POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CHAPTER 5

SOCIO-ECONOMIC ASPECT

This aspect responds to the needs of society, including employees,

customers, and the government, and how the different sectors will benefit from the

result of the business implementation.

Employment and Income

Gas n’ Go will provide job opportunities for unemployed residents of

Mariveles, Bataan. Through the job opening, people can meet their financial needs

and be able to support their families.

Supply of Commodities

Gas n' Go offers convenient, affordable, and high-quality fuel in Mariveles,

Bataan. There are numerous gasoline stations in Mariveles, Bataan, but this

Vending machine will be the first convenient type of gasoline station. The

establishment of the business will help address the supply shortage for the demand

of the business industry while also providing a convenient service and a high-quality

product.

Contribution to the Government

The government will benefit from the establishment of the business through

business and income taxes that will be enforced in Gas n’ Go. Additional to this

payment is the mandatory government contributions of the business in line with the

benefits of its employees.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Contribution to the Economy and Society

Aside from the government payment, Gas n' Go will pay a variety of municipal

taxes and fees to operate its business, all of which will go to the municipality of

Mariveles fund for community programs. Furthermore, the community will not be

concerned about their safety because the business guarantees that every vending

machine is built with safety measures and complies with safety standards.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CHAPTER 6

FINANCIAL ASPECT

This chapter focuses on the financial viability of the proposed business in

society. This section deals with the different approaches and methodologies used in

assessing the financial aspect of a project feasibility study. The financial aspect

translates the implications of the market results and technical feasibility. It will

discuss how to analyze the financial results and assess the financial viability of the

proposed business.

PREPARATION OF PROJECTED FINANCIAL STATEMENTS

In this part, the Projected Financial statements of the company will be

discussed, which are the Statement of Comprehensive Income, Statement of

Changes in Equity, Statement of Cash Flows, Statement of Financial Position, and

the Notes to Financial Statements.

Projected Statement of Comprehensive Income

An income statement is one of a company’s financial statements that shows its

profit and loss over a period of time. The profit or loss is determined by taking all

revenues and subtracting all expenses from both operating and non-operating

activities
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

GAS n' GO
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARS-ENDED DECEMBER 31, 2024-2028
2024 2025 2026 2027 2028
Sales Revenue
Sales (Regular) ₱ 31,419,200 ₱32,861,734 ₱ 34,365,260 ₱ 35,932,232 ₱ 37,565,200
Sales (Premium) 7,665,000 8,023,518 8,397,350 9,350,395 9,775,331
Total Sales ₱ 39,084,200 ₱40,885,252 ₱ 42,762,610 ₱ 45,282,627 ₱ 47,340,531
Less: Cost of Good Sold 35,864,900 37,486,960 39,138,220 41,322,380 43,659,840
Gross Profit ₱ 3,219,300 ₱ 3,398,292 ₱ 3,624,390 ₱ 3,960,247 ₱ 3,680,691
Less: Operating Expense
Rent Expense ₱844,500 ₱675,600 ₱675,600 ₱675,600 ₱675,600
Insurance Expense 43,200 43,200 43,200 43,200 43,200
Payroll Expense 393,400 406,382 419,793 433,646 447,956
SSS Contribution
Expense 13,110 14,250 14,250 14,820 15,390
PhilHealth Contribution
Expense 8,736 9,024 9,322 9,630 9,947
Pag-IBIG Contribution
Expense 1,200 1,200 1,200 1,200 1,200
Depreciation Expense 260,396 260,396 260,396 260,396 260,396
Utilities Expense 102,049 105,131 108,346 111,658 115,069
Repair and Maintenance
Expense 16,600 16,996 17,405 17,828 18,264
Office Supplies Expense 1,862 1,923 1,987 2,052 2,120
Sanitary and Safety
Supplies Expense 1,479 1,528 1,578 1,630 1,684
Other Supplies 4,553 4,703 4,858 5,019 5,184
Business Taxes and
Licenses Expenses 20,820 13,909 15,268 14,843 15,332
Total Expenses ₱ 1,711,905 ₱ 1,554,243 ₱ 1,573,204 ₱ 1,591,521 ₱ 1,611,344
Operating Income
(Loss) Before Income
Taxes 1,507,395 1,844,048 2,051,186 2,368,726 2,069,347
Less: Income Tax (30%) 452,218 553,214 615,356 710,618 620,804
NET INCOME (LOSS) ₱ 1,055,176 ₱ 1,290,834 ₱ 1,435,830 ₱ 1,658,108 ₱ 1,448,543

Table 6.1 Projected Statement of Comprehensive Income

*See Other Supporting Schedules

Projected Statement of Changes in Equity

The statement of changes in equity shows the change in an owner's or

partner's capital throughout an accounting period

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Gas ‘n Go
STATEMENT OF CHANGES IN EQUITY
FOR THE YEARS-ENDED DECEMBER 31, 2024-2028

2024 Abaya, Capital Cota, Capital Gacusan, Capital Gamueda, Capital Ilao, Capital TOTAL
Partner's Beginning Capital ₱580,000 ₱580,000 ₱580,000 ₱580,000 ₱580,000 ₱2,900,000
Add: Share in Profit 124,635 340,635 124,635 340,635 124,635 1,055,176
Less: Withdrawal 93,476 255,476 93,476 255,476 93,476 791,382
Total Ending Balance ₱611,159 ₱665,159 ₱611,159 ₱665,159 ₱611,159 ₱3,163,794

2025 Abaya, Capital Cota, Capital Gacusan, Capital Gamueda, Capital Ilao, Capital TOTAL
Partner's Beginning Capital ₱611,159 ₱665,159 ₱611,159 ₱665,159 ₱611,159 ₱3,163,794
Add: Share in Profit 171,767 387,767 171,767 387,767 171,767 1,290,834
Less: Withdrawal 137,413 310,213 137,413 310,213 137,413 1,032,667
Total Ending Balance ₱645,512 ₱742,712 ₱645,512 ₱742,712 ₱645,512 ₱3,421,961

2026 Abaya, Capital Cota, Capital Gacusan, Capital Gamueda, Capital Ilao, Capital TOTAL
Partner's Beginning Capital ₱645,512 ₱742,712 ₱645,512 ₱742,712 ₱645,512 ₱3,421,961
Add: Share in Profit 200,766 416,766 200,766 416,766 200,766 1,435,830
Less: Withdrawal 160,613 333,413 160,613 333,413 160,613 1,148,664
Total Ending Balance ₱685,665 ₱826,065 ₱685,665 ₱826,065 ₱685,665 ₱3,709,127

2027 Abaya, Capital Cota, Capital Gacusan, Capital Gamueda, Capital Ilao, Capital TOTAL
Partner's Beginning Capital ₱685,665 ₱826,065 ₱685,665 ₱826,065 ₱685,665 ₱3,709,127
Add: Share in Profit 245,222 461,222 245,222 461,222 245,222 1,658,108
Less: Withdrawal 196,177 368,977 196,177 368,977 196,177 1,326,486
Total Ending Balance ₱734,710 ₱918,310 ₱734,710 ₱918,310 ₱734,710 ₱4,040,748

2028 Abaya, Capital Cota, Capital Gacusan, Capital Gamueda, Capital Ilao, Capital TOTAL
Partner's Beginning Capital ₱734,710 ₱918,310 ₱734,710 ₱918,310 ₱734,710 ₱4,040,748
Add: Share in Profit 203,309 419,309 203,309 419,309 203,309 1,448,543
Less: Withdrawal 162,647 335,447 162,647 335,447 162,647 1,158,834
Total Ending Balance ₱775,371 ₱1,002,171 ₱775,371 ₱1,002,171 ₱775,371 ₱4,330,457

Table 6.2 Projected Statement of Changes in Equity

*See Other Supporting Schedules (Table 6.49 Profit Distribution Schedule)

Projected Statement of Financial Position

The financial position is the current balance of the recorded assets, liabilities,

and equity of an organization. This information is recorded in the balance sheet,

which is one of the financial statements.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SAFE ‘n SOUND
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2024-2028
Notes 2024 2025 2026 2027 2028
ASSETS
Current Assets
Cash (4) ₱543,743 ₱845,440 ₱1,177,845 ₱1,558,479 ₱1,983,779
Inventories (5) 2,670 2,987 4,445 3,256 2,651
Prepaid Expense (6) 97,200 97,200 97,200 97,200 97,200
Total Current Assets ₱643,613 ₱945,627 ₱1,279,490 ₱1,658,936 ₱2,083,629
Non-Current Assets
Property, Plant, and
(7) 1,486,701 1,313,518 1,140,334 967,151 793,967
Equipment
Intangible Assets (8) 3,850 3,850 3,850 3,850 3,850
Total Non-Current Assets ₱1,490,551 ₱1,317,368 ₱1,144,184 ₱971,001 ₱797,817
TOTAL ASSETS ₱2,134,165 ₱2,262,995 ₱2,423,674 ₱2,629,936 ₱2,881,446

LIABILITIES and EQUITY

Current Liabilities
Trade and Other Payables (9) ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466
Total Liabilities ₱155,719 ₱192,382 ₱218,067 ₱244,610 ₱271,466

Equity
Beloncio, Capital ₱658,282 ₱687,804 ₱731,602 ₱790,309 ₱863,993
Bracero, Capital 659,482 690,204 735,202 795,109 869,993
Bustria, Capital 660,682 692,604 738,802 799,909 875,993
Total Equity (10) ₱1,978,446 ₱2,070,613 ₱2,205,607 ₱2,385,327 ₱2,609,980
TOTAL LIABILITIES AND
₱2,134,165 ₱2,262,995 ₱2,423,674 ₱2,629,936 ₱2,881,446
EQUITY

Table 6.3 Projected Statement of Financial Position

*See Other Supporting Schedules

Projected Statement of Cash Flows

A cash flow statement is a financial statement that provides aggregate data

regarding all cash inflows a company receives from its ongoing operations and

external investment sources. It also includes all the cash outflows that pay for

business activities and investments during a given period.

Note: Business Taxes and Licenses Payment includes the Amusement Tax Paid

SAFE ‘n SOUND
STATEMENT OF CASH FLOW
FOR THE YEARS-ENDED DECEMBER 31, 2024-2028
Notes 2024 2025 2026 2027 2028
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from (13) ₱4,569,32 ₱5,041,34 ₱5,525,01 ₱6,024,180 ₱6,531,150
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

service collection 0 0 0
Cash payments for:
Purchases of Snacks
(27) 875,500 910,263 950,036 987,525 1,029,841
and Drinks
SSS Contribution (9,16) 122,430 138,180 144,760 149,170 154,910
PhilHealth
(9,16) 82,368 92,327 95,097 97,950 100,888
Contribution
Pag-IBIG Contribution (9,16) 15,400 16,800 16,800 16,800 16,800
Payroll (9,15) 952,901 1,029,224 1,059,529 1,091,618 1,124,170
Advertising (24) 29,400 20,664 20,906 21,175 21,445
Utilities (9,17) 307,649 336,678 342,323 347,997 353,760
Rent (9,22) 630,000 540,000 540,000 540,000 540,000
Insurance (23) 28,800 28,800 28,800 28,800 28,800
Repair and
(19) 100,000 103,000 106,000 109,000 112,000
Maintenance
Office Supplies (18) 3,162 3,257 3,355 3,455 3,559
Sanitary and Safety
(18) 11,144 11,452 11,768 12,095 12,431
Supplies
Other Supplies (18) 46,054 47,436 48,859 50,324 51,834
Business Taxes and
(13,21) 840,333 919,322 1,007,639 1,096,957 1,188,590
Licenses
Income Tax (9,25) 45,717 163,364 266,330 361,153 457,329
Prepaid Expenses (8) 97,200 - - - -
Human Resource (26) 10,000 10,210 10,426 10,649 10,879
Expense
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES ₱371,263 ₱670,364 ₱872,382 ₱1,099,512 ₱1,323,914

CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts ₱- ₱- ₱- ₱- ₱-
Cash payments for
Property, Plant, and
(7) 1,659,885 - - - -
Equipment
Intangible Assets (8) 3,850 - - - -
NET CASH PROVIDED (USED) -
BY INVESTING ACTIVITIES ₱1,663,73 ₱- ₱- ₱- ₱-
5
CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from ₱1,950,00
₱0 ₱0 ₱0 ₱0
partners' investments 0
Cash payments for
(12) 113,784 368,667 539,977 718,877 898,615
partners' drawings
NET CASH PROVIDED (USED) ₱1,836,21
-₱368,667 -₱539,977 -₱718,877 -₱898,615
BY FINANCING ACTIVITIES 6

Net Changes in Cash ₱543,743 ₱301,697 ₱332,404 ₱380,635 ₱425,299

during the year
Add: Beginning Cash - 543,743 845,440 1,177,845 1,558,479
balance
TOTAL (Cash, (4) ₱543,743 ₱845,440 ₱1,177,845 ₱1,558,479 ₱1,983,779
ending)
Table 6.4 Projected Statement of Cash Flows

Gas n’ Go
NOTES TO FINANCIAL STATEMENTS

1. General Information
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

The Gas n’ Go was registered as a General Partnership on October 30,

2023. The partnership’s registered address is at National Road, Brgy. San Isidro,

Mariveles, Bataan. The business will start its operation on January 1, 2024 and will

operate in a calendar year basis. It will be open every day 24/7.

2. Basis of Preparation and Summary of Significant Accounting Policies

Statement of Compliance

The following applicable Philippine Financial Reporting Standards (including

new and amendments to the standards) were adopted by the business:

PFRS 7 Financial Instrument Disclosure

PAS 1 Presentation of Financial Statements
PAS 7 Statement of Cash Flows
PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
PAS 16 Property, Plant and Equipment
PAS 18 Revenue

 PFRS 7, “Financial Instrument Disclosure”, prescribes disclosure that enables

financial statement users to evaluate the significance of financial instruments to

the entity, the nature and extent of their risks, and how the entity manages

those risks

 PAS 1, “Presentation of Financial Statements”, sets out the overall framework

for presenting general-purpose financial statements, including guidelines for

their structure and the minimum content.

 PAS 7, “Statement of Cash Flows”, requires the presentation of information

about the historical changes in the entity’s cash and cash equivalents by means

of a statement of cash flows that classifies cash flows during the period

according to operating, investing, and financing activities.

 PAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”,

prescribes the criteria for selecting and changing accounting policies, together
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

with the accounting treatment and disclosure of changes in accounting policies,

changes in estimates, and errors.

 PAS 16, “Property, Plant and Equipment”, prescribes the principles for the initial

recognition and subsequent accounting for property, plant, and equipment.

 PAS 18, “Revenue”, prescribes the accounting treatment for revenue arising

from the sale of goods and rendering of services.

Basis of Preparation

All items are recognized as Assets, Liabilities, Equity, Income, or Expenses

when the definition and recognition criteria of elements of Financial Statements are

met. Historical cost basis has been used in the preparation of the Financial

Statements of the business. Historical cost is based on the fair value of

consideration in exchange of an assets. In the presentation of the Financial

Statements, the business follows the accrual basis of accounting except for the

presentation of statement of cash flow. Generally, machinery and equipment and

furniture and fixtures of the business are capitalizable except fixtures that are

expected to be replaced within a year or two (2) which will be expensed outright.