BUSINESS PLAN

AGRICULTURAL SUPPLIES TRADING

OF

EMERITOS ENTERPRISES
Located at

Purok 3-A, Poblacion Lingig, Surigao del Sur

Owned by

MR. EMERITO D. NONONG

Contact #: 0910-020-8255
Table of Contents

I. BACKGROUND/RATIONALE
II. MARKETING PLAN
III. TECHNICAL AND PRODUCTION PLAN
IV. ORGANIZATION AND MANAGEMENT PLAN
V. FINANCIAL PLN
VI. FUND REQUEST
VII. ATTACHMENT (Supporting Documents)
 I. Background/Rationale

The business enterprise is an agricultural supplies trading which offers basic

items consumed by household members, livestock owners and processors such as
rice, charcoal, feeds (for pig & chicken), copra, oil, vitamins (for pig & chicken), and
others. Products like rice and feeds were offered by wholesale (sacks) and in retail
(kilo) to the customers while some of the products like charcoal and copra sold by
tons. The business enterprise was located at Purok 3-a, Poblacion Lingig, Surigao
del Sur. It is strategically situated along the road which is most accessible to
consumers. It was managed by Mr. Emerito D. Nonong, 35 years old and an OFW
who worked abroad as Insurance Clerk for almost 5 years. With his ample amount of
money earned from his work abroad, he decided to settle here in the country and put
a buy & sell business enterprise that became the source of his income to sustain
their way of living.
Seeing the opportunity as being already established in the area, the proponent
wants to engage in expanding his products to cater more markets. Currently, they
are into wholesale and retail of rice & feeds, but it cannot cater the demand because
of limited capital. This gave an idea to the proponent to seek financial assistance
from the Land Bank of the Philippines (LBP) under its OFW-Reintegration Program
(ORP).
 II. MARKETING PLAN
A. Products
The business enterprise offered wholesale and retail of agricultural products and
some consumer goods mainly rice, feeds, charcoal, copra, vitamins (pig & chicken)
and other commodities consumed/purchased by households, livestock owners, and
processors. These will be offered in variety of kinds, appearances, and weight to
cater the different preferences of customers. Items such as rice and feeds are sold
and packed in plastic cellophane measured in kilos while copra and charcoal were
sold by tons and some of the products were sold by retail packs and such as tablets
and vitamins.

B. Price
The table below shows the prices of the products being sold by the enterprise.
Cost-oriented pricing was used by the business in its pricing strategy where cost plus
mark-up method is applied. Products’ mark-up is up to 10% to items and varies
depending to the price of the suppliers. The prices are just the same to the current
market price of the products offered by existing stores in the area.
Products were sold on cash basis and credit basis. It is estimated that 10%
of its sales from feed and rice were on credit basis. Annual increase on the prices of
the consumer items is 5% based on the average inflation rate in Surigao del Sur as
of 2016.
Table 1. Prices
Prices
Feeds
Wholesale (Bag) Retail (kilo)
BIO LINES
-Bio100 1,600.00 33.00
-Bio200 1,525.00 32.00
-Bio300 1,310.00 27.00
TURBO LINES
-Milk Boostina 800.00 82.00
-Pre-Startina 1,162.50 49.00
-Startina 1,610.00 33.00
-Growina 1,510.00 31.00
-Broodsow 1,390.00 28.50
HOGI PLUS
-Grower 1,210.00 26.00
-Lactation 1,260.00 26.00
POLLARD 550.00 17.00
TAHOP 450.00 17.00
 Prices
Rice
Wholesale (Bag) Retail (Kilo)
Sinandomeng 2,100.00 46.00
M-3 2,000.00 44.00
&-Toner 2,050.00 45.00

Retail Price
Agri-Products
(Kilo)
Charcoal 15.00
Copra 49.00

C. Place of Distribution

The business’ target markets are households, livestock owners, other agrivet
supply stores from Lingig, Surigao del Sur. From the business’ supplier, distribution
of the products will be directly distributed to customers in the target area. For his
products like Charcoal and Copra were delivered to the processors, specifically in
Davao City such Davao Bay Coconut Oil Mill Inc., Doktrade Copra and Agri-
Products, and Premium AC Corporation.

Figure 1. Distribution Strategy

Rice and Feeds Charcoal and Copra

Emerito’s Enterprise Emerito’s Enterprise

Retailers Processors

End-Consumer Distributor

End-User

D. Promotion (Marketing Strategy)

Having personal relation and connection is one of strategies to gain customers from
the business’ target area. Also, offering complete agricultural items for a one-stop-
shop by the customer is an advantage. The business enterprise was already known
by nearby households in the area, therefore it doesn’t have to spend more on its
promotional rather focus on the service it can provide to its customers.
E. Market Situation

The business’ existing customers and prospective markets are households,

livestock owners, and other agrivet supply stores for its rice, feeds, and other
products from Lingig, Surigao del Sur respectively. According to the 2015 census,
Lingig has a population of 31,485 people in the target area based on the data
estimated population solely from Lingig. On the other hand, market agricultural
products such as rice and feeds and for his products like Charcoal and Copra were
delivered to the processors, specifically in Davao City.
For the 2 years of operation, it is estimated that 30% of the market was
served by the enterprise for the agricultural products like feeds, rice, charcoal and
copra. And through the increasing population, the demand for the products will
increase and it indicates that there’s an opportunity to serve larger number of
customers.
III. TECHNICAL AND PRODUCTION PLAN
A. Process
Shown in the figure below is the step by step process in the operation of the
business until cash is recovered. Trading process starts with the acquisition of the
products delivered by suppliers and some of his copra products were produced from
his farm. In purchasing, there is an inspection of the goods being purchased to
ensure quality of the products being sold. After being delivered to the area, recording
and checking of the goods purchased was followed for monitoring. Products like
copra and charcoal will be delivered in Davao City every 2 weeks, and after
delivering the products to the processors, they will purchase rice & feeds in lieu of
the delivered products to minimize expense while some of the products were
delivered by suppliers in the store. Products were then displayed on the shelves
which are ready for sale while other products will be stored as maintaining inventory.
As customers purchased from the store, recording of its products sold on cash basis
will be monitored for the inventory and sales of the business. As cash will be
received and collected, purchase of consumer products will again take place.
Figure 2. Trading Process (Rice and Feeds)
Dry Wet

Drying (2 days)

Packing

Storing

Selling

Collection of Payment
 Figure 2. Trading Process (Copra and Charcoal)

Agri-Products Item (Rice and Feeds)

Storing Displaying

Selling

Collection of Payment

B. Location

The business enterprise is strategically located in Poblacion Lingig, It is 200

meters away from the public market and transport terminal. It directly serves the
customers because it was situated in a commercialized area along the national
highway that is visible and convenient.

Based on the studies, customers preferred stores along the highway

especially those who are in rush. They don’t have enough time to look for stores that
is located inside the public market, they tend to buy to the stores along the highway
for easy transportation and accessible and convenient to them.

C. Storage Layout

The storage area for the stocks was owned by the owner. He has 2 storage
areas, one was established at their residence while the other one was at Barangay
Handamayan where his coconut plantation located. (See attached for the layout of
his storage.)

D. Fixed Assets
The table below shows the existing assets of the business used in the
operation of the business. Straight line method was used for the depreciation of the
assets.
 Table 2. Fixed Assets
Fixed Assets
Quantity Unit Items Unit Cost Total Cost Year Acquired EUL Current Cost
1 Unit Vehicle ₱ 550,000.00 ₱ 550,000.00 2017 5 ₱ 550,000.00
2 units Storage Area/Room ₱ 95,000.00 ₱ 190,000.00 2015 10 ₱ 152,000.00
1 20sqm Dryer ₱ 10,000.00 ₱ 10,000.00 2017 10 ₱ 10,000.00
1 unit Weighing Scale ₱ 3,700.00 ₱ 3,700.00 2015 5 ₱ 2,220.00
1 90sqm Land ₱ 150,000.00 ₱ 150,000.00 2016 ₱ 150,000.00
TOTAL ₱ 903,700.00 ₱ 864,220.00

Table 3. Accumulated Depreciation

Accumulated Depreciation
Quantity Unit Items Current Cost RUL
Year 1 Year 2 Year 3
1 Unit Vehicle ₱ 550,000.00 5 ₱ 110,000.00 ₱ 220,000.00 ₱ 330,000.00
2 units Storage Area/Room ₱ 152,000.00 8 ₱ 19,000.00 ₱ 38,000.00 ₱ 57,000.00
1 20sqm Dryer ₱ 10,000.00 10 ₱ 1,000.00 ₱ 2,000.00 ₱ 3,000.00
1 unit Weighing Scale ₱ 2,220.00 3 ₱ 740.00 ₱ 1,480.00 ₱ 2,220.00
1 90sqm Land ₱ 150,000.00
TOTAL ₱ 864,220.00 ₱ 130,740.00 ₱ 261,480.00 ₱ 392,220.00

E. Operating Expenses

The table below shows the operating expenses of the business. Annual
increase is estimated to be 5% based on the average inflation rate in Surigao del Sur
as of 2016.

Table 4. Operating Expenses

Operating Expenses
Particulars Monthly Year 1 Year 2 Year 3
Water ₱ 200.00 ₱ 2,400.00 2,520.00 2,646.00
Light ₱ 110.00 ₱ 1,320.00 1,386.00 1,455.30
Gasoline/Fuel Expenses ₱ 10,000.00 ₱ 120,000.00 126,000.00 132,300.00
Rental Expenses ₱ 3,000.00 ₱ 36,000.00 37,800.00 39,690.00
Communication Expense ₱ 500.00 ₱ 6,000.00 6,300.00 6,615.00
Office Supplies Expenses ₱ 500.00 ₱ 6,000.00 6,300.00 6,615.00
Repairs and Maintenance ₱ 3,000.00 ₱ 36,000.00 37,800.00 39,690.00
Salaries and Wages ₱ 37,000.00 ₱ 444,000.00 466,200.00 489,510.00
Retainer's fee/Bookkeeper ₱ 2,000.00 ₱ 24,000.00 25,200.00 26,460.00
Other Expenses ₱ 2,000.00 ₱ 24,000.00 25,200.00 26,460.00
TOTAL ₱ 58,310.00 ₱ 696,000.00 ₱ 730,800.00 ₱ 767,340.00
Add: Depreciation ₱ 130,740.00 ₱ 130,740.00 ₱ 130,740.00
Total Operating Expenses ₱ 826,740.00 ₱ 861,540.00 ₱ 898,080.00
Assumption: Expenses will increase every year by 5% due to inflation rate.

F. Waste Disposal

Disposal of wastes will be done weekly. There will be segregation of

biodegradable and non-biodegradable items. There will be trash cans in each rooms
to prevent throwing garbage anywhere. The management will make sure that
cleanliness will be maintained in the area.
IV. ORGANIZATION AND MANAGEMENT PLAN
A. Business Description

The business enterprise was located at Purok 3-a, Poblacion Lingig, Surigao
del Sur. It is strategically situated along the road which is most accessible to
consumers. It was managed by Mr. Emerito Nonong, 35 years old and an OFW who
worked abroad as an Insurance Clerk for almost 5 years. With his ample amount of
money earned from his work abroad, he decided to settle here in the country and
engaged into a buy & sell business enterprise that became a source of his income to
sustain their way of living.

The business enterprise is a Buy and Sell for agricultural supplies which
offer basic items consumed by household members, livestock owners, and
processors such as rice, charcoal, feeds (for pig & chicken), copra, oil, vitamins (for
pig & chicken), and others. Products like rice and feeds were offered by wholesale
(sacks) and in retail (kilo) to the customers while some of the items were offered in
retail.

B. Organizational Structure
The figure below shows the organizational structure of the Emerito’s
Enterprise comprising the project management team who will manage and
implement the proposed project. It will be managed by the owner Mr. Emerito
Nonong as the manager who will be the one to manage the business and foresees
and monitors its overall day to day activities.
Figure 3. Organizational Structure

Manager
Bookkeeper

Helper Driver
C. Time Table
The table below shows the activities to be undertaken before the
implementation of the proposed project which had an estimated period of 8 months.
Activities Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8
1. Project Study Preparation
2. Processing and Completion of Requirements
3. Credit Inspection
4. Approval and release of funds
4. Continuation of Operation
 V. FINANCIAL PLAN
Emerito's Enterprise
Projected Income Statement
For the years ending December 31
Year 1 Year 2 Year 3
Sales ₱ 11,771,700.00 ₱ 12,360,285.00 ₱ 12,978,299.25
Less: Cost of Sales ₱ 9,718,290.00 ₱ 10,204,204.50 ₱ 10,714,414.73
Gross Profit ₱ 2,053,410.00 ₱ 2,156,080.50 ₱ 2,263,884.53
Less: Operating Expenses ₱ 826,740.00 ₱ 861,540.00 ₱ 898,080.00
Operating Income ₱ 1,226,670.00 ₱ 1,294,540.50 ₱ 1,365,804.53
Less: Interest Expense ₱ 92,291.75
Income before tax ₱ 1,134,378.25 ₱ 1,294,540.50 ₱ 1,365,804.53
Less: Income Tax Expense 296,001.04 347,252.96 370,057.45
Net Income ₱ 838,377.21 ₱ 947,287.54 ₱ 995,747.08

Emerito's Enterprise
Projected Cash Flows
For the years ending
Pre-operation Year 1 Year 2 Year 3
Cash Inflows
Cash Sales 100,000.00 11,771,700.00 12,360,285.00 12,978,299.25
Proceeds from Loan 2,000,000.00
Additional Investment 84,085.50
Total 2,184,085.50 11,771,700.00 12,360,285.00 12,978,299.25
Cash Outflows
Purchases 2,000,000.00 7,718,290.00 10,204,204.50 10,714,414.73
Payment of Operating Expenses 696,000.00 730,800.00 767,340.00
Payment of Service Vehicle 48,000.00 228,000.00 228,000.00
Payment of loan-LBP 2,000,000.00
Payment of Interest Expense 81,250.00
Payment of Income Tax 224,650.80 335,323.32 364,356.33
Total 2,048,000.00 10,948,190.80 11,498,327.82 11,846,111.05

Net Cash Flow 136,085.50 823,509.20 861,957.18 1,132,188.20

Add: Cash Balance, beginning 80,000.00 216,085.50 1,039,594.70 1,901,551.88
Cash Balance, end 216,085.50 1,039,594.70 1,901,551.88 3,033,740.08
 Emerito's Enterprise
Projected Balance Sheet
For the years ending
Particulars Pre-operating Year 1 Year 2 Year 3
ASSETS
Current Asset
Cash 216,085.50 1,039,594.70 1,901,551.88 3,033,740.08
Total Current Assets 216,085.50 1,039,594.70 1,901,551.88 3,033,740.08

Non- Current Assets

Vehicle 550,000.00 550,000.00 550,000.00 550,000.00
Storage Area/Room 152,000.00 152,000.00 152,000.00 152,000.00
Dryer 10,000.00 10,000.00 10,000.00 10,000.00
Weighing Scale 2,220.00 2,220.00 2,220.00 2,220.00
Land 150,000.00 150,000.00 150,000.00 150,000.00
Subtotal ₱ 864,220.00 864,220.00 864,220.00 864,220.00
Less: Accumulated Depreciation 130,740.00 261,480.00 392,220.00
Total Non-Current Assets 864,220.00 733,480.00 602,740.00 472,000.00
TOTAL ASSETS 1,080,305.50 1,773,074.70 2,504,291.88 3,505,740.08

LIABILITIES AND OWNERS' EQUITY

Current Liabilities
Notes Payable ₱ 228,000.00
Tax Payable ₱ 74,883.60 ₱ 86,813.24 ₱ 92,514.36
Loan Payable-Current
Total Current Liabilities 302,883.60 86,813.24 92,514.36

Long-Term Liabilities
Notes Payable 456,000.00 -
Total Long-term Liabilities 456,000.00 - - -

TOTAL LIABILITIES 456,000.00 302,883.60 86,813.24 92,514.36

Owners' Equity
Equity,Beginning 540,220.00 624,305.50 1,470,191.10 2,417,478.64
Add:Net Income 845,885.60 947,287.54 995,747.08
Additional Investment 84,085.50

Total Equity Capital 624,305.50 1,470,191.10 2,417,478.64 3,413,225.72

TOTAL LIABILITIES AND EQUITY 1,080,305.50 1,773,074.70 2,504,291.88 3,505,740.08
 PROFITABILITY RATIO
Net Profit Margin
Particulars Year 1 Year 2 Year 3
Net Income ₱ 845,885.60 ₱ 947,287.54 ₱ 995,747.08
Sales ₱ 11,771,700.00 ₱ 12,360,285.00 ₱ 12,978,299.25
Net Profit Rate 7.19% 7.66% 7.67%
Gross Profit Margin
Particulars Year 1 Year 2 Year 3
Operating Income ₱ 1,226,670.00 ₱ 1,294,540.50 ₱ 1,365,804.53
Revenue ₱ 11,771,700.00 ₱ 12,360,285.00 ₱ 12,978,299.25
Gross Profit Rate 10.42% 10.47% 10.52%

LIQUIDITY RATIO
Current Ratio
Particulars Year 1 Year 2 Year 3
Current Assets 1,039,594.70 1,901,551.88 3,033,740.08
Current Liabilities 302,883.60 86,813.24 92,514.36
Current Ratio 3.43 21.90 32.79

STABILITY RATIO
Debt-to-Equity Ratio
Particulars Year 1 Year 2 Year 3
Total Liabilities 302,883.60 86,813.24 92,514.36
Owner's Equity 1,470,191.10 2,417,478.64 3,413,225.72
Debt-to-Equity Ratio 21% 4% 3%

Debt Ratio
Particulars Year 1 Year 2 Year 3
Total Liabilities 302,883.60 86,813.24 92,514.36
Total Assets 1,773,074.70 2,504,291.88 3,505,740.08
Debt Ratio 17% 3% 3%

Equity Ratio
Particulars Year 1 Year 2 Year 3
Owner's Equity 1,470,191.10 2,417,478.64 3,413,225.72
Total Assets 1,773,074.70 2,504,291.88 3,505,740.08
Equity Ratio 83% 97% 97%
 INVESTMENT DECISION ANALYSIS
Return on Investment
Year Net Income
Year 1 845,885.60
Year 2 947,287.54
Year 3 995,747.08
Year 4 995,747.08
Year 5 995,747.08
Total Net Income 4,780,414.37
Divided: Critical Asset (Service
Vehicle) 5
Average Net Income 956,082.87
Total Project Cost 3,080,305.50
Return on Investment 31%

Payback Period

Net Income + Interest +

Month Depreciation
Cumulative Total Payback Period

1 1,057,875.60 1,057,875.60
2 1,078,027.54 2,135,903.14
3 1,126,487.08 3,262,390.22
4 1,126,487.08

Total Project Cost 3,080,305.50

Less: Cumulative Total where
3,262,390.22
investment is to be recovered
Total Amount to be recovered -182,084.72
Divided by: Net Income + Depreciation
where the investment is recovered
1,126,487.08

Quotient -0.16
Months
Days
Payback Period 3 years
 VI. FUND REQUEST
Total Project Cost
Particulars
Existing To be Acquired
Total
Fixed Assets Equity Equity LBP
Vehicle ₱ 550,000.00 ₱ 550,000.00
Storage Area/Room ₱ 152,000.00 ₱ 152,000.00
Dryer ₱ 10,000.00 ₱ 10,000.00
Weighing Scale ₱ 2,220.00 ₱ 2,220.00
Land ₱ 150,000.00 ₱ 150,000.00
Total Fixed Assets ₱ 864,220.00 ₱ 864,220.00

Working Capital
Working Capital 132,000.00 132,000.00
Purchases (3 months) ₱ 25,775.50 2,132,000.00 ₱ 2,132,000.00
Operating Expenses ₱ 58,310.00 ₱ 58,310.00
Subtotal
Less: Working Capital in Circulation 132,000.00
Total ₱ 132,000.00 ₱ 84,085.50 2,000,000.00 ₱ 2,216,085.50

Total Project Cost ₱ 996,220.00 ₱ 84,085.50 ₱ 2,000,000.00 ₱ 3,080,305.50

PERCENTAGE ALLOCATION
Proposed Loan ₱ 2,000,000.00
Equity ₱ 996,220.00
Total Project Cost ₱ 2,996,220.00
 VII. ATTACHMENT (SUPPORTING DOCUMENTS)
 Breakdown of Computation
A. Projected Sales

Prices Monthly Sales in Quantity

Feeds Feeds
Wholesale (Bag) Retail (kilo) Wholesale (Bag) Retail (kilo)
BIO LINES BIO LINES
-Bio100 1,600.00 33.00 -Bio100 4 100
-Bio200 1,525.00 32.00 -Bio200 4 100
-Bio300 1,310.00 27.00 -Bio300 8 300
TURBO LINES TURBO LINES
-Milk Boostina 800.00 82.00 -Milk Boostina 5
-Pre-Startina 1,162.50 49.00 -Pre-Startina 14 200
-Startina 1,610.00 33.00 -Startina 10 300
-Growina 1,510.00 31.00 -Growina 10 300
-Broodsow 1,390.00 28.50 -Broodsow 6 200
HOGI PLUS HOGI PLUS
-Grower 1,210.00 26.00 -Grower 14 200
-Lactation 1,260.00 26.00 -Lactation 6 200
POLLARD 550.00 17.00 POLLARD 60 250
TAHOP 450.00 17.00 TAHOP 60 250

Prices Monthly Sales in Quantity

Rice Rice
Wholesale (Bag) Retail (Kilo) Wholesale (Bag) Retail (kilo)
Sinandomeng 2,100.00 46.00 Sinandomeng 20 960
M-3 2,000.00 44.00 M-3 20 960
&-Toner 2,050.00 45.00 7 Toner 15 576

Monthly Sales in
Agri-Products Retail Price (Kilo) Agri-Products
Quantity
Charcoal 16.50 Charcoal 8,000
Copra 49.00 Copra 8,000

Monthly Sales in Peso Annual Sales in Peso

Feeds Feeds
Wholesale (Bag) Retail (kilo) Wholesale (Bag) Retail (kilo)
BIO LINES BIO LINES
-Bio100 6,400.00 3,300.00 -Bio100 76,800.00 39,600.00
-Bio200 6,100.00 3,200.00 -Bio200 73,200.00 38,400.00
-Bio300 10,480.00 8,100.00 -Bio300 125,760.00 97,200.00
TURBO LINES - TURBO LINES - -
-Milk Boostina - 410.00 -Milk Boostina - 4,920.00
-Pre-Startina 16,275.00 9,800.00 -Pre-Startina 195,300.00 117,600.00
-Startina 16,100.00 9,900.00 -Startina 193,200.00 118,800.00
-Growina 15,100.00 9,300.00 -Growina 181,200.00 111,600.00
-Broodsow 8,340.00 5,700.00 -Broodsow 100,080.00 68,400.00
HOGI PLUS - HOGI PLUS - -
-Grower 16,940.00 5,200.00 -Grower 203,280.00 62,400.00
-Lactation 7,560.00 5,200.00 -Lactation 90,720.00 62,400.00
POLLARD 33,000.00 4,250.00 POLLARD 396,000.00 51,000.00
TAHOP 27,000.00 4,250.00 TAHOP 324,000.00 51,000.00
TOTAL 163,295.00 68,610.00 231,905.00 TOTAL 1,959,540.00 823,320.00 2,782,860.00

Monthly Sales in Quantity Monthly Sales in Quantity

Rice Rice
Wholesale (Bag) Retail (kilo) Wholesale (Bag) Retail (kilo)
Sinandomeng 42,000.00 44,160.00 Sinandomeng 504,000.00 529,920.00
M-3 40,000.00 42,240.00 M-3 480,000.00 506,880.00
7 Toner 30,750.00 25,920.00 7 Toner 369,000.00 311,040.00
TOTAL 112,750.00 112,320.00 225,070.00 TOTAL 1,353,000.00 1,347,840.00 2,700,840.00

Agri-Products Monthly Sales in Quantity Agri-Products Monthly Sales in Quantity

Charcoal 132,000 Charcoal 1,584,000
Copra 392,000 Copra 4,704,000
TOTAL 524,000.00 524,000.00 TOTAL 6,288,000.00 6,288,000.00 11,771,700.00
B. Purchases
Prices Monthly Sales in Quantity
Feeds Feeds
Wholesale (Bag) Retail (kilo) Wholesale (Bag) Retail (kilo)
BIO LINES BIO LINES
-Bio100 1,440.00 29.70 -Bio100 4 100
-Bio200 1,372.50 28.80 -Bio200 4 100
-Bio300 1,179.00 24.30 -Bio300 8 300
TURBO LINES - - TURBO LINES
-Milk Boostina 720.00 73.80 -Milk Boostina 5
-Pre-Startina 1,046.25 44.10 -Pre-Startina 14 200
-Startina 1,449.00 29.70 -Startina 10 300
-Growina 1,359.00 27.90 -Growina 10 300
-Broodsow 1,251.00 25.65 -Broodsow 6 200
HOGI PLUS - - HOGI PLUS
-Grower 1,089.00 23.40 -Grower 14 200
-Lactation 1,134.00 24.44 -Lactation 6 200
POLLARD 495.00 15.30 POLLARD 60 250
TAHOP 405.00 15.30 TAHOP 60 250

Prices Monthly Sales in Quantity

Rice Rice
Wholesale (Bag) Retail (Kilo) Wholesale (Bag) Retail (kilo)
Sinandomeng 1,890.00 39.38 Sinandomeng 20 960
M-3 1,800.00 37.50 M-3 20 960
&-Toner 1,845.00 38.44 7 Toner 15 576

Monthly Sales in
Agri-Products Retail Price (Kilo) Agri-Products
Quantity
Charcoal 13.20 20%mark up Charcoal 8,000
Copra 37.24 24% mark up Copra 8,000

Monthly Sales in Peso Annual Sales in Peso

Feeds Feeds
Wholesale (Bag) Retail (kilo) Wholesale (Bag) Retail (kilo)
BIO LINES BIO LINES
-Bio100 5,760.00 2,970.00 -Bio100 69,120.00 35,640.00
-Bio200 5,490.00 2,880.00 -Bio200 65,880.00 34,560.00
-Bio300 9,432.00 7,290.00 -Bio300 113,184.00 87,480.00
TURBO LINES - TURBO LINES - -
-Milk Boostina - 369.00 -Milk Boostina - 4,428.00
-Pre-Startina 14,647.50 8,820.00 -Pre-Startina 175,770.00 105,840.00
-Startina 14,490.00 8,910.00 -Startina 173,880.00 106,920.00
-Growina 13,590.00 8,370.00 -Growina 163,080.00 100,440.00
-Broodsow 7,506.00 5,130.00 -Broodsow 90,072.00 61,560.00
HOGI PLUS - HOGI PLUS - -
-Grower 15,246.00 4,680.00 -Grower 182,952.00 56,160.00
-Lactation 6,804.00 4,888.00 -Lactation 81,648.00 58,656.00
POLLARD 29,700.00 3,825.00 POLLARD 356,400.00 45,900.00
TAHOP 24,300.00 3,825.00 TAHOP 291,600.00 45,900.00
TOTAL 146,965.50 61,957.00 208,922.50 TOTAL 1,763,586.00 743,484.00 2,507,070.00

Monthly Sales in Quantity Monthly Sales in Quantity

Rice Rice
Wholesale (Bag) Retail (kilo) Wholesale (Bag) Retail (kilo)
Sinandomeng 37,800.00 37,800.00 Sinandomeng 453,600.00 453,600.00
M-3 36,000.00 36,000.00 M-3 432,000.00 432,000.00
7 Toner 27,675.00 22,140.00 7 Toner 332,100.00 265,680.00
TOTAL 101,475.00 95,940.00 197,415.00 TOTAL 1,217,700.00 1,151,280.00 2,368,980.00

Agri-Products Monthly Sales in Quantity Agri-Products Monthly Sales in Quantity

Charcoal 105,600 Charcoal 1,267,200
Copra 297,920 Copra 3,575,040 11,771,700.00
TOTAL 403,520.00 403,520.00 TOTAL 4,842,240.00 4,842,240.00 9,718,290.00
2,053,410.00
C. Breakdown of Projected Income Statement
Feeds Trading
Income Statement
For the years ending
Year 1 Year 2 Year 3
Sales ₱ 2,782,860.00 ₱ 2,922,003.00 ₱ 3,068,103.15
Less: Cost of Sales ₱ 2,507,070.00 ₱ 2,632,423.50 ₱ 2,764,044.68
Gross Profit ₱ 275,790.00 ₱ 289,579.50 ₱ 304,058.48
Less: Operating Expenses ₱ 111,038.04 ₱ 115,711.97 ₱ 120,619.60
Operating Income ₱ 164,751.96 ₱ 173,867.53 ₱ 183,438.88
Less: Interest Expense ₱ 20,312.50
Income before tax ₱ 144,439.46 ₱ 173,867.53 ₱ 183,438.88
Less: Income Tax Expense 74,883.60 86,813.24 92,514.36
Net Income ₱ 69,555.86 ₱ 87,054.29 ₱ 90,924.52

Rice Trading
Income Statement
For the years ending
Year 1 Year 2 Year 3
Sales ₱ 2,700,840.00 ₱ 2,835,882.00 ₱ 2,977,676.10
Less: Cost of Sales ₱ 2,368,980.00 ₱ 2,487,429.00 ₱ 2,611,800.45
Gross Profit ₱ 331,860.00 ₱ 348,453.00 ₱ 365,875.65
Less: Operating Expenses ₱ 133,612.84 ₱ 139,237.01 ₱ 145,142.39
Operating Income ₱ 198,247.16 ₱ 209,215.99 ₱ 220,733.26
Less: Interest Expense ₱ 20,312.50
Income before tax ₱ 177,934.66 ₱ 209,215.99 ₱ 220,733.26
Less: Income Tax Expense 74,883.60 86,813.24 92,514.36
Net Income ₱ 103,051.06 ₱ 122,402.75 ₱ 128,218.90

Charcoal Trading
Income Statement
For the years ending
Year 1 Year 2 Year 3
Sales ₱ 1,584,000.00 ₱ 1,663,200.00 ₱ 1,746,360.00
Less: Cost of Sales ₱ 1,267,200.00 ₱ 1,330,560.00 ₱ 1,397,088.00
Gross Profit ₱ 316,800.00 ₱ 332,640.00 ₱ 349,272.00
Less: Operating Expenses ₱ 127,549.41 ₱ 132,918.35 ₱ 138,555.74
Operating Income ₱ 189,250.59 ₱ 199,721.65 ₱ 210,716.26
Less: Interest Expense ₱ 20,312.50
Income before tax ₱ 168,938.09 ₱ 199,721.65 ₱ 210,716.26
Less: Income Tax Expense 74,883.60 86,813.24 92,514.36
Net Income ₱ 94,054.49 ₱ 112,908.41 ₱ 118,201.90

Copra Trading
Income Statement
For the years ending
Year 1 Year 2 Year 3
Sales ₱ 4,704,000.00 ₱ 4,939,200.00 ₱ 5,186,160.00
Less: Cost of Sales ₱ 3,575,040.00 ₱ 3,753,792.00 ₱ 3,941,481.60
Gross Profit ₱ 1,128,960.00 ₱ 1,185,408.00 ₱ 1,244,678.40
Less: Operating Expenses ₱ 826,740.55 ₱ 861,540.55 ₱ 898,080.55
Operating Income ₱ 302,219.45 ₱ 323,867.45 ₱ 346,597.85
Less: Interest Expense ₱ 20,312.50
Income before tax ₱ 281,906.95 ₱ 323,867.45 ₱ 346,597.85
Less: Income Tax Expense ₱ 74,883.60 ₱ 86,813.24 ₱ 92,514.36
Net Income 207,023.35 237,054.21 254,083.49
 Mayor’s Permit
 DTI Permit
 Barangay Clearance
 BIR (Certificate of Registration)
 Philippine Coconut Authority (Certificate of Registration for Copra
and Charcoal Products)
 National Food Authority Certificate
 Deed of Absolute Sale (for collateral)
(FRONT OF BUSINESS ENTERPRISE)

Products of EMERITO’S ENTERPRISE

Actual Selling of Mr. Nonong
Inside and Products of Emerito’s Enterprise
Storage and Drying Area of Mr. Nonong

STORAGE
AREA

DRYING
AREA