00 -------
Machineries Operator (2) 12,970.00 -------
Advertising Officer (1) 20,000.00 -------
Sales Associate (1) 13,670.00 -------
Plant Mechanic (1) 17,500.00 -------
Electrician (1) 13,000.00 -------
Plant Utility (1) 11,640.00 -------
Security (2) 32,740.00 -------
Utility Driver (2) 19,000.00 -------
Multiply by Number of Month 12 -------
Subtotal 3,972,840.00 -------
Total 4,303,910.00 -------

Schedule 18
DIRECT MATERIALS
*Recycled paper ------- ------- -------
Residential papers 1 Ton 12,124.80 12,124.80
Sorted office papers 1 Ton 122,460.50 122,460.50
*Chemicals ------- ------- -------
Acetone 100 kg 42,436.80 42,436.80
Alcohol 10 metric tons 65,625.50 65,625.50
Detergent 10 metric tons 29,806.80 29,806.80
Enzymes 5 tons 48,499.20 48,499.20
Surfactants 5 tons 566.27 566.27
*Packaging ------- ------- -------
Boxes 100 Boxes 72,000.00 72,000.00
Cover 20 Rolls 5,000.00 5,000.00
Total 398,519.87 398,519.87
Schedule 19
SELLING EXPENSES

Gasoline 102,526.08 102,526.08
Reserve tires (3pcs) 4,000.00 4,000.00
Total 106,526.08 106,526.08
Schedule 20
SSS CONTRIBUTION
For the year of 2021
Employee Monthly Annual Monthly Annual
Salary Salary Contribution Contribution
1st 2nd 1st 2nd
General Manager (1) 48,100.00 577,200.00 800.00 1,600.00 9,600.00 19,200.00
Sales/Marketing 23,880.00 286,560.00 800.00 1,600.00 9,600.00 19,200.00
Supervisor (1)
Engineering/Maintenance 25,690.00 308,280.00 800.00 1,600.00 9,600.00 19,200.00
Supervisor (1)
Operation Supervisor (1) 20,750.00 249,000.00 800.00 1,600.00 9,600.00 19,200.00
Quality Control 13,380.00 160,560.00 540.00 1,080.00 6,480.00 12,960.00
Inspector (1)
Accountant (1) 23,390.00 280,680.00 800.00 1,600.00 9,600.00 19,200.00
Auditor (1) 17,360.00 208,320.00 700.00 1,400.00 8,400.00 16,800.00
Human Resource Officer 18,000.00 216,000.00 720.00 1,440.00 8,640.00 17,280.00

(1)
Machineries Operator (2) 12,970.00 155,640.00 520.00 1,040.00 6,240.00 12,480.00
Advertising Officer (1) 20,000.00 240,000.00 800.00 1,600.00 9,600.00 19,200.00
Sales Associate (1) 13,670.00 164,040.00 540.00 1,080.00 6,480.00 12,960.00
Plant Mechanic (1) 17,500.00 210,000.00 700.00 1,400.00 8,400.00 16,800.00
Electrician (1) 13,000.00 156,000.00 520.00 1,040.00 6,240.00 12,480.00
Plant Utility (1) 11,640.00 139,680.00 460.00 920.00 5,520.00 11,040.00
Security (2) 32,740.00 196,440.00 660.00 1,320.00 7,920.00 15,840.00
Utility Driver (2) 19,000.00 114,000.00 380.00 760.00 4,560.00 9,120.00
Total 252,960.00
Employee Monthly Annual Monthly Annual
Salary Salary Contribution Contribution
1st 2nd 1st 2nd
General Manager (1) 48,100.00 577,200.00 800.00 1,600.00 9,600.00 19,200.00
Sales/Marketing 23,880.00 286,560.00 800.00 1,600.00 9,600.00 19,200.00
Supervisor (1)
Engineering/ 25,690.00 308,280.00 800.00 1,600.00 9,600.00 19,200.00
Maintenance Supervisor
(1)
Operation Supervisor (1) 20,750.00 249,000.00 800.00 1,600.00 9,600.00 19,200.00
Quality Control 13,380.00 160,560.00 540.00 1,080.00 6,480.00 12,960.00

Inspector (1)
Accountant (1) 23,390.00 280,680.00 800.00 1,600.00 9,600.00 19,200.00
Auditor (1) 17,360.00 208,320.00 700.00 1,400.00 8,400.00 16,800.00
Human Resource Officer 18,000.00 216,000.00 720.00 1,440.00 8,640.00 17,280.00
(1)
Machineries Operator (2) 12,970.00 155,640.00 520.00 1,040.00 6,240.00 12,480.00
Sales Associate (1) 13,670.00 164,040.00 540.00 1,080.00 6,480.00 12,960.00
Plant Mechanic (1) 17,500.00 210,000.00 700.00 1,400.00 8,400.00 16,800.00
Electrician (1) 13,000.00 156,000.00 520.00 1,040.00 6,240.00 12,480.00
Plant Utility (1) 11,640.00 139,680.00 460.00 920.00 5,520.00 11,040.00
Security (2) 32,740.00 196,440.00 660.00 1,320.00 7,920.00 15,840.00
Utility Driver (2) 19,000.00 114,000.00 380.00 760.00 4,560.00 9,120.00
Total 252,960.00
Schedule 21
PhilHealth CONTRIBUTION

Employee Monthly Annual Monthly Annual Contribution
Salary Salary Contribution
1st 2nd 1st 2nd
General Manager (1) 48,100.0 577,200.0 1,443.0 2,886.0 17,316.0 34,632.00
0 0 0 0 0
Sales/Marketing 23,880.0 286,560.0 716.40 1,432.8 8596.80 17,193.60
Supervisor (1) 0 0 0
Engineering/ 25,690.0 308,280.0 770.70 1,541.4 9,248.40 18,496.80
Maintenance Supervisor 0 0 0
(1)
Operation Supervisor 20,750.0 249,000.0 622.50 1,245.0 7,470.00 14,940.00
(1) 0 0 0
Quality Control 13,380.0 160,560.0 401.40 802.80 4,816.80 9,633.60
Inspector (1) 0 0
Accountant (1) 23,390.0 280,680.0 701.70 1,403.4 8,420.40 16,840.80
0 0 0
Auditor (1) 17,360.0 208,320.0 520.80 1,041.6 6,249.60 12,4992.2
0 0 0 0
Human Resource 18,000.0 216,000.0 540.00 1,080.0 6,480.00 12,960.00
Officer (1) 0 0 0
Machineries Operator 12,970.0 155,640.0 389.10 778.20 4,669.20 9,338.4
(2) 0 0

0 0 0
Sales Associate (1) 13,670.0 164,040.0 410.10 820.20 4,921.00 9,842.40
0 0
Plant Mechanic (1) 17,500.0 210,000.0 525.00 1,050.0 6,300.00 12,600.00
0 0 0
Electrician (1) 13,000.0 156,000.0 390.00 780.00 4,680.00 9,360.00
0 0
Plant Utility (1) 11,640.0 139,680.0 349.20 698.40 4,190.40 9,380.80
0 0
Security (2) 32,740.0 196,440.0 982.20 1,964.4 5,893.20 11,786.40
0 0 0
Utility Driver (2) 19,000.0 114,000.0 570.00 1,140.0 3,400.00 6,840.00
0 0 0
Total 333,237.0
1st 2nd 1st 2nd
General Manager (1) 48,100.0 577,200.0 1,443.0 2,886.0 17,316.0 34,632.00
0 0 0 0 0
Sales/Marketing 23,880.0 286,560.0 716.40 1,432.8 8596.80 17,193.60

Engineering/ 25,690.0 308,280.0 770.70 1,541.4 9,248.40 18,496.80
Maintenance Supervisor 0 0 0
(1)
Operation Supervisor 20,750.0 249,000.0 622.50 1,245.0 7,470.00 14,940.00
(1) 0 0 0
Quality Control 13,380.0 160,560.0 401.40 802.80 4,816.80 9,633.60
Inspector (1) 0 0
Accountant (1) 23,390.0 280,680.0 701.70 1,403.4 8,420.40 16,840.80
0 0 0
Auditor (1) 17,360.0 208,320.0 520.80 1,041.6 6,249.60 12,4992.2
0 0 0 0
Human Resource 18,000.0 216,000.0 540.00 1,080.0 6,480.00 12,960.00
Officer (1) 0 0 0
(2) 0 0
0 0 0
Sales Associate (1) 13,670.0 164,040.0 410.10 820.20 4,921.00 9,842.40
0 0
Plant Mechanic (1) 17,500.0 210,000.0 525.00 1,050.0 6,300.00 12,600.00
0 0 0
Electrician (1) 13,000.0 156,000.0 390.00 780.00 4,680.00 9,360.00

0 0
Plant Utility (1) 11,640.0 139,680.0 349.20 698.40 4,190.40 9,380.80
0 0
Security (2) 32,740.0 196,440.0 982.20 1,964.4 5,893.20 11,786.40
0 0 0
Utility Driver (2) 19,000.0 114,000.0 570.00 1,140.0 3,400.00 6,840.00
0 0 0
Total 333,237.0
Schedule 22
PAG-IBIG CONTRIBUTION
1st 2nd 1st 2nd
General Manager (1) 48,100.0 577,200.0 962.0 1,924.0 11,544.0 23,088.00
0 0 0 0 0
Sales/Marketing 23,880.0 286,560.0 477.6 955.20 5,731.20 11,462.40
Engineering/ 25,690.0 308,280.0 513.8 1,027.6 6,165.60 12,331.20
Maintenance Supervisor 0 0 0 0
(1)
Operation Supervisor (1) 20,750.0 249,000.0 415.0 830.00 4,980.00 9,960.00
0 0 0
Quality Control 13,380.0 160,560.0 267.6 535.20 3,211.20 6,422.4
Inspector (1) 0 0 0
Accountant (1) 23,390.0 280,680.0 467.8 935.60 5,613.60 11,227.20
0 0 0
Auditor (1) 17,360.0 208,320.0 347.2 694.40 4,166.40 8,332.8
0 0 0
Human Resource Officer 18,000.0 216,000.0 360.0 720.00 4,320.00 6,640.00
(1) 0 0 0
(2) 0 0 0
Advertising Officer (1) 20,000.0 240,000.0 400.0 800.00 4,800.00 9,600.00
0 0 0
Sales Associate (1) 13,670.0 164,040.0 273.4 546.80 3,280.80 6,561.60
0 0 0
Plant Mechanic (1) 17,500.0 210,000.0 350.0 700.000 4,200.00 8,400.00
0 0 0
Electrician (1) 13,000.0 156,000.0 260.0 520.00 3,120.00 6,240.00
0 0 0
Plant Utility (1) 11,640.0 139,680.0 232.8 465.60 2,793.60 5,587.20
0 0 0
Security (2) 32,740.0 196,440.0 654.8 1,309.6 3,928.80 7,857.60
0 0 0 0
Utility Driver (2) 19,000.0 114,000.0 380.0 760.00 2,280.00 4,560.00
0 0 0
Total 144,496.0
1st 2nd 1st 2nd
General Manager (1) 48,100.0 577,200.0 962.0 1,924.0 11,544.0 23,088.00
0 0 0 0 0
Sales/Marketing 23,880.0 286,560.0 477.6 955.20 5,731.20 11,462.40
Engineering/ 25,690.0 308,280.0 513.8 1,027.6 6,165.60 12,331.20
Maintenance Supervisor 0 0 0 0
(1)
Operation Supervisor (1) 20,750.0 249,000.0 415.0 830.00 4,980.00 9,960.00
0 0 0
Quality Control 13,380.0 160,560.0 267.6 535.20 3,211.20 6,422.4
Inspector (1) 0 0 0
Accountant (1) 23,390.0 280,680.0 467.8 935.60 5,613.60 11,227.20

0 0 0
Auditor (1) 17,360.0 208,320.0 347.2 694.40 4,166.40 8,332.8
0 0 0
Human Resource Officer 18,000.0 216,000.0 360.0 720.00 4,320.00 6,640.00
(1) 0 0 0
(2) 0 0 0
Advertising Officer (1) 20,000.0 240,000.0 400.0 800.00 4,800.00 9,600.00
0 0 0
Sales Associate (1) 13,670.0 164,040.0 273.4 546.80 3,280.80 6,561.60
0 0 0
Plant Mechanic (1) 17,500.0 210,000.0 350.0 700.000 4,200.00 8,400.00
0 0 0
Electrician (1) 13,000.0 156,000.0 260.0 520.00 3,120.00 6,240.00
0 0 0
Plant Utility (1) 11,640.0 139,680.0 232.8 465.60 2,793.60 5,587.20
0 0 0
Security (2) 32,740.0 392,880.0 654.8 1,309.6 3,928.80 7,857.60
0 0 0 0
Utility Driver (2) 19,000.0 228,000.0 380.0 760.00 2,280.00 4,560.00
0 0 0
Total 144,496.0
0
NOTES
The following tables presented below are the notes to financial statements. Notes
provides additional information pertaining to the business’s operations and financial position and
are considered to be an integral part of the financial statements.
Note 1
Project Cost
Capital Investment NOTE Initial Investment (₱)
Feasibility Study Cost 2 74,800.00
Office Furniture and Fixture 10 8,786.00
Production Property & Equipment 9 307,560.00
Machinery 11 4,799,568.03
Leasehold Improvement 4 238,500.00
Promotional Expense 13 22,102.00
Permits and Licenses 3 2,215.00
Utilities Expense 14 291,595.50
Working Capital 18 4,303,910.00
TOTAL COST
Note 2
Feasibility Study Cost
Description Amount (₱)
Professional Fee 65,000.00
Adviser and Panelists Honoraria 5,000.00
Printing 1,000.00
Bookbinding for Defense 300.00
Food and Drinks 1,000.00
Snacks for Panelists 500.00
Transportation 500.00
Hardbound Bookbinding 800.00
Plagiarism and Grammar Test 200.00
Miscellaneous 500.00
TOTAL COST 74,800.00
Note 3
PERMITS AND LICENSES
Barangay Clearance 125.00
BIR Registration 650.00
Fire and Safety Clearance 200.00

Mayor's Permit 250.00
Sanitary Permit 70.00
Environmental Clearance 150.00
Business Tax Permit-CTC 700.00
Documentary Stamp for Leasing 70.00
Total ₱2,215.00
Note 4
Leasehold Improvement/BOM
Carpentry Works 42,000.00
Concrete Works 6,000.00
Plumbing Works 5,500.00
Electrical Works 20,000.00
Tile Works 15,000.00
Painting Works 10,000.00
Installation of Glass Doors 60,000.00
Total Material Cost 158,500.00
Total Labor Cost 80,000.00
TOTAL COST 238,500.00

Note 5
Medical Supplies
Description Quantity Cost
First-Aid Kit 1 set Php 1,890.00
Total Php 1,890.00
Note 6
Janitorial and Cleaning Supplies
Description Unit Cost Quantity Amount (₱)
Hand Soap 88 12 1,056.00
Air Freshener 150 12 1,800.00
Broom 150 1 150.00
Amazing Spin Mop 305 1 305.00
Trash Can 240 2 480.00
Adjustable Long Handle Window 400 1 400.00
Glass Wiper
Detergent Soap 89 12 1,068.00
Rags 1 36 36.00
Large Rags 30 1 30.00
Feather Duster 35 1 35.00
Apron Hook 200 1 200.00

TOTAL ANNUAL COST 5,560.00
Note 7
Uniform Expense
Polo Shirt Php 500.00 45 22,500
Identification Card Php 50.00 17 850
TOTAL ANNUAL COST 23,350
Note 8
Office Supplies
Pen Holder 30 3 90.00
Stapler 35 3 105.00
Stapler Wire 50 3 150.00
Calculator 500 2 1,000.00
Faber 8 12 96.00
Ruler 10 12 120.00
Scissors 25 3 75.00
Valiant 110 2 220.00
Folder 8 24 192.00
Pilot 67 12 804.00
Paper One 270 3 810.00
Clips 1 24 24.00
HP Black 450 2 900.00
Vouchers 320 12 3,840.00
Sign Board Open/Closed 100 2 200.00
Push/Pull Door Sticker Sign 80 2 160.00
Note 9
Property and Equipment
Description Unit Cost Quantity Amount
Air Conditioning 35,000 4 140,000
Unit
Genius Wireless 390 4 1,560
Mouse
CCTV 2,500 3 7,500
Brother DCP-T310 6,500 2 13,000
3-In-One Refill
Tank
PC Unit 30,000 4 120,000
Fire Extinguisher 1,500 3 4,500

Storage Cabinet 9,000 2 18,000
Biometric Time 1,500 2 3,000
Recorder
Total 307,560.00
Note 10
Furnitures and Fixtures
Description Unit Cost Quantity Amount
Wall Clock 300 2 600
Signages 120 6 720
Trash Can 200 6 1,200
Total 2,520.00
NOTE 11
Machinery
DESCRIPTION UNIT COST
Pulper 1 Php 378,510.00
Ragger 1 Php 250,000.00
Low-Consistency Pulper 1 Php 428,978.00
Pulp Mill Trommel Screen 1 Php 252,340.00

Low Consistency Screen 1 Php 219,535.80
De-Inker Machine 1 Php 400,000.00
Disperser Machine 1 Php 90,842.40
Refiner Machine 1 Php 656,084.00
Pressure Headbox 1 Php 150.000.00
Forming Machine 1 Php 217,012.40
Drying Machine 1 Php 325,000.00
Pressing Machine 1 Php 60,000.00
Reeling Machine 1 Php 325,000.00
Winding Machine 1 Php 425,000.00
Synchronous Fly Sheeter 1 Php 340,000.00
Machine
Paper Cutter Machine 1 Php 281,266.23
Total Php 4,799,568.03
Note 12
Direct Materials
Description Quantity Amount (₱)
Recycled paper
Residential papers 1 Ton 12,124.80
Sorted office papers 1 Ton 122,460.50

Chemicals
Acetone 100 kg 42,436.80
Alcohol 10 metric tons 65,625.50
Detergent 10 metric tons 29,806.80
Enzymes 5 tons 48,499.20
Surfactants 5 tons 566.27
Packaging
Boxes 100 Boxes 72,000.00
Cover 20 Rolls 5,000.00
Total 398,519.87
Note 13
Promotional Expense
Flyers 600.00
Tarpaulins 300.00
Entrance Arc Balloons 1,500.00
Flower Wreath 4,400.00
Priest Stipend 1,000.00
Foods and Drinks 3,000.00
Posters 1,150.00
Ribbon 152.00
Opening Free Service 10,000.00

Note 14
Utility Expense
Description Monthly Cost (₱) Annual Cost (₱)
Electricity 45,468.00 545,616
Water 1432.25 17,187
Internet 1699.00 20,388
Telephone 848.25 10,143
Total 48,599.25 583,191
Note 15
Overtime Pay
Employee Quantity OT Pay No. of OT Annual
(₱) Days/Year Overtime
Pay (₱)
General Manager 1 462.50 89 41,162.50
Sales/Marketing Supervisor 1 229.62 134 30,769.08
Engineering/Maintenance Supervisor 1 247.02 134 33,100.68
Operation Supervisor 1 199.52 134 26,735.68

Quality Control Inspector 1 128.66 134 17,240.44
Accountant 1 224.91 134 30,137.94
Auditor 1 166.92 134 22,367.28
Human Resource Officer 1 173.08 134 23,192.72
Machineries Operator 2 124.71 134 16,711.14
Advertising Officer 1 192.31 134 25,769.54
Sales Associate 1 131.44 134 17,612.96
Plant Mechanic 1 168.27 134 22,544.16
Electrician 1 125.00 134 16,750.00
Plant Utility 1 111.92 134 14,997.28
Security 2 314.81 134 42,184.54
Utility Driver 2 182.69 134 24,480.46
Total 405,756.50
Note 16
Salaries and Wages
Employee Quantity Daily Salary No. of Monthly Annual
Working Rate (₱) Rate (₱)
Days
General Manager 1 1,850.00 312 48,100.00 577,200.00
Sales/Marketing Supervisor 1 918.46 312 23,880.00 286,560.00
Engineering/Maintenance 1 988.08 312 25,690.00 308,280.00

Supervisor
Operation Supervisor 1 798.08 312 20,750.00 249,000.00
Quality Control Inspector 1 514.62 312 13,380.00 160,560.00
Accountant 1 899.62 312 23,390.00 280,680.00
Auditor 1 667.69 312 17,360.00 208,320.00
Human Resource Officer 1 692.31 312 18,000.00 216,000.00
Machineries Operator 2 498.85 312 12,970.00 155,640.00
Advertising Officer 1 769.23 312 20,000.00 240,000.00
Sales Associate 1 525.77 312 13,670.00 164,040.00
Plant Mechanic 1 673.08 312 17,500.00 210,000.00
Electrician 1 500.00 312 13,000.00 156,000.00
Plant Utility 1 447.69 312 11,640.00 139,680.00
Security 2 1259.23 312 32,740.00 196,440.00
Utility Driver 2 730.77 312 19,000.00 114,000.00
Total 331,070.00 3,972,840.00
Note 17
Thirteenth Month Pay
Employee Quantity Annual Salary 13th Month Pay
(₱) (₱)
General Manager 1 577,200.00 48,100.00
Sales/Marketing Supervisor 1 286,560.00 23,880.00

Engineering/Maintenance 1 308,280.00 25,690.00
Supervisor
Operation Supervisor 1 249,000.00 20,750.00
Quality Control Inspector 1 160,560.00 13,380.00
Accountant 1 280,680.00 23,390.00
Auditor 1 208,320.00 17,360.00
Human Resource Officer 1 216,000.00 18,000.00
Machineries Operator 2 155,640.00 12,970.00
Advertising Officer 1 240,000.00 20,000.00
Sales Associate 1 164,040.00 13,670.00
Plant Mechanic 1 210,000.00 17,500.00
Electrician 1 156,000.00 13,000.00
Plant Utility 1 139,680.00 11,640.00
Security 2 196,440.00 32,740.00
Utility Driver 2 114,000.00 19,000.00
Total 3,972,840.00 331,070.00
Note 18
REPAIRS AND MAINTENANCE
DESCRIPTION COST
Repairs and Maintenance Php 200,000.00
TOTAL Php 200,000.00
Note 19
SELLING EXPENSES
Description Quantity Amount (₱)
Gasoline 58.923 liters 70,707.69231
Reserve tires 3 pcs 4,000.00
Total 74,707.69231

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FINANCIAL ASPECT

SCOPE OF THE FINANCIAL ASPECT

 Total Project Cost

 Projected Income Statement

 Vertical Common Size Income Statement

 Horizontal Common Size Income Statement

 Statement of Owner’s Equity

 Projected Cash Flow Statement

 Projected Statement of Financial Performance

 Vertical Common Size Financial Performance

 Horizontal Common Size Financial Performance

business to raise the appropriate funds needed to implement it.

 The form of business adopted by the company is partnership.

 The total project cost is Php 20,000,000.00.

 A total amount of Php 3,333,333.333 was invested per owner.

Larida, Cathleen Marcy B. Pido, Rommel N. Baculio and Kim Sandigan,

 Business has an operating cycle of 12 months calendar year.

 Depreciation is based on the straight-line method.

 SSS, PhilHealth and Pag-ibig contribution will be based on the monthly

salaries of the employees.

 There is only 312 working days in a year.

specific period of time.

Projected income statement of RESUS COMPANY

2021 2022 COMPANY

*REVENUE during its

Pre-operating expenses 4,423,210.50 ------ first 2years

SSS contribution 252,960.00 252,960.00

PhilHealth contribution 333,237.00 333,237.00

PAG-IBIG contribution 144,496.00 144,496.00

Selling expenses 106,526.08 106,526.08

Supplies 39,340.00 39,340.00

Permits and License 2,215.00 1,315.00

TOTAL EXPENSES 11,690,593.08 7,267,382.58

Net Income before tax 319,326.82 2,168,217.70

Less: Tax expenses (Train ------- 108,450.10

Net Income after tax 319,326.82 2,059767.60

VERTICAL COMMON-SIZE INCOME STATEMENT

Vertical common-size income statement is an income statement in which each account is

income statement affect a company's profit.

Vertical common-size income statement of RESUS COMPANY.

For the years December 31, 2021, 2022

2021 (%) 2022 (%)

*REVENUE 100 100

OPERATING EXPENSES ------- -------

Direct materials 6.54 6.57

Recycled paper Expenses 3.31 3.32

Uniform Expenses 0.25 0.26

Holiday Pay 2.89 2.90

13th Month Pay 2.60 2.62

Depreciation 4.49 4.36

Utilities 5.15 5.13

Repairs & maintenance 0.12 0.23

SSS contribution 1.94 1.97

PhilHealth contribution 0.36 0.36

PAG-IBIG contribution 0.26 0.25

Supplies 0.98 0.95

Salaries 10.86 10.91