Financial Plan
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Total Project Cost
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Sources of Financing
Bank Loans — a bank loan is one of the most popular sources of financing. So, bank loan is when a bank offers to lend money to consumers for a certain time period. As a condition of the bank loan, the borrower will need to pay a certain amount of interest per month, or per year. Secured Bank Loan, however, is a loan that uses an asset as a collateral. A good example of this is mortgage loan Personal
Investments — when starting a business, your first inventor should be yourself— either with your own cash or with collateral on your assets. This proves to investors and bankers that you have a long-term commitment to your project and that you are ready to take risks.
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Projected Financial Statements
Projected Cash Flow Statement
Income Statement
Balance Sheet
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Profitability Indices
ROI
(Return on Investments)
In April 2022, Pensieve Cup will have a return on investment of a ratio of 15650%, in April 2023 13463% and 14427 % in April 2024. This means the company will be gaining all of its investment in the first year as well for the second year and third year.
Pay back Period
Pay back Period – Amount of Cash flow
April 2022
= 5,907
= 0.1 or 12months
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April 2023
= 8,861 / 1,196,446.16
= 0.08 or 0.96months
April 2024
= 10,335.3 / 1,496,529.2
= 0.01 or 12months
Net Income: Sales Ratio
Net Income: Ratio
Projected
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April 2022
Net Income/Net Sales = Profit Margin
924,574.6/994,131.80 = 93%
April 2023
Net Income/Net Sales = Profit margin
1,114,509.24/1,192,958 = 93%
April 2024
Net Income/Net Sales = Profit margin
1,402,164.37/1491197.7= 97%
Break-even Point
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List of Assumptions Used
Income Statement
The Company has three (3) kinds of products, namely: Halo-halo, Maiz con Hielo, and Saba con Hielo and we sell them per cup. The price ranges from P 15, P 25, P 30, P 45 according to its cup size. The proponents based their sales volume assumptions on realistic statistics and reviews. Of concerns about operating expenses, it was based on real prices that were research by the proponents (e.g. canvassing) The net sales for May 2022 were presented here while the net sales for May 2023 to 2024 were assumpted to increase by 20 to 25% as well as the cost of goods sold.
Balance Sheet
The proponents' assumption for the balance sheet are based on reasonable expectations of asset acquisition in the coming three (3) years. As for concerns about the depreciation, we used the straight-line depreciation method where the formula is Annual Depreciation Expense is equal to cost of the asset – salvage value then divide it by the useful life of the asset. The partner's equity was computed by getting the statement of owner's equity where: Beginning Capital then add Owner's Investment and Net Income then deduct Drawings and Losses.
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Schedules
