NUEVO ILOCO NATIONAL HIGH SCHOOL

MAWAB, COMPOSTELA VALLE

 Table of Contents

Page
Section I. Executive Summary………………………….…….1
Section II. Description of the Business…………………….3
Section III. Marketing Plan and Market Analysis……….…7
Section IV. Management / Organizational Plan…………..10
Section V. Operational Plan……………………….…………12
Section VI. Financial Plan………………………….…………15
Section VII. Appendix……………………………….………...20
Section I. Executive Summary
Introduction
Stuff Chovron was our heritage food, it was pass down to my mother, and
now to me. It was my Grandmother famous specialty, at that time they only cooked it
when there was an occasion, celebration or when they have a special guest. As a
family tradition my Mother still cooked the same way how my Grandmother made
Stuff Chovron, the same process and the same ingredients until my mother pass it
down to me.
I’ve decided to have my own business as our geographic location is just
nearby in a school, the students would be our target customer as children like
sweets or any food that has or related to chocolates. Our business plan to build a
strong market position in our town and hopefully in our country, it would be a big hit
cause Stuff Chovron aims to offer the best quality of products and services to meet
the demand and satisfaction of the middle-to-higher income area of the resident as
well as the students.
The Business
Stuff Chovron is incorporated in Davao City. It was owned by Mr. Jeffrey
Cruda Jr., and managed by his two siblings Loren Rose and Jiah.
Mr. Jeffrey Cruda Jr. graduated at the course of Bachelor in Business
Management as well as his younger sisters Loren Rose and Jiah as they want to
introduced their heritage food not just in their town but to the whole wide world.
The business intend to hire their relatives, friends to work as a part-time or
full-time polvoron makers to make and handle the customer service and day to day
operations.
Product and Services
The Business Stuff Chovron offers different flavours of polvoron with the
stuffing and chocolate coating. All are made freshly everyday to meet the high and
best quality of the product. Stuff Chovron will cater all customers by providing each
customer what kind of polvoron flavour they want to suit the customer satisfaction
and have their good feedback.
The Business provides different flavours o polvoron, from the classic polvoron
to our cookies and cream with its yummy stuffing and heavenly chocolaty taste from
its coating. During business operations, there would be 300 or more polvoron will be

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made to assure that there would be tasty snacks for the student, family and even by
the tourist.
The Market
The Business Stuff Chovron wants to establish a large regular customer base,
and will therefore concentrate its business and marketing on local residents, this will
establish a healthy, consistent revenue base to ensure the stability of the business.
We want to have a good and affordable price which would definitely be suitable to
our loyal customer. We want to meet the satisfactory of every customer and be
motivated to build and acquire the high visibility and standard of a business.
In addition, it would be a great profit for the business to introduce it for the
tourist, because every now and then foreigners or people from other countries keep
coming and visiting this country. The profit would be much more or less than 35%.
The product is expected to be high profitable one for it can be an all day snack or a
food souvenir to give for your loved ones.
Financial Considerations
Stuff Chovron expect to raise Php360, 000 of its own capital and to borrow a
Php50,000 guaranteed by the bank as a one year loan. The business anticipates
sales about Php1, 500,000 in the first year, and then it would be doubled in its
second year and hopefully around Php4, 000,000 on its third year plan.
The profit should be break-even after one month, that’s the time we recoup
the capital as it steadily increases the product sales. Profits for the time period us
expected to be good and does not have any cash flow problems.

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Section II. Description of the Business
A. Company Overview
1. LAMORCA
2. Davao City, the benefits that we would get from it would be a large number of
customers since the location of our business is place in a populated and known area.
The only limitations is how much we can control a large number of customer every
day since it was place into a populated area, the production of our product would not
be enough to our loyal customer, so we need to build a strong market position to
meet the demand of our loyal customer. The location of the business is well placed
and there are no zoning issues since we are surrounded by middle-to-higher income
level of residents. It includes duplexes, condominiums, trailer parks, and apartments.
3. The legal structure of the business is personally responsible for our company's
liabilities. The sole proprietorship business structure is a Legal and tax kind of
business structure. It will be formed when everything is in the right placed, where we
have enough money to have our own corporation, investors and partnership in our
business.
4. Our business is a type that sells sweet products containing chocolates and
delicious stuffing. The service of our product is to meet the demand of our loyal
customer and have their satisfaction towards our services. We are making the best
quality of product to satisfy every customer so that they would keep coming back.
We have retails through multiple channels of distribution to earn a profit. We sell
wide range of merchandise to the general public in a for-profit environment. We sell
our products and services directly to customers. The manufacturing of our product
has the components of raw materials that we need to make our product. These
finished products can be sold directly to consumers. The construction of the
business could have some machines or equipment so that we could a large number
of products every day. In our business plan we have outline the assets that could
make new construction of the company.
5. The business have great number in size and sales, since we have a huge number
of production of Stuff Chovron, we could reach millions of profit after a year. We
would need a great number of employees, maybe around 80 employees that would
handle the production and the customer service. The square footage of facilities
would be used for the warehouse that is less than 10,000 square feet. Those

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numbers have changed greatly for only 37% of warehouses are less than 25,000
square feet and an equal amount are greater than 100,000 square feet. The
remaining 27% of warehouses vary between 25,000 and 50,000 square feet, on
average.
6. Since our product is a heritage food, people can acquire and taste the new kind of
twist of polvoron. In our place Stuff Chovron was our signature dish, our place is
known for making delicious polvoron, one of the delicious makers of polvoron was
my Grandmother. When she passed away, she passed down the cooking technique
of polvoron from my mother, and then my mother passes it to me, as our family
tradition. Now that I’ve finish my studies, I’ve think that it is time to introduced our
heritage food to the whole wide world, and by that the business Stuff Chovron was
created.
7. The mission is to bring joy to our loyal customer when they tasted our product.
Achieving it is the only reason why we have created this business. People need
some happiness and joyful moment in their life that is why we made Stuff Chovron to
bring people together and it could bring the sweetness that was gone by tasting our
product.
8. Our vision is to see the rich culture, thoughtfulness and generosity of our beloved
loyal customer. By that we can create the best quality of product every day and we
can make people satisfied and happy. Comforting our loyal customer keep us
motivated to do well and giving them a good services of our product and employees.
9. Our loyal customer is the most important of all, without them the business would
not have any profit. We are comforting them and making sure that the customer is
always right. The employees should have a good attitude towards the customer and
for their co-workers and manager. They should do their responsibilities well and
doing their best to make some improvement of the business. The stakeholders that
have invested in our business, we have investors and partnership on the other
businesses. The value for our product is affordable and everyone can acquire it, the
important is we deliver quality over quantity that would satisfy our loyal customer.
B. Nature of the Business
1. The product that we want to sell is the new twist of polvoron named Stuff Chovron.
We are selling the new kind of twist of polvoron that will satisfy every customer when
they taste our very own product. The services that we want to deliver to our loyal

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customer is the best quality that no one could ever had, we will meet the demand of
our beloved customer so that they be satisfied every now and then.
2. The customer need this kind of product to please their very own selves, we have
put delicious ingredients that could make customer buy some more. The problem
would be the production of the product and the shortage of material needed to
produce a product, but if we can surpass or overcome it, it will be an opportunity for
the business to create and make some improvement. After we accomplish it will not
just benefit the business but also it will benefit the buyer, for they have bought the
best quality of product they could ever have.
3. Our business is located in Davao City, our target audience would be the students,
tourist and middle-to-higher income level of people. Since our business is located in
a city, we would have branches in shopping malls, schools and airport lines that
would make our target market area. Our business has the potential to go beyond
from the all those limitations, we have a great profitable business that could build a
strong market position for the company.
4. The alternatives would be chocolate lollipop, candy or anything sweets. Since our
business sells chocolate coated polvoron then our alternative products would be
sweets as well. The services of our product would just as same as the way we
service our Stuff Chovron to our loyal customer so there would be no alternatives on
it. Our competitive advantage to our competitors is that gaining a lot of profit and
having many loyal customers, we are giving affordable and acquirable low prices that
will make greater benefits and service to our business than to our competitors.
C. Key Characteristics of the Industry
1. The size of the industry with our business is big enough to create other
businesses and have some many branches across the world. Still, we would like to
create and managed other business that is still related to our first business which is
Stuff Chovron that is sweet, delicious and most of all affordable. Like some pastry
business that would sell cakes, cupcakes, chocolates, lollipops or candies. We will
introduce it together with my two sisters Loren Rose and Jiah in our place and also
to the whole wide world and pass our business to our future children as a family
tradition so that the business will keep on running. Sweet products are trends right
now, especially in Christmas and Valentine’s Day, it will be giving gift to their special
loved ones .This business totally fit in the industry because it builds a strong market
position that could make the industry bigger and wealthy and the critical issues are

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organization's agenda that are directly connected to its success. We have creative
an attractive advertising campaign that is a critical issue, as well as the elimination
of budget deficits.
D. Brief Financial Highlights
1. We are expecting that our sales would be bigger every month that is why we are
forecasting to see if there some changes happening around the business or not, we
are raising enough money from our capital so that by the end of the month we can
recoup the capital that we have invested. The funds is really needed to create
opportunities for the business and employees, we need to earn at least Php200,000
profit to pay the salaries of the employees and the taxes of the business. We can
recoup the capital for at least one or two months that’s the time we will pay back the
money that we get from the capital.
E. Strategic Management
1. The strengths in our business is the excellent customer service, the leadership in
product innovation, our personal relationship with the customer, the large market
share and the good attitude of our employees. On the other hand, the weakness in
our business is the lack or limiting our company's ability to reach its full potential.

2. Short-term goals are the steps necessary to achieve the longer-term goals.
Our short-term goal is to increase our advertising budget each month for the next
three months while our long-term business goal is to achieve double business
revenue by the end of the fiscal year.
3. The key measurable inputs and activities that drive the operational and financial
results of a business are salespeople, number of stores, website traffic, number and
price of products sold, units of production, etc. The number of clients or project per
year in the business would be less than or more than 30. Total sales for a given
period divided by the number of customers or transactions for the same period we
would get average sales per client. Return on investment, or ROI, would be
expressed in a fiscal year in the business. The quality, capacity and the cost of
lead/sale will be managed and we will work some improvement in any of it.
F. Compelling, Market – Driven Reason Why This Business Will Succeed
1. Come and try the new twist of our product the Stuff Chovron, you will not only just
like it you will go crazy for the chocolaty goodness of it cause in Stuff Chovron your
coated snack will have a twist, try our delicious stuffing’s and feel the heavenly taste.

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Section III. Marketing Plan and Market Analysis
A. Business, Industry, and Situation Overview
- The Stuff Chovron offers new kind of twist, from the ordinary polvoron to a classic
one. This business intends to build a strong market position with its best quality of
products to its services. With its affordable price, it can be suitable and acquirable to
all the people.
B. Target Market and Trade Area
-The Business Stuff Chovron would be place into a populated area where people can
acquire and afford the product, it would be place in Airport Lines, Malls, Food Court,
Schools, Urban areas and etc. Our target customer would be middle-to-higher level
of people, also students and people from other countries or foreigners as it would be
their souvenir.
C. Product / Services
-The Business offer new kind of twist in polvoron, the production of it would need
great number of people to make and serve Stuff Chovron and handle customer
service and day to day operations. The only problem is that the hiring of the people
who will handle and make polvoron everyday, if they have any experience making it
or do we have to implement a training session to teach people. If we can surpass
this problem it would be a big opportunity to the people to have jobs and it would be
a big help to the business to create and build a high visibility and standard kind of
business.
D. Competitive Advantage
- Our Competitive Advantages towards our competitors is the production making of
the product which would supply the intended amount of product that can be serve
directly to the customer as to meet their demand and satisfaction.
E. Marketing Strategies
- The overall marketing strategies of the Business stuff Chovron is making the best
quality of the product , if we would meet the high quality of it , it would reflect all the
good feedback to the business which would make it a better strategy to the other
competitors. Next, is the services of the staff which would accommodate the
customer well, with a good attitude and experience to handle them well and achieve
their satisfaction.

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F. Sales Forecast and Assumptions
- The business intend to generate more than 360,000 from its capital, we are
expecting to raise our profit every month until we can have a sufficient and stable
funds. In our everyday operations, the sales of stuff Chovron products should be
more than 15,000 in a week, it would be enough to recoup the capital after one
month. The revenue of the business will develop higher great amount that would
extend from the capital that we spent in building and have the business.
G. Measures of Success
-The factor s that we are measuring is the amount of people we need in making stuff
Chovron products, For instance, if it is December there would be a higher production
of products so we need a great amount or many stuff that can work and handle
everything. We are expecting hundreds of customer everyday to buy and from that
they can obtain or bought products from 20 to 45 boxes of Stuff Chovron. If all of that
will be followed the expansion of the business will be in great state, there will be
franchises of our business from other places and hopefully other countries. It would
take our product to have more than 60% rate after a year.
H. Milestones and Measures
1. Goals
a. After we generate more than Php360, 000 from our capital, we would have a great
amount of profit that would make and build other kinds of businesses. In addition, it
would have many franchises across countries and other places that would make the
business stable and standard kind of business with its high visibility.
b. By cooperating and working well with all the staff and work-mates in the business
area to achieve a greater high performance that could help to lift up the business and
to obtain the satisfactory of every customer.
c. As the year keep passing, we have generated and gather some data to improve
the business, by that the business could make some assumptions to help and make
the business more consistent to its revenue base to ensure its stability.
d. The performance we do in our business is making the best as we could, by doing
well to serve and making the best quality of our product and meeting their demand.
As years gone by our business can have greater progress, the business can have
some machines to make products faster and with that it could have some many
branches across worldwide and by that the business can assure a stable and a
success business ground with those achievements that we’ve achieved from the

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satisfaction of the customer. We need to identify every performance in the business
ground, gathering the data could make some improvement of the business, from the
position to its industry. By working together with all the staff , as the owner we can
create a better strong work-place, where in our day-to-day operations we can
achieve and measure all the things we need in our business.
2. Scenario Planning
a. The factors that will prompt us to continue our business is having and hearing the
good feedback from our customer, from that we are being motivated to do well and
have a better performance, we can make the best quality of products everyday as
one of our strategy as it would make our business much better than the other
competitors
3. After the Plan
a. After discussed the plan, the only thing that we need to do is to maintain of what
we have already done to make it improve and success.
b. After they bought some of our products, they are giving good comments and
feedback. They like the taste and flavour of it so they want to buy some more
chovron.

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Section IV. Management / Organizational Plan
A. Owners and Managers
- Mr. Jeffrey Cruda Jr. is the owner of the business and has experienced in handling
and managing it, he recently worked to a restaurant called the BRUNCH, his skill
level for being an owner of the Stuff Chovron is very well in business ground. He
managed and knows the things what to do and what not to do. The owner’s sister is
the manager, Loren Rose and Jiah, both have good attitude and has the skill of a
good manager, they managed and handle the business well.
B. Employees
- The employees we hire in the business is just part of the family, like our relatives
and also neighbour and friends. They have skills in making polvoron as it one of the
heritage foods in our town and they all know the procedures on how to make it. The
manager of the business is doing the hiring and the firing of employees, before our
staff or employees start their job we are implementing a training session to help them
become more capable and improve their skills on how to use machine for the
production of our product.
C. Consultants and Advisors
- Harold Kent Basa our Attorney who graduated at the course of Law, he is the one
who will manage all the papers and documents about the business. Our Accountant
is one of the managers of the business Stuff Chovron, it is Loen Rose who will
handle all especially the money. We have acquired in our business to have our
Insurance Agents, it’s because if there is something go wrong in the business they
would officially take care of it.
D. Organizational Structure / Communications
- From the owner of the business Stuff Chovron Mr. Jeffrey Cruda Jr., he is the one
who will facilitate and tell what are the things he need to add on the business and
give some of his appointment on to his manager which would manage the business
and handle all, including the works of the staff and employees to work well and make
the high quality product of the business
E. Individual and Organizational Development
- As the business owner of the Staff Chovron, I will make myself as a role model for
my employees and those who were under me, I will keep motivating them to do
better and have some improvement from there selves so that we can create a

10
harmonious and better output to our business I’ll prepare myself so that there would
be no bad or failure happenings around the business so that we can keep going and
moving for success.
F. Management Strategies
- As the owner I will make my employees get involved in the business ground by
giving them training and giving them enough salaries. As the owner of the business I
will delegate some of my responsibilities of the business to my trusted manager, who
will handle and make some all the things go well. The support and help that we need
in our business is to have a business partner to lessen some problems and struggles
in the work place. The business staff have the same organizational cultures where
the staff and employees were hired because of the same culture, some were friends,
relatives, and neighbours, were we live in the same place where our heritage food
originated and now it’s our product.

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Section V. Operational Plan
A. Location and Equipment
- The business is located in Davao City where its populated with people that can
acquire and afford the product. Since our product sell the new kind of twist of
polvoron, offering the best quality of it. The features of our business are mostly
sweets because it has chocolates, so it would be brown and white color
combinations. There are no any zoning issues in the location of our business, since it
was place to a vacant lot with a nice ground area and geographical location. Well,
the equipment that we need in our business are one who can make polvoron more
than 300 everyday and the ingredients such as flour, white sugar, chocolates butter
and the stuffing’s of it . We have currently owned property the business, a small
factory and warehouse, delivery truck, and a lot. After we recoup the capital we
would like to buy another lot so that we could build another business in there.
B. Hours Operations
- Our business opening time is exactly 7:00 am in the morning and the closing time is
8:00 pm in the evening every week. If there are holidays such as Christmas, we are
opening our business 24 hours.
C. How do you Design, Source, Purchase, Produce, and Distribute?
- Well our product is based from a polvoron which is round and we’ve coated it with
chocolate for a new kind of twist. Source of its ingredients are imported and came
from other countries so that we can assure that our product holds the best quality.
The production of our products will be at our factory. All the things that we need in
our business would be place in a warehouse which is next side to our factory. The
sales of every piece of it is just Php15.000 while per box is only Php150.000. Every
box contains 12 pieces of Stuff Chovron. We will distribute it to shopping malls,
schools, airport lines and to our branches across the city. We will meet the demand
of the customer, so we will give the best quality of our product to achieve their
satisfaction and good feedback.
D. Data Management
- By gathering some data each month, we can manage and we will have some
improvement of our business and product. We can put it to other countries or export
it to other countries, we will have some back-up so that we can process the data that
we have gathered. Our contacts with our future investors, writing and sending them

12
emails about the business, keeping all the important document and files to ensure
that it will be organized and according to the business plan.
E. Intellectual Property
- We will have our lawyer so that no one can copy or plagiarized our product so that
the reputation and name of the business will not be ruin. We will ensure the entire
document and files into a safe and we will have a copy for every piece of it to make
sure that it will not be misplaced and gone, if there would be missing pages in any
documents or files we will just have a soft copy of the original. Our property is the
treasure of the business so will have some agents to secure and manage the
properties.
F. Risk Management
- We can prevent and manage the risk that we will encounter by having some money
or saving some money from the bank and preventing the business from bankruptcy.
In our business we should be responsible in having decision in the business to
prevent the business from having many debts. The work-placed are equip with safety
measures to ensure the safeties of the people, we will have some security guard and
equipment such as CCTV to ensure that’s the business is guarded and well-secured.
Our business will have some customize equipment that can secure the company,
customer and the employees. We will have the sufficient supplies of ingredients to
prevent from getting out of supplies. We are implementing some procedures to
reduce and prevent some risk that will happen in the business. We will make an
improvement so that the business will not encounter loss of revenue and have some
growth and great improvement.
G. Insurance
- We have learned that we need to make equal agreements, about the insurance and
other important things that could help the business to be better and improved. The
regular payment of the business should be put well on a good hand that will handle
everything and ensuring that the company will not drown in debts that could lead to
bankruptcy.
H. Taxes
- Taxes that would apply to our business would be the BIR or Bureau of Internal
Revenue which is Income Taxes in our business that we must pay tax on the profit of
the company or the income of the business less deductible expenses. Next is
the Sales Tax on Products and Services Sold in Certain States which is required to

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collect sales tax and pay it to the state department of revenue. Specific products and
services are sales-tax eligible. Money must be collected and paid, and reports must
be completed on a regular basis. Last is Property Tax on Business Property, we own
the business and it is one of our property, our business must pay property tax to the
local taxing authority, which is usually the city or county where the property is
located.
I. Licences and Permits
- First is Purok Clearance, Barangay Clearance, Sedula, Police Clearance, and
Medical Certificate that proves that you don’t have any illness so that they would
allow you to have business like restaurants or any kind of business that is related in
handling food. After you pass all the requirements they will assist you, and question
you like what your business is or how much your sales.
J. Business Cycles
- Our business cycles should not face any problems from the day we start our
business and expected to have a good profit from the beginning and will continue to
the end as expected as cycle. The production delivery of our product will be
delivered by our delivery truck that will go places to places which would gives higher
profit from our sales of product.
K. Operational Strategies
- As our business is located in a populated area which is Davao City, the purchases
of our product will be dwindle quickly because of our loyal customer, our product
gives the best quality which make our customer keep coming back and the
production of our product would be doubled because of the demand of the customer
that we want to achieve that is why we need to upgrade our equipment so that the
production can process smoothly and make many products.

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Section VI. Financial Plan
A. Financial Assumptions
1. - The assumption that we made to arrive the financial projection is that we have
estimated all how much it would cost all things that we need in our business, the
ingredients, the materials and equipment that would be more than Php360, 000. For
us to recoup the capital, the pricing for our product would be Php15.000 for every
piece of polvoron and Php150.000 per box which contains 12 pieces.
2. - By the time we recoup the capital we are aiming above Php100,000 profit then
we will use it for business purposes we will be rolling the money so that we can
make some improvement and buy some machine to make the production of our
product faster and accurate. We will provide financial statements worksheets and we
well repaid the money with some of the profit, little by little until we recoup the
capital.
3. - Since our product is just Php15.000 every piece and Php150.000 per box, we
are expecting more than 100 customer every day, if we can sold 350 pieces of
polvoron worth of Php15.000 it would be Php157,500 by the end of the month. On
the other hand, if we can sold 45 boxes worth of Php150.000 it would be
Php202,500, so by the end of the month it we will be break-even.
4. - The needed funds will be obtain after we recoup the capital, so the funds will be
from the profit we obtain after by the end of the month. We can have sufficient funds
that will create opportunity for the business, we will used the funds for important
business purposes, it will be for acquiring new equipment, machines and tools, which
would be 20%, that is Php72,000 for all things and also for the loan for building that
will be finish in two and a half months.
B. Bookkeeping, Record – keeping, Accounting System and Process
1. - The ratio analysis is being analyzed and the information contained in a
company’s financial statements was gathered. The analysis is used in the business
to evaluate various aspects of a company’s operating and financial performance.
The liquidity in our company is the ability to pay off its short-term debts as they
come due using the company's current or quick assets. Our profitability ratio shows
how well a business can generate profits from its operations.
2. - The business have financed and save some its profit in the bank so that the
business will have some back-up money to avoid in getting the business in debts.

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Sources of finance for business are equity, debt, debentures, retained earnings, term
loans, working capital loans, letter of credit, euro issue, venture funding and etc.
These sources of funds are used in different situations. They are classified based on
time period, ownership and control, and their source of generation.
3. - The factors will be the capacity of the business on how much it can hold supplies
and employees, how will we going to paid the salary of our staff, the capital that we
invest in the business, if it would going to be collateral by the agencies, the credit for
all the things. Our bills in the past, when will be going to paid it in the future, and
most of all we shouldn’t have encounter any cash flow problems but to have a stable
and have continually movement of money. The condition of the industry will be good,
it will provide a steady flow of making products, the market will just be the same as
the industry that would not encounter any problems and it will be hit and famous to
the market.
C. Financial Worksheets
1.

Expansion Cost
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2. LAMORCA COMPANY, STUFF CHOVRON

INTERNAL CASH FLOW PROJECTIONS
AUGUST TO DECEMBER 2018
AUG SEP OCT NOV DEC
Operating cash P80,000 P100,000 P70,000 P80,000 P100,000
Source of cash:
Sales of Product 280,000 320,000 300,000 360,000 380,000

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Receivable collections 60,000 55,000 60,000 50,000 60,000
Others 45,000 40,000 50,000 40,000 55,000
Total: 385,000 415,000 410,000 450,000 495,000
Uses of Cash:
Salary of Employees 8,000 8,000 8,000 8,000 8,000
Owner’s Compensation 25,000 18,000 28,000 20,000 25,000
Taxes 50,000 50,000 50,000 50,000 50,000
Materials 15,000 15,000 15,000 15,000 15,000
Others 10,000 10,000 10,000 10,000 10,000
Total: 108,000 101,000 111,000 103,000 108,000
Excess (Deficit) of cash P277,000 P314,000 P299,000 P347,000 P387,000

LAMORCA COMPANY, STUFF CHOVRON

DOESN’T ENCOUNTER ANY CASH FLOW PROVLEMS

3. Financial Statement of Stuff Chovron

Dated October 09, 2018

Sales 1,200,000
Cost of sales 150,000 1,050,000
Gross Profit: 1,050,000
Operating Expenses:
Depreciation 120,000
Salaries & Wages 110,000
Supplies 200,000
Taxes 50,000
Utilities 180,000
Rental 40,000 700,000
Net Income: 350,000

1,050,000 350,000
Gross Profit Margin: =87 % Net Profit Margin: =29 %
1,200,000 1,200,000

17
 Stuff Chovron’s
Balance Sheet
Current Assets:
Cash on Hand 50,000
Cash on Bank 450,000
Accounts Receivable 200,000
Merchandise Inventory 120,000 820,000

Non-current Assets:
Office Equipment 200,000 200,000
Total Assets: 1,020,000

Current Liabilities:
Accounts Payable 165,000
Notes Payable 145,000 310,000

Owner’s Equity
Stuff Chovron’s Capital 360,000
Net Income 350,000 710,000
Total Liabilities & Owner’s Equity 1,020,000

4. PROFIT AND LOSS STATEMENT

(Capital is 360,000)
Income
Sales 1,200,000
Services 100,000
Other Income 50,000 1,350,000
Total Income: 1,350,000

Expenses:
Depreciation 120,000
Salaries & Wages 110,000
Supplies 200,000

18
Taxes 50,000
Utilities 180,000
Rental 40,000 700,000
650,000

The Stuff Chovron recoup the capital 360,000 and has a

profit of Php290,000

19
Section VII. Appendix

20