FRUIT BREAD BAKESHOP

Notes to Financial Statement

For the years ended in Five Years

Year 1 Year 2 Year 3 Year 4 Year 5

Sales (1) 2,398,746.00 3,238,307.10 4,371,714.59 5,901,814.69 7,967,449.83
Less: Cost of Goods Sold (2) 647,892.00 716,083.20 726,372.36 730,940.72 735,007.78
Gross Profit 1,750,854.00 2,522,223.90 3,645,342.23 5,170,873.97 7,232,442.05
Less: Pre-operating expenses
Less: Operating Expenses
Depreciation expense (3) 352,400.00 352,400.00 352,400.00 352,400.00 352,400.00
Utilities Expense (5) 81,000.00 82,620.00 84,272.40 85,957.85 87,677.00
Internet Expense (6) 18000 19800 21780 23958 26354
Promotional Expense (7) 50,000 20,000 15,000 10,000 5,000
Retainer's Fee - Bookeeper (9) 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Salaries and Wages (8) 788,499 976,017 963,535 1,051,053 1,138,571
SSS Premium Expense (10) 46,854 51,539.40 56,693.34 62,362.67 68,598.94
Philhealth Premium Expense (11) 7,950 8,745 9,619.50 10,581.45 11,639.60
Supplies Expense (12) 17,105.00 17,105.00 17,105.00 17,105.00 17,105.00
Repairs and Maintenance (14) 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Fuel & Lubricants (15) 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Permits & Licenses (13) 5000 5500 6050 6655 7321
Total Operating Expenses 1,417,808.00 1,584,726.40 1,577,455.24 1,671,072.97 1,765,666.54
Net income 333,046.00 937,497.50 2,067,886.99 3,499,801.01 5,466,775.50
 FRUIT BREAD BAKESHOP
CASH FLOW
For the years ended in Five Years

Year 1 Year 2 Year 3 Year 4 Year 5

Cash flow from Operating activities
Net income 333,046.00 937,497.50 2,067,886.99 3,499,801.01 5,466,775.50
Add/Deduct:
Increase in Ending finished goods inventory (16) (107,982.00) (11,365.20) (1,714.86) (761.39) (677.84)
Depreciation - Machinery and Equipment (3) 34,440.00 34,440.00 34,440.00 34,440.00 34,440.00
Depreciation - Office Equipment (3) 7,690.00 7,690.00 7,690.00 7,690.00 7,690.00
Depreciation - Furniture and Fixtures (3) 1,480.00 1,480.00 1,480.00 1,480.00 1,480.00
SSS Premium payable (10) 22,968.00 - -
PhilHealth Premium Payable (11) 7,200.00
Net Cash Provided by Operating Activities 298,842.00 969,742.30 2,109,782.13 3,542,649.61 5,509,707.66

Cash Flow from Investing

Purchase of Machinery and Equipment (3) (344,400.00)
Purchase of Office Equipment (3) (76,900.00)
Purchase of Furniture and Fixtures (3) (14,800.00)
Net Cash Provided by Investing Activities (436,100.00)

Cash flow from Financing Activies

Cash Received from owner 375,000.00
Less: Withdrawal by owner - - - - -
Net Cash Provided by Financing Activities 375,000.00 - - - -

Net Increase/Decrease of Cash 237,742.00 969,742.30 2,109,782.13 3,542,649.61 5,509,707.66

Add: Cash Balance Beg. - 237,742.00 1,207,484.30 3,317,266.43 6,859,916.04
Cash Balance end 237,742.00 1,207,484.30 3,317,266.43 6,859,916.04 12,369,623.70
 FRUIT BREAD BAKESHOP
BALANCE SHEET
For the years ended in Five Years

Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets:
Cash 1,106,721 1,363,283.00 1,591,815.00 1,647,431 1,805,336
Inventory(Finished Goods) (16) 107,982.00 119,347.20 121,062.06 121,823.45 122,501.30
Total Current Assets 1,214,703.00 1,482,630.20 1,712,877.06 1,769,254.45 1,927,837.30
Non-Current Assets
Machinery and Equipment (4) 309,960.00 275,520.00 241,080.00 206,640.00 172,200.00
Office Equipment (4) 69,210.00 61,520.00 53,830.00 46,140.00 38,450.00
Furniture and Fixtures (4) 13,320.00 11,840.00 10,360.00 8,880.00 7,400.00
Total Non-Current Assets 392,490.00 348,880.00 305,270.00 261,660.00 218,050.00
TOTAL ASSETS 1,607,193.00 1,831,510.20 2,018,147.06 2,030,914.45 2,145,887.30

LIABILITIES & OWNER'S EQUITY

LIABILITIES
SSS Premium Payable (10) 46,854 51,539.40 56,693.34 62,362.67 68,598.94
13th Monthpay (11) 63600 69960 76,956 84,651.60 93116.76
Philhealth Premium Payable (12) 7,950 8,745 9,619.50 10,581.45 11,639.60
Total Liabilities 118,404.00 130,244.40 143,268.84 157,595.72 173,355.30
OWNER'S EQUITY
Owner's Capital
1,106,721 1,363,283.00 1,591,815.00 1,647,431 1,805,336
TOTAL LIABILITIES & OWNER'S EQUITY 118,404.00 130,244.40 143,268.84 157,595.72 173,355.30
 FRUIT BREAD BAKERY
OWNER'S EQUITY
For the years ended in Five Years

Capital Beginning Year 1 Year 2 Year 3 Year 4 Year 5

1,106,721 1,363,283.00 1,591,815.00 1,647,431 1,805,336
Add: Net Income 333,046.00 937,497.50 2,067,886.99 3,499,801.01 5,466,775.50
Less: Withdrawal - - - - -
Capital End 1,439,767.00 2,300,780.50 3,659,701.99 5,147,232.01 7,272,111.50
 FRUIT BREAD BAKESHOP
Notes to Financial Statement
For the years ended in Five Years

Note 1: Sales

Products Unit Price Unit Sales Monthly Sales Annual Sales

Banana Bread Bite size 8.00 3,295.00 26,360.00 165,600
Loaf 99.00 963.00 95,337.00 201,230.00
Guava Bread Bite size 6.00 2,693.00 16,158.00 193,896.00
Loaf 60.00 676.00 40,560.00 486,720.00
Pineapple Bite size 8.00 4,207.00 33,656.00 301,108
Loaf 99.00 884.00 87,516.00 1,050,192.00
Total 299,587.00 2,398,746.00

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Sales 2,398,746.00 3,238,307.10 4,371,714.59 5,901,814.69 7,967,449.83
Increase by % 1.35 1.35 1.35 1.35 1.35
Total Sales 3,238,307.10 4,371,714.59 5,901,814.69 7,967,449.83 10,756,057.27

Note 2: Cost of Goods Sold

Item Quantity Unit Acquisition Cost Weekly Cost Monthly Cost Annual Cost
Pineapple 70.00 kilo 58.00 4,060.00 16,240.00 194,880.00
Banana 150.00 kilo 25.00 3,750.00 15,000.00 180,000.00
Guava 25.00 kilo 22.00 550.00 2,200.00 26,400.00
Splenda 3.00 kilo 450.00 1,350.00 5,400.00 64,800.00
Total 9,710.00 38,840.00 466,080.00

Year 1 Year 2 Year 3 Year 4 Year 5

Beginning Finished Goods Inventory - 71,988.00 79,564.80 80,708.04 81,215.64
ADD: Cost of Goods Manufactured
*Direct materials 466,080.00 466,080.00 466,080.00 466,080.00 466,080.00
*Direct labor 64,800.00 64,800.00 64,800.00 64,800.00 64,800.00
*Production overhead 189,000.00 192,780.00 196,635.60 200,568.31 204,579.68
 Goods available for sale 719,880.00 795,648.00 807,080.40 812,156.35 816,675.31
LESS: Ending finished goods inventory 71,988.00 79,564.80 80,708.04 81,215.64 81,667.53
Cost of Goods Sold 647,892.00 716,083.20 726,372.36 730,940.72 735,007.78

Note 3: Depreciation Expense

Depreciable Assets Cost of Asset Useful Life Depreciation Expense

Machinery and Equipment 344,400.00 10.00 34,440.00
Office Equipment 76,900.00 10.00 7,690.00
Furniture and Fixtures 14,800.00 10.00 1,480.00
Total 43,610.00

Note 4: Non - Current Asset

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Cost of Machinery and Equipment 344,400.00 344,400.00 344,400.00 344,400.00 344,400.00
Accumulated Depreciation 34,440.00 68,880.00 103,320.00 137,760.00 172,200.00
Book Value 309,960.00 275,520.00 241,080.00 206,640.00 172,200.00

Cost of Office Equipment 76,900.00 76,900.00 76,900.00 76,900.00 76,900.00

Accumulated Depreciation 7,690.00 15,380.00 23,070.00 30,760.00 38,450.00
Book Value 69,210.00 61,520.00 53,830.00 46,140.00 38,450.00

Cost of Furniture and Fixtures 14,800.00 14,800.00 14,800.00 14,800.00 14,800.00

Accumulated Depreciation 1,480.00 2,960.00 4,440.00 5,920.00 7,400.00
Book Value 13,320.00 11,840.00 10,360.00 8,880.00 7,400.00

Note 5: Utilities Expense

Monthly Annually
Water 5,000.00 60,000.00
Electricity 16,000.00 192,000.00
Internet connection 1,500.00 18,000.00
Total 270,000.00

2018 2019 2020 2021 2022

Utilities Expense 270,000.00 270,000.00 275,400.00 280,908.00 286,526.16
Increase by % 1.00 1.02 1.02 1.02 1.02
Total Cost 270,000.00 275,400.00 280,908.00 286,526.16 292,256.68

Charged to Factory Overhead 189,000.00 192,780.00 196,635.60 200,568.31 204,579.68

Charged to Operating Expenses 81,000.00 82,620.00 84,272.40 85,957.85 87,677.00
Total Cost 270,000.00 275,400.00 280,908.00 286,526.16 292,256.68

Note 6: Rental Expense

Monthly Annually
10,000.00 120,000.00

Note 7: Promotional Expense

Number of Units Price Total
Social Media 2.00 900.00 1,800.00
Fliers 250.00 5.00 1,250.00
Tarpulins 2.00 600.00 1,200.00
Total 4,250.00

Note 8: Salaries and Wages

Position Daily Rate Monthly Salary Annual Salary

General Manager 325 7,800.00 93,600.00
Assistant Manager 250.00 6,000.00 72,000.00
Marketing Manager 250.00 6,000.00 72,000.00
Financial Manager 250.00 6,000.00 72,000.00
Production Manager 250.00 6,000.00 72,000.00

Head Baker 250.00 6,000.00 72,000.00

144,000.00

Direct Labor
Baker 225.00 5,400.00 64,800.00
Cashier 225.00 5,400.00 64,800.00
129,600.00

Note 9: Retainer's Fee

 Monthly Annually
Delivery Boy 2,500.00 30,000.00
Employee Employer Total
217.80 442.20 660.00
Note 10: SSS Premium Contribution 196.02 397.98 594.00
217.80 442.20 660.00
Position Monthly Annual 631.62 1,282.38 1,914.00
Production Manager 6,000.00 72,000.00
Baker 5,400.00 64,800.00 7,579.44 15,388.56 22,968.00
Head Baker 6,000.00 72,000.00
Total 17,400.00 208,800.00

Annual SSS Premium Contribution

Employee Employer Total
100.00 100.00 200.00
Note 11: PhilHealth Premium Contribution 100.00 100.00 200.00
100.00 100.00 200.00
Position Monthly Annual 300.00 300.00 600.00
Production Manager 6,000.00 72,000.00
Baker 5,400.00 64,800.00 3,600.00 3,600.00 7,200.00
Head Baker 6,000.00 72,000.00
Total 17,400.00 208,800.00

Annual PhilHealth Premium Contribution

Note 12: Supplies Expense

Total Cost
Office Supplies 14,760.00
Cleaning Supplies 2,345.00
Total 17,105.00

Note 13: Permit and Licenses

Cost
Barangay clearance 380.00
Business permit 2,500.00
Mayor's permit 650.00
Business plate 350.00
Sanitary permit 500.00
Filling 200.00
Processing 250.00
Registration fee 500.00
BIR 500.00
DTI 500.00
Total 6,330.00

Note 14: Repairs & Maintenance

Description Total cost

Petty Cash 10,000.00
Machineries and equipment 5,000.00
Total 15,000.00

Monthly Cost Annual cost

750.00 9,000.00
Note 15: Fuel & Lubricants

Description Quantity Cost

Fuel 15.00 50.00

2020 2021 2022

79,564.80 80,708.04 81,215.64
727,515.60 731,448.31 735,459.68
Note 16: Inventory 807,080.40 812,156.35 816,675.31
0.15 0.15 0.15
Beginning Finished Goods Inventory 2018 2019 121,062.06 121,823.45 122,501.30
ADD: Cost of Goods Manufactured - 71,988.00
Goods available for sale 719,880.00 723,660.00 1,714.86 761.39 677.84
719,880.00 795,648.00
Inventory, End 0.15 0.15
107,982.00 119,347.20
Increase/(Decrease)
107,982.00 11,365.20
Note 17: Machinery and Equipment

Oven with Thermometer Quantity Cost per unit Total Cost

Flour Sifter 1.00 35,000.00 35,000.00
Dough Mixer 1.00 100,000.00 100,000.00
Dough Divider/Rounder 1.00 30,000.00 30,000.00
Toast Molder 1.00 115,000.00 115,000.00
Dough Proofer 1.00 20,000.00 20,000.00
Oven tray/ Aluminum tray 1.00 20,000.00 20,000.00
Bread Slicer 20.00 120.00 2,400.00
Baking Trolley w/ Rack 1.00 20,000.00 20,000.00
Total 1.00 2,000.00 2,000.00
344,400.00

Note 18: Office Equipment

Cash
punch
machine
Laptop
/ teller Quantity Cost per unit Total Cost
machine 1.00 16,000.00 16,000.00
Air Conditioner 1.00 8,900.00 8,900.00
Total 2.00 26,000.00 52,000.00
76,900.00

Note 19: Furniture and Fixture

Long table Quantity Cost per unit Total Cost

Office set 1.00 6,800.00 6,800.00
Chair set 1.00 4,500.00 4,500.00
Total 1.00 3,500.00 3,500.00
14,800.00
Note 20: Office Supplies

Paper roll (receipt) Quantity Cost per unit Total Cost

Aprons 15.00 10.00 150.00
Uniform- Polo Shirt 8.00 100.00 800.00
Paints 10.00 180.00 1,800.00
Emergency Led Lights 6.00 760.00 4,560.00
Fire Extiguisher 4.00 800.00 3,200.00
Total 5.00 850.00 4,250.00
14,760.00

Note 21: Sanitary Supplies

Trash Can Quantity Cost per unit Total Cost

Dust pan 3.00 125.00 375.00
Broom 2.00 90.00 180.00
Table Napkin 2.00 60.00 120.00
Tissue 10.00 25.00 250.00
Dishwashing Gel 10.00 12.00 120.00
Albatross 10.00 85.00 850.00
Total 10.00 45.00 450.00
2,345.00
 FRUIT BREAD BAKESHOP
Notes to Financial Statement
For the years ended in Five Years

The capitalization of the business at P 1,500,000

With total business expenses of 1,106,721.00
The excess capital of 383,279 will be deducted with Petty Cash of 10,000
The excess capital will be deposited to the bank as standby/emergency fund
The Normal season based on studies is from January to September while the Peak season is on the Last Quarter of the Year
For Year 2 to Year 5, Sales increase by 10% during the normal season while 25% during the peak season
The Cost of Goods Sold increases proportionately with Sales
No Increases is yet implemented on the employees’ Salaries and Wages for the 5-year projection
The management uses Straight-line method of depreciating the Tangible Long-term assets
The capitalization of the business at P 1,500,001
With total business expenses of 1,106,721.01
The excess capital of 383,279 will be deducted with Petty Cash of 10,001
The excess capital will be deposited to the bank as standby/emergency fund
The Normal season based on studies is from January to September while the Peak season is on the Last Quarter of the Year
For Year 2 to Year 5, Sales increase by 10% during the normal season while 25% during the peak season
The Cost of Goods Sold increases proportionately with Sales
No Increases is yet implemented on the employees’ Salaries and Wages for the 5-year projection
The management uses Straight-line method of depreciating the Tangible Long-term assets
The capitalization of the business at P 1,500,001
With total business expenses of 1,106,721.01
The excess capital of 383,279 will be deducted with Petty Cash of 10,001
The excess capital will be deposited to the bank as standby/emergency fund
The Normal season based on studies is from January to September while the Peak season is on the Last Quarter of the Year
For Year 2 to Year 5, Sales increase by 10% during the normal season while 25% during the peak season
The Cost of Goods Sold increases proportionately with Sales
No Increases is yet implemented on the employees’ Salaries and Wages for the 5-year projection
The management uses Straight-line method of depreciating the Tangible Long-term assets
The capitalization of the business at P 1,500,002
With total business expenses of 1,106,721.02
The excess capital of 383,279 will be deducted with Petty Cash of 10,002
The excess capital will be deposited to the bank as standby/emergency fund
The Normal season based on studies is from January to September while the Peak season is on the Last Quarter of the Year
For Year 2 to Year 5, Sales increase by 10% during the normal season while 25% during the peak season
The Cost of Goods Sold increases proportionately with Sales
No Increases is yet implemented on the employees’ Salaries and Wages for the 5-year projection
The management uses Straight-line method of depreciating the Tangible Long-term assets