EXECUTIVE SUMMARY

NAME OF THE ENTERPRISE

The business enterprise was named CCB Enterprise. The name of the enterprise is a

combination of the initial letters of the main ingredients of the product it offers: “Carrot”,

“Coconut”, and “Banana”. The purpose of getting just the initials is to lift curiosity of the

market. It will become an advantage in marketing the product.

LOCATION OF THE ENTERPRISE

The enterprise is located at 28 Upper Brookside, Baguio City. It would be an advantage to the

enterprise because it is near the town proper, schools and retail stores. Thus, it there would be a

higher possibility of gaining a lot of customers.

LOGO

ENTERPRISE
MISSION AND VISION

Vision

We envision CCB Enterprise to be the nation’s leading shop by providing the finest as

well as a healthy product that will be enjoyed by consumers in any occasion.

1
 Mission

To be a recognized and desired producer of healthy products and to inspire a healthy

lifestyle to consumers

PROJECT POTENTIAL AND PROPONENTS

Nowadays, people are becoming more conscious of their health. People in our generation

are looking for ways to improve their lifestyle – from working out to eating the right kinds of

food. The people in our generation would buy products that would give them satisfaction and

happiness as well as nutrition. This is why we believe in CacobaPastillas and the satisfaction and

nutrients that it will provide to its consumers. Also, the proponents know that Filipinos loves

eating sweets. Pastillas is a kind of confectionery well-known and loved by many Filipinos.

Carrots, coconuts and bananas are used as the main ingredients for they are known for

their individual remarkable benefits. CCB Enterprise will give the market an innovation of both

fruits and vegetable. Carrots are a good source of several vitamins and minerals, especially

vitamin A, biotin, vitamin K, potassium and vitamin B6. Some health benefits of carrots include

reduced cholesterol, lower risk of heart attacks, prevention of certain cancers, improved vision,

and reduced signs of premature aging. Coconuts are highly nutritious and rich in fiber, vitamins

C, E, B1, B3, B5 and B6 and minerals. It helps promote heart health and lower the risk of heart

disease. Bananas have high fiber content, can provide ease in digestion, high source of potassium

and help fights anemia among other things.

The proponents of this study are Kumar Israel Pascual, Justin Sombrito, Shane Dicang,

RomeleiDumaguin, and VhernadetteMones.

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PROJECTS LONG RANGE OBJECTIVES

This shows how the enterprise envisions itself in the future and how the enterprise will bring

such into reality. The objectives of CCB Enterprise for the next ten years are as follows:

 To be one of the bestsellers of delicious and healthy product in Baguio City by providing

the best quality to the customers.

 CCB Enterprise would have sold their product through consignment in different

supermarkets, mini marts, and retail stores in Baguio City and to be able to sell in nearby

provinces like La Union and Pangasinan.

 The enterprise would have its own plantation for carrots, coconuts and bananas in

Baguio, Benguet.

 The enterprise would provide employment to people who would want to work with is in

achieving our goals.

FEASIBILITY CRITERIA

Profit is the primary goal of putting up a business; it is about having a return on

investment. But it is not only about that, it is also about the talent and the passion for making

something and providing customers what they demand for. Nowadays, the food market is

competitive that suppliers become more and more creative. Though every business is established

mainly for profit, there are a lot of factors to be considered including creativity. The society, the

economy and specially the environment must also be considered. The question then would be the

contribution of the business to the given areas, would it be positive or would it be detrimental.

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HIGHLIGHTS OF THE PROJECT

I. HISTORY OF THE ENTERPRISE

The proponents once decided to have a business. The choice was to either have

a service business or a manufacturing business. The proponents went for the

manufacturing business. There were several product suggestions and the proponents

tried to make some of those suggestions. After some trial and error and after

considering various factors they agreed on having a pastillas. As to the flavor, some

of the favourite sweet flavours were mixed considering their content as well. Carrot,

Coconut and Banana were then chosen to be the mixed flavours for the suggested

pastillas. A survey through questionnaires was then floated to determine whether the

residents in the city of Baguio would like to avail of the CacobaPastillas if it will be

introduced in the market. After making estimations, computations and analysis,

manufacturing of CacobaPastillas will result to a profit. Inspired by the research, the

proponents decided to push through with manufacturing CacobaPastillas.

II. NATURE OFTHE BUSINESS

CCB Enterprise is a manufacturing business. Its main product is the

CacobaPastillas. The proponents’ aims to meet the demand of customers for pastillas

while providing them with health benefits as well. The main ingredient of the main

product offers various health benefits. The management are also in charge of the

distribution and advertising of the product. It will be distributed to local groceries,

food stalls in the public market and to small and medium enterprises in the different

4
 barangays in the city. It will be advertised through the use of flyers and through

advertisements using social media accounts.

III. LOCATION OF THE ENTERPRISE

The business enterprise would be housed at one of the proponents’ residence

instead of renting a space or constructing a new building. This would save the

enterprise on rent expense or cost of constructing a new building. The area would

provide a high possibility of customers since it is near school premises and is also

near the town proper where a lot of retail stores are located.

IV. MODE OF FINANCING

The primary source of capital would come from the individual contributions of

the proponents. The total contributed capital would be used to finance the whole

beginning process of putting up the enterprise like improving the manufacturing area,

purchasing the tools and equipments and also the raw materials, processing of

business permits, advertising and other initial business processes.

V. INVESTMENT COST

The initial capital needed by the enterprise to start its operations is P765,890.18.

This amount is allocated for the first year of operation. The total initial investment

from the five proponents amounted to P962,500, P600,000 cash investment and

P362,500 worth of land and building.

5
MAJOR ASSUMPTIONS AND SUMMARY OF THE PROJECT

MARKET FEASIBILITY

This aspect of the study is focused on the market side of the product. It is the part of the

study which will tell whether or not to continue. It will show whether or not the business will be

able to penetrate the market.

The CCB enterprise aims to cater the residents of Baguio City especially the individuals

aged five to sixty. Pastillas is not uncommon the public. The difference of the common pastillas

in the market with our product CacobaPastillas is the integration of three healthy ingredients

namely: Carrot, Coconut and Banana. The pastillas innovation of CCB Enterprise is nutritious

dessert. It is a ball pen sized pastillas which has soft texture, fragrant smell, and convenient to

eat.

The analysis of the demand and supply is the vital part of this aspect of the study. The

sample size was computed using the Slovin’s formula. The data needed was gathered through the

use of survey method. The propronents floated questionnaire to the residents of Baguio City.

Based on the data gathered, there is an expected favorable projected demand and favorable

projected supply. However, there is still an unsatisfied demand of 2,886,786.24, 2,998,533.71,

3,135,709.02, 3,297,927.97, and 3,484,778.72 for the years 2019, 2020, 2021, 2022 and 2023

respectively. The price of the product is based on the cost of production which amounted to P4.

The price was computed through multiplying the cost of production to 100% plus the mark-up of

50%. There are also factors that can affect the supply and the demand. The factors that can affect

the demand include the price, the population growth, tastes and preferences and others. The

factors that can affect the supply include the cost of production, the number of competitors and

6
the state of technology. The aforementioned factors affected the market share for each of the

products for the respective years of 2019 to 2023 which are as follows: 11.60422%, 11.17176%,

10.68304%, 10.15756%, and 9.61292%. As for the market promotion, the product will be

advertised through flyers and through social media.

TECHNICAL FEASIBILITY

CCB Enterprise will be located at Upper Brookside, Baguio City near school premises

and near the town proper where a lot of retail stores are found. . Production will start an hour

earlier at 7:00 am until 4:00 pm. It would be an 8 hours working period with one hour lunch

break. The display area which also serves as a little store would be open from 8:00 am to 5:00

pm. The enterprise’s annual normal capacity computed is 33,630 packs of cacobapastillas. The

normal capacity per day is 112 packs of pastillas. Based on normal capacity, 16 production hours

are used per day by both the production manager and the hired employee and a total of 6.53

batches of cacobapastillas are produced. While based on actual capacity, only 6 batches are

produced due to the difference in the production hours used. The enterprise occupies an area of

18 square meters. The technical study also includes the list of equipment, tools and supplies that

will be used in the enterprise along with the floor layout, size and production schedules.The total

project cost amounts to ₱ 765,890.18 which is inclusive of the costs of manufacturing

equipment, furniture and fixtures, supplies, tools, rent, organizational costs, production costs and

other necessary expenses. Financing will be coming from cash contributions from the partners.

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FINANCIAL FEASIBILITY

This study will discuss the detailed information on project cost, initial requirements,

financial statements, income statements, financial analysis and the sources of finance of the

feasibility study. Based on the financial projections of the enterprise, the net income on the first

year amounts to P363,262.27and P386,781.09, P420,452.63, P457,933.68and P497,818.77 for

2020, 2021, 2022 and 2023, respectively.

The ratios of the enterprises such as liquidity, efficiency, leverage and profitability ratio,

indicates that CCB Enterprise is very liquid and has the ability to meet its current obligations,

and is financially stable and that the operation s of the business will be able to continue without

the need for debt financing. It also shows a projected positive result on the overall performance

and efficiency of the enterprise. For its payback period, CCB enterprise will be able to recover its

invested fund gradually for the first two years and completely for third year of its operations

(2.39 years).

SOCIO-ECONOMIC FEASIBILITY

This part of the study shows the impact of the establishment of CCB enterprise to the

economy, government, society and to the community. It was said that CCB enterprise primary

goal isn’t profit maximization but customer’s wealth maximization, wealth not in a way of

giving dividends but offering healthy snacks for almost every one especially in Baguio City

where the enterprise is located and operating. The enterprise is expected to earn income and will

pay the right amount of income tax to the government. Since it is business, the enterprise is also

subject to business tax, and will also remit the right amount to the government. Paying right

taxes would help the government to increase its income or fund for the development of our

8
country. Job opportunity will also be open to the community especially to those unemployed

individual. Offering a product that is not just delicious but also a healthy snack. Usage of plastics

will be lessen, as much as possible zero usage, because the enterprise will use Paper Pastillas

Wrapper in the packaging of CacobaPastillas.

MANAGEMENT FEASIBILITY

Effective and efficient management is necessary for a business to survive in a

competitive market. CCB Enterprise will be ran by five (5) partners, two (2) of them will act as

Manager, one (1) as delivery personnel, (1) as production staff and another one (1) as an

accountant of the firm. The enterprise will hire one (1) personnel, a resident of Baguio City that

will accompany the partner assigned to production of CacobaPastillas. CCB Enterprise adopts a

general partnership setup of organization because it is not a complex form of organization

compared to a corporation. Profits will be divided equally as agreed by all the partners.

ACCOUNTING INFORMATION SYSTEM

Accounting information systems collect and process transaction data which then are turned into

financial information for decision makers. All businesses whether small or large need to collect

and process their financial data because such is essential in the business organization.  The

various forms and documents needed are also included for the enterprise to aid its accounting

system. The accounting information aspect includes the different cycles in the business as well as

internal controls deemed necessary in the communication of information. Having an effective

accounting information system would help in delivering informative and accurate data in the

production of various financial statements for the users.

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 MARKET STUDY

INTRODUCTION

This chapter includes the detailed discussion of our product. It includes its name,

properties, uses, major users, and geographical areas of dispersion. This chapter also includes the

discussion and analysis of the demand and supply, the price study, the factors affecting the

market, and the marketing program. The analysis of the demand and supply will show the

potential of the product in the market.

Product Description

Name of the Product

The name of our product is “CacobaPastillas”. Cacoba is a shortened word for the three

of the main ingredient of our product namely: Carrot, Coconut and Banana. The proponents of

this study chose “CacobaPastillas” as the name of the product for the reason that it is shorter to

pronounce and easier for the consumer to remember.

Properties of the Product

CacobaPastillas is a healthy food primarily made up of carrot, coconut, banana, powdered

milk and condensed milk. The color of the product is brownish orange. Its texture is soft since it

is cooked. It is shaped like a ball pen which weighs 15 grams and wrapped in a pastillas paper

wrapper.

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 Carrots are rich in antioxidant compounds. It is an excellent source of beta carotene,

alpha-carotene, pythochemicals, lutein, hydroxycinnamic acids, polyacetylenes, biotin, vitamin

K, dietary fiber, molybdenum, potassium, vitamin B6, vitamin C, manganese, vitamin B3,

vitamin B1, panthothenic acid, phosphorus, folate, copper, vitamin E and vitamin B2.

Coconuts are rich in fiber, manganese, potassium, copper, medium chain fatty acid which

helps to boost metabolism and to aid in fat loss, vitamin B and antioxidant compounds.

Bananas are rich in fiber, antioxidants compounds, potassium, kaempferol, quercetin,

rutin, dopamine, serotonin, vitamin B6 and vitamin A.

Uses of the Product

CacobaPastillas is a healthy and nutritious food. Consumers can eat it as a snack, as a

dessert after meals and as a “pasalubong” to their families and friends.

Major Users of the Product

The major users of our product are the individuals with the age of five (5) to sixty (60) in

Baguio City. Considering our target market, the primary users of our product will be the

students and working individuals in Baguio City.

Geographical Areas of Dispersion

Our product will be distributed around the City of Baguio. If the business will be

successful in Baguio City, we will also distribute our product to the neighboring towns.The

product will be distributed to retail stores, school canteens, sweet treats retailers in the city public

market, and pasalubong centers in the city.

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Demand

Demand for a product is influenced by various factors such as price and population growth.

It is very significant in determining the potential of the business in the market. The analysis of

the demand will show the data whether the individuals in Baguio City particularly our target

market will be able and willing to purchase our product.

In coming up with a proper analysis of the demand in Baguio, the proponents floated

questionnaires in different places in Baguio and it enable the proponents to know if there is a

demand for the product. The computation of the total demand is important because it will enable

the proponents to assess the viability of the project in relation to the economy.

Analysis of Demand

1. Population

Research population is a large collection of individuals that have similar characteristics. It

is the data we used to get the sample size, which is a subset of a population or the representative

of the population.

Table 1: Historical Population

YEAR POPULATION
2014 283,200
2015 287,561
2016 291,990
2017 296,487
2018 301,053

Table 1 shows the Baguio City’s historical population of people with the age of five to

sixty (5-60) for the years 2014 to 2018. The basis of population used was gathered from the

Philippine Statistics Authority. The data above were gathered through the use of population

12
growth rate method. The population of Baguio City with the age of five to sixty was 287,561

during the year of 2015. The population growth rate of Baguio City which is 1.54% was used. It

was gathered from the data provided by the Philippine Statistics Authority.

2. Projected Population

Statistical parabolic method of projection was used in projecting the demand. The reason

of the researcher in using the said method in projecting the demand is that it gives the least

standard deviation as compared with other projection methods. Low standard deviation is more

reliable than high standard deviation that is why the method with least standard deviation was

chosen.

3. Sampling Population

Sample size is the representative of the population. Slovin’s formula was used to derive

the sample size. It was computed as follows:

Slovin’s Formula

N Where:
n=
1+[ ( N ) ( e2 ) ] n= sample size
N= total population of Baguio City
e2= margin of error

301,053
Sample size (n)= = 399.47≈400
1+[ ( 301,053 ) ( 0.052 ) ]

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Questions and Results

1. Do you eat pastillas?

Table 2: Number of Respondents who Eat Pastillas

RESPONSES NO. OF RESPONDENTS PERCENTAGE

YES 379 94.75%
NO 21 5.25%
TOTAL 400 100%

Table 2 shows the number of respondents who eat pastillas. The enterprise would like to

know the number of respondents who eat pastillas to know whether or not they can potentially

enter the market with high consumers of pastillas. The data shows that out of 400 respondents,

379 or 94.75% are eating pastillas while the other 21or 5.25% do not eat pastillas. With the data

results, it is expected that Cacoba Enterprise shall be able to penetrate the market.

2. How often do you usually eat pastillas?

Table 3: Frequency of Consumption of Pastillas

RESPONSES NO. OF RESPONSES PERCENTAGE

Once a week 90 23.75%
Twice a week 73 19.26%
Twice a month 54 14.25%
Once a month 158 41.69%
Once a year 4 1.06%
TOTAL 379 100%

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 Table 2 shows the frequency of consumption of pastillas. Based on the gathered data

through survey, it shows that the respondents often consume pastillas monthly. Out of the 379

respondents who are eating pastillas, 90 or 23.75 % consume pastillas weekly, 73 or 19.26%

consume pastillas twice a week, 54 or 14.25% consume pastillas twice a month, 158 or 41.69%

consume pastillas monthly and other 4 or 1.06% of the respondents consume pastillas yearly.

3. What size of pastillas you usually buy?

Table 4: Consumption of Pastillas according to Size

Size Total Percentage

Cube size (8 grams) 178 46.97%
Ballpen Size (15 grams) 201 53.03%
Total 379 100%
Table 4 shows the consumption of passtillas according to size. Out of 379 respondents,

178 or 46.97% consume cube-sized (8 grams) pastillas while the other 201 or 46.79% consume

ballpen-sized (15 grams) pastillas. Therefore, the enterprise will focus on the most consumed

size of pastillas which is based from the results, the ballpen size which weighs 15 grams.

4. How many pastillas you usually buy?

Table 5: Consumption Quantity of Pastillas

QUANTITY RESPONSES PERCENTAGE

1 100 26.39%
2 87 22.96%
3 78 20.58%
4 40 10.55%
5 74 19.53%
TOTAL 379 100%

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 Table 5 shows the consumption of pastillas according to its quantity. Out of 379

respondents, 100 or 26.39% usually consume 1 piece of pastillas, 87 or 22.96% usually consume

2 pieces, 78 or 20.58% usually consume 3 pieces, 40 or 10.55% usually consume 4 pieces, and

the other 74 or 19.53% usually consume 5 pieces. Based on the results, it shows that the most of

the respondents consume only 1 piece of pastillas.

Table 6: Consumption of Pastillas according to Size and Quantity

Size   Respondents Percentage Total Percentage

1 38 10.03%
2 36 9.50%
Cube size
3 37 9.76% 178 46.97%
(8 grams)
4 18 4.75%
5 49 12.93%
1 62 16.36%
2 51 13.46%
Ballpen Size
3 41 10.82% 201 53.03%
(15 grams)
4 22 5.80%
5 25 6.60%
Total 379 100.00% 379 100%

Table 6 shows the summary of consumption of pastillas according to size and quantity.

Based on the results, it shows that most of the respondents consume 1 piece of ball pen-sized

pastillas.

5. If we are to introduce CacobaPastillas in the market, will you be willing to buy?

Table 7: Frequency of Willing Buyers of CacobaPastillas

RESPONSES NO. OF RESPONDENTS PERCENTAGE

YES 362 90.50%

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 NO 38 9.50%
TOTAL 400 100%

Table 7 shows the willingness of the respondents to buy our product, Cacobapastillas.

Based on the results, out of 400 respondents, 362 or 90.50% are willing to purchase the product.

However, the other 38 or 9.50% of the respondents refuse or do not want to purchase our

product. Nonetheless, it resulted to high favorable responses. Therefore, the enterprise can

potentially enter the market.

Table 8: Cross Tabulation for Consumption

Quantity Total
Frequency
1 2 3 4 5
Cube Size (8g)
Once a week 5 8 11 8 10 42
Twice a week 8 11 12 0 1 32
Twice a month 9 7 6 4 3 29
Once a month 16 10 8 6 33 73
Others: Once a
year 0 0 0 0 2 2
SUBTOTAL 38 36 37 18 49 178
Ballpen Size (15g)
Once a week 12 15 11 3 7 48
Twice a week 8 8 10 6 9 41
Twice a month 4 12 9   0 25
Once a month 38 16 10 13 8 85
Others: Once a
0 0 1 0 1 2
year
SUBTOTAL 62 51 41 22 25 201
79TOTAL 100 87 78 40 74 3

Table 8 shows the cross tabulation for consumption. It shows the how many they are

consuming at what size and how often they are consuming pastillas.It shows that most of the

respondents consume 1 piece ball pen-sized pastillas monthly

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 Table 9: Annualized Cross Tabulation (in grams) for Consumption

Quantity Total
Frequency
1 2 3 4 5
Cube Size (8g)
Once a week 2,080 6,656 13,728 13,312 20,800 56,576
Twice a week 6,656 18,304 29,952 0 4,160 59,072
Twice a month 1,728 2,688 3,456 3,072 2,880 13,824
Once a month 1,536 1,920 2,304 2,304 15,840 23,904
Others: Once a year 0 0 0 0 80 80
SUBTOTAL 12,000 29,568 49,440 18,688 43,760 153,456
Ballpen Size (15g)
Once a week 9,360 23,400 25,740 9,360 27,300 95,160
Twice a week 6,656 13,312 24,960 19,968 37,440 102,336
Twice a month 1,440 8,640 9,720 0 0 19,800
Once a month 6,840 5,760 5,400 9,360 7,200 34,560
Others: Once a year 0 0 45 0 75 120
SUBTOTAL 24,296 51,112 65,820 38,688 71,940 251,856
GRAND TOTAL 25,832 53,032 68,124 40,992 87,780 275,760

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 Table 9 shows the annualized consumption of passtillas in grams. The data were derived

through multiplying the quantity to the grams and then to frequency of consuming pastillas.

Based on the results, 275, 760 is the annualized consumption in grams. It will be used in getting

the consumption rate that will be used in getting the historical demand of pastillas.

Table 10: Consumption Rate

Total annualized consumption in

grams 251,856
Divide by: Most consumed size in grams 15
Annualized Consumption in pieces 16,790
Divide by: Number of respondents who are eating pastillas 379
Annual Average Consumption (in pieces) 44
Divide by: Number of Pieces per pack 10
Annual Average Consumption (in packs) 4

Table 11: Historical Demand

Historical Demand
Yea Percentage of Consumption Historical Demand
Population
r Consumption Rate (in packs)
201
4 283,200 94.75% 4 1,188,760
201
5 287,561 94.75% 4 1,207,066
201
6 291,990 94.75% 4 1,225,657
201
7 296,487 94.75% 4 1,244,534
201
8 301,053 94.75% 4 1,263,700
Table 11 shows the historical demand for pastillas. The data were the results of the

computation made. In order to get the historical demand, the population was multiplied to the

percentage of consumption and then to the consumption rate. The percentage of consumption is

the percentage of the respondents who consume pastillas.

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 Table 12: Actual Projected Demand

Year A B X Bx c X² Cx² Projected Demand

2019 1,225,657 18,735 3 56,204 143 9 1,290 1,283,151

2020 1,225,657 18,735 4 74,939 143 16 2,293 1,302,889

2021 1,225,657 18,735 5 93,674 143 25 3,583 1,322,913

2022 1,225,657 18,735 6 112,408 143 36 5,159 1,343,225

2023 1,225,657 18,735 7 131,143 143 49 7,023 1,363,823

Table 12 shows the computation of projected demand. Statistical parabolic method was

used in projecting the demand. It was used for the reason that it yields the lowest standard

deviation which means that it is more reliable to use. To get the projected demand, the formula

a+bx+cx² should be used.

Table 13: Standard Deviation of Different Projection Method Used

Method Standard Deviation

Arithmetic Straight Line 373.77
Arithmetic Geometric Curve 0.89
Statistical Straight Line 239.82
Statistical Parabolic Curve 0.63

Table 13 shows the standard deviation for every projection method. Arithmetic Straight

Line Method yields the highest standard deviation while the Statistical Parabolic Curve Method

yields the lowest standard deviation. Therefore, Statistical Parabolic Curve Method was used as

it is more reliable.

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Supply

Data shown on this section was gathered through simple interviews to indirect

competitors. The proponents interviewed indirect competitors because CCB Enterprise is the

only enterprise that produces such pastilas. The proponents did not use questionnaire to avoid

interruption of the interviewee’s operation.

Table 14: Annualized Supply (in grams) Data Table

Competito Weekly sales Ball pen size (in (%) Annualized Supply (in
r packs) increase/decrease packs)

A 105 5% 5,460
B 144 8% 7,508
C 625 10% 32,500
D 375 10% 19,500
E 25 0% 1,300
F 62.5 4% 3,250
G 250 10% 13,000
Total 18,465 47% 82,518

The data on table 14 that is used to summarize annualized supply of pastillas was given

by the suppliers in good faith through interviews by the proponents.

Supply percentage rate is computed by getting the average change of total change in

sales. Percentage rate is computed as follows:

Total change 47%

Divide: No. of respondents 7
Supply Percentage Rate 6.71%

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 Table 15: Historical Supply

Year Historical Supply (in packs)

2014 63,629.11
2015 67,901.34
2016 72,460.44
2017 77,325.64
2018 82,517.50

The table 14 shows the historical supply of pastillas that is based on the information

gathered by the proponents through simple interview to suppliers of pastillas. The supplies from

previous years are computed by dividing the succeeding year by 106.71%.

Table 16: Unsatisfied Demand

Year Demand per pack Supply per pack Unsatisfied Demand

2019 1,283,151 88,054.42 1,195,096.49
2020 1,302,889 93,962.88 1,208,925.99
2021 1,322,913 100,267.79 1,222,645.67
2022 1,343,225 106,995.75 1,236,228.93
2023 1,363,823 114,175.17 1,249,647.38

Projected supply was projected using Arithmetic Geometric Curve. This method was

used because among the four methods in projecting, arithmetic geometric curve has the smallest

standard deviation of 0.44, thus this method will result the best estimates of projections.

Unsatisfied demand shows how much will be the deficiency of the market of pastillas on

the projected demand of consumers of pastillas.

Table 17: Arithmetic Geometric Curve

Value Increase
Current / (Y-
Year Year (Y) decrease Yi+1 1+r Yc (Y-Yc) Yc)^2
2014 - 106.71 104.50

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 63,629.11 67,909.53 % 63,639.33 (10.22)
106.71
2015 67,901.34 6.71% 72,466.26 % 67,909.53 (8.18) 66.94
106.71
2016 72,460.44 6.71% 77,328.74 % 72,466.26 (5.82) 33.88
106.71
2017 77,325.64 6.71% 82,517.50 % 77,328.74 (3.11) 9.64

2018 82,517.50 6.71%          

Total 26.86%
Divide 4
Average - r 6.71%

Table 18: Supply Projected Values

Year (Yi-1) (1+r) Projected Values Yc

2019 82,517.50 106.71% 88,054.42
2020 88,054.42 106.71% 93,962.88
2021 93,962.88 106.71% 100,267.79
2022 100,267.79 106.71% 106,995.75
2023 106,995.75 106.71% 114,175.17

Table 18 shows the computation of projected supply. Arithmetic Geometric Curve

method was used in projecting the Supply. It was used for the reason that it yields the lowest

standard deviation which means that it is more reliable to use.

Table 19: Standard Deviation of Different Projection Method Used

Method Standard Deviation

Arithmetic Straight Line 399.66
Arithmetic Geometric Curve 0.44
Statistical Straight Line 256.48
Statistical Parabolic Curve 5.63

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 Table 19 shows the standard deviation for every projection method. Arithmetic Straight

Line Method yields the highest standard deviation while the Arithmetic Geometric Curve

Method yields the lowest standard deviation. Therefore, Arithmetic Geometric Curve Method

was used as it is more reliable.

Table 20: Market Share

Year Full Capacity in packs Unsatisfied Demand Market Share

2019 33,630 1,195,096.49 2.81400%
2020 33,966 1,208,925.99 2.80963%
2021 34,306 1,222,645.67 2.80588%
2022 34,649 1,236,228.93 2.80280%
2023 34,996 1,249,647.38 2.80043%

The table above shows the market share of CCB Enterprise. The market share represents

the percentage of an industry’s total sales that is earned by an entity over a specified time period.

PRICE STUDY

Price is the amount of money that is used to buy goods or services. Production cost must be taken

into account in setting the cost of the product plus its mark-up to arrive at the price of the product. These

production costs are direct and indirect materials, labor and overheads attributable to the production of

product. The setting of the prices of the products must to be considered because it has an inverse effect on

the demand of the product. If price increases, the demand for the product will decrease, vice versa. The

selling price of other competitors ranges from 5 to 8 pesos per piece of ball pen size pastillas. The price of

CacobaPastillas will be 97% based on production cost. The price will be subject to adjustment every year

depending on the demand of the product.

24
 Direct Material (P545,997 / 336,000 pcs/year) P1.62

Direct Labor (P85,500 / 336,000pcs/yr) 0.26

Factory Overhead 0.76

Product Unit Cost P 2.64

Mark-up (70%) 70%

Selling Price (P4.5 * 10 pcs/pack) P 45

FACTORS AFFECTING THE MARKET

1. Price

When prices increase, demand tends to decrease especially when substitutes are present

in the market. Different prices generate different market demands. The prices are probable for

adjustments based on the amount of goods that they will be availing. Since our selling price is

based on cost of product rendered plus the mark-up. The price we are going to impose on the

consumers would depend basically on how much is it in the market. CacobaPastillas envisions

giving the customers affordable yet quality and healthy treat.

2. Population growth

The number of buyers and consumers in the market is a factor that would change the total

market demand of our product. Due to the increase rate of the population in Baguio City, there

will be a high demand of the product. This would also mean that consumers will look forward to

varieties of food. In connection to this, the researchers will produce quantity that satisfies the

demand.

25
3. Existence of Alternative Products

The demand for the product will also be affected by the alternatives present in the market.

Alternative or substitute goods are goods which can be used in place of another. There are many

competitors that can be of a challenge to the enterprise by introducing a product which can be a

substitute for the existing products.

In order for the enterprise to cope with this existence of alternative products, the

enterprise will make sure that it has a competitive advantage towards against the competitors.

The enterprise will make sure to produce quality products through using fresh ingredients, using

quality materials and putting sufficient ingredients.

4. Promotion and Awareness

Promotion and awareness is one of the important factors in order to have a demand for

the product. It is a tool in gaining customers and a factor in making the business a successful one.

The enterprise should be able to use an immense way of advertising in order to affect the

consumer’s desire to purchase the product. The enterprise will use flyers and social media to

promote and make the public aware of the product since it is new to the market. The enterprise

will use social media as it is the modern way of promoting a product and it can cover a wider

scope of consumers.

5. Taste and Preferences

Consumers’ tastes and preferences vary from time to time which results in consumers

finding a product that will satisfy their needs and wants. With the constant change of tastes and

26
preferences, the enterprise should produce a quality product that will make the consumer want to

buy it again and to advertise it themselves through word of mouth advertisement.

FACTORS AFFECTING SUPPLY

1. Cost of production

The cost of production is the accumulation of all cost that was used in the production. It

is also the amount in which the enterprise can sell its goods without having a loss. An increase in

the prices of the inputs will decrease the supply of production inputs which will result to a lower

production which will also result to lower profits. On the other hand, if there’s a decrease in the

cost of production inputs, there will be a greater supply which will result to a higher production

of goods and higher profit.

2. Number of Competitors

Generally, competing suppliers are always present to the market. This competition in the

market has direct effect on the production and selling of the product due to possible decrease in

the demand of an entity’s product because a lot of the same product is present in the market. The

more competitors, the lesser the buyers of product, and the lesser competitors, the more buyers of

the product being sold.

Due to many competitors in the market, the proponents innovate a kind of pastillas that

has not been sold or produced by anyone. To catch the attention of the consumers, the

proponents produced healthy pastillas that will separate it from any other pastillas sold in the

market. The business will have an image to the consumers that CCB Enterprise is producing not

just delicious but also healthy snacks.

27
3. State of Technology

Technology is a big factor in production of a product. Adapting to changing technology

can affect positively to the production of the enterprise. Its production cost and expenses can be

lesser (example: free advertisement through social media) thus, increasing the gross profit and

net income of the entity. Technology helps the suppliers to increase supply to the market, on the

other hand outdated technology can widely affect the supplier like increase in production cost

MARKETING PROGRAM

1. Product

CacobaPastillas could be sold per piece or per pack depending on what the consumer

wants, each pack contains 10 pieces of the product. It is best to consume after meal as a dessert.

It is best served when chilled.

2. Price

CacobaPastillas’ price is based on the cost incurred in the production plus mark-up at

50% based on production cost. Demand is considered in setting the price of the product due to its

inverse relationship with the price. Setting too high price will decrease demand from the

consumers.

3. Place

CCB Enterprise is located at 28 Upper Brookside, Baguio City. The house was

contributed by one of the partner. It became an advantage to the enterprise because there will be

no need of renting a space. Thus, it enables the enterprise to have a savings. The location is also

near the town proper and near to school premises which will provide a high possibility of

customers.

28
4. Promotions

 Social Media

Using social media to promote and advertise the product is one of the most

effective ways for the consumers to know what Cacobapastillas is. Almost everyone has

an access on social media therefore there’s a big possibility of consumers knowing about

the product. In addition, advertising in social media, especially Facebook, is free of any

charge.

 Flyers

Floating flyers might be traditional way to advertise a product but it is still helpful

to reach the consumers and inform them what is CacobaPastillas, where to buy them and

what are the health benefits of it. Flyer will be given to random people passing by on their

way to their destination. This method is also helpful for those people who are not fond of

using social media to

know the product.

Facebook page

29
 Flyers

FOR SALE
CACOBA PASTILLAS
(CArrots, COconut, and BAnana)
30
WHERE:
28 Upper Brookside, Baguio City

CONTACT US
 09358593969 (GLOBE)

TECHNICAL STUDY

INTRODUCTION

This study includes the brief description of the product, manufacturing process, plant size

and production schedule, machineries and equipment that will be needed and raw materials and

supplies to be used in the making of the product. It also includes the plant location and plant lay

out of the area. Services by the public, orderly waste disposal and labor requirements are also

discussed in this chapter. The estimated costs to be incurred in the production and in the project

were also mentioned. These things are taken into consideration in creating and introducing a new

product.

This is of great importance because it gives in-depth description of the product, the

suitable location for production, its layout and design, and the manufacturing process. This part

of the study also determines the total production cost of the product.

A. THE PRODUCT

Carrot, banana and coconut are the main ingredients of the Cacoba (Carrot, Coconut and

Banana Pastillas). It is mixed with condensed milk, powdered milk, butter and white sugar. The

31
product is brown orange in color and it comes in a ballpen size. It is wrapped individually in a

white pastillas paper.

B. MANUFACTURING PROCESS

THE MANUFATURING PROCESS

Preparation of ingredients and materials needed. (5 mins)

Slicing (10 mins)

Blending (15 mins)

Heating of pan and butter (2 mins)

Adding of condensed milk and powdered milk (15 mins)

Adding of the blended carrots, coconut flesh and banana (10mins)

Mixing and Boiling (10 mins)

32

Transfer mixture into a baking tray and letting it cool. (30 mins)
 Cutting (10 mins)

Rolling and Coating (20 mins)

Wrapping (20 mins)

For one month period:

1. Preparation of the ingredients and materials needed ( 5 minutes)

- carrots
- bananas
- coconut flesh
- butter
- condensed milk
- powdered milk
- white sugar
- Blender
- Pan
- Wooden/stainless spoon
- Chopping Board
- Knife
- Mixer
- Dough Cutter
- Baking tray
- White pastillas paper

33
 2. Slice the carrots , bananas and coconut flesh into small pieces so it could easily be

blended ( 10 minutes)

3. Blend the carrots, banana and coconut flesh then transfer it in a bowl. ( 15 minutes )

4. Heat the pan. Melt butter over low heat.(2 minutes)

5. Add condensed milk and powdered milk. Stir well. ( 15 minutes )

6. Slowly add the blended carrots, banana and coconut while stirring continuously. (10

minutes )

7. Cook over low heat until the mixture thickens. ( 10 minutes )

8. Spread evenly on a baking tray and allow it to cool. ( 30 minutes )

9. Cut it into 5 inches x 1cm sizes. ( 10 minutes )

10. Roll and coat each in white sugar. ( 20 minutes )

11. Wrap it with white pastillas papers. ( 20 minutes )

C. PLANT SIZE AND PRODUCTION SCHEDULE

The proponents will also be the employees. Production will start an hour earlier at 7:00

am until 4:00 pm. It would be an 8 hours working period with one hour flexible lunch break.

The display area which also serves as a little store would be open from 8:00 am to 5:00 pm.

There will be a production of 1,026 pieces of pastillas per day. Two will be working in the

production of the product – one will be hired and the other will be a managing partner. The

production will operate at least 5 days a week. Delivery of the finished product will be done

34
every Wednesday and Friday. Purchasing of raw materials specifically the carrots, banana and

coconut flesh would be on a daily basis to make sure it is fresh. Other non-perishable raw

materials would be purchased on a weekly basis.

Assuming that operation will be 5 days a week, the normal capacity in days is 300, while

the normal capacity per product in units is shown below:

Working days/week 25

Multiply by: Months in a year 12

Full capacity in days 300

Schedul
e
Total working hours per day 16 1
Divided by: Total time to produce per batch (hours) 2.45 2
Total batches per day 6.53
Multiply by: Capacity based on tools used (unit) 180 3
Total Capacity (in pieces) 1175.40
Divided by: Pieces of pastillas per pack 10
Maximum Capacity per day (in packs) 118
Multiply by: Operating days per day 300
Annual Full/ Maximum Capacity 35,400

Annual Maximum Capacity 35, 400 packs

Multiply by: Allowance for spoilage and idle time 95%
Annual Normal Capacity 33,630 packs

Supporting Computations:

Schedule 1:

Number of workers 2
Multiply: Working hours per
8
day
Total working hours per day 16

Schedule 2:

Preparation of ingredients & materials 5 mins

35
 Slicing 10 mins
Blending 15 mins
Heating of pan & butter 2 mins
Adding of condensed & powdered
15 mins
milk
Adding of main ingredients 10 mins
Mixing and Blending 10 mins
Transfer of mixture 30 mins
Cutting 10 mins
Rolling and Coating 20 mins
Wrapping 20 mins
Total time to produce per batch 147mins/ 2.45 hours

Schedule 3:

Baking trays quantity 3

Multiply: Slices per baking tray 30
Total 90
Multiply: Number of employees 2
Total capacity based on tools used 180

D. MACHINERY AND EQUIPMENT/ FURNITURE AND FIXTURES

Machinery and Equipment

Machinery/ Equipment Estimated Useful Life Cost

Stove – an apparatus for cooking or 5 years ₱ 1,395.00
heating
Standard Blender – used in

36
 preparation of carrots, banana and
coconut puree 5 years ₱1,299.00
 stainless steel star serrated blade
 2 speed with pulse
Cooling Rack – used to allow air to 8 years ₱ 2,200.00
circulate freely to cool baked goods
Food Cabinet – used as storage for
inventories 10 years ₱ 8,500.00
 8 layer
 Designed for food
Refrigerator 10 years ₱ 12,900.00
 Size: 545x687x1309 mm
Preparation/ Bakers Table 10 years ₱ 9,400.00
Delivery Motorcycle 20 years ₱ 49,400.00
Total ₱ 35,694.00

Furniture and Fixtures

Description Estimated Useful Life Cost

Display Case
A cabinet with one or often more 15 years ₱5,500.00
transparent glass surfaces, used to
display ready-to-sell products
Chairs 5 years ₱1,500.00
For walk-in customers
Office Table 5 years ₱4,000.00
Phone (Keystone) 5 years ₱899.00
For delivery purposes
File Cabinet 5 years ₱4,650.00
Total ₱16,549.00

E. LOCATION

To avoid rent expense, the manufacturing of Cacobapastillas will be in the residence of

one of the proponents. This is located at 28 Upper Brookside, Baguio City and is just a five

minute drive to the Town Proper where it could easily be distributed. Transportation would not

also cost much. The space is wide enough for the manufacturing, packaging and storing process.

F. FLOOR PLAN AND LAYOUT

37
 The manufacturing area for CacobaPastillas is located at 28 Upper Brookside, Baguio

City. The location will serve both as production area and storage area and will also include a

small display area where walk in customers could avail of the product. The place is divided into

four major areas, the product processing area, packaging area, storage area and the display area.

38
The area for manufacturing the product is an idle space in one of the proponents’ residence. The

space is enough and would be used exclusively for manufacturing CacobaPastillas.

The manufacturing space will consist of 4 major areas, the product processing area,

packaging area, storage area and the display area.

G. BUILDING AND FACILITIES

39
VICINITY MAP

H. RAW MATERIALS & SUPPLIES

Raw Materials (For One Month Period) Quantity Unit Cost Total Cost
Powdered Milk 56,000
A manufactured dairy product made by evaporating grams ₱84 ₱15,680.0
milk to dryness. (186 0
packs)
Condensed Milk 350 cans ₱57.6 ₱20,160.0
A form of concentrated milk in which about 60 percent 0
of the water content has been removed, after which
sugar is added before canning. Condensed milk contains
40 to 45 percent sugar. It's rich and thick, with a caramel
color and a super-sweet flavor.
Sugar 4,666.67 ₱11.25/25 ₱2,100.00
A sweet crystalline substance obtained from various grams grams
plants, especially sugar cane and sugar beet, consisting (187
40
essentially of sucrose, and used as a sweetener in food packs)
and drink.
Carrots 373pcs ₱7 ₱2,613.25
A tapering orange-colored root eaten as a vegetable
Banana 747 ₱5 ₱3,733.25
A long curved fruit that grows in clusters and has soft
pulpy flesh and yellow skin when ripe.
Coconut Meat 9332.70 ₱6.50/50 ₱1,213.25
The edible white meat of a coconut. grams grams
Total Raw Material ₱45,499.7
5

All of the raw materials were bought from different central business district area

in Baguio. Prices were based on the market price in the market and groceries. The life of

the product is 1 month.

Factory Tools

Factory Tools (Description) Quantit Unit Cost Total

y Cost
Chopping Board 2 units ₱ 139.00 ₱ 278
Durable board on which to place material for slicing
Knife 2 units ₱ 99.00 ₱198
An instrument composed of a blade fixed into a handle;
used for slicing and peeling main ingredients.
Gas Tank with Gas (Solane) 1 unit ₱3,517.00 ₱3,517
A safe container for flammable fluids such as gas (used
in cooking pastillas)
Baking Trays 6 units ₱ 279.75 ₱1,678.5
A flat, rectangular metal used for shaping and cooling 0
the pastillas.
Cooking Pan 2 units ₱ 289.00 ₱578
A usually rounded metal or earthen container used as
cooking or for holding liquids.
Wooden Spatula 2 units ₱ 63.75 ₱127.50
A device with a broad, flat, blunt shape, used for mixing
and spreading things, especially in cooking
Mixer/Egg beater 2 units ₱129.75 ₱259.50
A kitchen utensil used for beating/ mixing ingredients.
Dough Cutter 2 units ₱ 76 ₱152
A tool used by bakers to manipulate dough. It is
generally a sheet of stainless sheet with a handle of

41
wood, plastic, or simply a roll in the steel blade along
one of the long sides.
Total Factory Tools ₱6,778.5
0

Factory Supplies
Factory supplies (Description) Cost per Unit Quantity Total Cost
Apron
A protective or decorative garment
worn
₱ 50.00 2 units ₱ 100.00
er the front of one's clothes and tied at
the back.
Brooms
A long-handled brush of bristles or twigs ₱ 65.00 1 units ₱ 65.00
used for sweeping.
Dustpan
A flat handheld receptacle into which dust ₱ 50.00 1 units ₱ 50.00
and waste can be swept from the floor.
Dish Towel
A cloth for drying washed dishes, utensils, ₱ 6.00 5 units ₱ 30.00
and glasses.
Dishwashing Liquid
A detergent used to assist in dishwashing.
10 units
It is primarily used for hand washing of ₱ 30.00 ₱ 300.00
glasses, plates, cutlery, and cooking
utensils in a sink or bowl.
Dishwashing Sponge
A tool or cleaning aid consisting of
porous material. Sponges are usually used
₱ 18.00 5 units ₱ 90.00
for cleaning impervious surfaces. They are
especially good at absorbing water and
water-based solutions.
Floor Mop
A mass or bundle of coarse strings or
yarn, etc., or a piece of cloth, sponge, or
₱ 110.00 1 units ₱ 110.00
other absorbent material, attached to a
pole or stick. It is used to soak up liquid,
for cleaning floors and other surfaces.
Hair Net
A piece of fine mesh fabric for confining ₱ 10.00 10 units ₱ 100.00
the hair.
Tissue Napkin ₱ 89.00 12 rolls ₱ 1068.00
A square piece of cloth or paper used at a

42
meal to wipe the fingers or lips and to
protect garments, or to serve food on.
Garbage bag
₱ 59.00 10 packs ₱ 590.00
Disposable bag used to contain rubbish
Liquid hand soap
₱ 75.00 2 units ₱ 150.00
Hand cleansing agent
Gloves
Usually worn in the kitchen to easily
protect the wearer's hand from hot objects
₱ 25.00
such as ovens, stoves, cookware, etc. ₱ 25.00 1 pack
Plastic gloves used for cooking to avoid
contamination.
Paper Bags
A bag made of paper or plastic for holding ₱ 20.00 100 packs ₱ 2000.00
customer's purchases upon request.
Total ₱ 4,678.00

Table 21
Office Tools and Supplies
Office Supplies (Description) Cost per Unit Quantity Total Cost
Ballpoint pen
A pen that dispenses ink over a metal ball ₱ 6.00 10 units ₱ 60.00
at its point that is used for writing.
Pencil
An instrument for writing or drawing,
consisting of a thin stick of graphite or a
₱ 50.00 1 box ₱ 50.00
similar substance enclosed in a long thin
piece of wood or fixed in a metal or
plastic case.
Stapler ₱ 100.00 1 unit ₱100.00
Staple wire (No.35)
A type of two-pronged fastener, usually
₱ 35.00 5 boxes ₱ 175.00
metal, used for joining or binding
materials
Long folder
A folding cover or holder, typically made
₱ 4.00 20 units ₱ 80.00
of stiff paper or cardboard, for storing of
paper.
Fastener
A device that mechanically joins or affixes ₱ 1.00 20 units ₱ 20.00
two or more objects together.
Coupon bond
₱ 125.00 1 ream ₱ 158.00
A high quality durable writing paper
Scotch tape ₱ 6.00 5 units ₱ 30.00

43
 A transparent adhesive tape used for
sealing, attaching or mending.
Official Receipt ₱2,500.00 1 pack 2,500.00
Journals
Books of original entry where all business
₱ 40.00 5 units ₱ 200.00
transactions are recorded that is essential
in preparing the financial statements.
Total ₱3,373

A. UTILITIES

The utilities that will be used in the production are electricity, water and liquid

petroleum gas (LPG). The consumption of electricity is attributed to the equipment and

facilities used such as refrigerator and lightings while the consumption of water will be

used for cleaning up the materials and for the personnel’s hygiene as well. The LPG will

be used to heat up the product. The Baguio Electric Cooperative Inc. (BENECO) and the

Baguio Water District (BAWADI) will be the supplier of electricity and water. The refill

of LPG \\or gas tank can be purchase from any local dealers within Baguio.

B. WASTE MANAGEMENT

The CCB enterprise will implement proper segregation policy. Proper segregation of

Biodegradable and Non-Biodegradable, Recycles and Residual will be observed. The enterprise

will provide its own garbage bin within and outside the plant to maintain proper disposal practice

and cleanliness. The plastics and papers will be segregated from non-biodegradable that cannot

longer be recycled. Waste will be properly disposed using garbage bags and would be collected

every week

The enterprise will supervene the Government’s rules and regulations about

garbage collection so that there would be no problem in our production site. Weekly

44
 schedule of collection of garbage would be strictly followed. The enterprise has no

hazardous or any dangerous waste.

C. PRODUCTION COST
(For 3 months period)

Total Raw Materials 136,499.30

Labor Cost 21,375.00
Indirect Material 19,778.04
Machines & Equipment 85,594.00
Furnitures& Fixtures 16,549.00
Factory Tools 7,148.50
Factory Supplies 4,678.00
Office Supplies 3,373.00
Taxes And Licenses 16,990.00
Utilities Expense 5752.51
Delivery Expense 4,500.00
Advertising Cost 902.50
Total Production Cost 323,138.85
Divided by: Number of Production 84,000
Cost of Product per piece 3.85
Add: Mark-up Cost 0.17
Selling Price per piece 4.50
Selling Price per pack 45.00
D. LABOR REQUIREMENTS

The enterprise will hire one additional production worker to help with the

operation of business. 2 will be in charge of the production of pastillas – one is a

managing partner and the other one is hired. Two managing partners will be in charge of

administrative works and another will act as an accountant. Lastly, one managing partner

will be in charge of the delivery of the products.

CCB Enterprise
Schedule of Project Cost

45
 Total Raw Materials 1 136,499.30
Labor Cost 2 21,375.00
Indirect Material 3 19,778.04
Machines & Equipment 4 85,594.00
Furnitures& Fixtures 5 16,549.00
Factory Tools 6 7,148.50
Factory Supplies 7 4,678.00
Office Supplies 8 3,373.00
Taxes And Licenses 9 16,990.00
Utilities Expense 10 5752.51
Delivery Expense 11 4,500.00
Advertising Cost 12 902.50
Total Production Cost 323,138.85

Schedule 1: Total Raw Materials

Quantity Unit Cost Total Cost

Powdered Milk 153,900 grams (513 packs) P84/ 300 grams 47,040
Condensed Milk 1,050 cans P54 60,480
Sugar 12,825 grams (513 packs) P11.25/25 grams 6,300
Carrots 1,050 pieces P7 7,839.75
Banana 2,100 pieces P5 11,199.75
Coconut Flesh 25,650 grams P6.50/50 grams 3,639.75
Total Raw Materials 136,499.30

Schedule 2: Labor Cost

Direct Labor per day 285

Multiply by: Working days 25
Monthly Salary 7,125
Multiply by: Number of months 3
Total Labor Cost ₱21,375

Schedule 3: Indirect Materials

Butter 2,517.68
White Pastillas Wrapper (5.75*500) 2875.00
Packaging Label (24 papers*2pesos*25 days) 1200.00
Total 6,592.68
Multiply by: Number of months 3
Total Indirect Materials 19,778.04

Schedule 4: Machines and Equipment

46
 Unit Cost Quantity Cost
1,395.00
Stove 1 1,395.00
Standard Blender 1,299.00 1 1,299.00
Cooling Rack 336.67 1 2,200.00
Food Cabinet 8,500.00 1 8,500.00
Refrigerator 12,900.00 1 12,900.00
Preparation/ Bakers Table 9,400.00 1 9,400.00
Delivery Motorcycle 49,900.00 1 49,900.00
Total Machines & Equipment ₱85,594.00

Schedule 5: Furniture and Fixtures

Unit Cost Quantity Total Cost
Display Case 5,500 1 5,500.00
Chairs 500 3 1,500.00
Office Table 4000 1 4,000.00
Phone (Samsung Keystone ) 899 1 899.00
File Cabinet 4650 1 4,650.00
Total Furnitures and Fixtures ₱16,549.00

Schedule 6: Factory Tools

Quantity Unit Cost Total Cost

Chopping Board 2 units Php 139.00 278

Knife 2 units ₱ 99.00 198
Gas Tank with Gas 1 unit ₱3,517.00 3517
Baking Trays 6 units ₱ 279.75 1678.5
Cooking Pan 2 units ₱ 289.00 578
Wooden Spatula 2 units ₱ 63.75 127.5
Mixer/Egg beater 2 units ₱129.75 259.5
Dough Cutter 2 units ₱ 76 152
Cash Box 1 unit ₱360 360
Total Factory Tools     ₱7,148.50

Schedule 7: Factory Supplies

Unit Cost Quantity Total Cost

Apron ₱50.00 2 units 100
Brooms ₱65.00 1 units 65

47
 Dustpan ₱50.00 1 units 50
Dish Towel ₱6.00 5 units 30
₱30.00 10 units 300
Dishwashing Liquid
Dishwashing Sponge ₱18.00 5 units 90
Floor Mop ₱110.00 1 units 110
Hair Net ₱10.00 10 units 100
Tissue Napkin ₱89.00 12 rolls 1068
Garbage bag ₱59.00 10 packs 590
Liquid hand soap ₱75.00 2 units 150
Gloves ₱25.00 1 pack 25
Paper Bags ₱20.00 100 packs 2000
Total Factory Supplies     ₱4,678

Schedule 8: Office Supplies Unit Cost Quantity Total Cost

Ballpoint pen ₱6.00 10 units 60
Pencil ₱50.00 1 box 50
Stapler 100 1 unit 100
Staple wire (No.35) ₱35.00 5 boxes 175
Long folder ₱4.00 20 units 80
Fastener ₱1.00 20 units 20
Coupon bond ₱158.00 1 ream 158
Scotch tape ₱ 6.00 5 units 30
Journals ₱ 40.00 5 units 200
Official Receipts ₱2500 1 pack 2500
Total Office Supplies     ₱3,373

Schedule 9: Taxes and Licences

License Fee 375.00

Sanitary Permit 200.00
Garbage fee- based on floor area 2500.00
Mayor's Permit 100.00
Barangay District Clearance 800.00
Fire Safety Certificate by BFP 500.00
Business name Registration-DTI 500.00
Document Stamp 15.00
BIR Registration Fee 500.00
Articles of Partnership Registration-SEC 7500.00
Environment Compliance 4000.00
Total Cost of Legal Requirements ₱16,990.00

48
 Schedule 10: Utilities Expense Cost Total
Electricity 8.14/kwh 2856.51
Water 38/ cubic meter 1170.00
Gas Refill 575 per month 1725.00
Total Utilities Expense ₱5751.51

Schedule 11: Delivery Expense

Delivery Cost 150

Multiply by: Number of deliveries 10
Total 1500
Multiply by: Number of Months 3
Total Delivery Cost ₱4,500

Schedule 12: Advertising Expense

Free Taste (200 pcs * 2.66) 532.00

Flyers 370.50

Total Advertising Expense ₱902.50

49
 FINANCIAL STUDY

The financial aspect of a feasibility study is an important aspect because it deals

with the cost of the project. It will give clarity on the question whether the project is

attainable after considering its total costs and possible revenues. Through this, the

marketing, technical, management, taxation and legal phase are quantified in pesos for

the operation of the project. This part of the study will also help the proponents in

evaluating their start-up of their capital.

This chapter requires the preparation of financial statements such as

Comprehensive Income Statement, Statement of Changes in Partner's Equity, Statement

of Financial Position, and the Statement of Cash Flow and its projections for the next 5

years. Certain financial analysis tools were also prepared to help in the assessment of the

project's profitability and its capacity to continue operations.

MAJOR ASSUMPTIONS

1. Income Statement

a. Sales

In 2019, the first year of CCB Enterprise operations, a total of 33,600 units of pastillas will be

sold under the normal capacity of 300 days. There will be no Accounts Receivable for sales are

purely cash transaction. Also, there will be no returns and allowances based on sales that be

considered by the enterprise. Unit selling price is based on the mark up of 70% of cost. The

50
annual increase of selling price for each product will be 5% for the next five years. There is a

5% allowance for spoilage and idle time based on the capacity on units.

b. Cost of Goods Sold

Direct Materials

All purchases are purely cash transactions from VAT-registered suppliers. No purchase

returns and allowances will be considered, for the suppliers won’t accept sales returns and

allowances. Finished Goods Ending Inventory shall be 5% of the total goods available for sale.

Selling prices of raw materials used will increase by 3.5% every year due to estimated annual

inflation rate.

Direct Labor

There will be two workers for the production of CaCoBaPastillas. The workers will be one

managing partner and a hired production staff, who will be paid a basic salary of P7125 per

month. Salary of the hired production staff will increase by 3.5% every year due to estimated

annual inflation rate.

Factory Overhead

Indirect Materials

The indirect materials will have 3.5% annual increase due to estimated annual inflation rate and

1% due to the increase of production.

Utilities Expense

Electricity rates will increase by 3.5% every year due to estimated annual inflation rate.

51
Depreciation Expense

In computing for the annual depreciation expense, the straight-line method will be used.

Tools and Implements

Most of the items under tools and implements were expensed outright on the first year. The

remaining tools and implements to be purchased in the subsequent years has 3.5% due to

estimated annual inflation rate.

Factory Supplies Expense

There will be 3.5% increase due to estimated annual inflation rate.

c. Operating Expenses

Advertising Expense

The advertising expense of P902.50 for the first year is allocated to various advertising methods

such as free taste and flyers. There will be no accumulation of advertising expense for the next

years because only the use of social media will be utilized.

Office Supplies Expense

Office supplies’ selling prices will increase by 3.5% every year due to estimated annual inflation

rate.

Depreciation Expense

The straight-line method will be used in computing annual depreciation expense.

Cost of Legal Requirements

52
The cost of registering the business will be incurred in the first year of operation and only the

renewal and other fees would be paid in the subsequent years.

Percentage Tax Expense

Since CCB Enterprise is not VAT-registered, 3% percentage tax of the gross sales is applied.

2. Balance Sheet

a. Assets

Current Assets

Cash

Cash and Cash Equivalent comprises of cash on hand.

Raw Materials Inventory

There will be no ending inventory for Work-In Process. Ending inventory of Finished Goods will

be 5% of Total Goods Available for Sale.

Noncurrent Assets

Property, Plant and Equipment

Balance of account will be net of accumulated depreciation.

b. Liabilities

Current Liabilities

SSS Payable, PAG-IBIG Payable, PhilHealth Payable

SSS, PAG-IBIG and PhilHealth withheld from the employee's basic salary will be remitted

monthly on or before the 10th day of the following month. No ending balances of contributions’

payables will comprise of employee benefits for the month of December of the current year.

Income Tax Payable

53
The general co-partnership is subject to regular corporate income tax of 30% based on the net

taxable income. Ending balance will comprise of income tax due for the current year (due to

annual remittance of said tax).

c. Partners’ Capital

The partners have agreed to contribute both cash and non-cash investments. One partner,

Ms. Dicang, contributed non-cash investment to the enterprise, specifically land and building,

amounting to P362,500. The other four partners have agreed to contribute equal amount of cash

amounting to P150,000, in excess to the non-cash investment but not exceeding P1,000,000.

They have also agreed on equal sharing of the firm’s net loss and income after tax. Furthermore,

the partners opted not to give any additional investment for the first five years of operation.

Initial Working Capital Requirements

Partner’s Cash Investment

NAME AMOUNT

Pascual, Kumar Israel ₱ 150,000.00

Sombrito, Justin ₱ 150,000.00

Dicang, Shane ₱ 362,500.00

Dumaguin, Romelei ₱ 150,000.00

Mones, Vhernadette ₱ 150,000.00

GRAND TOTAL ₱ 962,500.00

54
55
 FINANCIAL STATEMENTS

CCB Enterprises

Comprehensive Statements of Financial Position

As of December 31, 2019, 2020, 2021, 2022, and 2023

Note Schedule 2019 2020 2021 2022 2023

ASSETS
Current Assets (CA)
Cash and cash equivalents CF ₱ 906,460.29 ₱ 927,492.87 ₱ 950,842.51 ₱974,703.87 ₱ 998,668.08
Inventory 2 38,735.78 41,958.56 43,834.20 45,691.33 47,651.87
Total CA ₱ 945,196.07 ₱969,451.53 ₱ 994,676.61 ₱ 1,020,395.20 ₱ 1,046,339.95

Non-current Assets (NCA)

Property, Plant and Equipment 12 ₱ 443,864.40 ₱ 423,085.80 ₱ 402,307.20 ₱ 381,528.60 ₱ 360,750.00

TOTAL ASSETS ₱ 1,389,060.47 ₱ 1,392,537.23 ₱ 1,396,983.91 ₱ 1,401,923.80 ₱ 1,407,089.95

LIABILITIES AND EQUITY

Current Liabilities (CL)
Income Tax Payable 6 ₱ 38,920.96 ₱ 41,440.83 ₱ 45,048.50 ₱ 49,064.32 ₱ 53,337.73
Utilities Payable 6 23,006.04 23,811.25 24,644.65 25,507.21 26,399.96
SSS Payable 7 780.00 835.00 835.00 890.00 890.00
Philhealth Payable 8 200.00 200.00 200.00 200.00 200.00
PAG-IBIG Payable 9 391.20 487.88 493.50 500.00 500.00
Total Liabilities ₱ 63,298.20 ₱ 66,774.96 ₱ 71,221.64 ₱ 76,161.53 ₱ 81,327.69
Partners' Equity
Pascual, Capital ₱ 222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45
Sumbrito, Capital 222,652.45 222,652.45 222,652.45 222,652.45 222,652.45
Dicang, Capital 435,152.45 435,152.45 435,152.45 435,152.45 435,152.45
Dumaguin, Capital 222,652.45 222,652.45 222,652.45 222,652.45 222,652.45
Mones, Capital 222,652.45 222,652.45 222,652.45 222,652.45 222,652.45
Total Partners' Equity ₱1,325,762.27 ₱1,325,762.27 ₱1,325,762.27 ₱1,325,762.27 ₱1,325,762.27

TOTAL LIABILITIES AND

PARTNERS' EQUITY ₱1,389,060.47 ₱1,392,537.23 ₱1,396,983.91 ₱1,401,923.80 ₱1,407,089.95

CCB Enterprises

Consolidated Income Statement

For the Years Ended December 31, 2019, 2020, 2021, 2022 and 2023

    Note 2019 2020 2021 2022 2023

Sales 1 ₱1,360,800.00 ₱ 1,443,128.40 ₱ 1,530,437.67 ₱ 1,623,029.15 ₱ 1,721,222.41
Cost of Goods Sold 2 735,979.76 797,212.73 832,849.80 868,135.22 905,385.59
Gross Income ₱ 624,820.24 ₱ 645,915.67 ₱ 697,587.87 ₱ 754,893.93 ₱ 815,836.82
Less
Operating Expenses
: 3 105,874.14 93,371.26 96,941.25 100,702.96 104,667.14
Income Before Tax ₱ 518,946.10 ₱ 552,544.42 ₱ 600,646.62 ₱ 654,190.97 ₱ 711,169.68
Less Income Tax Expense
: (30%) 5 155,683.83 165,763.32 180,193.98 196,257.29 213,350.90
Net Income ₱ 363,262.27 ₱ 386,781.09 ₱ 420,452.63 ₱ 457,933.68 ₱ 497,818.77
 CCB Enterprises

Comparative Statement of Cash Flows

For the Years Ended December 31, 2019, 2020, 2021, 2022 and 2023

Schedul
  Note e 2019 2020 2021 2022 2023
Cash Flow from Operating Activities
Income After Tax IS ₱ 363,262.27 ₱ 386,781.09 ₱420,452.63 ₱457,933.68 ₱497,818.77
Decrease (Increase) in Inventory (38,735.28) (3,222.79) (1,875.64) (1,857.13) (1,960.55)
Increase (Decrease) Depreciation Expense
7 20,778.60 20,778.60 20,778.60 20,778.60 20,778.60
Increase(Decrease) in Utilities Payable 6 23,006.04 805.21 833.39 862.56 892.75
Increase (Decrease) SSS Payable 7 780.00 55.00 - 55.00 -
Increase (Decrease) Philhealth tax payable 8 200.00 - - - -
Increase (Decrease) PagIbig Payable 9 391.20 96.68 5.62 6.50 -
Increase(Decrease) in Income Tax Payable 6 38,920.96 2,519.87 ₱3,607.66 ₱4,015.83 ₱4,273.40
Net Cash Provided by (Used in) Operating Activities ₱ 408,603.29 ₱407,813.67 ₱443,802.27 ₱481,795.04 ₱521,802.98

Cash Flow from Investing

Purchase of Furnitues and Fixtures ₱ (16,549.00)
Purchase of Machineries and Equipment (85,594.00)
Net Cash Flow from Investing -₱ 102,143.00

Cash Flow from Financing

Partners' capital contribution (cash) ₱ 600,000.00
Partners' withdrawal - 386,781.09 420,452.63 ₱457,933.68 497,818.77
Net Cash Flow from Financing ₱ 600,000.00 -₱386,781.09 -₱420,452.63 -₱457,933.68 -₱497,818.77

Net Increase (Decrease) in Cash ₱906,460.29 ₱21,032.58 ₱ 23,349.64 ₱23,861.36 ₱23,984.21

Add: Cash and cash equivalent, beg 0 906,460.29 927,492.87 950,842.51 974,703.87
Cash and Cash Equivalent, end ₱906,460.29 ₱ 927,492.87 ₱950,842.51 ₱ 974,703.87 ₱998,688.08
 CCB Enterprise

Comparative Statements of Changes in Partner’s Capital

For the Years Ended December 31, 2019, 2020, 2021, 2022 and 2023

          2019 2020 2021 2022 2023

Pascual, Capital – Beginning ₱ 150,000.00 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45
Add: Share in Income 72,652.45 77,356.22 84,090.53 91,586.74 99,563.75
Less
Withdrawal
: 77,356.22 84,090.53 91,586.74 99,563.75
Pascual, Capital – Ending ₱ 222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45

Sumbrito, Capital -
Beginning ₱ 150,000.00 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45
Add: Share in Income 72,652.45 77,356.22 84,090.53 91,586.74 99,563.75
Less
Withdrawal
: 77,356.22 84,090.53 91,586.74 99,563.75
Sombrito, Capital – Ending ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45

Dicang, Capital - Beginning ₱ 362,500.00 ₱440,575.46 ₱440,575.46 ₱440,575.46 ₱440,575.46

Add: Share in Income 72,652.45 77,356.22 84,090.53 91,586.74 99,563.75
Less
Withdrawal
: 72,652.45 77,356.22 84,090.53 91,586.74 99,563.75
Dicang, Capital - Ending ₱435,152.45 ₱435,152.45 ₱435,152.45 ₱435,152.45 ₱435,152.45

Dumaguin, Capital -
Beginning ₱ 150,000.00 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45
Add: Share in Income 72,652.45 77,356.22 84,090.53 91,586.74 99,563.75
Less
Withdrawal
: 77,356.22 84,090.53 91,586.74 99,563.75
Dumaguin, Capital - Ending ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45

Mones, Capital - Beginning ₱ 150,000.00 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45

Add: Share in Income 72,652.45 77,356.22 84,090.53 91,586.74 99,563.75
Less
Withdrawal
: 77,356.22 84,090.53 91,586.74 99,563.75
Mones, Capital - Ending ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45 ₱222,652.45
NOTES TO FINANCIAL STATEMENTS

Note 1- NATURE OF BUSINESS

CCB Enterprise is a partnership for trade or business. The objective of the entity is to provide its
customers a unique and healthy dessert treat with the use of carrot, coconut and banana as its main
ingredients. CCB Enterprise is located at Aurora Hill to give its customers a unique twist and taste to their
sweet tooth.
Note 2 – BASIS OF PREPARATION
The significant accounting policies that have been used in the preparation of these financial statements are
summarized below. The policies have been consistently applied to all years presented, unless otherwise
stated.
2.1 Basis of financial statements presentation
The accompanying combined financial statements of the enterprise have been prepared on historical cost
basis, except for certain financial assets which have been measured at fair value.
2.2 Statement of compliance
The financial statements of the enterprise have been prepared in accordance with the PFRS for SMEs.
The preparation of the financial statements in accordance with PFRS for SMEs requires the enterprise to
make judgments and estimates that affect the reported amount of assets, liabilities, income and expenses
and disclosure of contingent assets and contingent liabilities. Future events may occur which will cause
the judgment assumptions used in arriving at the estimates to change. The effects of any change in
judgments and estimates are reflected in the financial statements as they become reasonably determinable

Note 3 – ACCOUNTING POLICIES

3.1 Cash
Cash is comprised of cash on hand.
3.2 Raw Materials Inventory
Raw Materials inventory shall encompass all costs of purchase and other costs incurred in bringing the
inventories to their present location and condition.
3.3 Prepaid expenses
Prepayment represents advance payment initially recorded as asset when purchased. The portion of assets
that have been used or expired during the period is charged to expense.
3.3 Property and equipment
Items of property and equipment are measured at cost less accumulated depreciation, which will be
computed using the straight-line method. The initial cost of property and equipment comprises its
purchase price and other directly attributable costs of bringing the property and equipment to its working
condition and location for its intended use.
3.4 SSS, Philhealth, PAG-IBIG Payable
SSS, Philhealth and PAG-IBIG contributions payable are recorded at cost or its face value
3.6 Withholding tax payable
Withholding tax payable is measured at the amount expected to be paid by the enterprise. It resulted due
to withholding of applicable tax on compensation, fees, and payment to suppliers.
3.7 Revenue recognition
Revenue comprises the fair value of the consideration received for the sale of goods in the ordinary
course of the business. Revenue is shown net of sales/VAT, returns and discounts.
The enterprise recognized revenue when the amount of revenue can be reliably measured and it is
probable the future economic benefits will flow to the entity.
3.8 Employee benefit obligations
The enterprise provides short term benefits to its employees in the form of salaries and wages, bonuses,
contribution to SSS / PHIC / HMDF, and other short term employee benefits are part of cost of services
and operating expenses.
NOTE 4 – SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
4.1 JUDGMENTS
The financial statements have been prepared in compliance with PFRS for SMEs. The enterprise qualifies
as Small and Medium-sized Entities. The preparations of financial statements are based upon
management‘s evaluation of relevant facts and circumstances as of the date of the financial statements.
Actual results could differ from such estimates. Judgments and estimate are continually evaluated and are
based on historical experience and other factors, including expectations of future events that are believed
to be reasonable
4.2 ESTIMATES
Estimation of useful lives of property and equipment
Useful lives of property and equipment are estimated based on the period over which these assets are
expected to be available for use. The estimates useful lives of property and equipment are reviewed
periodically and are updated if expectations differ from previous estimates.
Depreciation is computed using the straight-line method over the estimated useful lives of the properties
which are reviewed from time to time to ensure that these are consistent with the expected economic
benefits of the property and equipment.

`
Note 1: Sales

2019 2020 2021 2022 2023

Number of Pastillas per produced
per day 112 113 114 115 117
Multiply by: Number of production
days 300 300 300 300 300
Annual Production 33,600 33,936 34,275 34,618 34,964
Multiply by: Percentage of Sales
(90%) 90% 90% 90% 90% 90%
Expected Sales (rounded) 30,240 30,542 30,848 31,156 31,468
Multiply by: Selling Price (5%) 45 47.25 49.61 52.09 54,70
Annual Sales ₱ 1,360,880.00 ₱ 1,443,128.40 ₱ 1,530,437.67 ₱ 1,623,029.15 ₱ 1,721,222.41

Note 2: Cost of Goods Sold

Schedule 2019 2020 2021 2022 2023

Net Purchases 1 ₱ 545,997.00 ₱570,757.96 ₱596,641.84 ₱623,699.54 ₱651,984.32
Raw Materials, Beginning - - - - -
Raw Materials Available for Use ₱ 545,997.00 ₱570,757.96 ₱596,641.84 ₱623,699.54 ₱651,984.32
Less: Raw Materials, End - - - - -
Raw Materials Used ₱ 545,997.00 ₱570,757.96 ₱596,641.84 ₱623,699.54 ₱651,984.32
Direct Labor 2 93,996.20 97,389.76 100,750.72 104,284.99 107,879.32
Factory Overhead 4 134,722.34 132,287.79 137,332.88 142,007.81 147,482.50
Total Manufacturing Cost ₱ 774,715.54 ₱800,435.51 ₱834,725.44 ₱869,992.34 ₱ 907,346.14
Add: Finished Goods Inventory, beg ₱ 38,735.78 ₱ 41,958.56 ₱ 43,834.20 ₱ 45,691.33
Total Goods Available for Sale ₱ 774,715.54 ₱ 839,171.29 ₱ 876,684.00 ₱913,826.54 ₱953,037.47
Less: Finished Goods Inventory, end(5%) ₱ 38,735.78 ₱41,958.56 ₱ 43,834.20 ₱45,691.33 ₱ 47,651.87
Cost of Goods Sold ₱ 735,979.76 ₱ 797,212.73 ₱ 832,849.80 ₱868,135.22 ₱ 905,385.59
Note 3: Operating Expenses

Schedule 2019 2020 2021 2022 2023

Advertising Expense ₱ 902.50 - - - -
Office Supplies 10 3,373.00 3,387.56 3,504.88 3,626.28 3,751.91
Taxes and Licenses 11 16,990.00 2,100.00 2,100.00 2,100.00 2,100.00
Depreciation Expense 7 20,778.60 20,778.60 20,778.60 20,778.60 20,778.60
Utilities Expense 6 23,006.04 23,811.25 24,644.65 25,507.21 26,399.96
Percentage Tax Expense (3%) 40,824.00 43,293.85 45,913.13 48,690.87 51,636.67
Total Selling and Administrative Expenses ₱105,874.14 ₱ 93,371.26 ₱ 96, 941.25 ₱100,702.96 ₱104,667.14

Note 4: Percentage Tax Expense 2019 2020 2021 2022 2023

Gross Sales ₱1,360,800.00 ₱ 1,443,128.40 ₱1,530,437.67 ₱1,623,029.15 ₱1,721,222.41
Multiply by: Other Percentage Tax Rate 3% 3% 3% 3% 3%
Percentage Tax Expense ₱ 40,824.00 ₱ 43,293.85 ₱ 45,913.13 ₱48,690.87 ₱ 51,636.67

Note 5: Income Tax Expense 2019 2020 2021 2022 2023

Income Before Tax ₱518,946.10 ₱552,544.42 ₱600,646.62 ₱654,190.97 ₱711,169.68
Multiply by: Income Tax Rate 30% 30% 30% 30% 30%
Income Tax Expense ₱ 155,683.83 ₱ 165,763.32 ₱180,193.98 ₱196,257.29 ₱ 213,350.90

Note 6: Income Tax Payable 2019 2020 2021 2022 2023

Annual Income Tax Due ₱ 155,683.83 ₱ 165,763.32 ₱180,193.98 ₱196,257.29 ₱ 213,350.90
Taxes Paid- 3 Quarters 116,762.87 124,322.49 135,145.49 147,192.97 160,013.18
Income Tax Payable ₱ 38,920.96 ₱ 41,440.83 ₱ 45,048.50 ₱ 49,064.32 ₱ 53,337.73
 Note 7: SSS Payable 2019 2020 2021 2022 2023
SSS- Employee's Share ₱ 254.30 ₱ 272.50 ₱ 272.50 ₱290.70 ₱290.70
SSS- Employer's Share 525.70 562.50 562.50 599.30 599.30
Total SSS Payable ₱ 780.00 ₱835.00 ₱835.00 ₱890.00 ₱890.00

Note 8: PhilHealth Payable 2019 2020 2021 2022 2023

Philhealth- Employee's Share ₱100.00 ₱100.00 ₱100.00 ₱100.00 ₱100.00
1 1
Philhealth- Employer's Share 00.00 00.00 100.00 100.00 100.00
Total PhilHealth Payable ₱200.00 ₱200.00 ₱200.00 ₱200.00 ₱200.00

Note 9: PAGIBIG Payable 2019 2020 2021 2022 2023

PAGIBIG- Employee's Share ₱71.25 ₱73.39 ₱75.59 ₱77.86 ₱80.19
1 1 160.
PAGIBIG- Employer's Share 42.50 46.78 151.18 155.71 39
Total HDMF Payable ₱391.20 ₱ 487.88 ₱493.50 ₱500.00 ₱500.00

Schedule 1: Purchases

2019 2020 2021 2022 2023

Powdered Milk ₱188.160.00 ₱196,693.06 ₱205,613.09 ₱214,937.64 ₱ 224,685.06
Condensed Milk 241,920.00 252,891.07 264,359.68 276,348.39 288,880.79
Sugar 25,200.00 26,342.82 27,537.47 28,786.29 30,091.75
Carrots 31,359.00 32,781.13 34,267.75 35,821.80 37,446.32
Banana 44,799.00 46,830.63 48,954.40 51,174.49 53,495.25
Coconut Flesh 14,559.00 15,219.25 15,909.44 16,630.94 17,385.15
Total ₱ 545,997.00 ₱570,757.96 ₱596,641.84 ₱623,699.54 ₱651,984.32
Schedule 2: Salaries Expense – Direct Labor

Schedule 2019 2020 2021 2022 2023

Wage per day 285 294.975 305.30 315 327.04
Multiply by: Number of days per month 25 25 25 25 25
Total monthly salary 7125 7374.375 7632.48 7899.61 8176.10
Multiply by: Number of Months 12 12 12 12 12
Total Salary Expense per year ₱ 85,500.00 ₱88,492.50 ₱91,589.74 ₱94,795.38 ₱98,113.22
Add: Employee Benefits 3 8,388.30 8,698.73 9,160.98 9,489.61 9,766.10
Direct Labor
₱ 93,888.30 ₱ 97,389.76 ₱100,750.72 ₱104,284.99 ₱107,879.32

Schedule 3: Employee Benefits 2019 2020 2021 2022 2023

SSS 780.00 835.00 835.00 890.00 890.00

PAG-IBIG 391.20 487.88 493.50 500.00 500.00

PHILHEALTH 200.00 200.00 200.00 200.00 200.00

13th MONTH PAY 7,125.00 7,374.38 7,632.48 7,899.61 8,176.10

Total Employee Benefits (Production) ₱ 8,496.20 ₱ 8,897.26 ₱ 9,160.98 ₱ 9,489.61 ₱9,766.10

Schedule 4: Manufacturing 2019 2020 2021 2022 2023

Overhead Schedule

Indirect Materials 5 ₱ 79,111.20 ₱82,698.89 ₱ 86,449.29 ₱90,369.76 ₱ 94,468.03

Utilities Expense 6 23,006.04 23,811.25 24,644.65 25,507.21 26,399.96
Depreciation- Factory 7 20,788.60 20,788.60 20,788.60 20,788.60 20,788.60
Tools and Implements 8 7,148.50 157.32 450.56 168.53 472.22
Factory Supplies 9 4,678.00 4,841.73 5,009.79 5,183.71 5,363.69
Total Manufacturing Overhead ₱134,722.34 ₱ 132,287.79 ₱137,332.88 ₱142,007.81 ₱147,482.50

2019 2020 2021 2022 2023

Schedule 5 - Indirect Materials (3.5%)
Butter ₱ 2,517.60 ₱ 2,631.77 ₱ 2,751,12 ₱ 2,875.89 ₱ 3,006.31
White Pastillas Wrapper 2,875.00 3,005.38 3,141.68 3,284.15 3,433.09
Packaging Cost 1,200.00 1,254.42 1,311.31 1,370.78 1,432.94
Total ₱6,592.60 ₱ 6,891.57 ₱ 7,204.11 ₱ 7,530.81 ₱ 7,872.34
Multiply by: Number of months 12 12 12 12 12
Annual Indirect Materials ₱79,111.20 ₱82,698.89 ₱86,449.29 ₱90,369.76 ₱ 94,468.03

Schedule 6: Utilities Expense (3.5%) 2019 2020 2021 2022 2023

Electricity ₱ 952.17 ₱985.50 ₱ 1,019.99 ₱ 1,055.69 ₱1,157.37
Water 390.00 439.65 417.78 432.40 447.53
Gas Refill 575 595.125 615.95 637.51 659.83
Total Utilities Expense per month ₱ 1,917.17 ₱1,984.27 ₱2,053.72 ₱2,125.60 ₱ 2,200.00
Multiply by number of months 12 12 12 12 12
Total Utilities Expense per year ₱23,006.04 ₱ 23,811.25 ₱ 24,644,65 ₱25,507.21 ₱ 26,399.96

Schedule 7: Depreciation 2019 2020 2021 2022 2023

Machines &Equipments
Stove (P1,295 * 0.20) ₱ 259.00 ₱ 259.00 ₱ 259.00 ₱ 259.00 ₱ 259.00
Standard Blender (P1,299 * 0.20) 259.80 259.80 259.80 259.80 259.80
Cooling Rack (P2,200 * 0.125) 275.00 275.00 275.00 275.00 275.00
Food Cabinet (P8,500 * 0.10) 850.00 850.00 850.00 850.00 850.00
Baker's Table (P9,400 * 0.10) 940.00 940.00 940.00 940.00 940.00
Refrigerator (P12,900 * 0.10) 1,290.00 1,290.00 1,290.00 1,290.00 1,290.00
Delivery Motorcycle (P49,900*.05) 2,495.00 2,495.00 2,495.00 2,495.00 2,495.00
Property - Building (P250,000*.05) 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00
Total Depreciation – Factory ₱ 18,868.80 ₱18,868.80 ₱18,868.80 ₱ 18,868.80 ₱18,868.80

Furnitures& Fixtures
Display Case (P5500*0.125) ₱ 687.50 ₱ 687.50 ₱ 687.50 ₱ 687.50 ₱ 687.50
Chairs (P3000 * 0.20) 600.00 600.00 600.00 600.00 600.00
Office Chair (P1,495 * 0.20) 299.00 299.00 299.00 299.00 299.00
Office Table (P4,000 * 0.20) 800.00 800.00 800.00 800.00 800.00
Phone (P899 * 0.20) 179.80 179.80 179.80 179.80 179.80
File Cabinet (P4,650 * 0.20) 930.00 930 930 930 930
Total Depreciation-Furnitures and Fixtures ₱ 1,909.80 ₱ 1,909.80 ₱ 1,909.80 ₱ 1,909.80 ₱ 1,909.80
Total Depreciation ₱20,778.60 ₱ 20,778.60 ₱20,778.60 ₱20,778.60 ₱ 20,778.60

Schedule 8: Tools and Implements 2019 2020 2021 2022 2023

Chopping Boards ₱278.00 - ₱ 287.73 - ₱297.80
Knives 198.00 - - - -
Gas tank with Gas 3,517.00 - - - -
Baking Trays 1,678.50 - - - -
Cooking Pans 578.00 - - - -
Wooden Spatulas 127.50 - - -
Mixer/Egg Beater 259.50 - - - -
Dough Cutter 152.00 157.32 162.83 168.53 174.42
Cash Box 360.00 - - - -
Total ₱7,148.50 ₱157.32 ₱ 450.56 ₱ 168.53 ₱ 472.22

Schedule 9: Factory Supplies (3.5%)

 Apron ₱ 100.00 ₱103.50 ₱ 107.12 ₱ 110.87 ₱114.75
Brooms 65.00 67.28 69.63 72.07 74.59
Dustpan 50.00 51.75 53.56 55.44 57.38
Dish Towel 30.00 31.05 32.14 33.26 34.43
Dishwashing Liquid 300.00 310.50 321.37 332.62 344.26
Dishwashing Sponge 90.00 93.15 95.01 96.91 98.85
Floor Map 110.00 113.85 117.83 121.96 126.23
Hair Net 100.00 103.50 107.12 110.87 114.75
Tissue Napkin 1068.00 1,105.38 1,144.07 1,184.11 1,225.55
Garbage Bag 590.00 610.65 632.02 654.14 677.04
Liquid Hand Soap 150.00 155.25 160.68 166.31 172.13
Gloves 25.00 25.88 26.78 27.72 28.69
Paper Bags 2,000.00 2,070.00 2,142.45 2,217.44 2,295.05
Total Production Supplies ₱4,678.00 ₱4,841.73 ₱5,009.79 ₱5,183.71 ₱5,363.69

Schedule 10- Office Supplies (3.5%)

2019 2020 2021 2022 2023
Ballpen ₱60.00 ₱ 62.10 ₱ 64.27 ₱66.52 ₱68.85
Pencil 50.00 51.75 53.56 55.44 57.38
Stapler 100.00 - - - -
Staple wire 175.00 181.13 187.46 194.03 200.82
Long Folder 80.00 82.80 84.46 86.15 87.87
Fastener 20.00 20.70 21.42 22.17 22.95
Coupon Bond 158.00 163.53 169.25 175.18 181.31
Scotch Tape 30.00 31.05 32.14 33.26 34.43
Official Receipt 2500.00 2,587.50 2,678.06 2,771.79 2,868.81
Journals 200.00 207.00 214.25 221.74 229.50
Total ₱3,373.00 ₱3,387.56 ₱3,504.88 ₱3,626.28 ₱3,751.91
 Schedule 11 - Taxes and Licenses 2019 2020 2021 2022 2023
License Fee 375.00 - - -
Sanitary Permit 200.00 200.00 200.00 200.00 200.00
Garbage fee- based on floor area 2500.00 - - - -
Mayor's Permit 100.00 100.00 100.00 100.00 100.00
Barangay District Clearance 800.00 800.00 800.00 800.00 800.00
Fire Safety Certificate by BFP 500.00 500.00 500.00 500.00 500.00
Business name Registration-DTI 500.00 - - - -
Document Stamp 15.00 - - - -
BIR Registration Fee 500.00 500.00 500.00 500.00 500.00
Articles of Partnership Registration-SEC 7500.00 - - - -
Environment Compliance 4000.00 - - - -
Total Taxes and Licenses ₱ 16,990.00 ₱2,100.00 ₱2,100.00 ₱2,100.00 ₱2,100.00

Schedule 12- Property, Plant and Equipment 2019 2020 2021 2022 2023

Stove ₱ 1,395.00

Standard Blender 1,299.00

Cooling Rack 2,200.00

Food Cabinet 8,500.00

Refrigerator 12,900.00
 Preparation/ Baker's Table 9400.00

Delivery Motorcycle 49900.00

Furniture and Fixtures 16,549.00

Property - Land and Building 362500.00

Total Cost ₱ 464,643.00 ₱ 443,864.40 ₱ 423,085.80 ₱ 402,307.20 ₱ 381,528.60

Less: Accumulated Depreciation 20,778.60 20,778.60 20,778.60 20,778.60 20,778.60

Total Property, Plant and Equipment ₱ 443,864.40 ₱ 423,085.80 ₱ 402,307.20 ₱ 381,528.60 ₱ 360,750.00

FINANCIAL ANALYSES

VERTICAL ANALYSIS

CCB Enterprise

Comprehensive Statements of Financial Position

As for Years Ended December 31, 2019, 2020 and 2021

2019 2020 2021

ASSETS
Current Assets (CA)
Cash and cash equivalents ₱ 906,460.29 65.26% ₱ 927,492.87 66.60% ₱ 950,842.51 68.06%
Inventory 38,735.78 2.79% 41,958.56 3.01% 43,834.20 3.14%
Total CA ₱ 945,196.07 68.05% ₱969,451.53 69.62% ₱ 994,676.61 71.20%

Non-current Assets (NCA)

Property, Plant and Equipment ₱ 443,864.40 31.95% ₱ 423,085.80 30.38% ₱ 402,307.20 28.80%

100.00
TOTAL ASSETS ₱ 1,389,060.47 % ₱ 1,392,537.23 100.00% ₱ 1,396,983.91 100.00%

LIABILITIES AND EQUITY

Current Liabilities (CL)
Income Tax Payable ₱ 38,920.96 2.80% ₱ 41,440.83 2.98% ₱ 45,048.50 3.22%
Utilities Payable 23,006.04 1.66% 23,811.25 1.71% 24,644.65 1.76%
SSS Payable 780.00 0.06% 835.00 0.06% 835.00 0.06%
Philhealth Payable 200.00 0.01% 200.00 0.01% 200.00 0.01%
PAG-IBIG Payable 391.20 0.03% 487.88 0.04% 493.50 0.04%
Total Liabilities ₱ 63,298.20 4.56% ₱ 66,774.96 4.80% ₱ 71,221.64 5.10%

Partners' Equity
Pascual, Capital ₱ 222,652.45 16.03% ₱ 222,652.45 15.99% ₱ 222,652.45 15.94%
Sumbrito, Capital 222,652.45 16.03% 222,652.45 15.99% 222,652.45 15.94%
Dicang, Capital 435,152.45 31.33% 435,152.45 31.25% 435,152.45 31.15%
Dumaguin, Capital 222,652.45 16.03% 222,652.45 15.99% 222,652.45 15.94%
Mones, Capital 222,652.45 16.03% 222,652.45 15.99% 222,652.45 15.94%
Total Partners' Equity ₱1,325,762.27 95.44% ₱1,325,762.27 95.20% ₱1,325,762.27 94.99%

TOTAL LIABILITIES AND 100.00

PARTNERS' EQUITY ₱1,389,060.47 % ₱1,392,537.23 100.00% ₱1,396,983.91 100.00%

CCB Enterprise

Comprehensive Statements of Financial Position

 As for Years Ended December 31, 2022 and 2023

2022 2023

ASSETS

Current Assets (CA)

Cash and cash equivalents ₱974,703.87 69.53% ₱ 998,668.08 70.98%

Inventory 45,691.33 3.26% 47,651.87 3.39%

Total CA ₱ 1,020,395.20 72.79% ₱ 1,046,339.95 74.36%

Non-current Assets (NCA)

Property, Plant and Equipment ₱ 381,528.60 27.21% ₱ 360,750.00 25.64%

TOTAL ASSETS ₱ 1,401,923.80 100.00% ₱ 1,407,089.95 100.00%

LIABILITIES AND EQUITY

Current Liabilities (CL)

Income Tax Payable ₱ 49,064.32 3.50% ₱ 53,337.73 3.79%

Utilities Payable 25,507.21 1.82% 26,399.96 1.88%

SSS Payable 890.00 0.06% 890.00 0.06%

Philhealth Payable 200.00 0.01% 200.00 0.01%

PAG-IBIG Payable 500.00 0.04% 500.00 0.04%

 Total Liabilities ₱76,161.53 5.43% ₱ 81,327.69 5.78%

Partners' Equity

Pascual, Capital ₱ 222,652.45 15.88% ₱ 222,652.45 15.82%

Sumbrito, Capital 222,652.45 15.88% 222,652.45 15.82%

Dicang, Capital 435,152.45 31.04% 435,152.45 30.93%

Dumaguin, Capital 222,652.45 15.88% 222,652.45 15.82%

Mones, Capital 222,652.45 15.88% 222,652.45 15.82%

Total Partners' Equity ₱1,325,762.27 94.57% ₱1,325,762.27 94.22%

TOTAL LIABILITIES AND PARTNERS'

EQUITY ₱1,401,923.80 100.00% ₱1,407,089.95 100.00%

HORIZONTAL ANALYSIS
 CCB Enterprises

Comparative Statements of Financial Position

As of Years Ended December 31, 2019 and 2020

Peso
2019 2020 Change % 2020 2021 Peso Change %

ASSETS

Current Assets (CA)

Cash and cash equivalents ₱ 906,460.29 ₱ 927,492.87 21,032.58 2.32% ₱ 927,492.87 ₱ 950,842.51 23,349.64 2.52%
Inventory 38,735.78 41,958.56 3,222.79 8.32% 41,958.56 43,834.20 1,875.64 4.47%
Total CA ₱ 945,196.07 ₱969,451.53 24,255.37 2.57% ₱969,451.53 ₱ 994,676.61 25,225.28 2.60%

Non-current Assets (NCA)

Property, Plant and
Equipment ₱ 443,864.40 ₱ 423,085.80 -20,778.60 -4.68% ₱ 423,085.80 ₱ 402,307.20 -20,778.60 -4.91%

TOTAL ASSETS ₱ 1,389,060.47 ₱1,392,537.23 3,476.77 0.25% ₱1,392,537.23 ₱ 1,396,983.91 4,446.68 0.32%

LIABILITIES AND
EQUITY

Current Liabilities (CL)

8.71
Income Tax Payable ₱ 38,920.96 ₱41,440.83 2,519.87 6.47% ₱41,440.83 ₱45,048.50 3,607.66 %
3.50
Utilities Payable 23,006.04 23,811.25 805.21 3.50% 23,811.25 24,644.65 833.39 %
0.00
SSS Payable 780.00 835.00 55.00 7.05% 835.00 835.00 0 %
0.00
Philhealth Payable 200.00 200.00 0.00 0.00% 200.00 200.00 0 %
1.15
PAG-IBIG Payable 391.20 487.88 96.68 24.71% 487.88 493.50 5.62 %
 6.66
Total Liabilities ₱ 63,298.20 ₱ 66,774.96 3,476.77 5.49% ₱66,774.96 ₱71,221.64 4,446.68 %

Partners' Equity
0.00
Pascual, Capital ₱ 222,652.45 ₱ 222,652.45 0.00 0.00% ₱ 222,652.45 ₱ 222,652.45 0 %
0.00
Sumbrito, Capital 222,652.45 222,652.45 0.00 0.00% 222,652.45 222,652.45 0 %
0.00
Dicang, Capital 435,152.45 435,152.45 0.00 0.00% 435,152.45 435,152.45 0 %
0.00
Dumaguin, Capital 222,652.45 222,652.45 0.00 0.00% 222,652.45 222,652.45 0 %
0.00
Mones, Capital 222,652.45 222,652.45 0.00 0.00% 222,652.45 222,652.45 0 %
0.00
Total Partners' Equity ₱1,325,762.27 ₱1,325,762.27 0.00 0.00% ₱1,325,762.27 ₱1,325,762.27 0 %

TOTAL LIABILITIES AND

PARTNERS' EQUITY ₱1,389,060.47 ₱1,392,537.23 3,476.77 0.25% ₱1,392,537.23 ₱1,401,923.80 4,446.68 0.32%
 CCB Enterprises

Comparative Statements of Financial Position

As of Year Ended December 31, 2021, 2022 and 2023

Peso Peso
2021 2022 Change % 2022 2023 Change %
ASSETS
Current Assets (CA)
Cash and cash equivalents ₱950,842.51 ₱974,703.87 23,861.36 2.51% ₱974,703.87 ₱ 998,668.08 23,984.21 2.46%
Inventory 43,834.20 45,691.33 1,875.13 4.24% 45,691.33 47,651.87 1,960.55 4.29%
Total CA ₱994,676.61 ₱1,020,395.20 25,718.49 2.59% ₱ 1,020,395.20 ₱1,046,339.95 25,44.76 2.54%

Non-current Assets (NCA)

Property, Plant and
Equipment ₱ 402,307.20 ₱381,528.60 -20,778.60 -5.16% ₱ 381,528.60 ₱ 360,750.00 -20,778.60 -5.45%

TOTAL ASSETS ₱1,396,983.91 ₱ 1,401,923.80 4,904.67 0.35% ₱ 1,401,923.80 ₱1,407,089.95 5,170.39 0.37%

LIABILITIES AND
EQUITY
Current Liabilities (CL)
Income Tax Payable ₱ 45,048.50 ₱ 49,064.32 4,015.83 8.91% ₱49,064.32 ₱53,337.73 4,273.40 8.71%
Utilities Payable 24,644.65 25,507.21 862.56 3.50% 25,507.21 26,399.96 892.75 3.50%
SSS Payable 835.00 890.00 55.00 6.59% 890.00 890.00 0 0.00%
Philhealth Payable 200.00 200.00 0 0.00% 200.00 200.00 0 0.00%
PAG-IBIG Payable 493.50 500.00 6.50 1.32% 500.00 500.00 0 0.00%
Total Liabilities ₱ 71,221.64 ₱76,161.53 4,939.89 6.94% ₱76,161.53 ₱81,327.69 ₱5,166.16 6.78%

Partners' Equity
0.00
Pascual, Capital ₱ 222,652.45 ₱ 222,652.45 0 % ₱ 222,652.45 ₱ 222,652.45 0 0.00%
0.00
Sumbrito, Capital 222,652.45 222,652.45 0 % 222,652.45 222,652.45 0 0.00%
0.00
Dicang, Capital 435,152.45 435,152.45 0 % 435,152.45 435,152.45 0 0.00%
0.00
Dumaguin, Capital 222,652.45 222,652.45 0 % 222,652.45 222,652.45 0 0.00%
0.00
Mones, Capital 222,652.45 222,652.45 0 % 222,652.45 222,652.45 0 0.00%
0.00
Total Partners' Equity ₱1,325,762.27 ₱1,325,762.27 0 % ₱1,325,762.27 ₱1,325,762.27 0 0.00%

TOTAL LIABILITIES AND 0.35

₱1,396,983.91 ₱1,401,923.80 ₱1,401,923.80
PARTNERS' EQUITY 4,939.89 % ₱1,407,089.95 5,166.16 0.37%
Vertical Analysis Interpretation

The majority of the total asset is composed of cash. The entity does not keep raw materials

inventory, and maintains minimal inventory of finished goods inventory. It can be seen that capital

coming from partners’ contribution composes the majority of the net worth. This can be explained by the

fact that the entity relies very little on debt financing and keeps payables at the minimum.

Horizontal Analysis Interpretation

The majority of the total asset is composed of cash. The entity does not keep raw

materials inventory, and maintains minimal inventory of finished goods inventory. It can be seen that

capital coming from partners’ contribution composes the majority of the net worth. This can be explained

by the fact that the entity relies very little on debt financing and keeps payables at the minimum.
VERTICAL ANALYSIS

CCB Enterprise

Consolidated Income Statement

For the Years Ended December 31, 2019, 2020, and 2021

2019 % 2020 % 2021 %

Sales ₱1,360,800.00 100.00% ₱ 1,443,128.40 100.00% ₱ 1,530,437.67 100.00%
Cost of Goods Sold 735,979.76 54.08% 797,212.73 55.24% 832,849.80 54.42%
Gross Income ₱ 624,820.24 45.92% ₱ 645,915.67 44.76% ₱ 697,587.87 45.58%
Less: Operating Expense 105,874.14 7.78% 93,371.26 6.47% 96,941.25 6.33%
Income Before Tax ₱ 518,946.10 38.14% ₱ 552,544.42 38.29% ₱ 600,646.62 39.25%
Less: Income Tax Expense (30%) 155,683.83 11.44% 165,763.32 11.49% 180,193.98 11.77%
Net Income ₱ 363,262.27 26.69% ₱ 386,781.09 26.80% ₱ 420,452.63 27.47%

CCB Enterprise

Consolidated Income Statement

For the Years Ended December 31, 2022 and 2023

2022 % 2023 %
Sales ₱ 1,623,029.15 100.00% ₱ 1,721,222.41 100.00%
Cost of Goods Sold 868,135.22 53.49% 905,385.59 52.60%
Gross Income ₱ 754,893.93 46.51% ₱ 815,836.82 47.40%
Less: Operating Expense 100,702.96 6.20% 104,667.14 6.08%
Income Before Tax ₱ 654,190.97 40.31% ₱ 711,169.68 41.32%
Less: Income Tax Expense (30%) 196,257.29 12.09% 213,350.90 12.40%
Net Income ₱ 457,933.68 28.21% ₱ 497,818.77 28.92%
HORIZONTAL ANALYSIS

CCB Enterprise

Consolidated Income Statement

Peso
chan Peso
2019 2020 ge % 2020 2021 Change%
₱1,360,800.0
Sales 0 ₱ 1,443,128.40 82,328.40 6.05% ₱ 1,443,128.40 ₱ 1,530,437.67 87,309.27 6.05%
797,212.7
Cost of Goods Sold 735,979.76 797,212.73 61,232.97 8.32% 3 832,849.80 35,627.07 4.47%
₱
645,915
Gross Income ₱ 624,820.24 ₱ 645,915.67 21,095.43 3.38% .67 ₱ 697,587.87 51,672.20 8.00%
-
1
1
.
8
105,874.1 1 93,371.2
Less: Operating Expense 4 93,371.26 -12,502.88 % 6 96,941.25 3,569.99 3.82%
₱
552,544
Income Before Tax ₱ 518,946.10 ₱ 552,544.42 33,598.32 6.47% .42 ₱ 600,646.62 48,102.20 8.71%
Less: Income Tax 165,763.3
Expense 155,683.83 165,763.32 10,079.49 6.47% 2 180,193.98 14,430.66 8.71%
Net Income ₱ 363,262.27 ₱ 386,781.09 23,518.82 6.47% ₱ 386,781.09 ₱ 420,452.63 33,671.54 8.71%
For the Years Ended December 31, 2019, 2020 and 2021

CCB Enterprise

Consolidated Income Statement

 For the Years Ended December 31, 2021, 2022 and 2023

Peso Peso
Chan Chan
2021 2022 ge % 2022 2023 ge %
Sales ₱ 1,530,437.67 ₱ 1,623,029.15 92,591.48 6.05% ₱ 1,623,029.15 ₱ 1,721,222.41 98,193.26 6.05%
Cost of Goods Sold 832,849.80 868,135.22 35,285.42 4.24% 868,135.22 905,385.59 37,250.37 4.29%
Gross Income ₱ 697,587.87 ₱ 754,893.93 57306.06 8.21% ₱ 754,893.93 ₱ 815,836.82 60,942.89 8.07%
100,702.9 100,702.9 104,667.1
Less: Operating Expense 96,941.25 6 3,761.71 3.88% 6 4 3,964.18 3.94%
₱
600,646.
Income Before Tax 62 ₱ 654,190.97 53,544.35 8.91% ₱ 654,190.97 ₱ 711,169.68 56,978.71 8.71%
Less: Income Tax 180,193.9 213,350.9
Expense 8 196,257.29 16,063.31 8.91% 196,257.29 0 17,093.61 8.71%
₱
420,452.
Net Income 63 ₱ 457,933.68 37,481.05 8.91% ₱ 457,933.68 ₱ 497,818.77 39,885.09 8.71%

Vertical Analysis Interpretation

The total cost of goods sold makeup the bulk of sales at a percentage of 54.08% for the first year, leaving 45.92% for the gross profit. While these
are acceptable, it is to be noted that the operating expenses compose of 7.78% in the gross income, leaving 26.69% for income.

The business must find a way to increase income by either increasing sales or cutting costs. Also, while it can be seen that the net income
percentage is increasing, the growth is an acceptable percentage and should still be improved or maintained.

Horizontal Analysis Interpretation

The net income has an annual increase. The first year has 6.47% in net income but aggressively increased on the second year amounting to 8.71%.
Still, the enterprise should increase its sales volume, increase the production capacity and be more efficient or find ways to cut back on some costs.

FINANCIAL RATIOS
 a.) Test of Liquidity- These are the ratios used by the company and investors to see the ability of a company to meet its obligations as they

become due.

2019 2020 2021 2022 2023

Current Assets 945,196.07 969,451.53 994,676.61 1,020,395.20 1,046,339.95

Divided by: Current
Liabilities 63,298.20 66,774.96 71,221.64 76,161.53 81,327.69
14.9324 14.5182 13.3978 12.8657
Current Ratio 13.9659

The current ratio indicates that the business has enough current assets to settle its short-term obligations. The high current ratio is the

effect of the purely cash contribution of the partners. The figures will help the business in getting loans because of its high current ratio. This

indicates that the business has 14.93 pesos of current assets to settle every 1 peso obligation, indicating liquidity in the short run.

2019 2020 2021 2022 2023

Quick Assets 906,460.29 927,492.87 950,842.51 974,703.87 998,668.08

Divided by: Current
Liabilities 63,298.20 66,774.96 71,221.64 76,161.53 81,327.69
14.3205 13.8898 13.3505
Acid Test Ratio 12.7979 12.2798
Acid test ratio measures the capability of the business to pay its short-term obligation without the need to sell inventories. The

figures indicate that the business is highly liquid. The business has 13.56 pesos readily-available assets to pay for every 1 peso of obligation. This

means that company is liquid enough to pay obligations with quick assets.
b.) Activity/ Efficiency Ratios – These ratios measure the efficiency with which the resources of a firm have been employed. These indicate

the speed which assets are being turned over into sales.
 The inventory turnover indicates efficient management of inventory by the enterprise. This ratio indicates how long it takes for the

enterprise to convert its inventory to cash.

c.) Leverage Ratios – These are ratios are some of the several financial measurements that look at how much capital comes in the form of

debt (loans), or assesses the ability of acompany to meet financial obligations.

2019 2020 2021 2022 2023

Total Liabilities 63,298.20 66,774.96 71,221.64 76,161.53 81,327.69

Divided by: Total Equity 1,325,762.27 1,325,762.27 1,325,762.27 1,325,762.27 1,325,762.27
Debt-Equity Ratio 0.0477 0.0504 0.0537 0.0574 0.0613

The ratio shows that the CCB Enterprise is financially stable, as it can support its operations internally. A ratio of less than one implies

that the company is conservative which means that the business is not inclined in using debt to increase profit. This is also because the starting

capital came purely from partner contributions. This shows that the company is not debt-reliant.

d.) Probability ratios- These shows the combined effects of liquidity, asset management, and debt management on a firm’s operating results.

This ratio measures the earning ability of a company and the extent to which invested funds are being used effectively. This also measure

the results of business

2019 2020 2021 2022 2023

Gross Profit 624,820.24 645,915.67 697,587.87 754,893.93 815,836.82
Divided by: Net Sales 1,360,800.00 1,530,437.67
1,443,128.4 1,623,029.15 1,721,222.41
 0
0.4592 0.4558 0.4651 0.4740
Gross Margin Ratio 0.4476

The gross margin ratio of the enterprise shows that the gross profit earned is sufficient to recover all operating expenses.

2019 2020 2021 2022 2023

Current Assets 945,196.07 969,451.53 994,676.61 1,020,395.20 1,046,339.95

Less: Current Liabilities 63,298.20 66,774.96 71,221.64 76,161.53 81,327.69

Net Working Capital 881,897.87 902,676.57 923,454.97 944,233.67 965,012.26

The working capital measures the ability of the business to meet its current obligations with its current assets. The business has high net

working capital, which indicates that the business has available capital to expand without the need for additional investments.

2019 2020 2021 2022 2023

1,443,128.4
Net Sales 1,360,800.00 0 1,530,437.67 1,623,029.15 1,721,222.41
1,392,537.2
Divided by: Total Assets 1,389,060.47 3 1,396,983.91 1,401,923.80 1,407,089.95
Asset Turnover Ratio 0.9797 1.0363 1.0955 1.1577 1.2232
 The Asset Turnover Ratio measures the overall efficiency of company in generating sales using its assets. It shows the efficiency of

management while other things are held constant. CCB Enterprise has a high total asset turnover ratio which means that the business is generally

efficient in utilizing its assets.

Return on Sales 0.2669 0.2680 0.2747 0.2821 0.2892
 The computed ratios show how much of sales pertain to income. The 26.69% ratio on the first year indicates that costs and expenses

should be lowered, as the provision for income is low.

2019 2020 2021 2022 2023

Net Income 363,262.27 386,781.09 420,452.63 457,933.68 497,818.77
Divided by: Total
Assets 1,389,060.47 1,392,537.23 1,396,983.91 1,401,923.80 1,407,089.95
Return on Assets 0.2615 0.2778 0.3010 0.3266 0.3538

The Return on Asset ratio shows the income generated for every peso invested. For the business' first year of operation, it will be able to

generate 26 centavos for every peso of its investment. The figures indicate that there is a need for the business to improve on its efficiency.

2019 2020 2021 2022 2023

Net Income 363,262.27 386,781.09 420,452.63 457,933.68 497,818.77
Divided by: Partner's
Equity 1,325,762.27 1,325,762.27 1,325,762.27 1,325,762.27 1,325,762.27
Return on Equity 0.2740 0.2917 0.3171 0.3454 0.3755
The return on equity indicates the amount of income generated per peso of book value of equity of the enterprise.

Payback Period

Payback period is the length of time, expressed in years to recover the initial cost of investment. It focuses on the return of

investment rather than return on investment. The shorter the payback period, other things held constant, the greater the projects

liquidity. Since cash flows expected in the distant future are generally riskier than near time cash flows, the payback period is often

used as an indicator of the project’s riskiness. Thus this measure addresses the concern on risk on investment rather than its
profitability. Therefore, it only implies that the shorter the Payback Period, the lesser will be the risk on investment, hence; more

favorable.

The proponents used the payback period in its traditional computation because it has more advantage than the discounted

method of computation. For the proposed business, it is computed by dividing the total project cost over the net cash inflow. Since the

net cash inflow of the firm is uneven, the excess of total net cash flow to date which is enough to cover the entire project cost is

divided over the net cash inflow of the year which the excess have been incurred. The following computation shows the payback

period of the proposed business.

Year` * Net Cash Flow Cash Needed (Excess) Cash to date Payback Period
578,459.13 384,040.87 1.00
2019 384,040.87
407,559.69 170,899.44 791,600.56 1.00
2020
441,231.23 -270,331.79 962,500.00 0.39
**2021
478,712.28
***2022
518,597.37
***2023
Payback Period 2.39
*Net Cash Flow = Net Income After Tax + Depreciation
** After year 2022 Cash Inflows, we only need Php 170,899.44 to complete total initial investments of the partners. Thus, we have
excess cash of Php 270,331.79
*** Since the initial investments of the partners are completed on the year 2021, cash to date of year 2022 and 2023 will be
disregarded.
Total Initial Investments = Php 962,500

SOCIO ECONIMIC STUDY

INTRODUCTION

Profit maximization is one of the major aims of each business firmthrough determining the best output and price levels. This

part of the study helps the proponents to identify the specific contribution of the project (business) to the community, industry, and

government and to the environment.

The objective of this aspect of the study is to determine how the entity will contribute to the betterment of the society in terms

of employment and environmental awareness.

CONTRIBUTION TO CUSTOMERS

Aside from the good taste that the consumer can experience, the nutrition that they can get from eating cacobapastillas would

be their greatest advantage. CCB Enterprise will produce/manufacture a snack that its main ingredients are fruits and vegetable that

will boost the health of the consumer, the good thing is that cacobapastillascacobapastillas can be consumed, even by the kids aged 5

years old and above. The convenience of acquiring or buying a product to the customers is also the enterprise’ priority, customers can
order pastillas through phone calls or text messages, and will be delivered as soon as possible. Customers can also drop by at the

enterprise to buy cacobapastillas.

CONTRIBUTION TO SUPPLIERS

The main suppliers of the proponents are the local public market and grocery stores. Local stores because of the ingredients

used are perishable and can be spoiled and turned into waste if to buy outside Baguio City. Another thing, since the enterprise is still

in the early age in business world, it is more appropriate to buy locally to save cost.As a regular customer of them, products such as

carrot, coconut, banana, condensed milk and sugar, which are the main ingredients of cacobapastillas. This can help the suppliers to

boost their sales than their normal sales.

CONTRIBUTION TO GOVERNMENT

First and foremost, the proponent’s enterprise will contribute to the income of the government through remitting the right

amount of tax, for both income and business tax, to the government. Second is providing job to individuals who cannot be hired by

largerbusiness. By this, the enterprise can give a little help to reduce poverty, which is one of the major problems of our government.

CONTRIBUTION TO COMMUNITY

Combination of carrot, coconut and banana as a flavor is something that has never been made by any one. Offering something

new to the community is one of the proponents’ contributions to the community. Another is giving opportunities for unemployed
individual to have a job, the enterprise would also give a percentage of sale as a commission to people who help the enterprise get

more customers. Giving commission or pay will not be limited to the employees but will be open to all people who are willing to have

their source of income.

HEALTH AND ENVIRONMENTAL CONCERNS

In today’s generation, health is number one concern when it comes on deciding what food to buy and/or eat. Cacobapastillas is

a healthy product that every individual, at any age more than 5 years old can consume. All of the main ingredients of the product

(carrot, coconut and banana) are rich in antioxidant that makes it perfect for snack time and dessert.

Helping the environment by reducing the pollution through reduction of usage of plastic in packaging. CCB Pastillas will use

patillas paper wrapper instead of plastic.

 ORGANIZATIONAL AND MANAGEMENT STUDY

Introduction
 This chapter covers the implementation of the project, its organizational and managerial structure proposed by the proponents.

This chapter is an important part of the study as to how the business will operate and who are the persons responsible for keeping the

business in schedule. This chapter also reflects the discussion about the basic considerations, the form of ownership, organizational

chart, the officers of the enterprise and other key personnel and the general employment regulation of the business.

Efficient and effective management will lead the enterprise to attain its goals and this could be a stepping-stone towards

building its success.

A. BASIC CONSIDERATIONS

The primary purpose of CCB Enterprise is to earn profit and to produce unique and healthy products. The product of the

enterprise is CacobaPastillas that is made out of carrot, coconut, banana and a mixture of sugar and milk. The main ingredients of the

product are fruits and vegetable, which makes it healthier.

The proponents decided to advertise its product through floating flyers to possible customers, use of social media to share the

product’s features, and to offer free taste of the product to promote that their product is tasty and healthy as well. In order to produce a

product, they will need three (2) personnel;this is for the production of CacobaPastillasas well as the filling and finishing of the

product. Supervision of the five owners will be present on those three personnel.

B. FORM OF OWNERSHIP
 The form of ownership of the business is general partnership. The partners of the partnership are Kumar IsraelPascual, Justin

Keith Sombrito, Shane D. Dicang, Romelei S. Dumaguin and Vhernadette G. Mones. The partners will share equally on the profits

and losses of the enterprise, also with the enterprise’s liabilities incase of insolvency. Three (2) partners will act as General Managers

for the proposed project, the other partners will also be part of the management but will focus on the accounting, delivery of products

and production of product for the firm.

C. ORGANIZATIONAL CHART

Partner

Manager (2)

Partner Partner & Employee

Production Staffs (2)
Deliverer (1)

Partner
Accountant (1)
D. OFFICER AND KEY PERSONNEL

The five (2) partners will act as the general manager of the enterprise. One personnel will be hired by the enterprise for the

production of the products. One (1) partner willbe involved in production, another for delivery, and another one as an accountant of

the enterprise. Supervision and assistance of the managing partners will be present in the production and delivering of the product. The

partners, to assure the quality of the raw materials to be bought, will do the purchasing of raw materials.

1. Managing Partner

Partners are responsible for the overall management and operation of the business. Also, they are the one responsible for

creating big decisions that will affect the business as a whole such as finance, production, services and research. Tasks and duties are

assigned to each partner such as sales, production and finance management.

Without prejudice to such powers granted by the law, partners shall have to power to:

 Make rules and regulation for the management of the business and affairs.

 To purchase, receive, take and otherwise acquire in the name of the business properties, rights, or privileges including

investments.
  To carry the burden of business liabilities.

 To implement and amend the by-laws of the business.

 To conduct regular or special meeting.

 Conduct research on how to maintain and improve the profitability of the business.

 To keep records of all business transactions.

 To approve submitted leave forms of employees, letter of resignation and/or letter of absence without permission.

2. Accountant

Job description:

 Prepare the budget every year and analyze the variances

 Record all inflows and outflows of resource

 Book keeping

 Preparation of Financial statements for external and internal purposes

Job Qualification:

 Must have a Bachelor’s degree in Accounting

 Certified Public Accountant

  Computer-literate

 Good in oral and verbal communication

3. Production Staff

Job description:

 To prepare the equipment to be used for production.

 To check and ensure that equipment are in good condition regularly.

 To maintain neatness and organization of workplace during and after the production.

 To manufacture finished products with good quality.

 To deliver the finished products to the waiting area for pick-up by the customer or by the delivery personnel for delivery.

Qualifications:

 At least high school graduate

 18 years old and above

 Hard working and trustworthy

  Can establish good working relationship with others

 Can work under pressure

4. Delivery Personnel

Job description:

 To keep goods to be delivered in good condition

 To keep the delivery equipment clean and in good condition

 To be intermediary between the enterprise and the customer regarding customer suggestions

 Keeping the cash paid by customers safe until remitted to managers

Requirements for application:

 Bio data

 NBI clearance

 Barangay clearance

 Resume with 2x2 ID pictures

 Medical Certificate
  Certification from the previous employers if applicable

E. ENTERPRISE POLICY

1. Attendance

The work schedule of employees is from Monday to Saturday of which the partners and employees are required to

work on their work assignments. Punctuality is very much encouraged to all the employees, both managing and industrial, to

maximize the time of work and to minimize, or as much as possible no deductions will be incurred due to tardiness. To

monitor this, all employees are required to log in and out in the logbook personally. They must strictly refrain from logging in

and out of other’s name. The logbook is strictly monitored for security purposes. In cases of emergency absences of the

employee, he or she must inform the managing partner before an hour of the first hour of working duties. The reason is for the

managing partners can make adjustments to avoid undue disruption of work. Employees are required to inform and secure

permission from the managers regarding forthcoming absences. At least one (1) week before date of intended absence.

2. Hours of Work

All of the employees must work for eight (8) hours everyday excluding Sundays and meal period. Working days are

from Monday to Friday. The business starts to operate from 8:00 am - 12:00 am and 1:00 pm – 5:00 pm.

3. Meal Period and Rest Period

 Each employee and partner are given one (1) hour meal period. The specified time for their meal period is from 12:00

pm to 1:00 pm. They are also given a 15-minute rest period in the morning and in the afternoon. The specified time for their

rest period in the morning starts at 10:00 am and 3:00 pm in the afternoon.

4. Compensation and Benefits

The compensationof the employees is based on the minimum wage here in Baguio City. The compensation is given

every 15th and 30th of the month in conformity with the usual salary period. If the scheduled payday falls in a Sunday or a

Holiday, then the compensation will be given in the preceding working day. All employees are entitled to benefits such as SSS,

Phil Health and Pag-ibig Fund.

5. Absences

All absences other than those due to illness must be covered by previously approved leave application. Excessive

absence without valid reason may be a ground for termination of which majority of the partners must agree. All absences shall

be deducted on the employee’s compensation automatically during the payroll period when the absence occurred.

6. Sanitary Management
 Neatness of the working place must me checked by the management every time during the day. Segregation of wastes

from biodegradable, non-biodegradable and recyclable is a must.

7. Dress Code and Cleanliness

All partners and employees, especially the production staffs, must wear their proper uniform and apron including

hairnets and gloves. Employees are not allowed to chat with one another while working. Also their hands must be sanitized

before starting their job.

8. Resignation

Employees are allowed to resign at their will, provided that they must notify the management in writing two weeks

prior the planned date of resignation. The resignation will be in effect two weeks after the submission of the resignation letter

to allow the management to find another employee to replace him or her.

9. Termination

Any employee shall be subject for termination if he/she commit fraudulent act, has alcohol or illegal drug in-take

during office hours, become negligent of his/her responsibilities and duties that can widely affect the operation of the business.
 2018
Activities
Jan Feb Mar Apr
Project Feasibility
Study        
Formation of
Partnership &
processing of legal
requirements        
Financial and fund
procurement        
Site preparation,
equipment purchase
and installation
       
Accounting System
Installation        
Personnel Hiring and
training        
Purchase of Raw
Materials        
Commencement of
Operations        
 May Jun Jul Aug Sep Oct Nov Dec
               
               
               
               
               
               
               
               
 ACCOUNTING SYSTEM STUDY

An accounting information system is a formal process for collecting data, processing the data into information, and

distributing that information to users. The main purpose of an accounting information system is to collect, store, and process financial

and accounting data and produce informational reports that managers or other interested parties can use to make decisions.

This aspect of the study presents the business cycles of the enterprise as well as the accounting system used and its internal

controls necessary for proper communication and relaying of information from one cycle to another. This also includes the business

forms and papers used during business transactions. The cycles include the revenue or receipt cycle, purchase and expenditure or

disbursement cycle, the payroll cycle and the conversion cycle. All of these cycles are interdependent.

The cycles are represented with flowcharts that showcase the simplified system of the business. Along with these flowcharts

are the step-by-step process of each cycle and their corresponding internal controls.

The internal control system of a business is very important in order to maintain an efficient communication and information

security within the organization. An effective internal control system also aids in the smooth flow of business operations. It is

therefore necessary that an internal control system be established and be implemented well. This aspect also discusses the policies of

the company and the implementation these policies.

CHART OF ACCOUNTS

The chart of accounts is a financial organizational tool established by most companies. This tool provides a complete listing of every

account used in a company‘s accounting system. These accounts may be classified as Assets, Liabilities and Equity. Such are

considered the real or permanent accounts. Some accounts are considered nominal or temporary accounts and these are the revenues

and expenses.

Table no. Chart of Accounts

Assets Account Title Normal Balance

Current Assets
Cash and cash Debit
equivalents
Inventory Debit
Non-Current Asset
Property,Plant and Debit
Equipment
Land Debit
Liabilities
Income Tax Payable Credit
Utilities Payable Credit
SSS Payable Credit
PhilHealth Payable Credit
PAG-IBIG Payable Credit
Partner’s Equity
Dicang, Capital Credit
Dumaguio, Capital Credit
Mones, Capital Credit
Pascual, Capital Credit
Sombrito, Capital Credit
 Expenses
Cost of Goods Sold Debit
Purchases Debit
Raw Materials Debit
Inventory
Direct Labor Debit
Factory Overhead Debit
Advertising Expense Debit
Office Supplies Debit
Taxes and Licenses Debit
Depreciation Expense Debit
Utilities Expense Debit
Percentage Tax Expense Debit
Revenues
Sales Credit
Sales discount Debit

DESCRIPTION OF ACCOUNT TITLES

Account titles are representations of the actual transactions that occurred during the business operations. These accounts are

classified into different types and are treated uniquely when increased or decreased depending on the nature of the transactions

recorded. Some are debited when increased and credited when decreased, while some are treated vice versa. The following are the

description of account titles and their corresponding treatment.

Assets
 These are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions. They

may be current or noncurrent, tangible or intangible.

Cash and cash equivalents- comprise of any item with monetary value that a bank will accept for deposit and immediate credit. Cash

includes coins and currency, personal checks, bank drafts, and money orders. Cash equivalents are short term, highly liquid

investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk in changes in value.

Cash and cash equivalents must be unrestricted in use. This means that it must be readily available in the payment of current

obligations and not be subject to any restrictions, contractual or otherwise. The cash and cash equivalents account is presented in the

balance sheet and classified under the current portion.

Inventory- is the account title for materials used directly in the production process. These include all materials used in the

manufacturing operations that are physically incorporated in the production of other goods and which can be traced directly to the end

product of the production process. Inventory is presented in the balance sheet and classified under the current assets portion.

Property, Plant and Equipment- are the tangible items that are expected to be used in production, for rental, or for administration.

This can include items acquired for safety or environmental reasons. Property, plant and equipment items are commonly grouped into

classes, which are groups of assets having a similar nature and use. Items grouped within a class are typically depreciated using a

common depreciation calculation. Property, plant and equipment is presented in the balance sheet under the non-current assets portion.
Accumulated depreciation- is the account for the aggregate periodic cost of using a depreciable plant asset. The acquisition cost of

depreciable plant asset should be allocated as expense over the useful life of the related plant asset. As the economic benefits

embodied in an asset are consumed by factors such as wear and tear, over usage, obsolescence and the like, the carrying amount of the

asset is reduced to reflect this consumption. Accumulated depreciation serves as a contra account for property, plant and equipment

and is presented in the balance sheet, classified as a non-current asset.

Liabilities

They are present economic obligations and probable future outflows of the company. They may be current or noncurrent.

Income Tax Payable- is the amount of income tax which is to be remitted to the BIR on or before the 15th day of April every year.

This is the amount of income tax payable for the year as determined by applying the provisions of the enacted tax law to the taxable

income. Taxes payable is presented in the balance sheet and classified under the current liabilities portion.

Premiums Payable- represents the amount of employer contribution to SSS, PhilHealth, PAG-IBIG, and other employee benefits

which are not yet remitted. Separate accounts are given to each employee benefit contribution: SSS Payable, PAG-IBIG Payable,

Philhealth Payable. The Premiums payable accounts are presented in the balance sheet and are classified as current liabilities.

Utilities Payable- is the account used for unpaid bills of utilities expenses such as water, electricity and communications.

Partner’s Equity
It represents the partner‘s claim against the assets in the partnership. It comprises the capital contribution and withdrawals by the

partner. The partner‘s equity is presented in the balance sheet and classified under the equity portion.

Revenue

They are the fees earned from selling products (Manufacturing business).

Sales- is a nominal (temporary) account used to summarize sale of goods. It is presented in the income statement.

Sales Discount- is a nominal (temporary) contra-revenue account used for recording discounts on sales.

Expenses

They are the reduction in value of an asset as they are used to generate revenue.

Cost of Goods Sold- is the direct costs attributable to the production of the goods sold in the company.

Purchases- is the account that represents acquisition of new materials to be used in the production of the product.

Direct Labor- the account that contains the amount of salaries and wages paid to the workers who are directly related to the

manufacturing operations and such cost is allocated directly to the units of production.

Factory overhead- refers to manufacturing cost which cannot be classified as either direct materials or direct labor.
Advertising expense- refers to the cost of publication on newspapers, radio, television and other media incurred in promoting the

business which are not done prior to the actual business operations. It is presented in the income stamen as an expense.

Office Supplies- these are the materials that are consumed within an office setting during normal business operations.

Taxes and Licenses- is the account that refers to business taxes, licenses, and other fees due to the government. Taxes and licenses is

presented in the income stamen as an expense.

Depreciation expense- is a nominal account that refers to the portion of the total cost of fixed assets allocated to current operations.

business. It is shown in the income statement under the expense portion.

Utilities expense- refers to the cost of electricity and water consumed during the current accounting period. It is presented in the

income stamen as an expense.

Percentage Tax Expense- is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course

of trade or business and are exempt from value-added tax (VAT) under Section 109 (w) of the National Internal Revenue Code, as

amended, whose gross annual sales and/or receipts do not exceed Php 1,919,500 and who are not VAT-registered.

Premium expense- these are the amounts paid to SSS, PhilHealth, and PAG-IBIG as contribution to its fund. These accounts are

separated according to the contribution it is to be paid.

 REVENUE/RECEIPT CYCLE

Cashier
( Managing Partner) Accountant

Take customer orders Receives order slips and

official receipts from
cashier.

Check product availability

Verifies transactions
 Available Not available

Update Recheck
records in sales transaction
journal with cashier

Prepare an advance order slip in duplicate copies

Prepare an order slip in duplicate copies
File order slips
and official
receipts.

Enter transaction into records, receive

payment and print official receipts in
duplicate.

Customer
Official Receipt

Accountant
 This cycle involves the sales transaction and the collection process. It starts with the cashier, who receives customer orders,

checks for product availability and prepares the customer order slip if the orders are available and prepares advance orders slip when

not yet available. The slip is printed in duplicate, one copy for the productions staff and one for the accountant. The customers are then

billed with the amount to be paid. The enterprise applies cash basis accounting. Upon cash payment, the collection is entered into the

cash box and an official receipt is given, printed in two copies, one for the accounting records and one for the customer.

The accountant, upon receiving the customer order slip and the official receipt, verifies the transaction. If found to be in proper

order, the transaction is recorded in the sales journal and the order slips and official receipts are filed. If discrepancies are found, the

accountant checks with the cashier to consolidate. Afterwards, the sales journal is updated and the order slip and receipt is filed.

Internal Control
Authorization. Utmost care and diligence should be observed by the cashier in recording sales in the cash records. In case of mistakes

in the recording, the accountant should help in checking and verifying transactions.

Execution. Delay in the delivery of the product to the customer must be avoided at all times to minimize customer complaints. The

specified procedures in the process must be followed properly to avoid unnecessary delays and unintended misplacement of receipts

and other documents.

Recording. The same care and diligence in recording of transactions in the cash records should be practiced in recording transactions

in the sales journal and accounts receivable records, if not more. The management can control the recording function by using

established written procedures, periodic checking and verification, and reconciliation of control totals

Access to assets. The most liquid asset of all is cash. It is also the most susceptible to theft and mishandling. The management should

therefore put up sufficient physical safeguards to protect cash, and appropriate measures to protect and ensure accuracy of

transactions.

EXPENDITURE CYCLE
 An expenditure cycle is a set of purchasing decisions and actions. It's the repetitive process of creating purchase orders and

ordering goods and services, receiving these items, approving the invoices for these items and services, and paying the invoices.

Production manager decides when they need to canvass raw materials and compare pricing and suppliers; next, they make a purchase

and choose a method of payment.

The purchased raw materials will be given to the production manager to be utilized for production and the payments for

billings are to be handled by the accountant. This would be settled according to terms and contracts of company and the supplier.

Internal Control

Authorization: Only the person in charge of purchasing materials can do the requisition slip given by the production manager. This is

to ensure that separations of duties are made and only authorized transaction is done.

Execution: The materials should be bought according to the quality and pricing of the supplier. Delivered materials are held for

inspection before storing or transferred for production. Other controls shall be applied in paying the bills for the materials.

PAYROLL CYCLE
 Update and submit
Employee Profile DTR

Employee Accountant
Prepare Pay
Payroll Process
slip and pay
salary

Payroll Cycle

This cycle includes updating employee profile of newly hired personnel, updating and submission of daily time record (DTR),

the preparation and recording of payroll and the distribution of pay slip and salary to the employee. The documents necessarily

involved in this cycle are the employee’s profile, time cards/DTR, timesheet details and payment details.

The cycle starts with the recording of the employee details. The employee updates the daily time record and submits it

together with the employee details to the accountant. After the verification and computations the payment details is recorded. The pay

slip is then checked and approved by the managing partner and be given to the employee together with his salary.

The documents aforementioned are reviewed thoroughly by the accountant. The managing partner does the final review and

verification of the DTR, attendance sheet and payroll sheet. Upon approval, the managing partner would sign the pay slip.

The accountant would then release funds for necessary disbursements. After releasing funds, the accounting books are

updated.
Internal Control

Transaction Authorization.The management must set standards of hiring new applicants. The managing partner must scrutinize

applicants well and extract those who are well-versed with the job requirements. By doing so, the management would minimize costs

for training and minimize erroneous works if an impotent applicant is hired. One thing that must also be considered when hiring an

applicant is his personal background. To ensure the legality of all of his transactions, legal documents and clearances from

government authorities is a must from the applicant.

Transaction Execution.The managing partner must closely monitor the employee’s work performances and an evaluation must be

done. The management must also consider merits and demerits to motivate employees to perform well.
CONVERSION CYCLE
 Productions
Manager

RAW MATERIALS FACTORY SUPPLIES

INVENTORY CONTROL

Raw Materials and Factory Supplies

COOKING AND MIXTURE

PREPARATION
 FINISHED GOOD

Conversion Cycle
This cycle is concerned with the conversion of raw materials into finished products. It starts with the production manager, one

of the partners, who determines and authorizes the quantity of raw materials and factory supplies to be used. The said amount of

materials and supplies will be passed to the production area, where it will be processed into finished goods. These finished products

will then be reported back to inventory control and to the productions manager.

Internal Control
Authorization. To ensure uniform and consistent product taste and quality, only the production manager should be able to authorize

the proper quantity of materials to be brought out from the storeroom and be used in production.

Execution. Only the designated trained persons will be allowed to prepare the product to ensure the consistency of product taste and

quality.
 The following are the essential documents that are used in the business operations. These documents are used in the

transactions between the enterprise and customers, between the enterprise and suppliers and between the enterprise and its employees.

1. Order Slip

CCB Enterprise
Upper Brookside, Baguio City

ORDER SLIP
No.: ___________
Date:___________

Name of Customer:________________________________

Quantity Price Total

2. Purchase Requisition

CCB Enterprise
Upper Brookside, Baguio City
PURCHASE REQUISITION
No:__________
Date:__________

Description Quantity Price Total

CCB
CCBEnterprise
Enterprise
Upper
Upper
Brookside,
Brookside,
Baguio
Baguio
City
City
Date needed:_____________________
REQUEST
PURCHASEFORM
ORDER
Name:________________________
Vendor:__________________ Prepared by:_______________________
P.O.
No:______________
No:__________
Position:______________________ Approved by:_______________________
Address: ___________________________________ Date:__________
Date:__________
3. Purchase Order
Request s the disbursement of funds in the sum ofQuantity
Description (amount in words)_______________
Price Total
3. __________________________ ,(P___________) for the settlement of the following: Purchase Order

Supplier/Vendor Invoice No. Total

4. Request Form

Date needed:_____________________ TOTAL:

Prepared by:_______________________
Signed by:_______________________
Approved by:_______________________
Approved by:_______________________
 CCB Enterprise
5. Receiving Report Upper Brookside, Baguio City
OFFICIAL RECEIPT
CCB EnterpriseO.R. No:__________
Upper Brookside, Baguio City Date:__________
6. Official Receipt Received From:_________________________________
RECEIVING REPORT
Received by:__________________________ No:__________
Description Quantity Price Total
Checked and inspected by:______________________ Date of receipt:___________
Date of checking and inspection:___________

Description Quantity Price Total

Senior citizen TIN: Total Sales
OSCA/PWD ID No.: Sales Subject to PT
Exempt Sales
Signature over Printed Name Less: SC/PWD Discount
Amount Due

Shipper:__________________________
Carrier:__________________________ Received by:___________________________
Invoice No.:_______________________
7. Employee Profile

CCB Enterprise
Upper Brookside, Baguio City
2x2 ID
EMPLOYEE PROFILE
picture
Name:
Age:
Position:
Address:
Birthday:
Contact No.:
Email Address:
Civil Status:
Nationality:
SALARY:
DEDUCTIONS:
BENEFITS:

SIGNATURE OVER PRINTED NAME

8. Payroll Sheet

CCB Enterprise
Upper Brookside, Baguio City

PAYROLL SHEET

Name Earnings Deductions Net Pay

Regula Overtime Other Total Cash
r Pay Pay s Advance
1.

CCB Enterprise
9. Pay Slip Upper Brookside, Baguio City
PAY SLIP
FOR THE PERIOD ENDED:___________________________

Date:______________
Employee:________________________

Gross Earnings:
No. of Days: ___________
Multiply by: Minimum Wage Php___________
Total: Php___________
Less: Deductions
PAG-IBIG Php__________
SSS __________
PhilHealth ___________ ___________
NET PAY Php___________

Prepared by:______________________
Approved by:______________________
BOOKS OF ACCOUNTS

These are where all business transactions are recorded and posted. These are essential in making the financial statements of the

enterprise. They are strictly confidential and are only accessed by authorized personnel.

General Journal

This is also called as the book of original entry. This is where business transactions are initially recorded. The purpose of this

journal is to provide a permanent and complete record, arranged in chronological order for future reference, of all business

transactions of a firm.
General Ledger

This is an accounting

record a business uses to keep

track of financial transactions in a

chronological order. With the use

of this, transactions are categorized

and summarized according to their

nature and classification.

APPENDICES
APPENDICES