Financial Assumption

Regular sales

 All sales are on cash basis

 Sales will increase 6% per year

Purchases

 Purchase price increased by 1% per year


 *ACCOUNTS PAYABLE
ARE ESTIMATED TO BE
20% OF PURCHASES

Inventory

 Ending materials inventory is equal to 10% of the materials needed for the next month.
 Ending finished goods is maintained at 5% of currents year number of goods to be sold.
 All raw materials put into production are finished within the day, therefore the company will not
account for Work in Process.

Investment interest

 5% every june 30

Depreciable Assets

 All assets used straight line method

Look for chapter 3

Repair and maintenance cost

 It will remain every year amount to Php10,000

Utilities Expense

kiosk
electricity - 4000
water- 2000
tel- 2800

factory n plant

electricity - 35k
water - 6k
telephone - 2900
 office
electricity - 15k
water - 3k
telephone - 4400

electricity - 54,000
water - 11,000
telephone - 10,100

total : 75,100Dividends Payable

 Dividends declared are based on 60% of net income