SANIATA

Presented to the Accountancy Department

De La Salle University

In partial fulfillment of

the course requirement in (ACCCOB1)

C35A

Group No. 7

Gelacio, Julian

Lomboy, Lei

Jacob, Athaiah

To be submitted on:

July 6, 2022

Submitted to:

Ms. Maria Victoria Baarde

I. Background of Partnership Business

A. Name of Partnership

Origin of the Name

“Saniata” is a word from Ilocano that translates to “jewel” or “precious stone”. Many

Filipinos are often enamored by the beauty and exoticness that foreign cultures often

have, so much that they will often forget the beauty of their own culture. At times, they

will even be ashamed that their culture does not appear to be as beautiful compared to

other cultures. However, what Saniata aims to show is that Filipino culture, like all others

around the world, is a very precious and valuable thing to have, much like a jewel.

Inspiration of the Logo

As was previously mentioned, Saniata believes that Filipino culture is one of the most

precious “crown jewels” of the country, and should therefore be treasured and highly

valued. Jewels, especially diamonds, are often formed from several thousand years of

pressure. This represents the Filipino value of resilience and perseverance, as no matter

what the circumstances are, they will continue to remain strong even in the face of

hardship.

B. Names, addresses, and classes of partners

Name Address Class

Gelacio, Julian Makati, Metro Manila General Partner

 Lomboy, Lei Baron Makati, Metro Manila General Partner

Jacob, Athaiah Silang, Cavite General Partner

C. Effective date of contract

The contract will become effective immediately on August 20, 2022. This ensures

that all partners are given a sufficient time period to plan and strategize for the business.

This includes arranging the needed documents, deciding on the company structure, and

pooling together the investments. It will also ensure that the terms and conditions have

been mutually agreed upon by all partners. This will ensure that the business will

succeed and that the relations between partners are transparent.

D. Purpose and principal place of the partnership

Profit

The business’s revenue will be drawn from the buying and selling of finished

products that have been created locally and sustainably. The items to be sold are

clothing, bags, masks, accessories, and metal straw sets that can be purchased through

both offline stores and the official Saniata website.

People

Filipinos often patronize and have great appreciation for foreign cultures,

especially those of the West and of East Asia. However, they sometimes fail to notice

the beauty and goodness of their own culture, and sometimes negatively compare them

to the cultures they idolize. Local brands tend to have more difficulty in being able to

compete with foreign brands as their products are often perceived as being of lesser
 quality. During the COVID-19 pandemic, many local brands were affected, with some

closing down as a result of losses or not having the proper resources to sustain

themselves. One of Saniata’s aims is to encourage support for local brands as well as

show other people what Filipino culture can offer.

Planet

Protecting the planet and its natural resources is part of Saniata’s advocacy. To

fulfill this, the products sold will be made locally and through sustainable means. More

and more Filipinos are becoming interested in living more sustainably, and Saniata is

aiming to further push the demand for more sustainable products. The business’

activities can help in spreading information and ways on how one can live more

sustainably, encouraging others to start incorporatingit into their lives.

Place of Business

Saniata will make the products available for purchase both online and offline. The

official website can be used in order for customers to order items. Information and

photos of the products will be posted on the website so that the customers can have

complete information on the product they wish to purchase. The website will also show

essential information about the company, such as the owners, methods of contacting,

and its mission and vision. A space for an offline store will be located in Glorietta 4,

Ayala Center, and various pop-up stores will be established to introduce Saniata’s

products to a larger audience.

E. Investments from each partner

 For the company to operate and launch, all general partners have decided to

invest individually through cash assets to ensure that the business operations and the

equipment needed for them are fully invested in. The table below shows both the cash

and non-cash investments that all the partners have made for the business. The 400,000

invested by Julian Gelacio will be used for furniture and fixtures, and the 800,000

invested by Lei Baron Lomboy will be used for purchasing a transport truck to purchase

all products from our local suppliers. The total cash investment by all partners is PHP

4,650,000, with the total non-cash investment being PHP 1,200,000. This results in a

total investment of PHP 5,850,000.

Name of Partner Cash Investment Non-Cash Total Investment

Investment

Julian Gelacio 1,500,000 400,000 1,900,000

Lei Baron Lomboy 1,200,000 800,000 2,000,000

Athaiah Jacob 1,950,000 - 1,950,000

Total 4,650,000 1,200,000 5,850,000

F. Rights and Duties for each of the partners

These are the following rights and duties that each of the partners have agreed

to for the business. All partners are expected to follow and comply with these elements,

on the basis of the Civil Code.

A. All partners equally the same amount of decision making and weight in their

choices for the business in order to operate it.

 B. Any events or activities that revolve around the business should be done in order

to benefit the busiess

C. Partners should provide honest information and provide accurate numbers in all

statements.

D. All partners are allowed access to the books that provide any information of the

business health.

E. The partners have equal votes in all decision making for the business

G. Allocation and sharing of profits and losses

The partners have decided to distributing 20% interest on the original capital. The

monthly salaries for all 3 partners will amount to PHP 2,000,000. The remaining balance

of net profits and losses will be equally shared among all partners.

H. Conditions under which partners can withdraw money and assets

Partners have permission to withdraw assets and money under the following

conditions that are stated below:

● After a four months’ notice to all partners

○ Partner can withdraw cash from the business after 6 months into the

business, only when the other partners have agreed to it.

● Withdrawal maximum of 30% cash with own interest.

○ A partner can withdraw up to 30% of cash without the notice of the

partners.

● Withdrawal of non-cash assets:

○ In regards to the withdrawal of non-cash assets from the business, it must

be done with consent of all the partners.

I. Manner of keeping the books of accounts

The management of the partnership books should be faithful, relevant, and an

accurate representation of the business. The manner of keeping the books of accounts

are as follows:

1. The accounting manager must record and code all transactions into Microsoft

Excel

2. The books of accounts are to be kept at the main business location, alongside

other supporting documents (e.g. receipts and notes)

3. All books and the documents will be held for 10 years.

4. Quarterly preparations of financial statements will be done to ensure that

partners will have an understanding of the business

5. The books of the business will be printed out and submitted to the Bureau of

Internal Revenue at the end of each year.

J. Method of decision-making such as causes for dissolution

Each of the partners have equal governing rights to the business’ operations, and

all will play a role in decision-making. If a new partner is to be admitted into the

business, all of the partners will have an equal vote on whether to admit the new partner

or not. If the new partner is allowed into the partnership, all partners will create and sign

a new contract. The partnership will be dissolved if one of the partners is confirmed to be

unable to comply with the terms and conditions of the contract. Another cause for the

partnership to be dissolved is if a partner withdraws or retires.

K. The provision for arbitration in settling disputes, etc.

In the case of a conflict or a dispute between partners in regards to business

decisions, the partners will seek advice from a consultant or a mediator. This can help in
 giving a clearer understanding of the situation as well as what steps should be taken in

order to solve it. Each of the business partners should present their perspective in a

clear manner, as well as proper evidence in order to support said perspective. The

consultant or mediator will give out their verdict, and collect the fees from the business’s

capital.

L. Detailed description of the product or service idea

The said products also display aspects of Filipino culture as they are made by

local vendors. The business of Saniata will be primarily focused in the merchandising

sector. This will be done through showcasing and selling clothing, bags, accessories,

and other items online and offline. All of the items will be created locally and by local

vendors and small businesses.

Offline stores for Saniata will operate from 8AM to 7PM every Monday to Saturday. On

Sunday, the business hours will be from 11AM to 7PM. To ensure the health and safety

of both staff and customers, health protocols will be followed strictly as recommended by

the government. This means that temperatures will be checked and no one is allowed to

enter the store unless they are wearing a face mask and face shield. The number of

people going in will be restricted to 15 people at a time.

The items and the planned prices are dictated in the table below:

Item Planned Price

Shirt PHP 400

Pants PHP 500

 Skirt PHP 200

Dress PHP 600

Bag PHP 800

Pouch PHP 500

Necklace PHP 150

Earrings PHP 200

Bracelet PHP 150

Metal Straw Sets PHP 150

There will be no usage of plastic, as part of the advocacy of the business . Customers

can also turn in reusable and recyclable items (e.g. glass/plastic bottles, tetrapaks) to

the business in exchange for a 20% discount on their purchases.

II. Partnership Strategic Planning

A. Vision for Saniata

A sustainable and ethical company that showcases and promotes the culture of the

Philippines and a sustainable lifestyle.

B. Mission for Saniata

Expressing pride in our culture through eco-friendly and sustainable products for the

good of the community.

C. Strategic objectives of the partnership business

i. Operational and Resources Objectives

- Provide and ensure strong relationships between stakeholders and suppliers

 - Provide accurate and realistic information on the business health and potential

for future decisions

ii. Customer Objectives

- Allow for a wide range of customers that want to support or transition into

sustainable and cultural items that support local businesses and workers.

- Raise awareness of the importance on local products and the importance of

supporting start up businesses that reflect the Filipino culture

iii. Sales and Revenue Objectives

- To strive for providing local products with opportunities to reach the masses of

the Filipino community while retaining on maximizing profits

- Utilize all opportunities as a way to increase profits while still protecting the

image and reputation of the local products

iv. Internal Objectives

- To practice CSR and provide employees with fair wages and treatment

- To include employees on certain decisions the company will make

v. Marketing Objectives

- To have a strong social media presence in order to spread awareness and

provide new marketing opportunities for local products

- To have a stronger online presence through our website as a way to benefit and

utilize the internet

D. PEST Analysis

Political Economic

● The 2022 elections have been a ● Government services are easier to

reason for instability in the country access

● Corruption in the government is quite ● The pandemic has greatly affected the

rampant. economy in a negative way.

Technical Social

● The use of social media to promote ● More and more young Filipinos are

small businesses is growing more and becoming interested in purchasing

more prominent sustainable products

● Higher preference for imported

products, such as those from Korea,

Japan, USA, etc.

● Political

1. Corruption in the Philippines - The Philippines was ranked 117th out of 180

countries, and given a low score of 33 out of 100 by Transparency International

(2021). Daily and civic life has been affected as a result of this rampant issue.

Some of Saniata’s business operations may be at risk if the issue continues to

persist.

2. 2022 elections - The Philippine elections have become a massive controversy

both nationally and internationally. Since there are no known plans for the

economy by the elected government, many businesses have begun to stop

investing in the Philippines.

● Economic

1. Government services - The Magna Carta for Micro, Small, and Medium

Enterprises was established by the government in order to assist and support

small local businesses in the country. Since Saniata wishes to help in improving
 the Filipino economy by openly displaying Filipino culture, this can help in

furthering our business efforts.

2. Pandemic’s effects - The Philippines was one of the many countries that was

affected by the pandemic. The country’s GDP growth contracted by 9.5% in 2020

(Laforga, 2021). The robust support from the government has helped, but many

people ended up losing their jobs and livelihoods. This can result in less

disposable income to be spent by people on Saniata’s products.

● Technical

1. Social media - Promoting one’s business has become much easier and cheaper

with the rise of social media. With millions of daily users every single day,

Saniata can use this as an advantage to promote its products and advocacies to

a wider audience.

● Social

1. Interest of Filipinos - According to a survey in 2021 (Valmonte), 9 out of 10

Filipinos have shown interest in buying more sustainable products. Since there is

a great demand for them to be sold in the country, Saniata can help fill that

demand and further encourage others to purchase sustainable products.

2. Higher preference for foreign brands - Kantar Worldpanel showed that the top

50 local brands only received 28% in shares, compared to 72% for global brands

(Rivas, 2018). Despite this, many Filipinos have shown interest in supporting

local brands. If Saniata is able to establish a good reputation for its products,

then more people will become interested in buying local products.

E. SWOT Analysis

STRENGTHS WEAKNESSES
 ● Products are made locally ● Inexperience of partners
● Product Variety ● Inexposure in the market
● Products are sustainable
● Affordable
● Available on social media
platforms

OPPORTUNITIES THREATS

● Increase in product selection ● Competition in the market

● Give exposure to products made
locally

III. Partnership Management Planning

● Logistics and Operations Manager

 The logistics manager is responsible for ensuring that the supply chain is efficient

and effective throughout the organization. They will organize, store, and monitor the

distribution of goods and ensure that items will be delivered on time to their destinations.

The logistics staff will be involved in the transportation cycle, handling approaching

shipments and getting the needed materials. Forklifts, casts, and sorters will be used in

fulfilling their responsibilities. Courier services such as Lalamove and LBC will be used in

order for products to be delivered.

● Finance Manager

The Finance manager will be responsible for ensuring the company’s financial

health and make recommendations for improving the business. The accountant will keep

records of the business transactions on revenues and expenses, they will also prepare

financial statements on the company’s business transactions. The treasurer will maintain

and improve the company's financial standing by guiding with financial policies,

assessing risks, and determining funding opportunities, they will also be providing

financial reports to the accountant and financial manager.

● Human Resources Manager

The human resources manager leads and directs the functions of the human

resource department, including hiring staff, conducting job interviews, administering

salaries, benefits, leave, and enforcing the company’s policies. They are also in charge

of overseeing the daily workflow of the environment, providing constructive and timely

performance evaluations, and handling discipline and termination of employees

according to company policies.

 ● Marketing Manager

The marketing manager will oversee and manage marketing campaigns to raise

awareness of and generate demand for the company’s products. This includes

designing, managing, and evaluating marketing campaigns. They ensure that the

company is able to communicate the right messaging, attract prospective customers,

and maintain old ones. The marketing department is also responsible for conducting

market research every 4 months and assist in creating marketing campaigns for the

business.

IV. Partnership Marketing Planning

A. Target Market

Despite the constant glorification of foreign cultures in the Philippines, there are

still many young Filipinos who wish to learn more about their culture and heritage.

Saniata’s aim to spread the beauty in Filipino culture can help preserve it for future

generations to see. Many Filipino shoppers have become more and more interested in

buying sustainable products, and Saniata can help encourage that demand as well as

encourage others to adopt sustainable living practices.

B. Location Strategies

The Store will be located in Glorietta 4 which is located in Ayala Center,

Courtyard Dr, Makati, 1200 Metro Manila. Glorietta 4 is a good place to set up a store

because the mall offers easy to access stores and has affordable workspace for rent.

Transportation will be convenient to customers and the employees since it is inside a

mall and public transportations is set near public spaces such as malls and offices.
 Glorietta 4’s location is ideal for stores since it is inside of a shopping mall and easily

accessible to customers.

C. Promotion Strategies

a. Social Media Platforms

Social media is a cheap and relatively easy way to promote businesses,

and many small enterprises can gain traction much more easily. Thus, Saniata

will have a mostly web-based promotion campaign. Social media has a wide

range of saturation based on age, with Millennials leading with 90.4%, Gen X

being 77.5%, and Baby Boomers being 48.2% in terms of participation.

I. Facebook

Facebook pages are often created for businesses in order to

better promote their products and services online. As the amount of

Facebook users continues to increase, this means that there will be a

larger audience for Saniata to showcase and market products that people

would be interested in. This can also be used to spread information about

Saniata’s advocacies and aims. To do this, the partners will dedicate PHP

2,500 in order to maintain the Facebook page.

II. Twitter

As of now, there are over 300 million users on Twitter (Iqbal,

2022). The social media app is one of the most used in the world. This

will allow Saniata to spread influence to other people in a quicker and

more accessible way. Aside from posting information about the company
 and its products, Saniata will also use Twitter in order to further promote

its advocacies on sustainable living and promotion of Filipino culture.

III. YouTube

YouTube has over 2.1 billion users worldwide (Dixon, 2021),

which makes it a popular platform for businesses to promote themselves.

The company will create a YouTube account where videos and

community posts will be made. This can help in promoting products and

making announcements. Official links to the website and other social

media platforms will be posted as well. Saniata will also sponsor

influencers and YouTubers who can use their platform to promote their

products.

IV. Instagram

According to Dixon (2022), there are over 1 billion monthly active

users on Instagram, making it one of the most popular social media

platforms, with 31.7% of its users being around the ages of 25-34, and

30.2% of the users are from ages 18-24. What is especially interesting

about Instagram is that it offers partnerships to promote your brand and

content to other users, and allows you to interact with them through Q&As

and Instagram stories. Some of the content that will be posted on the

official Saniata Instagram account will be facts and information about

Filipino culture, information about products and when they will officially

launch, and issues pertaining to the Philippines.

 1 billion monthly active users are on Instagram (Dixon, 2022),

making it one of the most popular social media platforms. Instagram also

offers partnerships with businesses to promote their brand and content to

other users. Q&As will also be used to interact with the business’

audience. Facts and information about Filipino culture will be shared on

the account, as well as issues pertaining to the Philippines.

Announcements and information about products will be made public

through the Instagram account.

V. TikTok

TikTok is the most recent of all the other social media platforms,

but it managed to become a global phenomenon within a short span of

time. An official TikTok account will be created for the purpose of

promoting Saniata’s products, making announcements, spreading

awareness on issues in the Philippines, and posting facts and info about

Filipino culture. Saniata will also collaborate with prominent Filipino

creators who will help in promoting the brand to their viewers.

b. Traditional advertisements

While most of the marketing by Saniata will be done through online

platforms, there will also be investments made to have traditional advertisements

in order to reach a wider audience. Since Saniata is still very new to the market,

traditional advertising can be used as a leverage for the company to gain more

exposure.

c. Public relations
 Press conferences, Q&As, as well as interviews will be used to promote

the business. Reporters and journalists can publish articles and reports about the

business, which will help it gain a wider audience and interest from the general

public. This can help Saniata in talking about its mission, vision, goals,

advocacies, and operations. A 2017 study (Sheena, Sudha) showed that blogs,

celebrities, and influences had a significant impact on consumer decision-making

and purchases. Through collaborations with influencers and celebrities, Saniata

can further expose itself to more people, who may be convinced to buy our

products.

D. Projected Sales Volume and Value

ANNUAL REVENUE

First year (2023) Second Year (2024) Third Year (2025) Total

PHP 9,800,000 PHP 15,650,720 PHP 23,253,400 PHP 48,704,120

TOTAL PRODUCTS SOLD

First year (2023) Second Year (2024) Third Year (2025)

435 Shirts 873 Shirt 1632 Shirt

212 Pants 442 Pants 921 Pants
186 Skirt 381 Skirt 724 Skirt
157 Dress 391 Dress 689 Dress
124 Bag 309 Bag 651 Bag
147 Poach 332 Poach 685 Poach
584 Necklace 1123 Necklace 2321 Necklace
428 Earrings 910 Earrings 1923 Earrings
622 Bracelet 1321 Bracelet 2642 Bracelet
731 Metal straw sets 1512 Metal straw sets 3021 Metal straw sets
V. Partnership Operations Planning

A. Design of Goods

As part of the business’s advocacy of promoting Filipino culture to others as well

as sustainable living, the design of our goods will display the art and crafts of the

Philippines. The products will all have Filipino-inspired designs and patterns, made from

reusable materials. According to Mulder (2012), cultural imperialism has deeply affected

Filipinos throughout generations, leading them to appreciate foreign cultures more than

their own, leading to the people lacking a sense of nationhood. Through the use of

promoting the arts, such as fashion, Filipinos can learn to appreciate their own culture

and see its beauty.

B. Quality Management

Saniata greatly values its customers, since the company and the brand would not

be able to survive without them. To ensure that our products remain high-quality for

purchase, the business will constantly keep in contact with suppliers, as well as check

for any possible manufacturing issues. All products to be sold will be alsmunder strict

inspection in case of any damages or defects. Health protocols will be strictly followed as

recommended by the government; employees must be fully vaccinated and regularly

checked for any signs of illness. Face masks should be worn at all times and social

distancing will be strictly observed.

C. Process Strategy

There will be two process strategies put into place, according to whether the

buyer purchases online or offline. These strategies will allow for customers to connect

with the business and have easier access to purchase anda access products.
 ONLINE

Before Purchase
1. People see Saniata’s posts on social media and locate the company’s
official webpage found on the internet
2. They scroll around searching through the variety of products we have
available on our website that can be shipped directly to their address
nationwide

During Purchase
1. Search through the specific products the customer wants and read the
description and given price for each product
2. Insert all information related to the delivery and customer name,
including their mode of payment

After Purchase
1. Wait for the product to be delivered based on the given time
2. Share and comment on our social media pages
3. Enjoy the product

OFFLINE

Before Purchase
1. Find advertisements located around the Metro Manila and search into
what the company is about
2. Find Saniata’s store on google, and proceed to the physical location
3. Search around and see the physical products on-hand in the store

During Purchase
1. Inquire and test out products that are found on display at the store
2. Payment through the cashier through both cash and bank transfer
options

After Purchase
 1. Share and comment on our social media pages
2. Enjoy the product

D. Store and Office Layout

The office will be used by the partners and is located in a single office space that

is approximately 50 square meters, that is to be rented near Glorietta 4, Ayala Malls. The

office houses 2 bathrooms, a meeting room, a resting lounge, the staff’s dining area,

reception desk and the main working stations for the employees. The main working area

for the employees properly observes social distancing to comply with the Covid-19

healthy and safety protocols, there is also a meeting room wherein the partners can

discuss and strategize for the future of the company.

For the store layout, upon entering the store, the customer is greeted by the display of

the products in the center, there are also displays shown on the wall shelves and the

cubicle display shelves. The store also boasts its mannequins displaying the clothing

products of the company, fitting rooms are provided for the customers to try on the

apparel and accessories.

E. Human Resources

Saniata’s Human Resources department and manager will spearhead

negotiations and coordination with the various manufacturers for the creation and

production of products such as clothing, metal straw sets, and jewelry. The human

resources will also be in charge of the following responsibilities:

● Meeting with vendors, screening them, and conducting interviews with them.

● Making high-quality working conditions for employees and establishing good

working relations.

● Having employees become more and more involved in the business

● Maintaining a positive working environment and atmosphere

● Properly address any issues in the workplace and creating solutions to the

problem.

The HR will also carefully select and choose each employee through thorough

background checks, interviews, and interactions with each person. The requirements for

hiring employees and staff members are as follows:

● Has interest in Filipino culture

● Is deeply knowledgeable about Filipino culture

● Is a college graduate

● Should be fully capable of working from home, and have the equipment to do so

(e.g. having a proper device for online meetings)

● Must have the proper skills for their position

● Is able to maintain cordial relationships with fellow employees

 The HR department will also ensure that each and every employee is given fair

treatment, and will make sure that the employees are well-informed about labor laws and

regulations. Regular meetings will also be conducted to assess work performance as

well as present feedback from customers. The HR department will also give out rewards

to employees who have exhibited exemplary behavior and conduct.

VI. Partnership Marketing Planning

A. Initial Financing

PHP 5,850,000 will be invested into the business, as agreed to by the partners,

with a total cash investment of PHP 4,650,000. PHP 400,000 will be invested into

furniture and fixtures, and PHP 800,000 will be invested into transportation of goods.

There will be no debts or loans taken by the partnership. All of the assets the partners

will be investing into are their personal savings and property.

B. Pricing Structure

Sustainable clothing, accessories, and items will be the products sold by Saniata.

Among the items are jewelry, bags, pouches, shirts, skirts, pants, and metal straw sets.

Each of them will range from PHP 150 to PHP 800. The partners have decided that the

consumer and seller will reach a proper consensus in regards to the pricing due to

Saniata’s location and its aims. These prices can also help to offset the number of

expenses incurred by the company.

C. Chart of Accounts

Account Title
 ASSETS

Cash

Accounts Receivable

Allowance for Doubtful Accounts

Office Supplies

Merchandise Inventory

Store Supplies On Hand

Petty Cash Fund

Furniture and Fixtures

Accumulated Depreciation - Furniture and Fixtures

Office Equipment

Accumulated Depreciation - Office Equipment

Transportation Equipment

Accumulated Depreciation - Transportation Equipment

Advances to Employees

LIABILITIES

Notes Payable

Accounts Payable

Utilities Payable

Salaries Payable

Unearned Income

EQUITY

Gelacio, Capital

Gelacio, Drawing

Athaiah, Capital

Athaiah, Drawing

Lomboy, Capital

Lomboy, Drawing
 REVENUE

Sales

Sales Returns and Allowances

Sales Discounts

EXPENSES

Purchases

Purchase Returns and Allowances

Purchase Discounts

Utilities Expense

Salaries Expense

Supplies Expense

Salaries Expense

Depreciation Expense

Bad Debts Expense

Rent Expense

Advertising Expense

Freight-In

Freight-Out

Insurance Expense

Miscellaneous Expense

Repairs and Maintenance Expense

Office Supplies Expense

D. Income Statement
 The charts shown will be the presumptive income statement of Saniata for its first three

years of its operations. Based on the income statement, the company will generate a net
income of PHP 2,861,371 for its first year. The revenue and profits of the company in the next

two years will increase significantly to PHP 5,121,238 and PHP 7,505,164.

E. Statement of Changes In Partner’s Equity

Lei
Lei will be receiving an annual salary of PHP 614,549, while Athaiah and Julian will be receiving

PHP 716,973. The remaining balance of net profit or loss shall then be distributed equally

among the partners.

F. Statement of Cash Flows

 For the first year of the business, the company generated PHP 9,800,000 of revenue

and released PHP 6,663,053 of outflows, which resulted in a net cash of PHP 3,136,947. The

inflow for three years increased from PHP 3,136,947 to PHP 5,329,360, and to PHP 7,974,855

G. Statement of Financial Position

 As presented above, the total assets consist of cash in the bank as current assets and

Noncurrent assets consist of property, plant , and equipment (PPE). For the computation of

cash in bank it is to be located in the Statement of Cash Flows, while the computation of PPE is

to be located in the notes to financial statements. For the partner’s equity, it is derived from the

total ending balance of the statement of partner’s equity.

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