FINANCIAL STUDY
A. MAJOR ASSUMPTIONS
Sources of Financing
The members of Kolektiva are going to finance the initial capital of the business
using their own money and private financing sources such as family and peers. Each
member will contribute a total of Php 1, 750.00 to achieve the total needed capital of
Php. 7,000.00
Assumptions
The entrepreneurs made the following assumptions in projecting their financial
statements for 5 years.
1. 5% increase in sales every year.
2. Projected Sales are based on the 2-week business implementation
3. Kolektiva Hanging Wall Organizer selling price is still the same
4. A budget of Php 966. 84 will be dedicated for the marketing expense of
Kolektiva for its first year. It will increase annually by 20%.
5. Kolektiva will hire their own sewer and tools for sewing will be acquired.
6. The cost of raw materials will remain unchanged for 5 years.
7.