Академический Документы
Профессиональный Документы
Культура Документы
Traveling is fun and exciting, or it can be stressful and boring, and the
luggage you use to tote your stuff affects that outcome. While the world is
becoming more high-tech and all the things come in handy, suitcases really
haven’t changed that much – well, except from advancements in materials
and designs.
Whether you’re planning to go to a place you haven’t been to, or simply
to spend a few days unwinding on a gorgeous beach, there is something to be
said about the thrill of packing your bags and heading to a far-off destination.
To make things easier especially when you are in a rush at an airport, the
researchers developed a smart luggage that could be the next scientific
breakthrough – an Electromagnetic Controlled Luggage (Dog Luggage). This
Smart Luggage can follow you wherever you go, has a GPS tracking device, has
an anti-theft feature and could become your power source for days.
The smart key chain that the user is using allows and activates the
luggage to follow him because of the electromagnetic chip that is installed in
the luggage. This feature can only be possible if the user is wearing or holding
the key chain. For the safety of the stuffs and the luggage itself, it is equipped
with a Global Positioning System (GPS), the polycarbonate shell used as the
main frame of the luggage is anti-cut and is water repellent. It also has designs
of road security reflective stripes so that it is visible even along the road. It has
optimal weight balance which makes the Dog Luggage stable and balanced
while it follows the user or it strolls together with the user. It has adjustable open
angles for the convenience of the user and an integrated USB charging ports
where you can charge your smart phones and laptops.
This scientific breakthrough has become possible through the power of
lithium-ion batteries which are also used in powering electric cars and
smartphones. Some airports ban smart luggage which are powered by lithium-
ion batteries because this type of battery may cause fire at the cargo area.
Because of this, our lithium-ion battery installed in the Dog Luggage is
removable, hence, it is allowed to be travelled.
Section 2
PRODUCTION PLAN
2.1 Production Process
The Dog Luggage will be assembled at the factory out of the raw materials
purchased from different direct suppliers in partnership with the company.
Step 1: Component List
The main components of the Dog Luggage are the following:
COMPONENT TYPE
Luggage - Wheeled Luggage
- thermoplastic shell(impact-resistant)
Magnetometer - Scalar
TRANSPORTATION EQUIPMENT -
Good in transporting
Deliv ery Truck 1 300,000 300,000 Isuzu Elf 2008 products
TOTAL MACHINERIES 1,116,599
The normal life of the conveyor belt which will be used in the factory warehouse
is 20 years. The fire extinguisher, the push cart heavy duty and the generator are
having useful life of 15 years. The 2nd hand delivery truck has an estimated
useful life if 8 years. Hence, the depreciation for the machineries follows:
Machineries
DEPRECIATION EXPENSE
ANNUAL
QTY UNIT PRICE TOTAL COST USEFUL LIFE DEPRECIATION 2019 2020 2021 2022 2023 2024
MANUFACTURING EQUIPMENT -
Conv eyor Belt 2 395,000 790,000 20 39,500 39,500 39,500 39,500 39,500 39,500 39,500
OTHER EQUIPMENT -
Fire Extinguisher 2 2,500 5,000 15 333 333 333 333 333 333 333
Push Cart heav y duty 1 4,799 4,799 15 320 320 320 320 320 320 320
Generator 1 16,800 16,800 15 1,120 1,120 1,120 1,120 1,120 1,120 1,120
TRANSPORTATION EQUIPMENT -
Deliv ery Truck 1 300,000 300,000 8 37,500 37,500 37,500 37,500 37,500 37,500 37,500
TOTAL EQUIPMENT AND APPLIANCES 1,116,599 78,773 78,773 78,773 78,773 78,773 78,773 78,773
I nput Vat 119,636
Equipment and Appliances(paid) 996,963
The company is on a 302-day operations on its first calendar year. Annually, the
researchers are anticipating a total of 918 production which is equivalent to
roughly 3 per day.
The planned capacity of the company’s retail store is 80 units monthly. This was
determined from the average normal capacity of the competing stores plus
32% for the spare capacity.
Computation of Normal Capacity
Normal Capacity of Competitors 3,672
Div ided by: No. of competitors 5
Normal Capacity for Dog Luggage Production 734
Add: Spare Capacity (25%) 184
Total Normal Capacity 918
After the launching of the best smart luggage in the market, the
proponents are anticipating a greater demand from the public. Since ample
number of tourists are visiting the city everyday, the researchers believe that
more and more people will know about this product and a lot more potential
customers will come our way.
Due to this, the researchers are planning to increase the future capacity
of the store by 4% annually, to cater the demand of the public. Hence, the
table below shows the future capacity of the company for the next five years
1 Used in power
generation, power
8 AWG Gauge transmission,
Silicone Wire power distribution,
Flexible Stranded telecommunication
Copper Cables s, electronics
for RC Wiring circuitry, and
countless types of
electrical
equipment.
2 Rotary electrical
machines that
DC motor converts direct
current electrical
energy into
mechanical
energy.
For the factory of the company, it will need the following manpower:
Total 8
The number of days was based on the 2019 Calendar excluding Sundays and
Holidays in the Philippines. The total annual labour cost is P 724, 800.
Factory Overhead
2019
Utilities-Factory 334,097
Repairs and Maintenance 41,220
Depreciation Expense 268,617
Supplies-Factory 22,231
I nsurance Expense 14,000
I ndirect Labor 1,060,800
Total 1,740,965
According to the data gathered from the Department of Energy, the average
electric consumption of small businesses annually is Php 222, 109.14.
The Annual depreciation expense of the building and the PPE is equal to 268,
617.
The researchers based the salary of the indirect labors from the website
www.payscale.com which gives annual average salaries of different
professionals.
MANAGEMENT TEAM
Since the partners are busy people and to avoid conflict in the
partnership, the researchers constructed an organizational chart wherein
the powers from the company is fairly segregated to all the partners. The
General manager reports to all the partners and is the one who oversees
the operation of both the factory and the retail store of the company. To
help the general manager, the researchers decided to create manager
of both the factory and the retail store to be able to increase the
effectiveness and efficiency of work.
3.3 Business Experience and Qualifications of the Entrepreneur
Basically, there are a lot of qualifications that an entrepreneur must
possesses. The entrepreneur should know how to manage money
because if you can’t manage money then you can’t manage business as
well. They should also know how to raise money. The entrepreneur should
be productive to help the business grow. They should also know how to
make entrepreneur friends because having friends will help you in your
struggles and give you much needed insight.
They should know also how to train themselves everyday. Meaning
they must try to improve themselves each day. We all know that no
business venture is a straight line to success that is why knowing how to
deal with downs and ups is essential. Lastly, the ability to focus on your
customers is much needed. Without customers, their is no business. The
entrepreneur should know what are the customer needs and wants
because they are the big factors of a business.
3.4 Pre-Operating Activities
Gantt Chart of Activities
Activity May Jun Jul Aug Sep Oct Nov Dec Jan
Conduct
Feasibility Study
Partnership
Formation
Securing Permits
Purchasing of
Materials,
Equipment and
Supplies
Recruitment,
Selection,
Hiring and
Training of
Personnel
Installation and
Test Runs of
Machine
Advertising and
Promotion
Start of Operation
Pre-operating Expenses
Item Cost
Advertising Expense 426,895
Auto and Truck Expenses 7,500
Other Expenses 91,518
HDMF Expense 10,608
Miscellaneous Expense 3,140
PHIC Expense 4,950
Rent Expense 183,600
SSS Expense 16,020
Taxes and Licenses 3,935
Supplies-Store 2, 625
Utilities-store 7,500
VAT on Importation 94,800
Travel 3,000
Total Pre-operating Expenses 856,091
Other Expenses
Other Pre-operating expenses
Organizational Activity Amount
BIR Registration Form 500
Community Tax Certificate 500
SEC Registration 4500
Legal Fee 450
Documentary Stamp 25
Depreciation Expense 19693
Business Name Registration 500
Employees Seminars and Training 10000
Renovation Expense 50000
Hiring Expense 5000
Notary Public Fee 350
Total 91,518
Advertising Expense
BREAKDOWN OF ADVERTISING EXPENSE
Projected cost per
Item Annual Quantity unit Total
PROJECT COST
Item Cost
Pre-operating Expenses 856,091
DM 1412113.5
DL 181200
OH 392848.52
OPEX 2915578.5
Machineries 1116599
Furnitures and Fixtures 50146
Factory 4203030
Land 2500000
Total 13,627,607
The partners will each contribute Php 1, 854, 601 cash each except for
one of the partners who has an investment of Php 4, 354, 601. This is due to the
partner’s donation of lot whose fair value is 2.5 million except from his
not necessary for the continued operation of the partnership. Whenever there
are instances where capital is needed, the partners will instead make additional
investment.
business so that capital is more easily available. Since all the partners will
be contributing money and one will contribute even his property, the
researchers do not see any reason for the company to loan capital from
Investing
Activities
Purchase of 14
Machineries (1,116,599)
Purchase of 15
Furnitures and (79,444)
Fix
Factory 16
(4,203,030)
Cash Flow 0 0 0
from Investing (5,399,073) -
Activities
Financing
Activities
Contribution
from Partners 11,127,607 - - -
Withdrawals -
- 600,000 (600,000) (1,200,000) (1,500,000)
Cash Flow
from 11,127,607 (600,000) (600,000) (1,200,000) (1,500,000)
financing
Activities
Cash, beg
- 6,513,635 6,606,284 7,138,540 7,490,452
Add:
Adjustments 6,513,635 92,649 532,256 351,912 499,280
Cash, end
6,513,635 6,606,284 7,138,540 7,490,452 7,989,732
Non Current
Assets
Machineries 1,116,599 1,116,599 1,116,599 1,116,599 1,116,599
Accumulated
Dep (78,773) (157,547) (236,320) (315,093) (393,866)
Furnitures and
Fixtures 79,444 79,444 79,444 79,444 79,444
Accumulated
Dep (4,692) (12,864) (21,037) (29,209) (37,381)
Factory
Building 4,203,030 4,203,030 4,203,030 4,203,030 4,203,030
Accumulated
Dep (185,152) (370,303) (555,455) (740,606) (925,758)
Land 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
Total Assets 14,144,091 13,964,643 14,224,802 14,304,617 14,531,801
LIABILITIES AND
EQUITY
Liabilities
HDMF
Payable 3,536 3,536 3,536 3,536 3,536
PHIC
Payable 1,650 1,650 1,650 1,650 1,650
SSS Payable 5,340 5,340 5,340 5,340 5,340
DM Payable 282,423 296,544 311,371 326,940 343,287
VAT Payable 442,391 488,815 539,264 594,059 653,548
Income tax
pay 0 0 95,386 156,581 216,951
Equity
Benigno,
Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
C, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
Pa, Capital 4,318,125 4,278,126 4,294,709 4,286,085 4,301,248
Pi, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
Sa, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
Sh, Capital 1,818,125 1,778,126 1,794,709 1,786,085 1,801,248
Notes:
Note 1:
Note 2:
Raw Materials - - - - - -
Beg
Add: Purchases 5,648,454.00 5,930,876.70 6,227,420.54 6,538,791.56 6,865,731.14 7,209,017.70
Raw Materials
5,648,454.00 5,930,876.70 6,227,420.54 6,538,791.56 6,865,731.14 7,209,017.70
Available for Use
Less: Raw
- - - - - -
Materials, End
Raw Materials
5,648,454.00 5,930,876.70 6,227,420.54 6,538,791.56 6,865,731.14 7,209,017.70
Used
Direct Labor 724,800.00 724,800.00 724,800.00 724,800.00 724,800.00 724,800.00
Factory
1,760,833.07 1,764,312.83 1,764,312.83 1,764,312.83 1,764,312.83 -
Overhead
Total
Manufacturing 8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Cost
Add: Work in
- - - - - -
Process, Beg
Total Goods in
8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Process
Less: Work in
- - - - - -
Process, End
Cost of Goods
8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Manufactured
Add: Finished
- - - - - -
Goods, Beg
Total Goods
8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Available for Sale
Less: Finished
- - - - - -
Goods, End
Cost of Goods
8,134,087.07 8,419,989.53 8,716,533.36 9,027,904.39 9,354,843.97 7,933,817.70
Sold
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Permit Fee on Ocction 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Provincial Fee 50 50 50 50 50 50 50
Supplies Expense
Note 10:
Total Utilities Expense 7,500.00 30,000 30,000 30,000 30,000 30,000 30,000
Note 11:
Note 12:
Note 13:
Note 14:
Note 15:
Since the researchers did not use Loan Financing as its type of capital financing,
Net Income
(218,753) 360,115 699,600 1,148,367 1,591,095
Average Total Assets
14,054,434 14,094,903 14,265,005 14,418,621 7,266,136
Return on Investments -1.56% 2.55% 4.90% 7.96% 21.90%
Quick asset
6,513,647 6,606,406 7,138,779 7,490,804 7,990,204
Total Liabilities
735,352 795,898 956,575 1,088,135 1,224,344
Quick Ratio
8.86 8.30 7.46 6.88 6.53
Current Assets
6,513,647 6,606,406 7,138,779 7,490,804 7,990,204
Current Liabilities
735,352 795,898 956,575 1,088,135 1,224,344
Quick Ratio
8.86 8.30 7.46 6.88 6.53
Gross Profit
1,266,233 1,649,633 2,070,047 2,526,680 3,022,427
Net Sales
9,400,320 10,069,623 10,786,580 11,554,584 12,377,271
Net Income
(218,753) 360,115 699,600 1,148,367 1,591,095
Net Sales
9,400,320 10,069,623 10,786,580 11,554,584 12,377,271
Sales
9,400,320 10,069,623 10,786,580 11,554,584 12,377,271
Average Total Assets
14,054,434 14,094,903 14,265,005 14,418,621 7,266,136
Asset turnover 66.89% 71.44% 75.62% 80.14% 170.34%
Net Income
(218,753) 360,115 699,600 1,148,367 1,591,095
operations. Since the business is just emerging, different factors like the actual
number of customers, sales, and production are still being determined by the
company.
net income of the company is gradually increasing from the second to the sixth
year. The return on investment even doubles its rate every year.
From the different aspects being presented and considered above, the