SALES BUDGET:

Budgeted unit sales

•Meal Set A (Seafood) 50 meals per week x 50 weeks
•Meal Set B (Pork) 75 Meals per week x 50 weeks
•Meal Set C (Beef) 75 Meals per week x 50 weeks
•Meal Set D (Chicken) 100 meals per week x 50 weeks
Projected unit increase per year is 35%
Total Units
Multiplied by SP/U
Selling price per unit
•Meal Set A (Seafood) Php 500
•Meal Set B (Pork) Php 400
•Meal Set C (Beef) 7 x Php 400
•Meal Set D (Chicken) x Php 350

Total Sales

SCHEDULE OF EXPECTED CASH COLLECTIONS:

Cash sales
Credit sales (No Credit Sales policy of the restaurant)
Total Cash Collections

DIRECT MATERIALS BUDGET:

Units to be produced
Multiply by: Quantity of DM needed per unit
Meal A (seafood)
Meal B (pork)
Meal C (beef)
Meal D (chicken)
Quantity of DM needed for production
Plus: Desired ending inventory of DM
Meal A (seafood)
Meal B (pork)
Meal C (beef)
Meal D (chicken)
Total quantity of DM needed
Less beginning inventory of DM
Quantity of DM to purchase
Multiply by: Cost per pound
Meal A (seafood) ]
Meal B (pork)
Meal C (beef)
 Meal D (chicken)
Multipied by quantity
Total cost of DM purchases

2022

Ingredients Needed per unit Units to be produced

Beef 200g 3750

Pork 200g 3750
Chicken 300g 5000
Squid 100g 2500
Clams 100g 2500
Shrimps 100g 2500
Noodles 50g 15,000
Mixed Vegetables 50g 15,000
Cake
Flour 250g 15,000
Sugar 50g 15,000
Chocolates 100g 15,000
Honey 10g 15,000
Butter 50g 15,000
Miscellaneous 30g 15,000
Herbs and other 5g 15,000
Garnishes
Wine and Other
400 mL 15,000
Spirites
Total

Price is assumed to
increase 15% per year
CASH PAYMENTS FOR DIRECT LABOR:

No. Position Job Description Monthly Pay

1 Receptionist / Cashier 8,000
1 Chef 20,000
1 Assistant cook 15,000 Each
3 Dining Crew 8000
Dining Crew 8000
Dining Crew 8000
1 Maintenance Crew 8,000
1 Dishwasher 8,000
Total Direct Labor
DL is assumed to be the same in 2023 and 2024 unless demand increases. Since, the restaurant doesn

CASH PAYMENTS FOR MANUFACTURING OVERHEAD

Variable manufacturing overhead costs

Electricity Note: VMoH increases 15% per year
Water
Gas
Rent (fixed)
Other MOH (Maintenance FIXED)
Total cash payments

CASH PAYMENTS FOR OPERATING EXPENSES

Variable operating expenses

Marketing and Promotion
Fixed operating expenses
Business Licenses
Total cash payments
Note: Marketing and Promotion increases 15% per year

CASH BUDGET
FOR THE THREE YEARS

Cash balance, beginning

Add collections from customers
Total cash available

Less cash payments

DM purchases
Direct labor
 MOH costs
Operating Expenses
Equipment purchases
Total Disbursements
Ending cash balance before financing
Financing:
Borrowings
Repayments with Interest (61,984 per month)
Interest is 6.75% per annum
Total financing

Cash balance, ending

BUDGETED INCOME STATEMENT

FOR THE THREE YEARS

Sales
Less COGS:
Beginning Balance
Purchases
Ending Balance

Gross profit
Less expenses:
Operating Expenses
Depreciation

Operating Income
Interest Expense
Net income
PRO FORMA BALANCE SHEET
FOR THE THREE YEARS

ASSETS 2022
Current Assets
Cash 5,620,808
Net accounts receivable -
Inventory -
Temporary investment -
Prepaid expenses -
Total Current Assets $5,620,808

Fixed Assets
Long-term investments -
Land -
Buildings (net of depreciation) -
Plant & equipment (net) $1,085,000
Furniture & fixtures (net) -
Total Net Fixed Assets $1,085,000
TOTAL ASSETS $6,705,808

LIABILITIES
Current Liabilities
Loan 2,000,000
Short-term notes -
Current portion of long-term notes -
Accruals & other payables -
Total Current Liabilities $2,000,000

Long-term Liabilities
Mortgage -
Other long-term liabilities -
Total Long-term Liabilities

SHAREHOLDERS' EQUITY
Capital A, $4,705,808
Withdrawal, A
Total Shareholders' Equity $4,705,808
TOTAL LIABILITIES & EQUITY $6,705,808
 2022 2023 2024

2,500 3,375 4,556

3,750 5,063 6,834
3,750 5,063 6,834
5,000 6,750 9,113

15,000 20,250 27,338

1,250,000 1,856,250 2,278,125

1,500,000 2,025,000 2,733,750
1,500,000 2,025,000 2,733,750
1,750,000 2,362,500 3,189,375

6,000,000 8,268,750 10,935,000

2022 2023 2024

6,000,000 8,268,750 10,935,000
- - -
6,000,000 8,268,750 10,935,000

2022 2023 2024

15,000 20,250 27,338

2500 3,375 4,556

3750 5,063 6,834
3750 5,063 6,834
5000 6,750 9,113
15,000 20,250 27,338

250 250 250

250 250 250
250 250 250
250 250 250
16,000 20,250 27,338
- 1,000 1,000
16,000 19,250 26,338

₱ 300.00 ₱ 345.00 ₱ 396.75

 ₱ 300.00 ₱ 345.00 ₱ 396.75

16000.00 19250 26338

$ 4,800,000 $ 6,641,250 $ 10,449,602

2022 2023
Needed per Units to be
Price per unit Price per unit Cost
unit produced
₱70.00 grams ₱262,500.00 200g 5063
₱60.00 grams ₱225,000.00 200g 5063
₱55.00 grams ₱275,000.00 300g 6750
₱20.00 grams ₱50,000.00 100g 3375
₱25.00 ₱62,500.00 100g 3375
₱20.00 ₱50,000.00 100g 3375
₱5.00 grams ₱75,000.00 50g 20,250
₱10.00 grams ₱150,000.00 50g 20,250
20,250
₱18.00 grams ₱270,000.00 250g 20,250
₱15.00 grams ₱225,000.00 50g 20,250
₱30.00 grams ₱450,000.00 100g 20,250
₱10.00 mL ₱150,000.00 10g 20,250
₱35.00 g ₱525,000.00 50g 20,250
₱30.00 ₱450,000.00 30g 20,250
₱5.00 ₱75,000.00 5g
20,250
₱80.00 mL ₱1,200,000.00 400 mL
20,250
₱4,495,000.00
 Monthly Allowance 13th month pay and othTotal Annual Pay
- 8000 104,000
3,000 20,000 296,000
- 15,000 195,000
- 8000 104000
8000 104,000
8000
- 8,000 104,000
- 8,000 104,000
1,011,000
ses. Since, the restaurant doesn’t qualify for the application of Minimum Wage Law

2022 2023 2024

₱240,000.00 ₱276,000.00 ₱345,000.00

₱12,000.00 ₱13,800.00 ₱17,250.00
₱100,000.00 ₱115,000.00 ₱143,750.00
₱240,000.00 240,000 ₱240,000.00
₱120,000.00 120,000 ₱120,000.00
712,000 764,800 866,000

2022 2023 2024

- -
100000 115000 132250
-
15000 15000 15000
115,000 130,000 147,250

2022 2023 2024

6,000,000 5,620,808 4,818,856
6,000,000 8,268,750 10,935,000
12,000,000 13,889,558 15,753,856

4,200,000 6,411,094 9,973,558

1,011,000 1,011,000 1,011,000
 712,000 764,800 866,000
115,000 140,000 171,250
1,085,000 - -
₱7,123,000.00 ₱8,326,893.75 ₱12,021,808.00
4,877,000 5,562,664 3,732,048

2,231,424 1,487,616 743,808

(743,808) (743,808) (743,808)

1,487,616 743,808

5,620,808 4,818,856 2,988,240

2022 2023 2024

₱ 6,000,000.00 ₱ 8,268,750.00 ₱ 10,935,000.00

₱ - ₱ 300,000.00 ₱ 300,000.00
₱ 4,800,000.00 ₱ 6,641,250.00 ₱ 10,449,601.50
-₱ 300,000.00 ₱ 300,000.00 ₱ 300,000.00
₱ 4,500,000.00 ₱ 6,641,250.00 ₱ 10,449,601.50
₱ 1,500,000.00 ₱ 1,627,500.00 ₱ 485,398.50

₱ 115,000.00 ₱ 130,000.00 ₱ 147,250.00

₱ 85,000.00 ₱ 85,000.00 ₱ 85,000.00

₱ 1,300,000.00 ₱ 1,412,500.00 ₱ 253,148.50

₱ 77,141.33 ₱ 77,141.33 ₱ 77,141.33
₱ 1,222,858.67 ₱ 1,335,358.67 ₱ 176,007.17

2023 2024

4,818,856 2,988,240

$300,000 $300,000

$5,118,856 $3,288,240
$1,000,000 $925,000

$1,000,000 $925,000
$6,118,856 $4,213,240

$1,333,333 $666,667

$1,333,333 $666,667

$4,785,523 $3,546,574

$4,785,523 $3,546,574
$6,118,856 $4,213,240
 2023 2024
Needed per Units to be
Price per unit Price per unit Cost Price per unit
unit produced
₱80.50 grams ₱407,571.50 200g 6834 ₱92.58
₱69.00 grams ₱349,347.00 200g 6834 ₱79.35
₱63.25 grams ₱426,937.50 300g 9113 ₱72.74
₱23.00 grams ₱77,625.00 100g 4556 ₱26.45
₱23.00 grams ₱77,625.00 100g 4556 ₱26.45
₱23.00 grams ₱77,625.00 100g 4556 ₱26.45
₱5.75 grams ₱116,437.50 50g 27338 ₱6.61
₱11.50 grams ₱232,875.00 50g 27338 ₱13.23
27338
₱20.70 grams ₱419,175.00 250g 27338 ₱23.81
₱17.25 grams ₱349,312.50 50g 27338 ₱19.84
₱34.50 grams ₱698,625.00 100g 27338 ₱39.68
₱11.50 mL ₱232,875.00 10g 27338 ₱13.23
₱40.25 g ₱815,062.50 50g 27338 ₱46.29
₱34.50 ₱698,625.00 30g 27338 ₱39.68

₱5.75 ₱116,437.50 5g 27338 ₱6.61

₱92.00 mL ₱1,863,000.00 400 mL 27338 ₱105.80

₱6,959,156.00
2024

Price per unit Cost

grams ₱632,657.55
grams ₱542,277.90
grams ₱662,856.84
grams ₱120,506.20
grams ₱120,506.20
grams ₱120,506.20
grams ₱180,772.53
grams ₱361,545.05
₱0.00
grams ₱650,781.09
grams ₱542,317.58
grams ₱1,084,635.15
mL ₱361,545.05
g ₱1,265,407.68
₱1,084,635.15

₱180,772.53

mL ₱2,892,360.40

₱10,804,083.08
Cost Item Variable Costs Fixed Cost
Rent x
Ingredients used for the Meals x
Labor cost to prepare the meal x
Cost of Electricity to produce the meals x
Depreciation of the Equipment x
Marketing and Promotions x

Annual Fixed Cost 2022 2023

Total Cost Production ₱ 6,723,000.00 ₱ 8,710,050.00
Less: Variable Cost ₱ 5,663,000.00 ₱ 8,335,050.00
Multiplied by the number of units produced ₱ 375,000.00 ₱ 375,000.00

Annual Variable Cost:

Variable cost per unit ₱ 300.00 ₱ 327.96
Divided by: Produced Units 15000 20250
₱ 4,500,000.00 ₱ 6,641,250.00

Breakeven point
Fixed Costs ₱ 460,000.00 ₱ 538,000.00
Divided by CM (Note 1) 25% 20%
Breakeven point ₱ 1,840,000.00 ₱ 2,690,000.00

Margin of Safety
Current Sales 6000000 8268750
Minus Breakeven Point ₱ 1,840,000.00 ₱ 2,690,000.00
Divided by Current Sales 6000000 8268750
All in Percentage 69.33 67.47

Degree of Operating Leverage

Sales 6000000 8268750

Minus
Variable Costs ₱ 4,500,000.00 ₱ 6,641,250.00
Divided By
Sales - Variable Costs - Fixed Costs
DOL 1.4 1.5
 Product Cost
Direct Materials Direct Labor Factory Overhead Period Cost
x x
x
x
x x

x x

2024
₱ 12,746,351.50
₱ 12,371,351.50
₱ 375,000.00

₱ 382.24
27337.5
₱ 10,449,601.50

Note 1
₱ 647,500.00 Revenue 6000000
4% Variable Costs ₱ 4,500,000.00
₱ 16,187,500.00 Over the years, the breakeven point gets higherCM Ratio ₱ 0.25
25%

10935000
₱ 16,187,500.00
10935000
-48.03 In 2022 and 2023 there was a lower risk of not breaking even and incurring a loss, however in 2024, there is

10935000

₱ 10,449,601.50

-3.0 In 2022 and 2023 there is just a slight increase of sales in which significantly increases earnings, however, in
 8268750 10935000
₱ 6,641,250.00 ₱ 10,449,601.50
₱ 0.20 ₱ 0.04
20% 4%

ncurring a loss, however in 2024, there is a high risk of not breaking even and incurring a loss.

nificantly increases earnings, however, in 2024 the degree of operating leverage is in the negative alerting the restaurant that there is a sig
staurant that there is a significant loss of earnings.
 BUDGETED INCOME STATEMENT
FOR THE THREE YEARS

Sales
Less COGS:
Beginning Balance
Purchases
Ending Balance

Gross profit
Less expenses:
Operating Expenses
Depreciation

Operating Income
Interest Expense
Net income

In 2023, sales increased with its increase the cost to reproduce the product also increased, resulting into a lesser gross profit.

In 2024, there was an sales increase, however the cost to produce such products increased as well this may be attibuted to th
 2022 % 2023 % 2024
₱ 6,000,000.00 100% ₱ 8,268,750.00 100 ₱ 10,935,000.00 100.00

₱ - ₱ 300,000.00 ₱ 300,000.00
₱ 4,800,000.00 ₱ 6,641,250.00 ₱ 10,449,601.50
₱ 300,000.00 ₱ 300,000.00
₱ 4,500,000.00 75% ₱ 6,641,250.00 80.32 ₱ 10,449,601.50 95.56
₱ 1,500,000.00 25% ₱ 1,627,500.00 19.68 ₱ 485,398.50 4.44

₱ 115,000.00 1.90% ₱ 130,000.00 1.57 ₱ 147,250.00 1.35

₱ 85,000.00 1.40% ₱ 85,000.00 1.03 ₱ 85,000.00 0.78

₱ 1,300,000.00 21.67% ₱ 1,412,500.00 17.08 ₱ 253,148.50 2.32

₱ 77,141.33 1.25% ₱ 77,141.33 1.16 ₱ 77,141.33 0.71
₱ 1,222,858.67 20.38% ₱ 1,335,358.67 16.15 ₱ 176,007.17 1.61

sulting into a lesser gross profit. The operational expenses also increased but not significantly.

s well this may be attibuted to the unstable economy we have during this trying times. Hence, with such increase it may indicate a potenti
 ASSETS
Current Assets
Cash
Net accounts receivable
Inventory
Temporary investment
Prepaid expenses
Total Current Assets

Fixed Assets
Long-term investments
Land
Buildings (net of depreciation)
Plant & equipment (net)
Furniture & fixtures (net)
Total Net Fixed Assets
ase it may indicate a potential loss for the business. TOTAL ASSETS

LIABILITIES
Current Liabilities
Loan
Short-term notes
Current portion of long-term notes
Accruals & other payables
Total Current Liabilities

Long-term Liabilities
Mortgage
Other long-term liabilities
Total Long-term Liabilities

SHAREHOLDERS' EQUITY
Capital A,
Withdrawal, A
Total Shareholders' Equity
TOTAL LIABILITIES & EQUITY
 PRO FORMA BALANCE SHEET
FOR THE THREE YEARS

2022 % 2023 2024

5,620,808 83.82 4,818,856 78.75 2,988,240 70.92

-
- $300,000 4.90 $300,000 7.12
-
-
$5,620,808 $5,118,856 $3,288,240

-
-
-
$1,085,000 16.18 $1,000,000 16.34 $925,000 21.95
-
$1,085,000 $1,000,000 $925,000
$6,705,808 100 $6,118,856 100 $4,213,240 100

2,000,000 29.82 $1,333,333 21.79 $666,667 15.823

-
-
-
$2,000,000 $1,333,333 $666,667

-
-

$4,705,808 70.18 $4,707,523 76.93 $3,546,574 84.177

$4,705,808 $4,707,523 $3,546,574

$6,705,808 100 $6,118,856 100 $4,213,240 100
In 2023, the restaurants assets decreased from the year prior, however, such decease is not harmful as long as the liabilities o

In 2024, the restaurants current assets mainly cash decreased significantly, this is due to the decreased profit. However, the l
ul as long as the liabilities of the company is at bay. The only thing that is significant here is that the decrease of cash which if continues ma

ased profit. However, the loan payable has been fully repaid by retaurant resulting to the decrease of liabilites of the restaurant. However
e of cash which if continues may lead into insolvency. Also, the equity of the owner increased this year.

es of the restaurant. However, the equity of the owner decreased due to the decreased profits.
 BUDGETED INCOME STATEMENT
FOR THE THREE YEARS
2022 % 2023 % 2024
Sales ₱ 6,000,000.00 ₱ 8,268,750.00 27.44 ₱ 10,935,000.00
Less COGS:
Beginning Balance ₱ - ₱ 300,000.00 100.00 ₱ 300,000.00
Purchases ₱ 4,800,000.00 ₱ 6,641,250.00 27.72 ₱ 10,449,601.50
Ending Balance ₱ 300,000.00 ₱ 300,000.00
₱ 4,500,000.00 ₱ 6,641,250.00 32.24 ₱ 10,449,601.50
Gross profit ₱ 1,500,000.00 ₱ 1,627,500.00 7.83 ₱ 485,398.50
Less expenses:
Operating Expenses ₱ 115,000.00 ₱ 130,000.00 11.54 ₱ 147,250.00
Depreciation ₱ 85,000.00 ₱ 85,000.00 ₱ 85,000.00

Operating Income ₱ 1,300,000.00 ₱ 1,412,500.00 7.96 ₱ 253,148.50

Interest Expense ₱ 77,141.33 ₱ 77,141.33 ₱ 77,141.33
Net income ₱ 1,222,858.67 ₱ 1,335,358.67 8.42 ₱ 176,007.17

In 2024 there is a increase of sales, in relation to it, the costs of producing the product also increased significantly than the sale
 24.4
ASSETS
0.0 Current Assets
36.4 Cash
Net accounts receivable
36.4 Inventory
-235.3 Temporary investment
Prepaid expenses
11.7 Total Current Assets

Fixed Assets
-458.0 Long-term investments
Land
-658.7 Buildings (net of depreciation)
Plant & equipment (net)
ased significantly than the sales resulting to decreased gross profit for Furniture & fixtures (net)
Total Net Fixed Assets
TOTAL ASSETS

LIABILITIES
Current Liabilities
Loan
Short-term notes
Current portion of long-term notes
Accruals & other payables
Total Current Liabilities

Long-term Liabilities
Mortgage
Other long-term liabilities
Total Long-term Liabilities

SHAREHOLDERS' EQUITY
Capital A,
Withdrawal, A
Total Shareholders' Equity
TOTAL LIABILITIES & EQUITY
 PRO FORMA BALANCE SHEET
FOR THE THREE YEARS

2022 % 2023 2024

5,620,808 4,740,856 -18.56 2,722,740 - 74.12

-
- $300,000 $300,000 -
-
- There is a significant change in the liq
$5,620,808 $5,040,856 -11.51 $3,022,740 - 66.76

-
-
-
$1,085,000 $1,000,000 -8.50 $925,000 - 8.11
-
$1,085,000 $1,000,000 -8.50 $925,000 - 8.11
$6,705,808 $6,040,856 -11.01 $3,947,740 - 53.02

2,000,000 $1,333,333 -50.00 $666,667 - 100.00

-
-
-
$2,000,000 $1,333,333 -50.00 $666,667 - 100.00

-
-

$4,705,808 $4,707,523 $3,281,073 - 43.48

$4,705,808 $4,707,523 $3,281,073 - 43.48

$6,705,808 $6,118,856 $4,213,240 - 45.23
significant change in the liquidity of the restaurant for the total assets are decreasing. However, the debts of the restaurant was complete
f the restaurant was completely paid. But the decreasing equity could indicate losses.
 2022 2023 2024
Current Ratio
Current Assets ₱ 5,620,808.00 ₱ 5,040,856.25 ₱ 3,022,740.25
Divided by
Current Liabilities ₱ 2,000,000.00 ₱ 1,333,333.33 ₱ 666,666.67
2.81 3.78 4.53

Quick Ratio
Current Assets ₱ 5,620,808.00 ₱ 5,040,856.25 ₱ 3,022,740.25
Minus Inventories - ₱ 300,000.00 ₱ 300,000.00
Divided by Current Liabilities ₱ 2,000,000.00 ₱ 1,333,333.33 ₱ 666,666.67
2.81 3.56 4.08

Inventory Turnover
COGS ₱ 4,500,000.00 ₱ 6,641,250.00 ₱ 10,449,601.50
Divided by Average Value of Inventory ₱ 300,000.00 ₱ 300,000.00 ₱ 300,000.00
15.0 22.1 34.8

Day Sales of Inventory

Average Inventory ₱ 300,000.00 ₱ 300,000.00 ₱ 300,000.00
Divided by COGS x 365 ₱ 4,500,000.00 ₱ 6,641,250.00 ₱ 10,449,601.50
24.33 16.49 10.48

Debt to Equity
Total Debt ₱ 2,000,000.00 ₱ 1,333,333.33 ₱ 666,666.67
Divided by Total Equity ₱ 4,705,808.00 ₱ 4,707,523.00 ₱ 3,281,073.00
42.50 28.32 20.32

Debt to Assets
Total Debt ₱ 2,000,000.00 ₱ 1,333,333.33 ₱ 666,666.67
Divided by Total Assets ₱ 6,705,808.00 ₱ 6,040,856.25 ₱ 3,947,740.25
29.82 22.07 16.89

Return on Assets
Net Income ₱ 1,222,858.67 ₱ 1,335,358.67 ₱ 176,007.17
Divided by Avg. Total Assets ₱ 6,705,808.00 ₱ 9,393,760.25 ₱ 6,968,168.38
18.24 14.22 2.53

Return on Equity
Net Income ₱ 1,222,858.67 ₱ 1,335,358.67 ₱ 176,007.17
Divided by average equity ₱ 4,705,808.00 ₱ 7,060,427.00 ₱ 5,634,834.50
25.99 18.91 3.12
% Based on the current ratios the company can maximaze the current assets to satisfy the current liabilities.

% Based on the QR, the restaurant can pay its short-term liabilites on time due to its liquidity

% Since there is a high inventory turnover in every year, it just means that the management can easily anticipate dem

% In every year, the restaurant properly manages its inventory and has ease on selling its products.

% This shows that the company only relied on outside financing once, when the ratio is at 42.50, however, such financ

% This shows that the company can totally repay its debts, for it has more assets than debts.

% In the first and second year of business the ROA is high which indicates that the business is operating at its peak an

% In the first and second year of business, the restaurant has the ability to generate large amounts of profits for its ow
 he current liabilities.

ment can easily anticipate demands and could sell its products efficiently

ts products.

at 42.50, however, such financing did not occur again for the percentage per year is dropping.

ness is operating at its peak and is earning money. However, in 2024 the ROA dropped to 2.53 which indicate that the restaurant is not ope

ge amounts of profits for its owner. However, in the 2024 the ROE significantly decreased in which indicates that the owner suffered losses
e that the restaurant is not operating at its peak.

that the owner suffered losses.

2022 Operating Budget Base Sales 60% Sales 100% Sales 140% Sales
Total Revenue ₱ 6,000,000.00 ₱ 3,600,000.00 ₱ 6,000,000.00 ₱ 8,400,000.00
Total COGS ₱ 4,500,000.00 ₱ 2,700,000.00 ₱ 4,500,000.00 ₱ 6,300,000.00
Gross Profit ₱ 1,500,000.00 ₱ 900,000.00 ₱ 1,500,000.00 ₱ 2,100,000.00
Operating Expenses ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00
Operating Profit ₱ 1,300,000.00 ₱ 780,000.00 ₱ 1,300,000.00 ₱ 1,820,000.00
Interest Expense ₱ 77,141.33 ₱ 77,141.33 ₱ 77,141.33 ₱ 77,141.33
Total ₱ 1,222,858.67 ₱ 622,858.67 ₱ 1,222,858.67 ₱ 1,822,858.67

2022 Operating Budget

Total Revenue ₱ 8,268,750.00 ₱ 4,961,250.00 ₱ 8,268,750.00 ₱ 11,576,250.00
Total COGS ₱ 6,641,250.00 ₱ 3,984,750.00 ₱ 6,641,250.00 ₱ 9,297,750.00
Gross Profit ₱ 1,627,500.00 ₱ 976,500.00 ₱ 1,627,500.00 ₱ 2,278,500.00
Operating Expenses ₱ 215,000.00 ₱ 215,000.00 ₱ 215,000.00 ₱ 215,000.00
Operating Profit ₱ 1,412,500.00 ₱ 847,500.00 ₱ 1,412,500.00 ₱ 1,977,500.00
Interest Expense ₱ 77,141.33 ₱ 77,141.33 ₱ 77,141.33 ₱ 77,141.33
Tota ₱ 1,335,358.67 ₱ 684,358.67 ₱ 1,335,358.67 ₱ 1,986,358.67

2022 Operating Budget

Total Revenue ₱ 10,935,000.00 ₱ 6,561,000.00 ₱ 10,935,000.00 ₱ 15,309,000.00
Total COGS ₱ 10,449,601.50 ₱ 6,269,760.90 ₱ 10,449,601.50 ₱ 14,629,442.10
Gross Profit ₱ 485,398.50 ₱ 291,239.10 ₱ 485,398.50 ₱ 679,557.90
Operating Expenses ₱ 232,250.00 ₱ 232,250.00 ₱ 232,250.00 ₱ 232,250.00
Operating Profit ₱ 253,148.50 ₱ 151,889.10 ₱ 253,148.50 ₱ 354,407.90
Interest Expense ₱ 77,141.33 ₱ 77,141.33 ₱ 77,141.33 ₱ 77,141.33
Total ₱ 176,007.17 -₱ 18,152.23 ₱ 176,007.17 ₱ 370,166.57

The sensitivity analysis shows that if the sales decreased to 60% the business is no longer viable for the business is o
ger viable for the business is only operating to be in breakeven. However, if the business is operating at 100% the restaurant is earning the
% the restaurant is earning the ideal amounts. Consequently, if the sales are upped into 140% the restaurant is more viable for there are m
re viable for there are more earnings to be generated when the sales is increased. For the 2022 and 2023 if the restaurant operates on 100
he restaurant operates on 100% it would generate earnings. However, if the restaurant in 2024 performs only at 100% sales its earnings w
nly at 100% sales its earnings will significantly drop, and would result to losses.
The Investment may be record in just 1.67 years, such investment would still be profitable in the upcoming years as long as th
Since the DPP is just 1.23 years, it is viable to invest in the restaurant for the investment may easily be recovered in just 1.23 y
ming years as long as the industry allows it to be so.
recovered in just 1.23 years.
Investing your hard earned money is just a risky move especially in this time. As you can see in the master budget, t
an see in the master budget, the trend of profitability slowly declines. This could be blamed on the increased costs due to the pandemic w
d costs due to the pandemic we are facing today. If this business proposal is given to me for approval or even just for investment. I would g
n just for investment. I would glady decline, even if the financial ratios are great, the flaw in this business is hidden in its production costs.
idden in its production costs. Since all the materials needed to produce set a, set b, set c, and set d are volatile and is strongly affected by
tile and is strongly affected by other market forces. Hence, in this point in time even if the investment on the restaurant looks enticing, the
restaurant looks enticing, the trend seen in the proforma financial statements are alarming.