Financial Assumptions

Milling Revene increases by 2% for each succeeding year.

Utilities Expense increases 2% for each year.
Expense for fuel and lubricants increases 3% for each year.
The salaries of workers remains the same throughout the 5 year operation.
The following assets are to be depreciated using Straight Line Method:
Building Delivery Equipment
Milling Equipment Furniture and Fixture
Office Equipment
The following assets are to be depreciated using Output Method:
Milling Machineries:
Rice Milling Machine
Corn Milling Machine
Maize Corn Milling Machine
Supplies: 2% increase in Purchases
10% Ending Inventory
90% of available supplies will be used each year.
 Notes to Financial Statement

Notes 1:Milling Revenue 2017 2018 2019

Rice
No. of Sacks 4,072.00 4153 4,237
No. of Kilograms 203,600 207,672 211,825
Price per Kilogram 2 2 2
Total Php 407,200.00 Php 415,344.00 Php 423,650.88

Corn
No. of Sacks 18,673 19,046 19,427
No. of Kilograms 933,650 952,323 971,369
Price per Kilogram 1 1 1
Total Php 933,650.00 Php 952,323.00 Php 971,369.46

Maize Corn
No. of Sacks 11,018 11,238 11,463
No. of Kilograms 550900 561918 573156.36
Price per Kilogram 1.5 1.5 1.5
Total 826,350.00 842,877.00 859,734.54
Total Milling Revenue 2,167,200.00 2,210,544.00 2,254,754.88

Note 2: Salaries and Net Pay

Monthly Salary
Machine Operator 5,200.00 5,200.00 5,200.00
Bookkeeper 4,800.00 4,800.00 4,800.00
Cashier 4,800.00 4,800.00 4,800.00
Laborer*2 (5,000) 10,000.00 10,000.00 10,000.00
Driver 5,600.00 5,600.00 5,600.00
Total Monthly 30,400.00 30,400.00 30,400.00
Total Annually 364,800.00 364,800.00 364,800.00

Gross Pay ( Monthly) SSS Contribution Phil Health

Machine Operator 5,200 181.7 100
Bookkeeper 4,800 181.7 100
Cashier 4,800 181.7 100
Laborer*2 (5,000) 10,000 363.4 200
Driver 5,600 199.8 100
Total Net Pay 1108.3 600
Total Annually 13,299.60 7,200.00

Note 3: Office Supplies Expense Quantity Unit Unit Cost

Receipt 20 pad 125
Record Book 1 pc 95
Ball Pen 50% box 50
Stapler 1 pc 90
Stapler Wire 4 box 17
Bond Paper 1 rim 148
Paper 3 pad 14
Paper Clips 1 box 15
Envelopes 5 pcs 5
Pentel Pen 2 pcs 35
Ink 1 box 70
Total
Beg. Supplies 0 314.80 352.58
Purchases 3,148.00 3,210.96 3,275.18
Available for use 3,148.00 3,525.76 3,627.76
Ending Inventory 314.80 352.58 362.78
Supplies used 2,833.20 3,173.18 3,264.98

Note 4: Cleaning Supplies Expense Quantity Unit Cost Total Cost

Broom 4 10 40
Dust Pan 2 35 70
Trash Can 2 115 230
Mop 1 155 155
Rag 5 89 445
Total 940

Beg. Balance 0 94.00 105.28

Purchases 940.00 958.80 977.98
Available for use 940.00 1,052.80 1,083.26
Ending Inv. 94.00 105.28 108.33
Supplies Used 846.00 947.52 974.93

Note 5: Permit and Licenses Cost

Barangay Permit 50
Barangay Business Permit 50
Barangay Clearance 50
Sanitation Permit 50
Electrical Permit 50
Building Permit 50
Mayor's Business Permit 3,000
BIR 500
DTI 500
Business Plate No. 250
Total 4550

Note 6: Advertising Expense 2017 2018 2019

Monthly
Flyers 300 300 300
Posters 500 500 500
Radio Advertisements 500 500 500
Total 1300 1300 1300
Total Annually 15600 15600 15600

Note 7:Utilities Expense

Monthly 2017 2018 2019
Electricity ( inscreased by 2% annually) 21,367.00 21,794.34 22,230.23
Water ( increased by 2 % annually) 2,984.00 3,043.68 3,104.55
Total 24,351 24,838.02 25,334.78
Total Annually 292,212.00 298,056.24 304,017.36

Note 8: Fuel and Lubricants

Monthly
Gasoline ( increased by 3 % annually) 12,743.00 13,125.29 13,519.05
Total Annually 152,916.00 157,503.48 162,228.58

Note 9: SSS Premium 2017 2018 2019

Machine Operator 378.3 378.3 378.3
Bookkeeper 378.3 378.3 378.3
Cashier 378.3 378.3 378.3
Laborer 756.6 756.6 756.6
Driver 415.2 415.2 415.2
Total Monthly 2306.7 2306.7 2306.7
Total Annually 27680.4 27680.4 27680.4

Note 10: Phil Health Contribution

Machine Operator 100 100 100
Bookkeeper 100 100 100
Cashier 100 100 100
Laborer 200 200 200
Driver 100 100 100
Total Monthly 600 600 600
Total Annually 7200 7200 7200

Note 11: Depreciation Expense Cost of Assets Useful Life Depreciation

Straight Line Method
Building 1,358,557.00 20 67,927.85
Milling Equipment 182,000.00 10 18,200.00
Office Equipment 69,300.00 7 9,900.00
Delivery Equipment 530,000.00 15 35,333.33
Furniture and Fixtures 14,000.00 8 1,750.00
Total 2,153,857.00 133,111.18
Total Depreciation Expense (Straight Line Method) 133,111.18 133,111.18 133,111.18
Output Method
Milling Machinery Cost of Asset Total Output (kg.) Depreciation Rate
Rice Milling Machine 92,000 15,000,000 0.0061333333
Corn Milling Machine 550,000 70,000,000 0.0078571429
Maize Corn Machine 500,000 65,000,000 0.0076923077
Rice Milling Machine 2017 2018 2019
Kilograms Milled 203,600 207,672 211,825
Rate per Kilogram 0.0061333333 0.0061333333 0.0061333333
Depreciation Expense 1,248.75 1,273.72 1,299.20
Corn Milling Machine
Kilograms Milled 933,650 952,323 971,369
Rate per Kilogram 0.0078571429 0.0078571429 0.0078571429
Depreciation Expense 7,335.82 7,482.54 7,632.19
Maize Corn Milling Machine
Kilograms Milled 550,900 561,918 573,156
Rate per Kilogram 0.0076923077 0.0076923077 0.0076923077
Depreciation Expense 4237.6923076923 4322.4461538462 4408.8950769231
Total Depreciation Expense (Output Method) 12822.2604029304 13078.705610989 13340.2797232088
Total Depreciation Expense 145,933.44 146,189.89 146,451.46

Note 12: Land 2017 2018 2019

Land 105,000.00 105,000.00 105,000.00

2017 2018 2019

Note 13: Building
Building 1,358,557.00 1,358,557.00 1,358,557.00
Less: Accumulated Depreciation 67,927.85 135,855.70 203,783.55
Carrying Amount 1,290,629.15 1,222,701.30 1,154,773.45

Note 14: Milling Machinery

Rice Mill Machine 92,000.00 92,000.00 92,000.00
Less: Accumulated Depreciation 1,248.75 2,522.47 3,821.66
Carrying Amount 90,751.25 89,477.53 88,178.34

Corn Mill Machine 550,000.00 550,000.00 550,000.00

Less: Accumulated Depreciation 7,335.82 14,818.36 22,450.55
Carrying Amount 542,664.18 535,181.64 527,549.45

Maize Corn Mill Machine 500,000.00 500,000.00 500,000.00

Less: Accumulated Depreciation 4,237.69 8,560.14 12,969.03
Carrying Amount 495,762.31 491,439.86 487,030.97

Milling Machinery 1,142,000.00 1,142,000.00 1,142,000.00

Less: Accumulated Depreciation 12,822.26 25,900.97 39,241.25
Carrying Amount 1,129,177.74 1,116,099.03 1,102,758.75

Note 15: Milling Equipment

Milling Equipment 182,000.00 182,000.00 182,000.00
Less: Accumulated Depreciation 18,200.00 36,400.00 54,600.00
Carrying Amount 163,800.00 145,600.00 127,400.00

Note 16: Office Equipment

Office Equipment 69,300.00 69,300.00 69,300.00
Less: Accumulated Depreciation 9,900.00 19,800.00 29,700.00
Carrying Amount 59,400.00 49,500.00 39,600.00

Note 17: Delivery Equipment

Delivery Equipment 530,000.00 530,000.00 530,000.00
Less: Accumulated Depreciation 35,333.33 70,666.67 106,000.00
Carrying Amount 494,666.67 459,333.33 424,000.00

Note 18: Furniture and Fixtures

Furniture and Fixtures 14,000.00 14,000.00 14,000.00
Less: Accumulated Depreciation 1,750.00 3,500.00 5,250.00
Carrying Amount 12,250.00 10,500.00 8,750.00

Note 19: SSS Payable

Share of Employer 27,680.40 27,680.40 27,680.40
Share of Employee
Machine Operator 181.70 181.70 181.70
Laborers (2) 363.40 363.40 363.40
Driver 199.80 199.80 199.80
Bookkeeper 181.70 181.70 181.70
Cashier 181.70 181.70 181.70
Total Share of Employee 1,108.30 1,108.30 1,108.30
Annual Share of Employee 13,299.60 13,299.60 13,299.60
Total (ER &EE) 40,980.00 40,980.00 40,980.00

Beginning SSS Payable 0 3,415.00 3,415.00

Total Annual Contribution (ER&EE) 40,980.00 40,980.00 40,980.00
Amount to be Remitted 40,980.00 44,395.00 44,395.00
Remittance ( 11 mos. for year 2017
and 12 mos. for years 2018-2021 37,565.00 40,980.00 40,980.00
Ending SSS Payable 3,415.00 3,415.00 3,415.00

Note 20: Phil Health Contribution

Share of Employer 7,200.00 7,200.00 7,200.00
Share of Employee
Machine Operator 100.00 100.00 100.00
Laborers(2) 200.00 200.00 200.00
Driver 100.00 100.00 100.00
Bookkeeper 100.00 100.00 100.00
Cashier 100.00 100.00 100.00
Total Share of Employee 600.00 600.00 600.00
Annual Share of Employee 7,200.00 7,200.00 7,200.00
Total (ER&EE) 14,400.00 14,400.00 14,400.00

Beg. Phil Health Contribution (ER&EE) 0 1,200.00 1,200.00

Total Annual Contribution (ER&EE) 14,400.00 14,400.00 14,400.00
Amount to be remitted 14,400.00 15,600.00 15,600.00
Remittance (11 mos. for year 2017
and 12 mos. for years 2018-2021 13,200.00 14,400.00 14,400.00
Ending Phil Health Contibution Payable 1,200.00 1,200.00 1,200.00
 2020 2021

4,321 4,408
216,062 220,383
2 2
Php 432,123.90 Php 440,766.38

19,816 20,212
990,797 1,010,612.79
1 1
Php 990,796.85 Php 1,010,612.79

11,692 11,926
584619.4872 596311.876944
1.5 1.5
876,929.23 894,467.82
2,299,849.98 2,345,846.98

5,200.00 5,200.00
4,800.00 4,800.00
4,800.00 4,800.00
10,000.00 10,000.00
5,600.00 5,600.00
30,400.00 30,400.00
364,800.00 364,800.00

Total Deduction Net Pay

281.70 4,918.30
281.70 4,518.30
281.70 4,518.30
563.40 9,436.60
299.80 5,300.20
1,708.30 28,691.70
20,499.60 344,300.40

Total Cost
2500
95
25
90
68
148
42
15
25
70
70
3148
 362.78 370.35
3,340.68 3,407.50
3,703.46 3,777.84
370.35 377.78
3,333.11 3,400.06

108.33 110.59
997.54 1,017.49
1,105.86 1,128.07
110.59 112.81
995.28 1,015.27

2020 2021

300 300
500 500
500 500
1300 1300
15600 15600

2020 2021
22,674.83 23,128.33
3,166.64 1.02
25,841.48 23,129.35
310,097.71 277,552.18

13,924.62 14,342.36
167,095.44 172,108.31

2020 2021
 378.3 378.3
378.3 378.3 40980
378.3 378.3
756.6 756.6
415.2 415.2
2306.7 2306.7
27680.4 27680.4

100 100
100 100
100 100
200 200
100 100
600 600
7200 7200

133,111.18 133,111.18

2020 2021
216,062 220,383
0.0061333333 0.0061333333
1,325.18 1,351.68

990,797 1,010,613
0.0078571429 0.0078571429
7,784.83 7,940.53

584,619 596,312
0.0076923077 0.0076923077
4497.0729784615 4587.0144380308
13607.085317673 13879.2270240264
146,718.27 146,990.41

2020 2021
105,000.00 105,000.00

2020 2021

1,358,557.00 1,358,557.00
271,711.40 339,639.25
1,086,845.60 1,018,917.75
 92,000.00 92,000.00
5,146.84 6,498.53
86,853.16 85,501.47

550,000.00 550,000.00
30,235.38 38,175.91
519,764.62 511,824.09

500,000.00 500,000.00
17,466.11 22,053.12
482,533.89 477,946.88

1,142,000.00 1,142,000.00
52,848.33 66,727.56
1,089,151.67 1,075,272.44

182,000.00 182,000.00
72,800.00 91,000.00
109,200.00 91,000.00

69,300.00 69,300.00
39,600.00 49,500.00
29,700.00 19,800.00

530,000.00 530,000.00
141,333.33 176,666.67
388,666.67 353,333.33

14,000.00 14,000.00
7,000.00 8,750.00
7,000.00 5,250.00

27,680.40 27,680.40

181.70 181.70
363.40 363.40
199.80 199.80
181.70 181.70
181.70 181.70
1,108.30 1,108.30
13,299.60 13,299.60
40,980.00 40,980.00

3,415.00 3,415.00
40,980.00 40,980.00
44,395.00 44,395.00

40,980.00 40,980.00
3,415.00 3,415.00
 7,200.00 7,200.00

100.00 100.00
200.00 200.00
100.00 100.00
100.00 100.00
100.00 100.00
600.00 600.00
7,200.00 7,200.00
14,400.00 14,400.00

1,200.00 1,200.00
14,400.00 14,400.00
15,600.00 15,600.00

14,400.00 14,400.00
1,200.00 1,200.00
 Elmery Rice and Corn Mill
Projected Income Statement
For the year ended 2017-2021

Notes 2017 2018 2019

Milling Revenue 1 2,167,200 2,210,544 2,254,755
Less:Operating Expenses
Salaries and Wages 2 364,800.00 364,800.00 364,800.00
Office Supplies Expense 3 2,833.20 3,173.18 3,264.98
Cleaning Supplies Expense 4 846.00 947.52 974.93
Permit and Licenses 5 4,550.00 4,550.00 4,550.00
Advertising Expense 6 15,600.00 15,600.00 15,600.00
Utilities Expense 7 292,212.00 298,056.24 304,017.36
Fuel and Lubricants Expense 8 152,916.00 157,503.48 162,228.58
SSS Contributions 9 27,680.40 27,680.40 27,680.40
Phil Health Contribution 10 7,200.00 7,200.00 7,200.00
Depreciation Expense 11 145,933.44 146,189.89 146,451.46
Total Operating Expenses 1,014,571.04 1,025,700.71 1,036,768
Net Income 1,152,628.956 1,184,843.287 1,217,987.158
 2020 2021
2,299,850 2,345,847

364,800.00 364,800.00
3,333.11 3,400.06
995.28 1,015.27
4,550.00 4,550.00
15,600.00 15,600.00
310,097.71 277,552.18
167,095.44 172,108.31
27,680.40 27,680.40
7,200.00 7,200.00
146,718.27 146,990.41
1,048,070 1,020,897
1,251,779.767 1,324,950.363
 Elmery Rice and Corn Mill
Projected Statement of Cash Flow

2017 2018 2019

Cash Flow from Operating Activities
Proceeds from Revenue 2,167,200.00 2,210,544.00 2,254,754.88
Payment of Salaries - 344,300.40 - 344,300.40 - 344,300.40
Purchase of Cleaning Supplies - 940.00 - 958.80 - 977.98
Purchase of Office Supplies - 3,148.00 - 3,210.96 - 3,275.18
Payment of Permits and Licenses - 4,550.00 - 4,550.00 - 4,550.00
Payment of Advertising Expense - 15,600.00 - 15,600.00 - 15,600.00
Payment of Utilities Expenses - 292,212.00 - 298,056.24 - 304,017.36
Payment for Fuel And Lubricants - 152,916.00 - 157,503.48 - 162,228.58
Remittance of SSS - 37,565.00 - 40,980.00 - 40,980.00
Remittance of Phil Health - 13,200.00 - 14,400.00 - 14,400.00
Net Cash provided by Operating Activities 1,302,768.60 1,330,984.12 1,364,425.38
Cash Flow From Investing Activities
Purchase of Land - 105,000.00
Construction of Building - 1,358,557.00
Purchase of Milling Machinery - 1,142,000.00
Purchase of Milling Equipment - 182,000.00
Purchase of Office Equipment - 69,300.00
Purchase of Delivery Equipment - 530,000.00
Purchase of Furniture and Fixtures - 14,000.00
Net Cash provided by Investing Activities - 3,400,857.00
Cash Flow From Financing Activities
Investment by Owner 4,000,000.00
less: withdrawals -
Net Cash provided by Financing Activities 4,000,000.00
Net Increase in Cash 599,143.00 1,302,768.60 1,330,984.12 1,364,425.38
Add: Cash Balance, Beginning 0 599,143.00 1,901,911.60 3,232,895.72
Cash Balance, Ending 599,143.00 1,901,911.60 3,232,895.72 4,597,321.10
 2020 2021

2,299,849.98 2,345,846.98
- 344,300.40 - 344,300.40
- 997.54 - 1,017.49
- 3,340.68 - 3,407.50
- 4,550.00 - 4,550.00
- 15,600.00 - 15,600.00
- 310,097.71 - 277,552.18
- 167,095.44 - 172,108.31
- 40,980.00 - 40,980.00
- 14,400.00 - 14,400.00
1,398,488.21 1,471,931.11

1,398,488.21 1,471,931.11
4,597,321.10 5,995,809.30
5,995,809.30 7,467,740.41
 Elmery Rice and Corn Mill
Projected Change's in Owner's Equity

2017 2018 2019 2020

Elmery ,Capital Beginning 4,000,000.00 5,152,628.96 6,337,472.24 7,555,459.40
Add:Net Income 1,152,628.96 1,184,843.29 1,217,987.16 1,251,779.77
Total 5,152,628.96 6,337,472.24 7555459.40098287 8,807,239.17
Less: Withdrawals 0 0 0 0
Elmery ,Capital Ending Php 5,152,628.96 Php 6,337,472.24 Php 7,555,459.40 Php 8,807,239.17
 2021
8,807,239.17
1,324,950.36
10,132,189.53
0
Php 10,132,189.53
 Elmery Rice and Corn Mill
Projected Statement of Financial Position
As of the year ended 2017-2021
ASSETS Notes 2017 2018 2019 2020
Current Asset:
Cash 1,901,911.60 3,232,895.72 4,597,321.10 5,995,809.30
Cleaning Supplies 4 94 105.28 108.33 110.59
Office supplies 3 314.8 352.58 362.78 370.35
Total Current Asset Php 1,902,320.40 Php 3,233,353.58 Php 4,597,792.20 Php 5,996,290.23

Non- Current Assets:

Land 12 105,000.00 105,000.00 105,000.00 105,000.00
Building 13 1,290,629 1,222,701 1,154,773 1,086,846
Milling Machinery 14 1,129,177.74 1,116,099.03 1,102,758.75 1,089,151.67
Milling Equipment 15 163,800.00 145,600.00 127,400.00 109,200.00
Office Equipment 16 59,400.00 49,500.00 39,600.00 29,700.00
Delivery Equipment 17 494,666.67 459,333.33 424,000.00 388,666.67
Furniture and Fixtures 18 12,250.00 10,500.00 8,750.00 7,000.00
Total Non-Current Assets 3,254,923.56 3,108,733.67 2,962,282.20 2,815,563.94
Total Assets 5,157,243.96 6,342,087.24 7,560,074.40 8,811,854.17

LIABILITIES AND OWNER'S EQUITY

Current Liabilities:
SSS Payable 19 3,415.00 3,415.00 3,415.00 3,415.00
Phil Health Payable 20 1,200.00 1,200.00 1,200.00 1,200.00
Total Current Liabilities 4,615.00 4,615.00 4,615.00 4,615.00
Total Liabilities 4,615.00 4,615.00 4,615.00 4,615.00

Owner's Equity
Elmery, Capital 5,152,628.96 6,337,472.24 7,555,459.40 8,807,239.17
Total Owner's Equity 5,152,628.96 6,337,472.24 7,555,459.40 8,807,239.17
Total Liabilities and Owner's Equity 5,157,243.96 6,342,087.24 7,560,074.40 8,811,854.17

- - - -
 2021

7,467,740.41
112.81
377.78
Php 7,468,231.01

105,000.00
1,018,918
1,075,272.44
91,000.00
19,800.00
353,333.33
5,250.00
2,668,573.53
10,136,804.53

3,415.00
1,200.00
4,615.00
4,615.00

10,132,189.53
10,132,189.53
10,136,804.53