FINANCIAL COMPONENTS

A. INCOME STATEMENT
Presented are projected financial statements covering a three year and three month period.
Relevant assumptions are as follows:
Service Tax Rate is at 2%
Corporate Income Tax Rate is 30%
Suppliers services costs increased by 7% per annum
Accounts Receivable is 10% of income (inclusive of Service Tax )
B. INITIAL CAPITALIZATION:
a. Breakdown of Initial Capitalization Needed
I.
Machineries and Equipment:
Table 1.2: Machinery and Equipment
Item
Specifications
Total Price
Two way radio
5
P 24 500
Storage Box
2
598
TOTAL MACHINERY and EQUIPMENT
P 25 098
II.

Furniture and Fixtures

Table 1.3: Furniture and Fixtures
Emachine Laptop 14
1
P 23 799
Macbook
1
59 000
iPad
1
27 800
Dtab tablet
1
7 495
Epson L210 Printer
1
7 650
Metal Filing Cabinet
1
2 880
TOTAL FURNITURE and FIXTURES
P 128 624

III.

Supplies Expense
Table 1.4: Supplies expense and services
Rims of Bond Paper
3
P 525
Board Specialty Paper
2
60
Specialty Paper Glossy
5
300
Filed Organizers
4
3340
Pubmats Printing
50
2000
TOTAL SUPPLIES EXPENSE
P 6 225

IV.

Other Expenses

SEC Verification
Treasurers affidavit
SEC Registration
Community Tax
Mayors Permit
DTI name registration
Print Receipts and
Invoices
Corporate Jacket
Polo Shirt Uniform
Pin
TOTAL OTHER EXPENSES
V.

Table 1.5: Other Expenses

1
1
1
1
1
1
1
4
18
10

P 40
500
1520
500
1000
300
4000
4800
4320
1500
P 18 510

Working Capital
Table 1.6: Working Capital (First month after opening)
Working Fund
First 3 events
P90 000
Advertising Expense
Communication and
10 000
Transportation
TOTAL Working Capital
P100 000

C. SOURCE OF FUNDS
Table 1.6: Source of Funds
Initial Investment from the proprietors
TOTAL INITIAL CAPITAL

P 278 457
P 278 457

D. SALES PROJECTION
Academic Approach
Computed as follows:
Politician Respondents (7/10) = 70%
Student Leader Respondents (5/10) = 50%
Individuals 18-27- (6/10) = 60%
Company Managers (5/10) = 50%
Median: 57.5 % = Yes theyll buy (Target Market or segmentation)
Standard mode of payment used in the projection: Flat rate

Event Category (Standard):

1.
2.
3.
4.

6 months and over preparation: Weddings etc.

4-5 months preparation: Debuts, concerts etc.
3 months preparation: Seminars, Reunion, Conventions, Competitions, Fiestas etc.
2 months preparation: Baptismal, Birthday Parties, Holiday parties, Charities, Corporate
Launching, Bazaars
5. 1 month preparation: College Parties, School Fairs, Corporate meetings, etc.
Price Chart Flat Rate:
All in Package:
Event Category
1
2
3
4
5
6

Number of meetings
7
5
4
3
2
1

Flat rate
50 000
40 000
35 000
25 000
20 000
15 000

Number of meetings
6
4
3
2
1
1

Flat rate
35 000
30 000
20 000
15 000
10 000
10 000

Partial Package:
Event Category
1
2
3
4
5
6

Note: the initial meeting (plus 1) will not be charged against the client
Partnership assets will be used to finance the first meetings
Prices will be subjected to changes upon negotiation

-On the Day of any event: Standard rate of P 10 000 subject to negotiations
-Program Conceptualization: Standard rate of P5 000 for actual events subject to negotiations
depending on client demand
-Skype consultation starts at P 3 000 per hour
POLICIES:
-every meetings exceeding the standard meeting included in the package
-every rush coordination, additional payment will be charged against the client
-events outside the metro will be charged differently
-additional manpower will be charged against the client

FLAT RATE COMPUTATION:

Basis: All in Package 6 months and over preparation
Flat rate: P 50000
Budget per meeting: P 1 500
Allowance for ushers (3 ushers per package): P 500 each
Transportation expense for the whole duration: 10 000
Salary share of main coordinators: P 5000
Evaluation and Token to client: P 2 000
Price = (1500x7)+(500x3)+(10000)+(5000x3)+(2000)
Price = P 39 000
Partnership profit = P11 000
Allowance is made for negotiation purposes and for contingency
*Budget for meeting, ushers and manpower allowance, and evaluation and token to client are
constant
*Transportation expense and salary share of main coordinators is the adjustable variables
depending on package
SALES PROJECTION

FIRST YEAR
Month of May (Opening) usual events are fiestas, assumed all in packages (basis: survey and
interviews) DISCOUNT STARTS AT 10% depending on the event
Event category

Maximum event
frequency
(multiplier)
2

3 months
preparation
Less: (multiplier 2)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Discount 10%
Month of may (gross profit)

Willing buyers

Selling Price

Income
Projection

35 000

70 000
(60 000)

P 10 000

Month of June - July (Opening plus 1 discounted event) usual events are campus
events (basis: survey and interviews)
Event category

Maximum event
frequency

Willing buyers

Selling Price

Income
Projection

(multiplier)
2

1 month
preparation
Less: (multiplier 2)
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Discount of 10% from 15 000
Month of June - July (gross profit)

15 000

30 000
(21 500)

P 8 500

Month of August- November usual events are campus events (basis: survey and interviews)
Event category

Maximum event
frequency
(multiplier)
3

Willing buyers

1 month
6
preparation
Less: (multiplier 3)
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of August - November (gross profit)

Selling Price

Income
Projection

15 000

45 000
(20 000)

P 15 000

Month of December - February usual events are weddings, corporate parties, and
holidays (basis: survey and interviews)
Event category

Maximum event
frequency
(multiplier)
4

Willing buyers

4-5 months
6
preparation
Less: (multiplier 4)
Meetings (7500) 30 000
Ushers and manpower (1500) 6000
Transportation Expense (8000) 32 000
Salary share (12000) 48 000
Token and evaluation (2000) 8000
Month of December - February (gross profit)

Selling Price

Income
Projection

40 000

160 000
(124 000)

P 36 000

Month of March - May usual events are corporate meeting, graduation events. fiestas (basis:
survey and interviews)
Event category

Maximum event

Willing buyers

Selling Price

Income

frequency
(multiplier)
5

3 months
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 1 GROSS PROFIT

Projection
6

35 000

175 000
(132 500)

P 42 500
P 112 000

SECOND YEAR
Event category

Maximum event
frequency
(multiplier)
5

Willing buyers

Selling Price

Income
Projection

1 month
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of June - July (gross profit)

15 000

75 000

Event category

Willing buyers

P 15 000
Selling Price

Income
Projection

1 month
6
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of August - November (gross profit)

15 000

75 000

Event category

Willing buyers

Selling Price

Income
Projection

40 000

200 000

4-5 months

Maximum event
frequency
(multiplier)
5

(50 000)

Maximum event
frequency
(multiplier)
5

(50 000)

P 15 000

preparation
Less:
Meetings (7500) 37 500
Ushers and manpower (1500) 7500
Transportation Expense (8000) 40 000
Salary share (12000) 60 000
Token and evaluation (2000) 10 000
Month of December - February (gross profit)

Event category

Maximum event
frequency
(multiplier)
5

3 months
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 2 GROSS PROFIT

(155 000)

P 45 000

Willing buyers

Selling Price

Income
Projection

35 000

175 000
(132 500)

P 42 500
P 117 500

THIRD YEAR
Event category

Willing buyers

Selling Price

Income
Projection

1 month
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of June - July (gross profit)

15 000

75 000

Event category

Willing buyers

Selling Price

Income
Projection

15 000

75 000

1 month
preparation
Less:
Meetings (1500)

Maximum event
frequency
(multiplier)
5

Maximum event
frequency
(multiplier)
5

(50 000)

P 15 000

(50 000)

Ushers and manpower (1500)

Transportation Expense (2000)
Salary share (3000)
Token and evaluation (2000)
Month of August - November (gross profit)

Event category

Maximum event
frequency
(multiplier)
5

Selling Price

Income
Projection

4-5 months
6
preparation
Less:
Meetings (7500) 37 500
Ushers and manpower (1500) 7500
Transportation Expense (8000) 40 000
Salary share (12000) 60 000
Token and evaluation (2000) 10 000
Month of December - February (gross profit)

40 000

200 000

Event category

Willing buyers

Selling Price

Income
Projection

35 000

175 000

Maximum event
frequency
(multiplier)
5

3 months
preparation
Less: (multiplier 5)
Meetings (6000)
Ushers and manpower (1500)
Transportation Expense (5000)
Salary share (12000)
Token and evaluation (2000)
Month of March - May (gross profit)
END OF YEAR 3 GROSS PROFIT

Willing buyers

P 15 000

(155 000)

P 45 000

(132 500)

P 42 500
P 117 500

FOURTH YEAR (FIRST 3 MONTHS) after expansion of partner

Event category

Maximum event
frequency
(multiplier)
6

1 month
preparation
Less:
Meetings (1500)
Ushers and manpower (1500)
Transportation Expense (2000)
Salary share (3000)

Willing buyers

Selling Price

Income
Projection

15 000

90 000
(60 000)

Token and evaluation (2000)

Month of June - July (gross profit)

P 30 000

E. BREAK-EVEN ANALYSIS

Fixed Cost
Divided by
Contribution
Margin

Break-even
analysis in pesos

Year 1
135 500
0.5292968

135 499. 54

Table 1.7: Break-Even Analysis

Year 2
Year 3
152 500
152 500
0.525862
0.525862

152 499.56

Computation:
480 000-224000 = 256 000
525000- 235 000= 290 000
525000- 235 000= 290 000

[Fixed Cost / 1 (Variable Cost / Sales)]

152 499.56