Business Legal Environment and Financials

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Questions and Answers

Who is the supplier of squash in the table?

Rose Chatto

What is the contact number for Bibing Sano?

09973385394

Identify one item supplied by Sayre.

Egg

Where is Rose Chatto located?

Purok 4, Santiago, Asuncion, Davao Del Norte Signup and view all the answers

Which supplier has a contact number starting with 093?

Juni Ganal Signup and view all the answers

What is the common element in the addresses of Rose Chatto and Juni Ganal?

Both are located in Purok 4, Santiago. Signup and view all the answers

What item does Sayre supply that is categorized as a condiment?

Salt Signup and view all the answers

Does the table include any information for the supplier named mabuhay SKL?

No, there is no information provided for mabuhay SKL. Signup and view all the answers

What is the purpose of obtaining a Barangay Clearance for Savory Squash Bites?

It certifies that the company conforms to the barangay regulations where it operates. Signup and view all the answers

Which two documents must Savory Squash Bites secure from the Mayor's Office?

A Barangay Clearance and a Business Permit. Signup and view all the answers

What kind of certification must the business obtain from the Food and Drug Administration (FDA)?

A food registration certificate to ensure product safety. Signup and view all the answers

What guidelines does Savory Squash Bites need to follow to ensure product safety?

Guidelines for labeling, packaging, microbial testing, and sanitary production standards. Signup and view all the answers

Why is it important for Savory Squash Bites to meet the criteria of the Bureau of Fire Protection?

It is necessary to obtain certification for fire safety and compliance. Signup and view all the answers

What is the role of the Bureau of Internal Revenue (BIR) in the operation of Savory Squash Bites?

The business must secure a registration certificate from the BIR. Signup and view all the answers

In context to sanitary production standards, what commitment does Savory Squash Bites make?

The business is committed to maintaining sanitary production standards. Signup and view all the answers

What overall commitment does Savory Squash Bites demonstrate in its operations?

It is committed to meeting all regulatory requirements. Signup and view all the answers

What is the tertiary education degree pursued by both Hepiga and Nizmhar?

Bachelor of Science in Business Administration Major in Financial Management. Signup and view all the answers

What is the age of Nobe Jane L. Mambatalan as of now?

20 years old. Signup and view all the answers

Which elementary school did Nizmhar Decano attend?

Pandulian Elementary School. Signup and view all the answers

What is the birthplace of Hepiga?

Kapalong Davao Del Norte. Signup and view all the answers

Who are the mothers of Nizmhar and Nobe Jane respectively?

Myrna Decano for Nizmhar and Jimelyn L. Mambatalan for Nobe Jane. Signup and view all the answers

What is the projected net income for year 5?

₱227,185.73 Signup and view all the answers

How much are the projected operating expenses in year 1?

₱663,963.72 Signup and view all the answers

What does the statement of changes in owner's equity indicate about the business?

It shows improvement in owner's equity every year, reflecting a solid reputation for potential borrowing. Signup and view all the answers

What is the gross profit projected for year 5?

₱973,737.78 Signup and view all the answers

What is the significance of financial ratios in a business?

Financial ratios indicate the business performance and profitability over time. Signup and view all the answers

What is the projected cost of sales for year 5?

₱1,960,338.72 Signup and view all the answers

How did the net profit ratio change from year 1 to year 3?

It increased from 22.74% in year 1 to 27.16% in year 3. Signup and view all the answers

What does the projected five-year cash flow statement reveal about the company?

It indicates sufficient cash flow and consistent improvement each year. Signup and view all the answers

What was the return on asset percentage in the first year for Savory Squash Bites?

40.28% Signup and view all the answers

How much is allocated for rent expense in the first year?

$60,000 Signup and view all the answers

What is the total cost for furniture and fixtures for the business?

$9,580.00 Signup and view all the answers

What trend can be observed in the return on asset percentages over the five years?

The return on asset percentage steadily decreases each year. Signup and view all the answers

What is the total cost for cooking equipment listed in the projected operating expenses?

$16,000.00 Signup and view all the answers

How much is the projected rent expense for the fifth year?

$64,945 Signup and view all the answers

What was the return on asset percentage in the second year for Savory Squash Bites?

32.77% Signup and view all the answers

What was the total cost for the motorcycle used for delivery?

$60,000.00 Signup and view all the answers

Study Notes

Legal Environment

The business must obtain a Barangay Clearance, Business Permit, and registration certificate from the BIR.
The business will obtain a food registration certificate from the FDA to ensure product safety.
The business must comply with guidelines for labeling, packaging, microbial testing, and maintaining sanitary production standards.

Suppliers

Rose Chatto Medrano supplies squash and her contact number is 09936065864.
Bibing Sano's contact number is 09973385394.
Juni Ganal's contact number is 09351569521.
Sayre supplies eggs, flour, and salt and operates in Maniki, Kapalog, Davao del Norte.
Mabuhay SKL and HB1 are also listed as suppliers.

Five Year Income Statement

The projected income statement shows the business's financial performance and earnings over five years.
Net sales are anticipated to increase from ₱2,413,872.00 in the first year to ₱2,934,076.50 in the fifth year.
Cost of sales is projected to increase from ₱1,612,775.52 in the first year to ₱1,960,338.72 in the fifth year.
Gross profit is anticipated to increase from ₱801,096.48 in the first year to ₱973,737.78 in the fifth year.
Operating expenses are expected to increase from ₱663,963.72 in the first year to ₱706,460.45 in the fifth year.
Net income is projected to increase from ₱137,132.76 in the first year to ₱227,185.73 in the fifth year.

Five Year Statement of Change in Owner's Equity

The statement illustrates the amount of cash the business would have if all assets were liquidated and debts were paid off.
Owner's equity is projected to improve each year, indicating a solid reputation.

Five Year Cash Flow Statement

The projected cash flow statement shows the flow of money into and out of the business.
It shows that the company has enough cash and is improving each year.

Five Year Financial Ratios

Savory Squash Bites' net profit ratio is 22.74% in the first year, indicating a good return on sales.
The net profit ratio steadily increases over the next five years, suggesting the business is operating effectively.

Operating Expenses

Furniture and fixtures expenses are projected to rise from ₱9,580.00 in the first year to ₱10,169.00 in the fifth year.
Rent expense is anticipated to increase from ₱60,000 in the first year to ₱64,945 in the fifth year.

Nizmhar Decano

Holds a Bachelor of Science in Business Administration with a major in Financial Management from Kapalong College of Agriculture, Sciences and Technology.
Has experience in administration and financial management.
Email address is [email protected].

Nobe Jane L.Mambatalan

Has a Bachelor of Science in Business Administration major in Financial Management from Kapalong College of Agriculture, Sciences and Technology.
Possesses knowledge in Business Administration and Financial Management.

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Description

This quiz covers essential topics regarding the legal requirements for starting a business, including necessary permits and certificates. It also explores supplier information and projections for a five-year income statement, highlighting financial performance and sales growth.