A.

Name of the Enterprise

Fruit Bouquets- we choose this as our brand name in our business because our
products are contains different kinds of fruits.

B. Location

The geographical area of dispersion and the distribution of the products are at
buhangin, Davao city, 8000 Philippines, Approximately 1 kilometer away from Francisco
bangoy International Airport Davao city. We have lower cost in terms of transportation
because our suppliers are all in Davao city.

C. Descriptive Definition of the Project

Primarily the project is intended for the individuals who are belongs to the
number of visitors whether local or international coming from and going out from the city
of Davao, the passengers route in the airport, the student and staff of Jose Maria
College and hopefully the resident along the Davao airport and not in line with any other
government advocacies. However, this may support a healthy living which is aimed by
the Department of Health. It does not support any political aspects of the government or
other organizations in the community.

Fruit Bouquets is considered as Pasalubong Center, significantly acts a helper

for the people who does not have enough time to do shopping to buy a pasalubong to
their love ones instead they can easily drop by and buy some fruits for pasalubong in
our store. It will be managed by a partnership who loves fruits. Through that, the target
market is rest assured that the owners of the business adhere to what they need to get
full satisfaction. It is a very good idea to put up a fruit bouquet business in the Davao
airport because it also gives the people more time and effort will be saved by doing
shopping to buy some stuff and perhaps, it could be spent on other activity works.

This project will be managed by the people who know the feeling of being
unsatisfied with what results they get from other fruit stand businesses. The owners
thought of more advantages and benefits like healthy lifestyle of the customers.

1
D. Project Long- Range Objectives

The purposes of this project are the following:

 To be able to expand the business in other areas of the community in its five
operating years.
 To provide good quality of products that gains at least 50% of loyal customers in
a year.
 To dominate the market in the community and define the edge of fruit bouquet
business (pasalubong center) from its competitor along the Davao airport in five
years time.
 To establish a good brand to customers and gain brand loyalty in its five years of
operation by prevailing a socially responsible enterprise.
 To increase profits in one a year’s time.
E. Feasibility criteria

The most important guidelines used to judge this feasibility study are the demand
of our customers since our main target here are the passengers/travelers and tourist of
the airport, another one is the supply situations, since our suppliers are all in Davao city
we can avail discounts to them then it will be good to our business to lessen the cost of
purchasing the products. Based on our financial aspect, this project is profitable since
we have high demand in the market. Our project doesn’t consider as a great impact in
the economy but it has a greatest impact among healthy lifestyle of individuals.

F. highlights of the project

 History
This project is composed of five (5) members; the owners decided to put
up a fruit stand business and named it as “fruit bouquet” it is near the airport
since there are a lot of travelers there, students, even the people who live there
and tourist as well. The owners consider this business also as a pasalubong
center so they will able to bring something to eat which is nutritious and
something to bring also for their love ones, than junk foods or in any fast food
they buy anywhere. We offer fresh fruits so our customer will satisfy our product.

2
 We the owners believe that it has a potential to sell standardize product to
Global Markets, though it is not easy to export since our product is perishable,
but it find ways since we have technology like telecommunication, internet and
world wide web, and even transportation through containerization, this is based
on the low-cost strategy on a global scale.
This project also has a potential in international market, we can put a
branch outside Philippines.
Since we are new entrants of fruit industry, we focused first in local
market, to enhance our ability by selling good quality of products in local area
and profitability as well in order to have expansion of our business for the
succeeding years, and be able to implement our plan in selling globally and
internationally.
 Project timetable and status

This refer to the Gantt chart in management aspect, the pre-operating

activities start in the year 2014 which cover only 1 year, the operating activities is
2015 cover 1 year also and the post operating activities covers from 2016 to
2017.

 Nature of the industry

As a new entrant to this type of business we are targeting this opportunity
to offer good quality of product to our customers. The powers of buyers are
strong since our targets are the travelers, tourist, students, and even the ordinary
people who live there. The powers of supplier are strong because in every
product offered we have different supplier, though they have the ability of
providers of inputs to determine the price and terms of supply. And our greatest
challenge here is the threat of competition. Competitors allows this type of
business to not settle for what is available but strive to create more possibilities
of providing more to the changing preferences of the public.

3
 We are offered different kind of fruits to our customers, and we assure
every fruit we received to our suppliers are fresh fruits in order to have a good
quality product that satisfies our customers. Every price of our product are
affordable to everyone therefore we estimated it as a high demand in the market.
Our suppliers are all in Davao, so we don’t have enough problems in our
supplier, unless if there are times that they don’t have stock in a certain fruit,
because since our products are seasoned, we expect to encounter problems
such as lack of stock to our supplier in other fruits, over ripped due to season.
Another problem is that although Fruit stand business is a good business but
customers are diverse because of the many competitors available in this kind of
business.

 Mode of financing

Since our business are composed of five members, we contributed P

300,000 each to come up P 1,500,000 as our initial capital in our business, we
choose this kind of financing because if we borrow, we cannot assure that our
business can reach a high profit that can sustain our liability since we are just a
beginner business man.

 Investment cost

Our estimated budget for project cost is P 497,256.40; this is for the
construction of the business and purchases of the materials, supplies and
equipments need in the business. To start the operation of our business our
budget in purchasing the products is P 986,547.00 with the total cost of P
1,483,803.40, but our investment is P 1,500,000 this because the excess amount
is for other cost needed in the business operations.

4
G. Major assumptions and Summary of findings and conclusion on the following:

1. Market Feasibility
The brand name of our business is Fruit Bouquet it is designed also as a
pasalubong center; this is located at buhangin Davao city 1km away from
Francisco Bangoy International Airport, Davao city. Our estimated total target
market here is 28,310 which our main targets are travelers of local and
international. We offer different kind of fruits and each fruit has its demand which
is divided into 12 to get demand per dozen, our suppliers are all in Davao city
and each fruit we offer has different supplier that is why we don’t have pay high
cost of ordering/delivering the product, we have many competitors also there that
offers same product to us, these are the apple jo, golden fruits and etc., our price
of every product are really affordable to everyone this is design in order that
every people could afford our fresh fruit products, then our marketing strategy are
signage through visual graphics to introduce our business and products into
public, 3-5% discount to the wholesalers, online/internet marketing, word of
mouth or personal selling and tarpaulins that serves as posters display outside
the store.

2. Technical Feasibility
Our products are Banana, Apple, Mangosteen, Durian, Pomelo and dried
fruit candies; these are the products that are rich in vitamins and nutrients that
good to our health, our production process are like this: plant and harvest from
farm, then, buy from suppliers, next display in the fruit store, and sell to the
customers, then, transaction process, after inventory, go for waste disposal,
waste segregation, finally, disposal back to the farmland for fertilization. Our
business location is near F.bangoy International airport, Davao city which our
main target are the travelers/passengers of local and international. The
computation of utilities consumption for light is we summed up the electric
equipment together with its kWh then multiply to kWh/ peso, the estimated
utilities expense is 26,176.00.

5
3. Financial Feasibility
Our financial aspects in terms of operating cash requirements includes
utilities expense, lease payments, repairs and maintenance, and office supplies
with the assumptions increase of 5 percent every year starting year two. In terms
of profitability, our net profit for year one is 29.97% however, it decreases for the
next year while increases in the succeeding year. Thus, our cash flow statement
incurred a negative net cash flow for the year 1-3 but because of our cash
balance beginning we get a positive result on the net cash balance beginning,
though it was not a good result for the first three years we gain it back for the
next two years of operations and hopefully for the next succeeding year of a
business.
4. Socio- economic Feasibility
The AQUINO administration is working to reduce the government deficit and
obtained several ratings upgrades on sovereign debt so that the Philippines is
now close to investment grade. However, the lack of government spending,
especially on infrastructure, was one of several factors leading the government to
announce a stimulus effort and increased public spending on infrastructure in
2012. It is one way of helping our economy to not only depend on the high
chemical foods which is dangerous to our health, our business can help to
develop the agricultural aspects in our economy they will be both beneficial to
humans, animals as well as to mother earth. It also gives a lot of nutrition to our
body which will lessen the amount of sick in our country. it is very convenient to
eat since it is a hand carries foods.
5. Management Feasibility
The management structure of our business will start from the manager
who is the owner also, followed by the cashier and the laborers or workers.
Everyone is assigned for the multi-tasking work; they should also have
knowledge on managing the business and other aspects of the operations. The
salaries are based on the minimum wage and the kinds of work they are
handling, thus, the manager don’t receive their salary because they are the
owner of the business.

6
 Market Study

1. Product Description

Fruit bouquet is designed as a Pasalubong Center which is a comprehensive,

accessible, affordable and quality fruits for all. Our reason of choosing this business is
that by and large each and everyone in this world love fruits, though there are
exceptions. We still will have a majority folks who love fruits. It is something which has
both taste and nutrients which are good in our body. Thus, the group thought of this kind
of business for practicability and demand from the target market. It will be a good help
for meeting the customer’s expectations through satisfying their needs and wants.

Fruit bouquet provides good quality of fruit products that are available to all
people regardless of sex, economic status, race, culture, age, lifestyle, nationality and
religion. But our main focus for the target market are those individuals who are belongs
to the number of visitors whether local or international coming from and going out from
the city of Davao, the passenger route in the airport, the student and staff of Jose Maria
College, and hopefully the resident of Porte Verde subdivision near the Davao airport.

The geographical area of dispersion and the distribution of the product are at
Buhangin, Davao City, 8000 Philippines. Approximately 1kilometers away from
Francisco Bangoy International Airport, Davao City and 5kilimeters away from Jose
Maria College, Davao City.

Target Market Population Market Share Target Market

Percentage
Local & International Tourist 200000 10% 20000
Porte Verde Subdivision 1000 25% 250
Jose Maria College Student 8000 7% 560
& staff
Passenger route in Buhangin 150000 5% 7500
Airport
Total 359000 8% 28310

7
 2. Demand Analysis / by dozen

Products Year1 Year2 Year3 Year4 Year5

Apple 590 637 713 842 1035
Banana 236 255 288 340 418
Pomelo 354 382 432 510 627
Mangosteen 118 132 144 170 209
Durian (all variety) 354 382 432 510 627
Candies/Dried fruits 590 637 713 842 1035
Increase in rate 0% 8% 12% 16% 20%
Product Total Target Percent of share Total
Market
Apple 28310 25% 7078
Banana 28310 10% 2831
Pomelo 28310 15% 4246
Mangosteen 28310 5% 1415
Durian (all variety) 28310 15% 4246
Candies & Dried 28310 25% 7078
Fruits

Product Year 1 Year 2

Apple 7078/12=590 590*8%+590=637
Banana 2831/12=236 236*8%+236=255
Pomelo 4246/12=354 354*8%+354=382
Mangosteen
Year3 Year41415/12=118 Year5 118*8%+118=132
Durian (all variety)
637x12%+637=713 4246/12=354
713x16%+713=842 354*8%+354=382
842x20%+842=1035
Candies / Dried Fruits 288x16%+288=340
255x12%+255=288 7078/12=590 590*8%+590=637
340x20%+340=418
382x12%+382=432 432x16%+432=510 510x20%+510=627
132x12%+132=144 144x16%+144=170 170x20%+170=209 8
382x12%+382=432 432x16%+432=510 510x20%+510=627
637x12%+637=713 713x16%+713=842 842x20%+842=1035
 In this analysis we evaluate the size, nature, and growth of total demand for the
product. The market demand of our product states the relationship between the demand
for the product and its determinants. Its shows above the projected demand of the
customer and our target market for the product. Our demand analysis are based on the
total number of our target market multiplying it to the percentage of share that they will
buy the specific products and divide it by dozen which gives the total number of demand
each year. For the consecutive year, we multiply demand of the products for year 1 to
the increase of rate and add back the total demand for year 1 to get the total demand
for year 2 and so on.

3. Supply Analysis

Products Supplier Location

Apple New Greengold Commercial Unit 1A Kalaw hils
Corporation Tandang Sora, Davao City
Banana Davao Five Star Banana 50-Lougemar Village, Old
Corporation Airport Road, Sasa, Davao City
Pomelo Hyssop enterprises/davao heritage Bangkal, Davao City
sculpture
Mangosteen Davao Fresh Fruits 2F, SJRDC Building, San Pedro
Seasonal Fruits Street, Davao City
Durian (all variety) MMCG Tradelanes Int’l Ma-a, Davao City
Inc. Philippines
Fruits Candies and Lola Abon’s durian candies 23 San Miguel Village,
Dried Fruits Matina Davao City
Supply analysis increase an organization’s market intelligence by gathering and
analyzing information about supply options to support accurate and fact-based

9
procurement decision making. Supply analysis considers all aspect of the decision, not
just cost and quality and is a dynamic, ever-changing process that requires constant
managerial efforts and revisions.

4. Competitors Analysis

Competitors Location Products Store Hours

Vergie “Sweet and Deho, Buhangin Pomelo, Durian, 5am- 9pm Everyday
Fresh Pomelo Highway Davao City Candies,
Mangosteen
candies
Apple JO Deho, Buhangin Pomelo,Durian 4am- 9pm Everyday
Highway Davao City frozen (candies,jam)
Mangosteen
Golden Fruits Laverna, Buhangin Pomelo, 5am- 9pm Everyday
Davao City Durian
(candies,frozen)
Mangosteen
(candies)

5. Price Analysis

10
Products Year1 Year2 Year3 Year4 Year5
Fugi Apple ₱12.00each ₱17.00each ₱25.00each ₱30.00each ₱35.00each
(regular size)
Apple (special) ₱17.000each ₱25.00each ₱30.00 ₱35.00each ₱40.00each
Banana ₱38/kls. ₱45/kls. ₱50/kls. ₱65/kls. ₱75/kls.
(cavandish reg.)
Banana (special. ₱42/kls ₱50/kls ₱60/kls ₱70/kls ₱80/kls
Pomelo ₱38/kls. ₱40/kls. ₱50/kls. ₱60/kls. ₱70/kls.
Mangosteen ₱52/kls. ₱55/kls. ₱65/kls. ₱75/kls. ₱85/kls.
Durian (all variety ₱38/kls. ₱40/kls. ₱50/kls. ₱60/kls. ₱70/kls.
special)
Durian (reg.) ₱42/kls ₱45/kls ₱55/kls ₱50/kls ₱65/kls
Fruit ₱23/pack ₱30/pack ₱40/pack ₱40/pack ₱50/pack
Candies/Dried
Fruits

The impact of price changes and sales volume is not intuitive. Due to variable
and fixed expense ratios business profit is not directly proportional to business revenue.
Price analysis provides a quick and easy approach to exploring a range of price and
number of sale relationship to determine the impact of price changes on business profit.
A price plot clearly display the profit/loss relationship for prices from 5% to 10% of the
current price.

6. Marketing Program

Our means of promoting and advertising our product is through signage,

innovation of products, 3% discount for wholesaler, online promotion, sales talk/ word of
mouth and tarpaulins.

11
 Signage is the first way of knowing our business and products through kind of
visual graphics created to display information to a particular audience. This is typically
manifested in the form of way finding information in places such as streets or
inside/outside of building.

As to the product innovation, we create a subsequent introduction of products

that is either new or improve on previous goods of its kind like jam, banana chips,
herbal juice and juices. With this we can make our own trademark that the customers
can recognizes us.

We also offer 3-5% discounts on a wholesales, for those customer who want to
retail it and at the same time gain income for both of us. This is one way to satisfy the
needs and wants of our customers through good service so that they will continue buy
our products.

The online promotions or internet marketing, this ties together the creative and
technical aspect of the internet, including design, development, advertising and sales,
and updating. Online promotions or internet marketing also refers to the placement of
media along many different stages of the customer engagement cycle through search
engine marketing (SEM), search engine optimization (SEO), banner ads on specific
websites, email marketing, content marketing and mobile advertising for them to be
familiar not only to the products we sell but to the company also.

Word of mouth which passing of information from person to another person by

oral communication, which could be as simple as telling someone as promoting our
products. It’s also a one way of being known to the products and the company.

Tarpaulins are also used for advertisement through printing; we can put poster
and steamers printing outside our store, schools, and near our target market so that our
customer can recognizes our products.

12
 Management Aspect
A. Man-power requirement
Personnel Job requirement
Cashier  At least 18-30 years old.
 High school graduate
 College level
 Undergraduate
 With/without experience
(2) Laborer  At least 18-25 years old.
/worker  Elementary/high school
graduate/undergraduate.
 Or College level.
B. Salaries & Wages
Personnel Rate x # of days.
Cashier P 290x30=
Laborer 1 P 290x30=
Laborer 2 P 290x30=
Job descriptions
 Responsible in handling of
cash & recording of sales.
 Ensuring the accuracy of
transaction.
 Maintaining accurate records
& safeguarding the business
cash.
 Responsible to ensure the
drawer contains the correct
amount of cash at the
beginning & end of the shift
after all points of sale are
processed.
 Cash & check collection, credit
cards & other means of
defrayal.
 Responsible for loading &
unloading cargo’s and stocks.
 Stocking shelves/packing.
 Has knowledge of a variety of
hand tools.
 Use of heavy duty equipment.
 Recording units of
goods/products moved or
unpacked.
 Examine products if there are
defects.
 Arrange and display the
products.
Monthly salary Yearly salary
P 8,700 P 104,400
P 8,700 P 104,400
P 8,700 P 104,400
13
 C. Benefits

Personnel SSS SSS (yearly) Philhealth Philheath Total

(quarterly) (quarterly) (yearly)
Cashier P 884x4 P 3,536 P 200x4 P 800 P 108,736
Laborer 1 P 884x4 P 3,536 P 200x4 P 800 P 108,736
Laborer 2 P 884x4 P 3,536 P 200x4 P 800 P 108,736

(Based on the new schedule of SSS and Premium contribution table.)

D. Organizational Chart

Owners

Cashier

Laborers (2)

14
 E. Gantt Chart

Pre-operating activities Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
(year 2014)
 Surveying of the
location
 Funding/pooling of
funds
 Preparation of the
area
 Hiring of workers
 Application of permits
 Construction of
building
 Purchasing of
equipments
 Purchasing of
products
 Hiring of personnel
 Training of personnel
 Final preparation
Operating Activities
(year 2015)
 Opening/blessing
 Inventory counting
 Additional purchasing
of products
 Remittance of taxes
 Remittance of Phil
health
 Remittance of SSS
 Renewal of permits
Post-operating Activities
(year 2016)
 Renewal of permits
 Renovation
o (year 2017)
 Acquisition of
products
 Expansion
 Hiring new
employees

15
 Technical Aspect

A. Product

Products Description
Banana  It flourishes well under tropical moisture-rich, humid low-flying farm lands.
 High calorie tropical fruit.
 Composed of simple sugars like fructose and sucrose.
 Contains good amount of soluble dietary fiber.
 Very good source of vitamin B6
 Moderate source of vitamin C
 Fresh bananas provide adequate levels of minerals like copper,
magnesium & manganese.
 Very rich source o potassium.
Apple  Are obtaining from the medium-sized tree belonging to the rosaceae
family.
 Impressive list of phyto-nutrients and anti-oxidants.
 Low in calories.
 Also good in tartaric acid.
 Contains good quantities of vitamin C & beta-carotene.
 Good source of vitamin B-complex.
 Contains a small amount of minerals like potassium, phosphorus &
calcium.
Mangoes teen  Delectably sweet and juicy fruit that offers numerous health benefits of
both the fruit itself & its skin which are incredibly potent disease fighters.
 Rich in xanthones which may promote healthy physical function.
 Contains up to 5 grams of fiber.
 Its purplish pigment is also used as a dye.
 The rind decoction is taken to relieve diarrhea & cystitis, gonorrhea &
gleets, & applied externally as an astringent lotion.
 A decoction of the leaves & bark as a febrifuge and to treat thrush,
diarrhea, dysentery, & urinary disorders.
Durian  Rich in energy, minerals & vitamins.
 100g fresh fruit provides 147 calories.
 Made of simple sugars like fructose & sucrose.
 Free from saturated fats & cholesterol.
 Rich in dietary fiber, which makes it a good bulk laxative.
 Source of anti-oxidant vitamin C, B complex, B5, B6, B1.
 Contains minerals like manganese, copper, iron & magnesium.
 Rich in potassium, essential amino acid & tryptophan.
Pomelo  Helps in getting rid of diseases like cancer, diabetes, heart diseases and
other small and big infections.
  It also helps in flushing out all the impurities and toxic materials from the
body.
Dried fruit  Are some of the healthiest alternatives to refined sugar, and they are an
candies excellent way to satisfy a sweet craving.

16
B. Production Process

Plant and harvest from farm

Buy from suppliers

Display in the Fruit store

Sell to the Customers

Transaction Process

After inventory, go for waste

disposal.

Waste segregation

Disposal back to the farmland for

fertilization.

17
C. Project Layout

CR

Cashier Table
Cabinet display

Cabinet display
Cabinet Display

Roll-up door

Front view

18
D. Business Location

Diversion rd.
. Catitipan

Business location
Davao int’l Air T
port. o
s
a
s
a

19
E. Materials and Supplies

Office materials

Particulars Quantity Price/Unit Amount

Office Table 1 P 2,870.00 P 2,870.00
Plastic Table 3 P 445.00 P 1335
(32x36)
Plastic 10 P 80.00 P 800.00
chairs
Weighing 1 P 1,250.00 P 1,250.00
Scale
Cash table 1 P 2,500 P 2,500
Basket tray 5 P 78 P 390
Water 1 P 900.00 P 900.00
dispenser
Telephone 1 P 999 P 999
TOTAL P 11,044.00

Office supplies

Particulars Quantity Price/Unit Acquisition value

Stapler (big) 2 P 52.00 P 104.00
Calculator 1 P 350.00 P 350.00
File organizer 1 P 140.00 P 140.00
Scissors (big) 2 P 45.00 P 90.00
Document tray 1 P 295.00 P 295.00
Cutter (big) 2 P 19.00 P 38.00
Trash can 2 P 109.00 P 218.00
Bond papers, long 1 ream P 158.00 P 158.00
Bond papers, short 1 ream P 130.00 P 130.00
Ball pen 2 P 5.00 P 10.00
Pencil 2 P 5.00 P 10.00
Staple wire 1 P 22.00 P 22.00
Log book, 500’s 2 P 46.00 P 92.00
Folder, brown short 5 P 5.00 P 50.00
Folder, brown long 5 P 5.00 P 50.00
Masking tape 2 P 20.00 P 40.00
Binder clip 1 P 30.00 P 30.00
Adhesive tape 1 P 25.00 P 25.00
CFL lamb 6 P 192.00 P 1,152.00
TOTAL: P 2954.00

F. Machineries and Equipments

20
Furniture and Fixture

Particulars Quantity Price/Unit

Display cabinet 4 P 1,500.00
Roll-up door 2 P 12,000.00

Office Equipments

Particulars Quantity Price/Unit

Desktop Computer W/ 1 P 25,000.00
Printer
(Koppel) AirCon 1 P 9,900.00
CCTV Camera 1 set P 13,999.00
Cash register Computer 1 P 10,500.00
Refrigerator 1 P 14,000

21
G. Utilities Consumption

Light

 Business hours (8:00am-8:00pm) = 12 hours.

Refrigerator 75 watts x 24hrs. = 1,800/1000= 1.80kwh

Air Con. 80 watts x 12hrs. = 960/1000 = 0.96kwh
Computer desktop 70 watts x 6hrs. = 420/1000 = .42kwh
Cash register computer 70 watts x 12hrs. = 840/1000 = .84kwh
Water dispenser 15 watts x 12hrs. = 180/1000 = .18kwh
CCTV camera (2) 30 watts x 24hrs. = 720/1000 = .70kwh
CFL lamb (4 inside) 160 watts x 12hrs. = 1920/1000 = 1.92kwh
CFL lamb (2 outside) 80 watts x 15hrs. = 1200/1000 = 1.20kwh
TOTAL: 8.02kwh/day

8.02kwh x 30 = 240.60kwh/month

240.60 x 12 = 2887.2kwh/year x 5.3298698(Davao light bill)

= P 15,388.40 estimated light bill for a year.

Water

400 x 12 month = P 4,800/year.

Telephone

P 499/month x 12month = P 5,988/year

Total Utilities expense= P 26,176.40

22
Financial Aspect

Schedule of Depreciation A: Furniture and Fixtures

Particulars Quantity Price/Unit Est. useful Acquisition Annual

life Value dep’n
Display 4 P 1,500.00 8 years P 6,000.00 P 750
cabinet
Roll-up door 2 P 12,000.00 8 years P 24,000.00 P 3,000
TOTAL: P 30,000.00 P 3,750
Net: P26, 250

Schedule of Depreciation B: Office Equipments

Particulars Quantity Price/Unit Est. useful Acquisition Annual

life Value dep’n
Desktop 1 P 25,000.00 10 years P 25,000.00 P 2,500
Computer W/
Printer
(Koppel) 1 P 9,900.00 10 years P 9,900.00 P 990
AirCon
CCTV 1 set P 13,999.00 8 years P 13,999.00 P 1,750
Camera
Cash 1 P 10,500.00 10 years P 10,500.00 P 1,050
register
Computer
Refrigerator 1 P 14,000 10 years 14,000 P 1400
TOTAL: P 73,399.00 P 7,690
Net: P 65,709.00

Schedule C: office materials

Particulars Quantity Price/Unit Amount

Office Table 1 P 2,870.00 P 2,870.00
Plastic Table 3 P 445.00 P 1335
(32x36)
Plastic 10 P 80.00 P 800.00
chairs
Weighing 1 P 1,250.00 P 1,250.00
Scale
Cash table 1 P 2,500 P 2,500
Basket tray 5 P 78 P 390
Water 1 P 900.00 P 900.00
dispenser
Telephone 1 P 999 P 999
TOTAL P 11,044.00

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Schedule D: Office Supplies

Particulars Quantity Price/Unit Acquisition value

Stapler (big) 2 P 52.00 P 104.00
Calculator 1 P 350.00 P 350.00
File organizer 1 P 140.00 P 140.00
Scissors (big) 2 P 45.00 P 90.00
Document tray 1 P 295.00 P 295.00
Cutter (big) 2 P 19.00 P 38.00
Trash can 2 P 109.00 P 218.00
Bond papers, long 1 ream P 158.00 P 158.00
Bond papers, short 1 ream P 130.00 P 130.00
Ball pen 2 P 5.00 P 10.00
Pencil 2 P 5.00 P 10.00
Staple wire 1 P 22.00 P 22.00
Log book, 500’s 2 P 46.00 P 92.00
Folder, brown short 5 P 5.00 P 50.00
Folder, brown long 5 P 5.00 P 50.00
Masking tape 2 P 20.00 P 40.00
Binder clip 1 P 30.00 P 30.00
Adhesive tape 1 P 25.00 P 25.00
CFL lamb 6 P 192.00 P 1,152.00
TOTAL: P 2954.00

Schedule E: Partnership Expense

Verification for company name w/ the SEC P 400

Community tax certificate P 500
Barangay clearance 500
TOTAL P 1,400

Schedule F: Permit and Licenses

24
Sanitary permit fee P 900.00
Occupational tax P 360.00
Inspection fee P 850.00
Registration fee P 500.00
Certificate fee P 100.00
Documentary stamp P 15.00
TOTAL: P 2,725.00

Schedule G: Advertising Expense

Tarpaulin printing (1) P 350.00

Fliers P 200.00
Posters P 300.00
TOTAL: P 850.00

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 Schedule H: Salaries and Benefits

Employee Rate x no. Monthly Yearly SSS Phil Total Total

of days salary salary health working
capital
Quarterly Yearly Quarterly yearly
Cashier (1) 290 x 30 P 8,700 P 104,400 P 884x4 P 3,536 P 200x4 P 800 P 108,736 P 326,208
days
Laborer/ 290 x 30 P 8,700 P 104,400 P 884x4 P 3,536 P 200x4 P 800 P 108,736
Worker 1 days
Laborer/ 290 x 30 P 8,700 P 104,400 P 884x4 P 3,536 P 200x4 P 800 P 108,736
Worker 2 days
TOTAL: P 313,200 P 10,608 P 2,400 P 326,208

26
Project Cost Summary

A. Capital Expenditure

Furniture & fixtures (refer to sched. A) 30,000.00

Office equipments (refer to sched. B) 73,399.00 P 103,399

B. Direct Expenditure

Feasibility study preparation P 5,000.00

Partnership expense (refer to sched. E) 1,400.00

Permit & licenses (refer to sched. F) 2,725

Legal fees 2,500

Insurance 2,500

Advertising expense (refer to sched. G) 850.00

Office materials (refer to sched. C) 11,044.00 P 26,019

C. Operating Capital

Salaries & benefits (refer to sched. H) P 326,208

Utilities

Water & Electric bill P 20,188.4

Telephone bill P 5,988.00 26,176.4

Lease payments 10,000.00

Repairs & maintenance 2,500.00

Office supplies (sched. D) 2,954.00 P 367,838.40

TOTAL: P 497,256.40

27
Financial Aspect

Operating Expense:

Utilities expense

Water & Electric bill P 20,188.4

Telephone bill P 5,988.00 26,176.4

Lease payments 10,000.00

Repairs & maintenance 2,500.00

Office supplies (sched. D) 2,954.00

TOTAL P 41,630.40

Depreciation Expense:

Schedule A P 3,750

Schedule B P 7,690

TOTAL P 11,440

I. Initial Capitalization

Total project cost P 497,256.40

Add: purchased product cost 986,547.00

TOTAL: P 1,483,803.40

Est. Initial Capital P 1,500,000.00

28
 Financial Assumption on Products

Products Purchase by Selling price Year 2 Year 3 Year 4 Year 5

price (year1)
Apple regular 7,078x8=P56,624 7,200x12=P86,400 7,644x17=P129,948 8,561x25=P214,025 10102x30=P303060 12425x35=P434,875

Special 7,078x13=P92,014 7,200x17=P122,400 7,644x25=P191,100 8,561x30=P256,830 10102x35=P353570 12425x40=P497,000

Banana 2,831x33=P93,423 2,900x38=P110,200 3,057x45=P137,565 3,454X50=P189,970 4076x65=P264940 5013x75=P375,975
regular
Special 2,831x38=P107,578 2,900x42=P121,800 3,057x50=P152,850 3,454X60=P207,240 4076x70=P285320 5013x80=P401,040
Pomelo 4,246x33=P140,118 4,300x38=P163,400 4,585x40=P183,400 5,181x50=P259,050 6114x60=P366840 7520x70=526,400
Mangos teen 1,415x48=P67,920 1,450x52=P75,400 1,528x55=P84,040 1,727x65=P112,255 2038x75=P152850 2507x85=P213,095
Durian regular 4,246x33=P140,118 4,300x38=P163,400 4,585x40=P183,400 5,181x50=P259,050 6114x60=P366840 7520x70=P526,400
Special 4,246x38=P161,348 4,300x42=P180,600 4,585x45=P206,325 5,181x55=P284,955 6114x55=P336270 7520x65=P488,800
Candies/dried 7,078x18=P127,404 7,300x23=P167,900 7,644x30=P229,320 8,561x40=P342,490 10102x40=P404080 12425x50=P621,250
fruits
TOTAL P 986,547.00 P 1,191,500.00 P 1,497,9480 P 2,125,815.00 P2,833,770.00 P 4,084,835.00
Annual
Sales

29
 II. Income Statement

Note: Assumptions at 5% increase in succeeding annual operating expense.

Assumptions at 2% increase in succeeding 3rd, 4th & 5th year of salaries expense.

Assumptions at 2% increase in succeeding 1st & 2nd sales return and allowances;
and 5% increase in succeeding 3rd, 4th & 5th year of sales return and allowances.

Year 1 Year 2 Year 3 Year 4 Year 5

Sales P 1191500 P1497948 P2125815 P 2833770 P 4084835
Less: sales 23830 29958.96 106290.75 141688.50 204241.75
return &
allowances
Net sales P 1167670 P 1467989.04 P 2019524.25 P 2692081.50 P 3880593.25
Less: COGS 584139 976939.47 1077898.07 937422.57 474931.09
Direct 26019 _____ _____ _____ _____
expense
Salaries 326208 326208 332732.16 339386.80 346174.54
expense
Operating 4163.40 4371.57 4590.15 4819.66 5060.64
expense
Depreciation _____ 11440 11440 11440 11440
expense
EBIT P 227140.60 P 149030.00 P 592863.87 P 1399012.47 P 3042986.98
Tax (35%) 79499.21 52160.50 297592.35 489654.36 1065045.34
Net income P 147,641.39 P 96,869.50 P 385,361.52 P 909,358.11 P 1,977,941.54

30
 Pre-operating Year 1 Year 2 Year 3 Year 4 Year 5
Cash receipts
Capital P1,500,000
contribution
Cash/ product _____ P 1,191,500 P 1,497,948 P 2,125,815 P 2,833,770 P 4,084,835
sales
TOTAL: P 1,500,000 P 1,191,500 P 1,497,948 P 2,125,815 P 2,833,770 P 4,084,835
Cash
disbursement:
CAPEX: P 103,399 _____ _____ _____ _____ _____
Sales returns & _____ P 23,830 P 29,958.96 P 106,290.75 P 141,688.50 P 204,241.75
allowances
COGS _____ P 584,139 P 976,939.47 P 1,077,898.07 P 937,422.57 P 474,931.09
Inventory _____ P 402,408 P 201,204 P 301,806 P 271,625.40 P 353,113.12
Direct P 26,019 _____ _____ _____ _____ _____
expenditure
Salaries _____ P 326,208 P 326,208 P 332,732.16 P 339,386.80 P 346,174.54
expense
OPEX _____ P 4163.40 P 4,371.57 P 4,590.15 P 4,819.66 P 5,060.64
Tax payment _____ _____ P 79,499.21 P 52,160.50 P 207,502.35 P 489,654.36
Profit sharing _____ P 147,641.39 P 96,869.50 P 385,361.52 P 909,358.11 P 1,977,941.54
TOTAL: P 129,418 P 1,488,389.79 P 1,715,050.71 P 2,260,839.15 P 2,811,803.39 P 3,851,117.04
Net cash flow P 1,370,582 (P 296,889.79) (P 217,102.71) (P 135,024.15) P 21,966.61 P 233,717.96
Add: cash bal. _____ P 1,370,582 P 1,073,692.21 P 856,589.50 P 721,565.35 P 743,531.96
beginning
Net cash bal. P 1,370,582 P 1,073,692.21 P 856,589.50 P 721,565.35 P 743,531.96 P 977,249.92
beginning
III. Cash Flow

Note: The business is consisting of 5 partners and the capital of each partner is P 300,000.00 equally with the total
contribution of P 1,500,000.00.

31
 Inventory Computation

Products Selling-purchase demand

Apple (reg.) 7,200 - 7,080=122x12= 1,464
Apple (special)l 7,200 - 7,080=122x17= 2,074
Banana (reg.) 2,900 – 2,831=69x38= 2,622
Banana (special) 2,900 – 2,831=69x42= 2,898
Pomelo 4,300 – 4,246=54x38= 2,052
Mangoesteen 1,450 – 1,415=35x52= 1,820
Durian (reg.) 4,300 – 4,246=54x38= 2,052
Durian (special) 4,300 – 4,246=54x42= 2,268
Candies/dried fruits 7,300 – 7,078=222x23= 5,106
TOTAL: 22,356

22,356x12= P 268,272

= 268,272x50%

= 134,136 + 268,272

= P 402,408

Year 1 Year 2 Year 3 Year 4 Year 5

Beg. ____ P 584,139 P 976,939.47 P 1,077,898.07 P 937,422.57
Inventory
Purchases P 986,547 P 996,412.47 P 1,006,376.60 P 1,036,567.90 P 1,067,664.94
CGAS P 986,547 P 1,580,551.47 P 1,983,316.07 P 2,114,465.97 P 2,005,087.51
End. 402,408 603,612 905,418 1,177,043.40 1,530,156.42
Inventory
COGS P 584,139 P 976,939.47 P 1,077,989.07 P 937,422.57 P 474,931.09

Note: Assumptions at 1% increase in succeeding 2nd & 3rd year of purchases; and 3%
increase in succeeding 4th & 5th year of purchases.

Assumptions at 50% increase in succeeding 2 nd & 3rd year of ending inventory;

and 30% increase in succeeding 4th & 5th year of ending inventory.

32
 IV. Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current asset:
cash (balance 1,073,692.21 856,589.50 721,565.35 743,531.96 977,249.92
end)
402,408 603,612 905,418 1,177,043.40 1,530,156.42
Inventory
Total current 1,476,100.21 1,460,201.50 1,626,983.35 1,920,575.36 2,507,406.34
asset
Non-current:
furniture &
30,000 26,250 22,500 18,750 15,000
Fixture (net)
office equipment
73,399 65,709 58,019 50,329 42,639
(net)
Total non-
103,399 91,959 80,519 69,079 57,639
current asset
TOTAL
P 1,579,499.21 P 1,552,160.50 P 1,707,502.35 P 1,989,654.36 P 2,565,045.34
ASSETS:
Liabilities &
Capital
Initial Capital P 1,500,000 P 1,500,000 P 1,500,000 P 1,500,000 P 1,500,000

tax payment 74,499.21 52,160.50 207,502.35 489,654.36 1,065,045.34

TOTAL
Liabilities & P 1,579,499.21 P 1,552,160.50 P 1,707,502.35 P 1,989,654.36 P 2,565,045.34
Capital

Partner 1 – P 300,000 (money coming from the owner savings)

Partner 2 – P 300,000 (money coming from the selling of land)

Partner 3 – P 300,000 (money coming from the selling of car)

Partner 4 – P 300,000 (money coming from the own savings)

Partner 5 – P 300,000 (money coming from the selling of property

33
 V. Financial ratio

RATIO FORMULA REMARKS

The profit ratio is 29.97%%, means that for every

A. Net Profit Margin Average Net Income 703434.413 29.97% peso of sales there is a net profit of P.2997. It shows
Profitability Average net Sales 2346773.60 that the earnings of the business is good because of
the higher profit margin indicates a more profitable in
the business that has been better control over its
costs.
Return on equity Average net sales 2346773.60 156.45% The ratio is 156.45%% in every peso sales there
Owners equity 1500000 is a return of P1.5645.

The business shows how efficient management

Return on Assets Average Net Income_ 703434.413 33.44% is at using assets to generate earnings and also
Average Total Asset 1878772.352 they have enough to sustain any return on
assets.
It simply means that the business would be in
B. Liquidity Current Ratio Average Current Assets 1798253.352 476.02% relatively good short-term financial standing
Average Current 377772.352 because they have an ability to pay the current
Liabilities
liabilities or they have a sufficient level of
liquidity to pay the liabilities using the current
asset.
The capital of the business is recoverable with
D. Payback Capital 1500000 2 years two years of operations which is favorable to us.
Period Average Net Income 703434.413

34