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Section IV FINANCIAL PLAN

Total Capital: The group PeanutSarap will be investing P 160.00 for the operation of the business. This capital will be spent by acquiring some ingredients that will be used in producing the products of the company.

Ingredients to be used in making the products: Oil Lumpia Wrapper Peanuts Sugar Margarine Chocolate Syrup Total Capital P 11 / 40 pcs P 7 / 40 pcs P 16.5 / 40 pcs P 6 / 40 pcs P 5 / 40 pcs P 100 P 160

Financial Statements: PEANUTSARAP GROUP Projected Income Statement For the month ended September 12, 2013

Sales: Less: Cost of Sales NET INCOME

P 1350 (1001.00) P 349.00 P 349.00

PEANUTSARAP GROUP Statement of Projected Cash Flow For the month ended September 12, 2013

Cash flows from operating activities: Cash received from customers Cash paid for expenses Net Cash provided by operating activities Cash flows from financing activities: Investment by PeanutSarap Group Net cash provided by financing activities: Net increase in cash Cash balance September 12 160.00 160.00 P 509.00 P 509.00 P 1350.00 1001.00 P 349.00

PEANUTSARAP GROUP Projected Balance Sheet As of September 12, 2013

ASSETS Cash TOTAL ASSETS P 509.00 P 509.00

LIABILITIES & OWNERS EQUITY PEANUTSARAP Capital TOTAL LIABILITIES&OE P 509.00 P 509.00

Financial analysis: Profitability Ratios: Month 1 1) Return on Assets (ROA) ROA = Net Income / Total Assets ROA = 349.00 / 509.00 ROA = 0.6857 or 68.57% This shows the rate of return the business earned for a peso of investment. A high rate means the assets are being used profitably by the business.

2) Return on Equity ROE = Net Income / Owners Equity ROE = 349.00 / 160 ROE = 2.1813 or 218% This means that the owners of the business are earning 218% on the investment made.

3) Net Profit Margin Net Profit Margin = Net Income / Sales Net Profit Margin = 349.00 / 1350.00 Net Profit Margin = 0.26% This shows the sufficiency of the sales to earn profit. 0.26% of the revenues earned went to profit, or for a P1 of product rendered, the business earned P.0026 profit. The higher the ratio, the more profitable the business is.

Liquidity Ratio: 1. Current Asset Ratio Current Asset Ratio = Current Assets / Current Liabilities Current Asset Ratio = 509.00 / 0 Current Asset Ratio = 509:0 This means that the business has no current assests to pay for a peso of liability. 2. Quick Asset Ratio Quick Ratio = Current Assets Inventories / Current Liabilities Quick Ratio = ( 509.00 0 ) / 0 Quick Ratio = 509:0 This shows that the business has no quick assets to pay for a peso of liability. Leverage Ratio: 1. Debt equity ratio Debt equity ratio = debt or liabilities / Total assets Debt equity ratio = 0 / 509 Debt equity ratio = 0 % This means that 100% of the assets are claimable by the owners making the business very established.

2. Break-even point BEP = FC / (P VC) BEP = break-even point FC = Fixed Cost = 0 P = Price

VC = variable costs per unit PeanutRoll BEP = 0 / (2.5 1.14) BEP = 0 / 1.36 BEP = 0 units The company is getting P1.36 contribution toward covering fixed costs from each unit sold.

3. Investment analysis

The amount of investment that will be placed by the owner will be used for the following expenses: Ingredients to be used in making the products: Oil Lumpia Wrapper Peanuts Sugar Margarine Chocolate Syrup Total Capital P 11 / 40 pcs P 7 / 40 pcs P 16.5 / 40 pcs P 6 / 40 pcs P 5 / 40 pcs P 100 P 160

4. Supporting schedules All of the supporting schedules are attached for easy reference and future activities of the business.

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