Projected Financial Statements

The business will be taken care of by the residents of Madlum with us, the ROCKSOLID
Group, acting as their consultants. The money earned from sales during bazaars will be used to
build the Tsambayan Caf in Madlum, as well as provide materials such as kitchenware,
blenders, and the like. After one year of operation, net income will be used to provide the
machinery needed in order for the business to expand to packaged tea bags.
Assumptions applied to the financial projections are as follows:

Daily average sales will be 36 cups, with a 10% annual increase

Wage will be 50% of the profit earned per year to benefit the residents of Madlum
Madlum will have a 0.1% market share in packaged herbal teas in the year 2014,
with a 10% increase in sales the following year
Straight line depreciation is applied for the machinery. Estimated useful life is 3
years with no salvage value.

Revenues - tsaambayan
Revenues - teabags
Total revenues
Cost of sales - tsaambayan
Cost of sales - teabags
Total cost of sales
Gross profit
Operating expense
Rent
Wage
Marketing
Supplies
Utilities
Transporation
Miscellaneous
Total operating expense
Income before depreciation
Depreciation expense
Net income before tax
Tax expense
Net income after tax

Madlum Inc.
Income Statement
2013
195,000.00

76,050.00
118,950.00

2014
214,500.00
323,961.17
538,461.17
83,655.00
60,019.82
143,674.82
394,786.35

2015
235,950.00
356,357.29
592,307.29
92,020.50
66,021.81
158,042.31
434,264.98

59,475.00
8,899.00
1,440.00
2,000.00
71,814.00
47,136.00
1,000.00
46,136.00
16,147.60
29,988.40

197,393.17
5,000.00
14,356.00
1,440.00
2,000.00
220,189.17
174,597.17
18,200.00
156,397.17
54,739.01
101,658.16

217,132.49
5,000.00
14,356.00
1,440.00
2,000.00
239,928.49
194,336.49
18,200.00
176,136.49
61,647.77
114,488.72

195,000.00
76,050.00

Net Profit Margin

15.38%

18.88%

19.33%

Madlum, Inc.
Balance Sheet
Assets
Cash
Inventory
Equipment
Furnitures and fixtures
Supplies
Other assets
Total assets
Liabilities and Equity
Accounts payable
Capital
Retained earnings
Total liabilities and
equity

2013

2014

2015

31,805.65
4,182.75
4,000.00
39,988.40

61,944.45
7,902.12
68,800.00
3,000.00
141,646.56

187,240.77
15,294.51
51,600.00
2,000.00
256,135.28

10,000.00
29,988.40
39,988.40

10,000.00
131,646.56
141,646.56

10,000.00
246,135.28
256,135.28

Madlum, Inc.
Statement of Cash Flows
Operating cash flows
Cash received from customers
Cash paid for inventory
Cash paid for rent
Cash paid for wages
Cash paid for supplies
Cash paid for utilities
Cash paid for transporation
Cash paid for other expenses
Cash paid for taxes
Net operating cash flow
Investing cash flows
Cash paid for equipment
Cash paid for furnitures
Net investing cash flow
Financing cash flows

2013

2014

2015

195,000.00
(80,232.75)

538,461.17
(147,394.19)

592,307.29
(165,434.70)

(59,475.00)
(8,899.00)
(1,440.00)
(2,000.00)
(16,147.60)
26,805.65

(197,393.17)
(5,000.00)
(14,356.00)
(1,440.00)
(2,000.00)
(54,739.01)
116,138.80

(217,132.49)
(5,000.00)
(14,356.00)
(1,440.00)
(2,000.00)
(61,647.77)
125,296.33

(5,000.00)
(5,000.00)

(86,000.00)
(86,000.00)

Capital investment
Net financing cash flow

10,000.00
10,000.00

Net increase in cash

Beginning cash balance
Ending cash balance

31,805.65
31,805.65

30,138.80
31,805.65
61,944.45

125,296.33
61,944.45
187,240.77

Funding Plan
At the start of this venture of Tsaambayan, the group put together money from our own
pockets to serve as capital. Each member provided the sum of Php 3,000 and with that, the group
had a starting capital Php 21,000 to startup the implementation of the business. Over the duration
of the project, the goal was to repay the groups initial investment and then make use of the
income generated by Tsaambayan to continue the operation of the business. The group was even
fortunate enough to obtain a financial grant from the Sanggunian to aid us in our initial
investment and helping establish the Tsaambayans name and reputation, funding the rent and
cost of raw materials. With that, the money from the Sanggunian and the income of Tsambayan,
will be the future financial sources of our plans.
With that said, the money generated from Tsaambayan and the leftovers from the
Sanggunian financial grant, will be used to fund the establishment of Tsaambayan in Madlum,
Bulacan. Income from the caf in the community would then be used for investment on a tea bag
machine that would be needed to implement the long-term strategy, which is to commercialize
the tea bags used in Tsambayan. Also, part of the income coming from the sales of the tea bags
would be used to invest on the planting and harvesting of the raw materials to ensure
sustainability and avoid down times in production.
Statement of sources and uses of funds
Sources of funds:
Tsaambayan, Madlum 2013 net income:
Total

Php 101,140
Php 101,140

Uses of funds:
Equipment (Tea bag machine):
Cost of supplies (filter paper, electricity cost, etc):
Total

Php 86,000
Php 15,140
Php 101,140