 This study comprises of two fragments:

 First part is the market study were we determine

the availability of the market, acceptability of
service and attractiveness of the industry.
 Second Part is the Feasibility Study where we
would determine the profitability of the proposed
project or business.
 “Cerebroom” 24/7 study place will be the first established
Study Lounge in the south of metro.

 It would be a perfect place to work on something, to hit the

books, or to delve yourself in to deep intellect and to mug up
some knowledge.

 “Cerebroom” 24/7 study place will provide a place where you

can enjoy and socialize without feeling alone, a place that
opens up an opportunity for spontaneous conversation.
Focus and even work without distractions and at the same
time enjoy the foods and ambiance of the place.
 The market study was conducted by the
proponents to bring to light of the following:
 To prove that there is market.
 Determine the amount of quantity demand that
would be substantial enough to introduce the
proposed project
 Lastly, to prove the attractiveness of the industry
 It is recommended to establish a thorough
project feasibility study.

 To determine the viability of offering a 24/7 Study

lounge with the researchers as the proponents
 The objectives for marketing aspect of the project:

▪ to determine the appropriate price ranges

▪ to establish and achieve the marketing strategy
▪ to prepare a competent scope and limitations
▪ To gain popularity among known schools and establishments in
Paranaque City.
 Product/Service Strategy
▪ To give quality administrations and different amenities
that will be beneficial to its clients.
▪ To guarantee that everything everything would be at its
reasonable cost for our clients are predominantly
understudies who are consistently on a spending limit.
▪ To also provide a serene and study friendly place that
not only provide “instagrammable” place but a place
where they can focus in studying and do focus work.
 The proposed business is a hybrid of cafes and
accommodation type of business and it caters
students and young professionals.

 it is the first ever study lounge in the area of

Paranaque which is south of Metro Manila that
attracts more demand than the competing firms.
 The proponents opted for mark-up pricing
based on other rivals proposed benchmarked
prices, or simply competition pricing.
 This partition of the viability study of the
projected business aspires to hash out the
altered stratagems or line-of-attack that the
founders plot to stimulate demand for the
entity’s services.
 Publicizing or reporting is a marketing mode
which associated or bonded with the utilization
of traditional media which includes display ads,
social media ads, newspapers and magazines,
outdoor advertising, radio and podcast, event
marketing and etc.
 Dining and Kitchen Supplies
 Shop Supplies
 Furnitures and Fixtures
 Office Materials
 Machineries
 Different kinds of Machineries and equipment’s
should be used to provide quality service, these
equipment, supplies, furniture and fixtures are
depreciated using sum of the years digit method.
First level floor plan
The first level or the ground floor
entails the administrative facilities
which is made up of the
management’s and employee’s
offices, and the cashier’s wherein
the payment shall be made to
obtain access into the lounge.
Moreover, this primary floor is
consisting of some amenities that
the customers may enjoy such as
the canteen, the reading area, and
the lockers.
 Second Level Floor Plan
The secondary level contains an area
that is pure for studying which can
cater a hundred of individuals. The
space is designed considering different
situations and habits in which people
tend to manage their studies or work
stuffs; which includes circumstances
like being alone, with companion, by
group and being someone who loves
studying surrounded by numerous
people in order to socialize.
 Third Level Floor Plan
The last floor contains some superfluous
facilities that the business offer for
customer conveniences. This level contains
a shower room and a sleeping area; which is
divided into two areas per amenity which
separates male from female customers.
And additionally, a meeting or conference
area and some additional space wherein the
clients can study or work is also present into
this floor.
Total Projected Cost Item
Fixed Asset Acquisition
Schedule Amount

Leasehold
computed in this Improvements
461,150.00

Machineries and
section will be the Equipment
209,211.00

basis for determining Furniture and Fixtures 544,035.00

the sufficient amount Working Capital

Lease (90,000.00 per
of the initial capital month; 1 month
450,000.00
contributions by the advance 1-month
deposit)

partners. The capital Salaries

Utilities
464,772.00
61,500.00
contributions then Kitchen and
4,100.75
will be used by the Utensils Supplies

Pantry Supplies 447,830.63

business to finance its Cleaning Supplies 29,651.00
daily, monthly and Supplies Study Lounge
3,240.00
Supplies
yearly expenses. Shower Room
31,950.00
Supplies
Napping Room
35,050.00
Supplies
Office Supplies 1,809.50

Cash Revolving Fund 238,865.12

Pre-Operating Expense

Registration and
12,535.00
Licensing

Advertisement
4,300.00
(Opening)

Total Projected Cost 3,000,000.00

Partners Contribution
General Partners Contribution

Pineda, Kyla Joy V. ₱600,000.00

Talaver, Adrian James L. ₱600,000.00

Vasquez, Reymil L. ₱600,000.00

Villarosa, Psalm David ₱600,000.00

Yao, Annvlyn G. ₱600,000.00

Total ₱3,000,000.00
 Projected Comprehensive Income Statement
Cerebroom
Projected Comprehensive Income Statement
For the year Ended December 31

NOTES 2020 2021 2022 2023 2024

REVENUE 1 ₱9,712,952.40 ₱10,198,600.02 ₱10,708,530.03 ₱11,243,956.53 ₱11,806,154.35
LESS: Cost of 2 ₱1,893,726.05 ₱2,045,646.55 ₱2,147,928.88 ₱2,255,325.32 ₱2,368,091.59
Sales
Gross Profit ₱7,819,226.35 ₱8,152,953.47 ₱8,560,601.15 ₱8,988,631.20 ₱9,438,062.76
LESS: Operating
Expenses:
Office Supplies 6,876.10 7,581.81 7,960.90 8,358.94 8,776.89
Salaries and 3 2,600,416.00 2,730,436.80 2,866,958.64 3,010,306.57 3,160,821.90
Wages
Uniform Expense 4 6,500.00 - - - -
Advertising 4,300.00 4,515.00 4,740.75 4,977.79 5,226.68
Expense
Depreciation 5 364,318.80 291,455.04 218,591.28 145,727.52 72,863.76
Expense
Utilities and 6 246,000.00 262,050.00 278,902.50 296,597.63 315,177.21
Telecommunicati
on Expense
Rent Expense 1,080,000.00 1,134,000.00 1,190,700.00 1,250,235.00 1,312,746.75
Employer 7 35,246.28 35,246.28 35,246.28 35,246.28 35,246.28
Contribution
Expense
Registration 36,285.00 38,099.25 40,004.21 42,004.42 44,104.64
and Licensing
Repairs and 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Maintenance
Total Operating ₱4,384,942.18 ₱4,508,384.18 ₱4,648,104.56 ₱4,798,454.15 ₱4,959,964.11
Expense
Total Operating ₱3,434,284.17 ₱3,644,569.30 ₱3,912,496.59 ₱4,190,177.05 ₱4,478,098.65
Income
Interest Income 16 170,000.00 176,700.00 273,681.00 283,655.43 384,017.29
Net Income ₱3,604,284.17 ₱3,821,269.30 ₱4,186,177.59 ₱4,473,832.48 ₱4,862,115.95
(Before-Tax)
Income Tax ₱1,261,499.46 ₱1,337,444.25 ₱1,465,162.16 ₱1,565,841.37 ₱1,701,740.58
(35%)
NET INCOME ₱2,342,784.71 ₱2,483,825.04 ₱2,721,015.43 ₱2,907,991.11 ₱3,160,375.37
(After Tax)
Net Income 24.12% 24.35% 25.41% 25.86% 26.77%
Ratio (NI-After
Tax / Revenue)

Income tax Due ₱1,261,499.46 ₱1,337,444.25 ₱1,465,162.16 ₱1,565,841.37 ₱1,701,740.58

less: Tax Credit 0 1,261,499.46 75,944.79 1,389,217.36 176,624.01

Income Tax 10 ₱1,261,499.46 ₱75,944.79 ₱1,389,217.36 ₱176,624.01 ₱1,525,116.58

Payable
 Cerebroom
Projected Statement of Financial Performance
For the year Ended December 31
NOTES 2020 2021 2022 2023 2024

Capital, Beginning
Pineda, Kyla Joy V. ₱600,000.00 ₱908,273.40 ₱1,194,282.65 ₱1,477,712.87 ₱1,750,414.43
Talaver, Adrian 600,000.00 908,273.40 1,194,282.65 1,477,712.87 1,750,414.43
James L.
Vasquez, Reymil L. 600,000.00 908,273.40 1,194,282.65 1,477,712.87 1,750,414.43
Villarosa, Psalm 600,000.00 908,273.40 1,194,282.65 1,477,712.87 1,750,414.43
David B.
Yao, Annvlyn G. 600,000.00 908,273.40 1,194,282.65 1,477,712.87 1,750,414.43
3,000,000.00 4,541,367.01 5,971,413.24 7,388,564.37 8,752,072.16
Net Profit (Gain) 2,342,784.71 2,483,825.04 2,721,015.43 2,907,991.11 3,160,375.37
Total 5,342,784.71 7,025,192.05 8,692,428.67 10,296,555.48 11,912,447.53
Less: Withdrawals 801,417.71 1,053,778.81 1,303,864.30 1,544,483.32 1,786,867.13
Capital, Ending ₱4,541,367.01 ₱5,971,413.24 ₱7,388,564.37 ₱8,752,072.16 ₱10,125,580.40
 Cerebroom
Projected Statement of Cash Flow
For the year Ended December 31

NOTES 2020 2021 2022 2023 2024

Cash Flow
from
Operating
Activities:
Net Income ₱2,342,784.71 ₱2,483,825.04 ₱2,721,015.43 ₱2,907,991.11 ₱3,160,375.37
(After-Tax)
Add: 364,318.80 291,455.04 218,591.28 145,727.52 72,863.76
Depreciation
Operating ₱2,707,103.51 ₱2,775,280.08 ₱2,939,606.71 ₱3,053,718.63 ₱3,233,239.13
Income (Loss)
before
changes in
operating
assets and
liabilities
Changes in
operating
assets and
liabilities
(Increase)
Decrease in
current
assets:
Marketable 880,000.00 44,000.00 46,200.00 48,510.00 50,935.50
securities
Inventories 97,438.70 4,871.94 5,115.53 5,371.31 5,639.87
Office 361.90 18.10 19.00 19.95 20.95
supplies
Prepaid Rent 180,000.00 9,000.00 9,450.00 9,922.50 10,418.63
Increase
(Decrease) in
current
liabilities
Income Tax 1,261,499.46 -1,185,554.67 1,313,272.57 -1,212,593.36 1,348,492.57
Payable
Net Cash ₱2,810,802.37 ₱1,531,835.38 ₱4,192,094.75 ₱1,777,301.52 ₱4,514,716.75
Flow from
Operating
Cash Flow
from
Investing
Activities::

Increase in 92,700.00 3,185,481.00 191,045.43 3,286,776.79

Note 3,090,000.00
Receivable
Increase in
Property 1,214,396.00
Plant and
Equipment

Net Cash - - 92,700.00 - 3,185,481.00 - 191,045.43 - 3,286,776.79

Flow from 4,304,396.00
Investing
Cash Flow
from
Financing
Activities::
Increase in 3,000,000.00
Capital
Investment
Cash 801,417.71 1,053,778.81 1,303,864.30 1,544,483.32 1,786,867.13
Deductions
from
Withdrawals
Net Cash ₱2,198,582.2 -₱1,053,778.81 -₱1,303,864.30 -₱1,544,483.32 -₱1,786,867.13
Flow from 9
Financing

Net Increase ₱704,988.67 ₱385,356.58 -₱297,250.55 ₱41,772.76 -₱558,927.17

in Cash
Cash at ₱704,988.67 ₱1,090,345.24 ₱793,094.69 ₱834,867.46
Beginning of
the Year
Cash at End ₱704,988.67 ₱1,090,345.24 ₱793,094.69 ₱834,867.46 ₱275,940.29
of the Year
 NOTES 2020 2021 2022 2023 2024

ASSET

Current Asset:

Cash on Bank ₱704,988.67 ₱1,090,345.24 ₱793,094.69 ₱834,867.46 ₱275,940.29

Marketable 15 880,000.00 924,000.00 970,200.00 1,018,710.00 1,069,645.50

Securities

Inventories 9 97,438.70 102,310.64 107,426.17 112,797.48 118,437.35

Office Supplies 361.90 380.00 398.99 418.94 439.89

Prepaid Rent 180,000.00 189,000.00 198,450.00 208,372.50 218,791.13

Total Current Asset ₱1,862,789.27 ₱2,306,035.87 ₱2,069,569.86 ₱2,175,166.38 ₱1,683,254.15

Non-Current Asset:

Notes Receivable 14 ₱3,090,000.00 ₱3,182,700.00 ₱6,368,181.00 ₱6,559,226.43 ₱9,846,003.22

Machineries and 11 ₱146,447.70 ₱96,237.06 ₱58,579.08 ₱33,473.76 ₱20,921.10

Equipment, Net

Furniture and 12 ₱380,824.50 ₱250,256.10 ₱152,329.80 ₱87,045.60 ₱54,403.50

Fixtures, Net

Leasehold 13 ₱322,805.00 ₱212,129.00 ₱129,122.00 ₱73,784.00 ₱46,115.00

Improvements, Net

Total Non-Current ₱3,940,077.20 ₱3,741,322.16 ₱6,708,211.88 ₱6,753,529.79 ₱9,967,442.82

Asset

TOTAL ASSET ₱5,802,866.47 ₱6,047,358.03 ₱8,777,781.74 ₱8,928,696.17 ₱11,650,696.97

LIABILIIES

Taxes Payable ₱1,261,499.46 ₱75,944.79 ₱1,389,217.36 ₱176,624.01 ₱1,525,116.58

Total Liabilities 1,261,499.46 75,944.79 1,389,217.36 176,624.01 1,525,116.58

PARTNERS' EQUITY

Partners' Capital 4,541,367.01 5,971,413.24 7,388,564.37 8,752,072.16 10,125,580.40

Total Equity ₱4,541,367.01 ₱5,971,413.24 ₱7,388,564.37 ₱8,752,072.16 ₱10,125,580.40

TOTAL LIABILITIES ₱5,802,866.47 ₱6,047,358.03 ₱8,777,781.74 ₱8,928,696.17 ₱11,650,696.97

AND PARTNERS'
EQUITY
NOTE 1 REVENUE

Poducts and 2020 2021 2022 2023 2024

Services
Per-Rate ₱3,405,047.4 ₱3,575,299.80 ₱3,754,064.78 ₱3,941,768.02 ₱4,138,856.43
2
Service
Rental Service ₱3,724,826.2 ₱3,911,067.55 ₱4,106,620.93 ₱4,311,951.98 ₱4,527,549.57
4

Products ₱2,583,078.7 ₱2,712,232.68 ₱2,847,844.31 ₱2,990,236.53 ₱3,139,748.35

4
Total Revenue ₱9,712,952.4 ₱10,198,600.0 ₱10,708,530.0 ₱11,243,956.5 ₱11,806,154.3
0 2 3 3 5
NOTE 2 COST OF
SALES
2020 2021 2022 2023 2024
Pantry ₱1,701,756.38 ₱1,876,410.32 ₱1,970,230.83 ₱2,068,742.38 ₱2,172,179.50
Supplies
Shower Room ₱121,410.00 ₱133,870.50 ₱140,564.03 ₱147,592.23 ₱154,971.84
Supplies

Cleaning ₱28,168.93 ₱31,059.95 ₱32,612.94 ₱34,243.59 ₱35,955.77

Supplies
Study Lounge ₱3,240.00 - - - -
Supplies

Napping Room ₱35,050.00 - - - -

Supplies

Kitchen and ₱4,100.75 ₱4,305.79 ₱4,521.08 ₱4,747.13 ₱4,984.49

Utensils
Supplies
Total Cost of ₱1,893,726.05 ₱2,045,646.55 ₱2,147,928.88 ₱2,255,325.32 ₱2,368,091.59
Sales
NOTE 3 SALARIES AND
WAGES

Employees Basic Salary 13th Month Pay Gross Annual Pay

Operation Manager ₱19,600.00 ₱19,600.00 ₱254,800.00

Service Crew 1 ₱15,036.00 ₱15,036.00 ₱195,468.00

Service Crew 2 ₱15,036.00 ₱15,036.00 ₱195,468.00

Kitchen Crew 1 ₱15,036.00 ₱15,036.00 ₱195,468.00

Kitchen Crew 2 ₱15,036.00 ₱15,036.00 ₱195,468.00

Kitchen Crew 3 ₱15,036.00 ₱15,036.00 ₱195,468.00

Receptionist 1 ₱15,036.00 ₱15,036.00 ₱195,468.00

Receptionist 2 ₱15,036.00 ₱15,036.00 ₱195,468.00

Cahier 1 ₱15,036.00 ₱15,036.00 ₱195,468.00

Cahier 2 ₱15,036.00 ₱15,036.00 ₱195,468.00

Janitor 1 ₱15,036.00 ₱15,036.00 ₱195,468.00

Janitor 2 ₱15,036.00 ₱15,036.00 ₱195,468.00

Security Guard ₱15,036.00 ₱15,036.00 ₱195,468.00

Total ₱200,032.00 ₱200,032.00 ₱2,600,416.00

NOTE 4 UNFORM EXPENSE
Employees Amount
Operation Manager ₱500.00
Service Crew 1 ₱500.00
Service Crew 2 ₱500.00
Kitchen Crew 1 ₱500.00
Kitchen Crew 2 ₱500.00
Kitchen Crew 3 ₱500.00
Receptionist 1 ₱500.00
Receptionist 2 ₱500.00
Cahier 1 ₱500.00
Cahier 2 ₱500.00
Janitor 1 ₱500.00
Janitor 2 ₱500.00
Security Guard ₱500.00
Total ₱6,500.00
NOTE 5 DEPRECIATION
EXPENSE

Items 2020 2021 2022 2023 2021

Leasehold ₱138,345.00 ₱110,676.00 ₱83,007.00 ₱55,338.00 ₱27,669.00

Improvements

Machineries and ₱62,763.30 ₱50,210.64 ₱37,657.98 ₱25,105.32 ₱12,552.66

Equipment

Furniture and ₱163,210.50 ₱130,568.40 ₱97,926.30 ₱65,284.20 ₱32,642.10

Fixtures

Total ₱364,318.80 ₱291,455.04 ₱218,591.28 ₱145,727.52 ₱72,863.76

NOTE UTILITIES AND TELECOMMUNICTION EXPENSE
6
2020 2021 2022 2023 2024

Water Expense ₱48,000.00 ₱50,400.00 ₱52,920.00 ₱55,566.00 ₱58,344.00

Electricity Expense ₱156,000.00 ₱169,650.00 ₱183,982.50 ₱199,031.63 ₱214,833.21

Telecommunication ₱42,000.00 ₱42,000.00 ₱42,000.00 ₱42,000.00 ₱42,000.00

Expense

Total ₱246,000.00 ₱262,050.00 ₱278,902.50 ₱296,597.63 ₱315,177.21

NOTE 7 EMPLOYER CONTRIBUTION EXPENSE
Employees Basic Salary PhilHealth Pag-Ibig SSS Total Deduction
Operation Manager ₱19,600.00 ₱275.00 ₱392.00 ₱1,590.00 ₱3,429.00
Service Crew 1 15,036.00 220.00 300.72 1,230.00 2,651.44
Service Crew 2 15,036.00 220.00 300.72 1,230.00 2,651.44
Kitchen Crew 1 15,036.00 220.00 300.72 1,230.00 2,651.44
Kitchen Crew 2 15,036.00 220.00 300.72 1,230.00 2,651.44
Kitchen Crew 3 15,036.00 220.00 300.72 1,230.00 2,651.44
Receptionist 1 15,036.00 220.00 300.72 1,230.00 2,651.44
Receptionist 2 15,036.00 220.00 300.72 1,230.00 2,651.44
Cahier 1 15,036.00 220.00 300.72 1,230.00 2,651.44
Cahier 2 15,036.00 220.00 300.72 1,230.00 2,651.44
Janitor 1 15,036.00 220.00 300.72 1,230.00 2,651.44
Janitor 2 15,036.00 220.00 300.72 1,230.00 2,651.44
Security Guard 15,036.00 220.00 300.72 1,230.00 2,651.44
Total ₱200,032.00 ₱2,915.00 ₱4,000.64 ₱16,350.00 ₱35,246.28

NOTE 8 INVENTORY
Items 2020 2021 2022 2023 2021
Inventory
Pantry Supplies ₱1,791,322.50 ₱1,880,888.63 ₱1,974,933.06 ₱2,073,679.71 ₱2,177,363.69
Shower Room
127,800.00 134,190.00 140,899.50 147,944.48 155,341.70
Supplies
Cleaning Supplies 29,651.50 31,134.08 32,690.78 34,325.32 36,041.58
Study Lounge
3,240.00 - - - -
Supplies
Napping Room
35,050.00 - - - -
Supplies
Kitchen and Utensils
4,100.75 4,305.79 4,521.08 4,747.13 4,984.49
Supplies
Total: ₱1,991,164.75 ₱2,050,518.49 ₱2,153,044.41 ₱2,260,696.63 ₱2,373,731.46
NOTE 9 INVENTORY, ENDING
Items 2020 2021 2022 2023 2021
Inventory, ending
Pantry Supplies ₱89,566.13 ₱94,044.43 ₱98,746.65 ₱103,683.99 ₱108,868.18
Shower Room
Supplies 6,390.00 6,709.50 7,044.98 7,397.22 7,767.08
Cleaning Supplies 1,482.58 1,556.70 1,634.54 1,716.27 1,802.08
Study Lounge
Supplies - - - - -
Napping Room
Supplies - - - - -
Kitchen and Utensils
Supplies - - - - -
Total: ₱97,438.70 ₱102,310.64 ₱107,426.17 ₱112,797.48 ₱118,437.35
NOTE 10 Income Tax Payable
2020 2021 2022 2023 2021
Income tax Due ₱1,261,499.46 ₱1,337,444.25 ₱1,465,162.16 ₱1,565,841.37 ₱1,701,740.58
less: Tax Credit - 1,261,499.46 75,944.79 1,389,217.36 176,624.01
Income Tax Payable ₱1,261,499.46 ₱75,944.79 ₱1,389,217.36 ₱176,624.01 ₱1,525,116.58

NOTE 11 Machineries and Equipment, Net

2020 2021 2022 2023 2021
Machineries and
₱209,211.00 ₱209,211.00 ₱209,211.00 ₱209,211.00 ₱209,211.00
Equipment
Accumulated
62,763.30 112,973.94 150,631.92 175,737.24 188,289.90
Depreciation
Machineries and
Equipment, Net ₱146,447.70 ₱96,237.06 ₱58,579.08 ₱33,473.76 ₱20,921.10

NOTE 12 Furniture and Fixtures, Net

2020 2021 2022 2023 2021
Furniture and Fixtures ₱544,035.00 ₱544,035.00 ₱544,035.00 ₱544,035.00 ₱544,035.00
Accumulated
163,210.50 293,778.90 391,705.20 456,989.40 489,631.50
Depreciation
Furniture and
Fixtures, Net ₱380,824.50 ₱250,256.10 ₱152,329.80 ₱87,045.60 ₱54,403.50
NOTE 13Leasehold Improvements, Net
2020 2021 2022 2023 2021
Leasehold
₱461,150.00 ₱461,150.00 ₱461,150.00 ₱461,150.00 ₱461,150.00
Improvements
Accumulated
138,345.00 249,021.00 332,028.00 387,366.00 415,035.00
Depreciation
Leasehold
Improvements, Net ₱322,805.00 ₱212,129.00 ₱129,122.00 ₱73,784.00 ₱46,115.00
NOTE 14 Note Receivables
2020 2021 2022 2023 2021
Principal ₱3,000,000.00 ₱3,090,000.00 ₱3,182,700.00 ₱3,278,181.00 ₱3,376,526.43
interest Income 90,000.00 92,700.00 95,481.00 98,345.43 101,295.79
Notes Receivable 1 ₱3,090,000.00 ₱3,182,700.00 ₱3,278,181.00 ₱3,376,526.43 ₱3,477,822.22

Principal ₱3,000,000.00 ₱3,090,000.00 ₱3,182,700.00

interest Income 90,000.00 92,700.00 95,481.00
Notes Receivable 2 ₱3,090,000.00 ₱3,182,700.00 ₱3,278,181.00

Principal ₱3,000,000.00
interest Income 90,000.00
Notes Receivable 3 ₱3,090,000.00

Total Principal ₱3,000,000.00 ₱3,090,000.00 ₱6,182,700.00 ₱6,368,181.00 ₱9,559,226.43

Total interest Income 90,000.00 92,700.00 185,481.00 191,045.43 286,776.79
Total Notes Receivable ₱3,090,000.00 ₱3,182,700.00 ₱6,368,181.00 ₱6,559,226.43 ₱9,846,003.22
NOTE 15Marketable Securities
2020 2021 2022 2023 2021
Principal ₱800,000.00 ₱840,000.00 ₱882,000.00 ₱926,100.00 ₱972,405.00
Interest 80,000.00 84,000.00 88,200.00 92,610.00 97,240.50
Marketable Securities ₱880,000.00 ₱924,000.00 ₱970,200.00 ₱1,018,710.00 ₱1,069,645.50

NOTE 16Interest Income

2020 2021 2022 2023 2021
Notes recevables ₱90,000.00 ₱92,700.00 ₱185,481.00 ₱191,045.43 ₱286,776.79
Marketable securties 80,000.00 84,000.00 88,200.00 92,610.00 97,240.50
Interest Income ₱170,000.00 ₱176,700.00 ₱273,681.00 ₱283,655.43 ₱384,017.29
PROFITABILITY RATIO

Gross Profit Margin

Gross Profit ₱7,819,226.35 ₱8,152,953.47 ₱8,560,601.15 ₱8,988,631.20 ₱9,438,062.76
Divided by: Sales ₱9,712,952.40 ₱10,198,600.02 ₱10,708,530.03 ₱11,243,956.53 ₱11,806,154.35
TOTAL 0.8050 0.7994 0.7994 0.7994 0.7994
Multiply by: 100 100 100 100 100 100
Gross Profit Margin 80.50% 79.94% 79.94% 79.94% 79.94%

Operating Profit Margin

Gross Profit ₱7,819,226.35 ₱8,152,953.47 ₱8,560,601.15 ₱8,988,631.20 ₱9,438,062.76
Less: Operating Expense ₱4,384,942.18 ₱4,508,384.18 ₱4,648,104.56 ₱4,798,454.15 ₱4,959,964.11
Total Operating Profit ₱3,434,284.17 ₱3,644,569.30 ₱3,912,496.59 ₱4,190,177.05 ₱4,478,098.65
Divide by: Sales ₱9,712,952.40 ₱10,198,600.02 ₱10,708,530.03 ₱11,243,956.53 ₱11,806,154.35
Multiply by: 100 100 100 100 100 100
Operating Profit Margin 35.36% 35.74% 36.54% 37.27% 37.93%
Net Profit Margin
Net Income ₱2,342,784.71 ₱2,483,825.04 ₱2,721,015.43 ₱2,907,991.11 ₱3,160,375.37
Divide by: Sales ₱9,712,952.40 ₱10,198,600.02 ₱10,708,530.03 ₱11,243,956.53 ₱11,806,154.35
TOTAL 0.2412 0.2435 0.2541 0.2586 0.2677
Multiply by: 100 100 100 100 100 100
Net Profit Margin 24.12% 24.35% 25.41% 25.86% 26.77%
Return on Equity
Net Income ₱2,342,784.71 ₱2,483,825.04 ₱2,721,015.43 ₱2,907,991.11 ₱3,160,375.37
Divided by: Shareholders Equity ₱4,541,367.01 ₱5,971,413.24 ₱7,388,564.37 ₱8,752,072.16 ₱10,125,580.40
TOTAL 0.5159 0.4160 0.3683 0.3323 0.3121
Multiply by: 100 100 100 100 100 100
Return on Equity 51.59% 41.60% 36.83% 33.23% 31.21%

LIQUIDITY RATIO

Current Ratio
Current Asset ₱1,862,789.27 ₱2,306,035.87 ₱2,069,569.86 ₱2,175,166.38 ₱1,683,254.15
Divided by: Curren Lability 1,261,499.46 75,944.79 1,389,217.36 176,624.01 1,525,116.58
Current Ratio 1.48 30.36 1.49 12.32 1.10

Acid Test Ratio

Current Asset ₱1,862,789.27 ₱2,306,035.87 ₱2,069,569.86 ₱2,175,166.38 ₱1,683,254.15
Less: Inventories 97,438.70 102,310.64 107,426.17 112,797.48 118,437.35
Less: Supplies 361.90 380.00 398.99 418.94 439.89
Total ₱1,764,988.67 ₱2,203,345.24 ₱1,961,744.69 ₱2,061,949.96 ₱1,564,376.91
Divided by: Current Liabilities 1,261,499.46 75,944.79 1,389,217.36 176,624.01 1,525,116.58
Acid Test Ratio 1.40 29.01 1.41 11.67 1.03

Inventory Turnover
Cost of Sales ₱1,893,726.05 ₱2,045,646.55 ₱2,147,928.88 ₱2,255,325.32 ₱2,368,091.59
Divided by: Average Inventory:
Beginning Inventory 1,991,164.75 2,147,957.19 2,255,355.05 2,368,122.80 2,486,528.94
Ending Inventory 97,438.70 102,310.64 107,426.17 112,797.48 118,437.35
Total: 2,088,603.45 2,250,267.82 2,362,781.21 2,480,920.27 2,604,966.29
Divided by: 2 2 2 2 2 2
Average Inventory 1,044,301.73 1,125,133.91 1,181,390.61 1,240,460.14 1,302,483.14
Inventory Turnover 1.81 1.82 1.82 1.82 1.82

Days in Inventory
Days 365 365 365 365 365
Divided by: Inventory Turnover 1.81 1.82 1.82 1.82 1.82
Days in Inventory 201 201 201 201 201
SOLVENCY RATIO

Debt Ratio
Total Liabilities ₱1,261,499.46 ₱75,944.79 ₱1,389,217.36 ₱176,624.01 ₱1,525,116.58
Divided by: Total Asset 5,802,866.47 6,047,358.03 8,777,781.74 8,928,696.17 11,650,696.97
Debt Ratio 21.74% 1.26% 15.83% 1.98% 13.09%

Debt-Equity Ratio
Total Liabilities ₱1,261,499.46 ₱75,944.79 ₱1,389,217.36 ₱176,624.01 ₱1,525,116.58
Divided by: Total Equity 4,541,367.01 5,971,413.24 7,388,564.37 8,752,072.16 10,125,580.40
Debt-Equity Ratio 27.78% 1.27% 18.80% 2.02% 15.06%
BREAKEVEN
ANALYSIS
2020 2021 2022 2023 2024
Sales ₱9,712,952.40 ₱10,198,600.02 ₱10,708,530.03 ₱11,243,956.53 ₱11,806,154.35
Variable Cost 4,834,349.43 5,128,575.69 5,386,742.16 5,657,816.96 5,942,445.19
Contribution Margin 4,878,602.97 5,070,024.34 5,321,787.87 5,586,139.57 5,863,709.16
Contribution Margin
50% 50% 50% 50% 50%
Ratio
Fixed Cost 1,444,318.80 1,425,455.04 1,409,291.28 1,395,962.52 1,385,610.51
Break-even Point ₱2,875,536.26 ₱2,867,372.00 ₱2,835,783.46 ₱2,809,837.04 ₱2,789,826.56
NET PRESENT VALUE

Year Net Cash Inflows PVF@10% PV of cash inflows

2020 ₱2,707,103.51 0.909 ₱2,460,757.09

2021 ₱2,775,280.08 0.826 ₱2,292,381.35

2022 ₱2,939,606.71 0.751 ₱2,207,644.64

2023 ₱3,053,718.63 0.683 ₱2,085,689.83

2024 ₱3,233,239.13 0.621 ₱2,007,841.50

Total PVCI ₱11,054,314.40

-Cost of Investment ₱3,000,000.00

Net Present Value ₱8,054,314.40

PAYBACK PERIOD

Year Net Cash Inflows Investment Period

2020 ₱2,707,103.51 ₱2,707,103.51 1

2021 ₱2,775,280.08 ₱292,896.49 0.11

2022 ₱2,939,606.71

2023 ₱3,053,718.63

2024 ₱3,233,239.13

PAYBACK PERIOD 1.11

 Organizational Chart
 Functions of Key Personnel
▪ Financial/Administration Manager

▪ Manage financial and administration teams to achieve

company financial goals. Develop the overall
corporate financial goals and objectives. Oversee
preparation of financial records related to general
ledger, payroll, budget, expense, etc.
 Operation/Human Resources Manager
Supports the development and implementation of HR
initiatives and systems. Provide counseling on policies and
procedures, be actively involved in recruitment by
preparing job descriptions, posting ads and managing the
hiring process, create and implement effective
onboarding plans, and develop training and development
programs
 Operation Supervisor

Oversee day-to-day operations, Design strategy and set

goals for growth, maintain budgets and optimize
expenses, ensure employees work productively and
develop professionally, evaluate and improve operations
and financial performance, direct the employee
assessment process and prepare regular reports for upper
management
 Accountant/Controller

Organize and update financial records as needed (digital

and physical), analyze transactions and prepare reports,
perform regular, detailed audits to ensure accuracy in
financial documents, expenditures and investments,
forecast revenue and analyze profit margins, oversee
ledger reconciliation and manage accounts
payable/receivable, participate in budgeting processes
 Contribution to potential clients:

 “Cerebroom” will provide quality service to customers. The

company pursues to leave a positive mark in every single
client to enter the establishment. Quality customer service
results to a positive customer feedback.

 Giving every individual the opportunity to take pleasure of

the services offered by “Cerebroom”
 Contribution to the Economy:
 Improves economic base

When a product is bought from an independent locally -

owned business rather than nationally- owned businesses,
more money stays and flows within the community which
serves to strengthen its economic base.

 Enhances the natives' marketability

Whenever a locally produced product has been purchased,

there is also a greater chance for them to be known and have
more clients. Thus, improves the economy.
 Contribution to the Government

 Taxation is the inherent power of the state to enforce

an exact contribution which is generally payable in
money and legislative in nature in order to generate
funds or to be the lifeblood of the government

 Just like an individual, businesses must pay taxes in

different form such as income taxes, property tax,
excise tax and etc. one of the benefits of the
premediated business is that it provides or adds taxes
that the authority can exhaust to contribute into the
development.
 Contribution to the Society:

 Employment and Income

The business will create job not just for its potential
employees but also for other businesses as one of the
benefit of having a co-working space or a lounge made
for studying is contributing into the improvement of
businesses which is small and also to freelancers who
cannot afford to buy or lease their own space which
indeed can provide job for other individuals that can be
a good factor in enriching their lives and increasing their
standard of living.
• MARKETING ASPECTS (4P’S)

• PROCESS (FLOW CHART)

-EQUIPMENT NEEDED
-LOCATION MAP
-PLANT LAYOUT
• FINANCIAL ASPECTS
• HUMAN RESOURCES MANAGEMENT
• SOCIO ECONOMIC