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I. INTRODUCTION

Landscaping has become a popular phenomenon these days. Many

residential areas and commercial establishments in the Philippines are now

spending to have beautiful landscapes to make their surroundings pleasing

to the eyes. There has been a growing demand for lawn care and

landscaping business through the years. A lot of private home owners

spend money beautifying their gardens and lawns and many business

establishments hire specialists to make their grounds more attractive to

customers.

A landscape business can be lucrative as there are plenty of

homeowners who do not have the time, energy or skills to take care of their

yards and to design their garden. Beyond the basic gardening services like

mowing, weeding, and fertilizing, a landscaper can work on the actual

landscape designs or do advanced installations of garden decorations and

even planting.

Landscaping is a general term that refers to any activity that modifies

the visible features of an area of a land. It is the art and science of

designing and managing the outdoor space to create an environment that

is highly suitable to a garden of plants and flowers.

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Primarily, the main purpose of landscaping is to achieve beauty,

privacy, and pleasure with ornamental plants as its main component.

Trees, shrubs, vines, ground covers, and herbaceous perennials are

utilized in a creative manner to beautify an outdoor space. Landscaping is

not limited to achieve beauty alone. The ornamental plants are the key

elements used in landscaping and impart other functions that people

usually do not notice.

Owing to the beauty they bring, plants spare an element of

satisfaction, relaxation and delight to human beings. A simple arrangement

of plants can alter the surroundings and render it more beautifully because

of its inherent aesthetic and architectural qualities. The plants in the

landscape areas also add functionality by modulating temperature, abating

noise, reducing glare, and increasing privacy and security. In this manner,

a beautiful surrounding imparts a sense of peace, harmony, and tranquility

(http://www.gardenvisit.com/landscape_architecture).

Historically, landscape designers were trained by apprenticing to

accomplish masters in the field. Institutional education in landscape design

appeared in the early 20th century. Over time it became available at various

levels. Ornamental horticulture programs with design components are

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offered at community college and universities within schools of agriculture

or horticulture.

Other routes of training are through informal apprenticeships with

practicing landscape designers, landscape architects, landscape

contractors, gardeners, and garden centers. Since the landscape designer

title does not have college degree or licensing requirements to be used,

there is a wide range of sophistication, aesthetic talent, technical expertise,

and specialty strengths to be responsibly matched with specific client and

project requirements.

Many landscape designers have an interest and involvement with

gardening, personally or professionally. Some integrate this scope with

their design practice, informally or as licensed landscape contractors.

Gardens are dynamic and not static after construction and planting are

completed. Involvement with landscape business in relation to

management and care depend on the owner’s and client’s needs and

inclinations. (www.wikipedia.com)
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II. COMPANY SUMMARY

The proposed business will offer landscaping services and will

operate under the name “Flower Garden Landscaping” (See Exhibit I).

The firm will be known for its beautiful, stunning and inspiring designs. It

enhances the beauty of the surroundings and provides the best quality

landscaping services to sustain the best outdoor environment.

The business intends to provide various landscaping styles that will

make the place more presentable and beautiful. It will offer landscape

designs with themes such as Japanese Garden, Modern Tropical Garden,

Zen Garden, Oriental Garden and other services such as installation of mini

water falls and other water features, grotto installation, pot scaping and

layout of carabao grass, blue grass and grog grass (See Exhibit IV).

Customers will pay by sq.m. and by design depending on what they

desire in a garden. The business will be open from Monday to Saturday,

7:00 am to 5:00 pm. with one hour noon break. Sunday will be considered

day-off for all workers.

Its initial capitalization will be Php 500,000.00 just enough for the

acquisition of garden equipment and tools and for the rental fee. It will be

located at Anabu I, Imus, Cavite (See Exhibit II). It has an area of 59

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square meters with a dimension of 8.0 by 9.8 meters (See Exhibit III). The

lease will be Php 6,000.00 per month with 1 month advance and 1 month

deposit. The lease contract will be renewable every 2 years.

The business will benefit in the location because of its proximity to

different subdivisions and business establishments that are in need of

beautiful garden and surroundings. The source of raw materials is located

in Imus and Silang.

III. SERVICE DESCRIPTION

A service activity contains a set of things that are needed to help

the firm in achieving its business objectives.

The following are the different landscape designs that the firm will

offer with the corresponding theme:

A. Japanese Garden

This is a traditional garden that creates miniature idealized landscapes

often in a highly abstract and stylized way.

Plants needed are:

 San Francisco
 Boungainvilleas
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 Calachuchi
 Woodland Rhododendrons
 Japanese Palmatum
 Trident maple
 Patio white pine
 Taxus
 Dwarf Azaleas
 Iris
 Conifer
B. Modern Tropical Garden

It features tropical plants and requires good rainfall or a decent irrigation

or sprinkler system for watering. These gardens typically need fertilizer

and heavy mulching.

Plants needed are:

 Jonnat
 Ground Orchid
 Centipede Fern
 Mini Palm Tree
 Palmera
 Pine Tree
 Flox Tail
 Candle Top
 Tea Plant
 Sea Fresh
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 Travellers Palm
 Euphorbia
 Gumamela
 Heliconia
 Exotic papyrus
 Cycad
 Santan
 Fireball

C. Zen Garden

It creates a miniature stylized landscape through carefully composed

arrangements of rocks, water features, moss, pruned trees and bushes

and sues gravel or sand that is raked to represent ripples in water.

Materials needed are:

 River stones
 White pebbles
 Pink stones
 White sand
 Monolith stone
 Araal stone
 Boulders
D. Oriental Garden

A type of Japanese garden that recreates nature on a small garden.

The following plants needed are:

 Topiary plants
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 Buddha bamboo
 Lemon grass
 Jasmine
 Bonzai
 Oriental Totem pole

IV. FORM OF BUSINESS ORGANIZATION

The proposed business will be organized as a sole proprietorship.

It is considered by the owner due to the following reasons:

 It requires a limited amount of capital

 Easy formation
 Simple control by the persons involved
 Direct association with the operations
 Better chance to create incentives or other benefits
 Flexibility in making quick decisions
 Tax advantages compared to partnership and corporation
 Does not require so many documents

V. PERSONNEL ASPECTS

The organization is composed of people who made up the

management. As a business entity, the success or failure of a business is

in the hands of the people who have the knowledge, skills and ability to run
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and handle the business with the use of his full potential effectively.

Personnel are considered the most significant and vital factor of the

organization. Therefore, the key to the firm’s success is on the hands of

human resources.

Effective and efficient management can best be gauged with the

cohesiveness, coordination and good relationships of everyone in the

organization in the achievement of its goal.

The system of management will be provided by the manager/owner.

The manager will see to it that all initial requirements are done during the

early stages of the project. Daily supervision will help things easily

assimilated and make sure that all details of the business are followed.

The following will have the following for its personnel: a manager, a

bookkeeper, a landscape designer/purchaser, gardener (2) and helper (2).

A. BACKGROUND/QUALIFICATIONS OF THE PERSONNEL

Manager

 A graduate of any business related course

 At least with one year work experience in landscaping business

 Must be enthusiastic, self-motivated, and results oriented

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 With good communication and interpersonal skills

 Male or female

 Must be 25 years old and above

Bookkeeper

 A graduate of any business related course, preferably major in Financial

Management

 Must be honest, dependable and trustworthy

 With at least one year work experience on any related field

 Preferably female

 At least 22 to 30 years old

Landscape Designer/Purchaser

 Must be a college level

 Should be knowledgeable with CAD (Computer Aided Design) Software

for drafting and designing

 Should possess strong analytical skills

 With good communication and written skills

 Must be creative
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 With at least one year work experience related to landscape business

 Male or Female

Gardener (2)

 At least high school graduates

 Between 20 to 40 years old

 Must be physically fit

 With complete knowledge about gardening

 Willing to work under pressure and with minimum supervision

 Must have at least one year work experience as gardener

Helper (2)

 At least a high school graduate

 Works with minimum supervision

 Must be physically fit

 Willing to work under pressure

B. DUTIES AND RESPONSIBILITIES

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It should be the policy of the firm to issue a clear delegation of

authority and responsibilities. This will ensure the smooth flow of operations

and prevent overlapping of duties. Complete, specific and detailed

identification of functions, clear and firm delegation of authority and

assumption of duties and responsibilities for the personnel of the firm that

can lead to the success of the organization

Manager

 Performs the planning and forecasting to anticipate the opportunity,

problems and conditions of the business

 Supervises and manages the overall performance of the workers

 Analyzing and developing strategies on how to improve quality of

service

 In-charge on the distribution of payroll

 Receives payment from customers

 Establishes prices of landscaping

 Will also serve as the cashier of the business

Bookkeeper

 Maintains books of accounts of the business

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 Prepares financial reports

 Computes the salaries of workers

Landscape Designer/Purchaser

 Makes drafts of landscape designs

 Determines the overall expenses and cost of every landscape design

 Determines the overall expenses involved in every design

 In-charge of ordering and purchasing of the needed materials for every

landscape design

 In-charge of sourcing for materials and suppliers

Gardener (2)

 Perform the actual landscaping to customers

Helper (2)

 Assists the gardener in the actual landscaping activity

 Performs other duties that may be assigned by the manager

 Maintains the cleanliness of the business area

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COMPENSATION PLAN

The usual motivation of the employees depends on how well they are

compensated or paid by the business owner. When they receive a good

payment, they tend to excel in their work and the firm sees to it that it gives

the employees the right salaries and benefits because it will give rise to the

enthusiasm of the employees to work effectively and efficiently.

These are the following plans for the project’s compensation project:

a. Monthly Salary

 Manager – Php 12,000.00

 Bookkeeper – Php 9,000.00

 Landscape Designer/Purchaser – Php 11,000.00

 Gardener (2) – Php 9,000.00 each

 Helper (2) – Php 7,000.00 each

b. An Annual increase of 10% on the monthly salary will be given for

each employee.

c. A 13th month pay will be provided

d. SSS, Pag-ibig and Philhealth benefits will also be given

VI. MARKET ANALYSIS

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Marketing is typically seen as the task of creating, promoting and

delivering goods and services to consumers. The aim of marketing is to

know and understand the customers so well that the product or service fits

him and sells itself. Its main function is to identify the needs and wants of

the customers and adapting to the specific services available for the

consumption of the majority. In order to satisfy the needs and wants,

marketers must address these demands by creating quality products and

services at affordable prices.

The market study seeks to determine the following:

 The size, nature and growth of the total demand for the services to be

offered.

 Description and prices of the products and services to be offered.

 Supply situation and the degree of competition.

 Different factors that may affect the market.

 The appropriate marketing program to attract more customers.

TARGET MARKET/CUSTOMERS

The business will focus its business operations on the different

subdivisions located in Imus, Dasmarinas, General Trias and Tanza. The

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target market are the homeowners in the large-scale subdivisions of these

4 places. The proponent chose these four places because of their large

potential for a landscaping service.

DEMAND ANALYSIS

It will help determine if a business can successfully enter a market

and generate enough profits. Demand is the relationship between the price

and the quality of products and services that the business can provide.

Population is essential in projecting the demand. An increase in population

also means an increase in potential buyers. Thus, it is necessary to

determine the number of houses in the target places to be able to forecast

the number of potential customers that will acquire the landscaping

services of this firm.

TABLE 1
List of Large Scale Subdivisions
(As of 2017)

TANZA GEN. TRIAS IMUS DASMARINAS

1.RetireesVillage 1.Buenavista Subd. 1.Parkplace Village 19.Sampaguita Ville 1.Dasmarinas Royal Ville
2.Amoreville 2.Sta.Clara Subd. 2.ACM Homes 20.Citilane Subd. 2.Sterling Manors
3.Villa Monteverde 3.Citiland Village 3.Sunnyville Homes 21.Angel Village 3.Chester’s Place
4.Cabba Subdivision 4.Lopez-Gomez Sub 4.Regatta Classic 22.Abad Subd. 4.Washington Place
5. Sta. Cecilia Subd. 5.Veejay Subd. 5.Palace Athena 23.Barzaga Subd. 5.Dasmarinas Villas
6.Villa Marciana I&II 6.Metro South Subd. 6.Athena Classics 24.Juliards Homes 6.Rio de Oro
7.Familyville Subd. 7.Crystal Village 7.Margelo Subd. 25.Refel Homes 7.Il Giardino
8.Glowing Field 8.Eagle Ridge 8.Donnaklevin Subd. 26.Dulce Amor Subd. 8.Villagio Ignatius
9.Fojas Subd. 9.Metropolis Greens 9.Holiday Village 27.Real Village 9.Bel Aldea
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10.Garden Coast 10.Tierra Nevada 10.Pagcor Complex 28.Perpetual Village 10.Asian Leaf
11.Vista Acacia 11.Pasadena Heights 11.Treelane Subd. 29.Felizana Homes 11.The Legion
12.Villa Lotta 12.Maravilla Subd. 12.Pillars Homes 30.Assetville 12.Villa San Lorenzo
13. Bobadilla Subd. 13. Governor Hills 13.Pag-asa Village 31.Dimasaland 13.Crystal Place
14.St.Anthony Subd. 14.The Eztancia 14.Hoteliers Village 32.Vina Village 14.The Legion
15.Gabriel Subd. 15.Trias Hills 15.Ilano Subd. 33.Family Subd. 15.Camella Lessandra
16.Castro Subd. 16.BMS Village 16.Alarcon Village 34.Camella Homes I 16.Camella Barcelona
17.Torres Subd. 17.Antel Subd. 17.Senateville 35.Camella Homes II
18.Country Miles 36.Camella Homes III

Table 1 presents the total number of subdivisions (as of 2017) in the four

target places in Cavite; 17 for Tanza, 17 for Gen. Trias, 36 for Imus and 16

for Dasmarinas. The names of subdivisions were taken from the assessor’s

office of the four places. This data can support the future entrepreneur in

determining the demand for landscaping service.

TABLE 2
No. of Residential Houses on Target Subdivisions
(As of December 2017)

TARGET PLACES Number of Residential Houses

Tanza 2,248
Gen. Trias 2,223
Imus 3,780
Dasmarinas 1,723
TOTAL 9,974

The table above is the total number of approved residential houses

amounting to Php 1,000,000 and above. It is based on the data from the

Municipal Planning and Engineering Office of the four target places.

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TABLE 3
No. of Residential Houses in Target Subdivisions with Landscape
(As of 2017)

Target Places Number of % of Houses Total No. of Total No. of

Residential w/ Landscape Houses w/ Houses w/o
Houses Landscape Landscape
Tanza 2,248 30% 674 1,574
Gen. Trias 2,223 30% 667 1,556
Imus 3,780 30% 1,134 2,646
Dasmarinas 1,723 30% 517 1,206
TOTAL 9,974 2,992 6,982

Table 3 shows the total number of houses from the different subdivisions of

the four target places with landscape. The survey is very important to

determine if there is still a demand for landscaping services. As of 2017,

there are still 6,982 houses or 70% without landscape; the existing 30% of

houses with landscape was provided to the researcher by the President of

the Homeowner’s Association of the different subdivisions from the three

target places.

TABLE 4
Projected Demand

YEAR Houses w/o % Increase Projected

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Landscape Demand
2018 6,982 2% 7,122
2019 7,122 2% 7,264
2020 7,264 2% 7,409

From the total number of houses without landscape as shown in Table 3 in

the year 2017 which is 6,982, an assumption is made that there is an

increase of 2% newly constructed houses from the different subdivisions in

the four target places on the next three years (2018 to 2020) in order to

come up with the projected demand.

SUPPLY ANALYSIS

The information about the existing supply or the present competitors

that are also engaged in landscaping services were gathered through

surveys. Visits to the four target areas were done by the proponent. Based

on the survey conducted, there are only few existing landscaping

businesses on the four target places.

TABLE 5

Present Competitors

Name of Address Services Prices

Competitors Offered
Kayce Garden 36 Malihan St., Landscaping -P10,000 to
Services Zone 1, 15,000
Dasmarinas Grotto -P20,000 to
City Installation 30,000
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Angels Garden 692 Bgy. Landscaping -P5,000/sq.m.

& Landscaping Mangahan Gen.
Buy & Sell of -P100 and
Services Trias Ornamental above
Plants
Jocelyn 77 Buhay na Tubig, Landscaping -P5,000/sq.m.
Garden Imus Garden Soil -P130 per sack
Mother Nature’s Bgy. Kapipisa, Landscaping -P6,000/sq.m.
Garden Tanza Garden -P1,000/mo.
Maintenance

Table 5 presents the existing competitors from the four target places, the

services offered and the corresponding prices.

TABLE 6
Present Supply

Existing No. of Market Share Present Supply

Competitors Residential (30%)
Houses (as of
2017)
Kayce Garden 9,974 10% 997
Angels Garden 9,974 7% 698
Jocelyn 77 9,974 8% 798
Garden
Mother Nature’s 9,974 5% 499
Garden
TOTAL 2,992

Table 6 presents the present supply based on the market share (30%) of

the four existing competitors with the corresponding percentage for each

and with a total of 2,992.

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TABLE 7
Projected Supply

YEAR Projected No. of % of Supply Projected

Residential Houses Increase Supply
2018 7,122 10% 712
2019 6,552 15% 983
2020 6,426 20% 1,285

The projected supply was computed by getting the number of projected

residential houses as shown in Table 4 (Projected Demand). From this

data, a projection of supply increase is made from 2018 to 2020; Year 1

has 10%, 15% for Year 2 and 20% for Year 3. The projected supply

annually was computed by deducting the previous supply from the

projected number of residential houses.

DEMAND AND SUPPLY ANALYSIS

The demand and supply analysis insures that the proposed project is

still viable and needed to fill the gap and can answer the needs of the

potential market.
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TABLE 8
Projected Unfilled Demand

YEAR Projected Projected Projected

Demand Supply Unfilled
Demand
2018 7,122 712 6,410
2019 7,264 983 6,281
2020 7,409 1,285 6,124

The projected unfilled demand was computed by getting the difference

between the projected demand and the projected supply. As shown in the

table, there is a wide gap between the demand and being supplied by the

existing landscaping businesses in the 4 target places.

TABLE 9
Projected Market Share
(No. of Target Residential Houses)

YEAR Projected % of Projected Market Share

Unfilled Market Share
Demand
2018 6,410 20% 1,282
2019 6,281 25% 1,570
2020 6,124 30% 1,837

Based on the demand gap between the projected demand and the

projected supply, the entrepreneur forecasted to have a 20% of its market

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share on its first year of operation which is 1,282. This figure is just enough

that can be accommodated by the 2 gardeners and 2 helpers (which is 4

houses per day; 2 in the morning and 2 in the afternoon). An additional 1

gardener and 1 helper will be hired by the firm in Year 2 and Year 3 in

order to achieve its target market share.

VII. PRICE STUDY

The setting of prices of the landscape service to be offered will

determine the income that the firm will generate for the next three years of

operation.

The following prices were based on the existing competitors’ prices

covering an area of five, ten and fifteen square meters.

TABLE 10
Prices of Landscape Services
(Year 2018)

Types of 5 sq. meters 10 sq. meters 15 sq. meters

Landscape
Package
Ordinary Php9,000 Php17,000 Php25,000
Package
Extra-Ordinary Php18,000 Php34,000 Php50,000
Package
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Flower Garden Landscaping will be offering its services Php 1,000 to Php

2,000 lower than its competitors in order to attract more households in the

target subdivisions. But there will be a 10% increase on prices for Year

2019 and 2020.

TABLE 11
Ordinary Package

Japanese Tropical Zen Garden Oriental

Garden Garden Garden
5 sq. m. Plants: Blue Plants: carabao Plants: bemuda Plants: Carabao
Grass, yucca, grass, san grass, aurocaria, grass, ficus
blue palm, franscisco, patio creeping junifer, benjamina,
cordilyn ti plant, white pine, taxus, kioto, popeo, variegated
palmera, scarlet, dwarf azaleas, iris, umbrella plant, camachile,
variegated conifer, calachuchi variegated ferns, variegated San
cucharita, silver Decorative items: Decorative items: Francisco, yellow &
wall, San Buddha bamboo, small pond, white violet lantana,
Francisco Oriental totem river stones, and boungainvilla,
Decorative items: pole, nigra blue/green stones variegated santan
flat stones, bamboo, boulders Decorative items:
boulders and terra magel, boulders,
cotta jars terra cotta jars, and
driftwoods
10 & 15 Plants: Bermuda Plants: blue grass, Plants: topiary Plants: carabao
grass, phoenix, phoenix, yucca, plants, lemon grass, ficus
sq. m. yucca, palmera, palmera, song of grass, jasmine, triangular,, ficus
song of India, India, scarlet bonsai, ferns, benjamina,
scarlet beauty, beauty, silver wall, dwarf azaleas, cordilyn ti plant,
cuphea, golden golden box, San calachuchi variegated San
box, silver wall Francisco Decorative items: Francisco, yellow &
Decorative items: Decorative items: white pebbles, pink violet lantana
driftwoods, river boulders and terra stones, boulders, Decorative items:
stones, cotta jars oriental totem pole magel, boulders,
monolithic stones terra cotta jars and
driftwoods
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TABLE 12
Extra-Ordinary Package

Japanese Tropical Zen Garden Oriental

Garden Garden Garden
5 sq. m. Plants: blue Plants: Bermuda Plants: carabao Plants:
grass, champagne grass, bushida, grass, ficus champaigne tree,
tree, sefritsil, creeping junifer, benjamina, bushida, fox tail,
palmera, yucca fox tail, Chinese variegated Chinese holly,
palm, bromeliads, holly, giant ferns, boungainvilla, yucca palm, giant
silver wall, fox green leah, bonsai niyug-niyugan, ferns, bonsai
tail, century Decorative items: dapong lalaki, Decorative items:
Decorative items: white stones, yellow/orange white stones, blue
cooking vat and green slate stones, lobster claw, violet and green slates,
flat blue & green small pond with lantana, calachuchi drift wood, fern
slates wood bridge and Decorative items: post
cooking vat fern post, adobe
stones, terra cotta
jars and drift wood
10 & 15 Plants: blue Plants: Bermuda Plants: carabao Plants:
grass, grass, aurocaria, grass, yellow/orange
sq. m. champaigne tree, bushida, Chinese sphatopylum, ficus lobster claw, violet
seifritsil, blue & bamboo, fox tail, benjamina, lantana, mother in
red palmera, umbrella plant, deliciosa, laws toungue,
phoenix palm, giant ferns, green variegated ferns, variegated
scarlet beauty, leah, bonsai dama de noche, cucharita, magel,
silver wall, yellow Decorative items: magel cooking vat
lobster claw, red white stones, Decorative items: Decorative items:
ginger, green slate stones, fern post, bricks, small pond,
bromeliads small pond w/ adobe stones, Japanese garden,
Decorative itens: wood bridge and creeping Charlie, bricks, terra cotta
cooking vat, flat Japanese lantern terra cotta jars and jars
blue/green slates wheel bench or
love seat

Source: Landscaping Pamphlets provided by the existing landscaper in Noveleta,

Cavite.
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VIII. FACTORS AFFECTING THE MARKET

Knowing the market well is one of the important things to be

considered when putting up a business. It is important to determine the

nature of the actual business that an investor would want to pursue in order

to assure the possibilities of potential problems that may arise during the

business operation.

A. Competition

In any type of business, competition is always present. Other

landscaping businesses may offer more satisfying services that may

appear more favorable to target customers. Thus, this firm needs to

develop a more effective way to attract more customers. One way is to

offer a free grass trimming and pond cleaning every two months.

B. Income Changes

As the income of the households decreases, there is a possibility that

the demand for landscaping also follows. With this problem, the firm can

provide discounts or even offer other types of landscaping which are

attractive but affordable.

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C. Customer Preferences

Clients are of different choices or preferences. Some may do their own

landscaping in their garden to avoid additional expense. Proper

encouragement will be done by this business by showing them the

difference if the beautification of the garden is performed by an

experienced gardener at affordable prices.

IX. MARKETING PROGRAM

Marketing strategies are the result of a meticulous market analysis. A

market analysis forces the entrepreneur to become familiar and aware with

all aspects of the business plan in order to achieve its target market share.

To attain this, the firm will implement the following for its marketing

strategies:

1. Display of attractive and colorful tarpaulins at the front gate of each

subdivision to create attention to the homeowners.

2. Placement also of tarpaulins on strategic places in Tanza, Imus,

Dasmarinas and Gen. Trias.

3. A 5% commission will be given to a person who can bring one

customer to the firm.

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4. Establishment of good relationships with customers by visiting them

occasionally.

5. Invite officers of different homeowners association for a small talk and

promote the services provided by Flower Garden Landscaping.

6. Have a sample landscape using Facebook.

X. FINANCIAL ANALYSIS

This aspect aims to prove the project’s solvency, liquidity and

profitability; because no business will exist and survive if right from the

outset, the financial considerations are defective or inadequate.

Financial Assumptions and Accounting Policies

1. It was assumed that 1% of sales remained uncollected as of year-

end.

2. Purchases of gardening and supplies materials from suppliers were

paid every end of the month.

3. Salaries were increased by 10% annually.

4. Gardening and other supplies on hand were carried at 3% of current

year’s requirement.

5. Operating expenses increase as the number of clients increase

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6. Prepaid rent was P10,000, one month advance and two months

deposit.

7. The initial investment made by the owner was P500,000.

Financial Statements

Flower Garden
Income Statement
For the 3-year ended December 31, 2020

Sales Revenue 2018 2019 2020

Contract Revenues 10,248,000.00 12,560,000.00 14,696,000.00
Less: Expenses
Organization Cost 30,000.00 - -
Gardening Materials 7,173,600.00 8,792,000.00 10,287,200.00
Supplies and Overhead 1,537,200.00 1,884,000.00 2,204,400.00
Salaries 819,000.00 900,900.00 990,990.00
Utilities 240,000.00 312,000.00 405,600.00
Transportation 120,000.00 144,000.00 172,800.00
Rental 96,000.00 96,000.00 96,000.00
Professional fee 60,000.00 66,000.00 72,600.00
Representation 50,000.00 65,000.00 84,500.00
Professional fees 36,000.00 36,000.00 36,000.00
Advertising & Marketing 25,000.00 11,000.00 11,000.00
Fringe Benefits 17,850.00 18,150.00 19,200.00
Total Expenses 10,204,650.00 12,325,050.00 14,380,290.00
Net Income 43,350.00 234,950.00 315,710.00

Flower Garden
Statement of Changes in Equity
For the 3-year ended December 31, 2020

2018 2019 2020

Capital Beginning - 543,350.00 578,300.00
Investment of Owner 500,000.00
Withdrawal by owner (200,000.00) (300,000.00)
Add Net Income 43,350.00 234,950.00 315,710.00
Capital End 543,350.00 578,300.00 594,010.00
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Flower Garden
Statement of Financial Position
For the 3-year ended December 31, 2020

ASSETS 2018 2019 2020

CURRENT ASSETS
Cash in Bank 147,546.00 207,180.00 143,174.00
Accounts Receivables 102,480.00 125,600.00 146,960.00
Prepaid Rent 32,000.00 32,000.00 32,000.00
Gardening Materials Inventory 215,208.00 175,840.00 205,744.00
Supplies Inventories 46,116.00 37,680.00 66,132.00
Total Current Assets 543,350.00 578,300.00 594,010.00
TOTAL ASSETS 543,350.00 578,300.00 594,010.00

OWNER'S EQUITY
Owner's Capital 543,350.00 578,300.00 594,010.00
TOTAL LIABILITIES & EQUITY 543,350.00 578,300.00 594,010.00

Flower Garden
Cash Flow Statement
For the 3-year ended December 31,
2018

2018 2019 2020

Cash Inflow from Operations
Collection from Customers 10,145,520.00 12,536,880.00 14,674,640.00
Cash Outflow from Operations

Cash Outflow from Operating Expenses (10,497,974.00) (12,277,246.00) (14,438,646.00)

Net Cash Inflow from Operations (352,454.00) 259,634.00 235,994.00

Cash Inflow from Financing Activities

Owner's Withdrawal (200,000.00) (300,000.00)

Investment by Owner 500,000.00    

Net Cash Inflow from Financing Activities 500,000.00 (200,000.00) (300,000.00)

Net Cash Inflow 147,546.00 59,634.00

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(64,006.00)
Add Prior Year's Cash Balance   147,546.00 207,180.00
Ending Cash Balance 147,546.00 207,180.00 143,174.00

Schedules
Schedule
1 2018 2019 2020
Packages Qty Price Amount Qty Price Amount Qty Price Amount
Ordinary
Package
3,080,000.00 3,768,000.00
5m 385.00 8,000.00 471 8,000.00 551 8,000.00 4,408,000.00
Ordinary
Package
4,096,000.00 5,024,000.00
10m 256.00 16,000.00 314 16,000.00 367 16,000.00 5,872,000.00
Ordinary
Package
3,072,000.00 3,768,000.00
15m 128.00 24,000.00 157 24,000.00 184 24,000.00 4,416,000.00
Extra-
Ordinary
4,096,000.00 5,024,000.00
Package
5m 256.00 16,000.00 314 16,000.00 367 16,000.00 5,872,000.00
Extra-
Ordinary
6,144,000.00 7,552,000.00
Package
10m 192.00 32,000.00 236 32,000.00 276 32,000.00 8,832,000.00
Extra-
Ordinary
3,120,000.00 3,696,000.00
Package
15m 65.00 48,000.00 77 48,000.00 92 48,000.00 4,416,000.00
Total
157 183
Revenue
1,282   10,248,000.00 0   12,560,000.00 7   14,696,000.00

Schedule 2 2018 2019 2020

Cash Outflow from Operating Activities      
Organization Cost 30,000.00 - -
Gardening Materials 7,388,808.00 8,752,632.00 10,317,104.00
Supplies and Overhead 1,583,316.00 1,875,564.00 2,232,852.00
Salaries 819,000.00 900,900.00 990,990.00
Utilities 240,000.00 312,000.00 405,600.00
Transportation 120,000.00 144,000.00 172,800.00
Rental 128,000.00 96,000.00 96,000.00
Professional fee 60,000.00 66,000.00 72,600.00
Representations 50,000.00 65,000.00 84,500.00
Professional fees 36,000.00 36,000.00 36,000.00
Advertising & Marketing 25,000.00 11,000.00 11,000.00
Fringe Benefits 17,850.00 18,150.00 19,200.00
Total 10,497,974.00 12,277,246.00 14,438,646.00
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