3 ANGELS FURNITURE SHOP

Submitted by:

Submitted to:

CARDINEZ, Jared Melver R.

Mr. Alfred Christopher M. Agoot,

DE AUSTRIA, Via Samantha B.

MANGAY-AYAM, Ophilia C.
VALMORES, Jeishela Mae D.

CPA

Company Background
3 Angels Furniture Shop is a privately owned family business and it was
established in the year 2009 by Mrs. Elma Castro. It was initially established
at Pagdalagan and transferred in the year 2011 to Disso-or, Bauang, La
Union which is now a warehouse that is located along the highway and
where the customers go to make an order. The place of the manufactory is
located at Bacsil.
The owner was highly motivated to run a business of a furniture shop
because she saw the business of her siblings, which is also a furniture shop,
became popular and successful. The name of her business came from her 3
granddaughters because they serve as a blessing to her family, same with
the said business.
The main products of the 3 Angels Furniture Shop are sala set, dining
set, doors, and bed; where the main raw materials they used are Mahogany,
Gmelina and Molave. Their products are seen from other businesses like Go
INN and some beach resorts, Costa Villa and Cuisina. The farthest place of
delivery they made is in Batangas and Tagaytay.
Their philosophy is to manufacture well designed products; making use
of both traditional techniques with the machinery and labour. They always
make sure to provide high quality furniture, built for a long lifespan and
offering excellent value.

Sales and Cash Receipts

Shipping
Department
Customer
Department

Production and
A
Output Plan

Customer Order

Check Raw Materials

Plan Output and Determine Sale Price

C.O.

Output Plan

Output Plan

A
B

Sale Price

Customer

Down Payment

Manufacture Products

Approved Customer Order

Receipt
Receive down payment, issue receipt and approve customer order

A.C.O.
Output Plan

Customer

Manager

Down Payment

Ship Products

Approved Customer Order

B
A.C.O.

Cash

Customer

Output Plan
Receipt
Collect Balance and Issue Receipt

Customer

ManagerPROCESS
REVENUE

Cash

The sales and cash receipts department manager receives a customer order
from the customer and plans the output and determines the price of the
product. The output plan is sent to the production and shipping department
and the sale price is relayed to the customer.
Then, the manager receives down payment from the customer and
issues receipt to the customer and approve the customer order. After
approval, the approved customer order is sent to the production and
shipping department.
The production head first receives the output plan and check the raw
materials available for production. Then; upon receipt of the approved
customer order, it is reconciled with the output plan and the products are
manufactured.
After production, the workers ship the products and the approved
customer order and output plan is filed in the production and shipping
department.
Upon delivery, the manager collects the remaining balance from the
customer and issues receipt to the customer.

ANALYSIS CONTROL
The business entity requires fifty percent down payment to process customer
order, and negotiate the term of payment of balance. They make sure that
the payment was made in full before they deliver the order. They also
established a good customer relationship, for they always want to satisfy the
customers expectation and provide after-sales customer service. Upon
completion of product, they may deliver immediately or wait for the call of
the customer, whatever the customer wants.

The way of getting orders from the customers are informal, in the form
that the customers show the desired output or preferred design and
discussed with them the measurements. The business operates in job-order
basis. It lacks advertisements and also do not have a regular supplier. The
regular workers are also limited, and only call for additional when needed.
The business had no record or book of accounts, the only evidence of
payment was the receipt given to the customer every time they pay. They
also allow their production workers to accept the payment of the customer
upon delivery, which may give them the opportunity to commit fraud. The
location is located along the highway and is an open area, despite of the
products being displayed they dont provide much security to the items.