Mini Business Financial Plan

Gualberto, Christine Joi M.
12 Grahambell
MINI BUSINESS FINANCIAL PLAN
Name and nature of business
Bike Haven is a retail bike shop in Libjo Central, Batangas City. Kim Namjoon, a long-time bicycle
enthusiast, is the sole owner of the company. Namjoon has a business degree from Batangas State
University and many years of experience in the retail bicycle industry. The owner has also formed several
key partnerships with suppliers and industry experts to ensure the company's long-term success. From
beach cruisers to mountain bikes, the shop sells them all. Additionally, the shop provides services,
accessories, and parts that are installed by certified mechanics.
Projected financial data
ASSUMPTIONS
1. The business has estimated that its sales for 2024 will be 2,027,000.
2. The business expects to pay 60,000 in cash dividends in 2024.
3. The firm wants to maintain a minimum cash balance of $60,000.
4. Marketable securities will change directly in response to changes in sales in 2024.
5. Accounts receivable represent approximately 15% of annual sales.
6. The ending inventory of the business will change directly with changes in sales in 2024.
7. A new machine costing 33,500 will be purchased in 2024. Total depreciation for 2024 will
be 16,400.
8. Accounts payable will change directly in response to changes in sales in 2024.
9. Taxes payable will equal one-third of the tax liability on the proforma income statement.
10. Other current liabilities, long-term debt, and common stock will remain unchanged.
Bike Haven
Income Statement
For the Year Ended December 31, 2023
2023
Sales revenue ₱ 1,026,500
Less: Cost of goods sold 487,600
Gross profits 538,900
Less: Operating Expenses ₱ 255,600
Net profits before taxes 283,300
Less: Taxes (rate = 50%) 141,650
Net profits after taxes ₱ 141,650
Less: Cash dividends 52,380
To retained earnings ₱ 177,610
Bike Haven
Balance Sheet
December 31, 2023
Assets 2023
Cash ₱ 64,000
Marketable securities 93,000
Accounts receivable 290,000
Inventories 103,000
Total current assets ₱ 550,000
Net fixed asets 300,000
Total assets ₱ 850,000
Liabilities and Stockholders’ Equity 2023

Accounts payable ₱ 90,000
Taxes payable 169,000
Other current liabilities 4,000
Total current liabilities ₱ 263,000
Long-term debt 250,000
Total liabilities ₱ 513,000
Common stock 220,000
Retained earnings 117,000
External funds required
Total liabilities and
stockholders’ equity ₱ 850,000
Bike Haven
Income Statement
For the Year Ended December 31, 2023
2023 % 2024
Sales revenue ₱ 1,026,500 100.00% ₱ 2,027,000
Less: Cost of goods sold 487,600 47.50% 962,825
Gross profits 538,900 52.50% 1,064,175
Less: Operating Expenses ₱ 255,600 24.90% ₱ 504,723
Net profits before taxes 283,300 27.60% 559,452
Less: Taxes (rate = 50%) 141,650 13.80% 279,726
Net profits after taxes ₱ 141,650 13.80% ₱ 279,726
Less: Cash dividends 52,380 5.10% 103,377
To retained earnings ₱ 177,610 8.70% ₱ 176,349
Bike Haven
Balance Sheet
December 31, 2023
Assets 2023 2024

Cash ₱ 64,000 ₱ 60,000
Marketable securities 93,000 182,430
Accounts receivable 290,000 304,050
Inventories 103,000 202,700
Total current assets ₱ 550,000 ₱ 749,180
Net fixed asets 300,000 317,100
Total assets ₱ 850,000 ₱ 1,066,280
Liabilities and Stockholders’ Equity 2023 2024

Accounts payable ₱ 90,000 ₱ 182,430
Taxes payable 169,000 93,242
Other current liabilities 4,000 4,000
Total current liabilities ₱ 263,000 ₱ 279,672
Long-term debt 250,000 250,000
Total liabilities ₱ 513,000 ₱ 529,672
Common stock 220,000 220,000
Retained earnings 117,000 293,349
External funds required 23,259
Total liabilities and
stockholders’ equity ₱ 850,000 ₱ 1,066,280
Analysis of the projected financial data
In year 2024, Bike Haven has more sales revenue than year 2023. The cost of goods sold of the
business has increased 47.50% in 2024. It was also reported that Bike Haven’s gross profits increased
52.50% in 2024, from Php 538,900 to Php 1,064,175. Furthermore, the marketable securities, accounts
receivable, inventories, net fixed assets in 2024 are greater than 2023, which means there are more
assets in 2024 than 2023. Additionally, the taxes payable decreased in 2024. Therefore, this indicates
that the business has been operating well.

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Gualberto, Christine Joi M.

MINI BUSINESS FINANCIAL PLAN

Name and nature of business

Projected financial data

Liabilities and Stockholders’ Equity 2023

Assets 2023 2024

Liabilities and Stockholders’ Equity 2023 2024

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