FINANCIAL COMPONENTS

A. INCOME STATEMENT
Presented are projected financial statements covering a three year and three
month period. Relevant assumptions are as follows:
Service Tax Rate is at 2%
Corporate Income Tax Rate is 30%
Suppliers services costs increased by 7% per annum
Accounts Receivable is 10% of income (inclusive of Service Tax )
B. INITIAL CAPITALIZATION:
a. Breakdown of Initial Capitalization Needed
I.
Machineries and Equipment:
Table 1.2: Machinery and Equipment
Item
Specifications
Total Price
Two way radio
5
P 24 500
Storage Box
2
598
TOTAL MACHINERY and EQUIPMENT
P 25 098
II.

Furniture and Fixtures

Table 1.3: Furniture and Fixtures
Emachine Laptop
1
P 23 799
14
Macbook
1
59 000
iPad
1
27 800
Dtab tablet
1
7 495
Epson L210 Printer
1
7 650
Metal Filing Cabinet
1
2 880
TOTAL FURNITURE and FIXTURES
P 128 624

III.

Supplies Expense
Table 1.4: Supplies expense and services
Rims of Bond Paper
3
P 525
Board Specialty
2
60
Paper
Specialty Paper
5
300
Glossy
Filed Organizers
4
3340
Pubmats Printing
50
2000
TOTAL SUPPLIES EXPENSE
P 6 225

IV.

Other Expenses
Table 1.5: Other Expenses
SEC Verification
1
P 40
Treasurers affidavit
1
500
SEC Registration
1
1520
Community Tax
1
500
Mayors Permit
1
1000
DTI name
1
300
registration
Print Receipts and
1
4000
Invoices
Corporate Jacket
4
4800
Polo Shirt Uniform
18
4320
Pin
10
1500
TOTAL OTHER EXPENSES
P 18 510

V.

Working Capital
Table 1.6: Working Capital (First month
Working Fund
First 3 events
Advertising Expense
Communication and
Transportation
TOTAL Working Capital

after opening)
P90 000
10 000
P100 000

C. SOURCE OF FUNDS
Table 1.6: Source of Funds
Initial Investment from the proprietors
P 278 457
TOTAL INITIAL CAPITAL
P 278 457
D. SALES PROJECTION
Academic Approach
Computed as follows:
Politician Respondents (7/10) = 70%
Student Leader Respondents (5/10) = 50%
Individuals 18-27- (6/10) = 60%
Company Managers (5/10) = 50%
Median: 57.5 % = Yes theyll buy (Target Market or segmentation)
Standard mode of payment used in the projection: Flat rate

Event Category (Standard):

1. 6 months and over preparation: Weddings etc.
2. 4-5 months preparation: Debuts, concerts etc.
3. 3 months preparation: Seminars, Reunion, Conventions, Competitions,
Fiestas etc.
4. 2 months preparation: Baptismal, Birthday Parties, Holiday parties,
Charities, Corporate Launching, Bazaars
5. 1 month preparation: College Parties, School Fairs, Corporate meetings,
etc.
Price Chart Flat Rate:
All in Package:
Event Category
1
2
3
4
5
6

Number of meetings
7
5
4
3
2
1

Flat rate
50 000
40 000
35 000
25 000
20 000
15 000

Number of meetings
6
4
3
2
1
1

Flat rate
35 000
30 000
20 000
15 000
10 000
10 000

Partial Package:
Event Category
1
2
3
4
5
6

Note: the initial meeting (plus 1) will not be charged against the client
Partnership assets will be used to finance the first meetings
Prices will be subjected to changes upon negotiation

-On the Day of any event: Standard rate of P 10 000 subject to

negotiations
-Program Conceptualization: Standard rate of P5 000 for actual
events subject to negotiations depending on client demand
-Skype consultation starts at P 3 000 per hour
POLICIES:
-every meetings exceeding the standard meeting included in the
package
-every rush coordination, additional payment will be charged against
the client
-events outside the metro will be charged differently
-additional manpower will be charged against the client

FLAT RATE COMPUTATION:

Basis: All in Package 6 months and over preparation
Flat rate: P 50000
Budget per meeting: P 1 500
Allowance for ushers (3 ushers per package): P 500 each
Transportation expense for the whole duration: 10 000
Salary share of main coordinators: P 5000
Evaluation and Token to client: P 2 000
Price = (1500x7)+(500x3)+(10000)+(5000x3)+(2000)
Price = P 39 000
Partnership profit = P11 000
Allowance is made for negotiation purposes and for contingency
*Budget for meeting, ushers and manpower allowance, and evaluation and
token to client are constant
*Transportation expense and salary share of main coordinators is the
adjustable variables depending on package
SALES PROJECTION

FIRST YEAR
Month of May (Opening) usual events are fiestas, assumed all in packages
(basis: survey and interviews) DISCOUNT STARTS AT 10% depending on the
event
Event
category

Maximum
event
frequency
(multiplier)
2

Willing
buyers

3 months
6
preparation
Less: (multiplier 2)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Discount 10%
Month of may (gross profit)

Selling Price

Income
Projection

35 000

70 000
(60 000)

P 10 000

Month of June - July (Opening plus 1 discounted event) usual events

are campus events (basis: survey and interviews)

Event
category

Maximum
event
frequency
(multiplier)
2

Willing
buyers

1 month
6
preparation
Less: (multiplier 2)
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Discount of 10% from 15 000
Month of June - July (gross profit)

Selling Price

Income
Projection

15 000

30 000
(21 500)

P 8 500

Month of August- November usual events are campus events (basis: survey
and interviews)
Event
category

Maximum
event
frequency
(multiplier)
3

Willing
buyers

Selling Price

1 month
6
15 000
preparation
Less: (multiplier 3)
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of August - November (gross profit)

Income
Projection
45 000
(20 000)

P 15 000

Month of December - February usual events are weddings, corporate

parties, and holidays (basis: survey and interviews)
Event
category

Maximum
event
frequency
(multiplier)
4

Willing
buyers

Selling Price

4-5 months
6
40 000
preparation
Less: (multiplier 4)
Meetings (7500) 30 000
Ushers and manpower (1500) 6000
Transportation Expense (8000) 32 000
Salary share (12000) 48 000
Token and evaluation (2000) 8000
Month of December - February (gross profit)

Income
Projection
160 000
(124 000)

P 36 000

Month of March - May usual events are corporate meeting, graduation

events. fiestas (basis: survey and interviews)
Event
category

Maximum
event
frequency
(multiplier)
5

Willing
buyers

3 months
6
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 1 GROSS PROFIT

Selling Price

Income
Projection

35 000

175 000
(132 500)

P 42 500
P 112 000

SECOND YEAR
Event
category

Maximum
event
frequency
(multiplier)
5

Selling Price

Income
Projection

1 month
6
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of June - July (gross profit)

15 000

75 000

Event
category

Selling Price

Maximum
event
frequency
(multiplier)
5

Willing
buyers

Willing
buyers

(50 000)

P 15 000

1 month
6
15 000
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of August - November (gross profit)

Income
Projection
75 000
(50 000)

P 15 000

Event
category

Maximum
event
frequency
(multiplier)
5

Willing
buyers

Selling Price

Income
Projection

4-5 months
6
40 000
preparation
Less:
Meetings (7500) 37 500
Ushers and manpower (1500) 7500
Transportation Expense (8000) 40 000
Salary share (12000) 60 000
Token and evaluation (2000) 10 000
Month of December - February (gross profit)

200 000

Event
category

Selling Price

Income
Projection

35 000

175 000

Maximum
event
frequency
(multiplier)
5

Willing
buyers

3 months
6
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 2 GROSS PROFIT

(155 000)

P 45 000

(132 500)

P 42 500
P 117 500

THIRD YEAR
Event
category

Maximum
event
frequency
(multiplier)
5

Selling Price

Income
Projection

1 month
6
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of June - July (gross profit)

15 000

75 000

Event

Selling Price

Maximum

Willing
buyers

Willing

(50 000)

P 15 000
Income

category

event
frequency
(multiplier)
5

buyers

Projection

1 month
6
15 000
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of August - November (gross profit)

75 000

Event
category

Income
Projection

Maximum
event
frequency
(multiplier)
5

Willing
buyers

Selling Price

(50 000)

P 15 000

4-5 months
6
40 000
preparation
Less:
Meetings (7500) 37 500
Ushers and manpower (1500) 7500
Transportation Expense (8000) 40 000
Salary share (12000) 60 000
Token and evaluation (2000) 10 000
Month of December - February (gross profit)

200 000

Event
category

Selling Price

Income
Projection

35 000

175 000

Maximum
event
frequency
(multiplier)
5

Willing
buyers

3 months
6
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 3 GROSS PROFIT

(155 000)

P 45 000

(132 500)

P 42 500
P 117 500

FOURTH YEAR (FIRST 3 MONTHS) after expansion of

partner
Event
category

Maximum
event

Willing
buyers

Selling Price

Income
Projection

frequency
(multiplier)
6

1 month
6
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of June - July (gross profit)

15 000

(60 000)

P 30 000

E. BREAK-EVEN ANALYSIS

Fixed Cost
Divided by
Contribution
Margin
Break-even
analysis in
pesos

Table 1.7: Break-Even Analysis

Year 1
Year 2
Year 3
135 500
152 500
152 500
0.5292968
0.525862
0.525862

135 499. 54

152 499.56

Computation:
480 000-224000 = 256 000
525000- 235 000= 290 000
525000- 235 000= 290 000

[Fixed Cost / 1 (Variable Cost / Sales)]

90 000

152 499.56