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Financial Statements

The document outlines the startup expenses, assets, funding requirements, and projected financial statements for a proposed food industry startup called REAL.Q Food Industry. The total startup funding requirement is ₱13,338,805 which will come from ₱9,338,805 in liabilities and ₱4,000,000 in equity from owners' capital. The projected income statement forecasts annual sales growth of 5% and net income growth for the first 5 years of operations.

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cecille ramirez
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42 views12 pages

Financial Statements

The document outlines the startup expenses, assets, funding requirements, and projected financial statements for a proposed food industry startup called REAL.Q Food Industry. The total startup funding requirement is ₱13,338,805 which will come from ₱9,338,805 in liabilities and ₱4,000,000 in equity from owners' capital. The projected income statement forecasts annual sales growth of 5% and net income growth for the first 5 years of operations.

Uploaded by

cecille ramirez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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REAL.

Q FOOD INDUSTRY
PROJECT COST

Startup Expenses
Legal fees 30,000
Logo design 30,000
Marketing materials 25,000
Payroll 100,000
Computers 50,000
Other Expenses 20,000
Total Startup Expenses 255,000
Startup Asset
Cash required 5,500,000
Startup inventory 100,000
Building 3,000,000
Land 2,500,000
Equipment 692,755
Office Furnitures and Supplies 20,250
Vehicles 700,000
Utilities 120,800
Other Current Assets 450,000
Total Asset 13,083,805
TOTAL REQUIREMENTS 13,338,805
Startup Funding
Liabilities
Accounts Payable 4,175,000
Other Current Liabilities 163,805
Long-Term Liabilities 5,000,000
Total Liabilities 9,338,805
Equity
Owners' Capital 4,000,000
Total Equity 4,000,000
TOTAL STARTUP FUNDING 13,338,805
REAL.Q FOOD INDUSTRY
Projected Income Statement
For the Year Ended December 31, 2027
2023 2024 2025 2026 2027
Sales ₱41,600,000.00 ₱43,680,000 ₱45,864,000 ₱48,157,200 ₱50,564,800
Less: Cost of Sales ₱15,865,000.00 ₱17,228,250.00 ₱17,961,412.50 ₱15,148,071.10 ₱17,714,903.65
Gross Profit ₱25,735,000.00 ₱26,451,750.00 ₱27,902,587.50 ₱33,009,128.90 ₱32,849,896.35

Less: Operating Expenses

General & Administrative Expenses

Utility Expense ₱450,000.00 ₱450,000.00 ₱450,000.00 ₱450,000.00 ₱450,000.00


Salaries Expense ₱2,500,000.00 ₱2,625,000.00 ₱2,756,250.00 ₱2,894,062.50 ₱3,038,765.63
Depreciation Expense ₱139,060.00 ₱139,060.00 ₱139,060.00 ₱139,060.00 ₱139,060.00
Maintenance & Repairs ₱150,000.00 ₱150,000.00 ₱150,000.00 ₱150,000.00 ₱150,000.00

Total General & Administrative ₱3,239,060.00 ₱3,364,060.00 ₱3,495,310.00 ₱3,633,122.50 ₱3,777,825.63


Expenses
Selling Expenses
Salaries Expense ₱900,500.00 ₱945,525.00 ₱992,801.25 ₱1,042,441.31 ₱1,094,563.38
Delivery Expense ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00
Advertisements Expense ₱3,200,000.00 ₱3,520,000.00 ₱3,872,000.00 ₱4,259,200.00 ₱4,685,120.00
Total Selling Expenses ₱4,600,500.00 ₱4,965,525.00 ₱5,364,801.25 ₱5,801,641.31 ₱6,279,683.38
Total Gen. & Administrative and Selling ₱7,839,560.00 ₱8,329,585.00 ₱8,860,111.25 ₱9,434,763.81 ₱10,057,509.00
Expenses
Operating Income ₱17,895,440.00 ₱18,122,165.00 ₱19,042,476.25 ₱23,574,365.09 ₱22,792,387.35

Interest Expense ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00 ₱500,000.00


Income before tax ₱17,395,440.00 ₱17,622,165.00 ₱18,542,476.25 ₱23,074,365.09 ₱22,292,387.35
Income taxes ₱3,288,404.00 ₱3,367,758.00 ₱3,689,867.00 ₱5,276,028.00 ₱5,002,335.00
Net Income/Profit ₱14,107,036.00 ₱14,254,407.00 ₱14,852,609.25 ₱17,798,337.09 ₱17,290,052.35
*5% Annual Sales growth
* Increase of salaries expense by 5% yearly
* Advertising expense in increase by 10% yearly
REAL.Q FOOD INDUSTRY
Statement of Financial Position
As of the year ended 2023-2027
ASSETS 2023 2024 2025 2026 2027
Current Assets
Cash ₱ ₱ ₱ ₱ 45,749,340.00 ₱
39,520,000.00 41,496,000.00 43,570,800.00 48,036,560.00
Accounts Receivable ₱ ₱ ₱ ₱ ₱
2,080,000.00 2,184,000.00 2,293,200.00 2,407,860.00 2,528,240.00
Less: Allowance for ₱ ₱ 21,840.00 ₱ ₱ ₱
Doubtful Accounts 20,800.00 22,932.00 24,078.00 25,282.00
Inventories ₱ ₱ ₱ ₱ 15,945,338.00 ₱
16,700,000.00 18,135,000.00 18,906,750.00 18,647,267.00
Total Current Assets ₱ ₱ 61,836,840.00 ₱ 64,793,682.00 ₱64,126,616.00 ₱ 69,237,349.00
58,320,800.00
Non-Current Assets
Land ₱ ₱ 2,500,000.00 ₱ 2,500,000.00 ₱ 2,500,000.00 ₱ 2,500,000.00
2,500,000.00
Property, Plant and ₱ ₱ 692,755.00 ₱ 692,755.00 ₱ 692,755.00 ₱ 692,755.00
Equipment 692,755.00
Less: Accumulated -₱ 139,060.00 -₱ 139,060.00 -₱ 139,060.00 -₱ 139,060.00 -₱ 139,060.00
Depreciation
Building ₱ ₱ 3,000,000.00 ₱ 3,000,000.00 ₱ 3,000,000.00 ₱ 3,000,000.00
3,000,000.00
Less: Accumulated -₱ 570,000.00 -₱ 570,000.00 -₱ 570,000.00 -₱ 570,000.00 -₱ 570,000.00
Depreciation
Total Non-Current ₱ ₱ 5,483,695.00 ₱ 5,483,695.00 ₱ 5,483,695.00 ₱ 5,483,695.00
Assets 5,483,695.00
TOTAL ASSETS ₱ ₱ 67,320,535.00 ₱ 70,277,377.00 ₱69,610,311.00 ₱ 74,721,044.00
63,804,495.00
LIABILITIES
Current Liabilities
Accounts Payable ₱ ₱ ₱ ₱ ₱
4,175,000.00 4,325,000.00 4,500,000.00 3,750,000.00 4,562,500.00
Accrued Expense ₱ ₱ 875,000.00 ₱ 875,000.00 ₱ 875,000.00 ₱ 875,000.00
Payable 875,000.00
Income Tax Payable ₱ ₱ 3,367,758.00 ₱ 3,689,867.00 ₱ 5,276,028.00 ₱ 5,002,335.00
3,288,404.00
Other Current ₱ ₱ 500,000.00 ₱ 500,000.00 ₱ 500,000.00 ₱ 500,000.00
Liabilities 500,000.00
Total Current Liabilities ₱ ₱ 9,067,758.00 ₱ 9,564,867.00 ₱10,401,028.00 ₱ 10,939,835.00
8,838,404.00
Non-Current Liabilities
Loans Payable ₱ ₱ 5,000,000.00 ₱ 5,000,000.00 ₱ 5,000,000.00 ₱ 5,000,000.00
5,000,000.00
Total Non-Current ₱ ₱ 5,000,000.00 ₱ 5,000,000.00 ₱ 5,000,000.00 ₱ 5,000,000.00
Liabilities 5,000,000.00
TOTAL LIABILITIES ₱ ₱ 14,067,758.00 ₱ 14,564,867.00 ₱15,401,028.00 ₱ 15,939,835.00
13,838,404.00
STOCKHOLDERS’
EQUITY
Owners' Capital ₱ ₱ 38,998,370.00 ₱ 40,859,901.00 ₱36,410,947.00 ₱ 41,491,157.00
35,859,055.00
Retained Earnings ₱ ₱ 14,254,407.00 ₱ 14,852,609.00 ₱17,798,337.00 ₱ 17,290,052.00
14,107,036.00
TOTAL ₱ ₱ 53,252,777.00 ₱ 55,712,510.00 ₱54,209,284.00 ₱ 58,781,209.00
STOCKHOLDERS’ 49,966,091.00
EQUITY
TOTAL LIABILITIES AND ₱ ₱ 67,320,535.00 ₱ 70,277,377.00 ₱69,610,311.00 ₱ 74,721,044.00
STOCKHOLDERS’ 63,804,495.00
EQUITY
REAL.Q FOOD INDUSTRY
Statement of Cash Flow
For the Year Ended December 31, 2023-2027

2023 2024 2025 2026 2027


Cash at the Beginning of Year 0 ₱39,520,000.00 ₱41,496,000.00 ₱43,570,800.00 ₱45,749,340.00
Operating Activities
Cash receipts from
Customers ₱ 20,530,000.00 ₱ 14,371,000.00 ₱ 10,059,700.00 ₱ 13,077,610.00 ₱ 17,000,893.00
Other Operations ₱ 7,100,000.00 ₱ 6,390,000.00 ₱ 5,751,000.00 ₱ 7,476,300.00 ₱ 9,719,190.00
Cash paid for
Inventory purchases -₱ 2,525,000.00 -₱ 5,025,000.00 -₱ 2,525,000.00 -₱ 2,525,000.00 -₱ 2,525,000.00
General operating and administrative -₱ 3,239,100.00 -₱ 9,364,060.00 -₱ 3,495,310.00 -₱ 1,500,000.00 -₱ 2,000,000.00
expenses
SWage expenses -₱ 2,500,000.00 -₱ 2,925,000.00 -₱ 2,756,250.00 -₱ 1,700,000.00 -₱ 2,177,329.00
Net Cash Flow from Operations ₱19,365,900.00 ₱ 3,446,940.00 ₱ 7,034,140.00 ₱ 14,828,910.00 ₱ 20,017,754.00
Investing Activities
Cash receipts from
Sale of property and equipment ₱ 15,000,000.00 ₱ 7,500,000.00 ₱ 5,625,000.00 ₱ 4,218,750.00 ₱ 3,164,062.50
Collection of principal on loans ₱ 2,650,000.00 ₱ 900,500.00 ₱ 806,240.00 ₱ 604,680.00 ₱ 453,510.00
Sale of investment securities ₱ 2,500,000.00 -₱ 250,000.00 -₱ 212,500.00 -₱ 180,625.00 -₱ 153,531.25
Cash paid for
Purchase of property and equipment -₱ 2,300,000.00 -₱ 6,000,000.00 -₱ 2,300,000.00 -₱ 2,300,000.00 -₱ 2,300,000.00
Purchase of investment securities -₱ 1,700,900.00 -₱ 3,700,000.00 -₱ 3,737,000.00 -₱ 3,774,370.00 -₱ 3,812,113.70
Net Cash Flow from Investing Activities ₱16,149,100.00 -₱ 1,549,500.00 ₱ 181,740.00 -₱ 1,431,565.00 -₱ 2,648,072.45
Financing Activities
Cash receipts from
Borrowing ₱ 7,005,000.00 ₱ 5,278,560.00 ₱ 3,958,920.00 ₱ 2,969,190.00 ₱ 2,226,892.50
Cash paid for
Repayment of loans -₱ 3,000,000.00 -₱ 5,200,000.00 -₱ 9,100,000.00 -₱ 14,187,995.00 -₱ 17,309,353.90
Net Cash Flow from Financing Activities ₱ 4,005,000.00 ₱ 78,560.00 -₱ 5,141,080.00 -₱ 11,218,805.00 -₱ 15,082,461.40
Net Increase in Cash ₱39,520,000.00 ₱ 1,976,000.00 ₱ 2,074,800.00 ₱ 2,178,540.00 ₱ 2,287,220.15

Cash at End of the Year ₱ 39,520,000.00 ₱ 41,496,000.00 ₱ 43,570,800.00 ₱ 45,749,340.00 ₱ 48,036,560.15


REAL.Q FOOD INDUSTRY
PROJECT COST

Startup Expenses
Legal fees 30,000
Logo design 30,000
Marketing materials 25,000
Payroll 100,000
Computers 50,000
Other Expenses 20,000
Total Startup Expenses 255,000
Startup Asset
Cash required 5,500,000
Startup inventory 100,000
Building 3,000,000
Land 2,500,000
Equipment 692,755
Office Furnitures and Supplies 20,250
Vehicles 700,000
Utilities 120,800
Other Current Assets 450,000
Total Asset 13,083,805
TOTAL REQUIREMENTS 13,338,805
Startup Funding
Liabilities
Accounts Payable 4,175,000
Other Current Liabilities 163,805
Long-Term Liabilities 5,000,000
Total Liabilities 9,338,805
Equity
Owners' Capital 4,000,000
Total Equity 4,000,000
TOTAL STARTUP FUNDING 13,338,805
Financial Analysis
Profitability Ratio Analysis 2023 2024 2025 2026 2027
Return of Investment 39% 37% 36% 49% 42%
Net Profit Margin 34% 33% 32% 37% 34%
Gross Profit Margin 62% 61% 61% 69% 65%
Return on Equity 28% 19% 18% 21% 21%
Return of Investment 2023 2024 2025 2026 2027
Net Income ₱14,107,036.00 ₱14,254,407.00 ₱14,852,609.25 ₱17,798,337.09 ₱17,290,052.35
Total Investment ₱35,859,055.00 ₱38,998,370.00 ₱40,859,901.00 ₱36,410,947.00 ₱41,491,157.00
Return of Investment 39% 37% 36% 49% 42%

Net Profit Margin 2023 2024 2025 2026 2027


Net Profit ₱14,107,036.00 ₱14,254,407.00 ₱14,852,609.25 ₱17,798,337.09 ₱17,290,052.35
Sales ₱41,600,000.00 ₱43,680,000 ₱45,864,000 ₱48,157,200 ₱50,564,800
Profit Margin 34% 33% 32% 37% 34%

Gross Profit Margin 2023 2024 2025 2026 2027


Gross Profit ₱25,735,000.00 ₱26,451,750.00 ₱27,902,587.50 ₱33,009,128.90 ₱32,849,896.35
Sales ₱41,600,000.00 ₱43,680,000 ₱45,864,000 ₱48,157,200 ₱50,564,800
Profit Margin 62% 61% 61% 69% 65%

Return on Equity 2023 2024 2025 2026 2027


Net Income ₱14,107,036.00 ₱14,254,407.00 ₱14,852,609.25 ₱17,798,337.09 ₱17,290,052.35
Average Owners' ₱49,966,091.00 ₱ 76,592,479.50 ₱ 81,109,032.13 ₱ 82,817,152.30 ₱ 83,599,888.77
Equity
Return on Equity 28% 19% 18% 21% 21%

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