Chapter 3 Financial Feasibility A. Income Statement Singles Ave Income Statement As of May 1, 2012 2,158,800.0 0 585,960.00 1,572,840.0 0 163,092.

0 0 19,968.00 5,100.00 3,840.00 282,000.0 0 147,910.9 0 6,000.00 5,400.00 8,615.00

Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Operating Cost Salary Expense SSS PhilHealth Pag-ibig Rental Expense Utilities Expense Transportation Expense Supplies Expense Legal Expense Net Income Before Tax Less: Corporate Income Tax (35%) Net Income After Tax

641,925.90 930,914.10 325,819.94 605,094.16

*Actual Demand computation see table 3.1 Sales Revenue computation see table 3.2 Cost of Goods Sold computation see table 3.3 Salary Expense, SSS, PhilHealth, Pag-ibig computation see table 3.4 Rental Expense computation see table 3.5 Utilities Expense computation see table 3.6 Transportation Expense computation see table 3.7 Supplies Expense computation see table 3.8 Legal Expenses computation see table 3.9

B. Balance Sheet Single's Ave. Balance Sheet As of May 1, 2012 ASSETS Current Assets Cash Accounts Receivable Notes Receivable Inventories Office Supplies Total Current Assets Non Current Assets Long-term Investment Cash restricted for expansion Copyright Furnitures and fixtures Total Non Current Assets LIABILITIES Current Liablities 2,102,800.0 0 Accounts Payable 35,000.00 Short-term Notes Payable 21,000.00 Total Current Liabilities 25,200.00 4,570.00 2,188,570.0 0 Non Current Liabilities 75,000.00 Bonds Payable 250,000.00 TOTAL LIABILITIES 30,000.00 35,330.75 EQUITY 390,330.75 Barrios, Capital Calo, Capital Esculto, Capital Hablado, Capital Sta. Maria, Capital Less: Esculto, Drawing Reserves TOTAL EQUITY 2,578,900.7 TOTAL LIABILITIES AND 5 EQUITY 15,900.75 12,350.00 28,250.75

125,000.00 153,250.75

TOTAL ASSETS

480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 50,000.00 75,650.00 2,425,650.0 0 2,578,900.7 5

*Inventory computation see table 3.10 Cash, Accounts Receivable and Notes Receivable computation see table 3.11 Accounts Payable computation see table 3.12 Short-term Notes Payable computation see table 3.13 Office Supplies computations see table 3.14

APPENDIX Table 3.1 Computation of Actual Demand Attainable Demand 15,840 Competitors 9,680 Actual Demand 6,160 Actual Demand (monthly) 514 Table 3.2 Computation of Sales Revenue Quantity per month 514 Price 350.00 Sales per month 179,900.00 Sales per year 2,158,800.00 Table 3.3 Computation of Cost of Goods Sold Quantity Unit Price per month 514 65.00 33,410.00 514 30 15,420.00 per year 400,920.00 185,040.00 585,960.00

Raw Materials (T-shirt) Printing Total Table 3.4

Computation of Salary per month A. Saleslady Salary SSS Philhealth Pag-ibig Total B. Warehouse Keeper Salary SSS Philhealth Pag-ibig 4,000.00 416.00 100.00 80.00 3,404.00 4,000.00 416.00 100.00 80.00

per year 48,000.00 4,992.00 1,200.00 960.00 55,152.00 48,000.00 4,992.00 1,200.00 960.00

Total C. Graphic Artist Salary SSS Philhealth Pag-ibig Total D. Supervisor Salary SSS Philhealth Pag-ibig Total E. Totals Salary w/deduction SSS Philhealth Pag-ibig Total Table 3.5

3,404.00 3,000.00 312.00 100.00 60.00 2,528.00 5,000.00 520.00 125.00 100.00 4,255.00

55,152.00 36,000.00 3,744.00 1,200.00 720.00 30,336.00 60,000.00 6,240.00 1,500.00 1,200.00 51,060.00 163,092.00 19,968.00 5,100.00 3,840.00 192,000.00

Computation of Rental Expense per month Main Office and Outlet 16,000.00 Warehouse 7,500.00 Total rent per year Table 3.6

per year 192,000.00 90,000.00 282,000.00

Computation of Utilities Expense per month per year A. Electricity Main Office 6,883.29 82,599.48 Warehouse 2,962.62 35,551.44 Total Electricity 118,150.92 B. Water Main Office 300.00 3,600.00 Warehouse 200.00 2,400.00 Total Water 6,000.00

C. Communication Main Office Warehouse Total Communication Total Utilities Table 3.7

990.00 990.00

11,880.00 11,880.00 23,760.00 147,910.92

Computation of Transportation Expense per month per year Total Deliver 500.00 6,000.00 Table 3.8 Computation of Supplies Expense Item per month per year Bond paper (1 ream) 124.50 1,494.00 Folders (1 pack) 20.00 240.00 Envelope (1 pack) 12.50 150.00 Staple Wire (1 pack) 9.00 108.00 Journal (1 piece) 16.00 192.00 Ledger (1 piece) 18.00 216.00 Paper Bag (100 pieces) 250.00 3,000.00 Total 449.50 5,400.00 Table 3.9 Computation of Legal Expenses A. Breakdown of Mayor's Permit Sanitary Permit 900.00 Garbage Collection Fee 2,500.00 Occupational Tax 260.00 Police Clearance 905.00 Plumbing Inspection Fee 1,500.00 Electrical Inspection Fee 850.00 Building Permit Fee 500.00 Sign board Permit Fee 400.00 Total 7,815.00

B. Barangay Clearance Total Legal Expense Table 3.10

800.00 8,615.00

Computations of Inventory Beg. Inventory Add: Production Less: Sales Revenue Inventory End Table 3.11 Computations of Cash, Acounts Receivable and Notes Receivable 600 Number of shirts sold in cash 8 2,102,800.00 Number of shirts sold in Accounts Receivable 100 35,000.00 Number of shirts sold in Notes Receivable 60 21,000.00 616 Total Number of shirts sold 8 2,158,800.00 Table 3.12 Computations of Accounts Payable Office Table Office Chair Steel Cabinet Wooden Cabinet Total Accounts Payable Table 3.13 Computations of Short-term Notes Payable Counter Table Counter Chair Cash Register Total Short-term Notes Payable Table 3.14 5,000.00 1,600.00 5,800.00 3,500.75 15,900.75 0.00 2,184,000.00 2,158,800.00 25,200.00

5,000.00 1,850.00 5,500.00 12,350.00

Computation of Office Supplies Main Office and Store Office Supplies Warehouse Office Supplies Total Office Supplies

2,570.00 2,000.00 4,570.00