MARKET ASPECT

Market Environment

Cozy Connections is a flexible co-working and study hub in Brgy. Pasong Tala, City of
Dasmarinas, Cavite, Zone 4. The location is ideal due to its proximity to numerous
institutions, accessibility to students, and visibility along a highway. The hub prioritizes
professional and academic learning, maximizing productivity and making it easy for potential
clients to find.

Prospective Market

Cozy Connections targets students and professionals aged 15 to 50 who prefer to study
outside their homes, specifically those in the vicinity of the business. The proponents aim to
attract students who prefer to study outside their homes.

Data Analysis

Researchers identified De La Salle University, Emilio Aguinaldo College, Cavite Campus, and
National College of Science and Technology as target markets. Data from the Philippine
Statistics Authority and World Population Review website showed an average growth rate of
0.81% for San Francisco II, 7.99% for Burol Main, and 2.35% for Zone I-B over the last five
years. These data are used to calculate the net population of the target market for 2023-
2027.

Project Target Market

The researcher calculated the projected target market for the next five years by adding the
previous year's population to the recent total population multiplied by the annual growth
rate. The projected total population was then multiplied by the percentage of 15-64-year-
old, economically active, and potential workforce members. The target market consisted of
De La Salle University in Dasmariñas Brgy. San Francisco II, Emilio Aguinaldo College in Cavite
Campus, and National College of Science and Technology and AISAT College in Dasmariñas,
with each representing a different percentage of the population.

Demand Analysis

The table shows the projected annual demand for Cozy Connection, calculated by dividing
the acceptability rate of 90.40% by the number of respondents willing to avail the service, by
the projected target market, and the survey results, resulting in 43.7% within a period of
Trice a Week.

Supply Analysis

The proponent calculated the projected annual supply for the next five years by multiplying
the based capacity of their direct competitors by the total target market and the percentage
of customers already at the study hub, which is 58.2%, and the frequency of service (43.7%).

Marketing Mix

The firm must assess industry marketing programs and create a marketing plan defining the
target market, price, service, and advertising strategy. The marketing mix consists of service,
price, place, and promotions, which are adjusted to meet customer satisfaction with the
business's products.
Service

Cozy Connections offers a comfortable, relaxed, and convenient space for students to focus
on their tasks. It features separate rooms for each activity, including board games for breaks,
study areas with partitions for secluded work, and a separate meeting or conference area for
small to medium groups to collaborate and discuss important matters without disturbing
others.

Price

Pricing is crucial for businesses, and customers consider it before purchasing or availing
services. The business rates for shared desk, solo, and meeting rooms are Php 35.00, Php
40.00, and Php 300, with adjustments based on the country's economic growth.

Place

Cozy Connections is set to open in Brgy. Zone 4, Pasong Tala, City of Dasmarinas Cavite, near
school campuses and the highway. The location's proximity to nearby facilities like Walter
Dasma and Puregold Dasma provides an advantage for the business to attract more
customers.

Promotion

Cozy Connection utilizes social media platforms like Facebook and Instagram to introduce
and promote its business, providing updates about its services and informing the market
about its offerings.
The projected statement of changes in owner's equity for Cozy Connections Study Hub
provides insights into how the partners' capital contributions, withdrawals, and net income
affect the total equity of the company over the years 2024 to 2028.

Capital Contributions and Withdrawals:

At the beginning of each year, the capital balance of each partner is stated.

Partners' capital increases when they share in the net income and decreases when they
make withdrawals from the business for personal use.

Net Income Allocations:

Net income is allocated among the partners based on their agreed-upon profit-sharing
ratios.

Each partner's share of the net income is added to their capital account.

Yearly Changes in Total Partnership Capital:

The total partnership capital is calculated by summing up the capital balances of all partners.

The total partnership capital increases when net income is added and decreases when
partners make withdrawals.

The total partnership capital increases steadily over the years, reflecting the profitable
operations and the reinvestment of earnings into the business.

Partners' drawings decrease the total partnership capital, but the impact is offset by the net
income allocations.

Year-End Capital Balances:

By the end of 2028, each partner's capital balance and the total partnership capital are
provided.

The capital balances represent the partners' ownership interests in the business.

Overall, the statement shows a clear picture of how the partners' capital transactions and
the company's profitability affect the equity of Cozy Connections Study Hub over the five-
year period.

The projected statement of cash flows for Cozy Connections Study Hub provides insights into
how the company expects to generate and use cash over the years 2024 to 2028.
Operating Activities:

The company generates cash primarily from its operating activities, which include earnings
before income taxes and adjustments for non-cash expenses such as depreciation.

There's a positive trend in net cash provided by operating activities, indicating that the
company's core operations are generating increasing amounts of cash over the years. This
suggests improved profitability and operational efficiency.

Investing Activities:

Cozy Connections Study Hub invests in acquiring equipment, furniture, fixtures, and
leasehold improvements.

In 2024, there is significant cash outflow due to investments in equipment, furniture, and
leasehold improvements. However, there are no investments in the subsequent years,
indicating a lack of major capital expenditures.

Financing Activities:

Partners' capital investments contribute positively to cash flow, providing additional capital
for the business.

Partners' drawings result in cash outflows, representing the amounts withdrawn by partners
for personal use.

Overall, there is a net cash inflow from financing activities, particularly in 2024 when there's
a substantial capital investment from partners.

Net Increase/Decrease in Cash:

The net increase/decrease in cash represents the change in the company's cash balance
from the beginning to the end of each year.

There's a consistent increase in cash balances throughout the years, indicating that the
company is effectively managing its cash flows and accumulating cash reserves.

Cash Balance:
The cash balance increases steadily over the years, reflecting the positive cash flow from
operating activities and capital investments from partners.

By the end of 2028, the company's cash balance reaches $12,276,232.93, indicating a
healthy liquidity position.

Overall, the projected statement of cash flows suggests that Cozy Connections Study Hub is
in a favorable financial position, with improving profitability, prudent investment decisions,
and adequate cash reserves to support its operations and future growth initiatives.

FINANCIAL ANALYSIS-RATIO

 The current ratio is a liquidity ratio that measures a company's ability to cover its short-
term liabilities with its short-term assets. It's calculated by dividing the total current
assets by the total current liabilities.

Interpreting the provided data:

In 2024, the current ratio is 85.3, indicating that for every dollar of current liabilities, the
company has $85.3 in current assets. This suggests a relatively low liquidity position.

Over the years, the current ratio increases significantly, reaching 367.7 in 2028. This
indicates a substantial improvement in liquidity, meaning the company has more than
enough current assets to cover its current liabilities.

Generally, a current ratio above 1.0 is considered healthy, as it suggests the company can
cover its short-term obligations. However, excessively high current ratios may indicate that
the company is not effectively utilizing its current assets or may have too few current
liabilities relative to its assets. Therefore, while a high current ratio can imply good liquidity,
it's essential to consider other financial metrics and the company's specific circumstances for
a comprehensive analysis.

 The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a
company's ability to cover its short-term liabilities with its most liquid assets, typically
excluding inventory from current assets. It's calculated by dividing the sum of cash and
cash equivalents, marketable securities, and accounts receivable by the total current
liabilities.

Interpreting the provided data:

In 2024, the quick ratio is 76.2, indicating that for every dollar of current liabilities, the
company has $76.2 in cash and other highly liquid assets. This suggests a relatively low
liquidity position, similar to what was observed with the current ratio.

Similar to the current ratio, the quick ratio increases significantly over the years, reaching
358.7 in 2028. This indicates a substantial improvement in liquidity, meaning the company
has more than enough liquid assets to cover its current liabilities.
 The debt to equity ratio is a leverage ratio that indicates the proportion of a company's
financing that comes from debt compared to its equity. It's calculated by dividing total
liabilities by total equity.

Interpreting the provided data:

In 2024, the debt to equity ratio is 0.010, indicating that for every PESO of equity, the
company has 0.010 in debt. This suggests a relatively low level of debt compared to equity.

Over the years, the debt to equity ratio decreases consistently, reaching 0.003 in 2028. This
implies that the company is relying less on debt financing relative to equity financing as time
progresses.

 The debt ratio, also known as the debt-to-assets ratio, is a financial metric that
measures the proportion of a company's assets financed by debt. It's calculated by
dividing total liabilities by total assets.

Interpreting the provided data:

In 2024, the debt ratio is 0.009, indicating that 0.9% of the company's total assets are
financed by debt. This suggests a relatively low level of debt relative to the total assets.

Over the years, the debt ratio decreases consistently, reaching 0.003 in 2028. This indicates
that the proportion of assets financed by debt is decreasing over time.