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La Consolacion College Manila

School of Business and Accountancy

A PROJECT FEASIBILITY STUDY FOR R PLANNER

In partial fulfillment of the requirements for

the degree of Bachelor of Science
in Accountancy

By

AGUILAR, RAYMOND T.

LIM, MARIEL O.

LOGAN, REBECCA MAY V.

VILLARUBIA, MA. PAULA V.

September 2018
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APPROVAL SHEET
This undergraduate feasibility study entitled: “A PROJECT FEASIBILITY STUDY
FOR R PLANNER”, prepared and submitted by Raymond Aguilar, Mariel Lim,
Rebecca May Logan, and Ma. Paula Villarubia, in partial fulfillment of the requirements
for MANAGEMENT ADVISORY SERVICES leading to the degree of Bachelor of Science
in Accountancy, has been examined and is recommended for acceptance and approval
for oral defense.

ROBERT Y. CO, BSC, CPA, MBA, DBA

Adviser

FEASIBILITY STUDY REVIEW PANEL

Approved by the Committee on Oral Examination with a grade of _________%

Giovanni R. Barbajera Lilibeth M. Puno, CPA, MBA

Member Member

Accepted and approved in partial fulfillment of the requirements for the degree of
Bachelor of Science in Accountancy.

Ronald M. Pastrana, MBA, Ph.D

Dean, School of Business and Accountancy/ITCS
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TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION ....................................................................................... 1

Origin ........................................................................................................................... 1
Background of the Business ........................................................................................ 2
Significance of the Study ............................................................................................. 3
Business Location ........................................................................................................ 4
CHAPTER 2 MANAGEMENT ASPECT ......................................................................... 5
Form of Business Organization .................................................................................... 5
Vision – Mission ........................................................................................................... 6
Manpower Requirements ............................................................................................. 8
Legal Requirements and Steps of Business Registration .......................................... 11
Project’s Timetable .................................................................................................... 13
Rules and Regulations ............................................................................................... 14
Internal Controls......................................................................................................... 26
CHAPTER 3 MARKETING ASPECT ............................................................................ 29
Target Market............................................................................................................. 29
Target Area ................................................................................................................ 29
Competitive Situation ................................................................................................. 30
List of Indirect Competitors ........................................................................................ 30
Sampling Area ........................................................................................................... 30
Sampling Method ....................................................................................................... 31
Sample Size ............................................................................................................... 32
Survey Results ........................................................................................................... 33
Demand Analysis ....................................................................................................... 45
Supply Analysis.......................................................................................................... 48
Demand Gap.............................................................................................................. 49
Pricing Study .............................................................................................................. 51
Marketing Program, Mix and Strategies ..................................................................... 51
CHAPTER 4 TECHNICAL ASPECT ............................................................................. 53
Purchase Process ...................................................................................................... 53
Production Process .................................................................................................... 54
Selling Process .......................................................................................................... 56
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Production Schedule .................................................................................................. 57

Store Schedule .......................................................................................................... 59
Office Schedule.......................................................................................................... 59
Production Capacity ................................................................................................... 60
Business Location ...................................................................................................... 62
Floor Area of the Business ......................................................................................... 64
Property, Plant and Equipment .................................................................................. 65
Production Cost ......................................................................................................... 74
CHAPTER 5 FINANCIAL ASPECT .............................................................................. 78
General Financial Assumptions ................................................................................. 78
Project Cost ............................................................................................................... 80
Statement of Financial Position.................................................................................. 81
Statement of Cash Flow ............................................................................................. 82
Comparative Statement of Financial Position ............................................................ 83
Comparative Statement of Cash Flows ...................................................................... 84
Comparative Statement of Comprehensive Income ................................................... 85
Comparative Projected Statement of Changes in Equity ........................................... 85
Notes to Financial Statements ................................................................................... 87
Financial Highlights .................................................................................................... 89
CHAPTER 6 SOCIO-ECONOMIC ASPECT ................................................................. 90
Production .................................................................................................................. 90
Employment ............................................................................................................... 91
Taxes ......................................................................................................................... 91
Environment ............................................................................................................... 92
Waste Disposal .......................................................................................................... 92
APPENDICES
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LIST OF TABLES
Table Page
Title
No. No.
1 Partners’ Contributions and Profit Sharing Ratio …...…………. 5
2 Gantt Chart ………………………………………………………… 13
3 Historical Population …………...…………………………………. 45
4 Projected Population ………….………………………………….. 46
5 Determination of Frequency of Reminding Planner …….…….. 46
6 Historical Demand of Reminding Planner ...……………………. 47
7 Projected Demand of Reminding Planner ……………………... 47
8 Historical Supply …………………………...……………………... 48
9 Projected Supply ….………………………………………………. 48
10 Historical Demand – Supply Analysis ….………………………. 49
11 Determination of Capacity ………..……………………………… 50
12 Projected Demand – Supply Analysis …..……………………… 50
13 Comparison of Prices ………………………..………….……….. 51
14 Proposed Price for Reminding Planner ………………………… 51
15 Production Schedule – First Cycle ….……………………….….. 57
16 Production Schedule – Second Cycle ..………………………… 58
17 Production Capacity Schedule …………………..………………. 60
18 Manpower Schedule ……………………………………………… 61
19 Production Machinery and Equipment …………………………. 65
20 Production Furniture and Fixtures .……………………………... 66
21 Office Machinery and Equipment ..……………………………… 67
22 Office Furniture and Fixtures ……………………………………. 68
23 Store Machinery and Equipment …...…………………………… 69
24 Store Furniture and Fixtures …………………………………….. 70
25 Production Tools – not subject to depreciation .…….…………. 71
26 Office Supplies ……………………………………………………. 71
27 Raw Materials and Indirect Materials ...………………………… 73
28 Direct Materials …..……………………………………………….. 74
29 Direct Labor Cost …………………………………………………. 74
30 Overhead …………………………………………………………... 75
31 Total Product Cost per Unit ……..……………………………….. 77
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LIST OF FIGURES

Figure Title Page

No. No.
1 Vicinity Map …………………………………………………... 4
2 Organizational Chart ………………………………………… 7
3 Respondents’ Gender …………………………..…………... 33
4 Respondents’ Age……………………………………………. 34
5 Respondents’ Monthly Allowance or Salary ..…………….. 35
6 Respondents that Use Planner …………………………….. 36
7 Frequency of Buying Planner ………………………………. 37
8 Respondents’ Preferred Cover …………………………….. 38
9 Respondents’ Preferred Size ………………………………. 39
10 Place Where the Respondents Usually Buy Planner ...….. 40
11 Preference on Buying in a Planner/Physical Store ………. 41
12 Important Qualities of a Planner …………………………… 42
13 Willingness to Buy Planner with Alarm ……………………. 43
14 Preferred Price ………………………………….…………… 44
15 Purchase Process Flow Chart …………………………….. 53
16 Production Process Flowchart ……………………………… 54
17 Selling Process Flowchart …………………………………... 56
18 Vicinity Map ……………………….…………………………. 62
19 Actual Façade …………….………………………………… 63
20 Floor Plan ………………………………………………..…… 30
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LIST OF SCHEDULES

Page
No. Title
No.
1 Average Customers per year…………………………...……… 48
2 Historical Values……………………………………………........ 49
3 Payroll……………………………………………………………... 76
4 Share of Employer………………………………………………. 76
5 Other Expenses under Overhead……………………………... 77
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EXECUTIVE SUMMARY

The firm is named R Planner. The name was conceptualized from the product that

the business is offering in the market, which is the Reminding Planner, a planner with an

alarm on it. The main purpose of the product is to inform the user on the important things

he/she wrote on the planner. The planner is also made for better time management of the

user, as the user does not need to worry on forgetting the important reminders that are

needed to be done, the planner will inform the user by itself instead. R Planner aims to

satisfy and serve many people with its product. The proponents of the study are Raymond

Aguilar, Mariel Lim, Rebecca May Logan, and Ma. Paula Villarubia.
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CHAPTER 1

INTRODUCTION

This study seeks to determine the viability and feasibility of introducing a planner

with an alarm on it, as its new feature, that will give ease and convenience for the users

to keep track on their daily tasks or appointments. This feature helps on improving the

consumers’ time management, on increasing their productivity, and on making their

lifestyle better. This paper tackles in detail the management, marketing, technical,

financial, and social desirability aspects of the business undertaking.

Origin

The planner or agenda, which means things to do, is a small book or binder that is

designed to be portable that usually contains a diary, calendar, address book, blank paper

and other sections (Farlex, 2018).

According to an article written by Molly McCarthy, the planner strikes the people

as a straightforward piece of technology. It offers a clear way to look ahead and impose

order and predictability onto their time. The planner is more than a tool, it is also a way of

seeing the world. The way it organizes time, its prioritization and how people choose to

fill it in; all of these things reflect a set of values, and one that has changed since the

planner was born.

Before the American daily planner came a Colonial bestseller, the almanac,

modified into a diary. Washington, like other Founding Fathers, interleaved his own blank

pages into his copy of the almanac, an indispensable calendar and local guide that

provided Colonists with the times of sunrises and sunsets, lists of local inns, postage
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rates, weather predictions, and much more. Each day Washington noted in the book

where he rode, who came to call, and with whom he dined. Though not a planner per se,

the almanac-diary foreshadowed its abbreviated qualities and rigorous daily structure.

In 1773, Robert Aitken, an aspiring publisher in Revolutionary-era Philadelphia,

published what he claimed was America’s first daily planner, offering his customers a

prefabricated layout not unlike the planners of today. For the first time ever, Americans

could see their days laid out before them and plan ahead beyond the almanac’s generic

predictions. Eventually, planners did take off. In a busier and more industrial America,

people had begun to realize that mapping the future would be critical to getting ahead. By

1850, diaries and other varieties of blank books, scrapbooks, ledgers, and account books

had become big business.

Background of the Business

The planner is a tool that helps the consumer to organize their schedules, agendas

and goals that they aim to achieve. As the nation grows, and people become busier and

more ambitious, the business decided to create innovation to the planners. The business

believes that this will be very helpful to students, professionals, employers and to any

individuals who wanted to improve themselves.

Today, most students are less productive because they are being distracted and

unfocused of the things they have to do. It might create negative effects in the long run

when they don’t take any actions to make it right.

The business decided to choose the Reminding Planner, a planner with an alarm

on it. The business believes that it would be very useful for the consumers to focus on the
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things they have to prioritize. Some benefits are: they will learn how to manage their time

properly, it increases productivity, they can keep on track of the daily tasks and

appointments, they can organize their goals and objectives, it can store important events

to remember and it will decrease stress in their lives. These are some things that might

help students to achieve their goals, and also, help the consumers make their lifestyle

better.

Significance of the Study

To the customers – this study assesses the feasibility of an innovated planner

that would provide benefits to the consumers including convenience, time management,

increased in productivity and better lifestyle.

To the proponents – in working with the study, the proponents have acquired new

knowledge and skills that they can use in their profession in the future. The study served

as a tool for them to have a wider view of business industry.

To other researchers – the study shall include an analysis of the product’s current

industry and project a three-year forecast which may serve as reference for other

researchers. The discussion in this feasibility study shall also provide insights for future

proponents of feasibility studies.

To the government – the realization of the proposed business concept in this

study shall provide additional income to the government in the form of taxes.
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To the community – the company intends to decrease the level of procrastination

of the people by making them value their time, and helping them to plan their daily

schedules in a convenient way.

Business Location

Figure 1 Vicinity Map

The figure shows the location of the available commercial space to be rented by

the business organization, which is in Nepomuceno Street in front of The National

Teachers College. It is accessible for the students and workers that is studying and

working near the vicinity.

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CHAPTER 2

MANAGEMENT ASPECT

This aspect includes the initial contribution of each partners to be use for starting

the business, the manpower requirements for the business operation, the rules and

regulations of the business for it to operate properly, as well as the company’s internal

controls.

Form of Business Organization

The type of business ownership would be a General Partnership. This was chosen

because it can easily be formed by the partners without having to contribute a large

amount of capital unlike corporations.

Table 1
Partners’ Contributions and Profit Sharing Ratio

Name Contributions Profit Sharing Ratio

Aguilar, Raymond T. ₱200,000 25%

Lim, Mariel O. ₱200,000 25%

Logan, Rebecca May V. ₱200,000 25%

Villarubia, Ma. Paula V. ₱200,000 25%

Total ₱800,000 100%

The organization consists of four partners. The partners equally contributed

₱200,000 with a total of ₱800,000 which serves as the initial investment of the company

to start the business operation. The partners will receive an equal distribution of the profits

or losses of the organization, which is 25% profit/loss ratio. It is in accordance with their

capital contributions.
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Vision – Mission

 Our vision

- To become one of the leading manufacturer of planner with high quality products

that satisfies consumer's specifications.

 Our mission

- To produce high quality, innovative and affordable planner that meets stringent

consumer's requirement.

- To continuously seek for improvements of our products, quality of work processes

and technology.

- To continuously improve our people.

- To operate efficiently and profitability.

- To achieve growth level higher than other planner companies.

 Core values

- QUALITY - we are dedicated to improve the quality of every product we make.

- RESPECT - we treat each other with respect and equality.

- INTEGRITY- honesty is the best policy.

- TEAMWORK - we unite as one.

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Organizational Structure

Partners

General Manager

Production Team Sales Team

Figure 2 Organizational Chart

The organizational structure includes a general manager, sales staffs and

production staffs. The general manager is responsible for monitoring the daily operations

of the organization, leading and directing the staffs, ensuring that the business operates

well and evaluating the business processes. The manager is also responsible for the

bookkeeping of the transactions. The staffs of the business organization, which includes

the staffs of production and sales, are under the supervision of the general manager. The

production team consisted of four members, they are responsible for assembling the

products, they are also responsible for the maintenance and repairs of the products, and

the sales team consisted of three members, who are responsible for selling the products

made.
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Manpower Requirements

 General Manager

o Job Qualification:

To be hired as a general manager, one should have a formal education, a

bachelor’s degree in business administration, management or a field related to their work.

Any gender with age 25-45 years old is applicable. He/she must be able to coordinate

resources including money, time and people and seamlessly organize and direct key

business operations.

o Job Description:

A General Manager directs and coordinates with different departments of the

company. General Manager directs all activities of divisional departments to work out and

implement long-term goals and to meet business and profitability growth objectives.

o Job Specification:

A General Manager is responsible for overseeing the daily operations of the

business organization, reviewing the analyses of costs, activities and operations to

determine the progress of a department toward stated goals and objectives, leading and

directing employees while ensuring that the employees maintain the implementation of

policies and good employee-employer relationship.

A General Manager develops, reviews, updates and implements business

strategic planning including sales and financial performance.

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 Production Staff

o Job Qualification:

A production staff is required to have a high school diploma and a vocational

diploma related to technology, and has the dexterity in physical activity. Any gender with

age 23-45 years old is applicable.

o Job Description:

Production Staff are professionals who work on a production line in a

manufacturing environment and perform a variety of duties to ensure production goals

are met for an organization. (Lucy Friend)

o Job Specification:

Production staff may perform one or several functions on a production line such as

assembly or fabrication of parts and products, testing finished products, transporting

materials and equipment to other areas or cleaning production areas.

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 Sales Staff

o Job Qualification:

To become a sales representative, one must have a good customer service skills,

communication skills, flexible and persistence. A sales representative must be able to

speak in a friendly way to the customers and to potential buyers, listening to their needs

and helping communicate options for them. They must be flexible and persistent since

not every customer is going to be a sale. Being able to bounce back if you lose a sale is

a key to the job. He/she must possess a high school diploma or any vocational

diploma/short course certificate. Any gender with age 20-40 years old is applicable.

o Job Description:

The sales staff is responsible for finding potential customers and persuading these

customers to purchase a company’s goods and services.

o Job Specification:

Sales representatives sell products to customers. They work with customers to find

what they want, create solutions and ensure smooth sales process. Sales representatives

will work to find new sales leads such as through business directories and client referrals.
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Legal Requirements and Steps of Business Registration

The first step is registering the business organization in Securities and Exchange

Commission (SEC). The basic requirements needed are Name Verification Slip, Articles

of Partnership (AP) and Joint affidavit of the partners to change partnership name (not

required if already stated in AP).

Second is registration of business name in the Department of Trade and Industry

(DTI). Requirements for partnership are Registration fee of Php500.00, SEC Certificate

(photocopy), Articles of Cooperation/Incorporation (photocopy), by-laws (photocopy),

board resolution authorizing signatory for and in behalf of the

cooperative/corporation/partnership, documentary stamps, two (2) copies 2 x 2 pictures

of authorized signatory (optional) and Application forms fully filled-up and signed.

Before commencing the business, the requirements are DTI registration or SEC

registration, whichever is applicable, Lease contract, Locational or zoning clearance,

Building permit and occupancy permit, Public liability insurance, Barangay clearance, Fire

safety certificate.

The business has to be registered with the Bureau of Internal Revenue (BIR)

before the commencement of operation for taxation purposes. It involves obtaining and

registering a tax identification number (TIN), obtaining BIR-registered official receipts and

invoices, registering the business’s books of accounts, and paying the applicable fees.

The application forms needed are BIR Form 1903 (Application Form), BIR Form 0605

(Payment Form), BIR Form 2000 (Documentary Stamp Tax On Lease) and the following

supporting papers Mayor's Permit or Application for Mayor’s Permit, Certificate of

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Business Name Registration from DTI or SEC Certificate of Registration for Partnership

and Residence certificate.

The next step is registration with the Social Security System (SSS). The registered

employer will be assigned an employer number for reference to the remittance of monthly

contributions. A person registering with the SSS for the first time as a prospective

employee should accomplish SSS Form E-1 (Personal Record) and submit it together

with the original/certified true copy and photocopy of any of the following: baptismal, birth

certificate, driver’s license, passport, Professional Regulation Commission (PRC) Card or

Seaman’s Book. In the absence of these documents, any two of the following, one of

which recent photo and date of birth, are acceptable. Afterwards, register with the

Philippine Health Insurance Corporation (PhilHealth). However, if the employer fails to

register through the PBR, the following shall be submitted Employer Data Record (ER1)

Form and PhilHealth Membership Registration Form (PMRF) for each employee.

Lastly, register with the Home Development Mutual fund (Pag-IBIG fund). All

employees who are or ought to be covered by the SSS are also covered by mandatory

membership in the Pag-IBIG fund. The employer registration requirements are

Employer’s Data Form (EDF [HQP-PFF-002]), Specimen Signature Form (SSF [HQP-

PFF-003]), SSS Certification (if already registered with SSS) and Present Proof of

Business Existence for partnership such as SEC Certificate of Partnership, Approved

Articles of Partnership and By-Laws and Business Permit/Mayor’s Permit.

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Project’s Timetable

Table 2
Gantt Chart

Year 2018-2019

September

November

December
October

January
August
Activities

Conceptualization of the project

Conducting
Assessment of the start-up costs
Feasibility Study
Looking for Financial Resources

Conduct market research

Conduct market
research
Find/decide on business location

Obtain a lease
Obtains necessary legal
requirements for business
registration and licensing
Find contractor for renovation of
Establish the store
infrastructure
Purchase of PPE and supplies
needed
Purchase of raw materials
Recruitment and training of
Employees
Launch marketing Marketing and advertising the
campaign product
Commencement of Start of the normal business
the business operations
The Gantt chart discusses the schedule in which the specific events of the entity

were intended to occur. The first activity that had conducted is the conceptualization of

the project, assessment of the start-up costs, as well as looking for capital resources to

finance the project, which would take for two months. The next activity was the market
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research analysis and also finding and deciding where the location of the business store

would be, the market research has been done for almost three months to complete and

two months on finding and deciding the physical location of the business. Included also

in the project’s time table was the establishment of infrastructure that includes obtaining

of the lease on the store location, processing of all necessary legal requirements and

business registration before setting up the business, finding the contractor who would

renovate and design the store, purchasing PPE, as well as the supplies needed,

purchasing raw materials and recruitment and training of the employees. Since the

business is only a small enterprise, these activities had only taken about one to three

months to complete. Launching marketing campaign includes product advertising. It is

done while the renovations are still ongoing. After the necessary requirements has been

complied with and all other things were prepared, that was the time that the Reminding

Planner would commence its operations.

Rules and Regulations

 Recruitment Policy

The company makes use of the external recruitment process wherein it hires

candidates or applicants who are qualified for such job vacancies. The company

assures that it gives equal opportunities to all interested applicants. Procedures for

application of interested individual are as follows:

1. Interested individuals can submit their résumé directly to the store premises

through the store manager or managing partners. They can also submit their

résumé online via the company’s e-mail address.

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2. The managing partners then review applicants’ résumé and determine if such

candidate conforms to the qualifications for such job vacancy.

3. If such applicant is qualified, he/she would receive a phone call or text message

as invitation for an interview at the office.

4. Once the applicant passed the interview, he/she would then undergo for a medical

examination to determine if the applicant is fit to work.

5. Submitting of other required documents such as NBI Clearance, Transcript of

Records and Diploma (high school or college, whichever is applicable), SSS, Pag-

ibig, PhilHealth, TIN, and 1x1 and 2x2 photos.

6. After submitting all the requirements needed, the applicant would be asked to sign

an employee’s contract, specifying the compensation, benefits and other

necessary information to be considered officially employed. The chosen applicant

would also be asked to fill up a bank account form for the deposit of salary.

7. Before the newly hired employee can officially start his/her duty on the store,

he/she would first undergo an orientation regarding company policies and training

for the job to perform effectively and efficiently.

 Employment Policy

All employees must have undertaken the usual process of application. Submit

all the documents required by the company such as NBI Clearance, Transcript of

Records and Diploma (high school or college, whichever is applicable), SSS, Pag-ibig,

PhilHealth, TIN, and 1x1 and 2x2 photos. Having medical examination is a must.

All newly hired employees would sign a contract valid for three months, which

is the probationary period and written agreement. Each performance would be

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observed and evaluated accordingly until the given period. Those who would pass

would be regularized and would be officially considered as part of the company. The

company is expecting the new regular employees to follow the organizational policies

and to continue rendering good performances.

 Resignation and Termination

Resignation and Termination are events wherein an employee ceases to be part

of the company’s workforce. An employee can either be terminated due to either

voluntary or involuntary dismissal.

o Voluntary Dismissal includes but not limited to the following;

- Resignation

An employee must submit an official written resignation letter addressed to

the general manager of the company 30 days prior to resignation. He/she should

give ample notice for such intention to leave to allow the manager to assess the

need of replacing the employee and process final salary and other payments

upon termination.

- Retirement

An employee can apply for a retirement when he/she reaches the retirement

age of 60.

- Expiration of Contract

An employee who already worked for three (3) months but was not able to

pass such standards needed to become a regular employee of the company is

terminated.
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o Involuntary Dismissal, on the other hand, includes the following;

- Dismissed for a cause

1. Breach of employment contact

2. Guilty of Fraud or any illegal actions against the company

3. Guilty of harassment

4. Guilty of unlawful behavior

5. Disregards company policies

- Dismissed without a cause

1. Service provided by the employee is no longer needed by the company

(Layoffs)

2. Redefining of position

 Compensation and Benefits Policy

o Compensation Policy

Salaries are paid in the local currency (Philippine Peso). All regular

employees are paid on a monthly basis and shall receive the salary payment every

15th and 30th day of the month. The cut-off date is every 10th and 25th day of the

month. The payment would be sent directly to employee's bank account.

o Benefits Policy

Employees of the company enjoy the following benefits:

1. The company gives 13th month pay to every regular employee at the end of

the year.

2. The company gives salary increase depending on the job performance of the

employees throughout a year of service which would be based in the

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objective criteria set by the company. And also with consideration of

company's profitability.

3. The company gives separation pay to all employees depending on the length

of service that they have rendered in the company. Length of service must

be minimum of one year.

 Policy on Attendance

o Work Schedules

All employees must abide by the work schedule assigned to them.

o Punctuality

All employees of the company are expected to be punctual when it comes to

coming and leaving the workplace. Each employee is required to time in before the

start of working hours and time out after the working hours. All employees are

prohibited to time in and out other colleague that is not present.

o Absences

The company has the right to investigate an employee due to frequent

absences and if reasonable for the company, an employee may be terminated.

o Under-time and Overtime

- Overtime

Working overtime would be allowed depending on the need of the company's

operations and must be approved by the managing partner. Employees that are

allowed to work overtime must render at least one (1) hour to be eligible for

overtime pay.
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Overtime is paid for hours worked beyond eight hours a day or 48 hours per

week. Employees would be compensated in equivalent to his regular wage plus

25%. Moreover, overtime work on regular holiday would be compensated in

equivalent to his rate on holiday plus 100%.

While compensation on special holiday is equivalent to the rate of the first

eight hours on a holiday plus 30%.

- Undertime

Working undertime or leaving early before the closing time would be allowed

for an employee if it is reasonable and provided that it has been approved by the

managing partner. Compensation for that day would be deducted by the

remaining time not rendered.

Late comings are considered as under time. Being late for several minutes

would be subjected to salary deduction proportion to the minute the employee

has been late.

o Vacation Leave and Sick Leave

- Vacation Leave

The Company grants vacation leave of 5 working days with full pay per

contract year to regular employees. This may be used in more than one occasion

as per employee's decision. In requesting for vacation leave, employee must ask

first for the permission and approval of the managing partner a week before the

intended day of the leave that he wish. Once approved, the employee must file

the vacation leave.

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- Sick Leave

The Company grants sick leave of 2 working days with full pay per contract

year to regular employees. In applying for sick leave, an employee must notify by

call the general manager and ask for his permission and approval. On the day

the employee resume to work, a written medical certificate by a certified

physician, stating the reason for the absence with signature, must be presented

to managing partner and file a sick leave.

In some cases, such as absence of an employee for two consecutive weeks,

he would be requested of having a Fit to Work Certificate to verify whether he is

now capable to work. Surprised visit would also be performed.

o Emergency Leave

The company grants paid emergency leave for maximum of two (2) working

days annually. This could be used when it is necessary for the employee to take off

from work due to unexpected circumstances happened to his immediate relatives.

It could be a death, illness, injury or other fortuitous event such as fire, flood and

other similar events. The employee should notify the managing partner as soon as

possible and specify the reason.

o Unscheduled Leave

If the leave is caused by a fortuitous event, the additional days are deducted to

the remaining days balanced for the leave. If the employee's reasons are sudden

settling of personal important matters, leisure activities, family gatherings, no

transportation and babysitting are unacceptable. The unreasonable overstayed

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period is treated as leave without pay and disciplinary action may be invoked, up to

and including termination.

In case, an employee who took a leave and is unable to return to work, he is

required to immediately inform the general manager and ask for leave extension.

The general manager would let the employee justify his reason for the delay, and

apply a professional judgment regarding the said case.

o Paternity and Maternity Leave

- Maternity Leave

The company grants full pay maternity leave to female employees who have

completed a full year of service. Employee should notify the managing partner in

advance of the expected time of leave and estimated return. Employees would

be entitled for maternity leave of 60 consecutive calendar days in case of normal

delivery or 78 consecutive calendar days in case of caesarian delivery. If an

employee has not completed one year’s service, she would be entitled to the

same number of days leave, but at half pay. It also covers all other allowance that

the employee enjoys as part of her salary.

Qualified employees may extend their time off with pay prior to or following

delivery, by utilizing a part or all of their vacation leave and sick leave benefits in

conjunction with maternity benefits. The company reserves the right to request a

certificate of confinement signed by the employee’s physician prior to granting

the maternity leave.

 22

- Paternity Leave

The company grants paid paternity leave of seven (7) days to married male

employees to help in looking after his newborn child. The employee must notify

the managing partner regarding the pregnancy of the legitimate wife and the

schedule of the expected delivery.

o Holiday

Since the company employs less than 10 workers, the employees may be

required to work during regular holiday and would be compensated twice of his

regular rate.

 Employees’ Conduct and Work Rules

Employee Code of Conduct outlines the company’s expectations regarding

employees’ behavior towards everyone within the company.

1. All employees are expected to protect the company’s legality by being ethical and

responsible when dealing with others.

2. All employees must respect their colleagues and avoid acts that would result to

discriminatory behavior or harassment.

3. All employees must take good care of company properties and equipment. They

are not allowed to take home any supplies or properties owned by the company

unless authorized.

4. All employees must possess integrity and professionalism in the workplace.

5. All employees must fulfill their job duties in an efficient and effective manner.

6. All employees must strictly follow their schedule and be punctual when coming and

leaving the workplace.

 23

7. All employees are expected to avoid any personal, financial, or other interests that

might hinder their willingness to perform their duties.

8. All employees are expected to be friendly and collaborative with others.

9. All employees must be open for communication with everyone in the workplace.

10. All employees are not allowed to use their mobile phones during their duties.

11. Employees are not allowed to smoke inside the store.

12. Employees are not allowed to enter the store premise under the influence of the

alcohol.

13. Gambling of any forms is strictly prohibited.

 Minor Offenses

1. Leaving place of duty while on duty without authorization.

2. Unauthorized absence from work without a valid reason.

3. Bad time keeping such as coming late or leaving work early.

4. Failing to produce a medical certificate when required to do so.

5. Poor quality of work, or failing to maintain company standards.

6. Sleeping on duty.

7. Failing to comply with company procedures.

8. Being in possession of company property without authorization.

9. Excessive personal use of store telephones or internet.

10. Abusive or insulting language, signs or behavior.

11. Intimidating or inciting employees, including in respect of unlawful work

stoppages.

12. Smoking in a non-smoking area.

 24

13. Poor maintenance of store equipment and materials.

14. Use of cellphone while on duty

15. Gambling on the store premise

Sanctions
1st Offense Verbal Warning
2nd Offense Written Warning
3rd Offense 1 to 3 day Suspension
4th Offense Dismissal

 Major Offenses

The following offenses are subject to automatic dismissal:

1. Desertion - Absent from work for 3 or more consecutive days without valid

reasons.

2. Fraudulent timekeeping, such as clocking via another employee or allowing

another employee to clock one in.

3. Having financial or other interests in the business of a supplier, competitor or any

interest in a business, which might be construed as a conflict of interest, without

written authorization from the company.

4. Theft or fraud from or in respect of the company, a fellow employee, or supplier.

5. Poor maintenance or neglect of equipment, material, vehicles or any company

property.

6. Using company property for personal purposes without written authority

7. Disclosing company records or information of a confidential nature without

authorization.

8. Any dishonesty, including conspiracy, theft (or attempted theft), fraud (or

attempted fraud).
 25

9. Misappropriation of company property.

10. Changing a medical certificate or using a false one.

11. Serious disrespect, impudence or insolence.

12. Harassment, including sexual harassment, unsolicited sexual behavior,

innuendo, suggestion or gesture and other inappropriate behavior of a sexual or

discriminatory nature.

13. Threat to employees or customers.

14. Assaulting a person or fighting with any person or persons linked to the company,

whether on or off company premises or unruly behavior.

15. Creating or causing or allowing any condition or situation at work that could

endanger the general safety or health of employees or other persons or which

caused injury.

16. Breach of confidentiality, whether in respect of information regarding or belonging

to the company or its clients.

17. Under the influence of alcohol or drugs on store premises (unauthorized)

18. In possession of alcohol or drugs not prescribed to the possessor on company

premises.

19. Unlawful distribution of alcohol or drugs on store premises.

20. Being in possession of a firearm or dangerous weapon on store premises, unless

authorized and in writing.

21. Breach of Employment Contract

 26

Internal Controls

 Physical Control

- The Company installs an integrated time clock system to prevent time theft.

- Timesheets should be created and approved before payroll is paid. The manager

should be the one who review the timesheets of the staff.

- Physical securities, such as locking premises, registers, filling cabinets and safes,

etc.

- Surveillance cameras used to reduce theft inside and out.

- Once asset is purchased, it should be recorded on an asset register with all relevant

details.

- Fire alarm with smoke detector and water sprinklers

- Implementation of fire extinguishers.

 Financial Control

o Cash receipts, Receivable and Sales

- General Manager should reconcile their daily deposit reports and compare these

reports to both what is deposited in the bank.

- General Manager performs monthly bank reconciliation timely.

- Each service staff, whoever is assigned as cashier on his/her shift, has his/her

drawer counted at the end of each shift.

- General Manager conducts daily cash reconciliations to reconcile cash received,

sales, cash payouts, and other cash items.

- The General Manager on a regular basis must review and approve daily sales

reports.
 27

o Cash Disbursements and Purchases

- General Manager should make sure purchases are supported by properly raised

original invoices.

- Purchases should match the bill from the vendor to the item receipt prior to

approval for payments.

o Payroll

- General Manager must carefully consider the role of each employee.

- Owners should review the payroll registers before and after they are submitted to

processing.

- General Manager records the computed payroll of the staffs and also the

partners.

 Inventory Control

- Purchase orders should be created and matched with item receipts. Then,

purchases should match the bill from the vendor to the item receipt prior to approval

for payments.

- Documentation should be created and maintained for all requisition of inventory by

the General Manager.

- Manager on a regular basis must review inventory for completeness and accuracy.

- The Economic Order Quantity decision tool is to use for raw materials inventory in

production and office supplies used in operation.

- The business must implement a desired raw materials inventory level.

 28

 Other Controls

- Undertaking reference checks on new staff to ensure they have the essential

qualifications by the general manager

- Background checks for all employees hired by the owners.

- Ensuring correct training for staff has been provided by the business.

- Clearly outline responsibilities and expectations.

- The owners should regularly review the list of the fixed asset and keep track of all

additions and deletions on a monthly basis.

- Monthly maintenance of machineries and equipment.

 29

CHAPTER 3

MARKETING ASPECT

This aspect includes the potential customers for the business’s target market, the

sampling area, method and size used for conducting marketing research, the results or

response of the consumers in the marketing research, and the possible price range that

is reasonable for the company’s customers.

Target Market

The business’s target market are the students, whose monthly allowance ranges

from ₱5,000 and above, and workers, whose monthly salary is above ₱15,000, regardless

of their age and gender, in which time management is very important. Those students

who are studying nearby Mendiola Street, including those in La Consolacion College

Manila, Centro Escolar University, San Beda University, College of the Holy Spirit, San

Sebastian College Recoletos, The National Teachers College, Technological Institute of

the Philippines Manila, and those who are working in those universities and colleges.

Target Area

Reminding Planner is located in a commercial space located in the first floor of

Yunitrade Marketing Center Corporation at 594 J. Nepomuceno Street Quiapo, Manila,

Quiapo, Manila, 1001 Metro Manila. It is located in front of The National Teachers College

wherein their students are expected to be one of the potential customers.

 30

The location is a walking distance from nearby universities and colleges like Centro

Escolar University and La Consolacion College Manila which were both part of our target

market.

Competitive Situation

This kind of competition is monopolistic because there are a few stores that offer

planners that are similar but not perfect substitutes. Others might be offering planners

with similar purpose but they are not identical products to what we offer in the market.

List of Indirect Competitors

1. Expressions – Units 2209 And 221, Mendiola Apatelle, Mendiola St, Quiapo,

Manila, 1008 Metro Manila

2. National Bookstore – 1921 Recto Ave, Sampaloc, Manila, 1008 Metro Manila

3. Starbucks – San Miguel, Manila, 1008 Metro Manila

4. Trendzonia – Licauco St C. M., 2122 Recto Ave, Quiapo, Maynila, 1001 Kalakhang

Maynila

Sampling Area

The survey questionnaires for the feasibility study were distributed to the

respondents via online Google survey form, with the use of social media, such as

Facebook. The link of the survey form was sent to the social media accounts of the

students, who are the target market and respondents of the business, for them to fill it up.
 31

Sampling Method

The research sampling that used in this study was a simple random sampling

technique. This method was used to get a representative of the population being studied

that would best represent the whole population.

In order to determine the market’s behavior and response to our product, the

proponents gather information through survey questionnaires. This is also to provide

insight regarding the demand of the market which will be essential in determining the

profitability of the product and the company. The selected samples were the one who

answered the provided questionnaire by the proponents along with the letter of consent.

The proponents of the study prepared a survey questionnaire. The questionnaires were

distributed to several respondents that were composed of college students and

professors from chosen schools. The questions in the survey are made easy to

understand. The survey form is composed of 2 parts, the demographic section, which

includes the name (optional), gender, age, and the respondents’ monthly allowances or

monthly salaries, and the survey questions part, which composed of 9 questions with the

aim to know whether the respondents are willing to buy the product, their preferred price,

and other questions that will be the basis for the future development. The proponents of

the study assured confidentiality of their survey sheets. The proponents also understand

that people’s consciousness about identity may also affect their honesty and

effectiveness in answering the survey, and so, the proponents did not include the option

of writing the respondents’ name. There were no incentives offered for participating in the

study.
 32

Sample Size

In determining the sample size of the target population, the Slovin’s formula was

used.

𝑁
𝑛=
1 + 𝑁𝑒 2

38,262
𝑛=
1 + 38,262 𝑥 .102

38,262
99.73 =
383.62

Where:

n = number of samples

N = total population

e = margin of error

To arrive with the sample size, the total population size will be divided by the

squared value of the margin of error multiplied by the total population size then add by 1.

The total population size based on our target market is 38,262, while the margin of error

used is 10% resulting to 100 sample size after using the formula.
 33

Survey Results

38%

Male
Female

62%

Figure 3 Respondents’ Age

Figure 3 show that the majority of the respondents’ gender are female, which is

equal to 68%, while the remaining 32% are male.

 34

6%

21%

15 – 20 years old
21 – 25 years old
26 years old and above

73%

Figure 4 Respondents’ Age

Figure 4 show that the majority of the respondents’ age ranges from 21 to 25 years

old which is equal to 73%, while 6% of the respondents’ age ranges from 26 years old

and above.
 35

10%
16%

13%
Below ₱5,000 allowance
₱5,000 – ₱6,000 allowance
₱6,001 – ₱7,000 allowance
₱7,001 and above alllowance
6%
Below ₱15,000 salary
₱15,001 – ₱25,000 salary
4%
₱25,001 and above salary
36%

15%

Figure 5 Respondents’ Monthly Allowance or Salary

Figure 5 show that most of the students’ monthly allowance ranges from ₱5,000

to ₱6,000 which constitutes 36%, and most of the employed have salaries ranges from

₱15,000 to ₱25,000 with 13% of the total response.

 36

13%

Yes
No

87%

Figure 6 Respondents that Use Planner

Figure 6 show that out of 100 respondents, 87% of which are using planner, while

13% do not.
 37

9% 6%

14%

0
1
2
3
4
19% 52%

Figure 7 Frequency of Buying Planner

Figure 7 show that most of the respondents buy a single planner a year which is

equal to 57%, while 4% of the respondents are buying 4 planners in a single year.
 38

26%

Plain design
Doodle design
Floral design
57% Leather design
8%

9%

Figure 8 Respondents’ Preferred Cover

Figure 8 show that the most preferred design for cover is the leather design,

which comprises of 57% of the respondents, while doodle design has the least result

with 8% of the respondents.

 39

14%
17%

Mini
18%
Pocket
Personal
A5

51%

Figure 9 Respondents’ Preferred Size

Figure 9 show that the respondents’ most preferred size of the planner is mini size,

which is equal to 51% of the response, while the least preferred are pocket and a5 size,

which have the same result of 10%.

 40

26%

National Bookstore
Starbucks
Divisoria/168/199
Any craft stores
5%

63%

6%

Figure 10 Place Where the Respondents Usually Buy Planner

Figure 10 show that most of the respondents bought their planner in National

Bookstore with 63% of the respondents, while the next is in any craft stores, with 26% of

the total respondents.

 41

10%

Yes
No

90%

Figure 11 Preference on Buying in a Planner/Physical Store

Figure 11 show that most of the respondent are willing to buy in a planner store,

with an equal of 90% response over 100 respondents, while 10% are not willing to buy in

a planner store.
 42

6% 1%

Features
46%
Design
Price
Brand
47%

Figure 12 Important Qualities of a Planner

Figure 12 show that there are two results that almost have the same results, the

features with 46% of the respondents and the design with 47% of the respondents.
 43

8%

Yes
No

92%

Figure 13 Willingness to Buy Planner with Alarm

Figure 13 show that majority of the respondents are willing to buy a planner with

an alarm, which is equal to 92% of the respondents, while 8% of which are not willing to

buy.
 44

6%

9%

₱500-₱700
₱701-₱900
₱901 and above

85%

Figure 14 Preferred Price

Figure 14 show that the preferred price of the respondents in buying the Reminding

Planner ranges from ₱500 to ₱700, which comprises of 85% of the respondents, while

6% of the respondents prefer a price that ranges from ₱901 and above.
 45

Demand Analysis

 Historical and Projected Population

Table 3
Historical Population

School Name 2016 2017 2018

Centro Escolar University - Manila 15,528 12,652 12,190
College of the Holy Spirit of Manila 661 462 341
La Consolacion College - Manila 1,426 821 825
The National Teachers College 6,460 6,987 6,673
San Beda University 6,290 5,988 5,785
San Sebastian College - Recoletos 3,467 3,408 3,449
Technological Institute of the Philippines - Manila 8,915 7,504 6,661
Total 42,747 37,822 35,924
Table 3 shows the historical population size of the students enrolled and

professors working from various universities and colleges, who are the main target market

and respondents of the study, from year 2016 to 2018 as presented in the table. The

historical population data would be used by the proponents in projecting the future

population of those that are studying and working in La Consolacion College Manila,

Centro Escolar University, San Beda University, College of the Holy Spirit, San Sebastian

College Recoletos, The National Teachers College, Technological Institute of the

Philippines Manila. The data was taken from the statistics in the website of the

Commission on Higher Education.

 46

Table 4
Projected Population

School Name 2019 2020 2021

Centro Escolar University - Manila 13,179 13,039 12,900
College of the Holy Spirit of Manila 461 448 435
La Consolacion College - Manila 974 949 924
The National Teachers College 6,724 6,733 6,742
San Beda University 5,979 5,958 5,937
San Sebastian College - Recoletos 3,440 3,439 3,438
Technological Institute of the Philippines - Manila 7,506 7,412 7,318
Total 38,263 37,978 37,694
Table 4 shows the projected population of the students and workers in the colleges

and universities for the incoming years based on the historical data. The table shows a

decreasing movement on the projected populations from 2019 to 2021. The method used

in projecting the future populations is statistical straight line method.

 Historical and Projected Annual Demand

Table 5
Determination of Frequency of Reminding Planner

Number % to the
Number of
of Times Total Frequency
Respondents
per yearSample
Not buying a planner 6 0 6% 0
Once a year 52 1 52% .52
Twice a year 19 2 19% .38
Thrice a year 14 3 14% .42
Four times a year 9 4 9% .36
Total 100 100% 2
Table 5 shows the frequency of Reminding Planner. The average frequency was

determined through averaging the number of respondents in the frequency of buying

planner. See figure no. 7.

 47

Table 6
Historical Demand of Reminding Planner

Historical %
Capable
Capable Potential
Population of % of
of Customers Historical
Year based on Affording
Affording Willing
Willing to
Frequency
the to Buy Demand
Target the Use
Market Product
Product
2016 42,747 78% 33,343 92% 30,676 2 61,352
2017 37,822 78% 29,501 92% 27,141 2 54,282
2018 35,924 78% 28,021 92% 25,779 2 51,559
Table 6 shows the historical demand of Reminding Planner. The 78% capable of

affording the product where determined through the survey results on monthly allowance

or salary, see figure no. 5. The 92% willing to buy our product came from the survey

results in willingness to buy planner with alarm, see figure no. 13. The frequency is

determined in table no. 5.

Table 7
Projected Demand of Reminding Planner

Historical %
Capable
Population Capable Potential
of % of
of Customers Historical
Year based on Affording
Affording Willing
Willing to
Frequency
Demand
Target the to Buy
the Use
Market Product
Product
2019 38,263 78% 29,845 92% 27,457 2 54,914
2020 37,978 78% 29,623 92% 27,253 2 54,506
2021 37,694 78% 29,401 92% 27,049 2 54,098
Table 7 shows the projected demand of Reminding Planner. The projected

demand is decreasing because of the decrease in historical population.

 48

Supply Analysis

Table 8
Historical Supply

Average Customers per Number of Historical Supply per

Year
Year Competitors Year
2016 1,044 3 3,132
2017 888 4 3,552
2018 888 4 3,552
Table 8 shows the average customers per year, number of competitors and

historical supply for the years 2016 to 2018.

Schedule 1
Average Customers per Year

Average 2016 2017 2018

Monthly Average of Customers 87 77 77
Months in a Year 12 12 12
Yearly Average 1,044 888 888
Number of Competitors 3 4 4
Total Supply 3,132 3,552 3,552

Table 9
Projected Supply

Year a b X b(X) Projected Supply (Yc)

2019 3,552 210 -1 -210 3,342
2020 3,552 210 0 0 3,552
2021 3,552 210 1 210 3,762
Table 9 shows that the supply of the business’s competitors would be increasing

from 2019 to 2021. The method used in the computation of the Projected Supply is the

Statistical Parabolic Method, wherein the formula used is YC = a + bX

Where Yc = projected supply

a = aggregate mean

b = rate of variability of historical data

x = years from the median year

 49

The amounts used in the following formulas were derived from the schedule of

historical values.

a = (ΣX4)(ΣY) – (ΣX2)(ΣX2Y)
N(ΣX4) – (ΣX2)2

b = ΣXY
ΣX2

Schedule 2
Historical Values

Year Y X X2 X4 XY X2Y
2016 3,132 -1 1 1 -3,132 3,132
2017 3,552 0 0 0 0 0
2018 3,552 1 1 1 3,552 3,552
Total 10,236 0 2 2 420 6,684

Demand Gap

Table 10
Historical Demand – Supply Analysis

Historical Historical
Year Historical Demand Gap
Demand Supply
2016 61,352 3,132 58,220
2017 54,282 3,552 50,730
2018 51,559 3,552 48,007
Table 10 shows that there is a decreasing historical demand gap from 2016 to

2018.
 50

Table 11
Determination of Capacity

A B C D E F
Number of Number (A x B) (C x 312) Estimated (D x E)
Units of Percentage Projected
Year Capacity Capacity
Produced Cycles of Capacity Annual
Per Day Per Year
per Cycle per Day Availed Capacity
2019 8 2 16 4,992 80% 3,994
2020 8 2 16 4,992 85% 4,243
2021 8 2 16 4,992 90% 4,493
Table 11 shows the projected capacity based on the production capacity computed

under the technical aspect. The estimated percentage of capacity availed is based on the

conservative estimate of the proponents. It is increasing by five percent per year from

2019 to 2020.

Table 12
Projected Demand – Supply Analysis

A B C D E F G
(A - B) (C ÷ A) Projected (B + E) (E ÷ F)
Projected Projected
Year Projected Demand Annual Market Market
Total Total
Demand Gap % Capacity Size Share
Demand Supply
Gap per Year
2019 54,914 3,342 51,572 94% 3,994 7,336 54%
2020 54,506 3,552 50,954 93% 4,243 7,795 54%
2021 54,098 3,762 50,336 93% 4,493 8,255 54%
Table 12 shows that the projected demand gap is decreasing from 2019-2020. It

also shows the market size and the market share for he projected years.
 51

Pricing Study

Table 13
Comparison of Prices

Reminding National
Expressions Starbucks Trendzonia
Planner Bookstore
Planner ₱559 ₱269.99 ₱551.50 ₱800 ₱250
Table 13 shows the comparison of prices of the planners the company offered with

those of the indirect competitors.

Table 14
Proposed Price for Reminding Planner

Reminding Planner
Product Cost ₱368.42
Break-Even Price ₱542.11
Mark-up Percentage 3.12%
Selling Price (Inclusive of VAT) ₱559
Table 14 shows the proposed price for the planner we offer.

Marketing Program, Mix and Strategies

 Product

The reminding planner has a built-in alarm that allows users to set the time of their

schedules or meetings ahead. It has a minimalist design that pulls customers of different

gender and has motivational quotes indicated in every section of the planner so that the

users would not be just reminded of their time but also of their value in life. This planner

is made to help the users to be more productive and stay on track of their goals and

schedules. By adding an alarm to our product, users may avoid missing out of their plans

and can maximize their time.

 52

 Price

The Reminding Planner has a cost of ₱559, the pricing strategy used to come up

with the product’s price is psychology pricing. It is used to encourage customers to

respond on emotional levels rather than logical ones by setting the price to 559 instead

of 560.

 Place

The Reminding Planner’s location is near the National Teachers College, it is easily

accessible for the students that are studying in the nearby universities and colleges, and

also to the workers of those schools.

 Promotion

The product uses an online advertisement to reach potential customers and to

promote the product widely. The reminding planner targets customers especially on the

beginning of the year.

 53

CHAPTER 4

TECHNICAL ASPECT

This aspect includes the process flowchart in producing the company’s product,

the raw materials and equipment needed in manufacturing the product, and the related

costs needed in creating the product.

Purchase Process

Purchase A
requisition

No
Complete and Best
Disqualified
approve request offer

Yes
Request for
Quotation Qualified
Supplier

Supplier’s
Quotation
Purchase
Order

Prepare
Purchases Order

Figure 15 Purchase Process Flow Chart

The process usually starts with a need for materials. Then preparation of purchase

requisition follows which contain the detailed requirements of materials. Once the request

is completed and approved, accounting would take place. Afterwards, requests for
 54

quotations are raised, and then suppliers will send their quotations. It will be reviewed

and registered in the accounting department in order to choose the best offer which is

typically based on price, availability and quality. Then the purchase order will be given to

the qualified supplier.

Production Process

Start

Cutting the papers in half (16mins)

Printing of line and calendar on printer (40mins)

Cutting and separating lined sheets (32mins)

Assemble of covers (16mins)

Attaching alarm clock machine

on the covers (40mins)

Addition on front and back covers (8mins)

Assemble of notebooks altogether (32mins)

Binding (16mins)

Packaging (8mins)

End

Figure 16 Production Process Flowchart

 55

Figure 16 shows the flow of the production of Reminding Planner. The process

starts with cutting the paper and cover in half which would take 16 minutes of production

time. Once it is cut, the papers are ready for printing of lines and calendar outline that

would take 40 minutes. After the printing of paper, the papers will undergo into cutting

and separating each sheet that would last for 32 minutes of production time. The process

will continue with assembling the cover of the planner that would consume 16 minutes of

the time. The next step would be the attaching of alarm clock machine on the cover of the

planner which would last for 40 minutes. It would follow by adding the front and back

cover of the planner that is subject for 8 minutes of production time. Afterwards, the

notebook will assemble altogether, making sure of all the parts were completely put

together, and this operation would take 32 minutes of the time. Once it is done, the

planner will proceed to binding process which would last for 16 minutes. Once the binding

process is finished, the planner is ready the last process which is packaging that would

end after 8 minutes. Once everything is done, the finished product will be stored at the

storage room. The total production duration is 240 minutes or 4 hours.

 56

Selling Process

Arrival of Sales Staffs Does the Customer

customers greeting customer like leaves
the planner?

Sales staffs accept

the payment

Thanking
customers
Figure 17 Selling Process Flowchart

The flowchart above explains the flow of business’ selling process. This would start

from the arrival of the customers at the store, followed by the sales staffs greeting. The

sales staffs would show to the customers the planner that we have and its new features,

once the customers like it they will now proceed to the payment section and the sales

staffs would accept the payment and the customers would receive a receipt for their

purchase and would end thanking the customers. For instance, when a customer does

not like the planner, this would result to customer leaving the store.
 57

Production Schedule

Table 15
Production Schedule – First Cycle

Productio SU MON TUE WED THURS FRI SAT

n Process N
First Cycle
Cutting the 8:00am- 8:00am- 8:00am- 8:00am- 8:00am- 8:00am-
papers in 8:16am 8:16am 8:16am 8:16am 8:16am 8:16am
half.
(16mins)
Printing of 8:16am- 8:16am- 8:16am- 8:16am- 8:16am- 8:16am-
lines and 8:56am 8:56am 8:56am 8:56am 8:56am 8:56am
calendar
outline on
printer.
(40mins)
Cutting and 8:56am- 8:56am- 8:56am- 8:56am- 8:56am- 8:56am-
separating C 9:28am 9:28am 9:28am 9:28am 9:28am 9:28am
lined L
sheets. O
(32mins) S
Assemble E 9:28am- 9:28am- 9:28am- 9:28am- 9:28am- 9:28am-
of pages. D 9:44am 9:44am 9:44am 9:44am 9:44am 9:44am
(16mins)
Cutting and 9:44am- 9:44am- 9:44am- 9:44am- 9:44am- 9:44am-
separating 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am
covers.
(16mins)
Assemble 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am
of covers. - - - - - -
(16mins) 10:16am 10:16am 10:16am 10:16am 10:16am 10:16am
Attaching 10:16am 10:16am 10:16am 10:16am 10:16am 10:16am
alarm clock - - - - - -
machine 10:56am 10:56am 10:56am 10:56am 10:56am 10:56am
on the
covers.
(40mins)
Addition of 10:56am 10:56am 10:56am 10:56am 10:56am 10:56am
front and - - - - - -
back 11:04am 11:04am 11:04am 11:04am 11:04am 11:04am
covers.
(8mins)
 58

Assemble 11:04am 11:04am 11:04am 11:04am 11:04am 11:04am

of - - - - - -
notebooks 11:36am 11:36am 11:36am 11:36am 11:36am 11:36am
altogether.
(32mins)
Binding 11:36am 11:36am 11:36am 11:36am 11:36am 11:36am
(16mins) - - - - - -
11:52am 11:52am 11:52am 11:52am 11:52am 11:52am
Packaging 11:52am 11:52am 11:52am 11:52am 11:52am 11:52am
(8mins) - - - - - -
12:00pm 12:00pm 12:00pm 12:00pm 12:00pm 12:00pm

Table 16
Production Schedule – Second Cycle

Production SUN MON TUE WED THURS FRI SAT

Process
Second Cycle
Cutting the 1:00pm- 1:00pm- 1:00pm- 1:00pm- 1:00pm- 1:00pm-
papers in 1:16pm 1:16pm 1:16pm 1:16pm 1:16pm 1:16pm
half.
(16mins)
Printing of 1:16pm- 1:16pm- 1:16pm- 1:16pm- 1:16pm- 1:16pm-
lines and 1:56pm 1:56pm 1:56pm 1:56pm 1:56pm 1:56pm
calendar
outline on
printer.
(40mins)
Cutting and 1:56pm- 1:56pm- 1:56pm- 1:56pm- 1:56pm- 1:56pm-
separating C 2:28pm 2:28pm 2:28pm 2:28pm 2:28pm 2:28pm
lined L
sheets. O
(32mins) S
Assemble of E 2:28pm- 2:28pm- 2:28pm- 2:28pm- 2:28pm- 2:28pm-
pages. D 2:44pm 2:44pm 2:44pm 2:44pm 2:44pm 2:44pm
(16mins)
Cutting and 2:44pm- 2:44pm- 2:44pm- 2:44pm- 2:44pm- 2:44pm-
separating 3:00pm 3:00pm 3:00pm 3:00pm 3:00pm 3:00pm
covers.
(16mins)
Assemble of 3:00pm- 3:00pm- 3:00pm- 3:00pm- 3:00pm- 3:00pm-
covers. 3:16pm 3:16pm 3:16pm 3:16pm 3:16pm 3:16pm
(16mins)
 59

Attaching 3:16pm- 3:16pm- 3:16pm- 3:16pm- 3:16pm- 3:16pm-

alarm clock 3:56pm 3:56pm 3:56pm 3:56pm 3:56pm 3:56pm
machine on
the covers.
(40mins)
Addition of 3:56pm- 3:56pm- 3:56pm- 3:56pm- 3:56pm- 3:56pm-
front and 4:04pm 4:04pm 4:04pm 4:04pm 4:04pm 4:04pm
back
covers.
(8mins)
Assemble of 4:04pm- 4:04pm- 4:04pm- 4:04pm- 4:04pm- 4:04pm-
notebooks 4:36pm 4:36pm 4:36pm 4:36pm 4:36pm 4:36pm
altogether.
(32mins)
Binding 4:36pm- 4:36pm- 4:36pm- 4:36pm- 4:36pm- 4:36pm-
(16mins) 4:52pm 4:52pm 4:52pm 4:52pm 4:52pm 4:52pm
Packaging 4:52pm- 4:52pm- 4:52pm- 4:52pm- 4:52pm- 4:52pm-
(8mins) 5:00pm 5:00pm 5:00pm 5:00pm 5:00pm 5:00pm

Store Schedule
The store opens at exactly 11 in the morning and closes at 8 in the evening from

Mondays to Saturdays except Sundays and some holidays such as New Year’s Day, Holy

week, All Saints Day and Christmas Day.

Office Schedule

Office hours start at exactly 1 in the afternoon and ends at 9 in the evening from

Mondays to Saturdays, except for certain holidays, wherein the store itself is closed. The

general manager will take care of the related works.

 60

Production Capacity

Table 17
Production Capacity Schedule

Process Length of Time

Cutting the paper in half 16 minutes
Printing of lines and calendar chart on 40 minutes
printer
Cutting and separating lined sheets 32 minutes
Assembling of pages 16 minutes
Cutting and separating covers 16 minutes
Assemble of covers 16 minutes
Attaching alarm clock machine on the 40 minutes
covers
Addition of front and back covers 8 minutes
Assemble of notebooks altogether 32 minutes
Binding 16 minutes
Packaging 8 minutes
Total Number of Production Hours per 240 minutes or 4 hours
Cycle
Total Number of cycles per Day 2 cycles
Total Number of Batches per cycle 8 batches
Total Number of Reminding Planners 16 pieces
per Day
During the operation, the production cycle is divided into two; one in the morning

and one in the afternoon. Four employees will be assigned in the production area. The

first cycle will start at 8 in the morning and will end in 12 in the afternoon which consists

of preparing all the raw materials up to the last process which is the packaging.

Moreover, the afternoon schedule will start at 1pm and ends at 5pm. The

production staff will still be in charge for the production. The process applied will be the

same as the morning schedule. There will be 8 planners produced in the morning as well

as the afternoon, with a total of 16 planners in a daily production.

 61

Table 18
Manpower Schedule

Employee Shift Schedule

MON TUE WED THURS FRI SAT SUN
General 1:00pm- 1:00pm- 1:00pm- 1:00pm- 1:00pm- 1:00pm- REST
Manager 9:00pm 9:00pm 9:00pm 9:00pm 9:00pm 9:00pm DAY
Production 8am- 8am- 8am- 8am- 8am- 8am- REST
Staff A 12pm 12pm 12pm 12pm 12pm 12pm DAY
1am- 1am- 1am- 1am- 1am- 1am-
5pm 5pm 5pm 5pm 5pm 5pm
Production 8am- 8am- 8am- 8am- 8am- 8am- REST
Staff B 12pm 12pm 12pm 12pm 12pm 12pm DAY
1am- 1am- 1am- 1am- 1am- 1am-
5pm 5pm 5pm 5pm 5pm 5pm
Production 8am- 8am- 8am- 8am- 8am- 8am- REST
Staff C 12pm 12pm 12pm 12pm 12pm 12pm DAY
1am- 1am- 1am- 1am- 1am- 1am-
5pm 5pm 5pm 5pm 5pm 5pm
Production 8am- 8am- 8am- 8am- 8am- 8am- REST
Staff D 12pm 12pm 12pm 12pm 12pm 12pm DAY
1am- 1am- 1am- 1am- 1am- 1am-
5pm 5pm 5pm 5pm 5pm 5pm
Sales Staff A 11am- 11am- 11am- 11am- 11am- 11am- REST
8pm 8pm 8pm 8pm 8pm 8pm DAY
Sales Staff B 11am- 11am- 11am- 11am- 11am- 11am- REST
8pm 8pm 8pm 8pm 8pm 8pm DAY
Sales Staff C 11am- 11am- 11am- 11am- 11am- 11am- REST
8pm 8pm 8pm 8pm 8pm 8pm DAY
 62

Business Location

Figure 18 Vicinity Map

Figure 18 shows the map location of the commercial space to be rented by the

business, which is in the Nepomunceno Street, in front of the National Teachers College

for an easy access to the students and workers of the nearby universities and colleges.
 63

Figure 19 Actual Façade

Figure 19 shows the proposed business location including the office, warehouse

and store is located at Nepomuceno Street, in front of National Teacher’s College. It is

located in Manila within the area of university belt which will provide easy access to

potential customers and skilled workers that may found in the area. The place is fully

ventilated and has electricity and water supply.

The whole place shall occupy a floor area of 160 square meters and the room

height is at 12 feet, enough for equipment and office supplies to fit in. The area is divided

in the portion of production area, the office space and the store itself.
 64

Floor Area of the Business

Figure 20 Floor Plan

 65

Property, Plant and Equipment

Table 19
Production Machinery and Equipment

Est.
Specifica usef Uni Unit Invoice Input Total Deprecia
Name Image
tion ul ts cost price tax cost tion
life
HP
DeskJet
Ink
Advantag
Printe ₱6,679. ₱1,335.8
e Ultra 5 2 ₱3,795 ₱7,590 ₱910.8
r 4729
2 4
Multifunct
ion
Printer
Durable
Glue
Book Binding
bindi Wireless
13,238. 26,477. 3,177.2 23,299.
ng Hot 5 2 4,659.97
Thermal
56 12 5 87
machi
ne Book
Machine
Binder
TOTA ₱17,033 ₱34,067 ₱4,088 ₱29,979 ₱5,995.8
L .56 .12 .05 .07 1
Table 19 discusses all the necessary machinery and equipment to be used in the

production of the Reminding Planner.

 66

Table 20
Production Furniture and Fixtures

Est.
Specificati Usef Unit Unit Invoic Input Total Depreciati
Name Image
on ul s cost e price vat cost on
life

Lifetime
Light
Commerci ₱2,40 ₱12,00 ₱1,44
Table 5 5 ₱10,560 ₱2,112
al Folding 0 0 0
Table 4
Feet 2940

Uratex
Americana
Chair 5 4 350 1,400 16.8 1,232 246.4
monoblock
chair
Tailee
Furniture
Storag ST-300BF
e 3-Layer
5 2 770 1,540 184.8 1,355.2 271.04
cabin Utility
et Cabinet
Organizer
(Wenge)

Philips
Smartbrigh
LED t LED P254.
5 4 530 2,120 1,865.6 373.12
light Batten 4
20w 6500k
1200mm

Standard
Ceilin
SOF 18Q 5 2 1,825 3,650 438 3,212 642.4
g fan
Ceiling Fan

TOTA ₱6,22 ₱20,71 ₱2,33 ₱18,224

₱3,644.96
L 5 0 4 .8
Table 20 shows all the needed office furniture and fixtures in the production area.
 67

Table 21
Office Machinery and Equipment

Est.
Specifica Usef Unit Unit Invoice Input Total Deprecia
Name Image
tion ul /s cost price tax cost tion
life

Union 0.5
Air HP room
₱1,370.1
conditio air 5 1 ₱7,785 ₱7,785 ₱934.2 ₱6,850.8
6
ner condition
er

HP all-in-
one pc
with free 14,036. 102,933. 20,586.7
Desktop 5 3 38,990 116,970
keyboard 4 6 2
and
mouse

HP
DeskJet
Printer Ink 5 1 4,985 4,985 598.2 4,386.8 877.36
Advantag
e 3835

Fingerpri
nt
Attendan
ce Time
Clock
Punch
Card
Bundy 3,934.8
Time 5 1 3,934.80 472.18 3,462.62 692.52
clock 0
Attendan
ce
Biometric
Time
Attendan
ce
System
₱55,694 ₱133674 ₱16,040 ₱117,63 ₱23,526.
TOTAL
.80 .80 .98 3.82 76
Table 21 indicates all the necessary office machinery and equipment in the

production of Reminding Planner.

 68

Table 22
Office Furniture and Fixtures

Est.
Invoic
Specifica Usef Unit Unit Input Total Deprecia
Name Image e
tion ul /s cost Tax Cost tion
price
life

Office
Office Table- ₱2,93 ₱11,7 ₱1,409 ₱10,334 ₱2,066.9
5 4
table FOT2448 6 44 .28 .72 4
A

Ergodya
Office mic 1055.5 7,740.4
5 4 2,199 8,796 1,548.10
chair office 2 8
chair

Handy
Filing movable
15,60
cabine drawer 5 2 7,800 1,872 13,728 2,745.6
0
t with 4
drawers

Hot and
Water
warm 3,255.1
dispen 5 1 3,699 3,699 443.88 651.02
water 2
ser
dispenser

LED
20W 5 2 530 1060 127.2 932.8 186.56
light

Wall Classic
5 1 350 350 42 308 61.6
clock clock

₱18,0 ₱41,2 ₱4,949 ₱36,299 ₱7,259.8

TOTAL
40 49 .88 .12 2
Table 22 shows all the necessary office furniture and fixture that the office of

Reminding Planner needed.

 69

Table 23
Store Machinery and Equipment

Est.
Specifica Use Unit Unit Invoice Input Total Deprecia
Name Image
tion ful /s cost price tax Cost tion
life
Union
Air 0.5 HP
₱6,850. ₱1,370.1
conditio room air 5 1 ₱7,785 ₱7,785 ₱934.2
8 6
ner conditio
ner
Casio
Ecr-
Comput
Cash er Pcr-
7,343.2 7,343.2 6,462.0
register T280 5 1 881.19 1,292.41
4 4 5
machine Black
Electroni
c Cash
Register
CP PLUS
Network
HD IR
CCTV CAMERA 5 1set 8,900 8,900 1,068 7,832 1,566.4
CCTV
PACKAG
E2
Cyclone
5lbs and
10lbs
Fire fire
Extingui Extinguis 5 1 2,000 2,000 240 1,760 352
sher her ABC
dry
chemical
bundle
₱26,02 ₱26,02 ₱3,123 ₱22,90 ₱4,586.9
TOTAL
8.24 8.24 .39 4.85 7
Table 23 discusses all the necessary machinery and equipment to be used in the

store of Reminding Planner.

 70

Table 24
Store Furniture and Fixtures

Est U
. n
Us i Unit Invoice Input Total Deprecia
Name Image Specification
efu t cost price tax cost tion
l /
life s

Retail book
Display
display rack 5 1 ₱2,500 ₱2,500 ₱300 ₱2,200 ₱440
rack
3D model

LED
20W 5 2 530 1,060 127.2 932.8 186.56
light

Toilet Washdown
5 1 4000 4000 480 3520 704
bowl toilet bowl

Toilet Bathroom
bowl wall hung
5 1 1,590 1,590 190.8 1,399.2 279.84
for ceramic male
boys urinal

Bathro Wall-
om attached 5 1 2,500 2,500 300 2,200 440
basin basin
TOTAL ₱11,120 ₱11,650 ₱1,398 ₱10,252 ₱2,050.4
Table 24 shows all the furniture and fixtures that are needed in the store of

Reminding Planner.
 71

Table 25
Production Tools – not subject to depreciation

Name Image Specification Unit/s Unit cost Invoice Input tax Total cost
price
Paper cutter
Paper
wood type, 4 ₱120 ₱480 ₱57.6 ₱422.4
trimmer
A4 size

MMT hot
Glue gun melt glue 4 126 504 60.48 443.52
gun

Cutter 4 118 472 56.64 415.36

Cutter
10pcs/cube 1 25 25 3 22
blade

Ruler 12 inches 4 16.75 67 8.04 58.96

TOTAL ₱405.75 ₱1,548 ₱185.76 ₱1,362.24

Table 25 shows all the necessary production tools to be used in making the

Reminding Planner.

Table 26
Office Supplies

Unit Invoice Input

Name Image Specification Unit cost Total Cost
/s price vat
148 x 105
mm,
100 copy
Invoice
sheets 1 ₱150 ₱150 ₱18 ₱132
book
perforated
with carbon
page
 72

Best quality
Long 1
paper, 500
bond rea 336 336 40.32 295.68
sheets per
paper m
ream

journal
Valliant 2 39.75 79.5 9.54 69.96
notebook

Long Kraft
Folder 5 12 60 7.2 52.8
folder

2
9mm,
paper box
12pcs per 124 248 29.76 218.24
clamp es
box

Office stapler
Stapler 1 320 320 38.4 281.6
no.35

1
box
staple
No.35 (500 158.75 158.75 19.05 139.7
wire
0pcs
)

1
Black HBW box
Ballpen 240 240 28.8 211.2
ballpen (12p
cs)

TOTAL ₱1,380.5 ₱1,592.25 ₱191.07 ₱1,401.18

Table 26 indicates all the needed office supplies in Reminding Planner. The office

supplies are not expected to last for more than a year and are current assets that are

purchased and disposed within the same year.

 73

Table 27
Raw Materials and Indirect Materials

Specificatio Unit Invoice

Name Image Units Input tax Total Cost
n Cost price
 Inkjet
friendly,
80shee
ts/ pack
contain
s 10
colors,
Constructi 9-inch ₱137,779. ₱1,010,380.
by 12- 4,992 ₱230 ₱1,148,160
on paper 2 8
inch
sheets
 acid
free
and
recycla
ble

10’ x 15’
Cardboard inch or 1/8 25 200 5,000 600 4,400
for 1 dozen

800 meters
Leather or PVC 62
104.94 6,528.53 783.42 5,745.11
cloth leather
cloth

Portable
digital
Alarm travel
clock alarm 4,992 60 299,520 35,942.4 263,577.6
machine digital clock
(second
hand)
1set (4
color)
Ink 4 2,500 10,000 1,200 8,800
premium
ink, 100ml

Small, 12,48
Glue stick 40 499,200 59,904 439,296
10pcs/pack 0
 74

Elmer’s
multi-
Glue 1 270 270 32.4 237.6
purpose
glue 1010g

₱3,404. ₱1,968,678. ₱236,241. ₱1,732,437.

TOTAL
94 53 42 11
Table 27 indicates all the needed materials in Reminding Planner.

Production Cost

Table 28
Direct Materials

Unit of
Item Quantity Unit Cost Total
Measurement
Construction
40 mm ₱2.9 ₱116
paper
Cardboard 0.33 Inch 5.56 1.83
Leather cloth 0.73 Yard 0.12 0.09
Alarm clock
1 60 60
machine
TOTAL ₱177.92

Table 29
Direct Labor Cost

Hourly
Employee Daily
A.M. P.M.
Production Staff A ₱512 ₱64 ₱64
(P13,312/26)
Production Staff B 512 64 64
(P13,312/26)
Production Staff C 512 64 64
(P13,312/26)
Production Staff D 512 64 64
(P13,312/26)
TOTAL ₱2048 ₱256 ₱256
Hours consumed during 4hrs 4hrs
production
Total Direct Labor Cost ₱2048 ₱2048
Units Produced 16 units
Direct Labor Cost per ₱128
Unit
 75

Table 30
Overhead

Item Monthly Daily

Indirect Materials
Glue ₱1,123.20 ₱43.2
Glue stick 1.60 0.06
Ink 130.00 5.00
Depreciation-Production Machineries and Equipment
Printer 111.32 4.28
Book Binding Machine 388.33 14.94
Depreciation-Production Furniture and Fixtures
Table 176.00 6.77
Chairs 20.53 0.79
Storage Cabinet 22.59 0.87
Ceiling Fan 53.53 2.06
LED lights 31.09 1.20
Utilities
Electricity(30%OH) 3,080.4 118.48
Repair and Maintenance 1,000.00 38.46
Other Expenses
Employee contribution 30.00 1.15
SSS 2,983.50 114.75
PhilHealth 549.12 21.12
HDMF 300.00 11.54
Rent Expense(40%OH) 16,000.00 615.38
Total Overhead ₱26,001.21 ₱1,000.05
Unit Produced 416 16
Overhead Cost per unit ₱62.50 ₱62.50
 76

Schedule 3
Payroll

Gross Total Net

Employees SSS PhilHealth HDMF Tax
Monthly Deduction monthly
General
₱17,888 ₱581.30 ₱245.96 ₱100 ₱0 ₱927.26 ₱16,960.74
Manager
Production
13,312 490.50 183.04 100 0 773.54 12,538.46
Staff A
Production
13,312 490.50 183.04 100 0 773.54 12,538.46
Staff B
Production
13,312 490.50 183.04 100 0 773.54 12,538.46
Staff C
Production
13,312 490.50 183.04 100 0 773.54 12,538.46
Staff D
Sales Staff 13,312 490.50 183.04 100 0 773.54
12,538.46
A
Sales Staff 13,312 490.50 183.04 100 0 773.54
12,538.46
B
Sales Staff 13,312 490.50 183.04 100 0 773.54
12,538.46
C
Total ₱111,072 ₱4,014.8 ₱1,527.24 ₱800 ₱0 ₱6,342.04 ₱104,729.96

Schedule 4
Share of Employer

Employees EC SSS PhilHealth HDMF Total

General Manager ₱30 ₱1,178.70 ₱245.96 ₱100 ₱1,554.66
Production Staff A 10 994.50 183.04 P100 1,287.54
Production Staff B 10 994.50 183.04 P100 1,287.54
Production Staff C 10 994.50 183.04 P100 1,287.54
Production Staff D 10 994.50 183.04 P100 1,287.54
Sales Staff A 10 994.50 183.04 P100 1,287.54
Sales Staff B 10 994.50 183.04 P100 1,287.54
Sales Staff C 10 994.50 183.04 P100 1,287.54
Total ₱100 ₱8,140.20 ₱1,527.24 ₱800 ₱10,567.44
 77

Schedule 5
Other Expenses under Overhead

Employees EC SSS PhilHealth HDMF Total

General Manager ₱30 ₱1,178.70 ₱245.96 ₱100 ₱1,554.66
Sales Staff A ₱10 ₱994.50 ₱183.04 ₱100 ₱1,287.54
Sales Staff B 10 994.50 183.04 100 1,287.54
Sales Staff C 10 994.50 183.04 100 1,287.54
Total ₱30 ₱2,983.50 ₱549.12 ₱300 ₱3,862.62

Table 31
Total Product Cost per Unit

Total Direct Total Direct Total

Total Product
Items Material Cost Labor Cost per Overhead
Cost per Unit
per Unit Unit Cost per Unit
Reminding Planner ₱177.92 ₱128.00 ₱62.50 ₱368.42
 78

CHAPTER 5

FINANCIAL ASPECT

This aspect includes the financial assumptions that will be applied in doing the

accounting records, the projected cost and the projected financial statements in doing

the business.

General Financial Assumptions

1. The Financial Statements are prepared and presented in accordance with FRSC

Philippine Accounting Standards (PAS) 1.

2. The business is VAT registered.

3. The type of the business structure is partnership.

4. All projections are made for three years (2019-2021)

5. Inventories are carried at cost and first-in-first-out method is used.

6. All purchases are to be made on cash.

7. Purchases of raw materials will be computed based on the normal capacity per year.

8. Lease of the commercial space is P40,000 monthly. A two-month security deposit

and one-month advance are required.

9. Prepaid rent is for the first month only.

10. 90% of the purchased supplies are assumed to be used. Increase in purchase of

store supplies will be based on the capacity per year.

11. Depreciation will be computed using straight-line method. The useful life of the

equipment and furniture and fixtures are based on the conservative assumption of

the management.
 79

12. The capital that will be used by the business will be coming from the investment of

the partners.

13. Additional investment should be made when the capital balance of a partner falls

under P100,000.

14. The sales will be computed based on the estimated percentage of annual capacity

availed.

15. Variable expenses will be based on the normal capacity.

16. Monthly salaries will increase by inflation rate every year.

17. All organizational costs are treated as an outright expense.

18. Taxes and licenses will be computed according to the existing laws. VAT will be paid

monthly while income tax will be paid quarterly.

19. SSS and Employee’s Compensation Contribution PAG-IBIG, PhilHealth and

withholding tax will be based on the rules provided by the concerned institution.

20. The ceiling of withdrawals is 50% of the share in net income, but only on the net

income exceeding their initial investment.

 80

Project Cost

R Planner
Project Cost

Current Asset Notes

Office Supplies (table 26) ₱1,592.25
Raw Materials 122,622.46

Non-current Asset
Rent Deposit 80,000.00
Property, Plant and Equipment
Store Equipment (table 23) ₱26,028.24
Production Equipment (table 19) 34,067.12
Office Equipment (table 21) 133,674.80
Store Furniture and Fixtures (table 24) 11,650.00
Production Furniture and Fixtures (table 20) 20,710.00
Office Furniture and Fixtures (table 22) 41,249.00
Leasehold Improvement 30,000.00
Production Tools (table 25) 1,548.00 298,927.16
Total Asset ₱503,141.87

Current Liabilities
Other Current Payables 2,500.00
Total Liabilities ₱2,500.00

Pre-operating Cost
Rent Expense ₱120,000.00
Taxes and Licenses
SEC Regulatory Fee ₱5,050.00
DTI Barangay 200
DTI City 500
Credit Investigation 50
Documentary Stamp 15
Certification Fee 500
Barangay Clearance 800
Notarized Fixed Asset 300
Community Tax Certificate 500
Mayor's Permit
 81

Sanitary Permit 900

License Fee 1,300.00
Garbage Collection Fee 2,500.00
BIR 615
Print Receipts and Invoices
Accredited by BIR 4,000.00 17,230.00
Advertising Expense 22,450.00
Utilities Expense 7,500.00
Recruitment and Training 5,500.00
Repairs and Maintenance 2,000.00
Total Pre-operating Cost ₱174,680.00

Total Project Cost ₱675,321.87

Investment 800,000.00
Beginning Cash ₱124,678.13

Statement of Financial Position

R Planner
Statement of Financial Position
As of the Year 0

Assets Notes
Current Assets
Cash and Cash Equivalents ₱124,678.13
Raw Materials 122,622.46
Office Supplies (table 26) 1,401.18
Refundable VAT 32,462.33
Non-current Assets
Property, Plant and Equipment
Store Equipment (table 23) 22,904.85
Production Equipment (table 19) 29,979.07
Office Equipment (table 21) 117,633.82
Store Furniture and Fixtures (table 24) 10,252.00
Production Furniture and Fixtures (table 20) 18,224.80
Office Furniture and Fixtures (table 22) 36,299.12
Leasehold Improvement 30,000.00
Production Tools (table 25) 1,362.24 266,655.90
 82

Rent Deposit 80,000.00

Total Assets 627,820.00

Liabilities and Equity

Liabilities
Other Current Payables
Utilities Payable 2,500.00

Equity
Aguilar, Capital 156,330.00
Lim, Capital 156,330.00
Logan, Capital 156,330.00
Villarubia, Capital 156,330.00
Total Liabilities and Equity 627,820.00

Statement of Cash Flow

R Planner
Statement of Cash Flow
Year 0

Cash from Operating activities Notes PRE- OPERATING

Payment for Rent -200,000.00
Payment for Supplies -1,592.25
Payment for Repairs and Maintenance -2,000.00
Payment for Utilities -5,000.00
Payment for Taxes and Licenses -17,230.00
Recruitment and Training -5,500.00
Payment for Raw Materials -122,622.46
Payment for Advertising -22,450.00
Net Cash Flow used from Operating Activities -376,394.71

Cash flow from Investing Activities

Purchase of Property, Plant and Equipment -298,927.16
Net Cash Flow used from Investing Activities -298,927.16

Cash flow from Financing Activities

Initial Investment 800,000.00
Net Cash Flow provided from Financing Activities 800,000.00
 83

Net Cash Flow 124,678.13

Beginning Cash -
Ending Cash balance ₱124,678.13

Comparative Statement of Financial Position

R Planner
STATEMENT OF FINANCIAL POSITION PROJECTION
For the Year ended Year 0, 2019 – 2021

As of End of: Notes Year 0 2019 2020 2021

ASSETS
Current Assets
Cash and cash equivalents ₱124,678.13 ₱468,481.34 ₱626,027.97 ₱781,597.39
Raw Materials, Net 1 122,622.46 - - -
Supplies, Net 2 1,401.18 1,607.71 1,683.92 1,763.74
Refundable VAT 3 32,462.33
Total current assets 281,164.10 470,089.06 627,711.89 783,361.13

Non Current Assets

Property, Plant and Equipment, Net 4 266,655.90 213,591.18 160,535.94 107,490.63
Rent Deposit 80,000.00 80,000.00 80,000.00 80,000.00
Total Non Current Assets 346,655.90 293,591.18 240,535.94 187,490.63

TOTAL ASSETS ₱627,820.00 ₱763,680.24 ₱868,247.83 ₱970,851.76

LIABILITIES
Current Liabilities
Other Current Payables 5 2,500.00 91,141.06 101,425.59 112,505.42
Total Current Liabilities 2,500.00 91,141.06 101,425.59 112,505.42

TOTAL LIABILITIES 2,500.00 91,141.06 101,425.59 112,505.42

EQUITY
Proprietor's Equity 6 625,320.00 672,539.18 766,822.24 858,346.34
TOTAL EQUITY 625,320.00 672,539.18 766,822.24 858,346.34

TOTAL LIABILITIES AND EQUITY ₱627,820.00 ₱763,680.23 ₱868,247.83 ₱970,851.76

 84

Comparative Statement of Cash Flows

R Planner
Statement of Cash Flows
For the Years ending in Year 0, December 31, 2019- 2021

Notes Year 0 2019 2020 2021

Cash from Operating activities
Collections from customers 7 - ₱2,232,646.00 ₱2,484,262.07 ₱2,755,328.38
Payment for Raw Materials -122,622.46 -1,348,847.02 -1,637,302.03 -1,815,953.64
Payment for rent -200,000.00 -288,000.00 -288,000.00 -288,000.00
Payment for Supplies -1,592.25 -1,667.72 -1,746.77 -1,829.57
Payment for Repairs and Maintenance -2,000.00 -12,000.00 -12,000.00 -12,000.00
Payment for Utilities -5,000.00 -5,544.72 -5,807.54 -6,082.82
Payment for recruitment and training -5,500.00 - - -
Payment for Taxes and Licenses -17,230.00 - -6,000.00 -6,000.00
Payment for Advertising -22,450.00 -22,450.00 -23,514.13 -24,628.70
Payment for Salaries - -214,656.00 -224,830.68 -235,487.64
Payment for Professional Fee - -60,000.00 -60,000.00 -60,000.00
13th month pay - -17,888.00 -18,735.89 -19,623.97
SSS Remitted - -14,144.40 -14,144.40 -14,144.40
EC Remitted - -360.00 -360.00 -360.00
HDMF Remitted - -1,200.00 -1,200.00 -1,200.00
Philhealth Remitted - -2,951.52 -2,951.52 -2,951.52
Income Tax Remitted - -20,236.79 -40,407.02 -64,230.19
Decrease in Refundable VAT 32,462.33
Increase in Payables - 88,641.06 10,284.54 11,079.83
Net Cash Flow from Operating Activities -376,394.71 ₱343,803.21 ₱157,546.63 ₱213,915.76

Cash flow from Investing Activities

Purchase of Property, Plant and Equipment -298,927.16 - - -
Net Cash Flow from Investing Activities -298,927.16

Cash flow from Financing Activities

Initial investment 800,000.00 - - -
Aguilar, Withdrawal - - 0.00 -14,586.59
Lim, Withdrawal - - 0.00 -14,586.59
Logan, Withdrawal - - 0.00 -14,586.59
Villarubia, Withdrawal - - 0.00 -14,586.59
Net Cash Flow from Financing Activities 800,000.00 0.00 0.00 -58,346.34
 85

Net Cash Flow 124,678.13 343,803.21 157,546.63 155,569.42

Beginning Cash - 124,678.13 468,481.34 626,027.97
Ending Cash balance ₱124,678.13 ₱468,481.34 ₱626,027.97 ₱781,597.39

Comparative Statement of Comprehensive Income

R Planner
Statement of Comparative Income
For The Three Years Ended, 2019, 2020, and 2021

Notes 2019 2020 2021

Net Sales 7 ₱2,232,646.00 ₱2,484,262.07 ₱2,755,328.38
Less: Cost of Goods Sold 1,471,469.48 1,637,302.03 1,815,953.64
Gross Profit 761,176.52 846,960.05 939,374.75
Less: Selling and Administrative Expense 8 693,720.55 712,269.96 725,274.10
Income Before Tax 67,455.97 134,690.08 214,100.65
Income Tax Expense (30%) 20,236.79 40,407.02 64,230.19
Net Income After Tax ₱47,219.18 ₱94,283.06 ₱149,870.45

Comparative Projected Statement of Changes in Equity

R Planner
Projected Statement of Changes in Partners' Equity
For the Year Ended 0

Partners Aguilar Lim Logan Villarubia Total

Capital, Beginning ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱800,000.00
Add/Less: Share in Net Income/Loss -43,670.00 -43,670.00 -43,670.00 -43,670.00 -174,680.00
Total ₱156,330.00 ₱156,330.00 ₱156,330.00 ₱156,330.00 ₱625,320.00
Less: Withdrawal - ₱- - ₱- ₱-
Capital, Ending ₱156,330.00 ₱156,330.00 ₱156,330.00 ₱156,330.00 ₱625,320.00
 86

R Planner
Projected Statement of Changes in Partners' Equity
For the Year Ended December 31, 2019

Partners Aguilar Lim Logan Villarubia Total

Capital, Beginning ₱156,330.00 ₱156,330.00 ₱156,330.00 ₱156,330.00 ₱625,320.00
Add: Share in Net Income/Loss 11,804.79 11,804.79 11,804.79 11,804.79 47,219.18
Total ₱168,134.79 ₱168,134.79 ₱168,134.79 ₱168,134.79 ₱672,539.18
Less: Withdrawal
Capital, Ending ₱168,134.79 ₱168,134.79 ₱168,134.79 ₱168,134.79 ₱672,539.18

R Planner
Projected Statement of Changes in Partners' Equity
For the year ended December 31, 2020

Partners Aguilar Lim Logan Villarubia Total

Capital, Beginning ₱168,134.79 ₱168,134.79 ₱168,134.79 ₱168,134.79 ₱672,539.18
Add: Share in Net Income/Loss 23,570.76 23,570.76 23,570.76 23,570.76 94,283.06
Total ₱191,705.56 ₱191,705.56 ₱191,705.56 ₱191,705.56 ₱766,822.24
Less: Withdrawal 0.00 0.00 0.00 0.00
Capital, Ending ₱191,705.56 ₱191,705.56 ₱191,705.56 ₱191,705.56 ₱766,822.24

R Planner
Projected Statement of Changes in Partners' Equity
For the year ended December 31, 2021

Partners Aguilar Lim Logan Villarubia Total

Capital, Beginning ₱191,705.56 ₱191,705.56 ₱191,705.56 ₱191,705.56 ₱766,822.24
Add: Share in Net Income/Loss 37,467.61 37,467.61 37,467.61 37,467.61 149,870.45
Total ₱229,173.17 ₱229,173.17 ₱229,173.17 ₱229,173.17 ₱916,692.69
Less: Withdrawal (50%) -14,586.59 -14,586.59 -14,586.59 -14,586.59 -58,346.34
Capital, Ending ₱214,586.59 ₱214,586.59 ₱214,586.59 ₱214,586.59 ₱858,346.34
 87

Notes to Financial Statements

NOTES TO FINANCIAL STATEMENTS YEAR 0 AND YEARS 2019 - 2021

Notes 1 - Raw Materials Year 0 2019 2020 2021
Raw Materials, Beg ₱- 122,622.46 ₱- ₱-
Add: Purchases 122,622.46 1,348,847.02 1,637,302.03 1,815,953.64
Less: Raw Materials used - 1,471,469.48 1,637,302.03 1,815,953.64
Raw Materials, End 122,622.46 ₱- ₱- ₱-

Note 2 - Supplies Year 0 2019 2020 2021

Supplies, Beg 0 ₱1,401.18 ₱1,607.71 ₱1,683.92
Add: Purchases, Net 1,401.18 1,467.60 1,537.16 1,610.02
Less: Supplies used 0 1,261.06 1,460.95 1,530.20
Supplies, End ₱1,401.18 ₱1,607.71 ₱1,683.92 ₱1,763.74

Note 3 - VAT Payable (Refundable VAT) Year 0 2019 2020 2021

Output VAT ₱267,917.52 ₱298,111.45 ₱330,639.41
Less: Input VAT 32,462.33 176,776.46 196,685.86 218,133.98
VAT Payable (Refundable VAT) (₱32,462.33) ₱91,141.06 ₱101,425.59 ₱112,505.42

Note 4 - Property, Plant and Equipment Year 0 2019 2020 2021

Production Equipment, net ₱29,979.07 ₱23,983.26 ₱17,987.45 ₱11,991.64
Production Furniture and Fixtures, net 18,224.80 14,579.84 10,944.36 7,318.81
Office Equipment, net 117,633.82 94,107.06 70,580.30 47,053.54
Office Furniture and Fixtures, net 36,299.12 29,039.30 21,779.48 14,519.66
Store Equipment, net 22,904.85 18,317.88 13,730.91 9,143.94
Store Furniture and Fixtures, net 10,252.00 8,201.60 6,151.20 4,100.80
Leasehold Improvement, net 30,000.00 24,000.00 18,000.00 12,000.00
Production Tools, net 1,362.24 1,362.24 1,362.24 1,362.24
Property, Plant and Equipment, net ₱266,655.90 ₱213,591.18 ₱160,535.94 ₱107,490.63

Note 5 - Other Current Payables Year 0 2019 2020 2021

Other Current Payables, Beg ₱- ₱2,500.00 ₱91,141.06 ₱101,425.59
Salaries Payable - 0.00 0.00 0.00
Utilities Payable 2,500.00 0.00 0.00 0.00
VAT Payable - 91,141.06 101,425.59 112,505.42
SSS Payable - 0.00 0.00 0.00
Employer's Contribution Payable - 0.00 0.00 0.00
Home Development Mutual Fund Payable - 0.00 0.00 0.00
PhilHealth Payable - 0.00 0.00 0.00
Less: Payments 2,500.00 91,141.06 101,425.59
Other Current Liabilities, Ending ₱2,500.00 ₱91,141.06 ₱101,425.59 ₱112,505.42
 88

Note 6 - Capital Year 0 2019 2020 2021

Capital, Beginning ₱800,000.00 ₱625,320.00 ₱672,539.18 ₱766,822.24
Add: Share in Net Income - 47,219.18 94,283.06 149,870.45
Less: Share in Net Loss 174,680.00
Total 625,320.00 672,539.18 766,822.24 916,692.69
Less: Withdrawal 0.00 58,346.34
Capital, Ending ₱625,320.00 ₱672,539.18 ₱766,822.24 ₱858,346.34

Note 7 - Sales Year 0 2019 2020 2021

Price per unit ₱- ₱ 559.00 ₱ 585.50 ₱ 613.25
Number of Units - 3,994.00 4,243.00 4,493.00
Net Sales ₱- ₱ 2,232,646.00 ₱ 2,484,262.07 ₱ 2,755,328.38

Note 8 - Selling and Administrative Expense Year 0 2019 2020 2021

Professional Fee 60,000.00 60,000.00 60,000.00
Office Supplies Expense 1,261.06 1,460.95 1,530.20
Depreciation Expense 53,264.85 53,264.85 53,264.85
Rent Expense 288,000.00 288,000.00 288,000.00
Licenses - 6,000.00 6,000.00
Repair and Maintenance Expense 12,000.00 12,000.00 12,000.00
Utilities Expense 5,544.72 5,807.54 6,082.82
Marketing and Advertising Expense 22,450.00 23,514.13 24,628.70
Salaries Expense 214,656.00 224,830.68 235,487.64
13th Month Pay 17,888.00 18,735.89 19,623.97
SSS Expense 14,144.40 14,144.40 14,144.40
EC Expense 360.00 360.00 360.00
HDMF Expense 1,200.00 1,200.00 1,200.00
Philhealth Expense 2,951.52 2,951.52 2,951.52
Total Selling and Administrative Expense ₱693,720.55 ₱712,269.96 ₱725,274.10
 89

Financial Highlights

Liquidity Ratios Year 1 Year 2 Year 3

Current Ratio 5.16 6.19 6.96
Quick Ratio 5.16 6.19 6.96

Solvency Ratios Year 1 Year 2 Year 3

Debt Ratio 11.93% 11.68% 11.59%
Debt Equity Ratio 13.55% 13.23% 13.11%

Profitability (Return) Ratios Year 1 Year 2 Year 3

Return on sales or gross income 2.11% 3.80% 5.44%
Return on equity 7.02% 12.30% 17.46%
Return on assets 6.18% 10.86% 15.44%
Asset turnover 3.21 3.04 3.00

Payback Period
No. of Years to Recover Initial Investment (in no. of years) 3.12
 90

CHAPTER 6

SOCIO-ECONOMIC ASPECT

The R Planner is a business that caters a planner with a unique feature of alarm

clock attached on it. The industry is in the area of bookstore and school supplies; in line

with the journal notebooks and planners. As a starting business, we decided to start with

a store aiming to introduce a new planner for everyone. In this chapter includes the

amount of labor to be employed, the amount of taxes to be paid to the government and

the benefits that the people will acquire from this project.

Production

The production of our company will contribute to the society through opening doors

for employment with compensation. Our company will give different benefits to its

employees for a good atmosphere within the working environment. Human rights will also

be properly observed within the enterprise for the harmonious relationship between

employees. Appropriate segregation and disposal of waste products will also be a

contribution of the organization to the social benefits. If a clean surrounding will be

maintained and conserved, it will lead to a good condition of the working environment

thus affecting the performance of the employees and putting it in a good condition for

productive outcomes.
 91

Employment

One of the biggest problems of the Philippines is underemployment. Our business

will provide employment and it would help to decrease the number of unemployed

Filipinos. Our company will generate 8 employees and workers and all of them will have

their salaries and other benefits like SSS, Philhealth and Pagibig, and it would help them

in improving their quality of life. Each employees will be given the right compensation and

all the benefits that they will be needed. Also, the security and safety of each worker will

be properly implemented. Our company will be just and fair in recruiting employees for

them to have equal opportunity and to avoid racial discrimination. In return they will

provide quality of services to produce the product that the company offers and their

expertise and qualities will help in improving the management and also the company

itself, however our company would provide job security and will implement rules to ensure

harmonious relationship among those employees. The compensation for the employees

will be followed according to minimum wage law.

Taxes

If our company will earn profit, the government will generate more tax from it

because our company will pay proper amount of taxes. Taxes coming from our company

will contribute to the development of the community and also it can help in funding our

government agencies. Taxes that we are paying will serve as a support to the government

expenditures that will then serve as a tool for general, social and economic welfare.
 92

Environment

Our company will produce a product that is not harmful to the environment and its people.

Proper disposal of product wastes is strictly implemented and ensured to avoid causing

harm to the environment and its surroundings. Our company will take account in our

product’ greenhouse gas contribution by measuring the amount of carbon dioxide

associated with the machines that we are going to use in every product lifecycle. Our

company will recycle those scrap materials to lessen the waste and to maximize its

materials. By this scrap materials we can produce another product like small planners.

Since we are using papers which came from trees, we will conduct a tree planting project

to replace those trees. And also, we will participate in tree planting activities of other

companies.

Waste Disposal

In order for the enterprise to maintain its cleanliness, the enterprise is going to

implement the usual way of waste disposal method in such case that it will be placed in

a trash bin where the local authority which has the responsibilities of both waste collection

and waste disposal authorities will soon collect the wastes. Nonetheless, the enterprise

will also be segregating the wastes as biodegradable and non-biodegradable wastes to

help not only the other companies or organizations that recycle such product made in

plastics and to turn it into useful products again but also to save our Earth from its

continuous destruction because of pollution. Moreover, the biodegradable wastes will be

buried on the soil so that the soil will become fertile and can be planted with plants

resulting to healthier and more nourished plants and trees.

 85

APPENDICES

APPENDIX 1

Demand Questionnaire

Dear Respondents,

We, Accountancy students of La Consolacion College Manila, are currently conducting

a feasibility study on our product, Alarming Planner, as a partial requirement of our
course Management Advisory Services.
We respectfully request for your cooperation in answering our questionnaires with
honesty and to the best of your knowledge. Rest assured that this study is intended for
academic purposes only and confidentiality will be highly assured. Thank you for your
cooperation.

Directions: Please mark a check on the box that corresponds to your answer.
I. Respondent’s Profile
Name (Optional):___________________________________________________

Gender: [ ] Male [ ] Female

Age: [ ] 15-20 years old [ ] 26-30 years old and above

[ ] 21-25 years old

If Students,
Monthly Allowance: [ ] Below ₱5,000 [ ] ₱6,001 - ₱7,000
[ ] ₱5,000 - ₱6,000 [ ] ₱7,001 - ₱7,000

If Employed,
Monthly Salary: [ ] Below ₱15,000 [ ] ₱25,001 and above
[ ] ₱15,001 - ₱25,000
 85

II. Survey Questions

1. Do you use planner?

[ ] Yes [ ] No
2. How many planner did you buy in a year?
[]1 []3 [ ] Others:___
[]2 []4
3. What cover design do you prefer?
[ ] Plain [ ] Floral
[ ] Doodle [ ] Leather
4. Preferred planner size:
[ ] Mini (2.64x4.13in) [ ] Personal (3.74x6.73in)
[ ] Pocket (3.19x4.72in) [ ] A5 (5.82x8.27in)
5. Where do you usually buy planner?
[ ] National Bookstore [ ] Divisoria/168/999 [ ] Others:______
[ ] Starbucks [ ] Any craft stores
6. Would you prefer to buy in a planner store?
[ ] Yes [ ] No
7. What qualities of the planner appeal to you the most?
[ ] Features [ ] Price
[ ] Design [ ] Brand
8. Are you willing to buy planner with alarm?
[ ] Yes [ ] No
9. Preferred price for the Alarming Planner
[ ] ₱500-₱700 [ ] ₱701-₱900 [ ] ₱901 and above
 85

APPENDIX 2

Survey Questionnaire

Dear Respondents,

We, Accountancy students of La Consolacion College Manila, are currently conducting

a feasibility study on our product, Alarming Planner, as a partial requirement of our
course Management Advisory Services.
We respectfully request for your cooperation in answering our questionnaires with
honesty and to the best of your knowledge. Rest assured that this study is intended for
academic purposes only and confidentiality will be highly assured. Thank you for your
cooperation.

Directions: Kindly put your response on the space provided.

1. How long have you been in the business? _________________________

2. When you started, how many competitors do you have? ______________

3. In succeeding years, how many competitors are added per year? _______

4. Do you have regular customers? ________________________________

5. Most customers do you have in a month? _________________________

6. Least customers do you have in a month? ________________________

7. Is the demand for planners increasing? __________________________

 85

APPENDIX 3.1

Average Customers per Year

Least No. Most No. Ave. No. of

of Buyers of Buyers Buyers Annual Total
2016 Comp
per Month per Month per Month Customer Supply
etitors
Expressions 50 80 65 780 3 2,340
National
90 115 103 1,236 3 3,708
Bookstore
Starbucks 75 110 93 1,116 3 3,348
Total 1,044 3 3,132

Least No. Most No. Ave. No. of

of Buyers of Buyers Buyers Annual Total
2017 Comp
per Month per Month per Month Customer Supply
etitors
Expressions 50 80 65 780 4 3,120
National
90 115 103 1,236 4 4944
Bookstore
Starbucks 75 110 93 1,116 4 4,464
Trendzonia 20 50 35 420 4 1,680
Total 888 4 3,552

Least No. Most No. Ave. No. of

of Buyers of Buyers Buyers Annual Total
2018 Comp
per Month per Month per Month Customer Supply
etitors
Expressions 50 80 65 780 4 3,120
National
90 115 103 1,236 4 4944
Bookstore
Starbucks 75 110 93 1,116 4 4,464
Trendzonia 20 50 35 420 4 1,680
 86

Total 888 4 3,552

 85

APPENDIX3.3

Computation of Projected Supply

Yc = a + bX

Where Yc = projected supply

a = aggregate mean
b = rate of variability of historical data
x = years from the median year

(𝚺𝐗𝟒)(𝚺𝐘) – (𝚺𝐗𝟐)(𝚺𝐗𝟐𝐘)
a=
𝐍(𝚺𝐗𝟒) – (𝚺𝐗𝟐)𝟐

= 3552

𝚺𝐗𝐘
b=
𝚺𝐗𝟐

= 210
 85

APPENDIX 4.1

Withholding Tax Table

 85

APPENDIX 4.2

SSS Table

APPENDIX 4.3

HDMF Table
 85

APPENDIX 4.4

Philhealth Contribution Table

 85

APPENDIX 4.5

Computation of Inflation Rate

3.4+3.8+4.3+4.5+4.6+5.2+5.7+6.4
Average Inflation for 2017 =
8

Average Inflation for 2017 = 4.74

 85

APPENDIX 5

Articles of Partnership
General Partnership

ARTICLES OF PARTNERSHIP
OF
R Planner

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned partners, all of legal age, residents and citizens of the

Philippines, have on this day voluntarily associated ourselves together for the purpose of forming

a general partnership under the following terms and conditions and subject to existing and

applicable laws of the Republic of the Philippines:

AND WE HEREBY CERTIFY:

ARTICLE I. Partnership Name: That the name of this partnership shall be

R Planner and shall transact business under the said company name.

ARTICLE II. Business Purpose: That the purpose/s for which this partnership is formed

is/are: to provide maximization of partner’s investments and to provide convenient place to relax

as well as promoting happier and sweeter life to customers through its products.

ARTICLE III. Principal Place of Business: That the principal place of business of this

partnership shall be located at: Yunitrade Marketing Center Corporation at 594 J.

Nepomuceno Street Quiapo, Manila, Quiapo, Manila, 1001 Metro Manila

ARTICLE IV. Term of Existence: That this partnership shall have a term of 20 years

from and after the original recording of its Articles of Partnership by the Securities and Exchange

Commission.
 85

ARTICLE V. Capital Contributions: That the capital of this Partnership shall be the

amount of eight hundred thousand pesos (P 800,000.00), contributed in cash by the partners, as

follows:

Name Amount Contributed

Aguilar, Raymond T. P 200,000.00
Lim Mariel O. P 200,000.00
Villarubia, Ma. Paula V. P 200,000.00
Logan, Rebecca May V. P 200,000.00

That no transfer of interest which will reduce the ownership of Filipino citizens to less than

the required percentage of capital as provided by existing laws shall be allowed or permitted to

be recorded in the proper books of the partnership.

ARTICLE VI. Sharing Ratios: That the profits and losses of this partnership shall be

divided and distributed proportionately on the ratio of the capital contribution of each partner.

ARTICLE VII. Management: That this partnership shall be under all partners, as

General Manager, who shall be in charge of the management of the affairs of the company. He

shall have the power to use the partnership name and in otherwise performing such acts as are

necessary and expedient in the management of the firm and to carry out its lawful purposes.

ARTICLE VIII. Undertaking to Change Name: That the partners undertake to change

the name of this partnership, as herein provided or as amended thereafter, immediately upon

receipt of notice or directive from the Securities and Exchange Commission that another

corporation, partnership or person has acquired a prior right to the use of that name or that the

name has been declared as misleading, deceptive, confusingly similar to a registered name, or

contrary to public morals, good customs or public policy.

 85

IN WITNESS WHEREOF, we have hereunto affixed our signatures this 22nd day of

September 2018, at Nepomuceno Street Quiapo, Manila, Quiapo, Manila, 1001 Metro

Manila.

______________________ _______________________
Aguilar, Raymond T. Lim, Mariel O.
TIN TIN
______________________ _______________________
Logan, Rebecca May V. Villarubia, Ma. Paula V.
TIN TIN
 85

APPENDIX 6
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APPENDIX 7
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APPENDIX 8
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APPENDIX 9
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APPENDIX 10
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CURRICULUM VITAE

AGUILAR, RAYMOND T.
541-A Sunflower St., Greenland Subd.,
Cainta, Rizal
Mobile No.: +63 906 756 8436
Email: raymondaguilar12@yahoo.com

EDUCATIONAL BACKGROUND:
La Consolacion College Manila
Bachelor of Science in Accountancy
8 Mendiola St., Manila Philippines 1005
June 2017 – Present

Far Eastern University Manila

Bachelor of Science in Business Administration - Major in Financial Management
Nicanor Reyes St., Sampaloc, Manila
Year Graduated: 2017

LIM, MARIEL O.
68C Luskot St., Brgy. Doña Aurora,
Quezon City
Mobile No.: +63 956 829 0092
Email: limmariel15@yahoo.com

EDUCATIONAL BACKGROUND:
La Consolacion College Manila
Bachelor of Science in Accountancy
8 Mendiola St., Manila Philippines 1005
June 2017 – Present

Far Eastern University Manila

Bachelor of Science in Business Administration - Major in Financial Management
Nicanor Reyes St., Sampaloc, Manila
Year Graduated: 2017
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LOGAN, REBECCA MAY V.

19 Doña Binday Subd., Brgy., Malinao
Pasig City
Mobile No.: +63 935 872 5908
Email:

rebeccamvlogan@gmail.com

EDUCATIONAL BACKGROUND:
La Consolacion College Manila
Bachelor of Science in Accountancy
8 Mendiola St., Manila Philippines 1005
November 2017 – Present

Jose Rizal University

Bachelor of Science in Business Administration - Major in Accounting
80 Shaw Blvd., Mandaluyong, 1552 Metro Manila
Year Graduated: 2017

VILLARUBIA, MA. PAULA V.

Blk. 24 Lt. 14 Kalayaan Village Merville,
Pasay CIty
Mobile No.: +63 995 009 7721
Email: paulavidal81097@gmail.com

EDUCATIONAL BACKGROUND:
La Consolacion College Manila
Bachelor of Science in Accountancy
8 Mendiola St., Manila Philippines 1005
November 2017 – Present

Jose Rizal University

Bachelor of Science in Business Administration - Major in Accounting
80 Shaw Blvd., Mandaluyong, 1552 Metro Manila
Year Graduated: 2017