COMPANY NAME


The proponents decided to come up with the company
name “Décor”. The company top priority is to satisfy
and give the best that it can give to the customer’s
home while maximizing its beauty, durability and its
use.
Our initial assumption on our company name “Décor”
stands for “Decorative Corners” ensuring that the
company stand strong to its principles toward giving a
high quality and luxury experience on every corners of
your home.
 COMPANY VISION

Décor aims to be the most preferred furniture
manufacturer offering innovative and
superior quality products at affordable prices
around Pampanga
 COMPANY MISSION

Décor is committed to provide its customers with a wide range of
selection for household furniture at affordable prices and durable
quality.

The Company value the support and cooperation of its employees,

suppliers, and community leaders. We appreciate the wave of
foreign and domestic competition and encourage FAIR play in
marketing and product innovations.

The company recognizes the consumer’s value for money and will
see to it that they deserve the best for every peso. We offer
alternatives for Customer having difficulty in understanding the
true function and cost of our product.

TRUST is our intimate passion, QUALITY SERVICE is our regular

guidance and SATISFIED CUSTOMER is our pride and shining
armour.
 ORGANIZATIONAL
MANAGEMENT THEORY

 The DECOR aims to establish the Organizational
Management Theory Z as it leads to improvements in
organizational performance. As an organization that strives
to be the preferred furniture manufacturer that provides
innovative and superior quality and affordable products,
the proponents’ management is one of the vital factors to
achieve this high level of excellence that we envision.

 This management approach focuses on long-term working

relationship with the employees as they will have some
trainings, seminars, and career development to the workers.
Aside from this, their jobs are assured and secured to feel
more motivated to work in our organization.
 FORM OF BUSINESS
ORGANIZATION

The form of business organization of the proposed
Décor is GENERAL PARTNERSHIP. It is where all
partners have responsibility for the business and
unlimited liability for business debts. Partners will have
an agreement to further define the rights,
responsibilities and duties for each partner. Also, they
should contribute capital, property, skills, labor or most
any kind of involvement with the business. In return,
each general partner shares the business profits
according to their agreement.
MANAGEMENT POLICIES
(INTERNAL CONTROL)

 Cashier shall report all the cash receipts and
disbursements to the general manager every
transactions.
 Remittance made by the cashier to the general manager
must be reported to the top management every month
 Delivery of the purchased furniture must be
accompanied by one of the owner
 The responsibility of safeguarding of inventory fall
upon to the Production Head
 Each wood is listed before sent to the production for
furniture manufacturing process.
 COMPENSATION AND
BENEFITS

Employee Daily Schedule
Employees Work Hours Time In Break Time Out Rest Day
General Manager Flexi Time
Accountant On Call
Marketing Staff 8 hours 8:00 AM 12:00 NN TO 1:00 PM 5:00 PM Sunday
Production Head 8 hours 8:00 AM 12:00 NN TO 1:00 PM 5:00 PM Sunday
Cashier 8 hours 8:00 AM 12:00 NN TO 1:00 PM 5:00 PM Sunday
Production Worker 8 hours 8:00 AM 12:00 NN TO 1:00 PM 5:00 PM Sunday
Security Guard 8 hours 8:00 AM 12:00 NN TO 1:00 PM 5:00 PM Sunday
 Employee Weekly Schedule
Employees Monday Tuesday Wednesday Thursday Friday Saturday Sunday
General Manager
Accountant
Marketing Staff
Production Head
Cashier
Production Worker
Security Guard

Note: This table shows the working days and rest day for the employees of DÉCOR COMPANY.

Legend: Flexi Time

On Call
Employee Working Days
Rest Day
 Employees Salaries
Number of
Employees Daily Regular Rate Operating days in Monthly Salary
a Month
General Manager Not Applicable Fixed Monthly Salary ₱ 22,360.00
Marketing Staff ₱ 650.00 26 days ₱ 16,900.00
Production Head ₱ 650.00 26 days ₱ 16,900.00
Cashier ₱ 480.00 26 days ₱ 12,480.00
Production Worker ₱ 430.00 26 days ₱ 11,180.00
Security Guard ₱ 410.00 26 days ₱ 10,660.00

Professional Fees
Accountant ₱ 8,000.00 per month
 Employee Benefits
Holiday Pay
Additional 100% based
A. If Regular Holiday on the regular wage
Additional 30% based
B. If Special Holiday on the regular wage
Service Incentive Leave
A. Maternity Leave
*normal delivery 60 days
*caesarean section
delivery 78 days
B. Paternity Leave 7 days
C. Sick/Vacation Leave 10days
Overtime Pay
Additional 25% based
on the regular wage x
A. If regular day
number of hrs. in excess
of 8 hours
Addition 30% based on
the regular wage x
B. If rest day
number of hrs. in excess
of 8 hours
Cost of Living Allowance 1,000 per month
1 month salary based on
13th Month Pay the number of months
in service
Based on the
SSS, PHIC, HDMF
contribution table
Range of monthly income:
5,001 – 10,000 20,001 – 30,000 40,001 or more
10,001 – 20,000 30,001 – 40,000 Other please specify:______

Do you buy furniture?

Yes
No

If yes, what was your last household furniture purchase?

Bathroom Furniture Doors

Bedroom Furniture Living Room Furniture
Cabinet Kitchen Furniture
Children’s Furniture Other, please specify:_____
Dining Furniture

How much did you spend with your last household furniture purchase?
5,001 – 10,000 20,001 – 30,000 40,001 or more
10,001 – 20,000 30,001 – 40,000 Other please specify:______
What it is made of?
Leather
Metal
Wood
Other please specify: _______
Name the furniture shop where you usually buy?
1.
2.
3.

Thinking about how you usually shop for household furniture, please select a
category that best describes your level of agreement with the following statements
about the furniture stores where you consider shopping.
I am very loyal to specific furniture stores
I look at many furniture stores before I choose where to purchase
I am very loyal to specific brands of furniture
I would like to be able to purchase an entire room of furniture as a package
I prefer to shop for furniture at discount stores

Are you willing to purchase to our furniture shop?

Yes
No
If yes, how much is your budget?
5,001 – 10,000 20,001 – 30,000 40,001 or more
10,001 – 20,000 30,001 – 40,000 other please specify: _____

When deciding to purchase household furniture, what factor you consider most
when purchasing furniture?
Price
Design
Quality
Texture
Brand
Delivery
Table 1: Historical Number of Household in Angeles City
No. of Household Household Growth Historical number of
Year
last year Rate (1.021%) Household this year
2014 74,510 761 75,271
2015 75,271 769 76,040
2016 76,040 776 76,816
2017 76,816 784 77,600
2018 77,600 792 78,392

Table 2: Projected Growth of Household

No. of Household Household Growth Projected number of
Year
last year Rate (1.021%) Household this year
2019 78,392 800 79,192
2020 79,192 809 80,001
2021 80,001 817 80,818
2022 80,818 825 81,643
2023 81,643 834 82,476
Table 3: Yearly Consumption Rate
Number of
Consumption Basis Frequency YCR
Participants
3 - 5 Years 55 0.25 13.75
6 - 10 Years 73 0.125 9.125
More than 10 years 91 0.1 9.10
TOTAL 219 31.98
Average Yearly
0.15
Consumption Rate
Table 4: Historical Demand of Furnitures
Year 2014 2015 2016 2017 2018
Target number of
75,271 76,040 76,816 77,600 78,392
Households
% of people buys
88% 88% 88% 88% 88%
furnitures
% of people who buys
furniture in a furniture 83% 83% 83% 83% 83%
shop
Willing to buy to our
79% 79% 79% 79% 79%
Furniture Shop
Projected Target Market 43,433 43,876 44,324 44,776 45,233
AYCR 0.15 0.15 0.15 0.15 0.15
Demand per year 6,515 6,581 6,649 6,716 6,785
Table 5: Computation for the Projected Demand
Demand for the last year
6,785
(2018)
Less:
Demand for the first year
6,515
(2014)
Total Demand 270
Divided by:
4 years (2014-2018) 4
Increase per year 68

Table 6: Projected Demand

Previous year Projected Demand for
Projected years Increase per year
demand Furnitures
2019 6,785 68 6,853
2020 6,853 68 6,920
2021 6,920 68 6,988
2022 6,988 68 7,055
2023 7,055 68 7,123
Table 7: Historical Supplies of Furnitures
Competitors 2014 2015 2016 2017 2018
155 Furniture Shop 1,099 1,128 1,157 1,188 1,219
Evergold Furniture Shop 1,007 1,033 1,060 1,088 1,117
Diamond Plaza Home
790 811 832 854 876
Furnishing
1903 Furniture 551 565 580 595 611
Family Furniture Center 530 543 558 572 587
Total Supplies 3,975 4,080 4,187 4,297 4,410

Table 8: Computation for the Projected Supplies

Computation for the Projected Supply
Supply for 2018 4,410
Less:
Supply for 2014 3,975
Total 435
Divided by 4 years 4
Increase per year 109
Table 9: Computation of Projected Supply
Previous Year
Projected Years Increase Per Year Projected Supply
Supply
2019 4,410 109 4,519
2020 4,519 109 4,628
2021 4,628 109 4,737
2022 4,737 109 4,845
2023 4,845 109 4,954

Table 10: Summary of Historical Demands and Supplies

Consumer without
Year Demand Supply Margin of error D-S Gap
Loyalty Brand(%)
2014 6,515 3,975 254 2,286 35.08
2015 6,581 4,080 250 2,251 34.21
2016 6,649 4,187 246 2,215 33.32
2017 6,716 4,297 242 2,177 32.42
2018 6,785 4,410 237 2,137 31.50
Table 11: Summary of Projected Demand and Supply
Consumer without
Year Demand Supply Margin of error D-S Gap
Loyalty Brand(%)
2018 6,853 4,519 233 2,100 30.65%
2019 6,920 4,628 229 2,063 29.81%
2020 6,988 4,737 225 2,026 28.99%
2021 7,055 4,845 221 1,989 28.19%
2022 7,123 4,954 217 1,952 27.40%
Table 12: Competitors Market share
List of Competitors 2018 Supply % of Market share
155 Furniture Shop 1,219 27.64%
Evergold Furniture Shop 1,117 25.32%
Diamond Plaza Home
876 19.87%
Furnishing
1903 Furniture 611 13.85%
Family Furniture Center 587 13.32%
Total 4,410 100.00%

Table 13: Historical Estimated Customers

Historical Estimated
Historical D-S Gap % of Marketshare
Customers
2018 2,137 5.00% 107
Table 14: Projected Customers for the Furniture Shop
Projected
Historical Estimated Increase in Estimated
Projected Years % Increase Customers for
Customers Customers
the Year
2019 107 5% 5 112
2020 112 5% 6 118
2021 118 5% 6 124
2022 124 5% 6 130
2023 130 5% 6 136
Table 15: Projected Maket share
Projected Customers
Year Projected Supply Total Supply Marketshare
for the Year
2019 4,519 112 4,631 2.42%
2020 4,628 118 4,746 2.48%
2021 4,737 124 4,860 2.55%
2022 4,845 130 4,975 2.61%
2023 4,954 136 5,090 2.68%
 Furniture Shops around Projected Supplies
our Location 2019 2020 2021 2022 2023
155 Furniture Shop 1,249 1,279 1,309 1,339 1,369
Evergold Furniture Shop 1,144 1,172 1,199 1,227 1,254
Diamond Plaza Home
Furnishing 898 920 941 963 984
1903 Furniture 626 641 656 671 686
Family Furniture Center 602 616 631 645 660
Total Supplies 4,519 4,628 4,737 4,845 4,954
% of Competitors Total
Supply estimated to
2.42% 2.48% 2.55% 2.61% 2.68%
Provide (Based on
Market Share)
Total Supply to
provide every year for
109 115 121 127 133
the furniture shops
around our Location
 1st Day 2nd Day 3rd Day 4th Day 5th Day 6th Day 7th Day 8th Day
Preparing of Raw Materials
Cutting
Smoothing
Curving
Assembling
Finishing
Packaging
Delivery

 WASTE DISPOSAL

 In the world of business, practice of proper waste of
disposal play important role for ensuring the safety
of product, workers, and for community. By this
practice, it helps in the protection of the
environment. Décor waste of materials can produce
other income by selling it to the smoked –fish
vendor, pet shop and chicharon maker which can be
use as alternatively when cooking.
 DÉCOR COMPANY Initial Investment by all Partners
INITIAL PROJECT COSTS Cabrera,Capital ₱ 230,000.00
Gicale,Capital 230,000.00
Items Total Costs
Lobo,Capital 230,000.00
Inventory ₱ 14,357.59 Lopez,Capital 230,000.00
Supplies 19,330.78 Padilla,Capital 230,000.00
Prepaid Rent 60,000.00 Tiglao,Capital 230,000.00
Prepaid Input Tax 31,390.85 Total ₱ 1,380,000.00
Prepaid Expenses 22,929.00 Initial Investment by all Partners ₱ 1,380,000.00
Leasehold Improvement 850,000.00 Less: Initial Project Costs 1,223,052.18
Cash after Initial Project Costs ₱ 156,947.82
Furniture and Fixtures 56,516.96
Office Equipment 56,516.96
Auxiliary Equipment 64,268.97
Production Equipment 47,741.07
Total Initial Project Costs ₱ 1,223,052.18
 
DÉCOR COMPANY
Projected Income Statement
For the year ended 2019 - 2023
2019 2020 2021 2022 2023
Sales ₱ 5,474,285.71 ₱ 5,853,357.14 ₱ 6,196,435.71 ₱ 6,568,878.57 ₱ 6,882,828.57
Cost of Goods Sold 2,874,104.69 3,124,873.17 3,290,426.22 3,468,792.72 3,635,543.20
Gross Profit 2,600,181.03 2,728,483.97 2,906,009.49 3,100,085.85 3,247,285.38
Operating Expenses 1,855,622.38 1,881,619.54 1,956,305.79 1,992,294.67 2,071,440.23
Operating Profit 744,558.65 846,864.43 949,703.70 1,107,791.19 1,175,845.14
Add: Other Income 8,400.00 10,800.00 13,200.00 15,600.00 18,000.00
Total 752,958.65 857,664.43 962,903.70 1,123,391.19 1,193,845.14
Income Tax (30%) 225,887.59 257,299.33 288,871.11 337,017.36 358,153.54
Net Income ₱ 527,071.05 ₱ 600,365.10 ₱ 674,032.59 ₱ 786,373.83 ₱ 835,691.60
 PROJECTED OPERATING EXPENSES
For the year ended 2019 - 2023
Items 2019 2020 2021 2022 2023
Supplies Expenses ₱ 80,222.72 ₱ 84,233.86 ₱ 88,445.55 ₱ 92,867.83 ₱ 97,511.22
Rent Expense (20%) 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
Utilities Expenses (20%) 3,679.60 24,189.48 25,398.95 26,668.90 28,002.35
Marketing Expenses 25,625.00 7,481.25 27,892.81 8,248.08 30,393.08
Salaries Expenses (Gross Pay) 951,600.00 975,390.00 999,774.75 1,024,769.12 1,050,388.35
SSS,PHIC and HDMF Contributions Expenses (Employer's
Share) 211,308.00 216,590.70 222,005.47 227,555.60 233,244.49
Professional Fees 96,000.00 96,000.00 96,000.00 96,000.00 96,000.00
Employee Benefits (COLA) 108,000.00 118,800.00 129,600.00 140,400.00 151,200.00
Other Expenses 42,000.00 44,100.00 46,305.00 48,620.25 51,051.26
Gasoline 14,400.00 15,120.00 15,876.00 16,669.80 17,503.29
Uniforms Expenses 4,000.00 - - - -
Delivery Expenses (Rent of Truck) 35,000.00 36,750.00 38,587.50 40,516.88 42,542.72
13th Month Pay 135,200.00 138,580.00 142,044.50 145,595.61 149,235.50
Doubtful Accounts Expense 1,368.57 94.77 85.77 93.11 78.49
Depreciation Expense - Leasehold Improvement 56,666.67 56,666.67 56,666.67 56,666.67 56,666.67
Depreciation Expense - Office Equipment 5,651.70 5,651.70 5,651.70 5,651.70 5,651.70
Depreciation - Expense - Auxiliary Equipment 8,033.62 8,033.62 8,033.62 8,033.62 8,033.62
Depreciation Expense - F & F 5,937.50 5,937.50 5,937.50 5,937.50 5,937.50
Organizational Costs 22,929.00 - - - -

Total Operating Expenses ₱ 1,855,622.38 ₱ 1,881,619.54 ₱ 1,956,305.79 ₱ 1,992,294.67 ₱ 2,071,440.23

 DÉCOR COMPANY
Projected Statement of Changes in Partners Equity
For the year ended 2019 - 2023
Name of the Partners
Initial Investment `
Cabrera, Capital Gicale, Capital Lobo, Capital
₱ 230,000.00 ₱ 230,000.00 ₱ 230,000.00 ₱
Lopez, Capital Padilla, Capital
230,000.00 ₱ 230,000.00 ₱
Tiglao, Capital
230,000.00
Beginning Capital - - - - - -
Total Partner's Capital 230,000.00 230,000.00 230,000.00 230,000.00 230,000.00 230,000.00
Add: Share in Net Income 87,845.18 87,845.18 87,845.18 87,845.18 87,845.18 87,845.18
Less: Partner's Withdrawal 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Ending Capital 2019 ₱ 242,845.18 ₱ 242,845.18 ₱ 242,845.18 ₱ 242,845.18 ₱ 242,845.18 ₱ 242,845.18
Add: Share in Net Income 100,060.85 100,060.85 100,060.85 100,060.85 100,060.85 100,060.85
Less: Partner's Withdrawal 85,000.00 85,000.00 85,000.00 85,000.00 85,000.00 85,000.00
Ending Capital 2020 ₱ 257,906.03 ₱ 257,906.03 ₱ 257,906.03 ₱ 257,906.03 ₱ 257,906.03 ₱ 257,906.03
Add: Share in Net Income 112,338.76 112,338.76 112,338.76 112,338.76 112,338.76 112,338.76
Less: Partner's Withdrawal 95,000.00 95,000.00 95,000.00 95,000.00 95,000.00 95,000.00
Ending Capital 2021 ₱ 275,244.79 ₱ 275,244.79 ₱ 275,244.79 ₱ 275,244.79 ₱ 275,244.79 ₱ 275,244.79
Add: Share in Net Income 131,062.31 131,062.31 131,062.31 131,062.31 131,062.31 131,062.31
Less: Partner's Withdrawal 105,000.00 105,000.00 105,000.00 105,000.00 105,000.00 105,000.00
Ending Capital 2022 ₱ 301,307.10 ₱ 301,307.10 ₱ 301,307.10 ₱ 301,307.10 ₱ 301,307.10 ₱ 301,307.10
Add: Share in Net Income 139,281.93 139,281.93 139,281.93 139,281.93 139,281.93 139,281.93
Less: Partner's Withdrawal 115,000.00 115,000.00 115,000.00 115,000.00 115,000.00 115,000.00
Ending Capital 2023 ₱ 325,589.03 ₱ 325,589.03 ₱ 325,589.03 ₱ 325,589.03 ₱ 325,589.03 ₱ 325,589.03
 DÉCOR COMPANY
PROJECTED STATEMENT OF FINANCIAL POSITION
As of 2019 - 2023
ASSETS Pre - Operating 2019 2020 2021 2022 2023
Current Assets
Cash ₱ 156,947.82 ₱ 389,563.21 ₱ 564,539.80 ₱ 759,622.75 ₱ 1,013,481.29 ₱ 1,247,260.20
Accounts Receivable - net realizable value - 135,488.57 144,870.59 153,361.78 162,579.74 170,350.01
Inventory 14,357.59 122,682.20 139,477.51 140,237.78 140,285.87 143,762.66
Supplies 19,330.78 20,297.32 21,312.18 22,377.79 23,496.68 24,671.51
Prepaid Rent 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00
Prepaid Input Tax 31,390.85 - - - - -
Prepaid Expenses 22,929.00 - - - - -
Total Current Assets 304,956.03 728,031.30 930,200.08 1,135,600.11 1,399,843.58 1,646,044.38
Non - Current Assets
Leasehold Improvement 850,000.00 793,333.33 736,666.67 680,000.00 623,333.33 566,666.67
Furniture and Fixtures 56,516.96 50,579.46 44,641.96 38,704.46 32,766.96 26,829.46
Office Equipment 56,516.96 50,865.27 45,213.57 39,561.88 33,910.18 28,258.48
Auxiliary Equipment 64,268.97 56,235.35 48,201.73 40,168.11 32,134.49 24,100.86
Production Equipment 47,741.07 42,966.96 38,192.86 33,418.75 28,644.64 23,870.54
Total Non Current Assets 1,075,043.97 993,980.38 912,916.79 831,853.20 750,789.61 669,726.01
Total Assets ₱ 1,380,000.00 ₱ 1,722,011.68 ₱ 1,843,116.87 ₱ 1,967,453.30 ₱ 2,150,633.19 ₱ 2,315,770.40

LIABILITIES
Current Liabilities
Utilities Payable - 3,066.33 20,157.90 21,165.80 22,224.08 23,335.29
SSS, PHIC and HDMF Contribution Payable - 30,391.00 31,150.78 31,929.54 32,727.78 33,545.98
Income Tax Payable - 56,471.90 64,324.83 72,217.78 84,254.34 89,538.39
Accounts Payable - 175,011.40 180,047.20 190,671.44 203,584.40 215,816.57
Total Liabilities - 264,940.63 295,680.71 315,984.56 342,790.61 362,236.22

PARTNER'S EQUITY
Cabrera,Capital 230,000.00 242,845.18 257,906.03 275,244.79 301,307.10 325,589.03
Gicale,Capital 230,000.00 242,845.18 257,906.03 275,244.79 301,307.10 325,589.03
Lobo,Capital 230,000.00 242,845.18 257,906.03 275,244.79 301,307.10 325,589.03
Lopez,Capital 230,000.00 242,845.18 257,906.03 275,244.79 301,307.10 325,589.03
Padilla,Capital 230,000.00 242,845.18 257,906.03 275,244.79 301,307.10 325,589.03
Tiglao,Capital 230,000.00 242,845.18 257,906.03 275,244.79 301,307.10 325,589.03
Total Partner's Equity 1,380,000.00 1,457,071.05 1,547,436.15 1,651,468.74 1,807,842.57 1,953,534.18

TOTAL LIABILITIES AND PARTNERS EQUITY ₱ 1,380,000.00 ₱ 1,722,011.68 ₱ 1,843,116.87 ₱ 1,967,453.30 ₱ 2,150,633.19 ₱ 2,315,770.40
 DÉCOR COMPANY
PROJECTED STATEMENTS OF CASH FLOW
As of 2019 - 2023
2019 2020 2021 2022 2023
Cash Inflows
Cash Sales ₱ 3,832,000.00 ₱ 4,097,350.00 ₱ 4,337,505.00 ₱ 4,598,215.00 ₱ 4,817,980.00
Collection on Accounts Receivable 1,505,428.57 1,746,530.36 1,850,353.75 1,961,352.50 2,056,999.82
Other Income 8,400.00 10,800.00 13,200.00 15,600.00 18,000.00
Output Vat 656,914.29 702,402.86 743,572.29 788,265.43 825,939.43
Total Cash Inflows ₱ 6,002,742.86 ₱ 6,557,083.21 ₱ 6,944,631.04 ₱ 7,363,432.93 ₱ 7,718,919.25

Cash Outflows
Payment for Purchase of Raw Materials 1,925,125.39 2,155,530.64 2,277,433.08 2,430,099.90 2,577,566.65
Payment for supplies 81,189.26 85,248.73 89,511.16 93,986.72 98,686.06
Input Vat 261,759.13 269,497.82 285,308.22 304,439.95 322,618.18
Rent Expense 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00
Utilities Expenses 15,331.67 103,855.83 125,986.88 132,286.22 138,900.53
Salaries (Net Pay) 1,469,016.00 1,505,741.40 1,543,384.94 1,581,969.56 1,621,518.80
Employee Benefits (COLA) 108,000.00 118,800.00 129,600.00 140,400.00 151,200.00
SSS, PHIC and HDMF Contributions (Employer's and
Employees' share) 334,301.00 373,049.53 382,375.76 391,935.16 401,733.54
13th month pay 135,200.00 138,580.00 142,044.50 145,595.61 149,235.50
Professional Fees 96,000.00 96,000.00 96,000.00 96,000.00 96,000.00
Other Expenses 42,000.00 44,100.00 46,305.00 48,620.25 51,051.26
Gasoline 14,400.00 15,120.00 15,876.00 16,669.80 17,503.29
Delivery Expenses (Rent of Truck) 35,000.00 36,750.00 38,587.50 40,516.88 42,542.72
Uniforms 4,000.00 - - - -
Vat Payments 363,764.31 432,905.04 458,264.07 483,825.48 503,321.24
Marketing Expenses 25,625.00 7,481.25 27,892.81 8,248.08 30,393.08
Income Tax Payments 169,415.70 249,446.40 280,978.16 324,980.79 352,869.50
Partner's Withdrawals 450,000.00 510,000.00 570,000.00 630,000.00 690,000.00
Total Cash Outflows 5,770,127.46 6,382,106.63 6,749,548.08 7,109,574.39 7,485,140.34

Net Increase (Decrease) in Cash ₱ 232,615.40 ₱ 174,976.58 ₱ 195,082.95 ₱ 253,858.54 ₱ 233,778.91

Cash Beginning ₱ 156,947.82 ₱ 389,563.21 ₱ 564,539.80 ₱ 759,622.75 ₱ 1,013,481.29

Net Increase (Decrease) in Cash 232,615.40 174,976.58 195,082.95 253,858.54 233,778.91
Cash Ending ₱ 389,563.21 ₱ 564,539.80 ₱ 759,622.75 ₱ 1,013,481.29 ₱ 1,247,260.20
 FINANCIAL RATIOS

2019 2020 2021 2022 2023
Current Ratio
Current Asset 728,031.30 930,200.08 1,135,600.11 1,399,843.58 1,646,044.38
Current Liabilities 264,940.63 295,680.71 315,984.56 342,790.61 362,236.22

Current Ratio 3:1 3:1 4:1 4:1 5:1

It measures the ability of a company to cover its short-term liabilities with its current assets.
Accounts Receivable Turnover
Net Credit Sales ₱ 1,642,285.71 ₱ 1,756,007.14 ₱ 1,858,930.71 ₱ 1,970,663.57 ₱ 2,064,848.57
Average Accounts Receivable 135,488.57 140,179.58 149,116.19 157,970.76 166,464.88

Accounts Receivable Turnover 12 13 12 12 12

It is the number of times per year that a business collects its average accounts receivable.
Inventory Turnover
COGS 2,874,104.69 3,124,873.17 3,290,426.22 3,468,792.72 3,635,543.20
Average Inventory 122,682.20 140,179.58 149,116.19 157,970.76 166,464.88

Inventory Turnover 23 22 22 22 22
It is a ratio how many times a company has sold and replace inventory during a given period.
 Asset Turnover
Sales 5,474,285.71 5,853,357.14 6,196,435.71 6,568,878.57 6,882,828.57
Total Assets 1,722,011.68 1,722,011.68 1,843,116.87 1,967,453.30 2,150,633.19

Asset Turnover 3.18 3.40 3.36 3.34 3.20

It is an efficiency ratio that measures the company's ability to generate sales from its assets.
Equity to Debt Ratio
Total Capital 1,457,071.05 1,547,436.15 1,651,468.74 1,807,842.57 1,953,534.18
Total Liabilities 264,940.63 295,680.71 315,984.56 342,790.61 362,236.22

Equity to Debt Ratio 5:1 5:1 5:1 5:1 5:1

It is a financial ratio indicating the relative proportion of Partner's equity and debt used to finance a company's assets.
Debt Ratio
Total Liabilities 264,940.63 295,680.71 315,984.56 342,790.61 362,236.22
Total Asset 1,722,011.68 1,843,116.87 1,967,453.30 2,150,633.19 2,315,770.40

Debt Ratio 15.39% 16.04% 16.06% 15.94% 15.64%

It is a ratio that indicates the proportion of company's debt to its total assets
Gross Profit Margin
Gross Profit 2,600,181.03 2,728,483.97 2,906,009.49 3,100,085.85 3,247,285.38
Sales 5,474,285.71 5,853,357.14 6,196,435.71 6,568,878.57 6,882,828.57

Gross Profit Margin 47.50% 46.61% 46.90% 47.19% 47.18%

It is a financial metric used to asses a company's financial health and business model by revealing the portion of money left over from sales after accounting for the cost of goods sold.
Operating Profit Margin

Operating Profit 744,558.65 846,864.43 949,703.70 1,107,791.19 1,175,845.14

Sales 5,474,285.71 5,853,357.14 6,196,435.71 6,568,878.57 6,882,828.57

Operating Profit Margin 13.60% 14.47% 15.33% 16.86% 17.08%

It is the ratio of operating profit to net sales, usually presented in percentage.

Net Profit Margin

Net Income 527,071.05 600,365.10 674,032.59 786,373.83 835,691.60

Sales 5,474,285.71 5,853,357.14 6,196,435.71 6,568,878.57 6,882,828.57

Net Profit Margin 9.63% 10.26% 10.88% 11.97% 12.14%

It is the percentage of sales left after all expenses have been deducted from sales.

Return on Assets

Net Income 527,071.05 600,365.10 674,032.59 786,373.83 835,691.60

Average Total Assets 1,551,005.84 1,782,564.28 1,905,285.09 2,059,043.25 2,233,201.79

Return on Assets 33.98% 33.68% 35.38% 38.19% 37.42%

It shows the percentage of how profitable a company's asset are in generating profit.
Return on Capital

Net Income 527,071.05 600,365.10 674,032.59 786,373.83 835,691.60

Average Capital 1,418,535.53 1,502,253.60 1,599,452.45 1,729,655.66 1,880,688.38

Return on Capital 37.16% 39.96% 42.14% 45.46% 44.44%

It measures that an investment generates per capital contributors.
 PAYBACK PERIOD

Payback Period

Initial Investment ₱ 1,380,000.00 Amount Still need to recover

Net Annual Cash flows after Year 1 608,134.65 After Year 1 771,865.35
Net Annual Cash flows after Year 2 1,289,563.34 After Year 2 90,436.66
Net Annual Cash flows after Year 3 2,044,659.52
Net Annual Cash flows after Year 4 2,912,096.94 90,436.66
Net Annual Cash flows after Year 5 3,828,852.13 755,096.18

Payback Period 2.12 years 0.12

2019 2020 2021 2022 2023

Net Income ₱ 527,071.05 ₱ 600,365.10 ₱ 674,032.59 ₱ 786,373.83 ₱ 835,691.60
Add: Non-Cash Expenses (Depreciation Expense) 81,063.59 81,063.59 81,063.59 81,063.59 81,063.59
Net Annual Cash Flows ₱ 608,134.65 ₱ 681,428.69 ₱ 755,096.18 ₱ 867,437.42 ₱ 916,755.19
It is the length of time required to recover the costs of an investment.
 SOCIO ECONOMIC
BENEFITS

Economy
Décor Furniture target to be part of the growing furniture industry that offer
products globally that are acceptable in international standards to promote local furniture
that are made by local skilled workers. It will also help increase job opportunities that
will allow people earn money to finance their needs. Décor furniture support the
economy to decrease unemployment rate.

Philippines(2019) Last Previous Highest Lowest Unit

Unemployment Rate 5.10 5.40 13.90 4.70 percent

Consumers Taxes, Licenses, Fees and other legal expenses
Items Amount
Décor Furniture ensures to Fees and Taxes(Business Permits) ₱ 1,020.00
provide satisfaction for the consumer Community TaxCertificate 150.00
by providing high quality products Barangay Clearance 200.00
Business Tax 4,500.00
and offered at affordable prices. Mayor's Permit Fee 1,000.00
Sanitary Permit 1,540.00
Government Fire Safety Inspection Fee 200.00
Garbage Fee 500.00
Décor Furniture can be a Sanitary Inspection Fee 500.00
benefit to the government by paying Mayor's ID 1,000.00
appropriate taxes which is 30% of Regulatory Fee 1,000.00
Business Plate 175.00
the total income to provide funds to Emission Test 415.00
develop different infrastructure and Insurance 900.00
other government program for the Official Receipt 2,529.00
Stickers 50.00
development and improvement of Environment Fee 3,000.00
the nation. Zoning Clearance 80.00
Certificate of Regitration 1,370.00
SEC Registration 2,000.00
BIR Registration 800.00
Total ₱ 22,929.00
Employees

In establishing the business, employees play a vital role in the business. Décor
Furniture ensures that their employees will be entitled with proper compensation, benefits
and incentives that result for more efficient and productive employees.
Salaries, Direct Labor and Contributions Expenses
Number of Monthly Salary Employee's Share Witholding Employer's Share
Type of Employees Net Pay
Employees (Gross Pay) SSS PHIC HDMF Tax SSS PHIC HDMF
General Manager 1 ₱ 22,360.00 581.30 ₱ 549.99 ₱ 447.20 - ₱ 20,781.51 1,208.70 ₱549.99 ₱447.20
Marketing Staff 1 16,900.00 581.30 549.99 338.00 - 15,430.71 1,208.70 549.99 338.00
Production Head 1 16,900.00 581.30 549.99 338.00 - 15,430.71 1,208.70 549.99 338.00
Cashier 1 12,480.00 454.20 549.99 249.60 - 11,226.21 894.00 549.99 249.60
Production Worker 5 11,180.00 399.70 549.99 223.60 - 10,006.71 820.30 549.99 223.60
Security Guard 1 10,660.00 381.50 549.99 213.20 - 9,515.31 783.50 549.99 213.20
Professional Fees
8,000 per
Accountant
Month
Supplier
 Décor Furniture provides opportunities by establishing good buyer and
supplier relationship. It helps other businesses for being their source of
income by means of acquiring their products and services to be use in the
production.

Environment
 Décor Furniture can help the environment by proper waste disposal in
manufacturing the product. The company can impart the importance of
recycling waste raw materials which produce other income for the
proposed business.

Community
 Décor Furniture can achieve its objectives with the support of the
individuals coming from Angeles City, Pampanga. In effect, the proposed
business will help the community by providing employment, satisfaction
to the consumers and proper waste disposal.