Financial S'Russel

Schedule 2: Utensils And Equipment
Item Qty Unit Cost (Php) Amount (Php)

Portion Spoon 2 29.00 58.00
Scoop 3 70.00 210.00
Pot 30cm 4 980.00 3,920.00
Utility Knife 2 70.00 140.00
Straight Tong 4 50.00 200.00
Colander 2 216.00 432.00
Mixing Bowl 5 236.00 1,180.00
Masher 2 100.00 200.00
Kitchen Trash Bin Big 2 682.00 1,384.00
Trash Bin 3 240.00 240.00
Wooden Spatula 2 90.00 180.00
Basin 2 80.00 160.00
Double Burner with Gas Tank 2 2,450.00 4,900.00
Storage Box 2 650.00 1,300.00
Food Keeper 15 98.00 1,470.00
Hand Towel 15 15.00 225.00
Chest Freezer 4 12,450.00 49,800.00
Deep Fryer 4 1,505.00 6,020.00
Digital Scale 1 954.00 954.00
Table 1 1,200.00 1,200.00
Plastic Squeeze Sauce Bottle 8 30.00 240.00
Mono-block Chairs 3 430.00 1,290.00
TOTAL 75,703.00
Schedule 3: Office Supplies
Item Unit Price/Unit Cost

Record Book 4 60 240.00
Bond Paper 2 rim 187 374.00
Stapler 2 75 150.00
Staple wire 6 box 30 180.00
Ball pen 1 box. 58 58.00
Calculator 4 130 520.00
Marker 3 38 114.00
Payment Receipt 10 pads 115 1150.00
Refill Ink 6 bottle 115 690.00
First Aid Kit 1 524.75 524.75
TOTAL 4,000.75
Schedule 4: Furniture and Fixture

Item Qty Unit Cost (Php) Amount (Php)
Office Table 8 4,500.00 18,000.00
Swivel Chair 8 1,594.50 12,756.00
Mono-block Chairs 9 430.00 3,870.00
Steel Cabinet 1 9,645.50 9,645.50
Computer set 8 11,255.00 90,040.00
Ceiling Fan 2 2,309.00 4,618.00
First Aid Cabinet 1 885.00 885.00
Fire Extinguisher 1 1,100.00 1,100.00
Trash Bin 8 80.00 640.00
Total 141,554.50
Schedule 5. Depreciation Schedule
Annual
Estimated Useful
Depreciable Assets No. Cost (PhP) Scrap Value Depreciation
Life
(PHP)
Building 537,309.60 10% 20 32,238.58
Stand/ Cart 3 133,263.00 5% 10 12,659.99
Delivery Equipment 155,000.00 5% 15 9,816.67
Kitchen Equipment’s and
Utensils
Portion Spoon 2 58.00 1 58.00
Scoop 3 210.00 1 210.00
Pot 30cm 4 3,920.00 5 784.00
Utility Knife 2 140.00 1 140.00
Straight Tong 4 200.00 2 100.00
Colander 2 432.00 3 144.00
Mixing Bowl 5 1,180.00 3 393.33
Masher 2 200.00 2 100.00
Trash Bin Big 2 1,364.00 5 272.80
Trash Bin 3 240.00 2 120.00
Wooden Spatula 2 180.00 1 180.00
Basin 2 160.00 1 160.00
Double Burner with Gas Tank 2 4,900.00 5 980.00
Storage Box 2 1,300.00 5 260.00
Food Keeper 15 1,470.00 5 294.00
Hand Towel 15 225.00 1 225.00
Chest Freezer 4 49,800.00 3% 10 4,830.60
Deep Fryer 4 6,020.00 3% 8 729.93
Digital Scale 1 954.00 3% 10 92.54
Table 1 1,200.00 10 120.00
Plastic Squeeze Sauce Bottle 8 240.00 1 240.00
Mono-block Chairs 3 1,290.00 5 258.00
Furniture and Fixture
Office Table 8 36,000.00 3% 20 1,746.00
Swivel Chair 8 12,756.00 5 2,551.20
Mono-block Chairs 9 3,870.00 5 774.00
Steel Cabinet 1 9,645.50 10 964.55
Computer set 8 90,040.00 3% 5 17,477.76
Ceiling Fan 2 4,618.00 2 2,309.00
First Aid Cabinet 1 885.00 5 177.00
Fire Extinguisher 1 1,100.00 5 220.00
Trash Bin 8 640.00 2 320.00
Calculator 4 520.00 3 173.33
Stapler 2 150.00 2 75.00
ToTal 92,195.28
Administrative
36,604.51
Depreciation
Overhead
55,590.77
Depreciation
2019 92,195.28
2020 184,390.56
2021 276,585.84
2022 368,781.12
2023 460,976.40
Schedule 6: Projected Manpower Salary and
Benefits
Personnel 2019 2020 2021 2022 2023

Manager 224,370.00 235,588.50 247,367.93 259,736.32 272,723.14
Marketing Head 194,351.60 204,069.18 214,272.64 224,986.27 236,235.58
Finance Head 194,351.60 204,069.18 214,272.64 224,986.27 236,235.58
Admin Head 194,351.60 204,069.18 214,272.64 224,986.27 236,235.58
Production Head 194,351.60 204,069.18 214,272.64 224,986.27 236,235.58
Advertising staff 168,010.56 176,411.09 185,231.64 194,493.22 204,217.89
Cashier 136,453.48 143,276.15 150,439.96 157,961.96 165,860.06
Clerk 136,453.48 143,276.15 150,439.96 157,961.96 165,860.06
Bookkeeper 5000.00 5,250.00 5,512.50 5,788.13 6,077.53
Purchasing Officer 149,612.00 157,092.60 164,947.23 173,194.59 181,854.32
Quality Controller 149,612.00 157,092.60 164,947.23 173,194.59 181,854.32
Head Cook 136,453.48 143,276.15 150,439.96 157,961.96 165,860.06
Cook 589,677.40 619,161.27 650,119.33 682,625.30 716,756.57
Service Crew 943,483.84 990,658.03 1,040,190.93 1,092,200.48 1,146,810.50
Driver 117,935.48 123,832.25 130,023.87 136,525.06 143,351.31
TOTAL 3,534,468.12 3,711,191.53 3,896,751.10 4,091,588.66 4,296,168.09
Schedule 7. Projected Cost of Good
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Direct Materials 3,462,192.00 4,725,892.80 6,107,306.40 7,615,047.60 9,258,295.40
Direct Labor 1,669,614.72 1,753,095.45 1,840,750.22 1,932,787.74 2,029,427.13
Overhead Cost
1,069,231.84 1,330,102.03 1,614,386.16 1,923,773.45 2,260,060.50
(Sched 8)
Total 6,201,038.56 7,809,090.28 9,562,442.78 11,471,608.79 13,547,783.03
Schedule 8. Projected Cost of Production Overhead

Indirect Materials 658,440.00 898,770.60 1,161,488.16 1,448,230.55 1,760,743.46
Indirect Labor 343,963.60 361,161.78 379,219.87 398,180.86 418,089.90
Utility 66,828.24 70,169.65 73,678.13 77,362.04 81,227.14
Depreciation 55,590.77 55,590.77 55,590.77 55,590.77 55,590.77
Total 1,069,231.84 1,330,102.03 1,614,386.16 1,923,773.45 2,260,060.50
Schedule 9. General Administrative Cost and Other Expenses
Salaries and Wages
1,522,908.80 1,598,954.29 1,678,802.00 1,762,642.05 1,850,674.06
(Schedule 12)
Utilities Expense 62,652.00 65,784.60 69,073.83 72,527.52 76,153.90
Office Supplies
Expense 4,000.75 4,800.90 5,761.08 6,913.30 8,295.96
(Sched 11)
Rent Expense 984,000.00 984,000.00 984,000.00 984,000.00 984,000.00
Depreciation Expense 36,604.51 36,604.51 36,604.51 36,604.51 36,604.51
Amortization
14,000.00 14,000.00 14,000.00 14,000.00 14,000.00
(Sched 12)
Permits & Licenses
40,019.62 32,796.50 40,192.55 48,157.09 56,658.59
Expense
Repair and
23,070.30 23,070.30 23,070.30 23,070.30 23,070.30
Maintenance Expense
Insurance Expense 50,856.90 50,856.90 50,856.90 50,856.90 50,856.90
Promotional/Marketing
2,700.00 660.00 726.00 798.60 878.46
Expenses
Vehicle Registration 2,500.00
Total 2,743,312.88 2,811,528.00 2,903,087.17 2,999,570.27 3,101,192.68
Schedule 10. Potato Kroketten Cost Supply by year
Schedule of Potato Schedule of Potato Schedule of Potato Schedule of Potato Schedule of Potato
Kroketten Year 1 Kroketten Year 2 Kroketten Year 2021 Kroketten Year 1 Kroketten Year 1
Daily 9,617.20 Daily 13,127.48 Daily 16,964.74 Daily 21,152.91 Daily 25,717.49
Monthly 288.516.00 Monthly 393,824.40 Monthly 508,942.20 Monthly 634,587.30 Monthly 771,524.70
One One One One One
3,462,192.00 4,725,892.80 6,107,306.40 7,615,047.60 9,258,295.40
Year Year Year Year Year
Total Cost: ₱31,168,735.20
Schedule 11. Projected Sales Income

Produced Potato
558,000 725,400 892,800 1,060,200 1,227,600
Kroketten in units
Price 20 21 22 23 24
Total Sales 11,160,000.00 15,233,400.00 19,641,600.00 24,384,600.00 29,462,400.00
Schedule 12. Amortization

Items Amount Useful Life Amortization
Feasibility Study 50,000.00 5 years 10,000.00
Contingency Fund 20,000.00 5 years 4,000.00
Total 14,000.00
Exhibit 1. Income Statement (Case-0)
Potato Kroketten
Statement of Financial Performance
For the Years ended year 1, year 2, year 3, year 4, and year 5
Year 1 Year 2 Year 3 Year 4 Year 5

Sales ₱ 11,160,000.00 15,233,400.00 19,641,600.00 24,384,600.00 29,462,400.00
Less: Cost of Goods
Manufactured (Sched 7) 6,201,038.56 7,809,090.28 9,562,442.78 11,471,608.79 13,547,783.03
Gross of Profit 4,958,961.44 7,424,309.72 10,079,157.22 12,912,991.21 15,914,616.97
Less: Gen. Administrative
2,743,312.88 2,811,528.00 2,903,087.17 2,999,570.27 3,101,192.68
Cost
Net Income before Tax 2,215,648.56 4,612,781.72 7,176,070.05 9,913,420.94 12,813,424.29
Less: Income Tax 664,694.57 1,383,834.52 2,152,821.02 2,974,026.28 3,844,027.29
Net Income ₱ 1,550,953.99 3,228,947.20 5,023,249.03 6,939,394.66 8,969,397.00
Schedule 15. Income Tax Computation (Case-0)

Net Income by Tax 2,215,648.56 4,612,781.72 7,176,070.05 9,913,420.94 12,813,424.29
Tax rate 30% 30% 30% 30% 30%
Income Tax 664,694.57 1,383,834.52 2,152,821.02 2,974,026.28
Exhibit 2. Cash Flow (Case-0)
Potato Kroketten
Statement of Cash Flows
For the years ended year 1, year 2, year 3, year 4, year 5

Cash Flow from Operating
Activities
Net Income/(Loss) 1,550,953.99 3,228,947.20 5,023,249.03 6,939,394.66 8,969,397.00
Noncash adjustments to
reconcile Net Income/
(Loss) to Net Cash Flows
Add: Depreciation 92,195.28 92,195.28 92,195.28 92,195.28 92,195.28
Net Cash Flow provided
1,643,149.27 3,321,142.48 5,115,444.31 7,031,589.94 9,061,592.28
from Operating Activities
Cash Flow from Investing
Activities
Purchase of Land (652,400.00)
Construction of Building (537,309.60)
Construction of Stand/Cart (133,263.00)
Purchase of Kitchen
Equipment and Utensils (75,703.00)
Purchase of Furniture and
Fixtures (141,554.50)
Purchase of Delivery
Equipment (155,000.00)
Net Cash Flow (used) in
(1,695,230.10)
Investing Activities
Cash Flow from Financing
Activities
Cash Investment 5,600,000.00
5,600,000.00
from Financing Activities
Net Increase/(Decrease) in
Cash 5,547,919.17 3,321,142.48 5,115,444.31 7,031,589.94 9,061,592.28
Cash, Beginning 5,547,919.17 8,869,061.65 13,984,505.96 21,016,095.90
Cash, Ending 5,547,919.17 8,869,061.65 13,984,505.96 21,016,095.90 30,077,688.18
Exhibit 3. Balance Sheet (Case-0)
Potato Kroketten
Statement of Financial Position
For the years en22ded year 1, year 2, year 3, year 4, year 5
Assets
Current Assets
Cash ₱ 5,547,919.17 8,869,061.65 13,984,505.96 21,016,095.90 30,077,688.18
Total Current Assets 5,547,919.17 8,869,061.65 13,984,505.96 21,016,095.90 30,077,688.18
Noncurrent Assets
Land 652,400.00 652,400.00 652,400.00 652,400.00 652,400.00
Building 537,309.60 537,309.60 537,309.60 537,309.60 537,309.60
Stand/Cart 133,263.00 133,263.00 133,263.00 133,263.00 133,263.00
Kitchen Equipment and
Utensils 75,703.00 75,703.00 75,703.00 75,703.00 75,703.00
Furniture and Fixtures 141,554.50 141,554.50 141,554.50 141,554.50 141,554.50
Deliver Equipment 155,000.00 155,000.00 155,000.00 155,000.00 155,000.00
Less: Accumulated
Depreciation 92,195.28 184,390.56 276,585.84 368,781.12 460,976.40
Total Noncurrent Assets 1,603,034.82 1,510,839.54 1,418,644.26 1,326,448.98 1,234,253.70
Total Assets ₱ 7,150,953.99 10,379,901.19 15,403,150.22 22,342,544.88 31,311,941.88
Liabilities and Equity

Liabilities:
Accounts Payable 0.00 0.00 0.00 0.00 0.00
Total Liabilities 0.00 0.00 0.00 0.00 0.00
Partner’s Capital 5,600,000.00 7,150,953.99 10,379,901.19 15,403,150.22 22,342,544.88
Net Income 1,550,953.99 3,228,947.20 5,023,249.03 6,939,394.66 8,969,397.00
Total Liabilities and Equity ₱ 7,150,953.99 10,379,901.19 15,403,150.22 22,342,544.88 31,311,941.88
Decision Parameter Computation
A. Normal Operation: Case=0
1. Payback Period
Year Net Income Cumulative
1 1,643,149.27 1,643,149.27
2 3,321,142.48 4,964,291.75
X
3 5,115,444.31 10,079,736.06
4 7,031,589.94 17,111,326.00
5 9,061,592.28 26,172,918.28
By Interpolation
𝑥−2 5,600,000.00−4,964,291.75
=
3−𝑥 5,115,444.31
x = 2.12 years or 2 years and 1 month
2. Rate of Return
Formula: ROI= Average of Net Income/Initial Investment

ROI= 5,142,388.38/5,600,000.00
ROI = 92%
3. Net Present Value
𝐴𝑡
NPV =
(1+𝑟)𝑡
Where: At = Cash Inflow/Outflow in a period
t = period (5year)
r = prevailing interest rate (10%)
𝐴𝑡 𝐴𝑡 𝐴𝑡 𝐴𝑡 𝐴𝑡
NPV = + + + + – Initial Investment
(1+0.10)1 (1+0.10)2 (1+0.10)3 (1+0.10)4 (1+0.10)5
5,547,919.17 8,869,061.65 13,984,505.96 21,016,095.90 30,077,688.18

NPV = + + + + – 5,600,000.00
(1+0.10)1 (1+0.10)2 (1+0.10)3 (1+0.10)4 (1+0.10)5
NPV = 62,572,107.51 – 5,600,000.00

NPV = 56,972,107.51
The proposed project has a positive NPV of ₱56,972,107.51. Having a positive net present value indicates that the
projected earnings generated by the project exceed the anticipated costs.
Exhibit 4. Income Statement (Case-1) Gross Income Decreased by 10%
Potato Kroketten

Sales ₱ 10,044,000.00 13,710,060.00 17,677,440.00 21,946,140.00 26,516,160.00
Less: Cost of Goods
Gross of Profit 3,842,961.44 5,900,969.72 8,114,997.22 10,474,531.21 12,968,376.97
2,743,312.88 2,811,528.00 2,903,087.17 2,999,570.27 3,101,192.68
Cost
Less: Income Tax 329,894.40 926,832.52 1,563,573.02 2,242,488.28 2,960,155.29
Net Income ₱ 769,754.16 2,162,609.20 3,648,337.03 5,232,472.66 6,907,029.00

Net Income by Tax 1,099,648.56 3,089,441.72 5,211,910.05 7,474,960.94 9,867,184.29
Tax rate 30% 30% 30% 30% 30%
Income Tax 329,894.40 926,832.52 1,563,573.02 2,242,488.28 2,960,155.29
Exhibit 2. Cash flow (Case-1) Gross Income Decreased by 10%
Potato Kroketten

Activities
Net Income/(Loss) 769,754.16 2,162,609.20 3,648,337.03 5,232,472.66 6,907,029.00
861,949.44 2,254,804.48 3,740,532.31 5,324,667.94 6,999,224.28
Activities
Purchase of Kitchen
Fixtures (141,554.50)
(1,695,230.10)
Activities
5,600,000.00
Cash 4,766,719.34 2,254,804.48 3,740,532.31 5,324,667.94 6,999,224.28
Cash, Beginning 4,766,719.34 7,021,523.82 10,762,056.13 16,086,724.07
Cash, Ending 4,766,719.34 7,021,523.82 10,762,056.13 16,086,724.07 23,085,948.35
Exhibit 3. Balance Sheet (Case-1) Gross Income Decreased by 10%
Potato Kroketten
For the years eneded year 1, year 2, year 3, year 4, year 5
Assets
Current Assets
Cash ₱ 4,766,719.34 7,021,523.82 10,762,056.13 16,086,724.07 23,085,948.35
Noncurrent Assets
Land 652,400.00 652,400.00 652,400.00 652,400.00 652,400.00
Building 537,309.60 537,309.60 537,309.60 537,309.60 537,309.60
Stand/Cart 133,263.00 133,263.00 133,263.00 133,263.00 133,263.00
Utensils 75,703.00 75,703.00 75,703.00 75,703.00 75,703.00
Less: Accumulated
Depreciation 92,195.28 184,390.56 276,585.84 368,781.12 460,976.40
Total Assets ₱ 6,369,754.16 8,532,363.36 12,180,700.39 17,413,173.05 24,320,202.05

Liabilities:
Net Income 769,754.16 2,162,609.20 3,648,337.03 5,232,472.66 6,907,029.00
B. Normal Operation: Case=1
4. Payback Period
1 861,949.44 861,949.44
2 2,254,804.48 3,116,753.92
X
3 3,740,532.31 6,857,286.23
4 5,324,667.94 12,181,954.17
5 6,999,224.28 19,181,178.45
By Interpolation
𝑥−2 5,600,000.00−3,116,753.92
=
3−𝑥 3,740,532.31
x = 2.66 years or 2 years and 8 months
5. Rate of Return
Formula: ROI = Average of Net Income/Initial Investment
ROI = 3,744,040.41/5,600,000.00
ROI = 67%
𝐴𝑡
NPV =
(1+𝑟)𝑡
t = period (5year)
(1+0.10)1 (1+0.10)2 (1+0.10)3 (1+0.10)4 (1+0.10)5
4,766,719.34 7,021,523.82 10,762,056.13 16,086,724.07 23,085,948.35

NPV = + + + + – 5,600,000.00
(1+0.10)1 (1+0.10)2 (1+0.10)3 (1+0.10)4 (1+0.10)5
NPV = 43,543,992.11 – 5,600,000.00

NPV = 37,943,992.11
Exhibit. Income Statement (Case-2) Cost of Good Increased by 10%
Potato Kroketten

Sales ₱ 11,160,000.00 15,233,400.00 19,641,600.00 24,384,600.00 29,462,400.00
Less: Cost of Goods
Gross of Profit 4,338,857.58 6,643,400.69 9,122,912.93 11,765,830.33 14,559,838.67
2,743,312.88 2,811,528.00 2,903,087.17 2,999,570.27 3,101,192.68
Cost
Less: Income Tax 478,663.41 1,149,561.81 1,865,947.73 2,629,878.02 3,437,593.80
Net Income ₱ 1,116,881.29 2,682,310.88 4,353,878.03 6,136,382.04 8,021,052.19

Net Income by Tax 1,595,544.70 3,831,872.69 6,219,825.76 8,766,260.06 11,458,645.99
Tax rate 30% 30% 30% 30% 30%
Income Tax 478,663.41 1,149,561.81 1,865,947.73 2,629,878.02 3,437,593.80
Exhibit 2. Cash flow (Case-2) Cost of Good Increased by 10%
Potato Kroketten

Activities
Net Income/(Loss) 1,116,881.29 2,682,310.88 4,353,878.03 6,136,382.04 8,021,052.19
1,209,076.57 2,774,506.16 4,446,073.31 6,228,577.32 8,113,247.47
Activities
Purchase of Kitchen
Fixtures (141,554.50)
(1,695,230.10)
Activities
5,600,000.00
Cash 5,113,846.47 2,774,506.16 4,446,073.31 6,228,577.32 8,113,247.47
Cash, Beginning 5,113,846.47 7,888,352.63 12,334,425.94 18,563,003.26
Cash, Ending 5,113,846.47 7,888,352.63 12,334,425.94 18,563,003.26 26,676,250.73
Exhibit 3. Balance Sheet (Case-2) Cost of Good Increased by 10%
Potato Kroketten
Assets
Current Assets
Cash ₱ 5,113,846.47 7,888,352.63 12,334,425.94 18,563,003.26 26,676,250.73
Noncurrent Assets
Land 652,400.00 652,400.00 652,400.00 652,400.00 652,400.00
Building 537,309.60 537,309.60 537,309.60 537,309.60 537,309.60
Stand/Cart 133,263.00 133,263.00 133,263.00 133,263.00 133,263.00
Utensils 75,703.00 75,703.00 75,703.00 75,703.00 75,703.00
Less: Accumulated
Depreciation 92,195.28 184,390.56 276,585.84 368,781.12 460,976.40
Total Assets ₱ 6,716,881.29 9,399,192.17 13,753,070.20 19,889,452.24 27,910,504.43

Liabilities:
Net Income 1,116,881.29 2,682,310.88 4,353,878.03 6,136,382.04 8,021,052.19
C. Normal Operation: Case=2
7. Payback Period
1 1,209,076.57 1,209,076.57
2 2,774,506.16 3,983,582.73
X
3 4,446,073.31 8,429,656.04
4 6,228,577.32 14,658,233.36
5 8,113,247.47 22,771,480.83
By Interpolation
𝑥−2 5,600,000.00−3,983,582.73
=
3−𝑥 4,446,073.31
8. Rate of Return
ROI = 4,462,100.89/5,600,000.00
ROI = 80%
𝐴𝑡
NPV =
(1+𝑟)𝑡
t = period (5year)
(1+0.10)1 (1+0.10)2 (1+0.10)3 (1+0.10)4 (1+0.10)5
5,113,846.47 7,888,352.63 12,334,425.94 18,563,003.26 26,676,250.73

NPV = + + + + – 5,600,000.00
(1+0.10)1 (1+0.10)2 (1+0.10)3 (1+0.10)4 (1+0.10)5
NPV = 49,677,921.70 – 5,600,000.00

NPV = 44,077,921.70
Exhibit. Income Statement (Case-3) Combination of Case-1 and Case-2
Potato Kroketten

Sales ₱ 10,044,000.00 13,710,060.00 17,677,440.00 21,946,140.00 26,516,160.00
Less: Cost of Goods
Gross of Profit 3,222,857.58 5,120,060.69 7,158,752.93 9,327,370.33 14,902,561.33
2,743,312.88 2,811,528.00 2,903,087.17 2,999,570.27 3,101,192.68
Cost
Net Income before Tax 479,544.70 2,308,532.69 4,255,665.76 6,327,800.06 11,801,368.65
Less: Income Tax 143,863.41 692,559.81 1,276,699.73 1,898,340.02 3,540,410.59
Net Income ₱ 335,681.29 1,615,972.88 2,978,966.03 4,429,460.04 8,260,958.06

Net Income by Tax 479,544.70 2,308,532.69 4,255,665.76 6,327,800.06 11,801,368.65
Tax rate 30% 30% 30% 30% 30%
Income Tax 143,863.41 692,559.81 1,276,699.73 1,898,340.02 3,540,410.59
Exhibit 2. Cash flow (Case-3)
Potato Kroketten

Activities
Net Income/(Loss) 335,681.29 1,615,972.88 2,978,966.03 4,429,460.04 8,260,958.06
427,876.57 1,708,168.16 3,071,161.31 4,521,655.32 8,353,153.34
Activities
Purchase of Kitchen
Fixtures (141,554.50)
(1,695,230.10)
Activities
5,600,000.00
Cash 4,332,646.47 1,708,168.16 3,071,161.31 4,521,655.32 8,353,153.34
Cash, Beginning 4,332,646.47 6,040,814.63 9,111,975.94 13,633,631.26
Cash, Ending 4,332,646.47 6,040,814.63 9,111,975.94 13,633,631.26 21,986,784.60
Exhibit 3. Balance Sheet (Case-3)
Potato Kroketten
Assets
Current Assets
Cash ₱ 4,332,646.47 6,040,814.63 9,111,975.94 13,633,631.26 21,986,784.60
Noncurrent Assets
Land 652,400.00 652,400.00 652,400.00 652,400.00 652,400.00
Building 537,309.60 537,309.60 537,309.60 537,309.60 537,309.60
Stand/Cart 133,263.00 133,263.00 133,263.00 133,263.00 133,263.00
Utensils 75,703.00 75,703.00 75,703.00 75,703.00 75,703.00
Less: Accumulated
Depreciation 92,195.28 184,390.56 276,585.84 368,781.12 460,976.40
Total Assets ₱ 5,935,681.29 7,551,654.17 10,530,620.20 14,960,080.24 23,221,038.30

Liabilities:
Net Income 335,681.29 1,615,972.88 2,978,966.03 4,429,460.04 8,260,958.06
D. Normal Operation: Case=3
10. Payback Period

1 335,681.29 335,681.29
2 1,615,972.88 1,951,654.17
3 2,978,966.03 4,930,620.20
X
4 4,429,460.04 9,360,080.24
5 8,260,958.06 17,621,038.30
By Interpolation
𝑥−2 5,600,000.00−4,930,620.20
=
3−𝑥 4,429,460.04

11. Rate of Return
ROI = 3,524,207.66 /5,600,000.00

ROI = 63%
𝐴𝑡
NPV =
(1+𝑟)𝑡
t = period (5year)
(1+0.10)1 (1+0.10)2 (1+0.10)3 (1+0.10)4 (1+0.10)5
4,332,646.47 6,040,814.63 9,111,975.94 13,633,631.26 21,986,784.60

NPV = + + + + – 5,600,000.00
(1+0.10)1 (1+0.10)2 (1+0.10)3 (1+0.10)4 (1+0.10)5
NPV = 38,741,157.67 – 5,600,000.00

NPV = 33,141,157.67
13. Table. Summary of Decision Parameter Result
Case Payback Period Rate of Return Net Present Value

0 2 years and 1 month 92% Positive Cash Flow
1 2 years and 8 months 67% Positive Cash Flow
14. Break Even Analysis
Break Even Point in Pesos Fixed Cost ₱ 2,798,903.65 ₱ 6,219,785.89

CM Rate 45%
Break Even point in Units Fixed Cost ₱ 2,798,903.65 310,989

Contribution Margin 9.00
2019 2020 2021 2022 2023

Break Even point
6,219,785.89 5,851,262.80 5,689,765.27 5,764,454.79 5,845,895.28
in Pesos
Break Even point
310,989 286,712 268,971 254,597 242,829
in Units
CM Rate 45% 49% 52% 53% 54%
Contribution
9.00 10 11 12 13
Margin
Formula:
Fixed Cost – Consist of Operating Expense and depreciation
Contribution Margin – Revenue - Variable Costs

Contribution Margin
2019 2020 2021 2022 2023

Sales 11,160,000.00 15,233,400.00 19,641,600.00 24,384,600.00 29,462,400.00
Less: Variable Cost 6,145,447.79 7,753,499.51 9,506,852.01 11,416,018.02 13,492,192.26
Contribution Margin 5,014,552.21 7,479,900.49 10,134,747.99 12,968,581.98 15,970,207.74
Fixed Costs 2,798,903.65 2,867,118.77 2,958,677.94 3,055,161.04 3,156,783.45
Margin of Safety
2019 2020 2021 2022 2023

Sales 11,160,000.00 15,233,400.00 19,641,600.00 24,384,600.00 29,462,400.00
Less: Break even Sales 6,219,785.89 5,851,262.80 5,689,765.27 5,764,454.79 5,845,895.28
Margin of Safety 4,940,214.11 9,382,137.20 13,951,834.73 18,620,145.21 23,616,504.72
Margin of Safety Rate 44% 62% 71% 76% 80%
Notes:
Break-even in
Sales = Fixed Cost
Contribution Margin Rate
Contribution Margin Rate = Contribution Margin

Sales
Margin of Safety = Sales in Pesos - Breakeven in Sales
Margin of Safety Rate = Margin of Safety

Sales
The breakeven point is where total sales equal total cost. At this point of sales; there is no profit or loss. Contribution margin equals
total fixed cost.
Margin of safety is the difference between sales and breakeven sales. It is the maximum amount of reduction in sales before a loss is
incurred.
The presence of margin of safety indicates profit. Margin of safety is the amount of sales in excess of breakeven point which means in
every peso of margin of safety, there is a profit. Profit is the incremental contribution margin after the breakeven point because all fixed
cost are already covered by the contribution margin.

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Schedule 2: Utensils And Equipment

Item Qty Unit Cost (Php) Amount (Php)

Item Unit Price/Unit Cost

Schedule 4: Furniture and Fixture

Personnel 2019 2020 2021 2022 2023

Schedule 8. Projected Cost of Production Overhead

Schedule 11. Projected Sales Income

Schedule 12. Amortization

Year 1 Year 2 Year 3 Year 4 Year 5

Schedule 15. Income Tax Computation (Case-0)

Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities and Equity

Formula: ROI= Average of Net Income/Initial Investment

Where: At = Cash Inflow/Outflow in a period

r = prevailing interest rate (10%)

5,547,919.17 8,869,061.65 13,984,505.96 21,016,095.90 30,077,688.18

NPV = 62,572,107.51 – 5,600,000.00

Year 1 Year 2 Year 3 Year 4 Year 5

Schedule 15. Income Tax Computation (Case-1)

Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities and Equity

Formula: ROI = Average of Net Income/Initial Investment

Where: At = Cash Inflow/Outflow in a period

r = prevailing interest rate (10%)

4,766,719.34 7,021,523.82 10,762,056.13 16,086,724.07 23,085,948.35

NPV = 43,543,992.11 – 5,600,000.00

Year 1 Year 2 Year 3 Year 4 Year 5

Schedule 15. Income Tax Computation (Case-2)

Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities and Equity

Formula: ROI= Average of Net Income/Initial Investment

Where: At = Cash Inflow/Outflow in a period

r = prevailing interest rate (10%)

5,113,846.47 7,888,352.63 12,334,425.94 18,563,003.26 26,676,250.73

NPV = 49,677,921.70 – 5,600,000.00

Year 1 Year 2 Year 3 Year 4 Year 5

Schedule 15. Income Tax Computation (Case-3)

Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities and Equity

10. Payback Period

x = 3.15 years or 3 years and 2 months

Formula: ROI= Average of Net Income/Initial Investment

ROI = 3,524,207.66 /5,600,000.00

Where: At = Cash Inflow/Outflow in a period

r = prevailing interest rate (10%)

4,332,646.47 6,040,814.63 9,111,975.94 13,633,631.26 21,986,784.60

NPV = 38,741,157.67 – 5,600,000.00

13. Table. Summary of Decision Parameter Result

Case Payback Period Rate of Return Net Present Value

Break Even Point in Pesos Fixed Cost ₱ 2,798,903.65 ₱ 6,219,785.89

Break Even point in Units Fixed Cost ₱ 2,798,903.65 310,989

2019 2020 2021 2022 2023

Fixed Cost – Consist of Operating Expense and depreciation

Contribution Margin – Revenue - Variable Costs

2019 2020 2021 2022 2023

Fixed Costs 2,798,903.65 2,867,118.77 2,958,677.94 3,055,161.04 3,156,783.45

2019 2020 2021 2022 2023

Contribution Margin Rate = Contribution Margin

Margin of Safety = Sales in Pesos - Breakeven in Sales

Margin of Safety Rate = Margin of Safety

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