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Chapter 10

The document discusses the capital requirements and funding of the K-Siete Tilapia Farm partnership business. Each partner will contribute 500,000 pesos in capital. The capital will be used to cover startup costs, operating expenses, renovations like new flooring and doors, and ongoing utility bills to power the business. The document provides tables outlining the capital shares, uses of funds, renovation expenses, and expected monthly and annual utility costs.

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Ruthchell Ciriaco
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56 views4 pages

Chapter 10

The document discusses the capital requirements and funding of the K-Siete Tilapia Farm partnership business. Each partner will contribute 500,000 pesos in capital. The capital will be used to cover startup costs, operating expenses, renovations like new flooring and doors, and ongoing utility bills to power the business. The document provides tables outlining the capital shares, uses of funds, renovation expenses, and expected monthly and annual utility costs.

Uploaded by

Ruthchell Ciriaco
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER X

CAPITAL REQUIREMENTS AND FUNDING

The capital requirement is the sum of funds that the K-Siete Tilapia Farm

company needs to achieve like the company’s goals or how much money the partnership

business like K-Siete Tilapia Farm need until the business is up and running. This can

calculate the capital requirements by adding founding expenses, investments and start-up

costs together.

Table 10.1 The K-Siete Tilapia Farm Capital Requirement and Funding

10.1 Desired Financing

The K-Siete Tilapia Farm desired financing is a clear statement of how the capital

will be obtained which stated that each partner of the business venture the K-Siete Tilapia

Farm will contribute five hundred thousand pesos (₱500,000) each fair share capital with

the terms of fair share of expenses and profit sharing accordingly.

10.2 Capitalization
This partnership business of K-Siete Tilapia Farm which fairly allotted capital of

500,000 pesos each from the owners in the name of Ameejoie G. Batucal, Ernesto Intong

and Cheryl-An Decolongan is to ensure that every owner will get the same shares, gains

and even expenses in their ventured business and that everyone is accountable for the K-

Siete Tilapia Farm accordingly.

Table 10.2 The Fair Capital Shares of the K-Siete Tilapia Farm Partnership
Business

10.3 Use of Funds

The K-Siete Tilapia Farm use of funds indicates the important usage of funds out

from the business sources of funds including the share capital, bonds, equity, deposit

interest directly poured to the fund uses like business expenses, bond interest, bond fees

and legal business taxes. This is for the business gains as the business continue to

operate.

Table 10.3 The Uses of Funds of K-Siete Tilapia Farm


Moreover, the uses of funds may also be allocated to the business renovation

expenses that might be needed for the business to offer the customer a better physical

dine-in experience to better serve the customers dement and meet the customers’

expectations.

Table 10.4 The Renovation Expenses of K-Siete Tilapia Farm


RENOVATION EXPENSE QUANTITY PRICE TOTAL
Marine Plywood 2 Pieces 1,000 2,000
Electric Cable 1 roll 1,000 1,000
Nails 1kg 100 100
Floor Mat 1 roll 750 750
Sink 2 pieces 500 1,000
Door Knob 2 pieces 160 320
Design Materials 3,000
TOTAL 8,170

Additionally, the uses of funds also can be use or allocate payments for the

business utility expenses like the electric bill, water bill, internet bill and gasoline

expenses monthly and annually.

Table 10.5 The utility Expenses of the K-Siete Tilapia Farm


DESCRIPTION MONTHLY ANNUALLY
Electric Bill 3,500 42,000
Water Bill 1,500 18,000
Internet Bill 1,699 20,388
Total 80,388

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