Employee's Salary

Personnel No. Of Personnel Daily Rate

Manager 1 700
Supervisor 1 500
Office Staff 1 350
Purchaser / Store Keeper 1 350
Technician 1 350
Skilled Worker 5 320
Skilled Sewer 3 320
Total

"Sales Volume Assumption"

Initial Production & Sales per day
Number of Days per year
Production & Sales for the first Year
0.95
Yearly Sales Volume backpack
backpack 2015 2,280.00
2016 2,508.00
2017 2,758.80
2018 3,034.68
2019 3,338.15

Utilities cost
Electricity Meralco 144,000
Water Laguna Water District 12,000
Telephone and Cellphone PLDT 36,000
Internet
Total 192,000

Transportation
Gas Petron 6,192

rentals 30000 360000

ry Neo Backpack Production
Schedule of Depreciation Expense
Monthly Salary per Annual Salary
person (Including
Benefits 20%)
21,000.00 252,000.00
15,000.00 180,000.00 Machinery
10,500.00 126,000.00
10,500.00 126,000.00 Sewing Machine
10,500.00 126,000.00 Delivery Vehicle
48,000.00 576,000.00 Total
28,800.00 345,600.00
144,300.00 1,731,600.00
Office Furniture & Fixture
Visitors Chair
8 units/day Office Table & Chair
300 days Computer with LCD
2400 units Printer
2280 Total

0.1
0.1 Office supplies
0.1 typwriting
0.1 ballpens
0.1 fastener
folder
envelope
stapler
puncher
glue
scissors
pencil
eraser
Total

Store Furniture & Fixture

Fire Extinguisher
Total

Tools & Equipment

 Neddle
Scissors
360 Cutter
51.4285714286 Tape measure
Fabric Scissors
Tailors chalk
Tracing Wheel and Paper
School Chalk
Thread

Total

Buiding Repair

YEARLY DEPRECIATION

Total Capital Expenditures

Cash Bond

Provision for initial requirements for working capital

Inventory
Prepaid Rent
3 months salary

TOTAL PROJECT COSTS

on Expense

Unit Unit Cost Price Salvage Estimated

Value Life

3 12,000.00 36,000.00 3,600.00 10

2 350,000.00 700,000.00 70,000.00 10
736,000.00

4 Units 2,000.00 8,000.00 1,200.00 10

3 Units 12,000.00 36,000.00 5,400.00 10
3 Units 30,000.00 90,000.00 13,500.00 10
1 Unit 7,000.00 7,000.00 1,050.00 10
141,000.00

500 pc 2.50 1,250.00

96 pc 4.50 432.00
100 pc 2.50 250.00
240 pc 5.50 1,320.00
240 pc 5.50 1,320.00
24 pc 45.00 1,080.00
12 pc 100.00 1,200.00
24 pc/30cc 15.00 360.00
24 pc 30.00 720.00
96 pc 4.50 432.00
30 pc 2.50 75.00
8,439.00

4 2,400.00 9,600.00 1,440.00 10

9,600.00
 Qty Unit Unit Cost Price
6 boxes 40.00 240.00 24.00
4 units 70.00 280.00 28.00
4 units 50.00 200.00 20.00
4 units 150.00 600.00 60.00
4 units 85.00 340.00 34.00
12 pack 94.60 1,135.20 113.52
4 piece 76.63 306.52 30.65
12 box 16.80 201.60 20.16
12 piece 24.00 288.00 28.80

3,591.32

120,000.00 10

1,018,630.32

1,018,630.32

irements for working capital

134,110.74
180,000.00
432,900.00 747,010.74
200,000.00
1,965,641.06
 Yearly
Depreciated

3,240.00
63,000.00
66,240.00

680.00
3,060.00
7,650.00
595.00
11,985.00

816.00
816.00
 79,041.00

12,000.00

91,041.00
 Schedule of Cost of Sales
Company Name

2015
Large Per Unit
MATERIALS Price per unit
Direct Materials
Polyester fabric 96.97
Nylon fabric 56.76
Coton fabric 61.02
Zipper 37.00
Zipper head 15.00
Rectangle Slider 11.36
Foam 23.65
Polyester web 23.65
Mini-mp3 203.00
Solar Mobile Charfer 643.00
Indirect Materials
Packaging 5.00
TOTAL 1,176.41 2,400

Consumption per Year 2,823,384.00

TOTAL Consumption per Year 2,823,384.00
2016 2017 2018 2019

2,640 2,904 3,194 3,514

3,105,722.40 3,416,294.64 3,757,924.10 4,133,716.51

3,105,722.40 3,416,294.64 3,757,924.10 4,133,716.51
2,941.03
Projected Sales

Company Name YEAR 1 YEAR 2 YEAR 3

Expected Target Sales Volume 2,280 2,508 2,759

Selling Price Per Unit 2,941.03 3,088.08 3,242.48

No. of Buyers 2,280.00 2,508.00 2,758.80
Gross Sales 6,705,537.00 7,744,895.24 8,945,354.00

Total Gross Sales Per Year 6,705,537.00 7,744,895.24 8,945,354.00

YEAR 4 YEAR 5

3,035 3,338

3,404.60 3,574.83
3,034.68 3,338.15
10,331,883.87 11,933,325.87

10,331,883.87 11,933,325.87
 Repairs and Maintenance

Unit Unit Cost Price Salvage

Value

Paint 12 liter 87.43 1,049.16

Paint brush 3 pc 50.00 150.00
Paint roller 3 pc 80.00 240.00
Airless Sprayers 2 pc 796.99 1,593.98

Cleaning Materials
Broom 12 pc 99.00 1,188.00
Mop 4 pc 150.00 600.00
Squegee mop 4 pc 150.00 600.00
Bucket 6 pc 50.00 300.00
Feather duster 12 pc 50.00 600.00
Rubber gloves 24 pc 99.00 2,376.00
Brush 24 pc 20.00 480.00
Floor cleaner 12 liter 100.00 1,200.00
Detergent 12 kg 193.45 2,321.40
Liquid soap 12 liter 100.00 1,200.00
Airfreshener 12 liter 100.00 1,200.00
Garbage Bag 96 pc 4.50 432.00
Garbage can 3 pc 200.00 600.00
Total: 16,130.54

Office supplies
typwriting 500 pc 2.50 1,250.00
ballpens 96 pc 4.50 432.00
fastener 100 pc 2.50 250.00
folder 240 pc 5.50 1,320.00
envelope 240 pc 5.50 1,320.00
stapler 24 pc 45.00 1,080.00
puncher 12 pc 100.00 1,200.00
glue 24 pc/30cc 15.00 360.00
scissors 24 pc 30.00 720.00
pencil 96 pc 4.50 432.00
eraser 30 pc 2.50 75.00
Estimated Yearly
Life Depreciated
PROJECTED INCOME STATEMENT

2015 2016 2017

SALES 6,705,537.00 7,744,895.24 8,945,354.00

Cost of Sales
Total Cost of Sales 2,823,384.00 3,105,722.40 3,416,294.64

GROSS PROFIT 3,882,153.00 4,639,172.84 5,529,059.36

OPERATING EXPENSES:
Salaries and wages (increase by 5%) 1,731,600.00 1,818,180.00 1,909,089.00
VAT (12%) 415,944.96 497,054.23 592,399.22
Utilities- (increase of 5%) 192,000.00 201,600.00 211,680.00
Advertising 50,000.00 50,000.00 50,000.00
Repairs and maintenance 16,130.54 16,130.54 16,130.54
Rentals 360,000.00 360,000.00 378,000.00
Office supplies (increase by 5%) 8,439.00 8,860.95 9,304.00
Transportation (increase by 3%) 6,192.00 6,377.76 6,569.09
Permit and licenses (decrease of 5%) 5,000.00 4,750.00 4,512.50
Business Tax 134,110.74 154,897.90 178,907.08
Other Expenses 10,000.00 10,000.00 10,000.00
Depreciation 91,041.00 91,041.00 91,041.00
Total Operating Expenses 3,020,458.24 1,428,418.42 3,457,632.43

NET OPERATING INCOME 861,694.76 3,210,754.42 2,071,426.93

PROVISION FOR INCOME TAX 258,508.43 963,226.32 621,428.08

NET INCOME FOR THE YEAR 603,186.33 2,247,528.09 1,449,998.85

Net income to sales 0.09 0.29 0.16

Net income to total assets 0.52 2.10 1.48

Net income to total capital 0.55 2.23 1.58

backpack manucturing
Financial Highlights

% Profit
Sales Net to Total
Year Revenue Profit Revenue

2011 6,705,537.00 603,186.33 0.09

2012 7,744,895.24 2,247,528.09 0.29
2013 8,945,354.00 1,449,998.85 0.16
2014 10,331,883.87 2,009,117.62 0.19
2015 11,933,325.87 2,661,226.19 0.22

Average

Growth rate of sales volume 10%

Machinery/ Vehicle 736,000.00 Provision for initial requirements for working

Office Supplies 8,439.00
Office Furniture & Fixture 141,000.00 Cash & Cash Equivalent
Store Furniture & Fixture 9,600.00 Inventory
Tools & Equipment 3,591.32 Prepaid Rent
Building Repair 120,000.00 3 months salary
Cash Bond 200,000.00
Working Capital Provision 747,010.74
TOTAL PROJECT COST 1,965,641.06

Total Payback Period 2 years

Internal rate of Return for 2 years 86.6%

PROJECTED BALANCE SHEET

 2015 2016 2017

CURRENT ASSETS
Cash & Cash Equivalent - - -
Inventory 47,056.40 51,762.04 56,938.24
Prepaid Rent 180,000.00 180,000.00 180,000.00
Property Plant & Equipment 927,589.32 836,548.32 745,507.32
Building Repair 108,000.00 96,000.00 84,000.00
Total Assets 1,154,645.72 1,068,310.36 982,445.56

LIABILITIES & CAPITAL

Accounts Payable 54,899.13 60,389.05 66,427.95
Owner's Capital 1,099,746.59 1,007,921.31 916,017.61
Total Liabilities & Capital 1,154,645.72 1,068,310.36 982,445.56

Schedule of Partners Equity

Capital Beg. 1,965,641.06 1,099,746.59 1,007,921.31
Net Income 603,186.33 2,247,528.09 1,449,998.85
Withdrawal (1,525,548.48) (2,339,353.36) (1,541,902.55)
Capital End. 1,099,746.59 1,007,921.31 916,017.61

PROJECTED CASH FLOW STATEMENT

2015 2016 2017

CASH PROVIDED BY OPERATION

Net Income 603,186.33 2,247,528.09 1,449,998.85
Add Back: Depreciation 91,041.00 91,041.00 91,041.00
Increase in working capital (172,157.27) 784.27 862.70
Net Cash Provided By Operation 522,070.06 2,339,353.36 1,541,902.55

INVESTING ACTIVITIES
Capital Expenditures (368,791.31) - -

FINANCING ACTIVITIES
Project Investment 1,965,641.06
Partners Withdrawal (1,525,548.48) (2,339,353.36) (1,541,902.55)
Total 496,560.26 - (1,541,902.55)
 Net Cash Flow 649,839.01 - -

Cash Beginning Balance - 649,839.01 649,839.01

Cash Ending Balance 649,839.01 649,839.01 649,839.01

COMPUTATIONS ONLY
Investment 2015 2016
Cash flow for IRR Computation
86.6% (1,965,641.06) 1,525,548.48 2,339,353.36

Payback period computation (496,560.26) 1,842,793.11

1.21 1 0.21

Company Name
Financial Assumptions

Annual materials cost increases

Corresponding annual selling price increases

Labor costs increases

Employee benefits includes SSS, Philhealth, 13th month pay and other
benefits will be averaging

Number of working days per month

Rental expense per month and will increase yearly by

Pre-operating expenses are minimal and charged outright as expense.

Business taxes

Income tax rate

Straight line method of depreciation is used and salvage value is

Cost of utilities will increase yearly by

Accounts payable

Cash and cash equivalnt is equivalent to

Raw materials inventory is equivalent to

Other fixed costs:

Store & Plant rental 30,000
Advertising 50,000.00
Power costs 3,000
Repairs and maintenance 600
Other utilities 4,000
Other costs 833.33
 darle_escuton@yahoo.com

2018 2019

10,331,883.87 11,933,325.87

3,757,924.10 4,133,716.51

6,573,959.76 7,799,609.35

2,004,543.45 2,104,770.62
704,352.83 835,672.43
222,264.00 233,377.20
50,000.00 50,000.00
16,130.54 16,130.54
378,000.00 396,900.00 0
9,769.20 10,257.66
6,766.17 6,969.15
4,286.88 4,072.53
206,637.68 238,666.52
10,000.00 10,000.00
91,041.00 91,041.00
3,703,791.74 3,997,857.65

2,870,168.02 3,801,751.70

861,050.41 1,140,525.51

2,009,117.62 2,661,226.19

0.19 0.22

2.24 3.28

2.44 3.64
 120,000.00
% Profit % Profit 230,000.00 -
to total to total 135,000.00 -
Assets Equity 485,000.00

0.52 0.55
2.10 2.23 306,119.67
1.48 1.58 0
2.24 2.44
3.28 3.64

n for initial requirements for working capital

sh & Cash Equivalent -
134,110.74
180,000.00
432,900.00
747,010.74
 2018 2019

- -
62,632.07 68,895.28
180,000.00 180,000.00
654,466.32 563,425.32
72,000.00 60,000.00 depreciation
897,098.39 812,320.60

73,070.75 80,377.82
824,027.64 731,942.77
897,098.39 812,320.60

916,017.61 824,027.64
2,009,117.62 2,661,226.19
(2,101,107.59) (2,753,311.06)
824,027.64 731,942.77

2018 2019

2,009,117.62 2,661,226.19
91,041.00 91,041.00
948.97 1,043.87
2,101,107.59 2,753,311.06

- -

(2,101,107.59) (2,753,311.06)
(2,101,107.59) (2,753,311.06)
 - -

649,839.01 649,839.01

649,839.01 649,839.01

2017 2018 2019

1,541,902.55 2,101,107.59 2,753,311.06

5%

5%

5%

20% of basic pay

30 days

5%

2% of gross sales

30%

10% of cost
 5%

7 days of yearly cost of sales

7 days sales

6 days inventory level

/month 360,000.00
/month 600,000.00
/month 36,000.00
/month 7,200.00
/month 48,000.00
/month 9,999.96
NEO BACKPACK MANUFACTURING
PROJECTED INCOME STATEMENT
For the year ended Dec 31. 2015-2019
2015 2016

SALES 6,705,537.00 7,744,895.24

Cost of Sales
Total Cost of Sales 2,823,384.00 3,105,722.40

GROSS PROFIT 3,882,153.00 4,639,172.84

OPERATING EXPENSES:
Salaries and wages (increase by 5%) 1,731,600.00 1,818,180.00
VAT (12%) 415,944.96 497,054.23
Utilities- (increase of 5%) 192,000.00 201,600.00
Advertising 50,000.00 50,000.00
Repairs and maintenance 16,130.54 16,130.54
Rentals 360,000.00 360,000.00
Office supplies (increase by 5%) 8,439.00 8,860.95
Transportation (increase by 3%) 6,192.00 6,377.76
Permit and licenses (decrease of 5%) 5,000.00 4,750.00
Business Tax 134,110.74 154,897.90
Other Expenses 10,000.00 10,000.00
Depreciation 91,041.00 91,041.00
Total Operating Expenses 3,020,458.24 3,218,892.39

NET OPERATING INCOME 861,694.76 1,420,280.45

PROVISION FOR INCOME TAX 258,508.43 426,084.13

NET INCOME FOR THE YEAR 603,186.33 994,196.31

Net income to sales 0.09 0.13

Net income to total assets 0.17 0.22

Net income to total capital 0.23 0.28

NEO BACKPACK MANUFACTURING
Financial Highlights

Sales Net
Year Revenue Profit

2011 6,705,537.00 603,186.33

2012 7,744,895.24 994,196.31
2013 8,945,354.00 1,449,998.85
2014 10,331,883.87 2,009,117.62
2015 11,933,325.87 2,661,226.19

Average

Growth rate of sales volume 10%

Project costs:
Machinery/ Vehicle 736,000.00
Office Supplies 8,439.00
Office Furniture & Fixture 141,000.00
Store Furniture & Fixture 9,600.00
Tools & Equipment 3,591.32
Building Repair 120,000.00
Cash Bond 200,000.00
Working Capital Provision 747,010.74
TOTAL PROJECT COST 1,965,641.06

Total Payback Period 2.75 years

Internal rate of Return for 2.65 years 51.4%

NEO BACKPACK MANUFACTURING

PROJECTED BALANCE SHEET

2015 2016

CURRENT ASSETS
Cash & Cash Equivalent 2,042,845.30 3,131,070.51
Inventory 134,110.74 134,110.74
Prepaid Rent 180,000.00 183,600.00
Property Plant & Equipment 1,018,630.32 990,877.82
 Building Repair 108,000.00 96,000.00
Total Assets 3,483,586.36 4,535,659.07

LIABILITIES & CAPITAL

Accounts Payable 65,878.96 72,466.86
Owner's Capital 2,568,827.39 3,563,023.70
Total Liabilities & Capital 2,568,827.39 3,563,023.70

Schedule of Partners Equity

Capital Beg. 1,965,641.06 2,568,827.39
Net Income 603,186.33 994,196.31
Withdrawal
Capital End. 2,568,827.39 3,563,023.70

NEO BACKPACK MANUFACTURING

PROJECTED CASH FLOW STATEMENT

2015 2016

CASH PROVIDED BY OPERATION

Net Income 603,186.33 994,196.31
Add Back: Depreciation 91,041.00 91,041.00
Increase in working capital (248,231.78) 2,987.90
Net Cash Provided By Operation 445,995.55 1,088,225.21

INVESTING ACTIVITIES
Capital Expenditures (368,791.31) -

FINANCING ACTIVITIES
Project Investment 1,965,641.06
Partners Withdrawal - -
Total 1,965,641.06 -

Net Cash Flow 2,042,845.30 1,088,225.21

Cash Beginning Balance - 2,042,845.30

Cash Ending Balance 2,042,845.30 3,131,070.51

COMPUTATIONS ONLY
Investment 2015
Cash flow for IRR Computation
51.4% (1,965,641.06) 603,186.33

Payback period computation (1,362,454.73)

2.75 1

NEO BACKPACK MANUFACTURING

Financial Assumptions

Annual materials cost increases

Corresponding annual selling price increases

Labor costs increases

Employee benefits includes SSS, Philhealth, 13th month pay and other
benefits will be averaging

Number of working days per month

Rental expense per month and will increase yearly by

Pre-operating expenses are minimal and charged outright as expense.

Business taxes

Income tax rate

Straight line method of depreciation is used and salvage value is

Cost of utilities will increase yearly by

Accounts payable

Cash and cash equivalnt is equivalent to

Raw materials inventory is equivalent to

Other fixed costs:

Store & Plant rental
Advertising
Power costs
Repairs and maintenance
Other utilities
Other costs
 2017 2018 2019

8,945,354.00 10,331,883.87 11,933,325.87

3,416,294.64 3,757,924.10 4,133,716.51

5,529,059.36 6,573,959.76 7,799,609.35

1,909,089.00 2,004,543.45 2,104,770.62

592,399.22 704,352.83 835,672.43
211,680.00 222,264.00 233,377.20
50,000.00 50,000.00 50,000.00
16,130.54 16,130.54 16,130.54
378,000.00 378,000.00 396,900.00
9,304.00 9,769.20 10,257.66
6,569.09 6,766.17 6,969.15
4,512.50 4,286.88 4,072.53
178,907.08 206,637.68 238,666.52
10,000.00 10,000.00 10,000.00
91,041.00 91,041.00 91,041.00
3,457,632.43 3,703,791.74 3,997,857.65

2,071,426.93 2,870,168.02 3,801,751.70

621,428.08 861,050.41 1,140,525.51

1,449,998.85 2,009,117.62 2,661,226.19

0.16 0.19 0.22

0.24 0.25 0.25

0.29 0.29 0.27

% Profit % Profit % Profit
to Total to total to total
Revenue Assets Equity

0.09 0.17 0.23

0.13 0.22 0.28
0.16 0.24 0.29
0.19 0.25 0.29
0.22 0.25 0.27
2017 2018 2016

4,675,685.04 6,780,069.58 9,537,284.91

134,110.74 134,110.74 134,110.74
187,272.00 191,017.44 194,837.79
963,125.32 935,372.82 907,620.32
 84,000.00 72,000.00 60,000.00
6,044,193.10 8,112,570.58 10,833,853.76

79,713.54 87,684.90 96,453.39

5,013,022.55 7,022,140.17 9,683,366.36
5,013,022.55 7,022,140.17 9,683,366.36

3,563,023.70 5,013,022.55 7,022,140.17

1,449,998.85 2,009,117.62 2,661,226.19

5,013,022.55 7,022,140.17 9,683,366.36

2017 2018 2019

1,449,998.85 2,009,117.62 2,661,226.19

91,041.00 91,041.00 91,041.00
3,574.69 4,225.91 4,948.14
1,544,614.54 2,104,384.53 2,757,215.33

- - -

- - -
- - -

1,544,614.54 2,104,384.53 2,757,215.33

3,131,070.51 4,675,685.04 6,780,069.58

4,675,685.04 6,780,069.58 9,537,284.91

2016 2017 2018 2019

994,196.31 1,449,998.85 2,009,117.62 2,661,226.19

(368,258.42) 1,081,740.43
1 0.75

5%

5%

5%

20% of basic pay

30 days

5%

2% of gross sales

30%

10% of cost

5%

7 days of yearly cost of sales

7 days sales

6 days inventory level

22,500 /month
833.33 /month
10,500 /month
600 /month
 1,150 /month
833.33 /month