AllBestEssays.com - All Best Essays, Term Papers and Book Report
Search

The Total Investment Cost

Essay by   •  February 10, 2019  •  Course Note  •  251 Words (2 Pages)  •  41 Views

Essay Preview: The Total Investment Cost

Report this essay
Page 1 of 2
  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.

Working Capital

Cost (Php)

  Cash

109,215.20

  Prepaid Rent

20,000.00

Total Working Capital

129,215.20

Fixed Assets

  Furniture and Fixtures

18,344.00

  Machines and Equipment

24,494.00

  Leasehold Improvement

23,725.00

Total Fixed Assets

66,563.00

Pre-Operating Expense

  Permits and Licenses

4,221.80

Total Organization Cost

4,221.80

Total Project Cost

200,000.00

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

 

 

2019

2020

2021

2022

2023

SERVICE REVENUE

1,716,975

1,892,940

2,086,950

2,300,895

2,536,792

FIXED COSTS

Rent

120,000

126,000

132,300

138,915

145,861

Utilities

68,706

70,767

72,890

75,077

77,329

Total Fixed Costs

188,706

196,767

205,190

213,992

223,190

...

...

Download as:   txt (2.2 Kb)   pdf (75.5 Kb)   docx (9.9 Kb)  
Continue for 1 more page »
Only available on AllBestEssays.com
Citation Generator

(2019, 02). The Total Investment Cost. AllBestEssays.com. Retrieved 02, 2019, from https://www.allbestessays.com/essay/The-Total-Investment-Cost/71426.html

"The Total Investment Cost" AllBestEssays.com. 02 2019. 2019. 02 2019 <https://www.allbestessays.com/essay/The-Total-Investment-Cost/71426.html>.

"The Total Investment Cost." AllBestEssays.com. AllBestEssays.com, 02 2019. Web. 02 2019. <https://www.allbestessays.com/essay/The-Total-Investment-Cost/71426.html>.

"The Total Investment Cost." AllBestEssays.com. 02, 2019. Accessed 02, 2019. https://www.allbestessays.com/essay/The-Total-Investment-Cost/71426.html.