Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Submitted to:
Rhea Jane Carpio
October 2014
Acknowledgement
We would like to take this opportunity to thank and acknowledge the persons behind the
accomplishment of this project feasibility study.
First and above all, we praise and thank God for giving us the ability to do this project,
the strength and courage to face the challenges given to us.
To our parents, who did not only support us financially, but also encouraged us to go
beyond our comfort zone just to finish this undertaking.
To our panelists, Ms. Cleofe Arib and Ms. Jocelyn Joson for the recommendations and
suggestions for the betterment our work.
To our instructor, Ms. Rhea Jane Carpio for sharing with us her knowledge, for
entertaining our questions and for giving advice on how to improve our work.
Finally, a big thank you for all the people whose names we failed to mention, who
contributed in one way or another for the success of this project.
2|Page
Table of Contents
Acknowledgement ........................................................................................................................................ 2
Chapter 1 Summary of the Project ................................................................................................................ 5
1.1 Name of the Project ............................................................................................................................ 5
1.2 Location .............................................................................................................................................. 5
1.3 Descriptive Definition of the Project .................................................................................................. 6
1.4 Projects Long Range Objectives ........................................................................................................ 7
1.5 Feasibility Criteria.............................................................................................................................. 8
1.6 Highlights of the Project ..................................................................................................................... 9
1.7 Major assumptions and summary of findings and conclusion .......................................................... 11
Chapter 2 Market Study .............................................................................................................................. 15
2.1 Product Description .......................................................................................................................... 15
2.2 Market Description ........................................................................................................................... 16
2.3 Demand ............................................................................................................................................. 19
2.4 Supply................................................................................................................................................ 21
2.5 Demand-Supply Analysis .................................................................................................................. 25
2.6 Price Study ........................................................................................................................................ 26
2.7 Marketing Program .......................................................................................................................... 28
Chapter 3 Technical Feasibility .................................................................................................................. 32
3.1 The Product....................................................................................................................................... 32
3.2 Manufacturing Process ..................................................................................................................... 34
3.3 Plant size and Production Schedule.................................................................................................. 38
3.4 Machinery and Equipment ................................................................................................................ 41
3.5 Plant Location................................................................................................................................... 57
3.6 Plant Layout ...................................................................................................................................... 58
3.7 Building and Facilities ...................................................................................................................... 60
3.8 Raw Materials and Supplies ............................................................................................................. 60
3.9 Utilities.............................................................................................................................................. 66
3.10 Waste Disposal................................................................................................................................ 75
3.11 Production Cost .............................................................................................................................. 76
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http://www.sunstar.com.ph/davao/business/2014/08/08/davao-4th-most-competitive-cities-358650
6|Page
To be one of the leading suppliers of PET flakes from the Philippines. The
company expects to fully utilize its capacity to be able to cater more
customers in the international market.
7|Page
The machineries employed by the business are functioning properly and of high
quality.
The process for recycling PET bottles can be determined and described.
The initial cost of the project and capital requirements can be determined.
The business must be able to employ workers in the community and help
improve their living.
The company must be able to help the community through payment of taxes to the
government.
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http://rstb.royalsocietypublishing.org/content/364/1526/2115.full
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One kind of plastics used today is the Polyethylene Terephthalate. PET plastics
are used as raw materials for packaging materials such as bottles and other containers for
packing a wide range of food, beverages, and other consumer products. Davao PET
Flakes Processing plant will be the first in Davao City that does the crushing process of
recycling PET plastic materials and to be exported thereafter. The proponents decided to
create this project because this kind of business does not exist yet in Davao City.
Moreover, the proponents, in setting up this business, based their success in the
increasing demand of PET flakes in the global business.
1.6.2 Nature of the Industry
According to the Davao City Business Bureau, there is no existing PET Flakes
Processing Company in the city. Globally, PET bottle flake business is increasing every
year. In fact, one of the highly potential & growing businesses of Bangladesh is PET
bottle flakes. The available raw good in 2009 was approximately 27,900 tons. The usages
of PET bottles are increasing up to 22% every year and the world market has chosen the
opportunity to use this PET for recycling and in many other purposes since the demand is
huge especially in China where there is a need for a large amount of PET flakes for
making fiber which is used in garments. PET Flakes can be used for the production of
new bottles, fibers, foils and other packages. Above 50% of Bangladesh flake is exported
to China.3 Also, Shazil Pakistan (PVT) Ltd. in Pakistan also became successful in their
recycling business which started only by producing PET flakes as a small processing unit
http://www.opexintbd.com/petflakes.html
10 | P a g e
and later became one of the large scale processing units in Pakistan, capable of producing
high quality PET bottle flakes of different colors and specs.4
www.shazilpakistan.com/pbf.php
11 | P a g e
will be marketed outside the Philippines. With this regard, the business will be offering
high quality products with a competitive price which will make it penetrate the industry.
As regards to demand-supply analysis, the demand growth of PET flakes will
continue as long as the polyester fibers demand will further rise in the coming years. The
supply growth is also expected to escalate for other business people will grab the chance
to take a share of the excess demand of PET flakes.
As part of its marketing program, the mode of advertisement to be utilized that
will suit this type of business is online advertisement and through website since many
customers of PET flakes place their orders via internet.
12 | P a g e
processing line is big enough to produce a huge production volume. It can produce 500
kilos of PET flakes per hour.
1.7.3 Financial Feasibility
The project will incur losses in its first year of operations due to the high
investment costs, but will start to earn profit on its second year. It is assumed that the
initial investment will be enough for the business to start its operations. Also, it is
assumed that other sources of financing will be available in case of financial difficulties.
The business will be liquid from the start of its operation. Its current ratio on its five years
of operation is positive. It means that there are enough current assets to cover its current
liabilities thereby indicating that it will be able to pay its short-term payables as they
become due.
http://www.neda.gov.ph/?p=1128
13 | P a g e
14 | P a g e
Retech Recycling Technology AB. System redoma, 2002. PET 700 PET bottle recycling plant.
15 | P a g e
Company Name
Business Type
Location
Main Products:
Size (based on):
Annual Turnover
Number of
Employees
Main Markets
Product Quality
Selling Price:
Min Order (tons)
Annual Purchase
Volume
Unit Price
2
3
4
Zhejiang Jiali
Shanghai clean
Fujian Minrui
Renewable Resources D.K.Internation technology co.,
Chemical Fibre Co.,Ltd Co., Ltd
al Company
LTD.
Manufacturing
Manufacturing
Manufacturing Manufacturer
Shanghai port,
Fujian, China
CNF, Shanghai
China
Shanghai, China
PET Fibre
PET Fibre
Fibre
24,000 Tons
http://importer.ec21.com/buy
Reference
16 | P a g e
_lead/Buy_PET_Flake-23639026.html
Clear Colored
Clear colored
15,600 Tons
6,000-12,000
Tons
http://importer.ec2
1.com/buy_lead/B
http://www.recyclechina.co uy_PET_Flakes-m/leads/details80384.htm
23490861.html
30,000 Tons
$800/MT
http://www.petflakespsf.com/?gclid=CMv
KpYryrcACFZcDvA
oda3kANg
Reference
17 | P a g e
8
Optuniversal Llc
Manufacturer
Russia
6,000 Tons
http://europe.bloombiz.
http://www.2wte
http://importer.ec21.com/com/default.cgi/action/
xtile.com/Import.http://www.fuzing.com/vli/001buy_lead/Buy_PET_Flakviewcompanies/compan
htm
458c42250/PET-Flakes
es--23656299.html
yid/992656/
10
Company Name
N/A
N/A
Business Type
Manufacturer
Location
Main Products:
Size (based on):
Annual Turnover
Number of Employees
Main Markets
Hongkong
Manufacturer
Flowery Branch
Georgia, USA
Product Quality
Selling Price:
Min Order (tons)
Reference
Rushabh
International
12
Manufacturer
Zen Fasteners
Trading
Company
India
Delhi, India
5-50
11
US $991 / MT
432 Tons
US $1212 / Metric
Ton
600 Tons
http://globalbuyersonl
ine.com/tradeleads/det
http://www.recycle.net http://www.recycle.net/c ails.asp?xpyr=702341
/cgigi&obj=SGDFGDFUJJ
bin/exview.cgi?item=L bin/exview.cgi?item=L 453BJHJ34JVBJBJ23
W1100258&w=01
W1101102&w=01
4BJ5H
$600-700/ Ton
http://www.recyclei
nme.com/rimzenfast19/buyoffer23819.aspx
From the tables above, the relative average annual purchase volume in China is
32,600 tons; in Korea, 3,600 tons; in Russia, 6,000 tons; in Hong Kong 2,400 tons; in
United States, 432 tons; and in India, 600 tons. Furthermore, the average price per ton in
China is $755; in Hong Kong, $991; in United States, $1,212; and in India $700. To
convert the dollar amounts to Philippine Peso, the proponents used the average exchange
rate found in Bangko Sentral ng Pilipinas in the past five years, which is 44.147 Php.
18 | P a g e
Thus, the average price per ton in China is 33,330.99 Php; in Hong Kong, 43,749.68 Php;
in United States, 53,506.16; and in India 30,902.90 Php.
2.3 Demand
The target market of DPET is polyester fiber manufacturing companies. In the
first five years, companies in China are the companys target market, and in succeeding
years, the company will expand to other countries like Bangladesh, India, and Pakistan.
Thus in forecasting the subsequent five years global demands, DPET will use the
projected global average growth on demand for polyester fibers for the period covering
2011-2025 which is 5% per year.7 Furthermore, global statistics shows that in 2009, 3.4
million tons of flakes were used to produce fiber, 500,000 tons to produce bottles,
500,000 tons for APET sheet, 200,000 tons for strapping tape, and 100,000 tons for
miscellaneous applications.8 Thus, in 2009, a total of 4.7 million tons of PET were
collected. Further, in 2011, approximately 7.5 million tons of PET was collected, which
gave 5.9 million tons of PET flakes. So as basis for projection, the proponents used the
ratio of PET used to produce fiber with the total PET in 2009, and multiplied it with 2011
PET flakes. This gives us the formula, (3.4/4.7)*5.9, which results to 4.268085 (in
million tons). This then is the demand of PET flakes in 2011. The table in the next page
shows the estimated demand in years 2011 to 2014.
7
8
http://www.apic2014.com/download/SF%204%20-APIC2014_Global%20Fibers%20Overview.pdf
PCI, www.pcipetpackaging.co.uk
19 | P a g e
metric tons)
2011
4.26809
2012
4.48149
2013
4.70556
2014
4.94084
Following this approach, assuming that the growth rate is still 5% for the next five
(5) years, the supply is 5.18788, 5.44728, 5.71964, 6.00562, 6.30590 (in million tons), in
years 2015, 2016, 2017, 2018, 2019, respectively. Table 2.3.2 and graph 2.3.1 is shown to
illustrate clearly the projected supply
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5.18788
2016
5.44728
2017
5.71964
2018
6.00562
2019
6.30590
in Million Tons
5.18788
5.44728
5.71964
6.00562
6.3059
Year
2.4 Supply
According to the research conducted by the proponents, through searches in the
World Wide Web, major producers of PET flakes are located mostly in China, India,
Bangladesh and Pakistan. Furthermore, though plastic industry in general is prominent in
the Philippines, PET flakes processing in particular is not common in the country.
Nevertheless, research shows that there are, more or less, twenty (20) companies which
process PET flakes in the Philippines (Alibaba.com). A list of companies that produce
PET flakes in the Philippines is shown in Appendix A.5
In Appendix A, it also shows the list of PET producers in China, India,
Bangladesh and Pakistan with their description in terms of business location, main
products, company size (based on annual revenue and number of employees), main
markets, PET flake specification or quality, selling price, and supply ability. Although the
table does not comprise the worldwide supply of PET flakes, it is useful in determining
21 | P a g e
the relative volume of PET flakes a company can supply, which will then be helpful in
estimating the capacity the proposed business should have if it is to compete with
national and international markets. Further, some parts of the table may be unfilled due to
insufficient source of data.
Based on the tables in Appendix A, most target markets are in Europe, Africa,
Middle East, Southeast Asia, and Eastern Asia. Also, the selling price depends on the
minimum order quantity; the larger the bulk of order, the lower the unit price. Also, the
average selling price varies in the different countries. In China, the average selling price
is US $ 1,117 or 49,312 in Philippine Peso. In Bangladesh the selling price per ton is US
$ 881.25 or 38,904.54 Php, US $ 813.75 or 35,925 Php in Pakistan,US $ 900 or
39,732.30 Php in India, and US $ 1,130 or 49,886.11 Php in the Philippines.
http://link.springer.com/chapter/10.3920/978-90-8686-739-4_31
22 | P a g e
sheet, 200,000 tons for strapping tape, and 100,000 tons for miscellaneous applications.10
Thus, in 2009, a total of 4.7 million tons of PET were collected. Further, in 2011,
approximately 7.5 million tons of PET was collected, which gave 5.9 million tons of PET
flakes. So as basis for projection, the proponents used the ratio of PET used to produce
fiber with the total PET in 2009, and multiplied it with 2011 PET flakes. This gives us
the formula, (3.4/4.7) x 5.9, which results to 4.268085 (in million tons). This then is the
supply of pet flakes used to produce fiber in 2011. The succeeding years supply is
derived from the 3.6% growth rate per year of the commercial beverages. The proponents
assumed that the rate, 3.6% is constant in the succeeding years. The table below shows
the supply in years 2011 to 2014.
Table 2.4.2 Supply
Year
2011
4.26809
2012
4.42174
2013
4.58092
2014
4.74583
Following this approach, assuming that the growth rate is still 3.6% for the next
five (5) years, the supply is 4.916687, 5.093688, 5.277061, 5.467035, 5.663848 (in
million tons), in years 2015, 2016, 2017, 2018, 2019, respectively. Table 2.4.3 and graph
2.4.1 is shown to illustrate clearly the projected supply.
10
PCI, www.pcipetpackaging.co.uk
23 | P a g e
4.91668
2016
5.09368
2017
5.27706
2018
5.46703
2019
5.66384
In Million Tons
5.6
5.4
5.2
5
4.8
4.6
4.4
Supply
4.916687
5.093687732
5.27706049
5.467034668
5.663847916
Year
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Year
2015
2016
2017
2018
2019
Demand
(in Million
Metric tons)
5.18788
5.44728
5.71964
6.00562
6.3059
Supply (in
Million Metric
Tons)
4.916687
5.093688
5.27706
5.467035
5.663848
in Million Tons
6
5
4
3
2
1
0
Demand
5.18788
5.44728
5.71964
6.00562
6.3059
Supply
4.916687
5.093687732
5.27706049
5.467034668
5.663847916
Year
25 | P a g e
Furthermore, the proponents matched the unit prices in the countries that are
present in both supply and demand data. The table below shows the average unit price
both for selling price and purchase price in the three countries.
Table 2.5.2 Average Unit Price and Volume for Demand and Supply
Unit Price (in Php)
Demand
Supply
Supply
China
33, 330.99
49, 312.00
755.00
1, 117.00
India
30, 902.90
39, 732.30
700.00
900.00
United States
53, 506.16
49, 886.11
1, 212.00
1, 130.00
11
Retech Recycling Technology AB. System redoma, 2002. PET 700 PET bottle recycling plant.
26 | P a g e
bottles classifying into colors and quality. Since there are different colors of pet bottles
available in the supplier, there is a need to separate them because there are some
customers who buy pet flakes in one color only, or more, separately. Lastly, the
processing of these bottles into flakes this is the final process of the business. Some
parts of the bottles are already considered wastes and not included in weighing for
packaging. This factor leads to the lighter mass of the PET flakes produced thus
necessitating additional bottles to accomplish the supply for the customers.
Below are the prices of different substitutes in producing synthetic fibers.
Table 2.6.1 Substitutes
Polyamide Resin
Anhui Sincerely Titanium Industry Co., Ltd.
(China)
Polyvinyl chloride
Henan Fengbai Commercial Co., Ltd.
(China)
Phenol-formaldehyde
Henan Xinxiang No. 7 Chemical Co., Ltd.
(China)
64,013.15 81,671.95Php/Ton
88,294.00 101,538.10Php/Ton
27 | P a g e
The data presented in the previous page shows that PET flakes as raw materials
for synthetic fibers are cheaper than Polyamide, Polyvinyl chloride, and Phenolformaldehyde. Also, the supply of PET flakes is greater than its substitute because of the
availability of post-consumer PET bottles. Polyester fibers have several advantages over
alternatives there is ample availability, an advantaged cost position and favorable
performance characteristics relative to competing materials. Combined, these advantages
have positioned polyester fiber to achieve the largest gains in the natural and synthetic
fiber market.12
2.7 Marketing Program
One important factor that should be considered in engaging in the business world
is the companys marketing strategy. A market strategy is a technique which is aimed at
gaining competitive advantage. In order to be recognized and earn a place in the market
the company should advertise and promote its products.
Most of the companies engaged in selling PET flakes market their products via
the internet. They sell their products through online web markets like Alibaba and
Recyclers World. They also create their own website and advertise their products online.
DPET will market its products by creating contractual relations with its
customers. The company will contact potential buyers via their website or search for
prospective buyers through online web markets. Because the demand for PET flakes is
prevalent in the web markets, it would be more efficient to get potential buyers from the
web.
12
http://press.ihs.com/press-release/chemicals/rising-fiber-and-packaging-demand-developing-countries-keepsglobal-polyeste
28 | P a g e
29 | P a g e
crushed and processed PET bottles. Finally, the quality assurance officer together with
the shipping officer will conduct the final checking of quality and quantity before the
products are shipped to customers.
Additional Guidelines in Quality Assurance:
Documentation
Documentation of traces of failure starting from the receiving of raw
materials up to the packing should be maintained for future production references.
B. Price
Most of the customers in the online web market provide the price that they are
willing to pay for the PET flakes. To make sure that the price is reasonable and
advantageous to both parties, the company will send a company representative to
personally communicate and contract with the customer. For the company to gain
competitive advantage, its preliminary price for the product will be 45 Php per kilo which
is lower than the average price of 49 Php. The average price of 49 Php is derived from
the prices offered in the global market (see Note 8: Sales).
C. Place
There two government seaports in Davao City namely Sasa International Wharf
and Santa Ana Domestic Wharf. Since the project involves exportation of goods, the
company will ship its finished products via Sasa International Wharf. This wharf operates
mainly for container and shipping, which makes it a suitable means of transporting the
finished products of the business to its customers.
30 | P a g e
D. Promotion
As means of promoting its product, the company finds it more suiting and
efficient to contact its prospective customers by getting their contact number or email
address from the online web markets. This will be the preliminary part of the promotion
where the company will introduce and offer its products to the customer. If the
customers response is positive the company will then send its representative to present
the sample of the product. If the client is satisfied with the products quality, the contract
and agreement will then be finalized. This will ensure that both sides are given the
opportunity to be heard, thus, will make the agreement clear and fair to both parties. The
policies which will govern the sale of the product will depend on the agreement of the
parties in the contract. The company will also advertise its products online by creating its
own website. A marketing analyst will be hired to handle and maintain the promotional
activities of the company.
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3.1.2 Uses
PET flakes have a high commercial value and is considered a good export
commodity. DPET finished goods can be used as raw material for certain technical
purposes and for manufacturing a wide range of products.14 Examples of these products
are listed in the next page.
13
Retech Recycling Technology AB. System redoma, 2002. PET 700 PET bottle recycling plant.
32 | P a g e
Fibers
Carpeting
Filler (stuffing) for cushions, pillows, stuffed toys, etc.
Insulation in sleeping bags, clothing, etc.
Textiles for clothing, upholstery, fabrics, etc.
3.1.3 Quality
In processing PET flakes, quality is the first thing to be given emphasis. This is
because processing PET flakes is the first step in recycling plastics which thereby serves
as raw material for further processing into end products such as those mentioned in the
preceding paragraph. The business, then, would be able to assure the type of quality,
which is fiber-grade flakes, by hiring a qualified professional, such as a chemist to verify
and monitor the specified standard. The table in the next page shows the characteristics of
PET flakes that the business must follow.
33 | P a g e
Measurement
Flakes size
6 12 millimeters
Bulk Density
Acetaldehyde
Melting Point
15
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After the raw materials are transported to processing plant, they are processed into
PET flakes. The processing of PET flakes has five main stages: Sorting, Shredding,
Washing, Rinsing, and Drying. However, prior to doing the main processes, an
organized collecting system, efficient pre-handling and pre-sorting must be observed.
Table 3.2.1 shows the different phases in processing PET flakes and Diagram 3.2.1further
illustrates the process. For machineries and equipment to be used in each phase, see Table
3.4.1 Machinery and Equipment.
Table 3.2.1 PET Flakes Process16
DESCRIPTION
PET plastics must not be unnecessarily mixed with
Collecting, Pre-
sorting
Manual Sorting on
Site
Shredding
16
http://nett21.gec.jp/Ecotowns/data/et_a-03.html
http://composite.about.com/od/Plastics/a/Recycling-Plastics.htm
35 | P a g e
Rinsing
next step.
36 | P a g e
37 | P a g e
38 | P a g e
Monday
Tuesday
Wednesday
Thursday
Friday
8 hours
8 hours
8:00 am - 9:00 am
9:01 am - 10:00 am
10:01 am- 11:00 am
11:01 am - 11:45 am
Break
11:46 nn - 12:45 pm
12:46 pm - 1:45 pm
1:46 pm - 2:00 pm
Break
2:01 pm - 3:00 pm
3:01 pm - 4:00 pm
4:01 pm - 5:00 pm
Total Hours Worked
8 hours
8 hours
8 hours
The table below shows the schedule of second batch composed of all employees
excluding those having the schedule in Table 3.1a.
Table 3.3.1b Daily time schedule for employees
Time
Monday
Tuesday
Wednesday
Thursday
Friday
8 hours
8 hours
8:00 am - 9:00 am
9:01 am - 10:00 am
10:01 am- 11:00 am
11:01 am - 12:00 nn
12:01 nn - 12:45 pm
Break
12:46 pm - 1:45 pm
1:46 pm - 2:45 pm
2:46 pm - 3:00 pm
Break
3:01 pm - 4:00 pm
4:01 pm - 5:00 pm
Total Hours Worked
39 | P a g e
8 hours
8 hours
8 hours
The table below shows the expected daily production volume which varies every
day and every two weeks.
Table 3.3.2a Daily production schedule
Week
Monday
Tuesday
Wednesday
Thursday
Friday
1st Week
1,600
Kilos
1,600
Kilos
1,600
Kilos
1,600
Kilos
1,600
kilos
1,600
kilos
1,600
kilos
1,600
kilos
1,600
kilos
1,600
kilos
1,600
kilos
1,600
kilos
3,200
kilos
1,600
kilos
3,200
kilos
1,600
Kilos
3,200
kilos
1,600
kilos
3,200
kilos
1,600
kilos
2nd Week
3rd Week
4th Week
The table below shows the expected monthly production of 38,400 kilos and a
total of 422,400 kilos for 2016. There is no output in the month of January since the
operation will start on February.
Table 3.3.2b Monthly production schedule
Month
January
February
March
April
May
June
July
August
September
October
November
December
TOTAL
40 | P a g e
Total
Production
38,400 kilos
38,400 kilos
38,400 kilos
38,400 kilos
38,400 kilos
38,400 kilos
38,400 kilos
38,400 kilos
38,400 kilos
38,400 kilos
38,400 kilos
422,400 kilos
The table below shows the expected yearly production with a discretionary
increase of 5% yearly.
Table 3.3.2c Yearly production schedule
Year
2016
2017
2018
2019
2020
Total
Production
422,400 kilos
483,840 kilos
508,032 kilos
533,434 kilos
560,105 kilos
41 | P a g e
The following table shows the machineries and equipments for processing PET
flakes with their specific functions. They are categorized in different stages: General,
Sorting, Shredding, Washing, Rinsing, and Drying.
Specification
General Equipment
Belt Conveyor
Width:
800mm
Length:
4,000mm
Motor power:
2.2Kw
Model of reducer:
80# 1:40
Materials of belt:
pvc+pa 3mm
thickness
Speed:
24 rpm
Quantity:
2 units
Diameter:
400mm
Length:
4,000mm/5,000mm
24 rpm
Materials of mesh:
stainless steel
3mm
Discharged port:
Thickness of screw:
5mm
other
Thickness of body:
5mm
Quantity:
3 units
17
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Control Cabinet
Thermo relayGHT6385
Press-buttonShuangke brand
Brand and size
This control cabinet equips the overload device. It
of electric cabinet800mm x
400mm x
1,700mm
(Zenfon brand)
Quantity:
1 unit
Sorting Conveyor
Length:
7,000mm
Width:
800mm
Motor of power:
2.2Kw
Model of reducer:
wpa80
Speed:
24 rpm
Materials of belt:
pvc+pa 3mm
43 | P a g e
thickness
Quantity:
1 unit
600B
device:
2.2Kw-4
600mm
Amount of blades:
10pcs (4 fixed
295mm x
85mm x 18mm
Speed of rotation:
600 rpm
Thickness of body:
20mm each
side
9crsi
Thickness of mesh:
12mm
1 unit
Length:
4,500mm
Diameter:
500mm
Amount of blades:
118pcs each
blades consists
of 118 small
alloy knives
44 | P a g e
1,000mm
Height of feeding
mouths:
1,600mm
Quantity:
1 unit
Diameter:
Height:
1,600mm
1,500mm
Motor power:
5.5Kw
Reducer:
BLD3-59-5.5
Speed of rotation:
24rpm
Overall dimension:
1,680mm x
1,680mm x 2,500mm
Quantity:
1 unit
Diameter:
400mm
Length:
5,000mm
Motor power:
4Kw-4
Reducer:
WPA100#
Floating Washer
1:60
Speed of rotation:
24 rpm
Maximum width:
1,200mm
Maximum height:
1,200mm
Thickness of body:
5mm and
3mm
5mm
45 | P a g e
3 units
Length:
3,500mm
Diameter:
400mm
Motor power:
5.5Kw-4
Speed of rotation:
442rpm
Friction Washer
3mm
The sieve
mesh made of
stainless steel
Quantity:
1 unit
Horizontal
Diameter:
500mm
Length:
2700mm
Motor power:
15Kw-4
46 | P a g e
Quantity:
1 unit
Diameter of pipe:
160mm
4,000mm
Motor power:
4Kw
Power of heating:
6Kw
Capacity of silo:
500-800kg
47 | P a g e
Quantity:
1 unit
ISUZU ELF
TRUCK
JINMAI TCS-3000
FLOOR SCALE
48 | P a g e
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
160,000.00
per unit
1 unit
160,000.00
Used to transfer
finished goods from
one location to
another (e.g from
storage room to truck)
up to 11.8 mph, 126
feet per minute lift
speed, 2500 kilograms
capacity,
254cmx114cmx254cm
998,000.00
per unit
1 unit
998,000.00
66, 198.43
per unit
1 unit
66,198.43
441.47 per
unit
1 unit
441.47
EQUIPMENT
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
Used as platform of
export-ready finished
goods
2000 kilograms
dynamic capacity,
1.2m x 1.2m x 0.155m
1,545.15
per unit
50 units
77,257.50
RXP-1212WCA+8
PALLET
Table 3.4.3 Factory Furniture and Fixtures
FURNITURE AND
FIXTURES
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
5,000.00 per
unit
2 unit
10,000.00
233.00 per
unit
25 units
5,825.00
WOODEN TABLE
URATEX #101
CLASSIC CHAIR
49 | P a g e
HP PAVILION
P6107C DESKTOP
PC
COMPUTER SET
HP DESKJET INK
CARTRIDGE 2510
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
22,990.00
per set
5 sets
114,950.00
1 unit
4,000.00
1 unit
27,148.00
27,148.00
per unit
OFFICE
EQUIPMENT
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
4,150.00 per
piece
1 pc
4,150.00
4,798.00 per
unit
2 units
9,596.00
1,545.15 per
unit
5 units
7,725.75
TOTAL
WHITE BOARD
DOWELL WDS58AWATER
DISPENSER
OFFICE CHAIR
51 | P a g e
DESCRIPTION
PRICE/
UNIT
QUANTITY
3,640.00 per
unit
7 units
25,480.00
FURNITURE AND
FIXTURES
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
882.94 per
unit
16 units
14,127.04
7,200.00 per
unit
1 unit
7,200.00
OFFICE DESK
FILE CABINET
Table 3.4.6 Operations Supplies
OPERATIONS
SUPPLY
EGP-SUPER SACK
PAMO NYLON
TWINE
52 | P a g e
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
22.07 per
piece
1,000pcs
22,070.00
47.00 per
roll
2 rolls
94.00
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
47.00 per
piece
10 pcs
470.00
29.70 per
piece
10 pcs
297.00
54.00 per
piece
2 pcs
108.00
125.00 per
piece
2 pcs
250.00
PILOT V7
HITECPOINT SIGN
PEN
PILOT BLACK
WYTEBOARD
MARKER
PILOT BLACK
WYTEBOARD INK
REFILL
53 | P a g e
OFFICE SUPPLY
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
Short-1.85
per piece
Short-50pcs
Short-92.50
Long-50pcs
Long100.00
Long-2.00
per piece
Used to print
documents such as
financial statements,
letters, etc.
Short- 70gsm,
8.5x11
Long-70gsm,
8.5x13
Short149.00 per
ream
Short-3.75
per piece
Short-1 ream
Short149.00
Long-1 ream
Long175.00
Short-50pcs
Short187.50
Long-50pcs
Long212.50
Long175.00 per
ream
Long-4.25
per piece
SHORT AND LONG
FOLDERS
Used to put holes on
papers and folders for
filing
145.00 per
piece
1 pc
145.00
32.00 per
box
1 box
32.00
HBW HEAVY
DUTY PUNCHER
HBW FASTENER- 1
BOX(50 PIECES)
54 | P a g e
OFFICE SUPPLY
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
287.50 per
piece
2 pcs
575.00
150.00 per
pack
1 pack
150.00
Used as container of
mineral water in the
water dispenser
150.00 per
unit
2 units
300.00
60.00 per
set
1 set
60.00
CASIO MS 80TV
CALCULATOR
TISSUE PAPERS-1
PACK
5-GALLON
DISTILLED
WATER
CONTAINER
OFFICE SUPPLY
DESCRIPTION
PRICE/
UNIT
QUANTITY
TOTAL
80.00 per
set
1 set
80.00
30.00 per
piece
2 pcs
60.00
15.00 per
piece
2 pcs
30.00
Used as documents
when having sales
transactions
1,750.00 per
set
1 Set
1,750.00
Used by the
bookkeeper to record
the day-to-day
transactions of the
business
400.00 per
set
1 Set
400.00
CUP SET
(6PCS)
PAIL
DIPPER
RECEIPT AND
SALES INVOICE
SLIPS
COLUMNAR
BOOKS
56 | P a g e
57 | P a g e
58 | P a g e
59 | P a g e
PET flakes. This will then affect the quantity of other materials or supplies needed to
operate.
In the survey conducted by the proponents during the market study, a total of ten
junkshops were interviewed regarding the price they are willing to sell and the volume
they are able to supply in a period of time. The result of the survey shows 40% of the
junkshops are able to supply at least 1,000 kilograms per week and 34% of which sell at a
price of Php 18.00. The summary of the findings are shown in the table below and
graphical representation are presented to further the analysis.
Table 3.8.1.1 Interviewed Junkshops
Junkshop Name
J1 MAA Junkshop
J2 BCA-A Junkshop
J3 Dom's Junkshop
J4 Rosita Junkshop
J7 Mookey Metal Supply
J10 Kobe Junkshop
G13 Marky Junkshop
G15 Esben Junkshop
G16 Nieves Junkshop
G22 BCY Junkshop
61 | P a g e
Selling Price /
Kilograms
Location
Kilograms
sold per week
Ma-a
13.00
31.25
Ma-a
18.00
230
Ma-a
17.00
150
Cabaguio, Agdao Proper
20.00
167.5
Brgy. Gov. Vicente Duterte, R.Castillo High way Agdao
18.00
1,000
18.00
3,250
Erlinda St. Landmark
22.00
166.67
Km. 13 Panacan
17.00
400
Km. 13 North Diversion Road Panacan
18.00
1,000
Km. 13 Panacan, D.C
19.00
1,250
Collection/selling period
125 kilograms/ month
450-470 kilograms/ 2 weeks
300 kilograms/ 2 weeks
335 kilograms/ 2 weeks
1,800-2,200 kilograms/ 2 weeks
1,300 kilograms/ 2-3 times a week
2,000 kilograms/ 3 months
1,600 kilograms/ month
2,000 kilograms/ 2 weeks
1,200-1,300 kilograms/ week
Willing to Sell
for a higher
price?
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
40%
60%
According to the information and as shown in only four of the ten junkshops meet
the criteria that at least 1,000 kilograms be supplied per week. So, the proponents decided
to procure information from the Business Bureau with the list of registered junkshops in
Davao. The lists of potential suppliers are identified in table 3.8.1.2 with its relative
distance from the plant.
62 | P a g e
63 | P a g e
limited within the 14.9-kilometer radius is due to the farthest junkshop interviewed in
table 3.8.1.1.
The table below shows the estimated daily procurement of raw materials which
varies every day and every two weeks.
Table 3.8.1.3a Daily procurement schedule
Week
Monday
Tuesday
Wednesday
Thursday
Friday
Total
2,000 kilos
(supplier 3)
4,000 kilos
(supplier 4)
4,000 kilos
(supplier 4 &5)
14,000
kilos
2,000 kilos
(supplier 8)
2,000 kilos
(supplier 9)
2,000 kilos
(supplier 10)
10,000
kilos
2,000 kilos
(supplier 3)
4,000 kilos
(supplier 4)
4,000 kilos
(supplier 4 &5)
14,000
kilos
2,000 kilos
(supplier 8)
2,000 kilos
(supplier 9)
2,000 kilos
(supplier 10)
10,000
kilos
Total
48,000
kilos
Differing volumes are acquired due to the different volume supplied by the
identified four suppliers, which are highlighted in table 3.8.1.1. Supplier 2 and 3 are those
junkshops which can supply 1,000 kilograms per week. Supplier 4 is the junkshop which
supplies 3,250 kilograms per week, and supplier 5 is the junkshop which supplies 2,500
kilograms per week. Suppliers 6 to 10 are assumed to be one of the junkshops listed in
Table 3.8.1.2.
Table 3.8.1.3b shows the estimated monthly procurement of 48,000 kilograms
with a total of 576,000 kilograms for 2016.
64 | P a g e
Month
January
February
March
April
May
June
July
August
September
October
November
December
TOTAL
Total
Production
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
48,000 kilos
576,000 kilos
The table below shows the expected yearly procurement with a discretionary
increase of 5 %.
Table 3.8.1.3c Yearly procurement schedule
Year
2016
2017
2018
2019
2020
65 | P a g e
Total
Production
576,000 kilos
576,000 kilos
576,000 kilos
576,000 kilos
576,000 kilos
3.9 Utilities
3.9.1 Electricity
Table 3.9.1.1 Davao Light and Power Company18
Average Rates per kWh from January to June 2014
The companys electric power provider will be Davao Light and Power Company,
which is also the source of the data above. According to the data, the rate that will be
used in the computation of the electric power consumption is 5.8375 Php/kWh. This is
the average rate from January to June 2014 for consumers belonging to the 69 kV-B
category.
The formula for the computation of electric consumption is:
Wattage x No. of Units x Hours Used per Day x 20 days = Estimated kWh per Month
1000
18
http://www.davaolight.com/index.php?view=article&catid=45%3Amonthly-rateschedule&id=2071%3Amonthly-rates-per-schedule-from-january-to-august2014&option=com_content&Itemid=76
66 | P a g e
Total electric consumption per month of the plant facility is 19,902.40 kWh and the total
consumption cost is 116,180 Php per month. Using the inflation rate of 3.74% the cost for the
first year will be 1,500,397 Php (19,902.4 x 12 x 5.8375 x 1.0374 x 1.0374). The inflation rate is
multiplied twice because the operations will start 2 years from 2014, the year when the data was
taken.
67 | P a g e
Table 3.9.1.2b Plant Facility Electric Consumption for the First Year of Operation
The electric consumption of the company is constant for the first five years of
operation because regardless of the volume of the PET flakes processed, the electric
power required for the machines and equipment to operate and the number of hours they
are used per day is constant. The changes in the total cost of electric consumption are due
to the inflation rate.
68 | P a g e
The following data is related to the electric consumption in the Administrative facility:
Table 3.9.1.3a Monthly Electric Consumption of Administrative Facility
The total electric consumption per month of the companys administrative facility
is 690.24 kWh with a total cost of 4,029 Php. Reflective of the inflation rate, the total
cost for the first year will be 52,036 Php (690.24 x 12 x 5.8375 x 1.0374 x 1.0374) . Just
like the data from the previous page, the data above was gathered in 2014 which is why
the inflation rate is multiplied twice.
69 | P a g e
Table 3.9.1.3b Administrative Facility Electric Consumption for the First Year of
Operation
Table 3.9.1.3c Plant Facility Electric Consumption for the First Five Years of
Operation
The changes in the amounts are still due to the inflation rate.
70 | P a g e
3.9.2 Water
Table 3.9.2.1 Davao City Water District
Rates for 2014
Davao City Water District will be the companys water provider. The data
presented in the previous page are the rates for 2014 and based on the companys chosen
connection size the rate is 72 per cubic meter with a fixed minimum charge of 5,492.00
Php per month.
The formula for the computation of water consumption cost is:
(Cubic Meters of Water Consumed x 72.00 Php) + 5,492.00 Php = Cost of Water Consumption
Table 3.9.2.2 Water Consumption Rates Reflecting Inflation Rate of 3.74%
The variable rate of 77.49 Php is computed by multiplying the current rate of
72.00 Php by 1.0374 twice. The other rates also reflect the inflation rate of 3.74%. The
same goes with the fixed rate of 5.910.48 Php (5,492.00 Php x 1.0374 x 1,0374). This
rate will be the basis in computing the costs found in the following table.
71 | P a g e
Table 3.9.2.3 Plant Facility Water Consumption in the First Year of Operation
The companys machines and equipment will require 1.5 cubic meter of water per
ton of raw materials used in production. Since the companys raw materials used in
production is 48,000 kilos or 48 tons in the first year, the monthly water consumption
will be 72m3 (48x 1.5) or a total of 792 tons in the first year. This will result to a total
water consumption cost of 132,295 Php which is computed by multiplying 792m3 by
77.49 Php inflated cost per cubic meter and adding the inflated fix minimum charge of
70,925.76 Php (5,910.48 Php x 12), the difference is due to rounding off.
Plant Facility Water Consumption in the First Five Years of Operation
The increase in water consumption is due to the increase in production for the
succeeding years. The information on the increase in production is found in Table 3.3.2c
under technical feasibility.
72 | P a g e
Cost of Consumption of Drinking Water for the First Five Years of Operations
The estimated drinking water consumption is two (2) 5-gallon containers per day.
Since there are 20 working days per month, a total of forty (40) 5-gallon containers will
be consumed. Each container costs 30.00 Php, which means that a total cost of 1,200.00
Php will be spent each month or 14,400 Php per year for drinking water. This is 15,497
Php with inflation in the first year.
19
http://www.south-staffs-water.co.uk/publications/your_business/WaterUseBusiness.pdf
73 | P a g e
Table 3.9.2.4a Consumption of Non-drinking Water for the First Year of Operations
Table 3.9.2.4b Cost of Consumption of Non-drinking Water for the First Five Years
of Operations
74 | P a g e
20
http://nett21.gec.jp/Ecotowns/data/et_a-03.html
75 | P a g e
2016
2017
2018
2019
2020
3.2.B.3
12,397,810
12,397,810
1,033,151
11,364,659
1,033,151
13,504,562
14,537,713
1,033,151
13,504,562
1,033,151
14,710,114
15,743,265
1,033,151
14,710,114
1,033,151
16,023,286
17,056,437
1,033,151
16,023,286
1,033,151
17,453,685
18,486,836
1,033,151
17,453,685
1,044,341
1,142,559
1,185,291
1,229,620
1,275,608
3.1
10
11.1
5
12
13
5,067
1,117,596
1,626,781
623,164
792,189
55,000
4,219,797
5,896
1,159,394
1,696,883
679,815
836,890
60,500
4,439,377
6,419
1,202,755
1,764,129
679,815
884,334
66,550
4,604,002
7,000
1,247,738
1,834,228
679,815
934,711
73,205
4,776,697
7,627
1,294,404
1,907,316
679,815
988,223
80,526
4,957,909
16,628,797
16,628,797
15,747
19,086,498
15,747
19,102,245
9,468
20,499,407
9,468
20,508,875
10,975
22,029,604
10,975
22,040,579
70,437
23,687,202
70,437
23,757,640
76,583
16,613,050
19,092,778
20,497,899
21,970,142
23,681,057
3.2.B.3
Direct Labor
Manufacturing Overhead
Indirect Material
Indirect Labor
Plant Utilities
Depreciation
Repairs and Maintenance
Miscellaneous Factory Expense
Total Manufacturing Overhead
TOTAL MANUFACTURING COSTS
ADD: WORK IN PROCESS, BEGINNING
TOTAL COST OF GOODS PLACED IN PROCESS
LESS: WORK IN PROCESS, ENDING
COST OF GOODS MANUFACTURED
76 | P a g e
3.3
3.3
No. of
Workers
3
Sorter
Packer
Maintenance
Personnel
Driver Procurement
Forklift Driver/
Warehouse
Officer
Helper
Receiving/
Shipping
Officer
Operations
Manager
Quality
Assurance
Personnel
Managing
Partner
Job Description
Labor
Classification
Net Pay21
Qualifications
Direct
6,331.70
Direct
6,331.70
Direct
6,331.70
Direct
6,331.70
Indirect
6,331.70
Transfers finished
goods to the output
storage
Indirect
6,331.70
Indirect
6,331.70
Indirect
12,459.17
Graduate of any
business related course
Indirect
19,839.53
Business Management
Graduate with
excellent leadership
skills
Indirect
16,151.95
Graduate of Chemical
Engineering
Administrative
30,214.53
Specified in the
Articles of Partnership
21http://www.bles.dole.gov.ph/PUBLICATIONS/Current%20Labor%20Statistics/STATISTICAL%20TABLES/PDF/tab24.pdf
77 | P a g e
Position
Internal
Auditor
No. of
Workers
1
Cost
Accountant
Human
Resource
Officer
Payroll
Accountant/
Cash Receipt
General
Accountant
Bookkeeper
Treasurer
Marketing
Analyst
Sales/Purchase
Order Officer
Inventory/
Supply Analyst
Cash
Disbursements
Officer
Customer
Remittance/
Billing Officer
Security Guard
1
Security Guard
2
78 | P a g e
Job Description
Net Pay
Qualifications
Administrative
23,277.03
Graduate of
Bachelor of Science
in Accountancy preferably CPA
Administrative
19,839.53
Certified Cost
Accountant
Administrative
16,151.95
Administrative
16,151.95
Administrative
8,703.37
Certified
Bookkeeper
Administrative
8,703.37
Certified
Bookkeeper
Administrative
12,459.17
College Graduate
and has experience
in cash management
Administrative
16,151.95
Marketing Graduate
Administrative
12,459.17
Graduate of any
business related
course
Administrative
12,459.17
Graduate of any
business related
course
Administrative
12,459.17
Graduate of any
business related
course
Administrative
12,459.17
Graduate of any
business related
course
Administrative
6,526.70
Criminology
Undergraduate
Administrative
6,808.80
Criminology
Undergraduate
Labor
Classification
Graduate of Human
Resource
Management
Graduate of
Bachelor of Science
in Accountancy preferably CPA
The minimum wage for non-agricultural companies is 312.00 per day according to the
data gathered from the Department of Labor and Employment. The data relating to the pay of
each personnel can be seen in the Payroll Schedule presented in Appendix H.
79 | P a g e
Cash will be composed of Cash in Bank and Petty Cash. The Cash in Bank is used for the
receipts of payment from customers. The same shall be used for disbursements to
suppliers and payments for the companys expenses. The Petty Cash shall be used for
disbursement of minute expenses.
Accounts receivable will be 98% collectible in the following month. Thus, an allowance
of 2% of Accounts Receivable is established.
Sales price will be constant for five years but is subject to managements discretion.
Inflation rate will be 3.74% annually. The basis of which is the average of inflation rates
from 2009-2013 as provided by National Statistics Coordination Board22.
Selling Expenses, such as freight out, website maintenance expense, and traveling and
transportation expense are subject to inflation rate. Further, traveling and transportation
expenses related to selling is assumed to increase by 10% per year.
Administrative expenses, such as salaries and wages, utilities expense, office supplies
expense, telecommunications expense, and repairs and maintenance are projected with
inflation rate. Further, the proponents assume that the repairs and maintenance for the
first year is 20% of the cost and increases by 5% yearly to reflect more repairs as
22
http://www.nscb.gov.ph/secstat/d_price.asp
80 | P a g e
equipments are being used. The maximum repairs are assumed to be up to 50% of the
cost only.
Electricity consumption will be the same for five years and is assumed to be distributed
equally on each month every year.
Water consumption for the processing plant will vary each year depending on the
utilization rate of the production line. However, water consumption in the office will be
the same for five years.
Salaries and wages are payable every 15th and 30th of the month.
The useful lives of depreciable assets are provided in the notes to financial statements.
Each asset has no salvage value. The depreciation cost will be allocated as either
operating or administrative expense depending of its usage.
The employees are assumed to be single for the purpose of computing the mandatory
contributions.
81 | P a g e
Table 4.2.1
The composition of the total operating cost for the first quarter are as follows:
Table 4.2.2
82 | P a g e
incur any liabilities aside from the mandatory payables and utilities payable each month
that has accrued which are constituted in the normal operations of the business.
Mandatory payables include SSS, HDMF, PHIC Contributions Payables, withholding tax
payable, VAT payable, and income tax payable.
4.3.2 Cash management
The management of the companys cash involves the maintenance of a cash
investment level which enhances the ability of the company to meet its cash requirement
for its expenditures and payables. Moreover a five year cash flow statement was
presented for five years in planning the amount and timing of cash requirements and
availability of the company that would help in projecting the forecast of how much
inflows are expected at a particular timing of cash payments. If the company then will
incur a cash deficit, acquiring a loan will be considered as an alternative.
Regarding the control system of the company, proper authorization for the
handling of cash will be ensured. Monitoring and verification of cash sources will be
implemented in order to minimize the actual losses associated with misappropriations and
improper handling of cash. Cash receipts each day will also be deposited in the bank.
83 | P a g e
DPET Processing Plant will require and hold a petty cash fund of 10,000 each
month to facilitate the normal operations of the business and to provide a buffer if any
contingencies occur.
4.3.3 Inventory management
The company is to procure its direct materials on a daily basis whereas office
supplies are bought depending on the nature of the office supplies. Both are projected
reflecting the inflation rate.
For office supplies:
Office supplies are procured depending based on its relative use. For
example, pens are purchased quarterly. Further, ink for pens are purchased to
cover the months ball pens are not purchased. Therefore the inks which cost
more or less half of the cost of ball pens are purchased twice every quarter.
Markers, because of their relatively long usage are purchased twice a year,
however ink for markers are purchased. Some office supplies however are
purchased monthly such as bond papers, folders, envelopes and the like. Other
supplies such as glass set, cup set and the like are purchased in January.
For direct materials:
The management of direct materials shall be under the control of the
supply analyst who shall make sure that enough raw materials be stored to sustain
the continuity of operations. Inventory of raw materials are specifically stored in
the input storage building of the company.
84 | P a g e
in short term or long term loan from financial institutions in order to start with the
construction and further company operations.
Partner A = 4,000,000.00 Php
Partner B = 4,000,000.00 Php
Partner C = 4,000,000.00 Php
Partner D = 4,000,000.00 Php
Partner E = 4,000,000.00 Php
Partner F = 4,000,000.00 Php
Total
= 24,000,000.00 Php
86 | P a g e
87 | P a g e
FEBRUARY
MARCH
NOTES
1
2
3
4
7,224,041
1,033,151
55,000.00
8,312,192
5,911,165
484,289
1,766,375
50,000.00
8,211,830
5,364,132
958,893
1,702,927
45,000.00
8,070,952
5
6
15,317,908
249,392
15,567,300
23,879,492
15,253,111
313,382
15,566,492
23,778,323
15,188,313
384,189
15,572,503
23,643,455
581,406
581,406
749,546
749,546
899,896
899,896
24,000,000
(581,914)
23,418,086
120,000
23,298,086
23,298,086
(149,310)
23,148,776
120,000
23,028,776
23,028,776
(165,217)
22,863,559
120,000
22,743,559
23,879,492
23,778,323
23,643,455
17
88 | P a g e
MAY
JUNE
NOTES
1
2
3
4
120,000
18,000.00
138,000
120,000
484,289
8,864
16,500.00
629,654
120,000
968,579
8,403
15,000.00
1,111,982
5
6
15,825
6
15,831
153,831
15,561
6
15,567
645,221
15,298
6
15,304
1,127,286
1,614
1,614
3,659
3,659
3,659
3,659
20,000
(20,000)
(20,000)
(20,000)
20,000
(40,000)
(40,000)
(40,000)
20,000
(60,000)
(18,386)
(36,341)
(56,341)
17
89 | P a g e
AUGUST
SEPTEMBER
NOTES
1
2
3
4
4,782,947
949,207
1,449,133
25,000.00
7,206,287
4,710,517
949,207
1,385,684
20,000.00
7,065,409
4,638,088
949,207
1,322,236
15,000.00
6,924,531
5
6
14,929,124
532,241
15,461,365
22,667,652
14,864,327
557,943
15,422,270
22,487,679
14,799,530
628,751
15,428,280
22,352,811
749,546
749,546
749,546
749,546
899,896
899,896
22,098,275
(60,169)
22,038,105
120,000
21,918,105
21,918,105
(59,973)
21,858,132
120,000
21,738,132
21,738,132
(165,217)
21,572,915
120,000
21,452,915
22,667,652
22,487,679
22,352,811
17
90 | P a g e
NOVEMBER
DECEMBER
NOTES
1
2
3
4
4,415,136
949,207
1,258,787
10,000.00
6,633,130
4,342,706
949,207
1,195,339
5,000.00
6,492,252
4,270,276
949,207
1,131,890
6,351,374
5
6
14,734,732
654,505
15,389,238
22,022,368
14,669,935
680,208
15,350,143
21,842,395
14,605,138
751,015
15,356,153
21,707,527
749,546
749,546
749,546
749,546
899,896
899,896
21,452,915
(60,094)
21,392,821
120,000
21,272,821
21,272,821
(59,973)
21,212,848
120,000
21,092,848
21,092,848
(165,217)
20,927,631
120,000
20,807,631
22,022,368
21,842,395
21,707,527
17
91 | P a g e
2017
2018
NOTES
1
2
3
4
4,270,277
949,207
1,131,890
6,351,375
2,392,375
984,708
1,321,969
4,699,052
310,190
1,532,304
1,691,127
3,533,620
5
6
14,605,138
751,015
15,356,153
21,707,528
13,827,570
1,072,076
14,899,647
19,598,699
13,050,003
1,245,173
14,295,177
17,828,796
899,897
899,897
980,211
980,211
1,054,201
1,054,201
24,000,000
(1,752,369)
22,247,631
1,440,000
20,807,631
20,807,631
(749,143)
20,058,489
1,440,000
18,618,489
18,618,489
(403,893)
18,214,595
1,440,000
16,774,595
21,707,528
19,598,699
17,828,796
17
2020
NOTES
Cash
Accounts Receivable
Inventories
Prepaid Expenses
Total Current Assets
1
2
3
4
864,370
1,589,612
1,475,735
3,929,718
1,337,619
1,649,063
1,531,053
4,517,735
5
6
12,272,436
494,158
12,766,594
16,696,312
11,494,868
173,097
11,667,965
16,185,700
1,127,915
1,127,915
1,254,113
1,254,113
16,774,595
233,802
17,008,397
1,440,000
15,568,397
15,568,397
803,190
16,371,587
1,440,000
14,931,587
16,696,312
16,185,700
Non Current
Property Plant and Equipment
Deferred Tax Asset
Total Non Current Assets
TOTAL ASSETS
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities
TOTAL LIABILITIES
Parners' Equity
Partner's Equity, beginning
Add: Net Income (Loss)
Total:
Less: Withdrawal
Partner's Equity, ending
TOTAL LIABILITIES AND PARTNERSHIP
EQUITY
92 | P a g e
17
Sales
Less: Cost of Goods Sold
Gross Income
Add: Other Income
Total Gross Income
NOTES
8.1
19
Less: Expenses
Selling Expenses
Administrative Expenses
Other Expenses
TOTAL EXPENSES
Net Income before Tax
Less: Provision for Income Tax (30%)
Add: Income Tax Benefit
Net Income After Tax
93 | P a g e
8.2
14
15
16
JANUARY
-
FEBRUARY
968,579
787,348
181,231
82,652
263,883
MARCH
1,937,158
1,574,697
362,461
82,652
445,113
86,861
333,829
410,617
140,467
330,298
6,417
194,074
330,298
156,766
831,306
477,182
681,138
(831,306)
249,392
(213,299)
63,990
(236,025)
70,807
(581,914)
(149,310)
(165,217)
MAY
1,937,158
1,574,697
362,461
82,652
445,113
JUNE
1,937,158
1,574,697
362,461
82,652
445,113
194,074
330,471
6,417
194,074
330,298
6,417
194,074
330,298
156,766
TOTAL EXPENSES
530,962
530,789
681,138
(85,848)
25,755
(85,675)
25,703
(236,025)
70,807
(60,094)
(59,973)
(165,217)
Sales
Less: Cost of Goods Sold
Gross Income
Add: Other Income
Total Gross Income
NOTES
8.1
19
Less: Expenses
Selling Expenses
Administrative Expenses
Other Expenses
94 | P a g e
8.2
14
15
16
Sales
Less: Cost of Goods Sold
Gross Income
Add: Other Income
Total Gross Income
NOTES
8.1
19
Less: Expenses
Selling Expenses
Administrative Expenses
Other Expenses
8.2
AUGUST
SEPTEMBER
1,937,158
1,937,158
1,574,697
1,574,697
362,461
362,461
82,652
82,652
445,113
445,113
194,074
330,579
6,417
194,074
330,298
6,417
194,074
330,298
156,766
TOTAL EXPENSES
531,070
530,789
681,138
(85,956)
25,787
(85,675)
25,703
(236,025)
70,807
(60,169)
(59,973)
(165,217)
95 | P a g e
14
15
16
JULY
1,937,158
1,574,697
362,461
82,652
445,113
Sales
Less: Cost of Goods Sold
Gross Income
Add: Other Income
Total Gross Income
Less: Expenses
Selling Expenses
Administrative Expenses
Other Expenses
194,074
330,471
6,417
194,074
330,298
6,417
194,074
330,298
156,766
TOTAL EXPENSES
530,962
530,789
681,138
(85,848)
25,755
(85,675)
25,703
(236,025)
70,807
(60,094)
(59,973)
(165,217)
96 | P a g e
14
15
16
Sales
Less: Cost of Goods Sold
Gross Income
Add: Other Income
Total Gross Income
NOTES
8.1
19
Less: Expenses
Selling Expenses
Administrative Expenses
Other Expenses
TOTAL EXPENSES
Net Income before Tax
Less: Provision for Income Tax (30%)
Add: Income Tax Benefit
Net Income After Tax
97 | P a g e
8.2
14
15
16
2016
20,340,157
16,534,315
3,805,841
909,173
4,715,014
2,168,066
3,967,734
1,082,597
2017
24,115,290
18,896,683
5,218,606
1,080,365
6,298,971
1.1856
1.1429
2,410,259
4,120,882
838,033
2018
26,059,585
20,130,221
5,929,364
1,176,809
7,106,173
1.0806
1.0653
2,498,432
4,289,318
895,414
7,218,398
7,369,175
7,683,163
(2,503,384)
751,015
(1,070,204)
321,061
(576,990)
173,097
(1,752,369)
(749,143)
(403,893)
Sales
Less: Cost of Goods Sold
Gross Income
Add: Other Income
Total Gross Income
NOTES
8.1
19
Less: Expenses
Selling Expenses
Administrative Expenses
Other Expenses
TOTAL EXPENSES
Net Income before Tax
Less: Provision for Income Tax (30%)
Add: Income Tax Benefit
Net Income After Tax
98 | P a g e
8.2
14
15
16
2019
29,196,950
22,245,155
6,951,796
1,281,863
8,233,659
1.1204
1.1051
2,594,033
4,473,608
932,216
2020
31,410,728
23,631,961
7,778,767
1,396,295
9,175,062
1.0758
1.0623
2,697,755
4,680,534
993,584
7,999,857
8,371,872
233,802
(70,141)
70,141
233,802
803,190
(240,957)
240,957
803,190
4.6.3
Notes
JANUARY
FEBRUARY
MARCH
Operating Activities
Net Income
Adjustments to convert net income to cash basis:
Depreciation Expense
Decrease (Increase) in Accounts Receivable
Decrease (Increase) in Inventories
Decrease (Increase) in Deferred Tax Asset
Decrease (Increase) in Prepaid Expenses
Increase (Decrease) in Current Liabilities
(581,914)
(149,310)
(165,217)
8,146
(1,033,151)
(249,392)
(55,000)
581,406
64,797
(484,289)
(733,225)
(63,990)
5,000
168,140
64,797
(474,604)
63,449
(70,807)
5,000
150,349
(1,329,905)
(1,192,876)
(427,033)
Investing Activities
Additons to Property, Plant and Equipment:
Land
Land Improvements
Office Building
Plant Building
Factory Equipment and Machineries
Factory Furniture and Fixtures
Office Equipment
Office Furniture and Fixtures
Website Cost
Net cash used in investing activities
Financing Activities
Investment of Partners
Withdrawals
Net cash used in financing activities
Net Increase (Decrease) in Cash
Cash, Beginning Balance
Cash, Ending Balance
99 | P a g e
9.1.A
9.1.B
9.1.C
9.1.C
9.1.D
9.1.E
9.1.F
9.1.G
9.1.H
(5,000,000)
(350,000)
(909,091)
(5,090,909)
(3,451,856)
(15,825)
(167,570)
(75,927)
(264,876)
(15,326,054)
24,000,000
120,000
23,880,000
7,224,041
0
7,224,041
120,000
(120,000)
(1,312,876)
7,224,041
5,911,165
120,000
(120,000)
(547,033)
5,911,165
5,364,132
Notes
APRIL
MAY
JUNE
Operating Activities
Net Income
Adjustments to convert net income to cash basis:
Depreciation Expense
Decrease (Increase) in Accounts Receivable
Decrease (Increase) in Inventories
Decrease (Increase) in Deferred Tax Asset
Decrease (Increase) in Prepaid Expenses
Increase (Decrease) in Current Liabilities
(60,094)
(59,973)
(165,217)
64,797
9,686
63,449
(25,755)
5,000
(150,349)
64,797
63,449
(25,703)
5,000
-
64,797
63,449
(70,807)
5,000
150,349
(93,266)
47,570
47,570
Investing Activities
Additons to Property, Plant and Equipment:
Land
Land Improvements
Office Building
Plant Building
Factory Equipment and Machineries
Factory Furniture and Fixtures
Office Equipment
Office Furniture and Fixtures
Website Cost
Net cash used in investing activities
Financing Activities
Investment of Partners
Withdrawals
Net cash used in financing activities
Net Increase (Decrease) in Cash
Cash, Beginning Balance
Cash, Ending Balance
100 | P a g e
9.1.A
9.1.B
9.1.C
9.1.C
9.1.D
9.1.E
9.1.F
9.1.G
9.1.H
120,000
(120,000)
(213,266)
5,364,132
5,150,866
120,000
(120,000)
(72,430)
5,150,866
5,078,436
120,000
(120,000)
(72,430)
5,078,436
5,006,007
Notes
JULY
AUGUST
SEPTEMBER
Operating Activities
Net Income
Adjustments to convert net income to cash basis:
Depreciation Expense
Decrease (Increase) in Accounts Receivable
Decrease (Increase) in Inventories
Decrease (Increase) in Deferred Tax Asset
Decrease (Increase) in Prepaid Expenses
Increase (Decrease) in Current Liabilities
(60,169)
(59,973)
(165,217)
64,797
63,449
(25,787)
5,000
(150,349)
64,797
63,449
(25,703)
5,000
-
64,797
63,449
(70,807)
5,000
150,349
(103,060)
47,570
47,570
Investing Activities
Additons to Property, Plant and Equipment:
Land
Land Improvements
Office Building
Plant Building
Factory Equipment and Machineries
Factory Furniture and Fixtures
Office Equipment
Office Furniture and Fixtures
Website Cost
Net cash used in investing activities
Financing Activities
Investment of Partners
Withdrawals
Net cash used in financing activities
Net Increase (Decrease) in Cash
Cash, Beginning Balance
Cash, Ending Balance
101 | P a g e
9.1.A
9.1.B
9.1.C
9.1.C
9.1.D
9.1.E
9.1.F
9.1.G
9.1.H
120,000
(120,000)
(223,060)
5,006,007
4,782,947
120,000
(120,000)
(72,430)
4,782,947
4,710,517
120,000
(120,000)
(72,430)
4,710,517
4,638,088
Notes
OCTOBER
NOVEMBER
DECEMBER
Operating Activities
Net Income
Adjustments to convert net income to cash basis:
Depreciation Expense
Decrease (Increase) in Accounts Receivable
Decrease (Increase) in Inventories
Decrease (Increase) in Deferred Tax Asset
Decrease (Increase) in Prepaid Expenses
Increase (Decrease) in Current Liabilities
(60,094)
(59,973)
(165,217)
64,797
63,449
(25,755)
5,000
(150,349)
64,797
63,449
(25,703)
5,000
-
64,797
63,449
(70,807)
5,000
150,349
(102,952)
47,570
47,570
Investing Activities
Additons to Property, Plant and Equipment:
Land
Land Improvements
Office Building
Plant Building
Factory Equipment and Machineries
Factory Furniture and Fixtures
Office Equipment
Office Furniture and Fixtures
Website Cost
Net cash used in investing activities
Financing Activities
Investment of Partners
Withdrawals
Net cash used in financing activities
Net Increase (Decrease) in Cash
Cash, Beginning Balance
Cash, Ending Balance
102 | P a g e
9.1.A
9.1.B
9.1.C
9.1.C
9.1.D
9.1.E
9.1.F
9.1.G
9.1.H
120,000
(120,000)
(222,952)
4,638,088
4,415,136
120,000
(120,000)
(72,430)
4,415,136
4,342,706
120,000
(120,000)
(72,430)
4,342,706
4,270,276
Notes
Operating Activities
Net Income
Adjustments to convert net income to cash basis:
Depreciation Expense
Decrease (Increase) in Accounts Receivable
Decrease (Increase) in Inventories
Decrease (Increase) in Deferred Tax Asset
Decrease (Increase) in Prepaid Expenses
Increase (Decrease) in Current Liabilities
Net cash provided by operating activities
Investing Activities
Additons to Property, Plant and Equipment:
Land
Land Improvements
Office Building
Plant Building
Factory Equipment and Machineries
Factory Furniture and Fixtures
Office Equipment
Office Furniture and Fixtures
Website Cost
Net cash used in investing activities
Financing Activities
Investment of Partners
Withdrawals
Net cash used in financing activities
Net Increase (Decrease) in Cash
Cash, Beginning Balance
Cash, Ending Balance
103 | P a g e
9.1.A
9.1.B
9.1.C
9.1.C
9.1.D
9.1.E
9.1.F
9.1.G
9.1.H
2016
2017
2018
(1,752,369)
(749,143)
(403,893)
720,916
(949,207)
(1,131,890)
(751,015)
899,897
777,567
(35,500)
(190,079)
(321,061)
80,314
777,567
(547,596)
(369,158)
(173,097)
73,991
(2,963,669)
(437,902)
(642,186)
(5,000,000)
(350,000)
(909,091)
(5,090,909)
(3,451,856)
(15,825)
(167,570)
(75,927)
(264,876)
(15,326,054)
24,000,000
1,440,000
22,560,000
4,270,277
4,270,277
1,440,000
(1,440,000)
(1,877,902)
4,270,277
2,392,375
1,440,000
(1,440,000)
(2,082,186)
2,392,375
310,190
Notes
Operating Activities
Net Income
Adjustments to convert net income to cash basis:
Depreciation Expense
Decrease (Increase) in Accounts Receivable
Decrease (Increase) in Inventories
Decrease (Increase) in Deferred Tax Asset
Decrease (Increase) in Prepaid Expenses
Increase (Decrease) in Current Liabilities
Net cash provided by operating activities
Investing Activities
Additons to Property, Plant and Equipment:
Land
Land Improvements
Office Building
Plant Building
Factory Equipment and Machineries
Factory Furniture and Fixtures
Office Equipment
Office Furniture and Fixtures
Website Cost
Net cash used in investing activities
Financing Activities
Investment of Partners
Withdrawals
Net cash used in financing activities
Net Increase (Decrease) in Cash
Cash, Beginning Balance
Cash, Ending Balance
104 | P a g e
2019
2020
233,802
803,190
777,567
(57,308)
215,391
751,015
73,713
777,567
(59,451)
(55,318)
321,061
126,199
1,994,181
1,913,248
9.1.A
9.1.B
9.1.C
9.1.C
9.1.D
9.1.E
9.1.F
9.1.G
9.1.H
-
1,440,000
(1,440,000)
554,181
310,190
864,370
1,440,000
(1,440,000)
473,248
864,370
1,337,619
Note 1: Cash
Assumptions:
Cash will be composed of Cash in Bank and Petty Cash. The Cash in Bank is used for the
receipts of payment from customers. The same shall be used for disbursements to suppliers and
payments for the companys expenses. The Petty Cash shall be used for disbursement of minute
expenses.
Sales and purchases will be 50% cash and 50% on credit. Accounts receivable will be
98% collectible in the following month. The cash deposited in bank is deposited in a checking
account.
JANUARY
Cash in Bank
7,214,041.10
FEBRUARY
5,901,165.34
5,068,436.31
4,996,006.71
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
5,364,132.08
5,150,865.92
5,078,436.31
5,006,006.71
AUGUST
4,772,946.76
SEPTEMBER
4,700,517.16
OCTOBER
4,628,087.55
NOVEMBER
4,405,135.60
DECEMBER
4,332,706.00
4,260,276.39
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
4,782,946.76
4,710,517.16
4,638,087.55
4,415,135.60
4,342,706.00
4,270,276.39
105 | P a g e
5,140,865.92
JUNE
5,911,165.34
Cash in Bank
Total Cash
5,354,132.08
MAY
10,000.00
APRIL
7,224,041.10
JULY
Cash in Bank
MARCH
2016
2017
4,150,277.40
2,272,375.38
2018
190,189.59
2019
744,370.40
2020
1,217,618.53
120,000.00
120,000.00
120,000.00
120,000.00
120,000.00
4,270,277.40
2,392,375.38
310,189.59
864,370.40
1,337,618.53
NOTES
8.10
Accounts Receivable,
Beginning
Add: Accounts
Receivable for the period
(credit sales)
Less: Collection
Accounts Receivable
Balance
Less: Allowance for
Doubtful Accounts
Accounts Receivable,
End
Sales
Downpayment
Accounts Receivable,
Beginning
Add: Accounts
Receivable for the period
(credit sales)
Less: Collection
Accounts Receivable
Balance
Less: Allowance for
Doubtful Accounts
Accounts Receivable,
End
106 | P a g e
JANUARY
-
FEBRUARY
968,578.88
484,289.44
APRIL
1,937,157.77
968,578.88
MAY
1,937,157.77
968,578.88
JUNE
1,937,157.77
968,578.88
484,289.44
968,578.88
968,578.88
968,578.88
484,289.44
-
968,578.88
484,289.44
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
484,289.44
968,578.88
968,578.88
968,578.88
968,578.88
9,685.79
19,371.58
19,371.58
19,371.58
958,893.10
949,207.31
949,207.31
949,207.31
484,289.44
NOTES
8.10
MARCH
1,937,157.77
968,578.88
JULY
1,937,157.77
968,578.88
AUGUST
1,937,157.77
968,578.88
SEPTEMBER
1,937,157.77
968,578.88
OCTOBER
1,937,157.77
968,578.88
NOVEMBER
1,937,157.77
968,578.88
DECEMBER
1,937,157.77
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
968,578.88
19,371.58
19,371.58
19,371.58
19,371.58
19,371.58
19,371.58
949,207.31
949,207.31
949,207.31
949,207.31
949,207.31
949,207.31
NOTES
8.10
Sales
Downpayment
Accounts Receivable,
Beginning
Add: Accounts
Receivable for the period
(credit sales)
Less: Collection
Accounts Receivable
Balance
Less: Allowance for
Doubtful Accounts
Accounts Receivable,
End
2016
20,340,156.56
10,170,078.28
2017
24,115,289.62
12,057,644.81
2018
26,059,584.85
13,029,792.42
2019
29,196,950.39
14,598,475.19
2020
31,410,728.05
15,705,364.02
968,578.88
1,004,803.73
1,563,575.09
1,622,052.80
10,170,078.28
9,201,499.40
12,057,644.81
12,021,419.96
13,029,792.42
12,471,021.07
14,598,475.19
14,539,997.49
15,705,364.02
15,644,699.25
968,578.88
1,004,803.73
1,563,575.09
1,622,052.80
1,682,717.57
19,371.58
20,096.07
31,271.50
32,441.06
33,654.35
949,207.31
984,707.66
1,532,303.59
1,589,611.74
1,649,063.22
Note 3: Inventories
Assumption: FIFO costing method is used.
NOTES
Operation Supplies
Inventory, End
Raw Materials
Inventory, End
Work in Process
Inventory, End
Finished Goods
Inventory, End
3.2
1,033,150.81
MARCH
APRIL
MAY
JUNE
8,864.07
8,403.41
7,942.75
7,482.09
7,021.44
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
3.3
15,746.97
31,493.93
47,240.90
62,987.87
3.4
708,613.51
629,878.68
551,143.84
472,409.01
472,409.01
1,033,150.81
1,766,375.36
1,702,926.83
1,639,478.31
1,576,029.78
1,512,581.26
JULY
AUGUST
SEPTEMBER
OCTOBER
NOTES
107 | P a g e
FEBRUARY
3.1
Operation Supplies
Inventory, End
Raw Materials Inventory,
End
Work in Process
Inventory, End
Finished Goods
Inventory, End
Total Inventory, End
JANUARY
NOVEMBER
DECEMBER
3.1
6,560.78
6,100.12
5,639.47
5,178.81
4,718.15
4,257.49
3.2
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
3.3
15,746.97
31,493.93
47,240.90
62,987.87
3.4
15,746.97
393,674.17
314,939.34
236,204.50
157,469.67
157,469.67
78,734.83
1,449,132.73
1,385,684.21
1,322,235.68
1,258,787.16
1,195,338.63
1,131,890.10
NOTES
Operation Supplies
Inventory, End
Raw Materials Inventory,
End
Work in Process
Inventory, End
Finished Goods Inventory,
End
2016
2017
2018
2019
2020
3.1
4,257.49
4,521.61
4,493.13
4,652.53
4,728.57
3.2
1,033,150.81
1,071,790.65
1,111,875.62
1,153,459.77
1,196,599.16
3.3
15,746.97
9,448.34
10,953.91
70,304.47
76,443.77
3.4
78,734.83
236,208.56
563,804.07
247,318.73
253,281.63
1,131,890.10
1,321,969.17
1,691,126.73
1,475,735.49
1,531,053.13
JANUARY
FEBRUARY
Add: Purchases
350
MARCH
APRIL
MAY
JUNE
331
312
292
273
350
331
312
292
273
Less:Used
19
19
19
19
19
331
312
292
273
254
Assumed FIFO
EGP-Super Sack
EGP-Super Sack, Beginning (in sacks)
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
254
235
216
196
177
158
254
235
216
196
177
158
19
19
19
19
19
19
235
216
196
177
158
139
Add: Purchases
Available for Use
Less:Used
EGP-Super Sack, End (in sacks)
108 | P a g e
Assumed FIFO
EGP-Super Sack
EGP-Super Sack, Beginning (in sacks)
Add: Purchases
Available for Use
Less:Used
EGP-Super Sack, End (in sacks)
2016
2017
350
350
211
139
EGP-Super Sack
2018
139
250
389
242
147
2019
147
250
397
254
143
Unit Price
2020
143
270
413
267
146
APRIL
146
280
426
280
146
MAY
JUNE
23.75
23.75
Add: Purchases
8,313.10
8,313.10
7,857.06
7,401.03
6,945.00
6,488.97
Used
456.03
456.03
456.03
456.03
456.03
7,857.06
7,401.03
6,945.00
6,488.97
6,032.93
EGP-Super Sack
Unit Price
EGP-Super Sack, Beginning (in pesos)
JULY
23.75
23.75
23.75
23.75
7,857.06
7,401.03
6,945.00
6,488.97
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
23.75
23.75
23.75
23.75
23.75
23.75
6,032.93
5,576.90
5,120.87
4,664.84
4,208.80
3,752.77
Add: Purchases
6,032.93
5,576.90
5,120.87
4,664.84
4,208.80
3,752.77
Used
456.03
456.03
456.03
456.03
456.03
456.03
5,576.90
5,120.87
4,664.84
4,208.80
3,752.77
3,296.74
EGP-Super Sack
Unit Price
EGP-Super Sack, Beginning (in pesos)
2016
23.75
-
2017
2018
2019
2020
24.64
25.56
26.52
27.51
3,296.74
3,619.13
3,651.83
3,875.47
Add: Purchases
8,313.10
6,160.01
6,390.39
7,159.74
7,702.61
8,313.10
9,456.74
10,009.52
10,811.57
11,578.08
Used
5,016.36
5,837.62
6,357.69
6,936.10
7,559.11
3,296.74
3,619.13
3,651.83
3,875.47
4,018.96
109 | P a g e
Nylon Computation:
Nylon
JAN
Nylon, Beginning
(in roll)
FEB
Add:Purchases
20
MAR
APR
MAY
JUNE
JULY
AUG
SEPT
OCT
NOV
DEC
20
20
20
20
20
19
19
19
19
19
20
20
20
20
20
20
19
19
19
19
19
0.0914
0.0914
0.0914
0.0914
0.0914
0.0914
0.0914
0.0914
0.0914
0.0914
0.0914
20
20
20
20
20
19
19
19
19
19
19
Nylon
2016
Nylon, Beginning
(in roll)
2017
2018
19
2019
18
2020
17
15
Add:Purchases
20
20
19
18
17
15
1.0057
1.1520
1.2096
1.2701
1.3336
19
18
17
15
14
Less: Used
Nylon, End (in
roll)
Nylon
JANUARY FEBRUARY
Unit Price
MARCH
APRIL
MAY
JUNE
50.58
50.58
Add: Purchases
1,011.63
1,011.63
1,007.00
1,002.38
997.75
993.13
4.62
4.62
4.62
4.62
4.62
1,007.00
1,002.38
997.75
993.13
988.50
Less: Used
Nylon, End (in pesos)
Nylon
Unit Price
Nylon, Beginning (in pesos)
Add: Purchases
Available for Use
Less: Used
Nylon, End (in pesos)
110 | P a g e
JULY
50.58
50.58
50.58
50.58
1,007.00
1,002.38
997.75
993.13
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
50.58
50.58
50.58
50.58
50.58
50.58
988.50
983.88
979.25
974.63
970.01
965.38
988.50
983.88
979.25
974.63
970.01
965.38
4.62
4.62
4.62
4.62
4.62
4.62
983.88
979.25
974.63
970.01
965.38
960.76
Nylon
2016
Unit Price
2017
2018
2019
2020
50.58
50.58
50.58
50.58
50.58
960.76
902.49
841.30
777.06
Add: Purchases
1,011.63
1,011.63
960.76
902.49
841.30
777.06
50.87
58.27
61.18
64.24
67.45
960.76
902.49
841.30
777.06
709.61
Less: Used
Nylon, End (in pesos)
FRIDAY
TOTAL
1st week
A. Schedule of Procurement
2,000
2,000
4,000
4,000
14,000
2nd week
2,000
2,000
2,000
2,000
2,000
10,000
3rd week
2,000
2,000
2,000
4,000
4,000
14,000
4th week
2,000
2,000
2,000
2,000
2,000
TOTAL
10,000
48,000
JANUARY 2016
1st week
2nd week
3rd week
4th week
TOTAL
Add: Purchases
14,000
10,000
14,000
10,000
48,000
14,000
10,000
14,000
10,000
48,000
111 | P a g e
14,000
10,000
14,000
10,000
48,000
2nd week
3rd week
4th week
48,000.0
48,000.0
48,000.0
48,000.0
62,000.0
Add: Purchases
14,000
10,000
14,000
10,000
48,000
62,000
58,000
62,000
58,000
110,000
14,000
10,000
14,000
10,000
48,000
48,000
48,000
48,000
48,000
62,000
11,200
8,000
11,200
8,000
38,400
TOTAL
2016
-
2017
2018
2019
-
2020
-
Add: Purchases
576,000
604,800
635,040
666,792
700,132
576,000
604,800
635,040
666,792
700,132
528,000
604,800
635,040
666,792
700,132
48,000
Produced Goods
Machine Capacity Used (machine
capacity is 112,500 kgs [input] per
month)
422,400
42.67%
483,840
44.80%
508,032
47.04%
533,434
49.39%
560,105
51.86%
(Note that the capacity of the machine is 500 kgs per hour, so considering 9 hours of operation
per day, the maximum PET to be placed in process is 5,625 kilograms per day, or 25,000
kilograms per week, which is derived by dividing 500 by .8, which is the percentage of output per
PET processed and multiplied by the number of period.)
January
Produced Goods (in kilograms)
112 | P a g e
February to
December
38,400 per
month
JANUARY
1st week
2nd week
21.52
3rd week
21.52
4th week
21.52
301,335.65
516,575.40
TOTAL
21.52
21.52
817,911.06
Add: Purchases
301,335.65
215,239.75
301,335.65
215,239.75
1,033,150.81
301,335.65
516,575.40
817,911.06
1,033,150.81
1,033,150.81
Ending Inventory
301,335.65
516,575.40
817,911.06
1,033,150.81
1,033,150.81
FEBRUARY-DECEMBER 2016
1st week
2nd week
3rd week
4th week
TOTAL
21.52
21.52
21.52
21.52
21.52
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
301,335.65
215,239.75
301,335.65
215,239.75
1,033,150.81
1,334,486.46
1,248,390.56
1,334,486.46
1,248,390.56
2,066,301.62
301,335.65
215,239.75
301,335.65
215,239.75
1,033,150.81
Ending Inventory
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
JANUARY
FEBRUARY
21.52
MARCH
APRIL
MAY
JUNE
21.52
21.52
21.52
21.52
21.52
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
Add: Purchases
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
2,066,301.62
2,066,301.62
2,066,301.62
2,066,301.62
2,066,301.62
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
JULY
AUGUST
SEPTEMBER
OCTOBER
1,033,150.81 1,033,150.81
NOVEMBER
DECEMBER
21.52
21.52
21.52
21.52
21.52
21.52
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
Add: Purchases
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
2,066,301.62
2,066,301.62
2,066,301.62
2,066,301.62
2,066,301.62
2,066,301.62
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
Ending Inventory
113 | P a g e
2016
2017
21.52
2018
22.33
2019
23.16
2020
24.03
24.93
1,033,150.81
1,071,790.65
1,111,875.62
1,153,459.77
Add: Purchases
12,397,809.72
13,504,562.19
14,710,114.46
16,023,286.37
17,453,685.15
12,397,809.72
14,537,713.00
15,781,905.10
17,135,161.99
18,607,144.92
11,364,658.91
13,465,922.35
14,670,029.48
15,981,702.22
17,410,545.75
Ending Inventory
1,033,150.81
1,071,790.65
1,111,875.62
1,153,459.77
1,196,599.16
JANUARY FEBRUARY
MARCH
400
800
1,200
1,600
38,400
38,800
39,200
39,600
40,000
38,000
38,000
38,000
38,000
40,000
400
800
1,200
1,600
Produced Goods
38,400
AUGUST
SEPTEMBER
38,400
JUNE
JULY
38,400
MAY
(In Kilograms)
38,400
APRIL
Produced Goods
38,400
OCTOBER
NOVEMBER
38,400
DECEMBER
38,400
38,400
38,400
38,400
38,400
400
800
1,200
1,600
38,400
38,800
39,200
39,600
40,000
38,400
38,000
38,000
38,000
38,000
40,000
38,000
400
800
1,200
1,600
(In Kilograms)
Produced Goods
Work in Process Inventory, Beginning
Total Goods Placed in Process
Goods ready to be sold
Work in Process Inventory, End
114 | P a g e
2016
2017
2018
2019
2020
422,400
422,400
422,000
400
483,840
400
484,240
484,000
240
508,032
240
508,272
508,000
272
533,434
272
533,706
532,000
1,706
560,105
1,706
561,811
560,000
1,811
400
JANUARY
Cost of WIP
Work in Process,
beginning
Total Manufacturing
Costs
Total Cost of Goods
Placed in Process
Cost of Goods
Manufactured
Work in Process, end
FEBRUARY
39.37
115 | P a g e
MAY
JUNE
39.37
39.37
39.37
39.37
15,746.97
31,493.93
47,240.90
62,987.87
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
1,527,455.80
1,543,202.77
1,558,949.73
1,574,696.70
1,495,961.86
1,495,961.86
1,495,961.86
1,495,961.86
1,574,696.70
15,746.97
31,493.93
47,240.90
62,987.87
AUGUST
NOVEMBER
DECEMBER
39.37
39.37
39.37
39.37
15,746.97
31,493.93
47,240.90
62,987.87
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
1,527,455.80
1,543,202.77
1,558,949.73
1,574,696.70
1,511,708.83
1,495,961.86
1,495,961.86
1,495,961.86
1,495,961.86
1,574,696.70
1,495,961.86
15,746.97
31,493.93
47,240.90
62,987.87
SEPTEMBER
2017
39.37
OCTOBER
39.37
39.37
2016
Cost of WIP
Work in Process,
beginning
Total Manufacturing
Costs
Total Cost of Goods
Placed in Process
Cost of Goods
Manufactured
Work in Process, end
APRIL
JULY
Cost of WIP
Work in Process,
beginning
Total Manufacturing
Costs
Total Cost of Goods
Placed in Process
Cost of Goods
Manufactured
Work in Process, end
MARCH
2018
2019
15,746.97
2020
39.37
40.27
41.22
42.21
15,746.97
9,448.34
10,953.91
70,304.47
16,628,797.15
19,047,858.55
20,459,322.22
21,988,019.76
23,644,062.99
16,628,797.15
19,063,605.52
20,468,770.57
21,998,973.67
23,714,367.46
16,613,050.18
19,054,157.18
20,457,816.66
21,928,669.20
23,637,923.69
15,746.97
9,448.34
10,953.91
70,304.47
76,443.77
JANUARY FEBRUARY
MARCH
APRIL
MAY
JUNE
19
19
19
19
20
19
28
27
26
26
10
20
20
20
20
(In Sacks)
JULY
OCTOBER
NOVEMBER
19
19
19
19
20
19
25
24
23
22
22
21
20
20
20
20
20
20
AUGUST
(In Sacks)
2016
Cost of FGI
NOTES
JANUARY
2017
2018
2019
DECEMBER
2020
211
242
254
266
280
211
243
257
273
283
210
240
250
270
280
21
24
25
27
28
FEBRUARY
APRIL
MAY
JUNE
708,613.51
629,878.68
551,143.84
472,409.01
1,495,961.86
1,495,961.86
1,495,961.86
1,495,961.86
1,574,696.70
1,495,961.86
2,204,575.38
2,125,840.54
2,047,105.71
2,047,105.71
787,348.35
1,574,696.70
1,574,696.70
1,574,696.70
1,574,696.70
708,613.51
629,878.68
551,143.84
472,409.01
472,409.01
116 | P a g e
3.3
MARCH
SEPTEMBER
Cost of FGI
NOTES
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
472,409.01
393,674.17
314,939.34
236,204.50
157,469.67
157,469.67
1,495,961.86
1,495,961.86
1,495,961.86
1,495,961.86
1,574,696.70
1,495,961.86
1,968,370.87
1,889,636.04
1,810,901.20
1,732,166.37
1,732,166.37
1,653,431.53
1,574,696.70
1,574,696.70
1,574,696.70
1,574,696.70
1,574,696.70
1,574,696.70
393,674.17
314,939.34
236,204.50
157,469.67
157,469.67
78,734.83
3.3
Cost of FGI
NOTES
2016
2017
2019
2020
78,734.83
236,208.56
563,804.07
247,318.73
16,613,050.18
19,054,157.18
20,457,816.66
21,928,669.20
23,637,923.69
16,613,050.18
19,132,892.01
20,694,025.22
22,492,473.27
23,885,242.41
16,534,315.35
18,896,683.45
20,130,221.15
22,245,154.55
23,631,960.78
78,734.83
236,208.56
563,804.07
247,318.73
253,281.63
2018
3.3
42,000.00
Insurance - truck
18,000.00
TOTAL
60,000.00
Beginning
Insurance Expense
Prepaid Insurance-Building
117 | P a g e
JANUARY
FEBRUARY
42,000.00
38,500.00
MARCH
35,000.00
31,500.00
APRIL
28,000.00
MAY
24,500.00
JUNE
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
38,500.00
35,000.00
31,500.00
28,000.00
24,500.00
21,000.00
JULY
Beginning
Insurance Expense
Prepaid Insurance-Building
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
21,000.00
17,500.00
14,000.00
10,500.00
7,000.00
3,500
3,500.00
3,500.00
3,500.00
3,500.00
3,500.00
3,500
17,500.00
14,000.00
10,500.00
7,000.00
3,500.00
2016
2017
2018
2019
2020
Beginning
42,000
Insurance Expense
42,000
42,000
42,000
42,000
42,000
Prepaid Insurance-Building
Beginning
Insurance Expense
Prepaid Insurane-Truck
JANUARY
FEBRUARY
18,000.00
16,500.00
Insurance Expense
Prepaid Insurane-Truck
15,000.00
MAY
13,500.00
JUNE
12,000.00
10,500.00
1,500.00
1,500.00
1,500.00
1,500.00
1,500.00
1,500.00
15,000.00
13,500.00
12,000.00
10,500.00
9,000.00
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
9,000.00
7,500.00
6,000.00
4,500.00
3,000.00
1,500.00
1,500.00
1,500.00
1,500.00
1,500.00
1,500.00
1,500.00
7,500.00
6,000.00
4,500.00
3,000.00
1,500.00
2016
Beginning
Insurance Expense
Prepaid Insurane-Truck
118 | P a g e
APRIL
16,500.00
JULY
Beginning
MARCH
2017
-
18,000.00
-
2018
-
18,000.00
-
2019
-
18,000.00
-
2020
-
18,000.00
-
18,000.00
-
119 | P a g e
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
5.2
5,000,000.00
5,000,000.00
5,000,000.00
5,000,000.00
5,000,000.00
5,000,000.00
5.2
347,083.33
344,166.67
341,250.00
338,333.33
335,416.67
332,500.00
5.2
5,090,909.09
5,076,767.68
5,062,626.26
5,048,484.85
5,034,343.43
5,020,202.02
5.2
906,565.66
904,040.40
901,515.15
898,989.90
896,464.65
893,939.39
5.2
3,451,856.30
3,409,610.23
3,367,364.17
3,325,118.10
3,282,872.04
3,240,625.97
5.2
15,825.00
15,561.25
15,297.50
15,033.75
14,770.00
14,506.25
5.2
166,071.07
164,572.38
163,073.70
161,575.01
160,076.33
158,577.64
5.2
74,721.59
73,516.14
72,310.69
71,105.24
69,899.79
68,694.34
5.2
264,876.00
264,876.00
264,876.00
264,876.00
264,876.00
264,876.00
15,317,908.04
15,253,110.75
15,188,313.47
15,123,516.18
15,058,718.90
14,993,921.61
56,651.23
56,651.23
56,651.23
56,651.23
56,651.23
5,229.39
5,229.39
5,229.39
5,229.39
5,229.39
5,229.39
2,916.67
2,916.67
2,916.67
2,916.67
2,916.67
2,916.67
8,146.05
64,797.28
64,797.28
64,797.28
64,797.28
64,797.28
5.2
JULY
5,000,000.00
AUGUST
5,000,000.00
SEPTEMBER
5,000,000.00
OCTOBER
5,000,000.00
NOVEMBER
5,000,000.00
DECEMBER
5,000,000.00
5.2
329,583.33
326,666.67
323,750.00
320,833.33
317,916.67
315,000.00
5.2
5,006,060.61
4,991,919.19
4,977,777.78
4,963,636.36
4,949,494.95
4,935,353.54
5.2
891,414.14
888,888.89
886,363.64
883,838.38
881,313.13
878,787.88
5.2
3,198,379.91
3,156,133.84
3,113,887.78
3,071,641.71
3,029,395.64
2,987,149.58
5.2
14,242.50
13,978.75
13,715.00
13,451.25
13,187.50
12,923.75
5.2
157,078.96
155,580.27
154,081.59
152,582.90
151,084.22
149,585.53
5.2
67,488.89
264,876.00
14,929,124.33
66,283.43
264,876.00
14,864,327.05
65,077.98
264,876.00
14,799,529.76
63,872.53
264,876.00
14,734,732.48
62,667.08
264,876.00
14,669,935.19
61,461.63
264,876.00
14,605,137.91
56,651.23
56,651.23
56,651.23
56,651.23
56,651.23
56,651.23
5,229.39
5,229.39
5,229.39
5,229.39
5,229.39
5,229.39
2,916.67
2,916.67
2,916.67
2,916.67
2,916.67
2,916.67
64,797.28
64,797.28
64,797.28
64,797.28
64,797.28
64,797.28
NOTES
Land
Land
Improvements
Plant Building,
net
Office
Building,net
Factory
Equipment and
Machineries, net
Factory Furniture
and Fixtures, net
Office
Equipment,net
Office Furniture
and Fixtures,net
Website Cost
TOTAL
Depreciation
Expense-Plant
Depreciation
Expenseadministration
Depreciation
Expense-others
Total
Depreciation
120 | P a g e
5.2
5.2
2016
5,000,000.00
2017
5,000,000.00
2018
5,000,000.00
2019
5,000,000.00
2020
5,000,000.00
5.2
315,000.00
280,000.00
245,000.00
210,000.00
175,000.00
5.2
4,935,353.54
4,765,656.57
4,595,959.60
4,426,262.63
4,256,565.66
5.2
878,787.88
848,484.85
818,181.82
787,878.79
757,575.76
5.2
2,987,149.58
2,480,196.79
1,973,244.00
1,466,291.22
959,338.43
5.2
12,923.75
9,758.75
6,593.75
3,428.75
263.75
5.2
149,585.53
131,601.32
113,617.10
95,632.88
77,648.67
5.2
61,461.63
264,876.00
14,605,137.91
46,996.22
264,876.00
13,827,570.50
32,530.82
264,876.00
13,050,003.08
18,065.41
264,876.00
12,272,435.67
3,600.00
264,876.00
11,494,868.26
623,163.53
679,814.76
679,814.76
679,814.76
679,814.76
62,752.65
62,752.65
62,752.65
62,752.65
62,752.65
35,000.00
35,000.00
35,000.00
35,000.00
35,000.00
720,916.18
777,567.41
777,567.41
777,567.41
777,567.41
NOTES
Land
Land
Improvements
Plant Building,
net
Office
Building,net
Factory
Equipment and
Machineries, net
Factory Furniture
and Fixtures, net
Office
Equipment,net
Office Furniture
and Fixtures,net
Website Cost
TOTAL
Depreciation
Expense-Plant
Depreciation
Expenseadministration
Depreciation
Expense-others
Total
Depreciation
5.2
Note 5.1:
A. Land
The cost of land is 4,200,000 Php, plus other acquisition fees, estimated to be 800,000
Php, such as appraisal fee, special assessment fee, title acquisition fee, broker's fee and other fees
directly attributable to the acquisition of land. This gives a total of 5,000,000 Php as capitalizable
value of the land. The cost per unit of land is based on the price stated in Davao Real Estate
website.
121 | P a g e
3,000.00
Quantity
1,400.00
Total Cost
4,200,000.00
800,000.00
5,000,000.00
B. Land Improvements
The land improvements include the concreting of the parking space and other space
necessary for moving around the area.
Cost
Land Improvements
Useful Life
(years)
350,000
10
JANUARY
350,000.00
2,916.67
347,083.33
FEBRUARY
347,083.33
2,916.67
344,166.67
MARCH
344,166.67
2,916.67
341,250.00
APRIL
341,250.00
2,916.67
338,333.33
MAY
338,333.33
2,916.67
335,416.67
JUNE
335,416.67
2,916.67
332,500.00
JULY
332,500.00
2,916.67
329,583.33
AUGUST
329,583.33
2,916.67
326,666.67
SEPTEMBER
326,666.67
2,916.67
323,750.00
OCTOBER
323,750.00
2,916.67
320,833.33
NOVEMBER
320,833.33
2,916.67
317,916.67
DECEMBER
317,916.67
2,916.67
315,000.00
C. Building
The cost of building amounting to 5,000,000 Php is estimated according to the current
practice of estimation in the Engineering Department, based on the low cost construction of
commercial or industrial areas which is 7,500 Php per square meter. Further, the allocation of the
total cost of the building to plant and office building is based on their respective lot area, which
in this case is 560 square meters and 100 square meters respectively.
Cost
Building
Other construction costs
TOTAL
122 | P a g e
5,000,000.00
1,000,000.00
6,000,000.00
Useful Life
(years)
30
Plant Building
5,090,909.09
Office
Building
909,090.91
Total
6,000,000.00
123 | P a g e
JANUARY
5,090,909.09
5,090,909.09
FEBRUARY
5,090,909.09
14,141.41
5,076,767.68
MARCH
5,076,767.68
14,141.41
5,062,626.26
APRIL
5,062,626.26
14,141.41
5,048,484.85
MAY
5,048,484.85
14,141.41
5,034,343.43
JUNE
5,034,343.43
14,141.41
5,020,202.02
909,090.91
2,525.25
906,565.66
906,565.66
2,525.25
904,040.40
904,040.40
2,525.25
901,515.15
901,515.15
2,525.25
898,989.90
898,989.90
2,525.25
896,464.65
896,464.65
2,525.25
893,939.39
JULY
5,020,202.02
14,141.41
5,006,060.61
AUGUST
5,006,060.61
14,141.41
4,991,919.19
SEPTEMBER
4,991,919.19
14,141.41
4,977,777.78
OCTOBER
4,977,777.78
14,141.41
4,963,636.36
NOVEMBER
4,963,636.36
14,141.41
4,949,494.95
DECEMBER
4,949,494.95
14,141.41
4,935,353.54
893,939.39
2,525.25
891,414.14
891,414.14
2,525.25
888,888.89
888,888.89
2,525.25
886,363.64
886,363.64
2,525.25
883,838.38
883,838.38
2,525.25
881,313.13
881,313.13
2,525.25
878,787.88
Total Cost
Useful
Life
(years)
2,149,958.90
160,000.00
160,000.00
998,000.00
998,000.00
10
441.47
441.47
1,545.15
50
77,257.50
66,198.43
66,198.43
10
3,451,856.30
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
77,698.97
-
77,698.97
1,294.98
76,403.99
1,294.98
75,109.00
1,294.98
73,814.02
1,294.98
72,519.04
1,294.98
77,698.97
76,403.99
75,109.00
73,814.02
72,519.04
71,224.06
2,309,958.90
-
2,309,958.90
32,082.76
2,277,876.14
32,082.76
2,245,793.38
32,082.76
2,213,710.61
32,082.76
2,181,627.85
32,082.76
2,309,958.90
2,277,876.14
2,245,793.38
2,213,710.61
2,181,627.85
2,149,545.09
1,064,198.43
-
1,064,198.43
8,868.32
1,055,330.11
8,868.32
1,046,461.79
8,868.32
1,037,593.47
8,868.32
1,028,725.15
8,868.32
1,064,198.43
1,055,330.11
1,046,461.79
1,037,593.47
1,028,725.15
1,019,856.83
3,451,856.30
3,409,610.23
3,367,364.17
3,325,118.10
3,282,872.04
3,240,625.97
124 | P a g e
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
71,224
1,295
69,929
1,295
68,634
1,295
67,339
1,295
66,044
1,295
64,749
1,295
69,929
68,634
67,339
66,044
64,749
63,454
2,149,545
32,083
2,117,462
32,083
2,085,380
32,083
2,053,297
32,083
2,021,214
32,083
1,989,131
32,083
2,117,462
2,085,380
2,053,297
2,021,214
1,989,131
1,957,049
1,019,857
8,868
1,010,989
8,868
1,002,120
8,868
993,252
8,868
984,384
8,868
975,515
8,868
1,010,989
1,002,120
993,252
984,384
975,515
966,647
3,198,380
3,156,134
3,113,888
3,071,642
3,029,396
2,987,150
Qty
Total Cost
Useful
Life
(years)
5,000.00
10,000.00
233.00
25
5,825.00
15,825.00
Monthly computation of Factory Furniture and Fixtures according to useful life is shown
below. Yearly Projections are presented in Note 5.2: Lapsing Schedule.
125 | P a g e
JANUARY
Factory Furniture
and Fixtures, beg
Depreciation
Factory Furniture
and Fixtures, end
MARCH
APRIL
MAY
JUNE
15,825.00
-
15,825.00
263.75
15,561.25
263.75
15,297.50
263.75
15,033.75
263.75
14,770.00
263.75
15,825.00
15,561.25
15,297.50
15,033.75
14,770.00
14,506.25
JULY
Factory Furniture
and Fixtures, beg
Depreciation
Factory Furniture
and Fixtures, end
FEBRUARY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
14,506.25
263.75
14,242.50
263.75
13,978.75
263.75
13,715.00
263.75
13,451.25
263.75
13,187.50
263.75
14,242.50
13,978.75
13,715.00
13,451.25
13,187.50
12,923.75
F. Office Equipment
The breakdown of Office Equipment is shown below.
Computer
Ventilation (Air-conditioner)
Printer
Dispenser
Wall Mount Fan
White board
TOTAL Office Equipment
5
1
1
2
5
1
Useful
Total Cost
Life
114,950.00
10
27,148.00
15
4,000.00
5
9,596.00
5
7,725.75
5
4,150.00
10
167,569.75
126 | P a g e
JANUARY
21,321.75
355.36
20,966.39
FEBRUARY
20,966.39
355.36
20,611.03
MARCH
20,611.03
355.36
20,255.66
APRIL
20,255.66
355.36
19,900.30
MAY
19,900.30
355.36
19,544.94
JUNE
19,544.94
355.36
19,189.58
119,100.00
992.50
118,107.50
118,107.50
992.50
117,115.00
117,115.00
992.50
116,122.50
116,122.50
992.50
115,130.00
115,130.00
992.50
114,137.50
114,137.50
992.50
113,145.00
27,148.00
150.82
26,997.18
26,997.18
150.82
26,846.36
26,846.36
150.82
26,695.53
26,695.53
150.82
26,544.71
26,544.71
150.82
26,393.89
26,393.89
150.82
26,243.07
166,071.07
164,572.38
163,073.70
161,575.01
160,076.33
158,577.64
TOTAL OFFICE
EQUIPMENT
JULY
19,189.58
355.36
18,834.21
AUGUST
18,834.21
355.36
18,478.85
SEPTEMBER
18,478.85
355.36
18,123.49
OCTOBER
18,123.49
355.36
17,768.13
NOVEMBER
17,768.13
355.36
17,412.76
DECEMBER
17,412.76
355.36
17,057.40
113,145.00
992.50
112,152.50
112,152.50
992.50
111,160.00
111,160.00
992.50
110,167.50
110,167.50
992.50
109,175.00
109,175.00
992.50
108,182.50
108,182.50
992.50
107,190.00
26,243.07
150.82
26,092.24
26,092.24
150.82
25,941.42
25,941.42
150.82
25,790.60
25,790.60
150.82
25,639.78
25,639.78
150.82
25,488.96
25,488.96
150.82
25,338.13
157,078.96
155,580.27
154,081.59
152,582.90
151,084.22
149,585.53
TOTAL OFFICE
EQUIPMENT
127 | P a g e
Qty
Total Cost
Useful Life
Desks
882.94
16
14,127.04
Chairs
3,640.00
15
54,600.00
Cabinet
Total
7,200.00
7,200.00
10
75,927.04
Monthly computation of Office Furniture and Fixtures according to useful life is shown
below. Yearly Projections are presented in Note 5.2: Lapsing Schedule.
Useful life of 5 years
Office Furniture and Fixtures, beg
Depreciation
Office Furniture and Fixtures, end
JANUARY
68,727.04
1,145.45
67,581.59
FEBRUARY
67,581.59
1,145.45
66,436.14
MARCH
66,436.14
1,145.45
65,290.69
APRIL
65,290.69
1,145.45
64,145.24
MAY
64,145.24
1,145.45
62,999.79
JUNE
62,999.79
1,145.45
61,854.34
7,200.00
60.00
7,140.00
7,140.00
60.00
7,080.00
7,080.00
60.00
7,020.00
7,020.00
60.00
6,960.00
6,960.00
60.00
6,900.00
6,900.00
60.00
6,840.00
74,721.59
73,516.14
72,310.69
71,105.24
69,899.79
68,694.34
JULY
61,854.34
1,145.45
60,708.89
AUGUST
60,708.89
1,145.45
59,563.43
SEPTEMBER
59,563.43
1,145.45
58,417.98
OCTOBER
58,417.98
1,145.45
57,272.53
NOVEMBER
57,272.53
1,145.45
56,127.08
DECEMBER
56,127.08
1,145.45
54,981.63
6,840.00
60.00
6,780.00
6,780.00
60.00
6,720.00
6,720.00
60.00
6,660.00
6,660.00
60.00
6,600.00
6,600.00
60.00
6,540.00
6,540.00
60.00
6,480.00
67,488.89
66,283.43
65,077.98
63,872.53
62,667.08
61,461.63
H. Website Cost
The website development cost is based on the estimated basic website cost as stated in a
website developer, Executionist Company. The proponents assume that there will be no more
amortization cost for the website since the website is being maintained and updated as broken
down in the website maintenance expense. The website cost is 264,876 Php.
128 | P a g e
Cost of Asset
Land
Improvements
Plant Building
350,000.00
5,090,909.09
5,000,000.00
Additions:
Disposals:
Total:
Useful Life
Annual
Depreciation
5,000,000.00
Office
Building
909,090.91
77,698.97
2,309,958.90
1,064,198.43
3,451,856.30
350,000.00
10
5,090,909.09
30
909,090.91
30
77,698.97
5
2,309,958.90
6
1,064,198.43
10
3,451,856.30
35,000.00
169,696.97
30,303.03
15,539.79
384,993.15
106,419.84
506,952.79
Factory
Office Equipment
Office Furniture and Fixtures
Website Cost
Furniture and with useful life of with useful life of with useful life of
with useful life of with useful life of
Fixtures
5 years
10 years
15 years
TOTAL
5 years
10 years
TOTAL
15,825.00
21,321.75
119,100.00
27,148.00
167,569.75
68,727.04
7,200.00
75,927.04
264,876.00
Cost of Asset
Additions:
Disposals:
Total:
Useful Life
Annual
Depreciation
15,825.00
5
21,321.75
5
119,100.00
10
27,148.00
15
167,569.75
68,727.04
5
7,200.00
10
75,927.04
3,165.00
4,264.35
11,910.00
1,809.87
17,984.22
13,745.41
720.00
14,465.41
264,876.00
Presented in tables below are the yearly carrying values of PPE accounts.
Land
Improvements
Land
(Year 2016)
Cost of Asset
5,000,000.00
Annual Depreciation
Additions:
Disposal:
129 | P a g e
5,000,000.00
350,000.00
5,090,909.09
Factory
Factory
Office
Equipment and Furniture and Office Furniture and
Machineries
Fixtures
Equipment Fixtures
Website Cost
909,090.91
3,451,856.30
15,825.00 167,569.75
75,927.04
264,876.00
35,000.00
155,555.56
30,303.03
35,000.00
-
Plant Building
155,555.56
-
Office Building
30,303.03
-
464,706.72
464,706.72
-
35,000.00
155,555.56
30,303.03
464,706.72
315,000.00
4,935,353.54
878,787.88
2,987,149.58
2,901.25
2,901.25
2,901.25
17,984.22
17,984.22
-
14,465.41
14,465.41
-
17,984.22
14,465.41
12,923.75 149,585.53
61,461.63
TOTAL
15,326,054.09
720,916.18
720,916.18
720,916.18
264,876.00 14,605,137.91
Land
(Year 2017)
Cost of Asset
Annual Depreciation
Accumulated Depreciation, beg
Additions:
Disposal:
Accumulated Depreciation, end
Carrying Value, December 31,
2017
Land Improvements
Factory
Factory
Equipment and Furniture and Office Office Furniture and
Machineries
Fixtures Equipment
Fixtures
Office Building
Website Cost
TOTAL
5,000,000.00
-
315,000.00
35,000.00
35,000.00
35,000.00
70,000.00
4,935,353.54
169,696.97
155,555.56
169,696.97
325,252.53
878,787.88 2,987,149.58
30,303.03 506,952.79
30,303.03 464,706.72
30,303.03 506,952.79
60,606.06 971,659.51
12,923.75
3,165.00
2,901.25
3,165.00
6,066.25
149,585.53
17,984.22
17,984.22
17,984.22
35,968.43
61,461.63
14,465.41
14,465.41
14,465.41
28,930.82
264,876.00 14,605,137.91
777,567.41
777,567.41
777,567.41
5,000,000.00
280,000.00
4,765,656.57
848,484.85 2,480,196.79
9,758.75 131,601.32
46,996.22
264,876.00 13,827,570.50
Land
(Year 2018)
Cost of Asset
Plant Building
280,000.00
4,765,656.57
Factory
Factory
Equipment and Furniture and Office Office Furniture and
Machineries
Fixtures Equipment
Fixtures
848,484.85 2,480,196.79
9,758.75 131,601.32
46,996.22
Land Improvements
5,000,000.00
Plant Building
Office Building
Website Cost
264,876.00
Annual Depreciation
35,000.00
169,696.97
30,303.03
506,952.79
3,165.00
17,984.22
14,465.41
70,000.00
325,252.53
60,606.06
971,659.51
6,066.25
35,968.43
28,930.82
Additions:
35,000.00
169,696.97
30,303.03
506,952.79
3,165.00
17,984.22
14,465.41
Disposal:
5,000,000.00
Land
(Year 2019)
Cost of Asset
Annual Depreciation
Accumulated Depreciation, beg
Additions:
Disposal:
Accumulated Depreciation, end
Carrying Value, December 31,
2019
130 | P a g e
105,000.00
494,949.49
90,909.09
1,478,612.30
245,000.00
4,595,959.60
818,181.82
1,973,244.00
Land Improvements
Plant Building
Office Building
9,231.25
53,952.65
43,396.22
6,593.75 113,617.10
32,530.82
Factory
Factory
Equipment and Furniture and Office Office Furniture and
Machineries
Fixtures Equipment
Fixtures
TOTAL
13,827,570.50
777,567.41
777,567.41
777,567.41
264,876.00 13,050,003.08
Website Cost
TOTAL
5,000,000.00
-
245,000.00
35,000.00
105,000.00
35,000.00
140,000.00
4,595,959.60
169,696.97
494,949.49
169,696.97
664,646.46
818,181.82 1,973,244.00
30,303.03 506,952.79
90,909.09 1,478,612.30
30,303.03 506,952.79
121,212.12 1,985,565.08
6,593.75
3,165.00
9,231.25
3,165.00
12,396.25
113,617.10
17,984.22
53,952.65
17,984.22
71,936.87
32,530.82
14,465.41
43,396.22
14,465.41
57,861.63
264,876.00
-
13,050,003.08
777,567.41
777,567.41
777,567.41
5,000,000.00
210,000.00
4,426,262.63
787,878.79 1,466,291.22
3,428.75 95,632.88
18,065.41
264,876.00 12,272,435.67
Land
(Year 2020)
Cost of Asset
Annual Depreciation
Accumulated Depreciation, beg
Additions:
Disposal:
Accumulated Depreciation, end
Carrying Value, December 31,
2020
Land Improvements
Plant Building
Factory
Factory
Equipment and Furniture and Office Office Furniture and
Machineries
Fixtures Equipment
Fixtures
Office Building
5,000,000.00
-
210,000.00
35,000.00
140,000.00
35,000.00
175,000.00
4,426,262.63
169,696.97
664,646.46
169,696.97
834,343.43
787,878.79 1,466,291.22
30,303.03 506,952.79
121,212.12 1,985,565.08
30,303.03 506,952.79
151,515.15 2,492,517.87
5,000,000.00
175,000.00
4,256,565.66
757,575.76
959,338.43
3,428.75
3,165.00
12,396.25
3,165.00
15,561.25
Website Cost
TOTAL
95,632.88
17,984.22
71,936.87
17,984.22
89,921.08
18,065.41
14,465.41
57,861.63
14,465.41
72,327.04
264,876.00
-
12,272,435.67
777,567.41
777,567.41
777,567.41
263.75 77,648.67
3,600.00
264,876.00 11,494,868.26
JANUARY FEBRUARY
IS
249,391.88
NOTES
NET INCOME BEFORE TAX
JULY
IS
NOTES
NET INCOME BEFORE TAX
Deferred Tax Asset
131 | P a g e
MARCH
IS
63,989.79
AUGUST
70,807.43
APRIL
MAY
JUNE
(85,848.41)
(85,675.41) (236,024.76)
25,754.52
25,702.62
70,807.43
(85,956)
(85,675)
(236,025)
(85,848)
(85,675)
(236,025)
25,787
25,703
70,807
25,755
25,703
70,807
2016
2017
2018
2019
2020
(2,503,384)
(1,070,204)
(576,990)
233,802
803,190
751,015
321,061
173,097
70,141
240,957
Accounts Payable
SSS Payable
PHIC Payable
HDMF Payable
Taxes and Licenses Payable
Accrued Liabilities
TOTAL
AUGUST
SEPTEMBER OCTOBER NOVEMBER DECEMBER
NOTES JULY
516,575.40
516,575.40
516,575.40
516,575.40
516,575.40
516,575.40
6.1
6.2
14,251.54
14,251.54
14,251.54
14,251.54
14,251.54
14,251.54
6.3
6,039.73
6,039.73
6,039.73
6,039.73
6,039.73
6,039.73
6.4
3,658.64
3,658.64
3,658.64
3,658.64
3,658.64
3,658.64
49,505.49
49,505.49
199,854.84
49,505.49
49,505.49
199,854.84
6.5
159,515.66
159,515.66
159,515.66
159,515.66
159,515.66
159,515.66
6.6
749,546.46
749,546.46
899,895.81
749,546.46
749,546.46
899,895.81
Accounts Payable
SSS Payable
PHIC Payable
HDMF Payable
Taxes and Licenses Payable
Accrued Liabilities
TOTAL
132 | P a g e
NOTES
6.1
6.2
6.3
6.4
6.5
6.6
2016
516,575
14,252
6,040
3,659
199,855
159,516
899,897
2017
562,690
14,785
6,266
3,796
226,350
166,323
980,211
2018
612,921
15,338
6,500
3,938
242,616
172,888
1,054,201
2019
667,637
15,911
6,744
4,085
253,809
179,728
1,127,915
2020
727,237
16,506
6,996
4,238
312,278
186,858
1,254,113
NOTES
3.1.B.3
Accounts Payable
Purchases
Downpayment(50%)
516,575.40
516,575.40
516,575.40
133 | P a g e
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
NOTES JULY
3.1.B.3
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
516,575.40
516,575.40
Accounts Payable
Purchases
Downpayment(50%)
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
NOTES
3.1.B.3
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
516,575.40
516,575.40
1,033,150.81
516,575.40
516,575.40
2016
12,397,809.72
6,198,904.86
2017
13,504,562.19
6,752,281.09
2018
14,710,114.46
7,355,057.23
2019
16,023,286.37
8,011,643.19
2020
17,453,685.15
8,726,842.57
6,198,904.86
6,198,904.86
5,682,329.45
516,575.40
516,575.40
6,752,281.09
7,268,856.50
6,706,166.41
562,690.09
562,690.09
7,355,057.23
7,917,747.32
7,304,825.88
612,921.44
612,921.44
8,011,643.19
8,624,564.62
7,956,927.69
667,636.93
667,636.93
8,726,842.57
9,394,479.51
8,667,242.62
727,236.88
SSS Payable
Direct Labor
Indirect Labor
Administrative
TOTAL
SSS Payable
Direct Labor
Indirect Labor
Administrative
TOTAL
134 | P a g e
JANUARY
8,035.12
8,035.12
NOTES
9
10
15.1
NOTES
9
10
15.1
FEBRUARY
3,284.00
2,932.43
8,035.12
14,251.54
MARCH
3,284.00
2,932.43
8,035.12
14,251.54
APRIL
3,284.00
2,932.43
8,035.12
14,251.54
MAY
3,284.00
2,932.43
8,035.12
14,251.54
JUNE
3,284.00
2,932.43
8,035.12
14,251.54
JULY
AUGUST SEPTEMBER OCTOBER NOVEMBERDECEMBER
3,284.00
3,284.00
3,284.00
3,284.00
3,284.00
3,284.00
2,932.43
2,932.43
2,932.43
2,932.43
2,932.43
2,932.43
8,035.12
8,035.12
8,035.12
8,035.12
8,035.12
8,035.12
14,251.54
14,251.54
14,251.54
14,251.54
14,251.54
14,251.54
NOTES
9
10
15.1
2016
3,284.13
2,932.43
8,035.12
14,251.67
2017
3,406.95
3,042.10
8,335.63
14,784.68
2018
3,534.37
3,155.87
8,647.38
15,337.63
2019
3,666.56
3,273.90
8,970.79
15,911.26
2020
3,803.69
3,396.35
9,306.30
16,506.34
PHIC Payable
Direct Labor
Indirect Labor
Administrative
TOTAL
PHIC Payable
Direct Labor
Indirect Labor
Administrative
TOTAL
PHIC Payable
Direct Labor
Indirect Labor
Administrative
TOTAL
135 | P a g e
NOTES
9
10
15.1
NOTES
9
10
15.1
JANUARY
3,511.10
3,511.10
FEBRUARYMARCH
1,291.00
1,291.00
1,237.63
1,237.63
3,511.10
3,511.10
6,039.73
6,039.73
APRIL
1,291.00
1,237.63
3,511.10
6,039.73
MAY
1,291.00
1,237.63
3,511.10
6,039.73
JUNE
1,291.00
1,237.63
3,511.10
6,039.73
JULY
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,237.63
1,237.63
1,237.63
1,237.63
1,237.63
1,237.63
3,511.10
3,511.10
3,511.10
3,511.10
3,511.10
3,511.10
6,039.73
6,039.73
6,039.73
6,039.73
6,039.73
6,039.73
NOTES
9
10
15.1
2016
1,291.44
1,237.63
3,511.10
6,040.17
2017
1,339.74
1,283.92
3,642.41
6,266.07
2018
1,389.84
1,331.93
3,778.64
6,500.42
2019
1,441.82
1,381.75
3,919.96
6,743.53
2020
1,495.75
1,433.43
4,066.57
6,995.74
HDMF Payable
Direct Labor
Indirect Labor
Administrative
TOTAL
HDMF Payable
Direct Labor
Indirect Labor
Administrative
TOTAL
136 | P a g e
NOTES
9
10
15.1
NOTES
9
10
15.1
JANUARY
1,614.30
1,614.30
FEBRUARY
1,291.00
753.34
1,614.30
3,658.64
MARCH
1,291.00
753.34
1,614.30
3,658.64
APRIL
1,291.00
753.34
1,614.30
3,658.64
MAY
1,291.00
753.34
1,614.30
3,658.64
JUNE
1,291.00
753.34
1,614.30
3,658.64
JULY
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
753.34
753.34
753.34
753.34
753.34
753.34
1,614.30
1,614.30
1,614.30
1,614.30
1,614.30
1,614.30
3,658.64
3,658.64
3,658.64
3,658.64
3,658.64
3,658.64
NOTES
9
10
15.1
2016
1,291.44
753.34
1,614.30
3,659.08
2017
1,339.74
781.51
1,674.67
3,795.93
2018
1,389.84
810.74
1,737.31
3,937.89
2019
1,441.82
841.06
1,802.28
4,085.17
2020
1,495.75
872.52
1,869.69
4,237.96
APRIL
MAY
JUNE
NOTES JANUARY FEBRUARY MARCH
10
9,461.67
9,461.67 9,461.67 9,461.67
9,461.67
15
40,043.82
40,043.82
40,043.82 40,043.82 40,043.82
40,043.82
16
150,349.35
150,349.35
40,044
49,505
199,855
49,505
49,505
199,855
137 | P a g e
NOTES
10
15
16
2016
9,461.67
40,043.82
150,349.35
199,854.84
2017
9,815.54
41,541.46
174,993.36
226,350.36
2018
10,182.64
43,095.11
189,338.38
242,616.12
2019
10,563.47
44,706.86
198,539.06
253,809.39
2020
10,958.54
46,378.90
254,940.88
312,278.32
APRIL
MAY
JUNE
NOTES JANUARY FEBRUARY MARCH
11.1
147,889.19
147,889.19
147,889.19
147,889.19
147,889.19
11.2
8,184.79
8,184.79
8,184.79
8,184.79
8,184.79
8,184.79
15.2
3,441.68
3,441.68
3,441.68
3,441.68
3,441.68
3,441.68
11,626.47
159,515.66
159,515.66
159,515.66
159,515.66
159,515.66
Accrued Liabilities
Plant Utilities
Administrative Utilities
Telecommunications Expense
TOTAL
AUGUST
SEPTEMBER OCTOBER NOVEMBER DECEMBER
NOTES JULY
11.1
147,889.19
147,889.19
147,889.19
147,889.19
147,889.19
147,889.19
11.2
8,184.79
8,184.79
8,184.79
8,184.79
8,184.79
8,184.79
15.2
3,441.68
3,441.68
3,441.68
3,441.68
3,441.68
3,441.68
159,515.66
159,515.66
159,515.66
159,515.66
159,515.66
159,515.66
Accrued Liabilities
Plant Utilities
Administrative Utilities
Telecommunications Expense
TOTAL
138 | P a g e
11.1
11.2
15.2
2016
147,889.19
8,184.79
3,441.68
159,515.66
2017
154,262.09
8,490.90
3,570.40
166,323.39
2018
160,375.36
8,808.46
3,703.94
172,887.76
2019
166,747.97
9,137.90
3,842.46
179,728.33
2020
173,392.36
9,479.65
3,986.17
186,858.18
Note 8: Sales
Assumption: Sales price increases every year by 3.74% due to inflation. In addition,
80% of the raw materials are the companys main product which the PET flakes while 20% of it
are the scrap materials. Lastly, the basis of sales price of 45 Php is 3Php below the average
selling price of the foreign competitors. Since the companys start of operations will still be on
2016, 45 Php will be affected by the inflation for two years.
Company
Beijing Ou Yuan Sheng Fa Plastic Proucts Co. Ltd
Shijiazhuang Aojie Trading Co., Ltd
Shijiazhuang Refining an Plastic Trading Co., Ltd
Lanzhou Qianmiaonuo
Average Price
Selling Price Used
NOTES JULY
3.3
139 | P a g e
AUGUST
50,000
40,000
48.43
1,937,157.77
NOTES
3.3
48,000
40,000
48.43
1,937,157.77
2016
422,000
420,000
48
20,340,157
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
46,000
44,000
44,000
42,000
40,000
40,000
40,000
40,000
48.43
48.43
48.43
48.43
1,937,157.77
1,937,157.77
1,937,157.77
1,937,157.77
2017
486,000
480,000
50
24,115,290
2018
514,000
500,000
52
26,059,585
2019
546,000
540,000
54
29,196,950
2020
566,000
560,000
56
31,410,728
NOTES
JULY
8.61
9,600
82,652.06
Sales Price-Scrap
PVC scrap-Sales (in Kilograms)
PVC scrap-Sales (in Peso)
Sales Price-Scrap
PVC scrap-Sales (in Kilograms)
PVC scrap-Sales (in Peso)
NOTES
Sales Price-Scrap
PVC scrap-Sales (in Kilograms)
PVC scrap-Sales (in Peso)
140 | P a g e
2016
9
105,600
909,173
2017
9
120,960
1,080,365
2018
9
127,008
1,176,809
2019
10
133,358
1,281,863
2020
10
140,026
1,396,295
Gross Pay
SSS
PHIC
HDMF
Net Pay (with 13th month)
Gross Pay
SSS
PHIC
HDMF
Net Pay (with 13th month)
141 | P a g e
APRIL
94,940.10
3,284.00
1,291.00
1,291.00
89,074.10
MAY
94,940.10
3,284.00
1,291.00
1,291.00
89,074.10
JUNE
94,940.10
3,284.00
1,291.00
1,291.00
89,074.10
JULY
AUGUST
SEPTEMBEROCTOBER NOVEMBERDECEMBER
94,940.10
94,940.10
94,940.10
94,940.10
94,940.10
94,940.10
3,284.00
3,284.00
3,284.00
3,284.00
3,284.00
3,284.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
1,291.00
89,074.10
89,074.10
89,074.10
89,074.10
89,074.10
89,074.10
2016
1,044,341
39,410
15,497
15,497
973,937
2017
1,142,559
40,883
16,077
16,077
1,010,362
2018
1,185,291
42,412
16,678
16,678
1,048,150
2019
1,229,620
43,999
17,302
17,302
1,087,351
2020
1,275,608
45,644
17,949
17,949
1,128,018
Gross Pay
SSS
PHIC
HDMF
Withholding Tax
Net Pay (with 13th month)
Gross Pay
SSS
PHIC
HDMF
Withholding Tax
Net Pay (with 13th month)
142 | P a g e
JULY
101,599.62
2,932.43
1,237.63
753.34
9,461.67
87,214.56
AUGUST SEPTEMBER
101,599.62
101,599.62
2,932.43
2,932.43
1,237.63
1,237.63
753.34
753.34
9,461.67
9,461.67
87,214.56
87,214.56
2016
1,117,596
35,189
14,852
9,040
113,540
944,975
2017
1,159,394
36,505
15,407
9,378
117,786
980,317
2018
1,202,755
37,870
15,983
9,729
122,192
1,016,981
2019
1,247,738
39,287
16,581
10,093
126,762
1,055,016
2020
1,294,404
40,756
17,201
10,470
131,503
1,094,474
Consumption
19,902
19,902
19,902
19,902
19,902
19,902
19,902
19,902
19,902
19,902
19,902
19,902
238,829
Year 1
125,033
125,033
125,033
125,033
125,033
125,033
125,033
125,033
125,033
125,033
125,033
125,033
1,500,397
The amount shown below is based on the table above which is to be inflated for two
years.
Plant Facility - Electricity Consumption
143 | P a g e
January February
136,400
March
136,400
April
136,400
May
136,400
June
136,400
July
August
September October
November
December
136,399.69 136,399.69 136,399.69 136,399.69 136,399.69
136,399.69
2016
1,500,396.62
2017
1,556,511.45
2018
1,614,724.98
2019
1,675,115.70
2020
1,737,765.02
The table below shows the computation of Plant facility water consumption.
January
Price-Variable
Price- Fixed
Consumption
TOTAL
July
77.49
5,910.48
72
11,489.50
Price-Variable
Price- Fixed
Consumption
TOTAL
February
March
April
May
June
77.49
77.49
77.49
77.49
77.49
5,910.48
5,910.48
5,910.48
5,910.48
5,910.48
72
72
72
72
72
11,489.50
11,489.50
11,489.50
11,489.50
11,489.50
August
77.49
5,910.48
72
11,489.50
2016
77.49
65,015.32
792
126,384.48
Price-Variable
Price- Fixed
Consumption
TOTAL
September
77.49
5,910.48
72
11,489.50
2017
80.38
67,446.89
907
140,371.53
October
77.49
5,910.48
72
11,489.50
2018
83.39
69,969.41
953
149,404.02
November
77.49
5,910.48
72
11,489.50
2019
86.51
72,586.26
1,000
159,112.01
December
77.49
5,910.48
72
11,489.50
2020
89.74
75,300.99
1,050
169,550.89
February
March
April
May
June
July
August
September October November December
147,889.19 147,889 147,889 147,889 147,889 147,889 147,889 147,889 147,889 147,889 147,889
2016
1,626,781
144 | P a g e
2017
1,696,883
2018
1,764,129
2019
1,834,228
2020
1,907,316
Consumption
33
33
33
33
33
33
33
33
33
33
33
33
396
Year 1
2,557.05
2,557.05
2,557.05
2,557.05
2,557.05
2,557.05
2,557.05
2,557.05
2,557.05
2,557.05
2,557.05
2,557.05
30,684.58
The amount shown below is based on the table above which is to be inflated for two years.
Administrative-Water Expense
2016
46,181.84
2017
47,909.04
2018
49,700.84
2019
51,559.65
2020
53,487.98
The table below shows the computation of Administrative facility water consumption.
Administrative Facilities - Electricity Consumption
Month
Consumption
Year 1
January
690.24
4,336.30
February
690.24
4,336.30
March
690.24
4,336.30
April
690.24
4,336.30
May
690.24
4,336.30
June
690.24
4,336.30
July
690.24
4,336.30
August
690.24
4,336.30
September
690.24
4,336.30
October
690.24
4,336.30
November
690.24
4,336.30
December
690.24
4,336.30
TOTAL
8,282.88
52,035.62
145 | P a g e
Administrative-Electricity Expense
January
February March
April
May
June
4,336.30
4,336.30
4,336.30
4,336.30
4,336.30
4,336.30
Administrative-Electricity Expense
July
August
September October
November December
4,336.30
4,336.30
4,336.30
4,336.30
4,336.30
4,336.30
2016
52,035.62
Administrative-Electricity Expense
2017
53,981.75
2018
56,000.67
2019
58,095.10
2020
60,267.85
2016
98,217
2017
101,891
2018
105,702
2019
109,655
2020
113,756
146 | P a g e
February
March
April
May
June
9,256.20
9,256.20
9,256.20
9,256.20
9,256.20
62,761.02
62,761.02
62,761.02
62,761.02
62,761.02
72,017.22
72,017.22
72,017.22
72,017.22
72,017.22
3,440.51
3,440.51
3,440.51
3,440.51
3,440.51
3,440.51
February
March
April
May
June
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
August
September
October
November
December
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
2016
2017
2018
2019
2020
55,000
60,500
66,550
73,205
80,526
July
Miscellaneuos Factory Expenses
MARCH
APRIL
MAY
JUNE
Transportation Cost
5,380.99
10,761.99
10,761.99
10,761.99
10,761.99
Shipping Fee
47,510.95
95,021.89
95,021.89
95,021.89
95,021.89
Legal Fees
Website Maintenance
Expense
B
Marketing Website
Online Expense
C
Traveling and
Transportation Expense D
TOTAL SELLING
EXPENSES
714.70
1,429.40
1,429.40
1,429.40
1,429.40
1,227.37
1,227.37
1,227.37
1,227.37
1,227.37
1,227.37
35,633.21
35,633.21
35,633.21
35,633.21
35,633.21
35,633.21
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
86,860.58
140,467.22
194,073.86
194,073.86
194,073.86
194,073.86
147 | P a g e
NOTES
Freight-out
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
Transportation Cost
10,761.99
10,761.99
10,761.99
10,761.99
10,761.99
10,761.99
Shipping Fee
95,021.89
95,021.89
95,021.89
95,021.89
95,021.89
95,021.89
1,429.40
1,429.40
1,429.40
1,429.40
1,429.40
1,429.40
1,227.37
1,227.37
1,227.37
1,227.37
1,227.37
1,227.37
35,633.21
35,633.21
35,633.21
35,633.21
35,633.21
35,633.21
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
194,073.86
194,073.86
194,073.86
194,073.86
194,073.86
194,073.86
Legal Fees
Website Maintenance
Expense
B
Marketing Website
Online Expense
C
Traveling and
Transportation Expense D
TOTAL SELLING
EXPENSES
NOTES
Freight-out
2016
2017
2018
2019
2020
Transportation Cost
113,000.87
133,973.83
138,984.45
144,182.47
149,574.90
Shipping Fee
997,729.88
1,140,262.72
1,140,262.72
1,140,262.72
1,140,262.72
15,008.70
17,152.80
17,152.80
17,152.80
17,152.80
14,728.39
15,279.24
15,850.68
16,443.49
17,058.48
427,598.52
443,590.70
460,181.00
477,391.77
495,246.22
600,000.00
660,000.00
726,000.00
798,600.00
878,460.00
2,168,066.36
2,410,259.29
2,498,431.65
2,594,033.25
2,697,755.11
Legal Fees
Website Maintenance
Expense
B
Marketing Website
Online Expense
C
Traveling and
Transportation Expense D
TOTAL SELLING
EXPENSES
A. Freight-Out
Freight-Out is composed of Transportation Cost, Shipping Fee, and Legal Fees.
Presented below are the computations of these expenses.
Transportation Cost
Transportation cost signifies the transportation from the plant (Panacan) to Sasa wharf,
which is 5,000 Php per travel. The company will outsource trucking services; therefore the
amount of the cost is inclusive of wages for the driver and helper, fuel and any other related
costs. The number of travel depends on the number of sack to be shipped. The container van that
will transport the products to the wharf has a capacity of 20,000 kgs or 20 tons and each sack
contain 2000 kgs, so the maximum capacity of the truck is 10 sacks. The increase per year is due
to inflation rate.
148 | P a g e
Transportation Cost
Notes
January
February
0
***
Transportation Cost
Notes
20
20
20
5,380.99
5,380.99
5,380.99
5,380.99
10,761.99
5,380.99
10,761.99
5,380.99
10,761.99
5,380.99
10,761.99
July
August
Transportation Cost
Notes
8.1
Number of Shipment
Cost per Shipment
Total Transportation Cost
***Basis of Cost
149 | P a g e
***
September
October
November
December
20
20
20
20
20
20
5,380.99
10,761.99
5,380.99
10,761.99
5,380.99
10,761.99
5,380.99
10,761.99
5,380.99
10,761.99
5,380.99
10,761.99
8.1
***
June
20
Number of Shipment
Cost per Shipment
May
April
10
8.1
Number of Shipment
Cost per Shipment
March
2016
2017
210
2018
240
2019
250
2020
270
280
21
24
25
27
28
5,380.99
5,582.24
5,791.02
6,007.60
6,232.29
113,000.87
133,973.83
138,984.45
144,182.47
149,574.90
Shipping Cost
Shipping cost is 44,147 Php per container van, which the information is based on
shipping equipment from China. Container van contains 10 sacks of 2,000-kilogram PET flakes.
Shipping Cost
Number of Sacks to
be shipped
NOTES
Shipping Cost
NOTES
Number of Sacks to be
shipped
8.1
Number of Shipment
Shipping cost
Total Shipping Cost
150 | P a g e
8.1
JUNE
47,510.95
47,510.95
47,510.95
95,021.89
47,510.95
95,021.89
47,510.95
95,021.89
47,510.95
95,021.89
JULY
AUGUST
20
20
MAY
47,510.95
47,510.95
95,021.89
NOTES
APRIL
10
SEPTEMBER
20
Number of Shipment
Shipping cost
Total Shipping Cost
MARCH
8.1
Number of Shipment
Shipping cost
Total Shipping Cost
Shipping Cost
Number of Sacks to be
shipped
JANUARY FEBRUARY
2016
21
24
NOVEMBER
25
DECEMBER
20
2
47,510.95
95,021.89
2019
250
20
20
2
47,510.95
95,021.89
2018
240
20
20
2
47,510.95
95,021.89
2017
210
OCTOBER
20
2
47,510.95
95,021.89
20
2
47,510.95
95,021.89
2020
270
27
280
28
47,510.95
47,510.95
47,510.95
47,510.95
47,510.95
997,729.88
1,140,262.72
1,140,262.72
1,140,262.72
1,140,262.72
Legal Fees
Legal Fees
COST
(PhilExport-XI)
Processing Fee
200.00
(Bureau of Customs)
Documentation, stamp
processing, examination,
stuffing, weighing,
authority to load
Post-Loading (upon
request)
115.00
25.00
Certificate of Shipment
(Philipping Ports
Authority)
115.00
Wharfage/Storage Fees
259.70
714.70
TOTAL
Notes
Number of sacks to be shipped
February
January
8.1
10
714.70
714.70
714.70
Notes
Number of sacks to be shipped
8.1
Notes
Number of sacks to be shipped
Legal Fees per Shipment
Total Legal Fees
151 | P a g e
8.1
March
April
May
June
20
714.70
1,429.40
20
714.70
1,429.40
20
714.70
1,429.40
20
714.70
1,429.40
September
October
November December
July
August
20
714.70
1,429.40
20
20
20
20
20
714.70
1,429.40
714.70
1,429.40
714.70
1,429.40
714.70
1,429.40
714.70
1,429.40
2016
2017
2018
2019
2020
210
240
250
270
280
714.70
714.70
714.70
714.70
714.70
15,008.70
17,152.80
17,152.80
17,152.80
17,152.80
Domain Name
441.47
Hosting
2,207.35
Website maintenance
TOTAL
11,036.75
14,728.39
The table below shows the Website Maintenance Expense with the consideration of
inflation rate. (Inflation rate = 3.74%)
Cost per Year
2016
14,728.39
2017
15,279.24
2018
15,850.68
2019
16,443.49
2020
17,058.48
35,633.21
The table below shows the MWOE with the consideration of inflation rate. (Inflation rate
= 3.74%)
MWOE
152 | P a g e
2016
427,598.52
2017
443,590.70
2018
460,181.00
2019
477,391.77
2020
495,246.22
50,000.00
The table below shows the Traveling and Transportation Expense with the consideration
of inflation rate. (Inflation rate = 3.74%)
Traveling and
Transportation
Expense
2016
2017
2018
2019
2020
600,000.00
660,000.00
726,000.00
798,600.00
878,460.00
153 | P a g e
Notes
January
February
March
April
May
308,098.66
308,098.66
308,098.66
308,098.66
8,184.79
8,184.79
8,184.79
8,184.79
8,184.79
5,434.00
1,903.00
1,903.00
2,076.00
1,903.00
1,903.00
15.3
3,441.68
3,441.68
3,441.68
3,441.68
3,441.68
3,441.68
Depreciation Expense
15.4
5,229.39
5,229.39
5,229.39
5,229.39
5,229.39
5,229.39
12
3,440.51
3,440.51
3,440.51
3,440.51
3,440.51
3,440.51
333,829.02
330,298.02
330,298.02
330,471.02
330,298.02
330,298.02
15.1
308,098.66
308,098.66
Utilities Expense
11.2
8,184.79
15.2
TOTAL
Notes
July
August
September
October
November
June
December
15.1
308,098.66
308,098.66
308,098.66
308,098.66
308,098.66
308,098.66
Utilities Expense
11.2
8,184.79
8,184.79
8,184.79
8,184.79
8,184.79
8,184.79
15.2
2,184.00
1,903.00
1,903.00
2,076.00
1,903.00
1,903.00
15.3
3,441.68
3,441.68
3,441.68
3,441.68
3,441.68
3,441.68
Depreciation Expense
15.4
5,229.39
5,229.39
5,229.39
5,229.39
5,229.39
5,229.39
12
3,440.51
3,440.51
3,440.51
3,440.51
3,440.51
3,440.51
330,579.02
330,298.02
330,298.02
330,471.02
330,298.02
330,298.02
TOTAL
Notes
2016
2017
2018
2019
2020
15.1
3,697,183.87
3,835,458.55
3,978,904.70
4,127,715.74
4,282,092.31
Utilities Expense
11.2
98,217.46
101,890.80
105,701.51
109,654.75
113,755.84
15.2
26,994.00
24,397.57
25,310.04
26,256.64
27,238.64
15.3
41,300.20
42,844.83
44,447.23
46,109.55
47,834.05
Depreciation Expense
15.4
62,752.65
62,752.65
62,752.65
62,752.65
62,752.65
12
TOTAL
154 | P a g e
41,286.07
53,537.71
72,202.02
101,118.21
146,860.04
3,967,734.26
4,120,882.11
4,289,318.16
4,473,607.54
4,680,533.53
Regular Pay
Qty
Total
Gross Pay
Managing Partner
40,000.00
40,000.00 -
40,000.00
Internal Auditor
30,000.00
30,000.00 -
30,000.00
Cost Accountant
25,000.00
25,000.00 -
25,000.00
20,000.00
20,000.00 -
20,000.00
20,000.00
20,000.00 -
20,000.00
Bookkeeper
10,000.00
20,000.00 -
20,000.00
Treasurer
15,000.00
15,000.00 -
15,000.00
Marketing Analyst
20,000.00
20,000.00 -
20,000.00
15,000.00
15,000.00 -
15,000.00
Inventory/Supply Analyst
15,000.00
15,000.00 -
15,000.00
15,000.00
15,000.00 -
15,000.00
15,000.00
15,000.00 -
15,000.00
Security Guard 1
6,786.00
6,786.00
4 -
Security Guard 2
6,786.00
6,786.00
6,981.00
7
Total
7,281.30
264,262.30
Position
DEDUCTIONS
WHT
SSS
PHIC
HDMF
Total Deductions
Net Pay
Per Person
Managing Partner
8,666.67
581.30
437.50
100.00
9,785.47
30,214.53
30,214.53
Internal Auditor
5,666.67
581.30
375.00
100.00
6,722.97
23,277.03
23,277.03
Cost Accountant
4,166.67
581.30
312.50
100.00
5,160.47
19,839.53
19,839.53
2,916.75
581.30
250.00
100.00
3,848.05
16,151.95
16,151.95
2,916.75
581.30
250.00
100.00
3,848.05
16,151.95
16,151.95
Bookkeeper
1,416.66
726.60
250.00
200.00
2,593.26
17,406.74
8,703.37
Treasurer
1,708.33
545.00
187.50
100.00
2,540.83
12,459.17
12,459.17
Marketing Analyst
2,916.75
581.30
250.00
100.00
3,848.05
16,151.95
16,151.95
1,708.33
545.00
187.50
100.00
2,540.83
12,459.17
12,459.17
Inventory/Supply Analyst
1,708.33
545.00
187.50
100.00
2,540.83
12,459.17
12,459.17
1,708.33
545.00
187.50
100.00
2,540.83
12,459.17
12,459.17
1,708.33
545.00
187.50
100.00
2,540.83
12,459.17
12,459.17
Security Guard 1
254.30
100.00
100.00
454.30
6,526.70
6,526.70
Security Guard 2
272.50
100.00
100.00
472.50
6,808.80
6,808.80
7,466.20
3,262.50
1,500.00
49,437.27
214,825.03
Total
155 | P a g e
37,208.57
With Inflation
Gross Pay
308,098.66
Withholding Tax
40,043.82
SSS
8,035.12
PHIC
3,511.10
HDMF
1,614.30
294,938.14
The table below shoes the yearly computation of Salaries and Wages Administrative,
with inflation rate.
Assumption: The 13th month pay is to be paid 50% on June and 50% on December.
Gross Pay
Withholding Tax
SSS
PHIC
HDMF
Net Pay (with 13th month)
156 | P a g e
2016
3,697,183.87
480,525.80
96,421.38
42,133.18
19,371.58
3,539,257.73
2017
3,835,458.55
498,497.47
100,027.54
43,708.96
20,096.07
3,671,625.97
2018
3,978,904.70
517,141.27
103,768.57
45,343.68
20,847.67
3,808,944.78
2019
4,127,715.74
536,482.36
107,649.52
47,039.53
21,627.37
3,951,399.32
2020
4,282,092.31
556,546.80
111,675.61
48,798.81
22,436.23
4,099,181.65
FEBRUARY
MARCH
APRIL
MAY
JUNE
Ballpen
470.00
470.00
Ink
150.00
297.00
297.00
297.00
297.00
Marker
108.00
Bond paper
324.00
324.00
324.00
324.00
324.00
324.00
Folder
400.00
400.00
400.00
400.00
400.00
400.00
Envelope
200.00
200.00
200.00
200.00
200.00
200.00
Puncher
145.00
Fastener
32.00
32.00
32.00
32.00
32.00
32.00
Calculator
575.00
Tissue
150.00
150.00
150.00
150.00
150.00
150.00
Water
300.00
300.00
300.00
300.00
300.00
300.00
Glass Set
60.00
Cup Set
80.00
Pail
60.00
Dippper
30.00
Receipts
1,750.00
Columnar Books
400.00
Other Supplies^
200.00
200.00
200.00
200.00
200.00
200.00
5,434.00
1,903.00
1,903.00
2,076.00
1,903.00
1,903.00
5,434.00
1,903.00
1,903.00
2,076.00
1,903.00
1,903.00
157 | P a g e
JULY
Ballpen
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
470.00
470.00
297.00
297.00
297.00
297.00
Marker
108.00
Bond paper
324.00
324.00
324.00
324.00
324.00
324.00
Folder
400.00
400.00
400.00
400.00
400.00
400.00
Ink
Envelope
Puncher
200.00
Fastener
Calculator
200.00
200.00
-
32.00
32.00
200.00
-
32.00
-
200.00
-
32.00
-
200.00
-
32.00
-
32.00
-
Tissue
150.00
150.00
150.00
150.00
150.00
150.00
Water
300.00
300.00
300.00
300.00
300.00
300.00
Glass Set
Cup Set
Pail
Dippper
Receipts
Columnar Books
Other Supplies^
TOTAL OFFICE SUPPLIES EXPENSE
TOTAL with inflation (3.74% )
200.00
200.00
200.00
200.00
200.00
200.00
2,184.00
1,903.00
1,903.00
2,076.00
1,903.00
1,903.00
2,184.00
1,903.00
1,903.00
2,076.00
1,903.00
1,903.00
2016
Ballpen
1,880.00
Ink
2,526.00
2017
2018
1,880.00
2019
1,880.00
2020
1,880.00
1,880.00
216.00
216.00
216.00
216.00
216.00
Bond paper
3,888.00
3,888.00
3,888.00
3,888.00
3,888.00
Folder
4,800.00
4,800.00
4,800.00
4,800.00
4,800.00
Envelope
2,400.00
2,400.00
Marker
Puncher
145.00
Fastener
384.00
384.00
Calculator
575.00
2,400.00
-
2,400.00
-
384.00
-
2,400.00
-
384.00
-
384.00
-
Tissue
1,800.00
1,800.00
1,800.00
1,800.00
1,800.00
Water
3,600.00
3,600.00
3,600.00
3,600.00
3,600.00
Glass Set
60.00
Cup Set
80.00
Pail
60.00
Dippper
30.00
Receipts
1,750.00
1,750.00
1,750.00
1,750.00
1,750.00
400.00
400.00
400.00
400.00
400.00
Columnar Books
Other Supplies^
TOTAL OFFICE SUPPLIES EXPENSE
TOTAL with inflation (3.74% )
158 | P a g e
2,400.00
2,400.00
2,400.00
2,400.00
2,400.00
26,994.00
23,518.00
23,518.00
23,518.00
23,518.00
26,994.00
24,397.57
25,310.04
26,256.64
27,238.64
35,633.21
Telecommunications Expense
2017
42,844.83
2018
44,447.23
2019
46,109.55
2020
47,834.05
January
Insurance Expense
16.1
10,000.00
Start up Expenses
16.2
394,200.00
5.1.B
TOTAL
Notes
Insurance Expense
16.1
Start up Expenses
Depreciation of Land Improvement
TOTAL
159 | P a g e
3,500.00
February
3,500.00
-
March
3,500.00
150,349.35
April
May
3,500.00
3,500.00
June
3,500.00
150,349.35
2,916.67
2,916.67
2,916.67
2,916.67
2,916.67
2,916.67
410,616.67
6,416.67
156,766.02
6,416.67
6,416.67
156,766.02
July
August
September
October
November
December
3,500.00
-
3,500.00
-
3,500.00
150,349.35
3,500.00
-
3,500.00
-
3,500.00
150,349.35
16.2
5.1.B
2,916.67
2,916.67
2,916.67
2,916.67
2,916.67
2,916.67
6,416.67
6,416.67
156,766.02
6,416.67
6,416.67
156,766.02
Notes
2016
2017
2018
2019
2020
Insurance Expense
42,000.00
42,000.00
42,000.00
42,000.00
42,000.00
16.1
611,397.40
761,033.45
818,413.51
855,216.23
916,583.51
Start up Expenses
16.2
394,200.00
5.1.B
TOTAL
35,000.00
35,000.00
35,000.00
35,000.00
35,000.00
1,082,597.40
838,033.45
895,413.51
932,216.23
993,583.51
160 | P a g e
2016
2017
-
2018
2019
2020
51,060.00
51,060.00
51,060.00
51,060.00
461,397.40
559,973.45
617,353.51
654,156.23
715,523.51
140,000.00
140,000.00
140,000.00
140,000.00
140,000.00
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
611,397.40
761,033.45
818,413.51
855,216.23
916,583.51
100.00
50.00
10,500.00
300.00
Garbage Fee
3,000.00
Electrical Fee
1,000.00
500.00
50.00
Laboratory Fee
100.00
1,000.00
15,000.00
Plumbing Fee
100.00
200.00
600.00
Zoning Fee
300.00
License Plate
150.00
Tax Clearance
50.00
300.00
33,150.00
500.00
Certification Fee*****
200.00
15.00
1,750.00
400.00
10,500.00
Other Expenses
4,395.00
51,060.00
2,500,000.00
4,500,000.00
161 | P a g e
715.00
7,000,000.00
250,000.00
50,000.00
94,200.00
394,200.00
February
March
April
May
June
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 2
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 3
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 4
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 5
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 6
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
TOTAL
(581,914.39)
(149,309.51)
(165,217.33)
(60,093.89)
(59,972.79)
(165,217.33)
July
August
September
October
November
December
(10,028.25)
(9,995.46)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 2
(10,028.25)
(9,995.46)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 3
(10,028.25)
(9,995.46)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 4
(10,028.25)
(9,995.46)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 5
(10,028.25)
(9,995.46)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
Partner 6
(10,028.25)
(9,995.46)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
TOTAL
(60,169.49)
(59,972.79)
(165,217.33)
(60,093.89)
(59,972.79)
(165,217.33)
162 | P a g e
2016
2017
2018
2019
2020
(292,061.48)
(124,857.10)
(67,315.55)
38,966.96
133,864.99
Partner 2
(292,061.48)
(124,857.10)
(67,315.55)
38,966.96
133,864.99
Partner 3
(292,061.48)
(124,857.10)
(67,315.55)
38,966.96
133,864.99
Partner 4
(292,061.48)
(124,857.10)
(67,315.55)
38,966.96
133,864.99
Partner 5
(292,061.48)
(124,857.10)
(67,315.55)
38,966.96
133,864.99
Partner 6
(292,061.48)
(124,857.10)
(67,315.55)
38,966.96
133,864.99
TOTAL
(1,752,368.87)
(749,142.59)
(403,893.32)
233,801.73
803,189.93
February
March
April
May
June
Withdrawal
Partner 1
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 2
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 3
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 4
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 5
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 6
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
120,000.00
120,000.00
120,000.00
120,000.00
120,000.00
120,000.00
July
August
September
October
November
December
TOTAL
Withdrawal
Partner 1
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 2
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 3
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 4
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 5
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Partner 6
TOTAL
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
120,000.00
120,000.00
120,000.00
120,000.00
120,000.00
120,000.00
2016
2017
2018
2019
2020
Withdrawal
Partner 1
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
Partner 2
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
Partner 3
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
Partner 4
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
Partner 5
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
Partner 6
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
1,440,000.00
1,440,000.00
1,440,000.00
1,440,000.00
1,440,000.00
TOTAL
163 | P a g e
February
March
April
May
June
4,000,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
Changes in Equity
Partner 1 Equity, Beginning
Add: Net Income (Loss) Share
Total
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
3,903,014.27
3,858,129.35
3,810,593.13
3,780,577.48
3,750,582.01
3,703,045.79
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
3,683,045.79
4,000,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
Less: Withdrawal
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
3,903,014.27
3,858,129.35
3,810,593.13
3,780,577.48
3,750,582.01
3,703,045.79
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
3,683,045.79
4,000,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
Less: Withdrawal
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
3,903,014.27
3,858,129.35
3,810,593.13
3,780,577.48
3,750,582.01
3,703,045.79
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
3,683,045.79
4,000,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
Less: Withdrawal
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
3,903,014.27
3,858,129.35
3,810,593.13
3,780,577.48
3,750,582.01
3,703,045.79
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
3,683,045.79
4,000,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
Less: Withdrawal
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
3,903,014.27
3,858,129.35
3,810,593.13
3,780,577.48
3,750,582.01
3,703,045.79
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
3,683,045.79
4,000,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
Less: Withdrawal
164 | P a g e
(96,985.73)
(24,884.92)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
3,903,014.27
3,858,129.35
3,810,593.13
3,780,577.48
3,750,582.01
3,703,045.79
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,883,014.27
3,838,129.35
3,790,593.13
3,760,577.48
3,730,582.01
3,683,045.79
July
August
S eptember
October
November
December
3,683,045.79
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
Changes in Equity
Partner 1 Equity, Beginning
Add: Net Income (Loss) Share
Total
(10,028.25)
(9,995.46)
(27,536.22)
(10,015.65)
(9,995.46)
(27,536.22)
3,673,017.54
3,643,022.08
3,595,485.86
3,565,470.21
3,535,474.74
3,487,938.52
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
3,467,938.52
3,683,045.79
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
Less: Withdrawal
(10,028.25)
3,673,017.54
(9,995.46)
3,643,022.08
(27,536.22)
3,595,485.86
(10,015.65)
3,565,470.21
(9,995.46)
3,535,474.74
(27,536.22)
3,487,938.52
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
3,467,938.52
3,683,045.79
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
(10,028.25)
3,673,017.54
(9,995.46)
3,643,022.08
(27,536.22)
3,595,485.86
(10,015.65)
3,565,470.21
(9,995.46)
3,535,474.74
(27,536.22)
3,487,938.52
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
3,467,938.52
3,683,045.79
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
(10,028.25)
3,673,017.54
(9,995.46)
3,643,022.08
(27,536.22)
3,595,485.86
(10,015.65)
3,565,470.21
(9,995.46)
3,535,474.74
(27,536.22)
3,487,938.52
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
3,467,938.52
3,683,045.79
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
(10,028.25)
3,673,017.54
(9,995.46)
3,643,022.08
(27,536.22)
3,595,485.86
(10,015.65)
3,565,470.21
(9,995.46)
3,535,474.74
(27,536.22)
3,487,938.52
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
3,467,938.52
3,683,045.79
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
165 | P a g e
(10,028.25)
3,673,017.54
(9,995.46)
3,643,022.08
(27,536.22)
3,595,485.86
(10,015.65)
3,565,470.21
(9,995.46)
3,535,474.74
(27,536.22)
3,487,938.52
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
3,653,017.54
3,623,022.08
3,575,485.86
3,545,470.21
3,515,474.74
3,467,938.52
2016
2017
2018
2019
2020
4,000,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
38,966.96
133,864.99
Changes in Equity
Partner 1 Equity, Beginning
Add: Net Income (Loss) Share
Total
(292,061.48)
(124,857.10)
(67,315.55)
3,707,938.52
3,343,081.42
3,035,765.87
2,834,732.82
2,728,597.81
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
2,488,597.81
4,000,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
38,966.96
133,864.99
2,834,732.82
2,728,597.81
Less: Withdrawal
(292,061.48)
3,707,938.52
(124,857.10)
3,343,081.42
(67,315.55)
3,035,765.87
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
2,488,597.81
4,000,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
38,966.96
133,864.99
2,834,732.82
2,728,597.81
(292,061.48)
3,707,938.52
(124,857.10)
3,343,081.42
(67,315.55)
3,035,765.87
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
2,488,597.81
4,000,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
38,966.96
133,864.99
2,834,732.82
2,728,597.81
(292,061.48)
3,707,938.52
(124,857.10)
3,343,081.42
(67,315.55)
3,035,765.87
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
2,488,597.81
4,000,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
38,966.96
133,864.99
2,834,732.82
2,728,597.81
(292,061.48)
3,707,938.52
(124,857.10)
3,343,081.42
(67,315.55)
3,035,765.87
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
2,488,597.81
4,000,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
38,966.96
133,864.99
2,834,732.82
2,728,597.81
166 | P a g e
(292,061.48)
3,707,938.52
(124,857.10)
3,343,081.42
(67,315.55)
3,035,765.87
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
3,467,938.52
3,103,081.42
2,795,765.87
2,594,732.82
2,488,597.81
JANUARY
3.2.B.3
FEBRUARY
MARCH
APRIL
MAY
JUNE
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
Add: Purchases
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
2,066,301.62
2,066,301.62
2,066,301.62
2,066,301.62
2,066,301.62
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
3.2.B.3
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
1,033,150.81
94,940.10
94,940.10
94,940.10
94,940.10
94,940.10
Indirect Material
3.1
460.66
460.66
460.66
460.66
460.66
Indirect Labor
10
101,599.62
101,599.62
101,599.62
101,599.62
101,599.62
Plant Utilities
11.1
147,889.19
147,889.19
147,889.19
147,889.19
147,889.19
Depreciation
56,651.23
56,651.23
56,651.23
56,651.23
56,651.23
12
72,017.22
72,017.22
72,017.22
72,017.22
72,017.22
13
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
383,617.92
383,617.92
383,617.92
383,617.92
383,617.92
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
1,511,708.83
3.3
167 | P a g e
3.3
15,746.97
31,493.93
47,240.90
62,987.87
1,511,708.83
1,527,455.80
1,543,202.77
1,558,949.73
1,574,696.70
15,746.97
31,493.93
47,240.90
62,987.87
1,495,961.86
1,495,961.86
1,495,961.86
1,495,961.86
1,574,696.70
NOTES
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
1,033,151
1,033,151
2,066,302
1,033,151
1,033,151
1,033,151
1,033,151
2,066,302
1,033,151
1,033,151
1,033,151
1,033,151
2,066,302
1,033,151
1,033,151
1,033,151
1,033,151
2,066,302
1,033,151
1,033,151
1,033,151
1,033,151
2,066,302
1,033,151
1,033,151
1,033,151
1,033,151
2,066,302
1,033,151
1,033,151
94,940
94,940
94,940
94,940
94,940
94,940
Indirect Material
3.1
Indirect Labor
10
Plant Utilities
11.1
461
101,600
147,889
56,651
72,017
5,000
383,618
461
101,600
147,889
56,651
72,017
5,000
383,618
461
101,600
147,889
56,651
72,017
5,000
383,618
461
101,600
147,889
56,651
72,017
5,000
383,618
461
101,600
147,889
56,651
72,017
5,000
383,618
461
101,600
147,889
56,651.23
72,017
5,000
383,618
1,511,709
1,511,709
15,747
1,511,709
15,747
1,527,456
31,494
1,511,709
31,494
1,543,203
47,241
1,511,709
47,241
1,558,950
62,988
1,511,709
62,988
1,574,697
-
1,511,709
1,511,709
15,747
1,495,962
1,495,962
1,495,962
1,495,962
1,574,697
1,495,962
3.2.B.3
Add: Purchases
Raw Materials Available for Use
Less: Raw Materials Inventory, end
Raw Materials Used
Direct Labor
3.2.B.3
Manufacturing Overhead
Depreciation
12
13
3.3
168 | P a g e
3.3
NOTES
2016
2017
2018
2019
2020
3.2.B.3
12,397,810
12,397,810
1,033,151
11,364,659
1,033,151
13,504,562
14,537,713
1,071,791
13,465,922
1,071,791
14,710,114
15,781,905
1,111,876
14,670,029
1,111,876
16,023,286
17,135,162
1,153,460
15,981,702
1,153,460
17,453,685
18,607,145
1,196,599
17,410,546
1,044,341
1,142,559
1,185,291
1,229,620
1,275,608
Indirect Material
3.1
Indirect Labor
10
Plant Utilities
11.1
5,067
1,117,596
1,626,781
623,164
792,189
55,000
4,219,797
5,896
1,159,394
1,696,883
679,815
836,890
60,500
4,439,377
6,419
1,202,755
1,764,129
679,815
884,334
66,550
4,604,002
7,000
1,247,738
1,834,228
679,815
934,711
73,205
4,776,697
7,627
1,294,404
1,907,316
679,815
988,223
80,526
4,957,909
16,628,797
16,628,797
15,747
19,047,859
15,747
19,063,606
9,448
20,459,322
9,448
20,468,771
10,954
21,988,020
10,954
21,998,974
70,304
23,644,063
70,304
23,714,367
76,444
16,613,050
19,054,157
20,457,817
21,928,669
23,637,924
3.2.B.3
Add: Purchases
Raw Materials Available for Use
Less: Raw Materials Inventory, end
Raw Materials Used
Direct Labor
Manufacturing Overhead
Depreciation
12
13
3.3
169 | P a g e
3.3
3.4
18
3.4
APRIL
MAY
JUNE
708,614
629,879
551,144
472,409
1,495,962
1,495,962
1,495,962
1,495,962
1,574,697
1,495,962
2,204,575
2,125,841
2,047,106
2,047,106
708,614
629,879
551,144
472,409
472,409
787,348
1,574,697
1,574,697
1,574,697
1,574,697
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
AUGUST
3.4
472,409
393,674
314,939
236,205
157,470
157,470
18
1,495,962
1,495,962
1,495,962
1,495,962
1,574,697
1,495,962
1,968,371
1,889,636
1,810,901
1,732,166
1,732,166
1,653,432
393,674
314,939
236,205
157,470
157,470
78,735
1,574,697
1,574,697
1,574,697
1,574,697
1,574,697
1,574,697
3.4
NOTES
Finished Goods
Inventory, beginning
Add: Cost of Goods
Manufactured
Goods Available for Sale
Less: Finished Goods
Inventory, ending
COST OF GOODS
SOLD
170 | P a g e
JULY
NOTES
Finished Goods
Inventory, beginning
Add: Cost of Goods
Manufactured
MARCH
3.4
18
3.4
2016
2017
2018
2019
78,735
236,209
563,804
247,319
16,613,050
19,054,157
20,457,817
21,928,669
23,637,924
16,613,050
19,132,892
20,694,025
22,492,473
23,885,242
78,735
236,209
563,804
247,319
253,282
16,534,315
18,896,683
20,130,221
22,245,155
23,631,961
2020
2017
NOTES
Assets
Current Assets
Cash
Accounts Receivable
Inventories
Prepaid Expenses
Total Current Assets
Non Current
Property Plant and Equipment
Deferred Tax Asset
Total Non Current Assets
TOTAL ASSETS
1
2
3
4
5
6
171 | P a g e
17
2018
Increase/
Decrease (%)
4,270,277
949,207
1,131,890
6,351,375
2019
Increase/
Decrease (%)
2020
Increase/
Decrease (%)
Increase/
Decrease (%)
2,392,375
984,708
1,321,969
4,699,052
-44.0%
3.7%
16.8%
0.0%
-26.0%
310,190
1,532,304
1,691,127
3,533,620
-87.0%
55.6%
27.9%
0.0%
-24.8%
864,370
1,589,612
1,475,735
3,929,718
178.7%
3.7%
-12.7%
0.0%
11.2%
1,337,619
1,649,063
1,531,053
4,517,735
54.8%
3.7%
3.7%
0.0%
15.0%
14,605,138 13,827,570
751,015
1,072,076
15,356,153 14,899,647
21,707,528 19,598,699
-5.3%
42.8%
-3.0%
-9.7%
13,050,003
1,245,173
14,295,177
17,828,796
-5.6%
16.1%
-4.1%
-9.0%
12,272,436
494,158
12,766,594
16,696,312
-6.0%
-60.3%
-10.7%
-6.4%
11,494,868
173,097
11,667,965
16,185,700
-6.3%
-65.0%
-8.6%
-3.1%
899,897
899,897
980,211
980,211
8.9%
8.9%
1,054,201
1,054,201
7.5%
7.5%
1,127,915
1,127,915
7.0%
7.0%
1,254,113
1,254,113
11.2%
11.2%
24,000,000
(1,752,369)
22,247,631
1,440,000
20,807,631
20,807,631
(749,143)
20,058,489
1,440,000
18,618,489
-13.3%
57.2%
-9.8%
0.0%
-10.5%
18,618,489
(403,893)
18,214,595
1,440,000
16,774,595
-10.5%
46.1%
-9.2%
0.0%
-9.9%
16,774,595
233,802
17,008,397
1,440,000
15,568,397
-9.9%
157.9%
-6.6%
0.0%
-7.2%
15,568,397
803,190
16,371,587
1,440,000
14,931,587
-7.2%
243.5%
-3.7%
0.0%
-4.1%
21,707,528 19,598,699
-9.7%
17,828,796
-9.0%
16,696,312
-6.4%
16,185,700
-3.1%
As what can be seen in the horizontal analysis presented in the previous page, the account
that most influence the trend is the cash account. Cash account percentage increased drastically
during the year 2019, this is because of the collection of Accounts Receivable in 2018. This can
be related to the percentage decrease of Accounts Receivable from 2018-2019. This decrease,
further, can be explained by looking at the increase in the number of shipments in December
2018 (see note 8.1.1 Shipments), which means more percentage of Accounts Receivable by the
end of 2018. This increase of shipment is also the explanation why there is a lesser percentage
change in the inventories account in year 2019, because of the increase in shipment in December
2018 (from 20 sacks in 2017 to 30 sacks in 2018) and a constant shipment in December 2019 (30
sacks each for 2018 and 2019).
On the non-current assets portion, there are no additional investment throughout the five
years, therefore, the property, plant and equipment percentage decreases per year. The deferred
tax asset decreased in year 2019 and 2020 due to the expiration of the tax benefit during the net
operating loss carry-over in 2016 and 2017.
To sum up, generally in the four succeeding years, from 2017-2020, the balances of total
assets and total liabilities and equity increases, because of the increase in cash especially in the
year 2019, which influences the Asset section, and because of the net income in the equity
section which drags up the total balance of equity.
172 | P a g e
2016
2017
Increase/
Decrease (%)
NOTES
Sales
Less: Cost of Goods Sold
Gross Income
Add: Other Income
Total Gross Income
Increase/
Decrease (%)
2020
Increase/
Decrease (%)
Increase/
Decrease (%)
26,059,585
20,130,221
5,929,364
1,176,809
7,106,173
8.1%
6.5%
13.6%
8.9%
12.8%
29,196,950
22,245,155
6,951,796
1,281,863
8,233,659
12.0%
10.5%
17.2%
8.9%
15.9%
31,410,728
23,631,961
7,778,767
1,396,295
9,175,062
7.6%
6.2%
11.9%
8.9%
11.4%
2,168,066
3,967,734
1,082,597
2,410,259 11.2%
4,120,882 3.9%
838,033 -22.6%
2,498,432
4,289,318
895,414
3.7%
4.1%
6.8%
2,594,033
4,473,608
932,216
3.8%
4.3%
4.1%
2,697,755
4,680,534
993,584
4.0%
4.6%
6.6%
TOTAL EXPENSES
7,218,398
7,369,175
7,683,163
4.3%
7,999,857
4.1%
8,371,872
4.7%
(576,990) 46.1%
173,097
(403,893) 46.1%
173 | P a g e
8.2
14
15
16
20,340,157 24,115,290
16,534,315 18,896,683
3,805,841 5,218,606
909,173 1,080,365
4,715,014 6,298,971
2019
18.6%
14.3%
37.1%
18.8%
33.6%
Less: Expenses
Selling Expenses
Administrative Expenses
Other Expenses
8.1
2018
2.1%
233,802 140.5%
(70,141)
70,141
233,802 157.9%
803,190 243.5%
(240,957)
240,957
803,190 243.5%
It can be noted from the horizontal analysis that the trend of percentage change per year
of cost of goods sold and sales are directly proportional. This is because of the variable cost in
cost of goods sold, which is, primarily, the purchase of raw materials. Also, in the other income
percentage change, it is in the second year, or 2017 that it has the most increase in percentage.
This is because there was no production in January 2016. Moving on, in the selling expenses, the
percentage change is greater in 2017, also because of no production in January 2016. In the other
expenses, the percentage change is greater in 2017, due to the start up expenses in 2016. To sum
up, the percentage changes in 2018-2020 are relatively the same, except for the net income
which drastically increased in 2019
174 | P a g e
2016
NOTES
Assets
Current Assets
Cash
Accounts Receivable
Inventories
Prepaid Expenses
Total Current Assets
Non Current
Property Plant and Equipment
Deferred Tax Asset
Total Non Current Assets
TOTAL ASSETS
175 | P a g e
2018
CommonSize %
2019
CommonSize %
2020
CommonSize %
CommonSize %
1
2
3
4
4,270,277
949,207
1,131,890
6,351,375
19.7%
4.4%
5.2%
0.0%
29.3%
2,392,375
984,708
1,321,969
4,699,052
12.2%
5.0%
6.7%
0.0%
24.0%
310,190
1,532,304
1,691,127
3,533,620
1.7%
8.6%
9.5%
0.0%
19.8%
864,370
1,589,612
1,475,735
3,929,718
5.2%
9.5%
8.8%
0.0%
23.5%
1,337,619
1,649,063
1,531,053
4,517,735
8.3%
10.2%
9.5%
0.0%
27.9%
5
6
14,605,138
67.3%
13,827,570
70.6%
13,050,003
73.2%
12,272,436
73.5%
11,494,868
71.0%
15,356,153
21,707,528
70.7%
100.0%
14,899,647
19,598,699
76.0%
100.0%
14,295,177
17,828,796
80.2%
100.0%
12,766,594
16,696,312
76.5%
100.0%
11,667,965
16,185,700
72.1%
100.0%
2017
CommonSize %
17
899,897
899,897
4.1%
4.1%
980,211
980,211
5.0%
5.0%
1,054,201
1,054,201
5.9%
5.9%
1,127,915
1,127,915
6.8%
6.8%
1,254,113
1,254,113
7.7%
7.7%
24,000,000
(1,752,369)
22,247,631
1,440,000
20,807,631
110.6%
-8.1%
102.5%
6.6%
95.9%
20,807,631
(749,143)
20,058,489
1,440,000
18,618,489
106.2%
-3.8%
102.3%
7.3%
95.0%
18,618,489
(403,893)
18,214,595
1,440,000
16,774,595
104.4%
-2.3%
102.2%
8.1%
94.1%
16,774,595
233,802
17,008,397
1,440,000
15,568,397
100.5%
1.4%
101.9%
8.6%
93.2%
15,568,397
803,190
16,371,587
1,440,000
14,931,587
96.2%
5.0%
101.1%
8.9%
92.3%
21,707,528
100.0%
19,598,699
100.0%
17,828,796
100.0%
16,696,312
100.0%
16,185,700
100.0%
It can be observed from the vertical analysis that the percentage of cash over the total
assets decreased, from year 2016 to 2018, but it started to increase in year 2019. This is due to
the negative net cash provided by operating activities (see Statement of Cash Flows). The
percentage of accounts receivable over total assets increases over time because of the increase of
sales every year. Generally, the percentage of current assets over total assets decreases, but it
started to increase in 2019. This can be explained by the similar trend in the net income. It started
to increase in 2019 because of the positive income in 2019 which can also be related to the
positive net cash provided by operating activities in 2019. On the other hand, the percentage of
current liabilities over total liabilities and equities is increasing per year, due to the increase of
purchases per year. Also, it can be seen that the percentage of net income over total liabilities
and equity increase every year, which signifies good business condition.
176 | P a g e
2016
CommonSize %
NOTES
Sales
Less: Cost of Goods Sold
Gross Income
Add: Other Income
Total Gross Income
2018
CommonSize %
100.0%
81.3%
18.7%
4.5%
23.2%
2,168,066
3,967,734
1,082,597
10.7% 2,410,259
19.5% 4,120,882
5.3% 838,033
10.0% 2,498,432
17.1% 4,289,318
3.5% 895,414
TOTAL EXPENSES
7,218,398
35.5% 7,369,175
(2,503,384)
751,015
(1,752,369)
8.2
14
15
16
24,115,290
18,896,683
5,218,606
1,080,365
6,298,971
100.0%
78.4%
21.6%
4.5%
26.1%
2019
CommonSize %
20,340,157
16,534,315
3,805,841
909,173
4,715,014
Less: Expenses
Selling Expenses
Administrative Expenses
Other Expenses
8.1
2017
26,059,585
20,130,221
5,929,364
1,176,809
7,106,173
CommonSize %
29,196,950
22,245,155
6,951,796
1,281,863
8,233,659
100.0%
75.2%
24.8%
4.4%
29.2%
9.6% 2,594,033
16.5% 4,473,608
3.4% 932,216
8.9% 2,697,755
15.3% 4,680,534
3.2% 993,584
8.6%
14.9%
3.2%
30.6% 7,683,163
29.5% 7,999,857
27.4% 8,371,872
26.7%
-12.3% (1,070,204)
3.7% 321,061
-4.4%
1.3%
-2.2%
0.7%
0.8%
0.2%
2.6%
0.8%
8.6% (749,143)
3.1% (403,893)
233,802
(70,141)
70,141
1.5% 233,802
100.0%
76.2%
23.8%
4.4%
28.2%
CommonSize %
31,410,728
23,631,961
7,778,767
1,396,295
9,175,062
(576,990)
173,097
100.0%
77.2%
22.8%
4.5%
27.3%
2020
803,190
(240,957)
240,957
0.8% 803,190
2.6%
In the table, it can be seen that over time, the percentage of cost of goods sold over sales
decreases. This is due to the increase of production and finished goods shipped, which means
that the fixed cost is allocated to more units produced which is also why the percentage of gross
income increases per year. Further, the percentage of expenses over sales also decreases because
the fixed expenses are distributed over the increasing number of goods sold (see Note 8 Sales).
Generally, the percentage of net income over sales increases over time due to the increase
177 | P a g e
production which increases the utilization rate of the machineries used in production, thereby
increasing sales and decreasing cost and expenses.
According to Ballada (2010), Ratio analyses are used to understand the health of a
company. Ratios lend insight into many critical aspects such as present and future profit
potential, expense control, and solvency.
The industry ratios presented are gathered from the website www.Biztats.com, a
free online source for small business statistics, owned and operated by BizMiner of Camp
Hill, PA, a leader in online data analysis since 199823. Since the ratios provided are only
for one year, the proponents assumed that it will be constant for 2016 to 2020.
23
http://www.bizstats.com/about.php
178 | P a g e
Working Capital
6,000,000
5,000,000
4,000,000
DPET
3,000,000
2,000,000
1,000,000
2016
2017
2018
2019
2020
Working capital is a measurement of the companys ability to repay its current liabilities
using only its current assets. It will be computed using the formula below:
The table below shows the working capital of DPET for 2016 to 2020.
Current Assets
Current Liabilities
Net Working Capital
2016
6,351,374.81
899,896.82
5,451,477.99
2017
4,699,052.21
980,210.51
3,718,841.70
2018
3,533,619.91
1,054,201.26
2,479,418.65
2019
3,929,717.64
1,127,914.61
2,801,803.02
2020
4,517,734.89
1,254,113.42
3,263,621.47
Based from the data, the company has a strong working capital which has both positive
and negative significance. For the positive side, the companys working capital is advantageous
in terms of obtaining short-term credit at favorable interest rates, because a strong working
capital means that the company is able to pay its short-term obligations in a timely manner.
However, in the negative side, too much working capital, as in the case of the company,
179 | P a g e
indicates that there is ineffective management of current assets because they can utilize its
excess current assets by investing in long term assets, which yield higher rates of return. The
fluctuation of working capital is because of continues losses which impacts the cash balance and
increase ofliabilities in first year up to third year. But on the fourth year, it rises because it starts
earn profit. Despite of the fluctuation, the company will still be able to pay its current liabilities
when they become due because current assets still exceed current liabilities in each year.
Current Ratio
8.00
7.00
6.00
5.00
DPET
4.00
Industry
3.00
2.00
1.00
0.00
2016
2017
2018
2019
2020
The current ratio also describes the ability of the company to meet current debt
obligations with assets that are readily available. The current ratio is used to evaluate a
companys liquidity and short-term debt paying capacity. This statistics is often assigned great
importance by lenders in making credit-granting decisions since current assets and current
liabilities represent the core of the companys daily operations. Its difference from the working
capital is that it emphasize the relationship of each peso amount of current asset to each peso
amount of liabilities. It will be computed using the formula below:
180 | P a g e
The industry has a current ratio of 1.30. . The table below shows the current ratio of
DPET for 2016 to 2020.
Current Assets
Current Liabilities
Current Ratio
2016
6,351,374.81
899,896.82
7.06
2017
4,699,052.21
980,210.51
4.79
2018
3,533,619.91
1,054,201.26
3.35
2019
3,929,717.64
1,127,914.61
3.48
2020
4,517,734.89
1,254,113.42
3.60
DPET has higher current ratio than the industry. It is because of the initial high initial
investment of the partners that even there are withdrawals in every year, there are more than
enough assets to cover the short term obligations. Notwithstanding the consecutive decreases
during the first three years, it still has a current ration above the industry.
181 | P a g e
Quick Ratio
6.00
5.00
4.00
DPET
3.00
Industy
2.00
1.00
0.00
2016
2017
2018
2019
2020
The industry has a quick ratio of 0.65. The table below shows the quick ratio of DPET for
2016 to 2020.
2016
Current Assets
Inventory
Current Liabilities
Quick Ratio
182 | P a g e
2017
2018
2019
2020
6,351,374.81
1,131,890.10
899,896.82
4,699,052.21
1,321,969.17
980,210.51
3,533,619.91
1,691,126.73
1,054,201.26
3,929,717.64
1,475,735.49
1,127,914.61
4,517,734.89
1,531,053.13
1,254,113.42
5.80
3.45
1.75
2.18
2.38
As compared to the industry ratio, DPET also has a higher quick ratio which rises its
liquidity, thus giving a security of being paid its short-term creditors especially the suppliers
who take the biggest part of the current liabilities.
14.00
12.00
10.00
8.00
DPET
6.00
4.00
2.00
0.00
2016
2017
2018
2019
2020
can
the most liquid asset of a business, thus the more cash the company will be able to have, the
more assured will be its creditors. It will be computed using the formula below:
183 | P a g e
The table below shows the accounts receivable turnover ratio of DPET for 2016
to 2020.
2016
Sales on Account
Average Accounts Recevable
2017
2018
2019
2020
10,170,078.28
832,170.69
12,057,644.81
966,957.48
13,029,792.42
1,258,505.62
14,598,475.19
1,560,957.67
15,705,364.02
1,619,337.48
12.22
12.47
10.35
9.35
9.70
The fluctuating times of collection times, although it can be observed that each
year is beyond nine times, cannot be interpreted independently from the average
age
of
receivables since there is no data available for the industrys accounts receivable turnover ratio
on which it can be compared.
40.00
35.00
30.00
25.00
DPET
20.00
15.00
10.00
5.00
0.00
2016
2017
2018
2019
2020
the
the collection
period is within the credit term or, if beyond, at least near to it. It will be computed using the
formula in the next page:
184 | P a g e
The table below shows the average age of receivables ratio of DPET for
2016 to 2020.
Number of Days
Accounts Receivable Turnover
Average Age of Accounts Receivable
The average collection period for each year shows to be acceptable since the
credit term according to the companys policy is 30 days after the recognition
of
accounts
Inventory Turnover
16.00
14.00
12.00
10.00
DPET
8.00
Industry
6.00
4.00
2.00
0.00
2016
185 | P a g e
2017
2018
2019
2020
cash is being
below:
The industry has an inventory turnover of 0.65. The table below shows the
inventory turnover ratio of DPET for 2016 to 2020.
2016
16,534,315.35
1,414,467.57
11.69
2017
18,896,683.45
1,226,929.64
15.40
2018
20,130,221.15
1,506,547.95
13.36
2019
22,245,154.55
1,583,431.11
14.05
2020
23,631,960.78
1,503,394.31
15.72
186 | P a g e
60.00
50.00
40.00
DPET
30.00
Industry
20.00
10.00
0.00
2016
2017
2018
2019
2020
Average age of inventory is the measurement of the average days for the entire
inventory to be sold. It must be known because inventories has the risk of
obsolescence
and deterioration. Thus, maintaining high level of inventory will have its negative effect to the
company. It will be computed using the formula below:
The industry has average age of inventory of 54.48 days. The table below shows
the average age of inventory ratio of DPET for 2016 to 2020.
2019
365
14.05
25.98
2020
365
15.72
23.22
liquid
Number of Days
Inventory Turnover
Average Age of Inventory
2016
365
11.69
31.22
2017
365
15.40
23.70
2018
365
13.36
27.32
because it has significantly shorter time to moving its inventory, hence, it can
inventories into cash sooner than that of the industry.
187 | P a g e
convert
its
assess such.
Return on Sales
0.0600
0.0400
0.0200
2016
2017
2018
(0.0200)
2019
2020
DPET
Industry
(0.0400)
(0.0600)
(0.0800)
(0.1000)
188 | P a g e
The industry has a return on sales of 4.07%. The table below shows
the
2017
-749,142.59
24,115,289.62
(0.0311)
2018
-403,893.32
26,059,584.85
(0.0155)
2019
233,801.73
29,196,950.39
0.0080
2020
803,189.93
31,410,728.05
0.0256
determined
remembered that on
the fifth year, which has the highest return on sales for the first five years of operation, it has
only attain the 62.83% of the industrys return
on sale.
0.0600
0.0400
0.0200
DPET
2016
(0.0200)
(0.0400)
(0.0600)
(0.0800)
189 | P a g e
2017
2018
2019
2020
Industry
period.
companys
It
will
be
The industry has a return on total assets of 4.33%. The table below shows the
return on total assets of DPET for 2016 to 2020.
Profit (Loss)
Interest Expense
Average Total Assets
Return on Total Assets
2016
-1,752,368.87
22,818,826.72
(0.0768)
2017
-749,142.59
20,653,113.50
(0.0328)
2018
-403,893.32
18,713,747.76
(0.0177)
2019
233,801.73
17,262,554.02
0.0102
2020
803,189.93
16,441,005.92
0.0352
noticed
that
manufacturing company. However, it is worthy to take note that on its fifth year, DPET is only
0.81% lower than the industrys return on total assets
improving asset management efficiency.
190 | P a g e
which
is
an
indicator
of
its
0.1200
0.1000
0.0800
0.0600
0.0400
DPET
0.0200
Industry
(0.0200)
2016
2017
2018
2019
2020
(0.0400)
(0.0600)
(0.0800)
The industry has a return on partners equity of 11.67%. The table below shows
the return on partners equity of DPET for 2016 to 2020.
Profit (Loss)
Average Partners' Equity
Return on Partners' Equity
191 | P a g e
2016
-1,752,368.87
22,033,175.49
-0.08
2017
-749,142.59
19,713,059.83
-0.04
2018
-403,893.32
17,696,541.88
-0.02
2019
233,801.73
16,171,496.08
0.01
2020
803,189.93
15,249,991.91
0.05
Comparing the DPETs ratio with that of the industry, it can be observed that
there is a significant difference for each year of operation. It must be noted
fifth year, which has the highest return on partners equity for the first
attain the 45.13% of the industrys return on equity
ratio. This
that
on
the
must
be
investments.
0.70
0.60
0.50
0.40
DPET
0.30
Industry
0.20
0.10
0.00
2016
192 | P a g e
2017
2018
2019
2020
Debt to total assets ratio is the measurement of the amount of assets that
financed by debt. It will be computed using the
are
formula below:
The industry has debt to total assets ratio of 63%. The table below shows
the debt to total assets ratio of DPET for 2016 to 2020.
Total Liabilities
Total Assets
2016
2017
899,896.82
980,210.51
1,054,201.26
1,127,914.61
1,254,113.42
21,707,527.95
19,598,699.05
17,828,796.47
16,696,311.56
16,185,700.29
0.04
0.05
0.06
0.07
0.08
2018
2019
2020
There is a clear big gap between DPETs debt to total assets ratio and the
industrys debt to total assets ratio. Lower debt to total assets ratio represents a
more stable business for it provides a less risk of exhausting all of companys
assets to pay its liabilities.
193 | P a g e
1.00
0.90
0.80
0.70
0.60
DPET
0.50
Industry
0.40
0.30
0.20
0.10
0.00
2016
2017
2018
2019
2020
Equity to total assets ratio is the measurement of the amount of assets that are
financed by owners' investments. It is the total opposite of the other solvency ratio and
will be computed using the
formula below:
The industry has equity to total assets ratio of 37%. The table below shows the
equity to total assets ratio of DPET for 2016 to 2020.
Total Equity
2016
20,807,631.13
2017
18,618,488.54
2018
16,774,595.21
2019
15,568,396.95
2020
14,931,586.87
Total Assets
21,707,527.95
19,598,699.05
17,828,796.47
16,696,311.56
16,185,700.29
0.96
0.95
0.94
0.93
0.92
194 | P a g e
There is also anevident large gap between DPETs equity to total assets ratio and
the industrys equity to total assets ratio. Higher equity to total assets ratio represents a
worth investing business appearance for it shows the willingness of the investors to
finance such company.
195 | P a g e
Payback Period
Year
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
196 | P a g e
Investment
24,000,000
Net Cash
Provided by
Operating
Activities
(2,963,669)
(437,902)
(642,186)
1,243,166
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
1,592,187
Amount to be
recovered
26,963,669
27,401,571
28,043,756
26,800,591
25,208,404
23,616,217
22,024,030
20,431,843
18,839,656
17,247,469
15,655,282
14,063,095
12,470,908
10,878,721
9,286,534
7,694,347
6,102,159
4,509,972
2,917,785
1,325,598
(266,589)
(1,858,776)
(3,450,963)
(5,043,150)
(6,635,337)
(8,227,524)
The number of periods in which the business will be able to recoup its initial investment
is approximately 21 years, or 20.83 years specifically. This computation is based on the
assumption that the company will have the same net cash flows provided by operating activities
in the last year projected (2020). This assumption is used because if the proponents use the
average of five years (2016-2020), the result will be not feasible, and proponents deem it
incorrect due to the projected increasing trend starting 2019. Further, if the proponents use only
the average of the positive net cash from operating activities (2019 to 2020) and use it to project
the increase in the succeeding years, it will not be prudent because of the expected natural
fluctuations of cash flows. Therefore, the most appropriate and prudent estimation is to assume
the same net cash flows in the last year projected (2020) in projecting the succeeding years to be
able to get the payback period.
The payback period of approximately 21 years imply that it is only after 21 years that the
company's investment will be recovered. This implies that the business is not a good investment
because of the relatively long payback period; however, the proponents recommend that the
projection of financial statements be longer than five years in order to more or less provide a
better approximation of the net cash flows provided by the company which is the basis of the
payback period.
197 | P a g e
voucher to bookkeeper- GL, and reviewed stock release to inventory analyst. The
bookkeeper- SL will update the accounts receivable records and will send the accounts
receivable summary to bookkeeper- GL. The inventory analyst will update the inventory
records and will send journal voucher to bookkeeper- GL. Bookkeeper- GL will then
reconcile the two documents. After reconciliation, bookkeeper- GL will post to general
ledger records and file the approved journal voucher.
198 | P a g e
199 | P a g e
The data flow diagram shown in Figure 4.8.1b represents the logical elements of
cash receipts system. The customer will pay by depositing on the companys account in
the bank. The customer will send the deposit slips together with the remittance advice.
The Customer remittance officer will make a remittance list out of the information in the
documents provided by the customer. Customer remittance will then send the remittance
advice and a copy remittance list to bookkeeper- SL, the deposit slips and a copy
remittance list to cash receipts officer and a copy of remittance list to the treasurer. The
bookkeeper- SL will update the accounts receivable records and will send the accounts
receivable summary to bookkeeper- GL. The cash receipts officer will record the cash
receipts and will send the cash receipt journal voucher to bookkeeper- GL. BookkeeperGL will then reconcile the two documents. After reconciliation, bookkeeper- GL will post
to general ledger records and file the approved journal voucher. The treasurer will
reconcile the bank statement, remittance list and journal vouchers.
200 | P a g e
201 | P a g e
202 | P a g e
203 | P a g e
The data flow diagram shown in Figure 4.8.2.2 represents the logical elements of
cash disbursements system. Cash disbursement process will start by identifying liabilities
due by the bookkeeper- SL. Bookkeeper- SL will send voucher packet to cash
disbursement officer. Cash disbursement officer will record the payment detail to the
check register, send the check to supplier, send a copy of the check to bookkeeper- SL,
and a journal voucher to bookkeeper- GL. Bookkeeper- SL will update the accounts
payable record and send the accounts payable summary to bookkeeper- GL. BookkeeperGL will then reconcile the journal voucher and accounts payable summary. After
reconciliation, bookkeeper- GL will post to general ledger records and file the approved
journal voucher.
204 | P a g e
205 | P a g e
The data flow diagram shown in Figure 4.8.2.3 represents the logical elements of
payroll system. Payroll process will start when the operations manager gives the job
tickets to cost accountant and time cards to payroll accountant. The payroll accountant
will reconcile time cards with the personnel action forms from human resource officer.
After reconciliation, the payroll accountant prepares the payroll register showing gross
pay, deductions, overtime pay, and net pay to be sent to bookkeeper- SL, enters the
information into the employee payroll records, and prepares employee paychecks to be
sent to the cash disbursement officer. Bookkeeper- SL will review the payroll register,
send voucher packet to cash disbursement officer, record the disbursement voucher to
voucher register and send the disbursement voucher to bookkeeper- GL. Cash
disbursement officer will prepare the payroll check, enter the amount to the check
register, send a copy of the payroll check together with the voucher packet to
bookkeeper- SL, send a journal voucher to bookkeeper- GL, deposit the payroll check to
the bank, and distribute the employee paychecks to the employees. Bookkeeper- GL will
then reconcile the disbursement voucher, labor summary, and journal voucher. After
reconciliation, bookkeeper- GL will post to general ledger records and file the approved
journal voucher.
206 | P a g e
207 | P a g e
208 | P a g e
209 | P a g e
Accounting Control
Every business usually ensures that the activities that will be done are in
conformity with the organizations objectives. In consideration of this, it is necessary to
have a valid and accurate financial statements for these are records of businesss financial
activities. Furthermore, attaining reliable financial reporting entails implementation of
internal controls to have a reasonable assurance that the information provided represent
the results of business transactions. Also, such implementation will safeguard its financial
resources particularly its assets from possible fraud or theft.
Firstly, proper authorization will be observed in every transaction. In every sales
transaction, credit check must be performed to ascertain that the entity is transacting with
a valid and creditworthy customer. Personnel action form together with the time cards
will serve as authorization documents as to whom and how much will be given for
payroll accounting. Only suppliers in the master list will be the authorized sources for
purchasing raw materials.
Secondly, segregation of duties will be executed to ensure that incompatible tasks
will not be assigned to one employee. Asset custodian and record keeper must be
different personnel. The time cards and personnel action plan must not be responsibility
of only one person. Cash receipts and disbursing officer must be separated from accounts
receivable and accounts payable accountant. General ledger accountant and subsidiary
ledgers accountant must not be the same.
Thirdly, supervision will be performed in different areas within the entity. The
receiving of raw materials must be closely supervised to confirm the accuracy of quantity
received. The clocking in of the employees must be monitored to validate the time
210 | P a g e
shown in the time cards reflect the hours worked. The distribution of paychecks also be
supervised.
Fourthly, sufficient and updated accounting records will be maintained. These
records will consist of pre-numbered source documents, time cards, job tickets, labor
distribution summary, payroll register, special journals (e.g. cash receipts journal),
subsidiary ledgers, general ledger, and files. These records will provide audit trail in
which each business transaction can be traced as it occurs.
Fifthly, access controls will be applied. Security devices like safe deposit will be
used and security personnel will be hired so that only authorized personnel will be
allowed to access firms assets such as cash and inventories. Access to business records
will also be limited. For this reason, the business will use file cabinet with lock for
documents security.
Lastly, independent verification will be performed to verify the accuracy and
completeness of procedures executed in the each business transaction. Billing personnel
will reconcile shipping notice with sales invoice to ensure that only shipped goods will be
billed to customers. General ledger accountant will reconcile journal vouchers from
billing, inventory control, cash receipts, and accounts receivable. Bank reconciliation will
be done periodically by the treasurer.
211 | P a g e
24
http://www.neda.gov.ph/?p=1128
Philippine Development Plan 2011-2016. Chapter 3 Competitive Industry and Services Sectors. P.62
Retrieved from: http://www.neda.gov.ph/wp-content/uploads/2013/09/CHAPTER-3.pdf
25
212 | P a g e
26
213 | P a g e
2020
508,481
508,481
2019
-
2020
-
325,597
508,481
325,597
508,481
214 | P a g e
License Plate
Tax Clearance
Fire Safety Inspection Fee
Property Registration Permits and Fees31
Notarized Deed of Sale (3% of Propertys value)
Copy of tax declaration and certificate of with improvement
from CAO
Tax Clearance Certificate of RPT from CTO
Certificate Authorizing Registration from BIR
Transfer Tax ( 0.8% of Property Price)
Registration at Register of Deeds
Registration Fee
Legal Research Fee (1% of Registration Fee)
Judicial Form Fee
IT Fee
Primary Entry Fee
Registration Fee for Specific Documents
Fixed Entry Fee for Specific Documents
Legal Research Fee for Specific Documents
Annotation Fee
Fee for issuance of new transfer certificate of title
Construction-Related Permits and Fees32
Obtain Lot plan with site map
Notarized the locational clearance application form
Obtain Locational clearance from CPDO ( P1.5 per square
meter + P300)
Fire Safety Evaluation Clearance ( 0.1% of estimated
project cost)
Building Permit
Validation from CPDO Zoning Administrator
Certificate of Occupancy
Fire Safety Inspection Certificate
Application for Water Connection
Total Local Government Revenue from Starting the Business
31
150.00
50.00
300.00
330,000.00
120.00
50.00
115.00
40,000.00
50,646.00
507.00
30.00
2,688.00
330.00
600.00
150.00
50.00
60.00
258.00
55,319.00
500.00
100.00
2,400.00
60,000.00
37,400.00
75.00
5,548.00
555.00
3,000.00
PHP 578,982.00
215 | P a g e
33,150.00
2020
578,982.00
789,088.00
828,656.00
868,224.00
1,026,496.00
1,184,768.00
1,368,070.00
828,656.00
868,224.00
1,026,496.00
1,184,768.00
33
216 | P a g e
Philippines may no longer need to import their raw material, which is PET pellets, in order to
process plastic products.
The establishment of the business, however, will have a negative impact to the previous
buyers or customers of the junk shops where the company plans to purchase its raw materials. If
the company will purchase the PET bottles from these junk shops, this will result to the decrease
in the amount of PET plastics available for the junk shops previous customers.
5.4 Demand for Materials
The materials needed in the companys operations are procured from junkshops in Davao
City. In the survey conducted during the market study, 34% are currently selling PET
plastics/recyclable at 18.00 Php per kilogram, further the average selling price of PET plastics is
17.75 Php. The company then can help the local junkshops by contracting them for a higher
price which is at 20.00 Php per kilogram. In this way, the company, not only maintaining a
competitive price for getting its raw materials, also helps or contributes in the increase of profit
of junkshops.
217 | P a g e
218 | P a g e
219 | P a g e
Partners They are the parties to an arrangement who contribute resources to a common
fund and divide the profits among themselves. They provide the necessary capital for the
business to operate.
220 | P a g e
operational efficiency and will usually report to the highest levels of management on how
to improve the overall structure and practices of the company.34
Managing Partner The managing partner is one of the partners who contribute his skills
to the partnership. He is assigned to handle the companys overall activities and
responsible for the companys overall well-being.
Treasurer The treasurer performs custodial responsibilities of the financial assets of the
business especially cash. He is tasked to perform liquidity risk management and proper
cash management. He also signs the checks for disbursement.
Cash Disbursement Officer This person prepares the cash disbursement check to
be given to the suppliers and inputs payment detail in the check register.
Human Resource Officer Assigned to hire competent and highly qualified employees,
he also updates personnel information and status.
Accounting:
Payroll / Cash Receipts Officer He will prepare the payroll schedule of the
company and he will also record the companys receipt of cash from suppliers in
the cash receipts journal.
Cost Accountant He is assigned to update work in process account, prepares
product cost schedule and allocates cost. Investigates variances and resolve issues
related to production.
34http://www.investopedia.com/terms/i/internalauditor.asp
221 | P a g e
Marketing Analyst He is tasked to handle the website of the business and ensure that
supplier and customer relationships are properly taken care of because most of the
communication and contacting are done online. He will also handle all the marketing and
promotional activities of the business.
Operations Manager The operations manager handles the day to day operations in the
plant. He is assigned to manage and supervise the following:
Plant Workers This is composed of ten (10) workers and two (2) maintenance
personnel. They perform the day to day activities of the business.
Sales Order/Purchase Order Prepares sales orders from customers and purchase
orders to suppliers.
35http://en.wikipedia.org/wiki/Bookkeeping
222 | P a g e
Receiving / Shipping Officer Assigned to check the the quantity and quality of
raw materials during the procurement procedure. He is also assigned to supervise
and ensure the quantity and quality of the finished products to be shipped to
customers.
Inventory/Supply Analyst He will ensure that there is enough supply of raw materials
and other supplies needed for production and operation. Performs inventory check and
purchase requisition.
223 | P a g e
DATE OF EXECUTION
July 22-27, 2014
July 28, 2014 August 10, 2014
TIME DURATION
One week
Two weeks
One week
Four Weeks
One week
One week
Two weeks
One month
One week
One month
Land Clearing
One week
224 | P a g e
Construction of Building
Six months
Two months
Installation of equipments,
furniture and fixtures
One week
Two Weeks
Three weeks
Hiring of employees
Two weeks
Two month
Two weeks
One month
Start of Operations
February 1, 2016
225 | P a g e
Two weeks
226 | P a g e
Chapter 7 Recommendation
Based on the discussions between the proponents and the panel lists during the project
presentation, the recommendation below is worthy to mention.
Since the utilization rate of the machine used for producing the end products only has an
average of 43%, it will be an indication of an inefficiency of the companys production.
In order to remedy this problem, the partnership will consider initiating programs and
activities for schools, malls, hospitals, and other institutions within Davao City that will
enable the company to get PET Bottles from them in addition to the inventories provided
by the current suppliers. Example of these activities include:
Giving of freebies in exchange of PET Bottles
Coordinate with environmental organizations or clubs of universities, like
ECOTENISTA, Nature Watch, and YES-O.
Research further for the supply and demand part due to probability that the reason why
there is an excess demand for PET flakes is because there is a lack of raw materials (PET
bottles).
To provide a better projection of financial statements, the partnership should extend their
data gathering regarding the suppliers of raw materials. As a result of the increase of
supply, the company can then respond to the demand of PET flakes. Also, will be a
further increase of utilization rate of the machine thereby increasing the financial status
of the business and earlier recovery of the 24,000,000 Php initial investment
227 | P a g e
Appendices
Appendix A: List of Suppliers
Company
Name
Business Type
Location
Main
Products:
Size (based
on):
Annual
Revenue (in
US dollars)
Annual
Revenue (in
Philippine
pesos)
Number of
Employees
Main Markets
Product
Quality
Selling Price:
Min Order
unit price (US
$/ton)
unit price
(Php/ton)
supply ability
(tons/year)
Reference
228 | P a g e
1
Beijing Ou
Yuan Sheng Fa
Plastic
Products Co.,
Ltd.
Manufacturing,
Trading
Company
Beijing, China
-
CHINA
2
3
Shijiazhuang
Shijiazhuang
Aojie Trading
Refining and
Co., Ltd.
Plastic Trading
Co., Ltd.
4
Lanzhou
Qianmiaonuo
Trading Co.,
Ltd.
Manufacturing,
Trading
Company
Heibei, China
-
Manufacturer
Trading
Hebei, China
Gansu, China
10-50 Million
50-100 Million
441-2,207
Million
2,207-4,415
Million
51-200
5-50
North America,
South America,
Eastern
Europe,
Southeast Asia,
Africa,
Oceania, Mid
East, Eastern
Asia, Western
Europe
fibre-grade
Europe, Africa,
the Middle
East, Southeast
Asia and
Russia
global
fibre-grade
fibre-grade
1 ton
1 ton
20 tons
1,500
850
960
1,117.00
66,626
37,754
42,380
49,312.20
http://sjzaojie.en.m
ade-inchina.com/product/
lSfxWXhThYkC/C
hina-Hot-SellingCheap-Clean-andTransparent-PetFlakes.html
http://lianhuasuliao
.en.made-inchina.com/product/
HqDmhLnEIsRY/
China-The-FlakesPet.html
http://qianmiaonuo.
en.made-inchina.com/product/
gvrQKnDYuuVm/
China-Pet-ChipsPet-Flakes-forBottle-Sheet-FilmFiber-Textile.html
5-50
-
fibre-grade
5 tons ;
20 tons
1,150;
1,125
51,080;
49,970
http://ouyuansheng
fa.en.made-in
china.com/product/
gSJQiutxmphV/Ch
ina-Pet-ScrapFlakes.html
Europe,
Africa, Middle
East,
Southeast Asia
Company
Name
Business Type
Location
Main
Products:
Size (based
on):
Annual
Revenue (in
US dollars)
Annual
Revenue (in
Philippine
pesos)
Number of
Employees
Main Markets
Product
Quality
Selling Price:
Min Order
unit price (US
$/ton)
unit price
(Php/ton)
supply ability
(tons/year)
Reference
229 | P a g e
5
Sharath
Corporation
LTD.
Manufacturer,
Trading
Company,
Agent
Bangladesh
BANGLADESH
6
7
Interlink PLC
Moonlight PET
Flakes
Industris
Manufacturer,
Manufacturer
Trading
Company
8
Bangladesh
Recycling Ind.
Ltd.
Trading
Company,
Distributor/Wh
olesaler
Bangladesh
Dhaka,
Bangladesh
Textile
Waste,PET Fla
kes,Nylon
Waste
Bangladesh
waste pet bottle
flakes clear
green and
brown
PET FLAKES,
PET BOTTLE,
POTATO
1-2.5 Million
1-2.5 Million
1-2.5 Million
100 Million
Above
44-111 Million
44-111 Million
44-111 Million
4,415 Million
Above
101 - 200
51 - 100
101 - 200
11-50
Southern
Europe,
Northern
Europe,
Central
America,
Western
Europe,
Eastern Asia
fibre-grade
Eastern Asia,
Southeast Asia
Eastern Asia,
Southeast Asia
Eastern Asia,
Southeast Asia
fibre-grade
fibre-grade
fibre-grade
11 tons
850
25 tons
925
44 tons
800
42 tons
950
881.25
37,754
40,836
35,318
41,940
38,904.54
Leather,Leathe
r
Product,Rubber
& Rubber
Product,Pet
Flakes,Apparel
s
1200
1200
4800
2520
http://www.alibaba
.com/productdetail/Pet-FlakesClearColour_131091308
.html
http://www.alibaba
.com/productdetail/PET-FlakesClear-Color-HotWashed_14900087
6.html
http://bd11580215
8.fm.alibaba.com/c
ompany_profile.ht
ml#top-nav-bar
Eastern Asia,
Southeast Asia
Company
Name
Business
Type
Location
Main
Products:
Size (based
on):
Annual
Revenue (in
US dollars)
Annual
Revenue (in
Philippine
pesos)
Number of
Employees
Main
Markets
Product
Quality
Selling
Price:
Min Order
unit price
(US $/ton)
unit price
(Php/ton)
supply
ability
(tons/year)
Reference
230 | P a g e
9
Noman
International
Manufacturer
Pakistan
Pet Flakes,Pet
Flakes Clear /
White,Pet
Flakes
Green,Pet
Flakes Light
Blue
PAKISTAN
10
11
MUSAAB MOOSA
KHURSHEED
ENTERPRISES
International
Manufacturer, Trading Manufacturer
Company,
Distributor/Wholesaler
Pakistan
Pakistan
PET FLAKES,PET
White Clear Pet
FLAKES CLEAR
flakes
COLOUR,PC CD /
DVD SCRAP,PET
SETRIPE CHOPPED
GREEN
COLOUR,PET
FLAKES GREEN
12
A.R.IMPEX
Manufacturer,
Buying Office,
Agent
Pakistan
WHITE PET
FLAKES,GRE
EN PET
FLAKES,WHI
TE POP
CORN,BLACK
POP CORN
1-2.5 Million
5-10 Million
44-111 Million
222-444 Million
51 - 100
51 - 100
Eastern Asia,
Mid East
North America,South
America,Eastern
Europe,Southeast
Asia,Africa,Mid
East,Eastern
Asia,Western
Europe,Central
America,Northern
Europe,
Southern Europe
fibre-grade
fibre-grade
11-50
Eastern
Asia,
Middle
East
fibre-grade
fibre-grade
50 tons
815
20 tons
925
20 tons
775
25 tons
740
813.75
35,980
40,836
34,214
32,669
35,925
2400
6000
9600
6000
http://nomanintl.tr
ustpass.alibaba.co
m/company_profil
e.html#top-nav-bar
http://www.alibaba.com/prod
uct-detail/Pakistan-MMECold-Washed-PETFlakes_125169646.html
http://www.alibaba.c
om/productdetail/PetFlakes_169221735.h
tml
http://pk102304495
6.trustpass.alibaba.c
om/company_profil
e.html#top-nav-bar
INDIA
13
14
Dee Tee Industries Ltd.
APTEXIM
Bhuvani Exports
Location
Manufacturer / Exporters
/ Wholesale Suppliers
India
India
Manufacturer / Exporters
/ Wholesale Suppliers
India
Main Products:
350 - 400
Main Markets
Worldwide
worldwide
Product Quality
fibre-grade
fibre-grade
fibre-grade
Selling Price:
Min Order
5 tons
50 tons
940
860
41,498.18
37,966.42
2400
12000
Company Name
Business Type
231 | P a g e
http://www.exportersindia.com
/deetee__industries/products.ht
m
Company
Name
16
Bluemax
Tradelink Inc.
Business Type
Manufacturer,
Distributor/Wh
olesaler, Other
Location
MAKATI ,
Philippines
Main
Products:
Reclamation
Sand,Construct
ion
Sand,Magnetite
Iron
Sand,Mangane
se Ore,Coconut
Shell Charcoal
Size (based
on):
Annual
Revenue (in
US dollars)
Annual
Revenue (in
Philippine
pesos)
Number of
Employees
Main Markets
Product
Quality
Selling Price:
Min Order
unit price (US
$/ton)
unit price
(Php/ton)
supply ability
(tons/year)
Reference
232 | P a g e
PHILIPPINES
17
18
JJ&P
JJ&P
Commodities
Commodities
Corporation
Corporation
Manufacturer,
Agent
S Bautista,
Valenzuela
City,
Philippines
Pet Flakes,PET
Recycled
Plastics,PE
Flakes,Mixed
PP & PE
plastic
19
Evolution
Resources Inc,
Manufacturer
Manila,
Philippines
20
C&N Metals
and Minerals
Trading Co.
Trading
Company,
Buying Office,
Agent
Quezon City,
Philippines
Wire
Rods,Steel
Plate,Reinforce
ment Bar,Ferro
Alloys,CRCHRC
1 Million
5-10 Million
44 Million
222-444
Million
101 - 200
11-50
5-10
Southeast Asia
Southeast Asia
fibre-grade
fibre-grade
fibre-grade
fibre-grade
Mid East,
Southern
Europe,
Southeast Asia,
Eastern Asia,
Sou
fibre-grade
18 tons
1200
24 tons
-
25 tons
-
75 tons
-
50 tons
790
52,976
34,876
1200
4800
2400
19200
http://ph10429772
7.trustpass.alibaba.
com/company_prof
ile.html#top-navbar
http://www.alibaba
.com/productdetail/PetRecycledFlakes_101360777.
html
http://www.alibaba
.com/productdetail/RecycledGreen-PET-plasticscrap_164396533.h
tml
http://www.alibaba
.com/productdetail/PET-BottleFlakes_120636795.
html
http://ae100517304
.fm.alibaba.com/
PHILIPPINES
21
22
23
24
Company Name
Ameripil Industry
Demsol Plastic
Manufacturing
Brenwin enterprises
corporation
Innovo Plastics
Business Type
Manufacturer,
Trading Company
Manufacturer
Trading Company
Manufacturer, other
Location
Calamba,
Philippines
marikina,
Philippines
Manila, Philippines
Main Products:
PP
PET FLAKES
Number of
Employees
51-100
Main Markets
Product Quality
fibre-grade
fibre-grade
fibre-grade
fibre-grade
Selling Price:
Min Order
15 tons
20 tons
100 tons
supply ability
(tons/year)
480
1200
http://ph1020709014.fm.
alibaba.com/
http://www.alibaba.com/
product-detail/PETplastic-Bottle-wastePETcrushed_126789914.htm
l
http://www.alibaba.com/
product-detail/PETFLAKES_116191898.ht
ml
Reference
233 | P a g e
1400
http://www.alibaba.com/
product-detail/scrapplastics-and-scraprubber_101557352.html
2
Zhejiang
Jiali
Renewable
Resources
Co., Ltd
Business
Type
Location
Manufacturing
Manufacturing
Fujian,
China
CNF,
Shanghai
Main
Products:
Size (based
on):
Annual
Turnover
Number of
Employees
Main
Markets
Product
Quality
Selling
Price:
Min Order
(tons)
Annual
Purchase
Volume
Unit Price
Reference
PET Fibre
Company
Name
234 | P a g e
CHINA
3
D.K.INTER
NATIONAL
COMPANY
4
Shanghai
clean
technology
co., LTD.
5
W.W
Textile
6
PET Flakes
Genius
Group
Manufacturing
Manufacturer
Manufacturer
Manufacturer
Shanghai
port, China
Shanghai,
China
Shanhai,
China
Mazhen
Industrial
Zone
Wuxi,
Anhui,
21000
China
PET Fibre
PET Fibre
30,000 Tons
18,000 Tons
$800/MT
$750/MT
http://www.petflakespsf.com/?gclid=
CMvKpYryrcA
CFZcDvAoda3
kANg
http://www.2wt
extile.com/Imp
ort.htm
Fibre
Clear
Colored
Clear
colored
24,000 Tons
15,600 Tons
6,00012,000 Tons
http://importer.
ec21.com/buy_l
ead/Buy_PET_
Flake-23639026.html
http://www.rec
yclechina.com/l
eads/details803
84.htm
http://importer.
ec21.com/buy_l
ead/Buy_PET_
Flakes-23490861.html
96,000 Tons
http://www.fuzi
ng.com/vli/001
458c42250/PET
-Flakes
KOREA
RUSSIA
7
Steve Hong
8
Optuniversal
Llc
Business
Type
Location
Manufacturin
g
Busan, Korea
Main
Products:
Size (based
on):
Annual
Turnover
Number of
Employees
Main Markets
PET Fibre
Product
Quality
Selling Price:
Min Order
(tons)
Annual
Purchase
Volume
Unit Price
Fibre
Reference
http://importer.ec
21.com/buy_lead/
Buy_PET_Flakes
--23656299.html
Company
Name
235 | P a g e
HONGKONG
USA
INDIA
10
N/A
N/A
11
Rushabh
International
12
Zen Fasteners
Manufacturer
Manufacturer
Manufacturer
Russia
Hongkong
Manufactur
er
Flowery
Branch
Georgia,
USA
Trading
Company
Delhi, India
India
5-50
3,600 Tons
6,000 Tons
http://europe.bloo
mbiz.com/default
.cgi/action/viewc
ompanies/compa
nyid/992656/
Clear, White
PET
Clear,
White PET
Clear, White
PET
2,400 Tons
432 Tons
600 Tons
US $991 / MT
US $1212 /
Metric Ton
http://www.recycle.
net/cgibin/exview.cgi?item
=LW1100258&w=0
1
http://www.rec
ycle.net/cgibin/exview.cgi
?item=LW110
1102&w=01
$600-700/
Ton
http://globalbuyer
sonline.com/trade
leads/details.asp?
xpyr=702341&ob
j=SGDFGDFUJJ
453BJHJ34JVBJ
BJ234BJ5H
http://www.recycl
einme.com/rimzenfast19/buyoffe
r-23819.aspx
Name
Location
Selling Price /
Kilograms
MAA Junkshop
BCA-A
Junkshop
Ma-a
Ma-a
18.00
230
Dom's Junkshop
Ma-a
Cabaguio, Agdao
Proper
Brgy. Gov.
Vicente Duterte,
R.Castillo High
way Agdao
17.00
150
20.00
167.5
Rosita Junkshop
Mookey Metal
Supply
Kobe Junkshop
Marky Junkshop
Esben Junkshop
Nieves Junkshop
BCY Junkshop
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13.00
Kilograms of
PET bottles
sold per week
31.25
Willing to
Sell for a
higher
price?
yes
yes
yes
yes
1,800-2,200
kilograms/ 2 weeks
18.00
1,000
Agdao
Erlinda St.
Landmark
18.00
3,250
22.00
166.67
Km. 13 Panacan
Km. 13 North
Diversion Road
Panacan
17.00
400
Km. 13 Panacan
Collection/ selling
period
18.00
19.00
1,000
1,250
yes
1,300 kilograms/ 2-3
times a week
2,000 kilograms/ 3
months
1,600 kilograms/
month
2,000 kilograms/ 2
weeks
1,200-1,300
kilograms/ week
yes
yes
yes
yes
yes
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Partnership
shall
be
ARTICLE III . That the names, citizenship and residence of the partners of the said
partnership are as follows.
Name
Citizenship
Residence
_______________
___________
__________________________
_______________
___________
__________________________
_______________
___________
__________________________
ARTICLE IV. That the term for which said partnership is to exist is _______
(___) years from the original recording of the said partnership by the Securities and Exchange
Commission.
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ARTICLE V. That the purposes for which said partnership is formed are as follows:
ARTICLE VI. That the capital of this partnership shall be One Hundred Thousand
Pesos, Philippine Currency contributed in cash by the partners as follws:
Name
Amount Contributed
__________________________
__________________________
__________________________
TOTAL
__________________
__________________
__________________
That no transfer which will reduce the ownership of Filipino citizens to less than the
recquired percentage of capital shall be recorded in the proper books of the partnership;
ARTICLE VII. That the profits and losses shall be divided pro-rata among the partners;
ARTICLE VII. That the firm shall be under the management of
_____________________________________as General Manager and as such he/she shall have
charge of the management of the affairs of the partnership.
ARTICLE IX. That the partners undertake to change the name of the partnership
immediately upon receipt of notice or directive from the Securities and Exchange Commission
that another partnership, corporation or person has acquired a prior right to the use of that name
or that the name has been declared misleading, deceptive, confusingly similar to a registered
name, or contrary to public morals, good customs or public policy .
IN WITNESS WHEREOF, we have hereunto set our hands this ________ day of
_______ 2014 at ______________, Philippines.
_________________________
TIN
_______________________
TIN
________________________
ACKNOWLEDGEMENT
CTC. #
Date/Place Issued
Known to me and to me known to be the same persons who executed the Foregoing
Articles of Partnership, and they acknowledged to me that the same is their voluntary act and
deed.
WITNESS MY HAND AND SEAL on the date first above written.
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330,000.00
120.00
50.00
115.00
40,000.00
48,000.00
Land
Building
88,000.00
50,646.00
507.00
30.00
2,688.00
330.00
600.00
150.00
50.00
60.00
258.00
55,319.00
473,604.00
(Land and Building Assets are subject to this amount, which are already included in their costs.)
Construction-Related Permits and Fees
Obtain Lot plan with site map
Notarized the locational clearance application form
Obtain Locational clearance from CPDO ( P1.5 per square meter + P300)
Fire Safety Evaluation Clearance ( 0.1% of estimated project cost)
Building Permit
Validation from CPDO Zoning Administrator
Certificate of Occupancy
Fire Safety Inspection Certificate
Application for Water Connection
Total Construction-Related Fees
36
The World Bank Group, Doing Business in the Philippines, Davao City, 2014
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500.00
100.00
2,400.00
63,500.00
37,400.00
75.00
5,548.00
555.00
3,000.00
113,078.00
Bibliography:
Lumawag, R. J (August 8, 2014) . Davao 4th in most competitive cities. Retrieved from
http://www.sunstar.com.ph/davao/business/2014/08/08/davao-4th-most-competitivecities-358650
Hopewell, J., Dvorak, R., & Kosior, E. (2009) . Plastics recycling: challenges and opportunities.
Abstract retrieved from http://rstb.royalsocietypublishing.org/content/364/1526/2115.full
Retech Recycling Technology AB. (2002) . PET 700 PET Bottle Recycling Plant. Retrieved
from
http://pasmand.tehran.ir/LinkClick.aspx?fileticket=bBoVT5rJfkY%3D&tabid=324&mid=88
2&language=en-US
Tecnon OrbiChem. (2014) . Synthetic Fibres Raw Materials Committee Meeting at APIC 2014.
Retrieved From http://www.apic2014.com/download/SF%204%20APIC2014_Global%20Fibers%20Overview.pdf
255 | P a g e
Neves, M., Trombin, V., Lopes, F., Kalaki, R., & Milan, P (2012) World Consumption of
beverages. Retrieved from http://link.springer.com/chapter/10.3920/978-90-8686-739-4_31
HIS Pressroom. (2014) . Rising fiber and packaging demand in developing countries keeps
global polyester markets growing while demand flattens in north America and Europe.
Retrieved from http://press.ihs.com/press-release/chemicals/rising-fiber-and-packagingdemand-developing-countries-keeps-global-polyeste
National Association for PET Container Resources (NAPCOR). (2014) . What is PET?.
Retrieved from http://www.napcor.com/PET/whatispet.html
Global Environment Centre Foundation. (2011) . Waste Recycling Technologies and Recycling
Promotion Initiatives in Eco-towns in Japan. Retrieved from
http://nett21.gec.jp/Ecotowns/data/et_a-03.html
Dongguan Yinghao Machinery Co., Ltd. Quotations of plastic bottle recycling line (Capacity:
500kg700kg).
Davao Light & Power Co. (2014) . Monthly Rates per schedule. Retrieved from
http://www.davaolight.com/index.php?view=article&catid=45%3Amonthly-rateschedule&id=2071%3Amonthly-rates-per-schedule-from-january-to-august2014&option=com_content&Itemid=76
256 | P a g e
South Staffs Water. Water use in your business. Retrieved from http://www.south-staffswater.co.uk/publications/your_business/WaterUseBusiness.pdf
National Wages and Productivity Commission. (2014) . Minimum Wages Rates by Sector and
Region, Philippines. Retrieved from
http://www.bles.dole.gov.ph/PUBLICATIONS/Current%20Labor%20Statistics/STATISTI
CAL%20TABLES/PDF/tab24.pdf
Philippine Development Plan 2011-2016. (2013) . Chapter 3 Competitive Industry and Services
Sectors. P.62. Retrieved from: http://www.neda.gov.ph/wpcontent/uploads/2013/09/CHAPTER-3.pdf
The World Bank Group. (2014) . Doing Business in the Philippines, Davao City. Retrieved from
http://www.doingbusiness.org/data/exploreeconomies/philippines/sub/davao-city/#startinga-business
Ballada, W. (2010) . Partnership and Corporation Accounting. Chapter 9 Other Topics: Analysis
of Financial Statements.
BizMiner. (2012) . Free business statistics and financial ratios. Retrieved from
http://www.bizstats.com/about.php
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