The Total Investment Cost

1. Total Project Cost

The total investment cost of P200,000 is composed of fixed assets of P66,563, organizational costs of P9,804 and working capital of P129,215 as shown in Table 22.

Cash Flow Projections

In the preparation of the financial statements, the proponents have considered all financial data gathered and computed.

1. Cash Flow Projections

This statement shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis to operating, investing, and financing activities. The business is assumed to have a projected Ending Cash balance of Php 41,605 in the first year and Php 58,003 in the fifth year.

1. Income Statement

This statement shows the business profit or loss over a period of time. The business is assumed to have a projected income of Php 874,809 in the first year and Php 1,513,990 in the last year.

1. Statement of Financial Position

This statement shows the liquidity, solvency, and financial structure of a business through its assets, liabilities and capital. It shows the overall financial condition of the business on a certain period of time. The business is assumed to have a projected total liabilities and owner’s equity of Php 94,855 in the first year and Php 58,003 fifth in the last year.

Break-Even Point