PROJECT COST

The following table shows the computation of the cost incurred for the activities of the
business. It will provide detailed, time-phased estimate of all resource cost that serve as
basis for necessary funds in supporting the investment.

Pre-Operating Cost
Feasibility Study Cost ₱5,000.00
Registration of Business ₱12,325.00
Marketing Expense ₱19,000.00
Printing cost of Invoices, OR, Vouchers ₱3,500.00
Professional Fees (Business Lawyers ₱20,000.00
and Consultant
TOTAL ₱59,825.00

Working Capital
Cash Balance Requirement ₱214,633.69
Initial Inventory ₱12,791.31
Office Supplies ₱1,200.00
Store Supplies ₱800.00
Prepaid Rent ₱45,000.00
TOTAL ₱274,425.00

Capital Expenditure
Equipment, Machines, Utensils, Tools ₱150,750.00
Rental Deposit ₱15,000.00
TOTAL ₱165,750.00

PROJECT COST SUMMARY

Pre-Operating Cost ₱59,825.00
Working Capital ₱274,425.00
Capital Expenditure ₱165,750.00
Total ₱500,000.00

53
 Sources of Financing
The capital structure of Burger Shack is primarily composed of the equity contributed by
the owners. There are 5 capitalist partners that will invest Php 300,000 each. The total
capital of the entity would be Php 1,500,000 which would be enough to cover all the
expenses for total project cost.

Sources of Financing
Capitalist Contributions
Ayahao 100,000
Ayuste 100,000
Mandocdoc 100,000
Melad 100,000
Veneracion 100,000
Total Contributions 500,000

54
 PROJECTED FINANCIAL STATEMENTS

BURGER SHACK
Statement of Financial Position
For Years 1-5
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS
Current Assets
Cash 214,633.69 ₱1,200,252.69 ₱1,918,208.17 ₱2,723,762.84 ₱3,636,836.02 ₱4,738,389.68
Inventory 12,791.31 ₱25,582.63 ₱26,220.64 ₱27,806.75 ₱30,300.58 ₱33,936.65
Office Supplies 1,200.00 ₱600.00 ₱618.00 ₱661.26 ₱714.16 ₱799.86
Store Supplies 800.00 ₱400.00 ₱412.00 ₱440.84 ₱476.11 ₱533.24
Prepaid Rent 45,000.00 - - - - -
Pre-operating Cost 59,825.00 - - - - -
Total Current Assets 334,250.00 ₱1,226,835.31 ₱1,945,458.82 ₱2,752,671.69 ₱3,668,326.86 ₱4,773,659.42

Non-Current Assets
Equipment, net 48,400.00 ₱45,073.33 ₱41,746.67 ₱38,420.00 ₱35,093.33 ₱31,766.67
Furniture and Fixtures,net 300.00 ₱240.00 ₱180.00 ₱120.00 ₱60.00 ₱0.00
Utensils/Tools,net 2,050.00 ₱1,835.00 ₱1,620.00 ₱1,405.00 ₱1,190.00 ₱975.00
Leasehold
Improvement,net 100,000.00 ₱90,000.00 ₱80,000.00 ₱70,000.00 ₱60,000.00 ₱50,000.00
Rental Deposit 15,000.00 ₱15,000.00 ₱15,000.00 ₱15,000.00 ₱15,000.00 ₱15,000.00
Total Non-Current Assets 165,750.00 ₱152,148.33 ₱138,546.67 ₱124,945.00 ₱111,343.33 ₱97,741.67
TOTAL ASSETS 500,000.00 ₱1,378,983.65 ₱2,084,005.48 ₱2,877,616.69 ₱3,779,670.20 ₱4,871,401.09

55
LIABILITIES
Current Liabilities
Premium Payable - ₱5,505.00 ₱5,505.00 ₱5,505.00 ₱5,505.00 ₱5,505.00
Withholding Tax Payable - ₱4,009.54 ₱4,009.54 ₱4,009.54 ₱4,009.54 ₱4,009.54
Income Tax Payable - ₱260,840.73 ₱289,758.77 ₱325,010.99 ₱368,119.35 ₱437,955.07
TOTAL LIABILITIES ₱270,355.27 ₱299,273.31 ₱334,525.53 ₱377,633.89 ₱447,469.61

OWNER'S EQUITY
Ayahao, Capital 100,000.00 ₱221,725.67 ₱356,946.43 ₱508,618.23 ₱680,407.26 ₱884,786.30
Ayuste, Capital 100,000.00 ₱221,725.67 ₱356,946.43 ₱508,618.23 ₱680,407.26 ₱884,786.30
Mandocdoc, Capital 100,000.00 ₱221,725.67 ₱356,946.43 ₱508,618.23 ₱680,407.26 ₱884,786.30
Melad, Capital 100,000.00 ₱221,725.67 ₱356,946.43 ₱508,618.23 ₱680,407.26 ₱884,786.30
Veneracion, Capital 100,000.00 ₱221,725.67 ₱356,946.43 ₱508,618.23 ₱680,407.26 ₱884,786.30
TOTAL OWNER'S EQUITY 500,000.00 ₱1,108,628.37 ₱1,784,732.17 ₱2,543,091.16 ₱3,402,036.31 ₱4,423,931.48
TOTAL LIABILITIES and
EQUITY 500,000.00 ₱1,378,983.65 ₱2,084,005.48 ₱2,877,616.69 ₱3,779,670.20 ₱4,871,401.09

BURGER SHACK
Statement of Changes in Equity
For Years 1-5
Year 1 Year 2 Year 3 Year 4 Year 5
Beginning ₱500,000.00 ₱1,108,628.37 ₱1,784,732.17 ₱2,543,091.16 ₱3,402,036.31
Add: Net Income ₱608,628.37 ₱676,103.80 ₱758,358.98 ₱858,945.15 ₱1,021,895.17
Ending ₱1,108,628.37 ₱1,784,732.17 ₱2,543,091.16 ₱3,402,036.31 ₱4,423,931.48

56
 BURGER SHACK
Statement of Financial Performance
For the Year 1-5
Year 1 Year 2 Year 3 Year 4 Year 5
Sales Revenue ₱2,639,480.34 ₱2,718,664.75 ₱2,908,971.28 ₱3,141,688.98 ₱3,518,691.66
Less: Cost of Goods Sold ₱1,239,550.23 ₱1,268,236.18 ₱1,337,177.95 ₱1,421,484.14 ₱1,558,059.56
Gross Profit ₱1,399,930.11 ₱1,450,428.57 ₱1,571,793.33 ₱1,720,204.84 ₱1,960,632.10
Less: Operating Expenses
Gen. Admin
Expenses ₱216,118.60 ₱168,636.60 ₱168,679.86 ₱168,732.76 ₱168,818.46
Selling Expenses ₱314,342.40 ₱315,929.40 ₱319,743.49 ₱324,407.58 ₱331,963.40
Income Before Tax ₱869,469.11 ₱965,862.57 ₱1,083,369.98 ₱1,227,064.50 ₱1,459,850.24
Less: Tax (30%) ₱260,840.73 ₱289,758.77 ₱325,010.99 ₱368,119.35 ₱437,955.07
Net Income: ₱608,628.37 ₱676,103.80 ₱758,358.98 ₱858,945.15 ₱1,021,895.17

57
 BURGER SHACK
Statement of Cash Flows
Year 1 Year 2 Year 3 Year 4 Year 5
Profit before Tax 869,469.11 965,862.57 1,083,369.98 1,227,064.50 1,459,850.24
Adjustments:
Depreciation 13,601.67 13,601.67 13,601.67 13,601.67 13,601.67
Premium Liability 5,505.00 - - - -
Withholding Tax Liability 4,009.54 - - - -
Increase in Inventory (12,791.31) (638.02) (1,586.10) (2,493.83) (3,636.07)
Decrease in Office Supplies 600.00 (18.00) (43.26) (52.90) (85.70)
Decrease in Store Supplies 400.00 (12.00) (28.84) (35.27) (57.13)
Decrease in Prepaid Rent 45,000.00 - - - -
Pre-Operating Activities 59,825.00
Cash generated from operating
activities 985,619.00 978,796.22 1,095,313.44 1,238,084.17 1,469,673.01
Income Taxes Paid - (260,840.73) (289,758.77) (325,010.99) (368,119.35)
Net Cash Flow from Operating
Activities ₱985,619.00 ₱717,955.49 ₱805,554.67 ₱913,073.18 ₱1,101,553.66
Purchase of Property and
Equipment - - - - -
Net Cash Flow from Investing
Activities ₱0.00 ₱0.00 ₱0.00 ₱0.00 ₱0.00
Capital Contribution - - - - -
Net Cash Flow from Financial
Activities ₱0.00 ₱0.00 ₱0.00 ₱0.00 ₱0.00

NET CASH FLOW ₱985,619.00 ₱717,955.49 ₱805,554.67 ₱913,073.18 ₱1,101,553.66

Cash, Beginning ₱214,633.69 ₱1,200,252.69 ₱1,918,208.17 ₱2,723,762.84 ₱3,636,836.02
CASH, Ending ₱1,200,252.69 ₱1,918,208.17 ₱2,723,762.84 ₱3,636,836.02 ₱4,738,389.68

58
 I.
Notes to Financial Statements
NOTE 1 - INVENTORY
Year 1 Year 2 Year 3 Year 4 Year 5
Raw Materials Inventory ₱25,583 ₱26,221 ₱27,807 ₱30,301 ₱33,937
Work-in-Process Inventory 0 0 0 0 0
Finished Goods Inventory 0 0 0 0 0
Total ₱25,583 ₱26,221 ₱27,807 ₱30,301 ₱33,937

NOTE 2 - PROPERTY AND EQUIPMENT

Year 1 Year 2 Year 3 Year 4 Year 5
Equipment, net ₱45,073 ₱41,747 ₱38,420 ₱35,093 ₱31,767
Furniture and Fixtures,net 240 180 120 60 0
Utensils/Tools,net 1835 1620 1405 1190 975
Leasehold Improvement,net 90000 80000 70000 60000 50000
Total ₱137,148 ₱123,547 ₱109,945 ₱96,343 ₱82,742

NOTE 3 - PARTNER`S CAPITAL

Year 1 Year 2 Year 3 Year 4 Year 5
Ayahao Capital, Beg ₱300,000 ₱421,726 ₱556,946 ₱708,618 ₱880,407
Add: Net Income 121726 135221 151672 171789 204379
Ayahao Capital, End 421726 556946 708618 880407 1084786

59
Ayuste Capital, Beg 300000 421726 556946 708618 880407
Add: Net Income 121726 135221 151672 171789 204379
Ayuste Capital, End 421726 556946 708618 880407 1084786

Mandocdoc Capital, Beg 300000 421726 556946 708618 880407

Add: Net Income 121726 135221 151672 171789 204379
Mandocdoc Capital, End 421726 556946 708618 880407 1084786

Melad Capital, Beg 300000 421726 556946 708618 880407

Add: Net Income 121726 135221 151672 171789 204379
Melad Capital, End 421726 556946 708618 880407 1084786

Veneracion Capital, Beg 300000 421726 556946 708618 880407

Add: Net Income 121726 135221 151672 171789 204379
Veneracion Capital, End 421726 556946 708618 880407 1084786
Total ₱2,108,628 ₱2,784,732 ₱3,543,091 ₱4,402,036 ₱5,423,931

NOTE 4 - SALES
Year 1 Year 2 Year 3 Year 4 Year 5
Tapalog Burger ₱387,124 ₱398,737 ₱426,649 ₱460,781 ₱516,075
Tocilog Burger 203617 209726 224406 242359 271442
Longga Burger 203617 209726 224406 242359 271442

60
Adobo Flakes Burger 525382 541144 579024 625346 700387
Dinuguan Burger 158369 163120 174538 188501 211121
Adobo Burger 387124 398737 426649 460781 516075
Sisig Burger 553034 569625 609499 658259 737250
Bicol Express Burger 221214 227850 243799 263303 294900
Total ₱2,639,480 ₱2,718,665 ₱2,908,971 ₱3,141,689 ₱3,518,692

NOTE 5 - GENERAL AND ADMINISTRATIVE EXPENSES

Year 1 Year 2 Year 3 Year 4 Year 5
13th Month Pay ₱11,000 ₱11,000 ₱11,000 ₱11,000 ₱11,000
Office HDMF Premium Expense 1200 1200 1200 1200 1200
Office PhilHealth Premium Expense 1650 1650 1650 1650 1650
Office Salaries and Wages 132000 132000 132000 132000 132000
Office SSS Premium Expense 9844 9844 9844 9844 9844
Office Supplies Expense 600 618 661 714 800
Permits and Licenses 0 12325 12325 12325 12325
Pre-Operating Expenses 59825 0 0 0 0
Total ₱216,119 ₱168,637 ₱168,680 ₱168,733 ₱168,818

61
NOTE 6 - SELLING EXPENSES
Year 1 Year 2 Year 3 Year 4 Year 5
13th Month Pay ₱5,500 ₱5,500 ₱5,500 ₱5,500 ₱5,500
Advertising Expense 16500 16995 18185 19639 21996
Store Depreciation Expense 2560 2560 2560 2560 2560
Store HDMF Premium Expense 1200 1200 1200 1200 1200
Store PhilHealth Premium Expense 1200 1200 1200 1200 1200
Store Rent Expense 180000 180000 180000 180000 180000
Store Salaries and Wages 66000 66000 66000 66000 66000
Store SSS Premium Expense 4982 4982 4982 4982 4982
Store Supplies 400 412 441 476 533
Store Utilities Expense 36000 37080 39676 42850 47992
Total ₱314,342 ₱315,929 ₱319,743 ₱324,408 ₱331,963

62
RATIO ANALYSIS

Liquidity Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Current Ratio
4.54 6.50 8.23 9.71 10.67
Quick Ratio
4.44 6.41 8.14 9.63 10.59
Profitability Ratio
Profit Margin 23% 25% 26% 27% 29%
Return on Sale 33% 36% 37% 39% 41%
Return on Total 63% 46% 38% 32% 30%
Assets
Return on Total 78% 38% 30% 25% 23%
Equity
Solvency Ratio
Equity Ratio 80% 86% 88% 90% 91%
Debt Ratio 20% 14% 12% 10% 9%

63
LIST OF ASSUMPTIONS

List of Assumptions
Initial Inventory 50% of ending raw materials
Ending Inventory Based on quantity produced per
month less the sales per month
Property and Equipment Based on the estimated purchase
cost of necessary equipment to be
acquired by the entity
Rental Deposit Based on the required 2-monthds
deposit and 1-month advance for the
stall and the commissary
Sales Revenue Collected in cash. Assumed growth
rate: 3%, 7%, 8%, and 12%. (Years 2
to 5, respectively)
Salaries Constant for the 5 years of operation
th
13 Month Pay Will be part of the operating expenses
for all employees
Stall Utilities Assumed growth rate: 3%, 7%, 8%,
and 12%. (Years 2 to 5, respectively)
Office Supplies Purchase and expense will be in 50-
50 ratio and expected to increase by:
3%, 7%, 8%, and 12%. (Years 2 to 5,
respectively)
Purchases All will be paid in cash
Advertising Expense Will be constant

**The company will use the ‘Just in Time’ inventory resulting to zero work in
process and finished goods investory.

64
 SCHEDULES

BURGER SHACK
Cost of goods Manufactured/Cost of Goods Sold
For the year 1-5
Year 1 Year 2 Year 3 Year 4 Year 5
RM, Beginning - 25,582.63 26,220.64 27,806.75 30,300.58
Add: Purchases 897,886.47 899,110.97 962,952.06 1,040,769.18 1,166,504.03
Total Raw Materials 897,886.47 924,693.60 989,172.70 1,068,575.92 1,196,804.60
Available
Less:RM, Ending 25,582.63 26,220.64 27,806.75 30,300.58 33,936.65
Cost of Raw Materials used 872,303.84 898,472.96 961,365.95 1,038,275.35 1,162,867.96
Cost of Direct Labor 248,310.40 248,310.40 248,310.40 248,310.40 248,310.40
Cost of Overhead 118,935.99 121,452.82 127,501.60 134,898.40 146,881.20
Total Manufacturing Cost 1,239,550.23 1,268,236.18 1,337,177.95 1,421,484.14 1,558,059.56
WIP, Beginning - - - - -
WIP, Ending - - - - -
Cost of Goods 1,239,550.23 1,268,236.18 1,337,177.95 1,421,484.14 1,558,059.56
Manufactured

FG, Beginning - - - - -
Cost of Good Available for 1,239,550.23 1,268,236.18 1,337,177.95 1,421,484.14 1,558,059.56
Sale
Less: FG, Ending - - - - -
Cost of Goods Sold 1,239,550.23 1,268,236.18 1,337,177.95 1,421,484.14 1,558,059.56

65
PAYROLL ACCOUNTING

PAYROLL ACCOUNTING
SSS Premium
General and Monthly Annual Tax SSS
Administrative Salary Salary Exemption ER/EC EE Monthly Contribution

1 Supervisor
11,000.00 132,000.00 50,000.00 820.30 409.70 1,220.00 9,843.60
TOTAL
11,000.00 132,000.00 50,000.00 820.30 409.70 1,220.00 9,843.60

SSS Premium
Monthly Annual Tax SSS
Selling
Salary Salary Exemption ER/EC EE Monthly Contribution

1 Cashier(Crew) 5,500.00
66,000.00 50,000.00 415.20 199.80 615.00 4,982.40
TOTAL 5,500.00 66,000.00 50,000.00 415.20 199.80 615.00 4,982.40

SSS Premium
Monthly Annual Tax SSS
Direct Labor
Salary Salary Exemption ER/EC EE Monthly Contribution

Head Cook 10,000.00

1 120,000.00 50,000.00 746.7 373.3 1110 8960.4
Assistant Cook 7,500.00
2 90,000.00 50,000.00 562.5 272.5 835 6750

TOTAL 17,500.00 210,000.00 100,000.00 1,309.20 645.80 1,945.00 15,710.40

66
 Philhealth Pagibig
Philhealth HDMF
ER EE Monthly Contribution ER EE Monthly Contribution

137.50 137.50 275.00 1,650.00 100.00 100.00 200.00 1,200.00

137.50 137.50 275.00 1,650.00 100.00 100.00 200.00 1,200.00

Philhealth Pagibig
Philhealth HDMF
ER EE Monthly Contribution ER EE Monthly Contribution

100.00 100.00 200.00 1,200.00 100.00 100.00 200.00 1,200.00

100.00 100.00 200.00 1,200.00 100.00 100.00 200.00 1,200.00

Philhealth Pagibig
Philhealth HDMF
ER EE Monthly Contribution ER EE Monthly Contribution
125 125 250 1500 100 100 200 1200
100 100 200 1200 100 100 200 1200

225.00 225.00 450.00 2,700.00 200.00 200.00 400.00 2,400.00

67
 Taxable Tax due per
Tax Due
Income month

119,306.40 18,361.28 1,530.11

119,306.40 18,361.28 1,530.11

Taxable Tax due per

Tax Due
Income month

58,617.60 6,792.64 566.05

58,617.60 6,792.64 566.05

Taxable Tax due per

Tax Due
Income month

108,339.60 16,167.92 1347.33

80,850.00 6,792.64 566.05

189,189.60 22,960.56 1,913.38

68