CHAPTER 5

FINANCIAL ASPECT

Introduction

Putting up a business raises the need for adequate investment. Even

those tagged as “not for profit” cannot deny that money is essential in order to
established an organization and sustain all its necessities.

The financial study is an important aspect in doing business, considering

the numerous businesses that suffer due to mismanagement of its financial
aspect. Given this fact, an organization that aims for success must be able to
plot and put into action the best possible way to handle finances. In this chapter,
matters concerning financial activities will be discussed including the capital
needed in for the business to operate well, projected financial statements and
financial ratios. This chapter will illuminate how the partners’ investments will be
spent as well as how money will flow in and out of the business.

FINANCIAL ASSUMPTIONS

 The capitalization scheme of “Tails are Moving” will be P1, 500,000 with
P300, 000 capital contribution from each partner.
 Price per service will increase by 3% annually due to changes in
economic conditions.
 Cost of supplies is estimated to increase by 1.6% each year due to
inflation rate.
 Salaries will increase by 5% annually.

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 Grooming service supplies are to be updated every month while
medication supplies are to be updated every two (2) months and
boarding supplies are to be updated every three (3) months and when the
need arises. All of these are to be expensed 80% annually.
 Administrative supplies are to be updated every two (2) months and when
the need arises. These are to be expensed 80% annually.
 Sanitary supplies are to be updated every three (3) months to maintain
cleanliness and sanitation of the service tools and materials and
equipment. 90% of such supplies are estimated to be expensed.
 Straight line method will be used for computing depreciation expense.
 The amortization of leasehold improvements is 10 years, since the
contract of lease (10 years) and the useful life of improvement are the
same.
 85% of utilities, rent expense, and depreciation expense of the leasehold
improvement are allotted for service department and the remaining 15%
are allotted for administrative department.
 Petty cash fund is assumed to be Php5, 000 for a period of one (1) year.
 Owner’s drawing is equivalent to Php120, 000 per annum.
 SSS, Phil Health and HDMF premiums payable at year end is equivalent
to one month.
 Income tax is 30% of the operating income.
 Value-Added-Tax is computed using 12% rate.
 The company will deposit P150,000 in the first year and P100,000 for the
succeeding years

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 Tails are Moving
Total Project Cost

Long Term Capital Cost:

Service Materials and Tools 27,577.10
Service Equipment 109,609.10
Customized Vehicle 500,000.00
Admin. Equipment 136,946.00
Admin. Furniture and Fixtures 36,348.00
Leasehold Improvements 100,000.00
TOTAL 910,480.20
Pre-Operating Cost:
Taxes and Licenses 13,415.00
Uniform Expense 7,000.00
Advertising Expense 10,000.00
Training and Seminar Expense 5,000.00
TOTAL 35,415.00
Initial Operating Capital:
Service Supplies 133,268.90
Administrative Supplies 2,888.00
Sanitary Supplies 5,586.00
Prepaid Rent (1 month) 50,000.00
Initial Cash Fund 362,361.90
TOTAL 554,104.80
TOTAL PROJECT COST 1,500,000.00

Figure 5.1

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 Tails are Moving
Pre-Operating Cash Flow
CASH INFLOW:
Cash Provided by the Partners:
Kara A. Cledera 300,000.00
Alfonso Tomas B. Riego 300,000.00
Eudora C. Ilustre 300,000.00
Alyssa D. Becina 300,000.00
Rufus E. Soliven 300,000.00
TOTAL 1,500,000.00
CASH OUTFLOW:
Service Materials and Tools 27,577.10
Service Equipment 109,609.10
Customized Vehicle 500,000.00
Admin. Equipment 136,946.00
Admin. Furniture and Fixtures 36,348.00
Leasehold Improvements 100,000.00
Taxes and Licenses 13,415.00
Uniform Expense 7,000.00
Advertising Expense 10,000.00
Training and Seminar Expense 5,000.00
Service Supplies 133,268.90
Administrative Supplies 2,888.00
Sanitary Supplies 5,586.00
Prepaid Rent (1 month) 50,000.00
TOTAL 1,137,638.10
CASH ENDING BALANCE 362,361.90

Figure 5.2

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 Tails are Moving
Pre-Operating Statement of Financial Position

ASSETS
Current Assets:
Initial Cash Fund 362,361.90
Service Supplies 133,268.90
Administrative Supplies 2,888.00
Sanitary Supplies 5,586.00
Prepaid Rent (1 month) 50,000.00
Prepaid Expenses 35,415.00
TOTAL 589,519.80
Non-Current Assets:
Service Materials and Tools 27,577.10
Service Equipments 109,609.10
Customized Vehicle 500,000.00
Admin. Equipment 136,946.00
Admin. Furniture and Fixtures 36,348.00
Leasehold Improvements 100,000.00
TOTAL 910,480.20
TOTAL ASSETS 1,500,000.00

LIABILITIES & PARTNER'S EQUITY

LIABILITIES
Current Liabilities:
Partner's Equity:
Kara A. Cledera 300,000.00
Alfonso Tomas B. Riego 300,000.00
Eudora C. Ilustre 300,000.00
Alyssa D. Becina 300,000.00
Rufus E. Soliven 300,000.00
TOTAL LIABILITIES AND PARTNER'S EQUITY: 1,500,000.00

Figure 5.3

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 Tails are Moving
Projected Income Statement
For the year's ended, December 31 (next 5 years)
YEAR
2016 2017 2018 2019 2020
Service Income 3,692,877.50 3,916,832.50 4,236,385.88 4,670,151.29 5,241,888.46
Cost of Service 2,378,403.69 2,437,754.62 2,507,268.18 2,583,308.32 2,666,676.99
Gross Income 1,314,473.81 1,479,077.88 1,729,117.70 2,086,842.97 2,575,211.46
Operating Expenses 950,571.34 965,524.49 998,457.81 1,034,321.32 1,069,089.65
Operating Income 363,902.47 513,553.38 730,659.88 1,052,521.65 1,506,121.81
Other Income 89,900.00 94,560.00 101,161.20 109,854.42 121,090.51
Net Income before Tax 453,802.47 608,113.38 831,821.08 1,162,376.08 1,627,212.33
Income Tax (30%) 136,140.74 182,434.01 249,546.32 348,712.82 488,163.70
Net Income 317,661.73 425,679.37 582,274.76 813,663.26 1,139,048.63

Figure 5.4

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 Tail's are Moving
Projected Changes in Partner's Equity

2016
Partners
Account TOTAL
Cledera, Capital Riego, Capital Ilustre, Capital Becina, Capital Soliven, Capital
Beginning Capital 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 1,500,000.00
Add/Less: Net Income (Net Loss) 63,532.35 63,532.35 63,532.35 63,532.35 63,532.35 317,661.73
Total 363,532.35 363,532.35 363,532.35 363,532.35 363,532.35 1,817,661.73
Drawings 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 600,000.00
Ending Capital 243,532.35 243,532.35 243,532.35 243,532.35 243,532.35 1,217,661.73
2017
Partners
Account TOTAL
Cledera, Capital Riego, Capital Ilustre, Capital Becina, Capital Soliven, Capital
Beginning Capital 243,532.35 243,532.35 243,532.35 243,532.35 243,532.35 1,217,661.73
Add/Less: Net Income (Net Loss) 85,135.87 85,135.87 85,135.87 85,135.87 85,135.87 425,679.37
Total 328,668.22 328,668.22 328,668.22 328,668.22 328,668.22 1,643,341.10
Drawings 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 600,000.00
Ending Capital 208,668.22 208,668.22 208,668.22 208,668.22 208,668.22 1,043,341.10
2018
Partners
Account TOTAL
Cledera, Capital Riego, Capital Ilustre, Capital Becina, Capital Soliven, Capital
Beginning Capital 208,668.22 208,668.22 208,668.22 208,668.22 208,668.22 1,043,341.10
Add/Less: Net Income (Net Loss) 116,454.95 116,454.95 116,454.95 116,454.95 116,454.95 582,274.76
Total 325,123.17 325,123.17 325,123.17 325,123.17 325,123.17 1,625,615.85
Drawings 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 600,000.00
Ending Capital 205,123.17 205,123.17 205,123.17 205,123.17 205,123.17 1,025,615.85
2019
Partners
Account TOTAL
Cledera, Capital Riego, Capital Ilustre, Capital Becina, Capital Soliven, Capital
Beginning Capital 205,123.17 205,123.17 205,123.17 205,123.17 205,123.17 1,025,615.85
Add/Less: Net Income (Net Loss) 162,732.65 162,732.65 162,732.65 162,732.65 162,732.65 813,663.26
Total 367,855.82 367,855.82 367,855.82 367,855.82 367,855.82 1,839,279.11
Drawings 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 600,000.00
Ending Capital 247,855.82 247,855.82 247,855.82 247,855.82 247,855.82 1,239,279.11
2020
Partners
Account TOTAL
Cledera, Capital Riego, Capital Ilustre, Capital Becina, Capital Soliven, Capital
Beginning Capital 247,855.82 247,855.82 247,855.82 247,855.82 247,855.82 1,239,279.11
Add/Less: Net Income (Net Loss) 227,809.73 227,809.73 227,809.73 227,809.73 227,809.73 1,139,048.63
Total 475,665.55 475,665.55 475,665.55 475,665.55 475,665.55 2,378,327.74
Drawings 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 600,000.00
Ending Capital 355,665.55 355,665.55 355,665.55 355,665.55 355,665.55 1,778,327.74

Figure 5.5

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 Tails are Moving
Projected Statement of Cash Flow
For the years 2016-2020
YEAR
2016 2017 2018 2019 2020
Cash Flow from Operating Activities:
Net Income 317,661.73 425,679.37 582,274.76 813,663.26 1,139,048.63
(Increase)/Decrease in Prepaid Supplies (40,759.20) (2,920.04) (2,966.76) (3,014.24) (3,062.45)
(Increase)/Decrease in Prepaid Expense and Rent 85,415.00 - - - -
Depreciation 66,666.03 58,628.03 58,628.03 58,628.03 58,628.03
Depreciation of Leasehold Improvement 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Increase/(Decrease) in Trade and other Payables 435,070.73 60,442.90 86,846.58 122,595.91 166,889.31
Net Cash Provided(Used) in Operating Activities 867,966.97 554,241.66 734,782.61 1,001,872.96 1,371,503.53

Cash Flow from Financing Activities:

Additional Investment of the Partners - - - - -
Partners' Drawings (600,000.00) (600,000.00) (600,000.00) (600,000.00) (600,000.00)
Net Cash Provided(Used) in Financing Activities (600,000.00) (600,000.00) (600,000.00) (600,000.00) (600,000.00)

Increase/(Decrease) in Cash & Cash Equivalent 267,966.97 (45,758.34) 134,782.61 401,872.96 771,503.53

Beginning Cash & Cash Equivalent 362,361.90 630,328.87 584,570.53 719,353.14 1,121,226.10
Cash and Cash Equivalent Ending Balances 630,328.87 584,570.53 719,353.14 1,121,226.10 1,892,729.63

Figure 5.6

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 Tails are Moving
Projected Statement of Financial Positon
For the years ended, December 31 (next 5 years)

YEAR
ACCOUNT
2016 2017 2018 2019 2020
ASSETS
Current Assets:
Cash and Cash Equivalent 630,328.87 584,570.53 719,353.14 1,121,226.10 1,892,729.63
Service Supplies 176,802.10 179,630.93 182,505.03 185,425.11 188,391.91
Administrative Supplies 3,465.60 3,521.05 3,577.39 3,634.62 3,692.78
Sanitary Supplies 2,234.40 2,270.15 2,306.47 2,343.38 2,380.87
Total Current Assets 812,830.97 769,992.66 907,742.03 1,312,629.21 2,087,195.19
Non-Current Assets:
Service Materials and Tools 19,361.81 15,334.53 11,307.24 7,279.96 3,252.67
Service Equipment 102,249.10 90,889.10 79,529.10 68,169.10 56,809.10
Customized Vehicle 475,000.00 450,000.00 425,000.00 400,000.00 375,000.00
Administrative Equipment 121,106.40 107,566.80 94,027.20 80,487.60 66,948.00
Administrative Furnitures & Fix. 30,096.86 25,395.71 20,694.57 15,993.43 11,292.29
Leasehold Improvements 90,000.00 80,000.00 70,000.00 60,000.00 50,000.00
Total Non-Current Assets 837,814.17 769,186.14 700,558.11 631,930.09 563,302.06

TOTAL ASSETS 1,650,645.14 1,539,178.81 1,608,300.14 1,944,559.30 2,650,497.25

LIABILITIES AND PARTNER'S EQUITY

Current Liabilities:
Trade and Other Payables 432,983.41 495,837.71 582,684.29 705,280.19 872,169.51
Partners' Equity:
Kara A. Cledera 243,532.35 208,668.22 205,123.17 247,855.82 355,665.55
Alfonso Tomas B. Riego 243,532.35 208,668.22 205,123.17 247,855.82 355,665.55
Eudora C. Ilustre 243,532.35 208,668.22 205,123.17 247,855.82 355,665.55
Alyssa D. Becina 243,532.35 208,668.22 205,123.17 247,855.82 355,665.55
Rufus E. Soliven 243,532.35 208,668.22 205,123.17 247,855.82 355,665.55
Total Partners' Equity 1,217,661.73 1,043,341.10 1,025,615.85 1,239,279.11 1,778,327.74

TOTAL LIABILITIES AND PARTNER'S EQUITY 1,650,645.14 1,539,178.81 1,608,300.14 1,944,559.30 2,650,497.25

Figure 5.7

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 TAILS ARE MOVING

NOTES TO FINANCIAL STATEMENTS

Note 1 – Compliance with PFRS

The financial statements have been prepared in accordance with the

Philippine Financial Reporting Standards and regulations of the Securities and
Exchange Commission.

The accounting policies adopted in the preparation of financial statements

have been applied on a consistent basis.

Note 2 - Significant Accounting Policies

 Pre – Operating Cost – These are charge to expense in the year incurred
 Service and administrative equipment are recorded at cost. The straight
line method is used in recording depreciation on the basis of the estimated
useful life.
 Cash consist of petty cash fund of Php5,000 every year

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Note 3 – Service Income Schedule

Capacity in Grooming
Pack 1 (12%) 532
Pack 2 (18%) 798
Pack 3 (43%) 1907
Pack 4 (27%) 1198
TOTAL 4435
*percentages on each pack are based on survey.
*percentages on small, medium, large are assumed.

Tails are Moving

Projected Service 2016
Package 1 (12%)
Pet Size Est. Rendered Service Price Service Fees
Small (40%) 213 250.00 53,250.00
Medium (45%) 239 300.00 71,700.00
Large (15%) 80 400.00 32,000.00
TOTAL 156,950.00
Package 2 (18%)
Small (40%) 319 300.00 95,700.00
Medium (45%) 359 350.00 125,650.00
Large (15%) 120 450.00 54,000.00
TOTAL 275,350.00
Package 3 (43%)
Small (40%) 763 400.00 305,120.00
Medium (45%) 858 500.00 429,075.00
Large (15%) 286 650.00 185,932.50
TOTAL 920,127.50
Package 4 (27%)
Small (40%) 479 450.00 215,550.00
Medium (45%) 539 650.00 350,350.00
Large (15%) 180 850.00 153,000.00
TOTAL 718,900.00
TOTAL SERVICE FEES 2,071,327.50

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 Tails are Moving
Projected Service 2017
Package 1 (12%)
Pet Size Est. Rendered Service Price Service Fees
Small (40%) 219 257.50 56,392.50
Medium (45%) 246 309.00 76,014.00
Large (15%) 82 412.00 33,784.00
TOTAL 166,190.50
Package 2 (18%)
Small (40%) 329 309.00 101,661.00
Medium (45%) 370 360.50 133,385.00
Large (15%) 124 463.50 57,474.00
TOTAL 292,520.00
Package 3 (43%)
Small (40%) 786 412.00 323,832.00
Medium (45%) 884 515.00 455,260.00
Large (15%) 295 669.50 197,502.50
TOTAL 976,594.50
Package 4 (27%)
Small (40%) 493 463.50 228,505.50
Medium (45%) 555 669.50 371,572.50
Large (15%) 185 875.50 161,967.50
TOTAL 762,045.50
TOTAL SERVICE FEES 2,197,350.50

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 Tails are Moving
Projected Service 2018
Package 1 (12%)
Pet Size Est. Rendered Service Price Service Fees
Small (40%) 230 265.23 61,001.75
Medium (45%) 258 318.27 82,113.66
Large (15%) 86 424.36 36,494.96
TOTAL 179,610.37
Package 2 (18%)
Small (40%) 345 318.27 109,803.15
Medium (45%) 389 371.32 144,441.54
Large (15%) 130 477.41 62,062.65
TOTAL 316,307.34
Package 3 (43%)
Small (40%) 825 424.36 350,097.00
Medium (45%) 928 530.45 492,257.60
Large (15%) 310 689.59 213,771.35
TOTAL 1,056,125.95
Package 4 (27%)
Small (40%) 518 477.41 247,295.79
Medium (45%) 583 689.59 402,028.06
Large (15%) 194 901.77 174,942.41
TOTAL 824,266.26
TOTAL SERVICE FEES 2,376,309.91

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 Tails are Moving
Projected Service 2019
Package 1 (12%)
Pet Size Est. Rendered Service Price Service Fees
Small (40%) 246 273.18 67,202.71
Medium (45%) 276 327.82 90,477.80
Large (15%) 92 437.09 40,212.35
TOTAL 197,892.86
Package 2 (18%)
Small (40%) 369 327.82 120,964.88
Medium (45%) 416 382.45 159,101.05
Large (15%) 139 491.73 68,350.07
TOTAL 348,416.00
Package 3 (43%)
Small (40%) 883 437.09 385,951.18
Medium (45%) 993 546.36 542,538.96
Large (15%) 332 710.27 235,810.49
TOTAL 1,164,300.62
Package 4 (27%)
Small (40%) 554 491.73 272,416.84
Medium (45%) 624 710.27 443,210.07
Large (15%) 208 928.82 193,194.13
TOTAL 908,821.05
TOTAL SERVICE FEES 2,619,430.53

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 Tails are Moving
Projected Service 2020
Package 1 (12%)
Pet Size Est. Rendered Service Price Service Fees
Small (40%) 268 281.38 75,409.09
Medium (45%) 301 337.65 101,633.45
Large (15%) 100 450.20 45,020.35
TOTAL 222,062.89
Package 2 (18%)
Small (40%) 402 337.65 135,736.36
Medium (45%) 453 393.93 178,449.42
Large (15%) 152 506.48 76,984.80
TOTAL 391,170.59
Package 3 (43%)
Small (40%) 962 450.20 433,095.79
Medium (45%) 1082 562.75 608,900.27
Large (15%) 362 731.58 264,832.22
TOTAL 1,306,828.28
Package 4 (27%)
Small (40%) 604 506.48 305,913.29
Medium (45%) 680 731.58 497,474.89
Large (15%) 227 956.68 217,166.92
TOTAL 1,020,555.11
TOTAL SERVICE FEES 2,940,616.87

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 Capacity in Medication
Deworming (10%) 222
Vaccination (38%) 843
Whelping Assistance (33%) 732
Minor Injury Treatment (5%) 110
Others (14%) 311
TOTAL 2218
*percentages on each service are based on survey.

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 Capacity in Boarding
Without Food (63%) 294
With Food (37%) 172
TOTAL 466

*6653*7%=466 – 7% is based on survey.

*percentages on service are based on survey.

Note 4 – Cost of Service

Grooming

Grooming Direct Costs 2016-2020

Account 2016 2017 2018 2019 2020
Supplies Expense 160,731.36 163,303.06 165,915.91 168,570.57 171,267.69
Depreciation-Mat. & Tools 2,472.29 1,164.29 1,164.29 1,164.29 1,164.29
Depreciation-Equip. 3,385.00 3,385.00 3,385.00 3,385.00 3,385.00
Depreciation-Vehicle 11,250.00 11,250.00 11,250.00 11,250.00 11,250.00
Salaries Expense 520,000.00 546,000.00 573,300.00 601,965.00 632,063.25
Utilities Expense 71,604.00 73,752.12 77,439.73 82,860.51 90,317.95
Rent Expense 229,500.00 229,500.00 229,500.00 229,500.00 229,500.00
Depreciation-Leasehold Imp. 3,825.00 3,825.00 3,825.00 3,825.00 3,825.00
TOTAL 1,002,767.65 1,032,179.47 1,065,779.93 1,102,520.36 1,142,773.19

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Allocation of Cost per Package

Package 1 (12%)
Supplies Expense 11,198.30 11,377.47 11,559.51 11,744.46 11,932.38
Depreciation-Mat. & Tools 45.48 21.42 21.42 21.42 21.42
Dereciation-Equip. 406.20 406.20 406.20 406.20 406.20
Depreciation-Vehicle 1,350.00 1,350.00 1,350.00 1,350.00 1,350.00
Salaries Expense 62,400.00 65,520.00 68,796.00 72,235.80 75,847.59
Utilities Expense 8,592.48 8,850.25 9,292.77 9,943.26 10,838.15
Rent Expense 27,540.00 27,540.00 27,540.00 27,540.00 27,540.00
Depreciation-Leasehold Imp. 459.00 459.00 459.00 459.00 459.00
TOTAL 111,991.46 115,524.35 119,424.90 123,700.15 128,394.74
Package 2 (18%)
Supplies Expense 21,605.52 21,951.21 22,302.43 22,659.27 23,021.81
Depreciation-Mat. & Tools 385.36 181.48 181.48 181.48 181.48
Dereciation-Equip. 609.30 609.30 609.30 609.30 609.30
Depreciation-Vehicle 2,025.00 2,025.00 2,025.00 2,025.00 2,025.00
Salaries Expense 93,600.00 98,280.00 103,194.00 108,353.70 113,771.39
Utilities Expense 12,888.72 13,275.38 13,939.15 14,914.89 16,257.23
Rent Expense 41,310.00 41,310.00 41,310.00 41,310.00 41,310.00
Depreciation-Leasehold Imp. 688.50 688.50 688.50 688.50 688.50
TOTAL 173,112.40 178,320.87 184,249.86 190,742.14 197,864.71
Package 3 (43%)
Supplies Expense 60,158.62 61,121.16 62,099.10 63,092.68 64,102.16
Depreciation-Mat. & Tools 1,253.94 590.53 590.53 590.53 590.53
Dereciation-Equip. 1,455.55 1,455.55 1,455.55 1,455.55 1,455.55
Depreciation-Vehicle 4,837.50 4,837.50 4,837.50 4,837.50 4,837.50
Salaries Expense 223,600.00 234,780.00 246,519.00 258,844.95 271,787.20
Utilities Expense 30,789.72 31,713.41 33,299.08 35,630.02 38,836.72
Rent Expense 98,685.00 98,685.00 98,685.00 98,685.00 98,685.00
Depreciation-Leasehold Imp. 1,644.75 1,644.75 1,644.75 1,644.75 1,644.75
TOTAL 422,425.08 434,827.90 449,130.51 464,780.98 481,939.41
Package 4 (27%)
Supplies Expense 67,768.92 68,853.22 69,954.87 71,074.15 72,211.34
Depreciation-Mat. & Tools 787.51 370.87 370.87 370.87 370.87
Dereciation-Equip. 913.95 913.95 913.95 913.95 913.95
Depreciation-Vehicle 3,037.50 3,037.50 3,037.50 3,037.50 3,037.50
Salaries Expense 140,400.00 147,420.00 154,791.00 162,530.55 170,657.08
Utilities Expense 19,333.08 19,913.07 20,908.73 22,372.34 24,385.85
Rent Expense 61,965.00 61,965.00 61,965.00 61,965.00 61,965.00
Depreciation-Leasehold Imp. 1,032.75 1,032.75 1,032.75 1,032.75 1,032.75
TOTAL 295,238.71 303,506.37 312,974.67 323,297.11 334,574.33

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Allocation of Cost per Package to pet sizes

Tails are Moving

Projected Service Cost 2016-2020
Package 1 (small-40%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 4,479.32 4,550.99 4,623.80 4,697.79 4,772.95
Service Materials & Tools Dep. 18.19 8.57 8.57 8.57 8.57
Service Equipment Dep. 162.48 162.48 162.48 162.48 162.48
Depreciation - Vehicle 540.00 540.00 540.00 540.00 540.00
Salaries Expense - Service 24,960.00 26,208.00 27,518.40 28,894.32 30,339.04
Utilities Expense 3,436.99 3,540.10 3,717.11 3,977.30 4,335.26
Amor. of Leasehold Imp. 183.60 183.60 183.60 183.60 183.60
Rent Expense 11,016.00 11,016.00 11,016.00 11,016.00 11,016.00
Annual Cost of Service 44,796.58 46,209.74 47,769.96 49,480.06 51,357.90
Divide: Rendered Service 213 219 230 246 268
Cost per Service 210.31 211.00 207.70 201.14 191.63
Package 1 (medium-45%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 5,039.24 5,119.86 5,201.78 5,285.01 5,369.57
Service Materials & Tools Dep. 20.47 9.64 9.64 9.64 9.64
Service Equipment Dep. 182.79 182.79 182.79 182.79 182.79
Depreciation - Vehicle 607.50 607.50 607.50 607.50 607.50
Salaries Expense - Service 28,080.00 29,484.00 30,958.20 32,506.11 34,131.42
Utilities Expense 3,866.62 3,982.61 4,181.75 4,474.47 4,877.17
Amor. of Leasehold Imp. 206.55 206.55 206.55 206.55 206.55
Rent Expense 12,393.00 12,393.00 12,393.00 12,393.00 12,393.00
Annual Cost of Service 50,396.16 51,985.96 53,741.20 55,665.07 57,777.63
Divide: Rendered Service 239 246 258 276 301
Cost per Service 210.86 211.33 208.30 201.69 191.95
Package 1 (large-15%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 1,679.75 1,706.62 1,733.93 1,761.67 1,789.86
Service Materials & Tools Dep. 6.82 3.21 3.21 3.21 3.21
Service Equipment Dep. 60.93 60.93 60.93 60.93 60.93
Depreciation - Vehicle 202.50 202.50 202.50 202.50 202.50
Salaries Expense - Service 9,360.00 9,828.00 10,319.40 10,835.37 11,377.14
Utilities Expense 1,288.87 1,327.54 1,393.92 1,491.49 1,625.72
Amor. of Leasehold Imp. 68.85 68.85 68.85 68.85 68.85
Rent Expense 4,131.00 4,131.00 4,131.00 4,131.00 4,131.00
Annual Cost of Service 16,798.72 17,328.65 17,913.73 18,555.02 19,259.21
Divide: Rendered Service 80 82 86 92 100
Cost per Service 209.98 211.33 208.30 201.69 192.59

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 Tails are Moving
Projected Service Cost 2016-2020
Package 2 (small-40%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 8,642.21 8,780.48 8,920.97 9,063.71 9,208.73
Service Materials & Tools Dep. 154.14 72.59 72.59 72.59 72.59
Service Equipment Dep. 243.72 243.72 243.72 243.72 243.72
Depreciation - Vehicle 810.00 810.00 810.00 810.00 810.00
Salaries Expense - Service 37,440.00 39,312.00 41,277.60 43,341.48 45,508.55
Utilities Expense 5,155.49 5,310.15 5,575.66 5,965.96 6,502.89
Amor. of Leasehold Imp. 275.40 275.40 275.40 275.40 275.40
Rent Expense 16,524.00 16,524.00 16,524.00 16,524.00 16,524.00
Annual Cost of Service 69,244.96 71,328.35 73,699.94 76,296.86 79,145.88
Divide: Rendered Service 319 329 345 369 402
Cost per Service 217.07 216.80 213.62 206.77 196.88
Package 2 (medium-45%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 9,722.48 9,878.04 10,036.09 10,196.67 10,359.82
Service Materials & Tools Dep. 173.41 81.67 81.67 81.67 81.67
Service Equipment Dep. 274.19 274.19 274.19 274.19 274.19
Depreciation - Vehicle 911.25 911.25 911.25 911.25 911.25
Salaries Expense - Service 42,120.00 44,226.00 46,437.30 48,759.17 51,197.12
Utilities Expense 5,799.92 5,973.92 6,272.62 6,711.70 7,315.75
Amor. of Leasehold Imp. 309.83 309.83 309.83 309.83 309.83
Rent Expense 18,589.50 18,589.50 18,589.50 18,589.50 18,589.50
Annual Cost of Service 77,900.58 80,244.39 82,912.44 85,833.96 89,039.12
Divide: Rendered Service 359 370 389 416 453
Cost per Service 216.99 216.88 213.14 206.33 196.55
Package 2 (large-15%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 3,240.83 3,292.68 3,345.36 3,398.89 3,453.27
Service Materials & Tools Dep. 57.80 27.22 27.22 27.22 27.22
Service Equipment Dep. 91.40 91.40 91.40 91.40 91.40
Depreciation - Vehicle 303.75 303.75 303.75 303.75 303.75
Salaries Expense - Service 14,040.00 14,742.00 15,479.10 16,253.06 17,065.71
Utilities Expense 1,933.31 1,991.31 2,090.87 2,237.23 2,438.58
Amor. of Leasehold Imp. 103.28 103.28 103.28 103.28 103.28
Rent Expense 6,196.50 6,196.50 6,196.50 6,196.50 6,196.50
Annual Cost of Service 25,966.86 26,748.13 27,637.48 28,611.32 29,679.71
Divide: Rendered Service 120 124 130 139 152
Cost per Service 216.39 215.71 212.60 205.84 195.26

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 Tails are Moving
Projected Service Cost 2016-2020
Package 3 (small-40%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 24,063.45 24,448.46 24,839.64 25,237.07 25,640.87
Service Materials & Tools Dep. 501.58 236.21 236.21 236.21 236.21
Service Equipment Dep. 582.22 582.22 582.22 582.22 582.22
Depreciation - Vehicle 1,935.00 1,935.00 1,935.00 1,935.00 1,935.00
Salaries Expense - Service 89,440.00 93,912.00 98,607.60 103,537.98 108,714.88
Utilities Expense 12,315.89 12,685.36 13,319.63 14,252.01 15,534.69
Amor. of Leasehold Imp. 657.90 657.90 657.90 657.90 657.90
Rent Expense 39,474.00 39,474.00 39,474.00 39,474.00 39,474.00
Annual Cost of Service 168,970.03 173,931.16 179,652.20 185,912.39 192,775.76
Divide: Rendered Service 763 786 825 883 962
Cost per Service 221.45 221.29 217.76 210.55 200.39
Package 3 (medium-45%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 27,071.38 27,504.52 27,944.59 28,391.71 28,845.97
Service Materials & Tools Dep. 564.27 265.74 265.74 265.74 265.74
Service Equipment Dep. 655.00 655.00 655.00 655.00 655.00
Depreciation - Vehicle 2,176.88 2,176.88 2,176.88 2,176.88 2,176.88
Salaries Expense - Service 100,620.00 105,651.00 110,933.55 116,480.23 122,304.24
Utilities Expense 13,855.37 14,271.04 14,984.59 16,033.51 17,476.52
Amor. of Leasehold Imp. 740.14 740.14 740.14 740.14 740.14
Rent Expense 44,408.25 44,408.25 44,408.25 44,408.25 44,408.25
Annual Cost of Service 190,091.29 195,672.55 202,108.73 209,151.44 216,872.74
Divide: Rendered Service 858 884 928 993 1082
Cost per Service 221.55 221.35 217.79 210.63 200.44
Package 3 (large-15%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 9,023.79 9,168.17 9,314.86 9,463.90 9,615.32
Service Materials & Tools Dep. 188.09 88.58 88.58 88.58 88.58
Service Equipment Dep. 218.33 218.33 218.33 218.33 218.33
Depreciation - Vehicle 725.63 725.63 725.63 725.63 725.63
Salaries Expense - Service 33,540.00 35,217.00 36,977.85 38,826.74 40,768.08
Utilities Expense 4,618.46 4,757.01 4,994.86 5,344.50 5,825.51
Amor. of Leasehold Imp. 246.71 246.71 246.71 246.71 246.71
Rent Expense 14,802.75 14,802.75 14,802.75 14,802.75 14,802.75
Annual Cost of Service 63,363.76 65,224.18 67,369.58 69,717.15 72,290.91
Divide: Rendered Service 286 295 310 332 362
Cost per Service 221.55 221.10 217.32 209.99 199.70

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 Tails are Moving
Projected Service Cost 2016-2020
Package 4 (small-40%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 27,107.57 27,541.29 27,981.95 28,429.66 28,884.54
Service Materials & Tools Dep. 315.00 148.35 148.35 148.35 148.35
Service Equipment Dep. 365.58 365.58 365.58 365.58 365.58
Depreciation - Vehicle 1,215.00 1,215.00 1,215.00 1,215.00 1,215.00
Salaries Expense - Service 56,160.00 58,968.00 61,916.40 65,012.22 68,262.83
Utilities Expense 7,733.23 7,965.23 8,363.49 8,948.93 9,754.34
Amor. of Leasehold Imp. 413.10 413.10 413.10 413.10 413.10
Rent Expense 24,786.00 24,786.00 24,786.00 24,786.00 24,786.00
Annual Cost of Service 118,095.48 121,402.55 125,189.87 129,318.84 133,829.73
Divide: Rendered Service 479 493 518 554 604
Cost per Service 246.55 246.25 241.68 233.43 221.57
Package 4 (medium-45%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 30,496.01 30,983.95 31,479.69 31,983.37 32,495.10
Service Materials & Tools Dep. 354.38 166.89 166.89 166.89 166.89
Service Equipment Dep. 411.28 411.28 411.28 411.28 411.28
Depreciation - Vehicle 1,366.88 1,366.88 1,366.88 1,366.88 1,366.88
Salaries Expense - Service 63,180.00 66,339.00 69,655.95 73,138.75 76,795.68
Utilities Expense 8,699.89 8,960.88 9,408.93 10,067.55 10,973.63
Amor. of Leasehold Imp. 464.74 464.74 464.74 464.74 464.74
Rent Expense 27,884.25 27,884.25 27,884.25 27,884.25 27,884.25
Annual Cost of Service 132,857.42 136,577.86 140,838.60 145,483.70 150,558.45
Divide: Rendered Service 539 555 583 624 680
Cost per Service 246.49 246.09 241.58 233.15 221.41
Package 4 (large-15%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense 10,165.34 10,327.98 10,493.23 10,661.12 10,831.70
Service Materials & Tools Dep. 118.13 55.63 55.63 55.63 55.63
Service Equipment Dep. 137.09 137.09 137.09 137.09 137.09
Depreciation - Vehicle 455.63 455.63 455.63 455.63 455.63
Salaries Expense - Service 21,060.00 22,113.00 23,218.65 24,379.58 25,598.56
Utilities Expense 2,899.96 2,986.96 3,136.31 3,355.85 3,657.88
Amor. of Leasehold Imp. 154.91 154.91 154.91 154.91 154.91
Rent Expense 9,294.75 9,294.75 9,294.75 9,294.75 9,294.75
Annual Cost of Service 44,285.81 45,525.95 46,946.20 48,494.57 50,186.15
Divide: Rendered Service 180 185 194 208 227
Cost per Service 246.03 246.09 241.99 233.15 221.08

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 Medication

Tails are Moving

Medication Direct Cost 2016-2020
Account 2016 2017 2018 2019 2020
Supplies Expense 520,781.04 529,113.54 537,579.35 546,180.62 554,919.51
Depreciation-Mat. & Tools 1,610.00 455.00 455.00 455.00 455.00
Depreciation-Equip. 7,335.00 7,335.00 7,335.00 7,335.00 7,335.00
Depreciation-Vehicle 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Utilities Expense 76,377.60 78,668.93 82,602.37 88,384.54 96,339.15
Salaries Expense 429,000.00 450,450.00 472,972.50 496,621.13 521,452.25
Rent Expense 244,800.00 244,800.00 244,800.00 244,800.00 244,800.00
Depreciation-Leasehold Imp. 4,080.00 4,080.00 4,080.00 4,080.00 4,080.00
Annual Cost of Service 1,295,983.64 1,326,902.46 1,361,824.23 1,399,856.29 1,441,380.91

Allocation of Costs per Medication

Deworming (10%)
Account 2016 2017 2018 2019 2020
Supplies Expense 4,081.60 4,146.91 4,213.26 4,280.67 4,349.16
Depreciation-Mat. & Tools - - - - -
Depreciation-Equip. 225.00 225.00 225.00 225.00 225.00
Depreciation-Vehicle 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Utilities Expense 7,637.76 7,866.89 8,260.24 8,838.45 9,633.91
Salaries Expense 42,900.00 45,045.00 47,297.25 49,662.11 52,145.23
Rent Expense 24,480.00 24,480.00 24,480.00 24,480.00 24,480.00
Depreciation-Leasehold Imp. 408.00 408.00 408.00 408.00 408.00
Annual Cost of Service 80,932.36 83,371.80 86,083.74 89,094.24 92,441.30
Divide: Rendered Service 222 229 240 257 280
Cost per Service 364.56 364.07 358.68 346.67 330.15
Vaccination (38%)
Account 2016 2017 2018 2019 2020
Supplies Expense 42,569.52 43,250.63 43,942.64 44,645.72 45,360.06
Depreciation-Mat. & Tools - - - - -
Depreciation-Equip. 855.00 855.00 855.00 855.00 855.00
Depreciation-Vehicle 4,560.00 4,560.00 4,560.00 4,560.00 4,560.00
Utilities Expense 29,023.49 29,894.19 31,388.90 33,586.13 36,608.88
Salaries Expense 163,020.00 171,171.00 179,729.55 188,716.03 198,151.86
Rent Expense 93,024.00 93,024.00 93,024.00 93,024.00 93,024.00
Depreciation-Leasehold Imp. 1,550.40 1,550.40 1,550.40 1,550.40 1,550.40
Annual Cost of Service 334,602.41 344,305.22 355,050.49 366,937.28 380,110.19
Divide: Rendered Service 843 868 911 975 1062.75
Cost per Service 396.92 396.67 389.74 376.35 357.67

119
 Whelping Assistance (33%)
Account 2016 2017 2018 2019 2020
Supplies Expense 49,071.40 49,856.54 50,654.25 51,464.72 52,288.15
Depreciation-Mat. & Tools 410.90 116.12 116.12 116.12 116.12
Depreciation-Equip. 2,541.50 2,541.50 2,541.50 2,541.50 2,541.50
Depreciation-Vehicle 3,960.00 3,960.00 3,960.00 3,960.00 3,960.00
Utilities Expense 25,204.61 25,960.75 27,258.78 29,166.90 31,791.92
Salaries Expense 141,570.00 148,648.50 156,080.93 163,884.97 172,079.24
Rent Expense 80,784.00 80,784.00 80,784.00 80,784.00 80,784.00
Depreciation-Leasehold Imp. 1,346.40 1,346.40 1,346.40 1,346.40 1,346.40
Annual Cost of Service 304,888.81 313,213.81 322,741.98 333,264.61 344,907.33
Divide: Rendered Service 732 754 792 847 923
Cost per Service 416.51 415.40 407.50 393.46 373.68
Minor Injury Treatment (5%)
Account 2016 2017 2018 2019 2020
Supplies Expense 7,011.53 7,123.71 7,237.69 7,353.50 7,471.15
Depreciation-Mat. & Tools - - - - -
Depreciation-Equip. 977.50 977.50 977.50 977.50 977.50
Depreciation-Vehicle 600.00 600.00 600.00 600.00 600.00
Utilities Expense 3,818.88 3,933.45 4,130.12 4,419.23 4,816.96
Salaries Expense 21,450.00 22,522.50 23,648.63 24,831.06 26,072.61
Rent Expense 12,240.00 12,240.00 12,240.00 12,240.00 12,240.00
Depreciation-Leasehold Imp. 204.00 204.00 204.00 204.00 204.00
Annual Cost of Service 46,301.91 47,601.16 49,037.94 50,625.28 52,382.22
Divide: Rendered Service 110 113 119 127 139
Cost per Service 420.93 421.25 412.08 398.62 376.85
Others (14%)
Account 2016 2017 2018 2019 2020
Supplies Expense 418,046.99 424,735.74 431,531.51 438,436.02 445,450.99
Depreciation-Mat. & Tools 1,199.10 338.88 338.88 338.88 338.88
Depreciation-Equip. 2,736.00 2,736.00 2,736.00 2,736.00 2,736.00
Depreciation-Vehicle 1,680.00 1,680.00 1,680.00 1,680.00 1,680.00
Utilities Expense 10,692.86 11,013.65 11,564.33 12,373.84 13,487.48
Salaries Expense 60,060.00 63,063.00 66,216.15 69,526.96 73,003.32
Rent Expense 34,272.00 34,272.00 34,272.00 34,272.00 34,272.00
Depreciation-Leasehold Imp. 571.20 571.20 571.20 571.20 571.20
Annual Cost of Service 529,258.15 538,410.47 548,910.08 559,934.89 571,539.87
Divide: Rendered Service 311 320 336 360 392
Cost per Service 1,701.79 1,682.53 1,633.66 1,555.37 1,458.01

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 Boarding/Accommodation

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Boarding Direct Costs
Account 2016 2017 2018 2019 2020
Supplies Expense 25,696.00 26,107.14 26,524.85 26,949.25 27,380.44
Depreciation-Mat. & Tools 4,133.00 2,408.00 2,408.00 2,408.00 2,408.00
Depreciation-Equip. 640.00 640.00 640.00 640.00 640.00
Depreciation-Vehicle 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00
Utilities Expense 11,138.40 11,472.55 12,046.18 12,889.41 14,049.46
Rent Expense 35,700.00 35,700.00 35,700.00 35,700.00 35,700.00
Depreciation-Leasehold Imp. 595.00 595.00 595.00 595.00 595.00
TOTAL 79,652.40 78,672.69 79,664.03 80,931.66 82,522.90

Allocation of Costs

Tails are Moving

Projected Service Cost 2016-2020
Accommodation without food (63%)
Account 2016 2017 2018 2019 2020
Service Supplies Expense - - - - -
Service Materials & Tools Dep. 2,603.79 1,517.04 1,517.04 1,517.04 1,517.04
Service Equipment Dep. 403.20 403.20 403.20 403.20 403.20
Depreciation - Vehicle 1,102.50 1,102.50 1,102.50 1,102.50 1,102.50
Utilities Expense 7,017.19 7,227.71 7,589.09 8,120.33 8,851.16
Amor. of Leasehold Imp. 374.85 374.85 374.85 374.85 374.85
Rent Expense 22,491.00 22,491.00 22,491.00 22,491.00 22,491.00
Annual Cost of Service 33,992.53 33,116.30 33,477.68 34,008.92 34,739.75
Divide: Rendered Service 294 303 318 340 371
Cost per Service 115.62 109.29 105.28 100.03 93.64
Accommodation with food (37%)
2016 2017 2018 2019 2020
Service Supplies Expense 25,696.00 26,107.14 26,524.85 26,949.25 27,380.44
Service Materials & Tools Dep. 1,529.21 890.96 890.96 890.96 890.96
Service Equipment Dep. 236.80 236.80 236.80 236.80 236.80
Depreciation - Vehicle 647.50 647.50 647.50 647.50 647.50
Utilities Expense 4,121.21 4,244.84 4,457.09 4,769.08 5,198.30
Amor. Of Leasehold Imp. 220.15 220.15 220.15 220.15 220.15
Rent Expense 13,209.00 13,209.00 13,209.00 13,209.00 13,209.00
Annual Cost of Service 45,659.87 45,556.39 46,186.35 46,922.74 47,783.15
Divide: Rendered Service 172 177 186 199 217
Cost per Service 265.46 257.38 248.31 235.79 220.20

121
Note 5 – Operating Expenses

Tails are Moving

Operating Expenses
Account 2016 2017 2018 2019 2020
Gas and Oil Expense 108,000.00 111,240.00 114,577.20 118,014.52 121,554.95
Admin Supplies Expense 13,862.40 14,084.20 14,309.55 14,538.50 14,771.11
Sanitary Supplies Expense 20,109.60 20,431.35 20,758.26 21,090.39 21,427.83
Depreciation Expense - Admin 22,090.74 18,240.74 18,240.74 18,240.74 18,240.74
Depreciation Expense - Leasehold Imp. 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Utilities Expense - Admin 28,080.00 28,922.40 30,368.52 32,494.32 35,418.80
Rent Expense 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00
Taxes and Licenses 13,415.00 2,120.00 2,120.00 2,120.00 2,120.00
Uniform Expense 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00
Advertising Expense 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Trainign and Seminar Expense 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Salaries Expense - Admin 515,500.00 537,275.00 560,138.75 584,145.66 609,353.00
SSS Contribution Expense 84,213.60 87,310.80 90,844.80 94,177.20 95,503.20
PhilHealth Contribution Expense 15,900.00 16,200.00 16,800.00 18,000.00 18,600.00
HDMF Contrbution Expense 15,900.00 16,200.00 16,800.00 18,000.00 18,600.00
TOTAL 950,571.34 965,524.49 998,457.81 1,034,321.32 1,069,089.65

*Gas & oil expense is estimated to be P300 every day and will increase by 3% annually.

TAXES AND LICENSES *succeeding taxes and licenses are only for LTO registration

122
Note 6 – Payroll

123
Note 7 – 13th Month Pay

Tails are Moving

13th Month Pay 2016

Employee 13th Month Pay

General Manager 25,000.00

Resident Veterinarian 20,000.00

On-Call Veterinarian 13,000.00

Cashier Receptionist 8,500.00

Driver/Assistant 8,000.00

124
Groomer/Assistant (1) 8,000.00

Groomer/Assistant (2) 8,000.00

Groomer/Assistant (3) 8,000.00

Groomer/Assistant (4) 8,000.00

13th Month Pay Total 106,500.00

Tails are Moving
13th Month Pay 2017

Employee 13th Month Pay

General Manager 26,250.00

Resident Veterinarian 21,000.00
On-Call Veterinarian 13,650.00
Cashier Receptionist 8,925.00
Driver/Assistant 8,400.00
Groomer/Assistant (1) 8,400.00
Groomer/Assistant (2) 8,400.00
Groomer/Assistant (3) 8,400.00
Groomer/Assistant (4) 8,400.00
13th Month Pay Total 111,825.00

Tails are Moving

13th Month Pay 2018
Employee 13th Month Pay
General Manager 27,562.50
Resident Veterinarian 22,050.00
On-Call Veterinarian 14,332.50
Cashier Receptionist 9,371.25
Driver/Assistant 8,820.00
Groomer/Assistant (1) 8,820.00
Groomer/Assistant (2) 8,820.00
Groomer/Assistant (3) 8,820.00
Groomer/Assistant (4) 8,820.00

125
13th Month Pay Total 117,416.25

Tails are Moving

13th Month Pay 2019
Employee 13th Month Pay
General Manager 28,940.63
Resident Veterinarian 23,152.50
On-Call Veterinarian 15,049.13
Cashier Receptionist 9,839.81
Driver/Assistant 9,261.00
Groomer/Assistant (1) 9,261.00
Groomer/Assistant (2) 9,261.00
Groomer/Assistant (3) 9,261.00
Groomer/Assistant (4) 9,261.00
13th Month Pay Total 123,287.06

Tails are Moving

13th Month Pay 2020
Employee 13th Month Pay
General Manager 30,387.66
Resident Veterinarian 24,310.13
On-Call Veterinarian 15,801.59
Cashier Receptionist 10,331.80
Driver/Assistant 9,724.05
Groomer/Assistant (1) 9,724.05
Groomer/Assistant (2) 9,724.05
Groomer/Assistant (3) 9,724.05
Groomer/Assistant (4) 9,724.05

126
13th Month Pay Total 129,451.43

127
Note 8 – Depreciation

CLINICAL MATERIALS AND TOOLS Book Value

Description Quantity Total Cost Useful Life 2016 DEP 2017-2020 DEP 2016 2017 2018 2019 2020
Digital Infrared 2 855.00 1 855.00 - - - - - -
Veterinary Surgical Scissors 1 1,572.75 7 224.00 224.00 1,348.75 1,124.75 900.75 676.75 452.75
Dental Extraction Kit 1 1,620.00 7 231.00 231.00 1,389.00 1,158.00 927.00 696.00 465.00
Canine Anatomy Poster 1 150.00 1 150.00 - - - - - -
Feline Anatomy Poster 1 150.00 1 150.00 - - - - - -
TOTAL 4,347.75 1,610.00 455.00 2,737.75 2,282.75 1,827.75 1,372.75 917.75
GROOMING MATERIALS AND TOOLS Book Value
Description Quantity Total Cost Useful Life 2016 DEP 2017-2020 DEP 2016 2017 2018 2019 2020
Dog Nail Clipper 3 1,454.25 7 207.00 207.00 1,247.25 1,040.25 833.25 626.25 419.25
Pet Nail Clipper 2 5,201.10 7 743.00 743.00 4,458.10 3,715.10 2,972.10 2,229.10 1,486.10
Flea Comb 2 729.50 1 729.00 - - - - - -
Grooming Scissors 5 1,500.00 7 214.29 214.29 1,285.71 1,071.43 857.14 642.86 428.57
Moulding Comb 2 579.50 1 579.00 - - - - - -
TOTAL 9,464.35 2,472.29 1,164.29 6,992.06 5,827.78 4,663.49 3,499.21 2,334.92
BOARDING MATERIALS AND TOOLS Book Value
Description Quantity Total Cost Useful Life 2016 DEP 2017-2020 DEP 2016 2017 2018 2019 2020
Donut-Shaped Pet Bed 2 2,330.00 5 466.00 466.00 1,864.00 1,398.00 932.00 466.00 -
Rectangular Bed 2 1,665.00 5 333.00 333.00 1,332.00 999.00 666.00 333.00 -
Small-Sized Pet Bed 1 1,580.00 5 316.00 316.00 1,264.00 948.00 632.00 316.00 -
Sponge Pet Bed 1 1,415.00 5 283.00 283.00 1,132.00 849.00 566.00 283.00 -
Pet Bed for All Sizes 2 2,525.00 5 505.00 505.00 2,020.00 1,515.00 1,010.00 505.00 -
Dog Eating Bowl 2 1,195.00 5 239.00 239.00 956.00 717.00 478.00 239.00 -
Cat and Dog Feeder 5 1,330.00 5 266.00 266.00 1,064.00 798.00 532.00 266.00 -
Pet Water Feeder 2 830.00 1 830.00 - - - - - -
Pet Nursing Bottle 3 895.00 1 895.00 - - - - - -
TOTAL 13,765.00 4,133.00 2,408.00 9,632.00 7,224.00 4,816.00 2,408.00

MOBILE Book Value

Description Quantity Total Cost Useful Life TOTAL DEP 2016 2017 2018 2019 2020
Mobile 1 500,000.00 20 25,000.00 475,000.00 450,000.00 425,000.00 400,000.00 375,000.00

ANNUAL DEPRECIATION
Account Cost Lease Term
2016 2017 2018 2019 2020
Leasehold Improvement 100,000.00 10 years 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Book Value 100,000.00 90,000.00 80,000.00 70,000.00 60,000.00 50,000.00
Breakdown
Service Department-85% 85,000.00 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00
10 years
Admin. Department-15% 15,000.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00

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 CLINICAL EQUIPMENT Book Value
Description Quantity Total Cost Useful Life TOTAL DEP 2016 2017 2018 2019 2020
Digital Blood Pressure Monitor 1 2,250.00 10 225.00 2,025.00 1,800.00 1,575.00 1,350.00 1,125.00
Portable Oxygen Concentrator 1 26,100.00 10 2,610.00 23,490.00 20,880.00 18,270.00 15,660.00 13,050.00
Portable Ultrasonic Diagnostic 1 22,500.00 10 2,250.00 20,250.00 18,000.00 15,750.00 13,500.00 11,250.00
Animal Operating Table 1 22,500.00 10 2,250.00 20,250.00 18,000.00 15,750.00 13,500.00 11,250.00
TOTAL 73,350.00 7,335.00 66,015.00 58,680.00 51,345.00 44,010.00 36,675.00
GROOMING EQUIPMENT Book Value
Description Quantity Total Cost Useful Life TOTAL DEP 2016 2017 2018 2019 2020
Bathing Sink 2 3,000.00 10 300.00 2,700.00 2,400.00 2,100.00 1,800.00 1,500.00
Grooming Table with Arm 2 4,049.10 10 404.00 3,645.10 3,241.10 2,837.10 2,433.10 2,029.10
Large-Sized Cage 4 8,000.00 10 800.00 7,200.00 6,400.00 5,600.00 4,800.00 4,000.00
Pet Vacuum Dryer 2 18,810.00 10 1,881.00 16,929.00 15,048.00 13,167.00 11,286.00 9,405.00
TOTAL 33,859.10 3,385.00 30,474.10 27,089.10 23,704.10 20,319.10 16,934.10
BOARDING EQUIPMENT Book Value
Description Quantity Total Cost Useful Life TOTAL DEP 2016 2017 2018 2019 2020
Large-Sized Cage 4 4,000.00 10 400.00 3,600.00 3,200.00 2,800.00 2,400.00 2,000.00
Medium-Sized Cage 4 2,400.00 10 240.00 2,160.00 1,920.00 1,680.00 1,440.00 1,200.00
TOTAL 6,400.00 640.00 5,760.00 5,120.00 4,480.00 3,840.00 3,200.00

ADMINISTRATIVE FURNITURES & FIXTURES Book Value

Description Quantity Total Cost Useful Life 2016 DEP 2017-2020 DEP 2016 2017 2018 2019 2020
Sofa 1 1,800.00 5 360.00 360.00 1,440.00 1,080.00 720.00 360.00 -
Wall Clock 1 250.00 1 250.00 - - - - - -
Living Room Set 1 6,500.00 7 928.57 928.57 5,571.43 4,642.86 3,714.29 2,785.71 1,857.14
Centre Glass Table 1 2,500.00 7 357.14 357.14 2,142.86 1,785.71 1,428.57 1,071.43 714.29
Executive Table 1 7,999.00 7 1,142.71 1,142.71 6,856.29 5,713.57 4,570.86 3,428.14 2,285.43
Offi ce Table 1 2,100.00 10 210.00 210.00 1,890.00 1,680.00 1,470.00 1,260.00 1,050.00
Offi ce Chairs 5 5,300.00 7 757.14 757.14 4,542.86 3,785.71 3,028.57 2,271.43 1,514.29
Mono Block Chairs 2 600.00 1 600.00 - - - - - -
Filing Cabinet 1 6,600.00 10 660.00 660.00 5,940.00 5,280.00 4,620.00 3,960.00 3,300.00
Venetian Blinds 2 700.00 1 700.00 - - - - - -
Water Dispenser 1 1,999.00 7 285.57 285.57 1,713.43 1,427.86 1,142.29 856.71 571.14
TOTAL 36,348.00 6,251.14 4,701.14 30,096.86 25,395.71 20,694.57 15,993.43 11,292.29

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 ADMINISTRATIVE EQUIPMENT Book Value
Description Quantity Total Cost Useful Life 2016 DEP 2017-2020 DEP 2016 2017 2018 2019 2020
Cell Phone 1 700.00 1 700.00 - - - - - -
Computer Set 1 11,500.00 10 1,150.00 1,150.00 10,350.00 9,200.00 8,050.00 6,900.00 5,750.00
Printer 1 1,500.00 10 150.00 150.00 1,350.00 1,200.00 1,050.00 900.00 750.00
Flat Screen T.V 1 4,898.00 10 489.80 489.80 4,408.20 3,918.40 3,428.60 2,938.80 2,449.00
Window Type Air Conditioner
1 8,499.00 10 849.90 849.90 7,649.10 6,799.20 5,949.30 5,099.40 4,249.50
Two-Door Refrigerator 1 7,500.00 10 750.00 750.00 6,750.00 6,000.00 5,250.00 4,500.00 3,750.00
Stand Air Conditioner 1 49,999.00 10 4,999.90 4,999.90 44,999.10 39,999.20 34,999.30 29,999.40 24,999.50
Fluorescent light 5 1,750.00 7 250.00 250.00 1,500.00 1,250.00 1,000.00 750.00 500.00
Generator 1 46,500.00 10 4,650.00 4,650.00 41,850.00 37,200.00 32,550.00 27,900.00 23,250.00
Fire Extinguisher 2 2,500.00 10 250.00 250.00 2,250.00 2,000.00 1,750.00 1,500.00 1,250.00
Flash Drive 2 600.00 1 600.00 - - - - - -
Calculator 2 1,000.00 1 1,000.00 - - - - - -
Total 136,946.00 15,839.60 13,539.60 121,106.40 107,566.80 94,027.20 80,487.60 66,948.00

Note 9 – Utilities Expense

Utilities Expense 2016 2017 2018 2019 2020

Water 19,200.00 19,776.00 20,764.80 22,218.34 24,217.99
Electricity 108,000.00 111,240.00 116,802.00 124,978.14 136,226.17
Phone and Internet 60,000.00 61,800.00 64,890.00 69,432.30 75,681.21
TOTAL 187,200.00 192,816.00 202,456.80 216,628.78 236,125.37
Breakdown
Administrative-15% 28,080.00 28,922.40 30,368.52 32,494.32 35,418.80
Service-85% 159,120.00 163,893.60 172,088.28 184,134.46 200,706.56
Grooming (45%) 71,604.00 73,752.12 77,439.73 82,860.51 90,317.95
Medication (48%) 76,377.60 78,668.93 82,602.37 88,384.54 96,339.15
Boarding (7%) 11,138.40 11,472.55 12,046.18 12,889.41 14,049.46

Note 10 – Other Income

Tails are Moving

Interest Income
ITEM 2016 2017 2018 2019 2020 End of 2020
Cash in Bank -Beg. - 153,000.00 258,060.00 365,221.20 474,525.62 586,016.14
Deposits 150,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Total Cash in Bank - Bank 150,000.00 253,000.00 358,060.00 465,221.20 574,525.62
Annual Interest 2% 2% 2% 2% 2%
Interest Income 3,000.00 5,060.00 7,161.20 9,304.42 11,490.51 36,016.14

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 Mobile Service Charge
Est. customers availing moble service 1738 1790 1880 2011 2192
Minimum charge 50.00 50.00 50.00 50.00 50.00
Mobile Service Charge 86,900.00 89,500.00 94,000.00 100,550.00 109,600.00

131
Note 11 – Rent Expense

RENT EXPENSE
Account Cost per month
2016 2017 2018 2019 2020
Rent Expense 50,000.00 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00

Breakdown
Service Department-85% 42,500.00 510,000.00 510,000.00 510,000.00 510,000.00 510,000.00
Admin. Department-15% 7,500.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00

Note 12 – Trade and Other Payables

Tails are Moving

Trade and Other Payables
Current Liabilities: 2016 2017 2018 2019 2020
SSS Payable 10,415.00 10,800.00 11,240.00 11,645.00 11,810.00
HDMF Payable 2,650.00 2,700.00 2,800.00 3,000.00 3,100.00
PhilHealth Payable 2,650.00 2,700.00 2,800.00 3,000.00 3,100.00
Withholding Tax Payable 13,121.90 14,227.27 15,469.47 16,786.38 18,231.01
Salaries Payable 193,830.90 203,198.63 212,893.43 222,990.84 233,720.44
VAT Payable 74,174.87 79,777.80 87,935.06 99,145.15 114,044.37
Income Tax Payable 136,140.74 182,434.01 249,546.32 348,712.82 488,163.70
TOTAL 432,983.41 495,837.71 582,684.29 705,280.19 872,169.51

Note 13 – Prepaid Expenses and Rent Schedule

Tails are Moving

Prepaid Expense and Rent Schedule
2016
Beg. Prepaid Expense and Rent 85,415.00
Prepaid Expense and Rent Used 85,415.00
End. Prepaid and Rent Expense -

(Increase)/Decrease 85,415.00

132
Note 14 – Supplies Schedule

Tails are Moving

Supplies Schedule
SUPPLIES BEGINNING
ACCOUNT
2016 2017 2018 2019 2020
Service Supplies 133,268.90 176,802.10 179,630.93 182,505.03 185,425.11
Admin. Supplies 2,888.00 3,465.60 3,521.05 3,577.39 3,634.62
Sanitary Supplies 5,586.00 2,234.40 2,270.15 2,306.47 2,343.38
TOTAL 141,742.90 182,502.10 185,422.13 188,388.89 191,403.11
PURCHASES FOR THE YEAR
Service Supplies 750,741.60 721,352.57 732,894.21 744,620.52 756,534.45
Admin. Supplies 14,440.00 14,139.65 14,365.88 14,595.74 14,829.27
Sanitary Supplies 16,758.00 20,467.11 20,794.58 21,127.30 21,465.33
TOTAL 781,939.60 755,959.33 768,054.68 780,343.55 792,829.05
YEAR SUPPLIES EXPENSE
Service Supplies Expense 707,208.40 718,523.73 730,020.11 741,700.44 753,567.64
Admin. Supplies Expense 13,862.40 14,084.20 14,309.55 14,538.50 14,771.11
Sanitary Supplies 20,109.60 20,431.35 20,758.26 21,090.39 21,427.83
TOTAL 741,180.40 753,039.29 765,087.91 777,329.32 789,766.59
SUPPLIES ENDING
Service Supplies 176,802.10 179,630.94 182,505.03 185,425.11 188,391.91
Admin. Supplies 3,465.60 3,521.05 3,577.39 3,634.63 3,692.78
Sanitary Supplies 2,234.40 2,270.16 2,306.48 2,343.38 2,380.88
TOTAL 182,502.10 185,422.14 188,388.90 191,403.12 194,465.57

133
Note 15 – VAT Payable

VAT Payable
2016 2017 2018 2019 2020
Output Tax 395,665.45 419,660.63 453,898.49 500,373.35 561,630.91
Input Tax 98,965.98 100,549.44 102,158.23 103,792.76 105,453.44
Excess 296,699.46 319,111.19 351,740.26 396,580.59 456,177.46
Divided by 4 quarters 4 4 4 4 4
Total VAT Payable 74,174.87 79,777.80 87,935.06 99,145.15 114,044.37

Breakdown of Output and Input Tax

2016 2017 2018 2019 2020
Service Fees 3,692,877.50 3,916,832.50 4,236,385.88 4,670,151.29 5,241,888.46
Output Tax 395,665.45 419,660.63 453,898.49 500,373.35 561,630.91
Net 3,297,212.05 3,497,171.88 3,782,487.39 4,169,777.94 4,680,257.55
Service Supplies
Purchases 884,010.50 898,154.67 912,525.14 927,125.54 941,959.55
Input Tax 94,715.41 96,230.86 97,770.55 99,334.88 100,924.24
Net 789,295.09 801,923.81 814,754.59 827,790.67 841,035.32
Administrative Supplies
Purchases 17,328.00 17,605.25 17,886.93 18,173.12 18,463.89
Input Tax 1,856.57 1,886.28 1,916.46 1,947.12 1,978.27
Net 15,471.43 15,718.97 15,970.47 16,226.00 16,485.62
Sanitary Supplies
Purchases 22,344.00 22,701.50 23,064.73 23,433.76 23,808.70
Input Tax 2,394.00 2,432.30 2,471.22 2,510.76 2,550.93
Net 19,950.00 20,269.20 20,593.51 20,923.00 21,257.77

134
 TAILS ARE MOVING

FINANCIAL STATEMENTS ANALYSIS

LIQUIDITY

Current Ratio
Year Current Assets Current Liabilities Ratio
1 812,830.97 432,983.41 1.88
2 769,992.66 495,837.71 1.55
3 907,742.03 582,684.29 1.56
4 1,312,629.21 705,280.19 1.86
5 2,087,195.19 872,169.51 2.39

SOLVENCY

Debt to Equity
Year Debt Equity Ratio
1 432,983.41 1,217,661.73 0.36
2 495,837.71 1,043,341.10 0.48
3 582,684.29 1,025,615.85 0.57
4 705,280.19 1,239,279.11 0.57
5 872,169.51 1,778,327.74 0.49

DEBT RATIO

Debt Ratio
Year Total Liabilities Total Assets Ratio
1 432,983.41 1,650,645.14 0.26
2 495,837.71 1,539,178.81 0.32
3 582,684.29 1,608,300.14 0.36
4 705,280.19 1,944,559.30 0.36
5 872,169.51 2,650,497.25 0.33

135
 EQUITY RATIO

Equity Ratio
Year Equity Total Assets Ratio
1 1,217,661.73 1,650,645.14 0.74
2 1,043,341.10 1,539,178.81 0.68
3 1,025,615.85 1,608,300.14 0.64
4 1,239,279.11 1,944,559.30 0.64
5 1,778,327.74 2,650,497.25 0.67

PAYBACK PERIOD

Payback Period
Year Annual Cash Return Accum. Cash Return
1 630,328.87 630,328.87
2 584,570.53 (45,758.34)
3 719,353.14 134,782.61
4 1,121,226.10 401,872.96
5 1,892,729.63 771,503.53

869,671.13 2.49
1+ =
584,570.53 years

RETURN ON ASSET

Return on Asset
Year Net Income Total Assets Ratio
1 317,661.73 1,650,645.14 19%
2 425,679.37 1,539,178.81 28%
3 582,274.76 1,608,300.14 36%
4 813,663.26 1,944,559.30 42%
5 1,139,048.63 2,650,497.25 43%

136
 RETURN ON INVESTMENT

Return on Investment
Year Net Income Initial Investment Ratio
1 317,661.73 1,500,000.00 21%
2 425,679.37 1,500,000.00 28%
3 582,274.76 1,500,000.00 39%
4 813,663.26 1,500,000.00 54%
5 1,139,048.63 1,500,000.00 76%

RETURN ON SERVICE INCOME

Return on Service Income

Year Net Income Service Income Ratio
1 317,661.73 3,692,877.50 9%
2 425,679.37 3,916,832.50 11%
3 582,274.76 4,236,385.88 14%
4 813,663.26 4,670,151.29 17%
5 1,139,048.63 5,241,888.46 22%

GROSS PROFIT RATIO

Gross Profit Ratio

Year Gross Profit Service Income Ratio
1 1,314,473.81 3,692,877.50 36%
2 1,479,077.88 3,916,832.50 38%
3 1,729,117.70 4,236,385.88 41%
4 2,086,842.97 4,670,151.29 45%
5 2,575,211.46 5,241,888.46 49%

137
 RETURN ON EQUITY

Return on Equity
Year Net Income Equity Ratio
1 317,661.73 1,217,661.73 26%
2 425,679.37 1,043,341.10 41%
3 582,274.76 1,025,615.85 57%
4 813,663.26 1,239,279.11 66%
5 1,139,048.63 1,778,327.74 64%

138