Feasibility Roma 5.12.19

MAKATI SCIENCE TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES
4410 Old Sta. Mesa St., Sampaloc, Manila

Tel. No. 742-2076
A FEASIBILITY STUDY ON THE ESTABLISHMENT OF A
STRUCTURED PARKING LOT IN OLD STA. MESA, MANILA
A feasibility study presented to the Faculty of Accountancy of

Makati Science Technological Institute of the Philippines
In Partial Fulfillment of the Requirements to Management Consultancy
By:
Albert Rickson D. Roma

Mary Rose M. Abayon
Mr. Ariel Pineda

Adviser
February 2019
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APPROVAL SHEET
This feasibility entitled “A FEASIBILITY STUDY ON THE ESTABLISHMENT OF A
STRUCTURED PARKING LOT IN OLD STA. MESA, MANILA” prepared and submitted by
Mary Rose M. Abayon and Albert Rickson D. Roma has been examined and is recommended
for approval and acceptance.
RECOMMENDED:
PROF. ARIEL D. PINEDA, CPA, MBA

Adviser
____________________________________________________________________________
APPROVED by the Committee on Oral Examination with a grade of ___ on March 19, 2019
Panelist Panelist
____________________________________________________________________________
ACCEPTED and APPROVED in partial fulfillment of the requirements in Bachelor of Science in
Accountancy.
FLODENA L. DOLLOSO
VP Admin
ACKNOWLEDGMENT
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First and foremost, the proponents of this feasibility study would like to express their
deepest gratitude to God Almighty who made all of these possible, as well as to Prof. Ariel
Pineda, their professor, who never fails to guide and support them in finishing this paper. The
researchers would also like to thank the captain of Barangay 592, Zone 52 in Old Sta. Mesa
Manila, Mr. Rhodel Z. Rubio, for his cooperation with this study. The proponents of this study
also appreciate the help of Ms. Chat Gaza with regards to giving them sample feasibility studies
to serve as a guide and reference.
Mary Rose Abayon would like to thank her parents, Danny and Roselily, for their
financial and moral support. Also, she would like to express her gratitude to her friends,
Princess and Alzeah, and sibling, Ronel, for cheering her up whenever she’s down.
Albert Rickson Roma would like to extend his thanks to his family, especially to his
grandparents, Alberto and Araceli, for their financial assistance and guidance. Additionally, he
would also like to thank his friends, Melvin, Wendy and Niks, for their unconditional support.
Last but not the least, the researchers would like to praise themselves for a job well
done on this study under all the circumstances they faced.
DEDICATION
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To our loved ones,
To all those people who supported and believed in us,
And to all those people who continue to reach for their dreams.
EXECUTIVE SUMMARY
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Vehicles or Automobiles play an important role in our lives for about 250 years now
since the invention of the first steam-powered automobile in 1769. Since then, going from one
place to another has been easy for people using vehicles. Then again, finding a spot for these
huge powered machines when it is not used is hard especially in urban and crowded places.
Parking lots are spaces intended for parking automobiles. Its main purpose is to keep
vehicles away from roads or to avoid blocking of paths when it is not used. Some people also
use parking lots as a place of security for their vehicles. In most countries such as United States
and Canada, parking lots or spaces are all over the place whether it is near their house or in
every corner of their busy streets to the point that they are wasting spaces for parking spots.
The parking lot business located in Old Sta. Mesa, Manila will be patronized by most of
the vehicle owners in the area. It will earn more than what was invested within 2 and a half
years. It will not only earn more profit, but it will also serve its purpose which is to eradicate
double parking and provide security to vehicle owners who doesn’t have garages. Furthermore,
it will also provide spaces for people who are interested in renting small stalls for their business
as well as an event center for those special occasions celebrated by the clients.
The company has four major strengths which are technology, marketing, organizational
and financial. In technology, the company uses modern technology to give the customers the
best security and service a parking lot could offer. Our technology is up to date and satisfies the
wants of the customers especially the millennials to the quality of service which makes us
unique from other companies that have the same business.
The marketing strategy of the company uses not only the physical resources but also
online marketing to capture the attention in order to expand possible customers. In terms of
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organizational, the company is open for expansion to maximize the sales and to be able to cater
to larger number of clients. We can also expand our business to other location such as San
Andres Bukid, Manila in which double parking and lack of garage are rampant as well. When it
comes to financial, the company does not require any additional investments as the cash from
sales can cover the expenses as well as the expansion. The five-year financial projections show
that the income after tax by the company is more than ₱400,000 in increasing manner by almost
40%.
TABLE OF CONTENTS
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Introduction 1
Demand and Supply Analysis 4
Product / Service Description 10
Technology Considerations 11
Product / Service Marketplace 15
Marketing Strategy 17
Organization and Staffing 19
Schedule 27
Financial Projections 29
Findings and Recommendations 53
Appendices 55
Glossary 59
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I. Introduction
Vehicles or Automobiles play an important role in our lives for about 250 years now
since the invention of the first steam-powered automobile in 1769. Since then, going from one
place to another has been easy for people using vehicles. Then again, finding a spot for these
huge powered machines when it is not used is hard especially in urban and crowded places. It
also causes traffic and congestion in the busy streets and cities like in some areas of Manila
and Makati. Then again, there are places in some countries where parked vehicles do not cause
any problems and owners are assured of its safety such as in some parts of the United States of
America and Canada.
Parking lots are spaces intended for parking automobiles. Its main purpose is to keep
vehicles away from roads or to avoid blocking of paths when it is not used. Some people also
use parking lots as a place of security for their vehicles. In most countries such as United States
and Canada, parking lots or spaces are all over the place whether it is near their house or in
every corner of their busy streets to the point that they are wasting spaces for parking spots.
According to the study of Eric Schanhorst of the Research Institute of America, there are around
1.6 Million parking spaces in Seattle, a city of USA, to which 40% of its land area is used only
for parking spaces. Another study shows that Canada holds the largest parking area located in
West Edmonton, Alberta which has a capacity of parking 20,000 vehicles based on the sources
of Atlas. Meanwhile in Asia, Philippines is one of the most countries that lack parking spaces
next to China. Based on the report of Trading Economics, Philippines had an estimated average
of 5,336.05 vehicle sales per month in 2002 while it has an average of 9,301 vehicle sales per
month in 2018. Based on the LTO records, there are 2,405,122 vehicles registered in NCR for
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the year 2016 and 2,617,537 in 2017. By 2018, the number of vehicles registered increased to
2,792,936 or an increasing rate of 6.70%. However, in the Philippines, there are estimated
4,568 parking lots and 2,078 house garages only in which about 300 parking lots and 400 house
garages are in NCR based on the National Capital Region Federal Parking Study.
The lack of parking spaces for the increasing rate of vehicles results to most owners
parking their vehicles on streets to which causes congestion in some roads of the urban areas
of the country as well as traffic. It also lacks security since it is in public, no one can monitor
over the vehicle, and anyone who has bad intentions can steal it. Aside from this, the practice of
parking on side streets may result to pedestrian accidents since majority of the sidewalks are
blocked due to parking and so, pedestrians are forced to walk on roads or sometimes in the
middle of the traffic. Additionally, “double-parking” or parking on both sides of the street mostly
occurs nowadays especially on narrow ones even if it is already prohibited by some barangays
such as in Sta. Mesa, Manila.
The policy “No garage, No new car” or also known as “Proof-of-Parking-Space Act” is a
bill submitted by Senator Sherwin Gatchalian that supports to eradicate the problems
associated with parking. He strongly advices that owners should have the responsibility for their
own vehicles and not cause any trouble regarding the congestion and traffic in which owners of
new vehicles should make sure that they have a parking space. Not only that it helps with the
congestion and traffic, but also it ensures safety for vehicle owners especially on rampant
criminal cases nowadays associated with car stealing.
In regards with this bill and to support its cause, R & A Partnership is considering to
create and provide a project product that will help with the congestion traffic and also ensures
safety to vehicle owners. This project product will be a “Structured Parking Lot” consisting of 2
floors which will provide a parking space for those individuals who doesn’t have a garage or
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parking space. In line with this, it will also provide a space for individuals who are interested in
food stall businesses as well as an event center for people who want to rent a place for
occasions.
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II. Demand and Supply Analysis
Survey Result – Household along Old Sta. Mesa, Manila – 50 respondents
1. Do you own a vehicle (mode for transportation)?
Based on the respondents’ answers from this survey question, 80% of the respondents
own a vehicle while the other 20% does not. With this, it shows that most of the
household respondents in Old Sta. Mesa are vehicle owners.
2. For Vehicle owners only, how many Vehicles located in Old Sta. Mesa do you own?
(Mode for transportation)
This question is exclusive for vehicle owners only in which composed of the 80% of the
total respondents. Base d on their answers on this question, only 18 out of the 40 vehicle
owners own more than one vehicle located in Old Sta. Mesa while the remaining 22
owns only one.
3. For Vehicle Owners only, do you have your own garage located in Old Sta. Mesa?
This 3rd Survey Question is another exclusive one for vehicle owners only which
composed of 80% of the total respondents.
4. Within three years from now, do you plan on buying a new car?
Based on the respondents’ answers from this survey question, 64% of the respondents
plans on buying a new car while the other 36% does not. With this, it shows that most of
the household respondents in Old Sta. Mesa are planning to buy a new car.
5. Do you see any occurrence of double parking within your area?
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84% of the respondents have witnessed an occurrence of double parking within Old Sta.
Mesa and 16% does not.
6. Do you agree with the “NO GARAGE NO NEW CAR” policy?
Most of the respondents agree with the NO GARAGE NO NEW CAR policy with a
percentage of 86% while the remaining 14% does not.
7. How many parking lots do you know that are within your area? (parking lot for customers
and side streets not included)
24% of the respondents knows at least 1 parking lot within there are while the majority
which is 76% does not. The result shows that there is a lack of parking lots within the
area
8. Based on your own opinion, is there a need for a structured parking lot within your area?
60% of the respondents agree that there’s a need for parking lot within their area the
other 40% does not.
9. If you have a car and does not have a garage, would you patronize a secured
commercialized parking lot?
Majority of the respondents, 66%, would patronize a commercialized parking lot if they
have their own garage, 34% would not.
10. If a parking lot is to be established within your area, how much would you expect its
price per hour to be?
68% of respondents expected that the price per hour in a parking lot would range
between 25-35 pesos and 32% expected a price of more than 36 pesos.
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Questions Yes No
1.Do you own a vehicle 40 10
(mode for transportation)?
3.For Vehicle Owners 5 35
only, do you have your
own garage located in Old
Sta. Mesa?
4.Within five years from 47 3
now, do you plan on
buying a new car?
5.Do you see any 42 8
occurrence of double
parking within your area?
6.Do you agree with the 48 2
“NO GARAGE NO NEW
CAR” policy?
8.Based on your own 43 7
opinion, is there a need for
a structured parking lot
within your area?
9.If you have a car and 45 5
does not have a garage,
would you patronize a
secured commercialized
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parking lot?
Question One More than one
2.For Vehicle owners only, 22 18
how many Vehicles located
in Old Sta. Mesa do you
own? (Mode for
transportation)
Question None One or more
7.How many parking lots 38 12
do you know that are within
your area? (parking lot for
customers and side streets
not included)
Question 30-40 41 and above
10.If a parking lot is to be 34 16
established within your
area, how much would you
expect its price per hour to
be?
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Question Four wheeled cars Motorcycle
11.For vehicle owners, what 32 8
type of vehicle do you own?
60
50
40
30
20
204 261 318 375 432
Based on the survey results, even if there are many parking lots if the price is high there
is a very low demand. But if the price is too low there is a high demand, but the supply is very
low which results to shortage of parking lots. If we look at the diagram the best price point for a
parking lot would be between 30 pesos to 50 pesos.
From the survey results, it shows that 80% of the respondents own a vehicle and only
14% of the vehicle owners have their own garage. 76% of the respondents doesn’t know a
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parking lot that are within their area and 84% have seen an occurrence of double parking in Old
Sta. Mesa that causes congestion. With the lack of said parking space 86% of the respondents
agreed that there is a need for parking within Old Sta. Mesa. And majority of the respondents
which is 90% would patronize a commercialized parking lot if ever one is to be established.
The maximum capacity for the planned parking lot is 432, the company expected that at
least 318 of the total population in Old Sta. Mesa would need the parking lot.
Question Yes No
1.Are you interested to rent a 13 7
place for your small business
for 5,000 pesos a month?
The company has 100% market share as there is no major competition nearby other
than those free parking offered by establishments who sells goods. The nearest known parking
lot would be in Makati and Quezon City.
III. Product / Service Description
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It is a service that will be innovative, commercially focused which will be known for a
good reputation as well as excellent customer service. It will serve as a steppingstone and
influence economic growth within the city. The parking lot will include an automatic ticketing
machine for a faster and easy tracking of transactions. An automatic boom barrier for easy and
secured entrance and exit of cars. Traffic lights for safety purposes and to avoid collision of
cars. A sensor for each parking space to notify other clients if the space is vacant or not. An
application for smart phones for those clients that needs their car to be parked for a long time
and online reservation of space for those who are near the area. And on the upper part of the
parking lot there would be food stalls and a recreational area that can be rented for events.
Establishing this service would help reduce congestion caused by parked vehicles,
make the best use of the available parking space, enforce parking policies fairly, and provide
parking space where needed the most.
IV. Technology Considerations
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Modern and up-to-date technological capabilities will be required to achieve the goal
of the company. The following machineries and equipment will be used: GPS tracker, CCTV
Cameras, customized motion light sensor and automatic boom barrier with ticketing machine.
GPS tracker will be used by both the company and client so they will know the exact
location of their vehicles. CCTV cameras for added security measures. Customized motion light
sensor will be used as an indicator if the parking space is occupied or available. Lastly the
automatic boom barrier with ticketing machine is for security and easy tracking of transactions.
The company will also use an application so that the customers can view the status of
their vehicle. The application can also be used for early booking of space for a hassle-free
parking. It will feature a pick-up and delivery service of vehicles from their home to the parking
lot and vice versa.
Application Database for Parking Lot Sample
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V. Product / Service Marketplace
Manila is the capital of the Philippines. It is located on the island of Luzon and spreads
along the eastern shore of Manila Bay at the mouth of the Pasig River. The city is divided into
16 administrative districts, the city is the center of the country’s economic, political, social and
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cultural activity also the second largest in the country therefore ranks as the most populated and
visited place in Philippines.
With its good location within the country, another key factor is the accessibility of the city.
Manila is surrounded by well-developed transport connections. The transport facilities don’t only
provide connections to main cities but also to minor cities within Luzon. Additionally,
transportation to other cities have been continually upgraded, developed and expanded over the
last few years. Improvements and expansions of railways such as MRT, LRT and PNR will fulfill
all the modern requirements.
The proposed business location for the first R&A Partnership Parking Lot branch is
located at 4428 Old Sta. Mesa, Manila, which is a good location with a variety of schools,
churches, banks, hotels and residential buildings. The site is located along Old Sta. Mesa St.
beside Cebuana Lhuiller, across Teresa Basketball Covered Court and Mercury Drug – Sta.
Mesa, 120 meters from Halina Hotel, 230 meters from Polytechnic University of the Philippines
and 230 meters from Sta. Mesa Police Station. The lot is approximately 900 square meters,
building area is 700 square meters. It will be a two-storey building, the first floor would be the
parking lot equipped with automatic boom barrier, mini stall for the cashier with cash register,
automatic ticketing machine, traffic lights, sensor for each parking space and a guard house.
The upper floor would be allotted for office space, stock room, food stalls and recreational area
for rent for events.
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Image source: https://www.google.com/maps/place/4428+Old+Sta.+Mesa+St,+Santa+Mesa,+Manila,+Metro+Manila@14.6009549,121.0130822,15z/

data=!4m2!3m1!1s0x3397c9de78b8e407:0xc5f92dbe5ab6cec9
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VI. Marketing Strategy
Pricing
Marketing
Place Product
Strategy
Promotion
Pricing
A reasonable pricing scheme will be given to the customers considering the amenities
offered and competitiveness comparable with the existing in the area.
The parking lot fee and rental fee will be reasonable enough based on expenses incurred in the
construction of the business and prevailing market price. The parking fee starts at 30 php per
hour and rental fee of 1,000 php per hour. The prices are below that its competitors’ price who
offers the same services.
Product
The product is a two-story parking lot and recreational area built on a 900 sq.m. lot. It
consists of --- parking space and recreational area and garden on the upper part. Accessibility
and convenience of the place is guaranteed due to its proximity to market.
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Promotion
Promotions will be through posters and social media sites such as Facebook, Twitter
and Instagram. There would be a tarpaulin in front of the building during the construction of the
parking lot to attract potential customers.
Place
The place of the service that will be rendered will be at the building of the proposed
parking lot in the address: 4428 Old Sta. Mesa, Sampaloc, Manila
Target Market
The target market of this business are the vehicle owners who doesn’t have garage
within Old Sta. Mesa. Also, those customers who are interested to rent a place. The expected
customers are about 400 vehicles owners that lives within Old Sta. Mesa ages 18 and above.
VII. Organization and Staffing
The business structure that we chose for our feasibility study is partnership. In sole
proprietorship, it would be too expensive for one person to shoulder all the cost for the
construction of the parking lot. Income is taxable at personal rate, the higher the profit the higher
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the tax. There would be a lack of continuity for the business if the owner is unavailable and it
would be difficult to raise capital alone.
In corporation, it would be too much since the business is not that big. It would be more
expensive to set up a corporation than other business forms. There might be possible conflict
between the shareholders. It would require citizenship and residency for the shareholders.
While in partnership, it is easy and inexpensive to form. Start-up costs are equally
divided. More capital is available for the business. There is an equal share in management,
profits and assets. And tax would depend on the income of the partnership, low profit is equal to
low tax payment.
The organization structure of the company consists of:
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R&A Partnership
General General
Manager Manager
Finance
Supervisor I.T
Manager
Rental
Guard Valet boy Janitor Accountant Cashier
Coordinator
The general managers are the ones who have overall responsibility for managing both
the revenue and cost of a company’s income statement. They oversee the marketing and sales
functions as well as day-to-day operations of the business. They are responsible for planning,
coordinating, staffing, organizing and decision making to achieve desirable profit.
The supervisor is responsible for monitoring employee productivity and providing
constructive feedback and coaching. He also organizes the workflow and ensures that
employees understand their duties or delegated tasks.
The I.T. is responsible for implementing and maintaining the company’s technology
infrastructure. He also monitors the company’s operational requirements, research strategies
and technology solutions, and builds the most cost- effective and efficient system. He also
creates, maintains and implements the source code that makes up the application or program.
He also designs the prototype application and indicate program unit structure.
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Finance manager is responsible for the financial health of the company. He produces
the financial reports, investment activities and develop strategies and plans for the long-term
financial goals of the company.
The accountant will be responsible for managing all accounting transactions,
compute taxes and prepare tax returns, prepare a budget forecast and publish financial
statements on time. The cashier will manage all transactions with customers, collect payments,
issue receipts and track transactions on balance sheets.
The rental coordinator will oversee the facility and manage contracted events. He will
work with the vendors to ensure event logistics are successfully managed on site. He will also
help in setting up and cleaning rooms used for activities/events and assist with general cleaing
and maintenance duties. The janitor will clean and supply designated building areas and notify
the management of occurring deficiencies of needs for repairs.
The valet will assist, retrieve and deliver the customers vehicles, he will also assist
with the customer’s baggage. The security guard is responsible for protecting the company’s
property and staff by maintaining a safe and secure environment. He will also report in detail
any suspicious incidents.
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VIII. Schedule
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The company started planning the business on January 15, 2019. The first step was
canvassing for the price of the materials to be used in the construction of the parking and
equipment that will be used for the day-to-day business. After knowing the price, we started to
conduct a feasibility study to assess the strengths and weaknesses of the business proposed.
After the feasibility study is the registration of the business to Securities and Exchange
Commission, then construction of the parking lot follows. Finalization of documents are next,
such as getting BIR registration, Business permit and other permits needed to operate.
After all the paper works are done would be the start of promotion though flyers,
tarpaulins and social media. Also, during this period is assembly and furnishing of the
equipment for the parking lot. The expected start of operation would be next year, January
6,2020.
IX. Financial Projections
Table 1.1 Project Costs: Initial Capitalization
Capital Invested
Fixed Assets 1,013,145 Partner 1 1,000,000
Organization costs 40,000 Partner 2 1,000,000
Prepaid Rent 800,000
Cash - Contingencies 46,855 Total 2,000,000
Prepaid Insurance 100,000
Total 2,000,000
TABLE : INITIAL CAPITALIZATION -
Sources of Capital:
From owners 2,000,000
From loans -
Total revised capital 2,000,000
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Capitalization refers to the amount of investment of the owners. The initial cash
requirement is computed as follows: Organization Costs + Capital Expenditures + Initial
operating cost. If the total is P3 million, this amount can be financed by the owners or by
creditors. The amount financed by the creditors must bear an interest rate. The collateral of the
loan must also be stated together with the source of credit. The capital contribution of each
investor must be shown in detail. If the firm is a partnership, the profit and loss agreement must
be also stated, as well as the agreement on whether the profit share is to be withdrawn from the
business or plowed back to capital. Realistically, share in profits are withdrawn.
Included in the project costs are fixed assets, organizational cost, prepaid rent, cash
contingency and prepaid insurance. Fixed assets are assets which are purchased for long-term
use and not likely to be converted into cash such as land, buildings and equipment.
Organizational costs is the initial cost incurred to create the business. It includes legal and
promotional fees to establish the company. Prepaid rent is rent paid in advance of the rental
period. Cash contingency is a cash reserved to address unforeseen circumstances or loss in a
business. Prepaid insurance is insurance paid in advance.
Table 1.2 Working Capital
WORKING CAPITAL
Indirect Labor - Salaries (Admin.) 632,500.00
Direct Labor - Salaries (Parking & Rental) 1,544,210.00
Operating Expenses 1,468,355.59
TOTAL per year 3,645,065.59
Per month 303,755.47
Per 3 months 911,266.40
Working capital is the difference between a current asset such as cash, accounts
receivable and inventories and current liabilities. It is used in day-today trading operations.
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Table 1.3 Financial Statements
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R & A Partnership
Preoperating Cash Flows
Sources:
From capital ₱2,000,000
From loans
Total cash sources ₱2,000,000
Payments:
Organization Cost 40,000
Capital Expenditures 1,013,145
Cash, end - Contigencies ₱46,855
R & A Partnership
Preoperating Balance Sheet
Account Title Debit Credit
Cash ₱46,855
Organization Cost 40,000
Fixed Assets 1,013,145
Partner 1, Capital 1,000,000
Partner 2, Capital 1,000,000
TOTAL ₱2,000,000 ₱2,000,000
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R & A Partnership
Statement of Financial Position
For the year ended Dec. 31
Preoperating 2020 2021 2022 2023 2024
Assets
Current Assets:
Cash 46,855 1,392,425 1,972,978 2,753,092 3,705,728 4,654,801
Petty Cash 15,000 20,000 20,000 20,000 20,000
Accounts Receivable 22,334 24,911 27,111 28,922 29,784
Prepaid Rent 800,000 - - - - -
Organization Cost 40,000 40,000 40,000 40,000 40,000 40,000
Prepaid Insurance 100,000 100,000 100,000 100,000 100,000 100,000
Total current assets 986,855 1,569,759 2,157,889 2,940,203 3,894,650 4,844,585
Non-current Assets:
Property, Plant & Equipment 1,013,145 1,013,145 1,013,145 1,013,145 1,013,145 1,013,145
Less: Accumulated depreciation - 92,931 185,863 278,794 371,726 464,657
Total non-current assets 1,013,145 920,214 827,282 734,351 641,419 548,488
Total Assets 2,000,000 2,489,972 2,985,171 3,674,554 4,536,069 5,393,072
Liabilities & Equity

Current Liabilities:
Income Tax Payable 43,245 81,061 113,189 142,632 154,720
Salaries Payable 181,393 181,393 181,393 181,393 181,393
Withholding Taxes Payable - - - - -
SS Premiums Payable 13,640 13,640 13,640 13,640 13,640
Philhealth Premiums Payable 2,778 2,778 2,778 2,778 2,778
Pag-ibig Premiums Payable 4,010 4,010 4,010 4,010 4,010
Utilities Payable 16,584 16,909 17,241 17,579 17,924
Subscription Fees payable 24,700 25,184 25,678 26,182 26,695
Total current liabilities 286,349 324,975 357,928 388,213 401,159
Total Liabilities 286,349 324,975 357,928 388,213 401,159
Partner 1, Capital 1,000,000 1,101,812 1,330,098 1,658,313 2,073,928 2,495,957

Partner 2, Capital 1,000,000 1,101,812 1,330,098 1,658,313 2,073,928 2,495,957
Total Capital 2,000,000 2,203,623 2,660,196 3,316,626 4,147,857 4,991,913
Total Liablities & Equity 2,000,000 2,489,972 2,985,171 3,674,554 4,536,069 5,393,072
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R & A Partnership
Cash Flow Statement
For the Year Ended Dec. 31
Pre-Operating 2020 2021 2022 2023 2024
Cash flow from operations:
From sales 4,444,466 4,979,721 5,419,971 5,782,613 5,955,879
Less: cash outflows
Salaries payments 1,995,318 2,176,710 2,176,710 2,176,710 2,176,710
Income tax 129,736 286,430 420,628 541,084 606,793
SS payments 150,040 163,680 163,680 163,680 163,680
Philhealth payments 30,553 33,330 33,330 33,330 33,330
Pag-ibig payments 44,110 48,120 48,120 48,120 48,120
Utilities payments 182,424 202,585 206,558 210,609 214,739
Miscellaneous Payments 5,000 5,098 5,198 5,300 5,404
Repairs & Maintenance Payments 30,000 30,588 31,188 31,800 32,423
Rent Expense - 800,000 800,000 800,000 800,000
Advertising Payments 39,670 40,448 41,241 - -
Drawings 200,000 300,000 400,000 500,000 600,000
Organization Fees 40,000 - - - - -
Prepaid Insurance 100,000 - -
Prepaid Rent 800,000 - - - - -
Subscription Fees 271,700 301,728 307,645 313,678 319,829
Operating Supplies 5,346 5,451 5,558 5,667 5,778
Petty Cash 15,000 5,000 20,000 20,000 20,000
Total outflows 3,098,896 4,399,168 4,639,856 4,829,978 5,006,806
Cash flow from operations 1,345,570 580,553 780,115 952,636 949,073
Cash from Investing

Purchase of PPE 413,145
Leasehold Improvements 600,000
Cash flow from Investing (1,013,145)
Increase/Decrease In Cash - 1,953,145 1,345,570 580,553 780,115 952,636 949,073

Add: Cash Beginning 2,000,000 46,855 1,392,425 1,972,978 2,753,092 3,705,728
Cash, ending 46,855 1,392,425 1,972,978 2,753,092 3,705,728 4,654,801
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SCHEDULE : CASH FLOW COMPUTATIONS

2020 2021 2022 2023 2024
From Sales:
Accounts Receivable, beginning - 22,334 24,911 27,111 28,922
Add: Sales 4,466,800 4,982,299 5,422,170 5,784,424 5,956,740
Total 4,466,800 5,004,633 5,447,082 5,811,535 5,985,663
Less: Accounts Receivable, end 22,334 24,911 27,111 28,922 29,784
Collections/inflows 4,444,466 4,979,721 5,419,971 5,782,613 5,955,879
SALARIES PAYMENTS
Admin Salaries 632,500 632,500 632,500 632,500 632,500
COS salaries 1,544,210 1,544,210 1,544,210 1,544,210 1,544,210
Total 2,176,710 2,176,710 2,176,710 2,176,710 2,176,710
Add: Salaries Payable, beg. - 181,393 181,393 181,393 181,393
Total 2,176,710 2,358,103 2,358,103 2,358,103 2,358,103
Less: Salaries Payable, end 181,393 181,393 181,393 181,393 181,393
Salaries Paid 1,995,318 2,176,710 2,176,710 2,176,710 2,176,710
Add: Withholding Tax Payable, beg. - - - - -
Total 1,995,318 2,176,710 2,176,710 2,176,710 2,176,710
Less: Withholding Tax Payable, end - - - -
Salary payments, net of tax 1,995,318 2,176,710 2,176,710 2,176,710 2,176,710
INCOME TAX PAYMENTS

Income tax payable, beginning - 43,245 81,061 113,189 142,632
Add: Income Tax for the year 172,981 324,246 452,756 570,527 618,881
Total 172,981 367,491 533,817 683,716 761,513
Less: Income Tax Payable, end 43,245 81,061 113,189 142,632 154,720
Income tax payments 129,736 286,430 420,628 541,084 606,793
SSS PAYMENTS:
SS Payable, beginning - 13,640 13,640 13,640 13,640
Add: SS expenses 163,680 163,680 163,680 163,680 163,680
Total 163,680 177,320 177,320 177,320 177,320
Less: SS Payable, end 13,640 13,640 13,640 13,640 13,640
SS payments 150,040 163,680 163,680 163,680 163,680
PHILHEALTH PAYMENTS
Philhealth Payable, beginning - 2,778 2,778 2,778 2,778
Add: Philhealth contributions 33,330 33,330 33,330 33,330 33,330
Total 33,330 36,108 36,108 36,108 36,108
Less: Philhealth Payable, end 2,777.50 2,777.50 2,777.50 2,777.50 2,777.50
Philhealth payments 30,553 33,330 33,330 33,330 33,330
PAG-IBIG PAYMENTS
Pag-ibig Payable, beginning - 4,010 4,010 4,010 4,010
Add: Pag-ibig contributions 48,120 48,120 48,120 48,120 48,120
Total 48,120 52,130 52,130 52,130 52,130
Less: Pag-ibig Payable, end 4,010.00 4,010.00 4,010.00 4,010.00 4,010.00
Pag-ibig payments 44,110 48,120 48,120 48,120 48,120
Utilities Payable, beginning - 16,584 16,909 17,241 17,579

Add: Utilities Expenses 199,008 202,911 206,890 210,947 215,083
Total 199,008 219,495 223,799 228,188 232,662
Less: Utilities Payable, end 16,584 16,909 17,241 17,579 17,924
Rent Expense
Real Rent Payable, beginning - - - - -
Add: Rent Expense 800,000 800,000 800,000 800,000 800,000
Total 800,000 800,000 800,000 800,000 800,000
Less: Rent Payable, end 34- - - - -
Payments 800,000 800,000 800,000 800,000 800,000
Tel. No. 742-2076
ADVERTISING PAYMENTS
Advertising Payable, beginning - - - - -
Add: Advertising Expense 39,670 40,448 41,241 - -
Total 39,670 40,448 41,241 - -
Less: Advertising Payable, end - - - - -
Payments 39,670 40,448 41,241 - -
MISCELLANEOUS
Misc. , beginning - - - - -
Add: Misc. Expense 5,000 5,098 5,198 5,300 5,404
Total 5,000 5,098 5,198 5,300 5,404
Less: Misc., end - - - - -
Payments 5,000 5,098 5,198 5,300 5,404
SUBSCRIPTION FEES
Subscription Fees , beginning - 24,700 25,184 25,678 26,182
Add: Subscription Purchase 296,400 302,212 308,139 314,181 320,342
Total 296,400 326,912 333,323 339,860 346,524
Less: Subscriprion Fees, end 24,700 25,184 25,678 26,182 26,695
Payments 271,700 301,728 307,645 313,678 319,829
OFFICE SUPPLIES
Offi ce Supplies , beginning - - - - -
Add: Offi ce Supplies 5,346 5,451 5,558 5,667 5,778
Total 5,346 5,451 5,558 5,667 5,778
Less:Offi ce Supplies , end - - - - -
Payments 5,346 5,451 5,558 5,667 5,778
For Petty Cash:

Petty Cash, beginning 0 15000 20000 20000 20000
Less: Petty Cash, end 15000 20000 20000 20000 20000
Inflow or outflow -15000 5000 0 0 0
Table 1.4 Financial Analysis
Liquidity: 2020 2021 2022 2023 2024
Current Ratio:
Current Assets 1,569,759 2,157,889 2,940,203 3,894,650 4,844,585
Current Liabilities 286,349 324,975 357,928 388,213 401,159
Answer: 5.48 6.64 8.21 10.03 12.08
Quick Ratio:
Quick Assets 1,429,759 2,017,889 2,800,203 3,754,650 4,704,585
Current Liabilities 286,349 324,975 357,928 388,213 401,159
Answer: 4.99 6.21 7.82 9.67 11.73
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Current Ratio
14.00
12.00
10.00 Series1
8.00
Axis Title 6.00
4.00
2.00
0.00
1 2 3 4 5
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells the possible investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current debt and
other payables.
Based from the projected financial the company's current ratio is high which means that
the company is more than capable of settling its obligations because it has a large portion of
short-term assets compared to short term liabilities. For five years projected costs, there is an
increasing rate for the current ratio which means the company is stable enough to pay off its
debts
Quick ratio
14.00
12.00
10.00
8.00 Series1
Axis Title
6.00
4.00
2.00
0.00
1 2 3 4 5
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The quick ratio is an indicator of a company’s short-term liquidity position and measures
a company’s ability to meet its short-term obligations with its most liquid assets. The company's
quick asset ratio tells us that the company can easily pay its current liabilities.
Efficiency/Activity Ratios: 2020 2021 2022 2023 2024
Asset Turnover:
Net Sales 4,466,800 4,982,299 5,422,170 5,784,424 5,956,740
Total Assets 2,000,000 2,489,972 2,985,171 3,674,554 4,536,069
Answer: 223% 200% 182% 157% 131%
Fixed Asset Turnover:

Net Sales 4,466,800 4,982,299 5,422,170 5,784,424 5,956,740
Net Fixed Assets 1,013,145 920,214 827,282 734,351 641,419
Answer: 440.88% 541.43% 655.42% 787.69% 928.68%
Asset Turn Over

250%
200%
150% Series1
100%
50%
0%
1 2 3 4 5
Asset turnover ratio measures the value of a company’s sales or revenue relative to the
value of its asset. Looking at the results, the company has relatively high asset turnover ratio
which means the company is efficient in using its assets to generate sales.
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Fixed Asset Turn Over

1000.00%
900.00%
800.00%
700.00%
600.00% Series1
500.00%
400.00%
300.00%
200.00%
100.00%
0.00%
1 2 3 4 5
The fixed asset turnover ratio is used to measure the operating performance of a
company, it compares net sales to fixed asset. For the next years, the company’s fixed assets
turn over keeps increasing, which indicates that the company has more effectively utilized
investment in fixed assets to generate revenue. Investors tends to closely monitor this ration in
subsequent years to see if the company’s new fixed assets reward it with increased sales.
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Profitability: 2020 2021 2022 2023 2024
Net profit margin:

Net Income After Tax 403,623 756,573 1,056,430 1,331,231 1,444,057
Net Sales 4,466,800 4,982,299 5,422,170 5,784,424 5,956,740
Answer: 9.04% 15.19% 19.48% 23.01% 24.24%
Gross profit margin:

Gross Profit 2,677,460 3,192,959 3,632,830 3,995,084 4,167,400
Net Sales 4,466,800 4,982,299 5,422,170 5,784,424 5,956,740
Answer: 59.94% 64.09% 67.00% 69.07% 69.96%
Return on Equity:
Net income 403,623 756,573 1,056,430 1,331,231 1,444,057
Owners' Equity 2,203,623 2,660,196 3,316,626 4,147,857 4,991,913
Answer: 18.32% 28.44% 31.85% 32.09% 28.93%
Return on Assets:
Net income 403,623 756,573 1,056,430 1,331,231 1,444,057
Average Total Assets 497,994 597,034 734,911 907,214 1,078,614
Answer: 81.05% 126.72% 143.75% 146.74% 133.88%
Profit Margin
25.00%
20.00%
Series1
15.00%
10.00%
5.00%
0.00%
1 2 3 4 5
The net profit margin is equal to how much net income or profit is generated as a
percentage of revenue. The company’s net profit margin is in increasing trend it shoes that the
company is generating enough profit from its sales and operating costs and overhead costs are
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being contained. It is one of the most important indicator of a company’s financial health. Ideally,
investors want to see a track record of expanding margins meaning that net profit is increasing
over time.
Gross Profit
70.00%
68.00%
66.00%
64.00% Series1
62.00%
60.00%
58.00%
56.00%
54.00%
1 2 3 4 5
Gross profit is a metric used to know the amount of money left over from sales after
deducting the cost of goods sold. Since the company’s gross profit ratio keeps increasing, it tells
the analysts that the company is good at providing a service compared to its competitor. The
company’s gross profit margin is stable enough to pay for its operating expenses.
Return on Equity
35.00%
30.00%
25.00%
Series1
20.00%
15.00%
10.00%
5.00%
0.00%
1 2 3 4 5
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The return on equity is a measure of financial performance calculated by dividing net
income by shareholder’s equity. The higher the return on equity the more effectively
management is using a company’s assets to create profits. The company is above average at
using the company’s assets to create profits.
Return on Asset
160.00%
140.00%
120.00%
100.00%
80.00% Series1
60.00%
40.00%
20.00%
0.00%
1
2
3
4
5
The return on asset ratio is an indicator of how profitable a company is relative to its total
assets. The higher the return on asset number the better. The company has a high return on
asset which indicates that the company is earning more money on less investment.
Leverage: 2020 2021 2022 2023 2024
Debt to Assets:
Total liabilities 286,349 324,975 357,928 388,213 401,159
Total Assets 2,489,972 2,985,171 3,674,554 4,536,069 5,393,072
Answer: 11.50% 11% 9.74% 8.56% 7.44%
Debt to Equity:
Total liabilities 286,349 324,975 357,928 388,213 401,159
Owners' Equity 2,203,623 2,660,196 3,316,626 4,147,857 4,991,913
Answer: 13% 12% 11% 9% 8%
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Debt to assets is a measure of the company’s assets that are financed by debt, rather
than equity. This leverage ratio shows how a company has grown and acquired its assets over
time. Looking at the results, the company’s debt to assets ratio is low which means that a
greater portion of a company’s assets is funded by equity.
The debt to equity ratio is calculated by dividing a company’s total liabilities by its
shareholder equity. The company’s debt to equity ratio is in decreasing manner which means
that the company is not aggressive in financing its growth with debt. It reflects that the
shareholder equity can cover all outstanding debts in the event of a business downturn.
Table 1.5 Capital Budgeting
SCHEDULE Project cost 2,000,000.00

R & A Partnership
Annual Cash Returns 2020 2021 2022 2023 2024
Net Income 403,623 756,573 1,056,430 1,331,231 1,444,057
Add: Depreciation and
Amortization Charges 92,931 92,931 92,931 92,931 92,931
Cash Returns 496,555 849,505 1,149,361 1,424,162 1,536,988
Cash Returns Acc. Cash Returns Payback Period

1st year 496,555 496,555 1.00
2nd year 849,505 1,346,059 1.00
3rd year 1,149,361 2,495,420 1.00
4th year 1,424,162 3,919,582 1.00
5th year 1,536,988 5,456,570 (1.25)
Investment 2,000,000.00 2.75 yrs
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Cash Returns 10% PV of Cash Returns

Acc.Present ValuesDiscounted Payback
1st year 496,555 0.9091 451,413 451,413 1.00
2nd year 849,505 0.8264 702,070 1,153,483 1.00
3rd year 1,149,361 0.7513 863,532 2,017,015 1.00
4th year 1,424,162 0.6830 972,722 2,989,737 1.00
5th year 1,536,988 0.6209 954,349 3,944,086 0.97
Total Present Values 3,944,086
Less: Investment 2,000,000
NPV 1,944,086 4.97
Profitability Index 197% years
****The project is to be accepted because NPV of the proposed project is Positive and the Profitability Index is 473%
*** Discounted payback period is more than 4 years
IRR
Cash Returns 17%
Year1 496,555 0.8547 424,406
Year2 849,505 0.7305 620,575
Year3 1,149,361 0.6244 717,627
Year4 1,424,162 0.5337 760,004
Year5 1,536,988 0.4561 701,037
NPV 1,223,649
Cash Returns 16%

Year1 496,555 0.862069 428,064
Year2 849,505 0.743163 631,320
Year3 1,149,361 0.640658 736,347
Year4 1,424,162 0.552291 786,552
Year5 1,536,988 0.476113 731,780
NPV 1,314,064
Extraportation
Diff betweenIRR & 16% Diff betweenIRR & 14% Difference
17% 1,223,649
IRR 2,000,000 (776,351)
16% 1,314,064 (685,936) (90,415)
Method 1 Method 2
8.59 7.59
(0.01) (0.01)
(0.086) (0.076)
17% 16%
Exact IRR 8.66 8.66
Internal rate of return is used to evaluate the attractiveness of a project or investment. If the IRR
of a new project exceeds a company’s required rate of return, that project is desirable. If IRR
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Tel. No. 742-2076
falls below the required rate of return, the project should be rejected. Since the required return is
between 12% and 14% and IRR is 18.52%, project should be accepted.
Table 1.6 Capital Expenditures
Total - Scrap Estimated Annual

Items Cost Value =Net Value / Life = Depreciation
Parking & Rental Fixed Assets:
Machinery 116,000 11,600 104,400 10 10,440
Parking Lot Equipment 119,937 11,994 107,943 10 10,794
Leasehold Improvement 600,000 60,000 540,000 10 54,000
Event Center Equipment 86,968 8,697 78,271 10 7,827
Subtotal 922,905 83,061
Other Fixed Assets:

Office Equipment 62,945 7,868 55,077 8 6,885
Office Furniture and Fixtures 27,295 3,412 23,883 8 2,985
Subtotal 90,240 9,870
OVERALL TOTAL 1,013,145 1st year 92,931
2nd year 92,931
3rd year 92,931
4th year 92,931
5th year 92,931
Table 1.7 Operating Expenses
OPERATING EXPENSES 2020 2021 2022 2023 2024

Utilities Expense 199,008.00 202,910.55 206,889.62 210,946.73 215,083.39
Advertising Expense 39,670.00 40,447.93 41,241.11
Repairs and Maintenance 30,000.00 30,588.30 31,188.14 31,799.74 32,423.33
Office Supplies Expense 5,346.10 5,450.94 5,557.83 5,666.82 5,777.95
Rent Expense 800,000 800,000 800,000 800,000 800,000
Salary Expense - Admin. 632,500.00 632,500.00 632,500.00 632,500.00 632,500.00
Miscellaneous Expense 5,000.00 5,098.05 5,198.02 5,299.96 5,403.89
Depreciation Expense - PPE 92,931.45 92,931.45 92,931.45 92,931.45 92,931.45
Subscription Fees 296,400.00 302,212.40 308,138.79 314,181.39 320,342.49
Total Operating Expense 2,100,856 2,112,140 2,123,645 2,093,326 2,104,463
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Schedule of Office Furniture & Fixtures

Office Chairs (1,299.00 x 5) 6,495.00
Computer Tables (1500 x 5) 7,500.00
Conference Table 5,000.00
Monoblock Chairs 1,800.00
Sofa 6,500.00
TOTAL OFFICE FURNITURE & FIXTURES 27,295.00
Schedule of Office Equipment

Computers (6490 x 5 sets) 32,450.00
Mouse (250 x 5 pcs) 1,250.00
Keyboards (350 x 5 pcs) 1,750.00
Printer (5499 x 5 pcs) 27,495.00
TOTAL OFFICE EQUIPMENT 62,945.00
Schedule of Machinery
Automatic Boom Barrier w/ Card System and Sensor (58,000 x 2) 116,000.00
Schedule of Parking Lot Equipment

Customized Motion Light Sensor (5355 x 18 pcs) 96,390.00
GPS Tracker (589 x 18 pcs) 10,602.00
Lights 5,500.00
CCTV Cameras (1,487.70 x 5 pcs) 7,445.00
TOTAL PARKING LOT EQUIPMENT 119,937.00
Schedule of Prepaid Insurance

MAPFRE 100,000.00
Schedule of Events Center Equipment

Picnic Tables (4,890 x 12) 58,680.00
Lights 5,500.00
Counter Tables (1899 x 12) 22,788.00
TOTAL EVENTS CENTER EQUIPMENT 86,968.00
Table 1.8 Cost of Service
COST OF SERVICE 2020 2021 2022 2023 2024

Salaries of Employees - Parking 1,544,210 1,544,210 1,544,210 1,544,210 1,544,210
Philhealth 33,330 33,330 33,330 33,330 33,330
SSS 163,680 163,680 163,680 163,680 163,680
PAGIBIG 48,120 48,120 48,120 48,120 48,120
TOTAL COS 1,789,340 1,789,340 1,789,340 1,789,340 1,789,340
Table 1.9 Service Income
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SCHEDULE OF SERVICE INCOME

2020 2021 2022 2023 2024 # days 2020 2021 2022 2023 2024
Parking Price PER HOUR/DAY TOTAL # OF HOURS CONSUMED IN A DAY
Motorcycle 30 34.82% 110 112 114 116 118 360 1,188,000 1,232,131 1,253,324 1,274,881 1,296,809
Car (4wheels) 35 60% 208 212 215 219 223 360 2,620,800 2,718,156 2,764,908 2,812,464 2,860,839
Car (>4wheels) 50 5.18% 6 6 6 6 6 360 108,000 112,012 113,939 117,079 119,093
Rent Price 2020 2021 2022 2023 2024 # days 3,916,800 4,062,299 4,132,170 4,204,424 4,276,740
Food/Store Stalls 7,500 Per Month 5 8 11 12 12 360 450,000 720,000 990,000 1,080,000 1,080,000
Event Center 1,000 Per Hour 100 200 300 500 600 360 100,000 200,000 300,000 500,000 600,000
Total 4,466,800 4,982,299 5,422,170 5,784,424 5,956,740
Table 1.10 Income Statement
R & A Partnership
Income Statement
For the Year Ended December 31
2020 2021 2022 2023 2024
Service Income - Parking (sched 1) 4,466,800 4,982,299 5,422,170 5,784,424 5,956,740
LESS: Cost of Service - Parking (sched 2) (1,789,340) (1,789,340) (1,789,340) (1,789,340) (1,789,340)
Gross Profit 2,677,460 3,192,959 3,632,830 3,995,084 4,167,400
Less: Operating Expenses - Parking (sched 3) (2,100,856) (2,112,140) (2,123,645) (2,093,326) (2,104,463)
Net Income before Tax 576,604 1,080,819 1,509,185 1,901,758 2,062,938
Income Tax (30%) (172,981) (324,246) (452,756) (570,527) (618,881)
Net Income after Tax 403,623 756,573 1,056,430 1,331,231 1,444,057
Table 1.11 Statement of Changes in Equity
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R & A Partnership
Statement of Changes in Equity
For the Year Ended December 31
2020 2021 2022 2023 2024
Partner 1, Capital - Beginning 1,000,000 1,101,812 1,330,098 1,658,313 2,073,928

Add: Net Income 201,812 378,287 528,215 665,615 722,028
Less: Drawings (100,000) (150,000) (200,000) (250,000) (300,000)
Partner 1, Capital - Ending 1,101,812 1,330,098 1,658,313 2,073,928 2,495,957
Partner 2, Capital - Beginning 1,000,000 1,101,812 1,330,098 1,658,313 2,073,928

Add: Net Income 201,812 378,287 528,215 665,615 722,028
Less: Drawings (100,000) (150,000) (200,000) (250,000) (300,000)
Partner 2, Capital - Ending 1,101,812 1,330,098 1,658,313 2,073,928 2,495,957
TOTAL CAPITAL 2,203,623 2,660,196 3,316,626 4,147,857 4,991,913
Table 1.12 Schedule of Expenses
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Schedule of Utilities Expense

Telephone & Internet 1,999.00
Water (Estimated - For Parking Office) 1,000.00
Water - Maynilad (Estimated - For Rental Place) 1,000.00
Electricity - Parking and Office (Estimated consumed 1050 x 8.39 per KWH) 8,809.50
Electricity - Rental (Estimated consumed 450 x 8.39 per KWH) 3,775.50
Total per month 16,584.00
Months 12
TOTAL UTILITIES PER YEAR 199,008.00
Schedule of Organizational Costs

Local Gov't. Permit 5,000.00
SEC Registration 5,000.00
Feasibility Study Cost 15,000.00
Professional Fees (CPA) 10,000.00
Representation 5,000.00
TOTAL ORG. COSTS 40,000.00
Schedule of Leasehold Improvement

Materials (Paint, Hollow Blocks, Cement, Asphalt, Doors, Windows, Stairs, etc.) 500,000.00
Professional Fee - Construction Company 100,000.00
TOTAL CONSTRUCTION EXPENSES 600,000.00
Schedule of Subscription Fees

Operating Systems & Programming Languages for Apps 171,600.00
Software for Applications (1 year) 124,800.00
TOTAL SUBSCRIPTION FEES PER YEAR 296,400.00
Schedule of Advertising & Promotion Expense

Flyers (50% Parking - 50% Rental) 5,000.00
Digital Advertisement (50% Parking - 50% Rental) 25,000.00
Tarpaulin (50% Parking - 50% Rental) 9,670.00
TOTAL ADVERTISING & PROMOTION EXPENSE 39,670.00
Schedule of Miscellaneous Expense

Cleaning Materials 5,000.00
TOTAL MISCELLANEOUS EXPENSE 5,000.00
Schedule of Rent Expense

Rent per month 66,666.67
TOTAL RENT EXPENSE per year 800,000
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Schedule of Office Supplies Expense

Scissors (35.75 x 5 pcs) 178.75
Bond Paper (Short & Long) - (370 x 5 rims) 1,850.00
Glue (40.25 x 5 pcs) 201.25
Pens (8.75 x 20 pcs) 175.00

Pencils (6.75 x 20 pcs) 135.00
Ink (30 x 40 pcs) 1,200.00
Calendar (40 x 5 pcs) 200.00
Folders (7 x 20 pcs) 140.00
Stapler & Staple Wires (97.80 x 5 pcs) 489.00
Correction Tape (27.50 x 5 pcs) 137.50
Paper clips (25.20 x 5 boxes) 126.00
Ledger (32.70 x 2) 65.40
Journal (33.50 x 2) 66.20
Tape (15 x 20 pcs) 300.00
Envelope (4.10 x 20 pcs) 82.00
TOTAL OFFICE SUPPLIES EXPENSE 5,346.10
Table 1.13 Contributions to Government
Local Government Units 35,000 35,000 35,000 35,000 35,000

Bureau of Internal Revenue 106,981 258,246 386,756 504,527 552,881
Social Security System 163,680 163,680 163,680 163,680 163,680
Philhealth 33,330 33,330 33,330 33,330 33,330
PAG-IBIG 48,120 16,848 18,196 19,652 21,224
SEC 5,000 5,000 5,000 5,000 5,000
Total Contributions 392,111 512,104 641,961 761,189 811,115
Table 1.14 Payroll Schedule
POSITION TITLE Monthly Gross Salary SS Premiums PhilHealth PAGIBIG Monthly Witholding Tax Monthly Deductions Monthly Net Salary
Supervisor 30,000 800.00 412.50 600.00 1,833.33 3,645.83 26,354.17
I.T. 30,000 800.00 412.50 600.00 1,833.33 3,645.83 26,354.17
Finance Manager 30,000 800.00 412.50 600.00 1,833.33 3,645.83 26,354.17
Events / Rental Coordinator 18,000 720.00 247.50 360.00 - 1,327.50 16,672.50
Accounting Staff 16,000 640.00 220.00 320.00 - 1,180.00 14,820.00
Cashier 14,000 560.00 192.50 280.00 - 1,032.50 12,967.50
Valet 1 13,000 520.00 178.75 260.00 - 958.75 12,041.25
Valet 2 13,000 520.00 178.75 260.00 - 958.75 12,041.25
Security Guard 1 12,500 500.00 178.75 250.00 - 928.75 11,571.25
Security Guard 2 12,500 500.00 178.75 250.00 - 928.75 11,571.25
Janitor 11,500 460.00 165.00 230.00 - 855.00 10,645.00
TOTAL PHP 200,500 PHP 6,820 PHP 2,778 PHP 4,010 PHP 5,500 PHP 19,108 PHP 181,393
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Tel. No. 742-2076
POSITION TITLE Annual Gross Salary Annual Withholding Tax Annual SS Premiums Annual Philhealth Annual PAGIBIG Annual Deducations Annual Net Salary
Supervisor 360,000.00 22,000.00 9,600.00 4,950.00 7,200.00 43,750.00 316,250.00
I.T. 360,000.00 22,000.00 9,600.00 4,950.00 7,200.00 43,750.00 316,250.00
Finance Manager 360,000.00 22,000.00 9,600.00 4,950.00 7,200.00 43,750.00 316,250.00
Events / Rental Coordinator 216,000.00 - 8,640.00 2,970.00 4,320.00 15,930.00 200,070.00
Accounting Staff 192,000.00 - 7,680.00 2,640.00 3,840.00 14,160.00 177,840.00
Cashier 168,000.00 - 6,720.00 2,310.00 3,360.00 12,390.00 155,610.00
Valet 1 156,000.00 - 6,240.00 2,145.00 3,120.00 11,505.00 144,495.00
Valet 2 156,000.00 - 6,240.00 2,145.00 3,120.00 11,505.00 144,495.00
Security Guard 1 150,000.00 - 6,000.00 2,145.00 3,000.00 11,145.00 138,855.00
Security Guard 2 150,000.00 - 6,000.00 2,145.00 3,000.00 11,145.00 138,855.00
Janitor 138,000.00 - 5,520.00 1,980.00 2,760.00 10,260.00 127,740.00
TOTAL PHP 2,406,000 PHP 66,000 PHP 81,840 PHP 33,330 PHP 48,120 PHP 229,290 PHP 2,176,710
Table 1.15 Maximum Capacity
MAX CAPACITY 2020 2021 2022 2023 2024 # days 2020 2021 2022 2023 2024
Parking Price Max Customers per day = 432 (24 hrs*18 slots) TOTAL # OF CUSTOMERS IN A DAY
Motorcycle 30 Demand = 34.82% 150 150 150 150 150 360 1,620,000 1,651,768 1,684,159 1,717,186 1,750,860
Car (4wheels) 40 Demand = 60% 259 259 259 259 259 360 3,729,600 3,802,737 3,877,309 3,953,343 4,030,868
Car (>4wheels) 50 Demand = 5.18% 22 22 44 44 44 360 396,000 403,766 411,683 419,757 427,988
Rent Price 2020 2021 2022 2023 2024 # days 5,745,600 5,858,271 5,973,152 6,090,285 6,209,716
Event Center 1,000 Max Customers per day = 24 (24hrs*1 slot) 24 24 24 24 24 360 8,640,000 8,809,430 8,809,430 8,809,430 8,809,430
Food/Store Stalls 5,000 Max Customers per day = 12 (12 slots per month) 12 12 12 12 12 360 720,000 734,119 734,119 734,119 734,119
TOTAL 15,105,600 15,401,821 15,516,702 15,633,835 15,753,266
50
Tel. No. 742-2076
POPULATION - TARGET MARKET

Population Old Sta. Mesa - Sampaloc, Manila Population has a grow rate of 1.72%
Barangay 592 2,499
Barangay 593 1,027
Total 3,526
Ages 14 and Below 1006 28.54% Based on PSA Statistics
Ages 15 and above 2519 71.46% Based on PSA Statistics
GROSS TARGET MARKET

Ages 15 and Above 2,519
20% Non Vehicle Owners 504
80% Vehicle owners 2,016
12.5% Has garage 1113
87.5% Doesn't have garage 903
10% Would not patronize Parking lot 90
90% Patronize Parking lot 812 NET TARGET MARKET
Prices25-30 = 68% 552 4 wheeled and above = 80% 650

Prices 40-50 = 32% 260 Motorcycle = 20% 162
208 DEMAND
110 DEMAND
318 TOTAL DEMAND
51
Tel. No. 742-2076
X. Findings and Recommendations
Based on the information presented on this feasibility, the idea of having a parking lot located in
Old Sta. Mesa, Manila will result to a high probability of success as well as highly beneficial to
the area. Key findings are as follows:
Technology:
- Will use technology as a source of security for customers
- It will serve as the highlight of the business since it involves the Mobile Application which
has many features that customers can enjoy
- Technology can be used to operate and manage operations
Marketing:
- Will use online marketing aside from physical resources in order to capture the attention
of people.
- R&A will be in position to capture greater market share by having the event center above
the parking lot.
Organizational:
- Can expand floors in order to maximize sales
- No increase to staffing are required and no changes to organizational structure
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Tel. No. 742-2076
Financial:
- Breakeven Point occurs in the 2nd year of operation
- Five Year projection shows a Net Income after tax of more than P1,000,000 per year.
- It does not require any additional investments as the cash from sales can cover the
expenses as well as the expansion.
53
Tel. No. 742-2076
Appendices
References
 CityLab, and University of Toronto’s School of Cities and Rotman School of
Management. “Parking Has Eaten American Cities.” CityLab, 31 July 2018,
www.citylab.com/transportation/2018/07/parking-has-eaten-american-cities/565715/.
 “History of the Automobile.” Wikipedia, Wikimedia Foundation, 18 Apr. 2019,
en.wikipedia.org/wiki/History_of_the_automobile.
 “Parking Lot.” Wikipedia, Wikimedia Foundation, 2 Apr. 2019,
en.wikipedia.org/wiki/Parking_lot.
 “Parking Woes in Developing Countries.” Parking, 26 Feb. 2016,
www.parking.org/2016/01/26/tpp-2015-05-parking-woes-in-developing-countries/.
 Peters, Adele. “Here's How Much Space U.S. Cities Waste on Parking.” Fast Company,
Fast Company, 16 July 2018, www.fastcompany.com/90202222/heres-how-much-
space-u-s-cities-waste-on-parking.
 “Philippines Total Vehicle Sales.” Philippines Total Vehicle Sales | 2019 | Data | Chart |
Calendar | Forecast, 2019, tradingeconomics.com/philippines/total-vehicle-sales?
fbclid=IwAR00OaCvOl8de7jKtU-8bBGLO_dzM7YtJ0C_iOZU3rwZ_v3bQ-dksqqSv2g.
 “The Value of Parking.” The Canadian Parking Association, 20 Jan. 2018,
canadianparking.ca/the-value-of-parking/.
 Wee, Rolando Y. “The Largest Parking Lots in the World.” WorldAtlas, 18 July 2016,
www.worldatlas.com/articles/the-most-spacious-parking-lots-in-the-world.html.
Survey Questions
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Tel. No. 742-2076
1. Do you own a vehicle (mode for transportation)?

a. Yes b. No
2. For Vehicle owners only, how many Vehicles located in Old Sta. Mesa do you own? (Mode for
transportation)
a. One b. More than One
3. For Vehicle Owners only, do you have your own garage located in Old Sta. Mesa?
a. Yes b. No
4. Within three years from now, do you plan on buying a new car?
a. Yes b. No
5. Do you see any occurrence of double parking within your area?

a. Yes b. No
6. Do you agree with the “NO GARAGE NO NEW CAR” policy?

a. Yes b. No
7. How many parking lots do you know that are within your area? (parking lot for customers and
side streets not included)
a. 1 or more b. None
8. Based on your own opinion, is there a need for a structured parking lot within your area?
a. Yes b. No
9. If you have a car and does not have a garage, would you patronize a secured commercialized
parking lot?
a. Yes b. No
10. If a parking lot is to be established within your area, how much would you expect its price per
hour to be?
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Tel. No. 742-2076
a. 30-40
b. 41 and above
Table 1. Present Value of P1 to Be Received at the End of n Years
Periods 1% 2% 3% 4% 5% 6% 7% 8% 10%
1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9091
2 0.9803 0.9612 0.9426 0.9246 0.907 0.89 0.8734 0.8573 0.8264
3 0.9706 0.9423 0.9151 0.889 0.8638 0.8496 0.8163 0.7938 0.7513
4 0.961 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.735 0.683
5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.713 0.6806 0.6209
6 0.942 0.888 0.8375 0.7903 0.7462 0.705 0.6663 0.6302 0.5645
7 0.9327 0.8706 0.8131 0.7699 0.7107 0.6651 0.6227 0.5835 0.5132
8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.582 0.5403 0.4665
9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4241
10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.3855
Periods 11% 12% 14% 16% 20% 24% 28% 32% 36%
1 0.9009 0.8929 0.8772 0.8621 0.8333 0.8065 0.7813 0.7576 0.7353
2 0.8116 0.7972 0.7695 0.7432 0.6944 0.6504 0.6104 0.5739 0.5407
3 0.7312 0.7118 0.675 0.6407 0.5787 0.5245 0.4768 0.4348 0.3975
4 0.6587 0.6355 0.5921 0.5523 0.4823 0.423 0.3725 0.3294 0.2923
5 0.5934 0.5674 0.5194 0.4761 0.4019 0.3411 0.291 0.2495 0.2149
6 0.5346 0.5066 0.4556 0.4104 0.3349 0.2751 0.2274 0.189 0.158
7 0.4187 0.4523 0.3996 0.3538 0.2791 0.2218 0.1776 0.1432 0.1162
8 0.4339 0.4039 0.3506 0.305 0.2326 0.1789 0.1388 0.1085 0.0854
9 0.3909 0.3606 0.3075 0.263 0.1938 0.1443 0.1084 0.0822 0.0628
10 0.3522 0.322 0.2697 0.2267 0.1615 0.1164 0.0847 0.0623 0.0462
Periods 40% 45% 50% 60% 70% 80% 90% 100% 110%
1 0.7143 0.0690 0.6667 0.6250 0.5882 0.5556 0.5263 0.5000 0.4762
2 0.5102 0.4756 0.4444 0.3906 0.3460 0.3086 0.2770 0.2500 0.2268
3 0.3644 0.3280 0.2963 0.2441 0.2035 0.1715 0.1458 0.1250 0.1080
4 0.2603 0.2262 0.1975 0.1526 0.1197 0.0953 0.0767 0.0625 0.0514
5 0.1859 0.1560 0.1317 0.0954 0.0704 0.0529 0.0404 0.0313 0.0245
6 0.1328 0.1076 0.0878 0.0596 0.0414 0.0294 0.0213 0.0156 0.0117
7 0.0949 0.0742 0.0585 0.0373 0.0244 0.0163 0.0112 0.0078 0.0056
8 0.0678 0.0512 0.039 0.0233 0.0143 0.0091 0.0059 0.0039 0.0026
9 0.0484 0.0353 0.026 0.0146 0.0084 0.0050 0.0031 0.0020 0.0013
10 0.0346 0.0243 0.0173 0.0091 0.0050 0.0028 0.0016 0.0010 0.0006
56
Tel. No. 742-2076
Table 2. Present Value of an Annuity of P1 for n Periods
Periods 1% 5% 7% 8% 9% 10% 11% 12% 13%

1 0.9901 0.9524 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.885
2 1.9704 1.8594 1.808 1.7833 1.7591 1.7355 1.7125 1.6901 1.6681
3 2.941 2.7232 2.6243 2.5771 2.5313 2.4869 2.4437 2.4018 2.3812
4 3.902 0.546 3.3872 3.3121 3.2397 3.1699 3.1024 3.0373 2.9745
5 4.8534 4.3295 4.1002 3.9927 3.8897 3.7908 3.6959 3.6048 3.5172
6 5.7955 5.0757 4.7665 4.6229 4.4859 4.3553 4.2305 4.1114 3.9976
7 6.7282 5.7864 5.3893 5.2064 5.033 4.8684 4.7122 4.5638 4.4226
8 7.6517 6.4632 5.9713 5.7466 5.5348 5.3349 5.1461 4.9676 4.7988
9 8.566 7.1078 6.5152 6.2469 5.9952 5.759 5.537 5.3282 5.1317
10 9.4713 7.7217 7.0236 6.7101 6.4177 6.1446 5.8992 5.6502 5.4262
Periods 15 16 17 18 19 20 24 28% 32%

1 0.8696 0.8621 0.8547 0.8475 0.84 0.8333 0.8085 0.7813 0.7576
2 1.6257 1.6052 1.5852 1.5858 1.5485 1.5278 1.4588 1.3916 1.3315
3 2.2832 2.2459 2.2096 2.1743 2.1399 2.1065 1.9813 1.8684 1.7663
4 2.855 2.7982 2.7432 2.6901 2.6386 2.5887 2.4043 2.241 2.0957
5 3.3522 3.2743 3.1993 3.1272 3.0576 2.9908 2.7454 2.532 2.3452
6 3.7845 3.6847 3.5892 3.4976 3.4098 3.3255 3.0205 2.7594 2.5342
7 4.1604 4.0386 3.9224 3.8115 3.7057 3.6045 3.2423 2.937 2.6775
8 4.4873 4.3436 4.2072 4.0776 3.9544 3.6372 3.4212 3.0758 2.786
9 4.7716 4.6065 4.4506 4.303 4.1633 4.031 3.5655 3.1842 2.8681
10 5.0188 4.8332 4.6585 4.4941 4.3389 4.1925 3.6819 3.2689 2.9304
Periods 40% 45% 50% 60% 70% 80% 90% 100% 110%
1 0.7143 0.6897 0.6667 0.6250 0.5882 0.5556 0.5263 0.5000 0.4762
2 1.2245 1.1653 1.1111 1.0156 0.9343 0.8642 0.8033 0.7500 0.7029
3 1.5889 1.4933 1.4074 1.2598 1.1378 1.0357 0.9491 0.8750 0.8109
4 1.8492 1.7195 1.6049 1.4124 1.2575 1.1309 1.0259 0.9375 0.8623
5 2.0352 1.8755 1.7366 1.5077 1.3280 1.1838 1.0662 0.9688 0.8868
6 2.1680 1.9831 1.8244 1.5673 1.3694 1.2132 1.0875 0.9844 0.8985
7 2.2628 2.0573 1.8829 1.6046 1.3938 1.2296 1.0987 0.9922 0.9040
8 2.3306 2.1085 1.9220 1.6279 1.4081 1.2387 1.1046 0.9961 0.9067
9 2.3790 2.1438 1.9480 1.6424 1.4165 1.2437 1.1077 0.9980 0.9079
10 2.4136 2.1681 1.9653 1.6515 1.4215 1.2465 1.1093 0.9990 0.9085
Glossary
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Tel. No. 742-2076
Capital Budgeting – the process that a business uses to determine which proposed fixed asset
purchases it should accept, and which should be declined. This process is used to create a
quantitative view of each proposed fixed asset investment, thereby giving a rational basis for
making a judgment.
Capital Expenditures – funds used by a company to acquire, upgrade, and maintain physical
assets such as property, buildings, an industrial plant, technology, or equipment.
Capitalization – the process of recording an expense or cost in a permanent account and
systematically allocating over future periods.
Cash Flow – the net amount of cash that an entity receives and disburses during a period of
time.
Demand and Supply Analysis – study of how buyers and sellers interact to determine
transaction prices and quantities.
Feasibility Study – assessment of the practicality of a proposed project or system.
Financial Statements – formal records of the financial activities and position of a business,
person or, other entity.
Income Statement – shows the company’s revenues and expenses during a particular period.
It indicates how the revenues are transformed into the net income or net profit.
Internal Rate of Return – metric used in capital budgeting to estimate the profitability of
potential investments.
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Tel. No. 742-2076
Liquidity Ratio – measurements used to examine the ability of an organization to pay its short-
term obligations.
Marketing Strategy – long-term, forward-looking approach to planning with the fundamental
goal of achieving a sustainable competitive advantage.
Operating Expenses – ongoing cost for running a product, business, or system.
Pricing – process whereby a business sets the price at which it will sell its products and
services and may be part of the marketing plan.
Profit Margin – percentage of revenue remaining after all costs, depreciation, interest, taxes
and other expenses have been deducted.
Promotion – publicization of a product, organization, or venture so as to increase sales or
public awareness.
Return on Asset – measures how efficiently a company can manage its assets to produce
profit during a period.
Return on Equity – measures the ability of a firm to generate profit from its shareholders
investments in the company.
Target Market – group of customers within a business’ serviceable available market at which a
business aims its marketing efforts and resources.
Working Capital – capital of a business which is used in its day-to-day trading operations.
59

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MAKATI SCIENCE TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES

4410 Old Sta. Mesa St., Sampaloc, Manila

A FEASIBILITY STUDY ON THE ESTABLISHMENT OF A

STRUCTURED PARKING LOT IN OLD STA. MESA, MANILA

A feasibility study presented to the Faculty of Accountancy of

In Partial Fulfillment of the Requirements to Management Consultancy

Albert Rickson D. Roma

Mr. Ariel Pineda

This feasibility entitled “A FEASIBILITY STUDY ON THE ESTABLISHMENT OF A

for approval and acceptance.

PROF. ARIEL D. PINEDA, CPA, MBA

ACCEPTED and APPROVED in partial fulfillment of the requirements in Bachelor of Science in

to serve as a guide and reference.

done on this study under all the circumstances they faced.

To our loved ones,

To all those people who supported and believed in us,

unique from other companies that have the same business.

Demand and Supply Analysis 4

Product / Service Description 10

Product / Service Marketplace 15

Organization and Staffing 19

Findings and Recommendations 53

America and Canada.

such as in Sta. Mesa, Manila.

criminal cases nowadays associated with car stealing.

II. Demand and Supply Analysis

Survey Result – Household along Old Sta. Mesa, Manila – 50 respondents

1. Do you own a vehicle (mode for transportation)?

household respondents in Old Sta. Mesa are vehicle owners.

(Mode for transportation)

owns only one.

composed of 80% of the total respondents.

5. Do you see any occurrence of double parking within your area?

Mesa and 16% does not.

6. Do you agree with the “NO GARAGE NO NEW CAR” policy?

percentage of 86% while the remaining 14% does not.

and side streets not included)

other 40% does not.

commercialized parking lot?

have their own garage, 34% would not.

price per hour to be?

1.Do you own a vehicle 40 10

(mode for transportation)?

3.For Vehicle Owners 5 35

only, do you have your

own garage located in Old

4.Within five years from 47 3

now, do you plan on

buying a new car?

5.Do you see any 42 8

parking within your area?

6.Do you agree with the 48 2

“NO GARAGE NO NEW

8.Based on your own 43 7

opinion, is there a need for

a structured parking lot

within your area?