Republic of the Philippines

Department of Education
REGION V
SCHOOLS DIVISION OF MASBATE PROVINCE
DIMASALANG DISTRICT
DIMASALANG NATIONAL HIGH SCHOOL
Poblacion, Dimasalang, Masbate

BUSINESS PLAN

THANKS A LATTE

In Compliance to Entrepreneurship 12

Adrian Baring Davalos

12-APOLLO

January 2024
 Table of Contents
page
List of Tables ...................................
List of Figures...................................
List of Appendices ...............................
Introduction
Proposed name of the business..................
Address of the business........................
Name of the owner or owners....................
Description of the business....................
Location of the business ......................
Funding requirements and sources...............
Executive Summary
Vision, mission, goals and objectives of the
business ...................................
Business model.................................
Business and product positions.................
Wealth improvement approaches .................
Parties supporting the business................
Environmental Analysis
Global analysis ...............................
Social analysis ...............................
Political forces ..............................
Economic forces ...............................
Socioeconomic forces ..........................
Technological dances ..........................
Ecological forces .............................
Legal forces ..................................
Industry analysis .............................
Customers .....................................
Competitors ...................................
Creditors......................................
Suppliers .....................................
Government ....................................
Shareholders ..................................
Employees .....................................
Trade associations ............................
Market forecast ...............................
Market share ..................................
Market position ...............................
Marketing strategy.............................
Business Description
Nature of the organization ....................
Product or service that it plans to
produce or serve ..............................
Various plant and office equipment.............
Size of the proposed business .................
Future parties with whom contracts
may be necessary ..............................
Personnel requirements ........................
Administrative operation ......................
Organizational Plan
Form of business organization .................
Liability of the owner or owners ..............
Organizational structure ......................
Roles and responsibilities ....................
Salary requirements ...........................
Production Plan
Production schedule............................
Production process ............................
Processing plant and equipment ................
Sources of materials ..........................
Production cost ...............................
Operation Plan
Evaluation of supplier ........................
Materials requisition and
receiving procedures ..........................
Storage and inventory control system...........
Shipment system and control ...................
Functions of support services..................
Marketing Plan
Product .......................................
Place .........................................
Price .........................................
Promotion......................................
People ........................................
Packaging......................................
Positioning ...................................
Financial Plan
Major assumptions .............................
Projected statement of comprehensive income....
Projected statement of cash flows .............
Projected statement of changes in equity ......
Projected statement of financial position......
Financial statement analysis ..................
Appendix.......................................
Introduction

This business plan outlines the concept, location, and

financial requirements for establishing a unique business
in Dimasalang Masbate .

Concept:

Observing a lack of Cafe in the area, we propose a [brief

description of business and its target audience]. Imagine
couples enjoying a beautiful ambiance, reading books, or
having intimate conversations over coffee, pastries, and
various beverages like milkshakes, teas, and milk teas.

Location:

The business will be situated at Tamayo Street Poblacion

Dimasalang masbate , offering little cafe with good food
and drinks.

Funding Requirements and Sources:

The total funding requirement is ₱450,000. The breakdown

is as follows:

₱150,000: Equipment and furniture (including coffee

machines, baking equipment, tables, chairs).
₱150,000: Initial inventory (coffee beans, pastries,
ingredients).
₱150,000: Renovation and security deposit for the space.
Funding will be sourced through a personal loan from
relatives, which will be repaid within a year. All income
will be deposited in a bank account for responsible
financial management.
Executive Summary

Vision:

To become the preferred neighborhood gathering place by

offering exceptional coffee, a warm ambiance, and
excellent customer service. We aim to create a cozy haven
where people can connect, relax, and enjoy a memorable
coffee experience.

Mission:

To provide high-quality, ethically sourced coffee and a

diverse menu of delicious beverages and snacks. We are
committed to cultivating a welcoming space that
encourages community, creativity, and genuine human
connection.

Goals:

Establish and maintain a strong presence in the local

community.
Build a loyal customer base by delivering consistently
excellent coffee and service.
Expand to additional locations within the city within
[specific timeframe].
Develop sustainable practices, such as reducing waste and
supporting fair trade coffee producers.
Objectives:

Open our coffee shop within six months, securing a prime

location in a high-traffic area.
Train and develop a passionate team of baristas committed
to delivering high-quality coffee.
Implement a marketing strategy to engage with the local
community and gain a strong online presence.
Achieve a 20% increase in revenue year-over-year for the
first three years of operation.
2. Business Model:

Type of Business: Neighborhood Coffee Shop

Target Market: Local residents, professionals, students,
creatives
Value Proposition: High-quality coffee, warm ambiance,
excellent customer service, community focus.
Key Activities: Sourcing coffee beans, preparing
beverages, offering food and snacks, creating a welcoming
atmosphere, hosting events.
Key Resources: Experienced baristas, high-quality
ingredients, comfortable seating, technology for online
presence.
Revenue Streams: Coffee and beverage sales, food sales,
merchandise, event fees.
Key Partners: Local suppliers, fair trade coffee
producers, community organizations.

3. Business and Product Positioning:

Competitive Advantage: Focus on quality, community, and

sustainability.
Product Differentiation: Ethically sourced beans, unique
drink offerings, comfortable atmosphere, community
events.
Pricing Strategy: Competitive pricing with slight premium
for quality.

4. Wealth Improvement Approaches:

Increase Sales: Expand menu, offer subscriptions, host

more events, attract online orders.
Reduce Costs: Source efficiently, minimize waste,
negotiate supplier discounts.
Increase Efficiency: Improve operational processes,
utilize technology for automation.
Expand Services: Offer delivery, catering, merchandise
sales.

5. Parties Supporting the Business:

Investors: Individuals, angel investors, small business

loans.
Suppliers: Local roasters, food distributors, equipment
providers.
Community: Collaborations with local businesses,
sponsorship opportunities, participation in events.
Employees: Passionate baristas, dedicated staff committed
to the vision.
Environmental Analysis

Global Analysis:
This section analyzes external factors impacting your
business. Remember, the specific details will depend on
your location and target market.
2. Social Analysis:

Growing demand for specialty coffee and ethical sourcing:

Research specific reports and articles on the growth of
this trend in your region. Highlight how your ethically
sourced, high-quality coffee caters to this demand.
Increasing focus on community and social experiences:
Analyze local community events and trends to understand
potential needs and interests. Plan events that resonate
with your target audience and foster a sense of
belonging.
Shifting demographics and evolving consumer preferences:
Conduct local surveys or focus groups to gather insights
into your target market's age, income, and specific
preferences. Offer diverse options to cater to different
tastes and dietary needs.
3. Political Forces:

Local regulations and licensing requirements: Contact

relevant government agencies to obtain a detailed list of
permits, licenses, and regulations specific to your
location and business type. Consider seeking professional
guidance to ensure compliance.
Tax policies and government incentives: Research
available tax breaks or grants for small businesses or
sustainable practices. Consult with a tax advisor to
maximize your eligibility and optimize your financial
strategy.
Political stability and economic climate: Analyze local
news and economic reports to assess potential risks and
opportunities associated with the current political and
economic landscape. Consider alternative plans or
contingency measures in case of unforeseen changes.
4. Economic Forces:

Inflation and disposable income: Track inflation rates

and analyze local income statistics to determine a fair
pricing strategy. Consider offering loyalty programs or
value-added promotions to attract customers during
economic fluctuations.
Interest rates and access to capital: Research loan
options and interest rates at various financial
institutions. Negotiate terms that align with your
financial projections and growth plans. Explore
alternative funding sources like crowdfunding or angel
investors if needed.
Economic growth and consumer spending: Analyze forecasts
and trends in your local economy to predict potential
impacts on consumer spending habits. Adjust your
marketing and operational strategies accordingly to
remain competitive.
5. Socioeconomic Forces:

Education levels and disposable income: Analyze how the

education level and income distribution in your target
area might affect their purchasing power and preferences.
Offer a mix of affordable and premium options to cater to
diverse budgets.
Lifestyle trends and health consciousness: Partner with
local health-focused businesses or offer healthy menu
items alongside regular options. Highlight your use of
organic ingredients or alternative milk options to
attract health-conscious consumers.
Urbanization and changing demographics: Research
population growth patterns and demographic shifts in your
chosen location. Analyze how these changes might
influence your customer base and adapt your offerings
accordingly.
6. Technological Forces:

Online ordering and delivery platforms: Research existing

platforms like Uber Eats or Doordash to understand their
fees and reach. Consider partnering with one or
developing your own delivery app based on the feasibility
and demand in your area.
Mobile payment options and digital marketing: Implement
contactless payment options like Apple Pay or Google Pay.
Develop a social media presence and utilize targeted
online advertising to reach your target audience on
relevant platforms.
Sustainable and eco-friendly technologies: Research
energy-efficient equipment, compostable cups, and other
sustainable solutions. Consider partnerships with local
recycling programs or sustainable suppliers to minimize
your environmental impact.
7. Ecological Forces:

Climate change and resource availability: Source coffee

beans and ingredients from regions committed to
sustainable farming practices. Consider water-saving
equipment and responsible waste management to minimize
your environmental footprint.
Waste reduction and recycling initiatives: Implement
composting programs, encourage reusable cups, and partner
with local recycling facilities. Showcase your commitment
to sustainability in your marketing and branding to
resonate with environmentally conscious customers.
Consumer demand for sustainable products: Conduct surveys
or focus groups to gauge the level of importance placed
on sustainability by your target market. Highlight your
efforts and emphasize your commitment to eco-friendly
practices in your communication.
8. Legal Forces:

Employment laws and regulations: Stay up-to-date on

minimum wage, overtime pay, and other labor laws to
ensure compliance and ethical treatment of your
employees. Consult with a legal professional for guidance
on payroll taxes and employee contracts.
Food safety and health regulations: Attend food safety
training programs and adhere to all relevant health codes
and regulations for food preparation and storage. Obtain
necessary health permits and conduct regular inspections
to maintain compliance.
Intellectual property rights (if applicable): Consult
with a lawyer to protect your brand name, logo, and any
unique recipes or creations through trademark or
copyright registration. This safeguards your intellectual
property and prevents infringement.
9. Industry Analysis:

Market size and growth potential: Research market reports

and industry publications to estimate the size and growth
potential of the coffee shop industry in your specific
region.
Competition and competitive landscape: Identify your
direct and indirect competitors, analyze their strengths
and weaknesses, and assess their market share.
Industry trends and future outlook: Identify key trends
in the coffee shop industry, such as specialty coffee
adoption, alternative milk popularity, and technology
integration. Research future projections for the industry
to understand potential opportunities and challenges.
10. Customers (already provided)

11. Competitors (already provided)

12. Creditors (already provided)

13. Suppliers:

Research and compare wholesale coffee roasters, food and

beverage distributors, and equipment suppliers in your
area. Prioritize ethically sourced, high-quality
ingredients and negotiate competitive pricing.
Consider building relationships with local suppliers to
support the community and potentially secure better
deals.
14. Government:
Stay informed about government regulations and policies
that might impact your business, such as tax changes,
minimum wage increases, or environmental regulations.
Advocate for policies that support small businesses and
sustainable practices.
15. Shareholders (not applicable for most coffee shops)

16. Employees (already provided)

17. Trade Associations:

Join relevant trade associations for coffee shops or

small businesses in your area. This provides networking
opportunities, access to resources, and industry updates.
18. Market Forecast:

Based on your market research, forecast the potential

demand for your coffee shop in the next few years.
Consider factors like population growth, income levels,
and competitor activity.
Quantify your projected revenue and customer base to
support your financial projections.
19. Market Share:

Research the market share of existing coffee shops in

your target area. Analyze their strengths and weaknesses
to identify opportunities to capture a significant share.
Set realistic goals for your own market share,
considering your unique offerings and competitive
advantages.
20. Market Position:

Clearly define your unique selling proposition (USP) and

competitive advantage. What makes your coffee shop stand
out from the competition?
Craft a clear and concise market positioning statement
that summarizes your target audience, your value
proposition, and how you differentiate yourself.
21. Marketing Strategy (expand on your existing points):

Develop a comprehensive marketing plan that outlines your

target audience, marketing channels, messaging, and
budget.
Utilize online marketing (social media, website, email
marketing) and offline marketing (events, partnerships,
signage) to reach your target audience effectively.
Track your marketing results and adjust your strategy
based on data and performance metrics.
Business Description

1. Nature of the Organization:

Sole proprietorship (assuming a single owner)

Partnership (if multiple owners)
Limited liability company (LLC) or corporation (consider
future growth)
2. Product or Service that it Plans to Produce or Serve:

Specialty coffee (highlight ethically sourced beans,

unique blends, etc.)
Pastries and baked goods (freshly baked, unique options)
Milkshakes, teas, and milk teas (high-quality
ingredients, unique flavors)
Light snacks and sandwiches (optional)
3. Various Plant and Office Equipment:

Espresso machine and grinder

Coffee brewing equipment (e.g., drip coffee maker, French
press)
Blenders and shakers for milkshakes and teas
Baking equipment (ovens, mixers, utensils)
Refrigerators and freezers
Display cases for pastries and drinks
Furniture (tables, chairs, sofas)
Point-of-sale system (optional)
Basic office equipment (computer, printer)
4. Size of the Proposed Business:

Small coffee shop (seating capacity)

Micro-cafe (small, focused menu)
Express coffee stall (limited seating, grab-and-go
options)
5. Future Parties with Whom Contracts May Be Necessary:

Coffee roasters (ethical sourcing commitments)

Food and beverage suppliers (quality ingredients)
Equipment suppliers and maintenance providers
Waste disposal and recycling services
Marketing and advertising agencies (optional)
Legal and accounting services (optional)
6. Personnel Requirements:

Baristas (skilled in coffee preparation and customer

service)
Cooks or bakers (optional, depending on menu complexity)
Cashiers (handling transactions and customer service)
Cleaning staff
7. Administrative Operation:

Business registration and licensing

Obtaining permits and food safety certifications
Accounting and bookkeeping
Inventory management
Employee payroll and tax compliance
Marketing and promotions
Social media management (optional)
Organizational Plan

1. Nature of the Organization:

Based on your description, the most suitable nature of

the organization appears to be a sole proprietorship,
assuming you are the sole owner. As your business grows,
you can consider forming a partnership or incorporating
if needed.

2. Product or Service that it Plans to Produce or Serve:

High-quality, ethically sourced coffee: Mention specific

regions or certifications to highlight your commitment.
Freshly baked pastries and snacks: Briefly describe
signature items or unique offerings.
Milkshakes, teas, and milk teas: Emphasize unique
flavors, high-quality ingredients (e.g., real fruits), or
healthy options.
Cozy ambiance and comfortable seating: Describe the
atmosphere you plan to create (rustic, modern, etc.).
3. Various Plant and Office Equipment:

Espresso machine and grinder: Indicate specific qualities

or brands if relevant.
Coffee brewing equipment: Specify types based on your
menu (e.g., pour-over, cold brew).
Blenders and shakers: Specify sizes and capabilities
based on drink offerings.
Baking equipment: List essential equipment based on your
pastry selection.
Refrigerators and freezers: Consider capacity needs for
ingredients and prepared goods.
Display cases: Choose options that enhance the visual
appeal of your offerings.
Furniture: Describe tables, chairs, and any additional
seating (sofas, outdoor seating).
Point-of-sale system (optional): Evaluate its benefits
for your business size and operations.
Basic office equipment: Specify computer and printer
needs for record-keeping.
4. Size of the Proposed Business:

Considering your location and target audience, a micro-

cafe with a focused menu and limited seating (10-20)
might be suitable. You can adjust based on available
space and budget.

5. Future Parties with Whom Contracts May Be Necessary:

Local coffee roasters: Partner with ethically sourced and
high-quality suppliers.
Local bakery or ingredient suppliers: Prioritize fresh,
local ingredients whenever possible.
Equipment suppliers and maintenance providers: Ensure
reliable service and warranties.
Waste disposal and recycling services: Choose
environmentally responsible options.
Marketing and advertising agencies (optional): Consider
local agencies for targeted outreach.
Legal and accounting services (optional): Seek guidance
for compliance and financial management.
6. Personnel Requirements:

1-2 Baristas: Train them in coffee preparation, customer

service, and equipment operation.
Part-time baker or pastry chef (optional): Consider this
based on demand and menu complexity.
Cashier for peak hours: Ensure smooth transactions and
customer interaction.
Cleaning staff: Maintain hygiene and a pleasant
environment.
7. Administrative Operation:

Obtain necessary permits and licenses: Research and

comply with local regulations for food businesses.
Implement food safety practices: Train staff and maintain
hygiene standards.
Set up accounting system: Track income, expenses, and
inventory.
Manage inventory efficiently: Minimize waste and prevent
spoilage.
Develop marketing strategy: Utilize social media, local
partnerships, and targeted promotions.
Consider customer relationship management (CRM): Build
loyalty and personalize service (optional).
Production Plan

1. Production Schedule:

Pre-opening:
Secure permits and licenses (estimated timeframe)
Purchase and install equipment (estimated timeframe)
Hire and train staff (estimated timeframe)
Develop and stock initial inventory (estimated timeframe)
Implement marketing and promotional activities (ongoing)
Opening:
Grand opening event (specific date)
Regular operating hours (daily/weekly schedule)
Ongoing:
Continuously restock inventory (weekly/monthly schedule)
Introduce new menu items (frequency based on strategy)
Host special events (occasional timeframe)
Evaluate and adjust production based on demand and
feedback
2. Production Process:

Coffee:
Source ethically sourced coffee beans (specify origin and
roasting process)
Grind beans based on brewing method (espresso, drip,
etc.)
Prepare coffee drinks according to recipes (espresso
shots, milk steaming, flavoring)
Pastries and Snacks:
Source fresh ingredients from local suppliers (if
possible)
Prepare doughs, fillings, and toppings according to
recipes
Bake or cook items according to required temperatures and
times
Milkshakes, Teas, and Milk Teas:
Use high-quality ingredients like real fruits and fresh
milk (specify)
Blend or brew according to specific recipes and desired
consistency
Additional Considerations:
Quality control checks at each stage of production
Standardized recipe portions and measurements
Hygiene and sanitation practices throughout the process
3. Processing Plant and Equipment:

Kitchen & Preparation Area:

Commercial countertops and sinks
Ovens and baking equipment (specify types based on menu)
Refrigerators and freezers
Blenders and mixers
Food processors (if needed)
Utensils and baking tools
Coffee Bar:
Espresso machine and grinder
Coffee brewing equipment (e.g., drip coffee maker, French
press)
Milk frother and steamer
Coffee grinders and scales
Tamper and portafilter for espresso machine
General:
Display cases for pastries and drinks
Storage shelves and containers
Point-of-sale system (optional)
Waste disposal and recycling containers
4. Sources of Materials:

Coffee:
Research and partner with local coffee roasters committed
to ethical sourcing.
Pastries and Snacks:
Prioritize fresh, local ingredients from bakeries,
markets, or farms.
Consider bulk purchases for cost-effectiveness.
Milkshakes, Teas, and Milk Teas:
Source high-quality fruits, milk, and tea leaves from
reliable suppliers.
Explore local options for unique flavors and freshness.
5. Production Cost:

Equipment: Research and compare prices for various

equipment options.
Ingredients: Estimate costs based on recipes, portion
sizes, and supplier quotes.
Labor: Calculate payroll costs based on staff salaries
and working hours.
Utilities: Estimate electricity, water, and gas
consumption for kitchen and equipment operation.
Rent or mortgage: Factor in monthly rent or mortgage
payments for your cafe space.
Permits and licenses: Include application and renewal
fees for relevant permits.
Marketing and advertising: Budget for promotional
activities and materials.
Operation Plan

1. Evaluation of Suppliers:

Criteria for evaluation:

Quality and consistency of ingredients

Ethical sourcing practices (especially for coffee)
Competitive pricing and payment terms
Reliability and timely deliveries
Minimum order quantities and availability
Customer service and communication
Evaluation methods:

Request samples and test product quality

Research online reviews and industry reputation
Negotiate pricing and terms with different suppliers
Check for certifications and ethical sourcing commitments
2. Materials Requisition and Receiving Procedures:

Requisition process:
Develop standard forms for requesting inventory from
suppliers
Determine reorder points based on usage and lead time
Authorize requisitions by designated staff
Receiving procedures:
Verify quantity, quality, and condition of delivered
goods against purchase orders
Inspect for damage or spoilage
Update inventory records upon receiving
Store items according to proper protocols (e.g., FIFO)
Obtain and file supplier invoices for payment processing
3. Storage and Inventory Control System:

Inventory management methods:

First-In-First-Out (FIFO) to ensure product freshness
Minimum stock levels to avoid stockouts
Cycle counts to verify inventory accuracy
Inventory management software (optional)
Storage considerations:
Proper labeling and organization for easy identification
Temperature and humidity control for perishable items
Secure storage for valuable ingredients
Regular cleaning and pest control
4. Shipment System and Control (if applicable):

Delivery options:
Utilize supplier delivery services
Partner with local delivery platforms
Consider offering in-house delivery for specific orders
Shipment tracking and monitoring:
Use tracking numbers and estimated arrival times
Implement quality checks upon arrival (if applicable)
Update inventory records upon delivery
5. Functions of Support Services:

Accounting:
Manage invoices and payments to suppliers
Track inventory costs and profitability
Generate financial reports for decision-making
Marketing:
Source promotional materials and packaging from suppliers
Manage social media presence and online ordering
platforms
Partner with local businesses for cross-promotion
Marketing Plan
1. Product:

Coffee: Highlight quality, ethical sourcing, unique

blends, brewing methods.
Pastries and Snacks: Mention fresh ingredients, signature
items, dietary options.
Milkshakes, Teas, and Milk Teas: Emphasize unique
flavors, high-quality ingredients, customization.
Additional Offerings: Consider light meals, seasonal
specials, unique drinks.
2. Place:

Location: Describe accessibility, foot traffic, parking,

ambiance.
Physical Space: Describe seating layout, decor,
atmosphere, outdoor seating (if applicable).
Distribution Channels: Consider online ordering, delivery
partnerships, catering (if applicable).
3. Price:

Pricing Strategy: Cost-based, market-based, value-based

(consider competition, target audience).
Price Points: Set prices for individual items and combos,
consider value bundles.
Payment Methods: Cash, credit/debit cards, contactless
options, mobile wallets.
4. Promotion:

Marketing Channels: Social media, local partnerships,

website, flyers, signage.
Promotional Activities: Grand opening events, loyalty
programs, discounts, social media contests.
Public Relations: Engage with local media, influencer
marketing (optional).
5. People:

Target Audience: Describe demographics, needs,

preferences, coffee habits.
Staff: Emphasize friendly, knowledgeable, and service-
oriented personnel.
Training: Provide coffee preparation, customer service,
and safety training for staff.
6. Packaging:

Sustainable Materials: Eco-friendly cups, lids, straws,

boxes (if applicable).
Branding Design: Logo, colors, fonts for consistent brand
identity on packaging.
Functionality: Easy to hold, spill-proof, leak-proof
(consider reusable options).
7. Positioning:

Unique Selling Proposition (USP): What sets your cafe

apart from competitors?
Value Proposition: Benefits you offer to your target
audience (e.g., quality, experience, convenience).
Positioning Statement: Summarize your USP and value
proposition in a clear message.
Financial Plan

Major Assumptions:

Market Growth: 2% annual growth for cafes in Dimasalang

Masbate.
Customer Base: 10 customers per day, spending ₱100 each
on average.
Pricing: Coffee: ₱50, Pastries: ₱30, Beverages: ₱40.
Inventory Turnover: 4 times per year.
Operational Costs: ₱20,000 per month.
Loan Terms: 1-year loan, 10% interest rate.
Projected Statement of Comprehensive Income (Year 1):

Revenue Amount (₱)

Coffee Sales 1,825,000
Pastry Sales 1,095,000
Beverage Sales 1,460,000
Total Revenue 4,380,000
Cost of Goods Sold (COGS) 1,560,000
Gross Profit 2,820,000
Operating Expenses 240,000
Loan Interest Expense 45,000
Net Income Before Tax 2,535,000
Taxes (20%) 507,000
Net Income 2,028,000
Projected Statement of Cash Flows (Year 1):

Cash Inflows Amount (₱) Cash Outflows Amount (₱)

Sales 4,380,000 Cost of Goods Sold 1,560,000
Operating Expenses 240,000
Loan Payments (Principal + Interest) 195,000
Taxes 507,000
Net Cash Flow from Operating Activities 2,078,000
Loan Proceeds 450,000
Total Cash Inflows 2,528,000
Net Cash Flow 1,021,000
Projected Statement of Changes in Equity (Year 1):

Equity Beginning Ending

Owner's Investment 450,000 450,000
Net Income 0 2,028,000
Total Equity 450,000 2,478,000
Projected Statement of Financial Position (Year 1):

Assets Amount (₱) Liabilities Amount (₱)

Cash 1,021,000 Loan Payable 0
Inventory 390,000
Equipment & Furniture 150,000
Total Assets 1,561,000 Total Liabilities 0
Owner's Equity 2,478,000
Financial Statement Analysis:
Profit Margin: 46% (Net Income / Revenue)
Return on Investment (ROI): 450% (Net Income / Owner's
Investment)
Debt-to-Equity Ratio: 0 (Liabilities / Owner's Equity)
Break-even Analysis:

Break-even sales: ₱1,475,000 (Fixed Costs / Profit

Margin)
Appendix