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CHAPTER VI

FINANCING ASPECT
Every business enterprise truly needs money in order to operate and
obtain profit in return. From starting up the business until its subsequent
operations entails the incessant outflow of funds. Without the availability of
money, the business will not be able to provide enough financial sources and
utilization.
Financing aspect includes the acquisition of monetary resources in the
preparation of the business for operation, the procurement of capital at the least
possible cost, the efficient management and deployment of the available capital.
This aspect would also help the management in decision making as to the most
practical and cheapest way of financing the business. It serves as a benchmark
on the effectivity of the owner in the utilization of both human and non-human
resource for the success of the business. Proper planning and enough attention
must be afforded to the financing aspect to avoid and prevent inappropriate
usage of money that may lead to inadequacy of funds.
SOURCES OF FINANCING
The source of funding of any business firm depends on the nature of the
business. A key point in finance is the time value of money which states that
purchasing power of one unit of currency can vary over time. Finance aims to
price assets based on their risk level and their rate of return. In the event that the
owners does not have sufficient additional financial resources, then the firm can

resort to borrowing from institutional lenders such as banks and financing


companies.
Since the proposed project is sole proprietorship. The implementer should
provide the initial capital which is estimated to be PHP 358,230.10 whether from
his own savings or borrowed from different sources. The succeeding pages are
the details of the estimated project costs.

ESTIMATED PROJECT COST


Pre-operating Expense:
11,250.0

Project Feasibility Cost

Note 1

Permits and Licenses

Note 2

12,200.00

Note 3

45,547.00

Leasehold Improvement

Note 4

38,302.25

Furniture and Fixtures

Note 5

33,775.00

Office Equipment

Note 6

20,000.00

Delivery Equipment

Note 7

70,000.00

Raw Materials

Note 8

11,748.60

Office Supplies

Note 9

3,973.00

Kitchen Supplies

Note 10

1,087.00

Packaging Supplies

Note 11

9,130.00

Cleaning Supplies

Note 12

2,698.25

0
PHP 23,450.00

Property and Equipment:


Kitchen Tools and
Equipment

Working Capital:

207,624.25

Salaries and Wages

Note 13

22,656.00

Professional Fee

Note 14

18,000.00

Utilities Expense

Note 14

24,900.00

Advertising Expense

Note 15

955.00

Fuel Expense

Note 16

9,629.00

Rent Expense

Note 17

24,000.00

Total Estimated Project

128,776.85
PHP

Cost

359,851.10

NOTES TO ESTIMATED PROJECT COST

Note 1
Project Feasibility Cost
Particulars

Amount

Printing Expense and Bookbinding

2,000.00

Photocopy

50.00

Food and Drinks

500.00

Transportation Expenses

500.00

Adviser and Panelists' Honoraria

4,000.00

DOST Testing

1,500.00

Experiment and Product Sampling Cost

2,200.00

Grammarly and Plagiarism Test

200.00

Snacks for Panelists

300.00
11,250.00

Total

Note 2
Permits and Licenses
Particulars
DTI Registration
BIR Registration
Business Permit
Barangay Clearance
Police Clearance
Mayors Permit
Sanitary Permit
Fire and Safety Clearance
Documentary Stamp for Leasing
BMBE Registration
Garbage Fee
LTO Registration
Business Tax Permit
Total

Particulars
Refrigerator
Heavy Duty Stove
Casserole Pan
Marmite
Chopping Board
Knife Holder
General Kitchen Knife
Grater
Peeler
Kitchen Scales

Note 3
Kitchen Tools and Equipment
Quantity Unit
Unit Cost
1
unit
28,750.00
2
unit
3,868.00
1
unit
750.00
1
unit
1,150.00
3
pc
144.00
1
pc
69.00
3
pc
54.00
3
pc
65.00
3
pc
50.00
1
unit
720.00

Amount
400.00
500.00
750.00
50.00
25.00
200.00
50.00
20.00
35.00
1,000.00
5,000.00
3,570.00
600.00
12,200.00

Total
28,750.00
7,736.00
750.00
1,150.00
432.00
69.00
162.00
195.00
150.00
720.00

Ladle
Measuring Cups
Measuring Spoons
Stainless Bowl
Tongs
Swiss Roll Tin
Wire Sieve
LPG Tank
Basin (Small)
Basin (Large)
Total

3
1
1
3
1
3
1
2
4
2

pc
set
set
pc
pc
pc
pc
unit
pc
pc

129.00
99.00
75.00
360.00
125.00
187.00
112.00
800.00
199.00
299.00

387.00
99.00
75.00
1,080.00
125.00
561.00
112.00
1,600.00
796.00
598.00
45,547.00

Note 4
Leasehold Improvement
Particulars

Quantity

Unit

Unit Cost

Total

A. Division& Kitchen Area


Labor

contractual

18,000.00

18,000.00

Thick Plywood

ply

750.00

6,750.00

Thick Plywood

ply

900.00

3,600.00

Cement

10

bag

190.00

1,140.00

Sand

15

bag

30.00

300.00

2x2x8 Coco Lumber

12

length

56.00

672.00

2x2x6 Coco Lumber

length

48.00

384.00

Nails #3

1.25

kg

45.00

56.25

Nails #2

1.25

kg

60.00

75.00

Nails #1

.5

kg

70.00

35.00

Faucet

pc

65.00

130.00

PVC Tube

10

meter

7.00

70.00

PVC Tube (Connector)

pc

20.00

60.00

Sink

pc

320.00

320.00

Fluorescent Lamp 40 W

pc

240.00

960.00

Circuit Breaker

pc

250.00

750.00

Labor (1)

day

320.00

640.00

Wire (Solid, Single) #12

15

meter

20.00

300.00

Wire (Solid, Single) #10

meter

30.00

240.00

Safety Switch

10

pc

25.00

250.00

Fluorescent Lamp 20 W

pc

110.00

220.00

Paint

gallon

400.00

1,600.00

Labor (2)

days

320.00

1,280.00

B. Electricity

C. Painting

Paint Thinner

bottle

120.00

360.00

Aluminum Roller

pc

55.00

110.00

Total

38,302.25
Note 5
Furniture and Fixtures

Particulars

Quantity

Unit

Unit Cost

Total

Office Table

unit

2,500.00

2,500.00

Exhaust Fan

unit

875.00

1,750.00

Ceiling Fans

unit

565.00

2,825.00

Plastic Chair

unit

250.00

2,000.00

Steel Table

unit

5,500.00

11,000.00

Office Chair

unit

1,250.00

1,250.00

Kitchen Cabinet

unit

3,250.00

3,250.00

Shelves

unit

2,700.00

5,400.00

Window Blinds

unit

100.00

Filing Cabinet

unit

3,500.00

Total

300.00
3,500.00
33,775.00

Note 6
Office Equipment
Particulars

Quantity

Unit

Unit Cost

Total

Computer set

unit

16,500.00

16,500.00

Printer

Unit

3,500.00

3,500.00
20,000.00

Total
Note 7
Delivery Equipment
Particulars
Motorcycle

70,000.00
Note 8
Raw Materials

Particulars

Quantity

Unit

Unit Cost

Total

Watermelon Rind

12

sacks

50.00

600.00

Carrots

60

kg

65.00

3,900.00

Ginger

1.80

kg

112.00

201.60

Garlic

1.80

kg

55.00

99.00

Onions

1.80

kg

60.00

108.00

Red Bell pepper

1.80

kg

120.00

216.00

Refined Sugar

60

kg

60.00

3,120.00

Cooking Oil

gal

128.00

512.00

Salt

kg

22.00

22.00

Cane Vinegar

30

gal

99.00

2,970.00

Total

11,748.60
Note 9
Office Supplies

Particulars

Quantity

Unit

Unit Cost

Total

Printer Ink (Colored)

ctnus

300.00

600.00

Printer Ink (Black)

ctnus

250.00

500.00

Long Bondpaper

ream

155.00

465.00

Short Bondpaper

ream

120.00

360.00

Office Receipt

booklet

75.00

375.00

Stapler

pc

72.00

72.00

Puncher

pc

150.00

150.00

Ballpen

12

pc

9.75

117.00

Wall Clock

unit

95.00

95.00

Record Book

book

30.00

60.00

File Clip

box

38.00

38.00

Calculator

unit

475.00

475.00

Pencil

doz

58.00

58.00

Pencil Sharpener

pc

5.00

10.00

Liquid Eraser

pc

25.00

50.00

Staple Wire

box

35.00

70.00

Scotch Tape

roll

19.00

38.00

Scissors

pair

22.00

44.00

Expanded Envelop (Long) 20

pc

15.00

300.00

Long-sized Folder

12

pc

5.00

60.00

Short-sized Folder

12

pc

3.00

36.00

Total Amount

3,973.00
Note 10
Kitchen Supplies

Particulars

Quantity

Unit

Unit Cost

Total

Aprons

10

Pc

38.00

380.00

Face Masks

pack

56.00

56.00

Hair Nets

pack

79.00

79.00

Disposable Gloves

pack

63.50

127.00

Kitchen Towels

pack

49.00

245.00

Pot Holders

Pc

15.00

90.00

Apron Hanger

Pc

55.00

110.00

Total

1,087.00
Note 11
Packaging Supplies

Particulars

Quantity

8oz Bottles

15

Unit

Unit Cost

Total

box

425.00

6,375.00

750.00

750.00
105.00

Customized Cloth

1/2

roll

Tie

15

meter

7.00

Plastic Container

30

pc

45.00

1,350.00

Stickers

20

pack

65.00

1,300.00

Total

9,130.00

Note 12
Cleaning Supplies
Particulars
Broom
Dust pan
Rags

Quantity
2
2
24

Unit
Pc
pc
pc

Unit Cost
45.50
50.00
1.00

Total
91.00
100.00
24.00

Floor Mop
Garbage Can
Foot Rags
Garbage Bag
Pail
Dipper
Dishwashing Soap
Sponge and Scrub

1
2
4
5
3
3
2
6

pc
pc
pc
Packs
Pc
Pc
bottles
Pc

149.00
100.00
69.00
95.00
239.75
25.00
205.00
9.00

149.00
200.00
276.00
475.00
719.25
75.00
410.00
54.00

Hand Sanitizers
Total

Bottle

125.00

125.00
2,698.25

Note 13
Salaries and Wages
Daily
Particulars

Rate

Days

Total Cost

Cook

236

5,664.00

Kitchen Personnel

236

5,664.00

Delivery Man

236

5,664.00

Manager/Cashier/Owner

236

5,664.00

Total

22,656.00

Particulars
Bookkeeper

No.
1

Note 14
Professional Fee
Monthly Rate
No. of Mos.
3,000.00
6

Total
18,000.00

Note 15
Utilities Expense
Particulars

Monthly Rate

No. of Mos.

Total

Light

1,600.00

9,600.00

Water

1,200.00

7,200.00

Communication

1,350.00

8,100.00

Total

Php 24,900.00
Note 16
Advertising Expense

Particular
Flyers
Particular
Online Advertising
Building
Total

Note 17
Rent Expense

Total Cost
500.00
Total Cost
455.00
12,000.00
Php 955.00

Security Deposit

12,000.00

Total

24,000.00

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