Project Cost

Note
Working Capital 1 ₱ 132,000.00
Prepaid Expenses 2 ₱ 10,000.00
Start Up Cost 3 ₱ 25,000.00
Advertising ₱ 3,000.00
Property, Plant, and Equipment 4 ₱ 130,000.00
Total Project Cost ₱ 300,000.00

Owner's Equity ₱ 200,000.00

Start-Up Cost ₱ 25,000.00
Advertisement ₱ 3,000.00
Net Equity ₱ 172,000.00

Source of Financing % Cost Weight

Debt 5% 0.33 ₱ 100,000.00
Equity 10.75% 0.67 ₱ 200,000.00
Total Project Cost ₱ 300,000.00
 Notes to Financial Statements

Note 1
Cash and cash equivalents Pre-operational 2018 2019

Petty Cash Fund ₱ 20,000.00 ₱ 20,000.00 ₱ 20,000.00

Contingency Fund ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00
Cash in Bank - Current Account ₱ 82,000.00 ₱ 132,143.75 ₱ 204,870.00
Total Cash ₱ 132,000.00 ₱ 182,143.75 ₱ 254,870.00

Note 2
Prepaid Expenses Schedule Pre-operational 2018 2019
1
Office Supplies ₱ 5,000.00 ₱ 5,750.00 ₱ 6,612.50
Insurance ₱ 5,000.00 ₱ 5,000.00 ₱ 5,000.00
Total Prepaid Expenses ₱ 10,000.00 ₱ 10,750.00 ₱ 11,612.50

Note 3
Organizational Cost Pre-operational 2018 2019

Opening Cost ₱ 3,000.00

Legal Fees ₱ 2,000.00
Licenses and Permits ₱ 20,000.00
Total Organizational Cost ₱ 25,000.00

Note 4
Property, Plant, and Equipment Pre-operational 2018 2019

Office Equipment ₱ 100,000.00 ₱ 80,000.00 ₱ 60,000.00

Furniture and Fixtures ₱ 30,000.00 ₱ 24,000.00 ₱ 18,000.00
Total property, Plant, and Equipment ₱ 130,000.00 ₱ 104,000.00 ₱ 78,000.00

Note 5
Service Revenue 2018 2019

Events:
Weddings ₱ 20,000.00 5 ₱100,000.00 ₱140,000.00
Debuts ₱ 15,000.00 5 ₱75,000.00 ₱105,000.00
Birthdays ₱ 10,000.00 5 ₱50,000.00 ₱70,000.00
Corporate Events ₱ 30,000.00 5 ₱150,000.00 ₱210,000.00
Total Revenue ₱ 75,000.00 ₱375,000.00 ₱525,000.00
Note 6
Operating Expenses 2018 2019
Salaries Expense ₱ 84,000.00 ₱ 84,000.00
Utilities Expense ₱ 18,750.00 ₱ 26,250.00
Repairs and Maintenance ₱ 3,500.00 ₱ 3,675.00
Advertising Expense ₱ 36,000.00 ₱ 36,000.00
Insurance Expense ₱ 5,000.00 ₱ 5,000.00
Depreciation Expense ₱ 26,000.00 ₱ 26,000.00
Supplies Expense ₱ 2,437.50 ₱ 3,412.50
Accountant-Outsourced ₱ 60,000.00 ₱ 60,000.00
Total Operating Expenses ₱ 235,687.50 ₱ 244,337.50
 Office Equipment
Laptop ₱ 40,000.00
Printer ₱ 15,000.00
Photocopier ₱ 15,000.00
Refrigerator ₱ 18,000.00
Air Conditioner ₱ 12,000.00
Total ₱ 100,000.00

Furniture and Fixtures

Tables and Chairs ₱ 20,000.00
Refurnishment ₱ 10,000.00
Total ₱ 30,000.00
 PLANNING GURUS PRODUCTION
Statement of Profit or Loss
For the year end 2019 - 2020
2019 2020
Note
Service Revenue 5 ₱ 375,000.00 ₱ 525,000.00
Cost of Sales ₱ 93,750.00 ₱ 131,250.00
Gross Profit ₱ 281,250.00 ₱ 393,750.00
Operating Expenses 6 ₱ 235,687.50 ₱ 244,337.50
Operating Income ₱ 45,562.50 ₱ 149,412.50
Interest Expense ₱ 10,000.00 ₱ 10,000.00
Income Before Tax ₱ 35,562.50 ₱ 139,412.50
Income Tax Expense ₱ 10,668.75 ₱ 41,823.75
Net Income ₱ 24,893.75 ₱ 97,588.75
₱ 339,437.50
 PLANNING GURUS PRODUCTION
Statement of Cash Flows
For year-end 2019 to 2020

Pre-operational 2019 2020

Operating Activities:
Net Income ₱ 24,893.75 ₱ 97,588.75
Adjustments to net income to cash basis:
Depreciation ₱ 26,000.00 ₱ 26,000.00
(Increase)Decrease of Prepaid Expenses -₱ 10,000.00 -₱ 750.00 -₱ 862.50
(Increase)Decrease of Organizational Costs -₱ 25,000.00
(Increase)Decrease of Advertisement -₱ 3,000.00
Net cash provided by operating activities -₱ 38,000.00 ₱ 50,143.75 ₱ 122,726.25

Investing Activities:
Acquisition of Property, Plant, and Equipment -₱ 130,000.00
Net cash used in investing activities -₱ 130,000.00

Financing Activities:
Cash Invested by the Owner ₱ 200,000.00
Increase(Decrease) in Loans Payable ₱ 100,000.00 -₱ 50,000.00
Net cash used in financing activities ₱ 300,000.00 ₱ - -₱ 50,000.00
Net increase)decrease in cash ₱ 132,000.00 ₱ 50,143.75 ₱ 72,726.25
Beginning Cash Balance ₱ - ₱ 132,000.00 ₱ 182,143.75
Ending Cash Balance ₱ 132,000.00 ₱ 182,143.75 ₱ 254,870.00
 PLANNING GURUS PRODUCTION
Statement of Financial Position
As of December 2018 to 2019

Pre-Operational 2019 2020

Assets
Current Assets
Cash and Cash Equivalent ₱ 132,000.00 ₱ 182,143.75 ₱ 254,870.00
Prepaid Expenses ₱ 10,000.00 ₱ 10,750.00 ₱ 11,612.50
Total Current Assets ₱ 142,000.00 ₱ 192,893.75 ₱ 266,482.50
Non-Current Assets
Office Equipment ₱ 100,000.00 ₱ 80,000.00 ₱ 60,000.00
Furniture and Fixtures ₱ 30,000.00 ₱ 24,000.00 ₱ 18,000.00
Total Non-Current Assets ₱ 130,000.00 ₱ 104,000.00 ₱ 78,000.00
Total Assets ₱ 272,000.00 ₱ 296,893.75 ₱ 344,482.50

Liabilities and Partner's Equity

Liabilities
Current Liabilities
Current Portion of Long-Term Debt ₱ - ₱ 50,000.00 ₱ 50,000.00
Non-Current Liabilities
Non-Current Portion of Long-Term Debt ₱ 100,000.00 ₱ 50,000.00 ₱ -
Total Liabilities ₱ 100,000.00 ₱ 100,000.00 ₱ 50,000.00
Owner's Equity ₱ 172,000.00 ₱ 196,893.75
Total Liabilities and Partner's Equity ₱ 272,000.00 ₱ 296,893.75 ₱ 294,482.50
₱ 284,446.88
₱ 320,688.13
Liabilities Pre-Operational 2019 2020
Current Liabilities
Current Portion of Long-Term Debt ₱ - ₱ 50,000.00 ₱ 50,000.00
Non-Current Liabilities
Non-Current Portion of Long-Term Debt ₱ 100,000.00 ₱ 50,000.00 ₱ -
Total Liabilities ₱ 100,000.00 ₱ 100,000.00 ₱ 50,000.00
Current Ratio
Current Assets Current Liabilities
2019 ₱ 192,893.75 ₱ 50,000.00 3.86
2020 ₱ 266,482.50 ₱ 50,000.00 5.33

Quick Ratio
Current Assets Current Liabilities
2019 ₱ 182,143.75 ₱ 50,000.00 3.64
2020 ₱ 254,870.00 ₱ 50,000.00 5.10

Working Capital Turnover

Net Sales Ave. Net Working Capital
2019 ₱ 375,000.00 ₱ 157,071.88 2.39
2020 ₱ 525,000.00 ₱ 218,506.88 2.40

Assets Turnover
Net Sales Ave. Total Assets
2019 ₱ 375,000.00 ₱ 284,446.88 1.32
2020 ₱ 525,000.00 ₱ 320,688.13 1.64
Debt-to-assets Ratio
Total Debt Total Assets
2019 ₱ 100,000.00 ₱ 296,893.75 0.34
2020 ₱ 50,000.00 ₱ 344,482.50 0.15

Times interest earned

EBIT Interest Expense
2019 ₱ 45,562.50 ₱ 10,000.00 4.56
2020 ₱ 149,412.50 ₱ 10,000.00 14.94

Total Assets-to-Total Liabilities

Total Assets Total Liabilities
2019 ₱ 296,893.75 ₱ 100,000.00 2.97
2020 ₱ 344,482.50 ₱ 50,000.00 6.89
Return on Sales
Net Income Net Sales
2019 ₱ 24,893.75 ₱ 375,000.00 0.07
2020 ₱ 97,588.75 ₱ 525,000.00 0.19

Gross Profit Rate

Gross Profit Net Sales
2019 ₱ 281,250.00 ₱ 375,000.00 0.75
2020 ₱ 393,750.00 ₱ 525,000.00 0.75

Operating Leverage
Contribution Margin Net income
2019 ₱ 260,062.50 ₱ 24,893.75 10.45
2020 ₱ 364,087.50 ₱ 97,588.75 3.73
 2019 Ratio 2020 Ratio
Sales ₱ 375,000.00 100% ₱ 525,000.00 100%
Variable Cost ₱ 114,937.50 30.65% ₱ 160,912.50 30.65%
Contribution Margin ₱ 260,062.50 69.35% ₱ 364,087.50 69.35%
Fixed Cost ₱ 224,500.00 ₱ 224,675.00
Income Before Tax ₱ 35,562.50 ₱ 139,412.50

2019 2020
Break-even Point(pesos) ₱ 323,720.26 ₱ 323,972.60

Actual Sales ₱ 375,000.00 ₱ 525,000.00

Break-even Point(pesos) ₱ 323,720.26 ₱ 323,972.60
Margin of Safety ₱ 51,279.74 ₱ 201,027.40
 2019 2020
Sales ₱ 375,000.00 ₱ 525,000.00

Variable Cost
Cost of Sales ₱ 93,750.00 ₱ 131,250.00
Supplies Expense ₱ 2,437.50 ₱ 3,412.50
Utilities Expense ₱ 18,750.00 ₱ 26,250.00
Total ₱ 114,937.50 ₱ 160,912.50

Fixed Cost 2019 2020

Interest Expense ₱ 10,000.00 ₱ 10,000.00
Repairs and Maintenance ₱ 3,500.00 ₱ 3,675.00
Salaries Expense ₱ 144,000.00 ₱ 144,000.00
Insurance Expense ₱ 5,000.00 ₱ 5,000.00
Depreciation Expense ₱ 26,000.00 ₱ 26,000.00
Advertising Expense ₱ 36,000.00 ₱ 36,000.00
Total ₱ 224,500.00 ₱ 224,675.00
 Operating Income Ave. Total Assets
2019 ₱ 45,562.50 ₱ 284,447 0.16
2020 ₱ 149,412.50 ₱ 320,688 0.47