Chapter lV

FINANCIAL ASPECT

Financial analysis is one of the most important aspects of the micro

project. This includes funding requirements, source of funding and the building

blocks of financial statements namely; cash flow statement, income statement,

and balance sheet.

A. Funding Requirement

The funding requirement in carrot production has a total amount of

Php6,707.00 to be able to finance the one cycle of the micro project during its

operation. The amount needed was used for purchasing the needed tools,

equipment, and other things that related to the micro project.

A.1 Record of Expenses

Table 7. Capital Requirements
Item Item Description Quantity Units Unit Cost Total Cost
No. (Php) (Php)
1 Crop and Crop
Supplies
carrot seeds 5 packs 80.00 400.00
2. Materials
Molasses 3 Liter 19.00 57.00
Sprinkler 2 Pcs 120.00 240.00
Wood shave 1 Sack 50.00 50.00
Rice straw 1 Sack 50.00 50.00
Bolo 2 Kg 100.00 200.00
Ammonium sulfate 1 Bag 1,440.00 1,440.00
3 Others
Water Bill 2 Months 50.00 100.00
Labor Cost 5 Days 400.00 2,000.00
Transportation 1 week 20.00 170.00
Land Rent 2 Months 1,000.00 2,000.00
Total Expenses Php6,707.00

B. Source of Financing
 The source of funding of this micro project came from the savings of the

owner and its family. This was financed by the owner’s equity of Php6,707.00

during the operation.

C. Financial Statement

Financial statements were prepared to determine the performance,

sustainability and worthiness of the micro-project. It includes income

statement, cash flow and balanced sheet.

C.1 Income Statement

Table 8. Income statement of Carrot Production

Revenue
Sales Php30,500.00
Total Sales Php30,500.00
Expenses
Crop And Crop 400.00
Supplies
Materials 2,067.00
Others 4,270.00
Total Expenses Php6,707.00
Net Profit Php23,793.00
Table 9. Cash Flow for Carrot Production
Carrot Production
Cash Flow Statement
For the Month of November 2022 Ended January 2023
CASH INFLOWS
Sales Php30,500.00
Total Cash Inflows Php30,500.00
CASH OUTFLOWS
Crop and crop Php400.00
Supplies
Materials Php2,067.00
Others Php4,270.00
Total Cash Outflow Php6,707.00
Net Cashflow Php23,793.00
Opening Balance 0.00
Ending Balance Php23,793.00

Table7. Shows the cash flow statement of carrot production. It also showed

the total ending balance during of the one cycle of operation which was

Php23,793.00 came from the owner’s equity of Php6,707.00 and sales of carrot

Php35,500.00. It also shows that the project can sustain its operation.

C.1 Balanced Sheet

Table 10. Actual Balance Sheet of Carrot Production.

Carrot Production
Balance Sheet Statement
For the Month of November 2022 Ended January 2022
Assets
Cash Php30,500.00
Total Assets Php30,500.00
Liabilities 0.00
Total Liabilities Php0.00
Owners’ Equity
Capital Php6,707.00
Net Income Php23,793.00
Total Liabilities and Owners’ Php30,500.00
Equity
 Table 8. Shows the financial status of the microproject. The total assets
received by the owner is Php30,500.00.

D. Profitable Analysis

The profitability ratios such as Return on Investment (ROI), Net Profit

Margin (NPM) and Benefit Cost Ratio (BCR) was used to assess the profitability

of the microproject. This section will show the detailed computation and

interpretation of profitability ratios of the micro project.