BUSINESS PLAN

Executive summary

Coconut is a versatile plant that can be used in a variety of ways. Almost

every portion of a freshly grown coconut, edible and non-edible, is used in some

way. Anything coconut can be found in a natural food store. Coconut water,

coconut sugar, and coconut oil, each of the coconut's various pieces is used for a

particular, and often multiple, product. As a result, oil competes with all other

coconut items for the coconut plant's easy availability.

Coconuts are a versatile plant that can be used to make a variety of items.

Anything from clothes to animal feed to beauty creams is made with coconut

products. Its edible flesh and delicious water are harvested, while its husk is used

for its hard fibers. Coconut water is a refreshing beverage that is both safe and

nutritious. The white flesh is a calorie-dense food that is widely used in South

Indian cuisine. Coconut honey can be made by extracting high-quality oil, protein,

and carbohydrates from grated wet coconut kernels. The oxidative rancidity of

the oil causes undesirable flavor changes in desiccated coconut. The residual

cake after the oil has been extracted is used as cattle food. The dried coconut

meat is known as copra, and it is the source of coconut oil, which is used in

massive amounts to make baking and confectionery fats. Desiccated coconut is

a common ingredient in the chocolate and confectionery industries. The hard

shell of the nut is removed, and the thin brown rind is removed as well.

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For millennia, coconut has been a staple in the diets of almost all Polynesians

and many Asians. It's used in cooking, as a flavoring, and in beverages. Young

people today are heavily reliant on conventional foods. Coconut has a strong

chance of growing in popularity in this market.

Coconut water – also known as buko juice or coco water – as one of the products

that has high potential abroad. It must be recalled that during the presidency of

Benigno Aquino III, he hailed coco water as one of the Philippines’ most

promising new export opportunities.

“One Stop Shop Food Coconut Products” is a business that sells coconut-based

food products. The researcher chose coconut since these fruits is a versatile

plant and it is abundant in the locale of the study.

The Philippine Coconut Authority (PCA), the government’s agency tasked

for the coconut industry, wrote in its website: “The fluctuation of domestic copra

market is cyclical and this is beyond the control of the PCA or any government

agency. This is because the domestic copra price is dependent to the coconut

oil price in the global market.

The global coconut oil price, on the other hand, is determined or affected by the

supply and demand situation of other vegetable oils (that is, oil palm, soybean,

rapeseed, sunflower, olive oil, etc.) in the international market. Though the

Philippines is the biggest exporter of coconut oil in the world, coconut oil is just

one of the many vegetable oils produced globally. As such, its price is greatly

affected by the movement of prices of other vegetable oils particularly the palm

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oil which is the biggest among the internationally-traded vegetable oils (35%) and

soybean oil, the second biggest vegetable oil (29%).

Market growth is propelled by the rise in demand for coconut water as an energy

drink. Active and health conscious consumers have shifted their preference

toward natural alternatives to caffeinated and sugar-based energy drinks. Hence,

the demand for coconut water as a natural energy drink is growing rapidly due to

its nutritional properties such as electrolytes and nutrients, which is expected to

drive the coconut products market growth.

Increase in use of coconut-based products in food and beverage applications is

expected to drive the market for coconut products in the future. Coconut products

are widely used as ingredients in variety of processed food products such as

cookies, cakes, pies, soups, salads, milkshakes, and ice cream. With growth in

consumption of processed food products, owing to the rise in urban population,

the demand for coconut products is expected to grow at a significant rate in near

future.

Name of the business

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 Description of the business

The proposed business will be registered under the name “One Stop Shop

Food Coconut Products”. The logo of the business is simple. It comprises the

words “Food Product” to emphasize what the entity sells. Also, the logo is in a

coconut shape that represents the main raw material used by the proposed

business.

Description of product

The proposed business offers coconut-based food products, mostly

deserts and afternoon snacks. The products are guaranteed natural, safe

and fresh since the proposed business is near to the coconut plantation.

Market

The major consumers of the proposed business will be those people

who loves coconut products and those who has sweet tooth.

Vision, mission and Values

The information below shows the mission, vision and values based on the

prepared product concept.

Vision: “we envision the satisfaction of our customer towards our product”

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 Mission: “To provide smile and enjoy to face of our customer on coconut

products.”

Values: “We value integrity as whole and as a team, passion to heart and

mind, honesty with all the actions we do, quality to give the customers the best,

accountability with each other, and leadership.”

Market plan

Product

Small 5.00

Big 10.00

Glass 50.00

Small Bowl 75.00

w/out chocolate 10.00

w/ chocolate 15.00

5 pcs 40.00

10 pcs 75.00

Small 5.00

Medium 10.00

Large 15.00

Glass 75.00

Coconut Shell 85.00

4 slices 150.00

8 slices 300.00

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PRODUCTION PROCESS

It is concerned with transforming a range of inputs into those

outputs that are required by the market. The production process of

the product offered is discussed on the following pages.

 Buko Ice Candy Recipe

Ingredients:

 2 cups buko juice (coconut water)

 1 pc young coconut, extract meat by scraping into strings

 2 tbsp cornstarch

 1/2 cup sugar

 1/2 cup sweetened condensed milk

 1½ cups evaporated or fresh milk

 1 tsp vanilla extract (optional)

Procedures:

1. Combine cornstarch and buko juice in a saucepan. Stir until

cornstarch is dissolved.

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 2. Heat the mixture on medium heat until it starts to boil. Turn

the heat to low and simmer for about 3 to 5 minutes, until it

thickens like syrup.

3. Pour mixture into a large mixing bowl. Add the sugar then

stir until it fully dissolves.

4. Let it cool down a little bit before adding the remaining

ingredients.

5. Add in sweetened condensed milk, fresh milk, and the

optional vanilla extract.

6. Stir thoroughly until well blended.

7. Add the coconut meat strings and mix well.

8. Test the taste of your mixture and add sugar if needed.

9. Using a funnel and ladle, pour the mixture into 5″ long ice

candy wrappers (use a pitcher if you don’t have a funnel).

10. Tie the top tightly and trim excess plastic from the knot.

11. Arrange ice candy in the freezer and freeze.

 Buko Salad Recipe

Ingredients

 4 cups young coconut buko, shredded

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  6 ounces sugar palm fruit kaong, drained

 12 ounces coconut gel nata de coco, drained

 2 cans 15 ounces each fruit cocktail, drained

 8 ounces pineapple chunks drained

 1 14 ounce can sweetened condensed milk

 7 ounces table cream

Instructions

1. In a mixing bowl, combine young coconut, kaong, nata de

coco, pineapple chunks, and fruit cocktail. Gently stir to

distribute the ingredients.

2. Add sweetened condensed milk and table cream. Mix

until all the ingredients are properly distributed.

3. Refrigerate for at least 4 hours or place in the freezer for

1 hour.

4. Transfer to a serving bowl.

 COCONUT BALLS

Ingredients

• 1 stick butter

• 1 can sweetened condensed milk

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 • 132 oz powdered sugar

• Pinch of salt

• 1 kg coconut

• 1 kg chocolate bark

INSTRUCTIONS:

1. Melt butter slowly; add milk. Stir in sugar and salt.

Add coconut. Chill until easily handled. Roll into

balls. Insert toothpicks & place in refrigerator or

freezer until firm. Remove a few at a time to prevent

getting soft.

2. Melt bark in a double boiler. Dip each ball in

chocolate. Place on waxed paper & remove

toothpicks. Let set until firm.

 COCONUT MACAROONS

Ingredients

 14 ounces sweet shredded coconut or desiccated

coconut

 1/2 cup butter

 1/2 cup brown sugar

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  3 pieces raw eggs

 14 ounces condensed milk

Instructions

1. Place the butter in a big bowl and cream using a fork

2. Add-in the brown sugar and mix well

3. Add the eggs and condensed milk then stir/beat until all

ingredients are blended

4. Put-in the Sweetened Shredded Coconut and distribute

evenly with the other ingredient in the mixture

5. In a mold (with paper cups if possible), place 1

tablespoon of the mixture on each of the cups

6. Pre-heat oven at 370 degrees Fahrenheit for 10 minutes

7. Bake the Coconut Macaroon mixture for 20 to 30 minutes

or until color turns golden brown.

 BUKO JUICE

 2 young coconuts

 ice cubes

 coconut meat

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  2 tbsp. sugar (optional)

INSTRUCTIONS

1. Prepare 2 young coconuts that are already cracked and

clean by coconut vendor.

2. Pour coconut/buko juice through a strainer into a glass

to get rid any particles.

3. Scrape coconut/buko meat with a spoon from the shell

and add in the juice.

4. Stir in sugar if you’re using one and add ice cubes and

serve with straw.

5. Chop the top of the buko to make it into a bowl. Reserve the buko

water.

6. Add all the other ingredients into the buko. Be sure to layer them.

7. Add the shaved ice and a little of the buko water to give it more

flavor.

8. Top with ice cream.

9.  Sprinkle with cornflakes or pinipig. Serve immediately.

 BUKO HALO HALO

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 Ingredients

 1 Whole buko, shred the meat

 crushed ice to the coconut shell

 6 tablespoons kaong

 6 tablespoons nangka (jackfruit)

 6 tablespoons macapuno (a variety of coconut meat sold in

bottles)

 6 tablespoons sweetened kidney beans

 6 tablespoons sweetened garabanzos

 6 tablespoons sweetened saba

 6 tablespoons ube or yam

 6 leche flan

 3 tablespoon pinipig

 6 tablespoons corn kernels

 ½ evaporated milk

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 a scoop of ice cream on top

 sugar (optional)

Procedure:

1. Wash the buko shell and open it on the top using the sharp

bolo.

2. Shred the coconut meat and separate.

3. Put an ice in the empty coconut shell.

4. Put all the sweetened ingredients on top.

5. Lastly put a scoop of ice cream on top

 BUKO PIE

Ingredients

 2 cups all-purpose flour

 1/3 cup butter

 1 teaspoon salt

 1/3 cup vegetable shortening

 6 to 8 tablespoons cold water

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  2 cups young coconut meat

 3/4 cup granulated white sugar

 1/2 cup cornstarch diluted in 1/2 cup young coconut water

 1/2 cup evaporated milk

Instructions

1. Create the crust. Combine flour and salt then mix using a

balloon whisk. Add butter and shortening then mix using a

pastry mixer. Gradually add cold water a tablespoon at a

time while mixing the ingredients. When everything is

completely mixed, gather the mixture and divide into two

equal parts. In a flat surface flatten each of the dough and

roll using a rolling pin until wide enough to fit an eight or

nine inch cake pan. Note: Sprinkle flour over the flat

surface to prevent the dough from sticking or use a silicon

mat. Arrange the first dough over the cake pan. This will be

the base. Set the second flattened dough aside. This will be

needed after arranging the filling in the cake pan.

2. Make the filling by heating a saucepan and pour-in the milk.

Let boil.

3. Add the granulated white sugar and stir.

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 4. Put-in the young coconut meat and cook for 3 minutes.

5. Pour-in the cornstarch diluted in young coconut water

and stir thoroughly while cooking. Cook until the texture

thickens.

6. Turn-off the heat and allow the mixture to cool down.

7. Preheat oven to 375 degrees Fahrenheit.

8. Arrange the cooked filling in the cake pan.

9. Put the second crust over the filling and seal the sides.

10. Create holes on the secondary crust using a fork. This

will serve as exhaust vents that will prevent the crust

from deforming.

11. Bake for 45 to 55 minutes or until the color turns golden

brown. Note: Baking time may vary; make sure to check

the color of the crust to determine if baking is complete.

Market Strategy
This chapter gives quantitative data that will reflect the status of the

showcase within the zone of business. It points to form an investigated on the

request of the item and supplies that can accomplish the target advertise.

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Primarily, showcase share of the business is given significance on this chapter

since it'll manage in the event that the trade is doable for the advertised.

Demand

One of the goals of this considers is to decide the evaluated

showcase share of the proposed business in Common Santos City. It gives the

thought of the measure of the commerce or company related to it advertise and

competitors.

The analyst conducted a study to its target showcase to urge the whole

request in connection to recurrence. The table on another page appears the

normal recurrence computed by the analyst from the overview conducted.

FREQ PERCENTAGE OF WILLING RESPONDENTS PER

UENC WILLING RESPONDENTS PER HOUR AVERAGE FREQUENCY PER HOUR
Y HOUR
BUKO COCON BUKO COCON BUKO COCON
BUKO MACAR BUKO HALO- BUKO BUKO MACAR BUKO HALO- BUKO BUKO MACAR BUKO HALO- BUKO
ICE UT ICE UT ICE UT
SALAD OONS JUICE HALO PIE SALAD OONS JUICE HALO PIE SALAD OONS JUICE HALO PIE
CANDY BALL CANDY BALL CANDY BALL
2 10 1 1 0.43 0.00 0.00 0.06 0.09 0.00 0.00 8.70 0.00 0.00 0.13 0.18 0.00 0.00
3 1 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.23 0.00 0.00 0.00 0.00 0.00
4 1 0.00 0.00 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.40 0.00 0.00 0.00 0.00
5 1 1 0.04 0.08 0.00 0.00 0.00 0.00 0.00 0.22 0.38 0.00 0.00 0.00 0.00 0.00
6 1 1 0.00 0.08 0.10 0.00 0.00 0.00 0.00 0.00 0.46 0.60 0.00 0.00 0.00 0.00
7 2 3 1 0.09 0.00 0.00 0.19 0.00 0.00 1.00 1.22 0.00 0.00 3.94 0.00 0.00 7.00
8 3 0.00 0.00 0.00 0.19 0.00 0.00 0.00 0.00 0.00 0.00 4.50 0.00 0.00 0.00
9 2 1 0.00 0.00 0.00 0.00 0.18 0.17 0.00 0.00 0.00 0.00 0.00 3.27 1.50 0.00
10 1 0.00 0.00 0.00 0.00 0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.91 0.00 0.00
11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12 2 5 0.09 0.00 0.00 0.31 0.00 0.00 0.00 2.09 0.00 0.00 18.75 0.00 0.00 0.00
13 1 0.00 0.00 0.10 0.00 0.00 0.00 0.00 0.00 0.00 1.30 0.00 0.00 0.00 0.00
14 1 1 1 0.04 0.08 0.10 0.00 0.00 0.00 0.00 0.61 1.08 1.40 0.00 0.00 0.00 0.00
15 1 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 1.15 0.00 0.00 0.00 0.00 0.00
16 2 3 4 0.00 0.15 0.30 0.25 0.00 0.00 0.00 0.00 4.92 14.40 16.00 0.00 0.00 0.00
17 1 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.74 0.00 0.00 0.00 0.00 0.00 0.00
18 2 3 0.00 0.00 0.20 0.00 0.27 0.00 0.00 0.00 0.00 7.20 0.00 14.73 0.00 0.00
19 4 0.00 0.00 0.00 0.00 0.36 0.00 0.00 0.00 0.00 0.00 0.00 27.64 0.00 0.00
20 5 0.00 0.00 0.00 0.00 0.00 0.83 0.00 0.00 0.00 0.00 0.00 0.00 83.33 0.00
21 1 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.91 0.00 0.00 0.00 0.00 0.00 0.00
22 2 0.00 0.15 0.00 0.00 0.00 0.00 0.00 0.00 6.77 0.00 0.00 0.00 0.00 0.00
23 1 0.00 0.00 0.10 0.00 0.00 0.00 0.00 0.00 0.00 2.30 0.00 0.00 0.00 0.00
24 1 0.04 0.00 0.00 0.00 0.00 0.00 0.00 1.04 0.00 0.00 0.00 0.00 0.00 0.00
25 1 0.04 0.00 0.00 0.00 0.00 0.00 0.00 1.09 0.00 0.00 0.00 0.00 0.00 0.00
26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
27 1 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 2.08 0.00 0.00 0.00 0.00 0.00
28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
29 1 0.04 0.00 0.00 0.00 0.00 0.00 0.00 1.26 0.00 0.00 0.00 0.00 0.00 0.00
30 1 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 2.31 0.00 0.00 0.00 0.00 0.00
31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
32 1 0.04 0.00 0.00 0.00 0.00 0.00 0.00 1.39 0.00 0.00 0.00 0.00 0.00 0.00
33 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
34 1 1 0.04 0.08 0.00 0.00 0.00 0.00 0.00 1.48 2.62 0.00 0.00 0.00 0.00 0.00
35 1 0.00 0.08 0.00 0.00 0.00 0.00 0.00 0.00 2.69 0.00 0.00 0.00 0.00 0.00
TOT
AL 23 13 10 16 11 6 1 1.00 1.00 1.00 1.00 1.00 1.00 1.00 21 25 28 43 47 85 7 16 | P a g e
 Target Market

Market Segmentation

Market division separates an advertised into clearly

identifiable fragment of shoppers with comparable needs. Once

recognized, those sections can be focused on with a particular

showcasing blend custom fitted to each segment’s interesting needs,

wanted and inspiration.

Demographic Segmentation

Socioeconomics permit us to get it the populace in any

geographic re such as the age, sex, family, buying behavior, client inclinations or

get it the trade in any zone: measure, industry, workers and incomes.

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 Within the demographic segmentation, age is the foremost

fundamental variable of them all, the foremost vital since shopper inclinations

persistently alter with age. This variable can be seen with respect to particular

age ranges of Teenagers, Youthful Grown-ups, Develop Grown-ups and Middle

Age Adults. They are the target advertise since it talks almost unwinding.

Individuals these days needed to enjoy in this modern kind of treatment

particularly millennial who likes unused trend and grown-ups finding a culminate

put to loosen up themselves.

Geographic Segmentation

Geographic division isolates the advertise concurring to its

geographic criteria such as countries, states, locales, cities, neighborhood or zip

codes. The basic expectation of the trade is to create benefit. To achieve this

objective, a perfect promoting strategy is fundamental. It is crucial that marketers

recognize the differences of each client and distinguishes their needs by the

distinctive sections of the advertise.

Based on the census of 2015 the populace in

Barangay Lagao, General Santos City comes to 50,789. This area

is the target showcase since it is known for a highly urbanized

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 barangay in the city too. It could be a culminate put to construct a

modern different kind of benefit and innovation that the

commanders would appreciate.

Market Size and Trends

The number of potential buyers and/or sellers of a product or

service in a given market is referred to as market size. This will be known before

a new product or service is launched in a given location.

Individuals in General Santos City aged 15 to 59 years’ old who want to

experience the unique service being provided make up the target market for the

proposed company. As of 2015, the Philippine Statistics Authority recorded a

total population in Barangay Lagao is 50, 789. It was multiplied with the 2015

growth rate of 1.89% in order to get the 2020 population. Individuals aged 15 to

59 who are interested in purchasing products from the proposed business.

Market Size

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TOTAL POPULATION 78,486

PERCENT IN LESS: POVERTY PERCENTAGE OF WILLING LESS: MARGIN OF

PARTICULARS TOTAL
POPULATION RATE (16.7) RESPONDENTS (80) ERROR (10%)

15-19 16% 12,582 10,481 8,385 7,546

20-24 17% 13,560 11,295 9,036 8,133
25-29 15% 11,411 9,505 7,604 6,844
30-34 12% 9,382 7,815 6,252 5,627
35-39 10% 8,235 6,860 5,488 4,939
40-44 9% 7,366 6,136 4,908 4,418
45-49 8% 6,412 5,341 4,273 3,845
50-54 7% 5,216 4,345 3,476 3,129
55-59 6% 4,359 3,631 2,905 2,614
ESTIMATED MARKET
47,094
SIZE

To determine the market size of the business, the researcher

estimated the total population of people aged 15 to 59 years old, which

came to 78,486. This was then multiplied by the number of people in

each age group. Since not everyone could afford to use the program,

10% of the total was deducted as a poverty rate. As the percentage of

willing respondents, the result was multiplied by 80 percent again. A total

of 80 people is interested in starting a company if it is successful. Finally,

the result was subtracted from the total by a 10% margin of error, yielding

the approximate market size of the proposed company.

Competition

This section depicts the market rivalry for each of the

aforementioned services, with a focus on General Santos City.

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 There are no other businesses in the area that sell the very same

goods as the proposed company. As a result, the proposed business

has a monopoly in the region.

Operations and Management

he charts below shows our own production paradigm based on our product

concept.

Operation

After everything is settled or after the above mentioned

activities was already finished, the business can now start legally.

MANAGEMENT

Focused on the employees, their jobs, benefits and

salaries, and to their tasks that will be done before starting the

business.

Determine the form or business organization that is best

suited for the proposed business, the organizational structure, the

number of personnel needed, their qualifications, compensations,

and projected time table before the project is implemented.

Determine the competitive condition and to define the

company policies.

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Organizational Structure

The organizational structure (chart) serves as the guide of the business

entity because it shows the management structure of the organization. A

line organization structure will be used by the proposed “One Stop Shop

Food Coconut Products” Shop

Manager/
Cashier (1)

Kitchen Head Cook

Waitress
Assistant (1)
(1)
(1)

positions
Manager responsible for ensuring that
its staff are aware of and fulfill their
governance responsibilities, comply with
Manager
applicable laws and bylaws, conduct
board business effectively and efficiently
and accountable for their performance.

Ensures the food preparation areas

Kitchen assistance are clean and hygienic, Washing
utensils and dishes, and making sure
they are stored appropriately

Ensure quality control during and

Headcook post production including
maintenance of hygiene standards,
Supervise and train production staff

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 to efficiently and safely produce the
products with minimum wastage, and
Calculate raw material needs and
efficiently maintain stock levels to
meet production requirements.
Takes care of the communication
such as telephone and Assists the
customers
waitress

Accepts cash for payment, Maintains

sufficient amounts of change in cash
drawer, Keeps records of sales,
Balances cash drawer and receipts;
Cashier documents discrepancies, Keeps
counter’s deck clean, Provides
customer assistance, Maintains well-
groomed look throughout the day.

Financial Plan
Capitalization
The total capitalization of the proposed business will

be Php845, 042.80. This investment will be used in the acquisition of

machineries and equipment, supplies, furniture and fixtures, and

payment for the construction of building and other expenditures

necessary for the establishment of the proposed business.

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Presented below on the next page is the table of investment cost of

the proposed venture.

INVESTMENT COST
Particulars Amount
Property Plant and Equipment 693,308
Pre-Operating Expense 151,735
Total ₱ 845,042.80

Table 1 shows the Investment cost during the initial year of

operation. It is noted that fixed cost is lower than the variable costs.

Projected statement of financial performance

Table no_

The Statement of Financial Performance shows a net income

after tax of Php5, 381.14. At the end of the second year, it increased

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 by 7.89% which resulted to a net income of Php47, 814.62. At the

end of the third year, it shows an increase of Php28, 749.69 or 60%.

By the end of the fourth year, the net income of the proposed

business is Php92, 963. It has increased by 21%. The net income at

the end of the fifth year is Php125, 004.01 or an increase by 34%

Projected statement of financial Position

Table No_

Projected Statement of Financial Position

Year 1 Year 2 Year 3 Year 4 Year 5

Current Assets:
Cash ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36
Prepaid Tax ₱ - ₱ - ₱ - ₱ - ₱ -
Total Current Assets ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36

NonCurrent Assets

Property,Plant and Equipment 693,307.80 693,307.80 693,307.80 693,307.80 693,307.80

Accumulated Depreciation (53,249.33) (106,498.65) (159,747.98) (212,997.30) (266,246.63)
Total NonCurrent Assets 640,058.48 586,809.15 533,559.83 480,310.50 427,061.18

Total Assets ₱ 857,487.12 ₱ 885,940.87 ₱ 927,303.35 ₱ 975,944.67 ₱ 1,041,879.54

Current Liabilies
SSS Payable ₱ 5,220.00 ₱ 5,220.00 ₱ 5,220.00 ₱ 5,460.00 ₱ 5,460.00
Philhealth Payable 2,374.32 2,374.32 2,374.32 2,471.67 2,471.67
Pag-ibig Payable 1,582.88 1,582.88 1,582.88 1,647.78 1,647.78
Income Tax Payable 576.55 5,122.99 8,203.32 9,960.42 13,393.29
VAT Payable - - - - -
Total Current Liabilities ₱ 9,753.75 ₱ 14,300.19 ₱ 17,380.52 ₱ 19,539.87 ₱ 22,972.73

Owner A, Capital ₱ 423,866.69 ₱ 435,820.34 ₱ 454,961.42 ₱ 478,202.40 ₱ 509,453.40

Owner B,Capital 423,866.69 435,820.34 454,961.42 478,202.40 509,453.40
Total Equity ₱ 847,733.37 ₱ 871,640.68 ₱ 909,922.83 ₱ 956,404.80 ₱ 1,018,906.80

Total Liabilities and Equity ₱ 857,487.12 ₱ 885,940.87 ₱ 927,303.35 ₱ 975,944.67 ₱ 1,041,879.54

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 The summary shows that the assets, liabilities and equity of the

proposed business continue to increase. The second year of

operations resulted to an increase in the assets of Php28, 453.75

or 3%. On the third year of operation, the assets increased by

Php41, 362.48 or 5%. On the fourth year, the total assets of the

business have increased by 5% or Php48, 641.32; while Php65,

934.87 increases at the end of fifth year.

Projected statement of cash flow

Table No_

Projected Statement of Cash Flows

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net income ₱ - ₱ 5,381.14 ₱ 47,814.62 ₱ 76,564.30 ₱ 92,963.93 ₱ 125,004.01
Add: Depreciation Expense 53,249.33 53,249.33 53,249.33 53,249.33 53,249.33
Cash Income ₱ - ₱ 58,630.47 ₱ 101,063.94 ₱ 129,813.63 ₱ 146,213.26 ₱ 178,253.34

Operating Activities:
(Increase)/Decrease
Increase in SSS Payable 5,220.00 240.00
Increase in PhilHealth Payable 2,374.32 (0.00) (0.00) 97.35
Increase in PAG-IBIG Payable 1,582.88 64.90
Increase in Income Tax Payable 576.55 4,546.44 3,080.32 1,757.10 3,432.87
Net cash Provided by Operating Activities ₱ - ₱ 68,384.22 ₱ 105,610.39 ₱ 132,893.95 ₱ 148,372.61 ₱ 181,686.20

Investing Activities:
(Increase)/Decrease
Increase in PPE ₱ (693,307.80) ₱ (693,307.80)
Net Cash Provided by Investing Activities ₱ (693,307.80) ₱ (693,307.80) ₱ - ₱ - ₱ - ₱ -

Financing Activities:
Increase/(Decrease)
Partners' Investment ₱ 845,042.80 ₱ 845,042.80
Partners' Withdrawal ₱ (2,690.57) ₱ (23,907.31) ₱ (38,282.15) ₱ (46,481.97) ₱ (62,502.01)
Net cash Provided by Financing Activities ₱ 845,042.80 ₱ 842,352.23 ₱ (23,907.31) ₱ (38,282.15) ₱ (46,481.97) ₱ (62,502.01)

Net increase/decrease in cash ₱ 151,735.00 ₱ 217,428.65 ₱ 81,703.08 ₱ 94,611.80 ₱ 101,890.64 ₱ 119,184.20

Add: Cash, Beginning 217,428.65 299,131.72 393,743.53 495,634.17
Cash, Ending ₱ 151,735.00 ₱ 217,428.65 ₱ 299,131.72 ₱ 393,743.53 ₱ 495,634.17 ₱ 614,818.36

The Projected Statement of Cash Flows of the

proposed business shows cash balance of Php151, 735.00 at

26 | P a g e
Year 0. By the end of the first year of operations, the cash

balance is Php217, 428.65. At the end of the second year, the

cash balance has increased to Php299, 131. The cash

balance at the end of the third year is Php393, 743.53. It has

increased by 32% compared to the previous year. On the

fourth year, the ending cash balance is Php495, 63.17, and

increased by 26%.

27 | P a g e