Feasibility Study

Financial Estimates and Analysis Chapter 6

Archt Jesus Aguas Professor Arrence G. Dela Pea BS Architecture 4

Financial Estimates and Analysis Outline

Chapter 6

1.Financial Estimates
a. Projected Income Statement b. Projected Cash Flow c. Proforma Balance Sheet d. Assumptions, Schedules, and Computations supporting the above ( items a, b, c )

2.Financial Analysis
a. Return on Investment (ROI) b. Sales volume and sales price sensitivity tests.

KUYA EXAMPLE YA YN
Projected Customers For the year 2013, Arayat total population was 118, 312 classified as the upper (citizens who have the highest income and bank savings), the middle (stable living) and the lower class (minimum income/ living near agricultural land). Table Presenting Customers per Month Prospects Upper class Middle class Lower class Total 118,312 Population x % 10% 60% 30% 100% Totality 11,831 70,987 35,494 118,312 Assumed Prospect 10% 50% 10% _______ Total Prospect 1,183 35,494 3,549 40,226

Aside from the total number of customers above, another target market was projected. These are the passers-by. A projected 4,000 passers-by per month will be computed for additional customers. Therefore: 40,226 + 4,000 = 44,226 total average of prospect (target market) per month. Considering the number above is constant, and then we have: 44,226 x 12 (months) = 530,712 customers in a year. Projected Sales Table Presenting Sales per Month Prospects Upper Class Middle Class Lower Class Passers-by total No.of Prospects 1,183 35,494 3,549 4,000 44,226 Multiply X X X X ______ Approximate Price Menu 170 php 100 php 50 php 100 php _______ Sales 201,110 php 3,549,400 php 177,450 php 400,000 php 4,327,960 php

Considering the calculated sales/month is 4,327,960 Php we multiply it by 12 (months) to get the total sales in the year ended. 4,327,960 Php x 12 (months) = 51,935,520 Php SALES in a year

SALARIES AND WAGES COMPUTATION: Employees No. of hours duty per day Rate per hour : Part-time : minimum of 4 hours : Php42.00

Php42.00 per hour x 4 hours = Php168.00 x 26 days (excluding 4 days off) = Php4,368.00 Php4,368.00 (167 + 50 + 367 + 139) = 3,645.00 x 40 employees = Php145,800.00 monthly salaries of Part time employees Php22,000.00 x 5 managers = Php110,000.00 + Php27,000.00 Php145,800.00 monthly salaries of Part time employees Php137,000.00 monthly salary of the 5 managers and the store manager Php282,800.00 x 12 months = 3,393,600.00 = Php137,000.00

FRESH OPTION

INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014

SALES LESS: OPERATING EXPENSES

SALARIES WAGES ELECTRIL BILL WATER BILL TELEPHONE BILL DELIVERY EXPENSES REPAIR & MAINTENANCE DONATIONS INSURANCE LEGAL EXPENSES: 861,042.00 480,000.00 120,000.00 7,200.00 240,000.00 30,000.00 12,000.00 30,000.00

11,896,869.6

BUSINESS PERMIT
BUILDING PERMIT FIRE SAFETY EVALUATION CLEARANCE

2,000.00 2,205.19 1,057.50 1,677,486.69 1,677,486.69

TOTAL:

GROSS INCOME:
TAX PROVISION OF 25 %

10,219,382.91
X .35

NET INCOME:

3,576,784.019

FRESH OPTION

BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 2014

ASSET
CURRENT ASSET
CASH ON HAND/IN BANK INVENTORY END TOTAL CURRENT ASSET:

FIXED & OTHER ASSET:

BUILDING STORE EQUIPMENT SEVICE VEHICLE TOTAL: LESS: ACC. DEPRECIATION TOTAL BOOK VALUE: LAND 311 SQM. TOTAL FIXED & OTHER ASSET 1,057,500.00 609,200.00 240,000.00 1,906,700.00 150,000.00 1,756,700.00 4,665,000.00 6,421,700.00

TOTAL ASSET:

LIABILITIES & CAPITAL

LIABILITIES
ACCOUNT PAYABLE NONE

CAPITAL:
FRESH OPTION, CAPITAL ADD. NET INCOME TOTAL LESS: WITHDRAWAL

STORE HOURS:

6:00 7:00 am -OPENING 7:00 8:00 pm -OPERATING HOURS 7:00 7:30 CLOSING

6am-1pm

- 1 SHIFT 4 EMPLOYEES

1pm-7:30pm - 2 SHIFT 4 EMPLOYEES

PRODUCT PRICE:

CHICKEN 140/KL BEEF 200/KL PORK 190/KL OTHER PRODUCTS 100/KL

KUYA PAG ATIN NG INCOME STATEMENT TSKA BALANCE SHEET AKWA MUNE DW ING CASH FLOW??PKI CHECK NAMU KUNG ISTU GEWA KU ATSU LA KEN DNG COMPUTATION..DNG ALIWA PLA KEN ALA LAPA ALI KULA BALU E DYAAN U NYA..SALAMAT..PATI ROI PLA ALA KUPA ALI KE BALU E.. KUYA PATI PLA INCOME STATEMENT N BALANCE SHEET NING OWNER KU DAYAAN U NAYA ALI KU MNIKWANG INFO E CONFIDENCIAL DW KC.

DR.ROBERT H. LO

INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014

DR.ROBERT H. LO

BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 2014