Professional Documents
Culture Documents
This chapter analyzes the financial capability of the proposed business. This will present and discuss the total
project cost, the sources of funds, assumptions used in financial projected financial statements and financial analysis.
The total project cost is total amount of funds needed to finance the project. This consisted of pre-operation
cost and operating cost. The pre-operation cost is composing of the rent expense, renovation expense, production
equipments and organizational cost (permits and licenses). The operating cost is composing of the office equipment,
office expenses and furniture’s and fixtures. The proposed project will require an investment of Php 561,821.50. The
Casa Bambini
Projected Project Cost
Cost per unit Quantity Cost Total Cost
Office Equipment
Desktop computer Php 16,990 1 Php 16,990
Printer 5,000 1 5,000
Flat screen Tv 15,000 1 15,000
DVD Player 1,500 1 1,500
Speaker 3, 000 1set 3, 000
Air Conditioner (split type) 15,000 2 30,000
Microwave oven 2,795 1 2,795
Ceiling fan 1,149 2 2,298.00
Rice cooker 899 1 899
CCTV 1,500 2 3,000 Php 80,482.00
Office Furniture & Fixtures
Office table Php 4, 500 1 Php 4, 500
Computer table 1, 500 1 1, 500
Sofa 5, 000 1 5, 000
Chairs (kids) 350 10 3, 500
Long table (kids) 1, 500 1 1, 500
Office chair 2, 400 1 2, 400
Wall clock 250 1 250
Kitchen table 700 1 700
Kitchen utensils 1, 500 1 set 1, 500
Alphabet &numerical Mat 300 100 (300 pesos 7, 500
by 4pcs.)
Bath towel 1, 000 20 1, 000
Kitchen stove 2, 000 1 2, 000
Flash valve toilet 10, 000 2 10, 000
Toilet bowl (kids) 10, 000 2 10, 000
Mirror bath 380 1 380
Cleaning materials 1, 000 1 set 1, 000
Customize cabinets & book shelfs 30, 000 Set 30, 000 82,730.00
Others Non Current Assets
Children Books Php 1, 400 10 Php 1, 400
Animal fingers puppet 348 1set 348
Musical instrument toys 390 1 390
Children’s posters & charts 75 5 75
Leggo 349.5 1 set 349.5
Puzzle 622 2 set 622
Blocks 765 3 765
Toys 3, 000 set 3, 000
Sleeping Materials 5,000 set 5,000 11,049.50
Pre-operating Expenses
Renovation Cost 350,000.00
Business Registration and Permits 12,560.00
Advertising Expense 25,000.00
TOTAL Php 561,821.50
Sources of Financing
The proposed business has a total of eight (8) capitalist and agreed to contribute Php100,000.00 each in
order to raise the amount of Php 800,000.00 that will be use for the operation of the business.
Table 24
Casa Bambini
Return on Total Assets
Year Net Income Average Asset ROA Percent
2017
2018
2019
2020
2021
Casa Bambini
Return on Equity
Year Net Income Average Equity ROE Percent
2017
2018
2019
2020
2021
Casa Bambini
Return on Investment
Year Net Income Investment ROI Percent
2017
2018
2019
2020
2021
Casa Bambini
Return on Total Assets
Investment Cash Inflow(Outflow) Year
Utilities Expense
It is assumed that the project will have a connected load of 100 kilowatts. The cost of power directly
attributable to project is estimated to be Php 25,000.00 in 2017 and there will be increase by 2% annually to cover
Table25
Utilities Expense
Utilities Expense
2017 Php 25,000.00
2018 25,500.00
2019 26,010.00
2020 26,530.20
2021 27,060.80
Expense for production uniform are estimated to be Php 4,650.00 and there will be no increase since that stated
amount quoted is more than enough for one (1) year operation.
Table 26
Expense for office supplies are estimated to be Php 5,000.00 and there will be no increase since that stated
amount quoted is more than enough for one (1) year operation.
Table 28
Expense for learning and art materials are estimated to be Php 1,650.00 and estimated to increase by 1% annually
Table 29
Expense for repair and maintenance are estimated to be Php 3,000.00 and there will be no increase since that stated
amount quoted is more than enough for one (1) year operation.
Table 30
Expense for other tax and licenses are estimated to be Php and estimated to increase by 1% annually to cover
Table 31
Expense for rent are estimated to be Php 30,000.00 per month and there will be no increase since that stated amount
Table 32
Rent Expense
Rent Expense
2017 Php 360,000.00
2018 360,000.00
2019 360,000.00
2020 360,000.00
2021 360,000.00
Salaries Expense
Expense for the salaries are estimated to be Php 1,512,240 for year 2017 and estimated to increase by 1%
Table 33
Salaries Expense
Salaries Expense
2017 2018 2019 2020 2021
General Manager 25,000 25,250 25,502.50 25,757.53 26,015.10
Financial Auditor 20,000 20,200 20,402 20,606.02 20,812.08
SPED Teacher 18,000 18,180 18,361.8 18,545.42 18,730.87
Childcare Worker 1 5,920 5,979.2 6,038.99 6,099.38 6,160.38
Childcare Worker 2 5,920 5,979.2 6,038.99 6,099.38 6,160.38
Childcare Worker 3 5,920 5,979.2 6,038.99 6,099.38 6,160.38
Childcare Worker 4 5,920 5,979.2 6,038.99 6,099.38 6,160.38
Childcare Worker 5 5,920 5,979.2 6,038.99 6,099.38 6,160.38
Childcare Worker 6 5,920 5,979.2 6,038.99 6,099.38 6,160.38
Cook 2,500 2,525 2,550.25 2,575.75 2,601.51
Nurse 15,000 15,150 1,5301.5 15,454.52 15,609.06
Guard 10,000 10,100 10,201 10,303.01 1,0406.04
Monthly Total 126,020 127,280 128,553 129,839 131,137
Annual Total 1,512,240.00 1,527,362.40 1,542,635.88 1,558,062.36 1,573,643.28
Table 34
Casa Bambini
Projected Comprehensive Income Statement
2017 2018 2019 2020 2021
Service Revenues
Cost of sales
Gross Profit
Net Income
Table 35
Schedule of Depreciation
Casa Bambini
Schedule of Depreciation (Year 2017-2021)
Cost Quantity Cost Estimated Salvage Total Annual Total Annual 2017 2018 2019 2020 2021
per Useful life Value per Salvage Depreciation Depreciation
unit unit Value per unit
Office Equipment
Desktop computer 16,990 1 16,990 10 2000 2000 1499 1499
Printer 5,000 1 5,000 8 500 500 562.5 562.5
Flat screen Tv 15,000 1 15,000 8 1500 1500 1687.5 1687.5
DVD Player 1,500 1 1,500 6 300 300 200 200
Speaker 3, 000 1set 3, 000 10 500 500 250 250
Air Conditioner 15,000 2 30,000 10 1500 3000 1350 2700
Microwave oven 2,795 1 2,795 6 295 295 416.67 416.67
Ceiling fan 1,149 2 2,298.00 8 149 298 125 250
Rice cooker 899 1 899 5 100 100 159.8 159.8
CCTV 1,500 2 3,000 8 300 600 150 300
Total 8025.47 8025.47 8025.47 8025.47 8025.47
Office Furniture &
Fixtures
Office table 4, 1 4, 500 8 500 500 500 500
500
Computer table 1, 500 1 1, 500 8 200 200 162.5 162.5
Sofa 5, 000 1 5, 000 10 800 800 420 420
Chairs (kids) 350 10 3, 500 6 50 500 50 500
Long table (kids) 1, 500 1 1, 500 8 200 200 162.5 162.5
Office chair 2, 400 1 2, 400 6 400 400 333.33 333.33
Wall clock 250 1 250 8 0 0 0 0
Kitchen table 700 1 700 8 100 100 75 75
Kitchen utensils 1, 500 1 set 1, 500 6 100 100 233.33 233.33
Alphabet &numerical 300 100 (300 7, 500 6 40 4000 43.33 4333.33
Mat pesos by
4pcs.)
Bath towel 50 20 1, 000 3 10 200 13.33 266.6
Kitchen stove 2, 000 1 2, 000 8 200 200 225 225
Flash valve toilet 5, 000 2 10, 000 10 500 1000 450 900
Toilet bowl (kids) 5, 000 2 10, 000 10 500 1000 450 900
Mirror bath 380 1 380 6 80 80 50 50
Cleaning materials 1, 000 1 set 1, 000 5 100 100 180 180
Customize cabinets & 30, Set 30, 000 10 3000 3000 2700 2700
book shelfs 000
Total 11941.59 11941.59 11941.59 11941.59 11941.59
Others Non Current
Assets
Children Books 140 10 1, 400 6 20 20 20 20
Animal fingers puppet 348 1set 348 6 60 60 48 48
Musical instrument toys 390 1 390 6 90 90 50 50
Children’s posters & 15 5 75 8 0 0 1.88 15.04
charts
Leggo 349.5 1 set 349.5 6 49.5 49.5 50 50
Puzzle 311 2 set 622 6 51 102 43.33 86.67
Blocks 255 3 765 6 55 165 33.33 100
Toys 3, 000 set 3, 000 6 200 200 466.67 466.67
Sleeping Materials 5,000 set 5,000 8 500 500 562.5 562.5
Total 1398.88 1398.88 1398.88 1398.88 1398.88
Table 36
Casa Bambini
Projected Statement of Cash flow
2017 2018 2019 2020 2021
BEGINNING CASH BALANCE
CASH INFLOWS
Net income from operations:
Add Noncash changes:
Depreciation Expense 21,365.94 21,365.94 21,365.94 21,365.94 21,365.94
Less increase in current assets
Total Cash inflows
CASH OUTFLOWS
Income Tax Payment
Acquisition of fixed assets
Casa Bambini
Projected Statement of Changes in Partner’s Equity
2017 2018 2019 2020 2021
Aracap Capital 51,555.00
ADD: Profit
Casa Bambini
Projected Statement of Financial Position
2017 2018 2019 2020 2021
ASSETS
Current Assets
Cash and Cash Equivalents 231,528.50
Accounts Receivables 0 0 0 0 0
Learning and Art Materials 1,650.00
Office Supplies 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Total Current Assets
Non-Current Assets
Office Furniture and Fixture 80,482.00 80,482.00 80,482.00 80,482.00 80,482.00
Less: Accumulated Depreciation 8025.47 16,050.94 24,076.41 32,101.88 40,127.35
Office Equipment 82,730.00 82,730.00 82,730 82,730.00 82,730.00
Less: Accumulated Depreciation 11,941.59 23,883.18 35,824.77 47,766.36 59,707.95
Other Non-Current Asset 11,049.50 11,049.50 11,049.50 11,049.50 11,049.50
Less: Accumulated Depreciation 1,398.88 2,797.76 4,196.64 5,595.52 6,994.40
total Non-Current Asset
TOTAL ASSETS
Casa Bambini
Projected SSS, Pagibig, Philhealth, Withholding Tax and 13th Month Pay for 2017
(in thousands)
Position Monthly Salary SSS Pagibig Philhealth Withholding 13thMonth
Tax Pay
ER EE ER EE ER EE
General Manager 25 1.1787 0.5813 0.1 0.1 0.3125 0.3125 3.9183 25
Financial Auditor 20 1.1787 0.5813 0.1 0.1 0.25 0.25 2.68392 20
SPED Teacher 18 1.1787 0.5813 0.1 0.1 0.225 0.225 2.19018 18
Childcare Worker 1 5.92 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 5.92
Childcare Worker 2 5.92 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 5.92
Childcare Worker 3 5.92 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 5.92
Childcare Worker 4 5.92 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 5.92
Childcare Worker 5 5.92 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 5.92
Childcare Worker 6 5.92 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 5.92
Cook 2.5 - - - - - - - -
Nurse 15 - - - - - - -
Guard 10 0.7367 0.3633 0.1 0.1 0.125 0.125 0.6204 10
Monthly Total 126.02 6.9248 3.4152 1 1 1.5125 1.5125 9.96402 108.52
Annual Total 1512.24 83.0976 40.9824 12 12 18.15 18.15 119.56824 -
Casa Bambini
Projected SSS, Pagibig, Philhealth, Withholding Tax and 13th Month Pay for 2018
(in thousands)
Position Monthly Salary SSS Pagibig Philhealth Withholding 13thMonth
Tax Pay
ER EE ER EE ER EE
General Manager 25.25 1.1787 0.5813 0.1 0.1 0.3125 0.3125 3.9808 25.25
Financial Auditor 20.2 1.1787 0.5813 0.1 0.1 0.25 0.25 2.73393 20.2
SPED Teacher 18.18 1.1787 0.5813 0.1 0.1 0.225 0.225 2.23518 18.18
Childcare Worker 1 5.9792 0.442 0.218 0.1 0.1 0.1 0.1 0.09779 5.9792
Childcare Worker 2 5.9792 0.442 0.218 0.1 0.1 0.1 0.1 0.09779 5.9792
Childcare Worker 3 5.9792 0.442 0.218 0.1 0.1 0.1 0.1 0.09779 5.9792
Childcare Worker 4 5.9792 0.442 0.218 0.1 0.1 0.1 0.1 0.09779 5.9792
Childcare Worker 5 5.9792 0.442 0.218 0.1 0.1 0.1 0.1 0.09779 5.9792
Childcare Worker 6 5.9792 0.442 0.218 0.1 0.1 0.1 0.1 0.09779 5.9792
Cook 2.525 - - - - - - - -
Nurse 15.15 - - - - - - - -
Guard 10.1 0.7387 0.3633 0.1 0.1 0.125 0.125 0.63504 10.1
Monthly Total 127.2802 6.9268 3.4152 1 1 1.5125 1.5125 10.17169 109.6052
Annual Total 1527.3624 83.1216 40.9824 12 12 18.15 18.15 122.06028
Casa Bambini
Projected SSS, Pagibig, Philhealth, Withholding Tax and 13th Month Pay for 2019
(in thousands)
Position Monthly Salary SSS Pagibig Philhealth Withholding 13thMonth
Tax Pay
ER EE ER EE ER EE
General Manager 25.5025 1.1787 0.5813 0.1 0.1 0.3125 0.3125 4.04392 25.5025
Financial Auditor 20.402 1.1787 0.5813 0.1 0.1 0.25 0.25 2.78442 20.402
SPED Teacher 18.3618 1.1787 0.5813 0.1 0.1 0.225 0.225 2.28062 18.3618
Childcare Worker 1 6.03899 0.442 0.218 0.1 0.1 0.1 0.1 0.10977 6.03899
Childcare Worker 2 6.03899 0.442 0.218 0.1 0.1 0.1 0.1 0.10977 6.03899
Childcare Worker 3 6.03899 0.442 0.218 0.1 0.1 0.1 0.1 0.10977 6.03899
Childcare Worker 4 6.03899 0.442 0.218 0.1 0.1 0.1 0.1 0.10977 6.03899
Childcare Worker 5 6.03899 0.442 0.218 0.1 0.1 0.1 0.1 0.10977 6.03899
Childcare Worker 6 6.03899 0.442 0.218 0.1 0.1 0.1 0.1 0.10977 6.03899
Cook 2.55025 - - - - - - - -
Nurse 15.3015 - - - - - - - -
Guard 10.201 0.7387 0.3633 0.1 0.1 0.125 0.125 0.65018 10.201
Monthly Total 128.55299 6.9268 3.4152 1 1 1.5125 1.5125 10.41776 110.7012
Annual Total 1542.6359 83.1216 40.9824 12 12 18.15 18.15 125.01312
Casa Bambini
Projected SSS, Pagibig, Philhealth, Withholding Tax and 13th Month Pay for 2020
(in thousands)
Position Monthly Salary SSS Pagibig Philhealth Withholding 13thMonth
Tax Pay
ER EE ER EE ER EE
General Manager 25.75753 1.1787 0.5813 0.1 0.1 0.3125 0.3125 3.9183 25.75753
Financial Auditor 20.60602 1.1787 0.5813 0.1 0.1 0.25 0.25 2.68392 20.60602
SPED Teacher 18.54542 1.1787 0.5813 0.1 0.1 0.225 0.225 2.19018 18.54542
Childcare Worker 1 6.09938 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 6.09938
Childcare Worker 2 6.09938 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 6.09938
Childcare Worker 3 6.09938 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 6.09938
Childcare Worker 4 6.09938 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 6.09938
Childcare Worker 5 6.09938 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 6.09938
Childcare Worker 6 6.09938 0.442 0.218 0.1 0.1 0.1 0.1 0.09187 6.09938
Cook 2.57575 - - - - - - - -
Nurse 15.45452 - - - - - - - -
Guard 10.30301 0.7735 0.3815 0.1 0.1 0.125 0.125 0.6204 10.30301
Monthly Total 129.83853 6.9616 3.4334 1 1 1.5125 1.5125 9.96402 111.8083
Annual Total 1558.0624 83.5392 41.2008 12 12 18.15 18.15 119.56824
Casa Bambini
Projected SSS, Pagibig, Philhealth, Withholding Tax and 13th Month Pay for 2021
(in thousands)
Position Monthly Salary SSS Pagibig Philhealth Withholding 13thMonth
Tax Pay
ER EE ER EE ER EE
General Manager 26.0151 1.1787 0.5813 0.1 0.1 0.325 0.325 4.16931 26.01511
Financial Auditor 20.81208 1.1787 0.5813 0.1 0.1 0.25 0.25 2.88694 20.81208
SPED Teacher 18.73087 1.1787 0.5813 0.1 0.1 0.225 0.225 237289 18.730.87
Childcare Worker 1 6.16038 0.442 0.218 0.1 0.1 0.1 0.1 1.1591 6.16037
Childcare Worker 2 6.16038 0.442 0.218 0.1 0.1 0.1 0.1 1.1591 6.16037
Childcare Worker 3 6.16038 0.442 0.218 0.1 0.1 0.1 0.1 1.1591 6.16037
Childcare Worker 4 6.16038 0.442 0.218 0.1 0.1 0.1 0.1 1.1591 6.16037
Childcare Worker 5 6.16038 0.442 0.218 0.1 0.1 0.1 0.1 1.1591 6.16037
Childcare Worker 6 6.16038 0.442 0.218 0.1 0.1 0.1 0.1 1.1591 6.16037
Cook 2.60151 - - - - - - - -
Nurse 15.60906 - - - - - - - -
Guard 10.40604 0.7735 0.3815 0.1 0.1 0.125 0.125 0.67821 10.40604
Monthly Total 131.13694 6.9616 3.4334 1 1 1.525 1.525 237303.689 112,926.30
Annual Total 1573.6433 83.5392 41.2008 12 12 18.3 18.3 2847644.27