I.

Executive Summary

Lugaw Ala Eco is under the sector of food industry wherein the purpose of the business is to offer

improved and taste bud-satisfying food products. The business aims to cater local customers such as

students, employees, nearby residents and more that are looking for a new and improved food product in the

form of enhanced “lugaw”.

San Jose City is a fast-growing municipality in the province of Nueva Ecija. It has become a hot spot

for investments for anyone who wanted to put up a business. Some businesses that are established in the city

are, Walter Mart, Magic Mall and Savemore Supermarket.

The business will be located at Romano St., San Jose City. There is a newly built building in the

street, the Belena Building, which offers business owners to lease to. The proponents have chosen the site

because it is near the target market and the location can easily be accessed. Although there are other

businesses similar to Lugaw Ala Eco, its new varieties of “lugaw” will be its difference among the others.

Having a wide range of target market, Lugaw Ala Eco has a great possibility to earn profit.

Lugaw Ala Eco offers different varieties of food products to its customers. Since “lugawan” is a

common business among the locals, the proponents have decided to come up with something new that does

not only satisfies its customers, but also provides a new taste bud-gratifying experience. Lugaw Ala Eco

proffers a new and satisfying experience for patrons of all ages.

1
II. Description of the Business

a. Overview of the Industry

Lugaw which is a popular mirienda for all seasons is much known to every Filipinos because of

its simply but very delicious taste. This type of food is so easy tore prepare and only requires rice,

water, and salt. The food service market in the Philippines is highly driven by the rise in value-

conscious consumers willing to try new restaurants with a wide range of menu options, including

interesting international and local cuisines, which also cater to increasingly busy lifestyles.

b. Overview of the Company

Lugaw-Ala-Eco is a sole proprietorship which is owned and run by one natural person and in

which there is no legal distinction between the owner and the business entity. It is located at

Romano St., San Jose City Nueva Ecija. Our business will consists Owner, Cashier, Cook,

Waiter, and Dishwasher.

Logo

The chef with holding a wheat represent rice that will be made a Lugaw. Then the name came

from the name of JERICHO DACOCO.

Mission

To be the most inspiring fast food chain offering innovative, better quality food products as well as

maintaining sanitation and affordable yet satisfying food taste that everybody enjoy and provide inspiration

and encouragement to all potential business entrepreneurs.

2
Vision

Lugaw-Ala-Eco aims to become a enjoyable high quality and affordable snack items for all Filipinos

nationwide.

Location

Goals/Objective

One of the main goals ofLugaw-Ala-Eco is to provide employment opportunities for the local community

where stores/franchise are based.

Description of the Product/Service

Lugaw Ala Eco is a sole proprietorship which is owned and run by one natural person and in

which there is no legal distinction between the owner and the business entity. The owner will pay

personal income tax on profits earned from the business. The business is a sole proprietorship

because it will start as a small business and it revolves around simplicity.

The advantages of sole proprietorship are complete control and decision-making power over

the business, sale or transfer can take place at the discretion of the owner, no corporate tax payments,

minimal legal costs, and few formal business requirements. The disadvantages are the owner of the

business can be held personally liable for the debts and obligations of the business, all

responsibilities and business decisions fall on the shoulders of the manager, and investors would not

usually invest in sole proprietorships.

A. Organizational Chart

Functional organization is the structure of the business with managers at the top and most

employees at the bottom, organized by the tasks they performed. The authority is given from the top

3
 to bottom. Rules and regulation will be maintained so that it will have control in the business. Figure

1 shows the organizational chart.

Owner/Manager

Cashier Cook Waiter Dishwasher

(1) (2) (2) (1)
Figure 1. Organizational Chart

B. Number of Personnel Required

Table 1. Number of Personnel Required for Each Position

Position Number of Personnel Required

Cashier 1
Cook 2
Waiter/Waitress 2
Dishwasher 1
Total 6

C. Job Analysis

1. Position Title: Owner/Manager

Job Description

4
  oversees the activities of workers

 hires, trains and evaluates new employees

 ensures that the business is on track to meet its financial goals

2. Position Title: Cashier

Job Description

 assists customers in the in-store check-out process

 rings up sales, bags items, requests price checks, honors coupons, collects payment

and gives appropriate change

 counts the contents of the cash register drawer at the end of each working hours

 required to work for ten hours a day

 must be willing to exceed working hours in case of situations where overtime is

needed

Job Specification

 high school diploma or its equivalent

 with or without experience in the field or in a related area (a minimum of 2 years will

be an advantage)

 has knowledge of commonly-used concepts, practices and procedures within a

particular field

 works under immediate supervision of supervisor or manager and must rely on

instructions

 primary job functions do not typically require exercising independent judgment

 abides by the pre-established guidelines to perform the functions of the job

 successful candidate will play a fundamental role in achieving our customer

satisfaction and revenue growth objectives

5
3. Position Title: Cook

Job Description

 sets up workstations with all needed ingredients and cooking equipment

 prepares ingredients to use in cooking (chopping and peeling vegetables, cutting meat

and others)

 has the ability to cook food in various utensils or grillers

 checks food while cooking to stir or turn, ensures great presentation by dressing

dishes before they are served, keeps a sanitized and orderly environment in the

kitchen, ensures all food and other items are stored properly, checks quality of

ingredients, monitors stock, and places orders when there are shortages

 may also help in serving food to the customers after ensuring that his/her tasks has

been finished

 required to work for ten hours a day and must be willing to exceed working hours in

case of situations where overtime is needed

Job Specification

 proven experience as a cook for at least two years

 has experience in using cutting tools, cookware and bakeware

 has knowledge of various cooking procedures and methods (grilling, baking, boiling,

and frying)

 has the ability to follow all sanitation procedures and ability to work in a team

 having a high school diploma or equivalent diploma from a culinary school will be an

advantage

4. Position Title: Waiter/Waitress

Job Description
6
  greets and escorts customers to their tables, presents menu and provides detailed

information when asked (for example: about portions, ingredients or potential food

allergies)

 prepares tables by setting up linens, silverware and glasses

 informs customers regarding the business’ food specialties

 offers menu recommendations upon request, offers additional products when

appropriate, takes accurate food and drink orders using order slips or by memorization

 communicates order details to the kitchen staff, serves food and drink orders

 checks dishes and kitchenware for cleanliness and presentation and report any

problems

 arranges table settings and maintain a tidy dining area

 carries dirty plates, glasses and silverware to the kitchen for cleaning

 meets with restaurant staff to review daily specials, changes on the menu and service

specifications for reservations (for example: parties)

 tasked to clean the establishment

 Required to work for ten hours a day and must be willing to exceed working hours in

case of situations where overtime is needed.

Job Specification

 proven work experience as a waiter or waitress for six months

 has sense of attentiveness and patience towards customers

 should embody excellent presentation skills, strong organizational and multitasking

skills, with the ability to perform well in a fast-paced environment, active listening

and effective communication skills

 has the ability to work in a team

 has flexibility to work in shifts

7
  Having a high school diploma or food safety training is a plus.

5. Position Title: Dishwasher

Job Description

 washes specific items by hand (for example: wooden cutting boards, large pots and

kitchen utensils)

 stores clean dishes, glasses and equipment appropriately

 sets up workstations before meal preparation begins

 ensures that there are always enough clean dishes, glasses and utensils, especially

during peak hours, maintains cleaning supplies stock (for example: detergents)

 place orders when necessary

 checks and removes garbage regularly and sanitizes the kitchen area, including the

floor

 can assist the cook in preparing the ingredients for cooking and help in serving food to

the customers

 tasked to clean the establishment

 Required to work for ten hours a day and must be willing to exceed working hours in

case of situations where overtime is needed.

Job Specification

 has a work experience as a dishwasher

 has an ability to follow instructions and help with various tasks, as needed

 has time management skills and can work under pressure

 Attentive to detail and sanitation rules having a high school diploma is a plus.

8
III. MARKETING STRATEGIES
A. Description of the Market

The “Lugaw Ala Eco” is located at San Jose City, Nueva Ecija, and a fast growing city.

Lugaw Ala Ecor’s competitors are Lugaw Network, Cris Hot goto and other businesses that offer

porridge. The business targets to attract tricycle drivers, bikers and construction workers. The

“Lugaw Ala Eco” will offer porridge with unique toppings, such as adobo and longganisa. The

business focuses on providing the product in the morning and for morning snack.

Determination of the Market

Number of prospect in the target Market 50 individuals

Frequency of purchase per month (average) 30
Total number of purchase 1,500
Average payment per purchase 50
Projected total industry sales per year 75,000
Percentage the firm can attain 15%
The Firm’s Market Share 11,250

Positioning Strategy

Table 10. Competitor’s Analysis based on 4P’s of Marketing

Indirect Product Price Place Promotion

Competitors
Lugaw Offers different Product prices Located at Advertises the
Network varieties of ranges from Bonifacio Street business through a
porridge. P12.00 to P45.00 Corner Cervantes public Facebook
Strees, San Jose page and through
City which is a word-of-mouth.
bit farther from
the town proper.
Cris Hot Goto Offers different Product prices Located at R. Advertisement is
varieties of ranges from Eugenio Street, through a
porridge and P20.00 to P60.00 San Jose City Facebook page
silog products. which is one of and through word-
the closest streets of-mouth.
at the center of
the city.
9
Chow Mae Offers different Product prices Located inside It only advertises
varieties of ranges from the San Jose City through the word-
porridge. P15.00 to P30.00 Public Market, of-mouth.
where most
people usually
go every day.
Aling Nelly’s Aside from Product prices Located inside It only advertises
Kainan porridge, it also ranges from the San Jose City through the word-
offers rice meals. P15.00 to P50.00 Public Market, of-mouth.
where most
people usually
go every day.

B. Evaluation of the 4 P’s of the Business

Product/Service

Lugaw Ala Eco is a type of food business that offers “lugaw” topped with famous Filipino

viands, fried adobo and longganisa, instead of the typical egg, chicken or cow tripe.

Price

The price variations of the products are based on customer-perceived pricing strategy. The

pricing is very strategic because of its affordability. Anyone can avail the food for as low as 30 to 40

pesos per serving depending if it is plain or with topping/s.

Place

Lugaw Ala Eco is located at Romano Street, City of San Jose, NuevaEcija. This location is

strategic because there are already a lot of people who are studying and working within the area.

Lugaw Ala Eco is located in front of Saint Joseph School, at the back of San Jose City Hall.

Promotion

Creating a Facebook page is one of the promotional activities of Lugaw Ala Eco. Giving

flyers is another in which business information (business hours, address, contact

number,andFacebook page) are stated.

MATERIALS

10
A. Machineries and Equipment

Presented on Table 1 are the machineries and equipment that will be available in the

establishment.

Table 1. Machineries and Equipment

Machineries and
Image Description
Equipment

A refrigerator is used to
store ingredients to be used
Refrigerator in cooking. Due to its
temperature, the
ingredients last longer.

An air conditioner is used

to cool down places
Air conditioner
making everyone feel
comfortable and at ease.

A generator is used as a
Generator substitute when there is a
power interruption.

A stove is used to cook

Stove
dishes.

11
 Table 1.(continued…)

Machineries and
Image Description
Equipment
A speaker is used as a tool
for playing music. It
amplifies the sound coming
Speakers
from the source so that
many people can hear the
music being played.
A water dispenser is very
useful due to its dual
Water Dispenser function. It can serve both
hot and cold water. It is
also easy to use.

B. Kitchen Ware

Presented on Table 2 are the kitchen wares that will be available in the establishment.

Table 2. Kitchen Ware

Kitchen Ware Image Description
Table 2. A dish rack is used to
(continued…) store kitchen utensils
Dish Rack
Kitchen Ware Image such as plates, bowls and
Description
sauces.

A tray is used to organize

condiments onA rice container
tables to is used
Condiment Tray aid customerstoinstore rice. It can help
adjusting the taste of the
Rice Container prevent insects from
food.
destroying the rice
grains.
A condiment container
Condiment Container holds condiments such as
(Solid) pepper, chili powder and
fried garlic.

12
 A condiment container
Condiment Container for liquid holds
condiments like soy
(Liquid) sauce, fish sauce and
vinegar.

A hand towel is used to

Hand Towel dry hands for preparing
food.

A food warmer is used to

help preserve the warmth
Food Warmer
of food so they stay fresh
and clean.

Cooking Pot A cooking pot is used as

a container while cooking
(for toppings) the food.

Table 2. (continued…)

Kitchen Ware Image Description

A knife holder holds the

knives to ensure safety
Knife Holder and to keep the knives
clean and out of reach of
children.

A ladle hanger is where

the ladles will be placed
Ladle Hanger
for easy access in
cooking.

13
 A tissue holder is used to
hold an amount of tissue
Tissue Holder
to be used commonly by
customers.

A doormat is used to
reduce the amount of dirt
Doormat entering the place by
stomping the feet on the
mat.

A tupperware is used to
Tupperware store food so that it will
not be spoiled.

A chopping or cutting
board is used to aid in
Chopping Board
cutting ingredients for
food preparation.

Table 2. (continued…)

Kitchen Ware Image Description

A knife is used in cutting

Knives
or chopping ingredients.

An apron is used to
Apron protect the cook from
stains.

14
 A mortar and pestle is
used to mash, grind or
Mortar and Pestle
crush ingredients easily
such as garlic and pepper.

A strainer is used in
Strainer filtering unwanted
substances from the food.

A cooking scissor is used

to easily cut plastics and
Cooking Scissor
other ingredients in
cooking.

Table 2. (continued…)

Kitchen Ware Image Description

A plates is commonly
Plates used in holding the food
or ingredients.

Cooking Pot A large and deep cooking

pot is used in cooking
(for Lugaw) large amount of food.

15
 A frying pan is used in
frying food like
Frying Pan
longganisa, egg and other
food.

A ladle is used in stirring

Ladle or flipping the
ingredients being cooked.

A potholder is necessary
Potholder in preventing the cook
from burning their hands.

Table 2. (continued…)

Kitchen Ware Image Description

A cooking trivet is used

to hold hot pots so they
Cooking Trivet
do not touch tables and
put dirt on it.

A serving tray is used to

Serving Tray hold and carry food from
one place to another.

A hairnet is used to hold

hair and its short strands
so they will not hamper
Hairnet
in preparing food and
they will not transfer any
dirt to the food.

16
 A plastic cup is used in
Plastic Cup
drinking liquid drinks.

A drinking glass rack

Drinking Glass Rack will help hold drinking
glasses.

A spoon and fork

Spoon and Fork container is used to store
Container spoon and fork to keep
them clean and in place.

Table 2. (continued…)

Kitchen Ware Image Description

A water pitcher is used to

Water Pitcher
hold water.

A bowl is used to hold

Bowls
food with sauce or soup.

A saucer is used to hold

Saucer
small amount of food.

17
 A spoon and fork is a
Spoon and Fork
tool in eating food.

18
C. Cost of Machineries and Equipment

Presented on Table 1 are the costs of machineries and equipment of the establishment.

Table 3. Cost of Machineries and Equipment

Machineries Price Total Cost

Supplier Quantity
and Equipment (Php) (Php)

Refrigerator S&J Marketing 1 17,550 17,550

Air conditioner Savemore San Jose 2 4,999 9,998
New Vicente Tan
Generator 1 32,000 32,000
General
JMerchandise
and F Department
Stove 2 1,499 2,998
Store
Speaker 1 1,599 1,599
Savemore San Jose
Water Dispenser 1 4,699 4,699
Total Amount 68,844

D. Cost of Kitchen Ware

Presented on Table 2 are the costs of kitchen ware of the establishment.

Table 4. Cost of Kitchen Ware

Price Total Cost

Kitchen Ware Supplier Quantity
(Php) (Php)
Dish Container 1 1,199 1,199
Rice Container 2 500 1,000
Condiment Tray 7 9.75 68.25
Condiment
Container J and F Department 7 sets 59/set 413
(liquid) Store
Condiment
7 sets 65/set 455
Container (solid)

Hand Towel 10 45 450

Table 4. (continued…)
Kitchen Ware Supplier Quantity Price Total Cost

19
Food Warmer 5 250 1,250
Cooking pot
3 299 897
(toppings)
Knife Holder 1 80 80
Ladle Hanger J and F Department 1 25 25
Tissue Holder 7 26 182
Store
Doormat 3 35 105
Tupperware 10 35 350
Chopping Board 3 105 315
Kitchen Knife 7 50 350
Butcher Knife 2 150 300
Apron COEN FASHION 3 25 75
& General
Mortar and
Merchandise 2 60 120
Pestle
Strainer 2 133 266
Cooking Scissor 2 65 130
Plates 30 40 1,200
Cooking pot J and F Department
2 899 1,798
(lugaw) Store
Frying pan 3 435 1,305
Ladle 7 85 595
Potholder 8 8 64
COEN FASHION
Cooking Trivet & General 4 60 240
Merchandise
Serving Tray 5 120 600
Hairnet 3 10 30
Plastic Cup J and F Department 30 12 360
Spoon and Fork Store
2 78 156
Container
Water Pitcher 8 30 240
COEN FASHION
Bowls & General 30 32 960
Merchandise
Saucer J and F Department 30 25 750
Spoon and Fork Store 50 pairs 45/pack 180
Total Amount 16,508.25

20
E. Cost of Furniture and Fixtures

Presented on Table 5 are the costs of furniture and fixtures of the establishment.

Table 5. Cost of Furniture and Fixtures

Furniture Total
Price
and Supplier Image Quantity Cost
(Php)
Fixtures (Php)
545/
J and F table
Tables and
Department 7 pairs 4,830
Chairs 145/
Store
chair

White Board
Pandayan
Marker and 1 27.75 27.75
Bookstore
Eraser

Pandayan
Menu Board 2 233 466
Bookstore

Storage Box 1 400 400

Savemore
Notebook 1 21 2,760
San Jose

Wall clock 1 310 1,194

Total
9,277.75
Amount

F. Cost of Raw Materials

Presented on Table are the costs of raw materials of the business.

21
Table 6. Cost of Raw Materials
Quantity Total
Price Cost per
Materials Supplier per
(Php) Year
month (Php)
A. Direct Materials
Rice AlingMely’s Rice 1 sack 40/kilo 24,000
Rice (Malagkit) Retailer 1 sack 60/kilo 36,000
Pork 48 kilos 200/kilo 115,200
San Jose Public
Longganisa Market 24 kilos 190/kilo 54,720
Tofu 72 blocks 24/block 20,736
Sub-Total 250,656
B. Indirect
Materials
Fish Sauce 1 liter 50.5/liter 606
Friendship
Soy Sauce 2 liters 37.25/liter 894
Supermarket
Vinegar 1 liter 30/liter 360
San Jose Public
Salt 2 kilos 20/kilo 480
Market
Magic Sarap 2 packs 33/pack 792
Pepper Friendship 3 packs 30/pack 1,080
Chili Powder Supermarket 1 pack 30/pack 360
Cooking oil 4 liters 97/liter 4,656
Onion San Jose Public 1 kilo 80/kilo 960
Garlic Market 1 ½ kilo 100/kilo 1,800

22
 Table 6. (continued…)

Quantity Total
Price Cost per
Materials Supplier per
(Php) Year
month (Php)
Ginger San Jose Public 1 kilo 60/kilo 720
Spring Onions 24 bundles 10/bundle 2,880
Plain Flour Market 24 kilos 44/kilo 12,672
Aguanovo Water 120
Mineral Water 30/gallon 43,200
Station gallons
Table Napkin J and F Department 12 packs 56/pack 8,064
Toothpick Store 3 packs 13.5/pack 1,800
Plastic bag San Jose Public 2 packs 30/pack 720
Brown bag Market 2 packs 40/pack 960
Sub-Total 83,004
Total Amount 385,500

G. Other Supplies

Presented in Table are the other supplies of the establishment.

Table 7. Other Supplies

Other Supplies Image Description

A liquid petroleum gas is

Liquefied Petroleum used as fuel in heating
Gas appliances and cooking
equipment.

A mop will be used to

Mop clean the floor thoroughly
to remove stains.

23
 Table 7. (continued…)

Other Supplies Image Description

A pail and dipper will be

Pail and Dipper used to store water in the
comfort room.

A dishwashing liquid and

Dishwashing Liquid and sponge will be used in
Sponge cleaning the dishes and
kitchen utensils.

A broom with dustpan is

Broom and Dustpan used in cleaning aids to
clean dirty floors.

A trash bin is used to

segregate trash. It will hold
Trash Bin
the trash so the
surroundings will be clean.

H. Cost of Other Supplies

Table shows the costs of other supplies.
Table 8. Cost of Other Supplies
24
 Price Total Cost
Quantity
Other Supplies Supplier per Year
per Month (Php) (Php)
Gas Nieto LPG 1 600 7,200
Mop Center 1 169 2,028
Pail and Dipper 1 pair 87/pair 1,044
Dishwashing
Liquid and Savemore San 1 pair 67/pair 804
Sponge Jose
Broom and
1 set 159/set 1,908
Dustpan
Trash bin 2 pairs 105/pair 2,520
TotalAmount 15,504

Table 9. Summary (Inventories and Other Supplies)

Inventories and Other Supplies Cost (Php)
Direct Materials 302,496
Indirect Materials 83,004
Other Supplies 15,504
Total 401,004

I. Cost of Labor
Presented in Table are the costs of labor.
Table 10. Cost of Labor

Name Rate per month Quantity Yearly Cost

(Php) (Php)
Cook 9,120 2 218,880
Cashier 8,400 1 100,800
Waiter 7,896 2 189,504
Dishwasher 7,896 1 94,752
Total 603,936
J. Utilities

Presented on Table are the utilities that will be needed for the establishment.

Table 11. Utilities

Utilities Description Source/s Unit Cost Consumption
per Year Rate
(Php)
Power Supply For lighting SAJELCO 21,629.76 12 kilowatts per
purposes and hour
for electronic
equipment.
25
 Water Supply Use for San Jose 3,240 15 cubic meter
cleaning the Water
utensils and District
comfort
rooms.
Communication It provides PLDT 15,600 Unlimited
System network
connectivity
that allows
the users to
access
internet
services.
Total Amount 40,469.76

Table 12. Total Production Cost

Total Production Cost (Php)

Machineries and Equipment 68,844
Kitchen Ware 16,508.25
Furniture and Fixtures 9,277.75
Total 94,630

26
27
VI. FINANCIAL STRATEGY
A. Project Cost
Table 13. Project Cost
Machineries and Equipment P 68,844
Kitchen Ware 16,508.25
Furniture and Fixtures 9,277.75
Inventories 333,660
Other Supplies 15,504
Cash on Hand 20,000
Cash in Bank 80,000
Total P 543,794

B. Financers
Owner P 543,794

C. Target Costing
Table 14. Target Costing
Direct Materials P 250,656

Labor 503,136

Overhead Indirect Materials 83,004

Depreciation Expense 18,926

Utilities 40,469.76

Rent Expense 25,000

Subtotal P 921,191.76

Period cost

Administrative expense P 100,800

Subtotal P 100,800

Grand Total P 1,021,991.76

D. Unit Cost

28
120,000units
=60,000 sets
2
P 1,021,991.76
Unit Cost = =P 17.03/set
60,000 sets
E. Mark up cost
Selling price- Unit cost
P30-P17.03= P12.97

Financial Statement

Assumptions:

1. The financial needs of the business will come from the personal savings of the owner.

2. Production is equal to sales.

3. Sales increases 5% every year.

4. All sales is on a cash basis

5. Profit and losses are shouldered by the owner.

6. Direct Materials increases 5% annually in proportion to production.

7. Purchases is 105% of materials used.

8. Salaries increases 2% annually.

9. Utilities increases 5% annually.

10. Depreciation is 20% annually.

11. Tax is 10% payable the following year.

12. No additional investment nor withdrawal for 5 years.

13. The Mark-up is 43.23%

29
30
Table 15. Income Statement
2018 2019 2020 2021 2022
(Php) (Php) (Php) (Php) (Php)
Sales 1,800,000 1,890,000 1,984,500 2,083,725 2,187,911.25 Table 16. Cash
Cost of Sales: Flow
Direct Materials (250,656) 2018(263,188.80)2019 2020
(276,348.24) 2021
(290,165.65) 2022
(304,673.93)

Direct Labor (503,136) (Php)

(513,198.72)(Php) (Php)
(523,462.69) (Php)
(533,931.95) (Php)
(544,610.59)
Cash Flow From Operation
Overhead (1) (142,399.76) (144,423.25) (146,547.91) (148,778.81) (151,121.25)
Net Income 700,207.42 757,235.91 817,441.95 880,990.94 948,056.68
TOTAL COST (896,191.76) (920,810.77) (946,358.84) (972,876.41) (1,000,405.77)
Depreciation 18,926 18,926 18,926 18,926 18,926
Gross Profit 903,808.24 969,189.23 1,038,141.16 1,110,848.59 1,187,505.48
Inventory (2) (12,532.80 (13,159.44) (13,817.41) (14,508.28) (15,433.70)
Administrative expense (100,800) ) (102,816) (104,872.32) (106,969.77) (109,109.16)
Tax expense
Rent Liability (25,000) 77,800.82
(25,000)84,137.32 90,826.88
(25,000) 97,887.88
(25,000) 105,339.63
(25,000)
TaxIncome
Net Payment
before tax 778,008.24 (77,800.82) 908,268.84
841,373.23 (84,137.32) (90,826.88)
978,878.82 (97,887.88)
1,053,396.32
NetLiability
tax Cash Flow From Operation
(77,800.82) 784,401.44 769,338.97 (90,826.88)
(84,137.32) 829,240.10 892,469.66
(97,887.88) 959,000.74
(105,339.63)
Cash
Net Flow After
Income Fromtax
Investing 700,207.42 757,235.91 817,441.95 880,990.94 948,056.68
Purchase Of:

Machineries And Equipment (68,844) 0 0 0 0

Furniture And Fixtures (16,508.25 0 0 0 0

)

Kitchen Ware (9,277.75) 0 0 0 0

Net Cash Flow From InvestingActivities (94,630) 0 0 0 0

31
Table 16. (Continued…)
2018 2019 2020 2021 2022
(Php) (Php) (Php) (Php) (Php)
Cash From Financing

Contribution From Owners 543,794.00 0 0 0 0

Net Cash Flow From Financing 543,794.00 0 0 0 0

Activities

Net Cash Flow 1,233,565.4 769,338.97 829,240.10 892,469.66 959,000.74

4

Add: Cash Beginning 0 1,233,565.44 2,002,904.41 2,832,144.51 3,724,614.16

Cash Ending 1,233,565.4 2,002,904.41 2,832,144.51 3,724,614.16 4,683,614.90

4

Table 17. Owner's Equity

Owner's Equity 2018 2019 2020 2021 2022
(Php) (Php) (Php) (Php) (Php)
Beginning Capital 543,794.00 1,244,001.42 2,001,237.32 2,818,679.28 3,699,670.22
32
 +/- Net Income/Loss 700,207.42 757,235.91 817,441.95 880,990.94 948,056.68

Additional Income 0 0 0 0 0

Withdrawal 0 0 0 0 0

Ending Capital 1,244,001.42 2,001,237.32 2,818,679.28 3,699,670.22 4,647,726.90

Table 18. Balance Sheet

2018 2019 2020 2021 2022
(Php) (Php) (Php) (Php) (Php)
Cash 1,233,565.44 2,002,904.41 2,832,144.51 3,724,614.16 4,683,614.90

Inventory (2) 12,532.80 25,692.24 39,509.65 54,017.93 69,451.63

Current assets 1,246,098.24 2,028,596.65 2,871,654.16 3,778,632.10 4,753,066.53

Machineries and Equipment (3) 55,075.20 41,306.40 27,537.60 13,768.80 0

Kitchen ware (4) 13,206.60 9,904.95 6,603.30 3,301.65 0

Furniture and Fixture (5) 7,422.20 5,566.65 3,711.10 1,855.55 0

Non-current assets 75,704 56,778 37,852 18,926 0

33
Total assets 1,321,802.24 2,085,374.65 2,909,506.16 3,797,558.10 4,753,066.53

Tax payable 77,800.82 84,137.32 90,826.88 97,887.88 105,339.63

Total liability 77,800.82 84,137.32 90,826.88 97,887.88 105,339.63

Owner’s equity 1,244,001.42 2,001,237.32 2,818,679.28 3,699,670.22 4,647,726.90

Total Liability and owner’s equity 1,321,802.24 2,085,374.65 2,909,506.16 3,797,558.10 4,753,066.53

34
Lugaw Ala Eco
Financial Analysis and Ratios
2018-2022

2018

Profitability Ratios

Gross Profit Rate 903,808.24 = 0.50

1,800,000

Net Profit Margin 2019

700,207.42 = 0.39
1,800,000
Profitability Ratios

Liquidity Ratio
Gross Profit Rate 969,189.23 = 0.51
1,890,000
Working Capital 1,246,098.24
+ 77,800.82
1,323,899.06
Net Profit Margin 757,235.91 = 0.40
1,890,000
Current Ratio 1,246,098.24 = 16.02
77,800.82
Liquidity Ratio  
Profitability Ratio
Working Capital 2,028,596.65
+ 84,137.32
Return on Asset 700,207.42
2,112,733.97 = 0.53
1,321,802.24

Current Ratio 2,028,596.65 = 24.11

Return on Equity 84,137.32
700,207.42 = 0.56
1,244,001.42  
Profitability Ratio

Return on Asset 757,235.91 = 0.36

2,085,374.65

Return on Equity 757,235.91 = 0.38

2,001,237.32

35
 2020

Profitability Ratios

1,038,141.1
Gross Profit Rate 6 = 0.52
1,984,500

Net Profit Margin 817,441.95 = 0.41

1,984,500

Liquidity Ratio

2,871,654.1
Working Capital 6
+ 90,826.88
2,962,481.0
4

2,871,654.1
Current Ratio 6 = 31.62
90,826.88
 
Profitability Ratio

Return on Asset 817,441.95 = 0.28

2,909,506.1
6

Return on Equity 817,441.95 = 0.29

2,818,679.2
8

36
 2021

Profitability Ratios

Gross Profit Rate 1,110,848.59 = 0.53

2,083,725.00

Net Profit Margin 880,990.94 = 0.42

2,083,725.00

Liquidity Ratio

Working Capital 3,778,632.10

+ 97,887.88
3,876,519.98

Current Ratio 3,778,632.10 = 38.60

97,887.88
 
Profitability Ratio

Return on Asset 880,990.94 = 0.23

3,797,558.10

Return on Equity 880,990.94 = 0.24

3,699,670.22

37
 2022

Profitability Ratios

Gross Profit Rate 1,187,505.48 = 0.54

2,187,911.25

Net Profit Margin 948,056.68 = 0.43

2,187,911.25

Liquidity Ratio

Working Capital 4,753,066.53

+ 105,339.63
4,858,406.16

Current Ratio 4,753,066.53 = 45.12

105,339.63

Profitability Ratio

Return on Asset 948,056.68 = 0.20

4,753,066.53

Return on Equity 948,056.68 = 0.20

4,647,726.90

38
 .
VII. SOCIO-ECONOMIC STRATEGY

A. Economy

Lugaw Ala Eco will be beneficial to the economy in the sense that it provides possible

employment and income to the mass. The business will be hiring workers for its possibility to

operate. The project will also contribute to the country’s Gross Domestic Product since it is a product

produced in the country.

B. Government

Lugaw Ala Eco is an establishment that will fulfill necessary requirements upon its operation.

To continue its transaction, it must conform what the government imposes such as collection of taxes

to the business. It will be beneficial to the government in the way that the business will be paying

taxes regularly which the government can use in some of its project in the future that will benefit the

mass.

C. Customers

The establishment, Lugaw Ala Eco, will also benefit the customers which are the direct

beneficiaries. Especially, those busy ones such as tricycle drivers, and government and private

employees who skip their breakfast just to go to work early. With a hot served lugaw, customers will

be satisfied and will be more productive all throughout the day.

D. Employees

Lugaw Ala Eco will benefit its employees by providing them a source of income. The

establishment will be using incentives and benefits for the development of the quality of the

standards of living of the employees. Through that, employees will feel that they are important and

will have a big role for the success of the business.

39
E. Proponents

The proponents will also benefit from the business. Aside from the income from it, the

business will also require the proponents to be more sociable. Through that, the proponents will gain

new friends and will improve social well-being.

40