Financial Statement / Analysis
START-UP CAPITAL:
5,000-10,000 pesos
Average revenue:
100,000 pesos
Average expenses:
80,000 pesos
What this situation means is that Pablo's MNL started with a capital of 10,000 pesos and then reduced it to 5,000 pesos. According to our knowledge, "start-up capital" is the initial capital or money allocated to establish a business. In this case, the business might spend 10,000 or 5,000 pesos as an initial investment.
After a period, the business earned an amount of 100,000 pesos, which means it had a profit or gain of 100,000. But, the expenses amounting to 80,000 pesos also need to be included. That means the remaining profit of the business is 20,000 pesos. (100,000 pesos na kita - 80,000 pesos na gastos).
The overall significance of this shows the performance of the business, how the mixing of income and expenses determines whether it is profitable or not. Because the details of start-up capital and expenses are important to determine if the business has good potential to succeed and generate income in the future.
