FINANCIAL ASPECT

Introduction
Financial is a business function that uses numbers and analytical
tools to help managers make better decisions. Every business
owner must learn at least basic finance principles to effectively
run his business. Through this aspect, you can illustrate the
financial ratios describing the overall liquidity, indebtedness and
profitability of the business.
FINANCIAL ASSUMPTION

The proposed business will start its operation on the

month of November, 2015.

The depreciation method will be used is straight line

method.
5 years is the estimated useful life of the leasehold

improvement.
Legal permits will be renew every 1st of January of

every year. *
Lease contract includes 2 months deposit and 1 month
advance and a rental fee of 3,000 at the end of every
month. The 1 month advance will be used in the 12th
month of the current year.

Water and light expense are 100 and 150 respectively

and will be paid on second week of the succeeding

month.

The Utilities expense such as light and water is directly

connected to the lessor.

The owner can withdraw 3,000 monthly.

The pay day for the salary of employee shall be given every
15th and 30th of the month. The former covers the period
from 26th day of the previous month up to 10th day of the
present month while the second pay day covers the 11th
day up to the 25th day of the present month

Throughput costing is used to compute the cost of

goods sold.
Percentage tax of December will be paid in succeeding

month.
Income tax will be paid quarterly.

The proponents decided that in computation of percentage

tax, which is based in gross sales, the latter is allocated
evenly for the whole year.