StrEATfoordables

START-UP COSTS

Particular Amount Reference

BUSINESS REGISTRATION 2,900
Business permits, licenses and registrations 2,900 Schedule A
CAPITAL EXPENDITURES 7,023
Machines and Equipment 2,931 Schedule B
Furniture and Fixtures 400 Schedule C
Technological Expenses 2,748 Schedule D
Tools and Accessories Expenses 944 Schedule E
OTHER PRE-OPERATING EXPENSES 2,500
Lease/Rent Deposit 500 Schedule F
Advance Lease/Rent 1,500 Schedule F
Renovation and site improvement 500 Schedule G

Total Start-Up Costs 12,423

CAPITALIZATION

Particular Amount Reference

Contribution from the owner 15,000
Proceeds from Loan 10,000
Total Capitalization 25,000
StrEATfoordables
BUSINESS REGISTRATION

DTI registration of business name for sole proprietorship 2%

- Barangay, P200 Description Year 1 Year 2
Bank certificate of deposit
- City/Municipality, P500
-- Maybank, P200
Regional, P1,000 ₱ 200
- National,Tax
Community P2,000
Certificate (CTC) ₱ 500
Mayor's
- CTC,Permit
P500
Barangay
-- Sanitary Clearance
permit, ₱ 500 ₱ 510
-- Assessed
minimum, value ofP900
real property, P2 for every P5,000
License fee,P500
0.2% of capital
-- Barangay clearance
Retail permit plate, P300
fee, P2,000 ₱ 800 ₱ 816
- Garbage collection fee, P2,500 ₱ 900 ₱ 918
Total Business Registration Fees ₱ 2,900 ₱ 2,244

Capital 25,000
 3% 4% 5%
Year 3 Year 4 Year 5

₱ 525 ₱ 546 ₱ 574

₱ 840 ₱ 874 ₱ 918
₱ 946 ₱ 983 ₱ 1,033
₱ 2,311 ₱ 2,404 ₱ 2,524
MANPOWER COST
Year 1-5 No increase in basic salary for 5 years
5.0%
Monthly Provident
Position Pax SSS-ER EC-ER Philhealth
Salary Fund
General Manager 1 15,208 1,275 30 - 380
Sales Assistant 1 9,125 850 10 - 228
Totals 2 24,333 2,125 40 - 608
Year 1-5 Totals 292,000 25,500 480 - 7,300
 4.0%
Pag-Ibig
304
183
487
5,840
MINIMUM WAGE RATE
SSS Table
PHILHEALTH
PAG-IBIG
Loan Amortization Schedule
https://www.vertex42.com/ExcelTemplates/loan-amortization-schedule.html © 2008-2023 Vertex42 LLC

Loan Information Summary About This Worksheet

Loan Amount 10,000.00 Rate (per period) 1.467% This spreadsheet creates an amortization
schedule for a fixed-rate loan, with optional
Annual Interest Rate 6.00% Scheduled # of Payments 16
extra payments. See the Help worksheet for
Term of Loan in Years 4 Actual # of Payments 16 more details. Edit cells within the gray
First Payment Date 6/30/2022 Total Payments ### borders. This spreadsheet uses worksheet
protection to prevent accidental changes to
Payment Frequency Quarterly Total Interest 1,292.68
formulas.
Compound Period Annual Est. Interest Savings -
Payment Type End of Period .
Rounding On .
[42]

Quarterly Payment 705.79

Amortization Schedule
Annual Annual
Due Payment Additional
No. Interest Interest Principal Principal Balance
Date Due Payment
Expense Paid
1 6/30/22 705.79 146.74 559.05 9,440.95
2 9/30/22 705.79 138.54 567.25 8,873.70
537.26 2,285.90
3 12/30/22 705.79 130.21 575.58 8,298.12
4 3/30/23 705.79 121.77 584.02 7,714.10 Purchase the Commercial Version
5 6/30/23 705.79 113.20 592.59 7,121.51
6 9/30/23 705.79 104.50 601.29 6,520.22
400.10 2,423.06
7 12/30/23 705.79 95.68 610.11 5,910.11
8 3/30/24 705.79 86.72 619.07 5,291.04
9 6/30/24 705.79 77.64 628.15 4,662.89
10 9/30/24 705.79 68.42 637.37 4,025.52
254.71 2,568.45
11 12/30/24 705.79 59.07 646.72 3,378.80
12 3/30/25 705.79 49.58 656.21 2,722.59
13 6/30/25 705.79 39.95 665.84 2,056.75
14 9/30/25 705.79 30.18 675.61 1,381.14
100.61 2,722.59
15 12/30/25 705.79 20.27 685.52 695.62
16 3/30/26 705.83 10.21 695.62 0.00

0.00 0.00
End
Example 1: Retail - Cost of purchasing
rchasing
100
pcs
pcs
ofof
Product
Product
Kwek-kwek
Alpha is P7,500
is P

To get cost price per unit: Purchase price 75.00

divided by total units 30.00
Cost price per item 2.50

To get selling price: Cost price per item 2.50

plus mark up 100%
Selling price 10.00

Benchmarked price 12.00

Example 2: Manufacturing - Cost and pricing for manufacturing a furniture (dining table w/ 4 chairs)

To get cost price per unit: Raw material (wood, leather) 1,000.00
Labor 570.00
Total Cost 1,570.00
To get selling price: plus mark up 1,884.00
Selling price 3,500.00

To get hourly rate: Daily minimum wage 570.00

divided by hours per day 8.00
Hourly rate 71.25

Benchmark 8,000.00

Example 3: Service - Cost and pricing for a hair salon

To get cost price per unit: Materials (hair dye)

Labor
Total Cost
To get selling price: plus mark up
Selling price

Benchmark
 mark up

e (dining table w/ 4 chairs)

8 hours x hourly rate

120%

2 hours x hourly rate

100%
Costing and Pricing
Materials
Type of Service Product Labor
Details Cost Duration Cost
Kwek-kwek 1/2 flour, 55 pcs quail eggs and 90.00
bamboo sticks
Fishball Fishball 1 kg per pack 75.00

Kikiam Kikiam 250 grams, 2 packs 70.00

Chicken Skin Nuggets Chicken Skin 1/2 kg, 1/2 flour and 90.00
Bamboo sticks
Fried Isaw Chicken Isaw 1/2 kg, 1/2 flour and 70.00
Bamboo sticks
Hotdog Bossing Hotdog Jumbo 30pcs 1kg. 175.00

Fried Siomai Beef siomai 60pcs per pack 240.00

Determine Capacity of the business

Capacity = 30 products x 8 hours = 240 sales hours/day
MOnthly Capacity = 240 sales hrs/day x 26 days = 6240 sales hrs/mo

Sales Projection - Monthly

No. of Montly
Type of Service services per SRP
Sales
month

Kwek-kwek 910 10.00 9,100.00

Fishball 910 5.00 4,550.00

Kikiam 910 5.00 4,550.00

Chicken Skin Nuggets 910 10.00 9,100.00

Fried Isaw 910 5.00 4,550.00

Hotdog 780 10.00 7,800.00

Fried Siomai 624 20.00 12,480.00

Monthly totals 5954 65.00 52,130.00

Daily average 229.00 2,005.00

Annual Projection
 Total
Cost per SRP Benchmark
order/piece
2.57 10.00 12.00

2.14 5.00 5.00

2.00 5.00 5.00

2.57 10.00 12.00

2.00 5.00 6.00

5.83 10.00 12.00

10.00 20.00 20.00

100% 75% 50%

Max Mid Min
240 180 120
6,240 4,680 3,120

Monthly Monthly
COS Gross Income

2,340.00 6,760.00

1,950.00 2,600.00

1,820.00 2,730.00

2,340.00 6,760.00

1,820.00 2,730.00
 4,550.00 3,250.00

6,240.00 6,240.00

21,060.00 31,070.00
810.00 1,195.00

625,560.00 252,720.00 372,840.00

SUMMARY OF CAPITAL EXPENDITURES

Schedule B - Machines & Equipment

Price
MACHINES AND EQUIPMENT No. of units Amount
per unit

Single Burner Gas Stove 1 665 665

Gas Tank 1 1,699 1,699
Frying Pan (wok pan) 1 379 379
Sauce Pan 1 99 99
Stainless Mixing Bowl 1 89 89
Total Machines and Equipment 2,931

Schedule C - Furniture & Fixtures

Price
FURNITURE & FIXTURES No. of units Amount
per unit

Table 1 300 300

Chairs 2 50 100
Total Furniture and Fixtures 400

Schedule D - Technology
Price
TECHNOLOGY No. of units per unit Amount

Mobile phone 1 2,699 2,699

Dito Sim 1 49 49
Total Technology Expenses 2,748

Schedule E - Tools & Supplies

Price
TOOLS & SUPPLIES No. of units Amount
per unit

Tongs 2 40 80
Knife 2 35 70
Stainless Steel Strainer 1 100 100
Stainless Tray Food Container 7 50 350
Disposable Paper Plate Silver 1 40 40
Disposable Plastic Cups 16oz 1 38 38
Disposable Plastic Cups 12oz 1 26 26
100 pcs BBQ Sticks 1 20 20
Chopping Board 1 30 30
Paper Bag 50 pcs 1 30 30
Plastic Jar 4 40 160
Total Tools & Supplies Expenses 944

Schedule F - Deposit & Advance Rent

No. of Price
DEPOSIT & ADVANCE RENT Amount
sq.m. per sq.m.

Lease/Rent Deposit 2 250 500

Advance Lease/Rent (2 months) 6 250 1,500
Deposit and Advance Rent 2,000

Schedule G - Leasehold Improvements

Price
LEASEHOLD IMPROVEMENTS No. of units Amount
per unit

Renovation and improvement 1 300 300

Signage 1 200 200
Total Leasehold Improvements 500

Enter number of sqm for your site 3 e.g. 3 sqm

Lease/Rent cost = 300 per sqm 900
Renovation cost = 200 per sqm 600

Schedule H - Launching, Advertising and Promotion

Price
LAUNCHING, ADVERTISING & PROMOTION No. of units Amount
per unit

Launching
Advetising
Promotions
Total Launching, Advertising and Promotions -
https://www.coa.gov.ph/phocadownload/userupload/Issuances/Circulars/Attachments/2003/C2003-007_AnnexA.pdf

Opex G - Depreciation Expense, Machines & Equipment

Useful Depreciation Schedule
Life Year 1 Year 2 Year 3 Year 4 Year 5
5 ₱ 133 ₱ 133 ₱ 133 ₱ 133 ₱ 133
5 ₱ 340 ₱ 340 ₱ 340 ₱ 340 ₱ 340
5 ₱ 76 ₱ 76 ₱ 76 ₱ 76 ₱ 76
5 ₱ 20 ₱ 20 ₱ 20 ₱ 20 ₱ 20
5 ₱ 18 ₱ 18 ₱ 18 ₱ 18 ₱ 18
₱ 586 ₱ 586 ₱ 586 ₱ 586 ₱ 586

Opex H - Depreciation Expense, Furniture & Fixtures

Useful Depreciation Schedule
Life Year 1 Year 2 Year 3 Year 4 Year 5
10 ₱ 30 ₱ 30 ₱ 30 ₱ 30 ₱ 30
10 ₱ 10 ₱ 10 ₱ 10 ₱ 10 ₱ 10
₱ 40 ₱ 40 ₱ 40 ₱ 40 ₱ 40

Opex I - Depreciation Expense, ICT

Useful Depreciation Schedule
Life Year 1 Year 2 Year 3 Year 4 Year 5
6 ₱ 450 ₱ 450 ₱ 450 ₱ 450 ₱ 450
Totals ₱ 450 ₱ 450 ₱ 450 ₱ 450 ₱ 450

Opex J - Depreciation Expense, Tools & Supplies

Useful Depreciation Schedule
Life Year 1 Year 2 Year 3 Year 4 Year 5
5 ₱ 16 ₱ 16 ₱ 16 ₱ 16 ₱ 16
5 ₱ 14 ₱ 14 ₱ 14 ₱ 14 ₱ 14
5 ₱ 20 ₱ 20 ₱ 20 ₱ 20 ₱ 20
5 ₱ 70 ₱ 70 ₱ 70 ₱ 70 ₱ 70
5 ₱ 8 ₱ 8 ₱ 8 ₱ 8 ₱ 8
5 ₱ 8 ₱ 8 ₱ 8 ₱ 8 ₱ 8
 5 ₱ 5 ₱ 5 ₱ 5 ₱ 5 ₱ 5
5 ₱ 4 ₱ 4 ₱ 4 ₱ 4 ₱ 4
5 ₱ 6 ₱ 6 ₱ 6 ₱ 6 ₱ 6
5 ₱ 6 ₱ 6 ₱ 6 ₱ 6 ₱ 6
5 ₱ 32 ₱ 32 ₱ 32 ₱ 32 ₱ 32
₱ 189 ₱ 189 ₱ 189 ₱ 189 ₱ 189

Opex F - Depreciation Expense, Leasehold Improvements

Useful Depreciation Schedule
Life Year 1 Year 2 Year 3 Year 4 Year 5
15 ₱ 20 ₱ 20 ₱ 20 ₱ 20 ₱ 20
15 ₱ 20 ₱ 20 ₱ 20 ₱ 20 ₱ 20
₱ 40 ₱ 40 ₱ 40 ₱ 40 ₱ 40

(no launching, advertising and promotion cost because we posted all on social media)
2003-007_AnnexA.pdf
 StrEATfoordables
5-YEAR INCOME STATEMENT PROJECTION

Particulars Ref. # Year 1 Year 2 Year 3

Sales ₱ 625,560 ₱ 688,116 ₱ 756,928
Less: Cost of Sales ₱ 252,720 ₱ 277,992 ₱ 305,791
Gross income ₱ 372,840 ₱ 410,124 ₱ 451,136
Less: Operating Expenses
Market Research ₱ -
Manpower Costs Opex A ₱ 355,453 ₱ 355,453 ₱ 355,453
Rent Opex B ₱ 6,000 ₱ 6,600 ₱ 7,260
Utilities Expense Opex C ₱ 2,400 ₱ 2,520 ₱ 2,646
Advertising and Promotion Opex D ₱ - ₱ - ₱ -
Business permits & licenses Opex E ₱ 2,900 ₱ 2,244 ₱ 2,311
Leasehold Improvements Opex F ₱ 40 ₱ 40 ₱ 40
Depreciation expense - M&E Opex G ₱ 586 ₱ 586 ₱ 586
Depreciation expense - F&F Opex H ₱ 40 ₱ 40 ₱ 40
Depreciation expense - Technology Opex I ₱ 450 ₱ 450 ₱ 450
Depreciation expense - T&S Opex J ₱ 189 ₱ 189 ₱ 189
Interest expense Opex K ₱ 537 ₱ 400 ₱ 255
Miscellaneous and other expenses Opex L ₱ 2,400 ₱ 2,640 ₱ 2,904
Total Operating Expenses ₱ 370,995 ₱ 371,162 ₱ 372,134
Net Income Before Tax ₱ 1,845 ₱ 38,962 ₱ 79,002
Less: 12% VAT (Sales > P3M)
₱ 18,767 ₱ 20,643 ₱ 22,708
3% of Sales (Sales <P3M)
Net Income After Tax -₱ 16,922 ₱ 18,318 ₱ 56,294

Cumulative Income -₱ 16,922 ₱ 1,396 ₱ 57,690

Percentage over Capital -3.38% 0.28% 11.54%

Opex A - Manpower Cost

Monthly
Particular Year 1 Year 2 Year 3
Rate
Basic Salary ₱ 292,000 ₱ 292,000 ₱ 292,000
SSS-ER ₱ 25,500 ₱ 25,500 ₱ 25,500
EC-ER ₱ 480 ₱ 480 ₱ 480
Provident Fund ₱ - ₱ - ₱ -
Philhealth ₱ 7,300 ₱ 7,300 ₱ 7,300
Pg-IBIG ₱ 5,840 ₱ 5,840 ₱ 5,840
13th Month ₱ 24,333 ₱ 24,333 ₱ 24,333
Totals ₱ 355,453 ₱ 355,453 ₱ 355,453

Opex B - Rent Expense 10% 10%

Monthly
Particular Year 1 Year 2 Year 3
Rate
Rent ₱ 500 ₱ 6,000 ₱ 6,600 ₱ 7,260
Totals ₱ 500 ₱ 6,000 ₱ 6,600 ₱ 7,260

Opex C - Utilities Expense 5% 5%

Particular Monthly Year 1 Year 2 Year 3
Rate
Electricity ₱ 50 ₱ 600 ₱ 630 ₱ 662
Water ₱ 50 ₱ 600 ₱ 630 ₱ 662
Communications ₱ 100 ₱ 1,200 ₱ 1,260 ₱ 1,323
Totals ₱ 200 ₱ 2,400 ₱ 2,520 ₱ 2,646

Opex D - Advertising and Promotions 5% 5%

Monthly
Particular Year 1 Year 2 Year 3
Rate
Launching ₱ -
Advertising ₱ - ₱ - ₱ - ₱ -
Promotions ₱ - ₱ - ₱ - ₱ -
Totals ₱ - ₱ - ₱ - ₱ -

Opex L - Miscellaneous and Other Expenses 10% 10%

Monthly
Particular Year 1 Year 2 Year 3
Rate
Miscellaneous ₱ 200 ₱ 2,400 ₱ 2,640 ₱ 2,904
Totals ₱ 200 ₱ 2,400 ₱ 2,640 ₱ 2,904
N

Year 4 Year 5
₱ 832,620 ₱ 915,882
₱ 336,370 ₱ 370,007
₱ 496,250 ₱ 545,875

₱ 355,453 ₱ 355,453
₱ 7,986 ₱ 8,785
₱ 2,778 ₱ 2,917
₱ - ₱ -
₱ 2,404 ₱ 2,524
₱ 40 ₱ 40
₱ 586 ₱ 586
₱ 40 ₱ 40
₱ 450 ₱ 450
₱ 189 ₱ 189
₱ 101 ₱ -
₱ 3,194 ₱ 3,514
₱ 373,221 ₱ 374,498
₱ 123,029 ₱ 171,377

₱ 24,979 ₱ 27,476

₱ 98,050 ₱ 143,901

₱ 155,741 ₱ 299,641
31.15% 59.93%

Year 4 Year 5
₱ 292,000 ₱ 292,000
₱ 25,500 ₱ 25,500
₱ 480 ₱ 480
₱ - ₱ -
₱ 7,300 ₱ 7,300
₱ 5,840 ₱ 5,840
₱ 24,333 ₱ 24,333
₱ 355,453 ₱ 355,453

10% 10%
Year 4 Year 5
₱ 7,986 ₱ 8,785
₱ 7,986 ₱ 8,785

5% 5%
Year 4 Year 5
₱ 695 ₱ 729 ( no electricity is used, so the bill is low.)
₱ 695 ₱ 729
₱ 1,389 ₱ 1,459 ( 100 pesos load monthly for DITO Sim)
₱ 2,778 ₱ 2,917

5% 5%
Year 4 Year 5
(no advertising or promotion)
₱ - ₱ -
₱ - ₱ -
₱ - ₱ -

10% 10%
Year 4 Year 5
₱ 3,194 ₱ 3,514
₱ 3,194 ₱ 3,514
 ASSETS = LIABILITIES + OWNERS EQUITY ( + Sales - COS - Expenses)
BALANCE SHEET
ASSETS
Cash M&E F&F ICT T&S LH Impr Deposit
PRE-OP 15,000
10,000
(2,931) 2,931
(400) 400
(2,748) 2,748
(944) 944

(500) 500
(1,500)
(500) 500

Year 1 625,560
(252,720)
(355,453)
(5,000)
(2,400)
-
(2,900)
(40)
(586)
(40)
(450)
(189)
(537)
(2,400)
(2,286)
(14,075)
Subtotals 3,265 2,345 360 2,298 755 460 500
A = L + OE 10,484

Year 2 3,265 2,345 360 2,298 755 460 500

688,116
(277,992)
(355,453)
(6,600)
(2,520)
-
 (2,244)
(40)
(586)
(40)
(450)
(189)
(400)
(2,640)
(2,423)
(15,483)
(4,692)

Subtotals 20,935 1,759 320 1,848 566 420 500

A = L + OE 26,848

Year 3 20,935 1,759 320 1,848 566 420 500

756,928
(305,791)

(355,453)
(7,260)
(2,646)
-
(2,311)
(40)
(586)
(40)
(450)
(189)
(255)
(2,904)
(2,568)
(17,031)
(5,161)

Subtotals 76,481 1,172 280 1,399 378 380 500

A = L + OE 81,090

Year 4 76,481 1,172 280 1,399 378 380 500

 832,620
(336,370)

(355,453)
(7,986)
(2,778)
-
(2,404)
(40)
(586)
(40)
(450)
(189)
(101)
(3,194)
(2,723)
(18,734)
(5,677)

Subtotals 173,682 586 240 949 189 340 500

A = L + OE 176,985

Year 5 173,682 586 240 949 189 340 500

915,882
(370,007)

(355,453)
(8,785)
(2,917)
-
(2,524)
(40)
(586)
(40)
(450)
(189)
(27,476)
(3,514)
 -
(20,607)
(6,245)

Subtotals 292,035 - 200 499 - 300 500

A = L + OE 294,034
- COS - Expenses)
SHEET
INCOME STATEMENT
LIABILITIES EQUITY
PP Rent A/P Loan Capital Drawing Sales COS Expenses
15,000
10,000

1,500

625,560
(252,720)
(355,453)
(1,000) (6,000)
(2,400)
-
(2,900)
(40)
(586)
(40)
(450)
(189)
(537)
(2,400)
(2,286)
4,692 (18,767)
500 4,692 7,714 15,000 - 625,560 (252,720) (389,762)
10,484 (16,922)

500 4,692 7,714 (1,922)

688,116
(277,992)
(355,453)
(6,600)
(2,520)
-
 (2,244)
(40)
(586)
(40)
(450)
(189)
(400)
(2,640)
(2,423)
5,161 (20,643)
(4,692)

500 5,161 5,291 (1,922) - 688,116 (277,992) (391,806)

26,848 18,318

500 5,161 5,291 16,396

756,928
(305,791)

(355,453)
(7,260)
(2,646)
-
(2,311)
(40)
(586)
(40)
(450)
(189)
(255)
(2,904)
(2,568)
5,677 (22,708)
(5,161)

500 5,677 2,723 16,396 - 756,928 (305,791) (394,842)

81,090 56,294

500 5,677 2,723 72,690

 832,620
(336,370)

(355,453)
(7,986)
(2,778)
-
(2,404)
(40)
(586)
(40)
(450)
(189)
(101)
(3,194)
(2,723)
6,245 (24,979)
(5,677)

500 6,245 - 72,690 - 832,620 (336,370) (398,200)

176,985 98,050

500 6,245 - 170,741

915,882
(370,007)

(355,453)
(8,785)
(2,917)
-
(2,524)
(40)
(586)
(40)
(450)
(189)
(27,476)
(3,514)
 -
6,869 (27,476)
(6,245)

500 6,869 - 170,741 - 915,882 (370,007) (429,451)

294,034 116,424

287,165
 DESCRIPTION

Contribution of owner
Loan proceeds
Machines and Equipment
Furniture and Fixtures
Technological Expenses
Tools and Accessories Expenses
Market research
Lease/Rent Deposit
Advance Lease/Rent
Renovation and site improvement

Sales
COS
Manpower Costs
Rent
Utilities Expense
Advertising and Promotion
Business permits & licenses
Leasehold Improvements
Depreciation expense - M&E
Depreciation expense - F&F
Depreciation expense - Technology
Depreciation expense - T&S
Interest expense
Miscellaneous and other expenses
Payment of loan
Tax Payment

Balance from Year 1

Manpower Costs
Rent
Utilities Expense
Advertising and Promotion
Business permits & licenses
Leasehold Improvements
Depreciation expense - M&E
Depreciation expense - F&F
Depreciation expense - Technology
Depreciation expense - T&S
Interest expense
Miscellaneous and other expenses
Payment of loan
Tax Payment (Q1-Q3)
Tax Payment (Q4 last year)

Balance from Year 2

A/R collections
A/P payments

Manpower Costs
Rent
Utilities Expense
Advertising and Promotion
Business permits & licenses
Leasehold Improvements
Depreciation expense - M&E
Depreciation expense - F&F
Depreciation expense - Technology
Depreciation expense - T&S
Interest expense
Miscellaneous and other expenses
Payment of loan
Tax Payment (Q1-Q3)
Tax Payment (Q4 last year)

Balance from Year 3

A/R collections
A/P payments

Manpower Costs
Rent
Utilities Expense
Advertising and Promotion
Business permits & licenses
Leasehold Improvements
Depreciation expense - M&E
Depreciation expense - F&F
Depreciation expense - Technology
Depreciation expense - T&S
Interest expense
Miscellaneous and other expenses
Payment of loan
Tax Payment (Q1-Q3)
Tax Payment (Q4 last year)

Balance from Year 4

A/R collections
A/P payments
revenue from sales
COS deducted from inventory
purchase of inventory
Manpower Costs
Rent
Utilities Expense
Advertising and Promotion
Business permits & licenses
Leasehold Improvements
Depreciation expense - M&E
Depreciation expense - F&F
Depreciation expense - Technology
Depreciation expense - T&S
Interest expense
Miscellaneous and other expenses
Payment of loan
Tax Payment (Q1-Q3)
Tax Payment (Q4 last year)
StrEATfoordables
5-YEAR CASH FLOW STATEMENT

Particular Year 1 Year 2

Cash Balance, Beginning 3,265
CASH IN 650,560 691,381
Capital contribution 15,000
Financial Loan 10,000
Revenue from Sales 625,560 688,116
CASH OUT 647,295 670,447
Machines and Equipment 2,931
Furniture and Fixtures 400
Technological Expenses 2,748
Tools and Accessories Expenses 944
Market research -
Lease/Rent Deposit 500
Advance Lease/Rent 1,500
Renovation and site improvement 500
COS 252,720 277,992
Manpower Costs 355,453 355,453
Rent 5,000 6,600
Utilities Expense 2,400 2,520
Advertising and Promotion - -
Business permits & licenses 2,900 2,244
Interest expense 537 400
Miscellaneous and other expenses 2,400 2,640
Payment of loan 2,286 2,423
Tax Payment (Q1-Q3) 14,075 15,483
Tax Payment (Q4 last year) 4,692
Cash Balance, Ending 3,265 20,935
Year 3 Year 4 Year 5
20,935 76,481 173,682
777,862 909,102 1,089,564

756,928 832,620 915,882

701,381 735,420 797,529

305,791 336,370 370,007

355,453 355,453 355,453
7,260 7,986 8,785
2,646 2,778 2,917
- - -
2,311 2,404 2,524
255 101 27,476
2,904 3,194 3,514
2,568 2,723 -
17,031 18,734 20,607
5,161 5,677 6,245
76,481 173,682 292,035
StrEATfoordables
5-YEAR BALANCE SHEET STATEMENT PROJECTION

Particulars Year 1 Year 2 Year 3

ASSETS
Current Assets
Cash 3,265 20,935 76,481
Total Current Assets 3,265 20,935 76,481
Fixed Assets
Machines & Equipment 2,931 2,931 2,931
Less: Accu Depn - M&E (586) (1,172) (1,759)
NBV - M&E 2,345 1,759 1,172
Furniture & Fixtures 400 400 400
Less: Accu Depn - F&F (40) (80) (120)
NBV - F&F 360 320 280
Technology 2,748 2,748 2,748
Less: Accu Depn - ICT (450) (900) (1,350)
NBV - ICT 2,298 1,848 1,399
Tools and Accessories 944 944 944
Less: Accu Depn - T&A (189) (378) (566)
NBV - T&A 755 566 378
Leasehold Improvement 500 500 500
Less: Accu Depn - LH Impr (40) (80) (120)
NBV - LH Impr 460 420 380
Total Fixed Assets 6,218 4,913 3,609
Other Assets
Deposits 500 500 500
PP Rent 500 500 500
Total Other Assets 1,000 1,000 1,000
Total Assets 10,484 26,848 81,090

LIABILITIES & OWNERS EQUITY

Liability
Accounts payable 4,692 5,161 5,677
Loans Payable 7,714 5,291 2,723
Total Liabilities 12,406 10,452 8,400
Owner's Equity
Capital, Beginning 15,000 (1,922) 16,396
Add: Additional Capital
Add: Net Income
Less: Withdrawals
 Less: Net Loss (16,922) 18,318 56,294
Capital, Ending (1,922) 16,396 72,690
Total Liabilities & Owners Equity 10,484 26,848 81,090
Year 4 Year 5

173,682 292,035
173,682 292,035

2,931 2,931
(2,345) (2,931)
586 -
400 400
(160) (200)
240 200
2,748 2,748
(1,799) (2,249)
949 499
944 944
(755) (944)
189 -
500 500
(160) (200)
340 300
2,304 999

500 500
500 500
1,000 1,000
176,985 294,034

6,245 6,869
- -
6,245 6,869

72,690 170,741
 98,050 116,424
170,741 287,165
176,985 294,034
 STREATFOORDABLES
FINANCIAL RATIOS

Financial ratios are created with the use of numerical values taken from financial statements to gain meaningful
information about a company.

LIQUIDITY RATIOS

Liquidity ratios are financial ratios that measure a company’s ability to repay both short- and long-term obligations.

The current ratio measures a company’s ability to pay off short-term liabilities with current assets:
Current Assets = Cash + Inventory + A/R
Financial Ratio Formula Year 1 Year 2 Year 3
Current Assets
Current Ratio 0.70 27.81 #DIV/0!
Current Liabilities

The acid-test ratio measures a company’s ability to pay off short-term liabilities with quick assets
Financial Ratio Formula Year 1 Year 2 Year 3
Current Assets - Inventories
Acid-Test Ratio 0.70
Current Liabilities

The cash ratio measures a company’s ability to pay off short-term liabilities with cash and cash equivalents
Financial Ratio Formula Year 1 Year 2 Year 3
Cash
Cash Ratio 0.70 4.06 13.47
Current Liabilities

The operating cash flow ratio is a measure of the number of times a company can pay off current liabilities with the cash
Financial Ratio Formula Year 1 Year 2 Year 3
Operating Cashflow
Operating Cash Flow Ratio 0.70
Current Liabilities

LEVERAGE FINANCIAL RATIOS

Leverage ratios measure the amount of capital that comes from debt. In other words, leverage financial ratios are used

The debt ratio measures the relative amount of a company’s assets that are provided from debt
Financial Ratio Formula Year 1 Year 2 Year 3
Total Liabilities
Debt Ratio 3.80 0.50 0.11
Total Assets

The debt to equity ratio calculates the weight of total debt and financial liabilities against shareholders’ equity.
Financial Ratio Formula Year 1 Year 2 Year 3
 Total Liabilities
Debt to Equity Ratio -6.45 0.64 0.12
Equity

The interest coverage ratio shows how easily a company can pay its interest expenses. Operating income takes a compan
Financial Ratio Formula Year 1 Year 2 Year 3
Operating Income
Interest Coverage Ratio 3.43 97.38 310.17
Interest Expenses

Debt service is the cash required to pay back the principal and interest of outstanding debt for a particular period of time.
Financial Ratio Formula Year 1 Year 2 Year 3
Debt Service Coverage Operating Income
-2.19 3.46 20.68
Ratio Total Debt Service

EFFICIENCY RATIOS

Efficiency ratios, also known as activity financial ratios, are used to measure how well a company is utilizing its assets an

The asset turnover ratio measures a company’s ability to generate sales

from assets
Financial Ratio Formula Year 1 Year 2 Year 3
Net Sales
Asset Turnover Ratio 26.02 Err:509 1.12
Average Total Assets

The inventory turnover ratio measures how many times a company’s inventory is sold and replaced over a given period
Financial Ratio Formula Year 1 Year 2 Year 3
Cost of Goods Sold
Inventory Turnover Ratio
Average Inventory

The accounts receivable turnover ratio measures how many times a company can turn receivables into cash over a given
Financial Ratio Formula Year 1 Year 2 Year 3
Accounts Receivable Net Credit Sales
Turnover Average Accounts Receivable

The days sales in inventory ratio measures the average number of days that a company holds on to inventory before selli
Financial Ratio Formula Year 1 Year 2 Year 3
365 days
Days Sales in Inventory
Inventory Turnover Ratio

PROFITABILITY RATIOS

Profitability ratios measure a company’s ability to generate income relative to revenue, balance sheet assets, operating

The gross margin ratio compares the gross profit of a company to its net sales to show how much profit a company make
Financial Ratio Formula Year 1 Year 2 Year 3
 Gross Profit
Gross Margin Ratio 0.60 0.60 #VALUE!
Net Sales

The operating margin ratio compares the operating income of a company to its net sales to determine operating efficienc
Financial Ratio Formula Year 1 Year 2 Year 3
Operating Income
Operating Margin Ratio 0.00 0.15 #VALUE!
Net Sales

The return on assets ratio measures how efficiently a company is using its assets to generate profit

Financial Ratio Formula Year 1 Year 2 Year 3

Net Income
Return on Assets Ratio 0.18
Total Assets

The return on equity ratio measures how efficiently a company is using its equity to generate profit

Financial Ratio Formula Year 1 Year 2 Year 3

Net Income
Return on Equity -0.96
Equity
 ements to gain meaningful

ort- and long-term obligations.

rent assets:

Year 4 Year 5
#DIV/0! #DIV/0!

Year 4 Year 5

and cash equivalents

Year 4 Year 5

27.81 42.51

off current liabilities with the cash generated in a given period

Year 4 Year 5

, leverage financial ratios are used to evaluate a company’s debt levels

Year 4 Year 5

0.04 0.02

nst shareholders’ equity.

Year 4 Year 5
 0.04 0.02

Operating income takes a company's gross income, which is equivalent to total revenue minus cost of goods sold (COGS), and subtracts a
Year 4 Year 5

1222.83 #DIV/0!

debt for a particular period of time.

Year 4 Year 5

#DIV/0! #DIV/0!

l a company is utilizing its assets and resources

Year 4 Year 5

and replaced over a given period

Year 4 Year 5

n receivables into cash over a given period

Year 4 Year 5

y holds on to inventory before selling it to customers

Year 4 Year 5

ue, balance sheet assets, operating costs, and equity

how much profit a company makes after paying its cost of goods sold
Year 4 Year 5
 #DIV/0! #DIV/0!

es to determine operating efficiency

Year 4 Year 5

#DIV/0! #DIV/0!

nerate profit

Year 4 Year 5

nerate profit

Year 4 Year 5
ld (COGS), and subtracts all operating expenses.