IE103- Technopreneurship

Financial Plan
_______________________
NAMES:

● Abadilla, Janielle Mari S.

● Achacon, Kyle Eldrick P.
● Cinco, Cedrick D.
● Dela Cerna, Jhyme Lou O.
● Cueto, Hans Steven R.
 IE103- Financial Plan

I. MAJOR PORTIONS
A. Major Assumptions
● The company’s major assumptions that are followed and under take are Quality
Control Costs, Dividend Policy, Labor and Management Compensation,
Inventory Costing, Operating Account, Selling Price, Production Volume, Tax
rates, and Price Ceiling.
● The company chose these major assumption as likely that the business involves
in the creation of gadgets, and considering that the techno pen and paper is a
digital device the need for Quality checking is a must. Moreover, since the
company is under the means of investments and such; a dividend policy will be
able to help in term of the sharing assets of investments. Labor and Management
Compensation is also needed to help in the manufacturing process and labor the
employees has done. Inventory Costing, is also important this is also to take
account on the inventory of the company.
● Moreover, Operating account is important likely that the product the company is
selling is electronic or a gadget. The Selling price is also important to take notice
likely that it involves in the making process of the product. Product Volume,
should also be taken notice likely this involves the amount of product being made
and such. Tax rates, are also needed to be taken care of likely government
documents and legal means are needed to be followed. Lastly, is the Price
Ceiling, considering changes of price are done on the materials in creating the
product, it must also be taken notice.

B. Total Project Costs

The total project costs for the business is Php 4,220,000.00 with a remaining balance of
Php 780,000.00. This is the computed total project costs that is based from the financial
analysis below. Alternative sources of financing is not included in the total project
costs as it would only be in use if the primary source of financing is insufficient.

C. Initial Working Capital Requirements

The initial working capital requirement is worth around (insert amount). This includes the
rent for place, renovation of place, machines and equipment, business documents and
details, raw materials, quality control costing, labor costing, and software installation and
processing.

D. Alternative Source of Financing

The alternate source of finances for the project would be loans depending on the
situation. If the circumstances in which the capital needed for the project is not enough,
the company would take a loan.
 IE103- Financial Plan

E. Sources of Financing the Project

The overall source of the finances for the project are the personal investments in order to
startup the business and generate the revenue needed as early as possible. The company is
looking for investors willing to invest in the project.

F. Beginning and Proforma Financial Statement

Figure 1. Start Up Financial Statement for A2C3

 IE103- Financial Plan

The figure above shows the Start Up Financial Statement of the company, these
expenses are bound to change when the company has began its full operation and release
of product. The estimated amounts are also going to change as the company’s assets and
profiting will increase and such. The financial statements of the company will change and
will be more organize in a system manner when profits and product developments is
done.

G. Financial Analyses
➔ For the financial analysis, the company will utilize Test of Liquidity and Test of
Profability. Likely, that the company has investors and is a electronics company
having functional analyzaiton in the finance is a must.
II. MAJOR ASSUMPTIONS
A. Quality Control Costs
❖ It is important likely that it gives the company a systematic and good analysis in how to improve
their operations in creating the product.
❖ It will also serve as a way for the company to take control on the different mishaps upon
production.
B. Dividend Policy
❖ It is important for the company likely that it builds a good communication and understanding
between its investors and shareholders.
❖ It shows transparency on how the company works and how the invested money is run through.
C. Labor and Management Costing
❖ It determines the companies expense and dealing with the productivity of its employees. Also, it
reduces the cost of production and esure a good working environment.
D. Inventory Costing
❖ It helps the company understands its direct profit and the material used in the production. Also, it
helps in the means of protecting from illegal records of employees in the process of production.
E. Operating Account
❖ It helps the company operate and account the direct and indirect expenses. Also, it helps in
managing the companies handling of profit.
F. Intangible Assets an Government Regulations
❖ It helps the company follow Country’s tax protocols and ensures a strong competitive strategy in
business whilst creating custom value and such.
a. Selling Price- Provides for the correct and actual pricing of the product.
b. Production Volume- Checks and takes account on the amount of product created
and to be sold.
c. Tax Rates- Are needed to be followed, likely if government implemented, these
allows the company to check the needed Value Tax to be added.
d. Price Ceiling- Provides and accounts the company on the changes of prices of
raw material that maybe caused of economic market change.
 IE103- Financial Plan

III. TOTAL PROJECT COST

A. Fixed Assets-

These are the following for the fixed assets:

➔ Rent for Place

➔ Renovation of Place
➔ Machineries and Equipment
➔ Raw Materials
➔ Software Installation and Processing
B. Current Assets

These are the following for current Assets:

➔ Inventory Costing
➔ Quality Control Costing
➔ Labor Costing
➔ Marketing Research and Suvery
➔ Business Documents and Details
IV. SOURCES OF FINANCING FOR THE PROJECT
A. Personal Investments- The company’s source of main finance for the project is the
personal investments of the company owners. These personal investments are considered
to be their risk for the business to develop.
B. Investors- Investors are considered by the company when the company has developed
and started its main operations. Likely, when the product is a big hit, investors are needed
to further develop the company and the product.
V. PREPARATION OF FINANCIAL STATEMENT
➔ For the preparation of the Financial Statement, the company will utilize a cashflow
statement and balance sheet. This is to track the flow of spending of the money of the
company and also to take track of the inventory of the company.
VI. FINANCIAL ANALYSES
➔ As mentioned the company will utilize the Test of Liquidity and Test of Profitability. This
is likely to have a good analyses on the current assets that the company have and how it
can cover and take account on its expenses. Moreover, considering that the company has
investory profitability is also a must, likely to have an equity on the shareholders. The
company will utilize Current Ratio and Return on Equity.