HORIZONTAL ANALYS

BALANCE SHEET
Assets
Cash
Building
Store Equipment
Water System
Delivery Vehicle
Furniture and Fixture
Total Assets

Liabilities and Owner's Equity

Long-term debt payable
Issuance of Bonds
Total Liabilities
Partners Equity
Initial Investment

Total Liability & Owner's Equity

INCOME STATEMENT
Sales Revenue
Less: Cost of Sale
Gross: Profit
Less: Operating Expenses
Income Before Tax
Less: Income Tax Expense(30%)
Net Income

VERTICAL ANALYSIS
BALANCE SHEET
Assets YEAR 1
Cash 711,156.82
Building 135,000.00
Store Equipment 39,110.61
Water System 45,000.00
Delivery Vehicle 90,000.00
 Furniture and Fixture 8,548.00
Total Assets 1,028,815.43

Liabilities and Owner's Equity

Long-term debt payable 115,487.40
Issuance of Bonds
Total Liabilities 115,487.40
Partners Equity
Initial Investment 913,328.03

Total Liability & Owner's Equity 1,028,815.43

INCOME STATEMENT
YEAR 1
Sales Revenue 1,410,400.00
Less: Cost of Sale 350,100.00
Gross: Profit 1,060,300.00
Less: Operating Expenses 469,831.39
Income Before Tax 590,468.61
Less: Income Tax Expense(30%) 177,140.58
Net Income 413,328.03
 HORIZONTAL ANALYSIS

CY-PY Amount change/base year

YEAR 1 YEAR 2 Amount Change Percentage Change
711,156.82 1,402,705.73 691,548.92 49.30%
135,000.00 120,000.00 (15,000.00) -12.50%
39,110.61 33,571.22 (5,539.39) -16.50%
45,000.00 40,000.00 (5,000.00) -12.50%
90,000.00 80,000.00 (10,000.00) -12.50%
8,548.00 7,776.00 (772.00) -9.93%
1,028,815.43 1,684,052.95 655,237.53 38.91%

115,487.40 115,487.40 - 0.00%

115,487.40 115,487.40 - 0.00%

913,328.03 1,568,565.55 655,237.53

1,028,815.43 1,684,052.95 655,237.53 38.91%

CY-PY Amount change/base year

YEAR 1 YEAR 2 Amount Change Percentage Change
1,410,400.00 1,551,440.00 141,040.00 9.09%
350,100.00 353,565.00 3,465.00 0.98%
1,060,300.00 1,197,875.00 137,575.00 11.48%
469,831.39 426,803.39 (43,028.00) -10.08%
590,468.61 771,071.61 180,603.00 23.42%
177,140.58 231,321.48 54,180.90 23.42%
413,328.03 539,750.13 126,422.10 23.42%

CAL ANALYSIS

year 1 common size YEAR 2 year 2 common size

69.12% 1,402,705.73 83.29%
13.12% 120,000.00 7.13%
3.80% 33,571.22 1.99%
4.37% 40,000.00 2.38%
8.75% 80,000.00 4.75%
 0.83% 7,776.00 0%
100.00% 1,684,052.95 100%

11% 115,487.40 6.86%

11% 115,487.40 6.86%

89% 1,568,565.55 93.14%

100% 1,684,052.95 100%

year 1 common size AS 1` PESO YEAR 2 year 1 common size AS 1 PESO

100.00% 1 1,551,440.00 100% 1.00
24.82% 0.25 353,565.00 23% 0.23
75.18% 0.75 1,197,875.00 77% 0.77
33.31% 0.33 426,803.39 28% 0.28
41.87% 0.42 771,071.61 50% 0.50
13% 0.13 231,321.48 15% 0.15
29% 0.29 539,750.13 35% 0.35
 Income Statement
For Five Year Projection
Year 1 Year 2
Sales Revenue 1,410,400.00 1,551,440.00
Less: Cost of Goods Sold 350,100.00 353,565.00
Gross Profit 1,060,300.00 1,197,875.00
Less: Operating Expenses
Land Rental 60,000.00 60,000.00
Salaries and Wages 226,080.00 226,080.00
Promotional Expense 48,000.00
Supplies Expense 4,279.00 4,492.95
Utilities Expense 36,000.00 37,800.00
Repairs and Maintainance 24,000.00 25,200.00
SSS,PHIC,HDMF Contribuion 25,296.00 26,560.80
Permits and Licenses 9,865.00 10,358.25
Depreciation Expense 36,311.39 36,311.39
Total Operating Expenses 469,831.39 426,803.39
Income Before Tax 590,468.61 771,071.61
Less: Income Tax Expense(30%) 177,140.58 231,321.48
Net Income 413,328.03 539,750.13

Statement of Cost of Goods Sold

Year 1 Year 2 Year 3
Beginning Inventory - - -
Add:
Purchase of Raw Materials 69,300.00 72,765.00 76,403.25
Direct Labor 280,800.00 280,800.00 280,800.00
Cost of Goods Sold 350,100.00 353,565.00 357,203.25

Yearly Production Cost

Total Cost
Item Unit Quantity Price
Monthly
Seeds pack 50 100 5,000.00
Organic Fertilizer sack 7 100 700.00
Organic Insecticide liter 3 25 75.00
Total 5,775.00
ment
ojection
Year 3 Year 4 Year 5
1,706,584.00 1,877,242.40 2,064,966.64
357,203.25 361,023.41 365,034.58
1,349,380.75 1,516,218.99 1,699,932.06

60,000.00 60,000.00 60,000.00

226,080.00 226,080.00 226,080.00

4,717.60 4,953.48 5,201.15

39,690.00 41,674.50 43,758.23
26,460.00 27,783.00 29,172.15
27,888.84 29,283.28 30,747.45
10,876.16 11,419.97 11,990.97
36,311.39 36,311.39 36,311.39
432,023.99 437,505.62 443,261.33
917,356.76 1,078,713.37 1,256,670.73
275,207.03 323,614.01 377,001.22
642,149.73 755,099.36 879,669.51

d
Year 4 Year 5
- -

80,223.41 84,234.58
280,800.00 280,800.00
361,023.41 365,034.58

Total Cost
Yearly
60,000.00
8,400.00
900.00
69,300.00
 STATEMENT OF CASH FLOW
FIVE YEAR PROJECTION

OPERATING ACTIVITIES Pre Operating Year 1 Year 2 Year 3

Net Income: 413,328.03 539,750.13 642,149.73
Add: Depreciation 36,311.39 36,311.39 36,311.39
Cash Flow from Operating 449,639.42 576,061.52 678,461.12

INVESTING ACTIVITIES
Building 150,000.00 - - -
Store Equipment 44,650.00 - - -
Water System 50,000.00
Delivery Vehicle 100,000.00
Furniture and Fixture 9,320.00 - - -
Cash Flow from Investing 353,970.00 - - -

FINANCING ACTIVITIES
Long-term debt payable 115,487.40 115,487.40 115,487.40
ISSUANCE OF BONDS 500,000.00 - - -
INITIAL INVESTMENT - - -

Cash Flow from Financing 500,000.00 115,487.40 115,487.40 115,487.40

Net Cash Flow 146,030.00 565,126.82 691,548.92 793,948.52

Cash Balance Beginning 146,030.00 711,156.82 1,402,705.73
Cash Balance Ending 146,030.00 711,156.82 1,402,705.73 2,196,654.25

Amortization Schedule and Loan Summary

Annual Interest Rate: 5%
Loan Term: 5
Payment per Year: 115,487.40
Loan Amount: 500,000.00

Annual
YEAR Beg Amount Installment Interest
1 500,000.00 115,487.40 25,000.00
2 409,512.60 115,487.40 20,475.63
3 314,500.83 115,487.40 15,725.04
4 214,738.47 115,487.40 10,736.92
5 109,988.00 115,487.40 5,499.40
 Assets
Year 4 Year 5 Current Assets:
755,099.36 879,669.51 Cash
36,311.39 36,311.39 Total Current Assets
791,410.75 915,980.90
Non-Current Assets
Building
- - Accumulated Depreciation (Building)
- - Store Equipment
Accumulated Depreciation (Equipment)
Water System
- - Accumulated Depreciation (Water System)
- - Delivery Vehicle
Accumulated Depreciation (Delivery Vehicle)
Furniture and Fixture
115,487.40 115,487.40 Accumulated Depreciation (F&F)
- - Total Non-Current Assets
- -
Total Assets
115,487.40 115,487.40
Liabilities and Owner's Equity
906,898.15 1,031,468.30 Liabilities
2,196,654.25 3,103,552.40 Issuance of Bonds
3,103,552.40 4,135,020.70 Long-term debt payable
Total Liabilities

Partners Equity
Initial Investment

Add: Net Income

Total Liability & Owner's Equity

Principal Remaining
Payment Balance
90,487.40 409,512.60
95,011.77 314,500.83
99,762.36 214,738.47
104,750.48 109,988.00
109,988.00 -
 Projected Balance Sheet
For Five Year Projection
Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5

146,030.00 711,156.82 1,402,705.73 2,196,654.25 3,103,552.40 4,135,020.70

146,030.00 711,156.82 1,402,705.73 2,196,654.25 3,103,552.40 4,135,020.70

150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00

(15,000.00) (30,000.00) (45,000.00) (60,000.00) (75,000.00)
44,650.00 44,650.00 44,650.00 44,650.00 44,650.00 44,650.00
(5,539.39) (11,078.78) (16,618.17) (22,157.56) (27,696.95)
50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
ter System) (5,000.00) (10,000.00) (15,000.00) (20,000.00) (25,000.00)
100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
ivery Vehicle) (10,000.00) (20,000.00) (30,000.00) (40,000.00) (50,000.00)
9,320.00 9,320.00 9,320.00 9,320.00 9,320.00 9,320.00
(772.00) (1,544.00) (2,316.00) (3,088.00) (3,860.00)
353,970.00 317,658.61 281,347.22 245,035.83 208,724.44 172,413.05

500,000.00 1,028,815.43 1,684,052.95 2,441,690.08 3,312,276.84 4,307,433.75

500,000.00
115,487.40 115,487.40 115,487.40 115,487.40 115,487.40

- 500,000.00 1,028,815.43 1,684,052.95 2,441,690.08 3,312,276.84

413,328.03 539,750.13 642,149.73 755,099.36 879,669.51

500,000.00 1,028,815.43 1,684,052.95 2,441,690.08 3,312,276.84 4,307,433.75

Financial Ratios Year 1 Year 2 Year 3

Gross Profit
Gross Profit Margin =
Sales Revenue

1,060,300.00 1,197,875.00 1,349,380.75

=
1,410,400.00 1,551,440.00 1,706,584.00

0.75 0.77 0.79

=

Net Profit Margin = Net Income

Sales Revenue

413,328.03 539,750.13 642,149.73

=
1,410,400.00 1,551,440.00 1,706,584.00

0.29 0.35 0.38

Return on Net Income

Investment =
Initial Investment
413,328.03 539,750.13
=
500,000.00 500,000.00
= 0.83 1.08

Year 1: For every Php1.00 invested in this project will yield Php0.83
Year 2: For every Php1.00 invested in this project will yield Php1.08
 Year 4 Year 5

1,516,218.99 1,699,932.06
1,877,242.40 2,064,966.64

0.81 0.82

755,099.36 879,669.51
1,877,242.40 2,064,966.64

0.40 0.43
Capital Budgeting Decision
Payback Period
Cash flow Year 1 Year 2
Net Income 413,328.03 539,750.13
Add: Depreciation exp. 36,311.39 36,311.39
449,639.42 576,061.52

Year Annual Cash Inflow Unrecoverd Cost

0 (500,000.00)
1 449,639.42 (50,360.58)
2 576,061.52 525,700.93
3 678,461.12 1,204,162.06
4 791,410.75 1,995,572.80
5 915,980.90 2,911,553.70

Payback Period

Discounted Payback at 10%

Cashflow
Year Annual Cash Inflow Unrecoverd Cost
(1+Rate)^Years

0 (500,000.00)
1 449,639.42 408,763.11 (91,236.89)
2 576,061.52 476,083.90 384,847.00
3 678,461.12 509,737.88 894,584.89
4 791,410.75 540,544.19 1,435,129.08
5 915,980.90 568,752.07 2,003,881.15
Total 2,503,881.15

Cashflow
Year Cash Flow
(1+Rate)^Years
 0 (500,000.00) (500,000.00)
1 449,639.42 408,763.11
2 576,061.52 476,083.90
3 678,461.12 509,737.88
4 791,410.75 540,544.19
5 915,980.90 568,752.07
Total 2,503,881.15

NPV = 2,003,881.15
Period
Year 3 Year 4 Year 5
642,149.73 755,099.36 879,669.51
36,311.39 36,311.39 36,311.39
678,461.12 791,410.75 915,980.90

Solution
50,360.58
1 +
576,061.52

1 + 0.08742223098

1.09 or 1 year and

2 months the investment will be recovered

Solution

1 + 91,236.89
476,083.90

1 + 0.1916403683324

1.19

1 year and
4 months the investment will be recovered.