Important Assumptions

• The initial project costs amount to P 650,000.00. All initial outlays will be paid in cash. These include Leasehold improvements, furniture and fixtures, office equipment, office supplies, rent deposit, permits and licenses, business plan, inaugural expense, advertising and promotion, utilities and transportation expense.
• Sources of funds would be P 600, 000.00 donations from parents and
P 150,000.00 from personal savings.
• Payment of rent deposit of one month advance and three months deposit is required by the lessor.
• Working capital is estimated to be one month expense of the business.
• Tax rate is assumed to be 20%
• Calendar year is used.
• All videoke services rendered are paid in cash.
• All operating expenses are paid in cash.
• The salary and wages of employees will be P 5, 000 per month and it will increase by 5% every year.
• 13th month pay will increase by 5% every year.
• There will be 3 employees with working hours of 8 hours each and will report from Mondays to Saturdays. The schedule is as follows:
1st Employee: 10am-5pm
2nd Employee: 1pm-9pm
3rd Employee: 4pm-12nn
• Utility expense of The Box Family Videoke Rooms is projected to increase 5% annually
• Business taxes will depend on the annual gross service income. This will be paid with the other fees prescribed by the local government of Parañaque City.
• Advertising expense on pre-operating period would be P11,000 while in operating months would be P3,000.
• The Estimated useful life of the equipment, leasehold improvements, furniture and fixtures are estimated to be 5 years.
• The salvage value is assumed to be 1% of cost.
• Utilities expenses are variable costs
• Advertising expense and office supplies are variable costs.
• The straight line method will be used in computing the depreciation expense


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Total Project Cost

Fixed Investments

Leasehold Improvements (Table 1) P 49, 400.00
Furniture and Fixtures (Table 2) 100,250.00
Office Equipment (Table 3) 240,810.00
Rent Deposit (3 months.) 75,000.00

Total P 465,460.00

Pre-Operating Expenses

Permits and Licences (Table 4) P 10, 000.00
Feasibility Study / Business Plan 1, 000.00
Transportation Expense 1, 000.00
Initial Marketing Efforts (Table 5) 11, 000.00
Total 22, 850.00

Working Capital

Office Supplies (Table 6) P 1, 670.00
Maintenance Supplies (Table 7) 1,175.00
Salaries Expense (Table 8) 22, 000.00
Prepaid Rent 25, 000.00
Utilities Expense (Table 9) 31, 000.00
Cash 80, 845.00
Total 161,690.00

Total Project Cost P 650, 000.00


Sources of Funds

Donation in cash from parents P 550, 000.00
Personal Savings 100, 000.00
Total P 650, 000.00

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HEY GUYS... I'm really getting sick of my financials... can anyone help me? It's a part of my business plan... uhmmm :)
I attached a copy of my financial statements which I can't balance the statement of financial position... really need help pwetty pwease? ^^

Well, when someone says pwetty pwease... I will try to look at it if I get time. It looks awful long and complicated, and I've got about 3 billion people after me at once. I assume you've got some time on this?

Haha... I kind of fixed it already... imma post my trial answers laterz...

It's good that you fixed it cause I haven't had time to even think about it. It's gotten so I can't even get through all the forums I do in one day anymore.