Financial Plan

The business will have a start up capital of 306,000. Each of us will have a contribution of 153,000 to
fund the start up expenses. Our contribution of 153,000 each will serve as our investment. We agreed
that the profit and losses of our business will be divided equally and it will be added to our invested
capital.

Table: Start-Up

START-UP EXPENSES Amount

Fixed Assets 173,700
Direct materials 86,573
Salaries 27,000
Indirect Materials 4,000
Utilities expense 3,999
Rent expense 3,000
Advertising expense 1,000
Transportation 500
Pre- Operational expense 6,000
TOTAL REQUIREMENT 305,772.00 approx. 306,000.00

Based on the BEP of our business, we need to produce 351 pinalatan pizza, 397 Binanayan pizza and
Abraw pizza monthly to cover up our fixed cost. Yearly, we have to produce 13,284 pizzas. We assumed
that the demand will have a 5% increase yearly.

Table: Profit and loss

Profit and loss Year 1 Year 2 Year 3 Year 4 Year 5

Sales 2,173,560 2,282,238 2,396,349.9 2,516,167.39 2,641,975.75
Less: Cost of 1,410,876 1,462,819.8 1,517,360.79 1,574,628.8 1,634,760
production
Gross Profit 762,684 819,418.2 878,989.11 941,538.59 1,007,215.75

Less:
Expenses
 Utilities 41,988 41,988 41,988 41,988 41,988
expense
Rent 36,000 36,000 36,000 36,000 36,000
Pre- 6,000 --- --- --- ---
operational
expense
6,000 6,000 6000 6000 6000
Transportation
Depreciation 16,011 16,011 16,011 16,011 16,011
Advertising 1,000 1000 1000 1000 1000
expense
License and --- 1000 1000 1000 1000
permits
Total 106,999 101,999 101,999 101,999 101,999
expenses
NET PROFIT 655,685.00 717,419.2 776,990.11 839,539.59 905,216.75
5% increase of demand yearly

Table: Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

OPERATING
ACTIVITY
Profit 655,685 717,419.2 776,990.11 839,539.59 905,216.75
Adjustment
Dep. 16,011 16,011 16,011 16,011 16,011
Expense
Net cash 671,696 733,430.2 793,001.11 855,550.59 921,227.75
provided by
operating
activities
INVESTING
ACTIVITY
Purchase of 173,700 --- --- --- ---
equipment
Net cash in 173,700 --- --- --- ---
the investing
activity

FINANCING
ACTIVITY
Parties 306,000 --- --- --- ---
contribution
Net cash 306,000 --- --- --- ---
provided by
financing
activity
Net increase
in cash
Total net 1,151,396 733,430.2 793,001.11 855,550.59 921,227.75
cash provided
and used
Cash --- 1,151,396 1,884,862.2 2,677,827.31 3,533,377.9
Beginning
Cash Ending 1,151,396 1,884,826.2 2,677,827.31 3,533,377.9 4,454,605.65
Table: Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current assets
Cash 1,151,396 1,884,862.2 2,677,827.31 3,533,377.9 4,454,605.65
Non-current
assets
Equipment 173,700 173,700 173,700 173,700 173,700
Accum. Dep. 16,011 32,022 48,033 64,044 80,055
Total Asset 1,341,107 2,090,548.2 2,899,560.31 3,771,121.9 4,708,360.65
LIABILITIES
AND
PARTNERS
EQUITY
Liability --- --- --- --- ---
Partners
Capital
Jayson’s 153,000 480,842.5 839,552.1 1,228,047.16 1,647,816.96
capital
Darylle’s 153,000 480,842.5 839,552.1 1,228,047.16 1,647,816.96
Capita
Total partners 306,000 961,685 1,679,104.2 2,456,094.31 3,295,633.91
capital
beginning
Add: Net Profit 655,685 717,419.2 776,990.11 839,539.59 905,216.75
TOTAL 961,685 1,679,104 2,456,094 3,295,633.91 4,200,850.67
LIABILITIES
AND
PARTNERS
EQUITY
Break- Even Point Analysis

FIXED COST
Wage 6,600
Rent 3000
Utilities Expense 3999
Advertising 1000
Transportation 500
Total 15,099.00

PRODUCTION COST OF PINALATAN PIZZA

Dough 35
Toppings 44
Sauce and Cheese 33
Total 112.00
If the charge of Pinalatan pizza is 155.00 then it receives 43pesos for pizza to contribute to the fixed
cost and ultimately the business profit.

Selling price(155)- Production cost(112)= 43.00 gain/ Pinalatan Pizza

Fixed Cost(15,099)÷ Gain(43)=351 pinalatan pizza per month

PRODUCTION COST OF BINANAYAN PIZZA

Dough 35
Toppings 64
Sauce and cheese 33
Total 132.00
If the charge to Binanayan Pizza is 170 then it recieves 38.00 for pizza to contribute to the fixed cost
and ultimately to the business profit.

170-132=38.00 gain/ Binanayan Pizza

15,099 ÷ 38= 397 Binanayan pizza per month

PRODUCTION COST OF ABRAW PIZZA

Dough 35
Toppings 55
Sauce and Cheese 33
Total 123.00
If the charge to Abraw pizza is 165.00 then it recieves 42.00 for pizza to contribute to the fixed cost
and ultimately to the business profit.

165-123=42.00 gain per abraw pizza

15,099 ÷ 42= 359 abraw pizza per month

Ippizandayaw must sell 1,107 pizza in a month (351 pinalatan pizza, 397 binanayan pizza and 359
abraw pizza) in order to break even for the month. Each pizza sold after that contributes to the
bottomline of the business.

RETURN OF INVESTMENT

Year 1 Year 2 Year 3 Year 4 Year 5

214% 234% 253% 274% 295%
ROI=Net profit/Total Investment×100

PROFITABLE RATIO

GROSS PROFIT RATIO

Year 1 Year 2 Year 3 Year 4 Year 5

35.08% 35.90% 36.68% 37.41% 38.12%
GPR=Gross profit/Net Sales×100