The Financial Study

The Financial Study presents the monetary information of the proposed project, the Male Dormitory in USC Talamban Campus. It states whether or not the Uni ersity of San Carlos has the financial capacity to build and operate the dormitory. It presents how much is the capital needed for the project, where to source the capital, the financial performance, total project cost, income statement, cash flow statement, balance sheet, rele ant financial ratios

Monetary Considerations of the Proposed Business

Total Project Cost/ Initial Capital Requirements The three!storey dormitory inside the campus "rounds of the Uni ersity of San Carlos # Talamban Campus contains $% rooms which can occupy up to & boarders in each room. 't (%%) occupancy rate, there will be (*% students within the buildin". +ach room contains & beds, & des,s, & internet connection soc,ets, an air conditioner, a closet and a bathroom. The area of each floor is --. s/uare meter. The Total Project Cost: Cost of 0and .,2-$,%%%.%% 0and Impro ements 31ar,in" 'rea4 .%%,%%%.%% Cost of 5uildin" *.,%%%,%%%.%% Furnitures and Fi6tures for the $% rooms in the second and third floors *,%7%,%%%.%% 3$% rooms at .(,.%% per room4 0obby and "ym e/uipments (,.%%,%%%.%% 'irconditionin" Units 3$2 units 6 *%,%%% per unit4 8$%,%%%.%% Total 1roject Cost &.,2-$,%%%.%% 1

Source of Financing:

The total project cost amounted to 1hp &.,2-$,%%%.%%. Since USC already has an a ailable lot for the location of the dormitory, the cost of land will be disre"arded for the source of financin" analysis. 9hat will be considered as the rele ant cost for this project is only 1 &%,%%%,%%%.%%, the cost that will entail actual capital outflow of cash. Funds for the construction of the dormitory will be sourced from a ban, loan of 1 *(,%%%,%%%.%%. The said loan is assumed to be payable for *% years at a fi6ed rate of interest, possibly ran"in" from 2!8). The loan will be secured by the property itself. The uni ersity will assume &%) e/uity from internal fundin" for the proposed project. Financial 'ssumptions:

5ased on the Mar,etin" study, rent will be char"ed at 17,%%% per student per month. ;ent is assumed to increase by (%) e ery & years to co er inflation or other economic contin"encies that may happen throu"hout operation. Salaries are assumed to increase by .) e ery year. Utilities +6pense, Cleanin", Internet Connection, Share of Common +6penses and other e6penses are assumed to increase by &) e ery year. The Uni ersity of San Carlos owns the land and will finance &%) of the project<s pre! operatin" capital for 8 million. USC will also be pro idin" an additional * million for the wor,in" capital of the project. The buildin" will be completed by the end of *%(%, therefore operations be"in by =anuary *%((. Useful life of the par,in" area and the buildin" is *% years. For the furnitures and fi6tures, and other e/uipments, its useful life is (% years. 't the end of year (%, all e/uipments and furnitures will be retired and will be replaced with new ones entailin" additional capital outlay amountin" to 1 .,.2.,%%%.%%. From the Mar,et study, it will be assumed that the occupancy rate will be at -%) in *%((, -.) in *%(*, 8%) in *%(&, 8.) in *%($ and (%%) in years *%(. to *%*8.

Supportin" Schedules: Total cost of financing the project: 000,000.00 1roject will be financed as follows: Financin" from 5an, 0oan 32%)4 *(,%%%,%%%.%% P 30,

From Internal Financin" of USC 3&%)4 8,%%%,%%%.%% 'dditional Internal Financin" for 9or,in" Capital *,%%%,%%%.%% Total 0iabilities and +/uity # be"innin" balance &*,%%%,%%%.%%

Schedule of Salaries per Dormitory >ead *%,%%%.%%

onth 1 1 (*%,%%%.%% (7,%%%.%% (*,%%%.%% (7,%%%.%% (7,%%%.%% (7,%%%.%% 1 **(,%%%.%%

7 'ssistant priests 3* priests per floor at (.,%%% per month4 * Security "uards at 1 -%%%.%% per month ( head coo, * assistant coo,s at 1 -,%%%.%% per month * janitors at 1 -,%%%.%% per month * house,eeper assistant at 1 -,%%%.%% per month Total monthly salary ?Salaries is assumed to increase at . percent e ery year

!epreciation "#pense fro

year $ to $0

5uildin" 3*.,%%%,%%%.%% at *% years useful life4 (,*.%,%%%.%% 0and Impro ements 3.%%,%%% at *% years useful life4 *.,%%%.%% Furnitures and Fi6tures 31 *,%7%,%%% at (% years useful life4 *%7,%%%.%% +/uipments 3*,$$%,%%%.%% at (% years useful life4 Total Depreciation *$$,%%%.%% (,2*.,%%%.%%

!epreciation "#pense % year $$ to &0 5uildin" 3*.,%%%,%%%.%% at *% years useful life4

(,*.%,%%%.%% 0and Impro ements 3.%%,%%% at *% years useful life4 *.,%%%.%% Furnitures and Fi6tures 31 *,$%%,%%% at (% years useful life4 *$%,%%%.%% +/uipments 3&,(2.,%%% at (% years useful life4 &(2,.%%.%% Total Depreciation Insurance +6pense assumed at: 1 (%,%%%,%%%.%% total premiums to be paid for *% years payable at 1 .%%,%%% per year for the buildin" insurance. (,-&*,.%%.%%

Share for Common +6penses: 'ccountin" and 'd ertisin" +6penses at 1 *%,%%% for the first year

@ther +6penses: Maintenance and ;epairs, and Miscellaneous +6penses at 1 (.,%%%.%% for the first year

1rocurement at the start of the ((th year: Furnitures and Fi6tures for the $% rooms in the second and third floors *,$%%,%%%.%% 3$% rooms at 1 7%,%%%.%% per room4 0obby and "ym e/uipments 3first floor4 *,%%%,%%%.%% 'irconditionin" Units 3$2 units 6 *.,%%% per unit4 (,(2.,%%%.%% Total Capital @utlay .,.2.,%%%.%%