“A feasibility study on establishing

CEBB Accounting Review Center in

Parañaque City”

Researchers
Leader Researcher: Bebanco, Jerico Frank Alwyn A.
Co-Researchers: Bantaculo, Sheina Mae A.
Castillo, Nicole T.
Estolloso, Clarissa P.
 Introduction
This study consists of two main parts.
 First part is the market study
- to determine the availability of the market
when the service is introduced.
 The second part is the feasibility study
- to determine the viability and profitability of
the proposed project.
II. Service Description
• The proposed CPA review center will be the first
established CPA review center in Paranaque City.

• It will offer reviews for accounting and other related

subjects in preparation for the CPA Licensure
Examination

• CPA review center will provide review and learning

materials that are updated and relevant to assess the
reviewees on what they have learned.
 Market Study
The market study was conducted by the
researchers to determine the following;
 first is to determine if there is a market
 if the amount of quantity demand is substantial
enough to introduce the service to the market
 lastly, if the industry is attractive.
 Recommendation

A feasibility study can be recommended to

determine the viability of offering a CPA Review
and Tutorial services of the proposed CPA Review
Center with the researchers as the proponents.
 III.
FEASIBILITY STUDY
 Marketing Aspect
The objectives of the marketing aspect:
• to define the service description of the proposed review
center
• to figure out the number of target market
• to identify the results of the survey conducted
• to classify the attractiveness of the industry
Part of the objective is:
• to study the prices for each existing firms
• to determine the quantity demanded
• to present the computation of the projected sales
 Marketing Aspect
After determining the objectives researchers will
come up:
• to the findings of the study,
• conclusion,
• last is if the feasibility study can be
recommended.
Marketing Strategy (4’Ps)
Service Strategy
• to provide excellent quality of service programs for its
aspiring reviewees in line with its vision and mission
• will provide a schedule for assessments and reviewing
again what have had discussed
Place Strategy
• The location has a great advantage since there
is no competition, the business will located to
the nearby colleges and universities so the
consumer may easily access to it.
Price Strategy
• Will use market penetration pricing to gain
market share by offering the same services at
prices lower than those of the existing and
competing firms.
Promotion Strategy
• to build name recognition and awareness but also to
build deeper relationships with the target customers
whom we believe will help promote the business.
• To reach the target customer group, we will use following
marketing methods such us giving fliers, posting it thru
social media which is more frequently use nowadays to
advertise a business.
B. PROCESS (FLOW CHART)
EQUIPMENT NEEDED
• OFFICE SUPPLIES
• FURNITURES AND FIXTURES
• HAND OUTS/MATERIALS
- we are providing comprehensive and
effective hand outs and quizzers for the reviewees
to enhance their critical thinking skill.
PLANT LOCATION
 PLANT LAYOUT
Space Layout

The total size area of the plant lay-out is 900.90sqm

SQM FOR EACH AREA OF OFFICES AND FACILITIES:
• 4 classrooms with 139.01sqm
• Registrar’s office with 17.32sqm
• A spacious lobby with 136.02sqm
• Information desk with 3.00sqm
• A spacious library with 108.63sqm
• Comfort room for both male and female with
15.85sqm each
• Lastly the building has 6 cars capacity for its
parking space with 11.25sqm.
Classroom

139.01sqm
 Library

136.02
sqm
Registrar’s Office

17.32sqm
Comfort Room both male and female

15.85sqm each
 Lobby and Information Desk

136.02
sqm
Parking Space

11.25sqm
C. FINANCIAL ASPECTS
• it will determine if the proposed business is feasible enough to
start the business
General Assumptions:
Income Statement
• The sales will Increase by 10% per annum.
• The Factory Overhead will include the 40% of utilities, 62%
of lease which is computed by getting the proportion through
square meters, employer’s contribution, 60% of office
supplies, and 60% of depreciation.
• The supplies, utilities, maintenance, and miscellaneous will
also increase by 10% per annum.
• The remaining percentage for utilities, lease, and
depreciation will be included in operating expense.
• The income tax will be based on the 35% of the income
before tax
• The method used in depreciation is sum of the year’s digit
method
Statement of Financial Position
As to investment, 300,000 of cash are invested in
marketable securities and it will increase 10% per annum
at 5% interest rate.
The 40% of the office supplies were unused.
The pre-payment for rent is 2 months.
Total Projected Cost
• Total projected cost covered of 3 months
• Includes equipment, furniture and fixture, and leasehold
improvement.
• Included in the pre-operating expense is the business
requirements needed before the operation of the
business.
• Working capital includes cash revolving fund, inventory-
books, materials and supplies, utilities, professional fees,
salaries and wages, maintenance, and advertising are
based on 3 months computation.
Sources of Financing the Project
The CPA review center is using an equity capital
contribution to finance the project. Each of the partners
have contributed 625,000 thus, the total contribution is
2,500,000.
Table 30. Total Project Cost for 3 Months
Sources of Financing the Project
Table 31. Capital Contribution
Projected Financial Statements
Table 32. FiveYears Projected Statement of Comprehensive Income
Table 33. Five Years Projected Statement of
Changes in Equity
Table 34. Five Years Projected Statement of
Cash Flow
Table 35. Five Years Projected Statement of Financial
Position
Notes to Financial Statements
Financial Statement’s Analysis
Table 36. Five Years Financial Ratios
LIQUIDITY RATIO
SOLVENCY RATIO
 Project Acceptability
Table 37. Net Cash Flow from Operating Activities
Table 38. Net Present Value
Table 39. Internal Rate of Return
Table 40. Payback Period
Table 41. Break- Even Analysis
ORGANIZATIONAL CHART
E. SOCIO-ECONOMIC ASPECT
• Contribution to the potential clients
• Contribution to the Economy
• Contribution to the Government
• Contribution to the Society
THANK YOU 