Financial Plan

Financial
Plan
103
A. ASSUMPTIONS
1. The business will operate seven (7) days a week; four (4) weeks in a month;
eleven (11) hours a day.
2. No loans will be contracted.
3. All sales and purchases are on cash basis.
4. The business will not incur any borrowings.
5. All goods will be sold at the end of the day/period.
6. No inventory end and no inventory at the beginning.
7. An increase of 10% on sales and price on 2015 and 2016.
8. Rent will increase by 10% on 2015 and 15% on 2016.
9. Salaries will increase by 10% in 2015 and 15% in 2016
10. A 10% increase on 2015 and 18% in 2016 on cost of goods sale and expenses
are assumed due to inflation of prizes.
11. Bank deposit is at 5,000.00.
12. Payback period is at 23.71 days or 24 days.
13. The business will be located at Ever Recto.
B. PROJECTION COST AND ALLOCATION OF FUNDS
The proposed project will have an estimated cost of one hundred thirty thousand
five hundred pesos. (130,500.00)
Organizational Expense
Registration Fee
Promotional Expense
Total Organizational Expense
Php
1,300.00
1,000.00
2,300.00
Capital Investment
Purchase of:
Counter of Cakes
Convection Oven
Electric Mixer
Top Freezer Fridge
Total Capital Investment
45,000.00
18,000.00
3,480.00
2,500.00
68,980.00
Renovation of work area

Purchase of:
Paint
Fluorescent light
Signboard
Ballast
Starter
Labor cost
Total Renovation of work area
Schedule 1
1800.00
420.00
1200.00
300.00
75.00
500.00
4295.00
48,874.27
Bank Deposit
5,000.00
TOTAL
129.449.27
The difference of 130,500.00 and 129,449.27 amounting to 1,050.73 will be Petty

Cash.
104
C. FINANCING PLAN / SOURCING OF FUNDS

Partners
Contribution
Angelo Anton
14,500.00
Maura Dao
14,500.00
Keely Lutero
14,500.00
John Michael Paguio
14,500.00
Christine Carla Puno
14,500.00
Rutchel Quijano
14,500.00
Angelica Tantay
14,500.00
Dorothy Joyce Uy
14,500.00
Stephanie Kirsten Velarde
14,500.00
TOTAL
130,500.00
Schedule 1
Working Capital
Direct Materials
Carob Powder
All-Purpose Flour
Baking Soda
Salt
White Sugar
Vanilla Extract
Vegetable Oil
Water
All - Purpose Cream
Semi- Sweet Chocolate Kisses
Sprinkle Semi- Sweet Chocolate Kisses
Sprinkle White Chocolate Kisses
White Chocolate Kisses
Sprinkle Strawberry Chocolate Kisses
Sprinkle Strawberry Kisses
Flavouring Strawberry
Nescafe Coffee
Sprinkle Nescafe Coffee
Confectioner
Total Direct Material
2,900.80
2,721.60
24.64
0.56
1,321.60
1,120.00
823.20
53.20
564.48
571.20
35.84
73.92
1,790.88
57.96
36.96
182.00
13.44
13.44
14.00
12,319.72
105
Indirect materials
Gloves
840.00
Hairnet
Total Indirect materials
Packaging
Box
Cake Board
560.00
1,400.00
29,120.00
11,200.00
Label
Total Packaging and Label
Office Supplies
Record Book
Ballpen
7,481.60
47,801.60
96.00
10.00
Calculator
Total Office Supplies
Cleaning Supplies
Dishwashing Liquid
Sponge
Rug
Broom
400.00
506.00
Dustpan
Total Cleaning Supplies
Direct Labor
Baker 1
35.00
124.00
17.00
32.00
5.00
35.00
3,733.31
Baker 2
Total Direct Labor
Indirect Labor
General Manager
Production Head
Finance Head
3,733.31
7,466.62
Marketing Head
Total Indirect Labor
Payment of Utilities
Transportation
2,333.31
9,799.93
2,700.00
64.00
2,800.00
2,333.31
2,333.31
Rent
Total Working Capital
16,400.00
48,874.27
106
D. FINANCIAL PROJECTIONS
D.1 Projected Statement of Comprehensive Income
Carob Craze
Long -Term Projected Income Statement
For the Years Ended December 31, 2014, 2015 and 2016
2014
Sales**
Php
2015
2016
3,880,800.00
4,268,880.00
6,476,358.50
Less: Cost of Goods Sold
1,096,653.60
1,368,939.26
1,411,629.25
Gross Profit
2,784,146.40
2,899,940.74
5,064,729.26
Less: Operating Expenses
733,217.97
801,710.44
919,862.03
Operating Profits
2,050,928.43
2,098,230.30
4,144,867.23
Less: Taxes (30%)
615,278.53
629,469.09
1,243,460.17
Net Income After Tax
1,435,649.90
1,468,761.21
2,901,407.06
** See Sales projection from 20142016
107
2014 Chocolate Carob Kisses Sales Projection
No. of Units
Produce /
week
Total no. of
units
produces /
month
Months
No. of Units
Produce / Day
January
63
441
1,764
85.00
149,940.00
February
63
441
1,764
85.00
149,940.00
March
63
441
1,764
85.00
149,940.00
April
63
441
1,764
85.00
149,940.00
May
63
441
1,764
85.00
149,940.00
June
63
441
1,764
85.00
149,940.00
July
63
441
1,764
85.00
149,940.00
August
63
441
1,764
85.00
149,940.00
September
63
441
1,764
85.00
149,940.00
October
63
441
1,764
85.00
149,940.00
November
63
441
1,764
85.00
149,940.00
December
63
441
1,764
85.00
149,940.00
756
5,292
21,168
1,020.00
1,799,280.00
TOTAL
108
Price
Total Sales
2014 White Chocolate Carob Kisses Sales Projection
No. of Units
Produce /
week
Total no. of
units produces
/ month
Months
No. of Units
Produce / Day
January
19
133
532
85.00
45,220.00
February
19
133
532
85.00
45,220.00
March
19
133
532
85.00
45,220.00
April
19
133
532
85.00
45,220.00
May
19
133
532
85.00
45,220.00
June
19
133
532
85.00
45,220.00
July
19
133
532
85.00
45,220.00
August
19
133
532
85.00
45,220.00
September
19
133
532
85.00
45,220.00
October
19
133
532
85.00
45,220.00
November
19
133
532
85.00
45,220.00
December
19
133
532
85.00
45,220.00
228
1,596
6,384
1,020.00
542,640.00
TOTAL
109
Price
Total Sales
2014 Strawberry Carob Kisses Sales Projection
No. of Units
Produce /
week
Total no. of
units
produces /
month
Months
No. of Units
Produce / Day
January
30
210
840
95.00
79,800.00
February
30
210
840
95.00
79,800.00
March
30
210
840
95.00
79,800.00
April
30
210
840
95.00
79,800.00
May
30
210
840
95.00
79,800.00
June
30
210
840
95.00
79,800.00
July
30
210
840
95.00
79,800.00
August
30
210
840
95.00
79,800.00
September
30
210
840
95.00
79,800.00
October
30
210
840
95.00
79,800.00
November
30
210
840
December
30
210
840
TOTAL
360
2,520
110
10,080
Price
95.00
Total Sales
79,800.00
95.00
79,800.00
1,140.00
957,600.00
2014 Original Carob Sales Projection
No. of Units
Produce /
week
Total no. of
units
produces /
month
Months
No. of Units
Produce / Day
January
21
147
588
50
29400
February
21
147
588
50
29400
March
21
147
588
50
29400
April
21
147
588
50
29400
May
21
147
588
50
29400
June
21
147
588
50
29400
July
21
147
588
50
29400
August
21
147
588
50
29400
September
21
147
588
50
29400
October
21
147
588
50
29400
November
21
147
588
50
29400
December
21
147
588
50
29400
252
1,764
TOTAL
111
7,056
Price
600.00
Total Sales
352,800.00
2014 Coffee Flavored Carob Sales Projection
Months
No. of Units
Produce /
Month
No. of Units
Produce / week
Total no. of
units produces
/ month
Price
Total Sales
January
27
189
756
85.00
64,260.00
February
27
189
756
85.00
64,260.00
March
27
189
756
85.00
64,260.00
April
27
189
756
85.00
64,260.00
May
27
189
756
85.00
64,260.00
June
27
189
756
85.00
64,260.00
July
27
189
756
85.00
64,260.00
August
27
189
756
85.00
64,260.00
September
27
189
756
85.00
64,260.00
October
27
189
756
85.00
64,260.00
November
27
189
756
85.00
64,260.00
December
27
189
756
85.00
64,260.00
324
2,268
9,072
1,020.00
771,120.00
TOTAL
112
Months
No. of
Units
Produce /
Day
January
63
6.30
485.10
1,940.40
93.50
181,427.40
February
63
6.30
485.10
1,940.40
93.50
181,427.40
March
63
6.30
485.10
1,940.40
93.50
181,427.40
April
63
6.30
485.10
1,940.40
93.50
181,427.40
May
63
6.30
485.10
1,940.40
93.50
181,427.40
June
63
6.30
485.10
1,940.40
93.50
181,427.40
July
63
6.30
485.10
1,940.40
93.50
181,427.40
August
63
6.30
485.10
1,940.40
93.50
181,427.40
September
63
6.30
485.10
1,940.40
93.50
181,427.40
October
63
6.30
485.10
1,940.40
93.50
181,427.40
November
63
6.30
485.10
1,940.40
93.50
181,427.40
December
63
6.30
485.10
1,940.40
93.50
181,427.40
756
75.60
TOTAL
10%
Increase in
the daily
production
No. of Units
Produce /
week
5,821.20
113
Total no. of
units
produces /
month
23,284.80
Price
1,122.00
Total Sales
2,177,128.80
Months

No. of
10%
Total no. of
No. of Units
Units
Increase in
units
Produce /
Price
Produce /
the daily
produces /
week
Day
production
month
Total Sales
January
19
1.90
146.30
585.20
93.50
54,716.20
February
19
1.90
146.30
585.20
93.50
54,716.20
March
19
1.90
146.30
585.20
93.50
54,716.20
April
19
1.90
146.30
585.20
93.50
54,716.20
May
19
1.90
146.30
585.20
93.50
54,716.20
June
19
1.90
146.30
585.20
93.50
54,716.20
July
19
1.90
146.30
585.20
93.50
54,716.20
August
19
1.90
146.30
585.20
93.50
54,716.20
September
19
1.90
146.30
585.20
93.50
54,716.20
October
19
1.90
146.30
585.20
93.50
54,716.20
November
19
1.90
146.30
585.20
93.50
54,716.20
December
19
1.90
146.30
585.20
93.50
54,716.20
228
22.80
1,755.60
7,022.40
TOTAL
114
1,122.00
656,594.40

Months
No. of
Units
Produce /
Day
January
30
3.00
231.00
924.00
104.50
96,558.00
February
30
3.00
231.00
924.00
104.50
96,558.00
March
30
3.00
231.00
924.00
104.50
96,558.00
April
30
3.00
231.00
924.00
104.50
96,558.00
May
30
3.00
231.00
924.00
104.50
96,558.00
June
30
3.00
231.00
924.00
104.50
96,558.00
July
30
3.00
231.00
924.00
104.50
96,558.00
August
30
3.00
231.00
924.00
104.50
96,558.00
September
30
3.00
231.00
924.00
104.50
96,558.00
October
30
3.00
231.00
924.00
104.50
96,558.00
November
30
3.00
231.00
924.00
104.50
96,558.00
December
30
3.00
231.00
924.00
104.50
96,558.00
360
36.00
TOTAL
10%
Increase in
the daily
production
No. of Units
Produce /
week
2,772.00
115
Total no. of
units
produces /
month
11,088.00
Price
1,254.00
Total Sales
1,158,696.00
2015 Coffee Flavored Carob Sales Projection

Months
No. of
Units
Produce /
Month
January
27
2.70
207.90
831.60
93.50
77,754.60
February
27
2.70
207.90
831.60
93.50
77,754.60
March
27
2.70
207.90
831.60
93.50
77,754.60
April
27
2.70
207.90
831.60
93.50
77,754.60
May
27
2.70
207.90
831.60
93.50
77,754.60
June
27
2.70
207.90
831.60
93.50
77,754.60
July
27
2.70
207.90
831.60
93.50
77,754.60
August
27
2.70
207.90
831.60
93.50
77,754.60
September
27
2.70
207.90
831.60
93.50
77,754.60
October
27
2.70
207.90
831.60
93.50
77,754.60
November
27
2.70
207.90
831.60
93.50
77,754.60
December
27
2.70
207.90
831.60
93.50
77,754.60
324
32.40
TOTAL
10%
Increase in
the daily
production
No. of Units
Produce /
week
2,494.80
116
Total no. of
units
produces /
month
9,979.20
Price
1,122.00
Total Sales
933,055.20

Months
No. of Units
Produce /
Day
10%
Increase in
the daily
production
January
69.30
6.93
533.61
2,134.44
102.85
219,527.15
February
69.30
6.93
533.61
2,134.44
102.85
219,527.15
March
69.30
6.93
533.61
2,134.44
102.85
219,527.15
April
69.30
6.93
533.61
2,134.44
102.85
219,527.15
May
69.30
6.93
533.61
2,134.44
102.85
219,527.15
June
69.30
6.93
533.61
2,134.44
102.85
219,527.15
July
69.30
6.93
533.61
2,134.44
102.85
219,527.15
August
69.30
6.93
533.61
2,134.44
102.85
219,527.15
September
69.30
6.93
533.61
2,134.44
102.85
219,527.15
October
69.30
6.93
533.61
2,134.44
102.85
219,527.15
November
69.30
6.93
533.61
2,134.44
102.85
219,527.15
December
69.30
6.93
533.61
2,134.44
102.85
219,527.15
TOTAL
831.6
83.16
25,613.28
1,234.20
No. of Units
Produce /
week
6,403.32
117
Total no. of
units
produces /
month
Price
Total Sales
2,634,325.85
Months
No. of Units
Produce /
Day
10%
Increase in
the daily
production
January
20.90
2.09
160.93
February
20.90
2.09
March
20.90
April
No. of Units
Produce /
week
Total no. of
units
produces /
month
Price
Total Sales
643.72
102.85
66,206.60
160.93
643.72
102.85
66,206.60
2.09
160.93
643.72
102.85
66,206.60
20.90
2.09
160.93
643.72
102.85
66,206.60
May
20.90
2.09
160.93
643.72
102.85
66,206.60
June
20.90
2.09
160.93
643.72
102.85
66,206.60
July
20.90
2.09
160.93
643.72
102.85
66,206.60
August
20.90
2.09
160.93
643.72
102.85
66,206.60
September
20.90
2.09
160.93
643.72
102.85
66,206.60
October
20.90
2.09
160.93
643.72
102.85
66,206.60
November
20.90
2.09
160.93
643.72
102.85
66,206.60
December
20.90
2.09
160.93
643.72
102.85
66,206.60
TOTAL
250.80
25.08
1,931.16
7,724.64
1,234.20
794,479.22
118
Months
No. of
Units
Produce /
Day
January
33.00
3.30
254.10
1,016.40
114.95
116,835.18
February
33.00
3.30
254.10
1,016.40
114.95
116,835.18
March
33.00
3.30
254.10
1,016.40
114.95
116,835.18
April
33.00
3.30
254.10
1,016.40
114.95
116,835.18
May
33.00
3.30
254.10
1,016.40
114.95
116,835.18
June
33.00
3.30
254.10
1,016.40
114.95
116,835.18
July
33.00
3.30
254.10
1,016.40
114.95
116,835.18
August
Septembe
r
33.00
3.30
254.10
1,016.40
114.95
116,835.18
33.00
3.30
254.10
1,016.40
114.95
116,835.18
October
33.00
3.30
254.10
1,016.40
114.95
116,835.18
November
33.00
3.30
254.10
1,016.40
114.95
116,835.18
December
33.00
3.30
254.10
1,016.40
114.95
116,835.18
12,196.80
1,379.40
1,402,022.16
TOTAL
396.00
10%
Increase
in the daily
production
39.60
No. of
Units
Produce /
week
3,049.20
119
Total no. of
units
produces /
month
Price
Total Sales
Months
No. of
Units
Produce /
Day
2016 Original Carob Sales Projection

10%
Total no. of
No. of Units
Increase in
units
Produce /
the daily
produces /
week
production
month
Price
Total Sales
January
23.10
2.31
177.87
711.48
60.50
43,044.54
February
23.10
2.31
177.87
711.48
60.50
43,044.54
March
23.10
2.31
177.87
711.48
60.50
43,044.54
April
23.10
2.31
177.87
711.48
60.50
43,044.54
May
23.10
2.31
177.87
711.48
60.50
43,044.54
June
23.10
2.31
177.87
711.48
60.50
43,044.54
July
23.10
2.31
177.87
711.48
60.50
43,044.54
August
23.10
2.31
177.87
711.48
60.50
43,044.54
September
23.10
2.31
177.87
711.48
60.50
43,044.54
October
23.10
2.31
177.87
711.48
60.50
43,044.54
November
23.10
2.31
177.87
711.48
60.50
43,044.54
December
23.10
2.31
177.87
711.48
60.50
43,044.54
TOTAL
277
27.72
726.00
516,534.48
2,134.44
120
8,537.76
Months

10%
Total no. of
No. of Units
No. of Units
Increase in
units
Produce /
Produce /
the daily
produces /
Day
week
production
month
Price
Total Sales
January
69.30
6.93
533.61
2,134.44
102.85
219,527.15
February
69.30
6.93
533.61
2,134.44
102.85
219,527.15
March
69.30
6.93
533.61
2,134.44
102.85
219,527.15
April
69.30
6.93
533.61
2,134.44
102.85
219,527.15
May
69.30
6.93
533.61
2,134.44
102.85
219,527.15
June
69.30
6.93
533.61
2,134.44
102.85
219,527.15
July
69.30
6.93
533.61
2,134.44
102.85
219,527.15
August
69.30
6.93
533.61
2,134.44
102.85
219,527.15
September
69.30
6.93
533.61
2,134.44
102.85
219,527.15
October
69.30
6.93
533.61
2,134.44
102.85
219,527.15
November
69.30
6.93
533.61
2,134.44
102.85
219,527.15
December
69.30
6.93
533.61
2,134.44
102.85
219,527.15
TOTAL
831.6
83.16
25,613.28
1,234.20
6,403.32
121
2,634,325.85
Notes for 2014

Cost of Goods Sold
Operating Expense
Direct Materials
Rent
Carob Powder
196,800.00
34,809.60
Utilities
All-Purpose Flour
32,659.20
Electricity
Baking Soda
295.68
Indirect Labor
Salt
6.72
General Manager
134,400.00
White Sugar
15,859.20
Production Head
111,998.88
Vanilla Extract
13,440.00
Finance Head
111,998.88
Vegetable Oil
9,878.40
111,998.88
Water
638.40
All - Purpose Cream

Semi- Sweet Chocolate
Kisses
Sprinkle Semi- Sweet
Chocolate Kisses
6,773.76
Marketing Head
Total Indirect
Labor
Organizational
Expense
Registration Fee
Promotional
Expense
Total
Organizational
Expense
1,300.00
768.00
695.52
Transportation
Depreciation
Equipment
Sprinkle White Chocolate

Kisses
Php
Php
6,854.40
430.08
887.04
32,400.00
470,396.64
1,000.00
2,300.00

Sprinkle Strawberry
Chocolate Kisses
Sprinkle Strawberry
Kisses
21,490.56
443.52
Office Supplies
6,072.00
Flavoring Strawberry
2,184.00
1,488.00
Nescafe Coffee
161.28
Cleaning Supplies
Total Operating
Expense
161.28
Confectioner
168.00
Total Direct Materials

Direct Labor
147,836.64
Baker 1
179,198.88
Baker 2
Total Direct Labor
179,198.88
122
22,993.33
733,217.97
358,397.76
Indirect Materials
Gloves
10,080.00
Hairnet
6,720.00
Total Indirect Materials

Packaging
16,800.00
Box
349,440.00
Cake Board
134,400.00
Label
Total Packaging and
Label
89,779.20
Cost of Goods Sold
1,096,653.60
573,619.20
123
Notes for 2015

Operating
Expense
Cost of Goods Sold

Direct Materials
Php
38,290.56
Rent
Carob Powder
35,925.12
Utilities
All-Purpose Flour
325.25
Electricity
Baking Soda
7.39
Indirect Labor
Salt
17,445.12
General Manager
147,840.00
White Sugar
14,784.00
Production Head
123,198.77
Vanilla Extract
10,866.24
Finance Head
123,198.77
Vegetable Oil
702.24
123,198.77
Water
7,451.14
Marketing Head
Total Indirect
Labor
All - Purpose Cream

Kisses
Chocolate Kisses
Kisses
7,539.84
844.80
473.09
Transportation
Depreciation
Equipment
975.74
Office Supplies
6,679.20
23,639.62
1,636.80

Sprinkle Strawberry
Chocolate Kisses
765.07
Cleaning Supplies
Total Operating
Expense
2,402.40
177.41
Nescafe Coffee
177.41
184.80
Confectioner
162,620.30

Direct Labor
325,240.61
Baker 1
197,118.77
Baker 2
197,118.77
Total Direct Labor

Indirect Materials
394,237.54
487.87
124
Php
216,480.00
35,640.00
517,436.30
22,993.33
801,710.44
Gloves
11,088.00
Hairnet
7,392.00

Packaging
18,480.00
Box
384,384.00
Cake Board
147,840.00
Label
98,757.12
630,981.12
Cost of Goods Sold
1,368,939.26
125
Notes 2016
Cost of Goods Sold
Operating
Expense
Direct Materials
Rent
Carob Powder
Php
Php
248,952.00
45,182.86
Utilities
All-Purpose Flour
42,391.64
Electricity
Baking Soda
383.79
Indirect Labor
Salt
8.72
General Manager
170,016.00
White Sugar
20,585.24
Production Head
141,678.58
Vanilla Extract
17,445.12
Finance Head
141,678.58
Vegetable Oil
12,822.16
141,678.58
Water
828.64
Marketing Head
Total Indirect
Labor
All - Purpose Cream

Kisses
Chocolate Kisses
Kisses
8,792.34
Transportation
Depreciation
Equipment
996.86
7,881.46

Sprinkle Strawberry
Chocolate Kisses
27,894.75
Office Supplies
Cleaning
Supplies
Total Operating
Expense
575.69
2,834.83
Nescafe Coffee
209.34
209.34
Confectioner
218.06

Direct Labor
191,891.96
Baker 1
226,686.58
Baker 2
226,686.58
Total Direct Labor

Indirect Materials
453,373.17
8,897.01
558.24
1,151.38
902.78
126
42,055.20
595,051.75
22,993.33
1,931.42
919,862.03
Gloves
13,083.84
Hairnet
8,722.56

Packaging
21,806.40
Box
453,573.12
Cake Board
174,451.20
Label
116,533.40
744,557.72
Cost of Goods Sold
1,411,629.25
127
D.2 Projected Statement of Cash Flow
Carob Craze
Statement of Long-Term Projected Cash Flow
For the Years Ended 2014, 2015 and 2016
Cash Flow from

Operating Activities
2014
2015
2016
3,880,800.00
4,268,880.00
6,476,358.50
147,836.64
325,240.61
191,891.96
16,800.00
18,480.00
21,806.40
Total Packaging & Label

Payment of Allowances
573,619.20
630,981.12
744,557.72
Direct Labor
358,397.76
394,237.54
453,373.17
Indirect Labor
470,396.64
517,436.30
595,051.75
32,400.00
35,640.00
42,055.20
196,800.00
216,480.00
248,952.00
768.00
844.80
996.86
615,278.53
629,469.09
1,243,460.17
1,468,503.23
1,500,070.54
2,934,213.27
Sales
Php
Purchase of Materials
Direct Material
Indirect Materials
Payment of Utilities
Rent
Transportation
Tax
Cash provided by
Cash Flow from
Investing Activities
Purchase of:
Counter of Cakes
45,000.00
0.00
0.00
Convection Oven
18,000.00
0.00
0.00
Electric Mixer
3,480.00
0.00
0.00
Top Freezer Fridge
2,500.00
0.00
0.00
Office Supplies
6,072.00
6,679.20
7,881.46
Cleaning Supplies
Organizational Costs
1,488.00
1,636.80
1,931.42
Promotional Expenses
1,000.00
0.00
0.00
Registration Fee
Cash provided by
1,300.00
0.00
0.00
78,840.00
Cash Flow from

Financing Activities
128
8,316.00
9,812.88
Capital Contribution
Cash provided by
130,500.00
0.00
0.00
130,500.00
0.00
0.00
Net Cash Flow
1,520,163.23
1,491,754.54
2,924,400.39
Beginning Cash
Ending Cash
0.00
1,520,163.23
1,520,163.23
3,011,917.77
3,011,917.77
5,936,318.17
Carob Craze
Statement of Long-Term Projected 2
nd
Cash Flow
For the Years Ended 2014, 2015 and 2016
Cash Flow from

Depreciation
Cash provided by
Php
2014
2015
2016
1,435,649.90
1,468,761.21
2,901,407.06
22,993.33
22,993.33
22,993.33
1,458,643.23
1,491,754.54
2,924,400.39
Cash Flow from

Counter of Cakes
45,000.00
Convection Oven
18,000.00
Electric Mixer
3,480.00
Top Freezer Fridge
2,500.00
68,980.00
Capital Contribution
Cash provided by
130,500.00
130,500.00
0.00
0.00
Cash provided by
Cash Flow from
Net Cash Flow
1,520,163.23
1,491,754.54
2,924,400.39
Beginning Cash
Ending Cash
0.00
1,520,163.23
1,520,163.23
3,011,917.77
3,011,917.77
5,936,318.17
129
D.3 Projected Statement of Financial Position

Carob Craze
Statement of Long-Term Projected Financial Position
For the Years Ended December 31, 2014, 2015 and 2016
2014
2015
2016
1,520,163.23
3,011,917.77
5,936,318.17
Counter of Cakes
45,000.00
45,000.00
45,000.00
Convection Oven
18,000.00
18,000.00
18,000.00
Electric Mixer
3,480.00
3,480.00
3,480.00
Top Freezer Fridge

Less: Accumulated
Depreciation
2,500.00
2,500.00
2,500.00
22,993.33
45,986.67
68,980.00
Net Non - Current Assets
45,986.67
22,993.33
1,566,149.90
3,034,911.11
5,936,318.17
2014
2015
2016
Assets
Current Assets
Cash on Hand
and in Bank
Php
Non - Current Asset
Total Assets
Php
Partners' Equity
0.00
Capital
130,500.00
1,566,149.90
3,034,911.11
Add: Net Income
1,435,649.90
1,468,761.21
2,901,407.06
Total Owner's Equity
1,566,149.90
3,034,911.11
5,936,318.17
130
D. 4 Projected Statement of Change in Equity

Carob Craze
Projected Statement of Partner's Equity
For Fiscal Years Ended 2014, 2015 and 2016
Capital Beginning
Php
Add: Net Income After Tax
2014
2015
2016
1,566,149.90
3,034,911.11
5,936,318.17
1,435,649.90
1,468,761.21
2,901,407.06
Less: Drawings
Capital Ending
0.00
0.00
0.00
Php
3,001,799.80
4,503,672.32
8,837,725.23
E. FINANCIAL ANALYSIS
1. Annual Cash Returns
Annual Cash Return
Year
2014

Add: Depreciation
Annual Cash
Year
2015
2016
1,435,649.90
1,468,761.21
2,901,407.06
22,993.33
45,986.67
68,980.00
1,458,643.23
1,514,747.88
2,970,387.06
Operating Cash Flow
2014
1,458,643.23
2015
1,514,747.88
2016
2,970,387.06
Annual Cash Returns
5,943,778.17
/3
1,981,259.39
2. Payback Period
Payback Period
Initial Capital Investment

Divided by OCI:
130,000.00
1,981,259.39
0.065867196
131
*360 days
23.71
days
3. Net Present Value
NET PRESENT VALUE

Net Present Value
Present value of annual cash returns at 20%
2014
1,458,643.23
2015
1,514,747.88
2016
2,970,387.06
0.833
0.694
0.579
1,215,049.81
1,051,235.03
1,719,854.11
3,986,138.95
Less: Investment requirement
130,500.00
Expected Net Present Value
3,855,638.95
The Company expects to have a rate of return of not less than 20% for each year of operation.
4. Internal Rate of Return

Investment requirement
(130,000.00)
ACR year 1
1,458,643.23
ACR year 2
1,514,747.88
ACR year 3 + working capital
3,019,261.33
Using EXCEL, IRR Is equal to =
1127.64%
1127.64%
Interpretation:
Generally, if the IRR is greater than the cost of capital, it is advisable to go ahead with the
investment. Since the IRR of 835.62% is very much greater than 20%, it would be wise to
invest in this project.
132
5. Break Even point

Formula for Break-even:
Break-even point in peso = Fixed Cost / Contribution Margin Ratio
Break-even point in units = Fixed Cost / Contribution Margin per Unit
F.1 Chocolate Carob Mini Cake
Contribution Margin per Unit (CMU) = Selling Price Total Variable Cost per Unit
= P85.00 P69.16
= P 15.84
Contribution Margin(C) = CMU/ Unit Selling Price
= P15.84 / P 85.00
= 18.64 %
1. Break-even Point in Peso = P61, 380.11 / 18.64 %
= P3, 292.92
2. Break-even Point in Units = 61, 380.11/ 15.84
= 3,875.00
F.2 Strawberry Carob Mini Cake
= P95.00 P77.17
= P17.83
= P17.83 / P95.00
= 18.77 %
1. Break-even Point in Peso = P61, 380.11 / 18.77
= P3270.12
= 3,442.52
F.3 Coffee Carob Mini Cake
= P85.00 P68.23
= P16.77
= P16.77 / P85.00
= 19.73 %
= P3, 111.00
= 3,660.11
F.4 Original Carob Mini Cake
= P50.00 P 41.62
133
= P8.38
= P8.38 / P50.00
= 16.76 %
= P3, 662.30
= P7, 324.60
F.5 White Chocolate Carob Mini Cake
= P 85.00 - P 69.88
= P 15. 12
= P15.12 / P 85.00
= 17.79 %
= P3, 450.26
= 4059.53
6. Gross Profit Margin and Net Profit Margin

Gross Profit Margin
Gross Profit
Divided by Sales
Gross Profit Margin
Php
2014
2015
2016
2,784,146.40
2,899,940.74
5,064,729.26
3,880,800.00
4,268,880.00
6,476,358.50
Php
0.72
0.68
0.78
The business is more profitable in 2016.

Net Profit Margin
Php
Divided by Sales
Net Profit Margin
Php
2014
2015
2016
1,435,649.90
1,468,761.21
2,901,407.06
3,880,800.00
4,268,880.00
6,476,358.50
0.37
The business is more profitable in 2016.
134
0.34
0.45
7. Rate of Return on Sales or Equity

Return on Equity
Divided by Equity
Return on Equity
Php
2014
2015
2016
1,435,649.90
1,468,761.21
2,901,407.06
1,565,649.90
3,034,411.11
5,935,818.17
Php
0.92
The business is least profitable in 2015.
135
0.48
0.49

Financial Plan

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Financial

Renovation of work area

The difference of 130,500.00 and 129,449.27 amounting to 1,050.73 will be Petty

C. FINANCING PLAN / SOURCING OF FUNDS

John Michael Paguio

Christine Carla Puno

Stephanie Kirsten Velarde

Less: Cost of Goods Sold

Less: Operating Expenses

Less: Taxes (30%)

Net Income After Tax

** See Sales projection from 20142016

2014 Chocolate Carob Kisses Sales Projection

2014 White Chocolate Carob Kisses Sales Projection

2014 Strawberry Carob Kisses Sales Projection

2014 Original Carob Sales Projection

2014 Coffee Flavored Carob Sales Projection

2015 Chocolate Carob Kisses Sales Projection

2015 White Chocolate Carob Kisses Sales Projection

2015 Strawberry Carob Kisses Sales Projection

2015 Coffee Flavored Carob Sales Projection

2016 Chocolate Carob Kisses Sales Projection

2016 White Chocolate Carob Kisses Sales Projection

2016 Strawberry Carob Kisses Sales Projection

2016 Original Carob Sales Projection

2016 Chocolate Carob Kisses Sales Projection

Notes for 2014

All - Purpose Cream

Sprinkle White Chocolate

White Chocolate Kisses

Sprinkle Nescafe Coffee

Total Direct Materials

Total Indirect Materials

Cost of Goods Sold

Notes for 2015

Cost of Goods Sold

All - Purpose Cream

White Chocolate Kisses

Sprinkle Strawberry Kisses

Sprinkle Nescafe Coffee

Total Direct Materials

Total Direct Labor

Total Indirect Materials

Total Packaging and Label

Cost of Goods Sold

Cost of Goods Sold

All - Purpose Cream

White Chocolate Kisses

Sprinkle Strawberry Kisses

Sprinkle Nescafe Coffee

Total Direct Materials

Total Direct Labor

Total Indirect Materials

Total Packaging and Label

Cost of Goods Sold

D.2 Projected Statement of Cash Flow

Cash Flow from

Total Packaging & Label

Top Freezer Fridge

Cash Flow from

Net Cash Flow

For the Years Ended 2014, 2015 and 2016

Cash Flow from

Cash Flow from