Financial Plan

On January 1, 2019, Bono Reyes, Kyre Valdez and Emmanuel Lipana decided to form a
partnership. Each of them invested 8,000,000 of cash respectively to form the business.

Machineries and Equipment

Machineries and Image Description
Equipment
A. Machines
Thickness Planer It is a woodworking machine
use to trim boards to a
consistent thickness, their
length and flat on both surfaces

Circular Saw It is a tool for cutting materials

such as wood, masonry, plastic
or metal and may be hand-held
or mounted to a machine

Router It is most commonly used as a

plunging tool and also inverted
in a router table
Jig Saw It can be used to make both
straight and curved cuts in a
wide variety of materials,
including wood, particleboard,
plywood, plastic, metal, even
ceramic tile

Table 22. (Continuation)

Generator It is a machine that converts one
form of energy to another

Power Drill It is an electrical motor that

rotates a replaceable drill bit to
make a hole in wood, plastic, or
metal

Sander It is a power tool used to

smooth surface by abrasion
with sandpaper

Air-conditioning It produce cool ventilation

unit inside the building in which the
heat is taken out from a certain
location to give a chilled air
effect

B. Equipment
Combination It is a multi-use measuring
Square instrument which is primarily
used for ensuring the integrity
of a 90° angle, measuring 45°
angle, measuring the center of
circular object, find depth, and
simple distance measurements.
It can also be used to determine
level and plumb using its spirit
level vial
Tape Measure It is a portable measurement
device used to quantify the size
of an object or the distance
between objects

Chisels It is a tool with

characteristically shaped cutting
edge of blade on its end, for
carving or cutting a hard
material such as wood, stone, or
metal by hand, struck with a
mallet, or mechanical power
Hammer A tool with a heavy metal head
mounted at right angles at the
end of a handle, used for jobs
such as breaking things and
driving nails
Screwdrivers It is a tool or manual for
removing screws

Hand Saw It is used to cut pieces of wood

into different shapes

Clamp It is a fastening device used to

hold or secure objects tightly
together to prevent movement
or separation through the
application of inward pressure
Calculator It is a small, portable device
used to perform operations
ranging from basic arithmetic to
complex mathematics

Telephone It is used to audibly

communicate with other people
 Printer with It is a device that accepts text
Scanner and graphic output from a
computer and transfers the
information to paper, usually to
standard size sheets of paper

Fixture
Office Chairs It is a fixture used by the
managers and is placed on the
offices.

Office Modular It is a fixture that is used to

Partitioner organize the division at the
office.

C. Vehicle
Delivery Truck It is suitable for delivering
goods or services to customers

E. Others
Water Dispenser It is a device that cools ad
dispense water

Fire Extinguisher It is an active fire protection

device used to extinguish or
control small fires, often in
emergency situations

Electric Fan It is mechanical devices that

move air and other gases are
essential to human comfort and
safety and to some industrial
purpose

Refrigerator It is used to keep the food cold

and stay fresh longer
Cost of Machineries and Equipment
Machineries and Supplier Quantity Price Total
Equipment (Php) Cost
(Php)
Thickness Planer LL. Lopez and GFH Enterprise, 1 2,200.00 2,200.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Circular Saw LL. Lopez and GFH Enterprise, 1 6,500.00 6,500.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Router LL. Lopez and GFH Enterprise, 1 3,000.00 3,000.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Jig Saw LL. Lopez and GFH Enterprise, 1 2,500.00 2,500.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Combination LL. Lopez and GFH Enterprise, 3 150.00 450.00
Square Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Tape Measure LL. Lopez and GFH Enterprise, 3 170.00 510.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Power Drill LL. Lopez and GFH Enterprise, 1 2,500.00 2,500.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Sander LL. Lopez and GFH Enterprise, 1 2,800.00 2,800.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Chisels LL. Lopez and GFH Enterprise, 1 3,000.00 3,000.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Hammer LL. Lopez and GFH Enterprise, 3 200.00 600.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Screwdrivers LL. Lopez and GFH Enterprise, 1 1,000.00 1,000.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Hand Saw LL. Lopez and GFH Enterprise, 3 150.00 450.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Clamp LL. Lopez and GFH Enterprise, 3 500.00 1,500.00
Zone 6 Sto. Tomas, San Jose
City, Nueva Ecija
Calculator Pandayan Bookshop- 1 500.00 500.00
Cabanatuan- Crossing, Bodega
City Bldg., Maharlika Highway,
Burgos Ave. Ext. Sangitan Este,
Cabanatuan City, Nueva Ecija
 Delivery Truck Christian Motors,Maharlika 1 180,000.00 180,000.
Highway, Brgy. H. Concepcion, 00
Cabanatuan City, Nueva Ecija
Fire Extinguisher Ace Hardware, Megacenter 4 1,500.00 6,000.00
Mall, General Tinio Corner
Melencio Streets, Cabanatuan
City, Nueva Ecija
Refrigerator S & J Marketing Enterprise 1 12,000.00 12,000.0
AH26, San Jose City, Nueva 0
Ecija

Supplies Cost
Supplies Supplier Quantity Price Total Cost
(Php) (Php)
Common Nail #2 New City Lumber 10 kilos 50.00 500.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Common Nail #3 New City Lumber 10 kilos 45.00 450.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Finishing Nail #1 New City Lumber 10 kilos 60.00 600.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Rugby New City Lumber 3 bottle 56.00 178.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Paint thinner New City Lumber 3 gallon 190.00 570.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Paint (white, tan, New City Lumber White-10 bottles 590.00 5,900.00
dark, brown, gray) Hardware, Paco Tan-10 bottles 590,00 5,900.00
Roman St., Dark-10 bottles 590.00 5,900.00
Cabanatuan City, Brown-10 bottles 590.00 5,900.00
Nueva Ecija Gray-10 bottles 650.00 6,500.00
Paintbrush (small, New City Lumber Small-3pieces 15.00 45.00
medium, large) Hardware, Paco Medium-3pieces 20.00 60.00
 Roman St., Large-3pieces 30.00 90.00
Cabanatuan City,
Nueva Ecija
Varnish New City Lumber 50 bottles 70.00 3,500.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Wood Glue New City Lumber 3 boxes 250.00 750.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Termites Spray New City Lumber 4 bottles 350.00 1,400.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Screws New City Lumber 10 kilos 45.00 450.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Sand paper New City Lumber 4 yards 12.00 48.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Bond paper Pandayan Bookshop- 2 rims 250.00 500.00
Cabanatuan- Crossing,
Bodega City Bldg.,
Maharlika Highway,
Burgos Ave. Ext.
Sangitan Este,
Cabanatuan City,
Nueva Ecija
Ballpen Pandayan Bookshop- 2 boxes 100.00 200.00
Cabanatuan- Crossing,
Bodega City Bldg.,
Maharlika Highway,
Burgos Ave. Ext.
Sangitan Este,
Cabanatuan City,
Nueva Ecija
Stapler Pandayan Bookshop- 3 boxes 109.00 327.00
Cabanatuan- Crossing,
Bodega City Bldg.,
Maharlika Highway,
Burgos Ave. Ext.
Sangitan Este,
 Cabanatuan City,
Nueva Ecija
Door Knob New City Lumber 30 pieces 250.00 7,500.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Scissors Pandayan Bookshop- 3 pieces 30.00 90.00
Cabanatuan-
Crossing, Bodega
City Bldg.,
Maharlika Highway,
Burgos Ave. Ext.
Sangitan Este,
Cabanatuan City,
Nueva Ecija
Office clip Pandayan Bookshop- 1 box 30.00 30.00
Cabanatuan-
Crossing, Bodega
City Bldg.,
Maharlika Highway,
Burgos Ave. Ext.
Sangitan Este,
Cabanatuan City,
Nueva Ecija
Paper folder Pandayan Bookshop- 1 rim 200.00 200.00
Cabanatuan-
Crossing, Bodega
City Bldg.,
Maharlika Highway,
Burgos Ave. Ext.
Sangitan Este,
Cabanatuan City,
Nueva Ecija
Ply wood New City Lumber 3 piece 400.00 1,200.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Clear glass New City Lumber 4 pieces (whole) 600.00 2,400.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Povidone-Iodine Generics Pharmacy 1 bottle (60 ml) 50.00 50.00
Cotton Generics Pharmacy 1 pack 50.00 50.00
Alcohol Generics Pharmacy, 1 bottle (500 ml) 61.00 61.00
Paco Romano St.,
Cabanatuan City,
Nueva Ecija
Bandages New City Lumber 3 pieces 32.00 32.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Pain reliving patch New City Lumber 2 box 86.00 86.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Band aid New City Lumber 1 box 50.00 50.00
Hardware, Paco
Roman St.,
Cabanatuan City,
Nueva Ecija
Wood scrap LL. Lopez and GFH 20 sacks 100.00 2,000.00
Enterprise, Zone 6 Sto.
Tomas, San Jose City,
Nueva Ecija,

Grafitux Furniture,
Maharlika Highway,
Brgy., H. Concepcion,
Cabanatuan City,
Nueva Ecija
Total Amount ₱53,517.00

Utilities
Utility Sources Unit Cost Consumption Total
Rate (Annual)
(Monthly) (Php)
Water Supply Cabanatuan City 24.7/cu.mt. 20 cu.mt. 5928.00
Water District
Power Supply Cabanatuan Electric 8.3742/kwh 835 kwh 83909.52
Corporation
Philippine Long 99/month 1 1188.00
Communication Distance Telephone,
Cabanatuan City,
Nueva Ecija
Total Amount ₱ 91,025.52
 Financial Plan
Projected Income Statement
For the year ended 2019-2021

Particulars 2019 2020 2021

Facility Utilization 60% 65% 75%

Sale Revenue:

Furniture 20,200,000 21,900,000 25,100,000

Total Sales 20,200,000 21,900,000 25,100,000

Gross Profit 20,200,000 21,900,000 25,100,000

Admin and selling Expenses 1,500,000 1,500,000 1,500,000

Operating Profit 18,700,000 20,400,000 23,600,000

Interest Expenses Long term 1,950,000 1,649,080 1,309,040

Interest Expenses Short term 398,752 430,159 492,538

Depreciation 120,900 120,900 120,900

Earnings Before Tax 16,230,348 18,199,861 21,677,519

Earnings After Tax 9,738,209 10,919,97 13,006,511

Projected Cash Flow Statement

For the year ended 2019-2021

Cash Flow Statement

Particulars 2019 2020 2021

Cash flow from operating activities:

Earnings After Tax 9,738,209 10,919,97 13,006,511

(+) Depreciation 140,162 140,162 140,162

1) Net cash from operating activities 9,878,371 11,060,079 13,146,673

Cash flow from investing activities:

Initial cost of project 24,000,000

2) Net cash from investing activities 24,000,000

Cash flow from financing activities:

Increase in equity 10,000,000

Increase in term loan 15,000,000

Repayment of loan 2,348,752 (2,615,673) (2,955,709)

Less: Dividend paid 20% (1,777,194) (2,157,226)

3) Net cash from financing activities 22,651,248 5,392,867 5,112,935

4) Net increase/decrease in cash 5,863,181 4,640,992 5,821,080

5) Opening cash balance 200,000 5,883,181 10,524,173

6) Closing cash balance (4+5) 5,883,181 10,524,173 16,345,253

Projected Balance Sheet

For the year ended 2019-2021

Particulars 2019 2020 2021

LIABILITIES

Current Liabilities:
Long Term Loan 15,000,000 12,685,234 10,069,561

Less: Repayment of loan 2,314,757 2,615,673 2,955,709

Retained Earnings 9,738,209 18,880,932 29,730,217

Equity Capital 10,000,000 10,000,000 10,000,000

Total liabilities 32,423,453 38,950,493 46,844,069

ASSETS

Current Assets:
Cash 5,883,181 10,524,173 16,345,253

Total Current Assets 5,883,181 10,524,173 16,345,253

Fixed Assets:
Land 21,460,000 21,460,000 21,460,000

Equipment 890,000 872,000 854,000

Less: Depreciation 18,000 18,000 18,000

872,000 854,000 836,000

Building & Civil works 2,290,000 2,190,000 2,090,000

Less: Depreciation 100,000 100,000 100,000

2,190,000 2,090,000 1,990,000

Other Assets: (Generator) 110,000 90,738 71,476

Less: Depreciation 19,262 19,262 19,262

90,738 71,476 52,214

Preliminary expenses 50,000 50,000 50,000

Total Fixed Assets 24,662,738 24,525,476 24,418,214

Total Assets 30,545,919 29,171,866 31,625,882

Payback period

Payback period

0 24,000,000

1 9,878,371 9,878,371

2 11,060,079 20,938,450

3 13,146,673 34,085,123
 Project cost

Particulars Amount

land and site development 21,460,000

Building and Civil works 2,290,000

Plant and Machinery 900,000

Preoperative expense 50,000

Minimum cash requirement 200,000

Total 24,000,000

Building and Civil works

Building and Civil works

Particulars Amount

Office and security Building 290,000

Warehouse 600,000

Work Station 400,000

Total 2,290,000

Plant and Machinery

Plant and machinery

Particulars Amount

Equipment 790,000

Generator 110,000

Total 9,000,000
 Cost of Production

Particulars 2019 2020 2021

Direct cost

Material cost 260,000 289,200 333,700

labor cost 1,600,000 1,824,000 1,920,000

Prime cost 1,860,000 2,113,200 2,253,700

Factory Overhead

utilities cost 1,215,200 1,316,470 1,519,000

Depreciation 19,262 19,262 19,262

Works cost 3,094,462 3,438,241 3,791,962

Administrative overhead

Supervisor Salary 163,200 163,200 163,200

Maintenances 22,400 22,400 22,400

Cost of Production 3,280,062 3,634,532 3,977,562

Working capital requirement

Particulars 2022 2023 2024

Raw Material 260,000 289,200 333,700

Labor Cost 1,600,000 1,824,000 1,920,000

Factory Overhead 1,234,462 1,335,732 1,538,262

Administrative overhead 185,600 185,600 185,600

Total 3,280,062 3,634,532 3,977,562

 Administration and selling expences

Admin & Selling Expense

Salary {27,000+22,000+(20,000*3)+7,800+5000})*12 3,702,842.96 3,702,842.96 3,702,842.96

Advertising 56,000 56,000 56,000

Others 13,500 13,500 13,500

Total 3,772,342.96 3,772,342.96 3,772,342.96

Expenses of three years 2019, 2020, 2021.