Chapter VII.

Financial Statement
A. Projection per Daily Sales

Garapon Madness Store

Projected Daily Sales
January 2023
Daily Sales Quantity of Quantity of Total Price Total Sales
of Goods Sales (Direct) Sales (Online)
Adobong 15 35 50 80 4,000
Dilaw
Adobong 35 15 50 120 6,000
Calamansi
Daily Sales 100 10,000
Monthly 300,000
Sales

Garapon Madness Store

Projected Monthly Sales
Month Projected Rate Projected Sales
January - 300,000.00
February 5% 315,000.00
March 5% 330,750.00
April 5% 347,287.50
May 5% 364,651.88
June 5% 382,884.47
July 5% 402,028.96
August 5% 422,130.41
September 5% 443,236.93
October 5% 465,398.78
November 5% 488,668.72
December 5% 513,102.16
Annual Sales 4,775,139.81
B. Projection for Daily Cost
Garapon Madness Store
Projected Daily Cost
January 2023
Daily Cost of Quantity of Quantity of Total Price Total Sales
Goods Cost (Direct) Cost (Online)
Adobong 15 35 50 57.14 2,857
Dilaw
Adobong 35 15 50 91.19 4,559.50
Calamansi
Daily Cost 100 7,416.50
Monthly 222,495
Cost

Garapon Madness Store

Projected Monthly Cost
Month Projected Rate Projected Cost
January - 222,495.00
February 5% 233,619.75
March 5% 245,300.74
April 5% 257,565.78
May 5% 270,444.07
June 5% 283,966.27
July 5% 298,164.58
August 5% 313,072.81
September 5% 328,726.45
October 5% 345,162.75
November 5% 362,420.89
December 5% 380,541.93
Annual Sales 3,541,481.02
 Startup Expense
Garapon Madness Store

Sources of Capital

Owners' Investment (name and percent

ownership)
₱20,000 shared capital;
Lyzhandre Baello- Operation Manager 33.3%ownership
₱20,000shared capital; 33.3%
Melanie B. Rey- Accounting Manager ownership
₱20,000 shared capital;
Shaina Mae T. Secopito- Marketing Manager 33.3%ownership

Total Investment ₱60,000

Expenses
Packaging (100 pcs. Jar) ₱1,600
Raw Materials (100pcs. Jar) 5,817
Tools and Equipment 26,786
Marketing Expense 2,463.89
Business Permit 760
Total expenses ₱37,426
 DEPRECIATION

MONTH
RES US ANNUAL LY
IDU EF DEPREC DEPREC
ACQUISI ACQUISI AL UL IATION IATION
DESCRIPTI TION TION VAL LIF EXPENS EXPENS
NO. ON COST DATE UE E E E 2023 2024 2025
Equipments
1 &Bicycle 26,876 12/30/2022 5 5,375 448 21,501 16,126 10,750
 3 yrs. Projected Income Statement

Garapon Madness Store

Projected Income Statement

2023 2024 2025

Sales 4,775,138 5,013,895 5,264,590

Less:Cost of Good Sold 3,541,481 3,718,555 3,904,483

Gross Profit 1,233,657 1,295,340 1,360,107

Operating Expense

Salaries 480,000 504,000 529,200

Utilities Expense 14,400 15,120 15,876

Permits 1,520 1,596 1,676

Depreciation Expense 5,375 5,375 5,375

Marketing Expense 14,250 14,963 15,711

Repairs & Maintenance 3,000 3,150 3,308

Total Expense 518,545 544,204 571,145

Net Profit 715,112 751,136 788,962

Net Profit Beg. of the year - 715,112 1,466,248
Net Profit End of the year 715,112 1,466,248 2,225,209
 3yrs Cash Flow Projection
Garapon Madness Store

2023 2024 2025

Cash inflows

Cash on hand/sales 4,775,138 5,013,895 5,264,590

Total Cash Inflows 4,775,138 5,013,895 5,264,590

Cash outflows

Purchase of Goods 3,541,481 3,718,555 3,904,483

Operating expenses 513,170 538,829 565,770

Total Cash Outflows 4,054,651 4,257,384 4,470,253

Net Cash Flows from
operating activities 720,487 756,511 794,337

Cash Flow from

investing activities:
Cash out flow
Tools and Equipment 26,876
Net Cash Flow from investing 26,876

Cash Flow from

Financing Activities:
Partner's Capital 60,000
Net Cash Flow from
financing activities 60,000

Cash flow for the end

of Dec. 31 753,611 756,511 794,337
CASH AT THE
BEGINNING OF THE
YEAR - 753,611 1,510,122
CASH AT THE END OF THE
YEAR 753,611 1,510,122 2,304,459
 3 Years Projected Balance Sheet
Garapon Madness Store

2023 2024 2025

Assets
Current Assets

Cash on Hand 753,611 1,510,122 2,304,459

Non-current
Assets
Depreciation 21,501 16,126 10,750

Total Assets 775,112 1,526,248 2,315,209

Liabilities
Current Liabilities
Non-current Liabilities
Total:

Equity
Partner’s Capital 60,000 60,000 60,000
Net Profit 715,112 1,466,248 2,255,209
Total Liabilities and Equity 775,112 1,526,248 2,315,209
BREAK-EVEN ANALYSIS

Break-even analysis will help to identify how many adobo in a jar would be sold to cover
up the operating expenses without a loss nor profit.

𝐹𝐶
Formula for Break Even Point =
𝑃−𝑉𝐶

Where:

P - Selling price per unit

VC -Variable Cost

FC -Fixed Cost

Break-even analysis for 120 pesos selling price.

518,545
Break-even point =
120−91.19

Break-even point = 17,999 pcs. per year

7000000

6000000

5000000

4000000
Cost
3000000 Revenue
17,999
2000000

1000000

0
0 10,000 20,000 30,000 40,000 50,000 60,000
Break-even analysis for 80 pesos selling price.
518,545
Break-even point =
80−57.14

Break-even point = 22, 684 pcs. per year

4500000

4000000

3500000

3000000

2500000
Cost
2000000 22,684 Revenue
1500000

1000000

500000

0
0 10000 20000 30000 40000 50000 60000