Healthy Bread Delight

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 CHAPTER 6

FINANCIAL ASPECT

This chapter discusses the financial aspects of the study, in order for a business plan

to understand it needs money to start. To determine whether the future industry will

remain profitable through the existence of competitors and unfavorable economic

condition, the researchers have to project a five year financial statement.

This chapter includes the source of funds, balance sheet, income statement, cost of

goods sold and cost of sales.

Financial Assumptions

1. Selling Price of Veggie Bread are the following:

Healthy Bread Delight (Price List)

Product Price

Cinnamon bun P 15.00

Carrot-cheese roll 15.00

German bread 20.00

Croissant 20.00

2. Sales demand increases 10% per year

3. Raw Materials increases 5% per year

4. Depreciation expense is computed in a straight line basis with an estimated useful

life of 3 years

5. 50% of net income will be distributed after 3 years.

Initial Capital Requirements

The partners agreed to contribute an equal sharing of capital in amount of P

20,000.00 each.

Initial Capital Requirements

Partners Ratio Invested Amount

Setty Hakeema A. Maglangit 25% ₱ 20,000.00
Jabber Mimbantas 25% 20,000.00
Hanifa 25% 20,000.00
Norfaidah 25% 20,000.00

TOTAL 100% ₱ 80,000.00

Cost and Expense Schedule

Schedule 1:
Purchase of Raw Materials

Item Quantity per production Unit Price Amount

Monthly Yearly
Flour 4 ¾sack 57 sack ₱ 840.00 ₱ 47,880.00
White sugar ½ sack 6 sack 350.00 2,100.00
Yeast 1 ½ kilo 18 kilos 350.00 6,300.00
Salt 360 grams 4320 grams 1.00 4,320.00
Butter 360 grams 4320 grams 5.00 21,600.00
Oil 150 grams 1800 grams 2.14 3,852.00
Egg 450 pcs 5400 pcs 67.50 364,500.00
Powdered Milk 90 grams 1080 grams 10.00 10,800.00
Malunggay 300 bunches 3600 bunches 2.00 7,200.00
Squash 20 pcs 240 pcs 30.00 7,200.00
Peanut Butter 45 jars 540 jars 40.00 21,600.00
Choco Flavor 600 packs 7200 packs 6.25 45,000.00
Condensed Milk 4 cans 48 cans 32.00 1,536.00
Monggo 15 kilos 180 kilos 21.00 3,780.00

Total ₱ 1,726.89 ₱468552.00

 Schedule 2: Rent Expense

Monthly Annual Cost

₱ 4,000.00 ₱ 48,000.00

Schedule 3: Salaries and Wages

Position Cost Per Month Cost Per Annual

Manager ₱ 4,000.00 ₱48,000.00
Cashier 2,000.00 24,000.00
Waitress 1,500.00 18,000.00
Baker 3,500.00 42,000.00

Total ₱ 11,000.00 ₱132,000.00

Schedule 4: Office Supplies

Item Quantity Price Annual Cost

Record Book 2 ₱ 80.00 ₱ 160.00
Official Receipt 30 20.00 600.00
Ball pen 12 5.50 66.00
Bond paper 2 50.00 100.00
Puncher 1 65.00 65.00
Stapler 2 32.00 64.00
Staple wire 10 7.00 70.00
Fastener 1 30.00 30.00

Total ₱ 1,155.00
 Schedule 5: Packaging

Item Quantity Price Monthly Annual Cost

Paper Bag 35 ₱ 60.00 ₱ 2,100.00 ₱ 25,200.00
Box 30 5.00 150.00 1,800.00

Total ₱ 27,000.00

Schedule 6: Transportation Cost

Item Cost per month Annual Cost

Delivery Expense ₱ 4,800.00 ₱57,600

Total ₱57,600

Schedule 7: Promotional Expenses

Cost No. of Months Annual Cost

Free Taste ₱ 1,500.00 Introduction of the ₱ 1,500.00
product
Flyers 250.00 12 3,000.00

Total ₱ 4,500.00

Schedule 8: Office Furniture & Fixtures

Item Quantity Price Amount Estimated Depreciation

Useful Life Expense
Table 1 ₱ 1,500.00 ₱ 1,500.00 3 ₱500.00
Office chair 2 300.00 600.00 3 200.00
Ceiling fan 1 750.00 750.00 3 250.00
Cabinets 1 1,000.00 1,000.00 3 333.33

Total ₱ 3,850.00 ₱ 1,283.33

 Schedule 9: Equipment

Item Quality Price Amount

Computer 1 ₱ 15,000.00 ₱ 15,000.00

Schedule 10: Depreciation Expense

Item Cost Estimated Depreciation

Useful Life
2022 2023 2024
Office Furniture ₱ 3,850.00 (please see ₱ 1,283.33 ₱ 2,566.67 ₱ 3,850.00
& Fixtures schedule 7)
Office 15,000.00 5 3,000.00 6,000.00 9,000.00
Equipment

Total ₱ 4,283.33 ₱ 8,566.67 ₱ 12,850.00

Statement of Cost of Goods Sold

2022 2023 2024

Beg. Inventory
Add:
Purchase of Raw Materials ₱ 491,979.60 ₱ 516,578.58 ₱ 542,407.51
Direct Labor 42,000.00 42,000.00 42,000.00
Overhead:
Packaging 27,000.00 27,000.00 27,000.00

Cost of Goods Sold ₱ 560,979.60 ₱ 585,578.58 ₱ 611,407.51

 Projected Demand and Sales For 2022-2024

Demand 2022 2023 2024

Cinnamon bun ₱ 14,400.00 ₱ 15,840.00 ₱ 17,424.00
Carrot-cheese roll 14,400.00 15,840.00 17,424.00
German Bread 14,400.00 15,840.00 17,424.00
Croissant 14,400.00 15,840.00 17,424.00
Total 57,600.00 63,360.00 69,696.00

Sales
Cinnamon bun 216,000.00 237,600.00 261,360.00
Carrot-cheese roll 216,000.00 237,600.00 261,360.00
German Bread 288,000.00 316,800.00 348,480.00
Croissant 288,000.00 316,800.00 348,480.00

Total ₱ 1,008,000.00 ₱ 1,108,800.00 ₱ 1,219,680.00

Projected Cost for the year 2022-2024

2022 2023 2024

₱ 491,979.60 ₱ 516,578.58 ₱ 542,407.51

Cost Schedule Per Product

Fillings
Cinnamon bun ₱ 406.91 ₱ 40.00 ₱ 446.91 26%
Carrot-cheese roll 406.91 21.00 427.91 25%
German Bread 406.91 6.25 413.16 24%
Croissant 406.91 32.00 438.91 25%

₱ 1,726.89 100%
 Product Name Quantity Price Per Cost Per Contribution Margin
Produce Product Unit

2022 2023 2024

Cinnamon bun ₱ 40.00 ₱ 15.00 ₱ 11.17275 ₱ 3.83 ₱ 4.02 ₱ 4.22
Carrot-cheese roll 40.00 15.00 10.69775 4.30 4.52 4.74
German Bread 40.00 20.00 10.329 9.67 10.15 10.66
Croissant 40.00 20.00 10.97275 9.03 9.48 9.95

Total ₱ 26.83 ₱ 28.17 ₱ 29.58

Healthy Bread Delight

Projected Income Statement
For the year ended Dec. 31, 2022 - Dec. 25, 2024

2022 2023 2024

Sales ₱ 1,008,000.00 ₱ 1,108,800.00 ₱ 1,219,680.00
Less: Cost of Goods Sold 560,979.60 585,578.58 611,407.51
Gross Income 447,020.40 23,221.42 608,272.49

Less: Operating Expenses

Rent Expense 48,000.00 48,000.00 48,000.00
Salary 90,000.00 90,000.00 90,000.00
Office Supplies 1,155.00 1,155.00 1,155.00
Transportation Expense 57,600.00 57,600.00 57,600.00
Promotional Expense 4,500.00 4,500.00 4,500.00
Depreciation Expense 4,283.33 4,283.33 4,283.33
Total Operational Expenses 205,538.33 205,538.33 205,538.33

Income Before Tax 241,482.07 317,683.09 402,734.16

Less: Income Tax (32%) 77,274.26 101,658.59 128,874.93

Net Income ₱ 164,207.81 ₱ 216,024.50 ₱ 273,859.23

 Healthy Bread Delight
Projected Statement of Cash flow
For the year ended Dec. 31, 2022 - Dec. 25, 2024

2022 2023 2024

Cash Inflows
Cash, Beginning ₱ 229,641.14 ₱ 449,948.97
Partners Contribution ₱ 80,000.00
Sales 1,008,000.00 1,108,800.00 1,219,680.00
Total Cash Inflows 1,088,000.00 1,338,441.14 1,669,628.97

Less: Cash Outflows

Purchase of Fixed Asset 18,850.00
Purchase of Raw Materials 491,979.60 516,578.58 542,407.51
Packaging 27,000.00 27,000.00 27,000.00
Direct Labor 42,000.00 42,000.00 42,000.00
Salary & Wages 90,000.00 90,000.00 90,000.00
Office supplies 1,155.00 1,155.00 1,155.00
Rent 48,000.00 48,000.00 48,000.00
Transportation Expense 57,600.00 57,600.00 57,600.00
Promotional Expense 4,500.00 4,500.00 4,500.00
Income Tax 77,274.26 101,658.59 128,874.93
TOTAL Operating Expenses 858,358.86 888,492.17 941,537.44

Cash Balance, End ₱ 229, 641.14 ₱ 449,948.97 ₱ 728,091.53

 Healthy Bread Delight
Projected Balance Sheet
For the year ended Dec. 31, 2022 - Dec. 25, 2024
 2022 2023 2024

Assets

Current Assets

Cash ₱ 229,641.14 ₱ 449,948.97 ₱ 728,091.53

Total Current Assets 229,641.14 449,948.97 728,091.53

Non-Current Assets

Office Furniture & 3,850.00 3,850.00 3,850.00

Fixtures
Office Equipment 15,000.00 15,000.00 15,000.00

Total 18,850.00 18,850.00 18,850.00

Less: Accumulated 4,283.33 8,566.67

Depreciation
Total Non-Current 14,566.67
Assets

Total Assets 244,207.81

Liabilities & Equity

Current Liabilities

Partners Equity

Partners Contribution

Add: Net Income

Total Liability &

Equity