Financial Assumption

1. The proponents will have 2 million as a capital

2. Expenses are expected to increase 1% annually

3. Profit and losses among the partners are equally distributed

4. All sales are assumed as cash sales and no sales are made on account

5. The useful life of non-cash assets are as follows:

a. Office Equipment 5 years

b. Machinery and Equipment 5 years

c. Furniture and Fixtures 3 years

d. Leasehold and Equipment 2 years

6. Pre- operating expenses will be expensed outright on the first year of operation.

7. Selling and administrative expenses increased to 1% per year

8. The straight-line method of depreciation will be used in depreciating equipment and furniture and

fixtures, no salvage value will be recognized

9. Raw materials ending inventory is 5%

10. Accounts payable is equivalent to 15% of total purchases for the year, 10% of it will be paid at

year end

11. Ending balance of income tax payable is for the last quarter of the year

12. Ending balances of VAT payable, SSS, Philhealth and HDMF and withholding tax payable is for

the last month of the year

13. Office rental is equal to 2months advance and 1month deposit. Store rental is equal to 1month

deposit.
14. Selling price increases 3 % every year

Variety Selling Price Percent Increase Amount after a 1

year increase

Paco salad 95.00 3% 97.85

Chopsuey 165.00 3% 169.95

Belly fit 70.00 3% 72.10

15. Sales increases are not the same every year depending on the fluctuation of demands of

consumers.

16. Raw Material Purchases increased 1% every year

17. The business started with a production of 3,000 fillet composed of 3 varieties in the year 2017

and these shall be an increase of 3% as the operation continues the next succeeding year that all

finished goods are consumed and sold.

18. The cost of raw materials end is equivalent to 10% of the total raw materials available for sale

19. Breakdown of salary expenses

No. of Total Monthly Total Annual

Position Employee Salary Salary 13th Month Pay
General Manager 1 15,000.00 180,000.00 15,000.00

Cashier 1 12,000.00 144,000.00 12,000.00

Bookkeeper 1 12,000.00 144,000.00 12,000.00

Production Manager 1 14,700.00 176,400.00 14,700.00

Chef 1 13,800.00 165,600.00 13,800.00

Assistant chef 4 12,600.00 152,200.00 12,600.00

Store crew 5 11,400.00 136,800.00 11,400.00

Gardener 3 11,400.00 136,800.00 11,400.00

Total 17 102,900.00 1,235,800.00 102,900.00