THE FINANCIAL ASPECT

Objectives of the Financial Aspect

This presents a detailed list of objectives relating to assumptions for projected financial statements,
project capital investment, sources of capital, financial projections, and ratio analysis, etc.

 Objective 1;

 Objective 2;

 Objective 3.

In the succeeding paragraphs, there should be no indentations, paragraphs are justified with left
alignment. Delete this highlighted section and replace it with your own objectives.

Statement of Assumptions

First Name Last Name Contact No.

Karl
Dwight Sales

Alton Anonat

Arrogante Romela

Espacio Miracle

Labto Jhay Frances

Sanao Kela Marie

Net Income: 199,466.78 2,333,534.78 2,517,588.86 2,710,845.65 2,913,765.27
Partners: 6 6 6 6 6
Net Income
perStart
Partner:
Up Cost 33,244.46 388,922.46 419,598.14 451,807.61 485,627.55
Cash and CashStarting
equivalents 2,596,503.00
Land Capital 2023 2024
600,000.00 2025 2026 2027
Sales, Karl Expenses
Prepaid
Dwight
PermitsEquity 1,000,000.00 1,033,244.46
and Licenses 1,422,166.93
11,015.00 1,841,765.07 2,293,572.68 2,779,200.23
Anonat, Alton
Property, Plant and Equipment 1,115,928.00
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23
Inventory 1,676,554.00
Romela,
Arrogante
Other possible expenses
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23
Total 6,000,000.00
Miracle,
Espacio Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23
Jhay Frances,
Labto Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23
Kela Marie,
Sanao Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23
Drawings, Sales
Drawings,
Anonat
Drawings,
Romela
Drawings,
Miracle
Drawings, Jhay
Frances
Drawings, Kela
Marie
Total Owner's
Equity 6,000,000.00 6,199,466.78 8,533,001.57 11,050,590.43 13,761,436.08 16,675,201.35
Changes in Owner's Equity

Sales, Karl
Dwight
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Anonat,
Alton
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Romela,
Arrogant
e Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Miracle,
Espacio
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Jhay
Frances,
Labto
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Kela
Marie,
Sanao
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Total
Owner's 6,199,466.7
Equity 6,000,000.00 8 8,533,001.57 11,050,590.43 13,761,436.08 16,675,201.35

Notes 1- Cash and Cash

Equivalent
Cash on Hand 2,596,503.00
Cash in Bank
Petty Cash
Total Cash and Cash Equivalent 2,596,503.00
Notes 3- Inventory Quantity Price Total

B-MEG PREMIUM PRE STARTER HOG PELLET 25KG 30.00 1,584.00 47,520.00

35 day’s piglet 300.00 3,500.00 1,050,000.00

B-MEG PREMIUM STARTER HOG PELLET 50KG 72.00 2,119.00 152,568.00

B-MEG PREMIUM HOGGROWER 1 PELLET 50KG 154.00 2,109.00 324,786.00

B-MEG PREMIUM HOG FINISHER PELLET 50.00 1,898.00 94,900.00

LATIGO 1000 3.00 550.00 1,650.00

VETRACIN GOLD 3.00 860.00 2,580.00

COGLAPEST 5.00 214.00 1,070.00

BEXAN SP 2.00 740.00 1,480.00

Item 10 -

Item 11 -

Item 12 -

Item 13 -

Item 14 -

Item 15 -

Item 16 -

Total Inventory 1,676,554.00

Note 5- Property,
Plant and Useful Salvage Annual
Equipment Price Quantity Years Total Value Value Depreciation

Computer 20,000.00 1.00 10 20,000.00 2,000.00 1,800.00

Electric Stand Fan 1,700.00 3.00 10 5,100.00 510.00 459.00

HP Printer 15,000.00 1.00 10 15,000.00 1,500.00 1,350.00

Uratex Plastic Chair 420.00 6.00 10 2,520.00 252.00 226.80

Office Desk 5,000.00 1.00 10 5,000.00 500.00 450.00

CCTV 500.00 4.00 10 2,000.00 200.00 180.00

Truck (FOTON) 915,000.00 1 10 915,000.00 91,500.00 82,350.00

Industrial motor
and hose w/ Water
tank 48,154.00 2 10 96,308.00 9,630.80 8,667.72

Standard digital hog

scale 55,000.00 1 10 55,000.00 5,500.00 4,950.00

Total Property, Plant and Equipment 1,115,928.00 100,433.52

Depreciation Schedule 2023 2024 2025 2026 2027

Computer 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00

Accumulated Depreciation-
Computer 1,800.00 3,600.00 5,400.00 7,200.00 9,000.00

Electric Stand Fan 5,100.00 5,100.00 5,100.00 5,100.00 5,100.00

Accumulated Depreciation-
Electric Stand Fan 459.00 918.00 1,377.00 1,836.00 2,295.00

HP Printer 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00

Accumulated Depreciation- HP
Printer 1,350.00 2,700.00 4,050.00 5,400.00 6,750.00

Uratex Plastic Chair 2,520.00 2,520.00 2,520.00 2,520.00 2,520.00

Accumulated Depreciation-
Uratex Plastic Chair 226.80 453.60 680.40 907.20 1,134.00

Office Desk 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Accumulated Depreciation-
Office Desk 450.00 900.00 1,350.00 1,800.00 2,250.00

CCTV 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00

Accumulated Depreciation-
CCTV 180.00 360.00 540.00 720.00 900.00

Truck (FOTON) 915,000.00 915,000.00 915,000.00 915,000.00 915,000.00

Accumulated Depreciation-
Truck (FOTON) 82,350.00 164,700.00 247,050.00 329,400.00 411,750.00

Industrial motor and hose w/

Water tank 96,308.00 96,308.00 96,308.00 96,308.00 96,308.00

Accumulated Depreciation-
Industrial motor and hose w/
Water tank 8,667.72 17,335.44 26,003.16 34,670.88 43,338.60

Standard digital hog scale 55,000.00 55,000.00 55,000.00 55,000.00 55,000.00

Accumulated Depreciation-
Standard digital hog scale 4,950.00 9,900.00 14,850.00 19,800.00 24,750.00

Total Property Plant and

Equipment 1,015,494.48 915,060.96 814,627.44 714,193.92 613,760.40

Note 6- Permits and

Licenses

SEC Registration 5,000.00 1,000.00

BIR Registration Renewal 500.00 500.00

Mayor's Permit 2,000.00 -

DTI 500.00 500.00

FDA Permit 1,515.00 2,500.00

Sanitary Permit 1,000.00 1,000.00

DOLE Registration 500.00 500.00

Total 11,015.00 6,000.00

Note 7- Supplies Quantity Price Total

Folders 10.00 10.00 100.00

File Folders 5.00 100.00 500.00

Ball pen 2.00 95.00 190.00

Calculator 1.00 320.00 320.00

Stapler 4.00 90.00 360.00

Carbonless Copy
paper 2.00 30.00 60.00

Puncher 4.00 45.00 180.00

Total 1,710.00
Note 8-
Salaries
Expense

ER
Basic Share
Salary Basic Basic 13th Total
Position (Daily) Salary Salary SSS Pag-Ibig Philhealth month Monthly Quantity Total

Caretaker 15,000.0 180,000.0 15,000.0

500.00 0 0 8,370.00 2,400.00 8,346.00 0 1,693.00 3.00 585,000.00

Driver 15,000.0 180,000.0 15,000.0

500.00 0 0 8,370.00 2,400.00 8,346.00 0 1,693.00 195,000.00

Marketing 15,000.0 180,000.0 15,000.0

clerk 500.00 0 0 8,370.00 2,400.00 8,346.00 0 1,693.00 195,000.00

Accounting 15,000.0 180,000.0 15,000.0

clerk 500.00 0 0 8,370.00 2,400.00 8,346.00 0 1,693.00 195,000.00

Total 6,772.00 1,170,000.00

Note 9- Utilities Expense Monthly Annual

15,000.0
Ceneco 0 180,000.00

10,000.0
Prime Waters 0 120,000.00

Gas Expense 6,000.00 72,000.00

Truck Maintenance 2,000.00 24,000.00

 TOTAL 396,000.00

Balance Sheet for the Year Ending 2023 to 2027

Beginning 2023 2024 2025 2026 2027

Assets

Current Assets:

Cash and Cash

Equivalent 2,596,503.00 2,896,403.30 5,330,371.61 7,948,393.99 10,759,673.16 13,773,871.95

Prepaid
Expenses - - - - - -

Inventory 1,676,554.00 1,676,554.00 1,676,554.00 1,676,554.00 1,676,554.00 1,676,554.00

Accounts
Receivable

Total Current
Assets: 4,273,057.00 4,572,957.30 7,006,925.61 9,624,947.99 12,436,227.16 15,450,425.95

Non Current
Assets:

Property, Plant
and Equipment 1,115,928.00 1,015,494.48 915,060.96 814,627.44 714,193.92 613,760.40

Land 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00

Permits and
Licenses 11,015.00 11,015.00 11,015.00 11,015.00 11,015.00 11,015.00

Total Non 1,726,943.00 1,626,509.48 1,526,075.96 1,425,642.44 1,325,208.92 1,224,775.40

Current Assets:
Total Assets: 6,000,000.00 6,199,466.78 8,533,001.57 11,050,590.43 13,761,436.08 16,675,201.35

Liability and
Equity

Current
Liabilities:

Accounts
Payable

Total Liabilities - - - - - -

Owner's Equity

Sales, Karl
Dwight Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Anonat, Alton
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Romela,
Arrogante
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Miracle, Espacio
Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Jhay Frances,
Labto Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Kela Marie,
Sanao Equity 1,000,000.00 1,033,244.46 1,422,166.93 1,841,765.07 2,293,572.68 2,779,200.23

Total Owner's
Equity 6,000,000.00 6,199,466.78 8,533,001.57 11,050,590.43 13,761,436.08 16,675,201.35

Total Liabilities
and Owner's
Equity 6,000,000.00 6,199,466.78 8,533,001.57 11,050,590.43 13,761,436.08 16,675,201.35
Statement of Cash Flow

Adjustments:

Depreciation
Expense 100,433.52 100,433.52 100,433.52 100,433.52 100,433.52

Increase(Decrease
) in Accounts
Receivable

Increase(Decrease
) in Accounts
Payable

Net Cash Flow

from Operating 2,433,968.3 2,618,022.3
Activities - 299,900.30 0 8 2,811,279.17 3,014,198.79

Cash Flows from

Investing
Activities:

Net Cash Flow

from Investing
Activities - - - - - -

Cash Flows from

Financing
Activities:

Net Cash Flow

from Financing
Activities - - - - - -
Total Cash 2,433,968.3 2,618,022.3
Inflow/Outflow - 299,900.30 0 8 2,811,279.17 3,014,198.79

Beginning Cash of 2,596,503.0 2,596,503.0 2,896,403.3 5,330,371.6 10,759,673.1

the Year 0 0 0 1 7,948,393.99 6

Cash at the End 2,596,503.0 2,896,403.3 5,330,371.6 7,948,393.9 10,759,673.1 13,773,871.9

of the Year 0 0 1 9 6 5

Cost of Goods Sold

# of Business Days: 26

No. Menu Price Kg Sold Monthly Annually

1 Name of Service/Product 122.07 8,000.00 976,554.00 11,718,648.00

Total 976,554.00 11,718,648.00

Sales

No
. Menu Price Quantity Sold Monthly Annually

1 Name of Service/Product 170.00 8,000.00 1,360,000.00 16,320,000.00

Total 1,360,000.00 16,320,000.00

Business Type: Food Pieces

Live Hogs

HOGS produced by batches of 100 100

Ingredients: Price Quantity Total

B-MEG PREMIUM PRE STARTER HOG PELLET 25KG 1,584.00 30.00 47,520.00

35 day’s piglet 3,500.00 100.00 350,000.00

B-MEG PREMIUM STARTER HOG PELLET 50KG 2,119.00 72.00 152,568.00

B-MEG PREMIUM HOGGROWER 1 PELLET 50KG 2,109.00 154.00 324,786.00

B-MEG PREMIUM HOG FINISHER PELLET 1,898.00 50.00 94,900.00

LATIGO 1000 550.00 3.00 1,650.00

VETRACIN GOLD 860.00 3.00 2,580.00

COGLAPEST 214.00 5.00 1,070.00

BEXAN SP 740.00 2.00 1,480.00

Total Batch Cost 976,554.00

Average Total Weight of 100 Grown Piglets 8000

Cost per Kilogram 122.07

Tabang Taba

For the Year Ending 2023 to 2027

2023 2024 2025 2026 2027

Sales 12,240,000.00 16,320,000.00 17,136,000.00 17,992,800.00 18,892,440.00

Less:Cost of
Goods Sold 8,788,986.00 11,718,648.00 12,304,580.40 12,919,809.42 13,565,799.89

Gross Profit 3,451,014.00 4,601,352.00 4,831,419.60 5,072,990.58 5,326,640.11

Less: Operating
Expense

Salaries Expense 1,170,000.00 1,170,000.00 1,170,000.00 1,170,000.00 1,170,000.00

Utilities Expense 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00

Supplies Expense 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00

Depreciation
Expense 100,433.52 100,433.52 100,433.52 100,433.52 100,433.52

Building Expense 1,512,232.00

Licenses 11,015.00 6,000.00 6,000.00 6,000.00 6,000.00

Earnings Before
Taxes 249,333.48 2,916,918.48 3,146,986.08 3,388,557.06 3,642,206.59

Tax 49,866.70 583,383.70 629,397.22 677,711.41 728,441.32

Net Income ₱199,466.78 ₱2,333,534.78 ₱2,517,588.86 ₱2,710,845.65 ₱2,913,765.27

 As for the whole business

Cash inflows/outflows Collected Payback Payback Period

2023, Beginning -₱6,000,000.00 ₱6,000,000.00

2023 2,333,534.78 -3,666,465.22 1

2024 2,517,588.86 -1,148,876.35 1

2025 2,710,845.65 1,561,969.30 0.42

2026 2,913,765.27 4,475,734.57

2027 ₱4,475,734.57

Payback Period 2 years and 0.42 months

Net Income 199,466.78 2,333,534.78 2,517,588.86 2,710,845.65 2,913,765.27

Sales 12,240,000.00 16,320,000.00 17,136,000.00 17,992,800.00 18,892,440.00

Total Assets 6,199,466.78 8,533,001.57 11,050,590.43 13,761,436.08 16,675,201.35

Current Assets 4,572,957.30 7,006,925.61 9,624,947.99 12,436,227.16 15,450,425.95

Fixed Assets 1,615,494.48 1,615,494.48 1,615,494.48 1,615,494.48 1,615,494.48

Equity 6,199,466.78 8,533,001.57 11,050,590.43 13,761,436.08 16,675,201.35

Net Sales 3,451,014.00 4,601,352.00 4,831,419.60 5,072,990.58 5,326,640.11

Net Fixed Assets 1,615,494.48 1,515,060.96 1,414,627.44 1,314,193.92 1,213,760.40

Current Liabilities 1.00 1.00 1.00 1.00 1.00

Total Liabilities 1.00 1.00 1.00 1.00 1.00

A. Profitability
Ratios 2023 2024 2025 2026 2027

1. Net Profit
Margin 5.78% 50.71% 52.11% 53.44% 54.70%

2. Return on Total
Assets 3% 27% 23% 20% 17%

3. Return on
Current Assets 4.36% 33.30% 26.16% 21.80% 18.86%

3. Return on
Fixed Assets 12.35% 144.45% 155.84% 167.80% 180.36%

4. Return on
Equity 3.22% 27.35% 22.78% 19.70% 17.47%

5. Gross Profit
Margin 28.19% 28.19% 28.19% 28.19% 28.19%

B. Liquidity
Ratios

1. Current Ratio 4,572,957x 7,006,926x 9,624,948x 12,436,227x 15,450,426x

2. Cash Ratio 2,596,503x 2,896,403x 5,330,372x 7,948,394x 10,759,673x

C. Asset
Management

1. Fixed Assets
Turnover 7.58x 10.77x 12.11x 13.69x 15.57x

2. Total Assets
Turnover 1.97x 1.91x 1.55x 1.31x 1.13x

3. Inventory
Turnover 5.24x 6.99x 7.34x 7.71x 8.09x

4. Days Sales
Inventory 69.63x 52.22x 49.73x 47.36x 45.11x

D. Debt
Management

1. Debt Ratio 0.00 0.00 0.00 0.00 0.00

2. Equity Ratio 1.00 1.00 1.00 1.00 1.00

3. Debt-to-capital
Ratio 0.00 0.00 0.00 0.00 0.00

4. Debt-to-equity
Ratio 0.00 0.00 0.00 0.00 0.00

5. Equity-to-debt
Ratio 6,199,467x 8,533,002x 11,050,590x 13,761,436x 16,675,201x

Analysis:
The business generated 81.07% on the first year and fell to 79.66% on the second year which
can be directly attributable to the increase in operating expenses, particularly on the company's
expenses. While on the third to fifth year, the business has already coped up with the change.
It can be seen that it is profitable when the business is related to its asset. Hence, it can be
deduced that the business utilizes its assets efficiently thus giving the business a good
percentage of profit per peso of asset.
During the first year, the business earns P1.56 per P1 of current asset. Meanwhile, the decrease
in the subsequent years are caused by the increase in cash in the current assets. This was
addresed by purchasing a piece of land as an investment and also to maximize the use of the
excess cash.
During the first year, the business earns P12 per P1 of noncurrent assets. Over the years, there
was no additional investment in PPE. This signifies the income produced for each unit of net
fixed assets, reflecting the effective use of resources by the business to generate revenue.
In this ratio, every P1 of equity received by the business, they generated P3.22-P27.35 of profit.
The different shifts in the ROE over the years is due to the different activities the business takes
on every year.
The business generated 28.19% of gross profit and it is important to note that while the cost of
goods increased in subsequent years due to the increasing inflation rate per year, the business
also increased the market price of its products to counter the increase in cost.

The company operated without incurring any debt, and it has no intentions of obtaining loans
unless deemed necessary.
The company operated without incurring any debt, and it has no intentions of obtaining loans
unless deemed necessary.

The company operated without incurring any debt, and it has no intentions of obtaining loans
unless deemed necessary.
This shows the sales produced per peso of total assets. The turnover decreases every year due
to the increase of assets through its net income annually and since there is no additional assets
purchased, it will continue to decrease unless otherwise.
The company sold and replaced its inventory 2.16 times. This metric reflects how efficiently the
business manages its inventory
This implies that the company typically takes 45-70 days to transform its inventory of grown
hogs into sales. While a lower value usually suggests more efficient inventory management and
sales operations, it's important to note that, given the nature of a piggery business, a longer
duration is expected.

The company operated without incurring any debt, and it has no intentions of obtaining loans
unless deemed necessary.
The company operated without incurring any debt, and it has no intentions of obtaining loans
unless deemed necessary.
The company operated without incurring any debt, and it has no intentions of obtaining loans
unless deemed necessary.
The company operated without incurring any debt, and it has no intentions of obtaining loans
unless deemed necessary.
This ratio is the number of times the business can pay off all of its debts using its equity.