Book A Book

book-a-Book
“Can’t afford, We got You”
A Feasibility Study Presented to

The Faculty of the College of Business and Accountancy
University of Nueva Caceres
City of Naga
In Partial Fulfillment
of the Requirements for the Degree of
Bachelor of Science in Accountancy
Berja, Lea B.
Cantorne, James B.
Dacuya, Margilyn C.
Mendez, Emily B.
Rey, Ritchie Ed
December 20, 2022

APPROVAL SHEET
This Feasibility Study entitled “book a Book”,

prepared and submitted by LEA B. BERJA, JAMES B.
CANTORNE, MARGILYN C. DACUYA, EMILY B. MENDEZ, and
RITCHIE ED REY, in partial fulfillment of the
requirements for the degree of BACHELOR OF SCIENCE IN
ACCOUNTANCY, has been presented for critiquing, review
and editing by the faculty of the College of Business and
Accountancy, and is given a grade of ________ on December
2022.
MARIA CARLA R. MAÑAGO, CPA

Adviser
---------------------------------------------------------
PANEL OF EXAMINERS
AILEEN MENDOZA, CPA

Chairman
KATHLEEN A. MARTINEZ JACELYN SALVAMANTE, MM

Member Member
---------------------------------------------------------
Accepted and approved in partial fulfillment of the

requirements for the degree of Bachelor of Science in
Accountancy.
NORA ELIZABETH F. MANIQUIZ, PhD., CPA

OIC Dean, College of Business and Accountancy
City of Naga
COLLEGE OF BUSINESS AND ACCOUNTANCY
C E R T I F I C A T I O N
This is to certify that this Feasibility Study

entitled, “book a Book”, prepared and submitted by LEA B.
BERJA, JAMES B. CANTORNE, MARGILYN C. DACUYA, EMILY B.
MENDEZ, and RITCHIE ED REY has been examined, edited, and
found to be in accordance with the
suggestions/recommendations of the panel of examiners.
NORA ELIZABETH F. MANIQUIZ, PhD., CPA

OIC Dean, College of Business and Accountancy
ACKNOWLEDGEMENT
The proponents extended their deepest gratitude to
the people who offered their assistance for the
accomplishment of the feasibility study. It will be
impossible to complete this study without the effort and
guidance of the following:
Their feasibility study adviser, Maria Carla R.
Mañago, CPA, who allotted her time, shared her knowledge
through suggestions and offered guidance to the
researchers for the success of the study.
The panelists, Ma’am Jacelyn Salvante, MM, Ma’am
Aileen Mendoza, CPA, and Ma’am Kathleen A. Martinez, who
shared their time to assess the researchers’ project and
gave recommendations on how to yield the best outcome.
To the respondents, for their kind, generous and
active support, patience, and deep understanding in
answering the online and on-site survey questionnaire,
without them, this feasibility study will not be made
possible.
Their families who were always there to give their
full moral and financial support.
Their colleagues, who uplifted the researchers'

mood and confidence when facing hardships throughout the
study.
Above all, the researchers expressed their
sincerest appreciation to God Almighty. His presence
always enlightens the researchers' minds and gives hope
and strength to achieve the study's goals.
The Researcher
DEDICATION
This feasibility study is entirely devoted to our
wonderful parents, who have showered us with blessings,
resources, and wisdom in any way they can. This study
would not have been accomplished without their
inspiration.
We also dedicate this study to our professors for
their constant assistance and advice in completing the
feasibility study successfully.
And above all, to our Almighty God, with His
unending love, motivation, and wisdom that He shared to
accomplish this study that somehow in the very near
future may contribute to help those proponents who will
be making the feasibility study.

TABLE OF CONTENTS
Title Page
Approval sheet i
Certification ii
Acknowledgement iii
Dedication v
Table of Contents vi
Executive Summary xii
Chapter I. Marketing Study 1
Product and Market Description 1
Market Study 3
Demand Analysis 12
Price Analysis 15
Marketing Strategies 26
Anticipated Sales Volume of the Product for 3
35
yrs.
Chapter II. Management Study 42
Business Structure 42
Vision, Mission, Goals, and Objectives 44
SWOT Analysis 47
TOWS Analysis 48
Plantilla of the Organization 51
Manpower Requirements 56
Pre-operating procedures 66
Chapter III. Technical Study 74
Service Specification 75
Service Process and Flowchart 77
Technical Specification of the Business 83
Inventory Management 86
Fixed Assets 87
Business Location and Floor Plan 89
Solid Waste Management 92
Quality Control 92
Chapter IV. Financial Study 94
Financial Assumptions and Projections 94
Partners’ Capital Requirement 112
Projected Income Statement 116
Projected Balance Sheet 118
Projected Cash Flow Statement 121
Notes to Financial Statements 124
Financial Statement Analysis 141
Accounting Policies, Mechanism, and Internal
163
Control
Chapter V. Socio-Economic Study 173
Social Benefits 173
Environmental Benefits 174
Economic Benefits 175
Bibliography 176
Appendices 178
Appendix A. Survey Questionnaire (Google forms) 178
Appendix B. Survey Questionnaire Face to Face 189
Appendix C. Documentation for Face-to-Face
196
Survey
Appendix D. Partnership Agreement 198
Appendix E. Curriculum Vitae 201
Pages of Tables and Figures

Figure 1.1. book-a-Book 1
Table 1.1. Demographic information of the
3
respondents
Table 1.2. Perception of respondents on
6
acquiring accounting textbooks
Table 1.3.A. Experience in acquisition of
7
accounting textbooks
Table 1.3.B. Respondents’ experience in
acquiring accounting textbooks 8
Table 1.4.A. Respondents’ experience in
10
reselling textbooks
Table 1.4.B. Experience in reselling
11
textbooks to acquire reviewer books
Table 1.5. Respondents’ insight on the
12
proposed business
Table 1.6. Respondents’ preference on
13
rental term
Table 1.7. Factors affecting respondents on
14
availing the product
Table 1.8. Respondents’ affordability of
15
the product
Table 1.9. Recommendations of respondents
24
on the packages offered
Table 1.10. Respondents’ recommendation of
25
proposed business to others
Table 1.11. Respondents’ recommendation on
25
the web design
Figure 1.2. book-a-Book logo 27
Figure 1.3. J. Hernandez Avenue Naga City
29
Google Map Location
Figure 1.4. book-a-Book Website Home 31
Figure 1.5 Order, Delivery and Return
34
Process Flowchart
Table 1.12.A Expected customers in 3 year
38
period
Table 1.12.B. Expected sales in 3 years 39
Figure 2.1. Business logo 42
Table 2.1. SWOT analysis of the business 47
Table 2.2. TOWS analysis of the business 48
Figure 2.2. Organizational structure of
51
book-a-Book
Table 2.3 - Positions, qualifications,
56
duties and responsibilities
Table 2.4.A. Projected administrative
salaries for year 3 59
Table 2.4.B. Projected administrative
59
salaries for year 1 and 2
Table 2.5.A. Employees and employer
60
contribution for year 1
Table 2.5.B. Employees and employer
61
Table 2.5.C. Employees and employer
61
Table 2.6 Summary of employee benefit
62
accounts
Figure 2.3. Hiring Process and Recruitment
64
of the Employees
Figure 3.1. book-a- Book 74
Figure 3.2. Shop Packages in our Website 76
Figure 3.3. Shop item in our Package 77
Figure 3.4. Website Homepage 78
Figure 3.5. Registration form 78
Figure 3.6. Confirmation for Submitting an
79
account
Figure 3.7. Books and Packages 79
Figure 3.8. Online Payment 81
Figure 3.9. Shipping and Delivery 82
Figure 3.10. Returns 82
Table 3.1. Price per package 83
Table 3.2. List of properties 88
Figure 3.11.A. Floor Plan (Top View) 89
Figure 3.11.B. Floor Plan (Conference Area) 90
Figure 3.11.C. Floor Plan (Waiting Area) 90
Figure 3.11.D. Floor Plan (Storage) 91
Figure 3.12. Solid Waste Management 92
Table 4.1.A. Comprehensive customers’
95
projection
Table 4.1.B. Comprehensive sales
96
projections
Table 4.2.A. Cost of inventory projections 99
for year 1
Table 4.2.B. Cost projection of books for
104
rent
Table 4.3. Estimated shipping payments 108
Table 4.4.A. Year 1 and 2 administrative
108
employees’ benefit
Table 4.4.B. Year 1 laborers’ benefit 109
Table 4.4.C. Year 2 laborers’ benefit 109
Table 4.4.D. Year 3 administrative
110
employees’ benefit
Table 4.4.E. Year 3 laborers’ benefit 110
Table 4.5. Estimates of cleaning and
111
utilities expenses
Table 4.6. Partners’ capital requirement 115
Table 4.7. Projected income statement
117
covering 3 periods
Table 4.8. Projected balance sheet covering
119
3 periods
Table 4.9. Projected cash flow covering 3
122
periods
Table 4.10. Lease liability 127
Table 4.11. Dismantling provision 127
Table 4.12. Cost data of fixed assets 129
Table 4.13.A. Facebook ads payment 132
Table 4.13.B. Marketing research cost 132
Table 4.14.A. Tax adjustments for
134
depreciation
Table 4.14.B. Tax adjustments for interest
135
payment
Table 4.14.C. Summary of tax expense 135
Table 4.15. Profit distribution schedule 137
Table 4.16. Cash budget 137
Table 4.17. Statement of changes in
140
partners’ equity
Table 4.18.A. Common-size income statement 142
Table 4.18.B. Common-size balance sheet 143
Table 4.19. Financial ratios 145
Table 4.20. Payback period of the firm 162
Figure 4.1. Processing sales 164
Figure 4.3. Processing return of books for
167
rent
Figure 4.3. Purchase and inventory checking 169
Figure 4.4. Year-end activities 171
EXECUTIVE SUMMARY
NAME OF BUSINESS
The name of the business is the book A Book which
is where you can rent a book.
LOCATION OF THE BUSINESS
The book A Book is an online shop. Hence, it will
be accessible in a virtual environment like a website, on
its domain -- bookabook022.wixsite.com/book-a-book.
The entity will also establish a physical office
for its administrative processes and transactions needed
for the service. The physical office will be located at
J. Hernandez Ave., Naga City, Camarines Sur.
MARKETING ASPECT
The book-a-Book is an online shop exclusive only for
accounting majors students, CPA candidates, and CPA
passers, that may access accounting books, but have
difficulty acquiring books in general.
The target market of the business are those
accountancy students, CPA candidates, and CPA passers.
They can be of 16 ages and above, female or male, and

they can be from any geographic location in the
Philippines.
The online shop includes subjects that are in the
syllabus of the Licensure Examination for Certified
Public Accountants such as (CPALE): Management Advisory
Services, Advanced Financial Accounting and Reporting,
Financial Accounting and Reporting, Regulatory Framework
for Business Transaction, and Auditing. Book A Book
offers different packages to fit the customers’ budgets
and needs.
MANAGEMENT ASPECT
The business structure is a General Partnership
composed of a Human Resource Manager, Marketing Manager,
Procurement Manager, and Finance Manager. These people
will work hand-in-hand with each other to make sure that
the business is running smoothly and that the customer's
demands and needs are met.
The business will also require manpower such as an
Accounting expert and an IT expert. These people are the
ones who will interact with the customers and will help
them with troubleshooting and maintaining the convenience
and security of using the website.

The business planning phase will be conceptualized
for the whole month of August. The promotion starts from
the last week of November to the third week of December.
A whole month is sufficient to continuously attract
customers before the commencement of the business. The
start of the operation will be at the end of December.
TECHNICAL ASPECT
The book-a-Book will offer different features for
specific needs. To have access to the shop, here are
easy-to-follow steps: first, access the web address at
bookabook022.wixsite.com/book-a-book; second, create an
account by registering or signing in; third, select the
desired package that fits the budget and need; and
lastly, select the payment method to checkout.
FINANCIAL ASPECT
The total investment of the partners in order to
start the operation is 17,872,766.67 pesos which are
divided equally among themselves. The expected customers
of the business are based on the total accountancy
students apportioned by three schools near the
prospective business place. These are discounted by the
margin of error of 50% and allocated into the packages in

their respective rental term. The business will follow
full PFRS for its accounting. A finance lease is used for
the accounting of its lease contracts, the cost model is
used for the measurement of its fixed asset, and there is
an adjustment for tax purposes. On average, the current
ratio of the company is 18 to 1, the average daily supply
is 254 days, 95% of the resources are financed by owners,
and the average net profit margin is 7%. It will take 14
years, 5 months, and 16 days for partners to recover
their invested resources.
SOCIO-ECONOMIC ASPECT
The main purpose of the business is to lessen the
burden and difficulty of accessing books in the
accounting field. The website offers a number of packages
that include the rental of textbooks and the receipt of
review books upon satisfactory return of the textbooks.
Additionally, the company will provide numerous
accounting and technology job opportunities, which will
increase the employment rate in the nation and support
economic growth, and will enable other young
professionals to advance in their fields. Moreover, the
business will not affect the environment negatively as
its one main advantage is environmental friendliness.

Instead of purchasing books, students can save money by
renting them, and reducing the need for reprinting. Fewer
trees and papers will be consumed and the customers can
spare the environmental stress and preserve thousands of
trees, all of which contributed to the preservation of
the ecosystem, by opting to rent textbooks rather than
purchasing new ones.

CHAPTER I
MARKETING STUDY
The marketing component of a feasibility study is
crucial because it identifies the level of demand for the
proposed product. In addition, it starts developing
marketing strategies and plans to advertise and expand
the new product's market. The product and market
descriptions, demand analysis, marketing strategies, and
the anticipated volume of the product over the next three
(3) years are all included in this chapter.
PRODUCT AND MARKET DESCRIPTION
Figure 1.1. book-a-Book
Figure 1.1 shows the logo that will be permanently
used by the prospect business in its probable and
continued operation. The book-a-Book is a website that
1
lets customers, who are accounting majors and with a plan
to take the licensure examination for certified public
accountants, browse titles and rent them directly on the
website. The website is offering a variety of packages
that contain rental of textbooks and receipt of review
books upon return of the textbooks in good condition. Its
purpose is to lessen the burden or difficulty of
accessing books in the accountancy field, which are
observed to be having these difficulties.
The target customers of book-a-Book are accountancy
students, CPA candidates, and CPA passers. They can be of
16 ages and above, female or male, and they can be from
any geographic location in the Philippines. The
description is delimited only to accounting majors which
include BS Accountancy, BS Management Accounting, BS
Internal Auditing, BS Accounting Information System, and
others. Business Administration courses are excluded from
the description as they are not directly related to the
qualification to take the CPA examination and there are
no bridging programs from Business Administration courses
to qualify to take the mentioned exam. The target
customers of this product are defined as having
difficulty acquiring books in general - some customers
2
may find it easy to purchase or access accounting books
but in general, most are experiencing difficulties.
Market Study
In order to assess the feasibility in terms of
customer participation in this product, a survey is
conducted. The survey is conducted both online and
physical surveys which has a target of at least 50
respondents. There are 15 physical surveys and 36 online
surveys that are gathered.
Table 1.1. Demographic information of the respondents
Particulars Frequency Percentag Rank

e
Age
16 - 19 years old 3 5.88% 3
20 - 22 years old 43 84.31% 1
23 - 25 years old 4 7.84% 2
Beyond 25 1 1.96% 4
Biological Gender
Male 10 19.61% 2
Female 41 80.39% 1
Course or Degree
BS Accountancy 47 92.16% 1
BS Accounting 3 5.88% 2
Information System
BS in Accounting 1 1.96% 3
Technology
Highest Educational Attainment
3
Undergraduate 43 84.31% 1
CPA Candidate 7 13.73% 2
CPA Passer 1 1.96% 3
Year Level (for undergraduate)
1st year 3 5.88% 4
2nd year 2 3.92% 5
3rd year 4 7.84% 3
4th year 35 68.63% 1
Graduate 7 13.73% 2
Table 1.1 shows the demographic profile of the
respondents with regard to age, biological gender, course
or degree, highest educational attainment and year level
(for undergraduate).
There are more respondents whose age is ranging
from 20 to 22, who are female, with a degree of BS
Accountancy, who are still undergraduate, and whose year
level is 4th year. There are 3 respondents with ages 16
to 19, 43 ages 20 to 22, 4 ages 23 to 25, and 1 age
beyond 25. There are 10 male respondents and 41 female
respondents. There are 47 respondents with a BS
Accountancy degree, 3 with a BS Accounting Information
System degree, and 1 BS Accounting Technology degree.
There are 43 respondents who are undergraduates, 7 CPA
Candidates, and 1 CPA Passer. There are 3 first-year
4
respondents, 2 second-year respondents, 4 3rd year
respondents, 35 4th year respondents, and 7 graduate
respondents.
This means that the result of the survey will be
most affected by respondents with age 20 to 22, who are
females, with a degree in BS Accountancy, who are still
undergraduate, and currently in the 4th-year level. The
result does not conclude that accounting majors with a
goal path leading to CPA licensure examination are mostly
20 to 22 years old, female, with a degree in BS
Accountancy, undergraduate, and currently 4th year.
Moreover, the result of the survey will be most affected
by undergraduate respondents studying at the University
of Nueva Caceres.
The table shows the factors that affect the
respondents’ perception of purchasing accounting books
for their academic use. Respondents agree that the books
they acquired or plan to acquire are required by their
teacher or its equivalent. They strongly agree that books
acquired online are much cheaper than any other means of
book acquisition. Also, they strongly agree that book
piracy is illegal and should not be tolerated. Finally,
they strongly agree that accounting textbooks are
expensive.
5
Table 1.2. Perception of respondents on acquiring
Particulars Weighted mean Interpretation
Books are required by 4.1765 Agree

teacher
Textbooks acquired online 4.3137 Strongly Agree

are cheaper
Book piracy is illegal 4.4509 Strongly Agree

and should not be
tolerated
Accounting textbooks are 4.7451 Strongly Agree

expensive
Legend:
5.00 - 4.22: Strongly Agree
4.21 - 3.42: Agree
3.41 - 2.62: Neutral
2.61 - 1.82: Disagree
1.81 - 1.00: Strongly Disagree
Table 1.2 shows the perception of respondents on
acquiring accounting textbooks. This is structured in a
way that the respondents can indicate a rate and whether
they agree and disagree on such statements.
The table shows the factors that affect the
respondents’ perception on purchasing accounting books
for their academic use. Respondents agree that the books
they acquired or plan to acquire are required by their
teacher or its equivalent. They strongly agree that books
acquired online are much cheaper than any other means of
book acquisition. Also, they strongly agree that book
6
piracy is illegal and should not be tolerated. Finally,
they strongly agree that accounting textbooks are
expensive.
This strengthens the foundation of the proposed
business as the respondents are experiencing difficulties
on means to acquire accounting books. This also means
that the respondents prefer online transactions for the
acquisition of books than buying physically in a certain
bookstore. On average, respondents treat book piracy as a
morally deceptive method of buying books.
Table 1.3.A. Experience in acquisition of accounting
textbooks
Particulars Yes No
Have you ever bought books? 98.04% 1.96%
Have you ever photocopied large 47.06% 52.94%

sections of a textbook or used a
photocopied textbook instead of
purchasing it?
Are you always able to buy the books 45.10% 54.90%

needed in the subject (books required
in the study guide)?
Are you always able to buy the books 45.10% 54.90%

you need in your study (books that
you think will help you as additional
resources)?
Have you experienced buying pirated 68.63% 31.37%

books?
Do you often buy books for your 78.43% 21.57%

specialization? (Financial
Accounting, Management, Law, Audit,
7
and Tax)
Table 1.3 shows the experience of the respondents
in acquiring textbooks. To assess it, they are given
situations that are answerable by yes or no.
Out of 51 respondents, 98% have experienced buying
books, 47% have experienced photocopying large sections
of a textbook or used a photocopied textbook, 45% are
always able to buy the books required by the course, 45%
are always able to buy the books they think they needed
as additional resources, 69% have experience buying
pirated books, and 78% are often buying books for their
specialization.
Accounting majors have experienced doing illicit
methods just to access textbooks as their resources for
studying, this may be due to their understanding or
perception that accounting books are expensive (Table
1.2). Less than half of accounting majors have
experienced buying the books they needed for their study
and books they think they need as additional resources.
Table 1.3.B. Respondents’ experience in acquiring

e
Where do you usually buy your textbooks?
8
From bookstores 11 21.57% 2
From other students 1 1.96% 3

(preloved books)
Online shopping 38 74.51% 1

platforms (Shopee or
Lazada)
Others 1 1.96% 4
If you don't buy textbooks, how do you get access to

them?
Borrowing from friends 16 40.00% 2
Looking copies from the 21 52.50% 1

internet
Borrowing from library 2 5.00% 3
Others 1 2.50% 4
Table 1.3.B. shows where the respondents usually
buy textbooks and how they can access them if they do not
buy it. Highest in rank is buying textbooks through
online platforms and lowest through others. If they do
not buy it, the highest in rank is through looking for
copies on the internet and lowest is by other means.
Out of 51 respondents, 22% purchase books from
physical bookstores, 2% purchase preloved books or books
from other students or owners, 75% purchase books from
online shopping platforms such as Shopee and Lazada, and
2% from other sources. Out of 48 respondents who
experience not buying certain books, 40% borrow from
9
their friends, 53% look for copies from the internet, 5%
borrow from libraries, and 3% from other sources.
It is evident that most accounting majors rely on
internet use to access resources for their studies. This
implies that the proposed business is on the right path
because it will be an internet-based product. It is to be
highlighted that most respondents have experienced using
illicit methods just to access the book they were not
able to buy, they access it by looking for copies on the
internet.
Table 1.4.A. Respondents’ experience in reselling

textbooks
Particulars Yes No
Have you ever sold your textbooks? 15.69% 84.31%
Highlighted reasons (in order of frequency)

1. No, because the book will still be needed such as
for review
2. No, because the book is already outdated and nobody
will buy it
3. Yes, because fund is needed
4. Yes, because of decluttering
Table 1.4.A reveals the respondents' experience in
reselling their textbooks. The respondents were given two
choices which is yes and no. They are also given the
chance to explain behind their choice as a qualitative
factor.
Out of 51 respondents, 84% did not sell their
accounting textbooks for the reason that they need them
10
for their review and that the book is already outdated.
Those who experience selling their textbooks stated their
reason is that they need a fund, and for decluttering
purposes.
Table 1.4.B. Experience in reselling textbooks to acquire
reviewer books
Particulars Weighted mean Interpretation
It is difficult for me 3.7451 Agree

to resell my books
It is impossible to get 3.9216 Agree

the exact cost from
reselling textbooks
It is impossible to 3.6471 Agree

have funds for reviewer
books just by reselling
textbooks.
Legend:
5.00 - 4.22: Strongly Agree
4.21 - 3.42: Agree
3.41 - 2.62: Neutral
2.61 - 1.82: Disagree
1.81 - 1.00: Strongly Disagree
Table 1.4B presents the experience of respondents
in reselling their textbook to acquire a reviewer's
books. This is structured in a way that the respondents
can indicate a rate and whether they agree and disagree
on such statements.
In general, respondents agree that they have
experienced difficulty in reselling books and getting the
funds they needed. They agree that it is difficult for
11
them to resell their books. They agree that it is
impossible to recover the cost of buying textbooks by
reselling them. They also agree that it is impossible to
have funds simply by reselling the acquired textbooks.
This means that there is a risk of not realizing
the full costs of acquiring textbooks by just reselling
them, this creates a fund scarcity for accounting majors
in acquiring reviewer books for the CPA examination or
other examinations. This further strengthens the
foundation of the proposed business because its major
line of operation is renting out textbooks for accounting
majors and giving them the reviewer books upon return of
textbooks.
DEMAND ANALYSIS
In order to analyze the preferences of target
customers, part of the survey is the splice of the
proposed business. The respondents were asked to give
insights about the proposed business. This section will
contain the respondents’ perception of the rental of
books, the proposed business, and its packages.
Table 1.5. Respondents’ insight on the proposed business
Particulars Yes No
12
Have you ever used a rental book? 7.84% 94.12%
Do you think book rentals will help 98.04% 1.96%

accounting students in accessing
books?
Will you use a textbook rental 90.20% 9.80%

service if our proposed business
provides it?
Supposedly, book rentals have a net 88.24% 11.76%

fee of 600 pesos but the sale price
in a normal transaction is only 400
pesos. However, at the end of your
use and successful payment of all
fees, you will receive its
equivalent reviewer book (e.g
Intermediate Accounting 1 for
Practical Accounting 1). Do you
think this will help accounting
students?
In table 1.5 the respondents ask about their
insight on the proposed business. The respondents were
given a situation and two choices which is yes and no.
The 8% of the respondents have not yet experience
utilizing rental services for their academic books but
98% of them believe that book rentals will help the
accounting majors in their need for resources and 90%
will use such service if it were available, which in this
feasibility study is through its implementation. In the
scenario given, 88% believe that such service will help
the accounting majors in their study.
Table 1.6. Respondents’ preference on rental term
13
e
Monthly 18 35.29% 2
Annual 8 15.69% 3
Semestral 24 47.06% 1
Others 1 1.96% 4
Table 1.6 is composed of the breakdown of the
preference on rental terms of the respondents. The
respondents will choose their preferred terms which is
monthly, semestral, and annual.
Rental term refers to the duration the rentee will
rent the book. 47% of the respondents prefer a semestral
rental term. 35% prefer a monthly rental term. 16% prefer
an annual rental term and 1 % prefer other terms.
Table 1.7. Factors affecting respondents on availing the
product
Particulars Frequency % based % based

on no. of on total
responden picks
ts (51) (99)
Proximity 19 37.25% 19.19%
Availability of books 33 64.71% 33.33%
Affordability 46 90.20% 46.46%
Others 1 1.96% 1.01%
Table 1.7 shows the different factors that affect
respondents on availing the product. The number of picks
are proportioned based on the total respondents in the
14
third column and based on total picks based in the fourth
column.
Out of the many factors affecting the availability
of the product, 46% of total picks and 90% of total
respondents stated that affordability is the most
affecting factor. Followed by the availability of books
with 33% of total picks and 65% of total respondents.
Followed by proximity with 19% of total picks and 37% of
total respondents. Other sources are 1% of total picks
and 2% of total respondents.
This means that the main problem that accounting
majors consider is the price of the book which this
proposed business will try to remedy.
Price Analysis
Table 1.8. Respondents’ affordability of the product
Packages Prices Affordabi

lity
Particulars Yes No
FAR 1 1 month rental 62.7 37.

You will rent the following: - P600 5% 25%
● Intermediate Accounting 1 semester
1 by Valix rental - P650
At the end of the term, you 1 year rental
will receive the following: - P725
● Practical Accounting 1
Volume 1 by Valix

15
Volume 2 by Valix

Volume 1 by Valix, or
Volume 2 by Valix
FAR Grand 1 month rental 70.5 29.

You will rent the following: - P1,000 9% 41%
1, rental -
● Intermediate Accounting P1,150
2, and 1 year rental
● Intermediate Accounting - P1,300
3, all by Valix
At the end of the term, you
will receive the following:
Volume 1, and
Volume 2, all by Valix
AFAR Journey 1 month rental 72.5 27.

● Advanced Financial 1 semester
Accounting and Reporting rental -
by Dayag P1,250
will receive the following: - P1,400
● CPA Examination Review
for Advanced Financial
Accounting and Reporting
by Dayag,
● AFAR Quicknotes by
Bagayao, or
● CPA Examination Review
for Advanced Financial
Accounting and Reporting
16
by Punzalan
AFAR Guerrero Package 1 month - P400 74.5 25.

You will rent the following: 1 semester - 1% 49%
● Advanced Accounting 1, P500
or 1 year - P700
● Advanced Accounting 2,
all by Guerrero
At the end of the term, you
will receive the following:
by Guerrero
QE Package P200 82.3 17.

Rent any 2 books of your Early return - 5% 65%
choice for 2 months P150
Extend 1 month
- additional
of P60
Extension is
limited to 5
months only
QE Prime Package P600 70.5 29.

Extend 1 month
- additional
of P110
Extension is
limited to 5
months only
LECPA Package P1,000 74.5 25.

No extension
LECPA Package 2 P2,000 74.5 25.

choice for 9 months P1,800
No extension
LECPA Prime Package P3,500 62.7 37.

Rent any books of your choice Early return - 5% 25%
for 9 months (no limit) P2,900
No extension
17
1 Book Package 1 month - P250 84.3 15.
Rent any 1 book of the 1 semester - 1% 69%
following authors P300
● Valix 1 year - P400
● Millan
● Guerrero
● Punzalan
● Domingo
● Roque
● Soriano
Table 1.8 shows the affordability of the
respondents to a certain package offered. It was
answerable by yes or no and measured through percentage.
Highest affordability is 84.31% which is the 1 book
package and the lowest is 62.75% for the FAR 1 package
and LECPA Prime Package.
FAR 1 Package
The current average purchase price of intermediate
accounting volume 1 by Valix of the latest edition is 575
pesos (based on JBC bookshop, Conanan Bookstore, and ANE
bookshop). While the current average purchase price of
practical accounting 1 volume 1 by Valix of the latest
edition is 422 pesos. The package is offering a rental of
intermediate accounting volume 1 (textbook) and upon
returning the book, they will receive practical
accounting 1 volume 1 (reviewer book). In cases where the
rentee returns the book earlier than the rental term, he
18
may choose to pay the rent at a 50% discount or receive
the book upon total payment.
Out of 51 respondents, 63% can afford the FAR 1
package. This means that the package is affordable. This
may mean that accounting majors can afford the product.
However, since 37% of respondents cannot afford the
package it is contemplated that the price of the product
will be lowered in the long run.
FAR 2 Package
The current average price of intermediate
accounting volume 2 and practical accounting 1 volume 2
both by Valix are the same with its volume 1. The FAR 2
package offers the same term with the FAR 1 package, the
difference is that it offers volume 2 of the book.
65% can afford the FAR 2 package. This means that
the package is affordable. This may mean that accounting
majors can afford the product. However, since there are
35% of respondents who cannot afford the package it is
contemplated that the price of the product will be
lowered in the long run.
FAR 3 Package
The current average price of intermediate
accounting volume 3 by Valix is 525 pesos. The FAR 3
package offers the intermediate accounting volume 3 and
19
upon return the rentee may choose his reviewer books,
practical accounting 1 volume 1 or 2. Other terms are
just the same with other similar packages.
67% of the respondents can afford the FAR 3
However, since there are 33% of respondents who cannot
afford the package it is contemplated that the price of
the product will be lowered in the long run.
FAR Grand Package
The total price of all volumes of intermediate
accounting based on their current average purchase price
is 1,100 pesos. While the total price of all volumes of
practical accounting 1 is 844 pesos. FAR Grand package
offers the rental of all volumes and upon return, the
rentee will receive both volumes of the practical
accounting 1.
71% of the respondents can afford the FAR Grand
AFAR Journey
The current average price of advanced financial
accounting and reporting by Dayag of the latest edition
is 1,200 pesos. The current average purchase price of the
20
advanced accounting reviewer by Dayag of the latest
edition is 700 pesos, while by Bagayao is 675 pesos, and
by Punzalan is 792 pesos. The package is offering rentals
of advanced accounting by Dayag and upon return, the
rentee may choose reviewer books by Dayag, Punzalan, or
Bagayao. In cases where there is an early return, the
rentee may opt to choose a discount of 50% or total
payment and receive the reviewer books.
Out of 51 respondents, 73% can afford the AFAR
Journey package. This means that the package is
affordable. This may mean that accounting majors can
afford the product.
AFAR Guerrero Package
The current price of advanced accounting volume 1
and 2 by Guerrero of the latest edition is 540 pesos. The
practical accounting 2 by Guerrero of the latest edition
is 300 pesos. The terms of this package are the same as
the AFAR Journey package.
75% can afford the AFAR Guerrero package. This
means that the package is affordable. This may mean that
accounting majors can afford the product.
QE Package
QE package offers rental of any 2 books for 2
months. Any book means any accounting textbooks and
21
reviewer books, regardless of author and edition. This
has a fixed term of 2 months subject to extension and
early return. Rentee may choose which books he will rent.
Out of 51 respondents, 82% can afford the QE
QE Prime Package
QE Prime package offers rental of any 10 books for
2 months. The terms of this package and QE package are
the same subject to differences in their prices.
71% of respondents can afford the package. This
means that the package is affordable. This may mean that
accounting majors can afford the product.
LECPA Package
LECPA package offers rental of any 7 books for 6
months. Any book means any accounting textbooks and
has a fixed term of 6 months subject to early return only
and no extension. Rentee may choose which books he will
rent.
Out of 51 respondents, 75% can afford the LECPA
package. This means the package is affordable. This may
mean that the accounting majors can afford the product.
LECPA Package 2
22
LECPA package 2 offers rental of any 20 books for 9
months. This package offers the terms with LECPA package
subject to 9 months fixed term.
75% of respondents can afford the LECPA package 2.
This means the package is affordable. This may mean that
the accounting majors can afford the product.
LECPA Prime Package
LECPA Prime package offers rental of any 20 books
for 9 months. Any book means any accounting textbooks and
has a fixed term of 6 months subject to early return only
and no extension. Rentee may choose which books he will
rent.
Out of 51 respondents, 63% can afford the LECPA
Prime package. This means the package is affordable. This
may mean that the accounting majors can afford the
product. However, since there are 33% of respondents who
cannot afford the package it is contemplated that the
price of the product will be lowered in the long run.
1 Book Package
The current average price of books authored by
Valix is 540 pesos, by Millan is 500 pesos, by Guerrero
is 460 pesos, by Punzalan is 650 pesos, by Domingo is 725
pesos, by Roque is 565 pesos, and by Soriano is 475
23
pesos. 1 Book package offers rental of any 1 book of
authors mentioned in the table.
Out of 51 respondents, 84% can afford the 1 Book
package. This means the package is affordable. This may
mean that the accounting majors can afford the product.
Table 1.9. Recommendations of respondents on the packages
offered
Highlighted Recommendations on the Packages (in order of

frequency)
1. Lower the prices of FAR packages

2. Lower the semestral and monthly packages
3. Make more packages for books (the books are limited
only to financial accounting since it is only
partial on the survey)
4. Consider buying the preloved books of graduates
Table 1.9 shows the recommendations of the
respondents to the packages offered using frequency scale
in which the highest in number is to lower the prices of
FAR packages and the lowest is to consider buying
preloved books of graduates.
These recommendations will be considered in the
long run (which is assumed in the 3rd year of operation),
because, as of now, the packages are affordable to the
majority.
24
Table 1.10. Respondents’ recommendation of proposed
business to others
Particulars Yes No
Are you willing to recommend this 90% 10%

proposed business to others
Table 1.10 shows the willingness of the respondents
to recommend this business. Respondents’ recommendation
of this proposed business to others is a critical part of
a feasible business as this is just similar to customers
recommending a product to others. Out of 51 respondents,
90% will recommend this proposed business to others.
Table 1.11. Respondents’ recommendation on the web design
Desktop View
25
Smartphone View
Highlighted recommendation:
1. Lines must be proper
2. Aesthetic improvement
3. Add a contact details for feedbacks
Table 1.11 shows the desktop and phone view of the
web design in which the respondents recommend that lines
must be proper and add contact details for feedback.
MARKETING STRATEGIES
Marketing Mix
Discussed here are the 7Ps of marketing mix which
are the essential factors involved in marketing the
business to the public, to foster and promote the service
26
offered; product/service, price, place, people,
promotion, process, and physical evidence.
Product/Service
Figure 1.2. book-a-Book logo
Figure 1.2 shows the logo of the prospect business.
The book-a-Book is an online rental service that offers a
great deal for accounting major students and graduates of
accounting taking reviews for the certified public
accountant (CPA) licensure examination. This service is
envisioned to create a high-quality, but budget-friendly
book rental that will help both the students and other
individuals with their education, self-development, and
self-fulfillment.
The service can be easily accessed through a
website and has categories that will direct the customers
to their preferred page. There are a variety of packages
to choose from, and queries and complaints can be easily
27
noticed and assisted because there is customer service
support that customers can reach.
Price
The prices of the accounting textbooks packages
depend on the textbook acquired and the preferred author
of the customer. The prices were also determined through
the survey assessing the target customers’ views on the
affordability of the services offered.
The prices of the products are presented in Table 1
which shows the different textbooks together with the
prices and additional deals that the customers may
receive after availing the product/service.
Place
The book-a-Book is an online book rental service.
Hence, the service will be accessible in a virtual
environment like a website. The website will be
accessible on its domain –
https://ritchie04547.wixsite.com/book-a-book. The
customers can easily access and browse the different
categories on the website and are required to create an
account before proceeding to purchase the
product/service. The physical store is found along the
road of J. Hernandez Avenue Naga City. It’s a strategic
28
location since it has popular stores and universities
nearby.
Figure 1.3. J. Hernandez Avenue Naga City Google Map
Location
Figure 1.3 shows the exact location or address of
the prospect business place. This is captured through
Google Map.
People
The company cannot function independently. It takes
people to oversee operations, deal with clients, and
other tasks to ensure that a business runs smoothly. The
principal characters in book-a-Book are as follows:
Administration Team
The five partners assigned to the various roles
listed in the organizational structure make up the
administrative team.
Representative of Customer Service
Customer Service Representatives must be computer
literate and respond quickly to customer inquiries and
29
complaints. Experience with customer service is required.
Graduate of any four-year business program.
Administrator of the Website
A bachelor's degree in computer science or a
related field is required for a Web Administrator. Must
have sufficient knowledge in website design, development,
maintenance, and troubleshooting, as well as technical
and software skills.
Packaging
A packager is a warehouse worker who is in charge of
filling orders by placing items in shipping containers
and preparing them for transportation. Their
responsibilities include analyzing order invoices to
determine which things must be shipped, doing quality
control evaluations, and stacking items safely and
securely in the appropriate packaging.
Promotion
One of the most important aspects to consider is
service promotion to ensure its continued presence on
the market and in competition. BOOK-A-BOOK intends to use
several promotional activities and platforms which
include:
1. Company’s Website - BOOK-A-BOOK invests a lot of
effort to keep current information and an active
30
presence in the market, making the company website
one of the most crucial communication tools since it
is where clients learn about the company's products
or services and initiate contact. By producing and
publishing videos about the service that can be
shared on the business's social media pages, the
company will also use content marketing. One of the
partners has experience in website development and
design. His abilities will be put to use in making
videos and running the company's website.
Figure 1.4. book-a-Book Website Home
Figure 1.4 shows the homepage of the website. This
is made using wixsite, prototype of the prospect
website which will be used at the start of the
business.
2. Social Media - The use of social media is one of the
most common methods of online advertising. To reach
31
its intended audience, book-a-Book will make use of
Twitter, Instagram, and Facebook. Additionally, the
business will stay current on trends to assist them
to attract more consumers, such as employing the
proper hashtags and attention-grabbing subtitles.
The company will focus on promoting the product or
service through Facebook since it is the most used
social media platform this year with 91.11% users in
the country and the best aid to reach a wide range
of target customers.
Process
To guarantee that the service is of the same
quality for each client, the service delivery method is
essential. Books can be ordered online, but they still
require a competent distribution route to reach their
clients. To handle online orders, book-a-Book maintains
several offices. They are then separated by location and
brought from their different warehouses. After the
products have been packaged, they are delivered to their
target location, where delivery personnel take them
directly to the address supplied. To avoid any
inconvenience, the organization ensures that all
deliveries are shipped within the specified time frames.
There are also shipping choices available within 24
32
hours, seven days, and ten days. An individual can easily
create an online account and conduct the following tasks:
● Cancel, refund, or confirm purchases
● Produce shipping labels
● Create a personalized sales report and download
it.
● Use customized invoices
book-a-Book links individuals to a safe environment and
protects them with a Trusty Guarantee, which guarantees
the best services or your money back.
33
Figure 1.5 Order, Delivery and Return Process Flowchart
Figure 1.5 shows the process of delivery of the
items rented by the customers. It begins by checking out
34
the books and ends with the return of these orders to the
shop. The book-a-Book has its main courier- J&T Express.
Physical evidence
The website, logo, and office/storage location
serve as tangible proof of the services provided. This is
due to the fact that the company will operate online and
that its website will be a tool for customers to utilize
to sign up for the service and select from the available
packages. The identity and brand of the service will be
represented through the logo itself. The office will be
used as a workspace for the administrative staff and
other employees, as well as a place to store the books to
protect them from potential harm.
ANTICIPATED SALES VOLUME OF THE PRODUCT
Sales volume in the first year of operation is
based on the percentage of total respondents who respond
that they can avail the package reflected to the total
numbers of accountancy students in the Philippines.
According to Business Mirror authored by Joel Tan-Torres,
there are approximately 160,000 accountancy students in
572 universities that offer the course in the
35
Philippines. There are three universities in the
prospective place of business, therefore the 3
universities are proportioned out to 572 to get the total
potential customers. The sales volume is estimated until
three-year periods.
Shown in series of Table 1.12 are the computation
for the total sales which are based primarily on the
expected customers. It is assumed that the package is
acquired only once in a year, since a person of ordinary
mind will just pick another package if he will just
acquire a cheaper package every month. Based on the
survey result, 35% prefer a monthly rental term, 47%
prefer a semestral rental term, and 16% prefer an annual
term. The expected increase rate from year 1 to year 2 is
10%, and 20% from year 2 to year 3. The expected increase
rate is discounted by the average rate of respondents who
want to avail rental service. The discounted expected
increase rate is then multiplied by the number of
customers. The price of packages with an affordability
rate of less than 70% will be lowered and those that
exceed such a benchmark will increase during the long run
which is the third period.
36
Table 1.12.A shows the the computation of how the
sales are made and which basis are used for the
assumption.
37
Table 1.12.A Expected customers in 3 year period
NUMBER OF CUSTOMERS PROJECTION IN 3 YEARS

Proponen % of Discount Proponen Discount
Affordab Total % of 3 Discount Discount Discount
t Willingn ed t ed
ility % Accounta schools Expected Confiden ed ed no. ed no.
Packages Expected ess Expected Expected Expected
(Table ncy of 572 Customer ce % Expected of of
Increase (Table Increase Increase Increase
1.8) Students schools Customer Customer Customer
% 1.5) % % %
Fx(1+J)= Kx(1+M)=
A B C AxBxC=D E DxE=F G I GxHxI=J L HxIxL=M
K N
YEAR 1 YEAR 2 YEAR 3
FAR 1 62.75% 160,000 0.52% 527 60% 317 10% 90.20% 9.02% 346 20% 18.04% 409
FAR 2 64.71% 160,000 0.52% 544 60% 327 10% 90.20% 9.02% 357 20% 18.04% 422
FAR 3 66.67% 160,000 0.52% 560 60% 336 10% 90.20% 9.02% 367 20% 18.04% 434
FAR Grand 70.59% 160,000 0.52% 593 60% 356 10% 90.20% 9.02% 389 20% 18.04% 460
AFAR Journey 72.55% 160,000 0.52% 609 60% 366 10% 90.20% 9.02% 400 20% 18.04% 473
AFAR Guerrero 74.51% 160,000 0.52% 626 60% 376 10% 90.20% 9.02% 410 20% 18.04% 484
QE package 82.35% 160,000 0.52% 692 60% 416 10% 90.20% 9.02% 454 20% 18.04% 536
QE Prime 70.59% 160,000 0.52% 593 60% 356 10% 90.20% 9.02% 389 20% 18.04% 460
LECPA 74.51% 160,000 0.52% 626 60% 376 10% 90.20% 9.02% 410 20% 18.04% 484
LECPA 2 74.51% 160,000 0.52% 626 60% 376 10% 90.20% 9.02% 410 20% 18.04% 484
LECPA Prime 62.75% 160,000 0.52% 527 60% 317 10% 90.20% 9.02% 346 20% 18.04% 409
1 book 84.31% 160,000 0.52% 708 60% 425 10% 90.20% 9.02% 464 20% 18.04% 548
Total Accountancy Students are based on Business Mirror article authored by Joel Tan-Torres, which are based on 572
recognized schools
38
3 schools refers to AdNU, UNC, and NCF, schools that are near to the prospect business place
40% margin of error is provide to give allowance to exclusion of first year students and mistake in proportioning the
number
Table 1.12.B. Expected sales in 3 years
SALES PROJECTION IN 3 YEARS

Term
Discounted Discounted Discounted New Unit
Preference Unit Price Sales Per Sales Per Sales Per
Packages Expected Expected Expected Price of
% (Table of Package Package Package Package
Customers Customers Customers Package
1.6)
FAR 1 317 346 409

Monthly 36% 114 600 68,472 125 74,736 147 580 85,399
Semestral 48% 152 650 98,904 166 107,952 196 635 124,663
Annual 16% 51 725 36,772 55 40,136 65 735 48,098
FAR 2 327 357 422
Monthly 36% 118 600 70,632 129 77,112 152 580 88,114
Semestral 48% 157 650 102,024 171 111,384 203 635 128,626
Annual 16% 52 725 37,932 57 41,412 68 735 49,627
FAR 3 336 367 434
Monthly 36% 121 600 72,576 132 79,272 156 580 90,619
Semestral 48% 161 650 104,832 176 114,504 208 635 132,283
Annual 16% 54 725 38,976 59 42,572 69 735 51,038
FAR Grand 356 389 460
Monthly 36% 128 1000 128,160 140 140,040 166 1020 168,912
39
Semestral 48% 171 1150 196,512 187 214,728 221 1180 260,544
Annual 16% 57 1300 74,048 62 80,912 74 1365 100,464
AFAR Journey 366 400 473
Monthly 36% 132 800 105,408 144 115,200 170 820 139,630
Semestral 48% 176 1250 219,600 192 240,000 227 1280 290,611
Annual 16% 59 1400 81,984 64 89,600 76 1465 110,871
AFAR Guerrero 376 410 484
Monthly 36% 135 400 54,144 148 59,040 174 420 73,181
Semestral 48% 180 500 90,240 197 98,400 232 530 123,130
Annual 16% 60 700 42,112 66 45,920 77 765 59,242
QE package 416 454 536

Early
36% 150 150 22,464 163 24,516 193 170 32,803
returners
6 months 48% 200 440 87,859 218 95,885 257 470 120,922
7 months 16% 67 500 33,280 73 36,320 86 565 48,454
QE Prime 356 389 460
Early
36% 128 500 64,080 140 70,020 166 520 86,112
returners
Remaining 64% 228 600 136,704 249 149,376 294 630 185,472
LECPA 376 410 484
Early
36% 135 850 115,056 148 125,460 174 880 153,331
Returnes
40
Remaining 64% 241 1000 240,640 262 262,400 310 1030 319,053
LECPA 2 376 410 484
Early
84% 316 1800 568,512 344 619,920 407 1825 741,972
returners
Remaining 16% 60 2000 120,320 66 131,200 77 2060 159,526
LECPA Prime 317 346 409
Early
84% 266 2900 772,212 291 842,856 344 2900 996,324
returners
Remaining 16% 51 3500 177,520 55 193,760 65 3400 222,496
1 book 425 464 548
Monthly 36% 153 250 38,250 167 41,760 197 270 53,266
Semestral 48% 204 300 61,200 223 66,816 263 330 86,803
Annual 16% 68 400 27,200 74 29,696 88 465 40,771
TOTAL TOTAL TOTAL
4,088,625 4,462,905 5,372,358
SALES SALES SALES
41
CHAPTER II
MANAGEMENT STUDY
This chapter will focus on the discussions on how
the business will be managed by defining the vision,
mission, objectives, and goals of the company, conducting
SWOT and TOWS analysis, presenting the organizational
chart of the business, manpower requirements, procedures
on pre-operating stage, as well as the schedule of
activities.
BUSINESS PROFILE
Figure 2.1. Business logo
Figure 2.1 shows the permanent logo of the prospect
business. The book-a-Book as the business name is a name
that has a purpose. The first name “book” means to
42
reserve or rent. It is created to have the sole purpose
of helping the student and the environment. Since one of
the aims of the business is to reduce the large amount of
cutting trees and the producing carbon footprint. The
second name “Book” is created because the product is a
physical accounting book that we deliver to the customer.
Also, it is the business way to show accounting students
and future CPAs to reach their dreams by offering an
affordable price of the book.
The business logo represents the main product which
is a book, the color brown in the business name
symbolizes strength, reliability, dependability,
security, and safety, whereas book-a-Book commits itself
to providing high-quality service, the plant represents
growth and knowledge, and the color white as the
background color symbolizes simplicity and brilliance.
The book-a-Book is a General partnership that is
composed of five (5) members. Each partner was named and
appointed in the Articles of Partnership to carry out
provisions assigned to them is discussed in the section
on Duties and Responsibilities. The partnership was
formed and organized in compliance with all requirements
for its lawful operation.
43
The proponents chose General Partnership as the
type of business because all of its members will be able
to maintain full control of the business.
BUSINESS STRUCTURE
The business structure is a general partnership
with five general partners who share profits and losses
equally. In which all partners have an equal say on the
business in case of decision-making, managing day-to-day
operations, and control.
VISION STATEMENT
The book-a-Book envisions itself as the leading
provider of high-quality, budget-friendly book rentals
that help people learn and grow. Also, it is a welcoming,
open, and accessible community gathering place where
everyone can reflect, learn, and create.
44
MISSION STATEMENT
The book-a-Book is dedicated to improving the
quality of life of every individual by offering
high-quality, budget-friendly book rentals for education,
self-development, and self-fulfillment. To facilitate
lifelong learning and discovery, as well as to connect
people with ideas and information, stimulate imagination,
and a love of reading.
GOALS
The goals of the business are the following
statements:
1. To continuously improve its services.
2. Increase sales and profit while maintaining
the value of customers.
3. Establish long-term and sustainable plans for
the business.
4. To establish a good reputation and provide a
quality service towards customers by choosing
quality books.
45
5. Grow market share and launch new services to
grow into a highly profitable and successful
business owner.
6. To build enduring relationships with our
customers and fellow entrepreneurs.
7. To bring satisfaction to the customers’ demand
and offer promos through packages to gain loyal
customers.
OBJECTIVES
The objectives of the business are the following
statements:
1. To develop Bicolanos' innovative
entrepreneurial skills and to continuously
develop services to make them more competitive
on a local, national, and international scale.
2. Provide the service on a national scale and
make it accessible to programs other than
accounting.
3. Put the interests of the stakeholders'
wellbeing first, and pay attention to their
46
feedback and suggestions to enhance the
services and ensure satisfaction.
4. Hire employees that have excellent competencies
required in the position.
5. Increase sales by 10% annually.
SWOT Analysis
The SWOT Analysis conducted for the service

Book-a-Book
Table 2.1. SWOT analysis of the business
STRENGTHS WEAKNESSES
1. Save human efforts 1. No physical contact
2. Convenient or save with books

time
3. Variety of buying or 2. Only caters to
renting options at a specific customers
single place 3. Limited customer reach
4. Discount on buying the 4. Maintenance of website
product and services
5. Budget friendly 5. Technical problem
47
OPPORTUNITIES THREATS
1. Employment. 1. Huge competition in

2. Increase the number of the same industry.
2. Imitation of the
online buyers service
3. Piracy.
3. Customers seeking
4. Increasing the number
discount
of E-book readers
5. Changing syllabus of
university
6. online book seller
7. Government regulations
Table 2.1 shows the strengths, weaknesses,
opportunities, and threats of the prospect business.
TOWS Analysis
Table 2.2. TOWS analysis of the business
SO Strategies WO Strategies
1. Long-term strategies 1. Market Penetration

2. Technology strategy Strategy
2. Service Development
Strategy
ST Strategies WT Strategies
1. Employment Strategy 1. Differentiation

2. Market Development Strategy
2. Patent strategy
48
Presented in the table 2.2 below are the proposed
strategies that will be used for the improvement of the
Book-a-Book service.
Strengths-Opportunities Strategies
1. Long- term strategies - Having long- term strategies
will help the company to effectively organize and
plan the budget and come up with innovative ideas
that will benefit the business. In the case of
formulating predictions on profitability and
visualizing possible threats.
2. Technology strategy - By the use of technology, a
large target market and potential buyers to avail of
the company’s service will be able to reach. It also
helps to promote the services offered through
various online platforms.
Strengths-Threats Strategies
1. Employment Strategy - By employing competent and
qualified employees will serve as an advantage to
increase the business performance and improve
services by coming up with more innovative ideas.
2. Market Development Strategy - To introduce an
alternative to the market by reaching a wide- range
49
of customers will serve as a competitive advantage
towards competitors.
Weaknesses-Opportunities Strategies
1. Market Penetration Strategy - By having packages
offered at a discounted price compared to
competitors the market share will increase. The use
of online platforms for promoting the services
caused the expenses to be reduced then the price of
services will also decrease.
2. Service Development Strategy - A more developed
service will gain loyal customers and build a good
reputation or image to the public.
Weaknesses-Threats Strategies
1. Differentiation Strategy - By providing exceptional
service and promotional offers that distinguishes
itself to the other industry players will be an edge
towards competitors.
2. Patent strategy - By securing a patent the company
will be able to protect itself from possible
imitation of the services offered by competing
entities.
50
Organizational Chart
Figure 2.2. Organizational structure of book-a-Book
Figure 2.2 shows the tentative organizational chart
assumed by the business. The organizational chart above
highlights the roles and responsibilities of the members
of the organization. It is composed of a General Manager,
Human Resource Manager, Marketing Manager, Procurement
Manager, and Finance Manager.
Plantilla of the Organization
General Manager is an all-around manager tasked to
respond to each department as an assistant or advisory
function of that department. The general manager will
also act as a day-to-day manager who manages the
operation and affairs of the business daily. The general
manager responds immediately to the operation of the
business such as the required signature of supplier’s
invoice, customer orders, receipts, etc. He will also act
51
as an internal auditor because he actually engages in
each area of operation of the business. He will submit to
other partners the operation audit at least annually
covering one year period. As a general manager, he will
represent the partnership in its affairs, such as in the
case of external procurement, engaging with external
operational audit, engaging with audit firms for its
financial audit, etc.
Human Resource Manager is charged with the
management of the workforce of the business. She manages
the record keeping of labor hours of employees, checks
the need for additional workforce, assesses the reports
about employees violation and decides for termination,
coordinates with the treasurer on salary payments, sets
an interview for hiring of new staff employees, etc.
Training and seminar workshops for the benefits of staff
employees will be procured by human resource managers.
However, engaging third parties for such a cause will be
decided by all partners. It is to be noted that the
qualifications of staff employees are set by the
concurment of partners with recommendation from the
partner in charge with that line of department. Employees
who are promoted/hired for second-line managerial level
will be decided by the concurment of the partners with
52
recommendation from the partner in charge with that line
of department. Termination of staff employees can be
decided solely by the human resource manager. Termination
or demotion of second-line managerial level will be
decided by all partners.
Marketing Manager is charged with creating strategic
marketing that will promote the business on a large and
long-term scale. He is the one who will procure marketing
research to better make an advertisement or other
promotion resulting from such research. His aim is to
maximize the sales revenue of the business. He will
manage the website, app, or pages that the business may
have. Designs of platforms will be decided by the
marketing manager provided that it will be presented to
all partners. Engaging with third parties for market
related activities will be decided by all partners. Under
his department, the following holds a vital role:
a. Two website managers - a non-managerial role
who will manage the website on a day-to-day
basis, entertaining any purchase of service and
answering queries. The hiring or promotion of a
website manager is decided by all partners upon
recommendation of the marketing manager.
53
b. Three market researchers - a non-managerial
role who will conduct market research at least
annually or whenever there is indication for
the need of it, implementation of marketing
program, and assess its effectiveness.
Procurement Manager is responsible for ensuring that
their business purchases the goods and services that will
best help them achieve their goals. Her primary role is
to maintain a supply chain with book publishers, having
good relations with them, and assessing the cost
information prepared for reporting purposes and
decisions. Acquisition of large fixed assets such as
machineries and building is planned out by the
procurement manager. Any external activities that bind
third parties as a result of partners’ decisions are
planned out by the procurement manager. Under her
department, the following holds vital role:
a. Purchase Officer - a non-managerial role who is
in charge of purchasing of items except large
amounts requested by other departments. The
hiring or promotion for the position of
purchasing officer requires the decision of all
partners upon recommendation of procurement
manager.
54
b. Cost Manager - a second-line managerial role
under procurement department who are tasked to
record all accumulated costs and prepare cost
information that will be used by the partners
for their decision.
Finance Manager is in charge of the financial area
of the business. Her main role is to manage the financing
component of the business such as incurring large amounts
of debts and other necessary financing. With this, she is
in charge of financial accounting and reporting of the
business for the benefit of creditors and potential
creditors. She is also tasked with preparation of the
annual budget, assess the fund needed for acquisition of
large amounts of assets, and assist the procurement
manager in planning the activities that bind third
parties as a result of partners’ decisions. Under her
department, the following holds vital role:
a. Bookkeeper - a non-managerial role who is in
charge of recording every transaction of the
company. The hiring of the bookkeeper will be
decided by all partners
b. Treasurer - a managerial role who is in charge
of managing the funds of the business and
clearing out checks. She serves as an adviser
55
to the partners in financing strategy. She also
coordinates with creditors
Manpower Requirements
Table 2.3 - Positions, qualifications, duties and
responsibilities
Position Qualification Duties and

Responsibilities
Web Managers ● Must have ● Design,
sufficient program, and
knowledge in monitor the
designing, website.
developing, ● Track, compile,
maintaining, and and analyze web
troubleshooting site usage
websites. data.
● Must have both ● Create backup
technical and and recovery
software skills. plans regularly
● Requires a to resolve
bachelor’s degree future website
in computer problems.
● Test issues
such as website
56
science-related performance and
field. security on a
regular basis.
● Respond
promptly to
customer
queries and
complaints.
● Acquiring
Purchase ● Must be computer
Officer resources,
literate.
purchasing
● Requires
products and
experience with
services, and
customer support.
bargaining for
● Graduate of any
the best or
four-year
most affordable
business-related
deals and
course.
arrangements.
● Monitors the
inventory and
reports any
defective or
57
inaccurate
items promptly.
Bookkeeper ● Bachelor’s degree ● Conducts
in Accounting or paycheck tasks
any Finance accurately and
related field. promptly, and
● Proficient skills submits tax
in Microsoft payments.
Excels. ● Prepares
● With a high level financial
of accuracy and reports by
attention to gathering,
details. analyzing, and
summarizing
data.
The table 2.3 shows the positions, qualifications,
duties and responsibilities, and compensation of the
people who will be hired by the business.
58
Table 2.4.A. Projected administrative salaries for year 3
ADMINISTRATIVE PERSONNEL SALARIES (starting Year 3)

Salary per Hours Worked Salary per 30-day month 31-day month February Annual
Employees 13 Month Pay Free Month
Hour per Day Day less 12 days less 12 days less 12 days Salary
Dx4+Ex6+F+G=
A B AxB=C Cx18=D Cx19=E Cx16=F E=G H
I
Purchase
47.25 8 378.00 6,804.00 7,182.00 6,048.00 7,182.00 Apr, May 83,538.00
Officer
Bookkeeper 54.75 8 438.00 7,884.00 8,322.00 7,008.00 8,322.00 Apr, May 96,798.00
Web Manager Dec, Apr,
52.25 8 418.00 7,524.00 7,942.00 6,688.00 7,942.00 84,436.00
#1 May
Web Manager Dec, Apr,
52.25 8 418.00 7,524.00 7,942.00 6,688.00 7,942.00 84,436.00
#2 May
TOTAL 349,208.00
Table 2.4.B. Projected administrative salaries for year 1 and 2
ADMINISTRATIVE PERSONNEL SALARIES (Year 1 & 2)

Hours
Salary per Salary per 30-day month 31-day month February Free Annual
Employees Worked per 13 Month Pay
Hour Day less 12 days less 12 days less 12 days Month Salary
Day
Dx4+Ex6+F+G=
I
Purchase
44.75 8 358.00 6,444.00 6,802.00 5,728.00 6,802.00 Apr, May 79,118.00
Officer
Web Manager Dec,
46.25 8 370.00 6,660.00 7,030.00 5,920.00 7,030.00 74,740.00
#1 Apr, May
59
TOTAL 239,606.00
Table 2.5.A. Employees and employer contribution for year 1
YEAR 1 EMPLOYEE BENEFITS CONTRIBUTION

Employees Contribution Employer Contribution
Total Employ
PhilHe
With Total Deduct Employ er
alth HDMF PhilHe
Estimated hold SSS Monthl ion SSS HDMF EC er Contri Total
Employee Contri Contri Net alth
Year 1 Pay Monthly ing Contri y for Contri Contri Contri Monthl bution Contri
s bution bution Pay Contri
Pay Tax bution Deduct the bution bution bution y for bution
(2.25% (2%) bution
0% ions Year Contri the
)
bution Year
Purchase 158.2 656.2 7,875 71,24 640.0 178.0 158.2 986.2 11,83 19,71
79,118.00 7,911.80 0.00 320.00 178.02 10.00
Officer 4 5 .02 2.98 0 2 4 5 5.02 0.04
Bookkeep 171.5 704.4 8,453 77,29 680.0 192.9 171.5 1,054 12,65 21,10
85,748.00 8,574.80 0.00 340.00 192.93 10.00
er 0 3 .15 4.85 0 3 0 .43 3.15 6.30
Web
166.0 692.9 8,315 66,42 680.0 186.8 166.0 1,042 12,51 20,83
Manager 74,740.00 8,304.44 0.00 340.00 186.85 10.00
9 4 .27 4.73 0 5 9 .94 5.27 0.53
#1
Packager 155,708.0 12,975.6 259.5 1,071 12,85 142,8 1,040 291.9 259.5 1,601 19,21 32,07
0.00 520.00 291.95 10.00
#1 0 7 1 .47 7.59 50.41 .00 5 1 .47 7.59 5.18
Packager 155,708.0 12,975.6 259.5 1,071 12,85 142,8 1,040 291.9 259.5 1,601 19,21 32,07
0.00 520.00 291.95 10.00
#2 0 7 1 .47 7.59 50.41 .00 5 1 .47 7.59 5.18
Packager 155,708.0 12,975.6 259.5 1,071 12,85 142,8 1,040 291.9 259.5 1,601 19,21 32,07
0.00 520.00 291.95 10.00
#3 0 7 1 .47 7.59 50.41 .00 5 1 .47 7.59 5.18
60
Table 2.5.B. Employees and employer contribution for year 2

Total Employ
PhilHe Total Deduct Employ er
Estimate Withh HDMF PhilHe HDMF
SSS alth Monthl ion SSS EC er Contri Total
d oldin Contri Net alth Constr
Employees Year 2 Pay Contri Contri y for Contri Contri Monthl bution Contri
Monthly g Tax bution Pay Contri ibutio
bution bution Deduct the bution bution y for bution
Pay 0% (2%) bution n
(2.5%) ions Year Contri the
bution Year
Purchase 320.0 197.8 158.2 676.0 8,112 71,00 640.0 197.8 158.2 1,006 12,07 20,18
79,118.00 7,911.80 0.00 10.00
Officer 0 0 4 3 .37 5.63 0 0 4 .03 2.37 4.74
Bookkeepe 340.0 214.3 171.5 725.8 8,710 77,03 680.0 214.3 171.5 1,075 12,91 21,62
85,748.00 8,574.80 0.00 10.00
r 0 7 0 7 .39 7.61 0 7 0 .87 0.39 0.78
Web
340.0 207.6 166.0 713.7 8,564 66,17 680.0 207.6 166.0 1,063 12,76 21,32
Manager 74,740.00 8,304.44 0.00 10.00
0 1 9 0 .40 5.60 0 1 9 .70 4.40 8.80
#1
Packager 168,974.6 14,081.2 520.0 352.0 281.6 1,153 13,84 155,1 1,040 352.0 281.6 1,683 20,20 34,04
0.00 10.00
#1 7 2 0 3 2 .66 3.86 30.81 .00 3 2 .66 3.86 7.72
Packager 168,974.6 14,081.2 520.0 352.0 281.6 1,153 13,84 155,1 1,040 352.0 281.6 1,683 20,20 34,04
0.00 10.00
#2 7 2 0 3 2 .66 3.86 30.81 .00 3 2 .66 3.86 7.72
Packager 168,974.6 14,081.2 520.0 352.0 281.6 1,153 13,84 155,1 1,040 352.0 281.6 1,683 20,20 34,04
0.00 10.00
#3 7 2 0 3 2 .66 3.86 30.81 .00 3 2 .66 3.86 7.72
Table 2.5.C. Employees and employer contribution for year 3

61
Total Employ
PhilHe Total Deduct Employ er
Estimate Withh HDMF PhilHe HDMF
SSS alth Monthl ion SSS EC er Contri Total
Year 3 d oldin Contri Net alth Constr
Employees Contrib Contri y for Contri Contri Monthl bution Contri
Pay Monthly g Tax bution Pay Contri ibutio
ution bution Deduct the bution bution y for bution
Pay 0% (2%) bution n
(2.5%) ions Year Contri the
bution Year
Purchase 83,538. 8,353.8 208.8 167.0 715.9 8,591 74,94 680.0 208.8 167.0 1,065 12,79 21,38
0.00 340.00 10.00
Officer 00 0 5 8 2 .05 6.95 0 5 8 .92 1.05 2.10
96,798. 9,679.8 242.0 193.6 815.5 9,787 87,01 760.0 242.0 193.6 1,205 14,46 24,25
Bookkeeper 0.00 380.00 10.00
00 0 0 0 9 .09 0.91 0 0 0 .59 7.09 4.18
Web 84,436. 9,381.7 234.5 187.6 802.1 9,626 74,80 760.0 234.5 187.6 1,192 14,30 23,93
0.00 380.00 10.00
Manager #1 00 8 4 4 8 .16 9.84 0 4 4 .18 6.16 2.32
Web 84,436. 9,381.7 234.5 187.6 802.1 9,626 74,80 760.0 234.5 187.6 1,192 14,30 23,93
0.00 380.00 10.00
Manager #2 00 8 4 4 8 .16 9.84 0 4 4 .18 6.16 2.32
Packager 235,028 19,585. 489.6 391.7 1,661 19,93 215,0 1,560 489.6 391.7 2,451 29,41 49,35
0.00 780.00 10.00
#1 .00 67 4 1 .36 6.26 91.74 .00 4 1 .36 6.26 2.52
Packager 235,028 19,585. 489.6 391.7 1,661 19,93 215,0 1,560 489.6 391.7 2,451 29,41 49,35
0.00 780.00 10.00
#2 .00 67 4 1 .36 6.26 91.74 .00 4 1 .36 6.26 2.52
Packager 235,028 19,585. 489.6 391.7 1,661 19,93 215,0 1,560 489.6 391.7 2,451 29,41 49,35
0.00 780.00 10.00
#3 .00 67 4 1 .36 6.26 91.74 .00 4 1 .36 6.26 2.52
Table 2.6 Summary of employee benefit accounts
EMPLOYEE BENEFITS ACCOUNT SUMMARY AND CASH FLOW INFORMATION

Aggregate Cash Aggregat Deductio Cash Aggregat Deductio Cash
Accounts Deductions Balance Balance Balance
Amount Payment e Amount ns Payment e Amount ns Payment
Year 1 YEAR 2 YEAR 3
62
Salaries 643,513.8 746,530 66,918. 679,611 1,054,2 97,439. 956,852
706,730.00 63,216.20 0.00 0.00 0.00
Payable 0 .00 74 .26 92.00 24 .76
92,160. 92,160. 7,680.0 137,520 133,740 11,460.
SSS 92,160.00 0.00 84,480.00 7,680.00 0.00 0.00
00 00 0 .00 .00 00
40,220. 39,736. 3,351.7 57,332. 55,906. 4,777.7
PhilHealth 34,407.74 0.00 31,540.43 2,867.31 0.00 0.00
83 40 4 49 52 1
32,176. 32,176. 45,865. 45,865.
HDMF 30,584.66 0.00 30,584.66 0.00 0.00 0.00 0.00 0.00
66 66 99 99
EC 720.00 0.00 660.00 60.00 720.00 0.00 720.00 60.00 840.00 0.00 830.00 70.00
98,358. 144,119
Benefits 94,656.20
74 .24
790,778.8 844,404 1,193,1
TOTAL TOTAL TOTAL
9 .32 95.27
63
Table 2.4 to 2.6 shows the computation for the
salary and benefits that the aforesaid employees will get
based on the minimum wage release by the Department of
Labor and Employment in Region V.
Figure 2.3. Hiring Process and Recruitment of the
Employees
Figure 2.3 shows the hiring process of the prospect
business, this aims particularly to the hiring of
employees. The book-a-Book service requires competent and
knowledgeable employees that will help to maintain the
quality of the services that will be provided to the
customers. Highly competent and professional staff are
factors that ensure the service’ development and success,
and both skilled and incompetent workers are widely
available on the market.
64
The hiring process will be done online for the
availability and convenience of the applicants. The
hiring process will start after receiving the application
forms such as a resume, cover letter, and recommendation
letter. The resume must entail the applicant’s
educational background, skills, and experience if they
have any. The documents submitted by the applicants will
be reviewed, and the selection of the applicants that
will proceed to the next step of the hiring process must
reach the qualifications required in the desired
position. The qualified applicants will be contacted
through text message and email to proceed with the
examination for the customer service job, while the
online skill test will be conducted for the web
administrator job position. The examinees for customer
service jobs require an 85% passing rate in order to
proceed to the interview. Moreover, the takers of the
online skill test for web administrator jobs require at
least a 75% passing rate. The applicants that will pass
the tests will eventually proceed to the interview. The
interview will be done through Zoom Meeting. The customer
service applicants will be evaluated through their
communication skills and the interviewer will pay close
attention to the applicant’s way of answering questions
65
asked and their manner of talking. Furthermore, the
applicants for web administrator will be assessed
according to their level of expertise and knowledge in
maintaining the website, databases, etc.
The applicants who passed the interview will be
required to accomplish and submit the required documents
for employment benefits such as SSS and PhilHealth. The
applicants who will successfully submit the requirements
needed will proceed to the onboarding process, in which
they are introduced to the business and the service being
offered.
The conduct of the hiring and selection process
impacts the long-term success of the business and
continuous growth of the business performance.
PRE-OPERATING PROCEDURES
In order for the book-a-Book to legally operate, it
has to register its name, and acquire certifications and
permits from the following agencies:
Registration with the Department of Trade and Industry
66
The registration procedure, conditions, and legal
costs for the Department of Trade and Industry are
outlined below. This allows the company to use a name
that is only for the purpose of running a genuine
business, ensuring that no other organization or entity
uses the same name. The goal of this registration is to
ensure that the business may continue to function
legally.
The following are the requirements:
● The applicant must be at least 18 years old.
● 1 government-issued ID (SSS, GSIS, Passport,
Voter's ID, or any other government-issued ID)
● Form of application
● Documentary stamp worth 15 pesos
● A set of three names
The following are registration fees:

1. Barangay - Php 200.00
2. City/Municipality - Php 500
3. Regional - Php 1,000
4. National - Php 2,000
The following are the procedures:
67
● Bring the necessary DTI requirements and fill
up the application form. (Application forms
will be provided by DTI.)
● Submit your requirements and pay the applicable
fees.
● Wait only for a few minutes for the DTI permit
/ DTI business certificate.
Registration with the Securities and Exchange Commission
(SEC).
● Name Verification Slip. This can be obtained on
SEC’s website -- sec.gov.ph.
● Articles of Partnership
● Endorsement of Clearance (from other government
agencies)
The following are the process:
1. Verify or reserve the proposed name.
2. Present Articles of Partnership.
3. Pay the filing fee.
4. Present an Official Receipt to get the
Certificate of Recording of the Articles of
Partnership.
68
Registration with the Bureau of Internal Revenue
Registration with BIR is required for all
businesses in order for taxpayers to pay their tax dues
and enjoy the benefits of a legitimate business. The
requirements are as follows:
● 2 original copies of accomplished BIR Form
1903;
● 1 photocopy of the Certificate of Recording;
and
● 1 photocopy of Articles of Partnership
1. Accomplish BIR Form 1903 and prepare all other
requirements mentioned above.
2. Submit the filled-out forms together with the
requirements to the Revenue District Office
(RDO) where the business is located.
3. Pay the corresponding registration fee. The
registration fee is Php 500 plus Php 30 for the
documentary stamp tax.
69
4. Claim the Certificate of Registration on the
scheduled date or within the day if the
officers are available.
Registration with the Social Security System as Employer
● Approved Articles of Partnership from
Incorporation from the Securities and Exchange
Commission (SEC)
● Accreditation from the Department of Labor and
Employment (DOLE)
● Valid ID
The business will use online processing of
application. Once you have registered with the SSS and an
Employer ID number is issued to you, it will be easier to
create your company’s online account. You may no longer
need to submit any other document, but you need to
provide the following:
10-digit Employer SSS Number - Make sure this is
entered correctly without spaces or dash
Address 1 - Refers to the house number and the
street name or number
70
Address 2 - Refers to the barangay or subdivision
and the municipality
City and Postal Code
Contact number - You need to provide the contact
number used when you registered with SSS.
Email address - Preferably the business email
address so that all transaction receipts and
notifications from SSS will be centralized in one email.
The SSS Online Employer Registration Steps:
Step 1: Accomplish the online employer
registration form
Step 2: Verify your SSS online employer account
Step 3: Wait for a confirmation email from SSS
Registration with the PhilHealth as an Employer.
● 2 copies of accomplished Employer Data Record
(ER1); and
● 2 copies of accomplished Report of Employee
Members (ER2)
71
1. Visit any of the local Health Insurance Offices
or PhilHealth Express outlets nationwide.
2. Fill out (2) copies of the PhilHealth Member
Registration Form(PMRF).
3. Submit PMRF to the LHIO or PhilHealth Express.
4. Await Member Data Record (MDR and PhilHealth ID
Card).
5. Pay the necessary premium contributions using
your PhilHealth ID number.
Register with the Department of Labor and Employment

(DOLE)
● Application form
● SEC Certificate (for Corporations) or DTI
Registration.
● Business Permit from the City where the main
office is located.
● Tax Identification Number (TIN) of the company
● Fire Inspection of the establishment
The following are the process
1. Accomplish three copies of DOLE-BWC-IP-3 form
72
2. Include the following prerequisites together
with the form
● Layout plan of the place of work floor by
floor
● On a scale of 1:100 meters white or
blueprint showing all the physical features
of the workplace containing the storage,
exits, aisles, machinery, clinic, emergency
devices, and location.
● SEC Certificate or DTI Registration
Barangay Clearance
● Community Tax Certification
● Application form
● Application Fee
1. Secure all the needed requirements
2. Go to Barangay Hall
3. Present the community tax certificate
4. Pay the application and processing fee
5. Wait for the barangay clearance to be release
73
CHAPTER III
TECHNICAL STUDY
This chapter presents the service specifications,
service processes, technical specifications, sources of
revenue, equipment specifications, service quality
control strategies, and business location and floor plan
of the book-a-Book.
Figure 3.1. book-a- Book
Figure 3.1 shows the book-a- Book website
homepage.The introductory page of a website typically
serves as a table of contents for the site. A web page is
set as the default or start-up page on a browser.
74
SERVICE SPECIFICATION
The book-a-Book is an online book rental service in
which the target customers are students with accounting
majors and accounting graduates who plan to take the
licensure examination for Certified Public Accountants
(CPA). The website offers a variety of packages that
include the rental of textbooks to lessen the
difficulties of the proposed customers in accessing the
textbooks needed for their study.
The accounting textbook packages to choose from are
Intermediate Accounting, Practical Accounting, Advanced
Financial Accounting and Reporting, AFAR Quicknotes, CPA
Examination Reviewers, and other accounting-related
textbooks.
The book-a-Book is an online Accounting book for
rental accessible through a website. This covers the
major subjects covered during Certified Public Accountant
Licensure Examination (CPALE): Management Advisory
Services, Advanced Financial Accounting and Reporting,
Financial Accounting and
Reporting, Regulatory Framework for Business
Transactions, and Auditing.
75
Main Shop
The main shop includes a list of the available
books that customers can rent at a fixed price. This
includes packages that are in line with the courses for
Accountancy students.
The figure below shows the face of the shop where
customers choose the right package for them. In this
area, they will see the inclusions of the packages and
their corresponding prices.
Figure 3.2. Shop Packages in our Website
76
Figure 3.3 Shop item in our Package
Figure 3.2 to 3.3 shows what will the customers
will see while buying the package or the product of the
business.
SERVICE PROCESS AND FLOWCHART
To deliver the service to customers the service
process begins with the establishment of the book-a-Book
website through a web developer and design expert. It is
where the customers can access, register, and check
service offerings and all the information about the
company.
77
Step 1. Access the web address at Rent | book A
Book | Philippines (bookabook022.wixsite.com/book-a-book)
Figure 3.4. Website Homepage
Step 2. Register/Sign-in to create an account.
Figure 3.5. Registration form
78
Figure 3.6. Confirmation for Submitting an account
Step 3. After creating an account, choose the
desired package of books to rent, then add to the cart.
Figure 3.7.A Books and Packages
79
Figure 3.7.B. Books and Packages
Figure 3.7.C. Books and Packages
Figure 3.7.D. Books and Packages
80
Figure 3.7.E. Books and Packages
Step 4. After adding it to the cart, the customer
may checkout the item and pay via online transaction.
Figure 3.8 Online Payment
Step 5. Books will be delivered to the customer’s
location
81
Figure 3.9. Shipping and Delivery
Step 6: Returning rented books
Figure 3.10. Returns
Figure 3.4 to Figure 3.10 shows what will the
customers expect to encounter in the website while
processing their transactions. They will not actually see
this in wixsite since this is only a prototype, the
business will create and buy its domain once the business
is about to start.
82
TECHNICAL SPECIFICATION OF THE BUSINESS
The customers will be directed to the website's
home page after accessing the BOOK-A-BOOK link. There are
different accounting textbooks and packages to avail on
the website. The purchase process will start when the
customer has already added a product to the cart. They
must create an account and provide their personal
information to proceed with the payment process. The
customers may pay for the service through Paypal and the
customer will receive a message through email indicating
the confirmation after successfully creating an account,
and once payment has been made.
Revenue Source
The revenue will be generated from the purchase of
the textbook rental by the customers. It is to be noted
that all revenues signify a cash sales transactions.
Pricing
The prices of the different features of the online
service is aligned with the target market’s preferences
and ability to pay, the costs to be incurred, as well as
other considerations.
Table 3.1. Price per package
Package Price
83
FAR 1 1 month rental -
You will rent the following: P600
● Intermediate Accounting 1 by 1 semester rental -
Valix P650
At the end of the term, you will 1 year rental - P725
receive the following:
● Practical Accounting 1 Volume 1
by Valix

Valix P650
by Valix

Valix P650
by Valix, and
by Valix
FAR Grand 1 month rental -

You will rent the following: P1,000
● Intermediate Accounting 1, 1 semester rental -
● Intermediate Accounting 2, and P1,150
● Intermediate Accounting 3, all by 1 year rental -
Valix P1,300
At the end of the term, you will
● Practical Accounting 1 Volume 1,
and
● Practical Accounting 1 Volume 2,
all by Valix
AFAR Journey 1 month rental -

● Advanced Financial Accounting and 1 semester rental -
Reporting by Dayag P1,250
At the end of the term, you will 1 year rental -
receive the following: P1,400
● CPA Examination Review for
Advanced Financial Accounting and
Reporting by Dayag,
84
● AFAR Quicknotes by Binaluyo, or
● CPA Examination Review for
Advanced Financial Accounting and
Reporting by Punzalan
AFAR Guerrero Package 1 month - P400

You will rent the following: 1 semester - P500
● Advanced Accounting 1, or 1 year - P700
● Advanced Accounting 2, all by
Guerrero
At the end of the term, you will
● Practical Accounting 2 by
Guerrero
QE Package P200
Rent any 2 books of your choice for 2 Early return - P150
months Extend 1 month -
additional of P60
Extension is limited
to 5 months only
QE Prime Package P600

months Extend 1 month -
additional of P110
Extension is limited
to 5 months only
LECPA Package P1,000

months No extension
LECPA Package 2 P2,000

Rent any 20 books of your choice for 9 Early return -
months P1,800
No extension
LECPA Prime Package P3,500

Rent any books of your choice for 9 Early return -
months (no limit) P2,900
No extension
1 Book Package 1 month - P250

Rent any 1 book of the following 1 semester - P300
authors 1 year - P400
● Valix
● Millan
● Guerrero
● Punzalan
● Domingo
85
● Roque
● Soriano
Table 3.1 shows the prices of the packages. This is
based on the survey. In the long run or the year 3, the
prices with high affordability rate will increase while
the prices with low affordability rate will decrease.
Payment for Services
The customers may process their payment through an
e-payment application, Paypal, G-cash, e-bank and they
will receive a message through email indicating the
confirmation after successfully creating an account, and
once payment has been made.
Inventory Management
The most basic way involves monthly reviewing the
stock, possibly physically, to determine which inventory
items are in short supply by the purchase officer. He
then places orders when he believes a minimal level has
been reached or when the inventory of a certain item is
depleted. Inventory levels aren't recorded anywhere.
Using this approach would result in extra carrying and
purchase expenditures as well as stock-out costs. A
scarcity of inventory could impede business transactions
or result in lost revenues for the long term, whereas
86
excessive purchases would result in excessive investment
in slow-moving or outmoded inventories.
Fixed Assets
Table 3.2 shows the fixed assets such as furniture,
equipment, and leasehold improvement.
87
Table 3.2. List of properties
Other
Purchase Price Allocated Applicable
Particulars No. of Units Capitalizable Total Costs Presentation
Equivalent Freight-in Standards
Cost
Monitor 3 7,200 120 450 7,770 Properties PAS 16
System Unit 2 64,000 400 1,500 65,900 Properties PAS 16
Mouse 2 900 120 450 1,470 Properties PAS 16
Speaker 1 1,500 120 450 2,070 Properties PAS 16
Cooling System 1 1,200 400 300 1,900 Properties PAS 16
Books Aggregate 17,685,000 17,685,000 Books PAS 16
Office Chairs 10 30,000 500 750 31,250 Properties PAS 16
Tables 4 24,000 500 750 25,250 Properties PAS 16
Desktop Tables 3 19,500 500 750 20,750 Properties PAS 16
PAS 16, PFRS
Building 1 934,689 934,689 Right-of-Use
16
Website Design 1 250,000 250,000 Intangibles PAS 38
Leasehold
Wall Cabinet 5 30,000 900 2,500 33,400 PAS 16
Improvement
Lights Aggregate 4,500 100 900 5,500 Properties PAS 16
Aircon 2 34,000 400 1,000 35,400 Properties PAS 16
Leasehold
Toilet 2 11,000 200 850 12,050 PAS 16
Improvement
Leasehold
Water System 1 4,500 300 850 5,650 PAS 16
Improvement
88
BUSINESS LOCATION AND FLOOR PLAN
The office of the business will be located at J.
Hernandez Avenue, Naga City. The office is divided into
three sections: (a) conference room, (b) waiting area,
and (c)storage room. The conference room area is designed
to be a collaborative workspace. The space is enough to
provide spaces of privacy for events such as meetings and
designated workspaces for the employees. In addition, a
waiting area is included to accommodate those conducting
business, as well as to meet the body's nutritional needs
outside of working hours. Lastly, we have a storage area
for the books. In this area, we will keep those books
that are up for rent.
Figure 3.11.A. Floor Plan (Top View)
89
Figure 3.11.B. Floor Plan (Conference Area)
Figure 3.11.C. Floor Plan (Waiting Area)
90
Figure 3.11.D. Floor Plan (Storage)
Figure 3.11 shows what will the building space look
like. This is basically the building that will be rented
added with leasehold improvements and furntitures. The
storage room will be large enough to contain all books,
textbooks and reviewer books.
91
Waste Management
Figure 3.12 Solid Waste Management
Figure 3.12 shows how the business will implement
its waste management. The segregation of wastes is
important, and to ensure that the book rental service
maintains waste management, it ensures that segregation
of Reusable and Recyclable wastes is carried out
effectively. All solid waste will be collected by the
Solid Waste Management Office of LGU Naga City.
Quality Control
In any form of business, quality is critical. This
is what helps the company create its market reputation
and influences the company's performance. The required
controls must be observed to have and maintain a good
quality of a product/service. Implementing quality
control systems ensures that you provide excellent
92
service to your clients, which may result in higher
customer satisfaction.
To ensure the quality of our service, our personnel
must follow the following store rules and regulations:
1. Employees must dress appropriately. When
handling the book, the packager should use
gloves and a face mask.
2. Employees must arrive on time.
3. Employees must be obliged to understand and
follow the company's rules and regulations.
4. Employees must be expected to be familiar with
their responsibilities as given to them.
5. Appropriate training is necessary.
6. All books must be properly labeled and stored.
7. Maintain workplace cleanliness and proper
garbage disposal.
8. Examine products before they are delivered or
shipped out.
9. Apply control pests monthly.
93
CHAPTER IV
FINANCIAL STUDY
This chapter presents the financial assumptions and
projections, partners’ capital requirement, and projected
financial statements. This chapter is voluminous as it
provides for the comprehensive explanations for the sales
projections, cost determination, ascertaining OPEX,
partners’ capital requirement and profit division, and
other relevant matters. In other words, this chapter will
basically explain the items captured in the financial
statements and its interpretation.
FINANCIAL ASSUMPTIONS AND PROJECTIONS
In chapter 1, it is explained that there is an
expected increase in numbers of customers that will
consume the service. This expected increase is expressed
in percentage discounted by the survey result. Table
4.1.A comprehensively shows how customers’ projections
were made. Table 4.1.B shows the sales projections were
made based primarily on customers’ projection.
94
Table 4.1.A. Comprehensive customers’ projection
NUMBER OF CUSTOMERS PROJECTION IN 3 YEARS

Discoun Propone Discoun Propone Discoun
% of Discoun Discoun
Affordab Total % of 3 Expecte ted nt ted nt ted
Willing ted no. ted no.
ility % Accounta schools d Confide Expecte Expecte Expecte Expecte Expecte
Packages ness of of
(Table ncy of 572 Custome nce % d d d d d
(Table Custome Custome
1.8) Students schools r Custome Increas Increas Increas Increas
1.5) r r
r e % e % e % e %
Fx(1+J) Kx(1+M)
A B C AxBxC=D E DxE=F G I GxHxI=J L HxIxL=M
=K =N
FAR 1 62.75% 160,000 0.52% 527 60% 317 10% 90.20% 9.02% 346 20% 18.04% 409
FAR 2 64.71% 160,000 0.52% 544 60% 327 10% 90.20% 9.02% 357 20% 18.04% 422
FAR 3 66.67% 160,000 0.52% 560 60% 336 10% 90.20% 9.02% 367 20% 18.04% 434
FAR Grand 70.59% 160,000 0.52% 593 60% 356 10% 90.20% 9.02% 389 20% 18.04% 460
AFAR Journey 72.55% 160,000 0.52% 609 60% 366 10% 90.20% 9.02% 400 20% 18.04% 473
AFAR Guerrero 74.51% 160,000 0.52% 626 60% 376 10% 90.20% 9.02% 410 20% 18.04% 484
QE package 82.35% 160,000 0.52% 692 60% 416 10% 90.20% 9.02% 454 20% 18.04% 536
QE Prime 70.59% 160,000 0.52% 593 60% 356 10% 90.20% 9.02% 389 20% 18.04% 460
LECPA 74.51% 160,000 0.52% 626 60% 376 10% 90.20% 9.02% 410 20% 18.04% 484
LECPA 2 74.51% 160,000 0.52% 626 60% 376 10% 90.20% 9.02% 410 20% 18.04% 484
LECPA Prime 62.75% 160,000 0.52% 527 60% 317 10% 90.20% 9.02% 346 20% 18.04% 409
1 book 84.31% 160,000 0.52% 708 60% 425 10% 90.20% 9.02% 464 20% 18.04% 548
95
Total Accountancy Students are based on Business Mirror article authored by Joel Tan-Torres, which are based on 572
recognized schools
3 schools referes to AdNU, UNC, and NCF, schools that are near to the prospect business place
40% margin of error is provide to give allowance to exclusion of first year students and mistake in proportionating
the number
Table 4.1.B. Comprehensive sales projections
SALES PROJECTION IN 3 YEARS

Term Discounte Discounte
Discounted Unit New Unit
Preference Sales Per d Sales Per d Sales Per
Packages Expected Price of Price of
% (Table Package Expected Package Expected Package
Customers Package Package
1.6) Customers Customers
FAR 1 317 346 409

Monthly 36% 114 600 68,472 125 74,736 147 580 85,399
Semestral 48% 152 650 98,904 166 107,952 196 635 124,663
Annual 16% 51 725 36,772 55 40,136 65 735 48,098
FAR 2 327 357 422
Monthly 36% 118 600 70,632 129 77,112 152 580 88,114
Semestral 48% 157 650 102,024 171 111,384 203 635 128,626
Annual 16% 52 725 37,932 57 41,412 68 735 49,627
FAR 3 336 367 434
Monthly 36% 121 600 72,576 132 79,272 156 580 90,619
96
Semestral 48% 161 650 104,832 176 114,504 208 635 132,283
Annual 16% 54 725 38,976 59 42,572 69 735 51,038
FAR Grand 356 389 460
Monthly 36% 128 1000 128,160 140 140,040 166 1020 168,912
Semestral 48% 171 1150 196,512 187 214,728 221 1180 260,544
Annual 16% 57 1300 74,048 62 80,912 74 1365 100,464
AFAR Journey 366 400 473
Monthly 36% 132 800 105,408 144 115,200 170 820 139,630
Semestral 48% 176 1250 219,600 192 240,000 227 1280 290,611
Annual 16% 59 1400 81,984 64 89,600 76 1465 110,871
AFAR Guerrero 376 410 484
Monthly 36% 135 400 54,144 148 59,040 174 420 73,181
Semestral 48% 180 500 90,240 197 98,400 232 530 123,130
Annual 16% 60 700 42,112 66 45,920 77 765 59,242
QE package 416 454 536

Early
36% 150 150 22,464 163 24,516 193 170 32,803
returners
6 months 48% 200 440 87,859 218 95,885 257 470 120,922
7 months 16% 67 500 33,280 73 36,320 86 565 48,454
QE Prime 356 389 460
Early
36% 128 500 64,080 140 70,020 166 520 86,112
returners
97
Remaining 64% 228 600 136,704 249 149,376 294 630 185,472
LECPA 376 410 484
Early
36% 135 850 115,056 148 125,460 174 880 153,331
Returnes
Remaining 64% 241 1000 240,640 262 262,400 310 1030 319,053
LECPA 2 376 410 484
Early
84% 316 1800 568,512 344 619,920 407 1825 741,972
returners
Remaining 16% 60 2000 120,320 66 131,200 77 2060 159,526
LECPA Prime 317 346 409
Early
84% 266 2900 772,212 291 842,856 344 2900 996,324
returners
Remaining 16% 51 3500 177,520 55 193,760 65 3400 222,496
1 book 425 464 548
Monthly 36% 153 250 38,250 167 41,760 197 270 53,266
Semestral 48% 204 300 61,200 223 66,816 263 330 86,803
Annual 16% 68 400 27,200 74 29,696 88 465 40,771
TOTAL TOTAL TOTAL
4,088,625 4,462,905 5,372,358
SALES SALES SALES
98
The assumptions made in Table 4.1 are the
following:
1. Total accountancy students of 160,000 out of
572 schools are proportionate to 3 schools near
the prospect business place.
2. To compensate for errors and mismatch of
proportioning, also the exclusion of first year
students, 40% margin of error is assumed for
every package.
3. Before the conduct of the survey, proponents of
this business had expected a 10% increase a
year after the first year of operation and 20%
after it. However, according to the result of
the survey in Table 1.5, there are 90.20% who
are willing to acquire a book rental service.
This is multiplied to the 10% and 20% expected
increase rate. Therefore, there is a discounted
expected increase rate of 9.02% in year 2 and
18.04% in year 3.
4. The discounted expected number of potential
customers are then divided into the term
preference shown in Table 1.6.
Table 4.2.A. Cost of inventory projections for year 1
YEAR 1 COST OF INVENTORY PROJECTIONS
99
Discount
Desired Desired Books Cost of
Cost ed Books
Ending Ending Purcha Goods
Books per Expected Purchase
Inventory Inventory se in Sold per
Book Customer in Amount
in Unit in Amount Unit Package
s
A B AxB=C D B+D=E ExA=F DxA=G
FAR 1: PA1
Vol 1 by 300 100 30,000 317 417 125,100 95,100
Valix
FAR 2: PA
1 Vol 2 by 300 100 30,000 327 427 128,100 98,100
Valix
FAR 3: PA
1 Vol 1 by 300 100 30,000 168 268 80,400 50,400
Valix
FAR 3: PA
1 Vol 2 by 300 100 30,000 168 268 80,400 50,400
Valix
FAR Grand:
PA 1 Vol 1 300 100 30,000 356 456 136,800 106,800
by Valix
FAR Grand:
PA 1 Vol 2 300 100 30,000 356 456 136,800 106,800
by Valix
AFAR
Journey:
600 100 60,000 122 222 133,200 73,200
AFAR by
Dayag
AFAR
Journey:
AFAR 500 100 50,000 122 222 111,000 61,000
Quicknotes
by Bagayao
AFAR
Journey:
450 100 45,000 122 222 99,900 54,900
AFAR by
Punzalan
AFAR
Guerrero:
200 100 20,000 376 476 95,200 75,200
PA 2 by
Guerrero
1,126,90
TOTALS 355,000 771,900
0
100
Desired Desired Discounte Cost of
Beginning Books Goods
Ending Ending d Purchase in Goods Sold
Inventory Purchase Available
Inventory Inventory Expected Amount per
in Unit in Unit for Sale
in Unit in Amount Customers Package
H HxA=I B=J K J+K-H=L LxA=M C+M=N KxA=O

200 60,000 100 346 446 133,800 163,800 103,800
200 60,000 100 357 457 137,100 167,100 107,100
200 60,000 100 184 284 85,050 115,050 55,050
200 60,000 100 184 284 85,050 115,050 55,050
200 60,000 100 389 489 146,700 176,700 116,700
200 60,000 100 389 489 146,700 176,700 116,700
200 120,000 100 133 233 140,000 200,000 80,000
200 100,000 100 133 233 116,667 166,667 66,667
200 90,000 100 133 233 105,000 150,000 60,000
200 40,000 100 410 510 102,000 122,000 82,000
710,000 1,198,067 1,553,067 843,067
Desired Desired Cost of

Beginning Discounted Books Goods
Ending Ending Purchase in Goods
Inventory Expected Purchase Available
Inventory Inventory Amount Sold per
in Unit Customers in Unit for Sale
in Unit in Amount Package
P PxA=Q H=R S R+S-P=T TxA=U I+U=V SxA=W

122,70
200 60,000 200 409 409 122,700 182,700
0
126,60
200 60,000 200 422 422 126,600 186,600
0
200 60,000 200 217 217 65,100 125,100 65,100
200 60,000 200 217 217 65,100 125,100 65,100
138,00
200 60,000 200 460 460 138,000 198,000
0
138,00
200 60,000 200 460 460 138,000 198,000
0
200 120,000 200 158 158 94,600 214,600 94,600
200 100,000 200 158 158 78,833 178,833 78,833
200 90,000 200 158 158 70,950 160,950 70,950
200 40,000 200 484 484 96,800 136,800 96,800
1,706,68 996,68
710,000 996,683
3 3
101
The assumption in Table 4.2.A are the following:
1. In order to support the next period sale, a
desired inventory of 100 per package is
assumed. The desired inventory per package is
further increased in the following 2 periods
since sales have also increased.
2. It is assumed also that no impairment of
inventories have occurred in the covered
periods thus the cost per package recognized in
the first period is also the cost in the
following periods.
The assumption in Table 4.2.B are the following:
1. The number of purchases of books are based on
rounded up values that are enough to cover the
need of the third period. The historical cost
of 17,685,000 is directly and equally funded by
partners. According to BIR regulations, the
estimated useful life of a book is 5 years;
however, due to the addition of maintenance of
the book, the estimated useful life is extended
by 4 years.
2. It is assumed that the books that are not
rented out will not depreciate but will be
subject to impairment. The time method is used
102
since there is a direct relationship between
revenue generation and cost consumption. All
books have 9 years of life and this is
converted to months.
103
Table 4.2.B. Cost projection of books for rent
BOOKS COST DATA YEAR 1 PROJECTION FOR INVENTORIABLE DEPRECIATION
No. of Estimate No. Inventoria

Discounted Total
Cost per Units Total Cost of d Time Books to Monthly Semestral Annual ble
Books Expected Rented
Book per Books of Use be (36%) (48%) (16%) Depreciati
Customers Books
Book (Months) Rented on
(F/B)(C)( (F/B)(C)( (F/B)(C)(

A B AxB=C D E Z ExZ=F 36%)(1/D) 48%)(6/D) 16%)(12/D G+H+I=J
=G =H )=I
FAR 1: IA 1 by
300 500 150,000 108 317 1 317 317 2,536 1,691 4,544
Valix
FAR 2: IA 2 by
300 500 150,000 108 327 1 327 327 2,616 1,744 4,687
Valix
FAR 3: IA 3 by
300 500 150,000 108 336 1 336 336 2,688 1,792 4,816
Valix
FAR Grand: IA 1,
300 1400 420,000 108 356 3 1068 1,068 8,544 5,696 15,308
2, &3 by Valix
AFAR Journey: AFAR

650 500 325,000 108 366 1 366 793 6,344 4,229 11,366
by Dayag
AFAR Guerrero: AA
200 1000 200,000 108 376 2 752 501 4,011 2,674 7,186
1 & 2 by Guerrero
Average 108 Early 6 Months Maximum
104
Cost Returner
s
QE: 2 books 450 1100 495,000 108 416 2 832 1,248 9,984 3,883 15,115
QE Prime: 10 books 450 4650 2,092,500 108 356 10 3560 5,340 42,720 16,613 64,673
LECPA: 7 books 450 3400 1,530,000 108 376 7 2632 3,948 31,584 0 35,532
LECPA 2: 20 450 10000 4,500,000 108 376 20 7520 11,280 90,240 45,120 146,640
LECPA Prime:
450 16500 7,425,000 108 317 40 12680 19,020 152,160 76,080 247,260
Indefinite
1 Book: 1 book 450 550 247,500 108 425 1 425 638 5,100 3,400 9,138
TOTALS 17,685,000 566,264
YEAR 2 PROJECTION FOR INVENTORIABLE DEPRECIATION YEAR 3 PROJECTION FOR INVENTORIABLE DEPRECIATION
Discoun
No. Invento ted No. Invento
Discounted Total Semestr Total Semestr
Books Monthly Annual riable Expecte Books Monthly Annual riable
Expected Rented al Rented al
to be (36%) (16%) Depreci d to be (36%) (16%) Depreci
Customers Boooks (48%) Boooks (48%)
Rented ation Custome Rented ation
rs
(L/B)(C (L/B)(C (L/B)(C (S/B)(C (S/B)(C (S/B)(C

K Z KxZ=L )(36%)( )(48%)( )(16%)( M+N+O=P Q Z QxZ=S )(36%)( )(48%)( )(16%)( T+U+V=W
1/D)=M 6/D)=N 1/D)=O 1/D)=T 6/D)=U 1/D)=V
346 1 346 346 2,768 1,845 4,959 409 1 409 409 3,272 2,181 5,862
105
357 1 357 357 2,856 1,904 5,117 422 1 422 422 3,376 2,251 6,049
367 1 367 367 2,936 1,957 5,260 434 1 434 434 3,472 2,315 6,221
389 3 1167 1,167 9,336 6,224 16,727 460 3 1380 1,380 11,040 7,360 19,780
400 1 400 867 6,933 4,622 12,422 473 1 473 1,025 8,199 5,466 14,689
410 2 820 547 4,373 2,916 7,836 484 2 968 645 5,163 3,442 9,250
Early Early
6 6
Returne Maximum Returne Maximum
Months Months
rs rs
454 2 908 1,362 10,896 4,237 16,495 536 2 1072 1,608 12,864 5,003 19,475
389 10 3890 5,835 46,680 18,153 70,668 460 10 4600 6,900 55,200 21,467 83,567
410 7 2870 4,305 34,440 0 38,745 484 7 3388 5,082 40,656 45,738
410 20 8200 12,300 98,400 49,200 159,900 484 20 9680 14,520 116,160 58,080 188,760
346 40 13840 20,760 166,080 83,040 269,880 409 40 16360 24,540 196,320 98,160 319,020
464 1 464 696 5,568 3,712 9,976 548 1 548 822 6,576 4,384 11,782
617,986 730,192
106
In this proposed business, a shipping fee related
to the delivery of reviewer books to the customers are
shouldered by the company. The shipping terms are derived
from J&T express which is the assumed logistic provider
of the company. Table 4.3 shows the comprehensive
solution from this assumption.
In the first two years of operation, it is assumed
that the business will hire three administrative
employees and three laborers who will work on packaging
the ordered packages. Table 4.4.A shows the assumptions
in the employee benefits, the following are expanded
assumptions:
1. One of the three administrative employees is
the purchase officer who will receive a salary
of 44.75 (47.25 on third year) pesos per hour.
2. Another administrative employee is the
bookkeeper who will receive a salary of 48.50
(54.75 on third year) pesos per hour.
3. Finally, the website manager will receive 46.25
(52.25 on third year) pesos per hour.
4. The three laborers will receive a variable
salary of 100.00 (and 110 on third year) pesos
per completed packaging and an allowance per
day of 54.00 pesos.
107
Table 4.3. Estimated shipping payments
FREIGHT OUT PAYMENTS

Estimated Discounted Discounted Discounted
J&T Shipping Shipping Fee Shipping Fee Shipping Fee
Packages Weight of Expected Expected Expected
Fee per Package per Package per Package
Parcel Customers Customers Customers
FAR 1 400g 85 317 26,945 346 29,410 409 34,765

FAR 2 400g 85 327 27,795 357 30,345 422 35,870
FAR 3 400g 85 336 28,560 367 31,195 434 36,890
FAR Grand 1kg 200g 180 356 64,080 389 70,020 460 82,800
AFAR Journey 600g 155 366 56,730 400 62,000 473 73,315
AFAR Guerrero 500g 85 376 31,960 410 34,850 484 41,140
TOTALS 236,070 257,820 304,780
Table 4.4.A. Year 1 and 2 administrative employees’ benefit
ADMINISTRATIVE PERSONNEL SALARIES (Year 1 & 2)

Hours 30-day 31-day February
Salary per Salary per 13 Month Annual
Employees Worked per month less month less less 12 Free Month
Hour Day Pay Salary
Day 12 days 12 days days
Dx4+Ex6+F+G
=I
Purchase Officer 44.75 8 358.00 6,444.00 6,802.00 5,728.00 6,802.00 Apr, May 79,118.00
108
Dec, Apr,
Web Manager #1 46.25 8 370.00 6,660.00 7,030.00 5,920.00 7,030.00 74,740.00
May
TOTAL 239,606.00
Table 4.4.B. Year 1 laborers’ benefit
YEAR 1 LABOR SALARIES

Total Year 1
Divided by Allowanc Total Total
Discounted Salary Packagin Total Year 1
Employees No. of Output e per Working Allowanc
Expected per Pack g Salaries
Employees Day Days e
Customer Salaries
A B A/B=C D DxC=E F G GxF=H H+E=I
Packager #1 4344 3 1448 100 144,800 54 202 10,908 155,708.00

Packager #2 4344 3 1448 100 144,800 54 202 10,908 155,708.00
Packager #3 4344 3 1448 100 144,800 54 202 10,908 155,708.00
TOTAL 467,124.00
Table 4.4.C. Year 2 laborers’ benefit

Total
Divided Year 2 Allowanc Total Total
Discounted Salary per Total Year 2
Employees by No. of Output Packaging e per Working Allowanc
Expected Pack Salaries
Employees Salaries Day Days e
Customer
Packager #1 4742 3 1581 100 158,067 54 202 10,908 168,974.67

Packager #2 4742 3 1581 100 158,067 54 202 10,908 168,974.67
Packager #3 4742 3 1581 100 158,067 54 202 10,908 168,974.67
109
TOTAL 506,924.00
Table 4.4.D. Year 3 administrative employees’ benefit
ADMINISTRATIVE PERSONNEL SALARIES (starting Year 3)

Hours 30-day 31-day February
Salary per Salary per 13 Month Annual
Employees Worked month less month less less 12 Free Month
Hour Day Pay Salary
per Day 12 days 12 days days
Dx4+Ex6+F+G=
I
Purchase
47.25 8 378.00 6,804.00 7,182.00 6,048.00 7,182.00 Apr, May 83,538.00
Officer
Dec, Apr,
Web Manager #1 52.25 8 418.00 7,524.00 7,942.00 6,688.00 7,942.00 84,436.00
May
Dec, Apr,
Web Manager #2 52.25 8 418.00 7,524.00 7,942.00 6,688.00 7,942.00 84,436.00
May
TOTAL 349,208.00
Table 4.4.E. Year 3 laborers’ benefit

Total
Divided by Year 3 Total Total
Discounted Salary Allowance Total Year 3
Employees No. of Output Packaging Working Allowanc
Expected per Pack per Day Salaries
Employees Salaries Days e
Customer
Packager #1 5603 3 1868 120 224,120 54 202 10,908 235,028.00

Packager #2 5603 3 1868 120 224,120 54 202 10,908 235,028.00
110
Packager #3 5603 3 1868 120 224,120 54 202 10,908 235,028.00
TOTAL 705,084.00
Table 4.5. Estimates of cleaning and utilities expenses
ANNUAL CLEANING EXPENSE AND UTILITY
Patriculars Cost Frequency per Year Total Cost
Wood Preservative 1,537 1 1,537
Isopropyl Alcohol 1,125 3 3,375
Paint 2,450 1 2,450

Mothballs 165 3 495
Vacuum Service 2,300 4 9,200
Utilities 1,400 12 16,800

TOTAL 33,857
111
Direct cost of the books acquisition and storage is
the cleaning expenses which are explained in Table 4.5.
Summarized in the Table. 4.5 is the cleaning expenses and
utilities which covers both water and electricity. Since
the working hours of employees throughout the three
periods do not change, it is assumed that utilities are
the same throughout the said years. Inventories of the
cleaning materials and book maintenance are not accounted
for since the value is immaterial to the business and
thus they are expensed when bought.
PARTNERS’ CAPITAL REQUIREMENT
Stated in chapter 3 is that the business will be
organized as general partnership, this means that the
investment and profit distribution will be divided from
and among themselves which in this proposed business is
equal division. The following assumptions are made
regarding capital requirement:
1. The first three months of acquiring inventory
of books for sale are shouldered by the
partners out from their own pockets. The cost
of which are divided equally.
112
2. The cost of all books for rent are shouldered
by the partners and not by the business. This
means that the total cost of 17,685,000 is a
direct investment of the partners. The cost is
divided equally.
3. In all aspects, it is practical to lease a
building rather than acquiring or constructing
one. This proposed business assumed a 10,000
pesos monthly payment for a storage as well as
office building which will be rented for 10
years. A 10-year rent is an adequate lease term
that substantially consumes the remaining life
of the prospect leased building. Therefore, the
finance type of lease is assumed for accounting
of this rent transaction. The proposed business
is, of course, required to restore the rented
property to its original condition. It is
provided that the first payment for the whole
year will be shouldered by the partners and
every payment will commence every first day of
the year. Rent yield rate in the Philippines,
on average, is 6.13%, while the yield rate for
dismantling cost is 10% standard.
113
4. To cover up for need for cash during start up,
cash of 1,200,000 pesos is to be provided by
the partners.
Table 4.6 shows the capital requirement for this proposed
business.
114
Table 4.6. Partners’ capital requirement
INITIAL CAPITAL REQUIREMENT

Requirement Berja Cantorne Dacuya Mendez Rey Estimated Cost
Books for Sale for

56,345.00 56,345.00 56,345.00 56,345.00 56,345.00 281,725.00
First 3 Months
Books for Rent 3,537,000.00 3,537,000.00 3,537,000.00 3,537,000.00 3,537,000.00 17,685,000.00
Lease First Year 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 120,000.00
Cash Budgets 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00 1,200,000.00
Total Investment 3,857,345.00 3,857,345.00 3,857,345.00 3,857,345.00 3,857,345.00 19,286,725.00
115
Other properties which the proposed business needed
will be provided by the fund raised from the continuing
operations. These properties are discussed in detail in
the projected balance sheet.
PROJECTED INCOME STATEMENT
Income statement is one of the five financial
statements required for financial reporting. Income
statement, according to IAS 1, is a formal statement
showing the financial performance or profit or loss of an
entity for a period of time. In this section, nominal
accounts are discussed thoroughly. It is to be noted that
in order to reflect actual rates, year 1 refers to 2023,
starting January 1, and so on.
116
Table 4.7. Projected income statement covering 3 periods
INCOME STATEMENT
For the year ended December 31
Sales 1,2 4,088,625.20 4,462,904.80 5,372,357.60
Cost of Goods Sold 3,4 1,338,164.28 1,461,052.78 1,726,875.39
Gross Profit 2,750,460.92 3,001,852.02 3,645,482.21
Operating Expenses
Freight-out 5 236,070.00 257,820.00 304,780.00
Salaries Expense 6,7 706,730.00 746,530.00 1,054,292.00
Cleaning and
8 33,857.00 33,857.00 33,857.00
Utilities Expense
Other Employee
7 94,656.20 98,358.74 144,119.24
Benefits
Depreciation of
10 29,130.79 29,130.79 29,130.79
Properties
Depreciation of
Leasehold 10 7,336.67 7,336.67 7,336.67
Improvement
Depreciation of
10 93,468.93 93,468.93 93,468.93
Right-of-Use Asset
Website Design
10 16,666.67 16,666.67 16,666.67
Amortization
Marketing Expense 11 55,000.00 15,000.00 15,000.00
Interest Expense 9 308.43 50,090.66 45,818.35
Total Operating
1,273,224.69 1,348,259.46 1,744,469.65
Expenses
Operating Income 1,477,236.23 1,653,592.56 1,901,012.57
Income Tax Expense 12 377,219.75 464,605.66 541,373.24
Net Income 1,100,016.48 1,188,986.91 1,359,639.32
117
PROJECTED BALANCE SHEET
Balance sheet, according to IAS 1, is a formal
statement showing the three elements comprising financial
position, namely assets, liabilities, and equity. It
shows the financing leverage of the firm at a point in
time. In this section, real accounts are discussed
thoroughly. Year 1 refers to 2023 beginning January 1 and
so on in order to reflect actual rates affecting those
balances. The balance sheet shows the balances of real
accounts at the start of the business before commencement
of the business.
118
Table 4.8. Projected balance sheet covering 3 periods
BALANCE SHEET
As of December 31
Pre-operation Year 1 Year 2 Year 3
Cash 15 1,200,000.00 1,278,276.49 1,341,800.92 2,069,776.95
Books for Sale 3 281,725.00 355,000.00 710,000.00 710,000.00
Total Current Asset 1,481,725.00 1,633,276.49 2,051,800.92 2,779,776.95
Books for Rent 4 17,685,000.00 17,118,735.72 16,500,749.61 15,770,557.56

Right-of-Use Asset 9,10 934,689.32 841,220.39 747,751.45 654,282.52
Leasehold Improvement 10 0.00 43,763.33 36,426.67 29,090.00
Website Design 10 0.00 233,333.33 216,666.67 200,000.00
Other Properties 10 0.00 168,129.21 138,998.43 109,867.64
Deferred Tax Asset 12 0.00 3,705.10 6,111.24
Total Noncurrent Asset 18,619,689.32 18,408,887.09 17,640,592.83 16,769,908.96
Total Asset 20,101,414.32 20,042,163.58 19,692,393.74 19,549,685.91
Employee Benefits Payable 6,7 10,607.31 11,091.74 16,307.71

Current Tax Liability 12 329,817.03 359,987.91 427,103.72
Total Current Liabilities 340,424.34 371,079.65 443,411.43
119
Lease Liability 9 811,604.97 811,604.97 741,356.36 666,801.50
Dismantling Provision 9 3,084.35 3,392.78 3,732.06 4,105.26
Deferred Tax Liability 12 497.29
Total Noncurrent Liabilities 814,689.32 814,997.75 745,585.70 670,906.77
Total Liabilities 814,689.32 1,155,422.10 1,116,665.35 1,114,318.19
Berja, Capital 16 3,857,345.00 3,777,348.30 3,715,145.68 3,687,073.54

Cantorne, Capital 16 3,857,345.00 3,777,348.30 3,715,145.68 3,687,073.54
Dacuya, Capital 16 3,857,345.00 3,777,348.30 3,715,145.68 3,687,073.54
Mendez, Capital 16 3,857,345.00 3,777,348.30 3,715,145.68 3,687,073.54
Rey, Capital 16 3,857,345.00 3,777,348.30 3,715,145.68 3,687,073.54
Total Partner's Capital 19,286,725.00 18,886,741.48 18,575,728.39 18,435,367.72
Total Liabilities and Equity 20,101,414.32 20,042,163.58 19,692,393.74 19,549,685.91
120
PROJECTED CASH FLOW STATEMENTS
Cash flow statement provides information about the
cash receipts and cash payments, categorized into
operating, investing, and financing activities of an
entity during a period. Listed within operating
activities are the revenue-producing activities such as
cash receipts from sales revenue, payment for
inventories, and cash payments for other operating
expenses including expenses. Listed within investing
activities are the acquisition and disposal of fixed
assets. Listed within financing activities are the cash
contribution from shareholders or borrowers and payment
to them.
The proposed business has decided to adopt Option 1
of classifying interest payments and receipts to the cash
flow statement. Therefore, the payment of lease principal
will be classified as financing activity while the
payment of lease related interest will be classified as
operating activities.
121
Table 4.9. Projected cash flow covering 3 periods
CASH FLOW STATEMENT

Year 1 Year 2 Year 3
Cash Flow in Operating Activities
Cash receipt from customers 15 4,088,625.20 4,462,904.80 5,372,357.60
Cash payment to suppliers 15 845,175.00 1,198,066.67 996,683.33
Cash payment to cleaning and utilities 15 33,857.00 33,857.00 33,857.00
Cash payment to freights 15 236,070.00 257,820.00 304,780.00
Cash payment to employee benefits 15 790,778.89 844,404.32 1,193,195.27
Cash payment to marketing activities 15 55,000.00 15,000.00 15,000.00
Cash payment to lease related interest 9 49,751 45,445
Cash payment to current taxes 15 51,107.82 430,232.39 480,865.96
Cash Inflow from Operating Activities 2,076,636.49 1,633,773.04 2,302,530.89
Cash Flow in Investing Activities
Cash payment for website design 15 250,000.00
Cash payment for leasehold improvement 15 51,100.00
Cash payment for other properties 15 197,260.00
Cash Outflow from Investing Activities 498,360.00
Cash Flow in Financing Activities
Cash receipt from partners 15 1,200,000.00
122
Cash payment to partners' normal drawings 15 1,500,000.00 1,500,000.00 1,500,000.00
Cash payment to principal of lease 9 70,249 74,555
Cash Outflow from Financing Activities 300,000.00 1,570,248.62 1,574,554.86
Net Cash Inflow 1,278,276.49 63,524.42 727,976.03
Cash Beginning Balance 0 1,278,276.49 1,341,800.92
Cash Ending Balance 1,278,276.49 1,341,800.92 2,069,776.95
123
Notes to Financial Statements
Note 1: Projection of number of customers
Refer to Table 4.1.A. The number of potential
customers are based on the total accountancy students
from 572 registered schools in the Philippines. The
proportion of 3 schools near the prospect business place
are determined. Error margin of 40% is assumed. The
increase in the number of customers is based on a
discounted expected rate.
Note 2: Sales projection in 3 years
Refer to Table 4.1.B. Survey results are reflected
out to the total number of potential customers per
package. The number of customers are then multiplied by
the package unit price to determine the annual sale per
package. The sale per package is then totaled to
determine the annual revenue.
Note 3: Inventory of books for sale
Refer to Table 4.2.A. It is to be noted that these
books are released to the customers upon the return of
the rented textbooks. Therefore, these books for sale
classification are the reviewer books. The cost per book
is the highest estimate in respect to the conservatism
principle (assumption that loss is anticipated). Net
realizable values of these inventories are not
124
anticipated since there is no reliable reference for the
determination of it. Write offs due to destruction are
not anticipated since there is an active program for
maintaining the books condition, refer to Note 8.
Note 4: Inventoriable depreciation of books for rent
Refer to Table 4.2.B. These are the books that are
rented during the term of the package. These books refer
to the textbooks which will be returned upon expiration
of the term. The depreciation of used books is determined
using the used hours method with 96 months total use.
Books for rent that are idle are assumed to be free of
depreciation but not of impairment. These depreciation
are considered inventoriable since it is directly
proportion to revenue generation hence recognized as cost
of goods sold.
Note 5: Freight out costs
Refer to Table 4.3. These are variable costs that
are classified as selling expenses. The weight of freight
out costs are largely dependent on the number of
packages. Freight out costs are incurred when the
reviewer books are delivered to the customers which means
that the freight term is FOB destination. The shipment
cost of books back to the business by the customer are
125
shouldered by the latter including the delivery of
reviewer books.
Note 6: Gross Salaries
Refer to series of Table 4.4. Salaries of
administrative employees are determined by their working
hours. Salaries of laborers are determined by the number
of packs they accomplished with daily allowance. It is
assumed that the payment of salaries will be at the end
of every working month, therefore, no outstanding
salaries at the end of the year.
Note 7: Employee Benefits Contribution
Refer to the series of Table 2.5 and Table 2.6.
Rates in year 1 are referenced to 2023 rates for all
contributions. There is no tax since the annual salaries
are below 250,000 pesos, however, the proposed business
will still submit the required BIR forms for compliance.
SSS and PhilHealth are payable at the end of the
following month, therefore, there are outstanding
contributions at the end of the year.
Note 8: Cleaning and utilities expenses
Refer to Table 4.5. Cleaning expenses refer to the
cost incurred for maintaining the condition of the books.
Utilities are the summarized and average cost of
electricity and water. Since the working hours of the
126
business are not expected to go beyond 10 hours, the
estimated bill is assumed to be low.
Note 9: Lease related liabilities
Refer to Table 4.10 and Table 4.11. No interest
related to the lease liability is recognized during the
1st year as the first payment is already paid on January
1. Interest related to dismantling is recognized
annually.
Table 4.10. Lease liability
LEASE LIABILITY PROJECTIONS

Carrying
Years Annual Payment Interest Expense Amortization
Amount
Year 1 811,605
Year 2 120,000 49,751 70,249 741,356
Year 3 120,000 45,445 74,555 666,802
In the Philippines, there is yield rate in rentals of 6.13%
Proposed business will rent a building for 10 years, this will
substantially consummate the remaining entire life of the building.
Therefore, finance lease is used
10,000 per month is the rental fee which is paid advance for a whole
year every start of the year.
PVOA of 6.13% in 9 periods is 6.76337475856, this is multiplied to
the annual payment
Table 4.11. Dismantling provision
DISMANTLING PROVISION
Years Interest Expense Carrying Amount
Year 1 3,084
Year 1 308 3,393
Year 2 339 3,732
Year 3 373 4,105
Dismantling cost of 8,000 is estimated.
The dismantling covers the repair and repainting of the rented
building. This dismantling will commence after a period of time.
127
The period for estimate computation is the same with the lease term
and 10% yield rate is assumed
PV of 10% in 10 periods is 0.3855432894, this is multiplied to the
estimated cost
Note 10: Fixed Cost Data
Refer to Table 4.12. The cost data of fixed asset
is shown in the table.
128
Table 4.12. Cost data of fixed assets
Purchase Other
Allocated Applicable Measurement
Particulars No. of Units Price Capitalizabl Total Costs Presentation
Freight-in Standards Model
Equivalent e Cost
Monitor 3 7,200 120 450 7,770 Properties PAS 16 Cost Model

System Unit 2 64,000 400 1,500 65,900 Properties PAS 16 Cost Model
Mouse 2 900 120 450 1,470 Properties PAS 16 Cost Model
Speaker 1 1,500 120 450 2,070 Properties PAS 16 Cost Model
Cooling System 1 1,200 400 300 1,900 Properties PAS 16 Cost Model
Books Aggregate 17,685,000 17,685,000 Books PAS 16 Cost Model
Office Chairs 10 30,000 500 750 31,250 Properties PAS 16 Cost Model
Tables 4 24,000 500 750 25,250 Properties PAS 16 Cost Model
Desktop Tables 3 19,500 500 750 20,750 Properties PAS 16 Cost Model
PAS 16,
Building 1 934,689 934,689 Right-of-Use Cost Model
PFRS 16
Website Design 1 250,000 250,000 Intangibles PAS 38 Cost Model
Leasehold
Wall Cabinet 5 30,000 900 2,500 33,400 PAS 16 Cost Model
Improvement
Lights Aggregate 4,500 100 900 5,500 Properties PAS 16 Cost Model
Aircon 2 34,000 400 1,000 35,400 Properties PAS 16 Cost Model
Leasehold
Toilet 2 11,000 200 850 12,050 PAS 16 Cost Model
Improvement
Leasehold
Water System 1 4,500 300 850 5,650 PAS 16 Cost Model
Improvement
129
TOTAL PROPERTIES 197,260
TOTAL LEASEHOLD
51,100
IMPROVEMENT
TOTAL RIGHT OF USE
934,689
ASSET
TOTAL BOOKS FOR RENT 17,685,000
TOTAL TANGIBLE ASSET 18,868,049
TOTAL INTANGIBLE ASSET 250,000
Cumulative Cumulative Cumulative

Estimated Useful Depreciati Depreciati Carrying Depreciati Carrying Depreciati Carrying
Depreciati Depreciati Depreciati
Life (Years) on Method on Amount on Amount on Amount
on on on
Straight-l
5 1,554 1,554 6,216 1,554 3,108 4,662 1,554 4,662 3,108
ine
Straight-l
7 9,414 9,414 56,486 9,414 18,829 47,071 9,414 28,243 37,657
ine
Straight-l
3 490 490 980 490 980 490 490 1,470 0
ine
Straight-l
4 518 518 1,553 518 1,035 1,035 518 1,553 518
ine
Straight-l
10 190 190 1,710 190 380 1,520 190 570 1,330
ine
Production 566,264 566,264 17,118,736 617,986 1,184,250 16,500,750 730,192 1,914,442 15,770,558
Straight-l
6 5,208 5,208 26,042 5,208 10,417 20,833 5,208 15,625 15,625
ine
6 Straight-l 4,208 4,208 21,042 4,208 8,417 16,833 4,208 12,625 12,625
130
ine
Straight-l
6 3,458 3,458 17,292 3,458 6,917 13,833 3,458 10,375 10,375
ine
Straight-l
10 93,469 93,469 841,220 93,469 186,938 747,751 93,469 280,407 654,283
ine
Straight-l
15 16,667 16,667 233,333 16,667 33,333 216,667 16,667 50,000 200,000
ine
Straight-l
6 5,567 5,567 27,833 5,567 11,133 22,267 5,567 16,700 16,700
ine
Straight-l
10 550 550 4,950 550 1,100 4,400 550 1,650 3,850
ine
Straight-l
10 3,540 3,540 31,860 3,540 7,080 28,320 3,540 10,620 24,780
ine
Straight-l
10 1,205 1,205 10,845 1,205 2,410 9,640 1,205 3,615 8,435
ine
Straight-
10 565 565 5,085 565 1,130 4,520 565 1,695 3,955
line
TOTAL PROPERTIES
DEPRECIATION 29,131 168,129 29,131 138,998 29,131 109,868
TOTAL LEASEHOLD
7,337 43,763 7,337 36,427 7,337 29,090
IMPROVEMENT DEPRECIATION
TOTAL RIGHT OF USE ASSET
93,469 841,220 93,469 747,751 93,469 654,283
DEPRECIATION
TOTAL INVENTORIABLE 17,118,73 16,500,75 15,770,55
566,264 617,986 730,192
DEPRECIATION 6 0 8
TOTAL AMORTIZATION 16,667 233,333 16,667 216,667 16,667 200,000
131
Note 11: Marketing expenses
Refer to the series of Table 4.13. There will be
marketing research in year 1 for the sole purpose of
determining an effective marketing program that will be
implemented for the next period for as long as it is
effective. There will be an annual marketing cost which
is the payment for Facebook ads. All of these costs are
paid when incurred.
Table 4.13.A. Facebook ads payment
ANNUAL ADVERTISING COST
Particulars Cost Frequency per Year Total Cost
Facebook 7,500 2 15,000

TOTAL 15,000
Table 4.13.B. Marketing research cost
MARKET RESEARCH COST (YEAR 1)
Particulars Cost No. of Unit Total Cost
Research 4,000 1 4,000

Salaries 18,000 2 36,000
TOTAL 40,000
Note 12: Tax adjustments and income tax
Refer to the series of Table 4.14. The corporate
income tax rate is 20% for entities with net taxable
income not exceeding 5 million pesos and total assets not
exceeding 100 million pesos, there is also a 3%
132
percentage tax. Tax depreciation is using an accelerated
depreciation method.
133
Table 4.14.A. Tax adjustments for depreciation
TAX DEPRECIATION ADJUSTMENT
Properties Historical Cost Useful Life SYD Depreciation Depreciation Depreciation

Monitor 7,770.00 5 15 2,590.00 2,072.00 1,554.00
System Unit 65,900.00 7 28 16,475.00 14,121.43 11,767.86
Mouse 1,470.00 3 6 735.00 490.00 245.00
Speaker 2,070.00 4 10 828.00 621.00 414.00
Cooling System 1,900.00 10 55 345.45 310.91 276.36
Office Chairs 31,250.00 6 21 8,928.57 7,440.48 5,952.38
Tables 25,250.00 6 21 7,214.29 6,011.90 4,809.52
Desktop Tables 20,750.00 6 21 5,928.57 4,940.48 3,952.38
Building 934,689.32 10 55 169,943.51 152,949.16 135,954.81
Website Design 250,000.00 15 120 31,250.00 29,166.67 27,083.33
Wall Cabinet 33,400.00 6 21 9,542.86 7,952.38 6,361.90
Lights 5,500.00 10 55 1,000.00 900.00 800.00
Aircon 35,400.00 10 55 6,436.36 5,792.73 5,149.09
Toilet 12,050.00 10 55 2,190.91 1,971.82 1,752.73
Water System 5,650.00 10 55 1,027.27 924.55 821.82
Tax Depreciation 264,435.80 235,665.49 206,895.19
Financial
163,269.72 163,269.72 163,269.72
Depreciation
Difference 101,166.08 72,395.78 43,625.47
134
Deferred Tax
20,233.22 14,479.16 8,725.09
Liability
Table 4.14.B. Tax adjustments for interest payment
TAX INTEREST ADJUSTMENT AND NET DEFERRED TAX
Years Payment Interest Recognized Difference Deferred Tax Asset Net Deferred Tax
Year 1 120,000 308.43 119,692 23,938 -3,705

Year 2 120,000 50,090.66 69,909 13,982 497
Year 3 120,000 45,818.35 74,182 14,836 -6,111
Table 4.14.C. Summary of tax expense
TAX EXPENSE
Nonta Nonta Increase
Future Future
Financial xable xable Taxable Current Tax in Percentage Income Tax
Years Taxable Deductible
Income Reven Expen Income Expense Deferred Tax Expense
Amount Amount
ues ses Tax
Year 1 1,477,236.23 0.00 0.00 101,166.08 119,691.57 1,495,761.72 299,152.34 -3,705.10 81,772.50 377,219.75
Year 2 1,653,592.56 0.00 0.00 -28,770.30 -49,782.23 1,632,580.64 326,516.13 4,202.38 133,887.14 464,605.66
Year 3 1,901,012.57 0.00 0.00 -28,770.30 4,272.31 1,934,055.18 386,811.04 -6,608.52 161,170.73 541,373.24
135
Note 13: Initial capital requirement and funding
Refer to Table 4.6. The required financing is
divided among the partners.
Note 14: Profit distribution
Refer to Table 4.15. Partners agreed that 25,000
pesos salaries are monthly given to each of the partners.
The remaining balance is to be divided equally. The
salaries are considered as normal drawings and are to be
given even if there is an anticipated loss.
Note 15: Budgeted cash
Refer to Table 4.16. This shows the simplified cash
flow each year. Cash inflows are categorized individually
from the total cash outflows. This is used as a reference
for the cash flow statement.
Note 16: Changes in partners’ equity
Refer to Table 4.17. This shows the flow of
allocation of the net profit or loss each period covered.
This also shows the changes in each partner’s capital
balance. This served as the transition from income
statement to balance sheet when it comes to partners’
equity.
136
Table 4.15. Profit distribution schedule
PROFIT DISTRIBUTION
Particulars Berja Cantorne Dacuya Mendez Rey Total
YEAR 1
Salaries 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 1,500,000.00

Remaining -79,996.70 -79,996.70 -79,996.70 -79,996.70 -79,996.70 -399,983.52
Share 220,003.30 220,003.30 220,003.30 220,003.30 220,003.30 1,100,016.48
YEAR 2
Salaries 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 1,500,000.00

Remaining -62,202.62 -62,202.62 -62,202.62 -62,202.62 -62,202.62 -311,013.09
Share 237,797.38 237,797.38 237,797.38 237,797.38 237,797.38 1,188,986.91
YEAR 3
Salaries 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 1,500,000.00

Remaining -28,072.14 -28,072.14 -28,072.14 -28,072.14 -28,072.14 -140,360.68
Share 271,927.86 271,927.86 271,927.86 271,927.86 271,927.86 1,359,639.32
Table 4.16. Cash budget
CASH BALANCE ESTIMATE

Particulars Amount
YEAR 1
Investment 13 1,200,000.00
Sales Receipt 2 4,088,625.20
Total Cash Inflow 5,288,625.20
137
Books for Sale for 9 months 3,13 845,175.00
Freight outs 5 236,070.00
Employee Benefits 7 790,778.89
Website Payment 10 250,000.00
Other Properties 10 197,260.00
Leasehold Improvement 10 51,100.00
Marketing Payment 11 55,000.00
Cleaning and Utilities 8 33,857.00
Current Tax Payment 12 51,107.82
Partner's Salaries 14 1,500,000.00
Total Cash Outflow 4,010,348.71
Ending Cash Balance 1,278,276.49

YEAR 2
Investment 0.00
Books for Sale 3,13 1,198,066.67

Employee Benefits 7 844,404.32
138
Lease Payments 9 120,000.00
Current Tax Payments 12 430,232.39
Partners Salaries 14 1,500,000.00

YEAR 3
Investment 0.00
Books for Sale 3,13 996,683.33

Employee Benefits 7 1,193,195.27
Lease Payments 9 120,000.00
Current Tax Payment 12 480,865.96
Partners Salaries 14 1,500,000.00
139
Table 4.17. Statement of changes in partners’ equity
STATEMENT OF CHANGES IN PARTNERS's EQUITY

Berja Cantorne Dacuya Mendez Rey Total
YEAR 1
Investment 13 3,857,345.00 3,857,345.00 3,857,345.00 3,857,345.00 3,857,345.00 19,286,725.00

Share in Profit 14 220,003.30 220,003.30 220,003.30 220,003.30 220,003.30 1,100,016.48
Monthly Drawing 14 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 1,500,000.00
Ending Balance 3,777,348.30 3,777,348.30 3,777,348.30 3,777,348.30 3,777,348.30 18,886,741.48
YEAR 2
Investment 0.00 0.00 0.00 0.00 0.00 0.00

Share in Profit 14 237,797.38 237,797.38 237,797.38 237,797.38 237,797.38 1,188,986.91
Monthly Drawing 14 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 1,500,000.00
Ending Balance 3,715,145.68 3,715,145.68 3,715,145.68 3,715,145.68 3,715,145.68 18,575,728.39
YEAR 3
Investment 0.00 0.00 0.00 0.00 0.00 0.00

Share in Profit 14 271,927.86 271,927.86 271,927.86 271,927.86 271,927.86 1,359,639.32
Monthly Drawing 14 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 1,500,000.00
Ending Balance 3,687,073.54 3,687,073.54 3,687,073.54 3,687,073.54 3,687,073.54 18,435,367.72
140
FINANCIAL STATEMENT ANALYSIS
Financial statement analysis is the process of
extracting information from financial statements to
better understand a company’s current and future
performance and financial condition. (Financial
Management 2021-2022 Edition, Cabrera et al, 2021).
This section is further divided into subsections;
common-size financial statements, liquidity ratios, asset
management ratios, debt management ratios, profitability
ratios, cash flow analysis, and payback period.
The balance sheet shows the accounts at the first
day of operation, this is to show how much is the total
financing of the resources before the operation in 2023.
When computing for average balances of a certain account,
the first day balance will serve as the beginning balance
for year 1 financial ratios.
Common-size financial statements
Series of Table 4.18 show the horizontal and
vertical analysis of the financial statements. The
covered financial statements of these analysis are the
income statement and balance sheet as these are the
primary and material statements disclosing information
about the proposed business.
141
Table 4.18.A. Common-size income statement
INCOME STATEMENT
Sales 100.00% 9.15% 100.00% 20.38% 100.00%

Cost of Goods Sold 32.73% 9.18% 32.74% 18.19% 32.14%
Gross Profit 67.27% 9.14% 67.26% 21.44% 67.86%
Operating Expenses
Freight-out 5.77% 9.21% 5.78% 18.21% 5.67%
Salaries Expense 17.29% 5.63% 16.73% 41.23% 19.62%
Cleaning and Utilities Expense 0.83% 0.00% 0.76% 0.00% 0.63%
Other Employee Benefits 2.32% 3.91% 2.20% 46.52% 2.68%
Depreciation of Properties 0.71% 0.00% 0.65% 0.00% 0.54%
Depreciation of Leasehold Improvement 0.18% 0.00% 0.16% 0.00% 0.14%
Depreciation of Right-of-Use Asset 2.29% 0.00% 2.09% 0.00% 1.74%
Website Design Amortization 0.41% 0.00% 0.37% 0.00% 0.31%
Marketing Expense 1.35% -72.73% 0.34% 0.00% 0.28%
Interest Expense 0.01% 16140.28% 1.12% -8.53% 0.85%
Total Operating Expenses 31.14% 5.89% 30.21% 29.39% 32.47%
Operating Income 36.13% 11.94% 37.05% 14.96% 35.39%
Income Tax Expense 9.23% 23.17% 10.41% 16.52% 10.08%
142
Net Income 26.90% 8.09% 26.64% 14.35% 25.31%
Table 4.18.B. Common-size balance sheet
As of December 31
First Day Year 1 Year 2 Year 3
Cash 5.97% 6.52% 6.38% 4.97% 6.81% 54.25% 10.59%

Books for Sale 1.40% 26.01% 1.77% 100.00% 3.61% 0.00% 3.63%
Total Current Asset 7.37% 10.23% 8.15% 25.62% 10.42% 35.48% 14.22%
Books for Rent 87.98% -3.20% 85.41% -3.61% 83.79% -4.43% 80.67%
Right-of-Use Asset 4.65% -10.00% 4.20% -11.11% 3.80% -12.50% 3.35%
Leasehold Improvement 0.00% 0.22% -16.76% 0.18% -20.14% 0.15%
Website Design 0.00% 1.16% -7.14% 1.10% -7.69% 1.02%
Other Properties 0.00% 0.84% -17.33% 0.71% -20.96% 0.56%
Deferred Tax Asset 0.00% 0.02% -100.00% 0.00% 0.03%
Total Noncurrent Asset 92.63% -1.13% 91.85% -4.17% 89.58% -4.94% 85.78%
Total Asset 100.00% -0.29% 100.00% -1.75% 100.00% -0.72% 100.00%
Employee Benefits Payable 0.00% 0.05% 4.57% 0.06% 47.03% 0.08%

Current Tax Liability 0.00% 1.65% 9.15% 1.83% 18.64% 2.18%
Total Current Liabilities 0.00% 1.70% 9.01% 1.88% 19.49% 2.27%
143
Lease Liability 4.04% 0.00% 4.05% -8.66% 3.76% -10.06% 3.41%
Dismantling Provision 0.02% 10.00% 0.02% 10.00% 0.02% 10.00% 0.02%
Deferred Tax Liability 0.00% 0.00% 0.00% -100.00% 0.00%
Total Noncurrent Liabilities 4.05% 0.04% 4.07% -8.52% 3.79% -10.02% 3.43%
Total Liabilities 4.05% 41.82% 5.76% -3.35% 5.67% -0.21% 5.70%
Berja, Capital 19.19% -2.07% 18.85% -1.65% 18.87% -0.76% 18.86%

Cantorne, Capital 19.19% -2.07% 18.85% -1.65% 18.87% -0.76% 18.86%
Dacuya, Capital 19.19% -2.07% 18.85% -1.65% 18.87% -0.76% 18.86%
Mendez, Capital 19.19% -2.07% 18.85% -1.65% 18.87% -0.76% 18.86%
Rey, Capital 19.19% -2.07% 18.85% -1.65% 18.87% -0.76% 18.86%
Total Partner's Capital 95.95% -2.07% 94.24% -1.65% 94.33% -0.76% 94.30%
Total Liabilities and Equity 100.00% -0.29% 100.00% -1.75% 100.00% -0.72% 100.00%
144
As shown in the face of the common-size income
statement, cost of goods sold is the highest contribution
on the sale. The cost of goods sold is the combination of
books for sale inventories sold and the inventoriable
depreciation of books for rent. Remember that books for
sale refers to the reviewer books while books for rent
refers to textbooks in the first packages. This is
followed by the freight out cost which is variable cost.
Sales, cost of goods sold, and gross profit have the same
rate of increase from year 1 to year 2, while in between
year 2 and year 3, the increase rate varies due to the
lower package price but the same cost of goods sold.
Interest expenses have a soaring increase rate in between
year 1 and year 2 because of intervention of
lease-related interest expense during year 2 and 3. Other
relevant explanations are conjunct with the financial
ratios.
Table 4.19. Financial ratios
FINANCIAL ANALYSIS
Covering 3 projected periods
Name Formula Year 1 Year 2 Year 3
Short Term Solvency

Total Current Assets /
Current Ratio Total Current 4.80 5.53 6.27
Liabilities
Total Quick Assets /
Acid Test
Total Current 3.75 3.62 4.67
Ratio
Liabilities
145
Working Working Capital / Total
6.45% 8.53% 11.95%
Capital Assets
Cash Flow
Cash + Cash from OA /
Liquidity 9.86 8.02 9.86
Current Liabilities
Ratio
Management Efficiency
Inventory
CGS / Average Inventory 2.42 1.58 1.40
Turnover
360 days / Inventory
Daily Supply 148 227 256
turnover
Working
Net Sales / Ave.
Capital 2.95 3.00 2.67
Working Capital
Turnover
Current Asset CGS + OPEX + TAX / Ave.
1.46 1.36 1.30
Turnover Current Assets
Ave. Cash Balance /
Days Cash Cash operating costs / 297 283 287
360
Net Sales / Average
Asset Turnover 0.20 0.22 0.27
Total Asset
Fixed Asset Net Sales / Average
0.22 0.25 0.31
Turnover Fixed Asset
Capital
Intensity Total Asset / Net Sales 4.90 4.41 3.64
Ratio
Leverage or Financing
Total Liabilities /
Debt Ratio 5.76% 5.67% 5.70%
Total Assets
Total Equity / Total
Equity Ratio 94.24% 94.33% 94.30%
Assets
Debt to Equity Total Liabilities /
6.12% 6.01% 6.04%
Ratio Total Equity
Fixed Asset to
Fixed Assets / Tota
Long term 22.59 23.66 25.00
Long-term Liabilities
liabilities
Fixed Asset to Fixed Assets / Total
0.97 0.95 0.91
Equity Equity
Time interest
EBIT / Annual Interest 4788.46 32.01 40.49
earned
Profitability Ratio
Gross Profit Gross profit / Net
67.27% 67.26% 67.86%
Margin Sales
146
Operating Operating profit / Net
36.13% 37.05% 35.39%
Profit Margin sales
Net Profit
Net profit / Net Sales 26.90% 26.64% 25.31%
Margin
Cash Flow Cash Flow from OA / Net
50.79% 36.61% 42.86%
Margin Sales
Asset Turnover x Net
ROA 5.48% 5.98% 6.93%
Profit Margin
Net Income / Ave.
ROE 5.76% 6.35% 7.35%
Equity
Net Income / Ave.
ROCA 70.63% 64.53% 56.28%
Current Assets
ROCA per ROCA / Current Assets
0.48 0.47 0.43
turnover Turnover
Cash Flow Analysis
Cash Flow from OA /
Financial
Average Current 12.20 4.59 5.65
Liquidity
Liabilities
Cash Flow from OA /
Financial
Average Total 2.11 1.44 2.06
Flexibility
Liabilities
Cash Flow from OA - IA 802,530.

Free Cash Flow 78,276.49 133,773.04
- Return to Partner 89
Liquidity ratios
Liquidity ratios show the firm’s ability to pay off
debts that are maturing within a year or within the next
operating cycle. (Financial Management 2021-2022 Edition,
Cabrera et al, 2021).
1. Current ratio - serves as a primary test of
solvency to meet current obligations from
current assets. (Financial Management 2021-2022
Edition, Cabrera et al, 2021). For every peso
of liability there is an equivalent amount of
147
peso determined by current ratio. A higher
current ratio means a stronger liquidity. As
shown in the table, the current ratio from year
1 to year 3 is increasing with 4.80 current
assets to 1.00 current liability in year 1,
5.53 to 1.00 in year 2, and 6.27 to 1.00 in
year 3. This is a good indication for potential
creditors and that the firm can acquire
short-term liabilities easily.
2. Acid-test ratio - a more severe test of
immediate solvency. (Financial Management
2021-2022 Edition, Cabrera et al, 2021). The
only available quick asset in the proposed
business is cash. As shown in the table, the
acid-test ratio from year 1 to year 3 is
increasing with 3.75 cash to 1.00 current
liability in year 1, 3.62 to 1.00 in year 2,
and 4.67 to 1.00 in year 3. This is a good
indication of potential creditors as they can
receive adequate cash for their provided debt.
3. Working capital to assets - indicate relative
liquidity of total assets and distribution of
resources employed. (Financial Management
2021-2022 Edition, Cabrera et al, 2021). The
148
working capital is only a few percent of total
assets; however, this is increasing from year 1
to 2 indicating that the proposed business is
aggressively gaining more liquidity as time
passes by. In year 1, the working capital is
only 6.45% of total assets, 8.53% in year 2,
and 11.95% in year 3. The working capital is
increased by 2.75% on average per year.
4. Cash-flow liquidity ratio - this ratio
considers both the cash balance as of the end
of the period and the total cash flow from
operating activities in the cash flow
statement. In fact, this ratio also considers
the marketable securities, a very highly liquid
asset that is readily convertible to cash. As
shown in the table, the cash-flow liquidity
ratio from year 1 to year 2 has decreased by
1.84. This is due to the number of purchases
during year 2, remember that the expected sales
and desired ending inventory in year 2
increased significantly from year 1, also
consider the net cash inflow during year 2.
From year 2 to year 3, the ratio reversed.
Asset management ratios
149
Asset management ratios show how efficiently the
firm is using its assets which is necessary for
maximizing the profit without too many costs. (Financial
1. Inventory turnover - measures the efficiency of
the firm in managing and selling inventories.
(Financial Management 2021-2022 Edition,
Cabrera et al, 2021). The higher the turnover
the better the efficiency of managing and
converting the inventories into revenue. As
shown in the table, the turnover rate declines
over the 3 periods with 2.42 in year 1, 1.58 in
year 2, and 1.40 in year 3. This is due to the
increase in desired ending inventory in year 2
and 3.
2. Average sale period - the number of days taken
to sell the entire inventory. This is relative
to the computation of inventory turnover and is
the clearer representation of management
efficiency of selling the inventory. As the
inventory turnover declines so as the average
sale period. In year 1, it takes 148 days in
order to convert the inventory into sale, 227
days in year 2, and 256 in year 3.
150
3. Working capital turnover - indicates adequacy
and activity of working capital (Financial
Management 2021-2022 Edition, Cabrera et al,
2021). The ratio has increased from year 1 to
year 2 and decreased from year 2 to year 3,
this is due to the fact that the cash
availability during year 2 has decreased
significantly from other period. This does not
mean that the management effectively and
efficiently exert effort to convert every peso
of working capital it owns to that computed
figure because other factors should be
considered such as the withdrawals of partners.
However, the prevailing factor is the increase
in number of goods purchased from year 1 to
year 2 and the increase in current liability
during year 2.
4. Current assets turnover - measures the movement
and utilization of current resources to meet
operating requirements. Operating requirements
are the operating costs that are settled
through cash and not through the wear and tear
like depreciation. Higher turnover is preferred
as it indicates that the current assets are
151
used to settle those cash expenses. As shown in
the table, the turnover declines over the 3
periods.
5. Days cash - measures the availability of cash
to meet average daily cash requirement.
Cabrera et al, 2021). Higher result of
computation is preferred. As shown in the
table, the ratio has declined from year 1 to
year 2 but has recovered aggressively in year 2
to year 3. In year 1, the firm can continue to
use its cash for 297 days. In year 2, the firm
can continue to use its cash for 283 days. The
decline is due to the fact that there is more
purchase requirement in year 2. In year 3, the
firm can continue to use its cash for 287 days.
6. Asset turnover - measures efficiency of the
firm in managing all assets. (Financial
2021). As shown in the table, the turnover has
increased over the 3 periods but are not too
impressive with 0.20 in year 1, 0.22 in year 2,
and 0.27 in year 3. Since current asset
turnover declines but asset turnover increases,
152
this means that the fixed asset turnover is
increasing.
7. Fixed asset turnover - tests roughly the
efficiency of management in keeping plant
properties employed. (Financial Management
2021-2022 Edition, Cabrera et al, 2021).
agement 2021-2022 Edition, Cabrera et al,
2021). As shown in the table, the turnover has
increased over the 3 periods but is not too
impressive with 0.22 in year 1, 0.25 in year 2,
and 0.31 in year 3.
8. Capital intensity ratio - measures the
efficiency of the firm to generate. A lower
ratio is preferred. As shown in the table, the
ratio has improved with a 4,90 amount in assets
for 1 pesos in sale in year 1, 4.41 in year 2,
and 3.64 in year 3. However, these are not
impressive improvements as the firm is
dependent wholly on the resources rather than
the combination of labor and other activities
that will generate revenues.
Debt management ratios
Debt management ratios show how the firm has
financed its assets as well as the firm’s ability to
153
repay its long-term debt. (Financial Management 2021-2022
Edition, Cabrera et al, 2021).
1. Debt ratio - shows the proportion of all assets
that are financed with debt. (Financial
2021). Higher debt ratio indicates higher
credit risk. As shown in the table, the debt
financing declines over the 3 periods which
means that the entity can acquire debt as it
presents lower credit risk throughout the 3
periods.
2. Equity ratio - indicates the proportion of
assets provided by the partners. (Financial
2021). Conversely with debt ratio, higher
equity ratio provides lower credit risk
notwithstanding other indicators. Equity ratio
improves over the 3 periods.
3. Debt to equity ratio - measures debt relative
to amounts of resources provided by owners.
Cabrera et al, 2021). Lower debt to equity
ratio is preferred. The ratio improves over the
3 periods.
154
4. Fixed asset to long term liabilities - reflects
extent of investment in long-term assets
financed from long-term debt. (Financial
2021). It is to be noted that the right-of-use
asset is financed by lease liability. A higher
ratio is preferred. This ratio has improved
throughout the 3 periods.
5. Fixed asset to equity - measures the proportion
of partners’ capital invested in fixed assets.
Cabrera et al, 2021). A lower ratio is
preferred. This ratio has improved throughout
the 3 periods.
6. Time interest earned - measures how much time
interest expense is covered by operating
profit. (Financial Management 2021-2022
Edition, Cabrera et al, 2021). In year 1,
operating profit can cover up to 4,788.46 pesos
for each peso of interest expense. The sudden
aggressive decline in the ratio between year 1
and year 2 is caused by the recognition of
lease-related interest. In year 2, 32.01 pesos
of operating profit can cover each peso of
155
interest expense. In year 3, 40.49 pesos of
operating profit can cover each peso of
interest expense.
Profitability ratios
Profitability ratios show how profitable the firm
is operating and utilizing its assets. (Financial
1. Gross profit margin - measures the profit
generated after consideration of the cost of
the product sold. (Financial Management
2021-2022 Edition, Cabrera et al, 2021). A
higher gross profit margin is preferred. This
indicates how well the management has
implemented its markup in its sold product or
how well the management uses its asset by not
creating more costs. No significant changes
over the covered periods except year 3 which is
due to the selling price, take note that no
changes in cost of the operating items. The
change is not attributed to mismanagement of
costs.
2. Operating profit margin - measures profit
generated after considering operating costs.
156
Cabrera et al, 2021). The increase between year
1 and year 2 is due to the lowering of
marketing costs which is 55,000 pesos in year 1
but 15,000 in year 2. The aggressive decline in
year 3 is due to the increase in salary of
employees and the employment of another website
manager. The variability of freight costs and
some aspects of salary expenses do not affect
the ratio since its variability is directly
related to the sale.
3. Net profit margin - measures profit generated
after considering all expenses and revenues.
Cabrera et al, 2021). This includes the income
tax expense which is directly related to the
amount of earnings before taxes. The same
explanation of affecting factors is in the
operating profit margin.
4. Cash flow margin - measures the ability of the
firm to translate sales to cash. (Financial
2021). All sales are cash sales in this
proposed business; however, included in the
consideration for this ratio is the subsequent
157
use of those cash receipts. The decline in year
2 is due to the increase in purchase
requirements, all purchases are made out of
cash and no liability is recognized.
5. Return on asset - measures the overall
efficiency of the firm in managing assets and
generating profits. (Financial Management
2021-2022 Edition, Cabrera et al, 2021). As
shown in the table, there is an increase of
0.50 in year 1 to year 2 and 0.95 in year 2 to
year 3. The same explanation in the above
margins can be applied in this ratio. The
figures state that for every peso that is asset
invested, there is an equivalent profit of
5.58% in year 1, 5.98% in year 2, and 6.93% in
year 3.
6. Return on equity - measures the rate of return
on resources provided by owners. (Financial
2021). Basically, this is interrelated with
ROA, and therefore the explanation presented in
ROA will serve as an explanation for this ratio
since the financing on resources is not debt
heavy.
158
7. Return on current assets - measures the
profitability of current assets invested.
Cabrera et al, 2021). As shown in the table,
the rate declines over the 3 periods but this
should not be a problem. In the vertical
analysis, the resources and its claim declines
over the 3 periods yet the sale is increasing
aggressively over the same periods. This is the
primary reason why the rate is declining.
8. Return per turnover of current assets - shows
the profitability of each turnover of current
assets. (Financial Management 2021-2022
Edition, Cabrera et al, 2021). The rate of
return is converted into turnover, which means
for each movement of current assets there is
equivalent 0.48 sales generated for year 1,
0.47 in year 2, and 0.43 in year 3.
Cash flow analysis
Primarily, cash flow analysis is the analysis of
cash flow statements. However, only 3 components are to
be explained since other matters were already explained
in the notes to financial statements and other ratios. In
this subsection, financial liquidity, financial
159
flexibility, and free cash flow are presented. As shown
in the table, the financial liquidity of the proposed
business declines from year 1 to year 2 due to the large
purchase schedule in the latter year but has recovered
from year 2 to year 3. The financial flexibility of the
firm experiences the same trend and growth with financial
liquidity, this is so because cash or liquid assets are
one of the major dominating items of total assets. In
other words, the firm is cash-heavy. The free cash flow
of the firm in year 1 connotes a negative impression,
this is so because of extensive capital expenditure but
recovered in year 2 and aggressively increased in year 3.
Investment recovery
Payback period refers to the length before an
investment is recovered. (Management Services 2021
Edition, Agamata, 2021). The focus of payback period is
liquidity of return of investment. Referring to Table
4.20, the payback period is 6 years, 11 months, and 4
days which concludes that this proposed business is of a
long-term nature. However, it is to be noted that there
are annual salaries totaling 1,500,000 pesos. This is
deducted from the year 1 and 2 calculations. Using other
inputs from other ratios, it is concluded that this
business is capital heavy and does not consider debt
160
financing which is the obvious reason why the payback
period is longer than usual. Inventoriable depreciation
contributes a huge value to the sale since the useful
life is 9 years.
There are drawbacks for payback period. It is to be
noted that the cash available at the end of the year
exceeds the net cash operating cost of the following
year, meaning that there is a lot of cash for this
business that are idle. It is to be noted also that the
proponents want to show only the effects of revenue and
not income, which is why the excess cash is not invested.
Those are few examples of inefficiency of payback period
because it focuses only to the liquidity of the return.
Since the payback of this company is too lengthy, the
solution that the proponent can do is to make all excess
funds a drawing to all partners; in that way, the payback
period will be 5.3 max.
161
Table 4.20. Payback period of the firm
PAYBACK PERIOD
Covering 3 projected periods
Years Net Cash Inflow Amounts to be Recovered Count Conversion
Inital Investment 19,286,725.00

Year 1 1,812,883.81 15,973,841.19 1 1 year
Year 2 1,953,576.07 12,520,265.12 1 1 year
4 years, 11 months, 4
Year 3 2,236,434.43 4.927604836
days
6 years, 11 months, 4
Total
days
162
ACCOUNTING POLICIES, MECHANISM, AND INTERNAL CONTROL
This subsection is a residual discussion that aims
to answer the “how” of financial accounting and record
keeping. Accounting policies are important for PFRS
accounting, it indicates what principles the entity is
following and implementing. Mechanism of record keeping
specially for cost of goods sold recognition is important
for cut-off. Those are discussed simultaneously with
internal control implementation.
The following records are maintained by the entity:
1. Sales record;
2. Spreadsheet for sales journal and ledger;
3. Inventory record;
4. Spreadsheet for purchase journal, inventory
transfers, and cost of goods sold;
5. Spreadsheet for record of books rent out and
their time of use;
6. Spreadsheet for noncash adjustments;
7. Disbursements record other than purchases; and
8. General journal and its spreadsheet
The spreadsheets pertains to a software copy of
records and are to be managed by partners alone.
163
The following internal control design is used by
the entity:
Figure 4.1. Processing sales
Figure 4.1 shows the design of processing sales
which starts from customer notifying the entity through
the website for its order. This is followed by
confirmation of their order, an activity that involves
identifying the customer and checking the cash balance of
an online bank platform in case of fraud or hacking of
the website. Once the order is confirmed, the entity will
send confirmation notice to the customer and prepare two
copies of sales order to be send to the packagers and to
the bookkeeper. It is the web manager who will fill the
164
content of sales order. The bookkeeper will not record
any sales if only the sales order is present on his desk.
To confirm a sales entry, he needs both sales order and
sales invoice. Once packaging is done, a copy of sales
order is attached to the package and send it to the
general manager or any partners available for the job.
The package is checked for its sufficiency, matching the
content of sales order and the package. The inventory
record, in the section of books for rent, a hard copy, is
then updated and the package is ship to the customer once
checking is finished. The one who check the package will
make a sales invoice to be send to the bookkeeper and
make sale entry to the sales journal. The bookkeeper,
upon receipt of sales invoice along with it matched sales
order will then make a sale entry in the spreadsheet for
sales, a soft copy. If the sale corresponds with the
packages that are rentals, specified in the sales order
is the time to which the book is already out; upon such
notice, the bookkeeper will indicate the time in the
spreadsheet for record of books for rent in order to
start the depreciation of such book. At the end of the
year, the finance manager will match sales record and
spreadsheet for sales, consolidate all sales invoice and
its matching sales order, and ascertain the count of
165
sales. If there is a difference, the finance manager is
then required to check the online bank platform, checking
its record. Once the sales is ascertained, the
spreadsheet is updated and locked.
Key aspects in the design:
1. Sales orders are prepared by web managers;
2. Sale invoice is prepared by the general manager
(or any partners available);
3. Sales journal and inventory record are a hard
copy maintained by the general manager (or any
partners available); and
4. Spreadsheet for sales is a softcopy maintained
by the bookkeeper and ascertained by finance
manager.
166
Figure 4.3. Processing return of books for rent
Figure 4.2 shows the process of shipping the
reviewer books once the textbooks are return. The
customer needs to notify the entity that they will return
the books. If the term is already over, the entity will
notify the customer through website of gmail they use to
register. Once the textbooks are already received, the
general manager together with packager who is idle during
that time will measure any damages and the general
manager will decide if it requires additional payment for
any damages. He will then prepare three copies of
confirmation notice that will be send to the bookkeeper
for indicating the time it is return or for complete
167
writeoff due to substantial damage and recognition of
cost of goods sold for reviewer books to be shipped out,
to the packagers for preparing the reviewer books, and to
his desk. He will also notify the web manager who then
notifies the customer through the web. Upon completion of
packaging and shipment, he will prepare a shipment notice
attached to the confirmation notice he left in his desk
to be send to the desk of procurement manager who will
then update the inventory record, in the section of books
for rent and books for sale.
Key aspects of this design:
1. Confirmation notices are prepared only by
general manager (or partners available);
2. Shipment notice is prepared by general manager;
3. Spreadsheets for record of book for rent and
spreadsheets for purchase jornal, inventory
transfers, and cost of goods sold are updated
by bookkeeper; and
4. Inventory record is updated by procurement
manager or through his purchase office.
168
Figure 4.3. Purchase and inventory checking
Figure 4.3 shows the design of processing purchase
and inventory balance keeping. Purchase officer is
required to check the levels of inventory, he is also
required to compare the inventory record and the actual
counts of inventories. If there are difference between
inventory record and the actual count, this is resolved
together with the procurement manager who is actually the
holder of the inventory record. If inventory level is
already at depleted state, he will prepare two copies of
purchase order to be send to desk of procurement manager
and to the supplier. The procurement manager will then
make a receiving report and send it to the purchase order
169
once the goods are received. The first copy of purchase
order that is send to the procurement manager is then
forwarded to finance manager once the second copy of
purchase order is received by supplier through
notification. The finance manager will then make a cash
transfer through the bank and order the bookkeeper to
make a purchase entry in the spreadsheet. Upon receipt of
goods, the purchase officer will ascertain if goods are
not defective and match with the receiving report. After
checking, he will then forward the receiving report to
the procurement manager. The procurement manager will
contact the supplier for any returns of defective product
and get notification if the supplier actually receive the
payment. He then updates the inventory record. At year
end, the finance manager will match the inventory record
and spreadsheet for purchase journal, inventory
transfers, and cost of goods sold. He will consolidate
all purchase orders and receiving reports for the purpose
of ascertaining the cost of goods sold. If there are
difference between these records, he may check all
records available including the online bank records. Once
the cost of goods sold are ascertained, the spreadsheet
is updated and locked.
Key aspects of the design:
170
1. Purchase orders are prepared only by purchase
officer or procurement manager in absence of
the former;
2. Receiving reports are prepared only by
procurement manager;
3. Cash payment is only certify by finance
manager; and
4. All effects of transaction is both recorded by
bookkeeper and procurement manager through his
purchase order.
Figure 4.4. Year-end activities
171
Figure 4.4 shows the flow of activities during the
year end. This is accomplished by finance manager with
the help of bookkeeper. As observed with other internal
control design, there are always an assurance that the
hard copy will match the soft copy. However, there will
be matching activities and reconciliation in order to
make sure that both copies are indeed reconciled.
Summary of other financial assumptions
Aside from those that are already discussed in the
first part of this section, the following assumptions are
implicitly applied in the business:
1. The proposed business is following full PFRS
since it will register in the SEC;
2. All sales are cash sales;
3. All purchases are cash purchases;
4. All obligations are paid except for dues to
government, for they have an schedule;
5. Freight in for the supplies are already innate
within those figures of “cost per book”;
6. Percentage tax is applied because gross
receipts exceed the threshold; and
7. The selling price assumed for the packages is
generally higher than the price of one book but
lower than the price of two books.
172
CHAPTER V
SOCIO-ECONOMIC STUDY
The topic in this chapter is focused on the
advantages that society and individuals will get from the
Book-a-book. The advantages of the services for society,
the environment, and the economy will be particularly
mentioned.
SOCIAL BENEFITS
All of the costs associated with attending
accounting classes can be overwhelming for accounting
students and aspiring CPAs. The establishment of
book-a-Book will enable them in their studies and reviews
by reducing one of their costs through the establishment
of the textbook rental service. The book-a-Book rental
service helps students to rent textbooks through the
website and provides learners with a cost-effective
ordering system. Learners no longer have to waste time
going from store to store to get their subject course
materials. They can then order the books they want by
paying the rental fee, and the books will be delivered to
their door within the time frame specified. There is also
173
a book search opinion that allows the learners to search
for books by title or author name making it very easy to
find the book. Furthermore, after renting textbooks,
book-a-Book provides reviewers for the students, allowing
them to make consistent progress in their accounting
studies. There are numerous options and packages
available that will allow students to rent the books they
want.
ENVIRONMENTAL BENEFITS
The book-a-Book is friendly to the environment. One
of the major benefits of renting a book is its
environmental friendliness. Learners can conserve
resources by renting books rather than buying them. Each
semester, several books are consumed by a group of
students, reducing the need for reprinting to some large
extent. This resulted in less paper being used and trees
being cut down. It will also reduce the amount of
electricity and water that factories consume. By choosing
to rent textbooks rather than buying new ones, learners
can prevent stress on the environment and save thousands
of trees, all of which helped to save the environment.
174
ECONOMIC BENEFITS
Renting books enables students to have a more
convenient, affordable, and enjoyable experience because
studying accountancy and earning a license is becoming
more expensive. Through the availability of inexpensive
reading material, the textbook rental service will aid in
the reduction of book piracy. Furthermore, household
consumption keeps the economy operating and ensures that
workers are paid fairly and appropriately, thus allowing
them to take care of their own and their families needs.
Through the company's income, government programs are
funded and taxes are remitted by the business. Moreover,
taxes and permits paid by businesses benefit the
government because they generate money that can be used
to support local programs and expenses. It increases the
standard of living for the employees of the company
allowing them to have privileges and salaries that
improve their quality of life as a recompose for their
efforts and service in the business.
175
BIBLIOGRAPHY
Business License and Mayor’s Permit. Retrieved on
November 26, 2021
https://www.naga.gov.ph/invest/doing-business-2/business-
license-mayors-permit-2/
How to Get a Barangay Clearance. Retrieved on November
26, 2021
https://faq.ph/how-to-get-a-barangay-clearance-in-the-phi
lippines/
How to Register a Business Partnership in BIR?
Retrieved on November 26, 2021
https://philpad.com/register-business-bir/#How_to_Registe
r_a_Business_Partnership_in_BIR
How to Register - Republic of the Philippines Social
Security System. Retrieved on November 26, 2021
https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=empl
oyerregister
Requirements, Procedures, and Fee on Registration on DTI.
176
https://datastiq.com/how-to-register-business-name-with-d
ti/
Requirements, Procedures, and Fee on Registration on SEC.
https://www.sec.gov.ph/company/primary-registration-2/pro
cessing-of-applications-for-partnerships/
Cabrera, Ma. E., et al, Financial Management: Principles
and Applications, 2021-2022 Edition, GIC Enterprise &
Co., Inc.
Agamata, F., Management Services: A Comprehensive Guide,
2021 Edition, GIC Enterprise & Co., Inc.
PFRS adapted by FSRSC based on the IFRS issued by ISSB,
2022.
177
Appendices
Appendix A
Survey Questionnaire(Google forms)
178
179
180
181
182
183
184
185
186
187
188
Appendix B
Survey Questionnaire Face to Face
189
190
191
192
193
194
195
Appendix C
Documentation for Face-to-Face Survey
196
197
Appendix D
Partnership Agreement
This agreement of General Partnership is made
effective as of January 01, 2023, by and between the
following parties:
LEA B. BERJA
Zone 1, San Juan, Pili, Camarines Sur, 4418
JAMES B. CANTORNE
Zone 1, Sta. Cruz (Quipayo), Calabanga, Camarines Sur,
4405
MARGILYN C. DACUYA
Zone 3, San Roque, Canaman, Camarines Sur, 4402
EMILY B. MENDEZ
Zone 7, San Rafael, Cararayan, Naga City, Camarines Sur,
4400
RITCHIE ED REY
#733 Zone-7 Dugcal Camaligan, Camarines Sur, 4401
IT IS HEREBY AGREED:
1. The partners voluntarily associate themselves together
as general partners for the purpose of conducting a
rental service, and other types of business that may be
198
agreed upon in the future. The profits and losses are
shared equally.
2. The partnership shall be conducted under the name book
A Book Company and maintain its office at J. Hernandez
Avenue, Naga City.
3. Partners have equal rights, responsibilities, and
control of the operation of the business particularly in
making economic decisions. If there are any variations in
making decisions, a majority vote should be followed.
Partners shall provide their full effort in conducting
the business. All partners will receive an annual
salary/withdrawal of 120,000 pesos each.
4. The capital requirement of each partner are the
following:
Ratio Contribution
Berja, Lea B. 20% 3,574,553.33
Cantorne, James 20% 3,574,553.33

B.
Dacuya, Margilyn 20% 3,574,553.33

C.
Mendez, Emily B. 20% 3,574,553.33
Rey, Ritchie Ed 20% 3,574,553.33
Total 100% 17,872,766.67

contribution
199
5. IN WITNESS WHEREOF, the partners hereto have caused
this agreement to be duly executed as of the day and year
set forth above,
BERJA, LEA
CANTORNE, JAMES
DACUYA, MARGILYN
MENDEZ, EMILY
REY, RITCHIE ED
200
Appendix E
CURRICULUM VITAE
Lea B. Berja
Zone 1, San Juan, Pili
Camarines Sur
lea.berja@unc.edu.ph
09129941410
SUMMARY
● 4th year of Bachelor of Science in

Accountancy from the University of Nueva
Caceres;
● Accomplished certificates from Coursera;
● Skilled in accounting, information
technology and customer
service;Detailed-oriented, enthusiastic,
dependable and hard-working;
● Excellent in marketing skills
Company.
● Organization skills, Customer
Service skills, flexible, and can
work under time pressure.
SKILLS AND ABILITIES
Accounting Skills
● can execute some aspects of the accounting
cycle with speed and efficiency
● efficient transaction recording in compliance
with applicable norms
● can successfully develop cost projections and
business plans
● keeping track of the company's finances,
expenses, and budgets
● can generate financial statements
Communication Skills
● can interpret information provided by others
● can choose the appropriate language and words
201
to employ in a conversation
● ability to communicate all of one's
views, whether they be positive or negative
depending on the circumstance, without
upsetting anybody.
EDUCATION
TERTIARY

Jaime Hernandez Avenue, Naga, Camarines
Sur
SENIOR HIGH SCHOOL
AMA Computer College - Naga Branch

Naga City, Philippines
Batch 2019
JUNIOR HIGH SCHOOL
Pili National High School

Pili Camarines Sur, Philippines
Batch 2013
PRIMARY
Pili Central High School

Pili Camarines Sur, Philippines
Batch 2013
REFERENCES
Jael Paredes
AMA Computer College - Naga Branch | Instructor
09267442321
jaelaparedes@gmail.com
Babylyn C. Palo
AMA Computer College - Naga Branch | Instructor
babylyncapin@gmail.com
09706676724
Maria Carla Manago
202
College of Business and Accountancy | Faculty
mariacarla.manago@unc.edu.ph
09396981745
James B. Cantorne
Zone 1, Sta. Cruz (Quipayo), Calabanga,
Camarines Sur, 4405
james.cantorne@unc.edu.ph
09685301162
SUMMARY

Caceres;
technology and customer service;
Detailed-oriented, enthusiastic, dependable
and hard-working;
● Organization and leadership
skills, Customer Service skills,
flexible, and can work under time
pressure.
Accounting Skills
● can execute all aspects of the accounting cycle
with speed and efficiency
business plans
Accounting Information System Skills

● can use computerized systems to collect, store,
and process accounting transactions
203
can use accurate, trustworthy, and effective
accounting information systems
upsetting anybody.
● Approachable and easy to talk to with a
good sense of humor.
TRAINING/CERTIFICATION
Academic Research Foundation: Quantitative
LinkedIn Learning
Accounting Foundations
LinkedIn Learning
EDUCATION
TERTIARY

Sur
SENIOR HIGH SCHOOL
Camarines Sur National High School

Batch 2019
JUNIOR HIGH SCHOOL

Batch 2013
PRIMARY
Sta. Cruz Elementary School

Calabanga, Camarines Sur, Philippines
Batch 2013
204
ACHIEVEMENTS
March 2019
Graduated with Honor
April 2019
Accountancy Business and Management
(ABM)
REFERENCES
Mary Grace Joven

Camarines Sur National High School | Faculty
majoven2020@gmail.com
09223642733
Frank Porcil, CPA

Bicol State College Of Applied Science and
Technology | Accounting
fporcil@gmail.com
09985731732
Maria Carla Manago

09396981745
MARGILYN C. DACUYA
Zone 3, San Roque, Canaman,
Camarines Sur, 4402
margilyn.dacuya@unc.edu.ph
09468110832
SUMMARY

Caceres;
● Experienced in conducting accounting research and
205
feasibility studies, including survey development,
data collection, organization, and analysis.
● Participating in a Professional Employment Program
(PEP)
● Flexible, team-oriented, eager to learn,
goal-oriented, and trustworthy
Accounting Skills
● Able to complete the accounting cycle process,
prepare financial statements and projected
business plans.
● Able to analyze and interpret data.
upsetting anybody.
LinkedIn Learning
Accounting Foundations
LinkedIn Learning
Foundations: Data, Data, Everywhere
Coursera Course Certificate
Ask Questions to Make Data-Driven Decisions
206
EDUCATION
TERTIARY

Sur
SENIOR HIGH SCHOOL

Batch 2019
JUNIOR HIGH SCHOOL

Batch 2013
PRIMARY
Casuray Elementary School

Magarao, Camarines Sur, Philippines
Batch 2013
ACHIEVEMENTS
March 2019
April 2019
(ABM)
REFERENCES
Mary Grace Joven

09223642733
Frank Porcil, CPA

207
fporcil@gmail.com
09985731732
Maria Carla Manago

09396981745
EMILY B. MENDEZ
Zone 7, San Rafael, Cararayan, Naga City,
Camarines Sur, 4400
emily.mendez@unc.edu.ph
09916177535
SUMMARY
● A responsible graduating student of Bachelor of

Science in Accountancy from University of Nueva
Caceres
● Experienced in performing accounting research and
feasibility study from developing surveys,
collecting, organizing and analyzing data
● Experienced in working in various offices in Naga
City during summer job
● Taking Professional Employment Program (PEP)
● National Discipline Awardee by AY Foundation
● Flexible, capable of working in a team, willing to
learn, goal-oriented, and trustworthy
Accounting Skills
● Able to complete the accounting cycle process,
prepare financial statements and projected business
plan.
● Able to analyze and interpret data.
Organizational Skills
● Able to gather information relevant from our
respondents and came up with an efficient and
effective strategy for our business proposal.
208
● Able to manage time effectively.
● Actively participate in group discussions and
meetings
● Share my ideas in our research and feasibility study
● Was able to deliver them to the panelists'
Research Skills
● Accomplished the research entitled “Factors
Influencing Customer Trust in Online Banking and
E-wallets in University of Nueva Caceres, Naga
City”, 2022.
Professional Employment Program

January 2022
Inventories: Recognition and Measurement

October 2022
REAL EXCELLENCE ONLINE
Excel for Accountants

March 2022
LinkedIn Certificate

Academic Research Foundations: Quantitative
September 2021
LinkedIn Certificate
DIGITALLY READY! PADAGOS: Investing Your Future
into the Digital World
May 2021
Mindshift: Break Through Obstacles to Learning

and Discover Your Hidden Potential
December 2020
The Practice of Accountancy Profession

October 2020
National Service Training Program

May 2020
209
EDUCATION
TERTIARY

Jaime Hernandez Avenue, Naga, Camarines Sur
● Naga City Scholar
SENIOR HIGH SCHOOL

Batch 2019
● With Honor
● AY Foundation National Discipline Awardee
JUNIOR HIGH SCHOOL
Cararayan National High School

Naga City, Camarines Sur Philippines
Batch 2017
● With Honor
Signal Village National High School

Taguig City, Philipines
Year 2016
● With Honor
PRIMARY
Buluang Elementary School

Baao, Camarines Sur, Philippines
Batch 2012
● With Honor
REFERENCES
Charlene Estelle Salvador

Workforce Development Trainer
University of Nueva Caceres | Career Center
charlene.salvador@unc.edu.ph
09121144329
210
Mary Grace Joven
09223642733
Maria Carla Manago

09396981745
Ritchie Ed K. Rey
#733 Zone-7 Dugcal Camaligan
Camarines Sur, 4401
ritchieed.rey@unc.edu.ph
09091262505
SUMMARY

Caceres;
technology and customer
service;Detailed-oriented, enthusiastic,
dependable and hard-working;
● Excellent in marketing skills
Company.
● Organization and leadership
skills, Customer Service skills,
flexible, and can work under time
pressure.
Accounting Skills
● can execute all aspects of the accounting cycle
with speed and efficiency
211
business plans

upsetting anybody.
LinkedIn Learning
EDUCATION
TERTIARY

Sur
SENIOR HIGH SCHOOL

Batch 2019
JUNIOR HIGH SCHOOL

Batch 2013
212
PRIMARY
Naga Central School I

Batch 2013
ACHIEVEMENTS
March 2019
April 2019
(ABM)
REFERENCES
Mary Grace Joven

09223642733
Frank Porcil, CPA

fporcil@gmail.com
09985731732
Maria Carla Manago

09396981745
213

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book-a-Book

“Can’t afford, We got You”

A Feasibility Study Presented to

December 20, 2022

This Feasibility Study entitled “book a Book”,

MARIA CARLA R. MAÑAGO, CPA

AILEEN MENDOZA, CPA

KATHLEEN A. MARTINEZ JACELYN SALVAMANTE, MM

Accepted and approved in partial fulfillment of the

NORA ELIZABETH F. MANIQUIZ, PhD., CPA

COLLEGE OF BUSINESS AND ACCOUNTANCY

This is to certify that this Feasibility Study

NORA ELIZABETH F. MANIQUIZ, PhD., CPA

The proponents extended their deepest gratitude to

the people who offered their assistance for the

accomplishment of the feasibility study. It will be

impossible to complete this study without the effort and

guidance of the following:

Their feasibility study adviser, Maria Carla R.

Mañago, CPA, who allotted her time, shared her knowledge

through suggestions and offered guidance to the

researchers for the success of the study.

The panelists, Ma’am Jacelyn Salvante, MM, Ma’am

Aileen Mendoza, CPA, and Ma’am Kathleen A. Martinez, who

shared their time to assess the researchers’ project and

gave recommendations on how to yield the best outcome.

To the respondents, for their kind, generous and

active support, patience, and deep understanding in

answering the online and on-site survey questionnaire,

without them, this feasibility study will not be made

Their families who were always there to give their

full moral and financial support.

Their colleagues, who uplifted the researchers'

Above all, the researchers expressed their

sincerest appreciation to God Almighty. His presence

always enlightens the researchers' minds and gives hope

and strength to achieve the study's goals.

This feasibility study is entirely devoted to our

wonderful parents, who have showered us with blessings,

resources, and wisdom in any way they can. This study

would not have been accomplished without their

We also dedicate this study to our professors for

their constant assistance and advice in completing the

feasibility study successfully.

And above all, to our Almighty God, with His

unending love, motivation, and wisdom that He shared to

accomplish this study that somehow in the very near

future may contribute to help those proponents who will

be making the feasibility study.

Pages of Tables and Figures

The name of the business is the book A Book which

is where you can rent a book.

LOCATION OF THE BUSINESS

The book A Book is an online shop. Hence, it will

be accessible in a virtual environment like a website, on

its domain -- bookabook022.wixsite.com/book-a-book.

The entity will also establish a physical office

for its administrative processes and transactions needed

for the service. The physical office will be located at

J. Hernandez Ave., Naga City, Camarines Sur.

The book-a-Book is an online shop exclusive only for

accounting majors students, CPA candidates, and CPA

passers, that may access accounting books, but have

difficulty acquiring books in general.

The target market of the business are those

accountancy students, CPA candidates, and CPA passers.