A Proposed Production of Piezoelectricity in The Municipality of Barili

“A PROPOSED PRODUCTION OF PIEZOELECTRICITY IN THE
MUNICIPALITY OF BARILI”
_________________
A Project Feasibility Presented to
The Faculty of the College of Commerce
University of San Jose – Recoletos
Cebu City, Philippines
__________________
In Partial Fulfillment
Of the Requirements for the Degree
BACHELOR OF SCIENCE IN MANAGEMENT ACCOUNTING
_________________
By:
CHARITY CALISANG JANINE JOYCE CORTES
LYXEN FANO ICYLE CLEIN FERRER
REGINO BRENDION URSAL
JANUARY 2018
APPROVAL SHEET
This Project Feasibility Study entitled “A Proposed Production of

Piezoelectricity in the Municipality of Barili”, prepared and submitted by
Regino Brendion Ursal, Charity Calisang, Janine Joyce Cortes, Lyxen Fano,
and Icyle Clein Ferrer in partial fulfillment of the requirements for the degree of
Bachelor of Science in Bachelor of Science in Management Accounting, is hereby
accepted and recommended for Oral Examination.
MS. MERADEL COSTAN, CPA

Adviser
ACCEPTED as partial fulfillment of the requirements for the Degree of Bachelor

of Science in Management Accounting.
DR. EDGAR R. DETOYA, CPA

Dean, College of Commerce
APPROVED by the Tribunal at the Oral Examination with the grade of PASSED.
MS. JASMINE PEREZ, CPA, CTT

Member
MRS. CRISTINA FLORABEL LIM, MMBM

Member
MS. KRISTINE JUNE UY, CPA, CAT, MBA

Chairman of the Panel
ACKNOWLEDGEMENT
The proponents would like to thank those people who shared their time,
knowledge, efforts, and expertise in the completion of this feasibility study for it
would not have been possible without their supervision, guidance, and assistance.
To Ms. Meradel Costan, CPA, the researchers’ adviser for her
encouragement, guidance, and her expertise which facilitated the completion of
this feasibility study. Above all, for her selfless motherly support in providing
various suggestions and supervisions that helped the researchers to be equipped
with knowledge and determination.
The proponents would also like to extend their thanks to their Parents for
being supportive, understanding, and inspiring in many ways, as well as for giving
their both financial and emotional support.
To Engr. Reynaldo Ruedas, and some of the proponents’ engineering
friends for the help in the success of the technicalities of the study.
To the respondents who willingly spare their time in answering our
questionnaires for the execution of this study.
To whose people who in one way or another, have contributed to the
accomplishment and completion of this feasibility study. Every person who has
been part in this project will be forever cherished.

A deep gratitude also extended to the researchers’ ever-supportive
classmates and friends, who gave their full support and encouragement during
difficult times which contributed to the completion of the study.
Also, to the proponents’ panelists, Mrs. Cristina Florabel Lim, MMBM, for
her acquainted suggestions regarding the marketing aspect of the study. To Ms.
Jasmine Perez, CPA, CTT and Ms. Kristine June Uy, CPA, CAT, MBA for the
advices to our financials. It would have been difficult for us without your expertise.
Above all, the proponents would like to give the greatest gratitude and
acknowledgement to our Almighty God who guided and gave them strength to
surpass all the challenges that they faced during the fulfillment of the study. His
divine intercession had given them knowledge and courage in the pursuit of
accomplishing and fulfilling the study.
REGINO BRENDION URSAL
ICYLE CLEIN FERRER
LYXEN FANO
CHARITY CALISANG
JANINE JOYCE CORTES

Executive Summary
The relentless growth of modern technology and the advances of human
cognitive creates an opportunity to each individual to scheme possible solutions
to major problems that exists as far as humans can remember.
Determined to draw on with great innovation, researchers and other
knowledgeable individuals come up with energy harvesting. Energy Harvesting is
the process by which energy is derived from external sources example solar
power, thermal energy, wind energy, salinity gradients, and kinetic energy, also
known as ambient energy, captured, and stored for small, wireless autonomous
devices, like those used in wearable electronics and wireless sensor networks.
The proponents of the study conducted a research about the accidents
happened in Cebu province. The proponents had found out that most accidents
occurred in sudden road curves and dark pathways aside from alcoholism and the
like. The Municipality of Barili manifested the most frequent causes of road
accidents, thus, the proponents decided to focus on that location. The inadequate
number of streetlights in the area added the risk and possible occurrence of worst
accidents that may happen in the future if not been addressed immediately to
proper authorities.
Piezoelectricity is a type of energy harvesting system in which waste
energy from moving object creates a pressure that is stored and converted into
renewable energy. This system is not new to other globally competitive countries
but it is unknown in the Philippines. As of now, the researchers from different
universities around the globe are currently testing the capacity and the weight that
one piezo device can carry. Fortunately, it is proven and tested that this material
is capable of generating enough electricity that can light up two to three
streetlights.
The proponents of the study wish to advise any external user that this
readable material is accurate and concise as far as the proponents are concerned.
Any suggestions and recommendations are accepted wholeheartedly for the
benefit of the mass majority.

TABLE OF CONTENTS
CHAPTER PAGE NO.
I THE PROBLEM AND ITS SCOPE 1
INTRODUCTION 1
Rationale of the Study 1
STATEMENT OF THE PROBLEM 2
SIGNIFICANCE OF THE STUDY 3
RESEARCH DESIGN 5
Research Environment 6
Research Methodology and Instruments 6
Research Respondents 6
Limitation of the Study 7
DEFINITION OF TERMS 8
II TECHNICAL ASPECT 11
PRODUCT/SERVICE DESCRIPTION 12
RAW MATERIALS 16
TOOLS, MACHINERIES AND EQUIPMENT 20
PRODUCTION SCHEDULE/ CAPACITY 22
PRODUCTION LOCATION 24
PRODUCTION FLOOR PLAN 26
WASTE DISPOSAL MANAGEMENT 26
III MARKETING ASPECT 28
MARKETING STRATEGY 28
i
Product Offers 29
Logo 32
Tagline 33
Advertising 33
Customers Testimonies 34
TARGET MARKET 35
DEMAND 36
PROJECTED DEMAND 37
SUPPLY 38
PROJECTED ANNUAL SUPPLY 38
PROJECTED MARKET SHARE 39
PRICING POLICY 40
IV MANAGEMENT ASPECT 44
MANAGEMENT DURING THE PRE-OPERATING PERIOD 45
Project Timetable 45
MANAGEMENT DURING THE OPERATING PERIOD 48
Form of Business Organization 49
Organizational Structure 50
Job Titles and Description 50
Job Specifications 52
Delineation of Duties 54
Working Schedule 56
Recruitment Program 56
ii
Compensation 57
Employee Benefits 58
Management Policies 59
Violations and Sanctions 60
V LEGAL AND TAXATION ASPECTS 61
LEGAL ASPECT 61
Registration of Business Name 62
Securing Permits and Licenses 64
Business Permit 64
Registration for Land Transportation Office 67
Application for the SSS Membership 69
Application for PhilHealth Insurance Membership 69
Application of the Membership to HDMF 71
Registration with the Bureau of Internal Revenue 74
Registration on DOLE 77
TAXATION ASPECT 79
Value-Added Tax 80
Expanded Withholding Tax 80
Documentary Stamp Tax 80
VI FINANCING ASPECT 82
SOURCES OF FINANCING 82
ESTIMATED PROJECT COST 83
VII FINANCIAL ASPECT 91
iii
GENERAL ASSUMPTIONS 81
STATEMENT OF FINANCIAL PERFORMANCE 97
STATEMENT OF CHANGES IN OWNERS’ EQUITY 98
STATEMENT OF CASH FLOWS 99
STATEMENT OF FINANCIAL POSITION 100
FINANCIAL SCHEDULES 103
FINANCIAL STATEMENT ANALYSIS 133
SENSITIVITY ANALYSIS 137
VIII SOCIO-ECONOMIC DESIRABILITY 141
GOVERNMENT 141
ECONOMIC 142
IX STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS 143
SWOT MATRIX 144
CONVERSIONS OF WEAKNESSES TO STRENGTHS 145
CONVERSIONS OF THREATS TO OPPORTUNITIES 146
X SUMMARY, FINDINGS, CONCLUSION AND
RECOMMENDATIONS 147
FINDINGS 147
CONCLUSIONS 151
RECOMMENDATIONS 151
BIBLIOGRAPHY
APPENDICES
CURRICULUM VITAE
iv
LIST OF TABLES
Table No. Title Page No.
1 Production Phase 1 22
2 Production Phase 2 23
3 Factor Rating 25
4 Projected Annual Demand 37
5 Projected Annual Supply 38
6 Projected Market Share 39
7 Raw Materials Used 41
8 Total Labor Cost 41
9 Factory Overhead 42
10 Total Manufacturing Cost 42
11 Selling Price 43
12 Gantt Chart 46
13 Working Schedule 56
14 Compensation Schedule 57-58
15 Violations and Sanctions 60
16 Estimated Project Cost 83
17 Total Manufacturing Cost 92
18 Selling Price 92
19 Current Ratio 133
20 Debt Ratio 134
v
22 Equity Ratio 134
23 Net Profit Ratio 135
24 Return on Investment 135
25 Return on Equity 135
26 Return on Total Assets 136
27 Contribution Margin Ratio 136
28 Break-even Point in Peso 136
29 Contribution Margin Per Unit 137
30 Break-even Point in Units 137
31 Comparative Analysis – Net Income 139
32 Comparative Analysis – Return on Investments 139
33 Comparative Analysis – Return on Equity 139
34 Comparative Analysis – BEP in Peso 139
35 Comparative Analysis – BEP in Units 140
vi
LIST OF FIGURES
Figure No. Title Page No.
1 Circuit Design 15
2 Prototype 15
3 Capacitor 16
4 Connecting Wire 17
5 Deep Cycle Battery 17
6 Diode 17
7 Ferric Chloride 17
8 Flat Bars 18
9 No. 14 Duplex Wire 18
10 Piezoelectric Sensor 18
11 Printed Circuit Board 18
12 Security Light 19
13 Spring 19
14 Steel Pipe 19
15 Steel Plate 19
16 Charge Controller 20
17 Metal Hacksaw 20
18 Multimeter 20
19 Pliers 21
20 Soldering Iron 21
vii
21 Soldering Lead 21
22 Wire Strippers 21
23 Circuit Layout 24
24 Production Floor Plan 26
25 Cost-Benefit Analysis Figures 30
26 Logo 32
27 Schedule for Determination of the Annual Demand 36
for Piezoelectricity Device
28 Organizational Chart 50
29 SWOT Matrix 139
30 Conversion of Weaknesses to Strengths and 140
Threats to Opportunities
viii
LIST OF SCHEDULES
Schedule No. Name Page
1 Project Feasibility Cost 84
2 Permits and Licenses 84
3 Leasehold Improvements 85
4 Production Tools and Equipment 85
5 Office Equipment 86
6 Office Furniture and Fixture 86
7 Production Furniture and Fixture 86
8 Office Supplies 87
9 Direct Materials 87
10 Indirect Materials 88
11 Salaries and Wages 88
12 Retainer's Expense 88
13 Rent Expense 88
14 Utilities Expense 88
15 Miscellaneous Expense 89
16 Repairs and Maintenance 89
17 Fuel Expense 89
18 Installation Expense 89
19 Delivery Van 89
20 Advertising Expense 90
ix
21 Sales 103
22 Inventory 103
23 Spoilage Goods 104
24 Direct Materials 104
25 Indirect Materials 106
26 Direct Labor 107
27 SSS Contribution 108
28 PhilHealth Contribution 109
29 PAG-IBIG Contribution 110
30 13th Month Pay 111
31 Indirect Labor 112-113
32 Utilities Expense 114
33 Accrued Utilities Expense 114
34 Salaries Expense 115
35 Rent Expense 115
36 Accrued Rent Expense 116
37 Accrued Salaries Expense 116
38 Permits and Licenses 117
39 Miscellaneous Expense 118
40 Interest Expense 118
41 Accrued Interest Expense 119
42 Repairs and Maintenance 119
x
43 Depreciation Expense - Office Equipment 120
44 Depreciation Expense - Office Furniture 120
and Fixtures
45 Depreciation Expense - Leasehold 121
Improvements
46 Depreciation Expense - Production 121
Equipment
47 Depreciation Expense - Production 121
Equipment
48 Depreciation Expense - Delivery Van 122
49 Fuel Expense 122
50 Office Supplies Expense 123
51 Accrued SSS Contribution 124
52 Accrued PhilHealth Contribution 124
53 Accrued PAG-IBIG Contribution 125
54 Accounts Payable 125
55 Factory Overhead 126
56 Advertising Expense 127
57 Installation Expense 127
58 Operating Expenses 128
59 Accounts Receivable 129
xi
60 Allowance For Doubtful Account Expense 129
61 Accounts Receivable-Net Realizable Value 129
62 Cost of Goods Sold 130
63 Retainer's Fee 130
64 VAT Payable 130
65 Accrued Withholding Tax 131
66 Total Accruals Expense 131
67 Uncollectible Account Expense 132
68 Income Tax Expense 132
xii
The Problem And Its Scope |1
CHAPTER I
THE PROBLEM AND ITS SCOPE
INTRODUCTION
The Rationale of the Study
In the report of the Philippine Statistics Authority of 2015, the main cause of
road accidents in 2012 includes road defects, self-accidents, and others reaching
the number of accidents into 780, 562 and 703, respectively per month. The
number of accidents changes increasingly or decreasing as the year passes by.
Road defect refers to a road which is under repair or unrepaired. Self-accidents
are accidents that happened due to human error and an inadequate number of
streetlights.
Other than that, the Law Office of Michael Pines, APC provides that there
are top twenty-five (25) causes of car accidents which include rain, night driving,
potholes, fog, and deadly curves. These five (5) causes of car accidents have been
specifically selected because it is the major reason for the study. Therefore, it
coincides with the various accidents in the Philippines.
The road plays a vital role in the economy. It has a big impact on
transportation, hence it should be safe and secured for everyone. The Local
Government Unit (LGU) of Barili will be the participating stakeholder in this study.
Since the LGU has the power to convey in implementing the study. The study aims
to encourage the municipality to offer and promote a world-class public safety and
secured travel experience to everyone with less cost.

Due to insufficient data, the proponents decided to have an extensive
survey of the commuters in the South Bus Terminal (SBT) that tend to
pass Barili road. The commuters include drivers, conductors, and residents
of Barili itself, and other neighboring municipalities. There are 78.59% who agreed
that some areas of Barili road are prone to accidents; 51.49% who said that
inadequate streetlights and road signs are the main cause of accidents. Lastly,
there are 93.21% who agreed that providing more streetlights can
lessen the accidents in the area.
The proponents partnered with the LGU of Barili comprising the city
engineer, councilors, and the mayor himself. Aside from helping the place to
promote and offer word class public safety and security travel experience, the
proponents would also help the beneficiaries of the study to reduce
their expenditures allocated to streetlights and the like. The main focus of this
project is to save commercialized energy and use waste energy as a substitute
electricity that certainly can help the community.
STATEMENT OF THE PROBLEM
The problem that has occurred and discovered by the proponents is the
unsafe roads of Barili, Cebu because of non-dispersion of streetlights along its
roads. This will increase vehicular accidents in the area that damages property and
life. During night-time, the dark pathway and sudden curves are unnoticeable thus
causing accidents.
The proponents had conducted a research study of a device that will power
streetlights along the road. Its significance is that it uses and converts waste
energy into a usable energy as a substitute source of power for the streetlights
in Barili, Cebu. This study marks the municipality's innovation on basic precautions
to the piezoelectric system in providing a safer and more secure travel experience
to everybody. The purpose of the study is to decide the viability and feasibility of
the Proposed Study of Piezoelectricity that powers streetlights. Several parts of
this study were carefully made to specifically answer the following:
1. Is the proposed project possible in terms of the following aspects?
1.1 Technical
1.2 Marketing
1.3 Management
1.4 Financing
1.5 Legal and Taxation Aspect
1.6 Financial
1.7 Socio-Economic Desirability
1.8 Strengths, Weaknesses, Opportunities, and Threats
2. Based on the findings, what recommendation will be proposed for the
project?
SIGNIFICANCE OF THE STUDY
Generally, feasibility studies look at the workable idea that highlights on
finding probable problems and attempt to answer one main question: Will the
proposed study work and should the proponents do with it? In simple terms, a
feasibility study is an analysis of how successfully a project can be completed,

accounting for factors that affect it such as economic, technological, legal and
scheduling factors.
Thus, this study was proposed to use an effective and safe setting in the
areas which are prone to accidents. Moreover, the proposed study will benefit
Barili for it will offer a lesser chance to have accidents in the area.
Residents, and Neighboring Residents/Municipalities
This study would be of interest to public and private vehicles that pass
through the roads of Barili which are prone to accidents based on the assessment
conducted. In its simplest terms, this study focuses on improvement of streetlights
on the road areas of Barili providing safety to commuters and people living in the
area. Fewer accidents mean peaceful community and less worry on the part of
living in Barili. This also benefits neighboring communities providing ease and
convenience of a road during the night.
Local Government Unit
It will create a cost-saving expenditure spending compared to the usual use
of commercialized energy for the streetlights. In addition, this means efficient
governance through energy-saving which could create attention from tourist and
other countries.
Tourism and Economic Department of LGU
The project is not common anywhere but energy-saving is a worldwide
initiative which in this form could attract not only enthusiast but tourist or local
visitors who are curious.

Future Proponents and Users
This study will serve as other note and guide to future researchers. It will
aid them in the future study and will help them understand the problem and
solutions proposed by the project proponents.
The Proponents
The proponents confirmed that the problem proposed is significant
enough, the method plan is appropriate, and the results are likely to prove
successful and will make an innovative contribution not just in the industry but also
to the society and environment. In short, the proponents want to convince the
government that this research proposal is the finest way to diminish the number of
accidents in Barili and to make its municipality more renowned place in Cebu. And
to give a worldwide opportunity to represent the country because of utilizing an
alternative source of energy.
RESEARCH DESIGN
A research study comprises of the ideals and aspirations to create and
innovate new set of learning through coherent and comprehensive approach. To
embark a study, all the necessary components shall suit to one another in creating
a significant whole. In achieving such attempt, the components shall come up with
logical and well-organized thoughts in answering the complex research questions.
The research study refers to the overall strategy that the proponents do in ensuring
the skill of the strategy used in obtaining valuable and accurate information at the
end of the study.

Research Environment
Cebu is a well-renowned province not only in the Philippines but also
to the world. The different distinction received from various institutions proved the
province's competence in any competition whether nationally or internationally.
Barili has the total land area of 12,221 hectares. It is a second income-
class municipality in the province of Cebu. According to the 2015 census,
its population of 73,862. In the 2016 electoral roll, it had 42,831 registered voters.
Barili is 61 km (38 mi) southwest of Cebu City. It borders on Dumanjug to
the south; to the north with Aloguinsan; to the east with Carcar and Sibonga; and
to the west lies the Tañon Strait. Its main tourist attraction is the Mantayupan Falls.
Research and Methodology
A quantitative approach is applicable when situations are stable and
historical data exists. It also involves mathematical techniques and approach that
aims to develop tools and methods for numerical measurement and assessment.
The proponents use this approach to evade unfairness in measurement by using
identical measurement tools and defined data categories. The proponents will
approach government and other institution in obtaining an exact number or
standardized statistics.
Research Procedure
The proponents gathered information from the residents in the
specific site where accidents are proven being prone. The residents and
commuters were given a questionnaire being answered.

In doing this, the proponents firstly acknowledged the mayor and gathered
data on how many accidents occur at an exact time and how the lack of street
lights affects the overall occurrence.
Moreover, the proponents gathered accurate results to four series liners in
obtaining a standardized measurement on how many public buses owned by these
series liners traverse in Barili road. This will strengthen the foregoing study of the
team.
Limitation of the Study
Taking into consideration that the product is the pioneer in the Philippines,
this information could be too technical and limited. The real data that could aid in
further quantifying the benefits of the study that also includes the total population
of vehicles that traverse the identified site. Nonetheless, the estimates made were
reasonable and practical.
The information gathered from respondents maybe misleading during
analysis of data and answers were very dependent on their mood. The
respondents may abstain from answering on few questions as well. The profile of
respondents was randomly picked the researchers do tend to let the survey-
takers understand its benefits and costs; that whatever their responses will be
will have an impact on the study.

DEFINITION OF TERMS
For better comprehension and to avoid confusion on this feasibility study,
the following definitions of terms are provided:
Alternating Current (AC)
It is a type of electrical current, in which the direction of the flow of electrons
switches back and forth at regular intervals or cycles.
Capacitor
Stores energy in a form of electrical charge. It is like a small rechargeable
battery.
Charge Controller
Prevents the overcharging of the deep cycle battery by shutting it down
when it reaches its limit.
Connecting Wires
These are single, usually cylindrical, flexible strand or rod of metal that
provides a medium to an electrical current so that they can travel from one point
on a circuit to another. These are used to bear mechanical loads of electricity and
telecommunications signals.
Deep Cycle Battery
Serves as the storage for the electricity of the waste materials.
Diode
Allows electric current to pass in one direction.

Direct Current (DC)
It is electrical current which flows consistently in one direction. The current
that flows in a flashlight or another appliance running on batteries is direct current.
Duplex Wire
It sends an electrical signal to light up the street post or carries energy.
Ferric Chloride
Used in etching the Printed Circuit board to provide patterns where wires
and circuits are being soldered.
Metal Hacksaw
Used to cut steels and other forms of metals.
Multi-meter
Used in testing two or more electric values.
Piezoelectric Sensor
A Piezo is a device that measures changes in pressure, acceleration,
temperature, strain or force by converting them to an electrical charge. It is a
versatile tool for the measurement of various processes. It is used for quality
assurance, process control and for research and development in many industries.
Pliers
Used for gripping metals and twisting wires.
Printed Circuit Board
A printed circuit board is an electronic circuit consisting of thin strips of a
conducting material such as copper, which has been etched from a layer fixed to
T h e P r o b l e m A n d I t s S c o p e | 10
a flat insulating sheet called a printed circuit board, and to which integrated circuits
and other components are attached.
Solder
It is an alloy for joining two metal surfaces by melting the alloy so that it
forms a thin layer between the surfaces. Soft solders are alloys of lead and tin;
brazing solders are alloys of copper and zinc. It is used for connecting an
electrically conductive element to a metallic area to a substrate.
Soldering Iron
A device used to attach circuits and electronic devices.
Voltage
The pressure from an electrical circuit’s power source that pushes charged
electrons (current) through a conducting loop, enabling them to do work such as
illuminating a light.
Wire Strippers
Used to remove the protective coating of an electric wire.

T e c h n i c a l A s p e c t o f t h e S t u d y | 11
CHAPTER II
TECHNICAL ASPECT OF THE STUDY
Energy can be found everywhere which can be available in many forms
such as thermal energy, light or solar energy, wind energy and mechanical energy.
Capturing these energies and keeping them for later use is made possible by
Energy Harvesting. It is a natural source of energy which is an attractive alternative
in substituting costly yet easily interrupted power source. Also as far as energy
distributors and end users are concerned; it is possible to supplement the power
source from any electricity distribution interruptions. For centuries, people are
exploring new ways of converting and storing vibrations into electricity. Until they
had discovered the piezoelectric device which enables them to store vibrations and
convert it to electricity. The piezoelectric effect converts mechanical tension into
electric current or voltage. This tension can come from many different means such
as human disturbances, or vibrations caused by moving vehicles. The elements of
piezoelectric were a captured prospect due to its small size and its non-invasive
harvesting method. The vibration of a piezoelectric device to produce energy are
made to; reduce dependency on battery power, reduce installation cost, reduce
maintenance cost, to provide recognizing and actuation competences in hard-to-
access environments on a continuous basis, to give long-term resolutions and to
reduce environmental impact.

PRODUCT DESCRIPTION
The principle of piezoelectricity lies behind the crystals. Piezoelectricity,
also called the piezoelectric effect, is the appearance of an electrical potential (a
voltage, in other words) across the sides of a crystal when you subject it to
mechanical stress (by squeezing it). Electrical voltage is induced when crystalline
materials are subjected to external force, pressure, or strain. There are several
types of natural crystals, found at the surface or deep within the earth, which can
be used today to apply piezoelectricity effects such as clear quartz and amazonite.
A variety of artificial crystals are formed by chemical compounds, as well.
Piezoelectric crystals can be embedded underneath the flat bars to utilize
the energy generated due to the vehicle motion. As the vehicles move over the flat
bars, the wheels exert a force or pressure into the crystals and thus deform. This
deformation will absorb the force and undergo the process of power generation to
be stored in batteries. The use of storage is essential at this stage since street
lights are operated for 12 hours per day. Therefore, the energy can be dispersed
when required. Knowing the principle behind piezoelectricity and falling under
renewable energy category has drawn expected results. There are already a lot of
methods being used to utilize the waste energies. Yet, they are not enough to
completely depend upon to account for a higher consumption.
Presented in this chapter is the synthesis of research that supports the
evaluation of the research on congregating vibrations on streets; a natural source
of green electricity.
Related Literature
The related literature and studies presented in this section are based on the
essential topics catered in this study "Energy Harvesting Material". These studies
will support to determine whether the null hypothesis is accepted or should we
keep on the alternatives.
In the current time, there is a skyrocketing innovation in producing energy
because of the depletion of the fossil fuels that need to be developed. Moreover,
the innovation of producing energy lays a prominent purpose in protecting the
environment and its resources. One of the novel processes to achieve this is
through harvesting energy. Energy harvesting, or energy scavenging, is a
procedure that absorbs all waste energy such as heat, light, sounds, vibrations, or
movements that is converted to an electric. This is also to ameliorate the
advancement of the technology.
Piezoelectric materials and effects can be used to convert various vibrations
to electrical energy that is going to be accumulated in the future. This advancement
opens up opportunities for innovative energy-harvesting systems and processes
that are possible. Mechanical vibrations are an attractive source of energy because
of the existence of vehicles in the world which are known for pollution contributors.
Overview of Piezoelectricity
The word ‘piezo’ is derived from the Greek word for pressure. The
piezoelectric effect was discovered by Jacques and Pierre Curie in 1880. They
found that pressure applied to a quartz crystal creates an electric charge in the
crystal, a phenomenon they referred to as the (direct) piezoelectric effect. Later

they also verified that an electric field applied to the crystal leads to a deformation
of the material: the inverse piezoelectric effect. In the subsequent century,
research has been performed into the development of materials with improved
piezoelectric properties, enabling commercial utilization of the piezoelectric
phenomenon.
PRODUCTION PROCESS
Installation Process
 The flat bar is attached to the top of the steel plate (by welding) which will
serve as a hump where vehicles will pass through.
 Four piezoelectric devices will be placed at the corner of the steel plate, in
each corner we placed and attached 2 piezoelectric devices (bottom part).
 Each piezoelectric device is connected in series and is wired to the battery.
 The multimeter will then be connected in parallel to the battery to determine
how much vibrations are converted to electrical energy.
Working Process
 The scholarly designed energy harvesting will be installed at the chosen
area Barili, Cebu. When the flat bar that serves as the humps hit by any
vehicle, vibration occurs.
 With the steel plate where flat bars are placed and the piezoelectric device
will be attached, produced a mechanical strain or stress due to vibration will
be converted into electrical energy, the more vehicle will pass, numerous
vibrations will take place thus, more energy harvested.

 The converted electrical energy will be carried by a wire and sent to light up
street posts or could be stored with the use of the deep-cycle battery.
Figure 1
 With the use of a multi-meter, converting electrical energy will be measured
and recorded.
A. Prototyping
Figure 2
From the procured materials, components and equipment, the proponents will
start constructing the intended design. It is the software development of the design
to produce a model of an energy harvesting device with its main component,
piezoelectric material. The prototype will be used to test the process in harvesting
the energy wasted by the passing vehicles and convert it into electricity that will
power up a lighting post and to store energy for charging purposes.
B. Installation of the Designed Prototype on Streets
Proponents will install the prototype preferably in Barili, Cebu since it is one
of the dimmest municipality in Cebu and it is also known for an extensive number
of accidents.
Proposed Product Site Distribution and Installation
The proposed product site for distribution and installation will be the whole
municipality of Barili, Cebu. In which the devices will be distributed among the
barangays of the municipality and it will be the discretion of the mayor or barangay
officials where the device will be placed with the streetlights
RAW MATERIALS ACQUISITION AND DESCRIPTION
To produce the product, it needs an adequate supply of raw materials. The
proponents have searched suppliers that would provide the proper materials with
affordable cost without risking quality. The following are the specific raw materials
to be used in the production of the Piezoelectricity.
Capacitor Figure 3
This allows to store energy in the form of an electrical
charge producing a potential difference across its plates,
much like a small rechargeable battery.

Connecting Wires Figure 4
It allows an electrical current to travel from one point
on a circuit to another, because electricity needs a medium
through which to move.
Deep Cycle Battery Figure 5
These are energy storage units in which a chemical
reaction occurs that develops voltage that results into
electricity. These batteries are designed to be cycled
(discharged and recharged) many times.
Diode Figure 6
It is an electronic device that allows an electric
current to pass in one direction (called the diode's forward
direction), while blocking it in the opposite direction (the
reverse direction).
Ferric Chloride Figure 7
This is used in etching the Printed Circuit Board
(PCB) to be able to create patterns where the wires are
being soldered.
Flat Bars Figure 8
This serves as the hump that vehicles will pass
through.
No. 14 Duplex Wire Figure 9
It sends electrical signal to light up street post or carry
the energy.
Piezoelectric Sensor Figure 10
Piezoelectrics are materials that can create electricity
when subjected to a mechanical stress. They will also work
in reverse, generating a strain by the application of an
electric field.
Printed Circuit Board (4x4) Figure 11
This is used to design the electronic circuits. Apart
from electrically connecting, it also gives mechanical
support to the electrical components. PCBs are the core
component in almost all the electronic gadgets

Security light Figure 12
Provide light to the dark areas of the streets.
Spring Figure 13
Cause or produces more vibration to piezoelectric
devices.
Steel Pipe Figure 14
This is used for the lamppost and serves as the
support of the light bulb and lamp globe.
Steel Plate Figure 15
This is where the steel plate is attached. Since the flat
bar is used as a hump this will help to make more vibration.

PRODUCTION TOOLS AND EQUIPMENT
Charge Controller Figure 16
This helps in shutting down the battery to prevent it
from overcharging.
Metal Hacksaw Figure 17
The hacksaw is used to cut steel and other metals
like flat bars. It can also be used to cut plastics, although it
is not normally used to cut woods. It is sometimes called an
adjustable hacksaw because the length of the frame can be
altered to hold blades of different sizes.
Multimeter Figure 18
This is a test tool used to measure two or more
electrical values. It is a standard diagnostic tool for
technicians in the electrical / electronic industries.

Pliers Figure 19
Some are used for gripping something round like a
pipe or rod, some are used for twisting wires, and others are
designed to be used for a combination of tasks including
cutting wire.
Soldering Iron Figure 20
This enables us to connect our electronic devices,
such as printed circuit board and Liquid Crystal Display.
Soldering Lead Figure 21
This is melted to connect the circuits from different
metal boards. This is melted through the soldering iron.
Wire Strippers Figure 22
This is a portable handheld tool used by workers,
especially electricians, for removing the protective coating
of an electric wire in order to replace or repair the wire.

PRODUCTION SCHEDULE AND CAPACITY
Production Schedule
A timetable is necessary to attain a well-planned production system. It
involves management control over the allocation and maximization of work to
create goods. A coherent schedule will give an overview as to when the work
should start and finish.
The usual production hours will be from 8:00 am to 5:00 pm. There will be
six working days in a week from Monday to Saturday. Given one (1) hour lunch
break from 12:00 noon to 1:00 pm allotted time for the workers. There will be two
major phases involved in the process – formation of the body and the assembling
or finishing of the product.
Table 1. Production Phase 1
Minutes for
Process Workers Operation
(1 Unit)
Soldering of Circuit 25
Attaching the Piezo Material on the Steel Plate 45
Soldering the Circuit for Piezo Material 60
Connecting the Necessary Components of the
4
Device 75
Attaching the Protective Material to the Device 35
Finishing the Product 50
Total Duration for Phase 1 300
Production Allowance: 50 minutes
Total Assembly Time: ( 300 + 50 ) 350

Table 2. Production Phase 2
Minutes for
Process Workers Operation Curing
(1 Unit) Period
Attaching Aluminum Bar 25
4 700
Covering One Side of the Tube 45
Total Duration for Phase 1 2 60 780
Total Duration for Production of the Device 10
The table one and two shows the time interval of the production of one
device. The proponents assume that in every four workers, there will be one device
to produce. The two tables signify the breakdown of work of every worker in one
day.
Production Capacity
To achieve the goal of the business, one must know the company’s ability
to manufacture the product and it must have sufficient knowledge about its
demand. Production capacity helps to determine the quantity of goods that can
make in a given time frame. Also, it refers to the volume of product or services that
can be done using available resources.
Projected Production Capacity
This device can be done by four (4) workers within eight (8) hours in a day.
However, this conclusion needs a complex evaluation because aligning and
connecting the circuits takes time due to its durability, complexity and sensitivity.
This is purely hypothetical and needs further evaluation when the
proponents will revise this paper.

CIRCUIT DESCRIPTION
Piezoelectric will generate an alternating current (AC). To use the voltage,
it must be converted. An alternating current (AC) to direct current (DC)
converter will be used to successfully convert the voltage to a digital signal.
A diode will help the electric current to transmit in one direction. It can
handle an extensive current flow, and also used to transform AC to DC. There will
be a bridge rectifier, it as an arrangement of a diode in a bridge circuit
configuration which helps in providing same outputs and inputs of polarity.
This is stored in a capacitor that will get charged and closes it to discharge
it from the device when enough energy is being stored.
Figure 23. Circuit Layout
Production Location
Location is one of the important factors of a feasibility study. Choosing a
location is critical because it includes a complex and deep hypothetical
observation. This feasibility study is looking for the best place to make the study
feasible in some aspects. The best location for this study must be realistic
regarding its possibility and usefulness when produced.

The primary use of this aspect is to locate the area being chosen by the
proponents based on hypothetical observation where the beneficiaries of this study
can notice the effectiveness of the product. After all the considerations for the
production location, the proponents recommended the Municipality of Barili to be
the area of the study.
Proposed Production Site
The researchers decided that there will be an approach that will be applied
in choosing the best production site for the business. This approach used by the
researchers is the Factor Rating Method, wherein there will be various factors
whether qualitative or quantitative that are being weighted and rated by each of
the alternatives.
There will be two (2) alternative locations which the proponents consider
that would benefit the business venture. These are the warehouses with an office
in North Reclamation Area, Mandaue City, and Banilad, Cebu City.
Table 3. Factor Rating
(%) MANDAUE CITY CEBU CITY

LEASE PRICE 30 17 13
WAGES 25 12.5 12.5
INDUSTRIAL WISE 10 8 2
NEARNESS TO 20 13 7
SUPPLIERS
FLOOR AREA 5 3 2
RENTAL TERM 10 4 6
TOTAL 100 57.5 42.5
Since, the preferable location for the production site as per the result of the
above table, the alternative is chosen is the warehouse with an office in North
Reclamation Area, Mandaue City.
Figure 24. Production Floor Plan
Waste Disposal Management
The wastes of the proposed project are the small cuts or excess cuts of the
steel plates, flat bars, and even the duplex wirings. To dispose of them properly
since none of the scraps can be deteriorating it will consider as non-biodegradable.
Non-biodegradable needs a proper disposal because some of the materials
are dangerous to our health or can even cause an accident, but unlike
biodegradable waste, they can be disposed of through composting.

All of the metal scraps and small cuts of wirings if possible will be recycled
or donate it to organizations who have programs in recycling scrap metals or sold
to junk shop.
M a r k e t i n g A s p e c t | 28
CHAPTER III
MARKETING ASPECT
Most business succeeds because of effective marketing. This will help the
business attain its mission and goals to have a competitive advantage with regards
to other business with the same kind. Through marketing, the generation of sales
will be a lot better since the product is new to the public.
This aspect would also help address the needs and wants of the market
more effectively and specifically, because of the responses gathered during the
market surveys. Marketing would also determine what will be the appropriate price
for the product being offered and affect the ideal promotion to be offered to the
clients. The marketing function contributes to the business’ performance. In this
part, the proponents develop a context that describes the scope of the marketing
aspect. Therefore, the proponents expect that, as the marketing aspect progresses
familiarity and skills related to this, the observed value of the role within the
organization will increase.
Marketing Strategy
Marketing strategy is one of the most critical parts of every business. It is
the part where necessary plans of action must be taken to get the attention of
potential target market and to attract them into patronizing the product and the
business.
An entity must have an effective marketing strategy to create traffic to the
business. Aside from the need of having a potential target market, marketing
strategy also helps the profitability of the business because the more you have
customers, the more you gain profit.
Product Offers
One of our marketing strategies is product offers with authorized
representatives of the prospect clients where matters about the new product and
service being offered are discussed.
The product offers will make the proponents establish a good business
relationship with the clients and for the latter to be guaranteed of the purpose and
usefulness of the product. In this instance, clients will have the time to deliberate
and decide respectively and appropriately towards the business.
In the meeting, these things will be tackled to gain interest from the client:
1.Cost and Benefit. Benefits include the significant amount of money that
the LGU can save in the pursuance of the project over the cost of using commercial
energy which is expensive.
Other than the cost saving, the benefits of acquiring the device are that it
will provide safe and secure travel experience to everyone, the area will be known
for its difference among other places, and this will lead to a better review for the
tourists and even investors.

Cost-Benefit Analysis Figures
Figure 25
In the figure, the normal streetlights will cost high since the consumption of
the energy is high as per the number of the streetlights. The figure will show the
cost of the normal streetlights using commercial energy for the year. The only
benefit of the normal streetlights is that it will provide safe and secure travel
experience to the local residents and tourists, something that the proposed product
can equally provide.
On the other hand, the cost of acquisition of the device is high but it will still
be divided over five (5) years, the life span of the device. Thus, the LGU could
save as much as ₱2,092,273.48 (₱3,758,430.28 less ₱1,666,156.80).
2. Purpose of the project. The proponents will highlight the purpose of the
project which is the social community and environmental impact. It will create an
impact on the social community because the device will power streetlights that will
lessen the accidents in the area or the safety threats. Proponents would like to
make a safe and secure travel experience for the local residents and tourists.
On the other hand, the environmental impact will take place when there will be
already a safe and secure travel experience for everyone. In this case, there will
be a possibility of an increase in the number of tourists and visitors in the place,
also additional investors. For this reason, the income of the local traders and
vendors, and the municipality will increase. This would help the lives of the local
residents of the place.
3. Surveys. The survey will take place before the meeting with the LGU. It is
to show the LGU that the device has an impact on the society. To show how much
relevant the product will be since it is new to the environment and the people. This
is also to provide data and figures on how the people will react to the device and
LGU, itself.
4. Prototype Presentation. This would provide the client a physical picture of
what the product looks like and how would the product work. It will prove that the
study or the device really works.
5. Payment Terms. The payment terms will be included in the product offering
to make sure that the client will not get a hard time on the payment procedure.
Basically, the client will have to pay the down-payment of 50% of the total price
and the rest will be paid in an installment basis wherein it is good for semi-annually
in two (2) years. Since the client will be the LGU, it is expected that the receivable
turnover will be in a little bit longer.

6. Repairs and Maintenance Offer. This is to give a convenience to the client
when it comes to the trouble of the device to be fixed as early as the business
venture can. If there are any troubles in any devices, the response adherence of
the venture will take up to 2 days from the day of the report on the trouble the
device had. There will be a 1-year free maintenance to be offered to the client upon
purchasing of the device.
Logo
The logo is the representation of the product or the business itself. It will
showcase the interest, purpose, and goal of the business venture because a logo
is a symbol that gives meaning to the perspective of the entity. A single image
which represents the wholeness of the business, it will be part of the marketing
strategy because it will also get the attention and drive the interests of the potential
target market. Making a mark into their minds even in their imagination that the
product really works, and later on be proven when the product is made that will
make a history.
Figure 26
This will be the official logo of the business venture. The logo shows the
purpose and the process of the output of the product device. As shown, there is a
voltage spring at the center which symbolizes the material which collects pressure,
and the circuits and light-effect above the voltage spring show the conversion of
the pressure into an electricity. It also shows the vital parts and purpose of the
product and the business venture itself.
Tagline
For a starting business, a tagline is optional, but it plays a great role in the
marketing strategy. An effective tagline must catch the attention and interest of
such market or even individuals. This would make a mark, of the product or
business, in the mind of the consumers that would help them remember the
product or the business itself.
“Get Pressured! Get Electrified!”
This will be the official tagline of the business and the product. Behind the
phrase is the story of how the product works. Since, the product will convert waste
energy, such as pressure, into electricity. And also sees to maximize the use of
the waste energy and minimize the use of the common electricity which will be an
expensive one.
Advertising
In this part, advertising will take an essential part of the marketing strategy
because, in this technique, it will make a great impact especially to the consumers,
or the end users. Effective advertising must showcase the relativity of the product
to the users.
The study proposes that the type of advertising is through social networking
sites such as facebook and twitter. The proponents consider these social
networking sites as major social networking sites since there are a lot of active
user accounts which include pages of LGUs or even big institutions. In other case,
employees may have their personal accounts that may check either notice or
scrolling of the page of the business venture and drag their attention and interests,
which they can be possibly the one who can advertise it to their big bosses in their
company, or agency or others.
The study also considers having brochures which will be given to the prospect
markets for them to keep and disseminate. The brochure will also be given to the
clients which the business venture will have a product offering with. Brochures will
be distributed for every meeting conducted and will also be given to every
prospective client that we want to work with. This is to ensure that knowledge of
the product will be formally and engagingly given to the market.
Customer’s Testimonies
The proponents considered that the customer’s testimonies will be part of the
marketing strategy. This is what so-called "Word of Mouth" which is more effective
than other marketing strategies because this will really put an objective on the
client that the product itself is reliable and undeniable.

This will start to create a goodwill for the business venture. This will serve as
the proof that the product and services are good enough that it will be possible and
successful. This will also play a great role for the product offering because it will
not give a hard time to convince the client in such reason that client has already
build-up knowledge on the product and how it works- effectivity and efficiency.
TARGET MARKET
Identifying a target market helps develop effective marketing
communication strategies. In this part of the study, this focuses on campaigning
and advertising the product and services of the business. It includes a targeted set
of customers for whom it directs its marketing efforts.
The main target market for the proposed business is the Local Government
Unit (LGU) especially the LGU of Barili. The proponents believe that this unit of the
society has the power to consider, and purchase the product because of its power
that they have in the community.
The proponents come up with this research because they wanted to give a
contribution to promoting safety and secured travel experience to everyone. The
proponents decided to make an action on this matter and proposed a study about
Piezoelectricity. Through its technological way, it became more efficient and
beneficial than the normal (street lights) because it is powered by a renewable
energy coming from any types of vehicle.

DEMAND
Demand is an economic principle that describes the desire of consumers to
buy a given amount of product and the volume to purchase it at a specified price.
Its constrained by the willingness and ability of the consumer to pay for the good
or service. Perceiving the analysis of demand is a substantial factor for it can affect
the success of the business. The demand for the product will be influenced by
several factors such as price, income levels, consumer tastes and preferences,
and competition. The organization must satisfy the demand of its consumers in
order to succeed in the business.
Moreover, having cognition about the quantity demanded by the market will
greatly help the proponents in establishing production needs of the company to
distinguish the decision made for the product by the chosen target market. The
following table shows the consumer’s response and its corresponding percentage
that are gathered from the proponent’s survey.
Figure 27
Schedule for the Determination of Annual Demand of Piezoelectricity
Area of Municipality of Barili 11054.8632m
Divide: Meters needed for every Device 68.58m
Total Device needed for the Municipality 161 units

PROJECTED DEMAND
The schedule above shows the prediction of probable demand on the
Piezoelectric device and the factors that would affect the profit margin of the
business. The information gathered is used in the consistency of the area of the
municipality. As a business that is expanding to other municipalities, the
proponents used the area covered by the municipality to determine their need for
the device that powers streetlights. So, the demand of every municipality will
depend on the area of the municipality, this is the reason for showing a big
difference of demand in units.
Table 4. Projected Annual Demand
Municipality 2019 2020 2021 2022 2023

Barili 161
Ronda 110
Ginatilan 122
Alegria 138
Malabuyoc 121
Moalboal 163
Samboan 98
Dumanjug 153
Badian 135
Total 161 232 259 261 288
As shown in table 3, the 2019 average annual demand for piezoelectricity
serves as the starting demand of the device specified in the Municipality of Barili.
The basis of annual demand is the need of device in the municipality. Calculating
the device needed for every area of the municipality. Since the business in nature
is expanding to other LGUs, there will be a big variation of demand.

SUPPLY
Supply describes the quantity of good and service that is available to the
customers. It also describes as the goods and services that the sellers would sell
at a specific price or the amount available through a variety of price.
The proponents conducted an estimation of the approximate coverage on
how many products will the business is going to be produced in a period of time
for its prospect clients such as LGU in the South Province of Cebu.
Piezoelectricity Energy Harvesting is an alternative source of electricity for
the municipality of Barili, as what was stated in the previous chapters. We would
like to produce an alternative way to lessen the burden of the government in paying
the consumption of commercialized electricity or the use of other expensive
alternatives. Also to provide safe and secure travel experience for everybody which
is one of the focuses of this study.
Table 5. Projected Annual Supply
Annual Average Demand Projected

Year for the Piezoelectric Annual Supply
device (per unit) (per unit)
2019 161 161
2020 232 232
2021 259 259
2022 261 261
2023 288 288

Table 4 indicates the capacity of the business to produce the product. It is
important in determining the supply that the company needs to generate. The
supply is determined to be equal to the demand because the business has no
market share.
Projected Market share
The market share will show the company or industry’s total sales in the
market that is earned over a specific period of time. It can be computed by
determining the sales in a particular period dividing it by the Market’s total sales in
the same period. It is said to be a key indicator of market competitiveness. This is
used to give a common idea of the size of a company in regards to its competitors
and market.
Table 6. Projected Market Share
Projected Projected Market Share

Annual Projected
Demand Annual Supply Production
Percentage
Year (Table 3.7) (Table 3.8) Capacity
2019 161 161 240 0%
2020 232 232 240 0%
2021 259 259 240 0%
2022 261 261 240 0%
2023 288 288 240 0%

This is vital for owners who look at market share carefully because they can
be a sign of the relative competitiveness of the company’s products or services.
The table below shows the projected market share of the Piezoelectric Device.
Pricing Policy
One of the important aspects of marketing is pricing. Setting the right price
is a sign of the success of the business. The price of the product has a direct effect
on the company's revenue and profit. It would determine whether or not people
accept the product; thus, it ascertains the future of the product.
There are factors to consider affecting the price of the product, such as the
competitor’s price, the selling and other administrative costs, the production cost,
the capability of the target customers to pay, the supply and demand situations
and prices should be supplementary with quality.
The Cost Pricing is an approach that is focused on the costs of the goods
and services in setting the prices. Under this approach, you add the direct labor
cost, direct material cost and overhead costs for the product. Then add to it a
markup percentage to create a profit margin in order to derive the price of the
product. It can also be used within a customer contract, where the customer
reimburses the seller for all costs incurred and also pays a negotiated profit in
addition to the costs incurred.
Moreover, this approach is not applicable in a competitive market and
may result in overpricing the product. However, the proposed product by the
proponents is monopolistic in nature in which there is an absence of
competition. As far as the proponents are concerned, the Piezoelectricity is

unique and not for sale in an ordinary market, thus, making the government the
sole entity that can access the availability of the product.
Table 7. Raw Materials Used
Price
Raw materials Quantity per unit Total
Piezoelectric Sensor 15 55.00 ₱825.00
Duplex Wire 1/180m 24.70/meter 4,446.00
Connecting Wires 1/5m 10.00/meter 50.00
Deep Cycle Battery 1 3,278.00 3,278.00
Printed Circuit Board 1 16.00 16.00
Light Bulb (LED), Security 3 525.00 1,575.00
Light
Spring 40 40.00 1,600.00
Steel Pipe 3 1,400.00 4,200.00
Flat Bars 10 60.00 600.00
Ferric Chloride 1 25.00 25.00
Diode 1 8.00 8.00
Steel Plate 2 2,075.00 4,150.00
Capacitor 2 30.00 60.00
Raw Materials Used per unit 81 20,833.00
Capacity for a year 240
Total Raw Materials Used ₱4,999,920.00
Table 8. Total Labor Cost
Labor Amount
Production Workers Salary (366 minimum wage*5 days) ₱29,280.00
13th month 14,640.00
Total Direct Labor Cost per month 43, 920.00
# of months 12
Total Direct Labor Cost per year ₱527,040.00
Table 9. Factory Overhead
Factory Overhead Amount

Rent Expense Building
(45,000.00*12) ₱540,000.00
Depreciation Expense:
Furniture & Fixtures-Office 4,662.20
Furniture & Fixtures-Production 4,707.89
Production Equipment 11,423.20
Delivery Van 48,000.00
Office Equipment 13,517.80
Leasehold Improvements 11,701.80
Fuel Expense 9,000.00
Indirect Materials 1,465.00
Installation Expense
(35,000.00*12) 420,000.00
Indirect Labor:
Salary*12
(Security Guard) 351,360.00
(Project Engineer) 336,000.00
(Electrical Foreman) 144,000.00
(Accounting Staff) 288,000.00
(Utility Worker) 175,680.00
Advertising Expense 62,818.59
Repair and Maintenance 13,000.00
Utilities Expense:
Water (2,000*12) 24,000.00
Electricity (10,000*12) 120,000.00
Communication Expense (1,099*12) 13,188.00
Cleaning Supplies 10,271.50
Office Supplies 8,145.25
Total Factory Overhead Php2,610,841.23
Table 10. Total Manufacturing Cost
Raw Materials Used ₱5,789,928.00

Direct Labor Cost 527,040.00
Factory Overhead 2,610,841.23
Total Manufacturing Cost ₱8,927,809.23
Table 11. Selling Price
Total Manufacturing cost ₱8,927,809.23

Divided by: Production Capacity per year 240
Total 37,199.21
Multiplied by mark up rate 30%
Total ₱48,358.97
Government 7% 3,385.13
Selling Price ₱51,744.10
M a n a g e m e n t A s p e c t | 44
CHAPTER IV
MANAGEMENT ASPECT
Management is the process of coordinating work activities to unify the
business in achieving its goals with and through other people. It deals with
documents that stress how goals are to be met including resource divisions,
timelines, and other essential engagements used to transform inputs into outputs.
This is a critical aspect because it includes the attainment of the business objective.
It also deals with monitoring actual performance and making sure that things are
going on as planned. Management function includes planning, organizing, leading,
and controlling.
The management implies proper segregation of duties in the organization.
It gives motivation to its subordinates and influence individuals or team as they
work together. Management selects the most effective communication channel in
accomplishing its organizational goals. In achieving the goals and objectives,
management gives directions to its worker on planning its work activities.
Management must be able to set the standards and reduce the impact of change.
Management is more dynamic and responsive to the business environment. Hence,
proper management is necessary for it plays a significant role in making decisions
and affects the future of the business.
This chapter will focus more on the management of the pre-operating and
operating period of the proponent’s research.

MANAGEMENT DURING THE PRE-OPERATING PERIOD
Before the concrete operation, it is important to fulfill the pre-operating
requirements for compliance. Preparation is the vital key to achieving the
objectives in a certain company. It includes vigilant scheduling from the smallest
aspect up to the major requirements.
Project Timetable
The timetable is being created to determine which activity should be
prioritized over another. This is done to avoid waste of time, money, and resources.
Strict compliance in the time allotted for the accomplishment of certain activity must
be strongly practiced. Any extension of the targeted date would mean generation
of extra expenses. Therefore, as much as possible delayed works are being
avoided.
Gantt chart includes the anticipated time needed to complete the task. This
chart will help to carry out successfully the pre-operating activities. Here, the
activity is being specified with its corresponding time of completion. This will tell
whether the company is on the right track of accomplishing the target.
.
Table 12. Gantt chart
Pre-Operating JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC
Activities
General Project
Planning
Sourcing of Funds
Preparing of
Production Site
Registration &
Licensing
Negotiation for
Raw Materials
Canvassing &
Purchasing of
Machinery, Tools,
& Equipment
Purchasing of Raw
Materials
Recruitment of
Employees
Start of Normal
Operations
General Project Planning
The General Project Planning is the first step the proponents must do. In
this time, the proponents are carefully conceptualized about the complexity of the
situation and in identifying the whole process of the study. In this phase of
preparation, researchers gather relevant information and ideas necessary to
determine the acceptability and profitability of the proposed business in the market.
This project can be achieved within one year.
Sourcing of Funds
A fund is the blood of the business. Without enough funds supporting the
operations of the business, it will lead the operation into failure that will also lead
the business to fail. Proper sourcing of funds must be attained to acquire the capital
needed. The business, as a partnership form of business, will raise its capital from
each partners’ personal savings and a personal bank loan. One month (1) would
be sufficient for this phase.
Preparing for Production Site
The entity cannot function without their principal place of business. The
office and the proposed production site are located differently. The proponents
suggest that the implementer should rent a warehouse at North Reclamation Area,
Mandaue City. On the other hand, the cost of remodeling or changing, upgrading,
and maintenance of the product will be considered.
Registration and Licensing
Business must be in accordance with the applicable laws and regulations
required to legalize its existence and operations. It also needs to be registered to
secure protection and in order for it to be acknowledged in the business industry.
Canvassing and Negotiation of Raw Materials, Tools, and Equipment
To avoid trouble in the supply of the raw materials, tools, and equipment,
negotiation with the suppliers is a must. Finding the right supplier is needed for
efficiency and effectiveness of the production process. The official supplier for raw
materials will be Jorax TechShop, Motolite, Advance Electronic Shop, Washington
Electronic and Industrial Supplies, Multimetal, OJ Pica Hardware and Cebu Audio
Video Electroparts which are officially operating in Cebu. Tools and equipment will
be obtained from the same suppliers. The acquisition of the needed tools and
equipment will take four (4) months to complete.

Recruitment, Hiring, and Orientation of Workers
In achieving the goals and purposes of the proposed business, it is a need
for the workforce to be properly selected. Therefore, recruiting, hiring and
orientation of employees must be given a great importance. The hiring of
employees will be based on the standard qualifications stated in the organization
and management study. All employees will undergo an orientation, seminars, and
training for them to acquaint the work during the actual operation. It will take two
months.
Purchasing of Raw Materials
The acquisition of the raw materials will only take one month to accomplish.
The proponents allocate a short span of time in purchasing materials for it has
already been undertaken during the two (2) months of negotiation with the
suppliers of the raw materials.
Normal Operation
After the completion of all the necessary requirements and activities in a pre-
operating period, the business is now ready to start its operation.
MANAGEMENT DURING THE OPERATION PERIOD
It includes the application of managerial functions which compose of
planning, staffing, directing, organizing and controlling in the regular operation of
the business. This function is necessary to achieve the optimum objective and
economic results.
The Form of Business Organization
As an entity, the proponents chose the form of business as a partnership in
which there are five (5) owners, among them is one (1) managing partner. In this
business, it is run by a juridical person in which there is a legal separation of the
person who owns the business and the business itself. The managing partner has
a direct control of all accountabilities of the business which may include debts,
loans, loss, and others, as long as there is consent of each partner. Each partner
receives an equal share of profits subject to taxation and has unrestricted
responsibility for all the losses and debts.
Organizational Structure
An organizational structure will provide the human resource structure for duly-
processed transactions or valuations of all activities relating to the organization's
goal. In order to maintain a sustainable competitive advantage, the company must
be able to adapt changes and innovations. It can be made in some various ways
to successfully achieved its vision.

Figure 28. Organizational Chart
Business Partners
Managing Partner
Security Guard Delivery Man
Utility Worker Accounting Staff
(Cash Disbursement Journal)
Project Engineer Accounting Staff
(Cash Receipts Journal)
Electrical Foreman
Production Workers
Job Titles and Description
The job description will provide the employees and workers their titles into
their positions, their duties, and their functions. This would help them to have a
better understanding unto their responsibilities and to apply the necessary skills
needed to perform their tasks. Their title and position must not only conform to
what is written thereof but also their initiative for decision making in the absence
of the management.
Below are the lists of the job titles and positions need for the entity to run:
1. Business Partners
a. The persons who are in control of the finance and risky decisions
in the business.
b. The persons who have the power to continue and extinguish the
partnerships.
2. Managing Partner
a. The person who has a limited power in making a decision for the
business.
b. The person who must have the permission of other business
partners before making financial decisions.
c. Maintains the structure and enhance the performance of every
employee.
d. Responsible for the organization of the works of the office
employees.
3. Accounting Staff
a. A person who take accounts of the accounting information of the
business.
b. In-charge for every documented transaction of the business
which affects the accounting of the business.
c. She/he must also control the treasury activities needed for the
business and must seek approval from the owner.
4. Project Engineer
a. This person is responsible for the management on the field.

b. Must maintain also the safety of the workers in the field.
c. Must monitor all the production process in the field.
d. Responsible for product research and development, innovation.
e. Responsible for checking the materials, machines, and
equipment.
5. Production Workers (includes Electrical Foreman)
a. Responsible for setting up machines and equipment for the
production process.
b. Responsible for storing the materials, machines, and equipment.
5. Security Guard
a. Responsible for securing the assets in the vicinity of the area.
b. Responsible for the safety of every individual in the area and
the peacefulness of the working environment.
c. Responsible for the security control in the vicinity.
6. Utility Worker
a. Responsible for the cleanliness and sanitation in the vicinity.
7. Delivery Man
a. Responsible for the transportation of the devices to the specific
destinations.
b. Responsible for the safety and security of the devices in transit.
Job Specifications
In this business, a specification for the jobs is very important since this is a
huge and critical kind of business when it comes to production or transactions

process. This will be the standards that will be observed when hiring such
employees needed in the business. It will help the business not waste time, money
and effort for looking an appropriate person that will be working in the business.
1. Accounting Staff
a. Must be a graduate of Management Accounting or Accountancy
or Accounting Technology
b. Must have an experience of at least 1 year.
c. With good communication skills and computer literate.
d. Must be technology savvy.
e. Connections and linkages is a plus.
f. Able to handle employees with good moral character.
2. Project Engineer
a. Must be a graduate of any engineering course except Industrial
or Civil Engineering
b. Must not be more than 40 years old.
c. Must be technology savvy
d. Must have a good communication skill among production workers.
e. Must also be computer literate.
f. Must have an experience of at least 1 year.
3. Production Worker (includes Electrical Foreman)
a. Male.
b. At least high school level.
c. At least 18-35 years old and fit to work.

d. Knows how to operate machines or willing to learn.
e. With good moral character and has a good communication skill
towards co-workers and up-level management.
f. Can understand and follow simple instructions.
4. Delivery Man
a. Must have a professional driver’s license, if not he will be
upgrading into professional.
b. At least 25 years old.
c. With good moral character and has a good communication skill
towards co-workers and up-level management.
d. Can understand and follow simple instructions.
e. At least high school graduate.
Delineation of Functions
It is important to observe segregation of duties, for internal control purposes.
This will lead to a better operational process and procedures. As mentioned, it is
for an internal control purpose, to safeguard assets and to make procedures,
process, methods and approaches which are taken into account to refrain the
business from any interruption, and delays.
The following are the major segregation of duties that will be observed in
the business:
Managing Partner
The managing partner will be the one to sign or personnel who approves
the disbursement of cash for any transactions. However, if there is a big

transaction that would have an impact on the business, the managing partner must
have any decision to make with the consent of the existing partners.
Accounting Staffs
There will be two (2) accounting staffs, in which one of them will hold the
Cash Disbursement Journal and the other one will hold the Cash Receipts Journal.
Any cash disbursement must be duly approved and authorized by the managing
partner. For cash receipts, the accounting staff assigned to it must issue a Sales
Invoice for every sales transaction, for any credit sale transaction the staff must
give consent to the managing partner for the approval.
Project Engineer
The project engineer is assigned to be the Quality Control Officer for every
product being produced. He will be responsible for the defective and spoiled units
of inventory. Every unit being produced must have a number for it to be traced
including the defective and spoiled units.
Electrical Foreman
The foreman is assigned to supervise the production workers in the
production process. He will be the timekeeper, and the observer to improve the
production of the business. He will be assisting the Project Engineer in preparing
the numbers of the devices and inventory count.
Production Workers
The workers will be in focusing on the production process of the devices
and no other functions to do. Responsible for every tool and raw material in the
production.
Table 13. Working Schedule
Worker Mon Tue Wed Thu Fri Sat Sun
Managing Partner
Accounting Staff
Project Engineer
Security Guard
Production Workers
Utility Workers
Recruitment Program
The recruitment program is essential when it comes on finding or hiring the
best person in the position to work on the entity. This proposed project is highly
needed for an advertisement specially for the managerial position because of its
complication and critical kind of business, because it is really hard to find an
employee for a managerial position which needs a high and great work
experiences. For the production workers, it will not be that hard to find because
there are a lot of skilled which are willing to undergo training.
The candidates of the positions will undergo an initial interview after they
will be going to give their resume or curriculum vitae. For the managerial position
and accounting position, once they will pass on the review of their curriculum vitae
they are going to be scheduled for an interview with the managing partner. Also
with the security guard and utility workers. On the other hand, for the production
workers, after the initial interview with the Project Engineer that has been hired,
they will also have a final interview but with the owner only.
The following forms and requirements will be submitted after the final
interview:
1. NBI Clearance
2. Barangay Clearance
3. Police Clearance for the Managerial Position and Accounting
4. Transcript of Records for the Managerial Position and Accounting
5. Driver’s License for the drivers
6. PhilHealth Number
7. BIR-TIN (not intended for production workers)
8. SSS E-1 Form or Photocopy of SSS ID
9. Medical Certificate
Compensation
The employees in our organization hold a vital role in achieving the goals
and objectives of the organization. They will be well compensated to retain talented
employees.
Table 14. Compensation Schedule
Position Every 15th and 30th day of the month
Project Engineer ₱14,000.00
Accounting Staff 6,000.00
Utility Worker 3,660.00
Production Worker 3,660.00

Security Guard 3,660.00
Delivery Man 3,660.00
Electrical Foreman 6,000.00
Employee Benefits
Under the Labor Code and Philippine Special Laws, the Philippine
legislation listed some benefits. Proprietors, therefore are obliged to give to their
employees.
Social Security Systems (SSS) Contributions
Contributions that an employer must contribute for his or her employees
under Employees' Compensation (EC) program which aims to assist workers who
suffer work-connected sickness or injury resulting in disability or death. It may be
enjoyed simultaneously with benefits under the social security program effective
June 1984.
Contribution to PhilHealth
It is a premier health insurance which endeavors to influence the delivery of
accessible quality health-care for all Filipinos. It provides subsidies relating to all
health care accommodations, services, and health care products. Its function is to
provide health insurance for all Filipino workers.
Contribution to Home Development and Mutual Fund (HDMF)
HDMF provides housing loans, short-term loans and provident savings
program at lower interest rates.

The 13th Month Pay
It is a requirement for the company to pay their employees a 13th-month
pay as required by the government and by the law. It is the 1/12 of the total basic
salary earned by an employee within a year.
Service Incentive Leave
Employees who have worked at least one year of service is given a privilege
for yearly service incentive leave of five days with pay.
Meal and Rest Periods
The company must give their employees not less than sixty (60) minutes of
break or time- off for their regular meals. The normal hours of work of any
employee shall not exceed eight hours a day.
Management Policies
Essential to the growth and progress of an organization is the proper control
and monitoring of its operations. Policies and procedures should be established so
that the objectives set by top management will be attained. These policies will help
in the effectiveness and efficiency of the company's operations. It will be a tool to
manage and direct the employees in daily operations. The following policies must
be followed:
● Employees must come on time.
● Tardiness and absences must be avoided. For absences one must
secure a valid certification from a medical doctor.
● Employee must wear proper attire and must maintain proper hygiene.
● Personal use of any business property outside of business is
prohibited.
● Rest is only applicable on emergency and break time.
● Every employee must exercise good and proper conduct.
● Each of the employees should only must focus on their own
responsibilities
Violations and Sanctions
To ensure that rules and regulations must be complied. The following
illustrates various offenses with their corresponding sanctions.
Table 15. Violations and Sanctions
Violations 1st Offense 2nd Offense 3rd Offense 4th Offense
Tardiness and Oral Written Suspension and

absences Explanation Explanation Salary Deduction Termination
Wearing Oral Written Suspension and

improper attire Explanation Explanation Salary Deduction Termination
Violation on
proper Oral Written Suspension and
hygiene. Explanation Explanation Salary Deduction Termination
Oral Written Suspension and Termination

Bad conduct Explanation Explanation Salary Deduction
Unauthorized
Override of Oral Written Suspension and
activities Explanation Explanation Salary Deduction Termination
L e g a l a n d T a x a t i o n A s p e c t | 61
Chapter V
LEGAL AND TAXATION ASPECTS
In every business organization, legal and taxation aspect is essential in
making the venture possible. This is to regulate and maintain by way of rules and
regulations set by the government. These rules and regulation vary from the legal
requirements needed by the Local Government Unit and the National Government
with the concerned local government agencies that regulates the business
establishments which includes complying with permits and paying appropriate
taxes. These requirements also assure the continuance of the operation of the
business and the interest of the government in it.
The legality of the existence of the establishment is based on the
compliance of the requirements. These requirements give the government the
power to overlook in the operations of the business venture and how it is managed.
This chapter deals with the legal and taxation requirements set forth by the
government affecting the proposed business. This is import for the implements to
know and understand what is expected from them by the government in their
business dealings and transactions.
LEGAL ASPECT
Planning, creating, owning and operating a new business is not easy task
as this would entail a lot of decision making like what kind of nature of business to
be established. Also, creating and deciding what would be the name of the
business venture is hard task. The whole process of owning a business must be
studied well to achieve its goals.

The legal consideration should be thought over in order for the business to
function in accordance with the law. It is necessary that it is established by the
implementer adhering to all requirements set forth by the government and by the
law. It is also important that the owner should know all the requirements, permits,
and licenses needed to establish the legality of the business.
These legal considerations are the first thing that an entrepreneur must
know as this would be the very foundation of the beginning of the business and the
integral part of its operations. Thus, knowing all these legal things is essential on
creating business. Any business organization should comply with all the permits,
licenses, and registration before starting their own enterprise.
Registration with the Security Exchange Commission (SEC)
Listed below are the necessary procedures that must be followed when
registering the business with the Security Exchange Commission.
Procedures:
1. Secure name verification slip from the Records Division.
2. Proceed to cashier for the payment of filing fee.
3. Submit documents to the Receiving Unit of the Record Section.
4. The documents are then forwarded to the Company Registration and
Monitoring Department (CMRD) and assigned to processors.
5. Typing pool prepares Certificates of Registration and returns to a
processor (or a lawyer) and Assistant Director for initials.
6. Director of CMRD signs the Partnership.

7. The Certificate of Registration is forwarded to the Releasing Unit of the
Records Division, where it may be claimed by the applicant upon the
presentation of receipt as proof of payment of the filing fee of Php 800.00.
The requirements for registration as follows:
 Verification Slip Form
 Accomplished Registration Data Sheet
 Duly notarized Articles of Partnership (for limited partnerships, this should
be executed under oath)
 Joint affidavit of two (2) partners undertaking to change partnership name
with another person, entity or firm has acquired the prior right to the use of
the same name or one similar to it (not required if Articles of Partnership
has provision on this commitment).
 Licenses and Clearance from other government agencies (if needed)
 Registration fee depending on the capital contribution
 Deed of Assignment
 For Partnership with foreign partners
a) SEC Form No. F-105
b) Bank Certificate on the capital contribution of the partners
c) For foreign partners who want to register their investments
with the BSP, proof of remittance is needed.
Note: If it is a limited partnership, the word “Limited” or “Ltd.” should be
added to the partnership name. Articles of Partnership for limited

partnerships should be under the oath only (jurat) and not acknowledged
before notary public.
Securing Permits and Licenses
Parts of legal requirements in complying with the underlying laws to
establish the legal existence of a business entity in the Philippines is to secure
permits and licenses to start the business operation. As proof of such compliance,
documentary evidence must be given. In every business organization, it is a
requisite to comply with all the legal requirements set forth by the government by
the government for its establishment. Thus, some types of businesses are required
to secure a special clearance, license, or permit from some other government
agencies. The following are the requirements needed to get a business permit:
Business Permit
This can be obtained at the City Treasurer’s Office of Mandaue City Hall.
The permit is valid only for one (1) year and must be filled annually. Requirements
to obtain the business permit are the following:
I. For issuance of Assessment for Payments
 Duly filled- up and notarized application form (must be signed by the
owner)
 Photocopy of one valid ID of the signatory
 Personal proof of billing of owner (if single proprietor)
 Picture of the business location that includes the nearby
establishments
 Sketch of the business location

 Certified True Copy of Department of Trade and Industry
Registration Certificate
II. For the issuance of Mayor’s Permit
The issuance of the business permit can only be done after the registration
of the business in Department of Trade and Industry. The requirements are as
follows:
 Barangay Clearance
 Community Tax Certificate with Gross Receipt
 BIR Clearance
 SSS Clearance
 CCENRO
 Sanitary Permit
 DTI Registration
 Fire Safety Certificate
 Fire and Safety Clearance
The Joint Inspection Report must be fully filled and signed by the authorized
personnel in the different Offices.
III. For verification of requirements (must be complied within 60 days from the
issuance of Mayor’s Business Permit).
Submit original and photocopy of the following documents:
 All the documents enumerated under I and III above.
 Barangay Clearance with the official receipt of payment.
 SSS, PHILHEALTH, and PAG-IBIG Clearance

 Sanitary Permit together of the List of Employees duly certified by the City
Health Officer
 Fire Safety Inspection Certificate
 Real Property Tax Clearance of Certificate of NO DELINQUENCY is owned
by the applicant OR Contract of Lease if renting the building and land
(submit two photocopies)
 Taxpayer Identification Number (TIN), BIR issued Certificate of Registration
(COR), Proof of Payment of BIR Annual Registration Fee of Php 500.00 per
establishment.
 Community Tax Certificate of Employees
 Occupational Tax and Professional Tax of Employees
 Official Receipt of the Registration of Weights and Measures if engaging
with Weights and Measures
 Other Requirements form National and Local Government Agencies as the
case maybe (Additional Requirements based from the Joint Inspection
Team Remarks)
Barangay Clearance
This is to certify that the proposed project has been approved and legally permitted
to operate. This is to be acquired from the Office of the Barangay Captain where
the business is located.

Police Clearance
This document will serve as a proof that the prospective implement has no prior
criminal offenses. This can be obtained from the Cebu City Police Station where
the business is to be established.
Sanitary Permit
Sanitary permits are important in conducting a business. The permit should be
first approved by the City Hall director after the project has completed all the proper
sanitation. This should be done before the commencement of the business. The
permit is renewable every year. The requirements are:
 Inspection of Premises (submit inspection report)
 Health Card
 Analysis of Water Supply
Fire and Safety Clearance
Once the business had been fully inspected, evaluated and verified that is
conformed the safety and protection requirements of the Fire Code of the
Philippines, fire and safety clearance can now be issued. It can be procured from
the Office of the City Marshall.
Registration to the Land of Transportation Office (LTO)
This regulatory body of the government is responsible for setting up rules and
regulations and applications of such to ensure the safeguard of land travel
vehicles.
Below are the requirements needed and procedures to be done when
registering a locally manufactured Motor Vehicle:

Requirements
 Original Sales Invoice of MV
 Certificate of Stock Report (CSR)
 Certificate of Quality Control
 Valid PNP-HPG MV Clearance Certificate
 Duly accomplished and approved Motor Vehicle Inspection Report (MVIR)
 Appropriate insurance certificate of cover
 Valid Certificate of Public Convenience duly confirmed by the LTFRB, in
case of for hire MV’s
 Valid Motorized Tricycle Operators Permit (MTOP), for TC only
 Taxpayer’s Identification Number (TIN)
Procedure
1. Proceed to the transaction counters and submit all the required documents
to the Evaluator for evaluation and computation of fees.
2. Proceed to the Cashier when your name is called for the necessary fees
and obtain an Official Receipt (OR).
3. Proceed to the Releasing Counter when your name is called to obtain the
Certificate of Registration (CR), plates, stickers, and other requested
documents.
Venue
New Registration Units of the Regional Offices where the sale of the particular
motor vehicle is reported.

Application for Social Security System Membership
The Social Security System is a government agency that provides
retirement, health and insurance benefits to the employees who are members
thereof. As defined by the Republic of the Philippines, it is a social insurance
program that offers salary, calamity, educational and stock investment loan.
Under to Republic Act No. 8282, all private employers are required to
register their employers as a member of the Social Security System. The
implementer, who is considered as the soon-to-be employer has the obligation to
provide all the benefits legally entitled to be received by the employees. Covered
employees are entitled to a package of benefits under the Social Security and
Employer’s Compensation (EC) Programs in the event of death, disability,
sickness, maternity, retirement and old age.
The following are the requirements:
 Fill out and submit Employer Registration Form (SS Form R-1).
 Submit Employment Report (SS Form R-1A).
 Photocopy of an Authority to Operate from appropriate government office/s
(example: Registration of Business Name, Business Permit, or any proof of
business operations).
Application for Philippine Health Insurance Membership
PhilHealth is a government owned insurance that aims to their members
and beneficiaries with health financial and insurance. All employees, both
government and private are entitled to have PhilHealth membership.

All government and private sector employers are required to register with
PhilHealth to enable them to provide health insurance coverage to their
employees. Private sector employers who have registered with the SSS prior to
July 1, 1999 are automatically registered but are required to update their records
with PhilHealth. PhilHeath is often deducted once a month on the salary of an
employee, this employee is automatically become a member and is entitled to
include his or her beneficiaries.
Employers may register through Philippine Business Registry (PBR). Once
registered in this system, they will no longer be required to submit documents.
However, if the employer falls to register through the PBR, the following shall be
submitted.
1. Single Proprietorship- Department of Trade and Industry (DTI) Registration
2. Partnership and Corporation – Securities and Exchange Commission (SEC)
Registration
3. Foundation and non-profit organizations - Securities and Exchange
Commission (SEC) Registration
4. Cooperatives – Cooperatives Development Authority (CDA) Registration
5. Backyard industries or ventures and micro- business enterprises- Barangay
Certification and/ or Mayor’s Permit
In order to register their employees, they must submit the following to any of the
PhilHeath Office:
A. Government and Private Sectors
1. Employer Data Record (ER1) Form (in duplicate)

2. PhilHealth Membership Registration Form (PMRF)
B. Kasambahay Employer
1. Household Employer United Registration Form
2. Household Employer Unified Report Form
3. Kasambahay Unified Registration Form
After processing, the employer will be issued the following:
 PhilHealth Employer Number (PEN) and the Certificate of Registration
 PhilHealth Identification Number (PIN) and Member Data Record (MDR) of
registered employees
Employers (except for household employers) are required to display the Certificate
of Registration in conspicuous area of their offices or establishments. Upon
submission of required documents, the company shall get a receiving copy of all
forms as proof of membership until PhilHealth releases the employer and
employee numbers within three months.
Application of the Membership to HDMF
Pursuant to Republic Act 7742 which was fully implemented on January 1,
1995, membership to the PAG-IBIG Fund shall be mandatory for all the employees
covered by the Social Security System (SSS) and/ or Government Service
Insurance System (GSIS) and who are earning at least P4,000.00 a month. This
mandatory coverage is also extended whose age is up to 60 years old and who
are compulsorily covered by the SSS. In the absence of an explicit exemption from
SSS coverage the said exemption, upon assumption of office shall be compulsorily
covered by the Fund.

Membership for employees who are earning P4,000.00 a month, including
those who belong to other working groups shall be a voluntary basis. The following
are the procedures on the registration of employers and its employees to the PAG-
IBIG Fund.
1. Proceed to the Marketing and Enforcement Division of the concerned
branch and request for a copy of the Membership Registration/ Remittance
Form (MRF) [FPF060].
2. Accomplish and submit two (2) copies of the MRRF together with the
following supporting documents to the Marketing and Enforcement Division:
a. Members Data Form (MDF) of the employees
b. Certified of SSS Coverage and Compliance (for the current year)
if private employer
c. GSIS Certificate of Membership, if government employer.
FOR PARTNERSHIP
 SEC Registration Certificate
 Mayor’s Permit or Business Permit
PROCEDURE OF REGISTRATION FOR FIRST-TIME MEMBER-COMPANIE
1. Accomplish two copies of the Membership- Registration/ Remittance Form
(M1-1)
2. Prepare the following documents (2 photocopies):
a. SEC registration or the company’s DTI and SSS registration
b. R3 and R1A forms (SSS registration and remittance forms)

3. Present all documents (M-1, registration and SSS forms) to the Marketing
Division of the concerned Pag-IBIG branch office for verification (bring all
originals for authentication). Secure referral slip from Marketing Staff.
4. Proceed to the office’s Cash Division for payment of first monthly
remittance.
5. Submit the “referral slip” prepared by the Marketing staff and all verified
documents to the cashier.
6. Succeeding remittance data shall depend on the schedule of payment of
the office (see below). Accomplished M1-1 shall serve as the remittance
form for succeeding payments.
7. Submit to the Marketing office 2 copies of the accomplished Member’s Data
Forms (MDF) of all qualified employees to the Marketing Division on the
second month after the first payment of contributions.
The names of newly-hired employees that covered by RA 7742 should be included
in the accomplished M1-1 form and their corresponding new employees shall be
submitted on the following month.
Schedule of Payment for Company- Members:
First Letter of Company Name Remittance Schedule
A-D 10th to the 14th day of the month
E-L 15th to the 19th day of the month
M-Q 20th to the 24th day of the month
R-Z 25th to the end of the month

 Monthly contributions of unemployed members (reactivating or non-working
spouse) shall be P100.00
 The unemployed member has the option to upgrade his monthly
contributions, but may not downgrade the amount
 Unemployed members may avail of the Multi-Purpose Loan but not a
housing loan from PAG-IBIG
 Individual payers or voluntary members have the option to choose their
terms of payment, e.g. monthly, bi-monthly, and quarterly, etc.
Registration with the Bureau of Internal Revenue
Registering your Business with the Bureau of Internal Revenue (BIR) is one
of the things that a company owner needs to execute, to make the enterprise
legally and to avoid the risk of being taxed evader. Whether you are an individual
(professional or consultant) or a company (single proprietorship, partnership,
cooperation), it is a must to complete the whole registration process. Here are the
lists of requirements you need to comply in order to register your enterprise with
the BIR:
Documentary Requirements
1. Certification
 SEC Registration Certificate
 Tax Identification Number/ TIN (Professional/ Consultant)
2. Contract of Lease or Land Title
 Contract of Lease- if you rent the place
 Land Title/ Tax Declaration – if you own the place

3. Mayor’s Permit
 Barangay Clearance
If you have completed all of the stated requirements, you are now ready to proceed
with the registration with the BIR. Here are the ten steps for registering your
business with the BIR.
1. Prepare or accomplish in three copies the following BIR forms needed for
your business. They are available at all BIR offices or download the forms
online.
 BIR Form 1901 (Application Form)
 BIR Form 0605 (Payment form)
 BIR Form 2000 (Documentary Stamp Tax on Lease)
2. Go to the Revenue District Office (RDO) that has jurisdiction over your
registered address.
3. Go to the officer of the day. He will assess how much to pay for the
registration. Normally, the registration fee is P500.00 while the
Documentary Stamp Tax on Subscription depends on how much your
capital is while the Documentary Stamp Tax on Lease depends on your
monthly rental. Please submit these forms and documents to the officer of
the day.
 BIR Form 1901 (Application Form)
 BIR Form 0605 (Payment Form)
 BIR Form 2000 (Documentary Stamp Tax on Lease)
 Photocopy of SEC Registration Certificate

 Contract of Lease
4. After the assessment, go to the accredited banks for payment. Usually
authorized banks are within the vicinity of the RDO or you can ask anyone
from the BIR in that RDO to be sure. Submit these assessed forms: BIR
Form 0605 (Payment Form) and BIR Form 2000 (Documentary Stamp Tax
on Lease) to the teller of the bank.
5. After the payment has been made, go back to your RDO. Get a queue
number from the guard. Go to the registration section for the receiving of
your application. Wait for your number to be called and submit a photocopy
of BIR form payments. Special BIR payment form (all Accredited Banks of
RDO have special payment form for BIR only) and other documentary
requirements such as; BIR form 1901 (Application Form), BIR Form 0605
(Payment Form), BIR Form 2000 (Documentary Stamp Tax on Lease), Tax
Declaration and a Photocopy of Mayor’s Certification.
6. Schedule for release. Some RDO’s may request you to attend a seminar
about the filling of your taxes before the actual release of Certificate of
Registration but some are not prepared in most cases. Also, don’t forget to
ask for a receipt. Some RDO’s will automatically give it to you together with
the COR and some do not.
7. Purchase Books of Accounts. Normally for Vat (Value Added Tax) there are
six (6) Books of Accounts while there are four (4) Books of Accounts of NON
VAT. These are the following:

 NON- VAT
 Journal
 Ledger
 Cash Receipt
 Cash Disbursement
8. The Register Books of Accounts
 Accomplished BIR Form 1905
 Books of Accounts
Submit BIR Form 1905 and Books of Accounts to the Registration Section
and wait for the release.
9. Apply to Print (ATP)
 Accomplished BIR Form 1906
 Photocopy of COR and paid Registration BIR 0605
10. Lastly, printing of your receipts (Official Receipts and / or invoices).
Registration with Department of Labor and Employment
The Department of Labor and Employment (DOLE) is the primary
government agency mandated to promote gainful employment opportunities,
develop human resources, protect workers and promote their welfare, and
maintain industrial peace. Originally, DOLE started as a small bureau in 1908. It
became a department on December 8, 1933 with the passage of Act 4121.
DOLE stands as the national government agency mandated to formulate
policies, implement programs and services, and serve as the policy-coordinating
arm of the Executive Branch in the field of labor and employment. The organization
and functions of DOLE are in accordance with the provisions of Executive Order
No. 126, as amended, the Labor Code of the Philippines, and other relevant and
pertinent legislations.
DOLE has exclusive authority in the administration and enforcement of
labor and employment laws and such other laws as specifically assigned to it or to
the Secretary of Labor and Employment.
The general functions of DOLE are the following stated below:
 Enforce social and labor legislation to protect the working class and regulate
the relations between the worker and his employers;
 Formulate and recommend policies, plans and programs for manpower
development, training, allocation, and utilization;
 Recommend legislation to enhance the material, social and intellectual
improvement of the nation's labor force;
 Protect and promote the interest of every citizen desiring to work locally or
overseas by securing for him the most equitable terms and conditions of
employment, and by providing social and welfare services;
 Regulate the employment of aliens, including the enforcement of a
registration or work permit system for such aliens, as provided for by law;
 Formulate general guidelines concerning wage income policy;
 Recommend necessary adjustments in wage structures with the view to
developing a wage system that is consistent with national economic and
social development plans;

 Provide for safe, decent, humane and improved working conditions and
environment for all workers, particularly women and young workers;
 Maintain a harmonious, equitable and stable labor relations system that is
supportive of the national economic policies and programs;
 Uphold the right of workers and employers to organize and promote free
collective bargaining as the foundation of the labor relations system;
 Provide and ensure the fair and expeditious settlement and disposition of
labor and industrial disputes through collective bargaining, grievance
machinery, conciliation, mediation, voluntary arbitration, compulsory
arbitration as may be provided by law, and other modes that may be
voluntarily agreed upon by the parties concerned; and
 Perform such other functions as may be provided by law
TAXATION ASPECTS
In organizing any business entity, it is important to know the corresponding
taxes that will be imposed to recognize tax provisions and tax laws. Also, the
applicable tax exemptions or tax holiday if ever applicable to the proposed project
are equally important to consider Taxation aspect will help in building up integrity
on financial projection, develops feasibility of proposed business and proper
business and proper adherence to rules and regulations of the state by which every
citizen and business should abide.
Taxation aspect is one way of the government in generating income to the
business in promoting general welfare to the public. Taxes are imposing to the
personal income of the individuals and to the property of any entity. Moreover,
taxes are not levied only to the citizen but also to the business in any form such as
sole proprietorship, partnership and corporation. The funds generated by the
government are used in supporting the state in carrying out their different functions.
The following are the applicable taxes for this proposed project.
 Value-Added Tax (VAT)
VAT is a business tax imposed on persons or entities that sell or lease
goods, properties, or services in the course of trade or business whose gross
annual sales and/ or receipts exceeds to Php 1,919,500.00. This is also imposed
to all VAT-Registered person or entities.
 Expanded Withholding Tax
Expanded withholding tax on certain income payments and withholding tax
on compensation are two of the common withholding taxes you should withheld
and remit to the government, when applicable. In turn, the payees of these income
payments can claim those taxes withheld as creditable against their income tax
due for the corresponding quarters or year by attaching the applicable certificate
of creditable tax withheld (BIR Form 2316) for taxes withheld on compensation and
BIR Form 2307 for taxes withheld at source).
 Documentary Stamp Tax
Documentary Stamp Tax is a tax imposed on the documents, instruments,
loan agreements and papers evidencing the acceptance, assignments, sale or
transfer of an obligation, right or property incident thereto. The amount of tax is
either fixed or based on the par or face value of the document or instrument.
The tax is paid by the person, making, signing, issuing, accepting, or
transferring the documents. However, whenever one party to the taxable document
enjoys exemption from the tax, the other party thereto which is not exempt shall
be the one directly liable for the fee.
Except as otherwise provided by the rules and regulations, the tax return
shall be filled and the tax due shall be paid at the same line within ten (10) days
after the close of the month when the taxable document was signed, accepted or
transferred. In lieu of the foregoing, the tax may be paid either through purchase
of DST stamp and actual affixture, or by imprinting a secured mark on the taxable
document through the web-based Electronic Documentary Stamp Tax (EDST)
System. Failure to stamp a taxable document shall not invalidate the same.
However, it shall not be recorded (i.e. in the Registry of Deeds) or admitted or used
as evidence in any court until the requisite stamp is fixed thereto and canceled.
Furthermore, no notary or other document unless the administer oaths shall add
his acknowledgement to the document unless the proper documentary stamp is
affixed thereto and canceled. The following are the requirements needed:
 Photocopy of document(s) to which the documentary stamp shall be
affixed, in case of constructive affixture of Documentary Stamp Tax
 Proof of exemption under special law, if applicable
 Duly approved Tax Debit Memo, if applicable
 Proof of payment of documentary stamp tax paid upon the original
issue of the stock, if applicable.

F i n a n c i n g A s p e c t | 82
CHAPTER VI
FINANCING ASPECT
Without the essential resources, a business cannot commence. The most
important resources are its financing resources, for these are the lifeblood of the
business entity. No matter how ambitious and efficient the business is, without the
resources needed, it will never start. This phase of the study elaborates more on
how the proponents would make the proposed study successfully work.
One of the major and most vital parts of the feasibility study is its financing
aspect, for it provides the potential resources of funding and the needs of the
business are faithfully identified, determined, and deliberated. It is highly essential
for the financing aspect to ascertain when it comes to figures, or the estimated
budget required to sustain and finance the necessary regulatory, statutory and
other requirements for the commencement of the business operations. The
proponents have undertaken intensive research to discover the cost of the
resources required for its administration and production. It serves as an estimation
and appropriation of the financial reserves for the proposed product.
SOURCES OF FINANCING
Starting up a business is quite expensive especially for one standing as a
partnership business. The business as a partnership will seek contribution from
the partners. The proponents have come up with the decision that the partners will
have equal shares of contribution to start-up the business, and to cover the
expenses from the beginning of its preparation up until the normal business
operations.
The estimated cost of the proposed business will be thoroughly discussed in
the succeeding chapter to aid in the evaluation of the funds needed for the
establishment of the project.
Table 16
ESTIMATED PROJECT COST
Pre-operating expenses Schd Amount Total
Project Feasibility Cost 1 10,750.00

Permits and Licenses 2 2,110.00 ₱12,860.00
IMPROVEMENTS AND EQUIPMENT

Leasehold Improvement 3 58,509.00
Production Equipment 4 51,621.00
Office Equipment 5 67,589.00
Delivery Van 20 720,000.00
Office Furniture & Fixtures 6 23,311.00
Production Furniture & Fixtures 7 23,539.00 944,569.00
WORKING CAPITAL
Advertising Expense 8 55,000.00
Office Supplies 9 8,145.25
Direct Materials 10 491,630.00
Indirect Materials 11 1,465.00
Salaries and Wages 12 137,200.00
Professional Fees 13 20,000.00
Rent 14 45,000.00
Utilities Expense 15 6,099.00
Miscellaneous Expense 16 2,821.00
Repairs and Maintenance 17 13,000.00
Fuel Expense 18 765.00
Installation Expense 19 35,000.00 816,125.25
Total ₱1,773,554.75
SCHEDULE 1
PROJECT FEASIBILITY COST
Particulars Total Cost

Printing and Photocopying ₱1,000.00
Bookbinding 1,000.00
Snacks for Panelists 600.00
Honorarium 3,500.00
Prototyping 2,500.00
Grammar and Plagiarism Test 200.00
Miscellaneous Expense 1,000.00
Transportation 450.00
Bond papers 500.00
Total ₱10,750.00
SCHEDULE 2
PERMITS AND LICENSES

Barangay Clearance ₱100.00
Police Clearance 215.00
Mayor’s Business Permit 500.00
Sanitary Permit 100.00
Health Certificate 50.00
Fire Safety Inspection 100.00
SEC Registration Fee 800.00
Business Permit Notarization 100.00
Documentary Stamp Tax 145.00
Total ₱2,110.00
SCHEDULE 3
LEASEHOLD IMPROVEMENTS
Items Quantity Unit Unit Cost Amount

Cement 25 Bags 240.00 ₱6,000.00
Sand 25 Bags 40.00 1,000.00
Gravel 15 Bags 40.00 600.00
Hollow Blocks 300 Pcs 25.00 7,500.00
Plywood 10 Sheets 950.00 9,500.00
Paint Thinner 8 Liters 90.00 720.00
Screws and Bolts 50 Pcs 5.00 250.00
Nails #2 6 Kg 65.00 390.00
3” PVC pipes 8 Pcs 375.00 3,000.00
1” PVC pipes 4 Pcs 125.00 500.00
Convenience 10 Pcs 285.00 2,850.00
Outlet Electric 35 Meters 30.00 1,050.00
Wire
10 Labor 5 Days 305 1,525.00
Lavatory 1 Pcs 5,000.00 5,000.00
Wood doors 4 Pcs 500.00 2,000.00
Door Knobs 4 Pcs 499.00 1,996.00
Glass Door 1 Pcs 7,000.00 7,000.00
Lock 4 Pcs 17.00 68.00
Door Spring 4 Pcs 40.00 160.00
Light Bulb 20 W 5 Pcs 250.00 1,250.00
Fluorescent 5 Pcs 290.00 1,450.00
Cement Towel 8 Pcs 45.00 360.00
Faucet 3 Pcs 130.00 390.00
Total ₱54,559.00
SCHEDULE 4
PRODUCTION TOOLS AND EQUIPMENTS
Particulars Quantity Unit Cost Total Cost

Welding Machine 10 3,998.00 ₱39,980.00
Soldering Iron 5 399.00 1,995.00
Soldering Lead 4 99.50 398.00
Multimeter 3 300.00 900.00
Charge Controller 1 3,200.00 3,200.00
Wire Strippers 4 412.00 1,648.00
Voltage Regulator 5 700.00 3,500.00
Total ₱51,621.00
SCHEDULE 5
OFFICE EQUIPMENT

Computer Set 2 11,699.00 ₱23,398.00
Air Conditioner 2 18,298.00 36,596.00
Emergency Lights 5 799.00 3,995.00
Telephone 2 1,800.00 3,600.00
Total ₱67,589.00
SCHEDULE 6
OFFICE FURNITURE AND FIXTURE

Office Table 3 1,750.00 ₱5,250.00
Office Chair 3 754.00 2,262.00
Steel Cabinet 2 2,400.00 4,800.00
3 Seater Gang Chair 2 5,400.00 10,800.00
Wall Clock 1 199.00 199.00
Total ₱23,311.00
SCHEDULE 7
PRODUCTION FURNITURES AND FIXTURES

Production Table 4 3,990.00 ₱15,960.00
Production Chair 6 60.00 360.00
Industrial Fan 3 2,340.00 7,020.00
Wall Clock 1 199.00 199.00
Total ₱23,539.00
SCHEDULE 8
OFFICE SUPPLIES

Ballpen 5 70.00 350.00
Columnar Notebook 1 49.75 49.75
Folder 3 10.00 30.00
Bond paper 1 360.00 360.00
Receipt 2 433.00 866.00
Logbook 1 600.00 600.00
Masking Tape 5 199.10 995.50
Staple Wire 3 90.00 270.00
Marker 4 285.00 1,140.00
Glue 3 250.00 750.00
Calculator 3 428.00 1,284.00
Scissors 5 130.00 650.00
Ink 8 100.00 800.00
Total ₱8,145.25
SCHEDULE 9
DIRECT MATERIALS

Steel Plate 160 1,680.00 ₱268,000.00
Piezoelectric Sensor 80 220.00 17,600.00
Steel Pipe 20 1,400.00 28,000.00
Spring 40 40.00 1,600.00
Ferric Chloride 20 25.00 500.00
Duplex Wires 20 10.00 200.00
Capacitor 40 30.00 1,200.00
Flat Bars 20 60.00 1,200.00
Diode 20 160.00 3,200.00
Security Light 20 10,500.00 210,000.00
Printed Circuit Board 20 16.00 320.00
Connecting Wires 20 15.00 300.00
Battery Deep Cycle 20 6,556.00 131,120.00
Total ₱663,630240.00
SCHEDULE 10
INDIRECT MATERIALS

Shovel 5 200.00 1,000.00
Hacksaw 3 90.00 270.00
Compass Saw 3 65.00 195.00
Total ₱1,465.00
SCHEDULE 11
SALARIES ANG WAGES
No. of Rate per No. of

Particulars Employees Day Days/month Total
Production Worker 4 366.00 20 ₱29,280.00
Project Engineer 1 1,400.00 20 28,000.00
Electrical Foreman 1 600.00 20 12,000.00
Accounting Staff 2 600.00 20 24,000.00
Security Guard 2 366.00 20 14,640.00
Utility Worker 2 366.00 20 14,640.00
Delivery man 2 366.00 20 14,640.00
Total ₱137,200.00
SCHEDULE 12
RETAINER’S EXPENSE

Bookkeeper 1 20,000.00 ₱20,000.00
Total ₱20,000.00
SCHEDULE 13
RENT EXPENSE

Facility/Office Rent for one month ₱45,000.00
Total ₱45,000.00
SCHEDULE 14
UTILITIES EXPENSE

Electricity ₱4,000.00
Water 1,000.00
Telecommunications 1,099.00
Total ₱6,099.00
SCHEDULE 15
MISCELLANEOUS EXPENSE

Broom 3 50.00 ₱150.00
Dustpan 3 75.00 225.00
Garbage Can 5 100.00 500.00
Rags 100 1.00 100.00
Trash Bags 10 29.50 295.00
Mop 3 189.00 567.00
Alcohol 5 73.50 367.50
Floor Rag 15 30.00 450.00
Cleaning Detergent 4 36.75 147.00
Sponge 4 5.00 20.00
Total ₱2,821.50
SCHEDULE 16
REPAIRS AND MAINTENANCE
Machinery ₱13,000.00
Total ₱13,000.00
SCHEDULE 17
FUEL EXPENSE
Particulars Liter Used Unit Cost Total Cost

Fuel expense 17 45.00 ₱765.00
Total ₱765.00
SCHEDULE 18
INSTALLATION EXPENSE

Installation Expense ₱35,000.00
Total ₱35,000.00
SCHEDULE 19
DELIVERY VAN

Delivery Van ₱720,000.00
Total ₱720,000.00
SCHEDULE 20
ADVERTISING EXPENSE
Particulars No. of Months Total Cost

Information Drive 3 ₱3,000.00
Sample Unit for Advertising 52,000.00
Total ₱55,000.00
F i n a n c i a l A s p e c t | 91
CHAPTER VII
Financial Aspect
This chapter provides useful information about the profitability of the “Proposed
Production of Piezoelectricity in the Municipality of Barili” through the quantitative
presentation of the results based on the marketing, technical, management, and
legal and taxation aspect. With this, the proposers are expected to determine the
financial viability of the proposed product. The assumptions used in the preparation
of the financial statements as follow:
GENERAL ASSUMPTIONS
The following are some of the major assumptions used by the proponents in
the preparation of the financial statements as presented in this chapter.
1. The entity will adopt a calendar reporting period ending December 31 every
year.
2. The business starts pre-operating activities on September 1, 2018 and will
formally starts its operations om January 5,2019.
3. The initial capital is Php 5,000,000.00.
4. The selling price of piezoelectric device is Php 51,744.10
5. Pricing of the product is computed as follows: The production of
piezoelectric devices will be based on the number of units as shown in the
technical aspect.
Table 17. Total Manufacturing Costs
Raw Materials Used 5,789,928.00
Direct Labor Cost 527,040.00
Factory Overhead 2,610,841.23
Total Manufacturing Cost Php 8,927,809.23
Table 18. Selling Price
Total Manufacturing cost 8,927,809.23
Divided by: Production Capacity per year 240
Total 37,199.21
Multiplied by mark up rate 30%
Total Php48,358.97
Government 7% 3,385.13
Selling Price Php51,744.10
6. There will be no increase in production capacity even if the production
workers are increased in every two years.
7. The increase of production workers is employed to aid the absences
incurred by the other workers and they serve as a helping hand to the
engineers.
8. At the end of the year, sales are 50% on account while the remaining 50%
is on cash basis. An allowance for doubtful accounts is established and it is
2% of account receivable every year.

9. The entity follows FIFO basis in inventory.
10. Eighty percent of the entity’s purchase of direct materials will be on credit
basis while the remaining 20% is on cash basis.
11. All indirect materials will be purchased on cash basis.
12. The cost of all indirect and direct materials will increase by 3% in every two
years. The increase of 3% was taken from the survey conducted from the
hardware companies and suppliers which are based on their trending analysis.
13. Employee benefits such as SSS, PhilHealth, and PAG-IBIG for electrical
foreman, project engineer, security guard, accounting staff, bookkeeper,
production worker, utility worker are part of cost in production.
14. The contributions of delivery driver are part on selling expense.
15. The rent expense shall be allocated to the following 60% on factory
overhead, 30% on administrative expense and 10% on selling expense. There
will be prepaid rent. Monthly rent is constant in five years.
16. Repair and maintenance from the first year to fifth year remains constant
which is allocated to the following:
40% - Selling Expense
40% - Administrative Expense
20% - Factory Overhead
17. The liters of gasoline consumed will increase by 2% while the price per liter
will increase by 1%. This must be allocated by 10% factory overhead and 90%
to selling expense.
18. Utilities expenses will be allocated to 10% selling expense, 30%
administrative expense and 50% to factory overhead.
19. Utilities expense is expected to increase annually by 3%.
20. The following are the list of assets to be depreciated using the straight line
method with their corresponding useful lives:
Useful Life (in years)
Delivery Vehicle 15
Leasehold Improvements 5
Production tools and Equipment 5
Production Furniture and Fixtures 5
Office Furniture and Fixtures 5
Office Equipment 5
21. Allocation of depreciation expenses will be as follows:
Delivery Van:
90% - Selling Expense
10% - Factory Overhead
Production equipment, leasehold improvements and production
furniture and fixtures is allocated 100% on factory overhead.
Office equipment and office furniture and fixture is allocated 100% to
administrative expenses.
23. 13th month pay is treated as an expense.
24. Permits and licenses except notarial fee and documentary stamp tax are
paid once.
25. Cost of miscellaneous expense will increase by 1% in every two years
except for fire extinguisher which will be purchased once.
26. Advertising expense will not increase except for sample unit for
advertising.
27. Sample unit for advertising will increase by 3% every year.
28. Cost of office supplies will remain constant for five years.
DEMAND ASSUMPTIONS
1. The proponents assume that the entity will cover the municipalities via Barili
before commencing to the other side of Cebu south province.
2. Barili will be the testing ground before conducting to other municipalities.
3. The mayor’s recommendation will be used by the entity to advertise its
product to the other municipalities.
4. The units to be sold is based on the demand which is solved below:
Municipality’s total land area converted to kilometers divided by 68.58.
Ex.
Barili : Total land area in hectares 12,221
Converted to square kilometers 122.21
Square of 122.21 = 11.05 kilometers
Convert to meters = 11,050 meters / 68.58 meters
= 161 units
68.58 - Standard meters of each pole or street light
7. The other municipalities are solved by the same method.

8. On the 2nd year to 5th year there will be a constant of two municipalities
to accommodate
Piezo Industries
Statement of Financial Performance
For the years ended December 31, 2019 to December 31,2023
Sched. 2019 2020 2021 2022 2023
Sales 21 8,330,800.10 12,364,770.14 14,217,886.76 14,757,507.72 16,714,432.40
Less: Cost of Goods Sold 62 3,547,910.88 7,092,869.23 9,026,577.37 9,204,625.00 11,301,953.85
Gross Profit 4,782,889.22 5,271,900.90 5,191,309.39 5,552,882.72 5,412,478.55
Income Before Operating Expense 4,782,889.22 5,271,900.90 5,191,309.39 5,552,882.72 5,412,478.55
Less: Operating Expense 58 995,482.80 990,199.47 1,014,223.23 1,016,886.06 1,046,419.36
Income Before Tax 3,787,406.42 4,281,701.43 4,177,086.16 4,535,996.66 4,366,059.19
Less:Income Tax Expense 68 1,061,970.05 1,220,144.46 1,186,667.57 1,301,518.93 1,247,138.94
Net Income 2,725,436.37 3,061,556.98 2,990,418.59 3,234,477.73 3,118,920.25
97 | F i n a n c i a l A s p e c t
Piezo Industries
Statement Of Changes in Owner's Equity
Capital Beg. 5,000,000.00 7,725,436.37 10,786,993.34 13,777,411.93 17,011,889.66
Add:Net Income 2,725,436.37 3,061,556.98 2,990,418.59 3,234,477.73 3,118,920.25
Additional Contribution
Total 7,725,436.37 10,786,993.34 13,777,411.93 17,011,889.66 20,130,809.91
Less: Withdrawals - - - - -
Capital Ending Balance 7,725,436.37 10,786,993.34 13,777,411.93 17,011,889.66 20,130,809.91
Piezo Industries
Statement Of Cash Flows
2019 2020 2021 2022 2023
Cash Flows From Operating Expenses
Net Income 2,725,436.37 3,061,556.98 2,990,418.59 3,234,477.73 3,118,920.25
Uncollectible Account 6,942.33 3,361.64 1,544.26 449.68 1,679.30
Depreciation 92,913.80 92,913.80 92,913.80 92,913.80 92,913.80
Operating income before working capital changes 2,825,292.50 3,157,832.42 3,084,876.65 3,327,841.21 3,213,513.35
Working Capital changes
(Increase ) Decrease
VAT Payable -4,922.74 21,581.82 8,642.84 3,662.10 7,526.80
Income Tax Expense 1,061,970.05 158,174.40 -33,476.89 114,851.36 -54,379.99
Accounts Receivable 347,116.67 168,082.08 77,213.19 22,484.21 83,965.13
Inventory 4,087,783.90 549,004.90 -903,907.33 -1,075,399.23 -2,657,482.23
Accounts Payable 386,496.91 - 24,775.46 - 26,367.23
Accrued Expenses 121,819.05 60,828.56 42,701.72 35,333.97 46,387.26
Net cash provided by(used in) -44,244.78 2,681,330.22 3,954,213.93 4,534,603.67 5,812,931.74
operating activities
Cash flows from investing activities
Purchase of Furnitures and Fixtures- Production 23,539.00 - - - -
Purchase of Furnitures and Fixtures- Office 23,311.00 - - - -
Purchase of Production Tools and Equipment 51,621.00 - - - -
Purchase of Office Equipment 67,589.00 - - - -
Leasehold Improvement 58,509.00 - - - -
Purchase of Delivery Van 720,000.00 - - - -
Net Cash used in Investing Activities 944,569.00
Cash Flows from Financing Activities
Cash received (paid) from Bank Loan - - - - -
Cash received from partners 5,000,000.00
Cash Withdrawn by the Partners - - - -
Net cash provided by Financing Activities 5,000,000.00 - - - -
Increase(Decrease) in Cash 4,011,186.22 2,681,330.22 3,954,213.93 4,534,603.67 5,812,931.74
Add:Cash, Beg. - 4,011,186.22 6,692,516.44 10,646,730.37 15,181,334.03
Cash, End 4,011,186.22 6,692,516.44 10,646,730.37 15,181,334.03 20,994,265.77
Piezo Industries
Statement on Financial Position
December 31, 2019 - December 31, 2023
2019 2020 2021 2022 2023
Current Assets
Cash 4,011,186.22 6,692,516.44 10,646,730.37 15,181,334.03 20,994,265.77
Accounts Receivable 340,174.34 504,894.78 580,563.71 602,598.23 684,884.06
Inventory 4,087,783.90 4,636,788.80 3,732,881.47 2,657,482.23 -
Total Current Asset 8,439,144.45 11,834,200.02 14,960,175.54 18,441,414.49 21,679,149.83
Non-Current Asset
Furniture and Fixtures-Production 18,831.20 14,123.40 9,415.60 4,707.80 -
Furniture and Fixtures-Office 18,648.80 13,986.60 9,324.40 4,662.20 -
Production Tools and Equipment 41,296.80 30,972.60 20,648.40 10,324.20 -
Office Equipment 54,071.20 40,553.40 27,035.60 13,517.80 -
Leasehold Improvement 46,807.20 35,105.40 23,403.60 11,701.80 -
Delivery Vehicle 672,000.00 624,000.00 576,000.00 528,000.00 480,000.00
Total Non-Current Asset 851,655.20 758,741.40 665,827.60 572,913.80 480,000.00
Total Asset 9,290,799.65 12,592,941.42 15,626,003.14 19,014,328.29 22,159,149.83
Liabilities & Owner's Equity
Current Liabilities
Accounts Payable 386,496.91 386,496.91 411,272.37 411,272.37 437,639.60
VAT Payable -4,922.74 16,659.09 25,301.93 28,964.02 36,808.32
Income Tax Expense 1,061,970.05 1,220,144.46 1,186,667.57 1,301,518.93 1,247,138.94
Accrued Expenses 121,819.05 182,647.62 225,349.34 260,683.31 307,070.57
Total Current Liabilities 1,565,363.29 1,805,948.08 1,848,591.21 2,002,438.64 2,028,657.43
Non- Current Liabilities
Bank Loan - - - - -
Total liabilities 1,565,363.29 1,805,948.08 1,848,591.21 2,002,438.64 2,028,657.43
Owner's Equity 7,725,436.37 10,786,993.34 13,777,411.93 17,011,889.66 20,130,809.91
Total Liabilities & Partners Capital 9,290,799.65 12,592,941.42 15,626,003.14 19,014,328.29 22,159,467.33
URSAL, CAPITAL
2019 2020 2021 2022 2023

Initial Investment 1,000,000.00
Capital,beg. - 1,545,087.27 2,157,398.67 2,755,482.39 3,402,377.93
Add:Net Income (20%) 545,087.27 612,311.40 598,083.72 646,895.55 623,784.05
FERRER, CAPITAL
2019 2020 2021 2022 2023

Capital,beg. - 1,545,087.27 2,157,398.67 2,755,482.39 3,402,377.93
Add:Net Income (20%) 545,087.27 612,311.40 598,083.72 646,895.55 623,784.05
FANO, CAPITAL
2019 2020 2021 2022 2023

Capital,beg. - 1,545,087.27 2,157,398.67 2,755,482.39 3,402,377.93
Add:Net Income (20%) 545,087.27 612,311.40 598,083.72 646,895.55 623,784.05
CORTES, CAPITAL
2019 2020 2021 2022 2023

Capital,beg. - 1,545,087.27 2,157,398.67 2,755,482.39 3,402,377.93
Add:Net Income (20%) 545,087.27 612,311.40 598,083.72 646,895.55 623,784.05
CALISANG, CAPITAL
2019 2020 2021 2022 2023

Capital,beg. - 1,545,087.27 2,157,398.67 2,755,482.39 3,402,377.93
Add:Net Income (20%) 545,087.27 612,311.40 598,083.72 646,895.55 623,784.05
SCHEDULE 21
SALES
2019 2020 2021 2022 2023
Beginning Inventory - 79 87 68 47
Units Produce 240 240 240 240 240
TOTAL GOODS AVAILABLE FOR SALE 240 319 327 308 287
Less: Ending Inventory 79 87 68 47 0
Total Goods Sold 161 232 259 261 287
CASH SALES
Total Goods Sold 161.00 232.00 259.00 261.00 287.00
Multiplied By: 50.00% 50.00% 50.00% 50.00% 50.00%
Units Sold 80.5 116 129.5 130.5 143.5
MULTIPLIED BY: SELLING PRICE 51,744.10 53,296.42 54,895.32 56,542.18 58,238.44
Total Cash Sales 4,165,400.05 6,182,385.07 7,108,943.38 7,378,753.86 8,357,216.20
CREDIT SALES
Total Goods Sold 161.00 232.00 259.00 261.00 287.00
Multiplied By: 50.00% 50.00% 50.00% 50.00% 50.00%
Units Sold 80.50 116.00 129.50 130.50 143.50
MULTIPLIED BY: SELLING PRICE 51,744.10 53,296.42 54,895.32 56,542.18 58,238.44
Total Credit Sales 4,165,400.05 6,182,385.07 7,108,943.38 7,378,753.86 8,357,216.20
Total Sales 8,330,800.10 12,364,770.14 14,217,886.76 14,757,507.72 16,714,432.40
Schedule 22
Inventory
2019 2020 2021 2022 2023
Units at Ending Inventory (finished Goods) 79 87 68 47 0
Cost Per Unit 51,744.10 53,296.42 54,895.32 56,542.18 58,238.44
Total Ending Inventory (Finished Goods)` 4,087,783.90 4,636,788.80 3,732,881.47 2,657,482.23 -
Schedule 23
Spoilage Goods
2019 2020 2021 2022 2023
Production Capacity 240 240 240 240 240
Multiply: 1% provision of spoilage 1% 1% 1% 1% 1%
Estimated Spoiled Goods in Unit 2.4 2.4 2.4 2.4 2.4
Multiply: Cost per Unit 51,744.10 53,296.42 54,895.32 56,542.18 58,238.44
Estimated Spoiled Goods in Pesos 124,185.84 127,911.42 131,748.76 135,701.22 139,772.26
SCHEDULE 24
Direct Materials
Particulars 2019 2020 2021 2022 2023
Printed Circuit Board
Price 16.00 16.00 16.48 16.48 16.97
x Estimated Quantity 240 240 247 247 254
Total 3,840.00 3,840.00 4,070.56 4,070.56 4,311.50
Steel Plate
Price 1,680.00 1,680.00 1,730.40 1,730.40 1,782.31
Total 3,225,600.00 3,225,600.00 3,422,039.04 3,422,039.04 3,630,441.22
PiezoelectricSensor
Price 55.00 55.00 56.65 56.65 58.35
Total 52,800.00 52,800.00 56,015.52 56,015.52 59,426.87
Ferric Chloride
Price 25.00 25.00 25.75 25.75 26.52
Total 6,000.00 6,000.00 6,365.40 6,365.40 6,736.72
Spring
Price 40.00 40.00 41.20 41.20 42.44
x Estimated Quantity 9,600.00 9,600.00 10,368.00 10,368.00 11,197.44
Total 384,000.00 384,000.00 427,161.60 427,161.60 475,174.56
Flat Bars
Price 60.00 60.00 61.80 61.80 63.65
Total 144,000.00 144,000.00 152,769.60 152,769.60 162,073.27
Duplex Wires
Price 24.70 24.70 25.44 25.44 26.20
Total 5,928.00 5,928.00 6,283.93 6,283.93 6,655.87
Capacitor
Price 15.00 15.00 15.45 15.45 15.91
Total 7,200.00 7,200.00 7,638.48 7,638.48 8,103.66
Connecting Wires
Price 10.00 10.00 10.30 10.30 10.61
Total 2,400.00 2,400.00 2,546.16 2,546.16 2,694.69
Battery Deepcycle
Price 3,278.00 3,278.00 3,376.34 3,376.34 3,477.63
Total 1,573,440.00 1,573,440.00 1,669,262.50 1,669,262.50 1,770,920.58
Steel Pipe
Price 1,400.00 1,400.00 1,442.00 1,442.00 1,485.26
Total 336,000.00 336,000.00 356,462.40 356,462.40 377,256.04
Security Light
Price 525.00 525.00 540.75 540.75 556.97
Total 29,925.00 29,925.00 30,822.75 30,822.75 31,747.43
Diode
Price 8.00 8.00 8.24 8.24 8.49
Total 1,920.00 1,920.00 2,035.28 2,035.28 2,155.75
Total Direct Materials 5,797,453.70 5,797,453.70 6,169,085.53 6,169,085.53 6,564,593.96

Less: Input Vat (12%) 695,694.44 695,694.44 740,290.26 740,290.26 787,751.28
Total Direct Materials, Net of Vat 5,101,759.26 5,101,759.26 5,428,795.27 5,428,795.27 5,776,842.69
SCHEDULE 25
Indirect Materials
Particulars 2019 2020 2021 2022 2023
Shovel
Price 200.00 200.00 206.00 206.00 212.18
Total 1,000.00 1,000.00 1,236.00 1,236.00 1,485.26
Hacksaw
Price 90.00 90.00 92.70 92.70 95.48
Total 270.00 270.00 370.80 370.80 477.41
Compass Saw
Price 65.00 65.00 66.95 66.95 68.96
Total 195.00 195.00 267.80 267.80 344.79
Pliers
Price 145.00 145.00 149.35 149.35 153.83
Total 435.00 435.00 597.40 597.40 769.15
Electrical Tape
Price 25.00 25.00 25.75 25.75 26.52
Total 75.00 75.00 77.25 77.25 106.09
Screw Driver Set

Price 450.00 450.00 463.50 463.50 477.41
Total 900.00 900.00 1,390.50 1,390.50 1,909.62
Total Indirect Materials 2,875.00 2,875.00 3,939.75 3,939.75 5,092.32

Less Input Vat (12%) 345.00 345.00 472.77 472.77 611.08
Total Indirect Materials,Net of Vat 2,530.00 2,530.00 3,466.98 3,466.98 4,481.24
SCHEDULE 26
Direct Labor
2019 2020 2021 2022 2023
Production Workers
Rate of Salary per day 366.00 366.00 376.98 376.98 388.29
Multiply: no. of working days 240 240 240 240 240
Total Salary per Employee 87,840.00 87,840.00 90,475.20 90,475.20 93,189.46
Multiply: no of Employees 4 4 5 5 6
Annual Salary 351,360.00 351,360.00 452,376.00 452,376.00 559,136.74
Add: 13th Month Pay 29,280.00 29,280.00 37,698.00 37,698.00 46,594.73
Less: SSS Contributions 26,520.00 26,520.00 33,150.00 33,150.00 42,429.60
Philhealth Contributions 4,800.00 4,800.00 6,000.00 6,000.00 7,200.00
PAG-IBIG Contributions 7,027.20 7,027.20 9,047.52 9,047.52 10,857.02
Annual Salary, net Contributions 342,292.80 342,292.80 441,876.48 441,876.48 545,244.84
Total Direct Labor 342,292.80 342,292.80 441,876.48 441,876.48 545,244.84
SCHEDULE 27
SSS CONTRIBUTION
YEAR POSITIONS NO. OF EMPLOYEES MONTHLY SALARY Monthly Contribution ANNUAL CONTRIBUTION TOTAL ANNUAL CONTRIBUTION
TOTAL ANNUAL CONTRIBUTION
Aggregate Per Person Employer Empolyee Employer Employee Contibution FOH Selling
2019 Production Workers 4 29,280.00 7,320.00 2,210.00 1,090.00 26,520.00 13,080.00 39,600.00 39,600.00
Security Guard 2 14,640.00 7,320.00 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
Project Engineer 1 28,000.00 28,000.00 1,178.70 581.30 14,144.40 6,975.60 21,120.00 21,120.00
Electrical Foreman 1 12,000.00 12,000.00 884.00 436.00 10,608.00 5,232.00 15,840.00 15,840.00
Bookkeeper 1 20,000.00 20,000.00 1,178.70 581.30 1,178.70 581.30 1,760.00 1,760.00
Accounting Staff 2 24,000.00 12,000.00 1,768.00 872.00 21,216.00 10,464.00 31,680.00 31,680.00
Utility Worker 2 14,640.00 7,320.00 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
Delivery Man 2 14,640.00 7,320.00 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
TOTAL 169,400.00 149,600.00 19,800.00
Security Guard 2 14,640.00 7,320.00 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
Bookkeeper 1 20,000.00 20,000.00 1,178.70 581.30 1,178.70 581.30 1,760.00 1,760.00
Utility Worker 2 14,640.00 7,320.00 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
Delivery Man 2 14,640.00 7,320.00 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
TOTAL 169,400.00 149,600.00 19,800.00
Security Guard 2 14,893.80 7,539.60 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
Bookkeeper 1 20,000.00 20,000.00 1,178.70 581.30 1,178.70 581.30 1,760.00 1,760.00
Utility Worker 2 14,893.80 7,539.60 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
Delivery Man 2 14,893.80 7,539.60 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
TOTAL 181,280.00 161,480.00 19,800.00
Security Guard 2 14,893.80 7,539.60 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
Bookkeeper 1 20,000.00 20,000.00 1,178.70 581.30 1,178.70 581.30 1,760.00 1,760.00
Utility Worker 2 14,893.80 7,539.60 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
Delivery Man 2 14,893.80 7,539.60 1,105.00 545.00 13,260.00 6,540.00 19,800.00 19,800.00
TOTAL 181,280.00 161,480.00 19,800.00
Security Guard 2 15,340.61 7,765.79 1,178.60 581.40 14,143.20 6,976.80 21,120.00 21,120.00
Bookkeeper 1 20,000.00 20,000.00 1,178.70 581.30 1,178.70 581.30 1,760.00 1,760.00
Utility Worker 2 15,340.61 7,765.79 1,178.60 581.40 14,143.20 6,976.80 21,120.00 21,120.00
Delivery Man 2 15,340.61 7,765.79 1,178.60 581.40 14,143.20 6,976.80 21,120.00 21,120.00
TOTAL 199,100.00 177,980.00 21,120.00
SCHEDULE 28
PhilHealth Contribution
2019 Production Workers 4 29,280.00 7,320.00 400.00 400.00 4,800.00 4,800.00 9,600.00 9,600.00
Security Guard 2 14,640.00 7,320.00 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Project Engineer 1 28,000.00 28,000.00 350.00 350.00 4,200.00 4,200.00 8,400.00 8,400.00
Bookkeeper 1 20,000.00 20,000.00 250.00 250.00 250.00 250.00 500.00 500.00
Accounting Staff 2 24,000.00 12,000.00 300.00 300.00 3,600.00 3,600.00 7,200.00 7,200.00
Utility Worker 2 14,640.00 7,320.00 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Delivery Man 2 14,640.00 7,320.00 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
TOTAL 43,700.00 38,900.00 4,800.00
Security Guard 2 14,640.00 7,320.00 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Bookkeeper 1 20,000.00 20,000.00 250.00 250.00 250.00 250.00 500.00 500.00
Utility Worker 2 14,640.00 7,320.00 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Delivery Man 2 14,640.00 7,320.00 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
TOTAL 43,700.00 38,900.00 4,800.00
Security Guard 2 14,893.80 7,539.60 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Bookkeeper 1 20,000.00 20,000.00 250.00 250.00 250.00 250.00 500.00 500.00
Utility Worker 2 14,893.80 7,539.60 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Delivery Man 2 14,893.80 7,539.60 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
TOTAL 46,100.00 41,300.00 4,800.00
Security Guard 2 14,893.80 7,539.60 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Bookkeeper 1 20,000.00 20,000.00 250.00 250.00 250.00 250.00 500.00 500.00
Utility Worker 2 14,893.80 7,539.60 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Delivery Man 2 14,893.80 7,539.60 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
TOTAL 46,100.00 41,300.00 4,800.00
Security Guard 2 15,340.61 7,765.79 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Bookkeeper 1 20,000.00 20,000.00 250.00 250.00 250.00 250.00 500.00 500.00
Utility Worker 2 15,340.61 7,765.79 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
Delivery Man 2 15,340.61 7,765.79 200.00 200.00 2,400.00 2,400.00 4,800.00 4,800.00
TOTAL 52,100.00 47,300.00 4,800.00
SCHEDULE 29
Pag-Ibig Contribution
Security Guard 2 14,640.00 7,320.00 292.80 292.80 3,513.60 3,513.60 7,027.20 7,027.20
Bookkeeper 1 20,000.00 20,000.00 400.00 400.00 400.00 400.00 800.00 800.00
Utility Worker 2 14,640.00 7,320.00 292.80 292.80 3,513.60 3,513.60 7,027.20 7,027.20
Delivery Man 2 14,640.00 7,320.00 292.80 292.80 3,513.60 3,513.60 7,027.20 7027.2
TOTAL 66,656.00 59,628.80 7027.2
POSITIONS NO. OF EMPLOYEES MONTHLY SALARY Monthly Contribution ANNUAL CONTRIBUTION TOTAL ANNUAL CONTRIBUTION
Security Guard 2 14,640.00 7,320.00 292.80 292.80 3,513.60 3,513.60 7,027.20 7,027.20
Bookkeeper 1 20,000.00 20,000.00 400.00 400.00 400.00 400.00 800.00 800.00
Utility Worker 2 14,640.00 7,320.00 292.80 292.80 3,513.60 3,513.60 7,027.20 7,027.20
Delivery Man 2 14,640.00 7,320.00 292.80 292.80 3,513.60 3,513.60 7,027.20 7027.2
TOTAL 66,656.00 59,628.80 7027.2
Security Guard 2 14,893.80 7,539.60 297.88 297.88 3,574.51 3,574.51 7,149.02 7,149.02
Bookkeeper 1 20,000.00 20,000.00 400.00 400.00 400.00 400.00 800.00 800.00
Utility Worker 2 14,893.80 7,539.60 297.88 297.88 3,574.51 3,574.51 7,149.02 7,149.02
Delivery Man 2 14,893.80 7,539.60 297.88 297.88 3,574.51 3,574.51 7,149.02 7,149.02
TOTAL 71,983.71 64,834.69 7,149.02
Security Guard 2 14,893.80 7,539.60 297.88 297.88 3,574.51 3,574.51 7,149.02 7,149.02
Bookkeeper 1 20,000.00 20,000.00 400.00 400.00 400.00 400.00 800.00 800.00
Utility Worker 2 14,893.80 7,539.60 297.88 297.88 3,574.51 3,574.51 7,149.02 7,149.02
Delivery Man 2 14,893.80 7,539.60 297.88 297.88 3,574.51 3,574.51 7,149.02 7,149.02
TOTAL 71,983.71 64,834.69 7,149.02
Security Guard 2 15,340.61 7,765.79 306.81 306.81 3,681.75 3,681.75 7,363.49 7,363.49
Bookkeeper 1 20,000.00 20,000.00 400.00 400.00 400.00 400.00 800.00 800.00
Utility Worker 2 15,340.61 7,765.79 306.81 306.81 3,681.75 3,681.75 7,363.49 7,363.49
Delivery Man 2 15,340.61 7,765.79 306.81 306.81 3,681.75 3,681.75 7,363.49 7,363.49
TOTAL 77,551.35 70,187.85 7,363.49
SCHEDULE 30
13th Month Pay
2019 2020 2021 2022 2023
Production Worker 29,280.00 29,280.00 37,698.00 37,698.00 45,237.60
Security Guard 14,640.00 14,640.00 14,893.80 14,893.80 15,340.61
Project Engineer 28,000.00 28,000.00 28,840.00 28,840.00 29,705.20
Electrical Foreman 12,000.00 12,000.00 12,360.00 12,360.00 12,730.80
Accounting Staff 24,000.00 24,000.00 24,720.00 24,720.00 26,203.20
Delivery Man 14,640.00 14,640.00 14,893.80 14,893.80 15,340.61
Utility Worker 14,640.00 14,640.00 14,893.80 14,893.80 15,340.61
Total 137,200.00 137,200.00 148,299.40 148,299.40 159,898.64
SCHEDULE 31
Indirect Labor
2019 2020 2021 2022 2023
Security Guard
Annual Salary 175,680.00 175,680.00 180,950.40 180,950.40 186,378.91
Add: 13th Month Pay 14,640.00 14,640.00 14,893.80 14,893.80 15,340.61
Total Direct Labor 171,146.40 171,146.40 176,609.69 176,609.69 181,494.58
Project Engineer
Rate of Salary per day 1,400.00 1,400.00 1,442.00 1,442.00 1,485.26
Annual Salary 336,000.00 336,000.00 346,080.00 346,080.00 356,462.40
Add: 13th Month Pay 28,000.00 28,000.00 376.98 388.29 -
Total Labor 338,935.60 338,935.60 321,190.98 321,202.29 330,988.75
Electrical Foreman
Annual Salary 144,000.00 144,000.00 148,320.00 148,320.00 152,769.60
Add: 13th Month Pay 12,000.00 12,000.00 12,360.00 12,360.00 12,730.80
Total Labor 140,712.00 140,712.00 144,864.00 144,864.00 147,795.41
Accounting Staff
Annual Salary 288,000.00 288,000.00 296,640.00 296,640.00 305,539.20
Add: 13th Month Pay 12,000.00 12,000.00 12,360.00 12,360.00 12,730.80
Total Labor 284,712.00 284,712.00 293,184.00 293,184.00 302,365.01
Utility Worker
Annual Salary 175,680.00 175,680.00 180,950.40 180,950.40 186,378.91
Add: 13th Month Pay 14,640.00 14,640.00 14,893.80 14,893.80 15,340.61
Delivery Man
Annual Salary 175,680.00 175,680.00 180,950.40 180,950.40 186,378.91
Add: 13th Month Pay 14,640.00 14,640.00 14,893.80 14,893.80 15,340.61
Total Indirect Labor 1,277,798.80 1,277,798.80 1,289,068.05 1,289,068.05 1,325,632.90
Allocation: % applied to FOH

Electrical Foreman 100% 140,712.00 140,712.00 144,933.36 144,933.36 149,281.36
Project Engineer 100% 338,935.60 338,935.60 349,103.67 349,103.67 359,576.78
Accounting Staff 50% 142,356.00 142,356.00 146,626.68 146,626.68 151,025.48
Utility Worker 50% 85,573.20 85,573.20 88,140.40 88,140.40 90,784.61
Delivery Man 20% 34,229.28 34,229.28 35,256.16 35,256.16 36,313.84
Security Guard 100% 171,146.40 171,146.40 176,280.79 176,280.79 181,569.22
Total 912,952.48 912,952.48 940,341.05 940,341.05 968,551.29
SCHEDULE 32
Utilies Expense
2019 2020 2021 2022 2023
Electricity 120,000.00 123,600.00 127,308.00 131,127.24 135,061.06
Water 1,000.00 1,030.00 1,060.90 1,092.73 1,125.51
Telecommunications 13,188.00 13,583.64 13,991.15 14,410.88 14,843.21
TOTAL 134,188.00 138,213.64 142,360.05 146,630.85 151,029.78
Allocation:
Selling Expense 10% 13,418.80 13,821.36 14,236.00 14,663.09 15,102.98
Administrative Expense 30% 40,256.40 41,464.09 42,708.01 43,989.26 45,308.93
Factory Overhead 60% 80,512.80 82,928.18 85,416.03 87,978.51 90,617.87
Total 134,188.00 138,213.64 142,360.05 146,630.85 151,029.78
SCHEDULE 33
Accrued Utilities Expense
2019 2020 2021 2022 2023
Total Utilities Expense 134,188.00 138,213.64 142,360.05 146,630.85 151,029.78
Add: Accrued Utilities Expense Beg. 2,674.92 11,517.80 11,863.34 12,219.24
Total Annual Utilities Expense 134,188.00 140,888.56 153,877.85 158,494.19 163,249.01
Less: Payments
Prior Year 2,674.92 11,517.80 11,863.34 12,219.24
Current Year 123,005.67 126,695.84 130,496.71 134,411.61 138,443.96
Total Accrued Utilities Expense 2,674.92 11,517.80 11,863.34 12,219.24 12,585.81
SCHEDULE 34
Salaries Expense
2019 2020 2021 2022 2023
Administrative Expense
Accounting Staff 142,356.00 142,356.00 146,626.68 146,626.68 151,025.48
Utility Worker 85,573.20 85,573.20 88,140.40 88,140.40 90,784.61
Total 227,929.20 227,929.20 234,767.08 234,767.08 241,810.09
Selling Expense
Delivery Man 136,917.12 136,917.12 141,024.63 141,024.63 145,255.37
Total Salaries Expense 364,846.32 364,846.32 375,791.71 375,791.71 387,065.46
SCHEDULE 35
Rent Expense
2019 2020 2021 2022 2023
Monthly Rental 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00
Multiply by No. of Months 12 12 12 12 12
Total Rent Expense 540,000.00 540,000.00 540,000.00 540,000.00 540,000.00
Allocation:
Selling Expense 10% 54,000.00 54,000.00 54,000.00 54,000.00 54,000.00
Total 540,000.00 540,000.00 540,000.00 540,000.00 540,000.00
SCHEDULE 36
Accrued Rent Expense
2019 2020 2021 2022 2023
BEG. Accrued Rent Expense - 45,000.00 45,000.00 45,000.00 45,000.00
Annual Rent Expense 540,000.00 540,000.00 540,000.00 540,000.00 540,000.00
Total 540,000.00 585,000.00 585,000.00 585,000.00 585,000.00
Less:Payments During The Year 495,000.00 540,000.00 540,000.00 540,000.00 540,000.00
Accrued Rent Expense 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00
SCHEDULE 37
Accrued Salaries Expense
2019 2020 2021 2022 2023
Beg. Accrued Salaries and Wages - 30,403.86 60,807.72 92,123.70 123,439.67
Annual Salaries and Wages 364,846.32 364,846.32 375,791.71 375,791.71 387,065.46
Total 364,846.32 395,250.18 436,599.43 467,915.41 510,505.13
Less: Payments during the Year 334,442.46 334,442.46 344,475.73 344,475.73 354,810.01
Accrued Salaries and Wages expense 30,403.86 60,807.72 92,123.70 123,439.67 155,695.13
SCHEDULE 38
Permits and Licenses
2019 2020 2021 2022 2023
Barangay Clearance Fee 50.00 50.00 50.00 50.00 50.00
BIR Registration 500.00 500.00 500.00 500.00 500.00
Fire Safety Inspection Certificate 100.00 100.00 100.00 100.00 100.00
LTO Registration 500.00 500.00 500.00 500.00 500.00
Mayor's Business Permit 500.00 500.00 500.00 500.00 500.00
Notorial Fee 100.00
Police Clearance 100.00 100.00 100.00 100.00 100.00
SEC Application 800.00 800.00 800.00 800.00 800.00
Documentary Stamp 145.00
Health Certificate 100.00 100.00 100.00 100.00 100.00
Total 2,895.00 2,650.00 2,650.00 2,650.00 2,650.00
SCHEDULE 39
Miscellaneous Expense
2019 2020 2021 2022 2023
Broom 150.00 150.00 151.50 151.50 153.02
Rags 100.00 100.00 101.00 101.00 102.01
Garbage Can 500.00 500.00 505.00 505.00 510.05
Fire Extinguisher 5,000.00 - - - -
Pudlock 650.00 656.50 663.07 669.70 676.39
Switch 2,000.00 2,020.00 2,040.20 2,060.60 2,081.21
Alcohol 367.50 367.50 371.18 371.18 374.89
Trash Bags 295.00 295.00 297.95 297.95 300.93
Sponge 45.00 45.00 45.45 45.45 45.90
Floor Rag 450.00 450.00 454.50 454.50 459.05
Cleaning Detergent 147.00 147.00 148.47 148.47 149.95
Mop 567.00 567.00 572.67 572.67 578.40
Total 10,271.50 5,298.00 5,350.98 5,378.01 5,431.79
SCHEDULE 40
Interest Expense
2019 2020 2021 2022 2023
Bank Loan 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
Multiplied By Annual Interest Rate 0.13 0.13 0.13 0.13
Interest Expense 132,000.00 132,000.00 132,000.00 132,000.00
SCHEDULE 41
Accrued Interest Expense
2019 2020 2021 2022 2023
Interest Expense 132,000.00 132,000.00 132,000.00 132,000.00
Less: Payments during the Year 60,500.00 60,500.00 60,500.00 60,500.00
Accrued Interest Expense 71,500.00 71,500.00 71,500.00 71,500.00 -
SCHEDULE 42
Repairs and Maintenance
2019 2020 2021 2022 2023
Lights and Bulbs 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Delivery Van 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Piezoelectric Device 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00
Computer and Printer 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Total 13,000.00 13,000.00 13,000.00 13,000.00 13,000.00
Allocation
Selling Expense 40% 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00
Total 13,000.00 13,000.00 13,000.00 13,000.00 13,000.00
SCHEDULE 43
Depreciation Expense - Office Equipment
2019 2020 2021 2022 2023
Computer Set (2 sets) 23,398.00 18,718.40 14,038.80 9,359.20 4,679.60
Air Conditioner (2 sets) 36,596.00 29,276.80 21,957.60 14,638.40 7,319.20
Emergency Lights (5 sets) 3,995.00 3,196.00 2,397.00 1,598.00 799.00
Telephone (2 sets) 3,600.00 2,880.00 2,160.00 1,440.00 720.00
Total Book Value 67,589.00 54,071.20 40,553.40 27,035.60 13,517.80
Divided By: Remaining Useful Life 5 4 3 2 1
Depreciation Expense - Office Equipment13,517.80 13,517.80 13,517.80 13,517.80 13,517.80
SCHEDULE 44
Depreciation Expense - Office Furnitures and Fixtures
2019 2020 2021 2022 2023
Office Chair 5,250.00 4,200.00 3,150.00 2,100.00 1,050.00
Office Table 2,262.00 1,809.60 1,357.20 904.80 452.40
Steel Cabinet 4,800.00 3,840.00 2,880.00 1,920.00 960.00
3 Seater Gang Chair 10,800.00 8,640.00 6,480.00 4,320.00 2,160.00
Wall Clock 199.00 159.20 119.40 79.60 39.80
Total Book Value 23,311.00 18,648.80 13,986.60 9,324.40 4,662.20
Depreciation Expense - Office Furnitures and
4,662.20
Fixtures 4,662.20 4,662.20 4,662.20 4,662.20
SCHEDULE 45
Depreciation Expense - Leasehold Improvements
2019 2020 2021 2022 2023
Leasehold Improvements 58,509.00 46,807.20 35,105.40 23,403.60 11,701.80
Depreciation Expense - Leasehold Improvements
11,701.80 11,701.80 11,701.80 11,701.80 11,701.80
SCHEDULE 46
Depreciation Expense - Production Equipment
2019 2020 2021 2022 2023
Welding Machine (10 sets) 51,621.00 41,296.80 30,972.60 20,648.40 10,324.20
Soldering Iron (5 sets) 1,995.00 1,596.00 1,197.00 798.00 399.00
Voltage Regulator (5 sets) 3,500.00 2,800.00 2,100.00 1,400.00 700.00
Total Book Value 57,116.00 45,692.80 34,269.60 22,846.40 11,423.20
11,423.20 11,423.20 11,423.20 11,423.20 11,423.20
SCHEDULE 47
Depreciation Expense - Production Furniture and Fixtures
2019 2020 2021 2022 2023
Production Table 15,960.00 12,768.00 9,576.00 6,384.00 3,192.00
Production Chair 360.00 288.00 216.00 144.00 72.00
Industrial Fan 7,020.00 5,616.00 4,212.00 2,808.00 1,404.00
Wall Clock 199.00 159.20 119.40 79.60 39.80
Total Book Value 23,539.00 18,831.20 14,123.40 9,415.60 4,707.80
4,707.80 4,707.80 4,707.80 4,707.80 4,707.80
SCHEDULE 48
Depreciation Expense - Delivery Van
2019 2020 2021 2022 2023
Delivery Van 720,000.00 672,000.00 624,000.00 576,000.00 528,000.00
Depreciation Expense - Delivery Van 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
Allocation:
Selling Expense 90% 43,200.00 43,200.00 43,200.00 43,200.00 43,200.00
Total 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
SCHEDULE 49
Fuel Expense
2019 2020 2021 2022 2023
Liters Consumed 200.00 204.00 208.08 212.24 216.49
Yearly price per liter 45.00 46.00 47.00 48.00 49.00
Total 9,000.00 9,384.00 9,779.76 10,187.60 10,607.84
Allocation:
Selling Expense 90% 8,100.00 8,445.60 8,801.78 9,168.84 9,547.05
Factory Overhead 10% 900.00 938.40 977.98 1,018.76 1,060.78
Total 9,000.00 9,384.00 9,779.76 10,187.60 10,607.84
SCHEDULE 50
Office Supplies Expense
2019 2020 2021 2022 2023
Ballpen (5 pcs) 350 350 350 350 350
Columnar Notebook 49.75 49.75 49.75 49.75 49.75
Folder (3 pcs) 30 30 30 30 30
Bondpaper 360 360 360 360 360
Receipt (2 pcs) 866 866 866 866 866
Log Book 600 600 600 600 600
Masking Tape (5 pcs) 995.5 995.5 995.5 995.5 995.5
Staple Wire (3 pcs) 270 270 270 270 270
Marker (4 pcs.) 1140 1140 1140 1140 1140
Glue (3 pcs) 750 750 750 750 750
Calculator (3 pcs) 1284 1284 1284 1284 1284
Scissors (5 pcs.) 650 650 650 650 650
Ink for Printer 800 800 800 800 800
Total 8,145.25 8,145.25 8,145.25 8,145.25 8,145.25
SCHEDULE 51
Accrued SSS Contribution
2019 2020 2021 2022 2023
Total Annual Contribution 169,400.00 169,400.00 181,280.00 181,280.00 199,100.00
Add: Accrued SSS Contribution, Beg. - 28,636.67 28,636.67 30,231.67 30,231.67
Total 169,400.00 198,036.67 209,916.67 211,511.67 229,331.67
Less: Payments
Prior Year's Payments - 28,636.67 28,636.67 30,231.67 30,231.67
Current Year's Payments 140,763.33 140,763.33 151,048.33 151,048.33 167,383.33
Total Accrued SSS Contribution 28,636.67 28,636.67 30,231.67 30,231.67 31,716.67
SCHEDULE 52
Accrued PhilHealth Contribution
2019 2020 2021 2022 2023
Add: Accrued PhilHealth Contribution, Beg. - 6,941.67 6,941.67 7,141.67 7,141.67
Total 43,700.00 50,641.67 53,041.67 53,241.67 59,241.67
Less: Payments
Total Accrued PhilHealth Contribution 6,941.67 6,941.67 7,141.67 7,141.67 10,941.67
SCHEDULE 53
Accrued PAG-IBIG Contribution
2019 2020 2021 2022 2023
Add: Accrued Pag-Ibig Contribution, Beg. - 10,834.67 10,834.67 11,437.04 11,437.04
Total 66,656.00 77,490.67 82,818.38 83,420.75 88,988.39
Less: Payments
Total Accrued Pag-Ibig Contribution 10,834.67 10,834.67 11,437.04 11,437.04 12,390.47
SCHEDULE 54
Accounts Payable
2019 2020 2021 2022 2023
Accounts Payable, Beg. - 386,496.91 386,496.91 411,272.37 411,272.37
Credit Purchases 4,637,962.96 4,637,962.96 4,935,268.43 4,935,268.43 5,251,675.17
Total 4,637,962.96 5,024,459.87 5,321,765.34 5,346,540.80 5,662,947.54
Less:Payments During The Year 4,251,466.05 4,637,962.96 4,910,492.97 4,935,268.43 5,225,307.94
Accounts Payable,end. 386,496.91 386,496.91 411,272.37 411,272.37 437,639.60
SCHEDULE 56
Advertising Expense
2019 2020 2021 2022 2023
Information Drive 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Sample Unit For Advertising 52,000.00 53,560.00 55,166.80 56,821.80 58,526.46
Total Advertising Expense 64,000.00 65,560.00 67,166.80 68,821.80 70,526.46
SCHEDULE 57
Installation Expense
2019 2020 2021 2022 2023
Installation Expense 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
Multiply by no. of Months 12.00 12.00 12.00 12.00 12.00
Total 420,000.00 420,000.00 420,000.00 420,000.00 420,000.00
SCHEDULE 58
Operating Expenses
2019 2020 2021 2022 2023
Administrative Expenses
Utilities Expense 40,256.40 41,464.09 42,708.01 43,989.26 45,308.93
Salaries Expense 227,929.20 227,929.20 234,767.08 234,767.08 241,810.09
Retainer's Fee 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Doubtful Account Expense 6,942.33 3,361.64 1,544.26 449.68 1,679.30
13 Month Pay 137,200.00 137,200.00 148,299.40 148,299.40 159,898.64
Rent Expense 162,000.00 162,000.00 162,000.00 162,000.00 162,000.00
Permits and Licenses 2,895.00 2,650.00 2,650.00 2,650.00 2,650.00
Miscellaneous Expense 10,271.50 5,298.00 5,350.98 5,378.01 5,431.79
Office Supplies Expense 8,145.25 8,145.25 8,145.25 8,145.25 8,145.25
Repaires and Maintenance 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00
Depreciation Expense- Office Equipment 13,517.80 13,517.80 13,517.80 13,517.80 13,517.80
Depreciation Expense- Office Furnitures and Fixtures 4,662.20 4,662.20 4,662.20 4,662.20 4,662.20
Total Administrative Expense 639,019.68 631,428.18 648,844.98 649,058.68 670,304.01
Selling Expense
Utilities Expense 13,418.80 13,821.36 14,236.00 14,663.09 15,102.98
Salaries Expense 136,917.12 136,917.12 141,024.63 141,024.63 145,255.37
Rent Expense 54,000.00 54,000.00 54,000.00 54,000.00 54,000.00
Fuel Expense 8,100.00 8,445.60 8,801.78 9,168.84 9,547.05
Advertising Expense 64,000.00 65,560.00 67,166.80 68,821.80 70,526.46
Repaires and Maintenance 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00
Depreciation Expense- Delivery Van 43,200.00 43,200.00 43,200.00 43,200.00 43,200.00
SSS Contributions 19,800.00 19,800.00 19,800.00 19,800.00 21,120.00
PhilHealth Contributions 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00
Total Selling Expense 356,463.12 358,771.28 365,378.25 367,827.38 376,115.35
Total Administrative and Selling Expense 995,482.80 990,199.47 1,014,223.23 1,016,886.06 1,046,419.36
SCHEDULE 59
Accounts Receivable
2020 2021 2022 2023
Accouncts Receivable, Beg. 347,116.67 515,198.76 592,411.95 614,896.15
Credit Sales 6,182,385.07 7,108,943.38 7,378,753.86 8,386,335.42
Total Annual Accounts Receivable 6,529,501.74 7,624,142.14 7,971,165.81 9,001,231.57
Less: Receipt during the year 6,014,302.98 7,031,730.19 7,356,269.65 8,302,370.29
Accounts Receivable, End 515,198.76 592,411.95 614,896.15 698,861.28
SCHEDULE 60
Allowance For Doubtful Account Expense
2020 2021 2022 2023
Multiplied By: 2% Doubtful Account 2.00% 2.00% 2.00% 2.00%
Allowance For Doubtful Account Expense 10,303.98 11,848.24 12,297.92 13,977.23
SCHEDULE 61
Accounts Receivable-Net Realizable Value
2020 2021 2022 2023
Less: Allowance For Doubtful Accounts 10,303.98 11,848.24 12,297.92 13,977.23
Net Realizable Value 504,894.78 580,563.71 602,598.23 684,884.06
SCHEDULE 62
Cost of Good Sold
2019 2020 2021 2022 2023
Direct Materials 5,101,759.26 5,101,759.26 5,428,795.27 5,428,795.27 5,776,842.69
Direct Labor 342,292.80 342,292.80 441,876.48 441,876.48 545,244.84
Factory Overhead 2,191,642.72 2,197,822.08 2,251,998.29 2,258,554.01 2,322,384.09
Cost of Goods Manufactured 7,635,694.78 7,641,874.14 8,122,670.04 8,129,225.76 8,644,471.62
Beginning Inventory - 4,087,783.90 4,636,788.80 3,732,881.47 2,657,482.23
Total Goods Available for Sale 7,635,694.78 11,729,658.04 12,759,458.84 11,862,107.23 11,301,953.85
Less:Ending Inventory 4,087,783.90 4,636,788.80 3,732,881.47 2,657,482.23 -
Cost of Good Sold 3,547,910.88 7,092,869.23 9,026,577.37 9,204,625.00 11,301,953.85
SCHEDULE 63
Retainer's Fee
2020 2021 2022 2023
Bookkeeper 20,000.00 20,000.00 20,000.00 20,000.00
Multiply by No. of Months 1 1 1 1
Total 20,000.00 20,000.00 20,000.00 20,000.00
SCHEDULE 64
VAT Payable
2020 2021 2022 2023
Output Tax
Output Tax From Sales 808,910.20 930,142.12 965,444.43 1,093,467.54
Less: Input Tax
Direct Materials 603,733.44 642,705.32 642,705.32 683,930.65
Indirect Materials 345.00 472.77 472.77 611.08
Input Tax 604,078.44 643,178.09 643,178.09 684,541.73
Annual VAT Payable 204,831.76 286,964.03 322,266.34 408,925.81
Add: Accrued VAT, beg -4,922.74 16,659.08 25,301.93 28,964.02
Total 199,909.02 303,623.12 347,568.27 437,889.84
Less:Payments 183,249.93 278,321.19 318,604.24 401,399.02
Accrued VAT Payable, end 16,659.08 25,301.93 28,964.02 36,490.82
SCHEDULE 65
Accrued Witholding Tax
2020 2021 2022 2023
Beginning Witholding Tax 2,250.00 2,250.00 2,250.00 2,250.00
Annual Rent 540,000.00 540,000.00 540,000.00 540,000.00
Multiply By:Witholding Tax Rate 0.05 0.05 0.05 0.05
Witholding Tax 27,000.00 27,000.00 27,000.00 27,000.00
Less:Payments 24,750.00 24,750.00 24,750.00 24,750.00
Accrued Witholding Tax 2,250.00 2,250.00 2,250.00 2,250.00
SCHEDULE 66
Total Accruals Expense
2020 2021 2022 2023
Accrued Salaries and Wages expense 60,807.72 92,123.70 123,439.67 155,695.13
Accrued VAT Expense 16,659.08 25,301.93 28,964.02 36,490.82
ACCRUED UTILITIES EXPENSE 11,517.80 11,863.34 12,219.24 12,585.81
ACCRUED RENT EXPENSE 45,000.00 45,000.00 45,000.00 45,000.00
Accrued Witholding Tax 2,250.00 2,250.00 2,250.00 2,250.00
Accrued SSS Contribution Expense 28,636.67 30,231.67 30,231.67 31,716.67
ACCRUED PHILHEALTH CONTRIBUTION Expense 6,941.67 7,141.67 7,141.67 10,941.67
Accrued Pag-Ibig Contribution Expense 10,834.67 11,437.04 11,437.04 12,390.47
Total Accruals 182,647.62 225,349.34 260,683.31 307,070.57
SCHEDULE 67
Uncollectible Account Expense
2020 2021 2022 2023
Allowance For Doubtful Account Expense,end 10,303.98 11,848.24 12,297.92 13,977.23
Less: Beg. Balance 6,942.33 10,303.98 11,848.24 12,297.92
Uncollectible Account Expense 3,361.64 1,544.26 449.68 1,679.30
SCHEDULE 68
Income Tax Expense
2020 2021 2022 2023
Income Before Tax 4,281,701.43 4,177,086.16 4,535,996.66 4,366,059.19
Less: Income Bracket 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Excess of Bracket 2,281,701.43 2,177,086.16 2,535,996.66 2,366,059.19
Multiply Tax Rate 0.32 0.32 0.32 0.32
Total Tax Due 730,144.46 696,667.57 811,518.93 757,138.94
Add: Basic Tax Due 490,000.00 490,000.00 490,000.00 490,000.00
Income Tax Expense 1,220,144.46 1,186,667.57 1,301,518.93 1,247,138.94
Financial Statement Analysis
Financial statements are reports of a company’s financial results, financial
conditional, and cash flows. These statements are necessary for the company to
determine its ability to generate cash and to know its capability to pay back its debt.
Also, it is important to track financial results on a trend line to recognize any
pending profitability issues.
It helps investors decide whether or not to invest their funds in a particular
company. This analysis is a quantifying method for the company to know its
performance over a specific period.
Liquidity Ratios
These ratios measure the ability and efficiency of a firm to generate cash
out of its short-term assets to pay off currently maturing obligations.
Current Ratio
Formula:
Current Ratio = Current Assets/ Current Liabilities
Table 19
Current Ratio
2019 2020 2021 2022 2023
Current Assets 8,439,144.45 11,834,200.02 14,960,175.54 18,441,414.49 21,679,149.83
Divided By:
Current Liabilities 1,565,363.29 1,805,948.08 1,848,591.21 2,002,438.64 2,028,657.43
Current Ratio 5.39 6.55 8.09 9.21 10.69
The high current ratios suggest that the business has an increase proportion
of current assets to current liabilities. It indicates that the company will have
enough current assets to pay off currently maturing obligations.

Solvency Ratios
These ratios measure the ability of the business to generate cash out of its
assets to pay current and long-term obligations.
Debt Ratio
Formula: Debt Ratio= Total liabilities/ Total Assets
Table 20
Debt Ratio
2019 2020 2021 2022 2023
Total Liabilities 1,565,363.29 1,805,948.08 1,848,591.21 2,002,438.64 2,028,657.43
Divided By:
Total Asset 9,290,799.65 12,592,941.42 15,626,003.14 19,014,328.29 22,159,149.83
The debt ratio is also a measure of leverage because it measures how much
of the total assets are finance by debt which magnifies earnings. It means that the
business has a very low chance of being insolvent or defaulting on its obligations
because small portion of assets is required to repay liabilities.
Equity Ratio
Formula: Equity Ratio = Total Owner’s Equity/Total Assets

Table 22
Equity Ratio
2019 2020 2021 2022 2023
Total Equity 7,725,436.37 10,786,993.34 13,777,411.93 17,011,889.66 20,130,809.91
Divided By:
Total Asset 9,290,799.65 12,592,941.42 15,626,003.14 19,014,328.29 22,159,149.83
Equity Ratio 0.83 0.86 0.88 0.89 0.91
The equity ratio is a complement to the debt ratio. The high equity ratios
increased proportions of the total assets comes from the owner’s capital, which
does not have contractually stipulated maturities that will necessitate cash
operations. Then again, the high extent of value recommends that lone a little
portion of the aggregate resources is financed by obligation. Consequently,
business has a lower than normal danger of bankruptcy.

Net Profit Ratio
Table 23
Net Profit Ratio
2019 2020 2021 2022 2023
Net Profit 2,725,436.37 3,061,556.98 2,990,418.59 3,234,477.73 3,118,920.25
Divided By:
Net Sales 4,782,889.22 5,271,900.90 5,191,309.39 5,552,882.72 5,412,478.55
Net Profit Ratio 0.57 0.58 0.58 0.58 0.58
Based on the results, given above the business showed an increasing
positive ratio due to the profits earned from its operations.
Return on Investment
Table 24
Return on Investment
2019 2020 2021 2022 2023
Net Income 2,725,436.37 3,061,556.98 2,990,418.59 3,234,477.73 3,118,920.25
Divided By:
Total Asset 9,290,799.65 12,592,941.42 15,626,003.14 19,014,328.29 22,159,149.83
Return on Investment 0.29 0.24 0.19 0.17 0.14
The table shows a decreasing ROI, this is because the owners’ have large
amount of investment over the net income of the company. Thus, creating a
decreasing amount. Nevertheless, the company is still profitable and ideal.
Return on Equity
Table 25
Return on Equity
2019 2020 2021 2022 2023
Net Income 2,725,436.37 3,061,556.98 2,990,418.59 3,234,477.73 3,118,920.25
Divided By:
Average Equity 6,362,718.18 9,256,214.85 12,282,202.64 15,394,650.80 18,571,349.78
Return on Equity 0.43 0.33 0.24 0.21 0.17
The return on equity measures the amount earned on the owner’s investment.
It is an important indication of the firm’s profitability because it determines how well
the company of the company is performing with the investment contributed by its
owners.
Return on Total Assets
Table 26
Return on Total Assets
2019 2020 2021 2022 2023
Net Income 2,725,436.37 3,061,556.98 2,990,418.59 3,234,477.73 3,118,920.25
Add:Income Tax 1,061,970.05 1,220,144.46 1,186,667.57 1,301,518.93 1,247,138.94
Total 3,787,406.42 4,281,701.43 4,177,086.16 4,535,996.66 4,366,059.19
Divided By:
Average Total Assets 9,290,799.65 10,941,870.53 14,109,472.28 17,320,165.72 20,586,739.06
Return on Total Assets 0.41 0.39 0.30 0.26 0.21
Return on total assets is a measure of operating efficiency. It indicates how
well the firm’s management has used the assets under its control to generate
income.
Contribution Margin Ratio
Table 27
Contribution Margin Ratio
2019 2020 2021 2022 2023
Total Sales 8,330,800.10 12,364,770.14 14,217,886.76 14,757,507.72 16,714,432.40
Less:Variable Cost 1,274,654.58 1,277,985.87 1,332,664.56 1,336,301.81 1,400,771.10
Contribution Margin 7,056,145.52 11,086,784.26 12,885,222.21 13,421,205.90 15,313,661.30
Divided By:
Total Sales 8,330,800.10 12,364,770.14 14,217,886.76 14,757,507.72 16,714,432.40
Contribution Margin Ratio 0.85 0.90 0.91 0.91 0.92
The ratios show favorable results. It means that the company is effective in
minimizing its variable cost. Since the ratio is increasing, the company may create
programs or activities which will increase its sales.
Break-even Point in Peso
Table 28
Breakeven Point In Peso
2019 2020 2021 2022 2023
Fixed Cost 902,746.60 905,200.38 907,727.81 910,331.07 913,012.45
Divided By:
Contribution Margin Ratio 0.85 0.90 0.91 0.91 0.92
BEP in Peso 1,065,822.90 1,009,543.83 1,001,610.29 1,000,969.50 996,527.52
Based on the results, the proposed business must not generate revenue below
the amounts above to avoid loss. It also shows that the business will not incur profit
or loss when reaches the amounts.
Contribution Margin per Units

Table 29
Contribution Margin Per Units
2019 2020 2021 2022 2023
Divided By:
Selling Price 51,744.10 53,296.42 54,895.32 56,542.18 58,238.44
Contribution Margin Per Units 136.37 208.02 234.72 237.37 262.95
Break-even Point in Units

Table 30
Breakeven Point In Units
2019 2020 2021 2022 2023
Fixed Cost 902,746.60 905,200.38 907,727.81 910,331.07 913,012.45
Divided By:
Contribution Margin Per Units 136.37 208.02 234.72 237.37 262.95
BEP in Units 6,620.02 4,351.48 3,867.22 3,835.13 3,472.22
Sensitivity Analysis
Sensitivity analysis is a technique useful for the business in identifying which
instance the business is very sensitive or in what independent variable change
does the business is greatly affected. It determines the impact it gives to the
business when a particular variable is changed systematically from previous
assumptions. Through sensitivity analysis, the proponents will be able to determine
how changes in one variable affect the target variable and the business.
Certain actions should be considered when the project sensitive to the value
of a variable that is uncertain. It can include project level action like long-term
supply contracts, sector level actions like price changes or national level actions
like the change in tax. The project may have to be redesigned or implemented first
on the initial basis when there is exceptional uncertainty.
Listed below are the scenarios assumed that might happen during a
business endeavor.
Scenario 1
Piezo Industries
2019 2020 2021 2022 2023
Sales 8,080,876.10 11,993,827.03 13,791,350.16 14,314,782.49 16,212,999.43
Less: Cost of Goods Sold 3,966,278.07 7,136,334.41 8,575,710.91 8,714,678.38 10,313,902.27
Less: Operating Expense 989,750.84 984,295.55 1,008,142.19 1,010,622.59 1,039,967.99
Less:Income Tax Expense 929,926.78 1,171,881.11 1,292,904.05 1,416,496.97 1,536,495.70
Net Income 2,194,920.40 2,701,315.96 2,914,593.01 3,172,984.54 3,322,633.47
Scenario 2
Piezo Industries
2019 2020 2021 2022 2023
Sales 8,330,800.10 12,364,770.14 14,217,886.76 14,757,507.72 16,714,432.40
Less: Operating Expense 1,029,340.88 1,023,667.37 1,048,467.88 1,051,047.50 1,081,566.71
Net Income 2,246,603.25 2,662,865.13 2,864,473.14 3,124,476.30 3,259,030.49
Scenario 3
Piezo Industries
2019 2020 2021 2022 2023
Sales 8,080,876.10 11,993,827.03 13,791,350.16 14,314,782.49 16,212,999.43
Less: Operating Expense 1,029,340.88 1,023,667.37 1,048,467.88 1,051,047.50 1,081,566.71
Net Income 1,996,679.25 2,279,840.77 2,424,607.63 2,667,148.01 2,741,757.36
Table 31. Comparative Analysis - Net Income

2019 2020 2021 2022 2023
Normal 2,725,436.37 3,061,556.98 2,990,418.59 3,234,477.73 3,118,920.25
Scenario 1 2,194,920.40 2,701,315.96 2,914,593.01 3,172,984.54 3,322,633.47
Scenario 2 2,246,603.25 2,662,865.13 2,864,473.14 3,124,476.30 3,259,030.49
Scenario 3 1,996,679.25 2,279,840.77 2,424,607.63 2,667,148.01 2,741,757.36
Table 32. Comparative Analysis - Return on Investment

2019 2020 2021 2022 2023
Normal 0.29 0.24 0.19 0.17 0.14
Scenario 1 0.24 0.21 0.19 0.17 0.15
Scenario 2 0.24 0.21 0.18 0.16 0.15
Scenario 3 0.21 0.18 0.16 0.14 0.12
Table 33. Comparative Analysis - Return on Equity

2019 2020 2021 2022 2023
Normal 0.35 0.28 0.22 0.19 0.15
Scenario 1 0.28 0.25 0.21 0.19 0.17
Scenario 2 0.29 0.25 0.21 0.18 0.16
Scenario 3 0.26 0.21 0.18 0.16 0.14
Table 34. Comparative Analysis - BEP in Peso

2019 2020 2021 2022 2023
Normal 1,065,822.90 1,009,543.83 1,001,610.29 1,000,969.50 996,527.52
Scenario 1 1,071,811.05 1,013,155.82 1,004,824.46 1,004,061.38 999,026.68
Scenario 2 1,116,523.57 1,054,789.05 1,046,002.05 1,045,170.84 1,039,849.82
Scenario 3 1,177,261.59 1,106,598.45 1,096,387.94 1,095,194.37 1,088,918.29
Table 35. Comparative Analysis - BEP in Units

2019 2020 2021 2022 2023
Normal 6,620.02 4,351.48 3,867.22 3,835.13 3,472.22
Scenario 1 6,863.10 4,502.11 3,999.62 3,965.96 3,576.13
Scenario 2 6,934.93 4,546.50 4,038.62 4,004.49 3,610.59
Scenario 3 7,538.33 4,917.34 4,364.08 4,325.92 3,897.90
S o c i o - E c o n o m i c D e s i r a b i l i t y | 141
CHAPTER VIII
SOCIO-ECONOMIC DESIRABILITY
Every business venture has the primary purpose of attaining profit from their
economic endeavors. Despite this, they cannot go away with the fact that they
operate in the social environment. This aspect discusses in sufficient detail the
responsibilities and relationship of the business towards the community within
which it operates.
Government
The government is the chine of every society. Without its regulations,
businesses would cease to flourish. However, in order to efficiently impose its
bylaw, it needs a fund – which is provided by its constituents.
Establishing a business benefits, the government in many ways. For
starters, a business effectuates income and part of which is forwarded to the
government as tax. This means that more funds would be effectuated by the
government. Additional funds may help the government in assisting its ongoing
projects or for generating new ones through which the people's welfare will be
given more emphasis.
Economic
The study will benefit the economy in terms of implementing an alternative
source of electricity because it will make use of the waste energy created by
vehicular pressure which will then be converted into electricity that powers street
lights. The business will lessen the cost of using the accustomed electricity; it also
utilizes waste energy. The demand ability of the alternative waste energy
S o c i o - E c o n o m i c D e s i r a b i l i t y | 142
converter, Piezoelectricity, means a greater need of every commuter because it
gives them the assurance of having street lights in some curvy road in the
Municipality of Barili, Cebu, and could somehow give them safety in passing along
in the said area. With this kind of business in the market, the awareness of the
people will increase on how important a street light is.

S W O T A n a l y s i s | 143
CHAPTER IX
STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS
Each business has their own weakness and strengths that could convey an
advantage or disadvantage in the entire business. However, a strategic analysis is
further considered to separate or concede the company from these uncertainties.
SWOT is a strategic planning tool used to evaluate the strengths,
weaknesses, opportunities, and threats to a project and this is a common
framework for developing marketing strategy. It includes a specific objective of the
business or project and distinguishing the internal and external factors that are
favorable or unfavorable to achieving the objective. It helps in judging the feasibility
of an idea or company and assists the business how to make schemes in
formulating decisions that enhances strengths, changing threats to opportunities,
and transforming the weaknesses to strengths.
The goal of the SWOT analysis is to develop the best strategies and tactics
to achieve the desired objective of the company. It produces new ideas to help
take advantage of an organization’s strengths and defends against threats. It
evaluates the internal potential and limitations and the probable/likely opportunities
and threats from the external environment.

Figure29
SWOT Matrix of the Proposed Project
STRENGTHS WEAKNESSES
 Serves as an alternative  Product capacity life span
energy  Costly
 Recycles waste energy
 Government - friendly product
OPPORTUNITIES THREATS
 Can compete globally  Occurrence of competition
 Develop product users and  Price war among other
buyers alternatives
 Battery might be prone to
stealing.
Figure 30
Conversion of Weaknesses to Strengths and Threats to Opportunities
STRENGTHS WEAKNESSES
 Having substantial advertisements  New and unestablished
 Contract and purchase to reputation
suppliers  Costly
OPPORTUNITIES THREATS
 Uphold competitiveness  Occurrence of competition
 Purchase from direct suppliers  Price war among alternatives
 Battery might be prone to
stealing.
The succeeding paragraphs present the evaluation and analyses of the
factors affected in the SWOT matrix.
To convert Weaknesses to Strengths:
 The new and unestablished product reputation can be converted into a
strength through substantial advertisements and providing an exceptional
quality of service to the customers to encourage them to frequently acquire
our product. This also helps in building a good name in the business.
 Higher cost of the materials is one of the reasons why a certain product is
expensive. To avoid higher cost in the materials, the proponents should
contract and purchase directly from the suppliers.
To convert Threats to Opportunities:
 Occurrence of new competition is one of the most common threats
especially to new introduced products. The best way to convert this into an
opportunity is to uphold the competitiveness of the product.
 To avoid competition among prices, the appropriate way is through
purchasing directly from the suppliers and not from retailers. With this,
cheapest price on the product is guaranteed. So it would be affordable to
prospect clients.
To match the Strength to Opportunity and Vice Versa
 Since this can be an alternative in supplying electricity and it could be
possibly implemented internationally, thus this can compete globally.
People will be interested and acquire this alternative source of electricity
and therefore there will be an increase in demand and increase in sales.
 There is an environmental impact and it reutilizes waste energy. These
strengths can give a big opportunity that environmentalists would approve
the project.
 This would give a wide and broad opportunity to a global competitive
market. In which, if accepted, the global market would give chance to this
kind of product in the market. Creating a new traffic not just in the market
but also in the environmental impact.

S u m m a r y , F i n d i n g s , C o n c l u s i o n s , a n d R e c o m m e n d a t i o n s | 147
CHAPTER X
SUMMARY, FINDINGS, CONCLUSION, AND RECOMMENDATIONS
The purpose of the study is to determine the viability and feasibility of the
Proposed Study of Piezoelectricity that powers Street Lights in the Municipality of
Barili. Several parts of this study were carefully made to specifically answer the
following:
1. Is the proposed project feasible in terms of the following aspects?
1.1 Technical
1.2 Marketing
1.3 Management
1.4 Financing
1.5 Legal and Taxation Aspect
1.6 Financial
1.7 Socio-Economic Desirability
1.8 Strengths, Weaknesses, Opportunities, and Threats
2. Based on the findings, what recommendation may be proposed for the
project?
FINDINGS
The researchers have found out the project is capable of being implemented
because of its feasibility, viability, and profitability. The following supports the data
of the researchers in each aspect.

Technical Aspect
The proposed business is the production of Peizoelectricity the Powers
Streetlights of the Municipality of Barili. The production processes are the
Installation process, and working process that includes the prototyping and the
installation on the specific area of the chosen area. The proposed production site
for the distribution will be the Municipality of Barili. The proposed project can
produce one (1) device in a day with 3-4 production workers. In a year, there will
be 240 working days leading to the production capacity of 240 units in a year.
Marketing Aspect
The intended target market of the study will be the LGUs of the Province of
Cebu. The proponents believe that the LGUs has the power to purchase and
implement this device into their areas. There will be majors marketing strategy that
is considered by the proponents and these are the product offer with the LGU and
advertising. In this strategy, LGU and citizens may acquire knowledge about the
product and it’s use and effects, since the product is new to the public. The
importance and impact of the study has reached to 93.21% in which the more
streetlights that an area can provide the lesser the number of accidents might be.
Moreover, the demand and supply of the product is equal, since the market
share has become 0% because the market share of CEBECO as the only provider
of electricity that lights the streetlights has a range of .0341%. The demand of the
device will depend on the area of municipality. Demand for five (5) years are 161
(Barili), 232 (Ronda and Ginatilan), 259 (Alegria and Malabuyoc), 261(Moalboal
and Samboan) and 288 (Dumanjug and Badian), respectively. The business will
be expanding to other LGUs adding one (1) municipality throughout the 5 years.
Management Aspect
The proposed business will be in a form of partnership. The partnership
accomplishes the Articles of Partnership that is submitted to SEC as an official
registry of the partnership. In addition, the proponents have come to segregate
conflict duties to protect the business from risks that may lead to losses.
In this chapter, it was mentioned that in this partnership all of them will act as
a managing partner. The employees, they will receive benefits as provided in the
Labor Code of the Philippines, such as SSS, PAG-IBIG, PhilHealth, and a 13th
Month Pay.
Legal and Taxation Aspect
Legal requirements are compiled before the commencement of the business
operation. The proposed project will be registered to the Security Exchange
Commission, Department of Labor and Employee, Land Transportation Office and
Bureau of Internal Revenue. For the benefits of its employees, the proposed
project will have its registration in the Social Security System, Philippine Health
Insurance, and PAG-IBIG. Licenses and permits such as a Business Permit,
Barangay Clearance, Police Clearance, Sanitary Permit, Fire Safety Inspection
Certificate, Community Tax Certificate, Electrical Permit, Water Installation Permit
and Certificate of Occupancy should also be secured. The proposed project will be
subject to a Value-Added Tax of 12% of its sales.

Financing Aspect
The proposed business requires an estimated project cost of Php
1,773,554.75. It consists of Pre-operating expenses amounting of Php 12,860.00;
Improvements and Equipment of Php 944,569.00; Working Capital of Php
816,125.25. This will be finance by the investment of each partners the proponents
had decided.
Financial Aspect
The net income of the proposed business for the first five years are Php
2,857,479.64; Php 3,073,576.58; Php 2,844,195.39; Php 3,075,690.50; Php
2,782,043.00. The Return on Equity (ROE) for five years are 44%, 33%, 23%,
20%, 15%, respectively. The payback period of the proposed project is said to be
five years. On the other hand, the Break-even Sales in units of the proposed
business from the year 2019 to 2023 is as
follows: 6,620.02; 4,351.48; 3,867.22; 3,835.13; 3,472.22; The Break- Even sales
in Pesos for the first five consecutive years is as follows: Php 1,065,822.90; Php
1,009,543.83; Php 1,001,610.29; Php 1,000,969.50; Php996,527.22; respectively.
Socio-Economic Desirability
The benefit of the proposed project is not just limited to the implementer
but also to the social and economic aspect of the society. This would help the
government to generate income because of the taxes being paid. It will cause
sudden halt of operations, nonetheless, the implementation of the device will lead
to economic supremacy.
This would also uplift the current status of our economy. Innovations like this,
with high impact to the environment and the people will make the place known to
everyone. It will make the area globally competitive when it comes to production
of renewable energy and environmental awareness in coping up changes of
technology that would badly affect the society.
SWOT Analysis
The identified strengths of the proposed project are as follows; serve as an
alternative for the production of electricity, has an environmental impact, recycles
waste energy, and conserves the environment by eliminating other impacts.
However, there are weaknesses with this proposed project and these are; new to
the market, unestablished, and costly when it comes to the acquisition of the
product.
Moreover, there are opportunities open for this project. It can compete globally
when proved to be feasible, and develop new product users and buyers. But there
will also be threats such as occurrence of competition and price war among
alternatives and with the commercial energy.
CONCLUSION
Based on the data gathered, the proposed project is profitable and feasible
in all aspects. The proposed project will generate an increasing profit during the
first five years of the operations.
RECOMMENDATIONS
On the light of the findings, the proponents recommend that the proposed
project be implemented. However, the proponents further commend that the

prospective implementer should carry out the following course of actions to
address the limitations of the project and to attain full potential of the proposed
business.
1. The business venture must focus on the strength of the product and its
purpose to create a firm foundation of goodwill.
2. Since the business is expanding to the other municipalities there must have
an exact data and background of the municipality, because every
municipality has difference from one another.
3. The business venture must increase the production capacity and upgrade
their tools and equipment for it to supply the existing demand for the
municipalities.
4. For the marketing, survey questions must be different from the other
questions from the other municipality to gather correct information and data
because of the differences of the municipality.
5. The business venture should have a bank account for its investments for it
to be monitored and at least have an interest income.
6. The business venture must find a smaller area of production to save more,
since the proposed production site is bigger for the production.
7. The external users or those who wishes to improve this study might look
into the capacity of the Piezo and how much pressure it can take.
8. The weight of each vehicle that passes by and by instance if ever happen,
the untoward events that may cause the ineffectively and inefficiency of the
product.
9. The inadequate source of information regarding to the installation’s cost
and the repair maintenance are accurately assumed by the proponents with
the help of its engineering adviser.
10. The proponents wishes to inform all the external users that an information
is still in process of experimentation and hypothesis. Any efforts applied are
duly recognized by the proponents.

BIBLIOGRAPHY
https://www.sss.gov.ph/sss/DownloadContent?fileName=SSSForm_EC_Medi
cal_Reimbursement.pdf
https://www.citiworks.com.ph/sites/default/files/files/Sickness%20reimbursem
ent%20B-304.pdf
http://www.formsphilippines.com/view/343/affidavit-of-separation-from-employ
ment
https://www.sss.gov.ph/sss/DownloadContent?fileName=SSSForm_EC_Clai
m_Temp_Disability_Sickness.pdf
http://www.bulacanchamber.ph/images/downloads/DTI-%20Business%20Na
me%20Registration%20Form.PDF
https://www.bir.gov.ph/images/bir_files/old_files/pdf/20361901pg1.pdf
https://www.sss.gov.ph/sss/DownloadContent?fileName=SSSForms_ER_Reg
istration.pdf
http://www.natashalh.com/how-to-make-your-own-custom-paper-straws-great-
for-diy-weddings-and-holidays/
https://www.bir.gov.ph/index.php/tax-information/percentage-tax.html
https://psa.gov.ph/content/cebu-city
https://www.mandauecity.gov.ph/about
https://www.bir.gov.ph/images/bir_files/old_files/pdf/20511902.pdf
http://payrollhero.ph/13th_month
https://www.dole.gov.ph/files/LA%20012-13.pdf
http://www.pagibigfund.gov.ph/benpromembership.aspx
https://www.paychex.com/articles/employee-benefits/employee-benefits-a-co
mpany-must-provide
http://www.philstar.com/news-feature/2014/11/17/1392783/faqs-mandatory-13
th-month-pay
http://mpm.ph/register-a-sole-proprietor-business/
APPENDICES
Regino Brendion Ursal
Mobile Number: 0942-975-1766
Email Address: ursalregino@gmail.com
Address: 264 G., Gorordo Ave., Lahug, Cebu City

Birthdate: April 20, 1998
Birthplace: Cebu City
Age: 19
Civil Status: Single
Religion: Roman Catholic
EDUCATIONAL BACKGROUND
Tertiary: University of San Jose-Recoletos

Magallanes, St., Cebu City
Bachelor of Science in Management Accounting
Secondary: Cebu Mary Immaculate College

D. Jakosalem St., Cebu City
Primary: Lahug Elementary School

Lahug, Cebu City
Affiliation: Junior Philippine Institute of Accountants
Motto: “Early bird catches the early worm”

Icyle Clein Ferrer
Email Address: leinferrer97@gmail.com
Address: R. Duterte St., Banawa, Cebu City

Birthdate: June 15, 1997
Birthplace: Navotas Metro Manila
Age: 20

Secondary: St. Peter Academy of Alegria, Inc

Alegria, Cebu
Primary: Saved by Grace Learning Center

Suba, Cebu City
Motto: “Success cannot be spelled with U”

Charity Calisang
Email Address: chatrinksss@gmail.com
Address: Sitio Sto. Nino, Lower Inayawan, Cebu City

Birthdate: April 18, 1998
Age: 19

Secondary: St. Paul College Foundation, Inc.

Bulacao, Pardo, Cebu City
Primary: Inayawan Elementary School

Inayawan, Cebu City
Affiliation: Junior Jaycees – USJ-R
Junior Philippine Institute of Accountants
Motto: “Live life without regrets”

Lyxen Fano
Email Address: fanolyxen15@gmail.com
Address: Upper Greenhills, San Fernando, Cebu

Birthdate: September 7, 1997
Birthplace: Quezon City
Age: 20

Secondary: Sangat National High-School

Sangat, San Fernando, Cebu
Primary: Saay Elementary School

Saay, Can-asujan, Carcar, Cebu
Motto: “He who doesn’t know how to suffer will not achieve success and
happiness”
Janine Joyce Cortes
Email Address: janineeninee@gmail.com
Address: 80-A, R. Duterte St., Banawa, Cebu City

Birthdate: November 5, 1997
Age: 20

Secondary: Our Lady of the Pillar Academy

Poblacion, Sibonga, Cebu
Primary: Golden Success College Inc.

Guadalupe, Cebu City
Affiliation: Junior Jaycees – USJ-R
Junior Philippine Institute of Accountants
Motto: “You will, because you can”

A Proposed Production of Piezoelectricity in The Municipality of Barili

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“A PROPOSED PRODUCTION OF PIEZOELECTRICITY IN THE

A Project Feasibility Presented to

The Faculty of the College of Commerce

University of San Jose – Recoletos

Cebu City, Philippines

Of the Requirements for the Degree

BACHELOR OF SCIENCE IN MANAGEMENT ACCOUNTING

CHARITY CALISANG JANINE JOYCE CORTES

LYXEN FANO ICYLE CLEIN FERRER

REGINO BRENDION URSAL

This Project Feasibility Study entitled “A Proposed Production of

MS. MERADEL COSTAN, CPA

ACCEPTED as partial fulfillment of the requirements for the Degree of Bachelor

DR. EDGAR R. DETOYA, CPA

MS. JASMINE PEREZ, CPA, CTT

MRS. CRISTINA FLORABEL LIM, MMBM

MS. KRISTINE JUNE UY, CPA, CAT, MBA

To Ms. Meradel Costan, CPA, the researchers’ adviser for her

encouragement, guidance, and her expertise which facilitated the completion of

various suggestions and supervisions that helped the researchers to be equipped

with knowledge and determination.

their both financial and emotional support.

To Engr. Reynaldo Ruedas, and some of the proponents’ engineering

To the respondents who willingly spare their time in answering our

questionnaires for the execution of this study.

To whose people who in one way or another, have contributed to the

been part in this project will be forever cherished.

difficult times which contributed to the completion of the study.

accomplishing and fulfilling the study.

REGINO BRENDION URSAL

ICYLE CLEIN FERRER

JANINE JOYCE CORTES

The relentless growth of modern technology and the advances of human

cognitive creates an opportunity to each individual to scheme possible solutions

to major problems that exists as far as humans can remember.

Determined to draw on with great innovation, researchers and other

knowledgeable individuals come up with energy harvesting. Energy Harvesting is

The proponents of the study conducted a research about the accidents

Piezoelectricity is a type of energy harvesting system in which waste

but it is unknown in the Philippines. As of now, the researchers from different

is capable of generating enough electricity that can light up two to three

Any suggestions and recommendations are accepted wholeheartedly for the

benefit of the mass majority.

CHAPTER PAGE NO.

I THE PROBLEM AND ITS SCOPE 1

Rationale of the Study 1

STATEMENT OF THE PROBLEM 2

SIGNIFICANCE OF THE STUDY 3

Research Methodology and Instruments 6

Limitation of the Study 7

TOOLS, MACHINERIES AND EQUIPMENT 20

PRODUCTION SCHEDULE/ CAPACITY 22

PRODUCTION FLOOR PLAN 26

WASTE DISPOSAL MANAGEMENT 26

III MARKETING ASPECT 28

PROJECTED ANNUAL SUPPLY 38

PROJECTED MARKET SHARE 39

MANAGEMENT DURING THE PRE-OPERATING PERIOD 45

MANAGEMENT DURING THE OPERATING PERIOD 48

Form of Business Organization 49

Job Titles and Description 50

Violations and Sanctions 60

V LEGAL AND TAXATION ASPECTS 61