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Basic assumptions:
Estimated life - years 5
Salvage value - percent of cost 20%
Net book values - end of year 721,560 584,120 446,680 309,240 171,800
Net book values - end of year 14,104 11,008 7,912 4,816 1,720
ACCUMULATED DEPRECIATION
PROPERTY & EQUIPMENT
DEPRECIATION SCHEDULE
Basic assumptions:
Estimated life - years 5
Salvage value - percent of cost 10%
Net book values - end of year 41,000 32,000 23,000 14,000 5,000
Fabric Equipment
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 150,000 150,000 150,000 150,000 150,000
Salvage value - 10% (15,000)
Depreciable value 135,000
Annual depreciation/accumulated 27,000 54,000 81,000 108,000 135,000
Net book values - end of year 123,000 96,000 69,000 42,000 15,000
Desktop
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 8,000 8,000 8,000 8,000 8,000
Salvage value - 10% (800)
Depreciable value 7,200
Annual depreciation/accumulated 1,440 2,880 4,320 5,760 7,200
Net book values - end of year 6,560 5,120 3,680 2,240 800
CCTV
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 15,000 15,000 15,000 15,000 15,000
Salvage value - 10% (1,500)
Depreciable value 13,500
Annual depreciation/accumulated 2,700 5,400 8,100 10,800 13,500
Net book values - end of year 12,300 9,600 6,900 4,200 1,500
Generator
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 17,000 17,000 17,000 17,000 17,000
Salvage value - 10% (1,700)
Depreciable value 15,300
Annual depreciation/accumulated 3,060 6,120 9,180 12,240 15,300
Net book values - end of year 13,940 10,880 7,820 4,760 1,700
Aircon
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 14,000 14,000 14,000 14,000 14,000
Salvage value - 10% (1,400)
Depreciable value 12,600
Annual depreciation/accumulated 2,520 5,040 7,560 10,080 12,600
Net book values - end of year 11,480 8,960 6,440 3,920 1,400
Printing Press
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 25,000 25,000 25,000 25,000 25,000
Salvage value - 10% (2,500)
Depreciable value 22,500
Annual depreciation/accumulated 4,500 9,000 13,500 18,000 22,500
Net book values - end of year 20,500 16,000 11,500 7,000 2,500
Net book values - end of year 2,870 2,240 1,610 980 350
Net book values - end of year 1,230 960 690 420 150
Digital Printer
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 25,000 25,000 25,000 25,000 25,000
Salvage value - 10% (2,500)
Depreciable value 22,500
Annual depreciation/accumulated 4,500 9,000 13,500 18,000 22,500
Net book values - end of year 20,500 16,000 11,500 7,000 2,500
Truck
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 550,000 550,000 550,000 550,000 550,000
Salvage value - 20% (110,000)
Depreciable value 440,000
Annual depreciation/accumulated 88,000 176,000 264,000 352,000 440,000
Net book values - end of year 462,000 374,000 286,000 198,000 110,000
Net book values - end of year 2,870 2,240 1,610 980 350
Chair
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 1,000 1,000 1,000 1,000 1,000
Salvage value - 10% (100)
Depreciable value 900
Annual depreciation/accumulated 180 360 540 720 900
Net book values - end of year 820 640 460 280 100
Table
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 3,000 3,000 3,000 3,000 3,000
Salvage value - 10% (300)
Depreciable value 2,700
Annual depreciation/accumulated 540 1,080 1,620 2,160 2,700
Net book values - end of year 2,460 1,920 1,380 840 300
Bulb
Year 1 Year 2 Year 3 Year 4 Year 5
Original cost 3,000 3,000 3,000 3,000 3,000
Salvage value - 10% (300)
Depreciable value 2,700
Annual depreciation/accumulated 540 1,080 1,620 2,160 2,700
Net book values - end of year 2,460 1,920 1,380 840 300
Total Accumulated depreciation 145,510 291020 436,530 582,040 727,550
TOTAL PROJECT COST AND CAPITAL REQUIREMENTS
Business Name: Customized Classy Tote Bags
Site Address: Sm Southmall Las Pinas
SOURCES OF FINANCING
Amount Total
Partners' contributed capital
Quinto, Capital 240,000
Arciaga, Capital 240,000
Macias, Capital 240,000
Magana, Capital 240,000
Rioveros, Capital 240,000
1,200,000
Financial Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Sales/Revenues Based on sales/revenues forecast, 10% increase/year
Cost of Sales/Services Based on Schedule of Cost of Sales/Services
Gross Profit Sales/Revenues - Cost of sales/services
Operating Expenses:
Salary Based on Manpower schedule, 5% increase per year
Employee Benefits 8% of salary expense
Repairs and Maintenance Average of P12,000 per year - 5% increase per year
Financing expenses Based on Loan amortization schedule
Depreciation expense Based on Depreciation schedule
Selling Supplies Estimated at .50% of sales/revenues
Office Supplies Estimated at P5,000 per year - 5% increase per year
Utilities Estimated at P50,000 per year, 5% increase annually
Rent Based on leasing schedule
Pre-operating exp. Part of project cost
Taxes / Licenses Estimated at 2% of sales/revenues
Miscellaneous Estimated at P30,000 per year - 5% increase annually
Total Operating Expenses
Customized Classy Tote Bags
Statement of Financial Position
For the years ended, December 31, 2022-2026
Note 1 j
Net Sales
2022 2023 2024 2025 2026 Yearly increase
Gross sales 2,000,000 2,200,000 2,420,000 2,662,000 2,928,200 10%
Sales return and allowances (18,000) (19,800) (21,780) (23,958) (26,354)
Sales discounts (26,500) (29,150) (32,065) (35,272) (38,799)
Net Sales 1,955,500 2,151,050 2,366,155 2,602,771 2,863,048 10%
Note 2
Cost of Goods Sold
2022 2023 2024 2025 2026 Yearly increase
Beg. Raw Materials 74,500 300,000 100,000 150,000 200,000
Net Purchases 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Raw Materials Available for use 1,074,500 1,300,000 1,100,000 1,150,000 1,200,000
Ending raw materials (300,000) (100,000) (150,000) (200,000) (300,000)
Raw Materials used 774,500 1,200,000 950,000 950,000 900,000
Direct Labor 100,000 105,000 110,250 115,763 121,551
Factory overhead 100,000 120,000 126,000 132,300 143,675
Total manufacturing cost 974,500 1,425,000 1,186,250 1,198,063 1,165,226
Beginning goods in process 0 300,500 328,330 452,000 542,654
Total cost of goods in process 974,500 1,725,500 1,514,580 1,650,063 1,707,880
Ending goods in process (300,500) (328,330) (452,000) (542,654) (486,700)
Cost of goods manufactured 674,000 1,397,170 1,062,580 1,107,409 1,221,180
Beginning finished goods inventory - 100,000 800,000 1,100,000 1,300,000
Cost of goods available for sale 674,000 1,497,170 1,862,580 2,207,409 2,521,180
Ending finished goods inventory (100,000) (800,000) (1,100,000) (1,300,000) (1,500,000)
Cost of goods sold 574,000 697,170 762,580 907,409 1,021,180
Note 3
General and Administrative Expenses
2022 2023 2024 2025 2026 Yearly increase
Repairs and Maintenance 12,000 12,600 13,230 13,892 14,586 5%
Depreciation expenses 57,750 57,750 57,750 57,750 57,750
Office Supplies Expense 6,989 7,338 7,705 8,091 8,495 5%
Taxes / Licenses 19,555 21,511 23,662 26,028 28,630 1% of revenues
Pre-operating expenses 30,000 0 0 0 0 Part of project cost
Total 126,294 99,199 102,347 105,760 109,462
Cost of Goods Sold
2022 2023 2024 2025
Beg. Raw Materials 74,500 300,000 100,000 150,000
Net Purchases 1,000,000 1,000,000 1,000,000 1,000,000
Raw Materials Available for use 1,074,500 1,300,000 1,100,000 1,150,000
Ending raw materials (300,000) (100,000) (150,000) (200,000)
Raw Materials used 774,500 1,200,000 950,000 950,000
Direct Labor 100,000 105,000 110,250 115,763
Factory overhead 100,000 120,000 126,000 132,300
Total manufacturing cost 974,500 1,425,000 1,186,250 1,198,063
Beginning goods in process 0 300,500 328,330 452,000
Total cost of goods in process 974,500 1,725,500 1,514,580 1,650,063
Ending goods in process (300,500) (328,330) (452,000) (542,654)
Cost of goods manufactured 674,000 1,397,170 1,062,580 1,107,409
Beginning finished goods inventory 0 100,000 800,000 1,100,000
Cost of goods available for sale 674,000 1,497,170 1,862,580 2,207,409
Ending finished goods inventory (100,000) (800,000) (1,100,000) (1,300,000)
Cost of goods sold 574,000 697,170 762,580 907,409
2026
200,000
1,000,000
1,200,000
(300,000)
900,000
121,551
143,675
1,165,226
542,654
1,707,880
(486,700)
1,221,180
1,300,000
2,521,180
(1,500,000)
1,021,180
Revenue Forecast
Yearly Increase
Year 1 Year 2 Year 3 Year 4 Year 5
Revenues 2,000,000 10%
Cost of Services
For Service Business
The total Operating expenses shall be broken down into Direct Cost of Services (DCOS) and General and Administrative Expenses.
The DCOS should indicate only those directly incurred or related to the gross revenue from rendition of services.
Note 3
Total Operating expenses Year 1
Direct General and
Total Cost of Services Administrative Yearly Increase
Salary 5%
Employee Benefits 5%
Utilities 5%
Depreciation expense Depreciation schedule
Selling Supplies .5% of revenues
Rent Leasing schedule
Repairs and Maintenance 5%
Financing expenses Loan Amortization
Office Supplies 5%
Taxes / Licenses 2% of revenues
Pre-operating expenses Part of project cost
Miscellaneous 5%
Totals - - -
TOTAL 7 702,000