FINANCIAL ASPECT

The financial aspect quantifies the result of the

marketing, management, technical and other parts of a feasibility

study. It expresses in peso terms the possible profitability of

the project.

Major Assumptions:

a. Financial Statement (FS) Presentation

The FS will be presented on a five (5) year period

from 2019-2023 based on the proponents’ assumptions.

b. Leasehold Improvement

The stall repairs will be accounted as a leasehold

improvement and will be amortized over a 10 year period.

c. Sales

The sales revenue are projected to increase by a

conservative rate of 2% every year.

d. Purchases

To cope with the increase in sales, purchases are also

projected to increase by 2% annually.

e. Office Supplies

All of the supplies of the company are expensed at the

end of the year.

f. Utilities

Ten percent (10%) of the internet fees expense of the

company will be allocated to Factory Overhead (FOH). For

the water fees expense, all of it will be allocated to FOH.

For the electricity fees expense, eighty percent (80%)

 shall be allocated to FOH and the rest shall be treated as

period cost.

g. Rent

Seventy five percent (75%) of the rented space shall

be used for the production while twenty five percent (25%)

will be used for selling and administrative purposes.

h. Ending Inventory

An ending inventory equivalent to eight percent (8%)

of the total raw material available for use for the year

shall be carried over to the following year annually.

i. Withdrawals

The owners are guaranteed to withdraw sixty thousand

pesos (Php 60,000.00) in the third year of operation and

shall increase by twenty thousand pesos (Php 20,000.00)

until the fifth year of operations. This shall take effect

regardless of the performance of the business.

j. Tax Rate

The Tax rate of the business is 30% based on the law.

k. Business Taxation

The business shall be Value Added Tax registered from

the commencement of the business.

 MARTA's TILAPIA ICE CREAM, CO.
Statement of Financial Position
as of December 31, 2019-2023

Notes 2019 2020 2021 2022 2023

ASSETS
CURRENT ASSETS
Cash SCF ₱ 729,067 ₱ 894,938 ₱ 800,002 ₱ 633,372 ₱ 394,558
Inventory 11 163,020 179,322 183,952 187,714 191,475
TOTAL CURRENT ASSETS 892,087 1,074,260 983,954 821,086 586,033
NONCURRENT ASSETS
Equipment-net 6 229,595 181,071 132,546 84,022 35,497
Furniture and Fixtures-net 6 44,999 34,087 23,174 12,261 1,348
Leasehold Improvement-net 18 108,000 96,000 84,000 72,000 60,000
TOTAL NONCURRENT ASSETS 382,595 311,157 239,720 168,283 96,845
TOTAL ASSETS ₱ 1,274,682 ₱ 1,385,417 ₱ 1,223,674 ₱ 989,369 ₱ 682,879
LIABILITIES
SSS Premiums Payable 12 9,205 9,205 9,205 9,205 9,205
PHIC Premiums Payable 13 1,925 1,925 1,925 1,925 1,925
HDMF Premiums Payable 14 1,400 1,400 1,400 1,400 1,400
VAT Payable 15 57,180 58,335 59,513 60,714 61,940
Withholding Tax Payable 16 1,500 1,500 1,500 1,500 1,500
Income Tax Payable 17 19,691 12,510 14,476 17,320 20,284
TOTAL LIABILITIES 90,901 84,875 88,019 92,064 96,254
PARTNERS' EQUITY
Ibaso, Capital SPE 236,756 260,108 227,131 179,461 117,325
Maximo, Capital SPE 236,756 260,108 227,131 179,461 117,325
Palogan, Capital SPE 236,756 260,108 227,131 179,461 117,325
Rivor, Capital SPE 236,756 260,108 227,131 179,461 117,325
Tolentino, Capital SPE 236,756 260,108 227,131 179,461 117,325
TOTAL PARTNERS' EQUITY 1,183,781 1,300,542 1,135,655 897,305 586,624

TOTAL LIABILITIES AND PARTNERS' EQUITY ₱ 1,274,682 ₱ 1,385,417 ₱ 1,223,674 ₱ 989,369 ₱ 682,879
 MARTA's TILAPIA ICE CREAM, CO.
Statement of Comprehensive Income
for the years ended December 31, 2019-2023

Note 2019 2020 2021 2022 2023

Net Sales 1 ₱ 3,962,500 ₱ 4,041,750 ₱ 4,122,585 ₱ 4,205,037 ₱ 4,289,137

Less: Cost of Sale 2 2,875,999 3,066,840 3,121,458 3,165,998 3,210,570
Gross Profit 1,086,501 974,910 1,001,127 1,039,039 1,078,568
Less: Operating Expenses
Supplies Expense 3 148,214 148,214 148,214 148,214 148,214
Utilities Expense 4 22,800 22,800 22,800 22,800 22,800
Rent Expense 5 90,000 90,000 90,000 90,000 90,000
Depreciation Expense- F & F 6 10,913 10,913 10,913 10,913 10,913
Organizational Expense 7 13,925 - - - -
13th Month Pay 8 90,678 95,754 95,754 95,754 95,754
Advertising Expense 9 22,800 14,800 14,800 14,800 14,800
Taxes and Licenses 10 5,659 6,660 6,661 6,662 6,663
Amortization Expense 18 12,000 12,000 12,000 12,000 12,000
Salaries Expense 19 406,968 406,968 406,968 406,968 406,968
Net Income Before Tax 262,544 166,801 193,018 230,929 270,457
Less: Provision for Income Tax 78,763 50,040 57,905 69,279 81,137
Net Income ₱ 183,781 ₱ 116,761 ₱ 135,113 ₱ 161,650 ₱ 189,320
 MARTA's TILAPIA ICE CREAM, CO.
Statement of Changes in Partners' Equity
as of December 31, 2019-2023

Note 2019 2020 2021 2022 2023

Ibaso, Beginning Capital ₱ 200,000 ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461

Add: Share in Net Income SCI 36,756 23,352 27,023 32,330 37,864
Less: Drawings - - (60,000) (80,000) (100,000)
IBASO, Ending Balance ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461 ₱ 117,325

Maximo, Beginning Capital ₱ 200,000 ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461

Add: Share in Net Income SCI 36,756 23,352 27,023 32,330 37,864
Less: Drawings - - (60,000) (80,000) (100,000)
MAXIMO, Ending Balance ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461 ₱ 117,325

Palogan, Beginning Capital ₱ 200,000 ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461

Add: Share in Net Income SCI 36,756 23,352 27,023 32,330 37,864
Less: Drawings - - (60,000) 100,000 (100,000)
PALOGAN, Ending Balance ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461 ₱ 117,325

Rivor, Beginning Capital ₱ 200,000 ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461

Add: Share in Net Income SCI 36,756 23,352 27,023 32,330 37,864
Less: Drawings - - (60,000) (80,000) (100,000)
RIVOR, Ending Balance ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461 ₱ 117,325

Tolentino, Beginning Capital ₱ 200,000 ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461

Add: Share in Net Income SCI 36,756 23,352 27,023 32,330 37,864
Less: Drawings - - (60,000) (80,000) (100,000)
TOLENTINO, Ending Balance ₱ 236,756 ₱ 260,108 ₱ 227,131 ₱ 179,461 ₱ 117,325
 MARTA's TILAPIA ICE CREAM, CO.
Statement of Cash Flows
for the years ended December 31, 2019-2023

2019 2020 2021 2022 2023

Operating Activities
Net Income (Loss) ₱ 183,781 ₱ 116,761 ₱ 135,113 ₱ 161,650 ₱ 189,320
Depreciation- Equipment 48,525 48,525 48,525 48,525 48,525
Depreciation- F & F 10,913 10,913 10,913 10,913 10,913
Amortization- LI 12,000 12,000 12,000 12,000 12,000
(Increase) Decrease in Raw Materials (163,020) (16,302) (4,630) (3,763) (3,761)
Increase in SSS Payable 9,205 - - - -
Increase in PHIC Payable 1,925 - - - -
Increase in HDMF Payable 1,400 - - - -
Increase in VAT Payable 57,180 1,155 1,178 1,202 1,226
Increase in Withholding Tax Payable 1,500 - - - -
Increase in Income Tax Payable 19,691 (7,181) 1,966 2,843 2,965
Net Cash from Operating Activities 183,099 165,870 205,064 233,370 261,186
Financing Activities
Initial Investment 1,000,000 - - - -
Withdrawals - - (300,000) (400,000) (500,000)
Net Cash from Financing Activities 1,000,000 - (300,000) (400,000) (500,000)
Investing Activities
Equipment (278,120) - - - -
Furnitures and Fixtures (55,912) - - - -
Leasehold Improvement (120,000) - - - -
Net Cash from Investing Activities (454,032) - - - -
Balance 729,067 165,870 (94,936) (166,630) (238,814)
Add: Cash Beginning Balance - 729,067 894,938 800,002 633,372
Cash Ending Balance ₱ 729,067 ₱ 894,938 ₱ 800,002 ₱ 633,372 ₱ 394,558
Note 1: Sales Revenue

PROJECTED ANNUAL SALES

Particular 2019 2020 2021 2022 2023
Projected
₱ 12,680 ₱ 12,934 ₱ 13,192 ₱ 13,456 ₱ 13,725
Sales
Multiply by:
312.50 312.50 312.50 312.50 312.50
Unit Price
TOTAL SALES ₱ 3,962,500 ₱ 4,041,750 ₱ 4,122,585 ₱ 4,205,037 ₱ 4,289,137
Output VAT ₱ 475,500 ₱ 485,010 ₱ 494,710 ₱ 504,604 ₱ 514,696

Note 2: Cost of Sales

Particular 2019 2020 2021 2022 2023

Raw Materials Beg ₱ - ₱ 165,442 ₱ 181,937 ₱ 186,583 ₱ 190,346
Add: Purchases 2,056,500 2,097,255 2,138,825 2,181,227 2,224,476
Freight-in 11,520 11,520 11,520 11,520 11,520
Raw Materials
2,068,020 2,274,217 2,332,282 2,379,329 2,426,342
Available for Use
Add: Direct 657,576 657,576 657,576 657,576 657,576
Add: Factory
315,845 316,985 318,182 319,439 320,759
Overhead
Total Goods
3,041,441 3,248,778 3,308,040 3,356,344 3,404,677
Available for Sale
Less: Raw
165,442 181,937 186,583 190,346 194,107
Materials, End
COST OF SALES ₱2,875,999 ₱3,066,840 ₱3,121,458 ₱3,165,998 ₱3,210,570

Note 2.1: Purchases

Annual Cost of Ingredients

Particular 2019 2020 2021 2022 2023
Tilapia ₱ 228,800 ₱ 233,376 ₱ 238,044 ₱ 242,804 ₱ 247,660
Walnut 1,496,000 1,525,920 1,556,438 1,587,567 1,619,319
Cheese 80,960 82,579 84,231 85,915 87,634
All purpose
74,800 76,296 77,822 79,378 80,966
cream
Condensed
48,400 49,368 50,355 51,362 52,390
milk
Carabao milk 228,800 233,376 238,044 242,804 247,660
Brown sugar 102,080 104,122 106,204 108,328 110,495
1L Ice Cream Tub 21,000 21,000 21,000 21,000 21,000
Iodized salt 22,440 22,889 23,347 23,814 24,290
Total 2,303,280 2,348,926 2,395,484 2,442,974 2,491,413
INPUT VAT 246,780 251,671 256,659 261,747 266,937
NET
₱ 2,056,500 ₱ 2,097,255 ₱ 2,138,825 ₱ 2,181,227 ₱ 2,224,476
PURCHASES
Note 2.2: Direct Labor

Monthly Annual
WORKER 2019-2023
Salary Salary
General Manager ₱ 21,358 ₱ 256,296 ₱ 256,296
Supervisor 17,320 207,840 207,840
Ice Cream Maker (A) 8,060 96,720 96,720
Ice Cream Maker (B) 8,060 96,720 96,720
TOTAL DIRECT LABOR ₱ 657,576

Note 2.3: Factory Overhead

Particular 2019 2020 2021 2022 2023

Utilities Expense ₱ 22,800 ₱ 23,940 ₱ 25,137 ₱ 26,394 ₱ 27,714
Depreciation 23,045 23,045 23,045 23,045 23,045
Rent Expense 270,000 270,000 270,000 270,000 270,000
Supplies 2,348 2,348 2,348 2,348 2,348
TOTAL FOH ₱ 315,845 ₱ 316,985 ₱ 318,182 ₱ 319,439 ₱ 320,759

Note 3: Supplies

Kitchen Tools Qty Price/Unit Annual Cost

Measuring cups and spoons 1 85.00 ₱ 85
Ice cream shovel 2 174.00 348
Mixing bowl 3 240.00 720
Knife sharpener 1 216.00 216
Stainless steel scale 2 150.00 300
Knife 1 299.00 299
Chopping board 2 190.00 380
Total Kitchen Tools- Direct Cost ₱ 2,348
 Office Supplies Qty Price/Unit Annual Cost
Stapler 24 35.00 ₱ 840
Staple wire 60 8.00 480
Calculator 12 364.75 4,377
Pencil 12 205.00 2,460
Permanent marker 12 449.99 5,400
Scissors 48 24.00 1,152
Long bond paper 12 840.00 10,080
Ink cartridges 48 250.00 12,000
Long folders 144 4.00 576
Ballpen 12 280.00 3,360
Envelope 12 637.00 7,644
Glue 12 709.00 8,508
Tape 36 15.00 540
Tape dispenser 12 79.00 948
Rubber bands 12 10.00 120
Sharpener 30 10.00 300
Flash drive 12 645.00 7,740
Trash can 12 75.00 900
Trash bag 120 100.00 12,000
Sticky notes 12 125.00 1,500
Flashlight 10 185.00 1,850
Total Office Supplies- Indirect Cost ₱ 82,775

Store Supplies Qty Price/Unit Annual Cost

Tissue 24 110.00 2,640
Sponge 120 11.50 1,380
Hand soap 60 36.50 2,190
Hair net 300 19.00 5,700
Gloves 24 65.00 1,560
Apron 200 59.00 11,800
Kitchen Towel 30 54.50 1,635
Dishwashing Liquid 120 86.75 10,410
Trash bag 120 57.70 6,924
Floor map 24 350.00 8,400
Flourescent lamp 40 250.00 10,000
Soft broom 20 70.00 1,400
Dust pan 20 70.00 1,400
Total Store Supplies- Indirect Cost ₱ 65,439

Total Direct Cost ₱ 2,348

Total Indirect Cost ₱ 148,214

TOTAL SUPPLIES EXPENSE ₱ 150,562

Note 4: Utilities

Total Annual Cost Annual Cost

Particular
Annual Cost Attributable to FOH Attributable to OPEX

Internet ₱ 12,000 ₱ 1,200 ₱ 10,800

Water 3,600 3,600 -
Electricity 60,000 48,000 12,000
TOTAL COST ₱ 75,600 ₱ 52,800 ₱ 22,800

Note 5: Rent Expense

Annual Cost Annual Cost

Annual
Particular Attributable Attributable
Cost
to FOH to OPEX
Rent expense- direct cost (75%) ₱ 270,000 ₱ 270,000 -
Rent expense- indirect cost (25%) 90,000 - 90,000
TOTAL COST ₱ 360,000 ₱ 270,000 ₱ 90,000

Note 6: Lapsing Schedule

Equipment 2019 2020 2021 2022 2023

Beginning Balance ₱ 278,120 ₱ 229,595 ₱ 181,071 ₱ 132,546 ₱ 84,022
Additions - - - - -
Disposals - - - - -
Depreciation 48,525 48,525 48,525 48,525 48,525
Accumulated
48,525 97,049 145,574 194,098 242,623
Depreciation
Ending Balance ₱ 229,595 ₱ 181,071 ₱ 132,546 ₱ 84,022 ₱ 35,497

Furniture and Fixtures 2019 2020 2021 2022 2023

Beginning Balance ₱ 55,912 ₱ 44,999 ₱ 34,087 ₱ 23,174 ₱ 12,261
Additions - - - - -
Disposals - - - - -
Depreciation 10,913 10,913 10,913 10,913 10,913
Accumulated
10,913 21,825 32,738 43,651 54,564
Depreciation
Ending Balance ₱ 44,999 ₱ 34,087 ₱ 23,174 ₱ 12,261 ₱ 1,348
Note 6.1: Equipment

Particulars Qty Cost/Unit Total Useful Life Dep'n

Freezer 2 ₱ 16,975 ₱ 33,950 5 ₱ 6,790
Ice crusher shaving
2 1,500 3,000 5 600
machine
Stainless steel froze
ice cream maker mold 2 5,815 11,630 5 2,326
form mold stick
Soft serve ice cream
1 38,000 38,000 7 5,429
machine
Electric ice cream cone
2 9,051 18,102 5 3,620
machine
Roman Holiday Chefn
Sweet Spot Ice Cream 5 4,280 21,400 5 4,280
Sandwich Maker
Ice cream machine 2 24,999 49,998 5 10,000
Steamer 1 86,240 86,240 7 12,320
Blender 4 3,950 15,800 5 3,160
TOTAL COST OF EQUIPMENT ₱ 278,120 ₱ 48,525

Note 6.2: Furniture and Fixtures

Particulars Qty Cost Total Useful Life Dep'n

Biometrics 1 ₱2,686 ₱ 2,686 5 ₱ 537
POS System Cash
1 14,099 14,099 5 2,820
Register
Monoblock Chair 4 340 1,360 5 272
Plastic Table 1 1,100 1,100 5 220
Water Dispenser 1 698 698 5 140
Full AHD Hybrid Dome
1 720 720 7 103
CCTV Camer
Fire Extinguisher 1 1,100 1,100 5 220
Printer 1 4,700 4,700 5 940
Office Table 1 2,936 2,936 5 587
Computer Set 1 13,620 13,620 5 2,724
Midback Office Chair 3 1,999 5,997 5 1,199
Computer Table 1 1,897 1,897 5 379
Clock 10 100 1,000 5 200
Cabinet 1 3,999 3,999 7 571
Total Store and Office Equipment ₱ 55,912 ₱ 10,913
Note 7: Organizational Expense

Particular Cost
Barangay Clearance ₱ 300
DTI 1,015
Mayor's Permit 1,800
BIR 515
BFAD 4,000
Sanitary Permit 150
Garbage Fee 1,300
Signboard Fee 1,300
Zoning Clearance 545
Business Name 500
Fire Clearance 2,000
Treasure Affidavit 500
TOTAL COST ₱ 13,925

Note 8: 13th Month Pay

Personnel Annual Cost

General manager ₱ 21,358
Supervisor 17,320
Marketing supervisor 17,320
Cashier 8,060
Ice cream maker (A) 8,060
Ice cream maker (B) 8,060
Salesperson 10,500
TOTAL COST ₱ 90,678

Note 9: Advertising Expense

Medium Units/Frequency Cost per Unit Cost

Social Media
- - ₱ 12,000
(Facebook)
Print Ads (24"x36"
30 360.00 10,800
Tarpaulin)
TOTAL ₱ 22,800
Note 10: Taxes and Licenses

Particular 2019 2020 2021 2022 2023

Barangay Business
500 500 500 500 500
Clearance
Community Tax
1,300 1,300 1,300 1,300 1,300
Certificate
Mayor's Permit Fee - 1,000 1,000 1,000 1,000
Sanitary Permit
90 90 90 90 90
Fee
Individual MP Fee 250 250 250 250 250
Individual HC Fee 650 650 650 650 650
Fire Safety
100 100 100 100 100
Inspection Fee
Notary - Business
250 250 250 250 250
Permit Form
BIR 0605
500 500 500 500 500
Registration Fee
Total ₱ 5,659 ₱ 6,660 ₱ 6,661 ₱ 6,662 ₱ 6,663

Note 11: Inventory

Particular 2019 2020 2021 2022 2023

RM, Beg. ₱ - ₱ 163,020 ₱ 179,322 ₱ 183,952 ₱ 187,714
Add:
2,037,750 2,078,505 2,120,075 2,162,477 2,205,726
Purchases
Raw ₱ 163,020 ₱ 179,322 ₱ 183,952 ₱ 187,714 ₱ 191,475

Note 12: SSS Premiums

Employee Employer
Employee Total
Contribution Contribution

General manager ₱ 1,209 ₱ 581 ₱ 1,790

Supervisor 1,209 581 1,790
Ice cream maker (A) 599 291 890
Ice cream maker (B) 599 291 890
Monthly Total 3,616 1,744 5,360
Annual SSS Premiums attributed to DL
₱ 39,776 ₱ 19,184 ₱ 58,960
(Expense-11 months)
Annual SSS Premiums attributed to DL
₱ 3,616 ₱ 1,744 ₱ 5,360
(Payable-1 month)
Annual SSS Premiums attributed to DL ₱ 43,392 ₱ 20,928 ₱ 64,320
Marketing supervisor ₱ 1,209 ₱ 581 ₱ 1,790
Salesperson 784 382 1,165
Cashier 599 291 890
Monthly Total 2,592 1,254 3,845
Annual SSS Premiums attributed to
₱ 28,507 ₱ 13,789 ₱ 42,295
OPEX (Expense-11 months)
Annual SSS Premiums attributed to
₱ 2,592 ₱ 1,254 ₱ 3,845
OPEX (Payable-1 month)
Annual SSS Premiums attributed to
₱ 31,098 ₱ 15,042 ₱ 46,140
OPEX

TOTAL ANNUAL SSS PREMIUMS EXPENSE ₱ 28,507 ₱ 13,789 ₱ 42,295

TOTAL ANNUAL SSS PREMIUMS PAYABLE ₱ 6,208 ₱ 2,998 ₱ 9,205

Note 13: PHIC Premiums

Employee Employer
Employee Total
Contribution Contribution

General manager ₱ 138 ₱ 138 ₱ 275

Supervisor 138 138 275
Ice cream maker (A) 138 138 275
Ice cream maker (B) 138 138 275
Monthly Total 550 550 1,100
Annual PHIC Premiums attributed to DL
₱ 6,050 ₱ 6,050 ₱ 12,101
(Expense-11 months)
Annual PHIC Premiums attributed to DL
₱ 550 ₱ 550 ₱ 1,100
(Payable-1 month)
Annual PHIC Premiums attributed to DL ₱ 6,600 ₱ 6,600 ₱ 13,201

Marketing supervisor ₱ 138 ₱ 138 ₱ 275

Salesperson 138 138 275
Cashier 138 138 275
Monthly Total 413 413 825
Annual PHIC Premiums attributed to
₱ 4,538 ₱ 4,538 ₱ 9,076
OPEX (Expense-11 months)
Annual PHIC Premiums attributed to
₱ 413 ₱ 413 ₱ 825
OPEX (Payable-1 month)
Annual PHIC Premiums attributed to
₱ 4,950 ₱ 4,950 ₱ 9,901
OPEX

TOTAL ANNUAL PHIC PREMIUMS EXPENSE ₱ 4,538 ₱ 4,538 ₱ 9,076

TOTAL ANNUAL PHIC PREMIUMS PAYABLE ₱ 963 ₱ 963 ₱ 1,925
Note 14: PHIC Premiums

Employee Employer
Employee Total
Contribution Contribution

General manager ₱ 100 ₱ 100 ₱ 200

Supervisor 100 100 200
Ice cream maker (A) 100 100 200
Ice cream maker (B) 100 100 200
Monthly Total 400 400 800
Annual PHIC Premiums attributed to DL
₱ 4,400 ₱ 4,400 ₱ 8,800
(Expense-11 months)
Annual PHIC Premiums attributed to DL
₱ 400 ₱ 400 ₱ 800
(Payable-1 month)
Annual PHIC Premiums attributed to DL ₱ 4,800 ₱ 4,800 ₱ 9,600

Marketing supervisor ₱ 100 ₱ 100 ₱ 200

Salesperson 100 100 200
Cashier 100 100 200
Monthly Total 300 300 600
Annual PHIC Premiums attributed to
₱ 3,300 ₱ 3,300 ₱ 6,600
OPEX (Expense-11 months)
Annual PHIC Premiums attributed to
₱ 300 ₱ 300 ₱ 600
OPEX (Payable-1 month)
Annual PHIC Premiums attributed to
₱ 3,600 ₱ 3,600 ₱ 7,200
OPEX

TOTAL ANNUAL PHIC PREMIUMS EXPENSE ₱ 3,300 ₱ 3,300 ₱ 6,600

TOTAL ANNUAL PHIC PREMIUMS PAYABLE ₱ 700 ₱ 700 ₱ 1,400

Note 15: VAT Payable

Particular 2019 2020 2021 2022 2023

Output Vat ₱ 475,500 ₱ 485,010 ₱ 494,710 ₱ 504,604 ₱ 514,696
Less: Input Vat 246,780 251,671 256,659 261,747 266,937
VAT for the Year ₱ 228,720 ₱ 233,339 ₱ 238,051 ₱ 242,857 ₱ 247,759
VAT Payable ₱ 57,180 ₱ 58,335 ₱ 59,513 ₱ 60,714 ₱ 61,940

Note 16: Withholding Tax

Withholding Expense for a Withholding

Particular
Tax % Month Tax Payable
Rent 5% ₱ 30,000 ₱ 1,500
TOTAL ₱ 1,500
Note 17: Income Tax Payable

Particular 2019 2020 2021 2022 2023

Sales ₱ 3,962,500 ₱ 4,041,750 ₱ 4,122,585 ₱ 4,205,037 ₱ 4,289,137
Less: Cost of
2,875,999 3,066,840 3,121,458 3,165,998 3,210,570
Sales
Gross Income 1,086,501 974,910 1,001,127 1,039,039 1,078,568
Less: Operating
404,989 389,141 389,142 389,143 389,144
Expenses
Net Income Before Tax 262,544 166,801 193,018 230,929 270,457
Provision for Income ₱Tax 78,763 ₱ 50,040 ₱ 57,905 ₱ 69,279 ₱ 81,137
Income Tax Payable ₱ 19,691 ₱ 12,510 ₱ 14,476 ₱ 17,320 ₱ 20,284

Note 18: Leasehold Improvement

Particular 2019 2020 2021 2022 2023

Stall Repair ₱ 120,000 ₱ 120,000 ₱ 120,000 ₱ 120,000 ₱ 120,000
Amortization Expense- LI 12,000 12,000 12,000 12,000 12,000
Accumulated Amortization 12,000 24,000 36,000 48,000 60,000
Leasehold Improvement-net ₱ 108,000 ₱ 96,000 ₱ 84,000 ₱ 72,000 ₱ 60,000

Note 19: Salaries Expense

Regular Taxable Annual Cost

Personnel SSS PHIC HDMF Net Pay
Pay Income (2019-2023)
Marketing
17,320 581 138 100 - 16,501 198,014
supervisor
Cashier 8,060 291 138 100 - 7,532 90,381
Salesperson 10,500 382 138 100 - 9,881 118,572
TOTAL COST ₱35,880 ₱ 1,254 ₱ 413 ₱ 300 ₱ 33,914 ₱ 406,968

Note: The salaries of the other employees are accounted as direct labor.
(refer to Note 2.2)
 FINANCIAL STATEMENT (FS) RATIO ANALYSIS

FS Ratio Analysis involves the careful selection of data

from the financial statements in order to assess and evaluate the

firm’s past performance, its present condition and future

business potentials.

The primary purpose of this analysis is to evaluate and

forecast the company’s financial health. Interested parties, such

as the managers, investors, and creditors, can identify the

company’s financial strengths and weaknesses.

A. PROFITABILITY RATIOS

Profitability ratios measure the earnings of the company

in relation to some base such as assets, sales or capital.

1. Gross Profit Margin Ratio

Year 2019 2020 2021 2022 2023

Gross Profit 1,086,501 974,910 1,001,127 1,039,039 1,078,568
Net Sales 3,962,500 4,041,750 4,122,585 4,205,037 4,289,137
Gross Prof. Margin
0.27 0.24 0.24 0.25 0.25
Ratio

Analysis: The firm’s projected gross profit margin ratios

show a consistent trend from 2020-2023. The sudden decrease

from 2019-2020 is normal because of zero (0) beginning

inventory causing the cost of sales to be lower thus,

making the gross profit in the first year to be

significantly higher compared to the other gross profits

recorded in 2020-2023. The 24%-27% ratios show that the

 firm is consistent in maintaining their costs of making

their products.

2. Net Profit Margin

Year 2019 2020 2021 2022 2023

Net Income 183,781 116,761 135,113 161,650 189,320
Net Sales 3,962,500 4,041,750 4,122,585 4,205,037 4,289,137
Net Prof. Margin
0.05 0.03 0.03 0.04 0.04
Ratio

Analysis: The behavior of the net profit margin is similar

to that of the gross profit margin ratios. These ratios

show that less than twenty percent (20%) of the gross

profits are left in the company as their net income.

3. Return on Equity

Year 2019 2020 2021 2022 2023

Net Income 183,781 116,761 135,113 161,650 189,320
Ave. Total Equity 1,183,781 1,242,162 1,218,098 1,016,480 741,965
Return on Equity 0.16 0.09 0.11 0.16 0.26

Analysis: These ratio analysis will be the most important

for the partners since the company is one hundred percent

(100%) financed by them. The ratios show a healthy return

to the partners exhibited by the upward trend from 2020-

2023. The large increases from 2021-2023 is caused by the

guaranteed withdrawal of the partners. Net income is

significantly higher in 2019 because of the zero beginning

inventory causing the cost of sales to be lower which made

it higher compared to the other ratios.

B. LIQUIDITY RATIOS

These ratios provide information about the firm’s

ability to pay its current obligations and continue

operations.

Current Ratio

Year 2019 2020 2021 2022 2023

Current Assets 892,087 1,074,260 983,954 821,086 586,033
Current Liabilities 90,901 84,875 88,019 92,064 96,254
Current Ratio 9.81 12.66 11.18 8.92 6.09

Analysis: The high ratios show a good sign to the firm’s

ability to pay their current obligations using their

current assets. The steady decrease from 2021-2023 is

caused by the withdrawal of the partners in the form of

cash making the current assets to decrease.

Note: Leverage ratios were not used since the business is

projected to be only financed by equity investments from the

partners.
 PAYBACK PERIOD

ORDINARY PAYBACK PERIOD

Ordinary payback period shows the duration of time the

investors need to wait to earn back their investments without

considering other factors like inflation.

YEAR INVESTMENT Net Cash Flow BALANCE PERIOD (in years)

2019 1,000,000 729,067 270,933 1.00
2020 270,933 894,938 - 0.30

1 year, 3 months and 18 days

Not considering other factors affecting the time value of

money, Marta’s Tilapia Ice Cream Company’s shall gain its

investments back after one (1) year, three (3) months and

eighteen (18) days.