ASSUMPTIONS

This portion shows all the major assumptions of the Project and consists of the following:
All Figures below are in Philippine Peso.
The Organization is in the form of General Partnership with a total Capital Investment of P 737,000.00. each of the 11 partners contributing P67,000.00
The firm will commence its operation at the beginning of 2024.
All sales are on Cash Basis. (No Receivables)
The amount of Sales and purchases are VAT inclusive (Business is VAT-registered)
The unit sales are projected to escalate 5% every year
The unit sales price is projected to escalate 3% every year
Raw Materials inventory are bought on Cash Basis.
Inventories are onb First in, First out (FIFO) basis.
All expenses are assumed to be increase by 3% every year.
The accounting policy of the firm uses "Expense Method" in treating small amount of supplies
Straight-line method is used for utilization of Property, Plant and Equipment (with no Residual Value). The estimated usefue life of PPE is shown in the financial Schedules.
SSS FUND, PHILHEALTH FUND, AND HOME DEVELOPMENT FUND (PAG-IBIG) are to be paid next Month. The payment for the last month will be processed the following year.
Income tax rate used is 30% and will be paid quarterly.
In accordance to the law, income tax for the whole shall be treated as expense but income tax for the last quarter will be treated payable on the current year.
The partners will withdraw each 70% of their share in the Net Income annually.
The partners will share its profit equally.
Petty Cash Fund of P20,000 is established.
The interest rate for investment is 0.25% with a withholding tax of 20% (BDO)
Raw Materials Inventory ending balance is assumed to be 15% of the raw Materials placed for Production.
Work in progress Inventory is assumed to be a day's worth of Total Manufacturing Cost.
MARK-UP 34%

INTIAL START UP COST

FIXED INVESTMENT

Construction Equipment (See Notes to Balance Sheet 20) 8,160.00

Furniture and Fixtures 54,025.00
Office Equipment 42,122.00
LeaseHold Improvement 12,917.00
INITIAL PROJECT COST 117,224.00
PRE-OPERATING EXPENSE

Taxes and Licenses Expense 16,350.00

Prepaid rent 15,000
Office Supplies Expense (Annual) 11,705.00
Cleaning Supplies Expenses (Annual) 7,626.00
TOTAL PRE-OPERATING EXPENSE 50,681.00

INITIAL WORKING CAPITAL

Within 3 Months of Operations
RawMaterials (1 Month) 47,712.00
Utilities Expense (3 months) 19,500.00
Allowance Expense (3 months) 132,000.00
Employees Benefits (3 Months) 2,490.00
TOTAL INITIAL WORKING CAPITAL 201,702.00

TOTAL 369,607.00
Add: Margin of Safety P
TOTAL PROJECT COST 737,000.00

c
 STATEMENT OF FINANCILA PERFORMANCE
FOR THE YEARS ENDED DECEMBER 31, 2019-2022

NOTES PRE OPERATING 2023 2024 2025

Sales 1 - 1,612,800.00 ### ###
Less: Cost of Good Sold 2 - 1,209,600.00 ### 6,961,368,519.49
Gross Profit - 403,200.00 ### ###

Less: Selling and Administrative Expenses

Taxes and Licenses Expense 3 16,350.00 16,350.00 813.96 830.24
Cleaning Supplies Expense 4 7,626.00 7,626.00 - -
Office Supplies Expense 5 11,705.00 11,705.00 - -
Rent Expense 6 78,000.00 - -
Utilities Expense 7 132,000.00 2,000.00 2,000.00
Salaries Expense payroll - -
Depreciation Expense - Furniture and Fixtures 8 22,050.00 22,050.00
Depreciation Expense - Office Equipment 9 1,600.00 1,600.00
Depreciation Expense - Leasehold Impovement 10 8,400.00 8,568.00 8,739.36
Depreciation Expense - Delivery Equipment 11 - - -
SSS and EC Premiums Expense 13 13,312.00 13,578.24 13,849.80
Philhealth Premium Expense 14 13,312.00 13,578.24 13,849.80
PAGIBIG Premiums Expense 15 1,879,335.44 1,966,583.11 2,140,197.57
13th Month Pay 16 - - -
Total Selling & Administrative Expenses 35,681.00 2,160,040.44 2,028,771.55 2,203,116.78
Operating Income - 35,681.00 - 1,756,840.44 ### ###
Add: Interest Income 17 - - - -
Net Income(Loss) before Tax - 35,681.00 - 1,756,840.44 ### ###
Less: Income Tax (30%) - - 527,052.13 ### ###
Net Income(Loss) After Tax - 35,681.00 - 1,229,788.31 ### ###
 NOTES PRE-OPERATING 2020

ASSETS
CURRENT ASSETS
Cash 367,393.00 ###
Cash in Bank 178,363.00
Petty Cash Fund 20,000.00 40,000.00
Prepaid Rent 15,000.00 75,000.00
Raw materials Inventory 18 47,712.00 304,547,436.00
Work In Progress Inventory 19 16,690,438.87
Finished Goods Inventory 20 - 303,765,987.52
Total Current Assets 628,468.00 ###

NON-CURRENT ASSETS
Construction equipment (NET) 21 8,160.00 -
Furniture and Fixtures (NET) 22 42,652.00 14,225.00
Office Equipment (NET) 23 42,122.00 192.00
Leasehold Equipment (NET) 24 12,917.00 -
Total Non-Current Equipment 105,851.00 14,417.00

TOTAL ASSETS 734,319.00 ###

LIABILITIES AND PARTNER'S EQUITY

LIABILITIES
CURRENT LIABILITES
Salaries Payable 25 - 6,976.00
Utilities Payable 26 - 1,304.49
Rent Payable - 5,000.00
SSS and EC Premiums Payable 27 - 1,400.00
PhhilHealth Premiums Payable 28 - ###
PAGIBIG Premiums Payable 29 - 3,300,919,538.40
VAT Payable 30 - -
Income Tax Payable 31 - -
Total Liabilities - ###

PARTNER'S EQUITY
PARTNER 1 66,756.27 168,875.58
PARTNER 2 66,756.27 168,875.58
PARTNER 3 66,756.27 168,875.58
PARTNER 4 66,756.27 168,875.58
PARTNER 5 66,756.27 168,875.58
PARTNER 6 66,756.27 168,875.58
PARTNER 7 66,756.27 168,875.58
 PARTNER 8 66,756.27 168,875.58
PARTNER 9 66,756.27 168,875.58
PARTNER 10 66,756.27 168,875.58
PARTNER 11 66,756.27 168,875.58
TOTAL PARTNER'S EQUITY 734,318.97 1,857,631.35
TOTAL LIABILITIES AND PARTNER'S EQUITY 734,318.97 ###

DIFFERENCE (0.0) 2,824,090.5

 2021 2022

### ###

40,000.00 40,000.00
75,000.00 75,000.00
326,170,303.96 349,328,395.54
17,875,311.16 19,144,306.43
341,353,484.35 366,387,816.82
### ###

- -
17,101.00 17,101.00
1,500.00 1,500.00
- -
18,601.00 18,601.00

### ###

7,012.40 7,230.80
1,330.58 1,357.19
25,000.00 25,000.00
1,400.00 1,400.00
### 15,145,160,192.98
### 3,786,290,048.25
- -
- -
### 18,931,485,229.22

### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 3,943,502,888.41
### 43,378,531,772.47
### 62,310,017,001.69

### (80,866,253,806.5)
CASH FLOW FROM OPERATING ACTIVITES PRE OPERATING 2020 2021 2022

NET PROFIT BEFORE TAX - 35,681.00 - 1,756,840.44 117,878,488,625.76 126,232,664,549.33

Depreciation Expense - Construction Equipment 10,302.47 10,302.47 10,302.47
Depreciation Expense - Furniture and Fixtures - 22,050.00 22,050.00 22,050.00
Depreciation Expense - Office Equipment - 1,600.00 1,600.00 1,600.00
Depreciation Expense - Leasehold Impovement - 8,400.00 8,568.00 8,739.36
Depreciation Expense - Delivery Equipment - - - -
(Increase) Decrease in Petty Cash - 40,000.00 -
(Increase) Decrease in Prepaid Rent - 15,000.00 -
(Increase) Decrease in Raw Materials Inventory - -304,547,436.00 - 21,622,867.96 - 23,158,091.58
(Increase) Decrease in WIP Inventory - - 16,690,438.87 - 1,184,872.28 - 1,268,995.28
(Increase) Decrease in Finished Good Inventory - -303,765,987.52 - 37,587,496.83 - 25,034,332.46
Increase(Decrease) in Salaries Payable - 6,976.00 - -
Increase(Decrease) in Rent Payable - 60,000.00 - -
Increase(Decrease) in Utilities Payable - 1,304.49 26.09 26.61
Increase(Decrease) in SSS and EC Premiums Payable - 1,400.00 - -
Increase(Decrease) in PhilHealth Payable - ### 937,461,148.91 1,004,020,890.48
Increase(Decrease) in PAGIBIG Premiums Payable - ### 234,365,287.23 -
Increase(Decrease) in VAT Payable - - - -
Income Tax paid - - - -
Net Cash Provided (used) by Operating Activites - 90,681.00 ### 118,989,962,371.38 127,187,266,738.93

CASH FLOW FROM INVESTING ACTIVITES

Cash Paid for Construction Equipment -
Cash paid for Furniture and Fixtures -
Cash paid for Office Equipment - 1,599.00
Cash paid for Leasehold Improvement -
Cash paid for Delivery Equipment - 204,960.00
Net Cash Provided (used) by Investing Activites - 206,559.00 - - -

CASH FLOW FROM FINANCING ACTIVITIES

 Cash received froim Partners Contributed Capital -
Cash Paid to Partners (Withdrawal) - 860,851.82 - 57,760,459,426.62 - 61,854,005,629.17
Net Cash Provided (used) by Financing Activities - 860,851.82 - 57,760,459,426.62 - 61,854,005,629.17

Net Cash Provided (used) by Operating Activites - 90,681.00 ### 118,989,962,371.38 127,187,266,738.93
Net Cash Provided (used) by Investing Activites - 206,559.00 - - -
Net Cash Provided (used) by Financing Activities - 860,851.82 - 57,760,459,426.62 - 61,854,005,629.17
Increase (Decrease) in Cash - 297,240.00 ### 61,229,502,944.76 65,333,261,109.76
Add: Beginning Balance - - 297,240.00 15,878,512,633.93 77,108,015,578.69
Ending Balance - 297,240.00 ### 77,108,015,578.69 142,441,276,688.45
 PRE-OPERATING PARTNER 1 PARTNER 2 PARTNER 3
BEGINNING CAPITAL 200,000.00 200,000.00 200,000.00
ADD/LESS: PROFT (LOSS) INVESTMENT - 2,744.69 - 3,393.00 - 3,393.00
TOTAL CAPITAL 197,255.31 196,607.00 196,607.00
LESS: WITHDRAWAL - - -
ENDING CAPITAL 197,255.31 196,607.00 196,607.00

2020 PARTNER 1 PARTNER 2 PARTNER 3

BEGINNING CAPITAL 197,255.31 196,607.00 196,607.00
ADD/LESS: PROFT (LOSS) INVESTMENT - 94,599.10 - 94,599.10 - 94,599.10
TOTAL CAPITAL 102,656.21 102,007.90 102,007.90
LESS: WITHDRAWAL - 66,219.37 - 66,219.37 - 66,219.37
ENDING CAPITAL 168,875.58 168,227.27 168,227.27

2021 PARTNER 1 PARTNER 2 PARTNER 3

BEGINNING CAPITAL 168,875.58 168,227.27 168,227.27
ADD/LESS: PROFT (LOSS) INVESTMENT 6,347,303,233.69 ### ###
TOTAL CAPITAL 6,347,472,109.27 ### ###
LESS: WITHDRAWAL 4,443,112,263.59 ### ###
ENDING CAPITAL 1,904,359,845.69 ### ###

2020 PARTNER 1 PARTNER 2 PARTNER 3

BEGINNING CAPITAL 1,904,359,845.69 ### ###
ADD/LESS: PROFT (LOSS) INVESTMENT 6,797,143,475.73 ### ###
TOTAL CAPITAL 8,701,503,321.42 ### ###
LESS: WITHDRAWAL 4,758,000,433.01 ### ###
ENDING CAPITAL 3,943,502,888.41 ### ###
 PARTNER 4 PARTNER 5 PARTNER 6 PARTNER 7 PARTNER 8 PARTNER 9
200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
- 3,393.00 - 3,393.00 - 3,393.00 - 3,393.00 - 3,393.00 - 3,393.00
196,607.00 196,607.00 196,607.00 196,607.00 196,607.00 196,607.00
- - - - - -
196,607.00 196,607.00 196,607.00 196,607.00 196,607.00 196,607.00

PARTNER 4 PARTNER 5 PARTNER 6 PARTNER 7 PARTNER 8 PARTNER 9

196,607.00 196,607.00 196,607.00 196,607.00 196,607.00 196,607.00
- 94,599.10 - 94,599.10 - 94,599.10 - 94,599.10 - 94,599.10 - 94,599.10
102,007.90 102,007.90 102,007.90 102,007.90 102,007.90 102,007.90
- 66,219.37 - 66,219.37 - 66,219.37 - 66,219.37 - 66,219.37 - 66,219.37
168,227.27 168,227.27 168,227.27 168,227.27 168,227.27 168,227.27

PARTNER 4 PARTNER 5 PARTNER 6 PARTNER 7 PARTNER 8 PARTNER 9

168,227.27 168,227.27 168,227.27 168,227.27 168,227.27 168,227.27
### 6,347,303,233.69 ### ### 6,347,303,233.69 6,347,303,233.69
### 6,347,471,460.96 ### ### 6,347,471,460.96 6,347,471,460.96
### 4,443,112,263.59 ### ### 4,443,112,263.59 4,443,112,263.59
### 1,904,359,197.38 ### ### 1,904,359,197.38 1,904,359,197.38

PARTNER 4 PARTNER 5 PARTNER 6 PARTNER 7 PARTNER 8 PARTNER 9

### 1,904,359,197.38 ### ### 1,904,359,197.38 1,904,359,197.38
### 6,797,143,475.73 ### ### 6,797,143,475.73 6,797,143,475.73
### 8,701,502,673.11 ### ### 8,701,502,673.11 8,701,502,673.11
### 4,758,000,433.01 ### ### 4,758,000,433.01 4,758,000,433.01
### 3,943,502,240.10 ### ### 3,943,502,240.10 3,943,502,240.10
 PARTNER 10 PARTNER 11 PARTNER 12 PARTNER 13 TOTAl
200,000.00 200,000.00 200,000.00 200,000.00 2,600,000.00
- 3,393.00 - 3,393.00 - 3,393.00 - 3,393.00 - 43,460.69
196,607.00 196,607.00 196,607.00 196,607.00 2,556,539.31
- - - - -
196,607.00 196,607.00 196,607.00 196,607.00 2,556,539.31

PARTNER 10 PARTNER 11 PARTNER 12 PARTNER 13 TOTAl

196,607.00 196,607.00 196,607.00 196,607.00 2,556,539.31
- 94,599.10 - 94,599.10 - 94,599.10 - 94,599.10 - 1,229,788.31
102,007.90 102,007.90 102,007.90 102,007.90 1,326,751.00
- 66,219.37 - 66,219.37 - 66,219.37 - 66,219.37 - 860,851.82
168,227.27 168,227.27 168,227.27 168,227.27 2,187,602.82

PARTNER 10 PARTNER 11 PARTNER 12 PARTNER 13 TOTAl

168,227.27 168,227.27 168,227.27 168,227.27 2,187,602.82
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###

PARTNER 10 PARTNER 11 PARTNER 12 PARTNER 13 TOTAl

### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
 2020
SCHEDULE 1 - DIRECT MATERIALS
1 Sticky Rice 80,640.00
2 Condense 1,561.91
3 Cheese 2,225.85
3 Lumpia Wrapper 100.00
4 Oil 38.75
5 Evaporated Milk 30.00
TOTAL MATERIALS COST PER UNIT 84,596.51

Number of Units Sold Annually 80,640

Material Cost per Product 84,596.51
Overall Direct Material Cost 6,821,862,566.40
Less: 12% Inclusive Input Tax (VAT) 730,913,846.40
DIRECT MATERIALS 6,090,948,720.00
Production Employees' Annual Salary
Production Employees' Annual Benefits
SCHEDULE 2 - DIRECT LABOR
1 958,464.00
2 92,702.88
DIR Depreciation - Construction Equipment 1,051,166.88

SCHEDULE 3 -MANUFACTURING OVERHEAD

1 10,302.47
MANUFACTURING OVERHEAD 10,302.47

SCHEDULE 4 -TOTAL MANUFACTURING COST

Direct Materials (See Schedule 1) 6,090,948,720.00
Direct Labor (See Schedule 2) 1,051,166.88
Manufacturing Overhead (See Schedule 3) 10,302.47
Total Manufacturing Cost 6,092,010,189.35

SCHEDULE 5 - COST OF GOODS MANUFACTURED

Work in Progress Beginning -
Add: Total Manufacturing Cost (See Schedule 4) 6,092,010,189.35
Less: Work In Progress - Ending 16,690,438.87
Cost of Goods Manufactured 6,075,319,750.47

SCHEDULE 6 -DEPRECIATION CONSTRUCTION EQUIPMENT

Electric Shear 18,310.00
Combination Tool Set 1,199.75
Welding Machine 4,399.00
Metal Sheet 8,970.00
Welding Rod 345.00
Angle Grinder 3,599.75
Screw Driver 4,800.00
Screw Driver 12,600.00
Total Price 54,223.50
Less: 5% Salvage Value 2,711.18
Depreciation Amount 51,512
Useful Number of years 5
Depreciation - CONSTRUCTION EQUIPMENT 10,302.47
 2021 2022

82,252.80 83,897.86
1,593.15 1,625.01
2,270.37 2,315.77
102.00 104.04
39.53 40.32
30.60 31.21
86,288.44 88,014.21

84,672 88,906
86,288.44 88,014.21 4.45
7,306,214,808.61 7,824,956,060.03
782,808,729.49 838,388,149.29
6,523,406,079.12 6,986,567,910.74 568,488,547.20

977,633.28 997,185.95
94,556.94 96,448.08
1,072,190.22 1,093,634.02

10,302.47 10,302.47
10,302.47 10,302.47

6,523,406,079.12 6,986,567,910.74
1,072,190.22 1,093,634.02
10,302.47 10,302.47
6,524,488,571.80 6,987,671,847.22

16,690,438.87 17,875,311.16
6,524,488,571.80 6,987,671,847.22
17,875,311.16 19,144,306.43
6,523,303,699.52 6,986,402,851.95

18,310.00 18,310.00
1,199.75 1,199.75
 4,399.00 4,399.00
8,970.00 8,970.00
345.00 345.00
3,599.75 3,599.75
4,800.00 4,800.00
12,600.00 12,600.00
54,223.50 54,223.50
2,711.18 2,711.18
51,512 51,512
5 5
10,302.47 10,302.47
NOTE TO INCOME STATEMENT 2023
NOTE 1 - TAXES AND LICENSES
Reservation Fee 5,000.00
Filling Fee 3,000.00
Registration Fee 500.00
Notarize Articles of Incorporation and Affidavit 250.00
BIR Annual Registration Fee 500.00
Documentary Stamp Tax 100.00
Book of Accounts 600.00
Barangay Business Clearance 800.00
Community Tax Permit 500.00
Mayor's Busines Permit 5,000.00
Notary Business Permit Form 100.00
TAXES AND LICENSES EXPENSE 16,350.00

NOTE 2 - CLEANING SUPPLIES EXPENSES

Mop Spinner 798.00
Broom & Dustpan 960.00
Liquid Detergent 1,500.00
Hand Soap 2,160.00
Tissue 1,308.00
Trash Bag 900.00
Trash Bin 450.00
Feather Duster 76.00
CLEANSING SUPPLIES EXPENSE 7,626.00

NOTE 3 - OFFICE SUPPLIES EXPENSE

Bond Paper 6,750.00
Printer's Ink 2,880.00
Staple Wires 900.00
Stapler 360.00
Calculator 600.00
Pen 125.00
Record Book 90.00
OFFICE SUPPLIES EXPENSE 11,705.00

NOTE 4 -RENT EXPENSE

Monthly Rent 5,000
Number of Months in a Year 12
RENT EXPENSE 60,000.00

NOTE 5-UTILITIES EXPENSE

 Monthly Electricity 3,000.00
Monthly Water 2,000.00
Monthly Landline and Internet 1,500.00
Total Monthly Utilities 6,500.00
Number of Months in a Year 12
UTILITIES EXPENSE 78,000.00

NOTE 6 - FURNITURE AND FIXTURES

Office Table 2,000.00
Offcie Chair 5,400.00
Room Lights 1,575.00
Vase 900.00
Chair Couch 3,900.00
Floormat 15,750.00
Couch 20,000.00
Office Door 2,200.00
Table 900.00
File Drawer 1,400.00
Total Price 54,025.00

NOTE 7 - OFFICE EQUIPMENT

Printer 22,050.00
Computer Set 17,101.00
CCTV 28,000.00
Surveillance Camera
Total Price 67,151.00

NOTE 8 - LEASEHOLD IMPROVEMENT

Plywood 4,500.00
Paint 3,750.00
Brush 1,500.00
Paint Roller 1,600.00
Soap Dispenser 2,200.00
Tissue Dispenser 3,150.00
Water Dispenser 5,000.00
Total Price 21,700.00

NOTE 9 -RAW MATERIALS

Sticky Rice 80,640.00
Condense 161,280.00
Cheese 96,768.00
Oil 45,696.00
Evaporated Milk 40,320.00
Lumpia Wrapper 147,840.00
Total Price 241,920.00
2024 2025

500.00 500.00

400.00 400.00
800.00 800.00
500.00 500.00
5,000.00 5,000.00
100.00 100.00
7,300.00 7,300.00

813.96 830.24
979.20 998.78
1,530.00 1,560.60
2,203.20 2,247.26
1,334.16 1,360.84

6,860.52 6,997.73

6,885.00 7,022.70
2,937.60 2,996.35
918.00 936.36
367.20 374.54
612.00 624.24
127.50 130.05
91.80 93.64
11,939.10 12,177.88

5,000.00 5,000.00
12 12
60,000.00 60,000.00
 3,060.00 3,121.20
2,040.00 2,080.80
550.00 550.00
5,650.00 5,752.00
12 12
67,800.00 69,024.00

2,000.00 2,000.00
5,400.00 5,400.00
1,575.00 1,575.00
900.00 900.00
3,900.00 3,900.00
15,750.00 15,750.00
20,000.00 20,000.00
2,200.00 2,200.00
900.00 900.00
1,400.00 1,400.00
54,025.00 54,025.00

22,050.00 22,050.00
17,101.00 17,101.00
28,000.00 28,000.00

67,151.00 67,151.00

4,500.00 4,500.00
3,750.00 3,750.00
1,500.00 1,500.00
1,600.00 1,600.00
2,200.00 2,200.00
3,150.00 3,150.00
5,000.00 5,000.00
21,700.00 21,700.00

82,252.80 83,897.86
360.00 360.00
82,612.80 84,257.86
NOTES TO INCOME STATEMENT 2020
NOTE 1 - SALES
Number of Units Sold Annually 80,640
PRICE OF PRODUCT 1,612,800.00
Grand Total 130,056,192,000.00
Less: 12% Inclusive Output Tax (VAT) 13,934,592,000.00
SALES 116,121,600,000.00

NOTE 2 - COST OF GOODS SOLD

Finished Good Inventory - Beginning -
Add: Cost of Goods Manufactured (See Schdule 5) 6,075,319,750.47
Cost of Goods Available for Sale 6,075,319,750.47
Less: Finished Goods Inventory - Ending 303,765,987.52
COST OF GOODS SOLD 5,771,553,762.95

NOTE 3 - TAXES AND LICENSES

Reservation Fee 5,000.00
Filling Fee 3,000.00
Registration Fee 500.00
Notarize Articles of Incorporation and Affidavit 250.00
BIR Annual Registration Fee 500.00
Documentary Stamp Tax 100.00
Book of Accounts 600.00
Barangay Business Clearance 800.00
Community Tax Permit 500.00
Mayor's Busines Permit 5,000.00
Notary Business Permit Form 100.00
TAXES AND LICENSES EXPENSE 16,350.00

NOTE 4 - CLEANING SUPPLIES EXPENSES

Mop Spinner 798.00
Broom & Dustpan 960.00
Liquid Detergent 1,500.00
Hand Soap 2,160.00
Tissue 1,308.00
Trash Bag 900.00
Trash Bin 450.00
Feather Duster 76.00
CLEANSING SUPPLIES EXPENSE 7,626.00
NOTE 5 - OFFICE SUPPLIES EXPENSE
Bond Paper 6,750.00
Printer's Ink 2,880.00
Staple Wires 900.00
Stapler 360.00
Calculator 600.00
Pen 125.00
Record Book 90.00
OFFICE SUPPLIES EXPENSE 11,705.00

NOTE 6 - ADVERTISING AND PROMOTIONS EXPENSE

Flyers 12,500.00
Tradeshow Expenses 50,000.00
ADVERTISING AND PROMOTIONS EXPENSE 62,500.00

NOTE 7 -RENT EXPENSE

Monthly Rent 5,000
Number of Months in a Year 12
RENT EXPENSE 60,000.00

NOTE 8 -UTILITIES EXPENSE

Monthly Electricity 3,000.00
Monthly Water 2,000.00
Monthly Landline and Internet 1,500.00
Total Monthly Utilities 6,500.00
Number of Months in a Year 12
UTILITIES EXPENSE 78,000.00

NOTE 9 -DEPRECIATION EXPENSE - FURNITURE AND FIXTURES

Office Table 2,000.00
Offcie Chair 5,400.00
Room Lights 1,575.00
Vase 900.00
Chair Couch 3,900.00
Floormat 15,750.00
Couch 20,000.00
Office Door 2,200.00
Table 900.00
File Drawer 1,400.00
Total Price 54,025.00
Less: Salvage Value 5% 2,701.25
Depreciable Amount 51,323.75
Useful Number of Years 5
DEPRECIATION - FURNITURES AND FIXTURES 10,264.75
NOTE 10 -DEPRECIATION EXPENSE - OFFICE EQUIPMENT
Printer 22,050.00
Computer Set 17,101.00
CCTV 28,000.00
Surveillance Camera
Total Price 67,151.00
Less: Salvage Value 5% 3,357.55
Depreciable Amount 63,793.45
Useful Number of Years 5
DEPRECIATION - OFFICE EQUIPMENT 12,758.69

NOTE 11 -DEPRECIATION EXPENSE - LEASEHOLD IMPROVEMENT

Plywood 4,500.00
Paint 3,750.00
Brush 1,500.00
Paint Roller 1,600.00
Soap Dispenser 2,200.00
Tissue Dispenser 3,150.00
Water Dispenser 5,000.00
Total Price 21,700.00
Less: Salvage Value 5% 1,085.00
Depreciable Amount 20,615.00
Useful Number of Years 10
DEPRECIATION - LEASEHOLD IMPROVEMENT 2,061.50

NOTE 12 -DEPRECIATION EXPENSE - DELIVERY EQUIPMENT

Fton MultiCab Pick-Up 95,000.00
Total Price 95,000.00
Less: Salvage Value 5% 4,750.00
Depreciable Amount 90,250.00
Useful Number of Years 10
DEPRECIATION - FURNITURES AND FIXTURES 9,025.00

NOTE 13 - SSS AND EC PREMIUM EXPENSE

SSS Employer's Share (Payroll) 8,400.00
EC Emplyer's Share (Payroll) 360.00
SSs and EC Premiums Expense 8,760.00

NOTE 14 - PHILHEALTH PREMIUMS EXENSE

Employer's Share (Payroll) 10,560.00
Philhealth Premiums Expense 10,560.00

NOTE 15 - PAGIBIG PREMIUMS EXPENSE

Employer's Share (Payroll) 6,600.00
 PAGIBIG Premiums Expense 6,600.00

NOTE 16 - 13 Month Pay

Production Staff 1 13,312.00
Production Staff 2 13,312.00
Production Staff 3 13,312.00
Production Staff 4 13,312.00
Production Staff 5 13,312.00
13th month pay 66,560.00

NOTE 17 - INTEREST INCOME

Cash in Bank Balance Deposited 1,879,335.44
Multiply: Annual Bank Interest Rate 0.25%
Total Income 4,698.3
Less: 20% withholding tax 939.67
Interest Income 3,758.67
 2021 2022

84,672 88,906
1,645,056.00 1,677,957.12
139,290,181,632.00 149,179,784,527.87
14,923,948,032.00 15,983,548,342.27
124,366,233,600.00 133,196,236,185.60

303,765,987.52 341,353,484.35
6,523,303,699.52 6,986,402,851.95
6,827,069,687.05 7,327,756,336.30
341,353,484.35 366,387,816.82
6,485,716,202.69 6,961,368,519.49

500.00 500.00

400.00 400.00
800.00 800.00
500.00 500.00
5,000.00 5,000.00
100.00 100.00
7,300.00 7,300.00

813.96 830.24
979.20 998.78
1,530.00 1,560.60
2,203.20 2,247.26
1,334.16 1,360.84

6,860.52 6,997.73
 6,885.00 7,022.70
2,937.60 2,996.35
918.00 936.36
367.20 374.54
612.00 624.24
127.50 130.05
91.80 93.64
11,939.10 12,177.88

12,500.00 12,500.00

12,500.00 12,500.00

5,000.00 5,000.00
12 12
60,000.00 60,000.00

3,060.00 3,121.20
2,040.00 2,080.80
550.00 550.00
5,650.00 5,752.00
12 12
67,800.00 69,024.00

2,000.00 2,000.00
5,400.00 5,400.00
1,575.00 1,575.00
900.00 900.00
3,900.00 3,900.00
15,750.00 15,750.00
20,000.00 20,000.00
2,200.00 2,200.00
900.00 900.00
1,400.00 1,400.00
54,025.00 54,025.00
2,701.25 2,701.25
51,323.75 51,323.75
5 5
10,264.75 10,264.75
22,050.00 22,050.00
17,101.00 17,101.00
28,000.00 28,000.00

67,151.00 67,151.00
3,357.55 3,357.55
63,793.45 63,793.45
5 5
12,758.69 12,758.69

4,500.00 4,500.00
3,750.00 3,750.00
1,500.00 1,500.00
1,600.00 1,600.00
2,200.00 2,200.00
3,150.00 3,150.00
5,000.00 5,000.00
21,700.00 21,700.00
1,085.00 1,085.00
20,615.00 20,615.00
10 10
2,061.50 2,061.50

95,000.00 95,000.00
95,000.00 95,000.00
4,750.00 4,750.00
90,250.00 90,250.00
10 10
9,025.00 9,025.00

8,568.00 8,739.36
360.00 360.00
8,928.00 9,099.36

10,771.20 10,986.62
10,771.20 10,986.62 SSS, PHILHEALTH, PAGIBIG ARE GOOD FOR ONE MONTH

6,600.00 6,600.00
 6,600.00 6,600.00

13,578.24 13,849.80
13,578.24 13,849.80
13,578.24 13,849.80
13,578.24 13,849.80
13,578.24 13,849.80
67,891.20 69,249.02

1,966,583.11 2,140,197.57
0.25% 0.25%
4,916.5 5,350.5
983.29 1,070.10
3,933.17 4,280.40
ONE MONTH
 2024

NOTES TO BALANCE SHEET

NOTE 18 - PREPAID RENT

2 Month Rental in Advance 10,000.00
1 Month Rental in Advance 5,000.00
PREPAID RENT 15,000.00

NOTE 19 - RAW MATERIALS INVENTORY

Beginning raw Materials -
Add: Purchased Raw Materials (5%) 6,395,496,156.00
Total Raw Materials Available for Production 6,395,496,156.00
Less: Raw Materials Placed For Production (Schedule 1) 6,090,948,720.00
RAW MATERIALS INVENTORY 304,547,436.00

NOTE 20 - CONSTRUCTION EQUIPMENT (NET)

Drill 6,750.00
Hammer 305.00
Saw 290.00
Screw 249.00
Torscrew 360.00
Hook 100.00
Nails 106.00
Total Price 8,160.00
Less: Accumulated Depreciation -
Less: Current Year's Depreciation 10,302.47
CONSTRUCTION EQUIPMENT (NET) - 2,142.47

NOTE 21 - FURNITURE AND FIXTURES (NET)

Office Table 2,699.00
Office Chair 1,899.00
LED Lights 499.00
Floormat 15,750.00
Couch 20,000.00
File Drawer 1,805.00
Total Price 42,652.00
Less: Accumulated Depreciation -
Less: Current Year's Depreciation 22,050.00
FURNITURE AND FIXTURES (NET) 20,602.00

NOTE 22 - OFFICE EQUIPMENT (NET)

 Printer 13,795.00
Computer Set 14,225.00
Surveillance Camera 6,102.00
CCTV 8,000.00
Total Price 42,122.00
Less: Accumulated Depreciation -
Less: Current Year's Depreciation 1,600.00
OFFICE EQUIPMENT (NET) 40,522.00

NOTE 23 - LEASEHOLD IMPROVEMENT (NET)

Varnish 450.00
Dried 2×2 Wood 659.00
Plywood 1,599.00
Cement 245.00
Paint 1,508.00
Brush 192.00
Paint Roller 220.00
Kitchen Sink 3,599.00
Soap Dispenser 100.00
Tissue Dispenser 95.00
Water Dispenser 250.00
Thinner 4,000.00
Total Price 12,917.00
Less: Accumulated Depreciation -
Less: Current Year's Depreciation 8,400.00
LEASEHOLD IMPROVEMENT (NET) 4,517.00

NOTE 24 - DELIVERY EQUIPMENT

Fton MultiCab Pick-Up 95,000.00
Total Price 95,000.00
Less: Accumulated Depreciation -
Less: Current Year's Depreciation -
LEASEHOLD IMPROVEMENT (NET) 95,000.00

NOTE 25 - SALATIES PAYABLE

Production Staff 1 204,960.00
Production Staff 2 204,960.00
Production Staff 3 204,960.00
Production Staff 4 204,960.00
Production Staff 5 204,960.00
SALARIES PAYABLE 1,024,800.00

NOTE 26 - UTILITIES PAYABLE

Monthly Electricity 1,500.00
Monthly Water 800.00
 Monthly Landline and Internet 550.00
Monthly Security Fees 450.00
UTILITIES PAYABLE 3,300.00

NOTE 27 - SSS AND EC PREMIUMS PAYABLE

SSS EMPLOYEE'S SHARE (Payroll) 3,488.00
SSS Employer's Share (Payroll) 7,072.00
EC Emplyer's Share (Payroll) 90.00
SSS AND EC PREMIUMS EXPENSE 10,650.00

NOTE 28 - PHILHEALTH PREMIUMS PAYABLE

EMPLOYEE'S SHARE (Payroll) 1,304.49
Employer's Share (Payroll) 1,304.49
PHILHEALTH PREMIUMS EXPENSE 2,608.98

NOTE 29 - PAGIBIG PREMIUMS PAYABLE

EMPLOYEE'S SHARE (Payroll) 700.00
Employer's Share (Payroll) 700.00
PHILHEALTH PREMIUMS EXPENSE 1,400.00

NOTE 30 - VAT PAYABLE

OUTPUT Tax from Sales 13,934,592,000.00
Less: Input Tax from Cost of Goods Sold 730,913,846.40
VAT Payable of the Current Year 13,203,678,153.60

VAT Payable of the Current Year -

Add: VAT Payable from the Previous year 13,203,678,153.60
Less: Portion Paid (75%) 9,902,758,615.20
VAT Payable 3,300,919,538.40

NOTE 31 - INCOME TAX PAYABLE

Income Tax of the Current Year - 527,052.13
Income Tax of the Previous Year -
Less: Portion Paid (75%) - 395,289.10
Income Tax Payable: - 131,763.03
 2021 2022

50,000.00 50,000.00
25,000.00 25,000.00
75,000.00 75,000.00

304,547,436.00 326,170,303.96
6,545,028,947.08 7,009,726,002.32
6,849,576,383.08 7,335,896,306.27
6,523,406,079.12 6,986,567,910.74
326,170,303.96 349,328,395.54

18,310.00 18,310.00
1,199.75 1,199.75
4,399.00 4,399.00
8,970.00 8,970.00
345.00 345.00
3,599.75 3,599.75
4,800.00 4,800.00
41,623.50 41,623.50
10,302.47 20,604.93
10,302.47 10,302.47
21,018.57 10,716.11

2,000.00 2,000.00
5,400.00 5,400.00
1,575.00 1,575.00
15,750.00 15,750.00
20,000.00 20,000.00
1,400.00 1,400.00
46,125.00 46,125.00
22,050.00 44,100.00
22,050.00 22,050.00
2,025.00 - 20,025.00
 22,050.00 22,050.00
17,101.00 17,101.00
15,000.00 15,000.00
28,000.00 28,000.00
82,151.00 82,151.00
1,600.00 3,200.00
1,600.00 1,600.00
78,951.00 77,351.00

2,400.00 2,400.00
1,900.00 1,900.00
4,500.00 4,500.00
3,300.00 3,300.00
3,750.00 3,750.00
1,500.00 1,500.00
1,600.00 1,600.00
4,160.00 4,160.00
2,200.00 2,200.00
3,150.00 3,150.00
5,000.00 5,000.00
4,000.00 4,000.00
37,460.00 37,460.00
8,400.00 16,800.00
8,400.00 8,400.00
20,660.00 12,260.00

95,000.00 95,000.00
95,000.00 95,000.00
- -
- -
95,000.00 95,000.00

209,059.20 213,240.38
209,059.20 213,240.38
209,059.20 213,240.38
209,059.20 213,240.38
209,059.20 213,240.38
1,045,296.00 1,066,201.92 2,049,600.00 2,090,592.00 2,132,403.84
40,992.00 41,811.84

1,530.00 1,560.60
816.00 832.32
 561.00 572.22
459.00 468.18
3,366.00 3,433.32

3,506.20 3,615.40
7,108.80 7,329.60
90.00 90.00
10,705.00 11,035.00

1,330.58 1,357.19
1,330.58 1,357.19
2,661.16 2,714.38

700.00 700.00
700.00 700.00
1,400.00 1,400.00

### 15,983,548,342.27
782,808,729.49 838,388,149.29
### 15,145,160,192.98

3,300,919,538.40 3,535,284,825.63
### 15,145,160,192.98
### 14,894,154,970.36
3,535,284,825.63 3,786,290,048.25

### 37,869,799,364.80
- 131,763.03 8,840,886,646.93
### 37,243,236,170.53 28,402,349,523.60
8,840,886,646.93 9,467,449,841.20 - 395,289.10 37,243,236,170.53
###
###
 SSS
EMPLOYEE MONTHLY SALARY
EE
Production Staff 1 4,000.00 180.00
Production Staff 2 4,000.00 180.00
Production Staff 3 4,000.00 180.00
Production Staff 4 4,000.00 180.00
Production Staff 5 4,000.00 180.00
Production Staff 6 4,000.00 180.00
Production Staff 7 4,000.00 180.00
Production Staff 8 4,000.00 180.00
Production Staff 9 4,000.00 180.00
Production Staff 10 4,000.00 180.00
Production Staff 11 4,000.00 180.00
TOTAL MONTHLY 44,000.00 -
FOR TWO MONTHS 88,000.00 -
FOR THREE MONTHS 132,000.00 -
FOR FOUR MONTHS 176,000.00 -
ANNUALLY 528,000.00 -

2020 2021
PRODUCTION MONTHLY SALARY 79,872.00 81,469.44
PRODUCTION THREE MONTH SALARY 239,616.00 244,408.32
PRODUCTION ANNUAL SALARY 958,464.00 977,633.28

EMPLOYEES MONTHLY BENEFITS 7,725.24 7,879.74

PRODUCTION THREE MONTH SALARY 23,175.72 23,639.23
EMPLOYEES ANNUAL BENEFITS 92,702.88 94,556.94
 SSS PHILHEALTH PAGIBIG
ER EC TOTAL ER EE TOTAL ER
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
380.00 10.00 570.00 80.00 80.00 160.00 50.00
700.00 700.00 1,400.00 880.00 880.00 1,760.00 550.00
1,400.00 1,400.00 2,800.00 1,760.00 1,760.00 3,520.00 1,100.00
2,100.00 2,100.00 4,200.00 2,640.00 2,640.00 5,280.00 1,650.00
2,800.00 2,800.00 5,600.00 3,520.00 3,520.00 7,040.00 2,200.00
8,400.00 8,400.00 16,800.00 10,560.00 10,560.00 21,120.00 6,600.00

2022
83,098.83
249,296.49
997,185.95

8,037.34
24,112.02
96,448.08
PAGIBIG TOTAL DEDUCTION NET PAY
EE TOTAL
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
50.00 100.00 830.00 3,170.00
550.00 1,100.00 9,130.00 34,870.00
1,100.00 2,200.00 18,260.00 69,740.00
1,650.00 3,300.00 27,390.00 104,610.00
2,200.00 4,400.00 36,520.00 139,480.00
6,600.00 13,200.00 109,560.00 418,440.00
 2020 2021
FIXED COST
SELLING AND ADMINISTRATIVE EXPENSES 2,160,040.44 2,028,771.55

VARIABLE COST
Direct Materials Over Units Produced 75,532.60 77,043.25
Direct Labor Over Units Produced 1,501.67 12.66
Manufacturing Overhead Over Units Produced 14.72 14.72
Total Variable Cost 77,048.98 77,070.63

Selling Price 19,000.00 19,000.00

Less: Variable Cost 77,048.98 77,070.63
Gross Margin Per Unit - 58,048.98 - 58,070.63

Total Selling and Administrative Expenses 2,160,040.44 2,028,771.55

Divided by Gross Margin per unit - 58,048.98 - 58,070.63
Break Even in Units (37) (35)

Break Even in Units (37) (35)

Multiply by Selling Price 19,000.00 19,000.00
Break Even in Peso - 707,002.37 - 663,789.23
 2022

2,203,116.78

78,584.12
12.30
14.72
78,611.13

19,000.00
78,611.13
- 59,611.13

2,203,116.78
- 59,611.13
(37)

(37)
19,000.00
- 702,204.70