Perpetual Candle Holder

A Feasibility Study Presented in the Faculty of

the Program of Accountancy of

Pasig Catholic College

In Partial Fulfillment of the Requirements for the Degree

of Bachelor of Science in Accountancy

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Submitted by:
Serrano, Ellyza Coleen R.
Pascual, Amabelle D.

April 2019
Chapter 1
Summary of the Project
A. Introduction
Candles have been utilized for light and to enlighten man's festivals for over 5,000 years, yet little is
thought about their source. Usually composed that the primary candles were produced by the Ancient
Egyptians, who utilized rush lights or lights made by dousing the pointed center of reeds in softened creature
fat. Be that as it may, the rush lights had no wick like a genuine light.

Nowadays, people still use candle lights for celebrations and emergency purposes.  The candle was
usually single use and he consumption of it is still high so the company come up with the idea of how to
extend the life of the candle in an effective way. The “perpetual candle holder”, it is a self-regenerative wax
molder of candle that comprises of a tubular stem that pools and re-molds the liquefying wax of the flame it is
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consuming into another light. As the wax aggregates inside the stem, it solidifies around a segment of wick
going through the middle.

The Perpetual Candle Holder is a candle holder which gathers the liquefying wax to shape another light.
As the flame consumes, softening wax dribbles from the light and amasses inside the straightforward stem
where a length of wick is midway found. When full, the new formed light can be expelled from the focal area to
begin the procedure once more. Since a lot of people use candle for occasions “perpetual candle holder” is
perfectly fit for it.

B. Overview of the Project

Perpetual Candle Holder Company Ltd. intends to provide an endless creation of candles that can
accumulate less consumption of candles, to spend less and to prevent fire. It conducts a product that can
reuse candles without buying much and also preventing fire. The proponents also intends to help people to
clean less because of the leakage of the wax on the floor or in the kitchen counter. Perpetual Candle Holder
Company Ltd. also offers a unique, affordable and long lasting product.

The proponents’ type of company is Limited partnership because it has the advantages that do not exist
in a general partnership. Each limited partner has liability for the debts of the business limited to the extent
of their investment in the company. Should the business become liable for some debt or legal proceeding, the
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limited partners' personal assets are not at risk like those in a general partnership. Unlike general
partnerships, the limited partners have no management authority or input toward the operation of the
company; this is usually left to a single partner who is classified as a general partner, and is responsible for
the debts and liabilities of the company.
Many people nowadays was used to consume more not knowing that they also spend a lot of their money
buying products all over again. So, the proponents able to come up with an idea that people doesn’t need to
buy candles every once and a while when they are fully consumed. The wax that become waste will be
recycled, reused and can turn into a brand new candle again.

The Perpetual Candle Holder Company Ltd. use readily available materials such as PVC that molds the
candle wax, wood with a stand that holds the candle and its foundation, syringe to push recycled wax and a
wick. The company makes sure that the materials use on making its product are recyclable and low cost to be
more locally available.

C. Logo of the Business

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Figure 1.1
D. Description
A logo is a focal element to promote public identification of a business. Now, you might think that this is
synonymous to a trademark or brand. It symbolizes that can easily describe what business you are in. It
usually the first one to capture the eyes of the consumers. As the company's plan to introduce an elucidating,
striking and distinguishing image that won't effortlessly leave on the consumer’s mind.
The proponents chose the appropriate symbol to represent its purpose and its main product. The
company's central picture is the candle. So the company decided to put a candle in the middle to represent
the company’s main product and the proponents put a violet hue to add a dash of spiritual awareness,
wisdom and tranquility. The proponents also put a glow in the logo to represent the freedom, the warmth and
the positivity it give. The proponents also want to make the people think that candle is not just for spiritual or
ritual purposes but also for emergency lighting during electrical power failures and to set a soft, warm, or
romantic ambiance to the surroundings. The infinity sign in the middle symbolizes the main point or the
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actual objective of the proponents. The infinity sign is the endless use of a candle which is the unique product
of the company. The pink color symbolizes to have a young, loose, an up to date and upbeat brand logo
atmosphere.

E. Location of the Business

Figure 1.2
147 Market Ave, Barangay San Miguel, Pasig City
F. Description
Pasig is called as The Green City for being considered as one of the most outstanding, safe and
environmental friendly City. This city is implementing waste management. Pasig City has the best 10 funeral
services and cemeteries which the proponents will use to be one of the target market.
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The proponents choose the business location is at Market Ave., Pasig City. The nearby shops are Big
Star Events & Party Needs, 7/11, M Lhuiller, and Perfume Deals and Steals. The nearest households are
Camella Ellisande and Ceritos Residences. It can be easily seen because it is located in the ground floor of a
building. It is also near schools like San Miguel Elementary School, Pasig Catholic College and Arellano
University. The proponents also wanted to get several of opinion to different people around Barangay San
Miguel, Barangay Palatiw and Barangay Caniogan.
G. Objectives
Vision
Perpetual Candle Holder Company Ltd. is an eco-friendly company that envisions an environmentally
conscious society with equitable access to resources. That lessen the consumption of candles and spending so
much. The Perpetual Candle Holder Company Ltd. participates in the waste management organization by
conducting a program that helps the community to be more eco and family-friendly.
Mission
To realize this vision, Perpetual Candle Holder Company Ltd. will become:
● Strives to bring about positive changes in communities through environmental conservation.
● An example to many people by being more economic and to offer a quality, relevant, and affordable
products that can lessen the expenses and consumption of candles;
● A developer to sustain the products that may help reap the benefits of reducing waste, lessen the
pollution by means of providing programs that may solve the problems in pollution, help the people to use
the natural resources in more efficient way;
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● Consistent to adopt the practices and procedures, by helping and maintaining the environment and
ensures the safety of our employees and countrymen;
● Known for having an innovative management principles and to accept new challenges in the industry.

Project’s Long-Term Objectives

The proponents have agreed upon providing a set of long term objectives that determine greater goals
that the business yearns to achieve. The proponents expect the business in long term interval:

● To fully expand the business by establishing local branches;

● To be able to set up the business to more and consistent supplier and distributors outside Metro
Manila;
● To dominate the candle holder devices not just nationwide but also around the world;
● As the years passed by, the product gets improved and can also get a new idea for new candle holder
innovation.
Project’s Short-Term Objectives
The proponents have come up with a set of short term objectives mainly focusing on the organization’s
stability in the chosen industry and to be able to survive a year representing the initial starting time of the
business. The proponents expect the business short-term interval:

● To offer a recyclable, unique and affordable product;

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● Communicating the importance of eco – friendly candle;

● To catch up with bigger companies as the manufacturer of candle industry here in the Philippines;
● To increase profit on the chosen location of the business in able to survive within a year

H. Schedule of the Project

October 2019 November 2019 December 2019

W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4

Conception of
the Business

Investing of
Funds

Finding a
Location

Application for
Permits
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Remodeling
location

Buying of
Materials

Buying
Equipment &
Machinery

Hiring
Employees

Advertising the
Business

Grand Opening
Table 1.1

The project’s schedule marks the start of the business, during the operation a timetable is necessary.
The proponents believe that as they follow these schedule, they can able to open the business on time.
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On the first and second week of September, will be the conception of the business. The planning stage
consist of discussing the project, exchanging of ideas, investing of funds and finding a good business location.
At the end of the second week, the proponents should register permits in the city hall of its location. It will
take three weeks, the last two weeks of September and the first week of October for remodeling the location
including the buying of materials, equipment and machinery. The hiring and training of employees and the
advertising of the business will take two weeks in the month of October, up to the third week of November to
find the right employee. For the preparation of starting the company’s operation, which will be on the third
week of November and on the following weeks, will be the start of the project.
I. Initial Investment
PROPONENTS AMOUNT OF INVESTMENT
Ellyza Serrano ₱100,000.00
Amabelle Pascual ₱100,000.00
Total ₱200,000.00
Table 1.2
The proponent's aggregate capital is ₱100,000. The majority of the proponent's will contribute
₱200,000. The proponent's initial investment will be sufficient to manage the organization's beginning tasks
for the year. Their contributed capital will be sourced from the proponent's personal investment and the
proponent's parent’s savings to meet their coveted contributed capital.

J. Pre - Operating Expenses

CONTRIBUTED CAPITAL ₱200,000.00
Capital Expenditures:
Renovation of the office room ₱20,000.00
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Office Equipment 30,397.00

Production Equipment 8,460.00
Pre-operating Expense:
Rent Expense ₱10,000.00
Utilities Expense 3,199.00
Office Furniture & Fixtures 15,400.00
Office Supplies 1,780.00
Packaging Supplies 2,685.00
Salaries Expense 46,200.00
Allowance Expense 10,000.00
Uniform 3,500.00
Advertising 2,500.00
Taxes and Licenses 7,895.00
Total Pre-Operating Expense ₱162,016.00
Buffer fund ₱37,984.00
Working Capital ₱200,000.00
Table 1.3

The total contributed capital will be allocated among the components of the investment cost namely for
the renovation of the office room, ₱20,000 will be assumed used, ₱10,000 for the rental fee for a month,
₱7,895 will be used for the taxes and licenses of the business, ₱15,400 for the furniture and fixtures, ₱30,397
for the Office equipment which consist of the Computer costing to ₱10,000, 3 pieces of electric fan at ₱3,600,
a printer at ₱2,995, two fire units of extinguisher at ₱3,000 and a cash register at ₱10,802, and allowances for
every month for the Sales and Marketing Head, General manager is at ₱5,000 each, Production Head will be
at ₱15,000 and the two Laborers will have a basic salary of ₱520 and the monthly will be ₱15,600. Uniform
Allowance will also be given to the laborer and production head at ₱3,500.00. Utilities for electricity, water,
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telephone and internet for a month will be at ₱3,199 and the remaining balance of ₱37,984 will be the
company’s buffer fund for unexpected expenses.
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Chapter 2
Organization and Management Aspects
Organizational Chart

General Manager

Sales & Marketing

Production Head
Head

Laborer (2)

Figure 2.1
An Organizational Chart is a diagram that delineates and enterprise’s internal structure. It is the visual
representation that shows on how the organization is structured. An Organizational Chart exhibits the
distribution of the authority, responsibility and relationships between individuals within an organization. It
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also exhibits the way on how each individual communicates within the business. To add more it contributes
to the full harmony of employees in the organizational environment.
The General Manager is an executive who has overall responsibility for managing both the revenue and
cost elements of a company's income statement, known as profit & loss (P&L) responsibility. A general
manager usually oversees most or all of the firm's marketing and sales functions as well as the day-to-day
operations of the business. Frequently, the general manager is responsible for effective planning, delegating,
coordinating, staffing, organizing, and decision making to attain desirable profit making results for an
organization. The said position would be under the duty of an individual name Ellyza Serrano. The
proponents have decided the management to be divided into two departments namely: the Administrative and
Manufacturing Department.
The Sales & Marketing Head will be handled by Amabelle Pascual who will be responsible to control the
financial health of the organization such as controlling the company’s cost and expense. The proponents also
set sales goals & quotas, build a sales plan, analyze data, assign sales training and sales territories, mentor
the members of his/her sales team and are involved in the hiring and firing process. It also requires the
division to research where the company’s competitors are selling and where its customers say they want to
the business.
The Production Head would be on application and open for someone who is fitted in the position.
Production managers organize and control the production process in a factory. They ensure that products are
made to the right specifications and are ready on time and within budget. The department will include 2
labor.
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The Laborer will be under the Production Head. He will be in charge in creating the candle holder and
follows the instruction of the Production Head. He also must have the skills to create a better product to
increase the sales of the business.
B. Job Qualification and Job Description

General Manager
Job Qualifications
● Must have attained a degree in business - related field of study preferably in Accounting and Business
Management
● Must have at least 3-year work experience in any management function
● Must have proficient knowledge in computer literacy especially in MS Excel, MS Word, and MS Powerpoint
● Excellent communication interpersonal and influencing skills to build strong relationship foster
stakeholder engagement create new partnership business planning people and financial management
Job description
● Coordinating and managing the entire operation of the business
● Recruiting training and motivating staffs
● Responsible for increasing the business
● set policies, operations, create and maintain budgets, and coordinate with local management in the
company to evaluate employees, company performance and efficiencies
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Sales & Marketing Head

Job Qualification
● A graduate of any business-related field of study preferably in Marketing and Advertising
● Familiarity with financial reporting and forecast
● Four years accounting and bookkeeping experience
● Excellent communication (oral and written)
Job Description
● Set budgets and execute plans for department sales and product purchase
● Provide financial supports
● Maintain financial oversight and make recommendation on financial issues assigned business
●Maintain knowledge of marketing trends developments and best practices

Production Head
Job Qualifications
● 5+ years’ experience in manufacturing operations
● 2+ years’ experience in a supervisory capacity
● Bachelor’s degree required
● Excellent project management skills
Job Description
● planning and organizing production schedules
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● assessing project and resource requirements

● estimating, negotiating and agreeing budgets and timescales with clients and managers
● ensuring that health and safety regulations are met

Laborer
Job Qualifications
● Must be atleast high school Graduate
● Can work under pressure and tight deadlines
● Able to do multitasking

● Technically proficient in making candle holders

Job Description
● Responsible of the production process in the business
● Assigned in cleaning and maintaining the production area
● Operate hand tools small power tools and related safety equipment
● Assembles inputs into finished goods with efficiency and effectiveness
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C. List of Manpower
The business’ owners, that are assigned to function as, will do different jobs in terms of assigned tasks.
The owners will do their responsibilities to achieve the success and to develop the investment of the business.

Position Number of workers

General Manager 1

Sales & Marketing Head 1

Production Head 1

Laborer 2

Total 5
Table 2.1
Here shows the General manager who manages all the operation and decision making of the business and
will also help in all kinds of work in the business. Sales & Marketing Head will be based in the cashier and
finance the sales of the business. Production Manager will be handled by one person who will be monitoring the
whole production and lastly, the laborer who will create, assist and help in the production department.
D. Hiring Procedure
The hiring procedure help the company to find and assign a particular employee that perfectly fits in
the position.
Steps in Hiring
1. Application review
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The Manager will be reading each application that will be receive to determine whether the candidate
possess the skills, education, experience or other qualifications needed for the job. The Manager will then
separate those candidates into who will be interviewed and who will be retained on file for a period of time.
2. Test candidates
The general manager will take the next step and generally involves testing candidates for job skills or
knowledge to determine whether the candidate is qualified for the position. Tests might include personality
tests, skills tests and physical tests. Once the manager receives the result of the tests, he will narrow down
the selection to fewer candidates.
3. Interview
The manager will conduct an interviews with applicants to have the qualifications needed that fits in
the job The interview is all about personal hygiene, timeliness and manners. Once the interviews have been
completed, candidates will be selected on the basis of the results of the testing and the interview. This will
help the manager to further narrow the pool of candidates.
4. Background check
The company is conducting background checks to review candidates’ criminal record, to verify
employment history and eligibility, and to run credit checks. Some organizations also check social media
accounts (Facebook, Twitter, etc.) to make sure potential employees are likely to represent the company in a
professional manner. Drug testing may also be warranted, depending on the nature of the job.
5. Selection and Job Offer
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Once a candidate has been selected for the position, his or her professional reference should be
contacted. Reference checks can verify candidates’ employment details including job performance, strengths
and weaknesses. In offering a job, it includes providing an offer letter stating the position’s salary, start date
and other terms and conditions of employment that are based on the agreement between the company and
the candidate. it should be clear that the candidate understands the terms of the offer. After the offer, the
candidate may agree and sign, initiate negotiations of turn down the offer.
6. Hiring
Once the candidate accepts the offer, he or she is hired. this kicks off a phase of filling out and filing
paperwork related to the employment including eligibility to work forks, tax withholding forms and company
specific forms.
7. Orientation
An orientation is a crucial step in the hiring process. This should involve making the new employee feel
welcome even before he or she officially joins the organization. preparing his or her workspace, providing
necessary access credentials for work applications and networks, and outlining an orientation and training
schedule can significantly speed up the new employee.
E. Company Policies
Company policies and procedures establish the rules of conduct within an organization, outlining the
responsibilities of both employees and employers. Company policies and procedures are in place to protect
the rights of workers as well as the business interests of employers. Depending on the needs of the
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organization, various policies and procedures establish rules regarding employee conduct, attendance, dress
code, privacy and other areas related to the terms and conditions of employment.
The Perpetual Candle Holder Company Ltd. is open everyday even on specific holidays from 9:30 AM -
6:30 PM. Employees must be in the store area around 10 - 20 minutes before the opening hour. Any person
who violates the company’s policy will be given a sanction, repeatedly doing this violation may lead to
termination, unless valid reason and fortuitous events are happened.
Here are the list of company policies of Perpetual Candle Holder Company Ltd.;
Employee Policies
1. Work Hours
● Hours of work starts from 9:15 A.M. and ends at 7:00 P.M.;
● Lunch break of one hour given to the employee;
● Working hours is strictly implemented. Failure to this will a penalty of salary deduction.
2. Conduct
● Neglect of duty;
● Immoral or indecent conduct;
● Being honest and loyal at the workplace;
● Respect for the individual;
● Violation of a safety rule or safety practice.
3. Breaks
● allowed to have paid 30 minutes break during each eight-hour shift;
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● must give consent to the manager before and after taking a break
Attendance Policies
1. Absent
● Forget to time in or time out is considered absent;
● Number of absences will have a corresponding salary deduction;
● Constant absences without a good reason will be fired.
2. Tardiness
An employee is deemed to be tardy when he/she:

● Fails to report for work at the assigned/scheduled work time;

● Takes an extended meal or break period without approval or consent;
● Leaves work prior to the end of assigned/scheduled work time without prior supervisory approval.
3. Overtime
● Being present at work prior to his/her schedule without consent/approval to the supervisor won’t have
overtime pay
Uniform Policies
1. All employees must be clean and well-groomed. Grooming styles dictated by religion and ethnicity aren’t
restricted.
2. All clothes must be work-appropriate. Clothes that are typical in workouts and outdoor activities aren’t
allowed.
a. For the General Manager, Sales & Marketing Head and Production Head:
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Official company polo - polo shirt with printed Perpetual Candle Holder Company Ltd. logo
(illustrated in Figure 2.2)
Pair of dark colored pants/slacks except jeans or light colored pants (should be avoided)
B. For the Laborer:
Official Company t-shirt - Black t-shirt with printed Perpetual Candle Holder Company Ltd.
logo (illustrated in Figure 2.3)
3. All clothes must project professionalism. Clothes that are too revealing or inappropriate aren’t allowed.
I.D. Policies
1. It is the policy of the Perpetual Candle Holder Company Ltd. that employees wear their ID card in a
visible manner at all times.
2. Employees must never allow another person, irrespective of whether they are also Perpetual Company
staff to use their card to enter Perpetual Company premises.
3. Employees who lose their ID cards should report this to the ID unit as soon as practicable and arrange
for a replacement card.
4. The laborer are required to bring extra shirts everyday.
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Male Uniform Female Uniform

Figure 2.2

Male Uniform Female Uniform

Figure 2.3

Front of I.D. Back I.D.

Figure 2.4
The figures shows the company’s uniform, on the top is for male and female Manager and Head. This
should be paired by slacks and black shoes for the manager and head. For the laborer, they must wear the
uniform paired by dark colored pants and rubber shoes. Also shows the company’s I.D. card that will be given
to each and every employee or staff.
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F. Employee Compensation Package

Compensation may include hourly wages or an annual salary, plus bonus payments, incentives and
benefits, such as group health care coverage, short-term disability insurance and contributions to a
retirement savings account. A total compensation package can have several components. An “employee
compensation plan” collectively refers to all the components in addition to the manner in which the
compensation is paid and for what purpose employees receive case bonuses, salary increases and incentives.

Position No. of
Daily Monthly Annual
worker

General Manager (Allowance) 1 - ₱5,000.00 ₱60,000.00

Sales & Marketing Head

1 - 5,000.00 60,000.00
(Allowance)

Production Head (Allowance) 1 - 15,000.00 180,000.00

Laborer 2 ₱1040.00 31,200.00 374,400.00

Total 5 ₱1040.00 ₱52,600.00 ₱674,400.00

Table 2.2
Table 2.2 shows the salary of the employees. The General Manager will receive ₱5,000.00 as monthly
allowance. The Sales and Marketing Head will receive ₱5,000.00 as monthly allowance. Production Head will
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receive ₱15,000.00 a month because he will decide for the decoration and functions of our product, and the
laborers will receive ₱520.00 as their daily allowances. The total salaries for the month is ₱52,600.00.
G. Employee Benefits
Employee benefits are integral to the goals of your small business because they promote loyalty and can
save you money and time. As your business grows, the level of employee benefits you offer helps you recruit,
manage and retain employees. Additionally, the employee benefits you provide can help determine the quality
of employees you’ll be able to hire and keep.
Here are the employee benefits offered by Perpetual Company Ltd.;
● Overtime pay
The employee who renders overtime will be given additional compensation equivalent to his regular
wage plus at least 25% premium.
Overtime pay for holiday or rest day shall be paid an additional compensation from the rate of the first eight
hours on a holiday or rest day plus at least 30%.
On a Special Non-Working day, or rest day, an additional compensation of 30% premium will be paid in
addition to the rate of the first eight hours on holiday or rest day.
● Holiday Pay
The Labor Code requires the payment of an employee’s daily basic wage for all non-working regular
holidays.
● Uniform Allowance
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The uniform allowance is granted by the employer to employees who are required to wear special
clothing, such as uniforms, extra shirt and safety garments in the performance of their work. It is provided for
the Production Head and Laborer of the company.

● Sick Leave
The employee who suffers from illness or any medical condition without losing income pay. Six (6) days
is the maximum sick leave per year.
Fringe benefits that the company offers to each employee:
Position Manpower SSS Pag-ibig PhilHealth
Production Head 1 1,105.00 300.00 187.50
Laborer 1 1 1,141.80 312.00 187.50
Laborer 2 1 1,141.80 312.00 187.50
Total 3 3,388.60 924.00 562.50
Table 2.3
● Social Security System (SSS)
The SSS Employees’ Compensation (EC) program has been in place to help workers who encounter work-
related illnesses or injury resulting in disability or death. This includes compensation for: medical services,
appliances, and supplies in an accredited hospital; rehabilitation services, including medical, surgical, and
hospital treatment; and income cash benefit.
● Pag-IBIG
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This entitles employees to avail of a Housing Loan, Calamity Loan, and Multi-Purpose Loans that aim to
provide financial assistance to their needs.
● PhilHealth benefits
Provides financial assistance for inpatient and outpatient hospitalization, as well as Z Benefit Packages
for patients undergoing prolonged hospitalization and expensive treatments and suffering from Millennium
Development Goal (MDG)-related illnesses.

Chapter 3
Marketing Aspect
A. Product Description
The proponents named the business as Perpetual Candle Holder Company Ltd. Perpetual means
continuing or never-ending in the same way. Candle comes from the old English word which means be white
or glisten. Holder to make the candle not messy at all.
The proponents also decided to name the product as Perpetual Candle Holder because it compliments
the name and the candle holder that is not only giving us light and a never-ending cycle of creating a candle,
but also gives us the idea of the 3 R's. Reduce when saving money to buy more and more candles. Reuse and
recycle when the melted wax re-molds and becomes a candle again.
Perpetual Candle contains beeswax, palm wax and soy to make our surroundings to be smokeless. The
proponents decided to find a supplier that sells an all-organic candle, wherein the wax will be made of
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beeswax candle, in exchange of the usage of non-environment-friendly wax. To avoid any unnecessary
accident like house fire.
The molder is made of PVC pipe, which means polyvinyl chloride the world’s third-most widely produce
synthetic plastic polymer after polyethylene and polypropylene, so that the holder itself won’t be too
expensive and more economic but flexible and can be used easily. The proponents also decided to make the
handle into wood so that it won’t be hot when held. It can stand using a trivet pod.
As the flame consumes, softening wax dribbles from the light and amasses inside the straightforward
stem where a length of wick is midway found. When full, the new formed light can be expelled from the focal
area to begin the procedure once more. Since a lot of people use candle for occasions “perpetual candle
holder” is perfectly fit for it.

B. Market Description
Candles have been utilized for light and to enlighten man's festivals for over 5,000 years, yet little is
thought about their source. Usually composed that the primary candles were produced by the Ancient
Egyptians, who utilized rush lights or lights made by dousing the pointed center of reeds in softened creature
fat. Be that as it may, the rush lights had no wick like a genuine light.
The proponents should be able to find a feasible location to start the business with, so that the
business may gain profits. A candle holder business with a candle is suitable for places near a memorial
garden and funerals, and must be away from gasoline stations to prevent fire-causing situations.
Target Market
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The target market of the proponents are individuals who use candle holder for home decor, for
brownout or for spiritual purposes. The candle holder that the proponents created are made from wood and a
folding silicone trivet that gives an additional image and make it more attractive to the consumer. As for the
target location, the proponents decided to locate the business to 147 Market Ave, Barangay San Miguel, Pasig
City. The proponents chose online posters and flyers to advertise the product easily.
C. Demand
The demand will be based on the total population of the barangays: Caniogan, San Miguel and Palatiw,
not including the 12 years old and below. The proponents used Slovin’s formula to determine the total
number of respondents from each barangay.
Slovin’s Formula
n = N/1 + Ne2
Where: N = total population (ages 13 and above)
e = margin of error = 0.05
n = desired sample
n= _______50,090______
1+ (50,090)(0.05)2
n = __50,090__
126.25
n = 397 respondents
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To represent the number of respondents in each barangay, among the 397 carefully chosen
respondents, the proponents used a formula to identify the sample respondents that can represent the entire
population of the three barangays. As such, given the formula:
actual current population of person ages 13∧above
x 397 (respondents)
total actual population of personages 13∧above
For Barangay Caniogan,
12,208
x 397 = 97 respondents
50,0 90
For Barangay San Miguel,
22,809
x 397 = 181 respondents
50,090
For Barangay Palatiw,
15,073
x 397 = 119 respondents
50,090

Name of Barangay Population per No. of Respondents

Barangay
(Age 13 and above)

Caniogan 12,208 97

San Miguel 22,809 181

Palatiw 15,073 119

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Total Population 50,090 397

Table 3.1
The table shows the population per barangay that ages from 13 years old and above. Barangay
Caniogan has 12,208 population with 97 respondents, Barangay San Miguel has 22,809 population with 181
respondents and in Barangay Palatiw that has 15,073 population with 119 respondents. With a total
population of 50,090 and 397 total number of respondents.
Demographics:
Age:

Age: Frequency Percentage Rank

16 - 20 79 20% 3

21 - 25 155 39% 2

26 and above 163 41% 1

Total 397 100%

Table 3.2
The survey result shows that 20% are 16 - 20 years old, 39% are 21-25 years old and 41% are 26 years
old and above. The significance of the result shows that 26 years old and above has great number of potential
buyers, then to 21-25 years old individual and to the lowest number comes from 15-20 years old individuals.
Sex:

Sex Frequency Percentage Rank

 33

Female 206 52% 1

Male 191 48% 2

Total 397 100%

Table 3.3
The survey result shows that 52% are female and 48% are male. The significance of the result shows
that females are the main buyers of the proponent’s product. This also proves that the highest will come from
female individual and the lowest number will come from male individual.
Status:

Status Frequency Percentage Rank

Single 164 41% 2

Married 201 51% 1

Widower 32 8% 3

Total 397 100%

Table 3.4
The survey result shows that 41% are single, 51% are married and 8% are widower. The significance of
the result shows that married individuals are the ones that has the highest number, then the second comes
from single individuals and the last comes from those widower.
Profession:
 34

Profession Frequency Percentage Rank

Student 133 34% 2

Employee 220 55% 1

Others 44 11% 3

Total 397 100%

Table 3.5
The survey result shows that 34% are students, 55% are employed and 11% have other profession. The
significance of the result shows that individuals with other profession has the lowest number, then the
students tend to buy more than those with other profession and the highest number comes from the
employed.
Demand - Survey Study
Question #1
Do you use candle?

Choices Frequency Percentage Rank

Yes 394 99% 1

No 3 1% 2

Total 397 100%

Table 3.6
 35

The survey result shows that who answered Yes are 99% of the respondents and 1% answered No. The
significance of the result shows that many individuals are most likely using candles than those who do not.
Question #2
How often do you use it?

Choices Frequency Percentage Rank

Everyday 109 28% 3

Once A week 120 30% 2

During Brownout 168 42% 1

Total 397 100%

Table 3.7
The survey result shows that 28% are using candles everyday, 30% are using it once a week and 42%
are using candles only during brownout. The significance of the result shows that many individuals are only
using candles during brownout rather than using it once a week and everyday.
Question #3
Where do you use candle?

Choices Frequency Percentage Rank

Church 136 34% 2

Home 211 53% 1

 36

Funerals 50 13% 3

Total 397 100%

Table 3.8
The survey result shows that 34% are using candles in the church, 53% are using it at home and 13%
are using candles in the funerals. The significance of the result shows that many individuals are using
candles at home rather than using it in the funerals.

Church Frequency Percentage Rank

1 - 3 pcs. 62 46% 1

4 - 6 pcs. 59 43% 2

7 pcs. and above 15 11% 3

Total 136 100%

Table 3.9

Home Frequency Percentage Rank

1 - 3 pcs. 98 46% 1

4 - 6 pcs. 94 45% 2
 37

7 pcs. and above 19 9% 3

Total 211 100%

Table 3.10

Funerals Frequency Percentage Rank

1 - 3 pcs. 17 34% 2

4 - 6 pcs. 20 40% 1

7 pcs. and above 13 26% 3

Total 50 100%
Table 3.11
Question #4
How many candle do you use in a day?

Choices Frequency Percentage Rank

1 - 3 pcs. 179 45% 1

4 - 6 pcs. 169 43% 2

7 pcs. and above 49 12% 3

Total 397 100%

Table 3.12
 38

The survey result shows that 45% are using 1-3 pieces of candles, 43% are using 4-6 pieces of candles
and 12% are using 7 pieces and above. The significance of the result shows that many individuals are using
1-3 pieces of candles than using 4 to 7 pieces of candles.
Question #5
Why do you use candle?

Choices Frequency Percentage Rank

To Relax 57 14% 4

For Decoration 102 26% 3

For Brownout 135 34% 1

For spiritual/religious reason 103 26% 2

Total 397 100%

Table 3.13
The survey result shows that 14% are using candles to relax, 26% are using it for decoration, 34% are
using it for brownout and 26% are using candles for spiritual/religious reason. The significance of the result
shows that most individuals are using candles for brownout.
Question #6
How much is your budget for a votive candle?

Choices Frequency Percentage Rank

 39

₱ 6.00 - ₱ 10.00 93 23% 3

₱ 11.00 - ₱ 15.00 155 39% 1

₱ 15.00 - ₱20.00 149 38% 2

Total 397 100%

Table 3.14
The survey result shows that 23% of the respondents tend to buy ₱6.00 - ₱10.00, 39% of the
respondents tend to buy ₱11.00-₱15.00 and 38% of the respondents tend to buy ₱15.00-₱20.00. The
significance of the result shows that many individuals have budget on ₱11.00-₱15.00 candles than ₱6.00 -
₱10.00 candles.
Question #7
Are you aware that the candle you use may contain harmful materials?

Choices Frequency Percentage Rank

Yes 310 78% 1

No 87 22% 2

Total 397 100%

Table 3.15
The survey result shows that 78% are aware that candles have harmful materials and 22% are not
aware of it. The significance of the result shows that most individuals were aware that candles contain
harmful materials.
 40

Question #8
Where do you usually buy candle?

Choices Frequency Percentage Rank

Public Market 159 40% 1

Church 115 29% 3

Dept. Stores 123 31% 2

Total 397 100%

Table 3.16
The survey result shows that 40% are buying in the public market, 29% are buying in the church, and
31% are buying inside the department stores. The significance of the result shows that most individuals are
buying candles in the public market and the others were in churches and department stores.
Question #9
Have you heard about the perpetual candle holder or the unli candle?

Choices Frequency Percentage Rank

Yes 204 51% 1

No 193 49% 2

Total 397 100%

Table 3.17
 41

The survey result shows that 51% heard about the perpetual candle holder or unli candle and 49%
didn’t hear about it. The significance of the result shows that most of the respondents already heard about
the perpetual candle holder.
Question #10
Do you use candle holder ?

Choices Frequency Percentage Rank

Yes 339 85% 1

No 39 10% 2

Maybe 19 5% 3

Total 397 100%

Table 3.18
The survey result shows that 85% are using candle holders, 10% are not using it, and 5% are not sure
or maybe using it. The significance of the result shows that most individuals are using candle holder which is
a good thing.
Question #11
What holder do you use?

Choices Frequency Percentage Rank

Glass 70 18% 3
 42

Wood 239 60% 1

Metal 88 22% 2

Total 397 100%

Table 3.19
The survey result shows that 18% are using glass for a holder, 60% are using wood, and 22% are using
metal. The significance of the result shows that most individuals are using wood as their candle holder.
Question #12
If there is a holder that can re-molds excess wax into a new candle will you buy?

Choices Frequency Percentage Rank

Yes 337 85% 1

No 9 2% 3

Maybe 51 13% 2

Total 397 100%

Table 3.20
The survey result shows that 85% are willing to buy, 2% are not willing, and 13% are unsure. The
significance of the result shows that most of them are willing to buy a holder that re-molds excess wax into a
candle.
Question #13
Do you want a candle that is recyclable and will last longer?
 43

Choices Frequency Percentage Rank

Yes 353 89% 1

No 7 2% 3

Maybe 37 9% 2

Total 397 100%

Table 3.21
The survey result shows that 89% are wanting to using candles that are recyclable and will last longer,
2% did not want, and 9% are still undecided or unsure. The significance of the result shows that most
individuals are wanting to have a candle that is recyclable and will last longer.
Question #14
How much are you willing to pay?

Choices Frequency Percentage Rank

₱ 200.00 - ₱350.00 110 28% 2

₱351.00 - ₱500.00 84 21% 3

₱501.00 and above 203 51% 1

Total 397 100%

Table 3.22
 44

The survey result shows that 28% are willing to pay at ₱ 200.00 - ₱350.00, 21% are willing to pay at
₱351.00 - ₱500.00, and 51% are willing to pay at ₱501.00 and above. The significance of the result shows that
most individuals are willing to pay at a much higher price than the others.
Question #15
Are you willing to buy the perpetual candle holder?

Choices Frequency Percentage Rank

Yes 354 89% 1

No 4 1% 3

Maybe 39 10% 2

Total 397 100%

Table 3.23
The survey result shows that 89% are willing to buy the perpetual candle holder, only 1% did not want
to, and 10% are still undecided or unsure. The significance of the result shows that most individuals are
willing to buy the perpetual candle holder even on a much higher cost.
 45

Projected Demand

Computation of Projected Demand

Total Population (50,030)

% of respondents who are using candles 99%

Total 49,589

% of respondents who are willing to buy Perpetual 89%

Candle Holder

Total 44,134

% of respondents who are willing to pay ₱501.00 and 51%

above to buy Perpetual Candle Holder

Estimated Total Market Demand for a year 22,508

Average Increase of Demand (2.31%)

2018 22,508
 46

2019 23,028

2020 23,560

2021 24,104

2022 24,660
Table 3.24
The table shows the projected demand that are those who are using candles, those who are willing to
buy Perpetual Candle Holder and those who are willing to pay for ₱501.00 - and above to buy Perpetual
Candle Holder for the next 5 years. The demand for Perpetual candle holder in the year 2019 will increase
from 2.31% on the next year. In 2020, there will be another 2.31% increase in the demand which will be
23,560. In another year, another 2.31% will be added for the last year demand which will be 24,104. In 2022,
another 2.31% will increase in the demand which will be a total of 9.24% and the demand will be 24,660. The
result of the survey for those who are using candles is at Table 3.6, for those who are willing to buy Perpetual
Candle Holder is at Table 3.23 and the result of the survey for those who will buy at ₱501.00 and above for
Perpetual candle holder is at Table 3.22.
D. Supply
According to Investopedia, the supply is a fundamental economic concept that describes the total
amount of a product that is available to the consumers. It relates on the demand for the product at a specific
price. The basis of the average sales is from the indirect competitors of the product.
Projected Supply
 47

The proposed item is thought to be new thought in the market along these lines; making no
competitors. Be that as it may, the advocates expected that by 2023, there will be new existing direct
competitors. Since no data accessible for the future supply of competitors, the defenders have decided the
yearly normal increment of each competitors. Such data has accumulated through meeting. The outcome was
a normal increment of 50% every year.

E. Demand & Supply Analysis with Demand Gap

Supply and demand trends form the basis of the modern economy. As the supply increases, the price
will fall given the same level of demand. The projected increase in demand per year is 2.31%.
This shows that in connection to the demand, the survey of the proponents shows that there is a
positive and potential response among the 397 respondents seeing the Perpetual Candle Holder is a helpful
and easy-to-use product.
F. Price Study
Pricing is an important but complex part of the marketing mix. In a price study, we look at the pricing
of a product or service. This gives you an insight into both price acceptance and price sensitivity. The
proponents consider the breakeven of sales, fixed and other deductible expense before coming up to the mark
up. In a price study, the proponents analyze the consumers’ readiness to pay for the product or service. The
 48

proponents identify which characteristics are affected by this readiness to pay and what are the consumers’
unconscious needs.
Total Cost per
Direct Materials Unit
PVC 400.00
Spring 400.00
Folding Trivet 4,800.00
Wood 750.00
Wick 800.00
Beeswax 6,900.00
Funnel 400.00
Syringe 1,200.00 15,650.00
Direct Labor
Laborer 1 15,600.00
Laborer 2 15,600.00 31,200.00
Overhead
Rent (40%) 4,000.00
Utilities (40%) 1,280.00
Dep.-Production Eq. 1,692.00
Packaging Supplies 2,685.00 9,657.00
Total Product Cost 56,507.00
No. of Expected Unit per
month 180.00
 49

Cost per unit 314.00

Mark up (60%) 188.00
Selling Price 502.00
Table 3.24
The table shows the price study of the raw materials used of the product. The proponents came up with
the total markup of 60% because majority of the respondents are willing to buy Perpetual Candle Holder. The
proponents also used price penetration strategy to determine the initial price of the product upon its
introduction to the market. It will help the company to gain a higher share in the market for a larger number
of potential consumers that will able to buy the product.
G. Marketing Program
Marketing plan as a comprehensive document or blueprint that outlines a company’s advertising and
marketing efforts for the coming year. It describes business activities involved in accomplishing specific
marketing objectives within a set time frame. Basically, a marketing plan is the base of any business. Every
business starts to cover a market gap which no one else fulfills. The gap is unfilled needs of a particular
segment or not properly fulfilled needs. So it means you must do market research to identify that gap. It
explains that marketing is set of actions of activities to fulfill customers` needs profitably.
Product
Perpetual Candle Holder Company Ltd. will be the first manufacturer of candle holder, that
continuously creates a candle, around Metro Manila. This product is produced by PVC, wood, funnel, syringe,
spring, folding trivet, wick and candle. Perpetual Candle Holder Company Ltd. will be using thermal pads to
resist the heat in the funnel, preventing the buyer to burn a hand.
 50

Promotion
The proponents will provide various marketing strategy in promoting the product such as flyers,
leaflets, tarpaulin, and social media advertisement. The business will also be engaged in manufacturing and
direct selling strategy to further introduce the product to the consumers.

Figure 3.1
Price
Prices are not too high to be beyond the average customers’ reach and nor too low to give an impression
of low quality product. Perpetual candle holder company’s pricing strategy is aimed at driving brand loyalty.
Thus, the business will give the good quality of the product.
 51

Place
The Perpetual Candle Holder Company Ltd. is located at 147 Market Ave, Barangay San Miguel, Pasig
City. The business location can be easily found and can easily attract customers because it is along the way,
near the marketplace and around the townhouses and villages.
H. Porter’s 5 forces
 52

Figure 3.2
 53

I. SWOT Analysis
According to Investopedia, it is a framework used to evaluate a company’s competitive position. SWOT
means Strengths, Weaknesses, Opportunities and Threats. It is a strategic planning technique that can help a
business identify its strength, weaknesses, opportunities and threats related to a business competition.

Strengths Weaknesses

- Saves money - New in the market

- Customer satisfaction - Determining the number of supply to produce
- Easy to use - Limited resources due to small capital
- Good quality with a low price - Not tech-savvy
- Product design

Opportunities Threats

- Not much competitors - Saturation of the market

- Decreases the expenses of an individual - Increasing bargain of customers and suppliers
- Expansion of the business - Expense of running media ads
- Target Market Growth
Table 3.25
The table shows the SWOT Analysis of the business. First is the Strengths of the business. Perpetual
candle holder company helps the consumer to save money because it reduces the expenditure of a person.
Another strength is the customer’s satisfaction, it will satisfy a customer because it also reduces the
consumption of candle due to it can create or regenerate a new candle once the first candle melts. Another is
 54

that it is easy to use, because as the melting candle consumes itself the wax will go straightly into the pvc to
molds the wax into a new candle and can be remove by the syringe as you push the syringe upward. Another
one, it is a good quality with a low price because the PVC is the third-most widely produced polyvinyl chloride
that cannot be easily broken and the other materials like wood as the product’s stand, the spring that holds
the candle, the funnel that helps the wax to flow inside the PVC and the thermal pad that helps the consumer
to hold the funnel and pvc without burning their skin. And lastly, the product design that is new to the eyes
of the consumers and can easily attract them.
Second is the business’ weaknesses, because perpetual candle is new to the market the tendency to
create an impact in the market is very little. Another weakness is to determine the number of supply to
produce since the product is new in the market, the business has a few indirect competitor. Another is its
limited resources since the business was just introduced and it is not yet stable in the market. Lastly, the
business is not tech-savvy. The proponents will find it hard to establish a reputation in the internet and it will
be challenging since a lot of business are already selling there.
Third is Opportunities. There is a high chance that many consumer will buy the product because of a
few competitor. Another is it decreases the expenditure of an individual because when a consumer by the
proponents’ product they will only need one candle and a long length of wick to create another candle.
Another is the expansion of the business. The business will also have a higher tendency to expand more
because consumers will find the product useful and affordable that can help them save money. Lastly, the
growth of the target market, there will be more restaurants, funerals, households and memorial garden that
will decrease its expenditure and consumption of candle and because of the increasing death rate.
 55

The last one or the third one is the Threats. There will be a saturation in the market because the
product is new in the market the tendency of dissolving the business is also high since it unstableness.
Another is the increasing bargain of customers and suppliers, because with the indirect competitors in the
market, the market is saturated and the premium target market has several products to purchase in mind.
56
57
58
59
 60

Chapter 5
Financial Aspect
A. Major Assumption
1. The company will be using Straight-Line method of depreciating to Equipment, Furniture and Fixtures
and Improvements with useful life of 5 years with no salvage value.
2. Unit selling price and Cost per unit is increasing every two years of 3%.
3. Net Income will be divided equally among partners.
4. Drawings are as follows:

2019 2020 2021 2022 2023

10,000.00 20,000.00 30,000.00 40,000.00 50,000.00

Table 5.1
5. Partners shall receive an allowance of 5,000 each per month.
6. Operating Expense, except Salaries, 13th Month Pay, Allowances, Taxes and Licenses and Uniform will
increase 3% every year.
7. Income tax payable is 30%.
8. Ending Inventory will be 5% of the succeeding year's sales demand.
 61

B. Product Cost

Perpetual Candle Holder Company Ltd.

Schedule of Total Product Cost
For the year 2019 - 2023
2019 2020 2021 2022 2023

Direct Materials Used (Note 1) 1,766,878.00 1,807,698.00 1,899,878.00 1,946,398.00 2,049,935.00

Direct Labor 374,400.00 374,400.00 374,400.00 374,400.00 374,400.00
Overhead (Note 2) 115,884.00 119,360.52 122,941.34 126,629.58 130,428.46
Total Product Cost 2,257,162.00 2,301,458.52 2,397,219.34 2,447,427.58 2,554,763.46
Table 5.2

C. Initial Working Capital Requirements

Capital Expenditures:
Renovation of the office room ₱20,000.00
Office Equipment 30,397.00
Production Equipment 8,460.00
Pre-operating Expense:
Rent Expense ₱10,000.00
Utilities Expense 3,199.00
 62

Office Furniture & Fixtures 15,400.00

Office Supplies 1,780.00
Packaging Supplies 2,685.00
Salaries Expense 46,200.00
Allowance Expense 10,000.00
Uniform Expense 3,500.00
Advertising Expense 2,500.00
Taxes and Licenses 7,895.00
Total Pre-Operating Expense ₱162,016.00
Buffer fund ₱37,984.00
Working Capital ₱200,000.00
Table 5.3

D. Sources of Finances

Proponents Amount of Investment

Ellyza Serrano `₱100,000.00

Amabelle Pascual 100,000.00

Total ₱200,000.00
Table 5.4
 63

The proponents’ aggregate capital is ₱100,000.00. The majority of the proponents will contribute
₱200,000.00. The proponents’ initial investment will be sufficient to manage the organization’s beginning
tasks for the year. Their contributed capital will come from both of the proponents’ and the proponents’
parents’ savings to meet their coveted contributed capital.

E. Pro-forma of Financial Statements

Perpetual Candle Holder Company Ltd.
Statement of Comprehensive Income
For the Years 2019 - 2023
2019 2020 2021 2022 2023
PROJECTED SALES (Note 3) 2,824,754.00 2,890,014.00 3,045,130.00 3,115,442.00 3,285,945.00
Less: Cost of Sales (Note 4) 1,766,878.00 1,807,698.00 1,899,878.00 1,946,398.00 2,049,935.00
GROSS PROFIT 1,057,876.00 1,082,316.00 1,145,252.00 1,169,044.00 1,236,010.00
 64

Less: Operating Expenses

Packaging Supplies Expense (Note 5) 32,220.00 33,186.60 34,182.20 35,207.67 36,263.90
Office Supplies Expense (Note 5) 21,360.00 22,000.80 22,660.82 23,340.65 24,040.87
Salaries and Allowances Expense (Note 6) 674,400.00 674,400.00 674,400.00 674,400.00 674,400.00
13th Month Pay (Note 7) 46,200.00 46,200.00 46,200.00 46,200.00 46,200.00
Depreciation - Production Equipment (Note 8) 1,692.00 1,692.00 1,692.00 1,692.00 1,692.00
Depreciation - Office Equipment (Note 9) 6,079.40 6,079.40 6,079.40 6,079.40 6,079.40
Depreciation - Improvements (Note 10) 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00
Depreciation - Furnitures & Fixtures (Note 11) 3,080.00 3,080.00 3,080.00 3,080.00 3,080.00
Rent Expense (Note 12) 120,000.00 123,600.00 127,308.00 131,127.24 135,061.06
Taxes and Licenses (Note 13) 7,895.00 7,895.00 7,895.00 7,895.00 7,895.00
Utilities Expense (Note 14) 38,388.00 39,539.64 40,725.83 41,947.60 43,206.03
Advertising Expense (Note 15) 1,200.00 1,236.00 1,273.08 1,311.27 1,350.61
Uniform Expense (Note 16) 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00
SSS Contribution (Note 6) 41,743.20 41,743.20 41,743.20 41,743.20 41,743.20
Philhealth Contribution (Note 6) 6,750.00 6,750.00 6,750.00 6,750.00 6,750.00
Pag-Ibig Contribution (Note 6) 11,088.00 11,088.00 11,088.00 11,088.00 11,088.00
Total Expense 1,019,595.60 1,025,990.64 1,032,577.53 1,039,362.03 1,046,350.07
Net Income Before Income Tax 38,280.40 56,325.36 112,674.47 129,681.97 189,659.93
Less: Income Tax (30%) 11,484.12 16,897.61 33,802.34 38,904.59 56,897.98
Net Income After Income Tax 26,796.28 39,427.75 78,872.13 90,777.38 132,761.95
Table 5.5
 65

The projected statement of comprehensive income of the company shows the company’s revenue,
expenses and profit. The above table shows that the company will result in net income for the first 5 years of
operations. This means that the company is capable of gaining profits and able to pay all the expenses arise
from the operation of the business.

Perpetual Candle Holder Company Ltd.

Statement of Cash Flow
For the Years 2019 - 2023
Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023
Cash Flow from Operating Activities
Net Income 26,796.28 39,427.75 78,872.13 90,777.38 132,761.95
Depreciation - Production Equipment (Note 8) 1,692.00 1,692.00 1,692.00 1,692.00 1,692.00
Depreciation - Office Equipment (Note 9) 6,079.40 6,079.40 6,079.40 6,079.40 6,079.40
Depreciation - Improvements (Note 10) 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00
Depreciation - Furnitures & Fixtures (Note 11) 3,080.00 3,080.00 3,080.00 3,080.00 3,080.00
Decrease (Increase) in:
Inventory (Note 17) (88,234.00) (2,198.00) (4,853.00) (1,938.00) (5,341.00)
Increase (Decrease) in:
 66

SSS Payable (Note 6) 5,150.00 - - - -

Philhealth Payable (Note 6) 1,125.00 - - - -
Pag-Ibig Payable (Note 6) 1,848.00 - - - -
Income Tax Payable 11,484.12 5,413.49 16,904.73 5,102.25 17,993.39
Net Cash Provided (Used) (26,979.20) 57,494.64 105,775.26 108,793.03 160,265.74
Cash Flow from Investing Activities
Purchase of Office Equipment (Note 9) 30,397.00
Purchase of Production Equipment (Note 8) 8,460.00 - - - -
Purchase of Improvements (Note 10) 20,000.00 - - - -
Purchase of Furnitures and Fixtures (Note 11) 15,400.00 - - - -
Net Cash Provided (Used) (74,257.00) - - - -
Cash Flow from Financing Activities
Partner's Investment 200,000.00 - - - -
Partner's Drawings (10,000.00) (20,000.00) (30,000.00) (40,000.00) (50,000.00)
Net Cash Provided (Used) 190,000.00 (20,000.00) (30,000.00) (40,000.00) (50,000.00)
Net Cash Flow 88,763.80 37,494.64 75,775.26 68,793.03 110,265.74
Beginning Cash 0.00 88,763.80 126,258.44 202,033.70 270,826.73
Cash Ending Balance 88,763.80 126,258.44 202,033.70 270,826.73 381,092.47
Table 5.6
The projected cash flow statement shows the amount of inflows and outflows in cash. From the initial
investment of the company increases its cash availability in subsequent year of operations. The company has
sustained this trend of cash through its 5 years of operations. Thus, it has strong evidence that the
company’s large amount of available cash to meet its obligations and losses.
 67

Perpetual candle Holder Company Ltd.

Statement of Financial Position
For the Years 2019 - 2023
2019 2020 2021 2022 2023
Current Assets
Cash 88,763.80 126,258.44 202,033.70 270,826.73 381,092.47
Inventory (Note 17) 88,234.00 90,432.00 95,285.00 97,223.00 102,564.00
Total Current Assets 176,997.80 216,690.44 297,318.70 368,049.73 483,656.47
Non Current Assets
Office Equipment (Note 9) 24,317.60 18,238.20 12,158.80 6,079.40 0.00
Production Equipment (Note 8) 6,768.00 5,076.00 3,384.00 1,692.00 0.00
Improvement (Note 10) 16,000.00 12,000.00 8,000.00 4,000.00 0.00
Furniture and Fixtures (Note 11) 12,320.00 9,240.00 6,160.00 3,080.00 0.00
Total Non Current Assets 59,405.60 44,554.20 29,702.80 14,851.40 0.00
Total Assets 236,403.40 261,244.64 327,021.50 382,901.13 483,656.47

Current Liabilities
SSS Payable (Note 6) 5,150.00 5,150.00 5,150.00 5,150.00 5,150.00
Philhealth Payable (Note 6) 1,125.00 1,125.00 1,125.00 1,125.00 1,125.00
Pag-Ibig Payable (Note 6) 1,848.00 1,848.00 1,848.00 1,848.00 1,848.00
Income Tax Payable 11,484.12 16,897.61 33,802.34 38,904.59 56,897.98
 68

Total Liabilities 19,607.12 25,020.61 41,925.34 47,027.59 65,020.98

Equity
Beginning Capital 200,000.00 216,796.28 236,224.03 285,096.16 335,873.54
Net Income 26,796.28 39,427.75 78,872.13 90,777.38 132,761.95
Drawings (10,000.00) (20,000.00) (30,000.00) (40,000.00) (50,000.00)
Total Partners' Capital 216,796.28 236,224.03 285,096.16 335,873.54 418,635.49
Total Liabilities and Partners' Capital 236,403.40 261,244.64 327,021.50 382,901.13 483,656.47
Table 5.7
The projected statement of financial position displays the financial condition of the company for the
first 5 years of operations. In addition, it shows above the asset, liabilities and equity of the company. The
assets and net worth projections of the company connote the investment profitability because of its
accumulating capital structure.

Notes to Financial Statement

Note 1: Direct Materials Used
 69

2019 2020 2021 2022 2023

Beginning Inventory 0.00 88,234.00 90,432.00 95,285.00 97,223.00
Add: Purchases (Note 18) 1,855,112.00 1,809,896.00 1,904,731.00 1,948,336.00 2,055,276.00
Total Goods Available for Sale 1,855,112.00 1,898,130.00 1,995,163.00 2,043,621.00 2,152,499.00
Less: Ending Inventory 88,234.00 90,432.00 95,285.00 97,223.00 102,564.00
Direct Materials Used 1,766,878.00 1,807,698.00 1,899,878.00 1,946,398.00 2,049,935.00
Table 5.8
Note 2: Overhead
Manufacturing Overhead
Rent (40%) 4,000.00
Utilities (40%) 1,280.00
Depreciation-Production Equipment 1,692.00 6,972.00
Packaging Supplies 2,685.00
Sticker Paper 1,125.00
Box 560.00
Paper Bag 1,000.00
Monthly Overhead 9,657.00
Annual Overhead x 12 115884
Table 5.9

Note 3: Projected Sales

Demand Gap 22,508 23,028 23,560 24,104 24,660
Estimated Market Share Rate 25% 25% 25% 25% 25%
 70

Sales Demand in Units 5,627 5,757 5,890 6,026 6,165

2019 2020 2021 2022 2023

Sales Demand in Units 5,627 5,757 5,890 6,026 6,165
Selling Price 502.00 502.00 517.00 517.00 533.00
Projected Sales 2,824,754.00 2,890,014.00 3,045,130.00 3,115,442.00 3,285,945.00
Table 5.10

Note 4: Cost of Sales

2019 2020 2021 2022 2023
Beginning Inventory 0.00 88,234.00 90,432.00 95,285.00 97,223.00
Add: Purchases 1,855,112.00 1,809,896.00 1,904,731.00 1,948,336.00 2,055,276.00
Total Goods Available for Sale 1,855,112.00 1,898,130.00 1,995,163.00 2,043,621.00 2,152,499.00
Less: Ending Inventory 88,234.00 90,432.00 95,285.00 97,223.00 102,564.00
Cost of Sales 1,766,878.00 1,807,698.00 1,899,878.00 1,946,398.00 2,049,935.00
Table 5.11

Note 5:Supplies Expense

SCHEDULE OF SUPPLIES
Supply Quantity Cost Total Cost Annual Cost
 71

Sticker Paper 25 45.00 1,125.00

Box 40 14.00 560.00
Paper Bag 100 10.00 1,000.00
Packaging Supplies 69.00 2,685.00 32,220.00
Supply
Bond Paper 1 rim 400.00 400.00
Ballpen 1 box 96.00 96.00
Stapler 3 75.00 225.00
Staple wire 20 boxes 15.00 300.00
Staple Removers 4 49.00 196.00
Scotch Tape 3 25.00 75.00
Tape Dispenser 1 120.00 120.00
Paper Clip 2 boxes 20.00 40.00
Metal Clip 10 packs 25.00 250.00
Scissors 3 26.00 78.00
Office Supplies 851.00 1,780.00 21,360.00
Total Cost 4,465.00 53,580.00
Table 5.12

Note 6: Salaries and Allowances Expense

Monthly Payroll
Total
SSS PhilHealth Pag-Ibig Deduction Net Basic Pay
No. of Daily Monthly
Position Person Salary Salary Annual Salary EE ER EC EE ER EE ER
 72

General
Manager 1 5,000.00 60,000.00 - - - - - - - - -

Sales &
Marketing
Head 1 5,000.00 60,000.00 - - - - - - - - -

Production
Head 1 15,000.00 180,000.00 545.00 1,105.00 30.00 187.50 187.50 300.00 300.00 1,032.50 13,967.50
Laborer 1 1 520.00 15,600.00 187,200.00 563.20 1,141.80 30.00 187.50 187.50 312.00 312.00 1,062.70 14,537.30
Laborer 2 1 520.00 15,600.00 187,200.00 563.20 1,141.80 30.00 187.50 187.50 312.00 312.00 1,062.70 14,537.30

Total 5 1,040.00 56,200.00 674,400.00 1,671.40 3,388.60 90.00 562.50 562.50 924.00 924.00 3,157.90 43,042.10

Salaries Expense Annual Payroll Expenses-Employer's Contribution Year-End Contribution Payable

SSS Grand

Employees Monthly Annual ER EC Total Philhealth PAG-IBIG Total SSS Philhealth PAG-IBIG

General Manager 5,000.00 60,000.00 - - - - - - - - -

Marketing &
Sales Head 5,000.00 60,000.00 - - - - - - - - -

Production Head 15,000.00 180,000.00 13,260.00 360.00 13,620.00 2,250.00 3,600.00 19,470.00 1,680.00 375.00 600.00
Laborer 1 15,600.00 187,200.00 13,701.60 360.00 14,061.60 2,250.00 3,744.00 20,055.60 1,735.00 375.00 624.00
Laborer 2 15,600.00 187,200.00 13,701.60 360.00 14,061.60 2,250.00 3,744.00 20,055.60 1,735.00 375.00 624.00
TOTAL 56,200.00 674,400.00 40,663.20 1,080.00 41,743.20 6,750.00 11,088.00 59,581.20 5,150.00 1,125.00 1,848.00
Table 5.13
Note 7: 13th Month Pay
Employee No. of Employee Monthly Salary
Production Head 1 15,000.00
Laborer 1 1 15,600.00
 73

Laborer 2 1 15,600.00
Total 3 46,200.00
Table 5.14

Note 8: Depreciation - Production Equipment

Depreciation-Production Equipment
Components Depreciation
Acc.
Description Quantity Unit cost Amount Period Depreciation Depreciation Carrying amount
Double Boiler 4.00 900.00 3,600.00 Beg.-Year 1 - - 8,460.00
Stove 2.00 1,500.00 4,000.00 End.-Year 1 1,692.00 1,692.00 6,768.00
Molder 10.00 80.00 800.00 End.-Year 2 1,692.00 3,384.00 5,076.00
Stirring Rod 2.00 30.00 60.00 End.-Year 3 1,692.00 5,076.00 3,384.00
 74

Total Production
Equipment 8,460.00 End.-Year 4 1,692.00 6,768.00 1,692.00
End.- Year 5 1,692.00 8,460.00 0.00
Table 5.15

Note 9: Depreciation - Office Equipment

Depreciation-Office Equipment
Components Depreciation
Acc.
Description Quantity Unit cost Amount Period Depreciation Depreciation Carrying amount
Computer Set 1.00 10,000.00 10,000.00 Beg.-Year 1 - - 30,397.00
Electric Fan 3.00 1,200.00 3,600.00 End.-Year 1 6,079.40 6,079.40 24,317.60
Printer 1.00 2,995.00 2,995.00 End.-Year 2 6,079.40 12,158.80 18,238.20
Cash Register 1.00 10,802.00 10,802.00 End.-Year 3 6,079.40 18,238.20 12,158.80
 75

Fire Extinguisher 2.00 1,500.00 3,000.00 End.-Year 4 6,079.40 24,317.60 6,079.40

Total Office
Equipment 30,397.00 End.- Year 5 6,079.40 30,397.00 0.00
Table 5.16

Note 10: Depreciation - Improvements

Depreciation-Improvements
Components Depreciation
Acc.
Description Quantity Unit cost Amount Period Depreciation Depreciation Carrying amount
Improvements 1.00 20,000.00 20,000.00 Beg.-Year 1 - - 20,000.00
End.-Year 1 4,000.00 4,000.00 16,000.00
End.-Year 2 4,000.00 8,000.00 12,000.00
End.-Year 3 4,000.00 12,000.00 8,000.00
 76

End.-Year 4 4,000.00 16,000.00 4,000.00

Total 20,000.00 End.- Year 5 4,000.00 20,000.00 0.00
Table 5.18

Note 11: Depreciation - Furnitures and Fixtures

Depreciation-Furnitures and Fixtures
Components Depreciation
Acc. Carrying
Description Quantity Unit cost Amount Period Depreciation Depreciation amount
Computer Table 1.00 1,000.00 1,000.00 Beg.-Year 1 - - 15,400.00
Office Chair 3.00 1,000.00 3,000.00 End.-Year 1 3,080.00 3,080.00 12,320.00
Office Table 1.00 5,000.00 5,000.00 End.-Year 2 3,080.00 6,160.00 9,240.00
Metal Cabinet 2.00 1,800.00 3,600.00 End.-Year 3 3,080.00 9,240.00 6,160.00
 77

Monoblock
Chair 4.00 700.00 2,800.00 End.-Year 4 3,080.00 12,320.00 3,080.00
TOTAL 15,400.00 End.- Year 5 3,080.00 15,400.00 0.00
Table 5.19

Note 12: Rent Expense

SCHEDULE OF RENT EXPENSE
2019 2020 2021 2022 2023
Monthly Rent 10,000.00 10,350.00 10,712.25 11,087.18 11,475.23
Months in a year 12 12 12 12 12
Annual Rent Expense 120,000.00 124,200.00 128,547.00 133,046.16 137,702.76
Table 5.20

Note 13: Taxes and Licenses Expense

SCHEDULE OF TAXES AND LICENSES

Description Cost
Barangay Permit 300.00
Business Permit 1,500.00
Mayor's Permit 2,000.00
SEC Registration 3,395.00
Fire Clearance 400.00
Business License Permit 300.00
Annual Expense 7,895.00
 78

Table 5.21

Note 14: Utilities Expense

SCHEDULE OF UTILITIES EXPENSE
Item Monthly Cost Annual Cost
Electricity 1,500.00 18,000.00
Water 700.00 8,400.00
Internet Connection 999.00 11,988.00
Annual Utilities Expense 3,199.00 38,388.00
Table 5.22

Note 15: Advertising Expense

SCHEDULE OF ADVERTISING EXPENSE
Description Cost
Fliers 200.00
Tarpaulin 1,000.00
Total 1,200.00
Table 5.23
Note 16: Uniform Expense
SCHEDULE OF UNIFORM EXPENSE
Description Cost
Cost per Uniform 350.00
Number of Uniform each employee 2.00
 79

Total 700.00
Number of employees required to use uniform 5.00
Total Uniform Expense 3,500.00
Table 5.24
Note 17: Ending Inventory
2019 2020 2021 2022 2023
No. of units in Ending Inventory 281 288 295 301 308
Cost per unit 314.00 314.00 323.00 323.00 333.00
Cost of Ending Inventory 88,234.00 90,432.00 95,285.00 97,223.00 102,564.00
Table 5.25
Note 18: Purchases
2019 2020 2021 2022 2023
Sales Demand in Units 5,627 5,757 5,890 6,026 6,165
Add: Ending Inventory 281 288 295 301 308
Less: Beginning Inventory 0 (281.00) (288.00) (295.00) (301.00)

Projected No. of Units to be Purchased 5,908 5,764 5,897 6,032 6,172

Cost per Unit 314.00 314.00 323.00 323.00 333.00
Cost of Purchases 1,855,112.00 1,809,896.00 1,904,731.00 1,948,336.00 2,055,276.00
Table 5.26

Statement of Changes of Equity

 80

A. Pascual E. Serrano Total

Initial Investment 100,000.00 100,000.00 200,000.00
Share in Profits - 2019 13,398.140 13,398.140 26,796.28
Drawing - 2019 (5,000.00) (5,000.00) (10,000.00)
Ending Balance - 2019 108,398.140 108,398.140 216,796.28
Share in Profits - 2020 19,713.875 19,713.875 39,427.75
Drawing - 2020 (10,000.00) (10,000.00) (20,000.00)
Ending Balance - 2020 118,112.015 118,112.015 236,224.03
Share in Profits - 2021 39,436.065 39,436.065 78,872.13
Drawing - 2021 (15,000.00) (15,000.00) (30,000.00)
Ending Balance - 2021 142,548.080 142,548.080 285,096.16
Share in Profits - 2022 45,388.690 45,388.690 90,777.38
Drawing - 2022 (20,000.00) (20,000.00) (40,000.00)
Ending Balance - 2022 167,936.770 167,936.770 335,873.54
Share in Profits - 2023 66,380.975 66,380.975 132,761.95
Drawing - 2023 (25,000.00) (25,000.00) (50,000.00)
Ending Balance - 2023 209,317.75 209,317.75 418,635.49
Table 5.27
Perpetual Candle Holder Company Ltd.
Financial Ratio Analysis
For the Year Ended 2019 - 2023
Profitability Ratio
2019 2020 2021 2022 2023
Gross Profit Ratio
 81

Gross Profit 1,057,876.00 1,082,316.00 1,142,252.00 1,169,044.00 1,236,010.00

Net Sales 2,824,754.00 2,890,014.00 3,045,130.00 3,115,442.00 3,285,945.00
0.37 0.37 0.38 0.38 0.38

Return on Asset
Net Income 26,796.28 39,427.75 78,872.13 90,777.38 132,761.95
Average Total Asset 236,403.40 261,244.64 327,021.50 382,901.13 463,656.47
0.11 0.15 0.24 0.24 0.29

Return on Equity
Net Income 26,796.28 39,427.75 78,872.13 90,777.38 132,761.95
Average Partner's Equity 216,796.28 236,224.03 285,096.16 335,873.54 418,635.49
0.12 0.17 0.28 0.27 0.32
Table 5.28

Liquidity Ratio
2019 2020 2021 2022 2023
Current Ratio
Current Asset 176,997.80 216,690.44 297,318.70 368,049.73 483,656.47
Current Liabilities 19,607.12 25,020.61 41,925.34 47,027.59 65,020.98
9.03 8.66 7.09 7.83 7.44

Cash Flow Ratio

Operating Cash Flow -26,979.20 57,494.64 105,775.26 108,793.03 160,265.74
 82

Current Liabilities 19,607.12 25,020.61 41,925.34 47,027.59 65,020.98

-1.38 2.30 2.52 2.31 2.46
Table 5.29

Asset Utilization
2019 2020 2021 2022 2023
Asset Turnover
Net Sales 2,824,754.00 2,890,014.00 3,045,130.00 3,115,442.00 3,285,945.00
Average Total Asset 236,403.40 261,244.64 327,021.50 382,901.13 463,656.47
11.95 11.06 9.31 8.14 7.09

Debt Ratio
Total Liabilities 19,607.12 25,020.61 41,925.34 47,027.59 65,020.98
Total Asset 236,403.40 261,244.64 327,021.50 382,901.13 463,656.47
0.08 0.10 0.13 0.12 0.14
Table 5.30

Investment Financing Ratio

2019 2020 2021 2022 2023
Equity Multiplier
Average Total Asset 236,403.40 261,244.64 327,021.50 382,901.13 463,656.47
Average Partner's Equity 216,796.28 236,224.03 285,096.16 335,873.54 418,635.49
1.09 1.11 1.15 1.14 1.11

Return on Investment
 83

Income before Tax 38,280.40 56,325.36 112,674.47 129,681.97 189,659.93

Investment 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
0.19 0.28 0.56 0.65 0.95
Table 5.31