The Finances

Key objectives & financial review

Financial objectives

 Achieve at least Php 11,250 monthly sales

 An increase of at least 15% on the business’ monthly profit
 Average daily sales of at least 75 pieces of Vegie-pop
 Have a monthly cash balance of 20% of the opening balance by the end of the first year of the business operations.
Finance required
The opening balance of Vegie-pop snacks is Php 10,700.00 which will be allocated for registration, lease, insurance, marketing, and other expenses
needed for the business to operate. The owners will split the capital cost equally (Php 10,700.00/8) which will bring a share of Php 1,337.00 each.
Given the fact that all of them are young entrepreneurs who are still currently studying in high school, most of them will be receiving help from their
parents/guardian in order to fulfill their financial obligations for the business.

Assumptions
The financial tables on the subsequent pages are based on the assumptions listed below:

 Constant rental and insurance expense within the next three years.
 The business will be able to maintain the original price of vegie-pop
 After three years, the business owners will be able to purchase a computer that will be used for the business operation
Start-up costs for 2023
Balance sheet forecast
Profit and loss forecast

PROFIT & LOSS FORECAST 2023 2024 2025

Sales ₱ 135,000.00 ₱ 138,600.00 ₱ 162,000.00

less: cost of goods sold ₱ 99,900.00 ₱ 102,564.00 ₱ 119,880.00

Gross profit/net sales ₱ 35,100.00 ₱ 36,036.00 ₱ 42,120.00

Expenses

Advertising & marketing ₱ 500.00 ₱ 420.00 ₱ 540.00

Bank fees & charges ₱ 60.00 ₱ 72.00 ₱ 72.00

Utilities (electricity, gas, water) ₱ 3,600.00 ₱ 3,600.00 ₱ 3,620.00

Lease/loan payments ₱ 11,400.00 ₱ 11,400.00 ₱ 11,400.00

Repairs & maintenance ₱ 250.00

Insurance ₱ 1,200.00 ₱ 1,200.00 ₱ 1,200.00

Total expenses ₱ 16,760.00 ₱ 16,942.00 ₱ 16,832.00

NET PROFIT ₱ 18,340.00 ₱ 19,094.00 ₱ 25,288.00

Expected cash flow
Break-even analysis