Yusayrr Fs Output Final

Ramon Magsaysay Memorial Colleges
College of Accountancy
Pioneer Avenue, General Santos City
A FEASIBILITY STUDY OF PUTTING UP A

ONE STOP SHOP FOOD COCONUT PRODUCTS
IN GENERAL SANTOS CITY
In Partial Fulfillment
of the Requirement for the Degree
Bachelor of Science in Management Accounting
By
Rein Rose D. Yusay

2021
Chapter I
INTRODUCTION
This chapter contains the general description and business outline of
the feasibility study. This includes the background of the study, rationale,
the objectives, scope and delimitation as well as the significance of the
study. This also contains the research methodology which further tackles
the research design used in the study, the respondents, the locale of the
study, the data gathering tools and procedures and the definition of terms.
1.1 Background of the Study
Coconut is a versatile plant that can be used in a variety of ways.
Almost every portion of a freshly grown coconut, edible and non-edible, is
used in some way. Anything coconut can be found in a natural food store.
Coconut water, coconut sugar, and coconut oil, each of the coconut's
various pieces is used for a particular, and often multiple, product. As a
result, oil competes with all other coconut items for the coconut plant's
easy availability.
Coconuts are a versatile plant that can be used to make a variety of
items. Anything from clothes to animal feed to beauty creams is made with
coconut products. Its edible flesh and delicious water are harvested, while
its husk is used for its hard fibers. Coconut water is a refreshing beverage
that is both safe and nutritious. The white flesh is a calorie-dense food that
is widely used in South Indian cuisine. Coconut honey can be made by
extracting high-quality oil, protein, and carbohydrates from grated wet
coconut kernels. The oxidative rancidity of the oil causes undesirable flavor
changes in desiccated coconut. The residual cake after the oil has been
extracted is used as cattle food. The dried coconut meat is known as
copra, and it is the source of coconut oil, which is used in massive
amounts to make baking and confectionery fats. Desiccated coconut is a
common ingredient in the chocolate and confectionery industries. The hard
shell of the nut is removed, and the thin brown rind is removed as well.
For millennia, coconut has been a staple in the diets of almost all
Polynesians and many Asians. It's used in cooking, as a flavoring, and in
beverages. Young people today are heavily reliant on conventional foods.
Coconut has a strong chance of growing in popularity in this market.
Coconut water – also known as buko juice or coco water – as one of
the products that has high potential abroad. It must be recalled that during
the presidency of Benigno Aquino III, he hailed coco water as one of the
Philippines’ most promising new export opportunities.
“One Stop Shop Food Coconut Products” is a business that sells
coconut-based food products. The researcher chose coconut since these
fruits is a versatile plant and it is abundant in the locale of the study.

1.2 Industry Background
The Philippine Coconut Authority (PCA), the government’s agency
tasked for the coconut industry, wrote in its website: “The fluctuation of
domestic copra market is cyclical and this is beyond the control of the PCA
or any government agency. This is because the domestic copra price is
dependent to the coconut oil price in the global market.
The global coconut oil price, on the other hand, is determined or
affected by the supply and demand situation of other vegetable oils (that is,
oil palm, soybean, rapeseed, sunflower, olive oil, etc.) in the international
market. Though the Philippines is the biggest exporter of coconut oil in the
world, coconut oil is just one of the many vegetable oils produced globally.
As such, its price is greatly affected by the movement of prices of other
vegetable oils particularly the palm oil which is the biggest among the
internationally-traded vegetable oils (35%) and soybean oil, the second
biggest vegetable oil (29%).
Market growth is propelled by the rise in demand for coconut water
as an energy drink. Active and health conscious consumers have shifted
their preference toward natural alternatives to caffeinated and sugar-based
energy drinks. Hence, the demand for coconut water as a natural energy
drink is growing rapidly due to its nutritional properties such as electrolytes

and nutrients, which is expected to drive the coconut products market
growth.
Increase in use of coconut-based products in food and beverage
applications is expected to drive the market for coconut products in the
future. Coconut products are widely used as ingredients in variety of
processed food products such as cookies, cakes, pies, soups, salads,
milkshakes, and ice cream. With growth in consumption of processed food
products, owing to the rise in urban population, the demand for coconut
products is expected to grow at a significant rate in near future.
1.3 Project Description
1.3.1 Proposed name of the Business and Logo
Figure 1
Business Logo
The proposed business will be registered under the name “One Stop
Shop Food Coconut Products”. The logo of the business is simple. It
comprises the words “Food Product” to emphasize what the entity sells.
Also, the logo is in a coconut shape that represents the main raw material
used by the proposed business.
1.3.2 Products
The proposed business offers coconut-based food products,
mostly deserts and afternoon snacks. The products are guaranteed
natural, safe and fresh since the proposed business is near to the coconut
plantation.
Listed on the next page are the products offered by the proposed
business:
1.3.3 Major Consumers
The major consumers of the proposed business will be those
people who loves coconut products and those who has sweet tooth.
1.4 Rationale of the Study
General Santos City is rich in its agricultural sector and one these
agricultural products is coconut. The researcher studies the feasibility of
putting up a “One Stop Shop Food Coconut Products” store. The

researcher decided to conduct a feasibility study of this kind of venture
because it has potential for the market.
Table
Products
PRODUCTS DESCRIPTION PRICE
Small ice pop made from milk 5.00

and young coconut.
Buko Ice
Candy Big 10.00
a dessert dish that makes
Glass use of shredded young 50.00
coconut as the main
ingredient.
Buko Salad Small Bowl 75.00
sweet, moist, coconut

w/out chocolate 10.00
center, covered in a
chocolate coating
Coconut Ball w/ chocolate 15.00
mini cupcakes that are

5 pcs 40.00
Soft, chewy and chock-full
Coconut of coconut flavor
Macaroons 10 pcs 75.00
Small 5.00
is a staple drink from
young and immature
Medium green coconut 10.00
Buko Juice Large 15.00

ultimate summertime treat.
Glass It is a layered dessert 75.00
consisting of sweetened
beans, fruits, shaved ice
Buko Halo- drizzled with evaporated
halo Coconut Shell milk, and ice cream 85.00
young coconut meat in a

4 slices 150.00
creamy filling and a crisp,
buttery pastry crust.
Buko Pie 8 slices 300.00
1.5 Objective of the Study
The study aims to provide reliable information about the aspects of
Market, Technical, Management and Organization, Financial and the
Socio-Economic of the proposed business.
Marketing
Describe the product and services the proposed business will
offer.
Ensure that the product will be promoted in a very good way in
which it can penetrate into the market.
Determine the target market, the market size and trends, the
competition, promotional strategy, pricing method and projections in
estimating the market share of the proposed business to prove the
viability and effectiveness of whether an establishment should be put
up or not.
Technical
Describe the process of the product, supplies and equipment,
plant size and layout needed to operate the business.
Determine the required raw materials needed to perform the
service offered by the proposed business.

Management and Organization
Focused on the employees, their jobs, benefits and salaries,
and to their tasks that will be done before starting the business.
Determine the form or business organization that is best
suited for the proposed business, the organizational structure, the
number of personnel needed, their qualifications, compensations,
and projected time table before the project is implemented.
Determine the competitive condition and to define the
company policies.
Financial
Determine the capitalization needed and sources of the fund
for the proposed business.
Ascertain whether the proposed business will be financially
sustainable and figure out on how the business deals with the trend
of demand and supply within the circulation of the business.
Determine whether the proposed business will provide
expected return to investors.
Socio-economic
Determine the contribution to the society and to the economy
of the proposed business and how the proposed business affects
employment, culture, and production.

Develop a vision and strategy for employment generation and
help increase the employment.
1.6 Scope and Limitation
This study of “One Stop Shop Food Coconut Product” business
covers only Barangay Lagao of General Santos City. The business plan
has been prepared mainly based on primary data. One hundred (100)
identified respondents who are the people of General Santos City
specifically those individuals’ ages fifteen (15) to fifty nine (59) years.
1.7 Significance of the Study
This study gives the consumer a product which is affordable but with
the same product quality with those sold at an expensive price. This
section will provide a brief description on the various significances of the
study given.
The Businessmen, might get another idea of what kind of
business to venture with.
The Owners and Managers, will help evaluating the
organizational structure and management capability of the project. It
will also provide additional knowledge on what strategic approach to
be used in running the business.

The Local Government, will benefited from the taxes that will
be imposed on this business and will help lessen the unemployment
rate.
And finally, to the Researchers, it will give the new skill and
knowledge that they can use in their profession. This paper can
enlighten their thinking with regards to the reality of life especially as
we walk towards the path of the business world.
1.8 Research Methodology
This section presents, the research design, and the research locale
where the study will be conducted, data gathering techniques, data
gathering procedures and the description of the product.
1.8.1 Research Design
The researcher used the descriptive design and applied using
survey questionnaires and key informant interview. The survey was
conducted by providing structured questionnaires to a number of
identified respondents from the people of Barangay Lagao, General
Santos City. The descriptive design is used for frequencies,
averages and other statistical calculations. It is a general procedure
employed in studies that have for their chief purpose the description
of phenomena (Good, 1973).

Quantitative research is used because it is a structured way in
which it can produce facts and statistics to guide the researchers.
The survey questionnaires and key informant interview will be
distributed to respondents to apply the descriptive research. The
data gathered was compiled, collate and finally reviewed preparatory
to proper presentation, appropriate analysis and interpretation.
Found in the next page is the figure that shows the entire
picture of how the feasibility study was conducted.
1.8.2 Respondents
The respondents of this study were randomly selected to
avoid any biases and to make an accurate and factual result. The
two hundred respondents were at least 15 years old to 59 years old.
The researcher also conducted interviews from National Statistics
Office (NSO) about the population of the locale and gathered
information from the Office of the City Mayor and Business Permits
and Licenses division to know the establishments offering the same
product as the proposed business.

Table
Respondents
No. of
Target Market
Population Age group respondents
Age group Percentage
(2015) percentage per age
15-94 years old
range
Under 1 1,139 2.24%
1 to 4 4,159 8.19%
5 to 9 4,538 8.94%
10 to 14 4,482 8.82%
15 to 19 5,292 10.42% 10% 16% 16
20 to 24 5,704 11.23% 11% 17% 17
25 to 29 4,802 9.45% 9% 15% 15
30 to 34 3,945 7.77% 8% 12% 12
35 to 39 3,466 6.82% 7% 10% 10
40 to 44 3,097 6.10% 6% 9% 9
45 to 49 2,697 5.31% 5% 8% 8
50 to 54 2,192 4.32% 4% 7% 7
55 to 59 1,834 3.61% 4% 6% 6
60 to 64 1,298 2.56%
65 to 69 947 1.86%
70 to 74 521 1.03%
75 to 79 389 0.77%
80 and over 287 0.57%
65% 100% 100
1.8.3 Locale of the study
The study focused within the barangay Lagao that holds
8.54% of the total population of General Santos City. The “One Stop
Shop Coconut Food Products” will be at the along main road Lagao,
General Santos City to satisfy the customers demand.

1.8.4 Data Gathering Tools
Interview Guide. This consists of questions relevant in
obtaining the information of different aspects of the feasibility study.
Survey Questionnaire. This tool allows an individual to
answer a series of questions as a respondent of the study. This is a
vital tool in gathering significant data for marketing aspects.
Books, Published Materials, and Internet. These tools also
helped the researchers to refer some related literatures to
supplement the data gathered from different sources.
1.9 Definition of terms
The following terms are conceptually and operationally defined for
better understanding of the readers.
Coconut products- Conceptually and operationally, these are
dishes made from coconut like buko ice candy, buko salad, coconut
balls, coconut macaroons, buko juice and buko halo halo.
One Stop Shop Coconut Products – In this study, it refers to the
proposed business which offers coconut lovers extraordinary way of
enjoying coconuts by giving different products of which the primary
ingredient used are coconuts like buko ice candy, buko salad,
coconut balls, coconut macaroons, buko juice and buko halo halo.
Chapter II
MARKET ASPECT
This chapter gives quantitative data that will reflect the status of the
showcase within the zone of business. It points to form an investigated on
the request of the item and supplies that can accomplish the target
advertise. Primarily, showcase share of the business is given significance
on this chapter since it'll manage in the event that the trade is doable for
the advertised.
2.1 Demand
One of the goals of this considers is to decide the evaluated
showcase share of the proposed business in Common Santos City. It gives
the thought of the measure of the commerce or company related to it
advertise and competitors.
The analyst conducted a study to its target showcase to urge the whole
request in connection to recurrence. The table on another page appears
the normal recurrence computed by the analyst from the overview
conducted.
Table 2
Average Frequency per product
2.1.1 Target Market
2.1.1.1 Market Segmentation
Market division separates an advertised into clearly
identifiable fragment of shoppers with comparable needs. Once
recognized, those sections can be focused on with a particular
showcasing blend custom fitted to each segment’s interesting
needs, wanted and inspiration.
2.1.1.1.1 Demographic Segmentation
Socioeconomics permit us to get it the populace in any
geographic re such as the age, sex, family, buying behavior,
client inclinations or get it the trade in any zone: measure,
industry, workers and incomes.
(15-18) Sweet
Sweet Tooth
Tooth
Teenagers
(18-25)
(18-25) Sweet
Sweet
Young Adults
Young Adults Tooth
Tooth
Age
Age
(25-40)
(25-40) Healthy
Healthy
Mature Adults
Mature Adults eaters
eaters
(40-59)
(40-59) Healthy
Healthy
Middle
Middle Age
Age eaters
eaters
Low income
Low income
customer
customer
Demographic
Demographic
Segmentation
Segmentation
Mid Income
Mid Income
Income
Income Customer
Customer
High
High income
income
customer
customer
Secondary
Secondary
students
students
Education
College or
College or
University
University
Within the demographic segmentation, age is the
foremost fundamental variable of them all, the foremost vital
since shopper inclinations persistently alter with age. This
variable can be seen with respect to particular age ranges of
Teenagers, Youthful Grown-ups, Develop Grown-ups and
Middle Age Adults. They are the target advertise since it talks
almost unwinding. Individuals these days needed to enjoy in
this modern kind of treatment particularly millennial who likes
unused trend and grown-ups finding a culminate put to loosen
up themselves.
2.1.1.1.1 Geographic Segmentation
Geographic division isolates the advertise
concurring to its geographic criteria such as countries,
states, locales, cities, neighborhood or zip codes. The
basic expectation of the trade is to create benefit. To
achieve this objective, a perfect promoting strategy is
fundamental. It is crucial that marketers recognize the
differences of each client and distinguishes their needs
by the distinctive sections of the advertise.

National Philippines
Geographic South
Regional Cotabato
Segmentation
General
Local Lagao
Santos City
Based on the census of 2015 the populace in Barangay
Lagao, General Santos City comes to 50,789. This area is the
target showcase since it is known for a highly urbanized
barangay in the city too. It could be a culminate put to
construct a modern different kind of benefit and innovation that
the commanders would appreciate.
2.2.2 Market Size and Trends
The number of potential buyers and/or sellers of a product or
service in a given market is referred to as market size. This will be
known before a new product or service is launched in a given
location.
Individuals in General Santos City aged 15 to 59 years old
who want to experience the unique service being provided make up
the target market for the proposed company. As of 2015, the
Philippine Statistics Authority recorded a total population in
Barangay Lagao is 50, 789. It was multiplied with the 2015 growth
rate of 1.89% in order to get the 2020 population. Individuals aged

15 to 59 who are interested in purchasing products from the
proposed business.
Table 3
Market Size
TOTAL POPULATION 78,486
PERCENT IN LESS: POVERTY PERCENTAGE OF WILLING LESS: MARGIN OF

PARTICULARS TOTAL
POPULATION RATE (16.7) RESPONDENTS (80) ERROR (10%)
15-19 16% 12,582 10,481 8,385 7,546

20-24 17% 13,560 11,295 9,036 8,133
25-29 15% 11,411 9,505 7,604 6,844
30-34 12% 9,382 7,815 6,252 5,627
35-39 10% 8,235 6,860 5,488 4,939
40-44 9% 7,366 6,136 4,908 4,418
45-49 8% 6,412 5,341 4,273 3,845
50-54 7% 5,216 4,345 3,476 3,129
55-59 6% 4,359 3,631 2,905 2,614
ESTIMATED MARKET
47,094
SIZE
To determine the market size of the business, the researcher
estimated the total population of people aged 15 to 59 years old,
which came to 78,486. This was then multiplied by the number of

people in each age group. Since not everyone could afford to use
the program, 10% of the total was deducted as a poverty rate. As
the percentage of willing respondents, the result was multiplied by
80 percent again. A total of 80 people is interested in starting a
company if it is successful. Finally, the result was subtracted from
the total by a 10% margin of error, yielding the approximate market
size of the proposed company.
2.1.2 Past Demand Pattern Evaluation
The rising demand for coconut water as an energy drink is
propelling market development. Natural alternatives to caffeinated
and sugar-based energy drinks are becoming more common among
active and health-conscious consumers. As a result of its nutritional
properties, such as electrolytes and nutrients, demand for coconut
water as a natural energy drink is increasingly increasing, which is
expected to drive the coconut products market growth.
In the future, the demand for coconut products is projected to
be driven by an increase in the use of coconut-based products in
food and beverage applications. Coconut products can be used in a
wide range of packaged foods, including cookies, cakes, pies,
soups, salads, milkshakes, and ice cream. With the rise in urban
population and increased consumption of processed foods, demand

for coconut products is expected to increase significantly in the near
future.
2.1.3 Demand Projection
The equation for determining total demand is shown in table 4
on the following page. To calculate the overall demand for the
proposed service, multiply the target market by the average
frequency.
The calculations for determining the overall demand of the
proposed company are shown in tables 2 and 3 on the previous
sections. The overall demand will be used to calculate the
business's market share when indirect rivals are taken into account.
Table 4
Estimated Demand
Particulars
Market Size 47,094
Multiply by frequency in a year 255
Market Demand (in person) 12,004,599
The target market size of 47,094 that is computed in table no.
3 is multiplied by the total average frequency of 255 which results to
12,004,599 markets demand in person.
2.2 Supply
2.2.1 Competition
This section depicts the market rivalry for each of the
aforementioned services, with a focus on General Santos City.
There are no other businesses in the area that sell the very same
goods as the proposed company. As a result, the proposed business
has a monopoly in the region.
2.2.2 Project’s Capacity
The proposed business has a total practical capacity of
22,118. The computation is shown below.
Table 5
Annual Cashier Practical Capacity (New Normal)

Annual Capacity
Operating Minutes 480

Divided by Minutes to Cater per
Customer 5
Total Capacity per Day 96
Multiplied by No. of cashier 2
Total No. of Orders per Day 192
Annual Capacity 55,296
Practical Capacity 80%
Estimated Annual Capacity 44,237
New Normal Rate 50%
New Normal Annual Capacity 22,118
Table 6
Annual Kitchen Personnel Practical Capacity (New Normal)

Annual Capacity
Operating Minutes 480

Divided by Average Minutes to prepare
the food 10
Total Capacity per Day 48
Multiplied by No. of Kitchen Personnel 2
Total No. of Orders per Day 96
Annual Capacity 27,648
Practical Capacity 80%
Estimated Annual Capacity 22,118
New Normal Rate 50%
New Normal Annual Capacity 11,059
2.2.3 Supply Projection
There are many existing competitors in the business of Coconut
products store, the researcher chooses 2 of them to compute the supply
projection of the existing competitors which will be indicated in the table
below.
Table
Competitor’s Market Share
COMPETITOR’S MARKET SHARE

Average # of # of working days per
Competitor Market share
Customers per day year
Bukohan sa Lagao 150 65 9750
Roadside Halo-halo 1120 70 78400
Total 88,150
2.3 Demands-Supply Analysis
As a final point, for the demand and supply analysis, the demand
supply analysis is shown in the table 5 below. The proposed business in
Barangay Lagao, General Santos City has 2 direct competitors.
Table 6
Demand-Supply Analysis
Particulars Total
Total Demand 12,004,599
Total supply from Direct Competitors 88,150
Free Market 11,916,449
2.3.1 Estimated Market Share
Estimated market share is the approximate percentage of a sector
that a company earns for a given period of time.

Table 7
Estimated Market Share Percentage
Particulars Total
Free Market 11,916,449
Practical Capacity 11,059.20
Estimated Market Share Percentage 0.09%
The proposed business's market share is calculated by
dividing the projected annual realistic potential of 11,059 by the total
free market of 11,916,449 as calculated in table 5. The planned
company has a .09% market share.
The market share of the proposed company is graphed in
Figure below.
Figure
Estimated Market Share
2.4 Pricing
The price is an integral part of the marketing mix, and having sales
is a must. This will help the company meet its profit targets to a large
degree. The pricing strategy must be scrutinized and well computed to
potentially come up with quantifiable and profitable results for the operation
of the business in order to achieve the main goal of the business, which is
to make a profit.
The pricing strategy used by the researcher is mark-up pricing
strategy. Markup pricing is a pricing method in which the price of a good or
service is calculated by adding all of the items together and adding a
percentage as a markup. To put it another way, it's the process of
determining a product's selling price by adding a percentage to the cost.
Table
Prices
PRODUCTS DESCRIPTION PRICE
Small ice pop made from milk 5.00

and young coconut.
Buko Ice
Candy Big 10.00
a dessert dish that makes
Glass use of shredded young 50.00
coconut as the main
ingredient.
Buko Salad Small Bowl 75.00
sweet, moist, coconut

w/out chocolate 10.00
center, covered in a
chocolate coating
Coconut Ball w/ chocolate 15.00
mini cupcakes that are

5 pcs 40.00
Soft, chewy and chock-full
Coconut of coconut flavor
Macaroons 10 pcs 75.00
Small 5.00
is a staple drink from
young and immature
Medium green coconut 10.00
Buko Juice Large 15.00

ultimate summertime treat.
Glass It is a layered dessert 75.00
consisting of sweetened
beans, fruits, shaved ice
Buko Halo- drizzled with evaporated
halo Coconut Shell milk, and ice cream 85.00
young coconut meat in a

4 slices 150.00
creamy filling and a crisp,
buttery pastry crust.
Buko Pie 8 slices 300.00
2.5 Marketing Program
2.5.1 Promotion Strategy

TYPE OF PROMOTION DETAILS AMOUNT
Design and conceptualization by an insider.
Size 5x10
Colored
1000 pcs. X 5.00
The fliers which include details such as
the entity's name, location, phone
FLIERS 5,000
number, and email address, the
essence of the company, including the
benefits guaranteed by the proposed
service, and, of course, the business's
mission statement. This will be
distributed 15 days prior to the
An insider designed and conceptualized
the project.
3x2 Size
20 pcs. X 300
This will be built in areas where a large
number of people will be able to see it,
such as highways and local roads. The
TARPAULINS tarpaulins will be shown to the public 6,000
one month prior to the opening to raise
awareness of the company and,
ultimately, to inspire customers to come
in and use the service. Furthermore, the
contents of the tarpaulins may be
identical to the contents mentioned
above.
Since the majority of the target market

uses this website as a pastime, a page
SOCIAL MEDIA on Facebook and accounts on Twitter 0
and Instagram are needed. It will aid in
the promotion of the business.
CHAPTER 3
TECHNICAL ASPECT
This chapter depicted the business's technological development
process. It included a variety of machines, processes, and materials that
are required for the operation of the company. These were the processes
and methods that a company used to produce goods.
3.1 RAW MATERIALS
The materials selection gives the business a competitive edge by
affecting and consistently improving the factors such as the productivity,
quality and service of the business that is why it is essential in putting up a
business.
These are the raw materials needed for the product to be produced
of the proposed business:
Table No.
Raw Materials
ITEMS SUPPLIER PRICE
KCC MALL OF
GENSAN
Coconut 39.00
KCC MALL OF
GENSAN
Condensed Milk 32.00
KCC MALL OF
GENSAN
Vanilla Extract 40.00
KCC MALL OF
GENSAN
Kaong 67.30
KCC MALL OF
GENSAN
Nata De Coco 55.20
KCC MALL OF
GENSAN
Fruit Cocktail 57.00
KCC MALL OF
GENSAN
Pineapple Chunks 63.95
KCC MALL OF
GENSAN
Cream 69.75
KCC MALL OF
GENSAN
Maple Syrup 120.00
KCC MALL OF
GENSAN
Coconut Oil 40.00
KCC MALL OF
GENSAN
Salt 10.00
KCC MALL OF
GENSAN
Butter 30.00
KCC MALL OF
GENSAN
Sugar 35.00
KCC MALL OF
GENSAN
Eggs 6.33
KCC MALL OF
GENSAN
Flour 69.00
KCC MALL OF
GENSAN
Gelatin 25.00
KCC MALL OF
GENSAN
Ice -
KCC MALL OF
GENSAN
Ice Cream 180.00
KCC MALL OF
GENSAN
Corn Flakes 123.00
3.2 TECHNICAL PROCESS
This section of the study introduces the materials required to run the
proposed company on a daily basis. The service flow, or the mechanism
by which products are delivered to customers, is also being addressed.
The proposed business offers different coconut-based products
listed in table 1. In order to purchase those products, customers will follow
the service flow of the entity which is shown below.
INQUIRY
YES NO
ACCOMODATION EXIT
CHOOSING
OF ORDER
PAYMENT
DINE
IN/TAKE
OUT
Figure 2
Service Materials Flow

The proposed business's operation flow begins with consumers
inquiring about the goods sold by the company's in-charge. Customers are
given leaflets that list the products sold by the entity by the waitress when
they enter. If the client will avail the products offered after inquiring, they
will be accommodated by the cashier. After ordering, payment shall be
made. After payment, they will wait for their name to be called. The
customer will either dine in or take out. If dine in, they can sit wherever
they want in the dining area for the duration of their visit. After that, you're
free to go.
PRODUCTION PROCESS
It is concerned with transforming a range of inputs into those
outputs that are required by the market. The production process of
the product offered is discussed on the following pages.
 Buko Ice Candy Recipe
Ingredients:
 2 cups buko juice (coconut water)
 1 pc young coconut, extract meat by scraping into strings
 2 tbsp cornstarch
 1/2 cup sugar

 1/2 cup sweetened condensed milk
 1½ cups evaporated or fresh milk
 1 tsp vanilla extract (optional)
Procedures:
1. Combine cornstarch and buko juice in a saucepan. Stir until
cornstarch is dissolved.
2. Heat the mixture on medium heat until it starts to boil. Turn
the heat to low and simmer for about 3 to 5 minutes, until it
thickens like syrup.
3. Pour mixture into a large mixing bowl. Add the sugar then
stir until it fully dissolves.
4. Let it cool down a little bit before adding the remaining
ingredients.
5. Add in sweetened condensed milk, fresh milk, and the
optional vanilla extract.
6. Stir thoroughly until well blended.
7. Add the coconut meat strings and mix well.
8. Test the taste of your mixture and add sugar if needed.

9. Using a funnel and ladle, pour the mixture into 5″ long ice
candy wrappers (use a pitcher if you don’t have a funnel).
10. Tie the top tightly and trim excess plastic from the knot.
11. Arrange ice candy in the freezer and freeze.
 Buko Salad Recipe
Ingredients
 4 cups young coconut buko, shredded
 6 ounces sugar palm fruit kaong, drained
 12 ounces coconut gel nata de coco, drained
 2 cans 15 ounces each fruit cocktail, drained
 8 ounces pineapple chunks drained
 1 14 ounce can sweetened condensed milk
 7 ounces table cream
Instructions
1. In a mixing bowl, combine young coconut, kaong, nata de
coco, pineapple chunks, and fruit cocktail. Gently stir to
distribute the ingredients.

2. Add sweetened condensed milk and table cream. Mix
until all the ingredients are properly distributed.
3. Refrigerate for at least 4 hours or place in the freezer for
1 hour.
4. Transfer to a serving bowl.
 COCONUT BALLS
Ingredients
• 1 stick butter
• 1 can sweetened condensed milk
• 132 oz powdered sugar
• Pinch of salt
• 1 kg coconut
• 1 kg chocolate bark
INSTRUCTIONS:
1. Melt butter slowly; add milk. Stir in sugar and salt.
Add coconut. Chill until easily handled. Roll into
balls. Insert toothpicks & place in refrigerator or
freezer until firm. Remove a few at a time to prevent
getting soft.
2. Melt bark in a double boiler. Dip each ball in
chocolate. Place on waxed paper & remove
toothpicks. Let set until firm.
 COCONUT MACAROONS
Ingredients
 14 ounces sweet shredded coconut or desiccated
coconut
 1/2 cup butter
 1/2 cup brown sugar
 3 pieces raw eggs
 14 ounces condensed milk
Instructions
1. Place the butter in a big bowl and cream using a fork
2. Add-in the brown sugar and mix well
3. Add the eggs and condensed milk then stir/beat until all
ingredients are blended
4. Put-in the Sweetened Shredded Coconut and distribute
evenly with the other ingredient in the mixture

5. In a mold (with paper cups if possible), place 1
tablespoon of the mixture on each of the cups
6. Pre-heat oven at 370 degrees Fahrenheit for 10 minutes
7. Bake the Coconut Macaroon mixture for 20 to 30 minutes
or until color turns golden brown.
 BUKO JUICE
 2 young coconuts
 ice cubes
 coconut meat
 2 tbsp. sugar (optional)
INSTRUCTIONS
1. Prepare 2 young coconuts that are already cracked and
clean by coconut vendor.
2. Pour coconut/buko juice through a strainer into a glass
to get rid any particles.
3. Scrape coconut/buko meat with a spoon from the shell
and add in the juice.

4. Stir in sugar if you’re using one and add ice cubes and
serve with straw.
5. Chop the top of the buko to make it into a bowl. Reserve the buko
water.
6. Add all the other ingredients into the buko. Be sure to layer them.
7. Add the shaved ice and a little of the buko water to give it more
flavor.
8. Top with ice cream.
9. Sprinkle with cornflakes or pinipig. Serve immediately.
 BUKO HALO HALO
Ingredients
 1 Whole buko, shred the meat
 crushed ice to the coconut shell
 6 tablespoons kaong
 6 tablespoons nangka (jackfruit)
 6 tablespoons macapuno (a variety of coconut meat sold in
bottles)
 6 tablespoons sweetened kidney beans

 6 tablespoons sweetened garabanzos
 6 tablespoons sweetened saba
 6 tablespoons ube or yam
 6 leche flan
 3 tablespoon pinipig
 6 tablespoons corn kernels
 ½ evaporated milk
 a scoop of ice cream on top
 sugar (optional)
Procedure:
1. Wash the buko shell and open it on the top using the sharp
bolo.
2. Shred the coconut meat and separate.
3. Put an ice in the empty coconut shell.
4. Put all the sweetened ingredients on top.

5. Lastly put a scoop of ice cream on top
 BUKO PIE
Ingredients
 2 cups all-purpose flour
 1/3 cup butter
 1 teaspoon salt
 1/3 cup vegetable shortening
 6 to 8 tablespoons cold water
 2 cups young coconut meat
 3/4 cup granulated white sugar
 1/2 cup cornstarch diluted in 1/2 cup young coconut water
 1/2 cup evaporated milk
Instructions
1. Create the crust. Combine flour and salt then mix using a
balloon whisk. Add butter and shortening then mix using a
pastry mixer. Gradually add cold water a tablespoon at a
time while mixing the ingredients. When everything is
completely mixed, gather the mixture and divide into two

equal parts. In a flat surface flatten each of the dough and
roll using a rolling pin until wide enough to fit an eight or
nine inch cake pan. Note: Sprinkle flour over the flat
surface to prevent the dough from sticking or use a silicon
mat. Arrange the first dough over the cake pan. This will be
the base. Set the second flattened dough aside. This will be
needed after arranging the filling in the cake pan.
2. Make the filling by heating a saucepan and pour-in the milk.
Let boil.
3. Add the granulated white sugar and stir.
4. Put-in the young coconut meat and cook for 3 minutes.
5. Pour-in the cornstarch diluted in young coconut water
and stir thoroughly while cooking. Cook until the texture
thickens.
6. Turn-off the heat and allow the mixture to cool down.
7. Preheat oven to 375 degrees Fahrenheit.
8. Arrange the cooked filling in the cake pan.
9. Put the second crust over the filling and seal the sides.
10. Create holes on the secondary crust using a fork. This
will serve as exhaust vents that will prevent the crust
from deforming.
11. Bake for 45 to 55 minutes or until the color turns golden
brown. Note: Baking time may vary; make sure to check
the color of the crust to determine if baking is complete.
3.3 BUSINESS LOCATION
This section discusses the details about the location of the proposed
business. The location map, vicinity map and the plan lay-out of the
proposed business will be included in the discussion. The proposed
business will be located at Lagao, General Santos City.
3.3.1 LOCATION MAP
The business’ location is a key to successful operations and
overall growth. It is important for any business to have a location that
is very accessible and convenient for customers. This section shows
the location of the proposed business.

VENTILACION ST.
LAGAO PUBLIC MARKET
JUNEDYS LIMOR
CASA POWER GATO
POLLO
CYCLE GARDO
NLSA ROAD CABEL STREET
VENTILACION ST. JNT EXPRESS

LAGAO
JOLLIBEE LAGAO
MLHUILLIER
LAGAO
Figure No.
Location Map
3.3.2 LAY-OUTS
This will present the floor plan of the proposed business and
will also show the arrangement of the building.

Figure No.
Plan Lay-Out
Figure No.
Perspective View
Figure No.
Front View
Figure No.
Top View
3.3.3 CAPITAL EXPENDITURES, SOURCES, ESTIMATED COSTS
AND CONTRACTS
This section discusses the capital expenditures of the
proposed business. Capital expenditures are funds used by a
company to acquire, upgrade, and maintain physical assets such as
property, plants, buildings, technology, or equipment.
The table below shows the building cost breakdown of the
proposed business.
ANDAGAN CONSTRUCTION AND ENGINEERING SERVICES | MALIGO, POLOMOLOK SOUTH COTABATO
#8-7000 |ANDAGAN11construct@gmail.com
BILL OF QUANTITIES
ITEM
DESCRIPTION QUANTITY UNIT UNIT PRICE AMOUNT
A. GENERAL REQUIREMENTS
Mobilization/ Demobilization 1 lot PHP 15,000 PHP 15,000

Clearing and Grubbing 1 lot PHP 5,000 PHP 5,000
Water and Electric Consumption 1 lot PHP 15,000 PHP 15,000
***Inclusion: Bunkhouse, Billboards, Perimeter Tarp
Total PHP 35,000
C. CONCRETE AND MASONRY WORKS

C.2 Column
Cement (Portland) PHP 40 bags PHP 250 PHP 10,000
Coarse Sand PHP 8 cum PHP 300 PHP 2,400
Gravelfill Grade yy PHP 5 cum PHP 850 PHP 4,250
Reinforce Bars 12mmØx6.0m PHP 45 le PHP 330 PHP 14,850
Tie wire GA 16 20 kls PHP 80 PHP 1,600
Subtotal PHP 39,400
C.3 Beam/Footing

Tie wire GA 16 PHP 5 kls PHP 80 PHP 400
Subtotal PHP 48,425
C.4 Slab
***Ground Floor and Roof Slab
Tie wire GA 16 PHP 5 kls PHP 80 PHP 400
Subtotal PHP 35,250
3.4 MACHINERIES AND EQUIPMENT
The equipment and machinery required for the operation of the
company are available locally and online until the business can begin to
function properly.
3.4.1 EQUIPMENT
Before the business would operate properly, it will require the
latest technology offered in the market today. The equipment to be
used is available in the local market.
Table
Equipment
EST.
ITEM DESCRIPTION QTY PRICE USEFUL SUPPLIER
LIFE
23.8 cu.ft Instaview Door-in-Door™

Refrigerator, with Dispenser, Inverter 1 49,998.00 15 LG Philippines
Linear Compressor, with Smart Wifi,
Refrigerator
Fujidenzo 10.5 cu. ft. Dual Compartment

Solid Top Freezer & Chiller FRC-105 A 1 19,950.00 15 FUJIDENZO
(White)
Freezer
Casio SR-S4000 Electronic Cash KCC MALL

2 26,097.00 10
Register GENSAN
Electric Cash Register
CARRIER SPLIT TYPE AIRCON KCC MALL

2 25,428.00 15
INVERTER GENSAN
Split Type Airconditioner
Specs:CPU -Ryzen 5 2600 Processor

from AMD is a AM4 3.4 GHz base clock KCC MALL
1 37,589.00 10
6-core, 12-thread 12nm FinFET CMOS GENSAN
desktop processor
Computer Set
Hanabishi HEO90RSS Electric Oven
KCC MALL
Oven 1 10598 GENSAN
Electric Ice Shaver Snow

Cone Maker Machine Silver
143lbs/hr Water Resistant
Ice Crusher On/Off Switch 1 1658 5 Jeremy's Corner
RINNAI RI-524E 3-IN-1 Gas

Stove
KCC MALL
Triple Burner 1 4250 8 GENSAN
3.5 FURNITURES AND FIXTURES
These are the furniture and fixtures that the proposed business will
purchase:
EST.
ITEM DESCRIPTION QTY PRICE USEFU SUPPLIER
L LIFE
100 x 60 x 80 - Stainless Steel Spaceman Rityz

1 13,113.10 20
Preparation Table - 2 Layers Philippines
Stainless steel
Tables
50 × 120 × 75 cm
50 × 120 × 75 cm
6 6500 15 San Yang Furnitures
50 × 120 × 75 cm
50*80*75cm; Dining Set 4 seater
Dining Set
Size: 120 x 60 x 75 cm (LWH)

Available in color: Natural Oak
Materials: PB+ Melamine, Power
Coated Frame
Office Chair
Tailee Furniture #1302 Office Table

with 4 Drawers and Lock (Gray)
Office Desk
OFM ESS Collection Bonded Leather

Executive Side Chair with Sled Base, 2 6,250.85 10 San Yang Furnitures
in Black (ESS-9015)
3.6 SUPPLIES
The following supplies are needed in the administrative operation of
the proposed business:

Price/Un Estimated
Item Description/Specifications Supplier
it annual
qty usage
tool that is used to remove some material from the work

Cutter piece by means of shear deformation.
2 Star Bright
₱ 15.00
used for cutting various thin materials, such as paper,

Scissors cardboard, metal foil, cloth, rope, and wire.
2 Star Bright
15.00
Flexible material in a roll with a sticky surface on one or

Tape both sides
10 Star Bright
10.00
Tape A tape dispenser is an object that holds a roll

Dispense of tape and has a mechanism at one end to shear 1 Star Bright
r the tape.
95.00
A stapler is a mechanical device used for joining papers

Stapler together.
1 Star Bright
65.00
a short thin wire with bent ends that is punched through

Staple
Wire
papers and squeezed to hold them together or punched 10 Star Bright
through thin material to fasten it to a surface.
35.00
an office tool that is used to create holes in sheets of

Puncher paper, often for the purpose of collecting the sheets in a 1 Star Bright
binder or folder.
55.00
Filers filing papers 4 Star Bright

195.00
a book that has records of the best or most remarkable

Record
Book
performances or achievements in a particular sport or 6 Star Bright
activity
80.00
Receipts A receipt is an acknowledgment for a payment received

Sheets in paper or electronic form.
20 Star Bright
15.00
Bond It is an uncoated stock that is used for writing, drawing,

Paper and of course printing things like letterhead and 10 Star Bright
(Long) business documents.
150.00
Bond It is an uncoated stock that is used for writing, drawing,

Paper and of course printing things like letterhead and 10 Star Bright
(Short) business documents.
120.00
3.7 UTILITIES
This segment addresses the utilities that the planned company
would use. Utilities are things like electricity, coal, water, cable, and
telephone that are useful in the home. The proposed business would use
power, telecommunications, and water in its operation.

3.7.1 ELECTRICITY CONSUMPTION
The South Cotabato Electric Cooperative will provide the
electricity (SOCOTECO II).
The table below shows the electricity consumption of the
proposed business.
Table no.
Production Electricity Consumption
EQUIPTMENT KWH ANNUAL USAGE (HRS)

Refrigerator 6.4 1,996.80
Freezer 16 4,992.00
Table no.
Administrative Electricity Consumption
MACHINE/EQUIPMENT KWH ANNUAL USAGE

(HRS)
Electric Cash Register 0.8 249.60
Spli typ Air-conditioner 19.2 5,990.40
Computer Set 0.3 93.60
Fluorescent Light 0.48 149.76
Post Bulb Light 0.4 124.80
3.7.2 WATER COMSUMPTION
NAWASA will be in charge of the water supply. A fix rate of
Php424.00
3.7.3 TELEPHONE/INTERNET
The owner has selected PLDT as the telecommunications company to
provide phone and internet service to the proposed enterprise. They will
avail the Php999.00 package of the said company. It includes 25mbps and
shall be monthly paid.
3.8 WASTE MANAGEMENT
As per requirements of City Environment of Natural Resources
Office (CENRO), cleanliness and orderliness shall be observed all over the
place. Trash will also be properly segregated by categorizing the classes of
waste. The proposed business will have trash cans and bags for bio-
degradable and non-biodegradable to be collected by the city management
unit. Proper waste disposal must be observed and maintain to promote
and ensure the health of the customers. A proper inspection will be
conducted once a day after the operation. There will be crews to be
assigned in performing the said task.
3.8.1 HAZARDOUS WASTE DISPOSAL
According to the ORDINANCE 12 series of 2008 of General
Santos City, in accordance with Republic Act (RA) No. 9003
otherwise known as Ecological Solid Waste Management Act of
2000, provides for an ecological solid waste management program,
hazardous waste refers to solid waste or combination of solid waste

which because of its quantity, concentration, or physical chemical,
infectious characteristics may cause, or significantly contribute to an
increase in mortality or an increase in serious irreversible, or
incapacitating reversible, illness. Thus, these wastes shall be
collected by the garbage collector and to be disposed of in the
disposal facility of the City provided. Since the proposed business is
a private entity, the collection may be charge with tipping fees for the
disposal of waste. The local government unit sets schedules in
collecting hazardous wastes.
3.8.2 NON-HAZARDOUS WASTE DISPOSAL
According to the ORDINANCE 12 series of 2008 of General
Santos City, in accordance with Republic Act (RA) No. 9003
otherwise known as Ecological Solid Waste Management Act of
2000, provides for an ecological solid waste management program,
non-hazardous wastes refers refer to all discarded household,
commercial waste, non-hazardous institutional and industrial waste,
street sweepings, construction debris, agricultural waste, and other
non-hazardous/nontoxic solid waste. These wastes shall be
collected by the garbage collector and to be disposed of in the
disposal facility of the City provided. Since the proposed business is

a private entity, the collection may be charge with tipping fees for the
disposal of waste. The local government unit sets schedules in
collecting hazardous wastes.
Chapter 4
ORGANIZATIONAL AND MANAGEMENT ASPECT

This chapter tackles about the entire organizational arrangement of
duties and responsibilities, flow of authority and manpower level
requirement. This contains the organizational chart and the qualifications
of the people involved in the formation of the business organization. It must
be set up aimed at finest effectiveness. To attain this, the management
must be able to plan all activities, for the company to become dynamic and
competitive.
4.1 Form of Business Organization
Management ensures optimum utilization of resources in a business
which clearly says that it is important in a company. The form of
organization in the proposed “One Stop Shop Food Coconut Products”
Shop is an unlimited partnership. An unlimited partnership is a company
with at least two persons participating in its business activities or in the
management of its assets and being jointly and severally liable for its
debts. Also, they are bound to contribute money, property and industry to
the business. This form of business organization is easy to establish and
less expensive to organize and it provides an opportunity to pool the
abilities, experiences and resources of the partners. Moreover, there is a
big possibility that there will be no insufficiency when it comes to resources

because the partners are jointly obliged to contribute in case there is
sufficiency to funds.
4.2 Organizational Structure
The organizational structure (chart) serves as the guide of the
business entity because it shows the management structure of the
organization. A line organization structure will be used by the proposed
“One Stop Shop Food Coconut Products” Shop.
Manager/
Cashier (1)
Kitchen Head Cook

Waitress
Assistant (1)
(1)
(1)
Figure 10
The Organizational Chart
The figure above shows the organizational chart of “One Stop
Shop Food Coconut Products” Shop. In line organization, authority,
responsibilities and duties are clearly determinable. All the decision-
makings will be centralized to the owner and the manager will be the
in-charge for the implementations. The authority starts from the

owner and passed to the manager and to the lower level of
organization.
4.3 Personnel Qualifications
Before the inception of business operation, it is very important to
consider the selection of its human resources or manpower. Hiring the best
employees plays a great role to the success of the business; thus, their
specific functions, duties and responsibilities should be properly stated and
clarified. The following are the detailed description and qualification of the
required workforce.
4.3.1 Manager (1)
Qualifications:
4.3.1.1 Graduate of any business course.
4.3.1.2 Male or female, 25-35 years old
4.3.1.3 Has at least two (2) years of experience in
management and scheduling, inventory control,
and ordering.
4.3.1.4 Must have a good moral character.
4.3.1.5 Has excellent communication skills.

4.3.2 Cashier (1)
Qualifications:
4.3.2.1 At least graduate of any 2-year course
4.3.2.2 Female, 20-30 years old
4.3.2.3 Honest and with pleasing personality
4.3.2.4 Skilled in handling and counting cash
4.3.3 Waitress (1)
Qualifications:
4.3.3.1 Female, 18-25 years old
4.3.3.2 At least high school graduate
4.3.3.3 Must have a pleasing personality
4.3.3.4 Must be responsible and hardworking
4.3.4 Kitchen Assistant (1)
Qualification:
4.3.4.1 Male or female, 18-30 years old
4.3.4.2 Has the ability to follow instructions
4.3.5 Head Cook (1)
Qualifications:
4.3.5.1 Male or female
4.3.5.2 Must have a complete and thorough knowledge about

baking process for pastries and other baked products
4.3.5.3 Has recognized baking qualification
4.3.5.4 25-25 years old
4.3.5.5 Must be responsible and hardworking
4.4 Personnel Duties and Responsibilities
Personnel management is a part of management concerned with
people at work and their relations within a firm. Duties and responsibilities
of every employee should be properly oriented to avoid overlapping of
jobs. The following are the duties and responsibilities of every employee to
be hired in “One Stop Shop Food Coconut Products” Shop.
4.4.1 Manager (1)
The following are the duties and responsibilities of the
manager:
4.4.1.1 Oversees daily production
4.4.1.2 Sets work schedules
4.4.1.3 Assigns employee tasks
4.4.1.4 Ensures product quality
4.4.1.5 Keeps facility running and clean

4.4.1.6 Plans, organizes, directs, and controls all the
employees of the organizations
4.4.1.7 Checks sales records
4.4.1.8 Responsible in purchasing raw materials.
4.4.1.9 Implements disciplinary procedures where
necessary, and reports all serious breach of
discipline to the owner.
4.4.1.10 Promotes and practices relevant health and fire
safety standards.
4.4.1.11 Advises staff of unavailability, inventories of food
products, information relation to drinks, etc., and
any other relevant information in order to ensure
efficient operation of the business.
4.4.2 Cashier (1)
cashier:
4.4.2.1 Accepts cash for payment.
4.4.2.2 Maintains sufficient amounts of change in cash
drawer.
4.4.2.3 Keeps records of sales

4.4.2.4 Balances cash drawer and receipts;
documents discrepancies.
4.4.2.5 Keeps counter’s deck clean.
4.4.2.6 Provides customer assistance.
4.4.2.7 Maintains well-groomed look throughout the
day.
4.4.3 Waitress (1)
The following are the duties and responsibilities of a
waitress:
4.4.3.1 Takes care of the communication such as
telephone
4.4.3.2 Assists the customers
4.4.4 Kitchen Assistant (2)
The following are the duties and responsibilities of a
kitchen assistant:
4.4.4.1 Ensures the food preparation areas are clean
and hygienic
4.4.4.2 Washing utensils and dishes, and making sure
they are stored appropriately
4.4.4.3 Sorting, storing, and distributing ingredients

4.4.4.4 Washing, peeling, and chopping foodstuffs
4.4.4.5 Disposing of rubbish
4.4.4.6 Cleans the table and reset tables
4.4.4.7 Taking dirty dishes to the dishwasher
4.4.5 Head Cook (1)
head baker:
4.4.5.1 Ensure quality control during and post
production including maintenance of hygiene
standards.
4.4.5.2 Supervise and train production staff to
efficiently and safely produce the products with
minimum wastage.
4.4.5.3 Calculate raw material needs and efficiently
maintain stock levels to meet production
requirements.
4.5 Personnnel Salary Structure
Salary is the compensation received by employees as
payment for the services they rendered in the business. Employees
are contracted to work for a specific hours per day and are expected
to work the number of hours sufficient to do the job to a satisfactory
standard. Specifically, the manager will work eight (10) hours a day,
as well as the head baker. The kitchen assistants, cashier, and the
waitress will also work 10 hours a day. The table below shows how
much each employee may receive in return for their services.
Salaries may vary according to each position an employee holds in
the establishment.
No. of Rate per Monthly Total Annual Total 13th-month Total Salaries
Position EE day Salary Annual Salary Salary Pay Expense
Manager/Cas
hier 1 ₱ 550.00 ₱ 14,300.00 ₱ 171,600.00 ₱ 171,600.00 ₱ 14,300.00 185,900.00
Head Cook 1 ₱ 450.00 11,700.00 ₱ 140,400.00 ₱ 140,400.00 ₱ 11,700.00 152,100.00

Kitchen
Assistant 1 ₱ 370.00 9,620.00 ₱ 115,440.00 ₱ 115,440.00 ₱ 9,620.00 125,060.00
Waitress 1 ₱ 311.00 8,086.00 ₱ 97,032.00 ₱ 97,032.00 ₱ 8,086.00 105,118.00

Total ₱ 43,706.00 ₱ 524,472.00 ₱ 524,472.00 ₱ 43,706.00 ₱ 568,178.00
The manager works eight (8) hours a day, from 10AM to 6PM.
He will receive Php14,300 a month as compensation.
Other employees will also work eight (8) hours a day. The
kitchen assistant and waitress will receive Php9,620.00 a month.
The head cook will work eight (8) hours a day, from 9:30AM to
5:30PM.It will receive a monthly salary of Php11,700 a month.

4.6 Pre-Operating Activities
Pre-operating activities are activities that will take place before the
formal operation of the business. The time intended for each activity is
based on surveys and interviews so as to avoid any unnecessary
expenses during the conduct of the said activities.
4.6.1 Project Feasibility Study
Under this activity, the prospective owners will be guided to
study whether the proposed business will be beneficial to both the
customers and the management and if the venture would be
profitable. This study will provide the necessary information needed
by the prospective partners. This activity will take two months to
accomplish because all aspects of the business would be analyzed
such as market, technical, organizational, financial and socio-
economic.
4.6.2 Selection of Location
The prospective owners will look for the proper and suitable
place to put up the proposed “One Stop Shop Food Coconut
Products” Shop. The selection of location will consider the following
factors:
4.6.2.1 Accessibility of the selected location to potential
customers.
4.6.2.2 Measurement of area. This should be considered
because the desired area should be enough to
accomodate the desired layout of the building.
Furthermore, the prospective partners will negotiate with the
owner of the building for the lease agreement.
4.6.3 Permits and Licenses
To be able to operate legally, the prospective proprietor will
have to secure permits and licenses in the proper licensing authority.
The proposed “One Stop Shop Food Coconut Products” Shop
must be registered at the following government agencies
4.6.3.1 Business Permit
In General Santos City, all business owners must
secure a business permit. The process below is the revised
business permit application process in the city as required in
the City Mayor’s Office-Business Permits and Licenses
Division.
4.6.3.1.1 Secure forms from City Mayor’s Office
(CMO)- Business Permit and Licenses
Division (BPLD)/BPLD Lounge.
4.6.3.1.2 Submit to BPLD the duly filled-up forms:
4.6.3.1.2.1 Application form
4.6.3.1.2.2 Barangay Clearance
4.6.3.1.2.3 Community Tax
4.6.3.1.2.4 Certificate
4.6.3.1.2.5 SEC
4.6.3.1.2.6 BIR Annual Registration
4.6.3.1.2.7 Pag-ibig
4.6.3.1.3 Proceeds to City Treasure’s Office to pay
appropriate dues.
4.6.3.1.4 Proceed to Bureau of Fire Protection (BFP)
to get fire safety inspection certificate
(FSIC).
4.6.3.1.5 Return to CMO-BPLD to submit all
documents for preparations of business
permit.
In addition to the abovementioned, the
following requirements must also be
complied.
4.6.3.1.5.1 SSS Clearance
4.6.3.1.5.2 Phil health Clearance
4.6.3.1.5.3 Pag-ibig Clearance
4.6.3.1.5.4 CENRO Clearance and Official
receipt
4.6.4 Acquisition of Supplies and Equipment
This is when the prospective owners can scout for the
materials, supplies, and equipment to be used in the operation of the
business as presented in the Technical Aspect of this study. The
equipment will be purchased from the suppliers.
4.6.5 Hiring and Orientation of Personnel
This activity is viewed by the researchers as one of the most
crucial parts of establishing a business since the employees are
considered to be the hands of the organization. They are
responsible for the success and failure of the propose “One Stop
Shop Food Coconut Products”. The prospective partners will look for
the most efficient and hardworking personnel. The manager is hired
first, and then he will be the one responsible in selecting the most
qualified crews by conducting examination and interview. The
owners will organize a training beforehand to orient and train them
on their jobs before they will be put in the actual practice. It should
be noted that in the subsequent hiring process, the responsibility for
the hiring and firing employees will be borne by the manager except
for managerial position whom the owners are primarily responsible
of.
The hiring requirements may include but not limited to the
following:
4.6.5.1 Application Letter
4.6.5.2 Completely filled-out resume or bio-data for
the lower personnel
4.6.5.3 Photocopy of authenticated birth certificate
4.6.5.4 College Diploma for graduates and Transcript
of Records for undergraduate applicants
4.6.5.5 Clearances: Purok, Barangay, and Police
4.6.5.6 Passed the job examination provided by the
proposed entity
4.6.6 Promotional Activities
Promotional activities will start fifteen days before the opening
day. Advertisement on automobiles will end after 15 days from the
start of the operation.
4.6.7 Start of Business Operation
After everything is settled or after the above mentioned
activities was already finished, the business can now start legally.
4.7 Project Time Table (Gantt Chart)
Gantt charts is a chart where horizontal lines show the actual and
projected amounts of time involved in completing a particular task. The
owners should know how much time they spend on a particular activity to
avoid any unnecessary expenses from duplication of tasks.
Table 12
Project Time Table
Activities 1 2 3 4 5
Project Feasibility Study
Securing Business Permits and Licenses
Acquisition of Equipments
Construction of Leasehold Improvements
Hiring and Orientation of Employees
Promotional Activities
Start of Operation
This table presents the project time-table. The project
feasibility study will be conducted within two (2) months. The securing of
the business permits and licenses will be done within one (1) month. The
acquisition of the equipment needed the construction of the leasehold
improvement, and the hiring and orientation of employees can be done in a
month. The promotional activities will be done a month before the start of
the operation. The business is estimated to start at the end of the fifth
month.
Chapter 5
FINANCIAL ASPECT
This chapter determines the profitability level of the project. This also
involves a thorough coverage of financial information of the business. It
covers detailed information on the total project cost, initial capital
requirements, source of funding, financial statements and financial
analysis.
5.1 Financial Assumptions
The following are the financial assumptions to be implemented by
the proposed business regarding financial related issues of the entity.
These are based on the data gathered by the researchers from interviews
in their competitors in the business industry.
5.1.1 Revenue
This portion of the study states the financial assumption with
regards to the computation of the revenues for the proposed
business.
1. Sales will increase by 5% annually starting from its second
year of operation.
2. All sales will be on cash basis.
3. The proposed business will be operating at its practical
capacity 80%.
4. Sales are VAT exclusive.
5.1.2 Expenses
This portion of the study states the financial assumptions with
regards to the computation of the expenses for the proposed
business.
1. All expenses are on cash basis other than depreciation
expense.
2. Pre-operating cost will be expensed as incurred.
3. Purchases of inventories will increase by 4.1% starting
year 2 based on inflation rate and will be expensed
outright.
4. Utilities will be expensed outright each year.
5. Straight line method will be used in calculating the
depreciation expense of the equipment. The depreciation is
constant from first year to fifth year.

6. All expenses related to government agencies will be
constant over the years except for community tax.
7. Salaries and wages will increase by 4.1% after every three
years.
8. 13th month pay will be provided to the personnel.
9. Payment of SSS, Philhealth, and Pag-ibig will be made
every first week of the following month.
10. Income tax of the employees will be withheld.
11. Repairs and maintenance will be 5% of the cost of the
fixed assets during the first year and will be increased by
4.1% in the next years.
12. Rent expense will be constant from the first year of
operation and in the next years.
13. Pre-operating expenses, start-up, training cost will be
part of the investment cost while advertising and
promotional costs are charged to expense.
14. Purchases are VAT inclusive.
5.1.3 Taxation
This portion of the study states the financial
assumptions that may affect the other sections of the
projected financial statements of the proposed business.
1. Philippine Peso will be used as the currency in preparing
the financial statements of the proposed business.
2. The proposed business will be in a form of partnership.
3. The partners will invest Php422, 521.40 each or a total of
Php845, 042.80 in order to start the business.
4. The entity shall pay regular corporate income tax (RCIT) of
30% on net taxable income.
5. Income taxes will be paid every 15 th day of the first month
of the succeeding quarter.
5.2 Initial Capitalization
The total capitalization of the proposed business will be Php845,
042.80. This investment will be used in the acquisition of machineries and
equipment, supplies, furniture and fixtures, and payment for the
construction of building and other expenditures necessary for the
establishment of the proposed business. Presented below on the next
page is the table of investment cost of the proposed venture.

TABLE
INVESTMENT COST
INVESTMENT COST
Particulars Amount
Property Plant and Equipment 693,308
Pre-Operating Expense 151,735
Total ₱ 845,042.80
5.3 Sources of Financing
To total investment will be obtained from the personal assets of the
prospective owners who will invest Php422, 521.80 each. It is assumed by
the researcher that the prospective partners have the capacity to provide
the investment need thus, no borrowings will be required.
5.3.1 Capital Structure
The capital structure to be utilized by the proposed business is
through the partner’s personal assets. It is in the form of cash
provided by the parents of the company that will suffice the daily
expenses of the business’ operation.
5.3.2 Cost of Capital

The cost of capital of the proposed business cannot be
computed since the source of financing of the entity is through
partner’s personal asset.
5.4 Projected Financial Statements
This section provides information about the financial statements of
the proposed business. Financial statements provide information that is
useful to a wide range of users. These are Balance Sheet, Income
Statement, Cash Flows and Changes in Partners Equity. In line with this, a
summary of these statements are presented in the next page and its
detailed information are shown in exhibit section.
5.4.1 Income Statements
This section shows the financial performance of the proposed
business. Statement of Financial Performance provides information
about the summarized earned revenue and expenses incurred in a
particular period of time to measure the profitability of the business.
The researcher prepares a five (5) year periods of financial
performance for the proposed business showing the comparison and
the expenses incurred.
The table below shows the Projected Statement of Financial
Performance of the proposed business.

Projected Statement of Financial Performance
Year 1 Year 2 Year 3 Year 4 Year 5
Service Revenue 1,350,328.32 1,417,844.74 1,488,736.97 1,563,173.82 1,641,332.51
Total Income 1,350,328.32 1,417,844.74 1,488,736.97 1,563,173.82 1,641,332.51
Less: Operating Expenses
Salaries Expense 514,436.00 514,436.00 514,436.00 535,527.88 535,527.88
SSS Contribution 41,760.00 41,760.00 41,760.00 43,680.00 43,680.00
PhilHealth Contribution 14,245.92 14,245.92 14,245.92 14,830.00 14,830.00
Pag-ibig Contribution 9,497.28 9,497.28 9,497.28 9,886.67 9,886.67
Cleaning Materials and
Supplies Expense 15,140.00 15,760.74 16,406.93 17,001.41 17,618.14
Advertising Expense 9,500.00 1,500.00 1,561.50 1,625.52 1,692.17
Depreciation Expense 53,249.33 53,249.33 53,249.33 53,249.33 53,249.33
Repair & Maintenance 35,961.49 37,435.91 38,970.78 40,568.59 42,231.90
Utilities Expense 122,021.86 127,024.75 132,232.77 137,654.31 143,298.14
Communication Expense 11,988.00 11,988.00 11,988.00 11,988.00 11,988.00
Business Permits and Licenses 10,251.13 10,278.14 10,306.49 10,336.27 10,367.53

Other Operating Expense 489,589.97 499,239.07 519,499.40 540,794.70 562,967.20
Other Expenses 5,000.00 3,123.00 5,205.00 3,225.54 5,418.41
Rent Expense 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Total Expenses 1,342,640.98 1,349,538.14 1,379,359.39 1,430,368.20 1,462,755.35
Net Income Before Tax 7,687.34 68,306.60 109,377.58 132,805.62 178,577.16
Less: Tax (30%) 2,306.20 20,491.98 32,813.27 39,841.69 53,573.15
Net Income After Tax ₱ 5,381.14 ₱ 47,814.62 ₱ 76,564.30 ₱ 92,963.93 ₱ 125,004.01
The Statement of Financial Performance shows a net income
after tax of Php5, 381.14. At the end of the second year, it increased
by 7.89% which resulted to a net income of Php47, 814.62. At the
end of the third year, it shows an increase of Php28, 749.69 or 60%.
By the end of the fourth year, the net income of the proposed
business is Php92, 963. It has increased by 21%. The net income at
the end of the fifth year is Php125, 004.01 or an increase by 34%
5.4.2 Balance Sheets
This section pictures out the financial condition of the firm as a
whole. It shows the control asset, owned liability and the owner’s
equity of the business on given dates. The purpose of the balance
sheet is to show the financial pattern of the business. The

researcher prepared a 5 year period of the financial position and
condition of the business showing assets, liabilities and partners’
equity at the year end.
The table on the next page shows the summary of the
Projected Statement of Financial Position.
Projected Statement of Financial Position

Current Assets:
Cash ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36
Prepaid Tax ₱ - ₱ - ₱ - ₱ - ₱ -
Total Current Assets ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36
NonCurrent Assets
Property,Plant and Equipment 693,307.80 693,307.80 693,307.80 693,307.80 693,307.80

Accumulated Depreciation (53,249.33) (106,498.65) (159,747.98) (212,997.30) (266,246.63)
Total NonCurrent Assets 640,058.48 586,809.15 533,559.83 480,310.50 427,061.18
Total Assets ₱ 857,487.12 ₱ 885,940.87 ₱ 927,303.35 ₱ 975,944.67 ₱ 1,041,879.54

Current Liabilies
SSS Payable ₱ 5,220.00 ₱ 5,220.00 ₱ 5,220.00 ₱ 5,460.00 ₱ 5,460.00
Philhealth Payable 2,374.32 2,374.32 2,374.32 2,471.67 2,471.67
Pag-ibig Payable 1,582.88 1,582.88 1,582.88 1,647.78 1,647.78
Income Tax Payable 576.55 5,122.99 8,203.32 9,960.42 13,393.29
VAT Payable - - - - -
Total Current Liabilities ₱ 9,753.75 ₱ 14,300.19 ₱ 17,380.52 ₱ 19,539.87 ₱ 22,972.73
Owner A, Capital ₱ 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40 ₱ 509,453.40

Owner B,Capital 423,866.69 435,820.34 454,961.42 478,202.40 509,453.40
Total Equity ₱ 847,733.37 ₱ 871,640.68 ₱ 909,922.83 ₱ 956,404.80 ₱ 1,018,906.80
Total Liabilities and Equity ₱ 857,487.12 ₱ 885,940.87 ₱ 927,303.35 ₱ 975,944.67 ₱ 1,041,879.54
The summary shows that the assets, liabilities and equity of
the proposed business continue to increase. The second year of
operations resulted to an increase in the assets of Php28, 453.75 or
3%. On the third year of operation, the assets increased by Php41,

362.48 or 5%. On the fourth year, the total assets of the business
have increased by 5% or Php48, 641.32; while Php65, 934.87
increases at the end of fifth year.
5.4.3 Statement of Cash Flow
This section pictures out the cash flow activities,
particularly operating, investing and financing. Statement of
Cash Flows shows the inflows and outflows of cash during the
operation. It also shows the liquidity of the firm in a given
period of time. Aside from that it also assesses the ability of
the business to generate cash in order to pay its obligations.
The table below shows the summary of Projected
Statement of Cash Flows of the proposed business.
Projected Statement of Cash Flows

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net income ₱ - ₱ 5,381.14 ₱ 47,814.62 ₱ 76,564.30 ₱ 92,963.93 ₱ 125,004.01
Add: Depreciation Expense 53,249.33 53,249.33 53,249.33 53,249.33 53,249.33
Cash Income ₱ - ₱ 58,630.47 ₱ 101,063.94 ₱ 129,813.63 ₱ 146,213.26 ₱ 178,253.34
Operating Activities:
(Increase)/Decrease
Increase in SSS Payable 5,220.00 240.00
Increase in PhilHealth Payable 2,374.32 (0.00) (0.00) 97.35
Increase in PAG-IBIG Payable 1,582.88 64.90
Increase in Income Tax Payable 576.55 4,546.44 3,080.32 1,757.10 3,432.87
Net cash Provided by Operating Activities ₱ - ₱ 68,384.22 ₱ 105,610.39 ₱ 132,893.95 ₱ 148,372.61 ₱ 181,686.20
Investing Activities:
(Increase)/Decrease
Increase in PPE ₱ (693,307.80) ₱ (693,307.80)
Net Cash Provided by Investing Activities ₱ (693,307.80) ₱ (693,307.80) ₱ - ₱ - ₱ - ₱ -
Financing Activities:
Increase/(Decrease)
Partners' Investment ₱ 845,042.80 ₱ 845,042.80
Partners' Withdrawal ₱ (2,690.57) ₱ (23,907.31) ₱ (38,282.15) ₱ (46,481.97) ₱ (62,502.01)
Net cash Provided by Financing Activities ₱ 845,042.80 ₱ 842,352.23 ₱ (23,907.31) ₱ (38,282.15) ₱ (46,481.97) ₱ (62,502.01)
Net increase/decrease in cash ₱ 151,735.00 ₱ 217,428.65 ₱ 81,703.08 ₱ 94,611.80 ₱ 101,890.64 ₱ 119,184.20

Add: Cash, Beginning 217,428.65 299,131.72 393,743.53 495,634.17
Cash, Ending ₱ 151,735.00 ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36
The Projected Statement of Cash Flows of the proposed
business shows cash balance of Php151, 735.00 at Year 0.
By the end of the first year of operations, the cash balance is
Php217, 428.65. At the end of the second year, the cash
balance has increased to Php299, 131. The cash balance at
the end of the third year is Php393, 743.53. It has increased
by 32% compared to the previous year. On the fourth year, the
ending cash balance is Php495, 63.17, and increased by 26%.
5.4.4 Statement of Changes in Equity
This explains the changes in partners’ capital which results
from earnings and losses. It also provides on how the capital or fund
has been used.
The table below shows the Summary of Projected Statement
of Owner’s Equity.
Projected Statement of Partners' Equity

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Owner A, Beg. Capital ₱ 422,521.40 ₱ 422,521.40 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40
Add: Net Income/(Loss) - 2,690.57 23,907.31 38,282.15 46,481.97 62,502.01
Total ₱ 422,521.40 ₱ 425,211.97 ₱ 447,773.99 ₱ 474,102.49 ₱ 501,443.38 ₱ 540,704.40
Less: Withdrawal - 1,345.29 11,953.65 19,141.08 23,240.98 31,251.00
Ending Balance ₱ 422,521.40 ₱ 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40 ₱ 509,453.40

Owner B, Beg. Capital ₱ 422,521.40 ₱ 422,521.40 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40
Total ₱ 422,521.40 ₱ 425,211.97 ₱ 447,773.99 ₱ 474,102.49 ₱ 501,443.38 ₱ 540,704.40
Less: Withdrawal - 1,345.29 11,953.65 19,141.08 23,240.98 31,251.00
Ending Balance ₱ 422,521.40 ₱ 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40 ₱ 509,453.40
The Projected Statement of Owner’s Equity shows that
at the end of the first year of operations, the partners have an

interest of Php423, 866.69 each. At the end of second year,
the equity of each partner has increased by Php11, 953.65. At
the end of the third year, each of the partners has equity of
Php454, 961.42. It increased by Php23, 240.98 at the end of
the fourth year and increased by Php31, 251 at the end of fifth
year.
5.5 Financial Ratios and Analysis
The researcher used ratio analysis showing the liquidity ratio, the
profitability ratio, the solvency or stability ratio and period, discounted cash
flow adequacy and investment analysis using the payback period and
internal rate of return methods in analyzing the financial performance,
position and cash flows of the proposed business for five years of
operation.
5.5.1 Liquidity Ratios
Return on Total Asset
Rate of return on total assets is an indicator of how profitable
a company is relative to its total assets. It gives an idea on how
efficient is the management in using its assets to generate its
earnings.
The figure below shows the rate of return on total assets
analysis of the proposed business.
Return on Assets
Net Income Total Assets Ratio
Year 1 5,381.14 857,487.12 0.01

Year 2 47,814.62 885,940.87 0.05
Year 3 76,564.30 927,303.35 0.08
Year 4 92,963.93 975,944.67 0.10
Year 5 125,004.01 1,041,879.54 0.12
The rate of return on total assets of the proposed business
from first to fifth year is .01, .05, .08, .10, and 0.12, respectively. It
shows that it has a high rate on the first year and continuously
decreasing up to its fifth year. As the net income increases, the
total asset also increases.
Return on Owner’s Equity
Return on equity (ROE) measures how the profitability of a
corporation in relation to stockholders’ equity.
Return on Investment
Net Income Partners Equity Ratio
Year 1 14,996.24 765,009.92 0.02

Year 2 57,457.70 793,738.77 0.07
Year 3 86,236.51 836,857.02 0.10
Year 4 102,666.46 888,190.25 0.12
Year 5 134,738.11 955,559.31 0.14
The table above shows that in every peso of common
shareholder’s equity earned about .02 this year. In other words,
shareholders saw a 20 percent return on their investment. The
proposed business’ ratio is most likely considered high for its
industry. This could indicate that the proposed business is a
growing company.
Return on Revenue
Rate of Return on Sales is used to evaluate an entity’s
operating performance. It indicates how much profit an entity
makes after paying all the expenditures to be paid.
Return on Sales
Operating
Revenue Ratio
Income
Year 1 21,423.19 1,350,328.32 0.02
Year 2 82,082.42 1,417,844.74 0.06
Year 3 123,195.02 1,488,736.97 0.08
Year 4 146,666.38 1,563,173.82 0.09
Year 5 192,483.01 1,641,332.51 0.12
The figure showed that the proposed business will have a
low rate of return on sales. This is indicating that the operating cost
will be relatively high. Although the return of sales will be low the
ratios will increase from year 1 to 5 indicating an excellent result as
it operates.
5.5.2 Liquidity Ratio

Current Ratio
Current ratio indicates the extent to which current liabilities
are covered by the current assets expected to be converted to cash
in the near future. The figure below shows the current ratio analysis
of the proposed business.
Current Ratio
Current
Current Assets Ratio
Liabilities
Year 1 210,505.53 10,783.94 19.52
Year 2 284,272.30 15,333.38 18.54
Year 3 370,962.47 18,416.83 20.14
Year 4 464,946.78 20,579.42 22.59
Year 5 576,240.56 24,015.67 23.99
The figure shows that the proposed business has an
increasing current ratio which indicates that it has enough assets to
pay its maturing obligations for five years. It indicates that the said
project business is capable in paying back its short-term assets.
Quick Ratio
Quick ratio is a financial ratio that measures liquidity using
the more liquid types of current assets. Quick assets (cash and
cash equivalents, marketable securities, and short-term
receivables) are current assets that can be converted very easily
into cash. Hence, companies with good quick ratios are favored by
creditors.
Quick Ratio
Current
Quick Asset Ratio
Liabilities
Year 1 ₱ 210,506 ₱ 10,784 19.52
Year 2 ₱ 284,272 ₱ 15,333 18.54
Year 3 ₱ 370,962 ₱ 18,417 20.14
Year 4 ₱ 464,947 ₱ 20,579 22.59
Year 5 ₱ 576,241 ₱ 24,016 23.99
The quick ratio of 19.52 shows that the proposed business
has enough current assets to cover its current liabilities. For every 1
of current liability, the company has 19.52 of quick assets to pay for
it.
5.5.3 Solvency Ratio Analysis
Debt-Equity Ratio
This is a measure of a company's financial leverage. It
indicates what proportion of equity and debt the company is using
to finance its assets.
The figure below shows the Debt to Equity Ratio Analysis of
the proposed business.
Debt Equity Ratio

Partner's
Total Liabilities Ratio
Equity
Year 1 10,783.94 765,009.92 0.01
Year 2 15,333.38 793,738.77 0.02
Year 3 18,416.83 836,857.02 0.02
Year 4 20,579.42 888,190.25 0.02
Year 5 24,015.67 955,559.31 0.03
The figure shows that the business has low debt compared
to its equity. This is because the business doesn’t engage in
borrowing funds to run the business. This is indicating that the
business depends on the owner’s equity than on debt financing.
Equity Multiplier
Equity multiplier is a risk indicator that measures the portion
of a company’s assets that is financed by stockholder's equity
rather than by debt. It is calculated by dividing a company's total
asset value by its total shareholders' equity.
Equity Multiplier
Total Asset SHE Ratio
Year 1 ₱ 775,794 ₱ 765,010 1.01
Year 2 ₱ 809,072 ₱ 793,739 1.02
Year 3 ₱ 855,274 ₱ 836,857 1.02
Year 4 ₱ 908,770 ₱ 888,190 1.02
Year 5 ₱ 979,575 ₱ 955,559 1.03
The proposed business has a ratio of 1.01. This means that
the proposed business’ debt levels are extremely low. Only 9
percent of his assets are financed by debt. Conversely, owner’s
investment finance 91 percent of his assets. This makes the
proposed business very conservative as far as creditors are
concerned.
5.6 Capital Investment Analysis
An investment analysis is a look back at previous investment
decisions and the thought process of making the investment decision. This
section involves examining and assessing economic and market trends,
earnings prospects, earnings ratios and various other indicators and
factors to determine suitable investment strategies.
5.6.1 Payback
This is the length of time required to recover the cost of an
investment.
Payback Period
Annual Cash Flow Unrecovered Cost Payback
Year 0 ₱ (845,042.80)
Year 1 68,384.22 (776,658.58) 1
Year 2 105,610.39 (671,048.20) 1
Year 3 132,893.95 (538,154.24) 1
Year 4 148,372.61 (389,781.64) 1
Year 5 178,662.83 (211,118.81) 1
Year 6 187,595.97 (23,522.83) 1
Year 7 196,975.77 173,452.94 0.119
Year 8 206,824.56 380,277.49 6.119
Payback period: 6.11 years or 6 years and 1 month
5.6.2 NPV
Net present value (NPV) is a financial metric that seeks to
capture the total value of a potential investment opportunity. The

proposed business assumes a 12% discount rate to compute NPV
of the business in 5years.
Period 1 2 3 4 5
Cash Flow 217,428.65 299,131.72 393,743.53 495,634.17 614,818.36
Discount Rate 12%
NPV ₱ 1,376,706.4845
5.6.3 IRR
Internal rate of return (IRR) is the annual rate of growth an
investment is expected to generate. It is calculated using the same
concept as NPV, except it sets the NPV equal to zero.
The figure below is the formula and computation of the
proposed business’ IRR.
Figure
IRR Formula
This means the net present value of all these cash flows (including the
negative outflow) is zero and that only the 10% rate of return is earned.
Amount
Investment (845,042.80)
Inome Year 1 5,381.14
Inome Year 5 125,004.01
IRR 16%
If the partners paid less than Php845, 042.80 for all same additional
cash flows, then their IRR would be higher than 16%. Conversely, if they
paid more than php845, 042.80, then their IRR would be lower than 16%.
Chapter 6
Socio Economic Aspect
The importance of the proposed company to society and its
contribution to the economy are discussed in this chapter. It also covers
how the proposed company would impact the economy, jobs, and
government.
6.1 Effects of the business to the society
Business generates wealth for the government on a national scale
by taxation, which is then redistributed to the services and communities
that need it the most. As a result, the planned company would have an
effect on the economy of General Santos in the following ways:
6.1.1 Effects in the Government
This research would aid the government in determining whether or
not the planned company would benefit the public. Controlling fiscal
and monetary policy is one of the most powerful ways for the
government to exert leverage over corporations. Business generates
wealth for the government on a national scale in the form of taxes,
which is then redistributed to the services and communities that
require it most.
6.1.2 Effects in the Households
The planned company would have a major effect on job
creation. A local company would provide the proposed business with

its supplies. Giving these people the opportunity to sell their wares to
a business will allow them to expand and develop as a company that
will benefit not only General Santos City, but the Philippines as a
whole. This would encourage people to start their own businesses,
improving the Philippines' economic situation by growing jobs and
profits.
6.2 Effects of the business to the Economy
The effects of the proposed company on the economy's components
are discussed in this section. Output, jobs, and market value are the three
components of an economy that will be addressed in this section.
6.2.1 Effects in Employment
By recruiting people to work for the company, the proposed
business raises the job rate. Job vacancies decreased as a result of
the Philippines' overpopulation, depriving a large number of citizens
of work and increasing the unemployment rate Due to a lack of job
openings, the proposed company encourages business
opportunities that the citizens of General Santos City need in order
to reduce unemployment rates, which would benefit not only General
Santos City but the entire Philippine economy. Employees would
benefit from the new company because it would pay them a living
wage and provide insurance to help them cope with unforeseen
events.
6.2.2 Effects in Market Value
Not only would the proposed company benefit General Santos
City, but it will also benefit the Philippines as a whole. The proposed
business would help to increase the number of potential investors in
this type of business, thus raising the Gross Domestic Product
(GDP) and Gross National Product (GNP), which are indicators of a
country's high standard of living.

EXHIBITS
Projected Statement of Financial Position

Current Assets:
Cash ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36
Prepaid Tax ₱ - ₱ - ₱ - ₱ - ₱ -
Total Current
Assets ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36
NonCurrent Assets
Property,Plant and
Equipment 693,307.80 693,307.80 693,307.80 693,307.80 693,307.80
Accumulated
Depreciation (53,249.33) (106,498.65) (159,747.98) (212,997.30) (266,246.63)
Total NonCurrent
Assets 640,058.48 586,809.15 533,559.83 480,310.50 427,061.18
Total Assets ₱857,487.12 ₱885,940.87 ₱927,303.35 ₱975,944.67 ₱ 1,041,879.54

Current Liabilies
SSS Payable ₱ 5,220.00 ₱ 5,220.00 ₱ 5,220.00 ₱ 5,460.00 ₱ 5,460.00
Philhealth 2,374.32 2,374.32 2,374.32 2,471.67 2,471.67
Pag-ibig
Payable 1,582.88 1,582.88 1,582.88 1,647.78 1,647.78
Income Tax
Payable 576.55 5,122.99 8,203.32 9,960.42 13,393.29
VAT Payable - - - - -
Total Current
Liabilities ₱ 9,753.75 ₱ 14,300.19 ₱ 17,380.52 ₱ 19,539.87 ₱ 22,972.73
Owner A, Capital ₱ 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40 ₱ 509,453.40

Owner B,Capital 423,866.69 435,820.34 454,961.42 478,202.40 509,453.40
Total Equity ₱ 847,733.37 ₱ 871,640.68 ₱ 909,922.83 ₱ 956,404.80 ₱ 1,018,906.80
Total Liabilities
and Equity ₱857,487.12 ₱885,940.87 ₱927,303.35 ₱975,944.67 ₱ 1,041,879.54
Projected Statement of Financial Performance
Service Revenue 1,350,328.32 1,417,844.74 1,488,736.97 1,563,173.82 1,641,332.51
Total Income 1,350,328.32 1,417,844.74 1,488,736.97 1,563,173.82 1,641,332.51
Less: Operating Expenses
Salaries Expense 514,436.00 514,436.00 514,436.00 535,527.88 535,527.88
SSS Contribution 41,760.00 41,760.00 41,760.00 43,680.00 43,680.00
PhilHealth Contribution 14,245.92 14,245.92 14,245.92 14,830.00 14,830.00
Pag-ibig Contribution 9,497.28 9,497.28 9,497.28 9,886.67 9,886.67
Cleaning Materials and
Supplies Expense 15,140.00 15,760.74 16,406.93 17,001.41 17,618.14
Advertising Expense 9,500.00 1,500.00 1,561.50 1,625.52 1,692.17
Depreciation Expense 53,249.33 53,249.33 53,249.33 53,249.33 53,249.33
Repair & Maintenance 35,961.49 37,435.91 38,970.78 40,568.59 42,231.90
Utilities Expense 122,021.86 127,024.75 132,232.77 137,654.31 143,298.14
Communication Expense 11,988.00 11,988.00 11,988.00 11,988.00 11,988.00
Business Permits and Licenses 10,251.13 10,278.14 10,306.49 10,336.27 10,367.53

Other Operating Expense 489,589.97 499,239.07 519,499.40 540,794.70 562,967.20
Other Expenses 5,000.00 3,123.00 5,205.00 3,225.54 5,418.41
Rent Expense 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Total Expenses 1,342,640.98 1,349,538.14 1,379,359.39 1,430,368.20 1,462,755.35
Net Income Before Tax 7,687.34 68,306.60 109,377.58 132,805.62 178,577.16
Less: Tax (30%) 2,306.20 20,491.98 32,813.27 39,841.69 53,573.15
Net Income After Tax ₱ 5,381.14 ₱ 47,814.62 ₱ 76,564.30 ₱ 92,963.93 ₱ 125,004.01
Projected Statement of Partners' Equity

Owner A, Beg. Capital ₱ 422,521.40 ₱ 422,521.40 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40
Total ₱ 422,521.40 ₱ 425,211.97 ₱ 447,773.99 ₱ 474,102.49 ₱ 501,443.38 ₱ 540,704.40
Less: Withdrawal - 1,345.29 11,953.65 19,141.08 23,240.98 31,251.00
Ending Balance ₱ 422,521.40 ₱ 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40 ₱ 509,453.40

Owner B, Beg. Capital ₱ 422,521.40 ₱ 422,521.40 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40
Total ₱ 422,521.40 ₱ 425,211.97 ₱ 447,773.99 ₱ 474,102.49 ₱ 501,443.38 ₱ 540,704.40
Less: Withdrawal - 1,345.29 11,953.65 19,141.08 23,240.98 31,251.00
Ending Balance ₱ 422,521.40 ₱ 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40 ₱ 509,453.40
Projected Statement of Cash Flows
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net income ₱ - ₱ 5,381.14 ₱ 47,814.62 ₱ 76,564.30 ₱ 92,963.93 ₱ 125,004.01
Add: Depreciation Expense 53,249.33 53,249.33 53,249.33 53,249.33 53,249.33
Cash Income ₱ - ₱ 58,630.47 ₱ 101,063.94 ₱ 129,813.63 ₱ 146,213.26 ₱ 178,253.34
Operating Activities:
(Increase)/Decrease
Increase in SSS Payable 5,220.00 240.00
Increase in PhilHealth Payable 2,374.32 (0.00) (0.00) 97.35
Increase in PAG-IBIG Payable 1,582.88 64.90
Increase in Income Tax Payable 576.55 4,546.44 3,080.32 1,757.10 3,432.87
Net cash Provided by Operating Activities ₱ - ₱ 68,384.22 ₱ 105,610.39 ₱ 132,893.95 ₱ 148,372.61 ₱ 181,686.20
Investing Activities:
(Increase)/Decrease
Increase in PPE ₱ (693,307.80) ₱ (693,307.80)
Net Cash Provided by Investing Activities ₱ (693,307.80) ₱ (693,307.80) ₱ - ₱ - ₱ - ₱ -
Financing Activities:
Increase/(Decrease)
Partners' Investment ₱ 845,042.80 ₱ 845,042.80
Partners' Withdrawal ₱ (2,690.57) ₱ (23,907.31) ₱ (38,282.15) ₱ (46,481.97) ₱ (62,502.01)
Net cash Provided by Financing Activities ₱ 845,042.80 ₱ 842,352.23 ₱ (23,907.31) ₱ (38,282.15) ₱ (46,481.97) ₱ (62,502.01)
Net increase/decrease in cash ₱ 151,735.00 ₱ 217,428.65 ₱ 81,703.08 ₱ 94,611.80 ₱ 101,890.64 ₱ 119,184.20

Add: Cash, Beginning 217,428.65 299,131.72 393,743.53 495,634.17
Cash, Ending ₱ 151,735.00 ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36
SCHEDULES
Projected Product Revenue
No. of Percentage
No. of Selling Total Sales, net
visitor per of willing Total Vat
orders Price of Vat
year respondents
PRODUCTS
Buko Ice Candy 44,237 29% 12,718.08 ₱ 10.00 ₱ 127,180.80 ₱ 13,626.51 ₱ 127,180.80
Buko Salad 44,237 16% 7,077.89 ₱ 50.00 ₱ 353,894.40 ₱ 353,894.40 ₱ 353,894.40
Coconut Ball 44,237 13% 5,750.78 ₱ 15.00 ₱ 86,261.76 ₱ 86,261.76 ₱ 86,261.76
Coconut Macaroons 44,237 20% 8,847.36 ₱ 40.00 ₱ 353,894.40 ₱ 353,894.40 ₱ 353,894.40
Buko Juice 44,237 14% 6,193.15 ₱ 10.00 ₱ 61,931.52 ₱ 6,635.52 ₱ 61,931.52
Buko Halo Halo 44,237 8% 3,538.94 ₱ 85.00 ₱ 300,810.24 ₱ 32,229.67 ₱ 300,810.24
Buko Pie 44,237 1% 442.37 ₱ 150.00 ₱ 66,355.20 ₱ 7,109.49 ₱ 66,355.20
Total Sales Revenue ₱ 1,350,328.32 ₱ 1,350,328.32
Total ₱ 1,350,328.32 ₱ 1,350,328.32
Products Direct Materials Overhead Total Cost

Buko ice Candy 0.10 1.38 1.48
Buko Salad 25.00 1.38 26.38
Coconut Ball 3.50 1.38 4.88
Coconut Macaroons 12.00 1.38 13.38
Buko Juice 0.50 1.38 1.88
Buko Halo Halo 25.00 1.38 26.38
Buko Pie 50.00 1.38 51.38
Overhead
Products Total no. of Percentage No. of orders Factory Total Factory
transactions Overhead Overhead
Buko ice 44,238.80 29% 12,718.08 1.38 17,567.31
Candy
Buko salad 44,238.80 16% 7,077.89 1.38 9,776.59
Coconut 44,238.80 13% 5,750.78 1.38 7,943.48
Ball
Coconut 44,238.80 20% 8,847.36 1.38 12,220.74
Macaroons
Buko Juice 44,238.80 14% 6,193.15 1.38 8,554.52
Buko Halo 44,238.80 8% 3,538.94 1.38 4,888.29
Halo
Buko Pie 44,238.80 1% 442.37 1.38 611.04
Total 309,657.60 101% 44,568.58 61,561.96
Projected of Raw Materials

No. of Orders Cost Year 1
Products

Buko Ice Candy 12,718 ₱ 1.48 18,839.12
Buko Salad 7,078 ₱ 26.38 186,723.79
Coconut Ball 5,751 ₱ 4.88 28,071.22
Coconut Macaroons 8,847 ₱ 13.38 118,389.06
Buko Juice 6,193 ₱ 1.88 11,651.09
Buko Halo Halo 3,539 ₱ 26.38 93,361.89
Buko Pie 442 ₱ 51.38 22,729.44
Total ₱ 479,765.61
*Increased by 4.1% per year due to inflation
Projected Salaries Expense

Year 1-3
No. of Rate per Monthly Total Annual Total 13th-month Total Salaries
Position EE day Salary Annual Salary Salary Pay Expense
Manager/Cas
hier 1 ₱ 500.00 ₱ 13,000.00 ₱ 156,000.00 ₱ 156,000.00 ₱ 13,000.00 169,000.00
Head Cook 1 ₱ 400.00 10,400.00 ₱ 124,800.00 ₱ 124,800.00 ₱ 10,400.00 135,200.00

Kitchen
Assistant 1 ₱ 311.00 8,086.00 ₱ 97,032.00 ₱ 97,032.00 ₱ 8,086.00 105,118.00
Waitress 1 ₱ 311.00 8,086.00 ₱ 97,032.00 ₱ 97,032.00 ₱ 8,086.00 105,118.00

Total ₱ 39,572.00 ₱ 474,864.00 ₱ 474,864.00 ₱ 39,572.00 ₱ 514,436.00
Year 4-5
No. of Rate per Monthly Total Annual Total 13th-month
Position EE day Salary Annual Salary Salary Pay Salaries Expense
Manager/Cas
hier 1 ₱ 520.50 ₱ 13,533.00 ₱ 162,396.00 ₱ 162,396.00 ₱ 13,533.00 175,929.00
Head Cook 1 ₱ 416.40 ₱ 10,826.40 ₱ 129,916.80 ₱ 129,916.80 ₱ 10,826.40 140,743.20

Kitchen
Assistant 1 ₱ 323.75 ₱ 8,417.53 ₱ 101,010.31 ₱ 101,010.31 ₱ 8,417.53 109,427.84
Waitress 1 ₱ 323.75 ₱ 8,417.53 ₱ 101,010.31 ₱ 101,010.31 ₱ 8,417.53 109,427.84
Total ₱ 41,194.45 ₱ 494,333.42 ₱ 494,333.42 ₱ 41,194.45 ₱ 535,527.88

Projected SSS, HDMF and PhilHealth Expense
Year 1-3
No. Monthly SSS PHILHEALTH PAGIBIG
Position of Salary
EE ER ER ER
Manager/Cashier 1 ₱ 13,000.00 ₱ 13,920.00 ₱ 4,680.00 ₱ 3,120.00
Head Cook 1 ₱ 10,400.00 ₱ 11,040.00 ₱ 3,744.00 ₱ 2,496.00
Kitchen Assistant 1 ₱ 8,086.00 ₱ 9,120.00 ₱ 2,910.96 ₱ 1,940.64
Waitress 1 ₱ 8,086.00 ₱ 7,680.00 ₱ 2,910.96 ₱ 1,940.64
Total 39,572.00 41,760.00 14,245.92 9,497.28
Year 4-5
No. Monthly SSS PHILHEALTH PAGIBIG
Position of Salary
EE ER ER ER
Manager/Cashier 1 ₱ 13,533.00 ₱ 14,400.00 ₱ 4,871.88 ₱ 3,247.92
Head Cook 1 ₱ 10,826.40 ₱ 11,520.00 ₱ 3,897.50 ₱ 2,598.34
Kitchen Assistant 1 ₱ 8,417.53 ₱ 9,600.00 ₱ 3,030.31 ₱ 2,020.21
Waitress 1 ₱ 8,417.53 ₱ 8,160.00 ₱ 3,030.31 ₱ 2,020.21
Total 41,194.45 43,680.00 14,830.00 9,886.67

Projected SSS, HDMF, and PhilHealth Payable
Year 1-3
SSS PHILHEALTH PAGIBIG
Position No. of EE Monthly Salary
ER EE ER EE ER EE
Manager/Cashier 1 ₱ 13,000.00 ₱ 1,160.00 ₱ 580.00 ₱ 390.00 ₱ 390.00 ₱ 260.00 ₱ 260.00
Head Cook 1 ₱ 10,400.00 ₱ 920.00 ₱ 460.00 ₱ 312.00 ₱ 312.00 ₱ 208.00 ₱ 208.00
Kitchen Assistant 1 ₱ 8,086.00 ₱ 760.00 ₱ 380.00 ₱ 242.58 ₱ 242.58 ₱ 161.72 ₱ 161.72
Waitress 1 ₱ 8,086.00 ₱ 640.00 ₱ 320.00 ₱ 242.58 ₱ 242.58 ₱ 161.72 ₱ 161.72
Total ₱ 39,572.00 ₱ 3,480.00 ₱ 1,740.00 ₱ 1,187.16 ₱ 1,187.16 ₱ 791.44 ₱ 791.44
Total Payable ₱5,220.00 ₱2,374.32 ₱1,582.88
Year 4-5
SSS PHILHEALTH PAGIBIG
Position No. of EE Monthly Salary
ER EE ER EE ER EE
Manager/Cashier 1 ₱ 13,533.00 ₱ 1,200.00 ₱ 600.00 ₱ 405.99 ₱ 405.99 ₱ 270.66 ₱ 270.66
Head Cook 1 ₱ 10,826.40 ₱ 960.00 ₱ 480.00 ₱ 324.79 ₱ 324.79 ₱ 216.53 ₱ 216.53
Kitchen Assistant 1 ₱ 8,417.53 ₱ 800.00 ₱ 400.00 ₱ 252.53 ₱ 252.53 ₱ 168.35 ₱ 168.35
Waitress 1 ₱ 8,417.53 ₱ 680.00 ₱ 340.00 ₱ 252.53 ₱ 252.53 ₱ 168.35 ₱ 168.35
Total ₱ 41,194.45 ₱ 3,640.00 ₱ 1,820.00 ₱ 1,235.83 ₱ 1,235.83 ₱ 823.89 ₱ 823.89
Total Payable ₱5,460.00 ₱2,471.67 ₱1,647.78

SSS per ER (SEE SCHED. ) 41,760.00 41,760.00 41,760.00 43,680.00 43,680.00
SSS per EE (SEE SCHED. ) 20,880.00 20,880.00 20,880.00 21,840.00 21,840.00
Total SSS per EE and ER 62,640.00 62,640.00 62,640.00 65,520.00 65,520.00
Add:SSS Payable Beg. - 5,220.00 5,220.00 5,220.00 5,460.00
Less:Remittance for the year (SEE SCHED. ) (57,420.00) (62,640.00) (62,640.00) (65,280.00) (65,520.00)
SSS Payable for the year 5,220.00 5,220.00 5,220.00 5,460.00 5,460.00

PhilHealth per ER (SEE SCHED. ) 14,245.92 14,245.92 14,245.92 14,830.00 14,830.00
PhilHealth per EE (SEE SCHED. ) 14,245.92 14,245.92 14,245.92 14,830.00 14,830.00
Total PhilHealth per EE and ER 28,491.84 28,491.84 28,491.84 29,660.01 29,660.01
Add:PhilHealth Payable Beg. - 2,374.32 2,374.32 2,374.32 2,471.67
PhilHealth Payable for the year 2,374.32 2,374.32 2,374.32 2,471.67 2,471.67

PAG-IBIG per ER (SEE SCHED. ) 9,497.28 9,497.28 9,497.28 9,886.67 9,886.67
PAG-IBIG per EE (SEE SCHED. ) 9,497.28 9,497.28 9,497.28 9,886.67 9,886.67
Total PAG-IBIG per EE and ER 18,994.56 18,994.56 18,994.56 19,773.34 19,773.34
Add:PAG-IBIG Payable Beg. - 1,582.88 1,582.88 1,582.88 1,647.78
PAG-IBIG Payable for the year 1,582.88 1,582.88 1,582.88 1,647.78 1,647.78
Projected Cleaning Materials and Supplies Expense
Sanitation and Maintenance Unit Cost Total Cost, net
Qty (inclusive of Input Vat Year 1
Expense of Vat
VAT)
Dustpan 2 200.00 21.43 400.00 400.00
Dust Mop 1 290.00 31.07 290.00 290.00
Floor Sweeps 1 105.00 11.25 105.00 105.00
Waste Bin 4 150.00 16.07 600.00 600.00
Detergent Soap 15 45.00 4.82 675.00 675.00
Hand Soap 15 75.00 8.04 1,125.00 1,125.00
Bathroom Tissue 20 98.00 10.50 1,960.00 1,960.00
Total ₱ 5,155.00 ₱ 5,155.00
Kitchen Tools Year 1
Glass 25 ₱ 50.00 ₱ 5.36 ₱ 1,250.00 ₱ 1,250.00
Plates 25 50.00 ₱ 5.36 ₱ 1,250.00 ₱ 1,250.00
Fork 25 50.00 ₱ 50.00 ₱ 1,250.00 ₱ 1,250.00
Spoon 25 50.00 ₱ 5.36 ₱ 1,250.00 ₱ 1,250.00
Total ₱ 5,000.00 ₱ 5,000.00
Office and Counter Supplies Year 1
Cutter 2 ₱ 15.00 ₱ 1.61 ₱ 30.00 ₱ 30.00
Scissors 2 15.00 1.61 30.00 30.00
Tape 10 10.00 1.07 100.00 100.00
Tape Dispenser 1 95.00 10.18 95.00 95.00
Stapler 1 65.00 6.96 65.00 65.00
Staple Wire 10 35.00 3.75 350.00 350.00
Puncher 1 55.00 5.89 55.00 55.00
Filers 4 195.00 20.89 780.00 780.00
Record Book 6 80.00 8.57 480.00 480.00
Receipts Sheets 20 15.00 1.61 300.00 300.00
Bond Paper (Long) 10 150.00 16.07 1,500.00 1,500.00
Bond Paper (Short) 10 120.00 12.86 1,200.00 1,200.00
Total ₱ 4,985.00 ₱ 4,985.00
TOTAL Cleaning Materials and Supplies Expense ₱ 15,140.00 ₱ 15,140.00
**** Allowance for cleaning materials and supplies expense will increase by 4.1% each year due to inflation.
Projected Advertising Expense
Total
Quantit
Particulars Unit Cost Cost, Net Input Vat
y
of Vat Year 1
₱ ₱
Tarpaulin 10 150.00 ₱1,500.00 160.71 ₱1,500.00
Social
Media 1
Local Print ₱ ₱
Media 1 8,000.00 ₱8,000.00 857.14 ₱8,000.00
TOTAL 9,500.00 ₱9,500.00

**** Allowance for advertising expense will increase by 4.1% each year due to inflation.
Repairs and Maintenance

Total Cost, Net of
Particulars Quantity Input Vat Year 1
Vat
Building 1 395,655.00 42,391.61 27,695.85
Printer 1 2,990.00 320.36 149.50
Telephone 1 1,700.00 182.14 85.00
Computer Set 1 17,699.00 1,896.32 884.95
Air Conditioner 6 52,794.00 5,656.50 2,639.70
Electric Cash Register 2 14,980.00 1,605.00 749.00
electric fan 3 4,590.00 491.79 229.50
Stainless Steel Tables 1 13,113.10 1,404.98 655.66
Dining Set 6 39,000.00 4,178.57 1,950.00
Office Chair 1 2,150.00 230.36 107.50
Office Desk 1 3,795.00 406.61 189.75
Lounge Chair 2 12,501.70 1,339.47 625.09
Total ₱ 35,961.49
Assumption: Repairs and maintenance will be 5% of the cost of the fixed assets during the first
year and will be increased by 4.1% in the next years.
Projected Utilities Expense Projected Utilities Expense
Monthly
Particulars Qty Daily Usage Yearly Usage
Machinery Quantity Watt per hour Operating Hour Daily Usage Kilowatts Total Kilowatts Rate Usage
Refrigerator 1 800 8 6400 6.4 6.4 8.6 Refrigerator 1 ₱ 55.04 ₱ 1,431.04 ₱ 17,172.48
Freezer 1 2000 8 16000 16 16 8.6 Freezer 1 ₱ 137.60 ₱ 3,577.60 ₱ 42,931.20
ElectricCash Register 2 50 8 400 0.4 0.8 8.6 ElectricCash Register 2 ₱ 6.88 ₱ 178.88 ₱ 2,146.56
Spli Typ Air-conditiober 4 600 8 4800 4.8 19.2 8.6 Spli Typ Air-conditiober 4 ₱ 165.12 ₱ 4,293.12 ₱ 51,517.44
Computer Set 1 300 8 300 0.3 0.3 8.6 Computer Set 1 ₱ 2.58 ₱ 67.08 ₱ 804.96
Flourescent Lights 10 6 8 48 0.048 0.48 8.6 Flourescent Lights 10 ₱ 4.13 ₱ 107.33 ₱ 1,287.94
Post Bulb Lights 10 5 8 40 0.04 0.4 8.6 Post Bulb Lights 10 ₱ 3.44 ₱ 89.44 ₱ 1,073.28
Total Electricity Consumption Total Electricity Consumption ₱ 116,933.86
Total Water Consumption Vat (30%) ₱ 35,080.16
TOTAL Total Water Consumption 5088
Total ₱ 122,021.86
Projected Communication Expense

Annual
Monthly
Particulars Input Vat Cost, Net of Year 1
Cost
Vat
Internet and ₱ ₱ ₱ ₱
Telephone Expense 999.00 107.04 11,988.00 11,988.00
Projected Other Expenses
Total
Particulars Quantity Unit Cost Input Vat Cost, Net
of Vat
₱ ₱ ₱
Fire Extinguisher 1 2,000.00 214.29 2,000.00
₱
Flourescent Lights 10 125.00 13.39 1,250.00
₱
Post Bulb Lights 10 175.00 18.75 1,750.00
₱
TOTAL 5,000.00
Fire Extinguishers will be change after 2 years.
Flourescent lights will be change annually.
Expenses will increase 4.1% due to inflation
Projected Rent Expense
Cost
₱
Rent Expense 10,000.00
Assumptions:
Constant rent expense for the 5 consecutive years.
Projected Depreciation Expense
Particulars Total Cost Total Annual Depreciation
Buildings ₱ 395,655.00 ₱19,782.75
Store and Office

Equipment ₱ 210,587.00 ₱17,031.90
Furniture and
Fixtures ₱ 51,059.80 ₱3,673.83
Total ₱ 657,301.80 ₱40,488.48

Unit Cost Total Cost, net of
Particulars Qty Input Vat
(Inclusive of Vat) Vat
Buildings 1 395,655.00 42,391.61 395,655.00
Total ₱ 395,655.00
Equipment
Refrigerator 1 49,998.00 5,356.93 49,998.00
Freezer 1 19,950.00 2,137.50 19,950.00
ElectricCash Register 2 26,097.00 2,796.11 52,194.00
Spli Typ Air-conditiober 2 25,428.00 2,724.43 50,856.00
Computer Set 1 37,589.00 4,027.39 37,589.00
Oven 1 10,598.00 1,135.50 10,598.00
Ice Crusher 1 1,658.00 177.64 1,658.00
Triple Burner 1 4,250.00 455.36 4,250.00
Total ₱ 227,093.00
Furniture and Fixtures
Stainless Steel Tables 1 13,113.10 1,404.98 13,113.10
Dining Set 6 6,500.00 696.43 39,000.00
Office Chair 1 2,150.00 230.36 2,150.00
Office Desk 1 3,795.00 406.61 3,795.00
Lounge Chair 2 6,250.85 669.73 12,501.70
Total ₱ 70,559.80
Total Property, Plant Equipment ₱ 693,307.80
Office Equipment
Estimated
Particulars Quantity Unit Cost Total Cost Useful Life Yearly Depreciation
Refrigerator 1 49,998.00 49,998.00 15 3,333.20
Freezer 1 19,950.00 19,950.00 15 1,330.00

ElectricCash Register 2 26,097.00 52,194.00 10 5,219.40
Spli Typ Air-conditiober 2 25,428.00 50,856.00 15 3,390.40
Computer Set 1 37,589.00 37,589.00 10 3,758.90
Oven 1 10,598.00 10,598.00 1 10,598.00
Ice Crusher 1 1,658.00 1,658.00 5 331.60
Triple Burner 1 4,250.00 4,250.00 8 531.25
Total Cost 227,093.00 28,492.75
Furniture and Fixtures

Particulars Qty. Unit Cost Total Cost Estimated Useful Life Yearly
Stainless Steel Tables 1 13,113.10 13,113 20 656
Dining Set 6 6,500.00 39,000 15 2,600
Office Chair 1 2,150.00 2,150 10 215
Office Desk 1 3,795.00 3,795 15 253
Lounge Chair 2 6,250.85 12,502 10 1,250
Total Cost 70,560 4,974
Projected Income Tax Payable
Cost
Gross Income ₱ 1,350,328.32
Less: Allowable Deductions
Salaries Expense (514,436.00)
SSS Contribution (41,760.00)
PhilHealth Contribution (14,245.92)
Pag-ibig Contribution (9,497.28)
Cleaning Materials and Supplies
Expense (15,140.00)
Advertising Expense (9,500.00)
Depreciation Expense (53,249.33)
Repair & Maintenance (35,961.49)
Utilities Expense (122,021.86)
Communication Expense (11,988.00)
Business Permits and Licenses (10,251.13)
Other Operating Expense (489,589.97)
Other Expenses (5,000.00)
Rent Expense (10,000.00)
Total Taxable Income 7,687.34
Income Tax Due 2,306.20
Tax Credits:
Tax Payment for the previous (3) (1,729.65)
Income Tax Payable ₱ 576.55
Projected Pre-Operating Expenses
Advertising Expense Quantity Unit Cost Total Cost Total
Tarpaulin 10 ₱ 120.00 ₱ 1,200.00
Social Media 1 - -
Local Print Media 1 ₱ 7,500.00 ₱ 7,500.00
Leaflets 2000 ₱ 0.25 ₱ 500.00 ₱9,200.00
Trainings and Seminars ₱ 10,000.00
Permits and Licenses
Business Location Clearance ₱ 75.00
Sanitary Health Clearance ₱ 60.00
Fire Safety Clearance ₱ 460.00
CENRO ₱ 500.00
SEC Registration ₱ 123,320.00
Brgy. Clearance ₱ 60.00
Water Permit ₱ 5,000.00
Garbage Collection Fee ₱ 500.00
Community Tax ₱ -
Permit Fee ₱ 1,500.00
Certificate of Tax Payment ₱ 30.00
Confirmation/Certificate/Verification/Clearance Fee ₱ 30.00
Building Permit fee ₱ -
Recording Fee ₱ 500.00
DTI Permit ₱ 500.00 ₱ 132,535.00
Miscellaneous Expense ₱ -
Total ₱ 151,735.00
Projected Permits and Licenses

Permits and Licenses Year 1
₱
Business Location Clearance 75.00
Sanitary Health Clearance 60.00
Fire Safety Clearance 460.00
CENRO 500.00
Brgy. Clearance 60.00
Water Permit 5,000.00

Garbage Collection Fee 500.00
Community Tax 1,036.13
Permit Fee 1,500.00

Certificate of Tax Payment 30.00
Confirmation/Certificate/Verification/Clearance
Fee 30.00
Recording Fee 500.00
DTI Permit 500.00
₱
TOTAL 10,251.13
Assumptios: Expenses for permits and Licenses will be assumed constant over the next 5 years for
simplicity.
Building permit fee will only be expensed in the first year.

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Ramon Magsaysay Memorial Colleges

A FEASIBILITY STUDY OF PUTTING UP A

Rein Rose D. Yusay

This chapter contains the general description and business outline of

the objectives, scope and delimitation as well as the significance of the

1.1 Background of the Study

Coconut is a versatile plant that can be used in a variety of ways.

Almost every portion of a freshly grown coconut, edible and non-edible, is

various pieces is used for a particular, and often multiple, product. As a

Coconuts are a versatile plant that can be used to make a variety of

is widely used in South Indian cuisine. Coconut honey can be made by

extracting high-quality oil, protein, and carbohydrates from grated wet

extracted is used as cattle food. The dried coconut meat is known as

copra, and it is the source of coconut oil, which is used in massive

amounts to make baking and confectionery fats. Desiccated coconut is a

common ingredient in the chocolate and confectionery industries. The hard

Polynesians and many Asians. It's used in cooking, as a flavoring, and in

beverages. Young people today are heavily reliant on conventional foods.

Coconut has a strong chance of growing in popularity in this market.

Coconut water – also known as buko juice or coco water – as one of

Philippines’ most promising new export opportunities.

“One Stop Shop Food Coconut Products” is a business that sells

coconut-based food products. The researcher chose coconut since these

fruits is a versatile plant and it is abundant in the locale of the study.

The Philippine Coconut Authority (PCA), the government’s agency

or any government agency. This is because the domestic copra price is

dependent to the coconut oil price in the global market.

The global coconut oil price, on the other hand, is determined or

As such, its price is greatly affected by the movement of prices of other

internationally-traded vegetable oils (35%) and soybean oil, the second

biggest vegetable oil (29%).

Market growth is propelled by the rise in demand for coconut water

as an energy drink. Active and health conscious consumers have shifted

their preference toward natural alternatives to caffeinated and sugar-based

drink is growing rapidly due to its nutritional properties such as electrolytes

Increase in use of coconut-based products in food and beverage

applications is expected to drive the market for coconut products in the

future. Coconut products are widely used as ingredients in variety of

processed food products such as cookies, cakes, pies, soups, salads,

milkshakes, and ice cream. With growth in consumption of processed food

products is expected to grow at a significant rate in near future.

1.3 Project Description

1.3.1 Proposed name of the Business and Logo

Shop Food Coconut Products”. The logo of the business is simple. It

used by the proposed business.

The proposed business offers coconut-based food products,

mostly deserts and afternoon snacks. The products are guaranteed

1.3.3 Major Consumers

The major consumers of the proposed business will be those

1.4 Rationale of the Study

agricultural products is coconut. The researcher studies the feasibility of

putting up a “One Stop Shop Food Coconut Products” store. The

because it has potential for the market.

PRODUCTS DESCRIPTION PRICE

Small ice pop made from milk 5.00

sweet, moist, coconut

mini cupcakes that are

Buko Juice Large 15.00

young coconut meat in a

The study aims to provide reliable information about the aspects of