Establishment of JEA Books

ESTABLISHMENT OF JEA BOOKS COMPANY: MANUFACTURER OF
HANDY COMPACT ACCOUNTING DICTIONARY
IN BATANGAS CITY
A Feasibility Study
Presented to the Faculty of
College of Accountancy, Business, Economics and
International Hospitality Management
Batangas State University, Batangas City
In Partial Fulfillment
Of The Requirements for the Degree
Bachelor of Science in Accountancy
By:
Del Mundo, Angelica M.
Perez, Ezra M.
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October 2015
APPROVAL SHEET
In partial fulfillment of the requirements for the degree of Bachelor of

Science in Accountancy, this feasibility study entitled “ESTABLISHMENT OF
JEA BOOKS COMPANY:MANUFACTURER OF ACCOUNTING COMPACT
DICTIONARY”, prepared and submitted by Del Mundo, Angelica M. and Perez
Ezra M., is hereby recommended for acceptance and approval for Oral
Examination.
_____________________________
DANIEL JOHN F. FALO, CPA
Adviser
Approved by the Committee on Oral Examination with a grade of ______.
PANEL OF EXAMINERS
______________________________________________
MA. CONCEPCION P. MANALO, CPA MBA
Chairman
____________________________ _____________________________
SHIRLYNE M. GUHIT, LLB, MPA JENICA ALLYSA A. RAZON, CPA
Member Member
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Accepted and approved in partial fulfillment of the requirements for the

degree of Bachelor of Science in Accountancy.
____________________ ________________________________
Date ELISA S. DIAZ, DBA, CPME, CMITP
Dean, CABEIHM
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ACKNOWLEDGMENT
The proponents would like to extend their most profound and heartfelt
gratitude to the following individuals for their considerable guidance, assistance
and support for the completion of the study:
To their school Batangas State University and to the College of
Accountancy, Business, Economics and International Hospitality Management
(CABEIHM) Department for chasing of this activity that boosted the proponents
skills and abilities as preparation to life outside the portal of this institution;
To the Dean of CABEIHM, Dr. Elisa S. Diaz, for patiently examining and
assisting the proponents with their project by making thorough checking and
verifications of the documents;
To the Batangas State University Library and its staff for furnishing the
needed facts and information by allowing them to utilize the available books and
other references;
To their adviser, Mr. Daniel John F. Falo, who exhibited the qualities of a
competent adviser by showing his patience, commitment and sharing his
expertise in improving the quality of this study;
To the Chairman of the defense panel, Mrs. Ma. Concepcion Manalo, and
to the panel members, Ms. Jenica Allysa Razon and Mrs. Shirlyne Guhit, for their
constructive criticisms and for giving the proponents essential ideas,
recommendations and advices for the further improvement of the feasibility
study;
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To their grammarian, Mrs. Lorena Mendoza for checking over the
feasibility study paper for its precision;
To their friends and classmates for the endless support and care, and for
the teamwork and friendship developed during the course of the study;
To their dearest parents and families whose presence and love gave the
proponents strength and inspirational to finish the endeavor; and whose moral
and financial support remain unfaltering;
And most of all, to the Almighty God for giving them the strength, power,
faith and courage to continue and succeed with the study despite all the
challenges and failures they encountered.
Angel
Ezra
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TABLE OF CONTENTS
TITLE PAGE
TITLE PAGE ................................................................................................................ i
APPROVAL SHEET.................................................................................... ii
ACKNOWLEDGEMENT ............................................................................ iii
TABLE OF CONTENTS ............................................................................. 4
LIST OF TABLES ...................................................................................... 5
LIST OF FIGURES ............................................................................................................................................. 6
LIST OF EXHIBITS .............................................................................................................................................
LIST OF SCHEDULES ...........................................................................................
SUMMARY OF THE PROJECT

Name of the Firm ....................................................................................................................................................... xi
Location .................................................................................................................................................................... xi
Brief Description of the Product .................................................................................................................................. xi
Market Feasibility ....................................................................................................................................................... xi
Technical Feasibility ..................................................................................................................................................xiii
Management Feasibility .............................................................................................................................................xiv
Financial Feasibility ...................................................................................................................................................xiv
Socio Economic Contribution ...................................................................................................................................... xv
CHAPTER
I. BACKGROUND OF THE STUDY
Introduction................................................................................................................................................................ 1
Brief Background of the Study ..................................................................................................................................... 4
Objectives of the Study ............................................................................................................................................... 6
Scope and Limitation of the Study ................................................................................................................................ 7
Definition of Terms ..................................................................................................................................................... 9
II. MARKET STUDY

Objectives of the Study ............................................................................................................................................. 12
Methodology ............................................................................................................................................................. 13
Research Design ....................................................................................................................................................... 13
Respondents of the Study .......................................................................................................................................... 13
Data Gathering Instrument ........................................................................................................................................ 14
Date Gathering Procedure ......................................................................................................................................... 14
Statistical Treatment of Data ..................................................................................................................................... 17
Demand ................................................................................................................................................................... 17
Major Consumer of the Product.................................................................................................................................. 17
Consumption for the Past Years ................................................................................................................................. 18
Historical Demand ....................................................................................................................... 18
Projected Demand ...................................................................................................................... 19
Supply ...................................................................................................................................................................... 20
Historical Supply ......................................................................................................................... 20
Projected Supply ......................................................................................................................... 21
Demand and Supply Analysis ..................................................................................................................................... 22
Market Gap................................................................................................................................. 22
Market Share .............................................................................................................................. 22
SWOT Analysis.......................................................................................................................................................... 23
Strength ..................................................................................................................................... 24
Weakness ................................................................................................................................... 25
Opportunity ................................................................................................................................ 26
Threat ........................................................................................................................................ 27
Marketing Strategies and Programs ............................................................................................................................ 27
Product ...................................................................................................................................... 28
Product Size/Category .................................................................................................. 29
Brand Name ................................................................................................................ 29
Packaging .................................................................................................................... 30
Pricing ........................................................................................................................................ 32
Place of Distribution .................................................................................................................................................. 33
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Promotion................................................................................................................................................................. 34
Generalization ........................................................................................................................................................... 36
III. TECHNICAL STUDY

Product .................................................................................................................................................................... 39
Product Description ................................................................................................................................................... 39
Uses of the Product ................................................................................................................................................... 40
Manufacturing Process .............................................................................................................................................. 40
Description of the Process ......................................................................................................................................... 40
Process Flowchart ..................................................................................................................................................... 44
Production Schedule .................................................................................................................................................. 45
Factory Machinery and Equipment ............................................................................................................................. 45
Factory Furniture and Fixtures ................................................................................................................................... 46
Factory Tools and Supplies ........................................................................................................................................ 47
Maintenance Supplies ................................................................................................................................................ 47
Office Equipment ...................................................................................................................................................... 48
Office Furniture and Fixtures ..................................................................................................................................... 49
Office Supplies .......................................................................................................................................................... 49
Direct Materials ......................................................................................................................................................... 50
Indirect Materials ...................................................................................................................................................... 51
Lease and Leasehold Improvements........................................................................................................................... 52
Utilities ..................................................................................................................................................................... 52
Plant Location ........................................................................................................................................................... 54
Plant Size and Layout ................................................................................................................................................ 56
Waste Disposal ......................................................................................................................................................... 58
Direct Labor Requirements ........................................................................................................................................ 58
Generalization ........................................................................................................................................................... 59
IV. MANAGEMENT STUDY

Form of the Business ................................................................................................................................................. 61
Capitalization ............................................................................................................................................................ 62
Organizational Structure ............................................................................................................................................ 63
Manpower Requirements ............................................................................................................. 65
Job Specification ......................................................................................................................... 65
Job Description ........................................................................................................................... 67
Compensation ............................................................................................................................. 69
Organizational Policies ............................................................................................................................................... 70
Employees Policy ........................................................................................................................ 70
Retailers Policy ........................................................................................................................... 71
Outsourcing Policy ...................................................................................................................... 72
Legal Requirements .................................................................................................................................................. 73
Generalization ........................................................................................................................................................... 79
V. FINANCIAL STUDY
Total Project Cost ..................................................................................................................................................... 83
Capital Requirements ................................................................................................................................................ 85
Sources of Financing ................................................................................................................................................. 85
Financial Assumptions ............................................................................................................................................... 85
Financial Statements ................................................................................................................................................. 90
Statement of Financial Performance ............................................................................................. 90
Statement of Cash Flows ............................................................................................................. 90
Statement of Changes in Equity ................................................................................................... 90
Statement in Financial Position .................................................................................................... 90
Notes to Financial Statements .................................................................................................................................... 97
Financial Analysis .................................................................................................................................................... 103
Financial Ratio ........................................................................................................................................................ 103
Liquidity Ratio ........................................................................................................................... 103
Current Ratio ............................................................................................................. 103
Quick or Acid Test Ratio ............................................................................................. 104
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Working Capital ......................................................................................................... 105

Working Capital to Total Assets ................................................................................... 105
Profitability Ratio....................................................................................................................... 106
Gross Profit Margin .................................................................................................... 106
Operating Profit Margin .............................................................................................. 106
Net Profit Margin........................................................................................................ 107
Rate of Return on Assets ............................................................................................ 107
Rate of Return on Equity ............................................................................................ 108
Solvency Ratio .......................................................................................................................... 108
Debt Ratio ................................................................................................................. 109
Equity Ratio ............................................................................................................... 109
Debt to Equity Ratio ................................................................................................... 109
Activity Ratio ............................................................................................................................ 110
Accounts Receivable Turnover .................................................................................... 110
Average Collection Period ........................................................................................... 110
Inventory Turnover .................................................................................................... 111
Average Sales Period .................................................................................................. 111
Asset Turnover .......................................................................................................... 112
Break Even Point Analysis .......................................................................................................... 112
Break Even ................................................................................................................ 113
Break Even Sales ....................................................................................................... 113
Margin of Safety ........................................................................................................ 114
Margin of Safety Ratio ................................................................................................ 114
Payback Period ......................................................................................................................... 115
Generalization ......................................................................................................................................................... 115
VI. SOCIO-ECONOMIC CONTRIBUTION

Contribution to the Philippine Economy .................................................................................................................... 117
Employment Generation .......................................................................................................................................... 118
Social Desirability .................................................................................................................................................... 119
BIBLIOGRAPHY
EXHIBITS
SCHEDULES
APPENDICES
CURRICULUM VITAE
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LIST OF TABLES
Table No. Title Page
2.1 Population of Business Students Taking Accounting Subjects .... 16
2.2 Historical Demand of the Product ............................................. 19
2.3 Projected Demand ...................................................................................................................... 19
2.4 Historical Supply ......................................................................................................................... 21
2.5 Projected Supply ......................................................................... 21
2.6 Market Gap................................................................................................................................. 22
2.7 Market Share .............................................................................................................................. 23
2.8 Selling Price of the Handy Compact Accounting Dictionary ............................................................. 32
2.9 Related Price of Competitors ........................................................................................................ 32
2.10 Promotion Mix Strategy ............................................................................................................... 35
3.1 Production Schedule per unit ....................................................................................................... 45
3.2 Factory Machinery and Equipment ............................................................................................... 45
3.3 Factory Furniture and Fixtures ..................................................................................................... 46
3.4 Factory Tools and Supplies .......................................................................................................... 47
3.5 Maintenance Supplies .................................................................................................................. 48
3.6 Office Equipment ........................................................................................................................ 48
3.7 Office Furniture and Fixtures ....................................................................................................... 49
3.8 Office Supplies ............................................................................................................................ 50
3.9 Direct Materials ........................................................................................................................... 51
3.10 Indirect Materials ........................................................................................................................ 51
3.11 Leasehold Improvements ............................................................................................................ 52
3.12 Utilities ....................................................................................................................................... 53
4.1 Partner’s Contribution.................................................................................................................. 63
4.2 Compensation Schedule .............................................................................................................. 69
4.3 Schedule of Taxes and Licenses ................................................................................................... 79
5.1 Total Project Cost ....................................................................................................................... 84
5.2 Projected Income Statement........................................................................................................ 91
5.3 Projected Statement of Changes in Partner’s Equity ...................................................................... 92
5.4 Projected Statement of Cash Flows .............................................................................................. 93
5.5 Projected Statement of Financial Position .................................................................................... 95
5.6 Current Ratio ............................................................................................................................ 104
5.7 Quick or Acid Test Ratio ............................................................................................................ 104
5.8 Working Capital ........................................................................................................................ 105
5.9 Working Capital to Total Assets .................................................................................................. 105
5.10 Gross Profit Margin ................................................................................................................... 106
5.11 Operating Profit Margin ............................................................................................................. 107
5.12 Net Profit Margin....................................................................................................................... 107
5.13 Rate of Return on Assets ........................................................................................................... 108
5.14 Rate of Return on Equity ........................................................................................................... 108
5.15 Debt Ratio ................................................................................................................................ 109
5.16 Equity Ratio .............................................................................................................................. 109
5.17 Debt to Equity Ratio .................................................................................................................. 110
5.18 Accounts Receivable Turnover ................................................................................................... 110
5.19 Average Collection Period .......................................................................................................... 111
5.20 Inventory Turnover ................................................................................................................... 111
5.21 Average Sale Period .................................................................................................................. 112
5.22 Asset Turnover ......................................................................................................................... 112
5.23 Break Even Volume Analysis ...................................................................................................... 113
5.24 Break Even Sales Analysis.......................................................................................................... 113
5.25 Break Even Selling Price per unit ............................................................................................... 114
5.26 Margin of Safety ....................................................................................................................... 114
5.27 Margin of Safety Ratio ............................................................................................................... 115
5.28 Payback Period ........................................................................................ 115
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LIST OF FIGURES
Figure No. Title Page

2.1 Packaging ....................................................................... 31
2.2 Channel of Distribution .................................................... 33
2.3 Tarpaulin ..................................................................................................................... 36
3.1 Process Flowchart ........................................................................................................ 44
3.2 Plant Location................................................................... 55
3.3 Plant Size and Lay out .................................................................................................. 57
4.1 Organizational Structure ............................................................................................... 64
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LIST OF EXHIBITS
Exhibit No. Title
1 Total Number of Business Students Taking Accounting Subjects
2 Average Annual Consumption
3 Historical Demand
4 Projected Demand
5 Historical Supply of Related Product
6 Projected Supply
7 Market Gap
8 Market Share
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LIST OF SCHEDULES
Schedule No. Title
1 Selling Price
2 Sales Volume
3 Direct Materials Purchases
4 Direct Materials Used
5 Freight In
6 Direct Labor
7 Rent Expense
8 Utilities Expense
9 Maintenance Expense
10 Depreciation of Property, Plant and Equipment
11 Fringe Benefits
12 Salary-Manager
13 Indirect Materials
14 Factory Tools and Supplies
15 Factory Overhead
16 Office Supplies
17 Legal Fees and Licenses
18 Allowance for Doubtful Accounts
19 Delivery Expense
20 Advertising Expense
21 Fixed Cost
22 Variable Cost
23 Contribution Margin per unit
24 Annual Cash Return

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25 Schedule of Profit Distribution

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SUMMARY OF THE PROJECT
Name of the Firm
The firm will be registered under the name of "JEA Books Company". The
proponents use their initials in making the firm's name. This is easy to recognize
and memorize. Also the proponents believe that it will catch the interest of the
people.
Location
The proponents chose the location at Brgy. 10 Noble St., Batangas City as
business location. They chose this plant location primarily because it is near the
target market and retailers of the product wherein it will lessen the transportation
costs to be incurred in delivering the product. It is also near where the firm will
outsource some of the manufacturing process of the product.
The plant site and the head office will be situated in one location.
Separation of these two sites will incur additional expense. Also the manager can
supervise the production at all times without living the other site. The plant
particularly located near at front of Nuciti Central wherein many people pass by
and also jeepneys. The City Planning and Development Office approved the
plant location.
Brief Description of the Project
This project primarily focused on establishing JEA Books Company, a
manufacturing business organized as a general partnership operating under

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BMBE, which will manufacture Accounting Dictionary. This is new variety of
product wherein the authors put accounting terms in one small book. The project
involved conducting survey to 372 students in different universities and colleges
within Batangas City and 30 retailers of related product in Batangas City. This
also involved the determination of production requirements and appropriate
organizational structure, policies and requirements for the business. Projections
of Financial statements and analyses is made to determine if the business will be
profitable and survive the five years of operation and the amount invested will be
recovered. This also determines the possible contributions of the business in the
society.
Project Summary
The proponents conducted several studies to assess the feasibility of the
proposed product. They considered different factors that might affect the
marketability of the product. The summary of the several studies is as follows:
Market Feasibility
JEA Books Company will focus on manufacturing and distribution of
Accounting Dictionary. As a new product, it is intended to give the consumer the
information they need. In the first year of operation it is expected to have a
projected demand of 5,402 and in 2021 a projected demand of 6,830, which
indicate an increasing demand of the product. The supply though increasing, was
not able to meet the demand of the customers, that's why the proponents had
thought to offer Accounting Dictionary, which smaller compare to accounting

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books and beneficial to the users of the product. The market share of the product
is attainable. The firm forecasts to increase production by 10 percent.
The product offers the students an easy way of obtaining the meaning of
accounting terms and have this wherever they go. The product is made on high
quality paper and the fonts are readable. The cover is laminated to avoid easy
damage on the product. The selling price of the product is Php361.46 per unit.
The product will be delivered to its retailers down to its consumers. The
proponents will join different book fairs and give discounts on first week of
operation to promote the product.
Technical Feasibility
Accounting Dictionary is different from competitors because it offers
different dimension of the product. The proponents will produce 180 units in a
month and 2,160 units every year. In this aspect, the step-by-step procedure
includes the lay outing and typesetting of the product, printing of manuscripts,
cutting of printed manuscripts into given size, outsourcing of front cover, picking-
up of finished product, binding of printed materials, inspection of the product and
cleaning the area. One of the partners will be the manager of the business who
will supervise and manage the entire operation.
The business is located at the Noble St., Batangas City. The land and
building will be rented for Php2,600 a month. The business will also avail the
utilities like electricity, water and telecommunications in operating the business.

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Management Feasibility
The form of business organization will be partnership wherein both
partners will share responsibilities. The profits and losses will be divided equally.
The firm adopted line organizational structure.
The workers will receive Php200 each per day. He will be working 20 days
a month and 240 days a year. Since the project is accounting-relate, the firm will
not hire a bookkeeper. Managing partner will perform the bookkeeping services.
Only the workers are entitled to fringe benefits such as SSS, PhilHealth and 13th
month pay. In order to legally start the business, the firm will be registered in
different government offices like SEC and DTI.
Financial Feasibility
The initial investment of the business will amount to Php230,000.00. The
funds to be invested by the partners will come from their personal savings and
relatives.
On the first year of operation the firm will generate an income of Php88,
893.76 since, the gross profit of Php229,154.75 is more than enough to cover the
operating expenses of Php137,511.70. This is favorable to the business as a
new entrant in the market. The Total Assets of the business in the first year of
operation is Php292,791.50 while its Total Liabilities are Php16,969.97. Hence,
the partnership has the ability to pay its obligation in due time because the assets
is higher than liabilities. The firm has current ratio of 9.98:1, which signifies that
the company is able to meet its short-term obligations.

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The quick assets ratio is 7.75:1which means that the company has the ability to
pay its current liabilities without depending on its inventory. The firm will able to
recover its investment within one year and 11 months of operation. This project is
feasible because it does not exceed the half of the lifespan of the project.
Socio-Economic Contribution
The establishment of the proposed business will have a large contribution
on the economy of Batangas through employment generation. There will also be
a significant contribution to the economy of the community where the firm will be
based through continuous improvement of the living standard of the people. The
establishment of the business will also provides consumer-enhanced satisfaction
through the additional competition among products of related products that will
lead to lower prices and quality improvement.

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Chapter I
BACKGROUND OF THE STUDY
Introduction
The wealth of knowledge acquired by an individual after studying
particular subject matters or experiencing life lessons that provide an
understanding of something. Education requires instruction of some sort from an
individual or composed literature. The most common forms of
education result from years of schooling that incorporates studies of a variety of
subjects. It has different level wherein a student should pass to go through to
another level. One of these levels is the tertiary level or also known as higher
education.
Higher education is a crucial aspect in every individual. It is an educational
level that follows the completion of a school providing a secondary education. It
refers to the stage of learning that occurs at universities, academies, colleges,
seminaries, and instates of technology which award bachelor’s or associate
degree. College students use various instruction materials to acquire knowledge
and eventually serve as their manual reference. These materials that they
commonly used are the books.
Books are very significant to every college students. A book can be
broadly defined as a written document of at least 49 text pages that
communicates thoughts, ideas, or information. It is a collection of sheets of
paper, or similar materials, blank, written, or printed, bound together; commonly,

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manly folded and bound sheets containing continuous printing or writing. It is
essential for students or for any person to acquire knowledge and gain
intelligence. It is considered as a weapon of most students in pursuing their
studies and as one of the main sources of information. It is a big help for every
student on their daily studying and also for everyone out there to gain some
knowledge on a particular thing or subject. To a great extent, they need book to
supplement what are being taught in the class. Although, some instructors and
professors provide handouts that contain the topics for the class in an outlined
form, it is only book that a student can procure detailed facts and get deeper into
course. Further progress was made; including the invention of new machineries
and equipment and modern technology that expands the information such as the
online services and websites.
Businesses today cannot afford to stand still because of the changes that
are taking place in the world. In the ancient times, the population was
manageable, and people could use the available resources for the family needs
to sustain them. In the modern world and with the changes in technology, there
has been difficulty because people are experiencing high living standards and
more demand of resources. This study features on ways that a business can use
to deliver products that are essential to the population, which rapidly grows in the
world, and the adaption methods to both social and demographic changes. It will
also outstanding on the technological impact to the business operations and
reliability in the ensuring that they meet people’s needs.

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The development in technology has led to increase in the number of
people in the world, leading to faster depletion of resources. This, therefore,
necessitates improvement in company production and improved services so that
they can be able to meet the increased requirements of the population. These
companies also need to adapt to both social and demographic changes to enable
them work efficiently and effectively (Wothington & Britton, 2009, 12).
Growing firms invest more in Information Communication Technologies
(ICTs) and are more efficient in terms of the services and products that they
offer. The change in technology has enabled people to get access to services
quickly and is of satisfactory quality. Improving companies’ performance helps
them relate well with their customers socially and assists them to deliver the
products to customers on time.
This makes the customers appreciate the fact that they can be able to
meet their requirements at the right time despite having requested for them a bit
late. Research shows that, in the ancient times, people were not in a hurry of
getting their products delivered because the population was relatively small.
Every individual could get whatever they needed, without having to request for
production from the companies.
Nowadays, technological world is providing vast information through
Internet, online articles and libraries from which a student can nourish her/him
with knowledge on a particular subject. But most students are not aware of
Internet fallacies wherein data are unreliable. In view of these, students are
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encouraged to use books as a reference. However, most books are in big size
and thick specifically accounting books. That’s why most business students tend
not to bring their book because it is not fit on their small and fashionable bag.
Also, professors and instructors asked for the meaning of certain accounting
terms in which some of it is not defined in higher accounting books because it
was defined repetitively in lower accounting books. Hence, the students are
having a hard time of recalling the meaning of those accounting terms.
Accounting Dictionary is one of the best options to remedy the trouble
encountered by students in obtaining the meaning of the terms their instructor
and professor asked. In addition to this, JEA Books Company introduces the new
kind of dictionary that is beneficial to business students. Accounting dictionary
can be a substitute to accounting books in looking for definition of specific
accounting terms.
Brief Background of the Study
Throughout the ages, books have changed dramatically, assuming a
number of different forms. By the nineteenth century, however, the process of
hand printing could not meet the demand for books quickly enough. Printers
developed larger presses to accommodate larger sheets of paper and/or the
newly invented continuous rolls of paper. To a great extent, the evolution of the
book has followed the expansion of communication forms and methods and the
ever-increasing demand for information. One of the kinds of those books is what
they called dictionary. It is a collection of words in one or more specific

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languages, often listed alphabetically (or by radical and stroke for
ideographic languages), with usage of information, definitions,
etymologies, phonetics, pronunciations, translation, and other information or a
book of words in one language with their equivalents in another, also known as
a lexicon.
The oldest known dictionaries were Akkadian Empire cuneiform tablets
with bilingual Sumerian–Akkadian wordlists, discovered in Ebla (modern Syria).
The earliest dictionaries in the English language were glossaries of French,
Italian or Latin words along with definitions of the foreign words in English. Of
note, the word dictionary was invented by an Englishman called John of
Garland in 1220 - he had written a book Dictionarius to help with Latin diction. An
early non-alphabetical list of 8000 English words was the Elementarie created
by Richard Mulcaster.
In view of the fact that of technology, books became available in greater
numbers. Although Internet provides information still books remain the primary
source of knowledge throughout the most of the world. One of those books is
accounting books. But most accounting books are thick; others will tend to leave
it on their house because it is not easy to carry and because of its heaviness.
That is the reason why the proponents came up with an idea of producing an
Accounting Dictionary. Here in Batangas City, creating an Accounting Dictionary
is not considered as yet a kind of product line of the business.
Accounting Dictionary provides an easy way of acquiring the meaning of

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certain accounting terms. It is also portable in which students can carry it
wherever they go. It is a small yet contains knowledge that every student needs.
It is a dictionary that students can use substitute for accounting books. It contains
meaning of accounting terminologies similar to its definition on accounting books.
The proponents assure the business students that the meaning of accounting
terms is in accordance with applicable standards. These things are relevant for
the proponents in proposing the product. The rationale of proposing this
feasibility study of producing Accounting Dictionary is to provide the students with
information they are having a hard time of; acquiring the meaning of certain
accounting terms and carrying it wherever they go.
In this study, the feasibility of Accounting Dictionary as a new entrant in
the book industry will be determined through different aspects to be thoroughly
analyzed by the proponents.
Objectives of the Study
The overall objective of the study is to determine the feasibility of Handy
Compact Accounting Dictionary in the market. In performing the research the
proponents focus on the following objectives to achieve the desired outcome:
1. To determine the feasibility of the proposed product in terms of
marketing aspect by means on how to create or increase the degree to
which the consumers’ needs and wants are met;

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2. To determine the feasibility of the product through distinguishing the
most suitable design production process and plant location for proposed
business;
3. To determine the feasibility of the product with regard to management
by distinguishing the suitable nature of the business, the company
policies and legal requirements for business to operate;
4. To determine the progress of the project in terms of its initial status and
condition; and
5. To determine the effect of the project in the society and economy as
whole.
Scope and Limitations
This feasibility study is focused on establishing JEA Books Company, a
firm that will produce an Accounting Dictionary in Batangas City. This study
includes market, technical, management, and financial that serves as basis in
order to determine the scope and limitation of the study.
The research on market feasibility focuses on the target market and its
demand for the product. The questionnaires were distributed to the respondents
in accordance with computed sample whom are the students having accounting
subjects in six universities and colleges in Batangas City. Another set of
questionnaires were distributed to number of retailers selling the related product
in Batangas City, to gather data with regards to the demand and supply of related
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products from 2010-2014. The proponents resorted to government agencies to
gather sufficient data for their survey. But other personnel to whom the
proponents ask for relevant information did not easily or even did not disclose the
needed information at all. Another limitation is that regardless of the computed
data from the gathered information, the average annual consumption is one.
The technical aspect, which deals with appropriate production facilities,
needed to provide all efficient and effective operation and the time and motion
needed of the business. The process of producing front and back cover of the
accounting dictionary will outsource to the external company. The selected
process requires expensive amount of equipment and costly for the company.
This kind of strategy helps save money thus; contribute to growth of the
business. Putting some part of the business into other company’s hand may
affect its subjectivity, possible problems related to quality and turnover time may
be considered as limitations to its technicality.
The management aspect covers the form of business, capitalization and
the amount of each partner contribution, organizational structures and human
capital’s qualifications for designated positions and responsibilities. The business
will acquire equipment that will use in producing their product. In turn, it increases
the time in overseeing as well as managing its routinely activities in producing
outputs. The company also requires only few employees due to process they
exploit then it gives free time for management to focus rapid growth of the
business. In the extent of this study, legal requirements imposed by the

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government where also considered. However, the parties encountered difficulties
in applying such requirements.
The financial aspect compromises the initial capital requirement, its
projected financial statements for the next five years of operation and its financial
analysis. It presents the expenses to be incurred and the possible income the
company can generate at the start of the business and in the succeeding years.
Also, it shows the ability of the firm to meet its maturing obligations. Resources of
the firm is limited because of lack of funds also the reason why the partners elect
to outsource some of its manufacturing process.
The socio-economic aspect deals with what the firm can contribute to the
economy. Different universities surround the location of the business and it was
found near in the market. The business made this kind of product for the benefits
of the business students from the local area. For the retailers of the related
product it serves as a guides and stepping stone to economic growth by also
paying taxes. The firm pays the right taxes that can also add the government
income and can contribute to the portion of economy government projects. The
firm will provide high quality products to the consumers through effective
implementation of production policies and cooperation of its suppliers and
retailers. Moreover, the firm will also provide waste management and proper
segregation of waste in which it is the social responsibility of the firm.
Definition of Terms
These are significant terms used in the study;

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Accounting. It is the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events which are in
part at least of a financial character and interpreting the results thereof (Ballada,
2011). The partners as the sources of the manuscript in their product used
different accounting books authored by known Filipino CPA’s.
Book. A handwritten or printed work of fiction or nonfiction usually on
sheets of paper fastened or bound together within covers (Merriam-Webster,
2010). The product of the business falls under the category of book and it is
known as specialized dictionary. These dictionary covers the terminology in the
field of accounting.
Capital. This account is used to record the original and additional
investments of the owner of the business entity (Ballada, 2010). In the study, the
partners will contribute amount of money to meet the capital requirement of the
business. The partners have equal contributions and that amount will be the
capital to be used to operate the business.
Dictionary. A book containing the words of a language, arranged
alphabetically, with explanations of they’re meanings; a lexicon; a vocabulary; a
wordbook (Merriam-Webster, 2010). The company will produced a product and it
is a kind of dictionary that covers the terminologies in the field of accounting.
Such dictionary called as Accounting Dictionary.
Equipment. They are tangible property (other than land or buildings) that
is used in the operations of a business (Business Dictionary, 2015). Set of

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equipments that the company will purchase and will use for the operation of the
business. And such equipments will serve as the foundation and life-blood of the
business to function.
Outsourcing. Is to obtain goods and services from an outside supplier (Cabrera,
2011). Outsourcing the front and back cover will practice by the company since it
requires high priced equipments.
Plagiarism. An act or instance of using or closely imitating the language and
thoughts of another author without authorization and representation of that author’s
work as one’s own, as by not crediting the original author (Merriam-Webster, 2010).
The company’s product has the same nature with the book that can be copied easily
without the authorization of author. So, this will be considered as one of the biggest
threats of the company.
Target Market. It is a fairly homogenous group of people or organizations
to whom a company wishes to appeal (Go, 2011). The potential buyers and
users of the product are from different business students in Batangas City.
Technology. The branch of knowledge that deals with the creation and
use of technical means and their interrelation with life, society and the
environment, drawing upon such subjects as industrial arts, engineering, applied
science and pure science (Oxford, 2015). The company have varies of
equipments and machineries that serves as the foundation of the business.

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University. An institution of learning of the highest level, having a college of
liberal arts and a program of graduate studies together with several professional schools
as of theology, law, medicine and engineering, and authorized to confer both
undergraduate and graduate degrees (Oxford, 2015). The Business students from
different Universities in Batangas City who have accounting subjects are the
respondents of the study.

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Chapter II
MARKET STUDY
Marketing is the process of continuously and profitably satisfying the target
customer’s needs, wants and expectations superior to competition (Go, 2011). It is one
of the most important aspects of every project feasibility study that should be taken into
primary consideration. This is so because the success and failure of business firm
depends on the marketability of the product through inconspicuous analysis of the
business total demand and supply.
For the business to prosper, it should given time and effort. The proponent of
this business has the desired creativity so as to be able to provide the quality service to
its customer. The Marketing strategies should be established to develop the market
awareness and understanding of the entity’s product.
The main objective of the market study is to determine the product’s viability in
the market. Specifically, it sought to determine the following:
1. Measure the size, nature and growth of total demand for the proposed product;
2. Determine the description and price of the product;
3. Assimilate the supply situation and the nature of competition;
4. Know the different factors affecting the market of the product; and
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5. Formulate the appropriate marketing program to be planned and strategies to
be utilized in the penetration of the product in the market
Methodology
To be able to achieve the necessary information data gathering is done through
the use of different methodologies. The methodologies are used to assess the
marketability of the product and the present consideration of the market. Among these
methodologies are: research design, respondents of the study, data-gathering
instrument, data gathering procedures and statistical treatments of data.
Research Design
Research design is a schema, which maps out of the source of data. In
conducting the research, descriptive method of research was used to describe the target
customer taste, preferences and behavior towards the proposed product, which, leads
to the present issues concerning the significance of the data. It is also the purposive
process of gathering, analyzing, classifying and tabulating data about prevailing
conditions, practices, belief, processes and trends and then making adequate and
accurate interpretation about such data. Information were attained and gathered
through questions concerning the nature of supply and demand in the target area.
Respondents of the Study

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The proponents chose the business students who have an accounting subjects
from universities and colleges located in Batangas City as their target market for they
are considered as the main users of the proposed product. The 372 selected students
were given a set of questionnaires, which the proponents prepared.
The 30 chosen retail outlets selling related products in the Batangas City were
also given another set of questionnaires. The information gathered were used to
determine if the respondents are willing to purchase and retail the products, this was
also used to determine the demand and supply of the proposed product.
Data Gathering Instrument
Sufficient relevant data are important in the conduct of the research. This can be
acquired through different techniques and processes in which interviews and
questionnaires are commonly used. These tools are useful in acquiring information for
determining the demand and supply of the proposed product. The proponents prepared
two sets of questionnaire; one for the target market and the other for retailers selling
related products in Batangas City.
The proponents prepared questionnaires and the panelists and other experts
validated it. Corroboration was took a day before it finalized and distributed to
respondents. The set of questionnaires was subdivided into two parts; the personal
information and the customers preference section which can be answered by putting a
check mark on the blank provided. The questionnaires intended for the respondent is
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consists of questions that provide the data gathering of the available demand supply in
the market.
Data Gathering Procedure
Information about the products historical demand is vital in the completion of
the study. Before the accumulation of data, the proponents conducted a background
study in the industry in which the proposed product belongs by conducting an interview
to the manufacturer of the related product.
After the validation of the questionnaires, it was distributed to selected 30
different business students of Batangas State University Malvar Campus for the dry run.
The proponents conducted a dry run to ensure that the questions presented are
understandable and to determine if the proposed products have potential in the
market. Careful elaborations about the product details were also considered to
emphasize unclear points of questionnaires. Afterward it was deal out to the
respondents of the study and they are business students from different Universities in
Batangas City. Interviews were also conducted to the selected retailers of the related
product to gain additional information useful in the completion of the study. Moreover,
they analyzed and interpreted the collected data relevant to the study.
Statistical Treatment of Data

116
Total number of universities and colleges located in Batangas City were gathered
from City Planning and Development Office, and the population of each universities and
colleges were gathered through the inquiry of the proponents in registration office.
Table 2.1
Population of Business Students Taking Accounting Subjects
Particulars Population % Number of

Number Respondents
Batangas State University- Main I 2,710 51.0550113 190
Colegio ng Lungsod ng Batangas 160 3.014318011 11
Golden Gate Colleges 221 4.163526752 15
Lyceum of the Philippines- 608 11.45440844 43

Batangas
University of Batangas 1,097 21.24111536 77
Westmead International School 512 9.645817634 36
Total 5,308 100.00 372

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The Table 2.1 shows the population data of the students in different universities
and colleges. It also shows the number of respondents in each university.
With the population data gathered as a basis, the proponents computed the
sample size using Slovin’s Formula:
n= N
1 + Ne2
Where:
n= sample size
N= total number of accounting students in six universities and colleges in

Batangas City
e= margin of error
n= 5,308
1+ (5,308 x .052)
n= 5,308
14.27
n= 372
The computed sample size of 372 indicates the number of respondents to be
selected in the 5,308 students taking accounting subjects in Batangas City. The
proponents used random sampling as a mean of sample selection and apportioned the
total population per universities and colleges. The proponents distributed the
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questionnaires to the respondents. The information taken from 5,308-sample
population was used as a basis in determining the demand for the product.
In gathering data from historical supply, the proponents visited the 30 different
retail outlets in Batangas City selling the related product and conducted a survey using
the constructed questionnaires.
Demand
Demand refers to how much quality of a product or service is desired by
the buyers. The quantity demanded is the amount of the product people are
willing to buy at a certain price. It also refers to the relationship between the price
that is changed and the amount that will be bought at that price. The market
demand for a product is based on the total volume of goods or product that the
consumers are willing to purchase.
Major Consumer of Product
Consumer is the purchaser of a good or service for his own need, wants
and satisfaction and basically, for his/her final use and consumption. The major
consumers of the proposed product, Accounting Dictionary, are the students from
different universities and colleges in Batangas City taking accounting subjects.
The universities and colleges of Batangas City were chosen as the target market
of the proposed product because of the increasing population of students and
economic growth and development in the area. The rapid growth and the
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purchasing power were also considered as factors affecting the identification of
the target market.
Consumption for the Past Years
To know the usage of the dictionary in the previous years, the proponents
used the survey questionnaires. In connection to this, the survey questionnaires
were distributed to six universities and colleges in Batangas City. Through this,
the proponents determined the demand of dictionary during the past five years.
Historical Demand
Historical demand is the basis in making decisions. Almost any small
business uses the historical demand data to predict the future demand of the
product. It can be analyzed through the past consumption of the target market for
the past few years of the related products. Since “Handy Compact Accounting
Dictionary” is the first dictionary containing accounting terminology, the
proponents used the population of students having accounting subjects in every
college and university in Batangas City for the past five years. Through this
analysis, the consumption of the past five years from 2010 up to 2014 was
determined and it is presented in Table 2.2.

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Table 2.2
Historical Demand of the Product
Year Historical Demand
2010 2,907
2011 3,275
2012 3,600
2013 3,957
2014 4,353
See Exhibit 3 for computation
Table 2.2 illustrated the historical demand for dictionary. The proponents
came up with historical demand by multiplying the percentage of the users of the
related products to the total population of business students. The average annual
consumption and the percent of buying were obtained from the survey results.
The survey proved that there is a demand for the product and that trend is
increasing.
Projected Demand
The proponents used the historical demand to determine the projected
demand to have an accurate demand forecasts in the future. They projected the
demand for the future years based on past year consumption. The formula used
was Yc= a + bx, wherein a is equals to 2,546, b is equals to 357 and x is equals
to nth year.
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Table 2.3
Projected Demand
Year Projected Demand
2017 5,402
2018 5,759
2019 6,116
2020 6,473
2021 6,830
Table 2.3 presented the projected demand for dictionary. The formula
used was the straight line statistical method in determining the projected
demand. The table shows that there is an increasing demand for the next five
years.
Supply
Supply is the total amount of goods and services available for purchase
along with the demand. Supply can relate to the amount available at a specified
price. The supply provided by the producers will rise if the price rises because all
firms aim to maximize their profits. It helps to determine how much is the labor,
materials and equipment to purchase for the coming years. It can be used in
obtaining outside financing and in presenting to investors. To specify the
availability of manufacturing Accounting Dictionary, the proponents used the
information obtained from the retailers though survey questionnaires,
observations and interviews.

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Historical Supply
Supply of the product for the retailers of the related product in Batangas
City provided the past years. Through survey questionnaires to retailers, the
proponents were able to get the historical supply of accounting dictionary in
Batangas City. The data were used to determine the projected supply, which
identified the market gap.
Table 2.4
Historical Supply of Related Product
Year Historical Supply
2010 1, 857
2011 2, 043
2012 2, 228
2013 2, 416
2014 2, 600
*under the table 2.4 (Note: See computation at exhibit 5)

Table 2.4 illustrated the historical supply for dictionary is increasing. This
implies that many establishments are manufacturing the related product that is
the possible competitors of the proposed business.
Projected Supply
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To project the supply for the next five years, the proponents made use of
the historical supply as their basis. The data computed will be used to come up
with the market gap in demand and supply analysis.
Table 2.5
Projected Supply
Year Projected Supply
2017 3,159
2018 3,345
2019 3,531
2020 3,717
2021 3,903
Table 2.5 showed the supply for the upcoming years. The formula that
was used is the straight line statistical method to project the supply for the next
years. The table shows an increasing trend in the projected supply of the
product.
Demand and Supply Analysis

It is necessary to analyze the demand and supply of a product to provide
an accurate idea if the products still have a place in the market to cover up
unsatisfied demand. Market gap was used in determining the market share of the
product. This gap is the difference between the projected demand and projected
supply. It helps the proponents to determine the probability and viability of the
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proposed business. Table 2.6 presents the market gap, which refers to the
chance that the products maybe accepted in the market.
Table 2.6
Market Gap
Year Projected Demand Projected Supply Market Gap
2017 5,402 3,159 2,243
2018 5,759 3,345 2,414
2019 6,116 3,531 2,585
2020 6,473 3,717 2,756
2021 6,830 3,903 2,927
The table shows the demand and supply analysis of the product. It is computed
by comparing the projected demand to projected supply. From the table, it can be
viewed that there is an increasing market gap of the product.
Market Share
Market share is the portion or percentage of sales of a particular product
or service in a given region that are controlled by a company. The survey shows
that 81 percent of the total respondents are buying the product. In connection to
this, the business can penetrate the product so that they forecasted a 10 percent
increase in the production capacity annually.
Table 2.7
Market Share
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Year Anticipated Sales Projected Demand Market Share

Volume
2017 1,944 5,402 35.99%
2018 2,333 5,759 40.51%
2019 2,586 6,116 42.28%
2020 2,846 6,473 43.97%
2021 3,131 6,830 45.84%
Table 2.7 presented the market share of the product. It is
determined by dividing the anticipated sales volume by the market gap. The table
shows the decreasing trend of the market share.
SWOT Analysis
Strengths, weaknesses, opportunities and threats also known as SWOT
should be analyzed. These are the key factors for success of a business firm. It
guides the company into what company has to work and not work in the past; it
can also make a company prisoner of a convention and be afraid of innovation,
as the focus is limited to outperforming competition (Go, 2011). Assessments of
these factors in the environment are needed to know if the firm really has
potential for growth and success. A thorough analysis of the firm’s total
environment is necessary. The firm’s internal and external environments are
indicators of its strengths, weaknesses, opportunities and threats. Whether the
firm should be persuaded or not will be based on the result of measuring these
things. Identifying strengths and weaknesses is not enough unless it can identify
active steps to take advantage of the strength and resolve a weakness.

126
Opportunities and threats are those that are awaiting the firm outside. It is
essential for the firm to assess these factors to explicate business opportunities
into profit and to anticipate future problems, hence set earlier measures for
solving such problems.
Strengths
Strength is one of the parts of internal environment of a firm. These are
positive factors, which help the company achieve its key results area. The
strength represents the ability of the firm to introduce a product and to be
recognized by people in accordance to the uniqueness and quality. The following
are the factors that will strengthen the position of JEA Books Company:
New Product-line in the Field of Accounting in the Country. The
company’s product is another set of instruction materials that is useful not only
for business students but also for anyone who seeks a clear guide in confused-
accounting terms. In field of accounting, it was the first dictionary that
incorporated frequently used terminologies. These features have been made to
established competitive edge over other.
Accessibility of Business Location. The business will be located at
Brgy. 10 Noble St., Batangas City. The place is suitable in terms of utilities like
electricity and water. Since the business is nearby in public market, it is
accessible to retailers who are intermediary to distribute the final output directly
to the target market as well as to the suppliers who will supply the needed
materials for production.

127
Long-term use. The business product that serves a manual reference for
anyone who seeks definition of accounting terminologies gives long-lasting
service because it is not perishable.
Weaknesses
Weaknesses are negative factors, which may hinder the attainment of the
firms key results area. Every business has its own weakness that can make it a
decline. In relation to strength a firm’s weakness can be prevented by not
allowing them to destroy the business from operation. The following were
considered the weaknesses of the product:
New Entrant in the Industry. Being a new entrant and not yet known, it
will not be easy for the proponents to build their own name and to acquire
peoples trust and confidence. The proponents will be starting from scratch and
the failure and success of their business will depend on how they manage their
business well.
Lack of Consumers Awareness. Customers may not be aware of the
products’ benefits or advantages or may not even know about the product.
Informative promotional method is badly needed.
Limited Capital. In operating a business, capital is a must to have. It is
the aggregate of the products’ of the industry directly available to support the
production.
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One time Acquisition. The company’s product has a lower percentage of
repeat purchase. It can be acquired at only once and subsequently it can’t be
followed again. This kind of weakness is considered as one of the inherent
features of the product since it is not perishable and tangible.
Opportunities
The external environment looks at opportunities. These are positive
situations, which can enhance the firms’ position in the industry. The following
are the opportunities of the firm:
Increase in Population of Students. The rapid population growth of
students in Batangas City may result in increase of the number of potential
buyers and the demand for the product will also increase. There will be greater
revenue therefore still a chance to earn profit.
Alternative for Thick Accounting books. Since accounting books are of
big size, students are very conscious in carrying those types of books. The
proponents come up with alternative that can aid the action of students with
regards in carrying book. This may also provide and supply similar benefits the
accounting books can give.
Able to Offer Printing Services. Since the firm is only manufacturing
Accounting Dictionary, there are idle times for the machineries and equipments
so that the company is open for printing services.

129
Threats
Threats are negative situations that may dampen its position in the
industry. In conducting a business, there will be threats that may come into their
way. These are the threats that can hindrance the success of the business:
Access to Electronic Generated Dictionary. At present, technological
world provides an access to everyone to anything even books and dictionary.
This can be a big factor that can decrease the trend of sales of books especially
dictionary.
Competition. Every business has own business competition books
published by known author is a big factor for the firm. Many students will prefer
those books because of its reliability on its content.
Increase in Price of Raw Materials. The condition of the country greatly
affects the prices of the raw materials as the status of the economy slow there is
a bigger chance to continuously increase the prices of the goods everywhere.
This is a big problem for the proponents as new entrant and having a low initial
capital.
Marketing Strategies
Marketing entails processes that focus on delivering value and benefits to
customers, not just selling goods, services and/or ideas. It uses communication,
distribution, and pricing strategies. Every business firm should have a well-
defined market program that strengthens its ability to penetrate and maintain its
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position in the market. Marketing strategy contributes a big factor in introducing
the proposed product. This helps the proponents to determine their product
category, the packaging of the product, and the promotion of the product, the
place of distribution and the selling price. Such strategies that must be evaluated
against the company’s objectives, not alternative target markets or alternative
marketing mixes.
The major challenge in engaging in a Handy Compact Accounting
Dictionary is the competition that it will face. The advantage that the proposed
product holds against competition is the price of the product, the essence of the
product, what it can offer to the consumers and the frequency of distribution, in
view of the fact that the proposal focuses only on a definite target market area,
which makes the easy dispersion of the product possible. Objectives and
planning in detail of marketing mix include product, placement, promotion and
pricing.
Product
Product is something that is produced by human being and offered to the
public for the attention, acquisition and consumption to satisfy their needs and
wants. Accordingly, for a product to gain acceptance in the market it should have
long distinctive competent. A Handy Compact Accounting Dictionary is form of
dictionary, which is immediate tools used to provide accounting terms and which
is portable and concisely made. It is a very functional school material. It has been
proven in some research that there was a scarcity in the production of books of
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accounting in the Philippines. And because of these, a simple and little, yet
persistent and compelling idea and plan resembles in the mind of the proponents
for an improved method of low-cost accounting dictionary in production. For
these, JEA Books Company will introduce to the market an Accounting
Dictionary. The proponents decided to call it “Handy Compact Accounting
Dictionary”
Product Size/Category
The proponents will manufacture a product called “Handy Compact
Accounting Dictionary” where the most common terminologies used are in
incorporated in the package and in the price of one. Each product is composed of
more than 1,000 accounting terms, which are commonly used. The proposed
product falls under the category of Accounting and belongs to the industry of
Books.
The proposed product will be manufactured with a length of 18 cm and
width of 12 cm. It contains more than 150 pages having more than 1,000
accounting words.
Brand Name
Brand name is one of the factors that must be taken into consideration
because it gives a trademark to the company. It is anything that distinguishes a
company’s product from other. Careful and strategic construction of brand name
has to be taken place. It should be attractive and outstanding to consumers.

132
The proponent used “Handy Compact Accounting Dictionary” as the brand
name to identify their product. The word “Handy” is used to imply that the
proposed product is portable and easy to carry wherever you go. Another is the
word “Compact”, which is used to denote that the product is constructed
concisely. The “Accounting”, which is the field of study, which the terms came
from and the “Dictionary” is the product name. The concept created a word,
which connotes leaving marks on portions of materials being read for emphasis.
The name is easy to remember and thus may promote repeat purchase. The
brand name may also be used to facilitate some promotional effort of the
company.
Packaging
Packaging pertains to the process of putting the products to well-designed
container for the purposed of protecting and presenting the product at its best.
Today with its marketing significance fully recognized, packaging is a major
factor in gaining distribution and customers.
After considering some factors, the proponents decided to what would be
the packaging of the proposed product. Since, the product is categorized under
book the front and back cover will serve as a packaging of the product. The cover
is made from a heavier stock of paper. At the front cover of the book the word
“Handy Compact” is written on curve shape below of that is the word “Accounting
Dictionary”. Also, the general description and number of words is placed on the
front cover that is left aligned below the title. And on the back cover publishing
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house information is printed on. The front and back cover is laminated to make it
glossy.
Figure 2.1
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Packaging
Pricing
Pricing reflects the market value of the product. Internal and external
factors are considered in pricing the product. Internal considerations include the
cost of materials, cost of labor and other costs allocated to the manufacture of
the product. Meanwhile, market demand and competition form part of the
external factors would be kept into account. The proponents have projected an
initial selling price of Php361.46. The pricing strategy is appropriate to cover up
all related cost and at the same time recognized profit.
Table 2.8
Selling Price of Handy Compact Accounting Dictionary
Direct Materials/Unit 96.19
Labor Cost/Unit 44.44
Factory Overhead/Unit 31.49
Total Cost/Unit 172.13
Mark-up to Retailers 129.09
Selling Price-Retailers 301.22
Mark-up to Consumers 60.24
Selling Price-Consumers 361.46
Table 2.9
Related Price of Competitors
Other Commercial Brand Price/Book

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Pocket Dictionary English-Tagalog Php65.00
Merriam Webster’s Pocket Dictionary 189.00
English-Tagalog Spanish and Tagalog- 200.00

English Dictionary
Diksyunaryong Filipino-ingles 210.00
Bagong Diksyonaryo 225.00
Place of Distribution
Distribution channel consists of the set of people and firms involved the
transfer of title to the product as the product moves from producer to ultimate
consumer or business user. Nature of the market can deeply affect the
management choice of channel, so it should be determined as well as the
channel of distribution.
The proponents will be using the indirect channel of distribution. In here,
the product will flow from the manufacturer down to the retailer and finally to
consumers or end-users. This type of distribution is chosen by the proponents
not only because of simplest marketing scheme but also in order to reduce the
expenses to be incurred and to provide rapid feedback on the behavior of the
product in the market.

136
The place of distribution will be at Batangas City as it surrounds different
Schools and accessibility of the place. The product will be distributed to the
different bookstore/school supplies retail outlets, and the other retailers who are
willing to sell the product.
Customer/End-
Manufacturer Retailers user
Figure 2.2
Channel of Distribution
Promotion
Promotion plays a vital role in establishing the position of a product in the
market. It is used to inform and increase the awareness of the public about the
existence and features of the product. Promotion cannot be ignored in putting a
business owing to the fact that these are the ways of establishing a position of
the product in the market.
The market research established the target client; therefore the promotion
should focus on putting the product ahead of others by accentuating its unique
features and worth.
The promotion held in Batangas City will target on each school/university.

137
Table 2.10
138
Promotion Mix Strategy

What Who When Where How Budget
1. Flyers Two (2) Before the Bay Mall,Citimart, It will be distributed Php 1,000.00
operation outside of the to different
Proponents Schools/ University individuals specially to 500 units
college students
Php 2.00/units
2. Discounts Proponents This will start on JEA Books The purchaser can Php 2,443.20
the day the Company avail 20 percent
proposed products discount relative to 100 units
will introduce. This the product’s selling
will be effective price Php 24.43/units
within two weeks
3. Internet Proponents Before the Facebook This site forms the Php 500
Marketing operation context for firm’s
history, mission and The proponents
products. The will use social
proponents to attract media
customers will do marketing and
well-design site. e-mail
Interesting marketing to
information will be advertise our
updated product.
4. Tarpaulin Proponents A week before the Bay Mall, It will be posted to Php 1,500.00
operation Robinsons, the mentioned places
Citimart, retailers and it will also place 5 units
in Public market at the delivery
and streets where vehicle. Php 300/unit
most people and
vehicle are passing
through
5. Product Proponents On the day the JEA Books This will start with Php 5,000.00
Launching proposed product Company ribbon cutting and
will be introduced introduced the newly
proposed product
6. Book Fair Proponents On school Universities and The product will be Php 5,000.00
seminars in Colleges introduced in
connection to students for them to
accounting be aware of the new
product
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Total Php 15,443.20
Figure 2.3
Tarpaulin
Sample Flyer
Generalization
Market is the lifeblood of the business. It is important to determine who the
target of the business is. The target markets of the business establishment are
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the business students of universities and colleges in the urban and urbanizing
barangays of Batangas City. The historical demand of the product is 2,907 in the
first year of production and 1,857 for the historical supply of related products. The
business weaknesses and threats may affect the market of its product. The
proposed product can be purchased by the retailer for Php361.46. Different
factors affecting the market are then analyzed to have a deeper understanding
on the study. One of these is the effective marketing strategies and programs for
the product. The proponents formulated marketing strategies and programs such
as flyers, tarpaulins, internet marketing, offering discounts, effective product
launching and book fair on school seminars in order for the target market to know
the importance of the product. The business uses indirect channel of distribution
in which the company will distribute to the retailers wherein they will distribute it
to the final consumers.

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Chapter III
TECHNICAL STUDY
The technical aspect of feasibility study presents the manufacturing
process of accounting dictionary. It will mainly discuss the various production
activities and the description of schedule of the manufacturing process of
manufacturing the product. It shows the proficient means of allocating resources
to a particular output in a specific time. The proponents also tackle what type of
location, plant size and layout that is appropriate in operating the business. This
study identifies whether the product could be produce a highest possible quality
level with minimum cost.
The main objective of the technical study is to determine the product
through distinguishing the most suitable manufacturing process and plant
location for proposed business. Specifically it aimed to:
1. To determine the essence of the product and its functions;
2. To determine the process employed by the firm in manufacturing the
product;
3. To determine the equipment, tools and office supplies needed by the firm;
and
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4. To establish the appropriate plant location and plant size layout of the
business
Product
A product is anything produced or obtained as a result of some operations
or work or by generation growth labor, study or skills. It is produced entities and
offered in the market to satisfy human needs and wants. For a product to gain
acceptance in the market, it should have strong distinctive competencies. To be
easily recognized, a good product must have attributes, which will make it winner
and be perceived a better by others.
The Handy Compact Accounting Dictionary is a very functional school
material proven to be a demand in learning. This is a form of dictionary wherein
the accounting terms are compactly made. Accounting terms were lifted from
accounting books authored by Valix, Ballada, Cabrera and Salosagcol. This
product serves as reference to every business student needing for immediate
definition of certain accounting terms.
Product Description
“Accounting Dictionary” is a product suitable for business students. Its
paper has a substance and it is called Newsprint Paper. The ink used only black
color. The cover will be outsourced to external company. This cover is made of
fold cote 15, laminated which give stiffness and provide soft texture. It comes in
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rectangular shape, which measures 18 cm in length, 12 cm in width and a height
of 1.5 cm. At the back cover shows the publishing information and contact
information of the company. It is the best alternative for thick accounting books,
which is inconvenient to carry.
Uses of the product
Handy Compact Accounting Dictionary is a product that would serve as an
alternative for thick accounting books. It aids the students in their daily studies. It
serves as quick reference for students looking for definition of certain accounting
terms. This product eliminates unnecessary time and effort and helps the users
to exercise it in economic way.
Manufacturing Process
Manufacturing process is the part where the proponents discuss how the
product is made from the raw materials. The process of designing a book is
ongoing throughout the stages of production. This is carried out through step-by-
step procedure that will enable the company maximize its resources at a minimal
cost for the operation to function effectively. The process in manufacturing
accounting dictionary is one-month production since it is not perishable and the
repeat purchase percentage is low.
Description of the Process
The different processes in manufacturing Handy Compact Accounting
Dictionary are as follows:

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1. Lay outing and Typesetting
Once the manuscript is finalized, the lay out artist will review, edit and
proofread for errors and final approval. The manuscript is converted into desired
font size and proper style. This process only takes place once and repeat only if
there is changes in the manuscript like changes in accounting standards and
requires two workers.
2. Printing of Manuscripts
Once the manuscript is sent, it will proceed to digital printing. In printing the
manuscript, the sheet to be used is the Newsprint Paper. This will requires two
workers.
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3. Cutting of the Printed Manuscripts into given size
The printed manuscripts will be cut according to given size of the firm. It will
arrange the pages in order and staple it. This will requires two workers.
4. Outsourcing of the Front Cover
The firm will outsource the process of manufacturing the cover of the book.
This cover will require expensive machineries, so that the firm chooses to
outsource its process. This outsourcing process will takes base on the
agreement of the firm and the external company.

146
5. Picking-up of the Finished Product
The worker will pick the finished product at the publishing house.
6. Binding of the printed materials
After the cutting process and manufacturing of front cover, it will proceed to
binding process. It will glue the scored cover and insert the lining into it. This will
requires two workers.
7. Inspection of the Product
The worker will examine the products to ascertain the quality of it and inspect
that no defects and damages are present.
8. Cleaning of the Area

147
148
Lay outing and Typesetting of the Manuscripts
Printing of Manuscripts
Cutting the Printed Manuscripts into specified

size
Outsourcing of the front cover
Picking-up of the Finished product
Binding of the Product
Inspection of the Product
Cleaning of the Area
Figure 3.1
Process Flowchart
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Production Schedule
The production schedule of the firm for the next five years is an important
aspect to be considered in the conduct of business. The firm will adopt the
monthly production since the product has low repeat purchase and it is not
perishable. The production schedule is based on the demand of the product not
exceeding the gap in the market. To compute for the annual productions simply
multiply the monthly production by 12, since there are 12 months in a year.
Table 3.1
Production Schedule (per unit)
Year Monthly Annual
2015 180 2,160
2016 198 2,376
2017 218 2,614
2018 240 2,875
2019 264 3,162
There would be an increase of 10 percent in the production. This is due to
the increasing demand of the product and the increasing population of the
business students. And the increase in the firm’s production indicates the ability
to utilize its capacity and resources and minimize its cost.
Factory Machinery and Equipment
This equipment is needed to carry on the production.

150
Table 3.2
Factory Machinery and Equipment
Description Quantity Unit Cost Total Cost
Desktop 1 Php13,263.15 Php13,263.15
24” Printer 1 16,000.00 16,000.00
Cutter 1 9,350.00 9,350.00
Total Php38,613.15
Source: eBay
The firm acquired the:
Desktop. Computer used in lay outing and typing the manuscripts. It is an
all-in-one Intel computer having 320GB memory space and 8GB Ram.
24” Printer. Machines use to reproduce the documents created in the
desktop computer. It is an HP DesignJet 500 (C7769B) 24" Large-Format Inkjet Printer/Plotter
Cutter. Equipment used in cutting the newsprint paper on their length and
width.
Factory Furniture and Fixtures
The following furniture and fixtures will be purchased for the working area
of the proposed business.
Table 3.3
Factory Furniture and Fixtures
Cabinet 2 Php7,500.00 Php15,000.00

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Ceiling Fan 1 650.00 650.00
Mono Block Chair 2 100.00 200.00
Working Table 2 600.00 1,200.00
Wall Clock 1 100.00 100.00
Total Ph17,150.00
Source: Olx Philippines
Cabinet. This is used to store the materials needed in the production and
finished product. One of which is an open cabinet for storage of papers and
finished product and another is closed for storage of ink, glue and other
materials.
Ceiling Fan. This provides ventilation for the worker to make it convenient
for them to work.
Mono Block Chair. This will be used in the process that can be done
when seating, like in lay outing and typesetting and binding.
Working Table. This is where some equipment will be placed. The other
will be used for stapling and binding.
Factory Tools and Supplies
The following are tools needed in the production. The firm acquired the
following:
Table 3.4
Factory Tools and Supplies

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Stapler (large) 1 Php500.00 Php 500.00
Ruler 1 50.00 50.00
Total Php 550.00

Source: Olx, Maya Bookstore
Stapler. This is used in production after cutting, to arrange the papers in
place before binding.
Ruler. It is used in measuring the length and width of the paper.
Maintenance Supplies
The following supplies are needed for the proper maintenance of the
working area and the main office.
Table 3.5
Maintenance Supplies
Gloves 1 dozen 100.00 Php100.00
Broom 1 150.00 150.00
Dust Pan 2 35.00 70.00
Trash Can 2 50.00 100.00
Rags 5 25.00 125.00
Mop 1 150.00 150.00
Pail 1 65.00 65.00

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Dipper 1 25.00 25.00
Sponge 1 dozen 44.91 44.91
Soap 12 12.00 144.00
Tissue 12 rolls 25.00 300.00
Fire Extinguisher* 1 2,300.00 2,300.00
Total Php3,429.91
Source: Alibaba, Olx, Home Depot, Batangas City Public Market
*one time acquisition
These are the supplies to be purchased to maintain the cleanliness and
orderliness of the working area and office area as presented in Table 3.5.
Office Equipment
These are needed in the office to provide convenient in processing
transactions of the business. These are the equipment will be used in the
company.
Table 3.6
Office Equipment
Computer Set 1 Php13, 263.15 Php13,263.15
Ceiling Fan 1 650.00 650.00
Total Php13,913.15
Source: eBay, Olx
The following are the equipment for the office the company will purchased
for the business as presented in Table 3.6.

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Office Furniture and Fixture
The following furniture and fixtures will be purchased for the office area of
the proposed business.
Table 3.7
Office Furniture and Fixture
Office Table 1 Php2,000.00 Php2,000.00
Office Chair 1 949.00 949.00
Wall Clock 1 100.00 100.00
Filling Cabinet 1 799.00 799.00
Total Php3,848.00
Sources: TODOS AMIGOS & J. Gainza’s Furniture
The following are the furniture and fixture for the office the company will
purchased for the business as presented in Table 3.7.
Office Supplies
These are the supplies that will be used on a regular operation by owners
and employees that are necessary in conducting the proposed business.

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Table 3.8
Office supplies
Ball pen 12 pieces Php300.00 Php300.00
Bond Paper-A4 1 ream 150.00 150.00
Bond Paper-Letter 1 ream 150.00 150.00
Business Receipts 3 pads 47.25 141.75
Calculator* 2 283.86 567.72
Envelope-long 3 4.00 12.00
Envelope-short 3 3.00 9.00
Fastener (plastic) 1 box 50.00 50.00
Folder-long 3 7.00 21.00
Folder-short 3 5.00 15.00
Paper clips 1 box 25.00 25.00
Pencil 1 box 60.00 60.00

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Pencil sharpener 2 26.00 52.00
Puncher* 1 35.00 35.00
Ruler* 1 10.00 10.00
Scissors* 1 35.00 35.00
Stapler* 1 50.00 50.00
Stapler wire 2 boxes 15.00 30.00
Total Php1,713.47
Source: Olx, Maya Bookstore
* onetime acquisition
Direct Materials
The following are raw materials needed in the production. Materials cost
includes direct and indirect materials. The direct materials are the integral part of
the finished product that can be measured and changed directly.

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Table 3.9
Direct Materials
Newsprint Paper 231 ream Php625.00 Php144,375.00
Ink (Black) 26 cartridge 1,359.60 35,349.60
Cost of 2,160 pieces 15.00 32,400.00

Outsourcing -Cover
Freight In 12 months 500.00 6,000.00
Total Php218,124.60
Source: Office Warehouse, eBay, Starmerk
These are the materials that are necessary to construct the products.
Newsprint Paper.Type of paper will use in the production. Its size is
18”x24” wherein it can place three pages of the manuscripts.
Ink. It is used to print the manuscripts. Each piece can accommodate 555
pages. It contain 24 pieces in one cartridge.
Cost of Outsourcing – Cover. Costs charge by the external company to
the firm. This will be used to cover the dictionary.
Indirect Materials
These are the materials acquired by the firm for the packaging and label.
Indirect materials are not directly part of the finished product but are necessary in
the production.
Table 3.10
Indirect Materials
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Glue 17 kgs. Php144.20 Php2,451.40
Stapler wire 25 boxes 50.00 1,250.00
Total Php3,701.40
Source: Alibaba, Olx, eBay
The firm acquired the following:
Glue. It used in binding process.
Lease and Leasehold Improvements
The proponents chose to rent a building that is enough for the operation.
Renovation of the building will be needed for the operation.
Table 3.11 shows the things needed in the improvements to be made in
the area:
Table 3.11
Leasehold Improvements
Paint 2 Php400.00 Php800.00
Paint brush 2 80.00 160.00
Lightings 4 120.00 480.00
Door Lock 3 200.00 600.00
Labor 1 worker 250.00 250.00
Total Php3,460.00
Source: Southbest
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Utilities
Utilities are used in regular operation of the business for their personal
consumption in the production. Their functions provide an adequate outcome that
will be useful for the construction. The electricity, water supply,
telecommunication and Internet connection are consumed to utilize the overall
operation of the firm. In recording the expenses of utilities, there will be a proper
allocation of expenses of office and factory based on the land area they occupy.
Table 3.12
Utilities
Description Monthly Cost Total Cost
Electricity Php955.76 Php11,469.12
Water 400.00 4,800.00
Telecommunication/ Internet 1,124.00 13,488.00

Connection
Total Php29,757.12
Source: Meralco, Batangas City Water District, PLDT Home DSL
Electricity
It is one of the most important factors in a business. It serves as the life of
the production process. This is used or regarded as a source of a power. This is
a necessary factor of the business because it will distribute the electric supply to
operate the equipment used in the construction of the products. It provides a

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power to light every areas of the building and to run electric tools that made the
workers and manager feel comfortable while doing their work.
The company considered the service of Meralco in their electricity and
expects to pay the bill with an average amount of monthly payment of
Php995.76.
Water
The Batangas City Water District will supply the water to the
manufacturing firm and it anticipates having an average monthly consumption of
Php400.00. This is important in the operation as it is used to maintain the
cleanliness of the working area and the employees use it for their personal
consumption.
Telecommunication and Internet Connection
This is a device used by the firm in dealing with the suppliers or buyers. In
this way the manager can transact a business to a person even far from him.
Also, the firm will acquire Internet connection to transact business in the online
world. It will also be used in marketing the product in social media. The company
will use the service of PLDT Home DSL in making calls and Internet connection.
It is expected that the company will pay an average monthly telephone bill and
connection of Php1,124.
Plant Location
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The location of the plant should be strategically planned to ensure the
effectiveness of the business. The feasibility of the business will also depend on
it thus it should be properly done. Having a good business location is one of the
factors that can bring success to the business. Main factors that considered in
establishing the business in Batangas City are the accessibility of environment,
social desirability, existing local government policies and laws and proximity of
the market.
The nature of the product is the factor that ascribes to establish the
business in the road of Poblacion 10, Noble Street Batangas City. The
proponents decided to lease a building and make some improvements for
convenience of business operation. It is also important for the manufacturing
business to have a good location to assure that everything is in better condition
and for workers to perform their duties efficiently.

162
Plant Location
Figure 3.2
Plant Size and Layout

163
The plant layout is important have an effective and efficient operation of
the business. It shows how each department is divided so as to achieve the aims
of providing for employee’s convenience, flexibility of operations, and good
ambiance for customers and workers. Planning the diversification and expansion
of the firms is also considered.
The proponents decided to lease a building, worth of Php2,600 a month
with measurement of 59.5m2. The space is enough to accommodate equipment,
finished product and other office materials of the business. The respective
measurements of each area as follows: lay outing and typesetting has an area of
6.25m2 ; finished goods storage has an area of 7.5m2 ; administrative office has
an area of 11.91m2 and working area and raw materials storage has an are of
12m2. The space allocated for each room is based on its needed area.
164
Figure 3.3
Plant Size and Layout

165
Waste Disposal
Proper disposal of wastes should be given emphasis in the manufacture of
the product. The various waste materials produced by industries maybe
classified as solid, gas or liquid. Although, all of them have combined and
interrelated effects on pollution. The proponents planned to establish waste
management methods. One of this is the elimination of the source of wastes.
This approach will prohibit the workers in dumping waste materials anywhere.
Another is recovery of waste products. Waste materials that are reusable will not
be dump to lessen the wastes yet minimize its costs. Solid wastes such as plastic
bag containers shall be stuffed properly in the trashcan, and picked up every day
by the garbage collector of the city. Liquid wastes shall be disposed through the
plant’s drainage system.
Direct Labor Requirements
Human labor is one of the most important resources of the firm in the
production. Manpower needed in the manufacturing process refers to the direct
labor of the product.
The firm will hire two workers. They must have the necessary effort, skills
and knowledge in the field of work to be efficient and effective in the work and
attitude and interest in their work. He/she must be competent to ensure the
quality of the product. They will undergo briefing and training regarding the duties
to be assigned to him. They will work for 8 hours per day, 20 days a month and
240 days per year. They will receive a salary of Php6,000 a month each.
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Generalization
Product technicalities are important in manufacturing the product.
Accounting Dictionary is the alternative for the thick accounting books that could
be convenient for the business students. It is very useful because it serves a
quick reference in their lesson. The business will manufacture the Accounting
Dictionary and outsource the cover of the dictionary to external companies. A
company may be able to grow at a faster pace and it will be less constrained by
large capital expenditures for people or equipment that may take years to
amortize, may become outdated or turn out to be a poor match for the company
overtime. The firm will hire two workers. The working days of the workers is for
20 days a month and 240 days per year. The firm will establish the business at
Poblacion 10, Noble Street Batangas City. They will lease the building with an
area of 59.5m2.
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Chapter IV
MANAGEMENT STUDY
The management study discusses the form of business appropriate and
corresponds to the operation of the firm, capital needed to run the business as
well as amount of sharing of each partners and suitable organizational structure.
The manpower necessitates and its job specification and description,
compensation and the most powerful in management are the organizational
policies are also talk about in this part. And lastly, maneuvering compliance on
the legal requirements to operates the business lawful.

The main objective of the study is to determine the management feasibility
of the product by distinguishing the suitable nature of the business, the company
policies and legal requirements for business to operate. Specifically, it attempts
to discuss the following objectives:
1. To determine the appropriate form of the business organization and
initial capitalization needed;
2. To develop an organizational structure that will be suitable for the
business and company policies and regulations that will ensure the
effectiveness and efficiency of operations;

168
3. To set the requirements and qualifications for the employees/workers
based on their respective duties and responsibilities and identify the
compensation plan of the company; and
4. To discuss the legal requirements that the business must adhere with
Form of the Business
Choosing the right form for business may be important to its future
success. This can have significant implications on personal risk in business and
to the potential for financial returns. The business will operate under the name
JEA Books Company and will be organized under the contract of partnership.
Partnership is the form of the business by the proponents. Article 17676
stated the definition of partnership. By the contract of partnership two or more
persons bind themselves to contribute money, property, or industry to a common
fund, with the intention of dividing profits among themselves. Two or more
persons may also form a partnership for the exercise of a profession (De Leon,
2011). It is sorted through different factors such as the relatively informal
agreement easy and inexpensive to form, the applicability to the number of
persons involved in its formation and its practicality regarding the availability of
limited resources, the personal relationship that exists among partners will
enable them to work easily with each other and it is also easier and less costly to
organize or manage.
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The firm will adopt the general partnership. In this kind of partnership,
each partner is considered as General Partner who will be liable to the extent of
his separate property of partnership debts. The partners will merge their
knowledge, skills, experiences and resources in carrying out the business (De
Leon, 2011).
Capitalization
There is always some risk in starting up and maintaining a business, but
careful assessment of capital can help the firm decide if moving forward with the
business plan is a good idea other than the viability of the product in the market
to be introduced. Capitalization is defined as total value of funds contributed to
business by the owners. A sufficient amount of capital is essential for the
business in which may be directly employed to support the pre-operating and
operating expenses that will be incurred by the firm. It should also consider how
the initial capital is obtained.
The partner will contribute equally based on the principle that it is just and
reasonable and is consistent with the rule that partners are deemed to have
equal rights and obligations. (De Leon, 2013) Before the preliminary operation of
the business, each partner is to contribute an amount of Php115, 000.00 to act in
accordance with the capital requirements. The equal contribution is based from
the agreement made of the partners. They have such contributions since it is the
easiest way to distribute the profit and loss of the business. The total amount of
contribution is considered as their capital. It will be used for the start-up cost of
the project such as the expenditures for equipment, furniture and fixtures,
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supplies, raw materials, leasehold improvements, taxes, fees and other
expenses.
The sources of the capital contributions of each partner are from their
personal savings. This savings are not enough to have an equal collection for
initial capital of the business. In fact, families and relatives also provide financial
assistance to have sufficient amount for their agreed contributions. The input of
the partners will be as follows:
Table 4.1
Partners’ Contribution
Name of the Partner Amount
Del Mundo, Angelica M. Php115,000.00
Perez, Ezra M. 115,000.00
Total Php230,000.00
This table shown the equal contributions by the partners that will used for the
operations of the business.
Organizational Structure
An organizational structure is a representation of a company’s
arrangement of personnel and their respective reporting relationships. It is the
framework of carrying business activities and will determine what responsibilities
are assigned to each member of organization (Bernabe and Mison, 2008). It
identifies every member position in the company to clearly express the chain of
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command existing within the organization. It is a hierarchy of functions, which
specifies the allocation of duties to govern, control and coordinate the proper and
continuous execution of work and operation of business. It also determined how
information is appropriately disseminated between different levels of
management. Structure defines tasks and responsibilities, work roles and
relationships and channels of communication.
Line structure of management will be employed because its simplicity fits
for a small business with few employees. In this type of structure, it provides
guidance and clarity on specific issues like the managerial authority. The
manager sits directly in the chain of command in the business hierarchy, and is
responsible for overseeing the worker.
General
Manager
Worker I Worker II
Figure 4.1
Organizational Structure
172
Figure 4.1 showed the organizational structure of JEA Books Company.
The business composed of General Manager and Worker only. The General
Manager is one of the partners who are accountable in managing the business
and where the worker will officially report thereto in different situations. The
worker that will be employed is qualified on the specifications and qualifications
specified by the business. Good relationship between the general manager and
worker will lead the business to expand and become a success.
Manpower Requirements
Human resource is the most important and vital asset of an organization
as the productivity of all other resources depends upon people (Chandramohan,
2008). Human capital can be therefore, defined as an input in employees, the
ability to perform a task with the aim of producing economic value. Manpower
refers to the total supply of personnel available or engaged for a specific job or
task. It plays a pivotal role in implementation of different regulations, processes
and activities. It also has a relevant involvement in a successful company
performance because it directly affects every aspect of its operation.
Therefore, proper manpower planning and hiring methods based on
approved set of qualifications must be done to provide the firm with competent
individuals for the achievement of its goals. Staffing is an important function of
management that requires careful selection of people who are qualified for a
specific job. It also compasses the analysis and assessment of other significant
factors to attain the desired result.

173
Job specification
Job specification is a statement which tells minimum acceptable human
qualities which helps to perform a job. The company requires a written statement
of educational qualifications, specific qualities, level of experience,
communications skills and required to perform a work for each employee to be
hired. It is deemed important to possess the works with quality.
General Manager
 Must be a bona fide partner in the business
 Must be a degree holder of any course related to business
 Must have training or certification related for the job
 Must be proficient in handling business transactions and affairs
 Must be able to administer, lead and work efficiently with others
 Must be physically fit, with good personality
 Must be objective when it comes to arguing issues in the business
 Must have effective problem- solving and decision- making skills
 Must have a strong interpersonal communication skill both written and
verbal
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 Must be familiar with the social and political environment in the region
 Must be able to administer, lead and work efficiently with others
 Must able to cope with traumatic situations
 Must have a go getter attitude
Workers
 Must have knowledge in Information Technology
 Must have an experience in printing or related experience
 Must not be dependent on her job since he/she is not a full time worker
 Must have a strong communication skills
 Must be excellent in grammar and spelling skills
 Must have good IT skills, including knowledge of word processing and
design programs
 Must have leadership skills and the ability to be diplomatic and fair
 Must be physically fit, diligent and responsible
Job Description
Job description is a written statement of the key features of a job along
with the activities required to perform it effectively (BuBrin, 2009). It generally

175
includes duties, purpose, responsibilities, scope, and working conditions of a job
along with job’s title and the name or designation of the person to whom the
employee reports.
General Manager
 Must be College graduate or equivalent experience.
 Must maintain professional and technical knowledge
 Must demonstrate ability to work in a proactively diverse and inclusive
organization
 Must be excellent, with proven interpersonal, verbal and written
communications skills.
 Must be ensured with the consistency of outsourcing and business
objectives
 Must routinely evaluate the portfolio of outsourcing methodologies and
process
 Can do research and write discussion papers, analysis documents
and proposals as needed to assist the business in determining and
meeting its long and short-term goals
 Must demonstrate ability to multi - task and work in a fast - paced office
setting
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 Must maintain quality service by establishing and obeying business
standards
 Must build the company image by collaborating with customers,
government and worker; enforcing ethical business practice
 Must increase management’s effectiveness by selecting, orienting,
training, coaching, counseling and disciplining worker
 Must know how to coordinate and communicate values, strategies and
objectives
 Must know how to establish and accomplish business objectives
Worker
 Must be responsible to take instructions from the high position (general
manager)
 Must record significant data about his/her work done
 Must ensure conformance to specification
 Must inspect properly with diligence the product to ensure high quality
 Must keep her/his eye for detail and very accurate in their work
 Must have analytical skills
 Must be able to cope with traumatic situations

177
 Must be flexible, on time and loyal
 Must maintain quality service by establishing and enforcing organizations
standards
Compensation
Compensation is considered as the payment of money given to the
employees by the company for the services rendered. It is a vital factor on how
the management easily motivates all its employees to work efficiently and
effectively to attain the business’ goals. It may vary depending on an individual’s
reputation or position in the company, kind of work, level of performance, rate
provided by the firm’s financial condition, practices in the industry and locality,
regulations imposed by the government and other factors.
Table 4.2
Compensation Schedule
Position Daily Monthly Annually
Manager Php350.00 Php7,000.00 Php84,000.00
Worker I 200.00 4,000.00 48,000.00
Worker II 200.00 4,000.00 48,000.00
Total 180,000.00
Table 4.2 showed the compensation schedule of the enterprise. The
salary will be given every 15th and 30th day of the month. The worker will also
receive 13th month pay. The firm will provide fringe benefits such as Social
Security System and PhilHealth, to be deducted from the salaries.

178
Organizational Policies
Setting policies identify the way a manufacturing business operates in a
daily basis. Establishing organizational policies should provide employee and
worker with definitive solutions to problems. Policies are guides to action,
organized by executives in anticipation of questions or situations that keep on
recurring which could be met and resolved through the use of guidelines. Policies
are enforced to ensure a normal business operation under diverse
circumstances. These are standards and procedures set by management as
quick responses to expected events. These provide clear instructions on what
and how things should be done. If strictly and continuously followed, these will
help maintain and improve internal control and performance. These could also
enable the organization to solve major conflicts and attain its objectives.
Policies for Worker/Employee
1. The partners shall have regular meetings once a month
2. The partners shall be allowed to withdraw an amount not exceeding 50
percent of their respective beginning capital balances after the first three
months of operation
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3. Regular employee will work for eight hours a day (8:00am-5:00pm) from
Monday to Friday. They will be given 15-minute break in the morning and
afternoon, and one-hour lunch break.
4. Employee is required to submit necessary information how their personal
profiles in the company.
5. Employee must wear proper attire:
 Manager - smart casual attire
6. The business organization the “No Smoking” Policy within the area
because of its high risk of fire. Workers are required to wear masks as a
protective gear.
7. Employee will be paid every 15th and 30th day of the month. Work done
on regular holidays and special holiday will be compensated by the
prevailing rate in the industry. Benefits will also be granted.
Policies for Retailers
1. The business will make agreements between the retailers and business.
2. The deal between the two parties should be clear enough to avoid
conflict
3. Orders, quotations and inquiries must be done three to five days before
delivery.
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4. Warranty and policy are indicated in the receipts and invoices for
additional information. Like, cancellation of orders must be done within
two days after ordering.
5. The ordered products will be delivered in good condition, at the right
amount and in a stipulated period.
6. If the payment is agreed on installment basis, a down payment must at
least 80 percent of the total purchased price. The remaining will be
subjected to applicable interest. Default on payment of any installment
or any interest, makes the whole amount due.
7. All transactions must be in writing and signed by both parties.
Policies for External Publishing House
1. The General Manager and External Publishing House must sign into
contract they agreed upon. Since signing contract is considered as a start
of business relationship.
2. The agreement must clearly define the scope of the outsourced
operations beforehand, to have a good idea what exactly the service
provide is doing, and what is left to the business. It should delineate the
full extent of the services that are to be delivered and to which the
external company will be responsible.

181
3. Orders will be placed within reasonable time before delivery and the
items must be delivered on the agreed date and according to the
specifications of the firm.
4. The manager must be informed in case delay of delivery occurs.
5. Receipt should be given upon purchase and payment.
6. The firm will promptly pay all debts and take all necessary discounts
offered. Good relationship will be established with its suppliers.
7. Putting part of business in someone else’s hands is complicated, so the
external company should not break the trust and be objective and not
subjective.
Legal Requirements
JEA Books Company ensures that the company upholds a positive image
and builds consumer’s trusts by compliance with legal requirements imposed by
the government. These requirements are as follows:
I. Application for Copyright
Copyright is important to creators like writers and artist as well as those
such as publisher that own rights, as it provides them with a legal right of
ownership of the work that they introduce. The Partners apply for the copyright of
their work to have some control over how it is used, which is not only fair but also
182
necessary for them to be legalized and avoid conflict in claiming the work. The
requirements for application are as follows:
1. The application form shall be accomplished in duplicate, typewritten, and the
affidavit at the back should be duly notarized.
2. Application shall be accompanied by two copies of the work as deposit, two
hundred pesos (PhP200.00) as registration fee, and two sets of ten pesos of
documentary stamps.
3. If the work applied for registration is an original ornamental design (classification
H), it should be accompanied by a technical description of the design.
4. If the work applied for registration is published work, two printed copies with
copyright notice printed in front or at the back of the title page if it is a book
and on any clear space thereof if non-book material, shall accompany the
application. The copyright notice shall be in the form, Philippine Copyright
20___ (year of publication) by ____________________ (copyright owner).
No. Stating the specific date when the work is finished and
likewise No should fill up 8 of the application. 9 are filled up to indicate when
the work is published.
A “published work” for purposes of registration means that the work has
been disseminated to the public prior to its registration with the Copyright
Office.
5. If the work for registration is unpublished work, two copies of the manuscript or
183
photocopies of the work without the copyright notice shall accompany the
application.
6. Unpublished work for purposes of registration means that the work has not been
disseminated to the public at the time of registration.
7. If the applicant is non-resident foreigner, he should appoint a local authorized
agent by a Special Power of Attorney to prosecute copyright application for and
his behalf with this office.
8. If a third party is claiming copyright ownership of the work, a duly notarized
Waiver of Copyright Ownership or Affidavit of Joint Ownership executed by the
Author in favor of the third party making the claim shall be attached to the
application form.
9. If the applicant is a proprietorship or a corporation, a photocopy of the Certificate
of Business name, DTI or SEC registration (first page only) shall be attached to
the application.
10. If copyright certificate/s will be sent through mail, the applicant must attach a
mailing envelope and the corresponding mailing stamps to the filled-up
application forms.
II. Articles of Partnership
A partnership may be constituted orally or in writing. Partnership
agreements are embodied in the Articles of Partnership( Ballada, 2013).

184
The Articles of Partnership must be registered in SEC. The Article of
Partnership has he following essential provisions:
 The partnership name, nature, purpose and location
 The names, citizenship and the duration of partnership
 The date of formation and the duration of partnership
 The capital contribution of each partner, the procedure of valuing non
cash investment, treatment of excess contribution and the penalties for a
partner’s failure to invest and maintain the agreed capital
 The rights and duties of each partner
 The accounting period to be adopted, the nature of accounting records,
financial statements an audits by independent public accountant
 The method of sharing the net income/loss, frequency of income
measurement and distribution including the provision for the recognition
of the differences in contribution
 The drawings and charges allowed for partners
III. Registration of the Partnership to Securities and Exchange Commission
When the partnership capital is Php3, 000 or more, in money or property,
the public instrument must be recorded with the Securities and Exchange
Commission (SEC). Even if it not registered, the partnership having a capital of

185
Php3, 000 or more is still valid and therefore has legal personality. Here are the
basic steps to follow:
1. Have the proposed business name verified in the verification unit of SEC;
2. Submit the following documents:
 Articles of Partnership
 Verification slip for the Business Name
 Written undertaking to change business name if required
 Tax Identification Number of each partner and/or that of the
partnership
 Registration data sheet for partnership duly accomplished in six
copies
 Other documents that may be required;
3. Pay the registration/filing and miscellaneous fees; and
4. Forward documents to SEC Commissioner for the signature
The purpose of the registration is to set “a condition for the issuance of the
licenses to engage in business or trade. In this way, the tax liabilities a big
partnership cannot be evaded, and the public can also determine more
accurately their membership and capital before dealing with them”
(Ballada, 2013).
186
IV. Acquisition of Barangay Clearance
The proposed business must secure barangay clearance where it is to be
located, to become considered legal or legitimate.
V. Application of Mayor’s Permit
Application for Mayor’s Permit shall be done at City Mayor’s Office
specifically in the Business Permits and Licenses Division. The requirements that
should be completed are the following:
 Location sketch of the proposed business;
 Sworn capital investment of the partners;
 Certificate attesting to the tax or tax-free exemption, if the business is exempted
from payment of fee or tax;
 Certificate from the officer in charge of Zoning Division, stating that the
proposed business conforms to the zoning rules and regulations;
 Tax Clearance, certifying that all tax obligations has been paid;
 Presentation of the Community Tax Certificate and Receipts for the payment of
professional tax fee, occupation fee, as case maybe, the applicant is liable;
thereof
 Contract of Lease if the building is rented; and
 Barangay Clearance
187
VI. Confirmation of the Application with the following Offices for its
Inspection, Endorsement, Assessment and Signing
 City Planning and Development Office
 City Engineer’s Office
 City Treasurer’s Office
 City Health Office
VII. Payment of all necessary fees and taxes at the City Treasurer’s Office
 Legal Fees
 Environmental Protection Fee
 Fire Inspection Fee
 Sanitary Fee
VIII. Registration to Bureau of Internal Revenue
Registration at Bureau of Internal Revenue is the last part of registration
process. This is done, for the systematic payment of tax, for registering books of
accounts and business forms to be used by the partnership.
Table 4.3
Schedule of Taxes and Licenses

188
Copyright Registration 250.00
VAT Registration 500.00
BIR Registration 500.00
SEC Registration 510.00
BMBE Registration 1,000.00
DTI Registration 500.00
Mayor's Permit 1,000.00
Zoning Fee 1,500.00
Certification Fee 150.00
Fire Inspection Fee 300.00
Sanitary Permit 250.00
Sanitary Inspection Fee 1,000.00
Business Tax 135.00
Clearance Fee 150.00
Environmental Protection 2,000.00
Inspection and Monitoring Fee 200.00
Total Taxes and Licenses Fees 9,945.00
This table shown the legal requirements and it cost imposed by the government
to be applied by the business to operate legal.
Generalization
JEA Books Company commenced the business in the form of General
Partnership. Such type of business ownership is relatively easy to form, subject to fewer
regulations and suitable for the partner’s ability. The total initial capitalization needed
189
for the formation of the business is Php230,000.00 and will be contributed equally by
the partners. The collected capital is used to finance the operation of the business and
compensate the expenses incurred by the firm. The management will adopt the line
structure in which the partnership requires general manager and two workers. Line
structure management makes the transactions and decision-making quickly. The general
manager has direct control over the worker. The workers should be qualified with the
job specifications and descriptions created by the business. Complying in organizational
policies by the worker/employee will lead to excellent managing of the manpower of
the company. And company act in with accordance of legal requirements imposed by
the government. In addition, seeing that the business will outsource some process of
their product it gives free management time, that enables the companies to focus on
core competencies while not being concerned about outsourced outline activities.
JEA Books Company commenced the business in the form of General Partnership. Such
type of business ownership is relatively easy to form, subject to fewer regulations and
suitable for the partner’s ability. The total initial capitalization needed for the formation
of the business is Php230,000.00 and will be contributed equally by the partners. The
collected capital is used to finance the operation of the business and compensate the
expenses incurred by the firm. The management will adopt the line structure in which
the partnership requires general manager and two workers. Line structure management
makes the transactions and decision-making quickly. The general manager has direct
control over the worker. The workers should be qualified with the job specifications and
descriptions created by the business. Complying in organizational policies by the

190
worker/employee will lead to excellent managing of the manpower of the company.
And company act in with accordance of legal requirements imposed by the government.
In addition, seeing that the business will outsource some process of their product it
gives free management time, that enables the companies to focus on core
competencies while not being concerned about outsourced outline activities.

191
Chapter V
FINANCIAL STUDY
The financial aspect of the feasibility is the most significant in study that
should be considered since it determines and elaborates the viability of the
business. It clarifies about the efficient utilization of available resources to gain
profit. This study includes the computation of the total project cost, initial capital
requirements, sources of financing, financial assumptions, preparation of the
financial statements covering five years of business operation and financial
analysis.
The main objective of the study is to determine the progress of the project
in terms of its initial status and condition. Specifically, it attempts to discuss the
following:
1. To determine the total initial project cost, the required total contribution in
creating the proposed business after considering major expenditures as
well as, sources of funds;
2. To figure the applicable and appropriate major financial assumptions to
project and analyze the financial statements;
3. To present the financial condition and performance of the business
through a set of projected financial statements; and
4. To identify the financial capability of the business using financial ratios,
break-even analysis and payback period.

192
Total Project Cost
The project cost includes the acquisition of fixed assets and operating
expenses that are expected to be incurred for the period of at least two months.
Table 5.1 shows the total project cost of JEA Books Company for the
period of two months.

193
Table 5.1
Total Project Cost
Fixed Asset Requirements
Factory Machinery and Equipment 38,613.15
Factory Furniture and Fixtures 17,150.00
Office Equipment 13,913.15
Office Furniture and Fixture 3,848.00
Leasehold Improvements 3,460.00
Total Fixed Assets 76,984.30
Working Capital Requirements for Two Months
Direct Materials 35,354.10
Freight In 1,000.00
Direct Labor 16,000.00
Factory Overhead
Indirect Materials 616.90
Factory Tools and Supplies 550.00
Rent Expense-Factory 3,640.00
Utilities Expense-Factory 3,794.64
Maintenance Expense-Factory 2,400.94
SSS Contribution-Worker 581.20
PhilHealth Contribution 400.00
Total Working Capital 64,337.78
Administrative Expense
Salary Expense-Manager 14,000.00
Rent Expense-Office 1,560.00
Utilities Expense-Office 1,264.88

194
Maintenance Expense-Office 2,057.95
Taxes and Licenses 9,945.00
Office Supplies 1,713.47
Total Administrative Expense 30,541.30
Selling Expense
Delivery Expense 700.00
Pre-Operating Expense
Advertising Expense 30,886.40
Rent Deposit 2,600.00
Total Pre-Operating Expense 33,486.40
Cash Requirement 206,049.78
Cash for Contingencies 23,950.22
Total Project Cost 230,000.00
The table includes the total manufacturing cost and pre-operating
expenses for two months. It is important to know the amount of total project cost
to assess and know if the contributed capital of the partners is sufficient to
shoulder the two months of operations and cash contingencies.
Capital Requirements
The computed project cost for the first two months of operating the
business is Php230,000.00 in which it will be used as basis for the initial
contribution of the partners in the firm. Each partner will contribute equally for his
or her initial investment.
Sources of Financing
195
The partners will shoulder the initial capital with their own and with the
help of their relatives. In case the initial investment is inadequate to cover all the
necessary costs, the partners will generate funds by making loans on lending
institutions.
Financial Assumptions
In the formulation of the financial projections, financial assumptions play a
major role for the foundation in estimating the future expenditures and resources
of the project. The following are the financial assumptions used:
1. Inflation Rate
Different prices, costs and expenses would increase based on the average
inflation rate of 2.05%⅘ based on the National Statistics Office.
2. Working Days
The worker will only work for eight hours per day, 20 days a month and 240 days
a year.
3. Accounting Reporting Period
A calendar year of business starting January 1, 2017 would be implemented.
4. Capacity
 Production for the first year of operation would be 2,160 units
 There will be a 10% increase on production annually
5. Purchases
 The volume of purchases either direct or indirect materials would

196
increase proportionately with the increase in the production
 Purchase shall be taken up at the start of operations. It shall be taken up
at a rate of 2%
 The payment for purchases of direct materials for the first and second
year of operations will be 80% cash and 20% on credit
 Indirect Materials purchase is on cash basis only
 100% of the remaining balance of the last year’s credit and 60% of the
credit for the current year would be paid every year end
 Freight for the purchases is shouldered by the firm
6. Sales
 Mark-up to retailers would be 75% and 20% mark-up is suggested to
consumers
 Cash sales would be 80% of gross sales and credit sales would be 20% of
gross sales
 The collection related to credit sales would be 100% of the last year’s
credit sales and 60% of the current year’s credit sales.
 Provision for doubtful accounts would be 2.5% of the total receivable.
There would be no write-off of receivables.
 Sales returns and allowances would be 1% of gross sales.

197
 Sales discounts shall be taken up a rate of 2% of cash sales and 1% of
credit sales
7. Inventory
 In valuing the inventory, FIFO Method would be used
 There would be no direct and indirect materials ending inventory
 Finished goods ending inventory shall be maintained at 10% of the good
available for sale
 Allowance for defects would be 0.05% of the processed units used
8. Labor
 There would be two workers in production
 An amount of Php200 per day would be given to the worker
 There would be no withholding taxes
 Salary increase would be by 5% every year. The employees will be
entitled to benefits such s 13th month pay, SSS and PhilHealth
9. Rent Expense
 Rent expense is assumed to Php2,600.00 per month and assumed to be
fixed throughout the year and the following years
 Rent expense will be allocated to factory and office, 70% and 30%
respectively
198
10. Utilities Expense
Utilities expense will be allocated to factory and office, 75% and
25% respectively
11. Maintenance Expense
Maintenance expense will allocated to factory and office, 70% and
30% respectively
12. Property, Plant and Equipment
 Through cash, the equipments and machineries will be acquired
 For the first five years of operation there would be no additional
purchase of equipment, machineries and furniture and fixtures
 The equipment will have five years useful life and furniture and fixture
will have ten years useful life with no residual value
 In depreciation, the straight line method would be used
13. Leasehold Improvements
Leasehold improvements would have five years useful life without
residual value and would be depreciated using straight-line method.
14. Delivery expense
Distribution of finished goods to retailers would be monthly. The
service vehicle to be used for delivery of the product will be donated by
one of the partners
15. Advertising Expense
The estimated decrease in advertising expense is 20%

199
16. Partner’s Equity
 The partnership is composed of two general partners
 To start the business the partners will contribute Php115,000 each for a
total of Php230,000
 Profits and losses are shared equally by the partners based on the
agreement stipulated by the partners
 The partners would not be allowed to withdraw on the first three months
of operation. After that period, provision of 50% on their respective share
in operating income
Financial Statements
The financial statements must be prepared to provide information about
the position of the company. It is also basic necessity in a business. Its objective
is to provide information about the financial position and changes in the financial
status of the entity. The policies and strategies of the management and insights
into the firm as future performance are also discuss in this part.
Financial statements are the means by which the information accumulated
and processed in financial accounting is periodically communicated to the users.
Without accounting information embodied in the financial statements users may
be able to arrive at sound economic decisions.
The basic financial statements which will be presented in this chapter are; the
Projected Income Statement, Projected Statement of Cash Flows, Projected

200
Changes in Partner’s Equity and Projected Statement of Financial Position.
Statement of Financial Performance
Income statement is one of the many pieces of financial statement
package. It is formal statement showing the performance of the entity, primarily
measured in terms of level of income earned through the effective and efficient
utilization of resources.
Statement of Cash Flows
Statement of cash flows is the basic component on the financial statement
summarizing the operating, investing and financing activities of the enterprise. It
provides information about the cash receipts and cash payments of the business
during the period.
Statement of Changes in Equity
Statement of changes in partner’s equity as it describes the activities that
lead to a change in the partner’s net worth over a number of payments between
two or more balance sheet.
Statement of Financial Position
Balance Sheet is formal statement showing financial position and
condition of an enterprise in a particular date. It presents the three elements of
position namely; assets, liabilities and equity. It evaluates the entity liquidity, its
financial flexibility and its ability to generate profit. It also refers to the capacity of
the business to generate profit to adapt upon the changes on its environment
201
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JEA Books Company
Projected Income Statement
For the Years Ended December 31, 2017-2021
Particulars Note 2017 2018 2019 2020 2021
Net Sales 1 569,167.81 676,137. 743,136. 812,758. 889,173.

19 89 55 85
Less: Cost of 2 340,013.06 403,881. 443,476. 484,490. 529,523.

Goods Sold 45 21 97 15
Gross Profit 229,154.75 272,255. 299,660. 328,267. 359,650.

74 67 58 70
Less: Operating
Expense
Selling 3 19,643.20 10,817.3 9,665.87 8,751.81 8,030.30

Expense 0
3 117,868.50 119,459. 125,612. 132,133. 139,047.

Administrative 34 33 47 84
Expense
Total Operating 137,511.70 130,276. 135,278. 140,885. 147,078.

Expenses 64 20 28 14
Net Income 91,643.06 141,979. 164,382. 187,382. 212,572.

10 47 30 56
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JEA Books Company
Projected Statement of Changes in Partners Equity
Particulars 2017 2018 2019 2020 2021
Capital balance beginning

115,000.0 137,910.7 173,405.5 214,501.1 261,346.7
0 6 4 6 3
Add: Share in Operating

Income 45,821.53 70,989.55 82,191.23 93,691.15 106,286.2
8
Less: Withdrawal
(22,910.7 (35,494.7 (41,095.6 (46,845.5 (53,143.1
6) 8) 2) 7) 4)
Del Mundo, Capital

137,910.7 173,405.5 214,501.1 261,346.7 314,489.8
6 4 6 3 7
Capital balance beginning

115,000.0 137,910.7 173,405.5 214,501.1 261,346.7
0 6 4 6 3
Add: Share in Operating

Income 45,821.53 70,989.55 82,191.23 93,691.15 106,286.2
8
Less: Withdrawal
(22,910.7 (35,494.7 (41,095.6 (46,845.5 (53,143.1
6) 8) 2) 7) 4)
Perez, Capital
137,910.7 173,405.5 214,501.1 261,346.7 314,489.8
6 4 6 3 7
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JEA Books Company
Projected Statement Of Cash Flows
Particulars 2017 2018 2019 2020 2021
Cash Flow from Operating Act
Annual Cash Return (Net

Income +Dep.) 104,940. 155,276. 177,679. 200,679. 225,869.
12 16 53 36 62
Add(Deduct)
Increase in Accounts
Receivable (45,674. (8,583.2 (5,376.5 (5,586.9 (6,132.0
68) 4) 2) 2) 9)
Increase in Inventory
(37,779. (7,096.4 (4,399.4 (4,557.2 (5,003.5
23) 9) 2) 0) 8)
Increase in Accounts Payable

16,969.9 2,079.67 2,334.53 2,620.63 2,941.79
7
Net Cash Provided (used) by

Operating 38,456.1 141,676. 170,238. 193,155. 217,675.
7 10 13 87 74
Cash Flow from Investing

Activity
Acquisition of Fixed Asset 0 0 0 0

76,984.3
0
Rent Deposit 2,600.00 0 0 0 0
Net Cash Used by Investing - - - -

(79,584.
30)
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Cash Flow from Financing
Initial Investment
230,000.
00
Withdrawal
(45,821. (70,989. (82,191. (93,691. (106,286.
53) 55) 23) 15) 28)
Net Cash Provided by

Financing 184,178. (70,989. (82,191. (93,691. (106,286.
47 55) 23) 15) 28)
Net Increase in Cash

143,050. 70,686.5 88,046.8 99,464.7 111,389.4
34 5 9 2 6
Cash Balance Beg -

85,830.2 93,910.0 109,174. 125,183.3
1 6 17 3
Cash Balance Ending

143,050. 156,516. 181,956. 208,638. 236,572.8
34 76 95 89 0
Cash Allocated to Plant

Expansion Fund 57,220.1 62,606.7 72,782.7 83,455.5 94,629.12
4 0 8 6
Cash, Unrestricted for use

85,830.2 93,910.0 109,174. 125,183. 141,943.6
1 6 17 33 8
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JEA Books Company
Projected Statement of Financial Position
Particulars Not 2017 2018 2019 2020 2021

e
ASSETS
Currents Assets
Cash
85,830.2 93,910.0 109,174. 125,183. 141,943.
1 6 17 33 68
Accounts 4
Receivable, Net 45,674.6 54,257.9 59,634.4 65,221.3 71,353.4
8 2 4 7 6
Inventory 5
37,779.2 44,875.7 49,275.1 53,832.3 58,835.9
3 2 3 3 1
Total Current Assets

169,284. 193,043. 218,083. 244,237. 272,133.
12 69 74 03 04
Non Current Assets
Property, Plant and 6

Equip. 63,687.2 50,390.1 37,093.1 23,796.0 10,499.0
4 8 2 6 0
Plant Expansion
Fund 57,220.1 119,826. 192,609. 276,065. 370,694.
4 84 62 17 29
Rent Deposit 2,600.00 2,600.00 2,600.00 2,600.00 2,600.00
Total Non Current

Assets 123,507. 172,817. 232,302. 302,461. 383,793.
38 02 74 23 29
TOTAL ASSETS
292,791. 365,860. 450,386. 546,698. 655,926.
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50 72 48 26 33
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LIABILITIES &PARTNER'S
EQUITY
Current Liabilities
Accounts Payable 7
16,969.9 19,049.6 21,384.1 24,004.8 26,946.5
7 4 7 0 9
Partner's Equity
Del Mundo, Capital

137,910. 173,405. 214,501. 261,346. 314,489.
76 54 16 73 87
Perez, Capital
137,910. 173,405. 214,501. 261,346. 314,489.
76 54 16 73 87
Total Partner's Equity

275,821. 346,811. 429,002. 522,693. 628,979.
53 08 31 46 74
TOTAL LIABILITIES &

EQUITY 292,791. 365,860. 450,386. 546,698. 655,926.
50 72 48 26 33
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Notes to Financial Statements
Notes to financial statements contain the computation and additional
information presented in the financial statements. Notes provide a narrative
description of the accounts presented in the statement of comprehensive income,
statement of changes in partner’s equity, statement of cash flows and statement
of financial position. Also it makes the financial information clearer and more
understandable.
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Note 1
Net Receipts
2017 2018 2019 2020 2021
731,830.
Cash Sales 468,458. 556,491. 611,635. 668,937.
33
28 51 30 08
182,957.
Credit Sales 117,114. 139,122. 152,908. 167,234.
58
57 88 82 27
914,787.
Gross Sales 585,572. 695,614. 764,544. 836,171.
91
85 39 12 35
Less: Sales Returns And

5,855.73 6,956.14 7,645.44 8,361.71
Allowances 9,147.88
Sales Discounts 10,549.3 12,521.0 13,761.7 15,051.0 16,466.1

1 6 9 8 8
889,173.
Net Sales 569,167. 676,137. 743,136. 812,758.
85
81 19 89 55
Note 2
Cost of Sales
2017 2018 2019 2020 2021

Direct Materials Used
329,930.
207,778.1 233,241.3 261,825.1 293,911.7
67
7 8 1 8
Direct Labor
126,555.
102,866.4 110,223.9 118,107.6
96,000.00 34
0 2 9
Factory Overhead
71,533.3
68,014.12 68,747.16 69,578.08 70,652.09
8
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Freight In 6,000.00 6,123.00 6,248.52 6,376.62 6,507.34
Total Manufacturing Cost

534,526.
377,792.2 410,977.9 447,875.6 489,048.1
72
9 4 3 7
Add: Finished Goods, Beg

- 53,832.3
37,779.23 44,875.72 49,275.13
3
Cost of Goods Available

588,359.
for Use 377,792.2 448,757.1 492,751.3 538,323.3
06
9 7 5 0
Less: Finished Goods, End

58,835.9
37,779.23 44,875.72 49,275.13 53,832.33
1
Cost of Sales
529,523.
340,013.0 403,881.4 443,476.2 484,490.9
15
6 5 1 7
Note 3
Operating Expenses
2017 2018 2019 2020 2021

Selling Expense
Advertising 15,443.2
6,531.20 5,291.90 4,288.18 3,475.16
0
Delivery
4,200.00 4,286.10 4,373.97 4,463.63 4,555.14
Total Selling Expense 19,643.2 10,817.3

9,665.87 8,751.81 8,030.30
0 0
Administrative Expense
Salary-Manager
84,000.0 88,200.0 92,610.0 97,240.5 102,102.
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0 0 0 0 53
Depreciation-Office
Equipment 2,782.63 2,782.63 2,782.63 2,782.63 2,782.63
Depreciation-Office Furniture
384.80 384.80 384.80 384.80 384.80
and Fixtures
Utilities-Office
7,439.28 7,591.79 7,747.42 7,906.24 8,068.32
Maintenance-Office
1,072.17 1,094.15 1,116.58 1,139.47 1,162.83
Permits and Licenses

9,945.00 5,735.00 5,735.00 5,735.00 5,735.00
Office Supplies
1,713.47 1,748.60 1,784.44 1,821.02 1,858.35
Doubtful Accounts
1,171.15 2,562.37 4,091.46 5,763.81 7,593.38
Rent-Office
9,360.00 9,360.00 9,360.00 9,360.00 9,360.00
Total Administrative Expense 117,868. 119,459. 125,612. 132,133. 139,047.

50 34 33 47 84
Total Operating Expenses 137,511. 130,276. 135,278. 140,885. 147,078.

70 64 20 28 14
Note 4
Accounts Receivable
2017 2018 2019 2020 2021
46,845.8 55,649.1 61,163.5 66,893.7

Accounts Receivable, Beg -
3 5 3 1
117,114. 139,122. 152,908. 167,234. 182,957.

Credit Sales
57 88 82 27 58
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117,114. 185,968. 208,557. 228,397. 249,851.

Total Accounts Receivable
57 71 98 80 29
70,268.7 130,319. 147,394. 161,504. 176,668.

Less: Collection
4 56 45 09 26
46,845.8 55,649.1 61,163.5 66,893.7 73,183.0

Accounts Receivable, End
3 5 3 1 3
Less: Allowance for Doubtful

1,171.15 1,391.23 1,529.09 1,672.34 1,829.58
Accounts
45,674.6 54,257.9 59,634.4 65,221.3 71,353.4

Accounts Receivable, Net
8 2 4 7 6
Note 5
Merchandise Inventory
2017 2018 2019 2020 2021
Finished Goods,
Inventory 37,779.23 44,875.72 49,275.13 53,832.33 58,835.91
Total Inventory
37,779.23 44,875.72 49,275.13 53,832.33 58,835.91
Note 6
Property, Plant and Equipment
2017 2018 2019 2020 2021
Factory Equipment 38,613.1 38,613.1 38,613.1 38,613.1 38,613.1

5 5 5 5 5
Less: Accumulated
7,722.63
Depreciation 15,445.2 23,167.8 30,890.5 38,613.1
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6 9 2 5
Net Book Value 30,890.5 23,167.8 15,445.2 7,722.63 -

2 9 6
Factory Furniture and Fixture 17,150.0 17,150.0 17,150.0 17,150.0 17,150.0

0 0 0 0 0
Less: Accumulated
1,715.00 3,430.00 5,145.00 6,860.00 8,575.00
Depreciation
Net Book Value 15,435.0 13,720.0 12,005.0 10,290.0 8,575.00

0 0 0 0
Leasehold Improvements 3,460.00 3,460.00 3,460.00 3,460.00 3,460.00
Less: Accumulated
692.00 1,384.00 2,076.00 2,768.00 3,460.00
Depreciation
Net Book Value 2,768.00 2,076.00 1,384.00 692.00 -
Office Equipment 13,913.1 13,913.1 13,913.1 13,913.1 13,913.1

5 5 5 5 5
Less: Accumulated
2,782.63 5,565.26 8,347.89 11,130.5 13,913.1
Depreciation
2 5
Net Book Value 11,130.5 8,347.89 5,565.26 2,782.63 -

2
Office Furniture and Fixture 3,848.00 3,848.00 3,848.00 3,848.00 3,848.00
Less: Accumulated
384.80 769.60 1,154.40 1,539.20 1,924.00
Depreciation
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Net Book Value 3,463.20 3,078.40 2,693.60 2,308.80 1,924.00
Total Book Value of PPE 63,687.2 50,390.1 37,093.1 23,796.0 10,499.0

4 8 2 6 0
Note 7
Accounts Payable
2017 2018 2019 2020 2021
Accounts Payable, Beg - 16,969.97 19,049.64 21,384.17 24,004.80
Cost on Account 42,424.92 47,624.09 53,460.43 60,012.00 67,366.47
Total 42,424.92 64,594.06 72,510.06 81,396.17 91,371.27
Less: Payment 25,454.95 45,544.42 51,125.89 57,391.37 64,424.68
Accounts Payable, End 16,969.97 19,049.64 21,384.17 24,004.80 26,946.59
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Financial Analysis
Financial data contain in the financial statements are evaluated to
determine the financial positions of the business. for decision-making purposes,
a thorough analysis and interpretation of such statement is required. Merely
reading such statements however, is not enough when one wants to make
judgment and decisions.
Financial statement analysis involves the assessment and evaluation of
the firm’s past performance, its present condition and future business potentials.
The data needed for analysis and interpretation come mostly from the financial
statement where key figures are sought and meaningful relationships are
developed and analyzed. Additional data come from mother sources such as
industry and economic statistics; wherein experts in this area can be required by
exposure and experience.
Financial Ratios
A financial ratio is a comparison in fraction, proportion, decimal or
percentage form of two significant figures taken from financial statements. It
expresses the direct relationship between two or more quantities in the balance
sheet and income statement of a business firm (Cabrera, 2011).
I. Liquidity Ratio. Refers to the company’s ability to pay short-term current
liabilities as they fall due. Though the analysis of liquidity is most important
to short-term creditors, it also concerns to long-term creditors. No firm
could get the long-term if it could not even get the short-term.
 Current Ratio is the primary test of solvency to meet current obligations
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from current assets as going concern. It measures the short-term debt-
paying ability of the business (Cabrera, 2011).
Current Assets
Current Ratio =
Current Liabilities
Table 5.6
Current Ratio
Current Assets Current Liabilities Current Ratio
2017 169,284.12 16,969.97 9.98 :1
2018 193,043.69 19,049.64 10.13 :1
2019 218,083.74 21,384.17 10.20 :1
2020 244,237.03 24,004.80 10.17 :1
2021 272,133.04 26,946.59 10.10 :1
Table 5.6 showed the continuous increasing trend of the current ratio in
which it indicates the improving financial situations of the company.
 Quick or Acid Test Ratio is a more rigorous test of a company’s ability to
meets its short-term debts and is designed to measure how well a
company meet its obligations without having to liquidate or depend too
heavily on its inventory (Cabrera, 2011).
Quick Assets
Quick or Acid Test Ratio =
Current Liabilities
Table 5.7
Quick or Acid Test Ratio
Year Cash Accounts Quick Current Quick

Receivable Assets Liabilities Ratio
201 85,830.21 45,674.68 131,504.89 16,969.97 7.75 :1

7
201 93,910.06 54,257.92 148,167.98 19,049.64 7.78 :1

8
201 109,174.1 59,634.44 168,808.61 21,384.17 7.89 :1
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9 7
202 125,183.3 65,221.37 190,404.70 24,004.80 7.93 :1

0 3
202 141,943.6 71,353.46 213,297.13 26,946.59 7.92 :1

1 8
Table 5.7 showed that the firm is financially secured in short-term since
like the current ratio, the quick ratio is also increasing in the succeeding years.
Still it is favorable because the quick assets are higher than current liabilities.
 Working Capital is the net liquid computed by deducting current liabilities
from current assets. The amount of available working capital is a measure
of a firm’s ability to meet its short-term obligations. It also indicates the
relative liquidity of total assets and distribution of resources employed
(Cabrera, 2011).
Working Capital = Current Assets – Current Liabilities
Table 5.8
Working Capital
Year Current Asset Current Liabilities Working Capital
2017 169,284.12 16,969.97 152,314.15
2018 193,043.69 19,049.64 173,994.06
2019 218,083.74 21,384.17 196,699.57
2020 244,237.03 24,004.80 220,232.23
2021 272,133.04 26,946.59 245,186.45
Table 5.8 showed an increasing trend of working capital, which is an
indication of an improvement in the short-term debt-paying ability of the
company. This trend also shows that the good credit standing of the firm will be
continuously maintained.
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 Working Capital to Total Assets indicates the relative liquidity of the
total asset distribution of resources employed.
Working Capital
Working Capital to Total Assets =
Total Assets
Table 5.9
Working Capital to Total Assets
Year Working Capital Total Assets Ratio
2017 152,314.15 292,791.50 0.52 :1
2018 173,994.06 365,860.72 0.48 :1
2019 196,699.57 450,386.48 0.44 :1
2020 220,232.23 546,698.26 0.40 :1
2021 245,186.45 655,926.33 0.37 :1
There is a consistent decrease in working capital to assets in which it
implies that the firm will be able to create more resources than those that will be
used in undertaking the proposed business for the next five years.
II. Profitability Ratio
Profitability ratio measures the overall performance of the firm and its
efficiency in managing assets, liabilities and owner’s equity. (Cabrera, 2011)
 Gross Profit Margin shows the relationship between sales and the cost
of the product sold and measures the ability of the company both to
control cost and inventory or manufacturing of the products and to pass
along price increases through sales to customers (Cabrera, 2011).
Gross Profit
Gross Profit Margin =
Net Sales
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Table5.10
Gross Profit Margin
Year Gross Profit Net Sales Percentage(%)
2017 229,154.75 569,167.81 40.26%
2018 272,255.74 676,137.19 40.27%
2019 299,660.67 743,136.89 40.32%
2020 328,267.58 812,758.55 40.39%
2021 359,650.70 889,173.85 40.45%
Table 5.10 showed that the firm’s gross profit is sufficient to cover up the
operating expenses. It also indicates that the firm is able to generate profit.
 Operating Profit Margin is a measure of overall operating efficiency and
incorporates all expenses associated with ordinary or normal business
activities (Cabrera, 2011).
Operating Profit
Operating Profit =
Net Sales
Table 5.11
Operating Profit Margin
Year Operating Profit Net Sales Percentage (%)
2017 91,643.06 569,167.81 16.10%
2018 141,979.10 676,137.19 21.00%
2019 164,382.47 743,136.89 22.12%
2020 187,382.30 812,758.55 23.06%
2021 212,572.56 889,173.85 23.91%
Data in table 5.11 measures the efficiency of earning net income from
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sales. It also shows that the firm is able to generate profit after deducting all
operating expenses.
 Net Profit Margin measures profitability after considering all revenue and
expenses (Cabrera, 2011).
Net Income
Net Profit Margin =
Net Sales
Table 5.12 indicated that the firm is profitable after deducting all costs and
expenses.
Table 5.12
Net Profit Margin
Year Net Income Net Sales Percentage (%)
2017 91,643.06 569,167.81 16.10%
2018 141,979.10 676,137.19 21.00%
2019 164,382.47 743,136.89 22.12%
2020 187,382.30 812,758.55 23.06%
2021 212,572.56 889,173.85 23.91%
 Rate of Return on Assets measures the overall efficiency of the firm in
managing its assets and generating profits (Cabrera, 2011).
Net Income
Rate on Return on Assets =
Average Total Assets
Table 5.13
Rate of Return on Asset
Year Net Income Ave. Total Asset Percentage (%)
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2017 91,643.06 292,791.50 31.30%
2018 141,979.10 329,326.11 43.11%
2019 164,382.47 408,123.60 40.28%
2020 187,382.30 498,542.37 37.59%
2021 212,572.56 601,312.30 35.35%
Table 5.13 showed the rate of return on asset, which signifies the
efficiency of the firm in using their assets to earn income.
 Rate of Return on Equity measures the effectiveness of the
management in generating wealth from the business in relation to the
investment of the owners (Cabrera, 2011).
Net Income
Rate of Return on Equity =
Average Partner's Equity
Table 5.14
Rate of Return in Equity
Year Net Income Ave. Partners Equity Percentage (%)
2017 91,643.06 275,821.53 33.23%
2018 141,979.10 311,316.30 45.61%
2019 164,382.47 387,906.70 42.38%
2020 187,382.30 475,847.89 39.38%
2021 212,572.56 575,836.60 36.92%
Table 5.14 showed inconsistent changes in the rate of return on equity.
Despite of that, the firm is still efficient in using its invested capital to generate
revenue. It also measures the rate of earnings on resources provided by the
partners.
III. Solvency Ratio
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Solvency ratio measures the extent of a firm’s financing, with debt relative
to equity and its ability to cover interests and other fixed charges (Cabrera,
2011).
 Debt Ratio measures the proportion of all assets that are finance with
debt (Cabrera, 2011).
Total Liabilities
Debt Ratio =
Total Assets
Table5.15
Debt Ratio
Year Total Liabilities Total Assets Ratio
2017 16,969.97 292,791.50 0.06 :1
2018 19,049.64 365,860.72 0.05 :1
2019 21,384.17 450,386.48 0.05 :1
2020 24,004.80 546,698.26 0.04 :1
2021 26,946.59 655,926.33 0.04 :1
Table 5.15 showed decreasing ratio, which indicates the portion of debt in a
company’s capital structure. Still this ratio is favorable because the firm is able to
pay its debt.
 Equity Ratio indicates the proportion of assets provided by the partners.

Equity Ratio =
Total Assets
Table 5.16
Equity Ratio
Year Total Partners Equity Total Assets Ratio
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2017 275,821.53 292,791.50 0.94 :1
2018 346,811.08 365,860.72 0.95 :1
2019 429,002.31 450,386.48 0.95 :1
2020 522,693.46 546,698.26 0.96 :1
2021 628,979.74 655,926.33 0.96 :1
Table 5.16 showed increasing trend of equity. This measures the portion of
the firm’s assets coming from its owners. It also indicates that the firm is stable.
 Debt to Equity Ratio measures the riskiness of the firm’s capital structure
in terms of relationship between the funds supplied by creditors (debt) and
investors (equity) (Cabrera, 2011).
Total Liabilities
Debt to Equity Ratio =
Table 5.17
Debt to Equity Ratio
Year Total Liabilities Total Partners Equity Ratio
2017 16,969.97 275,821.53 0.06 :1
2018 19,049.64 346,811.08 0.05 :1
2019 21,384.17 429,002.31 0.05 :1
2020 24,004.80 522,693.46 0.05 :1
2021 26,946.59 628,979.74 0.04 :1
This shows the relationship of the capital provided by the creditors to the
capital provided by owners. The table shows a favorable ratio to the firm because
the majority of the capital comes from the investment of the owners.
IV. Activity Ratio
Activity ratio measures the liquidity of specific assets and efficiency in
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managing assets(Cabrera, 2011).
 Accounts Receivable Turnover measures how many times a company’s
accounts receivable have been turned into cash during the year (Cabrera,
2011).
Net Credit Sales

Accounts Receivable Turnover =
Average Accounts Receivable
Table 5.18
Accounts Receivables Turnover
Year Net Credit Sales Ave. Accts. Rec. A/R Turnover
2017 117,114.57 45,674.68 2.56
2018 139,122.88 49,966.30 2.78
2019 152,908.82 56,946.18 2.69
2020 167,234.27 62,427.90 2.68
2021 182,957.58 68,287.41 2.68
Table 5.18 showed an inconsistent change and lower turnover rate.
 Average Collection Period evaluates the liquidity of accounts receivable
for the firm’s credit policy. It is the average number of days required to
convert receivable into cash. (Cabrera, 2011)
365 Days
Average Collection Period =
Accounts Receivable Turnover
Table 5.19
Average Collection Period
Year Days in a Year A/R Turnover Days
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2017 365 2.56 142
2018 365 2.78 131
2019 365 2.69 136
2020 365 2.68 136
2021 365 2.68 136
Table 5.19 showed that the firm could collect the receivables at an
average of every 136 days
 Inventory Turnover measures the efficiency of the firm in managing and
disposing of inventories (Cabrera, 2011).
Cost of Goods Sold

Inventory Turnover =
Average Inventory
Table5.20
Inventory Turnover
Year Cost of Goods Sold Ave. Inventory Inventory Turnover
2017 340,013.06 37,779.23 9.00
2018 403,881.45 41,327.47 9.77
2019 443,476.21 47,075.43 9.42
2020 484,490.97 51,553.73 9.40
2021 529,523.15 56,334.12 9.40
This shows an unfavorable turnover to the firm. It measures the relative
control over inventory investment.
 Average sale period is the number of days being taken to sell the entire
inventory one time (Cabrera,2011).
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365 Days
Average Sale Period =
Inventory Turnover
Table 5.21
Average Sale Period
Year Days in Year Inventory Turnover Days
2017 365 9.00 41
2018 365 9.77 37
2019 365 9.42 39
2020 365 9.40 39
2021 365 9.40 39
Table 5.21 showed that the firm could convert the inventory into cash in an
average of 39 days.
 Asset Turnover is a measure of the efficiency of management to
generate sales and thus earn more profit for the firm (Cabrera,2011).
Net Sales
Asset Turnover=
Average Total Assets
Table 5.22
Asset Turnover
Year Net Sales Ave. Total asset Asset Turnover
2017 569,167.81 292,791.50 1.94
2018 676,137.19 329,326.11 2.05
2019 743,136.89 408,123.60 1.82
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2020 812,758.55 498,542.37 1.63
2021 889,173.85 601,312.30 1.48
Table 5.22 showed a favorable asset turnover, which it indicates that the firm
is efficient in utilizing their total assets to generate revenue.
V. Break-even Point Analysis
Break-even analysis is useful in making sound decisions regarding such
things as pricing, expense control, expansion of facilities, etc. understanding
break-even helps a business to determine exactly how much sales they can
produce to generate a desired profit. An analysis of break-even is helpful to
business because it provides a yardstick of the firm’s potential in gaining or
incurring loss (Agamata, 2009).
 Break-even point is the level of sales volume where total revenues and
expenses are equal which has neither profit nor loss.
Fixed Cost
Break Even Point =
Contribution Margin/Unit
Table 5.23
Break Even Volume Analysis
Year Fixed Cost Cont. Margin/ Unit Break Even Point
2017 207,016.96 144.90 1,429
2018 199,299.47 154.06 1,294
2019 203,711.18 151.75 1,342
2020 209,053.59 148.98 1,403
2021 214,420.66 146.33 1,465
Table 5.23 analysis showed the number of units to be sold to avoid loss.
Compare to sales volume, there is a large gap, which indicates that the firm is far
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from incurring loss.
 Break-even Sales is used to determine the point without at which
company’s cost will exactly equal its revenues therefore resulting in the
net income of zero or the break-even point (Cabrera,2011).
Fixed Costs
Break Even Sales =
Contribution Margin Percentage
Table 5.24
Break Even Sales Analysis
Year Fixed Cost Cont. Margin %
2017 207,016.96 48.11% 430,342.54
2018 199,299.47 51.67% 385,752.55
2019 203,711.18 51.32% 396,943.00
2020 209,053.59 50.71% 412,270.33
2021 214,420.66 50.08% 428,145.92
Table 5.24 showed the sales to be earned to cover up costs. The firm can
generate sales higher than break even sales.
Fixed Cost per Unit

Break Even Selling Price =
Contribution Margin Percentage
Table 5.25
Break Even Selling Price per Unit
Year Fixed Cost per Unit Cont. Margin %
2017 95.84 48.11% 199.23
2018 83.88 51.67% 162.35
2019 77.94 51.32% 151.88
2020 72.72 50.71% 143.40
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2021 67.80 50.08% 135.38
Table 5.25 showed a decreasing selling price, which indicates that the firm is
able to lower their selling price but still can generate profit.
 Margin of Safety measures the potential effect of the risk when sales fall
short of planned levels. It is the excess of actual or budgeted sales over
break-even sales and indicates the amount by which sales could decrease
before losses are incurred (Cabrera,2011).
Margin of Safety = Budgeted Sales – Break Even Sales
Table 5.26
Margin of Safety
Year Budgeted Sales Break Even Sales Margin of Safety
2017 569,167.81 430,342.54 138,825.27
2018 676,137.19 385,752.55 290,384.64
2019 743,136.89 396,943.00 346,193.89
2020 812,758.55 412,270.33 400,488.22
2021 889,173.85 428,145.92 461,027.92
The increasing margin of safety indicates that the firm is far from incurring
losses because of a large gap in sales and margin of safety.
Margin of Safety
Margin of Safety Ratio =
Budgeted Sales
Table 5.27
Margin of Safety Ratio
Year Margin of safety Budgeted Sales MOS Ratio
2017 138,825.27 569,167.81 0.24 :1
2018 290,384.64 676,137.19 0.43 :1
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2019 346,193.89 743,136.89 0.47 :1
2020 400,488.22 812,758.55 0.49 :1
2021 461,027.92 889,173.85 0.52 :1
This indicates that the firm is unlikely to incur losses because of the
increasing MOS ratio.
VI. Payback Period
Payback period which is also known as payoff and payout period
measures the length time required to recover the amount of initial investment. It
is defined as the time interval between the time of the initial outlay and the full
recovery of the investment (Cabrera,2011).
Table 5.28
Payback Period
Cost of Annual Cash Payback

Year Balance
Investment Inflow Period
138,356.9
2017 230,000.00 91,643.06 1.00
4
2018 141,979.10 0.97
2019
2020
2021
Payback
1.97
Period
It shows that the firm can recover the initial investment in 1.97 years or
one year and 11 months.
Generalization
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The company will have an initial project cost of Php230,000, which the
partners will invest equally amounting Php115,000.00. Project cost is determined
by summing up all the costs to be incurred for first two months of operation. The
firm set financial assumptions to analyze if the business will be profitable and to
establish projections for financial statements. The most of the ratios show
favorable variance to the firm. This mean that the firm can survive in the long run
of operation. The break even sales for the next five years are far from the actual
sales that the firm will generate. The initial investment can recover in 1.97 years
or one year and 11 months, which is favorable because it does not exceed the
one half of the operation.
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Chapter VI
SOCIO ECONOMIC STUDY
Introduction
The socio-economic chapter of this feasibility study shows the important
benefits that can be obtained from the establishment of JEA Books Company. It
is not only for the lone purpose of generating income but also for providing socio-
economic benefits that of help in enriching the Philippine economy. The project
conforms and is confined within the existing rules of the law when it comes to
public desirability.
Contribution to the Philippine Economy
Businesses are set up for the common purpose, which is to earned
money, and gain profit from their invested capital. It does not necessarily show
that businesses are established for their own welfare only. Giving back to country
is one of the aspects considered by the proposed project to uplift Philippine
economy.
JEA Books Company primarily contributes to the total economic
development through the earnings it will generate and through prompt payment
of taxes to the government. The business helps the external companies where
they will outsource the manufacturing process to increase profit. The taxes from
profit will contribute the economy of the Philippines. Materials in the conduct of its
operation, the circulation of material resources will eventually arise. Maximization
of resources will be achieved. Equipment, tools, materials and other raw sources
to be used in the operations will be provided by other business, which will enable
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those establishments to increase their production and sales thus giving them
more income, which will contribute to the national economic development.
The proposed business will add both skilled and unskilled jobs. By means
of providing works it can help to reduce the unemployed individual. And the most
important contribution of the business is by taxes (VAT) which the government in
turn, uses to defray necessary expenses. Through such simple ways the growth
of the Philippine economy will arise.
Employment Generation
One of the few-named economic problems in our society is
unemployment. It hinders the economic prosperity of the Philippines. Establishing
the proposed business can offer additional jobs in the community. Even though
there will be few positions offered, this will indirectly benefit and protect the
economic situation of more individuals and families. JEA Books Company will
employ one worker who receives proper payment and benefits. Outsourcing is
the process of assigning a company’s business process to an external agency in
lieu of enhancing service quality, driving innovation or deriving benefits of lower
labor cost. The effect of this strategy is to increase the speed and the quality of
delivery outsourced activities. More profit will generate, more materials and more
manpower will be needed. Through this the business will rapidly grow and
expand. Therefore the firm contributes a large portion of their benefits from the
operations and one of this is to give opportunities to those unemployed
individual.
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Social Desirability
A manufacturing cannot operate without waste. The nature of the
operation is not as harmful to the environment as any other manufacturing
business. To avoid environmental and societal disturbances, the external
company will observe proper disposal of waste and scrap and it will follow the
local government’s rule regarding maintenance. In addition, the firm will provide
high quality products to the consumers through effective implementation of
production policies and cooperation of its suppliers and retailers.
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Bibliography
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BIBLIOGRAPHY
A. BOOKS
Agamata, Franklin. Management Advisory Services: A Comprehensive Guide.

Manila: GIC Enterprise and Co., Inc. 2011.
Ballada, W. 2012. Basic Accounting, DomDane Publishers. Sampaloc, Manila.
Cabrera, Ma. Elenita. Management Accounting Concepts and Applications.

Manila: GIC Enterprises and Co., Inc. 2011
De Leon, Hector S. The Law on Partnerships and Corporation. Quezon City:

Printing Company, Inc. 2010
Go, J. and Escareal-Go C.,2011. Fundamentals of Marketing (2nd Edition) in the

Philippine Setting, Mansmith and Fielders Inc. 2011
Valix, Conrado T., Peralta, Jose F. and Valix, Christian Aris M. Financial
Accounting Two. Manila: GIC Enterprises and Co., Inc. 2011
B. ELECTRONIC SOURCES
.
‘Book’, http://www.madehow.com/Volume-1/Book.html (02/22/15)
‘Descriptive Research’, http://fluidsurveys.com/university/descriptive-research
defining-respondents-drawing-conclusions/ (02/22/15)
‘Education’, http://www.merriam-webster.com/dictionary/education (02/12/15)

http://www.businessdictionary.com
http://www.ebay.com
http://www.amazon.com
http://www.olx.com
C. UNPUBLISHED BOOKS
Alcaraz, Gestonni., et al. Establishement of Spot It Highlighter. Batangas State

University. April 2007.
Briones, Catherine Joy M., et al. Establishment of Aloe Manufacturing Enterprise:
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Manufacturer of Have-it-all Accounts Notebook. Batangas State

University. March 2015
Flores, Jessica., et al. Establishment of Accounting Tutorial Center. Batangas

State University. October 2012.
Mangubat, Joelyn., et al. Establishment of Plug-all (Multi-Charger). Batangas

State University. March 2010.
D. OTHER REFERENCES
Business Permits and Licenses’ Office, Batangas City
City Assessor’s Office, Batangas City
City Planning and Development Office, Batangas City
City Treasurer’s Office, Batangas City
Schedule of PhilHealth Contribution
Schedule of SSS Contribution
Tax Mapping, Batangas City
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Appendices
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Appendix A
Articles of Co-Partnership
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ARTICLES OF CO-PARTNERSHIP
OF
JEA BOOKS COMPNAY
KNOW ALL MEN BY THESE PRESENTS:
We, the undersigned, at of legal age and residents of the Philippines have
this day voluntarily bind ourselves together for the purpose of forming a
partnership effective as of this day, under the terms and conditions herein after
set forth and subject to the provisions of existing laws of the Republic of the
Philippines.
AND WE HEREBY CERTIFY:
I
That the name of the partnership shall be “JEA Books Company” and shall
operate and transact under the said name.
II
That the principal office of the business shall be located at Poblacion 10
Noble St., Batangas City.
III
That the names, citizenship and residences of the partners of the said
partnership are as follows:
NAME CITIZENSHIP RESIDENCE
Del Mundo, Angelica M. Filipino Looc, Balete, Batangas
Perez, Ezra M. Filipino Natatas, Tanauan City, Batangas
IV
That the purpose for which and partnership is formed is to manufacture
dictionary to be sold to accounting students from universities and colleges in
Batangas City.
V
That the capital of this partnership shall be THREE HUNDRED FOURTY
THOUSAND PESOS (230,000) in lawful money of the Philippines, which has
been contributed equally in cash by the partners in the amount of ONE
HUNDRED SIVENTY THOUSAND PESOS (115,000) each.
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VI
That the firm shall be under the management of Angelica M. Del Mundo,
as Managing Partner and as such she shall be in change of the overall
supervision and management of the operations and affairs of the partnership;
VII
That the profits and losses are to be divided equally unless otherwise
changed by the partners;
VIII
That the partners shall be allowed to withdraw amount not exceeding 50%
of their respective share in operating income after the first three months of
operation; and
IX
That the partners undertake to change the name of the partnership
immediately upon receipt of notice or directive from the Securities and Exchange
Commission that another partnership, corporation or person has acquired a prior
right to the use of that name or that the name has been declared misleading,
deceptive, confusingly similar to a registered name, or contrary to public morals,
good customs or public policy.
IN WITNESS WHEREOF, we have hereunto set our hands, this ____ at
Batangas City, Philippines.
_______________________
Del Mundo, Angelica M.
_______________________
Perez, Ezra M.
Signed in the presence of:
_______________________
Witness
_______________________
Witness
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Appendix B
Contract of Lease
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CONTRACT OF LEASE
KNOW ALL MEN BY THESE PRESENTS:
This Contract of Lease made and entered into this (day, month,year) at
Batangas City, Philippines , by and between:
Mr. Angelito N. Mojica, of legal age, married, Filipino citizen, with
residence and postal address at Happy Home Subd. Tambo, Lipa City,
Batangas, Philippines, hereinafter referred to as the “LESSOR”.
- And -
JEA Books Company, a partnership duly organized and existing under
the laws of the Philippines, represented herein by its general partners,
ANGELICA M. DEL MUNDO and EZRA M. PEREZ, duly authorized to
sign this contract hereinafter referred to as the “LESSEE”;
WITNESSETH that:
WHEREAS, THE LESSOR is absolute owner of a parcel of land located at
Noble St. Batangas City containing approximately an area of 1,812m 2 , more
clearly described in Transfer of Certificate of the Title No. T-31913 of the
Registrar of Deeds of Batangas City together with its improvements and;
WHEREAS, the LESSOR HAS offered to LESSEE the said property and
the LESSEE has accepted the LESSOR’S offer subject to the following terms,
conditions and stipulations of the parties;
NOW, THEREFORE, the parties agree to execute this contract and bind
themselves to the following terms and conditions:
1. TERM OF LEASE- The term of the lease shall be FIVE YEARS beginning
from the 1st day of January 2017 until December 2021. This may be
annually renewed by the contracting parties through the execution of the
same instrument provided that they agree with the same other stated
stipulations. A letter of intent to renew this agreement must be submitted
at least one (1) month before the term of the lease express.
2. RENTAL- The monthly rental for the leased premises shall be TWO
THOUSAND SIX HUNDRED PESOS (2,600) PHILIPPINE CURRENCY,
payable every last day of the month.
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3. USE OF THE PREMISE

 The premise subject to this lease shall be used by the
LESSEE for plant site and main office.
 The LESSEE hereby acknowledges the leased premises in
a good and tenantable condition and undertakes to keep an
maintain the same in the same and orderly tenantable
condition as it was at the start of the contract.
 The LESSEE shall not keep and maintain pets of any kind in
the leased premises.
 The LESSEE shall not keep on store in leased premises
any explosive or inflammable materials or anything
hazardous to health, safety and security of persons or
property.
 The LESSEE shall not bring, keep or store in the leased
premises any article prohibited by law, nor shall the LESSEE
allow anyone to bring therein any such article.
 The LESSEE shall give the LESSOR at least two (2) months
prior notice if the LESSEE intends to terminate the contract
of lease.
4. UTILITIES- All expenses for the water and electric consumption services
in the leased premises shall be for the account of the LESSEE. The
LESSEE shall be responsible for any irregularity in the use of water and
electric meters in the leased premises during the term of this contract.
5. SUB-LEASE PROHIBITED- the LESSEE shall not sublease the leased

premises or any portion thereof and shall not assign or in any manner
encumber the rights therein the rights by virtue of the contract.
6. ALTERATIONS AND IMPROVEMENTS- The LESSEE shall not in any

way alter any of the structure in the leased premises without the consent
of the LESSOR in WRITING. All the improvements introduced by the
LESSEE in the leased premises shall remain with the premises and
automatically belong to the LESSOR without any obligation to reimburse
to the LESSEE for the cost or values thereof.
7. INSPECTION OF THE PREMISES- The LESSOR shall have the right to

inspect the premises at any time during the reasonable hours of day and
night.
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8. LIABILITIES FOR DAMAGES- The LESSEE shall be liable for whatever

damages that may be made on the leased premises by the reason of its
own acts of omission or by those of anyone of his/her employees,
personnel, guests, clients or customers.
9. NO IMPLIED WAIVER OR CONDITIONS- Failure of the LESSOR to

invoke or enforce strictly the terms and conditions of this conduct shall not
be construed as an abandonment or waiver of the terms and conditions
herein set forth.
10. TERMINATION OF LEASE- Should LESSEE fail to pay rentals as

stipulated or should if, at any time, fail or neglect to perform, or observe
any of the covenants, conditions, agreement or restrictions herein the
premises shall be peacefully vacated by the LESSEE, and all persons
claiming rights under it, without prejudice on the part of the LESSOR to
exercise his rights arising from the contract and under the law. The entity
shall notify the LESSOR at least thirty (30) days in advance should the
LESSEE decide to abandon the leased premises.
IN WITNESS WHEREOF, the parties hereto have set their hands on the
date and at the place first within above.
_______________________
Mr. Angelito N. Mojica JEA Books Company
LESSOR LESSEE
Represented by:
________________________
ANGELICA M. DEL MUNDO
General Partner
WITNESSED BY:
________________________ ________________________
EZRA M. PEREZ
General Partner
________________________
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Appendix E
Number of Student Taking
Accounting Subjects
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Total Students Taking Accounting Subjects (A.Y 2010-2011 to 2014-2015) of

Universities and Colleges in Batangas City
Particulars Population Number of
Number Respondents
Batangas State University- Main 2,710 190
I
Colegio ng Lungsod ng 160 11
Batangas
Golden Gate Colleges 221 15
Lyceum of the Philippines- 608 43
Batangas
University of Batangas 1,097 77
Westmead International School 512 36
Total 5,308 372
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Appendix G
Survey Result
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Tally of Consumer Survey Questionnaire

1. Do you buy dictionary? (If not, proceed to question no.7)
Frequency Percentage
Yes 304 81.72
No 68 18.28
Total 372 100.00
2. Where do you usually buy dictionary?
Bookstore 254 83.55
Department Store 35 11.51
Retail Store 9 2.96
Others: 6 1.97
Total 304 100.00
3. How often do you buy dictionary?
Twice a month 20 6.58
Monthly 15 4.93
Quarterly 46 15.13
Annually 223 73.36
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Total 304 100.00
4. How much do you spend in buying dictionary?
Php 109.00 – 139.99 101 33.22
Php 140.00 – 170.99 89 29.28
Php 171.00 – 201.99 54 17.76
Php 202.00 – 232.99 24 7.89
Php 233.00 and above 36 11.84
Total 248 100.00
5. What is/are the factor/s you consider in buying dictionary?
Cover Page 41 6.73
Price 106 17.14
Packaging 47 7.72
Quality 123 20.20
Content 219 35.96
Author 72 11.82
Others: 1 0.16
Total 609 100
6. Are your criteria/criterion in buying dictionary fully satisfied?
Yes 274 90.13
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No 30 9.87
Total 304 100.00
7. Have you heard/seen accounting dictionary?
Yes 83 22.31
No 289 77.69
Total 372 100.00
8. If the “Handy Compact Accounting Dictionary” will be out in the market are
you willing to buy it?
Yes 364 97.85
No 8 2.15
Total 372 100.00
9. If “Yes”, how much are you willing to pay for it?
Php 140.00 – 160.99 212 58.24
Php 161.00 – 181.99 67 18.41
Php 202.00 – 222.99 45 12.36
Php 223.00 – 243.99 21 5.77
Php 244.00 and above 19 5.22
Total 364 100.00
Tally for Retailer Survey Questionnaire

1. Do you sell dictionary? (If not, please proceed to question no.8)
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Yes 25 100.00
No 0 0.00
Total 25 100.00
2. Where do you get your dictionary?
Manufacturer 4 16.00
Distributor 21 84.00
Others 0 0.00
Total 25 100.00
3. How do you often place your order for your dictionary?
Weekly 0 0.00
Monthly 4 16.00
Quarterly 6 24.00
Semi-annually 2 8.00
Annually 13 52.00
Others 0 0.00
Total 25 100.00
4. Hoy many unit/s do you place in your order?
60 – 80 18 72.00
81 -101 5 20.00
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102 – 122 0 0.00
123 – 143 0 0.00
144 – 164 0 0.00
Others: 24 2 8.00
20
Total 25 100.00
5. How much do you pay for each unit?
Php 99.00 – 119.99 12 48.00
Php 120.00 – 140.99 7 28.00
Php 141.00 – 161.99 3 12.00
Php 162.00 – 182.99 3 12.00
Php 183.00 and above 0 0.00
Total 25 100.00
6. How much do you sell it?
Php 109.00 – 139. 00 12 48.00
Php 140.00 – 170.00 4 16.00
Php 171.00 – 201.00 5 20.00
Php 202.00 – 232.00 4 16.00
Total 25 100.00
7. Approximately, how many units of dictionary were you able to sell for the
last five years?
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2010 2011 2012 2013 2014

715 Trading 53 58 64 69 74
and Enterprise
Abababes 140 154 168 182 196

Printing and
Trading
Aboitess 68 75 82 88 95
School
Supplies and
Accessories
Store
Allil and Zeus 35 39 42 46 49

Enterprise
Bay City Mall 70 77 84 91 98

(Dept. Store)
BB.C Tom’s 126 139 151 164 176

Shoppe Center
Citimart 144 158 173 187 202

Formosa 112 123 134 146 157
Commercial
Imelda 21 23 25 27 29
Dinglasan
Store
JB Trading 45 50 54 59 63
Jimby’s Store 15 17 18 20 21
Kaymig 60 66 72 78 84
Commercial
and Trading
Libjo 62 68 74 81 87
Enterprise
Marife 12 13 14 16 17
Commercial
NBS-Bay City 160 176 192 208 224

Mall
NBS-SM City 101 111 121 131 141

Bats
New Quality 40 44 48 52 56
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Commercial
PESMS 10 11 12 13 14
Precious Pages 152 167 182 198 213
Corp
The Bookplace 90 99 108 117 126

Inc
Thitz School 74 81 89 96 104

Supplies
UNITOP 109 120 131 142 153

Western Bats 68 75 82 88 95
Dev’t Store-
Kumintang
Western Bats 82 90 98 107 115

Dev’t Store-
Pob. 17
Ysay Ramos 8 9 10 10 11
Store
Total 1, 857 2, 043 2, 228 2, 416 2, 600
8. Have you heard/seen accounting dictionary?
Yes 1 4.00
No 24 96.00
Total 25 100.00
9. If we are to produce accounting dictionary, are you willing to buy and sell
it?
Yes 25 100.00
No 0 0.00
Total 25 100.00
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10. How much are you willing to purchase our product?
Php 125.00 – 145.00 14 56.00
Php 146.00 – 166.00 2 8.00
Php 167.00 – 187.00 7 28.00
Php 207.00 – 227.00 2 8.00
Total 25 100.00
11. How much are you willing to sell it?
Php 140.00 – 160.99 14 56.00
Php 161.00 – 181.99 2 8.00
Php 202.00 – 222.99 7 28.00
Php 223.00 – 243.99 2 8.00
Total 25 100.00
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cclix
Curriculum
Vitae
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• Natatas Elementary School, Natatas

Tanauan City Batangas
2002-2012
HONORS AND AWARDS

 City Scholar of Tanauan, Tanauan City
Batangas:2012-present
 Academic Scholar, Batangas State
University:2012-2014
 Consistent Dean's List, Batangas State
University-JPLPC Malvar Campus:2012-
2014
 Second Runner-up in Quiz Bee
Competition, Batangas State University-
JPLPC Malvar Campus:2014
 Class Third Honorable Mention, Natatas
National High School:2012  “
L
PERSONAL DETAILS:
e
Gender : Female a
Date of Birth : December 18, 1995 r
Place of Birth : Natatas, Tanauan, Batangas
Civil Status : Single n
Citizenship : Filipino .
Religion : Roman Catholic
ORGANIZATIONAL AFFILIATION S
e
 JUNIOR PHILIPPINE INSTITUE OF
ACCOUNTANTS- BSU CHAPTER r
2012- Present v
Member
e
SEMINAR ATTENDED: .
 “Learn. Serve.” ”
2nd Accountancy Students Congress
2
Lipa City Colleges Gymnasium, n
Lipa City
August 12, 2012 d
 “Facing the Challenges of the ASEAN
economic integration.”
Calabarzon Marketing Conference & A
Career Enhancement Orientation c
Gov. Feliciano ‘Sanoy’ Leviste Memorial c
Multi-Purpose Gymnasium o
Batangas State University- Main Campus
July 11,2014 u
n
t
a
n
c
cclx y
S
t
cclxi
EZRA MACAHIA PEREZ
CAREER OBJECTIVE
To pursue career in utilizing my management skills

especially in finance and accounting and to gain experience
that can improve my skills.
PROFILE
 Confident, consistent and competent in every field

Mobile  Considerate in everything
0948 421 9879
Address
ASSETS AND CAPABILITIES
Brgy. Natatas, Tanauan City
Batangas
• Proficient in speaking and writing both
Email address English and Filipino
ezra.macahiaperez018@gmail.c • Computer Literate, application such as
om Microsoft Office
• Knowledgeable in Financial and
EDUCATIONAL PROFILE:
Management Accounting
Tertiary Education
• Batangas State
CHARACTER REFERENCES
University-Main
Campus I,
Available upon request.
Batangas City
Bachelor of Science in
Accountancy
2014-present
• Batangas State I hereby certify that the above information are
University-
true and correct to the best of my knowledge and
JPLPC Malvar
belief.
Campus, Malvar,
Batangas
Bachelor of Science in EZRA M. PEREZ
Accountancy Applicant
2012-2014
• Natatas
National
High
School,
Natatas
Tanauan cclxi
City,
Batanga
s
cclxii
cclxii
cclxiii
ANGELICA MAALA DEL MUNDO
CAREER OBJECTIVE
 To acquire position as an intern that will upgrade
my knowledge and enhance my skills in both
theoretical and practical aspects.
 To be in growth-oriented organization where I can
apply accounting for analyzing and verifying
accounts as well as accounting reports.
 To gain exposure to my chosen career.
PROFILE
 Flexible, resourceful, competent, confident and with
strong commitment to assigned task/s.
Mobile
+63-908-5226-808  Giving consideration to details, and such.
Address ASSETS AND CAPABILITIES

Looc Balete, Batangas
Email address  Has sufficient knowledge in accounting.

adelmundo85@yahoo.com  Ability to make well considered decisions.
 Outstanding written and verbal communications.
EDUCATIONAL PROFILE:  Has adequate basic computer skills
 Trustworthy and ethical.
Tertiary Education  Fast learner and has the eagerness to acquire
Bachelor of Science in more knowledge.
Accountancy
Batangas State University Malvar
Campus
2012- 2014
Batangas State University Main
Campus
2014- present
Scholastic Achievements:
 University Scholar (2012-
2014)
 Dean’s honor List
Awardee
(2012-2014)
Secondary Education:
Balete National High School
Balete, Batangas
2008-2012
Scholastic Achievement:
 Second Honorable
Mention cclxiii
cclxiv
Primary Education:
Looc Elementary School
Looc, Balete, Batangas Daniel John F. Falo
2001-2008 Faculty, CABEIHM Department
 Second Honorable Mention Batangas State University-Main I
0935 173 9983
PERSONAL DETAILS:
Carlito Ocampo
Gender : Female
Date of Birth : February 19, 1996 Brgy.Captain
Place of Birth : Looc, Balete, Batangas Looc, Balete, Batangas
Civil Status : Single 0999 733 8263
Citizenship :Filipino
Religion : Born Again Maritess Dumas
Language Spoken : English and Filipino Secretary, Amethyst Dormitory
ORGANIZATIONAL AFFILIATION Tambo, Lipa City Batangas
0933 398 4255
 JUNIOR PHILIPPINE INSTITUE OF  “
ACCOUNTANTS- BSU CHAPTER
2012- Present L
Member e
I hereby certify that the above information are
true anda correct to the best of my knowledge
SEMINAR ATTENDED:
 “Learn. Serve.” r
and belief.
2nd Accountancy Students Congress n
Lipa City Colleges Gymnasium, . ANGELICA M. DEL MUNDO
Lipa City Applicant
August 12, 2012
 “Facing the Challenges of the ASEAN S
economic integration.”
e
Calabarzon Marketing Conference &
Career Enhancement Orientation r
Gov. Feliciano ‘Sanoy’ Leviste Memorial v
Multi-Purpose Gymnasium
Batangas State University- Main Campus e
July 11,2014 .
”
2
n
d
A
c
c
o
u
n
t
a
cclxiv n
c
y

Establishment of JEA Books

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Establishment of JEA Books

Diunggah oleh

Hak Cipta:

Format Tersedia

ESTABLISHMENT OF JEA BOOKS COMPANY: MANUFACTURER OF

HANDY COMPACT ACCOUNTING DICTIONARY

Presented to the Faculty of

College of Accountancy, Business, Economics and

International Hospitality Management

Batangas State University, Batangas City

Of The Requirements for the Degree

Bachelor of Science in Accountancy

Del Mundo, Angelica M.

In partial fulfillment of the requirements for the degree of Bachelor of

Approved by the Committee on Oral Examination with a grade of ______.

Accepted and approved in partial fulfillment of the requirements for the

gratitude to the following individuals for their considerable guidance, assistance

and support for the completion of the study:

To their school Batangas State University and to the College of

Accountancy, Business, Economics and International Hospitality Management

verifications of the documents;

competent adviser by showing his patience, commitment and sharing his

expertise in improving the quality of this study;

constructive criticisms and for giving the proponents essential ideas,

recommendations and advices for the further improvement of the feasibility

To their grammarian, Mrs. Lorena Mendoza for checking over the

feasibility study paper for its precision;

and financial support remain unfaltering;

challenges and failures they encountered.

SUMMARY OF THE PROJECT

II. MARKET STUDY

III. TECHNICAL STUDY

IV. MANAGEMENT STUDY

Working Capital ......................................................................................................... 105

VI. SOCIO-ECONOMIC CONTRIBUTION

Figure No. Title Page

1 Total Number of Business Students Taking Accounting Subjects

2 Average Annual Consumption

5 Historical Supply of Related Product

3 Direct Materials Purchases

4 Direct Materials Used

10 Depreciation of Property, Plant and Equipment

14 Factory Tools and Supplies

17 Legal Fees and Licenses

18 Allowance for Doubtful Accounts

23 Contribution Margin per unit

24 Annual Cash Return

25 Schedule of Profit Distribution

SUMMARY OF THE PROJECT

Name of the Firm

outsource some of the manufacturing process of the product.

Brief Description of the Project

This project primarily focused on establishing JEA Books Company, a

manufacturing business organized as a general partnership operating under

BMBE, which will manufacture Accounting Dictionary. This is new variety of

involved conducting survey to 372 students in different universities and colleges

also involved the determination of production requirements and appropriate

organizational structure, policies and requirements for the business. Projections

of Financial statements and analyses is made to determine if the business will be

The proponents conducted several studies to assess the feasibility of the

marketability of the product. The summary of the several studies is as follows:

JEA Books Company will focus on manufacturing and distribution of

Accounting Dictionary. As a new product, it is intended to give the consumer the

information they need. In the first year of operation it is expected to have a

projected demand of 5,402 and in 2021 a projected demand of 6,830, which

thought to offer Accounting Dictionary, which smaller compare to accounting

is attainable. The firm forecasts to increase production by 10 percent.

operation to promote the product.