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I. EXECUTIVE SUMMARY

The Nutries (Pastry Shop) established by the owners to use all their skills and

knowledge that they acquire as a Bachelor of Science in Business Management students;

serve a unique and affordable product. The business was located at Governors Drive,

Ophir Sapang 1, Ternate, Cavite near at Mountain Brew Coffee Shop. The Nutries

(Pastry Shop) is a competitive business. The uniqueness of their business served as the

advantage among the other pastry business. The business developed and innovated by the

owner to ensure the customer satisfaction. Modern designs are now common in the

industry of restaurants so they decide to make the business closer to the nature. Their

Pastry Shop focuses on serving healthy, organic and affordable foods and drinks that can

be enjoyed by everyone.

They segmented their product according to the demographic segment. The area

where the Nutries (Pastry Shop) located has a high number of tourist pass by who is

possible customers.The Nutries offered wide variety of nutritious salads, beverages,

smoothies, desserts and pastries such as cakes and cookies. This wide variety of fruits and

vegetables is available to those people passing by who are going and coming to Batangas

via Kaybiang tunnel.

The seven entrepreneurs equally shared P120,000.00 which amounted to an initial

capital of P840,000.00. This amount is used for the availability of tools, equipment,

ingredients and constructing the shop. Their business is aimed to increase its sales

because it is the only shop in the area that offers this kind of menu. In terms of profit the

owners are aimed to have high profit because the ingredients is going to come from local
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farmers so that the cost of the said ingredients is low compare to same ingredients found

in the market. They vision their business to be recognized widely after 5 years from now.

They will have extensions and franchises of their pastry shop. And they will be known as

one of the best pastry shop in business industry.

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II. GENERAL COMPANY DESCRIPTION

The business is named Nutries (Pastry Shop) originated from the idea of the

owners. Their business is appropriated to the wellness of their customers and promoted

the healthy lifestyle that is why they offered nutritious food and beverages. It is a

partnership consisted of seven millenials that has a fresh knowledge in infusing ideas for

the newest and freshest menu their shop has to offer. Nutries (Pastry Shop) is the

combination of the English word “Nutri” from Nutrients and “tries” from Pastries.

The mission of their business is to create the unique and organic ingredients into

the best tasting pastries, smoothies, desserts, salads and beverages. Their business aims to

provide clean and welcoming environment where absolute guest satisfaction is their

highest priority. They nurture the idea that their offerings are enjoyed by families and

friends, making them the part of life’s celebrations and memories. They will continuously

improve all aspects of their business in order to sustain the long-term success of their

customers and themselves.

The business goal is to introduce veggie and fruits which are fresh, nutritious and

new to millenials especially those who are still engage in eating and drinking junk foods.

Also their objective is to help local farmers to market and introduce low cost yet

nutritious and healthy fruits and vegetables to the new market which is the millenials.

Modern designs are now common in the industry of restaurants so they decide to

make their business closer to the nature. Their Pastry Shop focuses on serving healthy,

organic and affordable product that can be enjoyed by everyone.

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The business is a one-stop Pastry Shop offers different healthy pastries and

dietary beverages with the overlook aesthetic of nature. They serve their menu, freshly

pick from front yard and from local farmers according to the customers taste and giving

them a privilege to walk in and to choose their main ingredients. It is affordable to

customers of all ages, and they offer good customer service, special product features or

benefits and specialist knowledge and skills are the strength of their business.
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III. THE OPPORTUNITY, INDUSTRY AND MARKET DESCRIPTION

A. The Opportunity

Nowadays, most of the businesses are coffee shops, so the founders thought of a

business that has twist opportunities and benefits that their customers can get. A twist that

can be beneficial to their customers in terms of their health, because the Nutries (Pastry

Shop) offers a very nutritious kinds of food which is promoting a healthy lifestyle for

their customer and focused on serving organic and healthy kind of pastries, dessert and

beverages. They can say that there are many bakeshops out there or any other stores that

offers various kinds of foods and drinks but their shops is offered delectable, healthy and

organic kinds of foods because they aim to satisfy our customers with foods that they can

give nutrients to your body. Since the town of Ternate only have cafes, it is a great

opportunity to open up the very first pastry shop in town.

B. The Industry

There’s a lot of factors that could affect when opening a business. The owners

also thought on how they can overcome these factors. The first factor that can affect their

business was the brand recognition, it is really hard to compete with other business that

already had name and well-known by the customer. Second is the customer acceptance,

since their business was a new venture there are times that their target customer will

doubt on what would be the taste of their products or it will suit their taste and

preferences that they offer. They overcome these factors by extending and developing
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their promotional tools and providing them the nutritious and delicious taste of the

product they serves in their shop.

Everyone is their target market, it could be kids, teenagers or elders. They want to

provide them a nutritious and healthy foods and beverages yet affordable that suits their

taste. And provide highest satisfaction of their customers with the products and services

they offered and respond to their needs. And yes the customers influence the price they

pay because they thought that if they offer them expensive food that would be hard for

them to buy their product because even if it is healthy it is not affordable for those people

who don’t have enough money to buy their product. The customers have their choice

when buying their product because it is always depends to them if they want to buy it or

not.

Their suppliers are the farmers because they need their supply of ingredients in

producing their product. Their supplies also have the power to the prices they charge

because they understand that their hard works and the changing climate in our country

that sometimes affects the number of crops they harvest. Yes there is a limited number

supplier in town due to the developing at location the agriculture area is slowly depleting

and because of that they need to look for other supplier from other town to buy their

needed ingredients that they don’t have.

There is a chance that some customer switches to a substitute products since every

day the cravings of people change it is also the indirect customers like the mountain brew

coffee shop that also sells product that are similar to the products they offered. They

wanted to make their customers patronized their product by providing their good quality

products and services that satisfy them.

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The mountain brew, Cafe ni Kwan and Le’blanc are the shops there that they

considered as their competitors because they has similar products and they are all cafes so

they think a unique way on how to compete with them by offering organic and nutritious

product because the health of their costumer is their highest priority.

The major factor affecting the industry is in the economy because their

ingredients are more on fruits and veggies. The prices of their ingredients increase when

climate is not good because of the natural calamities that can destroy crops of the farmers

and can cause the shortage of their supplier and ingredients.

C. The Market

The target market of their business is the people of all ages. And because the

people are health conscious, their shop may grow faster due to their peculiar offered

products. They are in the 20th century and the people called us “millennial” because of the

developing technology some people forget about true beauty of nature, the adventurous

and warmth of the nature that bring them relaxation. The major trend in the market is in

the food industry, people want delicious, healthy and affordable food with good ambiance

so they thought a business that suit to the standards of customers and they developed

natural and healthy fruits and veggies into a delicious and nutritious meal that will like by

everyone.
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IV. STRATEGY

The competitors also have their own strategy to sell their products they think a

different way or promoting their products. Commonly they are giving flyers, coupons,

and brochures. Such business on broad mass market it target a large size of market such

as kids, teenagers, adults and even the old one.

The shop after a lot of nutritious and delectable meals that everyone enjoys and

the highlight of this experience are the breath taking views and the relaxing sound of

nature, they also offers beverages, smoothies and dessert that is new to their taste and

good to their health. The unique features of their product is they will use fresh and

organic ingredients on making foods and beverages and also the ambience and relaxing

beauty of nature that can encourage their target market to buy their product.

As mention earlier, they have a large target market. If they will go to their shop

they can relax and unwind from the stressful environment and spend time with their

friends and family while having a healthy and delectable foods and drinks. And they will

also like the idea of having a good ambiance and a mini library inside the shop. The

business values manage to put it up so that their customers like teenagers could afford the

food and have their time at its finest.

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V. BUSINESS MODEL EXPLANATION

The Nutries (Pastry Shop) offers a variety of products and service. From

beverages, smoothies, desserts, pastry and salad. It also serves customer with a great

experience in the shop by having a veranda wherein the customer enjoys the beauty of

nature, and also a relaxing background music that can set the customer’s mood.

The cost of their products offered in the shop when it comes to salad, vegetries for

single serving at P99.00 and family serving at P299.00 while their pastacumber salad

ranging at P99.00 per serving. In terms of beverages or what they called nutriverages they

offer apple mintries, orange zestries, pine appletries, and coconutries at only P69.00. The

flaming tea and cucumonade ranging at P89.00 per pitcher. In smoothies or what they

called smootries, they offer avocado smootries, spring detox green smootries, mango

smootries, banana smootries, mochamond smootries and melon smootries at P99.00 only.

And they also have dessert or what they called dessertries cucumber sorbetries, banana

sorbetries and pumpkin sorbetriesfor only P49.00. And lastly for their pastries they serve

pump your cakes for only P75.00 per slice and P390.00 for whole serving, oatries at

P39.00 only while their nutritato cupcake, carrotries cupcake, malungtries cupcake, and

spinachtries muffins for only P49.00 pesos.

The profitability of the business is 70-80 percent. For the business to stay in the

industry the founder invested in agricultural area. These are lifelong investment for the

business and will keep it operating for many years.

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VI. TEAM: MANAGEMENT AND ORGANIZATION

“Nutries” (Pastry Shop) started as partnership business since 2017. The owners

will use all their skills and knowledge that they acquired as a Bachelor of Science

Management Students.

Their business philosophy is based on responsibility and mutual respect. Their

business style reflects to them. “Nutries (Pastry Shop)” has a very strong organizational

culture and they believe on teamwork.

The business has people behind that give their all for the business to be

successful.

Jonalyn N. Pasion is the General Manager of the business. She is responsible for

overseeing all administrative functions in their business.

Adrian B. Sambile is the marketing manager of the business. He is responsible for

the planned images of the business such as print or video advertisement, public speaking

engagements, endorsement and printed literature. In short, he was in charge in marketing

operations.

Mary Joy T. Pandan is the sales manager of the business. She is responsible in

achieving growth and hitting sales targets by successfully managing the sales team, and

owning recruiting, objectives setting, coaching and performance monitoring of sales

representatives.
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Reggie Ann H. Gipgano is the supervisor of the business. She is the person in the

first-line management who monitors and regulates employee in their performance of

assigned to delegated tasks. She was authorized to recommend and/or disciplining,

promoting, punishing, rewarding, and other associated activities regarding the employees

in the departments.

Jason P. Pantaleon is the finance manager of the business. He is in charge on

monitoring the day-to-day financial operation within the business and contract outside

services for tax preparation, auditing, banking, investments, and other financial needs as

necessary.

Jerickson A. Paragua is the supply manager of the business. He will manage

purchasing and inventory of materials and makes recommendation to improve

productivity, quality and efficiency of operation.

Julie Pearl C. Batario is the pastry chef. She is responsible for creating, testing

and evaluating new pastry and dessert recipes and keeping a budget for the pastry

department.
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The owners managed their business together for the success of the business. They

developed the Nutries (Pastry Shop) to make it bigger and known in our country.
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VII. MARKETING PLAN

A. Product

Since coffee shops are the trending business nowadays they come up with this

business. Nutries (Pastry Shop) that offers a healthy and nutritious foods and beverages.

Aside from promoting healthy lifestyle of their customer they also appreciate the essence

of nature.

There is lot of similar products that commonly happens in every coffee shop so

they decided to make their product different from others by their ingredients and also by

the names. The list of their products was named by the owners and influenced by the

theme of their business:

 Raw vegetable salad

 Vegetries

 Cucumber pasta salad

 Pastatries

 Nutriverages (Beverages)

 Apple Mintries

 Orange Zestries

 Pine Appletries

 Coconutries

 Flaming tea (Red Tea)

 Cucumonade (Cucumber Lemonade)

 Smootries (Smoothies)
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 Avocado Smootries

 Spring Detox Smootries

 Mango Smootries

 Banana Smootries

 Mochamond Smootries

 Melon Smootries

 Dessertries (Desserts)

 Cucumber Sorbetries

 Banana Sorbetries

 Pumpkin Sorbetries

 Pastries

 Pump Your Cake (Pumpkin Cake)

 Oatries (Oatmeal Cookies)

 Nutritato (Potato Cupcake)

 Carrotries (Carrot Cupcake)

 Malungtries (Malunggay Cupcake)

 Spinachtries (Spinach Cupcake)

B. Pricing

The price of their products offered in the shop when it comes to salad, vegetries

for single serving at P99.00 and family serving at P299.00 while their pastatries salad

ranging at P99.00 per serving. In terms of beverages or what they called nutriverages they

offer apple mintries, orange zestries, pine appletries, and coconutries at only P69.00.
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The flaming tea and cucumonade ranging at P89.00 per pitcher. In smoothies or

what they called smootries, they offer avocado smootries, spring detox green smootries,

mango smootries, banana smootries, mochamond smootries and melon smootries at

P99.00 only. And they also have dessert or what they called dessertries cucumber

sorbetries, banana sorbetries and pumpkin sorbetries for only P49.00. And lastly for their

pastries they serve pump your cakes for only P75.00 per slice and P390.00 for whole

serving, oatries at P39.00 only while their nutritato cupcake, carrotries cupcake,

malungtries cupcake, and spinachtries muffins for only P49.00 pesos.

The owners will use Cost Price Strategy because their ingredients are seasonally

change and they based their pricing with their production cost.

C. Promotion

The business will try to influence purchasing decision by providing internet sites

in Facebook and Instagram pages, brochure, coupons, and flyers that will be distributed

in the upcoming opening to easily attract customers and to introduce our business to the

public. They will also give freebies like mugs, umbrellas, planners, and veggies key

chains if the customers purchased worth of P500.00. They also have special promos for

seasonal occasions like for birthdays they give discounts for the foods they purchased on

that special day.

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D. Distribution

The process of moving a product from its manufacturing source to its customers

the sales and distribution part of the marketing plan details how it is going to happen.

They offered coupon with discount on selected items to encourage the customer to visit

the shop. The business is convenient to those people who are passing by or going and

coming to Batangas via Kaybiang tunnel and there is no travelling interruption or traffic.

And they also have good ambience that will suit their mood while eating. They will also

maintain the cleanliness of their shop and make improvements if needed.

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VIII. OPERATIONAL PLAN

The day to day operations at their shop included on providing the best customer

service as well as a fun family atmosphere. They understand that the purpose of their

pastry shop business is to allow those in their stressful community to relax and have a

good time, and they remain focused on using our resources to provide a variety of

relaxation to their customers. To this end a big part of their operational plan is to continue

to attract new customers.

The shop is air conditioned and they serve their food after the payment. The

counter is located near the serving area for their customers to easily give their payment

hassle free. They serve their customers from the serving table or giving them the menu

list right on the table where their customers seated and taking their order to the serving

area. The list of products with prices is in the serving area and also in the mini menu list.

The customers seated in counter table to see their demonstrations in making their product

and giving them friendly communication enough to kill their boredom. All the items in

the menu are originally made by the owners. These are the procedures on how they make

their products:

How to make a Nutries Cupcakes:

Ingredients

 4 large eggs

 2 cups sugar
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 1 cup canola oil

 2 cups all-purpose flour

 2 teaspoons ground cinnamon

 1 teaspoon baking soda

 1 teaspoon baking powder

 1 teaspoon ground allspice

 1/2 teaspoon salt

 3 cups grated (choices: carrot, potato, spinach, malunggay)

CHUNKY FROSTING:

 1 package (8 ounces) cream cheese, softened

 1/4 cup butter, softened

 2 cups confectioners' sugar

 1/2 cup sweetened shredded coconut

 1/2 cup chopped pecans

 1/2 cup chopped raisins

Directions

1. In a large bowl, beat the eggs, sugar and oil. Combine the flour, cinnamon, baking

soda, baking powder, allspice and salt; gradually add to egg mixture. Stir in your

choice of vegetable.
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2. Fill greased or paper-lined muffin cups two-thirds full. Bake at 325° for 20-25

minutes or until a toothpick inserted near the center comes out clean. Cool for 5

minutes before removing form pans to wire racks.

3. For frosting, in a large bowl, beat cream cheese and butter until fluffy. Gradually

beat in confectioners' sugar until smooth. Stir in the coconut, pecans and raisins.

Frost cupcakes. Store in the refrigerator. Yield: 2 dozen.

How to make Vegetries:

Ingredients

 2 medium ripe tomatoes

 2 cups cabbage- thinly shredded

 1 capsicum- cut into thin strips

 2 carrots- sliced into thin strips

 2 Tbsp vinegar

 1 Tbsp honey

 2 tsp salt

 A dash of pepper

 2 Tbsp yogurt

Direction

1. Cut the tomatoes into 8 segments each lengthwise.

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2. Mix the yoghurt, salt, pepper, honey and vinegar and blend well together.

3. Keep both the vegetables and the dressing refrigerated separately until ready to

serve.

4. When ready to serve, mix the vegetables and the dressing together.

5. This has to be done at the last minute, as the vegetables combined with the salt

tend to shed their juices and thus become limp and soggy if kept too long.

How to make Oatries:

Ingredients

 1 cup butter, softened

 1 cup white sugar

 1 cup brown sugar

 2 eggs

 1 teaspoon vanilla extract

 2 cups all-purpose flour

 1 teaspoon baking soda

 1 teaspoon salt

 1 ½ teaspoons ground cinnamon

 Nuts or raisins
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 Shredded malunggay

 Shredded spinach

 3 cups of quick cooking oats

Directions

1. In a medium bowl, cream together butter, white sugar, and brown sugar. Beat in

eggs one at a time, then stir in vanilla. Combine flour, baking soda, salt, and

cinnamon; stir into the creamed mixture. Mix in oats, shredded malunggay or

spinach and nuts. Cover, and chill dough for at least one hour.

2. Preheat the oven to 375 degrees F (190 degrees C). Grease cookie sheets. Roll the

dough into walnut sized balls, and place 2 inches apart on cookie sheets. Flatten

each cookie with a large fork dipped in sugar.

3. Bake for 8 to 10 minutes in preheated oven. Allow cookies to cool on baking

sheet for 5 minutes before transferring to a wire rack to cool completely.

How to make Nutriverages:

1. Wash the (fruit of your choice) carefully and cut away any bad spots or worms.

You don’t have to peel them—in fact—the peels contain a lot of nutrition so it’s

better to leave them on because they are organic. Cut the (fruits of your choice)

into quarters, discarding the seeds, and toss them in a large pot.

2. Add enough water to almost cover it and bring them to a simmer. Cook the (fruit

of your choice) until they’re very soft and pulpy—about one hour. Line a colander

with cheesecloth and pour the (fruit of your choice) into the colander. Press down
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on them with a spatula or spoon to extract more of the juice. Another option

would be to grind the (fruit of your choice) using a food mill and then place the

(fruit of your choice) mash in the colander.

3. Let the juice drain for several hours or overnight in the refrigerator. If you like,

you can pass the juice through a coffee filter, jelly bag, or cheesecloth to filter it. I

prefer unfiltered juice for its taste and added nutrition. Heat the juice in a stockpot

to simmering. Taste it and sweeten it if necessary with sugar or honey.

How to make Pump Your Cake:

 2 cups white sugar

 1 ¼ vegetable oil

 1 teaspoon vanilla extract

 2 cups mashed pumpkin

 4 eggs

 2 cups all-purpose flour

 3 teaspoons baking powder

 2 teaspoons baking soda

 ¼ teaspoon salt

 2 teaspoons ground cinnamon

 1 cup chopped walnuts (optional)

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Directions

1. Preheat oven to 350 degrees F (175 degrees C). Grease and flour a 12x18 inch

pan. Sift together the flour, baking powder, baking soda, salt and cinnamon. Set

aside.

2. In a large bowl combine sugar and oil. Blend in vanilla and pumpkin, then beat in

eggs one at a time. Gradually beat in flour mixture. Stir in nuts. Spread batter into

prepared 12x18 inch pan.

3. Bake in the preheated oven for 30 minutes, or until a toothpick inserted into the

center of the cake comes out clean. Allow to cool.

How to make Smootries:

 ½ cups to 2 cups fruit

 1 to ½ cups milk

 3 to 4 ice cubes

 ½ greens (optional)

 2 to 4 tablespoons protein (optional)

 Sweeter to taste (optional)

Directions

1. Take out your blender or food processor. 

2. Start with fruit if making a fruit smoothie. Fresh or frozen fruit will make up the base

of your smoothie. Cut the (fruit/Veggie of your choice) in cubes.

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3. Add the milk.

4. Add protein (optional).

5. Add some green (optional).

6. Add a sweetener (optional).

7. Give your smoothie some more flavor (optional). 

8. Add ice cubes.

9. Blend it. Put the lid on the blender, and turn it on no higher than medium. Once the

blender starts to "digest" the fruit, turn it up one notch at a time. If there isn't a

"smoothie" or "shake" function, "puree" works as well. Start slow. Let the blender chew

about 1 minute.

10. Turn off the blender once the ice cubes are done blending and let it set for a minute. 

11. Garnish your smoothie. Loose berries, a wheel of lemon or lime, a sprig of mint, or

flat-leaf parsley can add a fun touch.

The main and other tables are customers seated and will give their orders from the

serving area through waiter or waitress. The main table is the center of the shop, the

customers that will seat there are usually couples, best friends and acquaintances. The

second set of tables is located in the front part of the shop, the customers there is a huge

bunch of friends or families. And lastly, the tables in the veranda is for the customers

who want to see the beauty of nature and to breathe fresh air. There is a product display

in their hall wherein the customers can see their actual products. Through the product

display in their hall, they also serve by accepting take-outs and making it convenient and
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also to those customers who is in hurry. Their front yard is open to their customers and

giving them a privilege to walk-in and choose their main products itself. The comfort

rooms is located far away from the customers’ table areas. The office area is only for the

authorize staffs wherein they make their inside duties and responsibilities.

They have find that having a mini library and offering healthy meals was a huge

selling point in the pastry shop, and they intended to use their power to implement this

and bring new people through others. They plan for an instance to establish a number of

mutually beneficial relationships to their customers and these customers will refer them

to their friends and relatives to have new customers in their shop. They feel that these

relationships is mutually beneficial because it provide them more customers and they

provide them a relaxing, breathing taking and nutritiously delicious food at an affordable

price. They will enjoy the great success in using this strategy and they intend to fully

exploit and develop this strategy in the near future.

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IX. FINANCIAL PLAN

Cash are stated at face value. Cash also includes cash in banks and cash on hand

which is being utilized to fund expenses on a day to day transaction of the company and

cash in banks which consist of current and savings accounts. Cash in bank in savings

accounts earn interest at the respective bank deposit rates and these are deposits held at

call with banks. Cash on hand are intended as working funds for a small amount of

expenses such as periodicals, reproduction cost, transportation, etc.

Cash on Hand is used to defray petty expenditures of the Company subject for

replenishment. Cash in bank consists of deposits from reputable local banks which earn

interest at the prevailing bank deposit rates.

Property, plant and equipment (PPE) are tangible assets that are held for use in the

production or supply of goods and services, for rental to others or for administrative

purposes and are expected to be used during more than one period.

The initial cost of property and equipment comprises its purchase price and any

directly attributable costs of bringing the asset to its working condition and location for

its intended use. These can include the costs of initial delivery and handling, installation

and assembly, and testing of functionality. Expenditures incurred after the property and

equipment have been put into operations, such as repairs and maintenance and overhaul

costs, are normally charged to operations in the period the costs are incurred. In

situations where it can be clearly demonstrated that the expenditures have resulted in an

increase in the future economic benefits expected to be obtained from the use of an item

of property, and equipment beyond its originally assessed standard of performance, the
 27

expenditures are capitalized as additional costs of property and equipment. Cost also

includes any asset retirement obligation and interest on borrowed funds used. When

assets are sold or retired, their costs and accumulated depreciation, amortization and

impairment losses, if any, are eliminated from the accounts and any gain or loss resulting

from their disposal is included in the statement of operations of such period. Property and

equipment are stated at cost less accumulated depreciation and amortization and any

impairment in value.

For financial reporting purposes, depreciation and amortization are calculated on

a straight-line basis over the useful lives of the assets. This account represents the

statutory liabilities and are measured initially at their transaction price and subsequently

recognized at amortized costs less settlement payments. Obligations to the government

are remitted on the following month after being withheld from various income recipients.

This account includes SSS, Philhealth, HDMF and Expanded Withholding Tax Payables.

The tax currently payable for the year is 30% based on Regular Corporate Income

Tax (RCIT). Taxable profit differs from net profit as reported in the statements of

operations, because it excludes items of income or expense that are taxable or deductible

in other years and it further excludes items that are never taxable or deductible.

Income taxes payable in refers to the taxable profit for the current

period. Unpaid current tax and prior periods is recognized as a liability. If the amount

already paid exceeds the amount due for those periods, the excess is recognized as asset.
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Owner's Capital refers to the initial and additional investments of the Partners to

the Company plus income from operations.

The Company’s revenue recognition policies require the use of estimates and

assumptions that may affect the reported amounts of revenues and receivables.

Differences between the amounts initially recognized and actual settlements are taken up

in the accounts upon reconciliation. However, there is no assurance that such use of

estimates may not result to material adjustments in future periods.

Sales refer to the total sales projected to be earned by the Company within the

projected period of three (3) years.

Costs and expenses are decreases in economic benefits during the reporting period

in the form of outflows, depletions of assets or incurrence of liabilities that result in

decreases in equity, other than those relating to distributions to equity investors.

Salaries and wages refers total renumeration paid to employees hired by the

partners to look after in the Company's operation.

Supplies refer to goods use to support and produce the main product offer by the

Company.

Utility expense refers to power, light and water expense paid periodically

throughout the Company's operation.

Rent expense refers to payment for the land and shop location to the owner less

the corresponding expanded withholding tax remitted to BIR.

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Government contribution expense refers to the portion of share of the employer to

the remittance payment to government bodies such as SSS, Philhealth and HDMF to be

paid on corresponding due date every after end of the month.

Taxes and licenses refers to annual registration to Bureau of Internal Revenue

plus taxes related expenses such as Sanitary permit, business permit and othe permit and

clearances.

Depreciation expense is the expense calculated on a straight-line basis over the

useful lives of the assets. This is a non-cash expense of the Company.

Transportation and travel is refers to expenses incurred by the partner in

transporting raw goods to the shop location. It is also the expense incurred by the partner

during their meetings located outside the shop to prospective huge clients such as Schools

or Cafeteria.

Office supplies refers to expenses incurred by the office/ administration. This

refers to papers, inks and other supplies used inside the office premises.

Repairs and maintenance refers to expenses incurred in maintaining and support

varies machines and equipments used in producing the main products. It also includes

repairs in the office.

Interest Income is recognized as the interest accrues (taking into account the

effective yield on the asset). It also refers to income incurred from cash deposits to banks.
 30

Provision for income tax refers to total tax expenses incurred for the year by the

Company. This can be computed under Regular Income Tax (RCIT) or Minimum

Corporate Income Tax (MCIT) whichever is higher.

NUTRIES (PASTRY SHOP)

COMPARATIVE STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31
2019 2018 2017

ASSET

CURRENT ASSET:
CASH ON HAND Php 5,000.00 Php 5,000.00 Php 5,000.00
CASH IN BANK 3,463,644.66 1,890,985.18 1,318,251.30
TOTAL CURRENT ASSET 3,468,644.66 1,895,985.18 1,323,251.30

NONCURRENT ASSET
MACHINERY AND EQUIPMENT 12,494.00 12,494.00 12,494.00
FURNITURES AND FIXTURE 53,497.00 53,497.00 53,497.00
ACCUMULATED DEPRECIATION (40,754.61) (27,169.74) (13,584.87)
TOTAL NONCURRENT ASSET 25,236.39 38,821.26 52,406.13

TOTAL ASSET Php 3,493,881.05 Php 1,934,806.44 Php 1,375,657.43

LIABILITIES AND OWNER'S EQUITY

SSS PAYABLE Php 3,400.00 Php 2,550.00 Php 1,700.00
PHILHEALTH PAYABLE 400.00 300.00 200.00
PAGIBIG PAYABLE 400.00 300.00 200.00
EXPANDED WITHHOLDING TAX PAYABLE 400.00 400.00 400.00
INCOME TAX PAYABLE 530,998.01 214,581.42 159,603.41
TOTAL LIABLITIES 535,598.01 218,131.42 162,103.41

OWNERS EQUITY:
OWNER'S CAPITAL, BEGINNING 1,716,675.01 1,213,554.02 840,000.00
NET INCOME AT THE END OF THE PERIOD 1,241,608.04 503,121.00 373,554.02
TOTAL OWNER'S EQUITY 2,958,283.05 1,716,675.01 1,213,554.02

TOTAL LIABILITIES AND OWNER'S EQUITY Php 3,493,881.05 Php 1,934,806.44 Php 1,375,657.43
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 32

NUTRIES (PASTRY SHOP)

INCOME STATEMENT
FOR THE PERIOD ENDING DECEMBER 31
2019 2018 2017

SALES Php 2,481,310.80 1,282,320.00 Php 1,008,000.00

DIRECT COST
SALARIES AND WAGES 444,912.00 333,684.00 282,000.00
SUPPLIES 29,562.15 25,300.59 19,563.75
UTILITIES EXPENSE 94,694.15 85,620.63 72,000.00
RENT EXPENSE 48,000.00 48,000.00 48,000.00
GOVERNMENT CONTRIBUTION EXPENSE 8,600.00 6,450.00 4,300.00
TOTAL DIRECT COST 625,768.30 499,055.22 425,863.75

GROSS PROFIT 1,855,542.50 783,264.78 582,136.25

OPERATING EXPENSES
TAXES AND LICENSES 47,265.78 42,693.50 30,240.00
DEPRECIATION EXPENSES 13,584.87 13,584.87 13,584.87
DEPRECIATION EXPENSES 9,578.00 6,855.00 3,000.00
OFFICE SUPPLIES 7,560.00 2,500.00 1,800.00
REPAIRS AND MAINTENANCE 7,560.50 2,360.00 1,500.00
TOTAL OPERATING EXPENSE 85,549.15 67,993.37 50,124.87

OTHER INCOME
INTEREST INCOME 2,612.69 2,431.01 1,146.05

NET INCOME BEFORE TAX Php 1,772,606.04 Php 717,702.42 Php 533,157.43

PROVISION FOR INCOME TAX Php 530,998.01 214,581.42 159,603.41

NET INCOME (LOSS) Php 1,241,608.04 Php 503,121.00 Php 373,554.02

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NUTRIES (PASTRY SHOP)

COMPARATIVE STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDING DECEMBER 31
2019 2018 2017

Cash flows from operating activities

Net Income (Loss) Php 1,241,608.04 Php 503,121.00 Php 373,554.02
Adjustment
Depreciation 13,584.87 13,584.87 13,584.87
Loss on sales of fixed assets
Operating income before working capital changes 1,255,192.91 516,705.87 387,138.89
Changes in operating assets & liabilities
Decrease(Increase) in:
Trade and other receivables
Other receivable
Increase(decrease) in
Trade and other payables 317,466.58 56,028.01 162,103.41
Other current liabilities
Cash generated from operations 1,572,659.49 572,733.88 549,242.30

Cash flows from investing activities

Reduction in (additions to):
Purchase of property, plant & equipment (65,991.00)
Other Assets
Net cash used in investing activities - - (65,991.00)

Cash flows from financing activities

Owner's capital 840,000.00
Net Cash used in Financing Activities - - 840,000.00

Net increase/(decrease) in cash 1,572,659.49 572,733.88 1,323,251.30

Cash and cash equivalent at beginning of period 1,895,985.18 1,323,251.30 -
CASH AT END OF PERIOD 3,468,644.66 1,895,985.18 1,323,251.30
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X. APPENDIX

A. Logo

Nutries
 35

B. Blueprint of Nutries Shop

 36

C. Flyer and Coupon

 37

D. Magazines
 38

E. Maps
39