JobsAvenueManpowerAgency PDF

Ateneo de Davao University
School of Business and Governance

E. Jacinto St., Davao City
A Feasibility Study of Manpower Agency in Davao City

(Jobs Avenue Manpower Agency)
In Partial Fulfillment of the Project in

Acc 12 Management Consultancy
Submitted to:
Rhea Jane Carpio, CPA
Management Consultancy (MAS) Instructor
Submitted by:
Abarquez, Hazel Mark
Cabarlo, Cavin Jhon
Cubil, Sigrid
Raz, Aeryl
Tuquib, Nikka Angela
BSA 5A
September 2014
JOBS AVENUE MANPOWER AGENCY |i
Acknowledgment
The consultants would like to express their utmost gratitude and appreciation to the
following people who played an important role in helping the consultants accomplish this project
feasibility study:
To God, for granting His most loving presence as the proponents complete the study and
for granting the grace of enlightenment, strength, cooperation, knowledge, humility and wisdom as
the proponents make this study;
To our dear parents, for the encouragement, inspiration, financial support and unending
understanding they have given throughout the study;
To Maam Rhea Jane V. Carpio, CPA, for her genuine guidance, care and her great efforts
in supervising and leading the consultants in accomplishing this fine work;
To Mr. and Mrs. Mark Abarquez, for their warm hospitality and for sharing everything
that they have to offer including their home and food;
To Mr. Andres L. Recones of ANLEO Maintenance and Allied Services Janitorial
and Manpower Services, for enlightening the consultants about the nature of manpower agency
industry and for allowing them to acquire valuable data;
To Miguelitos Manpower and Allied Services, and Jobs Care Agency, for welcoming
the consultants in their respective offices, for granting them their time for an interview and for
allowing them to obtain ample knowledge about the service processes of a manpower agency;
To Ms. Nazareth Nabo, for accommodating the consultants and helping them contact
manpower agencies in Davao City;
J O B S A V E N U E M A N P O W E R A G E N C Y | ii
To Region XI Department of Labor and Employment, City of Davao Business

Bureau, and Public Employment Service Office, for giving the consultants essential statistical
data on employment, for responding to their requests and for giving the proponents their time to
explain matters that are relevant to the study;
To all of those who supported the consultants in any respect during the completion of the
project.
J O B S A V E N U E M A N P O W E R A G E N C Y | iii
List of Tables
Table 2.1 Jobs and Market Segment
Table 3.1 Services Offered and Skills Needed
Table 3.2 Monthly Schedule of Orientations and Trainings
Table 3.3 Costing of the Raw Materials Requirement
Table 4.1 Chart of Accounts
Table 5.1 Contributions each Employee Deployed
Table 5.2 Total Contributions based on the Number of Deployed Employees
Table 6.1 The Project Schedule
List of Graphs
Graph 2.1 Excess Vacancies for 2012, 2013, and 2014
Graph 2.2 Five-Year Excess Vacancies Projection
Graph 2.3 Applicants for year 2012, 2013 and 2014
Graph 2.4 Five-Year Excess Applicants Projection
Graph 2.5 Supply and Excess Demand of Jobs in Davao City for the years 2012, 2013 and 2014
Graph 2.6 Five-Year Projection of Supply and Excess Demand of Jobs in Davao City
Graph 4.1 Service revenue, cost of services and gross profit
Graph 4.2 Salaries and wages
Graph 4.3 Total Expenses
Graph 4.4 Net Income/(Loss)
Graph 4.5 Current Ratio
Graph 4.6 Average Revenue per Day
Graph 4.7 Asset Turnover
Graph 4.8 Debt Ratio
Graph 4.9 Asset-to-equity
Graph 4.10 Debt-to-equity
Graph 4.11 Gross Profit Margin
J O B S A V E N U E M A N P O W E R A G E N C Y | iv
Graph 4.12 Return on Revenue

Graph 4.13 Return on Total Assets
Graph 4.14 Return on Capital
List of Illustrations
Illustration 3.1 Procedure for Hiring
Illustration 3.2 The Service Process Between the Agency and the Client
Illustration 3.3 The Business Process
Illustration 3.4 Office Location
Illustration 6.1 The organizational chart
JOBS AVENUE MANPOWER AGENCY |v
Table of Contents
Acknowledgment ........................................................................................................................................... i
List of Tables ................................................................................................................................................ iii
List of Graphs ............................................................................................................................................... iii
List of Illustrations ........................................................................................................................................ iv
Chapter 1....................................................................................................................................................... 1
A. Name of the Project.............................................................................................................................. 1
The Logo ................................................................................................................................................ 1
B. Location ................................................................................................................................................ 2
C. Descriptive Definition of the Project .................................................................................................... 2
Importance ............................................................................................................................................ 2
Financial ................................................................................................................................................ 3
Workforce ............................................................................................................................................. 4
D. Projects Long-range Objectives ........................................................................................................... 4
Our Vision.............................................................................................................................................. 4
Our Mission ........................................................................................................................................... 5
E. Feasibility Criteria ................................................................................................................................. 5
Market Feasibility.................................................................................................................................. 5
Technical Feasibility .............................................................................................................................. 5
Financial Feasibility ............................................................................................................................... 6
Socio-economic Feasibility .................................................................................................................... 6
Organization and Management Feasibility ........................................................................................... 6
F. Highlight of the Project ......................................................................................................................... 7
History ................................................................................................................................................... 7
Nature ................................................................................................................................................... 7
Mode of financing ................................................................................................................................. 7
Investment Costs................................................................................................................................... 8
G. Major assumptions and summary of findings and conclusions............................................................ 8
Market Feasibility.................................................................................................................................. 8
Technical Feasibility .............................................................................................................................. 8
J O B S A V E N U E M A N P O W E R A G E N C Y | vi
Financial Feasibility ............................................................................................................................... 9
Socio-Economic Feasibility .................................................................................................................. 10
Management Feasibility...................................................................................................................... 10
Conclusion and Recommendation ...................................................................................................... 11
Chapter 2..................................................................................................................................................... 12
A. Service Description ............................................................................................................................. 12
B. Market Description ............................................................................................................................. 13
C. Demand............................................................................................................................................... 14
D. Supply ................................................................................................................................................. 16
E. Demand-Supply Analysis..................................................................................................................... 19
F. Price Study .......................................................................................................................................... 21
G. Marketing Program ............................................................................................................................. 25
Chapter 3..................................................................................................................................................... 26
A. Service Process ................................................................................................................................... 26
A.1. Agency and Applicants ................................................................................................................. 26
A.2. Agency and Clients....................................................................................................................... 31
B. Machinery and Equipment ................................................................................................................. 34
C. Furniture and Fixture .......................................................................................................................... 37
D. Office Location .................................................................................................................................... 42
E. Office Layout ....................................................................................................................................... 43
F. Supplies Requirement......................................................................................................................... 44
G. Utilities ................................................................................................................................................ 45
H. Waste Disposal.................................................................................................................................... 45
Garbage bins ....................................................................................................................................... 45
Physical wastes ................................................................................................................................... 45
Classification of garbage ..................................................................................................................... 46
I. Service Cost......................................................................................................................................... 47
J. Labor Requirements ........................................................................................................................... 49
Chapter 4..................................................................................................................................................... 52
A. Major Assumptions ............................................................................................................................. 52
B. Total Project Cost................................................................................................................................ 57
C. Initial Working Capital Requirements ................................................................................................. 58
J O B S A V E N U E M A N P O W E R A G E N C Y | vii
Cash policy .......................................................................................................................................... 58
Credit Policy and Receivable Management ........................................................................................ 58
D. Alternative Sources of Financing ........................................................................................................ 58
External financing ............................................................................................................................... 58
Internal financing ................................................................................................................................ 58
E. Sources of Financing the Project ........................................................................................................ 58
F. Chart of Accounts ............................................................................................................................... 60
G. Pro-forma Financial Statements ......................................................................................................... 64
H. Financial Analyses ............................................................................................................................. 103
Financial Ratios Analysis ................................................................................................................... 120
Capital Budgeting Analysis ................................................................................................................ 130
I. Accounting and Control Plan ............................................................................................................ 131
Chapter 5................................................................................................................................................... 133
Employment and Income ...................................................................................................................... 133
Economy................................................................................................................................................ 134
Tax.. .................................................................................................................................................... 135
Millennium Development Goals ........................................................................................................... 136
Chapter 6................................................................................................................................................... 137
A. Basic Consideration in Forming the Organization ............................................................................ 137
Basic Requirements (SEC Requirements).......................................................................................... 137
Requirement for Application/Renewal (DOLE Requirements) ......................................................... 137
Authority to Recruit (DOLE Requirements)....................................................................................... 138
Forms from the Business Bureau ...................................................................................................... 139
Forms from the Securities and Exchange Commission ..................................................................... 139
Forms from the Social Security System............................................................................................. 139
Forms from the Barangay ................................................................................................................. 139
Forms from the Bureau of Internal Revenue .................................................................................... 139
Forms from the City Hall ................................................................................................................... 140
Code of Business Conduct and Ethics ............................................................................................... 140
B. Form of Ownership ........................................................................................................................... 141
Advantages........................................................................................................................................ 142
Disadvantages ................................................................................................................................... 142
J O B S A V E N U E M A N P O W E R A G E N C Y | viii
C. Organizational Chart ......................................................................................................................... 142
D. Officers and Key Personnel ............................................................................................................... 143
E. Project Schedule ............................................................................................................................... 146
APPENDICES .............................................................................................................................................. 149
Sample Client-Employee Contract ........................................................................................................ 149
Sample Client-Agency Contract ............................................................................................................ 151
Application Form for DOLE Registration of Manpower Agencies ......................................................... 153
Wage Order ........................................................................................................................................... 154
Forecasted Demand .............................................................................................................................. 159
Forecasted Supply ................................................................................................................................. 160
Letter to the Department of Labor and Employment........................................................................... 161
Code of Ethics ....................................................................................................................................... 162
Letter to the Business Bureau ............................................................................................................... 164
DOLEs Capital Requirement and Implementation of the 10% Administrative Overhead Cost ........... 165
Payback Period ...................................................................................................................................... 185
Net Present Value ................................................................................................................................. 186
Weighted Average Cost of Capital ........................................................................................................ 187
Internal Rate of Return ......................................................................................................................... 188
Sample Flyer .......................................................................................................................................... 189
Sample Newspaper Advertisement ...................................................................................................... 190
Inflation Rate Source............................................................................................................................. 191
BIBLIOGRAPHY .......................................................................................................................................... 192
Proposal Letter .......................................................................................................................................... 194
JOBS AVENUE MANPOWER AGENCY |1
Chapter 1
Summary of Project
A. Name of the Project

Jobs Avenue Manpower Agency will be the name of the project.
Aside from being easy to remember, the proponents chose this name to create a direct
representation of the company which is to become the Avenue for jobseekers and employers to
connect. It sends a message to employees and employers of what the business is about in a friendly
manner and without being intimidating. The company name becomes an important aspect of the
business because it helps establish the identity of the company and it is representative of the goals of
the business which is to provide high quality services to their clients. The name is simple yet formal
and it tells immediately what the company is about.
The proponents also want this name to make an impression of being an approachable
manpower agency where people with different experiences and employment backgrounds can
advance with. At the same time, the name would also promote a sense of formality with prospective
business clients.
The Logo
B. Location
Since the company intends to acquire clients and transact with them at their place of
business or wherever is more convenient for them, the location does not pose too much of an
importance. But still, the proponents chose to have an office space along the highway located at
Uncle Mark Building, Quimpo Boulevard, Ecoland, Davao City, to make it more convenient for
possible jobseekers to locate. The area size of the office space is thirty square meters costing seven
thousand five hundred pesos per month.
C. Descriptive Definition of the Project

The project is focused on establishing a manpower agency in Davao City. The proposed
manpower agency will offer services such as janitorial, housekeeping, laundry, kitchen, warehouse
and clerical.
Jobs Avenue Manpower Agency will be a service type of business. It will be established to
provide manpower or employees to clients. Aside from recruitment, such business will also conduct
training and development to personnel. According to the Department of Labor and Employment
(DOLE), the establishment of a manpower agency handled by partners or shareholders has a capital
requirement of at least Php 3,000,000 and a registration fee of Php 25,000. However, for a sole
proprietor, aside from the registration fee, the substantial capital requirement is a net worth (Assets
less Liabilities) of Php 3,000,000. A manpower agency may offer a number of services; however, an
agency may limit its services depending on its capacity to fully perform its obligations to its clients.
Importance
Jobs Avenue Manpower Agency will also be a contractor type of business which will act as a
recruitment and manpower service provider of other organizations, thus, connecting employers and
job seekers from all around Davao City. A manpower agency, in general, is both valuable to job
seekers and employers.
Contracting manpower services provides significant advantages to an
organization. The function of a manpower agency to conduct recruitment, screening, selecting and
training personnel provides a cost reduction to the client. Here in Davao City, small and big
businesses are emerging; acquiring manpower through agencies prevents the need to hire individuals
in-house; hence operational cost are lessened by a great extent through the existence of manpower
agency. Flourishing and well-established business can concentrate on their core activities and
business objectives rather than investing business resources on non-core activities since the service
provider will be responsible for managing the workforce as well the compliance of existing labor
laws.
On the part of job seekers, a manpower agency provides an avenue for them to find job in a
systematic and orderly manner. The role of the agency is to find the right recruits for specific
clients, thus, avoiding the risk of job-mismatch. Davao City is a home of competent workforce,
channeling the citys labor force through manpower agencies provides an opportunity for them to
develop and compete in todays world of employment by way of trainings and seminars which, in
turn, creates a competitive advantage in the delivery of our services. Finally, a manpower agency
helps ensure the applicants welfare by complying with all government regulations; and it becomes
more convenient for government agencies, like the Department of Labor and Employment, to
monitor the welfare of the employees in Davao City area.
Financial
For investment requirements, as mandated by the Department of Labor and Employment
through Department Order No. 18-A series of 2011, a minimum capitalization of Php 3,000,000 is
necessary for legitimate subcontractors of partnership type of business. Additionally, the payment
of a Php 25,000 registration fee is mandatory.
For matters concerning income, the DO18-A sets a standard administrative fee of at least
ten percent (10%) based on the total contract cost and not of the total contract price. To calculate
for the contract cost, amounts regarding payment of wage and wage-related benefits including
employees social welfare benefits are considered.
In addition, the Department Order No. 18-A series of 2011 has been issued to eliminate flyby-night contactors, and to preclude the race-to-bottom competition wherein different agencies
will be further lowering their prices to become competitive. This will detrimentally affects the wages
and benefits of workers, among contractors.
Workforce
The people behind the project will be mostly composed of the persons in the administration
of the partnership, with their staff. The administration will be composed of the administration
manager, operations manager, finance manager and legal consultant. The administration department
is charged with the marketing activities and the usual day-to-day operations including contacting the
client. Those who comprise the operations personnel are the human resource experts and industry
agents. They are responsible for the recruitment process as well as the management of the workforce
deployed to clients.
The finance department is accountable for the management of financial
transaction of the business both with the employees and the client. The legal consultant would be
on an on-call basis providing advice on the contracts entered into by the agency. The staff will
include the receptionists and liaison officers charged with receiving applicants, remitting the
contributions to different government owned and/or controlled corporations as well as performing
clerical tasks.
D. Projects Long-range Objectives

In the next ten (10) years:
1. Jobs Avenue Manpower Agency will be the leading manpower agency in terms of clients and
employees in all areas of Davao.
2. Jobs Avenue Manpower Agency will answer the manpower needs of emerging businesses in
Davao City.
3. The agency will establish a reputable name as an edge provider of competent, efficient,
effective, and accurate workers.
4. Services rendered will substantially increase by 10% per year.
5. A considerable growth in Return on Assets of 5% per year.
6. Increase in market share in catering other industries aside from major clients identified
malls, schools, and hotels.
Our Vision
Jobs Avenue Manpower Agency envisions itself to be the leader in the manpower agency
industry in the Philippines; to be the epitome of transparency, excellence, and high standards among
manpower agencies; to be known as an agency which offers and delivers to its clients quality services
of its kind; to open best jobs and bridging opportunities for Filipinos as per to their qualifications;
and, to help improve and contribute to the long-term growth of the country.
Our Mission
Jobs Avenue as a manpower agency commits to uphold the Standards of Professionalism
such as competency, integrity, and moral values in providing human resources in Davao City; and to
be known for honest and transparent dealings that will set us apart from other service provider in
the recruitment field.
E. Feasibility Criteria
Market Feasibility
The enterprise has a specific target market, focusing on local employment.
The enterprise has a potential set of clients because of the increasing demand for manpower
services in view of the emergence of new businesses and growth of the existing companies.
The enterprise has enough supply of potential employees in the labor market.
The fees and rates are not substantially different from other manpower agencies.
The fees and rates are flexible in order to accommodate the clients needs and to cater to the
clients capacity to pay.
Technical Feasibility
There are readily available supplies and sufficient access to resources.
There is availability of replacement in case of loss and damage of office Equipment, and
furniture and Fixture.
The office is easily accessible to the clients and employees.
The office shall be located along the highway, secured and in accordance with the zoning
policies and regulations of the city.
There should be a well-designed database management information system which will be

outsourced from a software vendor in place in order to optimize the processing of agency
transactions and the keeping of client and employee records
There shall be effective office space utilization for the furniture, Fixture and supplies.
Financial Feasibility
The enterprise shall comply with the required capital requirement of three million pesos as
imposed by the Department of Labor and Employment.
Sources of financing shall come from fixed amounts of investment provided by willing
investors.
It is expected to recover its investment within five (5) years, using the net present value
method. Losses during the first few years are acceptable. Return on Revenue of -20% is
considered an acceptable loss for the first year.
Socio-economic Feasibility
The enterprise shall be beneficial to both the client and the employee.
The enterprise shall provide jobs not only to college degree graduates but also to those who
were not able to acquire sufficient education. Extensive training programs will be provided
to employees before being deployed to assure quality service is being rendered to clients.
The enterprise shall provide sufficient manpower pooling for the specific manpower
requirements of the client.
The enterprise shall contribute to the development of economy through the taxes it will pay,
the prevention of job mismatch and the increase in worker productivity.
Organization and Management Feasibility
The business venture must hire at least nine employees, including the partner who will
perform the duties of an administration manager, to perform the different functions within
the organization.
The enterprise must be in compliance with the labor laws.
The labor force of the organization must have the necessary expertise and technical
proficiency in the performance of their jobs.
The manpower agency shall oversee the proper deployment of employees, monitor
employee attendance, evaluate job performance, implement control procedures and guide
the employees in helping to achieve the objectives of the organization.
F. Highlight of the Project
History
The emergence of the outsourcing industry has become in demand which prompted the
proponents to venture in this industry. Aside from that, this project would be able to address
unemployment and job mismatch in Davao City.
Nature
Jobs Avenue Manpower Agency will be a service type of business that matches employers to
employees. It targets to answer the continually rising manpower needs of developing and expanding
companies all over Davao City.
Jobs Avenue will break down the multitude structures of searching, helping clients to
concentrate on their core business objectives rather than undergoing all the complexity of the
process.
It will also provide clients with the answers to their manpower needs by raising
productivity through improved quality, cost-reduction and efficiency benefit while delivering the
service contract requirements and recruitment needs of clients while also ensuring the applicants
welfare by complying with all government regulations.
Mode of financing
Since the business is a partnership, the partners will provide the financing for this project.
Alternatively, the partners may obtain a personal loan from a bank to support the investment.
Preferably, the interest rate on this loan is equal to or less than fifteen percent per annum. The loan
is payable for a period of three years under an annual installment payment scheme. These terms
would be deemed advantageous because of its high probability to be paid without default.
Investment Costs
The partners would be required to invest a total of at least Php 3 million for this project.
This is in accordance with one of the requirements set by the Department of Labor and
Employment (DOLE). This amount can be utilized to pay start-up costs and other necessary
expenses to set up the project.
G. Major assumptions and summary of findings and conclusions
Market Feasibility
The contract rate comprises mainly of: a) payment to employees deployed, b) employers
contribution, c) ten percent (10%) administrative overhead, and d) twelve percent (12%) valueadded tax. The payment to employees deployed consists of employees basic pay, cost of living
allowance (COLA), 13th month pay, and five (5) days service incentive leave pay. The employers
contribution consists of statutory contributions such as Social Security System (SSS) contribution,
PhilHealth contribution, employee compensation (EC), and Pag-IBIG contribution. The ten percent
(10%) administrative overhead is a standard administrative fee set by the Department of Labor and
Employment through Department Order No. 18-A series of 2011. As for the demand and supply of
the project, there is an existing significant amount of unsatisfied demand in the market. And, it is
forecasted that the unsatisfied demand will continue to remain in the market. Also, there is an
existing supply which could satisfy the forecasted demand of the agency. For marketing programs,
the agency will subscribe to a local newspaper for advertising, rely on referrals or word-of-mouth,
make direct proposals to clients, attend public bidding, and heed the assistance of Public
Employment Service Office (PESO) for public dissemination of information.
The proposed business is primarily engaged in advertising jobs for employers, screening
applicants and referring qualified individuals to positions solicited. Essentially, Jobs Avenue
Manpower Agency is a service provider that matches the labor needs of its clients with individuals
who have the skill sets necessary to meet those needs. The services offered by the agency are
janitorial, housekeeping, washer, promo attendant, receptionist, packer, inventory clerk, service crew,
sales clerk and cashier.
The scope of the study does not depend mainly on the geographical location of the business
since clients are acquired through business proposals, biddings and marketing program of the
agency. The consultants assume that the employees deployed are minimum wage earners.
Furthermore, based on the industry standards the consultants assume that the minimum period of
contract between the agency the client is one year.
The enterprise will be renting an office space located at Quimpo Boulevard in between Juna
and Ecoland Subdivisions. The technology required in the operation of the business is Interactive
Recruitment Information System recruitment software. It is specially designed for manpower
agencies. The technology is required for the following purposes:
To keeps track of the following recruitment information: Personal Info, Family Info,
Educational Info, Employment Record, Interview Report, Training Evaluation, Deployment
Record, Complaints and Status Report
To maintain a database of your companys applicants without the hassle of juggling through
volumes of hard copy resumes.
To track application processes according to new application, pending, approved, denied or

cancelled categories.
To do a specific search for previous records without going through rough filing cabinets.
To process thousands of applicant information.
Track payment status of the clients and allows you to check on unpaid services.
Send email resumes directly to clients/principals.
To integrate to companys website to allow data sharing between clients
To generate applicant lists and reports according to the status of the application, position
being applied for, and the date the application was filed.
Also, the office equipment needed to conduct the necessary transactions would include
computers, tables, chairs, office supplies, photocopier machine, LCD projector and landline.
The agency would require a three million peso capital in order comply with government
requirements for recruitment agencies. Personal loans by the partners as well as cash savings will be
J O B S A V E N U E M A N P O W E R A G E N C Y | 10
the sources to finance such business venture. With a prudent estimation of market share of one
percent of excess demand at the commencement of operations and an additional one percent per
year, the agency is expected to be at a loss until the end of the second year. The Agency is expected
to realize income starting on the third year of operations with a steady increase for the succeeding
years. The payback period is estimated to be 8.31 years with a negative net present value as well as a
negative internal rate of return within the first five years of operations. This reflects that the agency
will not be profitable within this period. The current ratio is higher than industry standards and is
greater than 1 indicating its liquidity to be able to meet its current obligations. In addition, Cash
accounts required to be maintained will be Payroll Fund of Php 100,000.00 and Petty Cash Fund of
Php 20,000.00 which will be utilized to make timely payments to their creditor mainly consisting of
different government agencies and contractual employees.
Socio-Economic Feasibility
Manpower agencies are intermediaries that help to address key labor market challenges and
efficient partners of public employment services. Services provided by private employment agencies
contribute to more effective active labor market policies by putting more people to work, facilitating
transitions, and supporting transformation. Manpower agencies improve the ability to match the
supply of labor to demand. As a result, they allow for higher participation rates in employment and
increase the diversity of the labor market. In addition, Jobs Avenue Manpower Agency will become
an engine for job creation by employing agency workers. Next, it facilitates transitions in the labor
market from unemployment to work, from education to work, from household to work and
between different labor contracts. Hence, manpower agencies will provide an important steppingstone to the labor market and help particularly to re-integrate the outsiders into the labor market.
Lastly, the agency will play an important in supporting transformation through enhancing the
employability of workers, particularly by facilitating access to training and by offering the
opportunity to acquire experience in various, different working environments.
Management Feasibility
The type of ownership for this project is partnership. The agency office will consist of one
major position, the administration manager, and two (2) sub-major positions, the financial manager
and operations manager; each having their distinct function. The administration manager, who is
one of the existing partners of the business, will head the agency. Under the operations manager are
three (3) training personnel. A receptionist and two (2) liaisons, under which lies the employees
deployed, lies beneath the organizations structure. Also, the agency will heed the expertise of a legal
consultant however the consultant shall only be outsourced rather than hired.
Conclusion and Recommendation

Considering the market, technical, financial, socio-economic and management feasibility, the
main objective of this study was to set out to explore the concept of putting up a manpower agency
entitled Jobs Avenue Manpower Agency. Given this objective, the study establishes the existence of
a market demand which the proposed project aims to cater to. Moreover, the technical aspect of the
study depicts probable process and requirements which can be satisfied. Accordingly, the financial
aspect depicts a payback period of more than 8 years and both negative net present value and
internal rate of return. Although unfavorable, the profit is expected to increase for the continuing
years. The prudent estimate of market share and the statutory capital requirement of Php
3,000,000.00 yielded unfavorable figures. However the outcome of the study shows that the business
venture will yield desirable financial ratios which will support the continuance of the agency in the
long run.
It is highly recommended that the company should strive for a higher market share than
estimated. This could be done by increasing efforts for marketing strategies, widening services
offered, driving down costs and expenses, cultivating a good reputation and company image and
efficiently managing and utilizing administrative and deployed employees.
Chapter 2
Market Feasibility
A. Service Description
Jobs Avenue Manpower Agency offers a wide range of manpower services focusing on bluecollared professionals such as the following:
Janitorial; includes janitors, garbage collectors, maintenance and utility crew
Housekeeping; includes housekeeper, helper, and room attendant
Packer; includes baggers, packer, bundler, sorter, and checker
Food Court Crew; includes food attendant, and kitchen staff
Inventory Clerk; includes inventory staff control and stock clerk
Washer, Dishwasher, Laundry Worker
Promo attendant; includes promo boys/girls, promodiser, and promo merchandiser
Receptionist; includes receiving staff, and lounge lady
Restaurant Staff; includes waiter/ waitress, and dining crew
Sales Clerk; includes sales attendants, sales demo, sales helper and saleslady/ salesman
Service Crew; includes store crew and storekeeper
Cashier; includes counter person
Clerk
The agencys full spectrum of customized HR services includes full outsourced solutions,
administration, payroll processes, recruiting, pre-screening, testing and interviewing. These services
are designed to free the clients internal resources from transactional activities, moving them to
higher value strategic functions. The agency hopes to contract with different commercial
establishments such as schools, malls, and hotels all over Davao City.
B. Market Description
The major clients of the service consist of but not limited to the various establishments in
Davao City. These establishments that compose the majority of the target market include hotels,
malls, schools, restaurants, warehouses, factories and other offices. Data from the Department of
Labor and Employment (DOLE) showed that there is an excess demand in Region XI and part of
which is assumed the market share of the business.
The different jobs have a designated market segment. These are as follows:
Jobs
Market Segment
Janitorial
All business establishments
Packers, promo attendant, sales clerk, cashier
Malls
Service crew, maintenance and utility worker
Warehouses and Factories
Housekeeping
Hotels
Food court crew
Malls and Schools
Inventory Clerk
Malls and Warehouses
Washer, Dishwasher and Laundry Worker
Hotels and Schools
Receptionist
Hotels and Malls
Restaurant Staff
Malls and Restaurant
Bartender
Restaurant
Clerk
Malls and Offices
Delivery crew
Offices
Table 2.1 Jobs and Market Segment
C. Demand
Jobs Avenue Manpower Agency will focus on the area of Davao City. The ventures target
market will be primarily composed of different business/commercial establishments within Davao
City. These said establishments will be those which have solicited vacancies through the Department
of Labor and Employment (DOLE). The solicited vacancies will consist of the excess demand in the
Davao market which will be the target market of Jobs Avenue Manpower Agency.
Based on the statistical data given by DOLE, there exist unsatisfied demands or excess
vacancies for the past two (2) years plus the inclusion of 2014s data.
The forecasting technique employed by the proponents is the moving average approach
using the 2012, 2013, and 2014 data. This data smoothing method takes into account the behaviour
of the data for each year since the data provided is highly fluctuating. Moreover, the moving average
forecasting technique is appropriate for projecting employment data.
The moving average approach analyses data points by creating a series of averages of the
different subsets of the full data set, filtering the irregularities of the past data in order to identify the
trend direction of the forecast. Hence, the moving average technique has been chosen as the most
appropriate forecasting method. The process requires the immediate preceding three-year data to be
averaged. See Appendix E for the composition of the historical data and demand forecast.
Excess Vacancies for 2012, 2013, and 2014

12000
10613
10000
8000
6564
6000
3595
4000
2000
0
2012
2013
2014
Graph 2.1 Excess Vacancies for 2012, 2013, and 2014

As shown in Graph 2.1, there is a 45.23% decrease for excess vacancies from year 2012 to
year 2013. However, for the following year, there is a surge of 195% for excess vacancies. The
decrease for job vacancies is attributable to the increase of newly formed manpower agencies in the
city which contributed for the placements of jobseekers, filling in for the existing job vacancies
reflected in the past year. The sudden increase is due to the continuing constructions of
infrastructures, specifically malls and hotels in the city which will be necessitating more labourers
especially those that the Agency offers.
Five-Year Excess Vacancies Projection

8500
8194
8000
7387
7500
7000
6924
7542
7044
6500
6000
2015
2016
2017
2018
2019
Graph 2.2 Five-Year Excess Vacancies Projection

In the graph presented above, the demand is projected based on the behaviour of the
previous data gathered for year 2012 2014. Using the moving average method, excess demand for
2015 is expected to reduce by 34.76%; for 2016, is expected to increase by 1.73%; for 2017, is
expected to increase by 16.33%; for 2018, is expected to reduce by 9.85% and; by 2019, is expected
to increase by 2.1%. As observed, it is expected that the excess demand will have a minimal increase
for two (2) years, then a sudden upsurge of excess demand for the following year, followed by an
abrupt decrease. The projections for excess vacancies reflected are fluctuating but it remains to be
high.
D. Supply
There are approximately 89 locally operating manpower agencies in Davao City. These
agencies are able to cater to the existing demand and supply of workforce. The supply data provided
by DOLE for the past three (3) years (2012 to 2014) shows the number of applicants who registered
under DOLE. Through this data, the proponents infer that there is still an existing supply of labor
force despite the job vacancies stated above. Thus, there is a need for an additional manpower
agency to manage such.
Applicants for 2012, 2013 and 2014

3000
2621
2500
2000
1500
1000
1008
997
500
0
2012
2013
2014
Graph 2.3 Applicants for year 2012,2013 and 2014

In the year 2012 to 2014, there are extreme fluctuations in the number of blue-collared
applicants who registered. For the year 2012, there are 1008 registered applicants which increased by
160% in 2013. This rapid growth in applicants is attributable to the increase of Public Employment
Service Offices (PESO). PESO is tasked to carry out full employment and equality of employment
opportunities for all, and for this purpose, to strengthen and expand the existing employment
facilitation. This indicates that the number of possible workforce that needed to be managed
doubled in size, due to the growth of business establishments such as malls, condominiums and
hotels. By year 2014 the number of applicants declined by 61.96%, yet it remains to be significant.
Five-Year Applicants Projection

2000
1800
1600
1720
1542
1420
1400
1561
1567
2018
2019
1200
1000
800
600
400
200
0
2015
2016
2017
Graph 2.4 Five-Year Excess Applicants Projection

Using the past data in projecting the supply for the next five years, a significant number of
registered applicants remain to be consistently present. There is a 34.76% decrease in 2015, 1.73%
increase in 2016, 16.33% increase in 2017, 9.85% decrease in 2018 and a 2.1% increase in 2019.
Future projections suggest stability in the number of applicants. This implies a constant supply for
Jobs Avenue Manpower agency. See Appendix F for the composition of the historical data and the
supply forecast.
E. Demand-Supply Analysis
Supply and demand are based from the Department of Labor and Employment (DOLE).
Projections were made using the moving average method.
Supply and Excess Demand of Jobs for 2012,2013 and 2014

12000
10613
10000
8000
6564
Supply
6000
Demand
3595
4000
2621
2000
1008
997
0
2012
2013
2014
Graph 2.5 Supply and Excess Demand of Jobs in Davao City for the years 2012, 2013 and 2014
The graph above shows a juxtaposition of the total demand and supply of jobs in Davao
City. These jobs will be offered by the proposed business. As illustrated, the demand exceeds the
supply for each year, which remains to be unsatisfied in the past three years. This may be because of
the continuing job mismatch, that is, jobseekers were not able to find the right employers who will
utilize their skills and enable them to have the work they look for.
5-Year Projection of Supply and Excess Demand

9000
8194
8000
6924
7000
7542
7387
7044
6000
5000
Supply
4000
Demand
3000
2000
1542
1720
1420
1561
1567
1000
0
2015
2016
2017
2018
2019
Graph 2.6 Five-Year Projection of Supply and Excess Demand of Jobs in Davao City
The forecasted supply and demand has been steady due to the forecasting method used.
However, based on the graph shown, it is projected that the demand of all the jobs will continue to
be unsatisfied for the next five years. Therefore, the agency will be implementing a skills training and
development program wherein the applicants will undergo this special seminar/workshop for them
to be competent and fit for what the clients will be needing or requiring. This training program will
be designed to alleviate the continuing problem of job mismatch that persists in the labor market.
On the other hand, the increase in supply may be due to the implementation of the K-12 education
program wherein students will be able to work without finishing college and will gain more
competitive skills that will enable high school graduates for blue collar jobs. In addition, there is also
the anticipated ASEAN integration wherein all ASEAN nations will open its market to foreign
trade. With this, more jobs will be offered in the country causing blue collar jobs to be in demand
since more businesses in various industries, in which manpower takes a large percentage in human
resource, are expected to be established in various parts of the country especially in Davao City.
F. Price Study
As a manpower agency, Jobs Avenue generally has no control on the setting of the rates for
the basic pay, 13th month pay, 5 days service incentive leave pay, cost of living allowance.
Employers contributions to the Social Security System, Philippine Health Insurance Corporation
and Home Development Mutual Fund are also subject to the schedule of contributions as mandated
by these institutions and other applicable laws and regulations. Legally, changes in the wage rates are
beyond the control of both the manpower agency and the client; hence, any increase or decrease in
the wage and wage-related benefits will not necessarily directly affect the demand. Based on results
from interviews with some prominent schools, hotels and malls, the order of priority considered
when looking for a manpower agency is as follows:
1. Prompt Remittances
2. Marketing or Advertisement
3. Referral
4. Lowest Cost
5. Urgency of Need to Outsource
6. Extensive Clientele List
7. Direct Proposal
The probability that these potential clients are willing to pay the minimum wage is high,
taking into consideration that there is strict observance of government laws and regulations.
Following the minimum wage law will help the company to avoid incurring further costs and
penalties.
The wage rates and wage-related benefits including the social benefits as imposed by law will
compose the total direct labor cost, serving as the basis for the pricing strategy of the proposed
manpower agency. Changes in rates will be effected by wage orders implemented by the Regional
Tripartite Wages and Productivity Board under DOLE. Hence, the business venture will have to
adhere to the rates mandated by law in the computation of its direct labor costs.
In the financial aspect of this study, only the DOLE-approved administrative overhead cost
derived as ten (10) percent of the direct labor cost will be taken into consideration since it is the core
basis of the financial analysis to indicate the profitability of the project. The proposed manpower
agency will be dependent on this ten (10%) standard administrative cost for its profit. Changes in
the total direct labor cost will be directly proportionate to the administrative overhead.
For the next five years, the manpower agency is projected to have the following rates for its basic monthly contract rate:
2010
2011
2012
2013
2014
SUBTOTAL
Php7,046
390
587
119
8,142
Php7,046
390
587
119
8,142
Php7,436
390
620
125
8,571
Php7,436
390
620
125
8,571
Php8,112
130
676
132
9,050
SUBTOTAL
DIRECT LABOR COST
495
88
10
100
692
8,835
495
88
10
100
692
8,835
530
88
10
100
728
9,299
530
88
10
100
728
9,299
589
100
10
100
799
9,849
C. Other Factors
Administrative Overhead (10% Contribution)
SUBTOTAL
TOTAL A, B & C
Add: 12% VAT from A, B & C
BASIC MONTHLY CONTRACT RATE
8,835
1,060
Php9,895
883
883
9,718
1,166
Php10,884
930
930
10,228
1,227
Php11,456
930
930
10,228
1,227
Php11,456
985
985
10,834
1,300
Php12,134
A. Per Employee
Basic Pay
COLA
13th month
5 days service incentive leave pay
B. Employer's Contribution
SSS Contribution
PhilHealth Contribution
Employee Compensation (EC)
Pag-IBIG Contribution
2015
2016
2017
SUBTOTAL
Php8,112
130
676
132
9,050
Php9,167
130
764
149
10,209
Php9,167
130
764
149
10,209
Php10,725
130
894
174
11,923
Php10,725
130
894
174
11,923
SUBTOTAL
DIRECT LABOR COST
589
100
10
100
799
9,849
678
100
10
100
888
11,097
678
100
10
100
888
11,097
806
115
10
100
1,031
12,954
806
115
10
100
1,031
12,954
C. Other Factors
Administrative Overhead (10% Contribution)
SUBTOTAL
TOTAL A, B & C
Add: 12% VAT from A, B & C
BASIC MONTHLY CONTRACT RATE
985
985
10,834
1,300
Php12,134
1,110
1,110
12,207
1,465
Php13,672
1,110
1,110
12,207
1,465
Php13,672
1,295
1,295
14,249
1,710
Php15,959
1,295
1,295
14,250
1,710
Php15,960
A. Per Employee
Basic Pay
COLA
13th month
B. Employer's Contribution
SSS Contribution
2018
2019
Factors affecting the projections of the prices are the changes in labor laws and the 5% (see Appendix Q) average inflation rate.
G. Marketing Program
With a buoyant economy the demand for manpower agency services is improving. Utilizing
standard and advanced marketing techniques, Jobs Avenue Manpower Agency can thrive in
providing labor resources. The Jobs Avenue Manpower Agencys marketing program will be based
on advertising and networking.
The advertising will be done in the several local newspapers (see Appendix P) in Davao City
that cater to existing and emerging businesses. The most prominent is the SunStar Davao which
Jobs Avenue will often have a presence in. The advertisement will be geared towards potential
clients and applicants. Advertising activities will also include posting at Public Employment Service
Office (PESO) and Philjob.net, an official website under the Department of Labor and Employment
(DOLE). Additionally, the agency will distribute flyers (see Appendix O) as a way of soliciting
applicants.
Jobs Avenue Manpower Agency will be relying on networking to set up companies as clients.
On the first few years, Jobs Avenue will submit service proposal to our major target market such as
hotels, schools and malls as well as to medium scale business, which will need the services that the
agency provides. Jobs Avenue Manpower Agency will participate in biddings through submission of
a comprehensive service proposal. The service proposal contains the following primary information:
Company Details, Vision and Mission
The Quality Services Offered
Advantages and Benefits from Contracting with Jobs Avenue Manpower Agency
Cost Proposal
As business continues, Jobs Avenues track record will get more solid and its results will
speak for itself. This is the type of industry where associations count for a lot, and when Jobs
Avenue Manpower Agency scores a few big clients, many others will come through the door
through referrals from clients, PESO and business associates.
Chapter 3
A. Service Process
There will be two (2) major processes that Jobs Avenue Manpower Agency will be performing.
One will depict the transactions between the applicant and the agency. The other will be the
transactions between the clients and the agency.
A.1. Agency and Applicants
Recruitment and Application
Screening and Evaluation
Seminars and Trainings
Deployment
Illustration 3.1 Procedure for Hiring
Recruitment and Application

Jobseekers can access information about Jobs Avenue Manpower Agency through the
companys marketing program. If they are interested to apply for a job through the agency they can
directly go to the office and inquire to the receptionist for the necessary requirements. The following
should be submitted to the receptionist before being scheduled for screenings.
Bio-Data with 2x2 picture
Birth Certificate
Diploma
Community Tax Certificate
NBI Clearance
Barangay Clearance
Health Card
Drug Test
Taxpayers Identification Number, Social Security System number E1/E4, PhilHealth

number, Pag-Ibig number
Screening and Evaluation

After submission of the necessary requirements, the receptionist will verify its completeness
and authentication. He will also assess if the applicant is physically, and mentally fit to be employed
for technically-intensive jobs. Once verified, a company staff will enter the applicants data into the
companys database.
The applicant will then be asked to answer a personality examination to determine his
aptitude for certain jobs. Through the test, prevailing skills will be determined and matched with the
jobs that the agency offers. The different jobs together with their essential skills are presented in the
next page.
SERVICES
Janitorial
Housekeeping
Washer, Dishwasher, Laundry Worker
SKILLS
Physical Strength, Cleaning
Cleaning, Organizing
Cleaning
Packer
Organizing, Speed
Inventory Clerk
Organizing, Math
Promo attendant
Organizing, Social
Service Crew
Food Court Crew
Restaurant Staff
Organizing,
Cleanliness, Creativity
Creativity, Social
Sales Clerk
Social, Math
Receptionist
Social, Languages(English)
Cashier
Social, Math
Clerk
Social, Math
Table 3.1 Services Offered and Skills Needed

After evaluating the applicants test results, he will be scheduled for an interview by the
operations manager for further assessment of his skills and his attitude towards his work. They will
also be judged based on the criteria imposed by the agency. The top three (3) jobs compatible for
the applicant will be established based on test and the interview. If the interviewer has determined
that the applicant is satisfactory to work, he will be scheduled for the orientation and trainings.
Trainings selected for a certain applicant will be based on the top three (3) jobs chosen for him as
well as the demand for specific job positions from certain clients.
Seminars and Trainings

Applicants who passed the screening phase will be required to attend the orientation and a 2day training seminar on a specific job position before being deployed to a client. The following
schedule of seminars and trainings will be followed.
Week
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Orientation
Course 1
Course 1 and
Course 3 and
Course 3
and 2-
2- Day 2
4- Day 1
and 4-
Saturday
1
2
Day 1
Day 2
3
4
Orientation
Course 1
Course 1 and
Course 3 and
Course 3
and 2-
2- Day 2
4- Day 1
and 4-
Day 1
Day 2
Table 3.2 Monthly Schedule of Orientations and Trainings

*Those who will be applying and who passed during the 1st and 4th week will be scheduled for the orientation and
training on the 2nd week and those who will be applying and who passed during the 2nd and 3rd week will be
scheduled for the 4th week.
The orientation will be conducted by the training supervisor, and will last for four (4) hours,
either in the morning (8:00am- 12:00pm) or in the afternoon (1:00pm- 5:00pm) whenever is
available. The following key points will be discussed with the applicants.
Services offered
Obligation of the agency and applicant
Nature of the contract
Terms and conditions
Proper Work Ethics
Payroll System
Rules and Regulations
Importance of sanitation and hygiene

The agency will be conducting four (4) types of courses specializing on different topics
depending on the skills required by a specific job. This will be done every other week. Trainings will
be based on TESDA modules, and will be discussed and demonstrated by training experts hired by
the agency. Trainees will also be asked to perform some of the procedures taught to them in front of
the trainers. The training courses are presented below.
Course 1: Janitorial, Housekeeping, and Washer

Course 2: Packing, Inventory Clerk, Promo attendant, Service Crew
Course 3: Food Court Crew, Restaurant Staff
Course 4: Receptionist, Clerk, Cashier, Sales Clerk
After the training, trainees will be evaluated based on their performance during the trainings
and will be given a certificate of training afterwards. This will indicate that the trainee is prepared to
be deployed to different business establishments.
Deployment
Before being sent to clients, the applicants will be asked to sign contracts of employment to
formalize their relationships with the agency. See Appendix A for the specific terms and conditions
that will compose the contract.
Applicants are then instructed to go to the Human Resource (HR) departments of specific
business establishments on a specified time and date. They will be provided with endorsement
letters from the agency; and together with their application forms, and training certifications, they
will present it to the clients management. They will then be oriented by the establishments HR
department for specific company policies.
The applicant will be receiving their salaries from the agency every 15th and 30th of the
month. They will be instructed to report to the financial manager on those days to receive their
payments and for further evaluation of their status with the clients company. The evaluation will be
based to the employees time cards, client evaluations, and incident reports if any. Feedback from
the company will also be relayed to them and the manager will give them recommendations to
address such.
At the end of their contracts, the operations manager will review the employees
performances during the duration of his employment. If the employees performance is deemed
satisfactory, without any reports of misconducts, they will be offered to renew their contracts with
the agency. If evaluated with poor performance, their contract with the agency will be fully
terminated.
A.2. Agency and Clients
Pre-engagement of Manpower Agency Services

Service Proposal
Prospective Client Inquiry
Acceptance of Manpower Agency Services

Terms and Conditions
1. Client's Perspective
2. Agency's Perspective
Formal Business Operation

Illustration 3.2 The Service Process Between the Agency and the Client
Pre-engagement of Manpower Agency Services

The pre-engagement of manpower agency services phase defines the steps that Jobs Avenue
Manpower Agency will undertake in order to acquire clients. In the pre-engagement phase, there are
two major ways in which the Agency can solicit clients namely:
1. Service Proposal
2. Prospective Client Inquiry
In order to gain clients, Jobs Avenue Manpower Agency will furnish service proposals to
different establishments which aim to offer the manpower services provided by the agency. The
primary purpose of giving service proposal is to highlight what the agency can offer to the
prospective client and the advantages of partnering with Jobs Avenue Manpower Agency.
Additionally, the agency will participate in biddings wherein organizations will seek out a service
provider offering quality human resources.
The agency can also obtain clients through their marketing programs. Potential clients, who
are interested in engaging Jobs Avenue Manpower Agency services, can directly inquire to the
agency. In line with this, the proponents will present to the prospective client pertinent papers
necessary to answer their inquiries.
Acceptance of Manpower Agency Services

In the acceptance of manpower agency services, the terms and conditions of the contract are
identified. This phase is primarily composed of different business meetings and negotiations in order
to perform the following:
1. Identifying the labor force needed by the client;
2. Ascertaining the billing arrangement between the agency and the client (eg. ATM, check,
bank transfer);
3. Determining the terms and conditions that will be satisfied both by the agency and the client;
4. Drafting and finalizing of the contract;
5. Complying with the requirements imposed by Government agencies governing the conduct
of manpower agencies;
6. Completing requirements asked by the client
7. Consulting the Legal Consultant of the agency.
Formal Business Operation

Before the start of the formal business operation, it is necessary that the agency conduct a
general orientation to the workforce who assigned to respective clients in order to inform them with
the general policies, rules and regulations of the said client. Jobs Avenue Manpower Agency will
ensure that the manpower supplied by the agency are monitored and supervised. This is done to
achieve the mission and vision of the agency..
Illustration 3.3 The Business Process

The service process will normally begin with the agency sending personnel to the client in
order to provide manpower. The manpower supplied by Jobs Avenue Manpower Agency is on a
contractual basis. The duration of rendering services is stated in the contract and during this period
the agency will ensure that the workforce is properly managed. The agency will request the client to
fill-up a standard employee evaluation form during the first and last month of the contract period in
order to acquire feedback. The agencys liaison will also supervise the deployed workforce from
time-to-time, submitting reports to the operations manager. The administration manager will see to
it that an effective communication system exists between the agency and the client to expedite
response time to the needs of the client. It is the duty of the agency to keep the records of the
personnel, supervise, monitor and evaluate the work of the manpower supplied.
B. Machinery and Equipment
Machinery and
Description
Uses
Unit Cost
Equipment
Office Computer Personal Computer with printer, A ready-made management information Computer:
operating software, Microsoft system will be installed in all five (5) Php25,000.00
office,
and
antivirus
Total Cost
Php144,647.50
software. office computers. Through the system,
IRIS:
Php19,647.50
accompanied with HP printers are and update records of clients and ( 271).
often used, because they are cheap, employees. It will also be used to make
ASUS
Essentio
Desktops the computers will be used to maintain
user-friendly and are perfect for and print contract, and to generate
business But any brands would do payroll schedule.
as long as the computer unit has a
capacity of at least 500 GB.
Telephone/Fax
Thermal fax with phone and The equipment will be used to contact Php6,000.00
copier.
Brother
FAX236S
is clients and employees, to entertain
suggested to be purchased and feedbacks from clients, and to receive as

used in the operation of the well as send fax transmissions.
business because of its cheap price,
and user-friendly design. However,
any brands will do.
Php18,000.00
Machinery and
Equipment
Typewriter
Description
Uses
Unit Cost
Total Cost
Compact and portable typewriter with 16 The equipment will be used to Php7,000.00
Php14,000.00
characters LCD display which allows user to fill-up unfilled printed forms.
make corrections on the display, before
printing on the paper.
The preferred model is Brother GX-8250
because of its affordable price, and its
specifications - 16 Characters LCD display
allows user to make corrections on the display
before printing on the paper; 10, 12 and 15
pitch typing (Pica, Elite and Micron); "WordSpell" 78,000 word dictionary with errorlocating FIND feature make typing faster and
easier and more accurate; 65 characters
correction memory; and automatic "WordOut" correction system erases a single word at
the touch of a button. But then again, any
other brands will do as long as it can perform
the said use of the equipment.
Machinery and
Equipment
Photocopier
Electronic Copy Machine
(second-hand)
The preferred model would be the documents and other visual images in the
Description
Uses
Unit Cost
To be used in making paper copies of Php16,000.00
Total Cost
Php16,000.00
second-hand photocopier which operations of the manpower agency.

has
smooth
photocopying
and
reliable
operation,
hardware
few
maintenance
requirements and low operating

costs. In addition, the photocopier
must have high productivity, image
quality enhancement and highspeed
scanning
and
printing
functions.
LCD Projector
Video front-projection
To
aid
in
projecting
business Php18,500.00
The preferred model would be presentations to new and existing clients

Acer projectors with crystal clear and training modules and materials to the
displays, dynamic
lamp power newly-recruited workers for deployment.
adjustments, power saving features,

and up to 6000 hours lamp life.
Php37,000.00
C. Furniture and Fixture

Furniture and Fixture
Airconditioning Unit
Description
Uses
Unit Cost
The preferred model is Carrier ICOOL 0.5 It will be used to cool the office Php20,000.00
HPWCARG006EA
affordable
price
because
(Php
of
17,795),
Total Cost
Php40,000.00
its and to create an environment

and conducive for working.
specifications - Run Hour Timer, 8-in-1

filtration system; Energy Saving Plug on
timer; Econo Mode, the electric fan turns
on once desired room temperature is
reached; Cooling Fail Function; Anti-freeze
protection;
Filter
Cleanup
reminder;
Cooling Capacity of 5,275 kJ/Hr; Energy

Efficiency Ratio of 10.0 kJ/W-Hr; and
Power Consumption of 527 W. Still, other
brands may do as long as it has energy
saving functions.
Coffee Table
80 cm x 80 cm x 45 cm Glass table with It will be placed in the lounge Php 5000.00

wooden legs. The Bridge Coffee Table is of the office. It can be used by
preferred because of its price (Php 4,100), the applicants for them to place
dimension (stated above), durability, and their papers on, and to fill
refined architectural design. It can be forms
required
purchased at Mandaue Foam. However, manpower agency.

other brands and design will also do.
by
the
Php5,000.00

Bench
Description
Uses
Unit Cost
51 cm x 103 cm x 45 cm 3-seater bench. The benches will be placed in Php5,000.00
Total Cost
Php10,000.00
The preferred model is the Chele Bench the office lounge. It will be used
which can be bought at Mandaue Foam at as seats for applicants, as well as
a price of Php 4,500. It is fully upholstered, seats for clients and any other
has tufted top and sides, and has wooden person who does business or
base. This model is preferred due to its have any concern with the
slick and contemporary design, its color, manpower agency.
and its sturdiness. Nonetheless, other
brands will do.
Receptionist Table
150 cm x 60 cm x 120 cm customized The receptionist table will be Php5,000

wooden furniture
placed in the office lounge. It
A customized model is preferred since it is will be used by a receptionist to

cheaper compared to those which can be entertain clients, as well as
sourced locally; and, because it better applicants in a proper and
serves the need of the agency. However, orderly manner.
ready-made models can also be used as
long as it has near dimensions as shown
above.
Php5,000

Office Desks
Description
Uses
57 cm x 115.5 cm x 72 cm wenge work To

desk
serve
as
Unit Cost
a
personal Php2,700.00
Total Cost
Php10,800.00
workspace and to accommodate
The preferred unit will be a wenge the computer needs of each

executive type and a medium-sized office employee of the manpower
desk which has full edging and three agency
stationary drawer slide metal with minifix
caps. This can be purchased from Mandaue
Foam Philippines.
Office Chair
Computer office chair
To serve as the seating spaces Php1,400.00
The preferred model will be an ergonomic of
the
employees
of
the
type of office chair with seat-height manpower agency in order for

adjustment to find the perfect position to them to comfortably perform
facilitate productivity. The office chair will their jobs and tasks.
have a weight capacity to support 250
pounds. It will facilitate airflow and
support extensive use of up to six to eight
hours a day. This can be purchased from
San-yang Furniture.
Php18,200.00

Water Dispenser
Description
Uses
35 cm x 36 cm x 99 cm freestanding water To provide purified water and

dispenser
Unit Cost
Total Cost
Php5,000.00
Php5,000.00
Php 5,000.00
Php5,000.00
to cater to the various usage
The preferred model will be a Camel water needs of the drinkers

dispenser which has a beautiful sculpt and
decorous appearance. The water dispenser
will have a firm and durable structure, low
noise, heating and temperature control,
unique refrigerating system and energysaving features.
Conference Table
112 cm x 245 cm x
75 cm wooden To
conference table
serve
as
an
official
workspace for meetings with
The preferred unit will be a customized clients and employees within

wooden executive type and an oval-shaped the manpower agency.
conference table which has a large
workspace, durable laminate finish and
engineered wood construction. However,
any brand or type of conference table will
do as long as it meets the specified
dimensions.

Safety Deposit Box
Description
The SentrySafe Security Safe X055 is Use
Uses
to
store
Unit Cost
Total Cost
valuable Php5,000.00
Php5,000.00
designed with an electronic lock with possessions of the agency such

override key to keep valuables secure. The as cash that need protection
solid steel pry-resistant door and body help from
protect against theft and unauthorized theft, fire, flood, tampering, or
entry.
valuables.
Carpeted floor protects your other perils.
D. Office Location
Illustration 3.4 Office Location

*The red box indicates the location of the office building
The office of Jobs Avenue Manpower Services will reside in the second floor of Uncle Mark
Building along Quimpo Boulevard in between Juna and Ecoland Subdivisions. The location was
mainly chosen because of its availability and its reasonable price. Monthly rent expense will be PHP
7,500.00 for an office space of 30 square meters.
Since the company plans to transact with clients in their place of business, the location does
not pose too much of an importance. Still, there are advantages as to the chosen site. Such as:
The presence of different modes of transportations in the vicinity. Public jeepneys and taxis
are regularly outside.
Since the building is along the highway, employees can find and visit it easily.
Another is its proximity to different potential clients such as schools, malls, and hotels.
There are several boutique hotels within Juna and Ecoland Subdivisions, Ateneo De Davao
University, NCCC and SM malls are also nearby.
There is also a legal firm within the building which the company can hire to make and
process their contracts.
Pag-IBIG, one of the government agencies that the company is regularly required to make
remittances to is right in front of the building.
E. Office Layout
F. Supplies Requirement
The supplies will mainly include stationery materials. The following are the annual
requirement, their cost per unit and possible suppliers:
Particulars
Quantity
Cost per
unit
Suppliers
Bond Papers
50 reams
Php150
Ballpoint pens
100 pieces
20
Pencils
50 pieces
Stapler
6 pieces
100
Staple wire
10 boxes
90
Printer Inks
10 liters
150
Correction Fluid
20 pieces
30
Calculator
4 pieces
200
Folders
300 pieces
Fasteners
300 pieces
Petty Cash Vouchers
12 pads
7.50
Check books
12 pads
250
Table 3.3 Costing of the Raw Materials Requirement
Jade Bookstore
National Bookstore
Paper tree
G. Utilities
Utilities
Electricity
Cost
Php 7,717.50
Sources
Davao Light Power
Corporation
Alternative
Sources
Feasibility
Not Feasible
The utility needed in the operations of the manpower agency is electricity expense. The basis
for the cost is pegged based on the estimated consumption of the agency. Electricity expenses have
been estimated to cost Php 7,350.00 per month based on year 2014. Assuming that the manpower
agency will commence on year 2015, an annual 5% inflation rate had been considered. Taking the
inflation rate into consideration, it is estimated that the monthly electricity expense of the manpower
agency will be Php 7,717.50 per month on year 2015.
H. Waste Disposal
Garbage bins
Jobs Avenue Manpower Agencys office shall contain four garbage containers with lids and
labels biodegradable, recyclable, residual wastes, and hazardous waste. All of which shall be neatly
and separately packed in garbage bags.
Physical wastes
In accordance with the citys Ecological Solid Waste Management System, physical wastes
such as papers used by employees, used inks of printers, used pencils and ball pens, and other
physical wastes from the office shall be properly segregated. A provided by the government, nonbiodegradable waste products are to be thrown in the black garbage bins while biodegradable wastes
are to be thrown in the green garbage bins.
Classification of garbage (Mainly adapted from the Ladislawa Solid Waste Management
Program)
A. Biodegradables
a. Food waste
b. Vegetable and fruit residues
c. Fish cleaning/processing wastes
d. Chicken/animal bones
e. Crush shells
B. Recyclables
a. Bottles and vials
b. Plastics
c. Newspapers/papers
d. Cartons
e. Metals
f. Transparent cellophanes
C. Residuals
a. Used sanitary napkins and disposable diapers, tissue paper, cottons, etc.
b. Colored cellophanes
c. Packaging materials
d. Barbecue sticks, paper plates, plastics cups, disposable fork and spoon, egg trays,
cellophanes of vinegar and soy sauce, etc.
D. Hazardous waste
a. Used fluorescent tubes and bulbs
b. Used dry and wet cell batteries
c. Container of chemicals
d. Broken bottles
I. Service Cost
2010
2011
2012
2013
2014
A. Per Employee
Basic Pay
Php7,046
Php7,046
Php7,436
Php7,436
Php8,112
COLA
390
390
390
390
130
13th month
587
587
620
620
676
119
119
125
125
132
SUBTOTAL
8,142
8,142
8,571
8,571
9,050
B. Employer's Contribution Per Employee
SSS Contribution
495
495
530
530
589
88
88
88
88
100
10
10
10
10
10
100
100
100
100
100
SUBTOTAL
692
692
728
728
799
DIRECT LABOR COST
8,835
8,835
9,299
9,299
9,849
C.
Training Fee
40,000
40,000
40,000
40,000
40,000
*Other Training Expense
32,000
32,000
32,000
32,000
32,000
MONTHLY SERVICE COST Php80,835 Php80,835 Php81,299 Php81,299 Php81,849
*Includes payment for food and meal, and location of training
2015
2016
2017
2018
2019
A. Per Employee
Basic Pay
Php8,112
Php9,167
Php9,167 Php10,725 Php10,725
COLA
130
130
130
130
130
13th month
676
764
764
894
894
132
149
149
174
174
SUBTOTAL
9,050
10,209
10,209
11,923
11,923
SSS Contribution
589
678
678
806
806
100
100
100
115
115
10
10
10
10
10
100
100
100
100
100
SUBTOTAL
799
888
888
1,031
1,031
DIRECT LABOR COST
9,849
11,097
11,097
12,954
12,954
C.
Training Fee
40,000
40,000
40,000
40,000
40,000
32,000
32,000
32,000
32,000
32,000
MONTHLY SERVICE COST Php81,849 Php83,097 Php83,097 Php84,954 Php84,954
*Includes payment for food and meal, and location of training
J. Labor Requirements
Officers and
Key Personnel
Managing
Partner
No. and
Labor
Classification
One
Requirements
He/She is one of the partners
To ensure the standards set by the company are met.
(e.g. target income, cost budget, financial and
operational growth)
To guarantee that the marketing program are in
placed
To ensure that the contracts between the agency and
the clients are met and satisfied
To guarantee that the contracts between the agency
and employees are followed
To validate, encode, and update the master list of
clients account profile
Head of
Operations
One
To manage the effectiveness and efficiency of

Human Resource
To act as the interviewer of applicants
To ensure that high quality of service is given to
clients
Officers and
Key Personnel
Accounting
Officer
No. and
Labor
Classification
Requirements
One
To keep full and accurate accounts of receipts and

disbursements in the books of the organization
To have custody and be responsible for all funds
To deposit in the name of company in such bank
designated, all money/funds
To prepare annual statements showing financial
condition of the company and other required financial
reports
liaising with auditors to ensure annual monitoring is
carried out;
To manage the payroll of the deployed workforce
To oversee the remittance of the clients and
employees share contribution (eg. PhilHealth, PagIBIG,)
Legal
Consultant
One
To provide consulting services on matters related to tax

and insurance,
legal and program issues to actively manage risks
To review, draft and negotiate legal documents (eg.
contracts)
Receptionist
One
To receive visitors (eg. client and staff), directing them

to the correct personnel
To answer inquiries in person, by phone and on e-mail
To receive, check the completeness and file the
applicants submitted requirements
To encode the applicants account profile
Officers and
Key Personnel
Liaison
No. and
Labor
Classification
Requirements
Two
To ensure an effective communication and cooperation

between the agency and existing clients
To supervise the deployed labor force
To carry out door-to-door visits to hired applicants
To deliver important documents
To remit contributions to different government owned
and/or controlled corporations and agencies (eg. PagIBIG, SSS, PhilHealth, BIR)
Training
Personnel
Three
To administer and evaluate the personality test given to

applicants
To develop and compile training resources, modules and
manuals
To prepare and facilitate seminars and trainings
To validate and update employees profile accounts
Chapter 4
A. Major Assumptions
General Operating Assumptions
1. There is a standard rate for all types of services offered as mandated by law.
2. Payments from clients are based on contract agreements.
3. 1% of the year 2015 excess demand is estimated to be the agencys market share. An
additional 1% per year thereafter is estimated to be the agencys market share for the
following years.
4. The commencement of the operations of the business is set at the beginning of 2015. Thus,
the agency will employ a calendar year ending December 31st of every year.
5. The agency will be operating from Monday to Saturday within business hours which is from
8 in the morning until 5 in the afternoon.
6. Partners will have equal share of the profit.
7. Salaries will be paid on time which will be every 15th and 30th of the month or a day earlier
if it shall fall on a Sunday or a Holiday.
8. Office will be closed during holidays.
Financial Assumptions
General
The projected annual core inflation rate is 5% (see Appendix Q) every year.
Cash
The petty cash fund (PCF) balance is set at PHP 20,000.00 per month.
Cash inflows are mainly coming from operations.
Cash outflows are mainly caused by purchasing transactions and payment of expenses.
Payroll Fund will be maintained at PHP 100,000.00 per month.
Accounts Receivable
Accounts receivable at the end of the year is estimated to be 25% of one-months revenue.
Equipment
Total Acquisition Cost
Particulars
Units
Useful Life
VAT exclusive
Salvage value
Office Computer
10 years
144,647.50
14,464.75
Telephone/Fax
10 years
18,000.00
0.00
Typewriter
10 years
14,000.00
0.00
**Photocopier
**3 years
16,000.00
1,600.00
LCD Projector
10 years
37,000.00
3,700.00
**After 3 years, another second-hand Photocopier will be purchased by the agency.
The following comprises furniture and Fixture with their acquisition costs. All of it is
estimated to have a useful life of ten years with no salvage value.
Total Acquisition Cost VAT
Particulars
Units
exclusive
Air Conditioning Unit
40,000.00
Coffee Table
5,000.00
Bench
10,000.00
Receptionist Table
5,000.00
Office Desks
10,800.00
Office Chairs
13
18,200.00
Water Dispenser
5,000.00
Conference Table
5,000.00
Safety Deposit Vault
5,000.00
Salaries and Wages - Administration
The 9 personnel employed under the administration will have the following monthly rate for
the first year of operations.
Officers and Key Personnel
Managing Partner
Head of Operations
No. and Labor

Classification
One
One
Total Monthtly Rate
Accounting Officer
Receptionist
One
One
20,000.00
9,000.00
Liaison
Two
18,000.00
Training Staff/HR Personnel
Three
27,000.00
10,000.00
20,000.00
Increase in annual rate is pegged at 5%.
Office Supplies
Office Supplies purchased for the day-to-day business operations are considered as outright
expense.
Cost per year (2015)
Particulars
Units per year
Bond Papers
Ballpoint pens
Pencils
Stapler
Staple wire
Printer Inks
Correction Fluid
Calculator
Folders
Fasteners
Petty Cash Vouchers
Check books
Others
Total
50 reams
100 pieces
50 pieces
6 pieces
10 boxes
10 liters
20 pieces
4 pieces
300 pieces
300 pieces
12 pads
12 pads
VAT exclusive
Monthly Office expense for the first year of operations will be PHP 1,670.00.
7,500.00
2,000.00
250.00
600.00
900.00
1,500.00
600.00
800.00
1,500.00
300.00
90.00
3,000.00
1,000.00
20,040.00
Cost of Service
Includes Salaries and wages of the employees deployed, personnel contributions, training
expense and other training expenses.
Training expenses is pegged at PHP 40,000.00 per month.
Other training expenses is pegged at PHP 32,000.00 per month.
Employees deployed will be receiving the minimum wage with projected increases every 2
years.
Minimum daily rate for year 2015 will be pegged at PHP 312.00, for year 2016 and 2017 will
be pegged at PHP 352.56 and for years 2018 and 2019 will be pegged at PHP 412.50.
Electricity Expense
Electricity expense is pegged at PHP 7,717.50 per month on year 2015 and is inflated 5%
every year thereafter.
Repairs and Maintenance
Repairs and maintenance it pegged at PHP 5,000.00 per quarter.
Security Services
Security Personnel is outsourced.
It is contract-based.
It is pegged at PHP 12,000.00 per personnel per month.
Communication
Landline and internet services are pegged at PHP 999.00 per month.
Cell phone load is pegged at PHP 300.00 per month for each liaison officer (2).
Rent Expense
The lease on the office space is an operating lease with a rental fee of PHP 7,500.00 per
month for five years.
The pricing for rent is contract-based which will last for five (5) years.
Recreational and Representation Expense
This expense account is pegged at PHP 15,000.00 per month.
Business Licenses
The business licenses incurred during the year are paid at year-end.
Inflated by 5% every year thereafter.
Registration Fee
The registration fee is PHP 25,000.00 upon approval of the application by the DOLE.
Miscellaneous Expenses
Subscription expenses for newspapers and magazines are pegged at PHP 3,000.00 per year
which will be inflated by 5% every year thereafter.
Advertising expenses are pegged at PHP 5,000.00 per month which will be inflated by 5%
every year thereafter.
Other miscellaneous expense is pegged at PHP 250.00 per month which will be inflated by
5% every year thereafter.
Legal Fees
This is pegged at PHP 6,000 per month.
B. Total Project Cost
Investment Cost
Furniture & Fixture (VAT-inclusive)
Equipment (VAT-inclusive)
Operating Cost per Quarter
Cost of Service
Salaries and Wages
PHIC
HDMF
SSS
EC Compensation
Electricity
Office Supplies
Communication
Rent
Security Services
Business Licenses
Registration Fees
Recreational and Representation Expenses
Legal Fees
Total Project Cost
Php116,480
257,205
2,261,964
312,000
3,900
2,700
21,216
390
23,153
5,000
5,010
16,500
4,797
90,000
36,000
1,075
6,250
45,000
18,000
Php3,226,640
C. Initial Working Capital Requirements
Cash policy
A PHP 1.5 Million minimum cash balance is to be set at the end of each year. This will
include the budgeted amounts for the petty cash fund and the payroll fund.
Credit Policy and Receivable Management

Transactions are on a contractual basis. The collection period for the manpower agencys
receivables will be based on the agreement between the agency and the client. Payment by the client
should be made on the date agreed upon in the contract. However, the agency will employ a n/30
credit policy. This policy will grant a thirty day grace period for the client to pay his dues. Penalties
will be imposed on payments beyond this period. The agency will implement a one percent
surcharge on the outstanding receivables.
D. Alternative Sources of Financing
External financing
Bank sourcing will be acquired through personal loans from Bank of the Philippine Islands
(BPI) by the partners.
Internal financing
The total amount loaned, which is PHP 1,500,000.00, will be a portion of the total
contributions of each of the partners and an additional PHP 1,500,000.00 cash contribution from
their personal savings will be required to fulfil the PHP 3,000,000.00 share capital required by law.
E. Sources of Financing the Project

The partners will resort to taking a loan from a credible bank to fund the manpower agency.
Loans from bank include a personal loan, a business loan, a credit line, trade credit and a mortgage.
As a source of financing the project, the consultants determined that a personal loan on part of the
partners would be appropriate. A personal loan is a loan granted by a banking institution for
personal or household matters. This type of loan does not require collateral like most other loans.
As identified by the consultants, Bank of the Philippine Island (BPI) offers the lowest interest rate
of 14.40%. Also, the loan is payable for three (3) years. Anyone aged 18 years old or above, and who
is already earning, is qualified by BPI to apply for this type of loan. Hence, each of the three (3)
partners will avail of the said loan for PHP 500,000.00 each.
The cash (PHP 500,000.00 each) derived by the partners from the loan mentioned above will
be contributed by the partners to the partnership. In addition, the partners will contribute the
remaining capital requirement (PHP 500,000.00 each) through their personal savings.
F. Chart of Accounts
ASSETS
Current Assets
Cash
Petty Cash
Cash in Bank
Payroll Fund
Receivables
Accounts Receivables
Prepayments
Prepaid Rent
Non-Current Assets
Property, Plant and Equipment
Office Computers
Photocopier
LCD Projector
Other Equipment
Accumulated DepreciationFurniture and Fixture
Accumulated DepreciationOffice Computers
Accumulated DepreciationPhotocopier
Accumulated DepreciationLCD Projector
Accumulated DepreciationOther Equipment
LIABILITIES
Current Liabilities
Salaries and Wages Payable
Due to Pag-IBIG
Due to PhilHealth
Due to SSS
Withholding Tax Payable
VAT Payable
Income Tax Payable
EQUITY
Partners Capital
Rhea Jane Carpio, Capital

Ruth Chew, Capital
Fidel Valdez, Capital
Table 4.1 Chart of Accounts
ASSETS
Current Assets
Petty Cash Cash kept on hand for purchases or reimbursements too small to be worth
submitting to the more rigorous purchase and reimbursement procedures of the agency.
Cash in Bank The sum of all coins, currency and cash items that have been placed on
deposit with a financial institution.
Payroll Fund This is a special fund for the purpose of paying any amount due to officers
and employees for salaries and wages.
Accounts Receivables Amount owed by the client in exchange for services that have
been delivered or used, but not yet paid for.
Prepaid Rent The amount of future rent payments for the office space that was paid in
advance of the rental period. The amount reported on the balance sheet is the amount that
has not yet been used or expired as of the balance sheet date.
Non-Current Assets
Furniture and Fixture This includes of the coffee table, air conditioning unit, bench,
receptionist table, office desks, office chair, water dispenser and conference table.
Office Computers The agency will utilize five office computers in processing and
recording business transactions.
Photocopier This is primarily for duplicating copies of documents
LCD Projector This is composed of two units of projector intended for audio visual
presentations.
Other Office Equipment This includes three units of telephone/fax and two units of
typewriter.
Accumulated Depreciation-furniture and fixture This is the accumulated amount of

the annual depreciation expense provided for furniture and Fixture. This is a contra account
which shall be deducted to the cost of the entire furniture and Fixture asset to arrive at their
carrying amounts.
Accumulated Depreciation Office Computers This is the accumulated amount of the

annual depreciation expense provided for office computers. This is a contra account which
shall be deducted to the cost of the office computers to arrive at their carrying amounts.
Accumulated Depreciation Photocopier This is the accumulated amount of the

annual depreciation expense provided for photocopier. This is a contra account which shall
be deducted to the cost of the photocopiers to arrive at their carrying amounts.
Accumulated Depreciation LCD Projector This is the accumulated amount of the

annual depreciation expense provided for LCD projectors. This is a contra account which
shall be deducted to the cost of the LCD projectors to arrive at their carrying amounts.
Accumulated Depreciation Other Equipment This is the accumulated amount of the

annual depreciation expense provided for other equipment. This is a contra account which
shall be deducted to the cost of the other equipment to arrive at their carrying amounts.
LIABILITIES
Salaries and Wages Payable The amount of salaries accrued for the period-ended.
Due to Pag-IBIG This comprises the employees and employers contribution to the
Home Development Mutual Fund project.
Due to PhilHealth This comprises the employees and employers contribution to

Philippine Health Insurance Company based on the schedule provided by the agency.
Due to SSS This comprises the employees and employers contribution to Social Security
System (SSS) plus employee compensation (EC).
Withholding Tax Payable This comprises the tax withheld to be paid on the tenth day of
the next month
VAT Payable 12% of the sum of direct labor and 10% administrative overhead.
Income Tax Payable This is the amount payable to the government based on the net
taxable income of the entity and is payable every April 15 of the next period.
EQUITY
Rhea Jane Carpio, Capital This represents the investment and of Rhea Jane Carpio and
the share of the partner of the partnerships income/(loss).
Ruth Chew, Capital This represents the investment of Ruth Chew and the share of the
partner of the partnerships income/ (loss).
Fidel Valdez, Capital This represents the investment of Fidel M. Valdez and the share of
the partner of the partnerships income/ (loss).
INCOME STATEMENT ACCOUNTS
Service Revenue This pertains to the administrative overhead as mandated by the DOLE
for the manpower supplied to the client.
Cost of Service This represents the costs necessary to perform such service. This includes
salaries and wages of employees deployed; employers contribution in statutory contributions
for employees deployed; training expenses, and other training expenses (includes payment
for training location, and food and meals for trainers and recruits during training).
Gross Profit This is the profit after deducting the cost of service from gross service
revenue but before deducting all the expenses.
Expenses
Salaries and Wages This represents the amount of salaries for office personnel.
HDMF This represents the amount of contribution by the employer to the Home
Development Mutual Fund.
PHIC This represents the amount of contribution by the employer to the Philippine
Health Insurance Corporation.
SSS This represents the amount of contribution by the employer to the Social Security
System.
Electricity Expenses This represents the cost of electricity consumption for the month.
Repairs and Maintenance Expenses This represents the cost of repairs and
maintenance for the various property, plant and equipment or capital assets.
Office Supplies Expenses This pertains to office supplies consumed during the period.
Miscellaneous Expenses This includes expenses not particularly designated in this chart
of accounts.
Communication Expenses This includes the amount of load to the dealer and landline.
Rent Expenses This pertains to the amount paid for occupying the space where the
warehouse is located.
Business Licenses This is an amount incurred for business licenses incurred for the legal
operations of the dealership.
Registration Fees This represents the application payment to the DOLE.
Depreciation Expenses These are non-cash expenses which reduces the value of an the
forklift, routing units, computer set and furniture and Fixture as a result of the assets wear
and tear
Net Income before Interest and Tax This is the amount of gross profit in excess of the
total expenses but before deducting interest expense and income tax.
Net Income after Interest Expense This refers to the net income after deducting
interest expense but before deducting income tax.
Provision for Income Tax The amount of tax which is based on net taxable income.
Net Income (Net Loss) This is the amount of income after deducting income taxes due
and payable from net income from operations.
Security Services This represents the amount paid for the security guards as a result of the
contract with the security agency
G. Pro-forma Financial Statements

The following are the financial statements of Jobs Avenue Manpower Agency. It is to be
noted that these are projected financial statements for the five years starting 2015. Furthermore, the
data for the first year (2015) is presented in its monthly break down.
a. Statement of Financial Position
b. Statement of Financial Operations
c. Statement of Cash Flows
d. Statement of Changes in Equity
e. Notes to Financial Statements
JOBS AVENUE MANPOWER AGENCY
Statement of Financial Position
As of
Notes
ASSETS
Current Assets
Petty Cash
Cash in Bank
Payroll Fund
Prepaid Rent
3
3
3
4
9
Php20,000
2,122,169
100,000
186,892
75,000
Php20,000
1,951,133
100,000
186,892
67,500
2,647,060
2,504,061
2,325,525
21
54,430
108,859
163,289
5,6
333,648
333,648
333,648
5,6
(2,896)
(5,791)
(8,687)
385,181
436,715
488,249
Total Assets
LIABILITIES
Current Liabilities
Due to Pag-IBIG
Due to PhilHealth
Due to SSS
Income Tax Payable
VAT Payable
Php3,032,241 Php2,940,777 Php2,813,774
7
7
7
7
13
Total Current Liabilities

Total Liabilities
OWNER'S EQUITY
Ruth Chew, Capital
Total Liabilities and
Owner's Equity
Mar
Php20,000
2,257,668
100,000
186,892
82,500
Total Current Assets

Noncurrent Assets
Deferred Tax Asset
Property, Plant and
Equipment
Less: Accumulated
Depreciation
Total Noncurrent Assets
Jan
2015
Feb
11
11
11
Php15,600
15,100
71,280
14,632
0
42,632
Php15,600
15,100
71,280
10,132
0
82,670
Php15,600
15,100
71,280
10,132
0
82,670
159,244
194,781
194,781
159,244
194,781
194,781
957,666
957,666
957,666
915,332
915,332
915,332
872,998
872,998
872,998
Php3,032,241 Php2,940,777 Php2,813,774
As of
Notes
ASSETS
Current Assets
Petty Cash
Cash in Bank
Payroll Fund
Prepaid Rent
3
3
3
4
9
Php20,000
1,609,061
100,000
186,892
52,500
Php20,000
1,438,025
100,000
186,892
45,000
2,146,989
1,968,453
1,789,917
21
217,718
272,148
326,577
5,6
333,648
333,648
333,648
5,6
(11,583)
(14,478)
(17,374)
539,783
591,317
642,851
Total Assets
LIABILITIES
Current Liabilities
Due to Pag-IBIG
Due to PhilHealth
Due to SSS
Income Tax Payable
VAT Payable
Php2,686,772 Php2,559,770 Php2,432,767
7
7
7
7
13

Total Liabilities
OWNER'S EQUITY
Ruth Chew, Capital
Owner's Equity
June
Php20,000
1,780,097
100,000
186,892
60,000

Noncurrent Assets
Deferred Tax Asset
Property, Plant and
Equipment
Less: Accumulated
Depreciation
Apr
2015
May
11
11
11
Php15,600
15,100
71,280
10,132
0
82,670
Php15,600
15,100
71,280
10,132
0
82,670
Php15,600
15,100
71,280
10,132
0
82,670
194,781
194,781
194,781
194,781
194,781
194,781
830,664
830,664
830,664
788,329
788,329
788,329
745,995
745,995
745,995
Php2,686,772 Php2,559,770 Php2,432,767
As of
Notes
ASSETS
Current Assets
Petty Cash
Cash in Bank
Payroll Fund
Prepaid Rent
3
3
3
4
9
Php20,000
1,095,952
100,000
186,892
30,000
Php20,000
924,916
100,000
186,892
22,500
1,611,380
1,432,844
1,254,308
21
381,007
435,437
489,866
5,6
333,648
333,648
333,648
5,6
(20,270)
(23,166)
(26,061)
694,385
745,918
797,452
Total Assets
LIABILITIES
Current Liabilities
Due to Pag-IBIG
Due to PhilHealth
Due to SSS
Income Tax Payable
VAT Payable
Php2,305,765 Php2,178,763 Php2,051,760
7
7
7
7
13

Total Liabilities
OWNER'S EQUITY
Ruth Chew, Capital
Owner's Equity
Sept
Php20,000
1,266,988
100,000
186,892
37,500

Noncurrent Assets
Deferred Tax Asset
Property, Plant and
Equipment
Less: Accumulated
Depreciation
July
2015
Aug
11
11
11
Php15,600
15,100
71,280
10,132
0
82,670
Php15,600
15,100
71,280
10,132
0
82,670
Php15,600
15,100
71,280
10,132
0
82,670
194,781
194,781
194,781
194,781
194,781
194,781
703,661
703,661
703,661
661,327
661,327
661,327
618,993
618,993
618,993
Php2,305,765 Php2,178,763 Php2,051,760
As of
Notes
ASSETS
Current Assets
Petty Cash
Cash in Bank
Payroll Fund
Prepaid Rent
3
3
3
4
9
Php20,000
582,844
100,000
186,892
7,500
Php20,000
217,808
100,000
186,892
90,000
1,075,772
897,236
614,700
21
544,296
598,725
684,355
5,6
333,648
333,648
333,648
5,6
(28,957)
(31,853)
(34,748)
848,986
900,520
983,254
Total Assets
LIABILITIES
Current Liabilities
Due to Pag-IBIG
Due to PhilHealth
Due to SSS
Income Tax Payable
VAT Payable
Php1,924,758 Php1,797,756 Php1,597,954
7
7
7
7
13

Total Liabilities
OWNER'S EQUITY
Ruth Chew, Capital
Owner's Equity
Dec
Php20,000
753,880
100,000
186,892
15,000

Noncurrent Assets
Deferred Tax Asset
Property, Plant and
Equipment
Less: Accumulated
Depreciation
Oct
2015
Nov
11
11
11
Php15,600
15,100
71,280
10,132
0
82,670
Php15,600
15,100
71,280
10,132
0
82,670
Php15,600
15,100
71,280
10,132
0
82,670
194,781
194,781
194,781
194,781
194,781
194,781
576,659
576,659
576,659
534,325
534,325
534,325
467,724
467,724
467,724
Php1,924,758 Php1,797,756 Php1,597,954
As of December 31
Notes
ASSETS
Current Assets
Petty Cash
Cash in Bank
Payroll Fund
Prepaid Rent
2015
2016
2017
Php20,000
217,808
100,000
186,892
90,000
Php20,000
153,558
100,000
430,291
90,000
Php20,000
61,488
100,000
750,720
90,000
614,700
793,849
1,022,208
21
684,355
1,070,009
1,060,985
5,6
333,648
333,648
317,648
5,6
(34,748)
(69,497)
(89,845)
983,254
1,334,160
1,288,788
3
3
3
4
9

Noncurrent Assets
Deferred Tax Asset
Property, Plant and
Equipment
Less: Accumulated
Depreciation
Total Assets
LIABILITIES
Current Liabilities
Due to Pag-IBIG
Due to PhilHealth
Due to SSS
Income Tax Payable
VAT Payable
Php1,597,954 Php2,128,010 Php2,310,996
7
7
7
7
13

Total Liabilities
OWNER'S EQUITY
Ruth Chew, Capital
Owner's Equity
11
11
11
Php15,600
15,100
71,280
10,132
0
82,670
Php29,976
29,476
154,717
11,137
0
199,392
Php50,962
50,462
260,905
12,192
0
353,084
194,781
424,698
727,605
194,781
424,698
727,605
467,724
467,724
467,724
567,770
567,770
567,770
527,797
527,797
527,797
Php1,597,954 Php2,128,010 Php2,310,996
As of December 31
Notes
ASSETS
Current Assets
Petty Cash
Cash in Bank
Payroll Fund
Prepaid Rent
2018
2019
Php20,000
763,328
100,000
1,050,896
90,000
Php20,000
2,367,558
100,000
1,343,023
90,000
2,024,224
3,920,582
21
691,787
5,6
333,648
333,648
5,6
(124,593)
(159,341)
900,842
174,306
3
3
3
4
9

Noncurrent Assets
Deferred Tax Asset
Property, Plant and
Equipment
Less: Accumulated
Depreciation
Total Assets
LIABILITIES
Current Liabilities
Due to Pag-IBIG
Due to PhilHealth
Due to SSS
Income Tax Payable
VAT Payable
Php2,925,065 Php4,094,888
7
7
7
7
13

Total Liabilities
OWNER'S EQUITY
Ruth Chew, Capital
Owner's Equity
11
11
11
Php60,899
69,458
370,309
13,300
0
497,048
Php77,217
69,458
468,270
14,463
32,498
637,143
1,011,014
1,299,050
1,011,014
1,299,050
638,017
638,017
638,017
931,946
931,946
931,946
Php2,925,065 Php4,094,888
Statement of Financial Operations
For the Month-ended
Notes
Service Revenue
17
Less: Cost of Services
18
Gross Profit
2015
Jan
Feb
Mar
Php 747,568
Php 747,568
Php 747,568
751,607
751,607
751,607
(4,039)
(4,039)
(4,039)
Less: Expenses
Salaries and Wages
20
104,000
104,000
104,000
PHIC
20
1,300
1,300
1,300
HDMF
20
900
900
900
SSS
20
7,072
7,072
7,072
EC Compensation
Electricity
14
Office Supplies
130
130
130
7,718
7,718
7,718
1,667
1,667
1,667
1,670
1,670
1,670
19
5,500
5,500
5,500
Communication
10
1,599
1,599
1,599
Rent
7,500
7,500
7,500
12,000
12,000
12,000
Security Services
Business Licenses
Registration Fees
Recreational and Representation
Expense
Legal Fees
Depreciation
Total Expenses
Net Income before Interest and Tax
Less: Provision for Income Tax (30%)
12
16
358
358
358
2,083
2,083
2,083
15,000
15,000
15,000
6,000
6,000
6,000
2,896
2,896
2,896
177,393
177,393
177,393
(181,432)
(181,432)
(181,432)
54,430
54,430
54,430
(Php127,002)
(Php127,002)
(Php127,002)
Less: Income Tax Benefit

Net Income/(Loss)
For the Month-ended
Notes
Service Revenue
17
18
Gross Profit
2015
Apr
May
June
Php 747,568
Php 747,568
Php 747,568
751,607
751,607
751,607
(4,039)
(4,039)
(4,039)
Less: Expenses
Salaries and Wages
20
104,000
104,000
104,000
PHIC
20
1,300
1,300
1,300
HDMF
20
900
900
900
SSS
20
7,072
7,072
7,072
EC Compensation
Electricity
14
Office Supplies
130
130
130
7,718
7,718
7,718
1,667
1,667
1,667
1,670
1,670
1,670
19
5,500
5,500
5,500
Communication
10
1,599
1,599
1,599
Rent
7,500
7,500
7,500
12,000
12,000
12,000
Security Services
Business Licenses
Registration Fees
Expense
Legal Fees
Depreciation
Total Expenses
12
16
358
358
358
2,083
2,083
2,083
15,000
15,000
15,000
6,000
6,000
6,000
2,896
2,896
2,896
177,393
177,393
177,393
(181,432)
(181,432)
(181,432)
54,430
54,430
54,430
(Php127,002)
(Php127,002)
(Php127,002)

Net Income/(Loss)
For the Month-ended
Notes
Service Revenue
17
18
Gross Profit
2015
July
Aug
Sept
Php 747,568
Php 747,568
Php 747,568
751,607
751,607
751,607
(4,039)
(4,039)
(4,039)
Less: Expenses
Salaries and Wages
20
104,000
104,000
104,000
PHIC
20
1,300
1,300
1,300
HDMF
20
900
900
900
SSS
20
7,072
7,072
7,072
EC Compensation
Electricity
14
Office Supplies
130
130
130
7,718
7,718
7,718
1,667
1,667
1,667
1,670
1,670
1,670
19
5,500
5,500
5,500
Communication
10
1,599
1,599
1,599
Rent
7,500
7,500
7,500
12,000
12,000
12,000
Security Services
Business Licenses
Registration Fees
Expense
Legal Fees
Depreciation
Total Expenses
12
16
358
358
358
2,083
2,083
2,083
15,000
15,000
15,000
6,000
6,000
6,000
2,896
2,896
2,896
177,393
177,393
177,393
(181,432)
(181,432)
(181,432)
54,430
54,430
54,430
(Php127,002)
(Php127,002)
(Php127,002)

Net Income/(Loss)
For the Month-ended
Notes
2015
Oct
Nov
Dec
Service Revenue
17
Php747,568
Php747,568
Php747,568
18
751,607
751,607
751,607
(4,039)
(4,039)
(4,039)
Gross Profit
Less: Expenses
Salaries and Wages
20
104,000
104,000
208,000
PHIC
20
1,300
1,300
1,300
HDMF
20
900
900
900
SSS
20
7,072
7,072
7,072
EC Compensation
Electricity
14
Office Supplies
130
130
130
7,718
7,718
7,718
1,667
1,667
1,667
1,670
1,670
1,670
19
5,500
5,500
5,500
Communication
10
1,599
1,599
1,599
Rent
7,500
7,500
7,500
12,000
12,000
12,000
Security Services
Business Licenses
Registration Fees
Expense
Legal Fees
Depreciation
Total Expenses
12
16
358
358
358
2,083
2,083
2,083
15,000
15,000
15,000
6,000
6,000
6,000
2,896
2,896
2,896
177,393
177,393
281,393
(181,432)
(181,432)
(285,432)
54,430
54,430
85,630
(Php127,002)
(Php127,002)
(Php199,802)

Net Income/(Loss)
For the Year-ended
Notes
2015
2016
2017
Service Revenue
17
Php8,970,818
Php20,653,957
Php36,034,579
18
9,019,289
19,640,324
33,622,708
(48,471)
1,013,632
2,411,871
Gross Profit
Less: Expenses
Salaries and Wages
20
1,352,000
1,419,600
1,490,580
PHIC
20
15,600
15,600
15,600
HDMF
20
10,800
10,800
10,800
SSS
20
84,865
97,595
97,595
EC Compensation
Electricity
14
Office Supplies
1,560
1,560
1,560
92,610
97,241
102,103
20,000
21,000
22,050
20,040
21,042
22,094
19
66,000
69,300
72,765
Communication
10
19,188
20,147
21,155
Rent
90,000
90,000
90,000
144,000
144,000
144,000
Security Services
Business Licenses
Registration Fees
Expense
Legal Fees
Depreciation
Total Expenses
12
16
4,300
4,515
4,741
25,000
180,000
180,000
180,000
72,000
72,000
72,000
34,748
34,748
34,748
2,232,711
2,299,148
2,381,790
(2,281,183)
(1,285,516)
30,080
684,355
385,655
(9,024)

Net Income/(Loss)
9,024
(Php1,596,828)
(Php899,861)
Php30,080
For the Year-ended
Notes
2018
2019
Service Revenue
17
Php50,443,009
Php64,465,123
18
46,721,281
59,468,658
3,721,728
4,996,466
Gross Profit
Less: Expenses
Salaries and Wages
20
1,565,109
1,643,364
PHIC
20
17,940
17,940
HDMF
20
12,420
12,420
SSS
20
116,138
116,138
EC Compensation
Electricity
14
Office Supplies
1,560
1,560
107,208
112,568
23,153
24,310
23,199
24,359
19
76,403
80,223
Communication
10
22,213
23,323
Rent
90,000
90,000
144,000
144,000
4,978
5,227
180,000
180,000
72,000
72,000
34,748
34,748
2,491,068
2,582,181
1,230,660
2,414,285
(369,198)
(724,285)
369,198
691,787
Php1,230,660
Php2,381,787
Security Services
Business Licenses
Registration Fees
Expense
Legal Fees
Depreciation
Total Expenses

Net Income/(Loss)
12
16
Statement of Cash Flows
As of
2015
Jan
Feb
Mar
(Php127,002)
(Php127,002)
(Php127,002)
Cash Flows from Operating Activities

Net Income /(loss)
Depreciation
2,896
2,896
2,896
(54,430)
(54,430)
(54,430)
(186,892)
(82,500)
7,500
7,500
Increase/(Decrease) in Due to Pag-IBIG
15,600
Increase/(Decrease) in Due to PhilHealth
15,100
Increase/(Decrease) in Due to SSS

Increase/(Decrease) in Withholding Tax
Payable
Increase in VAT Payable
71,280
14,632
(4,500)
42,632
40,038
(288,685)
(135,498)
(171,036)
Purchase of Furniture and Fixture
(104,000)
Purchase of Office Equipment
Deferred Tax Asset

Decrease/(Increase) in Accounts
Receivables
Decrease/(Increase) in Prepaid Rent
Increase in Income Tax Payable

Cash Provided by Operating
Cash Flows from Investing Activities
(229,648)
Sold Fully Depreciated Photocopier
Cash Used from Investing Activities
(333,648)
Additional Investment
Withdrawals of partners
Cash Used from Financing Activities
Net Increase (Decrease) in Cash
(622,332)
(135,498)
(171,036)
Total Cash, Beginning
3,000,000
2,377,668
2,242,169
Php2,377,668
Php2,242,169
Php2,071,133
Cash Flows from Financing Activities
Total Cash, End
As of
2015
Apr
May
Jun
(Php127,002)
(Php127,002)
(Php127,002)

Net Income /(loss)
Depreciation
2,896
2,896
2,896
(54,430)
(54,430)
(54,430)
7,500
7,500
7,500

Payable
(171,036)
(171,036)
(171,036)
(171,036)
(171,036)
(171,036)
2,071,133
1,900,097
1,729,061
Php1,900,097
Php1,729,061
Php1,558,025
Deferred Tax Asset

Receivables

Total Cash, End
As of
2015
Jul
Aug
Sept
(Php127,002)
(Php127,002)
(Php127,002)
2,896
2,896
2,896
(54,430)
(54,430)
(54,430)

Net Income /(loss)
Depreciation
Deferred Tax Asset
Receivables
7,500
7,500
7,500

Payable
(171,036)
(171,036)
(171,036)
(171,036)
(171,036)
(171,036)
1,558,025
1,386,988
1,215,952
Php1,386,988
Php1,215,952
Php1,044,916

Total Cash, End
As of
2015
Oct
Nov
Dec
(Php127,002)
(Php127,002)
(Php199,802)
2,896
2,896
2,896
(54,430)
(54,430)
(85,630)

Net Income /(loss)
Depreciation
Deferred Tax Asset
Receivables
7,500
7,500
(82,500)

Payable
(171,036)
(171,036)
(365,036)
(171,036)
(171,036)
(365,036)
1,044,916
873,880
702,844
Php873,880
Php702,844
Php337,808

Total Cash, End
As of December 31
2015
2016
2017
(Php1,596,828)
(Php899,861)
Php30,080
34,748
34,748
34,748
(684,355)
(385,655)
9,024
(186,892)
(243,399)
(320,430)
(90,000)
15,600
14,376
20,986
15,100
14,376
20,986

Payable
71,280
83,437
106,188
10,132
1,005
1,055
82,670
116,722
153,692
(2,328,545)
(1,264,249)
56,329

Purchase of Depreciable Office
Equipment
(104,000)
(229,648)
1,600
(333,648)
1,600
1,200,000
(150,000)
1,200,000
(150,000)
(2,662,192)
(64,249)
(92,071)
3,000,000
337,808
273,558
Php337,808
Php273,558
Php181,488

Net Income /(loss)
Depreciation
Deffered Tax Asset
Receivables


Total Cash, End
As of December 31
2018
2019
Php1,230,660
Php2,381,787
34,748
34,748
369,198
691,787
(300,176)
(292,127)

Net Income /(loss)
Depreciation
Deffered Tax Asset
Receivables
9,937
16,318
18,996

Payable
109,404
97,961
1,108
1,163
143,964
140,095
32,498
1,617,840
3,104,231

Purchase of Depreciable Office
Equipment
(16,000)
(16,000)
(900,000)
(1,500,000)
(900,000)
(1,500,000)
701,840
1,604,231
181,488
883,328
Php883,328
Php2,487,558

Total Cash, End
Statement of Changes in Owner's Equity
As of
2015
Feb
Mar
Php957,666 Php915,332
0
0
0
0
(42,334)
(42,334)
Php915,332 Php872,998
Rhea Jane Carpio, Beginning Capital

Add: Additional Investment
Less: Withdrawal
Add: Net Income/(Loss) share
Rhea Jane Carpio, Ending Capital
Jan
Php1,000,000
0
0
(42,334)
Php957,666
Ruth Chew, Beginning Capital

Less: Withdrawal
Ruth Chew, Ending Capital
Php1,000,000 Php957,666 Php915,332

0
0
0
0
0
0
(42,334)
(42,334)
(42,334)
Php957,666 Php915,332 Php872,998
Fidel Valdez, Beginning Capital

Less: Withdrawal
Fidel Valdez, Ending Capital
Php1,000,000 Php957,666 Php915,332

0
0
0
0
0
0
(42,334)
(42,334)
(42,334)
Php957,666 Php915,332 Php872,998
As of
2015
May
Jun
Php830,664 Php788,329
0
0
0
0
(42,334)
(42,334)
Php788,329 Php745,995

Less: Withdrawal
Apr
Php872,998
0
0
(42,334)
Php830,664

Less: Withdrawal
Php872,998 Php830,664 Php788,329

0
0
0
0
0
0
(42,334)
(42,334)
(42,334)
Php830,664 Php788,329 Php745,995

Less: Withdrawal
Php872,998 Php830,664 Php788,329

0
0
0
0
0
0
(42,334)
(42,334)
(42,334)
Php830,664 Php788,329 Php745,995
As of
Jul
Rhea Jane Carpio, Beginning Capital Php745,995
0
Less: Withdrawal
0
(42,334)
Php703,661
2015
Aug
Sept
Php703,661 Php661,327
0
0
0
0
(42,334)
(42,334)
Php661,327 Php618,993

Less: Withdrawal
Php745,995 Php703,661 Php661,327

0
0
0
0
0
0
(42,334)
(42,334)
(42,334)
Php703,661 Php661,327 Php618,993

Less: Withdrawal
Php745,995 Php703,661 Php661,327

0
0
0
0
0
0
(42,334)
(42,334)
(42,334)
Php703,661 Php661,327 Php618,993
As of
2015
Nov
Dec
Php576,659 Php534,325
0
0
0
0
(42,334)
(66,601)
Php534,325 Php467,724

Less: Withdrawal
Oct
Php618,993
0
0
(42,334)
Php576,659

Less: Withdrawal
Php618,993 Php576,659 Php534,325

0
0
0
0
0
0
(42,334)
(42,334)
(66,601)
Php576,659 Php534,325 Php467,724

Less: Withdrawal
Php618,993 Php576,659 Php534,325

0
0
0
0
0
0
(42,334)
(42,334)
(66,601)
Php576,659 Php534,325 Php467,724
As of December 31

Less: Withdrawal
2015
2016
2017
Php1,000,000 Php467,724 Php567,770
0
400,000
0
0
0
(50,000)
(532,276)
(299,954)
10,027
Php467,724 Php567,770 Php527,797

Less: Withdrawal
Php1,000,000 Php467,724 Php567,770

0
400,000
0
0
0
(50,000)
(532,276)
(299,954)
10,027
Php467,724 Php567,770 Php527,797

Less: Withdrawal
Php1,000,000 Php467,724 Php567,770

0
400,000
0
0
0
(50,000)
(532,276)
(299,954)
10,027
Php467,724 Php567,770 Php527,797
As of December 31

Less: Withdrawal
2018
2019
Php527,797 Php638,017
0
0
(300,000)
(500,000)
410,220
793,929
Php638,017 Php931,946

Less: Withdrawal
Php527,797 Php638,017
0
0
(300,000)
(500,000)
410,220
793,929
Php638,017 Php931,946

Less: Withdrawal
Php527,797 Php638,017
0
0
(300,000)
(500,000)
410,220
793,929
Php638,017 Php931,946
Notes to the Financial Statements

Note 1 The Manpower Agency
Jobs Avenue Manpower Agency started to commence its organizational activities since the
last quarter of 2014 and finally started its formal business operations on January 1, 2015. The
manpower agency is primarily engaged in the wide range of manpower services, mainly focusing on
blue-collared professionals deployed in various business establishments.
The agency is primarily operating in the area of Davao City, serving various establishments
in the said area, majority of which is composed of hotels, malls, schools, restaurants, warehouses,
factories and other offices. The registered office address of the organization is at the second floor of
Uncle Mark Building along Quimpo Boulevard in between Juna and Ecoland Subdivisions
Note 2 Accounting Policies
Basis of accounting
The comparative financial statements have been prepared in conformity with Philippine
Financial Reporting Standards, or PFRS.
Cash
Cash includes in bank, petty cash fund and payroll fund.
Office equipment
Office equipment is stated at cost less accumulated depreciation and amortization and any
accumulated impairment losses. The initial cost of office equipment comprises its purchase price,
including import duties and non-refundable purchase taxes and any directly attributable costs of
bringing the equipment to its working condition and location for its intended use.
Expenditures incurred after the office equipment have been put into operation, such repairs
and maintenance, are normally recognized as expense in the period such costs are incurred.
Depreciation and amortization commence once the office equipment are available for use
and are calculated on a straight-line basis over the estimated useful lives of the assets. The estimated
useful live used in depreciating the office equipment are as follows:
Equipment
Office Computer
10 years
Photocopier
3 years
LCD Projector
10 years
Typewriters
10 years
Telephone/Fax
10 years
An item of office equipment is derecognized upon disposal or when no future economic

benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset
is included in profit or loss in the period the asset is derecognized.

Furniture and Fixture are stated at cost less accumulated depreciation and amortization and
any accumulated impairment losses. The initial cost of furniture and Fixture comprise its purchase
price, including import duties and non-refundable purchase taxes and any directly attributable costs
of bringing the furniture to its working condition and location for its intended use.
Expenditures incurred after the items have been put into operation, such repairs and
maintenance, are normally recognized as expense in the period such costs are incurred.
Depreciation and amortization commence once the furniture and Fixture are available for
use and are calculated on a straight-line basis over the estimated useful lives of the assets. The
estimated useful live used in depreciating them are as follows:
Furniture and Fixture:
Air Conditioning Unit
10 years
Coffee Table
10 years
Bench
10 years
Receptionist Table
10 years
Office Desks Office Desks
10 years
Office Chairs
10 years
Water Dispenser
10 years
Conference Table
10 years
Safety Deposit Vault
10 years
An item is derecognized upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on derecognition of the asset is included in profit or
loss in the period the asset is derecognized.
Revenue recognition
Revenue is recognized to the extent that it is probable that economic benefits will flow to
the agency and the revenue can be reliably measured, regardless of when payment is being made.
Revenue is measured at the fair value of the consideration received or receivable.
Service Revenue. Revenue from the services rendered in the course of ordinary activities is
measured at the fair value of the consideration received or receivable.
Expense recognition
Expenses are recognized upon receipt of goods, utilization of services or at the date they are
incurred.
Expenses are also recognized in the statements of income when decrease in future economic
benefit related to a decrease in an asset or an increase in a liability that can be measured reliably has
arisen.
Taxes
Current income tax assets and liabilities for the current and prior periods are measured at the
amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted as at the end of the
reporting period where the agency operates and generate taxable income.
Note 3 -Cash
The cash account is comprised of petty cash fund, payroll fund and cash in bank. The
breakdown and projections are as follows:
2015
2016
2017
2018
2019
Php20,000
Php20,000
Php20,000
Php20,000
Php20,000
Payroll Fund
100,000
100,000
100,000
100,000
100,000
Cash in Bank
217,808
153,559
61,488
763,328
2,367,558
Php337,808
Php273,559
Php181,488
Php883,328
Php2,487,558
Petty Cash Fund
Total Cash
Note 4- Accounts Receivable

Accounts receivable at the end of the year is estimated to be 25% of previous-months
revenue. Projections of Accounts receivable per year-end for five years are as follows:
Previous month's
revenue
2015
2016
2017
2018
2019
Php747,568
Php1,721,163
Php3,002,882
Php4,203,584
Php5,372,094
0.25
0.25
0.25
0.25
0.25
Php186,892
Php430,291
Php750,720
Php1,050,896
Php1,343,023
Percentage
Accounts Receivable
Note 5 Office Equipment

The office equipment comprises the five office computers (including the software cost), one
photocopier, two LCD projectors, three telephones and two typewriters. The fixed assets in this
account is pegged a salvage value equal to 10% of its cost. The following is the schedule of the
carrying amount of the aforementioned components of the account:
Office Computer
2015
2016
144,647.50
144,647.50
Salvage Value
14,464.50
14,464.50
14,464.50
14,464.50
14,464.50
Accumulated
Depreciation
13,018.28
26,036.55
39,054.83
52,073.11
65,091.39
131,629.22 118,610.94 105,592.66
92,574.38
79,556.10
Cost
Carrying Amount
Photocopier
2017
2018
2019
144,647.50 144,647.50 144,647.50
2015
2016
2017
2018
2019
16,000
16,000
16,000
16,000
16,000
Salvage Value
1,600
1,600
1,600
1,600
1,600
Accumulated Depreciation
4,800
9,600
14,400
4,800
9,600
0 (1,600)
0 11,200
6,400
Cost
Sold
Carrying Amount
11,200
LCD Projector
6,400
2015
2016
2017
2018
2019
37,000
37,000
37,000
37,000
37,000
Salvage Value
3,700
3,700
3,700
3,700
3,700
Accumulated Depreciation
3,330
6,660
9,990
13,320
16,650
Cost
Carrying Amount
33,670 30,340 27,010 23,680 20,350
Telephone/ Fax
Cost
2015
Php18,000
2016
Php18,000
2017
Php18,000
2018
2019
Php18,000 Php18,000
Salvage Value
Accumulated
Depreciation
Carrying Amount
1,800
3,600
5,400
7,200
9,000
Php16,200 Php14,400 Php12,600 Php10,800
Php9,000
Typewriter
Cost
Salvage Value
Accumulated
Depreciation
Carrying Amount
2015
Php14,000
2016
2017
2018
2019
Php14,000 Php14,000 Php14,000 Php14,000
1,400
2,800
4,200
5,600
7,000
Php12,600 Php11,200
Php9,800
Php8,400
Php7,000
Telephone/fax and typewriter is considered as other equipment.

Note 6 Furniture and Fixture
The furniture and Fixture includes two air conditioning units, one coffee table, two benches,
one receptionist table, five office desks, fourteen office chairs, one water dispenser, one conference
table and one safety deposit vault. The management will utilize furniture and Fixture until fully
depreciated, assigning no salvage value.
*Furniture and
Fixture
Cost
Salvage Value
Accumulated
Depreciation
Carrying Amount
2015
2016
2017
2018
2019
Php104,000 Php104,000 Php104,000 Php104,000 Php104,000

0
0
0
0
0
(10,400)
(20,800)
(31,200)
(41,600)
(52,000)
Php93,600
Php83,200
Php72,800
Php62,400
Php52,000
*inclusive of all furniture and Fixture mentioned above.
Note 7 -Statutory Contributions

The annual amount of statutory contributions (exclusive of statutory contributions for
employees deployed) amounts as follows for 2015:
Annual Statutory
Deductions
HDMF
Employer
Php
10,800
Employee
Php
10,800
PHIC
15,600
15,600
SSS
84,865
84,865
1,560
1,560
Php 112,825
Php 112,825
Employee's Compensation
Total, 2015
A liability, including Statutory Deductions for Deployed Employees, equivalent to one

contribution remains at the end of the year to be paid on January 2016:
Payable Accounts
Employer
Due to HDMF
Employee
Total
Php7,800.00 Php7,800.00 Php15,600.00
Due to PHIC
7,550
7,550
15,100
Due to SSS
35,640
35,640
71,280
*Withholding Tax Payable
10,132
10,132
*Inclusive of Expanded Withholding Tax from Rent and Security Services

Expanded Withholding Tax
Rent Expense (5%)
Jan
Feb
Mar
Apr
May
June
4500
240
240
240
240
240
240

Payable
Php4,740
Php240
Php240
Php240
Php240
Php240
July
Aug
Sept
Oct
Nov
Dec
240
240
240
240
240
240
Php240
Php240
Php240
Php240
Php240
Php240
Security Services (2%)
Rent Expense (5%)

Security Services (2%)
Payable
Note 9 Rent
On January 1, 2015, Jobs Avenue Manpower Agency pays in advance PHP 90,000.00 as rent
payments for the whole year of 2015. This will be expensed at the end of the calendar year. Before
the commencement of year 2016, the agency will pay PHP 90,000.00 as rent payments for the year
2016.
Note 10 Communication Expenses

The agency provides load allowance to the liaisons for business purposes. The
communication expenses comprise the following accounts for 2015:
Liaisons Load
Landline and Internet Subscription
Total Communication, 2015
7,200.00
11,988.00
19,188.00
Note 11 Capital Accounts

The matters affecting the capital account over five years are the following:
2015
2016
2017
2018
2019
Rhea Jane Carpio, Beginning

Capital
Php1,000,000
Php467,724
Php567,770
Php527,797
Php638,017
400,000
Less: Withdrawal
Add: Net Income/(Loss)
share
Rhea Jane Carpio, Ending
Capital
(50,000)
(300,000)
(500,000)
(532,276)
(299,954)
10,027
410,220
793,929
Php467,724
Php567,770
Php527,797
Php638,017
Php931,946
Php1,000,000
Php467,724
Php567,770
Php527,797
Php638,017
400,000
Less: Withdrawal
share
(50,000)
(300,000)
(500,000)
(532,276)
(299,954)
10,027
410,220
793,929
Php467,724
Php567,770
Php527,797
Php638,017
Php931,946
Ruth Chew, Beginning

Capital
Fidel Valdez, Beginning

Capital
Php1,000,000
Php467,724
Php567,770
Php527,797
Php638,017
400,000
Less: Withdrawal
share
(50,000)
(300,000)
(500,000)
(532,276)
(299,954)
10,027
410,220
793,929
Php467,724
Php567,770
Php527,797
Php638,017
Php931,946
Each partner will have an additional investment of Php 400,000.00 to cover the cash
deficiency on year 2012.
Each partner will withdraw Php 50,000.00, Php 300,000.00, Php 500,000.00 for year 2017,
2018, and 2019 respectively.
Note 12- Business Licenses

The following are the licenses paid to the government during 2015:
Particular
Cost
SEC and BIR Registration
Php 2,7350
Notarize articles of partnership
500
Community Tax and Community Tax Certificate
500
Barangay clearance
100
Business Permit
50
Special book of accounts
400
Certificate of Registration, Taxpayer Identification Number

Total Business Licenses, 2015
15
Php 4,300
Note 13- Vat Payable

The Value Added Tax (VAT) payable is computed as follows:
Jan
Feb
2015
Mar
Apr
May
Jun
Input Vat
47,076
7,038
7,038
7,038
7,038
7,038
Output Vat
89,708
89,708
89,708
89,708
89,708
89,708
Vat Payable
42,632 82,670 82,670 82,670 82,670 82,670
Jul
Aug
2015
Sept
Oct
7,038
7,038
7,038
7,038
7,038
7,038
Output Vat
89,708
89,708
89,708
89,708
89,708
89,708
Vat Payable
82,670 82,670 82,670 82,670 82,670 82,670
Input Vat
Nov
Dec
2015
Input Vat
2016
2017
2018
2019
7,038
7,147
7,262
7,382
7,508
Output Vat
89,708
206,540
360,346
504,430
644,651
Vat Payable
82,670 199,392 353,084 497,048 637,143
Note 14- Repairs and Maintenance

This comprises of repairs and maintenance for office equipment as well as of the office
itself.
Note 15- Registration Fee
The amount Php 25,000 is mandated by the Department of Labor and Employment through
Department Order No. 18-A series of 2011.
Note 16-Legal Fees
This includes transactions pertaining to contract-making as well as other transactions which
necessitate the service of a legal counsel.
Note 17 Service Revenue
The service revenue for each year is computed as follows:
2015
Forecasted Annual Demand

*Annual Contract Price
Service Revenue
2016
2017
69
141
246
Php130,012
Php146,482
Php146,482
Php8,970,818 Php20,653,957 Php36,034,579
*VAT-exclusive
2018
Forecasted Annual Demand
*Annual Contract Price
Service Revenue
*VAT-exclusive
2019
295
377
Php170,993
Php170,995
Php50,443,009 Php64,465,123
Note 18 Cost of Service

The cost of service for each year is computed as follows:
2015
2016
2017
2018
2019
Php6,716,736
Php15,509,820
Php27,059,685
Php37,966,058
Php48,519,900
COLA
107,640
219,960
383,760
460,200
588,120
13th month
559,728
1,292,485
2,254,974
3,163,838
4,043,325
109,365
252,080
439,799
615,805
786,988
7,493,469
17,274,344
30,138,218
42,205,902
53,938,333
487,940
1,146,660
2,000,570
2,854,879
3,648,425
82,800
169,200
295,200
407,100
520,260
8,280
16,920
29,520
35,400
45,240
82,800
169,200
295,200
354,000
452,400
SUBTOTAL
661,820
1,501,980
2,620,490
3,651,379
4,666,325
DIRECT LABOR COST
8,155,289
18,776,324
32,758,708
45,857,281
58,604,658
Training Fee
480,000
480,000
480,000
480,000
480,000
384,000
384,000
384,000
384,000
384,000
Php9,019,289
Php19,640,324
Php33,622,708
Php46,721,281
Php59,468,658
A. Per Employee
Basic Pay
SUBTOTAL
SSS Contribution
C.
COST OF SERVICE
*Other Training Expenses includes food and meal allowances, and rent for the venue of the training/seminar.
Note 19- Miscellaneous Expenses

The other operating expenses comprise the following for 2015:
Particular
Subscription Expenses - Magazines and Newspapers
Cost
Php
Advertising Expenses
60,000
Other Miscellaneous Expenses

Total Miscellaneous Expenses, 2015
3,000
3,000
Php
66,000
Note 20- Salaries and Wages

The payroll for 2015 is computed as follows:
Daily
rate
Basic Pay
Gross Pay
W/Htax
HDMF
PHIC
Administration
manager
384.62
10,000.00
10,000.00
708.33
100.00
125.00
363.30
1,296.63
Operations
manager
769.23
20,000.00
20,000.00
2,916.75
100.00
250.00
581.30
Financial
Manager
769.23
20,000.00
20,000.00
2,916.75
100.00
250.00
Receptionist
346.15
9,000.00
9,000.00
558.28
100.00
Liaison-1
346.15
9,000.00
9,000.00
558.28
Liaison-2
346.15
9,000.00
9,000.00
Training Staff-1
346.15
9,000.00
Training Staff-2
346.15
Training Staff-3
346.15
Name
Total
annual basic
pay
13th
month pay
Total Salaries
and Wages
8,703.37
120,000.00
10,000.00
130,000.00
3,848.05
16,151.95
240,000.00
20,000.00
260,000.00
581.30
3,848.05
16,151.95
240,000.00
20,000.00
260,000.00
112.50
327.00
1,097.78
7,902.22
108,000.00
9,000.00
117,000.00
100.00
112.50
327.00
1,097.78
7,902.22
108,000.00
9,000.00
117,000.00
558.28
100.00
112.50
327.00
1,097.78
7,902.22
108,000.00
9,000.00
117,000.00
9,000.00
558.28
100.00
112.50
327.00
1,097.78
7,902.22
108,000.00
9,000.00
117,000.00
9,000.00
9,000.00
558.28
100.00
112.50
327.00
1,097.78
7,902.22
108,000.00
9,000.00
117,000.00
9,000.00
9,000.00
558.28
100.00
112.50
327.00
1,097.78
7,902.22
108,000.00
9,000.00
117,000.00
104,000.00
104,000.00
9,892
900.00
1,300.00
3,487.90
15,579.41
88,420.59
1,248,000.00
104,000.00
1,352,000.00
SSS
Total
deductions
net pay
Note 21 Deferred Tax

The following is the computation of deferred tax asset:
Net Income/
(Loss)
Provision for
Income Tax
Income Tax
Deferred Tax
Asset
2015
2016
2017
2018
2019
(Php2,281,183)
(Php1,285,516)
Php30,080
Php1,230,660
Php2,414,285
0.30
0.30
0.30
0.30
0.30
(684,355)
(385,655)
9,024
369,198
724,285
(Php684,355)
(Php1,070,009)
(Php1,060,985)
(Php691,787)
Php0
H. Financial Analyses
Vertical Analysis
5-year Vertical Analysis
2015
2016
2017
2018
2019
ASSETS
Current Assets
Petty Cash
1.25%
0.94%
0.87%
0.68%
0.49%
Cash in Bank
13.63%
7.22%
2.66%
26.10%
57.82%
Payroll Fund
6.26%
4.70%
4.33%
3.42%
2.44%
11.70%
20.22%
32.48%
35.93%
32.80%
5.63%
4.23%
3.89%
3.08%
2.20%
38.47%
37.30%
44.23%
69.20%
95.74%
Deferred Tax Asset
42.83%
50.28%
45.91%
23.65%
0.00%
20.88%
15.68%
13.75%
11.41%
8.15%
Less: Accumulated Depreciation
-2.17%
-3.27%
-3.89%
-4.26%
-3.89%
61.53%
62.70%
55.77%
30.80%
4.26%
100.00%
100.00%
100.00%
100.00%
100.00%
Due to Pag-IBIG
0.98%
1.41%
2.21%
2.08%
1.89%
Due to PhilHealth
0.94%
1.39%
2.18%
2.37%
1.70%
Due to SSS
4.46%
7.27%
11.29%
12.66%
11.44%
0.63%
0.52%
0.53%
0.45%
0.35%
Income Tax Payable
0.00%
0.00%
0.00%
0.00%
0.79%
VAT Payable
5.17%
9.37%
15.28%
16.99%
15.56%
12.19%
19.96%
31.48%
34.56%
31.72%
12.19%
19.96%
31.48%
34.56%
31.72%
29.27%
26.68%
22.84%
21.81%
22.76%
Ruth Chew, Capital
29.27%
26.68%
22.84%
21.81%
22.76%
29.27%
26.68%
22.84%
21.81%
22.76%
100.00%
100.00%
100.00%
100.00%
100.00%
Prepaid Rent
Noncurrent Assets

Total Assets
LIABILITIES
Current Liabilities

Total Liabilities
OWNER'S EQUITY

Total Liabilities and Owner's
Equity
Despite the large figure that the cash in bank account represents against the total assets,
there is an apparent stability in the composition of the total assets. The cash in bank account has an
increasing trend since payment of the VAT payable occurs every month. Increases in the Accounts
Receivable account is attributed to the assumption that two percent of the 2015 excess demand is
Jobs Avenue Manpower Agencys market share with additional one percent every year that follows.
Of the several accounts which affected the cash flows of the manpower agency is in the year 1 and
year 2 losses followed by revenues in the succeeding years, in the employer contributions, in the
taxes paid for the every year, in the initial purchases of the furniture and fixtures, office equipment
and its corresponding depreciation and in the withdrawals of the partners.
The input VAT from the beginning of the operations came from the purchases of furniture
and fixtures and office equipment. This led to a relatively lower VAT payable in the first year as
compared to the succeeding years. The VAT payable is projected to increase as the increase in the
revenue occurs because the behaviour of the output VAT depends upon changes in the agencys
revenues. Over the next five years, the revenues behaviour is consistently seen to be moving
upward. This is brought about by the assumed increase in market share.
The composition of the cash against the total assets over five years is strengthened by the
high collectability of the revenues, as projected by the proponents in order to meet the agencys Php
1.0 Million minimum cash balance requirement. On the other hand, there is the recognition of a
deferred tax asset brought about by the net operating loss carry-over which is sustained by the
agency for the first two years. This led to almost one half of the total assets during the first, second
and third year of operations, declined at the second year at almost one fourths of the total assets and
eventually fell to zero percent over the next three years thereafter.
As far as the figures shows, over the next five years, the current assets of the agency are
projected to comprise almost a majority of the total assets. This rise in the composition of the
current assets against the total assets is clearly the result of the huge cash in bank balance
requirement over the next five years and lower levels of non-current asset investments brought
about by the nature of the business which does not require a substantial amount of purchases in
property and equipment. The composition also of the non-current assets against the total assets is
also decreasing due to the fact that the office equipment and furniture and fixtures are depreciated
and the additional purchases of such assets are minimal. Deferred tax asset is also reduced to zero in
the fifth year, contributing to the decrease in percentage.
The total current liabilities comprises only less than 15% of the total liabilities and owners
equity account in the first year but is projected to increase over the next four years to around more
than 30%. The current liabilities will normally increase over four years due to the increasing VAT
payable as mentioned above. The capital account on the other hand is projected to be decreasing in
percentage, but it never falls down below 65%. It is expected to maintain a relatively high level of
percentage of the total liabilities and total equity account in the course of the next five years since
agency, although incurring losses in the first two years, continues to earn positive profits. A high
volume of the amounts remain in the equity accounts because of the additional investment in the
second year, shifting the financial leverage to lean toward its equity accounts.

Horizontal Analysis
5-year Horizontal Analysis
2015
2016
2017
2018
2019
ASSETS
Current Assets
Petty Cash
100.00%
0.00%
0.00%
0.00%
0.00%
Cash in Bank
100.00%
-29.50%
-71.77%
250.46%
987.00%
Payroll Fund
100.00%
0.00%
0.00%
0.00%
0.00%
100.00%
130.23%
301.69%
462.30%
618.61%
Prepaid Rent
100.00%
0.00%
0.00%
0.00%
0.00%
100.00%
29.14%
66.29%
229.30%
537.80%
Deferred Tax Asset
100.00%
56.35%
55.03%
1.09%
100.00%
0.00%
-4.80%
0.00%
100.00%
0.00%
Less: Accumulated Depreciation
100.00%
100.00%
158.56%
258.56%
358.56%
100.00%
35.69%
31.07%
-8.38%
-82.27%
100.00%
33.17%
44.62%
83.05%
156.26%
Due to Pag-IBIG
100.00%
92.16%
226.68%
290.38%
394.98%
Due to PhilHealth
100.00%
95.21%
234.19%
359.99%
359.99%
Due to SSS
100.00%
117.06%
266.03%
419.51%
556.94%
100.00%
9.92%

Noncurrent Assets

Total Assets
LIABILITIES
Current Liabilities
20.34%
31.27%
42.75%
100.00%
100.00%
141.19%
327.10%
501.25%
670.71%
100.00%
118.04%
273.55%
419.05%
566.93%
100.00%
118.04%
273.55%
419.05%
566.93%
100.00%
21.39%
12.84%
36.41%
99.25%
Ruth Chew, Capital
100.00%
21.39%
12.84%
36.41%
99.25%
100.00%
21.39%
12.84%
36.41%
99.25%
100.00%
33.17%
44.62%
83.05%
156.26%
Income Tax Payable

VAT Payable
Total Liabilities
OWNER'S EQUITY

Total Liabilities and Owner's
Equity
The analysis shows the trends and relationships of every account titles with their
corresponding base year amounts. The general trend of cash is sudden increases in percentages since
the agency needs to maintain a Php 1.0 million cash balance at the end of each year and expects cash
receipts from its revenues. Despite the withdrawals made by the partners, the cash balance is still
above the minimum cash requirement. The high requirement for the cash balance is necessary to
meet the agencys current liabilities. Nevertheless, the agency is expected to return portions of the
partners invested capital in the form of the income they will earn.
There are no changes in the petty cash, payroll fund and prepaid rent accounts. The
Accounts Receivable account also has sudden increases over the next five years. This is due to the
increasing market share that the agency will acquire. During the first year of operation the agency is
required to acquire assets before the business starts to operate. The acquisition of the capital assets
such as the furniture and fixtures and office equipment which were capitalized increased greatly the
input VAT only the first year since these assets are acquired only on the first year. This is the reason
why VAT payable during the first year is significantly lower than in the succeeding years. However,
the VAT payable starts its increasing trend on the second year since it is when output VAT starts to
increase relative to the increase in the revenues.
Non-current assets have a declining trend since these assets are being depreciated on a
straight-line basis provided that there is no additional acquisition of vehicles during the five-year
period. However, the photocopier was fully depreciated on the third year of operations, contributing
to a 100% decrease in comparison to its base year amount. Moreover, no change occurred in the
following year due to the purchase of a new photocopier since the old machine was properly
disposed. However, for the Deferred Tax Asset account, there is an upward trend during the first
two years which suddenly declined in the succeeding years afterwards. The reason behind this
behaviour is the tax savings that the manpower agency experienced due to its net losses for the first
two years of operations.
The trend of employer contributions is increasing because it is proportional to the number
of employees that it deploys. It is projected that there is an increase in the market share of the
agency, henceforth, leading to higher service costs for the agency. In addition, there are projected
increases in the due to PhilHealth, due to Pag-Ibig and due to SSS accounts for the employees
working for the administrative function of the agency. As for the employees deployed, there are only
increases in the due to PhilHealth and due to SSS accounts. The liability from income taxes and the
VAT payable are both based from the increase or decrease in the net income. Having an increasing
trend in net income resulted to an increasing trend of both income tax payable and the VAT
payable. The owners equity has an increasing trend due to the fact that there was an additional
investment made and that the company continues to earn profits after incurring losses during its
first two years of operations.

Vertical Analysis
5-year Vertical Analysis
2015
2016
2017
2018
2019
Service Revenue
100%
100%
100%
100%
100%
101%
95%
93%
93%
92%
-1%
5%
7%
7%
8%
Salaries and Wages
7%
7%
4%
3%
3%
PHIC
0%
0%
0%
0%
0%
HDMF
0%
0%
0%
0%
0%
SSS
0%
0%
0%
0%
0%
EC Compensation
0%
0%
0%
0%
0%
Electricity
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Office Supplies
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Communication
0%
0%
0%
0%
0%
Rent
0%
0%
0%
0%
0%
Security Services
1%
1%
0%
0%
0%
Business Licenses
0%
0%
0%
0%
0%
Registration Fees
0%
0%
0%
0%
0%
1%
1%
0%
0%
0%
Legal Fees
0%
0%
0%
0%
0%
Depreciation
0%
0%
0%
0%
0%
25%
11%
7%
5%
4%
-25%
-6%
0%
2%
4%
-8%
-2%
0%
1%
1%
0%
-1%
-1%
0%
2%
4%
Gross Profit
Less: Expenses
Total Expenses
Net Income before Tax
Net Income/(Loss)
-18%
-4%
The basis for the following vertical analysis considered is the amount of service revenue for
the period.
The cost of services is averaging at about 95% of the total service revenue for the first five
years of operations of the business. This implies that only an average of 5% would be the gross
profit of the business for the said periods. Despite the low gross profit percentage, the agency will
recover and earn large amounts in the third to fifth years because of its lesser expense percentages.
Moreover, there is an increase in the number of employees supplied to the market which causes an
increase in the revenue.
The total expense for the year may be insignificant as compared with the total service
revenue for the five years. A huge amount can be attributed to the salaries and wages of the agency,
rent and other minor expenses. These expenses are reasonable due to the fact that the agency mainly
operates with the use of manpower in its business operations. Other minor expenses which have a
percentage of at least 1% are the miscellaneous expenses, rent, security services, legal fees and SSS
contributions. This is reasonable due to the fact that these expenses are significant in the operations
of the business. Moreover, other expenses do not constitute a significant amount due to its
materiality as against the base amount which is the service revenue.
The provision for income tax is directly proportional to the changes in the net income of the
business. In the same way, as the total service revenue of the business increases, as the case is, the
net income also increases. Since the first two years of operations is a loss, the company was able to
gain income tax benefit and apply it to the fourth and fifth year provision for income tax thereby
decreasing the amount of income tax deduction from the net income.

Horizontal Analysis
5-year Horizontal Analysis
2015
2016
2017
2018
2019
Service Revenue
100%
129%
300%
461%
616%
100%
117%
271%
417%
557%
Gross Profit
100%
237%
550%
846%
1131%
Salaries and Wages
100%
5%
10%
16%
22%
PHIC
100%
0%
0%
15%
15%
HDMF
100%
0%
0%
15%
15%
SSS
100%
15%
15%
37%
37%
EC Compensation
100%
0%
0%
0%
0%
Electricity
100%
5%
10%
16%
22%
100%
5%
10%
16%
22%
Office Supplies
100%
5%
10%
16%
22%
100%
5%
10%
16%
22%
Communication
100%
5%
10%
16%
22%
Rent
100%
0%
0%
0%
0%
Security Services
100%
0%
100%
100%
0%
0%
-100%
-100%
100%
0%
100%
100%
-100%
-100%
100%
0%
0%
0%
0%
Legal Fees
100%
0%
0%
0%
0%
Depreciation
100%
0%
0%
0%
0%
Total Expenses
100%
44%
158%
211%
100%
-44%
-155%
-206%
100%
-44%
102%
101%
101%
-155%
-206%
3988%
4005%
-44%
100%
102%
-177%
-183%
Less: Expenses
Business Licenses
Registration Fees
Net Income before Tax

100%

Net Income/(Loss)
100%
Service Revenue, Cost of Services and

Gross Profit
12000%
10408%
10000%
8000%
7778%
6000%
5076%
4000%
2191%
2000%
0%
0%
2015
130%
118%
2016
Service Revenue
302%
273%
2017
Cost of Services
619%
559%
462%
418%
2018
2019
Gross Profit
Graph 4.1 Service revenue, cost of services and gross profit

Each year, the total service revenue amount increases due to the increase in the number of
employees supplied to the market. The contract rate remains constant over the years. Thus, the
increase is mainly due to the increase in the total revenue brought about by the increase in the
supply in the market. The cost of services also increases due to the increase in the number of
employees as well as the increase in the different employer contributions. The graph shows that the
increase in the service revenue and the cost of services is relatively the same due to the fact that the
increase for both amounts depends on the increase in the market share. As a result, there is also an
increase in the gross profit over the years. This increase is exponential due to the fact that the first
year of operations, the base year, gained a small amount of gross profit.
Salaries and Wages

25%
22%
20%
16%
15%
10%
10%
5%
0%
5%
0%
2015
2016
2017
2018
2019
Salaries and Wages
Graph 4.2 Salaries and wages

The salaries and wages will increase by 5-6% in the first five years which is mainly composed
of the salaries of the employees in the administration. This increase is due to the increase in the
inflation rate over the years. This shows that there will be no increase in the number of
administrative employees. This is because the number employed in the admin is the maximum
number of employees the business needs for operations.
Total Expenses
18%
16%
16%
14%
12%
12%
10%
8%
7%
6%
4%
3%
2%
0%
0%
2015
2016
2017
2018
2019
Total Expenses
Graph 4.3 Total Expenses

The total expenses increased in the following years because of the increase in the market
share. There will be more expenses to be paid, higher employer contributions as variable to the
number of employees deployed. The increase is also brought about by the inflation rate which is
expected to be in 5% per year.
Net Income/(Loss)
300%
250%
249%
200%
177%
150%
102%
100%
50%
0%
44%
0%
2015
2016
2017
2018
2019
Net Income/(Loss)
Graph 4.4 Net Income/(Loss)

Net income is increasing due to the greater increase in the market share than the expenses
the business pays. Moreover, there graph is becoming steeper in the fourth to fifth year because of a
large increase brought about by the income tax benefit which decreases the provision for income tax
and increases the net income for the last two years.
Financial Ratios
2015
2016
2017
Liquidity Ratio
Current Ratio
=
Current Assets
Current Liabilities
Activity Ratios
Average Revenue per Day
Annual Revenue
=
365
614,700
194,781
8,970,818
365
3.16
24,578
793,849
424,698
20,653,957
365
1.87
56,586
1,022,208
727,605
36,034,579
365
1.40
98,725
Asset Turnover
=
Total Revenue
Total Assets
8,970,818
1,597,954
5.61
20,653,957
2,128,010
9.71
36,034,579
2,310,996
15.59
Total Liabilities
Total Assets
194,781
1,597,954
0.12
424,698
2,128,010
0.20
727,605
2,310,996
0.31
Total Assets
Capital
1,597,954
1,403,172
1.14
2,128,010
1,703,311
1.25
2,310,996
1,583,392
1.46
Total Liabilities
Capital
194,781
1,403,172
0.14
424,698
1,703,311
0.25
727,605
1,583,392
0.46
Debt Ratios
Debt Ratio
Asset-to-Equity
=
Debt-to-Equity
=
Profitability Ratios
Gross Profit Margin
=
Gross Profit
Total Revenue
(48,471)
8,970,818
-0.01
1,013,632
20,653,957
0.05
2,411,871
36,034,579
0.07
Net Income/(Loss)
Total Revenue
(1,596,828)
8,970,818
-0.18
(899,861)
20,653,957
-0.04
30,080
36,034,579
0.00
Net Income/(Loss)
Total Assets
(1,596,828)
1,597,954
-1.00
(899,861)
2,128,010
-0.42
30,080
2,310,996
0.01
Net Income
Capital
(1,596,828)
1,403,172
-1.14
(899,861)
1,703,311
-0.53
30,080
1,583,392
0.02
Return on Revenue
=
Return on Total Assets
=
Return on Capital
=
2018
2019
Liquidity Ratio
Current Ratio
Current Assets
Current Liabilities
2,024,224
1,011,014
Annual Revenue
365
50,443,009
365
Total Revenue
Total Assets
50,443,009
2,925,065
17.25
64,465,123
4,094,888
15.74
Total Liabilities
Total Assets
1,011,014
2,925,065
0.35
1,299,050
4,094,888
0.32
Total Assets
Capital
2,925,065
1,914,052
1.53
4,094,888
2,795,838
1.46
Total Liabilities
Capital
1,011,014
1,914,052
0.53
1,299,050
2,795,838
0.46
2.00
3,920,582
1,299,050
3.02
Activity Ratios
138,200
64,465,123
365
176,617
Asset Turnover
Debt Ratios
Debt Ratio
Asset-to-Equity
Debt-to-Equity
Gross Profit Margin
Gross Profit
Total Revenue
3,721,728
50,443,009
0.07
4,996,466
64,465,123
0.08
Net Income/(Loss)
Total Revenue
1,230,660
50,443,009
0.02
2,381,787
64,465,123
0.04
Net Income/(Loss)
Total Assets
1,230,660
2,925,065
0.42
2,381,787
4,094,888
0.58
Net Income
Capital
1,230,660
1,914,052
0.64
2,381,787
2,795,838
0.85
=
Return on Revenue
=
Return on Capital
Financial Ratios Analysis

Liquidity Ratios
Current Ratio
3.50
3.00
3.16
3.02
2.50
2.00
1.71
1.87
1.71
1.50
2.00
1.71
1.71
1.71
2018
2019
1.40
1.00
0.50
0.00
2015
2016
Current Ratio
2017
Indutry Standards
Graph 4.5 Current Ratio

The industry standard for the current ratio is pegged at 1.71times. The graph depicts that the
company will generally have a higher current ratio compared to the industry standard. This
establishes the agencys capability to fulfil its current obligations from its current assets since the
current ratio is maintained to be greater than 1. The current ratio of the agency is projected to be
decreasing on the first three years of operations and increases on the succeeding years. The high
current ratio on the first year is due to the lower amount for VAT payable which makes up the
current liabilities. Since the acquisition of fixed assets is incurred during this year, the application of
input VAT essentially lowers the VAT payable. The decreasing trend for the second and third years
as well as the increase for the fourth and fifth years can be attributed to the decline and rise of the
cash in bank respectively. Since the agency aims to remit to government agencies on time, the
agencys liquidity is essential and should be secured to prevent incurring further liabilities from
penalties and surcharges.
Activity Ratios
200,000
180,000
176,617
160,000
140,000
138,200
120,000
100,000
98,725
80,000
60,000
56,586
40,000
20,000
24,578
2015
2016
2017
2018
2019
Graph 4.6 Average Revenue per Day

The figures for the average revenues per day each year is seen to be increasing over the fiveyear period. The increasing trend is due to the increasing projection of excess demand for such jobs
as well as the increasing percentage of market share assumed to be acquired by the agency. The
number of deployed employees is expected to increase as the agency is able to acquire more clients.
Thus, there is constant increase of revenues per day.
Asset Turnover
20.00
18.00
17.25
16.00
15.74
15.59
14.00
12.00
10.00
9.71
8.00
6.00
4.00
2.00
5.61
3.082
3.082
3.082
3.082
3.082
2015
2016
2017
2018
2019
0.00
Aset Turnover
Industry Standards
Graph 4.7 Asset Turnover

The industry standard for the asset turnover is constant at 2.95 times. The trend shows that
for five years of operation it is high above the industry standard since the agency ideally earns higher
amount of revenue as compared to the total assets. Thus, the asset turnover is quick. Furthermore,
the amount of the total assets needed in the business is lesser in amount since no complex
equipment is needed in the operations. Furthermore, the asset is mainly composed of equipments
and supplies to be used for administrative purposes. Thus, the increase showed that the service
revenue is increasing much more than the total asset of the business.
Debt Ratios
Debt Ratio
0.80
0.70
0.678
0.678
0.678
0.678
0.678
0.60
0.50
0.40
0.31
0.30
0.20
0.10
0.35
0.32
0.20
0.12
0.00
2015
2016
Debt Ratio
2017
2018
2019
Industry Standards
Graph 4.8 Debt Ratio

The industry standard is constant at 0.68. The business debt ratio is lower as compared to
the industry standards. This is due to the fact that the business is not maintaining a large amount of
liability as compared to its total assets. Despite the increase in the debt ratio of the business, this is
not a clear indication of the companys performance. The upward slope figure of the debt ratio can
be greatly attributed to the strategy of the business in taking advantage of the credit terms and the
deferrals of payment of its liabilities.
Asset-to-equity
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
1.85
1.85
1.85
1.46
1.14
2015
1.85
1.85
1.53
1.46
2018
2019
1.25
2016
Asset-to-equity
2017
Industry Standards
Graph 4.9 Asset-to-equity

The industry standard for the asset-to-equity ratio is set at 1.85. There is an increasing trend
with regards to the asset-to-equity ratio due to the fact that the assets are leveraged on its equity.
This implies that the business venture will be performing better than the industry standards. Even if
the ratio is lower on the fifth year of operations as compared to the fourth year, it is still within a
reasonable proportion since the increase in the debt is also accompanied by an increase in the equity.
Debt-to-equity
1.80
1.60
1.66
1.66
1.66
1.66
1.66
1.40
1.20
1.00
0.80
0.60
0.46
0.40
0.20
0.53
0.46
0.25
0.14
0.00
2015
2016
Debt-to-equity
2017
2018
2019
Indutry Standards
Graph 4.10 Debt-to-equity

The industry standard for the debt-to-equity ratio is set at a range of 1.59 to 1.71. The start
of the operations marked a terribly low debt-to-equity ratio. This is due to the initial investment of
the partners during the start of the business venture. The following years show an increasing debtto-equity ratio marked by the increase in liabilities attributed to VAT payable and decrease in the
capital due to the withdrawals of the partners. Despite the continued withdrawals of the partners,
the a slight decrease of the ratio in the projection for the fifth year is due to the higher net income as
compared to the net incomes of the previous years which is an addition to the capital of the
partners.
Gross Profit Margin
0.18
0.171
0.171
0.171
0.171
0.171
0.07
0.08
2018
2019
0.16
0.14
0.12
0.10
0.08
0.07
0.06
0.05
0.04
0.02
0.00
-0.02
-0.01
2015
2016
Gross Profit Margin
2017
Industry Standards
Graph 4.11 Gross Profit Margin

The industry standard for the gross profit margin is pegged at 17.1 percent. The gross profit
margin is far below the industry average. This might be puzzling but it is only reasonable since part
of the agencys cost of service consist large amounts of expenses for training of recruits and for
payment of training location, and of food and meals of recruits and trainers during trainings; also,
compared to other agencies, Jobs Avenue Manpower Agency implements extensive training
programs to ensure quality service to clients. It is also worthy to take note that the said expenses are
shouldered by the agency.
Return on Revenue
0.100
0.050
0.051
0.051
0.051
0.051
0.024
0.000
2015
2016
0.001
2017
2018
0.051
0.037
2019
-0.044
-0.050
-0.100
-0.150
-0.178
-0.200
Return on Revenue
Industry Standards
Graph 4.12 Return on Revenue

The industry standard for the return on sales is pegged at 5.1 percent. It is noticeable that the
return on revenue is increasing but is below the industry standards. This is due to the high disparity
between net income and revenue. The yearly increase in net income of the agency is greater than the
annual increase in service revenue. The increase in net income is attributable to greater increase in
revenue compared to lesser increase in expenses. On the other hand, the increase in revenue per
annum of the agency is attributable to the increase in market share of the agency from the existing
of excess demand. On the first year, the return on revenue is remarkably low since the other
operating expenses incurred to start up the operations have reduced the net income significantly. In
order to improve this scenario, the agency must make their operation more efficient by reducing
expenses incurred.
0.80
0.60
0.58
0.42
0.40
0.20
0.00
0.054
0.054
0.054
0.01
0.054
0.054
-0.20
-0.40
-0.42
-0.60
-0.80
-1.00
-1.00
-1.20
2015
2016
2017
2018
Industry Standards
2019
Graph 4.13 Return on Total Assets

The industry standard for the return on assets is pegged at 5.4 percent. The first three years
of operations showed return on assets below the industry average. This is attributable to the small
number of employees deployed on the first few years which has significantly affected the service
revenue and net income. Moreover, on the first year of operation business licenses and registration
fees were incurred which are significant one-time costs. The following year showed an affirmative
effect on the return on assets which were set high above the industry standard due to the increasing
net income per year. Although the total assets also increases, the percentage of increase of the net
income is greater compared to the percentage of increase of the total assets. By year 2018, for every
Philippine Peso that Jobs Avenue Manpower Agency invested in the assets produced Php 0.42 of
net income which increased to Php 0.58 by the year 2019. The increase is attributable to the increase
of net income which is 93.54% as compared to the 39.99% increase in the total assets.
Return on Capital
1.00
0.85
0.64
0.50
0.132
0.132
0.00
-0.50
0.132
0.02
0.132
0.132
2017
2018
2019
-0.53
-1.00
-1.14
-1.50
2015
2016
Return on Capital
Industry Standards
Graph 4.14 Return on Capital

The return of capital is relatively low for the first three years as compared to the industry
standard gauged at 13.20 percent. This is because of the effect of the start-up costs and other
operating expenses to the net income. There is a rapid increase from year 2017 to year 2018 because
of the increase in net income and its percentage increase is greater compared to the percentage
increase of the capital. The notable increase in year 2019 is attributable to the decrease in capital.
Capital Budgeting Analysis

Payback Period
The payback period is 8.31 years (see Appendix K). This is reasonable due to the fact that
the agency incurred losses in its first two years of operations. Moreover, it is expected that there will
be an increase in the cash flows in the years thereafter causing the investment to be returned
between the eight to ninth year. Cash flows for the years after 2015 is assumed to be the average of
the first five years of operations. Thus, it can be inferred that the payback period can be earlier
depending on the cash flows for the succeeding years.
Net present value
The net present value is P (1,936,390.62) (see Appendix L). This shows that the business is
losing for the first five years of operations. This is brought about by the amount of investment
required by the business bureau and the loss incurred in the first two years. The discount rate used
in the computation is the weighted average cost of capital of 7.20% as computed in Appendix M.
This shows that the value of the investment today discounting the five year projection will yield cash
outflows to the firm.
Internal Rate of Return
The internal rate of return is -4% (see Appendix N). This is lower as compared to the
weighted average cost of capital of 7.20%. The difference shows that the business will not be able to
pay its debt as it will have lesser returns than its cost of capital. Moreover, it can also be inferred that
the business will not be profitable in the first five years of operations.
I. Accounting and Control Plan

The agency business shall apply the following accounting and control plan:
Cash control
Transactions with made with clients is on bank-to-bank basis, it is necessary that
access to such valuable assets is restricted from unauthorized employees. In order to avoid theft
or misappropriation of such assets, cash receipts are deposited in the bank. What will remain in
the hands of the agency is only the monthly Php 20,000 established petty cash fund.
Payroll Control
The financial manager prepares and submits the payroll schedule through the IRIS
Payroll System to the operations manager. Then, the operations manager will have to sign the
documents presented for validation and certification. The validated and certified documents
will then be submitted to the administration manager for authorization for release of funds.
After authorization, the financial manager will distribute the pay checks signed by the
administration manager and countersigned by the operations manager.
Forms and other documents

Payroll Form
This form will reflect the monthly/annual salaries and wages of employees deployed
as well as of the administration. Included are the statutory deductions/remittances to
government agencies.
Evaluation Form A
Evaluation Form A will serve as an evaluation of the agency of their employees. This
will be based on the aptitude tests administered, interview, and performance during trainings.
Evaluation Form B
Evaluation Form B will serve as an evaluation of clients of the employees deployed
to them by the agency. This will be based on the service provided by employees to the agencys
clients.
Employees/Clients Record
This will serve as records of the name of clients catered by the agency and employees
under the agency as well as their corresponding address, number, bank accounts, and other
personal/business information.
Daily Time Record
This record will show the amount of time rendered by employees deployed to
agencys clients. This will serve as the basis for the preparation of payroll schedule.
Chapter 5
Socio-Economic Feasibility
This project is not only driven by financial benefits. The proposed establishment of Jobs
Avenue Manpower Agency takes into account its socio-economic impact. The following is our
assessment of the socio-economic feasibility of creating a manpower agency.
Employment and Income

Jobs Avenue Manpower Agency will eventually provide jobs for nine people. Their job
description is primarily administrative and secretarial in nature. As the business continues to thrive,
salaries for the office employees will be increased in accordance with the professional judgment of
the proponents, taking into consideration the inflation rate.
As a manpower agency, its primary objective is to act as a recruitment and manpower service
provider of other organizations, thus, connecting employers and job seekers. Davao City, a highly
urbanized city in the province of Davao del Sur, is home to approximately 1.4 million people of
which 64.9 percent account for the working-age population (15 to 64 years old). Given these figures,
putting up a manpower agency in Davao City would greatly help not only establishments but as well
as job applicants. Business organizations will not experience any difficulties in conducting
recruitment process and overseeing the workforce. This convenience given by Jobs Avenue
Manpower Agency lessens the cost of the establishments in acquiring their personnel while focusing
their business resource to their core activities.
The agency can also help protect the welfare of the deployed personnel by complying with
labor laws, ensuring of quality management of personnel and timely payroll preparation. Currently,
the government is strengthening their effort in ensuring protection of labor force by making sure
companies comply with the labor laws.
In Davao Region, 30 labor laws compliance officers are expected to assess and assist more
than 3,000 establishments this year using the new Labor Laws Compliance System. The said
program signals the shift from pure regulation to voluntary compliance with labor laws and
regulations to protect and safeguard workers and promote their welfare. The method of assessment
now is more facilitative and developmental in approach rather than inspection, thereby, highlighting
the importance of the role of manpower agency.
With regard to the blue-collared workers under Jobs Avenue Manpower Agency, the
employment situation is advantageous for them despite the contractualization. An employee who is
under an agency benefits from the following:
The presence of a contract that ensures an employees benefits and rights
The assurance of being employed under a credible and trustworthy employer
The opportunity of acquiring and strengthening skills
Simplified job seeking process since the agency will aid the applicant in finding a suitable job
The assurance that they will receive remunerations not below the minimum wage order
Economy
The Philippines, as an open economy, promotes economic activities to flourish in the
country. As clients seek the services of the Jobs Avenue Manpower Agency and as its employees
constantly get to be deployed, so does the government continue to reap benefits from the agency for
such rendering of services.
Through the Social Security System (SSS), Philippine Health Insurance Corporation
(PhilHealth) and Home Development Mutual Fund (HDMF or commonly referred to as Pag-Ibig),
subsidy from the Philippine government and billions of contributions from different employers and
employees have been received by these agencies for its members social security, health insurance
coverage and housing concerns. Since it is the policy of the State to establish, develop and promote
these policies for its people, higher contributions toward these agencies would necessitate a higher
degree of perfection of the system which is suitable for the peoples needs, providing them ample
protection against the hazards of death, disability, sickness and other contingencies. As a manpower
agency, Jobs Avenue will be taking part in the remittances of these contributions, which is in effect,
helpful to the progress and development of the economy as the government owned
controlled/corporations aforementioned carry out their mandate.
Based on the financial projections of the Jobs Avenue Manpower Agency for its SSS,
PhilHealth and Pag-Ibig contributions from year 2015 up to year 2019 are the following:
Year
SSS
PhilHealth
Pag-IBIG
Total
2015
Php 589.00
Php 100.00
Php 100.00
Php 789.00
2016
678.00
100.00
100.00
878.00
2017
678.00
100.00
100.00
878.00
2018
806.00
115.00
100.00
1021.00
2019
806.00
115.00
100.00
1021.00
Table 5.1 Contributions each Employee Deployed
Year
Projected
Deployed
Employees
SSS
PhilHealth
Pag-IBIG
2015
69
Php 40,641.00
Php 6,900.00
Php 6,900.00 Php 54,441.00
2016
141
95,598.00
14,100.00
14,100.00
123,798.00
2017
246
166,788.00
24,600.00
24,600.00
215,988.00
2018
295
237,770.00
33,925.00
29,500.00
301,195.00
2019
377
303,862.00
43,355.00
37,700.00
384,917.00
Total
Table 5.2 Total Contributions based on the Number of Deployed Employees
Tax
With the projected increase in number of employees deployed every year, this would also
mean more taxes to be paid to the government as the agencys net income projection increases.
Furthermore, with the advent of the Bureau of Internal Revenue (BIR) strengthening tax collection,
tax remittance to the government will be bolstered as the agency will be responsible on this task.
The continuity of the manpower agency will not only help the employers and employees on a
microeconomic aspect but also the entire workforce industry and the economy as well through the
taxes that will paid both from the client and employees share.
Furthermore, the Bureau of Internal Revenue implements 21 priority programs in order to
improve tax implementation and compliance. These projects are meant to help them meet its
revenue collection target this year to allow government perform its duties to the nation. These new
policies of the BIR require companies to be constantly aware of the tax updates because if they fail
to comply, repercussions will be expensive. This suggests that BIR will be stricter and vigilant this
time. Hence, contracting a manpower agency would help establishments to stay updated in tax
updates in terms of managing personnel and would also allow establishment to comply with the
mandates, thereby, avoiding repercussions.
Millennium Development Goals

The Millennium Development Goals (MDGs) are a set of eight time-bound, concrete and
specific targets aimed at significantly reducing, if not decisively eradicating poverty, by the year 2015.
The following are the 8 development goals:
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development
Even though the time frame of MDGs is set to end on 2015, the year wherein the business
will start operating, the agency aims at helping the government out of the eight goals in eradicating
extreme poverty and hunger and promotes gender equality and empowers women by providing jobs
to our applicants, whether male or female. Jobs Avenue Manpower Agency ensures that the
deployed employees are placed in a quality working environment with proper benefits. Furthermore,
the agency endeavours to provide equal training and development opportunity to its applicants.
Chapter 6
Organization and Management Study
A. Basic Consideration in Forming the Organization

Jobs Avenue Manpower Agency, a partner, is required by law to comply with certain legal
requirements to be filed with different legal offices and obtain legal requirements from Business
Bureau, Social Security System, Department of Labor and Employment, Bureau of Internal
Revenue, Barangay Clearance and Mayors Permit. The following are legal requirements which have
to be complied by the enterprise in order to formalize its business transactions:
Basic Requirements (SEC Requirements)

1. Name Verification Slips;
2. Registration Data Slips;
3. Articles of Partnership; and
4. Joint affidavit of two partners undertaking to change partnership name, as provided in its
Articles of Partnership or as amended thereafter, immediately upon receipt of notice or
directive from Securities and Exchange Commission that another corporation, partnership,
or person has acquired a prior right to the use of that name or that name has been declared
misleading, deceptive, confusingly similar to a registered name, or contrary to public morals,
good customs or public policy (not required if the Articles of Partnership has provision on
this commitment).
Additional requirements
1. Endorsement/clearance from other government agencies.
Requirement for Application/Renewal (DOLE Requirements)

2. A filing fee of Php 3,000;
3. Certified copy of the Articles of Partnership duly registered with the Securities and Exchange
Commission (SEC);
4. A sworn statement of assets and liabilities and/or a duly audited financial statement, as the
case may be;
5. NBI clearance of the partners;

6. Income Tax Returns for the last two (2) years;
7. A verified undertaking that the applicant shall:
i.
not engage in the recruitment of children below 15 years of age or place children
below 18 years old in hazardous occupation in accordance with Republic Act No.
7610 as amended by Republic Act No. 7658 and other related laws; and
ii.
assume full responsibility of all claims and liabilities which may arise in connection
with the use of license;
8. Organizational structure and list of all officers and personnel with their respective bio-data,
two (2) passport-size ID pictures and a detailed description of their duties and
responsibilities; and
9. Specific address and location map of the proposed Office;
10. List of all authorized representatives, if any who must be at least high school graduate, with
their corresponding bio-data, two (2) passport-size ID pictures, high school diploma or
other proof of educational attainment duly authenticated, NBI clearance and Special Power
of Attorney (SPA).
11. No application shall be accepted, unless all the requirements have been complied with.
Authority to Recruit (DOLE Requirements)

Documents Required
1. Letter request by the agency;
2. Copy of current license;
3. Certification under oath of licensee of the proposed recruitment activities of the
representative;
4. NBI clearance and bio-data of the representative with two (2) ID pictures;
5. Clearance from previous agency, if applicable; and
6. Previous Authority to Recruit, in case of renewal.
The following are sample forms which have to be filled up by the enterprise in order to
formalize its business transactions:
Forms from the Business Bureau

1. Steps in the Issuance of Business Permit
2. Application Form For Business Permit
Forms from the Securities and Exchange Commission

1. SEC Form No. F-105
2. Application for Partnership
Forms from the Social Security System

1. SSS Members Data Amendment Form
2. SSS Contribution Collection List
3. SSS Certificate of Membership
4. SSS Contribution Table
5. SSS Employer Registration
Forms from the Barangay

1. Barangay Clearance
Forms from the Bureau of Internal Revenue

1. BIR Form No. 1701Q Quarterly Income Tax Return for Self-employed, Professionals,
Estates, and Trusts Including Those with both Business and Compensation Income
2. BIR Form No. 1702 Annual Income Tax Return for Corporations and Partnerships
3. BIR Form No. 1702Q - Quarterly Income Tax Return for Corporations, Partnerships and
Other Non-Individual Taxpayers
4. BIR Form No. 1702-RT - Annual Income Tax Return for Corporation, Partnership and
Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate
Forms from the City Hall

1. Mayors Permit
Code of Business Conduct and Ethics

The purpose of the Code of Business Conduct and Ethics (Code) is to provide guidance
to all employees on the conduct of the agency according to the highest ethical standards. By
adhering to the Code, the agency will uphold their Values and Attributes. Jobs Avenue will grow and
prosper with a culture of honesty, integrity and accountability which will be the agencys competitive
advantage.
Agencys Responsibilities
Jobs Avenue Managers are directed to reinforce and promote the culture of ethical
behaviour by being open and honest about business conduct and fostering a work environment that
environment that encourages employees to raise ethical concerns without the fear of retaliation. It is
important that they become a positive role model to those they lead by giving advice and guidance.
Employees Responsibilities
Jobs Avenue Employees are expected to read, understand and comply with the Code, follow
all applicable laws, do the right thing, seek guidance if with uncertainty, promptly report violations
or suspected violations of the Code, cooperate appropriately with authorized investigations and
complete all required training and certification of compliance with the Code.
The following Rules and Regulations are implemented to the employees of the agency.
1. Employees are required to report on duty on time. Tardiness and absentism should be
avoided.
2. Employees should be honest, cooperative and have a positive attitude towards their work
and colleagues.
3. The prescribed uniform should be worn when on duty. Wearing of slippers, sandos and
short pants while working are strictly not allowed.
4. All instructions given by their superiors should be accurately followed.
5. Loitering and sleeping while on duty are strictly not allowed.
6. Drinking liquor, smoking or reporting drunk while on duty or within the work premises are
strictly prohibited.
7. Conflicts with workmates or supervisors should be reported to the administration.
8. Physical violence towards colleagues, and customers should be reported and is subject to
termination of contract.
9. Formal tasks should be prioritized before entertaining personal requests.
10. Respect should be exercised towards their boss and all high-ranking officials in the
workplace.
11. Supplies and materials should never be used for personal interests.
12. Daily time records should only be punched by its corresponding employee.
13. Personal hygiene should be practiced at all times
14. Employees should submit themselves for inspections to the guard on duty after working
hours.
15. Relationships between colleagues should be kept professional.
16. Any forms of theft and unauthorized alteration clients records are considered a grave
misconduct.
17. Incidents reports submitted by the clients management to the agency will be deliberated
accordingly. Warnings are given for the first three (3) offenses, suspension for the fourth
offense then termination of contract for the succeeding offenses. Grave misconducts,
frequent violations and illegal acts may be subject to immediate termination of contract.
B. Form of Ownership
The type of ownership for coming up this project is partnership. This decision is aligned
with the assumption that the partners have enough amount of financial capital to carry the burden at
the start of the manpower agency business. It is also in the belief of the consulting team that the
complexity of building up corporate forms of ownership would outweigh the benefits of having a
corporate form of organization.
Advantages
One of the key advantages of choosing partnership is that it is basically easy to establish.
With more than one owner, the ability to raise funds may be increased because of greater borrowing
capacity. Moreover, there is a wider pool of knowledge, skills and contacts and an improved
management of the different partners.
Disadvantages
A distinct disadvantage of building up a business is that the owners which are called the
partners generally remain personally liable for all the business debts. When a business runs into
financial problems, the creditors can bring lawsuits against the partners. Moreover, the action of one
of the partners is prejudicial to the others. Generally, the liability of the partners is unlimited
compared to that of an incorporator.
C. Organizational Chart
Illustration 6.1 The organizational chart
D. Officers and Key Personnel
Officers and
Key Personnel
Managing
Partner
No. and
Labor
Classification
One
Requirements
He/She is one of the partners
To ensure the standards set by the company are met.
(e.g. target income, cost budget, financial and
operational growth)
To guarantee that the marketing program are in
placed
To ensure that the contracts between the agency and
the clients are met and satisfied
To guarantee that the contracts between the agency
and employees are followed
To validate, encode, and update the master list of
clients account profile
Head of
Operations
One
To manage the effectiveness and efficiency of

Human Resource
To act as the interviewer of applicants
To ensure that high quality of service is given to
clients
Officers and
Key Personnel
Accounting
Officer
No. and
Labor
Classification
Requirements
One
To keep full and accurate accounts of receipts and

disbursements in the books of the organization
To have custody and be responsible for all funds
To deposit in the name of company in such bank
designated, all money/funds
To prepare annual statements showing financial
condition of the company and other required financial
reports
liaising with auditors to ensure annual monitoring is
carried out;
To manage the payroll of the deployed workforce
To oversee the remittance of the clients and
employees share contribution (eg. PhilHealth, PagIBIG,)
Legal
Consultant
One
To provide consulting services on matters related to tax

and insurance,
legal and program issues to actively manage risks
To review, draft and negotiate legal documents (eg.
contracts)
Receptionist
One
To receive visitors (eg. client and staff), directing them

to the correct personnel
To answer inquiries in person, by phone and on e-mail
To receive, check the completeness and file the
applicants submitted requirements
To encode the applicants account profile
Officers and
Key Personnel
Liaison
No. and
Labor
Classification
Requirements
Two
To ensure an effective communication and cooperation

between the agency and existing clients
To supervise the deployed labor force
To carry out door-to-door visits to hired applicants
To deliver important documents
To remit contributions to different government owned
and/or controlled corporations and agencies (eg. PagIBIG, SSS, PhilHealth, BIR)
Training
Personnel
Three
To administer and evaluate the personality test given to

applicants
To develop and compile training resources, modules and
manuals
To prepare and facilitate seminars and trainings
To validate and update employees profile accounts
E. Project Schedule
Compliance with Business Bureau
Compliance with Department of Labor and Employment
Compliance with Securities and Exchange Commission
Compliance with legal requirements (Mayor's permit, SSS, PHIC, Pag-IBIG, Baranggay clearances)
Obtain rent contract with lessor for office space for five years
Hire Administration employees
2014
Start extensive marketing promotions

Hiring and training of employees to be deployed
Purchase necessary office equipment, office supplies, and furniture and fixtures
Open bank current account
Installation of IRIS Payroll Business System in the computer database
Coordinate with appropriate government agencies and accredited training institutions and/or
personnel
Commence operation
Submit proposal to prospective clients
Engage in biddings to solicit clients
Provide manpower services to clients
Sign contract with clients
2015
Repair and maintenance of office space

Pay operating expenses
Compliance with statutory contributions, taxes and other government impositions
Deployment of employees
Evaluation and deliberation of operations

2016

Expansion of market demand
Renewal business licenses and permits
2017

2018

2019

Table 6.1 The Project Schedule
APPENDICES
APPENDIX A
Sample Client-Employee Contract
TERMS AND CONDITIONS OF EMPLOYMENT
Employer: ___________________
To: ________________
Employment began on ____________ and the following terms of employment applied on
____________.
1. Job Title
You will be employed by the company as _________________.
2. Remuneration Hours of Work and Duties
a. You will be paid at the rate of PHP_______________ per day, payable every fifteen(15)
days by cheque. Salaries are reviewed annually.
b. Your normal working hours are from _______ to ______, _______________ including a lunch
break of one hour.
c. Your duties are those which the Company may from time to time consider as falling
within the general ambit of the title of your appointment as _____________ but the
Company may in its discretion require you to take any appointment or duties it
considers appropriate to your abilities.
d. In accordance with the Working Time Regulations, to perform your duties fully and
properly it may be necessary for you to work beyond these hours.
3. Holiday Entitlement
Your entitlement to holidays and holiday pay is governed by the following provisions:
a. Holiday Year
The Companys holiday year runs from 1st January to 31st December.
b. Holiday Entitlement
i. Until 1st January in the first year of your employment you will be entitled to
____days paid holiday.
ii. During each full holiday year of service your holiday entitlement with basic
pay in addition to public holidays is ______ working days per year.
4. Absence for any Cause
a. In the event of your being absent for any reason other than pre-arrange holiday you
be required to report to the agencys operations manager.
b. If the absence is not established to the Companys satisfaction as genuine absence
on account of sickness, you will not be paid for such day or days absence.
c. In addition to the provisions of (b) above, the Company may take disciplinary action
in appropriate circumstances.
5. Sickness and Injury
a. If you are absent on account of sickness or injury you (or someone on your behalf)
must inform the Company of the reason for your absence as soon as possible and
must do so no later than the end of the working day on which the absence first
occurs.
6. Termination of Services
Notice by the Agency will be give 2 weeks before termination or end of contract. You will be
informed if renewal or termination of contract will be done.
7. Confidentiality
You should not at any time during your employment (except so far as is necessary and
proper in the course of your employment) or at any time after your employment has
terminated disclose to any person any information as to the practice, business dealings or
affairs of the company or any of the companys customers or clients or as to any other
matters which may have come to you knowledge by reason of you employment.
8. Outside Employment
You are expected to devote your whole time, skill and attention during working hours to
you works for the Company. You must not engage in any other work outside working hours,
pain or unpaid, without prior written permission of the management. Permission will not be
granted for you to engage in any activity which the Company believes to be direct or
indirect competition with the Companys business or which in the Companys view does or
might impair you ability to perform you duties for the Company fully and efficiently.
I accept the above terms and conditions as forming part of my contract of employment
Signed (the Employee)
Signed . (on behalf of the Agency)

Dated.
APPENDIX B
Sample Client-Agency Contract
MEMORANDUM OF AGREEMENT
Know all men by these Presents:
This Agreement made and executed by and between:
_________________________________________________________, (operations managers name)
hereinafter referred to as FIRST PARTY; and
__________________________________________________________, (clients name), hereinafter
referred to as SECOND PARTY;
Witnessed:
That the FIRST PARTY is the General Manager of JOBS AVENUE MANPOWER AGENCY, a duly licensed
business establishment, engaged in providing manpower services to other business entity such as
individuals, partnerships or corporations;
That the SECOND PARTY is the Officer In-Charge of ____________________(company name), in need if
manpower services in the conduct of its business such as, but not limited to, as herein below stated;
That the FIRST PARTY agrees to provide the manpower services requirement of the SECOND PARTY
under the following Terms and Conditions, to wit:
1. FIRST PARTY will provide manpower services through contractual employees for the
manpower requirements of SECOND PARTY including _________________ (positions needed).
2. SECOND PART shall inform FIRST PARTY Five (5) days before scheduled date for any
request on seasonal contract employee or additional contractual employees.
3. FIRST PARTY will execute recruitment procedures for additional or replacement of staff,
give basic training and orientation, screening and testing for skills and behavior, implement
disciplinary actions, conduct regular monitoring and random check-ups, conduct safety
inspections, administer payroll system: timekeeping, computation of salaries, and payments
to required Government agencies.
4. After one month training, the duration of the contractual employee is ____months. FIRST
PARTY will give notice to SECOND PARTY shall advise FIRST PARTY if SECOND PARTY will
request FIRST PARTY to extend the contractual employees services or will provide for
replacement of the said employee.
5. Contractual employees performances will be assessed after ____ months from the date the
employee commenced his job. If SECOND PARTY finds the contractual employee performing
poorly, FIRST PARTY will find replacement for the said employee within fifteen (15) days
from the date of discovery of such inefficiency.
6. SECOND PARTY shall pay FIRST PARTY PHP 2,000.00 as referral fee if SECOND PARTY
intends to absorb the contractual employee as regular worker before or after the
employees contract expires.
7. Where there are health hazards, SECOND PARTY shall provide personal protective
Equipment for preventive health measures for the contractual employees.
8. Reported losses by SECOND PARTY on its inventory which is done on a _____ basis will be
charged to the contractual employee on the first pay day after notice has been received by
FIRST PARTY.
9. SECON PARTY agrees to pay FIRST PARTY the basic rate of:
Contractual Employee A: PHP ____________
Contractual Employee B: PHP ____________
Plus employers share on government required remittances and agency fee of ten percent of
direct labor cost of contractual employee of FIRST PARTY providing services for SECOND
PARTY. Breakdown of payment is stated in the Statement of Account.
10. Increases and/ or adjustments of the items included in the gross billing imposed by existing
laws shall be charged to SECOND PARTY and will be distributed by the FIRST PARTY to
contractual employees. Overtime rates and Holiday premiums shall be in accordance with
the New Labor Code.
11. Cut-off day for computation of contractual employees salary is every 15th and 30th day of
the month. FIRST PARTY will furnish a Statement of Account to SECOND PARTY within two
(2) days after the cut-off dates. SECOND PARTY will be billed by the FIRST PARTY at the end
each month for the two (2) payroll periods accrued. Payday is every 15th and 30th day of the
month.
12. Both parties, FIRST PARTY and SECOND PARTY, reserve the right to terminate the contract
at anytime with a fifteen (15) days prior written notice of termination.
13. This agreement will take effect on ______________.
IN WITNESS Whereof, the parties hereto signed this agreement this ___day of _______ at Davao
City, Philippines.
By: ______________________
FIRST PARTY
(CLIENTS COMPANY NAME)
By: _____________________
SECOND PARTY
APPENDIX C
Application Form for DOLE Registration of Manpower Agencies
APPENDIX D
Wage Order
APPENDIX E
Forecasted Demand
2012 2013
Janitor/ Janitress/ Garbage collector
Housekeeper/ helper/ room attendant/ decorator
Bagger/ Packer/ Repacker/ Bundler/ Sorter/ Checker/ Counter checker
Food attendant/ foodcourt crew/ food processor/ Food taker/ kitchen
staff
Inventory clerk/ inventory staff control/ stock clerk
Washer/ Dishwasher/ Laundry worker
Promo attendant/ promo boys/girls/ promo diser/ promo merchandiser
2014
2015 2016 2017 2018 2019
735
543
640
167
416 597 551 521 556 543

3027 1245 1480 1917 1548 1648
77
185
184
149
173
169
163
168
105
183
69
303
42
60
3
140
659
348
1269
32
269
197
447
158
323
202
573
110
417
249
763
100
336
216
594
123
359
223
644
111
receptionist/ receiving staff/ lounge lady/ attendant

restaurant staff/ waiter/ waitress/ dining crew
sales clerk/ sales attendant/ sales demo/ sales helper/ saleslady/
salesman
service crew/ store crew/ storekeeper
utility worker/ maintenance crew
cashier/ general cashier/ counter person
82
496
45
592
55
1725
61
54
56
57
56
937 1085 1249 1090 1141
340
510
2098
315
395
751
210
356
1596
430
584
252
777
564
964
308
Clerk
TOTAL
709
9
36 251
98 128 159 129
6564 3595 10613 6924 7044 8194 7387 7542
923 1099
582 525
586 711
305 288
933
557
754
300
985
554
684
298
APPENDIX F
Forecasted Supply
Janitor/ Janitress/ Garbage collector

Housekeeper/ helper/ room attendant/ decorator
2012 2013 2014 2015 2016 2017 2018 2019

131 100
1
77
59
46
61
55
88
15
5
36
19
20
25
21
Bagger/ Packer/ Repacker/ Bundler/ Sorter/ Checker/ Counter checker

Food attendant/ foodcourt crew/ food processor/ Food taker/ kitchen staff
72
13
79
9
5
0
52
7
45
5
34
4
44
6
41
5
Inventory clerk/ inventory staff control/ stock clerk

Washer/ Dishwasher/ Laundry worker
29
2
32
0
0
3
20
2
17
2
13
2
17
2
16
2
Promo attendant/ promo boys/girls/ promo diser/ promo merchandiser

receptionist/ receiving staff/ lounge lady/ attendant
64
6
42
10
0
2
35
6
26
6
20
5
27
6
24
5
60
9
199
176
256
522
24
50
152
415
194
202
5
7
8
11
18
53
30
22
120
201
156
259
20
26
93
209
123
171
18
18
74
140
99
161
22
22
96
183
126
197
20
22
87
177
116
177
118 1023
822
654
833
770
restaurant staff/ waiter/ waitress/ dining crew

sales clerk/ sales attendant/ sales demo/ sales helper/ saleslady/ salesman
service crew/ store crew/ storekeeper
utility worker/ maintenance crew
cashier/ general cashier/ counter person
Clerk
TOTAL
1627 1324
APPENDIX G
Letter to the Department of Labor and Employment
August 11, 2014
JOFFREY M. SUYAO
Regional Director
Davao City Field Office
Department of Labor and Employment
4th Floor Davao Ching Printers Bldg.,
Corner Dacudao Ave. and Lakandula St.,
Agdao, Davao City
Dear Sir Suyao:

We are 5th year Accountancy students from the BSA-5A class of the Ateneo de Davao University who are
currently taking our course subject on Management Consultancy. A requirement of such subject is the
conduct of a project feasibility study on putting up a manpower services agency in Davao City. In line
with this, we would like to request for some relevant information relative to such study.
It is, however, a constraint as to how we would evaluate the feasibility of such business proposal given
the scarce sources of data. Due to this circumstance, we would like to request for the following
information to be furnished if available:
Labor market information involving manpower agencies from 2009-2014.

Demand and supply of workers for hotel, mall and school employees (i.e. janitorial services,
dietary and kitchen personnel, waiter, utility personnel, housekeeping personnel, bellboy, sales
agent, promodiser, receptionist, cashier, clerical services, and etc.) from year 2009 up to 2014.
It is with fervent hopes and prayers that your approval would be granted.
Thank you!
Sincerely,
Nikka Angela Tuquib

Group Representative
APPENDIX H
Code of Ethics
When providing Human Resource Solutions to our Clients, We, Jobs Avenue Manpower Agency
adhere strictly to our Code of Ethics.
Confidentiality - We adopt and maintain high standards in safeguarding the privacy and
confidentiality of information entrusted to us and will ensure complete
protection from these being compromised in any way.
Honesty &
We will be transparent and accountable for all our word, action and conduct
Integrity -
when dealing with our clients, candidates and all intermediaries.
Respect-
We uphold the values of respect and courtesy and will always make them
manifest in our daily conduct of business.
Compliance-
We will comply with all regulatory laws of the country, standard operating
procedures of the company and observe all industry good practices in the
conduct of our business.
EMPLOYEE GUIDE TO THE CODE OF ETHICS
Standard of Excellence
Everyone who works for Jobs Avenue is responsible for upholding our values, maintaining a good
business environment and ensuring ethical business practices. You can depend on management to
do everything in its power to meet the Agencys standard of business conduct. Were depending on
you to do the same. The following are the principles and policies which apply to all employees of the
agency.
Always obey the law

Business should be conducted in compliance with all laws and regulations that apply to the market
we serve. Complying with the law is the minimum standard we all must meet in carrying out our
responsibilities at Jobs Avenue.
Ensure employee safety and health
Providing a safe and healthy working environment is extremely important. We are responsible for
complying fully with all environmental, health and safety laws and regulations worldwide. Every
employee is expected to prevent accidents by maintaining a safe work environment and following
safe work procedures and practices.
Treat people with respect and fairness
Our obligation is to ensure fairness in the hiring and advancement of all employees without
discrimination. We all have a personal responsibility for maintaining a safe and respectful work
atmosphere, free of abusive or unprofessional conduct. Every employee is expected to respect other
people as individuals and to treat them with dignity.
Avoid conflicts of interest
Charges of misconduct can arise any time our personal interests and those of our company appear
to differ. Thats why it is important to avoid any relationship or activity that could compromise, or
even seem to compromise, your ability to make objective decisions on the job.
Reporting and administration of this policy
All employees are expected to bring all business issues and developments that could adversely affect
the companys performance or reputation to managements attention, including any violations of our
standards of ethical business conduct.
APPENDIX I
Letter to the Business Bureau
August 1, 2014
ATTY. LAWRENCE D. BANTIDING
Officer-In-Charge
Business Bureau
G/F, Sangguniang Panlungsod Bldg.
San Pedro St., Davao City
Dear Atty. Bantiding:
We are 5th year Accountancy students from the BSA-5A class of the Ateneo de Davao University
who are currently taking our course subject on Management Consultancy. A requirement of such
subject is the conduct of a project feasibility study on putting up a manpower agency in Davao
City. In line with this, we would like to request for some relevant information relative to such
study.
It is, however, a constraint as to how we would evaluate the feasibility of such business proposal
given the scarce sources of data. Due to this circumstance, we would like to request for the
following information to be furnished if available:
1. Number of existing businesses registered as manpower agencies in Davao City
2. List of businesses registered as manpower agencies in Davao City
We are hoping for your kind response on our request. Thank you!
Sincerely,
Nikka Angela C. Tuquib

Group Representative
Noted by:
Ms. Rhea Jane V. Carpio, CPA

Management Consultancy Instructor
APPENDIX J
DOLEs Capital Requirement and
Implementation of the 10% Administrative Overhead Cost
APPENDIX K
Payback Period
Year Net Cash Flow

1
(2,662,192)
2
(64,249)
3
56,329
4
1,617,840
5
3,104,231
6
410,392
7
410,392
8
410,392
Payback Period
Investment
5,662,192
5,726,442
5,670,112
4,052,272
948,042
537,650
127,258
8.31
APPENDIX L
Net Present Value
Data
7.20%
(3,000,000)
(2,662,192)
(64,249)
56,329
1,617,840
3,104,231
NPV
Description
Annual Discount Rate equal to Cost of Capital
Initial cost of investment
Return from first year
Return from second year
Return from third year
Return from fourth year
Return from fifth year
PHP
(1,936,390.62)
APPENDIX M
Weighted Average Cost of Capital
WACC
Long-term debt
Savings
% in Total Cost of Capital Weighted Cost

50.00%
14.40%
7.20%
50.00%
0%
APPENDIX N
Internal Rate of Return
Data
7.20%
(3,000,000)
(2,662,192)
(64,249)
56,329
1,617,840
3,104,231
IRR
Description
Annual Discount Rate equal to Cost of Capital
Initial cost of investment
Net Income from first year
Net Income from second year
Net Income from third year
Net Income from fourth year
Net Income from fifth year
-4%
APPENDIX O
Sample Flyer
APPENDIX P
Sample Newspaper Advertisement
APPENDIX Q
Inflation Rate Source
BIBLIOGRAPHY
A Citizens Manual for Registration of Partnership and Corporation. Securities and Exchange
Commission. June 30, 2013. Date of Retrieval: September 4, 2014. URL:
http://iregister.sec.gov.ph/PDFs/registration%20of%20corporations%20and%20partnership
s.pdf
Brother. Fax Machines. Retrieved August, 9 2014, from http://welcome.brother.com/phen/products-services/fax-machines.html
Brother. Other Products. Retrieved August, 9 2014, from http://welcome.brother.com/phen/products-services/other-products/gx-8250.html
Carrier. Carrier icool 0.50 HP. Retrieved August, 9 2014, from http://www.carrier.com.ph/carriericool-0-5-hp
Code of Ethics. DIS Manpower. Copyright 2014. Date of Retrieval. September 9, 2014. URL:
http://www.dimensearch.com.sg/aboutus.php?tab=ethics
Department of Labor and Employment. Department Order 18-A series of 2011. August, 8 2014,
from http://www.dole.gov.ph/fndr/bong/files/DO%20No_%2018-A-11.pdf
Department of Labor and Employment. DOLE answers most asked questions on DO 18-A.
Retrieved
Retrieved
August,
8
2014,
from
http://philconstruct.com/Page.aspx?id=36&pid=43&cid=714
Doing Business Organization. Starting a Business in Davao City, Philippines. Retrieved August,
92014, from http://www.doingbusiness.org/data/exploreeconomies/philippines/sub/davaocity/topic/starting-a-business
Department of Labor and Employment. Republic of the Philippines Region XI. Date of Retrieval:
August 15, 2014. URL: http://ro11.dole.gov.ph/index.php
Documentary Requirements for Registration of Partnership and Corporation. Securities and
Exchange Commission. June 30, 2013. Date of Retrieval: September 4, 2014. URL:
http://www.sec.gov.ph/gsr/primary/pdf/requirements%20for%20registration%20as%20jun
%202013.pdf
Employee Guide to the Code of Conduct. Manpower Group. 26th November 2007. Date of
retrieval:
September
9,
2014.
URL:
https://experisredcarpet.silkroad.com/map_images/main/SiteGen/Onboarding/Content/Up
loads/Unplaced_Documents/Experis_Code_of_Conduct_FA.pdf
HDMF
Schedule.
Retrieved
August,
8
2014,
from
http://amaranthbiz.files.wordpress.com/2013/01/hdmf-sched-of-contributions-final.jpg
Manpower Group Financial Statements. FindTheBest. March 31, 2014. Date of Retrieval:
September 9, 2014. URL: http://income-statements.findthebest.com/l/4058/Manpowergroup
Manpower Recruitment or Supplies Agencies Services. Retrieved August, 8 2014, from
http://www.servicetax.gov.in/st-profiles/manpwr-recruitmt.pdf
Marcelo M. Pedalino (2012, May 15). DOLE implements new rule on subcontracting manpower
services
.
Retrieved
August,
8
2014,
from
http://r08.pia.gov.ph/index.php?article=1301336981805
Memorandum of Agreement. Skillworks Manpower Services. Copyright 2014
Personal
Loan
Rates
in
Philippines.
http://www.imoney.ph/personal-loan
Retrieved
August,
2014,
from
Payment Schedule for SSS, PHIC, and

HDMF. Retrieved August, 9 2014, from
http://mpm.ph/sss-philhealth-pagibig-payment-deadlines-penalties/ Terms and Conditions
of Employment. Free Lance UK. Copyright 2010. Date of Retrieval: September 10, 2014.
URL: http://www.freelanceuk.com/resources/fuk_docs/employment_contract_template.pdf
Rules and Regulation. ANLEO Maintenance and Allied Services, Janitorial and Manpower
Services. Copyright 2014.
Rules and Regulations Governing Private Recruitment and Placement Agency for Local
Employment. Department of Labor and Employmen. June 5, 1997. Date of Retrieval: September
4, 2014. URL: http://www.ble.dole.gov.ph/issuances/PRPA_Guidelines.pdf
SM Appliance Center. Retrieved August, 9 2014, from http://www.smappliance.com/categoriesproduct/20?sort_by=sell_price&sort_order=ASC&field_brands_tid[]=173
SM Appliance Center. Retrieved August, 9 2014, from http://www.smappliance.com/categoriesproduct/20?sort_by=sell_price&sort_order=ASC&field_brands_tid[]=173&field_brands_tid[]
=171&field_brands_tid[]=174&field_brands_tid[]=172
SM
Appliance
Center.
Retrieved
August,
9
2014,
from
http://www.wilcon.com.ph/airconditioner/78906-carrier-wcarg006ec-05hp-i-cool-timeraircon-153400000768.html
Proposal Letter
E. Jacinto Street, Davao City
Dear Miss Carpio,
I appreciate the opportunity to discuss with you the new business that you want to venture in and
for considering our firm to provide you with a study concerning the feasibility of having a
manpower agency.
Anticipated Benefits
With an idea of a business with a potential for profitability and competitiveness bolstered by
quality of service and well-founded work ethic, putting up a manpower agency is not anymore new
in the business environment. Despite the huge capital needed during the start-up of the business as
mandated by law, a manpower agency provides high levels of profit for you since there is already an
existing market with the presence of unsatisfied demand. A manpower agency like you can focus
efforts on the management and success of one location but it is necessary that you must build
relationships with potential employees and clients. With the intention to promote a good business
reputation and extensive training programs for employees, it will not be anymore hard for you to
market the products.
Approach
Phase I. Identifying project requirements
The objective of this phase is to identify the various project requirements before the entire project
cycle could begin. The objectives of this phase include enumerating the legal and research
prerequisites which are vital in commencing any planned program. Any necessary steps to be
conducted in this phase shall be coordinated with you in order to allow the proponents of executing
the required job.
Phase II. Layout project specifications
Using the information gathered in Phase I, the proponents will use this to assess the limitations and
potentials of the business venture. The information in this phase will mold the allowable
specifications of the business venture and provide rooms for possible ideas which will come from
you which shall be integrated with the teams idea. This phase will also generate the business
profile, the appropriate financial and activity schedules.
Phase III. Integrate gathered information

This phase processes the data collected to produce meaningful information relevant in assessing
the feasibility of the prospective business venture. The output of this phase will provide you and the
team with a common understanding as to what the results of any research will bring.
Phase IV. Assist in considering venture

The purpose of this phase is to discuss with you the project as a whole. This includes the location,
profitability and other vital information needed in considering the project venture. The proponents
will assist in the implementation of the said venture.
I believe the aforementioned approach will maximize the benefits to you from engaging the services
of our consulting personnel. Our assistance results in an organized and thorough approach to
defining and documenting your necessary information system. In addition, our assistance will
provide technical expertise in the area of costing, capital budgeting, legal reportorial requirements,
and an independent viewpoint regarding the matter. Throughout the study, we will work closely
with existing manpower agencies and potential clients and employees in Davao City in evaluating
your industry.
Most important, we believe our approach will ensure that the business venture will acquire
adequate business information to meet current and changing needs. The teams professional due
care and competence are on the line when we issue our final format report. Because of this
commitment, we have to be sure that management is able to make a rational and economic
decision.
Our Firm
We have five consulting professionals in our firm who render distinguished service to a wide
variety of clients.
We believe that the years of training that we have acquired in Ateneo de Davao University
particularly in the fields of Accounting, Financial Management, Auditing and Assurance Services,
Productions and Operations Management, Quantitative Analysis, Business Statistics, Investments,
Economics, Business Law, Taxation, Accounting in CIS Environment, Management Advisory
Services and Managerial Accounting, are all persuasive reasons why our team should be selected to
perform this project.
I am accountable in this project. I am expert in legal matters while Cavin Jhon Cabarlo, Aeryl Raz,
Sigrid Cubil and Hazel Mark Abarquez are experts in statistics and taxation, product costing,
financial management and marketing, respectively. Senior Consultants in our firm will assist me in
this project. We can start as soon as possible and can see to it that this project will be done within a
four-to six-week time frame. Based on the attached work plan, the approximate professional fee
and other expenses will be PhP 50,000. Fifty per cent of the Php 50,000 shall be collected at the
perfection of the contract. The other fifty per cent shall be paid when the project is completed
which is estimated to be three months after the signing of the contract. Update on the progress of
the project shall be reported every end of the month. The out-of-pocket expenses shall form part of
the Php 50,000.
If you find this in line with your interests, this will serve as our contract.
Sincerely yours,
Nikka Angela Tuquib

Legal Head
Prime Consulting
Conforme:

September 11, 2014

JobsAvenueManpowerAgency PDF

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

JobsAvenueManpowerAgency PDF

Caricato da

Copyright:

Formati disponibili

Ateneo de Davao University

School of Business and Governance

A Feasibility Study of Manpower Agency in Davao City

In Partial Fulfillment of the Project in

JOBS AVENUE MANPOWER AGENCY |i

To Region XI Department of Labor and Employment, City of Davao Business

Graph 4.12 Return on Revenue

JOBS AVENUE MANPOWER AGENCY |v

JOBS AVENUE MANPOWER AGENCY |1

A. Name of the Project

JOBS AVENUE MANPOWER AGENCY |2

C. Descriptive Definition of the Project

Contracting manpower services provides significant advantages to an

JOBS AVENUE MANPOWER AGENCY |3

JOBS AVENUE MANPOWER AGENCY |4

The finance department is accountable for the management of financial

D. Projects Long-range Objectives

JOBS AVENUE MANPOWER AGENCY |5

The enterprise has a specific target market, focusing on local employment.

There are readily available supplies and sufficient access to resources.

The office is easily accessible to the clients and employees.

There should be a well-designed database management information system which will be

JOBS AVENUE MANPOWER AGENCY |6

Organization and Management Feasibility

The enterprise must be in compliance with the labor laws.

JOBS AVENUE MANPOWER AGENCY |7

F. Highlight of the Project

JOBS AVENUE MANPOWER AGENCY |8

G. Major assumptions and summary of findings and conclusions

JOBS AVENUE MANPOWER AGENCY |9

To track application processes according to new application, pending, approved, denied or

To process thousands of applicant information.

Send email resumes directly to clients/principals.

To integrate to companys website to allow data sharing between clients

Conclusion and Recommendation

Janitorial; includes janitors, garbage collectors, maintenance and utility crew

Housekeeping; includes housekeeper, helper, and room attendant

Packer; includes baggers, packer, bundler, sorter, and checker

Food Court Crew; includes food attendant, and kitchen staff

Inventory Clerk; includes inventory staff control and stock clerk

Washer, Dishwasher, Laundry Worker

Promo attendant; includes promo boys/girls, promodiser, and promo merchandiser

Receptionist; includes receiving staff, and lounge lady

Restaurant Staff; includes waiter/ waitress, and dining crew

Service Crew; includes store crew and storekeeper

Cashier; includes counter person

All business establishments

Packers, promo attendant, sales clerk, cashier

Service crew, maintenance and utility worker

Warehouses and Factories

Food court crew

Malls and Schools

Malls and Warehouses

Washer, Dishwasher and Laundry Worker

Hotels and Schools

Hotels and Malls

Malls and Restaurant

Malls and Offices

Table 2.1 Jobs and Market Segment

Excess Vacancies for 2012, 2013, and 2014

Graph 2.1 Excess Vacancies for 2012, 2013, and 2014

Five-Year Excess Vacancies Projection

Graph 2.2 Five-Year Excess Vacancies Projection

Applicants for 2012, 2013 and 2014