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Sephats Tours

Financial Plan


Key Assumptions

The financial plan depends on important assumptions. From the beginning, we recognize that payment terms and hence collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Some of the more important underlying assumptions are:

  • We assume a strong economy, without major recession.
  • We assume, of course, that there are no unforeseen changes in economic policy to make our service immediately obsolete or unwanted.

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year


Use of Funds

Thus far we have purchased a Mercedes Benz mini bus to run tours for our customers, for P167,00, which was purchased with P32,000 down and the rest on a 5-year 6% loan. Other start-up expenses covered include  legal costs, business plan compilation, license costs and related expenses. 


Start-up Expenses

  • Legal P1,000
  • Logo, branding. P500
  • Website, collaterals P700
  • Consultants P1,200
  • Insurance P800
  • Rent P500
  • Other P300


Sources of Funds

We have 2 investors, investor 1 is investing P100,000, investor 2 is investing 102,000. 


Projected Profit & Loss

2020 2021 2022
Gross Margin P352,560 P417,040 P476,320
Operating Expenses
Salaries & Wages P136,800 P163,140 P177,497
Employee Related Expenses P27,360 P32,628 P35,499
Rent P14,400 P14,400 P14,400
Sales and Marketing P101,700 P120,300 P137,400
Insurance P12,000 P12,000 P12,000
Travel P1,800 P1,800 P1,800
Miscellaneous P2,400 P2,400 P2,400
Maintenance P12,000 P12,000 P12,000
Startup Expenses P5,000
Interest Incurred P7,451 P5,978 P4,416
Depreciation and Amortization P16,700 P16,700 P16,700
Gain or Loss from Sale of Assets
Income Taxes P2,242 P5,354 P9,332
Total Expenses P665,293 P771,660 P863,124
Net Profit P12,707 P30,340 P52,876

Projected Balance Sheet

Starting Balances 2020 2021 2022
Cash P25,365 P46,323 P57,282
Accounts Receivable P43,500 P40,100 P45,800
Other Current Assets
Total Current Assets P68,865 P86,423 P103,082
Long-Term Assets P167,000 P167,000 P167,000
Accumulated Depreciation (P16,700) (P33,400) (P50,100)
Total Long-Term Assets P150,300 P133,600 P116,900
Accounts Payable P26,085 P22,827 P25,820
Income Taxes Payable P2,242 P1,360 P2,355
Sales Taxes Payable P0 P0 P0
Short-Term Debt P23,869 P25,342 P26,905 P28,564
Prepaid Revenue
Total Current Liabilities P23,869 P53,669 P51,092 P56,739
Long-Term Debt P111,131 P85,789 P58,885 P30,321
Long-Term Liabilities P111,131 P85,789 P58,885 P30,321
Paid-In Capital P202,000 P202,000 P202,000
Retained Earnings (P135,000) (P135,000) (P122,293) (P121,953)
Earnings P12,707 P30,340 P52,876

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit P12,707 P30,340 P52,876
Depreciation & Amortization P16,700 P16,700 P16,700
Change in Accounts Receivable (P43,500) P3,400 (P5,700)
Change in Inventory
Change in Accounts Payable P26,085 (P3,258) P2,993
Change in Income Tax Payable P2,242 (P882) P995
Change in Sales Tax Payable P0 P0 P0
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold (P167,000)
Investments Received P202,000
Dividends & Distributions (P30,000)
Change in Short-Term Debt P1,472 P1,563 P1,659
Change in Long-Term Debt (P25,342) (P26,905) (P28,564)
Cash at Beginning of Period P0 P25,365 P46,323
Net Change in Cash P25,365 P20,958 P10,959