PROJECTED STATEMENT OF FINANCIAL PERFORMANCE

The projected statement of financial performance is a component of financial statement that reports the business’
financial performance over a period of time. Rayman Machine Shop prepared a statement of financial performance for a
period of five years.

Technology Upgrading of Rayman Machine Shop

Projected Income Statement

Note Year 1 Year 2 Year 3 Year 4 Year 5

Revenue Note 1 3,141,000 3,298,050 3,462,953 3,636,100 3,817,905

Less: Operating Expense

Direct Material Note 2 314,100 329,805 346,295 363,610 381,791

Direct Labor Note 3 1,099,350 1,154,318 1,212,033 1,272,635 1,336,267

Overhead Expense Note 4 204,000 208,080 212,242 216,486 220,816

Selling and Administrative Expense Note 5 42,000 42,840 43,697 44,571 45,462

Gross Income 1,481,550 1,563,008 1,648,685 1,738,798 1,833,570

Less: Depreciation Note 6 355,014 355,014 355,014 355,014 355,014

Earnings Before Depreciation 1,126,536 1,207,993 1,293,671 1,383,784 1,478,555

Less: Interest Note 7 - - - - -

Taxable Income 1,126,536 1,207,993 1,293,671 1,383,784 1,478,555

 Less: Tax Expense Note 8 301,500 340,260 359,980 388,820 414,140

Net Income 825,036 867,733 933,691 994,964 1,064,415

PROJECTED STATEMENT OF FINANCIAL POSITION

The projected statement of financial performance is a component of financial statement that reports the business’
assets, liabilities and equity at a specific point of time. Rayman Machine Shop prepared a statement of financial position for
a period of five years.

Technology Upgrading of Rayman Machine Shop

Projeted Statement of Financial Position

Pre-Operation Year 1 Year 2 Year 3 Year 4 Year 5

 Assets

Current Assets

Cash 1,659,450 2,249,500 2,882,248 3,580,953 4,930,931 6,350,360

Inventory

Total Current Assets 1,659,450 2,249,500 2,882,248 3,580,953 4,930,931 6,350,360

Non-Current Assets

Machine and Equipments 3,016,100 3,016,100 3,016,100 3,016,100 3,016,100 3,016,100

Less: Depreciation 355,014 710,029 1,065,043 1,420,057 1,775,071

Total Non Current Assets 3,016,100 2,661,086 2,306,071 1,951,057 1,596,043 1,241,029

Total Assets 4,675,550 4,910,586 5,188,319 5,532,010 6,526,974 7,591,389

Liabilities and Owner's Equity

Liabilities

Current Liabilities

Loan Payable 590,000 590,000 590,000

Total Current Liabilities 590,000 590,000 590,000 - - -

Non-Current Liabilities

Loan Payable 1,180,000 590,000 - - -

Total Non Current Liabilities 1,180,000 590,000 - - - -

Total Liabilities 1,770,000 1,180,000 590,000 - - -

Owner's Equity

Proponent's Capital, beg. 1,246,100 1,246,100 2,071,136 2,938,869 3,872,560 4,867,524

Add: Proponent's Investment

Total Capital 1,246,100 1,246,100 2,071,136 2,938,869 3,872,560 4,867,524

Add: Retained Earnings 825,036 867,733 933,691 994,964 1,064,415

Proponent's Capital, end. 1,246,100 2,071,136 2,938,869 3,872,560 4,867,524 5,931,939

Total Liabilities and Equity 3,016,100 3,251,136 3,528,869 3,872,560 4,867,524 5,931,939
PROJECTED STATEMENT OF CASH FLOWS

The projected statement of cash flows is a component of financial statement that reports how changes in statement of
financial position and the net income affect cash. It breaks the analysis down to operating, investing and financing of the
business. Rayman Machine Shop prepared a statement of cash flows for a period of five years.

Technology Upgrading of Rayman Machine Shop

 Projected Statement of Cashflows

Pre-Operation Year 1 Year 2 Year 3 Year 4 Year 5

Cash Inflow

Investment 1,659,450

Loan Amount 1,770,000

Revenue 3,141,000 3,298,050 3,462,953 3,636,100 3,817,905

Total Cash Inflow 3,429,450 3,141,000 3,298,050 3,462,953 3,636,100 3,817,905

Cash Outflow

Fixed Asset Acquisition 1,770,000

Purchases 314,100 329,805 346,295 363,610 381,791

Direct Labor 1,099,350 1,154,318 1,212,033 1,272,635 1,336,267

Overhead Expense 204,000 208,080 212,242 216,486 220,816

Selling and Administrative

42,000 42,840 43,697 44,571 45,462
Expense

Interest - - - - -

Principal 590,000 590,000 590,000 - -

Tax Payment 301,500 340,260 359,980 388,820 414,140

Total Cash Outflow 1,770,000 2,550,950 2,665,303 2,764,247 2,286,122 2,398,476

Net Cashflow 1,659,450 590,050 632,748 698,705 1,349,978 1,419,430

Add: Cash Beg - 1,659,450 2,249,500 2,882,248 3,580,953 4,930,931

Cash End 1,659,450 2,249,500 2,882,248 3,580,953 4,930,931 6,350,360