FS Putolicious

LYCEUM OF SUBIC BAY, INC.
COLLEGE OF BUSINESS ADMINISTRATION

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
PUTOLICIOUS
_______________
A Feasibility Study Presented to the Department of Business Administration and

Financial Management
Lyceum of Subic Bay
_______________
In Partial Fulfillment of the Requirements for the

Course Feasibility Study (FMFS 311)
_______________
May 2022
TABLE OF CONTENTS
CHAPTER I – SUMMARY OF THE PROJECT
1.1 Name of the Business ……………………………………………………. 1
1.2 Location of the Business ……………………………………... 1
1.3 Brief Description of the Project ………………………………………. 1
1.4 Project Summary ……………………………………………………. 1
Market Feasibility ……………………………………………………. 2
Technical Feasibility …………………………………………………… 2
Management Feasibility ………………………………………. 3
Financial Feasibility …………………………………………………… 3
Socio-Economic Impact ………………………………………. 3
CHAPTER II – INTRODUCTION / BACKGROUND OF THE STUDY

2.1 Brief Background of the Study ………………………………………. 4
2.2 Objectives of the Study………………………………………………….. 4
2.3 Operational Definition of the Terms ……………………………….. 4
2.4 Scope and Limitations of the Study ……………………………….. 5
CHAPTER III – MARKET STUDY
3.1 Objectives of the Study ……………………………………… 6
3.2 Methodology …………………………………………………... 6
3.3 Demand …………………………………………………... 6
3.4 Supply …………………………………………………... 11
3.5 Demand and Supply Analysis ……………………………………… 14
3.6 Projected Sales …………………………………………………... 15
3.7 Marketing Strategies / Programs ……………………………………… 15
Products ………………………………………………….. 15
Pricing ………………………………………………….. 15
Place of Distribution …………………………………………………. 15
Promotions / Advertising ……………………………………… 15
CHAPTER IV – TECHNICAL STUDY
4.1 Objectives of the Study …………………………………………… 16
4.2 Product/Service …………………………………………… 16
4.2a Description of the product/service …………………… 16
4.3 Manufacturing Process …………………………………………… 17
4.3a Description of the Process ……………………………. 17
4.3b Alternative Process Considered …………………………… 17
i
4.4 Production Schedule ……………………………………………. 18
4.5 Machinery and Equipment …………………………………….. 18
4.6 Plant Location, Geographical Location of Competing Companies … 20
4.7 Plant Size and Layout …………………………………………… 22
4.8 Raw Materials and Supplies ……………………………………. 23
4.9 Utilities (Electricity, Water, Fuel, etc.) ……………………………. 25
4.10 Water disposal …………………………………………………… 26
4.11 Direct Labor Requirements …………………………………… 26
CHAPTER V – MANAGEMENT STUDY

5.2 Form of Business Ownership …………………………………… 28
5.3 Capitalization …………………………………………… 28
5.4 Organizational Structure …………………………………………… 29
5.5 Manpower and Requirements …………………………………… 29
5.6 Compensation …………………………………………………… 30
5.7 Organization Policies …………………………………………… 30
5.8 Legal Requirements …………………………………………… 31
CHAPTER VI – FINANCIAL STUDY

6.2 Total Project Cost-All Items Considered Consumption Made …… 33
6.3 Initial Capital Requirements-all Items Considered …………… 38
6.4 Sources of Financing …………………………………………… 39
Sources selected or proposed for
Both Long-term/short-term Financing …………………… 39
Alternative Sources …………………………………………… 39
Amount and Terms of Financing …………………………………… 39
6.5 Financial Statements ……………………………………………
Assumptions ……………………………………………
Projected Income Statement ……………………………………
Projected Cash Flow Statements ……………………………………
Projected Balance Sheet ……………………………………
6.6 Financial Analysis ……………………………………
6.6a Ratios ……………………………………
Liquidity ……………………………………
Profitability Ratios ……………………………………
Solvency Ratios ……………………………………
Ii
Activity Ratios ……………………………………
6.6b Break-even Point Analysis ……………………………
6.6c Capital Recovery, Internal Rate of Return (IRR) ……
6.6d Net Present Value ……………………………………
6.6e Sensitivity Analysis – if possible
CHAPTER VII – SOCIO-ECONOMIC STUDY

7.1 Contribution to the Philippine Economy ………………….. 70
7.2 Employment Generation ………………………………….. 71
7.3 Social Desirability…………………………………………. 72
BIBLIOGRAPHY
APPENDICES
iii
1
CHAPTER I
SUMMARY OF THE PROJECT
This chapter provides a summary of the study. It contains the following: The name of the
food business, the location, and a brief description of the project that includes the logo and the
vision and mission. It also looks at the Project Summary which will tackle the following: Market
Feasibility, Technical Feasibility, Management Feasibility, Financial Feasibility, and Socio-
Economic Impact.
1.1 Name of the Business

“Delicious” is a word that describes any food that satisfies the taste of the customer. And
this word also describes our product once you take a bite of it. Puto or steamed rice in English is
one of the best Filipino food you always see on every occasion. Combining the word “delicious”
with “Puto”, the researchers have decided on “Putolicious” as the name of the enterprise.
The reason behind the name is to attract customers just by reading the name of the
enterprise. The proponents came up with the business name to convince people to buy because
they want to serve a unique, healthy, and delicious Puto dessert.
1.2 Location of the Project

The manufacturing and distribution of the product are located at Purok 5, Brgy. Alusiis,
San Narciso, Zambales, since Zambales is known for their Stop-over Pasalubong station of
native delicacies and to minimize expenses such as rent, one of the researchers’ houses located at
the said address will be used for putting up the main office to manage the manufacturing and
distribution of the said product.
1.3 Brief Discussion of the Project

Vision
Putolicious envisions becoming one of Central Luzon’s outstanding steamed cake
manufacturers and creating a healthy and unique dessert not only to give satisfaction to
customers but also affordable native delicacies.
Mission
The Mission of Putolicious is to provide unique and delicious Filipino steamed cake
desserts that will satisfy customers. Putolicious food business will continue to serve different
varieties of Puto and will innovate delicious toppings that customers will surely love.
2
Logo
Figure 1. Logo of Putolicious
The logo of the enterprise, as seen above, I s three Filipino rice steamed cakes in different
colors representing different flavors offered by the enterprise; white is for Coco Puto, yellow
represents Lemon Puto and brown is for Puto Bukayo. As emphasized, Puto is the main product
with the suffix -licious which expresses the delicious taste of the products. The flavors are
lemon, coconut, and Bukayo as mentioned. The proponents made a simple yet meaningful logo
as they visualize the enterprise and its product.
The banana leaf and the borderlines reveal the container where our products will be
placed. The materials chosen by the researchers coincide with the socio-economic responsibility
that this business promotes because the products will be placed into environment-friendly
containers; banana leaf and paper boxes. The three colors of Puto represent the three unique
flavors our business is going to offer—Lemon, Coco, and Bukayo.
1.4 Project Summary

Market Feasibility
The Market Feasibility Report demonstrates the feasibility of the project, the
administration's properties, its applications, and the item's clients. The interest investigation aids
in identifying the needs of customers, their preparedness, and their financial ability to pay for the
goods. The inquiry looks into the overall market and how it relates to the product. In a thorough
investigation, the proponents gather data by surveying the immediate competitors to see if the
project can outperform the competition on the lookout. As the interest gracefully studies shown,
the effort may compete on the lookout, which is appropriate for the firm. According to the results
of the survey, 84.7 percent of the 322 respondents use the product that is currently on the market.
86.2%
3
of those surveyed said they would buy the product. The proponents will construct a Facebook
page where they will promote their product, as well as pamphlets that will be distributed across
the San Narciso, Zambales region.
Technical Feasibility
The raw materials and equipment required for the manufacturing process are listed in the
technical feasibility. The research determines the amount of the product, costs, supplies, and the
location of the tools and equipment to be purchased, as well as the product's manufacturing
technique. The following are some examples: 1. Employees should work at least 8 hours a day
from Monday thru Saturday for a daily wage of Php350. The business hour is from 8:00 a.m. to
5:00 p.m. The packaging is a disposable paperbox that comes in a set of six and costs Php25. The
technical feasibility includes the vicinity map, the location photo, and the layout of the factory.
The enterprise will be located at Purok 5, Brgy. Alusiis, San Narciso, Zambales which is owned
by one of the proponents.
Management Feasibility
The Putolicious Enterprise is a general partnership, according to its Management
Feasibility in one of the parts of the chapter for Management Study. Putolicious is a business
with more than two owners who share responsibility and declare their respective earnings and
losses. The proponents will hire two regular workers, one to handle product manufacturing and
the other to handle consumer interactions.
Financial Feasibility
The project's financial feasibility is considered a critical component. Major assumptions
have been made by the proponents in estimating the enterprise's financial status over the
following five years, 2021-2025. The volume of production in a year, 7,176 pieces of
Putolicious, is one of
the primary assumptions. For 2021, the selling price ranges from P20.00 to P40.00. The firm will
be able to create a net income of 466,483.85, 588,117.39, 654,440.36, 733,740.49, and
812,771.69 in the anticipated income statement for the years 2021-2025. Every year, the net
income will rise. The company's cash flow and financial situation improve each year. The
planned firm is lucrative and liquid, according to the study's projections.
Socio-Economic Impact
The component of socio-economic impact is the economic, environmental, and social
ramifications. The company's goal is to serve society and the environment with a healthy and
nutritious product. The contribution of the product to the environment is covered by the
proponents' enterprise's corporate social responsibility, which will be eco-friendly advocacy.
Taxes will be paid on time to prevent any legal ramifications and to demonstrate that the
company is responsible and disciplined.
4
CHAPTER II
INTRODUCTION/BACKGROUND OF THE STUDY
This part manifests the study’s introduction to the topic stating the background of the
product for a feasibility study. Specifically, it touches on the brief background of the study, the
objectives of the study, the operational definition of the terms needed to understand, and the
scope and limitations of the study.
2.1 Brief Background of the Study
The history of the product began when the proponents realized that a simple Filipino
dessert, Puto, can be diverted to something new and unique to a consumer’s preference. The
product is blended with lemon and coconut fillings and toppings that will make the product
peculiar. These components contain various health benefits-- coconuts promote blood sugar
regulation, lemon extract is rich in Vitamin C. The proponents chose this product because its raw
materials are eco-friendly and not harmful to humans or the environment.
Puto is a steamed rice cake that is known for its slightly sweet and rice forward flavor.
The popularity of these versatile cake has caused the development at many modern puto
varieties, which often vary in texture, color, shape, size and flavor.
2.2 Objectives of the Study
Within ten years, Putolicious Food Business would have achieved the following long-range
objectives:
● to produce other variations of Flavored Puto, such as Apple Puto and Avocado
Puto;
● to create partnerships with catering services in San Antonio, Zambales to boost product
sales.
● to improve equipment such as big steamers, Automated Pouring of Puto Mixture for
faster production and higher-quality products; and
● to have additional branches within Zambales, such as Subic, Olongapo, and Botolan in
the long run.
2.3 Operational Definition of the Terms

To give light to several meanings of the words used in this feasibility study, the authors
used the following words operationally:
Puto, is a typical Filipino steamed rice cake made from slightly fermented rice dough
(Galapong). It may be eaten on its own or as a complement to a variety of savory foods
(most notably, dinuguan). Puto is also a catch-all name for a variety of indigenous steamed
cakes, including some that aren't made with rice. It is a kakanin subtype (rice cakes).
Bukayo is a Filipino version of coconut candy, and it is consist of strips of mature Buko
meat and dark brown sugar.
Coconut Flavor has long been a favorite of chefs and bakers alike and is derived as a
tropical flavor. With notes of butterscotch and caramel, this excellent taste offers a gentle
sweetness
5
Lemon Flavor, or lemon extract, is essentially the same lemony flavor as fresh lemons,
but in a more concentrated liquid form. It's commonly produced using fresh lemons and an
oil
or alcohol basis, with the peels soaked in a neutral spirit like vodka throughout the
extraction process
2.4 Scope and Limitations of the Study
In this feasibility, the main scope and limitation should be underlined for the information
of its readers.
It should be considered that the study is conducted with non-probability sampled
participants, whose opinions cannot be considered representative of the opinions of all
individuals who are related to the topic.
It is only limited to the product – Puto or Filipino steamed rice. Meaning, that the
feasibility study will only hold its ground within the premise of the nature of the product.
Anything more than the given product shall not be discussed in this study. More so, the study
will hold its domain in the locale only.
6
CHAPTER II
MARKET STUDY
In this chapter, the proponents determine the marketability of the project. It includes the
primary objectives of the study, methodology, demand, supply, demand and supplies analysis or
gap, projected sales or market sales, and marketing strategies or programs.
As stipulated, Putolicious’ Enterprise would have achieved the following long-range
objectives:
Puto;
sales;
the long run.
3.2 Methodology
Conducting online and in-person surveys were used to gather data and information for the
study. Market research, otherwise known as marketing research, is any set of techniques used to
gather information and better understand a company’s target market. Businesses use this
information to design better products, improve user experience and craft a marketing strategy
that attracts quality leads and improves conversion rates
Furthermore, surveys shall be utilized in this research. Surveys are a form of qualitative
or quantitative research that ask respondents a short series of open- or closed-ended questions,
which can be delivered as an on-screen questionnaire or via email
3.3 Demand
The demand analysis shows the estimation of market demand, and it will help to
determine if the product can successfully enter the market. It involves past and present demand
and projection of future demand.
Year Population
2017 1,438
2018 1,511
2019 1,583
2020 1,608
2021 1,633
Table 1. Historical Individual Population in Alusiis, San Narciso
Table 1 shows the Individual population of Alusiis, San Narciso, and Zambales from
2017 to 2021. Yamane’s Formula will be used to compute the number of respondents from 2017
data. The population data was gathered from the Philippine Statistics Authority.
Yamane Formula =
N
1 + N(e)2
n – the sample size

N – the population size of Alusiis, San Narciso, Zambales for
Where:
2021
e – level of precision or sampling error (5%)
N 1,633
n = = = 321.29 or 322
1 + N(e)2 1 + 1,633 (0.05)2
Percentage of Consumption Historical Demand

Year Population
Consumption Rate per serving
2017 1438 0.84 439 531,485

2018 1511 0.84 439 558,466
2019 1583 0.84 439 585,077
2020 1608 0.84 439 594,317
2021 1633 0.84 439 603,557
Table 2. Historical Demand
8
Table 2 shows the historical demand for the product for 5 years. The expected historical
demand will be used to predict Putolicious’ potential consumption.
Responses 1 piece 2 pieces 3 pieces 4 pieces 5 pieces

Everyday 5 14 9 1 3
Every other day 4 18 37 25 7
Once a week 0 8 28 43 12
Twice a week 3 3 17 21 14
Total 12 43 91 90 36
Table 3. Raw Cross Tabulation Table
Table 3 indicates how many servings are consumed by the respondents and how often
they typically consume them. It shows more individuals consume 3 pieces once a week.
1 piece 2 pieces 3 pieces 4 pieces 5 pieces TOTAL
Everyday 1,800 10,080 9,720 1,440 5,400 28,440
Every other day 720 6,480 19,980 18,000 6,300 51,480
Once a week 0 832 4,368 8,944 3,120 17,264
Twice a week 312 624 5,304 8,736 7,280 22,256
Total Annual Consumption 119,440
Divided by the total number of respondents who said yes 272
Consumption Rate 439
Table 4. Annual Cross Tabulation Table
Table 4 shows the annual consumption of the product. The results show that the
consumption rate of 439 for related products is consumed by the individuals surveyed in San
Narciso, Zambales by the proponents. Annually, the total consumption for Puto is 119,440
pieces. The consumption rate is 439.
Response No. of Respondents Percentage
Yes 199 84%
No 50 16%
Total 322 100%
Table 5. Frequency Distribution Table of Respondents Who Consume Related Products
Table 5 shows the tabulation of the respondents who consume related products. Out of
322 respondents, 84% of individuals consume Puto. The data above shows that there is a higher
percentage of those who consume related products to those who do not. There is a
likelihood of customers purchasing the product when offered in the market.
9
Frequency No. of Respondents Percentage
Everyday 32 12%
Every other day 91 33%
Once a week 91 33%
Twice a week 58 21%
Total 272 100%
Table 6. The Frequency Distribution Table of the Frequency of Related Products
Table 6 demonstrates the regular consumption of related products. It shows that the
consumers mostly buy puto every other day and once a week. This will help the proponents to
assess the average amount to produce for the satisfaction of consumer demand.
Total Percentage
1 piece 12 4%
2 pieces 43 16%
3 pieces 91 33%
4 pieces 90 33%
5 pieces 36 13%
Total 272 100%
Table 7. The Frequency Distribution Table of the Preferred Quantity of Related Products
Table 7 shows the number of servings the respondents typically consume. Out of 272
respondents, 90 individuals or 33% consume 3 pieces of Puto. This is a positive indication for
the enterprise since the respondents consume a great number of Puto.
Response No. of Respondents Percentage
Yes 277 86%
No 45 14%
Total 322 100%
Table 8. Frequency Distribution Table on the Willingness to Puto Bukayo
Table 8 shows that 86% of individuals are willing to purchase Puto Bukayo. The
collected data indicates that even if there are respondents who do not consume such products,
there is still a higher number of respondents who will purchase the product.
10
Method Standard Deviation

Arithmetic Straight Line 9,650
Arithmetic Geometric Curve 10,494
Statistical Straight Line 6,579
Statistical Parabolic Curve 1,838
Table 9. Summary of Standard Deviation Table
Table 9 shows the various methods of comparison used to compute the standard
deviation. The statistical parabolic curve obtained the least standard deviation of 1,838 based on
this table. This just suggests that it will be the best basis for calculation having the least standard
deviation.
Year Y X X^2 X^4 XY X^2Y

2017 531,485 -2 4 16 (1,062,970) 2,125,939.20
2018 558,466 -1 1 1 (558,466) 558,465.60
2019 585,077 0 0 0 - -
2020 594,317 1 1 1 594,317 594,316.80
2021 603,557 2 4 16 1,207,114 2,414,227.20
Total 2,872,901 10 34 179,995 5,692,949
Table 10. Statistical Parabolic Curve
Table 10 shows the computation of the statistical parabolic curve.
Year a b X C X^2 Yc
2021 582,130.56 17,999.52 3 (3,775.20) 9 602,152.32
2022 582,130.56 17,999.52 4 (3,775.20) 16 593,725.44
2023 582,130.56 17,999.52 5 (3,775.20) 25 577,748.16
2024 582,130.56 17,999.52 6 (3,775.20) 36 554,220.48
2025 582,130.56 17,999.52 7 (3,775.20) 49 523,142.40
Table 11. Projected Demand
Table 11 shows the next five-year projected demand using the Statistical Parabolic
Curve.
Year Projected Demand Percentage of Willingness Actual Projected Demand

2021 602,152.32 86% 525,378
2022 593,725.44 86% 518,025
2023 577,748.16 86% 504,085
2024 554,220.48 86% 483,557
2025 523,142.40 86% 456,442
Table 12. Actual Projected Demand
11
Table 12 shows the actual projected demand for the next five years. The table shows the
willingness of the consumers to buy Puto Bukayo when given the chance.
3.4 Supply
Supply Analysis represents the total quantity available to buyers of products. Supply
Analysis specifies the number of existing and projected supplies available to the market. The
supply enables the proponents to determine the performance of the competitor and it will give
the proponents ideas on how to deal with their competition. This section also contains
information regarding the raw supply table, annualized table, historical supply, the method with
the least standard deviation, the projected demand using the method with the least standard
deviation, and the actual projected supply.
Competitors Number of Puto Sold Percentage Change
A 10 30%
B 12 25%
C 9 20%
D 9 15%
E 8 20%
F 7 25%
G 6 10%
H 9 15%
I 12 25%
J 10 25%
Total 92 210%
Table 13. Raw Supply
Total Percentage Change 210%
Divided by: The number of respondents 10_
Average Percentage Change 21%
Competitors Number of Puto sold

A 520
B 624
C 468
D 468
E 416
F 364
G 312
H 468
I 624
J 520
Total 4784
Table 14. Annualized Supply
12
The table above shows the annualized supply of puto that is sold annually which has a
total of 4,784.
Total Annual supply of Puto 4,784
Divided by: Number of Interviewed Puto Sellers 10
Total 478.4
Multiply by: Total Nos. of competitors in San Narciso, Zambales 15
Estimated Annual Supply for 2022 7,176
The competitors that were interviewed in San Narciso, Zambales were 10. All
establishments have responded to the survey. The historical supply has been estimated at 7,176
in the year 2022.
Year Historical Supply
2017 2,833
2018 3,538
2019 4,479
2020 5,669
2021 7,176
Table 15. Historical Supply
The table above shows the historical supply per piece for the years 2018-2022. There is
an increasing demand for the product being observed every year.
Summary Table
Method Standard Deviation
Arithmetic Straight Line 346
Arithmetic Geometric
1,206
Curve
Statistical Straight Line 222
Statistical Parabolic Curve 12
Table 16. Summary of Standard Deviation for Supply
Table 16 shows the summary of the Standard Deviation from four different methods. It
shows that the Statistical Straight Line has the least standard deviation. Since it has the lowest
value, it could give the most reliable forecast for the supply.
13
% Inc.
Year Y Yi+1 (1+r) Yc Y-Yc (Y-Yc)^2
(Dec.)
2,833 3,573.83 1.2616 136.62 2,696.3 7,270,453.3
2017
8 9
2018 3,538 25 4,508.68 1.2616 3,573.83 (35.83) 1,283.45
2019 4,479 27 5,688.08 1.2616 4,508.68 (29.68) 881.07
2020 5,669 27 7,176.00 1.2616 5,688.08 (19.08) 364.23
2021 7,176 27
26.16 7,272,982.1
Σ
4
σ 1,206.07
Year Yi-1 (1+r) Yc

2021 7,176.00 1.2616 9,053.24
2022 9,053.24 1.2616 11,421.57
2023 11,421.57 1.2616 14,409.45
2024 14,409.45 1.2616 18,178.96
2025 18,178.96 1.2616 22,934.58
Table 17. Projected Values Using Arithmetic Geometric Curve
Year Projected Supply in a pack of puto

2021 20,374
2022 20,782
2023 21,199
2024 21,624
2025 22,057
Table 18. Annual Projected Supply

Table 18 shows the actual projected supply for the product. This is a good indication that
the Putolicious’ main product Puto Bukayo will be profitable in the market because of the
increase in supply.
14
3.5 Demand and Supply Analysis
The study of demand and supply will help the proponents to determine whether there are
variables influencing the product’s demand and supply. Demand supply analysis is meant to
assess if there is or will be a deficit between the product’s supply and demand. By obtaining the
difference between actual projected demand and projected supply, unsatisfied demand is
determined.
Actual Projected
Year Actual Projected Supply Unsatisfied Demand in Servings
Demand
2021 525,378 7,774 517,604
2022 518,025 9,527 508,498
2023 504,085 11,510 492,575
2024 483,557 13,724 469,833
2025 456,442 16,169 440,273
Table 19 Projected Unsatisfied Demand
Table 19 presents the unsatisfied demand for the years 2021- 2025. The enterprise will be
able to satisfy 12.36% of the unsatisfied demand due to its limited capacity of the enterprise.
3.6 Projected Sales

The enterprise will start its operation on January 15, 2021. The business will be open
from Monday to Saturday, 8:00 am to 5:00 pm, with a total of 26 days per month or 312 days in
a year. All employees will have a 1-hour break every 12:00nn and a-15 minutes break in the in
the morning (10:00am to 10:15am) and afternoon (3:00pm to 3:15pm).
The daily production will be 200 pieces of the 3 flavors- Bukayo, Coco and Lemon. For
the first year of production, there will be a total of 62,400 pieces. An estimated increase of 5% in
production per year is assumed.
There will be an increase of 5% in the purchases of direct and 10% in indirect materials
and the cost of materials. The increase will happen in the following years of the operation to
cover and the al increase in production. It will be on a cash basis.
Raw materials, with the exemption of fruits, will be purchased every week. Lemons will
be purchased depending on the demand of Lemon puto. There will be an increase of 5% in the
quantity of the raw materials and 3% in cost.
The selling price of Puto Bukayo would be ₱20.00 per piece, same with Coco and Lemon
puto. It would increase by 5% in the following years of production.
Annually, the enterprise will be able to sell 99.95% of its product. It is assumed
that there will be a 0.05% spoilage rate every year.
15
The employee salary is expected to increase at 3% annually depending on their
performance and evaluation.. Employee benefits composed of SSS, PhilHealth, and PAGIBIG
will be paid every month following the month it is accrued. 13th-month pay will be added which
is equivalent to a one-month salary.
3.7 Marketing Programs and Strategies
In this part of the market study, the 4 Ps of marketing is provided below to give some
insight into a critical aspect of successfully taking a product or service to market. The 4 Ps will
help the enterprise achieve its goals through good strategies and competitiveness.
3.7.A Product
Puto Bukayo is the initial product of Putolicious enterprise. This product gives
satisfaction and a new taste to the consumers and at the same time will provide a food quality
that moves customers.
Figure 2: Puto Bukayo
3.7.B. Price
The proponents will sell their product at a price of Php 20 per piece, with a minimum of 6
pieces per order for a total of 120.00/pack.
3.7.C. Place of Distribution
Putolicious enterprise production area will be located at Purok 5, Brgy. Alusiis, San
Narciso, Zambales. Nowadays, customer preferred that the product they ordered will be
delivered at their door. So, the enterprise will use a door-to-door service for the delivery. And for
them to avail our product, delivery is free with a minimum purchase of Php200. In addition,
products will be distributed to the reseller in public market of San Narciso, Zambales.
3.7.D. Promotions / Advertising

The proponents have decided to use social media for promotion. A Facebook page
is a great free marketing tools for business. The page will be use in listing and promoting the
product. Facebook advertising features include demographic targeting by Facebook user data on
age, location, education and interest; the ability to set ad budgets; built-in ad performance
measurement tools and the ability to advertise your particular area.
16
CHAPTER IV
TECHNICAL STUDY
In this part of the research, the main parts are the Objectives of the Study, Product or
Service, Manufacturing Process, Production Schedule, Machinery and Equipment, Plant
Location,
Plant Size and Layout, Raw Materials and Supplies, Utilities, Water Disposal, and Direct Labor
Requirements.
4. 1 Objective of the Study
As stipulated, Putolicious Food Business would have achieved the following long-range
objectives:
Puto;
sales;
the long run.
j4.2 Product / Service

Puto Bukayo, Lemon, and Coco are the primary products of Putolicious' business. Lemon
and coconut milk is the major component in this recipe. Bukayo is also used as a particular
topping element to the dish. Bukayo is a Filipino delicacy prepared from coconut strips that have
been sweetened. Puto bukayo is a normal-sized Puto with a diameter of 3 inches (76 mm) and a
weight of roughly 4 ounces (110 g). Because of its milky constituent, coconut milk, the product
has a pearly cream hue, and the scent is a blend of coconut milk and lemon. It will be available in
either a single or a family-sized box. There will be 6 pieces of puto in each box, while there will
be 6 pieces in the family-sized pack.
4.3 Manufacturing Process
Here are the ingredients and methosd used in the making of the product:
For making Bukayo (Toppings/filling of Puto Bukayo):
 3 cups Buko meat coconut
 1 ½ cups Brown sugar
 ½ cup Muscovado sugar
 1/2 tablespoon Buko juice or Water
How to cook Bukayo:
1 In a large saucepan, combine Muscovado sugar, dark brown sugar, and the
Coconut juice then apply heat and bring to a simmer.
2 The fire must be the lowest heat possible and cook for about 1 minute until the all the
sugar dissolves.
3 Add-in the Buko strings.
4 Mix well, make sure to evenly coat the buko strings with sugar, then cook until the
sugar syrup thickens and becomes caramelized, it will take about 15 minutes of
cooking.
5 When the Bukayo mixture becomes very sticky enough to hold its shape, then you are
done.
6 Turn off the heat, let it cool for a minute or two, then form the mixture into a flat
circle on top of a greased banana leaf, repeat the process until you’re done with the
rest of the Bukayo mixture then set aside to completely dry.
For making the Puto Bukayo:

Ingredients:
 1 cup all-purpose flour
 1/2 cup granulated white sugar
 teaspoons baking powder
 1 cup fresh milk
 1/4 teaspoon vanilla extract
 3/4 cup shredded sharp cheddar cheese
 5 cups water for steaming
 Bukayong pino
The person-in-charge of cooking the puto will combine the preliminary ingredients for
10 minutes in a mixing bowl, combine flour, and sugar. The next step is to add milk and egg for
20 minutes. Add the coconut milk, evaporated milk, and egg and mix using a whisk or electric
Mix at medium speed only until the batter becomes smooth. This is then followed by adding
water and margarine. Add the water, and margarine, then mix well (10 minutes). Next step,
grease each mold with butter and fill the molds with batter up to ¾ full for 20 minutes. The fifth
step is heating of water which needs to be approximately 5 minutes. Fill the bottom of the
steamer with water and bring to a gentle simmer over low heat.
For the next 40 minutes, the process of steaming the puto shall be done. Place the molds in
the steamer basket and steam. After that, garnish the bukayo for 15 minutes. Remove the lid of
the steamer and add bukayo on top of each puto. Then, steam for 10 minutes. Steam until the
bukayo softens. After steaming, the cooling of Puto Bukayo for 10 minutes will be next. Turn off
the heat and let it rest until slightly cooled down. The last step is to remove puto bukayo in the
molds then transfer it to a plate for the packing preparation.
18
For the packaging, the proponents will use a paper box instead of plastic container.
Prepare the paper box that will serve as the packaging for the puto. Then, the next step is placing
the puto. Transfer the puto from the plate and place the puto inside the container. The last step is
the distribution. Distribute the puto and be ready to sell.
4.4 Production Schedule

The operation is from Monday through Saturday, 8:00am to 5:00pm. Employees must be
in the premises 15 minutes before time-in and need to be in their complete uniform before
entering the premises. The following time schedule will be implemented for a day-to-day basis
of operation:
TIME PARTICULAR IN CHARGE
8:00 AM – 8:30 AM SANITIZING OF UTENSILS, COOK AND HELPER
PRODUCTION AREA AND
PROPER HANDWASHING
8:30 AM – 10:00 AM PREPARATION OF COOK
INGREDIENTS AND
MACHINERIES/COOKING
UTENSILS; MAKING 1ST
BATCH OF ORDERS
SUMMARIZING OF HELPER
COLLECTED ORDERS FROM
ONLINE/WALK-IN CLIENTS;
ANSWERING/CONFIRMING
OF ORDERS; INFORMING
SCHEDULED CUSTOMERS
FOR TODAY ABOUT THE
DELIVERY TIME.
10:00AM – 10:15 AM COFFEE BREAK
10:15 AM – 11:00 AM PACKING OF COOK/HELPER
ORDERS/PREPARATION FOR
DELIVERY
11:00 AM- 12:00 NN DOOR-TO-DOOR DELIVERY; HELPER
COLLECTING PAYMENTS
12:00 NN- 1:00 PM LUNCH BREAK
1:00 PM – 1:30 PM PREPARATION OF COOK
INGREDIENTS FOR 2ND
BATCH OF ORDERS
1:30 PM- 2:30PM COOKING OF 2ND BATCH COOK
ORDERS
SUMMARIZING OF HELPER
COLLECTED ORDERS FROM
ONLINE/WALK-IN CLIENTS;
ANSWERING/CONFIRMING
OF ORDERS; INFORMING
SCHEDULED CUSTOMERS
FOR TODAY ABOUT THE
DELIVERY TIME;
COLLECTING ADVANCE
ORDERS.
2:30 PM – 3:00 PM PACKING OF COOK/HELPER
ORDERS/PREPARATION FOR
DELIVERY
3:00 PM- 3:15 PM COFFEE BREAK
3:15 PM – 4:00 PM DOOR-TO-DOOR DELIVERY; HELPER
COLLECTING PAYMENTS
WASHING THE DISHES AND COOK
EQUIPMENT; SANITIZING
THE PRODUCTION AREA;
CHECKING OF STOCKS
4:00 PM – 4:30 PM SALES REPORT; CASH HELPER
TALLY; SECURING
COLLECTION FOR THE
SCHEDULED REMITTANCE
TO THE OWNER
4:30 PM- 5:00 PM COLLECTING ORDERS FOR COOK/HELPER
NEXT DAY; ENDING
INVENTORY OF
MATERIALS AND
INGREDIENTS; CLEANING
OF THE PRODUCTION AREA
BACHELOR OF SCIENCE IN BUSINESS
GAS TANKADMINISTRATION
Brand Name: Gasul (11kg)
Price: Php 2,245.00
Quantity: 2
GAS HOSE AND REGULATOR

Brand Name: Tokina
Price: Php 435.00
Quantity: 1
4.5 Machinery
Where to buy: Cabaltica’s Hardware
and Equipment
STEAMER Here are
Brand name: None the machinery and
Price: Php 2,999 equipment used in
STOVE
Quantity: 1 the making of the
Brand Name: Asahi
Where to buy: Lazada Philippines product:
Price: Php 1999.50
Quantity: 1
Where to buy: Cabaltica’s Hardware
MIXER
Brand name: BEBC
Price: Php 3,295.00
SPATULA
Quantity:
Brand Name:1
Where toPrice:
buy: Php
Lazada Philippines
195.00
Quantity: 1 set
Where to Buy: yky.shop
MEASURING CUP FOR DRY

INGREDIENTS
Brand Name: None
Price: 179.00
Quantity: 1 set
Where to Buy: yky.shop
MEASURING CUP FOR WET
INGREDIENTS
Brand Name: None
Price: Php 58.00
Quantity: 6 pcs.
Where to Buy: Gamason
PUTO MOULDER
Brand Name: None
Price: Php 6.00
Quantity: 100 Pcs.
Where to Buy: San Antonio Market
19
20
4.6 Plant Location, Geographical Location of Competing Companies

The Putolicious business production area will be located at Purok 5, Brgy. Alusiis, San
Narciso, Zambales. The proponents created a floor plan which demonstrates the layout of the
enterprise and the flow of the activities in the production area. It is also indicated that the
dimensions of the enterprise will be 5.5 meters by 6 meters
Figure 4: Vicinity Map

Figure 5: Establishment (Exteriorl View)
Figure 6: Establishment (Interior View)
4. 7 Plant Size and Layout

The establishment
will have different
sections: production
area where the product will
produce, storage area for the
ingredients and other
equipment, office for
sales, timekeeping
and manpower records, and
pantry area for the
employees. It will be
located at Purok 5, Brgy.
Alusiis, San Narciso,
Zambales. The plant size of
the enterprise is 5.5 meters by 6 meters.
Figure 7: Plant Layout
The pantry area is located next to the entrance, to avoid any virus and bacteria to enter the
production area, the pantry area will serve as the sanitizing area of the employees before entering
the kitchen. The comfort room is located in between the office and the pantry area for the
convenience of the employees. The office is located at the end corner of the establishment for the
safety of records and cash keeping. The storage room is located next to the production area so
that if there’s a need of ingredients or equipment, it will be easy for the production to get. Lastly,
the
kitchen and preparation area have the biggest part in the establishment so that the products will
be properly prepared and cook.
The location is convenient because the production plant is owned by one of the
proponents and the area is spacious to use as the production place. It is also an advantage for the
enterprise because the location is a residential area.
4.8 Raw Materials and Supplies

The raw materials needed in the production of Putolicious will be purchased from San
Narciso Public Market to be delivered by a chosen supplier.
Table 21. Raw Materials (1 month)
Ingredients Quantity Unit Cost Total Cost
Lemon 10 kg 30.00 300.00
Bukayo 10 Packs 50.00 500.00
Water 10 Gallons 30.00 300.00
All-Purpose Flour 50 kg 42.00 2,100.00
Sugar 30 kg 55.00 1,650.00
Coconut Milk 50 Liters 40.00 2,000.00
Eggs 60 8.00 480.00
Evaporated Milk 30 28.00 840.00
Total ₱8,170.00
Table 22. Indirect Materials (1 month)

Item Quantity Unit Price Total Cost
Paper box 200 150/ 50 pcs ₱600.00
Small Paper Bag 100 pcs 30/100 pcs 300.00
Total ₱900.00
Table 23. Cleaning Supplies (1 month)

Unit
Item Quantity Total Cost
Price
Dishwashing Liquid 6 Liters 95.00 ₱95.00
Sponge 6 pieces 15.00 90.00
Soft Broom 1 piece 100.00 100.00
Dustpan 1 piece 50.00 50.00
Trash Bin 2 pieces 100.00 200.00
Trash Bag 1 pack 50.00 50.00
Alcohol 10 liters 165.00 1,650.00
Dishtowel 50 pieces 15.00 750.00
Hand Towel 50 pieces 20.00 1,250.00
Tissue 3 packs 96.00 288.00
Spray Bleach 1 piece 125.00 125.00
Mop Set 1 piece 300.00 300.00
Rubber Gloves 5 pieces 27.00 135.00
Laundry Powder 2 packs 70.00 140.00
Total ₱5,223.00
Table 24. Office Supplies (1 month)

Quantit
Item Unit price Total Cost
y
Basic Calculator 1 160.00 ₱160.00
Ballpen 3 6.00 18.00
Record Book 1 20.00 20.00
Journal 1 150.00 200.00
Receipt 10 units 100.00 1,000.00
Plastic Cover 2 200.00 400.00
Ballpen Holder 1 250.00 250.00
Pencil 1 box 150.00 150.00
Stapler 2 pieces 94.00 94.00
Cash Box 1 piece 1,050.00 1,050.00
Total ₱3,342.00
Table 25. Production Supplies (1 month)

Item Quantity Unit price Total Cost
Apron 6 55.00 ₱330.00
Hair Net 6 30.00 180.00

Plastic
1 pack 60.00 60.00
Gloves
Face Mask 1 box 100.00 100.00
LPG 2 2,245.00 4,490.00
Total ₱6,400.00
Table 26. Other Supplies (1 month)

Item Quantity Unit Price Total Price
Fire
1 2,000 ₱2,000.00
Extinguisher
First Aid Kit 1 1,500 1,500.00
Total ₱3,500.00
4.9 Utilities (Electricity, Water, Fuel)

The utilities that will be used in the production are electricity and water. The electricity
will be used by machinery also with lighting consumptions. The payment will be included in the
rent expense.
For water, this is connected to the San Marcelino Water District. This is an important
matter for the making of the product since this is a food service.
26
4.10 Water Disposal
Waste management is one of the food business’ priorities because it is the way of
representing the cleanliness and sanitation of the management. The enterprise is located at Purok
5, Brgy. Alusiis, San Narciso, Zambales. and the garbage collection is scheduled every Saturday
3:30 in the afternoon. The employees are trained to segregate the proper disposal of the waste.
The
trash will be separated into three categories: biodegradable, non-biodegradable and recycleable.
4.11 Direct Labor Requirements
The enterprise needs two (2) employees for the operation of the business. One is
responsible for making and production while the other will be responsible for transactions with
customers and overall cleanliness and sanitation.
Here are the rundowns of the Production Costs:
Quantit
Items Unit Price Total Cost
y
All-Purpose 2
42 per pack ₱126.00
Flour
Sugar 1 55 per pack 55.00
Lemon 2 pieces 30/kg 60.00
Eggs 2 pieces 8 per piece 16.00
Evaporated Milk 1 can 28 per can 28.00
Coconut Milk 1 can 50 per can 50.00
Bukayo 500g 100/kg 50.00
Margarine 200g 50/g 200.00
Total ₱585.00
Note 2: Direct Labor

Particular Schedule Total Cost
Daily Salary ₱413.00
Multiply by: No. of
2
Employees
Total 826.00
SSS Contribution Daily 1 75.17
PAGIBIG Contribution Daily 2 7.69
Philhealth Contribution 3 14.46
Adtl: 13th Month Pay 4 68.83
Total direct Labor 992.15
Divided by: No of Units Produced Daily 200
Cost of Direct Labor per Unit ₱4.96
27
Schedule 1: SSS Contribution
SSS Monthly Contribution of 2 Employees ₱902.50
Multiply by: No. of Months 26
Total 23,452.00
Divided by days per Year 312
Total Daily SSS Contribution ₱75.17
Schedule 2: PAGIBIG Contribution

Pag-Ibig Monthly Contribution ₱100.00
Divided by days per Month 26
Total 3.85
Multiply by: No. of Employees 2
Total Daily Pag-Ibig
₱7.69
Contribution
Schedule 3: Philhealth Contribution

Philhealth Monthly Contribution ₱187.92
Divided by: No. of days per

26
Month
Total 7.23
Total Daily Pag-Ibig Contribution ₱14.46
Schedule 4: 13th Month Pay

Total Monthly Wage of Employee ₱10,738.00
Total Monthly Salary 21,476.00
Divided by: No. of days per Year 312
Total Daily 13th Monthly Pay 68.83
Note 3: Indirect Materials

Paper box 200 150/ 50 pcs ₱600.00
Small Paper Bag 100 30/100 pcs 300.00
Total ₱900.00
Note 4: Rent Expense

Rent Expense in a Month ₱15,000.00
Divided by: Number of Working Days in a Month 26
Total ₱576.92
28
CHAPTER V
MANAGEMENT STUDY
The management study chapter is an important aspect of a business project because
Its purpose is to analyze if the project meets certain criteria. It outlines the enterprise’s basic and
primary considerations, the form of ownership, the organizational chart or structure, the list of
officers and key personnel, and the enterprise’s operation’s rules and regulations.
In this part, management is the highlight. With this, the main parts are the Objective of
the
Study, the form of Business Ownership, Capitalization, Organizational Structure, Manpower and
Requirements, Compensation, Organizational Policies, and Legal Requirements.

The goal of the Putolicious business is to supply customers with delicious and
economical snacks that will satisfy them. Puto Bukayo is a well-known Filipino snack noted for
its creamy and sweet flavor. It goes well with coffee in the morning, dinuguan for lunch,
and juice/soda for snacks.
The objective of the proponents is to build a profitable and well-known puto company
that will be able to develop and thrive while also creating jobs that will help the economy.
As stipulated, Putolicious’ Enterprise would have achieved the following long-range
objectives:
● to produce other variations of Lemon Coco Puto, such as Apple Puto and Avocado
Puto;
sales;
the long run.
5.2 Form of Business Ownership

According to Cortes (2019), Some business owners choose different forms of
organization
to satisfy their specific needs in addition to the three most generally used types of business
organization: sole proprietorship, partnership, and regular or general corporations. There are two
types of limited-liability businesses that we'll look at. Corporations that are not for profit (Cortes,
2019).
A general partnership is the kind of business ownership Putolicious is all about. The
proponents have resolved to share earnings and losses equally and to contribute equal amounts of
capital. The goal of having a partnership is to make money while also allowing the company to
grow and manufacture more distinct types of puto.
5.1 Organizational Structure
The modes of operation and performance of an organization will be determined by its

structure. It provides for the explicit assignment of responsibility for various activities and
procedures to distinct entities, as well as the hierarchical idea of subordination of entities
that interact and contribute to a shared goal.
5.4 Manpower and Requirements

This aspect presents the job descriptions and job specifications of the enterprise.
1. General Managers
The general managers are the food business owners and are responsible for overseeing
daily business activities, improving overall business functions, training heads of departments,
managing budgets, developing strategic plans, creating policies, and communicating business
goals. In operating the company, each partner has an assigned role and responsibility.
Job Qualifications:
● Male or Female, from 20-30 years old
● Must have personal traits and attributes
● Must have the skill to accomplish the work assigned
● Must have good communication skills
● Must have personal ongoing self-development and personal growth as an employee
2. Workers
Putolicious enterprise must hire two (2) workers. One for production and one for
manufacturing.
Job Qualifications:
● Female or male, from 20-30 years old
● High school graduate; vocational
● Customer-oriented
● Must have a good moral character
● Must have good time management skills
● Must know food production methods
● Willing to train in Basic digital marketing
● Knowledgeable in making sales report and cash handling
30
5.5 Compensation
Employees will undergo training provided by the management; 7-10 days maximum of
training days with pay will be given. Following the Zambales minimum wage of ₱395 per day,
the employee must get their salary on every 15th and 30th of the month. The employee who
works overtime will be compensated at a higher rate than the standard salary of ₱43.75 per hour.
Each employee will be given a 1-day rest day per week.
5.6 Organizational Policies
Below are the rules and regulations an employee should strictly follow. This is for the
sake of the Putolicious management to monitor a friendly and organized environment.
a. Time Keeping
The record book will determine and monitor the attendance of the employees. A
worker is required to log their time of arrival and departure on a record book provided. They are
required to work 8 hours, 6 days a week. Punctuality must be observed.
b. Tardiness and Absences
If the employee comes to work fifteen minutes after the scheduled time-in, a verbal
warning will be given for first offense. 2 nd offense, it is considered late and is applicable for
deduction of salary and a written warning.
An employee who will not attend work due to valid reasons shall inform the management
upon a time so that there will be no salary deduction. A no call, no show is applicable for
deduction of salary and a warning coming from the management.
c. Working Hours and Breaks
An employee is required to work from 8 in the morning until 5 in the afternoon. A one-
hour break and 15 minutes coffee break will be given to each employee. Punctuality is highly
appreciated as it is a way to determine their discipline and commitment to work.
Loitering, sleeping, and abuse of rest hours shall be given a penalty. Before leaving the
area of work, inform personnel and sign the record book. The employee may leave early for valid
reasons or emergency matters if the management authorized them to.
d. Compensation
The employee shall receive their salary on or before every 15th and 30th day of every
month following the minimum wage implemented in Zambales which is ₱350 per day.
e. Overtime
The employee who renders overtime shall be given additional compensation which is the
regular wage amounting to ₱43.75 per hour.
f. Rest Period
Every employee is given a rest day, once a week. Although they are entitled to attend
work on holidays in return, they will be compensated according to the provisions of the labor
code.
g. Benefits
The employee is entitled to benefits such as SSS, PhilHealth, and PAGIBIG
contributions. Their contributions are automatically deducted from their salary from the
employer.
h. 13th Month Pay

The 13th month’s pay will be given on or before December 24 equivalent to one
month salary.
Here are the business rules
a. Health and Sanitation
One of the top priorities of the management is to maintain the cleanliness and sanitation
of the vicinity. Before and after using the workplace, ensure that it is clean and sanitized to avoid
any illnesses and other health complications.
b. Uniform
The employee should wear a proper uniform provided by the management which is the
following: full hair net, apron, plastic gloves, and surgical mask for sanitary purposes.
c. No eating
For the sake of product quality, employees shall not eat during work hours.
d. Usage of gadgets
To avoid any mistakes, employees need to focus on their job to finish their work
properly. Part of their commitment is to be dedicated to their job. That is why the usage of
gadgets is prohibited during work hours. But an exemption is given to the helper who is in
charge of the online selling and posting in the enterprise’ Facebook page.
e. Incentives
An employee can receive an incentive for completing an attendance for a month without
absences or tardiness. Gift certificate provided by the management will be given.
f. Opening and Closing Time
The workplace must open at exactly 8 in the morning and close at 5 in the afternoon.
g. Tools and Equipment
The tools and equipment must be properly operated with care so there will be no delay
and problem in the production. Equipment that was damaged due to the carelessness of an
employee shall be deducted from their salary.
h. Termination of Employee
An employee may be terminated from a job of their own free will or following a decision
made by the employer. Employers who execute a termination of employment may do so for
several reasons, including downsizing, poor job performance, or redundancies. 5 consecutive
days of no call, no show absence will also be terminated as the employee failed to inform the
employer and negligence in performing their commitment to their job.
5.7 Legal Requirements
Aside from the permits needed for a food corporation or business, Putolicious shall be
needing essential components for food services. An essential component of an efficient food
control system is a national legislative framework. Food is controlled by a complex collection of
rules and regulations in all nations, which outline the government's criteria for food chain
operators to meet to assure food safety and quality. The word "food law" refers to legislation that
governs food production, trading, and handling, and so includes food control, food safety,
quality, and other
elements of food trade along the full food chain, from animal feed to the consumer (Food and
Agriculture Organization of the United Nations, 2018).
32
CHAPTER VI
FINANCIAL STUDY
Through various financial statements and financial analysis, the financial study
demonstrates the project's viability and profitability. The primary assumptions, as well as
financial statistics for the next five years of the enterprise's operation, are shown in this chapter.
This will serve as the foundation for determining and achieving a company's success. The
income statement, balance sheet, and cash flow are all important assumptions in the financial
analysis. This chapter also includes a variety of financial analysis methodologies that were
used to investigate the liquidity, solvency, profitability, kind of financial leverage, and capital
investment test.
With this, the valuable parts of this research are the following: Objectives of the Study,
Total Project Costs, Initial Capital Requirements, Sources of Financing, Financial Statements,
and Financial Analysis
The Putolicious company's mission is to provide clients with tasty, low-cost snacks that
will please them. The creamy and sweet flavor of the main product which is Puto Bukayo is a
well-known Filipino food. For breakfast, it's good with coffee, dinuguan for lunch, and
juice/soda for snacks. The proponents' goal is to create a successful and well-known Puto
business that will be able to grow and prosper while also helping the economy by providing
employment.
Given a repetition, Putolicious’ Enterprise would have achieved the following long-range
objectives:
Puto;
sales.
the long run.
● 6.2 Total Project Cost
Perpendicular to that, here is the Project Costings:

Particulars Note Amount
Machinery and Equipment 1 ₱28,192.50
Furniture and Fixtures 2 8,000
Tools and implements 3 2,748.00
Production Supplies 4 6,400.00
Office Supplies 5 3,342.00
Prepaid Rent 6 30,000.00
Cleaning Supplies 7 5,223.00
Other Supplies 8 3,500.00
Taxes and Licenses 9 8,661.00
Salaries Expense 10 21,808.30
Indirect Materials 11 900.00
Cost of Raw Materials 12 15,210.00
Feasibility Cost 13 500.00
Total Project Cost ₱134,484.80
Contingency Fund (15%) 20,172.72
Total Initial Investment ₱154,657.52
Note 1: Machinery and Equipment

Item Unit Price Quantity Total
Refrigerato
₱19,899.00 1 19,899.00
r
Steamer 2,999.00 1 2,999.00
Stove 1,999.50 1 1,999.50
Mixer 3,295.00 1 3,295.00
Total Manufacturing Equipment ₱28,192.50
Note 2: Furniture and Fixture

Item Total
Dining Table ₱8,000.00
Note 3: Tools and Implements

Item Quantity Unit Price Total
Mixer 1 piece 540.00 ₱540.00
Puto Molder 1 set 120.0 120.00
Measuring Cups 1 set 89.00 89.00
Steamer 1 piece 389.00 389.00
Silicon Brush 1 piece 300.00 300.00
Mixing Bowls 1 set/ 6 pcs 599.00 599.00
Flour Scoop 1 set 88.00 88.00
Tray 5 pieces 120.00 600.00
Spoon 1 set/15 pcs 50.00 50.00
Total ₱2,748.00
Note 4: Production Supplies

Item Quantity Unit price Total Cost
Apron 6 55.00 ₱330.00
Hair Net 6 30.00 180.00
Plastic
1 pack 60.00 60.00
Gloves
Face Mask 1 box 100.00 100.00
LPG 2 2,245.00 4,490.00
Total ₱6,400.00
Note 5: Office Supplies

Item Quantit Unit price Total Cost
y
Basic Calculator 1 160.00 ₱160.00
Ballpen 3 6.00 18.00
Record Book 1 20.00 20.00
Journal 1 150.00 200.00
Receipt 10 units 100.00 1,000.00
Plastic Cover 2 200.00 400.00
Ballpen Holder 1 250.00 250.00
Pencil 1 box 150.00 150.00
Stapler 2 pieces 94.00 94.00
Cash Box 1 piece 1,050.00 1,050.00
Total ₱3,342.00
Note 7: Cleaning Supplies

Unit
Item Quantity Total Cost
Price
Dishwashing Liquid 6 Liters 95.00 ₱95.00
Sponge 6 pieces 15.00 90.00
Soft Broom 1 piece 100.00 100.00
Dustpan 1 piece 50.00 50.00
Trash Bin 2 pieces 100.00 200.00
Trash Bag 1 pack 50.00 50.00
Alcohol 10 liters 165.00 1,650.00
Dishtowel 50 pieces 15.00 750.00
Hand Towel 50 pieces 20.00 1,250.00
Tissue 3 packs 96.00 288.00
Spray Bleach 1 piece 125.00 125.00
Mop Set 1 piece 300.00 300.00
Rubber Gloves 5 pieces 27.00 135.00
Laundry Powder 2 packs 70.00 140.00
Total ₱5,223.00
Note 8: Other Supplies

Item Quantity Unit Price Total Price
Fire
1 2,000 ₱2,000.00
Extinguisher
First Aid Kit 1 1,500 1,500.00
Total ₱3,500.00
Note 9: Taxes and Licenses

Particulars Schedule Total Cost
Municipal License 1 ₱2,356.00

Food and Drug Administration Approval 2 2,600.00
Securities and Exchange Commission
3 2,585.00
Registration
Depart of Trade and Industry Registration 4 515.00
Bureau of Internal Revenue Registration 5 605.00
Total Taxes and Licenses ₱8,661.00
Note 10: Salaries Expense
Daily Salary of 2 Employees ₱413.00

Number of working days 26
Total 10,738.00
SSS Contribution 75.17
Philhealth Contribution 14.46
Pag-ibig Contribution 7.69
13th Month Pay 68.83
Total 10,904.15
Multiply by: No. of
2
Employees
Total Monthly Salary ₱21,808.30
Note 11: Indirect Material

Clear Container Plastic 200 150/ 50 pcs ₱600.00
Small Paper Bag 100 pcs 30/100 pcs 300.00
Total ₱900.00
Note 12: Cost of Raw Materials

Items Quantity Unit Price Total Cost
All-Purpose 2
42 per pack ₱126.00
Flour
Sugar 1 55 per pack 55.00
Lemon 2 pieces 30/kg 60.00
Eggs 2 pieces 8 per piece 16.00
Evaporated Milk 1 can 28 per can 28.00
Coconut Milk 1 can 50 per can 50.00
Bukayo 500g 100/kg 50.00
Margarine 200g 50/g 200.00
Total Daily Cost ₱585.00
Multiply by No. of days in a month 26

Total Monthly Cost ₱15,210.00
Note 13: Feasibility Cost

Product Making 500.00
Total Feasibility Cost ₱500.00
Schedule 1: Municipal license

Particulars Total cost
Mayor’s Permit ₱200.00
Secretary’s Permit 200.00
Cedula 6.00
Business Plate 150.00
Business establishment inspection fee 200.00
Sanitary Business fee 100.00
Initial Tax (0.5% of initial capital) 1,500.00
Total Cost ₱2,356.00
Schedule 2: Food and Drug Administration Approval

Particulars Total Cost
FDA Licensing ₱2,500.00
Authentication
100.00
fees
Total Cost ₱2,600.00
Schedule 3: Securities and Exchange Commission

Official Reservation of business name ₱40.00
The filing fee for Articles of
1,000.00
Incorporation
Issuance fees 1,000.00
Bylaws fee 470.00
Membership book registration fee 75.00
Total cost ₱2,585.00
Schedule 4: Department of Trade and Industry Registration

Business Name
₱500.00
Registration
Documentary Stamp 15.00
Total cost ₱515.00
Schedule 5: Bureau of Internal Revenue

BIR Registration ₱500.00
Certification fee 15.00
Total Cost ₱605.00
6.3 Initial Capital Requirements

The daily production will be 200 pieces of Puto Bukayo, Lemon Puto and Coco Puto. For
the first year of production, there will be a total of 62,400 pieces. An estimated increase of 5% in
the production per year is assumed.
1. Purchases - There will be an increase of 5% in the purchases of direct and 10% in
indirect materials and the cost of materials. The increase will happen in the following
years of the operation to cover the annual increase in production. It will be on a cash
basis.
2. Raw Materials - Raw materials, with the exemption of fruits, will be purchased weekly.
Lemons will be purchased every day. There will be an increase of 5% in the quantity of
the raw materials and 3% in cost.
3. Selling Price - The selling price of the flavored puto will be ₱ 20.00 each. It would
increase by 5% in the following years of production.
4. Sales Annually, - the enterprise will be able to sell 99.95% of its product. It is assumed
that there will be a 0.05% spoilage rate every year.

5. Salaries Expenses - (Direct Labor and Employees Benefits)
The employee salary is expected to increase at 3% annually. Employee benefits

composed of SSS, PhilHealth, and PAGIBIG will be paid every month following the month it is
accrued. 13th-month pay will be added which is equivalent to a one-month salary.
6. Tools and Implements
The proponents will be adding production tools every year. The cost of other tools is
estimated to increase by 3% per year.
7. Indirect Materials For the indirect materials, it is assumed to increase by 5% and 10% in
the quantity. This gives a total of 15% increase in the number of productions created
annually.
8. Office, Manufacturing, and Cleaning Supplies The proponents believe that all supplies’
costs will increase by 3% yearly due to the assumption of increased production.
9. Depreciation
The Refrigerator is estimated to have a useful life of 5 years. The enterprise will be using
the straight-line method of depreciation. There will be no salvage value for property and
equipment.
10. Rent Expense
The rent expense costs Php 15,000.00. It includes the utility expense.
11. Utilities’ Expense
The utilities such as the water and electricity were already included in the rent
payment.
12. Advertising
The proponents will use social media like Facebook in advertising the product.
13. Partner’s Investments
Each of the partners will contribute Php 40,000.00 for the initial investment of the
business.
14. Withdrawal
Each of the patterns can withdraw 20% of its share in the net income at the beginning of
the second year of operation.
15. Taxes and Licenses
Costs of taxes and licenses are expected to be the same.

16. Income Tax
The enterprise is subject to the normal rate of an income tax rate of 30%. The payment
for the income tax is quarterly.
6.4 Sources of Financing
As stated in the book of EHL Insights, “Restaurant Management: Financing your Food
Business”, Self-Financing could be money from an investment account, money from a savings
account, or money from selling goods you own (such as a house or a car). You might even start
your business on a modest scale by deducting a portion of your salary from each paycheck and
spending it as a necessity.
Self-financing is a frequent technique employed in the early phases of food
entrepreneurship, such as when a new business owner is trying out different recipes to see what
works best for their customers. However, the method can be effective at any moment. There are
no ties associated with utilizing the money to support your business because it belongs to the
owner (EHL Insights, 2017).
In this case, the Putolicious shall be using a self-financing source of finance to be able to
make the capital and be able to continue the product. There might be sponsors but most of the
budget and capital shall be from self-financing.
40
6.5 Financial Statement

Putolicious Enterprise
Projected Comprehensive Income
For the Years Ended December 31, 2021-2025
(IN PESO)
Notes 2021 2022 2023 2024 2025

Net Sales 1 1,248,000 1,351,678 1,465,230 1,584,486 1,716,686
Less: Cost of Goods Sold 2 534,426.50 473,956.06 484,732.92 496,804.78 507,684.79
Gross Profit 713,573.50 877,721.54 980,497.08 1,087,680.98 1,209,001.61
Less: Operating Expenses 3 47,168.0 37,553.8 45,582.3 39,480.3 47,899.2
Income before Tax 666,405.50 840,167.70 934,914.80 1,048,200.70 1,161,102.41
Less: Tax (30%) 4 199,921.65 252,050.31 280,474.44 314,460.21 348,330.72
Net Income 466,483.85 588,117.39 654,440.36 733,740.49 812,771.69
41
Note 1: Net Sales Schedule 2021 2022 2023 2024 2025

Annual Production 1 62,400 65,520 68,952 72,384 76,128
Less: Product Spoilage 2 31 33 34 36 38
Total Products Sold 62,369 65,487 68,918 72,348 76,090
23.2
Multiply by: Selling Price 3 20.6 21.22 21.86 22.52

Total Net Sales 1,284,801 1,389,634 1,506,547 1,629,277 1,765,288
Note 2: Cost of Goods Sold Schedule 2021 2022 2023 2024 2025
Raw Materials 4 198,600.00 127,967.28 129,349.33 130,746.30 132,158.36
Direct Labor Cost 5 304,388.00 314,383.64 323,610.55 334,116.27 343,413.75
Factory Overhead 6 31,438.50 31,605.14 31,773.04 31,942.21 32,112.67
Cost of Goods Sold 534,426.50 473,956.06 484,732.92 496,804.78 507,684.79
42
Note 3: Operating Expense Schedule 2021 2022 2023 2024 2025
General Expense 7 47,168.0 37,553.84 45,582.28 39,480.28 47,899.20
Total Operating Expense 47,168.0 37,553.84 45,582.28 39,480.28 47,899.20
Schedule 1 - Annual Production

Schedule 2021 2022 2023 2024 2025
Daily Production 200 210 221 232 244
Multiply by no. of working days 312 312 312 312 312
Annual Production 62,400 65,520 68,952 72,384 76,128
Schedule 2 - Spoilage
Schedule 2021 2022 2023 2024 2025
Annual Production 62,400 65,520 68,952 72,384 76,128
Multiply by: Percentage of spoilage 0.05% 0.05% 0.05% 0.05% 0.05%
Total Spoilage 31 33 34 36 38
43
Schedule 3- Selling Price
Schedule 2021 2022 2023 2024 2025
Price per unit from the previous year 20.00 20.6 21.22 21.86 22.52
Multiply by a yearly increase in the n
selling price 0.03 0.03 0.03 0.03
Selling price 20.00 20.63 21.25 21.89 22.55
Schedule 4 - Raw Materials 44

Schedule 2021 2022 2023 2024 2025
All-Purpose Flour 45,360.00 45,849.89 46,345.07 46,845.59 47,351.53
Schedule
Sugar 5- Labor Cost 19,800.00 20,013.84 20,229.99 20,448.47 20,669.32 45
Lemon Schedule 2021
21,600.00 2022
21,833.28 2023
22,069.08 2024
22,307.43 2025
22,548.35
Daily
Eggs Salary 413
5,760.00 425.39
5,822.21 438.1517
5,885.09 451.296251
5,948.65 464.8351385
6,012.89
Multiply by Milk
Evaporated no of working days/month 26
10,080.00 26
10,188.86 26
10,298.90 26
10,410.13 26
10,522.56
Monthly Salary per worker 10,738.00 11,060.14 11,391.94 11,733.70 12,085.71
18,790.29
Multiply by no of workers
Coconut Milk 2
18,000.00 2
18,194.40 2
18,390.90 2
18,589.52 2
Total
BukayoMonthly Salary of two workers 21,476.00
6,000.00 22,120.28
6,064.80 22,783.89
6,130.30 23,467.41
6,196.51 24,171.43
6,263.43
Multiply
Margarineby no of months in a year 12
72000.00 12
72777.60 12
73563.60 12
74358.08 12
75161.15
Annual Salaries of workers 257,712.00
198600.0 265,443.36 273,406.66 281,608.86 290,057.13
Add:
TotalEmployee Benefits
Direct Materials 8 0 127967.28 129349.33 130746.30 132158.36
20,640.00
SSS 18,600.00 19,620.00 19,620.00 20,640.00
Pag-Ibig 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00

PhilHealth 4,200.00 4,800.00 5,400.00 6,000.00 6,145.20
Add: 13th-month pay 21,476.00 22,120.28 22,783.89 23,467.41 24,171.43
Direct Labor Cost 304,388.00 314,383.64 323,610.55 334,116.27 343,413.75
Schedule 8 - Employees Benefit Schedule 2021 2022 2023 2024 2025
Schedule 6- Factory Overhead Schedule 2021 2022 2023 2024 2025
SSS Monthly Contribution 775.00 817.50 817.50 860.00 860.00
Indirect Materials 9 10,800.00 10,916.64 11,034.54 11,153.71 11,274.17
Multiply by: No. of Months 12 12 12 12 12
Rent Expense 10 15,000.00 15,050.00 15,100.00 15,150.00 15,200.00
Annual Contribution 9,300.00 9,810.00 9,810.00 10,320.00 10,320.00
Depreciation Expense 11 5,638.50 5,638.50 5,638.50 5,638.50 5,638.50
Multiply by: No. of workers 2 2 2 2 2
Total Factory Overhead 31,438.50 31,605.14 31,773.04 31,942.21 32,112.67
Total Annual SSS Contribution 18,600.00 19,620.00 19,620.00 20,640.00 20,640.00
Pag-ibig Monthly Contribution 100.00 100.00 100.00 100.00 100.00

Schedule 7- General Expenses Schedule 2021 2022 2023 2024 2025
Supplies Expense 12 38,117.00 34,247.84 42,276.28 36,174.28 44,593.20
Feasibility Cost 13 500
Multiply by: No. of Workers 2 2 2 2 2
Taxes and License Expenses 14 5,951 706 706 706 706
Total Annual Pag-ibig Contribution 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Registration to FDA 2,600

Total General Expense 47,168.0 34,953.84 42,982.28 36,880.28 45,299.20
Philhealth Monthly Contribution 175.00 200.00 225.00 250.00 256.05
46
47
Total Annual Philhealth Contribution 4,200.00 4,800.00 5,400.00 6,000.00 6,145.20
13th Monthly Salary

Month Salary 10,738.00 11,060.14 11,391.94 11,733.70 12,085.71
Total 13th Month Pay 21,476.00 22,120.28 22,783.89 23,467.41 24,171.43
Schedule 9 - Indirect Materials Schedule 2021 2022 2023 2024 2025
Clear Container Plastic 7,200.00 7,277.76 7,356.36 7,435.81 7,516.12
Small Paper Bag 3,600.00 3,638.88 3,678.18 3,717.90 3,758.06
Total Indirect Materials 10,800.00 10,916.64 11,034.54 11,153.71 11,274.17
Schedule 10 - Rent Expense Schedule 2021 2022 2023 2024 2025

Monthly Rent 1,250.00 1,254.17 1,258.33 1,262.50 1,267.00
Multiply by: No. of Months 12.00 12.00 12.00 12.00 12.00
Total Rent Expense 15,000.00 15,050.04 15,099.96 15,150.00 15,204.00
Schedule 11 - Depreciation Expense 2021 2022 2023 2024 2025 48

Total Cost of Equipment 28,192.50 22,554 16,915.50 11,277 5,638.50
Divided by: Useful Life 5 4 3 2 1
Total Depreciation Expense 5,638.50 5,638.50 5,638.50 5,638.50 5,638.50

Schedule 12 - Supplies Expense Schedule 2021 2022 2023 2024 2025
Tools and Implements 15 2,775.00 708.64 2,646.95 751.80 3,148.79

Office Supplies 16 16,466.00 16,325.68 16,651.09 16,982.94 17,321.36
Schedule 13- Feasibility Cost Schedule 2021 2022 2023 2024 2025
Schedule 17
15 - Production
Tools and Implements
Supplies Schedule
Schedule 2021
2021 2022
2022 2023
2023 2024
2024 2025
2025
Mixer 540.00 LYCEUM OF SUBIC BAY, INC. 4,046.00
Product Sample 500.00
Puto Molder
Apron COLLEGE OF BUSINESS
3,960.00
120.00 127.31 ADMINISTRATION
4,002.77 135.06
Total Cost 500.00
Measuring Cups Production Supplies 89.00 17 8,040.00 6,976.80 11,236.30 7,258.66 11,690.24
Steamer
Hair Net 389.00
2,160.00 2,183.33 412.69
2,206.91 2,230.74 437.82
2,254.83
Schedule 14- Taxes and License Expense Schedule 2021 2022 2023 2024 2025
Silicon Gloves
Plastic Brush Cleaning Supplies 300.00
720.00 727.78
18 735.64
7,336.00 743.58
6,666.72 337.65
751.61
7,580.35 6,936.06 8,103.09
Mixing
Face Bowls
Mask 599.00
1,200.00 1,212.96 635.48
1,226.06 1,239.30 674.18
1,252.69 4,329.73
Mayor's Permit 200.00
Flour Scoop
Total Production SuppliesOther Supplies 88.00
8,040.00 90.64
4,124.06
19 93.36
8,171.37
3,500.00 96.16
4,213.62
3,570.00 99.04
8,305.13
4,161.60 4,244.83
Secretary's Permit 200.00 200.00 200.00 200.00 200.00
Tray 600.00 618.00 636.54 655.64 675.31
Cedula 6.00 200.00 200.00 200.00 200.00
Business Plate 150.00 6.00 6.00 6.00 6.00
Total Supplies Expense 38,117.00 34,247.84 42,276.28 36,174.28 44,593.20
Business establishment inspection fee 200.00
Spoon 18- Cleaning Supplies
Schedule 50.00 741.57 789.73
Sanitary Business fee 100.00 200.00 200.00 200.00 200.00
Total Tools and
Dishwashing
Schedule Implements
-Liquid 2,775.00
1,140.00 708.64
1,140.12 2,646.95
1,140.25 751.80
1,140.37 3,148.79
1,140.49
Initial Tax13(0.5%
Prepaid Expense
of initial capital) 2021
1,380.00 2022
100.00 2023
100.00 2024
100.00 2025
100.00 49
Add: Prepaid Rent
SEC Payments: 30,000.00
Total Prepaid Rent of
Expense 30,000.00 50
Official Reservation business name 40.00
Schedule 16 - Office Supplies
Sponge Schedule 2021
1,080.00 2022
1,080.12 2023
1,080.23 2024
1,080.35 2025
1,080.47
The filing fee for articles of
Basic
Soft Calculator
Broom
Schedule 14 - Furniture & Fixture Schedule 160.00
1,200.00
2021 2022 1,212.96
2023 2024 1,226.06
2025
Incorporation 1,000.00
Ballpen
Dustpan
Dining 216.00
600.00 217.77 219.54
606.48 221.31 223.08
613.03
IssuanceTable
fees Set 8,000.00
1,000.00
RecordBin
Trash Book 240.00
2,400.00 241.77 243.54 245.31 247.08
2,425.92
Total
BylawsFurniture
fee and Fixture 8,000.00
470.00
JournalBag
Trash 2,400.00
600.00 2,401.77
606.48 2,403.54
613.03 2,405.31
619.65 2,407.08
626.34
Membership book registration fee 75.00
Receipt
Alcohol 1,000.00
19,800.00 20,013.84 20,229.99 20,448.47 20,669.32
DTI Payments:
Dishtowel 9,000.00 9,097.20 9,195.45 9,294.76 9,395.14 51
Business Name Registration 500.00
Hand Towel 1,500.00 1,516.20 1,532.57 1,549.13 1,565.86 52
Plastic Cover
Tissue 4,800.00
3,456.00 4,801.77
3,493.32 4,803.54
3,531.05 4,805.31
3,569.19 4,807.08
3,607.74
BIR Payments:
Ballpen
Spray Bleach
Holder 3,000.00
1,500.00 3,001.77
1,516.20 3,003.54
1,532.57 3,005.31
1,549.13 3,007.08
1,565.86 53
BIR Registration 500.00
Pencil
Mop 1,800.00
3,600.00 1,801.77 1,803.54
624.24 1,805.31 1,807.08
649.46
Stapler Gloves
Rubber 1,128.00
1,620.00 1,129.77
1,637.50 1,131.54
1,655.18 1,133.31
1,673.06 1,135.08
1,691.13
Laundry
Cash BoxPowder 1,050.00
1,680.00 1,698.14 1,716.48 1,735.02 1,753.76
Certification fee Supplies 15.00
Total Cleaning 11,816.00
49,176.00 10,664.86
41,799.12 10,673.71
44,670.50 10,682.57
42,659.12 10,691.42
48,010.57
Schedule 19 – Other Supplies 54

Fire Extinguisher 2,000 2,021.60 2,043.43 2,065.50 2,087.81
First Aid Kit 1,500 1,516.20 1,532.57 1,549.13 1,565.86
Total Other Supplies 3,500 3,538 3,576 3,615 3,654
Schedule 11 – Depreciation Expense

Total Cost of Equipment 28,192.50 22,554 16,915.50 11,277 5,638.50
Total Depreciation Expense 5,638.50 5,638.50 5,638.50 5,638.50 5,638.50
55
Photolicious Enterprise
Projected Financial Position
Notes 2021 2022 2023 2024 2025

ASSETS
CURRENT ASSETS
Cash and Cash Equivalent 4 784,578.00 1,195,593.22 1,565,649.04 1,937,907.80 2,307,215.66
TOTAL CURRENT ASSETS 784,578.00 1,195,593.22 1,565,649.04 1,937,907.80 2,307,215.66
NON-CURRENT ASSETS
Equipment 18,555.20 13,916.40 9,277.60 4,638.80 -
TOTAL NON-CURRENT ASSETS 18,555.20 13,916.40 9,277.60 4,638.80 -
TOTAL ASSETS 803,133.20 1,209,509.62 1,574,926.64 1,942,546.60 2,307,215.66
LIABILITIES AND PARTNER'S 56

EQUITY
Employee Benefits Payable 2100 2235 2285 2420 2432.10
Income Tax Payable 199,548.20 252,543.62 282,244.64 317,747.60 353,581.56
Utilities Payable 15000 15050 15100 15150 15200
TOTAL LIABILITIES 216648.2 269828.62 299629.64 335317.6 371213.66
PARTNER'S EQUITY
BOADO, CAPITAL PE 195,495 313,227.00 425,099.00 535,743 645334
GUILLEN, CAPITAL PE 195,495 313,227.00 425,099.00 535,743 645334
ESPIRITU, CAPITAL PE 195,495 313,227.00 425,099.00 535,743 645334
TOTAL PARTNER'S EQUITY 586,485 939,681.00 1,275,297.00 1,607,229.00 1,936,002.00
TOTAL LIABILITIES AND
PARTNER'S EQUITY 803,133.20 1,209,509.62 1,574,926.64 1,942,546.60 2,307,215.66
Note 4: Cash and Cash Equivalent
Cash in Bank 774,578.00 1,185,593.22 1,555,649.04 1,927,907.80 2,297,215.66
Petty Cash Fund 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Total 784,578.00 1,195,593.22 1,565,649.04 1,937,907.80 2,307,215.66
57
Note 5 Equipment
Refrigerator
Note 6 Employee Benefit Payable 19,899.00 19,899.00 19,899.00 19,899.00 19,899.00 58
Divided
SSS by: Useful Life
Payable 5
1,550.00 5
1,635.00 5
1,635.00 5
1,720.00 5
1,720.00
Subtotal Payable
Philhealth 3979.8
200.00 3979.8
200.00 3979.8
200.00 3979.8
200.00 3979.8
200.00
Total Equipment
Pag-ibig Payable 19,899.00
350.00 15,919.20
400.00 11,939.40
450.00 7,959.60
500.00 3,979.80
512.10
Less Accumulated
Total Depreciation
Employee Benefit Payable 3,979.80
2,100.00 3,979.80
2,235.00 3,979.80
2,285.00 3,979.80
2,420.00 3,979.80
2,432.10
Total Depreciated Refrigerator 15,919.20 11,939.40 7,959.60 3,979.80 -
Mixer 3,295.00 3,295.00 3,295.00 3,295.00 3,295.00
Subtotal
Note 7: Income Tax Payable 659.00 659.00 659.00 659.00 659.00
Total Mixer
Income Before Tax 3,295.00
665,160.67 2,636.00
841,812.07 1,977.00
940,815.47 1,318.00
1,059,158.67 659.00
1,178,605.2
Less Accumulated
Multiply Depreciation
by: Tax (30%) 659.00
0.30 659.00
0.30 659.00
0.30 659.00
0.30 659.00
0.30
DepreciationPayable
Total IncomeTax Mixer 2,636.00
199,548.20 1,977.00
252,543.62 1,318.00
282,244.64 659.00
317,747.60 -
353,581.56
Total Depreciation Expense 18,555.20 13,916.40 9,277.60 4,638.80 -
Note 8: Utilities Payable

Monthly Rent 1,250.00 1,254.17 1,258.34 1,262.50 1,267.00
Multiply By No. of Months 12 12 12 12 12
Total Utilities Payable 15,000.00 15,050.04 15,100.08 15,150.00 15,204.00
59
Putolicious Food Business
Statement of Cash Flows
2021 2022 2023 2024 2025

CASH FLOW FROM OPERATING
ACTIVITIES
Net Income 466,228.35 587,861.89 654,184.86 733,484.99 812,516.19
Depreciation Expense 5,638.50 5,638.50 5,638.50 5,638.50 5,638.50
Increase in Income Tax Payable 199,921.65 52,128.66 28,424.13 33,985.77 33,870.51
Increase in Utilities Payable 1,250.00 4.17 8.33 12.50 16.66
Increase in Employee Benefit Payable 19,732.00 302.00 624.00 945.00 1,266.00
Net Cash Provided by Operating
Activities 692,770.50 645,935.22 688,879.82 774,066.76 853,307.86
CASH FLOW FROM INVESTING ACTIVITIES 60
28,192.5
Purchase of Equipment 0 - - - -
28,192.5
Net Cash Provided by Financing Activities 0 - - - -
2021 2022 2023 2024 2025
Sambat, Capital Beg. 40,000.00
195,494.62 313,227.00 425,099.03 535,743.35
Add: Share in Net Income 155,494.62 COLLEGE OF BUSINESS
196,039.13 ADMINISTRATION
218,146.79 244,580.16 270,923.90
806,667.2
CASH FLOW BY FINANCING
ACTIVITIES
61
Capital Beginning 120,000.00 - - - -
Total Less: Withdrawals 226,783.02 391,533.75 531,373.78 669,679.19
- 234,920.00 318,824.00 401,808.00 484,000.00
Less: Withdrawal - 78,306.75 106,274.76 133,935.84 161,333.45
Net Cash Provided by Financing
Sambat, Capital End 195,494.62 313,227.00 425,099.03 535,743.35 645,333.80
Activities 120,000.00 234,920.00 318,824.00 401,808.00 484,000.00
Lavilla, Capital Beg. 40,000.00 195,494.62 313,227.00 425,099.03 535,743.35

Net Increase (Decrease) in Cash 784,578.00 411,015.22 370,055.82 372,258.76 369,307.86
Add: Share in Net Income 155,494.62 196,039.13 218,146.79 244,580.16 270,923.90
Add: Cash Beginning - 784,578.00 1,195,593.22 1,565,649.04 1,937,907.80
Total 195,494.62 391,533.75 531,373.78 669,679.19 806,667.25
Net Cash Ending 784,578.00 1,195,593.22 1,565,649.04 1,937,907.80 2,307,215.66
Less: Withdrawal - 78,306.75 106,274.76 133,935.84 161,333.45
Photolicious Enterprise
Lavilla, Capital End 195,494.62 313,227.00 425,099.03 535,743.35 645,333.80
Statement of Partner’s Equity
For the Years Ended December 31, 2021-
Fuerte, Capital Beg. 40,000.00 195,494.62 313,227.00 425,099.03 535,743.35
2025
Add: Share in Net Income 155,494.62 196,039.13 218,146.79 244,580.16 270,923.90
Total 195,494.62 391,533.75 531,373.78 669,679.19 806,667.25
62
Less: Withdrawals - 78,306.75 106,274.76 133,935.84 161,333.45
Fuerte, Capital End 195,494.62 313,227.00 425,099.03 535,743.35 645,333.80
6.6 Financial Ratio

Capital Beginning 120,000.00 586,483.85 939,680.99 1,275,297.08 1,607,230.06 A. Current Ratio
Net Income 466,483.85 588,117.39 654,440.36 733,740.49 812,771.69
Total 586,483.85 1,174,601.24 1,594,121.35 2,009,037.57 2,420,001.75
Less: Withdrawal - 234,920.25 318,824.27 401,807.51 484,000.35
Capital End 586,483.85 939,680.99 1,275,297.08 1,607,230.06 1,936,001.40
\
Total Partner's Equity 586,483.85 939,680.99 1,275,297.08 1,607,230.06 1,936,001.40
2021 2022 2023 2024 2025
Current Assets 784,578.00 1,195,593.22 1,565,649.04 1,937,907.80 2,307,215.66
Divide by: Current Liabilities 216,648.20 269,828.62 299,629.64 335,317.60 371,213.66
Current Ratio 3.62 4.43 5.23 5.78 6.22
The current ratio, also called the working capital ratio is a financial metric used to measure an enterprise's ability to pay its short-term obligations or those due within 1 year.
Based on the results, the enterprise can pay its short-term obligations, in which the ratio increases per year, considering that the enterprise is assumed to not incur any accounts
payable in the next 5 years.
63
B. Cash Ratio
2021 2022 2023 2024 2025

Cash and Cash Equivalents 784,578.00 1,195,593.22 1,565,649.04 1,937,907.80 2,307,216
Divide by: Current Liabilities 216,648.20 269,828.62 299,629.64 335,317.60 371,213.66
Cash Ratio 3.62 4.43 5.23 5.78 6.22
Based on the results, it is the same with the Quick Ratio since it is assumed that the enterprise's quick assets will only consist of cash and cash equivalents for the
next 5 years. It can be interpreted as for every peso of current liabilities, the enterprise has P3.62 worth of cash available to cover it and the same with the succeeding years. As
a rule of thumb, however, an extremely high cash ratio can indicate that the enterprise has a large amount of idle cash per year.
C. Defensive Interval Ratio
2021 2022 2023 2024 2025

Current Asset 784,578.00 1,195,593.22 1,565,649.04 1,937,907.80 2,307,215.66
Divide by: Operating Expenses 47,168.00 37,553.84 45,582.28 39,480.28 47,899.20
Defensive Interval Ratio 16.63 31.84 34.35 49.09 48.17
The defensive Interval Ratio is a measure used that indicates how many days can the enterprise operate without using any of its non-current assets. Based on the results, the
enterprise is not that heavily dependent on its non-current assets, which indicates that the enterprise will be able to meet its target number of servings per day. It can be
interpreted as the enterprise's ability to not need any additional refinancing from the proponents for 16.63 days.
64
I. Solvency Ratio
A. Debt to Equity Ratio
Total Liabilities 216,648.20 269,828.62 299,629.64 335,317.60 371,213.66

Divide by: Total Equity 586,485.00 939,681.00 1,275,297.00 1,607,229.00 1,936,002
Debt to Equity Ratio 0.37 0.29 0.23 0.21 0.19
Debt-to-Equity Ratio, also known as a gearing ratio, measures the extent of an enterprise's leverage, that is, the proportion of its assets that are financed by equity rather
than the Debt Ratio, which uses debt rather than the latter. Based on the results, the Debt-to-Equity Ratio for the next 5 years is less than 1 or 100%, implying that the
enterprise has enough equity to cover its liabilities and that it uses equity as a source of financing rather than debt, which makes the enterprise leveraged with a low amount
of risk. It can be interpreted as for every peso of equity, the enterprise uses 12% of its debt in its day-to-day operations to finance the former, and the same with the
succeeding years.
II. Profitability Ratio

A. Return on Sales
Net Income 466,483.85 588,117.39 654,440.36 733,740.49 812,771.69

Divide by: Net Sales 1,248,000 1,351,678 1,465,230 1,584,486 1,716,686
Return on Sales 0.37 0.44 0.45 0.46 0.47
Return on Sales is a financial metric used to evaluate an enterprise's overall operational efficiency in generating profits per peso of sales. Based on the results, the
Return on Sales is increasing per year, which is a good indication that the enterprise will be able to grow efficiently and that it can lessen its costs in the next 5 years. It can be
interpreted as the enterprise being able to convert 37% of its sales into profits, and the same with the succeeding years.
B. Gross Profit Margin
Gross Profit 713,573.50 877,721.54 980,497.08 1,087,680.98 1,209,001.61

Divide by: Net Sales 1,248,000 1,351,678 1,465,230 1,584,486 1,716,686
Gross Profit Margin 0.57 0.65 0.67 0.69 0.70
Gross Profit Margin indicates how good an enterprise does in generating revenue, considering the costs involved in producing the products. Based on the results, it is a sign
of the enterprise's profitability. It can be interpreted that for every peso generated in terms of profits by the enterprise, 57% is retained while the remaining percentage is
attributed to the Cost of Goods Sold, and the same with the succeeding years.
C. Return on Asset
Net Income 466,483.85 588,117.39 654,440.36 733,740.49 812,771.69 66

Divide by: Total Asset 803,133.20 1,209,509.62 1,574,926.64 1,942,546.60 2,307,215.66
Return on Asset 0.58 0.49 0.42 0.38 0.35 Return on Assets gives the proponents an idea
in terms of the enterprise's efficiency in generating
sales about the assets purchased. Based on the results, the Return on assets is at a stable rate, which indicates the enterprise's ability to utilize its assets to ensure
profitability in its day-to-day operations. It can be interpreted as for every peso the enterprise invests in its assets, it produces 0.58 in profits and the same with the succeeding
years.
D. Return on Equity
Net Income 466,483.85 588,117.39 654,440.36 733,740.49 812,771.69

Divide by: Total Equity 586,485.00 939,681.00 1,275,297.00 1,607,229.00 1,936,002.00
Return on Equity 0.80 0.63 0.51 0.46 0.42
67
Return on Equity is a measure of financial performance that indicates how efficient the enterprise is in generating sales about the proponents' equity. Based on the
results, the ROE is low since it is a start-up enterprise. It can be interpreted as for every peso the enterprise invests in its equity, it produces 0.80 in profits and the same
with the succeeding years.
III. Financial Leverage
A. Debt to Equity
Total Liabilities 216,648.20 269,828.62 299,629.64 335,317.60 371,213.66

Divide by: Total Equity 586,485.00 939,681.00 1,275,297.00 1,607,229.00 1,936,002.00
Debt to Equity Ratio 0.37 0.29 0.23 0.21 0.19
Debt-to-Equity Ratio, also known as a gearing ratio, measures the extent of an enterprise's leverage, that is, the proportion of its assets that are financed by equity
rather than the Debt Ratio, which uses debt rather than the latter. Based on the results, the Debt-to-Equity Ratio for the next 5 years is less than 1 or 100%, implying that the
enterprise has enough equity to cover its liabilities and that it uses equity as a source of financing rather than debt, which makes the enterprise leveraged with a low amount
of risk. It can be interpreted as for every peso of equity, the enterprise uses 12% of its debt in its day-to-day operations to finance the former, and the same with the
succeeding years.
B. Payback Period
Initial Investment 206,547.36

Divide by: Net Income 466,483.85 588,117.39 654,440.36 733,740.49 812,771.69
Payback Period 0.44
The payback period is the time interval between the time of the initial outlay and the full recovery of the investment. Based on the results, the proponents' initial investment
will be recovered in 0.39 years, or an estimate of 230 days.\
68
IV. Du Pont Analysis
A. Return on Equity
Return on Assets (ROA)

Gross Profit Margin 0.57 0.65 0.67 0.69 0.70
Divide by: Total Assets Turnover 1.55 1.12 0.93 0.82 0.74
Return on Total Assets 0.37 0.58 0.72 0.84 0.95
Du Pont Analysis is a strong measure of how well the enterprise creates value for the proponents and delves further into the enterprise's sources of its Return
on Equity. Based on the results, the enterprise's ROE mainly will come from the assets purchased.
B. Total Asset Turnover
Net Sales 1,248,000 1,351,678 1,465,230 1,584,486 1,716,686

Divided by: Total Assets 803,133.20 1,209,509.62 1,574,926.64 1,942,546.60 2,307,215.66
Total Asset Turnover 1.55 1.12 0.93 0.82 0.74
The asset Turnover Ratio measures the efficiency with which an enterprise uses its assets to produce sales. Based on the results, the ratio lessens per year,
which might indicate that in the next 5 years, there is a need for the enterprise to take action in increasing the ratio per year. It can be interpreted as for every peso
generated in sales, the enterprise gets P1.55 and the same with the succeeding years.
C. Equity Multiplier
Total Assets 803,133.20 1,209,509.62 1,574,926.64 1,942,546.60 2,307,215.66 69

Divided by: Partner's Equity 586,485 939,681 1,275,297.00 1,607,229.00 1,936,002.00
Equity Multiplier 1.37 1.29 1.23 1.21 1.19 Equity Multiplier is a risk indicator that
measures how much of the enterprise's assets are
financed by the proponents' equity rather than debt. Based on the results, the enterprise relies less per year on debt to finance its assets since a high Equity Multiplier indicates
higher reliance on debt financing. It can be interpreted that the enterprise is given the benefit of having less leverage and the same with the succeeding years.
School of Lyceum of Subic Bay
Business Administration and Financial Management
College of Business Administration
70
CHAPTER VII
S O C I O – ECONOMIC STUDY
This chapter discusses the social-economic stand of the enterprise that will
benefit the society, environment, and government. The enterprise aims to improve and help
the economy’s growth as they further proceed. In this part, it will focus on the sectors that
are affected by the enterprise which are the employees, suppliers, government, and
consumers.
This part looks at the Contribution to the Philippine Economy, Employment
Generation and Social Desirability.
7.1 Contribution to the Philippine Economy

Before looking at the contribution to the Philippine Economy, it is best to stretch
the sectors to be affected by the enterprise.
A. Employees
Putolicious is a company that aspires to provide a high-quality product while also

attracting employees that are committed to the company's growth. At the very least, high
school graduates are eligible. Seminars and training will be offered to the personnel in
to improve their productivity. Employees will also receive feedback from the
company to develop.
B. Suppliers
The company should generate a fair number of items at a reasonable price to fulfill
supply and demand. The ingredients will be supplied by the business's suppliers located in San
Narciso, Zambales. Because the components, such as bukayo, coconut milk, lemon, and others,
are readily available, the company will not
have any issues in finding them.
C. Consumers
Putolicious Food Business’ top priority is its customers since they will be the reason for
the company's continued existence. Nowadays, people tend to try new things and consume
new foods. As a result, the company will continue to develop innovative goods,
healthy, and inexpensive to meet the demands and desires of its customers.
D. Government
Businesses and entrepreneurs are the driving forces in today's economy. Businesses
and organizations must obey government regulations and laws to assist and operate
a business successfully. Businesses are required to pay taxes and adhere to the
government's rules and regulations. It will contribute to the improvement and expansion of
the economy by paying taxes and following the regulations.
PAG
E \*
71
7.2 Employment Generation
The creation of jobs is a natural part of the social development process. Humans
bring a wide range of wants into the world that others may satisfy by providing work
possibilities. If it hadn't been for this, the globe wouldn't have been able to maintain a
the population that has tripled in the last century (Definition & Translations, 2020).
The sale of goods or services through the internet is known as e-commerce. For the
section, e-commerce sales accounted for a proportion of the 9.2 billion. With a share of 79.8%,
short-term lodging activity accounted for the most money (Philippine Statistics
Authority, 2018).
The rigorous lockdown procedures implemented in the Philippines to stop the
The spread of COVID-19 had a profound impact on the food service industry. Food
establishments in Manila's capital were permitted to reopen at 30 percent of their sitting
capacity in June 2020 if they met government safety standards, with severe sanitary and
social distancing requirements. These steps were made to help the country's economy,
which was on the verge of collapsing as a result of the country's stringent lockdown. The
the surge in value-conscious consumers ready to explore new restaurants with a wide range of
menu options, including exciting international and local cuisines, which also appeal to
increasingly hectic lives are driving the food service business in the Philippines (Mordor
intelligence, 2020).
7.3 Social Desirability

Consumers' better spending power, a larger middle class, more urbanization, and
increased dining alternatives will continue to push the Philippine foodservice sector's
steady expansion over the next three to five years. Foodservice revenues are expected to
climb 8.6% in 2019, reaching approximately $15 billion, and reach a new high of $16.1
billion in 2020, according to FAS Manila. Food and beverage exports from the United
States in the Philippines will be boosted by strong demand for the hotel, restaurants, and
institutional (HRI) sector (Rubio, 2019).
Through franchising or joint ventures, the number of international brands in the
The Philippine foodservice business continues to rise. Foodservice in the area
Rather than opening their local restaurant, businesses choose to bring in a foreign
brand. Because it takes less work to construct a well-known foreign brand restaurant, this
the technique appears to have a greater chance of success. In the foodservice business, this
the method works because Filipinos, in general, have high esteem for international brands
that they have come to know through their travels overseas or social media
(Bedford, 2019).
72
PAG
E \*
The massive population of 106.5 million people, with a median age of 24.3 years,
is the perfect age to eat out due to the unquenchable desire for food. Every day, 4,875 new
Filipinos are born in the Philippines. The foodservice business is expected to develop in
parallel with the rise in incomes and population. Revenues are expected to reach P637.3
billion and P656.5 billion in 2020 and 2021, respectively. It's no wonder, therefore, that
everyone wants to open a restaurant, whether they're just starting or have been in
business for a while and need a side hustle. The food industry appears to many to be a
a simple way to gain money (Masigan, 2019).
PAG
E \*

FS Putolicious

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

FS Putolicious

Uploaded by

Copyright:

Available Formats

LYCEUM OF SUBIC BAY, INC.

COLLEGE OF BUSINESS ADMINISTRATION

A Feasibility Study Presented to the Department of Business Administration and

In Partial Fulfillment of the Requirements for the

CHAPTER II – INTRODUCTION / BACKGROUND OF THE STUDY

CHAPTER V – MANAGEMENT STUDY

CHAPTER VI – FINANCIAL STUDY

CHAPTER VII – SOCIO-ECONOMIC STUDY

1.1 Name of the Business

1.2 Location of the Project

1.3 Brief Discussion of the Project

Figure 1. Logo of Putolicious

1.4 Project Summary

2.3 Operational Definition of the Terms

n – the sample size

Percentage of Consumption Historical Demand

2017 1438 0.84 439 531,485

Responses 1 piece 2 pieces 3 pieces 4 pieces 5 pieces

Method Standard Deviation

Year Y X X^2 X^4 XY X^2Y

Year Projected Demand Percentage of Willingness Actual Projected Demand

Competitors Number of Puto sold

Year Historical Supply

Year Yi-1 (1+r) Yc

Table 17. Projected Values Using Arithmetic Geometric Curve

Year Projected Supply in a pack of puto

Table 18. Annual Projected Supply

2021 525,378 7,774 517,604

2022 518,025 9,527 508,498

2023 504,085 11,510 492,575

2024 483,557 13,724 469,833

2025 456,442 16,169 440,273

Table 19 Projected Unsatisfied Demand

3.6 Projected Sales

Figure 2: Puto Bukayo

3.7.D. Promotions / Advertising

j4.2 Product / Service

For making the Puto Bukayo:

4.4 Production Schedule

GAS HOSE AND REGULATOR

MEASURING CUP FOR DRY

4.6 Plant Location, Geographical Location of Competing Companies

Figure 4: Vicinity Map

Figure 6: Establishment (Interior View)

4. 7 Plant Size and Layout

Figure 7: Plant Layout

4.8 Raw Materials and Supplies

Table 22. Indirect Materials (1 month)

Table 23. Cleaning Supplies (1 month)

Table 24. Office Supplies (1 month)

Table 25. Production Supplies (1 month)

Hair Net 6 30.00 180.00

Table 26. Other Supplies (1 month)

4.9 Utilities (Electricity, Water, Fuel)

Note 2: Direct Labor

Schedule 2: PAGIBIG Contribution

Schedule 3: Philhealth Contribution

Divided by: No. of days per

Schedule 4: 13th Month Pay

Note 3: Indirect Materials

Note 4: Rent Expense

5.1 Objectives of the Study