A.

SALES FORECAST
The following table and related charts show our present sales forecast.
Table 5.1 Annual Sales Forecast
ANNUAL
SALES
FORECAST
Sales
Store Revenue

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

4,320,0
00

5,184,0
00

6,220,8
00

7,464,9
60

8,957,952

432,000

518,40
0
5,702,
400

622,800

746,496

6,843,6
00

8,211,4
56

895,795.2
0
9,853,74
7.20

1,036,8
00
1,036,
800

1,244,1
60
1,244,1
60

1,492,9
92
1,492,9
92

1,791,590
.40
1,791,59
0.40

Service and Repair

Total Sales
Cost of Sales
Jewelry and Supplies
Total Cost of Sales

4,752,0
00
864,000
864,00
0

B. FINANCIAL PLAN
Profit and Loss shows the profitability of the business, whereas, the Balance
Sheet shows the financial position of the ARC Jewelry Store. These documents
are required to get financing for your venture.
Since we are entering a retail environment we will accept cash, checks, and
all major credit cards.
1. START-UP COSTS
The cost to setup a store and prepare it for operation total P2, 533,500.
Startup inventory will cost approximately P2, 241,000.
Start-up costs will be financed through owner investment.
Table 5.2 Start-Up Costs
Start-Up Assets
Starting inventory
P2,241,000
Fixtures and Equipment
17,775
Store Equipment
30,000
Store Supplies
3,725
Total Start-Up Assets
P2,292,500
Total Required Start-Up Costs
P2,292,500
2. SOURCE AND USE OF FUNDS
This startup will be completely financed by the owner of the business.
The startup funds will be used to purchase initial inventory, purchase the

store and display case, Additionally the owner will provide the necessary
working capital requirements to fund day to day operations for the initial
year of operations. The owner has enough funding to completely fund the
business for the first 24 months without relying on sales or other sources
of funds. The funds are liquid and primarily in the form of marketable
securities.

Table 7.3 Source and Use of Funds

Source and Use of Funds
Sources of Funds
A, Capital
2,000,000
R, Capital
2,000,000
C, Capital
2,000,000
Total Source of Funds
6,000,000
Use of Funds
Fixtures and Equipment
Store Supplies
Opening inventory
Working capital
Total Use of Funds

17,775
3,725
2,241,000
1,500,000
P3,762,500

C. PROJECTIONS
There are three key projections needed for this section; Profit and Loss, Cash
Flow and Balance Sheet. For a start-up business we have to project figures
for all of the above financial statements, such statements are called pro
forma statements. The word pro forma means provided in advance.
1. Projected Profit and Loss
The Profit and Loss statement details the income and sales of ARC Jewelry
over a specified period.
INCOME
SALES
Less: Cost of Sales
Gross Profit
Less:
Operating
Expenses
Professional Fees
Bad Debts
Depreciation
Insurance
SSS, Pag-ibig, Phil

YEAR 1
4,752,00
0
864,000
3,888,0
00

YEAR 2
5,702,40
0
1,036,80
0
4,665,6
00

YEAR 3
6,843,60
0
1,244,16
0
5,599,4
40

YEAR 4
8,211,4
56
1,492,9
92
6,719,
000

YEAR 5
9,853,747
.20
1,791,590
.40
8,062,15
6.80

Health
Taxes & Licenses
Rent
Salaries
Utilities
Advertising

2. PROJECTED BALANCE SHEET

The balance sheet provides instant picture of the business. It has two
sections; one is for assets and the other for liabilities and capital.
ASSETS
Current Assets
Cash
Accounts Receivable
Inventory
Office Supplies
Total Current Assets
Non-current Assets
Furniture and Fixtures
Less:
Accumulated
Depreciation
Store Equipment
Less:
Accumulated
Depreciation
Total Non-current Assets
Total Assets
LIABILITIES AND EQUITY
Liabilities
Accounts Payable
Notes Payable
Total Liabilities
Equity
A, Capital
R, Capital
C, Capital
Total Equity
Total Liabilities & Equity

Year 1

Year 2

Year 3

Year 4

Year 5