A BUSINESS PLAN ON THE FRANCHISE OF AQUABEST WATER

REFILLING STATION AT SAN JOSE ST., DUMAGUETE CITY

A Business Plan Presented to the Faculty of the

College of Business Administration

Negros Oriental State University

Dumaguete City

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Business Administration

Major in Financial Management

By:

Albina, Jessa May B.

Bacalso, Jacqueline A.

Cataylo, Edward S.

Distrito, Yasmin

Mancao, Jeaneth

February 2021
 Table of Contents

Title Page
Acknowledgement
Table of Contents
List of Schedules

INTRODUCTION 1
CHAPTER 1 EXECUTIVE SUMMARY
A. THE BUSINESS 2
B. MISSION STATEMENT 2
C. VISION STATEMENT 2

CHAPTER 2: DESCRIPTION OF THE PRODUCTS

AND SERVICES 3
A. PRODUCT PICTURES WITH DESCRIPTION 3
B. MANUFACTURING PROCESS 4
CHAPTER 2: MANAGEMENT TEAM 8
A. INITIAL INVESTMENT 8
B. ORGANIZATIONAL CHART 8
C. JOB QUALIFICATIONS 9
D. JOB DESCRIPTION 9
E. SCHEDULE OF WORKING DAYS 14
CHAPTER 3: COMPETITION 16

CHAPTER 4: MARKETING PLAN 22

MARKET STRATEGIES 22
MARKETING MIX 25
CHAPTER 5: FINANCIAL ASPECT
STATEMENT OF FINANCIAL ASSUMPTIONS 28
SCHEDULE OF FINANCIAL STATEMENTS 30

CHAPTER 6: APPENDIX
TRANSIMITTAL LETTER 59
QUESTIONNAIRE 60
FLOOR PLAN AND SITE LOCATION 62
CURRICULUM VITAE 63
 LIST OF FIGURES

Description Page
Organizational Chart 11
Gantt Chart 15

LIST OF SCHEDULES

Description Page
Profit and Loss Statement 30
Balance Sheet 31
Cash Flow Operations 32
Sales 33
Salaries 33
SSS, PHIC, and HDMF 34
Supplies Inventory 35
Property, Plant and Equipment 36
Accumulated Depreciation 37
Leasehold Improvements 38
Equipment 39
Taxes and Licenses 40
Electricity, Lights and Water 41
Depreciation Expense 42
Repair and Maintenance 43
Insurance 44
Vat Payable 44
Acknowledgement

The researchers are indebted to so many people who have helped and shared their

ideas for the conceptualization of this business plan.

First of all, we would like to thank God for giving us the strength, wisdom and

knowledge to make this project a successful one. Thank for His guidance that in

every meeting, especially during whole days and overnights that we had, He never

failed to protect and guide us.

We would like to express our heartfelt gratitude to Mr. Lanvin Calugcugan, for

giving us tips to make everything valid. Thank you so much for entrusting us this

project so we may be able to prepare ourselves in the future study and in molding

us to become more responsible and effective business students. To Mr. Kenneth

John Bohol, who solely took on our financial statements.

To our parents, who never get tired of supporting us throughout this project, who

never fail to give us pieces of advice, they are the reason why we finished this

project.

Most of all, we would like to thank ourselves for working hard to make this business

plan possible regardless of all unforeseen circumstances.

Together, we sincerely acknowledge and give thanks to these people above who

have brought success on our study. May God bless us all!

-THE RESEARCHERS
INTRODUCTION

About 3.4 million die annually from drinking contaminated water according to

World Health Organization (WHO). And millions of Filipinos get sick because of

the same reason. Diseases such as diarrhea, amoebiasis, cryptosporidiosis and

cholera are some you can get when drinking untreated or unclean water. The reason

of this problem is the lack of good water system in the Philippines. Even in the

capital Manila, only about three fourths of the population receives piped water from

the municipal authority. And for places outside Manila fewer people have access to

clean water distribution. These families need to find another water sources if they

want to avoid diseases brought by foul, contaminated water available in their

neighborhoods. While in provinces, the situation is worse. A lot of people still rely

on wells, water pumps or even rivers for their daily water consumption. Because of

these problem thousands of water refilling station appeared in Philippine landscape.

These shops began as privately-run community sources, where consumers would

bring containers and fill them for a per-gallon fee that is a small fraction of

commercially bottled water’s cost. Demand is high that most stores now offer home

delivery for regular customers. Most shops produce between 3,000 to 12,000 liters

of water per day. He supplies for these shops comes from municipal

concessionaires. Entrepreneurs invest in treatment equipment to further purify their

product before selling.

Water that are sold by water refilling stations are cheaper and more convenient

solution to the public’s drinking water needs than bottled water or the use of

household filters. There is an increasing demand in water refilling stations that sell

purified water. The quality of purified water conforms to the national standards for

drinking water and is even better than quality of water produce by traditional water

supply systems in terms of removed impurities.

1
CHAPTER 1

EXECUTIVE SUMMARY

a) The Business

The demand for clean water is a must now especially when the world has been hit

by the COVID-19 Virus. It is now essential that everyone should have the access

of clean water. Aqua best provides torn key solutions designs to meet clients need.

It dedicates to give efficient products and services designed to fit the needs of

various applications providing quality, service, value and technology. Aqua best is

also the leading project provider of water treatment and process system solutions.

Aqua best offers “The Grander Effect” in which it improves the water quality that

changes the inner structure of water and returns the water molecules to a highly

order state, making the water more stable. It also involves a field effect generated

by highly structured water developed by Johan Grander. The precise method by

which he produces information water is a trade secret. The key revitalized water

properties are enhanced in shelf life, in solvent powder and in microbiological

properties. Aqua best would be soon located at San Jose St., Dumaguete City.

b) Mission Statement:

To provide turnkey solutions designed to meet client's need. Dedicate ourselves to

give efficient products and services designed to fit the needs of various applications

providing Quality, Service, Value and Technology (QSVT)

c) Vision Statement:

To be the leading project solution provider of water treatment and process system

solution

2
 CHAPTER 2

DESCRIPTION OF THE PRODUCT AND SERVICES

AQUABEST we offered purified, clean and safe water that purifies your

body. Water has always been my drink of choice. It makes me feel good and keep

myself hydrated. Whenever I have a craving, a headache, feel constipated or hungry

I drink water and it helps a lot on making me feel better. It was load in different

type and sizes of plastic bottles to meet the needs of the consumers.

Per Bottles: 500ml-PHP 8.00 5 Gallons Round Type – PHP 25.00

5 Gallon Slim type – PHP 25.00

3
MANUFACTURING OR PRODUCTION PROCESS

Machine Packages

4
Utilizing four unique technologies Grander, Tanking, Neogene, and Reverse

Osmosis; Aqua best alters the very nature of water to make it better.

PHYSICAL FACILITIES

5
This was the challenge that Carson Tan faced when he built up the Aqua best brand

from a single bankrupt water station to one of the largest water refilling station

chains in the country with over 700 stores nationwide.

Advantages of Aqua Best Franchised Water Refilling Station:

 Franchisee will be provided with continuous training to the

Managers/Supervisors and Crews concerning the operations, marketing, and

technical aspects of the business.

 Franchised stores have developed a very aggressive marketing plan to help in

achieving the maximum profitability of each franchisee.

 Each franchisee is part of a collective marketing and promotional programs.

 Franchisee is part of a larger chain thus giving your individual outlet

recognition of strong presence.

 They have readily available labels and other accessories.

 Local and nationwide exposure thru advertisements, exhibits, show

sponsorships, and other promotional tie-ups.

 Special refill price among nearest franchisees in case of emergency and

shortage of production.

 Unique layout and design of stores exclusive for its franchisees.

Intellectual property (patients, copyrights, trade secrets)

Water is very important in everyday life. Since water nowadays is

contaminated and polluted due to rapid population growth, an idea comes

to our mind. So we build the Aqua best to purify, distilled and renew the

water to support our daily lives, not just ours to us everybody, all living

things.

Distribution

 Through delivery, Retail

 Consignments, Wholesale

6
Our Location is at San Jose Street Dumaguete City, Near at Gate three NORSU

Main Campus 1. Our Customers Are Students, worker and everyone. Legal

Structures Are Building Permit and Certificate of Occupancy. Legal Requirements,

licensing, etc. are Mayor’s Permit, DTI Certificate, BIR Certificate.

Future Plan

We have a future plan to our Aqua best refilling Station, we supply the best

quality of water to meet the needs of every consumer. We also conserve our supply

to make a good profit

7
 CHAPTER 2

Management Team

a) Initial Capital Investment: Php 700,000.00

Organizational Structure

8
Management

Qualifications and Positions

Manager

Qualifications:

 Approximately 2-4 years of sales experience in the marketing industry.

 Experience with a company in a related company sector.

 Extensive experience of developing, maintaining and delivering on

marketing strategies to meet company objectives.

 A strong understanding and market dynamics and requirements.

 A proven ability to oversee all marketing, advertising and promotional staff

and activities.

Job Description:

 Maintains staff by recruiting, selecting, orienting, and training employees.

 Accomplishes staff results by communicating job expectations.

 Establishes strategic gals by gathering pertinent business, financial, service,

and operations information.

 Accomplishes financial objectives by forecasting requirements.

 Maintains quality service by enforcing quality and customer service

standards.

 Contributes to team effort by accomplishing related results as needed.

9
Bookkeeper

Qualifications:

 Relevant Bookkeeping Experience

 Knowing of Microsoft Office and Internet

 QuickBooks Account experience

 Excellent intrapersonal skills (Communications, self-awareness, building

trust and problem solving, decision making.)

 Numerate and Literate

 Excellent organizational skills

 Able to Prioritize

 Able to work on own initiative

 Discreet

 Flexible and Self-motivated

 Pro-active Team worker

Job Description:

 Maintaining the financial records of the company using bookkeeping

software and online spread sheets.

 Maintaining records of subsidiaries

 Preparing and processing payrolls

 Reconciling all accounts periodically

 Preparing monthly, quarterly, half-yearly, and yearly financial statements

10
Administrative Assistant

Qualifications:

 Basic reading, writing, and arithmetic skills required

 Knowledge of Microsoft Office

 Excellent communication skills both written and oral.

 Ability to work as part of a team and use own initiative where applicable.

 Ability to initiate and prepare routine correspondence, reports and memos.

 Reception skills including effective answering of telephone and face to face

contact with public

 Financial skills with an ability to understand and analyze figures

Job Descriptions:

 Maintains workflow by studying methods: implementing cost reductions:

and developing reporting procedures.

 Creates revises systems and procedures by analyzing operating practices,

recordkeeping system.

 Ensures operation of completing preventive maintenance requirements,

calling for repairs.

 Maintains supplies inventory by checking stock to determine inventory

level.

 Contributes to team effort by accomplishing related results as needed.

 8 hours working

11
 Technical Assistant

Qualifications:

 Excellent intrapersonal skills to provide quality customer service to both

internal and external customers

 Ability to interact with different levels of personnel.

 Strong organizational and time management skills.

 Additional experiences may be substituted for lack of formal degree.

 Has at least vocational 2-year diploma

 Has a good personality

 Has good communication towards customers

 Knows how to deal with customers

 Efficient at work

 Discreet

 Flexible

 Self-Motivated

 Pro-active Team

Job Description:

 Ensures legal compliance of packaging, both suitability for purpose and

disposal

 Strive to minimize environmental impact of packaging, operation, and

waste management

 Carry out environmental and personnel swabbing and evaluation of hygiene

systems.

 Evaluating and trial new machinery for water processing and improving

production processes

 A person who can work under pressure

12
  A person who knows to operate the purified water refilling station

equipment

 Knows how to repair the equipment in case it is broken

 8 hours working

Delivery Man

Qualifications:

 At least high school graduate

 Hardworking

 Has good personality

 Who can work under pressure

 Self-motivated

 Pro-active Team

Job Description

 Knows how to drive a 10-wheeler truck or less

 Knows how to operate water station equipment

 Has valid license

 Contributes to team effort by accomplishing related results as needed

 8 hours working

13
Front Liner

Qualifications:

 At least high school graduate

 Hardworking and has good personality

 Who can work under pressure

 Self-motivated

 Pro-active Team

 Efficient at work

 Knows how to deal with customers

Job Description:

 A person who can be all around in a purified water refilling business

 A person who at least knows how to operate water processing equipment

 Contributes to team effort by accomplishing related results as needed

SCHEDULE OF WORKING DAYS

Aquabest Refilling Water Station is open from Monday-Saturday from 8:00

a.m-6:00 p.m.

 Working Days

Monday-Sunday

 Working Hours

8:00 a.m.-8:00 p.m.

 1 Hour Total of Break divided into two break:

30 minutes: Lunch Break

30 minutes Siesta Break (3:00-3:30 p.m.)

14
GANTT CHART

Nov-19 Dec-19 Feb-20 Mar-20 May-20 Jul-20 Aug-20 Oct-20 Dec-20 Jan-21

Conduct of Business Plan

Review of the Project

Putting up of Equity

Site of Acquisition and Series1

Building Days to Complete

Registration of the Business

Selection and Purchase of

Materials

Improving Leasholds

Start of Normal Operation

(Grand Opening)

15
 CHAPTER 3

Evana Water Refilling Station

Strength

 Production of high quality purified water at low cost.

 Price Competitive

Weakness

 Inability of the equipment (Costly machines).

Opportunity

 Have very large target market.

Threat

 Competition in the field.

ZERO Water Refilling Station

Strengths

 Their business was known-popular on their district which is on Apalit

 They are open/operating their business for 6 working days. (Mon - Sat)

 They have much-employees to supply the needs of their customers

 The have or own vehicles to deliver their customers’ orders

WEAKNESSES

 Workers are not wearing proper attire to prevent contamination.

 The delivery is not on time.

16
Opportunity

 Large untapped Market.

Threat

 Changes in the regulatory environment (primarily applicable to the higher

purity products).

Atabay Water Refilling Station

Strength

 Known brand name

Weakness

 Workers are not wearing proper attire to prevent contamination.

Opportunity

 Wide range of market in different industries

Threat

 May have an environmental impact.

Cool Drops Refilling Station

Strength

 They are open/operating their business for 6 working days. (Mon - Sat)

 Uses of new technology

17
Weakness

 Lack of delivery equipment

 Lack of personnel.

Opportunity

 Operating efficiencies that are attainable as the business grows.

Threat

 Changes in technology that could affect the companies that are heavily invested

in current technology.

Himpayan Water Resources & Refilling Station

Strength

 Fast delivery

 Strong branding

Weakness

 Not in their proper attire

 . Slow delivery.

Opportunity

 One of the pioneer corporation in the industry

Threat

 Competitor have a strong relationship with consumer.

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Strength

 Supply chain- To obtain the right number of resources from suppliers and delivery

the right product to customers in a timely manner.

 Cost advantages- A cheaper price on the products can undercut rivals on price.

 Excellent distribution & availability at households, retails, groceries, restaurants,

hotels, offices.

 Excellent Advertising- Well planned market strategy that can catch the attention of

potential customers.

Weaknesses

 Cost Structure- The higher the price the advantage for the competitors

 Weak Management- This will not help eliminate potential risk.

Opportunity

 New products- Offering different sizes of gallons that competitors don’t have.

 New Technology- To better meet customer’s needs with new and improved

products and services. Technology also builds competitive barriers against other

water station.

19
 New markets. To expand and let the company reached the customer

Threats

 Increasing competitors- This lead to decrease in sales and can attract your

customers from you.

 Change in Taste- knowing which goods and services consumers want.

 Bigger player- The bigger player has a fund and can give more promotions that will

take your customers away from you.

20
 CHAPTER 4

MARKETING

Marketing Strategies

In order to have customers, we need to let them know that our water-refilling station

exist. To spread word about our outlet, we offer fliers in crowded areas in neighborhood

like markets and churches. If more people know about our outlet, then there’s a greater

chance to get more customers.

Types of Strategies

 Create page in social media such as Facebook to promote Aqua Best Refilling

Station.

 Distribution of fliers at market area or household.

 Surprise sale promotion

 Networking-Refer to a friend and get 2 bottle refill

 Marketing friends and relatives

21
 Product Strategy

 Free delivery to regular customers

 Customers can order different sizes of bottles

 We refill different sizes of bottles

 We clean bottles before refilling

Pricing Strategies

For the pricing strategy, Aqua best gathered information by surveying people from

the area where the company is located. The survey was all about the type of water

people in the area most likely used in drinking, nearby refilling stations, and the pricing

of products of the nearby refilling stations.

Based from the survey, we need to lower the price so we can compete with nearby

stations and entice potential clients. The survey also included suggestions and

comments so that the outcome of the refilling station will attract more customers and it

can reassure the owners that the customers are satisfied with our service.

Product Aqua best Water Station 1 Water Station 2

350 ml PHP 4.75 PHP 5.00 PHP 5.00

500 ml PHP 7.75 PHP 8.00 PHP 8.00

5 gallons( round) PHP 20.00 PHP 22.00 PHP 25.00

5 gallons (slim) PHP 20.00 PHP 22.00 PHP 25.00

Delivery Free Free Free

22
 Distribution Strategies

Advance ordering will be the best way to deliver on time. We will get their

phone numbers or have them contact us through our social media account if they

need supply of our products in their establishments. However, there are situations

that products are in need in in a short period of time. For this situation, we are

committed to provide on time. It will take an hour to deliver the product on their

locations.

The company will be using tricycle to distribute orders to our customers. And

when the demand is high we will outsource more commercial tricycle to be used.

We want to maintain and show our commitment in quality services.

Advertising

As for the advertising of the company, Aqua best Water Refilling Station focuses

on personal contacts. The people nearby the location of the company will talk about

the new station being established. Aqua best Water Refilling Station will not just

depend on personal contacts only. Another idea of advertising is through display

advertising specifically through fliers and brochures.

Sales Strategy

The sales strategy is to concentrate on the segment of the sales advertising, most

easily captured by the following sales feature: increase of sales and customers

annually. In addition, the fastest way to reach the sales goal for the first several

years is by actively working to develop a dealership network specifically, water

distributors.

Target Market

Our target customer is everyone in the area of operations such as households,

offices, stores, shops., etc. Despite the fact that there are a lot of water refilling

stations nearby, we intend to target majority of the people as the water we offered

will be well purified water for drinking.

24
 If the first batch of customers will be satisfied with the service and the product,

they will spread the news about the company. And when the people heard the news

and also spread the news to others and also get satisfied, this will increase the

number of potential customer to the company.

b) Marketing Mix

1. Product

Aqua best Refilling Station offers a quality product that makes the customer

wanting it more. Our teas are Taiwanese-inspired teas which makes our product

more unique, because we stay true to our roots. Our ingredients are imported from

the main branch which is from Macao. Aqua best Refilling Station has a few

specials that are customized to meet our customer needs such as Chestnut Cream

Uji Matcha, Cheesecake Purple Taro, and many more variety of flavors. Part of our

aim is to educate our customers about tea and tea brewing; however, this must only

be done in a respectful fashion. This is to ensure that are customers are familiar

with our product, and for them to trust the drink that we serve. Our knowledge is a

resource, and must never be used to make a customer feel uncomfortable or

ignorant.

2. Place

Aqua best Refilling Station is located along San Jose St. Street, Dumaguete

City. Our interior design will be an intimate, cozy, comfortable, and chic feeling,

without reminding the customers of doilies and lace feeling.

3. Price

Aqua best Refilling Station provides a good quality water drinks to ensure

our customer’s satisfaction. We offer two sizes of water, small and large sizes. One

of our edges in this business is our packaging. We made sure that the drinks that

we offer will not be wasted just because of our packaging; each cup is very secured

that you can enjoy even when travelling.

25
 4. Promotion/Advertising

Based on our survey, advertisement is one of the factors that will help our

business to have more customers. We intend to advertise through online platforms

such as Facebook, Instagram, Twitter, and other online platforms. These kinds of

platforms are very helpful in promoting our products, because it easily draws

attention to customers. Another factor that our survey pointed out is through

recommendation. We offer customization of our product as part of our promotion

to also increase our sales.

 Online platforms advertising:

 Advertising through online platforms such as Instagram,

Facebook, Twitter, and even Pinterest are pretty much all

social media sites offer relatively inexpensive advertising.

 Word-of-mouth advertising:

 This is one of the most credible forms of advertising

because a person puts their reputation on the line every time

they make a recommendation and that person has nothing to

gain but the appreciation of those who are listening. We

assure to give our customers one of a kind water, and we will

make sure to give them a good customer service for them to

enjoy their water experience. This way, they will share their

experience to their relatives and friends and spread our good

quality and friendly environment.

 Sales promotion:

 We intend to have a sale prices for the first 100 customers

during our opening day. This will draw attention to the

customer to make it first during our opening day to avail and

purchase our product.

 Direct mail and personal sales:

 Direct mail, or the art of sending a compelling sales letter

by snail mail to our target audience, can offer a healthy

return on investment for our business. The starting point is

26
we have identified our target market including our relatives

and relatives, and then send an enticing offer out to all of

those prospects. Measuring the responses helps us see

which type of customers are responding to this format, so

we can use even more precision targeting with our next

mail shot.

27
 CHAPTER 5

FINANCIAL ASPECT

a) Statement of Financial Assumptions

With respect to the business, the researchers had formulated necessary

assumptions that will directly related to the reliability and accuracy of the future

sales and expenses. These are the following:

a. The shop will open at 8:00 o’clock in the morning to 6:00 o’clock in the evening.

b. All sales are cash sales.

c. 1st year sales is based on the data gathered by the franchisees.

d. Sales are to increase by 10% per annum.

e. Cost and expenses is projected to increase by 5% per annum.

f. The projected statement of financial position, statement of profit or loss and the

cash flow statement will be 3 years.

g. Insurance expense will be the same over the succeeding years and this would be

expensed as incurred and renewable each year.

h. Salaries expense will increase 3% per annum.

i. Water expense at 2% of revenues.

j. Electricity expense at 5% of revenues.

k. Internet monthly payment at Php5,000.

l. Supplies expense will increase 3% annually.

m. The estimated useful life of leasehold improvement and furniture and fixtures is

22 years.

n. The estimated useful life of equipment is 12 years and other assets are 20 years.

o. Straight-line method will be used in computing for the annual depreciation,

amortization and expenses.

p. Repair and maintenance assumed at 4% of revenues on year 1

28
q. Taxes and licenses assumed at 5% of revenues

r. Accounts payable at year end pertains to SSS, Phil Health and HDMF

contributions for December to be remitted in January of the next year. Updated tax

table are being followed.

s. It is assumed that there are 360 days a year and 30 days a month.

t. Balance Sheet is rounded off to the nearest peso.

29
 AQUABEST WATER REFILLING STATION
PROFIT AND LOSS STATEMENT
FOR THE THREE (3) YEAR PERIOD

YEAR 1 YEAR 2 YEAR 3

SALES 2,277,720.00 2,505,492.00 2,756,041.20

EXPENSES
Salaries 5,693,760.00 5,864,572.80 6,040,509.98
SSS, Phil health and Pag-
ibig 77,279.52 80,159.52 83,999.52

Supplies Expense 50,000.00 51,500.00 53,045.00

Taxes and Licenses 113,886.00 125,274.60 137,802.06 -

Electricity, Lights and
Water 159,440.40 175,384.44 192,922.88

Depreciation 36,000.00 76,000.00 114,000.00 -

Repairs and Maintenance 91,108.80 92,019.89 92,940.09

Insurance 12,000.00 12,000.00 12,000.00

TOTAL EXPENSES 6,233,474.72 6,476,911.25 6,727,219.53

Net Income (loss) 3,955,754.72 3,971,419.25 3,971,178.33 -

30
 AQUABEST WATER REFILLING STATION

BALANCE SHEET

FOR THE THREE (3) YEAR PERIOD

PRE-
OPERATING YEAR 1 YEAR 2 YEAR 3

ASSETS

Current Assets

Cash 20,000.00 4,109,365.01 8,215,376.86 12,325,211.10

Total Current
Assets 20,000.00 4,109,365.01 8,215,376.86 12,325,211.10

Non-Current Assets
Plant, Property and
Equipment 680,000.00 680,000.00 680,000.00 680,000.00
Accumulated
Depreciation - 36,000.00 76,000.00 114,000.00
Total Non-Current
Assets 680,000.00 644,000.00 604,000.00 566,000.00

TOTAL ASSETS 700,000.00 4,753,365.01 8,731,897.34 12,709,372.06

LIABILITIES
SSS, PHIC and
HDMF Payable - 77,279.52 80,159.52 83,999.52

VAT PAYABLE - 22,330.77 24,563.85 27,020.23

TOTAL
LIABILITIES - 99,610.29 104,723.37 111,019.75

OWNERS EQUITY 700,000.00 4,655,754.72 8,627,173.97 12,598,352.30

-
TOTAL
LIABILITIES AND
OWNERS EQUITY 700,000.00 4,755,365.01 8,731,897.34 12,709,372.06

31
 AQUABEST WATER REFILLING STATION

CASH FLOW STATEMENT

FOR THE THREE (3) YEAR PERIOD

Cash flow from operating

activities PRE-OPERATING YEAR 1 YEAR 2 YEAR 3

Net Income 3,955,754.72 3,971,419.25 3,971,178.33

Add:
Depreciation 34,000.00 52,200.00 52,200.00

Increased/ (decreased) in SSS, PHIC and HDMF 77,279.52 80,159.52 83,999.52

Increased/ (decreased) in VAT
Payable 22,330.77 2,233.08 2,456.38
Cash flow provided by
operating activities - 4,089,365.01 4,106,011.85 4,109,834.24

Cash flow from investing

activities

Improvement of building (80,000.00)

Construction of leasehold
improvements (100,000.00)
Purchase of
machinery (200,000.00)
Purchase of
equipment (300,000.00)
Cash used by investing
activities (680,000.00) - - -

Cash flow from financing

activities
Investment by
owner 700,000.00
Cash provided by financing
activities 700,000.00 - - -

Change in cash 20,000.00 4,089,365.01 4,106,011.85 4,109,834.24

Cash, beginning of the
year 20,000.00 4,109,365.01 8,215,376.86

CASH, end of the year 20,000.00 4,109,365.01 8,215,376.86 12,325,211.10

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 SCHEDULE 1 SALES

Sales

MONTHLY ANNUAL

5 Gallons Round Type 50% SALES SALES

100% 25 150 3,750.00 112,500.00 1,350,000.00

500 ml Bottles 23%

100% 8 70 552.00 16,560.00 198,720.00

5 Gallons Slim Type 27%

100% 25 80 2,025.00 60,750.00 729,000.00

189,810.00

2,277,720.00

SCHEDULE 2 SALARIES

Salaries DAILY MONTHLY YEAR 1 YEAR 2 YEAR 3

General Manager 368 11,040.00 11,040.00 11,371.20 11,712.34

Administrative Assistant 350 10,500.00 10,500.00 10,815.00 11,139.45

Frontline 300 9,000.00 9,000.00 9,270.00 9,548.10

Delivery Man 300 9,000.00 9,000.00 9,270.00 9,548.10

TOTAL 474,480.00 488,714.40 503,375.83

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 YEAR 1 YEAR 2 YEAR 3

General Manager 1,080.00 1,160.00 1,080.00

Administrative Assistant 1,000.00 1,080.00 1,000.00

Frontline 1,000.00 1,080.00 1,040.00

Delivery Man 1,000.00 1,080.00 1,040.00

monthly ER 4,080.00 4,400.00 4,160.00

annual 48,960.00 52,800.00 49,920.00

TOTAL 80,159.52 83,999.52 81,119.52

SCHEDULE 3 SSS, PHILHEALTH, HDMF PAYABLE

34
SCHEDULE 4 SUPPLIES INVENTORY

DESCRIPTION QUANTITY COST PER UNIT TOTAL COST

500 ML BOTTLE 1000 ₱ 5.00 ₱ 5,000.00

ROUND GALLON 1200 ₱ 21.00 ₱ 25,200.00

SLIM TYPE GALLON 500 ₱ 20.00 ₱ 10,000.00

HEAT GUN 2 ₱ 3,400.00 ₱ 6,800.00

STICKERS 1000 ₱ 3.00 ₱ 3,000.00

TOTAL 3702 ₱ 3,449.00 ₱ 50,000.00

35
Schedule 5 Property, Plant and Equipment

Year 1 Year 2 Year 3

Leasehold improvements 100,000.00 100,000.00 100,000.00

Machinery 200,000.00 200,000.00 200,000.00

Equipment 300,000.00 300,000.00 300,000.00

Building 80,000.00 80,000.00 80,000.00

Total 680,000.00 680,000.00 680,000.00

36
Schedule 6 Accumulated Depreciation

SCHEDULE Year 1 Year 2 Year 3

Leasehold improvements 6.1 6,000.00 12,000.00 18,000.00

Machinery 6.2 8,000.00 16,000.00 24,000.00

Equipment 6.3 18,000.00 36,000.00 54,000.00

Building 4,000.00 8,000.00 12,000.00

Total 36,000.00 72,000.00 108,000.00

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SCHEDULE 6.1 LEASEHOLD IMPROVEMENTS

LEASEHOLD ANNUAL

IMPROVEMENTS COST RESIDUAL VALUE DEPRECIABLE AMOUNT USEFUL LIFE (YEARS) DEPRECIATION

Electrical Works 30,000.00 7,500.00 17,500.00 22 2,500.00

Plumbing 25,000.00 3,500.00 13,500.00 22 1,500.00

Paint Works 20,000.00 2,000.00 9,000.00 22 1,000.00

Roofing 25,000.00 1,000.00 14,000.00 22 1,000.00

Total Leasehold Improvements 100,000.00 14,000.00 54,000.00 6,000.00

38
SCHEDULE 6.2 EQUIPMENT

TOTAL RESIDUAL DEPRECIABLE ESTIMATED ANNUAL

COST QUANTITY
EQUIPMENT COST VALUE AMOUNT LIFE (YEARS) DEPRECIATION

WATER REFILLING MACHINE 220,000.00 1.00 220,000.00 6,500.00 208,600.00 12 11,400.00

WATER DISPENSER 10,000.00 2.00 20,000.00 1,850.00 - 17,821.00 12 2,179.00

SURVEILLANCE CAMERAS 1,900.00 7.00 13,300.00 2,460.00 - 11,884.00 12 1,416.00

SEALER MACHINE 1,000.00 1.00 1,000.00 300.00 - 79.00 12 921.00

WALL FAN 1,940.00 5.00 9,700.00 11,000.00 - 7,284.00 12 2,416.00

AUTOMATIC EMERGENCY LIGHTS 1,200.00 30.00 36,000.00 1,250.00 - 34,332.00 12 1,668.00

TOTAL 236,040.00 300,000.00 77,920.00 137,200.00 20,000.00

39
SCHEDULE 7 TAXES AND LICENSES

PARTICULARS YEAR 1 YEAR 2 YEAR 3

DTI REGISTRATION 2,050.00 - -

TAX CLEARANCE 25.00 25.00 25.00

ENRO 600.00 600.00 600.00

BRGY. CLEARANCE 50.00 50.00 50.00

MAYOR'S PERMIT 6,250.00 6,250.00 6,250.00

SANITARY PERMIT 1,500.00 1,500.00 1,500.00

ENGINEERING 5,000.00 5,000.00 5,000.00

FIRE 5,000.00 5,000.00 5,000.00

BIR REG. FEE 515.00 515.00 515.00

ZONING PERMIT 12,000.00 12,000.00 12,000.00

TAXES 80,896.00 94,334.60 106,862.60

TOTAL 113,886.00 125,274.60 137,802.60

40
SCHEDULE 8 Electricity, Lights and Water

Monthly Year 1 Year 2 Year 3

WATER 2,916.67 35,000.00 35,000.00 35,000.00

ELECTRICITY 10,370.00 124,440.00 124,440.00 124,440.00

TOTAL 159,440.00 159,440.00 159,440.00

41
SCHEDULE 9 DEPRECIATION EXPENSE

Year 1 Year 2 Year 3

Leasehold improvements 6,000.00 12,000.00 18,000.00

Machinery 8,000.00 16,000.00 24,000.00

Equipment 18,000.00 40,000.00 60,000.00

Building 4,000.00 8,000.00 12,000.00

TOTAL 36,000.00 76,000.00 114,000.00

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SCHEDULE 10

REPAIR AND MAINTENANCE

PARTICULARS YEAR 1 YEAR 2 YEAR 3

WATER REFILLING MACINE 11,425.00 11,425.00 11,425.00

WATER DISPENSER 2,000.00 2,000.00 2,000.00

SURVEILLANCE CAMERAS 3,000.00 3,000.00 3,000.00

SEALER MACHINE 2,000.00 2,000.00 2,000.00

WALL FAN 800.00 800.00 800.00

AUTOMATIC EMERGENCY LIGHTS 750.00 750.00 750.00

SEALER MACHINE 750.00 750.00 750.00

TOTAL 20,725.00 20,725.00 20,725.00

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SCHEDULE 11

INSURANCE

PARTICULARS YEAR 1 YEAR 2 YEAR 3

INSURANCE 12,000.00 12,000.00 12,000.00

Note: Insurance will be the same every year.

SCHEDULE 12

VAT PAYABLE

PARTICULARS YEAR 1 YEAR 2 YEAR 3

OUTPUT VAT 273,326.40 300,659.04 330,724.94

INPUT VAT 5,357.14 5,892.86 6,482.14

267,969.26 294,766.18 324,242.80

VAT PAYABLE 22,330.77 24,563.85 27,020.23

44