Professional Documents
Culture Documents
A. INCOME STATEMENT
Presented are projected financial statements covering a three year and three month period.
Relevant assumptions are as follows:
Service Tax Rate is at 2%
Corporate Income Tax Rate is 30%
Suppliers services costs increased by 7% per annum
Accounts Receivable is 10% of income (inclusive of Service Tax )
B. INITIAL CAPITALIZATION:
a. Breakdown of Initial Capitalization Needed
I.
Machineries and Equipment:
Table 1.2: Machinery and Equipment
Item
Specifications
Total Price
Two way radio
5
P 24 500
Storage Box
2
598
TOTAL MACHINERY and EQUIPMENT
P 25 098
II.
III.
Supplies Expense
Table 1.4: Supplies expense and services
Rims of Bond Paper
3
P 525
Board Specialty Paper
2
60
Specialty Paper Glossy
5
300
Filed Organizers
4
3340
Pubmats Printing
50
2000
TOTAL SUPPLIES EXPENSE
P 6 225
IV.
Other Expenses
SEC Verification
Treasurers affidavit
SEC Registration
Community Tax
Mayors Permit
DTI name registration
Print Receipts and
Invoices
Corporate Jacket
Polo Shirt Uniform
Pin
TOTAL OTHER EXPENSES
V.
P 40
500
1520
500
1000
300
4000
4800
4320
1500
P 18 510
Working Capital
Table 1.6: Working Capital (First month after opening)
Working Fund
First 3 events
P90 000
Advertising Expense
Communication and
10 000
Transportation
TOTAL Working Capital
P100 000
C. SOURCE OF FUNDS
Table 1.6: Source of Funds
Initial Investment from the proprietors
TOTAL INITIAL CAPITAL
P 278 457
P 278 457
D. SALES PROJECTION
Academic Approach
Computed as follows:
Politician Respondents (7/10) = 70%
Student Leader Respondents (5/10) = 50%
Individuals 18-27- (6/10) = 60%
Company Managers (5/10) = 50%
Median: 57.5 % = Yes theyll buy (Target Market or segmentation)
Standard mode of payment used in the projection: Flat rate
Number of meetings
7
5
4
3
2
1
Flat rate
50 000
40 000
35 000
25 000
20 000
15 000
Number of meetings
6
4
3
2
1
1
Flat rate
35 000
30 000
20 000
15 000
10 000
10 000
Partial Package:
Event Category
1
2
3
4
5
6
Note: the initial meeting (plus 1) will not be charged against the client
Partnership assets will be used to finance the first meetings
Prices will be subjected to changes upon negotiation
-On the Day of any event: Standard rate of P 10 000 subject to negotiations
-Program Conceptualization: Standard rate of P5 000 for actual events subject to negotiations
depending on client demand
-Skype consultation starts at P 3 000 per hour
POLICIES:
-every meetings exceeding the standard meeting included in the package
-every rush coordination, additional payment will be charged against the client
-events outside the metro will be charged differently
-additional manpower will be charged against the client
FIRST YEAR
Month of May (Opening) usual events are fiestas, assumed all in packages (basis: survey and
interviews) DISCOUNT STARTS AT 10% depending on the event
Event category
Maximum event
frequency
(multiplier)
2
3 months
preparation
Less: (multiplier 2)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Discount 10%
Month of may (gross profit)
Willing buyers
Selling Price
Income
Projection
35 000
70 000
(60 000)
P 10 000
Month of June - July (Opening plus 1 discounted event) usual events are campus
events (basis: survey and interviews)
Event category
Maximum event
frequency
Willing buyers
Selling Price
Income
Projection
(multiplier)
2
1 month
preparation
Less: (multiplier 2)
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Discount of 10% from 15 000
Month of June - July (gross profit)
15 000
30 000
(21 500)
P 8 500
Month of August- November usual events are campus events (basis: survey and interviews)
Event category
Maximum event
frequency
(multiplier)
3
Willing buyers
1 month
6
preparation
Less: (multiplier 3)
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of August - November (gross profit)
Selling Price
Income
Projection
15 000
45 000
(20 000)
P 15 000
Month of December - February usual events are weddings, corporate parties, and
holidays (basis: survey and interviews)
Event category
Maximum event
frequency
(multiplier)
4
Willing buyers
4-5 months
6
preparation
Less: (multiplier 4)
Meetings (7500) 30 000
Ushers and manpower (1500) 6000
Transportation Expense (8000) 32 000
Salary share (12000) 48 000
Token and evaluation (2000) 8000
Month of December - February (gross profit)
Selling Price
Income
Projection
40 000
160 000
(124 000)
P 36 000
Month of March - May usual events are corporate meeting, graduation events. fiestas (basis:
survey and interviews)
Event category
Maximum event
Willing buyers
Selling Price
Income
frequency
(multiplier)
5
3 months
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 1 GROSS PROFIT
Projection
6
35 000
175 000
(132 500)
P 42 500
P 112 000
SECOND YEAR
Event category
Maximum event
frequency
(multiplier)
5
Willing buyers
Selling Price
Income
Projection
1 month
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of June - July (gross profit)
15 000
75 000
Event category
Willing buyers
P 15 000
Selling Price
Income
Projection
1 month
6
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of August - November (gross profit)
15 000
75 000
Event category
Willing buyers
Selling Price
Income
Projection
40 000
200 000
4-5 months
Maximum event
frequency
(multiplier)
5
(50 000)
Maximum event
frequency
(multiplier)
5
(50 000)
P 15 000
preparation
Less:
Meetings (7500) 37 500
Ushers and manpower (1500) 7500
Transportation Expense (8000) 40 000
Salary share (12000) 60 000
Token and evaluation (2000) 10 000
Month of December - February (gross profit)
Event category
Maximum event
frequency
(multiplier)
5
3 months
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 2 GROSS PROFIT
(155 000)
P 45 000
Willing buyers
Selling Price
Income
Projection
35 000
175 000
(132 500)
P 42 500
P 117 500
THIRD YEAR
Event category
Willing buyers
Selling Price
Income
Projection
1 month
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of June - July (gross profit)
15 000
75 000
Event category
Willing buyers
Selling Price
Income
Projection
15 000
75 000
1 month
preparation
Less:
Meetings (1500)
Maximum event
frequency
(multiplier)
5
Maximum event
frequency
(multiplier)
5
(50 000)
P 15 000
(50 000)
Event category
Maximum event
frequency
(multiplier)
5
Selling Price
Income
Projection
4-5 months
6
preparation
Less:
Meetings (7500) 37 500
Ushers and manpower (1500) 7500
Transportation Expense (8000) 40 000
Salary share (12000) 60 000
Token and evaluation (2000) 10 000
Month of December - February (gross profit)
40 000
200 000
Event category
Willing buyers
Selling Price
Income
Projection
35 000
175 000
Maximum event
frequency
(multiplier)
5
3 months
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 3 GROSS PROFIT
Willing buyers
P 15 000
(155 000)
P 45 000
(132 500)
P 42 500
P 117 500
Maximum event
frequency
(multiplier)
6
1 month
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Willing buyers
Selling Price
Income
Projection
15 000
90 000
(60 000)
P 30 000
E. BREAK-EVEN ANALYSIS
Fixed Cost
Divided by
Contribution
Margin
Break-even
analysis in pesos
Year 1
135 500
0.5292968
135 499. 54
152 499.56
Computation:
480 000-224000 = 256 000
525000- 235 000= 290 000
525000- 235 000= 290 000
152 499.56