NOVEMBER FINANCIAL REPORT A.

Actual Performance of the Month For the month of November, the company has started accepting orders and deliveries aside from the sales gained from the operations in the stall. Below are the financial statements for the month:

Kaizen Company Statement of Financial Position For the month of November

ASSETS Cash Equipment Less: Accumulated Depreciation 3,577.28 2,239.42 197.32 5,619.38

Total Assets

EQUITY Beginning Capital Add: Net Income Total Equity 4,918.71 700.67 5,619.38

Kaizen Company Income Statement For the month of November

Sales ( 251units X 20php ) Less: Direct Materials Direct Labor ( 251 units x 1.50 ) Contribution Margin

5,020.00 2,356.30 376.50 2,287.20

Less: Rent Expense Transportation Expense Marketing and Selling Expenses Salaries Depreciation NET INCOME 750.00 50.00 37.20 700.00 49.33 700.67

Kaizen Company Statement of Cash flow For the month of November

OPERATING ACTIVITIES Sales Payment to Suppliers Selling Expenses Rent Expense Transportation Expense Salaries Expense Net Cash flow from Operating Activities Add: Cash Beginning Cash at the End of the Month 5,020.00 2,356.30 37.20 750.00 50.00 1,076.50 750.00 2,827.28 3,577.28

B. Projected Financial Statements for the Month of December The company would assume to have a minimum of 50% increase of sales because of the yuletide season. Furthermore, a lot of orders are already coming in so an increase in net income is forecasted. By the next month, the financial department has ordered other designated managers to further cut costs on expenses to yield an even higher net income. Kaizen Company

Statement of Financial Position For the month of December

ASSETS Cash Equipment Less: Accumulated Depreciation 7,262.28 2,239.42 246.65

Total Assets EQUITY Beginning Capital Add: Net Income Total Equity

9,255.05

5,619.38 3,635.67 9,255.05

Kaizen Company Income Statement For the month of December

Sales (500 X 20PHP ) Less: Direct Materials Direct Labor ( 500 X 1.50 ) Contribution Margin Less: Rent Expense Transportation Expense Marketing and Selling Expenses Salaries Depreciation

10,000.00 4,000.00 750.00 5,250.00 750.00 70.00 45.00 700.00 49.33

NET INCOME Kaizen Company Statement of Cash flow For the month of December

3,635.67

OPERATING ACTIVITIES Sales Payment to Suppliers Selling Expenses Rent Expense Transportation Expense Salaries Expense Net Cash flow from Operating Activities Add: Cash Beginning Cash at the End of the Month 10,000.00 4,000.00 45.00 750.00 70.00 1,450.00 3,685.00 3,577.28 7,262.28

C. Problems Encountered and Solutions Implemented

Though the rent expenses has significantly decreased, the cost of raw materials remains substantially higher. Furthermore, the company has just introduced that it will now start accepting orders and deliveries; the public is not yet well aware of this matter. Hence, the orders for the month are very minimal.

PREPARED BY: CLARICE JOBETH R. KEE FINANCIAL MANAGER ROBERT V. FERNANDEZ CASH CUSTODIAN