Section IV

FINANCIAL PLAN

Total Capital:

The group PeanutSarap will be investing P 160.00 for the operation of the business. This capital will be spent by acquiring some ingredients that will be used in producing the products of the company.

Ingredients to be used in making the products:

Oil P 11 / 40 pcs

Lumpia Wrapper P 7 / 40 pcs

Peanuts P 16.5 / 40 pcs

Sugar P 6 / 40 pcs

Margarine P 5 / 40 pcs

Chocolate Syrup P 100

Total Capital P 160

Financial Statements:

PEANUTSARAP GROUP

Projected Income Statement

For the month ended September 12, 2013

Sales: P 1350

Less: Cost of Sales (1001.00) P 349.00

NET INCOME P 349.00

PEANUTSARAP GROUP

Statement of Projected Cash Flow

For the month ended September 12, 2013

Cash flows from operating activities:

Cash received from customers P 1350.00

Cash paid for expenses 1001.00

Net Cash provided by operating activities P 349.00

Cash flows from financing activities:

Investment by PeanutSarap Group 160.00

Net cash provided by financing activities: 160.00

Net increase in cash P 509.00

Cash balance September 12 P 509.00

PEANUTSARAP GROUP

Projected Balance Sheet

As of September 12, 2013

ASSETS LIABILITIES & OWNER’S EQUITY

Cash P 509.00 PEANUTSARAP Capital P 509.00

TOTAL ASSETS P 509.00 TOTAL LIABILITIES&OE P 509.00

Financial analysis:

Profitability Ratios: Month 1

1) Return on Assets (ROA)

ROA = Net Income / Total Assets

ROA = 349.00 / 509.00

ROA = 0.6857 or 68.57%

This shows the rate of return the business earned for a peso of investment. A high rate means the assets are being used profitably by the business.

2) Return on Equity

ROE = Net Income / Owner’s Equity

ROE = 349.00 / 160

ROE = 2.1813 or 218%

This means that the owners of the business are earning 218% on the investment made.

3) Net Profit Margin

Net Profit Margin = Net Income / Sales

Net Profit Margin = 349.00 / 1350.00

Net Profit Margin = 0.26%

This shows the sufficiency of the sales to earn profit. 0.26% of the revenues earned went to profit, or for a P1 of product rendered, the business earned P.0026 profit. The higher the ratio, the more profitable the business is.

Liquidity Ratio:

1. Current Asset Ratio

Current Asset Ratio = Current Assets / Current Liabilities

Current Asset Ratio = 509.00 / 0

Current Asset Ratio = 509:0

This means that the business has no current assests to pay for a peso of liability.

2. Quick Asset Ratio

Quick Ratio = Current Assets – Inventories / Current Liabilities

Quick Ratio = ( 509.00 – 0 ) / 0

Quick Ratio = 509:0

This shows that the business has no quick assets to pay for a peso of liability.

Leverage Ratio:

1. Debt equity ratio

Debt equity ratio = debt or liabilities / Total assets

Debt equity ratio = 0 / 509

Debt equity ratio = 0 %

This means that 100% of the assets are claimable by the owners making the business very established.

2. Break-even point

BEP = FC / (P – VC) BEP = break-even point

FC = Fixed Cost = 0

P = Price

VC = variable costs per unit

PeanutRoll

BEP = 0 / (2.5 – 1.14)

BEP = 0 / 1.36

BEP = 0 units

The company is getting P1.36 contribution toward covering fixed costs from each unit sold.

3. Investment analysis

The amount of investment that will be placed by the owner will be used for the following expenses:

Ingredients to be used in making the products:

Oil P 11 / 40 pcs

Lumpia Wrapper P 7 / 40 pcs

Peanuts P 16.5 / 40 pcs

Sugar P 6 / 40 pcs

Margarine P 5 / 40 pcs

Chocolate Syrup P 100

Total Capital P 160

4. Supporting schedules

All of the supporting schedules are attached for easy reference and future activities of the business.