1.

Pre-operating Statement

1.1 balance sheet

1.2 Cashflow using Direct method

1.2.1 Pre-operating expenses (registration expenses, permits reg)

2. Financial Assumptions

1. Capital assumption (ex. Assumption on hares of stocks)

2.2 Revenue Assumption

2.3 PPE Assumption or Actual

2.4 Salary assumption( yearly incrrase)

Salary Matrix

-Number of persons

-positions

-sal per month

-deductions

- net salary➡️ total salary per year

➡️papasok sa cashflow as payment of salaries

•Last month deductions papasok as Liabilities for the secone year ex. Ung mga taxes na due on dec or if
quarterly last 3 months is payable on the next year

•Increase in light ans power maybe 3% to 5%

• lahat ng major expenses ay may assumption

•make a schedule of salaries, depreciation, etc.

•RETAINED EARNINGS should not be above capital stocks. If over, declare dividends or find new
investment

FINANCIAL RATIOS

1. LIQUIDITY
2. STABILITY
3. PROFITABILITY
4. QUICK RATIO
5. CURRENT RATIO
6. INVENTORY RATIO, TURNOVER
7. NET INCOME RATIO
8. RETURN ON ASSET
9. RETURN ON INVESTMENT AT LEAST 20% TO BE FEASIBILE8