Feasibility Study-Laundry Services (1)

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2014

FSUU-Accontancy Program

Aparece,Marjorielou B.

Cadorna,Vina O.

Casinillo,Kissey Jen T.

Gumban,Christine Grace A.

Lorete,John Paul Niňo

R.Mosende,Nerissa G.

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COPYRIGHT PROTECTED DOCUMENT

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Father Saturnino Urios University

Accountancy Program

Feasibility Study

“Lovebada Bango Laundry Shop”

Prepared by:

Nerissa G. Mosende

Kissey Jen T. Casinillo

Christine Grace A. Gumban

John Paul Niňo R. Lorete

Marjorielou B. Aparece

Vina O. Cadorna

Adviser:

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FSUU-Accontancy Program | All Rights Reserved. 3 TABLE OF CONTENTS I. Introduction a) Rationale 1 b) Business Description 1 c) Business Name 2 d) Business Location 2 e) Service Description 2

II. Marketing Aspect

a) Area Covered 4 b) Target Market 5 c) Competitors 7 d) Market Need 8 e) Demand Analysis 9 f) Supply Analysis 9

g) Laundry Services Offered 10

h) Prices 11

i) Income Projection 13

j) Advertising and Promotion 14

k) SWOT Analysis 15

III. Technical Aspect

a) Commercial Space for rent 17

b) Space Layout 18

c) Operating Procedure 20

d) Filtration Process 23

e) Operational Equipments 27

f) Laundry Cleaning Products 32

g) Supplies 35

h) Costing 39

IV. Management Aspect

a) Form of Ownership 40

b) Business Culture 43

c) Manpower Requirements 44

d) Organizational Structure 45

e) Job Description and Duties 45

f) Segregation of Duties 46

g) Management Style 47

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V. Financial Aspect

a) Considerations 50

b) Pre-Operating Expenses 51

c) Projected Balance Sheet 52

d) Projected Income Statement 53

e) Projected Statement of Cash Flows 55

f) Statements in Changes in Equity 56

g) Return on Investment 56

h) Payback Period 56

VI. Socio Economic Aspect

a) Contribution to the Economy 57

b) Contribution to the Government 57

c) Contribution to the Society 57

d) Environmental Impact 58

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CHAPTER 1 INTRODUCTION Rationale

The fast change of trend from individualized laundry to commercial laundry services coincides with rapid technological change as well as the fast, changing and modern lifestyle of Filipinos.

Laundry business is an easy and convenient business to start. It is not capital or management intensive. You can start this business right from home and grow from there. It is a very lucrative business, as not everyone that puts on clothes has the time to do the laundry.Based on the survey conducted the reasons why they go to the laundry shops instead of doing it to their own are because of tight schedule especially those students who have a lot of extracurricular activities in school, others says they don’t like washing their clothes because it is just a waste of time (laziness), and some boarding houses didn’t allowed washing clothes in consideration to the consumption of water.

This is the reason why there is chance of making a lot of money because this people will definitely seek your services.

Business Description

Butuan City as a highly urbanized city in the Philippines emerged too many businesses nowadays. It can be seen that numerous schools and establishment are spotted around the area urging to look for convenience due to their busy time. And this gives a positive outlook for some businessmen who were just started in the industry to put their investment in certain businesses particularly the Laundry business in which the field is not that much penetrated.

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Business Name

The right name can make your company the talk of the town especially when it is unique and probably would catch their attention. Therefore, the proposed name of our business is “Love

Vada Bango Laundry Shop” originated from the word “labada bango

with love” that means we will wash clothes with love, passion and fragrance.

Fig. 1 Business Logo

Business Location

The proposed business location is located at Lopez Jaena Extension, Barangay Tandang Sora, Butuan City.

This location composes of schools like FSUU, SJIT and BCC; establishments; apartments and boarding houses.

Service Description

The Business concept of LOVEBADA BANGO is typically homogeneous to those other existing Laundry shops in the city. But certain things will make it stand and that includes its quality services, professionalism of its personnel towards its customers.

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Quality Services - The quality services really matters in

LOVEBADA BANGO Laundry. It is planned to provide services such as washing, pressing, ironing and folding customer’s clothes and garments. It will be using quality equipments and machineries that could greatly help and make the business exist. It shall offer affordable cleaning too, making sure that the output will reach its quality standard

Professionalism towards customers - Personnel of the shop will

surely build professional customer relationship. Unlike the other personnel/workers that may just think business is easy as doing what is assigned to them and this normally getting payments from customers after doing/giving what the latter wants. More than that, it would be better to set your customers as part of the top priority. In addition, the team will take care of each customer item with great respect since personal things are engaged in the business.

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Chapter II MARKETING ASPECT

The marketing aspect will serve as the basis of the financial section through the projected demand. This includes the area covered, target market, proposed location, competitors, the demand and supply, demand and supply gap analysis, marketing program and SWOT analysis.

Area Covered

This is to identify a point or an area of study. Geographic target is in Butuan City primarily located at this Barangays Sikatuna, Humabon and Tandang Sora as a primary market. This is 3.5% of the overall barangays total of 86 that composes the city. This location composes of schools like FSUU, SJIT and BCC; establishments; apartments and boarding houses. Out from these components we will determine the population of those living in apartments and boarding houses where our target market is situated.

Fig. 2 Area covered Brgy. Humabon

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Fig. 4 Area covered Brgy. Tandang Sora

Area Covered No. Apartments and Boarding houses Total Population (actual data) Brgy. Humabon 32 523 Brgy. Sikatuna 23 670 Brgy. Tandang Sora 72 1,706 Total 127 2,899

Fig. 5 Actual Population Notes:

1. The number of apartments and boarding houses were gathered from the list of registered business establishments as of June 2014 from City Hall Butuan City.

2. The Population is based from actual data which is gathered by the researchers while doing the survey and interview with the Caretakers/Owners.

Target Market

Our target market will determine from those living in apartments and boarding houses within the mentioned Barangays such as:

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1. Young professionals 2. Students

3. Family

This group of market will be described their need according to their lifestyle considering a number of potential influences on buying behavior including the attitudes, expectations and activities of consumers.

In order to know the population demand for the proposed laundry business for that area in Lopez Jaena Extension, we used the “slovins” formula in determining the number of respondents for the survey questionnaires. We use the actual number of residents in apartments and boarding houses total 2,899(fig.5) and the margin of error would be 10%. Margin of error denotes the allowed probability of committing an error in selecting a small representative of the population.

N = n / (1 + ne^2) Therefore: N = Number of samples N = 2899 n = Total population (1+2899*.10*.10) e = Margin of error N = 96.67 round of to 97

Fig. 6 Questionnaire Distributions

Notes:

1. The number of population is based on Actual.

2. The ratio for distribution of respondents is based on the Specific population in a barangay over total target population and is multiplied to number of respondents.

Barangay Number of population Distribution Ratio total Respondents Distribution of respondents

brgy. Humabon 523 18.0% 97 17

Brgy. Sikatuna 670 23.1% 97 22

Brgy. Tandang Sora 1706 58.8% 97 57

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Fig. 7 Respondents Classification

Based on the survey, the graph shows that 78% are students, 21 % from working and others 1% coming from family section.

Competitors

We have gathered data of the list of the Laundry Shops registered as of June 2014 in Butuan City. Below are the lists:

1. ALL SEASON STEAM LAUNDRY – R. CALO ST. 5, Diego Silang 2. LIM’S HOUSE OF LINEN – 12, Bancasi

3. WASH ‘N DRI LAUNDRY SHOP – Dagohoy

4. KITZ N’ CHARLS LAUNDRY – MONTILLA BLVD. DOOR 1-CINDERELLA ARCADE, Ong Yiu

5. VIA’S LAUNDRY SHOP – 084 MONTILLA BLVD., New Society Village

6. LAUNDRY KO - #162 J.C. AQUINO AVE., Bayanihan 7. ECS LAUNDRY SHOPPE – 2, Libertad

8. KRISSIE’S SO CLEAN, SO BRIGHT CLOTH CARE – J.C. AQUINO AVE., Lapu Lapu

9. R & D BUBBLE WASH AND LAUNDRY – PRINCESS HOME ARCADE, Villa Kananga

10. NRL LAUNDRY TIM – 327 CAPITOL DRIVE, Dagohoy

11. KWIK KLEEN LAUNDRY SHOP – ZONE – 5 R CALO ST, Diego Silang

Respondents Classifications

students working other 78% 21% 1%

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Fig. 8 Competitors location Notes:

 Among those shops listed above, highlighted is the nearest

competitor which is 500 meters and 568.48 meters away from the area where the target market resides.

 The following competitors are not within our covered area from the mentioned barangays.

Market Need

The survey says that the needs of the market are of the following factors enumerated below. Therefore this would be our basis to better achieve customer satisfaction and they will be able to continue availing the service.

 Quality of cleanliness  Price

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Fig. 9. Market Need

Fig. 10. Demand Analysis

Fig. 11. Supply Analysis

Demand Supply Demand and Supply Gap

7132 750 6382

Fig.12. Demand and Supply Gap Analysis 59% 29% 12%

MARKET NEED

Quality of cleanliness Price Timeliness

Area covered Total Actual Population (a)

Percentage of those who are willing

(b)

Total Population who are willing to avail

(axb)

Estimated # of kls minimum per week

(d) projected demand (in kilo) Brgy. Humabon 523 82% 429 3 1287 Brgy. Sikatuna 670 82% 549 3 1648

Brgy. Tandang Sora 1706 82% 1399 3 4197

Total 2899 2377 7132 Services Working Hours per day Estimated Cycle Time per load (hour) No. of loads allowed per day (a) Estimated Capacity Per Load (b)X 4 machines Load Capacity per day (axb=c) Working days (d) Loading Capacity Per week (cxd=e)Kilo Machine Wash 8 hours 2 hours 4 30 kg 120 kg 6 days 720 Hand Wash 3 hours 1 5 kg 5 kg 6 days 30

Total No. of

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Note:

1. Demand Analysis (Fig.10), projected demand is the estimated kilo of clothes per week that needs to be catered by our services.

2. Supply analysis (Fig.11), Loading Capacity per week is the normal operating capacity that the Laundry shop can cater. 3. As seen in Fig.12, there will be a gap of 6382 (7132-750)

kilos that will never be catered. Hence which is a good thing, since the demand for our services is higher than what we can give. Therefore the threats of competitors to rise up in the same area (sharing of market) won’t materially affect our sales projection.

Laundry Services Offered

The following are the list of the services to be offered based on the needs of the market:

1. Wash-Dry-Press 2. Wash-Dry-Fold 3. Hand washing

Fig. 13 Services to avail 19% 74% 7%

Services to Avail

Wash-dry-press wash-dry-fold Handwashing

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Fig. 14 Prices

Fig. 15 Prices

How much the market is willing to spend for laundry service?

Fig. 16 Wash-Dry-Fold Once a week 78% Twice a week 19% Thrice a week 3%

How often do you do laundry?

Special Items (Per kilo) Wash Dry Fold

(Per Kilo)

Wash Dry Press (Per Kilo) Handwashing (Per kilo) P 23.00 P 65.00 Jeans/Maong - P 30 Bed Sheet/Towel - P 45 Comforter - P 65 Wash-Dry-fold P 60.00 Without hanger P 65 Minimum of 3 kg Wash-Dry-Press P 65.00 83% 17%

Wash-Dry-Fold

P23/kg P25/kg

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Notes:

 On the survey provided, 83% will go for cost of 23.00/min.3kls and only 17% will go for cost of 25.00/min.3kls.

Fig. 17 Wash-Dry-Press Note

 On the survey provided, 72% will go for cost of 65.00/min.3kls and only 28% for the 70.00/min.3kls. This is in consideration as a student price.

Yes 38% No

62%

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Fig. 18

Fig. 19

Based on this survey 38% of the market says yes that they bring their clothes to the laundry shop, while the remaining 62% says no. Therefore, out of the 38% that says yes, 8% of them only bring 2 kilos and below, 21% brings 3 kilos, 34% brings 4 kilos and the remaining 37% brings 5 kilos and above.

Income Projection

Estimated Kg. of

Laundry per Week Rate per Kg.

Total Sales per Week No. of Weeks in a Year Total Sales in Year 1 Wash-Dry-Fold 300 ₱23.00 6,900.00 52 ₱358,800.00

Wash-Dry-Press (with hanger) 72 70 5,040.00 52 262,080.00 Wash-Dry-Press (w/o hanger) 73 65 4,745.00 52 246,740.00 Hand Washing (Wash-Dry-Fold) 25 60 1,500.00 52 78,000.00 Hand Washing (Wash-Dry-Press) 25 65 1,625.00 52 84,500.00

Special Items

Jeans/Maong 85 30 2,550.00 52 132,600.00

Bed Sheet/Towel 85 45 3,825.00 52 198,900.00

Comforter 85 65 5,525.00 52 287,300.00

TOTAL REVENUE 750 ₱1,648,920.00

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Advertising and Promotion

This refers to raising customer awareness of the services and creating services loyalty.

1. Leaflets and flyers – will be distributed upon the opening of the shop so that the market will be able to be informed that it is already available.

The leaflets and flyers will be personally done by the owner of the shop which has a budgeted amount of P 3,000.00

Leaflets will include the following information: - Services offered

- Price list

- Company address and contact number - Business hours

- Business slogan

2. Tarpaulin – to be placed in front of the shop. The cost would be P 2,500.00. It will include the following information:

- Business name, address and contact number - Business logo

- Business hours - Business slogan

3. Membership offering that will give customer discounts - to

maintain the loyalty of the customer we will offer membership and there will be corresponding points to reach so they can avail the discount.

4. Bring a friend - a gift item will be given.

5. Pick Up and drop service – to increase more of the willingness of the customer to avail of the laundry service, we will offer pick up and drop service as it shows also in the survey that 45% would like to have this kind of extra service for the convenience of the customer.

To avail the discount

Laundry Requirement 30 kls/mo. 40 kls/mo. 50kls/mo

Discount 3% 4% 5%

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Fig. 20 SWOT ANALYSIS

I. Strengths

 Using machines with quality and brand

 High profitability because it is more accessible to market

 Quality output and faster service

 The location is on the main city nearest to the boarding houses, apartments and schools

 Location is just a walking distance

 Prices are relative, competitive and accords to what the customers want

 Does not need a large amount of capital

 Promotion strategies – social networking sites is very accessible as well

 Accessibility of the location

II. Weaknesses

 Lack of experience as this will be the first time to conquer the market in the said location

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maintenance will be quite expensive as well III. Opportunities

 Continuous development of the city with having new establishments for residential (apartments and boarding houses)

 Students, working professionals having lack of time in doing their own laundry

 Only two competitors nearest which is 500 meters and 568.48 meters away from location

IV. Threats

 Price variations

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Chapter III TECHNICAL ASPECT

This chapter provides information that includes the structures and the floor plan, operating procedures/processes that are essential to the overall operation of the business, proposed equipment, machineries and supplies together with their descriptions and specifications.

Commercial Space for Rent

The space will undergo some sort of renovation just to maximize the space intended for the business since the space is not that large enough to settle all the equipments or other furniture. The rent will be 2 months deposit and one month advance total 30,000.00 on first month and cost 10,000.00 pesos on a monthly basis onward provided by a lease contract for minimum of 1 year and renewable. Below shows the innovation cost for the space rented.

Description of Jobs Estimated Cost Fabrication and Installation of the

following:

Cabinets 5,500.00

Counter tables 6,100.00

Divisions 5,200.00

Ironing Board 4,000.00 Total Cost for Furnitures and

Fixtures 20,800.00

Leasehold Improvements Electrical works for the lights and

connections to the machines including the materials and labor

3,000.00 Painting including materials and

labor 3,500.00

Plumbing works for the installation of water connections to the machines and drainage system (septic tank)

12,000.00

TOTAL 18,500.00

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Space Lay out

Fig. 22

The floor plan was designed intended to facilitate the work flow and show how the space looks like.

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Image of the Actual Space

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Operating Procedure

Fig 24. Operating Procedure

The above chart shows the laundry process. Each process is explained as below:

1. Tagging - the clothes are firstly tagged with a specific number, mentioned in the invoice given to customers. This procedure is used for identification of clothes once ready for collection for customers.

2. Sorting - After tagging the clothes are arranged in different sets. Some people will sort by color. Other sort by fabric type.

3. Pre-treatment of clothes – soaking in hot water.

4. Washing - The clothes are washed in washing machine using detergent washing powder and or bleach on white.

5. Drying - The clothes washed are transferred to dryers. (Note: one of the machine are automatic dry)

6. Packing - Once pressed, the clothes are properly hanged and covered in the plastic wrap and then tagged so that it can be easily identified.

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Receiving and Tagging

1. Note the time that the items received. 2. Check the item against the laundry list.

- Make sure the item received matched the item listed on the laundry list.

3. Tag each laundry items.

4. Check for damage and lost and found items.

5. Fill out in the separate logbook for lost and found items. - Record the time, date, name, description of the item

6. Place the item in a plastic bag and surrender it to the supervisor.

7. Record the laundry items according to company procedures. - Record the date, name of customer, time received, name of

the attendant, signature and remarks.

8. Sort each item according to weight and color (heavy, white, colored and damaged)

- Put damaged item to separate basket 9. Prioritize express items.

Wash Dry Fold per 10 kilo wash load

 Thin Garments including clothing, bed sheets, curtains, and towels

1. 30 minutes washing time

2. 4 scoops of detergent soap and 1 cup of fabric softener

3. 25 to 30 minutes drying time 4. Quality checking of clothes

5. Approximately 30 mins for folding

 Thick Garments such as blankets and comforters

1. 30 minutes washing time

2. 4 scoops of detergent soap and 1 cup of fabric softener

3. 30 minutes drying time

4. Quality checking of clothes

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1. Inspection of clothes for pressing if the fabric allows pressing and specific temperature requirements 2. Segregation of clothes according to size and

temperature requirement for pressing.

3. Pressing of clothes requiring high temperature and folding.

4. Pressing of clothes requiring medium to low heat temperature and folding.

5. Segregation of clothes according to tag, identifications and tagging for pick up

 Hand Washing Process

1. Clothes are inspected for washing requirement symbol. 2. Clothes are initially soaked and rinse in lukewarm

water to loosen up the fabric for easy cleaning.

3. Clothes are soaked in lukewarm water with detergent for about 8 minutes

4. Clothes are hand washed with bar soap and bleach (if needed)

5. Clothes are soaked and rinse in cold water for rinsing twice

6. On the third rinsing procedure, rinsing procedure, clothes would be soaked and rinse in cold water with fabric conditioner

7. Clothes are to be tumble dried in minimum time according to fabric requirement

8. Clothes are segregated and folded according to tag identification

9. Clothes are bagged for pick up

Removing Stain

1. Prepare the necessary materials.

(gloves,cotton cloth, stain remover, laundry basket) 2. Lay the cotton cloth on your work area - cotton cloth

absorbs the stain while it is being removed. 3. Turn the garments to its wrong side.

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5. Wear protective equipment - Gloves protect your hands from harsh effect of chemicals.

6. Apply stain remover and gently scrub the area. Apply more stain remover as necessary for stubborn stains; soak the garments for 5-15 mins.

7. Check if the stain has been removed.

8. Place the garment in a basket for laundry.

Notes:

1. First come first serve basis for laundry service. 2. If in case customer will request for quick delivery

additional charge of P 5.00.

Filtration Process – Environmental Impact

Step 1:

The higher hole was inserted on the side of the washing waste pipe, and the lower hole is for the pipe to the canal.

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Step 2:

Vermin proof lid on the grey water filter box. It comes with a secure lid, so that will also deter vermin.

Step 3:

Larger filter stones layer the base of the black box.

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Step 4:

Smaller filter stones were laid on top of the larger stone.

Step 5:

A couple of layers of shade cloth to hold the sand.

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Step 6:

A layer of clean sand.

Step 7:

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Operational Equipments

Electrolux EWT904 - 9kg Top Load Washing Machine with T-Drive Washing Technology Price: 22,395.00

Quantity: 2

Life Expectancy: 5 years Body Type: Top-load washer Total Capacity Washing Capacity: 9kg

Number of Wash Cycles: 11 Spin Speed: 850 rpm

Dimensions: 67 x 107 x 68 cm

Drum and Interior Finish: Stainless steel

Eco-friendly

Certification(s) 3 ticks(WELS)

Eco-friendly Feature(s): Load Selector - Low - Middle - High, Deep / Eco Rinse

Material(s): Zinc-coated Body

Screen Technology LED light Indicator and time display, Electronic Control Wash Cycle Modes: Regular Wash, Fast Wash, Colour, Delicates, Heavy Soil, Woollens

Control Panel Programmes in single knob control Timers: Soak and delay end function

Dispensers: Detergent, Bleach dispenser drawer Center Fabric Softener Holder Supplier: Electrolux located at the Robinsons Appliances

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Health Features: T-DRIVE washing technology: 35% cleaner washing performance: Anti-residue system Water Efficiency: 3 ticks(WELS) Water consumption: 8.80 L /kg Regular wash

Noise Reduction: Stabilised Belt-driven System

Indicators: LED Remaining Time Display

Languages Supported (OSD/Menu) English

Quick Menu Options Soaking Function- 45,30,15 min

Rinse Function - Extra, Deep,Eco,Fast

Power Supply: 220-240 V/50 Hz

Warranty: 2 years warranty WM-2011/007953

7kg Sensor Dry Dryer with Iron Aid - EDS7051

Price: 18,995.00 Quantity: 2

Life Expectancy: 5 years Body Type: Front-load Dryer Total Capacity Drying

Capacity: 7kg

Number of Wash Cycles: 6 Spin Speed: No

Stackable: Yes

Dimensions: 600 x 845 x 620 Drum and Interior Finish: Stainless Steel

Energy Consumption: Drying Per Cycle: 4.46 kWh

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Certification(s):ENERGY EFFICIENCY (MELS) - 1 ticks Eco-friendly Feature(s):

Auto Sensing, Iron-aid function, Reverse Tumbling Technology

Material(s): Galvanised Zinc-coated Body

Screen Technology: LCD light Indicator and Electronic Control Wash Cycle Modes:

Normal/Delicate/Airing/90mi n/60min/30min

Height with Lid

Open:Electronic Control Panel

Timers: 3/6/9 hours Safety Features : Safety Cut-off, Door lock Indicators: Drying / Airing / End Languages Supported (OSD/Menu): English Power Supply: 220-240 V/50 Hz Packaging Weight: 32kg Included Accessories: Venting kit

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4 CYLINDER 5 SPEED SUZUKI VAN TYPE WITH AIRCON - Used

Php 95,000.00

Life Expectancy: 5 years

Water Tank

Storage in case there will be water disruption.

Php 10,000.00

2in1,blower and suction- 1/2hp, 200watts,20" x 20"

Exhaust Fan

Php 6,000.00

1 pc. Of 120kls. Weighing Scale

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1 pc. Of Calculator

Php 200.00

Water Hose 50ft

Php 1,500.00

2 pcs. Of Steam Flat Iron

Php 1,095.00 each

1 set of Dataworx Budget Computer Package (Black)

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1 pc. of Plastic Container (for filtration process)

Php 739.75

1 sq.meter of Black Shade Cloth

Php 100.00

Laundry Cleaning Products

We choose to have a one supplier for our supplies to be use for the laundry process.

Name of the Supplier PowerClean Chemicals

Branch KM 5 Buhangin Highway Corner

Pag-asa St. Davao City

Access Order Online

Website http://www.powerclean.com.ph/

Alternative Supplier Villa Fidelina

Address Ochoa Ave.cor.Lauraville

Subd.,Brgy.Limaha, Butuan City

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Supreme Power Detergent

Description:

High Density Power Detergent with supreme performance, 100% biodegradable active, anti-bacterial and optical

brightener, no odor soaking, and no chalk. Ideal for

Handwash and machine wash. 12 Sacks – 25 kg each

Life Expectancy : 1 year

Price: P 19,500.00 @ 1,625 per sack

Fabric Softener

Description:

A concentrated liquid fabric softener that soften and leaves a fresh scent on fabrics,

soluble in cold and hot water. With various scents suited to different personalities. 40 Gallons

Life Expectancy : 1 year Price : P 7,600.00 @ 190 per gallon

Liquid Bleach

Description:

Mild, safe chlorine bleach for all purpose cleaning and

disinfection. Contains sodium hypochlorite and releases 5-7 % available chlorine that will react with your fabric stain. Effective at low temperature, fast action and removes

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stubborn stain. 40 Gallons

Paint, Oil and Grease Remover

Description:

Is a fast acting liquid spot cleaner especially formulated to remove paint, oil and grease on fabric and other surfaces without affecting color and quality. This can also remove unwanted bubble gum on hard surfaces.

10 gallons

Fabric Freshener

Description:

Is a water based scent especially formulated to

eliminate undesirable odors and enhance the freshness of newly washed clothes. It comes in pleasant smelling dawny, comfort fashion and lavender scent

40 Gallons

Price : P 10,000.00 @ 250 per gallon

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Liquid Detergent

Description:

A concentrated liquid solution which has mild surfactant

system effective for color fast

Supplies

2 pairs of Rubber Gloves

Php 199.00 @ 99.50 each

10 pcs. Of Laundry Basket Life Expectancy:1 year Php 2,000.00 @ 200 each

3 pcs. Of Dipper

Life Expectancy:1 year Php 90.00 @ 30.00 each

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144 pcs x 10. Plastic Hangers Life Expectancy: 1 yr

Php 4,000.00 @ 400.00 for 144

Face Mask Ear Loop (50 pcs/box)

Disposable item Php 100.00

Big Plastic Basin - 5 Life Expectancy: 1 yr

Php 2,250.00 @ 450.00 each

50 rolls of Tagging Paper Roll

Life Expectancy: 1 year Php 9,000.00 @ 180.00 each

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Ball Pens

Life Expectancy:1 year Php 60.00 @ 5.00 each

40 pcs. Of Scotch Tape Life Expectancy: 1 year Php 500.00 @12.50each

Record Book- 300 Pages Life Expectancy: 1 year Php 100.00

10 pcs. For 500 sheets of Order Slip

Life Expectancy: 1 year Php 1,687.50 @337.50 each

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10 pcs. For 500 sheets of Delivery Slip

Life Expectancy: 1 year Php 2,600.00

Plastics Units Sando

Bags Units 16x24 200 pcs. 310.00 Large 100 pcs. 140.00 20x30 100 pcs. 165.00 Extra Large 100 pcs. 185.00 20x40 100 pcs. 285.00 Jumbo 100 pcs. 330.00 24x36 100 pcs. 390.00 24x60 100 pcs. 620.00 1 year 1,770*2 3,540.00 655*2 1,310.00

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Cost of Services

( WDF 8kg,WDP 2kg)*a TOTAL COST Wash-dry-fold Wash-dry-press

8kg 2kg Php 16.25 Php 13.00 Php 3.25 Php 11.88 Php 9.50 Php 2.38 Php 15.63 Php 12.50 Php 3.13 Php 5.13 Php 4.10 Php 1.03 Php 4.86 Php 2.54 Php 2.03 Php 0.51 Php 48.88 Php 39.10 Php 9.78 DM Cost per Unit*f Php 4.89 Php 4.89

Php 76.57 Php 76.57

Php 89.33 Php 89.33 Php 165.90 Php 76.57 Php 89.33 DL Cost per Unit*i Php 9.57 Php 11.17

Rate Php 7.9734 Php 2.39 Php 1.91 Php 0.48 Php 7.9734 Php 2.39 Php 1.91 Php 0.48 Php 7.9734 Php 17.78 Php 14.22 Php 3.56 Php 7.9734 Php 17.78 Php 14.22 Php 3.56 Php 7.9734 Php 2.51 Php 2.51 Php 40.35 Php 32.28 Php 10.58 Overhead Cost per unit Php 4.03 Php 1.32

Php 255.12 Php 147.95 Php 109.68 Php 18.49 Php 54.84 Direct Material

Detergent (250grams)*b

FOR WASHING MACHINE PROCESS COSTING PER 10 kg Process

Direct Labor

Wash-dry-fold DL allocation *h Wash-dry-press DL allocation*h

Total Direct Labor Cost Fabric Softener (1 cup)*c

Fabric Freshener (1 cup)*d Liquid Bleach( 1 cup)*e Water (522L)*g

Total Direct Material Cost

Overhead-Electricity Consumption Machine Washing(30min)

Tumble Dryer(30 min)

Machine 1 (.600kwh)*j Machine 2 (.600kwh)*j

Total Cost per Unit

Dryer1 (4.46kwh)*k Dryer2 (4.46kwh)*k

Total Overhead Cost Pressing (15 min)

Flat Iron (1.258kwh)*l

Total Cost of Process

Total Cost 8.13 5.94 7.81 2.56 4.86 1.90 26.34 5.27 252.24 total Direct Labor 252.24

Direct Labor unit cost 50.45

7.9734 8.89 8.89 1.78 287.47 Total Cost per unit 57.49

COSTING

Tumble Dryer(15 min)

Dryer1 (4.46kwh)*t Total Overhead

Total Handwashing Cost

Cost per unit Water (391.5L)*q

Total Direct Material

DM Cost per Unit*r

Direct Labor Handwash-dry-fold *s Overhead HANDWASHING Direct Material Detergent (125grams)*m Fabric Softener (1/2cup)*n Fabric Freshener (1/2 cup)*o Liquid Bleach( 1/2cup)*p

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CHAPTER IV MANAGEMENT ASPECT

This chapter provides information about the management aspect of the business. Basically, it shows the form of ownership which the business have. This includes how business will be managed, the control and supervision matters and even the start-up cost of the business. It will also provide you with information about the basic requirements and procedures in registering the business and the government agencies that the business is related to.

The management aspect will determine the successful realization of the business. That’s why the study of the officers, key personnel and manpower requirements will be very important matter in this chapter. Business culture which includes the operating schedule and the day to day monitoring will also be part of this chapter.

Form of Ownership

I. The business will be sole proprietorship.

- Manage - Control - Supervise - Start Up cost

A sole proprietorship is chosen since it is one of the least expensive business structures to begin. Only one person owns a sole proprietorship business, the legal requirements involve simply registering a business name and obtaining any relevant licenses or permits that relate to the specific type of business.

Many sole proprietorship businesses have very low start-up costs as compared with other types of business structures. The start-up investment typically includes the basic costs for equipment, marketing and office utilities. However, the amount of the start-up costs may vary, depending on the specific type of business.

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II. Registration

Essentially, a sole proprietor business legally comes into existence when the business owner registers the business name and obtains any relevant business licenses.

Government agencies for registration

 Department of Trade and Industry

 Local Government Units where your business is located:

a. Barangay

b. Mayor’s Office

 Bureau of Internal Revenue

 Legally Required Registration of Employee Benefits Employers are legally required to provide certain benefits for employees. Employee benefits play an important role in the lives of employees as well as their families. For that reason, the benefits you offer can be a deciding factor for a potential employee’s decision to work at your business.

Employee’s registration to the following: a. SSS

b. PhilHealth

c. Pag-ibig – HDMF

Basic requirements and procedure in registering a Sole Proprietor Business

1. Register a business name at DTI

1) Come up with three business names

2) Search in the DTI’s website if there is an existing name similar to yours

3) If your business name is available, fill up business name (BN) Application Form

4) Submit your completed BN application form to DTI’s offices/branch

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5) Wait for your DTI Certificate of Registration

2. Registration with Barangay

1) Go to the barangay where your business is located to secure and fill-up application form

2) Submit your completed application form together with the following:

 Certificate of Business Registration from DTI

 Two valid IDs

 Proof of Address such as Contract of Lease

3) Claim Barangay Certificate of Business Registration

3. Register your business in the Mayor’s Office 1) Go to the municipal office where your

business is located to secure and fill-up application form

2) Submit your completed application form together with the following

 Barangay Clearance Certificate  Two valid ID

4. Register in the Bureau of Internal Revenue (BIR) 1) Go to Regional District Office where your

business is located

2) Fill-up the BIR Form 1901- Application for Registration (for Sole Proprietor)

3) Submit completed registration form together with the following

 Barangay Clearance Certificate  Mayor’s Business Permit

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 Valid ID

4) Pay the registration form (BIR form 0605) 5) Register your book of accounts and

receipts/invoices

6) Claim your Certificate of Registration (BIR Form 2303)

Business Permit and Licenses _Registration Amount of

Registration with DTI 215.00

Registration with Barangay 100.00 Business Permit in Mayor's Office 5,027.00

Registration in BIR 500.00

Total 5,842.00

Business Culture

I. Operating hours from 9:00 am to 6:00 pm – Mondays to Saturdays

Break time: 12:00 to 1:00 PM II. Day to day monitoring

The Inspector will monitor the employees’ attitude and performances, the laundry process, the consistency and on-going coaching and giving instructions to them.

- Monitoring of sales - Inventory

- Delivery and Pick-up

The pick-up and delivery will start at 9:00 am from Monday to Saturday. Our customers will contact us, since we are giving leaflets to them and posting tarpaulins in the area. The customer and the counter clerk will set-up the date of pick-up of laundry through telephone or cellphone, prior to the date of pick-up in order to manage the route in one way we can reduce the cost of gasoline. However, we will charge ₱5.00 for every pick-up and delivery.

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The customer’s account will be the basis to track their location during the pick-up and delivery service. It contains the customer’s name, address, contact number, number of returned garments with the payments and other information using the Microsoft Excel as our system. It is necessary to have a better customer communication such as, scheduling or canceling of bookings, automatic SMS, information about their account balances without invoice tickets during delivery and optimized customer search.

Manpower requirements

I. Physical Requirements:

- Age must be 18-40 years old

- Workers without bending, crouching or walking restrictions. - no skin allergies

II. Skills, Interests and Qualities

- Must be graduate of Housekeeping NC II

- practical skills to operate and adjust machinery - good attention to detail

- willingness to do repetitive work

- the ability to work methodically and follow instructions - willingness to work flexibly

- good timekeeping skills

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Organizational Structure

Job Description & Duties

I. Machine washers

Weigh laundry and place it in huge washing machines. Machine washers control the machine settings for each kind of material. This includes setting the proper temperature, washing speed and water and suds level and adding the right amount of bleaches and rinses. After the laundry is washed and rinsed,

II. Counter clerk

Received laundries from customers, give back clean laundry, scheduling the date of pick-up and delivery with the customers, and billing.

III. Bookkeeper

Analyzing and recording the transaction and presenting the reports on time.

III. Markers or sorters tag

Mark the laundries so that they can be returned to the appropriate customer. They usually remove loose buttons and mark items that need to be mended.

Manager

Owner and Bookkeeper

Route worker

pick up,deliver,collect

Inspector/Supervisor

Counter Clerk

Machine

washers (2)

Sorter tags and washer

Extractor

Operator(2)

extractor operator, Finishes clothes (fold and press ,iron)

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IV. Extractor operators

Place it in extractors, which spin most of the water out of it. The laundry then goes to tumbler operators who put it in drying machines that tumble it dry. Some items, such as blankets and rugs, may be hung in heated rooms to dry.

V. Inspector

Check the finished laundry. If it needs rewashing or repressing, he sends it back to the proper department. He sends some pieces to menders, who do repairs by hand or machine. Assemblers collect all the items belonging to each customer. Finally, baggers or bundle wrappers place the laundry in bags or bundles and attach invoices, which indicate how much money the customer owes.

VI. Finishers

Fold and press the clean, dry laundry. When requested, they press. They also may just fold and stack. Other finishers work on shirts, ruffled curtains, blankets, or other items that require special pressing and finishing. To get professional results, they use forms designed for certain parts of clothing, such as shirt sleeves, shirt collars, or the bodies of skirts. They also use hand irons to finish certain items that cannot be done on the forms. The finished items are then folded or placed on hangers.

VII. Route workers

Pick up laundries at customers' homes. Market new customers along their routes. They also deliver clean laundry, giving invoices and collect payments.

Segregation of Duties

I. Single Duty

• Route Worker • Bookkeeper-Owner

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• Counter Clerk and the Inspector

• Markers or sorters tag and Machine washers (could be same person)

• Extractor operator and the Finisher(could be same person)

Management Style

I. Hiring Process

The applicants are required to submit their resume on the position that they are interested to apply for. The management will immediately evaluate and sort those applicants. And whoever passed in the next stage will be informed by means of a message on mobile phones. Each of them will undergo a brief interview to personally determine if they are fit physically and mentally to the position they were applying for and not only that but also to evaluate if they really have the skill and ability to stay at the business. And those who successfully overcome the process shall submit their requirements for legal purpose employment. II. Safe Working Environment

Safe working environment keeps the employees free from any hazards and it complies with the law providing safeties especially to the business operated. There are safety precautions that should be apply, employees are segregated based on their assigned jobs. They are required to wear gloves and mask during the laundry process to avoid from skin irritations. They are allowed to wear comfortable dress attire so that it would not be hard for them to move freely. Personal hygiene is appropriate to avoid disease or any illness, especially for chemicals that contains strong solution.

There is specific baggage area for the employees where they can place their bags or things to it. Their things will be check by the assigned personnel or the owner before and after working hours to avoid thief or any misappropriation of assets.

III. Training

Training is essential for the success of a business. Laundry business requires training for its employees, especially it is

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in need of due care, as clothes one the basic needs of every individual. Before being hired, employees will undergo some sort of trainings for laundry process to evaluate if they have the capabilities required for the position, and to ensure that they will know how to properly do their jobs to give the customer the satisfactions they are looking for. They will be evaluated as necessary to test their working knowledge and improvements.

The PowerClean Chemicals Institute (PCLi) is our choice to be the supplier of our laundry chemicals and they also offer laundry seminar not only in Luzon but also to other regions in the Philippines. We chose them because the lectures are based from actual experience of running a laundry shop. They have wide coverage of topics which covers the Business Management such as Financial Aspect, Taxation, Marketing, Manpower, Machine and the like. They provide continuous assistance, demo of laundry chemicals and advice of laundry operations and management even after the seminar. The speakers are experts in Laundry Business in which they already trained more than 1,300 Laundry owners. Affordable price of ₱1,500 each person for early registrants of laundry shop session. They also continuously improve their training facility with free wifi access.

The owner should understand his choice of employees and time invested to train them results in a direct reflection in his marketing efforts and money spent on those efforts. All of the owner’s best intentions to provide a clean, well equipped, multi-service, and attractive store to his customers will be wasted if there are any employees who do not provide to his customers the level of service, clean appearance, and customer friendly attitude they expect and his deserve for his investment.

At all times, the owner should remind his employees that their top priority is their customer’s interests. From welcoming the customers to the shop, to keeping the machines, and floors clean, keeping bathrooms clean, and properly supplied, taking in Wash-Dry-and Fold and Pressing, peacefully resolving customer issues and complaints, and having that all important good attitude. Monitor also the employees closely and fix any employee problems immediately.

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Motivating & Rewarding Employees

1. Recognize and appreciate about the good things employees

do. They will do less negative and will strive to do more of the positive things the owner is recognizing. It is far easier to lead people to improved performances by thanking them when they do it right than giving them grief when they do it wrong.

2. Take a moment to celebrate like having a party. . It is too easy to get so caught up in the daily struggle that you never stop to recognize the good work you and your attendants do.

3. Praise and recognize the star performers. Some of your recognition budget should certainly go toward spotlighting role model performances and role model employees. This makes them feel good, encouraging them to stay on board and keep trying hard. And it gives everyone a bit of inspiration and a clearer idea of what you want employees to shoot for.

4. Recognize good effort, not just results. When employees have had a tough week, throw a mini-party for them. Bring in some pizza, a cheesecake or whatever inspires the owner and share it with the team. Or try writing a personal thank-you card for each attendant – perhaps picking out a different design for each and having some fun recognizing individuals in your selection.

Personnel No. Min.Wage/ Working Monthly Total

Day Days Gross Pay Deductions Net Monthly Pay

ER EE ER EE ER EE Inspector/Supervisor 1 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 6,474.34 Route Worker 1 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 6,474.34 Exctractor Operator 2 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 12,948.68 Machine Washers 2 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 12,948.68 TOTAL 27,872.00 2,102.80 1,017.20 400.00 400.00 557.44 557.44 1,974.64 38,846.04

TOTAL PER ANNUM 334,464.00 25,233.60 12,206.40 4,800.00 4,800.00 6,689.28 6,689.28 23,695.68 466,152.48

Employer's Contribution 36,722.88 Employee's Contribution 23,695.68 Annual Withholding tax

-SSS Premium PhilHealth Premium PAG-IBIG Premium PAYROLL SCHEDULE (FIXED RATE)

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CHAPTER V FINANCIAL ASPECT

The purpose of this chapter is to project how much startup capital is needed, sources of capital, return on investments and other financial considerations.

Considerations

1. The owner shall invest P 500,000.00 in the business as shown in the next page, which approximates the total pre-operating expenses.

2. A service rendered is on cash basis.

3. The equipment and leasehold improvements are to be depreciated on a straight-line basis.

4. For simplicity, all employees are presumed to be single and that they have no dependents for purposes of computing the withholding tax.

5. Income tax is computed using the tabular tax rate for individuals provided by the National Internal Revenue Code.

6. There are no other current liabilities aside from the employee benefits and income tax since the entity pays its obligations before the end of the year.

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FSUU-Accontancy Program | All Rights Reserved. 55 89,580.00 75,980.00 165,560.00 10,000.00 6,000.00 3,500.00 1,095.00 11,879.50 32,474.50 150,000.00 Leasehold Improvements 11,500.00 Furnitures and Fixtures 18,500.00

3,000.00 2,500.00 5,500.00 199.00 2,000.00 90.00 4,000.00 100.00 2,250.00 9,000.00 Ballpens 60.00 500.00 150.00 200.00 1,500.00 1,600.00 1,687.50 2,600.00 3,540.00 100.00 739.75 1,310.00 31,626.25 19,500.00 7,600.00 10,000.00 3,280.00

Paint Oil and Grease Remover 5,000.00 45,380.00 Duties and Licenses 5,842.00

Rent 30,000.00

TOTAL 496,382.75

2 months advance 1 month deposit Plastic Bag Sando Bags Detergents Fabric Softener Fabric Freshener Liquid Bleach Plastic Basin Tagging paper Scotch tape Record Book Order Slip Delivery Slip Cleaning Products Calculator Water Hose Fire Extinguisher

Plastic Container (for filtration process) 1 sq.meter of Black Shade Cloth

Pre - Operating Expenses

Gloves

Laundry Basket Dipper

Hangers Steam Flat Iron Computer Set Vehicle Multicab Equipments Water Tank Exhaust fan Weighing Scale Machines

9kg Top Load Washing Machine with T-Drive Washing Technology

7kg Sensor Dry Dryer with Iron Aid

Face Mask

Advertising Expenses

Leaflets and flyers Tarpaulin

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Year 1 Year 2 Year 3 Year 4 Year 5

Current Assets

Cash 660,841.65 884,816.46 982,166.09 970,134.35 623,783.09 Supplies Inventories 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04 Total Current Assets 663,110.65 887,312.36 984,911.58 973,154.39 627,105.13 Non Current Assets

Equipments 348,034.50 348,034.50 348,034.50 348,034.50 348,034.50 Less: Accumulated Depreciation 50,606.46 101,212.92 151,819.38 202,425.84 253,032.30 Leasehold Improvements 11,500.00 11,500.00 11,500.00 11,500.00 11,500.00 Less: Accumulated Depreciation 2,300.00 4,600.00 6,900.00 9,200.00 11,500.00 Furnitures and Fixtures 18,500.00 18,500.00 18,500.00 18,500.00 18,500.00 Less: Accumulated Depreciation 3,700.00 7,400.00 11,100.00 14,800.00 18,500.00 Total Non Current Assets PHP 321,428.04 PHP 264,821.58 PHP 208,215.12 PHP 151,608.66 PHP 95,002.20

Total assets PHP 984,538.69 PHP 1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33

Current Liabilities

Due to SSS 4,680.00 4,680.00 4,680.00 4,680.00 4,680.00 Due to Philhealth 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00 Due to PAG-IBIG 1,672.32 1,672.32 1,672.32 1,672.32 1,672.32 Income Tax Payable 178,435.64 232,529.88 286,127.25 345,084.35 410,577.16 Total Current Liabilities PHP 185,987.96 PHP 240,082.20 PHP 293,679.57 PHP 352,636.67 PHP 418,129.48 Non Current Liabilities

Loan Payable 0.00 0.00 0.00 0.00 0.00

Total Liabilities PHP 185,987.96 PHP 240,082.20 PHP 293,679.57 PHP 352,636.67 PHP 418,129.48

Owner's Equity

Capital 798,550.73 912,051.73 899,447.14 772,126.38 303,977.85

Total Liabilities and Owner's Equity PHP 984,538.69 PHP 1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33

PROJECTED FIVE YEAR COMPARATIVE BALANCE SHEET

Lovebada Bango

LIABILITIES & OWNER'S EQUITY ASSETS

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Inventory, Jan 0 2,269.00 2,495.90 2,745.49 3,020.04 Purchases 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86 Freight-in 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04 Total Purchases 47,649.00 52,413.90 57,655.29 63,420.82 69,762.90 Purchase Discounts 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04 Net Purchases 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86 Cost of Inventoy Available for Use 45,380.00 52,187.00 57,405.70 63,146.27 69,460.90 Less: Inventory, Dec 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04 Cost of Inventoy Used 43,111.00 49,691.10 54,660.21 60,126.23 66,138.85

334,464.00

334,464.00 334,464.00 334,464.00 334,464.00 Total Depreciation of Direct Equipment 15,393.15 15,393.15 15,393.15 15,393.15 15,393.15

392,968.15

399,548.25 404,517.36 409,983.38 415,996.00 Cost of Services Provided

TOTAL COST OF SERVICES

Salaries of Direct Workers

Service Revenues PHP 1,648,920.00 PHP 1,813,812.00 PHP 1,995,193.20 PHP 2,194,712.52 PHP 2,414,183.77 Less: Discounts 49,467.60 54,414.36 59,855.80 65,841.38 72,425.51 Net Service Revenue PHP 1,599,452.40 PHP 1,759,397.64 PHP 1,935,337.40 PHP 2,128,871.14 PHP 2,341,758.26 Less: Cost of Services 392,968.15 399,548.25 404,517.36 409,983.38 415,996.00 Gross Profit PHP 1,206,484.25 PHP 1,359,849.39 PHP 1,530,820.04 PHP 1,718,887.76 PHP 1,925,762.25

Less: Expenses

Salaries & Wages 167,232.00 167,232.00 167,232.00 167,232.00 167,232.00 Depreciation - Equipment 35,213.31 35,213.31 35,213.31 35,213.31 35,213.31 Depreciation - Leasehold improvements 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00 Depreciation - Furnitures and Fixtures 3,700.00 3,700.00 3,700.00 3,700.00 3,700.00 Rent 140,000.00 120,000.00 120,000.00 120,000.00 120,000.00 Supplies 31,626.25 34,788.88 38,267.76 42,094.54 46,303.99 Advertising 5,500.00 3,000.00 3,000.00 3,000.00 1,000.00 SSS contribution 37,850.40 37,850.40 37,850.40 37,850.40 37,850.40 PhilHealth Contribution 7,200.00 7,200.00 7,200.00 7,200.00 7,200.00 PAG-IBIG Contribution 10,033.92 10,033.92 10,033.92 10,033.92 10,033.92 Duties and Licenses 5,842.00 2,500.00 2,500.00 2,500.00 2,500.00 Utilities 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 Repairs and Maintenance 5,000.00 12,000.00 12,000.00 12,000.00 12,000.00 Total General and Administrative Exp 489,497.88 473,818.51 477,297.39 481,124.17 483,333.62 Income Before Tax PHP 716,986.37 PHP 886,030.89 PHP 1,053,522.65 PHP 1,237,763.59 PHP 1,442,428.63 Income Tax (Tabular) PHP 178,435.64 232,529.88 286,127.25 345,084.35 410,577.16

Income After Tax PHP 538,550.73 PHP 653,501.00 PHP 767,395.40 PHP 892,679.24 PHP 1,031,851.47 PROJECTED FIVE YEAR COMPARATIVE INCOME STATEMENT

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Quantity

Cost/Equipment/F

urniture Total Acquisition Cost Scrap Value Est. Useful Life Annual Dep'n

9kg Top Load Washing Machine with

T-Drive Washing Technology 4 22,395.00 89,580.00 8,958.00 10 8,062.20 7kg Sensor Dry Dryer with Iron Aid 4 18,995.00 75,980.00 7,598.00 10 6,838.20 Steam Flat Iron 1 1,095.00 1,095.00 109.50 2 492.75

Direct Equipment - Overhead 15,393.15

Multicab 1 150,000.00 150,000.00 15,000.00 5 27,000.00 Water Tank 1 10,000.00 10,000.00 1,000.00 5 1,800.00 Computer Package 1 11,879.50 11,879.50 1,187.95 5 2,138.31 Weighing Scale 1 3,500.00 3,500.00 350.00 2 1,575.00 Exhaust Fan 1 6,000.00 6,000.00 600.00 2 2,700.00

Total Depreciation Equipments 348,034.50 35,213.31

Furnitures and Fixtures 18,500.00 18,500.00 5 3,700.00

Leasehold Improvements 11,500.00 11,500.00 5 2,300.00 378,034.50 56,606.46 Equipments Depreciation Table Lovebada Bango TOTAL

Description Consumption per day (Php) In One Year Total

1. Gasoline 100 312 31,200.00 2. Telephone 0.191362 312 59.70 3. Electricity 3.18936 312 995.08 4. Water 0.486 312 151.63 5. Computer 10.04648 312 3,134.50 35,540.92

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Cash Provided/Used by Operating Activities

Cash Receipts from Sales & Services PHP 1,599,452.40 PHP 1,759,397.64 PHP 1,935,337.40 PHP 2,128,871.14 PHP 2,341,758.26 Purchase of Inventory 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86 Payment of Advertising Fee 5,500.00 3,000.00 3,000.00 3,000.00 1,000.00 Payment of Utilities Expense 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 Payment of supplies 31,626.25 34,788.88 38,267.76 42,094.54 46,303.99 Payment of Rent 140,000.00 120,000.00 120,000.00 120,000.00 120,000.00 Payment of Repairs and Maintenance 5,000.00 12,000.00 12,000.00 12,000.00 12,000.00 Payment of Employee Salaries / Wages 466,152.48 466,152.48 466,152.48 466,152.48 466,152.48 SSS, Philhealth & PAG-IBIG Premium (ER&EE share) 83,075.52 90,627.84 90,627.84 90,627.84 90,627.84 Payment of Duties and Licences 5,842.00 2,500.00 2,500.00 2,500.00 2,500.00 Remittance of Withholding Tax - - - - -Payment of Income Tax 0.00 178,435.64 232,529.88 286,127.25 345,084.35

Net Cash Provided by Operating Activities 778,876.15 763,974.81 877,349.64 1,007,968.26 1,153,648.74

Cash Provided/Used from Investing Activities

Payment to acquire equipment 366,534.50 0.00 0.00 0.00 0.00 Payment for leasehold improvements 11,500.00 0.00 0.00 0.00 0.00

Net Cash Used in Investing Activities 378,034.50 0.00 0.00 0.00 0.00

Cash Provided from Financing Activities

Cash received as investment by owner 500,000.00 0.00 0.00 0.00 0.00 Payment for withdrawals by owner 240,000.00 540,000.00 780,000.00 1,020,000.00 1,500,000.00

Net Cash Provided by Financing Activities 260,000.00 -540,000.00 -780,000.00 -1,020,000.00 -1,500,000.00 Net Cash Inflow (Outflow) 660,841.65 223,974.81 97,349.64 -12,031.74 -346,351.26

Add: Beginning Cash Balance - PHP 660,841.65 884,816.46 982,166.09 970,134.35

Ending Cash Balance PHP 660,841.65 PHP 884,816.46 PHP 982,166.09 PHP 970,134.35 PHP 623,783.09 PROJECTED STATEMENT OF CASH FLOWS