INTRODUCTION

Name of the Firm

The business will carry the name BossTea. It is a shop that offers quality standard
products. The word “BossTea” definitely connotes its natural meaning pertaining to a fruit or
milk tea that contains polyphones, which are naturally occurring compounds that act as
antioxidants.

Location of the Firm

Bubble Bee Tea House will be strategically located at Palermo st. Kalawag 2, Isulan,
Sultan Kudarat. This location is expected to be an effective location because there will be only
few competitors that offers the same product which the establishment shall cater. The location
is near Kalawag Central School where many students go to school. The location is also near
other business establishments.

Vision

Our vision is to help create the best tasting teas that marked as one of the shop’s highly
reputable market that could attract visitors within the region as well as from other places.

Mission

Our mission is to help create a different milk tea drinking experience that would leave
customers satisfied and looking forward to more. Moreover, the business aims to go on extra
mile in giving its clients the ultimate revitalizing stay by offering luscious milk or fruit tea
beverages providing efficient and friendly service a midst, a clean and cozy environment.

1
Brief History of the Product

Bubble tea came into existence in Taiwan, when the beverage was created during the
1980’s. Although it is known which exact Taiwanese shop is the creator of Bubble tea, several
shops are speculated to be the origin. One possible origin is Chun Shui Tang tea house in
Taichung, where Ms. Lin Hsui Hui (product development manager) poured sweetened tapioca
balls into the tea during a meeting in 1988. The beverage was well received by the people at
the meeting, leading to its inclusion on the menu, ultimately becoming the franchise’s top-
selling product. An alternative origin is the Hanlin tea house in Tainan, Taiwan, owned by Tu
Tsong-he. He made tea traditional white tapioca, which has the appearance of pearls,
supposedly resulting in so-called “pearl tea”. Shortly after, Hanlin changed the white tapioca
balls to black version that is seen most today. The drink became more popular in most parts of
east and southeast during the 1990’s.
Brief Description of the Firm

Bubble Bee Tea House is a fun alternative hangout for everyone. That specializes in
bubble tea drinks that are famous throughout US, Canada and Southeast Asian countries.

2
 Chapter I

SUMMARY OF THE PROJECT

Market Projections

BossTea shop will obtain through required capital. Through the contribution of the owners of the
business. The best type of organization appropriate for the business is partnership. Partnership is a type of
business.

Marketing strategies like local fliers, tarpaulins, banners and pre-opening promos are appropriate for
advertising the business is in the market.

The proposed business will use of a standard food cart. Materials and other supplies will be obtained
from the manufacturers which we have selected.

Market Shares

Bubble Bee Tea House will grab 100% market shares. The shop will be built in Palermo
st. Kalawag 2, Isulan, Sultan Kudarat and only few competitors. Different marketing strategies
and promotions will be considered.

Market Prices

Price is the amount of money charged for a product. BossTea product pricing is very
affordable. With a low additional percentage price to the product, the business will surely click
to the market. Leaflets will be distributed and hand-out to various business establishments and
houses. Promos and services offered will be displayed on the store window. The owners will
offer promos to attract the consumers like a buy one take one on the products for the opening
of the BossTea shop.
 

3
Investment Cost

The initial capital of the business is three million five hundred thousand pesos
(3,500,000) which includes the franchising fee of three hundred fifty pesos (350,000), capital
requirement of three million pesos (3,000,000) and other expenses for constructing and
starting the business of one hundred fifty pesos (150,000). The initial capital will be enough to
support the business and meet the requirement of the franchisee.

Methods of Financing

BossTea shop will obtain through required capital through the contribution of the
owners of the business. The best type of organization appropriate for the business is
partnership. Partnership is a type of business wherein two to five members will invest and
contribute in starting the business.

Market Feasibility

Marketing strategies like local fliers, tarpaulins, banners and pre-opening promos are
appropriate for advertising the business in the market.

Technical Feasibility

The proposed business will require a store with an area of 15 square meters.
Materials and other supplies will be obtained from the manufacturers which we have selected.

Financial Feasibility

The Initial capital requirements, source of funds, project cost, salaries and
wages, balance sheet, cash flow and income statement.

4
 Chapter II
GENERAL DESCRIPTION

Management of the Project

Type of Business

The researchers chose Partnership as the form of business organization. Partnership is

the most suited formed of business organization for the venture. Partners will be monitoring
the daily operation to look after the business on a daily basis.

Benefits of Partnership

•Partnership is relatively easy to establish; however times should be invested in developing the
partnership agreement, in our case there’s no problem about it because we are mostly friends
and we are devoted to make our business progress

•With more than one owner, the ability to raise funds- Debt vs. Equity maybe increased.

•Higher quality employees. Partnerships tend to attract better employees because of the
possibility of becoming a principal in the firm.

•Easy to form. Procedures and expenses are minimized.

•The business usually benefit from partners who have complementary skills.

•Better decision- making capability. Two heads are better than one.

•Managerial flexibility. Generally, important decisions can be quickly, although not as fast in a
sole proprietorship.

5
Capitalization

Partner Amount of Contribution

Lady Marie Bautista ₱ 700,000
Lorenzo Mandia ₱ 700,000
Stephany Sarabosing ₱ 700,000
Janine Sumayo ₱ 700,000
Daniella Mae Tadena ₱ 700,000

Table 1 – Amount of Contribution

The initial capital of the business is three million five hundred thousand pesos (₱ 3,500,000) which will
be shared by five (5) partners. The owners decided to share an initial capital of seven hundred thousand (₱
700,000) each.

Organizational Chart
 
This organization chart or structure is based on direct flow of authority from the owner
which is also the manager.

Manager

Cashier Barista

Figure 1 - Organizational Chart

6
Job Specification

POSITION DUTIES AND RESPONSIBILITIES

Responsible for planning, organizing,
directing and controlling the areas of
MANAGER operation and that service is carried out in
accordance with prescribe standard and
policies of the Bubble Bee Tea House.
 Must wise in buying merchandise from
the supplier.
CASHIER  In charge in paying and signing receipt
from supplier.
 In charge of keeping record of purchased
items.
Highly skilled in presentation with a
comprehensive understanding of coffee or
tea blends, quality, coffee or tea variety,
BARISTA roast degree, and espresso equipment. His
responsibility is to execute and making tea
orders and ensuring quality product is being
served.

Table 2 –Job Specification

Recruitment Program

 At least 21 years managerial course

 2 to 3 years of experience on the
MANAGER same field
 At least 25-30 years of age
 With pleasing personality
 Female
 At least 18 years old
CASHIER  At least graduated of 2 years course
 Preferably with accounting
background
 With pleasing personality
BARISTA  Male/Female
 18-21 years old
 With pleasing personality

7
  Must perform without supervision

Table 3- Recruitment Program

Training Program

Many business firms require their employee to attend training programs and seminars
to equip them with additional skills for their works and business trends. The Bubble Bee Tea
House will conduct a one week training program to train and develop and enhance the skills of
the employee.

Fringe Benefits

According to Omnibus Rules Implementing the Labor Code, proponent must

give benefits to their employee. Here are some of the benefits Bubble Bee Tea House will
provide to their employee: SSS Contribution, Philhealth and Pag ibig.

Position Time Devoted Qualification Compensation

Position No. Daily Monthly Annual

Salary Honorarium
Manager 1 715 20,000 240,000
Cashier 1 660 18,500 222,000
Barista 1 570 16,000 192,000
Total 3 1,945 54,500 654,000

Table 4-Position Time Devoted Qualification Compensation

Timetable of the Project

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

8
 Planning
Fixing of Legal
Requirement
s
Construction
of the Store
Purchase of
Equipments
and
Machinery
Purchase of
Materials
Hiring of
Employees
Seminars and
Trainings of
Employees
Promotion
Period
Soft Opening
of the
Business
Grand
Opening of
the Business

Table 5 – Timetable of the Project

Organizational Cost

9
 Chapter III
MARKET STUDY

Our market study shows our business is suitable in the area as it was an urban place
with complete vicinity and many people are passing by and reachable for students, workers and
residential places, potential customers are increasing in every year, the location and our
competitors share a large market portion in the community, As years go by our target market
will increase and we can still give them the satisfactory wants and needs they needed, our
competitors will increase too but it depends on the market segment we share and our
marketing strategy

Marketing Program
In marketing program, promoting a business will have a different strategies and techniques
to attract probable customers and offer a promo to customers like:

1. Special add-ons

2. Upsize your order

3. Card reward points

4. Drink and Play

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 5. Free Wi-Fi

6. Milkfie

We create a marketing strategies like reward points for regular customer. In milkfie our
employees will take a selfie of you with our product and put it in our customers for the month
board as souvenir along with thank you message. We will put the promo offers outside in a
tarpaulin standee with colorful designs to attract possible customers along with our employee
giving fliers for our menu and special offers.

Economic Aspects
Milk tea contains a tea base mixed/shaken with fruits or jellies that are often added, it
was invented in 1980s but as of now it just became wildly known in late 2000s here in
Philippines and around Asia, milk tea shops are everywhere whether big or small milk tea
business or even a milk tea in a cart. These past few years milk tea industry is expected to
increase and gain large market share in the economy from students to workers and children
everybody drink milk tea and with their much lesser and affordable prices than the leasing
coffee shop industry it is likely accurate to say that milk tea is part of our daily life and better
alternative for other beverages.

Probable customers
Our plan site is near residential areas and schools. Our customers are likely to be:

1. Students

2. Future residence from the residential area

3. Tenants at a nearby commercial buildings

4. Office workers

Demand Analysis

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 YEAR DEMAND ANALYSIS
2015 898,111
2016 908,410
2017 940,308
2018 1,020,730
2019 1,057,121
Table –Demand Analysis

Supply Analysis

YEAR SUPPLY ANALYSIS

2015 273,750
2016 281,963
2017 360,985
2018 372,300
2019 423,400
Table –Supply Analysis

Assumptions Made
Growth Population from 2014-2016 with 3.54% increasing rate

2015- 30,960 2019- 37,303

2016- 32,055 *customers of competitors in a day

2017- 33,180

2018- 36,018

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 Chapter IV

Marketing Aspects

This chapter will help to know the marketing aspect of the business. The marketing
aspects will cover the following: Marketing Analysis, Product logo and Packaging, Price Strategy,
Promotions, Place and environment, Terms of sales, and Channel of distribution.

For the business to proper, it should be given time and effort. The proponent of this
business must have the desired creatively so as to be able to provide quality service to its
customers. The fulfillment of the needs and wants of its customer or target market must be the
key objective of the recommended business.

In every project, feasibility marketing aspect is well-thought-out the most important

since it requires inconspicuous analysis of the business total demand and supply.

MARKETING ANALYSIS

Demand for Tea

Customers are likely to be:

Young professionals may consider BossTea a novelty and luxury alternative to the commuter,
lunchtime, or after-work coffee. Although it contains sugar, BossTea is much healthier
alternative to carbonated fizzy drinks and may therefore appeal to health conscious consumers.

13
It is popular for people to hold meetings such as craft circles and book groups in local cafes and
coffee shops, and a BossTea café could appeal as an unusual alternative.

Objectives of the marketing aspects are strategically centered on 3 criteria:

 To create strong consumer awareness towards a completely new BossTea House

 To establish a wide brand recognition through the capture of market shares in the
functional drinks segment
 To become top market leader

Present marketing practices of Competitors

 Product Innovation
 Mass Media
 Differential Pricing
 Personalization

Selling Organization

Selling organization must have deep knowledge of the buyer’s business model and the
ways in which their offering will impact the buyers the total cost-in-use and the buyer’s sales of
their own products. It must be able to quantify and prove the value relative to alternatives. In
many cases, this will actually require the sales persons to have the business acumen necessary
to tailor the quantification and proof to individual buyers. Marketing will typically need to play
a significant role in establishing proof points and enabling the field with the information.

BossTea shop has a manager and two employees. The manager will monitor all of the
employees in the store and all of the employees are required for training.

Policies to all employees and manager:

 Personnel must be in store 30minutes before the operation.

 Personnel must always be able check all records of sale and disbursement before the
opening and closing the store.
 Regarding the accomplishment of every personnel performance.

14
  Maintain the cleanliness and orderliness of the store.

Place and Environment

BossTea House will be located is in the considered to be strategic location for a business
because it lies along the way of Kalawag Central School. Through our scope is within Palermo st. there’s
a possibility that people in also be our customers.

Different high schools and universities such as Roosevelt College, NCBA, and WCC etc are
prospect buyers. The location of the business will be accessible enough to meet the need of our target
market.

Moreover, the place is also near Proj4 market,Murphy market or Farmers market where we can
have easy access regarding the raw materials that we will be needed in regular operations and even on
emergency operation.

Transportation and storing facilities

The products will be transported by truck and stored at the refrigerator to avoid spoilage.

Pricing Strategies

We used cost plus strategy in order to set the price of our products. The computation would be:
Purchase Cost + Operating Cost + Mark Up = Selling Cost

15
PRODUCT LOGO AND PACKAGING

Packaging plays in Bubblebee Tea House are an important role as a medium in the marketing
mix, in promotional campaigns, as a pricing criterion, in defining the character of new products , as a
setter of trends and as an instrument to create brand identity and shelf impact in all product groups.

We will be using plastic cups for our tea and on the side part of the cup will have our
inspirational quotes that make their day inspiring. On the top of the cup would be our logo.

16
 This is our product logo

The packaging of our tea plastic cups

Promotion

17
POSTER

Posters will be placed in our store. The design of the poster canable to catch the
attention of the customers because of the information provided as well as its aesthetic. Chosen
colors are pleasing to the eye and will surely boost the interest of the customers to eat to our
restaurant.

Two posters will be produced which are good for three months.

The computation would be: 2(no. of pcs.)X250(unit price) x3(no. of months) = Php 500.00

WEBSITE

We are now living in the modern world and surfing to the internet is one of the easiest
ways to have quick access. The proponents will be using free website in order to reach wider
range of possible customers. This will be great help for them to know the concept behind
“BossTea House”. It will also provide good communication relationship in ways that, we will be
giving information and they will be giving comments and suggestions for product improvements
and other concerns.

Flyers

Flyers can convey wide range of possible buyers for it can be brought to other places.
The store will be produce 200 flyers per day. These will be distributed twice a week or eight
times in a month. Flyers will be given in the first three months of the business until it will get its
loyal customers.

The computation would be: 200(no. of pcs.) X 10 (unit price) X 8 (no. of times per month) = Php
16,000

Gift Certificates

Our store will be giving gift certificates worth Php 100 on the first day of operation of
our business. The recipients of these certificates will be the first 100 customers of our store.

18
TERMS OF SALE

In terms of sale, Cash basis only.

Channel of Distribution

The distribution will be producer (BossTea house) to consumers.

Expected marketing problems that may be encountered and how shall they be solved

o Business maybe unpredictable because the brand is newly introduced here in national
capita; region. Promotion and advertising is a must to increase attention to get
customers.
o Employees may become lazy because of customers and may not try to allure their
customers. Benefits will be given if reach a certain quota.
o Advertisement may not reach out to customers; a new design will be made to entice
prospective customers.
o Touch competition, since the BossTea house will be competing with big time
competitors like Little Miss Tea, Mactea, Gotcha etc. we need to find edge to be able to
compete with them.

MARKET SUMMARY

The market projection of this BossTea House is based on the surveys conducted and
other related information gathered within the vicinity of Isulan, Sultan Kudarat. Projection of

19
demand, supply, and sales for the first five years of operation is based on the different factors
like the population growth, market acceptability, capacity to supply and other factors. This
study is feasible because our target populations are willing and capable of availing our products
and services. We also consider factors like our competitors and prevailing prices of the suppliers
that will affect our prices. Based on our demand supply analysis we found out that we can
supply the available market based on our production capacity.

Chapter V
TECHNICAL ASPECT

Product

Bubble Tea is made up of hot or cold tea, milk, sugar and giant black tapioca balls. Ice is
then added and the drink shaken to create the bubble effect. The term “Bubble” refers to
tapioca balls in the drink. This chewy tapioca balls or “pearls” are consumed along with the
beverage through a wide straw. Bubble tea is a mixture of iced or hot sweetened tea, milk, and
often other flavorings. The distinctive characteristics of bubble tea are the black gummy balls
made of tapioca (or, more commonly in East Asia, yam starch), called "pearls" or "boba" or balls
that sit at the bottom of the cup.

Manufacturing Process

Bubble Tea is made by pouring the prepared tea into a shaker. Milk is added for a creamy bubble tea or
Juice for a fruity tea or leave plain and add a little extra water. Sweeten to taste with the simple syrup from
soaking the tapioca balls. It takes only up to 3.5 minutes to make each cup. Then the mixture will be transferred
to the prepared cup with tapioca balls and will be covered with a vacuum sealed plastic cover.

20
Plant Size and Production Schedule

Machinery

EQUIPMENT QUANTITY AMOUNT

Thermo Bucket 1 (10 kl.) ₱2,000.00

Milk Tea Mixer & 2 ₱15,000.00

Extracting Machine
Digital Kitchen Timer 1 ₱400.00

Stainless Ladle 2 ₱50.00

Milk Tea Barrel 1 ₱2,500.00

Stainless Steel Liner
Cup Sealer 1 ₱10,000.00
Wall Mounted Split 2 ₱25,000.00
Type Aircon
Fire Extinguisher 2 ₱3,000.00
TOTAL ₱57,950

Table 5- Equipment

Store Location

Store Layout

Raw Materials

Ingredients Price
Oolong Tea ₱ 505.00/ 600 gms
Jasmine Tea ₱ 400.00/ 600 gms
Non-Dairy Creamer ₱ 4,000.00/ 25 kg
Almond Syrup ₱ 460.00/ 1.3 kg
Honey Syrup ₱ 380.00/ 3 kg
Mango Syrup ₱ 485.00/ 5.5 kg
Strawberry Syrup ₱ 390.00/ 2.5 kg

21
 Taro Syrup ₱ 490.00/ 2.5 kg
Wintermelon Syrup ₱ 2,200.00/ 20 kg

Table 6- List of Raw Materials

Supplier

Company name Location Contact number

Tri-Merchand Marketing #20 Izumi Building Kamagong Miss Toni Tang
Corporation St. Maybunga City of Pasig, Tel: 4758384/09175814072
NCR

Table 7- Supplier

Supplies

CLEANING SUPPLIES QUANTITY PRICE

Mop bucket & wringer 1 ₱200.00
Broom & dust pan 1 set ₱100.00
Squeegee 2 ₱120.00
Cleaning solutions 5 bottles ₱1,000.00
TOTAL ₱1,420.00

Table 8- Cleaning Supplies

OFFICE SUPPLIES QUANTITY AMOUNT

Electronic printing calculator 1 ₱2,280.00
Wi-Fi router 1 ₱1,480.00
Audio system 1 ₱7,500.00
TOTAL   ₱11,260.00

Table 9- Office Supplies

MILK TEA SUPPLIES QUANTITY PRICE

Jigger 5 ₱500.00
Bar spoons 5 ₱200.00
Disposable cups 1,000 pcs. ₱10,000.00

22
 Straw 200 packs ₱2,000.00
Glass wares 5 sets ₱10,000.00
Tea supplies 600 packs ₱40,000.00
TOTAL ₱62,700

Table 10- Milk Tea Supplies

Furniture and Fixture

FURNITURE AND FIXTURE QUANTITY PRICE

Round coffee table 3 9,000.00
Wooden chairs 6 1,800
TOTAL 10,800

Table 11- Furniture and Fixtures

Utilities

UTILITIES Monthly Annually

Electric bill ₱2500 ₱30000
Water bill ₱1500 ₱18000
Communication ₱500 ₱6000
TOTAL ₱54000

Table 12- Utilities

Note: The proposed business will be using purified drinking water to minimize the health issue
regarding what water will be use of the business.

Store Renovation and Rent Cost Rented Space:

BossTea House will be renting a space at 932 One Convio Corner 20th Avenue, Aurora
Blvd., Cubao, Quezon City. The space measures 15 sq.m. The proponents will rent the said

23
space with an amount of ₱ 16,500.00 monthly inclusive of tax and two months deposit of ₱
30,000 exclusive of tax. The lessee requires twelve months of postdated checks.
 
Renovation Cost: ₱ 6418

Total Cost: ₱ 36,418

Legal Requirements

1. Registration with BIR (Bureau of Internal Revenue)

2. Registration of Business Name with DTI (Department of Trade and Industry)
3. Barangay Clearance and Business Permit
4. Mayors Permit
 

Status and Timetable of the Project

24
 Chapter VI

Financial Study

This chapter discusses the Financial Aspects of the study, in order for a business plan to
understand it needs money to start. To determine whether the future industry will remain
profitable through the existence of competitors and unfavorable economic condition, the
researches have to project a three year financial statement.

This chapter includes the Initial capital requirements, source of funds, project cost, salaries
and wages, balance sheet, cash flow and income statement.

6.1 Initial Capital Requirements

The partners agreed to contribute an equal sharing capital in amount of ₱ 700,000.00 each

Initial Capital Requirements

Partners Ratio Invested Amount
Lady Marie Bautista 20% ₱ 700,000.00
Daniella Tadena 20% ₱ 700,000.00
Lorenzo Mandia 20% ₱ 700,000.00
Janine Sumayo 20% ₱ 700,000.00
Stephany Sarabosing 20% ₱ 700,000.00
Total 100% ₱ 3,500,000.00

6.2 Source of Financing

All other financial needs will self-funded by the partners.

6.3 Project Cost

25
 Supply and Operations
Particulars Amount
 Working Capitals ₱800,000.00
 Operating Expenses ₱30,000.00
 Pre-Operating Expenses ₱20,000.00
 Research and Development ₱5,000.00
Total Project Cost ₱855,000.00

6.4 Salaries and Wages

Salaries and Wages 

 Position Compensation Annually

 Manager ₱20,000.00/month ₱240,000.00

Cashier ₱18,500.00/month ₱222,000.00

 Barista ₱16,000.00/month ₱192,000.00

 Total Salaries and Wages ₱654,000.00

6.5 Projected Balance Sheet

26
 Bubble Bee Tea House 
PROJECTED BALANCE SHEET 
For the Year Ended December 31, 2015 to 2017
 Particulars 2015 2016 2017
ASSETS
   Current Assets      
   Cash on Hand and in Bank  ₱3,007,411.40  ₱3,797,957.42  ₱4,635,417.47
   Change Funds 10,000.00  11,000.00  12,100.00 
   Total Current Assets ₱3,017,411.40  ₱3,808,957.42  ₱4,647,517.47 
   Non-Current Assets      
   Supplies ₱86,202.00  ₱86,202.00   ₱86,202.00  
   Furniture and Fixtures 17,980.00  17,980.00   17,980.00  
   Equipment 266,808.25  266,808.25   266,808.25  
   Less: Accumulated Depreciation 90,591.69  99,650.86  109,615.94 
   Total Non-Current Assets ₱280,398.56  ₱271,339.39  ₱261,34.31 
   Pre-Operating Activities 13100     
 TOTAL ASSETS  ₱3,310,909.96 ₱4,080,296.81  ₱4,908,891.78 
 
LIABILITIES AND OWNER’S EQUITY 
  Current Liabilities 
   SSS Payable  ₱30,801.60 ₱31,109.62  ₱31,420.71 
   PAGIBIG Payable 18,975.84  19,165.60  19,357.25 
   Withholding Tax Payable 38,197.80  38,579.78  38,965.58 
   PHILHEALTH Payable 11,700.00  11,817.00  11,935.17 
TOTAL LIABILITIES ₱99,675.24  ₱100,671.99  ₱101,678.71 
OWNER’S EQUITY 
   Bubble Bee, Capital ₱2,500,000.00  ₱3,211,234.72  ₱3,979,624.82 
   Add: Net Income After Tax 711,234.72  768,390.10  827,588.25 
TOTAL OWNER’S EQUITY  ₱3,211,234.72  ₱3,979,624.82  ₱4,807,213.07 
TOTAL LIABILITIES AND PARTNER’S  ₱3,310,909.96 ₱4,080,296.81  ₱4,908,891.78 
CAPITAL

6.6 Projected Cash Flow Statement

27
 Bubble Bee Tea House 
PROJECTED CASH FLOW STATEMENT
For the Year Ended December 31, 2015 to 2017
 Particulars 2015 2016 2017
CASH INFLOWS
   Cash Balance-Beginning  ₱2,500,000.00  ₱3,211,234.72  ₱3,979,624.82
   Add:Cash Receipts From Customers 711,234.72  769,390.10  827,588.25 
 TOTAL CASH INFLOWS  ₱3,211,234.72 ₱3,979,624.82  ₱4,807,213.07 
 
LESS: CASH OUTFLOWS 
  Operating Expenses  and Other Cash Outflows
Supplies Expense ₱86,202.00 ₱86,245.10 ₱86,288.22
Promotional and Representation 10,000.00 10,000.00 10,000.00
Taxes and Licenses 12,670.00 12,670.00 12,670.00
   SSS Payable  30,801.60 31,109.62  1,420.71 
   PAGIBIG Payable 18,975.84  19,165.60  19,357.25 
   Withholding Tax Payable 38,197.80  38,579.78  38,965.58 
   PHILHEALTH Payable 11,700.00  11,817.00  11,935.17 
Salaries and Wages 474,394.08 483,881.96 493,559.60
Utilities Expense 149,357.78 150,851.36 152,359.87
Repair and Maintenance 25,000.00 25,250.00 25,502.50
Rent Expense 378,000.00 378,000.00 378,000.00
Depreciation Expense 90,591.69 90,591.69 90,591.69
TOTAL CASH OUTFLOWS ₱1,325,890.79  ₱1,338,162.10  ₱1,350,650.60 

NET CASH BALANCE  ₱1,885,343.93 ₱2,641,462.72  ₱3,456,562.47 

6.7 Projected Income Statement

28
 Bubble Bee Tea House 
PROJECTED INCOME STATEMENT
For the Year Ended December 31, 2015 to 2017
 Particulars 2015 2016 2017
REVENUE
   Gross Sales  ₱3,441,000.00  ₱3,548,358.37  ₱3,772,133.31
   Less: Cost of Sales 1,069,175.80  1,079,867.56  1,090,666.23 
 TOTAL REVENUE  ₱2,371,824.20 ₱2,468,147.54  ₱2,567,692.14 
 
LESS: CASH OUTFLOWS 
  Operating Expenses  and Other Cash Outflows
Supplies Expense ₱86,202.00 ₱86,245.10 ₱86,288.22
Promotional and Representation 10,000.00 10,000.00 10,000.00
Taxes and Licenses 12,670.00 12,670.00 12,670.00
   SSS Payable  30,801.60 31,109.62  1,420.71 
   PAGIBIG Payable 18,975.84  19,165.60  19,357.25 
   Withholding Tax Payable 38,197.80  38,579.78  38,965.58 
   PHILHEALTH Payable 11,700.00  11,817.00  11,935.17 
Salaries and Wages 474,394.08 483,881.96 493,559.60
Utilities Expense 149,357.78 150,851.36 152,359.87
Repair and Maintenance 25,000.00 25,250.00 25,502.50
Rent Expense 378,000.00 378,000.00 378,000.00
Depreciation Expense 90,591.69 90,591.69 90,591.69
TOTAL CASH OUTFLOWS ₱1,325,890.79  ₱1,338,162.10  ₱1,350,650.60 

INCOME BEFORE TAX  ₱1,045,933.41 ₱1,129,985.44  ₱1,217,041.54 

Multiply by: Provisions For Income 32% 32% 32%
Tax

INCOME AFTER TAX ₱711,234.72 ₱768,390.10 ₱827,588.25

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