STI COLLEGE BACOOR

STI Building, Tirona Highway, Bacoor City, Cavite

(046) 970-1544/ 417-7411

“FORBIDDEN ICE CREAM”

Veggieam group of company

Junio, Ericka
Lazaro, Aleckxa
Ligon, Kyla Marie
Magtubo, Lawrence
Sarabia, Alliah Jonica

Accountancy Business and Management

March 2023-June 2023

 I.
EXECUTIVE
SUMMARY
Introduction
Vegetables are an important part of a healthy eating pattern and are excellent sources of
many nutrients. Eating vegetables provides health benefits, as part of an overall healthy diet, but
people are more concerned about whether adopting a healthy eating pattern or not because it might
prevent them from enjoying their favorite ice cream dessert. A small dessert consumed daily can
be part of a healthy diet but most importantly a balanced diet which includes the nutritious flavor
can make a change to a wonderful start for a healthy habit.
Vegetable ice cream is a relatively new product in the frozen dessert industry, it offers a
unique and healthy alternative to traditional ice cream flavors and appeals to consumers who are
looking for healthier options without sacrificing taste. The concept of vegetable ice cream is simple
– it is a frozen dessert that incorporates vegetables as one of the main ingredients, along with other
traditional ice cream ingredients such as milk, cream, sugar, and flavorings. This allows for a
variety of flavors and textures that are both delicious and nutritious. Some examples of vegetable
ice cream flavors include squash and carrot.
Carrot and Squash are source of nutritious yet sweet vegetable that can be add in a healthy
diet. Carrots are full of benefits—they may promote healthy vision, balance blood sugar, and help
with weight management. Carrots can even be incorporated into desserts, including carrot cake, of
course, as well as carrot pie carrot cookies, and even carrot ice cream. Squash has also a lot greater
advantage. Squash are good sources of vitamin A, C, and B vitamins; they're high in antioxidants;
and they're rich in minerals such as potassium, and magnesium. Squash increase strength and
fitness, maintain a healthy weight, increase flexibility and strength in the back. It is also good for
the health of children because it promotes good coordination, agility, and flexibility, and build
hand–eye coordination.
The business aims to assess the potential of introducing vegetable ice cream into the
market, exploring the viability of the product, market demand, and potential profitability. It will
evaluate factors such as market demand, production costs, distribution channels, and consumer
preferences. Ultimately, this study will provide valuable insights into the feasibility of producing
and selling vegetable ice cream and will inform the decision-making process for potential investors
and entrepreneurs looking to enter the market.
I. Type of Business
A. Nature

Mission
To serve healthy ice cream with the best vegetable flavored available selection that
embrace a new understanding of health and happiness as low as possible price. `

Vision
To be recognized on an international market as the company that offers its consumers the
healthiest ice cream in the Philippines.

Food Industry
Forbidden Ice cream will operate in food industry with different flavored vegetable
selection available and supply healthiest ice cream for its consumer. Which evaluate factors such
as market demand, production costs, distribution channels, and consumer preferences.

B. Name
The Business name will be Veggieam group of companies, a combination between
vegetable and ice cream which an overall idea of a business, which provide a healthy eating pattern
in one product. A simple dessert of ice cream had twisted because of vegetable flavor selection
consumer can taste now. However, our brand name will be “Forbidden Ice cream”, we chose this
name because parents occasionally forbade their kids from eating ice cream due to its sweetness
and excessive amounts of sugar and flavoring. We come up to the idea where children can disobey,
or parents can allow children by eating ice cream because of its nutritious flavoring. The company
believed that this name would fit the product because most individuals prefer to take a chance
when they're puzzled, the business thought that this name would capture the attention of its
consumers. Veggieam company taken care of its consumer, especially those consumers who is
health-conscious, company can give them comfort without concerning about their health when
eating their favorite ice cream.
“Health and Happiness in one scoop” will be the tagline of the brand, because every scoop
of ice cream contains a pure nutritious health benefits and happiness to the consumers.
C. Product
The product of the business will be the “Forbidden Ice cream” It is a vegetable ice cream
contains two nutritious and sweet vegetable such as carrot and squash. Ice cream is one of the
favorite dessert of children’s which may help the parents to make their children healthy. The
product contains milk, cheese, and vegetable flavor. It tastes creamy, sweet, and flavorful. Not
only does vegetable ice cream have nutritional value, but it also is an incredible source of energy.
The product will also last long for almost 3 weeks. The product will be sold per cone and cup with
3-2 scoops. The more consumer buys, the more the scoop ice cream is going to be.

Logo

Logo Description
The business chose a simple logo yet creamy and appealing for all consumers at all ages.
The product of the logo used cone in order to represent the main concept of the product and the 2
scoops provided in the cone represents the 2 nutritious flavors that the company offer to its
consumers. In addition, colors of the ice cream are typically the same to actual color of the use
ingredients and packaging. Overall, the brand logo together with the brand name contributes a
healthy marketing strategy as it assures the buyer of the product has a lot greater benefits in just
one look.
Product Description
The product is a rich, sweet, creamy frozen food made from variously flavored vegetable
and milk products churned or stirred to a smooth consistency during the freezing process. The
product ice cream molded in a scoop with a shape of circle and served in a sugar cone or cup. The
price of the product will be Php 20.00 per cone or cup.

Supply and Shortage

Raw carrots, when properly stored will usually stay fresh for around 3 to 4 weeks in the
fridge. However, carrots used are already chopped, so it can be store in the fridge and they'll last
for about 2 to 3 weeks.
Raw squash can last up to 2 days even though it sliced, however the process should be
boiled. It is best bought it on the exact day of production boil it and it will last 3 weeks when mixed
in the ice cream.
II. Marketing, Management and Financial Highlights

Marketing Aspect

Marketing description
To promote our unique product, we'll be implementing the following marketing strategy.
Through the help of targeted social media ads on platforms such as Instagram and Facebook, we'll
showcase the unique features and benefits of our Vegetable Ice Cream to our target audience. The
business will also offer free samples of the vegetable ice cream to potential customers in locations
where the target audience is likely to be found. We'll create blog posts, infographics, and other
informative content that educates customers about the benefits of incorporating vegetables into
their diet in a fun and engaging way. This will help establish our brand as a trusted authority on
healthy living. These strategies in place, we're confident that we'll be able to successfully introduce
our Vegetable Ice Cream to the market and become a go-to frozen dessert option for health-
conscious consumers everywhere.

Target Market
The Veggieam group of company focuses on all ages, especially parents who have picky
eating children. Veggieam group of company also wants to target those people who don’t eat
vegetable and give them nutritious line of habit.

Packaging
The business will be giving customers a choice between a cup or a cone and is a simple yet
effective way to elevate our customer service and increase customer satisfaction.

Management Aspect
The Veggieam company will register with the SEC, Mayor's Permit, DTI, and business
permit of the store, we are establishing our business as a legitimate and legal entity. This will help
build trust with consumers, as well as protect our business from any legal issues that may arise.
Getting a Sanitary Permit and FDA approved permit is also crucial for the business, as it
ensures that our products are produced and handled in a safe and hygienic manner. This will give
our consumer peace of mind that they are consuming a high-quality product that is safe for them
to eat.
 By taking these steps, we are not only complying with legal requirements but also
establishing a strong foundation for our business. Consumers are more likely to trust and choose a
business that takes their safety and health seriously.
The Business will have five (5) employees, three (3) persons are assigned to make the ice
cream, one (1) server and one (1) cashier.

Financial aspect
“Veggieam” Group of company has a total capital of 8,000 pesos. The percentage
ownership of each investor, you would divide their individual investment by the total capital of
the corporation and multiply by 100:

Investor 1: (3,000 / 8,000) x 100 = 37.5%

Investor 2: (2,000 / 8,000) x 100 = 25%
Investor 3: (1,000 / 8,000) x 100 = 12.5%
Investor 4: (1,000 / 8,000) x 100 = 12.5%
Investor 5: (1,000 / 8,000) x 100 = 12.5%

There would be a contract between all the investors that no one will withdraw his/her
investment in the span of five (5) years from the time business starts its operation and this will
ensure that all investors are committed to the long-term success of the business and willing to wait
for a return of their investment.

III. Socio-Economic Benefits

When the company starts to enter this business, it makes sure that their future consumers
will have a benefit from it. The business would be able to pay right taxes from the government and
contribute to a safety operation for their employees specially the consumers. The consumers would
benefit from nutritious flavor selection of ice cream that company offered. The company aims to
promote the product in small areas where children could be malnourished. As well as the company
would be able to create or find some charity to help derived from over all sales, hire new employees
which has minimal requirements that can meet by anyone who’s willing to work especially
students and unemployed individuals. When business grew in a short period of time, we will
franchise on different part of the Philippines and offer individuals a franchise training for this line
of business industry.
 II.
MARKETING
ASPECTS
II. Marketing Aspect

The success of a business is greatly influenced by the marketing component. It is regarded as one
of the feasibility study most important components. It involves a demand and supply analysis that
takes into account all potential consumer’s unchanging needs and wants as well as their willingness
and desire to purchase the product. It will also address important concerns required for long-term
profit minimization.

A. PRODUCT TO SELL
The product will be served in either a cone or a cup where the customer wanted it to be
served. Consumers can also choose if they want the flavors to be mixed. The price of the product
will be ₱ 15.00 for the cone and ₱ 20.00 if the ice cream is in a cup.

B. Target Market

The matching data from the survey and the target market serves as the foundation for the
demand analysis. This procedure helped in the collection of information and data required to
identify consumer demands and preferences. To acquire information for the development of this
study, a total of (143) respondents from all throughout the school have been surveyed.

B.1. Area Coverage

The place where the business will be located is at Aniban Central School at Aniban 2, Bacoor,
Philippines

B.2. Consumers/ Customer

The possible customers/consumers will be students, parents, people living in the area and possible
passerby nearby the school. Customers will be coming from different age groups, male or female.

C. Demand and Supply

C.1 TOTAL POTENTIAL DEMAND

In order to acquire the information and data required for this study, 143 individuals were surveyed
and interviewed to learn more about the product's local demand. The (143) sample size came from
using raosoft calculator using the population of 2,750 located in the area with a confidence level
of 95% and a margin error of 8%.

C.1.1 Survey Results

The Corresponding tables were based on the survey conducted on the respondents in the
area with the use of survey questionnaires.
 Table 1
Distribution of Data According to Respondents Gender
Gender Frequency Percentage
Male 81 57%
Female 62 43%
Total 143 100%

Table 1 shows the distribution of data according to the respondent’s gender. The table
shows that the frequency of 81 or 57% of the respondents are male and the frequency of 62 or 43%
of the respondents are female. This indicates that the potential consumers are more likely male.
Table 2
Distribution of Data According to Respondents Age
Age Frequency Percentage
5-20 75 52%
21-30 45 32%
31+ 23 16%
Total 143 100%

Table 2 shows the distributions of data according to the age of the respondents. The survey
shows that most of the respondents are at age of 5-20 years old with the frequency of 75 and 52%
percent followed by respondents who are 21-30 years old with the frequency of 45 and 32% percent
and lastly, the respondents who are 31 years old and above with the frequency of 23 and 16%
percentage. This indicates that the majority of potential consumers are probably between the ages
of 5-20 years old.
Table 3
Distribution of Respondents Who likes Eating Carrots
Do you like Carrot? Frequency Percentage
Yes 123 86%
No 20 14%
Total 143 100%

Table 3 shows that the number of respondents who likes eating carrots are 123 or 86%
percent. The number of respondents who doesn’t like eating carrots are 20 or 14% percent.
 Table 4
Distribution of Respondents Who likes Eating Squash
Do you like Squash? Frequency Percentage
Yes 102 71%
No 41 29%
Total 143 100%

Table 4 shows that the number of respondents who likes eating squash are 102 or 71%
percent. While 41 individuals or 29% percent of the respondents doesn’t like eating squash.
Table 5
Distributions of Respondents on How innovative the product?
How innovative the Frequency Percentage
product?
Very innovative 130 90%
Somewhat innovative 13 10%
Not innovative 0 0%
total 143 100%

Table 5 shows how innovative the product of vegetable ice cream. Based on the data above
130 respondents or 90% of the sample says that the product is very innovative, and 13 respondents
says that the product is somewhat innovative. While none of the respondents says that the product
is not innovative. Some parents claim that because they have not yet heard of ice cream with a
vegetable flavor, they think it is quite unique.
Table 6
Distribution of Respondent on How would they rate the value of the product?
Price rate Frequency Percentage
Excellent 113 79%
Above average 30 21%
Average 0 0%
total 143 100%

Table 6 shows the distribution of respondents of how they would rate the value of the
product. A total of 143 respondents are surveyed if the 20 pesos will be worth it for the product
and rate it. The 113 or 79% of the respondents rate the price of the product were excellent and 30
or 21% of them rate the price of the product above average. In addition, none of them rate the price
an average. This indicates that majority of the respondents would pay 20 pesos for the vegetable
ice cream.
 Table 7
Distribution of Respondent Who are still willing to buy the Ice Cream even if it’s Vegetable
Willing to buy Frequency Percentage
Yes 128 90%
No 15 10%
Total 143 100%

Table 7 shows the distribution of data according to their decision if the respondents are
willing to buy the ice cream even if it’s vegetable. Based on the survey result, the 28 or 90%
respondents are willing to buy vegetable ice cream and 15 or 10% of the respondents said they are
not willing to buy vegetable ice cream. This indicates that the potential consumers specially
children are still willing to try ice cream vegetable because they said that it tastes like salad and
cheese.
Table 8
Distribution of Respondents on What flavor of Vegetable Ice Cream they would like to try
Flavors Choice Frequency Percentage
Carrots 59 41%
Squash 84 59%
Total 143 100%

Table 8 shows the distribution of data of the respondents on what flavor of vegetable ice
cream would they like to try. Based on the survey, Squash has the highest frequency responds with
84 and 59% and carrots has the frequency of 59 responds or 41%.
Table 9
Number of Population
Number of Population (2.5% growth rate) from PSA
Year Number of Population
0 2,750
1 2,819
2 2,889
3 2,959
4 3,029
5 3,099

Table 9 shows the population inside the Aniban Central School's boundaries together with
Bacoor Cavite City's 2.5% growth rate. The table's observation indicates that due to a population
growth rate of 2.5%, there is an annual population rise. From Year 0's population of 2,750 to Year
5's population of 3,099.
 Table 10
Demand Analysis
Demand Analysis
Year Projected Population Annual Demand (90%)
1 2,819 2,537
2 2,889 2,600
3 2,959 2,663
4 3,029 2,726
5 3,099 2,789

Table 10 shows the researchers' 5-year projection of the population and annual demand. To
get the annual demand the Veggieam corporation considered the people who are willing to
purchase the product even if the ice cream flavor is vegetable and 90% of the respondents answered
yes thus the percentage indicated is the annual demand for the product.

C.2 Present Supplier/Competition

In the area chosen by the corporation Aniban Central School, there is no existing direct
competitors who sell ice cream with vegetable flavor. However, in searching along the area of the
school the corporation noticed that there are indirect competitors with the same target market and
concept of the product which is the ice cream. In the same location, in the Aniban Central School
waiting shed, Sorbetes Traditional Ice Cream is one of the existing competitors of the Forbidden
Ice Cream. The existing indirect competitor sells dirty ice cream which also the same texture of
the Forbidden Ice cream.
Table 11
Capacity of Competitors
Competitors
Kabayan Sorbetes Average Capacity of No of Days Annual in Annual in
Flavors Competitors in a Year scoops gallons
Cheese 4 Gallons/128 Scoops 360 46,080 1,440
Chocolate 4 Gallons/128 Scoops 360 46,080 1,440
Total 8 Gallons/256 Scoops 92,160 2,880

Table 11 shows the capacity of the competitors. Forbidden Ice Cream Competitor in the
area is Kabayan Sorbetes, the corporation interviewed the ice cream vendor or called as
“sorbeteros”. He claimed that he could consume 8 gallons of ice cream in a day in 3 hours, 1 hour
in the afternoon because students typically eat lunch outside, and 2 hours after the dismissal of the
students. He claimed that he wasn't able to count the number of ice cream scoops he put in each
cup. According to Amazon (2021) that 1 gallon is considered as 32 scoops.
 Therefore, Manong Sorbeteros had 8 gallons in a day which has 256 scoops. In 8 gallons,
corporation also asked him what flavors of ice cream he can served in a day. Normally, he only
served 2 ice cream flavors which is cheese and chocolate and each of them has 4 gallons. This
indicates that the competitor had a capacity of 46,080 scoops in each flavor with the total of 92,160
scoops or 2,880 gallons annually.

Table 12
Demand and Supply Gap
Demand and Supply Gap
Year Demand Supply Gap
1 2,537 2,880 -343
2 2,600 2,952 -352
3 2,663 3,026 -363
4 2,726 3,102 -376
5 2,789 3,180 -391

Table 12 shows the demand and supply gap. As it observes in the table, there is negative
gap between the demand and supply this means that the competitors in the market along the area
of Aniban Central School will be able to accommodate the given population demand. However,
this projected gap will not define the actual demand because not all of the consumers are really
buying the product, some of these consumers are repeating their purchase that’s why the supply is
well-consumed. This indicates that the corporation must upgrade or exert some effort not to have
a surplus or oversupply but on how to market the product of vegetable ice cream.

Table 13
Target Production
Target Production
Products Offered Product Allocation Daily Capacity Annual Capacity
for Target Market
(Ice Cream) 41% 61 22,265
Carrots
(Ice Cream) 59% 89 32,485
Squash
Total 100% 150 54,750
D. Projected Sales
The corporation will evaluate projected sales to identify which products and services
should be emphasized in advertising or promotions. It is important to the corporation’s supply,
which can use to predict the needs of the business. In these projected sales, the corporation will
adapt the pricing scheme which give the consumers a justifiable and affordable price for the
product that the corporation offered.

Table 14
Projected Daily Sales- In Volume and in Pesos Per Year 1
Products Price Percentage Allocation of Daily Sales
Offered (Php) Allocation for Target Market (Php)
Target Market
(Ice Cream) 20 41% 49 980
Carrots
(Ice Cream) 20 59% 71 1,420
Squash
Total 40 100% 120 2,400
Total Daily Sales 2,400

Table 15
Projected Daily Sales- In Volume and in Pesos Per Year 2
Products Price Percentage Allocation of Daily Sales
Offered Allocation for Target Market (Php)
Target Market
(Ice Cream) 20 41% 52 1,040
Carrots
(Ice Cream) 20 59% 76 1,520
Squash
Total 40 100% 128 2,560
Total Daily Sales 2,560
 Table 16
Projected Daily Sales- In Volume and in Pesos Per Year 3
Products Price Percentage Allocation of Daily Sales
Offered Allocation for Target Market (Php)
Target Market
(Ice Cream) 20 41% 55 1,100
Carrots
(Ice Cream) 20 59% 80 1,600
Squash
Total 40 100% 135 2,700
Total Daily Sales 2,700

Table 17
Projected Daily Sales- In Volume and in Pesos Per Year 4
Products Price Percentage Allocation of Daily Sales
Offered Allocation for Target Market (Php)
Target Market
(Ice Cream) 20 41% 59 1,180
Carrots
(Ice Cream) 20 59% 84 1,680
Squash
Total 40 100% 143 2,860
Total Daily Sales 2,860

Table 18
Projected Daily Sales- In Volume and in Pesos Per Year 5
Products Price Percentage Allocation of Daily Sales
Offered Allocation for Target Market (Php)
Target Market
(Ice Cream) 20 41% 62 1,240
Carrots
(Ice Cream) 20 59% 88 1,760
Squash
Total 40 100% 150 3,000
Total Daily Sales 3,000

Note: The percentage allocation of the target market is based on the response of people on the
conducted survey. The increase allocation of the target market is based the maximum daily capacity
of 150. 80% on year 1, 85% on year 2, 90% on year 3, 95% on year 4, and 100% on year 5.
 Table 19
Projected Monthly Sales- Ice Cream
Months Year 1 Year 2 Year 3 Year 4 Year 5
(Php) (Php) (Php) (Php) (Php)
January 72,000 76,800 81,000 85,800 90,000
February 72,000 76,800 81,000 85,800 90,000
March 72,000 76,800 81,000 85,800 90,000
April 72,000 76,800 81,000 85,800 90,000
May 72,000 76,800 81,000 85,800 90,000
June 72,000 76,800 81,000 85,800 90,000
July 72,000 76,800 81,000 85,800 90,000
August 72,000 76,800 81,000 85,800 90,000
September 72,000 76,800 81,000 85,800 90,000
October 72,000 76,800 81,000 85,800 90,000
November 72,000 76,800 81,000 85,800 90,000
December 72,000 76,800 81,000 85,800 90,000
Annual Sales 864,000 921,600 972,000 1,029,600 1,080,000

The monthly sale of Php 72,000 projected on year 1, Php 76,800 on year 2, Php 81,000 on
year 3, Php 85,800 on year 4, and Php 90,000 on year 5.

Table 20
Total Projected Sales Per Year- Ice Cream
Year Projected Sales- Ice Cream Production Sales Per Year
1 864,000 864,000
2 921,600 921,600
3 972,000 972,000
4 1,029,600 1,029,600
5 1,080,000 1,080,000

The annual sale of Php 864,000 is projected on year 1, Php 921,600 on year 2, Php 972,000,
Php 1,029,000 on year 4, and Php 1,080,000 on year 5.
E. Marketing Programs/Strategies
E.1 Practice of Competitors
Forbidden Ice Cream does not have existing direct competitors because of its unique
variant flavors of ice cream such as carrot and squash. However, there is existing indirect
competitors in the chosen area along the school’s waiting shed. Sorbetes Traditional Ice Cream is
one of the existing competitors of the Forbidden Ice Cream. The existing indirect competitor sells
dirty ice cream which also the same texture of the Forbidden Ice cream. Forbidden Ice Cream
competitor in the area is Kabayan Sorbetes the difference between the product it offers is it has
two variant flavor such as cheese and chocolate. They also use bell which is somehow different to
the corporation jingle strategies in promoting the vegetable ice cream.

E.2 Own marketing strategy

For gaining additional customers/consumers, it is essential for every organization to use
one of the most fundamental ideas in product marketing and it is the use of the four (4) P’s (Product,
Price, Place, Promotion).

4 P’s of MARKETING

PRODUCT
FORBIDDEN ICE CREAM will offer two flavors of ice cream which is carrot and squash.
The product will be in a cone or cup with the preference of the customer.

PRICE
The price of the Forbidden Ice Cream is offered at a very affordable prices since it is a
vegetable ice cream. Prices is subjected to change if there will be an increase in the raw materials,
labor cost and other factors. Product prices will be kept reasonable.

PLACE
The business will take place at an easily found, convenient and crowded with potential
customers. The Forbidden Ice Cream will be located at Aniban Central School at Aniban 2, Bacoor,
Philippines.
PROMOTION
The Forbidden Ice Cream team will be using Tarpaulin and social media applications to
promote products and attract customers. The tarpaulin will be placed in a crowded place where
people will easily notice our tarpaulin. As for the social media promotion, Forbidden Ice Cream
will be having its own page on Facebook, Instagram and on (Tiktok) where it will be shared to
spread on the internet to give information to potential customers about the product and its location.
In addition, the Forbidden Ice Cream corporation come up with the jingle as promotional
strategies, because the team believe that through jingle it will attract or engage students to buy in
the stall. In addition, the Forbidden Ice Cream corporation come up with the jingle as promotional
strategies, because the team believe that through jingle it will attract or engage students to buy in
the stall. Jingle will play in speakers; it won't cost much because it will only take a time and effort
from the team to implement this strategy. As the Veggieam company grows, the staffs will be
looking for new and more effective promotion ideas.

F. MARKETING EXPENSES
Table 21
Marketing/Selling Expense
Advertising Quantity Price Per Unit Total
Materials (Php) (Php)
Tarpaulin 1 200 200
Ice Cream Bell 1 130 130
Social Media 6 500 3,000
Boosting
Total 8 830 3,330

Table 21 show the marketing or selling expense of Forbidden Ice cream company. This
advertising materials will help the company to promote and offer the product with the engaging
sounds and an environmental-friendly materials. It will not only help the company to promote but
also gives comfort and enjoying sounds for all the consumers. It is not sadness nor stress but a full
scoop of happiness from the product that it sells.
 III.
Production/
Operational
Plan
III. Production/Operational Plan

Technical aspect is one of the most crucial aspects of a company that manufactures goods

in large quantities. This part of the paper is where we need to maintain the consistency of a product

not only the size but the consistency of its quality. This includes the production process, production

schedule, labor requirement, machinery and raw material requirements.

A. Technical Production Description

The company will adhere to such processes and procedures in order to guarantee the

product's high quality when served to the consumer.

B. Production/ Operation Process

Detailed procedures of the product are listed below and will be followed throughout the

operation of the business to create a consistent production of the product in terms of its quality.
B.1 Ste p by Step Procedure

Figure 1. Step by Step Procedure of Carrots and Squash

 Figure 1: Step by Step Procedure
Figure 1 shows the process of the production from preparation of ingredients down to the
serving of the product to the customer. The process involved are preparation of the raw ingredients.
Peeling, chopping, blending the carrot, and boiling squash until softened in a separated time,
putting the all-purpose cream in the fridge, grating 3-4 pieces of raw carrot, and set aside for
toppings, mixing of all the ingredients for the carrot and squash flavor, making sure that the cup
containers are clean and not broken before putting ice cream on it to prevent leakage and food
contamination.
The company operational procedures ensure cleanliness and safety for all the staff, product,
and consumers. During the process the staff wear basic PPE’s such as hair nets, gloves, face mask
and aprons. The team make sure that the materials/equipment’s used are completely sanitized
before it used. Forbidden Ice Cream not only give’s happiness and healthiness but also hygiene
and cleanliness with safety precautions for all staffs.

B.2 Duration per Step per batch

Figure 2. Duration per Step per batch

Figure 2. shows the duration per step and per batch. It shows the time that consumed from
preparing the ingredients until the packaging process. The company considered time management
enable to make production fast and efficient.
 Table 22

Labor and Machinery Requirement Per Step

Activity (Carrot Flavor) Labor Machinery

Requirement Requirement

Chop the Carrot and blend until it looks like a puree.

Chop 3-4 pieces of carrot then set aside for toppings

later.

After blending the vegetable, put the carrot in a bowl.

Activity (Squash Flavor)

Get ¼ kilograms of squash put it in a pan and let it boil

until it softens

Remove the pan from fire.

Put the squash in a bowl and blend it.

In a separate bowl, beat the all-purpose cream with an

electric mixer until it doubles its size.

Add condensed milk and beaten all-purpose cream

portion by portion into the bowl where the carrot is. Mix
well by using a spatula. (Do not overmix)

Slice cheese in cubes and blend with a little bit of water

then put it in each flavor.

Put the ice cream mixture into separated ice cream cups
and tubs for those who will choose the cone
C. Store Location
The proposed business is located at Aniban Central School waiting shed, Aniban II Bacoor
City, Cavite. The place is surrounded by daily consumers, students, and parents/guardians where
the business can afford to reach more customer in wide market coverage. This location is chosen
by the company because of the target market it aimed to reach more specific students and parents
in all ages.

Figure 3. Vicinity Map

D. Workplace Layout
The area will be spacious for the employees to be comfortable to move. The area would be
in the stall and operational area which means that the workplace is separated from the area of
selling and production. There are available compartments needed that would keep the workplace
neat, organized and properly sanitized.
Figure 4. Area of selling/stall

Figure 5. Production Area

E. Productional Schedule
Table 23
Production Schedule per Variety- Year 1
Variety Production Percentage of Production Per
Capacity Per Year Production Per Variety Per Year
Variety
(Ice Cream) 41% 17,712
Carrots 43,200
(Ice Cream) 59% 25,488
Squash
Total 43,200

Table 24
Production Schedule per Variety- Year 2
Variety Production Percentage of Production Per
Capacity Per Year Production Per Variety Per Year
Variety
(Ice Cream) 41% 18,893
Carrots 46,080
(Ice Cream) 59% 27,187
Squash
Total 46,080

Table 25
Production Schedule per Variety- Year 3
Variety Production Percentage of Production Per
Capacity Per Year Production Per Variety Per Year
Variety
(Ice Cream) 41% 19,926
Carrots 48,600
(Ice Cream) 59% 28,674
Squash
Total 48,600
 Table 26
Production Schedule per Variety- Year 4
Variety Production Percentage of Production Per
Capacity Per Year Production Per Variety Per Year
Variety
(Ice Cream) 41% 21,107
Carrots 51,480
(Ice Cream) 59% 30,373
Squash
Total 51,480

Table 27
Production Schedule per Variety- Year 5
Variety Production Percentage of Production Per
Capacity Per Year Production Per Variety Per Year
Variety
(Ice Cream) 41% 22,140
Carrots 54,000
(Ice Cream) 59% 31,860
Squash
Total 54,000

F. Labor Requirement
The proposed business will require a one (1) manager who is going to track sales, (3) cooks
for its daily production, and (1) cashier who is also be a sorbetero in ice cream pushcart. They will
be responsible for the orderliness of production, cleanliness of the stall and in making vegetable
ice cream.

G. Machinery/Equipment Requirement
Listed below are the equipment requirements for the business. The list includes the
quantity needed, corresponding unit cost and their total estimated cost.
 Table 28
Machinery /Equipment
Name & Photo Description Unit Quantity Unit Total Cost
Cost

Mixer
It used to mix
the Piece 1 200.00 200.00
ingredients

Blender

Used to blend,
mix, and Piece 1 600.00 600.00
smash other
food

Stove

This used to
cook the Piece 1 700.00 700.00
squash
 Gas tank

I used for Per 3 904 2,712

cooking and tank
heating pans

Grater

It used to cut
the carrot into Piece 1 70.00 70.00
small pieces

Refrigerator

It is used to
preserve the Piece 1 5,225.00 5,225.00
food and to be
cooled

TOTAL : Php 9,507

 Table 29
Furniture and Fixtures

Name & Photo Description Unit Quantity Unit Total Cost

Cost

Folding Table

It can move
around Piece 1 500.00 500.00
easily and
make more
storage

Trash Bin

It is used to
store to Piece 1 250.00 250.00
remove
trash
 Fluorescent Light

It provides Piece 1 250.00 250.00

light in the
store

Cooler
It was used Piece 1 500.00 500.00
to keep ice
cream cold

TOTAL: Php 1,500.00

 Table 30
Kitchen Utensils

Name & Photo Description Unit Quantity Unit Total Cost

Cost

Dishwashing Liquid

used to Bottle1 1 150.00 150.00

wash the gallon
dishes

Sponge and scrub

It is used to Piece 6 25.00 150.00

assist to
wash the
dishes

Plastic Bowl

The Piece 3 70.00 210.00

container
used for
mixing

Knife

a tool used piece 1 110.00 110.00

to cut

TOTAL : Php 620.00

 Table 31
Office Supplies

Name & Photo Description Unit Quantity Unit Total Cost

Cost

Ballpen
Used to write
important details Bundle 1 100.00 100.00

Cattleya Notebook It used to Piece 2 12.00 48.00

document
important detail

Record book
Used to record Piece 2 100.00 200.00
details like sales

Stapler
Used to stapling Piece 2 100.00 200.00
papers

TOTAL: Php 548

 Table 32
Packaging Supplies

Name & Photo Description Unit Quantity Unit Total Cost

Cost

Salad Cup
Ice cream
can be
carried Bundle 1 53.00 53.00
without
spilling

Ice Cream Spoon

Used to eat Package 1 118.00 118.00

ice cream

TOTAL: Php 171.00

H. Raw Materials Requirements
Table 33
Raw Materials
Name & Photo Unit Quantity Unit Cost Total cost
(Php) (Php)

Carrot

Piece 3 20 60.00

Squash

Piece 1 28.00 28.00

Condensed Cow Bell

Piece 3 39.00 117.00

Nestle All Purpose Cream

Piece 3 75.00 225.00

Quezo
Piece 2 39.00 78.00

TOTAL: Php 508

I. Waste Disposal System
Wastes generated during business manufacturing include wooden spoons, cans of all-
purpose cream, cans of vegetable peelings, and boxes of such creams. To practice proper waste
disposal, the management will supply trash cans, garbage bags, and trash bins for both
biodegradable and non-biodegradable waste on the working area. Peelings from vegetables can be
utilized as plant fertilizer; these wastes will be separated from the rest. It is a approach that
Veggiem Company is practicing which is a comprehensive strategies to efficiently manage wastes
from the origin until the final disposal.

J. Quality Control System

To assure customers of the quality of the ice creams to be sold, management must put in
place a quality control system. This will foster a positive working relationship between
management, staff, and the company and help to minimize errors that could result in loss or waste.
The following guidelines must be put into practice and to be maintained by every employee in
order to achieve quality control.

1. To avoid anything damaging the ice cream's quality, the working area must always be
sanitized and clean.
2. Workers must wear proper attire when making the product. (Gloves for scooping the
ice cream, aprons and hair net or headband to prevent hair from falling, etc.)
3. All employees must know proper hygiene.
4. The company also considering the health of the staff where the company will have a
screening for each staff for health and safety protocols.
5. All the ingredients, measurements and materials/equipment’s used in the process are
properly listed to maintain the taste and the quality of the ice cream.
6. The company will implement monthly specification and inspection for the facilities and
product ingredients used in the ice cream.
7. Management must give their staff clear instructions on the right do’s and don'ts in order
to preserve the quality of the product.
8. The company will conduct reviews through questionnaires in order to improve
consumers concerns.
K. Production Cost
K.1 Total Production Per Year
Table 34
Total Production Per Year
Year Capacity Per Day Number of Working Total Production
Days in A Year Per Year
1 120 360 43,200
2 128 360 46,080
3 135 360 48,600
4 143 360 51,480
5 150 360 54,000

Forbidden Ice Cream determined the maximum capacity of production of 150 per day to
produce. The business computed it by producing 19 cups of ice cream per hour and multiplied by
8 working hours per day to get 152 and remove the excess to be exact 150 as the maximum capacity
of production per day.

K.2 Production Cost Per Unit

The annual rate of 10% is a depreciation rate given by the PSA (Philippine Statistic
Authorities) (2019) Updated Production Costs and Returns of Selected Agricultural Commodities,
it is stated that depreciation increase of 10.0 percent per annum in the year of 2019.

Table 35
Production Cost Year 1
Products Cost Per Unit Yearly Production Yearly Production
Cost per Unit (in
Php)
Carrots 14 17,712 247,968
Squash 14 25,488 356,832
Total Variables Cost Per Year 604,800
Total Cost of Production Per Year 604,800

Table 35 shows the production cost in year 1, as it observes in the table that the cost per
unit calculated in the expenses generated in each flavor and divided by it to the expense and the
frequency that had been made.
 Table 36
Production Cost Year 2
Products Cost Per Unit Yearly Production Yearly Production
Cost per Unit (in
Php)
Carrots 12.6 18,893 238,052
Squash 12.6 27,187 342,556
Total Variables Cost Per Year 580,608
Total Cost of Production Per Year 580,608

Table 36 shows the production cost in year 2, as it observes in the table that the cost per
unit decreases because of the 10% depreciation multiplied by the cost per unit from the year 1 and
then subtract. Therefore, 14*10%= 1.4 and then 14 -1.4 =12.6 cost unit per unit for year 2.

Table 37
Production Cost Year 3
Products Cost Per Unit Yearly Production Yearly Production
Cost per Unit (in
Php)
Carrots 11.34 19,926 225,961
Squash 11.34 28,674 325,163
Total Variables Cost Per Year 551,124
Total Cost of Production Per Year 551,124

Table 37 shows the production cost in year 3, as it observes in the table that the cost per
unit decreases because of the 10% depreciation multiplied it by cost per unit in year 2 and then
subtract.
 Table 38
Production Cost Year 4
Products Cost Per Unit Yearly Production Yearly Production
Cost per Unit (in
Php)
Carrots 10.2 21,107 215,291
Squash 10.2 30,373 309,805
Total Variables Cost Per Year 525,096
Total Cost of Production Per Year 525,096

Table 38 shows the production cost in year 4, as it observes in the table that the cost per
unit decreases because of the 10% depreciation multiplied it by cost per unit from year 3 and then
subtract.

Table 39
Production Cost Year 5
Products Cost Per Unit Yearly Production Yearly Production
Cost per Unit (in
Php)
Carrots 9.18 22,140 203,245
Squash 9.18 31,860 292,475
Total Variables Cost Per Year 495,720
Total Cost of Production Per Year 495,720

Table 39 shows the production cost in year 5, as it observes in the table that the cost per
unit decrease because of the 10% depreciation multiplied it by cost per unit from year 4 and then
subtract.
 IV.
ORGANIZATIONAL
PLAN
IV. Organizational Plan
A. Legal form of Business

Veggieam corporation has chosen to register as a corporation in terms of its legal form of
business. This decision may have been made to provide limited liability protection for the
company's founders and investors, as well as to facilitate the raising of capital through the issuance
of stocks. A board of directors is in charge of running a corporation, and they are chosen by the
stockholders. The board of directors is in charge of managing the corporation's daily operations
and making important business decisions. Officers who are in charge of running the company's
daily operations, like the CEO, CFO, and COO, are normally chosen by the board of directors.
The officers are responsible for the corporation's performance and answerable to the board of
directors. Compared to alternative business structures like sole proprietorships or partnerships,
corporations can raise capital more easily. To raise capital for growth or other business needs, they
can issue stocks or bonds to investors.

Salary decisions in corporations are normally made by the board of directors and executive
management. They might use a variety of techniques, like comparing compensation to industry
norms or taking into account each employee's performance and contributions. In order to keep
employees, the corporation may also provide a range of perks and pay plans. Bonuses, stock
options, retirement plans, and healthcare benefits are a few examples of these.

If corporation will dissolve, then there will be a dissolution agreement:

This agreement (the “Agreement”) is made and entered into as of [date] by and between
[Corporation Name] (the “Corporation”), and its shareholders, [Shareholder 1 Name],
[Shareholder 2 Name], and [Shareholder 3 Name] (collectively, the “Shareholders”).
2

The Corporation shall dissolve and wind up its affairs in accordance with the laws of the
state of incorporation. Upon the dissolution of the Corporation, its assets shall be distributed in the
following order of priority. The payment of all the Corporation's unpaid bills and responsibilities,
including taxes and any other payments payable to third parties. The fulfillment of any unfulfilled
debts owed to the shareholders. The distribution of the corporation's residual assets to the
shareholders according to their stakes in the entity. The Corporation shall terminate its business
and cease to exist upon the successful completion of the wind-up procedure. The Corporation shall
take all necessary actions to bring any legal actions or claims in which it is engaged to a successful
conclusion, including resolving any disputes or claims brought against it. The Shareholders shall
assist the Corporation, its officers, and directors in the liquidation and distribution of the Business.
The Corporation shall take all necessary actions to bring any legal actions or claims in which it is
engaged to a successful conclusion, including resolving any disputes or claims brought against it.
The Shareholders shall assist the Corporation, its officers, and directors in the liquidation of the
Company's assets and in the distribution of its assets. The laws of the state of incorporation shall
govern this Agreement and be applied in its interpretation.
 This Agreement replaces all past discussions, agreements, and understandings between the
parties and embodies their full understanding.

IN WITNESS WHEREOF, the parties have executed this Dissolution Agreement as of the date
first written above.
[Corporation Name]
By: [Officer Name], [Title]
[Shareholder 1 Name]
[Shareholder 2 Name]
[Shareholder 3 Name]

Mission
To serve healthy ice cream with the best vegetable flavored available selection that
embrace a new understanding of health and happiness as low as possible price. `

Vision
To be recognized on an international market as the company that offers its consumers the
healthiest ice cream in the Philippines.

Table 40
Legal Documents
Document Amount Fee (Php)
Business Permit 1,500.00
Community Tax Certificate 1,000.00
Documentary Stamp Tax Form 200.00
Name Reservation-Security and Exchange 140.00
Commission
Printing Invoices and Receipts 2,500.00
Registration-Bureau of Internal Revenue 500.00
Security and Exchange Commission 1,500.00
Barangay Clearance Permit 25.00
Sanitary Permit 300.00
Mayor’s Permit 200.00
Certificate to Operate 200.00
Department of Trade and Industry 200.00
Registration Certificate
Other Documents 160.00
TOTAL: Php 8,425
B. Organizational Structure

Figure 6. Employees/Staff

The forbidden Ice cream will be having 2 employees to stay in the store 1 for the cashier,

1 manager, and 1 server. The manager will be the one to supervise and train the server and

cashier. The cashier needs to be able to accurately process transactions and handle cash or

electronic payments. This includes being able to quickly and efficiently scan or input items,

calculate totals, and provide correct change or process payments without error. The server is

expected to perform and provide a friendly, efficient, and high-quality service. Proper assignment

of responsibilities can facilitate seamless and comprehensive business operations. These

employees will only apply if the business is well expand.

C. Qualification for Officer

This section will discuss about the qualifications, requirements as well as the job
description of the employees to be hired in the business in order to have a clear guidance of their
tasks.

Table 41
Job Specification
POSITION NO. OF EMPLOYEES REQUIRMENTS

• Male or Female
• 22-35
• Have a bachelor’s
degree in business
Manager 1 administration,
management, or
a related field.
• Strong leadership
skills
• Problem-solving
skills
• Financial
management skills

• Male or Female
• at least 18 years old
and above
• There are formal
education
requirements for
cashier positions, it
Cashier 1 advantageous if
it has a high school
diploma
• Had a knowledge of
basic math skills
• Familiarity with
technology
• Customer service
skills
 • Male or Female
• Must at least be 18
years old and above
• There are no formal
education
requirements for
Server 1 cashier positions, but
it may be
advantageous to have
a high school
diploma
• Physical stamina
• Ability to work in a
team
• Friendly and outgoing
personality
• Fast learner
• Can work with
minimal supervision

Table 42
Job Description
POSITION JOB DESCRIPTION

• Managers of ice cream parlors are in

charge of supervising the hiring,
in-house training, and performance
reviews of staff members.
Manager • Must create and put into action plans
and strategies, establish priorities,
and allot resources appropriately.
• Must be accountable for managing the
store's financial resources, including
forecasting, budgeting, and financial
reporting.
• Managers must make sure that
consumers are delighted with their
experience at the store.
 • They should greet customers in a
friendly and welcoming manner.
• They must take orders from customers
and ensure that orders are accurate.
• They should be able to prepare
ice cream and other desserts according
to the store's standards.
• They must ensure that the store is clean
and tidy at all times.
Cashier/ Server • They must be able to handle cash and
other forms of payment accurately.
• Must provide excellent customer
service by answering questions,
addressing concerns, and ensuring
that customers are satisfied with their
orders.
• They must follow health and safety
protocols, including wearing a
face mask and observing social
distancing measures.
• They must ensure that ice cream and
other supplies are stocked and readily
available for customers.
• Collaborating with team members: Ice
cream shop servers must be able to
work well with other team members to
ensure the store runs smoothly.
• They should maintain a positive
attitude and represent the store in a
positive light.
 D. Gantt Chart of Activities
One year plan
Table 43
Gantt Chart
ACTIVITIES JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC
Business and
Financial
Plan
Preparation
Processing of
legal
requirements

Processing
the lease of
contract

Preparation
of business
location
Equipment
installation
and
acquisition

Preparing all
the operation
materials
Hiring of
employees &
promotion
Development
of the
establishment
Marketing
and
Promotion
Business
operation
proper
E. Administrative Expenses
Table 44
Projected Annual Salaries
POSITIONS Monthly Salaries (Php) Annual Salaries (Php)
Manager 30,000 360,000
Cashier/Server 15,000 180,000
TOTAL: 45,000 540,000

Table 44 shows the projected annual salaries for employees and staff. The projected annual
sales have been used in the corporation to determine the minimum wage. According to the NWPC
or National Wages Productivity Commission that every business should offer minimal
remuneration to all employees to protect vulnerable employees due to unfairly low pay. Minimum
rate for Cashier/Server in Cavite is PHP. 500.00 per day and minimum salaries for Manager is
30,000 monthly.

Table 45
13th Month Pay
POSITION Annual Salaries (Php) 13th Month Pay
Manager 360,000 30,000
Cahier/Server 180,000 15,000
TOTAL: 540,000 45,000

Table 45 shows the 13th month pay compensation to all the employees/staff. 13th-month
pay is a mandatory cash benefit given to all qualified employees on or before the 24th of December
of the current year so that employees may be able to properly celebrate Christmas and New Year.
 Table 46
Phil Health Premium Contribution
POSITIONS PHILHEALTH ANNUAL
CONTRIBUTION
ER EE TOTAL
Manager 450.00 450.00 900 10,800
Cashier/Server 450.00 450.00 900 10,800
TOTAL: 900 900 1,800 21,600

Table 46 shows Phil Health Premium Contribution.As most of the Filipino citizens are
aware of, PhilHealth offers outstanding health benefits to its members which is a great help when
medical assistance is highly needed. PhilHeath Members should be actively paying for their
monthly premiums for who knows when you need the member's benefits the most. Monthly or
quarterly premium contributions of PhilHealth Members are based on fraction of salary range. The
PhilHealth Contribution Table for Employed Members below shows the Total Monthly Premium
based on Monthly Salary Range. The new Phil Health premium contribution rate for 2023 is set at
4.50% of the monthly basic salary, to be paid equally by employers and employees. TaxPhilippines
(2023).

Table 47
Employer’s Share
POSITIONS SSS ANNUAL
CONTRINUTION
ER EE TOTAL
Manager 1,900 900.00 2,800 33,600
Cashier/Server 760.00 360.00 1,120 13,440
TOTAL: 2,660 1,260 3,920 47,100

Table 47 shows Employer’s share in SSS. The 14 percent is composed of 9.5 % Employer
Share and 4.5% Employee Share while the minimum Monthly Salary Credit (MSC) will be
increased from P3,000 to P4,000 and the maximum MSC from P25,000 to P30,000. The 1 %
increase is to be shouldered by the employer and the employee’s share remains at 4.5%.
 V.
FINANCIAL
PLAN
 V. FINANCIAL PLAN

The financial plan section will determine the profitability and stability of the proposed
business. This aspect will exhibit the result of the financial position of the business.
This section will discuss the total project cost, source of financing, projected cash flow,
Projected income statement, projected balance sheet, return of investment, pay back periods, sales
ratio, break-even analysis, and the list of assumptions used. It will also include a schedule of
depreciation, expenses, salaries, salary deduction, administrative expenses, and cost.

A. Total Projected Cost

The total projected cost will require PHP 44,300 to be used in capital assets, pre-operating
expenses and working capital in order to start the business.

Table 48
Total Projected Cost
FIXED CAPITAL ASSETS
Equipment 3,482
Machineries 6,025
Furniture-Fixture 1,500
Total PHP 11,007
PRE-OPERATING EXPENSES
Marketing Expenses 3,330
Permit and Licenses 8,425
Kitchen Utensils 620
Packaging Supplies 171x30 = 5,130
Total PHP 17,505
WORKING CAPITAL
Raw Materials 508x30=15,240
Office Supplies 548
Total PHP 15,788
TOTAL PROJECT COST PHP 44,300
 B. Source of Financing

The proposed business projects a total cost of ₱ 44,300 is to be divided and provided by the
partners of the amount with the different percentage of 37.5% profit and losses with initial
investment of ₱16,613, 25 % profit and losses with initial investment ₱ 11,075, and three of the
investors has 12.5 % profit and losses with initial investment of ₱5,538.

Table 49
Sources of Financing
PARTNERS INITIAL INVESTMENT PROFITS AND LOSSES
(%)
Aleckxa Lazaro 16,613 37.5 %
Ericka Junio 11,075 25 %
Kyla Marie Ligon 5,538 12.5 %
Alliah Sarabia 5,538 12.5 %
Lawrence Magtubo 5,538 12.5 %
TOTAL 44,300 100%
C.1 Projected Cash Flow
Table 50
Projected Cash Flow
OPERATING Year 1 Year 2 Year 3 Year 4 Year 5
ACTIVITIES
Cash received from 864,000 921,600 972,000 1,029,600 1,080,000
customers
Payments to suppliers (292,608) (312,115) (329,184) (348,691) (365,760)
Payment for utilities (36,000) (39,060) (42,380) (45,982) (49,890)
Payment for taxes and (8,425) (10,953) (14,239) (18,511) (24,064)
licenses
Payment for office (548) - (212) - (448)
supplies
Payment for kitchen (620) (300) (300) (620) (300)
utensils
Payment for equipment (3,482) (2,712) (2,712) (2,712) (2,712)
Payment for marketing (3,330) (3,000) (3,200) (3,000) (3,200)
expense
Net cash provided by (500,987) (553,460) (579,773) (610,084) (633,626)
(used in) operating
activities
INVESTMENT ACTIVITIES
Payments to acquire (6,025) - - - -
machineries
Payments to acquire (1,500) - - (1,500) -
furniture
Net cash provided by (7,525) - - (1,500) -
(used in) investing
activities
FINANCING ACTIVITIES
Cash received as 44,300 - - - -
investments by partners
Net cash provided by 44,300 553,460 579,773 608,584 633,626
(used in) financing
activities
Net Cash 530,237 553,460 579,773 608,584 633,626
Cash and Cash - 530,237 1,083,697 1,663,470 2,272,054
Equivalents at the
Beginning of the Period
Cash and Cash 530,237 1,083,697 1,663,470 2,272,054 2,905,680
Equivalents at the End of
the Period
C.2 Statement of Projected Income
Table 51
Statement of Projected Income
Accounts Year 1 Year 2 Year 3 Year 4 Year 5
Sales 864,000 921,600 972,000 1,029,600 1,080,000
Less: Cost of 292,608 312,115 329,184 348,691 365,760
Sales
Gross Profit 571,392 609,485 642,816 680,909 714,240
Less: Expenses
Total 52,405 53,131 59,843 68,113 77,902
Operating
Expenses

Net Income 518,987 556,354 582,973 612,796 636,338

before tax
Tax Expenses 155,696 166,906 174,892 183,831 190,901
(30%)
Net Income 363,291 389,448 408,081 428,965 445,437
After tax

Starting of net
income per
partners (5)
Starting of net 136,234 146,043 153,030 160,862 167,039
income per
partners
(37.5%)
Starting of net 90,823 97,362 102,020 107,241 111,359
income per
partners
(25%)
Starting of net 45,411 48,681 51,010 53,621 55,680
income per
partners
(12.5%)
Starting of net 45,411 48,681 51,010 53,621 55,680
income per
partners
(12.5%)
Starting of net 45,411 48,681 51,010 53,621 55,680
income per
partners
(12.5%)
C.3 Projected Statement of Financial Position

Table 52

Statement of Financial Position

VEGGIEAM CORPORATION
FINANCIAL POSITION
JUNE 2023

ASSETS

Current Assets

Cash 32,125

Office Supplies 548

Kitchen Utensils 620

Total Current Assets 33,293

Non-Current Assets

Machineries and Equipment 9,507

Less: Accumulated Depreciation -

Furniture-Fixture 1,500

Less: Accumulated Depreciation -

Total Non-Current Assets 11,007

TOTAL ASSETS 44,300

LIABILITIES AND OWNER’S

EQUITY

Liabilities

Current Liabilities -

Total Current Liabilities -

 Owner’s Equity

Partner’s Capital 44,300

Retained Earnings -

Total Owner’s Equity 44,300

TOTAL LIABILITIES AND 44,300

OWNER’S EQUITY

Table 53
Return of Investment
Year 1 Year 2 Year 3 Year 4 Year 5
Gain from 864,000 921,600 972,000 1,029,600 1,080,000
Investment
Less 44,300 44,300 44,300 44,300 44,300
Beginning
Investment
Difference 819,700 877,300 927,700 985,300 1,035,700
Divided by: 44,300 44,300 44,300 44,300 44,300
Beginning
Investment
ROI 18.50 19.80 20.94 22.24 23.38

Return on investment (ROI) is a performance metric used to assess an investment's

effectiveness or profitability or to compare the effectiveness of several investments. The
company's ROI for each peso of stock is PHP 18.50 in year 1; PHP 19.80 in year 2; PHP 20.94 in
year 3; PHP 22.24 in year 4; and PHP 23.38 in year 5.

Table 54
Payback Period
Months Payback Period
Investment 44,300
Less: Net Income 363,291 12
for Year 1
Difference 318,991 1 year

The proposed business will make back its initial investment in profits in a year.
 Table 55
Sales Ratio
Year 1 Year 2 Year 3 Year 4 Year 5
Gross Profit 571,392 609,485 642,816 680,909 714,240
Divided: Net 864,000 921,600 972,000 1,029,600 1,080,000
Sales
Sales Ratio 66.13% 66.13% 66.13% 66.13% 66.13%

The sale ratio indicates the ratio of gross profit to net sales. The ratio of the proposed
business has remained the same at 66.13% from year to year 5.