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CHAPTER V

FINANCIAL ASPECT

The financial aspect of this feasibility study shows the financial projections

on the outcome of the proposed business for the first five years of operation. This

aspect shows the financial requirements of the business, the feasible means to

finance the proposed business or the possible source of financing and how this will

be utilize in its operation. Projected Financial Statements for five years will also be

provided to show the forecasts on financial performance (Projected Statement of

Comprehensive Income), position (Statement of Financial Position), cash flow of

the activities (Projected Statement of Cash flow), break down on changes in

owners’ interest and in the application of retained profit or surplus from one

accounting period to the next (Projected Statements of Changes in Owner’s Equity),

other information pertaining to the operations and financial position (Notes to

Financial Statements) and introduction of a several financial ratios as well as the

analysis thereof will be given (Financial Ratio Analysis and Breakeven point

Analysis). This shows if the business can generate the kind of scalable profit that

warrants its success.

I. Objectives

Financial Aspect is essential in making this feasibility study that will help

provide a clear understanding of the proposed business' intended outcome or

success and just as how it will be managed in the forecasted future. Hence, this

perspective points its objectives:

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1. To have a mission driven core values in regard to customer interaction, and

responsibility to the community to be able to create a positive business

culture.

2. To recognize the financial source for the business operation;

3. To expound the financial presumptions in preparing the annual reports;

4. To assess the results of the annual reports using the financial ratios and

provide interpretations for decision-making purposes.

5. To be able to determine the financial condition of the owner(s) and its

capacity to contribute resources as a principal source of financing for the

business.

6. To prepare the business for growth by making processes that effectively

deal with a developing marketplace and create a dynamic organization that

is ready to meet the challenges of the business industry.

II. Major Assumptions

1. The Financial Statements will be composed of Projected Statement of

Financial Position (Balance Sheet), Projected Statements of Comprehensive

Income, Projected Statements of Changes in Owner’s Equity, Projected

Statements of Cash Flow and Notes to Financial Statements.

2. The preparation of Financial Statements will be set up based on Philippine

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Financial Reporting Standards (PFRS) and the guidelines given by the

Generally Accepted Accounting Principles (GAAP).

3. The presentation of Financial Statements shall be faithfully represented.

4. All relevant regulatory prerequisites to the business will be entirely adhered

to.
5. It is also assumed that consumers will keen to buy our products that will

generate sufficient sales to make profit for the long run.

III. Supplementary Assumptions

As to Operations

The proposed business shall commence to business operations on January

2021 upon the time that the building and place as a whole is brought into condition

intended by the management (when the business is ready to provide the services

that would satisfy the customers), and shall have September 30 as the end of its

fiscal year.

As to operation area

The land will be contributed by the three partners at the organization of

partnership and the buildings will be constructed and depreciated using the straight-

line method and estimated useful lives.

IV. Sources of Financing

Following are the attainable start-up financial schemes that the proponents are

taking into consideration to finance the business venture:

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a. The sources of financing for the organization of the business will be

from the individual contributions of each partner which are from

their savings, personal loans, and owned non-cash assets.

i. Land (Non-cash asset) contribution from three partners who

are co- owners of the asset.

ii. Cash contribution from the other two partners amounting to

P12,000,000 each.

b. The partnership will obtain a bank loan from commercial banks to

finance the overall projected cost and other financial requirements of

the proposed business to continue operating.

The researchers proposed option I as the best choice for this project’s funding

as this eliminates the inconvenience of applying for a loan and the need to pay for a

finance cost (interest expense) to finance the project.

The total initial investment are cash amounting to P24,000,000 and Land

measured at the agreed value of P60,000,000.

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V. Financial Statements

1. Projected Statements of Income and Expenses

LITTLE DAEHANMINGGUK
PROJECTED INCOME STATEMENT
FOR THE YEARS ENDED 2021, 2022, 2023, 2024 & 2025

Schedule 2021 2022 2023 2024 2025

Revenue 1 ₱ 12,534,380.00 ₱ 12,758,834.00 ₱ 12,988,460.00 ₱ 13,221,695.00 ₱ 13,460,560.00
Cost of Service 2 3,985,538.19 3,610,013.63 3,685,200.03 3,762,356.30 3,841,534.07
Gross Profit ₱ 8,548,841.81 ₱ 9,148,820.37 ₱ 9,303,259.97 ₱ 9,459,338.70 ₱ 9,619,025.93
Other Income ₱ 1,679,300.00 ₱ 1,696,266.00 ₱ 1,712,678.00 ₱ 1,729,644.00 ₱ 1,746,610.00
Operating Expenses 3 935,860.79 947,271.06 967,527.33 1,110,889.64 1,009,645.92
General and Administrative Expenses 4 829,906.88 848,421.36 867,400.76 886,877.42 906,864.36
Profit Before Tax ₱ 8,462,374.14 ₱ 9,049,393.95 ₱ 9,181,009.88 ₱ 9,191,215.64 ₱ 9,449,125.64
Income Tax (30%) 2,538,712.24 2,714,818.18 2,754,302.97 2,757,364.69 2,834,737.69
Net Income ₱ 5,923,661.90 ₱ 6,334,575.76 ₱ 6,426,706.92 ₱ 6,433,850.95 ₱ 6,614,387.95
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2. Projected Statements of Changes in Owner’s Equity

LITTLE DAEHANMINGGUK
PRO JECTED STATEMENT O F C HANGES IN EQ UITY
AS O F THE YEARS ENDED 2021, 2022, 2023, 2024 & 2025
C AMPILAN DUTERTE HADI IGLESIA LADJAGAIS TO TAL

C apital , Jan uary 1, 2021 ₱ 20,000,000.00 ₱ 20,000,000.00 ₱ 20,000,000.00 ₱ 12,000,000.00 ₱ 12,000,000.00 ₱ 84,000,000.00
Add: Share on Profit 1,184,732.38 1,184,732.38 1,184,732.38 1,184,732.38 1,184,732.38 5,923,661.90
Additional Investment s - - - - - -
Less: Drawings - - - - - -
C apital , De ce mbe r 31, 2021 ₱ 21,184,732.38 ₱ 21,184,732.38 ₱ 21,184,732.38 ₱ 13,184,732.38 ₱ 13,184,732.38 ₱ 89,923,661.90

C apital , Jan uary 1, 2022 ₱ 21,184,732.38 ₱ 21,184,732.38 ₱ 21,184,732.38 ₱ 13,184,732.38 ₱ 13,184,732.38 ₱ 89,923,661.90
Add: Share on Profit 1,266,915.15 1,266,915.15 1,266,915.15 1,266,915.15 1,266,915.15 6,334,575.76
Additional Investment s - - - - - -
Less: Drawings - - - - - -
C apital , De ce mbe r 31, 2022 ₱ 22,451,647.53 ₱ 22,451,647.53 ₱ 22,451,647.53 ₱ 14,451,647.53 ₱ 14,451,647.53 ₱ 96,258,237.66

C apital , Jan uary 1, 2023 ₱ 22,451,647.53 ₱ 22,451,647.53 ₱ 22,451,647.53 ₱ 14,451,647.53 ₱ 14,451,647.53 ₱ 96,258,237.66
Add: Share on Profit 1,285,341.38 1,285,341.38 1,285,341.38 1,285,341.38 1,285,341.38 ₱ 6,426,706.92
Additional Investment s - - - - - -
Less: Drawings - - - - - -
C apital , De ce mbe r 31, 2023 ₱ 23,736,988.92 ₱ 23,736,988.92 ₱ 23,736,988.92 ₱ 15,736,988.92 ₱ 15,736,988.92 ₱ 102,684,944.58

C apital , Jan uary 1, 2024 ₱ 23,736,988.92 ₱ 23,736,988.92 ₱ 23,736,988.92 ₱ 15,736,988.92 ₱ 15,736,988.92 ₱ 102,684,944.58
Add: Share on Profit 1,286,770.19 1,286,770.19 1,286,770.19 1,286,770.19 1,286,770.19 ₱ 6,433,850.95
Additional Investment s - - - - - -
Less: Drawings - - - - - -
C apital , De ce mbe r 31, 2024 ₱ 25,023,759.11 ₱ 25,023,759.11 ₱ 25,023,759.11 ₱ 17,023,759.11 ₱ 17,023,759.11 ₱ 109,118,795.53

C apital , Jan uary 1, 2025 ₱ 25,023,759.11 ₱ 25,023,759.11 ₱ 25,023,759.11 ₱ 17,023,759.11 ₱ 17,023,759.11 ₱ 109,118,795.53
Add: Share on Profit 1,322,877.59 1,322,877.59 1,322,877.59 1,322,877.59 1,322,877.59 1,322,877.59
Additional Investment s - - - - - -
Less: Drawings - - - - - -
C apital , De ce mbe r 31, 2025 ₱ 26,346,636.70 ₱ 26,346,636.70 ₱ 26,346,636.70 ₱ 18,346,636.70 ₱ 18,346,636.70 ₱ 115,733,183.48
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3. Projected Statements of Cash Flow

LITTLE DAEHANMINNGUK
PROJECTED STATEMENT OF CASH FLOW
AS OF THE YEAR ENDED 2021, 2022, 2023, 2024 & 2025
Schedule 2021 2022 2023 2024 2025
Cash flow form Operating Activities:
Net Income ₱ 5,923,661.90 ₱ 6,334,575.76 ₱ 6,426,706.92 ₱ 6,433,850.95 ₱ 6,614,387.95
Add back: Depreciation 15 766,277.65 766,277.65 766,277.65 766,277.65 766,277.65
Net Cash flow form Operating Activities: ₱ 6,689,939.55 ₱ 7,100,853.41 ₱ 7,192,984.57 ₱ 7,200,128.60 ₱ 7,380,665.60

Cash flow from Investing Activities:

Acquisition of Property, Plant and Equipment 8 15,082,285.17 - - - -
Net Cash flow form Investing Activities: ₱ 15,082,285.17 ₱ - ₱ - ₱ - ₱ -

Increas(decrease) in Cash and Cash Equivalent - 8,392,345.62 7,100,853.41 7,192,984.57 7,200,128.60 7,380,665.60
Cash and Cash Equivalents, beginning 24,000,000.00 15,607,654.38 22,708,507.79 29,901,492.36 37,101,620.96
Cash and Cash Equivalents, ending ₱ 15,607,654.38 ₱ 22,708,507.79 ₱ 29,901,492.36 ₱ 37,101,620.96 ₱ 44,482,286.56
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4. Projected Statements of Financial Position

LITTLE DAEHANMINGGUK
PROJECTED STATEMENT OF FINANCIAL POSITION
AS OF THE YEAR ENDED 2021, 2022, 2023, 2024 & 2025
Assets
Current Assets
Cash 15,607,654.38 22,708,507.79 29,901,492.36 37,101,620.96 44,482,286.56
Total Current Assets ₱ 15,607,654.38 ₱ 22,708,507.79 ₱ 29,901,492.36 ₱ 37,101,620.96 ₱ 44,482,286.56
Non-Current Assets
Property, Plant and Equipment 15,082,285.17 15,082,285.17 15,082,285.17 15,082,285.17 15,082,285.17
Less: Accumulated Deprecition 766,277.65 1,532,555.30 2,298,832.95 3,065,110.60 3,831,388.25
Land 60,000,000.00 60,000,000.00 60,000,000.00 60,000,000.00 60,000,000.00
Total Non-Current Assets ₱ 74,316,007.52 ₱ 73,549,729.87 ₱ 72,783,452.22 ₱ 72,017,174.57 ₱ 71,250,896.92
TOTAL CURRENT AND NON-CURRENT ASSETS ₱ 89,923,661.90 ₱ 96,258,237.66 ₱ 102,684,944.58 ₱ 109,118,795.53 ₱ 115,733,183.48

Liabilities and Equity

Current Liabilities - - - - -
Partnership Equity
Campilan, Capital 21,184,732.38 22,451,647.53 23,736,988.92 25,023,759.11 26,346,636.70
Duterte, Capital 21,184,732.38 22,451,647.53 23,736,988.92 25,023,759.11 26,346,636.70
Hadi, Capital 21,184,732.38 22,451,647.53 23,736,988.92 25,023,759.11 26,346,636.70
Iglesia, Capital 13,184,732.38 14,451,647.53 15,736,988.92 17,023,759.11 18,346,636.70
Ladjagais, Capital 13,184,732.38 14,451,647.53 15,736,988.92 17,023,759.11 18,346,636.70
Total Equity ₱ 89,923,661.90 ₱ 96,258,237.66 ₱ 102,684,944.58 ₱ 109,118,795.53 ₱ 115,733,183.48
TOTAL LIABILITIES AND EQUITY ₱ 89,923,661.90 ₱ 96,258,237.66 ₱ 102,684,944.58 ₱ 109,118,795.53 ₱ 115,733,183.48
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5. Notes to Financial Statements

Note 4- Property, Plant and Equipment

Schedule 2021 2022 2023 2024 2025

Building 9 ₱ 11,530,307.15 ₱ 11,530,307.15 ₱ 11,530,307.15 ₱ 11,530,307.15 ₱ 11,530,307.15

Repairs and Maintenance Tools 10 2,284.75 2,284.75 2,284.75 2,284.75 2,284.75
Furniture and Fixture 11 597,191.33 597,191.33 597,191.33 597,191.33 597,191.33
Machinery and Equipment 12 870,803.94 870,803.94 870,803.94 870,803.94 870,803.94
Clothing Apparel 13 88,434.00 88,434.00 88,434.00 88,434.00 88,434.00
Bedding Supplies 14 118,264.00 118,264.00 118,264.00 118,264.00 118,264.00
Land Improvements 15 1,875,000.00 1,875,000.00 1,875,000.00 1,875,000.00 1,875,000.00
TOTAL ₱ 15,082,285.17 ₱ 15,082,285.17 ₱ 15,082,285.17 ₱ 15,082,285.17 ₱ 15,082,285.17

Schedules and computations:

Schedule 1 - Total Revenue

Schedule 2021 2022 2023 2024 2025

Revenue from walk-in customers 1.8 ₱ 7,628,780.00 ₱ 7,724,900.00 ₱ 7,822,250.00 ₱ 7,920,800.00 ₱ 8,020,600.00
Revenue from Inn 1.1 ; 1.3 ₱ 4,905,600.00 ₱ 5,033,934.00 ₱ 5,166,210.00 ₱ 5,300,895.00 ₱ 5,439,960.00
TOTAL REVENUE ₱ 12,534,380.00 ₱ 12,758,834.00 ₱ 12,988,460.00 ₱ 13,221,695.00 ₱ 13,460,560.00
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Schedule - Other Income
Schedule 2021 2022 2023 2024 2025

Revenue from KTV services 1.4 438,000.00 451,140.00 459,900.00 473,040.00 486,180.00
Revenue from Hanbok rentals 1.5 191,300.00 195,126.00 202,778.00 206,604.00 210,430.00
Revenue from Lease 1.6 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00
Revenue from event hosting 1.7 450,000.00 450,000.00 450,000.00 450,000.00 450,000.00
TOTAL REVENUE ₱ 1,679,300.00 ₱ 1,696,266.00 ₱ 1,712,678.00 ₱ 1,729,644.00 ₱ 1,746,610.00

Schedule 1.1 Projected Revenune for Single Room

Assumption: Price increases by 2.62% every year due to inflation
60% of the total capacity is used for the computation of revenue.
2021 2022 2023 2024 2025

Annual Capacity (in rooms) 438 438 438 438 438

Rate per room ₱ 1,200.00 ₱ 1,231.00 ₱ 1,264.00 ₱ 1,297.00 ₱ 1,331.00
Total Revenue ₱ 525,600.00 ₱ 539,178.00 ₱ 553,632.00 ₱ 568,086.00 ₱ 582,978.00

Schedule 1.2 Projected Revenune for Double Room

Assumption: Price increases by 2.62% every year due to inflation
60% of the total capacity is used for the computation of revenue.
2021 2022 2023 2024 2025

Annual Capacity (in rooms) 657 657 657 657 657

Rate per room ₱ 2,000.00 ₱ 2,052.00 ₱ 2,106.00 ₱ 2,161.00 ₱ 2,218.00
Total Revenue ₱ 1,314,000.00 ₱ 1,348,164.00 ₱ 1,383,642.00 ₱ 1,419,777.00 ₱ 1,457,226.00
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Schedule 1.3 Projected Revenune for Family Room
Assumption: Price increases by 2.62% every year due to inflation
60% of the total capacity is used for the computation of revenue.
2021 2022 2023 2024 2025

Annual Capacity (in rooms) 876 876 876 876 876

Rate per room ₱ 3,500.00 ₱ 3,592.00 ₱ 3,686.00 ₱ 3,782.00 ₱ 3,881.00
Total Revenue ₱ 3,066,000.00 ₱ 3,146,592.00 ₱ 3,228,936.00 ₱ 3,313,032.00 ₱ 3,399,756.00

Schedule 1.4 Projected Revenune from KTV

Assumption: Price increases by 2.62% every year due to inflation
30% of the total annual capacity (14,600 hours) is used to compute for the revenue.
2021 2022 2023 2024 2025

Annual Capacity (in hours) 4,380 4,380 4,380 4,380 4,380

Rate per hour ₱ 100.00 ₱ 103.00 ₱ 105.00 ₱ 108.00 ₱ 111.00
Total Revenue ₱ 438,000.00 ₱ 451,140.00 ₱ 459,900.00 ₱ 473,040.00 ₱ 486,180.00

Schedule 1.5 Projected Revenune from Hanbok Rentals

Assumption: Price increases by 2.62% every year due to inflation
30% of the total annual capacity (12,775 dresses) is used to compute for the revenue.
2021 2022 2023 2024 2025

Annual Capacity (no. of dresses) 3,826 3,826 3,826 3,826 3,826

Rate per dress ₱ 50.00 ₱ 51.00 ₱ 53.00 ₱ 54.00 ₱ 55.00
Total Revenue ₱ 191,300.00 ₱ 195,126.00 ₱ 202,778.00 ₱ 206,604.00 ₱ 210,430.00
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Schedule 1.6 Projected Revenue from Lease
Assumption: Rent is fixed as per agreement

2021 2022 2023 2024 2025

Number of Months (per year) 12 12 12 12 12

Rent Charge ₱ 50,000.00 ₱ 50,000.00 ₱ 50,000.00 ₱ 50,000.00 ₱ 50,000.00
Total Revenue ₱ 600,000.00 ₱ 600,000.00 ₱ 600,000.00 ₱ 600,000.00 ₱ 600,000.00

Schedule 1.7 Projected Revenue from Event Hosting

Assumption:
1. Rate per hour is fixed.
2. The function hall is estimated to cater 10 events in a month to be conservative.
3. Every event is estimated to last for 5 hours.
4. 30% of the total annual capacity is used to compute for the revenue.
2021 2022 2023 2024 2025

Annual Capacity (in hours) 180 180 180 180 180

Rent Charge ₱ 2,500.00 ₱ 2,500.00 ₱ 2,500.00 ₱ 2,500.00 ₱ 2,500.00
Total Revenue ₱ 450,000.00 ₱ 450,000.00 ₱ 450,000.00 ₱ 450,000.00 ₱ 450,000.00

Schedule 1.8 Projected Revenue from Walk-in Customers

Assumption: Charge per head is fixed.

2021 2022 2023 2024 2025

Number of Customers (per year) 152,576 154,498 156,445 158,416 160,412

Charge per head ₱ 50.00 ₱ 50.00 ₱ 50.00 ₱ 50.00 ₱ 50.00
Total Revenue ₱ 7,628,800.00 ₱ 7,724,900.00 ₱ 7,822,250.00 ₱ 7,920,800.00 ₱ 8,020,600.00
Total Annual Capacity of Inn
Total Capacity Operating Days Annual Service
(a) (b) (c= a x b)
2021
Single Room 2 365 730
Double Family 3 365 1,095
Family Room 4 365 1,460
TOTAL 3,285

2022
Single Room 2 365 730
Double Family 3 365 1,095
Family Room 4 365 1,460
TOTAL 3,285

2023
Single Room 2 365 730
Double Family 3 365 1,095
Family Room 4 365 1,460
TOTAL 3,285

2024
Single Room 2 365 730
Double Family 3 365 1,095
Family Room 4 365 1,460
TOTAL 3,285

2025
Single Room 2 365 730
Double Family 3 365 1,095
Family Room 4 365 1,460
TOTAL 3,285

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Schedule 2 - Cost of Service
Schedule 2021 2022 2023 2024 2025

Direct Labor 2.1 762,336.00 331,070.88 339,201.34 347,544.82 356,106.89

Overhead 2.2 3,223,202.19 3,278,942.75 3,345,998.69 3,414,811.49 3,485,427.18

TOTAL COST OF SERVICE ₱ 3,985,538.19 ₱ 3,610,013.63 ₱ 3,685,200.03 ₱ 3,762,356.30 ₱ 3,841,534.07

Schedule 2.1- Direct Labor

Assumptions:
1. Direct Labor includes 80% salary of Front Desk Agents.
2. Salaries increases by 2.62% every year.
Schedule 2021 2022 2023 2024 2025

Salaries Expense 5.5 ₱ 762,336.00 ₱ 756,733.44 ₱ 775,317.35 ₱ 794,388.15 ₱ 813,958.61

TOTAL ₱ 762,336.00 ₱ 331,070.88 ₱ 339,201.34 ₱ 347,544.82 ₱ 356,106.89

Schedule 2.2 - Overhead

Assumptions:
1. Overhead includes 80% salaries to Operations Manager, Maintenance Personnel, Security Personnel & Housekeeping.
2. Salaries increases by 2.62% every year.
3. Overhead includes 80% of Utilities.
4. Overhead includes 80% of Supplies.
5. Overhead includes 80% of the depreciation of Building, Repairs and Maintenance Tools, Furniture and Fixtures, and Machinery and Equipment.
6. Overhead includes 60% of the depreciation of Land Improvements.
Schedule 2021 2022 2023 2024 2025

Salaries Expense 5.3, 5.6, 5.7 & 5.8 ₱ 1,975,889.76 ₱ 2,013,642.59 ₱ 2,062,239.50 ₱ 2,112,109.66 ₱ 2,163,286.42
Utilities Expense 6 635,162.11 651,803.36 668,880.61 686,405.28 704,389.10
Supplies Expense 7 51,392.71 52,739.20 54,120.97 55,538.94 56,994.06
Depreciation Expense (A-5) 16 493,257.61 493,257.61 493,257.61 493,257.61 493,257.61
Depreciation Expense (A-6) 16 67,500.00 67,500.00 67,500.00 67,500.00 67,500.00
TOTAL ₱ 3,223,202.19 ₱ 3,278,942.75 ₱ 3,345,998.69 ₱ 3,414,811.49 ₱ 3,485,427.18

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Schedule 3 - Operating Expense
Assumptions:
1. Includes 20% salaries to Operations Manager, Maintenance Personnel, Security Personnel & Housekeeping.
2. Includes 20% salaries to Front Desk Agents.
3. Salaries increases by 2.62% every year.
4. Includes total depreciation of Clothing Apparel
5. Includes 10% of the depreciation of Building, Repairs and Maintenance Tools, Furniture and Fixtures & Machineries and Equipment.
6. Overhead includes 40% of the depreciation of Land Improvements.
7. Includes 15% of utilities.
8. Includes 15% of Supplies.
Schedule 2021 2022 2023 2024 2025

Salaries Expense (A-1) 5.3, 5.6, 5.7 & 5.8 ₱ 493,972.44 ₱ 503,410.65 ₱ 515,559.88 ₱ 528,027.42 ₱ 540,821.60
Salaries Expense (A-2) 5.5 190,584.00 189,183.36 193,829.34 198,597.04 203,489.65
Depreciation Expense (A-4) 14 15,918.12 15,918.12 15,918.12 31,836.24 15,918.12
Depreciation Expense (A-5) 14 61,657.20 61,657.20 61,657.20 123,314.40 61,657.20
Depreciation Expense (A-6) 14 45,000.00 45,000.00 45,000.00 90,000.00 45,000.00
Utilities Expense 6 119,092.90 122,213.13 125,415.11 128,700.99 132,072.96
Supplies Expense 7 9,636.13 9,888.60 10,147.68 10,413.55 10,686.39
TOTAL ₱ 935,860.79 ₱ 947,271.06 ₱ 967,527.33 ₱ 1,110,889.64 ₱ 1,009,645.92

Schedule 4 - General and Administrative Expense

Assumptions:
1. Expenses increase by 2.62% every year
2. Includes total salaries of General Manager, Administrative Manager, and Accountant.
3. Includes 5% of utilities expenses.
4. Includes 5% of supplies expenses.
5. Includes 10% of the depreciation of Building, Repairs and Maintenance Tools, Furniture and Fixtures & Machineries and Equipment.
Schedule 2021 2022 2023 2024 2025

Advertising Espense 4.1 ₱ 15,750.00 ₱ 16,162.65 ₱ 16,565.95 ₱ 16,979.81 ₱ 17,404.52

Salaries Expense 5.1, 5.2, & 5.4 709,590.00 726,567.60 743,990.01 761,868.89 780,216.20
Utilities Expense 6 39,697.63 40,737.71 41,805.04 42,900.33 44,024.32
Supplies Expense 7 3,212.04 3,296.20 3,382.56 3,471.18 3,562.13
Depreciation 16 61,657.20 61,657.20 61,657.20 61,657.20 61,657.20
TOTAL ₱ 829,906.88 ₱ 848,421.36 ₱ 867,400.76 ₱ 886,877.42 ₱ 906,864.36

Schedule 4.1 - Advertising Expense

2021 2022 2023 2024 2025
Cost/pcs
Pamplets/Flier ₱ 15.00 ₱ 15,000.00 ₱ 15,393.00 ₱ 15,796.30 ₱ 16,210.16 ₱ 16,634.87
Tarpaulin 2.5 x 4 ft. 150.00 750.00 769.65 769.65 769.65 769.65

TOTAL ₱ 15,750.00 ₱ 16,162.65 ₱ 16,565.95 ₱ 16,979.81 ₱ 17,404.52

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Assumptions:
1. Salaries increases by 2.62% every year,

Schedule 5.1 Salaries and Benefits of General Manager (1)

2021 2022 2023 2024 2025

Salaries ₱ 288,000.00 ₱ 295,545.60 ₱ 303,288.89 ₱ 311,235.06 ₱ 319,389.42

SSS Contribution 19,560.00 19,560.00 19,560.00 19,560.00 19,560.00
Philhealth Contribution 3,960.00 3,960.00 3,960.00 3,960.00 3,960.00
Pag-IBIG Contribution 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
TOTAL ₱ 312,720.00 ₱ 320,265.60 ₱ 328,008.89 ₱ 335,955.06 ₱ 344,109.42

Schedule 5.2 Salaries and Benefits Administrative Manager (1)

2021 2022 2023 2024 2025

Salaries ₱ 180,000.00 ₱ 184,716.00 ₱ 189,555.56 ₱ 194,521.91 ₱ 199,618.39

SSS Contribution 14,760.00 14,760.00 14,760.00 14,760.00 14,760.00
Philhealth Contribution 2,475.00 2,475.00 2,475.00 2,475.00 2,475.00
Pag-IBIG Contribution 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
TOTAL ₱ 198,435.00 ₱ 203,151.00 ₱ 207,990.56 ₱ 212,956.91 ₱ 218,053.39

Schedule 5.3 Salaries and Benefits of Operations Manager (1)

2021 2022 2023 2024 2025

Salaries ₱ 180,000.00 ₱ 184,716.00 ₱ 189,555.56 ₱ 194,521.91 ₱ 199,618.39

SSS Contribution 14,760.00 14,760.00 14,760.00 14,760.00 14,760.00
Philhealth Contribution 2,475.00 2,475.00 2,475.00 2,475.00 2,475.00
Pag-IBIG Contribution 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
TOTAL ₱ 198,435.00 ₱ 203,151.00 ₱ 207,990.56 ₱ 212,956.91 ₱ 218,053.39

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Schedule 5.4 Salaries and Benefits of Accountant (1)
2021 2022 2023 2024 2025

Salaries ₱ 180,000.00 ₱ 184,716.00 ₱ 189,555.56 ₱ 194,521.91 ₱ 199,618.39

SSS Contribution 14,760.00 14,760.00 14,760.00 14,760.00 14,760.00
Philhealth Contribution 2,475.00 2,475.00 2,475.00 2,475.00 2,475.00
Pag-IBIG Contribution 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
TOTAL ₱ 198,435.00 ₱ 203,151.00 ₱ 207,990.56 ₱ 212,956.91 ₱ 218,053.39

Schedule 5.5 Salaries and Benefits of Front Desk Agents (6)

2021 2022 2023 2024 2025

Salaries ₱ 864,000.00 ₱ 886,636.80 ₱ 909,866.68 ₱ 933,705.19 ₱ 958,168.27

SSS Contribution 69,840.00 46,560.00 46,560.00 46,560.00 46,560.00
Philhealth Contribution 11,880.00 7,920.00 7,920.00 7,920.00 7,920.00
Pag-IBIG Contribution 7,200.00 4,800.00 4,800.00 4,800.00 4,800.00
TOTAL ₱ 952,920.00 ₱ 945,916.80 ₱ 969,146.68 ₱ 992,985.19 ₱ 1,017,448.27

Schedule 5.6 Salaries and Benefits of Maintenance Personnel (3)

2021 2022 2023 2024 2025

Salaries ₱ 389,880.00 ₱ 400,094.86 ₱ 410,577.34 ₱ 421,334.47 ₱ 432,373.43

SSS Contribution 27,720.00 27,720.00 27,720.00 27,720.00 27,720.00
Philhealth Contribution 4,692.60 4,692.60 4,692.60 4,692.60 4,692.60
Pag-IBIG Contribution 3,600.00 3,600.00 3,600.00 3,600.00 3,600.00
TOTAL ₱ 425,892.60 ₱ 436,107.46 ₱ 446,589.94 ₱ 457,347.07 ₱ 468,386.03

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Schedule 5.7 Salaries and Benefits of Security Personnel (5)
2021 2022 2023 2024 2025

Salaries ₱ 649,800.00 ₱ 666,824.76 ₱ 684,295.57 ₱ 702,224.11 ₱ 720,622.38

SSS Contribution 46,200.00 36,960.00 36,960.00 36,960.00 36,960.00
Philhealth Contribution 7,821.00 6,256.80 6,256.80 6,256.80 6,256.80
Pag-IBIG Contribution 6,000.00 4,800.00 4,800.00 4,800.00 4,800.00
TOTAL ₱ 709,821.00 ₱ 714,841.56 ₱ 732,312.37 ₱ 750,240.91 ₱ 768,639.18

Schedule 5.8 Salaries and Benefits of Housekeeping (8)

2021 2022 2023 2024 2025

Salaries ₱ 1,039,680.00 ₱ 1,066,919.62 ₱ 1,094,872.91 ₱ 1,123,558.58 ₱ 1,152,995.81

SSS Contribution 73,920.00 73,920.00 73,920.00 73,920.00 73,920.00
Philhealth Contribution 12,513.60 12,513.60 12,513.60 12,513.60 12,513.60
Pag-IBIG Contribution 9,600.00 9,600.00 9,600.00 9,600.00 9,600.00
TOTAL ₱ 1,135,713.60 ₱ 1,162,953.22 ₱ 1,190,906.51 ₱ 1,219,592.18 ₱ 1,249,029.41

Schedule 6 - Utilities Expense

Assumptions:
1. Utilities expense increases by 2.62% every year.

2021 2022 2023 2024 2025

Electricity ₱ 712,592.64 ₱ 731,262.57 ₱ 750,421.65 ₱ 770,082.69 ₱ 790,258.86

Water 45,360.00 46,548.43 47,768.00 49,019.52 50,303.83
PLDT fiber ( with landline) 36,000.00 36,943.20 37,911.11 38,904.38 39,923.68

TOTAL UTILITIES EXPENSE ₱ 793,952.64 ₱ 814,754.20 ₱ 836,100.76 ₱ 858,006.60 ₱ 880,486.37

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Schedule 7 - Supplies Expense
Assumptions:
1. Supplies Expense increases by 2.62% every year.
2. Supplies are expected to be consumed within in one year thus, there is no prepaid supplies.
Schedule 2021 2022 2023 2024 2025

Office Supplies 7.1 14,893.80 15,284.02 15,684.46 16,095.39 16,517.09

Sanitary and Bathroom Supplies 7.2 43,348.09 44,483.81 45,649.29 46,845.30 48,072.64
Maintenance Supplies 7.3 5,999.00 6,156.17 6,317.47 6,482.98 6,652.84
TOTAL 64,240.89 65,924.00 67,651.21 69,423.67 71,242.57

Schedule 7.1 - Office Supplies

Particulars Cost Quantity Total
Hard Copy Bond Paper - short ₱ 165.00 18 ₱ 2,970.00
Hard Copy Bond Paper - long 215.00 18 3,870.00
HBW Ballpen (12pcs/box) 240.00 10 2,400.00
Toyo Stapler No. 35 249.00 6 1,494.00
Folder - short 4.95 60 297.00
Folder - long 5.59 120 670.80
Envelope - short 3.00 60 180.00
Envelope - Long 4.00 120 480.00
Artline Stamps Pad 156.00 12 1,872.00
Valiant Record Book 55.00 12 660.00
TOTAL ₱ 14,893.80

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Schedule 7.2 - Sanitary and Bathroom Supplies
Particulars Cost Quantity Total
360°C Healthy Spray Mop ₱ 299.00 3 ₱ 897.00
Brush 199.50 3 598.50
Bowl & Rim Brush Set 299.75 3 899.25
Cotton Doormat (Large) 69.50 15 1,042.50
Shampoo Sachet 6.00 600 3,600.00
Soap 15.00 600 9,000.00
Tissue 8.00 600 4,800.00
Pail With Dipper 80.00 15 1,200.00
25l Trash Bin 230.00 15 3,450.00
Sprayer B/120 59.75 2 119.50
Bathroom Shower Room Floor Mat 432.00 9 3,888.00
Garbage Bag (100 pcs/roll) 230.00 2 460.00
Bareta Detergent Bar: Kalamansi: 16.55 60 993.00
Baygon Multi Insect Killer: 500ml 284.15 6 1,704.90
Betadine Solution: 120ml 206.05 6 1,236.30
Casino Rubbing Alcohol: Regular: 500ml 62.55 6 375.30
Comark Cl Muriatic Acid:250ml 30.45 6 182.70
Del Fabric Softener: Blue Pouch 122.85 12 1,474.20
Ellestreque Agua Oxigenada: 120ml 14.79 6 88.74
Ipi Efficascent Oil: Regular: 25ml 24.60 6 147.60
Lysol Liquid Disinfectant Spray:510g 490.00 3 1,470.00
Mama’s Love Absorbent Cotton:40g 22.70 2 45.40
Mr. Muscle Multi-Purpose Cleaner 109.80 10 1,098.00
Pride Allpurpose Detergent: 2000g 180.80 25 4,520.00
Sanicare Cotton Buds: 108 Tips 9.60 2 19.20
Zim Scouring Pad Regular 9.50 4 38.00
TOTAL ₱ 43,348.09

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Schedule 7.3 - Maintenance Supplies
Particulars Cost Quantity Total
Anzen Dry Chemical Fire Extinguisher ₱ 1,499.75 4 ₱ 5,999.00
TOTAL ₱ 5,999.00

Schedule 8 - Property, Plant and Equipment

Schedule 2021 2022 2023 2024 2025

Building 9 ₱ 11,530,307.15 ₱ 11,530,307.15 ₱ 11,530,307.15 ₱ 11,530,307.15 ₱ 11,530,307.15

Repairs and Maintenance Tools 10 2,284.75 2,284.75 2,284.75 2,284.75 2,284.75
Furniture and Fixture 11 597,191.33 597,191.33 597,191.33 597,191.33 597,191.33
Machinery and Equipment 12 870,803.94 870,803.94 870,803.94 870,803.94 870,803.94
Bedding Supplies 13 118,264.00 118,264.00 118,264.00 118,264.00 118,264.00
Clothing Apparel 14 88,434.00 88,434.00 88,434.00 88,434.00 88,434.00
Land Improvements 15 1,875,000.00 1,875,000.00 1,875,000.00 1,875,000.00 1,875,000.00
TOTAL ₱ 15,082,285.17 ₱ 15,082,285.17 ₱ 15,082,285.17 ₱ 15,082,285.17 ₱ 15,082,285.17
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Schedule 9 - Building
Additional cost: Labor cost is 40% of total cost of materials
Cost Number of Workers Total
Estimated Construction Cost ₱ 11,530,307.15
TOTAL ₱ 11,530,307.15

Schedule 9 - Building
Schedule
9.1 Concrete and Mansory Works ₱ 2,083,898.36
9.2 Steel and Reinforcement Works 481,400.00
9.3 Wood Works 486,058.00
9.4 Glass Works 110,600.00
9.5 Roofing Works 3,247,517.32
9.6 Ceiling Works 989,150.00
9.7 Painting Works 101,775.00
9.8 Tile Works 45,800.00
9.9 Pumbing Fixtures and Installation 483,020.00
9.10 Electrical Works 206,715.00
Total ₱ 8,235,933.68

Schedule 9.1 Programs Particulars Quantity Unit Unit Cost Total

Concrete and Mansory Works
Cement 800 bags ₱ 175.00 ₱ 140,000.00
Sand 56 cu.m 500.00 28,000.00
Gravel 35 cu.m 600.00 21,000.00
3/4 Crushed Gravel 60 cu.m 750.00 45,000.00
Hollow blocks 8,000 pcs 11.00 88,000.00
Granite Stone 790 sq. m. 2,200.00 1,738,000.00
Base Coat 28 bags 465.12 13,023.36
CWN 2 ½ 80 kg 75.00 6,000.00
CWN 3" 25 kg 75.00 1,875.00
CWN 4" 40 kg 75.00 3,000.00
Total ₱ 2,083,898.36

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Schedule 9.2 Steel and Reinforcement Works Particulars Quantity Unit Unit Cost Total
Footings & Columns
12 mm. dia. 550 pcs ₱ 175.00 ₱ 96,250.00
10 mm. dia. 500 pcs 175.00 87,500.00
Beams and Roof Beams
12 mm. dia 530 pcs 175.00 92,750.00
10 mm. dia. 500 pcs 175.00 87,500.00
Slabs and Dowels
12 mm. dia 400 pcs 175.00 70,000.00
10 mm. dia. 400 pcs 115.00 46,000.00
Tie Wires #16 35 kg 40.00 1,400.00
Total ₱ 481,400.00

Schedule 9.3 Wood Works Particulars Quantity Unit Unit Cost Total
Gmelina Wood 1,600 board foot ₱ 30.29 ₱ 48,464.00
Finishing Nail 2 1/2" 49 kl 90.00 4,410.00
Finishing Nail 1 1/2" 49 kl 90.00 4,410.00
CWN 3" 74 kg 75.00 5,550.00
12pcs Door Slide 6.6 feet 702.00 8,424.00
Flush Door - 0.70 x 2.10 10 unit 700.00 7,000.00
Flush Door - 0.80 x 2.10 6 unit 850.00 5,100.00
Flush Door - 1.60 x 2.10 4 unit 1,250.00 5,000.00
Flush Door - 1.40 x 2.10 2 unit 1,100.00 2,200.00
280pcs Plyboard 3/4 thk 1,120.00 313,600.00
210pcs Marine Plywood 1/4 thk 390.00 81,900.00
Total ₱ 486,058.00

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Schedule 9.4 Glass Works Particulars Quantity Unit Unit Cost Total
1.20 X 3.0 window glass 28 sheets ₱ 3,500.00 ₱ 98,000.00
2' X 4" aluminium frame 14 pcs 900.00 12,600.00
Total ₱ 110,600.00

Schedule 9.5 Roofing Works Particulars Quantity Unit Unit Cost Total
Clay Tiles-Slate 10,000 pcs ₱ 72.50 ₱ 725,000.00
Gutterstuff 5 In. X 48 In. K-Style Foam Gutter Filter  200 pcs 2,454.00 490,800.00
2"x2" Steel Truss Framing (Primer painted) 1,000 pcs 2,000.00 2,000,000.00
2"x3" Steel C-Purlins (Primer Painted) 55 pcs 420.00 23,100.00
G.I. Rivets 35 kg 126.00 4,410.00
G.I. Washers 28 pcs 2.94 82.32
4d(1-½) Common Wire Nails 55 kg 75.00 4,125.00
Total ₱ 3,247,517.32

Schedule 9.6 Ceiling Works Particulars Quantity Unit Unit Cost Total
Gypsum Board Ceiling Panels 600 pcs ₱ 1,423.25 ₱ 853,950.00
G.I. Metal furring Framing Studs and hangers 1,000 pcs 129.20 129,200.00
Gypsum Putty and Tape 20 gal 300.00 6,000.00
Total ₱ 989,150.00

Schedule 9.7 Painting Works Particulars Quantity Unit Unit Cost Total
Stucco Plaster 65 5 gal ₱ 465.00 ₱ 30,225.00
Exterior and Interior Walls (semi-gloss paint finish) 55 3.75L 500.00 27,500.00
Exterior and Interior Ceilings (flat paint finish) 40 3.75L 445.00 17,800.00
Doors Paint finish (QDE paint finish) 30 3.75L 525.00 15,750.00
Steel Casement Windows (QDE paint finish) 20 3.75L 525.00 10,500.00
Total ₱ 101,775.00

Schedule 9.8 Tile Works Particulars Quantity Unit Unit Cost Total
Wall Tiles 8x12 350 pcs ₱ 25.00 ₱ 8,750.00
Floor Tiles 12x12 685 pcs ₱ 30.00 ₱ 20,550.00
Adhesive 33 ₱ 500.00 ₱ 16,500.00
Total ₱ 45,800.00

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Schedule 9.9 Pumbing Fixtures and Installation Particulars Quantity Unit Unit Cost Total
Faucet 13 pcs ₱ 150.00 ₱ 1,950.00
Shower Valve 9 pcs 150.00 1,350.00
Floor Drain 13 pcs 75.00 975.00
Shower Drain 9 pcs 75.00 675.00
Water Line (Complete System) 2.4 Is. (per hanok) 8,500.00 142,800.00
Sewerage System 2.4 Is. (per hanok) 900.00 15,120.00
Storm Drainage System 2.4 Is. (per hanok) 9,000.00 151,200.00
Water Closet 13 pcs 1,500.00 19,500.00
Lavatory 13 pcs 1,500.00 19,500.00
4"0 PVC Wye 25 pcs 250.00 6,250.00
4"0 PVC Clean Out 25 pcs 1,100.00 27,500.00
4"0 PVC Elbow 20 pcs 230.00 4,600.00
4"0 PVC 90 Elbow 20 pcs 210.00 4,200.00
4"0 PVC Tee Reducer 18 pcs 450.00 8,100.00
4"0 PVC Sanitary Pipe 15 pcs 950.00 14,250.00
3"0 PVC Sanitary Pipe 15 pcs 450.00 6,750.00
3"0 PVC Elbow 15 pcs 450.00 6,750.00
3"0 PVC P-Trap 15 pcs 850.00 12,750.00
Gate Valve 15 pcs 1,000.00 15,000.00
1/2" 0 PVC Pipe 15 pcs 320.00 4,800.00
1/2" 0 PVC Tee 15 pcs 450.00 6,750.00
1/2" 0 PVC Elbow 10 pcs 850.00 8,500.00
1/2" 0 Faucet 5 pcs 750.00 3,750.00
Total ₱ 483,020.00

Schedule 9.10 Electrical Works Particulars Quantity Unit Unit Cost Total
Materials
Panel Board 8 branches 4 sets ₱ 2,350.00 ₱ 9,400.00
30 Amp Fuse Breaker 7 pcs 900.00 6,300.00
20 Amp Fuse Breaker 7 pcs 750.00 5,250.00
15 Amp Fuse Breaker 7 pcs 550.00 3,850.00
Service Drop Wires 100 meters 85.00 8,500.00
Entrance Cap 10 pcs 750.00 7,500.00
Metal Halide Floodlight Set 5 pcs 4,088.00 20,440.00
14mm Stranded Wire 14 box 1,550.00 21,700.00
12mm Stranded Wire 28 box 1,950.00 54,600.00
10mm Stranded Wire 20 meters 125.00 2,500.00
2"x3" Utility Box 90 pcs 35.00 3,150.00
4"x4" Junction Box 77 pcs 55.00 4,235.00
3/4 Polyflex Hose 7 meters 65.00 455.00
1/2 Polyflex Hose 7 boxes 900.00 6,300.00
Polyflex Clamp 7 packs 350.00 2,450.00
Electrical Tape 12 rolls 100.00 1,200.00
Conventional Outlet S 20 pcs 550.00 11,000.00
Conventional Outlet 20 pcs 550.00 11,000.00
2 Gang Switch 18 pcs 220.00 3,960.00
2 Gang Conv. Outlet 30 pcs 250.00 7,500.00
Female Plug 25 pcs 65.00 1,625.00
Receptacle 28 pcs 150.00 4,200.00
Electrical Conduit Pipe 30 pcs 320.00 9,600.00
Total ₱ 206,715.00

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Schedule 10 - Repairs and Maintenance Tools
Particular Cost per unit No. of units Total cost

Lotus 10mm Combination Wrench ₱ 99.00 1 ₱ 99.00

Lotus 18mm Claw Hammer W/Steel Tubular Handle 85.00 1 85.00
Lotus Lgs-500 Garden Saw Set 849.00 1 849.00
Lotus Lhs-018w Wooden Handle Hand Saw 18" 165.00 1 165.00
Lotus Lpl-009 Torpedo Level 50.00 1 50.00
Lotus Protech Series L/Nose Pliers 5 1/2" 100.00 1 100.00
Lotus Lst-715e 7.5m Measuring Tape 319.00 1 319.00
Multifunction Plastic Toolbox On-Board Storage Box Hardware 138.00 1 138.00
Sellery Utility Knife 190.00 1 190.00
Sentry Sdvr 12p Screwdriverset 12pcs 289.75 1 289.75
TOTAL COST ₱ 2,284.75

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Schedule 11 - Furniture and Fixtures

Particulars Cost per unit No. of units Total

Apollo Drop Lights ₱ 3,800.00 1 ₱ 3,800.00

Apollo Drop Lights 1,390.00 5 6,950.00
Apollo Drop Lights 1,390.00 5 6,950.00
Apollo Post Lamps 1,380.00 5 6,900.00
Apollo Wall Lamps 1,700.00 5 8,500.00
Candle Holder Décor 4,990.83 1 4,990.83
Chair 62 1g 1,595.00 9 14,355.00
4gang Universal Extension Cord 230.00 5 1,150.00
Rgb Led Light Rotating Disco Mirror Ball Motor Stage Ktv 552.00 4 2,208.00
Disenio Sectional/ Corner Sofa Set Ohio Sr 21,981.00 4 87,924.00
Firefly Basic Led Ceiling Lamp 650.00 20 13,000.00
Camel Ccex-10 Duct Fan 1,020.00 13 13,260.00
Firefly Basic- 3 Led Bulb 420.00 5 2,100.00
Glass Center Table 1019 7,099.00 1 7,099.00
Mdf Wooden Vase 849.75 10 8,497.50
Kingstone Mirror 350.00 13 4,550.00
L-Shaped Sofa Set 8,400.00 1 8,400.00
Lucent Jp Wallclock 599.75 15 8,996.25
Philips Os 15252 Pedestal Blackbrush 1,495.00 2 2,990.00
Pineapple Gold With Stone Vase 979.70 1 979.70
San-Yang Office Table Fot8203 4,695.00 5 23,475.00
Sanwa Divider 5,695.00 4 22,780.00
Sanwa Side Table A5 45c 2,995.00 1 2,995.00
Sanwa Wardrobe Cabinet Wr18 2 With Mirror 6,395.00 2 12,790.00
Sherta 2doors Wardrobe 804 With Mirror 8,999.00 3 26,997.00
Sherta 2doors Wardrobe 804 3 With Mirror 12,999.00 4 51,996.00
Swing Vintage Style Home Decorative Wall Clock 909.00 1 909.00
Uratex Classic Chair Black 359.75 220 79,145.00
Universal Silver Coated Ironing Board Cover Pad Reflect Heat 175.00 2 350.00
Wjf 85cm Stainless Steel Kitchen Shelf Rack 2,399.00 2 4,798.00
High Quality Bathroom Storage Shelf Rack 480.00 9 4,320.00
San-Yang Dining Set 3015 (2s) 3,595.00 3 10,785.00
Wood Dining Table Set Round 5,199.75 4 20,799.00
Bolius Dream Catcher Decor 199.75 9 1,797.75
Flower Decor 109.75 5 548.75
Flower Decor 189.75 5 948.75
Korean Decor Set 1,389.75 1 1,389.75
Korean Decor Set 1,389.75 1 1,389.75
Korean Decor Set 1,389.75 1 1,389.75
Korean Decor Set 1,389.75 1 1,389.75
Wall Decor 1,300.00 2 2,600.00
Painting Decor 319.00 10 3,190.00
Toilet Bowl with bidet 557.00 13 7,241.00
Colony soft single hole faucet with sink 444.00 13 5,772.00
Shower 248.00 9 2,232.00
10 seater 180cm round plastic folding round dining table 2,322.24 20 46,444.80
Portable Projector Screen 384.00 2 768.00
Round Table Cloth 235.00 10 2,350.00
Chair Cover 110.00 200 22,000.00
Lectern Rostrum Podium Pulpit 10,000.00 2 20,000.00
TOTAL ₱ 597,191.33

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Schedule 12 - Machinery and Equipment
Particulars Cost per unit No. of units Total

Ace Sub 120ac 5.1 Ch Home Theatre Speaker System ₱ 2,599.00 6 ₱ 15,594.00
Acer Computer 23,999.00 5 119,995.00
Union Ugair-5000 0.5hp Room Aircon (Manual) 7,450.00 19 141,550.00
American Home Avu-Cyc 1200 Vacuum Cleaner 2,573.97 2 5,147.94
Hanabishi Hac-600m 6.0l Air Cooler 5,748.50 1 5,748.50
Changhong Led-19718 Led Tv 12,349.70 14 172,895.80
Gasoline Generator 15,499.00 1 15,499.00
Hanabishi Glass Stove 2,254.50 1 2,254.50
Haier Freezer 7.1 Cu Ft 15,659.75 1 15,659.75
Haier Refrige-Rator 6.0 Cuft 16,189.75 1 16,189.75
Markes Beverage Cooler 25,750.00 1 25,750.00
Panatone Microphone 299.00 10 2,990.00
Rts Printer 9,450.00 1 9,450.00
Zeus Desktop All-In-One Computer Pc 22" Superslim Quad Core With Database And Cash Register 77,099.00 1 77,099.00
Safetech Digital Video Recorder 12,499.00 15 187,485.00
Union Ugfi-160 Flat Iron Light 330.00 2 660.00
Panasonic KX-TS500MX Telephone 670.00 13 8,710.00
Union Ugsf-1600 16" Stand Fan W/Pb 1,145.00 2 2,290.00
Epson EB-S41 Projector 15,919.00 2 31,838.00
Whirlpool Xwt138 Washing Machine Twntub 13kg 13,997.70 1 13,997.70
TOTAL COST ₱ 870,803.94

Schedule 13 - Bedding Supplies

Particular Cost per unit No. of units Total cost

Mandaue Foam Dreams Pillow Large 20x30 Plain-White ₱ 240.00 40 ₱ 9,600.00

Foldable Futon Bed 2,177.00 32 69,664.00
Blankets 275.00 40 11,000.00
Pure cotton body bath towel microfiber cloth 250.00 40 10,000.00
Curtains Set 600.00 30 18,000.00
TOTAL COST ₱ 118,264.00

Schedule 14 - Clothing Apparel

Cost Quantity Total
Women’s Hanbok ₱ 2,271.00 20 ₱ 45,420.00
Women’s Hanbok -uniform 2,211.00 4 ₱ 8,844.00
Men’s Hanbok 2,278.00 15 34,170.00
TOTAL ₱ 88,434.00

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Schedule 15 - Land Improvements
Cost per SQM Area Total
Landscaping with Labor and Materials ₱ 1,500.00 750 ₱ 1,125,000.00
Pond with Filtration System 15,000.00 50 750,000.00
Total ₱ 1,875,000.00

Schedule 16 - Depreciation        
Assumptions:       
1. The depreciation method used to depreciate PPE is straight line method.
2. Useful life and residual value are estimated based on judgement. 
Schedule Cost UL RV 2021 2022
Depreciatio Accumulated Depreciation Accumulated
  n (₱) Depreciation (₱ ) (₱) Depreciation (₱ )
₱11,530,307.1
9 20 20% 461,212.29 461,212.29 461,212.29 922,424.57
Building 5
Repairs and
1 2,284 2
Maintenance 0 .75
10 10%
05.63
205.63 205.63 411.26
Tools
Furniture and 1 597,191
7 10%
76, 76,7 1
Fixture 1 .33 781.74 76,781.74 81.74 53,563.48
Machinery and 1 870,803
10 10%
78, 78,3 1
Equipment 2 .94 372.35 78,372.35 72.35 56,744.71
Bedding 1 118,264
5 10%
21, 21,2
Supplies 3 .00 287.52 21,287.52 87.52 42,575.04
Clothing 1 88,434
5 10%
15, 15,9
Apparel 4 .00 918.12 15,918.12 18.12 31,836.24
Land 1 1,875,000
15 10%
112, 112,5 2
Improvement 5 .00 500.00 112,500.00 00.00 25,000.00
766,27 76 766,277. 1,532,55
TOTAL 7.65 6,277.65 65 5.30

                 

Schedule 16 – Depreciation (continuation)

     
2023 2024 2025
Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated
(₱) Depreciation (₱ ) (₱) Depreciation (₱ ) (₱) Depreciation (₱ )
461,212.29 1,383,636.86 461,212.29 1,844,849.14 461,212.29 2,306,061.43
20 61 20 8 20 1,02
5.63 6.88 5.63 22.51 5.63 8.14
76,78 230,34 76,78 307,1 76,78 383,90
1.74 5.23 1.74 26.97 1.74 8.71
78,37 235,11 78,37 313,4 78,37 391,86
2.35 7.06 2.35 89.42 2.35 1.77
21,28 63,86 21,28 85,1 21,28 106,43
7.52 2.56 7.52 50.08 7.52 7.60
15,91 47,75 15,91 63,6 15,91 79,59
8.12 4.36 8.12 72.48 8.12 0.60
112,50 337,50 112,50 450,0 112,50 562,50
0.00 0.00 0.00 00.00 0.00 0.00
2,298,832. 766,277.6 3,065,11
766,277.65 766,277.65 3,831,388.25
95 5 0.60

           

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Financial Ratio Analysis 2021 2022 2023 2024 2025

Revenue Current - Revenue Prior

a.       Revenue growth - 1.79% 1.80% 1.80% 1.81%
Revenue Prior

Revenue
b.      Revenue to asset 13.94% 13.25% 12.65% 12.12% 11.63%
Total Assets

Revenue
c.       Fixed-asset turnover ratio 85.73% 94.16% 101.60% 110.02% 119.64%
PPE - Accum Dep.

Revenue-COS
d.      Gross Profit Margin 68.20% 71.71% 71.63% 71.54% 71.46%
Revenue

GP- OPEX - All Other Exp.

e.       Net Profit Margin 47.26% 49.65% 49.48% 48.66% 49.14%
Total Revenue

Net Income
f.       Return on Assets 6.59% 6.58% 6.26% 5.90% 5.72%
Total Assets

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Schedule of Registration Fees

DTI Registration Fee ₱ 500.00

Documentary Stamp 15.00
Barangay Clearance 50.00
Community Tax Certificate 5.00

Business Permit:  
Mayor's Permit Fee ₱ 50.00  
Sanitary Inspection fee 100.00  
Health Certification fee 50.00  
Police Clearance 50.00  
FSIC (10% of all regulatory fees) 285.00  
Business Plate and Sticker 300.00  
TOTAL 835.00
   
BIR Costs:  
Documentary Stamp Tax 15.00  
Annual Registration Fee 500.00  
Certification Fee 100.00  
Special Books 120.00  
Printing of receipts 750.00  
Business Tax 923.40  
TOTAL 2,408.40
Printing expenses 2,000.00
Cost of Training 7,500.00
Total   ₱ 13,313.40

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PROJECTED COST

A. FIX ASSETS  
Building ₱ 11,530,307.15
Repairs and Maintenance Tools 2,284.75
Furniture and Fixture 46,444.80
Machinery and Equipment 870,803.94
Clothing Apparel 88,434.00
Bedding Supplies 118,264.00
TOTAL ₱ 12,656,538.64
   
B. INITIAL WORKING CAPITAL (for 3 months)
Utilities ₱ 793,952.64
Employee Salary 4,132,372.20
Office Supplies 14,893.80
Sanitary and Bathroom Supplies 43,348.09
Maintenance Supplies 5,999.00
ANNUAL 4,990,565.73
TOTAL ₱ 1,247,641.43
   
C. START-UP COST  
Registration Fees ₱ 13,313.40
TOTAL ₱ 13,313.40
   
TOTAL PROJECT COST ₱ 13,917,493.47
   

Payback Period
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Payback period refers to the length of time before the cost of investment is fully

recovered. It is computed by dividing the initial cost of investments by the annual net

cash inflows. In such case when there is an uneven cash flow, the cash flows shall be

subtracted from the initial cost of investment until it becomes zero (0). Base on the

computation above, the cost of investments will be recovered after 1.41 years.

Projected Payback Period

Annual Returns Cumulative Returns

0- 13,917,493.47 - 13,917,493.47
1 6,689,939.55 - 7,227,553.93
2 7,100,853.41 - 126,700.51
3 7,192,984.57 7,066,284.06
4 7,200,128.60 14,266,412.66
5 7,380,665.60 21,647,078.26

Annual Returns
Net Income Depreciation Total
1 5,923,661.90 766,277.65 6,689,939.55
2 6,334,575.76 766,277.65 7,100,853.41
3 6,426,706.92 766,277.65 7,192,984.57
4 6,433,850.95 766,277.65 7,200,128.60
5 6,614,387.95 766,277.65 7,380,665.60

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B
Payback Period = A +
C

Where,
A  is the last period number with a negative cumulative cash flow;
B is the absolute value (i.e. value without negative sign) of cumulative net cash flow at the end of the period A; and
C  is the total cash inflow during the period following period A

126,700.51
Payback Period = 2 + = 2.02 years
7,192,984.57

MARGIN OF SAFETY

MOS The margin of safety refers to the amount of peso-sales or the amount of units

by which the projected sales may be decreased without resulting to a loss. The margin of

safety in pesos is computed by subtracting the break-even sales in peso from the

projected sales for the period. The table shows the margin of safety of the projected

operations of the company for the periods ending 2021, 2022, 2023, 2024 and 2025.

MARGIN OF SAFETY

Revenue Breakeven in Peso Margin of Safety

12,534,380.00 5,751,305.86 6,783,074.14
12,758,834.00 5,405,706.05 7,353,127.95
12,988,460.00 5,520,128.12 7,468,331.88
13,221,695.00 5,760,123.36 7,461,571.64
13,460,560.00 5,758,044.36 7,702,515.64

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RETURN ON INVESTMENT

ROI Return on investment (ROI) is a financial ratio used to calculate the

benefit an investor will receive in relation to their investment cost. Return on

Investment measures the amount of return on an investment relative to the

investment’s cost. To calculate Return on Investment, the benefit (or return) of an

investment is divided by the cost of the investment, and the result is expressed as a

percentage or a ratio. For purposes of this study, ROI is computed by dividing net

income by total initial investment.

RETURN ON INVESTMENT
2021 2022 2023 2024 2025
Net Income 5,923,661.90 6,334,575.76 6,426,706.92 6,433,850.95 6,614,387.95
Initial Investment 13,917,493.47 13,917,493.47 13,917,493.47 13,917,493.47 13,917,493.47
Return on Investment 0.43 0.46 0.46 0.46 0.48

Average Return on Investment 0.46

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