Republic of the Philippines

BATANGAS STATE UNIVERSITY

Gov. Pablo Borbon Campus I, Batangas City

LABORATORY SCHOOL

SENIOR HIGH SCHOOL – GRADE 12

Lacocoa Jell
A Business Plan
Presented to
The Faculty of Senior High School Department

In Fulfillment of the

Requirements for the Entrepreneurship Subject

By

Alvarez, John Jearome B

Blanco, Christian A.

De Guzman, Nelson Aldwin E.

Montoya, Kenneth F.

Plata, Andrea Christelle D.

Sanvictores, Raphael R.

Tusing, Asiah Chelsea P.

2018
 TABLE OF CONTENTS
I. Introductory Page ............................................................................................ 5

1.1 Name and address of the business ............................................................ 5

1.2 Name and adress of the owners/ entrepreneur ........................................... 5

1.3 Nature of the Business ................................................................................ 5

1.4 Amount of Financing Needed ...................................................................... 5

II. Executive Summary ........................................................................................ 6

2.1 Business ...................................................................................................... 6

2.2 Business Opportunity................................................................................... 6

2.3 Competitive Strategy ................................................................................... 6

2.4 Economics of the Business.......................................................................... 6

2.5 Founder ....................................................................................................... 6

III. Environmental and Industry Analysis .......................................................... 6

3.1 Conditions of the General Environment ....................................................... 7

3.1.1 Socio-cultural Conditions ....................................................................... 7

3.1.2 Technological Conditions ...................................................................... 7

3.1.3 Economic Conditions ............................................................................. 7

3.1.4 Politico-legal Conditions ........................................................................ 8

3.2 Conditions of the Specific Environment ....................................................... 8

3.2.1 Supply and Demand .............................................................................. 8

3.2.2 Competition ........................................................................................... 8

IV. Description of the Business ......................................................................... 9

4.1 Products and/or Service .............................................................................. 9

4.2 Size of the Business .................................................................................... 9

4.3 Mission Statement and Core Values............................................................ 9

 4.3.1 Mission Statement ................................. Error! Bookmark not defined.

4.3.2 Core Values........................................... Error! Bookmark not defined.

4.4 Location of the Business and its Major Physical Assets ............................ 10

4.5 Background of the Business Owners/Entrepreneurs ................................. 10

V. Production Plan .............................................. Error! Bookmark not defined.

5.1 Manufacturing Process ................................ Error! Bookmark not defined.

5.2 Physical Plant .............................................. Error! Bookmark not defined.

5.3 Machinery and Equipment ........................... Error! Bookmark not defined.

5.4 Suppliers of Raw Materials .......................... Error! Bookmark not defined.

5.5 Future Capital Equipment Needs ................. Error! Bookmark not defined.

VI. Operations Plan ............................................. Error! Bookmark not defined.

6.1 Company’s Operation .................................. Error! Bookmark not defined.

VII. Marketing Plan ............................................................................................ 11

7.1 Pricing........................................................................................................ 11

7.2 Distribution ................................................................................................. 11

7.3 Promotion .................................................................................................. 13

7.4 Sales Forecast ........................................................................................... 13

VIII. Organizational Plan ................................................................................... 14

8.1 Form of Ownership ...................................... Error! Bookmark not defined.

8.2 Principal Shareholder or Partners ................ Error! Bookmark not defined.

8.2.1 Principal Shareholder ............................ Error! Bookmark not defined.

8.2.2 Partners ................................................. Error! Bookmark not defined.

8.3 Organizational Chart/Lines of Authority ....... Error! Bookmark not defined.

8.4 Background of the Management Team........ Error! Bookmark not defined.

 8.5 Roles and Responsibilities of Management Team ..................................... 14

IX. Financial Plan .............................................................................................. 18

9.1 Start-up Funding .......................................... Error! Bookmark not defined.

9.2 General Assumptions .................................. Error! Bookmark not defined.

9.3 Start – Up Costs .......................................... Error! Bookmark not defined.

9.4 Pro Forma Balance Sheet ........................... Error! Bookmark not defined.

9.5 Pro Forma Income Statement ...................... Error! Bookmark not defined.

9.6 Cash Flow Projection ................................... Error! Bookmark not defined.

9.7 Sources and Uses of Funds ........................ Error! Bookmark not defined.

9.8 Breakeven Analysis ..................................... Error! Bookmark not defined.

X. Assessment of Risk ....................................... Error! Bookmark not defined.

10.1 Risks .......................................................... Error! Bookmark not defined.

10.2 Strategies for preventing or minimizing risks ............ Error! Bookmark not

defined.

XI. Timetable/Milestones .................................... Error! Bookmark not defined.

11.1 Timetable ................................................... Error! Bookmark not defined.

11.2 Milestones ................................................. Error! Bookmark not defined.

XII. Appendices ................................................... Error! Bookmark not defined.

12.1 Price Lists From Suppliers ......................... Error! Bookmark not defined.

12.2 Other Products .......................................... Error! Bookmark not defined.

12.3 Operational equipment ............................. Error! Bookmark not defined.

12.4. Market Research Data .............................. Error! Bookmark not defined.

12.5 Curriculum Vitae ........................................ Error! Bookmark not defined.

 I. Introductory Page

1.1 Name and address of the business

Savory Sweets’

Rizal Avenue, Poblacion 18, Batangas City

1.2 Name and adress of the owners/ entrepreneur

Montoya, Kenneth F. – Dumantay, Batangas City

Sanvictores, Raphael R. – Rizal Avenue Extension, Batangas City

The Savory Snack will be formed as a Partnership equally dividedly owned

by the two said owners above

1.3 Nature of the Business

. Located at Rizal Avenue, Poblacion 18, Batangas City. Savory Sweets is

a dessert bar that will provide a combination of excellent food at value pricing, with

fun packaging and atmosphere. Savory Snack is the answer to an increasing

demand for dessert-type food, to be consumed while talking with friends, bonding

with your family or after a long day of travel. Savory Desserts will entice youngsters

to bring their friends and family with our innovative environment, irresistible La

cocoa Jell, an improved variant of Choco jelly and selection of unique flavor of

desserts. The business also offers pre-made as well as made to order food and

deserts using local and natural ingredients

1.4 Amount of Financing Needed

The amount of financing needed is approximately five hundred thousand

pesos (Php 20,000)

 II. Executive Summary

2.1 Business

Savory Desserts is dessert bar located along Rizal Avenue, Poblacion 18

in Batangas City. It can loosely be described as a quick-service restaurant where

customers sit around and watch their desserts being made. The show, as well as

the dessert, is our main selling point. The business also offers pre-made as well

as made to order food and deserts using local and natural ingredients.

2.2 Business Opportunity

We plan to manipulate our location in the Rizal Avenue to our utmost

advantage. Due to the moderate to heavy traffic in the morning and during rush

hour because of the number of vehicles and people passing by in the streets, it will

give us an edge as a new business.

2.3 Competitive Strategy

Because of the businesses that filled up the avenue for the past few years,

this avenue has received an added boost of increased in traffic and increased in

population giving us the opportunity to attract more customers and a higher chance

of being noticed.

Savory Desserts will hold true to its vision of being new concept with an old

fashioned feel in order to become favorite spot for Batangueños.

2.4 Economics of the Business

Savory Desserts founders have an initial capital of Php. 2,000. An additional

Php 5,000 investment will be sought from family and friends. A loan of ₱15,000 will

be obtained from a bank. The loan will be paid off in full by year 1. In year 3 Savory

Desserts will seek additional loans to expand its original location into new market.
2.5 Founder

There are two founders of Savory Desserts namely Kenneth Montoya and

Raphael Sanvictores.

III. Environmental and Industry Analysis

3.1 Conditions of the General Environment

3.1.1 Socio-cultural Conditions

The Filipinos are deemed inventive with food due to the fact that they

tend to be experimental. Alongside this, their taste and preferences

especially with sweets and dessert vary as time passes. This leads to trends

being uncertain, thus affecting the business. Lacocoa Jell is an innovative

dessert that introduces a new experience worth craving for. Since

commonly served dessert specifically coffee jelly is still prevalent at the time

being, the entrepreneurs of this company is required to formulate methods

in order to have their product attract the attention of the consumers.

3.1.2 Technological Conditions

Across the Internet, a lot of new products and services have been

introduced. Even consumers throw in their feedbacks, by utilizing the

different functions of social media platform. The objective of the company

regarding this is to provide exposure to their product through the mentioned

benefit from technology. The Internet is also an effective avenue for

introducing the product to a diverse array of consumers. It is expected to

result in having the product go along with what the competitors have.

3.1.3 Economic Conditions

Various factors that can be found in the economy will greatly affect

both the company and the product itself. Some of them are inflation rates,

newly established laws and regulations, changes in costs and commodity

prices, and conditions that influence purchasing habits of the consumers.

The production may be affected due to the sudden adjustments of the prices
 of the ingredients needed. It might also result in price increase of the product

which will possibly deflate its purchasing power.

3.1.4 Politico-legal Conditions

The DOH is mandated by Republic Act No. 10611, otherwise known

as the Food Safety Act of 2013, to bear the specific responsibility of

ensuring the safety of all food processing and product packaging activities

(Section 18), and to develop and issue appropriate authorizations in the

form of a license and certificate of registration that would cover

establishments, facilities engaged in production, and products (Section 28).

Republic Act No. 9711, also known as the FDA Act of 2009 prohibits

the manufacture, importation, exportation, sale, offering for sale,

distribution, transfer, of retail of any food by any natural or juridical person

without a license to operate (LTO) from the FDA.

3.2 Conditions of the Specific Environment

3.2.1 Supply and Demand

Batangas State University Main Campus I located at Rizal Avenue

Extension, Batangas City will be the chosen market area. The students,

educators, and other employees of the university are the target market of

the company. Presumably, the mentioned customers are keen on

purchasing sweets, especially the students.

3.2.2 Competition

Since the business is located within Batangas State University Main

Campus I, the competitors of Lacocoa Jell are coffee jelly and other

desserts offered in the canteen and the café inside the school. Savory

Sweets’ product have a distinct taste that stands out among other sweets.

Its uniqueness deviates itself from other desserts out in the market.

Introducing a new twist and flavour at such an affordable price compared to

 others, will attract the attention of the customers and empower the selling

ability of the company.

IV. Description of the Business

4.1 Products and/or Service

Lacocoa Jell is an innovated form of one of the most common

desserts served and most Filipino consumers are accustomed to, namely

coffee jelly. The twist provided by the mentioned product is an outcome of

the research and experimentation of the entrepreneu rs. The quality of the

product is monitored, the appropriate coolness of the dessert itself is

maintained, and freshness is always guaranteed.

Lacocoa Jell is expected to offer the taste buds of the consumers a

new experience while giving a sense of nosta lgia of eating coffee jelly. It

is ideal for finishing a meal on a hot afternoon or for replenishing on the

middle of the day.

4.2 Size of the Business

The company will set a capital amounting to Php 2000 due to the

fact that it began as a small business. Savory Sweets is established by 8

individuals that serve as both the entrepreneurs and employees.

4.3 Mission Statement and Core Values

Savory Sweets’ mission is to provide a diverse range of products

that will give the customers new eating experiences. Our enterprise’s

objective is to showcase how creative and innovative the Filipinos are

when it comes to food, as well. Additionally, this business shall help the

entrepreneurs grow. Not only that, but it is also our goal to allot a

rewarding revenue to the whole group.

As for the core values, it is essentially important for the employees

and entrepreneurs to have:

 1. Commitment

2. Innovation and Creativity

3. Respect

4. Passion and Perseverance

5. Reliabiliyy

6. Open – mindedness

7. Honesty

4.4 Location of the Business and its Major Physical Assets

Savory Sweets is located bar located along Rizal Avenue, Poblacion 18

in Batangas City.

The city of Batangas is a first class component city and the capital

of the Batangas province. According to the Philippine Statistics Authority

(PSA), the projected population of Batangas City for year 2016 is 346,756

with a population growth rate of 2.13%. Among other cities in the province,

it is the largest in terms of land area and one of the fastest urbanizing

cities.

4.5 Background of the Business Owners/Entrepreneurs

 The background of the entrepreneurs and employees are further

discussed in the curriculum vitae located on the succeeding pages.

VII. Marketing Plan

7.1 Pricing

Savory snack Vanilla Jelly is a jelly dessert flavored with sweetened milk.

The thing about making milk as the primary ingredient for jelly instead of

chocolate is to offer a unique product to the people. Cost -based pricing is

important if you are starting a business, since it sets prices that cover the

cost of production and provide enough profit margin to the firm to earn its target

rate of return. Fifty percent (50%) mark-up is used for this business.7.2

Distribution

Savory sweets' Lacocoa Jell

Direct Material Cost for Lacocoa Jell

Raw Materials Price (PHP) Estimated total Cost per piece
input (product) (PHP)
Cocoa Powder 09.00 32 0.28
Chocolate Chips 20.00 0.63
White Sugar 20.00 0.63
Powdered 21.00 0.66
Gulaman
Condensed Milk 106.00 3.31
Plastic cup 42.00 1.31
container
Total Cost: 6.82

Overhead Cost for Lacocoa Jelly

Estimated total Cost per piece
Utility Price (PHP)
output (product) (PHP)
LPG Solane 10.00 32 0.31
Total: 0.31
Fixed Cost for Lacocoa Jelly
Estimated total Cost per piece
Price (PHP)
output (product) (PHP)
Direct Labor 100.00 32 3.13
Rent Expense 15.00 32 0.47
Total: 3.60

Total cost per product (PHP) = Direct material cost + Overhead cost + Fixed
Cost
= 6.82+ 0.31 + 3.60
= 10.73

Marked-up price (PHP) = (Total cost per product) (100% + Markup %)

= 10.73 (1 + 0.70)
= 18.241
Cost per piece: Php 18.00
Total Sales: Php 18.00 * 32 pieces = Php 576.00

Estimated profit per product (PHP) = Markep-up price – Total cost per
product
= 18.00 – 10.73
= 7.27
Total Profit: 7.27 * 32 pieces = 232.64

Savory sweets' Lacocoa Jell will be sold for Php 18.00 per container,
with an estimated profit of Php 7.27.

7.2 Distribution Strategy

The Savory snack's Vanilla Jelly shop is located along Rizal Avenue,
Poblacion 18 in Batangas City. The shop was visible to a lot of costumers
especially to the students. The Vanilla Jelly is perfect for this hot season. It will give
the costumers a new flavor and taste that they will love besides it is budget friendly.
Alse, there are distribution channels that will be considered in selling the products.

Retail
Retail is the process of selling consumer goods or services to
customers through multiple channels of distribution to earn a profit. With the
help of the retailers, the business would expand.
Wholesalers
The wholesalers are the middleman. They distribute thr products to the
retailers.
Direct Selling
Savory snack's Vanilla Jelly will also be sold direct to the costumers. It
can help the business because it is less in transaction. The price per
container of the product is Php 12.00 and the company can assure the
 consumers that our product is worth to taste.

7.3 Promotion

With the help of these promoting strategies (e.g signage, social media,
flyers), the product might be well-known.

Signage
A creative, attractive sign can help the business stand apart from the
competition. The signage will be put over the entrance of the shop.

Social Media
Almost every person has a social media account, so the company use
social media to advertise about the product. The consumers will be updated
with the company's product with the help of social media mainly, Facebook,
Twitter, and Instagram.

Flyers
The company will print brochures and flyers for creating awareness
about our product in the market.

Word of Mouth
By building trust with the costumers who is loyal, the company will used
this method to grow the business.

Website
The consumers can contact us with the following social media accounts.
o Facebook page: Savory snack's Vanilla Jelly Batangas
o Twitter username: @VanillaJellyBTG
o Instagram username: @VanillaJellyBTG
o Email: vanillajellyBTG@gmail.com
 VIII. Organizational Plan

8.1 Company History

Lacocoa jelly was developed on February 14, 2018 by two

businessmen Raphael and Kenneth, who visited Japan and England with
his team and soon brought a vision of changing the way people taste brew
jelly. Brew jelly was promoted as a healthier alternative to hot coffee, as it
absorbed excess acid in the stomach, but it never gained widespread
popularity. The company developed a unique chocolate as a broth, while the
jelly has been replaced with the milk which targeted not only the man's taste
but also the woman's taste. As the company change the way it taste, it
appealed to man and woman and it rose in popularity along with cafe and
pastry businesses. Lacocoa jelly has pioneered its way through cafe and
pastry businesses through multiple times of its existence. It believes in giving
the target market the satisfaction they deserve and the creativity in order to
produce interesting and delicious products for society.

8.2 Company Ownership

Savory Sweets is a business that was established in the year 2018. It

was is located along Rizal Avenue, Poblacion 18 in Batangas City. This
is owned by seven (7) businessman and currently working as a team. A
partnership has no limits on number of partners. It also has low costing
because of the limited amount of capital. With this, the businessmen decides
that everyone is general partners to have equal control. Having an equal
distribution of work will result to a successful business.

8.3 Management Summary

The company has two general managers which has expertice in

business. The company was committed to provide quality Lacocoa Jell at a
reasonable price. The company will pursue this business with honesty,
fairness, and integrity. It will also build and maintain a good relationship with
the costumers, employees and to everyone that is a member of Savory
Sweets.
8.4 Organizational Chart

Savory Sweets' Lacocoa Jell

Kenneth F. Montoya Raphael R. Sanvictores

General Manager I General Manager II

Christian A. Blanco John Jearome B. Alvarez

Head of Finance Human Resource Director

Nelson Aldwin E. De Guzman Andrea Christelle D. Plata Asiah Chelsea P. Tusing

Production Manager Marketing Manager Operation Manager
8.5 Management Team

Name Duties and Experiences NOTABLE EDUCATION

Responsibilities ACCOMPLISHMENTS
Raphael R. - Responsible for the Hotel General - Time Magazine's Most University of
Sanvictores overall operation of Manager of Influencial People (2015) the
the Savory snack's Megaworld Philippines,
Vanilla Jelly. Corporation - Business Management College of
- Decides and for 8 years. Competition Winner Business
Analyze the (2015) Administration
problems in the
business. - Businessman of the year
- Understand (2016)
recruitment and
selection, giving him
the skills to judge
potential candidates
for hiring.

Kenneth F. - overseeing all Account - Businessman of the year University of

Montoya administrative Executive of (2014) Santo
functions in your JR&R Thomas,
Distribution - Employee of the year of College of
business. Inc. for 11 JR&R Distribution Inc. Commerse
- delegates years. (2017) and Business
Administration
administrative tasks,
such as accounting,
paperwork and
payroll

Christian A. Forecast monthly, Finance University of

Blanco quarterly and annual Director of - 27th National Asia and
results Vanguard Competition for Business Pacific
- Approve or reject Hotels for 5 Management Winner
budgets years (Champion)(2014)

- Conduct risk
management
- Evaluate and
decide on
investments

John Jearome B. - Promotes and HR Director of - Business Management Far Eastern

Alvarez implements human Amaia Homes Competition Winner University,
resource values by for 5 years. (2013) BSBA major in
planning and Business
 managing human Management
resources programs;
directing staff.
- Develops human
resources operations
financial strategies
by estimating,
forecasting, and
anticipating
requirements,
trends, and
variances.
Nelson Aldwin E. - Planning and Production - 27th National University of
De Guzman organizing Supervisor of Competition for Business Asia and
Sagass st
Management Winner (1 Pacific
production
Consulting for placer) (2014)
schedules 8 years.
- assessing project
and resource
requirements
- estimating,
negotiating and
agreeing budgets
and timescales with
clients and
managers
Andrea Christelle - Manages the Retail officer - Employee of two Far Eastern
D. Plata marketing of the in SM consecutive year University,
business and Foundation (2009,2010) BSBA major in
product. for 8 years Marketing
- Focused, detail- Management
oriented, and very
conscientious of
meeting budget
restraints and
timelines.
Asiah Chelsea P. - plans, oversees Digital - Employee of the decade De La Salle
Tusing and smooths Marketing of SM Supermalls University –
communication. Manager of RVR COB
- organization is SM - Businesswoman of the
running as well as it Supermalls year (2009)
possibly can, with a for 12 years
smooth efficient
service that meets
the expectations and
needs of customers
and clients.
 IX. Financial Plan

9.1 Assumptions
The product per piece is Php12.00

A total of one stall are located at Batangas State University

Stall has 7 employees

9.2 Start-up costs

Total start-up costs will be Php228 of which will be contributed by the owners of the stall.

Table 8.1 Start-up Costs

Start-Up Expenses Amount

2 sachet ng powdered gulaman Php 21.00 (Php10.50 each)

1/4 kg white sugar Php20.00

2 can of condensed milk Php106.00 (Php 53.00 each)

125g cocoa powder Php9.00

125g chocolate chips Php20.00

32 plasticbcontainers Php42.00

LPG Usage Php10.00

Total Start-Up Costs Php228

Table 8.2 Operating Budget for the First Three Months

Expenses January February March

Salaries 10500 10500 10500
Rent 8000 8000 8000
Utilities 15000 15000 15000
Sale expenses 6840 6840 6840
Insurance 1000 1000 1000
Depreciation 2000 2000 2000
Total
Expenses 43340 43340 43340
  Projected income statement summarizes the profit (or loss)
 Cost of goods sold: (70%)
 Gros Margin: (60%)
Table 8.3 Projected Income Statement, First Year by Month (in thousand pesos)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Sales 115 117 118 126 86 108 122 104 126 118 108 180 1428
Less: Cost of goods
sold 104 78 87 75 79 88 76 90 87 80 130 1072
Gross margin 17 13 40 39 11 29 34 28 36 31 28 50 356
Operating Expenses
Salaries 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 126
Rent 8 8 8 8 8 8 8 8 8 8 8 8 96
Utilities 15 15 15 15 15 15 15 15 15 15 15 15 180
Sales Expenses 10 10 10 10 10 10 10 10 10 10 10 10 120
Insurance 1 1 1 1 1 1 1 1 1 1 1 1 12
Depreciation 2 2 2 2 2 2 2 2 2 2 2 2 24
Total Operating
Expenses 46.5 46.5 46.5 46.5 46.5 46.5 46.5 46.5 46.5 46.5 46.5 46.5 558
Net profit -29.8 -33.5 -6.5 -7.5 -35.5 -17.5 -12.5 -18.5 -10.5 -15.5 -18.5 3.5 -202.3

 Projected cash flow

The statement of cash flow shows the incoming and outgoing cash of the business.

Table 8.4 Projected Income Statement, First Three Years (in thousand pesos)

Year 1 % Year 2 % Year 3 %

Sales 3402 100 3742.2 100 4116.42 100
Cost of Goods sold 1360.8 40 1496.88 40 1646.568 40
Gross Margin 2041.2 60 2245.32 60 2469.852 60
Operating Expenses
Salaries 540 9.28 648 10.12 777.6 11.04
Rent 360 6.18 360 5.62 360 5.11
Utilities 180 3.09 180 2.81 180 2.56
Sales Expenses 120 2.06 132 2.06 132 1.87
Insurance 12 0.21 12 0.19 12 0.17
Depreciation 24 0.41 24 0.37 24 0.34
Total Operating
Expenses 1,236 21.23 1356 21.18 1485.6 21.09
Net profit 805.2 13.83 889.32 13.89 984.252 13.97

Table. 8.5 Projected Balance Sheet, as of End of First Year (in pesos)

ASSETS
Current Assets
Cash 560000
Accounts receivable 240000
Inventories
Total current assets 800000
Fixed assets
 Equipment 30000
Loss: Depreciation 2000
Total fixed assets 28000
Total Assets 828000
LIABILITIES AND OWNER'S
EQUITY
Current Liabilities
Accounts payable 60000
Accured expenses 150000
Total current liabilities 210000
Long-term liabilities
Long-term debt 50000
Total-long term liabilities 50000
Shareholders' equity
Retained Earnings 568000
Total Shareholders' equity 568000
Total liabilities and shareholders'
equity 828000

Table 8.6 Cash Flow

Steps Calculations Results

Cash flow from operating
activities
1. Take net profit (loss) from
the income statement PHP 805,200 PHP 805,200
2. Add depreciation
PHP 805,200 - PHP 24,000 PHP 781,200
3. Add increase (+) or
decrease (-) in accounts
receivable PHP 781,200 + PHP 240,000 PHP 1,021,200
4. Add increase (+) or
decrease (-) in inventory
5. Add increase (+) or
decrease in prepaid expenses PHP 1,021,200 + (-PHP
(e.g., insurance) 12,000) PHP 1,009,200
6. Add increase (+) or
decrease (-) in accounts
payable PHP 1,009,200 + (-PHP
60,000)
7. Subtract capital
expenditures (-) PHP 1,009,200 -PHP 20,000 PHP 989,200
8. Subtract debt payments (-)
PHP 989,200 - PHP 50,000 PHP 939,200
9. Subtract dividends paid (-) PHP 939,200 - PHP 20,000 PHP 919,200
PHP 919,200 + PHP
10. Add sale of stock (+) 3,402,000 PHP 4,321,200
Net cash flow PHP 4,321,200