Finance

Going Green Consulting Firm

Assumptions

• Accounting Cycle– Gregorian yearly calendar

• Type of Business Organization– Corporation– 6,000 common stock issued to each incorporator,

priced at Php120

Initial Capital Requirements

Initial Capital

• Php 50,000 investment for each incorporator

• Php 5M loan from BDO– 10% interest per annum– to be paid in 6 years

Balance SheetsASSETS = LIABILITIES + EQUITY

MOST LIKELY

2010 41, 755, 952 6, 275, 947 35, 480, 005

2011 65, 363, 964 8, 501, 165 56, 862, 799

2012 177, 488, 476 21, 315, 119 156, 173, 357

OPTIMISTIC

2010 51, 215, 952 6, 364, 947 44, 851, 005

2011 81, 304, 464 9, 807, 696 71, 496, 768

2012 218, 572, 476 25, 868, 744 192, 703, 732

PESSIMISTIC

2010 32, 244, 952 6, 097, 947 26, 147, 005

2011 49, 958, 464 7, 194, 633 42, 763, 831

2012 136, 037, 476 16, 583, 494 119, 453, 982

Financial Analysis

• Return on Investment (ROI)– Most Likely: 115%– Optimistic: 194%– Pessimistic: 57%

• Payback Period– Most Likely: 0.14– Optimistic: 0.11– Pessimistic: 0.19

Financial Ratios

Financial Ratios

Financial Ratios

Financial Ratios