VII.
Financial Plan
A. Assumptions
A.1. Production Data
A.1.1. Purchase Price of raw materials
Direct Labor
Raw Price per Item Weekly Monthly Yearly
Materials (Per
Production)
Tanigue P 450.00 P 2,700.00 P 11,700.00 P 140,400.00
Fish
Wrapper 225 1,350 5,850 70,200
Flour 46 276 1,196 14,352
Carrots 60 360 1,560 18,720
Eggs 45 270 1,170 14,040
Rice 100 600 2,600 31,200
Spring 20 120 520 6,240
onion
Pepper 10 60 260 3,120
Garlic 30 180 780 9,360
Lemon 10 60 260 3,120
Vinegar 19 114 494 5,928
Sugar 25 150 650 7,800
Luya 10 60 260 3,120
Total P 1,050.00 P 6,300.00 P 27,300.00 P 327,600.00
A.1.2. Direct labor
Direct Labor Cost
Pay Rate Project time Direct Labor Cost
49.38 3 148.14
Direct Labor Cost = Labor cost_____
(Per Product) Quantity Produce
= 148.14_____
80
Direct Labor Cost = 1.85 per product
(Per Product)
A.1.3. Packaging cost
Price per Item Weekly Monthly Yearly
(Per
Production)
Packaging ₱296.00 P 1,776.00 P 7,696.00 P 92,352
Cost
Indirect 88.46 531 2,300 27,600
Cost
Total MOH ₱384.46 P 2,307.00 P 9,996.00 P 119,952
A.2. Sales Data
A.2.1. Selling Price or product
Quantity Produced ( 80 packs
Per Product ) (40 packs with rice and
40 packs with non rice)
Cost per pack ₱25.00
Selling Price ₱30.00 (without rice )
P 35.00 ( with rice )
A.2.2. Sales Volume
Mackerel Siomai without Rice
2025 2026 2027
Per Production P 1,200.00 P 1,320 P 1,584
Weekly 7,200.00 7,920 9,504
Monthly 31,200.00 34,320 41,184
Yearly 374,400.00 411,840 494,208
TOTAL P 414,000.00 P 455,400.00 P 546,480.00
Mackerel Siomai without Rice
2025 2026 2027
Per Production P 1,400.00 P 1,540 P 1,848
Weekly 8,400.00 9,240 11,088
Monthly 36,400.00 40,040 48,048
Yearly 436,800.00 480,480 576,576
TOTAL P 483,000.00 P 531,300 P 637,560
2025 2026 2027
Total
Production
(with and P 897,00.00 P 986,700 P 1,184,040
without rice )
A.3. Operating Expense
A.3.1. Advertising and Promotion Expenses
Flyers ₱1,000/ month
Social Media Advertising 3,000/ month
Total Monthly Advertising
Expense ₱4,000/ month
A.3.2. Salaries expense
Monthly 2025 2026 2027
₱11,555 ₱138,659 ₱145,592 ₱174,710
A.3.3. Utility Expense (Light and Water)
Monthly Yearly
Water Bill P 200 P 2,400
Electricity P 300 P 3,600
A.3.4. Depreciation expense
Asset(s) Acquisiti Cost Deprec Useful Residu Annual Accumu Book
on date iation life al value depreci lated value
metho (yr) ation depreci
d ation
Equipment 2025 P50,000 Straigh 5 yrs 0 P 5,000 P 5,000 P 45,000
(year 1) t line
2026 50,000 Straigh 5 yrs 0 5,000 10,000 40,000
(year 2) t line
2027 50,000 Straigh 5yrs o 5,000 15,000 35,000
(year 3) t line
B. Capital Requirement
Table X. List of Equipments and Materials
Items Total Number Needed Total Costs
Tong 1 P 25.00
Knife 1 P 59.00
Chopping Board 1 P 40.00
Frying Pan 1 P 150.00
Steamer 1 P 150.00
Pot 1 P 150.00
Stove 1 P 350.00
Gas 1 P 300.00
TOTAL 8 P 1,249.00
B.2. Monthly Cost of Production and Operation
Cost Component Amount (₱)
Direct Costs (Materials + ₱46,558
Labor)
Indirect Costs (Overhead) ₱2,300
Packaging Costs ₱ 7,696.00
Advertising and ₱4,000
Promotion
Total Monthly Cost ₱ 60,554.00
C. Financial Statement
EYAAA Food Product
Projected Income Statement
For the Year Ended December 31, 2025
Sales P811,200
Less: Cost of Good Sold 216,541
Gross Profit 594,659
Less: Operating Expense
Salaries 138,659
Advertising and Promotion Expense 48,000
Utilities Expense 6,000
Depreciation Expense 5,000
Total Operating Expense 197,659_
Net Income: ₱397,000
EYAAA Food Product
Projected Balance Sheet
For the Year Ended December 31, 2025
ASSETS
Current Assets
Cash ₱ 500,000
Total Current Asset ₱500,000
Fixed Assets:
Equipment (at cost) ₱50,000
Less: Accumulated Depreciation (5,000) 45,000
Total Assets ₱645,000
Liabilities
Total Liabilities -
Partner’s Capital ₱248,000
Add: Net Income (2025) 397,000
Total Partners Capital 645,000
Total Liabilities and Capital P645,000
EYAAA Food Product
Projected Cash Flow
For the Year Ended December 31, 2025
Cash balance, Beginning
Start -up capital P 500,000
Cash inflow
Cash sales 811,200
Total cash Inflows P 1,311,200
Cash Outflow
Equipment 14,988
Raw Materials 27,300
Labor 138,659
Overhead 27,600
Expenses
Advertising and Promotion Expense 48,000
Utilities Expense 6,000
Total Cash Outflows 262,547
Cash Balance, ending P 1,048,653
EYAAA Food Product
Projected Income Statement
For the Year Ended December 31, 2026
Sales P 892,320
Less: Cost of Good Sold 240,926
Gross Profit P 651,394
Less: Operating Expense
Salaries 145,592
Advertising and Promotion Expense 88,200
Utilities Expense 6,300
Depreciation Expense 5,000
Total Operating Expense 245,092__
Net Income: ₱406,302
EYAAA Food Product
Projected Balance Sheet
For the Year Ended December 31, 2026
ASSETS
Current Assets
Cash ₱550,000
Production Materials 61,764 ₱611,764
Fixed Assets:
Equipment (at cost) ₱50,000
Less: Accumulated Depreciation (10,000) 40,000
Total Assets ₱571,764
Liabilities
Payables ₱61,764
Total Liabilities 61,764
Partner’s Capital ₱103,698
Add: Net Income (2025) 406,302
Total Partners Capital 510,000
Total Liabilities and Capital P571,764
EYAAA Food Product
Projected Cash Flow
For the Year Ended December 31, 2026
Cash balance, Beginning
Start -up capital P 1,048,653
Cash inflow
Cash sales 892,320
Total cash Inflows P 1,940,973
Cash Outflow
Equipment 16,487
Raw Materials 30,030
Labor 152,525
Overhead 30,360
Advertising and Promotion Expense 52,800
Utilities Expense 6,600
Depreciation Expense 5,000
Total Cash Outflows 288,802
Cash Balance, ending P 2,229,775
EYAAA Food Product
Projected Income Statement
For the Year Ended December 31, 2027
Sales P 981,552
Less: Cost of Good Sold 265,019
Gross Profit 716,533
Less: Operating Expense
Salaries 160,151
Advertising and Promotion Expense 97,020
Utilities Expense 6,930
Depreciation Expense 5,000
Total Operating Expense 269,101
Net Income: ₱447,432
EYAAA Food Product
Projected Balance Sheet
For the Year Ended December 31, 2027
ASSETS
Current Assets
Cash ₱605,000
Production Materials 67,940 ₱672,940
Fixed Assets:
Equipment (at cost) ₱50,000
Less: Accumulated Depreciation (15,000) 35,000
Total Assets ₱707,940
Liabilities
Payables 67,940
Total Liabilities 67,940
Partner’s Capital ₱ 192,568
● Add: Net Income (2027 ) 447,432
Total Partners Capital 640,000
Total Liabilities and Capital P 707,940
EYAAA Food Product
Projected Cash Flow
For the Year Ended December 31, 2027
Cash balance, Beginning
Start -up capital P 2,229,775
Cash Inflow
Cash sales 981,552
Total cash Inflows P 3,211,327
Cash Outflow
Equipment 18,136
Raw Materials 33,033
Labor 167,778
Overhead 33,396
Advertising and Promotion Expense 58,080
Utilities Expense 7,260
Depreciation Expense 5,000
Total Cash Outflows
Cash Balance, ending P2,482,000
Ratios and Analysis
Net Profit Margin
2025
Net Profit Margin = (𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 ÷ 𝑆𝑎𝑙𝑒𝑠) × 100
= (₱397, 000 ÷ 811, 200 ) × 100
= 0. 49 × 100
= 49 %
The net profit margin in 2025 is 49%, which is quite high. This indicates that for every peso of
revenue, EYAAA Food Product retained nearly 50 centavos as profit.
2026
Net Profit Margin = (𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 ÷ 𝑆𝑎𝑙𝑒𝑠) × 100
= (₱406, 302 ÷ 892, 320 ) × 100
= 0. 46 × 100
= 46 %
The net profit margin decreased slightly to 46% in 2026, a drop of 3 percentage points from the
previous year.
2027
Net Profit Margin = (𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 ÷ 𝑆𝑎𝑙𝑒𝑠) × 100
= (₱399, 331 ÷ 981, 552 ) × 100
= 0. 41 × 100
= 41 %
2025
𝑅𝑂𝐼 = (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 ÷ 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡)×100
= ( 397, 000 ÷ 645, 000) × 100
=0. 62 × 100
= 62%
2026
𝑅𝑂𝐼 = (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 ÷ 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡)×100
= (406, 302 ÷ 571, 764) × 100
=0. 71 × 100
= 71%
2027
𝑅𝑂𝐼 = (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 ÷ 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡)×100
= ( ₱399, 331 ÷ 707, 940) × 100
=0. 56 × 100
= 56%
The ROI shows a peak in 2026, reflecting higher profitability relative to total
investment.
Horizontal Analysis of the Income Statement
Sales
2025: ₱811,200
2026: ₱892,320
2027: ₱981,552
𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 = (𝐵𝑎𝑠𝑒 𝑃𝑒𝑟𝑖𝑜𝑑 𝐴𝑚𝑜𝑢𝑛𝑡𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑃𝑒𝑟𝑖𝑜𝑑 𝐴𝑚𝑜𝑢𝑛𝑡 − 𝐵𝑎𝑠𝑒 𝑃𝑒𝑟𝑖𝑜𝑑 𝐴𝑚𝑜𝑢𝑛𝑡)×100
From 2025 to 2026:
Percentage Change = (811, 200892, 320 − 811, 200)×100
= 10. 00%
From 2026 to 2027
Percentage Change = (892, 320981, 552 − 892, 320)×100
= 10. 00%
Analysis: Sales increased by 10% each year, showing steady growth in revenue over the
three-year period.
Cost of Goods Sold (COGS)
2025: ₱216,541
2026: ₱240,926
2027: ₱289,111
From 2025 to 2026
Percentage Change =(240, 926 − 216, 541 ÷ 216, 541)×100 = 11. 27%
From 2026 to 2027
Percentage Change = (289, 111 − 240, 926 ÷ 240, 926)×100 = 20. 00%
Analysis: The cost of goods sold has risen significantly, with a notable 20% increase
from 2026 to 2027. This increase may indicate higher raw material or production costs,
which could affect profit margins.
Gross Profit
2025: ₱594,659
2026: ₱651,394
2027: ₱692,441
From 2025 to 2026
Percentage Change = (651, 394 − 594, 659 ÷ 594, 659)×100 = 9. 53%
From 2026 to 2027
Percentage Change = (692, 441 − 651, 394 ÷ 651, 394)×100 = 6. 30%
Analysis: Gross profit is increasing, but the growth rate slows down in 2027 compared
to 2026. This could be due to the rising cost of goods sold.
Operating Expenses:
2025: ₱197,659
2026: ₱245,092
2027: ₱293,110
From 2025 to 2026
Percentage Change = (245,092−197,659÷ 197, 659)×100= 24.00%
From 2026 to 2027
Percentage Change = (293,110−245,092÷ 245, 092)×100= 19.60%
Analysis: Operating expenses have increased significantly, with a 24% rise in
2026 and a 19.6% rise in 2027.
Net Income:
2025: ₱397,000
2026: ₱406,302
2027: ₱399,331
From 2025 to 2026
Percentage Change = (406,302−397,000÷ 397, 000)×100= 2.35%
From 2026 to 2027
Percentage Change = (399, 331 − 406, 302 ÷ 406, 302)×100 = − 1. 72%
Net income shows a slow increase in 2026, but a slight decline in 2027. The decline in
net income in 2027 is likely due to higher operating expenses and the significant
increase in the cost of goods sold.
