VND - Openxmlformats Officedocument - Wordprocessingml.document&rendition 1
VND - Openxmlformats Officedocument - Wordprocessingml.document&rendition 1
VND - Openxmlformats Officedocument - Wordprocessingml.document&rendition 1
A FEASIBILITY STUDY OF
ESTABLISHING PRESS M FROZEN COW MEAT
FOR EXOPORTATION IN POLOMOLOK
__________________________________________________________
Presented by:
Kayl Batayo
Miah Claire Guma
Princess Claire Muñasque
Aizle Mae Salvacion
Kaye Sullano
Presented to:
Mr. Juvir Ian T. Inductivo, LPT
Instructor
September 2022
CHAPTER I
INTRODUCTION
This chapter discusses the background of the study, the rationale of the study,
objectives of the study, scope and delimitation of the study, the research design,
respondents, locale of the study, data gathering procedure, the definition of terms use
Cow meat is the third most widely consumed in the world market. Hence, there is
a major source of frozen meat all over the world. The meat industry is producing live
or frozen meat cow for export to provide the needs of consumption of the consumers.
The frozen meat and meat products are wrapped before they are placed in retail display. The
principal reason for packaging meat during frozen display is to minimize moisture loss.
Moisture loss causes deleterious effects on the texture, flavor, and color of the meat. To
sustain the flavorful taste of cow meat. Thus, frozen meat is common in international or
According to the report of Philippines statistic authority about the cattle situation
report, April -June 2020. The total cattle production from April to June 2020 was
estimated at 46.00 thousand metric tons, live weight. This indicates a decline of 29.5
percent from the previous year’s same quarter output of 65.20 thousand metric tons,
live weight.
Research Conducted by (STATISCA PH) among regions, Northern Mindanao was
the top producer of cattle during the quarter with 8.47 thousand metric tons, live
weight. This was followed by Calabarzon and Ilocos Region with corresponding
productions of 8.17 thousand metric tons, live weight, and 5.40 thousand metric tons,
live weight. These three regions shared 47.9 percent to the country’s total cattle
production.
The cow industry is an important part of the Philippines’ economy, and the
demand for meat products continues to grow. The local producer of live cows is
difficult to find a supplier for exporting their animals. Polomolok is splendidly gifted
with livestock resources, especially in cow. Every year the province has increasing
demand in both local and international markets of livestock because of its high-quality
meat
meat to help the local to distribute by exporting and putting up the name of the
province and its high-quality meat. In addition, it will help to increase the economy by
means of exporting frozen cow meat products from the Philippines to a global market
The proposed project of establishing frozen cow meat engage slaughtered live
cow and processes them into packaging production. This project was conceptualized
due to the massive demand of frozen meat in the international market especially, in
Filipino stores in Asia. Frozen cow meat is presently being utilized as raw
commodities the project will target the quality taste of the international market for the
meat industry. This proposed business helps to assess the profitability and at the
same time to give work to the local individual in municipal of Polomolok and
The objective of the study is to test the feasibility, viability, and profitability of
exporting frozen cow meat in the municipal of Polomolok. Specifically, the study aims
1. Marketing
2. Technical
3. Management
4. Financial
5. Socio-economic
The primary goal of the frozen cow meat project is to determine its viability in
researcher wants to look into the possibilities of frozen cow meat being exported to
The study is limited only to the slaughtered live cow and its packaging process
in Polomolok and does not cover other concerns such as establishing production of
live cow, the respondents will be the people who are exposed and knowledgeable in
This part of the study covers the methodology aspect used in the research which
includes the research design, the respondents, the locale of the study, and the data
gathering procedure.
This study will use a quantitative research design with a survey method to
numerical analysis of data collected via polls, questionnaires, and surveys, as well as
1.5.2 Respondent
The study's respondents were the manager and employees of Silway 8 slaughter, a
The advocate prefers the forename establishment, with personnel drawn from
This research will be carried out in Polomolok, with the proposed location being in
the municipality of Polomolok. The 1km slaughterhouse for frozen meat processing is
well established. The frozen cow meat will be transported easily from the
Silway 8 slaughterhouse, which is owned by the government and produces only for
the local market in the municipality; however, this proposed business will also
The researcher must first obtain permission from the faculty head to conduct the
study's survey. Once approved, the researcher will send an email to the respondents
requesting that they invest valuable time and effort in completing the online survey
questionnaire.
For fact evaluation and interpretation, all of the records gathered could be tabulated,
terminologies are defined based on how they are operationally used in the feasibility
study.
Cow meat. It refers to cattle meat that is widely consumed around the world
Financial. It refers to the aspect of frozen cow meat production that deals with
allocating finite resources, particularly the human resource. It entails a clear and
explicit definition of roles and responsibilities, as well as the flow of authority and
manpower requirements.
Marketing. It refers to the set of operations that helps a business achieve its
goals in the study. Strategic planning, taking into account both the internal and
Slaughtered meat. It refers to the size of meat cut in accordance with the
the environment. It is concerned with the overall economic value that the company
will bring.
Technical. It refers to the study’s basic structure and technical aspects. This
comprises the proposed project’s equipment, materials, and structure plan, as well as
This study is in line with the system orientation of a commodity study with the
municipal of Polomolok when it comes to exporting frozen meat. The following are
some of the ways why the findings of this inquiry could be extremely important and
beneficial:
Local government unit- This study will aid the government to be cognizant of
Potential Investors- For investors to assess the physical and financial resources
CHAPTER II
This chapter discusses the market-related aspects of the proposed business. This
includes the products to be offered, the market research analysis which explains the
target market, the market size and trends, the competition, estimated market share,
and the marketing strategies which include the sales and distribution the pricing
achieve what we aim, imposing the mission and vision will lead to our
destination. Having a game plan for an organization will help the team to be
2.1.1.1 Vision
Our vision is to establish ourselves as polomolok leading supplier of froze
cow meat.
2.1.1.2 Mission
Our mission is to build a slaughter house whose focus only in cow meat, we
2.1.1.3 Goal
the business in the meat industry. The first symbol is the image of the
symbol of a ship that is above the globe means that the proposed business is
is derived from the proprietor’s name. Through this business logo, it is easier
to find and see the business it features three colours, which make the layout
appealing.
Frozen cow meat is presently utilized as raw materials or ingredients for the use of
any beef meal for consumption. Meat and eligible offal is the business product for the
TABLE 1
List of the Products
Cow meat
type of meal.
Eligible Offal
product.
market or target customers, in order to get the advantage over the competitors. It
identifies and analyzes the target market, the market size and trend, the competition,
frozen meat in Filipino store in Asia as well we distribute also the domestic
market. The proposed business will be offering the high-quality meat and very
safe product to sell. most of all, worthy spending meat products. Our main
public market in municipal, and those individual who live in the barangay within
the municipal area. The population of the barangay within the city is shown in
Cotabato with the total population of 152,589 with population growth rate of
market. It is less the poverty rate of 14.29% and the difference is multiplied by
the market size. Lastly, the researcher uses a 10% margin of error,
the errors in the computation of the total market for the proposed business.
The market size which is 105,935 less the margin error of 10% is 95,342 and
year. Below is a table showing the total population for individuals ages 15-64
years old in India. It will calculate the expected number of consumers for the
Table 1
Particulars Total
Table 2
Estimated Market Size (International)
Particulars Total
Years Old
estimated the total population for individuals ages 16-55 years old in thailand.
the poverty rate of 8.8% the business target will be computed. The number is
then multiplied by 80%, which represents the willing responders. The survey
was performed among 100 people, and the percentage of willing responders
taking part.
2.3.3 Competition
This type of business, pressm frozen meat, has a lot of competitors in the
domestic markets. The indirect competitors are mostly found in the production
of the municipal public market. Because there are few competitors to compete
with, the proposed business goal is feasible. The Pressm has been
their effective marketing strategy. In general, there are few competitors in this
industry, with most frozen meat entrepreneurs selling their product at market
2.3.4 Demand
The ability of a business venture to provide the product that is desired by
the target customer group is critical to its success. Our frozen meat product
will meet the needs and wants of customers in order to meet customer
proposed business and willingness to pay a price for a specific product. The
capacity.
(per kilo). The total frequency in a year must be used to calculate the overall
Table 4
Frequency of Annual Market (Domestic)
willing to avail the product, and 9 of them want to purchase the product once a
day. On the other hand there are 11 of them wants to purchase once a week,
29 for twice a week, 15 for once a month, and 17 for twice a month.
To come up with the total frequency in a year, for once a day, 9 respondent
11%. After getting the percentage, it is then multiplied by the frequency of 360
to get the frequency in a year for once a day. The same process for once a
week, twice a week, once a month and twice a month. After getting the
frequency in a year for each period, sum up it all to get the total frequency in a
Table 5
Frequency of Annual Market (International)
Period No. of % Frequency Total
Respondents Frequency in
a Year
Because the frequency in a year for a period of once a month is 12, you can
simply multiply it by 29% to get a total frequency of 3.48. Finally, over a period
frequency of 24, the result is 4.8. In all, the business's yearly frequency is
71.88
the total demand of the proposed business. The total demand will be used in
Particulars Total
Table 7
Total Demand (International)
Particulars Total
2.3.5 Supply
The proposed business will provide a high-quality standard of meats that
supply the needs and wants of the customers specifically in the region of
where the proposed project is located. The proposed business produces fresh
and frozen meats that will be scaled based on the demand of the products in
the market. In the table below shows the competitors market share.
Table
Table 8
Total Supply
the total supply, the average number of kilos of the establishment per day
which is 1,500 kilos was multiplied by the number of working days per year
which is 312 to get the product of 468,000 which is the market share of the
only.
Table 9
Demand and Supply Analysis (Domestic)
Particulars Total
The free market is computed by deducting the total annual supply to the
annual demand. In this case, 5,805,242 total demand of cow meat was
deducted by the total annual supply of 468,000 to get the free market of
5,337,242.
Table 10
Demand and Supply Analysis (International)
Particulars Total
Table 11
Estimated Market Share (Domestic)
Particulars Total
Total 68.79%
Table 12
Estimated Market Share (International)
Particulars Total
Total
Proposed
Business-
47.52%
Free Market-
51.92%
As you can see in the pie chart above the wide space which is the color
green represents the Free Market with the percentage of 51.92%, meaning
there is a wide/big space for possible company business that will engage in
selling fresh and frozen cow’s meat in the area. The red stands for the existing
player in the area where the proposed project is being established due to the
number of existing players in the area it has only 0.56% of the percentage in
the market. Lastly, the blue color represents the market share of the proposed
business which is about 47.52% of the market share, as a newly entrant in the
industry.
the capacity of its workforce. The table below shows the computation to get
The total minutes of operation per day is 480 minutes is divided by the number
The capacity in production is multiply by the number of butcher to get the total
capacity per day. Then, it is multiplied by the number of kilo produced by butcher
and multiplied again by 312 days which is the working days to get the total
practical capacity rate of 80% to get the practical annual capacity of 3,993,600.
2.4 Marketing Strategy
In this section, discusses the PRESSM frozen cow meat pricing strategy and
promotional strategy. The marketing strategy is the effect by the price, promotion
places. Thus, the proposed business used information from the interview conducted
proposed business.
2.4.1.1 Strengths
The PRESSM FROZEN COW MEAT has a quality and high
business make sure to provide fresh meat and safety for consumption
and we only not limit our goal to domestic market but to introduce to
world meat industry, to increase our market profit and give easiest way
2.4.1.2 Weaknesses
PRESSM FROZEN COW MEAT is a new entrant in the meat
2.4.1.3 Opportunities
PRESSM FROZEN COW MEAT may look forward to foreign
supply the domestic and international market but we are open to the
2.4.1.4 Threats
The proposed business considered the threats of BOVINE
disease” this a type of virus would be affecting the growth and it could
large amount in achieving of the business sales and profit is the pricing
In the last DTI price year 2018 is 290 per kilogram. According to
The proposed business will have different kinds of promotion strategy to attract
expenses. The researcher chooses the following advertising medium for the
proposed business:
Facebook Ads- The proposed business will have its own Facebook page to easily
Tarpaulin- The proposed business will utilize 1 piece tarpaulin upon grand
opening with a size of 5 ft. x 10 ft. and a total cost of P1,500.00. This will help
order to generate demand and sales is known as sales promotion. The firm
CHAPTER III
TECHNICAL ASPECT
This chapter discusses the planned business's technical viability, as well as the
building, location, and surrounding map. This chapter also covers the flow of goods,
as well as the availability of resources, equipment, and facilities for use in the
business's actual operations, as well as the waste disposal required for the proposed
business's operation.
This section of the research covers the business's service flow as well as the
technical method of procuring the materials required for its operation. A technical
process is used to evaluate the specifics of how the proposed business intends to
A. Service Materials
Customer Inquiry no Exit
Checking Orders
Billing
Payment
Delivery/Pick-up
The flow of acquiring service materials is depicted in the diagram above. Prior
to the acquisition, the company will assess the materials required for its operations,
such as the number of pieces required and the amount of money set aside for
are inspected for quality and condition. The invoice and purchase order are
B. Importation
The Proposed business will engaged importation because such items or supplies are
not readily available locally at a suitable price, quality, or quantity, the proposed
for manufacturing are obtained from outside the country, primarily from China.
These items are not for sale, hire, or barter in the domestic market, but rather for use
Once the IEIRD has been confirmed by the BOC, the LCB
will then pay the duties and taxes due on the importation
and present the release of the goods in CY-CFS.
Once the approval has been granted by the BOC for the
release of the goods, the LCB will arrange for the carrier
for the imports good be deliver to proposed business
location.
Figure 4. Importation
The steps in the importation process are shown in the figure below.
Service flow shows the process on how the products and services are
converted into a finished product or reach the customers. Service flow would
affect the markets’ patronage of the proposed business products. This will
show how convenient the service process is for the prospect client.
Accommodation
Checking Orders
Billing
Payment
Delivery/Pick-up
The diagram above depicts a company's set of operations that it performs with
all of its employees, combining many divisions to ensure that each customer has a
positive and satisfying experience. To begin, when dealing with customer inquiries,
the company will respond to their questions in a timely manner. Orders will be
checked and, if available, orders will be placed once the business has achieved
complete client satisfaction. After that, the company will move on to billing, followed
by payment settlement. Finally, the frozen cow meat must be delivered or picked up
at the business.
B. Production Plan
Figure 6. PRESS M FROZEN COW MEAT
The frozen cow meat begins as a live cow, which is the proposed business's primary
product, and then goes through the process of being cut into various sizes and forms
according to the business's size standards. The meat may be checked in meat
inspector and submit it to laboratory to determine the quality if ready for the local and
international trade. If this is done, the packaging must be done in a way to prevent
contamination of the meat. The packaging material must be clean and approved for
food. If the meat is frozen the freezing capacity must be sufficient to assure correct
freezing.
C. Exportation
Exporting is one strategy for companies to quickly extend their potential market
and increase revenue. The business produce, frozen cow meat, will be sent to
exporting products
This section delves into the specifics of how and where the frozen meat is made. The
proposed business plan includes a location map, a map of the surrounding area, and
potential operations.
The proposed business will be located in Klinan 6, Polomolok Diversion Road, South
Cotabato. The researcher is convinced that the area is very accessible for the
disposal of our waste, and that when it comes to location, this is the easiest and most
suitable location because the activities require a distance from the home. It will also
be simple to locate the proposed business due to its proximity to the highway.
The vicinity map shows the area and places near the site where the
The proposed business will rent a 1000 Sq. space for a total of php
120,000 per year under a least 25- year lease arrangement that will be
makes the layout more comfortable and safer for the personnel,
The plan was designed to incorporate good utility facilities, ventilation, and
working space.
3.3 Production Needed
This section reviews the facilities designed for the satisfaction of the customer’s
needs. These things are important to our operation such as facilities, equipment,
3.3.1 Facilities
This section discusses the different areas within the business. These areas
business easier. Through this division the personnel can easily determine their
3.3.1.2. Office
This area is four the officials where you can find the area of
office of the quality inspector where you can find the meat
inspectors as well the vetenerian and the hiring officer and office
captive bolt into the brain. And killing box takes place
This area is bleeding situation should be carried out by an incision made with sharp
knife in the jugular furrow at the base. If the neck the knife being directed towards the
entrance of the chest to serve all the major blood vessels arising from the heart.
3.3.1.5 Slaughter area
This area where actual process of slaughtering and dressing the cow, it is ventilated
area
This area is to process of aging or maturing meat by hanging the carcass from a
hook.
3.3.1.7 Dressing
This area provide an opportunity for inspection and evaluation of fitness for
this is special area where meat display to prevent or to reduce the determoration
3.3.1.9 labaratory
this is the place that describe the sampling and laboratory methods that can be used
slaughterhouse.
3.3.1.10 Packaging
This area where meat packed ready to trade. If this done, the packaging must be
done in a way to prevent contamination of the meat we also add the company design
and logos to the chosen cover. the packaging materials must be clean and approved.
if the meat is froze and well-packed then it must delivered on time to the customers
This area is strictly for male the dressing room is exclusive for them to sanitize their
This area is only female employee this purpose also is the privacy and dressing room
This is for all employee in the Pressm business to atleast have place to rest.
COST COST
machine is teknolojil
provides
your bovine
maches up
to180
degrees.
refrigerated or frozen
goods.
implements such k
as butcher knife.
dressing of cow k
carcasses.
large chunks of H
size.
industry is very PH
transfer of cold
Refrigerated van
VENTILATOR
Butcher
cutting table
The following are the equipment regularly used in office by the business and
these will be purchased locally;
ballpe ns
Table 18
Furniture and Fixtures
Cleanliness and orderliness shall be observed all over the place, as required
shall be placed all over the area and the segregation of biodegradable and
For excess waste disposal or waste water treatment facilities and the disposal
of the waste water and solid waste shall comply with the effluent standards
standard.
3.4.1 Ventilation
In Slaughter house, the sanitation is very strict due to implementing rules of
the DA, The proposed business envision to create ventilation to prevent the
cause of bacteria and also the odor. Ventilation ducts should be built into walls
or ceilings or kept clear of bearers to make cleaning easier. Inlets that are
insect-proof should be placed away from dusty areas. All metal fittings that are
cleaning.
3.5 Policies
especially entering the vicinity. That’s why there are some rules that should be
3.5.1.1. Employees are required to turn off all the machines and
responsibilities, flow of authority and manpower level requirement. This contains the
organizational chart and the qualifications of the people Involve in the formation of the
binding agreement between two or more people to run a business together and share
profits. This type of business will be absorbed by the proposed business because it is
confusion, or changes that may arise during the business' tenure. It will also increase
The proposed business will use the hierarchies since the researcher believes it
outlines how certain activities are directed in order to achieve the goals of an
organization. This suggested that employees will have direct supervision who they
BUSINESS OWNER
(HEAD OFFICE)
QUALITY CONTROL
INSPECTOR/VETIRE
NARIAN
HUMAN
ASSISTANT
RESOURCES ACCCONTANT
HIRING SUPERVISION
OFFICER
BUTCHERS MACHINE
PACKERS
INSTALLATOR
DELIVERY
SECURITY GUARD
MAN
As shown above, the company shall be headed by the Business Owner who
has control over a company and has the authority to dictate its operations and
activities. under the business owner is the quality control lead by the meat inspector
and veterinarian who shall inspect and test the quality of meat to be slaughtered and
for consumption. The other departments which the office of accountant who is
responsible for collecting, recording, analysing, and presenting financial data. The
office of assistant supervision who lead the entire flow of production in case the
business owner is not around in the building his/her responsibilities is to check the
operations from raw materials up to finish product, then the office of HR responsible
for keeping all transactions record and hiring people in the business. Other
departments is the personnel who work in the production of frozen meat, we have
machine installator incase of machine interruptions during the flow of production also
they are the one to assist the machines, and follow by butchers responsible for the
right handling of processing the size of meat, packers who will assign in the
include loading the products to Van and the entire transportation of orders, lastly
since we don’t have electric fence we need security to ensure the slaughterhouse is
the selection of its human resources. Hiring the best employees plays a great role to
the success of the business. Thus, their specific functions, duties and responsibilities
should be properly clear. The qualified personnel must know their perspective
function in the organization. Below are the qualifications and descriptions of the
Quality Inspector
old.
Hiring Officer
verbalise ideas.
Assistant Supervision
Set workflow, target and conduct monitoring of outputs and able to educate
Prepare and make Daily Production Reports and establish line operation
Butchers
Machine Operator
Packers
grocery items)
Physically fit, honest and trustworthy, able to work during weekends,
Deliveryman
Securities
Good understanding of legal guidelines for area security and public safety.
Personnel are the one who perform the operation of the business. They must be
knowledgeable of their respective duties and they must follow the standard operating
The table on the below are the duties and responsibilities of every employee to be
hire in PRESSM COW MEAT
Quality Inspector
Perform regular quality assessments on all incoming materials from
Reject all products and materials that fail to meet quality expectations.
control.
performance records.
product excellence.
Accountant
accounting.
Hiring Officer
recruitment process.
On boarding newcomers to the company.
Assistant Supervisor
workshops.
goals.
PACKER
regulations
information
BUTCHER
MACHINE OPERATOR
order.
DELIVERY MAN
delivery.
Cleaning, washing, refueling, and maintaining the company vehicle.
Promptly reporting any road accidents and traffic violations to the company.
SECURITY GUARD
Salary is the monetary compensation that employees receive in exchange for the
services they provide to the company. Employees are contracted to work for a
specific hour per day and are expected to work the number of hours necessary to
The table on the following page showed how much each employee would be paid
HDMF
Monthly SSS PHIC
Position Contributi Net Pay
Salary Contribution Contribution
on
Quality
Inspector 30,500.00 2,592.50 1,067.50 610.00 26,230
Prior to the official start of the business, pre-operational activities will take place.
These activities are critical for the successful launch of a business into the market.
Making a project feasibility study, selecting a location, obtaining permits and licenses,
activities, and finally starting a business are all part of the activities.
whether the business is feasible and to determine the market viability of the
proposed business. This ensures that the money does not go to waste and
that the business prospers in the future. This research will provide preliminary
information about the industry and the market in which the business will
operate. This activity will take two months to complete because it requires a
thorough study and analysis of the various aspects of the business, including
socioeconomic aspects.
4.6.2 Selection of Location
The location is one of the most important factors to consider when starting
Since the business owner has a own a 1km lot to raise the proposed
business for long term use it will give probability success of establishing the
The proposed project will secure the necessary permits and licenses for the
The proposed project will secure the necessary permits and licenses for the
2. Barangay Clearance
4. SEC
6. Pag-ibig
of business permit.
building permits.
be complied.
1. SSS Clearance
3. Pag-ibig Clearance
Following the feasibility study project, the selection and preparation of the
insurance, the proposed project will construct the building and create an
interior based on the design and layout provided in the Lay-out section.
Fixtures
Following the interior design, the proposed project will acquire property,
equipment, machines, supplies, and furniture and fixtures required for its
The hiring requirements may include but not limited to the following:
if any.
Other permits and licenses will be complied provided that the construction
progress is at 90%.
Activities 1 2 3 4 5 6 7 8 9 10 11 12
Negotiation of Building
Construction
licenses’
Acquisition of Supplies
and equipment
personnel
Promotional Activities
The first 2 months will be conducting feasibility study and selecting for location.
Complying all the important documents like permits and licenses will be undertaken in
7 months then acquiring the important supplies and equipment for production and
office uses will the undertaken in 8 months. The hiring and orientation of the selected
promotes the product before the company will start opening will be in 10 months.
Lastly when everything has been done pre-operating activities, the business will be
ready in 12 months.
CHAPTER V
FINANCIAL ASPECT
This chapter shows and discusses the financial forecast for the proposed
business including the financial assumptions, the investment costs, the financial
statements and the financial analysis. Moreover, this chapter also summarizes the
Schedule
Particulars Cost
No.
Property, Plant & Equipment
Machinery & Equipment 13 3,520,964.20
Furniture & Fixture 14 84,410.00
Building 1,500,000.00
Working Capital
Inventory 19 13,833,333.33
Pre-Operating Expenses 20 2,194,570.82
Total 21,133,278.36
furniture and fixtures, building, land and supplies. This will also be used in purchasing
especially during the pre-operating years. Presented on the above is the table of
The initial capital requirement of the business will be provided in the form of
partnership. The partner will provide and invest the amount to sustain the business.
The total investment will be acquired from the personal assets of the
assumed by the researcher that the prospective owner have the capacity to provide
proposed business regarding financial related issues of the entity. These are
based on the data gathered by the researchers from interviews in their
5.4.1.1 Revenue
This portion of the study states the financial assumption with
2. Selling price will increase by 15% annually starting from its second
operation.
80%.
5.4.1.2 Expenses
This portion of the study states the financial assumption with
par.69.
6. Business permits and licenses will be constant every year except for
community tax.
10. Repairs and Maintenance will be 5% of the cost of the asset during
5.4.1.3 Others
This portion of the study states the financial assumptions that
may affect the other sections of the projected financial statements of the
business.
3. Ending inventory will be 10% of the total goods available for sale for
every year.
quarter.
Statement, Cash Flows and Changes in Partners Equity. In line with this, a
summary of these statements are presented in the next page and its
whole. It shows the control asset, owned liability and the owner’s equity
expenses incurred.
inflows and outflows of cash during the operation. It also shows the
liquidity of the firm in a given period of time. Aside from that it also
assesses the ability of the business to generate cash in order to pay its
obligations.
earnings and losses. It also provides on how the capital or fund has
been used.
Sched
Current Assets: No. Year 1 Year 2 Year 3 Year 4 Year 5
Current Assets:
Cash ₱ 38,765,478.84 ₱ 68,683,484.07 ₱ 104,492,677.73 ₱ 147,175,252.49 ₱ 197,762,909.98
Inventory 12 5,533,333.33 6,363,333.33 7,317,833.33 8,415,508.33 9,677,834.58
Total Current Assets 44,298,812.18 75,046,817.41 111,810,511.07 155,590,760.82 207,440,744.56
NonCurrent Assets
Building ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00
Machinery & Equipments 13 3,520,964.20 3,520,964.20 3,520,964.20 3,520,964.20 3,520,964.20
Furniture and Fixtures 14 84,410.00 84,410.00 84,410.00 84,410.00 84,410.00
Accumulated Depreciation 15 329,145.65 658,291.31 987,436.96 1,316,582.61 1,645,728.27
Total NonCurrent Assets 4,776,228.55 4,447,082.89 4,117,937.24 3,788,791.59 3,459,645.93
return methods in analyzing the financial performance, position and cash flows of the
established.
near future.
Current Ratio
Formula: Current ratio = current assets/current liabilities.
current ratio which indicates that it has enough assets to pay its maturing
obligations for five years. It indicates that the said project business is
what proportion of equity and debt the company is using to finance its
assets.
Table on the next page shows the rate of return on total assets
The return on assets resulted to 108% for the first year which
means that the entity is efficient enough in using their assets in earning
profits. The second year of operation resulted to a 81% return. The third
year resulted to a return of 66%; 56% for the fourth year; and 50% for
negatively. This is because of the idle cash that the business has
for variable cost of production such as wages, raw materials and others.
The return on sales for the first year is 29% and an increasing
The table below shows that the proposed business will have a
Return on Investment
Formula: Return on investment = profit/ average equity
The return of investment for the first year is 125%, 89% for the
second year; 72% for the third year; 61% for the fourth year; and 53%
for the fifth year. This implies that the entity generates more profit out of
the investment. The equity increased over the 5 years since the
partners do not have excessive withdrawals. The profit is generated
It shows that the proposed business has high total asset turnover
the thought process of making the investment decision. This section involves
examining and assessing economic and market trends, earnings prospects, earnings
ratios and various other indicators and factors to determine suitable investment
strategies.
Shown below is the table summarizing the payback period of the proposed
business.
that proposed business will recover its investment cost within 1 year and 10
investment positions.
SCHEDULES
Schedule 1
Sales
Sales in Qty.
Particulars Price Sales
(kilo)
Cow's Meat 398,400 250 ₱ 99,600,000
Total 99,600,000
Schedule 2
Cost of Goods Sold
Schedule 3
Salaries Expense
No. of Rate Monthly Annual 13th- Salaries
Position
EE per day Salary Salary month Expense
Quality Inspector 2 1173 30,500 732,000 61,000 793,000
Accountant 1 981 25,500 306,000 25,500 331,500
Hiring Officer 1 981 25,500 306,000 25,500 331,500
Assistant Supervisor 1 981 25,500 306,000 25,500 331,500
Delivery Man 5 519 13,500 810,000 67,500 877,500
Security Guard 2 615 16,000 384,000 32,000 416,000
Machine Operator 5 519 13,500 810,000 67,500 877,500
Butcher 10 519 13,500 1,620,000 135,000 1,755,000
Packer 10 519 13,500 1,620,000 135,000 1,755,000
Total 37 7,468,500
Schedule 4
SSS, Philhealth and HDMF Contribution
EMPLOYER'S SHARE
No. of Monthly
Position
EE Salary SSS PHILHEALTH HDMF
Quality Inspector 2 30,500.00 62,220.00 25,620.00 14,640.00
Accountant 1 25,500.00 26,010.00 10,710.00 6,120.00
Hiring Officer 1 25,500.00 26,010.00 10,710.00 6,120.00
Assistant Supervisor 1 25,500.00 26,010.00 10,710.00 6,120.00
Delivery Man 5 13,500.00 68,850.00 28,350.00 16,200.00
Security Guard 2 16,000.00 32,640.00 13,440.00 7,680.00
Machine Operator 5 13,500.00 68,850.00 28,350.00 16,200.00
Butcher 10 13,500.00 137,700.00 56,700.00 32,400.00
Packer 10 13,500.00 137,700.00 56,700.00 32,400.00
Total 209,100.00 86,100.00 49,200.00
Schedule 5
Supplies Expense
Schedule 6
Depreciation Expense
Useful Depreciation
Particulars Cost Qty Total Cost
Life Expense
Machinery & Equipment
Killing Box 324,000 1 324,000 10 32,400
Walk in freezer 141,659 2 283,318 10 28,332
Pre Skining Line 400,362 1 400,362 10 40,036
Meat Saw 31,915 20 638,309 10 63,831
Meat Crates 355.18 100 35,518 5 7,104
Digital weighing Scale 859.00 2 1,718 5 344
Refrigerated Van 833,000.00 2 1,666,000 25 66,640
Ventilator 10,641.00 1 10,641 15 709
Computer Set 20,350.00 5 101,750 15 6,783
Printer 9,848.00 1 9,848 10 985
Aircon 24,000.00 2 48,000 10 4,800
Modem Telephone 1,500.00 1 1,500 5 300
Total 3,520,964 252,264
Furniture and Fixtures
Office Table 2,180 5 10,900 5 2,180
Office Chair 800 5 4,000 5 800
Waiting Chair 8,202 5 41,010 5 8,202
Office Cabinet 5,700 5 28,500 5 5,700
Total 84,410 16,882
Building 1,500,000 1 1,500,000 25 60,000
TOTAL 3,605,374 329,146
Schedule 7
Repairs & Maintenance
Particulars Cost
Killing Box 324,000
Walk in freezer 283,318
Pre Skining Line 400,362
Meat Saw 638,309
Total 1,645,989
Multiply by 5%
Total 82,299.46
Schedule 8
Advertising Expense
Particulars Cost per Month Annual Cost
Fliers 1,500 18,000
Tarpaulins 6,000 72,000
Total 90,000
Schedule 9
Rent Expense
Particulars Cost
Monthly Rental for Land 50,000
Multiply by No. of Months 12
Annual Rental 600,000
Schedule 10
Business Permits
Particulars Total
Business Location Clearance ₱ 75.00
Sanitary Health Clearance 60.00
Fire Safety Clearance 460.00
CENRO 500.00
SEC Registration 80,100.00
Brgy. Clearance 60.00
Garbage Collection Fee 500.00
Community Tax 496.00
Permit Fee 70,142.84
Certificate of Tax Payment 30.00
Documentary Stamp Tax 30.00
Recording Fee 500.00
Building Permit 17,850.00
DENR Permit 15,575.00
Total ₱ 186,378.84
Schedule 11
Income Tax Expense
Year 1 Year 2 Year 3 Year 4 Year 5
Income Before Tax ₱ 40,692,571.05 ₱ 48,153,620.83 ₱ 56,734,723.09 ₱ 66,603,930.47 ₱ 77,954,505.72
Multiply 30% 30% 30% 30% 30%
Income Tax ₱ 12,207,771.31 ₱ 14,446,086.25 ₱ 17,020,416.93 ₱ 19,981,179.14 ₱ 23,386,351.72
Schedule 12
Inventory
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Beginning Inventory ₱ - ₱ 5,533,333.33 ₱ 548,321.12 ₱ 578,419.54 ₱ 608,121.37
Net Purchases 55,333,333.33 58,100,000.00 72,630,012.21 83,576,663.79 96,170,224.46
Available for Use ₱ 55,333,333.33 ₱ 63,633,333.33 ₱ 73,178,333.33 ₱ 84,155,083.33 ₱ 96,778,345.83
Less: Ending Inventory 5,533,333.33 6,363,333.33 7,317,833.33 8,415,508.33 9,677,834.58
Cost of Goods Sold ₱ 49,800,000.00 ₱ 57,270,000.00 ₱ 65,860,500.00 ₱ 75,739,575.00 ₱ 87,100,511.25
Schedule 13
Machinery & Equipments
Schedule 14
Furniture & Fixtures
Schedule 15
Accumulated Depreciation
Useful Accumulated
Particulars Cost Qty Total Cost
Life Depreciation
Machinery & Equipment
Killing Box 324,000 1 324,000 10 32,400
Walk in freezer 141,659 2 283,318 10 28,332
Pre Skining Line 400,362 1 400,362 10 40,036
Meat Saw 31,915 20 638,309 10 63,831
Meat Crates 355.18 100 35,518 5 7,104
Digital weighing Scale 859.00 2 1,718 5 344
Refrigerated Van 833,000.00 2 1,666,000 25 66,640
Ventilator 10,641.00 1 10,641 15 709
Computer Set 20,350.00 5 101,750 15 6,783
Printer 9,848.00 1 9,848 10 985
Aircon 24,000.00 2 48,000 10 4,800
Modem Telephone 1,500.00 1 1,500 5 300
Total 3,520,964 252,264
Furniture and Fixtures
Office Table 2,180 5 10,900 5 2,180
Office Chair 800 5 4,000 5 800
Waiting Chair 8,202 5 41,010 5 8,202
Office Cabinet 5,700 5 28,500 5 5,700
Total 84,410 16,882
Building 1,500,000 1 1,500,000 25 60,000
TOTAL 3,605,374
329,146
Schedule 16
SSS, Philhealth and HDMF Payable
EMPLOYER'S SHARE EMPLOYEE'S SHARE
No. of Monthly
Position
EE Salary SSS PHILHEALTH HDMF SSS PHILHEALTH HDMF
Schedule 17
Vat Payable
Particular Year 1 Year 2 Yaer 3 Year 4 Year 5
Output Vat 10,671,428.57 12,272,142.86 14,112,964.29 16,229,908.93 18,664,395.27
Less: Creditable Input Tax
Purchases 5,335,714.29 6,136,071.43 7,056,482.14 8,114,954.46 9,332,197.63
OPEX
Supplies Expense 718.39 754.31 792.03 831.63 873.21
Repairs and Maintenance 35,265.61 35,265.61 35,265.61 35,265.61 35,265.61
Capital Assets
Building 300,000.00
Machinery and Equipments 704,192.84
Furniture & Fixture 16,882.00
VAT Payable 4,269,837.65 6,090,792.82 7,010,702.89 8,068,649.52 9,285,340.73
Schedule 18
Income Tax Payable
Year 1 Year 2 Year 3 Year 4 Year 5
Income Before Tax ₱ 40,692,571.05 ₱ 48,153,620.83 ₱ 56,734,723.09 ₱ 66,603,930.47 ₱ 77,954,505.72
Multiply 30% 30% 30% 30% 30%
Income Tax ₱ 12,207,771.31 ₱ 14,446,086.25 ₱ 17,020,416.93 ₱ 19,981,179.14 ₱ 23,386,351.72
Remittance (1st - 3rd Quarter)9,155,828.49
₱ ₱ 10,834,564.69 ₱ 12,765,312.70 ₱ 14,985,884.36 ₱ 17,539,763.79
Income Tax Payable ₱ 3,051,942.83 ₱ 3,611,521.56 ₱ 4,255,104.23 ₱ 4,995,294.79 ₱ 5,846,587.93
Schedule 19
Working Capital- Inventory
Schedule 20
Pre-operating Expenses
SOCIO-ECONOMIC ASPECT
The benefits of the proposed enterprise are discussed in this chapter, as well as how
it would impact society and the economy. It also demonstrates the operation's
business to society was mirrored in the influence it had on the government and the
home.
which help to improve the quality of life and overall standard of living in
communities.
physical manifestations involved with the creation, use, and management of limited
resources.
company not only tries to make a profit, but also to give employment
wake-up call.
Sched
Current Assets: No. Year 1 Year 2 Year 3 Year 4 Year 5
Current Assets:
Cash ₱ 38,765,478.84 ₱ 68,683,484.07 ₱ 104,492,677.73 ₱ 147,175,252.49 ₱ 197,762,909.98
Inventory 12 5,533,333.33 6,363,333.33 7,317,833.33 8,415,508.33 9,677,834.58
Total Current Assets 44,298,812.18 75,046,817.41 111,810,511.07 155,590,760.82 207,440,744.56
NonCurrent Assets
Building ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00
Machinery & Equipments 13 3,520,964.20 3,520,964.20 3,520,964.20 3,520,964.20 3,520,964.20
Furniture and Fixtures 14 84,410.00 84,410.00 84,410.00 84,410.00 84,410.00
Accumulated Depreciation 15 329,145.65 658,291.31 987,436.96 1,316,582.61 1,645,728.27
Total NonCurrent Assets 4,776,228.55 4,447,082.89 4,117,937.24 3,788,791.59 3,459,645.93