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CHAPTER 3
METHOD
This chapter presents the research design, participants, instrument, data gathering procedure
Research Design
The study used the descriptive design using documentary analysis. This method was very
effective in gathering data by observing the location business and the transaction, or seeking to
describe in relating analysis to the accounts of Nine O’ One Paint Center & Enterprises in
Participants
The participant of this study was the owner of Nine O’ One Paint Center & Enterprises in
Surigao City. This business was legally registered in BIR and DTI and was operating for more
than a year, and lastly the financial analysis needed in the study was available.
Instrument
The researchers asked permission to the owner to gather data. It was used to utilize the
documentary analysis in gathering information specifically the business transaction that was used
in computing and in analyzing the financial analysis. Validation of the instrument was presented
to the expert. It consisted with the following documentary profile of the business and documents
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The researchers conducted this study by sending first a letter, asking for permission from
the Dean of the College of Business and Technology to perform the study outside the school.
Then, another letter was sent for the participants and it was approved and signed by the
researchers’ adviser and experts. One more letter was sent to the owner of Nine O’ One Paint
Center & Enterprises to ask for their approval for the administration of the documentary analysis
to their business. After the approval, the data gathered were computed, interpreted and analyzed
Ethical Considerations
The researchers considered the following ethics during the conduct of this research:
Consent from the respondents was taken and appropriate permission was ensured for the
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Data Analysis
LIQUIDITY RATIOS
Quick Ratio 1 & Above Can pay back its current liability
Gross Profit Margin 35% to 45% Indicates that the company can make
a reasonable profit
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Net Profit Margin 10 & Above It means that the companies that are
the best organized are the ones that
are the most efficient
Debt to Asset Ratio If less than 1 Indicates that the bulk of asset
funding is coming from equity
Debt to Equity Ratio If less than 0.5 Most of the company’s assets are
financed through equity