FINANCIAL ASPECT

1. INCOME STATEMENT

Mystic Food Co.

Projected Income Statement
For the Year Ended December 31

Notes 2022 2023 2024 2025

Sales 1 42,750 684,000 1,800,000 2,880,000
Less: Cost of Goods Sold 2 26,253 441,050 1,157,757 1,945,032
Gross Profit 16,497 242,950 642,243 934,968
Less: Operating Expense 3 10,732 180,230 546,152 767,523
Operating Income 5,766 62,719 96,091 167,444
Income Tax 1,441 15,680 24,023 41,861
Net Income 4,324 47,039 72,068 125,583

2. BALANCE SHEET
Mystic Food Co.
Projected Balance Sheet
As of December 31

2022 2023 2024 2025

ASSETS
Cash 1,871 59,918 92,041 159,862
Accounts Receivable 2,000 4,000
Inventories 4,395 6,126 16,080 27,014
Supplies 1,500 3,000 6,000 12,000
Equipments (net) 4 3,333 5,000

Total Assets 7,766 69,043 119,454 207,876

LIABILITIES & EQUITY

Accounts Payable 10,000 15,000
Income Tax Payable 1,441 15,680 24,023 41,861
Total Liabilities 1,441 15,680 34,023 56,861

Kyle Labongray, Capital 3,162 26,682 42,716 75,507

Rachel Sinto, Capital 3,162 26,682 42,716 75,507
6,324 53,364 85,431 151,015

Total Liabilities & Equity 7,766 69,043 119,454 207,876

3. CHANGES IN PARTNER’S EQUITY

ZAVOROUS COMPANY
PROJECTED STATEMENT PARTNER'S EQUITY
AS OF DECEMBER 31, 2022

Name of the Partner Sinto, Rachel DC. Labongray, Kyle F. Total

Beg: Investment 1,000 1,000 2,000
Share in Net Income 2,162 2,162 4,324
Total 3,162 3,162 6,324
Less: Withdrawals
Ending Capital 3,162 3,162 6,324

ZAVOROUS COMPANY
PROJECTED STATEMENT PARTNER'S EQUITY
AS OF DECEMBER 31, 2023

Name of the Partner Sinto, Rachel DC. Labongray, Kyle F. Total

Beg: Investment 3,162 3,162 6,324
Share in Net Income 23,520 23,520 47,039
Total 26,682 26,682 53,364
Less: Withdrawals
Ending Capital 26,682 26,682 53,364

ZAVOROUS COMPANY
PROJECTED STATEMENT PARTNER'S EQUITY
AS OF DECEMBER 31, 2024

Name of the Partner Sinto, Rachel DC. Labongray, Kyle F. Total

Beg: Investment 26,682 26,682 53,364
Share in Net Income 36,034 36,034 72,068
Total 62,716 62,716 125,431
Less: Withdrawals (20,000) (20,000) (40,000)
Ending Capital 42,716 42,716 85,431
 ZAVOROUS COMPANY
PROJECTED STATEMENT PARTNER'S EQUITY
AS OF DECEMBER 31, 2025

Name of the Partner Sinto, Rachel DC. Labongray, Kyle F. Total

Beg: Investment 42,716 42,716 85,431
Share in Net Income 62,792 62,792 125,583
Total 105,507 105,507 211,015
Less: Withdrawals (30,000) (30,000) (60,000)
Ending Capital 75,507 75,507 151,015

4. CASH FLOW STATEMENT

ZAVOROUS COMPANY
PROJECTED CASH FLOW STATEMENT
AS AT DECEMBER 31,

2022 2023 2024 2025

OPERATING ACTIVITIES
Net Income 4,324 47,039 72,068 125,583
Add: Non-cash transactions
Depreciation Expense - - 1,667 3,333

Add (deduct) change in Current assets & liabilities

Accounts Receivable (2,000) (2,000)
Inventories (4,395) (1,731) (9,954) (10,934)
Supplies (1,500) (1,500) (3,000) (6,000)
Accounts Payable - - 10,000 5,000
Income Tax Payable 1,441 14,238 8,343 17,838
Cash Provided by Operating Activities (130) 58,047 77,123 132,821

INVESTING ACTIVITIES
Acquisition of Equipments - - (5,000) (5,000)
Cash Used by Financing Activities - - (5,000) (5,000)

FINANCING ACTIVITIES
Initial Investment 2,000
Withdrawal (40,000) (60,000)
Cash Provided/Used by Financing Activities 2,000 - (40,000) (60,000)

Change in Cash 1,871 58,047 32,123 67,821

Cash, beginning 1,871 59,918 92,041
CASH, end 1,871 59,918 92,041 159,862
5. NOTES TO FINANCIAL STATEMENTS

Note 1 – Sales

2022 2023 2024 2025

Target
Daily Sales (units) 5 20 50 80
Monthly Sales 150 600 1,500 2,400
Annual Sales 1,800 7,200 18,000 28,800
Selling Price ₱ 95.00 ₱ 95.00 ₱ 100.00 ₱ 100.00
SALES 171,000 684,000 1,800,000 2,880,000
2022 Sales (3 months only) 42,750

By 2024, selling price will increase to compensate the effect of inflation.

Note 2 – Cost of Goods Sold

Cost Produce Unit Cost

Raw Materials cost per unit 1,465 26 56.346
Overhead cost per unit 2.00
Total cost per unit 58.346

Units Sold 450 7,200 18,000 28,800

Unit Cost 58.34 61.26 64.32 67.54
Annual Cost of Goods Sold 26,253 441,050 1,157,757 1,945,032

Unit cost is estimated to increase by 5% annually due to inflation.

Mark-up price is 62.84% at the start of the business.

Note 3 – Operating Expense

2022 2023 2024 2025

Freebies 4,800.00 19,440.00 19,440.00 19,440.00
Marketing Exp 15,000.00 20,000.00 30,000.00
Rent Expense 60,000 60,000
Salaries Expense - 120,000.00 384,000.00 566,000.00
Tools 864.00 950.40 1,045.44 1,149.98
Depreciation 1,666.67 3,333.33
Utilities Expense 4,140.00 18,000.00 24,000.00 30,000.00
Permit & Licenses 927.50 6,840.00 36,000.00 57,600.00
10,731.50 180,230.40 546,152.11 767,523.31
 Breakdown of Salaries Expense:

Year 2023
Kyle 2 2,500.00 5,000.00 60,000.00
Rachel 2 2,500.00 5,000.00 60,000.00
120,000.00
Year 2024
Kyle 4 4,000.00 16,000.00 192,000.00
Rachel 4 4,000.00 16,000.00 192,000.00
Staff 1 12,000.00 156,000.00
384,000.00

Year 2025
Kyle 4 4,000.00 16,000.00 192,000.00
Rachel 4 4,000.00 16,000.00 192,000.00
Staff 1 14,000.00 182,000.00
566,000.00

Note 4 – Equipment

Cost Useful Life Depreciation

Kitchenwares
Year 2024 5,000.00 3 1,666.67
Addition 5,000.00 3 1,666.67
Year 2025 10,000.00 3,333.33

FINANCIAL ANALYSIS