The Metanoia
Essay by Lunaian48 • March 26, 2017 • Study Guide • 286 Words (2 Pages) • 1,111 Views
Executive Summary
The Metanoia’s is a partnership that will be engaged in the manufacturing and selling of mushroom longganisa. The new business enterprise requires a capital investment of 1,000,000 of which 900,000 will be contributed by three partners (P300,000 each) whom one partner will serve as the managing partner, production manager and financial manager. The remaining 100,000 will be availed through a loan from the bank.
Based on the projected financial statements, the business will be earning 239,558.20 in 2018, 253,015 in 2019, 267,185.8 in 2020, 280,760.2 in 2021 and 294,595 in 2022. In addition, the financial statements analysis obtained favorable results to support the sustainability of the new business enterprise.
With the implementation of this new business enterprise, it is expected to help in improving the local and national economy by providing job opportunities and increase in local and national taxes. Likewise, it will help customers to save more money and at the same time to have a good health.
FINANCIAL ANALYSIS
2018 2019 2020 2021 2022
Current Ratio | 1123306 | 1402768 | 1696707 | 2171165 | 2492369 | |
102667.8 | 108435 | 114508.2 | 120325.8 | 126255 | ||
10.94117 | 12.93649 | 14.81734 | 18.04405 | 19.74076 | ||
Quick Ratio | 176004 | 439787.2 | 717728.2 | 1008798 | 1313510 | |
102667.8 | 108435 | 114508.2 | 120325.8 | 126255 | ||
1.714306 | 4.055768 | 6.26792 | 8.383888 | 10.40363 | ||
Working Capital to assets | 176004 | 439787.2 | 717728.2 | 1008798 | 1313510 | |
1242226 | 1501008 | 1774267 | 2228045 | 2528569 | ||
0.141684 | 0.292995 | 0.404521 | 0.452773 | 0.519468 | ||
Cash Flow Liquidity Ratios | -408392 | 703570.4 | 995669.2 | 1299868 | 1618222 | |
102667.8 | 108435 | 114508.2 | 120325.8 | 126255 | ||
-3.9778 | 6.488407 | 8.695178 | 10.8029 | 12.8171 | ||
Debt Ratio | 102667.8 | 108435 | 114508.2 | 120325.8 | 126255 | |
1242226 | 1501008 | 1774267 | 2228045 | 2528569 | ||
0.082648 | 0.072241 | 0.064538 | 0.054005 | 0.049931 | ||
Equity Ratio | 1139558 | 1392573 | 1659759 | 2107719 | 2402314 | |
1242226 | 1501008 | 1774267 | 2228045 | 2528569 | ||
0.917352 | 0.927759 | 0.935462 | 0.945995 | 0.950069 | ||
Debt to Equity Ratio | 102667.8 | 108435 | 114508.2 | 120325.8 | 126255 | |
1139558 | 1392573 | 1659759 | 2107719 | 2402314 | ||
0.090094 | 0.077867 | 0.068991 | 0.057088 | 0.052556 | ||
Gross Profit Margin | 2135328 | 2168832 | 2202912 | 2237472 | 2272608 | |
12278136 | 12470784 | 12666744 | 12865464 | 13067496 | ||
0.173913 | 0.173913 | 0.173913 | 0.173913 | 0.173913 | ||
Net Profit Margin | 239558.2 | 253015 | 267185.8 | 280760.2 | 294595 | |
12278136 | 12470784 | 12666744 | 12865464 | 13067496 | ||
0.019511 | 0.020289 | 0.021093 | 0.021823 | 0.022544 |
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