Dress Shop

Name of the Enterprise The business name â€Å"Wedlock Trends† will display a wedding dress shop that will offer the latest and the hottest styles of wedding apparel of the season. Location The location of the business is at Door 4, 500 Gabaton Building, Elpidio Quirino Avenue, Davao City. The commercial space measures 5Ãâ€"14 sq. The space will be rented at P12, 000/month, exclusive of water and electricity expenses. The area is a perfect spot for a wedding dress shop for it is easy to find since it is located in the main road. Aside from that, the area is filled with office buildings, inns, schools, and other business entities nearby.Descriptive Definition of the Product Wedlock Trends shall cater to the needs of grooms and brides in a comfortable and relaxed setting. In its warm and intimate setting, the Wedlock Trends’ friendly and knowledgeable bridal consultants are available to help in finding everything that they need for their upcoming wedding. We offer bridal dresses and all the accessories as well as fashions required for the rest of the bridal party. Project’s Long-Range Objectives Wedlock Trends has been created with one main objective: to provide the bride with the ultimate experience in finding the perfect wedding dress!In 2016, Wedlock Trends will create tie-ups with the prominent photo studio and flower shop here in Davao. It will be convenient for our clients for they don’t have to waste their time searching for quality photos and videos as well as fresh and beautifully arranged flowers. Wedlock Trends will expand and cater other occasions as well. Elegant night gowns, classic dresses, up-to-date men’s suit, and a lot more will be added to our collection for parties, debuts, and other significant events. By doing such, it is expected that the number of employees in every department will be increased as well as the machineries used in the process.Feasibility Criteria The most important guidelines used to judg e the feasibility of the project is its marketing aspect and financial aspect. The marketing aspect tells what the project is all about, who the target market is, when is the perfect time to open the business, where is it located, and how is it going to compete with its competitors. It is also where the demand and supply analysis is, which will be a great criterion. The financial aspect provides the data that shows the projects profitability. It is important to know if the project is attainable, feasible, and profitable.Highlights Of The Project History Many young girls dream about what kind of wedding dress they’d like to wear on their special day so we have thought of creating a project that will certainly be desired by our target market. It’s a business that caters not only the needs of a soon-to-be couples but one that fulfills their dreams, to have a unique and remarkable wedding. This is an amazing business which has developed a strong, distinctive and individual identity with a reputation for both quality and service – very profitable business.This is a delightful business with bridal gowns to suit every style of wedding. It is fantastic opportunity to own a money making business in a very up-market industry. This business is not just a business, it is a life style choice with plenty of fashion. This very good business opportunity provides bridal wear, stocked with a superb range of designer wedding gowns, bridal accessories include jewelry, tiaras, stationery, gifts, to compliment any wedding reception which is excellent for add-on purchases. This is a business opportunity to own and grow a dynamic business .This is an amazing opportunity for someone who just wants to literally wants to jump straight in and continue the exceptional success achieved. It is a business opportunity that is highly profitable and offers great potential whether h global, national or local aspect. Project Time Table and Status The project is expected to be operational by May 2014. For now, thorough studies and research are being done to carefully analyze its standing once we enter the market. Nature of the Industry The wedding gown industry is one that is made up of multiple smaller enterprises like caterers, wedding consultants, dresses, various eauty suppliers (hair, makeup), photographers, favors/bridesmaids gifts, music, honeymoon related, etc. While the industry as a whole represents a lot of money, each of the component parts is much smaller — some smaller than others. These smaller composite suppliers can be very local and likely will be small and privately owned. Mode of Financing The source of funds of Wedlock Trends that will be used to put up the business is from the contributions of the four (4) persons who will be the owner of the dress shop.Each shall contribute P625, 000 for a total of P2, 500, 000. 00. A cash contribution is better than bank loans for it has a lower risk and high interest cost which will result to lower income. Investment Cost The funds allocated for this project is P2, 500, 000. 00. The proponents have agreed to form a partnership wherein four (4) persons merge to contribute for the capitalization of Wedlock Trends, with the intention of dividing the profits among themselves. Major assumptions and summary of findings and conclusion on the following: Market FeasibilityIn our Market Study, we identify who will be our customers, suppliers, and competitor as well as the number of demand that we will gain in the succeeding years. In our data of demand analysis the first year show lesser number of demands, it is because Wedlock Trends is new to the market and customers do not know the business yet. The succeeding years shows the increasing number of demand, it is because Wedlock Trends formulated a marketing program which to have a flyers, posters and streamers printing for the customer to be aware about the existing of the business. Technical FeasibilityWedlock Trends is a cl othing business designed to make wedding gowns, barongs, tuxedo’s and cocktail dresses. The business offer readymade dresses aside from made to order and customize clothes. The supply is high; there are many companies who supply such equipment. Financial Feasibility The Wedlock Trend Dress Shoppe shows an income statement of the cash flows the cash receipts such as profit, salary, capital and so on has an increase every year. It means that the business gaining a profit. For the balance sheet, there is also an increase and the total assets and the total liabilities and owners’ equity is well balance.For the ratio analysis, the profit ratio has an average of 41. 26% means there is a profit of . 43. For the payback capital computation, there is 2. 21, means the capital of the business can be recovered within 2 years. Socio-economic Feasibility The number of Wedding dress shop in Metro Davao is rapidly increasing. The more competition, the better it is for the market, beca use innovation, better products and service will be present. These industries will affect the economy as a whole on a much more scale. It gives employment to those who seeks job. Management FeasibilityThe structure of the business begins with the four (4) persons/partners who are also the owners of the business. The manager will handle the sales, manufacturing and service aspects of the business. In terms of salary scale, the manager will be compensated with minimum wage and the other employees are below the minimum wage. MARKET STUDY Clothing is a beautiful visual demonstration of the social and emotional needs of people wearing it. It also portrays in a clearly understood visual manner, what people of different cultures and styles want socially.Fashion, through times, has gone through so many rapid changes and bizarre extremes that it has examples of nearly every kind of clothing function, especially when it comes to wedding attires. The range of Filipino wedding dresses is remark ably wide, according to the vast cultures, geographical differences, purchasing capacities, influence of the western culture, and bewildering diversities of the ethnic groups. One has, therefore, to sift and isolate, and then relate and bring together, the ideas for creating various designs, which can fit in the context of theFilipino style, conservative, elegant yet still in trend. When it comes to the most special day of a couple’s life, we like to make a personal effort to make it all that it can be. The business will be a full-service wedding dress shop catering to customers who are searching for reasonable quality products at affordable prices. Our main focus will be quality in every process right from buying stuff, raw material selection, designer selection, stitching till the delivery of product to final customer in order to fulfill our goal of customer satisfaction.We will be providing standardized products as well as customized dresses according to ones needs. Geogra phical areas of dispersion The location of the business is at Door 4, 500 Gabaton Building, Elpidio Quirino Avenue, Davao City. The commercial space measures 5Ãâ€"14 sq. The rental price is P12, 000. 00 per month, exclusive of water and electricity expenses. Our Competitors are the Wedding Glamour, Wedding Channel, Wedding Avenue, and Knot’s Forever. Target Market The scope of our wedding dress shop is the people living within Metro Davao with a population of 1,449,296 (National Statistics Office, 2010).To be specific, most of the target market will be composed of couples of ages 18 years old and above, teenagers and young adults in high school and college, and young professionals, who belong to the middle and upper class. The middle class customers are those who have moderate income and have the capability to purchase products and services with high quality. The upper class customers are those who have high income and have the capability to purchase product and services wit h high quality, and look for luxury. Target Market |Age |Population | |Couples |18 – 64 years old |635,412 | |Teenagers |13 – 18 years old |255, 465 | |Young Adults |20 – 24 years old |117,083 | |Young Professionals 25 – 34 years old |186, 691 | |Walk-ins |18 – 64 years old |635,412 | Demand Analysis Projection of the number of the products to be sold. PRODUCTS |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 | | | | |Bridal Gown |– inclusive headdress, 2nd veil, cord, (2) cushions, pouch bag | |Grooms’ Barong |– pinya jusi with embroidery (free makeup) | |Whole Entourage |(1) maid of honor, (3) bridesmaids, (3) flower girls | | |(1) best man barong, (3) groomsmen barongs, | | |(3) bearers (ring, coin, bible) | |Parents’ outfits of the couple |- parents of the couple | | |free pictures | |Bronze Special Package = P 20,000. 00 | | |Bridal Gown |– inclusive headdress, 2nd veil, cord, (2) cushions, pouch bag | | |free ma ke up | |Grooms’ Barong |– pinya jusi with embroidery (free makeup) |Whole Entourage |(1) maid of honor, (3) bridesmaids, (3) flower girls | | |(1) best man barong, (3) groomsmen barongs, | | |(3) bearers (ring, coin, bible) | |Parents’ outfits of the couple |- parents of the couple | | |free pictures | | |free video CD of the wedding | |Gold Special Package = P 30,000. 0 | | |Bridal Gown |– inclusive headdress, 2nd veil, cord, (2) cushions, pouch bag | | |free gown and make up | |Grooms’ Barong |– pinya jusi with embroidery (free makeup) | | |free male perfume | |Whole Entourage |(1) maid of honor, (3) bridesmaids, (3) flower girls | | |(1) best man barong, (3) groomsmen barongs, | | |(3) bearers (ring, coin, bible) | |Parents’ outfits of the couple |- dress & suits for the parents of the couple | | |free pictures | | |free video CD of the wedding | |Diamond Special Package = P 50,000. 0 | | |Bridal Gown |– inclusive head dress, 2nd veil, cord, (2) cushions, pouch bag | | |free gown, make up, bouquet | |Grooms’ Barong |– pinya jusi with embroidery (free makeup) | | |free male perfume | |Whole Entourage |(1) maid of honor, (3) bridesmaids, (3) flower girls | | |(1) best man barong, (3) groomsmen barongs, | | |(3) bearers (ring, coin, bible) | |Parents’ outfits of both couple |- dress & suits for the parents of the couple | | |free pictures with album | | |free video CD of the wedding | | |free picture publicity on Mindanao Daily Mirror | Competitor’s Analysis |Name of Competitor |Products/Services |Location |Store Hours | |Wedding Glamour |Gown & Entourage Package: |Door 1 Gahol Bldg. , E Quirino|9:00 – 5:00pm | | |1 Bridal Gown w/ accessories |Ave. , Davao City | | | |1 Groom Attire | | | |1 Maid of Honor Gown | | | | |3 Bridesmaid Gowns | | | | |3 Flower Girl Gowns w/ basket | | | | |1 Bestman Barong | | | | |3 Groomsmen Barong/Tuxedo | | | | |3 Bearer’s B arong/Tuxedo | | | | |2 Mother Dress | | | | |2 Father Barong | | | |Wedding Avenue |Gown & Entourage Package: |Front of Dep-Ed, E. Quirino |9:00 – 5:00pm | | |1 Bridal Gown w/ accessories |Ave. | | | |1 Groom Attire |Davao City | | | |1 Maid of Honor Gown | | | | |3 Bridesmaid Gowns | | | | |3 Flower Girl Gowns w/ basket | | | | |1 Bestman Barong | | | | |3 Groomsmen Barong/Tuxedo | | | | |3 Bearer’s Barong/Tuxedo | | | | |2 Mother Dress | | | | |2 Father Barong | | | |Wedding Channel |Gown & Entourage Package: |E.Quirino Avenue, Davao City| | | |1 Bridal Gown w/ accessories | | | | |1 Groom Attire | | | | |1 Maid of Honor Gown | | | | |3 Bridesmaid Gowns | |8:00 – 5:00pm | | |3 Flower Girl Gowns w/ basket | | | | |1 Bestman Barong | | | | |3 Groomsmen Barong/Tuxedo | | | | |3 Bearer’s Barong/Tuxedo | | | | |2 Mother Dress | | | | |2 Father Barong | | | |Knots Forever |Bridal Package: | | | | |1 Bridal Gown | |8:00 – 5:00pm | | |1 Head Dress |E. Q uirino Avenue, Davao City| | | |1 1st Veil | | | | |1 2nd Veil | | | | |1 Cord | | | | |2 Cushions | | | |1 Groom Barong / Tuxedo | | | | |Entourage: | | | | |1 Maid of Honor Gown | | | | |1 Maid of Honor Head Dress | | | | |3 Bridesmaid Gowns | | | | |3 Flower Girls Gown | | | | |3 Baskets | | | | |1 Best Man | | | | |3 Groomsmen Barong | | | | |3 Bearer’s Barong | | | Marketing Program Our means of advertisements are posters and streams printing, through networking sites, and fashion shows. Posters and Streamers Printing – This can also be a tool for advertising.We can put posters and streamers printing at malls and hotels and restaurants for them to easily recognize our product. Facebook & Multiply – Billions of people, foreign or local are users of Facebook. And these people logs in almost everyday for about an hour or more. Through Facebook and Multiply, it is easier to reach the right audience. It is easy, convenient, and costs no cent. Newspaper Ads â₠¬â€œ The oldest form of advertising is still an effective way to reach a large number of people. These ads can do a lot more than just advertise one item or one sale–each one can work really hard to bring in customers, and then bring them back again and again. They're a good way to reach a large number of people, especially those aged 45-plus who end to read the paper more frequently than younger demographic groups who tend to get their news from television, radio or the internet. And we can target our ads to the appropriate markets by requesting that our ads run in the section(s) that most closely relate to our target audience. MANAGEMENT STUDY Personnel Expertise Wedlock Trends will hire one (1) manager, two (2) sewers, two 2 (cutters), two (2) beaders. The descriptions of hiring employees are the following: |Manager – |Responsible for maintaining the store in order to ensure residents and visitors have access to necessary supplies and| | |accommodations. |Responsibi lities |Maintain customer services and facilities | | |greet customers and provide assistance | | |maintain cleanliness and order in the store | | |Maintain stock, supplies and inventories | | |take inventory | | |order groceries and supplies | | |mark prices on stock | | |restock shelves | | |Maintain accounts | | |record prices in the log book | | |operate the cash register | | |balance cash receipts | | |make deposits | | |record visa and debit accounts | | |maintain a manual general ledger | |Qualifications |Minimum 3 years of retail management experience. More extensive retail experience will be welcomed. Experience in | | |personal computer retail setting is preferred, but not mandatory. | |Must have an interest in fashion and have an eye for art. | | |Strong leadership skills. | | |Ability to effectively teach/develop others to next level. | | |Good merchandising skills and a flair for conceiving and implementing creative merchandising themes. | | |Strong operations exp erience in receiving, stock and inventory as well as front-end management and office management. | | |Ability to organize and prioritize multiple tasks in a fast-paced environment. | | |Strong interpersonal, motivational, communication and organizational skills. | |At least 25 years old | |Sewer – |Sewers cut, trim, sew and design clothing and accessories according to the company or client’s demand | |Responsibilities |Sew, trim and stitch gowns/suits and other tailored products. | | |Draw and design gowns/suits to present to the company or clients | | |Measure client’s vital statistics that will use as a pattern for the clothes. | | |Sew gowns/suits using sewing machine or other stitching machines. | | |Inspect finished product and do finishing touches. | |Hand stitch edges or linings | | |Iron gowns/suits | |Qualifications |Must have taken vocational or short course in tailoring | | |Must have at least 3-5 years experience as a sewer or tailor | | |Knowledg e in sewing, both hand and machine sewing | | |Knowledge and ability on different kinds of stitches and design | | |Knowledge in different kinds of cloths | | |Knowledge and ability to sew in different kinds of clothes. | | |Knowledge in fashion designing is a plus | | |Knowledge and ability to design wearable and appealing gowns/suits | | |Ability to use sewing machines. | |Pattern Cutter – |Pattern cutters create templates for the kinds of patterns that will be used in clothing lines, based on illustrated | | |designs created by the design department of the fashion company. |Responsibilities |Cut fabrics or textiles | | |Adjust cutting techniques to types of fabrics and styles of garments. | | |Adjust machine controls, such as heating mechanisms, tensions, and/or speeds to produce specified products. | | |Inspect products to ensure that specifications are met and to determine whether machines require adjustment. | | |Operate machines to cut multiple layers of fabric int o parts | |Qualifications |Must have an interest in fashion and have an eye for art. | |Must have good analytical skills | | |Must be computer literate | | |Must be able to work quickly | |Beader – |Beaders are responsible of putting beads and sequins on bridal gowns for accent. | |Responsibilities |Puts beads and sequins on gowns | | |Inspect products to ensure that specifications are met and to determine whether machines require adjustment. | |Qualifications |Must have an interest in fashion and have an eye for art. | |Preferably with 3 years experience in custom-made formal wear | | |With good moral character and working habit | Working Salaries and Benefits Below are the salaries and benefits of the employees. |PERSONNEL |PHILHEALTH |SSS |TOTAL | |Manager |P 301. 00 every quarter |P 225. 00 per month |P 9,030. 00 per month-based on minimum P 301. 0| | | | |daily | |Sewer |P 205. 00 every quarter |P 125. 00 per month |P 4,400. 00 per month | |Cutter | | | | |Beader | | | | |NOTE: |The sewers, cutters, and beaders are not based on minimum wages because they are not yet regulars. | Organizational ChartThe organizational chart of Wedlock Trends shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. As a starting business, Wedlock Trends involve few personnel/staff. The manager assumes the leadership roles within the company and will be responsible for the daily operation, over-seeing marketing efforts, buying merchandise, managing inventory and all other administrative duties. The other staffs will assist the owner with assisting the customers and the sewers, cutters, beaders to maintain the dress will be good quality to the customers. Gantt Chart Below is the calendar of activities of Wedlock Trends. OOperating Activities | |Activities | |Activities | |Particulars |Quantity |Price |Acquisition Value | |Bridal Fabric (local) |5 rolls |125/m |P 34,375. 00 | |Bridal Fabric (imported) |3 rolls |395/m |65,175. 00 | |Bridal Lace (local) |5 rolls |280/m |77,000. 00 | |Bridal Lace (imported) |3 rolls |550/m |90,750. 00 | |Pants/Slacks Fabrics |5 rolls |145/m |39,875. 0 | |Dress/Gown (local) |5 rolls |55/m |15,125. 00 | |Dress/Gown (imported) |3 rolls |120/m |19,800. 00 | |Barong |5 rolls |108/m |29,700. 00 | |Tuxedo |5 rolls |125/m |34,375. 00 | |Buttons |5 kilos |250/k |1,250. 0 | |Beads and Sequins |5 kilos |300/k |1,500. 00 | |Embroidery Threads |5 boxes |360/b |1,800. 00 | |Embroidery Threads |4 boxes |1320/b |5,280. 00 | |Needle Book (kit) |5 boxes |6. 50 |32. 50 | |Sewing Thread |8 boxes |206. 5/b |1,651. 60 | |Zipper |8 rolls |33 |264. 00 | |Tape Measure |5pcs |4 |20. 00 | |Yard Stick |5pcs |22. 75 |113. 75 | |Garter |7 rolls |315/r |2,205. 00 | |TOTAL | |P 420, 291. 85 | | Office Materials | |Particular |Quantity |Price Per Unit |Acquisition Value | |Stapler |2 |P 120. 00 |P 240. 00 | |Scissors |3 |55. 00 |165. 00 | |Calculator |2 |390. 00 |780. 0 | |thumbtacks |4 |10. 00 |40. 00 | |TOTAL | | |P 1,225. 00 | |Office Supplies | |Particular |Quantity |Price Per Unit |Acquisition Value | |Long Coupon Bond |1 ream |P 168. 00 |P 168. 0 | |Short Coupon Bond |1 ream |158. 00 |158. 00 | |Pencils |15 pcs |6. 00 |90. 00 | |Pens |10 pcs |7. 00 |70. 00 | |Staples |5 boxes |15. 00 |75. 00 | |Folders |50 pcs |6. 00 |300. 0 | |Paper Clips |1 box |25. 00 |25. 00 | |Fastener |1box |35. 00 |35. 00 | |Record Book |1 pcs |89. 00 |89. 00 | |Binder Aids |1 box |32. 00 |32. 00 | |Adhesive tape |2pcs |22. 0 |44. 00 | |TOTAL | | |P 1,086. 00 | Machineries and Equipment |Machine | |Particulars |Quantity |Price |Life |Acquisition Value |Annual Depreciation | |Sewing Machine |3 |P 8,995. 00 |5 |P 26,985. 00 |P 5,397. 0 | |Embroidery Machine |2 |12,300. 00 |5 |24,600. 00 |4,920. 00 | |TOTAL | | | | |P 10,317. 00 | II – Equipment |Equipment | |Particular |Quantity |Price |Life |Acquisition Value |Annual Depreciation | |Computer Set |1 |P 25,000. 0 |5 |P 25,000 . 00 |P 5,000. 00 | |Printer |1 |3,500. 00 |5 |3,500. 00 |700. 00 | |Air Conditioner |1 |14,000. 00 |5 |14,000. 00 |2,800. 00 | |Water Dispenser |1 |4,200. 00 |5 |4,200. 00 |840. 00 | |Body Form |6 |2,000. 00 |5 |12,000. 00 |2,400. 0 | |Working Table |1 |3,900. 00 |5 |3,900. 00 |780. 00 | |Steel Cabinet |1 |5,700 |5 |5,700. 00 |1,140. 00 | |Electric Iron |1 |690. 00 |- |690. 00 |- | |Ironing Board |1 |350. 00 |- |350. 00 |- | |Electric Fan |1 |1,300. 00 |- |1,300. 0 |- | |Clotheslines Stand |5 |1,299. 00 |- |6,495. 00 |- | |Dress Bag |100 |49. 00 |- |4,900. 00 |- | |Hangers |20 |74. 75/set |- |1,495. 00 |- | |Coat Hangers |50 |69. 75 |- |3,487. 00 |- | |Soft Broom |1 |45. 0 |- |45. 00 |- | |Trash Bin |1 |89. 50 |- |89. 50 |- | |Dust Pan |1 |25. 00 |- |35. 00 |- | |Pail |1 |115. 00 |- |115. 00 |- | |TOTAL | | | |P 87,301. 50 |P 13,630. 00 | Utilities Consumption Operating Expense | |Particulars |Amount | |Lease Payment |P 24,000. 00 | |Office Supplies |13,032. 00 | |Dress Shop Suppl ies |420,291. 85 | |Repair and Maintenance |144,000. 0 | |Electricity Utilities |5,786. 00 | |Telephone Utilities |11,988. 00 | |Water Utilities |6,000. 00 | |TOTAL |P 625,097. 85 | FINANCIAL STUDY Project Cost Summary Project Cost Summary | | |Amount | |Capital Expenditure | | | |Furniture and Fixture |P 45,880. 00 | | |Office Equipment |87,301. 50 |P 133,181. 50 | | | |Direct Expenditures | | | |Feasibility Study (preparation) |7,000. 0 | | |Survey |3,000. 00 | | |Partnership Expense |5,750. 00 | | |Permit and Licenses |1,725. 00 | | |Legal Fees |3,500. 00 | | |Insurance |3,500. 0 | | |Advertising Expense |1,930. 00 | | |Office Material |1,225. 00 |27,630. 00 | | | |Working Capital (1 month) | | | |Salaries |26,550. 0 | | |Light and Power | | | |Electric Bill (482. 25) | | | |Water Bill (500. 00) |982. 25 | | |Communication | | | |Telephone (999. 00) |999. 0 | | |Lease Payments |2,000. 00 | | |Repair and Maintenance |12,000. 00 | | |Office Supplies |13,032. 00 | | |Dres s Shop Supplies |96,158. 77 |151,722. 02 | |TOTAL | |312,533. 2 | The total estimated Total Project Cost for WEDLOCK TRENDS is P312, 533. 52. |Wedlock Trend Dress Shoppe | |Projection Income Statement | |For the 1st year until 5th year | | |2014 |2015 |2016 |2017 |2018 | |Sales (sched. XI) |P1,754,400. 0 |P2,418,600. 00 |P2,891,040. 00 |P3,098,400. 00 |P3,576,000. 00 | |Direct Expense |27,630. 00 | | | | | |Salary (sched. VIII) |318,600. 00 |321,786. 00 |325,003. 86 |328,253. 90 |331,536. 44 | |Operating Expense (sched. XII)|625,077. 85 |643,830. 8 |663,145. 09 |683,039. 44 |703,530. 63 | |Depreciation (sched. I) | |20,806. 00 |20,806. 00 |20,806. 00 |20,806. 00 | |Earnings Before Income Tax |P 783,092. 15 |P1,432,177. 82 |P1,882,085. 05 |P2,066,300. 66 |P2,520,126. 93 | |Tax |274,082. 25 |501,262. 24 |658,729. 7 |723,205. 23 |882,044. 43 | |Net Income |P 509,009. 90 |P927,724. 56 |P1,223,355. 30 |P1,343,095. 43 |P1,638,082. 50 | | | |Assumptions = 3 % Operating Expense per annum | | | |1 % Salary per annum | Wedlock Trend Dress Shoppe | |Projection Cash Flows Statement | |For the 1st year until 5th year | |Cash Receipts |Pre-Operating |2014 |2015 |2016 |2017 |2018 | |Capt. Contribution |P 2,500,000. 00 | | | | | | |Sales (sched. XI) |- |P1,754,400. 0 |P2,418,600. 00 |P2,891,040. 00 |P3,098,400. 00 |P3,576,000. 00 | | | |TOTAL |P2, 500,000. 00 |P1,754,400. 00 |P2,418,600. 00 |P2,891,040. 00 |P3,098,400. 00 |P3,576,000. 00 | |Cash Disbursement | | | | | | | |Capital Expenditure |P 133,181. 0 | | | | | | |Direct Expense |27,630. 00 | | | | | | |Salary (sched. VIII) |- |318,600. 00 |321,786. 00 |325,003. 86 |328,253. 90 |331,536. 44 | |Operating Expense (sched. XII) |- |625,077. 85 |643,830. 8 |663,145. 09 |683,039. 44 |703,530. 63 | |Tax |- | |274,082. 25 |501,262. 24 |658,729. 77 |723,205. 23 | |Profit |- |P 509,009. 90 |P927,724. 56 |P1,223,355. 30 |P1,343,095. 43 |P1,638,082. 50 | |Total |P160,811. 50 |P1,452,687. 75 |P2,167,422. 99 |P2,712,796. 49 |P3,01 3,118. 4 |P3,396,354. 80 | |Net Cash Flow |P2,339,188. 50 |P 301,712. 25 |P 251,177. 01 |P 178,243. 51 |P 85,281. 46 |P 179,645. 20 | |Net Cash Flow Beg. |- |2,339,188. 50 |2,640,900. 75 |2,892,077. 76 |3,070,321. 27 |3,155,602. 73 | |Cash Balance Beg. |P2,339,188. 50 |P2,640,900. 75 |P2,892,077. 76 |P3,070,321. 27 |P3,155,602. 73 |P3,335,247. 93 | Wedlock Trend Dress Shoppe | |Project Balance Sheet | |For the 1st year until 5th year | | |2014 |2015 |2016 |2017 |2018 | |Asset | | | | | | |Cash |P2,640,900. 75 |P2,892,077. 76 |P3,070,321. 27 |P3,155,602. 73 |P3,335,247. 93 | |Furniture and Fixture |45,880. 00 |42,500. 00 |39,120. 00 |35,740. 00 |32,360. 00 | |(sched.I) | | | | | | |Equipment (sched. II) |87,301. 50 |66,684. 48 |49,288. 50 |31,862. 50 |11,436. 50 | |Total Assets |P 2,774,082. 25 |P 3,001,262. 24 |P3,158,729. 77 |P3,223,205. 23 |P3,382,044. 43 | | | |Liabilities & Capital | |Capital |P 2,500,000. 0 |P 2,500,000. 00 |P 2,500,000. 00 |P 2,500,000. 00 |P 2,500,000. 00 | | Taxation |274,082. 25 |501,262. 24 |658,729. 77 |723,205. 23 |882,044. 43 | |TOTAL |P 2,774,082. 25 |P 3,001,262. 24 |P3,158,729. 77 |P3,223,205. 23 |P3,382,044. 43 | Wedlock Trends : 4 partners and Capital Contribution of each is : Partner 1; P 625, 000. 0 Partner 2; P 625, 000. 00 Partner 3; P 625, 000. 00 Partner 4; P 625, 000. 00 Ratio Analysis |Profitability | | | |Average Net Income |P1,128,253. 54 |41. 06% |The profit ratio is 41. 06%, means that for every peso of sales, there is | | | | |a net profit of P. 41. | Average Net Sale |P2,747,688. 00 | | | | | |Average Net Income |P1,128,253. 54 |45. 13% |The ratio is 45. 13%, means that for every peso of sales, there is a net | | | | |profit of P. 45. | |Owners Equity |P 2,500,000. 0 | | | | | |Average Net Profit |P1,128,253. 54 |36. 30% |The contribution of total assets to the net profit is 36. 30% for every | | | | |peso worth of asset it has a profit of P. 36. | |Average Total Asset |P 3,107,864. 8 | | | | | |Liquidity | | | |Average Current Asset |P3,006,830. 09 |494. 65% |The liquidity ratio is 494. 65% or a peso of current liability is | | | | |supported by P 4. 94 or 5 worth of the current assets | |Average Current Liabilities |P 607,864. 8 | | | | | |Pay Back Capital | | | |Parnership Capital |P 2,500,000. 00 |2. 22 |The capital can be recovered within 2 years of appreciation which is | | | | |favorable. | |Average Net Income |P1,128,253. 54 | | | Schedules Schedule I – Furniture and Fixture Furniture and Fixture | |Particular |Quantity |Price |Life |Acquisition Vale |Annual Depreciation | |Sofa Set |1 |P 28,895. 00 |5 |P 28,895. 00 |P 5,779. 00 | |Office Table w/ Chair |1 |7,700. 00 |5 |7,700. 00 |1540. 00 | |Full Length Mirror |1 |2,300. 00 |5 |2,300. 00 |460. 00 | |Full Length Mirror |2 |1,600. 0 |- |3,200. 00 |- | |Plastic Chair/Monobloc |6 |390. 00 |- |2,340. 00 |- | |Jacket Stand |1 |995. 00 |- |995. 00 |- | |Umbrella |1 |450. 00 |- |450. 00 |- | |TOTAL | | | |P45,880. 00 | P 7,779. 00 | Schedule II – Equipment Equipment