9. Financial Study

CHAPTER 5

FINANCIAL STUDY

I. Introduction

The portion that shows the specified terms whether the business will be profitable

even with existing competition and unfavourable economic conditions, and present

detailed figures to show the improvement of the business’ financial condition over time

can be foresee in the financial aspect.

Being an important aspect, it requires the preparation of financial statement and

the analysis of several benchmarks in the form of ratios ailed from the statements, the

entire study practically boils down to a question of profitability.

II. Objectives of the Study

The study aims:

1. To estimate the major assumption for revenues and expenditures.

2. To prepare the project cost.

3. To determine the source of capital.

4. To determine the profitability of the business in the midst of a growing

competition as well as to show the accurate figures of the overall operation

of the business.

III. Major Assumptions of the Study

64% of total clients will purchase international tickets while 36% of it will

purchase domestic tickets only.

40% of total international clients will avail passport processing.

65% of total passport processing are regular and 35% are rush.

15% of total international clients will avail visa assistance.

The growth rate of the market share is 10%, thus, increasing the projected sales by

10%.

The average commission or mark-up on ticket is price is fixed.

Salaries and wages will be the same for five years.

Rent expense is fixed at P 38,800.00 per month a total of P 465,600.00 a year and

subject to the policy of two (2) months deposit.

Utilities expense is composed of electricity, water, PLDT Plan 1899, Smart Post-

paid Plan 599, and Globe Post-paid Plan 599. Electricity will increase by 2%

annually, while water will increase by 1% annually. Other utilities will remain the

same.

Office equipment, and furniture and fixtures will have an estimated useful life of

5 years with 10% salvage value. Leasehold improvements will have an estimated

useful life of 10 years, lease is ordinary thus leasehold improvements have zero

residual value.

The company is subject to Value Added Tax (VAT) because its gross income for

the year exceeds P 1,919,500.00.

The profit sharing of the partners is based on the contributed capital, which means

they will share equally.

The initial capital is P 1,200,000.00 with each partner contributing P 200,000.

IV. Source of Financing

The business will be financed by the original partners and with long-term notes.

Long-term notes will be issued for P 500,000 at face value with 12% annual interest.

There will be a cash reserve for operations amounting to P100,000 for immediate

need for cash.

Schedule 5.1

Safe & Sound Travel Agency

Project Cost

Costs AmountLeasehold Improvements

MaterialsLaborOverhead

200,000.00150,000.0080,000.00 P430,000.00

Office Equipment 206,600.00Furniture and Fixtures 118,400.00Office Supplies 12,680.00

2

Initial Operating ExpenseBusiness RegistrationPrepaid Rent (2 months)Marketing and AdvertisingHiring and Training

Total

20,365.0077,600.0045,000.005,000.00

147,965.00Total Initial Cost P915,645.00Cash Reserved for Operations 100,000.00Total Project Cost P1,015,645.00

V. Financial Statements

Income Statement

It is a computation of the project’s total revenues and total costs for one period or

fiscal year, thereby arriving at the concern’s net income or deficit within the period,

together with its performance in terms of profitability and cost of control. It differs from

the cash budget in the sense that it follows the accrual concept in accounting, by which

revenues should be associated with the costs involved in realizing the former within the

period of occurrence.

Balance Sheet

It shows the assets derived by the project from corresponding liabilities and

equities. It is an overall picture of a firm’s financial condition as of a certain time.

Furthermore, it shows the major changes brought about by the project’s operations within

the fiscal period. The assets are entered under the debit portion of the balance sheet while

the liability and equity claims on these assets are found under the credit portion.

Cash Flow Statement

It is also known as cash budget. It is a systematic presentation of cash receipts and

disbursements for a given operating period or fiscal year, taking for granted the accrual

concept in accounting. The cash budget is also used to estimate future loans or financing

needs optimize the timing of project financing, and maximize profitability by efficient

cash utilization.

3

SAFE AND SOUND TRAVEL AGENCYComparative Statement of Comprehensive Income

For Years Ended 2015, 2016, 2017, 2018

Schedule 2015 2016 2017 2018 2019Commission Income 5.1 1179669 1318451 1473192 1645697 1837971Service Income 5.2 361664 404212 451652 504539 563486Total Income 5.3 1541333 1722663 1924845 2150236 2401458Operating ExpensesSalary Expense 6.1 839600 839600 839600 839600 839600Rent Expense 7 465600 465600 465600 465600 465600Depreciation Expense 9.4 144500 144500 144500 144500 144500Office Supplies Expense 10.2 12046 11195 11364 11589 11820Utilities Expense 11.5 106011 107281 108576 109897 111245Advertising Expense 12.2 45000 45900 46818 47754 48709Permit and Licenses 13.2 20365 1100 1100 1100 1100Miscellaneous Expense 14 70000 65000 65000 65000 65000Interest Expense 16 60000 60000 60000 60000 60000Net Income (221788) (17513) 182286 405196 653883Income Tax Expense (Benefit) 17 (88715) (7005) 72914 162078 261553Net Income after Taxes (133073) (10508) 109372 243117 392330

4

SAFE AND SOUND TRAVEL AGENCYComparative Statement of Changes in Owner's Equity

For Years Ended 2015, 2016, 2017, 2018

Abariso, Capital

Cruz, Capital

Dalangin, Capital

Espiritu, Capital

Fernandez, Capital Mateo, Capital Total

Capital, 01/01/15 200000 200000 200000 200000 200000 200000 1200000Net Income, 2015 (22179) (22179) (22179) (22179) (22179) (22179) (133073)Capital, 01/01/16 177821 177821 177821 177821 177821 177821 1066927Net Income, 2016 (1751) (1751) (1751) (1751) (1751) (1751) (10508)Capital, 01/01/17 176070 176070 176070 176070 176070 176070 1056419Net Income, 2017 18229 18229 18229 18229 18229 18229 109372Capital, 01/01/18 194298 194298 194298 194298 194298 194298 1165791Net Income, 2018 40520 40520 40520 40520 40520 40520 243117Capital, 01/01/19 234818 234818 234818 234818 234818 234818 1408908Net Income, 2019 65388 65388 65388 65388 65388 65388 392330Capital, 31/12/19 300206 300206 300206 300206 300206 300206 1801238

5

SAFE AND SOUND TRAVEL AGENCYComparative Statement of Cash Flows

For Years Ended 2015, 2016, 2017, 2018

2015 2016 2017 2018 2019Cash flow from Operating ActivitiesGross Receipts 1541333 1722663 1924845 2150236 2401458Salary Paid (750359) (750359) (750359) (750359) (750359)Rent Paid (465600) (465600) (465600) (465600) (465600)Office Supplies Paid (12680) (11150) (11373) (11600) (11832)Utilities Paid (106011) (107281) (108576) (109897) (111245)Advertising Paid (45000) (45900) (46818) (47754) (48709)Permit and Licences Paid (20365) (1100) (1100) (1100) (1100)Miscellaneous Paid (70000) (65000) (65000) (65000) (65000)Advances to Lessor (77600) 0 0 0 0SSS Contribution Paid 0 (17440) (17440) (17440) (17440)PhilHealth Contribution Paid 0 (6600) (6600) (6600) (6600)Pag-IBIG Contribution Paid 0 (3600) (3600) (3600) (3600)Withholding Tax Paid 0 (61601) (61601) (61601) (61601)Income Tax Paid 0 0 0 (22806) (116466)

Cash flow from Investing ActivitiesPurchase of Equipment (206600) 0 0 0 0Purchase of Furniture and Fixtures (118400) 0 0 0 0Purchase of Leasehold Improvements (430000) 0 0 0 0

Cash Flow from Financing ActivitiesOriginal Investment 1200000 0 0 0 0Issuance of Notes payable 500000 0 0 0 0Interest Paid (60000) (60000) (60000) (60000) (60000)

Net Cash Flow 878718 127032 326777 526878 681905Cash Balance, beg 0 878718 1005750 1332527 1859405Cash Balance, end 878718 1005750 1332527 1859405 2541310

6

SAFE AND SOUND TRAVEL AGENCYComparative Statement of Financial Position

For Years Ended 2015, 2016, 2017, 2018

Schedule 2015 2016 2017 2018 2019Assets

Current AssetsCash CF 878718 1005750 1332527 1859405 2541310Office Supplies 10.2 634 589 598 610 622

Noncurrent AssetsAdvances to Lessor 8.0 77600 77600 77600 77600 77600Equipment, net 9.1 169412 132224 95036 57848 20660Furniture and Fixtures, net 9.2 97088 75776 54464 33152 11840Leasehold Improvements, net 9.3 344000 258000 172000 86000 0Income Tax Benefit 17 88715 95721 22806 0 0

Total Assets 1656168 1645660 1755031 2114615 2652032

LiabilitiesCurrent LiabilitiesSSS Contribution Payable 6.3 17440 17440 17440 17440 17440PhilHealth Contribution Payable 6.4 6600 6600 6600 6600 6600Pag-IBIG Contribution Payable 6.5 3600 3600 3600 3600 3600Withholding Tax Payable 6.6 61601 61601 61601 61601 61601Income Tax Payable 18 0 0 0 116466 261553

7

Noncurrent LiabilitiesNotes Payable 15 500000 500000 500000 500000 500000

Total Liabilities 589241 589241 589241 705707 850794

Shareholder's EquityAbariso, Capital 177821 176070 194298 234818 300206Cruz, Capital 177821 176070 194298 234818 300206Dalangin, Capital 177821 176070 194298 234818 300206Espiritu, Capital 177821 176070 194298 234818 300206Fernandez, Capital 177821 176070 194298 234818 300206Mateo, Capital 177821 176070 194298 234818 300206Total Shareholer's Equity 1066927 1056419 1165791 1408908 1801238

Total Liabilities and Shareholder's Equity 1656168 1645660 1755031 2114615 2652032

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Schedule 1

Historical Demand

Year PopulationMarket Acceptability

RateFrequency of Availing

Annually Annual Demand2010 919169 34% 1 3125172011 934795 34% 1 3178302012 950686 34% 1 3232332013 966848 34% 1 3287282014 983284 34% 1 334317

Projected DemandYear Population A Yi-1 Yc

2015 919169 5450 334317 3397672016 934795 5450 339767 3452172017 950686 5450 345217 3506672018 966848 5450 350667 3561172019 983284 5450 356117 361567

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Projected SupplyYea

r DemandSupply Situation

Rate Annual Supply2015 339767 92% 3125852016 345217 92% 3175992017 350667 92% 3226132018 356117 92% 3276272019 361567 92% 332641

Schedule 2

Historical Supply

Year DemandSupply Situation

RateAnnual Supply

2010 312517 92% 2875162011 317830 92% 2924042012 323233 92% 2973752013 328728 92% 3024302014 334317 92% 307571

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Schedule 3

Assumptions: Market Share Increase 10.00%

Demand-Supply Gap

Year Demand GapTarget Market Share

PercentageTarget Annual Market

Share2015 27181 7% 19032016 27617 7.70% 21272017 28053 8.47% 23762018 28489 9.32% 26542019 28925 10.25% 2964

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Schedule 4

2015 Annual Market Share Base PercentageNumber of

ClientsDomestic 1903 Annual Market Share 36% 685International 1903 Annual Market Share 64% 1218Passport Processinga. Rush 731 International Tickets 35% 256b. Regular 731 International Tickets 65% 475Visa 1218 International Tickets 15% 183

2016 Annual Market Share Base Percentage Number of Clients

Domestic 2127 Annual Market Share 36% 766International 2127 Annual Market Share 64% 1361Passport Processinga. Rush 817 International Tickets 35% 286b. Regular 817 International Tickets 65% 531Visa 1361 International Tickets 15% 204



2018 Annual Market Share Base Percentage Number of

12

ClientsDomestic 2654 Annual Market Share 36% 956International 2654 Annual Market Share 64% 1699Passport Processinga. Rush 1019 International Tickets 35% 357b. Regular 1019 International Tickets 65% 663Visa 1699 International Tickets 15% 255



Commission IncomeSchedule 5.1 2015 2016 2017 2018 2019Commission per Ticket 300 300 300 300 300Number of Clients 685 766 855 956 1067Total Income – Domestic 205491 229666 256621 286670 320163

Commission per Ticket 800 800 800 800 800Number of Clients 1218 1361 1521 1699 1897Total Income - International 974179 1088785 1216572 1359027 1517809

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Service IncomeSchedule 5.2 2015 2016 2017 2018 2019Service Fee 500 500 500 500 500Number of Clients-Rush 256 286 319 357 398Total Income - Passport Processing-Rush 127861 142903 159675 178372 199212

Service Fee 300 300 300 300 300Number of Clients-Regular 475 531 593 663 740Total Income - Passport Processing-Regular 142474 159235 177924 198758 221979

Service Fee 500 500 500 500 500Number of Clients 183 204 228 255 285Total Income - Visa Assistance 91329 102074 114054 127409 142295

Schedule 5.3 2015 2016 2017 2018 2019Total Commission Income 1179669 1318451 1473192 1645697 1837971Total Service Income 361664 404212 451652 504539 563486Total Income 1541333 1722663 1924845 2150236 2401458

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Schedule 6

Monthly

Position Status Gross Pay

SSS Philhealth Pag-Ibig Withholding TaxER EE Total ER EE Total ER EE Total

Manager S 20000 1209 581 1790 250 250 500 100 100 200 2917Officer 1 S 12000 894 436 1330 150 150 300 100 100 200 1108Liaison 1 S 12000 894 436 1330 150 150 300 100 100 200 1108Total 44000 2997 1453 4450 550 550 1100 300 300 600 5133

Annually

Position Status Gross Pay

SSS Philhealth Pag-Ibig Withholding TaxER EE Total ER EE Total ER EE Total

Manager S 240000 14504 6976 21480 3000 3000 6000 1200 1200 2400 35001Officer 1 S 144000 10728 5232 15960 1800 1800 3600 1200 1200 2400 13300Liaison 1 S 144000 10728 5232 15960 1800 1800 3600 1200 1200 2400 13300Total 528000 35960 17440 53400 6600 6600 13200 3600 3600 7200 61601

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Monthly

Position Status Gross Pay SSS PHILHEALTH PAG-IBIG WITHHOLDING TAXEE EE EE

Manager S 20000 581 250 100 2917Officer 1 S 12000 436 150 100 1108Liaison 1 S 12000 436 150 100 1108Total 44000 1453 550 300 5133

Annually

Position Status Gross Pay SSS PHILHEALTH PAG-IBIG WITHHOLDING TAXEE EE EE

Manager S 240000 6976 3000 1200 35001Officer 1 S 144000 5232 1800 1200 13300Liaison 1 S 144000 5232 1800 1200 13300Total 528000 17440 6600 3600 61601

Position 2015 2016 2017 2018 2019Manager 193823 193823 193823 193823 193823Accountant 216000 216000 216000 216000 216000Officer 1 122468 122468 122468 122468 122468Liaison 1 122468 122468 122468 122468 122468Computer Technician 6000 6000 6000 6000 6000Electrical Technician 6000 6000 6000 6000 6000Janitor 21600 21600 21600 21600 21600Total 688359 688359 688359 688359 688359Schedule 6.1 2015 2016 2017 2018 2019

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Net Cash Pay 688359 688359 688359 688359 688359SSS Contribution 17440 17440 17440 17440 17440PhilHealth Contribution 6600 6600 6600 6600 6600Pag-IBIG Contribution 3600 3600 3600 3600 3600Withholding Tax 61601 61601 61601 61601 61601Salary Expense 777600 777600 777600 777600 77760013th Month Pay 62000 62000 62000 62000 62000Total Salary Expense 839600 839600 839600 839600 839600

Schedule 6.2 2015 2016 2017 2018 2019Salaries Payable, beg 0 0 0 0 0Net Cash Pay 750359 750359 750359 750359 750359Cash Paid 750359 750359 750359 750359 750359Salaries Payable, end 0 0 0 0 0

Schedule 6.3 2015 2016 2017 2018 2019SSS Contribution Payable, beg 0 17440 17440 17440 17440Increase in Contribution Payable 17440 17440 17440 17440 17440Cash Paid 0 17440 17440 17440 17440SSS Contribution Payable, end 17440 17440 17440 17440 17440

Schedule 6.4 2015 2016 2017 2018 2019PhilHealth Contribution Payable, beg 0 6600 6600 6600 6600Increase in Contribution Payable 6600 6600 6600 6600 6600Cash Paid 0 6600 6600 6600 6600PhilHealth Contribution Payable, end 6600 6600 6600 6600 6600

Schedule 6.5 2015 2016 2017 2018 2019

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Pag-IBIG Contribution Payable, beg 0 3600 3600 3600 3600Increase in Contribution Payable 3600 3600 3600 3600 3600Cash Paid 0 3600 3600 3600 3600Pag-IBIG Contribution Payable, end 3600 3600 3600 3600 3600

Schedule 6.6 2015 2016 2017 2018 2019Withholding Tax Payable, beg 0 61601 61601 61601 61601Increase in Contribution Payable 61601 61601 61601 61601 61601Cash Paid 0 61601 61601 61601 61601Withholding Tax Payable, end 61601 61601 61601 61601 61601

Schedule 7Monthly Rental

Number of Months 2015 2016 2017 2018 2019

Rent Payable, beg 0 0 0 0 0Rent Expense 38800 12 465600 465600 465600 465600 465600Rent Paid 465600 465600 465600 465600 465600Rent Payable, end 0 0 0 0 0

Schedule 8Monthly Rental

Number of Months 2015 2016 2017 2018 2019

Advances to Lessor 38800 2 77600 77600 77600 77600 77600

Schedule 9.1 DepreciationQty Cost Total

CostTotal

Salvage Estimated

Years2015 2016 2017 2018 2019

18

ValueComputer 4 19000 76000 7600 5 13680 13680 13680 13680 13680Computer Software 1 50000 50000 5000 5 9000 9000 9000 9000 9000Printer 1 6800 6800 680 5 1224 1224 1224 1224 1224Fax Machine 1 11800 11800 1180 5 2124 2124 2124 2124 2124Television 1 33000 33000 3300 5 5940 5940 5940 5940 5940Air Conditioner 3 8000 24000 2400 5 4320 4320 4320 4320 4320Water Dispenser 1 5000 5000 500 5 900 900 900 900 900Total Equipment

206600 20660 37188 37188 37188 37188 37188

Carrying Value Accumulated Depreciation2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

62320 48640 34960 21280 7600 13680 27360 41040 54720 6840041000 32000 23000 14000 5000 9000 18000 27000 36000 450005576 4352 3128 1904 680 1224 2448 3672 4896 61209676 7552 5428 3304 1180 2124 4248 6372 8496 10620

27060 21120 15180 9240 3300 5940 11880 17820 23760 2970019680 15360 11040 6720 2400 4320 8640 12960 17280 216004100 3200 2300 1400 500 900 1800 2700 3600 4500

169412 132224 95036 57848 20660 37188 74376 111564 148752 185940

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Schedule 9.2 Depreciation

Quantity CostTotal Cost

Total Salvage Value

Estimated Years 2015 2016 2017 2018 2019

Cash Vault 1 5000 5000 500 5 900 900 900 900 900Office Table 2 5100 10200 1020 5 1836 1836 1836 1836 1836Clerical Chair 3 1600 4800 480 5 864 864 864 864 864Customer's Chair 2 1100 2200 220 5 396 396 396 396 396Couch 2 12900 25800 2580 5 4644 4644 4644 4644 4644Shelf 2 11200 22400 2240 5 4032 4032 4032 4032 4032Reservation Counter 1 10000 10000 1000 5 1800 1800 1800 1800 1800Center Table 1 13400 13400 1340 5 2412 2412 2412 2412 2412Table 1 24600 24600 2460 5 4428 4428 4428 4428 4428Total Furniture and Fixtures

118400 11840 21312 21312 21312 21312 21312

Carrying Value Accumulated Depreciation2015 2016 2017 2018 2019 2015 2016 2017 2018 20194100 3200 2300 1400 500 900 1800 2700 3600 45008364 6528 4692 2856 1020 1836 3672 5508 7344 91803936 3072 2208 1344 480 864 1728 2592 3456 43201804 1408 1012 616 220 396 792 1188 1584 1980

21156 16512 11868 7224 2580 4644 9288 13932 18576 2322018368 14336 10304 6272 2240 4032 8064 12096 16128 201608200 6400 4600 2800 1000 1800 3600 5400 7200 9000

10988 8576 6164 3752 1340 2412 4824 7236 9648 1206020172 15744 11316 6888 2460 4428 8856 13284 17712 2214097088 75776 54464 33152 11840 21312 42624 63936 85248 106560

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Schedule 10.1 Unit Price Quantity Total CostBallpen 40 5 200Bond Paper (short) 149 5 745Carbon Paper 12 3 36Cash Register Tape 20 40 800Clipboard 75 2 150Columnar notebook 34 6 204Correction Fluid 35 5 175Cutter 27.75 5 138.75Expandable Folder 15 10 150Fastener 22.5 1 22.5Fire Extinguisher 1500 2 3000Folder (short) 3 15 45Glue 20 3 60Highlighter 24 5 120Masking Tape 30 5 150Paper Clip (33mm) 6.75 2 13.5Pay Slip Envelope 13.25 1 13.25Pencil 20.75 5 103.75Permanent Marker 19 5 95Printer’s Ink (black) 390 5 1950Printer’s Ink (colored) 390 5 1950Puncher 89 2 178Record Book 60 2 120Rubber Band 166 2 332Ruler (12”) 14 2 28Scissors 18 2 36Scotch Tape 21 5 105Sharpener 14.7 2 29.4Stamping Dater 74.75 1 74.75Stamp Pad Ink 27 5 135Stapler 57.75 3 173.25Staple Wires (#35) 23 10 230Time Card 74 2 148White Board (2X3ft.) 825 1 825White Board Marker 23.75 5 118.75White Board Eraser 12.5 2 25TOTAL 12680

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Schedule 10.2 2015 2016 2017 2018 2019Office Supplies, beg 0 634 589 598 610Purchases 12680 11150 11373 11600 11832Office Supplies, end 634 589 598 610 622Office Supplies Expense 12046 11195 11364 11589 11820

Schedule 11.2 m3/Month Minimum Charge Monthly Cost Annual Cost

Water Less than 10m3 189 189 2272

Schedule 11.3 Quantity/Month Price Monthly Cost Annual CostDrinking Water 10 35 350 4200

Schedule 11.4 Quantity/Month Price Monthly Cost Annual CostPLDT Subscription Plan 1 1899 1899 22788Postpaid - Smart 1 599 599 7188Postpaid - Globe 1 599 599 7188

Schedule 11.5 2015 2016 2017 2018 2019Electricity 62375 63622 64895 66192 67516Water 2272 2295 2318 2341 2364Drinking Water 4200 4200 4200 4200 4200PLDT Subsription Plan 22788 22788 22788 22788 22788Postpaid - Smart 7188 7188 7188 7188 7188Postpaid - Globe 7188 7188 7188 7188 7188Total Utilities Expense 106011 107281 108576 109897 111245

Schedule 11.5 2015 2016 2017 2018 2019Utilities Payable, beg 0 0 0 0 0Total Utilities Expense 106011 107281 108576 109897 111245Total Utilities Paid 106011 107281 108576 109897 111245Utilities Payable, end 0 0 0 0 0

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Schedule 12.1 Quantity Cost Total CostPromotional Posters 18x24 20 50 1000Tarpaulin 30 sq. ft. 10 900 9000Leaflets 3x8 5000 2 10000Foldable fans 2000 10 20000Calling Cards 5000 1 5000Total 45000

Schedule 12.2 2015 2016 2017 2018 2019Advertising Payable, beg 0 0Advertising Expense 45000 45900 46818 47754 48709Cash Paid 45000 45900 46818 47754 48709Advertising Payable, end 0 0 0 0 0

Schedule 13.1Procedures to Register Business Cost

1.Register the company with the Securities and Exchange Commission (SEC) 2400

2. Notarize articles of co-partnership and treasurer's affidavit at the notary 5003. Register the company with the BIR and receive pre-registered Taxpayer Identification Number (TIN) from the BIR 500

4. Obtain barangay clearance 2505. Pay the annual community tax and obtain the community tax certificate (CTC) from the City Treasurer's Office (CTO) 500

6. Obtain the business permit to operate from the BPLO 54007. Buy special books of account at bookstore 4008. Apply for Certificate of Registration (COR) and TIN at the Bureau of Internal Revenue (BIR) 115

9. Pay the registration fee and documentary stamp taxes (DST) at the AAB 5700

10. Obtain the authority to print receipts and invoices from the BIR No charge11. Print receipts and invoices at BIR 350012. Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIR No charge

13. Register with the Social Security System (SSS) No charge14. Register with the Philippine Health Insurance Company (PhilHealth) No charge15. Register with Home Development Mutual Fund (Pag-ibig) No chargeTotal Registration Cost 19265Yearly Accreditation Fee 1100Total Permit and Licences 20365

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Schedule 13.2 2015 2016 2017 2018 2019Permit and Licences Payable, beg 0 0 0 0 0Permit and Licences Fee 20365 1100 1100 1100 1100Cash Paid 20365 1100 1100 1100 1100Permit and Licences Payable, end 0 0 0 0 0

Schedule 14 2015 2016 2017 2018 2019Miscellaneous Payable, beg 0 0 0 0 0Hiring and Training 5000 0 0 0 0Transportation 50000 50000 50000 50000 50000Repairs and Maintenance 15000 15000 15000 15000 15000Total Miscellaneous Expense 70000 65000 65000 65000 65000Cash Paid 70000 65000 65000 65000 65000Miscellaneous Payable, end 0 0 0 0 0

Schedule 15 2015 2016 2017 2018 2019Note Payable, beg 0 500000 500000 500000 500000Notes Issued 500000 0 0 0 0Notes Paid 0 0 0 0 0Note Payable, end 500000 500000 500000 500000 500000

Schedule 16 2015 2016 2017 2018 2019Interest Payable, beg 0 0 0 0 0Interest Expense 60000 60000 60000 60000 60000Interest Paid 60000 60000 60000 60000 60000Interest Payable, end 0 0 0 0 0

Schedule 18 2015 2016 2017 2018 2019Income Tax Payable (Benefit), beg 0 (88715) (95721) (22806) 116466Income Tax Expense (88715) (7005) 72914 162078 261553Income Tax Paid 0 0 0 22806 116466Income Tax Payable (Benefit), end (88715) (95721) (22806) 116466 261553

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Schedule 17.1 2015 2016 2017 2018 2019Gross ReceiptsCommission Income 1179669 1318451 1473192 1645697 1837971Service Income 361664 404212 451652 504539 563486Total Receipts subject to VAT 1541333 1722663 1924845 2150236 2401458Rate 1/9 1/9 1/9 1/9 1/9Total Output VAT 165143 184571 206233 230382 257299

Schedule 17.2 2015 2016 2017 2018 2019Gross PaymentsPayment for Capital Assets 755000 0 0 0 0Rent Paid 543200 465600 465600 465600 465600Office Supplies 12680 11150 11373 11600 11832Utilities 106011 107281 108576 109897 111245Advertising 45000 45900 46818 47754 48709Miscellaneous 70000 65000 65000 65000 65000Total Payments subject to VAT 1531891 694931 697367 699852 702387Rate 1/9 1/9 1/9 1/9 1/9Total Input Taxes 164131 74457 74718 74984 75256

Schedule 17.3 2015 2016 2017 2018 2019VAT Payable, beg 0 1012 111126 242641 398040Output VAT 165143 184571 206233 230382 257299Input VAT 164131 74457 74718 74984 75256VAT Payable 1012 111126 242641 398040 580083VAT Paid 1012 111126 242641 398040 580083VAT Payable, end 0 0 0 0 0

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Financial Evaluation Measures

2015 2016 2017 2018 2019Liquidity Ratio

A.Working Capital= Current Assets-Current Liabilities 790111.68 917098.60 1243884.701654308.2

7 2191138.22B. Current Asset Ratio=Current Assets/Current Liabilities 9.85 11.28 14.94 9.04 7.25C. Acid Test Ratio=Quick Assets/Current Liabilities 9.85 11.27 14.93 9.04 7.24

Profitability RatioA. Net Profit Margin = Net Income / Sales -9% -1% 6% 11% 16%B. Return on Investment = Net Income / Capital -12% -1% 9% 17% 22%C. Return on Asset = Net Income / Total Assets -8% -1% 6% 11% 15%

Asset Management Ratio

Total Assets Turnover = Sales / Total Assets

0.93

1.05

1.10

1.02

0.91

Debt Management RatioA. Debt Ratio = Total Liabilities / Total Assets 0.36 0.36 0.34 0.33 0.32B. Debt/ Equity Ratio = Total Liabilities / Total Owner’s Equity 0.55 0.56 0.51 0.50 0.47

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Capital Budgeting Evaluation Measures

Payback Period: YearRemaining amount of investment to recover

Cash Flows

1 1015645 8787182 136927 1270323 9895

Payback Period: 2.03 years

Net Present Value: Required Rate of Return (assumption) 15%Year Cash Flows

1 8787182 1270323 3267774 5268785 681905

NPV= 699644.72

Profitability Index: 1.69

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Documents

9. Financial Study