Republic of the Philippines

CENTRAL LUZON STATE UNIVERSITY

College of Engineering

DEPARTMENT OF CIVIL ENGINEERING

MARKETING AND
FINANCIAL PLAN

AGUSTIN, Jackson S.
BAGUIO, Keanu Lee S.
BANGHON, Rica Mae A.
LAMINATO, Jay Mark Q.
NOVESTERAS, Ken Ariane V.
 TABLE OF CONTENTS

Organizational Chart …………………………………………………………………………….03

A. TOTAL COST

 Estimating the Total Cost of Establishing the Business

Dept Equity Total
Pre – Operating
- ₱35,760.00 ₱35,760.00
Expenses
Fixed Investment ₱33,703,172.00 ₱4,982,120.00 ₱38,685,292.00

Working Capital ₱37,086,913.00 ₱4,982,120.00 ₱42,069,033.00

Total Project Cost ₱70,790,085.00 ₱10,000,000.00 ₱80,790,085.00

 Debt Financing

Financing Charges

Principal: Mode of Payment: Cash

₱80,000,000.00 Term of Loan: 10
Outstanding
Year Principal Total Payment
Balance
1 ₱80,000,000.00 ₱8,000,000.00 ₱72,000,000.00

2 ₱80,000,000.00 ₱8,000,000.00 ₱64,000,000.00

3 ₱80,000,000.00 ₱8,000,000.00 ₱56,000,000.00

4 ₱80,000,000.00 ₱8,000,000.00 ₱48,000,000.00

5 ₱80,000,000.00 ₱8,000,000.00 ₱40,000,000.00

6 ₱80,000,000.00 ₱8,000,000.00 ₱32,000,000.00

7 ₱80,000,000.00 ₱8,000,000.00 ₱24,000,000.00

8 ₱80,000,000.00 ₱8,000,000.00 ₱16,000,000.00

9 ₱80,000,000.00 ₱8,000,000.00 ₱8,000,000.00

10 ₱80,000,000.00 ₱8,000,000.00 0
  Financers
Percentage Capital
Name Address
Contribution Contribution
Agustin, Jackson S. Rizal, Nueva Ecija 20% ₱2,000,000.00
Llanera, Nueva
Baguio, Keanu Lee S. 20% ₱2,000,000.00
Ecija
Banghon, Rica Mae A. Rizal, Nueva Ecija 20% ₱2,000,000.00
Laminato, Jay Mark Q. Rizal, Nueva Ecija 20% ₱2,000,000.00
Novesteras, Ken Ariane V. Ramos, Tarlac 20% ₱2,000,000.00

Owner’s Equity ₱10,000,000.00

B. CASH FLOW

Projected Cash Flow

Cash Inflows
Pre-Operation Year 1 Year 2 Year 3
Loans ₱80,000,000.00 - - -
Proceeds
Owner’s ₱10,000,000.00 - - -
Equity
Cash Sales - ₱1,171,500,000.00 ₱1,190,250,000.00 ₱1,176,000,000.
00
Total Cash ₱90,000,000.00 ₱1,171,500,000.00 ₱1,190,250,000.00 ₱1,176,000,000.00
Inflows

Cash Outflows
Pre-Operating ₱35,760.00 ₱13,126.00 ₱13,126.00 ₱13,126.00
Expenses
Fixed
Investment and ₱38,685,292.00 ₱2,267,648.10 ₱2,267,648.10 ₱2,267,648.10
Depreciation

Raw Material ₱30,850,624.20 ₱370,207,490.40 ₱370,207,490.40 ₱370,207,490.40

Purchases

Labor and - ₱10,138,428.00 ₱10,138,428.00 ₱10,138,428.00

Wages
 Utilities ₱62,000.00 ₱744,000.00 ₱744,000.00 ₱744,000.00
Total Cash ₱69,633,676.20 ₱383,370,692.50 ₱383,370,692.50 ₱383,370,692.50
Outflows

Net Cash Flow ₱20,366,323.80 ₱788,129,307.50 ₱806,879,307.50 ₱792,629,307.50

Add
Beginning ₱42,069,033.00 ₱70,435,356.80 ₱866,564,664.30 ₱1,681,443,972.
Cash Balance 00
Less Interest
and Principal ₱8,000,000.00 ₱8,000,000.00 ₱8,000,000.00 ₱8,000,000.00
Payments
Ending Cash
Balance ₱70,435,356.80 ₱866,564,664.30 ₱1,681,443,972. ₱2,482,073,280.
00 00

Pre-Operating Expenses
● Permits, Licenses & Clearances’

PERMITS & LICENSES AGENCY INITIAL ANNUAL

EXPENSES EXPENSES
 Registration of Business Name SEC ₱5,500.00 -
(Partnership/Corporation)
 License to Operate/ Mayor’s LGU ₱1,200.00 ₱1,200.00
Permit
 TIN (Company and Workers) BIR ₱575.00 -
 SSS Registration (Company and SSS ₱3,200.00 ₱3,200.00
 Employees)
 Business Registration DOLE ₱7,630.00 ₱1,526.00
(Companies with 5 or more
employees)
 PHILHEALTH/PAG-IBIG HDMF ₱3,600.00 ₱3,600.00
FUND
 Environmental Compliance DENR ₱5,055.00 -
Certificate
 Food, chemicals, and health- BFAD - -
related business
 Constructors License PCAB ₱3,000.00 ₱3,000.00
 Nursery accreditation of plants DA-BPI - -
and products
 Trademark and Patent DOST- ₱6,000.00 ₱600.00
Registration IPO
TOTAL ₱35,760.00 ₱13,126.00
Cost Estimates
 Fixed Investment and Depreciation Schedule

Life Annual
Fixed Investment Quantity Price (PHP) Total Price Span Depreciation
(PHP) (Years) (PHP)

Land 5000 m2 ₱850.00 ₱4,250,000.00 - -

Building 900 m 2
₱32,741.00 ₱29,466,900.00 15 ₱1,768,014.00
Assembly 1 ₱2,000,000.00 ₱2,000,000.00 10 ₱180,000.00
Automation Machine
Computer 10 ₱49,900.00 ₱499,000.00 5 ₱89,820.00
Workbench 20 ₱890.00 ₱17,800.00 5 ₱3,204.00
Electric Drill and 2 ₱4,500.00 ₱9,000.00 6 ₱1,350.00
Drill Bits
Soldering Iron 2 ₱11,100.00 ₱22,200.00 6 ₱3,300.00
Wire Stripper 5 ₱1,500.00 ₱7,500.00 3 ₱2,250.00
Pliers 10 ₱260.00 ₱2,600.00 3 ₱780.00
Forklift truck 1 ₱610,750.00 ₱610,750.00 10 ₱54,967.50
Delivery Truck 1 ₱1,790,000.00 ₱1,790,000.00 10 ₱161,100.00
Tweezers 10 ₱316.00 ₱3,160.00 3 ₱948.00
Allen Wrench Set 3 ₱662.00 ₱1986.00 3 ₱595.80
Screwdrivers Set 4 ₱1,099.00 ₱4396.00 3 ₱1318.80
TOTAL ₱38,685,292.00 ₱2,267,648.10

 Depreciation was computed with 10% salvage value using the formula

Actual Value−SalvageValue
Depreciation =
Life span
Raw Materials

Raw Total Price (PHP) Annual

Materials Quantity Unit Cost (Monthly Expenses) Expenses

Computer ₱7,245.55/chip
processor 660 chips (Snapdragon 865) ₱4,782,063.00 ₱57,384,756.00
₱33,385.27/headset
Lenses 660 headsets (Raptor AR ₱22,034,278.20 ₱264,411,338.40
headset)
Optics and 660 optics and
 display display module ₱ 4,458.80 ₱2,942,808.00 ₱35,313,696.00
module
Hard hat 660 hard hats ₱1,653.75 ₱1,091,475.00 ₱13,097,700.00

TOTAL ₱30,850,624.20 ₱370,207,490.40

Administrative Expenses
● Salaries and Wage

Number of Salary/Month Each Annual Salary (PHP)

Employees Person (PHP)

Direct Labor
Technician 3 ₱14,547.00 ₱523,692.00
Machine Operator 1 ₱13,231.00 ₱158,772.00
Software Engineer 1 ₱39,623.00 ₱475,476.00
System Design Engineer 1 ₱40,000.00 ₱480,000.00
Electronic Engineer 1 ₱37,000.00 ₱444,000.00
Electrical Engineer 1 ₱39,826.00 ₱477,912.00
Security Personnel 4 ₱14,174.00 ₱510,264.00
Quality Control Inspector 3 ₱16,358.00 ₱680,352.00
Safety officer 2 ₱15,500.00 ₱372,000.00
ARchitectus Vision Headset Maker 8 ₱15,000.00 ₱1,440,000.00
Janitor 3 ₱7,523.00 ₱270,828.00
Driver 2 ₱12,000.00 ₱288,000.00
Medical Staff 3 ₱18,286.00 ₱658,296.00
Subtotal 33 ₱283,068.00 ₱6,779,592.00
Administrative Cost
Office Manager 1 ₱41,000.00 ₱492,000.00
Accountant 1 ₱34,704.00 ₱416,448.00
Company Lawyer 1 ₱63,656.00 ₱763,872.00
Product Manager 1 ₱38,685.00 ₱464,220.00
Purchasing Manager 1 ₱35,000.00 ₱420,000.00
Human Resource Manager 1 ₱43,279.00 ₱519,348.00
Supervisor 1 ₱23,579.00 ₱282,948.00
Subtotal 7 ₱279,903.00 ₱3,358,836.00
TOTAL LABOR AND WAGES 40 ₱562,971.00 ₱10,138,428.00

Utilities

Monthly Expenses Annual Expenses

 Electricity ₱40,000.00 ₱480,000.00
Water ₱12,000.00 ₱144,000.00
Communication ₱10,000.00 ₱120,000.00
TOTAL ₱62,000.00 ₱744,000.00

Projected Balance Sheet

Assets Pre- Year 1 Year 2 Year 3 Year 4

operation
Cash ₱42,069,033.00 - - - -
Account - - - - -
Receivables
Raw Material
Inventory ₱30,850,624.20 ₱370,207,490.40 ₱370,207,490.40 ₱370,207,490.40 ₱370,207,490.40
Finished Goods - ₱383,370,692.50 ₱383,370,692.50 ₱383,370,692.50 -
Inventory
Supplies and - - - - -
Spare Inventory
Total Current ₱72,919,657.20
Asset
Property, Plant -
Equipment
Land ₱4,250,000.00
Building ₱29,466,900.00
Assembly ₱2,000,000.00
Automation
MachineMixer
ComputerCutter ₱499,000.00
WorkbenchStove ₱17,800.00
Electric Drill and ₱9,000.00
Drill
BitsDelivery
Trucks
Soldering ₱22,200.00
IronLaboratory
Gown
Wire Stripper ₱7,500.00
Pliers ₱2,600.00
Forklift truck ₱610,750.00
Delivery Truck ₱1,790,000.00
 Tweezers ₱3,160.00
Allen Wrench ₱1986.00
Set
Screwdrivers Set ₱4396.00
Less: ₱2,267,648.10 ₱2,267,648.10 ₱2,267,648.10 ₱2,267,648.10 ₱2,267,648.10
Accumulated
Depreciation
Net Property
and Equipment
Pre-operating ₱35,760.00
Expenses
Less: -
Amortization of
Pre-operating
Expenses
Net Pre- ₱35,760.00
operating
Expenses
Liabilities and
Owner’s Equity
Accounts ₱8,000,000.00
Payable
Loans Payable -
Long Term Loan ₱80,000,000.00
Total Liabilities ₱88,000,000.00
Owner’s Equity ₱10,000,000.00
Retained
Earnings
Total Owner’s ₱10,000,000.00
Equity
Total Liabilities ₱98,000,000.00
and Owner’s
Equity
 C. PRODUCTION SCHEDULE/MATERIAL PURCHASES SCHEDULE

YEAR QUARTER
1 1 2 3 4
(January-March) (April-June) (July-September) (Oct. – Dec.)
Planned No. of Products 1,980 1,980 1,980 1,980
No. of Produced 1,970 1,930 1,980 1,980
Products
Starting Inventory ---- 1,930 + 70 1,980 + 20 1,980 + 100
(Ending Inventory (Ending (Ending
of Quarter 1) Inventory of Inventory of
Quarter 2) Quarter 3)
No. of sold products 1,900 1980 1,900 2,030
Ending Inventory 70 20 100 50
Total no. of produced 7,860
product (Annually)
Total no. of sold 7,810
products (Annually)

YEAR QUARTER
2 1 2 3 4
Planned No. of Products 1,980 1,980 1,980 1,980
No. of Produced 1,960 1,980 1,975 1,970
Products
Starting Inventory 1,960 + 50 1,980 + 10 1,975 + 20 ----
(Ending (Ending (Ending (Ending
Inventory of Inventory of Inventory of Inventory of
Year 1) Quarter 1, Year Quarter 2, Year Quarter 3,
2) 2) Year 2)
No. of sold products 2,000 1,970 1,995 1,970
Ending Inventory 10 20 0 0
Total no. of produced 7,885
product (Annually)
Total no. of sold 7, 935
products (Annually)

YEAR QUARTER
 3 1 2 3 4
Planned No. of Products 1,980 1,980 1,980 1,980
No. of Produced 1,980 1,930 1,950 1,980
Products
Starting Inventory ---- 1,930 +30 ---- ----
(Ending
Inventory of
Quarter 1, Year
3)
No. of sold products 1,950 1,960 1,950 1,980
Ending Inventory 30 0 0 0
Total no. of produced 7,840
product (Annually)
Total no. of sold 7,840
products (Annually)

D. COST OF PRODUCING GOODS

DAILY PRODUCTION (NO. OF ARchitectus Vision Headset = 30)

RAW MATERIALS UNIT COST QUANTITY TOTAL COST
Computer processor ₱ 7,245.55/chip 30 chips ₱ 217,366.5
(Snapdragon 865)
Lenses ₱ 33,385.27/headset 30 headsets ₱ 1,001,558.1
(Raptor AR headset)
Optics and display module ₱ 4,458.80 30 optics and ₱ 133,764
display module
Hard hat ₱ 1,653.75 30 hard hats ₱ 49,612.5
Total ₱ 46,743.37 ₱ 1,402,301.1

Laborer Number of Salary/Month Annual Salary

Employees Each Person (Php) (Php)
Direct Labor
Technician 3 ₱14,547.00 ₱523,692.00
Machine Operator 1 ₱13,231.00 ₱158,772.00
Software Engineer 1 ₱39,623.00 ₱475,476.00
System Design Engineer 1 ₱40,000.00 ₱480,000.00
 Electronic Engineer 1 ₱37,000.00 ₱444,000.00
Electrical Engineer 1 ₱39,826.00 ₱477,912.00
Security Personnel 4 ₱14,174.00 ₱510,264.00
Quality Control Inspector 3 ₱16,358.00 ₱680,352.00
Safety Officer 2 ₱15,500.00 ₱372,000.00
ARchitectus Vision Headset 8 ₱15,000.00 ₱1,440,000.00
Maker
Janitor 3 ₱7,523.00 ₱270,828.00
Driver 2 ₱12,000.00 ₱576,000.00
Medical staffs 3 ₱18,286.00 ₱658,296.00
Subtotal 33 ₱283,068.00 ₱6,779,592.00
Administrative Cost
Office Manager 1 ₱41,000.00 ₱492,000.00
Accountant 1 ₱34,704.00 ₱416,448.00
Company Lawyer 1 ₱63,656.00 ₱763,872.00
Product Manager 1 ₱38,685.00 ₱464,220.00
Purchasing Manager 1 ₱35,000.00 ₱420,000.00
Human Resource Manager 1 ₱43,279.00 ₱519,348.00
Supervisor 1 ₱23,579.00 ₱282,948.00
Subtotal 7 ₱279,903.00 ₱3,358,836.00
Total Labor and Wages 42 ₱562,971.00 ₱10,138,428.00

Utilities Monthly Expenses Annual Expenses

Electricity ₱40,000.00 ₱480,000.00
Water ₱12,000.00 ₱144,000.00
communication ₱10,000.00 ₱120,000.00
Total ₱62,000.00 ₱744,000.00

E. INCOME STATEMENT

PROJECTED INCOME STATEMENT

 YEAR 1 YEAR 2 YEAR 3
TOTAL SALES ₱1,171,500,000.00 ₱1,190,250,000.00 ₱1,176,000,000.00
Less: Cost of Service Sold ₱383,370,692.50 ₱383,370,692.50 ₱383,370,692.50
Gross Profit from Sales 788,129,307.50 ₱806,879,307.50 ₱792,629,307.50
Less: Administrative ₱3,358,836.00 ₱3,358,836.00 ₱3,358,836.00
Expenses
Net Operating Profit ₱770,100,221.00 ₱770,100,221.00 ₱770,100,221.00
Less: Interest Charges ₱8,000,000.00 ₱8,000,000.00 ₱8,000,000.00
Net Income Before Taxes ₱778,100,221.00 ₱778,100,221.00 ₱778,100,221.00

Sales Expenses
YEAR 1 YEAR 2 YEAR 3
Advertising/Promotion
Packaging
Total Selling Expenses

F. FINANCIAL RATIO