Scribd
Upload
42 views7 pages

Chapter 7 - Financial Aspect

The document provides financial projections for a nutrition business over three years. It includes projected income statements, statements of financial position, and cash flow statements. It assumes a 6% yearly increase in sales. Depreciation is calculated using the straight-line method. Interest is charged at 12%. Projected expenses include cost of goods sold, salaries, depreciation, supplies, rent and utilities. Owners' equity increases each year as retained earnings are reinvested in the business. Cash flow is positive each year as operating activities generate more cash than is used for investing and financing activities.

Uploaded by

Ays Bernal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
42 views7 pages

Chapter 7 - Financial Aspect

The document provides financial projections for a nutrition business over three years. It includes projected income statements, statements of financial position, and cash flow statements. It assumes a 6% yearly increase in sales. Depreciation is calculated using the straight-line method. Interest is charged at 12%. Projected expenses include cost of goods sold, salaries, depreciation, supplies, rent and utilities. Owners' equity increases each year as retained earnings are reinvested in the business. Cash flow is positive each year as operating activities generate more cash than is used for investing and financing activities.

Uploaded by

Ays Bernal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Chapter 7 Financial Aspect

1. Financial Assumptions
Depreciation
In computing for the depreciation we use the straight line method where we assume
the salvage value and the number of useful life.
Interest Expense
In computing for the interest expense we use the standard rate which is 12%
Sales
We assumed that the sales will increase 6% yearly
2. Projected financial statements
Statement of Financial Position
Assets
Current Assets
Cash
Inventories
Formula 1
Formula 2
Formula 3
Herbal Tea Concentrate
Herbal Aloe Concentrate
Oats
Banana
Milk
Water

Supplies on hand
Kitchen glasses
Customer information sheet
Shot glass
broom
dustpan
zonrox
hand soap
dishwashing soap
sponge
Tissue
Apron
Gloves

Year 1

Year 2

Year 3

1,247,553.50

1,496,716.79

1,683,654.09

37,475.00
17,450.00
40,700.00
57,275.00
43,000.00
2,400.00
500.00
1,280.00
175.00
200,255.00

37,475.00
17,450.00
40,700.00
57,275.00
43,000.00
2,400.00
500.00
1,280.00
175.00
200,255.00

37,475.00
17,450.00
40,700.00
57,275.00
43,000.00
2,400.00
500.00
1,280.00
175.00
200,255.00

2,400.00
1,000.00
440.00
160.00
100.00
660.00
2,396.00
350.00
125.00
210.50
240.00
600.00

2,400.00
1,000.00
440.00
160.00
100.00
660.00
2,396.00
350.00
125.00
210.50
240.00
600.00

2,400.00
1,000.00
440.00
160.00
100.00
660.00
2,396.00
350.00
125.00
210.50
240.00
600.00

Uniform: Nutritionist
Uniform: Waiter/Cashier
Uniform: Maintenance/Dishwasher
Uniform: Zumba Instructor
Books
Magazines
DVDs
Medicine Kit
Ballpen

Prepaid Rent
Total Current Asset
Non-Current Assets
Equipmentss
Tanita
Electric fan
Television
DVD Player
Refigirator
Blender
Computer
Air conditioner
Water Dispenser

Accumulated Depriciation
Tanita
Electric fan
Television
DVD Player
Refigirator
Blender
Computer
Air conditioner
Water Dispenser

Total Non-Current Assets


Total Assets

600.00
600.00
600.00
600.00
2,000.00
1,500.00
3,000.00
1,700.00
280.00
19,561.50

600.00
600.00
600.00
600.00
2,000.00
1,500.00
3,000.00
1,700.00
280.00
19,561.50

600.00
600.00
600.00
600.00
2,000.00
1,500.00
3,000.00
1,700.00
280.00
19,561.50

60,000.00
1,527,370.00

60,000.00
1,776,533.29

60,000.00
1,963,470.59

5,000.00
700.00
22,000.00
2,500.00
60,000.00
7,500.00
15,000.00
7,000.00
15,000.00
134,700.00

5,000.00
700.00
22,000.00
2,500.00
60,000.00
7,500.00
15,000.00
7,000.00
15,000.00
134,700.00

5,000.00
700.00
22,000.00
2,500.00
60,000.00
7,500.00
15,000.00
7,000.00
15,000.00
134,700.00

980.00
230.00
1,200.00
460.00
2,750.00
1,200.00
2,400.00
500.00
350.00
10,070.00

1,960.00
460.00
2,400.00
920.00
5,500.00
2,400.00
4,800.00
1,000.00
700.00
20,140.00

2,940.00
690.00
3,600.00
1,380.00
8,250.00
3,600.00
7,200.00
1,500.00
1,050.00
30,210.00

124,630.00

114,560.00

104,490.00

1,652,000.00

1,891,093.29

2,067,960.59

Current Liabilities
Salaries Payable
Nutritionist
Waiter/Cashier
Maintenance/Dishwasher
Zumba Instructor
Total Current Liabilities
Non-Current Liabilities
Notes Payable
Total Non-Current Liabilities

16,000.00
10,000.00
9,000.00
7,000.00
42,000.00

16,000.00
10,000.00
9,000.00
7,000.00
42,000.00

16,000.00
10,000.00
9,000.00
7,000.00
42,000.00

110,000.00
110,000.00

110,000.00
110,000.00

110,000.00
110,000.00

TOTAL LIABILITIES

152,000.00

152,000.00

152,000.00

Contributed Capital
Angela Burgos, Capital
Reymund Bungcayao, Capital
Sylvester Castro, Capital
Maui Enriquez, Capital
Chyna Villaverde, Capital
Total Contributed Capital

300,000.00
300,000.00
300,000.00
300,000.00
300,000.00
1,500,000.00

347,818.66
347,818.66
347,818.66
347,818.66
347,818.66
1,739,093.29

383,192.12
383,192.12
383,192.12
383,192.12
383,192.12
1,915,960.59

Total Liabilities and Owners' Equity

1,652,000.00

1,891,093.29

2,067,960.59

Income Statement
Year 1
Net Sales
Expenses:
Costs of Good Sold
Direct Material
Canister
Formula 1
Formula 2
Formula 3
Tea
Aloe
TOTAL CGS
Salaries

Year 2

Year 3

5,421,242.40

5,746,516.94

6,091,307.96

2,118,882.58

2,246,015.53

2,380,776.46

205,363.00
151,998.00
207,570.00
396,343.00
266,600.00
1,227,874.00
3,346,756.58

217,684.78
161,117.88
220,024.20
420,123.58
282,596.00
1,301,546.44
3,547,561.97

230,745.87
170,784.95
233,225.65
445,330.99
299,551.76
1,379,639.23
3,760,415.69

Nutritionist
Waiter/Cashier
Maintenance/Dishwasher
Zumba Instructor

Depriciation
Supplies Exp
Utilities
Electricity
Water
Telephone
Cable and Wifi

Rent
Interest
Total expenses
Net Income before tax
LESS: Income tax expense
30%
Net Income after tax

Cash flows from operating


activities
Profit before tax
Adjustment:
Depreciation
Exp
Interest
Expense
CASH GENERATED FROM
OPERATIONS
(Increase)Decrease in
Inventory
(Increase)Decrease in
Supplies
(Increase)Decrease in
Prepaid Rent
Increase(Decrease in
Salaries Payable
Interest paid

192,000.00
120,000.00
108,000.00
84,000.00
504,000.00

192,000.00
120,000.00
108,000.00
84,000.00
504,000.00

192,000.00
120,000.00
108,000.00
84,000.00
504,000.00

10,070.00
19,561.50

10,070.00
0.00

10,070.00
0.00

97,072.92
44,390.76
8,400.00
11,988.00
161,851.68

97,072.92
44,390.76
8,400.00
11,988.00
161,851.68

97,072.92
44,390.76
8,400.00
11,988.00
161,851.68

120,000.00
2,640.00
4,164,879.76

120,000.00
2,640.00
4,346,123.65

120,000.00
2,640.00
4,558,977.37

1,256,362.64

1,400,393.29

1,532,330.59

(376,908.79)
879,453.85
Cashflow

(420,117.99)
980,275.31

(459,699.18)
1,072,631.41

1,288,084.14

1,402,553.29

1,534,490.59

10,070.00

10,070.00

10,070.00

2,640.00

2,640.00

2,640.00

1,300,794.14

1,415,263.29

1,547,200.59

(200,255.00)

(19,561.50)

(60,000.00)

42,000.00
(2,640.00)

(2,640.00)

(2,640.00)

Inc tax paid


Net cash from operating
activities
Cash flows from investing
activities
Acquisition of equipment

Cash flows from financing


activities
Proceeds from borrowings
Proceeds from issuance of
Capital
Net cash from
financing
NET INCREASE IN CASH
3. Ratio Analysis

(377,535.79)

(420,744.99)

(460,326.18)

682,801.85

991,878.30

1,084,234.41

110,000.00

699.00

335,439.34

599,419.68

699,451.70

338,798.30

599,419.68

1,247,553.50

1,330,676.60

1,683,654.09

(134,700.00)

4. Selling Price Schedule

Dine in Drink (Members)


Selling Price
121.50
Formula 1
Milk
Water
Banana
Oats
Tea
Aloe
Total Cost
CM
Mark-up

34.07
16.00
1.40
2.50
3.00
12.73
14.33
84.03
37.47
44.59%

To-Go Members
Formula 1
Selling
Price
Cost
CM
Mark-up
Formula 2
Selling
Price
Cost
CM
Mark-up
Formula 3
Selling
Price
Cost
CM
Mark-up

Non-Members
Formula 1
Selling
Price
Cost
CM
Mark-up

1,499.00
749.50
749.50
100.00%

625.10
329.00
296.10
90.00%

Formula 2
Selling
Price
Cost
CM
Mark-up

658.00
329.00
329.00
100.00%

1,546.60
814.00
732.60
90.00%

Formula 3
Selling
Price
Cost
CM
Mark-up

1,628.00
814.00
814.00
100.00%

1,424.05
749.50
674.55
90.00%

Herbal Tea Concentrate


Selling
Price
2,176.45
Cost
1,145.50
CM
1,030.95
Mark-up
90.00%

Herbal Tea Concentrate


Selling
Price
2,291.00
Cost
1,145.50
CM
1,145.50
Mark-up
100.00%

Herbal Aloe Concentrate


Selling
Price
1,634.00
Cost
860.00
CM
774.00
Mark-up
90.00%

Herbal Aloe Concentrate


Selling
Price
1,634.00
Cost
860.00
CM
774.00
Mark-up
90.00%

5. Production Cost Schedule

Dine in Drink (Members)


Selling Price
121.50
Formula 1
34.07
Milk
16.00
Water
1.40
Banana
2.50
Oats
3.00
Tea
12.73
Aloe
14.33
Total Cost
84.03

To-Go Members / Non-members (per canister)


Formula 1
749.50
Formula 2
329.00
Formula 3
814.00
Herbal Tea Concentrate
1,145.50
Herbal Aloe Concentrate
860.00

You might also like