MARKETING ASPECT

The survey questionnaires will be sent randomly

distributed among the residents of Cebu
Province, Cebu City, Mandaue City, and Lapu-
Lapu City. The different number of households
serves as the quantity for solving the sample
size.
The Lucid Timber Mahogany Liquid Wax
identifies target market through geographic,
MAJOR demographic, and behavioral segmentation.
ASSUMPTIONS

Lucid Pinnacle Manufacturing Company would

be distributing and selling Lucid Timber Liquid
Wax to Large-Scale and Small-Medium Scale
Hardware Stores to Cebu Province, Cebu City,
Mandaue City, Lapu-Lapu City.
 The proponents considered the four major competitors
through survey results and observations of available
brands in hardware stores.
The basis for the computation of supply based on
interview of salesclerk at hardware stores are the
inventory in stock and estimated weekly sales at large-
scale hardware stores as its maximum level of supply
and inventory in stock and estimated weekly sales at
MAJOR small to medium-scale hardware enterprises as its
ASSUMPTIONS minimum level of supply.

The intended market share for Lucid Timber Liquid

Wax would be 3.81% of the overall market for wood
coating color enhancement products for its first year of
operation.
 PRODUCT DESCRIPTION
> Lucid Timber Mahogany Liquid Wax is made to be an alternative for
commercial color enhancement product for wood furniture and floorings.
This product is eco-friendly and is inexpensive compared to the other wood
color enhancement products we’ve known today.
> In addition, this solution is quite beneficial for anyone who wants to apply
color enhancement products on their wooden furniture and floorings with
minimum amount of time to make it dry.
 SAMPLE SIZE
The proponents use Yamane’s Sample Size Formula to determine the desired sample size to
distribute the survey. It is computed through the following formula:
Total Number of Respondents = 150
 PROFILE OF THE TARGET MARKET

The target markets considered by the proponents for Lucid Timber Mahogany Liquid Wax
are the following:
• Cebu City, Mandaue City, Lapu-Lapu City, and Cebu Province respondents.
• The total percentage of the number of respondents in the target market location who
meets the following criteria:
o Has wooden furniture or floorings,
o Applies wood color enhancement products to their wooden furniture or floorings.
o Buys wood color enhancement products.
o Willingness and Able to purchase our Lucid Timber Mahogany Liquid Wax.
SUMMARY
OF
QUESTION
RESULTS
SUMMARY
OF
QUESTION
RESULTS
SUMMARY
OF
QUESTION
RESULTS
SUMMARY
OF
QUESTION
RESULTS
DEMAND CALCULATION PROCESS

The number of households needed in the study is Cebu Province,

Cebu
City, Mandaue City, Lapu-Lapu City.
DEMAND CALCULATION PROCESS
The number of households was based on the Philippines Statistics Authority
(PSA) data and its Average Growth Rate (AGR) of the four areas: Cebu
Province, Cebu City, Mandaue City, Lapu-Lapu City are 2.63%, 1.21%,
1.73%, 2.94%.

Formula:
2016-2021 Number of Households = Present Number of Households * (1+AGR%)
PAST AND PROJECTED VALUES OF
DEMAND
 BASIS FOR SUPPLY COMPUTATION
• The following data were obtained through informal interviews from sales
agents of small-to-medium scale hardware enterprises and large-scale
hardware stores. To obtain the four major competitor’s respective
supplies, the interviewed personnel had given the proponents weekly
estimated supply.
Formula:
Annual Supply = Est. Weekly Sales x 52 Weeks
PAST AND PROJECTED VALUES OF
SUPPLY
DEMAND AND SUPPLY GAP
 The business would penetrate only 3.81% of the market as to have a lower
percentage compared to competitors as the business only has limited capital start-up
and still new to the market of wood coating or wood color enhancement products.
 MARKETING STRATEGY
LISTS OF ONLINE LISTS OF OFFLINE
ADVERTISEMENTS ADVERTISEMENTS Php 105,570.00
Facebook E-Billboard
ONLINE ADVERTISMENT
Instagram Radio Commercial Speech Ad EXPENSES
101.1 FM
Twitter Newspaper Classified Ads
(Freeman) Php 271,752.00
TikTok
YouTube OFFLINE ADVERTISMENT
EXPENSES
 PRICING SCHEME
YEAR PROJECTED
PRICE
COST PER LITER Php 74.88
2022 Php 109.00
MARK-UP 40%
2023 Php 112.60
PRICE WITH MARK-UP Php 104.83
2024 Php 116.54
RETAIL PRICE Php 109.00
2025 Php 120.97
2026 Php 125.33
TECHNICAL ASPECT
 Lucid Pinnacle Manufacturing
Company will start its operation in the
year 2022.
The company shall operate from
Monday to Sunday, from 8:00 am to
MAJOR 5:00 pm.
ASSUMPTIONS The supplier of the company’s
electricity will be the Visayan Electric
Company (VECO)
The supplier of the company’s water
will be Metropolitan Cebu Water
District (MCWD).
 The company shall deliver Lucid Timber
Mahogany Liquid Wax to selected large
scale hardware stores and small to
medium hardware enterprises all
throughout Cebu.
The direct material for water is included
MAJOR in the bill of materials but there shall be
ASSUMPTIONS no record for its inventory.

The conversion of USD to PHP is USD

1.00 is equal to Php 50.79 as of October
15, 2021.
 PRODUCT CHARACTERISTICS
• Lucid Timber Mahogany Liquid Wax is comprised of pure mahogany bark that has been
blended with chemicals to give it a shine when applied to furniture. Furthermore, this
product is extremely advantageous to all homes, workplaces, flats, and any other
establishment with furniture.
Features of the Product
1. Prevention of Rotting
2. Simplicity of Use
3. Composition
 ANNUAL USAGE BILL OF MATERIALS

ITEM QTY UNIT OF PRICE COST

MEASURE
Mahogany Bark 26,644 kg Php 20.00 532,880.00
Polyurethane 66,609 kg Php 96.00 6,511,897.87
Nitrocellulose
Lacquer
Metropolitan Water 199,287 Cu.Meters Php 30.50 212,740.75
(MCWD)
Metal Tin Can 1 L 266,436 pieces Php 17.00 4,646,303.87
Carton Boxes 11,102 pieces Php 15.00 166,530.00
TOTAL 12,070,352.49
 SINGLE UNIT USAGE RATE BILL OF
MATERIALS
ITEM QTY UNIT OF PRICE COST
MEASURE
Mahogany Bark 0.1 kg Php 20.00 Php 2.00
Polyurethane
Nitrocellulose 0.25 kg Php 96.00 Php 24.44
Lacquer
Metropolitan Water 0.75 L Php 30.50 Php 0.80
(MCWD)
Metal Tin Can 1 1 pieces Php 17.44 Php 17.44
Carton Boxes 0.04 pieces Php 15.63 Php 0.63
TOTAL Php 45.31
 DESIGN CAPACITY
PROCESS UNITS PER YIELD UPTIME WORKIN HEADCOUNT CAPACITY
HOUR G HOURS
PULVERIZING 300 100% 100% 1 1 3,000 L
BOILING 1,000 100% 100% 1 1 1,000 L
FILTERING 2,000 100% 100% 1 1 2,000 L
STORING 1,000 100% 100% 1 1 1,000 L
MIXTURE
STORING 1,000 100% 100% 1 1 1,000 L
CHEMICAL
MIXING 1,200 100% 100% 1 1 1,200 L
FILLING 1,000 100% 100% 1 1 1,000 L
PRINTING 2,250 100% 100% 0.5 1 1,125 L
DESIGN CAPACITY 1,000 L
 OPERATION TIME AND SUMMARY OF
WORKING DAYS
SUMMARY OF WORKING DAYS
OPERATION TIME
TOTAL NUMBER OF HOURS 9
TOTAL REGULAR 9 hrs PER DAY
BREAK TIME 1 hr TOTAL NUMBER OF SHIFTS 1
TOTAL 6.20 hrs PER DAY
OPERATING TOTAL AVERAGE NUMBER 7
HOURS PER DAY OF DAYS PER WEEK
ESTIMATED SET- 1.8 hr TOTAL AVERAGE NUMBER 30
UP TIME FOR OF DAYS PER MONTH
MACHINES
TOTAL AVERAGE NUMBER 360
OF DAYS PER YEAR
 EFFECTIVE CAPACITY

• DAILY PRODUCTION EFFECTIVE CAPACITY

= 𝑁𝑂. 𝑂𝐹 𝑈𝑁𝐼𝑇𝑆 𝑃𝐸𝑅 𝐶𝑌𝐶𝐿𝐸 𝑋 𝑁𝑂. 𝑂𝐹 𝐶𝑌𝐶𝐿𝐸𝑆 𝑃𝐸𝑅 𝐷𝐴𝑌
= 740 𝑢𝑛𝑖𝑡𝑠 𝑋 1 = 740 UNITS

• MONTHLY PRODUCTION EFFECTIVE CAPACITY

= DAILY PRODUCTION CAPACITY 𝑋 𝑁𝑂. 𝑂𝐹 WORKING DAYS PER MONTH
= 740 𝑢𝑛𝑖𝑡𝑠 𝑋 30 = 22,203 UNITS

• ANNUAL PRODUCTION EFFECTIVE CAPACITY

= MONTHLY PRODUCTION CAPACITY 𝑋12 MONTHS
= 22,203 𝑢𝑛𝑖𝑡𝑠 𝑋 12 = 266,436 UNITS
 ANNUAL CAPACITY PLANNING

YEAR 2022 2023 2024 2025 2026

DESIGN 360,000 360,000 360,000 360,000 360,000
CAPACITY

EFFECTIVE 266,436 275,574 285,585 292,800 299,315

CAPACITY

EFFICIENCY 74% 77% 79% 81% 83%

 SUMMARY OF ROP, EOQ, AND
SAFETY STOCK

MATERIALS UNIT OF EOQ ROP SAFETY STOCK

MEASURE
MAHOGANY BARK kg 2627 518 370
POLYURETHAHNE kg 2658 3145 1295
METAL TIN CAN pieces 7062 11100 3700
CARTON pieces 938 341 124
 NUMBER OF ORDERING POINT

MATERIALS UNIT OF EOQ ANNUAL NO. OF ORDERS

MEASURE DEMAND
MAHOGANY BARK kg 2627 26640 10
POLYURETHAHNE kg 2658 66600 25
METAL TIN CAN pieces 7062 266400 38
CARTON pieces 938 11160 12
 LENGTH OF ORDERING CYCLE

MATERIALS UNIT OF EOQ ANNUAL NO. OF LENGTH OF

MEASURE DEMAND WORK DAYS CYCLE DAYS

MAHOGANY BARK kg 2627 26640 360 36

POLYURETHAHNE kg 2658 66600 360 14
METAL TIN CAN pieces 7062 266400 360 10
CARTON pieces 938 11160 360 30
MANUFACTURING PROCESS
 QUALITATIVE FACTOR RATING OF THREE
LOCATIONS

CRITERIA ALTERNATIVES RESULTS

FACTORS CONSIDERED Weight (%) TALISAY MANDAUE CITY CEBU TALISAY MANDAUE CEBU CITY
CITY CITY CITY CITY
1. Convenient 25% 8 8 9 2 2 2.25
Transportation Facilities
2. Availability of Utilities 25% 8 8 8 2 2 2
3. Availability of Waste 15% 7 7 7 1.05 1.05 1.05
Disposal
4. Government Policies 10% 5 6 8 0.5 0.6 0.8
5. Security 25% 6 10 5 1.5 2.5 1.25
TOTAL 7.05 8.15 7.35
 QUANTITATIVE FACTOR RATING OF THREE LOCATIONS
CRITERIA ALTERNATIVES RESULTS
FACTORS Weight TALISAY MANDAUE CEBU CITY TALISAY MANDAUE CEBU CITY
CONSIDERED (%) CITY CITY CITY CITY

1.Transportation 15% 8 5 7 1.2 0.75 1.05

Costs
2. Utilities 15% 7 7 7 1.05 1.05 1.05
Consumption Rate
3. Warehouse 20% 9 8 8 1.8 1.6 1.6
Location Size
4. Warehouse 20% 10 8 5 2 1.6 1
Location Rate
5. Labor Rate 5% 8 8 8 0.4 0.4 0.4
6. Distance from 10% 8 5 7 0.8 0.5 0.7
Supplier
7. Distance to City 20% 3 10 7 0.6 2 1.4
Areas
TOTAL 7.85 7.9 7.2
CHOSEN WAREHOUSE LOCATION
MANUFACTURING LAYOUT 2D
MANUFACTURING LAYOUT
ISOMETRIC
PRODUCT SUPPLY CHAIN
 MANPOWER REQUIREMENTS FOR
DIRECT LABOR
SUMMARY
DEMAND PER DAY 740
STANDARD TIME PER 1.54
PRODUCT (IN MINS)
WORKING TIME PER 480
EMPLOYEE PER SHIFT (IN MINS
NO. OF SHIFTS PER DAY 1
EFFICIENCY (%) 74%
DIRECT LABOR NEEDED 4

  𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑝𝑒𝑟 𝑠ℎ𝑖𝑓t

MANAGEMENT ASPECT
 The Lucid Pinnacle Manufacturing Company has
an investment of Php 15,000,000.00.

The employees’ salary is based on their

performance and its estimated inflation rate of
MAJOR 3.7% in 2022, 3.3% in 2023, 3.5% in 2024, 3.8%
ASSUMPTIONS in 2025, and 3.6%in 2026. The following inflation
rate are calculated using moving average forecast.
The working days of Lucid Pinnacle
Manufacturing Company are from Monday to
Sunday with having its employee rotational day-
offs every week.
 All employees have an
estimated 312 working days
in a year.
There will be no increase in
MAJOR
ASSUMPTIONS the number of employees for
the next five (5) years.
The company would start its
operation in October 2022.
 COMPANY NAME
AND LOGO
• The rectangle shape in the logo
represents stability, equality, and
interconnectedness among other
rectangles.
• The color gray on the background of
each rectangle represents neutrality,
balance, and compromise.
• The company name “Lucid” means
bright or luminous while “Pinnacle”
means the most successful point.
 COMPANY MISSION
Lucid Pinnacle Manufacturing Company’s mission is to utilize the beauty of
the mahogany bark into enhancing it to different wooden furniture and
floorings. We aim to make as much as possible as a wood liquid wax producer.
Furthermore, to promote environmental awareness by producing mahogany
bark liquid wax to consumers that want to enhance their wooden furniture and
floorings.
To do our company mission, we must commit ourselves to the following:
 Utilizing the mahogany bark to make it useful in the current market.
 By providing quality product in enhancing color of wooden furniture and
floorings with innovation, creativity, and imagination.
 Offering unique design experience for color enhancement of wooden
furniture and floorings.
 • Lucid Pinnacle Manufacturing Company’s vision is
to be the leading wood color enhancing company in
COMPANY the Philippines by providing good quality and
affordable price while aiming for highest
VISION development over the years.
 Uniqueness. Being the producer of a product
that utilizes uniqueness in producing a
product.

Transcendence. Achieving next level

mentality to further improve our wood

CORE coloring enhancement product.

VALUES Quality. Delivering the right quality of

product to the customer that satisfies their
needs and exceeding their expectations.

Adaptability. Being able to adapt to changes

in market behavior by utilizing
communication mediums on what does the
customer needs.
 LIST OF INVESTORS

INVESTOR INVESTMENT
Matunog, Cristofer Nino C. Php. 2,000,000.00
Mercado, Jeffsymel Php. 2,000,000.00
Rodrigo, John Christian Php. 2,000,000.00
Camilotes, Zaira Php. 2,000,000.00
Embalzado, Christine Php. 2,000,000.00
Bernal, Milagros P. Php. 5,000,000.00
TOTAL Php. 15,000,000.00
ORGANIZATIONAL CHART
GANTT CHART
FINANCIAL ASPECT
 The business has an operating cycle of
12 months calendar year.

SSS, Phil-Health, and PAG-IBIG

contributions will be based on the
MAJOR monthly salaries of employees.
ASSUMPTIONS The employees will only receive 1/12
of the 13th month pay on the year 2022.

The prices of all materials, labor, and

overhead needed shall increase based
on the calculated forecast of inflation
rate.
 All pre-operating expenses will be used in the first
year of operations.

Upon computing the Estimated Project Cost, the

cost of operating expenses and direct materials is
good for three (3) months.
The form of business adopted by the company is
MAJOR “General Partnership”.
ASSUMPTIONS
The business has six partners with a Php
15,000,000 start-up capital.

The calculation for the annual taxable income of

the business is based o the Republic Act No.11534
also known as CREATE Law.
 PROJECT COST
PARTICULARS NOTES AMOUNT PARTICULARS NOTES AMOUNT
PRE-OPERATING EXPENSE
Feasibility Expense N1 ₱ 32, 000. Office Furniture and N5 ₱ 499, 356. 00
00 Fixture
Grand Opening N17 ₱ 14, 400.
00 Safety Equipment N7 ₱ 12, 302. 12

Permits and Licenses N20 ₱ 20, 034. and Signage's

00 Sanitary Equipment N8 ₱ 70, 839. 00
Training Cost N22 ₱ 30, 000.
00
Insurance Expense N28 ₱ 96, 000. TOTAL ₱ 7, 046, 610. 88

00
Intellectual Property Cost N29 ₱ 28, 032.
00
TOTAL ₱ 220, 466.00
ASSETS
Rent Expense ₱ 495, 000. 00
Leasehold Warehouse N3 ₱ 2, 227, 225. 00
Improvement
Pipe And Valve Systems ₱ 203, 177. 26
Machines N10 ₱ 1,305, 123. 50
Production Equipment N11 ₱ 1, 383, 588. 00
Delivery Truck N12
 PARTICULARS NOTES AMOUNT
ESTIMATED WORKING CAPITAL
Advertising Cost N21 ₱ 377, 322. 00
Office Supplies N6 ₱ 1, 657. 25
Shipping Cost if Machineries N26 ₱ 123, 765. 87
Shipping Cost Of Raw N27 ₱ 386, 253. 44
Materials (3 Month
Allocation)
Sanitary Materials N9 ₱ 7, 249. 94
PARTICULARS NOTES AMOUNT
Indirect Materials N14 ₱ 12, 760. 00
Waste Management Cost N23 ₱ 3, 088. 00
Direct Material Purchases N13 ₱ 3, 017, 588. 13
(3 Month Allocation)
Repairs and Maintenance N19 ₱ 61, 840. 29
Transportation Expense N24 ₱ 62, 434. 56
Total ₱ 5, 875, 711. 08
Grand Total ₱ 13, 142, 787. 96

Uniform and ID Expense N16 ₱ 11, 000. 00

Salaries Expense (3 Month N18 ₱ 1, 251, 957. 55

Allocation)
SSS Contribution (3 Month ₱ 259, 450. 50
Allocation)
Phil-Health Contribution (3 ₱ 125, 195. 76
Month Allocation)
Pag-ibig Contribution (3 ₱ 13, 800. 00
Month Allocation)
Utilities Expense (3 Month N15 ₱ 89, 251. 00
Allocation)
 LUCID PINNACLE MANUFACTURING COMPANY
PROJECTED INCOME STATEMENT FOR THE YEARS ENDED 2022-2026
2022 2023 2024 2025 2026
S/N
Sales S1 ₱ 5,735,700.99 ₱ 26,064,891.22 ₱ 28,955,406.03 ₱ 31,169,614.08 ₱ 33,761,834.06

Less: Cost of Goods S2 ₱ (1,945, 866.14) ₱ (8,906,729.68) ₱ (10,183,076.72) ₱ (10,233,403,04) ₱ (10,491,615.99)

Sold
Gross Income ₱ 3,789,834.85 ₱ 17,158,161.53 ₱ 18,772,329.31 ₱ 20,936,211.04 ₱ 23,270,218.06

Add: Other Income S23 ₱ 18,000.00 ₱ 74,376.00 ₱ 76,979.16 ₱ 79,904.37 ₱ 82,780.93

Operating Income ₱ 3,807,834,85 ₱ 17,232,537.53 ₱ 18,849,308.47 ₱ 21,016,115.41 ₱ 23,352,998.99

Less: Pre-Operating
Expense
Project Feasibility N1 ₱ (32,000.00) ₱ - ₱ - ₱ - ₱ -
Expense
Training Cost N22 ₱ (30,000.00) ₱ - ₱ - ₱ - ₱ -

Grand Opening Cost N17 ₱ (14,400.00) ₱ - ₱ - ₱ - ₱ -

Uniform & ID Expense N16 ₱ (11,000.00) ₱ - ₱ - ₱ - ₱ -

Intellectual Property N29 ₱ (28,032.00) ₱ - ₱ - ₱ - ₱ -

Right Costs
₱ (115,432.00) ₱ - ₱ - ₱ - ₱ -
 2022 2023 2024 2025 2026
S/N
Less: Selling and Operating
Expenses
Salaries Benefits Expenses S31 ₱ ₱ (1,005,378.33) ₱ (1,054,955.99) ₱ (1,092,635.54) ₱ (1,144,713.90)
(186,664.30)
Advertising Expenses S13 ₱ ₱ ₱ ₱ ₱
(377,322.00) (388,641.66) (402,244.12) (417,529.39) (432,560.45)
Depreciation Expenses S22 ₱ ₱ ₱ ₱ ₱
(154,382.89) (617,531.56) (617,531.56) (617,531.56) (617,531.56)
Freight Expenses N26 ₱ ₱ (1,595,999.21) ₱ (1,601,585.21) ₱ (1,662,445.45) ₱ (1,722,293.48)
(661,475.09)
Office Supplies Expense S16 ₱ ₱ ₱ ₱ ₱
(1,657.25) (6,847.76) (7,087.43) (7,356.75) (7,621.59)
Sanitary Materials Expense S15 ₱ ₱ ₱ ₱ ₱
(7,249.94) (29,956.75) (31,005.24) (32,183.44) (33,342.04)
Repairs and Maintenance S14 ₱ ₱ ₱ ₱ ₱
Expense (61,840.29) (255,524.05) (264,467.39) (274,517.15) (284,399.77)
Waste Management Expense S25 ₱ ₱ ₱ ₱ ₱
(3,088.00) (3,189.00) (3,301.55) (3,427.01) (3,550.38)
Transportation Expense S24 ₱ ₱ ₱ ₱ ₱
(62,434.56) (64,494.90) (66,752.22) (69,288.81) (71,783.20)
Permits and Licenses S11 ₱ ₱ ₱ ₱ ₱
(20,034.00) (12,038.58) (12,459.93) (12,933.41) (13,999.01)
 2022 2023 2024 2025 2026

Total Selling and Operating ₱ (1,632,148.32) ₱ (4,375,121.80) ₱ (4,470,753.84) ₱ (4,614,767.51) ₱ (4,772,011.47)

Expenses
Net Income Before Tax ₱ 2,060,254.53 ₱ 12,857,415.73 ₱ 14,378,554.63 ₱ 16,401,347.91 ₱ 18,580,987.52

Income Tax under CREATE ₱ (412,050.91) ₱ (3,375,353.93) ₱ (3,594,638.66) ₱ (4,100,336.98) ₱ (4,645,246.88)

LAW
Net Income after Tax ₱ 1,648,203.63 ₱ 9,643,061.80 ₱ 10,783,915.97 ₱ 12,301,010.93 ₱ 13,935,740.64
 LUCID PINNACLE MANUFACTURING COMPANY
PROJECTED COMMON-SIZE INCOME STATEMENT FOR THE YEARS ENDED 2022-2026
2022 2023 2024 2025 2026
S/N
Sales S1 100.00% 100.00% 100.00% 100.00% 100.00%
Less: Cost of Goods S2 33.93% 34.17% 35.17% 32.83% 31.08%
Sold
Gross Income 66.07% 65.83% 64.83% 67.17% 68.92%
Add: Other Income S23 0.31% 0.29% 0.27% 0.26% 0.25%
Operating Income 66.39% 66.11% 65.10% 67.43% 69.17%
Less: Pre-Operating
Expense
Project Feasibility Expense N1 0.56% 0.00% 0.00% 0.00% 0.00%
Training Cost N22 0.52% 0.00% 0.00% 0.00% 0.00%
Grand Opening Cost N17 0.25% 0.00% 0.00% 0.00% 0.00%
Uniform & ID Expense N16 0.49% 0.00% 0.00% 0.00% 0.00%
Intellectual Property Right N29 0.19% 0.00% 0.00% 0.00% 0.00%
Costs
2.01% 0.00% 0.00% 0.00% 0.00%
 LUCID PINNACLE MANUFACTURING COMPANY
PROJECTED COMMON-SIZE INCOME STATEMENT FOR THE YEARS ENDED 2022-2026
2022 2023 2024 2025 2026
S/N
Less: Selling and Operating
Expenses
Salaries Benefits Expenses S31 3.25% 3.86% 3.64% 3.51% 3.39%
Advertising Expenses S13 6.58% 1.49% 1.39% 1.34% 1.28%
Depreciation Expenses S22 2.69% 2.37% 2.13% 1.98% 1.83%
Freight Expenses N26 11.53% 6.12% 5.53% 5.33% 5.10%
Office Supplies Expense S16 0.03% 0.03% 0.02% 0.02% 0.02%
Sanitary Materials Expense S15 0.13% 0.11% 0.11% 0.10% 0.10%
Repairs and Maintenance S14 1.08% 0.98% 0.91% 0.88% 0.84%
Expense
Waste Management Expense S25 0.05% 0.01% 0.01% 0.01% 0.01%
Transportation Expense S24 1.09% 0.25% 0.23% 0.22% 0.21%
Permits and Licenses S11 0.35% 0.05% 0.04% 0.04% 0.04%
Insurance Expenses S12 1.67% 1.52% 1.41% 1.36% 1.30%
Total Selling and Operating 28.46% 16.79% 15.44% 14.81% 14.13%
Expenses
 2022 2023 2024 2025 2026

Total Selling and Operating 28.46% 16.79% 15.44% 14.81% 14.13%

Expenses
Net Income Before Tax 35.92% 49.33% 49.66% 52.62% 55.04%

Income Tax under CREATE 7.18% 12.33% 12.41% 13.15% 13.76%

LAW
Net Income after Tax 28.74% 37.00% 37.24% 39.46% 41.28%
 LUCID PINNACLE MANUFACTURING COMPANY
PROJECTED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED 2022-2026
PRE- 2022 2023 2024 2025 2026
OPERATIONS
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income ₱ 1,648,203.63 ₱ 9,643,061.80 ₱ 10,783,915.97 ₱ 12,301,010.93 ₱ 13,935,740.64
Adjustments to reconcile net
income to net cash provided by
operating activities

Depreciation of Fixed Assets ₱ - ₱ 154,382.89 ₱ 617,531.36 ₱ 617,531.36 ₱ 617,531.36 ₱ 617,531.36

(Increased) Decrease of Current Assets

Inventory ₱ - ₱ (984,842.86) ₱ (2,867,261.05) ₱ (1,273,306.82) ₱ (860,438.60) ₱ (276,325.28)

Increased (Decrease) of Current Liabilities

SSS Payable ₱ - ₱ 50,732.63 ₱ 1,172.37 ₱ 2,080.00 ₱ 1,495.00 ₱ 1,625.00

Phil-Health Payable ₱ - ₱ 16,692.76 ₱ 2,706.32 ₱ 2,909.86 ₱ 847.74 ₱ 3,232.68

Pag-ibig Contribution ₱ - ₱ 4,600.00 ₱ - ₱ - ₱ - ₱ -

Witholding Tax Payable ₱ - ₱ - ₱ 48,122.60 ₱ 52,459.91 ₱ 64,622.35 ₱ 73,876.12

Other Salaries Payable ₱ - ₱ 71,095.84 ₱ 168,627.28 ₱ 8,390.31 ₱ 9,428.31 ₱ 9,271.51

Utilities Payable ₱ - ₱ 46,864.86 ₱ 1,546.54 ₱ 1,694.40 ₱ 1,904.02 ₱ 1,872.35

VAT Payable ₱ - ₱ 325,104.68 ₱ 1,659,927.65 ₱ 1,947,550.46 ₱ 2,174,573.35 ₱ 2,450,610.39

 PRE- 2022 2023 2024 2025 2026
OPERATIONS

Income Tax Payable ₱ - ₱ 493,376.76 ₱ 3,469,282.61 ₱ 3,842,519.04 ₱ 4,359,228.31 ₱ 4,906,538.72

Net Cash Provided by ₱ - ₱ 1,826,211.19 ₱ 12,744,717.48 ₱ 15,985,744.49 ₱ 18,670,202.77 ₱ 21,723,973.49
Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant, ₱ (7,046,610.88) ₱ - ₱ - ₱ - ₱ - ₱ -
and Equipment

Payment for Security ₱ (495,000.00) ₱ - ₱ - ₱ - ₱ - ₱ -

Deposit

Net Cash Used in Investing ₱ (7,541,610.88) ₱ - ₱ - ₱ - ₱ - ₱ -

Activities

CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from ₱ 15,000,000.00
Partners

Cash withdrawn by
Partners ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00)

Net Cash Provided (Used) ₱ 15,000,000.00 ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00) ₱ (3,000,000.00)
by Financing Activities

Cash in bank, beginning ₱ 7,458,389.12 ₱ 6,284,600.31 ₱ 16,029,317.79 ₱ 29,015,062.28 ₱ 44,685,265.06

Cash in bank, ending ₱ 7,458,389.12 ₱ 6,284,600.31 ₱ 16,029,317.79 ₱ 29,015,062.28 ₱ 44,685,265.06 ₱ 63,409,238.55
 LUCID PINNACLE MANUFACTURING COMPANY
PROJECTED BALANCE SHEET AS OF THE YEARS ENDED 2022-2026
PRE- 2022 2023 2024 2025 2026
OPERATIONS
S/N
ASSETS
Current Assets
Cash In Bank ₱ 7,458,389.12 ₱ 6,284,600.13 ₱16,029,317.79 ₱29,015,062.28 ₱44,685,265.06 ₱63,409,238.55
Inventory ₱ - ₱ 984,842.86 ₱ 3,852,103.91 ₱ 5,125,410.73 ₱ 5,985,849.33 ₱ 6,262,174.61
Total Current Assets ₱ 7,458,389.12 ₱ 7,269,443.17 ₱19,881,421.70 ₱34,140,473.01 ₱50,671,114.39 ₱69,671,413.16

Non-Current Assets
Property, Plant, and ₱ 7,046,610.88 ₱6,892,227.99 ₱6,274,696.63 ₱5,657,165.27 ₱5,039,633.91 ₱4,422,102.55
Equipment
Security Deposit N4 ₱ 495,000.00 ₱ 495,000.00 ₱ 495,000.00 ₱ 495,000.00 ₱ 495,000.00 ₱ 495,000.00
Total Non-Current ₱ 7,541,610.88 ₱ 7,387,227.99 ₱ 6,769,696.63 ₱ 6,152,165.27 ₱ 5,534,633.91 ₱ 4,917,102.55
Assets
Total Assets ₱ 15,000,000.00 ₱14,656,671.16 ₱26,651,118.33 ₱40,292,638.28 ₱56,205,748.30 ₱74,588,515.71
LIABILITIES
Current Liabilities
SSS Payable S18 ₱ ₱ 50,732.63 ₱ 51,905.00 ₱ 59,985.00 ₱ 55,480.00 ₱ 57,105.00
-
Phil-Health Payable S19 ₱ ₱ 16,692.76 ₱ 19,399.08 ₱ 22,308.94 ₱ 23,156.68 ₱ 26,389.36
-
Pag-ibig Payable S20 ₱ ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00 ₱ 4,600.00
-
Witholding Tax S30 ₱ ₱ ₱ 48,122.60 ₱ 52,459.91 ₱ 64,622.35 ₱ 73,876.12
Payable - -
Other Salaries S21 ₱ ₱ 71,095.84 ₱ 239,732.12 ₱ 248,113.43 ₱ 257,541.74 ₱ 266,813.25
Payable -
Utilities Payable S8 ₱ ₱ 46,864.86 ₱ 48,411.40 ₱ 50,105.80 ₱ 52,009.82 ₱ 53,882.17
-
VAT Payable S28 ₱ ₱ 325,104.68 ₱ 1,659,927.65 ₱ 1,947,550.46 ₱ 2,174,573.35 ₱ 2,450,610.39
-
Income Tax Payable ₱ ₱ 355,475.35 ₱ 3,070,282.81 ₱ 3,442,122.74 ₱ 3,943,616.95 ₱ 4,475,965.35
-
Total Current ₱ ₱ 870,566.12 ₱ 5,142,371.66 ₱ 5,821,246.28 ₱ 6,575,600.89 ₱ 7,409,241.64
Liabilities -
PARTNER’S CAPITAL
Matunog, Capital N2 ₱2,000,000.00 ₱1,837,687.80 ₱2,867,115.93 ₱4,595,036.55 ₱6,615,698.65 ₱8,954,997.23
Mercado, Capital N2 ₱2,000,000.00 ₱1,837,687.80 ₱2,867,115.93 ₱4,595,036.55 ₱6,615,698.65 ₱8,954,997.23
Rodrigo, Capital N2 ₱2,000,000.00 ₱1,837,687.80 ₱2,867,115.93 ₱4,595,036.55 ₱6,615,698.65 ₱8,954,997.23
Camilotes, Capital N2 ₱2,000,000.00 ₱1,837,687.80 ₱2,867,115.93 ₱4,595,036.55 ₱6,615,698.65 ₱8,954,997.23
Embalzado, N2 ₱2,000,000.00 ₱1,837,687.80 ₱2,867,115.93 ₱4,595,036.55 ₱6,615,698.65 ₱8,954,997.23
Capital
Bernal, Capital N2 ₱5,000,000.00 ₱4,594,908.81 ₱7,168,865.27 ₱11,489,314.96 ₱16,541,728.13 ₱22,390,528.05
TOTAL ₱15,000,000.00 ₱13,786,105.05 ₱21,508,746.67 ₱34,471,392.01 ₱49,630,147.40 ₱67,179,274.07
PARTNER’S
CAPITAL
TOTAL ₱15,000,000.00 ₱14,656,671.16 ₱26,651,118.33 ₱40,292,638.28 ₱56,205,748.30 ₱74,588,515.71
LIABILITIES
AND
PARTNER’S
CAPITAL
 LUCID PINNACLE MANUFACTURING COMPANY
PROJECTED COMMON-SIZE BALANCE SHEET AS OF THE YEARS ENDED 2022-2026
PRE- 2022 2023 2024 2025 2026
OPERATIONS
S/N
ASSETS
Current Assets
Cash In Bank 49.72% 42.88% 60.15% 72.01% 79.50% 85.01%
Inventory 0.00% 6.72% 14.45% 12.72% 10.65% 8.40%
Total Current Assets 49.72% 49.60% 74.60% 84.73% 90.15% 93.41%

Non-Current Assets
Property, Plant, and 46.98% 47.02% 23.54% 14.04% 8.97% 5.93%
Equipment
Security Deposit N4 3.30% 3.38% 1.86% 1.23% 0.88% 0.66%
Total Non-Current 50.28% 50.40% 25.40% 15.27% 9.85% 6.59%
Assets
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
 LUCID PINNACLE MANUFACTURING COMPANY
PROJECTED COMMON-SIZE BALANCE SHEET AS OF THE YEARS ENDED 2022-2026
PRE- 2022 2023 2024 2025 2026
OPERATIONS
S/N
ASSETS
Current Assets
Cash In Bank 49.72% 42.88% 60.15% 72.01% 79.50% 85.01%
Inventory 0.00% 6.72% 14.45% 12.72% 10.65% 8.40%
Total Current Assets 49.72% 49.60% 74.60% 84.73% 90.15% 93.41%

Non-Current Assets
Property, Plant, and 46.98% 47.02% 23.54% 14.04% 8.97% 5.93%
Equipment
Security Deposit N4 3.30% 3.38% 1.86% 1.23% 0.88% 0.66%
Total Non-Current 50.28% 50.40% 25.40% 15.27% 9.85% 6.59%
Assets
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
LIABILITIES
Current Liabilities
SSS Payable S18 0.00% 5.83% 1.01% 0.93% 0.84% 0.77%
Phil-Health Payable S19 0.00% 1.92% 0.38% 0.38% 0.35% 0.36%
Pag-ibig Payable S20 0.00% 0.53% 0.09% 0.08% 0.07% 0.06%
Witholding Tax Payable S30 0.00% 0.00% 0.94% 0.90% 0.98% 1.00%
Other Salaries Payable S21 0.00% 8.17% 4.66% 4.26% 3.92% 3.60%
Utilities Payable S8 0.00% 5.38% 0.94% 0.86% 0.79% 0.73%
VAT Payable S28 0.00% 37.34% 32.28% 33.46% 33.07% 33.08%
Income Tax Payable 0.00% 40.83% 59.71% 59.13% 59.97% 60.41%
Total Current Liabilities 0.00% 5.94% 19.30% 14.45% 11.70% 9.93%
PARTNER’S CAPITAL
Matunog, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Mercado, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Rodrigo, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Camilotes, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Embalzado, Capital N2 13.33% 12.54% 10.76% 11.40% 11.77% 12.01%
Bernal, Capital N2 33.33% 31.35% 26.90% 28.51% 29.43% 30.02%
TOTAL PARTNER’S 100.00% 94.06% 80.70% 85.55% 88.30% 90.07%
CAPITAL
TOTAL LIABILITIES 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
AND PARTNER’S
CAPITAL
 FINANCIAL RATIOS

Current Ratio Acid Test Ratio

Debt Ratio Return on Equity
Total Asset Fixed Asset
Turnover Turnover
Inventory Turnover Gross Profit Ratio
Operating Margin Return on Assets
Ratio Ratio
 PAYBACK PERIOD
PAYBACK PERIOD COMPUTATION
2022 2023 2024 2025 2026
INVESTMENT ₱
15,000,000.00
CASH FLOW ₱ ₱ 6,284,600.31 ₱ 16,029,317.79 ₱ ₱ 44,685,265.06
(83,221.76) 29,015,062.28
CUMULATIVE ₱(15,000,000.00 ₱(15,083,221.76) ₱ ₱ 7,230,696.34 ₱ ₱ 80,931,023.68
CASH FLOW ) (8,798,621.45) 36,245,758.62

WHOLE YEAR 0 0 0 2 3 4

FRACTION 0.55 0.25 0.81

PAYBACK 3.24920
PERIOD

 P𝑎𝑦𝑏𝑎𝑐𝑘 𝑃𝑒𝑟𝑖𝑜𝑑 =
 PAYBACK PERIOD CONCLUSION

• Based on the computation, the payback period of Lucid Pinnacle Manufacturing

Company takes up to approximately 3.25 years or 3 years, 2 months, and 23 days

since the start of its operations. It is the goal for the company to regain the investment

within five years. Therefore, we can say that the proposed business of Lucid Timber

Mahogany Liquid Wax is FEASIBLE.