2.  ALL PROJECTS ARE CONSIDERED VIABLE
ONLY WHEN THEY ARE EXPECTED TO:
◦ BE PROFITABLE TO MEET SHORT- TERM
OBLIGATIONS
◦ BE LIQUID & TO REMAIN LIQUID DURING
ADVERSITIES
◦ GROW IN THEIR ABILITY FINANCE THEIR
OPERATIONS MOSTLY FROM NET-WORTH
SOURCES RATHER THAN CREDIT APPLICATIONS
◦ BE ABLE TO SERVICE THEIR FINANCING CHARGES.

3.  MAJOR ASSUMPTIONS
 TOTAL PROJECT COSTS
 INITIAL WORKING CAPITAL REQUIREMENTS
 ALTERNATIVE SOURCE OF FINANCING
CONSIDERED, IF ANY
 SOURCES OF FINANCING THE PROJECT
 BEGINNING & PRO-FORMA FINANCIAL
STATEMENTS
 FINANCIAL ANALYSES

4.  IN THE FORMULATION OF FINANCIAL
PROJECTIONS, ASSUMPTIONS PLAY A MAJOR
ROLE BECAUSE THEY SERVE AS THE
FOUNDATION FOR ESTIMATING THE FUTURE
EXPENDITURES, EXPENSES, & REVENUES OF
THE PROJECT AS ACCURATE AS POSSIBLE.
 THESE ASSUMPTIONS, THEREFORE, MUST BE
BASED ON WELL-CONSIDERED, REALISTIC &
WORKABLE FACTS.

5.  1. EXISTING BUSINESS PRACTICES IN THE INDUSTRY
WHERE THE PROJECT BELONGS MAY PROVIDE SOME
VALUABLE INFORMATION & INSIGHTS ON:
◦ CREDIT TERM
◦ CREDIT EXTENSION
◦ BAD-DEBT ALLOCATIONS
◦ BAD-DEBT WRITE-OFF
◦ QUALITY-CONTROL COSTS
◦ DIVIDENT POLICIES
◦ SALES RETURNS, ALLOWANCES, & DISCOUNTS
◦ LABOR & MANAGEMENT COMPENSATION
◦ OVERHEAD ACCOUNTS
◦ INVENTORY COSTING
◦ OPERATING ACCOUNTS
◦ FIXED- ASSET REQUIREMENTS
◦ METHOD OF DEPRECIATION & AMORTIZATION
◦ INTANGIBLE ASSET PRE-REQUISITE

6.  2. PREVIOUSLY MADE FEASIBILITY STUDIES DIRECTLY RELATED
TO THE PROJECT MAY CONTRIBUTE ADDITIONAL FACTORS TO
BE CONSIDERED, WHICH EITHER CONFIRM OR CONTRADICT
FINDINGS IN INDUSTRY STANDARDS, SPECIFICALLY THOSE
ITEMS INVOLVED IN THE COMPUTATIONS OF:
◦ SELLING PRICE
◦ SALES FORECASTS
◦ UNFORSEEN COSTS
◦ PRODUCTION VOLUME
◦ PRODUCT MIX

7.  GOVERNMENTAL REGULATIONS & INCENTIVES DIRECTLY OR
INDIRECTLY AFFECT THE PROJECT, SUCH AS:
◦ IMPORT POLICIES
◦ EXPORT POLICIES
◦ TAX RATES
◦ TAX EXEMPTIONS
◦ PRICE CEILINGS
◦ RELEVANT PRESIDENTIAL DECREES OR LOI

8.  OTHER PERTINENT DATA WHICH CAN JUSTIFY
THE ASSUMPTIONS OF THE STUDY, SUCH AS
◦ INDUSTRY POLICIES
◦ PRE-FEASIBILITY STUDIES
◦ SYMPOSIUM & CONFERENCES, &
◦ MATERIAL OUTPUTS OF INDUSTRY ASSOCIATIONS.

9.  ESTIMATES OF THE PROJECT’S INITIAL
COST/ASSET REQUIREMENT WHICH MUST BE
BASED ON THE MATERIALS, SUPPLIES,
EQUIPMENT, PHYSICAL PLANT, & MANPOWER
NEEDS OF THE PROJECT SPECIFIED IN THE
TECHNICAL PORTION.

10.  LAND & LAND IMPROVEMENTS
◦ COST OF LAND, NOTARY FEES, REGISTRATION DUTIES, &
OTHER RELATED COSTS
 BUILDINGS, INCLUDING ELECTRIC & WATER UTILITIES,
FURNITURE & FIXTURES
◦ BUILDING COST, WELLS, WATER PIPES, ELECTRICAL
CONNECTIONS, GAS SUPPLY, TELEPHONE SYSTEM,
RESERVOIR & TANKS, WASTE WATER DISPOSAL, FENCING,
ROADS & PATHS, EMPLOYEES HOUSING, & FIRE PROTECTION
 EQUIPMENT, PLUS INSTALLATION COSTS
 PURCHASE & INSTALLATION OF MACHINERY
◦ PURCHASE TAXES, FREIGHT & INSURANCE EXPENSES,
CUSTOMS DUTIES
 TRIAL-RUN ASSOCIATED WITH ELECTRIC UTILITIES,
EQUIPMENT & MACHINERY
◦ ELECTRICITY & TELEPHONE LINES, ELECTRICAL EQUIPMENT,
INTERNAL TRANSPORT EQUIPMENT, VEHICLES, OFFICE
EQUIPMENT & SUPPLIES, FURNITURE & FIXTURES,
MAINTENANCE & CLEANING EQUIPMENT, & SPARE PARTS

11.  INVENTORY INVESTMENTS
◦ PURCHASES OF MATERIALS & SUPPLIES
◦ FREIGHT EXPENSES
 INVENTORY-RELATED COSTS
◦ INDIRECT & DIRECT LABOR W/ CORRESPONDING FRINGE BENEFITS
◦ HEAT, LIGHT, & POWER
◦ MAINTENANCE
◦ WAREHOUSING EXPENSES RELATED TO RAW MATERIALS
◦ MATERIALS IN PROCESS
◦ FINISHED GOODS
 CASH CREDITS
◦ PRE-PAID EXPENSES (COST OF INITIAL INVESTIGATIONS, PRE-FEASIBILITY STUDIES,
RESEARCH & TECHNICAL STUDIES, ECONOMIC & MARKETING STUDIES,
FINANCIAL & PROFITABILITY STUDIES, DESIGN STUDIES, &
CONSULTING- ENGINEERING FEES).
◦ INTANGIBLE ASSETS (PATENTS, LICENSES, GOODWILL, REPRODUCTION RIGHTS)
◦ OPERATING SALARIES
◦ WAGES & FRINGE BENEFITS
◦ ENGINEERING COSTS
◦ OPERATING TAXES
◦ OFFICE SUPPLIES
◦ COMMUNICATION FACILITIES
◦ OFFICE UTILITIES
◦ BILLING COSTS
◦ TRANSPORTATION COSTS
◦ EXPENSES FOR ADVERTISING
◦ BORROWING COSTS
◦ PROVISIONS FOR UNFORSEEN COSTS

12.  STEPS IN DECIDING ON THE FINANCING
SCHEME TO SUPPORT THE PROJECT:
◦ LIST THE ALTERNATIVE SOURCES OF FINANCING
◦ DETERMINE SOURCES SELECTED OR PROPOSED AS A
FUNCTION OF MAXIMUM PROFITABILITY
◦ FINALIZE THE AMOUNT & TERMS FOR EACH SOURCE
SELECTED
◦ STATE THE STATUS OF FINANCING FROM EACH
SOURCE
◦ SPECIFY THE FINANCING OF CONTINGENCIES &
FLUCTUATIONS IN WORKING CAPITAL
◦ PINPOINT ALTERNATIVE SOURCES OF FINANCING IN
ORDER OF PRIORITY

13.  PRESENT IN AN ORDERLY &
UNDERSTANDABLE FORM THE CASH BUDGET,
THE OPERATING PERFORMANCE, & THE
FINANCIAL CONDITION OF A BUSINESS
ENTERPRISE
 IT DEPICT THE PROGRESS OF A FIRM IN
FINANCIAL TERMS

14.  1. THE INCOME STATEMENT- IS THE
COMPUTATION OF THE PROJECT’S TOTAL
REVENUES & TOTAL COST FOR ONE PERIOD
OR FISCAL YEAR,THEREBY ARRIVING AT THE
CONCERN’S NET INCOME OR DEFICIT WITHIN
THE PERIOD, TOGETHER WITH ITS
PERFORMANCE IN TERMS OF PROFITABILITY &
COST CONTROL

15.  2. THE CASH-FLOW STATEMENT or THE CASH
BUDGET- IS A SYSTEMATIC PRESENTATION OF
CASH RECEIPTS & DISBURSEMENTS FOR A
GIVEN OPERATING PERIOD OR FISCAL YEAR,
TAKING FOR GRANTED THE “ACCRUAL
CONCEPT” IN ACCOUNTING.

16.  3. THE BALANCE SHEET- SHOWS THE ASSETS
DERIVED BY THE PROJECT FROM CORRESPONDING
LIABILITIES & EQUITIES (NET WORTH). IT IS AN
OVERALL PICTURE OF A FIRM’S FINANCIAL
CONDITION AS OF A CETAIN TIME.

17.  THIS PORTION GAUGES THE PROJECT’S
PROFITABILITY, LIQUIDITY, CASH SOLVENCY &
GROWTH OVER TIME.

18.  THESE MEASURES ARE USED TO DETERMINE A FIRM’S ABILITY TO MEET
SHORT-TERM OBLIGATIONS, & TO REMAIN SOLVENT IN THE EVENT OF
ADVERSITIES.
◦ 1. CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITIES
◦ 2. QUICK or ACID-TEST RATIO = CURRENT ASSETS- INVENTORIES
CURRENT LIABILITIES
◦ 3. LIQUIDITY OF INVENTORIES = COST OF SALES
AVERAGE INVENTORY
◦ 4. DEFENSIVE POSITION = CASH + MARKETABLE SECURITIES + RECEIVABLES
PROJECTED OPERATING EXPENDITURE/NUMBER OF DAYS

19.  THESE TESTS ARE EMPLOYED TO PRESENT THE PROJECT’S ABILITY
TO MEET LONG-TERM OBLIGATIONS.
◦ 1. DEBT-TO-NETWORTH RATIO = TOTAL LIABILITIES
TOTAL EQUITIES
◦ 2. TOTAL CAPITALIZATION RATIO = LONG-TERM LIABILITIES
LONG-TERM LIABILITIES & EQUITIES

20.  THESE SHOWS THE OPERATIONAL PERFORMANCE & EFFICIENCY OF
THE PROJECT.
◦ 1. NET PROFIT MARGIN = NET INCOME AFTER TAX
SALES
◦ 2. OPERATING PROFIT MARGIN = PROFIT BEFORE INTEREST & TAXES
SALES
◦ 3. GROSS PROFIT MARGIN = GROSS PROFIT
SALES
◦ 4. RETURN ON FINANCIER’S INVESTMENT = NET INCOME + INTEREST
STOCK EQUITY & LONG-TERM LIABILITY
◦ 5. RETURN ON OWNER’S INVESTMENT = NET INCOME
STOCK EQUITY
◦ 6. RETURN ON COMMON STOCK EQUITY = NET INCOME – PREFERRED STOCK DIVIDENDS
NET-WORTH – PAR VALUE OF PREFERRED STOCK
◦ 7. RETURN ON NET OPERATING PROFIT = PROFIT BEFORE INTEREST & TAXES
TOTAL TANGIBLE ASSETS
◦ 8. ASSET TURNOVER = SALES
TOTAL TANGIBLE ASSETS
◦ 9. RETURN ON ASSETS, OR EARNING POWER = NET INCOME
TOTAL TANGIBLE ASSETS

21.  TEST OF TOTAL DEBT COVERAGE = PROFIT BEFORE INTEREST & TAXES
(INTEREST + PRINCIPAL PAYMENT)
(1/1 – INCOME TAX RATE)

22.  THIS TECHNIQUE IS EMPLOYED TO DETERMINE THE
MAJOR USES & SOURCES OF FUNDS WITHIN ONE YEAR
IN A PROJECT’S LIFE.
◦ 1. CASH-FLOW ANALYSIS
 a. SOURCES OF FUNDS:
 NET DECREASE IN ANY ASSET OTHER THAN CASH
 NET INCREASE IN ANY LIABILITY
 PROCEEDS FROM THE SALE OF STOCKS
 FUNDS PROVIDED BY OPERATIONS
 b. USES OF FUNDS:
 NET INCREASE IN ANY ASSET OTHER THAN CASH & FIXED ASSETS
 GROSS INCREASE IN FIXED ASSETS
 NET DECREASE IN ANY LIABILITY
 A RETIREMENT OF STOCK
 CASH DIVIDENDS

23. ◦ 2. WORKING CAPITAL-FLOW ANALYSIS
 a. SOURCES OF FUNDS:
 NET DECREASE IN ANY ASSET OTHER THAN CURRENT ASSETS
 NET INCREASE IN LONG-TERM LIABILITIES
 PROCEEDS FROM THE SALE OF STOCKS
 FUNDS PROVIDED BY OPERATIONS
 b. USES OF FUNDS:
 NET INCREASE IN OTHER ASSETS
 GROSS INCREASE IN FIXED ASSETS
 NET DECREASE IN LONG-TERM LIABILITIES
 RETIREMENT OF STOCK
 CASH DIVIDENDS

24.  THESE FUNCTIONS INDICATE HOW THE PROJECT EMPLOYS ASSETS FOR
WHICH IT PAYS A FIXED COST. BEFORE THESE TESTS ARE APPLIED, A
CLARIFICATION SHOULD BE MADE ON WHAT “VARIABLE” & “FIXED” COSTS
ARE.
◦ 1. BREAK-EVEN VOLUME ANALYSIS
BEV = FIXED COSTS
SELLING PRICE – VARIABLE COST/UNIT
◦ 2. BREAK-EVEN CASH ANALYSIS
BEC = CASH FIXED COSTS
SELLING PRICE – CASH VARIABLE COST/UNIT
◦ 3. BREAK-EVEN SELLING PRICE ANALYSIS
BESP = VARIABLE COSTS + FIXED COSTS
UNIT VOLUME
= TOTAL COST X SELLING PRICE
SALES
◦ 4. BREAK-EVEN SALES ANALYSIS
BES = BESP X UNIT VOLUME
= FIXED COST
1 – (VARIABLE COST/NET SALES)

25.  THESE TECHNIQUES PRESENT HOW A PROJECT EMPLOYS
FUNDS WHICH PAY A FIXED RETURN.
◦ EARNINGS PER SHARE = NET INCOME
SHARES
◦ DIVIDENDS PER SHARE = NET INCOME – PREFERRED STOCK DIVIDENDS – RETAINED EARNINGS
COMMON SHARE

26.  THESE FINANCIAL TOOLS EVALUATE THE
JUSTIFICATION FOR INVESTING IN THE
PROJECT.
◦ AVERAGE RATE OF RETURN = AVERAGE NET INCOME
AVERAGE NET INVESTMENT
◦ PAYBACK PERIOD IN YEARS = INITIAL-YEAR CASH OUTFLOW
SUCCEEDING ANNUAL NET CASH FLOW
◦ CAPITAL RECOVERY OR CASH PAY-OFF PERIOD IN YEARS = STOCKS
ANNUAL CASH DIVIDENDS

27. Expected Sales
Less: Raw materials
Labor cost
Utilities
Marketing expenses
Depreciation costs
Others
Equals: Net profits
ROI = Net profit / Total expenses X 100%.

28. PARTICULAR Y1 Y2 Y3 Y4 Y5
Sales in units
Product X @ P68.00
25, 000.00 43, 000.00 51, 800.00 54, 000.00 57, 100.00
Sales 1, 700, 000.00 2, 924, 000.00 3, 522, 400.00 3, 672, 000.00 3, 882, 800.00
LESS: Cost of Sales
Direct materials & labor
Manufacturing overhead
776, 300.00
73, 200.00
1, 237, 300.00
131, 800.00
1, 534, 700.00
143, 800.00
1, 559, 000.00
157, 000.00
1, 636, 800.00
171, 400.00
Total 849, 500.00 1, 369, 100.00 1, 678, 500.00 1, 716, 000.00 1, 808, 200.00
Raw materials inventory, beginning 0.00 54, 500.00 54, 500.00 104, 500.00 104, 500.00
Raw materials inventory, ending (54, 500.00) (54, 500.00) (104, 500.00) (104, 500.00) (194, 500.00)
Cost of Sales 795, 000.00 1, 369, 100.00 1, 628, 500.00 1, 716, 000.00 1, 718, 200.00
Gross Profit on Sales 905, 000.00 1, 554, 900.00 1, 893, 900.00 1, 956, 000.00 2, 164, 600.00
LESS: Operating expenses
Salaries and Wages 107, 800.00 221, 700.00 266, 200.00 319, 400.00 383, 200.00
Employee’s benefits 21, 500.00 31, 000.00 37, 000.00 44, 700.00 53, 700.00
Representation 6, 000.00 6, 000.00 6, 000.00 6, 000.00 6, 000.00
Retainer’s fee 6, 300.00 10, 800.00 10,800.00 11, 800.00 13, 000.00
Taxes and licenses 9, 200.00 9, 200.00 9, 200.00 10, 100.00 11, 100.00
Rental 2, 500.00 6, 000.00 6, 000.00 6, 100.00 6, 500.00
Office supplies 1, 500.00 2, 600.00 2, 900.00 3, 200.00 3, 500.00
Light and power 1, 100.00 1, 900.00 2, 100.00 2, 400.00 2, 600.00
Miscellaneous 7, 800.00 14, 500.00 17, 000.00 20, 200.00 24, 000.00
Allowance for depreciation 1, 500.00 2, 500.00 2, 500.00 2, 500.00 2, 500.00
Provisions for bad debts 15, 000.00 10, 000.00 5, 000.00 2, 000.00 2, 100.00
Amortization of operating expenses 2, 000.00 2, 000.00 2, 000.00 2, 000.00 2, 000.00
Total operating expenses 182, 200.00 318, 200.00 366, 700.00 430, 400.00 509, 600.00
Income operating expenses 722, 800.00 1, 236, 700.00 1, 527, 200.00 1, 525, 600.00 1, 655, 000.00
LESS: Financial charges 18, 000.00 .00 .00 .00 .00
Income before income tax 704, 800.00 1, 236, 700.00 1, 527, 200.00 1, 525, 600.00 1, 655, 000.00
Income tax 246, 600.00 432, 800.00 534, 500.00 533, 900.00 547, 700.00
SAMPLE PROJECTED INCOME STATEMENT

29. Projected Income Statement
For the years ended December 31,2011-2015
2011 2012 2013 2014 2015
Net Sales (Schedule 1) 192,469,820.22 224,547,396.48 261,151,729.98 302,873,254.90 350,380,415.90
Less: Cost of Goods Sold (Schedule 2) 68,980,408.74 76,640,389.80 84,354,256.81 92,497,006.62 100,847,746.28
Gross Profit 123,489,411.48 147,907,006.68 176,797,473.17 210,376,248.28 249,532,669.62
Less: Administrative Expenses
Organizational Cost 9,551,729.00
Amortization of Software 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Office Supplies Expense (Schedule 4) 130,968.00 154,542.24 162,125.29 167,431.06 172,520.30
Insurance Expense (Schedule 5) 215,223.53 221,680.24 228,330.66 235,180.57 242,236.00
Depreciation Expense (Schedule 6) 1,712,027.33 1,712,027.33 1,712,027.33 1,712,027.33 1,712,027.33
Salaries Expense (Schedule 7) 6,435,000.00 6,435,000.00 6,435,000.00 6,435,000.00 6,435,000.00
SSS Contribution (Schedule 7) 273,679.20 273,679.20 273,679.20 273,679.20 273,679.20
Pag-Ibig Contribution (Schedule 7) 43,200.00 43,200.00 43,200.00 43,200.00 43,200.00
Philhealth Contribution (Schedule 7) 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00
Utilities Expense (Schedule 8) 1,485,160.00 1,529,714.80 1,575,606.24 1,622,874.43 1,671,560.66
Property Tax (Schedule 11) 108,578.26 111,835.61 115,190.68 118,646.40 122,205.80
Repairs and Maintanance (Schedule
12) 72,000.00 74,160.00 76,384.80 78,676.34 81,036.63
Advertising Expense (Schedule 13) 257,500.00 265,225.00 273,181.75 281,377.20 289,818.52
Training Expenses (Schedule 15 ) 1,757,500.00 1,757,500.00 1,757,500.00 1,757,500.00 1,757,500.00
Miscellaneous Expense (Schedule 16) 19,456.28 19,456.28 19,456.28 19,456.28 19,456.28
Total Administrative Expenses 22,152,021.60 12,688,020.70 12,761,682.22 12,835,048.82 12,910,240.72
Total 101,337,389.88 135,218,985.98 164,035,790.95 197,541,199.46 236,622,428.90
Add: Interest Income on Bonds (Schedule 16) 2,100,000.00 4,900,000.00 10,500,000.00 24,500,000.00
Income before Interest and Taxes 101,337,389.88 137,318,985.98 168,935,790.95 208,041,199.46 261,122,428.90
Less: Interest Expense (Schedule 10) 24,000,000.00 15,600,000.00 7,800,000.00 0.00 0.00
Income before Taxes 77,337,389.88 121,718,985.98 161,135,790.95 208,041,199.46 261,122,428.90
Less: Income Tax 35% (Schedule 14) 27,068,086.46 42,601,645.09 56,397,526.83 72,814,419.81 91,392,850.12
Net Income 50,269,303.42 79,117,340.89 104,738,264.12 135,226,779.65 169,729,578.79

30. Item Period 1 Period 2 Period 3
Sales
Expenses
_________
_________
_________
_________
Add: beg balance
Ending cash balance

31. Cash Flow from Operating Activities
(Inc.) Dec. in Prepaid Insurance (2,396,457.43)
Net Cash Provided by (used in) Operating Activities (2,396,457.43)
Cash Flow from Investing Activities
Purchased of Fixed Assets (420,587,622.00)
Payments for Organization/Pre-Operating Cost (9,551,729.00)
Net Cash Flow Provided by (used in) Investing Activities (430,139,351.00)
Cash Flow from Financing Activities
Proceeds from Issuance of Stocks 300,000,000.00
Proceeds from Bank Loan 150,000,000.00
Net Cash Provided by (used in) Financing Activities 450,000,000.00
Net Increase (Decrease) in Cash 17,464,191.57
Cash Balance, Beg. 0.00
Cash Balance, End. 17,464,191.57

32. PARTICULAR Y1 Y2 Y3 Y4 Y5
CASH FLOWS:
Operational Inflows:
Sales
1, 700, 000.00 2, 924, 000.00 3, 522, 400.00 3, 672, 000.00 3, 882, 800.00
Adjustment for receivables:
Beginning
Ending
0.00
(300, 000.00)
300, 000.00
(497, 000.00)
497, 000.00
(598, 800.00)
598, 800.00
(624, 200.00)
624, 200.00
(660, 000.00)
Net inflow from sales 1, 400, 000.00 2, 727, 000.00 3, 420, 600.00 3, 646, 600.00 3, 847, 000.00
Non-operational inflows:
Loan Proceeds
Paid-up capital
200, 000.00
100, 000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total non- operational inflows 300, 000.00 0.00 0.00 0.00 0.00
Total Cash Inflows 1, 700, 000.00 2, 727, 000.00 3, 420, 600.00 3, 646, 600.00 3, 847, 000.00
Cash Outflows:
Cash Operating Expenses 1, 197, 500.00 2, 093, 100.00 2, 508, 200.00 2, 661, 300.00 2, 846, 400.00
Adjustment for accounts payable:
Beginning
Ending
0.00
(105, 700.00)
105, 700.00
(108, 200)
0.00
108, 200.00
0.00
133, 600.00
0.00
133, 400.00
Build-up of inventories 54, 500.00 0.00 (133, 600.00) (133, 400.00) (136, 900.00)
Total Operating Outflow 1, 146, 300.00 2, 090, 600.00 50, 000.00 0.00 0.00
Non-operating outflow 2, 532, 800.00 2, 661, 500.00 2, 842, 900.00
Debt servicing:
Principal
Interest
200, 000.00
18, 000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Fixed Asset acquisitions:
Land & land improvements
Building
Machinery & equipment
Delivery of equity
Office equipment
85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Pre-operating expenses
Sales tax
Dividends
10, 000.00
85, 000.00
0.00
0.00
146, 200.00
250, 000.00
0.00
176, 100.00
634, 700.00
0.00
183, 600.00
800, 000.00
0.00
194, 100.00
700, 000.00
Total non-operating outflow 548, 000.00 396, 200.00 810, 800.00 983, 600.00 894, 100.00
Total cash outflow 1, 694, 300.00 2, 486, 800.00 3, 343, 600.00 3, 645, 100.00 3, 737, 000.00
Net cash inflow/ (outflow)
ADD: Beginning cash balance
5, 700.00
0.00
240, 200.00
5, 700.00
77, 000.00
245, 900.00
1, 500.00
322, 900.00
110, 000.00
324, 400.00

33. Projected Cash Flow Statement
For the years ended December 31,2008-2012
2011 2012 2013 2014 2015
Cash Flow from Operating Activities
Net Income 50,269,303.42 79,117,340.89 104,738,264.12 135,226,779.65 169,729,578.79
Adjustments to Reconcille Net Income
Organization Cost 9,551,729.00
Amortization of Software 30,000.00 30000 30000 30000 30000
Depreciation Expense 19,245,640.67 19,245,640.67 19,245,640.67 19,245,640.67 19,245,640.67
(Inc.) Dec. Accounts Receivable (2,004,897.46) (334,145.84) (381,293.93) (434,592.51) (494,871.93)
(Inc.) Dec. Inventory (1,190,113.46) (192,540.91) (171,642.97) (193,190.47) (201,069.07)
(Inc.) Dec. in Factory Overhead Supplies (49,224.00) (1,476.00) (1,464.00) (1,464.00) (1,524.00)
(Inc.) Dec. Unused Office Supplies (23,112.00) (4,160.16) (1,338.18) (936.31) (898.10)
(Inc.) Dec. in Prepaid Insurance (71,893.74) (74,050.55) (76,272.06) (78,560.00) (80,917.01)
Inc. (Dec.) Accounts Payable 386,123.00 7,777.00 11,756.00 11,756.00 11,761.00
Inc. (Dec.) SSS Contribution Payable 82,776.32
Inc. (Dec.) Pag-Ibig Contribution Payable 17,000.00
Inc. (Dec.) Philhelth Contribution Payable 23,025.00
Inc. (Dec.) Witholding Tax Contribution Payable 126,757.82
Inc. (Dec.)Utilities Payable 1,760,390.00 52,818.57 54,396.26 56,029.39 57,709.02
Inc. (Dec.) Vat Payable 577,409.46 96,232.73 109,813.00 125,164.58 142,521.48
Inc. (Dec.) Interest Payable 12,000,000.00 (4,200,000.00) (3,900,000.00) (3,900,000.00)
Inc. (Dec.) Income Tax Payable 6,920,802.86 3,883,389.66 3,448,970.43 4,104,223.25 4,644,607.58
Net Cash Provided by (used in) Operating Activities 97,651,716.89 97,626,826.05 123,106,829.33 154,190,850.25 193,082,538.42
Cash Flow from Investing Activities
Purchased of Fixed Assets
Investment in Bonds (15,000,000.00) (20,000,000.00) (40,000,000.00) (100,000,000.00) (135,000,000.00)
Additional Investment on tank (540,000.00) (556,200.00) (572,886.00) (590,072.58) (607,774.76)
Net Cash Flow Provided by (used in) Investing Activities (15,540,000.00) (20,556,200.00) (40,572,886.00) (100,590,072.58) (135,607,774.76)
Cash Flow from Financing Activities
Proceeds from Issuance of Stocks
Proceeds from Bank Loan
Payments Of Dividends 0.00 (12,500,000.00) (17,500,000.00) (45,000,000.00) (57,500,000.00)
Payment of Bank Loan (70,000,000.00) (65,000,000.00) (65,000,000.00) 0.00 0.00
Net Cash Provided by (used in) Financing Activities (70,000,000.00) (77,500,000.00) (82,500,000.00) (45,000,000.00) (57,500,000.00)
Net Increase (Decrease) in Cash 12,111,716.89 (429,373.95) 33,943.33 8,600,777.67 (25,236.34)
Cash Balance, Beg. 17,464,191.57 29,575,908.46 29,146,534.51 29,180,477.85 37,781,255.51
Cash Balance, End. 29,575,908.46 29,146,534.51 29,180,477.85 37,781,255.51 37,756,019.18

34. Item
Assets
Cash
Account receivables
Inventory
Machinery equipment
Furniture and fixture
Building
Liabilities
Accounts payable
Bank loans
Business Capital
Total Assets = Total Liabilities + Capital

35. Assets:
Current Assets
Cash 20,464,191.57
Prepaid Insurance 2,396,457.43
Total Current Assets 22,860,649.00
Non-Current Assets
Property Plant and Equipment 420,587,622.00
Organization Cost 6,551,729.00
Total Non-Current Assets 427,139,351.00
Total Assets 450,000,000.00
Liabilities and Stockholders Equity:
Non-Current Liability
Bank Loan 200,000,000.00
Stockholders' Equity
Common Stock, 100par, 5,000,000 shares authorized 250,000,000.00
Total Liabilities and Stockholders' Equity 450,000,000.00

36. PARTICULAR Y1 Y2 Y3 Y4 Y5
ASSETS
Current Assets:
Cash on Hand
Accounts receivables
LESS: Allowances for bad debts
Inventories:
Raw materials
Finished goods
Goods in process
5, 700.00
300, 000.00
(15, 000.00)
54, 000.00
0.00
0.00
245, 900.00
497, 000.00
(25, 000.00)
54, 000.00
0.00
0.00
322, 900.00
598, 800.00
(30, 000.00)
104, 500.00
0.00
0.00
324, 400.00
624, 200.00
(32, 000.00)
104, 500.00
0.00
0.00
434, 400
660, 000.00
(34, 000.00)
104, 500.00
0.00
0.00
TOTAL CURRENT ASSETS 344, 700.00 771, 900.00 996, 200.00 1, 021, 100.00 1, 164, 800.00
Fixed Assets:
Land & land improvements
Buildings
Machinery & equipment
Delivery equity
Office equipment
85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00
85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00
85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00
85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00
85, 000.00
90, 000.00
40, 000.00
15, 000.00
5, 000.00
Total fixed assets 235, 000.00 235, 000.00 235, 000.00 235, 000.00 235, 000.00
LESS: Accumulated depreciation (8, 800.00) (23, 800.00) (38, 000.00) (53, 800.00) (68, 800.00)
Net book value 226, 200.00 211, 100.00 196, 200.00 181, 200.00 166, 200.00
Deferred charges
Organization & pre-operating expenses 8, 000.00 6, 000.00 4, 000.00 2, 000.0 0.00
TOTAL ASSETS 578, 900.00 989, 100.00 1, 196, 400.00 1, 204, 300.00 1, 331, 000.00
SAMPLE. PROJECTED BALANCE SHEET

37. LIABILITIES & OWNER’S EQUITY
Current Liabilities:
Accounts payable
Income tax payable
0.00
105, 700.00
0.00
108, 200.00
0.00
133, 600.00
0.00
133, 400.00
0.00
136, 900.00
Total current liabilities 105, 700.00 108, 200.00 133, 600.00 133, 400.00 136, 900.00
Long-term liability
Total Liabilities 105, 700.00 108, 200.00 133, 600.00 133, 400.00 136, 900.00
OWNER’S EQUITY
Contributed Capital 100, 000.00 100, 000.00 100, 000.00 100, 000.00 100, 000.00
Retained Earnings:
Balance, beginning 0.00 373, 200.00 780, 900.00 962, 800.00 970, 900.00
Net Income before the year 458, 200.00 803, 900.00 992, 700.00 991, 700.00 1, 017, 300.00
Dividends paid 0.00 (250, 000.) (634, 700.00) (800, 000.00) (7000,00.00)
Sales tax (85, 000.00) (146, 200.00) (176, 100.00) (183, 600.00) (194, 100.00)
Total Owner’s Equity 473, 200.00 800, 900.00 1, 062, 800.00 1, 070, 900.00 1, 194, 100.00
TOTAL LIABILITIES & OWNER’S EQUITY 578, 900.00 989, 100.00 1, 196, 400.00 1, 204, 300.00 1, 331, 000.00

38. Projected Balance Sheet
As of December 31,2008-2012
Assets 2011 2012 2013 2014 2015
Current Assets
Cash 29,575,908.46 29,146,534.51 29,180,477.85 37,781,255.51 37,756,019.18
Accounts Receivable (Schedule 1) 2,004,897.46 2,339,043.30 2,720,337.23 3,154,929.74 3,649,801.67
Inventory (Schedule 2) 1,190,113.46 1,382,654.37 1,554,297.34 1,747,487.81 1,948,556.88
Factory Overhead Supplies (Schedule 3) 49,224.00 50,700.00 52,164.00 53,628.00 55,152.00
Unused Office Supplies (Schedule 4) 23,112.00 27,272.16 28,610.34 29,546.66 30,444.76
Prepaid Insurance (Schedule 5) 2,468,351.17 2,542,401.72 2,618,673.78 2,697,233.78 2,778,150.79
Total Current Assets 35,311,606.55 35,488,606.06 36,154,560.54 45,464,081.50 46,218,125.28
Non-Current Assets
Property Plant and Equipment (Schedule 6) 401,851,981.33 383,132,540.66 364,429,782.99 345,744,214.90 327,076,348.99
Investment in Bonds 15,000,000.00 35,000,000.00 75,000,000.00 175,000,000.00 310,000,000.00
Total Non-Current Assets 416,851,981.33 418,132,540.66 439,429,782.99 520,744,214.90 637,076,348.99
Total Assets 452,163,587.88 453,621,146.72 475,584,346.53 566,208,299.39 683,294,477.26
Liabilities and Stockholders Equity
Current Liabilities
Accounts Payable (Schedule 3) 386,123.00 393,900.00 405,656.00 417,412.00 429,173.00
SSS Contribution Payable (Schedule 7) 82,776.32 82,776.32 82,776.32 82,776.32 82,776.32
Pag-Ibig Contribution Payable (Schedule 7) 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00
Philhealth Contribution Payable (Schedule 7) 23,025.00 23,025.00 23,025.00 23,025.00 23,025.00
Witholding Tax Contribution Payable (Schedule 7) 126,757.82 126,757.82 126,757.82 126,757.82 126,757.82
Utilities Payable (Schedule 8) 1,760,390.00 1,813,208.57 1,867,604.82 1,923,634.22 1,981,343.24
VAT Payable (Schedule 9) 577,409.46 673,642.19 783,455.19 908,619.77 1,051,141.25
Interest Payable (Schedule 10) 12,000,000.00 7,800,000.00 3,900,000.00 0.00 0.00
Income Tax Payable (Schedule 14) 6,920,802.86 10,804,192.52 14,253,162.96 18,357,386.20 23,001,993.78
Total Current Liabilities 21,894,284.46 21,734,502.41 21,459,438.11 21,856,611.32 26,713,210.40
Non-Current Liability
Bank Loan (Schedule 10) 130,000,000.00 65,000,000.00 0.00 0.00 0.00
Total Liabilities 151,894,284.46 86,734,502.41 21,459,438.11 21,856,611.32 26,713,210.40
Stockholders' Equity
Common Stock, 100par, 5,000,000 shares authorized 250,000,000.00 250,000,000.00 250,000,000.00 250,000,000.00 250,000,000.00
Retained Earnings 50,269,303.42 116,886,644.31 204,124,908.42 294,351,688.07 406,581,266.86
Total Stockholders' Equity 300,269,303.42 366,886,644.31 454,124,908.42 544,351,688.07 656,581,266.86
Total Liabilities and Stockholders' Equity 452,163,587.88 453,621,146.72 475,584,346.53 566,208,299.39 683,294,477.26