Rocky Mountain Caf

Confidential Information - Not for Disclosure

Coffee Service Centers

Note - These are projections based on assumptions, actual results may vary based on performance

List of Assumptions
1. Marketing Assumptions
Number of Operating Days / Month
Number of Cups Sold / Day (Month 1)
Selling Price / Cup (PhP)
COGS / Cup (PhP)
Yearly Price Increase
Credit Terms to Buyers

30
30
15.00
4.00
8%
0
FINANCIAL ANALYSIS

2. Financial Assumptions
Yearly Cost Increase
Royalty Fees
Corporate Income Tax
Exchange Rate US$-PhP
Inflation
Interest Rate

7%
5%
35%
42
7%
12%

Net Present Value

Internal Rate of Return
Payback Period in Years

54,499,181
134%
1.22

ABC Corporation
Service Centers
Total Number of Cups Sold
Revenues
Royalties
Cost of Goods Sold
Gross Income
Gross Profit Margin
Fix Costs
Net Profits before Taxes
Net Profit Margin
Taxes
Net Profits After Taxes
Initial Investment @ Year 1
Cummulative NPBT - 10 Years
Cummulative NPAT - 10 Years
Payback (months)
Internal Rate of Return

1
774,000
10,057,500
2,682,000
7,375,500
73%
1,811,400
5,564,100
55%
834,615
4,729,485
4,733,999
352,785,993
299,868,094
1.22
134%

2
1,134,000
18,200,700
4,853,520
13,347,180
73%
2,021,610
11,325,570
62%
1,698,836
9,626,735

3
1,494,000
25,657,209
6,841,922
18,815,287
73%
2,516,735
16,298,552
64%
2,444,783
13,853,769

4
1,854,000
34,068,446
9,084,919
24,983,527
73%
3,038,118
21,945,409
64%
3,291,811
18,653,598

5
2,214,000
43,531,535
11,608,409
31,923,126
73%
3,587,178
28,335,948
65%
4,250,392
24,085,556

6
2,574,000
54,152,522
14,440,673
39,711,850
73%
4,165,412
35,546,438
66%
5,331,966
30,214,472

7
2,934,000
66,047,143
17,612,571
48,434,571
73%
4,774,398
43,660,174
66%
6,549,026
37,111,148

8
3,294,000
79,341,663
21,157,777
58,183,886
73%
5,415,802
52,768,084
67%
7,915,213
44,852,871

9
3,654,000
94,173,785
25,113,009
69,060,775
73%
6,091,384
62,969,391
67%
9,445,409
53,523,982

10
4,014,000
110,693,629
29,518,301
81,175,328
73%
6,803,000
74,372,328
67%
11,155,849
63,216,479

ABC Corporation
Service Centers
Financing Structure
RMC Investment Component
Saeco Royal Coffee Machines
Saeco Steel Manual Espresso
Necta Colibri Automatic Espresso
Bunn Airpot Kit (1 Brewer + 2 Air Pots)
VKI Piccolina Coffee Machines
RMC Black Base Cabinet
RMC Water Pump
RMC Water Filter
RMC Condiment Racks
RMC Waste Basket
RMC Franchise Fee
Exclusive Territory for 10 Years
RMC Technical & Marketing Training Program
RMC Technical & Marketing Support Program
RMC Monitoring Program

28
0
1
4
10
10
10
10
10
10
1
1
1
1
1

75,000
250,000
266,666
71,000
133,333

PHP
2,100,000
266,666
284,000
1,333,333

750,000

750,000

3,983,999
92,651

43
Average

4,733,999
SOURCES OF CAPITAL
Equity
Debt

Loan Amortization (US$)

Principal
Monhtly Amortization
Balance to Pay
Interest expenses
Monthly Payment

PHP
4,733,999
4,733,999

100%
0%

Month

PhP

2
-

3
-

4
-

5
-

6
-

7
-

8
-

9
-

10
-

11
-

12
-

TOTAL
-

ABC Corporation
Service Centers
Operating Expenses
Inflation
Description

7%

Space Rental
Space rental

Per m2

Quantity/
Allocation
100
1

Monthly Factor
100.00
10,000

Annually
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

12

120,000
120,000

128,400
128,400

137,388
137,388

147,005
147,005

157,296
157,296

168,306
168,306

180,088
180,088

192,694
192,694

206,182
206,182

220,615
220,615

Telecommunications
Main Line
Cell Phone

1
2

800
350
1,150

12
12

9,600
8,400
18,000

10,272
8,988
19,260

10,991
9,617
20,608

11,760
10,290
22,051

12,584
11,011
23,594

13,464
11,781
25,246

14,407
12,606
27,013

15,416
13,489
28,904

16,495
14,433
30,927

17,649
15,443
33,092

1
1

5,000
10,000

12
12

60,000
120,000
180,000

64,200
128,400
192,600

68,694
137,388
206,082

73,503
147,005
220,508

78,648
157,296
235,943

84,153
168,306
252,459

90,044
180,088
270,131

96,347
192,694
289,041

103,091
206,182
309,274

110,308
220,615
330,923

1
1

10,000
20,000

13
13

130,000
260,000
390,000

139,100
278,200
417,300

148,837
297,674
446,511

159,256
318,511
477,767

170,403
340,807
511,210

182,332
364,663
546,995

195,095
390,190
585,285

208,752
417,503
626,255

223,364
446,728
670,093

239,000
477,999
716,999

1
1

10,000
5,000

12
12

120,000
60,000
180,000

128,400
64,200
192,600

137,388
68,694
206,082

147,005
73,503
220,508

157,296
78,648
235,943

168,306
84,153
252,459

180,088
90,044
270,131

192,694
96,347
289,041

206,182
103,091
309,274

220,615
110,308
330,923

1
1

25,000
50,000

13
1

325,000
50,000
375,000

347,750
53,500
401,250

372,093
57,245
429,338

398,139
61,252
459,391

426,009
65,540
491,549

455,829
70,128
525,957

487,737
75,037
562,774

521,879
80,289
602,168

558,411
85,909
644,320

597,499
91,923
689,422

1,263,000
105,250

1,351,410
112,618

1,446,009
120,501

1,547,229
128,936

1,655,535
137,961

1,771,423
147,619

1,895,422
157,952

2,028,102
169,009

2,170,069
180,839

2,321,974
193,498

Utility Services
Electricity
Gazoline
Salaries and Benefits
Technician & Router
Marketing
Marketing & Office Supplies
Marketing Material
Office Supplies
Professional Services
Accounting
Auditing Services

Yearly
Monthly

ABC Corporation
Service Centers
AMORTIZATION EXPENSE
PhP
Project Set-up and Technology Transfer Cost
RMC Franchise Fee
RMC Technical & Marketing Training Program
RMC Technical & Marketing Support Program
RMC Monitoring Program
Accum. Ammortization
NET BOOK VALUE

750,000
-

Amortization
Period
10
10
10
10

Year 1

Year 2

Year 3

Year 4

AMORTIZATION EXPENSE
Year 5
Year 6

Year 7

Year 8

Year 9

Year 10

75,000
75,000
75,000

75,000
75,000
75,000

75,000
75,000
75,000

75,000
75,000
75,000

75,000
75,000
75,000

75,000
75,000
75,000

75,000
75,000
75,000

75,000
75,000
75,000

75,000
75,000
75,000

75,000
75,000
75,000

(75,000)

(75,000)

(75,000)

(75,000)

(75,000)

(75,000)

(75,000)

(75,000)

(75,000)

(75,000)

ABC Corporation
Service Centers
SCHEDULE OF PROPERTY & EQUIPT. & DEPRECIATION
Inflation Rate
COSTS
VKI Piccolina Coffee Machines
Total Acquisitions for the year
Total Cummulative Acquisitions

DEPRECIATION EXPENSE
VKI Piccolina Coffee Machines
New Machine Investments

Total Depreciation expense

Accum. Depreciation
NET BOOK VALUE

Qty.
1

Unit Cost
PhP
4,733,999

Useful Lives
10

Total Costs
Yr. 0
4,733,999
4,733,999
4,733,999

Total Costs
4,733,999
4,000,000
4,200,000
4,410,000
4,630,500
4,862,025
5,105,126
5,360,383
5,628,402
5,909,822
6,205,313
55,045,569

1.07

1.14

1.23

1.31

1.40

1.50

1.61

1.72

1.84

Year 1
4,000,000
4,000,000
8,733,999

Year 2
4,200,000
4,200,000
12,933,999

Year 3
4,410,000
4,410,000
17,343,999

Year 4
4,630,500
4,630,500
21,974,499

Year 5
4,862,025
4,862,025
26,836,524

Year 6
5,105,126
5,105,126
31,941,651

Year 7
5,360,383
5,360,383
37,302,033

Year 8
5,628,402
5,628,402
42,930,435

Year 9
5,909,822
5,909,822
48,840,257

Year 10
6,205,313
6,205,313
55,045,569

473,400

473,400
400,000

473,400
400,000
420,000

473,400
400,000
420,000
441,000

473,400
400,000
420,000
441,000
463,050

473,400
400,000
420,000
441,000
463,050
486,203

473,400
400,000
420,000
441,000
463,050
486,203
510,513

473,400
400,000
420,000
441,000
463,050
486,203
510,513
536,038

473,400
400,000
420,000
441,000
463,050
486,203
510,513
536,038
562,840

473,400
400,000
420,000
441,000
463,050
486,203
510,513
536,038
562,840
590,982

473,400
473,400
8,260,599

873,400
1,346,800
11,587,199

1,293,400
2,640,200
14,703,800

1,734,400
4,374,600
17,599,900

2,197,450
6,572,050
20,264,475

2,683,652
9,255,702
22,685,948

3,194,165
12,449,867
24,852,166

3,730,203
16,180,070
26,750,364

4,293,043
20,473,114
28,367,143

4,884,026
25,357,140
29,688,430

ABC Corporation
Service Centers
Income and Expense Statement
Revenue from Coffee Services
Number of Coffee Stations
0
Number of Operating Days / Month
Growth
Cup Solds / Days
0
Total Number of Cups Sold per Month
Selling Price / Cup
15.00
Income Before Royalties
PHP
Payment of Royalties
0%
Income After Royalties

Month 1
January
10
30
50
15,000
15.00
225,000
225,000

Month 2
February
20
30
50
30,000
15.00
450,000
450,000

Month 3
March
30
30
50
45,000
15.00
675,000
675,000

Month 4
April
43
30
50
64,500
15.00
967,500
967,500

Month 5
May
43
30
50
64,500
15.00
967,500
967,500

Month 6
June
43
30
50
64,500
15.00
967,500
967,500

Month 7
July
43
30
50
64,500
15.00
967,500
967,500

Month 8
August
43
30
50
64,500
15.00
967,500
967,500

Month 9
September
43
30
50
64,500
15.00
967,500
967,500

Revenue from We Deliver Franchises

Number of Coffee Stations
Number of Operating Days / Month
Growth
Cup Solds / Days
0
Total Number of Cups Sold per Month
Selling Price / Cup
10.00
Income Before Royalties
PHP
Collection of Royalties
5%
Income After Royalties

30
100
10.00
-

30
100
10.00
-

30
100
10.00
-

30
100
10.00
-

30
100
10.00
-

30
100
10.00
-

30
100
10.00
-

30
100
10.00
-

30
100
10.00
-

Total Income After Royalties

225,000

450,000

675,000

967,500

967,500

967,500

967,500

967,500

967,500

Cost of Goods Sold

Cost / Cup
Total Cost of Good Sold
Gross Income
Gross Profit Margin

4.0
PHP

PHP

Fix Costs
Space Rental
Telecommunications
Electricity
Gazoline
Salaries & Benefits
Marketing & Office Supplies
Professional Services

Operating Income
Add(deduct) Other Income (Expenses)
Capital & Interest Fees
Net Income Before Tax
Income Tax
0%

Net Income After Tax

Net Profit Margin

PHP

Month 10
October
43
30
50
64,500
15.00
967,500
967,500

Month 11
November
43
30
50
64,500
15.00
967,500
967,500

30
100
-

Month 12
December
43
30
50
64,500
15.00
967,500
967,500

30
100
-

TOTAL

670,500
10,057,500
10,057,500

30
100
-

10.00
-

10.00
-

10.00
-

967,500

967,500

967,500

4.00
60,000

4.00
120,000

4.00
180,000

4.00
258,000

4.00
258,000

4.00
258,000

4.00
258,000

4.00
258,000

4.00
258,000

4.00
258,000

4.00
258,000

4.00
258,000

165,000
73%

330,000
73%

495,000
73%

709,500
73%

709,500
73%

709,500
73%

709,500
73%

709,500
73%

709,500
73%

709,500
73%

709,500
73%

709,500
73%

10,057,500

2,682,000
7,375,500
73%

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

10,000
1,500
5,000
10,000
32,500
15,000
31,250
105,250

120,000
18,000
60,000
120,000
390,000
180,000
375,000
1,263,000

59,750

224,750

389,750

604,250

604,250

604,250

604,250

604,250

604,250

604,250

604,250

604,250

6,112,500

224,750
0

389,750
0

604,250
0

604,250
0

604,250
0

604,250
0

604,250
0

604,250
0

604,250
0

604,250
0

604,250
0

6,112,500

224,750

389,750

604,250

604,250

604,250

604,250

604,250

604,250

604,250

6,112,500

50%

58%

62%

62%

62%

62%

62%

62%

59,750
0

59,750
27%

604,250
62%

604,250
62%

62%

Collection of Receivables
Revenues
Add: Accounts Receivable, Beg.
Total
Accounts Receivable,End
Collection of Receivables

225,000
225,000
225,000

450,000
450,000
450,000

675,000
675,000
675,000

967,500
967,500
967,500

967,500
967,500
967,500

967,500
967,500
967,500

967,500
967,500
967,500

967,500
967,500
967,500

967,500
967,500
967,500

967,500
967,500
967,500

967,500
967,500
967,500

967,500
967,500
967,500

Payment of Expenses
Total Expenses
119,000
Less: Non-cash Expenses
Cash Expenses
119,000
Add: Accounts Payable, Beg. Bal.
Total
119,000
Less: Accounts Payable, End - 1 mo.of professional fees Payment of Expenses
119,000

179,000
179,000
179,000
179,000

239,000
239,000
239,000
239,000

317,000
317,000
317,000
317,000

317,000
317,000
317,000
317,000

317,000
317,000
317,000
317,000

317,000
317,000
317,000
317,000

317,000
317,000
317,000
317,000

317,000
317,000
317,000
317,000

317,000
317,000
317,000
317,000

317,000
317,000
317,000
317,000

317,000
317,000
317,000
317,000

ABC Corporation

Year 1
Revenue from Coffee Services
Number of Coffee Stations
20
Number of Operating Days / Month
Growth
Cup Solds / Days
0
Total Number of Cups Sold / Year
Selling Price / Cup
15.00
Income Before Royalties
Payment of Royalties
0%

Revenue from We Deliver Franchises

Number of Coffee Stations
Number of Operating Days / Month
Cup Solds / Days
Total Number of Cups Sold / Year
Selling Price / Cup
10.00
Income Before Royalties
Collection of Royalties
5%

Total Income After Royalties

Cost of Goods Sold
Yearly Cost Increase
Cost / Cup
Total Cost of Good Sold

7%
4.00

Gross Income
Gross Profit Margin

Year 2
43

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

TOTAL

50
774,000
15.00
10,057,500
10,057,500

63
30
50
1,134,000
16.05
18,200,700
18,200,700

83
30
50
1,494,000
17.17
25,657,209
25,657,209

103
30
50
1,854,000
18.38
34,068,446
34,068,446

123
30
50
2,214,000
19.66
43,531,535
43,531,535

143
30
50
2,574,000
21.04
54,152,522
54,152,522

163
30
50
2,934,000
22.51
66,047,143
66,047,143

183
30
50
3,294,000
24.09
79,341,663
79,341,663

203
30
50
3,654,000
25.77
94,173,785
94,173,785

223
30
50
4,014,000
27.58
110,693,629
110,693,629

30
100
10.00
-

30
100
10.70
-

30
100
11.45
-

30
100
12.25
-

30
100
13.11
-

30
100
14.03
-

30
100
15.01
-

30
100
16.06
-

30
100
17.18
-

30
100
18.38
-

10,057,500

18,200,700

25,657,209

34,068,446

43,531,535

54,152,522

66,047,143

79,341,663

94,173,785

110,693,629

30

4.00
2,682,000

4.28
4,853,520

4.58
6,841,922

4.90
9,084,919

5.24
11,608,409

5.61
14,440,673

6.00
17,612,571

6.42
21,157,777

6.87
25,113,009

7.35
29,518,301

7,375,500
73%

13,347,180
73%

18,815,287
73%

24,983,527
73%

31,923,126
73%

39,711,850
73%

48,434,571
73%

58,183,886
73%

69,060,775
73%

81,175,328
73%

535,924,132
535,924,132

535,924,132

142,913,102
393,011,030

Fix Costs
Space Rental
Telecommunications
Electricity
Gazoline
Salaries & Benefits
Marketing & Office Supplies
Professional Services
Amortization
Depreciation
Total Fix Costs

120,000
18,000
60,000
120,000
390,000
180,000
375,000
75,000
473,400
1,811,400

128,400
19,260
64,200
128,400
139,100
192,600
401,250
75,000
873,400
2,021,610

137,388
20,608
68,694
137,388
148,837
206,082
429,338
75,000
1,293,400
2,516,735

147,005
22,051
73,503
147,005
159,256
220,508
459,391
75,000
1,734,400
3,038,118

157,296
23,594
78,648
157,296
170,403
235,943
491,549
75,000
2,197,450
3,587,178

168,306
25,246
84,153
168,306
182,332
252,459
525,957
75,000
2,683,652
4,165,412

180,088
27,013
90,044
180,088
195,095
270,131
562,774
75,000
3,194,165
4,774,398

192,694
28,904
96,347
192,694
208,752
289,041
602,168
75,000
3,730,203
5,415,802

206,182
30,927
103,091
206,182
223,364
309,274
644,320
75,000
4,293,043
6,091,384

220,615
33,092
110,308
220,615
239,000
330,923
689,422
75,000
4,884,026
6,803,000

40,225,037

Net Income Before Investment

5,564,100

11,325,570

16,298,552

21,945,409

28,335,948

35,546,438

43,660,174

52,768,084

62,969,391

74,372,328

352,785,993

4,000,000
-

4,200,000
-

4,410,000
-

4,630,500
-

4,862,025
-

5,105,126
-

5,360,383
-

5,628,402
-

5,909,822
-

6,205,313
-

50,311,570

Payment of Loan Principal

Payment of Loan Interest

302,474,423

Net Income After Investment

Corporate Taxes

1,564,100

7,125,570

11,888,552

17,314,909

23,473,923

30,441,312

38,299,791

47,139,682

57,059,569

68,167,015

30%

469,230

2,137,671

3,566,566

5,194,473

7,042,177

9,132,393

11,489,937

14,141,905

17,117,871

20,450,104

Net Income After Taxes

PhP

1,094,870

4,987,899

8,321,986

12,120,436

16,431,746

21,308,918

26,809,854

32,997,778

39,941,699

47,716,910

1,094,870

6,082,769

14,404,755

26,525,192

42,956,938

64,265,856

91,075,710

124,073,487

164,015,186

211,732,096

Retained Earnings

Net Profit Margin (incl investment)

Net Profit + Depreciation + Amortization
Net Profit Margin ++

11%
2,112,500
21%

27%
8,073,970
44%

32%
13,256,952
52%

36%
19,124,309
56%

38%
25,746,373
59%

39%
33,199,964
61%

41%
41,568,956
63%

42%
50,944,886
64%

42%
61,427,613
65%

43%
73,126,041
66%

211,732,096

328,581,563

Net Profit (without investment)

Revenues
Add: Accounts Receivable, Beg.
Total
Accounts Receivable,End
Collection of Receivables

Total Expenses
Less: Non-cash Expenses
Cash Expenses
Add: Accounts Payable, Beg. Bal.
Total
Less: Accounts Payable, End

55%

62%

64%

64%

65%

10,057,500
10,057,500
10,057,500

18,200,700
18,200,700
18,200,700

25,657,209
25,657,209
25,657,209

34,068,446
34,068,446
34,068,446

43,531,535
43,531,535
43,531,535

4,493,400
548,400
3,945,000
3,945,000
828,000

6,875,130
948,400
5,926,730
828,000
6,754,730
1,351,410

9,358,657
1,368,400
7,990,257
1,351,410
9,341,667
1,446,009

12,123,037
1,809,400
10,313,637
1,446,009
11,759,646
1,547,229

15,195,588
2,272,450
12,923,138
1,547,229
14,470,367
1,655,535

1.41
0

66%

66%

67%

67%

67%

54,152,522
54,152,522
54,152,522

66,047,143
66,047,143
66,047,143

79,341,663
79,341,663
79,341,663

94,173,785
94,173,785
94,173,785

110,693,629
110,693,629
110,693,629

18,606,084
2,758,652
15,847,432
1,655,535
17,502,967
1,771,423

22,386,969
3,269,165
19,117,804
1,771,423
20,889,227
1,895,422

26,573,579
3,805,203
22,768,376
1,895,422
24,663,798
2,028,102

31,204,393
4,368,043
26,836,350
2,028,102
28,864,452
2,170,069

36,321,301
4,959,026
31,362,276
2,170,069
33,532,345
2,321,974

Payment of Expenses

3,117,000

5,403,320

7,895,658

10,212,416

12,814,832

15,731,545

18,993,804

22,635,696

26,694,383

31,210,371

ABC Corporation
Service Centers
Balance Sheet
Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

84,875,374
84,875,374

117,435,937
117,435,937

157,023,564
157,023,564

204,451,240
204,451,240

260,611,314
260,611,314

21,974,499

26,836,524

31,941,651

37,302,033

42,930,435

48,840,257

17,343,999
(4,374,600)
12,969,400

21,974,499
(6,572,050)
15,402,450

26,836,524
(9,255,702)
17,580,822

31,941,651
(12,449,867)
19,491,783

37,302,033
(16,180,070)
21,121,963

42,930,435
(20,473,114)
22,457,321

48,840,257
(25,357,140)
23,483,117

(300,000)

(375,000)

(450,000)

(525,000)

(600,000)

(675,000)

(750,000)

Assets
Short Term Assets
Cash
Receivables
Total Other Current Assets

2,940,500
2,940,500

11,068,650
11,068,650

22,282,530
22,282,530

37,941,493
37,941,493

58,601,699
58,601,699

Property and Equipment

VKI Piccolina Coffee Machines

4,733,999

8,733,999

12,933,999

17,343,999

Total
Less: Accum. Depreciation
Net

4,733,999
(473,400)
4,260,599

8,733,999
(1,346,800)
7,387,199

12,933,999
(2,640,200)
10,293,800

(75,000)

(150,000)

(225,000)

Pre-operating Expenses (Net)

Total Assets

Year 10

7,126,099

18,305,849

32,351,329

50,610,893

73,629,149

102,006,196

136,402,720

177,545,527

226,233,560

283,344,431

Liabilities & Shareholder Equity

Liabilities
Accounts Payable
Income Tax Payable
Total Current Liabilities
Bank Loan
Total Liabilites

828,000
469,230
1,297,230
1,297,230

1,351,410
2,137,671
3,489,081
3,489,081

1,446,009
3,566,566
5,012,574
5,012,574

1,547,229
5,194,473
6,741,702
6,741,702

1,655,535
7,042,177
8,697,712
8,697,712

1,771,423
9,132,393
10,903,816
10,903,816

1,895,422
11,489,937
13,385,360
13,385,360

2,028,102
14,141,905
16,170,007
16,170,007

2,170,069
17,117,871
19,287,940
19,287,940

2,321,974
20,450,104
22,772,078
22,772,078

Shareholder Equity
Capital Stock
Retained Earnings
Total Shareholders' Equity

4,733,999
1,094,870
5,828,869

8,733,999
6,082,769
14,816,768

12,933,999
14,404,755
27,338,755

17,343,999
26,525,192
43,869,191

21,974,499
42,956,938
64,931,437

26,836,524
64,265,856
91,102,380

31,941,651
91,075,710
123,017,360

37,302,033
124,073,487
161,375,520

42,930,435
164,015,186
206,945,620

48,840,257
211,732,096
260,572,353

7,126,099

18,305,849

32,351,329

50,610,893

73,629,149

102,006,196

136,402,720

177,545,527

226,233,560

283,344,431

Total Liabilities and Equity

DIFFERENCE

ABC Corporation
Service Centers
PROJECTED CASH FLOWS STATEMENTS (PHP)

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

10,057,500
(3,117,000)
6,940,500

18,200,700
(5,403,320)
(469,230)
12,328,150

25,657,209
(7,895,658)
(2,137,671)
15,623,880

34,068,446
(10,212,416)
(3,566,566)
20,289,464

43,531,535
(12,814,832)
(5,194,473)
25,522,231

54,152,522
(15,731,545)
(7,042,177)
31,378,801

66,047,143
(18,993,804)
(9,132,393)
37,920,945

79,341,663
(22,635,696)
(11,489,937)
45,216,029

94,173,785
(26,694,383)
(14,141,905)
53,337,497

110,693,629
(31,210,371)
(17,117,871)
62,365,388

(4,000,000)
(4,000,000)

(4,200,000)
(4,200,000)

(4,410,000)
(4,410,000)

(4,630,500)
(4,630,500)

(4,862,025)
(4,862,025)

(5,105,126)
(5,105,126)

(5,360,383)
(5,360,383)

(5,628,402)
(5,628,402)

(5,909,822)
(5,909,822)

Cash Flows from (to) Operating Activities

Collection of receivables
Payment of expenses
Payment of income tax
Cash Flows from (to) Investing Activities
Acquisition of property and equipment
Payment of pre-operating expenses
Cash Flows from (to) Financing Activities
Capital contribution from stockholders
Proceeds from bank loan
Payment of interest
Payment of principal loan

(4,733,999)
(4,733,999)
4,733,999
4,733,999

(6,205,313)
(6,205,313)

Net Cash Flows

Cash at Beginning of Year

2,940,500
-

8,128,150
2,940,500

11,213,880
11,068,650

15,658,964
22,282,530

20,660,206
37,941,493

26,273,675
58,601,699

32,560,562
84,875,374

39,587,628
117,435,937

47,427,675
157,023,564

56,160,075
204,451,240

Cash at End of Year

2,940,500

11,068,650

22,282,530

37,941,493

58,601,699

84,875,374

117,435,937

157,023,564

204,451,240

260,611,314

2,940,500
(1,793,499)
1.00

8,128,150
6,334,650.65
0.22

11,213,880
-

15,658,964
-

20,660,206
-

26,273,675
-

32,560,562
-

39,587,628
-

47,427,675
-

56,160,075
-

Cash Flows for Financial Analysis

Net Cash Flows
Payback Period

(4,733,999)