ASSUMPTIONS UNDERLYING PROJECTIONS

1 Sales will increase by 10% per annum.

2 Purchases will increase by 10% per annum.
3 Permits and Licenses will increase depending on the total net sales on year 2.
4 Office Supplies will increase by 5% per annum
5 Supplies will increase by 10% per annum.
6 Kitchen Utensils will increase by 5% every 2 years.
7 Salaries will increase by 5% per annum.
8 The employer's share in the SSS & Philhealth will increase by 5% per annum.
9 Utilities will increase by 5% per annum.
10 Repair and Maintenance is estimated at 5% of the total fixed capital and will increase by 10%
per annum. There is no repair and maintenance expense on year 1.
11 Promotions and avertising expense will increase by 10% every 2 years.
12 Miscellaneous expenses are estimated at 6,000 per annum.
13 Depreciation is computed on a straight line basis.
14 Salvage Value is estimated at 10% of the acquisition cost.
15 Withdrawal of 10,000 will be made every year.
 TOTAL PROJECT COST

Fixed Assets/ Capital Investments

Food Cart 10,000.00
Machines & Equipment 3,475.00
Furniture and Fixtures 4,080.00
Pre & Operating Expenses
Permits and licenses 3,400.00
Advance rental (2 mos) 1,200.00
Rental Deposit ( 2mos) 1,200.00
Advertising 1,000.00
Kitchen Utensils 1,601.00
Supplies 2,860.00
Office supplies 40.00
Purchases 18,283.00
Total 47,139.00
47,139.00
Add: 10% contingency
4,713.90
TOTAL PROJECT COST
51,852.90
 Projected Cash Flow Statement
Five-Year Period

Year 1 Year 2 Year 3 Year 4 Year 5

Pre-Operating

CASH INFLOWS:

Capital, beginning 51,852.90 - - - - -

Net Sales - 1,368,375.00 1,505,212.50 1,655,733.75 1,821,307.13 2,003,437.84

Total 51,852.90 1,368,375.00 1,505,212.50 1,655,733.75 1,821,307.13 2,003,437.84

CASH OUTFLOWS:
Food Cart 10,000.00 - - - - -
Machines & Equipment 3,475.00 - - - - -
Furniture and Fixtures 4,080.00 - - - - -
Kitchen Utensils 1,601.00 - - 1,681.05 - 1,765.10
Permits and licenses 3,400.00 - 15,600.00 15,600.00 15,600.00 15,600.00
Rental 2,400.00 6,000.00 7,200.00 7,200.00 7,200.00 7,200.00
Supplies 2,860.00 32,318.00 38,695.80 42,565.38 46,821.92 51,504.11
Office supplies 40.00 440.00 504.00 529.20 555.66 583.44
Purchases 18,283.00 920,551.40 1,032,717.84 1,135,989.62 1,249,588.59 1,374,547.45
Utilities - 8,640.00 9,072.00 9,525.60 10,001.88 10,501.97
Promotions & Advertising 1,000.00 - 1,000.00 1,050.00 1,050.00 1,102.50
Salaries - 218,400.00 229,320.00 240,786.00 252,825.30 265,466.57
SSS & Philhealth - 22,590.00 23,719.50 24,905.48 26,150.75 27,458.29
Repair and maintenance - - 877.75 965.53 1,062.08 1,168.29
Income Tax - - - -
Miscellaneous - 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
Withdrawals - 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Total 47,139.00 1,224,939.40 1,374,706.89 1,496,797.85 1,626,856.17 1,772,897.71

NET CASH FLOW 4,713.90 143,435.60 130,505.61 158,935.90 194,450.95 230,540.13

Add: Cash balance, beginning - 4,713.90 148,149.50 278,655.11 437,591.01 632,041.96
CASH BALANCE, END 4,713.90 148,149.50 278,655.11 437,591.01 632,041.96 862,582.09
 MEOKJA Korean Street Foods
Projected Income Statement
Five-Year Period

Year 1 Year 2 Year 3 Year 4 Year 5

Revenues
Sales 1,368,375.00 1,505,212.50 1,655,733.75 1,821,307.13 2,003,437.84
Less: Cost of Sales
Beg. Inventory - - - - -
Add:Purchases 938,834.40 1,032,717.84 1,135,989.62 1,249,588.59 1,374,547.45
Total 938,834.40 1,032,717.84 1,135,989.62 1,249,588.59 1,374,547.45
Less Ending Inventory - - - - -
Cost of Sales 938,834.40 1,032,717.84 1,135,989.62 1,249,588.59 1,374,547.45
Gross Profit 429,540.60 472,494.66 519,744.13 571,718.54 628,890.39
Operating Expenses
Permits and licenses 3,400.00 15,600.00 15,600.00 15,600.00 15,600.00
Rental 7,200.00 7,200.00 7,200.00 7,200.00 7,200.00
Supplies 35,178.00 38,695.80 42,565.38 46,821.92 51,504.11
Office supplies 480.00 504.00 529.20 555.66 583.44
Kitchen Utensils 1,601.00 1,681.05 - 1,765.10
Salaries 218,400.00 229,320.00 240,786.00 252,825.30 265,466.57
SSS & Philhealth 22,590.00 23,719.50 24,905.48 26,150.75 27,458.29
Promotions & Advertising 1,000.00 1,000.00 1,050.00 1,050.00 1,102.50
Repair and maintenance 877.75 965.53 1,062.08 1,168.29
Utilities 8,640.00 9,072.00 9,525.60 10,001.88 10,501.97
Depreciation 2,484.90 2,484.90 2,484.90 2,484.90 2,484.90
Miscellaneous 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
Total 306,973.90 334,473.95 353,293.13 369,752.48 390,835.17
Net Income before Tax 122,566.70 138,020.71 166,451.00 201,966.05 238,055.23
Less: Income Tax - - - - -
NET INCOME 122,566.70 138,020.71 166,451.00 201,966.05 238,055.23
 MEOKJA Korean Street Foods
Projected Balance Statement
Five-Year Period

Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS

Current
Cash 4,713.90 148,149.50 278,655.11 437,591.01 632,041.96 862,582.09
Prepaid Expenses 11,301.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Merchandise Inventory 18,283.00 - - - - -
Total 34,297.90 149,349.50 279,855.11 438,791.01 633,241.96 863,782.09

Non-Current Assets
Food Cart 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
less: Accumulated Deprn - 1,125.00 2,250.00 3,375.00 4,500.00 5,625.00
10,000.00 8,875.00 7,750.00 6,625.00 5,500.00 4,375.00
Machines and Equipment 3,475.00 3,475.00 3,475.00 3,475.00 3,475.00 3,475.00
less: Accumulated Deprn - 625.50 1,251.00 1,876.50 2,502.00 3,127.50
3,475.00 2,849.50 2,224.00 1,598.50 973.00 347.50

Furniture and Fixtures 4,080.00 4,080.00 4,080.00 4,080.00 4,080.00 4,080.00

less: Accumulated Deprn - 734.40 1,468.80 2,203.20 2,937.60 3,672.00
4,080.00 3,345.60 2,611.20 1,876.80 1,142.40 408.00

Total 17,555.00 15,070.10 12,585.20 10,100.30 7,615.40 5,130.50

TOTAL ASSETS 51,852.90 164,419.60 292,440.31 448,891.31 640,857.36 868,912.59

LIABILITIES AND CAPITAL

LIABILITIES
Income Tax Payable - - - - - -

CAPITAL
Capital, beginning 51,852.90 51,852.90 164,419.60 292,440.31 448,891.31 640,857.36
Add: Net Income 122,566.70 138,020.71 166,451.00 201,966.05 238,055.23
Total 51,852.90 174,419.60 302,440.31 458,891.31 650,857.36 878,912.59
Less: Withdrawal - 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
TOTAL CAPITAL 164,419.60 292,440.31 448,891.31 640,857.36 868,912.59
TOTAL LIABILITIES AND CAPITAL 51,852.90 164,419.60 292,440.31 448,891.31 640,857.36 868,912.59

- - - - - -
 Financial Analysis

A. Return on investment

ROI = Net Income x 100

Investment

122,566.70 x 100
Year 1 = 51,852.90

= 236%

Year 2 138,020.71 x 100

51,852.90

= 266%

Year 3 = 166,451.00 x 100

51,852.90

= 321%

Year 4 = 201,966.05 x 100

51,852.90

= 389%

Year 5 = 238,055.23 x 100

51,852.90

= 459%
 Year 1 Year 2
RETURN ON INVESTMENT 236% 266%

PAYBACK PERIOD
Annual Cash Inflows
Net Income 122,566.70 138,020.71
Add: Depreciation 2,484.90 2,484.90

Total 125,051.60 140,505.61

Year Annual Cash Inflows

1 125,051.60
2 140,505.61
3 168,935.90
4 204,450.95
5 240,540.13

Total
 Year 3 Year 4 Year 5
321% 389% 459%

166,451.00 201,966.05 238,055.23

2,484.90 2,484.90 2,484.90

168,935.90 204,450.95 240,540.13

Recovery of Equivalent in Years

Investments

51,852.90 0.41

51,852.90 0.41 year

102 Days
SCHEDULE 7 ACCUMULATED DEPRECIATION

Item Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

Food Cart 1,125.00 2,250.00 3,375.00 4,500.00 5,625.00

Machine & Equipment 625.50 1,251.00 1,876.50 2,502.00 3,127.50
Furniture 734.40 1,468.80 2,203.20 2,937.60 3,672.00

SCHEDULE 8 INCOME TAX

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

122,566.70 138,020.71 166,451.00 201,966.05 238,055.23

Fixed Tax - - - - -
Tax on Excess - - - - -

Total - - - - -

SCHEDULE 9 CASH
Year 1 Year 2 Year 3 Year 4 Year 5
Cash on Hand 10,000 10000 10000 10000 10000
Cash in Bank 138,149.50 268,655.11 427,591.01 622,041.96 852,582.09

CASH 148,149.50 278,655.11 437,591.01 632,041.96 862,582.09

SCHEDULE 10 UTILITIES
Monthly Annually
Water 230 2760
LPG GAS 490 5880
8640

SCHEDULE 11 MACHINE AND EQUIPMENT

Gas stove 1075

Potato Slicer 1100
LPG Tank 1300
3475

SCHEDULE 12 Furniture and Fixture

Display glass Cabinet 2900

Cooler 1180
4080

SCHEDULE 12 Kitchen Utensils

Description Qty. Unit Unit Cost Total Cost
Frying pans 2 Pcs. 146 292
Chopping Board 2 Pcs. 135 270
Kitchen Knife 2 Pcs 25 50
Spoons 1 dozen 35 35
Rolling mat 2 Pcs 50 100
Spatula 2 Pcs 95 190
Casserole Pot 1 Pc 150 150
Stainless Mixer 1 Pc 50 50
Measuring Cups 1 Set 75 75
Food Containers 1 Set 239 239
Mixing Bowl 3 Pcs 50 150
1601
 SSS CONTRIBUTION
(For Employed Members)

Monthly Salary
Salary Range of Compensation Credit Monthly Contribution TOTAL
Bracket Employer Employee Employer
SS EC SS
I below 2,250.00 2,000.00 160.00 10.00 80.00 170.00
II 2,250.00 2,749.00 2,500.00 200.00 10.00 100.00 210.00
III 2,750.00 3,249.00 3,000.00 240.00 10.00 120.00 250.00
IV 3,250.00 3,749.00 3,500.00 280.00 10.00 140.00 290.00
V 3,750.00 4249 4,000.00 320 10 160 330
VI 4,250.00 4,749.00 4,500.00 360.00 10.00 180.00 370.00
VII 4,750.00 5,249.00 5,000.00 400.00 10.00 200.00 410.00
VIII 5,250.00 5,749.00 5,500.00 440.00 10.00 220.00 450.00
IX 5,750.00 6,249.00 6,000.00 480.00 10.00 240.00 490.00
X 6,250.00 6,749.00 6,500.00 520.00 10.00 260.00 530.00
XI 6,750.00 7,249.00 7,000.00 560.00 10.00 280.00 570.00
XII 7,250.00 7,749.00 7,500.00 600.00 10.00 300.00 610.00
XIII 7,750.00 8,249.00 8,000.00 640.00 10.00 320.00 650.00
XIV 8,250.00 8,749.00 8,500.00 680.00 10.00 340.00 690.00
XV 8,750.00 9,249.00 9,000.00 720.00 10.00 360.00 730.00
XVI 9,250.00 9,749.00 9,500.00 760.00 10.00 380.00 770.00
XVII 9,750.00 10,249.00 10,000.00 800.00 10.00 400.00 810.00
XVIII 10,250.00 10,749.00 10,500.00 840.00 10.00 420.00 850.00
XIX 10,750.00 11,249.00 11,000.00 880.00 10.00 440.00 890.00
XX 11,250.00 OVER 11,500.00 920.00 10.00 460.00 930.00
TOTAL
Employee

80.00
100.00
120.00
140.00
160
180.00
200.00
220.00
240.00
260.00
280.00
300.00
320.00
340.00
360.00 sss
380.00
400.00
420.00
440.00
460.00
 PhilHealth Contributions

Monthly Basic Salary x 2.75% Monthly Premium Personal Share Employer Share
10,000 and below 275 137.5 137.5
10,000.01 - 39,999.99 275 - 1,099.99 137.50 - 549.99 137.50 - 549.99
40,000 and above 1,100 550 550

Note: Earnings 10,000 and below per month needs to pay the minimum monthly contribution
equivalent to P275. Employee and employer share in 50-50 basis.
 TAX RATES

TRAIN TAX table (for Year 2018-2022)

For Individual Earnings Purely Compensation Income and Individuals Engaged in Business

TAXABLE INCOME PER YEAR INCOME TAX RATE

P250,000 and below None
Above P250,000 to P400,000 20% of the excess over P250,000
Above P400,000 to P800,000 P30,000+25% of the excess over P400,000
Above P800,000 to P2,000,000 P130,000+30% of the excess over P800,000
Above P2,000,000 to P8,000,000 P490,000+32% of the excess over P2,000,000
Above P8,000,000 P2,410,000+35% of the excess over P8,000,000