VII.

FINANCIAL PLAN
PREPARED BY:
CHRISTALYN JOYCE A. MULITAS, LPT
 FINANCIAL PLAN
It'sat the end of your business plan, but
the financial plan section is the
section that determines whether or not
your business idea is viable, and is a key
component in determining whether or
not your plan is going to be able to
attract any investment in your business
idea.
Basically,the financial plan section
consists of three financial
statements:
INCOME
STATEMENT

Cash FLOW
STATEMENT

BALANCE SHEET
SOURCE OF FUND
ANNUAL DEPRECIATION COST Php 3,300
 All the costs of getting your business up and running
go into the start-up expenses category, expenses
may include:
• business licensing and permits
• starting inventory
• rent deposits
• purchase of equipment
• utility set up fees
 This is just a sampling of start up expenses; your
own list will probably expand as soon as you start
writing them down.
 Operating expenses are the costs of keeping your
business running. Think of these as the things
you're going to have to pay each month. Your list
of operating expenses may include:
• salaries
• rent
• utilities
• raw materials
• distribution
• promotion
• office supplies
• maintenance
Basic Financial Reports
 Balance Sheet - estimates the firm's
worth on a given date; built on the
accounting equation:
Assets = Liabilities + Owner's
Equity
 Income Statement - compares the firm's
expenses against its revenue over a
period of time to show its net income (or
loss):
Net Income = Sales Revenue -
Expenses
 Statement of Cash Flows - shows the
 BALANCE SHEET

 Balance Sheet – A financial statement that

summarizes a company's assets, liabilities and
shareholders' equity at a specific point in time.
 Asset – useful, or valuable thing; property owned by
a person or company
 Liabilities– a thing for which someone is responsible
especially a debt or financial obligation
 Owner’s Equity – represents the owners
investment; total asset of an entity, minus total
ASSE
T
CASH - It describes money, either in paper or in
coins.
Account Receivable - It describes collectibles
from customers who made transactions on
credit.
CAPITAL - It describes the original and
additional investment of the owner.
INVENTORY - It refers to goods that remain
unsold at unconsumed at the end of the
accounting period
LIABILITY
OWNER
’S
EQUITY
Balance Sheet

LIABILITIES ASSETS

Credit/Debt from suppliers Cash

Cash Receivables (Sales not yet
collected)
Fixed Assets
Lands
Buildings
Machinery/Equipment
Vehicles, etc.
Less: Accumulated Depreciation
Total Liabilities Total Assets
INCOME STATEMENT
A formal record of the
company’s financial activities that shows
revenues, expenses and profit/loss for a
particular period
PUTOLICIOUS
Projected Income Statement
Year 1
Revenues
Sales Revenue
Puto Sales 783,000
Drink Sales 485,300
Combo meals Sales 849,800
Total Revenus 2,118,100
 
Expenses
Cost of goods sold
Ingredients Purchases 250,000
Inventory Supplies 175,000
Drinks Purchases 210,430
Total Cost of good sold 635,430
 
Payroll Expenses
Wages and Salaries 77,946.64
Gov’t Payroll Taxes 7,530
Total Payroll Expenses 85,476.64

Administrative Expenses
Rent 300,000
Utilities 162,600
Business Fee & Licenses 6,000
Transportation 12,000
Advertising &Promotion 5,000
Total Administrative Expenses 495,800
Depreciation expense 10,200
TOTAL EXPENSES
1,216,705.64
INCOME BEFORE TAX 901,394.36
Income Tax Expense 27,041.83
NET INCOME Php 874,352.53
 ACCOUNTS PAYABLE - It describes the
financial obligations from goods
purchased or services received
 UTILITYEXPENSE - It describes the
expenses on electricity and water.
 TRANSPORTATION PLAN - It describes
the expenses on travel or fare of
personnel
CASH FLOW STATEMENT

A summary of the actual or

anticipated incomings and
outgoings of cash in a firm over an
accounting period.