Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
_________________________________________________________________

CHAPTER 8

FINANCIAL ASPECT

This chapter contains the financial aspect of the product such as; Capital Strategy, Sales

Forecast, Sources of Financing, Financial statement and also the financial analysis.

A. Capital Requirements and Strategies

B. Sales Forecast.

SALES
BUSINESS NAME QUANTITY AMOUNT DAILY WEEKLY MONTHLY ANNUALLY
Brewed coffee 31 ₱ 15.00 ₱ 465.00 ₱ 2,790.00 ₱ 11,160.00 ₱ 133,920.00
100.0 600.0 28,800.0
Café Americano 5 20.00 0 0 2,400.00 0
125.0 750.0 36,000.0
Espresso 5 25.00 0 0 3,000.00 0
700.0 4,200.0 201,600.0
Café Latte 28
25.00 0 0 16,800.00 0
100.0 600.0 28,800.0
Flat White 4
25.00 0 0 2,400.00 0
2,320.0 13,920.0 668,160.0
Dark Chocolate 29 80.00 0 0 55,680.00 0
2,250.0 13,500.0 648,000.0
Cappucino 45 50.00 0 0 54,000.00 0
2,075.0 12,450.0 597,600.0
Iced tea 83 25.00 0 0 49,800.00 0
TOTAL 230   ₱ 8,135.00 ₱ 48,810.00 ₱ 195,240.00 ₱ 2,342,880.00
 Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
_________________________________________________________________

C. Sources of Financing

D. Financial Statements

Projected Comprehensive Income

UNIVERSITY BREW

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR 2022 TO 2026

ACCOUNT TITLES YEAR

  2022 2023 2024 2025 2026

Sales ₱ 2,342,880.00 ₱ 2,577,168.00 ₱ 2,834,884.80 ₱ 3,118,373.28 ₱ 3,430,210.61

Cost of sales 1,279,071.36 1,406,978.50 1,547,676.35 1,702,443.98 1,872,688.38

Gross Profit 1,063,808.64 1,170,189.50 1,287,208.45 1,415,929.30 1,557,522.23

LESS: EXPENSES          

Overhead Expense 242,400.00 266,640.00 293,304.00 322,634.40 354,897.84

Utilities Expenses 32,400.00 35,640.00 39,204.00 43,124.40 47,436.84

Administrative Expenses 510,000.00 561,000.00 617,100.00 678,810.00 746,691.00

Fringe Benefits 58,297.50 64,127.25 70,539.98 77,593.97 85,353.37

Licenses   4,245.00 4,669.50 5,136.45 5,650.10

Pre-operating expense 4,245.00        

Depreciation Expenses 29,001.73 29,001.73 29,001.73 29,001.73 29,001.73

Net income ₱ 187,464.41 ₱ 209,535.53 ₱ 233,389.25 ₱ 259,628.35 ₱ 288,491.36

 Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
_________________________________________________________________

Projected Cash Flow

UNIVERSITY BREW
CASH FLOW
FOR THE FIVE YEAR PERIOD JANUARY 2022- DECEMBER 2026
Cash Flow from
Operating Activities Year
  1 2 3 4 5
Cash Inflows:          
Cash Received from
Customer ₱ 2,342,880.00 ₱ 2,577,168.00 ₱ 2,834,884.80 ₱ 3,118,373.28 ₱ 3,430,210.61
Cash Out Flows:          
1,279,071.3 1,406,978.5 1,547,676.3 1,702,443.9 1,872,688.3
Cost of sales 6 0 5 8 8
4,245.0
Pre-Operating Expenses 0        
4,245.0 4,669.5 5,136.4 5,650.1
Licenses   0 0 5 0
242,400.0 266,640.0 293,304.0 322,634.4 354,897.8
Overhead expenses 0 0 0 0 4

Utilities Expenses 32,400.00 35,640.00 39,204.00 43,124.40 47,436.84

510,000.0 561,000.0 617,100.0 678,810.0 746,691.0
Administrative Expenses 0 0 0 0 0
58,297.5 64,127.2 70,539.9 77,593.9 85,353.3
Fringe Benefits 0 5 8 7 7
2,126,413.8 2,338,630.7 2,572,493.8 2,829,743.2 3,112,717.5
Total Cash Outflow: 6 5 2 0 2
Net Cash Flow from 216,466.1 238,537.2 262,390.9 288,630.0 317,493.0
Operating Activities 4 5 8 8 9
Cash Flow from Investing
Activities          
473,683.1
Renovation 4        
10,544.0
Machineries and Equipment 0        
180,000.0
Furniture and Fixture 0        
4,951.0
Production tools 0        
Net Cash Flow from 669,178.1
Investing Activity 4        
Cash Flow from Financing
Activities          
1,000,000.0
Owner's Capital 0        
Net Cash Flow from 1,000,000.0
Financing Activity 0        
547,288.0 238,537.2 262,390.9 288,630.0 317,493.0
Net Changes in Cash 0 5 8 8 9
547,288.0 785,825.2 1,048,216.2 1,336,846.3
Add:
Cash, Beginning   0 5 3 1
 Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
_________________________________________________________________

Total Cash Flow Activities ₱ 547,288.00 ₱ 785,825.25 ₱ 1,048,216.23 ₱ 1,336,846.31 ₱ 1,654,339.40

 Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
_________________________________________________________________

Projected Balance Sheet

UNIVERSITY BREW
STATEMENT OF FINACIAL POSITION
AS OF JANUARY TO DECEMBER 2022
Year
Account Titles 1 2 3 4 5
Assets          
Current Asset  
Cash ₱ 547,288.00 ₱ 785,825.25 ₱ 1,048,216.23 ₱ 1,336,846.31 ₱ 1,654,339.40
Non-Current Asset  
473,683.1 454,735.8 435,788.4 416,841.1 397,893.8
Renovation 4 1 9 6 4
18,947.3 18,947.3 18,947.3 18,947.3 18,947.3
less: Accum. Dept. 3 3 3 3 3
454,735.8 435,788.4 416,841.1 397,893.8 378,946.5
Net 1 9 6 4 1
Machineries and 10,544.0 9,489.6 8,435.2 7,380.8 6,326.4
Equipment 0 0 0 0 0
1,054.4 1,054.4 1,054.4 1,054.4 1,054.4
less: Accum. Dept. 0 0 0 0 0
9,489.6 8,435.2 7,380.8 6,326.4 5,272.0
Net 0 0 0 0 0
Furniture and Fixture 180,000.0 171,000.0 162,000.0 153,000.0 144,000.0
0 0 0 0 0
9,000.0 9,000.0 9,000.0 9,000.0 9,000.0
less: Accum. Dept. 0 0 0 0 0
171,000.0 162,000.0 153,000.0 144,000.0 135,000.0
Net 0 0 0 0 0
4,951.0 4,951.0 4,951.0 4,951.0 4,951.0
Production tools 0 0 0 0 0
Total Non-current 640,176.4 611,174.6 582,172.9 553,171.2 524,169.5
Asset 1 9 6 4 1
Total Asset ₱ 1,187,464.41 ₱ 1,396,999.94 ₱ 1,630,389.20 ₱ 1,890,017.55 ₱ 2,178,508.91
Owner's, Beginning
Capital ₱ 1,000,000.00 ₱ 1,187,464.41 ₱ 1,396,999.94 ₱ 1,630,389.20 ₱ 1,890,017.55
Net Income 187,464.4 209,535.5 233,389.2 259,628.3 288,491.3
1 3 5 5 6
Total Liabilities and
Owner’s Equity ₱ 1,187,464.41 ₱ 1,396,999.94 ₱ 1,630,389.20 ₱ 1,890,017.55 ₱ 2,178,508.91

           
 Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
_________________________________________________________________

Financial Analysis
Financial Ratios

Gross Profit Margin Gross Profit/Sales

Year Gross Profit Sales Income Gross Profit Margin
1 ₱ 1,063,808.64 ₱ 2,342,880.00 45.41%
2 1,170,189.50 2,577,168.00 45.41%
3 1,287,208.45 2,834,884.80 45.41%
4 1,415,929.30 3,118,373.28 45.41%
5 1,557,522.23 3,118,373.28 49.95%
TOTA
L ₱ 6,494,658.13 ₱ 13,991,679.36 46.42%

Net Profit Margin Net Income/Sales

Year Net Income Sales Income Net Profit Margin
1 ₱ 187,464.41 ₱ 2,342,880.00 8.00%
2 209,535.53 2,577,168.00 8.13%
3 233,389.25 2,834,884.80 8.23%
4 259,628.35 3,118,373.28 8.33%
5 288,491.36 3,118,373.28 9.25%
TOTA
L ₱ 1,178,508.91 ₱ 13,991,679.36 8.42%

Return on Equity Net Income/Partner's Equity

Year Net Income Partner's Equity Return on Equity
1 ₱ 187,464.41 ₱ 787,464.41 23.81%
2 209,535.53 996,999.94 21.02%
3 233,389.25 1,230,389.20 18.97%
4 259,628.35 1,490,017.55 17.42%
5 288,491.36 1,778,508.91 16.22%
TOTA
L ₱ 1,178,508.91 ₱ 6,283,380.01 18.76%
 Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
_________________________________________________________________

Return of Investment Net Income /Total Asset

Year Net Income Total Asset ROI
₱ ₱ 15.7
1 187,464.41 1,187,464.41 9
15.0
2 209,535.53 1,396,999.94 0
14.3
3 233,389.25 1,630,389.20 1
13.7
4 259,628.35 1,890,017.55 4
13.2
5 288,491.36 2,178,508.91 4
TOTA ₱ ₱ 14.2
L 1,178,508.91 8,283,380.01 3

Liquidity ratios
Since the business has no projected Liability we can’t compute the liquidity ratios per
formulas.
Breakeven Analysis

Breakeven Point Total Fixed Cost/Gross Profit Margin %

Gross Profit
Year Total Fixed Cost Margin Breakeven Point
₱ ₱
1 640,176.41 45.41% 1,409,893.15

2 611,174.69 45.41% 1,346,021.17

3 582,172.96 45.41% 1,282,149.20

4 553,171.24 45.41% 1,218,277.22

5 524,169.51 49.95% 1,049,459.31

TOTA ₱
L 582,172.96 46.42% 1,254,196.49
 Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
_________________________________________________________________