Executive Summary

Chesa Flour- Truly Pinoy Flour

Glimpse of a typical everyday life of Filipino family, one can have
an instant sense of warmth and gentleness with Nanays cooking sinangag
and pritong tuyo while everyone is savoring the goodness of kape and hot
pandesal. In merienda, they usually come together for a brief salu-salo of
pansit canton, juice and sandwich to fill empty stomach. Come night
time, Tatays bring home a loaf of bread, all time favorite cheese spread
and chichiria after a hard days work.
All through these years, the Filipinos, high and low, have live their
simple lives with baked goodies as prime necessity. Same is true to the
point that baked products are the second substitute to rice when it comes
to feed demands. Unknowingly to everyone, the bread that theyre eating
everyday is of imported character, not that Pinoy in essence. This is solely
because the Philippines is one of the top importers of flour in the world.
Entirely dependent to foreign sourcing, our commerce takes in the bitter
pill of having to adjust to inflation of price set by the flour manufacturing
leaders around the globe.
But fortunately, this is about to change. The nightmare of sky-high
and moody prices is now going to be a thing of the past. Highly creative
and genuinely competitive students developed a fresh way to reinvent
flour production and augment the dependence of our country to the
foreign trade. These proponents utilized the poorly regarded, unpopular,
and always taken for granted chesa. The lowly chesa, with Canistel as its
English name, is grown all throughout the country and profusely bearing
fruits all year round, though September and March record the highest
yield.

Bringing out the best from the Philippines vast resources and
combining it with scientific processes can actually create a difference and
impact the lives of every Pinoys. No one would want to eat the fruits of
chesa. Its unpopular to the taste buds. No one ever think that this very
fruit can serve the country big time. Why? Aside from being nutritionally
endowed with niacin, carotene, riboflavin and ascorbic acid, chesa, when
dried, can be processed into commercial flour. It is due to the fact that
chesa is very rich in starch which is the fundamental content of the multibillion dollar flour manufacturing industry. Really, flour that is truly
Pinoy.
Having a start-up capital of P300, 000.00, chesa production can be
put into full bloom. The management will be in the form of single
proprietorship and engage mainly on food processing by way of
manufacturing chesa into hard flour. Hard flour is used as a raw material
for bread, which holds the majority of demand while soft flour is used
primarily to bake cakes and pastries. It will be available for P28.00/kg.
per 25 kgs. sack. The price is cheaper than the prevailing market price
plus the feature of having a flour that is all Filipino with the taste that is
at par with the best in the flour business.
Shifting the paradigm of agriculture, from merely harvesting and
selling to harvesting then processing then exporting, can really be a
revolutionary way to fully realize the countrys potential to be one of the
leading flour producers in the world. On the personal level, no Filipino
can be deprived of the enjoyment of baked goodies with moments truly
enriched with their family enjoying the processed all Filipino Chesa
flour on the table.

Chapter I
INTRODUCTION
In the history of Philippine Baking Industry, it was never new that
our country was importing flour that most bake-shops were using. Thus,
it is the reason why baked products and pastries costs too much than
anticipated.
But why is it that no Filipino has ever discovered the use of
Philippines vast and enormous resources in the process? It is true and
evidential that many of us neglect to observe for these various cast of
resources that maybe used to battle the wide range and steed fast
importing of the countrys most used and consumed flour. No one has
ever scrutinized the potential of these vast resources to be internationally
competitive and that these maybe exported rather than that of importing.
With this adversary on the flour and milling industry, the
proponents come up into the idea of producing flour out of the vast and
enormous supply of fruit tree.
Canistel, commonly termed in Filipino as tiesa, is one of the vast
fruit tree found and grown in the country that most Filipino is not fond of
eating.
Canistel is an evergreen fruit tree that were widely grown and
propagated in tropic countries. As for the Philippines, tiesa is grown in
the months of September to March. They were being ignored by many
because of its yellowish brown color and soft texture. Never did one
know that a canistel is rich in many vitamins like niacin, carotene,
riboflavin and ascorbic acid. Canistel a s a fruit that is juicy and soft
contains pulp that are high in starch content which may be a good raw
materials for flour manufacturing.

The researchers find ways of manufacturing flour which are from

nutritious fruit tree that are widely grown and vast in the country of
cheaper in cost of production and easy to utilize.

CHAPTER II
MARKETING PLAN
Marketing has been defined as the business activities involved in
the flow of goods and services from the point of production to the point
of consumption. It is part of the function of marketing to take the goods
from the producers and to perform the necessary functions to make them
available to the consumer when he wants them, and in quantities he wants
them. Marketing also develops a demand for goods and then finds the
goods that will satisfy the demand.
A. Product
The project is focused on the production of tiesa flour, a truly Pinoy
flour. The kind of product that will be produced, given the two kinds
of flour,will be specifically hard flour. Hard flour is a kind of flour
that is used in bread baking.
Canistel, English name for Tiesa, a fruit tree widely grown in
tropical countries that blooms best during the months of September
until March. Canistel is a good source of carotene and has a fair level
of ascorbic acid. Fiber content of canistel is high which makes it
suitable as raw materials in flour making.
The product weighs 25 kilograms per sack and will have a katsa as
its primary packaging.
B. Target Market
Target market is a set of consumers the company decides to pursue.

Area Coverage. Various factors are considered before the proponents

came up with the succeeding decisions with this kind of product. The
proponents decided to be a market nicher where the focus of initial
distribution of the product is within the area of the province of Rizal,
then after the market penetration, it will be launched in a wider
segment.
Customer. The target market of the proposed product will be the
consumer market and the industrial market of Rizal. Consumer
market is composed of the general public while the industrial
consumer is the segment that acquires goods and or services for
business purpose which are classified to be the bakeshop
establishments in the province. The companys resources are limited
therefore concentrated marketing is best option.
As to the product, it can be seen that the proposed product is one of
the necessity in the country and is viewed to deviate the rate of skyrocketed price , the scenario is the opportunity for the product to be
known in the thriving baking industry of the country. Through
substantial campaigns, enormous promotions and systemized
production and operation, are the projects advantage against the
existing products. Mentioned earlier may also be the key to the
projects outstanding success and strong position in the market.
C. Demand and Supply Analysis
Demand is a schedule of various quantities of commodities which
buyers are willing and able to purchase at a given price, time and
place. On the other hand, supply is a schedule of various
commodities which sellers wishes to sell at a given place, price and
time.

Total Competitors Market Share

8%

11%

7%
9%
8%
8%
8%
8%

6%
11%

8%
8%

Philippine Flour Mills

Liberty Flour Mills

Wellington Flour Mills

RFM Corp.

Universal Robina Corp.

Gen. Milling corp.

PILMICO Foods Corp.

San Miguel Mills

Philippine Foremost Milling Corp.

Morning Star Milling Corp.

Delta Milling Corp.

Other Flour Miller

Base on survey conducted, the market shares of the commercial

mills in the country are as follows: the PAFMIL with the Philippine Flour
Mills has 11% of the total market share, the Liberty Flour Mills with 9%,
Wellington Flour Mills 9%, RFM Corp. 8%, Universal Robina Corp. 9%,
Gen. Milling Corp. 9%, PILMICO Foods Corp. 10% while Chamflour
with San Miguel Mills 6%, Philippine Foremost Milling Corp. 6%,
Morning Star Milling Corp. 8%, Delta Milling Corp. 7% and the other
flour millers have a 9% market share. The stated figures are provided by
the website of Philippine Association of Flour Miller courtesy of Google,
which the latest edition dated 2008.

Total Number of Bakeries using Hard Flour in Rizal

City/ Town in Rizal Province
Angono
Antipolo
Baras
Binangonan
Cainta
Cardona
Jala-jala
Morong
Pililia
Rodriguez
San Mateo
Tanay
Taytay
Teresa
Total Bakeries in Rizal

Particulars
57
92
46
65
81
39
23
60
33
58
62
41
73
37
767

Potential Market Demand of Tiesa Flour

In a survey conducted by the proponents using the total population
of the Bakeshops in the province, 6% of the respondents agreed to try to
use tiesa flour in their bake items production.

Actual Number of Target Market

Total Bakeshop in Rizal
Potential Demand
Actual Target Number of Market

767
6%
46

As can be gleaned in the table, the target market of the business is the
industrial market within the bounds of Rizal province.
D. Projected Sales
Per Month:
Weekly production capacity

36

Multiplied by: no. of weeks

Monthly production (in sacks)

144

Less: 3% Ending Inventory

Total Sales Quantity

140

Multiplied by: selling price

700.00

Monthly Gross Sales

P 98,000.00

Sales Forecast in Quantity and Volume

Annual Production
Beg Invty

2010
1,728

2011
1,814
52

2012
1,905
56

2013
2,000
59

2014
2,100
62

Goods avail. for

Sale
Sales quantity
Selling Price
Annual Projected
Sales

1,728
1,676

1,866
1,810

1,961
1,902

2,059
1,997

2,162
2,097

700.00

710.00

720.00

730.00

1,173,200.00

1,285,100.00

740.00
1,551,
780.00

1,369,440.00 1,457,810.00

E. Marketing Strategy
Marketing strategy is one of the major factors that affect business
profitability. It is through proper organization, implementation, and right
timing of introduction of this program shall pave the way for the
attainment of the business priority to gain profit.
Practices of Competitors. Millers of flour in the country are major
importers that were supported by their governing associations. These
facts make the millers well supported and secured when it comes to
advertising and promoting of flour products. They use massive campaigns
in the bakeshop industry in the country.
Own Marketing Strategy. Considering the limited resources, the
proponents will promote the business by using extensive campaigns that
includes personal selling, product testing, telephone selling, sponsorships
and freebies and give-aways.
F. Marketing Expenses
The product will be incurring minimal expenses in its
advertisement and promotional materials. Product testing and personal
selling in excess will be done continuously to ensure market stability and
product awareness.
Following are the breakdown of marketing expenses:
Personal Selling Expense

12,000.00

Product Test Expense

3,500.00

10

Sponsorship

30,000.00

Freebies

15,000.00

Total

60,500.00

CHAPTER III
PRODUCTION/ OPERATION PLAN

11

Production is defined as the creation of goods. Its basic function is

to change raw materials into a final useful output. It involves either
change in the nature or forms of the raw materials or can be both.
This chapter discusses the complete production process and
facilities needed in the operation of the production of flour. This also
includes plant location, labor and production schedule.
A. Technical Product Description
The proponents had developed a new product, using Tiesa
(Pouteria) in making flour, and conceptualized an effective packaging for
this novel creation.
The main ingredient in manufacturing tiesa flour is the raw fruit
itself. It will be packed into sack and each sack contains 25 kilograms.
B. Steps.
Making Tiesa Flour (Pouteria Flour) is very facile. First, crush the
chesa. Then, put these in the compressor until there is no sap left. Second,
put the residue in to a tray then sundry it. Pulverize the dried residue
using chesa electric grinder until the texture is very fine just like the
normal flour. Pack is a sack for distribution.
C. Monthly Schedule
Being a neophyte in the industry, working overtime is necessary to
survive the competitive market. The production of Tiesa Flour (Pouteria
Flour) will be six days a week. With this schedule of production, large
quantity of the flour will be produced and therefore result in higher sales
volume.
D. Labor

12

To be able to meet the target production volume, the business

will need three capable and knowledgeable workers to handle the
production of flour. They will be working five days a week and will be
provided with considerable stipend payable on a weekly basis.
The projects day to day operation; the financial and marketing
aspects will be handled by the proprietor.
E. Machinery/ Equipment Requirement
Some equipment is needed in the production. These include
shredder to shred the tiesa, an electric grinder to make it into real flour,
weighing scale for weighing the tiesa flour and trays for proper storage.
Sealer is also needed for the packaging of the tiesa flour.
F. Raw Materials
In the production of the tiesa flour, the only raw material needed
would be the unripe fruit itself. It will then be processed into flour and
weigh accurately.
G. Plant Location
In producing or making a product, one of the important factors
that help in production is the plant location.
Plant location is the place wherein the laborers are grouped or
work together in a systematic way or process to produce a product well.
The main production of Tiesa Flour will be made at
Binangonan, Rizal to where most suppliers are present.
H. Waste Disposal System
The project uses tiesa fruit as its main raw material. The
ingredients to be used in producing Tiesa Flour are soluble because of its

13

organic being. Therefore there is no risk that will cause bad effect to the
environment. All the Tiesa fruit skin can be used as fertilizer which helps
the soil to become fertile. It will be put inside a sack and will be given on
a weekly basis to those who need it for organic purposes.
I. Production Cost
Per unit (in Peso):
25 kilograms
Total Cost
Direct materials
Direct labor

Qtty.

432,000.00

Unit Cost

1728

250

180,000.00

1728

104.17

59,856.00

1728

34.64

Overhead
Total Unit Cost

388.81

Chapter IV
ORGANIZATIONAL PLAN
A. Legal Form of Business

14

The business will be in the form of sole proprietorship. It will be

owned and operated solely. The business operations and transactions will
be done by the owner. He will be the accountant, marketer and production
head of his own enterprise. What hell be hiring are his flour makers that
would range into three persons.
Organizational Structure
z

Owner
Of the
Business

Worker 1

Worker 2

Worker 3

The organization type that will be used to utilize business operations is

the line and staff type structure. Line type of business structure is used
when the authority comes directly from the owner and is easily relayed on
the workers.
B. Qualification of Officers
Person who will be designated by the owner were accountable in
the business transactions and operations. Major decisions were made by

15

the owner so he needs men that who were cooperative, hardworking and
reliable.
Since he is the one liable for the whole business functions, he need
to be qualified enough and he need to be well-informed and well educated
in the essential; business conundrum.
C. Equipment
The production will require several office equipment like a
computer set for the documents and files of the business and also for
communication purposes. As well as filling cabinets for the important
copies of papers and documents relative to business.
D. The Administrative Expense
There will be no administrative expenses because the owner will be
the same person who will conduct business practices and will gain
compensation through the business profit itself.
E. Schedule of Activities
The schedule of activities indicates the sort of activities to be done
by the researchers in a specific period of time.
This shows the pre-operating activities of the business and the time
in which the activity should be accomplished. The purpose of this is to
guide the proponents in order to do and prepare the activities in time.
The project will start in September for the general planning. The
start of normal operation is June.

16

Activities

Month

General project planning feasibility

Sourcing of financial requirements
Securing permits and licenses
Acquisition of equipments, tools,

September-October
November
November
December

machineries and supplies

Hiring of labor
Start of normal operation

December
January

17

List of activities
General project planning

Sept

Oct

Nov

Dec

Jan

Sourcing of financial
requirements
Securing permits and licenses
Acquisition of equipments, tools,
machineries and supplies
Hiring of labor
Start of normal operation

Gantt Chart

18

Chapter 5
Financial Plan
Finances are the lifeblood of the business. Without proper financing, a
business cannot be established. Any businessman analyzes the profitability of
the project by planning his actions and organizing figures and weighing the
risk of his endeavor. It is important to know the availability of funds and at the
same time, how to properly manage the available finances in order to ensure
smooth operations and general income.
The researchers provided financial estimates to prove the probability,
viability and flexibility of the proposed project. These include projected
income statements, projected balance sheets, projected cash flows and
projected capital. The assumptions and the calculations of financial statements
made by the researchers are also provided as well as the financial ratios for
financial analyses.

19

PROJECTED INCOME STATEMENT

Projected Sales
Sales Discount (5%)
Net Sales
less: Cost of Sales
Gross Profit
Less: Pre-Operating Expenses
Operating Expenses
Taxes and licenses
Office supplies
Depreciation
Utilities
Telephone
Repairs and Maintenance
Bad debts
Delivery
Marketing
Rent
Total Expenses
Net Income

2010
1,173,200.00
58,660.00
1,114,540.00

2011
1,285,100.00
64,255.00
1,220,845.00

2012
1,369,440.00
68,472.00
1,300,968.00

2013
1,457,810.00
72,890.50
1,384,919.50

2014
1,551,780.00
77,589.00
1,474,191.00

651,638.11
462,901.89
92,500.00

685,435.24
535,409.76
-

714,747.17
586,220.83
-

734,298.82
650,620.68
-

760,124.99
714,066.01
-

7,448.20
3,000.00
3,000.00
3,400.00
13,200.00
3,500.00
11,012.40
14,400.00
57,000.00
60,000.00
268,460.60
194,441.29

8,606.86
3,100.00
3,000.00
3,570.00
13,860.00
3,500.00
13,240.50
15,120.00
59,850.00
63,000.00
186,847.36
348,562.40

9,725.75
3,202.00
3,000.00
3,748.48
14,553.00
3,570.00
13,811.09
15,876.00
62,842.50
66,150.00
196,478.82
389,742.01

10,990.10
3,306.00
3,000.00
3,935.96
15,280.65
3,570.00
14,506.85
16,669.80
65,984.62
69,457.50
206,701.48
443,919.20

12,418.81
3,412.00
3,000.00
4,132.72
16,044.68
3,641.40
15,644.45
17,503.29
69,283.86
72,930.38
218,011.59
496,054.42

20

PROJECTED CASH FLOW STATEMENT

2010
Cash Flow From Operating Activities
Net Income
Add: Depreciation
Total
Less: Increase/decrease in Inventory
Increase/decrease in Acc. Rec.
Total
Net Cash Provided from Operating
Cash Flow from Investing Activities
Machineries
Production Equipments
Office Equipments
Cash from Investing
Cash Flow from Financing Activities
Owner's Capital
Owner's Drawings
Cash from Financing
Increase in Cash
Add: Cash Balance, Beginning
Cash Balance, Ending

194,441.29
19,000.00
213,441.29
(20,217.89)
(150,462.90)
(170,680.79)
42,760.50

2011

2012

2013

2014

348,562.40
19,000.00
367,562.40
(10,064.56)
(14,351.18)
(24,415.74)
343,146.67

389,742.01
19,000.00
408,742.01
(15,330.64)
(10,816.60)
(26,147.24)
382,594.76

443,919.20
19,000.00
462,919.20
(21,878.65)
(11,333.45)
(33,212.10)
429,707.10

496,054.42
19,000.00
515,054.42
(33,743.89)
(12,051.65)
(45,795.54)
469,258.88

300,000.00
300,000.00

(34,856.24)
(34,856.24)

(38,974.20)
(38,974.20)

(44,391.92)
(44,391.92)

(49,605.44)
(49,605.44)

237,760.50
237,760.50

308,290.43
237,760.50
546,050.92

343,620.56
546,050.92
889,671.48

385,315.18
889,671.48
1,274,986.66

419,653.44
1,274,986.66
1,694,640.10

(70,000.00)
(20,000.00)
(15,000.00)
(105,000.00)

21

PROJECTED BALANCE SHEET

Assets
Cash
Accounts Receivables, net
Inventory
Machineries
Less: Accum. Depreciation
Production Equipments
Less: Accum. Depreciation
Office Equipments
Less: Accum. Depreciation
Total Assets

Owner's Equity
Owner's Capital
Add: Net Income
Total
Less:Owner's Drawings (10% of
Net Income)
Total Owner's Equity

2010

2011

237,760.50
150,462.90
20,217.89
70,000.00
12,000.00
20,000.00
4,000.00
15,000.00
3,000.00
494,441.29

546,050.92
164,814.08
30,282.45
70,000.00
24,000.00
20,000.00
8,000.00
15,000.00
6,000.00
808,147.45

889,671.48
175,630.68
45,613.09
70,000.00
36,000.00
20,000.00
12,000.00
15,000.00
9,000.00
1,158,915.26
.

1,274,986.66
186,964.13
67,491.75
70,000.00
48,000.00
20,000.00
16,000.00
15,000.00
12,000.00
1,558,442.54

1,694,640.10
199,015.79
101,235.63
70,000.00
60,000.00
20,000.00
20,000.00
15,000.00
15,000.00
2,004,891.52

300,000.00
194,441.29
494,441.29
-

494,441.29
348,562.40
843,003.69
34,856.2
4
808,147.45

808,147.45
389,742.01
1,197,889.46
38,974.2
0
1,158,915.26

1,158,915.26
443,919.20
1,602,834.46
44,391.9
2
1,558,442.54

1,558,442.54
496,054.42
2,054,496.96
49,605.4
4
2,004,891.52

494,441.29

2012

2013

2014

22

General Assumptions Supporting Financial Documents

1. The business will be in the form of sole proprietorship.
2. Annual production is assumed to increase by 5% yearly.
3. Annual sales will be 97% of the annual production. Sales discount
is given at 5%
4. Accounts receivable will be 15% of the net sales and an allowance
for bad debts of 10% is assumed.
5. Direct labor and direct materials are subject to 5% increase every
other year.
6. Utilities expense will increase by 5% annually where in 2/3 of its
cost will be used for the production.
7. Packaging will increase by 2% every year of operation.
8. Other expenses will increase at 5% yearly.
9. All indirect expenses that are attributed for the production will be
part of cost of goods sold under factory overhead.
10.Owners drawing will start on the second year of operation which
will cover 10% of the net income.

23

SCHEDULES
ANNUAL PRODUCTION
2010
Annual Production (in sacks)
Increase per year (5%)
Estimated annual production

2011

2012

2013

2014

1,728

1,728
86.4

1,814
90.7

1,905
95.25

2,000
100

1,728

1,814

1,905

2,000

2,100

ACCOUNTS RECEIVABLES AND ALLOWANCE FOR BAD DEBTS

Accounts receivables(15% of Net sales)
Bad debts (10%)
Accounts receivables, net

2010
167,181.00
16,718.10
150,462.90

2011
183,126.75
18,312.68
164,814.08

2012
195,145.20
19,514.52
175,630.68

2013
207,737.93
20,773.79
186,964.13

2014
221,128.65
22,112.87
199,015.79

DIRECT LABOR
Wage per day
No. of works in month
Monthly
Annually
No. of Workers
Total annual wage

2010
250.00
20
5,000
60,000
3
180,000

2011
250.00
20
5,000
60,000
3
180,000

2012
262.50
20
5,250
63,000
3
189,000

2013
262.50
20
5,250
63,000
3
189,000

2014
275.63
20
5,512.50
66,150
3
198,450

24

RAW MATERIALS
Purchases
Increase per year (5%)
Annual Raw Materials

2010
432,000.00
432,000.00

2011
432,000.00
21,600.00
453,600.00

2012
453,600.00
22,680.00
476,280.00

2013
476,280.00
23,814.00
500,094.00

2014
500,094.00
25,004.70
525,098.70

FACTORY OVERHEAD

Utilities
Packaging
Depreciation
Total Factory Overhead

2010
6,800.00
34,056.00
19,000.00
59,856.00

2011
7,140.00
35,759.80
19,000.00
61,899.80

2012
7,496.96
38,300.85
19,000.00
64,797.81

2013
7,871.92
40,211.55
19,000.00
67,083.47

2014
8,265.44
43,054.74
19,000.00
70,320.18

2010
1,728
1676
52
388.81
20,217.89

2011

2012

2013

2014

INVENTORY
Goods avail. for Sale
Sales quantity
Inventory
Unit Cost
Inventory at cost

2,644
2565
79
383.32
30,282.45

3,967
3848
119
383.30
45,613.09

5,951
5772.47
179
378.04
67,491.75

8,927
8658.7341
268
378.03
101,235.63

25

PACKAGING
2010
Quantity (in packs)
Cost per pack
Total Cost
UTILITIES EXPENSE (5% INCREASE)

1,200
28.38
34,056

2010
Electricity
Water
Total
X No. of mos. in a year
Annual utilities expense

2011

2012

1,260
28.38
35,759.80
2011

600
250
850
12
10,200

2013

1,323
28.95
38,300.85
2012

630
262.5
892.5
12
10,710

2014

1,389
28.95
40,211.55
2013

661.5
275.62
937.12
12
11,245

1,458
29.53
43,054.74
2014

694.58
289.41
983.99
12
11,808

729.3
303.88
1033.18
12
12,398

COST OF GOODS SOLD

2010
Beg. Invty
Direct Materials
432,000.00
Direct Labor
180,000.00
Factory
59,856.00
Total Mgf. Costs
671,856.00
Total Goods Avail .for sale
671,856.00
Less: End. Invty
20,217.89
COGS
651,638.11
DEPRECIATION OF MACHINERIES

2011

2012
20,217.89
453,600.00
180,000.00
61,899.80
695,499.80
715,717.69
30,282.45
685,435.24

2013
30,282.45
476,280.00
189,000.00
64,797.81
730,077.81
760,360.26
45,613.09
714,747.17

Industrial Oven
Divided by: Scrap Value
Accum. Depreciation per year

2014
45,613.09
500,094.00
189,000.00
67,083.47
756,177.47
801,790.56
67,491.75
734,298.82

67,491.75
525,098.70
198,450.00
70,320.18
793,868.88
861,360.63
101,235.63
760,124.99

38,000.00
5
6,600.00

26

Industrial Grinder

32,000.00

Divided by: Scrap Value

Accum. Depreciation per year

5,400.00

DEPRECIATION OF PRODUCTION EQUIPMENTS

Pangbayo
Purchase Price

Other Equipments
15,000.00

Divided by est. useful life

Purchase Price
5

Annual Depreciation

3,000.00

Divided by est. useful life

Annual Depreciation

5,000.00
5
1,000.00

DEPRECIATION OF OFFICE EQUIPMENT

Computer
Purchase Price

15,000.00

Divided by est. useful life

Annual Depreciation

5
3,000.00

DEPRECIATION EXPENSE
Machineries
Production Equipments
Office Equipments
Total

2010
12,000.00
4,000.00
3,000.00
19,000.00

2011
12,000.00
4,000.00
3,000.00
19,000.00

2012
12,000.00
4,000.00
3,000.00
19,000.00

2013
12,000.00
4,000.00
3,000.00
19,000.00

2014
12,000.00
4,000.00
3,000.00
19,000.00

27

INSTALLATION COSTS
Electricity
Water
Telephone
Total

PRE-OPERATING EXPENSES
Marketing
Installation costs
Licenses
Total

10,000.00
10,000.00
5,000.00
25,000.00

60,500.00
25,000.00
7,000.00
92,500.00

PROFITABILITY RATIOS
PROFIT ON SALES
Net Income
divided by:net sales
POS ratio

2010
194,441.29
1,114,540.00
0.17

2011
348,562.40
1,220,845.00
0.29

2012
389,742.01
1,300,968.00
0.30

2013
443,919.20
1,384,919.50
0.32

2014
496,054.42

2010
194,441.29
300,000.00

2011
348,562.40
300,000.00

2012
389,742.01
300,000.00

2013
443,919.20
300,000.00

2014
496,054.42
300,000.00

0.65

1.16

1.30

1.48

1.65

1,474,191.00

0.34

RETURN ON INVESTMENT
Net Income
Investment
ROI

28

PAYBACK PERIOD
Investment
Net Cash from Operating
Payback Period

2010
300,000.00
42,760.50
7.02

2011
300,000.00
343,146.67
0.87

2012
300,000.00
382,594.76
0.78

2013
300,000.00
429,707.10
0.70

2014
300,000.00
469,258.88
0.64

29

30