Five year financial plan for Manila North Tollways Corporation / Quisay, Mac Clifford M.; Tiu, Carlo B.; Ruzgal, Casseylyn L.; Bustamante, Elizabeth G.; Pacayra, Jennielyn I.; Pataray, Jharmine Faye G.; Repancol, Christhia dR.; Sales, Ma. Veronica R. and Somera, Kristel May P. 6

Financial Plan : (BSBA major in Finance and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2016. 56

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EXECUTIVE SUMMARY: This research is about the five year financial plan o Manila North Tollways Corporation. This entity is primarily in the business of developing, designing, constructing, financing, operating and managing toll road projects. In studying this entity the researcher aims to lessen the entity's debt, by obtaining increasing sales by 6% annually, increase the cash and cash equivalent by 25% in just 3 years or even less, maintain its collection of their accounts receivables, to increase their current assets by an average of 15% annually and lastly is to minimize their expenses by 3% annually. The researcher traces that the entity's main problem based on the evaluation analysis of their financial track is, the entity's capital structure is composed primarily of debt, with the following specific problems: The entity has greater current liabilities than their current assets. The entity is highly leveraged, The entity's total asset is inadequate to pay off its total liabilities, The entity has insufficient cash and cash equivalents to pay off its current liabilities, The entity has higher liabilities than its equity. With the set criteria, the researchers come up with three Alternative Courses of Action, First is Undertake Initial Public Offering, second Adaptation of Tollways System of Dubai (Salik) and the last one is Infuse Additional Capital through issuance of Additional Common Shares. By further analysing the said Alternative courses of Action. After further analysing and evaluating the alternative courses of action that is made against the set decision criteria, the researchers recommended the alternative courses of action III, Infuse Additional Capital through issuance of Additional Common Shares. This will let the entity acquire more capital with the least financing cost and thid action is expected to be vital in expanding their total toll road portfolio and improving their service, therefore providing aid in increasing their total revenue and improving their net income.

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