BEETEE

KMMGE Enterprise

A Feasibility Study

Presented to the Faculty of the

College of Business and Accountancy

In Partial Fulfilment of the Requirements

for the Degree of

BATCHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN FINANCIAL MANAGEMENT

Perol, Micah Elijah M.

Belen, Mark Frances B.
Cortezano, Geno P.
Bachinicha, Melissa P.
Badong, Kate

March 2019
 University of Nueva Caceres
City of Naga

COLLEGE OF BUSINESS AND ACCOUNTANCY

C E R T I F I C A T I O N

This is to certify that this Feasibility Study entitled,

“ BeeTee,” prepared and submitted by MICAH ELIJAH PEROL, MARK
FRANCES BELEN, GENO CORTEZANO, MELISSA BACHINICHA and KATE
BADONG, has been examined, edited and found to be in
accordance with the suggestions / recommendations of the
panel of examiners.

CERILA C. SANCHEZ, CPA, MBA

Adviser

MS. CERILLA C. SANCHEZ, CPA, MBA

Dean
 APPROVAL SHEET

This Feasibility Study entitled: “ BeeTee, “ prepared

and submitted by MICAH ELIJAH PEROL, MARK FRANCES BELEN, GENO
CORTEZANO, MELISSA BACHINICHA and KATE BADONG, in partial
fulfillment of the requirements for the degree of BACHELOR OF
SCIENCE IN BUSINESS ADMINISTRATION, has been presented for
critiquing, review and editing by the faculty of the College
of Business and Accountancy, and is given a grade of _________
on ____________.

CERILA C. SANCHEZ
Adviser

GLORIA O.LABUANAN, MBA

Editor

-----------------------------------------------------------
PANEL OF EXAMINERS

MARIA ALIDA MORES, PhD

Chairman

NINFA Y. ALIPANTE GIL JOSE SARTE, MBA

Member Member

-----------------------------------------------------------
Accepted and approved in partial fulfillment of the
requirements for the degree of Bachelor of Science in Business
Administration.

CERILA C. SANCHEZ, CPA, MBA

Dean
 ACKNOWLEDGEMENT

This Feasibility Study has been made possible through

the guidance, supervision, cooperation and participation of

the following.

To our parents who guided and gave us financial support,

and words of wisdom that inspired us in preparing this

Feasibility Study.

To our beloved adviser, Ms. Cerila C. Sanchez who was

able to find time to share her knowledge and unfailing support

during the critical stages of the project.

Sincerest gratitude is also extended to our respondents

for providing the necessary result for this study and together

we sincerely acknowledge and give thanks to the persons

mentioned above who have brought success to this Feasibility

Study. We are very grateful to them for this wonderful

accomplishment.

And most of all, to our Almighty Lord God for His

guidance, enduring love and for enlightening our minds and

for giving us the courage and strength to surpass the

difficulties we encountered while making this study. Thank

you.
 DEDICATION

The proponents would like to dedicate this Feasibility

Study to their supportive parents who gave them moral and

financial support.

Thank you for making this study possible.

 TABLE OF CONTENTS

Title Page i

Certification ii

Approval Sheet iii

Acknowledgement iv

Dedication v

Table of Contents vi

List of Figures x

EXECUTIVE SUMMARY

Name and Location of the business 1

Marketing Aspect 1

Management Aspect 2

Technical Aspect 3

Financial Aspect 3

Socio- Economic Aspect 4

CHAPTER I: MARKETING STUDY

Product Description 5

Market Description 5

Demand Analysis 6
 Supply Analysis 9

Analysis of Competitor 10

Marketing Plan 11

Estimated Sales Volume 14

CHAPTER II: MANAGEMENT STUDY

Vision-Mission-Objectives 15

SWOT Analysis

Pre- Operating Procedures 16

Operating Period

Business Profile

Ownership

Organizational Chart 22

Job Description and Specification 23

Time Table

CHAPTER III: TECHNICAL STUDY

Production Process 27

Raw Materials and supplies requirement 28

Inventory Management 28

Production schedule 35
 List of Machineries and Equipment 35

Plant Layout 39

Quality Control 39

Waste Management 40

List of Equipment

CHAPTER IV: FINANCIAL STUDY

Financial Assumptions and Projections 41

Capital Requirements 41

Source of Capital 42

Project Cost 42

Sales Data 44

Operating Expense 44

Supporting Schedules (Schedule 1-4) 45

Projected Income Statement for three years 47

Projected Cash Flow for three years 49

Projected Balance Sheet for three years 53

Financial Analysis 54
CHAPTER V: SOCIO-ECONOMIC STUDY

Social Benefits 56

Environmental Benefits 57

Economic Benefits 56
List of Figures

Figure 1 - Awareness of respondents about the existency

of the product

Figure 2 - Comfortability of the product

Figure 3 – Purchasability of the product

Figure 4 – Type of material used

Figure 5 – Basis of Buying

Figure 6 – Facebook Page of the product

Figure 7 – Packaging of the product

Figure 8 – Organizational Chart

 EXECUTIVE SUMMARY
BEETEE

Name of the Product

The BeeTee belt is made of used bicycle tire. The business

location is in Concepcion Grande, Naga City.

Brief Description of the Product

The BeeTee is inspired by commonly used belts that

enhance the outfit and tighten loose pants. BeeTee is designed

for these particular purposes and helps the environment as

well.

Highlight of the Proposed Business

BeeTee comes from the first letter of “Belt” and “Tire”

which is B and T. BeeTee is a partnership form of business

composed of the following members: Micah Elijah Perol, Mark

Frances Belen, Geno Cortezano, Melissa Bachinicha and Kate

Badong. All income goes to every partner and salaries of the

employees.

The belt making project uses used bicycle tires and

buckles that attracts and captivates the consumers.

Summary and Findings or Results of the Study

MARKETING ASPECT

The target markets of BeeTee are the Clothing and

Accessories Stores in Naga City. They are commercial

establishments offering different products especially belt

which is considered as an important accessory by customers.

That consumers are truly satisfied of the product because of

its benefits and affordable price.

MANAGEMENT ASPECT

The owners take care of the pre-operating requirements

such as the permits, promotions, business plan, and hiring of

employees to ensure the sound operation of the business. There

is 1 manager and 3 department heads. The General Manager has

the highest share of profit and over-all in-charge of the

business. The partners help the General Manager to implement

strategies. The business has its vision and mission, the SWOT

and TOWS analysis and objectives.

The target month of the proponent to start the business

operation is in March 2019.

As part of the preparation, the owners coordinated with

the Government Agencies such as the Securities and Exchange

Commission, Registration at the Local Government and

Barangay, Bureau of internal Revenue, PAG-IBIG, Social

Security System, and Philhealth.

TECHNICAL ASPECT

There are five steps in the production process of BeeTee:

(1) Purchase of raw materials (2) Preparation of the equipment

(3) Production of BeeTee (4) Packaging of BeeTee (5) Finished

product. Its plant location is at Concepcion Grande, Naga

City. The equipment are sanitized before and after use to

ensure that the final products are safe and hygienic. The raw

materials are bought from the suppliers. The production

schedule is 5 days in a week from Monday to Friday.

FINANCIAL ASPECT

SOCIO-ECONOMIC ASPECT

The business contributes in many ways to the society

such as revenue generation for the government, employment,

environment preservation and protection, and improvement of

the standard of living of the people.

 CHAPTER I

MARKETING STUDY

This chapter discusses the marketing aspects of the

business. The marketing aspect covers the following: The

product description, market description, target market,

demand and supply analysis and marketing plan.

Product Description

BeeTee is a belt that is made of recycled bicycle tires.

It is a very durable material that lasts for many years. The

treads of tires are used to manufacture the product. They are

divided to get the tread which is used to make the belt. The
supply of tires are from bike shops, vulcanizing shops, and

junk shops. A buckle is used to tighten the belt which is

also bought from the suppliers.

Market Description

BeeTee’s target market are 10 clothing establishments in

Naga City. Advertising is one of strategies used in businesses

and industries. This is one of the strategies used to

introduce and promote the product to the customers especially

that people nowadays are more engaged in social media. Once

the advertisement catches the attention of the customers,

there is a possibility that they will inquire about the

product which is a sign of possible sale.

Demand Analysis

Identifying the Demand of the business in order to

respond to customer needs and wants is necessary. The BeeTee

conducted a survey in clothing establishments in Naga City to

determine the potential target market. The survey which

consisted of five questions was given to 10 establishments in

Naga City specifically, Unitop, Novo, Hong Enterprises,

Garmas, U.N Commercial, 99.9 Boutique, 101 Center, Angena

Trading, Master Square, and Power Plus Store with a total of

10 respondents.
1. Have you heard of a belt made of used bicycle tire?

Awareness

0%

100%

YES NO

Figure 1 – Awareness of respondents about the

existence of the product

Figure 1 shows that 100% of the respondents is

not aware of the existence of the product because the
product is new in the market.

2. Do you think that this product is comfortable to use?

Comfortability

NO
30%

YES
70%

YES NO

Figure 2 – Comfortability of the product

Figure 2 shows that 70% of the respondents think

that the product is comfortable to use because the
material used is flexible.
3. Are you willing to be a distributor of the BeeTee at a
price of P100?

Purchasability
No
20%

Yes
80%

Yes No

Figure 3 – Purchasability of the product

Figure 3 shows that 80% of the respondents is

willing to be a distributor of the product, 30% is
unlikely to buy the product.

4. How many pieces of belts are you willing to distribute

each month?
TABLE 1

Name of Store Quantity

Unitop 180
Novo 150
Hong Enterprises 180
U.N Commercial 80
99.9 Boutique 170
101 Center 200
Angena Trading 150
Master Square 170
Total: 1280

5. What type of material used in belts is leading in your

store?
 Type of Material Used
Plastic
10%
Cloth
15%

Genuine Leather
Synthetic Leather 60%
15%

Genuine Leather Synthetic Leather Cloth

Figure 4 – Type of material used

Figure 4 shows that 60% of the most commonly bought

is genuine leather belts, 15% is synthetic leather,15%
is cloth and 10% is plastic.

6. What is your basis when you buy a belt?

Basis of Buying

Price
30%

Quality
60%
Design
10%

Price Design Quality

Figure 5 – Basis of buying

 Figure 5 shows that 60% of the respondents is
focused on the quality of the product when buying, 30%
in the price, and 10% in the design.

Supply Analysis

In terms of supply of the raw materials, the main

materials used in the product are bicycle tire, and buckle

which are available in local stores in Naga City. Jairome

Tire and Vulcanizing Shop and Master Square as the main

suppliers of tire and buckle, Shedrick’s Tire and

Vulcanizing Shop and Boning’s Trading as the secondary

suppliers.

TABLE 2

Supply Analysis

Raw Materials Supplier Alternative

Supplier

Used bicycle tire Jairome Tire and Shedrick’s Tire

Vulcanizing Shop and Vulcanizing
Shop
Buckle Master Square Boning’s Trading

Target Market
 BeeTee wants to influence the purchasing power of

teens and adults in Naga City since it is offering a

product at an affordable price. The main target markets are

college students in every school in Naga City. The adults

always use belts when at work or if they want to look

fashionable.

Competitor Analysis

To penetrate the market and keep up with the competition

among belt brands, the owners use the penetration pricing

strategy. Penetration pricing offers low price for new

business to attract the customers to increases its market

share and its sales volume. BeeTee sells its product at

P100.00, compared to competitors’ price ranging from P279-

P895 pesos.

TABLE 3

Name of the

product Type of Price Picture

Material

Used

Genuine
Hickok Leather P895.00
 Fabric
Braided P279.00
Fabric Belt
(unbranded)

P349.75
Bench Artificial
Leather

BeeTee Rubber P100.00

Marketing Plan

To ensure the success of the business in the market, the

owners considered these marketing mix;

1. Product

The BeeTee is made from reused bicycle tires. This

product was conceptualized to reduce the non-

biodegradable wastes in the environment while having a

durable finished product.

2. Place

The product is distributed in clothing and

accessories stores in Naga City.

3. Promotion

To improve the revenue generation, the owners adopt

techniques to realize its objectives since the business

is new to the market. There is a need to promote the

business to make it known and be able to get a market

share. The owners advertise the product using a Facebook

page.

Figure 6 – Facebook page of the product

4. The pricing is based on the production cost. The price

is 100 pesos per piece.

5. Process

The product was introduced by posting it in the

social media to ensure many will know about the product

and to attract more customers to patronize it.

 6. Physical Evidence

The customers are assured of quality belts because

it is made of tires which are durable.

7. Packaging

The packaging is very simple, a carton is attached

to the belt.

Figure 7 – Packaging of the product

CHAPTER II

MANAGEMENT STUDY

This chapter covers the vision, mission, objectives,

pre-operating procedures, and manpower requirement.

VISION
 To become the leading producer of durable and elegant

belts in Naga City after one year.

MISSION

To provide good quality and durable belts, at the same

time saving the environment.

OBJECTIVES

1. To achieve 5% sales for every year of operation.

2. To properly dispose the waste products.

3. To come up with certain marketing strategies each year.

SWOT Analysis

TABLE 4

STRENGTHS WEAKNESS

1. The product uses reused

materials.
 2. The product is new to the 1. The product is new and

customers, they will try is just penetrating

the product out of the market

curiosity. 2. The product has less

3. The product has low cost popularity.

production 3. The product has less

unit production.

OPPORTUNITIES THREATS

1. Remains a Niche player in 1. Blocked by big

the belt industry. competitors in the

2. The owners need to field of Belt

establish a reputation as manufacturing because

a highly effective belt of branded belts.

producer in the country. 2. The product might be

imitated.

Pre-operating Procedures

TABLE 5
Agency Requirements Procedures
LGU 1. Fill out the
Barangay  Application application
Clearance Form form in the
 Payment designated
barangay hall
2. Assessment
3. Payment
4. Receiving
5. Release

SEC  Registration 1. Draft

Certificate with DTI or SEC Partnership
of (depending on papers
Registration the 2. Present
partnership’s accomplished
capital) forms and
 Submission of documents to
duly notarized SEC for
Articles of processing and
Partnership evaluation
3. Present
 Submission of
verification
SEC form F-105
from local bank
(for
of minimum paid
partnerships
up capital in
with foreign
trust account
members)
4. Present other
 Procurement of requirements
licenses and (for
clearances from partnerships
necessary with foreign or
government Corporation
offices members)
 Registration 5. Claim
with BIR registration
 Registration from records
with government division
offices (if 6. Complete
employing necessary
individuals) applications
 Acquisition of with government
business permit agencies
and mayor’s
license
  Letter

LGU  Application 1. Secure

Mayor’s Form – you need Clearances (BIR
Permit to fill this Certificate of
out correctly Payment,
 Proof of Sanitary
Business Permit,
Registration Building
(DTI / SEC / Permit, Fire
Cooperative Clearance,
Development Zoning
Authority (CDA) Clearance)
2. Go to the
 Community Tax
Filing and
Certificate
Assessment
 Barangay section and
Business have your files
Clearance verified by the
 Contract of business permit
Lease (if licensing staff
Lessee) and have your
 Basis for files assessed
computing by the
taxes, fees and Municipal
charges (e.g. Treasurer.
Business 3. BIR Certificate
Capitalization) of
 Location Sketch Registration.
of the Business 4. SSS Employer’s
Registration
5. PhilHealth
Employer’s
Registration
6. Pag-IBIG
Employer’s
Registration
7. DOLE
Registration

Operating Period
 KMMGE Enterprise is a partnership form of business

composed of the following members: Micah Elijah Perol, Mark

Frances Belen, Geno Cortezano, Melissa Bachinicha, and Kate

Badong. They are responsible for the business operation to

ensure that the BeeTee is cost-effective. Having a business

is not easy, especially in maintaining its status and growth

in the market. It involves high risk and of either gaining or

losing profit. The entrepreneurs should know the factors that

attract the customers. The nature and the trend of the market

must be known thoroughly for the business to successfully

compete.

Business Profile

The business is registered with the Securities and

Exchange Commission (SEC) as a partnership where the business

is owned by five capitalist partners. The owner is Mr. Micah

Elijah Perol, the general manager. The partners take

equivalent risks and responsibilities thus all the profits

earned by the business are divided among the partners. The

General Manager with other four members with different

positions share the assets and other sources and are

responsible to any loss or indebtedness of the business. The

general manager formulates policies and handles matters or

 issues pertaining to the designation of work and evaluation

of performance of the workers/employees.

Ownership

The business is managed by the capitalist partners who

are undergraduates of Bachelor of Science in Business

Administration Major in Financial Management. The partners

contributed money and properties used as capital. They are in

direct control and legally liable for the finances of the

business.

Manager
Micah Elijah Perol

Manufacturing
Sales and
and Operation Finance
Marketing
Head: Head:
Head:
Geno Mark
Melissa
Cortezano and Frances
Bachinicha
Kate Badong Belen

Figure 8
ORGANIZATIONAL CHART

The organizational structure shows the different

positions in the KMMGE Enterprise. The manager/owner manages

the overall aspects in the production area. The manufacturing

operation head manages the overall manufacturing process,

they will be the workers as well. Ms. Melissa Bachinicha is

the Sales and Marketing Head, while Ms. Mark Frances Belen is

in charge of the Finance.

Table 6

Job Description and Specification

Position Job Description Qualification Compensation

and Benefits
Manager The person who College graduate Php 6,380
does the overall and with with
management and managerial sales statutory
supervision inside experience. benefits
and outside the (SSS,
company. Philhealth,
PAGIBIG, BIR)
In-charge The person in College graduate Php 6,380
of charge in with skills and with
manufactu supervising and knowledge statutory
ring and directing for involved in the benefits
operation every stage of manufacturing (SSS,
production process Philhealth,
PAGIBIG, BIR)
Sales and Person who manages College Php 6,380
Marketing the marketing of graduate, must with
Head the business’ have work statutory
product experience for benefits
at least 3 years (SSS,
in marketing and Philhealth,
sales PAGIBIG, BIR)
Financial In-charge of the Degree holder of Php 6,380
Head financing, BSA,BSBA with
budgeting and Financial statutory
auditing, keeping Accounting or benefits
of book of Financial (SSS,
accounts. Management Philhealth,
PAGIBIG, BIR)
 Table 7
Time Table from November 2018 – March 2019
ACTIVITIES November December January February March
a. Business
Plan Making

b. Marketing
Study and
Surveying

c. Planning of
the product
d. Business
Registration
and
Licensing
e. Acquiring
machineries
and
equipment

f. Promotion of
the Business

g. Start of
business
operation

The time table shows the activities in the pre-operating

period of the business. It starts by making the Business Plan

from November 1-30. Then followed by market study and testing

to ensure that the business is feasible. Then securing the

documents, the business acquires the necessary machineries

and equipment in January. Promotion of the business is

conducted in the month of February. Then, the business opens

and starts to operate in March 1, 2019.

 CHAPTER III
TECHNICAL STUDY
This chapter contains the details on production process,

raw materials and supplies requirement, inventory management,

production schedule, list of equipment, plant location

(warehouse), quality control and waste management.

A. Production Process
Procedure:
1. Gather all the needed materials
2. Cut the tire using scissor

3. Cut the tire into a belt shape

 4. Sew the buckle on the belt

5. Punch holes into the belt

6. Dye the belt with black color

7. Let it dry for at least 2 hours (air dry)

8. Finished Product

B. Raw Materials and Supplies Requirements

The raw materials and supplies used to make BeeTee are

purchased in Jairome Tire and Vulcanizing Shop and Master

Square in Naga City.

 TABLE 8

Raw Material Quantity Total Cost

1 15
Tire
1 20
Buckle
4 inches 2
Thread
1/8 sachet 0.375
Dye
37.375
TOTAL
15 mins. 9.06
Direct Labor

Total Cost 46.44

Mark Up 53.56

Selling Price 100.00

Inventory Management
The company ensures that there is a sufficient quantity

of raw materials throughout the year. Each month, the average

product for distribution is at least 1,280 pcs. The raw

materials are released for production on a First-In-First-

Out basis to ensure that earlier stocks are consumed first.

Production Schedule
The production of BeeTee is done from Monday to Friday

from 8:00 am to 5:00pm in Naga City. There are 2 labourers

in making the Tire Belt which takes about 15 minutes to

complete. The maximum number that can be produced in one day

is 32. The daily production of the product is based on the

market demand and the need of the stores for display or other

use that will affect the sales.

C. Plant Location and Store Layout

The plant location of KMMGE Enterprise where the

products are manufactured is at Concepcion Grande, Naga City.

Figure 9 – Plant Location

Figure 10 – Plant Layout

Quality Control

Quality control is essential in production. In this

business, the owners assure that the product’s quality is

sustained by conducting benchmarks. The business has a strict

quality control standard such as assessment and costing of

raw materials, supplies, and equipment used in the

production. The finished products are intensively checked and

inspected to ensure that the BeeTee meets the benchmark, they

are checked if there are tears or missed stitching in the

product.

Waste Management

The business donates the excess tires to the barangay as

toys for kids such as swings. They are also used to produce

seats and trash bins.

 TABLE 9

LIST OF EQUIPMENT

Is a tool used

Scissors to cut the tire.

P50.00

Used for sewing

Needle the buckle in P5.00

the belt

Belt Hole Used to punch

puncher holes in the

belt

P198.00

Used for

Paint Brush shining the

belt after they P 20.00

are dyed
 CHAPTER IV

FINANCIAL STUDY

This chapter discusses and illustrates the Financial

Assumptions and Projections, Capital Requirements, Sources

of Capital, Projected Income Statement for three years,

Projected Balance Sheet for Three years, Projected Cash

Flow Statement for three years and the financial analysis.

I. Financial Assumptions

1. Sales volume increases by 5% per year.

2. Sale price growth rate is 5% for each

consecutive year.

3. Raw materials increase by 5% per year

4. Finished goods inventory is 5% of Units produced.

5. Work in process is 3%

6. Operating expense increases by 5% every year

7. Utilities expense increases by 5% every year.

 TABLE 10

CAPITAL REQUIREMENTS

Cost to Produce (3 months) ₱177,638.75

Cost to Operate (3 months) ₱63,938.75

Capital Expenditures ₱15,898.00

TOTAL ₱257,475.50

Partners’ Contribution

Each partner is a capitalist and agreed to

contribute an equal amount of ₱52,000.00 each.

Source of Capital

Micah Elijah Perol ₱52,000.00

Mark Frances Belen ₱52,000.00
Geno Cortezano ₱52,000.00
Kate Badong ₱52,000.00
Melissa Bachinicha ₱52,000.00
₱260,000.00
 TABLE 11

COST OF GOODS MANUFACTURED

Item Qty Unit 2019 2020 2021

Cost
Direct
Materials
Raw Materials (unit cost increases by 5% in the 2nd and 3rd year)
Tire 15,360.00 15.00 230,400 241,920.00 254,016.00
Buckle 15,360.00 20.00 322,560.00 338,688.00
307,200.00
Thread(Nylon) 20roll 274.00 5,754.00 6,041.70
5,480.00
Dye Wax 15box 165.00 2,475.00 2,598.75 2,728.69
Packaging 15,360.00 .50 7,680.00 8,064.00 8,467.20
TOTAL RAW MATERIALS 553,235.00 580,896.75 609,941.90
Overhead
Water 1,800.00 1,890.00 1,984.50
Electricity 2,520.00 2,646.00
2,400.00
TOTAL FACTORY OVERHEAD 4,200.00 4,410.00 4,630.50
Worker 2 290/day ₱153,120.00 160,776.00 168,814.00
TOTAL PRODUCTION COST 710,555.00 746,082.00 783,386.09

Number of units produced 15,360.00 16,128.00

16,934.40
Cost per unit 46.26 48.57
50.00

TABLE 12*

Sales Data
2019 2020 2021
375 413
Units produced 7,500 PCS 7,875 units 8,269 units
Selling Price P 100.00 P 105 .00 P 110.00
Unit Sales 7,125 PCS 7,856 pcs 8,621 pcs
Projected Sales 712,500.00 824,880.00 948,310.00
Excess 375 pcs 413 PCS 61 PCS
 Excess Amount 37,500.00 43,365.00 6,710.00

TABLE 13
Cost of sales(Note YEAR
1)
2019 2020 2021
Materials __ ₱27,662.00 30,427.94
Inventory,
Beginning
Add: Purchases 553,235.00 580,896.75 609,941.90
Total materials 553,235.00 608,558.75 640,369.84
available for use
Less: Materials 27,662.00 30,427.94 32,018.49
inventory, ending
Materials used 525,573.00 578,130.81
608,351.35
Direct labor cost 153,120.00 160,776.00 168,814.00
Overhead 4,200.00 4,410.00 4,630.50
Total 682,893.00 743,316.81 781,795.85
manufacturing cost
Add:Work in - 20,487.00 22,914.11
process Beginning
Total Goods placed 682,893.00 763,803.81 804,709.96
into process
Less:Work in 20,487.00 22,914.11 24,141.30
process(3%)
Cost of goods 662,406.00 740,889.70 780,568.66
manufactured
Add: finished __ 80,275.00
goods, beginning 69,120.00
Total cost of 662,406.00 810,009.70 860,843.66
goods available
for sale
Less: finished
goods, ending 69,120.00 80,275.00 12,100.00
Cost of sales 593,286.00 729,734.70 848,743.66
 TABLE 14

OPERATING EXPENSE DATA

Description 2019 2020 2021

SSS Contribution 3600.00

3600.00 3600.00
Philhealth 3168.00 3168.00 3168.00
Contribution
PAG-IBIG FUND 3600.00 3600.00
3600.00
Supplies Expense 1,575.00 1,575.00 1,575.00

Licenses 2,526.00 2,526.00 2,526.00

Salaries Expense 229,680.00 241,164.00
253,222.00
Utilities Expense 6,000.00 6300.00 6,615.00
Delivery Expense 2400.00 2400.00 2400.00
Depreciation ₱3,206.00 3,206.00 3,206.00
Expense
Total 255,755.00 267,539.00 279,912.00

SUPPORTING SCHEDULE DATA

TABLE 15

Salaries and Wages

Position Monthly Salary Annually

Manager 6,380.00 76,560.00

Marketing & Sales Head 153,120.00

(2) 6,380.00
6,380.00
Finance Head 6,380.00
Total Salary Expense 229,680.00
 TABLE 16

SSS Contributions

Position Monthly Annually

Manager 100.00 1200.00

1200.00
Marketing & Sales Head 100.00

Marketing and Sales 1200.00

Staff 100.00

3600.00
Total Salary Expense 300.00

TABLE 17

Philhealth Contributions

Position Monthly Annually

Manager 88.00 1056.00

88.00 1056.00
Marketing & Sales Head
Marketing and Sales 88.00 1056.00
Staff

3168.00
Total Salary Expense 264.00
 TABLE 18

PAG-IBIG FUND Contributions

Position Monthly Annually

Manager 100.00 1200.00

100.00 1200.00
Marketing & Sales Head
Marketing and Sales 100.00 1200.00
Staff

3600.00
Total Salary Expense 300.00

TABLE 19

Utilities Expense
Monthly Annually
Water 200.00 ₱2400.00
Electricity 300.00 ₱3600.00
Total 500.00 ₱6000.00
 TABLE 20

Supply Expense

Monthly Annual
ITEM Quantity Amount
Cost Cost

Bond Paper 2ream 150.00 300.00

Record Book 1 pc. 35.00 35.00

Ball pen 20 pcs. 8.00 160.00
Stapler 1 pcs. 150.00 150.00
Tape 2 pcs. 35.00 70.00

Scissor 12 pcs. 30.00 ₱360.00

Needle 20pcs 5.00 100.00

Paint Brush 20pcs 20.00 400.00

Total 1,575.00

TABLE 21

Licenses Expense

Licenses Amount
BIR Annual Registration Fee 500.00
Cedula 100.00
Barangay Clearance 100.00
Sanitary Permit 100.00
Fire Safety Inspection 196.00
Mayor’s Permit 500.00
Business Name Registration 1,000.00
Documentary Stamp 30.00
Total 2,526.00
 TABLE 22

Delivery Expense

Monthly Annually

200.00 2400.00

Capital Expenditures Data

TABLE 23

Equipment Acquisition Estimated Depreciat

Cost Useful life ion

Belt hole puncher ₱198.00 3 ₱66.00

Laptop (1) P15,0000 5 P3000.00

Electric fan 700.00 5 140.00

Total ₱15,898.00 ₱3,206.00

 II. Financial Projections

TABLE 24

A)Projected Income Statement

For the Year ended December 31, 2019, 2020, 2021

Year 2019 Year 2020 Year 2021

Sales 1,313,280.00 1,524,940.00 1,689,100.00

Less: Cost 593,286.00 729,734.70 848,743.66

of Sales

Gross

Income 719,994.00 795,205.30 840,356.34

Less: 255,755.00 267,539.00 279,912.00

Operating

expenses

Income

before

taxes 464,239.00 527,666.30 560,444.34

Less:

Income tax

(25%) 116,059.75 131,916.58 140,111.09

Net Income 348,179.25 395,749.72 420,333.25

 TABLE 25 Projected Cash Flow Statement
For the year ended Dec. 31, 2019- Dec. 31, 2021

Year 2019 Year 2020 Year 2021

Cash Flows from Operating Activities
Cash received from 1,524,940
clients 1,313,280.00 .00 1,689,100.00
553,235.00 580,896.7 609,941.90
Payments to suppliers 5
Payments for salaries 401,940.0
and wages 382,800.00 0 422,036.00
Payments for SSS 3,600.00 3,600.00 3,600.00
PAG-IBIG FUND 3,600.00 3,600.00 3,600.00
Payments for 3,168.00 3168.00 3168.00
PhilHealth
Payments for 6300.00 6,615.00
utilities expense 6000.00
Payment to Production 4,200.00 4,410.00 4,630.50
Overhead
Payment for supplies 1,575.00 1,575.00
expense 1,575.00
2,526.00
Payment for licenses 2,526.00 2,526.00
131,916.5
Payment to taxes 116,059.75 8 140,111.09
Payment to delivery 2,400 2,400 2,400
1,142,332
Total 1,079,163.75 .33 1,200,203.49
Net cash provided by 382,607.6
Operating Activities 234,116.25 7 488,896.51
Cash flow from Investing Activities
Payments to acquire
office furniture
Payment to acquire
₱15,898.00
Equipment
Net cash used in
Investing Activities
Net cash provided by Financing Activities
Partners Contribution 260,000.00
Net Increase 382,607.6
478,218.25
(Decrease) in Cash 7 488,896.51
Cash balance at the
beginning of the -- 478,218.2 860,825.92
period 5
Cash balance at the 860,825.9
478,218.25 1,349,722.43
end of the period 2
 TABLE 26 Projected Balance Sheet
As of Dec. 31, 2019- Dec. 31, 2021

Year 2019 Year 2020 Year 2021

ASSETS
Current Assets
478,218.25
Cash 860,825.92 1,349,722.43
30,427.94 32,018.49
Materials Inventory 27,662.00
Finished Goods
Inventory 69,120.00 80,275.00 12,100.00
22,914.11 24,141.30
Work in Process 20,487.00

Total Current Assets 595,487.25 994,442.97 1,417,982.22

Non-Current Assets

Office furniture and

Equipment 15,898.00 15,898.00 15,898.00
Less: Accumulated
Depreciation 3,206.00 6,412.00 9,618.00
Total Non-Current
Assets 12,692 9,486.00 6,280.00
Total Assets 608,179.25 1,003,928.97 1,424,262.22

LIABILITIES
Current Liabilities 0 0 0
Total Current
Liabilities 0 0 0

EQUITY
Partners’ Capital 260,000.00 608,179.25 1,003,928.97
Add: Net Income 348,179.25 395,749.72 420,333.25
Total Liabilities &
Partner’s Equity 608,179.25 1,003,928.97 1,424,262.22
III. Financial Ratios and Analysis
Asset Management Ratios

𝑆𝑎𝑙𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

TABLE 27

Year 1 Year 2 Year 3

Sales 1,313,280.00 1,524,940.00 1,689,100.00
Total Asset 608,179.25 1,003,928.97 1,424,262.22
Total Asset 2.15 1.52 1.19
Turnover

The Total Assets Turnover for the first three

years is decreasing.

Profitability Ratios

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =
𝑆𝑎𝑙𝑒𝑠

TABLE 28

Year 1 Year 2 Year 3

Net Income 348,179.25 395,749.72 420,333.25
Sales 1,313,280.00 1,529,975.00 1,689,000.00
Profit 26.51 25.87 24.89
Margin

Year 1 has a Profit Margin of 26.51. Year 2 has

25.87Profit Margin. And Year 3 has 24.89Profit Margin.

Profit Margin is decreasing.

 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

TABLE 29

Year 1 Year 2 Year 3

Net Income 348,179.25 395,749.72 420,333.25
Total Asset 608,179.25 1,003,928.97 1,424,262.22
Return on 57.25 39.42 29.51
asset

Return on Assets Turnover is decrease every year.

Liquidity Ratio
𝑆𝑎𝑙𝑒𝑠
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑅𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

TABLE 30

Year 1 Year 2 Year 3

Sales 1,313,280.00 1,529,975.00 1,689,000.00
Total Asset 608,179.25 1,003,928.97 1,424,262.22
Profit 2.16 1.52 1.19
Margin
 CHAPTER V

SOCIO ECONOMIC BENEFITS

This chapter discusses the contribution of the business

to the economic growth of the society.

Social Benefits

The business provides a good product at a reasonable

price to the customers. It benefits both the users and the

environment because it is durable and can also save the

environment. The product is a helpful option to the people

who want to save Mother Earth. The business also gives

opportunity to people who want to work and earn salary to buy

their basic needs. They are given compensation commensurate

to their qualification. The business is responsible for

paying their mandatory benefits such as Philhealth, SSS, and

PAGIBIG so they will have pension and savings once they

retire.
Environmental Benefits

The dumping of tires in landfills has negative effects

on the environment. Not only do they take up a great deal of

space, but their process of decomposition creates a wide

variety of issues that have made their dumping landfills

unfeasible. The business benefits the people by reducing the

waste products in the environment. The owners of the business

assure that the business is not the number one cause of

destroying the environment but rather helps in solving the

problem of waste products.

Economic Benefits

The business contributes to the economic growth through

taxes, permits, and licenses which the owners pay regularly

which contributes to the country’s economic wealth. The

business creates employment and hires workers to help them

improve their status. The business also gives benefit to the

economy and community by giving them free training to enhance

their skills and knowledge for the progress of the economy.

The income that the government earns, are used for social

welfare and infrastructure programs implemented in the

community.
MARK FRANCES B. BELEN
Zone 7, Monserrat Magarao, Camarines Sur
0956-720-7914
[email protected]

Objectives:

______________________________________________________________________________

Strengths:

 Capable of doing computer application, such as MS Word and PowerPoint presentation.

 Has a good communication skill.
 Goal oriented, hardworking and dedicated in performing a job.

______________________________________________________________________________

Educational Background:

2015 - Present University of Nueva Caceres

Bachelor of Science in Business Administration

Major in Financial Management

J. Hernandez, Avenue Naga City

2011-2015 Camarines Sur National High School

Penafrancia Avenue, Naga City

2010-2011 Bell San Francico Elementary School

Bell Magarao, Camarines Sur

______________________________________________________________________________

Micah Elijah Perol

Address: Alpha St., Villa Grande Homes, Concepcion Grande, Naga City
Contact No.: +639328505588
Email: [email protected]

Objective
To obtain a position that will use my skills and allow me to learn new
skills.

Academic Background
Tertiary : Bachelor of Science in Business Administration Major in Financial
Management
University of Nueva Caceres
J. Hernandez Avenue, Naga City
(S.Y. 2015 – Present)

Secondary : Camarines Sur National High School

J. Hernandez Avenue, Naga City
(S.Y. 2011 – 2015)

Primary : Naga City Montessori School

Mayon Ave., Naga City
(S.Y. 2005 – 2011)

Traits

 Work well independently and easy to get along with others

 Organized, dedicated and loyal in work
 Honest and trustworthy
 Reliable and responsible
KATE BADONG
Zone 1, Barrameda st. San Jose Baao Cam. Sur
Cell # 09063601573
Email: [email protected]

OBJECTIVES

To be part of the company and to enhance my skills and knowledge.

EDUCATIONAL PROFILE:
Tertiary : University Of Nueva Caceres
Naga City, Camarines Sur 4400
2019 – 2020

Course : Bachelor of Science in Business Administration Major in

Financial Management

Secondary : Sta. Monica Academy

2014 – 2015

Primary : Sta. Monica Academy

2009 – 2010

PERSONAL PROFILE
Birthday : September 10,1998
Age : 20
Religion : Roman Catholic
Gender : Female
Weight. : 49kg
Height : 5’4
Civil Status : Single

Employment History
Lendes Poultry Farm
Oras, Baao Cam. Sur
Sales
Summer Job
May - July 2017