SANTO TOMAS

Enterprise Name: WATERMELON

Financial Aspect

Project Cost Summary

This table shows the total project cost of the enterprise. It is the summary

cost of the Taxes and Licenses, Property and Equipment, Raw materials and

supplies of the product, salary and wages, and other expenses.

Taxes and
Licenses
Business Permit Fees
Mayor's Permit 500
Business Tax 30
Sanitary Inspection Fee 50
Garbage Fee 300
City Government and Natural Resources
Solid Waste Management
Certificate 50
Signboard Fees 200
Tax Clearance Fees 60
Zoning Fee 150
Occupation Permit 200
MHO/ Medical Fee 100
Bureau of Fire Protection 120
Notarization of Business Permit 100
SSS Registration Plate
TOTAL TAXES AND
LICENSES 1,860
Property and Equipment
Rental 180,000
Equipment and Kitchen Supplies 46,939
Furniture and Fixtures 30,000
Store Preparation 15,000
TOTAL PROPERTY AND
EQUIPMENT 271,939
Raw materials and
Supplies
Watermelon 22,620
Ice 44,208
Full Cream Milk 30,576
Condesed Milk 18,612
Evaporated Milk 213,540
Powdered MilkTea 62,232
Chocolate Syrup 47,040
White Sugar 52,560
Purified Water 42,720
Lime 14,100
Tapioca Pearl 4,620
Buko scrapes 19,920
Banana 35,280
26,533.4
Jackfruit 4
Cereals 19,920
Additives 11,760
Drinking Glass 5,400
Straw 13,800
Cup with Lids 18,480
13,463.6
Electricity 4
Total Raw materials and Supplies 717,385
Office Supply 12,000
Advertising Expense 6,399
Initial working
Fund 712,800
1,722,38
TOTAL PROJECT COST 3
Source of Financing

The Fresh Watermelon Delight is an enterprise made of by nine (9) businessmen. The sources of its financing for

the business startup is divided into two parts: Personal investment and commercial bank loan.

Each of the nine (9) owners will have a capital contribution of P85,000 each or 4.81586402% each in the total

capital and the sum of P765,000.00 or 43.34277618% in the total capital as Personal Investment. As the firm needed a

total capital of P1,765,000.00 to start and operate for its first one (1) year, the other source of capital is produced from

financial loan through commercial banks amounting to P1,765,000.00 or 56.65722382% of the total capital which is to be

paid for six (6) months .The firm chooses this source of financing as the owners cannot provide the whole amount needed

to start in the operation of the business. The firm also chooses to have a personal investments to lessen the banks

interest. Another reason is that the benefits of personal finance include an ability to effectively budget for costs, higher

savings rates, and making prudent investment choices that will help the individual reach his or her financial goals

(financial educators council)

At some point, according to REVTEK CAPITAL, every business needs an outside source of capital to further

growth. For small businesses and startups, there are a variety of ways to raise capital. One of those methods is bank

loans, which, in the right circumstances, can benefit a business in the short and long-term.Through the help of bank loan,
the enterprise can start and function well in its beginning year with no fear of lacking Capital as Bizfluent says, bank

loans offer significantly lower interest rates than you will find with credit cards or overdraft.

Description of Source of Funds Amount % of Total

Contribution from Partner 1 P 85,000.00 4.81586402%

Contribution from Partner 2 P 85,000.00 4.81586402%

Contribution from Partner 3 P 85,000.00 4.81586402%

Contribution from Partner 4 P 85,000.00 4.81586402%

Contribution from Partner 5 P 85,000.00 4.81586402%

Contribution from Partner 6 P 85,000.00 4.81586402%

Contribution from Partner 7 P 85,000.00 4.81586402%

Contribution from Partner 8 P 85,000.00 4.81586402%

Contribution from Partner 9 P 85,000.00 4.81586402%

Total from Owner’s Capital 43.34277618%

Loan from Bank P 1,000,000.00 56.65722382%

Total Funds for Startup of New Business P1,000,000.00 100%

The Fresh Watermelon Delight firm will be able to start and continue its operation in the market. As when you

receive a bank loan, the bank will not provide a set of rules dictating how you spend the money, bank loans can provide
you the flexibility to spend the money where you see fit. Whether you need capital to purchase new equipment, enter a

new market, or carry out a new marketing plan, you can use the money from a bank loan (REVTEK CAPITAL). until it is

ready enough and earning profit after a year of star-up.

Revenue Forecasting

The table shows the price of each product of the enterprise. The total revenue for the whole year in which the unit

sold product multiplied to the price of the product.

Revenue Forecasting this year

Fresh Watermelon Juice 50

Watermelon Smoothies 50
Watermelon Slushie 50
Watermelon Bubble Teas 80
Watermelon in a Bowl 150

Total Revenue for the year 2022

January
Unit sold for Fresh Watermelon Juice
Total revenue for Fresh Watermelon Juice 31,800.00

Unit sold for Watermelon Smothies

Total revenue for Watermelon Smoothies 24,600.00

Unit sold for Watermelon Slushie

Total revenue for Watermelon Slushie 24,000

Unit sold for Watermelon Bubble Teas

Total revenue for Watermelon Bubble Teas 34,560
Unit sold for Watermelon in a Bowl
Total revenue for Watermelon in a Bowl 64,800

August September
636 636
31,800.00 31,800.00

492 492
24,600.00 24,600.00

480 480
24,000 24,000

432 432
34,560 34,560

432 432
64,800 64,800
Projected Income Statement

This table below shows the monthly and yearly income statement of the enterprise. In which, the Gross profit minus

the total operating expense.

Income Statement Income Statement

(Monthly) (Year 2022)

Revenue Revenue
Fresh Watermelon Juice 31,800 Fresh Watermelon Juice 381,800
Watermelon Smoothies 24,600 Watermelon Smoothies 295,200
Watermelon Slushie 24,000 Watermelon Slushie 288,000
Watermelon Bubble Teas 34,560 Watermelon Bubble Teas 414,720
Watermelon in a Bowl 64,800 Watermelon in a Bowl 777,600

Total Gross Sales 179,760 Total Gross Sales 2,157,320

COGS COGS
Watermelon 18,885 Watermelon 22,620
Ice 3684 Ice 44,208
Full Cream Milk 2548 Full Cream Milk 30,576
Condesed Milk 1551 Condesed Milk 18,612
Evaporated Milk 17795 Evaporated Milk 213,540
Powdered MilkTea 5186 Powdered MilkTea 62,232
Chocolate Syrup 3920 Chocolate Syrup 47,040
White Sugar 4380 White Sugar 52,560
Purified Water 3560 Purified Water 42,720
Lime 1175 Lime 14,100
Tapioca Pearl 385 Tapioca Pearl 4,620
Buko scrapes 1660 Buko scrapes 19,920
Banana 2940 Banana 35,280
Jackfruit 2211.12 Jackfruit 26,533.44
Cereals 1660 Cereals 19,920
Additives 980 Additives 11,760
Drinking Glass 450 Drinking Glass 5,400
Straw 1150 Straw 13,800
Cup with Lids 1540 Cup with Lids 18,480
Electricity 1121.97 Electricity 13,463.64
Labor 11,800 Labor 141,600
Electricity (Fixed Cost) 1650 Electricity (Fixed Cost) 19,800

Total COGS 90,232 Total COGS 878,785

Gross Profit 89,528 Gross Profit 1,278,535

Operating Expense Operating Expense

Advertising and Marketing Expense Advertising and Marketing Expense
Internet Expense 1,399 Internet Expense 16,788
Utility Expense Utility Expense
Rent 15,000 Rent 180,000
Water Bill 300 Water Bill 3,600
Gas Bill 1,550 Gas Bill 18,600
Supplies Expense Supplies Expense
Office Supplies 1,000 Office Supplies 12,000
Store Supplies 500 Store Supplies 6,000
Cleaning Equipments 500 Cleaning Equipments 6,000
Depreciation on Equipments 162 Depreciation on Equipments 1,938

Total Operating Expense 20,411 Total Operating Expense 244,926

Net Income 69,117 Net Income 1,033,608

Income Statement Income Statement
(Year 2022) (Year 2023)

Revenue Revenue
Fresh Watermelon Juice 381,800 Fresh Watermelon Juice 381,800
Watermelon Smoothies 295,200 Watermelon Smoothies 295,200
Watermelon Slushie 288,000 Watermelon Slushie 288,000
Watermelon Bubble Teas 414,720 Watermelon Bubble Teas 414,720
Watermelon in a Bowl 777,600 Watermelon in a Bowl 777,600

Total Gross Sales with 5

Total Gross Sales 2,157,320 % 2,265,186

COGS COGS
Watermelon 22,620 Watermelon 22,620
Ice 44,208 Ice 44,208
Full Cream Milk 30,576 Full Cream Milk 30,576
Condesed Milk 18,612 Condesed Milk 18,612
Evaporated Milk 213,540 Evaporated Milk 213,540
Powdered MilkTea 62,232 Powdered MilkTea 62,232
Chocolate Syrup 47,040 Chocolate Syrup 47,040
White Sugar 52,560 White Sugar 52,560
Purified Water 42,720 Purified Water 42,720
Lime 14,100 Lime 14,100
Tapioca Pearl 4,620 Tapioca Pearl 4,620
Buko scrapes 19,920 Buko scrapes 19,920
Banana 35,280 Banana 35,280
Jackfruit 26,533.44 Jackfruit 26,533.44
Cereals 19,920 Cereals 19,920
Additives 11,760 Additives 11,760
Drinking Glass 5,400 Drinking Glass 5,400
Straw 13,800 Straw 13,800
Cup with Lids 18,480 Cup with Lids 18,480
Electricity 13,463.64 Electricity 13,463.64
Labor 141,600 Labor 141,600
Electricity (Fixed Cost) 19,800 Electricity (Fixed Cost) 19,800

Total COGS 878,785 Total COGS 878,785

Gross Profit 1,278,535 Gross Profit 1,386,401

Operating Expense Operating Expense

Advertising and Marketing Expense Advertising and Marketing Expense
Internet Expense 16,788 Internet Expense 16,788
Utility Expense Utility Expense
Rent 180,000 Rent 180,000
Water Bill 3,600 Water Bill 3,600
Gas Bill 18,600 Gas Bill 18,600
Supplies Expense Supplies Expense
Office Supplies 12,000 Office Supplies 12,000
Store Supplies 6,000 Store Supplies 6,000
Cleaning Equipments 6,000 Cleaning Equipments 6,000
Depreciation on Depreciation on
Equipments 1,938 Equipments 1,938

Total Operating Expense 244,926 Total Operating Expense 244,926

Net Income 1,033,608 Net Income 1,141,474

Income Statement Income Statement

(Year 2024) (Year 2025)

Revenue Revenue
Fresh Watermelon Juice 381,800 Fresh Watermelon Juice 381,800
Watermelon Smoothies 295,200 Watermelon Smoothies 295,200
Watermelon Slushie 288,000 Watermelon Slushie 288,000
Watermelon Bubble Teas 414,720 Watermelon Bubble Teas 414,720
Watermelon in a Bowl 777,600 Watermelon in a Bowl 777,600

Total Gross Sales with

5% 2,378,445 Total Gross Sales with 5% 2,497,367

COGS COGS
Watermelon 22,620 Watermelon 22,620
Ice 44,208 Ice 44,208
Full Cream Milk 30,576 Full Cream Milk 30,576
Condesed Milk 18,612 Condesed Milk 18,612
Evaporated Milk 213,540 Evaporated Milk 213,540
Powdered MilkTea 62,232 Powdered MilkTea 62,232
Chocolate Syrup 47,040 Chocolate Syrup 47,040
White Sugar 52,560 White Sugar 52,560
Purified Water 42,720 Purified Water 42,720
Lime 14,100 Lime 14,100
Tapioca Pearl 4,620 Tapioca Pearl 4,620
Buko scrapes 19,920 Buko scrapes 19,920
Banana 35,280 Banana 35,280
Jackfruit 26,533.44 Jackfruit 26,533.44
Cereals 19,920 Cereals 19,920
Additives 11,760 Additives 11,760
Drinking Glass 5,400 Drinking Glass 5,400
Straw 13,800 Straw 13,800
Cup with Lids 18,480 Cup with Lids 18,480
Electricity 13,463.64 Electricity 13,463.64
Labor 141,600 Labor 141,600
Electricity (Fixed Cost) 19,800 Electricity (Fixed Cost) 19,800

Total COGS 878,785 Total COGS 878,785

Gross Profit 1,499,660 Gross Profit 1,618,582

Operating Expense Operating Expense

Advertising and Marketing Expense Advertising and Marketing Expense
Internet Expense 16,788 Internet Expense 16,788
Utility Expense Utility Expense
Rent 180,000 Rent 180,000
Water Bill 3,600 Water Bill 3,600
Gas Bill 18,600 Gas Bill 18,600
Supplies Expense Supplies Expense
Office Supplies 12,000 Office Supplies 12,000
Store Supplies 6,000 Store Supplies 6,000
Cleaning Equipments 6,000 Cleaning Equipments 6,000
Depreciation on
Equipments 1,938 Depreciation on Equipments 1,938

Total Operating
Expense 244,926 Total Operating Expense 244,926
Income Statement
(Year 2026)

Revenue
Fresh Watermelon Juice 381,800
Net IncomeSmoothies
Watermelon 1,254,734
295,200 Net Income 1,373,656
Watermelon Slushie 288,000
Watermelon Bubble Teas 414,720
Watermelon in a Bowl 777,600

Total Gross Sales with 5% 2,622,235

COGS The table above shows the yearly income statement from 2022-
Watermelon 22,620
Ice 44,208 2026. In which, every year has the assumption of 5% increase in Gross
Full Cream Milk 30,576
sale.
Condesed Milk 18,612
Evaporated Milk 213,540
Powdered MilkTea 62,232
Chocolate Syrup 47,040 Farmer’s Income Improvement
White Sugar 52,560
Purified Water 42,720 A certain Regie Lee Abary of Feeder Road #1 North Gate,
Lime 14,100
Tapioca Pearl 4,620 Sto.Tomas Davao del Norte says, an additional order 3,804 kilos of
Buko scrapes 19,920
Banana 35,280 watermelon from Fresh Watermelon Delight annually will surely add the
Jackfruit 26,533.44
farmers profit and help improve their farming life. The said person is a rice
Cereals 19,920
Additives 11,760
and watermelon farmer. His watermelon farm is located at Blue Star
Drinking Glass 5,400
Straw 13,800 Kinamayan Sto. Tomas. With last year’s abundant harvest of 32tons of
Cup with Lids 18,480
Electricity 13,463.64 watermelon amounting to P256,000.00 as sold for P8.00 per kilo, the
Labor 141,600
Electricity (Fixed Cost) 19,800 farmer said that the previous harvest were delivered and supplied to loyal

Total COGS 878,785

Gross Profit 1,743,450

 customers. He said that an additional order from a new buyer of 3,804 kilos annually definitely add to their income in the

amount of P30,432 as sold for P8.00 per kilo.

This may not yet double the farmer’s income but will surely increase not only to the farmer’s income but also to

agriculture production in the town. As the Fresh Watermelon Delight looking forward and aims to grow the business bigger

and better in each coming years, the watermelon purchases will also increase. With a promising increase of purchases,

the watermelon farmers will be attracted more in using better farming techniques to improve the quantity and quality of

crops. As the quality of watermelon improves, this ensures also improves the taste of Fresh Watermelon Delight products

and helps increase the quantity of demands and may give the possibility of doubling not only the enterprises income but

also the farmers income .

Cash Flow Statement

Fresh Watermelon Delight
    2022 2023 2024 2025 2026
Beginning Balance ₱0.00 ₱1,894,160.00 ₱2,205,125.00 ₱2,634,349.30 ₱3,182,495.57
  Initial Capitalization (Fund Source)  
  Owner's Capital ₱765,000.00  
  Other Fund Sources ₱1,000,000.00  
Total Capital ₱1,765,000.00  
   
Cash Cash Receipts from
Inflow Operations 2,157,320.00 2,265,186.00 2,378,445.30 2,497,367.27 2,622,235.63
  Other Cash Inflow          
               
   
Total Cash Inflow   ₱2,157,320.00 ₱2,265,186.00 ₱2,378,445.30 ₱2,497,367.27 ₱2,622,235.63

Total 3,922,320.00 4,159,346.00 4,583,570.30 5,131,716.57 5,804,731.19

   
   
Cash
Outflow Cost of Equipment 76,939.00 3,000.00 3,000.00 3,000.00 3,000.00

  Operating Expenses 878,785.00 878,785.00 878,785.00 878,785.00 878,785.00

  Other Expenses 177,776.00 177,776.00 172,776.00 172,776.00 172,776.00

  Salary and Wages 712,800.00 712,800.00 712,800.00 712,800.00 712,800.00

  Rental   180,000.00 180,000.00 180,000.00 180,000.00 180,000.00

  Taxes and Licensing 1,860 1,860 1,860 1,860 1,860
Total Cash Outflow   ₱2,028,160.00 ₱1,954,221.00 ₱1,949,221.00 ₱1,949,221.00 ₱1,949,221.00
 
Ending Balance ₱1,894,160.00 ₱2,205,125.00 ₱2,634,349.30 ₱3,182,495.57 ₱3,855,510.19
Projected Statement of Cash Flow

This table show the cash flow of the enterprise. In which, The enterprise has 1,765,00.00 capital, 2,157,320.00

cash inflow and, 2,028,160.00 cash outflow. In order for the enterprise to get the ending balance each year, the formula

should be: add the total capital and total cash inflow then subtract the total cash outflow. The cash flow will show you if the

sales increase, if your capital can sustain the business, and if the business is feasible for long term
Return on Investment and Payback Period

Return on Investment and Payback

Period

Net Income per

Year 1,033,608
Total Capital 1,765,000
Total 0.585613598
x 100
Return on
Investment 58.56135977
or 58 %
Total Capital/ Net Income 1st Year Payback period 1.707610622

The table above shows the return on investment and the payback period of the enterprise. In which, this can

evaluate the performance of the enterprise. It will show the enterprise efficiency and profitability. Where, the enterprise

has the return on investment of 58%. Also, the payback period of the enterprise is 1.7.
Financial Assumption

Total Project Cost 1,722,383

Source of Financing 1,765,000

Net Income 1st Year 1,033,608

Return on Investment 58.56%

Payback Period 1.7076

This table show the financial assumption of the enterprise. The total project cost

of the enterprise is 1,722,383 pesos. Now the enterprise has a capital of 1,765,000

pesos acquire through personal investment or contribution and business loan. The net

income for the 1st year of the enterprise in 1,033,608.00. The formula to obtain the net

income is Gross profit of the enterprise subtract the total operating expense of the

enterprise. The return on investment of the enterprise is 58.56%. The payback period in

which the total capital divided by the net income of the enterprise is 1.7076.