For Printhh

CHAPTER I
EXECUTIVE SUMMARY
Name of the business
“BANECO” is the official name of the business. The word “BANECO” is the
abbreviation of Banana Eco-bag. BANECO will help in reducing waste and advocating the
use of eco-friendly products by providing customers with sustainable eco-bags. The name of
the product is simple and can be easily remembered. Lastly, the name is not easily mistaken
for another for it is unique.
Description of the Industry

2JZ Partnership will introduce the BANECO to the market and will help in minimizing
the plastic waste in the environment. Eco-friendly products have been gaining steadily
popularity in the latest trends. Using natural resources as their main material helps in waste
management and can lesser the cost of production. The company will manufacture this
sustainable eco-bag which can be reused and can be an alternative to single-use paper or
plastic bags. The product shall be manufactured using the latest manufacturing paper making
machines.
Description of the Project
BANECO is a sustainable eco-bag. It is an eco-bag made of banana stem fiber. The

project will focus on the use of banana stem fiber as its main material in producing eco-bags.
Banana fibers are good absorbent, highly breathable, quickly dry with high tensile strength,
biodegradable and have no negative effect on environment. The project will acquire banana
stems from local farmers especially those farmers whose main crops are banana plant and create
this stems into eco-bags. BANECO will come with a handy string and pleasing design with
different sizes. The primary consumers of this project are malls, supermarket and other stores
that will use it as their packaging material for their products
1
Location of the Project
The business site shall be located at situated at Gubang, Pagadian City, Zamboanga del
sur. The partners have decided to be the main manufacturing site of the business as it is
not near any residential and commercial land making it the ideal location.
Summary of Findings and Conclusions
● Market Feasibility
Based on the conducted study by the proponents, the project can be concluded as
feasible in terms of its market aspect. Though there is an excess supply in the
market demand, the researchers believe that enough market share can be
established in order to push through the objectives of the business.
● Technical Feasibility
The management aspect of the project through the research conducted by the
proponents is concluded as feasible. With the right employees hired into the
business the project objectives can be attained.
● Financial Feasibility
Through the survey conducted by the proponents regarding the feasibility of the
business in terms of its marketability and technicality, the financial aspect of the
project is concluded as feasible. With enough market share which equates to
enough demand for the products of the business and with the information
regarding the technicalities of the business on how to produce the products which
will satisfy the established demand, the business is expected to earn profit for it to
continually push through its objectives and maintain its presence in the market.
● Socio – Economic Feasibility
2
The business as committed it shall be in achieving its financial and market goals
shall be as devoted to performing the responsibilities it has accepted towards
helping the community. The business though only a legal entity shall perform acts
of a citizen through its employees, one which is able of compassion towards
others, a citizen committed towards the creation of opportunities for the
community it is within. Through compassion and logic combined the socio-
economic aspect of the project can be attained, therefore leading to the conclusion
that it is feasible.
GENERAL CONCLUSION
Through the study conducted by the proponents, we hereby conclude that the totality of our
business is feasible.
3
CHAPTER II
MARKET STUDY
Bagnana is a sustainable eco-bag that aims to reduce waste generation and promote the
reuse and recycling of waste products. It is an eco-friendly product that do not have a negative
effect on the environment whether in their production, use or disposal. The intended users of this
product are those convenience stores, grocery stores, dry goods, bakeshops and other store
owners who are willing to advocate sustainability in their venture by using sustainable bags as
their packaging. Specifically, Bagnana will be first introduce at the locality of Pagadian City
which its manufacturing site is to be situated at Danlugan, Pagadian City, Zamboanga Del Sur.
This chapter encompasses the demand, supply, demand and supply analysis, projected
market share, projected revenue and marketing strategies and programs of Bagnana.
A. Study of Demand
Target Market
Pagadian City government proclaimed City Ordinance No. 2016-365 – An ordinance adopting an
updated comprehensive solid waste management ordinance in the city of Pagadian. This
ordinance is known as “The Pagadian City Ecological Solid Waste Management (ESWM)
Ordinance 2016.
The target market for this product are the convenience stores, grocery stores, dry goods and
bakeshops who uses eco-bag as their main source of packaging. These businesses preferred this
type of packaging because it suits for the products they sell which are only dry ones. The
proponents did not include those businesses who had their own customize packaging and those
businesses who sells products that are succulent.
4
Business Type Population Within the City
2019 2020 2021 2022 2023
Convenience Stores 16 21 28 33 39
Pharmacy 17 19 21 23 25
Dry Goods 136 146 163 187 200
Bakeshops 15 22 30 41 57
TOTAL 184 208 242 284 321
Table 2.1. Current Primary Target Population
Source: Pagadian City Registry and Licensing Division
The survey showed that out of 178 respondents, there were only 153 businesses who used eco-
bags as their primary source of packaging that is equivalent to 86%, and 25 respondents
equivalent to 14% who did not used eco-bags because they used other packaging.
Historical Demand
The demand for using eco-bags as primary source of packaging in Pagadian City can be
gathered through surveying the 178 respondents composed of selected convenience stores,
grocery stores, dry goods and bakeshops. The proponents have gathered the following data:
Historical Demand
By Size
Sizes 2019 2020 2021 2022 2023
Small 10,698 12,093 14,070 16,512 18,663
Medium 11,824 13,366 15,551 18,250 20,627
Large 7,695 8,699 10,120 11,877 13,424
Exra Large 7,320 8,274 9,627 11,298 12,769
Table 2.2: Total Historical Demand of Businesses Who Uses Eco-bags for the Past Five Years
5
The historical demand is computed by getting the average of the bundles purchased by
the businesses, multiplied by 12 which represents the total months of the year. The result is then
multiplied to the total population target for the past five years. After getting the total demand per
bundle, it is then multiplied to the average percentage of the 4 corresponding sizes that the
respondents had answered. (See Appendix)
Past Demand Pattern
Historical Demand
25,000
20,000
15,000
10,000
5,000
0
2018 2019 2020 2021 2022
Small Medium Large Exra Large
Figure 2.1: Historical Demand Pattern
The historical demand of eco-bags is increasing due to the ordinance proclaimed by the
City Mayor about the banned of plastic bags for all businesses to promote solid waste
management. Business establishments are required to use paper bags or eco-bags as their sources
of packaging especially those who did not have their own packaging. Based on the interview
conducted by the proponents, the demand for small and medium eco-bags are higher compared
to large and extra-large because mostly the consumers only purchased small amount of items of
their products and they often purchased bulk ones.
Projected Demand
The projection on demand of eco-bags is expected to rise for the next five years. To get
the projected demand, total number of business from 2023 is multiplied by the average growth
rate which is 15% to get the next year’s target population. Then, the target population of each
6
corresponding year is multiplied by the average bundles of eco-bags and multiplied by 12 which
represents the number of months in a year to get the total demand of bundles. The result is then
multiplied to the corresponding percentages of the four sizes to get the projected demand of its
sizes. The data can be shown below.
Projected Demand
Sizes 2024 2025 2026 2027 2028
Small 21,462 24,682 28,384 32,642 37,538
Medium 23,722 27,280 31,372 36,078 41,489
Large 15,438 17,754 20,417 23,479 27,001
Extra Large 14,685 16,888 19,421 22,334 25,684
Table 2.3: Projected Demand for the Next Five Yearas
Projected Demand
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2023 2024 2025 2026 2027
Small Medium Large Extra Large
Figure 2.2: Projected Demand
Evaluation of Projected Demand
The study of the market for eco-bags was done through survey questionnaires, inquiries,
and interviews of the target market. It implicates the positivity of a continuous increase in
7
demand of its sizes for eco-bags. Based on increased on demand, it is certain for the eco-bags to
have in the market.
B. Study of Supply
Competitors
Baneco is the first manufacturing company that will be introduce in Pagadian City since
there was no record of established manufacturing company of eco-bags in the city. Most
businesses are just purchasing outside the city or online shops. The proponents determined some
major businesses in the locality as competitors since they are the one who provided supply for
the small businesses. However, they are only retailing it from outside and they are not the one
who manufactures it. The public will be more likely to trust the business because it is also a local
brand.
The determination of suppliers is based on the question number 4 on the survey questionnaire,
“Where do you buy your eco-bags?” Based on the result, these are the competitors.
Competitors
Taft Mart
La Suerte
Super V
B.E
Cariaga
Gaisano
Others
Table 2.4: Current Competitors
Historical Supply
The historical supply gathered by the proponents cannot be determined due to

insufficiency of data provided by the business entities on the past 5 years. Historical supply will
remain constant as to what is provided by the businesses.
Competitors Small Medium Large Extra Large
8
Taft Mart 1200 1920 960 600
La Suerte 1440 1080 840 600
Super V 900 840 120 120
B.E 1500 1740 960 840
Cariaga 1200 1200 900 720
Gaisano 1560 1200 960 780
TOTAL 7800 7980 4740 3660
Table 2.5: No. of Purchases of Eco-bags Annually
Projected Supply
Sizes 2024 2025 2026 2027 2028
Small 8,970 10,316 11,863 13,642 15,689
Medium 9,177 10,554 12,137 13,957 16,051
Large 5,451 6,269 7,209 8,290 9,534
Extra Large 4,209 4,840 5,566 6,401 7,362
Table 2.6: Projected Supply
Projected Supply
Projected Supply
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
2023 2024 2025 2026 2027
Small Medium Large Extra Large
Figure 2.3: Projected Supply for the Next Five Years
9
The data is gathered through the interview of suppliers who purchased the product
outside the city. To get the projected supply, the current supplies is multiplied by 12 which
represents the total months of the year and then multiplied it to the average growth rate of 15%.
The process is being followed for the further years.
Demand-Supply Analysis
Demand and supply gap analysis is very important in analyzing the current market
because it shows some of the market deficiencies or supply gaps to determine how many
products or services is needed to satisfy the demand. The demand gap is computed by subtracting
the projected demand of its sizes from projected supply of the four sizes. The table below shows
the available market for the next 5 years:
Demand Gap
2024 2025 2026
Sm Medi Lar Extra Sm Medi Lar Extra Sm Medi Lar Extra

all um ge Large all um ge Large all um ge Large
DEMAND 21,4 23,722 15,4 14,685 24,6 27,280 17,7 16,888 28,3 31,372 20,4 19,421
62 38 82 54 84 17
SUPPLY 8,97 9,177 5,45 4,209 10,3 10,554 6,26 4,840 11,8 12,137 7,20 5,566
0 1 16 9 63 9
DEMAND 12,4 14,545 9,98 10,476 14,3 16,726 11,4 12,048 16,5 19,235 13,2 13,855
GAP 92 7 66 85 21 08
2027 2028
Small Medi Larg Extra Small Medi Larg Extra Large
um e Larg um e
e
32,64 36,07 23,47 22,33 37,53 41,48 27,00 25,684
2 8 9 4 8 9 1
13,64 13,95 8,290 6,401 15,68 16,05 9,534 7,362
2 7 9 1
10
19,00 22,12 15,18 15,93 21,84 25,43 17,46 18,322
0 1 9 3 9 8 7
Table 2.7: Demand Gap for Business Entities Who Uses Eco-bags
Market Share
The market share refers to the percentage of the market that a commodity has the
potential to penetrate. A portion of business demand is still unmet by the current supply.
Nonetheless, it cannot cater to all the demand gaps due to the capacity provided. So, the project
will be based on the capacity of 12,960 bundles of eco-bags produced annually in each size,
dividing it by the total projected demand of its corresponding sizes; the expected market share of
eco-bags is 15% for small, 13% for medium, 19% for large and 18% for extra-large.
Small Medium
Supply Supply
Market Share Market Share
Unsatisfied 39% Unsatisfied
43% 42% Demand 48% Demand
15% 13%
Extra-Large
Large
Supply Supply
29% Market
35% Market Share 53% Share
45% Unsatis-
Unsatisfied 18%
Demand fied
19% Demand
Figure 2.4: Market Share
C. Marketing Strategies and Programs
Product Strategy
Bagnana is an eco- friendly manufacturing business that aims to mass produce

sustainable eco bags made out of banana pseudo stem fibers. This is an excellent way to
11
substitute the plastic bags that each business had used for their packaging. This helps the
environment reduces an amount of trashes being thrown for this product is a biodegradable one.
It can be decomposed through bacteria or other living things.
This type of eco-bag is not purely the same with the traditional paper bag because it is made with
a handle and is more durable than the traditional ones for easy shopping and for the convenience
of the consumers.
Sizes Length Width Height Capacity
Small 8.5 inches 5 inches 12 inches 6 lb
Medium 11 inches 6 inches 13 inches 11 lb
Large 13 inches 7 inches 16.5 inches 17 lb
Extra Large 16 inches 8 inches 18 inches 22 lb
Table 2.8: Measurement of each sizes of eco-bags
Pricing Strategy
The proponents used cost-plus pricing for the product. Cost-plus pricing is used to give a
reasonable price knowing the manufacturing cost of the product as well as the mark-up price for
the product. The indicated mark-up price of the product is 60%. Bundles contain 10 packs and
each pack contain 10 pieces
Total Manufacturing Costs Cost Small Medium Large Extra Large

15% 20% 27% 38%
Direct Materials 7,510,357.1 86.93 115.90 156.47 220.21
4
Direct Labor 744,000.00 8.61 11.48 15.50 21.81
Factory Overhead 971,597.14 18.74 18.74 18.74 18.74
Total Cost 114.28 146.12 190.71 260.77
Mark-up (60%) 68.57 87.67 114.42 156.46
Taxable Price (VAT) 182.85 233.80 305.13 417.23
Price Including Tax 204.79 261.85 341.75 467.30
Table 2.9: Selling Prices of each sizes of eco-bag per bundle
12
Selling Prices Inclusive of VAT 2024 2025 2026 2027 2028
Smalll 204.79 220.35 237.10 255.12 274.51
Medium 261.85 281.76 303.17 326.21 351.00
Large 341.75 367.72 395.67 425.74 458.10
Extra Large 467.30 502.81 541.02 582.14 626.39
Table 2.10: Projected Selling Prices of each sizes of eco-bag per bundle
Promotion and Advertising Strategy
Bulsita will use social media platforms as its tool to promote products. We believe that
we will be able to reach a wide target market if we are to use social media platforms because
most of the people have access to it. Bulsita has set up a Facebook Page, an official website and
Instagram account for our promotion strategy. As time goes on, we will continue to update and
post pictures or videos into our social media accounts to further promote our products. We will
also be promoting our product through radios to reach a broader market.
2024 2025 2026 2027 2028

Tarpaulins
4,000.00 4,304.00 4,631.10 4,983.07 5,361.78
Radio Broadcasting
12,000.00 12,912.00 13,893.31 14,949.20 16,085.34
Facebook Boost
10,000.00 10,760.00 11,577.76 12,457.67 13,404.45
Total Advertising
Expense 26,000.00 27,976.00 30,102.18 32,389.94 34,851.58
KULANG ADVERTISING COST AND ADDITIONAL WORDINGS FOR TARPAULINS
Channel Distribution
This provides how the product will be distributed to its final end so that for those who
cannot visit the company can still purchase the product.
1. Company Retailer Consumer
13
Company will sell goods to the retailer and it will be the one to distribute to the
consumers.
2. Company Consumer
Company will directly sell the product to the consumers.
Place Strategy
The Baneco Manufacturing Business will cover the whole city since the ordinance of not
using plastic bags has been implemented. It will supply businesses like malls, supermarkets,
convenience stores and other stores that uses eco-bag as its main packaging.
Conclusion on Market Study
Based on the study, Baneco has higher chance to establish because there is no supplier of
eco bags in the city. Based on the demand-gap analysis there is a high potential opportunity of
good business in the future. The marketing program is based on building good customer
relationships and affordable eco-bag beneficial to the consumers involved. The expected selling
price is based on cost-plus pricing with a markup of 60%. The marketing strategies to be adopted
are conventional; the proponents decided to use social media platforms and radio advertisement
to promote the product.
14
CHAPTER III
TECHNICAL STUDY
A. Product Description
Bulsita is a paper bag and not literally an eco-bag

which most people use nowadays. This term as used in the
study means that the product is eco-friendly because it is
biodegradable and cannot harm the environment. It is made
from the pseudo stem of the banana mixed with a little of
sodium hydroxide.
15
Bananabag is not entirely the same with the traditional paper bags used by
business entities because this product has only four different sizes- small, medium, large
and extra-large and it is made with handle.
B. Manufacturing Processes
The table below shows how the Bananabag will be process to arrive at its final output.
Steps Procedures
1. Shredding Shred the banana pseudo stem into

smaller pieces.
2. Boiling Place it in a pot of boiling water. Add

a 25ml of sodium hydroxide into the
mixture.
3. Strain Strain the boiled banana pseudo stem

fiber and pour it with clean water.
4. Transfer Transfer the strained banana pseudo

stem to the drum dryer machine. Let it
dry for 4 hours to make it a paper roll.
5. Paper bag making Transfer the paper rolls to the paper

bag making machine to automatically
make the final paper bag.
6. Packaging and outbound of The finished paper bags shall be manually
finished products counted and packed in bundles according to
size. Each bundle shall have a total number of
100 pieces.
Table 3.1 Manufacturing process
16
C. Plant Capacity
Machine Machine Capacity
Shredder 1000 kg/hr
Paper bag making machine 100 pcs/minute
Machine Pieces Capacity Computati Daily Weekly Monthly Yearly

on
Shredder 2 1000kg of 1000kg/25 80 400 1,600 19,200
pieces bananas/h kg per banan banana banana banana
our banana stem a stems stems stems
= 40 stems
Paper bag 1 100 18,00 108,00 432,000 5,184,00
making piece pcs/minut 0 0 paper paper 0 paper
machine e paper bags bags (all bags (all
bags (all sizes) sizes)
(all sizes)
sizes)
Machine Capacity
In pcs. Daily Weekly Monthly Yearly In Bundles
Small 4,500 27,000 108,000 1,296,000 12,960
Medium 4,500 27,000 108,000 1,296,000 12,960
Large 4,500 27,000 108,000 1,296,000 12,960
Extra Large 4,500 27,000 108,000 1,296,000 12,960
Table 3.2 Machine Capacity
17
C. Purchasing Schedule
2024
TOTAL TOTAL
PURCHASING VOLUME COST COST Exclusive of VAT

ITEM ORIGIN COST ANNUAL
SCHEDULE bi-weekly) (bi-weekly (per
month)
Zamboanga 4,800 ₱50.00 ₱240,000 ₱480,000 ₱5,760,000

Banana
City and
Stem (per 5,142,857.14
Davao City
stem)
BI-WEEKLY
Sodium Shopee 3 ₱200.00 ₱600 ₱1,200 ₱14,400
Hydroxide
12,857.14
(per
gallon)
2025
TOTAL TOTAL
PURCHASING VOLUME COST COST Exclusive of VAT

SCHEDULE bi-weekly) (bi-weekly (per
month)
Banana Zamboanga
₱6,197,76
Stem (per City and 4,800 ₱53.80 ₱258,2400 ₱516,480 5,533,714.29
0
stem) Davao City
BI-WEEKLY
Sodium
Hydroxide ₱215.2 ₱1,291.2 ₱15,494.4
Shopee 3 ₱645.60 13,834.29
(per 0 0 0
gallon)
2026
TOTAL
TOTAL
COST Exclusive of VAT
PURCHASING VOLUME COST
ITEM ORIGIN COST (bi- ANNUAL
SCHEDULE bi-weekly) (per
weekly
month)
Banana BI-WEEKLY Zamboanga 4,800 ₱57.89 ₱277,872 ₱555,744 ₱6,668,92

Stem (per City and 8
stem) Davao City 5,954,276.57
18
Sodium
Hydroxide ₱231.5 ₱1,389.3 ₱16,672.3
Shopee 3 ₱694.68 14,885.69
(per 6 6 2
gallon)
2027
TOTAL TOTAL
PURCHASING VOLUME COST COST Exclusive of

SCHEDULE bi-weekly) (bi-weekly (per VAT of
month)
Banana Zamboanga
597,980.5 6,406,801
Stem (per City and 4,800 ₱62.29 ₱298,990.27 ₱7,175,766.53
4
stem) Davao City 6,406,801.59
BI-WEEKLY
Sodium
Hydroxide ₱249.1
Shopee 3 ₱747.48 ₱1,494.95 ₱17,939.42 16,017
(per 6
gallon)
2028
TOTAL TOTAL
VOLUM
PURCHASIN E COST COST Exclusive of
G SCHEDULE bi- (bi-weekly (per Vt
weekly)
month)
Banana Zamboanga
₱ ₱643,430.7 ₱7,721,169.4 6,893,718.5
Stem (per City and 4,800 ₱67.02
₱321,715.39 8 1 1
stem) Davao City
BI-WEEKLY
Sodium
Hydroxid ₱268.1
Shopee 3 804.29 ₱1,608.58 ₱19,302.92 17,234.30
e (per 0
gallon)
Table 3.3 Purchasing Schedule

E. Production Schedule
Tasks Time Starts Duration Time End
Preparation 7:00 AM 30 minutes 7:30 AM
Raw materials 7:30 AM 30 minutes 8:00 AM

transporting
19
Shredding of banana 8:00 AM 1 hour 9:00 AM
stems
Boiling 9:00 AM 30 minutes 9:30 AM
Strain 9:30 AM 15 minutes 9:45 AM
Transfer it to the 9:45 AM 4 hours 1:45 PM

drum dryer machine
Lunch Break 12:00 PM 1 hour and 30 1:30 PM

minutes
Preparation of the 1:30 PM 15 minutes 1:45 PM

paper bag making
machine
Transferring of 1:45 PM 15 minutes 2:00 PM

paper rolls to the
paper bag making
machine
Paper bag making 2:00 PM 45 minutes 2:45 PM

for small sizes

for medium sizes

for large sizes

for extra large sizes
Storage of finished 5:00 PM 30 minutes 5:30 PM

goods.
Packaging and 5:30 PM 30 minutes 6:00 PM

outbound delivery of
20
finished goods.
Cleaning of 6:00 PM 30 minutes 6:30 PM

machines to be use
for the next day
Table 3.4. Production Schedule
F. Plant Location and Layout
Figure 3.1 Floor Plan
21
Figure 3.2 Front Elevation
Figure 3. 3 Rear Elevation
22
Figure 3.4 Right-Side Elevation
Figure 3. 4 Left-Side Elevation
23
Figure 3.5Right-Side Perspective
Figure 3.6 Left-Side Perspective
24
Figure 3. 7 Front Perspective
Figure 3.8 Plant Location
25
The factory site will be located in Gubang, Pagadian City. This place is suited for the
establishment because it is far from any commercial and residential areas which is essential
considering that it is manufacturing in essence. The area in question has a total of 350 sq.m that
cost P3,000 per sqm. The total cost of the land is P1,050,000. The building will be equipped with
a fire prevention system in order to avoid any mishaps considering the product is prone to
catching on fire. The inventory storage room also has a state-of-the-art ventilation system and
another system that will be maintaining the temperature of the room so that the finished product
will maintain its texture before delivering to its final destination.
Division 1: General Requirements

TRADE/ITEM UNIT QUANTITY UNIT COST TOTAL
Sidewalk Shed/Safety LS 80,000.00 80,000.00
Dumpsters EA 60 1,000.00 60,000.00
Engineering and Testing LS 85,000.00 85,000.00
General Labor LS 200,000.00 200,000.00
DIVISION 1: TOTAL 425,000.00
Division 2: Site works

Clear and Grub/Drainage LS 4 15,000.00 60,000.00
Shorting Engineer LS 775 100.00 77,500.00
Backfilling/Misc. Machine Days DAYS 50 1,000.00 50,000.00
Site Furnishing/ Safety Surface 100,000.00 100,000.00
26
Division 3: Concrete
TRADE/ITEM UNIT QUANTITY UNIT TOTAL

COST
Perimeter Walls CY 300 550.00 165,000.00
Interior Walls CY 250 550.00 137,500.00
Perimeter and Interior Footings CY 200 450.00 90,000.00
Rebar LBS 40,000 2.00 80,000.00
Division 4: Masonry
Scaffold LS 4 30,000.00 120,000.00

Installation
Grouting SF 50 500 25,000.00
Interior Wall SF 250 350.00 87,500.00

Finishing
Parapets LF 700 120.00 84,000.00
DIVISION TOTAL COSTS
Division 1 : General Requirements Php. 425,000.00
Division 2: Site Works Php. 287, 500.00
Division 3: Concrete Php. 472, 500.00
Division 4: Masonry Php. 316, 500.00
Total Estimated Building Costs Php. 1,501,500.00
27
Table 3.5 Total Estimated Building Costs
G. Plant and Machineries Equipment

1. Plant Machinery
MACHINERY AND EQUIPMENT
PRICE USEFUL DETAILS

LIFE
Name: WFD-400 Fully

Automatic Paper Bag
Making Machine
A. Php. 2,340,040 10 yrs.
Seller: NangJiang
Machinery
Origin: China
Quantity: 1 pc
Capacity:100
pcs/minute
Function: Paper bag
production
B. Name: Shredder
Seller: Dawn Agro
Machinery
Origin: Bocaue,
Bulacan
Quantity: 2 pc
Php. 13,800 5 yrs. Capacity: 1000 kg/hr
Function: Banana Stem
Cutter
28
Name: KW-50GF
Soundproof Diesel
C.
Generator
Seller: Shandong China
Php. 162,700 10 yrs. Quantity: 1 pc
Capacity: 50KW/hr
Function: Emergency
Power Outrage
Name: Zhongtai Steam

jacketed cooking kettle
D.
Seller: Zhongtai
Machineries
Php. 30,275 20 yrs.
Origin: China
Quantity: 2 pcs
Capacity: 50-800kg/hr
Function: For boiling
the banana stem
29
Name: JF-02 Large
drum dryer machine
E.
Seller: Guangzhou
Jinfeng Light Industry
Php. 120,927 10 yrs.
Origin: China
Quantity: 4 pcs
Capacity: 300 set/week
Function: For drying
the banana fiber.
Office Supplies
Office Supplies Supplier Price (Php) Units Total Cost
Short bond paper Crown C3 195 1 ream 195
Long bond paper Crown C3 220 1 ream 220
Ballpen Crown C3 4.5 50pcs. 225
Calculator Crown C3 695 1pc. 695
Puncher Crown C3 450 1pc. 450
Stapler Crown C3 175 3pcs. 525
Marker Crown C3 39.50 6pcs. 237
Paperclips Crown C3 2.50 100pcs. 250
Fastener Crown C3 0.70 50pcs. 35
Tape Crown C3 50 5pcs. 250
30
Short Folder Crown C3 7.50 10pcs. 75
Long Folder Crown C3 13 10pcs. 130
Rubber Stamp Crown C3 225 2 450
Scissor Crown C3 55 2pcs. 110
Printer Ink Crown C3 280 1pc. 280
Staples Crown C3 15 3 boxes 45
Office Cleaning Supplies
Office Cleaning Supplier Prices Units Total Cost

Supplies
Broom NOVO 85 3 255
Mop NOVO 200 1 200
Dust pan NOVO 85 1 85
Trash can NOVO 265 3 795
Garbage Bag NOVO 3 100 300
Pail NOVO 200 1 200
Office Equipment/Other Office Supplies
Office Equipment Supplier Prices Units Total Cost
PC with Monitor COMPRO 46,000 2 92,000
CCTV COMPRO 1,000 6 6,000
Printer COMPRO 8,800 1 8,800
Water Dispenser MR. DIY 4,000 2 8,000
Air Conditioner EMCOR 21,420 1 21,420
Fire Extinguisher CROWS 2,000 3 6,000
31
Fire Alarm EMCOR 750 3 2,250
Office Furniture and Fixtures

Office Furniture Supplier Prices Units Total Cost
and Fixtures
Desk GAISANO 1,833.33 3 5,500
Chairs GAISANO 350 6 2,100
Filing Cabinet GAISANO 12,500 2 25,000
Computer Table GAISANO 1,500 2 3,000
Office Table GAISANO 3,500 3 10,500
H. Utilities
Electricity Consumption
• Electricity- In order for the production to run within its process, electricity is highly needed.
The main source of electricity in producing the paper bags is the ZAMSURECO 1. Even though
the gasoline is much cheaper and can make the project more profitable, it is avoided for the
reason of helping the world in minimizing the pollution as part of the social responsibility of the
project. But, the alternative source will be used if the power of ZAMSURECO is not available
and to avoid disruption in the production. The time is highly valued in the production and
therefore shall not be wasted.
Annual
Cost
Equip Units Consumption Hours of Price per Days Cost
(kw) Operation (kw/hour per (Exclusive
ment
) Year of VAT)
32
Used
Automatic 1 15 3 14.8377 280 186,955.02 166,924.13

Paper Bag
Making
Machine
Cooking Kettle 2 25 .5 14.8377 280 103,863.90 92,735.63
Drum Dryer 4 4 4 14.8377 280 265,891.58 237,403.20

Machine
PC with 2 0.1 8 14.8377 280 6,647.29 5,935.08

Monitor
CCTV 6 0.04 24 14.8377 280 23,930.24 21,366.29
Printer 1 0.175 8 14.8377 280 5,816.38 5,193.20
Water 2 0.08 8 14.8377 280 5,317.83 4,748.06

Dispenser
Air 1 0.6 8 14.8377 280 19,941.87 17,805.24

Conditioner
TOTAL 552,110.83
Generator
Type kW Diesel Diesel Monthly Annual Cost Exclusive of VAT

Requirement Cost Cost
Diesel 20 10 liters 68.00 680 8,160.00 7,285.71
33
Type
● Water – The water source of the project is only the Pagadian Water District.
Departmen Daily Monthly Commercia Total Total Exclusiv

t Consumptio Consumptio l Rate per Monthl Yearly e of VAT
n (m ) n (cu. m) (cu.m) y Charge
Charge
Office 0.5 12 48.92 978.40 11,740.8 10,482.86
0
Warehouse 3 72 48.92 4,892.00 58,704.0 52,414.29

0
Total
62,897.14
● Depreciation Expense – Equipment’s used are subject to depreciation and is in need of

adjustment per year.
Equipment Cost Salvage Quantity Useful Annual

Value Life Depreciation
Building 1,501,500.00 0 1 30 yrs. 50,050.00
Automatic Paper 2,340,040 0 1 10 yrs. 234,004.00
Bag Making
Machine
Shredder 13,800 0 2 5 yrs. 5,520.00
Drum Dryer 120,927 0 4 10 yrs. 48,370.80

Machine
34
Cooking Kettle 30,275 0 2 20 yrs. 3,027.50
Delivery Truck 1,450,000 0 1 15 yrs. 96,666.67

PC with Monitor 46,000 0 2 5 yrs. 18,400.00
CCTV 1,000 0 6 5 yrs. 1,200.00
Printer 8,800 0 1 5 yrs. 1,760.00
Water Dispenser 4,000 0 2 5 yrs. 1,600.00
Air Conditioner 21,420 0 1 10 yrs 2,142.00
Total 462,740.97
I. Waste Disposal
Paper mill wastes are the leftovers made up of inks, fly ash, clays, and other fillers
created during the de-inking process, as well as fibers formed during the pulping of raw materials
but unfit for papermaking. These solid wastes are often used to generate electricity, but in many
areas, they are only dumped on land or the side of sewage channels. These practices are not ideal
and would only cause more damage than good to the environment which is why the management
concluded to use vermicomposting.
Vermicomposting is a quick and affordable way of treating organic solid waste that uses
earthworms to recycle it. Aerator, grinder, crusher, chemical degrader, and biological stimulator
are some of the functions performed by the worms. Vermicomposting paper mill wastes not only
adds value to troublesome wastes but also makes use of it in a way that supports organic farming.
It provides a chance to create jobs and aids in reducing the issue of environmental pollution.
Conclusion of Technical Study
The business is technically feasible, wherein it revolves around costing and needs to
operate. This project is risky considering that the cash required in acquiring materials and
equipment. With these constraints, the project in itself is challenging but at the same time viable.
35
The benefit that it reaps is substantial, considering the potential returns of the project. Given that
the things used in the study are realistic, the proponents also sought more than realistic results to
realize the things that might occur during the implementation.
CHAPTER I
MANAGEMENT STUDY
This part of the study focuses on the company’s management. It organizes and manages a
company’s activities to meet the organizational goals. The interlocking functions of formulating
corporate policy and organizing, planning, managing, and directing an organization’s resources
to achieve the policy objective are also studied in management study.
A. Business Organization
Baneco is a manufacturing company that manufactures eco-bags made with the pseudo
stem of the bananas. This company helps the consumers specifically the businesses in the
Pagadian City to provide a direct access to an eco-friendly packaging for their products.
Ms. Jessa Mae T. Saberon, Ms. Jenny D. Pabualan and Ms. Devine C. Zarriz, all of
whom are residents and citizens of the Philippines will run and own Baneco Manufacturing
Company as a general partnership under 2JD Partnership.
B. Organizational Structure
OWNERS
36
Accounting and Administrative
Production Supervisor Office
(Jenny D. Pabualan, CMA) (Jessa Mae T. Saberon, CPA)
Machine Warehouse Delivery

C. Capital Requirement Cashier Driver
Operators Men Man
Name of Partners Capital Contribution Profit and Loss Ratio
Jenny D. Pabualan Php 2,633,333.33 33.33%
Jessa Mae T. Saberon Php 2,633,333.33 33.33%
Devine C. Zarriz Php 2,633,333.33 33.33%
D. Staffing Requirements
Manpower Requirement and Job Description:
Position No. of Employees Job Qualification Job Description
Machine Operators 3 - Male - Responsible for
- Must be at least monitoring,

18 years of age maintaining and
and above not operating warehouse

equipment
exceeding 50.
- No derogatory - Responsible for

cleaning and quality-
record/s
checking their
Graduate with any
machinery to ensure
technical degree
everything works as
it should.
37
Cashier 1 - Must be a holder of - In-charge of
a bachelor’s degree in receiving the
accountancy. payments of
- Must have a work delivered products to

experience as a retail the customers and
cashier or in a similar they are also in-
charge in calculating
role in sales
total payments
- Basic computer
received during a
skills
time period and
- No derogatory reconcile this with
record/s total sales.
Driver 1 - Male - In-charge of
- Must be at least 18 transporting the
years of age and finished products in

above not exceeding different locations.
50
- Must be a licensed
driver
- Must have a
driving experience
Delivery Man 1 - Male - Responsible for
- Must be at least 18 pulling items from

years of age and stock rooms and
above not exceeding loading them into the
vehicle
50
- Serves as the
assistant of the
driver.
38
Warehouse Men 2 - Male - Facilitates the
- Must be at least 18 inflow and outflow of

years of age and raw materials into
above not exceeding finished product.
50
Security Guard 1 - Male - Secures premises
- Must be at least 18 and personnel by

years of age and patrolling property,
above not exceeding monitoring
surveillance
50
equipment and access
- No deregatory
points.
records
Recruitment and Training Program
Employees must undergo proper training to execute properly their work especially the
machine operators. Machines will be purchase from outside the country and thus they need to
enhance first on the proper usage and know its functions so that they can perform their duties
efficiently and effectively.
E. Management and Policies Regulation

1. Maintain Punctuality- Employees should maintain punctuality so that the
schedule of production cannot be delayed.
2. Know Dress Code – All employees working around moving machines are
prohibited from wearing loose clothing or loose jewelry.
3. Clean It Up - All equipment, tools and machinery are to be kept clean and in full
working condition, with any defects being immediately reported to maintenance
39
4. Prohibition of Alcohols and Drugs - Anyone working in the factory under the
influence of drugs or alcohol will be immediately terminated.
F. Compensation and Other Benefits
Workers No. of Basic Total Monthly 13th Yearly

Workers Monthly Compensation Month Compensation
Pay Pay
Cashier 1 P12,000 P12,000 P12,000 P156,000
Machine 3 P14,000 P42,000 P42,000 P546,000

Operators
Driver 1 P13,000 P13,000 P13,000 P169,000
Delivery Man 1 P10,000 P10,000 P10,000 P130,000
Warehouse 2 P10,000 P20,000 P20,000 P260,000

Men
Security 1 P13,000 P13,000 P13,000 P169,000

Guard
G. Gantt Chart
40
Conclusion to the management study
The proponents of the business have laid out all the necessary internal structures,
policies, and hierarchy of authority within the organization in order for the operation to be
efficient and effective at all times. The expected employees are expected to follow the rules and
guidelines stated in the management policies and schedules and must perform their tasks with
utmost productivity. The proponents have also ensured that expected employees will stay with
the business in the long run by plotting the best salary and compensation benefits.
With that, Baneco will be operating in the long run because of its efficient and
effective management supervised by the three partners.
41
CHAPTER V
FINANCIAYL STUDY
This section is one of the most important parts of the feasibility study because this is
primarily concerned with the financial status of the projected business. The financial study deals
with the expected sales to be realized for the five-year period, estimated costs and expenses to be
incurred and other schedules that will determine the profitability of the projected business.
A. Major Assumptions
1. Income Statement
-the method of reporting for the income statement is absorption costing.
2. Market Share
-the market share is based on the capacity of the machine which produces 12,960
bundles of paper bags.
3. Direct materials
✔ The system uses to account for materials is the Periodic Inventory System.
✔ All purchases are assumed to be paid on a cash basis.
✔ The total purchases of other direct materials will be computed using the
projected inflation rate.
✔ Direct materials, end will be assumed to be 10% of the total direct
materials
42
4. Inflation Rate
-The projected inflation rate is 7.6%
5. Income Tax Rate
-The income tax rate for a general partnership is 20%
6. Sales and Purchases
-All sales and purchases are on a cash basis.
7. Finished Goods End
- The Finished Goods, End will be assumed to be 10% of the total goods available for
sale.
8. Depreciation Method
The depreciation method to be use for all depreciable items is the Straight-line
Method.
9. Utilities Expense
-The Utilities Expense consists of electricity and water consumption will be paid
monthly.
10. VAT
-The business must register under the VAT system which means we opt to collect
12% VAT on our sales since the projected annual gross sales are expected to be more
than the VAT threshold. Simultaneously, avail Input VAT and deduct the same from
the Output VAT to get the VAT payable.
11. Salaries
The settlement of the salaries of the employees will be every 15 days, which is every
15th and 30th of the month.
43
12. Office Supplies
All office supplies are expected to be fully consumed as of the end of the year.
13. Employee Benefits.
SSS, PhilHealth, and Pag-Ibig Premium Payable are payable monthly.
Fixed Assests:
Land ₱ 1,050,000.00
Building 1,501,500.00
Machinery and Equipment 3,005,300.00
Furniture and Fixtures 40,722.00
Office Equipment 141,497.00
Delivery Truck 1,450,000.00
Total Fixed Assets ₱ 7,189,019.00
Pre-Operating Costs:
Feasibility Study ₱ 14,500.00
Advertising and Promotion 23,500.00
Hiring Activities 5,000.00
Training and Development 10,000.00
Business Permits and Licenses 91,430.00
SEC Registration Fee 10,000.00
VAT Registration 500.00
Total Pre-Operating Costs ₱ 154,930.00
Working Capital
Raw Materials ₱ 2,314,800.00
Office Supplies 41,124.00
Salaries Expense 109,570
Contingent Expenses 183,903
Utilities Expense 5,000.00
Cleaning Supplies 1,654.00
Total Working Capital ₱ 2,656,051.00
TOTAL PROJECT COSTS ₱ 10,000,000

Project Cost
Table 5.1 Project Cost
The three partners will each contribute an equal amount toward the 10,000,000
pesos required to launch the proposed business. It included the price of the fixed asset
44
purchases, the anticipated pre-operating costs, and the required working capital for
the acquisition of supplies, materials, and the payment of third-party services.
Sources of Financing
The three partners will each provide an equal amount of beginning capital and will share
profits and losses equally in order for Baneco to achieve its objective of offering consumers
affordable paper bags.
Name of Partners Capital Contribution Profit and Loss Ratio

Jenny D. Pabualan Php 3,333,333 33.33%
Jessa Mae T. Saberon Php 3,333,333 33.33%
Devine C. Zarriz Php 3,333,333 33.33%
Table 5.2 Sources of Financing
45
Financial Statements
Projected Statement of Financial Performance
Baneco Manufacturing Company

Statement of Financial Position
As of December 31, 2024-2028
Account Titles Notes 2024 2025 2026 2027 2028
Gross Sales 3 12,547,297.82 15,526,026.32 17,032,860.93 18,380,113.01 19,785,516.21
Less: Cost of Goods Sold 4 6,102,503.99 7,436,365.88 7,206,186.02 6,801,434.34 6,340,569.10
Gross Income 6,444,793.82 8,089,660.44 9,826,674.91 11,578,678.68 13,444,947.10
Less: Pre-Operating Expenses 5 151,680.00 - - - -
Salaries Expenses 7 624,000.00 624,000.00 624,000.00 624,000.00 624,000.00
Depreciation Expenses 8 157,608.67 157,608.67 157,608.67 157,608.67 157,608.67
Office Supplies Expense 9 50,064.00 53,868.86 57,962.90 62,368.08 67,108.05
Cleaning Supplies Expense 10 1,835.00 1,974.46 2,124.52 2,285.98 2,459.72
Utilites Expense 11 65,530.72 70,511.06 75,869.90 81,636.01 87,840.35
SSS Premium Expense 12 125,400.00 125,400.00 125,400.00 125,400.00 125,400.00

PhilHealth Contribution
Expense 13 59,400.00 59,400.00 59,400.00 59,400.00 59,400.00
Pag-Ibig Contribution 14
46
Expense 39,600.00 39,600.00 39,600.00 39,600.00 39,600.00
Transportation Expense 15 13,056.00 14,048.26 15,115.92 16,264.73 17,500.85
Advertising Expense 16 26,000.00 27,976.00 30,102.18 32,389.94 34,851.58

Business Permits and
Licenses 17 91,430.00 91,430.00 91,430.00 91,430.00 91,430.00
Repairs and Maintenance 18 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Insurance Expense 19 1,195.20 1,195.20 1,195.20 1,195.20 1,195.20
Real Property Tax 20 25,666.20 27,616.83 29,715.71 31,974.10 34,404.14
Total Expenses 1,437,465.79 1,299,629.34 1,314,524.99 1,330,552.72 1,347,798.55
Net Income Before Tax 5,007,328.03 6,790,031.10 8,512,149.91 10,248,125.96 12,097,148.55
Less: Income Tax Expense 1,001,465.61 1,358,006.22 1,702,429.98 2,049,625.19 2,419,429.71
Net Income After Tax 4,005,862.43 5,432,024.88 6,809,719.93 8,198,500.77 9,677,718.84
Projected Statement of Financial Position

Account Titles Notes Year 0 2024 2025 2026 2027 2028
47
ASSETS
Current Assets:
Cash 481,652.00 1,987,175.88 3,371,447.81 4,965,472.37 6,764,293.91 8,787,724.59
Materials Inventory - 1,739,557.14 3,668,157.14 6,035,611.54 8,875,273.28 12,223,030.10

Pre-Operating
Expenses 5 151,680.00 - - - - -
Total Current Assets 633,332.00 3,726,733.02 7,039,604.95 11,001,083.91 15,639,567.18 21,010,754.70

Noncurrent Assets:
Property, Plant and
Equipment 22 7,266,668.00 6,781,847.03 6,297,026.07 5,812,205.10 5,327,384.13 4,842,563.17
Total Noncurrent Assets 7,266,668.00 6,781,847.03 6,297,026.07 5,812,205.10 5,327,384.13 4,842,563.17
TOTAL ASSETS 7,900,000.00 10,508,580.06 13,336,631.02 16,813,289.01 20,966,951.32 25,853,317.86
LIABILITIES AND
EQUITY
Current Liabilities:
Trade and Other
Payables 23 - 605,648.84 717,687.36 789,485.39 843,897.31 891,404.44
Total Current
Liabilities - 605,648.84 717,687.36 789,485.39 843,897.31 891,404.44
Partner's Equity:
Pabualan, Capital 2,633,333.33 3,300,977.07 4,206,314.55 5,341,267.87 6,707,684.67 8,320,637.81
Saberon, Capital 2,633,333.33 3,300,977.07 4,206,314.55 5,341,267.87 6,707,684.67 8,320,637.81
Zarriz, Capital 2,633,333.33 3,300,977.07 4,206,314.55 5,341,267.87 6,707,684.67 8,320,637.81

Total Partner's Equity
48
7,900,000.00 9,902,931.21 12,618,943.66 16,023,803.62 20,123,054.00 24,961,913.42
TOTAL LIABILITIES
AND EQUITY 7,900,000.00 10,508,580.06 13,336,631.02 16,813,289.01 20,966,951.32 25,853,317.86
Projected Statement of Cash Flows

Statement of Cash Flows
Year Ended December 31, 2024-2028
49
Year 0 2024 2025 2026 2027 2028
Cash Flows from Operating
Activities:
Net Income After Tax - 4,005,862.43 5,432,024.88 6,809,719.93 8,198,500.77 9,677,718.84
Depreciation Expense - 484,820.97 484,820.97 484,820.97 484,820.97 484,820.97
Net Cash Inflow 4,490,683.39 5,916,845.85 7,294,540.90 8,683,321.74 10,162,539.81
Pre-Operating Expenses (151,680.00) 151,680.00 - - - -
Decrease (Increase) in Inventory - (1,739,557.14) (1,928,600.00) (2,367,454.40) (2,839,661.73) (3,347,756.83)

Increase (Decrease) in Trade and
Other Payables - 605,648.84 112,038.52 71,798.03 54,411.92 47,507.13
Net Cash Provided by Operating
Activities (151,680.00) 3,508,455.09 4,100,284.37 4,998,884.52 5,898,071.92 6,862,290.11
Cash Flows from Investing

Activities:
Purchase of Land 1,050,000.00 - - - - -
Constructuon of Building 1,501,500.00 - - - - -
Purchase of Delivery Truck 1,450,000.00 - - - - -

Purchase of Machineries and
Equipment 3,219,068.00 - - - - -
Purchase of Furnitures and Fixtures 46,100.00 - - - - -

Net Cash Used in Investing
Activities 7,266,668.00 - - - - -
50
Cash Flows from Financing
Activities:
Initial Investment 7,900,000.00 - - - - -
Withdrawals - 2,002,931.21 2,716,012.44 3,404,859.97 4,099,250.38 4,838,859.42

Net Cash Inflow from Financing
Activities 7,900,000.00 2,002,931.21 2,716,012.44 3,404,859.97 4,099,250.38 4,838,859.42
Increase (Decrease) in Cash 481,652.00 1,505,523.88 1,384,271.93 1,594,024.56 1,798,821.54 2,023,430.69
Add: Cash, beginning - 481,652.00 1,987,175.88 3,371,447.81 4,965,472.37 6,764,293.91
Cash, Ending 481,652.00 1,987,175.88 3,371,447.81 4,965,472.37 6,764,293.91 8,787,724.59
Projected Statement of Changes in Partner’s Equity

Statement of Changes in Partner’s Equity
2024 Pabualan Saberon Zarriz Total

Capital Beginning 2,633,333.33 2,633,333.33 2,633,333.33 7,900,000.00
Add: Share in Net Income 1,335,287.48 1,335,287.48 1,335,287.48 4,005,862.43
51
Less:Withdrawals 667,643.74 667,643.74 667,643.74 2,002,931.21
Capital Ending 3,300,977.07 3,300,977.07 3,300,977.07 9,902,931.21

Less:Withdrawals 905,337.48 905,337.48 905,337.48 2,716,012.44
Capital Ending 4,206,314.55 4,206,314.55 4,206,314.55 12,618,943.66

Less:Withdrawals 1,134,953.32 1,134,953.32 1,134,953.32 3,404,859.97
Capital Ending 5,341,267.87 5,341,267.87 5,341,267.87 16,023,803.62

Capital Ending 6,707,684.67 6,707,684.67 6,707,684.67 20,123,054.00

52
Capital Ending 8,320,637.81 8,320,637.81 8,320,637.81 24,961,913.42
Note to Financial Statements
Note 1: Compliance with the Philippines Finance Reporting Standards

The entity’s financial statements have been prepared in accordance with Philippines Financial Reporting Standards and rules
and regulations of the Philippine Securities and Exchange Commission The accounting policies implemented in the preparation of
financial statements have been applied by the entity in a consistent basis.
Note 2: Significant Accounting Policies
a. Measurement Basis- The financial statements have been prepared on the basis of historical cost and do not take into account
changing prices except Biological Assists which are measured at fair value basis.
b. Inventories- Material inventories are measured at acquisition cost.
c. Pre- Operating Expenses- Such costs are charged to expense in the year incurred.
d. Property, Plant and Equipment- Property, Plant and Equipment are recorded at cost. The straight-line method is used in
recording the depreciation on the basis of the estimated useful life of the assets.
53
e. Employee Benefits- The entity maintains a defined contribution plan which provides for benefits including Pag-ib-g, SSS, and
PhilHealth covering all regular employees.
f. Income Taxes- Income taxes on the profit for the year comprises current tax only. Current tax is the expected tax payable on
the taxable income for the year using tax rates enacted or substantially enacted as of the reporting date and any adjustment to
tax payable in respect to previous years.
Note 3: Annual Sales
2024 2025 2026 2027 2028
Small 2,255,939.71 2,791,499.80 3,062,420.92 3,304,649.93 3,557,334.20
Medium 2,884,591.55 3,569,393.58 3,915,810.99 4,225,540.79 4,548,639.37
Large 3,764,704.13 4,658,444.88 5,110,557.09 5,514,787.99 5,936,466.60
Extra Large 5,147,738.17 6,369,811.22 6,988,015.24 7,540,747.88 8,117,337.97
Annual Sales 14,052,973.56 17,389,149.48 19,076,804.24 20,585,726.58 22,159,778.15
Less: VAT Payable on Sales 1,505,675.74 1,863,123.16 2,043,943.31 2,205,613.56 2,374,261.94

Annual Sales Exclusive of
VAT 12,547,297.82 15,526,026.32 17,032,860.93 18,380,113.01 19,785,516.21
Note 4: Cost of Goods Sold
2024 2025 2026 2027 2028

54
Direct Materials, Beg. - 1,739,557.14 3,668,157.14 6,035,611.54 8,875,273.28
Add: Purchases 5,585,357.14 6,009,844.29 6,009,844.29 6,009,844.29 6,009,844.29
Freight In 1,925,000.00 1,925,000.00 1,925,000.00 1,925,000.00 1,925,000.00

Direct Materials Available for
Use 7,510,357.14 9,674,401.43 11,603,001.43 13,970,455.83 16,810,117.56
Less: Direct Materials, End 1,739,557.14 3,668,157.14 6,035,611.54 8,875,273.28 12,223,030.10
Direct Materials Used 5,770,800.00 6,006,244.29 5,567,389.89 5,095,182.55 4,587,087.46
Direct Labor (Sch. 1) 744,000.00 744,000.00 744,000.00 744,000.00 744,000.00
Factory Overhead (Sch. 2) 971,597.14 1,014,657.83 1,060,991.13 1,110,845.76 1,164,489.35
Total Manufacturing Cost 7,486,397.14 7,764,902.11 7,372,381.02 6,950,028.32 6,495,576.81

Add: Work in Process, Beg. - - - - -
Total Work Put Into Process 7,486,397.14 7,764,902.11 7,372,381.02 6,950,028.32 6,495,576.81
Less: Work in Process, End - - - - -
Cost of Goods Manufactured 7,486,397.14 7,764,902.11 7,372,381.02 6,950,028.32 6,495,576.81
Add: Finished Goods, Beg. - 1,383,893.14 1,712,429.37 1,878,624.37 2,027,218.35
Total Goods Available for Sale 7,486,397.14 9,148,795.25 9,084,810.39 8,828,652.68 8,522,795.16
Less: Finished Goods, End. 1,383,893.14 1,712,429.37 1,878,624.37 2,027,218.35 2,182,226.05
Cost of Goods Sold 6,102,503.99 7,436,365.88 7,206,186.02 6,801,434.34 6,340,569.10
55
=
Note 5: Pre Operating Expenses
Feasibility Study 14,500.00

Advertising and Promotion 23,500.00
Hiring Activities 5,000.00
Training and Development 10,000.00
Business Permits and Licenses 91,430.00
VAT Registration 500.00
Total Pre-Operating Expenses 151,680.00
Note 6: SEC Registration Fees
Business Name Reservation for

90 days 120.00
SEC Express Lane 600.00
Stock Transfer Book 500.00
BIR Documentary Staps 1,500.00
Notarial Fees 1,500.00
Total SEC Registration Fees 6,750.00
Note 7: Salaries Expenses
2024 2025 2026 2027 2028

Cashier 156,000.00 156,000.00 156,000.00 156,000.00 156,000.00
56
Driver 169,000.00 169,000.00 169,000.00 169,000.00 169,000.00
Delivery Man 130,000.00 130,000.00 130,000.00 130,000.00 130,000.00
Security Guard 169,000.00 169,000.00 169,000.00 169,000.00 169,000.00
Total Salaries Expense 624,000.00 624,000.00 624,000.00 624,000.00 624,000.00
Note 8: Depreciation Expenses
2024 2025 2026 2027 2028

Machinery and Equipment- Office 26,527.00 26,527.00 26,527.00 26,527.00 26,527.00
Building 30,030.00 30,030.00 30,030.00 30,030.00 30,030.00
Delivery Truck 96,666.67 96,666.67 96,666.67 96,666.67 96,666.67
Furniture and Fixtures 4,385.00 4,385.00 4,385.00 4,385.00 4,385.00
Total Depreciation Expense (Schedule 3) 157,608.67 157,608.67 157,608.67 157,608.67 157,608.67
Note 9: Office Supplies Expenses
Unit
Quantity Unit Cost 2024 2025 2026 2027 2028
57
Short bond paper 1 Ream 195.00 195.00 209.82 225.77 242.92 261.39
Long bond paper 1 Ream 220.00 220.00 236.72 254.71 274.07 294.90
Ballpen 50 Pieces 4.50 225.00 242.10 260.50 280.30 301.60
Calculator 1 Piece 695.00 695.00 747.82 804.65 865.81 931.61
Puncher 1 Piece 450.00 450.00 484.20 521.00 560.60 603.20
Stapler 3 Piece 175.00 525.00 564.90 607.83 654.03 703.73
Marker 6 Pieces 39.50 237.00 255.01 274.39 295.25 317.69
Paperclips 100 Pieces 2.50 250.00 269.00 292.13 317.26 344.54
Fastener 50 Pieces 0.70 35.00 37.66 40.52 43.60 46.92
Tape 5 Piece 50.00 250.00 269.00 289.44 311.44 335.11
Short folder 10 Pieces 7.50 75.00 80.70 86.83 93.43 100.53
Long folder 10 Pieces 13.00 130.00 139.88 150.51 161.95 174.26
Rubber stamp 2 Pieces 225.00 450.00 484.20 521.00 560.60 603.20
Scissor 2 Piece 55.00 110.00 118.36 127.36 137.03 147.45
Printer Ink 1 Piece 280.00 280.00 301.28 324.18 348.81 375.32
Staples 3 Box 15.00 45.00 48.42 52.10 56.06 60.32
Total 4,172.00 4,489.07 4,832.93 5,203.16 5,601.77
Multiply by 12 months 12 12 12 12 12
Annual Office Supplies
Expense 50,064.00 53,868.86 57,995.18 62,437.87 67,221.22
58
Note 10: Cleaning Supplies Expenses
Quantity Unit Unit Cost 2024 2025 2026 2027 2028

Broom 3 Pieces 85.00 255.00 274.38 295.23 317.67 341.81
Mop 1 Piece 200.00 200.00 215.20 231.56 249.15 268.09
Dust Pan 1 Piece 85.00 85.00 91.46 98.41 105.89 113.94
Trash Can 3 Pieces 265.00 795.00 855.42 920.43 990.38 1,065.65
Garbage Bag 100 Pieces 3.00 300.00 322.80 347.33 373.73 402.13
Pail 1 Piece 200.00 200.00 215.20 231.56 249.15 268.09
Total Cleaning
Supplies Expense 1,835.00 1,974.46 2,124.52 2,285.98 2,459.72
Note 11: Utilities Expenses
2024 2025 2026 2027 2028

Electricity Consumption 55,047.87 59,231.50 63,733.10 68,576.81 73,788.65
Water Consumption 10,482.86 11,279.55 12,136.80 13,059.20 14,051.70
Total Utilities Expense (Schedule 8) 65,530.72 70,511.06 75,869.90 81,636.01 87,840.35
Note 12: SSS Premium Expenses
59
2024 2025 2026 2027 2028
Machine Operators 3,990.00 3,990.00 3,990.00 3,990.00 3,990.00
Cashier 1,140.00 1,140.00 1,140.00 1,140.00 1,140.00
Driver 1,235.00 1,235.00 1,235.00 1,235.00 1,235.00
Delivery Man 950.00 950.00 950.00 950.00 950.00
Warehouse Men 1,900.00 1,900.00 1,900.00 1,900.00 1,900.00
Security Guard 1,235.00 1,235.00 1,235.00 1,235.00 1,235.00
Total SSS Premium Expense-Monthly 10,450.00 10,450.00 10,450.00 10,450.00 10,450.00
Total SSS Premium Expense- Annually 125,400.00 125,400.00 125,400.00 125,400.00 125,400.00
Note 13: PhilHealth Contribution Expenses
2024 2025 2026 2027 2028

Cashier 540.00 540.00 540.00 540.00 540.00
Driver 585.00 585.00 585.00 585.00 585.00
Delivery Man 450.00 450.00 450.00 450.00 450.00
Warehouse Men 900.00 900.00 900.00 900.00 900.00
Security Guard 585.00 585.00 585.00 585.00 585.00
Total PhilHealth Contribution Expense-Monthly 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00
Total PhilHealth Contribution Expense-
Annually 59,400.00 59,400.00 59,400.00 59,400.00 59,400.00
60
Note 14: Pag-ibig Contribution Expenses
2024 2025 2026 2027 2028

Cashier 360.00 360.00 360.00 360.00 360.00
Driver 390.00 390.00 390.00 390.00 390.00
Delivery Man 300.00 300.00 300.00 300.00 300.00
Warehouse Men 600.00 600.00 600.00 600.00 600.00
Security Guard 390.00 390.00 390.00 390.00 390.00
Total Pag-Ibig Contribution Expense-Monthly 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00
Note 15: Transportation Expenses
2024 2025 2026 2027 2028

Cost Per Liter 68.00 73.17 78.73 84.71 91.15
Consumption Per Delivery 2 2 2 2 2
No. of Delivery in a Month 8 8 8 8 8
Monthly Consumption 1,088.00 1,170.69 1,259.66 1,355.39 1,458.40
Annual Transportation Expense 13,056.00 14,048.26 15,115.92 16,264.73 17,500.85
61
Note 16: Advertising Expenses
2024 2025 2026 2027 2028

Tarpaulins 4,000.00 4,304.00 4,631.10 4,983.07 5,361.78
Radio Broadcasting 12,000.00 12,912.00 13,893.31 14,949.20 16,085.34
Facebook Boost 10,000.00 10,760.00 11,577.76 12,457.67 13,404.45
Total Advertising Expense 26,000.00 27,976.00 30,102.18 32,389.94 34,851.58
Note 17: Business Permits and Licenses
2024 2025 2026 2027 2028

Mayor's Permit Fee 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Sanitary Inspection Fee 800.00 800.00 800.00 800.00 800.00
Garbage Collection Fee 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Zoning Annual Inspection Fee 150.00 150.00 150.00 150.00 150.00
Secretarial Fee/BP Form/ Sticker 150.00 150.00 150.00 150.00 150.00
Solid Waste Management Fee 300.00 300.00 300.00 300.00 300.00
Health Clearance Fee/Worker 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Other Licensing Fees 84,530.00 84,530.00 84,530.00 84,530.00 84,530.00
Total Business Permits and Licenses 91,430.00 91,430.00 91,430.00 91,430.00 91,430.00
Note 18: Repairs and Maintenance
2024 2025 2026 2027 2028

62
Machinery and Equipment- Factory 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Machinery and Equipment- Office 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Total Repairs and Maintenance 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Note 19: Insurance Expense
2024 2025 2026 2027 2028

Building Insurance 166.00 166.00 166.00 166.00 166.00
Total Insurance Expense 1,992.00 1,992.00 1,992.00 1,992.00 1,992.00
Note 20: Real Property Tax
2024 2025 2026 2027 2028

Land 9,450.00 10,168.20 10,940.98 11,772.50 12,667.21
Building 16,216.20 17,448.63 18,774.73 20,201.61 21,736.93
Total Real Property Tax Expense (Schedule 9) 25,666.20 27,616.83 29,715.71 31,974.10 34,404.14
Note 21: Materials Inventory
2024 2025 2026 2027 2028

Banana Pseudo Stem 1,736,428.57 3,661,428.57 6,024,188.57 8,857,978.33 12,198,596.11
Sodium Hydroxide 3,128.57 6,728.57 11,422.97 17,294.95 24,433.99
Total Inventories (Schedule 10) 1,739,557.14 3,668,157.14 6,035,611.54 8,875,273.28 12,223,030.10
63
Note 22: Property, Plant and Equipment
Year 0 2024 2025 2026 2027 2028

1,050,000.00 1,050,000.00 1,050,000.00 1,050,000.00 1,050,000.00 1,050,000.00
Building 1,501,500.00 1,501,500.00 1,501,500.00 1,501,500.00 1,501,500.00 1,501,500.00
Machinery and Equipment 3,219,068.00 3,219,068.00 3,219,068.00 3,219,068.00 3,219,068.00 3,219,068.00
Delivery Truck 1,450,000.00 1,450,000.00 1,450,000.00 1,450,000.00 1,450,000.00 1,450,000.00
Furnitures and Fixtures 46,100.00 46,100.00 46,100.00 46,100.00 46,100.00 46,100.00
Total Cost 7,266,668.00 7,266,668.00 7,266,668.00 7,266,668.00 7,266,668.00 7,266,668.00
Less: Acumulated
Depreciation - 484,820.97 969,641.93 1,454,462.90 1,939,283.87 2,424,104.83
Total Carrying Amount 7,266,668.00 6,781,847.03 6,297,026.07 5,812,205.10 5,327,384.13 4,842,563.17
Accumulated Depreciation:
Building - 50,050.00 100,100.00 150,150.00 200,200.00 250,250.00
Machinery and Equipment - 333,719.30 667,438.60 1,001,157.90 1,334,877.20 1,668,596.50
Delivery Truck - 96,666.67 193,333.33 290,000.00 386,666.67 483,333.33
Furnitures and Fixtures - 4,385.00 8,770.00 13,155.00 17,540.00 21,925.00
Total Accumulated - 484,820.97 969,641.93 1,454,462.90 1,939,283.87 2,424,104.83
64
Depreciation:
Note 23: Trade and Other Payables
2024 2025 2026 2027 2028

SSS Premium Payable 125,400.00 125,400.00 125,400.00 125,400.00 125,400.00
PhilHealth Contribution Payable 59,400.00 59,400.00 59,400.00 59,400.00 59,400.00
Pag-Ibig Contribution Payable 39,600.00 39,600.00 39,600.00 39,600.00 39,600.00
VAT Payable (Schedule 5) 130,882.44 153,785.81 139,477.89 107,091.01 62,147.01
Income Tax Payable 250,366.40 339,501.56 425,607.50 512,406.30 604,857.43
Total Trade and Other Payables 605,648.84 717,687.36 789,485.39 843,897.31 891,404.44
Financial Schedule
Schedule 1: Direct Labor
2024 2025 2026 2027 2028

Warehouse Men 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00
Total Direct Labor 744,000.00 744,000.00 744,000.00 744,000.00 744,000.00
65
Schedule 2: Factory Overhead
2024 2025 2026 2027 2028

Utilities Expense 549,477.24 591,237.51 636,171.56 684,520.59 736,544.16
Depreciation Expense 327,212.30 327,212.30 327,212.30 327,212.30 327,212.30
Real Property Tax Expense 17,110.80 18,411.22 19,810.47 21,316.07 22,936.09
Insurance Expense 796.80 796.80 796.80 796.80 796.80
Repairs and Maintenance 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
13th Month Pay for Direct Labor 62,000.00 62,000.00 62,000.00 62,000.00 62,000.00
Total Factory Overhead 971,597.14 1,014,657.83 1,060,991.13 1,110,845.76 1,164,489.35
Schedule 3: Detailed Depreciation
Schedule 3.1 Machinery and Equipment-Factory
Quan Usefu
Cost tity l Life 2024 2025 2026 2027 2028 Total Cost
Automatic Paper Bag
Making Machine 2,340,040.00 1 10 234,004.00 234,004.00 234,004.00 234,004.0 234,004.00 2,340,040.00
Shredder 13,800.00 2 5 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00 27,600.00
Generator 162,700.00 1 10 16,270.00 16,270.00 16,270.00 16,270.00 16,270.00 162,700.00
Cooking Kettle 30,275.00 2 20 3,027.50 3,027.50 3,027.50 3,027.50 3,027.50 60,550.00
Drum Dryer Machine 120,927.00 4 10 48,370.80 48,370.80 48,370.80 48,370.80 48,370.80 483,708.00
Building(40%) 20,020.00 20,020.00 20,020.00 20,020.00 20,020.00
66
Total Depreciation
Expense-Factory 327,212.30 327,212.30 327,212.30 327,212.3 327,212.30 3,074,598.00
Schedule 3.2 Machinery and Equipment-Office
Cost Useful Life 2024 2025 2026 2027 2028

PC with Monitor 92,000.00 5 18,400.00 18,400.00 18,400.00 18,400.00 18,400.00
CCTV 6,000.00 5 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Printer 8,800.00 5 1,760.00 1,760.00 1,760.00 1,760.00 1,760.00
Water Dispenser 8,000.00 5 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00
Fire Extinguisher 6,000.00 5 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Fire Alarm 2,250.00 10 225.00 225.00 225.00 225.00 225.00
Aircon 21,420.00 10 2,142.00 2,142.00 2,142.00 2,142.00 2,142.00
Total Depreciation Expense- Ofice 26,527.00 26,527.00 26,527.00 26,527.00 26,527.00
Schedule 3.3 Furnitures and Fixtures
67
Cost Useful Life 2024 2025 2026 2027 2028
Desk 5,500.00 10 550.00 550.00 550.00 550.00 550.00
Chairs 2,100.00 10 210.00 210.00 210.00 210.00 210.00
Filling Cabinet 25,000.00 10 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00
Computer Table 3,000.00 12 250.00 250.00 250.00 250.00 250.00
Office Table 10,500.00 12 875.00 875.00 875.00 875.00 875.00
Total Depreciation Expense 46,100.00 4,385.00 4,385.00 4,385.00 4,385.00 4,385.00
Delivery Van 1,450,000.00 15 96,666.67 96,666.67 96,666.67 96,666.67 96,666.67

Building (60%) 1,501,500.00 30 30,030.00 30,030.00 30,030.00 30,030.00 30,030.00
Total Depreciation Expense- General 157,608.67 157,608.67 157,608.67 157,608.67 157,608.67
Total Depreciation Expense- Overall 484,820.97 484,820.97 484,820.97 484,820.97 484,820.97
Schedule 4: Contribution Table
Position No. of Workers Monthly Salary PhilHealth Contribution SSS Contribution Pag-Ibig Contribution
EE ER EE ER EE ER
Machine 3 14,000.00 1,890.00 1,890.00 1,890.00 3,990.00 1,260.00 1,260.00
Operators
Cashier 1 12,000.00 540.00 540.00 540.00 1,140.00 360.00 360.00
Driver 1 13,000.00 585.00 585.00 585.00 1,235.00 390.00 390.00
Delivery Man 1 10,000.00 450.00 450.00 450.00 950.00 300.00 300.00
Security Guard 1 13,000.00 585.00 585.00 585.00 1,235.00 390.00 390.00
Warehouse Men 2 10,000.00 900.00 900.00 900.00 1,900.00 600.00 600.00
Schedule 5: VAT Payable Computation
VAT Payable 2024 2025 2026 2027 2028

68
VAT Output 1,505,675.74 1,863,123.16 2,043,943.31 2,205,613.56 2,374,261.94
VAT Input 982,145.98 1,247,979.93 1,486,031.74 1,777,249.51 2,125,673.89
Total Vat Payable 523,529.76 615,143.23 557,911.57 428,364.05 248,588.05
Direct Materials 901,242.86 1,160,928.17 1,392,360.17 1,676,454.70 2,017,214.11
Utilities 74,675.24 80,350.56 86,457.20 93,027.95 100,098.07
Office Supplies 6,007.68 6,464.26 6,959.42 7,492.54 8,066.55
Cleaning Supplies 220.20 236.94 254.94 274.32 295.17
Total VAT Input 982,145.98 1,247,979.93 1,486,031.74 1,777,249.51 2,125,673.89
Schedule 6: Partner's Profit Distribution
2024
Account Titles Pabualan Saberon Zarriz Total
240,000.00 240,000.00 240,000.00 720,000.00

Salaries
1,095,287.48 1,095,287.48 1,095,287.48 3,285,862.43

Remainder
1,335,287.48 1,335,287.48 1,335,287.48 4,005,862.43

Share in Net Income
69
2025
Salaries 240,000.00 240,000.00 240,000.00 720,000.00
Remainder 1,570,674.96 1,570,674.96 1,570,674.96 4,712,024.88
Share in Net Income 1,810,674.96 1,810,674.96 1,810,674.96 5,432,024.88
2026
240,000.00 240,000.00 240,000.00 720,000.00
Salaries
2,029,906.64 2,029,906.64 2,029,906.64 6,089,719.93
Remainder
2,269,906.64 2,269,906.64 2,269,906.64 6,809,719.93
Share in Net Income
2027
240,000.00 240,000.00 240,000.00 720,000.00
Salaries
2,492,833.59 2,492,833.59 2,492,833.59 7,478,500.77
Remainder
2,732,833.59 2,732,833.59 2,732,833.59 8,198,500.77
Share in Net Income
70
2028
240,000.00 240,000.00 240,000.00 720,000.00
Salaries
2,985,906.28 2,985,906.28 2,985,906.28 8,957,718.84
Remainder
3,225,906.28 3,225,906.28 3,225,906.28 9,677,718.84
Share in Net Income
Schedule 7: Withdrawals
2024 2025 2026 2027 2028
4,005,862.43 5,432,024.88 6,809,719.93 8,198,500.77 9,677,718.84

Net Income
0.5 0.5 0.5 0.5 0.5
Percentage of Allowable Withdrawal
2,002,931.21 2,716,012.44 3,404,859.97 4,099,250.38 4,838,859.42

Total Withdrawals
Schedule 8: Utilities Consumption
Schedule 8.1 Machinery and Equipment- Factory
Quant Hours Days Price per

ity Consumption Used Used KW/hour Cost Annual Cost
Automatic Paper Bag Making
Machine 1 15 3 280 14.8377 186,955.02 166,924.13
71
Cooking Kettle 2 25 0.5 280 14.8377 103,863.90 92,735.63
Drum Dryer Machine 4 4 4 280 14.8377 265,891.58 237,403.20
Electricity Expense- Factory 556,710.50 497,062.95
Water Consumption Expense 4,892.00 52,414.29
Total Utilities Expense- Factory 561,602.50 549,477.24
Schedule 8.2 Machinery and Equipment – Office
Quantity Consumption Hours Used Days Used Price per KW/hour Cost Annual Cost
PC with Monitor
CCTV
2 0.1 8 280 14.8377 6,647.29 5,935.08
Printer
6 0.04 24 280 14.8377 23,930.24 21,366.29
Water Dispenser
1 0.175 8 280 14.8377 5,816.38 5,193.20
Aircon
2 0.08 8 280 14.8377 5,317.83 4,748.06
Electricity Expense- Offie
1 0.6 8 280 14.8377 19,941.87 17,805.24
Water Consumption Expense
Total Utilities Expense-
61,653.61 55,047.87
Office
72
Schedule 8.3 Water Consumption:
Monthly Consumption(per Rate per Total Monthly Annual Exclusive of

cu.m) cu.m Charge Cost VAT
Factory 100 48.92 4,892.00 58,704.00 52,414.29
Office 20 48.92 978.40 11,740.80 10,482.86
Total Water
Consumption 5,870.40 70,444.80 62,897.14
Schedule 9: Real Property Tax Computation
Schedule 9.1 Real Property Tax- Land
2024 2025 2026 2027 2028

Fair Market Value 1,050,000.00 1,129,800.00 1,215,664.80 1,308,055.32 1,407,467.53
Assessment Level 50% 50% 50% 50% 50%
Taxable Value 525,000.00 564,900.00 607,832.40 654,027.66 703,733.76
Basic Real Property Tax 10,500.00 11,298.00 12,156.65 13,080.55 14,074.68

Special Education Fund 5,250.00 5,649.00 6,078.32 6,540.28 7,037.34
Total Real Property Tax Expense -
Land 15,750.00 16,947.00 18,234.97 19,620.83 21,112.01
73
Schedule 9.2 Real Property Tax- Building
2024 2025 2026 2027 2028

Fair Market Value 1,501,500.00 1,615,614.00 1,738,400.66 1,870,519.11 2,012,678.57
Assessment Level 60% 60% 60% 60% 60%
Taxable Value 900,900.00 969,368.40 1,043,040.40 1,122,311.47 1,207,607.14
Basic Real Property Tax 18,018.00 19,387.37 20,860.81 22,446.23 24,152.14
Special Education Fund 9,009.00 9,693.68 10,430.40 11,223.11 12,076.07
Total Real Property Tax Expense -
Building 27,027.00 29,081.05 31,291.21 33,669.34 36,228.21
Real Property Tax Expense-Factory (40%) 2024 2025 2026 2027 2028
Real Property Tax- Land 6,300.00 6,778.80 7,293.99 7,848.33 8,444.81
23,703.21
Real Property Tax-related Building 10,810.80 11,632.421 20,473.061 22029.01321 8
Total Real Property Tax Expense 32,148.0

Factory(40%) 17,110.80 18,411.22 27,767.05 29,877.35 2
Real Property Tax Expense-Office(60%) 2024 2025 2026 2027 2028

Real Property Tax- Land 9,450.00 10,168.200 10,940.983 11,772.498 12,667.208
Real Property Tax-related Building 16,216.20 17,448.631 18,774.727 20,201.606 21,736.929
Total Real Property Tax Expense
Office(60%) 25,666.20 27,616.831 29,715.710 31,974.104 34,404.136
Schedule 10: Direct Materials

74
2024 2025 2026 2027 2028
Direct Materials, Beg. 1,736,428.57 3,661,428.57 6,024,188.57 8,857,978.33

Add: Purchases 5,571,428.57 5,760,000.00 6,197,760.00 6,668,789.76 7,175,617.78
Freight In 1,925,000.00 1,925,000.00 1,925,000.00 1,925,000.00 1,925,000.00
Total Direct Materials 7,496,428.57 9,421,428.57 11,784,188.57 14,617,978.33 17,958,596.11
Less: Direct Materials Used 5,760,000.00 5,760,000.00 5,760,000.00 5,760,000.00 5,760,000.00
Direct Materials, End. 1,736,428.57 3,661,428.57 6,024,188.57 8,857,978.33 12,198,596.11
Schedule 10.2: Sodium Hydroxide
2024 2025 2026 2027 2028

Direct Materials, Beg. 3,128.57 6,728.57 11,422.97 17,294.95
Add: Purchases 13,928.57 14,400.00 15,494.40 16,671.97 17,939.04
Total Direct Materials 13,928.57 17,528.57 22,222.97 28,094.95 35,233.99
Less: Direct Materials Used 10,800.00 10,800.00 10,800.00 10,800.00 10,800.00
Direct Materials, End. 3,128.57 6,728.57 11,422.97 17,294.95 24,433.99
Schedule 10.3 Total Direct Materials
75
2024 2025 2026 2027 2028
Direct Materials, Beg. - 1,739,557.14 3,668,157.14 6,035,611.54 8,875,273.28
Add: Purchases 5,585,357.14 5,774,400.00 6,213,254.40 6,685,461.73 7,193,556.83
Freight In 1,925,000.00 1,925,000.00 1,925,000.00 1,925,000.00 1,925,000.00
Total Direct Materials 7,510,357.14 9,438,957.14 11,806,411.54 14,646,073.28 17,993,830.10
Less: Direct Materials Used 5,770,800.00 5,770,800.00 5,770,800.00 5,770,800.00 5,770,800.00
Direct Materials, End. 1,739,557.14 3,668,157.14 6,035,611.54 8,875,273.28 12,223,030.10
Schedule 11. Finished Goods
Schedule 11.1. Small
2024 2025 2026 2027 2028

Finished Goods, Beg. - 1,944 2,236 2,279 2,286
Add: Finished Goods Produced 12,960 12,960 12,960 12,960 12,960
Total Finished Goods Available for Sale 12,960 14,904 15,196 15,239 15,246
Less:Finished Goods Sold 11,016 12,668 12,916 12,953 12,959
Finished Goods, End. 1,944 2,236 2,279 2,286 2,287
Multiply by Cost per Unit 114.28 122.96 132.31 142.36 153.18
Finished Goods, End. 222,157.93 274,898.22 301,577.69 325,431.65 350,315.21
Schedule 11.2 Medium
2024 2025 2026 2027 2028

76
Schedule 11.3 Large
2024 2025 2026 2027 2028

Schedule 11.4 Extra Large
2024 2025 2026 2027 2028

77
Schedule 11.5 Total Finished Goods, End
. 2024 2025 2026 2027 2028

Small 222,157.93 274,898.22 301,577.69 325,431.65 350,315.21
Medium 284,065.61 351,502.78 385,616.89 416,118.12 447,935.86
Large 370,736.36 458,749.17 503,271.77 543,079.17 584,604.77
Extra Large 506,933.25 627,279.20 688,158.01 742,589.40 799,370.20
Total Finished Goods, End. in Pesos 1,383,893.14 1,712,429.37 1,878,624.37 2,027,218.35 2,182,226.05
Financial Analysis
The Financial Analysis is the through assessment of the profitability, viability, and stability of the projected business. This
gives way to the analysis and understanding of the three major financial statements specifically the balance sheet, income statement,
and statement of cash flows. The three common analysis method are horizontal, vertical and ratio analysis of financial statements
Horizontal Analysis
Statement of Financial Performance
ASSETS Year 0 2024 Increase (Decrease) Percentage

78
Current Assets:
Cash 481,652.00 1,987,175.88 1,505,523.88 312.58%
Materials Inventory - 1,739,557.14 1,739,557.14 0.00%
Pre-Operating Expenses 151,680.00 - (151,680.00) -100.00%
Total Current Assets 633,332.00 3,726,733.02 3,093,401.02 488.43%
Noncurrent Assets:
Property, Plant and Equipment 7,266,668.00 6,781,847.03 (484,820.97) -6.67%
Total Noncurrent Assets 7,266,668.00 6,781,847.03 (484,820.97) -6.67%
TOTAL ASSETS 7,900,000.00 10,508,580.06 2,608,580.06 33.02%
LIABILITIES AND EQUITY

Trade and Other Payables - 605,648.84 605,648.84 0.00%
Total Current Liabilities - 605,648.84 605,648.84 0.00%
Partner's Equity 7,900,000.00 9,902,931.21 2,002,931.21 25.35%
TOTAL LIABILITIES AND EQUITY 7,900,000.00 10,508,580.06 2,608,580.06 33.02%
ASSETS 2024 2025 Increase (Decrease) Percentage

Current Assets:
Cash 1,987,175.88 3,371,447.81 1,384,271.93 69.66%
Materials Inventory 1,739,557.14 3,668,157.14 1,928,600.00 110.87%
Pre-Operating Expenses - - - 0.00%
Total Current Assets 3,726,733.02 7,039,604.95 3,312,871.93 88.89%
79
Noncurrent Assets:
Property, Plant and Equipment 6,781,847.03 6,297,026.07 - 484,820.97 -7.15%
Total Noncurrent Assets 6,781,847.03 6,297,026.07 - 484,820.97 -7.15%
TOTAL ASSETS 10,508,580.06 13,336,631.02 2,828,050.96 26.91%

Trade and Other Payables 605,648.84 717,687.36 112,038.52 18.50%
Total Current Liabilities 605,648.84 717,687.36 112,038.52 18.50%
Partner's Equity 9,902,931.21 - (9,902,931.21) -100.00%
TOTAL LIABILITIES AND EQUITY 10,508,580.06 13,336,631.02 2,828,050.96 26.91%
Account Titles 2025 2026 Increase (Decrease) Percentage

Gross Sales 15,526,026.32 17,032,860.93 1,506,834.61 9.71%
Less: Cost of Goods Sold 7,436,365.88 7,206,186.02 (230,179.86) -3.10%
Gross Income 8,089,660.44 9,826,674.91 1,737,014.47 21.47%
Less: Pre-Operating Expenses - - - 0.00%
Salaries Expenses 624,000.00 624,000.00 - 0.00%
Depreciation Expenses 157,608.67 157,608.67 - 0.00%
Office Supplies Expense 53,868.86 57,962.90 4,094.03 7.60%
80
Cleaning Supplies Expense 1,974.46 2,124.52 150.06 7.60%
Utilites Expense 70,511.06 75,869.90 5,358.84 7.60%
SSS Premium Expense 125,400.00 125,400.00 - 0.00%
PhilHealth Contribution Expense 59,400.00 59,400.00 - 0.00%
Pag-Ibig Contribution Expense 39,600.00 39,600.00 - 0.00%
Transportation Expense 14,048.26 15,115.92 1,067.67 7.60%
Advertising Expense 27,976.00 30,102.18 2,126.18 7.60%
Business Permits and Licenses 91,430.00 91,430.00 - 0.00%
Repairs and Maintenance 5,000.00 5,000.00 - 0.00%
Insurance Expense 1,195.20 1,195.20 - 0.00%
Real Property Tax 27,616.83 29,715.71 2,098.88 7.60%
Total Expenses 1,299,629.34 1,314,524.99 14,895.66 1.15%
Net Income Before Tax 6,790,031.10 8,512,149.91 1,722,118.81 25.36%
Less: Income Tax Expense 1,358,006.22 1,702,429.98 344,423.76 25.36%
Net Income After Tax 5,432,024.88 6,809,719.93 1,377,695.05 25.36%
2027 2028 Increase (Decrease) Percentage

Gross Sales 18,380,113.01 19,785,516.21 1,405,403.19 7.65%
Gross Income 11,578,678.68 13,444,947.10 1,866,268.42 16.12%
81
Total Expenses 1,330,552.72 1,347,798.55 17,245.83 1.30%

Gross Sales 12,547,297.82 15,526,026.32 2,978,728.50 23.74%
82
Less: Cost of Goods Sold 6,102,503.99 7,436,365.88 1,333,861.89 21.86%
Gross Income 6,444,793.82 8,089,660.44 1,644,866.62 25.52%
Less: Pre-Operating Expenses 151,680.00 - (151,680.00) -100.00%
Transportation Expense 13,056.00 14,048.26 992.26 7.60%
Total Expenses 1,437,465.79 1,299,629.34 (137,836.45) -9.59%

83
Gross Sales 15,526,026.32 17,032,860.93 1,506,834.61 9.71%
Gross Income 8,089,660.44 9,826,674.91 1,737,014.47 21.47%
Total Expenses 1,299,629.34 1,314,524.99 14,895.66 1.15%
84
Gross Sales 17,032,860.93 18,380,113.01 1,347,252.09 7.91%
Gross Income 9,826,674.91 11,578,678.68 1,752,003.77 17.83%
85
Total Expenses 1,314,524.99 1,330,552.72 16,027.73 1.22%

Gross Sales 18,380,113.01 19,785,516.21 1,405,403.19 7.65%
Gross Income 11,578,678.68 13,444,947.10 1,866,268.42 16.12%
86
Total Expenses 1,330,552.72 1,347,798.55 17,245.83 1.30%
Vertical Analysis
ASSETS 2024 % 2025 % 2026

Current Assets:
Cash 1,987,175.88 53.32% 3,371,447.81 25.28% 4,965,472.37
Materials Inventory 1,739,557.14 16.55% 3,668,157.14 27.50% 6,035,611.54
Pre-Operating Expenses - 0.00% - 0.00% -
Total Current Assets 3,726,733.02 35.46% 7,039,604.95 52.78% 11,001,083.91
Noncurrent Assets:
87
Property, Plant and Equipment 6,781,847.03 64.54% 6,297,026.07 47.22% 5,812,205.10
Total Noncurrent Assets 6,781,847.03 64.54% 6,297,026.07 47.22% 5,812,205.10
TOTAL ASSETS 10,508,580.06 100.00% 13,336,631.02 100.00% 16,813,289.01

Trade and Other Payables 605,648.84 5.76% 717,687.36 5.38% 789,485.39
Total Current Liabilities 605,648.84 5.76% 717,687.36 5.38% 789,485.39
Partner's Equity - 0.00% - 0.00% -
TOTAL LIABILITIES AND EQUITY 10,508,580.06 100.00% 13,336,631.02 100.00% 16,813,289.01
% 2027 % 2028 %
ASSETS
Current Assets:
29.53% 6,764,293.91 32.26% 8,787,724.59 33.99%
Cash
35.90% 8,875,273.28 42.33% 12,223,030.10 47.28%
Materials Inventory
0.00% - 0.00% - 0.00%
Pre-Operating Expenses
65.43% 15,639,567.18 74.59% 21,010,754.70 81.27%
Total Current Assets
Noncurrent Assets:
34.57% 5,327,384.13 25.41% 4,842,563.17 18.73%
Property, Plant and Equipment
34.57% 5,327,384.13 25.41% 4,842,563.17 18.73%
Total Noncurrent Assets
100.00% 20,966,951.32 100.00% 25,853,317.86 100.00%
TOTAL ASSETS

Trade and Other Payables 4.70% 843,897.31 4.02% 891,404.44 3.45%
88
4.70% 843,897.31 4.02% 891,404.44 3.45%
Total Current Liabilities
0.00% - 0.00% - 0.00%
Partner's Equity
100.00% 20,966,951.32 100.00% 25,853,317.86 100.00%
TOTAL LIABILITIES AND EQUITY
In analyzing the balance sheet vertically, all of the line items are converted into percentages with reference to the total assets.
Based on the date, it ca be inferred that the projected business is in good financial condition because of the increasing total assets and
partner’s equity.
Account Titles 2024 % 2025 %

Gross Sales 12,547,297.82 100.00% 15,526,026.32 100.00%
Less: Cost of Goods Sold 6,102,503.99 48.64% 7,436,365.88 47.90%
Gross Income 6,444,793.82 51.36% 8,089,660.44 52.10%
Less: Pre-Operating Expenses 151,680.00 1.21% - 0.00%
Salaries Expenses 624,000.00 4.97% 624,000.00 4.02%
Depreciation Expenses 157,608.67 1.26% 157,608.67 1.02%
Office Supplies Expense 50,064.00 0.40% 53,868.86 0.35%
Cleaning Supplies Expense 1,835.00 0.01% 1,974.46 0.01%
Utilites Expense 65,530.72 0.52% 70,511.06 0.45%
SSS Premium Expense 125,400.00 1.00% 125,400.00 0.81%
PhilHealth Contribution Expense 59,400.00 0.47% 59,400.00 0.38%
Pag-Ibig Contribution Expense 39,600.00 0.32% 39,600.00 0.26%
Transportation Expense 13,056.00 0.10% 14,048.26 0.09%
Advertising Expense 26,000.00 0.21% 27,976.00 0.18%
Business Permits and Licenses 91,430.00 0.73% 91,430.00 0.59%
89
Repairs and Maintenance 5,000.00 0.04% 5,000.00 0.03%
Insurance Expense 1,195.20 0.01% 1,195.20 0.01%
Real Property Tax 25,666.20 0.20% 27,616.83 0.18%
Total Expenses 1,437,465.79 11.46% 1,299,629.34 8.37%
Net Income Before Tax 5,007,328.03 39.91% 6,790,031.10 43.73%
Less: Income Tax Expense 1,001,465.61 7.98% 1,358,006.22 8.75%
Net Income After Tax 4,005,862.43 31.93% 5,432,024.88 34.99%
2027 % 2028 %
Account Titles
18,380,113.01 100.00% 19,785,516.21 100.00%
Gross Sales
6,801,434.34 37.00% 6,340,569.10 32.05%
Less: Cost of Goods Sold
11,578,678.68 63.00% 13,444,947.10 67.95%
Gross Income
- 0.00% - 0.00%
Less: Pre-Operating Expenses
624,000.00 3.39% 624,000.00 3.15%
Salaries Expenses
157,608.67 0.86% 157,608.67 0.80%
Depreciation Expenses
62,368.08 0.34% 67,108.05 0.34%
Office Supplies Expense
2,285.98 0.01% 2,459.72 0.01%
Cleaning Supplies Expense
81,636.01 0.44% 87,840.35 0.44%
Utilites Expense
125,400.00 0.68% 125,400.00 0.63%
SSS Premium Expense
59,400.00 0.32% 59,400.00 0.30%
PhilHealth Contribution Expense
39,600.00 0.22% 39,600.00 0.20%
Pag-Ibig Contribution Expense
16,264.73 0.09% 17,500.85 0.09%
Transportation Expense
32,389.94 0.18% 34,851.58 0.18%
Advertising Expense
Business Permits and Licenses 91,430.00 0.50% 91,430.00 0.46%
90
5,000.00 0.03% 5,000.00 0.03%
Repairs and Maintenance
1,195.20 0.01% 1,195.20 0.01%
Insurance Expense
31,974.10 0.17% 34,404.14 0.17%
Real Property Tax
1,330,552.72 7.24% 1,347,798.55 6.81%
Total Expenses
10,248,125.96 55.76% 12,097,148.55 61.14%
Net Income Before Tax
2,049,625.19 11.15% 2,419,429.71 12.23%
Less: Income Tax Expense
8,198,500.77 44.61% 9,677,718.84 48.91%
Net Income After Tax
In analyzing the income statement vertically, all of the line items are converted into percentages with reference to the annual
sales. In relation to sales as the one hundred percent concluded that the business is feasible because the percentage of cost of goods is
decreasing as the years goes by that results to an increasing net income tax. This is due to the fact even though the cost of goods sold
increases per year because of inflation rate, the sales also increase along with it because the number of finished goods available for
each year increases because of the finished goods from the previous years and the constant finished goods produced for the current
year. With that, it can be inferred that Baneco Manufacturing has an efficient and good financial performance.
Financial Ratios
91
2024 2025 2026
Return on Sales = Net Income After Tax 4,005,862.43 5,432,024.88 6,809,719.93
Net Sales 12,547,297.82 15,526,026.32 17,032,860.93
= 31.93% 34.99% 39.98%
Return on Sales is a measure of the efficiency and profitability of the business in generating profits. For every one peso earned from
the sale of Baneco, it generates 31.93% profit for year 2024, 31.99% for the year 2025, 39.98% for 2026, 44.61% for the year 2027
and 48.91% for the year 2028. Evidently, the return on sales is increasing for the next five years and it indicates that the business is
growing efficiently.
2024 2025 2026 2027 2028

Net Profit After Tax 4,005,862.43 5,432,024.88 6,809,719.93 8,198,500.77 9,677,718.84
Original Investment 7,900,000.00 7,900,000.00 7,900,000.00 7,900,000.00 7,900,000.00
50.71% 68.76% 86.20% 103.78% 122.50%
Return on Investment shows the relationship between income and investment in assets to generate such income. It shows that the
management manages to produce returns to owners for every peso of net sales as the sales continue to increase, the profit percentage
increases. For every peso of investment, it earns 50.71% in the net income for 2024, 68.76% for year 2025, 86.20% for the year 2026,
103.78% for the year 2027 and 122.50% for the year 2028.
92
2024 2025 2026 2027 2028
Net Working
Capital = Current Asset 3,726,733.02 7,039,604.95 11,001,083.91 15,639,567.18 21,010,754.70
Less: Current Liability 605,648.84 717,687.36 789,485.39 843,897.31 891,404.44
= 3,121,084.18 6,321,917.59 10,211,598.52 14,795,669.87 20,119,350.26
93

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CHAPTER I

Name of the business

Description of the Industry

Description of the Project

BANECO is a sustainable eco-bag. It is an eco-bag made of banana stem fiber. The

Summary of Findings and Conclusions

● Socio – Economic Feasibility

Source: Pagadian City Registry and Licensing Division

Past Demand Pattern

Small Medium Large Exra Large

Figure 2.1: Historical Demand Pattern

Small Medium Large Extra Large

Figure 2.2: Projected Demand

Evaluation of Projected Demand

The historical supply gathered by the proponents cannot be determined due to

Competitors Small Medium Large Extra Large

Small Medium Large Extra Large

Figure 2.3: Projected Supply for the Next Five Years

the available market for the next 5 years:

2024 2025 2026

Sm Medi Lar Extra Sm Medi Lar Extra Sm Medi Lar Extra

Figure 2.4: Market Share

C. Marketing Strategies and Programs

Bagnana is an eco- friendly manufacturing business that aims to mass produce

Sizes Length Width Height Capacity

Small 8.5 inches 5 inches 12 inches 6 lb

Medium 11 inches 6 inches 13 inches 11 lb

Large 13 inches 7 inches 16.5 inches 17 lb

Extra Large 16 inches 8 inches 18 inches 22 lb

Table 2.8: Measurement of each sizes of eco-bags

Total Manufacturing Costs Cost Small Medium Large Extra Large

Smalll 204.79 220.35 237.10 255.12 274.51

Medium 261.85 281.76 303.17 326.21 351.00

Large 341.75 367.72 395.67 425.74 458.10

Extra Large 467.30 502.81 541.02 582.14 626.39

Promotion and Advertising Strategy

2024 2025 2026 2027 2028

KULANG ADVERTISING COST AND ADDITIONAL WORDINGS FOR TARPAULINS

1. Company Retailer Consumer

Company will directly sell the product to the consumers.

Conclusion on Market Study

Bulsita is a paper bag and not literally an eco-bag

1. Shredding Shred the banana pseudo stem into

2. Boiling Place it in a pot of boiling water. Add

3. Strain Strain the boiled banana pseudo stem

4. Transfer Transfer the strained banana pseudo

5. Paper bag making Transfer the paper rolls to the paper

Shredder 1000 kg/hr

Paper bag making machine 100 pcs/minute

Machine Pieces Capacity Computati Daily Weekly Monthly Yearly

In pcs. Daily Weekly Monthly Yearly In Bundles

Small 4,500 27,000 108,000 1,296,000 12,960

Medium 4,500 27,000 108,000 1,296,000 12,960

Large 4,500 27,000 108,000 1,296,000 12,960

Extra Large 4,500 27,000 108,000 1,296,000 12,960

Table 3.2 Machine Capacity

PURCHASING VOLUME COST COST Exclusive of VAT

Zamboanga 4,800 ₱50.00 ₱240,000 ₱480,000 ₱5,760,000

PURCHASING VOLUME COST COST Exclusive of VAT

Banana BI-WEEKLY Zamboanga 4,800 ₱57.89 ₱277,872 ₱555,744 ₱6,668,92

PURCHASING VOLUME COST COST Exclusive of

Table 3.3 Purchasing Schedule

Preparation 7:00 AM 30 minutes 7:30 AM

Raw materials 7:30 AM 30 minutes 8:00 AM