Professional Documents
Culture Documents
Php 1,783,180
Total Assets
Php 1,783,180
Php 793,000
General Manager
Php 195,000
Secretary
Php 156,000
Accountant
Php 156,000
Shoe Designer
Php 156,000
Sales Clerk
Php 130,000
Rents
Php 240,000
Utilities
Php 138,000
Php 10,000
Phone Bill
Php 1,500
Php 85,500
Includes:
Shoe Rack
Php 40,000
Laptop
Php 30,000
Printer
Php 13,500
Router
Php 1,200
Telephone
Php 800
Office Supplies
Php 16,680
Php 1,000
Ink Cartridge
Php 390
Products
Php 360,000
Manufacturer (300x)
Php 1,200/piece
Php 2,200
Advertisements
Php 150,000
Fliers
Php 10,000
Signage
Php 40,000
Magazine Ads
Php 100,000
TOTAL
Php 1,783,180
Total
2,200,000
793,000
Rent Expense
240,000
Utility Expense
138,000
16,680
Advertisements Expense
150,000
(1,337,680
)
862,320
Total
40,000
30,000
Acquisition of Printer
13,500
Acquisition of Router
1,200
Acquisition of Telephone
800
(85,500)
776,820
Total
776,820
The table above shows that the company incurred and increase in cash amounting to
Php 776,820. The loan of the partners amounting to Php 1,000,000 for their Start-up capital
can be paid on a semi annual basis so that the business will be able to survive the introduction
phase as it entails more risk. Once the business stabilizes and maintains its customers it can
easily pay the loan balance.
Income
Projection for
period ending
December 31,
2013
Income
Projection for
period ending
December 31,
2014
P 2,200,000
P 4,600,000
P 7,500,000
1,200,000
2,400,000
3,600,000
Gross Income
1,000,000
2,200,000
3,900,000
793,000
793,000
793,000
Rent Expense
240,000
240,000
240,000
Utility Expense
138,000
138,000
138,000
16,680
16,680
16,680
Advertisement Expense
150,000
175,000
225,000
40,000
400
400
Acquisition of Laptop
30,000
300
300
Acquisition of Printer
13,500
135
135
Acquisition of Router
1,200
120
120
800
80
80
P (423,180)
P 836,285
P 2,486,285
Acquisition of Telephone
INCOME:
The table shows the three-year projected income status of the business. Most of the
expenses do not change since they are expenses for the operation and administration of the
business. The only increasing expense is the advertisement expense. The product of Happy
Heel is in its introductory stage so it needs massive and constant advertisement and exposure
to the target market so it can make a mark on the minds of the target. An increase in
advertisement will only lead to increase income due to the fact that more and more people will
buy the product. There will be a net loss in the first year of company but it is expected as the
business is in its infancy and just building up its portfolio. Fortunately, the business will be able
to bounce back and gain a net income on its second year due to more promotions and
aggressive sales.
793,000
Rent Expense
240,000
Utilities Expense
138,000
85,500
Supplies Expense
16,680
Advertisement Expense
150,000
Product Expense
360,000
TOTAL
P 1,783,180
Capital and Liabilities
Capital
Loans Payable
TOTAL
F. Break-Even Analysis
783,180
1,000,000
P 1,783,180
Monthly basis
Salary Expense
P 61,000
Utility Expense
P 11,500
Advertising Expense
P 12,500
Rent Expense
P 20,000
Office Supplies
P 1,390
Fixed Cost
P 106,390
Manufacturing cost
P 1,200