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SUPREME WONTON WRAPPER

A FEASIBILITY STUDY
Presented to
The Research Committee
North Central Mindanao College
Maranding, Lala, Lanaodel Norte

In Partial Fulfillment
of the Requirements for the Course
Marketing Elective 4- Feasibility Study
Leading to
Bachelor of Science in Business Administration

Ecot, Charibel N.
Languido, April Rose S.

S.Y 2016-2017
Chapter I

INTRODUCTION

Wonton Wrappers are used in Chinese cooking. They are square

sheets of yellowish dough made from wheat flour, egg and water.The dough,

basically an egg-noodle dough, is the same dough that Eggroll Wrappers are

made from. Wonton Wrappers, however, will only be about 3 1/2 inches (9

cm) across, about 1/4 the size of an Eggroll Wrapper. The Wrappers can be

fried, steamed or boiled, or even fried in strips to be used as a garnish. Like

all egg-noodle dough products, they have a very neutral flavor. When fried,

they can be used for desserts as well. However, the dough is easy enough to

make, rolling them out and cutting them is very fiddly to do at home, even with

an electric pasta machine. Consequently, most people buy them already

made. They come fresh or frozen in packages usually containing 5 to 6

dozens. They are sold in round or square shapes, and in various thicknesses,

though choice in thicknesses is mostly only available at Asian stores. The

thicker ones are best for frying; the thin ones are better for steaming or putting

into soups as dumplings. Wonton Wrappers in general are thicker than

Japanese Gyoza Wrappers (Oulton, 2005). Wonton wrappers good points

includes very low in saturated fat, low in cholesterol, no sugar, high in

selenium and high in thiamin. Thus, wonton wrapper has a healthy benefit to

people.

Philippine cuisine (Filipino: Lutuing Pilipino or Pagkaing Pilipino)

consists of the food, preparation methods, and eating customs found in the
Philippines. The style of cooking and the food associated with it have evolved

over many centuries from their Austronesian origins to a mixed cuisine of

Indian, Japanese, Malay, Chinese, Spanish, and American, as well as others

adapted to indigenous ingredients and the local palate (Civitello, 2011).The

Chinese culture including the wonton use greatly influenced most of the

Filipino food recipes. Filipinos make use of wonton wrapper in various recipes.

In this feasibility study, the researchers seek for possibilities in production and

marketing of wonton wrapper in Maranding, Lala. Wonton wrapper

manufacturing today makes use of machines for fast production. Here, the

business will try to produce wanton wrappers using automatic wanton wrapper

machine. Products will be distributed in various market retailers and food

establishments.
Chapter II

EXECUTIVE SUMMARY

A. Type of Business

1. Nature of the Business

The proposed business will be operated by the owner herself. The

business will manufacture wonton wrapper using wonton wrapper machine. It

will supply wonton wrapper in Maranding Public Market, Kapatagan Public

Market and Tubod Public Market through consignment basis. Wonton

wrappers will be packed by dozen in plastic containers sealed using a vacuum

sealer and will be temporarily stored in sliding glass top chest freezer before

delivering to target locations.

2. Name of the Business

The name of the business will be ‘Supreme Wonton Wrapper’. The

term ‘supreme’ is attached to the business product name that is the wonton

wrapper. It means ‘highest on rank/level’. Quality is always first (Zhangzheng,

2016). The business will then always be reminded that they should operate for

more quality production to put their business in highest position.

3. Location of the Business

The proposed business will be located in Purok Narra, Teacher’s

Village, Maranding, Lala, Lanao del Norte. The place was owned by one of

the researchers that will be rented amounting to PHP8,000.00 per month. The

area for manufacture is not overcrowded, less traffic and less noise rate; thus
less polluted. Wonton wrapper manufacturing always maintains its high value

sanitation to produce high quality products. The location is accessible for the

business to manufacture and supply their product in various public market

locations since it is not far from the target public markets.

Since, the wonton wrapper is made mostly by dough, the business raw

supply will acquired in Honeymart Grocery Store in Kapatagan, Lanaodel

Norte. It is only 15 minutes travel from the business location. The supplier was

known with its low-price and quality flour needed for every consumer.

Consumers of wonton wrapper does not limit to siomai businesses existing in

Maranding,Kapatagan and Tubod. Wonton wrapper could be used in various

recipes. Hence, residents could buy wonton wrapper for their on recipes. The

availability of wonton wrapper in the market will be a start for innovating

market food production.

Wonton wrappers consumers in Maranding, Kapatagan and Tubod

acquire their supply in Ozamis City, a probable competitor of the business

product, which is an hour or more travel from their location. Hence, it resulted

to high value of wonton recipes such as siomai and other wonton products.

The production of wonton wrapper in the location will be advantageous to its

consumers and the firm. Further, it will be accessible in the local market.

4. Product/ Service Description

Wonton wrappers also known as wonton skin is a type of food wrap

made from various ingredients that are mixed together to become fresh dough

used to make the skins. The dough, which in most instances is basically

uncooked, wide noodle pasta, is rolled out, flattened and cut into small
individual squares, rectangles or circular-shaped sheets to become food

wraps or soup ingredients.

Wonton wrapper pieces will be wrapped in a sealed plastic before

supplying to public markets. Sizes of wonton wrapper will be 3.5” square of

0.3 oz.. Below shows the nutrition facts of wonton wrapper per piece:

Nutrition Facts
Calories 23 (97 kJ)
Calories from fat 1
% Daily Value 1
Total Fat 0.1g < 1%
Sat. Fat < 0.1g < 1%
Cholesterol 1mg < 1%
Sodium 46mg 2%
Total Carbs. 4.6g 2%
Dietary Fiber 0.1g < 1%
Protein 0.8g
Calcium 3.8mg
Potassium 6.6mg

B. Management, Marketing, and Financial Highlights

a. Market Feasibility

Supreme Wonton Wrapper Manufacturer will be located in Purok

Narra, Teacher’s Village, Maranding, Lala, Lanao del Norte. It will supply

wonton wrapper in Maranding Public Market, Kapatagan Public Market and

Tubod Public Market through consignment basis. Wonton wrappers will be

packed by dozen in plastic containers sealed using a vacuum sealer and will

be temporarily stored in sliding glass top chest freezer before delivering to

target locations. An approximate 3,500 pack delivery will be supplied by the

business public market retailers. The supply of the business will also increase
as the demand increases. Acquisition of wonton wrapper machine and other

equipment will be bought in Cagayan de Oro City. The raw supply of the

business will be acquired in Honeymart Grocery Store in Kapatagan,

Lanaodel Norte. Thus, the supplier of the business raw products is accessible

for the firm. Existing competitors of wonton wrapper production is located in

Ozamis City that is farther to the business target market. Moreover, this will

take the business into higher position.

b. Financial Feasibility

The return on investment of the proposed business shows that returns

1,198.09% of the investment cost after considering its critical assets life

(equipments). Hence, the proposed business is desirable to invest. The

proposed business pays back its investment cost within less than a year.

Hence, it pays back less than its investment life. With this, we can conclude

that it is worth to continue. The net income:sales ratio shows an increasing

trend of ratio from year 1 through year 5. Thus, this means that the business

is profitable.

c. Management Feasibility

The business will be composed of a manager, cashier, packager and a

delivery personnel. It will be a sole proprietorship type of business. The

owners of the business will invest amounting to PHP360,000.00 as initial

investment capital of the business. Legal forms will be acquired on the pre-

operation of the business. With its daily operation, the management will

maintain quality control system. The business will maintain sanitation in the

area. Raw ingredients will be stored seperately and away from harmful insects
and rodents. Ingredients for the production shall always be updated to avoid

spoilage. Spoiled ingredients shall be thrown to avoid poisoning.

C. Socio-Economic Contribution

The proposed business will benefit the economy of the proposed

location through the additional employment opportunities for the people. The

business will also benefit through the increasing profits of the business. The

payment made by the business as it grows will also benefit the government

through the Bureau of Internal Revenue such as income tax expense.

Moreover, the society will benefit through the opening of a new business with

a new introduction of the wonton products offered by the proposed business.


Chapter III

MARKET STUDY

A. Product to Sell

The product to sell by the proposed business will be the wonton

wrapper. Wonton wrapper is made of raw dough that is usually used to wrap

Asian dumplings. Below shows the prices of wonton wrapper per pack:

Business Price Retailer's Price per Pack Competitor's


Product per Pack (Public Market) Price
Wonton
Wrapper 20.00 25.00 36.00

B. Target Market

1. Area Coverage

The business area coverage will also include Maranding Public Market.

It will range from Saavedra, Maranding, Lala - Kapatagan - Baroy –Tubod. It

will cater market retailers, restaurants as well as other food establishments.

2. Customers/Consumers

The customers of the business will be the market retailers in

Maranding, Kapataganand TubodPublic Market. It will also supplies

restaurants and other food catering services. Businesses related to food

production will also be considered. The consumers of the business product

will be the people within the area coverage which will include the students,

employees and households.


C. Demand and Supply Analysis

The location of the business production will be inPurokNarra, Teacher’s

Village, Maranding, Lala, Lanaodel Norte. The business will produce wonton

wrapper and will be supplied to public markets particularly in Maranding,

Kapatagan and Tubod Public Market. The place is the trade center for various

raw products such as meats, vegetables and spices. Grocery stores,

bakeries, pharmacies, and restaurants were also located in the area. Hence,

the place is a crowded area. Maranding is a barangay of the municipality of

Lala,Lala’s population will range from 65, 355 – 70,000 and continually

increasing each year. On the other hand, Kapatagan is a municipality of

Lanao del Norte and its population will range from 53, 916 to 60,000 and is

continually increasing each year. Moreover,Tubod is a second class

municipality and the capital of the province of Lanao del Norte, Philippines. It

has a population of 46,332 people.Public markets were accessible to any

public transportations such as pedicabs, tricycles, and motor bikes as well as

autos. With this, investments to its economy are increasing. Further, this could

be advantageous to the business.

Most of wonton consumers acquire their wonton wrapper in Ozamis

City (probable competitors). Hence, it is more expensive with its travel

expense. The starting of production of the proposed business will be

accessible for the consumers. The availability of wonton wrappers in the area

will also benefit not only the food businesses but also the people in the area.

Hence, wonton wrapper demand will also increase. The researchers of this

feasibility study conducted a demand survey in various food businesses

(restaurants and street food vendors).


1. Do you know wonton wrapper? (Note: This was asked before showing

the wonton wrapper sample?

Kapatagan Survey Answer

Answers N %
YES 29 29%
NO 71 71%
Total 100 100%

Maranding, Lala Survey Answers

Answers N %
YES 35 35%
NO 65 65%
Total 100 100%

Tubod Survey Answers

Answers N %
YES 37 37%
NO 63 63%
Total 100 100%

The demand survey result above shows the prior knowledge of the

respondents about the wonton wrapper before showing the sample. It shows

that there are 35 or 35% of the respondents out of 100 total respondents in

Maranding, Lala knows wonton wrapper while Kapatagan has 29% and Tubod

has 37% of the respondents affirmation. This means that there is a chance of

selling the product in the market.

2. Are you familiar with this wonton wrapper? (Note: This was asked after

showing the wonton wrapper sample?

Kapatagan Survey Answer

Answers N %
YES 87 87%
NO 13 13%
Total 100 100%

Maranding, Lala Survey Answers

Answers N %
YES 95 95%
NO 5 5%
Total 100 100%

Tubod Survey Answers

Answers N %
YES 64 64%
NO 36 36%
Total 100 100%

The results presented above shows that after showing the wonton

wrapper sample, the respondents reacted positively yielding 95% from

Maranding, 87% from Kapatagan and 64% from Tubod who said that they

were familiar with the wonton wrapper. This means that there is a chance for

the business product to be patronized by the possible customers.

3. If there is a chance of selling a wonton wrapper in your market area,

would you like to buy it?

Kapatagan Survey Answer

Answers N %
YES 63 67%
NO 37 33%
Total 100 100%

Maranding, Lala Survey Answers

Answers N %
YES 53 53%
NO 47 47%
Total 100 100%
Tubod Survey Answers

Answers N %
YES 75 75%
NO 25 25%
Total 100 100%

The result presented above indicates that there is 53% from

Maranding, Lala, 63% from Kapatagan and 75% from Tubod who said that

they would like to buy the wonton wrapper. This further indicates that the

proposed business product could be salable in the proposed area location.

Based on the survey, the demand analysis of the wonton wrapper were

as follows:

Particulars Kapatagan Maranding Tubod


No. of Siomai Retailers 26 15 33
Ave. Siomai Sold per day 250 200 254
Total Average of Siomai Sold
per day 6,500 3,000 8,382

Total Average Divided by


of Siomai Target No. of Pcs. Target
Location Sold per day % Demand Per Pack Demand Approximate

Lala 3,000.00 53% 1,590.00 12 132.50 100

Kapatagan 6,500.00 67% 4,355.00 12 362.92 400

Tubod 8,382.00 75% 6,286.50 12 523.88 500

Total 12,231.50 1,019.29 1,000


Supply Analysis

Location Demand per day Supply per day Supply per Week
Lala 100 100 700
Kapatagan 400 400 2,800
Tubod 500 500 3,500
Total 7,000
Wonton wrapper is made of raw dough that is flattened and made into

rectangular shape. It will be sold in bulk by the business in various market

retailers. The business will supply wonton wrappers by pack twice a week per

schedule in different target public market retailers.

An approximate 3,500 pack delivery will be supplied by the business

public market retailers. The supply of the business will also increase as the

demand increases. Acquisition of wonton wrapper machine and other

equipment will be bought in Cagayan de Oro City. The raw supply of the

business will be acquired in Honeymart Grocery Store in Kapatagan,

Lanaodel Norte. Thus, the supplier of the business raw products is accessible

for the firm. Existing competitors of wonton wrapper production is located in

Ozamis City that is farther to the business target market. Moreover, this will

take the business into higher position.

D. Projected Sales

Production Volume

Particulars Maximum Minimum Average Total


Per Day
(packs) 1,000 800 900 900
Per Week
(packs) 6,300
Per Month
(packs) 25,200
Per Year
(packs) 302,400

Projected Sales

Particulars Per Day Per Week Per Month Per Year


Production
Volume 900 6,300 25,200 302,400
Price per Pack 20.00 20.00 20.00 20.00
Projected
Sales 18,000.00 126,000.00 504,000.00 6,048,000.00

E. Marketing Program

1. Own Marketing Program and Strategies

Product

Name: Supreme Wonton Wrapper Manufacturer

The product of the business is wonton wrapper that is made of raw

dough and various ingredients. It is flattened and made into rectangular shape

that is sold in bulk to its market retailers and other food catering services.

Price

The business will not retail the wonton product rather than selling in

bulk or by consignment basis. Wonton wrapper will be sold by dozen placed in

a plastic container vacuumed through a vacuum sealer. Wonton wrapper price

is amounting to PHP20.00 in which will be sold in the market through retailers

amounting to PHP25.00. Hence, the production price of each wonton wrapper

is PHP1.67 while the suggested retail price is PHP2.08.

Promotion

Facebook advertising will be considered to promote the business into

wider community. First week from the starting of the business, it will give

freebies for their customers such as in market retailers. With this, people will

be convinced to try wonton recipes with the use of wonton wrappers.

Additionally, printed business logo will be placed in the packaging material of


the wonton wrapper. Moreover, market retailers’ demand for wonton wrapper

will increase. Thus, the demand of the business wonton wrapper supply will

also increase.

Distribution

The business will have its own processing area. It will supply to

Kapatagan Market, Lala Market and Tubod Market through consignment

basis. Upon delivery, the wonton wrappers will be placed in a cooler to

maintain the temperature of wonton wrapper products. Below shows the

channel of distribution of the business’ product:

Supreme Wonton Wrapper


(Producer/Manufacturer)

Retailer
Chapter IV

OPERATION PLAN

A. Technical Production Description

Wonton wrapper production of the business makes use of machine to

fasten the production. Hence, limited employees will be hired by the business.

The businesses will then deliver and supply the product to public markets in

consignment basis.

The business will make wonton wrappers using wonton wrapper

machine. The machine has a switzerland chilled alloy roller or stainless roller,

the machine is equipped with the automatic powder spreading machine,

using which, the amount of spread powder is adjustable and double-side

powder spreading and wrapper piling can be done at the same time. The part

of the unit contacting the flour products (except the chilled alloy roller) is

made of stainless steel and non-toxic materials, which is up to food hygiene

and safety standards.


B. Production/ Operation Process

The process below shows the sample on how to make wonton wrappers.

STEP 2
STEP 1
Labor: 1
Labor: 1
Equipment: Kneader
Equipment: dough mixer
Kneads for 15 minutes in the
In a large dough mixer
mixer. Once the kneading is
basin, mix flour with salt
done, turn off the mixer and
and then add egg in. Turn
remove the dough hook and
mixer on and mix well.
bowl out of the mixer stand.
Duration: 15 min.
Duration: 15 min.

STEP 3
STEP 4 Labor: 1
Labor: 1 Equipment: wonton wrapper
Equipment: vacuum sealer machine
Take wonton wrapper and Put well-knead dough into the
pile by dozen. Put into a machine. The machine has an
plastic wrapper and vacuum automatic roller,and molder.
seal it. Duration: 5 min. Wonton wrapper will then
automatically form. Duration: 15
min.

STEP 5
Labor: 1
Equipment: Freezer
After the wonton wrapper packed,
store it in a freezer to prevent
microorganisms from penetrating.
Duration:1 5 min.

C. Labor Requirement

No. Description Employment Base Required Quantity


1 Manager Direct Labor 1
2 Cashier Direct Labor 1
3 Packager Direct Labor 1
4 Delivery Personnel Direct Labor 1
D. Machinery and Equipment Requirement

Particulars Qty. EUL Specification Unit Cost Total Cost Origin


Name dumpling wrapper machine
Model LHO-220
Power 3.0KW
Voltage 220V
Capacity 180 pieces/min Iria Trading -
Wonton Wrapper Weight 150kg Cagayan de Oro
Machine 1 10 Dimension 1200*600*1200mm 45,000.00 45,000.00 City
container capacity - 20 Liters
Flour capacity - 8 Kilos
Mixing pole turning speed - 230/120 RPM
Container Turning speed - 18/10 RPM
voltage - 220volts
Iria Trading -
Weight - 80 Kg Cagayan de Oro
Dough Mixer 1 10 Unit Size - 63x38x75 cm 31,450.00 31,450.00 City
Maximum Vacuum: 0.045Mpa
Sealing Width: 40mm-280mm/11 inches
Power Supply: Ac 220/240V 50/60Hz.
Sealing Time:Digitally controlled
Weight:2.5 kg. Iria Trading -
Vacuum Plastic CALL 261 x 03 x 56 Cagayan de Oro
Sealer 1 10 11 inches 3,500.00 3,500.00 City
Place of Origin: China (Mainland) KIM
Fire Extinguisher 1 5 1,200.00 1,200.00
Color: Red MANUFACTURI
Extinguishing agent: ABC dry powder NG
Package: fire extinguisher standard INDUSTRIES -
Brand Name: YTKY powder fire extinguisher Iligan City
Powder percentage: 40%-70%
Valve materal: Brass
Warranty: 5years
Working pressure: 14BAR
Cylinder materail: ST12
Fire extinguisher sizes: 10kg-50kg trolley
Brand: Condura
10.0 cu. ft. Capacity
Freezer 1 10 220v/60Hz 22,000.00 22,000.00
Freezing Capacity: 13kg/ 24 hrs. Quality -
Input Power: 155W Maranding, Lala

Processor: Intel Dual Core DDR3

Arc 722m and 403D mobile and tablet


Octagon -
Computer Set 1 5 15,000.00 15,000.00 Cagayan de Oro
City
Motherboard: 1800B-ITX series Solid
Capacitor for CPU power

Memory: 2GB DDR3 memory


Hard Drive: 500GB SATA hard drive

Graphics: Built-in Intel® 7th generation


(Gen 7) graphics, Output Options : D-Sub,
HDMI

Monitor: 15.6" LED monitor


Blackstone BS1700
Portable Gasoline Generator Set
Portable Generator 1 10 Gasoline Generator Iligan City
11,000.00 11,000.00
Handy and Portable
1400 Maximum Output
Novo -
Glasses 6 5 green medium sized glasses 15 90 Maranding, Lala
Stainless Steel Trash Bin Waste Segregation
3 slot / Box Type
Garbage Cans 2 7 300.00 600.00 Iligan City
Capacity: 70 L per slot w/ free print
Size: 40cm x 102.5cm x 90cm
Novo -
Utensils 20 7 Knife, spoons and and laddle 10 200 Maranding, Lala
Total 130,040.00
Motorbike

Particulars Qty. EUL Description Unit Cost Total Cost Origin


Honda CB110
Model: CB110
Displacement(cc): 109.1
Transmission: 4-speed
Motorcycle 1 15 Starter: Electric/Kick 65,000.00 65,000.00 Emcor-Maranding, Lala
Fuel Tank Capacity(L):8
Weight(kg): 100
L*W*H(mm): 1,967 x 742 x 1,075
Type: Standard,Business
Total 65,000.00 65,000.00

E. Furniture and Fixtures

Particulars Qty. EUL Unit Cost Total Cost Description


Long Table 2 10 5,000.00 10,000.00 Formica
Square Table 2 10 3,200.00 6,400.00 Monoblock (4-seater)
Monoblock Chairs 6 10 300.00 1,800.00 Monoblock (1-seater)
Total 18,200.00
F. Raw Materials
Cost of Sold Raw Materials

Particulars Qty. Unit Unit Cost Total Cost per Day Monthly Cost Yearly Cost
Flour 4.17 kg. 37.00 154.29 4,320.12 51,841.44
Egg 7 pcs 5.00 35.00 980.00 11,760.00
Cornstarch 2 kg. 37.00 74.00 2,072.00 24,864.00
Salt 0.11 kg. 10.00 1.10 30.80 369.60
Total 264.39 7,402.92 88,835.04
G. Production Schedule

The business will open from Mondays through Sundays 8:00 am to 5:00 pm. It will supply public markets twice a week. The

table below shows the production schedule of the business.

Location Monday Tuesday Wednesday Thursday Friday Saturday Sunday


Kapatagan Supply: 1,200 Supply: 1, 600
Public Market packs packs
Maranding Supply: 300
Public Market packs Supply: 400 packs
Tubod Public Supply: 1,500 Supply: 2,000
Market packs packs
Proposed Production: Production: Production: Production: Production: Acquisition of raw Production:
Business 1000 packs 1000 packs 1000 packs 1000 packs 1000 packs supply. 1000 packs
Production: 1000
packs
H. Plant/factory Layout
I. Location Map
J. Waste Disposal System

The business will have 2 separate garbage containers for possible

wastes of the management. As per Provincial ordinance, there must be

separate containers for biodegradable and non-biodegradable waste

products. Waste such as papers, damage egg trays could be classified as

biodegradable waste products. The plastics will be classified as non-

biodegradable waste products. An estimated 5 liters of garbage will be

collected per schedule. The garbage collectors from local government

garbage disposal office will collect these wastes weekly.

K. Quality Control System

a. The business will maintain sanitation in the area. Raw

ingredients will be stored seperately and away from harmful

insects and rodents. Ingredients for the production shall always

be updated to avoid spoilage. Spoiled ingredients shall be

thrown to avoid poisoning.

b. Utilities

• The electricity of the business was pre-installed in the proposed

location. The electricity consumption will be paid monthly in LANECO

and the water supply will be paid also in KAPWAD.

L. Production Cost

Particular Unit produced Cost


302,400.00
Fixed cost 0.07 22,294.90
Variable cost 3.25 983,155.04
Total cost 1,005,449.94
Total production
3.32
cost per unit
Chapter V

ORGANIZATIONAL PLAN

A. Legal Form of Business

The proposed business is a sole proprietorship type of business will be

managed and operated by its employer and employees including its owner

who at the same time the manager. In order to fully operate the business,

legal forms should be acquired. Samples are shown in the next pages.

- Sanitary Permit

- Business Permit

- DTI Registration

B. Organizational Structure

Manager

Delivery
Cashier Packager
Man

Figure 1. Organizational Chart


Functions of Personnel:

1. Manager – plan, or narrow goals from their broadest to most intricate

form.

- organize and create a structure for daily tasks and

communication.

- hire and fire employees

- serve as a directing influence on staff behavior and morale

- control over all of the aspects of the business

- helps in packaging the wonton wrapper

2. Cashier - In charge of collections and disbursements

- Maintain correct cash balances at cash registers

- Process returns and exchanges

- Be aware of all promotions and advertisements that affect

product prices

- Communicate company policies and procedures to

customers

3. Packager – prepares the wonton skin using the machine

- Prepare the wonton skin plastic container and maintains the

quality and promotion of the wonton skin

- Checks the raw materials needed for production

- Packs the wonton skin presentably to the customers.

- On and off the machine/operate the machine

4. Delivery Man – delivers the business product into its destination

- in-charge of customer service


C. Qualifications of Officers

No. of Total
Salary per
Particulars Hrs. Requirements Salary per
month
Devoted year Benefits
Physically fit,
flexible, must be
licensed driver, SSS and
Manager 8 must know how to 9,000.00 108,000.00 PhilHealth
manage a Contribution
business, 21-35
yrs. old
Physically Fit;
preferably female SSS and
Cashier 8 20-25 yrs. Old; 9,000.00 108,000.00 PhilHealth
knows basic Contribution
math

Physically fit,
must have high
tolerance to low
Packager 8 temperature, 9,000.00 108,000.00
quick-mover,
could work under
pressure

licensed driver;
knows how to
drive and SSS and
Delivery
8 maintain 8,000.00 96,000.00 PhilHealth
Personnel
motorbike; Contribution
flexible; 20-25
years old
Total 35,000.00 420,000.00

D. Office Equipment

Equipment Brand Model Useful life Price (PHP)

Calculator CASIO MX-120S 5 1,200.00


E. GANTT Chart of Activities

Month 1 Month 2
Particulars
1 2 3 4 1 2 3 4
Acquisition
of the
Capital
Completion
of Legal
Forms of
the
Business
Plant
Renovation
Acquisition
of Fixed
Assets
Acquisition
of Raw
Materials
Trial of
Equipments
Business
Promotion.
Start of the
business

F. Administrative Expense

Particulars Per Month Payment Per Year Payment


Salary and Wages 35,000.00
Permits and Licenses 3,100.00
Office Supplies 365.00
SSS Contribution 3,895.00
PhilHealth Contribution 875.00
Fire Insurance 1,500.00
Fire Extinguisher Refill 900.00
Utilities 1,300.00
Total 41,435.00 5,500.00
Chapter VI

FINANCIAL STUDY

A. Total Project Cost

Schedule 1 Total Project Cost

Particulars Equity Total Cost


Fixed Assets
Tools, Machinery and Equipment 130,040.00
Plant Renovation 5,000.00
Office Equipment 1,200.00
Motorbike Extension 7,000.00
Motorbike 65,000.00
Furniture and Fixtures 18,200.00
Sub-total 226,440.00
Working Capital:
Permits and License 3,100.00
Miscellaneous Expense 1,200.00
Purchases of Raw Materials 1,850.73
Promotional Expense 1,400.00
Packaging Materials 3,150.00
Salary and Wages 70,000.00
Rent Expense 16,000.00
Utility Cost 1,300.00
Trial of Equipment 1,000.00
Transportation Cost 2,500.00
Sub-total 101,500.73
Total Project Cost 327,940.73

B. Sources of Financing

The owners of the proposed business will invest a total amount of

PHP330,000.00 from their savings. This will be used as starting capital of the

proposed business to acquire equipments, and pay other expenses on pre-

operational activities of the owners.


C. Projected Financial Statement

Supreme Wonton Wrapper Manufacturer


Income Statement
For the Five Year Ended Dec. 31

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Sales (Sched. 1) 6,048,000.00 6,350,400.00 6,667,920.00 7,001,316.00 7,351,381.80
Less:
Purchases of Raw Materials (Sched. 17) 88,835.04 93,276.79 97,940.63 102,837.66 107,979.55
Administrative Expense (Sched. 12) 574,020.00 502,481.00 502,761.80 503,047.50 503,338.19
Rent Expense (Sched. 7) 104,000.00 96,000.00 96,000.00 96,000.00 96,000.00
Miscellaneous Expense (Sched. 11) 26,400.00 25,452.00 25,706.52 25,963.59 26,223.22
Promotional Expense (Sched. 26) 1,400.00 1,414.00 1,428.14 1,442.42 1,456.85
Packaging Materials (Sched. 14) 126,000.00 132,300.00 138,915.00 145,860.75 153,153.79
Repair and Maintenance (Sched. 9) 11,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Trial of Equipment (Sched. 1) 1,000.00 0.00 0.00 0.00 0.00
Transportation Cost (Sched. 10) 50,500.00 48,000.00 48,000.00 48,000.00 48,000.00
Motorbike Registration (Sched. 13) 0.00 730.00 730.00 730.00 730.00
Depreciation Expense (Sched. 24) 22,294.90 22,294.90 22,294.90 22,294.90 22,294.90
Sub-total 1,005,449.94 926,948.70 938,777.00 951,176.82 964,176.49
Gross Operating Profit 5,042,550.06 5,423,451.30 5,729,143.00 6,050,139.18 6,387,205.31
Less: Tax Due (Sched. 30) 1,578,616.02 1,700,504.42 1,798,325.76 1,901,044.54 2,008,905.70
Net Income 3,463,934.04 3,722,946.89 3,930,817.24 4,149,094.64 4,378,299.61
Supreme Wonton Wrapper Manufacturer
Cash Flow Statement
For the Five Year Ended Dec. 31

Particulars Pre-operation Year 1 Year 2 Year 3 Year 4 Year 5


Cash Inflows
Sales (Sched. 1) 0.00 6,048,000.00 6,350,400.00 6,667,920.00 7,001,316.00 7,351,381.80
Add. Investments 330,000.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflows 330,000.00 6,048,000.00 6,350,400.00 6,667,920.00 7,001,316.00 7,351,381.80
Cash Outflows
Acquisition of Fixed Assets (Sched. 1) 226,440.00 0.00 0.00 0.00 0.00 0.00
Purchases of Raw Materials (Sched. 17) 1,850.73 86,984.31 93,276.79 97,940.63 102,837.66 107,979.55
Administrative Expense (Sched. 12) 74,400.00 499,620.00 502,481.00 502,761.80 503,047.50 503,338.19
Rent Expense (Sched. 7) 16,000.00 88,000.00 96,000.00 96,000.00 96,000.00 96,000.00
Miscellaneous Expense (Sched. 11) 1,200.00 25,200.00 25,452.00 25,706.52 25,963.59 26,223.22
Packaging Materials (Sched. 14) 3,150.00 122,850.00 132,300.00 138,915.00 145,860.75 153,153.79
Motorbike Registration (Sched. 13) 0.00 0.00 730.00 730.00 730.00 730.00
Promotional Expense (Sched. 26) 1,400.00 0.00 1,414.00 1,428.14 1,442.42 1,456.85
Repair and Maintenance (Sched. 9) 0.00 11,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Trial of Equipment (Sched. 1) 1,000.00 0.00 0.00 0.00 0.00 0.00
Transportation Cost (Sched. 10) 2,500.00 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
Income Tax Due (Sched. 30) 0.00 1,578,616.02 1,700,504.42 1,798,325.76 1,901,044.54 2,008,905.70
Total Cash Outflows 327,940.73 2,460,270.33 2,605,158.21 2,714,807.85 2,829,926.45 2,950,787.29
Net Cash Flow 2,059.27 3,587,729.67 3,745,241.79 3,953,112.15 4,171,389.55 4,400,594.51
Cash Balance, Beg. 0.00 2,059.27 3,589,788.94 7,335,030.73 11,288,142.88 15,459,532.43
Cash Balance, End 2,059.27 3,589,788.94 7,335,030.73 11,288,142.88 15,459,532.43 19,860,126.94
Supreme Wonton Wrapper Manufacturer
Balance Sheet
For the Five Year Ended Dec. 31

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Assets
Current Assets
Cash 3,589,788.94 7,335,030.73 11,288,142.88 15,459,532.43 19,860,126.94
Total Current Assets 3,589,788.94 7,335,030.73 11,288,142.88 15,459,532.43 19,860,126.94
Non-Current Assets
Tools, Machinery and Equipment (Sched. 1) 130,040.00 130,040.00 130,040.00 130,040.00 130,040.00
Plant Renovation (Sched. 1) 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Office Equipment (Sched. 1) 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Motorbike (Sched. 1) 65,000.00 65,000.00 65,000.00 65,000.00 65,000.00
Motorbike Extension (Sched. 1) 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00
Furniture and Fixtures (Sched. 1) 18,200.00 18,200.00 18,200.00 18,200.00 18,200.00
Total 226,440.00 226,440.00 226,440.00 226,440.00 226,440.00
Less: Accumulated Depreciation (Sched. 25) 22,294.90 44,589.81 66,884.71 89,179.62 111,474.52
Total Non-Current Assets 204,145.10 181,850.19 159,555.29 137,260.38 114,965.48
Total Assets 3,793,934.04 7,516,880.92 11,447,698.17 15,596,792.81 19,975,092.42
Liabilities and Owner's Equity
Liabilities
Accounts Payable 0.00 0.00 0.00 0.00 0.00
Total Liabilities 0.00 0.00 0.00 0.00 0.00
Owner's Equity
Capital, Beg. 330,000.00 3,793,934.04 7,516,880.92 11,447,698.17 15,596,792.81
Add: Net Income 3,463,934.04 3,722,946.89 3,930,817.24 4,149,094.64 4,378,299.61
Capital, End 3,793,934.04 7,516,880.92 11,447,698.17 15,596,792.81 19,975,092.42
Total Liabilities and Owner's Equity 3,793,934.04 7,516,880.92 11,447,698.17 15,596,792.81 19,975,092.42
D. Financial Analysis

a. Return on Investment

Return on Investment=Ave. Annual Net Income/Total Investments X

100%

Year Net Income

1 3,463,934.04

2 3,722,946.89

3 3,930,817.24

4 4,149,094.64

5 4,378,299.61

Total Net Income 19,645,092.42

Divided by Critical Asset Life 5

Average Net Income 3,929,018.48

Total Project Cost 327,940.73

Return on Investment 1198.09%

The table shows the return on investment of the proposed business. It

shows that it returns 1,198.09*% of the investment cost after considering its

critical assets life (equipments). Hence, the proposed business is desirable to

invest.
b. Payback Period

Cummulative Payback
Net Income+
Year Total Period
Depreciation
1 3,486,228.94 3,486,228.94 1
2 3,745,241.79 7,231,470.73
3 3,953,112.15 11,184,582.88
4 4,171,389.55 15,355,972.43
5 4,400,594.51 19,756,566.94
Total Project Cost 327,940.73
Less Cummulative
Total where investment 3,486,228.94
is to be recovered
Total amount to be
-3,158,288.21
recovered
Divided by Net
Income+Dep.
3,486,228.94
Where the investment is
recovered
Quotient -0.905932532
Years
Months(Multiplied by
-10.87119038 -11
12)
Payback Period less than a year

The proposed business pays back its investment cost within less than

a year. Hence, it pays back less than its investment life. With this, we can

conclude that it is worth to continue.


c. Net Income: Sales Ratio

Net Income: Sales Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


3,463,934. 3,722,946. 3,930,817. 4,149,094. 4,378,299.
Net Income
04 89 24 64 61
Gross 6,048,000. 6,350,400. 6,667,920. 7,001,316. 7,351,381.
Revenue 00 00 00 00 80
Net Income
57.27% 58.63% 58.95% 59.26% 59.56%
Rate

Series1

43.71% 45.40%
39.86% 41.82%
37.38%

Year 1 Year 2 Year 3 Year 4 Year 5

The table and figure above shows an increasing trend of ratio from

year 1 through year 5. Thus, this means that the business is profitable.
d. Break-even Point

Contribution Margin = Sales – Variable Cost

Sales 6,048,000.00
Less: Variable Cost 983,155.04
Total 5,064,844.96

Contribution Margin per Unit = Selling Price Average – Unit Cost

Average Selling Price 20.00


Less: Average Unit Cost 3.32
Total 16.68

Contribution Margin Ratio = TCM/ Total Sales X 100%

Total Contribution Margin 5,064,844.96


Divided By: Total Sales 6,048,000.00
Quotient 0.837441296
Multiply by: 100%
Contribution Margin Ratio 83.74%

Break-even Point in unit

Unit Produced per Day 1,000


Multiplied by: Production Cost per Unit 3.32
Product 3,324.90
Divided by:Selling Price 20.00
Qoutient 166.25
Break-even Point in Unit 166.25
E. List of Assumptions

Assumptions Used:

 Projected Sales of the business will increase by 5% annually

 Purchases of Raw materials of the business will increase by 5%

annually

 Packaging Materials of the business will increase by 5% annually

 Utility Cost of the business will increase by 2% annually

 Repairs and maintenance is amounting to PHP11,000.00 annually

 Rent expense will be paid with one month advance and one month

deposit amounting to PHP8,000.00 per month

 DTI registration will be paid every 5 years

 Depreciation Cost Formula will be:

Depreciation Cost = Depreciable Amount / Useful Life

F. Schedules

Schedule 2 Business Permit

Particulars Amount
Billboard Fee 250.00
Sanitary Fee 300.00
Municipal ecology 300.00
Mayor's Permit 500.00
Weight and
50.00
Measure
Zoning Fee 50.00
Basic Tax
1000.00
Clearance
Total 2450.00
Schedule 3 Permits and Licenses

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Business Permit 2,450.00 2,450.00 2,450.00 2,450.00 2,450.00
DTI Registration 515.00 0.00 0.00 0.00 0.00
Cedula 75.00 75.00 75.00 75.00 75.00
Purok Clearance 10.00 10.00 10.00 10.00 10.00
Barangay Clearance 50.00 50.00 50.00 50.00 50.00
Total 3,100.00 2,585.00 2,585.00 2,585.00 2,585.00

Schedule 4 Salary and Wages

Description Salary per Month


Manager 9,000.00
Cashier 9,000.00
Packager 9,000.00
Delivery Personnel 8,000.00
Total 35,000.00

Schedulle 5 PhilHealth and SSS Contribution

Salary per Qty PhilHealth SSS


Description Month . Contribution Contribution
1
Manager 9,000.00 225.00 1,000.00
1
Cashier 9,000.00 225.00 1,000.00

Packager 9,000.00 1 225.00 1,000.00


Delivery
1
Personnel 8,000.00 200.00 895.00

Total 35,000.00 875.00 3,895.00

Schedule 6 Office Supplies

Unit Total Cost per Total Cost per


Supplies: Quantity Price Month Year
Notebook 1 10.00 10.00 120.00
Ballpen 1 5.00 5.00 60.00
Cleaning
Materials 4 5.00 20.00 240.00
Apron 3 100.00 300.00 3,600.00
Hairnet 6 5.00 30.00 360.00
Total 365.00 4,380.00
Schedule 7 Rent Esxpense

Advance
Particulars Payment Monthly Yearly

Rent Expense 8,000.00 8,000.00 96,000.00

Schedule 8 Utility Cost

Pre-
Particulars operation Year 1 Year 2 Year 3 Year 4 Year 5
Water 300.00 3,600.00 3,636.00 3,672.00 3,708.00 3,744.00
12,000.0 12,240.0 12,484.8 12,734.5 12,989.1
Electricity 1,000.00 0 0 0 0 9
15,600.0 15,876.0 16,156.8 16,442.5 16,733.1
Total 1,300.00 0 0 0 0 9

Schedulle 9 Repair and Maintenance

Cost annually 11,000.00

Schedule 10 Transportation Cost

Cost of
gasoline Amount
Weekly 400.00
Monthly 1,600.00
Yearly 19,200.00

Schedule 11 Miscellaneous Expense

Pre- Daily Weekly Monthly Yearly


Particulars operation Cost Cost Cost Cost
Snacks (Food and
Drinks) 1,200.00 75.00 525.00 2,100.00 25,200.00
Total 1,200.00 75.00 525.00 2,100.00 25,200.00

Schedule 12 Annual Administrative Expense

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Salary and 420,000.0 420,000.0 420,000.0 420,000.0 420,000.0


Wages 0 0 0 0 0
Permits and
Licenses 3,100.00 2,585.00 2,585.00 2,585.00 2,585.00
Office
Supplies 4,380.00 4,380.00 4,380.00 4,380.00 4,380.00
SSS
Contribution 46,740.00 46,740.00 46,740.00 46,740.00 46,740.00
PhilHealth
Contribution 10,500.00 10,500.00 10,500.00 10,500.00 10,500.00

Fire Insurance 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00


Fire
Extinguisher
Refill 900.00 900.00 900.00 900.00 900.00

Utilities 15,600.00 15,876.00 16,156.80 16,442.50 16,733.19

502,720.0 502,481.0 502,761.8 503,047.5 503,338.1


Total 0 0 0 0 9

Schedule 13 Motorbike Registration

Particulars Cost
Registration 280.00
Emmission Test 200.00
Insurance 250.00
Total 730.00

Schedule 14 Packaging Material

Total Cost per


Particulars Qty. Unit Unit Cost Day Monthly Cost Yearly Cost

Plastic 10 packs 45.00 450.00 12,600.00 126,000.00

Total 45.00 450.00 12,600.00 126,000.00

Schedule 15 Projected Volumes

Particulars Maximum Minimum Average Total


Per Day
(packs) 1,000 800 900 900
Per Week
(packs) 6,300
Per Month
(packs) 25,200
Per Year
(packs) 302,400
Schedule 16 Projected Sales

Particulars Per Day Per Week Per Month Per Year


Production
Volume 900 6,300 25,200 302,400

Price per Pack 20.00 20.00 20.00 20.00


Projected
Sales 18,000.00 126,000.00 504,000.00 6,048,000.00

Schedule 17 Purchases of Raw Materials

Unit Total Cost Monthly


Particulars Qty. Unit Cost per Day Cost Yearly Cost

Flour 4.17 kg. 37.00 154.29 4,320.12 51,841.44

Egg 7 pcs 5.00 35.00 980.00 11,760.00

Cornstarch 2 kg. 37.00 74.00 2,072.00 24,864.00

Salt 0.11 kg. 10.00 1.10 30.80 369.60

Total 264.39 7,402.92 88,835.04

Schedule 18 Depreciation Expenses of Tools, Machinery and Equipment

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Wonton Wrapper Machine 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00
Total Cost 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00
Residual Value 0.00 4,500.00 9,000.00 13,500.00 18,000.00
Life in Number of Periods 10 9 8 7 6
Annual Depreciation 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00

Dough Mixer 31,450.00 31,450.00 31,450.00 31,450.00 31,450.00


Total Cost 31,450.00 31,450.00 31,450.00 31,450.00 31,450.00
Residual Value 0.00 3,145.00 6,290.00 9,435.00 12,580.00
Life in Number of Periods 10 9 8 7 6
Annual Depreciation 3,145.00 3,145.00 3,145.00 3,145.00 3,145.00

Vacuum Plastic Sealer 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00


Total Cost 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00
Residual Value 0.00 350.00 700.00 1,050.00 1,400.00
Life in Number of Periods 10 9 8 7 6
Annual Depreciation 350.00 350.00 350.00 350.00 350.00
Computer Set 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Total Cost 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Residual Value 0.00 3,000.00 6,000.00 9,000.00 12,000.00
Life in Number of Periods 5 4 3 2 1
Annual Depreciation 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00

Portable Generator 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00


Total Cost 11,000.00 11,000.00 11,000.00 11,000.00 11,000.00
Residual Value 0.00 1,100.00 2,200.00 3,300.00 4,400.00
Life in Number of Periods 10 9 8 7 6
Annual Depreciation 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00

Garbage Cans 600.00 600.00 600.00 600.00 600.00


Total Cost 600.00 600.00 600.00 600.00 600.00
Residual Value 0.00 120.00 240.00 360.00 480.00
Life in Number of Periods 5 4 3 2 1
Annual Depreciation 120.00 120.00 120.00 120.00 120.00

Fire Extinguisher 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00


Total Cost 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Residual Value 0.00 240.00 480.00 720.00 960.00
Life in Number of Periods 5 4 3 2 1
Annual Depreciation 240.00 240.00 240.00 240.00 240.00

Freezer 22,000.00 22,000.00 22,000.00 22,000.00 22,000.00


Total Cost 22,000.00 22,000.00 22,000.00 22,000.00 22,000.00
Residual Value 0.00 2,200.00 4,400.00 6,600.00 8,800.00
Life in Number of Periods 10 9 8 7 6
Annual Depreciation 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00

Glasses 90.00 90.00 90.00 90.00 90.00


Total Cost 90.00 90.00 90.00 90.00 90.00
Residual Value 0.00 18.00 36.00 54.00 72.00
Life in Number of Periods 5 4 3 2 1
Annual Depreciation 18.00 18.00 18.00 18.00 18.00

Utensils 200.00 200.00 200.00 200.00 200.00


Total Cost 200.00 200.00 200.00 200.00 200.00
Residual Value 0.00 28.57 57.14 85.71 114.29
Life in Number of Periods 7 6 5 4 3
Annual Depreciation 28.57 28.57 28.57 28.57 28.57
TOTAL 14,701.57 14,701.57 14,701.57 14,701.57 14,701.57

Schedule 19 Depreciation Expenses of Plant Renovation

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Plant Renovation 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Total Cost 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Residual Value 0.00 500.00 1,000.00 1,500.00 2,000.00
Life in Number of Periods 10 9 8 7 6
Annual Depreciation 500.00 500.00 500.00 500.00 500.00

Schedule 20 Depreciation Expenses of Furniture and Fixtures

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Furniture and Fixtures 18,200.00 18,200.00 18,200.00 18,200.00 18,200.00
Total Cost 18,200.00 18,200.00 18,200.00 18,200.00 18,200.00
Residual Value 0.00 1,820.00 3,640.00 5,460.00 7,280.00
Life in Number of Periods 10 9 8 7 6
Annual Depreciation 1,820.00 1,820.00 1,820.00 1,820.00 1,820.00

Schedule 21 Depreciation Expenses of Motorbike

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


65,000.0 65,000.0 65,000.0 65,000.0 65,000.0
Motorbike
0 0 0 0 0
65,000.0 65,000.0 65,000.0 65,000.0 65,000.0
Total Cost 0 0 0 0 0
13,000.0 17,333.3
Residual Value 0.00 4,333.33 8,666.67 0 3
Life in Number of
Periods 15 14 13 12 11
Annual Depreciation 4,333.33 4,333.33 4,333.33 4,333.33 4,333.33

Schedule 22 Depreciation Expense of Office Equipment

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Office Equipment 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Total Cost 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Residual Value 0.00 240.00 480.00 720.00 960.00
Life in Number of Periods 5 4 3 2 1
Annual Depreciation 240.00 240.00 240.00 240.00 240.00
Schedule 23 Depreciation Expenses of Motorbike Extension

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Motorbike Extension 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00
Total Cost 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00
Residual Value 0.00 700.00 1,400.00 2,100.00 2,800.00
Life in Number of Periods 10 9 8 7 6
Annual Depreciation 700.00 700.00 700.00 700.00 700.00

Schedule 24 Total Depreciation Expenses

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Tools, Machinery and 10,481. 10,481. 10,481. 10,481. 10,481.
Equipment 57 57 57 57 57
1,820.0 1,820.0 1,820.0 1,820.0 1,820.0
Furniture and Fixtures 0 0 0 0 0
Plant Renovation 500.00 500.00 500.00 500.00 500.00
4,333.3 4,333.3 4,333.3 4,333.3 4,333.3
Motorbike 3 3 3 3 3
Motorbike Extension 700.00 700.00 700.00 700.00 700.00
Office Equipment 240.00 240.00 240.00 240.00 240.00
18,074. 18,074. 18,074. 18,074. 18,074.
Total Depreciation Cost 90 90 90 90 90

Schedule 25 Accumulated Depreciation Expenses

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Accumulated Depreciation 18,074. 36,149. 54,224. 72,299. 90,374.
Expense 90 81 71 62 52

Schedule 26 Promotional Expense

Particulars Cost Qty. Yearly Cost

Tarpaulin 200.00 7 1,400.00

Total 1,400.00
Schedule 27 SSS Contribution
Schedule 28PhilHealth Contribution
Schedule 29 BIR Policy

If Taxable Income is: Tax Due is


Not over 10, 000.00 5%
Over 10, 000.00 but not over 30,000.00 500+10% of the excess over 10,000
Over 30,000.00 but not over 70,000.00 2,500+15% of the excess over 30,000
Over 70,000.00 but not over
8,500+20% of the excess over 70,000
140,000.00
Over 140,000.00 but not over 22,500+25% of the excess over
250,000.00 140,000
Over 250,000.00 but not over 50,000+30% of the excess over
500,000.00 250,000
125,000+32% of the excess over
Over 500,000.00
500,000

Schedule 30 Tax Due

Particulars Year 1 Year 2 Year 3 Year 4 Year 5


Income Before 5,030,05 5,410,82 5,716,39 6,037,26 6,374,19
Tax 0.06 6.30 1.75 0.42 7.76
Less: Basic 500,000. 500,000. 500,000. 500,000. 500,000.
Amount 00 00 00 00 00
4,530,05 4,910,82 5,216,39 5,537,26 5,874,19
Excess 0.06 6.30 1.75 0.42 7.76
Multiply: Tax
Percentage 0.32 0.32 0.32 0.32 0.32
1,449,61 1,571,46 1,669,24 1,771,92 1,879,74
Sub-Total 6.02 4.42 5.36 3.33 3.28
125,000. 125,000. 125,000. 125,000. 125,000.
Add: Basic Tax 00 00 00 00 00
1,574,61 1,696,46 1,794,24 1,896,92 2,004,74
Income Tax Due 6.02 4.42 5.36 3.33 3.28