McJolly is a newly-established fast food restaurant in the line of McDonald's and Jollibee, offering burgers and similar favorites with an Asian twist. At present it has only one branch. The company has plans of expanding to 2 more branches, with target opening dates not later than September 30, 2023. Opening one branch has an investment cost of Php 900,000.00. Start of the build-out for the 2 branches will commence on June 1, 2023. Below is the Balance Sheet of the company for year 2021: McJolly Food Corporation Statement of Financial Position For the Year ended December 31, 2021 ASSET LIABILITIES Cash In Bank 3,454,000.00 Accounts Payable Accounts/Notes Receivable 660,000.00 Other Liabilities 1,060,000.00 750,000.00 1,810,000.00 Furniture and Fixtures 480,000.00 Total Liabilities Office Equipment 546,000.00 620,000.00 Kitchen Equipment Delivery Truck 1,800,000.00 STOCKHOLDER'S EQUITIES Bonds 500,000.00 Equities 6,250,000.00 TOTAL ASSETS 8,060,000.00 TOTAL LIABILITIES & EQUITIES 8,060,000.00 Financial Policies: McJolly is a moderate type of investor. CONSIDERATION IS BASED on the expansion (financial goal). Make a careful note of the important dates. 1. 13th Month Pay is accrued each month There are currently 20 employees with an average monthly salary of Php 20,000 each. Accrual starts November 1 of every year and usually paid on or before November 30. This amount is ALWAYS on Time Deposit with a recurring hold-out period of 30 days for 12 months. Time Deposit rate is 6% PA. (Use: Investment Calculator: https://www.howtoinvestforbeginners.com/calculator/compound-interest.php) 2. Investments in Equities are approved by the CEO, provided the amount to be invested will not be greater than Php 600,000.00 Sunlife guarantees a rate of return of 16% tax-free, on the condition that minimum hold-out period is 1 year. 3. The bank account used for normal operations will be maintained to the balance of the total expenses of 3 months. The rest can be invested in T-Bills at 2% PA 3/12 months. 4. Investment in Bonds has a coupon rate of 4.875% PA, and coupon frequency of 2x per year. Issue date is June 30, 2020. Maturity date is June 30, 2030. Not intention of selling this investment. 5. With your exposure to Forex using XM and Vantage, you may also allocate up to Php 200,000.00 amount for investment. Indicate the total earning, the rate of return and risk rate, based on your actual trade. 6. Other "available" amounts can be invested in other securities for a short term period only, using different resources and platforms. Below is the income statement of McJolly for the year 2021. Due to less restrictions from the pandemic, the company executive projected an increase in sales of 10%, with no changes in the operating costs. McJolly Food Corporation Statement of Income and Expense For the Year ended December 31, 2021 SALES 20,160,000.00 Operating Expenses: Salaries & Wages 4,800,000.00 13th Month Pay & Incentives 480,000.00 Government Contributions 388,820.00 Rent 720,000.00 Utilities Expenses 174,000.00 Food Supplies and Provisions 6,480,000.00 Packaging, Cleaning Items 36,000.00 Office & Other Supplies 300,000.00 Other Expenses 450,000.00 Taxes and Fees 1,946,000.00 Total Expenses NET PROFIT 15,774,820.00 4,385,180.00 Requirement: What are the changes you will make on the portfolio? What are the investments you will take to optimize the earnings of the present portfolio, taking into account the planned expansion in 2023? With the spread in the portfolio, how much are the actual earnings from various investments based on the company's financial policies? Maximize the investment period until May 31, 2023. All earnings should also be computed using this as an end date.