JMJ Marist Brothers

Notre Dame of Marbel University

Integrated Basic Education Department
Senior High School

Financial plan
Entrepreneurship
Chapter IV

Submitted to:
Ms. Josefa Carbon, MBA

Submitted by:

Ponte, marlou
Recinto, Adrian
Jaducan, noel
Diosananestor
Robles, Claire
Talagtag, kieth
 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

Financial Plan
Caterpillocks Company

Total project cost

A. Furniture and fixtures

Stall ------------------------------------------------------------- 10,000

Tables------------------------------------------------------------ 14,000
Bench------------------------------------------------------------- 9,000

B. Appliances

Computer------------------------------------------------------ 30,000
Printer---------------------------------------------------------- 5,000
Air-conditioning unit---------------------------------------- 15,000
Electric fans ------------------------------------------------- 6,000

C. Office supplies

Thermal paper---------------------------------------------- 499

Log book----------------------------------------------------- 35
Bond paper-------------------------------------------------- 500
Stapler-------------------------------------------------------- 50
Ball pen------------------------------------------------------ 80

Total fixed capital cost -------------------------------------Php 90, 164

 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

Pre-operating capital costs

A. Insurances & bonuses

PAG-IBIG---------------------------------------Php 5,000.
S.S.S---------------------------------------------Php 7,000
PHILHEALTH----------------------------------Php 300

B. Promotional measures

Tarpaulin ------------------------------------------300
Flyers ---------------------------------------------300

C. Legal permits

B.I.R Registration--------------------------------------- Php 1,500

S.S.S Registration ------------------------------------- Php 3,000
Pag-Ibig Registration----------------------------------- Php 1,500
PhilHealth Registration--------------------------------- Php 4,000
DOLE Registration-------------------------------------- Php 4,000
Training and Seminars ------------------------------- Php 2,500
Appliances Installments----------------------------- Php 1,500

TOTAL PRE-OPERATING CAPITAL COSTS----------------------- Php 30,900

 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

D. Initial working capital

Factory overhead ----------------------------------------------- Php 250,000

Utilities ------------------------------------------------------------- Php 50,000
Direct labor --------------------------------------------------------Php 200,000
Salaries -------------------------------------------------------------Php 850,000

Total initial working capital ------------------------------------ Php 1,350,000

Total cost of project ----------------------------------------------Php 1,471,064

Sources of financing
The equity capital will come from each partner’s resource each
member of the partnership will contribute Php 250,000 which would have
a total amount of Php 1,500,000 for the first year of the business, and the
on the second year of the business each member will contribute for
about Php 200,000 that will yield for about Php 1,200,000 and for the third
year of the business each member then will only contribute for about
Php 150,000 that will yield for about Php 900,000.
 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

FINANCIAL STATEMENTS
A. Cash Flows

Caterpillocks Company
Statement of cash flows
For three-year operations

Year 1 Year 2 Year 3

Cash inflow
(Received)

Receipts
Capital contribution Php 1,500,000 Php 1,200,000 Php 900, 000
Cash sales Php 1,900,000 Php 2,300,000 Php 2,700,000

Total cash
inflow----------------------------------------------------------------------------------------
3,400,000 3,500,000 3,600,000
 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

Year 1 Year 2 Year 3

Less: cash outflow
(Disbursements)

Furniture and fixtures Php 33,000 Php 10,000 Php 10,000

Appliances Php 56,000 Php 45,000 Php 20,000
Office supplies Php 1,164 Php 1,164 Php 1,164
Salaries Php 850,000 Php 850,000 Php 850,000
Insurances Php 12,300 Php 12,500 Php 12,800
Promotional measures Php 600 Php 400 Php 200
Legal permits Php 18,000 Php 3,000 Php 15,500
Initial working capital Php 1,350,000 Php 1,355,000 Php 1,360,000
Php 2,321,064 Php 2,227,064 Php 2,269,664

NET INCOME Php 1,078,936 Php 1,272,936 Php 2,240,000

 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

B. Statement of Comprehensive Income

Caterpillocks Company
Statement of comprehensive income
For three years of business

Year 1 Year 2 Year 3

Sales Php 1,900,000 Php 2,300,000 Php 2,700,000

Less:
Rent Php 20,000 Php 20,000 Php 20,000
Salaries expense Php 850,000 Php 850,000 Php850,000
Utilities expense Php 50,000 Php 50,000 Php50,000
Permits and Php 30,000 Php 3,000 Php 15,500
License expense
Employees’ benefits Php 12,300 Php 12,300 Php 12,300
Promotional expenses Phpn 600 Php 600 Php 600
Php 962,900 Php 935,900 Php 948,400

Net income: Php937,100 Php1, 364,100 Php 1,751,600

 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School
 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

C. STATEMENT OF FINANCIAL POSITION

Year 1 Year 2 Year 3

Assets
Current assets

Cash 3,400,000 3,500,000 3,600,000

Furniture and fixtures 33,000 30,000 28,000
Appliances 56,000 30,000 15,000
Office supplies 1,164 1,829 2,328
Promotional measures 600 600 600

Total assets 3,490,764 3,532,429 3,645,928

Liabilities and owners’ equity

Total liabilities 0 0 0
Owner’s capital Php 1,500,000 Php 1,200,000 Php 900, 000
Add net income Php 1,078,936 Php 1,272,936 Php 2,240,000
Total owners equity Php 2,578,936 Php 2,472,936 Php 3,140,000

Total liabilities and Php 2,578,936 Php 2,472,936 Php 3,140,000

Owner’s equity
 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

Financial Analysis

A. Return of Investment (ROI)

The return of investment refers to the profit the company will gain on an

investment. It is usually computed by dividing the net profit of the company by

the total cost of investments. The answer is expressed in percentage to show

how much the increase and decrease of the return of investment is.

Net Profit Investment Total

Year 1 P 962,900.00 P1,500,000

Year 2 P 935,900.00 P 1,200,000

Year 3 P 948,400.00 P 900, 000

B. Break Even Point (peso sales/ volume)

The breakeven point is the method to calculate whether the company will

be profitable and if it can sustain the business and cover the expenses while

still gaining profit. The formula for this is the fixed cost divided by the

contribution margin per unit. The contribution margin per unit can be obtained

by subtracting the sales price per unit from the variable cost per unit. To get

the breakeven point in pesos, multiply the breakeven point in units to the sales

price.
 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School

Contribution Margin Per Unit Total in

Fixed Cost Sales Price Variable Cost Total in Units Pesos

Per Unit Per Unit

Year 1 P 1 011 773.10 P 4345.00 179 units P 1,789,200.00

P 10 000.00
Year 2 P 992 850.00 P 4345.00 176 units P 1,755,702.00
P 10 000.00
Year 3 P 992 800.00 P 4345.00 176 units P 1,756,000.00
P 10 000.00

C. Payback Period

This refers to the amount of time it takes for the investment to be paid back.

The company's investment for the first year is P1 000 000 and the net income of

the company for the first year is P 489 300.00. Since the return of investment is

48.93 %, it would take 2 years to be able to pay back the investments for the first

year. For the succeeding years, the net income is larger than the investment so

there is a full return on the investments of the company.

 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School
 JMJ Marist Brothers
Notre Dame of Marbel University
Integrated Basic Education Department
Senior High School