Feasibility Study On Establishing An All-Men Dormitory In Iligan City

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A Feasibility Study On
THE GENTLEMEN’S HUB

(All-Men Dormitory)
Presented to:
ANAS A. ALOYODAN, CPA, MICB
Faculty of the Department of Accountancy
Masters Technological Institute of Mindanao, Iligan City
In Partial Fulfillment
Of the Course Requirement in
Accounting 422 (Management Consultancy)
Presented by:
JAMIL, ESMIL JR.
LUCMAN, ABDUL RAOUF D.
OMAR, NAIF U.
ABDULLAH ASLIAH
ABDULLAH, NOR AINIE M.
BUGTAY, LOURIJEN C.
CADABOK, SITTIE ASIAH
GANI, STTIE NORLLAILAH
HADJI NOOR, NASREFA M
LONGAKIT, MARY JOY C.
.MACARAMPAT, SITTIE AIRAH B.
MACARAMPAT, SITTIE AYNAH B.
TANAEL, EVA L
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MARCH 2018
Table of Contents
CHAPTER 1: EXECUTIVE SUMMARY
A. Introduction………………………………………………..
B. Statement of the Problem……………………………….
C. Objective of the Study……………………………………
D. Project Title/Name – The Gentlemen’s Hub………...
E. Project Location…………………………………………...
F. Brief Description of the Project…………………………
F.2. Nature or Kind of Business……………………….
G. Vision, Mission, Objectives……………………………..
CHAPTER 2: MARKETING ASPECTS
A. Market Description……………………………………….
B. Demand……………………………………………………..
C. Supply……………………………………………………….
D. Competitive Description…………………………………
E. Marketing Strategy……………………………………….
F. Projected Revenue………………………………………...
CHAPTER 3: TECHNICAL ASPECTS
A. Product Description……………………………………...
B. Building Facilities…………………………………………
C. Utilities……………………………………………………...
D. Services……………………………………………………..
E. Labour Requirement……………………………………..
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F. Project Cost Estimate……………………………………….
CHAPTER 4: ORGANIZATIONAL ASPECTS
A. Pre-Operating Activities……………………………………
B. Management During the Operating Period……………
C. Type of the Business Organization…………………….
D. Organizational Chart……………………………………….
E. Assets Needed……………………………………………….
CHAPTER 5: FINANCIAL ASPECTS
A. Total Project Cost…………………………………………..

B. Fund Sourcing………………………………………………
C. Basic Assumption………………………………………….
D. Projected Financial Statements………………………….
E. Financial Statements Analysis…………………………..
CHAPTER 6: SOCO-ECONOMIC ASPECT
A. Socio-Economic……………………………………………..
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CHAPTER 1
EXECUTIVE SUMMARY
Introduction
Nowadays the population of the Philippines has increased

drastically, leading us to be one of the countries who are overpopulated.
Due to drastic changes in the growth of our population, consequentially
it will also lead to increasing number of students who are seeking for
education from elementary, high school and colleges. Having that aside,
a lot of students are having the interest of living in dormitories for the
purpose of concentrating on their studies, knowing that their basic needs
of shelter is fulfilled.
Living in a dormitory creates an experience and moments in an

adult life that helps student learn the responsibility, the benefits of
independence and the joy of camaraderie. And mostly the reason is you
don’t have to worry about transportation when you live on dormitories
near your school, and you’ll easily be able to get to class on time, in
short, for the sake of convenience and comfort.
In conducting this study let us have an overview of the preferences

of student’s idea of living in dormitories and the idea of whether it will
give them advantage in learning. Doing this study also, instills us the
importance of youth’s gaining education by all means. Once, our very
own hero, Dr. Jose P. Rizal, once told that the “Youth is the hope of the
Nation”. Indeed, and this might as well implies that the youth hold the
key of our future economic progress, if we account dormitories or
student accommodations and student housing as an investment. Here in
the Philippines there are numerous giant real estate companies like
SMDC and Ayala Real Estate that are now engaging in constructing
student housing projects especially in urban cities, like Cebu, Davao and
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Metropolitan, Manila that usually targeting those students who are

enrolled in prestigious educational institutions like De La Salle
University, Ateneo University, University of the East, Adamson
University, University of Santo Thomas and even state universities like
University of the Philippines. These companies cater the needs of
students of a shelter and comfortable living far away from homes.
Undeniably, a good performing rental property is a great investment to
any real estate portfolio, and one of the promising revenue generations
today and in the future is a Dormitory.
Dormitory or dorm is the popular term used by students to refer to

a residential house. The term comes from the word dormant, meaning to
sleep. Dormitories are places where students live, study, learn, and
sleep. It usually provides a necessary foundation for college and
university education. It helps and accommodates student who want to
live near the school premises that are living from different places and
also to those people who needs to live near their work places and other
necessities on the area.
To learn more about the dormitory, it’s nature and business, the
researchers are conducting a feasibility study of establishing an
exclusive dormitory in Iligan City to provide male students with effective
and efficient service and amenities that will satisfy their needs and
suffice their wants of a better place to live with while working hard on
their dreams in schools or universities for a great future.
Another importance of the need to conduct this study is to fill in

the gap between the demand and supply of dormitories or students
housing in the City of Iligan. Iligan City is a house of different schools,
colleges and universities. Mindanao State University –Iligan Institute of
Technology, MSU-IIT, is one of the academic institutions of excellence in
Iligan, and where every Iliganon is actually dreaming of finishing their
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degrees in MSU-IIT. Unfortunately, because of its stiff competition and

high standard or quotas for qualifications to be a grantee of scholarship
only few were chosen, and there were those not “Iliganons” or “who are
not from Iligan” students who passed the entrance examinations and
interviews who are now studying in MSU-IIT. These students are those
who need shelter near MSU IIT. Iligan City is a first class highly
urbanized city, yet, it needs more spaces for housing and to
accommodate individuals who aim for a better learning and education in
Iligan City.
Another concern of the researchers is the environment or the

society place a major role in the success of a student’s education.
Everyone a student communicates or talks with, or his surroundings
affect his/her learning.
The main objective of the researchers is to inform the reader and

users of this study that involving in a dormitory business is one of the
fulfilling engagement that help students and non-students perform their
projects/jobs and other commitments on time.
This study focus about an all-men dormitory project, as well as its

contribution to the society as a whole. It also shows the survey results
and the proposed lay out of the said business project. The study was
conducted on November 2017 and will be finished on March 2018.
Statement of the Problem
As there is an increase in population, development and growth in

social and economic perspective, more students would be capable to
pursue learning through academic education .Though there are some
dormitories and boarding house near the campus or university but still
they are in no way enough to accommodate the overflow of students who
dream of a better future by investing in their education.
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The researchers are to determine and analyze the feasibility of

establishing an all-men dormitory in ILigan City. The following
statements are raised to help the researchers come up with the proper
conclusion:
1. Is there a demand for the proposed project?

2. What are the marketing strategies to be implemented in the
business?
3. What are the technical requirements needed in the operation of
the proposed business?
4. How much capital is needed for the project? How will it be
finance?
5. What are the possible problems to be encountered in the
business?
Objective of the Study
The primary objective of this study is to determine the feasibility

and viability of a proposed plan to establish an all-men dormitory in
Andress Bonifacio Avenue corner Tibanga Hi way Iligan City. Part of this
study is to be able to shed light to the proponent of this project as to
well-grounded, risks, expenditures, benefits, marketability and
profitability of the services.
Other than the objective above, this study aims also to help the
students to have a better choice to choose form students housing or
residence by making this study feasible. This includes the basic
requirement of a particular place to live, along with the space to sleep, to
store and use personal effect to read, to work, and study.
Project Name/ Title
The proposed project will be named as “The Gentlemen’s Hub”. It

will be a dormitory designed exclusively for male students at
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undergraduates, graduate and postgraduate; reviewees and reviewers

and lecturers.
The Gentlemen’s Hub originate its name from the word

“gentlemen” and “hub”. Gentlemen is an English word means a man who
treats other people in a proper and polite manner and etiquette. Hub
means the central and most active part of place. The Gentlemen’s Hub is
expected to provide an excellent place fully equipped with complete
amenities and extra quality service like there’s no place like home.
Project Location
The Gentlemen’s Hub will be constructed on Brgy. Tibanga

Highway Iligan City. The Gentlemen’s Hub
Site Evaluation
The site is conveniently located within Iligan city, along

Tibanga Hi way, corner Andress Bonifacio Avenue. It is easily accessible
and a walking-distance away to Mindanao State University- Iligan
Institute of Technology, Mindanao Sanitarium Hospital and Adventist
Medical Center College.
Overall, the area can be considered as very ideal in an academic

environment where residents won’t be bothered by too loud noises from
the streets or from other establishments, at the same time giving
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residents easy access to transportation to commercial areas for when

they would require from studying.
Brief Description of the Project
Nature or Kind of Business
The Gentlemen’s Hub is a service type of business that is

distinctively and significantly accommodates male students.
Its source of revenue would be primarily generated from bed space

or unit rental. It also offered a “do-it-yourself” laundry and mini-gym for
additional source of income.
Vision
To be globally recognized as an excellent development hub of each

residential student that nurtures responsible and highly academic
students’’ performance in the school, well-disciplined, and God-fearing.
Mission
To provide excellent quality service designed to contribute to the

personal well-being and academic growth of its each residential student.
To create a well-designed housing equipped with complete

amenities and facilities that would cater the needs of its residents at the
most affordable cost and just price.
Objectives
The Gentlemen’s Hub shall:
1.) Provides complete facilities and amenities for everyone needs.

2.) Provides convenience, and comfort and security to its residents
within the dormitory community.
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3.) Nurtures the camaraderie, families and impart the essence of a

real home.
4.) Provides a healthy environment for learning and living.
5.) Provides quality education through monitoring group studies,
reviews, and status of students in school.
6.) Provides approachable dormitory parents for the student’s queries,
suggestions and counseling.
7.) Be able to provide responsible and well-discipline dormitory
residents.
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CHAPTER 2
MARKETING ASPECT
This feasibility study is conducted in order to find out if it is viable to

construct a dormitory and engage in a student-housing that is exclusive
for male occupants in Andress Bonifacio Avenue, Tibanga, Iligan City.
The proposed dormitory will be known as The Gentlemen’s Hub, an all-
men dormitory.
Furthermore, this chapter discusses the identification of its target

market, the analysis of its existing competitors, the determination of the
demand and supply for housing in the area, the demand-supply gap and
the dormitory’s entry marketing strategy to establish the services that
will make the dormitory different from other dormitories. It is also the
intention of the study to determine the composition of its SWOT
(Strength, Weaknesses, Opportunities and Threats) analysis, and the
projected revenues for five years
Market Description
The primary target market of the “The Gentlemen’s Hub” are male
students enrolled from Mindanao State University- Iligan Institute of
Technology (MSU-IIT, especially those who are not resident nor has a
residence in Ilign City. The propose dormitory is will be constructed in
Andress Bonifacio Avenue, Tibanga, Iligan City a walking distance away
from MSU- IIT. MSU- IIT is a state university located Tibanga, Iligan City.
It is where solid integration exists between different locals, cultures and
regions. It has geographically diverse students were some are living and
came from different provinces and cities few miles away from Iligan City
but are renting an apartment or bed space near MSU- IIT for temporary
shelter while studying.
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Other target markets are the male students enrolled from Adventist
Medical College, St. Michaels College, St. Peters College, and MTIM
The main goal of The Gentlemen’s Hub is to deliver a highly equipped

facilities and services to their chosen occupants and to provide a place
like home with a care of a good father while is best conducive for
learning.
Demand
This study will focus on male students as a component and basis of the
demand who are enrolled in eight (8) colleges or department of Mindanao
State University Iligan Institute of Technology (MSU- IIT) including
College of Nursing (CON), College of Education (CED), School Of
Computer Science SCS), CSM Graduate Program (CSMG), College of
Engineering (COE), College of Science and Mathematics (CSM), College of
Arts and Social Sciences (CASS), and the College of Business
Administration and Accountancy (CBAA) for five (5) consecutive school
years starting S.Y. 2012-2013 up to S.Y. 2016-2017.
The researchers have surveyed 400 students from MSU IIT consisting 50
students each of eight (8) college or departments. The 400 respondents
were randomly chosen as a representative of the entire MSU IIT male
students to answer questions related on the demand, as well as for the
supply of this study.
Demand Data and Computation
The following tables on the succeeding pages provide data that determine
the demand of this study based on the research conducted, the
distributed survey questionnaires and information taken from its Office
of the Registrar; such as, the total male students enrolled in a given
school years, the male graduates per given year and their classifications
according to their geographic residences, the estimated percentage of the
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total number of MSU IIT male students who are not from Iligan City, the
average total number of male students of MSU-IIT who are not from
Iligan City for a given school year and the projected number of male
students who are not from Iligan City for the next five (5) years.
Table 1 show the total number of MSU IIT male students enrolled per
semester and their total in five consecutive school years.
TABLE 1: TOTAL NUMBER OF MSU IIT MALE STUDENTS FOR A GIVEN

SCHOOL YEAR
School Year 1st Semester 2nd Semester Total Per
School Year
2012-2013 2538 2489 5027
2013-2014 2691 2545 5236
2014-2015 2760 2682 5442
2015-2016 2862 2767 5629
2016-2017 2959 2899 5858
As for the total, 3.90 is obtained as the average growth rate of the male
student enrollees in MSU IIT, computed as presented on the table below
with the following formula:
Table 2: Growth Rate Computation

Present Year – Previous Year
Previous Year x 100 %

Year 1:
5236-5027
5027 x 100 % = 4.16%

Year 2:
5442-5236
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5236 x 100 % = 3.93%

Year 3:
5629-5442
5442 x 100 % = 3.44%

Year 4:
5858-5629
5629 x 100 % = 4.07%

TOTAL 15.60%
Divided by: 4
Average Growth Rate 3.90%
Table 3 shows the number of Male Graduates from MSU-IIT per year
according to their geographic residence.
Table 3: MALE GRADUATES FROM MSU-IIT PER YEAR ACCORDING TO THEIR

GEOGRAPHIC RESIDENCE
Region 2012 2013 2014 2015 2016

9 38 33 36 51 69
10 55 52 58 64 83
11 17 18 27 31 28
12 53 66 72 73 64
13 19 18 41 52 53
ARMM 12 13 20 28 26
Other 18 18 24 34 36
Iligan City 172 219 266 290 319
TOTAL 384 437 544 623 678

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Table 4 shows the estimated percentage of the total number of MSU IIT
male students who are not from Iligan City using tha data from Table 3.
Table 4: ESTIMATED PERCENTAGE (%) OF THE TOTAL NUMBER OF MSU IIT

MALE STUDENTS WHO ARE NOT FROM ILIGAN CITY TAKEN FROM TABLE 2
(PER GRADUATES)
Graduates from: 2012 2013 2014 2015 2016
Outside of Iligan 212 218 278 333 359

City ( “X” )
Iligan City ( “Y” ) 172 219 266 290 319
TOTAL ( “Z” ) 384 437 544 623 678
(%)Percentage/Rat
io of “X” to “Z”
55.21% 49.89% 51.1% 53.45% 52.95%
Table 5 shows the average total number of MSU IIT Male Students who
are not from Iligan City for a given school year.
TABLE 5: AVERAGE TOTAL NUMBER OF MSU IIT MALE STUDENTS WHO ARE
NOT FROM ILIGAN CITY FOR A GIVEN SCHOOL YEAR
School Year 1st Sem 2nd Sem Average % Percentage Average

Student Ratio of “x” Number of
(A) (B)
per to “Z”. Students
Semester not from
IIigan
(A+B)
City
2
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2012-2013 2538 2489 2514 55.21%
1388
2013-2014 2691 2545 2618 49.89%
1306
2014-2015 2760 2682 2721 51.1%
1390
2015-2016 2862 2767 2815 53.45%
1505
2016-2017 2959 2899 2929 52.95%
1551
Average Male Students not From Iligan
for the last five years per semester 1428

Table 6 shows the projected number of male students that are not from
Iligan City who will enroll in MSU IIT for the next five (5) years using the
average growth rate of 3.90%.
TABLE 6: PROJECTED NUMBER OF MALE STUDENTS WHO WILL ENROLL IN

THE NEXT 5 SCHOOL YEARS (Average Growth Rate is 3.90%)
1st 2nd Total Per Average
Semester Semester School Number of
School Year %
Year Students
Percentage
not from
Ratio of “x”
IIigan
to “Z”.
City
2018-2019 3074 3012 3043
52.52%** 1598
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2019-2020 3194 3129 3162 52.52%
1661
2020-2021 3319 3251
3285 52.52% 1726

2021-2022 3448 3378 3413 52.52%
1793
2022-2023 3582 3510 3546 52.52%
1862
Average Male Students Not from Iligan City
1728
**=55.21%+49.89%+51.1%+53.45%+52.95%
5 =52.52%B
Supply
There is insufficient data as to the exact number of households

that offer student housing accommodation in Iligan City
The study has interviewed 10 dormitories/houses that are located in

Iligan, near Tibanga. The 10 dormitories interviewed are located within
the proximity with the University and the surrounding areas. It was able
to determine the number of rooms, rental rates policy and their
expansion plans for the future. The projected supply data will be derived
from this survey.
According to the Census of Population and Housing in (CPH), Iligan City

is increasing by almost an average of 1.14% annually. It shows that there
are also a significant number of people aside from students that need
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housing. Tibanga, Iligan City, where MSU IIT is located has 1799
households that basically serve the needs of MSU IIT. This study will
assume that about 2% of the total household in the town of Iligan is
engaged in offering student housing accommodations for male
occupants. The study arrived at this percentage based on the
assumption that the term “household” from the data taken from the
population census does not equate as a “homeowner”. Thus, there could
be two or more households in a single dwelling unit. The researchers
only include the household
The projected increase of households will be used in determining the

projected supply.
Supply Data and Computation
Projected supply of rooms will be taken from the maximum capacity per
head as occupants of the dormitories, boarding house and apartments
that were surveyed and the following are:
Table 7 List of Households/ Boarding Houses that offer student housing

as bed spacing with their maximum capacity
NAME OF HOUSEHOLD OR MAXIMUM CAPACITY OF
BOARDING STUDENTS
RJ Dormitory 40
A And J Boarding House 24
Bahay Ni Kuya Apartment 24
Espina Coves Dormitory 60
Diaz- Sanchez Boarding House 32
Jeg’s Apartment 20
Decena Residential Apartment 48
Anton Bautista Boarding House 24
Dalumangcad Apartment 15
Aling Nina’s Dormitory 24
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TOTAL 311
The ten (10) dormitories surveyed yielded an average number of rooms of
about 31.1 occupants. The average number of occupants is determined
by adding all the existing occupancy of the 10
households/boardinghouses surveyed and then divided it by 10 to get
average room per household.
The projected supply of occupancy will be determined by multiplying the

average number of occupants per household with the number of
households in Tibanga, Iligan City. The current number of households
in Tibanga is currently at 1799. Two percent of it is 36. This means
about 36 households in Tibanga are offering student housing of 31.1
spaces, which is the average occupancy from the survey. In order to get
the projected annual supply 36 was multiplied to 31, the projected
current supply yielded of occupants’ space available for student housing
in Tibanga, ILigan City is 1119.
In order to get the projected supply of space of occupants for the next five
years, the study will base its computation from the average increase of
household population in Tibanga, Iligan City, which is 1.14% Table 8 will
show the projected number of occupant’s space for the next five years
that will be available for housing.
TABLE 8: PROJECTED NUMBER OF SUPPLY FOR THE NEXT 5 YEARS
(Average Growth Rate of 1.14%)

Year Available Supply Average Growth Annual
Rate Supply
2018 1119
1.14% 1135
2019 1132
1.14% 1150
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2020 1147
1.14% 1166
2021 1161
1.14% 1182
2022 1176
1.14% 1199
TOTAL 5832
Average Annual Supply
1166
Currently, availability of student housing within the periphery of the
University is scarce. This might be due to the steady increase of the
student population. Aside from students of MSU IIT, there are also
students from Adventist Medical College, St. Michaels College, St. Peters
College which is a walking distance or one jeepney ride to The
Gentlemen’s Hub Dormitory.
Demand – Supply Gap Analysis
To evaluate the feasibility of the project, the demand and supply has
been carefully studied. Thus, the gap between the two must be resolved.
Table 9 presents the inability of the current dormitories/boarding houses
to cater to the increasing need of student housing.
Table 9: Demand and Supply Gap Analysis For the Next 5 Years
Excess of The Market

Demand Gentlemen’s Share or %
Years Projected Projected
Over Hub Full Of Full
Demand Supply
Supply Capacity Occupancy
to demand
2018 1598 1135 463 74 15.98%
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2019 1661 1150 511 74 14.48%

2020 1726 1166 560 74 13.21%
2021 1793 1182 611 74 12.11%
2022 1862 1199 663 74 11.16%

AVERAGE 1728 1166 562 74 13.39%
Based on the projections above, the next 5 school years, show that there
are just an enough students housing available. The projected average
demand or number of male students of MSU IIT, that are not from Iligan,
for the next five years is 1728 while the projected supply or space
available for occupancy is only 1162, therefore, there’s an average
shortage of 562. The average market share of The Gentlemen’s Hub
Dormitory for 5 years at full occupancy is expected to be at 13.39%. The
figures were taken from Table 6 and Table 8 respectively.
Succeeding years will have a deficit supply of student housing and it

increases at a fast rate. For a business to prosper, difference between
demand and supply must be significant. The table above shows that the
projected supply of student housing is inadequate for the huge demand
for student housing for the next 5 years. Therefore, the “The Gentlemen’s
Hub” dormitory will be able to address the need for this inadequacy.
Competitive Description
The competitors profile is analyzed through determining the competitor’s

strengths and weaknesses. The 10
dormitories/boardinghouses/households that the study surveyed are the
direct competitors of The Gentlemen’s Hub Dormitory.
There are three types of student housing in Tibanga, Iligan City. The
following are for Room for Rent, Bed Spacing and Apartments.
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The surrounding community of MSU-IIT provides the student housing for

the rest of the students. It is provided mostly by private houses and some
are multiple room apartments.
There are big dormitories in the area. Some have more than 50 rooms.
Others have 15. The big dormitories are usually open for all genders. It
has studio types and rooms that are rented out to bed spacers. Studio
rental starts at Php 4,000 exclusive of light and water, the room can
accommodate two persons..
Private houses with extra rooms are also being rented out to bed spacers.
Normally, these rooms are cramped and usually accommodate 4 to 8
persons in one room. The owners of these houses maximize the number
of persons that can be accommodated in the room regardless of its size.
Generally the rooms are small and owners of these houses are trying to
take in as many students as possible since there is a strong demand.
This type of accommodation offers no privacy and horrible living
conditions. Bed spacing is considered as the cheapest student housing.
Bed spacing cost around Php 1,300 to 1,500 and it’s inclusive of light
and water. This accommodation provides the worst living conditions.
Apartments are considered the best student housing. The only

disadvantage is the high rental rate that starts at Php 6,000. There are
also houses that rent out rooms. It usually starts at Php 3,000. The only
catch for this type is that the owner imposes a limit on the number of
occupants. Normally, the room should accommodate 2 to 4 persons only.
All types of student housing has a policy of “a first-come-first-served

basis”. This indicates that there is a strong demand for student housing
in Tibanga, Iligan City. Furthermore, it indicates that the community
cannot fully accommodate the demand for student housing.
SWOT Analysis
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Strength
 An increasing number of the population impliedly means

increasing number of students.
 There are changes in the number of enrollees in MSU IIT that is

favorable as to the number of the proposal’s demand.
 There is always a demand of education, so shelter does.
Weaknesses
 The majority of the dormitories, apartments or bed spacers have

been exploited without any interior repair works.
 Rooms or unit rented are usually subject to fast and high

depreciation expense.
 TRAIN Laws has a major impact in the expenditure behavior of

every citizen, thereby Cost of Living expenses has been affected
either favorably and unfavorably in the long run.
Opportunities
 To construct and thus create high quality accommodation services

for students and the microclimate environment which meets all
hygiene standards, safety and security precautions.
Threats
 The incapability to provide students with accommodation will

damage the prestige of higher education institutions.
 Students will refuse to live in dormitories because of poor living

conditions and unsatisfactory microclimate environment.
Marketing Strategy
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Since, the new project is new and has not recognized its own
identity and to be fully equipped with the suited marketing strategy the
following marketing mix of the 4Ps are provided below:
Product/Service
The Gentlemen’s Hub will be offering high-quality accommodation

and services with fully equipped amenities and facilities to its male
occupants.
Price
Pricing Strategy
Most of households that offer student housing surround the

MSU IIT are bed spacing that rents for Php 1,300 to Php 2,000 a month.
The rental rates of the Gentlemen’s Hub dormitory will be competitive.

Aside from the rental rates of the adjacent houses, other factors such as
the convenience and room size will be factored in for the rental rate of
the dormitory.
The dormitory will have thirteen rooms that will be rented out as a room
and bed spacers.
The monthly rental rate of the dormitory for bed space is Php 2,000
monthly inclusive of light and water.
The rooms of the Gentlemen’s Hub dormitory will be targeted to upper

class students. There are also students who belong to the AB Class that
can afford to rent one room. There is a 2-person occupancy limit for the
room
. It has its own toilet and bath but the rent is exclusive of light and
water.
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The rest of the rooms will be offered for bed spacing. It is a co-ed dorm.
Each room has 2 or 3 double deck beds. Each room will be able to
occupy 6 to 8 persons. The dormitory will provide the cushions but no
pillows. It is inclusive of light and water expenses. However, extra
appliances such as computers and flat irons will be charged an
additional of P 100 per month per person. The rooms are also provided
with closets.
Deposit Scheme
Current rental practices in the area are as follows:
Bed-space - One-month advance and one-month deposit. Light and

water is included.
The dormitory will implement a uniform deposit scheme for the room and
bed space. All will require one month deposit and one-month advance.
Extra appliances such as ironing, television and computer will

be charged an additional monthly rental of P 100. No need for deposit for
this.
Place
Our dormitory building is accessible enough to the students or

target market with regards to the location. In terms of the distribution of
information about the existence of the dormitory in relation to the
promotion, we are conveniently situated about a 100 meters away from
MSU-IIT and Adventist Medical College.
Promotion
Since the proposed project is not a new concept in Iligan City, advertising
campaign would necessarily be done. As one of its marketing approach,
the proponents will take advantage of the social medias, like Facebook,
Instagram, Snapchat, Twitter and etc, to make its existence known to the
26
public. We will make sure the services are directly accessible to the
prospective dormers via cell phone.
When the construction is nearly finished there will an

announcement over radio stations, displaying posters in areas
frequented by the target market and there will be distribution of fliers
and print ads, and a hand
Projected Revenues
Table 10 shows the annual projected revenue for five (5) years. The
annual rental revenue is assumed at 80%, 90%, 95% in the first, second
and third year respectively. After which, it will have an occupancy rate of
100%.
Table 10: Projected Revenues for the Next Five (5) Years
School Year Number Number Renta Numb
of of l Fee er of
Occup Annual
Occupa Occupied In Month
ancy Sales
nts Space Peso s
Rate
In
Peso
2018-2019 74 80 59 2,000 12 P1,416,0
% 00
2019-2020 74 90% 67 2,000 12 1,608,00
0
2020-2021 74 95% 70 2,000 12 1,680,00
0
2021-2022 74 100% 74 2,000 12 1,776,00
0
2022-2023 74 1 74 2, 12 1,776
27
00% 000 ,000

TOTAL REVENUES P8,256,,
000
G. CONCLUSSION:
The Gentlemen’s Hub Dormitory Project is VERY VIABLE.
The first year of operations is expected to gross an income of almost

P1,416,000.00 for the bed space rental alone. There will be an increase
on the rental revenue for the next years because the occupancy rate is
expected to increase at 10% after one years and 5% for the next two
years, although the .rental rates will stay the same. On the fourth year,
the dormitory will have a 100% occupancy rate as compared to the 80%
occupancy rate on its first year of operation.
Furthermore, the current supply of rooms for student housing is still

insufficient to meet the increase of student population.
The dormitory will have a reasonable income for the first three years of
operations. This small income is attributed to the 80% occupancy rate of
the dormitory as newly-open establishment. This is a conservative
estimate considering that the current occupancy rate where the proposed
site of the dormitory is at 100%.
28
CHAPTER III
TECHNICAL ASPECT
A. Service Description
The Gentlemen’s Hub is the proposed project made by the

researchers. It will be a dormitory designed exclusively for male students
at undergraduates, graduate and postgraduate reviewers and lecturers.
It will provide excellent quality service designed to contribute to the
personal well-being and academic growth of its each residential student.
It is 3 story building with a maximum capacity of 74 boarders

and well-designed housing equipped with complete amenities and
facilities that would cater the needs of its residents at the most
affordable cost and just price.
29
B. Services
In line with the mission and objectives of the Gentlemen’s Hub, It will
provide a quality service and a healthy environment for learning and
living. The Gentlemen’s Hub shall be equipped with fire alarms; fire
extinguishers, fire exit and CCTV camera each floor for safety and
convenience of its residents. There will be power generator and water
reservoir to insure the 24/7 water and power supply. The Gentlemen’s
Hub will also provide the following services:
 Laundry service
The gentlemen’s Hub will offer do you own laundry service for its
tenants; it will have 3 washers and a dryer.
 Study lounge
The study Lounge will locate at second floor. The Gentlemen’s Hub
will help its tenants to its academe by providing a quality education
through monitoring group studies and reviews with a quiet and
comfortable place to work and study. A free Wi-Fi shall be installed in
this area.
 Kitchen
A kitchen shall be found at the first floor of Gentlemen’s Hub. It is
where the tenants can prepared their foods. A kitchen sink, cabinets
where they can placed their rice cookers and dining table will provided
to its tenants.
 Mini Gym
For healthy living and Good health the Gentlemen’s Hub will
provide a Mini Gym sited at the rooftop with a standard rate of 30 pesos
30
per hr. The tenants may also opt premium membership with 300 pesos
per month.
 Housekeeping and maintenance
There shall be a two housekeepers and shall be availabe 6:00
a.m to 5:00 p.m. He will be responsible in collecting a nd segragating
garbages, cleaning tha hallway, the kitchen, the laundy room, the
visitors and the study lounge . The maintenance personnel shall be
available 24/7 since he will stay inside the dormintory.
 Garbage and waste disposal
Segragation of Malata and Di-malata garbages will be
impelemented , the manangement will provide a garbage can in every
room and will be collected every day by the assigned personnel
C. MENU
Facility Features Price Quantity Total

1. Plastic Table 2,498 6 14,988.00
2. Plastic Chair 370 36 13,320.00
3. Ceiling Fan 1,449 2 2898.00
kitchen
4. Kitchen Sink 2,498 1 2,498.00
5. Garbage can 150 3 450.00
6. Light Bulb 100 5 500.00
7. Exhaust fan 780 1 780

Total P 35,434.00
1. Table 2,500 1 2,500.00

Manager and
personnel 2. Foam 1,147.50 1 1,147.50
room 3. Chair 370 3 1,110.00

31
4.Toilet and lavatory 3,650 1 3,650.00
5.Wash Basin 200 1 200.00

6.Light Bulb 100 2 200.00
Total P 8,807.50
1. Electric Fan 800 1 800.00
2. Sala set 6,500 1 6,500.00

Lobby
3. Light Bulb 100 4 400.00
4. TV 12,890 1 12,890.00
Total P20,590 .00
1. Double-Deck 3,000 37 111,000.00
2. Foam 1,147.50 74 84,915.00
3. Study Table
1,800 13 32,400.00
(wooden)
4. Plastic Chair 370 74 27,380
Room 5. Ceiling Fan 1,449 13 18,837.00
6. Light Bulb 130 15 1,950.00
7. Cabinet (Wooden) 3,995.65 13 51,943.45
8. Water basin 150 14 2,100
Total P330,525 .45
Bathroom
1. Toilet and
3,650 14 51,100.00
Lavatory
2. Wash Basin 200 14 2,800.00
3. Water Dipper 75 13 975.00
4. Light Bulb 100 14 1,400.00
Total P56,275 .00
1. Washer and
27,195 3 81,585.00
dryer
Laundry
3.ceiling fan 1,449 1 1,449.00
Room 4.chairs 370 6 2,220.00
5. Light bulb 130 2 260.00
TOTAL P85,514.00
Study 1.table(wood) 4,000 6 24,000.00
Lounge
32
2.chair (wood) 474.90 12 5,695.20
3.ceiling fan 1,449 2 2,898.00

4. Light Bulb 130 4 520.00
5. PLDT WI-FI 1,200 1 1,200

34,313.00
TOTAL
1. Mini Gym *see

55,485 55,485.00
Equipment appendices
Mini-GYM 2. Air conditioner 10,560 1 10,560.00
66,045.00
TOTAL
1. Fire
1,100 7 7,700.00
Extinguisher
Others
2. CCTV Camera 10,426 1 (package) 10,426.00
3. Coffee vending 9,000 2 18,000.00
Total P 36,126
*prices assumed from the actual survey in Citi Hardware and shoppe.ph
D. Facilities and equipment

The Gentlemen’s Hub building that will be shall provide good
safety and quality of the materials used in the building. Each story
shall comprise of the following:
Facilities and equipment
FLOOR EXISTING FEATURES DESCRIPTION
The will sited in the 1st
1ST FLOOR 1. kitchen floor. It is composed of
kitchen sink 6
rectangular plastic tables
having 6 plastic chairs
each, and 2 ceiling fans
which is intended for the
convenience of the
boarders.
2. Manager’s Room The manager will have its

33
own table, chair, ceiling

fan bathroom and
cabinet.
This room is where the

3.personnel room housekeeper and
maintenance personnel of
the building will stay. The
maintenance personnel
will have his own
bathroom and bedframe.
It is where Gentlemen’s
4.Lobby Hub will entertain its
visitors and other people
inquiring about the dorm.
It composed of an
inexpensive sala set and
a TV.
5.laundry room 3 washers, a dryer ceiling

fan and 6 chairs will be
placed in this area.
6.Rooms (8 pax) Two rooms will be
allocated for the boarders
with 4 double decks,
comfort room, built-in
cabinet and a wooden
study table with 8 plastic
chairs and a ceiling fan.
7.Common Bathroom A common bathroom will

be available for the rooms
with capacity of 8
persons. This includes
34
water basin provided by

the management .
4 rooms shall be
2nd Floor and 3rd 1. Rooms (4 pax) available for the boarders
floor with a maximum capacity
of 4 persons. . Each room
will have two double-deck
beds, a built in cabinet
which is divided into 4
parts, a ceiling fan, and a
wooden study tables with
4 plastic chairs. A
Bathroom will be
available in every room.
The management will also
provide a water basin for
its boarders.
7 rooms shall be
2. Rooms (6 pax) available for the boarders
with a maximum capacity
of six persons. . Each
room will have three
double-deck
Beds, a built in cabinet
which is divided into 6
parts, a ceiling fan, and a
wooden study tables with
6 plastic chairs.
A Bathroom will be
available in every room.
The management will also
provide a water basin for
its boarders.
3. Study Lounge It shall be cited in the 2 nd
floor and shall compose
of 6 wooden rectangular
tables with a built in
chair. A coffee vending
35
machine ceiling fan and a

Wi-Fi will be available in
this area.
Roof deck 1. Mini gym A selected facilities and
equipment for healthy
living shall be available in
this area. An air
conditioner shall place
also.
2. Mechanical Area The generator, water
reservoir and other tools
will be placed in this
area.
3. Open space This area will serve as
multipurpose area for the
boarders of gentlemen’s
hub.
E. Utilities
The residents will be assured offered with complete utilities
needed. We also offer service facilities like laundry, good furniture,
and Internet. Electricity will be provided by Iligan Light and Power,
Inc. and the water supply of the building will be provided by Iligan
Waterworks System. And the internet and telephone service will
provide by PLDT.
F. Project Costs
1. Land - The land is located at Tibanga Highway Iligan City. It
has an area of 415 meters with an adjacent lot having an area
of 72 sq. meters. It is classified by the Commissioner of Internal
Revenue under the jurisdiction of the Revenue District Office
No. 101 (Iligan City) as a residential regular having a zonal value
36
Of 2000 pesos per square meter and have a fair market value of
3,500 per square meter. The land shall first be cleared and the
costs incurred shall be capitalized.
Land
Description Cost Quantity Total
Land P 3,500 sq. meter 415 sq. meters 1,452,500
TOTAL P 1,452,500
2. Building - The building shall have three floors and a roof deck
with a total floor area of 410 square meters. It shall be
constructed by a carefully evaluated contractor and based upon
the partners’ specification. The building shall be depreciated in
a straight line basis over the building useful life of 30years.
Building cost
Description Amount
Foundation 658,786.00
Super structure 4,500,272.00
Flooring 1,740,215.00
Plastering and wall tiles 1,600,340.00

Painting 800,170.00
Wood work 256,800.00
Electrical drainage and plumbing 1,076,200.00

TOTAL BUILDING COST P10,632,783.00
*This cost estimate is only an approximation of the most common project needs made by
contractor firm. Actual cost may vary depending on exact requirements.
3. Furniture and Fixtures - The furniture and fixtures shall

include the tables, chairs, cabinets, sofas, TV, bedframes, and
cabinets. These shall be annually depreciated at a rate of 20%
of their acquisition cost.
37
4. Pre-operating cost
Description Amount
Registration in Securities and Exchange P13,145.00

Commission
Registration in Barangay P75.00
Business Permit From Mayor’s Office P1,500.00
Registration in Bureau of Internal P5,500.00

Revenue
Fire and Safety Inspection Certificate 5,500.00
TOTAL P25,720.00
TOTAL PROJECTED COST
Total Projected Cost

Description Total
Land 1,452,500.00
Building 10,632,783.00
Facilities and equipment 673,629.95
Pre-Operating Costs 25,720.00
TOTAL PROJECTED COST P12,768,432.95
CHAPTER IV
Organizational and Management Aspect
A. Pre-operating Activities
38
In order for a business to come into existence and to operate

legally, it should be registered with the Securities and Exchange
Commission (SEC) and obtains all relevant licenses.
A.1 . Government agencies for registration

a. Securities and Exchange Commission (SEC)
b. Local Government Units (LGU) where business is located
c. Barangay
d. Mayor’s office
e. Bureau of Internal Revenue (BIR)
f. Fire and safety Inspection Certificate
A.2.Basic requirements and procedures in registering a

Partnership Business
1. Registration of the Partnership in SEC

 Must Submit:
- Name Verification slip
- Articles of Partnership
- Registration Data Sheet
 Payment of:
- “1/5 of 1% of partnership’s capital but not less
than 2,000,000”
- Basic service charge: public reference charge of
P50.00, authentication of documents of P50.00.
- Reproduction of documents in authenticated
copy: By laws of P100.00 and other fees
amounting to P450.00.
(Source: A.O. 31 released on 30 January 01 through DOF-DBM-NEDA

Joint Circular No.1-2013)
39
2. Registration in Barangay
 Go to the barangay where the business is located to
secure and fill-up application form.
 Submit your completed application form together with
the following
 SEC Certificate of Registration
 Two (2) valid ID’s.
 Proof of address such as Contract of lease.
3. Registration in the Mayor’s office
 Go to the municipal office where your business is
located to secure and fill-up application form.
 Submit your completed form together with the
following
- SEC Certificate of Registration
- Barangay Clearance Certificate
- Two (2) valid IDs.
- Proof of address such as Contract of Lease.
4. Registration in the Bureau of Internal Revenue (BIR)
 Go to the Regional District Office where your business
is located.
 Fill-up the BIR form 1902- Application For
Registration (for Partneship)
 Submit your completed registration forms together
with the following:
- SEC registration
- Barangay Clearance Certificate
- Mayor’s Business Permit
- Two Valid IDs
- Proof of address such as Contract of lease.
 Pay the following fees:
40
- Annual registration fee (P500.00)

- Certification fee (P15.00)
- Documentary stamp (P15.00)
 Register your book of bank accounts and
receipt/invoice.
 Claim your Certificate of Registration (BIR form 2303)
5. Fire and safety Inspection Certificates
(Source: Board of Investment, Department of Trade and Industry)
Table 4.1 Breakdown of Business Permit and License
Business Permit and Licenses Amount of Registration
Registration in Securities and Exchange P13,145.00

Commission
Registration in Barangay P75.00
Business Permit From Mayor’s Office P1,500.00
Registration in Bureau of Internal Revenue P5,500.00
Fire and Safety Inspection Certificate 5,500.00
TOTAL P25,720.00
B. Management during the Operating Period

Project Schedule
Pre-Operating Schedule Time Allotted
1. Conduct Feasibility Study

November 22, 2017 – February 20, 2018
41
During this period, the proponents will conduct a study about

the proposed project and will be able to investigate whether the
business is feasible or not. In order to examine the project’s
feasibility, the proponents will gather data with the use of various
instruments and techniques such as questionnaires, interviews
and information from legit websites, books, journals and other
sources of essential data with regards to the study.
2. Putting up Equity
December 06, 2018 – February 22, 2018
Capitalization is crucial in establishing a business as the
business will not be materialized without it. Finances of the
proposed business must be planned wisely during the period. The
proponents will contribute equally and ample time is given in order
to complete the amount needed for the operation of the business.
The proponents agreed to contribute ₱705,875.00 at the end of the
January.
3. Registration March 02, 2018 – April 31, 2018
All the legal procedures and requirements for the start of the
business must be accomplished during this period. Securing
business permits from Securities and Exchange Commission (SEC)
Department of Trade and Industry (DTI) Local Government Units
(LGU) where business is located, Barangay, Mayor’s office, Bureau
of Internal Revenue (BIR).
4. Acquiring Land and Construction of the building

May 01, 2018–November 31, 2018
During this period, the proponents are going to locate the

proposed dormitory at Tibanga Highway Iligan City. It has an area
of 415 meters with an adjacent lot having an area of 72 sq. meters.
42
It is classified by the Commissioner of Internal Revenue under the

jurisdiction of the Revenue District Office No. 101 (Iligan City) as a
residential regular having a zonal value of 2000 pesos per square
meter and has a fair market value of 3,500 per square meter. The
land shall first be cleared and the costs incurred shall be
capitalized. Having the amount of 1, 452,500, including the
amount of construction of the building having the cost of
10,632,783.00.
5. Canvassing and Acquiring of Equipment

December 1- 28, 2018
For this duration, the proponents will start to canvass and

acquire equipment that is needed for the dormitory.
6. Canvassing and Purchasing of furniture

January 3 – 31, 2019
The proponents will canvass and purchase the needed
furniture and fixtures in the dormitory.
7. Hiring and Training of Employees
February 1 – 28, 2018
Selection of the qualified applicants will be done in this
period. After being qualified, orientations will be given to employees
to have knowledge regarding the business. Preparations in Their
assigned tasks such as handling of cash and the right approach to
customers will be taught to employees in order to build up their
confidence and increase productivity that will help them sustain
motivation in their current state, as well as in the future. There are
also factors to consider that significantly influences the employees
on how they will maintain a positive impression in the working
environment by recognizing their hard works and advocating
43
balance in life and work. Safety procedures will be extensively

employed to assist the employees with working safely.
8. Promotional Campaign March 01 – 31, 2018

Since the setting up of the business is nearly approaching,
this is the best time to endorse the Dormitory. Having enough time
to notify people about the dormitory by giving leaflets or brochures,
posting through social media platforms and blog sites, and
informing the public verbally will make the business known. The
goal of the proponents is to make the Dormitory well-known in
order for people to recognize and live in the dormitory.
9. Start of Normal Operation April 2018 Onwards
After accomplishing all the necessary requirements, the business will

start to operate. Continuous promoting of dormitory is still needed and
meeting the demands of the customers is to be obtained for the
customers’ satisfaction.
GANTT CHART
44
C. Type of Business Organization
The project will be in a form of General Partnership, which

means that all partners are personally liable of whatever the debt it
has. Each partner will share equal capital contribution and will
share Profits and Losses resulting from operations equally as well.
The partners have agreed to contribute capital in the form of

cash. Moreover the capital contribution amounting to P 1,000,
000.00 will be gleaned from the fellow partners in the partnership.
And the partnership will loan P7, 500,000.00 to a bank.
The following persons are the originators of the business and

each respective capital contributions are shown below:
45
Names Type of Partners Position in Capital
As to As to The Contribution
Liability Contribution Company
1. Abdullah, Asliah General Capitalist - P 1,000,000
2. Abdulla, Nor- General Capitalist - P 1,000,000

Aine M.
3. Bugtay, Lourijen General Capitalist - P 1,000,000

C.
4. Cadabok, Sittie General Capitalist - P 1,000,000

Asiah.
5. Hadji noor, General Capitalist - P 1,000,000

Nasrefa M.
6. Longakit, Mary General Capitalist - Land

Joy C. contribution
(worth)
P 1,000,000
7. Lucman, Abdul General Capitalist - P 1,000,000

Raouf D.
8. Macarampat, General Capitalist - P 1,000,000

Sittie Aynah B.
9. Macarampat, General Industrial – General P 1,000,000

Sittie Airah B. Capitalist Manager
10. Omar, Naif U. General Capitalist - Land

contribution
(worth of)
P 1,200,000
Land
contribution
11. Tanael, Eva L. General Capitalist - P 1,000,000
12. Jamil, Esmail D. General Capitalist - P1,000,000

46
P12,200,000
Amount to be loaned from the Bank P7,500,000.00
TOTAL P19,700,000.00
D. Organizational chart
General
Manager
Officer in
Charge
Maintenance
janitor 1 Janitor2
and Security
D.1 Job Specification and Job Qualification
Personnel Job Specification Job Qualification

Is an executive who has Must be a graduate of
overall responsibility of the Bachelor of Science in
business including Accountancy or other
managing both the revenue related field.
and cost elements of a
Must administer policies on
company’s Income
subjects such as employee
General Manager Statement Known as profit
conduct and discipline, use
and loss P&L responsibility.
of property, accounting and
He is obliged to plan, staff,
handling of money.
direct, control and lead all
Plan and allocate the use of
47
workers or subordinates. equipment, materials, other

He is obliged to conduct assets and human
over-all evaluation of the resources.
business performance and Having a Good Personal
situation right from the Background.
start of operation. He’s
Must have an
involved in promoting the
administrative Ability and
business and develops the
Sufficient knowledge in
marketing strategy for the
relation to the Business.
business survival.
College Degree Holder

Proven experience as an
Performs routing clerical,
Assistant Manager or
secretarial and
similar position
Officer in charge administrative work in
Experience with recruiting
answering telephones,
and performance evaluation
receiving public, providing
processes
customer assistance, data Familiarity with financial
processing, and record and customer service
keeping. He is optimized for principles
posting on online job Problem-solving attitude
boards or career pages
Organizes, supervises, and Must be at least high

participates in the cleaning, school Graduate
Must be 18 years old and
maintenance, and repair of
above
the building, adjacent walks
Not have been convicted of
Maintenance and security and ground and equipment.
felony or violent crime
Personnel He checks heating cooling Be mentally, physically
and any related equipment’s and emotionally competent
of the business. He shall Be able to pass a state
also maintain safe and mandated criminal
secure environment among background check as well
customers and employees as an N.B.I background

check.
48
by patrolling and monitoring

premises and personnel. –
provides administrative
support for the security
functions of a business.
Duties may include
issuance and maintenance
of access cards and key,
supervision of security
and/or clerical support
staff, monitoring of alarm
system,[preparation of
clearance forms, and
maintenance of security
documents and other data
in either hard copy or
computerized formats.
Janitor/Cleaning Aid Keeps the building clean Must be at least a High

and in an orderly condition. School Graduate
Perform heave duty Must have a good moral
cleaning duties such as character
cleaning floor, washing Must not have the age of
rugs, washing walls and 50 years old and above.
Willingness to work early
wiping windows and
morning or late night shifts
removing rubbish and
Ability to work well under
trash. Duties may include
minimal supervision
tending furnace and boiler, Cleaning and supplying
performing routine designated building areas
maintenance activities.
Notifies management for
the need to repair and
leaning debris from the
hallways/side walk.
IV3. Segregation of Duties

49
WORKER TASK
Managing
Verifies the Cash Count
Assist in budget preparation and expense
GENERAL MANAGER
management activities.
Plan, coordinate and manage all business
operations to achieve corporate goals
Policy maker
Bookkeeper
Officer in Charge Managing in the absence of the General

Manager
Evaluating employee performance
Accommodates the customer upon their
arrival Posts Job
Communicate occupant’s requests and
complaints to the appropriate department
WORKER TASK
Maintaining the overall welfare of the
Maintenance and Security entire dormitory’s facilities
Keeps the safety of the boarders of the
dormitory
Ensuring that there are no threat that can
enter the premises
Reviewing the surveillance camera’s
records
WORKER TASK
Keeps the Cleanliness of the dormitory
JANITOR premises
Informs the management in case there are
possible repairs needed in the dormitory
Keeping the bathroom Clean
Responsible for throwing the garbage when
the garbage collector arrives
D.2. Salaries and benefits and bonuses
Personnel Compensation /Incentive/Bonus

Capitalist partner Partners will not receive Salaries but are
50
entitled to a withdrawal amounting to P50,

000.00 per year. the partners will equally
share the profit/loss after allocating and
all considerations relating to the attendant
General Manager The general manager will receive a 5%
bonus allowance. He is entitled to a sick
Leave and also given a vacation leave for 2
days with an allowance given from the
personal money of the partners.
Officer in Chare The assistant manager will receive a salary
of P12, 000.00 per month and a total of
P144, 000.00 for every year. He is entitled
to a sick leave and also given vacation
leave for 2 days.
Maintenance and security He will be receiving a monthly salary of
10,000 per month and a total of
120,000.00 per year. He is entitled to sick
leave and also given a vacation leave for 2
days. Will also, receive health benefits.
Janitor There are 2 janitors hired. The janitors will
have 2 days of day off every week having
each monthly salary of P4,500 each and a
total of P54,000.00 .He is entitled to a sick
Leave and also given a vacation leave for 2
days Will receive monetary and non-
monetary incentives and health Benefits.
51
CHAPTER V
FINANCIAL ASPECT
A. TOTAL PROJECT COST
Property, Plant and Equipment

Land P1,452,500.00
Building 10,632,783.00 P 12,085,283.00
Facilities and Fixed Assets
Kitchen P 35,434.00
Manager and
personnel room 8,807.50
Lobby 20,590.00
Room 330,525.45
52
Bathroom 56,275.00
Laundry Room 85,514.00
Study Lounge 34,313.00
Mini-GYM 66,045.00
Others 36,126.00
672,429.95
Pre-operating Cost
Advertising 10,000.00
Duties and Permits 25,720.00 35,720.00
TOTAL PROJECT COST P12,768,432.95
B. Fund Sourcing
The proposed project shall be finance through borrowings and

capital investments of the owners. All funds needed to start the business
will mainly come from the internal and external sources. For internal
sources, 10 partners will initially invest Php1, 000,000.00 for a total of
Php10, 000,000.00; one partner shall invest an agriculture lot worth
Php1, 000,000 and the other partner invests an industrial lot worth
Php1, 200,000.00. The total partnerships contributions are Php12,
200,000.00. For external sources, the proponents avail a commercial
loan from the bank through government subsidy of Php7, 500,000.00
with an interest of 3%, compounded monthly and with the term of 10
years.
C. Basic Assumption
53
1. The land will be bought with a total area of 415 sq. m. for Php1,
452,500.00.
2. Building will be constructed with one ground floor, two floors and
a rooftop.
3. The wages of the labor will be included in the contract price.
4. The Gentlemen’s Hub can accommodate up to 74 male bed
spacers.
5. Each bed spacer of Gentlemen’s Hub shall pay P2,000 per month.
6. Laundry service is a “Do it yourself” laundry with a rate of “HULOG
SAMPU”, or a prepaid card of P250 per month.
7. Mini gym’s standard rate will be 30 pesos per hour and the option
to subscribe with premium membership for 300 pesos per month.
8. Sittie Aynah Mcarampat, a partner, will act as a general manager
with 5% bonus allowance on net income before bonus and tax.
Officer in charge, janitors and maintenance will be paid with
salaries accordingly.
9. The depreciable life of the building is 50 years.
10. All fixed assets will have a depreciable life of 10 years.
11. Utilities expense includes electricity and water consumption, wifi
and telephone bills. In computing the total utilities expense for every
year, the electricity and water consumption for every month should
accounted for separately. Electricity for the first year is Php12, 000
monthly, water is Php3, 000 per month wifi and telephone is Php1,
200 monthly. Since there will be an increase of occupants every year,
the elect
ricity and water consumption are the most affected to increase every
year, except for the wifi which is fixed monthly.
12. Insurance of the building will be Php18, 000 annually
54
D. FINANCIAL PROJECTION FOR FIVE YEARS

D.1 COMPARATIVE STATEMENTS OF FINANCIAL POSITION
COMPARATIVE STATEMENTS OF FINANCIAL POSITION
AS OF ENDED YEAR 1 TO YEAR 5
ASSETS
Current Asset Not Year 1 Year 2 Year 3 Year 4 Year 5
es
Cash 3 P4,088,517 P3,781,766. P3,339,435 P3,051,346.0 P2,759,50
.00 00 .00 0 5.00
Total Current 4,088,517. 3,781,766.0 3,339,435. 3,051,346.0 2,759,505.
00 0 00 0 00
Noncurrent
Assets
Land 3,652,500. 3,652,500.0 3,652,500. 3,652,500.00 3,652,500.
00 0 00 00
Building, net 4 10,423,127 10,207,471. 9,994,815. 9,782,159.00 9,569,503.
.00 00 00 00
Facilities and 5 605,187.00 537,944.00 470,701.00 403,457.00 336,215.0
Equipment, net 0
Total noncurrent 14,680,814 14,397,915. 14,118,016 13,838,116.0 13,558,21
assets .00 00 .00 0 8.00
TOTAL ASSETS 18,769,334 17,967,025. 17,244,795 16,676,806. 16,126,33
.00 00 .00 00 4.00
LIABILITIES AND EQUITY

LIABILITIES
Current Liabilities Year 1 Year 2 Year 3 Year 4 Year 5
Loans Payable- 6 750,000.00 75v0,000.0 750,000.00 750,000.0 750,000.0
55
current portion 0 0 0
Total current 750,000.00 750,000.00 750,000.00 750,000.0 750,000.0
liabilities 0 0
Noncurrent
liability
Loans Payable- 6 6,000,000. 5,250,000.0 4,500,000.00 3,750,000. 3,000,000.
noncurrent 00 0 00 00
Total Noncurrent 6,000,000. 5,250,000.0 4,500,000.00 3,750,000. 3,000,000.
00 0 00 00
Total Liabilities 6,750,000. 6,000,000.0 5,250,000.00 4,500,000. 3,750,000.
00 0 00 00
PARTNERS’ EQUITY
Partners’ Capital 7 12,019,334 11,967,024. 11,994,795.2 12,176,80 12,376,33
.00 57 7 5.79 3.80
P18,769,33 P17,967,02 P17,244,795. P16,676,8 P16,126,3
4.00 4.57 27 05.79 33.80
D.2 COMPARATIVE INCOME STATEMENT

COMPARATIVE INCOME STATEMENTS
FOR THE PERIOD ENDED YEAR 1 TO YEAR 5
Accounts Notes Year 1 Year 2 Year 3

Rental Income - Bed P 1,416,000.00 P 1,512,000.00 P 1,608,000.00 P1
Spacer
Other Income – 159,000.00 168,000.00
Laudry Service
Other Income-Min 165,600.00 176,400.00 190,800.00
Gym
Gross Income 1,731,600.00 1,847,400.00 1,966,800.00 2
Less: Operating
Expenses
Salaries 10 372,000.00 372,000.00 372,000.00
Interest 6 225,500.00 202,500.00 180,000.00
Insurance 12 18,000.00 18,000.00 18,000.00
Utilities 8 194,000.00 196,000.00 222,400.00
Depreciation-bldg 9 212,656.00 212,656.00
Depreciation-Fixed 9 67,243.00 67,243.00
Asset
Miscellaneous 11 20,000.00 13,000.00 16,500.00
Pre-Operating 35,720.00
Total Operating 1,145,119.00 1,081,399.00 1,088,799.00 1
Expense
Net Income 586,481.00 766,001.00 878,001.00 1
5%Bonus 14 29,324.05 38,300.05 43,900.05
Net Income before Tax 557,156.95 727,700.95 834,100.95 1
Tax 30% 167,147.09 218,310.29 250,230.29
56
Net Income After Tax P 390,009.87 P 509,390.67 P 583,870.67 P
D.3 COMPARATIVE STATEMENTS OF CHANGES IN EQUITY

COMPARATIVE STATEMENTS OF CHANGES IN EQUITY
Year 1 Year 2 Year 3 Yea

Partner’s Capital, Beg P 12,200,000.00 12,019,333.89 11,967,024.57 1
Add:
Net Income P 390,009.84 509,390.63 583,870.65
Bonus 29,324.05 38,300.05 43,900.05
TOTAL P12,619,333.89 12,567,024.57 12,567,024.57 1
Less: Withdrawals 600,000.00 600,000.00 600,000.00

Partner’s Capital, End P12,019,333.89 P11,967,024.5 P11,994,795.2 P1
7 7
D.3 COMPARATIVE STATEMENTS OF CASH FLOWS

COMPARATIVE STATEMENTS OF CASH FLOWS
Notes Pre-operation Year 1 Year 2 Year 3

Cash flows from
operating activities
Cash received from
rental income – P1,416,000.00 P1,512,000.00 P1,608,000.00
bed spacer
Cash received
from Laundry Services 150,000.00 159,000.00 168,000.00
Cash Received from
Gym Membership 165,600.00 176,400.00 190,800.00
Salaries 10 (372,000.00) (372,000.00) (372,000.00)
Insurance 12 (18,000.00) (18,000.00) (18,000.00)
Utilities 8 (194,000.00) (196,000.00) (222,400.00)
57
Miscellaneous 11 (20,000.00) (13,000.00) (16,500.00 )

Tax 13 (167,147.09) (218,310.29) (250,230.29)
Bonus 14 (29,324.05) (38,300.05) (43,900.05)
Pre-Operating (35,720.00)
Net Cash provided 1,3
by operating activities 895,409.00 1,248,400.00 37,900.00
Cash flows from
Investing activities
Purchase of Land (1,452,500.00)
Building Construction (10,632,783.00)

Purchase of Facilities and (672,429.95)
Equipment
Net Cash provided by (12,757,712.95)
investing activities
Cash flows from
Financing Activities
Cash received from partners 10,000,000.00
contribution
Receipt of Loan 7,500,000.00
Payment of Principal 6 (750,000.00) (750,000.00) (750,000.00)
Payment of Interest 6 (225,500.00) (202,500.00) (180,000.00)
Partners Withdrawal 7 (600,000.00) (600,000.00) (600,000.00)
Net Cash provided(used) by 17,500,000.00 (1,575,500.00) (1,552,500.00) (1,530,000.00)
financing activities
Net Increase/ P4,742,287.05 (680,091.00) (304,100.00) (192,100.00)
decrease in Cash
Cash Balance, beg. 4,742,287.05 4,088,517.00 3,781,766.00
Cash Balance, end P4,742,287.05 P4,088,517.00 P3,781,766.00 P3,339,435.00
D.5 Notes to Financial Statements

Notes to Financial Position
Note 1- Organization
58
The Gentlemen’s Hub is a student housing business or commonly

known as dormitory established by MAC FIRM on June 30, 2018 to
provide a very comfortable and safe place for primarily male students,
who come from different provinces and cities. Its main objective is to
provide a home-like surrounding for all its tenents/occupants. The
Gentlemen’s Hub will be a 3-storey type of building which is located at
Andess Bonifacio Avenue, Tibanga, Iligan City.
Note 2 – Significant Accounting Policies
A. Statement of Compliance
The financial statements have been prepared in accordance with

and comply with Philippine Financial Reporting Standards.
B. Basis of Preparation
The financial statements have been prepared on an accrual and

going-concern basis and the accounting policies have been applied
consistently throughout the period. The Financial Statement is
presented at Philippine Peso.
C. Property, Plant and Equipment
All Fixed Assets are valued at cost which includes all cost
necessary to bring the asset to working condition for its intended use
less accumulated depreciation and impairment. An asset is removed
from the statement of financial position if the company has no future
benefits from that said asset. Any gains and losses on disposal are
determined by comparing the proceeds with the carrying amount of the
asset and are included in the Income Statement. Depreciation is charged
so as to write off the full cost of fixed assets, other than land and
properties under construction, over their estimated useful lives using the
straight-line method.
59
D. Financial Liabilities
Financial Liabilities with interest bearing-note is measured at

amortized cost using the effective interest method. Derecognition of the
Financial Liabilities is when the obligation under that liability is expired,
discharged or cancelled.
E. Revenue
Revenues are recorded at the time of rendering or delivering the

service.
F. Expenses
Expenses are recognized upon payment of services, utilities

and/miscellaneous.
Note 3 – Cash
Year 1 Year 2 Year 3 Year 4 Year 5

Petty Cash P 10,000.00 P 10,000.00 P 10,000.00 P 10,000.00 P 10,000.00
Cash in Bank 4,078,517.00 3,771,766.00 3,329,435.00 3,041,346.00 2,749,505.00
Total P4,088,517.00 3,781,766.00 3,339,435.00 3,051,346.00 2,759,505.00

Table 5.1 Cash
 Petty Cash Fund – The Company will maintain a petty cash

fund to pay for small, miscellaneous expenditures. It is under
imprest method and will maintain a balance of not more than
P10,000.00.
 Cash in Bank – It will be used for future acquisition of any
additional machines or items. It will be deposited in the bank.
 The Company has no Cash Equivalents.
60
Note 4- Building

Cost P10,632,783.00 10,632,783.00 10,632,783.00 10,632,783.00 10,632,783.00
Less:
Accumulated 212,656.00 425,312.00 637,968.00 850,624.00 1,063,280.00
Depreciation
Total P10,420,127.00 10,207,471.00 9,994,815.00 9,782,159.00 9,569,503.00
Table 5.2 Building
 Building has depreciable life of 50 years and has no salvage value.
 Building is depreciated through straight line method.
Note 5 – Facilities and Equipment

Cost 672,429.95 672,429.95 672,429.95 672,429.95 672,429.95
Less:
Accumulated 67,243.00 134,486.00 201,729.00 268,972.00 336,215.00
Depreciation
Total P 605,186.95 P 537,943.95 P 470,700.95 P 403,457.95 P336,214.95
Table 5.3 Facilities and Equipment
 All Facilities and Equipment have depreciable life of 10 years

with no salvage value.
 All Facilities and Equipment are depreciated through
straight line method.
Note 6- Loan Amortization Schedule
Amortization Schedule for ten (10) years
Period Beginning Annual Interest Principal Remaining

Amount Payment Expense payment Balance
(1) (2) (3)=.03x (1) (4)=(2)-(3) (5)=1-(4)
P7,500,000.00
1 P7,500,000.0 P975,000.00 P225,500.00 P750,000.00 6,750,000.00
0
2 6,750,000.00 952,500.00 202500.00 750,000.00 6,000,000.00
3 6,000,000.00 930,000.00 180000.00 750,000.00 5,250,000.00
4 5,250,000.00 907,500.00 157500.00 750,000.00 4,500,000.00
61
5 4,500,000.00 885,000.00 135000.00 750,000.00 3,750,000.00

6 3,750,000.00 862,500.00 112500.00 750,000.00 3,000,000.00
7 3,000,000.00 840,000.00 90000.00 750,000.00 2,250,000.00
8 2,250,000.00 817,500.00 67500.00 750,000.00 1,500,000.00
9 1,500,000.00 795,000.00 45000.00 750,000.00 750,000.00
10 750,000.00 772,500.00 22500.00 750,000.00 0
Total 8,738,000.0 1,238,000.00 7,500,000.00
0
Table 5.4 Amortization Schedule
 Interest expense is derived by multiplying the beginning amount by

3%.
 Principal payment is derived by dividing the loan amount of

P7,500,000 with the term of the loan which is 10 years.
 Annual payment is derived by adding the interest expense and

principal payment of the period.
NOTE 7: PARTNERS’ EQUITY
The MAC FIRM is composed of 12 capitalist partners. Two of the

partners invested land as capital with fair market value of
Php1,200,000.00 and Php1,000,000.00, while ten (10) partners invested
cash of Php1,000,000.00 each as initial capital for the total of
Php12,200,000 at the initiation of the business. One of the partners will
act as general manager with 5% bonus allowance on net income before
bonus and tax.
The partnership shall distribute the income from the operation

proportionately in ratio with their initial contributed capital/investment.
There’s no additional investment from the partners for the following
years. All partners are only allowed to withdraw a maximum amount of P
50,000.00 each in the first five years of the operation of the business.
62
This is to fulfill the entity’s commitment that within 20 years, the

contributed initial capital of the partners shall be return.
YEAR 1 net income=390,009.87

ADD:
PARTNERS BEGINNING Bonus SHARE IN TOTAL LESS:
CAPITAL (5%) NET DRAWINGS
INCOME/
LOSS
ABDULLAH, A. P 1000000.00 31,968.02 1,031,968.02 50,000.00
ABDULLAH, N. 1000000.00 31,968.02 1,031,968.02 50,000.00
BUGTAY, L. 1000000.00 31,968.02 1,031,968.02 50,000.00
CADABOK, S. 1000000.00 31,968.02 1,031,968.02 50,000.00
HADJI NOOR, N. 1000000.00 31,968.02 1,031,968.02 50,000.00
JAMIL,ESMAIL JR. 1000000.00 31,968.02 1,031,968.02 50,000.00
LONGAKIT, M. 1000000.00 31,968.02 1,031,968.02 50,000.00
LUCMAN, A. 1000000.00 31,968.02 1,031,968.02 50,000.00
MACARAMPAT, S. 1000000.00 31,968.02 1,031,968.02 50,000.00

.AIRAH
MACARAMPAT, 1000000.00 29,324.05 31,968.02 1,061,292.07 50,000.00
S.AYNA
OMAR, N. 1200000.00 38,361.62 1,238,361.62 50,000.00
TANAEL, E. 1000000.00 31,968.02 1,031,968.02 50,000.00
TOTAL 12,200,000.00 29,324.05 390,009.84 12,619,333.89 600,000.00
Table 5.6 Equity Year 1
YEAR 2 net income=509,390.67

ADD:
PARTNERS BEGINNING Bonus SHARE IN TOTAL LESS: ENDING CA
63
CAPITAL (5%) NET INCOME/ DRAWINGS

LOSS
ABDULLAH, A. P 981,968.02 P41,753.33 P1,023,721.35 P50,000.00 P 973,
ABDULLAH, N. 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
BUGTAY, L. 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
CADABOK, S. 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
HADJI NOOR, N. 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
JAMIL,ESMAIL 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
JR.
LONGAKIT, M. 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
LUCMAN, A. 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
MACARAMPAT, S. 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
.AIRAH
MACARAMPAT, 1,011,292.07 38,300.05 41,753.33 1,091,345.45 50,000.00 1,041,
S.AYNA
OMAR, N. 1,188,361.62 50,104 1,238,465.62 50,000.00 1,188,
TANAEL, E. 981,968.02 41,753.33 1,023,721.35 50,000.00 973,
TOTAL P12,019,333.89 P38,300.05 P509,390.63 P12,567,024.57 P600,000.00 P11,967,0
YEAR 3 Net Income = 583,870.6

ADD:
INCOME/
LOSS
ABDULLAH, A. P 973,721.35 P47,858.25 P1,021,579.60 P50,000.00 P 971
ABDULLAH, N. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
BUGTAY, L. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
CADABOK, S. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
HADJI NOOR, N. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
JAMIL,ESMAIL JR. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
LONGAKIT, M. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
LUCMAN, A. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
MACARAMPAT, S. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
AIRAH
MACARAMPAT, 1,041,345.45 43,900.05 47,858.25 1,133,103.75 50,000.00 1,083
S.AYNA
OMAR, N. 1,188,465.62 57,429.90 1,245,895.52 50,000.00 1,195
TANAEL, E. 973,721.35 47,858.25 1,021,579.60 50,000.00 971
64
TOTAL P11,967,024.57 43,900.05 583,870.65 12,594,795.27 600,000.00 P11,994,
YEAR 4 Net Income=727,324.47

ADD:
INCOME/
LOSS
ABDULLAH, A. P 971,579.60 P59,616.76 P1,031,196.36 P50,000.00 P 981
ABDULLAH, N. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
BUGTAY, L. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
CADABOK, S. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
HADJI NOOR, N. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
JAMIL,ESMAIL JR. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
LONGAKIT, M. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
LUCMAN, A. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
MACARAMPAT, S. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
AIRAH
MACARAMPAT, 1,083,103.75 54,686.05 59,616.76 1,197,406.56 50,000.00 1,147
S.AYNA
OMAR, N. 1,195,895.52 71,540.11 1,267,435.63 50,000.00 1,217
TANAEL, E. 971,579.60 59,616.76 1,031,196.36 50,000.00 981
TOTAL 11,994,795.27 54,686.05 727,324.47 12,776,805.79 600,000.00 P12,176,
YEAR 5 Net Income=743,616.97

ADD:
PARTNERS BEGINNING Bonus SHARE IN TOTAL LESS:
INCOME/
LOSS
ABDULLAH, A. P 981,196.36 P60,952.21 P1,042,148.57 P50,000.00
ABDULLAH, N. 981,196.36 60,952.21 1,042,148.57 50,000.00

65
BUGTAY, L. 981,196.36 60,952.21 1,042,148.57 50,000.00
CADABOK, S. 981,196.36 60,952.21 1,042,148.57 50,000.00
HADJI NOOR, N. 981,196.36 60,952.21 1,042,148.57 50,000.00
JAMIL,ESMAIL JR. 981,196.36 60,952.21 1,042,148.57 50,000.00
LONGAKIT, M. 981,196.36 60,952.21 1,042,148.57 50,000.00
LUCMAN, A. 981,196.36 60,952.21 1,042,148.57 50,000.00
MACARAMPAT, 981,196.36 60,952.21 1,042,148.57 50,000.00

S..AIRAH
MACARAMPAT, 1,147,406.56 55,911.05 60,952.21 1,264,269.82 50,000.00

S.AYNA
OMAR, N. 1,217,435.63 73,142.65 1,290,578.28 50,000.00
TANAEL, E. 981,196.36 60,952.21 1,042,148.57 50,000.00

TOTAL P12,176,805.79 P55,911.05 P743,616.96 P12,976,333.80 P600.000.00

Electricity P144,000.00 P145,500.00 P 165,400 P 178,400.00 P178,400.00
Water 36,000.00 37,500.00 43,0000 47,280.00 47,280.00
Telephone 14,000.00 14,000.00 14,0000 14,000.00 14,000.00
and Internet
Total P194,000.00 P196,000.00 P222,400.00 P239,680.00 P 239,680.00
Note 8: Utilities Expense
Note 9: Depreciation Expense
Year 1- Year 5
Building P 212,656.00
Facilities and Equipment 67,243.00
Total P 279,899.00
 Building P10,632,783/50yrs = 212,656.00

66
 Facilities and Equipment P 672,429.95/10yrs = P67,243.00
Note 10: Salaries Expense
Year 1- Year 5
Manager (P 12,000/Month) P 144,000.00
Maintenance (P10,000/Month) 120,000.00
Janitor 1 (P 4,500/Month) 54,000.00
Janitor 2 (P 4,500/Month) 54,000.00
Total P 372,000.00
Note 11- Miscellaneous Expenses

Advertising P 10,000.00 P 3000.00 P2,000.00 P5,000.00 P3,000.00
Expense
Maintenance 7,000.00 5,000.00 10,000.00 3,000.00 3,000.00
Expense
Supplies 3,000.00 5,000.00 4,5000.00 2,000.00 2,000.00
Total P20,000.00 P13,000.00 P16,500.00 P10,000.00 P8,000.00

67
E. Financial Ratio Analysis
The following tables below present the financial statements

analysis using trend/horizontal technique or method. Such method used
to show and evaluate the changes in the amount of corresponding
financial statement items over a period of time.
Comparative Financial Position Statement

For Years Ended 31, 2020 and 2019
ASSETS Increase or Decrease

Current Asset 2020 2019 Amount Percent
Cash P 3,781,766.00 4,304,176.00 -522,410.00 -12.14%
Total Current 3,781,766.00 4,304,176.00 -522,410.00 -12.14%
Noncurrent Assets
Land 3,652,500.00 3,652,500.00 0.00 0.00%
Building, net 9,994,815.00 10,207,471.00 -212,656.00 -2.08%
Facilities and 537,944.00 605,187.00 -67,243.00 -11.11%
Equipment, net
Total noncurrent assets 14,185,259.00 14,465,158.00 -279,899.00 -1.93%
Total Assets 17,967,025.00 18,769,334.00 -802,309.00 -4.27%
LIABILITIES AND
EQUITY
LIABILITIES
Current Liabilities Year 2 Year 1
Loans Payable-current 750,000.00 750,000.00 0.00 0.00%
portion
Total current liabilities 750,000.00 750,000.00 0.00 0.00%
Noncurrent liability
Loans Payable 5,250,000.00 6,000,000.00 -750,000.00 -12.50%
Total Noncurrent 5,250,000.00 6,000,000.00 -750,000.00 -12.50%
Total Liabilities 6,000,000.00 6,750,000.00 -750,000.00 -11.11%
EQUITY
68
Partners’ Capital 11,967,024.57 12,019,334 -52,309.32 -0.44%

TOTAL LIABILITY AND P 17,967,025.00. 18,769,334 -802,309.32 -4.27%
EQUITY


Cash P 3,339,435.00 3,781,766.00 -442,331.00 -11.70%
Total Current 3,339,435.00 3,781,766.00 -442,331.00 -11.70%
Noncurrent Assets .
Land 3,652,500.00 3,652,500.00 0.00 0.00%
Building, net 9,782,159.00 9,994,815.00 -212,656.00 -2.13%
Facilities and 470,701.00 537,944.00 -67,243.00 -12.50%
Equipment, net
Total noncurrent 13,905,360.00 14,185,259.00 -279,899.00 -1.97%
assets
Total Assets P17,244,795.0 17,967,025.0 -722,230.00 -4.02%
0 0
LIABILITIES AND
EQUITY
LIABILITIES
Loans Payable- 750,000.00 750,000.00 0.00 0.00%
current portion
Total current 750,000.00 750,000.00 0.00 0.00%
liabilities
Loans Payable 4,500,000.00 5,250,000.00 -750,000.00 -14.29%
EQUITY
Partners’ Capital 11,994,795.27 11967024.57 27,770.70 0.23%

TOTAL LIABILITY P17,244,795.0 17,967,025.0 -722,229.30 -4.02%
AND EQUITY 0 0
69


Cash P 3,051,346.00 3,339,435.00 -288,089.00 -8.63%
Total Current 3,051,346.00 3,339,435.00 -288,089.00 -8.63%
Noncurrent Assets .
Land 3,652,500.00 3,652,500.00 0.00 0.00%
Building, net 9,569,503.00 9,782,159.00 -212,656.00 -2.17%
Facilities and 403,457.00 470,701.00 -67,244.00 -14.29%
Equipment, net
assets
Total Assets P16,676,806.00 17,244,795.00 -567,989.00 -3.29%
LIABILITIES AND
EQUITY
LIABILITIES
Loans Payable- 750,000.00 750,000.00 0.00 0.00%
current portion
Total current 750,000.00 750,000.00 0.00 0.00%
liabilities
Noncurrent
liability
Loans Payable 3,750,000.00 4,500,000.00 -750,000.00 -16.67%
CAPITAL EQUITY .
Partners’ Capital 12,176,805.79 11,994,795.27 182,010.52 1.52%
TOTAL LIABILITY P16,676,806.00 17,244,795.00 -567,989.48 -3.29%
AND EQUITY
70


Cash P2,759,505.00 3,051,346.00 -291,841.00 -9.56%
Total Current 2,759,505.00 3,051,346.00 -291,841.00 -9.56%
Noncurrent Assets
Land 3,652,500.00 3,652,500.00 0.00 0.00%
Building, net 9,378,114.00 9,569,503.00 -191,388.70 -2.00%
Facilities and 336,215.00 403,457.00 -67,242.00 -16.67%
Equipment, net
assets
Total Assets P16,126,334.00 16,676,806.00 -550,472.00 -3.30%
LIABILITIES AND
EQUITY
LIABILITIES
Loans Payable-current 750,000.00 750,000.00 0.00 0.00%
portion
Total current 750,000.00 750,000.00 0.00 0.00%
liabilities
Loans Payable 3,000,000.00 3,750,000.00 -750,000.00 -20.00%
Total Liabilities 3,750,000.00 4,500,000.00 -750,000.00
CAPITAL EQUITY
Partners’ Capital 12,376,333.80 12,176,805.79 199,528.01 1.64%
TOTAL LIABILITY AND P16,126,334.00 16,676,806.00 -550,471.99 -3.30%
EQUITY
71
Comparative Income Statement

Increase or Decrease
Account 2020 2019
Amount Percent
Rental Income - Bed Spacer P1,512,000.00 P1,416,000.00 96,000 6.8%

Other Income – Laudry 159,000.00 150,000.00 9,000 6.0%
Service
Other Income-Min Gym 176,400.00 165,600.00 10,800 6.5%
Gross Income 1,847,400.00 1,731,600.00 115,800 6.7%
Less: Operating Expenses 0
Salaries 372,000.00 372,000.00 0 0.0%
Interest 202,500.00 225,500.00 -23,000 -10.2%
Insurance 18,000.00 18,000.00 0 0.0%
Utilities 196,000.00. 194,000.00 2,000 1.0%
Depreciation-bldg 212,656.00 212,656.00 0 0.0%
Depreciation-Fixed Asset 67,243.00 67,243.00 0 0.0%
Miscellaneous 13,000.00 20,000.00 -7,000 -35.0%
Pre-Operating 35,720.00 -35,720 -100.0%
Total Operating Expense 1,081,399.00 1,145,119.00 -63,720 -5.6%
Net Income 766,001.00 586,481.00 179,520 30.6%
5%Bonus 38,300.05 29,324.05. 8,976 30.6%
Net Income before Tax 727,700.95 557,156.9 170,544 30.6%
Tax 30% 218,310.29 167,147.09 51,163 30.6%
Net Income After Tax P 509,390.67 390,009.87 119,381 30.6%
72

Increase or
Account 2021 2020 Decrease
Amount Percent
Rental Income - Bed Spacer P1,608,000.00 1,512,000.00 96,000 6.3%
Other Income – Laundry Service 168,000.00 159,000.00 9,000 5.7%
Gross Income 1,966,800.00 1,847,400.00 119,400 6.5%
Salaries 372,000.00 372,000.00 0 0.0%
Interest 180,000.00 202,500.00 -22,500 -11.1%
Insurance 18,000.00 18,000.00 0 0.0%
Utilities 222,400.00 196,000.00 26,400 13.5%
Miscellaneous 16,500.00 13,000.00 3,500 26.9%
Pre-Operating 0
Total Operating Expense 1,088,799.00 1,081,399.00 7,400 0.7%
Net Income 878,001.00 766,001.00 112,000 14.6%
5%Bonus 43,900.05 38,300.05 5,600 14.6%
Net Income before Tax 834,100.95 727,700.95 106,400 14.6%
Tax 30% 250,230.29 218,310.29 31,920 14.6%
Net Income After Tax P 583,870.67 P 509,390.67 74,480 14.6%
73

Account 2022 2021
Amount Percent
Rental Income - Bed Spacer P1,776,000.0 1,608,000.00 168,000 10.4%
0
Other Income – Laudry Service 186,000.00 168,000.00 18,000 10.7%
Gross Income 2,170,800.00 1,966,800.00 204,000 10.4%
Salaries 372,000.00 372,000.00 0 0.0%
Interest 157,500.00 180,000.00 -22,500 -12.5%
Insurance 18,000.00 18,000.00 0 0.0%
Utilities 239,680.00 222,400.00 17,280 7.8%
Miscellaneous 10,000.00 16,500.00 -6,500 -39.4%
Pre-Operating 0
Net Income 1,093,721.00 878,001.00 215,720 24.6%
5%Bonus 54,686.05 43,900.05 10,786 24.6%
Net Income before Tax 1,039,034.95 834,100.95 204,934 24.6%
Tax 30% 311,710.49 250,230.29 61,480 24.6%
Net Income After Tax P727,324.47 583,870.67 143,454 24.6%
74

Account 2023 2022
Amount Percent
Rental Income - Bed Spacer P1,776,000.0 1,776,000.00 0 0.0%
0
Other Income – Laudry Service 186,000.00 186,000.00 0 0.0%
Other Income-Min Gym 208,800.00 208,800.00 0 0.0%
Gross Income 2,170,800.00 2,170,800.0 0 0.0%
0
Salaries 372,000.00 372,000.00 0 0.0%
Interest 135,000.00 157,500.00 -22,500 -14.3%
Insurance 18,000.00 18,000.00 0 0.0%
Utilities 239,680.00 239,680.00 0 0.0%
Miscellaneous 8,000.00 10,000.00 -2,000 -20.0%
Pre-Operating 0
0
Net Income 1,118,221.00 1,093,721.0 24,500 2.2%
0
5%Bonus 55,911.05 54,686.05 1,225 2.2%
Net Income before Tax 1,062,309.95 1,039,034.95 23,275 2.2%
Tax 30% 318,692.99 311,710.49 6,983 2.2%
Net Income After Tax P743,616.97 727,324.47 16,293 2.2%
75
Horizontal Analysis Interpretation
A. Statement of Financial Position
 Year 2019 and 2020
The entity has been able to pay 12.50% of its long term loan
amounting to P750,000.00 . Although there’s a decrease in equity of
0.44% amounting to P52,309.32 it is resulted from the partners
withdrawal of P50,000 each for a total of P600,000, as a return of
capital, it’s the entity pledge to payback all it’s financing as soon as
possible if the circumstances permit so.
 Year 2020 and 2021

As to this date, the entity has paid 14.29% of its liability. There was
also an increase of 0.23% in its equity regardless of the partners
withdrawal of P50,000 annually.
 Year 2021 and 2022
There’s a decrease of 16.67% of the entity’s total liability, it means

that the entity is capable of paying its due. By this year end, the entity
recorded an increase of 1.52% of its equity. It is withstanding that the
partnership contracted to allow all its partners to withdraw P50,000 each
annually for a total of P600,000.
 Year 2022 and 2023
The entity has now paid 20% of its liability. It means that the entity
never failed to pay its obligation. Interestingly, the entity was able to
76
generate an increase of 1.64% to it,s equity this year, which s .12%

higher than the previous year, despite of again of annual withdrawals of
P600,000 of cash.
B. Income Statement
 Year 2019 and 2020

In this year, the operating expenses decreases by 5.6%. On the other
hand, it has an increase in gross income of 6.7% resulting of 30.6%
increase to its net income, this is a result of an increase of 5% of its
occupants this year.
 Year 2020 and 2021

From gross income rate of 6.7% last year it was decrease by 0.2% this
year. But still, its a positive increase of 6.5% on its gross income.
Although, the operating expense has increased to 0.7% from -5.6% last
year, still that company was able to generate 14.6% increase to its net
income.
 Year 2021 and 2022

This year the entity is in its full occupancy rate and the entity was
able to generate an increase to its net income of 24.6% due to the
increase of 10.4% on its gross income and lesser operating expense of
-1.1% this year compare to the last year with 0.7%
 Year 2022 and 2023
Still, this year the company has maintained its occupancy rate, and
was able to minimize its operating expenses resulted to a decrease of
2.3%. The entity was also able to sustain a 2.2% interest in net income.
77
CHAPTER VI
SOCIO-ECONOMIC ASPECT
This chapter presents information about the socio-economic study

of the proposed business as well as its impact to the society. The
proposed business will be managed to profit and will provide social and
economic benefits to the customers, employees, investors, creditors the
community and to the country as a whole,
A. Socio-economic
The proposed Gentlemen’s Hub: All-Men Dormitory aims to help

and accommodate students who want to live near the school premises
that are living from different places and also those people who needs
to live near their work place and those who have other necessary
needs on the area. This proposed business also aims to bring
satisfaction to the customers or boarders, who are looking for a
dormitory that is equipped with complete amenities and facilities that
would cater their needs at the most affordable cost and just price.
A.1 Contribution to the Philippine Economy
The partnership considers the improvement in the

community such as to provide employment and income. The business
owners will also pay their tax obligations in the Bureau of Internal
Revenue as provided by law. The Gentlemen's Hub: All-men dormitory
will be maintaining books and all other source documents for tax
78
purposes to be paid in the government to help the government generate

funds for the improvement of public service and government projects in
the Philippines.
The following requirements should be taken into consideration:
 Registration with the office of the SEC as to form of ownership.

 Registration with the Department of Trade and Industry for
protection and legal use of business name.
 Registration of business permits from the City Mayor’s Office.
 Business clearance from the place where the business
is to be located.
 Health and sanitary permit from the City Health Office.
 CEDULA
 Fire Safety Certificate
 Paid licences and fees
 Safety inspection report from the Engineer’s Office
 SSS and PHILHEALTH clearance
With the data posted above, the partnership is well aware of its
duties and responsibilities as an income-generating entity to pay all its
obligations and dues.
A.2 Contribution to the Students and the University
The Gentlemen’s Hub will offer a high quality service and

facilities that is beneficial to its occupants’ or student’s well-being to be
specific. as a whole. It is the intention of the owners to equipped the
dormitory with complete amenities that are best suited to the needs of
the students. By providing their needs as a place like home it is then
expected that students will perform better in school as an effect the
79
university will generate a well-grounded students, competent and

intelligent, with moral and ethical values.
Having competitive business outlook and securing the safety its

every occupants living in The Gentlemen’s Hub will help the university be
less worried of the securities of its students.
A.3 Contribution to the Society
The proposed business will contribute to the advancement of

the city by providing jobs to its constituents and by contributing wealth
to it. With properly sanitized and well-maintained facilities, the city
would actually benefit from the addition of a new business in its vicinity.
In general, the partners believe that the proposed business will not
only the business owners or investors, but to the whole society as well.

Feasibility Study On Establishing An All-Men Dormitory In Iligan City

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1

THE GENTLEMEN’S HUB

CHAPTER 1: EXECUTIVE SUMMARY

CHAPTER 2: MARKETING ASPECTS

CHAPTER 3: TECHNICAL ASPECTS

F. Project Cost Estimate……………………………………….

CHAPTER 4: ORGANIZATIONAL ASPECTS

CHAPTER 5: FINANCIAL ASPECTS

A. Total Project Cost…………………………………………..

CHAPTER 6: SOCO-ECONOMIC ASPECT

Nowadays the population of the Philippines has increased

Living in a dormitory creates an experience and moments in an

In conducting this study let us have an overview of the preferences

Metropolitan, Manila that usually targeting those students who are

Dormitory or dorm is the popular term used by students to refer to

Another importance of the need to conduct this study is to fill in

degrees in MSU-IIT. Unfortunately, because of its stiff competition and

Another concern of the researchers is the environment or the

The main objective of the researchers is to inform the reader and

This study focus about an all-men dormitory project, as well as its

Statement of the Problem

As there is an increase in population, development and growth in

The researchers are to determine and analyze the feasibility of

1. Is there a demand for the proposed project?

Objective of the Study

The primary objective of this study is to determine the feasibility

Project Name/ Title

The proposed project will be named as “The Gentlemen’s Hub”. It

undergraduates, graduate and postgraduate; reviewees and reviewers

The Gentlemen’s Hub originate its name from the word

The Gentlemen’s Hub will be constructed on Brgy. Tibanga

The site is conveniently located within Iligan city, along

Overall, the area can be considered as very ideal in an academic

residents easy access to transportation to commercial areas for when

Brief Description of the Project

Nature or Kind of Business

The Gentlemen’s Hub is a service type of business that is

Its source of revenue would be primarily generated from bed space

To be globally recognized as an excellent development hub of each

To provide excellent quality service designed to contribute to the

To create a well-designed housing equipped with complete

The Gentlemen’s Hub shall:

1.) Provides complete facilities and amenities for everyone needs.

3.) Nurtures the camaraderie, families and impart the essence of a

This feasibility study is conducted in order to find out if it is viable to

Furthermore, this chapter discusses the identification of its target

The main goal of The Gentlemen’s Hub is to deliver a highly equipped

Demand Data and Computation

TABLE 1: TOTAL NUMBER OF MSU IIT MALE STUDENTS FOR A GIVEN

Table 2: Growth Rate Computation

Previous Year x 100 %

5027 x 100 % = 4.16%

5236 x 100 % = 3.93%

5442 x 100 % = 3.44%

5629 x 100 % = 4.07%

Table 3: MALE GRADUATES FROM MSU-IIT PER YEAR ACCORDING TO THEIR

Region 2012 2013 2014 2015 2016

Iligan City 172 219 266 290 319

TOTAL 384 437 544 623 678

Table 4: ESTIMATED PERCENTAGE (%) OF THE TOTAL NUMBER OF MSU IIT

Outside of Iligan 212 218 278 333 359

TOTAL ( “Z” ) 384 437 544 623 678

School Year 1st Sem 2nd Sem Average % Percentage Average