CHAPTER I

PROJECT SUMMARY

I. Highlights

A. Project Background

a. Business name: PutoShop

b. Business type: Partnership

c. Business Logo:

PutoShop
FILIPINO DELICACIES

d. Business Location: Barangay Kalubihan, Colon Street, Cebu City

B. Market highlights

The target markets of the proposed business are the following

individuals such as student which is very particular in terms of sweetened

flavor foods, workers who opt to buy a snack that is complete in nutrients,

energy booster and can fit with their budget and also the professionals

1
maybe captivated by the relaxing and convenient design within the shop,

lastly the resident of colon street cebu city.

Demand and supply data are based on the survey which is

conducted to three hundred twenty one 321 respondents. Although this

business is not entirely new to the market, the proponents needs to put

more effort in advertising and promoting the proposed product through

printing flyers, online advertisement basically in facebook, instagram and

youtube.

C. Management highlights

PutoShop is a partnership type of business engaged in food

industry which is organized and managed by the partners. PutoShop’s

initial starting capital is 1 000 000.00. The partners will recruit and hire two

(2) cashiers, two (2) bakers, one (1) maintenance employee, and one (1)

delivery employee that will cater the needs of the customers during the

operating day.

D. Technical highlights

In this aspect, the store location, store layout, tools and equipment in

production process, materials and supplies needed for operational and

administrative function of the business and other expenses needed for

the business to operate such as utilities. This also presents the total

project cost or the start-up cost of the business totaling P 872 970

2
 E. Financial Highlight

After we’re through with the market, management and technical

study, we prepare financial statements. In this financial section, the 5 year

projections (from year 2019-2024) based on the assumptions are shown.

This includes the Projected Statement of Financial Position, Statement of

Financial Performance, Cash Flows, and notes to financial statements.

F. Socio-Economic Highlight

The proposed business aims of taking part in helping the industry

and the society and to boom in the next years of operations. The business

assures to follow various government rules as well as contribute taxes for

the betterment of the community. The business intends to comply with all

the requirements and permits needed for the safety and welfare of

everyone. The realization of the business could benefit the government,

community, consumers, employees and proper waste disposal

3
 Chapter II

Market Aspects

INTRODUCTION

Market study is very important part of a feasibility study. It deals with

gathering and evaluation of data regarding towards customers preferences for a

certain products or services. It also covers the future demand of the proposed

business product.

Market study is needed in market assessment and potential market

prospects. It requires the analysis of existing market. It also involves in the

analysis of market size, market trends, size and scope of industry, forecast sales

projection, and market profitability. Different marketing strategies and marketing

plans are defined and presented. With this study it may leads you to discover

what are those potential needs of the customer which can be inclined with your

products and services. In market study you can also determine your advantages

and disadvantages towards your competitors.

The expected results of a market study are: the identification, the project

market description, survey result, availability of suppliers, contractors or service

providers, and price trends. Template for recording and filing of the results of a

market study is very important.

Market study is very important to the extent without it the business may

have difficulties in identifying the target market as well as the preferences of the

prospective customers.

4
THE PRODUCT/PROJECT

The delicious delicacy of Filipinos called “Puto” was originated from

Asian countries such as Japan, China, Thailand, Indonesia and Malaysia. Puto is

a type of steamed rice cake usually served as snacks accompanied with savory

dishes like dinuguan or pancit in the Philippines cuisine. It is also often eaten with

grated cheese on the top of it.

The PutoShop create something new about the delicacy so called puto.

Our shop offers new improved puto with different flavors such as Strawberry,

Buko Pandan, Vanilla, Caramel, Chocolate, Cheese and Mango. We innovate

something to create a business that can brought Filipino Delicacy into the next

level. Mostly People now a day’s want to try and taste something new, that is

why our shop will bring another kind of Puto they never seen and tasted before.

PRODUCT DESCRIPTION

In choosing a product name a lot of things need to be considered such as;

it should be suitable to the product itself, the name should be appealing to the

customer so it can easily catch their attention. The proponents named the

business “PutoShop”, the idea in giving a name came from the product it selves

“puto” aside from it the word PutoShop is somehow same with Photoshop where

the customer can also take their a picture inside the shop. The Puto will have a

design that the customers will opt to take a photo.

5
USES OF PRODUCT

Puto shop offers delicious puto with variety of flavors. There are some of health

benefits and nutrients that the consumer would get from the proposed product.

1. STAWBERRY

Pack with vitamins, Fiber, and particularly high levels of antioxidants

known as polyphenols, strawberries are a sodium-free, Fat-free,

cholesterol-free, low calorie food. They are among the top 20 fruits in

antioxidants capacity and are a good source of manganese and

potassium.

2. CHOCOLATE

Is made from plants< which means it contains many of the health benefits

of dark vegetables as part of your anti-aging diet. These benefits are from

Flavonoids, which get as antioxidants. Antioxidants protect the body from

aging caused by Free radicals, which can cause damage that leads to

heart disease.

3. CARAMEL

They do raise blood sugar and have a negative effect on your blood sugar

and your triglycerides. The best caramels are made with cream and sugar

but they taste good. If you’re going to eat stuff that’s not terribly healthy at

least finds something you really like.

6
4. UBE

It contains more Vitamin E which is important for cardiovascular heath,

sexual health, and healthy skin. It also contains more potassium up to

20% of the daily intake potassium which is very important for

cardiovascular health, lowering blood pressure, and water regulations.

5. CHEESE

Contain a host of nutrients like calcium, protein, phosphorus, zinc, vitamin

A and vitamin B12. Calcium is one of the nutrients most likely to be lacking

in the American diet.

6. VANILLA

Is rich in antioxidants, which can help prevent the breakdown of cells and

tissues in the body and stimulate the body’s natural growth.

7. PANDAN

Pandan is rich in minerals, calories, fats and proteins. It also has many

bioactive compounds important for health. Coconut has carbon fatty acid

called lauric acid which helps in increasing good cholesterol levels in the

blood.

7
USERS OF THE PRODUCT

The proposed business aims to provide the needs of the following

individuals such as workers, students and professionals of the nearby

establishments, people living on subdivisions and the resident of Colon Street

Cebu City. It is highly considered the customers purchasing power, make sure

that the proposed product is still affordable even in the lower level of society. And

also, it considers the wellness of the potential customer by offering them fresh

baked and healthy puto and other Filipino delicacies.

MARKET DESCRIPTION

PutoShop is located at Colon Street, Cebu City where students, workers,

professionals of near establishments, people living in subdivision, other residents

of Colon street, Cebu City as well as walk in people will have an opportunity to

buy the proposed product. The place is more convenient to the consumer for this

is located near schools, apartments, subdivisions and other business

establishments.

TARGET MARKET

The project target customers will be the students, workers, professionals

and the resident of Colon Street, Cebu City. The PutoShop will offer them a fresh

baked puto and also different combination of Filipino delicacies that will surely

satisfy their needs. The proposed products are suits to them which may give

them different vitamins due to its variety of flavors.

8
GEOGRAPHICAL AREAS OF DISPERSION

In finding a location for a business a lot of things need to be considered

such as availability and accessibility. The proponent decided to locate the

business at Colon Street, Cebu City beside Generics Pharmacy, for this area is

very accessible for the customers.

The location is an ideal business place since this is where professionals,

passers, and workers who are the prospective customers of the proposed

business, which is located near mostly of schools and other establishments, are

visible.

CONSOLIDATED SURVEY RESULTS AND INTERPRETATIONS

Question1. Do you eat puto and other Filipino delicacies?

Table 1

Result of question 1

Factors Frequency Percentage

YES 224 69.78%
NO 97 30.22%
Total 321 100%
Table 1 shows that 69.78 % of the respondents said that they eat puto and other

Filipino delicacies and 30.22% of them said they don’t eat puto and other Filipino

delicacies.Question2. What kind of Filipino delicacies do you usually eat?

Table 2

Result of question 2

9
 Variety Frequency Percentage
Puto 77 24.14%
Biko 133 41.38%
Budbud 77 24.14%
Other 34 10.35%
Total 321 100%
Table 2 indicates that 24.14% of the respondents said that they usually eat

puto,41.38% said that they usually eat biko, 24.14% said that they usually eat

budbud and 10.35% said that they usually eat other kind of Filipino delicacies.

Question3. How often do you buy puto and other Filipino delicacies?

Table 3

Result of question 3

Factors Frequency Percentage

DAILY 36 11.11%
WEEKLY 178 55.55%
MONTHLY 107 33.33%
Total 321 100%
Table 3 entails that 11.11% of the respondents prefer to purchase puto and other

Filipino delicacies daily, 55.55% weekly, and 33.33% monthly

Question4. How many times in a week do you usually consume puto and other

Filipino delicacies?

Table 4

Result of question 4

Factors Frequency Percentage

Once 107 33.33%
Twice 143 44.44%
Thrice 71 22.22%
Total 321 100%

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Table 4 marks that 33.33% of the respondents consume puto and other Filipino

delicacies once a week, 44.44% twice a week, and 22.22% thrice a week.

Question5. On average how much does your household willing to spend for puto

and other Filipino delicacies?

Table 5

Result of question 5

Factors Frequency Percentage

Php 20-50 214 66.66%
Php 51-100 71 22.22%
Php 101- above 36 11.11%
Total 321 100%
The table 5 presents that 66.66% of the total respondents are willing to spend

Php 20-50, 22.22% Php 51-100, and 11.11% Php 101-above.

Question6. Where do you usually buy puto and other Filipino delicacies?

Table 6

Result of question 6

Factors Frequency Percentage

Supermarket 107 33.33%
Convenience store 36 11.11%
Fast food chain 71 22.22%
Public market 107 33.33%
Total 321 100%

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Table 6 says that 33.33% of the total respondents usually buy puto and other

Filipino delicacies on supermarket, 11.11% on convenience store, 22.22% on

fast food chains, and 33.33% on public market.

Question7. When would you usually buy puto and other Filipino delicacies?

Table 7

Result of question 7

Factors Frequency Percentage

weekends 178 55.55%
Birthdays 36 11.11%
Holidays 107 33.33%
Total 321 100%
Table 7 signifies that 55.55% of the total respondents usually buy puto and other

Filipino delicacies during weekends, 11.11% every birthday celebration, and

33.33 every holidays.

Question8. What flavor of puto you already eat?

Table 8

Result of question 8

Factors Frequency Percentage

Original 143 44.44%

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 Chocolate 71 22.22%
Strawberry 36 11.11%
Other flavor 71 22.22%
Total 321 100%
Table 8 points out that 44.44% of the total respondents already tasted the

original puto, 22.22% tasted the chocolate flavor, 11.11% tasted the strawberry

flavor and, 22.22% tasted other flavors.

Question9. Aside from the original puto what other flavor do you prefer to taste?

Table 9

Result of question 9

Factors Frequency Percentage

Buko pandan 36 11.11%
Chocolate 71 22.22%
Strawberry 143 44.44%
Other flavor 71 22.22%
Total 321 100%
Table 9 indicates that 11.11% of the total respondents prefers to taste bukod

pandan flavor, 22.22% prefer chocolate, 44.44% prefer strawberry, and 22.22%

prefer other flavors.

Question10. If we were to put a puto and other Filipino delicacies business in

your place, which met your expectations for quality, customer service, etc. how

regularly would you buy puto and other Filipino delicacies?

Table 10

Result of question 10

Factors Frequency Percentage

I would buy almost all my preferred 107 33.33%

13
 puto and other Filipino delicacies

from it
I would only buy every special 71 22.22%

occasions
I would occasionally buy on it 107 33.33%
I would never buy on it 36 11.11%
Total 321 100%
Table 10 reveals that 33.33% of the total respondents would buy all of their

preferred puto and other Filipino delicacies in our proposed business, 22.22%

would occasionally buy, 33.33% would buy for special occasions, and 11.11%

would never buy puto and other Filipino delicacies.

DEMAND

Demand refers to the willingness of the buyer to avail the product. The

data gathered will determine the potential demand of the putoShop and other

Filipino delicacies.

HISTORICAL DEMAND

The information is provided by authorized personnel from Barangay kalubihan,Colon

Street Cebu City

TABLE 12

Population Data

2013 2014 2015 2016 2017

Residents 654 723 866 903 1 104
The table 12 above shows the estimated population of Brgy. Klubihan, Colon

Street Cebu city

14
HISTORICAL DATA COMPUTATION

Table 13

Historical Data Computation for 2013

2013
Target Population 654
Multiply by Once Twice Thrice
% who eat puto 33.33 44.44 22.22
and other Filipino
delicacies
218 291 145
Frequency 1 2 3
218 582 435
Total 1 235
% who would buy 33.33
all from our shop
Actual volume 412

Table 13 shows the computation of the historical data computation for 2012.

Table 14

Historical Data Computation for 2014

2014
Target Population 723
Multiply by Once Twice Thrice
% who eat puto 33.33 44.44 22.22
and other Filipino
delicacies
241 321 161
Frequency 1 2 3
241 642 483
Total 1 366
% who would buy 33.33

15
all from our shop
Actual volume 455

Table 14 shows the computation of the historical data computation for 2014.

Table 15

Historical Data Computation for 2015

2015
Target Population 866
Multiply by Once Twice Thrice
% who eat puto 33.33 44.44 22.22
and other Filipino
delicacies
289 385 192
Frequency 1 2 3
289 770 576
Total 1 635
% who would buy 33.33
all from our shop
Actual volume 545

Table 14 shows the computation of the historical data computation for 2014.

Table 16

Historical Data Computation for 2016

2016
Target Population 903
Multiply by Once Twice Thrice
% who eat puto 33.33 44.44 22.22
and other Filipino
delicacies
301 402 201
Frequency 1 2 3

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 301 804 603
Total 1 708
% who would buy 33.33
all from our shop
Actual volume 569

Table 13 shows the computation of the historical data computation for 2015.

Table 17

Historical Data Computation for 2017

2017
Target Population 1104
Multiply by Once Twice Thrice
% who eat puto 33.33 44.44 22.22
and other Filipino
delicacies
368 491 245
Frequency 1 2 3
368 982 735
Total 2 085
% who would buy 33.33
all from our shop
Actual volume 695

Table 17 shows the computation of the historical data computation for 2017

Table 18
Historical Data
Year Actual Volume

2013 412
2014 455
2015 545

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 2016 569
2017 695

Table 18 shows the summary of historical data for the past five years.

PROJECTED DEMAND

In determining the projected demand the projection method used is Arithmetic

Straight Line Method.
Step 1- Get the difference between the first year and the last year.

Estimated demand for the last year 695

Demand for the first year 412

Difference (increase/decrease) 283

Step 2- Get the average increase/decrease by dividing the result of the

computation in step one by the number of years.

283/5 years= 57

Step 3- Compute the projected demand.

Table 19

Projected Demand for Five Years

Year Computation Projected Demand

2017 545+57 602
2018 602+57 659
2019 659+57 716
2020 716+57 773
2021 773+57 830

18
 Table 19 presents the projected target market of the product for a period of five
years with the use of Arithmetic Straight Line Method.

PROJECTED DEMAND PER VARIETY

Table 20

Projected Demand for original Puto

2017 2018 2019 2020 2021

Total demand 602 659 716 773 830
% who eat original Puto 44.44 44.44 44.44 44.44 44.44
Projected demand 268 292 318 344 369

Table 20 shows the projected demand of red meat for the next five years

based on the result of survey question 8.

Table 21

Projected Demand for chocolate puto

2017 2018 2019 2020 2021

Total demand 602 659 716 773 830
% who eat chocolate Puto 22.22 22.22 22.22 22.22 22.22
Projected demand 134 146 159 172 184

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 Table 21 shows the projected demand of red meat for the next five years

based on the result of survey question 8.

Table 22

Projected Demand for strawberry puto

2017 2018 2019 2020 2021

Total demand 602 659 716 773 830
% who eat strawberry puto 11.11 11.11 11.11 11.11 11.11
Projected demand 67 73 80 86 92

Table 22 shows the projected demand of red meat for the next five years

based on the result of survey question 8.

Table 23

Projected Demand for biko

2017 2018 2019 2020 2021

Total demand 602 659 716 773 830
% who eat biko 41.38 41.38 41.38 41.38 41.38
Projected demand 249 273 296 330 343

Table 23 shows the projected demand of red meat for the next five years

based on the result of survey question 2.

Table 24

Projected Demand for budbud

2017 2018 2019 2020 2021

Total demand 602 659 716 773 830
% who eat budbud 24.14 24.14 24.14 24.14 24.14
Projected demand 145 159 173 187 200

Table 24 shows the projected demand of red meat for the next five years

based on the result of survey question 2.

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 Table 25

Historical Supply

Year Mang Inasal Goldilocks Total

2013 500 450 950
2014 535 490 1 025
2015 487 555 1 042
2016 693 602 1 295
2017 796 852 1 648
Table 25 shows the historical supply for the past five years. The data was

obtained from the service crew of The Mang Inasal and Goldilocks which are the

closest competitor of the proposed business.

PROJECTED SUPPLY

In determining the projected supply the projection method used is Arithmetic

Straight Line Method.
Step 1- Get the difference between the first year and the last year.

Estimated supply for the last year 1 648

Supply for the first year 950

Difference (increase/decrease) 698

Step 2- Get the average increase/decrease by dividing the result of the

computation in step one by the number of years.

698/5 years= 140

Step 3- Compute the projected supply.

21
 Table 26

Projected Supply for Five Years

Year Computation Projected Supply

2017 1 648+698 2 346
2018 2 346+698 3 044
2019 3 044+698 3 742
2020 3 742+698 4 440
2021 4 440+698 5 138

Table 26reveals the projected supply for the next five years.

PROJECTED SUPPLY PER VARIETY

Table 27

Projected Supply for original Puto

Year Total Supply Percentage Projected Supply

2017 2 346 44.44 1 043
2018 3 044 44.44 1 353
2019 3 742 44.44 1 663
2020 4 440 44.44 1 973
2021 5 138 44.44 2 283

Table 27 shows the projected supply of original puto for the next five years

based on the result of survey question 8.

Table 28

Projected Supply for chocolate Puto

22
 Year Total Supply Percentage Projected Supply
2017 2 346 22.22 521
2018 3 044 22.22 676
2019 3 742 22.22 831
2020 4 440 22.22 987
2021 5 138 22.22 1 142

Table 28 shows the projected supply of chocolate puto for the next five

years based on the result of survey question 8.

Table 29

Projected Supply for strawberry puto

Year Total Supply Percentage Projected Supply

2017 2 346 11.11 261
2018 3 044 11.11 338
2019 3 742 11.11 416
2020 4 440 11.11 493
2021 5 138 11.11 571

Table 29 shows the projected supply of strawberry puto for the next five

years based on the result of survey question 8.

Table 30

Projected Supply for biko

Year Total Supply Percentage Projected Supply

2017 2 346 41.38 971
2018 3 044 41.38 1 260
2019 3 742 41.38 1 584
2020 4 440 41.38 1 837
2021 5 138 41.38 2 126

23
 Table 30 shows the projected supply of strawberry puto for the next five

years based on the result of survey question 2.

Table 31

Projected Supply for budbud

Year Total Supply Percentage Projected Supply

2017 2 346 24.14 566
2018 3 044 24.14 735
2019 3 742 24.14 903
2020 4 440 24.14 1 072
2021 5 138 24.14 1 240

Table 31 shows the projected supply of strawberry puto for the next five

years based on the result of survey question 2.

DEMAND – SUPPLY ANALYSIS

After that the projected demand and supply has been measured and
analyzed, proponents have made the relative difference between the demand
and supply, for them to recognize their room for the market competition. The
Market percentage base on the survey is 33%

Table 32

Projected Demand and Supply of original Puto

Projected Projected Projected Unsatisfied

Years Demand Supply Demand
2017 268 1043 387
2018 292 1353 530
2019 318 1663 672
2020 344 1973 815
2021 369 2283 958

Table 32 reveals the unsatisfied demand of original puto.

Table 33

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 Projected Demand and Supply of chocolate puto

Projected Projected Projected Unsatisfied

Years Demand Supply Demand
2017 134 521 194
2018 146 676 265
2019 159 831 336
2020 172 987 407
2021 184 1142 479

Table 33 reveals the unsatisfied demand of chocolate puto.

Table 34

Projected Demand and Supply of strawberry puto

Projected Projected Projected Unsatisfied

Years Demand Supply Demand
2017 67 261 326
2018 73 338 265
2019 80 416 336
2020 86 493 412
2021 92 571 479

Table 34 reveals the unsatisfied demand of strawberry puto.

Table 35

Projected Demand and Supply of biko

Projected Projected Projected Unsatisfied

Years Demand Supply Demand
2017 249 971 722
2018 273 1260 987
2019 296 1584 1288
2020 320 1837 1517
2021 343 2126 1783

25
Table 35 reveals the unsatisfied demand of biko.

Table 36

Projected Demand and Supply of budbud

Projected Projected Projected Unsatisfied

Years Demand Supply Demand
2017 145 566 421
2018 159 735 576
2019 173 903 730
2020 187 1072 885
2021 200 1240 1040

Table 36 reveals the unsatisfied demand of budbud.

Table 37

Market Share of Original Puto

Projected Unsatisfied Market Market Share

Years Demand Percentage
2017 387 33% 128
2018 530 33% 175
2019 672 33% 222
2020 815 33% 269
2021 958 33% 316

Table 37 shows the market share of original puto.

Table 38

Market Share of chocolate puto

Projected Unsatisfied Market Market Share

Years Demand Percentage
2017 194 33% 64
2018 265 33% 87
2019 336 33% 111
2020 407 33% 134
2021 479 33% 158

26
Table 38 shows the market share of chocolate puto.

Table 39

Market Share of strawberry puto

Projected Unsatisfied Market Market Share

Years Demand Percentage
2017 326 33% 108
2018 265 33% 87
2019 336 33% 111
2020 412 33% 136
2021 479 33% 158

Table 39 shows the market share of strawberry puto

Table 40

Market Share of biko

Projected Unsatisfied Market Market Share

Years Demand Percentage
2017 722 33% 238
2018 987 33% 326
2019 1288 33% 425
2020 1517 33% 501
2021 1783 33% 589

Table 40 shows the market share of biko.

Table 41

Market Share of Budbud

Projected Unsatisfied Market Market Share

Years Demand Percentage
2017 421 33% 139
2018 576 33% 190
2019 730 33% 241
2020 885 33% 292
2021 1040 33% 343

Table 41 shows the market share of budbud.

27
PRICE STUDY

In determining the price of the flavored puto and other delicacies,

the proponents consider the demand and supply situation of the product in
the market, the materials used and the labor and overhead applied to the
product. Based on the survey conducted, the proponents found out that most
of the respondents spend Php20-50. Therefore the price should range from
Php10-50 but may vary considering the other flavors
MARKETING PROMOTION
Marketing strategy has objective in the increase of sales and in achieving
a sustainable competitive advantage. It is a written plan that combines product,
promotion, distribution, and pricing approach, identifies the firms marketing goals
and how to achieve them within stated time frame.
Proponents sue different marketing strategies in building relationships and
increasing consumer awareness. The proponents are committed to offer and
provide premium freshly baked puto and other Filipino native delicacies and
outstanding services that meet the customers’ needs. Hence are the marketing
strategies.
 Product
Provide customers with a freshly baked and nutritious puto and other Filipino
Delicacies.
 Price
The proposed business will implement an affordable price that customers
can able to pay.
 Place
Easy to access the business location and with the convenient
environment since its location is along the road whereby customers can clearly
recognize the proponent’s business.
 Promotion
A successful business needs to have a good marketing strategy in such a
way of advertising the product such as printing flyers, tarpaulins, and online
advertisements like in Facebook and Instagram. Use word of mouth to give the
28
customers the realistic information to encourage them to buy the product.
Marketing strategy doesn’t rely upon a singly to attract customers. As the
proponents wants to attract lots of customers, they offer beyond cuts of meat.
The proposed business also offers freshly baked puto and other Filipino native
delicacies.

Chapter III

Management Study

Introduction

Management study focuses on analyzing the different policies and

practices in the framework of organizational growth and development. It also

integrates accounting, marketing, finance, information system and operation

which are really important and substantial in starting a business

Management stands as a support system of a business therefore no

business can survive for a long run without a strong management. Management

29
directs the group efforts towards the achievement of the pre-determined goals. It

also allows the organization to cope up and survive to the fast changing

environment. Management builds up different person that is suitable in each

position, having exact skills, trainings and qualifications. It is concerned with

acquiring maximum prosperity with minimum efforts and essential wherever

group efforts are required to be directed towards achievements of common

goals.

Business is considered as a group activity where management holds an

important role in making it more effective. It combines the human and material

resource together and motivates the people in achieving the goals. The available

resources of production are use to the extent that sort of wastages and

inefficiencies drop to the minimum level. If the managers in any business are

inconsiderate and poorly performed good relationship towards its employee

basically it will lead to unhealthy relationship within the business that may lead to

negative outcomes. The motivational level of the employee is directly

proportional to a good and positive management.

BUSINESS LOGO

PutoShop
FILIPINO DELICACIES

30
BUSINESS TYPE

PutoShop involves in food industry wherein the proponents are engaged

in selling different food products specifically Filipino delicacies. The purpose of

this business is not just to provide customer’s needs the way it used to but to

bring satisfactory in different level. The shop is located in accessible place where

customers can easily find and go for it especially the customers near Colon

Street Cebu City

PROPOSED LEGAL STRUCTURE

The proponents proposed partnership form of business owned by Angelita

Ibarita, Alona Mae Villarmea and Ivy Jaron who invested a total of Php1 000

000.00 starting capital. The partners must have full knowledge about the

business operations and financial decisions. In case of failure the partners shall

face the consequences based on the scheme that they’ve sign together,

including the obligation to pay the debts. Together with their employees, the

partners will be the one to handle the customers while managing other aspects of

the business. The store is open seven days a week and functions twenty-four

31
hours. Also the partners will assign one of them to handle for interviewing and

hiring employees.

The proposed products are variety of puto products with different flavors

which is first time to be indulge by the customers together with other Filipino

delicacies. It is a healthy and affordable products that will surely catch the hearth

and taste of the customers.

STATEMENT OF FUNCTION OF EACH UNIT

The Vision, mission and goals are stated below to create a formal

relationship towards customers and resources within the proposed business in

order to reach the goals and objectives.

A. VISION

Our vision, PutoShop a Filipino delicacies store that will surely suits to the

customers who loves to eat Filipino native delicacies, that will be known

for its another kind of delicacies especially puto around the country.

B. MISSION

Our mission, to provide and create a delicious and rare “puto” flavored

products and other Filipino delicacies to satisfy the taste and preferences

of this generation and to establish good relationship between the business

and customers.

C. GOALS

32
  To provide customer satisfaction through quality Puto and other

Filipino delicacies.

 Introduce new kind of Puto with different kind of flavors to the public.

 To bridge the old Filipino delicacies to this new generation.

 Provide excellent customer service.

 Establish good relationship between customers and employees

 To be known nationwide.

 To establish partners in different fast food chains

 To generate stable income

LEGAL REQUIREMENTS

In building a business different licenses and permits will be required

depends on what kind of business are you going to establish. The following are

some requirements before the PutoShop allowed to open and start.

 Department of Trade Industry Certificate of registration

 Barangay Certificate of Business Registration

 Mayor’s Business Permits and Licenses

 Bureau of Internal Revenue Certificate

 Accomplished and notarized site clearance application form

33
ORGANIZATIONAL CHART

Figure 1

OWNERS/MANAGERS

CASHIER ATTENDANT MAINTENANCE DELIVERY STAFF

34
Figure 1 shows the organizational chart of PutoShop which composed with

owners and manager down to cashier attendant, maintenance, and delivery

employee’s

MANAGEMENT PERSONNEL

PutoShop will be managed by the partners of the business, Angelita Ibarita,

Alona Mae Villarmea and Ivy Jaron. They are responsible for the recruitment and

selection of employees as well as the compensation management.

JOB ANALYSIS

PutoShop provides information to the applicant which helps to determine which

employees are best fit in designated job.

CASHIER

Job Specification

 At least 18-35 years old

 At least 2 years experience

 At least high school graduate

 Must have pleasing personality

 Must be customer oriented

 Willing to be trained

Job Description
35
  Communicate and assist customers in any way possible and as the

customers may require.

 Work with customers with the most pleasant disposition.

 Help process payments made by customers.

 Reports sales accurately.

 Responsible for opening and closing the store

BAKER

Job Specification

 At least 18-35 years old

 At least 2 years experience

 At least high school graduate

 Must have pleasing personality

 Must be customer oriented

 Willing to be trained

Job Description

36
  Bake Filipino delicacies especially puto

 Work with the casher and other employee with the most pleasant

disposition

 Help in processing more ideas about the uniqueness of the main

product

 responsible for opening and closing the store

 works with customers also

MAINTENANCE

Job Specification

 At least 18-35 years old

 At least 2 years experience

 At least high school graduate

 Must have pleasing personality

 Willing to be trained

Job Description

37
  Maintain the cleanliness and orderliness of the shop

 Fix broken stalls and appliances

 Responsible in opening and closing the store

 Assist some customer concerns regarding on cleanliness

DELIVERY STAFF

Job Specification

 At least 18-35 years old

 At least 2 years experience

 At least high school graduate

 Must have pleasing personality

 Willing to be trained

Job Description

38
  Deliver orders in fastest but safest way

 Responsible for opening and closing the store

 Assist some orders made by the customers

RECRUITMENT PROGRAM

This serves as guide for those who are willing to apply for the vacant position.

The applicants are required to submit their application letter and resume/ bio

data. Applicants will be informed thru email, calls and text for an interview with

the owners of the business. The applicants who passed will undergo an

orientation and required to submit final requirements as follows:

 Barangay clearance

 Police clearance

39
  NBI clearance

 Medical Certificate

 NSO/ birth certificate

 Diploma

PAYMENT OF SALARIES AND WAGES

Salaries will be given every 15 th and 30th day of the month. The employee will

receive their salaries according to their rate that will increase based on their

performances.

COMPENSATION BENEFITS

An employee benefit applies to all employees of the business. 13 th month pay will

be given at the end of the year which will be based on their monthly salary. SSS,

PhilHealth and Pag-ibig will also part of the employee benefits which will be

shared by the employer and the employee. SSS, PhilHealth and Pag-ibig are

contributed based on their contribution schedule.

SALARIES AND WAGES

Position Daily rate Monthly rate Yearly rate 13th month

Cashier 1 Php 386.00 Php 8 395.00 Php 100 Php 8

746.00 395.50
Delivery staff 1 Php 386.00 Php 8 395.00 Php 100 Php 8

746.00 395.50
Maintenance 1 Php 386.00 Php 8 395.00 Php 100 Php 8

746.00 395.50
Baker 1 Php 386.00 Php 8 395.00 Php 100 Php 8

746.00 395.50

40
 Cashier 2 Php 386.00 Php 8 395.00 Php 100 Php 8

746.00 395.50
Baker 2 Php 386.00 Php 8 395.00 Php 100 Php 8

746.00 395.50
Total Php 2 Php 50 Php 604 Php 50

316.00 370.00 476.00 373.00

Social Security System Contribution

Position Monthly rate Social Security System Total

Employer Employee Contribution

Cashier 1 Php 8 395.50 Php 626.20 Php 308.80 Php 935 .00
Delivery staff 1 Php 8 395.50 Php 626.20 Php 308.80 Php 935 .00
Maintenance 1 Php 8 395.50 Php 626.20 Php 308.80 Php 935 .00
Baker 1 Php 8 395.50 Php 626.20 Php 308.80 Php 935 .00
Cashier 2 Php 8 395.50 Php 626.20 Php 308.80 Php 935 .00

Baker 2 Php 8 395.50 Php 626.20 Php 308.80 Php 935 .00

Total Php 50 373.00 Php 3 757.20 Php 1 852.80 Php 5 610.00

PhilHealth

Position Monthly rate PhilHealth Total

Employer Employee Contribution

Cashier 1 Php 8 395.50 Php 137.50 Php 137.50 Php 275 .00
Delivery staff 1 Php 8 395.50 Php 137.50 Php 137.50 Php 275 .00
Maintenance 1 Php 8 395.50 Php 137.50 Php 137.50 Php 275 .00
Baker 1 Php 8 395.50 Php 137.50 Php 137.50 Php 275 .00
Cashier 2 Php 8 395.50 Php 137.50 Php 137.50 Php 275 .00
baker 2 Php 8 395.50 Php 137.50 Php 137.50 Php 275 .00
Total Php 50 373.00 Php 825.00 Php 825.00 Php 1 650.00

41
 Pag-Ibig

Position Monthly rate Pag-Ibig Total

Employer Employee Contribution

Cashier 1 Php 8 395.50 Php 100.00 Php 100.00 Php 200 .00
Delivery staff 1 Php 8 395.50 Php 100.00 Php 100.00 Php 200 .00
Maintenance 1 Php 8 395.50 Php 100.00 Php 100.00 Php 200 .00
Baker 1 Php 8 395.50 Php 100.00 Php 100.00 Php 200 .00
Cashier 2 Php 8 395.50 Php 100.00 Php 100.00 Php 200 .00
Baker 2 Php 8 395.50 Php 100.00 Php 100.00 Php 200 .00
TOTAL Php 50 373.00 Php 600.00 Php 600.00 Php 1 200.00

Management Policies

 Employee must report on time (10:00 am- 7:00 pm) for weekdays,

(9:00 am-7:00 pm) for Saturday and (8:00 am – 5:00 pm) for Saturdays

 Proper and prescribe uniform must be wear inside the premises

 Absences without valid reason and tardiness are subject to disciplinary

action and salary deduction

 Customer must be the first priority. Observe excellent customer service

 No using of gadgets during working hours

 Perform food safety and proper hygiene

42
  Drinking alcohol, smoking and used of prohibited drugs are strictly not

allowed

 Cleanliness must be observe inside the business area

 Proper garbage segregation must be observe inside

Employee’s offenses and sanctions

OFFENSES SANCTIONS
Minor offense  Disciplinary action

 Tardiness ( at least 15 minutes)  Salary deduction

 Absences ( at least 2 absences

per month)
 First and second offense  Verbal warning

 Third offense  Suspension

 Fourth offense  Termination

43
  Influence of alcohol during

working hours

 Violent action towards co-

employee

 First and second offense  Termination

 Third offense  Payment for damages

 Fourth offense  Case

 Fraud

 Document alteration and false

information

 Illicit activities such as gambling,

illegal product selling not

registered by the law and

notorious activities

Performance appraisal

Performance appraisal is the systematic evaluation of the performance of the

employees and to understand the abilities of a person for further growth and

development. It consists of regular views of employee performance within

organizations.

44
Performance appraisals are made in order to make an improvement of the

attendant’s performance in their work. This is very important to manage the

people working in the business and to show their interest in their field of work.

Chapter IV

Technical Aspect

Introduction

Technical study helps in the assessment of the logistical aspects of

business operation. It includes segments on necessary materials, labor, and

technology. The plant layout, size, and structure of the business are all presented

on this aspect to understand the business operation.

45
The technical study discusses how the products will be produced, specifying

each step and the time involved. This also presents a list of all the needed

equipment and other facilities. The list should include the description, the

specification, and the prices of the listed assets. It also determines whether it is

necessary to put up, to rent, or to lease a building. The proponents gather maps

in order to show the location of the proposed project.

The Product

“Gotta Lotta Meat” offers healthy and fresh cuts of meat and a local expert

who could recommend meats and recipes, and gives you a distinct variety when

it comes to different cuts of meat. A shop to step in that allow for those with even

the smallest of the budget to eat fresh and healthy meat and providing you a

professional butchery service with skills in butchery.

Operational Flowchart

Service process upon entering PutoShop

START
How to buy in PutoShop?

Smile and greet the customer politely.

Do you have an order?

46
 YES
NO

Wait for the customer to choose

what kind of meat he/she will buy.

Take the order accurately and do

suggestive selling.

Get the order on the stall where the

freshly baked puto placed

Total the order and state the amount

of purchase.

Receive the payment and give

change, if needed

END

Area Size and Business Schedule

The area size of the store is 8m x 6 m. This will consist of baker’s and

customer’s area. The store will operate Monday to Sunday, during special

holidays and other days declared by the management. It opens at 8 am and

closes at 8 pm. The proponents choose this schedule because as early as 7:00

in the morning the service crew can prepare.

47
 FIGURE 2

Store layout

Vicinity Map

48
49
 Table 47

Renovation Cost

Carpentry Works
Qty. Items Supplier Price Unit Total Cost
Kim
Richmond Marine
6 Housing 1,350.00 3/4" 8'X4' 8 100.00
Plywood
Supply
Kim
Boysen Paint Permacoat
5 Housing 640.00 4liters 6,400.00
Latex White
Supply
2 Boysen Paint Permacoat Kim 640.00 4liters 1 280.00

Latex red Housing

50
 Supply
Kim
Boysen Paint Permacoat
2 Housing 640.00 4liters 1 280.00
Latex blue
Supply
Kim
Boysen Paint Permacoat
2 Housing 640.00 4liters 1 280.00
Latex yellow
Supply

Kim

2 Boysen Paint Semi-Gloss Housing 590.00 4liters 1 180.00

Supply
Kim

2 Common Nails #1,#2 Housing 80.00 1kg 160.00

Supply
Kim

45 Mariwasa Tiles Housing 54.00 16"x16" 2 430.00

Supply
konstruktTileworks K302 Wilcon

1 All - Purpose Tile Builder's 250.00 25kg/bag 250.00

Adhesive Co.
Wilcon
BEHR Premium Wet
1 Builder's 1,650.00 Gallon 1,650.00
Look Sealer
Co.
kima Glass
8 Tempered Glass Wall 700.00 per square 5 600.00
Supply
Wilcon

1 Faultless Handle Set Builder's 3,900.00 Set 3,900.00

Co.
Masonry Works

51
 Kim Housing
8 Steel Bar 106.78 10mmX6m 854.24
Supply
kim Housing cubic
1 Sands 3,000.00 3,000.00
Supply meter
Wilcon Builder's
2 Cement 248.50 25kg/bag 497.00
Co.
Plumbing Works
Wilcon Builder's
2 PVC Installations 5,000.00 set 10,000.00
Co.
Wilcon Builder's 20,000.0
2 Sink Set set 40,000.00
Co. 0
Wilcon Builder's
2 Bowl 15 000 Set 30 000.00
Co.

Electrical Works
GE 30amps Double Pole
1 ACE Hardware 6,500.00 set 6,500.00
Circuit Breaker
3M Scotch Electrical Wilcon Builder's
3 7.00 3/4inx66ft 21.00
Tape Co.
Wilcon Builder's
5 2 Gang Outlet 65.00 set 325.00
Co.
Pan Refina
Wilcon Builder's
2 WEG5522MW 3-Way 180.00 piece 360.00
Co.
Switch
Wilcon Builder's
5 #12 Stranded Wire 48.00 meters 240.00
Co.
Labor Works
Carpentry ( 2workers x 20 days x 550) 22,000.00
Masonry ( 4 workers x 20 days x 450) 18,000.00
Electrical ( 2 workers x 10 days x 550) 11,000.00
Plumbing ( 2 workers x 10 days x 550) 11,000.00
Total Renovation Cost: P187,304.24

52
Manpower Requirements

Ms. Ibarita, Villarmea, Jaron are the manager and partnership owners of

the PutoShop. They are the one handling the business, and also Ms. Jaron is the

one assign on interview to the applicants while Ms. Villarmea is in charge on

customer service on handling customers complains, lastly Ms. Ibarita is in charge

in who will decides the employees, offenses, sanctions, or even termination.

In this case if ever that the employee is absent the three of them will substitute to

fulfill the employee job. The managers required cashier must be at least 18 years

old, and at least a high school graduate with pleasing personality and must be

customer oriented

Equipment and Supplies

At the start of the operation, listed below are the office supplies, cleaning

materials, office furniture & fixtures and stall equipment necessary for the smooth

flow of the operation.

Table 48

Furniture and Fixtures

Quantitie Items Description Supplier Unit Cost Total Cost

53
s
3 pcs. Square table lazada phil. 4 000.00 12 000.00
10 sets chairs lazada phil. 1 040.00 17 400.00
2 set Cashier’s Table Unitop 4,755.00 9 510.00
1 pc Filing Cabinet SM City Cebu 7,999.00 7,999.00
Total P46 909.00

Table 49

Store Equipment

Quantities Items Description Supplier Unit Cost Total Cost

1 unit Oven Lazada 38 560.00 38 560.00
1 unit Steamer Lazada 7 600.00 7 600.00
1 unit refrigerator Samsung 16 000.00 16 000.00
1 unit coffee maker Lazada 12 900.00 12 900.00
Total 75 060.00

Table 50

54
 Office Supplies

Quantitie Items Description Supplier Unit Cost Total Cost

s
2 boxes Ball pen People’s 40.00 80.00

Educational

Supply
2 pcs Broom Unitop 35.00 70.00
2 pcs Dustpan Unitop 45.00 90.00

4 apron Lazada 256.00 1 024.00

2 pcs Mop Unitop 75.00 150.00
4 pcs Trash Can Unitop 45.00 180.00
8 packs Trash bag Unitop 25.00 200.00
3 dozen Rags Unitop 10.00 30.00
20 packs Plastic Gloves Unitop 59.00 1,180.00

(25 pcs

per pack)
50 pcs Face-Mouth Masks Lazada 252.00 252.00
Total P 3 256.00

Table 51

Other Fixed Assets

Quantitie Items Description Supplier Unit Cost Total Cost

55
s
1 set CCTV Package 3 CCTV Cebu 13,500.00 13,500.00

 CCTV

Cameras

 DVR

 Video Power

 Cable

 Adaptor

 Remote

Control

 DVD
2 units Standard Inverter Lazada 24,995.00 49,990.00

Split Type Air-

Conditioned

Wall Mounted

Voltage: 220 V

Size: 72x27x50 cm

(indoor)

Horsepower: 1.0
2 units Fire Extinguisher Ace 2,040.00 2,040.00

Hardware
2 units Switches Ace 30.00 60.00

56
 Hardware
Total P 65,560.00

UTILITIES

The business will not operate at a more effective and efficient way without

the utilities that the business needs. Its installation is highly regarded. The

business would be installed by the Visayan Electric Company (VECO) and water

through Metropolitan Cebu Water District (MCWD)

Table 52

Utilities

Supplier
Electricity VECO 2 300.00
Water MCWD 2 000.00
Total P4,300.00

Permits and Licenses

To start the operation, we will have to secure different permits and

licenses in compliance with all the requirements of the government agencies to

legally operate.

Table 53

Permits and Licenses

BIR Registration 450.00

DTI Registration 550.00

57
Business Permit 2,800.00
Sanitary Permit 300.00
Barangay Clearance-Bacayan 400.00
Total P4 500.00

Table 54

Production Cost

quantities items description Supplier unit cost total cost

25kg Flour Carbon market 32.00 800.00

2 boxes Evaporated milk Colonnade 34.00 1 632.00

supermarket
5kg White sugar Carbon market 60.00 300.00
25kg Baking powder Carbon market 30.00 750.00
10 trays Egg Carbon market 154 1 540.00
50 pcs. Butter Colonnade 31.00 1 550.00

supermarket
50 pcs. Cheese Colonnade 45.00 2 250.00

supermarket
1pc. Ube syrup Gaisano south 94.50 94.50
1pc. Vanilla syrup Gaisano south 94.50 94.50
1pc. Strawberry Gaisano south 94.50 94.50

syrup
1pc. Caramel syrup Gaisano south 94.50 94.50
1pc. Buko pandan Gaisano south 94.50 94.50

syrup
1pc. Chocolate syrup Gaisano south 94.50 94.50
1 pack Coffee powder Gaisano south 350.00 350.00
1 pack Chocolate Gaisano south 380.00 380.00

powder
1 case Coca-cola Carbon visayan 138.00 138.00
1 case Mountain dew Carbon visayan 280.00 280.00

58
1 case Royal Carbon visayan 150.00 150.00
1 case Sprite Carbon visayan 150.00 150.00
1 box Summit water Colonnade 8.50 204.00

supermarket
Total 11 041.00

TOTAL PROJECT COST

Gotta Lotta Meat

Estimated Project Cost

For the First Month of Operation

59
A. Fixed Capital Cost

Renovation Cost 187 304.00

Furniture and Fixtures 46 909.00

Store Equipment 75 060.00

Other Assets 65 560.00 P 309 273.00

B. Pre-Operating Costs

Research and Studies 5,000.00

Permits and Licenses 4 500.00

Marketing and Promotion 10,000.00 P 19 500.00

C. Initial Working Capital Cost

Production Cost 11 041.00

Office Supplies 3 256.00

Salaries Expense 50 370.00

Rent Expense 10 000.00

Utilities Expense 4 300.00

Petty Cash Fund 5,000.00

Change Fund 2,000.00 P 85 967.00

TOTAL P414 740.00

Table 55

60
 Direct Labor

Baker 1 8 395.00
Baker 2 8 395.00
TOTAL P 16 790.00
Table 56

Manufacturing Overhead

Supplies 3 256.00
Advertising 10,000.00
Depreciation- Equipment 7 506.00
Depreciation- Furniture 4 691.00
Depreciation- Leasehold 15 609.00
Rent Expense 10 000.00
Utilities 4 300.00
Total P 55 362.00

Direct Labor 16 790

Divided by est. no. of meat produced

(Based on the demand) /16 810

Direct Labor Applied P0.99

Factory -Overhead 14 300

Divided by est. no. of meat produced

(based on the demand) /16 810

Factory Overhead Applied P0.85

Table 57

61
 Product Costing

Flavors
Original Chocolate Vanilla Strawberry Ube
Direct Material 0.77 0.77 0.77 0.77 0.77
Direct Labor 0.99 0.99 0.99 0.99 0.99
Factory 0.85 0.85 0.85 0.85 0.85

overhead
Unit Cost 2.61 2.61 2.61 2.61 2.61
Mark Up 1.00 1.50 1.50 1.50 1.50
2.61 3.92 3.92 3.92 3.92
Selling Price P 5.00 P 7.00 P 7.00 P 7.00 P 7.00

(per kilo)

Flavors
Buko pandan Cheese
Direct Material 0.77 0.77
Direct Labor 0.99 0.99
Factory 0.85 0.85

overhead
Unit Cost 2.61 2.61
Mark Up 1.50 1.50
3.92 3.92
Selling Price P 7.00 P 7.00

(per kilo)

FOOD SAFETY, QUALITY, AND GOOD MANUFACTURING PRACTICES

Food is scientific discipline describing handling, preparation, and

storage of food in ways that prevent food burn illness. This will include some

routines that should be followed to avoid potentially severe health hazard. The

62
tracks within this line taught are safety between industry and the market and then

between the market and the consumer.

The management adopts three principles of food hygiene according to

World Health Organization (WHO):

 Prevent contaminating food with pathogens spreading from people,

pets, and rats.

 Store products at the proper temperature.

 Do use safe water and raw materials.

The following are food safety practices:

 Wash hands with soap and clean water before preparing, handling,

and storing the products.

 Clean dishes and utensils (knives, etc.) after use and keep them in a

place where flies or dust can’t get them.

 Keep product storage and preparation places clean and tidy.

 Avoid or prevent littering because messy and dirty places attract

flies, rats, and other organisms that spread disease.

 Observe cleanliness inside the premises.

Proper Receiving and Food Storage

Product quality control begins in receiving of products before it will

proceed to production. Thus, the management of PutoShop assures that before

63
the products and other related goods must duly be checked to avoid receiving of

damage and spoilage products. Once accepted, the product needs to be stored

properly to maintain high quality and maximize shelf life.

First-In, First-Out (FIFO)

PutoShop implements the First in, First out basis wherein whatever gets in

first in the inventory should be the first to be sold. Since PutoShop is food

product; to avoid damage especially on perishable goods, the management

should follow the First-In, First Out method.

CHAPTER V

FINANCIAL STUDY

FINANCIAL ASSUMPTIONS:

1. The business will be a partnership with an initial capital of P 600,000.

64
2. The Property Plant and Equipment of the company are as follows:

Asset Useful Life

Equipment 10

Leasehold Improvement 10

Furniture and Fixtures 10

3. The proponent will use the straight-line method in depreciating the equipment and

leasehold of improvement with no residual value.

4. The company will establish one separate petty cash fund one for miscellaneous

expenses amounting to P5, 000.

5. The utilities expense of the business will be 2,500 per month that is expected to

increase by 10% per year

6. Salaries will be payable every 15th and 30th of the month.

7. The proprietor adheres to the rules and regulations of giving the employees

additional compensation and benefits like SSS, Phil health, and PAG-IBIG. Both

the employer and employee will share the payment of the benefits and is to be

deducted from their gross pay and the owner withholds it and pays it to the

government agencies. SSS, Phil health, and PAG-IBIG are paid every 10th of the

following month.

8. The increase of sales will be based on the increase in demand.

9. The selling price of the food will increase by 2% based on the average inflation

rate of the Philippines as if June 2017 as provided by the Philippine Statistics

Authority (PSA) for the next four (4) years.

10. The utilities such as water and electricity will be the following month.

65
11. Ending Raw Materials Inventory is maintained at 15% of total raw materials

available for use

12. Supplies are automatically expensed.

13. The company will use the calendar year.

14. The lease shall be for (5) years beginning 01 January 2017 and ending December

2021, with an option to renew for another year upon agreement of both parties.

The lease can only remove its things after the full payment of obligations due to

the lessor and after the presentation of a written clearance slip issued by the lessor

if the lease has been terminated.

15. The monthly rental is Php 12,000. Prepaid rent covers two months advancement.

16. Withdrawal is 20% of the net income starting in the third year of the business.

17. There is an employee that the salary is above minimum; it is subject to

withholding tax. The deadline of expanded tax and Compensation tax is 10 of

January.

18. Income Tax is computed using the individual tax table.

19. Withholding Tax is paid on the following quarter.

20. All amounts in the above financial statements is in Philippine Peso.

PutoShop
STATEMENT OF FINANCIAL POSITION
For the year end December 31 , 2017

Current Assets Note

Cash 4 P 170 420
Prepaid Rent 10,000
Inventory 5 P170 013
Total Current Assets   P350 433

66
 Noncurrent
Assets
Property and Equipment  6 366 580
Total Noncurrent Assets   366 580

TOTAL
ASSETS     717 013

Current
Liabilities
Withholding Tax Payable 3,950
Percentage Tax Payable 5 563
Accrued Payable 7 7 500
Income Tax Payable
Total Current Liabilities   P17 013

Owner's Equity
Ibarita, Jaron, Alona   P700 000

TOTAL LIABILITIES AND

OWNER'S EQUITY   P717 013
See accompanying notes to financial statement.

PutoShop
STATEMENT OF COMPREHENSIVE INCOME
For the year end December 31 , 2017

Note

Sales 8 1,579,295

Cost of Goods Sold   9 982,141

67
Gross Profit 597,154

Less: Operating Expenses   10 580,969

Earnings before Tax 16,185

Less: Income Tax   -

Net Income   16,185

See accompanying notes to financial statement.

PutoShop
STATEMENT OF OWNER’S EQUITY
For the year end December 31 , 2017

Capital, beginning 530,000

Net Income (16,185)

68
Withdrawals -

Capital, ending   546,185

PutoShop
STATEMENT OF CASH FLOWS
For the year end December 31 , 2017

Cash Flow from operating activities:

1,57
Cash received from customer 9,295
698,
Less: Cash payment for purchases merchandise 255
Cash payment for operating expenses 937,

69
 341
(56,
Net cash provided by operating activities 302)

Cash flow from investing

activities:
19
Cash paid for leasehold improvements 2,800
2
Cash paid for furniture and fixture 3,849
10
Cash paid for Store Equipment 9,242
6
Cash paid for other Fixed Assets 5,560
391
Net cash used for investing activities ,451

Cash flow from financing

activities:
Initial Capital investment 530,00

Withdrawals -
Net Cash Flow provided financing activities 530,000

NET CASH FLOW 82,247

Cash, beginning           -
82,
Cash, Ending             247

PutoShop
STATEMENT OF FINANCIAL POSITION
For the year end December 31 , 2018

Current Assets Note

Cash 4 P195,475
Prepaid Rent 24,000
Inventory 5 112,710
Total Current Assets   P332,185

70
 Noncurrent
Assets
Property and Equipment  6 331,253
Total Noncurrent Assets   331,253

TOTAL
ASSETS     663,438

Current
Liabilities
Withholding Tax Payable 6,273
Percentage Tax Payable 12,641
Accrued Payable 7 8,450
Income Tax Payable -
Total Current Liabilities   P31,858

Owner's Equity
Ravina, Capital   P631,580

TOTAL LIABILITIES AND

OWNER'S EQUITY   P663,438

See accompanying notes to financial statement.

PutoShop
STATEMENT OF COMPREHENSIVE INCOME
For the year end December 31 , 2018

Note

Sales 8 1,685,437

Cost of Goods Sold   9 1,027,562

71
Gross Profit 657,875

Less: Operating Expenses   10 567,986

Earnings before Tax 89,889

Less: Income Tax   4,494

Net Income   85,395

See accompanying notes to financial statement.

PutoShop
STATEMENT OF OWNER’S EQUITY
For the year end December 31 , 2018

Capital, beginning 546,185

Net Income 85,395

72
Withdrawals -

Capital, ending   P631,580

PutoShop
STATEMENT OF CASH FLOWS
For the year end December 31 , 2018

Cash Flow from operating activities:

Cash received from customer 1,685,437

Cash payment for purchases
Less: merchandise 646,659

73
 Cash payment for operating
expenses 925,550
Net cash provided by operating
activities 113,228

Cash flow from investing

activities:
Cash paid for construction of
building -
Cash paid for machineries and
equipment -
Cash paid for furniture and
fixture -

Net cash used for investing activities -

Cash flow from financing

activities:
Initial Capital
investment -

Withdrawals -
Net cash used for financing activities 0

NET CASH
FLOW 113,228

Cash, beginning             82,247

Cash,
Ending               195,475

PutoShop
STATEMENT OF FINANCIAL POSITION
For the year end December 31 , 2019

Current Assets Note

Cash 4 P336,594
Prepaid Rent 24,000

74
 Inventory 5 120,664
Total Current Assets   P481,258

Noncurrent
Assets
Property and Equipment  6 301,154
Total Noncurrent Assets   301,154

TOTAL
ASSETS     782,411

Current
Liabilities
Withholding Tax Payable 6,443
Percentage Tax Payable 13,462
Accrued Payable 7 8,725
Income Tax Payable 20,157
Total Current Liabilities   P48,787

Owner's Equity
Ravina, Capital   P733,624

TOTAL LIABILITIES AND

OWNER'S EQUITY   P782,411

See accompanying notes to financial statement.

PutoShop
STATEMENT OF COMPREHENSIVE INCOME
For the year end December 31 , 2019

Note

Sales 8 1,794,952

75
Cost of Goods Sold   9 1,072,910

Gross Profit 722,042

Less: Operating Expenses   10 574,330

Earnings before Tax 147,713

Less: Income Tax   20,157

Net Income   127,556

See accompanying notes to financial statement.

PutoShop
STATEMENT OF OWNER’S EQUITY
For the year end December 31 , 2019

Capital, beginning 631,580

Net Income 127,556

Withdrawals 25,511

Capital, ending   733,624

PutoShop
STATEMENT OF CASH FLOWS
For the year end December 31 , 2019

Cash Flow from operating

activities:
1,79
Cash received from customer 4,952
Less: Cash payment for purchases 691,

76
 merchandise 715
Cash payment for 936,
operating expenses 607
Net cash provided by operating activities 166,630

Cash flow from investing

activities:
Cash paid for construction of
building -
Cash paid for purchase of
equipment -

Cash paid for furniture and fixture -

Net cash used for investing activities -

Cash flow from financing

activities:

Initial Capital investment -

Withdrawals 25,511
Net cash used for financing activities 25,511

NET CASH FLOW 141,119

195,4
Cash, beginning             75
336,5
Cash, Ending             94

PutoShop
STATEMENT OF FINANCIAL POSITION
For the year end December 31 , 2020

Current Assets Note

Cash 4 P514,155
Prepaid Rent 24,000
Inventory 5 128,548

77
 Total Current Assets   P666,703

Noncurrent
Assets
Property and Equipment  6 271,054
Total Noncurrent Assets   271,054

TOTAL
ASSETS     937,757

Current
Liabilities
Withholding Tax Payable 6,619
Percentage Tax Payable 14,307
Accrued Payable 7 9,028
Income Tax Payable 36,233
Total Current Liabilities   P66,187

Owner's Equity
Ravina, Capital   P871,570

TOTAL LIABILITIES AND

OWNER'S EQUITY   P937,757

See accompanying notes to financial statement.

PutoShop
STATEMENT OF COMPREHENSIVE INCOME
For the year end December 31 , 2020

Note

Sales 8 1,907,629

Cost of Goods Sold   9 1,117,892

78
Gross Profit 789,737

Less: Operating Expenses   10 581,071

Earnings before Tax 208,666

Less: Income Tax   36,233

Net Income   172,433

See accompanying notes to financial statement.

PutoShop
STATEMENT OF OWNER’S EQUITY
For the year end December 31 , 2020

Capital, beginning 733,624

79
Net Income 172,433

Withdrawals 34,487

Capital, ending   P871,570

PutoShop
STATEMENT OF CASH FLOWS
For the year end December 31 , 2020

Cash Flow from operating

activities:
1,90
Cash received from customer 7,629
Less: Cash payment for purchases 736,

80
 merchandise 324
Cash payment for operating 959,
expenses 257
Net cash provided by operating activities 212,048

Cash flow from investing

activities:
Cash paid for construction of
building -
Cash paid for purchase of
equipment -

Cash paid for furniture and fixture -

Net cash used for investing activities -

Cash flow from financing

activities:

Initial Capital investment -

3
Withdrawals 4,487
Net Cash used for financing activities 34,487

NET CASH
FLOW 117,561
336,5
Cash, beginning             94
Cash, Ending             514,155

PutoShop
STATEMENT OF FINANCIAL POSITION
For the year end December 31 , 2021

Current Assets Note

Cash 4 P731,102
Prepaid Rent 24,000
Inventory 5 136,470

81
 Total Current Assets   P891,752

Noncurrent
Assets
Property and Equipment  6 240,955
Total Noncurrent Assets   240,955

TOTAL
ASSETS     1,132,528

Current
Liabilities
Withholding Tax Payable 6,799
Percentage Tax Payable 15,183
Accrued Payable 7 9,360
Income Tax Payable 55,769
Total Current Liabilities   P87,112

Owner's Equity
Ravina, Capital   P631,580

TOTAL LIABILITIES AND

OWNER'S EQUITY   P1,132,528

See accompanying notes to financial statement.

PutoShop
STATEMENT OF COMPREHENSIVE INCOME
For the year end December 31 , 2021

Note

Sales 8 2,024,461

Cost of Goods Sold   9 1,163,115

82
Gross Profit 861,347

Less: Operating Expenses   10 588,270

Earnings before Tax 273,076

Less: Income Tax   55,769

Net Income   217,307

See accompanying notes to financial statement.

PutoShop
STATEMENT OF OWNER’S EQUITY
For the year end December 31 , 2021

Capital, beginning 871,570

Net Income 217,307

Withdrawals 43,461

Capital, ending   P1,045,416

PutoShop
STATEMENT OF CASH FLOWS
For the year end December 31 , 2021

Cash Flow from operating

activities:
2,024,
Cash received from customer 461
Less: Cash payment for purchases merchandise 781,2

83
 51
Cash payment for operating 982,8
expenses 01
Net cash provided by operating
activities 260,409

Cash flow from investing

activities:
Cash paid for construction of
building -
Cash paid for purchase of
equipment -
Cash paid for furniture and
fixture -

Net cash used for investing activities -

Cash flow from financing

activities:
Initial Capital
investment -
43,
Withdrawals 461
Net Cash Flow provided financing
activities 43,461

NET CASH FLOW 216,497

51
Cash, beginning             4,155
73
Cash, Ending             1,102

Notes to Financial Statement

Note 1- Profile of the Business

The business will be registered in Department of Trade under the name of

PutoShop. Ms. Angelita Ibarita, Ivy Jaron, and Alona Mae Villarmea will be the

84
registered partners of the business. The shop offers superior quality of meat. A shop to

step in that allow for those with even the smallest budget to eat premium quality meat.

The business is located at Colon Steet, barangay Kalubihan, Cebu City, and a place that is

more convenient for the customer.

Note 2-Basis of Preparation

Statement of Compliance

The financial statements have been prepared in accordance with Philippine Financial

Reporting Standards for Small and Medium-sized Entities (PFRS for SMEs).

Basis of Measurement The

financial statements have been prepared on the historical cost basis.

Functional and Presentation Currency

The financial statements are presented in Philippine peso, the company's functional

currency. All information presented in Philippine peso has been rounded off to the

nearest peso, unless otherwise specified.

Operating Lease Commitments

The Company has leased land from third party under the operating lease arrangements.

The Company has determined that all significant risks and rewards of ownership of the

land remain with the lessor.

85
Estimating Useful lives of PPE

The Company estimates useful lives of PPE based on the period over which the assets are

expected to be available for use.

Note 3-Summary of Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods

presented in these financial statements unless otherwise indicated.

Cash

Cash includes cash on hand, petty cash fund and cash in bank.

PPE

PPE are initially measured at cost less any subsequent accumulated depreciation and

impairment losses, if any. The cost of an asset includes purchase price and any directly

attributable cost of bringing the asset to the location and condition for its intended use.

Depreciation is computed using the straight-line method over the asset's estimated useful

lives ranging from 5-10 yrs.

Revenue and Cost Recognition

When the outcome of the transaction can be reliably estimated, revenue from services

rendered is recognized in income statement at the reporting date.

Cost and Expense Recognition

86
Cost and Expenses are recognized when decreases in future economic benefits related to

the decrease of asset or increase in liability has arisen that can be measured reliably. Cost

and expenses are recognized in the income statement upon utilization of the service or at

the date they incurred.

Note 4-Cash

Cash includes the following components

as of December 31

  2018 2019
Petty cash
fund P 5,000 P 5,000
Cash on
hand P 10,000 P 10,000
Cash on
bank P55 200 P 155 420
Total P70 200 P 170 420

Inventory includes the following

components
Note 5 - Inventory

2018 2019
Materials - Jan 01 P---- P----
P188
Purchases   301   P254 114    
Materials Available P188
for use 304 P254 114
P154
Materials Used   669   P184 101    
Materials - Dec 31   P33 635   P70 013    

87
Note 6-Property and Equipment

PPE includes the following components

2018
Leasehold Furniture Store Other
Improvement and Equipmen Fixed Total
s Fixtures t Assets
Cost P187 304 P 46 909 P75 060 P65 560 P374 833
Accumulated
Depreciation
Beginning Balance
Depreciation for
the year P15 609 P4 691 P7 506 P6 556  
Total P15 609 P4 691 P7 506 P6,556  P34 362
Carrying Amount P171 695 P42 218 P67 554 P59 004 P340 471

2019
Leasehold Furniture Other
Store
Improvement and Fixed Total
Equipment
s Fixtures Assets

88
 Cost P87 304 P46 909 P7 506 P65,560 P--------
Accumulated
Depreciation
Beginning
Balance P15 609 P4 691 P7 506 P6 556 -------
Depreciation for
the year P15 609 P4 691 P7 506 P6 556 -------
Total P31 218 P9 382 P15 012 P13 112 68 724
Carrying Amount 156 086 37 527 60 048 52 448 306 109

Note 7- Accrued Payable

2018 2019
Utilities
Payable P 4 300 P 4 500
SSS P5 610 P5 610
Philhealth P1 650 P1 650
Pag-ibig P1 200 P 1 200

Total P12 760 P12 960

Note 8- Sales

Goods 2018 2019

Chocolate 216 000 324 000
Original 216 000 324 000
Strawberr 216 000 324 000
y
Ube 216 000 324 000
Vanilla 216 000 324 000 Note 9- Cost of Goods Sold
Cheese 216 000 324 000
Caramel 216 000 324 000
2018 2019
Buko 216 000
Materials ,Beg 324 000
Pandan
Purchases
Total  
1 512 000 188 304000
2 268 254 114
Materials Available for
use 188 304 254 114

Materials, End   33 635   70 013

Direct Materials Used 154 669 683,761

89
 Direct Labor 201 480 343,008
Factory Overhead   14 300  
46,141
Goods Available For Sale
370 449 1,072,910
Finished Goods, End  
- -
Cost of Goods
Sold 370 449 399 881

Note 10-Operating Expense

2018 2019

Salaries and Wages 604 476 604 476

Utilities Expense 51 600 53 200
Rent Expense 120 000 120 000
Supplies Expense 3 256 3 515
Advertising 10 000
SSS,Philhealth, & Pag-ibig
Contribution 37 500 37 500
Marketing and Promotions 5 000 -
Percentage Tax 47 376 50 563
Taxes and Licenses 3 950 -
Depreciation Expense     6 556 6,556  
Total         889 714 875 810  
Note 11
- Taxes, Licenses and Fees
This account consists of the
following:

Business Permit & Clearances 2,200.00

DTI Registration 515.00

90
 Sanitary Permit 250.00

Barangay Clearance 500.00

Annual Registration Fee
  (BIR)       500.00

  Total   -   3,950.00

CHAPTER VI

SOCIO – ECONOMIC STUDY

INTRODUCTION

91
 This study talks about the lifestyle and characteristics of a person living in

a society. Every study has a goal to be profitable and also to help the community.

It affects the way in which a person lives. It attempts to determine the economic

impacts on society or in Gross National Product. The objective of this study is to

know how the proposed business will make a difference to the employer,

employee, government and the environment.

Government Revenues

Taxes are the life blood of one’s country. The business benefaction as to

the government is remitting taxes to support its missions to derive better

government salaries and developing government services. Our government can

collect more taxes in order for them to make new projects for public use and to

improve our country. The revenues from the licenses, permits & other duties paid

by the owner of the enterprise of their newly opened business will have its

contribution that directly received by the government.

Competitors

The competitors play a significant role in a business society. A business man

should identify its competitors. A competitor has a important role in determining

the best quality of services they offer. It will help our business in knowing how we

can have advantages compared to them and the things they don’t have.

92
Community

Establishing a new business in the community will be a great help in the

economic condition of society because it can reduce the high unemployment rate

for it can generate income & implement job & services for those who are

unemployed. In addition, the services they offer will help to supply the needs &

wants of the people in the community.

Customers

Costumer is the lifeblood of the business. Satisfaction of the customers is the

basic objective of the projected business because it's the customers who create

demand for services. Employees are well-trained in providing outstanding

customer service.

Employees

The proposed business is not only to grow the income of the owner but it could

also provide jobs and opportunities to those people who are really in need. Our

business needs four employees that would help provide services to the

customers. Employees will generate income through rendering service in which

they will be paid through wages, salaries and also benefits depending on how

their services rendered

Employer

93
The objective of the business is to achieve high income. The business will be

helpful in determining the firmness and flaws of the employer. It will also give

benefit and convenience as to employer-employee relationship.

Waste and Waste Disposal

Proper disposal of wastes should be observed in order to keep a clean, safe and

healthy environment. The wastes that are accumulated from business shall be

collected by a garbage truck provided by the barangay.

Documentation and Forms

94
95
96
97
98
Curriculum Vitae

JOSHUA JAMES R. CABINAS

PERSONAL BACKGROUND

AGE: 19
SEX: MALE
CIVIL STATUS: Single
BIRTHDATE: April 13, 2000
ADDRESS: Camp 7 Minglanilla, Cebu
RELIGION: Roman Catholic
NATIONALITY: Filipino
CONTACT NUMBER 0977 326 4410
E-MAIL ADDRESS: jjrcabinas@gmail.com

EDUCATIONAL BACKGROUND

SENIOR HIGH SCHOOL: ACAD-ABM

ASIAN COLLEGE OF TECHNOLOGY –
INTERNATIONAL EDUCATIONAL FOUNDATION
S.Y. 2018-2019
JUNIOR HIGH SCHOOL: JUAN SUMULONG HIGH SCHOOL

99
 JOYCE MARIE G. ESDRELON

PERSONAL BACKGROUND

AGE: 19
SEX: FEMALE
CIVIL STATUS: Single
BIRTHDATE: November 3, 1999
ADDRESS: 179-C. Padilla Street, Cebu City
RELIGION: Roman Catholic
NATIONALITY: Filipino
CONTACT NUMBER 0942 377 1010
E-MAIL ADDRESS: joyce.esdrelon123@gmail.com

EDUCATIONAL BACKGROUND

SENIOR HIGH SCHOOL: ACAD-ABM

ASIAN COLLEGE OF TECHNOLOGY –
INTERNATIONAL EDUCATIONAL FOUNDATION
S.Y. 2018-2019
JUNIOR HIGH SCHOOL: DON CARLOS A GOTHONG MEMORIAL NATIONAL
HIGH SCHOOL

100
 ANGELITA IBARITA
PERSONAL BACKGROUND

AGE: 19
SEX: FEMALE
CIVIL STATUS: Single
BIRTHDATE: March 13, 2000
ADDRESS: Bonbon,Cebu City
RELIGION: Roman Catholic
NATIONALITY: Filipino
CONTACT NUMBER 0935 379 3054
E-MAIL ADDRESS: angelitaibarita@yahoo.com

EDUCATIONAL BACKGROUND

SENIOR HIGH SCHOOL: ACAD-ABM

ASIAN COLLEGE OF TECHNOLOGY –
INTERNATIONAL EDUCATIONAL FOUNDATION
S.Y. 2018-2019
JUNIOR HIGH SCHOOL: BONBON NATIONAL HIGH SCHOOL

101
 IVY JARON
PERSONAL BACKGROUND

AGE: 18
SEX: FEMALE
CIVIL STATUS: Single
BIRTHDATE: June 14, 2000
ADDRESS: Basak Pardo, Cebu City
RELIGION: Roman Catholic
NATIONALITY: Filipino
CONTACT NUMBER 09** *** ****
E-MAIL ADDRESS: ivyjaron123@gmail.com

EDUCATIONAL BACKGROUND

SENIOR HIGH SCHOOL: ACAD-ABM

ASIAN COLLEGE OF TECHNOLOGY –
INTERNATIONAL EDUCATIONAL FOUNDATION
S.Y. 2018-2019
JUNIOR HIGH SCHOOL: DON VICENTE RAMA MEMORIAL NATIONAL HIGH
SCHOOL

102
 RIA JANE RICO
PERSONAL BACKGROUND

AGE:
SEX: FEMALE
CIVIL STATUS: Single
BIRTHDATE:
ADDRESS:
RELIGION: Roman Catholic
NATIONALITY: Filipino
CONTACT NUMBER
E-MAIL ADDRESS: @gmail.com

EDUCATIONAL BACKGROUND

SENIOR HIGH SCHOOL: ACAD-ABM

ASIAN COLLEGE OF TECHNOLOGY –
INTERNATIONAL EDUCATIONAL FOUNDATION
S.Y. 2018-2019
JUNIOR HIGH SCHOOL:

103
 ALONA MAE VILLARMEA
PERSONAL BACKGROUND

AGE: 17
SEX: FEMALE
CIVIL STATUS: Single
BIRTHDATE: April 28, 2001
ADDRESS: Pangilatan, Inayagan City of Naga
RELIGION: Roman Catholic
NATIONALITY: Filipino
CONTACT NUMBER 0965 7706 6120
E-MAIL ADDRESS: alonamaevillarmea@gmail.com

EDUCATIONAL BACKGROUND

SENIOR HIGH SCHOOL: ACAD-ABM

ASIAN COLLEGE OF TECHNOLOGY –
INTERNATIONAL EDUCATIONAL FOUNDATION
S.Y. 2018-2019
JUNIOR HIGH SCHOOL: INAYAGAN NATIONAL HIGH SCHOOL

104