Chapter 6

SOCIO ECONOMIC ASPECT

This chapter shows how business impacts the government, the economy,
employment, and the environment. Contributions and the importance of the
proposed business to society are also covered in this chapter. In order to receive
support from the community, the proposed firm should take into account various
consequences, not just focused on the income it could earn but also to the extent
of the benefit of the people and advancement of society.

6.1. Effects of the Business to the Society

Ideally, society is a structured group of people coexisting in a planned

neighborhood with common norms, values, and rules. The proposed firm will
contribute to society through this study since it has an impact on society in the
areas of government, households, and culture.

6.1.1. Effects in the Government

The government benefits from the establishment of the firm in

addition to the owners and/or the community. The proposed business will
raise more money for the government through taxation. It is seen to have
the ability to bring in money for both the national government and local
governments. Taxes will be applied to the income that the company will
make from its operations, and those taxes will be paid to the government.
The government will be able to fulfill the needs of the state with greater
money as a result.

6.1.2. Effects in the Household

Families and businesses have frequently been viewed as two

naturally distinct entities, although they are actually deeply entwined. An
illustration of this kind shows how the family institution influences the
process of identifying opportunities, starting a business, and mobilizing
resources. As a result, the business aims to inspire families to launch new
 ventures, support established ones by providing labor, or even become
entrepreneurs themselves.

6.2. Effects of the business to the economy

Gross Domestic Product and Gross National Product are common metrics
used to assess economic health. As more businesses are established in society,
the more frequently it is said to as a developed economy that is rapidly
expanding. As a result, the proposed firm will increase the number of commercial
buildings and help the local economy grow.

6.2.1. Effects in Employment

The proposed company will increase the number of jobs available

in the area. The company will be employing people to help with its
operations, lowering the unemployment rate in the area and the nation as
a whole. Skills/Educational attainment of the applicants/workers will be
utilized as well as they employed in the said area of the business.

6.2.2. Effects in the Market Value

The business has the potential to increase the Gross Domestic

Product (GDP) and Gross National Product of the Philippines (GNP).
While GNP measures a country's economic performance, or what its
people created and whether they produced these things within its
boundaries, GDP measures all officially recognized final products and
services produced in a country over a certain time period. The two
economic measures will probably rise as a result of the company's
expanded opportunities for profitable investment. A high level of living is
indicated by a high GDP and GNP.
EXHIBITS
AND
SCHEDULES
EXHIBIT 1

PAWFECTION PET GROOMING CENTER

PROJECTED STATEMENT OF FINANCIAL PERFORMANCE

_______________________________________________________________

EXHIBIT 2
PAWFECTION PET GROOMING CENTER
PROJECTED STATEMENT OF FINANCIAL POSITION

PROJECTED BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
CURRENT ASSETS
Cash 155,382.24 361,661.69 571,426.31 797,787.74 1,028,310.67
Unused Supplies 61,462.52 63,244.93 65,079.04 66,966.33 68,908.35
Total Current Assets 216,844.76 424,906.62 636,505.34 864,754.07 1,097,219.02

Non Current Assets

Property, Plant and Equipment 588,969.55 588,969.55 588,969.55 588,969.55 588,969.55
Accumulated Depreciation (56,862.26 ) (113,724.51 ) (170,586.77 ) (227,449.02 ) (284,311.28 )
Total Non Current Assets 532,107.30 475,245.04 418,382.79 361,520.53 304,658.28
Total Assets 748,952.06 900,151.66 1,054,888.13 1,226,274.60 1,401,877.30

Current Liabilities
SSS Payable 3,345.00 3,345.00 3,345.00 3,540.00 3,540.00
PhilHealth Payable 982.80 982.80 1,092.00 1,113.84 1,113.84
PAGIBIG Payable 600.00 600.00 600.00 600.00 600.00
Income / Percentage Tax Payable 9,867.00 10,153.14 10,447.58 10,750.56 11,062.33
Total Current Liabilities 14,794.80 15,080.94 15,484.58 16,004.40 16,316.17

Singson, Capital 734,157.26 885,070.72 1,039,403.54 1,210,270.19 1,385,561.13

Total Owner's Equity 734,157.26 885,070.72 1,039,403.54 1,210,270.19 1,385,561.13

Total Liabilities and Owner's Equity 748,952.06 900,151.66 1,054,888.13 1,226,274.60 1,401,877.30

EXHIBIT 3
PAWFECTION PET GROOMING CENTER
PROJECTED STATEMENT OF CASH FLOWS
 PROJECTED STATEMENT OF CASH FLOWS
YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Operating Activities:
Net income 0 ₱ 260,945.42 ₱ 301,826.93 ₱ 308,665.64 ₱ 341,733.30 ₱ 350,581.87
Add: Depreciation Expense - 56,862.26 56,862.26 56,862.26 56,862.26 56,862.26
Cash Income - 317,807.67 358,689.18 365,527.90 398,595.55 407,444.12
Increase/Decrease of Assets & Liabilities:
Increase in Unused Supplies (61,462.52 ) (1,782.41 ) (1,834.10 ) (1,887.29 ) (1,942.02 )
Increase in SSS Payable 3,345.00 - - 195.00 -
Increase in PhilHealth Payable 982.80 - 0.00 109.20 21.84 -
Increase in PAG-IBIG Payable 600.00 - - - -
Inc/(Dec) in Income/Percentage Tax Payable 9,867.00 286.14 294.44 302.98 311.77
Net cash Provided by Operating Activities 271,139.95 357,192.91 364,097.44 397,228.08 405,813.87

Investing Activities: (Increase)/Decrease

Acquisition of PPEs - 139,745.00 (139,745.00 ) - - - -
Leasehold Improvement - 449,224.55 (449,224.55 ) - - - -
Net Cash Provided by Investing Activities - 588,969.55 (588,969.55 ) - - - -

Financing Activities: Increase/(Decrease)

Owners' Investment 603,684.55 603,684.55 - - - -
Owners' Withdrawal (130,472.71 ) (150,913.46 ) (154,332.82 ) (170,866.65 ) (175,290.93 )
Net cash Provided by Financing Activities 603,684.55 473,211.84 (150,913.46 ) (154,332.82 ) (170,866.65 ) (175,290.93 )

Net increase/decrease in cash 14,715.00 155,382.24 206,279.45 209,764.61 226,361.43 230,522.93

Add: Cash, Beginning - - 155,382.24 361,661.69 571,426.31 797,787.74
Cash, Ending ₱ 14,715.00 ₱ 155,382.24 ₱ 361,661.69 ₱ 571,426.31 ₱ 797,787.74 ₱ 1,028,310.67

EXHIBIT 4
PAWFECTION PET GROOMING CENTER
PROJECTED STATEMENT OF CHANGE IN EQUITY

SCHEDULE 1
PAWFECTION PET GROOMING CENTER
PROJECTED SERVICE REVENUE
Assumption: Inflation Rate is assumed to be 2.9% annually