Financial Maam
Financial Maam
Financial Maam
The business has a total capital of ₱75,000. Ma. Beverly D. Fandiñola has a share of 84%
of the funds, while John Kenneth Bautista has a share of 16% of the total investment.
4.2 Allocation of Capital
The total amount spent on this business was 75,000 pesos; this included all costs for
machinery, equipment, permits, etc., for the successful opening of this business. The machinery
and production equipment acquired the highest cost.
Net Profit/Net loss - 12,078.00 6,143.00 17,009.75 45,110.25 - 1,425.00 40,130.00 39,891.25 16,820.00 151,601.25
Since it was the first month and a lot of money had been spent, September brought in -12,078
PHP, the lowest monthly income for this business; however, the month of December got
45,110.25PHP the highest revenue for this business because it is the month of giving for
occasions like Christmas and New Year's. Some entrepreneurs buy bulk orders of their products
or services.
4.4 Statement of Financial Position (Balance Sheet)
TOTAL ASSET 69,474.00 72,220.00 88,152.50 104,839.00 103,414.00 113,544.00 112,271.50 129,091.50
Owners Equity
Owner's Capital 69,474.00 72,220.00 88,152.50 104,839.00 103,414.00 113,544.00 112,271.50 129,091.50
The table shows that the company has current and non-current assets. The current asset is
the company's inventories and cash end, while the non-current asset is the machinery and
production equipment, which depreciates monthly. After eight months, they had equity worth
PHP129,091.50
.
4.5 Statement of Cash Flow
Net Cash flow from Operating Ac- 11,721.06 6,499.94 17,366.69 45,467.19 - 1,068.06 40,486.94 40,248.19 17,176.94 154,456.81
INVESTING ACTEVITIES
Production Equipment 23,500.00 - - - - - - -
Machineries 30,000.00 - - - - - - -
Net cash flow From Investing Ac- 53,000.00 - - - - - - -- 53,000.00
FINANCING ACTIVITIES
Fandiñola, investment 63,000.00 - - - - - - -
Bautista, Investment 12,000.00 - - - - - - -
Cash paid to owner- widrawal - -- 5,000.00 - 30,000.00 - 30,000.00 - 40,000.00 -
Net Cash flow from Financing Ac 75,000.00 -- 5,000.00 - 30,000.00 -- 30,000.00 - 40,000.00 - -
Total Net Cash Flow 10,278.94 6,499.94 12,366.69 15,467.19 - 1,068.06 10,486.94 248.19 17,176.94
add: Cash, Beg. 10,278.94 16,778.89 29,145.58 44,612.78 43,544.72 54,031.67 54,279.86 71,456.81
The table shows that the business has depreciation, which is the production equipment.
The entrepreneurs assume that the life of their printers is ten years and the life of their machinery
is 15 years. therefore; they calculate the depreciation of each of these items. They include their
withdrawal monthly and after eight months, the people in business have a cash end of
71,456.81PHP.
4.6 Profitability Ratios
Return on Sales
Months
September (82%)
October 287%
November 338%
December 239%
January (175%)
February 302%
March 288%
April 277%
Return on sales is a financial ratio that shows how efficiently a company can generate
operating profit from its revenue. The table above shows the financial ratios of Tee Prints
Fandiñola.
As shown in the table above, September 2022 and January 2023 have no return on sales since the
business incurred a net loss during those months. Eventually, the return on sales of the business
increased in the following months.