Manuscript Bsu

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MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

Quezon, Philippines
BROAS SABROSAS:
A FLAVORED BROAS
A Feasibility Study submitted to the Faculty Members of

Senior High School Department,
(Accountancy, Business and Management)
Of Manuel S. Enverga University Foundation Candelaria Inc.
In partial fulfilment of the requirements for the

Research in Daily Life 1
(Accountancy, Business and Management – ABM 2)
April 2022
Senior High School Department

ACCOUNTANCY, BUSINESS, AND MANAGEMENT
Broas Sabrosas: Flavored Broas
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CHAPTER 4
MANAGEMENT STUDY
A. FORM OF OWNERSHIP
Six people own and control the business of Broas Sabrosas, which is also known
as a partnership. In most forms of partnerships, each partner has unlimited accountability
for the debts incurred by the firm. The decision-making processes inside the business are
being consulted and are exclusive to the six owners who invested an equal amount of
capital. The expertise of the owners should be added and used in the business. The
proprietors are collaborating to create the organization using their own competencies.
B. CAPITALIZATION
The business's capital will be provided by the six owners. Each owner will
contribute 90,000 pesos to fulfill the estimated capital of 540,000 pesos needed to
establish the business.
OWNERS CONTRIBUTION SOURCE OF CAPITAL
Lopez, Keziah ₱ 90,000.00 Personal Savings
Burgos, Chesca ₱ 90,000.00 Personal Savings

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Magsumbol, Alliyah ₱ 90,000.00 Personal Savings
Baliton, Lovely ₱ 90,000.00 Personal Savings
Sevilla, Tricia Mae ₱ 90,000.00 Personal Savings
Dayon, Ian ₱ 90,000.00 Personal Savings
Table 4.1: Capitalization
C. ORGANIZATIONAL CHART
The Broas Sabrosas explains the business's organizational structure. Each
employee has distinct functions and responsibilities in order to keep the firm running
effectively. The store head will be responsible for performing routine maintenance on the
business and supervising the cashier, cook, and other employees. The accountant will be
responsible for the business's financial transactions. The cashier is in charge of greeting
customers and taking their orders. The cook's responsibilities include preparing and
manufacturing the product, as well as supervising and cleaning the work area. Finally, the
personnel will be entrusted with promoting the firm online, taking online purchases, and
responding to consumer inquiries on Broas Sabrosas' social media pages.

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Figure 4.1: Organizational Chart
D. MANPOWER
The following table lists the positions that are required in the company.
The position, the quantity, the qualifications, and the requirements for a certain
employment are stated in the following table.
POSITION QUANTITY RESPONSIBILITY REQUIREMENTS
STOREHEAD 1  Responsibiliti  Finished a degree in
/ OWNER es include any business related
overseeing the four year course
business's  Willing to undergo
entire training
operation.  Has good leadership
 Responsibiliti

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es include skills
maintaining  Pleasing personality
the store's  With at least 2yrs
operations. work experienced
with any related task

 Attaining
 Flexible and hard
objectives and
working
directing
 Knowledgeable as
management
head staff
 Organizing
 Has the ability to
and evaluating
lead and to develop
business
the employees
operations
 Employees
are coached
and counseled
 Assures a
lawful, safe,
and secure
work
environment.
 Responsible

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for foreseeing
requirements,
prepares
annual
budget,
schedules
expenditures,
and initiates
corrective
actions to
meet financial
targets.
 Responsibiliti
es include the
opening and
closing of the
store.
 Responsible
for inspecting
equipment
and
recommendin

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modifications
that would
benefit the
business.
STAFF / 1  Responsibiliti  Atleast 18 years old
OWNER es include and above
managing and  Must be a high
operating the school graduate
online  Is fluent in English
business. and Tagalog
Language
 Takes,
 Is computer and
arranges
social media literate
orders, and
 Has skills in editing
updates the
 Should be aware in
store's site to
the new trends and
reflect online
topics
sales.
 Has pleasing
 Responsible
personality
in answering
 Should have good
the queries of
communication

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the online skills
customers
 Is responsible
for posting
business
notifications
and marketing
advertisement
s.
 When they
have
completed
their tasks in
the online
store, they
may be
requested to
assist in
arranging the
merchandise
and cleaning
up.

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 Reporting to
the storehead
any damages
and repairs
that need to be
done.
 Is required to
help in
packaging the
goods.
CASHIER / 1  Assists  Atleast High School
OWNER consumers Graduate
and clarifies  At Least 18 years
their product- old and above
related  Customer service or
inquiries. cashier experience
 Willing to undergo
 Resolve client
training
issues
 Good
 Is also
communication
essential to
skills and pleasing
assist in

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cleaning the personality
store prior to  Hard working and
closing at the dedicated to work
end of the
day.
 Notifying the
storehead of
any damages
or necessary
repairs.
COOK / 3  Reporting to  She/he has the
OWNER the storehead ability to read,
any damages understand, and
and repairs follow recipes.
that need to be  Capable of lifting
done. heavy objects.
 Excellent
 Conducts a
understanding of
thorough
food
inspection and
preparation procedur
assembly of
es and cooking
the product's
methods, as well as

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ingredients. safety and
cleanliness
 Conduct an
protocols.
inventory of
the kitchen's
requirements.
 Maintains a
clean kitchen
environment
and ensures
that all
equipment is
functioning
properly.
 Properly keep
foods in their
individual
containers or
packagings.
 Responsibiliti
es include
reporting on

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all necessary
items within
the kitchen.
 Restocks all
necessary
items in the
kitchen, most
notably the
ingredients.
 Ascertain that
all orders are
met and that
there is an
adequate
supply of the
goods.
 Responsible
for baking the
goods that
will meet the
satisfaction of
the customers.

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ACCOUNTA 1  Maintains  Must be a graduate
NT records of of Bachelor of
financial Science in
transactions Accountancy.
 With at least 4 years

 Controls the
work experience as
business's
accountant
accounting
 Special licenses or
operations
certification may be
 Makes
required
recommendati
 Strong analytical,
ons for
communication, and
enhancing the
computer skills.
business's
 She or he has
financial
analytical and
stability.
problem-solving
 Analyzes skills.
business  She/he has time
information management and
 Compiles data critical thinking.
to provide an  More education or
overview of experience may be

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the present preferred.
financial  Has flexible time or
status. can be on call when
needed.
 Leads
operations and
responds to
queries to
guide
employees on
the basis of
money.
 Performs
database
backups in
order to
secure the
enterprise's
financial
information.
 Responsible
for the
preparation of

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financial
statements,
balance
sheets, and
other reports.
Table 4.2: Manpower
E. PROJECT SCHEDULE
The owners will begin developing the business in November. Business owners
will go through brainstorming and discussing their business. This month, all ideas and
important business matters will be laid out. During the same month, the business will
apply for the necessary licenses and permits to operate. The application period for these
permits will be two months, from November to December. Additionally, in November,
the owners will conduct a survey in which they will assist in raising other business
suggestions. December will also be the month to purchase the necessary ingredients and
equipment. Having ingredients and equipment completed well in advance of the
business's opening will help prepare the business. Additionally, during the same month of
December to January, staff will be trained to be aware of their jobs and to perform them
successfully during the business's opening. Additionally, in December, a product testing
and tasting will be conducted to determine whether Broas Sabrosas would sell broas that
are appropriate for the Filipino taste. In December and January, an online store will be
launched to attract customers, promote the business, and introduce it to the market. From

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January to May, advertising on online platforms will be used to promote the business in
the market and interest the curiosity of potential consumers. The physical store's opening
and establishment will take place in May, once all necessary work has been completed
and the Broas Sabrosas is ready to welcome clients.
BUSINESS NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY
ACTIVITIES
Planning of
Business
Applying for
licenses and
permits
Conducting
of Survey
Purchasing
of the
ingredients
and
equipment
Training of
the workers
Product Trial

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and Tasting
Establishing
the Online
Store
Advertising
through
online
Establishing
the Physical
Store
Table 4.3: Project Schedule
F. HIRING PROCESS
HIRING PROCESS
1. Identify what position is needed for the workers.
2. Create a recruitment plan
3. Setting up ads for the availability of the open position
4. Review applications
5. Interview the employees
6. Choose the most qualified applicant
7. Do background checks on the chosen applicants

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8. Make an offer, ready the contract, and paper works
9. Hiring and welcoming the new employee
G. UNIFORM
Figure 4.2: Broas Sabrosas Uniform
H. COMPENSATION AND BENEFITS
1. COMPENSATION, SALARIES, AND WAGES

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The table below shows the details about the schedule of each employee’s duties,
the number of hours that they work, and their allotted wages for every day, week and for
the whole month.
POSITION SCHEDULE NO. OF DAILY WEEKLY MONTHLY
OF DUTIES HOURS SALARY SALARY SALARY
STOREHEAD / 7:00 am to 11 hours ₱550.00 ₱3,300.00 ₱14,300.00
OWNER 12:00 pm
1:00 pm to
7:00 pm
STAFF / OWNER 7:00 am to 11 hours ₱550.00 ₱3,300.00 ₱14,300.00
12:00 pm
1:00 pm to
7:00 pm
CASHIER / 7:00 am to 11 hours ₱550.00 ₱3,300.00 ₱14,300.00
OWNER 12:00 pm
1:00 pm to
7:00 pm
COOK / OWNER  7:00 8 hours ₱550.00 ₱3,300.00 ₱14,300.00
am to
12:00
pm -

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1:00
pm to
4:00
pm
 9:00
am to
12:00
pm -
1:00
pm to
6:00
pm
 11:00
am to
12:00
pm to
1:00
pm to
7:00
pm

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ACCOUNTANT / On call every ₱650.00 ₱650.00
OWNER once a month
Table 4.4: Compensation, Salary, and Wages
2. BENEFITS
Broas Sabrosas guarantees that the employees will receive all of the benefits that
are listed in their employment contract, unless otherwise stated. Despite the fact that
Broas Sabrosas is a small partnership business, the company guarantees that its
employees will receive the finest care possible in a fair and equal way.
3. OVERTIME PAY
Overtime work for employees are also given additional wages for working
beyond 8 hours. According to the Labor Code of the Philippines workers shall be paid
with his/her regular wage rate plus an additional 25% of the regular wage per hour
worked. In addition there will also be a 30% additional to the regular wage rate of an
employee who works during holidays or rest days.
4. REGULAR HOLIDAYS
DATE OCCASION
January 1 New Year's Day

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April 9 Day of Valor
April 14 Maundy Thursday
April 15 Good Friday
May 1 Labor Day
May 3 Eid’l Fitr
June 12 Independence Day
August 29 National Heroes’ Day
November 30 Bonifacio Day
December 25 Christmas Day
December 30 Rizal Day
Table 4.5: Regular Holidays
5. SPECIAL HOLIDAYS
DATE OCCASION
February 1 Chinese New Year
February 25 EDSA Revolution Anniversary
April 16 Black Saturday

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August 21 Ninoy Aquino Day
November 1 All Saints Day
December 8 Feast of Immaculate Conception of Mary
Table 4.6: Special Holidays
6. SSS/PHILHEALTH/PAG-IBIG BENEFITS
According to the law, employees would receive benefits from SSS,
PHILHEALTH, and PAG-IBIG. The benefits listed below will be deducted from the
employee's compensation with complete honesty.
SSS BENEFIT
In the event of death, disability, illness, pregnancy, or advanced age. Employees
covered by Broas Sabrosas are eligible for a package of benefits through the Social
Security and Employees' Compensation (EC) programs.
In essence, the SSS compensates individuals for income lost due to the
aforementioned situations. The Social Security Program provides the following benefits:
 Sickness
 Maternity
 Retirement

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 Disability
 Death
 Funeral
 Unemployment
Figure 4.3: SSS Benefit Contribution Table
PHILHEALTH BENEFIT
Because disease strikes when least expected, Broas Sabrosas' employees will have
health insurance through PhilHealth. It contributes to cost savings on hospital bills by
lowering the costs of hospitalization and professional fees if someone is admitted to the
hospital.

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Employees are paid the minimum wage plus additional compensation for a variety
of reasons, including holidays or overtime, paid leave benefits, and required government
payments.
Figure 4.4: PhilHealth Benefit Contribution
PAG-IBIG BENEFIT
Employees at Broas Sabrosas have their monthly savings quadrupled right away.
It will also increase its payouts each year.
The agency’s provident Savings Program has two sorts of contributions: the first
and most frequent, is Pag-IBIG I, in which employers and workers split a minimum
monthly deposit of Php200. When a Broas Sabrosas member has made 24 monthly
payments, he or she is eligible for the Multi-Purpose Loan(MPL), the Calamity Loan, or
any of the agency’s housing loans.

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Figure 4.4: Pag - Ibig Benefit Contribution Table
I. ORGANIZATIONAL POLICIES
1. FOR EMPLOYEES
RULES AND REGULATIONS
I. Safety & Health Of Employees
It is important to ensure that employees work in a safe and healthy workplace.
Employees are encouraged to report any accidents, injuries, or other possible hazards to

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themselves or others, regardless of their seriousness, in order to contribute to the creation
of a safer work environment for everyone.
II. Anti-Harassment and Discrimination
Anti-Harassment and Discrimination includes any verbal or physical attack
towards the employee. It may be driven by a person's sexual orientation, religion, race,
national origin, disability, or any other constitutionally protected category.
 Assaults against one's sexual or physical purity
 Sexually insulting sounds such as leering and whistling
 Offending jokes or statements that are personal in nature
 Any form of nonverbal sexual harassment, including the distribution or exhibition
of malicious materials, such as calendars, posters, and publications, is prohibited.
 Any mockery of a person's race, religion, belief, or culture
III. Attendance
Punctuality is important, since it enables the business to run smoothly and on time
when employees are present and come on time for work.
 If an employee is unable to perform his or her assigned hours for any
reason, the employee must contact the storehead in order for the position
to be filled.
 If an employee wishes to take a leave of absence during the workday, he
or she must contact the storehead in advance and obtain authorization
from his or her superior.

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IV. Personal Appearance and Dress Code
The dress code of Broas Sabrosas for their employees. Employees must follow
these dress codes as it will also help in promoting the business.
 White T-shirt uniform provided by the company.
 Black Pants
 Comfortable Rubber Shoes
 Apron for the Cooks
 Facemask for added protection from COVID-19
V. Disciplinary Actions Policy
The Disciplinary Policy is responsible for changing employee behavior. Changing
a negative employee's behavior is especially important as well as positive behavior.
 Being impolite to coworkers and clients.
 Infidelity to the company and disloyalty to the company
 Unauthorized use or possession of Company, coworker, or public
property.
 Utilization of any hazardous item capable of causing injury or risking
another's life
 Creating commotion within the organization
 Having a negative attitude toward other employees for personal reasons
 Jeopardizing the business or coworkers' property toward a personal
purpose.

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VI. Substance and Abuse
Safety and peace of mind are two things that the company provides for its
workers. Broas Sabrosas has a zero-tolerance policy for the consumption of alcoholic
beverages or illegal narcotics at work.
SANCTIONS AND PENALTIES:
 1st Offense: Written Warning
 2nd Offense: Verbal Warning
 3rd Offense: Salary Deduction
 4th Offense: 2 Weeks Suspension without Salary
 5th Offense: Termination of Contract
REWARDS AND RECOGNITION:
 Employees receive monetary bonuses in their regular wages
 Will receive 13th month pay and compensation is paid in full.
 Distributing certificates of appreciation to recognize employees'
efforts
 Employees receive gift certificates and a discount
 Trips and bonding sessions with the rest of the company
 Month-to-month employee of the month recognition with a
monetary bonus
2. FOR CUSTOMERS

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RULES AND REGULATIONS
 Show respect for everyone.
 Absolutely no smoking
 You must not create commotions and disturbance on others, the
other customers or the staff in the store.
 Unnecessary or hazardous items are not permitted.
 There will be no loitering
SANCTIONS AND PENALTIES
 1st: Warning
 2nd: Must pay a 150.00 fine
 3rd: Two-week ban at the store.
 4th: Complete ban from the store.
 Any resulting harm will be compensated in a reasonable amount
 Any individual who violates these rules and regulations will receive a warning
and will be subject to the following punishments.
REWARDS AND RECOGNITION
 A 5% discount is available to high-spending consumers.
 Distributing a loyalty card to new consumers, which entitles them to a free twelve
pieces of Broas Sabrosas on their 12th purchase.
 A 10% discount is available to clients who purchase on their birthdays.

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 Awarding certificates of appreciation to consumers for their loyalty.
 Broas Sabrosas is giving away free tote bags with a minimum purchase of 700
pesos.
J. LEGAL REQUIREMENTS
TAXES AND LICENSES AMOUNT
Mayor’s Permit ₱440.00
Sanitary Inspection Fee ₱330.00
Barangay Permit ₱100.00
Health Fee ₱100.00
Zoning Fee ₱300.00
Garbage Fee ₱500.00
Miscellaneous Fee ₱650.00
Occupation Permit Fee ₱260.00
Business Sticker ₱50.00
Engineering Permit Fee ₱578.00
Security and Exchange Commission (SEC) ₱3,050.00
Registration
Bureau of Internal Revenue (BIR) Registration ₱1,000.00
LTO Registration ₱1,900.00
LTFRB Registration ₱510.00
TOTAL: ₱9,768.00

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Table 4.7: Legal Requirements

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CHAPTER V
FINANCIAL STUDY
MAJOR ASSUMPTIONS
 Note 1: The Annual Sales will increase by 5% per year based on the previous
year.
 Note 2: The Cost of Sales will increase by 5% per year based on the previous
year.
 Note 3: The Licenses and Permits will be applied through legal processes and
after the first year of business, the business will not register for the Security and
Exchange Commission because it is only for one time registration.
 Note 4: The Advertising Expenses will reduce into only two advertising materials
after year of the opening of the business.
 Note 5: Annual Office Supplies Expense will increase 2% per year.
 Note 6: Annual Sanitation and Safety Supplies will increase by 3% per year
 Note 7: The Rent Expenses is fixed at 23,000 pesos for the next 5 years of
business. Which sums into 276,000 pesos for annual rent.
 Note 8: The Prepaid Rent will stay at the 2 month rent within the start of the year
for each year.

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 Note 9: The Renovation Expenses will be a one-time payment that will be done
before the opening of the business.
 Note 10: The Annual Salaries Expenses will increase by 5% based on previous
year.
I. Note 10.1: The Annual Benefits Expenses will increase by 3% based on
previous year.
II. Note 10.2: The Annual SSS Payable will increase by 3% based on
previous year.
III. Note 10.3: The Annual PhilHealth Payable will increase by 3% based on
previous year.
IV. Note 10.4: The Annual PAG-IBIG Payable will increase by 3% based on
previous year.
V. Note 10.5: The Net Pay will increase by 3% every year based on previous
year.
VI. Note 10.6: The 13th Month Pay will increase by 3% every year based on
previous year.
 Note 11: The Annual Utilities Expenses will increase by 2% per year based on
previous year.
 Note 12: The Annual Depreciation for Machineries and Equipment is 20% based
on the first year.
 Note 13: The Annual Depreciation for Furniture and Fixtures is 20% based on the
first year.

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 Note 14: The Income Tax Expense will be graduated based on net income before
tax.
 Note 15: Value Added Tax Expense is based on Gross Profit.

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BROAS SABROSAS
Total Projected Costs
Current Asset
Prepaid Rent 46,000.00
Total Current Assets 46,000.00
Fixed Assets
Furniture & Fixtures 53,253.00
Machineries and Equipment 78,121.00
Total Fixed Assets 131,374.00
Provision For Expenses

Permits & Licences 9,768.00
Advertising Expenses 2,050.00
Salaries Expense 86,450.00
Raw Materials 140,793.00
Supplies Expenses 1,503.00
Sanitation Expenses 4,421.00
Rent Expenses 115,000.00
Utilities Expenses 4,600.00
Renovation Expense 5,500.00
Total Provision Expenses 370,085.00
Total Projected Cost 501,459.00
Cash Reserves 38,541.00
Initial Capital Investment 540,000.00
Table 5.1: Total Projected Costs

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BROAS SABROSAS
Note 1 - Sales
Merchandising Sales YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Products Selling Price per Unit Unit per Month Monthly Sales Annual Sales Annual Sales Annual Sales Annual Sales Annual Sales
SMALL (12 PIECES) PHP 60.00 1,274.00 PHP 76,440.00 PHP 917,280.00 PHP 1,111,320.00 PHP 1,166,886.00 PHP 1,225,230.30 PHP 1,286,491.82
MEDIUM (50 PIECES) PHP 229.00 650.00 148,850.00 1,786,200.00 2,164,050.00 2,272,252.50 2,385,865.13 2,505,158.38
LARGE (75 PIECES) PHP 349.00 338.00 117,962.00 1,415,544.00 1,714,986.00 1,800,735.30 1,890,772.07 1,985,310.67
TOTAL PHP 396,060.00 PHP 4,752,720.00 PHP 4,990,356.00 PHP 5,239,873.80 PHP 5,501,867.49 PHP 5,776,960.86
Note : Annual Sales will increase by 5% per year
BROAS SABROSAS
Note 2 - Costs Of Sales
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Products Cost per Unit Unit per Month Monthly Costs Annual Costs Annual Costs Annual Costs Annual Costs Annual Costs
Ingredients PHP - PHP - PHP 1,074,372.00 PHP 1,128,090.60 PHP 1,184,495.13 PHP 1,243,719.89 PHP 1,305,905.88
Paper Plate (4.5x8.7 in) with Plastic PHP 2.20 1,274.00 2,802.80 33,633.60 35,315.28 37,081.04 38,935.10 40,881.85
Medium Sized Bucket Container PHP 65.00 650.00 42,250.00 507,000.00 532,350.00 558,967.50 586,915.88 616,261.67
Large Sized Bucket Container PHP 85.00 338.00 28,730.00 344,760.00 361,998.00 380,097.90 399,102.80 419,057.93
PHP 73,782.80 PHP 1,959,765.60 PHP 2,057,753.88 PHP 2,160,641.57 PHP 2,268,673.65 PHP 2,382,107.34
Note : Annual Cost of Sales will increase by 5% per year
Table 5.2: Sales
Table 5.3: Cost of Sales
Table 5.4: Licenses and Permits
BROAS SABROSAS
Note 3 - Licenses & Permits
Mayor's Permit PHP 440.00 PHP 440.00 PHP 440.00 PHP 440.00 PHP 440.00
Sanitary Inspection Fee 330.00 100.00 100.00 100.00 100.00
Barangay Permit 100.00 100.00 100.00 100.00 100.00
Health Fee 100.00 100.00 100.00 100.00 100.00
Zoning Fee 300.00 300.00 300.00 300.00 300.00
Garbage Fee 500.00 500.00 500.00 500.00 500.00
Miscellaneous Fee 650.00 650.00 650.00 650.00 650.00
Occupation Permit Fee 260.00 260.00 260.00 260.00 260.00
Business Sticker 50.00 50.00 50.00 50.00 50.00
Engineering Permit Fee 578.00 578.00 578.00 578.00 578.00
Security and Exchange Commission (SEC) Registration 3,050.00 - - - -
LTO Registration 1,900.00 1,900.00 1,900.00 1,900.00 1,900.00
LTFRB Registration 510.00 510.00 510.00Senior High School Department
510.00 510.00
Bureau of Internal Revenue (BIR) Registration ACCOUNTANCY,
1,000.00 1,000.00 BUSINESS,
1,000.00AND MANAGEMENT
1,000.00 1,000.00
Total Licences & Permits Fee PHP 9,768.00 PHP 6,488.00 PHP Broas Sabrosas:
6,488.00 Flavored
PHP 6,488.00 PHP Broas
6,488.00
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BROAS SABROSAS
Note 4 - Advertising Expenses
Tarpaulins (2x5ft) PHP 400.00 PHP 400.00 PHP 400.00 PHP 400.00 PHP 400.00
Tarpaulins (2x2) 1,600.00 - - - -
Calling Card 50.00 50.00 50.00 50.00 50.00
Total Advertising Expenses PHP 2,050.00 PHP 450.00 PHP 450.00 PHP 450.00 PHP 450.00
Table 5.5: Advertising Expenses
BROAS SABROSAS
Note 5 - Supplies Expenses
Office Supplies
Item Unit Cost Quantity YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Record Book PHP 70.00 2 PHP 140.00 PHP 142.80 PHP 145.66 PHP 148.57 PHP 151.54
Ballpen PHP 4.00 12 48.00 48.96 49.94 50.94 51.96
Bond Paper PHP 150.00 2 300.00 306.00 312.12 318.36 324.73
Calculator PHP 250.00 2 500.00 510.00 520.20 530.60 541.22
Stapler PHP 40.00 1 40.00 40.80 41.62 42.45 43.30
Staple PHP 20.00 10 200.00 204.00 208.08 212.24 216.49
Folder PHP 5.00 20 100.00 102.00 104.04 106.12 108.24
Paper Clips PHP 0.50 50 25.00 25.50 26.01 26.53 27.06
Calendar PHP 150.00 1 150.00 153.00 156.06 159.18 162.36
Bulletin Board PHP 150.00 1 150.00 - - - -
Post It Notes PHP 20.00 5 100.00 102.00 104.04 106.12 108.24
Uniform PHP 250.00 5 1,250.00 1,275.00 1,300.50 1,326.51 1,353.04
Total Office Supplies Expenses PHP 3,003.00 PHP 2,910.06 PHP 2,968.26 PHP 3,027.63 PHP 3,088.18
Note : Annual Office Supplies Expenses will increase by 2% per year.
Table 5.6: Supplies Expenses

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Quezon, Philippines
BROAS SABROSAS
Note 6 - Sanitation and Safety Expenses
Sanitation Supplies
Item Unit Cost Quantity YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Alcohol PHP 130.00 3 PHP 390.00 PHP 401.70 PHP 413.75 PHP 426.16 PHP 438.95
Dishwashing Liquid PHP 100.00 3 300.00 309.00 318.27 327.82 337.65
Scotch Brite PHP 30.00 2 60.00 61.80 63.65 65.56 67.53
Dishcloth PHP 20.00 5 100.00 103.00 106.09 109.27 112.55
Hand Liquid Soap PHP 84.00 1 84.00 86.52 89.12 91.79 94.54
Hand Liquid Soap Refill PHP 67.00 3 201.00 207.03 213.24 219.64 226.23
Gloves PHP 0.43 100 43.00 44.29 45.62 46.99 48.40
Pot Holder Gloves PHP 20.00 4 80.00 82.40 84.87 87.42 90.04
Paper Towel PHP 60.00 3 180.00 185.40 190.96 196.69 202.59
Rug PHP 35.00 3 105.00 108.15 111.39 114.74 118.18
Mop PHP 99.00 1 99.00 101.97 105.03 108.18 111.43
Bucket PHP 50.00 1 50.00 51.50 53.05 54.64 56.28
Broom PHP 150.00 2 300.00 309.00 318.27 327.82 337.65
Dust Pan PHP 25.00 1 25.00 25.75 26.52 27.32 28.14
Trash Bin PHP 60.00 3 180.00 185.40 190.96 196.69 202.59
Trash Bag PHP 27.00 3 81.00 83.43 85.93 88.51 91.17
Face Mask PHP 1.00 100 100.00 103.00 106.09 109.27 112.55
Apron PHP 39.00 3 117.00 120.51 124.13 127.85 131.68
Hairnet PHP 5.00 10 50.00 51.50 53.05 54.64 56.28
Fire Extinguisher PHP 938.00 2 1,876.00 1,932.28 1,990.25 2,049.96 2,111.45
Total Sanitation Supplies PHP 4,421.00 PHP 4,553.63 PHP 4,690.24 PHP 4,830.95 PHP 4,975.87
Note : Annual Sanitation Expenses will increase by 3% per year.
BROAS SABROSAS
Note 7 - Rent Expenses
Monthly Rent YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Rent PHP 23,000.00 PHP 276,000.00 PHP 276,000.00 PHP 276,000.00 PHP 276,000.00 PHP 276,000.00
Total Rent Expenses PHP 276,000.00 PHP 276,000.00 PHP 276,000.00 PHP 276,000.00 PHP 276,000.00
Table 5.7: Sanitation and Safety Expenses
Table 5.8: Rent Expenses
Table 5.9: Prepaid Rent
BROAS SABROSAS
Note 8 - Prepaid Rent
YEAR 1 YEAR 2 Senior
YEAR 3 High School
YEAR 4 Department
YEAR 5
Prepaid Rent beginning ACCOUNTANCY, BUSINESS, AND MANAGEMENT
PHP 46,000.00 PHP 46,000.00 PHP 46,000.00 PHP 46,000.00 PHP 46,000.00
Rent Expenses PHP 46,000.00 PHP 46,000.00 PHP 46,000.00 PHP 46,000.00 PHP 46,000.00
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Quezon, Philippines
BROAS SABROSAS
Note 9 - Renovation Expenses
Total Cost YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Renovation PHP 5,500.00 PHP 5,500.00 PHP - PHP - PHP - PHP -
Total Renovation Expenses PHP 5,500.00 - - - -
BROAS SABROSAS
Note 10 - Salaries Expenses
Daily Monthly YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Store Head / Owner PHP 550.00 PHP 14,300.00 PHP 171,600.00 PHP 180,180.00 PHP 189,189.00 PHP 198,648.45 PHP 208,580.87
Cashier / Owner 550.00 14,300.00 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
Cook 1 / Owner 550.00 14,300.00 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
Cook 2 / Owner 550.00 14,300.00 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
Cook 3 / Owner 550.00 14,300.00 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
Staff / Owner 550.00 14,300.00 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
Accountant 650.00 7,800.00 8,190.00 8,599.50 9,029.48 9,480.95
TOTAL PHP 3,300.00 PHP 86,450.00 PHP 1,037,400.00 PHP 1,089,270.00 PHP 1,143,733.50 PHP 1,200,920.18 PHP 1,260,966.18
Note : Annual Salaries Expenses will increase by 5% per year.
Table 5.10: Renovation Expenses
Table 5.11: Salaries Expenses
Table 5.12: Benefits Expense
Table 5.13: SSS Payable
NOTE 10A. BENEFITS EXPENSE Monthly

13 Month Pay SSS PHILHEALTH PAG-IBIG YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Employee Contribution
Store Head / Owner PHP 14,300.00 PHP 1,275.00 PHP 286.00 PHP 286.00 PHP 1,847.00 PHP 22,164.00 PHP 22,828.92 PHP 23,513.79 PHP 24,219.20 PHP 24,945.78
SSSCashier
PAYABLE / Owner 14,300.00 Monthly Salary
1,275.00 Employer Share286.00 Employee Share286.00 Total Contribution
1,847.00
Daily Salary YEAR22,164.00
1 YEAR22,828.92
2 YEAR23,513.79
3 YEAR24,219.20
4 YEAR24,945.78
5
Employee
Cook 1 / Owner 14,300.00 1,275.00 286.00 286.00 1,847.00 22,164.00 22,828.92 23,513.79 24,219.20 24,945.78
Store Head / Owner PHP 550.00 PHP 14,300.00 PHP 1,275.00 PHP 675.00 PHP 1,950.00 PHP 23,400.00 PHP 24,102.00 PHP 24,825.06 PHP 25,569.81 PHP 26,336.91
Cook 2 Owner
Cashier/ / Owner 14,300.00
550.00 1,275.00
14,300.00 286.00
1,275.00 286.00
675.00 1,847.00
1,950.00 22,164.00
23,400.00 22,828.92
24,102.00 23,513.79
24,825.06 24,219.20
25,569.81 24,945.78
26,336.91
Cook1 /3 Owner
Cook / Owner 14,300.00
550.00 1,275.00
14,300.00 286.00
1,275.00 286.00
675.00 1,847.00
1,950.00 22,164.00
23,400.00 22,828.92
24,102.00 23,513.79
24,825.06 24,219.20
25,569.81 24,945.78
26,336.91
Staff2 // Owner
Cook Owner 14,300.00
550.00 1,275.00
14,300.00 286.00
1,275.00 286.00
675.00 1,847.00
1,950.00 22,164.00
23,400.00 22,828.92
24,102.00 23,513.79
24,825.06 24,219.20
25,569.81 24,945.78
26,336.91
Cook 3 / OwnerTOTAL PHP 85,800.00
550.00 PHP 14,300.00 7,650.00 PHP 1,716.00 PHP
1,275.00 1,716.00
675.00 PHP 11,082.00
1,950.00 PHP 132,984.00
23,400.00 PHP 136,973.52
24,102.00 PHP 141,082.73
24,825.06 PHP 145,315.21
25,569.81 PHP 149,674.66
26,336.91
Staff / Owner 550.00will increase14,300.00
Note : Annual Benefit Expenses by 3% per year. 1,275.00 675.00 1,950.00 23,400.00 24,102.00 24,825.06 25,569.81 26,336.91
TOTAL PHP 3,300.00 PHP 85,800.00 PHP 7,650.00 PHP 4,050.00 PHP 11,700.00 PHP 140,400.00 PHP 144,612.00 PHP 148,950.36 PHP 153,418.87 PHP 158,021.44
Note : Annual SSS Payable will increase by 3% per year.

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Quezon, Philippines
PHILHEALTH PAYABLE
Daily Salary Monthly Salary Employer Share Employee Share Total Contribution YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Employee
Store Head / Owner PHP 550.00 PHP 14,300.00 PHP 286.00 PHP 286.00 PHP 572.00 PHP 6,864.00 PHP 7,069.92 PHP 7,282.02 PHP 7,500.48 PHP 7,725.49
Cashier / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Cook 1 / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Cook 2 / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Cook 3 / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Staff / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Note : PhilHealth Payable will increase by 3% every year.
Table 5.14: PhilHealth Payable

PAG-IBIG PAYABLE
Daily Salary Monthly Salary Employer Share Employee Share Total Contribution YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Employee
Store Head / Owner PHP 550.00 PHP 14,300.00 PHP 286.00 PHP 286.00 PHP 572.00 PHP 6,864.00 PHP 7,069.92 PHP 7,282.02 PHP 7,500.48 PHP 7,725.49
Cashier / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Cooks 1 / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Cook 2 / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Cook 3 / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Staff / Owner 550.00 14,300.00 286.00 286.00 572.00 6,864.00 7,069.92 7,282.02 7,500.48 7,725.49
Note : Annual PAG-IBIG Payable will increase by 3% per year.
NET SALARY PAY Withholding Employee Share Benefits Per Month Annual Deductible Net Pay
Annual Gross Salary Total Deductible
Employee SSS Payable Philhealth Payable Pag-ibig Payable YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Store Head / Owner PHP 171,600.00 PHP 675.00 PHP 286.00 PHP 286.00 PHP 1,247.00 PHP 14,964.00 PHP 156,636.00 PHP 161,335.08 PHP 166,175.13 PHP 171,160.39 PHP 176,295.20
Cashier / Owner 171,600.00 675.00 286.00 286.00 1,247.00 14,964.00 156,636.00 161,335.08 166,175.13 171,160.39 176,295.20
Cook 1 / Owner 171,600.00 675.00 286.00 286.00 1,247.00 14,964.00 156,636.00 161,335.08 166,175.13 171,160.39 176,295.20
Cook 2 / Owner 171,600.00 675.00 286.00 286.00 1,247.00 14,964.00 156,636.00 161,335.08 166,175.13 171,160.39 176,295.20
Cook 3 / Owner 171,600.00 675.00 286.00 286.00 1,247.00 14,964.00 156,636.00 161,335.08 166,175.13 171,160.39 176,295.20
Staff / Owner 171,600.00 675.00 286.00 286.00 1,247.00 14,964.00 156,636.00 161,335.08 166,175.13 171,160.39 176,295.20
TOTAL PHP 1,029,600.00 PHP 4,050.00 PHP 1,716.00 PHP 1,716.00 PHP 7,482.00 PHP 89,784.00 PHP 939,816.00 PHP 968,010.48 PHP 997,050.79 PHP 1,026,962.32 PHP 1,057,771.19
Note: Annual Net Pay will increase by 3% every year.
Table 5.15: PAG - IBIG Payable
Table 5.16: Net Salary Pay
Table 5.17: 13th Month Pay
13 MONTH PAY
Employee
Store Head / Owner PHP
14,300.00 PHP 14,729.00 PHP 15,170.87 PHP 15,626.00 PHP 16,094.78
Cashier / Owner 14,300.00 14,729.00 15,170.87 15,626.00 16,094.78
Cook 1 / Owner 14,300.00 14,729.00 15,170.87 15,626.00 16,094.78
Cook 2 / Owner 14,300.00 14,729.00 15,170.87 15,626.00 16,094.78
Cook 3 / Owner 14,300.00 14,729.00 15,170.87 15,626.00 16,094.78
Staff / Owner 14,300.00 14,729.00 Senior
15,170.87 High School
15,626.00Department
16,094.78
TOTAL PHP 85,800.00 PHP ACCOUNTANCY,
88,374.00 PHP BUSINESS,
91,025.22 PHP AND MANAGEMENT
93,755.98 PHP 96,568.66
Note : 13th month pay will increase by 3% every year. Broas Sabrosas: Flavored Broas
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Quezon, Philippines
BROAS SABROSAS
Note 11 - Utilities Expenses
Monthly YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Electricity Bill PHP 2,800.00 PHP 33,600.00 PHP 34,272.00 PHP 34,957.44 PHP 35,656.59 PHP 36,369.72
Water Bill 500.00 6,000.00 6,120.00 6,242.40 6,367.25 6,494.59
Internet Bill 1,300.00 15,600.00 15,912.00 16,230.24 16,554.84 16,885.94
TOTAL PHP 4,600.00 PHP 55,200.00 PHP 56,304.00 PHP 57,430.08 PHP 58,578.68 PHP 59,750.26
Note: Annual Utilities Expense will increase by 2% per year.
Table 5.18: Utilities Expenses

BROAS SABROSAS
Note 12 - Depreciation Expenses
MACHINERIES AND EQUIPMENT
Machineries and Equipment UNIT COST QUANTITY TOTAL COSTS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Oven PHP 46,000.00 1 PHP 46,000.00 PHP 9,200.00 PHP 9,200.00 PHP 9,200.00 PHP 9,200.00 PHP 9,200.00
Mixer PHP 5,100.00 2 10,200.00 2,040.00 2,040.00 2,040.00 2,040.00 2,040.00
Mixing Bowl PHP 99.00 2 198.00 39.60 39.60 39.60 39.60 39.60
Measuring Cup PHP 129.00 2 258.00 51.60 51.60 51.60 51.60 51.60
Measuring Spoon PHP 89.00 2 178.00 35.60 35.60 35.60 35.60 35.60
Tongs PHP 30.00 3 90.00 18.00 18.00 18.00 18.00 18.00
Spatula PHP 24.00 3 72.00 14.40 14.40 14.40 14.40 14.40
Strainer PHP 35.00 2 70.00 14.00 14.00 14.00 14.00 14.00
Piping Bag PHP 60.00 3 180.00 36.00 36.00 36.00 36.00 36.00
Parchment Paper PHP 24.00 10 240.00 48.00 48.00 48.00 48.00 48.00
Serving Plate PHP 89.00 5 445.00 89.00 89.00 89.00 89.00 89.00
Laptop PHP 20,190.00 1 20,190.00 4,038.00 4,038.00 4,038.00 4,038.00 4,038.00
TOTAL OFFICE EQUIPMENT DEP. EXP. PHP 78,121.00 PHP 15,624.20 PHP 15,624.20 PHP 15,624.20 PHP 15,624.20 PHP 15,624.20
Note : Annual Depreciation for Office Equipment is 20% per year.

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Quezon, Philippines
Table 5.19: Depreciation Expenses (Machineries and Equipment)
Table 5.20: Depreciation Expenses (Furniture and Fixtures)
TOTAL DEPRECIATION EXPENSE PHP 26,274.80 PHP 26,274.80 PHP 26,274.80 PHP 26,274.80 PHP 26,274.80
BROAS SABROSAS
Note 14 - Income Tax
Net Income Before Tax PHP 1,156,564.97 PHP 1,245,400.05 PHP 1,327,737.65 PHP 1,414,312.59 PHP 1,505,339.97
Less: Income Tax - - - - -
NET INCOME AFTER TAX PHP 1,156,564.97 PHP 1,245,400.05 PHP 1,327,737.65 PHP 1,414,312.59 PHP 1,505,339.97
graduated based onNote
net13income before
- Furniture tax
and Fixtures
FURNITURES AND FIXTURES UNIT COST QUANTITY TOTAL COSTS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Table 5.21: PHP
Cash Register Total Depreciation
8,999.00 1 PHP Expenses
8,999.00 PHP 1,799.80 PHP 1,799.80 PHP 1,799.80 PHP 1,799.80 PHP 1,799.80
Cahier Counter Table PHP 6,000.00 1 6,000.00 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Office Table PHP 3,500.00 1 3,500.00 700.00 700.00 700.00 700.00 700.00
Office Chair PHP 1,000.00 1 1,000.00 200.00 200.00 200.00 200.00 200.00
Glass Cabinet PHP 7,000.00 2 14,000.00 2,800.00 2,800.00 2,800.00 2,800.00 2,800.00
Shelves PHP 1,500.00 3 4,500.00 900.00 900.00 900.00 900.00 900.00
Baking Table PHP 4,999.00 1 4,999.00 999.80 999.80 999.80 999.80 999.80
Plastic Table PHP 2,000.00 1 2,000.00 400.00 400.00 400.00 400.00 400.00
Kitchen Cabinet PHP 4,000.00 2 8,000.00 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00
Light bulb PHP 51.00 5 255.00 51.00 51.00 51.00 51.00 51.00
TOTAL FURNITURES AND FIXTURES DEP. EXP. PHP 53,253.00 PHP 10,650.60 PHP 10,650.60 PHP 10,650.60 PHP 10,650.60 PHP 10,650.60
Note : Annual Depreciation for Furnitures and Fixtures is 20% per year.

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Quezon, Philippines
Table 5.22: Income Tax
Table 5.23: Value Added Tax Expense
BROAS SABROSAS
Note 15 - Value Added Tax Expense
Gross Profit PHP 2,792,954.40 PHP 2,932,602.12 PHP 3,079,232.23 PHP 3,233,193.84 PHP 3,394,853.53
Multiply by 3% 3% 3% 3% 3%
VALUE ADDED TAX EXPENSE PHP 83,788.63 PHP 87,978.06 PHP 92,376.97 PHP 96,995.82 PHP 101,845.61

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Quezon, Philippines
BROAS SABROSAS
Statement of Financial Performance
For Year 2021 - 2022
yr 1 yr 2 yr 3 yr 4 yr 5 Note
Sales 4,752,720.00 4,990,356.00 5,239,873.80 5,501,867.49 5,776,960.86 1
Cost of Sales 1,959,765.60 2,057,753.88 2,160,641.57 2,268,673.65 2,382,107.34 2
Gross Profit 2,792,954.40 2,932,602.12 3,079,232.23 3,233,193.84 3,394,853.53

Permits & Licences 9,768.00 6,488.00 6,488.00 6,488.00 6,488.00 3
Advertising Expenses 2,050.00 450.00 450.00 450.00 450.00 4
Supplies Expenses 3,003.00 2,910.06 2,968.26 3,027.63 3,088.18 5
Sanitation Expenses 4,421.00 4,553.63 4,690.24 4,830.95 4,975.87 6
Rent Expenses 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 7
Salaries Expenses 1,037,400.00 1,089,270.00 1,143,733.50 1,200,920.18 1,260,966.18 10
Benefits Expenses 132,984.00 136,973.52 141,082.73 145,315.21 149,674.66 10
Utilities Expenses 55,200.00 56,304.00 57,430.08 58,578.68 59,750.26 11
Renovation Expense 5,500.00 - - - - 9
Depreciation Expenses 26,274.80 26,274.80 26,274.80 26,274.80 26,274.80 12 to 13
Business Tax Expense 83,788.63 87,978.06 92,376.97 96,995.82 101,845.61 15
Total Operating Expense 1,636,389.43 1,687,202.07 1,751,494.57 1,818,881.25 1,889,513.56
Net Income Before Tax 1,156,564.97 1,245,400.05 1,327,737.65 1,414,312.59 1,505,339.97
Less: Income Tax Expense - - - - - 14
Net Income After Tax 1,156,564.97 1,245,400.05 1,327,737.65 1,414,312.59 1,505,339.97
Table 5.24: Statement of Financial Performance

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Quezon, Philippines
BROAS SABROSAS
Statement of Changes in Equity
For Year 2021 - 2022
Year 1 Year 2 Year 3 Year 4 Year 5
Owner's Equity, Beginning 540,000.00 1,638,736.72 2,821,866.76 4,083,217.53 5,426,814.49
Add : Net Income After Tax 1,156,564.97 1,245,400.05 1,327,737.65 1,414,312.59 1,505,339.97
Total 1,696,564.97 2,884,136.77 4,149,604.42 5,497,530.12 6,932,154.46
Less : Withdrawals 57,828.25 62,270.00 66,386.88 70,715.63 75,267.00
Owner's Equity, Ending 1,638,736.72 2,821,866.76 4,083,217.53 5,426,814.49 6,856,887.46
Table 5.25: Statement of Changes in Equity

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Quezon, Philippines
BROAS SABROSAS
Statement of Financial Position
For Year 2021 - 2022
Asset yr 1 yr 2 yr 3 yr 4 yr 5
Cash 1,571,426.15 2,785,020.43 4,077,044.90 5,451,535.51 6,912,733.07
Prepaid Rent 46,000.00 46,000.00 46,000.00 46,000.00 46,000.00
Total Current Asset 1,617,426.15 2,831,020.43 4,123,044.90 5,497,535.51 6,958,733.07
Machineries and Equipment 78,121.00 78,121.00 78,121.00 78,121.00 78,121.00

Accumulated Depreciation (15,624.20) (31,248.40) (46,872.60) (62,496.80) (78,121.00)
Furnitures and Fixtures 53,253.00 53,253.00 53,253.00 53,253.00 53,253.00
Total Non-Current Asset 105,099.20 78,824.40 52,549.60 26,274.80 -
Total Asset 1,722,525.35 2,909,844.83 4,175,594.50 5,523,810.31 6,958,733.07
Liabilities and Owner's Equity

Liabilities - - - - -
Business Tax Payable 83,788.63 87,978.06 92,376.97 96,995.82 101,845.61
Income Tax Payable - - - - -
Total Liabilities 83,788.63 87,978.06 92,376.97 96,995.82 101,845.61
Owner's Equity
Capital 1,638,736.72 2,821,866.76 4,083,217.53 5,426,814.49 6,856,887.46
Total Owner's Equity 1,638,736.72 2,821,866.76 4,083,217.53 5,426,814.49 6,856,887.46
Total Liabilities and Owner's Equity 1,722,525.35 2,909,844.83 4,175,594.50 5,523,810.31 6,958,733.07
Table 5.26: Statement of Financial Position

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Quezon, Philippines
BROAS SABROSAS
Statement of Cash Flows
For Year 2021 - 2022
OPERATIONS yr 1 yr 2 yr 3 yr 4 yr 5
Net Income After Tax 1,156,564.97 1,245,400.05 1,327,737.65 1,414,312.59 1,505,339.97
Add/(Less): Adjustment for
Depreciation 26,274.80 26,274.80 26,274.80 26,274.80 26,274.80
Tax Payable - - - - -
Prepaid Rent (46,000.00) - - - -
Net Cash Flows from Operations 1,220,628.40 1,275,864.28 1,358,411.36 1,445,206.23 1,536,464.56
INVESTING ACTIVITIES
Cash Receipt from
Sale of Property and Equipment
Cash Paid for Purchase of
Equipment and Machinery (78,121.00) - - - -
Furniture and Fixtures (53,253.00) - - - -
Net Cash Flows from Investing Activities (131,374.00) - - -
FINANCING ACTIVITIES
Cash receipts from
Owner's Investment 540,000.00
Owner's Withdrawal (57,828.25) (62,270.00) (66,386.88) (70,715.63) (75,267.00)
Net Cash Flows from Financing Activities 482,171.75 (62,270.00) (66,386.88) (70,715.63) (75,267.00)
Net Increase in Cash 1,571,426.15 1,213,594.28 1,292,024.47 1,374,490.60 1,461,197.56

Cash At the Beginning of the Year - 1,571,426.15 2,785,020.43 4,077,044.90 5,451,535.51
Cash at the End of the Year 1,571,426.15 2,785,020.43 4,077,044.90 5,451,535.51 6,912,733.07
Table 5.27: Statement of Cash Flows
FINANCIAL RATIO
YEAR 1 YEAR 2
Current Assets 1,617,426.15 2,831,020.43
Current Ratio 19.30 32.18
Current Liabilities 83,788.63 87,978.06
Working Capital Current Assets - Current Liabilities 1,533,637.52 1,533,637.52 2,743,042.36 2,743,042.36
Total Liabilities 83,788.63 87,978.06

Debt Ratio 0.05 0.03
Total Assets 1,722,525.35 2,909,844.83
Total Assets 1,722,525.35 2,909,844.83

Assets-to-Equity Ratio 1.05 1.03
Owner's Equity 1,638,736.72 2,821,866.76

Debt-to-Equity Ratio 0.05 0.03
Owner's Equity 1,638,736.72 Senior High School
2,821,866.76 Department

Page | 49

Quezon, Philippines
Table 5.28: Financial Ratio (Year 1 and Year 2)
FINANCIAL RATIO
YEAR 3 YEAR 4
Current Assets 4,123,044.90 5,497,535.51
Current Ratio 44.63 56.68
Current Liabilities 92,376.97 96,995.82
Working Capital Current Assets - Current Liabilities 4,030,667.93 4,030,667.93 5,400,539.69 5,400,539.69

Debt Ratio 0.02 0.02
Total Assets 4,175,594.50 5,523,810.31
Total Assets 4,175,594.50 5,523,810.31

Assets-to-Equity Ratio 1.02 1.02
Owner's Equity 4,083,217.53 5,426,814.49

Debt-to-Equity Ratio 0.02 0.02
Owner's Equity 4,083,217.53 5,426,814.49
Table 5.29: Financial Ratio (Year 3 and Year 4)

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Quezon, Philippines
FINANCIAL RATIO
YEAR 5
Current Assets 6,958,733.07
Current Ratio 68.33
Current Liabilities 101,845.61
Working Capital Current Assets - Current Liabilities 6,856,887.46 6,856,887.46
Total Liabilities 101,845.61

Debt Ratio 0.01
Total Assets 6,958,733.07
Total Assets 6,958,733.07

Assets-to-Equity Ratio 1.01
Owner's Equity 6,856,887.46
Total Liabilities 101,845.61

Debt-to-Equity Ratio 0.01
Table 5.29: Financial Ratio (Year 5)
AVERAGE RATE OF RETURN

YEAR 1 YEAR 2
Net Income 1,156,564.97 1,245,400.05
2.14 2.31
Net Investment 540,000.00 540,000.00
YEAR 3 YEAR 4
Net Income 1,327,737.65 1,414,312.59
2.46 2.62
Net Investment 540,000.00 540,000.00
YEAR 5
Net Income 1,505,339.97
2.79
Net Investment 540,000.00
Table 5.30: Average Rate of Return

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Quezon, Philippines
RETURN ON INVESTMENT
YEAR 1 YEAR 2
Owner's Equity 1,638,736.72 2,821,866.76
1.42 2.27
Net Income 1,156,564.97 1,245,400.05
YEAR 3 YEAR 4
Owner's Equity 4,083,217.53 5,426,814.49
3.08 3.84
Net Income 1,327,737.65 1,414,312.59
YEAR 5
4.62
Net Income 1,505,339.97
Table 5.30: Return on Investment
BROAS SABROSAS
FINANCIAL RATIOS Year 1 Year 2 Year 3 Year 4 Year 5
Current Ratio 19.30 32.18 44.63 56.68 68.33
Working Capital 1,533,637.52 2,743,042.36 4,030,667.93 5,400,539.69 6,856,887.46
Debt Ratio 0.05 0.03 0.02 0.02 0.01
Asset-to-Equity Ratio 1.05 1.03 1.02 1.02 1.01
Debt -to-Equity Ratio 0.05 0.03 0.02 0.02 0.01
Average Rate Of Return 2.14 2.31 2.46 2.62 2.79
Return on Investment 1.42 2.27 3.08 3.84 4.62
Table 5.31: Financial Ratio – Tabular Form

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Quezon, Philippines
BROAS SABROSAS
Statement of Changes in Partnership's Equity
For Year 2021 - 2022
Year 1 Year 2 Year 3 Year 4 Year 5
Owner's Equity, Beginning 540,000.00 1,089,368.36 1,680,933.38 2,311,608.77 2,983,407.25
Add : Net Income After Tax 578,282.48 622,700.02 663,868.83 707,156.29 752,669.98
Total 1,118,282.48 1,712,068.38 2,344,802.21 3,018,765.06 3,736,077.23
Less : Withdrawals 28,914.12 31,135.00 33,193.44 35,357.81 37,633.50
Owner's Equity, Ending 1,089,368.36 1,680,933.38 2,311,608.77 2,983,407.25 3,698,443.73
Table 5.32: Statement of Changes in Partner’s Equity

BROAS SABROSAS
Statement of Cash Flows
For Year 2021 - 2022
OPERATIONS yr 1 yr 2 yr 3 yr 4 yr 5
Net Income After Tax 578,282.48 622,700.02 663,868.83 707,156.29 752,669.98
Add/(Less): Adjustment for
Depreciation 13,137.40 13,137.40 13,137.40 13,137.40 13,137.40
Tax Payable - - - - -
Prepaid Rent (23,000.00) - - - -
Net Cash Flows from Operations 610,314.20 637,932.14 679,205.68 722,603.12 768,232.28
INVESTING ACTIVITIES
Cash Receipt from
Sale of Property and Equipment
Equipment and Machinery (39,060.50) - - - -
Furniture and Fixtures (26,626.50) - - - -
Net Cash Flows from Investing Activities (65,687.00) - - -
FINANCING ACTIVITIES
Cash receipts from
Partner's contribution 90,000.00
Owner's Withdrawal (28,914.12) (31,135.00) (33,193.44) (35,357.81) (37,633.50)
Net Cash Flows from Financing Activities 61,085.88 (31,135.00) (33,193.44) (35,357.81) (37,633.50)
Net Increase in Cash 605,713.08 606,797.14 646,012.24 687,245.30 730,598.78

Cash At the Beginning of the Year - 605,713.08 1,212,510.21 1,858,522.45 2,545,767.75
Cash at the End of the Year 605,713.08 1,212,510.21 1,858,522.45 2,545,767.75 3,276,366.53
Table 5.33: Statement of Changes in Partner’s Cash Flow

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Quezon, Philippines
BROAS SABROSAS
Statement of Financial Position
For Year 2021 - 2022
Asset yr 1 yr 2 yr 3 yr 4 yr 5
Cash 605,713.08 1,212,510.21 1,858,522.45 2,545,767.75 3,276,366.53
Prepaid Rent 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00
Total Current Asset 628,713.08 1,235,510.21 1,881,522.45 2,568,767.75 3,299,366.53
Machineries and Equipment 39,060.50 42,545.00 42,545.00 42,545.00 42,545.00

Furnitures and Fixtures 2,250.00 2,250.00 2,250.00 2,250.00 2,250.00
Accumulated Depreciation (450.00) (900.00) (1,350.00) (1,800.00) (2,250.00)
Total Non-Current Asset 33,048.40 28,270.80 20,008.70 11,746.60 3,484.50
Total Asset 661,761.48 1,263,781.01 1,901,531.15 2,580,514.35 3,302,851.03
Liabilities and Owner's Equity

Liabilities - - - - -
Income Tax Payable - - - - -
Total Liabilities 41,894.32 43,989.03 46,188.48 48,497.91 50,922.80
Owner's Equity
Capital 1,089,368.36 1,680,933.38 2,311,608.77 2,983,407.25 3,698,443.73
Total Owner's Equity 1,089,368.36 1,680,933.38 2,311,608.77 2,983,407.25 3,698,443.73
Total Liabilities and Owner's Equity 1,131,262.68 1,724,922.41 2,357,797.25 3,031,905.15 3,749,366.53
Table 5.34: Statement of Financial Position Partner’s Balance

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Quezon, Philippines
FINANCIAL ANALYSIS EXPLANATION
 Current Ratio – In year 1, 19.30% is the ability of the business to pay the current
liabilities using the current assets and increase in year 2 with 32.18%. In the 3rd
year, it will rise into 44.63%, in year 4 will be 56.68%, in the 5th year it will
increase into 68.33%.
 Working Capital – The working capital of Broas Sabrosas is ₱1,533,637.52,
indicating that the business has more current assets than current liabilities.
 Debt Ratio – In the first year of business, it has a Debt Ratio of 0.05%, in the
year 2, it has 0.03%. The third year it reduced into 0.02%, in year 4 it was the
same with 0.02% and in the 5th year, it has a debt ratio of 0.01%. This shows that
the business has fewer liabilities as compared to the creditors’ equity.
 Asset-to-Equity Ratio – The business has high asset to equity ratio with 1.05%,
this indicates that the business’ equity has a higher share than the liabilities in
asset.
 Debt-to-Equity Ratio – The debt ratio of Broas Sabrosas is 0.05% which is less
than the basis of 1. This means that the equity of the company exceed its
liabilities.
 Average Rate of Return – The annual amount of cash flow for year 1 is 2.14, for
year 2 is 2.31, year 3 is 2.46, year 4 is 2.62, and year 5 is 2.79. With a total of
12.32, the business is expected to last.

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Quezon, Philippines
 Return of Investment – The Return on Investment is 1.42 thus making the
business having a positive net income. On the following years, on year 2 it has
2.27, on year 3, 3.08, 3.84 for the year 4, and for the 5th year is 4.62. Thus giving
the business 15.23 annual return of it. It is expected to last.

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Quezon, Philippines
CHAPTER VI
SOCIO - ECONOMIC STUDY
A. Contribution to Economy
The business strives to be responsible by offering high-quality food products and
ensuring clients' happiness. Furthermore, as responsible business owners in the sector, the
entrepreneurs pledge to pay the appropriate taxes to the government in order to contribute
to the progress of the community. Broas Sabrosas commits to pay the necessary amount
of tax in support of prospective government projects, particularly those involving
community development.
As the firm begins production in the market, it is predicted that it will become recognized
across the area, and consumers will desire more of this product, creating an opportunity
for individuals interested in franchising the business. As this firm expands, it will assist
those individuals who are in need of job opportunities, therefore improving the
economy's life.
B. Contribution to Employment

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Quezon, Philippines
The Broas Sabrosas will require additional staff with expertise or knowledge with this
line of business in the future. This will be an excellent chance for those who are now
unemployed and will contribute to the reduction of the unemployment rate, which has
become one of the primary concerns for the public as a result of the present situation. As
a business, Broas Sabrosas may contribute to the local economy by hiring employees for
as long as the business requires them to conduct operations. A job is necessary for every
family to satisfy their fundamental necessities. Broas Sabrosas will guarantee that an
employee's benefits and salary are within the community's established wage rate.
C. Contribution to Environment
Broas Sabrosas will guarantee that they contribute to environmental conservation in the
greatest viable manner. Although the business will utilize some plastic, it will guarantee
that it is disposed of responsibly. The remaining materials that will be used will be
ecologically friendly. To ensure community cleanliness, the business will practice waste
segregation and will have three receptacle containers for biodegradable, non-
biodegradable, and reusable garbage. The separated wastes will be appropriately disposed
of with the assistance of local officials who manage the community's trash. Additionally,
Broas Sabrosas ensures that energy conservation is observed and that all energy-
consuming equipment is disconnected when not in use. Before leaving the store premises,
employees will check that these equipment are switched off. The business will also
ensure that the protocols given by the government because of the COVID-19 pandemic
will be followed.

Page | 58

Quezon, Philippines
Figure 6.1: Contribution Fish Bone Diagram


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Page | 1

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

A Feasibility Study submitted to the Faculty Members of

In partial fulfilment of the requirements for the

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

as a partnership. In most forms of partnerships, each partner has unlimited accountability

establish the business.

OWNERS CONTRIBUTION SOURCE OF CAPITAL

Lopez, Keziah ₱ 90,000.00 Personal Savings

Burgos, Chesca ₱ 90,000.00 Personal Savings

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

Magsumbol, Alliyah ₱ 90,000.00 Personal Savings

Baliton, Lovely ₱ 90,000.00 Personal Savings

Sevilla, Tricia Mae ₱ 90,000.00 Personal Savings

Dayon, Ian ₱ 90,000.00 Personal Savings

Table 4.1: Capitalization

The Broas Sabrosas explains the business's organizational structure. Each

responding to consumer inquiries on Broas Sabrosas' social media pages.

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

Figure 4.1: Organizational Chart

employment are stated in the following table.

POSITION QUANTITY RESPONSIBILITY REQUIREMENTS

STOREHEAD 1  Responsibiliti  Finished a degree in

/ OWNER es include any business related

overseeing the four year course

business's  Willing to undergo

operation.  Has good leadership

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

maintaining  Pleasing personality

the store's  With at least 2yrs

operations. work experienced

with any related task

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

STAFF / 1  Responsibiliti  Atleast 18 years old

OWNER es include and above

managing and  Must be a high

operating the school graduate

online  Is fluent in English

business. and Tagalog

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

the online skills

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

CASHIER / 1  Assists  Atleast High School

OWNER consumers Graduate

and clarifies  At Least 18 years

their product- old and above

related  Customer service or

inquiries. cashier experience

Senior High School Department

MANUEL S. ENVERGA UNIVERSITY FOUNDATION CANDELARIA, INC.

cleaning the personality

store prior to  Hard working and

closing at the dedicated to work