The financial study proves that the business is financially feasible.

It shows how profitable and effective the business is, its liquidity in meeting obligations and its ability to grow and expand. Through the financial statements reports and financial ratios that will be provided, it will help the people to have an understanding on the way the business operates financially. Major Assumptions 1. Income will be derived from the daily/monthly sales of the Gloss Shoe Shine.

2. The employees shall have the following basic salary

Personnel Manager Sales Personnel Production Staff Total Monthly salary

No. of personnels 1 2 4

Monthly salary Php 10,000 12,000 24,000 Php 46,000

3. Office supplies shall consist of the daily use items such as coupon bonds, fastener, paper clips etc. Purchase of office supplies shall be fixed at P7,500.00. The office supplies used shall be 90% of the total office supplies available for use.

4. Fringe benefits shall include the following: SSS Contribution Philhealth Contribution PAG-IBIG Contribution Rice subsidy Php18,000/year/employee Christmas Bonus Php 2,500/employee 13th month Php 6,000 (Manager); Php 4,000 (Sales Personnel & Production Staff)

5. Utilities required shall consist of Electricity, Water and Telecommunications. It is assumed that the electricity rate shall be Php 8.6959/KWh based on the current rate of BENECO and water is charged Php 35.60/cubic meter. The cost for telecommunications will be at P1,000.00/month. The electricity consumption is assumed to be 1800 KWh annually and Water

consumption is assumed to be 1800 cum. The inflation rate shall increase by 5% applicable to all utilities. 6. Business and Licenses are composed of SEC registration fee, City governments permit, community tax permit, business name registration, BIR clearance certification and business tax fee.

7. Depreciation Expense Charcoal Crushing Machine Large Frying Pan & Containers Computer Set Cabinet Tables & Chairs Waste Bins 10 years 8 years 5 years 5 years 5 years 5 years

8. Repairs and Maintenance for office equipment and furniture shall include the small repairs of bulbs, computers, etc and assumed to have an average cost of Php 2,000.00 per year.

9. Licenses and Business Taxes shall be based on the prevailing rates. 10. The partners drawing is assumed to be 10% of prior years share in net income.

Total Project Cost Items Capitalization Equipment Rent Registration Expenses(permits and licenses) Utility expenses Research and Development Projected/estimated costs Php 50,000.00 143,600.00 25,000.00 30,000.00 7,691.29 50,000.00

Totals

Php

306,291.29

SOURCE OF FINANCING In order to achieve the construction and the operating costs, the partners shall finance the project. The 4 partners of the business will contribute cash amounting to Php 80,000.00 each as their initial investment. The total investment would be Php 320,000.00.

FINANCIAL STATEMENTS The following financial statements provide an overview of the business financial condition in both short and long term. All the relevant information of the business enterprise is presented in order for the interested users understand the business operations. Financial Statements of the business is presented in the succeeding pages.