SQUEEZE DELIGHT

A Business Plan

Submitted to the Faculty of Pamantasan ng Cabuyao

Katapatan Homes, Cabuyao Laguna

In Partial Fulfillment of the Requirements for the Subject

The Entrepreneurial Mind

BSBA Marketing Management

By

Camas, Justine Audrae

Catellano, Alen

Basa, Jhon Villy

Bautista, Jerome

Esquilona, Ashly

Garcia, John Henry

 March 2019

I. EXECUTIVE SUMMARY

The Squeezed delight is a start-up business venture owned by general partnership of students

of BSBA marketing from Pamantasan ng Cabuyao for the purpose of providing a homemade and

quality food. The entrepreneurs had been observe the most common problem of students in

Pamantasan ng Cabuyao which is spending their money to mostly to food that are not healthy

enough to sustain their energy for the whole day. According to our survey 3 out of 10 students

have their breakfast while the rest, leaves their houses without having the most important meal of

the day. This may affect their academic performances and their health as well. And for that

Squeezed delight is a good example for quite trendy foods these days these are so-called “To-go”

foods, affordable and it is a good source of energy throughout the day.

Our target customers were primary students since half of the population in the area where

students of Pamantasan ng Cabuyao. The business will construct a stall type store in front of

University for easy access to our store. The owners chose to place their business outside the

university so that they can attain their objectives to pinpoint all the laborers and students within

the range of location and decided to market within weekdays.

The type of production that the business will be performing is Just In Time, since the

rationale of the business is to serve a freshly ovened food to people who are always rushing to

make it on school without eating breakfast and workers that are tired, giving them less time to

stern eye themselves. The business is more like a manufacturing type of business. They managed

their Inventory by checking it in every other day and listing what the customers sold; and to
maintain the efficiency within the inventories, “First In, First Out” (FIFO) will take place.

Whereas, whichever ingredient or inventory came first, it should be the first one as well to

consume so that there won’t be any leftovers or won’t be easily expired.

There are few potential competitors around the university that also has the same type of
production that performs “just in time”. But the business has become distinct to others because of
the product itself, and its taste that gives impact to customer’s buying preferences.

Based on the size of our market and our defined market area, our sales projections for the
first year are 180,000. We project a growth rate of 20% per year for the first two years. , since we
believe that there will be room for improvement of the business and by that means, the business
will surely accumulate additional profit. In the long run an assumption of at least another 20% of
growth will be obtain by the business, as the business begins to bear fruit in Philippine industry
in addition the business certainly establish new business and innovate other brands for
expansion.

II. BUSINESS DESCRIPTION SEGMENT

Squeezed delight is a food partnership business, generally own by six persons which has
legal structure of the business known as General Partnership wherein the capital and net income
will be equally divided among the owners. Moreover, the business will undergo processes such
as the approval of the permits that the city of Cabuyao and the Department of Trade and Industry
will sign in and release. The benefits will include the expansion from stalls to beanery, branding
and other approaches that will further define the success of the business.

The proprietors decided to establish the business in Pamantasan ng cabuyao since it has
an affluent area with a high rate of students and teachers spending their money in different food
stalls nearby, an ideal market for a food business such as squeezed delight. Our market research
has shown that seven out of ten students who go to school missed their most important meal of
the day, causes them to eat their breakfast during their lunch break or recess.
 While there are currently five food stalls, only three of these offer made-to-order.
Squeezed delight’s marketing strategy is to emphasize the importance of having a good
breakfast. As our slogan, “Delighten every squeeze and chomp” says, we offer food at the best
quality that can fill your tummy with delight. In our marketing, we will be emphasizing the
quality and handmade food we provide.

We will also offer some services, such as food delivery, where they can contact us
through email, fb messenger or visiting us on our website and our staff will surely deliver the
order on time. Allowing the consumers save their time while they are at school or in work.

The innermost aim of this business is to provide a food product needed by the consumers
in this era. Specifically, the company’s targeted prospects will be the 10% of the students’
population in the vicinity of Pamantasan ng Cabuyao. In effect, the universal partners will
equally handle all-round responsibilities internally and externally.

The legal structure of the business falls on universal partnership wherein the capital and
net income will be equally divided among the owners. Moreover, the business will undergo
processes such as the approval of the permits that the city of Cabuyao and the Department of
Trade and Industry will sign in and release. The benefits will include the expansion from stalls to
beanery, branding and other approaches that will further define the success of the business.

Apparently, manufacturing processes will be applied in the business such as the

combination of raw goods, a labor force and overhead. It will exist as a private sector in the
business industry which performs services and makes quality products in exchange for money.

In contrast, convenient stores located near the university might affect the quantity
demanded by the consumers daily. By any chance, the aforementioned dilemma’s after effect is a
bit of loss in sales. Yet if the case turns crucial, contingency plans and more competitive ways to
address occurring predicaments will be certainly executed.

Hence, this kind of business that offers an instant meal pops up due to a notice in public.
Whoever it may be, students and workers at field, at home, at offices, make sure that mealtime is
heavy and healthy. Satisfy growling stomachs, eat what’s beneficial to your body and take a
minute out of messy tables.
Product logo

Product Specifications

C
D

A. Pancake. The pancake will be cooked thin to have crisp on side. The pancake’s
purpose is to keep the other ingredients to stay in place since it is enclosed. Also the
pancake compliments with the variance of ingredients.
B. Ham. The ham is stripped in order for it to have exact taste, not much taste of ham
and not less taste of ham
 C. Hotdog. The hotdog it sliced cubely so that it will not taste much and also not to taste
less.
D. Egg. The egg is cooked scrambled type so that it will have the balance taste of egg
yolk and egg whites.

Squeeze delight is and taco-like shaped made of pancake stuffed with --, as a Filipino we
all knew that pancake is always present in our breakfast. The twist which the proprietors’
innovate is to fill the pancake with the foods that we see in the table of Filipino breakfast, it
includes: cubed hotdog, cooked ham and finally a fresh and hot scrambled egg.

Mission

The mission of the business is to delighten every rushing customer’s dining experience
by squeezing and taking chomps of our mouthwatering and quality food product. Offering
reasonably price for standard food and serve the freshest, most delicious breakfast quickly and
courteously in modern style. In terms of environment, the company aims to have attractive, eco-
friendly in clean surroundings and well-merchandised stores.

Vision

Squeeze Delight believes that the business will be known as the leading quick service
provider business not only in Philippines but also in every nation known in the world, while
delivering fresh, delicious breakfast and an exceptional experience. The business confidently
promise to change every Filipinos breakfast experience in a whole new level by quickly serving
the delightful healthy food.

III. MARKETING SEGMENT

The product is designed to satisfy customers’ hunger. With a proper discipline, it can be a
meal anytime a day. It has the quality over quantity as advantage regarding its other competitors.
A heavy meal that also tastes good and make you feel satisfied. The product promises as well to
replete and is good for customers that can’t have a proper meal at home due to lack of time to
prepare since they prioritized their works and duties first.
 Upon establishing the business, it already focused that the target market will be
consisting of the learning-centered students and business-minded employees. Since they are
highly committed on what they’re doing, they tend to forget eating at the right time. Also the
company targets all the people who craves for eating a healthy breakfast, it includes children and
aged people. The product will be needed by the target market since the product can solve the
dilemma being faced by the aforementioned consumers. They will be given less hassle to prepare
for their food that’s enough to replete their hunger.

To break down specific segmentation, the proprietors illustrate demographic profiling by

means of definite subjects:

 Children (age ranging from 5-10). The proprietors considers the youth to be
interested with healthy and mouthwatering kind of product. We guarantee the
satiation
 Learning-centered students (ages 15-22). Considering the fact that the
proprietors chooses to establish the business in front of universities specifically in
Pamantasan ng Cabuyao, the business focuses on teenage students or senior high
school students. As we conduct our initial research, the first subject of our product
appears to be the students, since they are the ones that rushes to go to school
without consuming breakfast. Students will definitely love our food product for
the reason that it is budget friendly for the students bearing in mind that there’s so
much expense in life of apprentice.
 Business business minded employees (ages 20 and above). The company
considers all employees and staffs to be target market as they are the ones who
needs to have a breakfast to start a tiring day of work.
 Family households. The business also focus on selling the product on any family
members. Basically all the Filipinos who wants to experience a new
dining/breakfast. We will provide a new culture for breakfast in Cabuyao city.
Business Location

Squeeze Delight can be localized near at court of Katapatan, Banay-Banay, Cabuyao

Laguna/ the proprietors decided to establish the business nearby the University to aim most of
the Target Market where most of the students and employees around.

The business ensure that the stall is noticeable in the eye of consumer to the stated
location, in order for us to effectively market our product. One thing is certain which is that the
business will surely solve most of the problem of the employees and the students around the
residence, which are the cravings of the people. The proprietors notice that some of the people
are not satisfied or completely wants to try new taste for their cravings. Therefore, the company
wants to help change their breakfast habit into happy tummy experience.

Through these concrete strategy, the brand squeeze delight will be commercialized across
nearby town and will surely be feasible for future. The company perceive the cravings of the
Cabueńos and the company will serve them passionately.

The owners intend to price the product base on the mark-up from materials costing used.
Materials costing consist of ingredients and for the packaging purposes. The suggested price of
the owners will be divided by the total cost of materials for the every piece of products that will
be produced. In line with this, the owners will be able to get the percentage of the mark-up cost
that they will be using for their pricing.

Towards the estimation of the potential units a consumer might buy, it may be frequently
bought as provided by the survey done by the owners. When it comes on the locale of the
business as well, both of the target markets by the business is near and that gives more chances
upon the repurchase of the product offered by the business. However, there are certain factors
that may affect the pricing of the business. Best example would be the macroeconomic factors
like inflation. This instance is definitely beyond the control of the business since it pertains to
economic aspect of the country.

While it may still have competitors, no matter how big or small they are, there’s still an
advantage between others as well. One major point where the business won over is the fact that
every owner has dedication on cooking so exploring and learning never stops. There will always
be an innovation for the customers to wait. Change is the only thing constant here in the world,
and even though the sales will not be consistent all throughout, the business will keep pace with
the changes until the business can finally secure a place towards the market as being the most
patronized by customers.

IV. MANAGEMENT SEGMENT

Organizational Structure

Alen R. Castellano Ashly C. Esquilona

Partner I Partner II
 John Henry K. Garcia Justin Audrae Camas
Product developer Human resource manager
m

The business will construct a Jhon Villy Basa

stall type store in Jerome Bautista
front of University for
Staff I Staff II
easy access to our store and serve the needs of the students. The proprietors decides that they will
not hire workers, owners of the business will also do the labor.

The owners chose to place their business outside the university so that they can attain
their objectives to pinpoint all the laborers and students within the range of location and decided
to market within weekdays.

The type of production that the business will be performing is Just In Time; the owners
believe that the Just In Time production is effective since the rationale of the business is to serve
a freshly ovened food to people who are always rushing to make it on school without eating
breakfast and workers that are tired, giving them less time to stern eye themselves. The owners
are expecting that many of the customers in the morning are always on the rush which makes
them a visible target of the business.

When it comes on the physical evidence of the store, it will be putting up with the means
of a stall type since it is easy to clean and at the same time it can easily be seen. Its locale will be
near the school. Additionally, maintenance will be expected to be done weekly since cleanliness
is a must for every business and sanitation should always be stern eyed.

For its early years of the run within the business, employees won’t be necessary since it’s
only starting with a small type of range of business. As expansion will take place, this will be the
necessary time for the business to employ now for the efficiency. However, there will be a
seminar wherein every precautionary will be given towards them so there will be consistency for
within the quality that the business promises on its product.

The pieces of equipment that the owners will be using are specialized equipment like
kitchen stove and frying pan. These will be the most essential for a business to operate. Minor
pieces of equipment needed will be the refrigerator and necessary kitchen tools like knife,
strainer, wire whisk, and many more.
 The business is more like a manufacturing type of business. They managed their
inventory by checking it in every other day and listing what the customers sold; and to maintain
the efficiency within the inventories, “First In, First Out” (FIFO) will take place. Whereas,
whichever ingredient or inventory came first, it should be the first one as well to consume so that
there won’t be any leftovers or won’t be easily expired.

V. OPERATION MANAGEMENT SEGMENT

 Firm Infrastructure collection of funds, administrative handling, planning

Human resource Recruiting staff, employee relations, training programs,

Margin
Management
Product Product innovations and improvement, communication
Development with customers

Procurement Purchase supplies and raw materials

Inbound Operations Outbound Marketing Service

Logistics Logistics And Sales
Margin
 Locally
Sales
purchase
enablement
 and open
raw
materials
communica
Firm Infrastructure  Inventory
tion with the
control
 customers
Preparati
 The squeezed delight management takes care to the contribution of money given  Customer
 on/produ
Serve
support
by the owners of the company on its first operation there will be a collection of directly
cing of
 Friendly
fund. to
product
environment
customer
 Familiarize the team with the customer needs, specifications, design targets, the
 Product
development process. quality
 Business owners will facilitate problem solving and collaboration. checking

Human resource management

 Trains and Encourage employees/staff for constant improvement

 Provide the staff with a vision of the project objectives.
  Conducting a meeting every week to regulate, communicate and gather information about
the progress of the business.

Product Development

 Gathering customer’s feedback for the purpose of innovation and product improvement
 Managing and processing information to minimize production cost.
 Protecting the company's knowledge base and maintaining production excellence are
sources of value creation.

Procurement

 Making product purchase agreements with suppliers

 Finding vendors and negotiating best prices.
 Includes purchasing of raw materials and getting the resources needs to operate.

Equipments and Materials

EQUIPMENT NAME DESCRIPTION

Used for frying foods over

moderate to high heat so
they should be thick enough
to conduct heat evenly

Frying Pan
 Resistant to acids, bases,
heat, and solvents, which
make them ideal for use with
a wide range of compound
Spatula

A source of direct heat for

cooking that is completely
encloses the fire inside its
iron body

Kitchen Stove

An open-top container used

primarily either to knead,
stir, whip, or whisk raw
ingredients for some dish

Bowl
Used to slice thin or thick
cuts of meat and other
ingredients
 Kitchen Knife

A durable board used as a

surface for foods being cut
with knives

Chopping Board

Used to measure an amount

of ingredient, either liquid or
dry, when cooking.

Measuring Spoons

used for handling things in a

fire without touching them
with the hands

Tong
 used for pouring liquid
substance especially for
cooking pancake

Laddle

used to manually mix and

beat eggs

Egg Beater

Used to extend the shelf life

of perishable foods and cool
food and drink that tastes
better cold.

Refrigerator
Raw Materials Description

steak is a meat generally

sliced

Ham

A hard-shelled oval thing

came from chicken which is
eaten as food

Egg

A usually whitish crystalline

solid, chiefly sodium
chloride, used extensively in
ground or granulated form as
a food seasoning and
preservative
Salt

Hotdog a food made from meat

trimmings
A seasoning used to sweeten
 the taste of the food

Sugar

is a powder made by
grinding raw grains, roots,
beans, nuts, or seeds

Flour

is a dairy product derived

from milk that is produced in
a wide range of flavors,
textures, and forms by
coagulation of the milk
protein
Cheese
The product is made out of
wheat flour, sugar, milk
ingredients, salt and wheat
gluten
 Pancake mix

A container for food

Mini White Elongated Paper Plate

A tool used for getting food

that you want

Plastic Spoon

Production Process

Ingredients:
  Egg
 Hotdog
 Ham
 Salt
 Sugar
 Cheese
 Flour
 Pancake mix

The Illustration shows the procedure of making Squeeze Delight:

Prepare all the ingredients needed First make the pancake mix by Prepare and heat the frying pan,
for the Squeezed delight. The combining the 2 eggs, 1 teas melt the butter in the pan, you
ingredients are the following: spoon of salt. 1 ½ cup of water can use cooking oil as an
1 Pancake Mix/flour and the pancake mix powder and alternative. Put the pancake mix in
1 tea spoon of salt mix well until the mixture the pan and cook it in low heat
5 eggs becomes thick. until it becomes golden brown.
1 ½ cup of water Flip the pancake when the
1 Butter/cooking oil bubbles burst. And set aside
4 pcs of Hotdog
1 pack of Ham

In the other pan, fry the hotdogs
ham and the rest of the eggs in
the ingredients earlier for the
pancake filling later.
Sliced the hotdog, ham into strips Put the ham, hotdogs and
and scrambled eggs. scrambled eggs into pancake and
I. fold the pancake into half, then
there you go you have the
Squeezed delight!

FINANCIAL SEGMENT

this segment aims to show a rundown of any aspects within the product proposal that
involves anything with the usage of money. Furthermore, it will be manifesting the
projected revenues and expenses if the business will be in operation for three years.

Product Costing

INGREDIENTS QUANTITY PRICE

Hotdog 1 pack 120.00
Eggs Half-tray 70.00
Ham 1 pack 120.00
Salt 1/8 kg 4.00
Sugar 1/4 kg 20.00
Pancake mix 5 boxes 100.00
Flour 50 grams 50.00
Cooking oil 2 bottles 40.00
Total 524.00
 The sum of product cost is amounting to 554.00. Consequently, the price of squeeze
delight per serving is equivalent to 15.00. The total cost of product can produce a quantity of 50
products per day. To explain further details the commence projection of calculated Total Cost
and Total Mark Up are shown below:

15 x 50 = 750

Total Sales: 750

Total Cost: 524

To calculate the Mark Up value, simply less the Total Sales to Total Cost of the product and if
we divide the sum in Total sales there we will have the result of Mark Up.

Difference∈Total Sales∧Total Cost

=Mark Up
Total Sales

750−524
=?
750

226
=0.30
750

0.26 x 100 = 30%

The total percentage of the Mark Up is 30%

750 x 30% = 225

Total Mark Up: 225

Projected Sales

Product Price Total Orders/ day

Squeeze Delight 15 50
Period Estimation Price Estimation Total Sales Estimation
Daily 15.00 x 50 products 750.00/day
Weekly 750.00 x 5 days 3750.00/week
Monthly 3750.00 x 4 weeks 15000.00/month
Yearly 15000.00 x 12 months 180000/year

In this projection, we illustrate how the business accumulates total sales estimation by
means of daily, which the number of total product is multiplied by the estimated sales. Weekly is
projected by multiplying daily sales into 5 days of transaction. While monthly is assessed by
total sales weekly times 4 weeks. Lastly, yearly is calculated by the product of total month sales
and 12 months operation.

Yearly projection of sales are illustrated below:

Year 1 Year 2 Year 3

180,000.00 216,000.00 259,200.00

An assumption of 20% increase in sales in year 2, since we believe that there will be
room for improvement of the business and by that means, the business will surely accumulate
additional profit. In the long run an assumption of at least another 20% of growth will be obtain
by the business, as the business begins to bear fruit in Philippine industry in addition the business
certainly establish new business and innovate other brands for expansion.

Profit and Loss Statement

Profit and loss statement is a financial summary that includes the revenues, costs, and
expenses incurred during a particular period, generally a fiscal year. P&L statement is
synonymous with the income statement. These records provides information about an
organization's capacity or failure to accumulate profit by expanding income or reducing costs.

List of Expense
 In regards with the advertising expense, the illustration below break down specific units
to easily examine the price of the following.

Advertising Expense

Promotional Tools No of Unit Unit Cost Prices

Website
Social Networking Sites
Free Free Free
(Facebook And
Instagram)
Flyers 250 0.50 500.00
Posters 50 30.00 1500.00

Signage 2 1500.00 3000.00

Total 5000

Since the business will conduct a stall type of business, the rent expense will be much
cheaper compare to any other expenses.

Rent Expense

Monthly Rent Expense 1,000.00

Annual Rent Expense 12,000.00

Moreover, as noticed below, the raw materials are specified into units in order to simply
monitor the costs of the materials and how it will affect the business’ financial statement.
 Raw Materials

Unit of
Raw Goods Total Unit Cost
Measurement
Hotdog Per pack/week 18760.00
Ham Per pack/week 18,330.00

Egg Per tray/day 15,000.00

Pancake Mix Per Pack/day 7200.00
Flour Per Sack/month 6000.00
Cooking Oil Bottle/week 4800.00
Total Cost 70,000.00

When it comes to contractual expense, the company also consider this as salaries expense
for the staffs of the organization.

Contractual Expense

Contractual Expense 70,000

 Squeeze Delight
Income Statement
Year 2019

Sales 180,000.00

Less: Expenses

Rent Expenses 12,000.00

Advertising Expense 5,000.00

Raw Materials 80,000.00

Salaries Expense 60,000.00

Total Expenses 157,000.00

Net Profit 23,000.00

Squeeze Delight
Balance Sheet
Year 2019

Assets

Cash 83,000.00

Accounts Recievable 20,000.00

Equipment 30,000.00

Total Asset 133,000.00

Liabilities

Accounts Payable 20,000.00

Notes Payable 20,000.00

Total Liabilities 40,000.00

Owner’s Equity

Alen and Ash, Capital 70,000.00

Add: Net Income 23,000.00

Total Owner’s Equity 93,000.00

Alen and Ash

Statement of Cash Flows
Year 2019

Cash flows from operating activities

Receipts
Sales Income 160,000.00
Increase in Accounts Payable 20,000.00
Increase in Notes Payable 20,000.00
Payments
Raw Materials (80,000.00)
Salaries Payment (60,000.00)
Rent Payment (12,000.00)
Advertising Payment (5,000.00)
Operating Expense (157,000)
Net cash from operating activities 43,000.00

Cash flows from investing activities

Payment for equipment (30,000.00)
Net cash from investing activities (30,000. 00)

Cash flows from Financing Activities

Investments of the owner 70,000
Net Cash from Financing Activities 70,000.00

Ending cash balance 83,000.00

Squeeze Delight
Income Statement
Year 2020

Sales 250,644.00

Less: Expenses

Rent Expenses 12,000.00

Advertising Expense 7,040.00

Raw Materials 78,578.00

Salaries Expense 65,300.00

Total Expenses 162,918.00

Net Profit 87,726.00

 Squeeze Delight
Balance Sheet
Year 2020

Assets

Cash 91,926.00

Accounts Recievable 63,500.00

Equipment 30,000.00

Total Asset 185,426.00

Liabilities

Accounts Payable 1,090.00

Notes Payable 3,610.00

Total Liabilities 4,700.00

Owner’s Equity

Alen and Ash, Capital 93,000.00

Add: Net Income 87,726.00

Total Owner’s Equity 180,726.00

Alen and Ash

Statement of Cash Flows
Year 2020

Cash flows from operating activities

Receipts
Sales Income 207,144.00
Payments
Decrease in Accounts Payable (18,910.00)
Decrease in Notes Payable (16,390.00)
Raw Materials (78,578.00)
Salaries Payment (65,300.00)
Rent Payment (12,000.00)
Advertising Payment (7,040.00)
Operating Expense (198,218.00)
Net cash from operating activities 10,926.00

Beginning Cash Balance 83,000.00

Ending Cash balance 91,926.00

Squeeze Delight
Income Statement
Year 2021

Sales 338,800.00

Less: Expenses

Rent Expenses 18,000.00

Advertising Expense 10,000.00

Raw Materials 101,978.00

Salaries Expense 92,982.00

Utilities Expense 14,200.00

Total Expenses 237,160.00

Net Profit 101,640.00

Squeeze Delight
Balance Sheet
Year 2021

Assets

Cash 150,100.00

Accounts Recievable 99,266.00

Equipment 50,500.00

Total Asset 299,866.00

Liabilities

Accounts Payable 7,500.00

Notes Payable 10,000.00

Total Liabilities 17,500.00

Owner’s Equity

Alen and Ash, Capital 180,726.00

Add: Net Income 101,640.00

Total Owner’s Equity 282,366.00

 Alen and Ash
Statement of Cash Flows
Year 2021

Cash flows from operating activities

Receipts
Sales Income 303,034.00
Increase in Accounts Payable 6,410.00
Increase in Notes Payable 6,390.00
Payments
Raw Materials (101,978.00)
Salaries Payment (92,982.00)
Rent Payment (18,000.00)
Advertising Payment (10,000.00)
Utilities Expense (14,200.00)
Operating Expense (237,160.00)
Net cash from operating activities 78,674.00

Cash flows from investing activities

Payment for equipment (20,500.00)
Net cash from investing activities (20,500.00)

Beginning Cash Balance 91,926.00

Ending Cash balance 150,100.00

In the perspective of the profit gained by the business, it can be therefore concluded that
within 3 year projection of operating business , it was able to gain a profit from its revenue. It
can never be determined that the business was losing its way for the reason of the sales made
which is indeed high.

With this, it just proves that the pricing is indeed correct to proportionate the cost of sales
done for every piece sold. And that the sales is enough to cover up the expenses done all
throughout by the business.

If the sales of your business is increasing over the time, one has to foresight that its
expenses will proliferate too since you are using more resources than ever.

Moreover, as noticeable on the balance sheet provided for the period of time, it
summarizes how much does the business has to give to cover up the liabilities. It states that
despite of what the company owns, it should still be able to face what it owes by not sacrificing
or giving up everything. All of the assets being handled by the business can indeed cover up the
liability. Talking it alone on the cash, it is enough to cover up the accounts payable done by the
business. This certainly proves that the business doesn't need to sell anything and that it can
cover up what it owes with the means of what it owns.

When it comes on the aspects of cash flow statement, it can be clearly seen that it reveals
a positive cash flow at all. It may turn out to have a negative on the feature of investing
activities; however, it was able not to make the cash on-hand be negative at all.