A.

Financial Assumption
Sales
Annual sales will be projected based on the demand and supply gap, and then
supply capacity will be itemized or divided according to ranges on how many sacks a
single demand (customer) willing to buy to get the total number of sacks needed by the
customer in its station multiplied by the number of times they will buy an activated
carbon based on how frequent they change their activated carbon to arrive at the total
annual number of sacks to be sold for the year times the unit price (per sack) will be the
projected sales for the year.

Cost of Goods Sold

Direct Materials
Raw materials purchased such as Povidone-iodine costing Php 375.00 per bottle
will be on sale by 50% off as a result of buying 25 bottles in single business deal. A sack
of an empty coconut shell which originally cost Php 50.00 per sack in regular business
transaction will be charge only Php 14.00 per sack by a major supplier of empty coconut
shells which has a business in producing

buko juice and buko pie, and owns an

agricultural and farming of coconut trees for its major source of fresh coconut as its
major raw materials needed. The proponents used all of their contacts just to apply cost
saving techniques in the operation of the business, to generate higher profit at a lower
cost.
Direct Labor
Direct labor cost includes the annual salary of the production helper which
operates manufacturing equipments and directly associated in producing the product.

Factory Overhead
Based on the direct labor cost, factory overhead is 10% more than the direct
labor cost. These are the indirect materials and supplies, and labor used in the
production.

Profit Distribution
Net Profit will be distributed to the partners using the capital ratio, based on their
original capital contributed in the beginning of the operation, which is 38:62, as agreed
by the partners.

Inventory
The partners agreed to eliminate inventory account because their production of
activated carbon will be on a per order basis, meaning operation or production of goods
will be based on the on the spot ordering time of the customer with an allowance of
delivery time on the date needed by the customers. This will eliminate cost of storage,
and prevents too much waste and spoilage of goods.

Utilities Expense
This will cover the water, electricity, and telecommunication needs in the
operation. After every two (2) years, water and electricity will increase by 1% because
we believe that every after two years our business will need to consume more power of
electricity and need of water due to business growth that the business will be
experiencing. Fuel for delivery truck is also part of utilities expense.

Taxes and Licenses

For the start of the operation the business is liable for the fees as a legal
requirement in the business industry. After the first year of operation payment of the said
fees will be fixed at Php 1,500 for the annual renewal of business license.

Miscellaneous Expense
This account is used to support small amount of financial needs of the business.
Office supplies are the primary recipient of the Php 2,000 miscellaneous expense
established by the business and it will increase by 10% after every two years for the
larger operation in the future.

Repairs and Maintenance

The business set aside funds for securing or safeguarding all of its equipment
especially those who are directly needed or related to the operation and generation of
net profit, manufacturing equipment (reactor) and delivery equipment, to make sure that
the business will be continuously earning profit and the equipment will be functioning
effective and efficiently.

B. Total Project Cost

A total cost of Php 2,809,449.00 is needed to start the project. Cost of land and
the delivery equipment will be credited by partners as part of capital while the
remaining equipments will be settle using their cash investments.

Cost of Land Property

Php

1,000,000.00

Cost of equipments:
Office Equipment

9,449.00

Delivery Equipment

300,000.00

Manufacturing Equipment

1,500,000.00

Total Project Cost

Php

2,809,449.00

C. Initial Working Capital

Cash Investment of Partners
Padolina, Dianne
Torregoza, Evone

Php

850,000.00
850,000.00

Php

1,700,000.00

Both partners agreed to contribute equal amount of cash amounting to Php

850,000.00 each to establish funds as initial working capital needed to defray primary
obligations of the firm from the start of its operation.

D. Sources of Financing the Project

Internal Source of Financing

Funds acquire within the firm largely through earnings and depreciation.
External Source of Financing
These are funds provided by the owners or partners which are commonly part of
their investments in their capital balances.

Financial
Statements

E. Financial Statement Analysis

This involves careful selection of data or information from the financial
statements to evaluate and asses the performance of the firm and its present condition.

Profitability Ratios

Measure earnings in relation to some base such as assets, sales, or capital.

Profit Margin
Measures the percentage of net income to sales.
Return on Investment
This indicates whether the management of the firm is using wisely.

Liquidity Ratios
Provide users of financial statements for the information about the firms ability to
pay its current obligations and continue operations.
Current Ratio
This is a test of short-term debt paying ability of the firm.
Quick Ratio
Measures the firm capacity to pay its short-term debts from its most liquid assets,
those assets that are easily convertible to cash for payment of current obligations

Asset Management Ratios

This provides relevant information on how the firm uses all of its assets to
generate revenue and income.
Fixed Assets Turnover Ratio
Measures the level of use of property, plant, and equipment.
Investment Rate
Measures the percentage change in total capital.

Total Assets Turnover Ratio

Measures the level of capital investment relative to sales volume.

HINDI KASAMA SA IPPRINT!

Instruction lamang.
Una: iprint as is ung nasa CA Financial Statements na
excel file sa tamang pagkakasunud-sunod.
1. BALANCE SHEET

2. INCOME STATEMENT
3. CASH FLOW
4. CHANGES IN EQUITY
Pangalawa: At ilagay ang apat na statement after ng
FINANCIAL STATEMENTS na papel dito sa financial
aspect
Pangatlo: Tapos ng mga statements isunod and mga
pahina ng E.Financial Statements Analysis at sa
pinakahuli ilagay ang FINANCIAL RATIOS na makikita
sa CA Financial Statement na excel file kung saan ipprint
ito direkta mula sa excel file.
Pang-apat: iprint direkta mula sa excel file ang mga
natitirang sheet.

Computation of sales
CGS
Salaries
Appendices

Ito ay mga supporting computations lamang, mga hndi

imoportanteng data, pero importanteng malaman nyo pra

masundan ninyo ang mga amounts at figures na nsa

statements.

Pde dn ninyong ipresent ung computation pram as

maunawaan ng panel kung sn ninyo nakuha ang mga
amount at figures.