BSMPC

COMPARATIVE INCOME STATEMENT

For the years 2010, 2011, 2012,2013,2014
  2010 2011 2012 2013 2014
Gross Sales                
Gross Sales                
Sales - Merchandising 242,500.00   302,100.00   455,000.00 794,500.00   1,581,700.00  
Sales - Photocopying 132,000.00   165,525.00   250,700.00 436,625.00   745,900.00  
Gross Sales 374,500.00   467,625.00   705,700.00   1,231,125.00 2,327,600.00
Cost of Goods Sold              
Merchandise Inv. -
Beg 30,000.00   45,000.00   55,000.00 65,000.00   75,000.00  
Add: Purchases 135,000.00   200,000.00   300,000.00 400,000.00   500,000.00  
Cost of Goods Avail.
For Sale 165,000.00   245,000.00   355,000.00 465,000.00   575,000.00  
Less: Merchandise
Inv. - End -45,000.00   -55,000.00   -65,000.00 75,000.00   75,000.00  
Cost of Goods Sold 120,000.00   190,000.00   290,000.00   390,000.00 500,000.00
Gross Margin 254,500.00   277,625.00   415,700.00   841,125.00 1,827,600.00
Operating Expense              
Office Supplies 30,000.00   5,000.00   9,700.00     13,500.00  
Rent Expense 36,000.00   36,000.00   36,000.00 5,000.00   36,000.00  
Depreciation Expense 17,913.33   17,913.33   15,913.33 36,000.00   15,913.33  
Fee 2,000.00   2,000.00   2,000.00 15,913.33   21,740.20  
Utilities Expense 18,000.00   18,780.00   19,719.00 2,000.00   12,000.00  
Taxes & Licenses 12,000.00   12,000.00   12,000.00 20,704.95   3,900.00  
Interest Expense 2,094.26   2,094.26   2,094.26 12,000.00   15,136.80  
PHIC Contribution 3,900.00   3,900.00   3,900.00 2,094.26   20,000.00  
SSS Contribution 15,136.80   15,136.80   15,136.80 3,900.00   6,000.00  
Amortization -
24,781.20 24,781.20 24,781.20
Photocopy Machine     15,136.80   25,000.00  
Amortization -
16,612.17 16,612.17
Desktop Computer            
Transportation 12,000.00   8,000.00   8,000.00 10,000.00    
Honorarium 6,000.00   6,000.00   6,000.00 6,000.00    
Repairs &
Maintenance 10,000.00   8,000.00   8,000.00 8,000.00    
Selling Expense 2,500.00   1,000.00   500.00 1,000.00   3,000.00  
General Assembly -
5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Expense        
Salaries & Wages 237,600.00   237,600.00   237,600.00 237,600.00   237,600.00  
Total Operating
Expenses 451,537.76   419,817.76   406,344.59   380,349.34 414,790.33
Net Profit (Loss)   -197,037.76   -142,192.76   9,355.41   460,775.66   1,412,809.67
Notes:

* paid 3,000 monthly for rental amounted to 36,000 per year

* paid 1,500 for utility expense amounted to 18,000 per year. The proponents assumed that it increases by 5% every year

* incurred depreciation expense amounted to 17, 913.33 breakdown as follows:

* the estimated life of computer is 5 years, 7000 per year.
* the estimated life of photocopying machine is 10 years, 4000 per year for each machine.
* the estimated life of stand fan is 2 years, 913.33 per year
* the estimated life of furniture and fixtures is 15 years, 913.33 per year.

the method used for the amortization of computer and photocopying machine resulted to:
* Desktop Computer = Php 16,612.17
* photocopying machine = Php 24, 781.20
* the interest incurred from the acquisition of loan amounted to Php 2, 094.26 per year.

* the sales of the bsmpc are genrated from merchandising and photcopying services. The proponents assumed that it increases every
year by 25%, 50%, 75% and 100% respectively

* during the first and 2nd year of operation the business incurred loses amounted to 197,037.76 and 142, 192.76 respectively
since it hasn't recovered yet the capital it invested on fixed assets and also there are lots of cash disbursements during its first year.
however, in the succeeding years the business was able to cope the loss it incurred in the subsequent years. In fact, the business was able
to gain a net suplus of 9, 355.41, 460, 775.66 and 1, 412, 809.67 respectively.

* since it incurred loses during its first year there is no declaration of dividends.
 BSMPC
COMPARATIVE BALANCE SHEET
For the years 2010, 2011, 2012,2013,2014
2010 2011 2012 2013 2014
ASSET                    
Current Asset                  
Cash in Bank 47,175.57   54,071.14   168,839.88   705,028.87   2,062,151.87
Accounts Receivable 2,500.00   625.00   1,825.00   2,325.00   2,425.00
Merchandise Inventory 45,000.00   55,000.00   65,000.00   75,000.00   75,000.00
Office Supplies Inventory 5,000.00   700.00   1,000.00   1,000.00   2,500.00
Total Current Assets 99,675.57   110,396.14   236,664.88   783,353.87   2,142,076.87
Non-Current Assets                  
Equipment - Stand Fan 4,000.00   4,000.00     ------------   ------------   ------------
Accumulated Depreciation -2,000.00 2,000.00 -4,000.00 0.00   ------------   ------------   ------------
Equipment - Computer 35,000.00   35,000.00   35,000.00   35,000.00   35,000.00  
Accumulated Depreciation -7,000.00 28,000.00 -14,000.00 21,000.00 -21,000.00 14,000.00 -28,000.00 7,000.00 -35,000.00 0.00
Furniture & Fixtures 13,700.00   13,700.00   13,700.00   13,700.00   13,700.00  
Accumulated Depreciation -913.33 12,786.67 -1,826.66 11,873.34 -2,739.99 10,960.01 -3,653.32 10,046.68 -4,566.65 9,133.35
Machinery 80,000.00   80,000.00   80,000.00   80,000.00   80,000.00  
Accumulated Depreciation 8,000.00 72,000.00 -16,000.00 64,000.00 -24,000.00 56,000.00 -32,000.00 48,000.00 -40,000.00 40,000.00
Total Non- Current Assets 114,786.67   96,873.34   80,960.01   65,046.68   49,133.35
TOTAL ASSETS 214,462.24   207,269.48   317,624.89   848,400.55   2,191,210.22
LIABILITY & MEMBERS' EQUITY                  
LIABILITY                  
Accounts Payable 84,000.00   109,000.00   110,000.00   130,000.00   30,000.00
Total Liability 84,000.00   109,000.00   110,000.00   130,000.00   30,000.00
RESERVES:                  
Reserve Fund               141,280.97  
Education & Training Fund               141,280.97  
Community Dev't Fund               42,384.30  
Optional Fund               98,896.68  
Total Reserves                 423,842.92
MEMBERS' EQUITY                  
Paid-up Capital 312,500.00   ------------   ------------   ------------   ------------  
Donated Capital 15,000.00   ------------   ------------   ------------   ------------  
Forwarded Members' Equity ------------   130,462.24   98,269.48   207,624.89   718,400.55  
Issued Shares ------------   110,000.00   100,000.00   50,000.00   30,000.00  
  327,500.00   240,462.24   198,269.48   257,624.89   748,400.55
Undivided Net Surplus (Loss) -197,037.76   -142,192.76   9,355.41   460,775.66   988,966.75
Total Members' Equity 130,462.24   98,269.48   207,624.89   718,400.55   1,737,367.30
TOTAL
LIABILITIES,RESERVES & 214,462.24   207,269.48   317,624.89   848,400.55   2,191,210.22
MEMBERS' EQUITY
Shares Outstanding                 6025 Shares
Dividend Per Share                     164.14
Notes:

these are the following adjustments for the merchandise inventory:

*first year- the beg. Balance is 30,000 and the business purchased merchandise amounted to 165,000. but it was able to sell merchandise
which amounted to 120,000. And so the remaining unsold merchandise amounted to 45,000

*second year- the beg. Balance is 45,000 which is the ending balance of the previous year . the business purchased merchandise
amounted to 200,000 . but it was able to sell merchandise which amounted to 190,000. And so the remaining unsold merchandise amounted to 55,000

*third year- the beg. Balance is 55,000 which is the ending balance of the previous year . the business purchased merchandise amounted to 300,000 .
but it was able to sell merchandise which amounted to 290,000. And so the remaining unsold merchandise amounted to 65,000

*fourth year- the beg. Balance is 65,000 which is the ending balance of the previous year . the business purchased merchandise amounted to 400,000 .
but it was able to sell merchandise which amounted to 390,000. And so the remaining unsold merchandise amounted to 75,000

*fifth year- the beg. Balance is 45,000 which is the ending balance of the previous year . the business purchased merchandise amounted to 500,000 .
but it was able to sell merchandise which amounted to 500,000. And so the remaining unsold merchandise amounted to 75,000

these are the following adjustments for the member's equity:

*first year- 25% of the subscribed capital has been paid amounted to 62,500. During its first year the college alumni have donated a small amount of money
which amounted to 15,000. it has also issued 625 shares which amounted to 62,500 and the 75% of the subscribed capital has been fully paid.

*second year- since the business has incurred loses during its first year of operation the remaining member's equity forwarded in the second year
amounted to 130, 462.24. However, it was able to issue 1,100 shares amounted to 110,000. thus, the member's equity increased. But unfortunately,
during the second year another loss has been incurred which decreased the member's equity.

*thirdyear- the member's equity forwarded during this year amounted to 207, 269.48. but it has been increased due to issuance of shares which
amounted to 100,000 and during this year The business was able to gain profit which amounted 9, 355.41.

*fourthyear- since the business was able to minimize its expenses and increased its sales and more customers are patronizing its products and services
The business was able to gain more profit which amounted to 460, 775.66

*fifthyear- again this year is the year of the BSMPC since it was able to maximize the utilization of its fixed assets. The busieness was able to generate
more income resulting to more profit which amounted to 1, 412, 809.67. because of this, the proponents have decided to declare dividends to its shareholders.

BSMPC
 COMPARATIVE STATEMENT OF CASH FLOWS
For the years 2010, 2011, 2012,2013,2014
2010 2011 2012 2013 2014
Cash Flows from Operating Activities                  
Sales from Merchandising 240,000.00 300,000.00   450,000.00   433,125.00   1,575,000.00  
Sales from Photocopying 132,000.00 165,000.00   247,500.00   787,500.00   742,500.00  
Cash Collection from Customers 4,500.00   7,000.00   10,000.00 1,230,625.00 10,000.00 2,327,500.00
372,000.00   469,500.00   704,500.00   1,230,625.00   2,327,500.00
Purchase of Merchandise -100,000.00 -100,000.00   -200,000.00   -250,000.00   -400,000.00  
Purchase of Office Supplies -35,000.00 -700.00   -10,000.00   -5,000.00   -15,000.00  
Rent Expense -36,000.00 -36,000.00   -36,000.00   -36,000.00   -36,000.00  
Utilities Expense -18,000.00 -18,780.00   -19,719.00   -20,704.95   -21,740.20  
Taxes & Licenses -12,000.00 -12,000.00   -12,000.00   -12,000.00   -12,000.00  
Interest on Loans & Payment of
-22,094.26 -22,094.26 -22,094.26 -22,094.26
Loans          
Amortization of Machineries -24,781.20 -24,781.20   -24,781.20          
Amortization of Desktop Computer -16,612.17 -16,612.17              
Transportation -12,000.00 -8,000.00   -8,000.00   -10,000.00   -20,000.00  
Honorarium -6,000.00 -6,000.00   -6,000.00   -6,000.00   -6,000.00  
Repairs & Maintenance -10,000.00 -8,000.00   -8,000.00   -8,000.00   -25,000.00  
Selling Expense -2,500.00 -1,000.00   -500.00   -1,000.00   -3,000.00  
General Assembly -5,000.00 -5,000.00   -5,000.00   -5,000.00   -5,000.00  
Salaries & Wages -211,444.80 -211,444.80   -211,444.80   -211,444.80   -211,444.80  
SSS Remittance -23,136.00 -23,136.00   -23,136.00   -23,136.00   -23,136.00  
PHIC Remittance -7,800.00 -7,800.00   -7,800.00   -7,800.00   -7,800.00  
Withholding Tax -14,256.00 -14,256.00   -14,256.00   -14,256.00   -14,256.00  
Payment of Accounts -75,000.00 -75,000.00   -99,000.00   -130,000.00   -200,000.00  
Net Cash Provided by(Used in) Oper.
Activities -259,624.43   -121,104.43   -3,231.26 -762,436.01 468,188.99 -1,000,377.00 1,327,123.00
Cash Flows from Investing Activities                
Furniture & Fixtures -13,700.00   0.00   0.00   0.00   0.00
Equipment - Stand Fan -4,000.00                
Equipment - Computer -5,000.00                
Machineries -16,000.00                
Net Cash Provided by(Used in) Invest.
Activities -38,700.00                
Cash Flows from Financing Activities                
Capital Stock Issued 312,500.00                
Donated Capital 15,000.00 110,000.00   100,000.00   50,000.00   30,000.00  
Bank Loan 18,000.00 18,000.00   18,000.00   18,000.00      
Net Cash Provided by(Used in) Fin.
Activities 345,500.00   128,000.00   118,000.00   68,000.00   30,000.00
Cash Balance at the beginning of the
period 0.00   47,175.57   54,071.14   168,839.88   705,028.87
Cash Balance at the end of the period 47,175.57   54,071.14   168,839.88   705,028.87   2,062,151.87
                     

BSMPC
 COMPARATIVE FINANCIAL RATIOS

For the years 2010, 2011, 2012,2013,2014

2010 2011 2012 2013 2014

LIQUIDITY                    

A Current Asset 99,675.57 110,396.14 236,664.88 783,353.87 2,142,076.87

Current Ratio = = 1.19 = 1.01 = 2.15 = 6.02 = 71.40
. Current
Liabilities 84,000.00 109,000.00 110,000.00 130,000.00 30,000.00
         
         
Current Assets 9,9675.57 110,396.14 236,664.88 783,353.87 2142076.87
B - Inventories -50,000 -55,700 -66,000 -76,000 -77500
Quick Ratio = = 0.59 = 0.50 = 1.55 = 5.44 = 68.81
. Current
Liabilities 84,000.00 109,000.00 110,000.00 130,000.00 30,000.00

                   

DEBT SERVICE                    
A
. Total Liabilities 84,000.00 109,000.00 110,000.00 130,000.00 30,000.00
= = 0.20 = 0.45 = 0.55 = 0.34 = 0.04
Debt to Net
Worth Total Equities 411,500.00 240,462.24 198269.48 387,624.89 748,400.55

                   

PROFITABILITY                    
A Net Income
. Net Profit After Tax -197,037.76 -142,192.76 9,355.41 460,775.66 1,412,809.67
= = -0.53 = -0.30 = 0.01 = 0.37 = 0.61
Margin
Sales 374,500.00 467,625.00 705,700.00 1,231,125.00 2,327,600.00
         
         
B Profit before
. Operating Profit interest & taxes -199,132.02 -144,287.02 11,449.66 462,869.92 1,412,809.67
= = -0.53 = -0.31 = 0.02 = 0.38 = 0.61
Margin
Sales 374,500.00 467,625.00 705,700.00 1,231,125.00 2,327,600.00
         
         
C
. Gross Profit -199,132.02 -144,287.02 11,449.66 462,869.92 1,412,809.67
= = -0.53 = -0.31 = 0.02 = 0.38 = 0.61
Gross Profit
Margin Sales 374,500.00 467,625.00 705,700.00 1,231,125.00 2,327,600.00
         
         
D
. Return on Net Income -197,037.76 -142,192.76 9,355.41 460,775.66 1,412,809.67
= = -0.60 = -0.59 = 0.05 = 1.19 = 1.89
Owners' Equity
Investment Stock Equity 327,500.00 240,462.24 198,269.48 387,624.89 748,400.55
          
         
E Profit before
. interest & taxes -199,132.02 -144,287.02 11,449.66 462,869.92 1,412,809.67
= = -1.73 = -1.49 = 0.14 = 7.12 = 28.75
Returnn on Net Total Tangible
Operating Profit Assets 114,786.67 96,873.34 80,960.01 65,046.68 49,133.35
         
         

F. Asset Turnover = Sales 374,500.00 = 467,625.00 = 705,700.00 = 1,231,125.00 = 2,327,600.00 =

3.26 4.83 8.72 18.93 47.37
Total Tangible
Asset 114,786.67 96,873.34 80,960.01 65,046.68 49,133.35
         
         
G
Return on
. Net Income -197,037.76 -142,192.76 9,355.41 460,775.66 1,412,809.67
Assets or = = -1.72 = -1.47 = 0.12 = 7.08 = 28.75
Earning Power Total Tangible
Asset 114,786.67 96,873.34 80,960.01 65,046.68 49,133.35

Notes:

* The current and Quick ratios of the proposed cooperative is increasing during its first five years of operations.This indicates that
the business has enough current assets to compensate its current liabilities. However, an increasing current and quick ratios also mean
that there are idle cash and redundant current assets in its operations.

* During the first two years of the business operations, its net opeating margin, operating profit margin, gross profit margina, return
on onwers' equity investment, return on net operating profit, and return on assets or earning power, show negative results indicating that
the income and sales generated by the business by utilizing its available assets are not enough to compensate its
expenses resulting to a loss. However, positive has been projected during the third, fourth, and fifth years.