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SPAGHETTI
Title Page
KAMARUDDEN P. AMGUIAD
ABDULSALAM P. MAMADLA
NORHAN A. SHARIFFUSMAN
SEPTEMBER 2017
CHAPTER I
INTRODUCTION
Nowadays, many fast foods, cafe, and restaurants are serving the same
kind of food, although different taste and style but what attracts them most is the
uniqueness of the food. Filipinos are wise when it comes to food that they eat
and mostly they are very ideal in looking for a place where they can be
famous Filipino cuisine that uses many version of sauce with lots of meat
ingredients. It is often served during kids birthday parties and even in any kind of
parties. We Filipino had variety style in making spaghetti dish. Spaghetti are
usually done with pasta and spaghetti sauce. Tambo is kindly different with
bamboo shoot which is considered as healthy way of losing weight. The benefits
came from the bamboo shoots are two times effectively controls cholesterol
compared to the original pasta and thats whats more interesting for this food.
Spaghetti Tambo is good for health and can sustain your energy. We often
know that kids are hard to get when it comes to eating vegetables and this kind
of food suits these children and even adults which serves as a healthy diet. This
type of spaghetti dish is very easy to cook and what more exiting is its unique
delicious taste.
Over the past couple of years, people becoming more conscious of
deliveries down to healthier restaurant offerings and everything plant based and
gluten free almost everyone has tried out healthy food fads. There were also a
lot of wellness centers that have started offering juice cleansing retreats and
and more people usually ask for healthy options when dining, and business
owners are catching on the trend and have started to put up healthy fast food
joints. In Manila, there are so many healthy fast food restaurants popping up in
almost every corner, making the fast food competition a little tougher for your
3,000 Filipino homes in urban and rural areas across the country for a period of
two years, food categories strongly associated with healthier food choice
Though gradual and slow, there are already some notable shifts in the
and wellness, which is a key insight that brands, can leverage and focus
marketing efforts on when introducing their food and beverage products. With
summer just around the corner and the fitness trend booming, brands that can
contribute to the health goals and complement the healthy lifestyles of this
emerging market will have a higher chance of getting into their shopping
health. It is a diet that is able to satisfy ones energy and nutrient needs for
proper body functions, growth and development, daily activities and maintenance
of health, keeping well within ones caloric needs. Hence, it takes into
Nations, a healthy diet: a. includes a variety of foods from different food groups;
b. meets the individual needs for calories and nutrients; c. is safe, with no risk
acceptable; and e. is available and sufficient each day and all year round.
diet emphasizes vegetables, fruits, whole grains, root crops, fat-free or low fat
milk, lean meats, poultry, fish, egg, beans and nuts. It is also low in saturated
fats, trans-fats, cholesterol, sodium and added sugars. A healthy diet is also
Variety - refers to eating different kinds of food from the different food groups
every day. No single food provides all the nutrients in proper amounts needed by
the body; therefore, a wide selection of food is vital to obtaining a healthy diet
and achieving good nutrition. c. Moderation- refers to eating the right proportions
of food that is, not consuming too much or too little as compared with what the
For example, a certain amount of fiber is good for digestion, but too little intake of
fiber may increase the risk for constipation, heart disease and weight gain. On
the other hand, too much fiber may lead to certain nutrient losses. A healthy diet
also provides just enough amounts of energy needed for ones daily activities
weight. Energy requirements differ from person to person and energy provided
poor and are high in saturated fats, trans fats, refined carbohydrates or sodium.
diet. An unhealthy diet leads to poor nutrition and is one of the major risk factors
fruit and vegetable intake is among the top 10 risk factors contributing to
mortality, according to evidence presented in the 2003 World Health Report. The
WHO estimates that 1.7 million deaths worldwide are attributable to low fruit and
heart disease deaths and about 9% of stroke deaths worldwide. b. High sodium
and low potassium consumption. Sodium found in food is either naturally present
or added during processing or cooking. It can be found in table salt, baking soda
or baking powder, monosodium glutamate, cured meat, soy sauce and other
miscellaneous food items and processed foods. High sodium consumption can
be defined as consuming more than two grams of sodium per day, which is
potassium intake (less than 3.5 grams per day), this contributes to high blood
pressure and increases the risk of heart disease and stroke. High sodium intake
trans fatty acids and saturated fats. Fats, in general, are concentrated sources of
energy and excessive consumption of fats may lead to obesity. However, not all
fats are the same, and there is increasing evidence that the type of fat in the diet
has important effects on health and may be more important to health than the
total amount of fat in the diet. High consumption of saturated fats and trans fatty
acids increases risk for heart disease by raising low density lipoprotein (LDL)
partially hydrogenated oils, may also contribute to other health problems, such
as diabetes. Saturated fats occur naturally in many foods, the majority of which
come mainly from animal sources like meat and dairy products.
On the other hand, trans fats are present in margarine, shortening, other
solid fats and in commercially fried and baked foods, such as biscuits, cakes,
donuts and chips. d. High free sugar intake. Free sugars include those added to
naturally present in honey, syrups, fruit juices and fruit juice concentrates. There
is increasing concern that free sugar intake, particularly in the form of sugar
sweetened beverages, increases overall energy intake and may even reduce the
intake of foods containing more nutritionally adequate calories. This can lead to
an unhealthy diet, weight gain and increased risk to NCDs. Another concern is
the association between intake of free sugars and dental caries. Dental diseases
are the most prevalent NCDs globally and cause pain, anxiety, functional
(www.nnc.gov.ph)
CHAPTER II
THE INDUSTRY
There has been a shift in the dietary pattern of Filipinos in terms of quality
and quantity over the years as seen in the succeeding table. The typical diet
of meats and eggs has also increased. However, the consumption of vegetables
and fruits has continued to decline. Per capita consumption of fruits and
vegetables is only 41 grams and 114 grams per capita per day, respectively, or a
total of 155 grams per day. The World Health Organization recommends the
energy requirement and that only a small proportion of households met the
Survey conducted in the Philippines in 2011 showed that among students aged
13-15 who participated in the survey, 42% usually drank carbonated soft drinks
one or more times per day during the past 30 days. The Nielsen Shopper Trends
Report in 2014 showed that there was a 13% decline in the monthly grocery
eating at fast food restaurants at least once a week. Convenience stores are also
catering to the increasing demand for convenience. In the 2016 Global Ingredient
and Out-of-Home Dining Trends Report of Nielsen, it was noted that ice cream
Pedro, Benavides and Barba (2006) reported that the changes in the
and fast foods; (c) increased frequency of eating away from home; (d) use of
Health attributes strongly influence the foods consumers buy, but not all
attributes are equally important across the globe. There are notable differences
in both the absolute importance of attributes (the percentage who said it is very
important) and the relative importance (the order of importance within the region)
mirrors the global averages, with a few exceptions. The desire for sustainably
strongly positioned for growth. Forty percent of global respondents say they plan
to buy more fruit (41%) and vegetables (39%) in the next six months. In addition,
one-quarter plan to buy more fish and seafood (25%), yogurt (24%) and water
(23%), and one-fifth plan to buy more nuts and seeds (22%), cereal (20%), juices
retailers that sell a wide variety of health foods. The percentage is even higher in
Younger consumers are also more likely to shop at specialty retailers. 69% of
turn to new outlets, manufacturers must ensure their products are available to
guidance for consumers aspiring to healthier lives, offering healthy eating ideas
(www.nielsen.com)
messaging. Knowledge of these factors can help companies who market healthy
insights. These success factors were called nutritional evidence and consumer
COMPETITIVE ANALYSIS
Competitors Analysis
The table 1 shows the four major competitors of Kawayan Spaghetti which
are the Ice and Fries Caf Bar, Beaux Meals n Snacks, Food Stuff, and Goldy
Foods. These four major players are the indirect competitors of Kawayan
new way of introducing a well-known cuisine for Filipinos. With the current shift of
able to catch these customers. Also one of the edges of Kawayan Spaghetti is
SWOT Analysis
Strengths
Weaknesses
Opportunities
Emerging markets.
Threats
customer.
Uncertainty of acceptance in the market.
The target market of the business will be the people of Tacurong City.
their products and the households are the main target of Kawayan Spaghetti.
Demand Analysis
Product
2012 1,885,200
2013 2,036,016
2014 2,137,817
2015 2,266,086
2016 2,402,051
Statistics Authority about the total population of Tacurong City. The researchers
came up with the computations by the data gathered from the respondents in
Product
2017 2,524,566
2018 2,650,943
2019 2,777,320
2020 2,903,697
2021 3,030,074
based on the resulted historical demand computed using Statistical Straight Line
Method.
Supply Analysis
Product Variance
1,131,120
2012
1,323,410
2013
2014 1,453,716
2015 1,540,938
2016 1,633,394
Table 4 shows that historical supply of spaghetti in Tacurong City, Sultan
Kudarat. The data was given by the three competitor base on their annual sales.
production, technology and price of other products. Table 4 shows that projected
the data given by the three competitors by using Statistical Straight Line Method.
Market Gap
Per Plate
The researchers came up with the market gap by deducting the projected
supply from projected demand. The percentage of target market was computed
6% 4%
Ice and Fries
33%
Beaux Meals 'n
Snacks
Food Stuff
35% Goldy Foods
Unserved Demand
22%
supply from projected demand. The percentage of target market in per plate
which is 33% was computed by dividing the market gap by the historical demand.
Ice and Fries got 6%, Beaux Meals n Snacks has a market share of 4%,
MARKETING PLAN
Product
usage in utilizing their juvenile shoots as popular food items. The presence of
high content of protein, amino acids, minerals, fibre, carbohydrates, and low fat
makes the bamboo shoot one of the widely acclaimed nutrient rich food items.
athletic energy, and longevity to regular consumers. Bamboos shoots are popular
in Asiatic countries and form a major component of their traditional cuisines. (P.
795003, India)
menu. It is still the same spaghetti that Filipinos are used to yet the pasta is
made up of bamboo shoots. The benefits from the bamboo shoots will be
normal spaghetti are employed in making the product. The only difference is the
Target Market
Kawayan spaghetti targets ages 7 years old and above specially those obese
people one that want to lose weights and at the same time satisfying their
stomach.
Logo
Exhibit I. Logo
fascinate the eye of customers who love to eat unique recipes of food. The reeds
of bamboo also show the resiliency of the entity in facing the consequences in
entering the market. Being new in the industry the logo wants to entice
consumers to try the newest image of Filipino spaghetti. Must try the unique
style is also included in the logo to provide consumers inkling about what does
The entity shall be known as Kawayan Spaghetti to clearly state that the
signifies the unique way of promoting healthy food yet in a delicious way.
Spaghetti is the most beloved food of Filipinos thus it is only just to provide it a
Product Positioning
The location is suitable for the entity since it is accessible to main roads making it
easier for distribution. The area is well ventilated and the sanitation can be easily
maintained. As an entity who shall be providing food it is only just to find location
The entity shall employ cost plus markup strategy to determine the
price of the product. Table 5 shows the cost of producing 12 plates of Kawayan
Spagehtti.
Direct Materials
Bamboo Shoots 3 Pck 25.00 pck 75.00
Beef 0.25 Kg 180.00 kg 45.00
Spaghetti sauce 0.5 Pck 58.00 kg 29.00
Milk (Condense) 1 Pck 42.00 pck 42.00
Cheese 1 Pck 48.00 pck 48.00
Mayonnaise 0.25 Kg 150.00 kg 37.50
Hotdog 0.5 Pcs 20.00 pck 10.00
Carrots 0.3 Pcs 40.00 kg 12.00
Onions 0.06 G 50.00 kg 3.00
Garlic 0.04 G 120.00 kg 6.00
Cooking oil 0.03 G 60.00 kg 1.80
Salt 0.01 G 10.00 kg 0.1
Total Direct Materials 309.4
Manufacturing OH 0.00
Thus from the above table we can compute for the cost per plate which is
Php 25.78. The entity wants to attain a contribution margin of more than 40%,
therefore we can say that the entity can set the selling price at Php 45.00.
Distribution Strategy
delivering the products to different refreshments stores in the market. The entity
strategy is useful for the entity since it is the only entity in the area which
Marketing Budget
Total P2,749
Table 8 shows the monthly marketing budget. The first column shows the shows
the promotional methods, the second row shows the activities, the third row
shows the materials used by the company to market the product. The methods
used are Social Networking Site, flyers, tarpaulins and self-promotion. The total
cost of Marketing budget for the first month is worth P2,749.00 containing Pocket
Wi-Fi which is worth P999.00 and 50 pieces of flyers that cost P400.00 and 3
ORGANIZATIONAL PLAN
Form of Ownership
business organization in which two or more individual pool money, skills and
also known as partners may enter into agreements without the presence of other
partners so long that it is for the welfare of the entity. Compared to sole
and Norhan A. Shariffusman. They will be sharing their capital equally and all
PARTNERS
MANAGER
This figure shows the line of command in the entity. The manager shall
directly report to the partners who own the entity. The cashier and security guard
Hiring Process
The first step is the posting and announcing of vacancies for employment.
skills, education, experience or other qualifications needed for the job. Separate
those applicants into who will be interviewed and who will be retained on file for a
period of time. Testing applicants will be the next step and generally involves
testing applicants for job skills or knowledge to determine whether they are
qualified for the position. The fourth process is to interview the selected
applicants. Interview is a meeting between the job seeker and the employer to
evaluate whether the candidate has the right qualifications for the job. Once the
interviews have been completed, applicants will be selected on the basis of the
the qualified applicant is chosen, background checks and reference checks are
applicant's credit score, criminal record, education record and military record.
And the last step is to send hired applicants for orientation and training.
Step 1: Publication/
Announcement of
Vacancies
Step 4: Interview
Selected Applicants
Step 5: Choose
Applicants based on
Pre-determined
Selection Criteria
Step 6: Perform
Background and
Reference Check
The Kawayan Spaghetti is a new image for the most loved pasta cuisine of every
Filipino. It is mainly made up of bamboo shoot, which is considered as one of the most
widely used crops in the Philippines. This product will not only provide customers with a
new variety of pasta cuisine but also a healthy way of enjoying spaghetti. Most of the
food establishments in the area do not provide healthy choices of food, and if there is it
is very expensive. Kawayan Spaghetti is a new product in the market that will provide
customers with cheap and healthy food. Also it will also use local crop bamboo
shoots, thus rebranding it as not only for viand but also as a fine cuisine. The business
has this product not only to make its customers happy but also to inculcate health
awareness.
The color of Kawayan Spaghetti is the same with pasta based spaghetti since the
entity will not use any coloring the pasta (bamboo shoots) is most likely to provide a
creamy white appearance. The texture is al dente just how other pasta is being cooked.
It smells and tastes sweet which appeals the Filipino taste buds. Kawayan Spaghetti
helps control bad cholesterol and strengthens the immune system, also based on
studies it is considered as a medicinal crop since it can reduce the risk of cancer.
Purchasing Workflow
Figure 4 shows the purchasing workflow of the entity. The Raw Materials which
are the bamboo shoots will be acquired from the local market. The acquired suppliers
from the local market shall regularly deliver freshly picked bamboo shoots to the entity.
The entity will have the raw materials from the market because it is abundant and to
assure that there will be a sustainable source of raw materials, the entity shall forge 5
Service Workflow
The Figure 5 shows the distribution of the products. Customers and contracted
retailers shall place their orders in the cashier who shall be taking the orders and
payments. To avoid too much production the cook shall only process the number of
ordered spaghetti in the cooking station. The cooked spaghetti shall be forwarded to the
preparation area where it shall be packed according to orders. Then it shall be delivered
strategically located at the center of the city near schools, and other establishments this
is to assure that there will be influx of customers. Since the entity shall be dealing with
Table 10 shows the list of machineries and equipment that will be used for
production. The needed machineries that will be used by entity are electric fan,
generator, LPG tank with burner and freezer. The equipment will be kitchen scale, and
gas stoves. The total cost for machineries is Php 24, 585.00 and for the equipment is
Php. 14, 260.10. The total amount budgeted for Machineries and equipment is Php. 38,
845.10
The total amount to be incurred by the entity for the kitchen tools is Php 41,310.15 and
the amount for kitchen utensils is Php 2,714.75. The total amount is for kitchen and
of an asset over its useful life. The objective of depreciation is to have each period
benefiting from the use of the asset bear an equitable share of the asset cost.
The method used in solving the depreciation is the straight-line method where
economic benefits from the assets are allocated evenly over the useful life of the assets.
entity. The total cost of machineries is Php 24, 585 and the total cost of equipment Php
14, 260.10. The total depreciation for machineries from year 1 to 3 is Php 5,791.25 and
on its 4th and 5th year it will be Php 4,091.25 abd Php 3,120 respectively. On the other
hand equipments depreciation for the 1st year to 4th year is Php. 2,786.73 and Php.
Table 13 shows the schedule for depreciation of kitchen tools and utensils. The
total cost of kitchen tools and utensils is Php 41,310.15 and Php 2,714.75 respectively.
The amount of depreciation for tools is Php 8,262.03 from 1 st to 5th year and for utensils
Table 14 shows the schedule for monthly supplies that will be purchased by
entity for its operations. The kitchen supply amounts to Php 585 and office supplies
Table 15 shows the annual budget for supplies. It is budgeted to have an equal monthly supplies, thus from
January to December the entity shall be incurring Php 846 of supplies. This is an equivalent of Php 10,152 every year.
Particulars Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total
Kitchen
Supplies
Dishwashing 225 225 225 225 225 225 225 225 225 225 225 225 2,700
Liquid
Sponge 240 240 240 240 240 240 240 240 240 240 240 240 2,880
Steel Wool 120 120 120 120 120 120 120 120 120 120 120 120 1,440
Subtotal 585 585 585 585 585 585 585 585 585 585 585 585 7,020
Office
Supplies
Pens 59.75 59.75 59.75 59.75 59.75 59.75 59.75 59.75 59.75 59.75 59.75 59.75 717
Receipts 81.25 81.25 81.25 81.25 81.25 81.25 81.25 81.25 81.25 81.25 81.25 81.25 975
Journals 45 45 45 45 45 45 45 45 45 45 45 45 540
Logbook 75 75 75 75 75 75 75 75 75 75 75 75 900
Subtotal 261 261 261 261 261 261 261 261 261 261 261 261 3,132
Total 846 846 846 846 846 846 846 846 846 846 846 846 10,152
Inventory
corresponding quantities and costs. The monthly budget for inventory is Php 7,167.
Table 17 shows the annual budget for inventories. It is assumed that there will be no peak season for Kawayan
Particulars Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total
Bamboo 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000
Shoots
Beef 900 900 900 900 900 900 900 900 900 900 900 900 10,800
Spaghetti 580 580 580 580 580 580 580 580 580 580 580 580 6,960
Sauce
Milk 840 840 840 840 840 840 840 840 840 840 840 840 10,080
(Condense)
Cheese 960 960 960 960 960 960 960 960 960 960 960 960 11,520
Mayonnaise 750 750 750 750 750 750 750 750 750 750 750 750 9,000
Hotdog 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
Carrots 240 240 240 240 240 240 240 240 240 240 240 240 2,880
Onions 60 60 60 60 60 60 60 60 60 60 60 60 720
Garlic 96 96 96 96 96 96 96 96 96 96 96 96 1,152
Cooking Oil 36 36 36 36 36 36 36 36 36 36 36 36 432
Salt 5 5 5 5 5 5 5 5 5 5 5 5 60
Total 7,167 7,167 7,167 7,167 7,167 7,167 7,167 7,167 7,167 7,167 7,167 7,167 86,004
Installation of Water & Electricity
Table 18 shows the cost for installation of water and electricity. As per provided
Php 7,250 and for water installation amounts to Php 4,900. Thus the total cost incurred
Transportation Cost
since the entity already forged contracts with the suppliers. The suppliers will be
delivering these materials to the entity periodically based on the practice of the entity
Utility
Table 19 illustrates the monthly costs for water and electricity of the entity which
Electricity 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,350 28,200
Water 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 19,200
Total 3,950 3,950 3,950 3,950 3,950 3,950 3,950 3,950 3,950 3,950 3,950 3,950 47,400
Repair and Maintenance
Table 20 shows the cost for monthly repairs and maintenance of the entity. For
the first quarter of operation it is estimated that the entity will incur Php 250 per month
and for the succeeding quarters it will be Php 300 per month.
Repairs 250 250 250 300 300 300 300 300 300 300 300 300 3,450
Total 250 250 250 300 300 300 300 300 300 300 300 300 3,450
Waste Disposal
Table 21 shows the schedule of cost for waste disposal which amounts to Php
45 per month as per provided by the local government. The annual cost for waste
Particulars Cost/Month
In Php
January 45
February 45
March 45
April 45
May 45
June 45
July 45
August 45
September 45
October 45
November 45
December 45
Total 540
Sales Forecast
Table 22 shows the projected sales forecast for the Kawayan Spaghetti with a
Cost of Sales
Table 23 shows the monthly cost per unit amounting Php 27.78 per pack.
Particula Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
r t
Kawayan
Spaghett
i
Cost per 27.7 27.7 27.7 27.7 27.7 27.7 27.7 27.7 27.7 27.7 27.7 27.7
Unit 8 8 8 8 8 8 8 8 8 8 8 8
Number 640 640 640 640 640 640 640 640 640 640 640 640 76,800
of Units 0 0 0 0 0 0 0 0 0 0 0 0
Total 177, 177, 177, 177, 177, 177, 177, 177, 177, 177, 177, 177, 2,133,504
Cost of 792 792 792 792 792 792 792 792 792 792 792 792
Sales
Chapter VII
FINANCIAL PLAN
Sources of Financing
Due to limited capital requirement the needed capital shall be financed directly by
Project Cost
Kawayan Spaghetti
Project Cost (in Php)
Working Capital
Inventory 7,167
Salaries and wages 21,000
Machineries and Equipment 38,845.10
Kitchen Supplies 585
Tools and
Utensils 44,024.90
Office Supplies 261
Permits and Licenses 13,950
Prepaid Advertising 2,749
Rent 5,000
Utilities 3,950
Total Working Capital 137,532
Total 132,532
Contingency (5%) 6,876.6
Total Project Cost P 144,408.6
Summary of Basic Financial Assumptions
b. 100% of the total project cost will be coming from personal investment of
partners.
c. Partners agrees not to withdraw cash from the entity until the end of 5 years.
d. The depreciation method that the business will use is straight line method.
e. The useful life of the machinery and equipment is 3-5 years with no salvage
value.
f. The sales price as well as the cost per unit of the raw materials increases by 2%
every years.
h. Employee benefits will increase depending on the salary rates given by DOLE
every year.
All assets are financed by the partners through their personal funds. Also the
entity is operating on a cash basis thus there are no liabilities incurred. The total
owners equity for the year 2017 to 2021 are the same with the assets, it also
Liabilities
Current Liabilities
Accounts Payable
Total Current Liabilities
Non-Current Liabilities
Notes Payable
Total Non-Current Liabilities
Partner's Equity
Kamarudden, A Php50,000.00 Php245,171.85 Php447,821.24 Php654,694.30 Php865,875.52 Php1,081,451.06
Mamadla, A Php50,000.00 Php245,171.85 Php447,821.24 Php654,694.30 Php865,875.52 Php1,081,451.06
Shariffusman, N Php50,000.00 Php245,171.85 Php447,821.24 Php654,694.30 Php865,875.52 Php1,081,451.06
Total Partner's Equity Php150,000.00 Php735,515.56 Php1,343,463.71 Php1,964,082.91 Php2,597,626.57 Php3,244,353.18
Total Liabilities and Partner's Equity Php150,000.00 Php735,515.56 Php1,343,463.71 Php1,964,082.91 Php2,597,626.57 Php3,244,353.18
Projected Statements of Financial Performance and Distribution of Profit
sales are in increasing trend as well as the gross profit for the five years of
P1,120,431.90 and P1,142,840.53 for 2017, 2018, 2019, 2020, and 2021
respectively. The net profit for the five year operations are P585,515.56,
The statements of cash flow of Kawayan Spaghetti show that from the
the sales, it helps increase the net cash of the business. The purchase of the
property, plant and equipment is only in the year 2017 and for the next four years
there are no other acquisition for the property, plant and equipment.
Cash Flow 2017 2018 2019 2020 2021
Cash Receipts
Sales Php3,456,000.00 Php3,525,120.00 Php3,595,622.40 Php3,667,534.85 Php3,740,885.54
Cash Disbursement
Cost of Goods Sold Php2,400,192.00 Php2,448,195.84 Php2,497,159.76 Php2,547,102.95 Php2,598,045.01
Internet Php11,988.00 Php12,227.76 Php12,472.32 Php12,721.76 Php12,976.20
Flyers Php1,200.00
Tarpaulin Php1,350.00
Salaries and Wages Php21,000.00 Php21,420.00 Php21,848.40 Php22,285.37 Php22,731.08
Fringe Benefits Php22,524.00 Php22,524.00 Php22,524.00 Php22,524.00 Php22,524.00
Permit and Licenses Php13,950.00 Php14,229.00 Php14,513.58 Php14,803.85 Php15,099.93
Supplies Php10,152.00 Php10,355.04 Php10,562.14 Php10,773.38 Php10,988.85
Rent Expense Php60,000.00 Php61,200.00 Php62,424.00 Php63,672.48 Php64,945.93
Utilities Php47,400.00 Php48,348.00 Php49,314.96 Php50,301.26 Php51,307.28
Repair and Maintenance Php3,450.00 Php3,519.00 Php3,589.38 Php3,661.17 Php3,734.39
Waste Disposal Php540.00 Php550.80 Php561.82 Php573.05 Php584.51
Installation of Water & Electricity Php11,750.00 Php0.00 Php0.00
Income Taxes (30%) Php250,935.24 Php260,549.21 Php265,979.66 Php271,518.71 Php277,168.55
Cash Ending Php658,685.76 Php1,280,687.11 Php1,915,359.51 Php2,562,956.37 Php3,223,736.18
Financial Statement Analyses
Analysis of Liquidity
A. Working Capital
Working Capital is a liquid resource that the management will control in the short
term. The working capital for the year 2017, 2018, 2019, 2020 and 2021 are P438,231,
respectively. The entity's working capital is constantly increasing which means that it
These two ratios are used to determine the capacity of an entity to meet its
current obligations. Since the entity has no liabilities then there is no need to present
these ratios. The assets are increasing constantly, if the entity shall acquire liabilities in
Analysis of Solvency
A. Equity Ratio
Equity ratio reflects financial strength and caution to creditors. The equity ratio for
the year 2017, 2018, 2019, 2020 and 2021 remained at 100% respectively. The higher
the equity ratio the better since all of the assets is financed by the owner that reduces
Gross profit ratio is used to assess a companys financial health and business
model by revealing the proportion of money left over from revenues after accounting for
the cost of goods sold. Meaning in 2017, 2018, 2019, 2020 and 2021 there are .31
centavos of gross profit in every peso generated by the entity on net sales.
The cost of goods sold ratio indicates the ability of the entity to control its cost of
goods sold to increase its profit. The cost of goods sold for the year 2017, 2018, 2019,
2020 and 2021 is constant at 0.61. In the year 2017, in every peso of net sales, 61% is
the cost of goods sold. The constant trend shows that the entity is doing well to maintain
its cost of goods sold without sacrificing the quality of the products offered.
The net income ratio measures profitability after considering all sales and
expenses, including the interest, and non-operating items. Kawayan Spaghettis net
profit ratio is at increasing trend which is good since it is a positive sign of profitability.
The net profit ratio for the year 2017, 2018, 20919, 2020 and 2021 is 0.17:1.
Other Performance Analysis
A. Payback Period
The payback period indicates the number of years and days to fully recover its
investment. Kawayan Spaghetti Manufacturing has 82 days to recover the cash being