Feasibility StudyFinancial Estimates and AnalysisChapter 6

Archt Jesus Aguas ProfessorArrence G. Dela PeaBS Architecture 4Financial Estimates and Analysis OutlineChapter 6

1. Financial Estimates a. Projected Income Statementb. Projected Cash Flowc. Proforma Balance Sheetd. Assumptions, Schedules, and Computations supporting the above ( items a, b, c )

2. Financial Analysis a. Return on Investment (ROI)b. Sales volume and sales price sensitivity tests.

KUYA EXAMPLE YA YNProjected CustomersFor the year 2013, Arayat total population was 118, 312 classified as the upper (citizens who have the highest income and bank savings), the middle (stable living) and the lower class (minimum income/ living near agricultural land). Table Presenting Customers per MonthProspects 118,312 Population x % Totality Assumed ProspectTotal Prospect

Upper class10%11,83110%1,183

Middle class60%70,98750%35,494

Lower class30%35,49410%3,549

Total100%118,312_______40,226

Aside from the total number of customers above, another target market was projected. These are the passers-by.A projected 4,000 passers-by per month will be computed for additional customers.Therefore: 40,226 + 4,000 = 44,226 total average of prospect (target market) per month.Considering the number above is constant, and then we have: 44,226 x 12 (months) = 530,712 customers in a year.Projected Sales Table Presenting Sales per MonthProspects No.of ProspectsMultiply Approximate Price MenuSales

Upper Class1,183X170 php201,110 php

Middle Class35,494X100 php3,549,400 php

Lower Class3,549X 50 php177,450 php

Passers-by4,000X100 php400,000 php

total44,226_____________4,327,960 php

Considering the calculated sales/month is 4,327,960 Php we multiply it by 12 (months) to get the total sales in the year ended.4,327,960 Php x 12 (months) = 51,935,520 Php SALES in a year

SALARIES AND WAGES COMPUTATION:Employees: Part-timeNo. of hours duty per day: minimum of 4 hoursRate per hour: Php42.00Php42.00 per hour x 4 hours = Php168.00 x 26 days (excluding 4 days off)= Php4,368.00Php4,368.00 (167 + 50 + 367 + 139) = 3,645.00 x 40 employees= Php145,800.00 monthly salaries of Part time employeesPhp22,000.00 x 5 managers = Php110,000.00 + Php27,000.00= Php137,000.00Php145,800.00 monthly salaries of Part time employeesPhp137,000.00 monthly salary of the 5 managers and the store managerPhp282,800.00 x 12 months = 3,393,600.00

FRESH OPTIONINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2014

SALES 11,896,869.6LESS: OPERATING EXPENSES SALARIES WAGES 861,042.00 ELECTRIL BILL 480,000.00 WATER BILL 120,000.00 TELEPHONE BILL 7,200.00 DELIVERY EXPENSES 240,000.00 REPAIR & MAINTENANCE 30,000.00 DONATIONS 12,000.00 INSURANCE 30,000.00LEGAL EXPENSES:BUSINESS PERMIT 2,000.00BUILDING PERMIT 2,205.19FIRE SAFETY EVALUATION CLEARANCE 1,057.50 TOTAL: 1,677,486.69 1,677,486.69 GROSS INCOME: 10,219,382.91 TAX PROVISION OF 25 % X .35 NET INCOME: 3,576,784.019

FRESH OPTIONBALANCE SHEETFOR THE YEAR ENDED DECEMBER 31, 2014ASSETCURRENT ASSET CASH ON HAND/IN BANK INVENTORY END TOTAL CURRENT ASSET:

FIXED & OTHER ASSET: BUILDING 1,057,500.00 STORE EQUIPMENT 609,200.00 SEVICE VEHICLE 240,000.00 TOTAL: 1,906,700.00 LESS: ACC. DEPRECIATION 150,000.00 TOTAL BOOK VALUE: 1,756,700.00 LAND 311 SQM. 4,665,000.00 TOTAL FIXED & OTHER ASSET 6,421,700.00 TOTAL ASSET:

LIABILITIES & CAPITALLIABILITIES ACCOUNT PAYABLE NONECAPITAL: FRESH OPTION, CAPITAL ADD. NET INCOME TOTAL LESS: WITHDRAWAL

STORE HOURS:6:00 7:00 am -OPENING7:00 8:00 pm -OPERATING HOURS7:00 7:30 CLOSING

6am-1pm - 1 SHIFT 4 EMPLOYEES1pm-7:30pm - 2 SHIFT 4 EMPLOYEES

PRODUCT PRICE:CHICKEN 140/KLBEEF 200/KLPORK 190/KLOTHER PRODUCTS 100/KL

KUYA PAG ATIN NG INCOME STATEMENT TSKA BALANCE SHEET AKWA MUNE DW ING CASH FLOW??PKI CHECK NAMU KUNG ISTU GEWA KU ATSU LA KEN DNG COMPUTATION..DNG ALIWA PLA KEN ALA LAPA ALI KULA BALU E DYAAN U NYA..SALAMAT..PATI ROI PLA ALA KUPA ALI KE BALU E..KUYA PATI PLA INCOME STATEMENT N BALANCE SHEET NING OWNER KU DAYAAN U NAYA ALI KU MNIKWANG INFO E CONFIDENCIAL DW KC.

DR.ROBERT H. LOINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2014

DR.ROBERT H. LOBALANCE SHEETFOR THE YEAR ENDED DECEMBER 31, 2014