ManiTela

A Cloth from Nothing to Something

1.1 FORM OF OWNERSHIP

Corporation

1.2 ORGANIZATIONAL STRUCTURE

BOARD OF
DIRECTORS

MANAGER

SECRETARY

ADMINISTRATIVE SALES &

PRODUCTION
& FINANCE MARKETING
SUPERVISOR
SUPERVISOR SUPERVISOR

HUMAN SALES & QUALITY

ACCOUNTING
RESOURCE MARKETING CONTROL
OFFICER
OFFICER SPECIALIST INSPECTOR

SALES &
ACCOUNTING ADMINISTRATIVE INVENTORY
MARKETING
CLERK & FINANCE CLERK CHECKER
CLERK

SECURITY LOGISTICS
PURCHASER
OFFICER OFFICER

PRODUCTION
WORKER

DELIVERY
DRIVER

Figure 1.1 shows the organizational structure of ManiTela from Board of Directors, the Manager
down to Secretary, Administrative & Finance Supervisor, Sales and Marketing Supervisor,
Production Supervisor and all other positions stated.

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Table 1.1 PERSONNEL REQUIREMENT

Admin Personnel No.of

Personnel
Manager 1
Secretary 1
Admin and Finance Supervisor 1
Sales and Marketing Supervisor 1
Production Supervisor 1
Accounting Officer 1
Human Resource Officer 1
Sales and Marketing Specialist 1
Quality Control Inspector 1
Accounting Clerk 1
Admin & Finance Clerk 1
Sales and Marketing Clerk 1
Inventory Checker 1
Logistics Officer 1
Delivery Driver 2
Purchaser 1
Security Officer 2
Production Worker 9
Total 28

Table 1.1 shows the required personnel for the proposed project which employs a total of
twenty-eight (28) personnel. The position for Bookkeeper and maintenance officer will be
outsourced for the first few years.

1.3 JOB DESCRIPTION, DUTIES, AND QUALIFICATIONS OF PERSONNEL

1.3.1 Board of Directors

A Board of Directors is a group of individuals, elected to represent shareholders.
1.3.2 Manager

The manager is responsible for planning and maintaining work systems, procedures, and
policies that enable and encourage the optimum performance of its people and other
resources within a business unit.

Duties and Responsibilities:

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• Provide oversight and direction to the employees in the operating unit in

accordance with the organization's policies and procedures
• Empower employees to take responsibility for their jobs and goals
• Create a workplace culture that is consistent with the overall organizations and
that emphasizes the identified mission, vision, guiding principles, and values of
the organization
• Lead employees to meet the organization's expectations for productivity,
quality, and goal accomplishment
• Plan, evaluate, and improve the efficiency of business processes and procedures
to enhance speed, quality, efficiency, and output
• Establish and maintain relevant controls and feedback systems to monitor the
operation of the department

Qualifications:

• Knowledge of the functions, operation, and mission of the specific department

• Outstanding interpersonal relationship building and employee coaching and
development skills
• A minimum of three years of responsible leadership experiences in
management or supervisory positions
• Better than average written and spoken communication skills
• Demonstrated knowledge of basic economics, budgeting, and accounting
principles and practices
• Bachelor's degree or equivalent in business or a departmentally related field;
Industrial Engineering course is an advantage

1.3.3 Secretary

The Secretary maintains the smooth running and efficiency of an office through a variety
of secretarial works and as an administrative assistant performing a variety of non-
routine tasks related to the successful completion of the daily support of the
department.

Duties and Responsibilities:

• Deal with telephone and email enquiries, using an email system

• Organize and store paperwork, documents and computer-based information
create and maintain filing and other office systems
• Keep diaries and arrange appointments
• Schedule and attend meetings, create agendas and take minutes
• Book meeting room and conference facilities
• Use a variety of software packages (Excel, Access and PowerPoint) to manage
data and produce documents and presentations

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• Organize travel and accommodation for staff and other external contacts

Qualifications:

• Male/Female
• Preferably 24-28 years’ old
• Preferably a graduate of any business-related course
• Good organization skills
• Good communications skills, written and verbal
• An ability to stay calm and tactful under pressure
• A bright and positive attitude

1.3.4 Administrative & Finance Supervisor

The Administrative and Finance supervisor keeps track on the financial goals in
developing and implementing of budgets. The Admin and Finance supervisor provides
information about the budgets under the company’s policies.

Duties and Responsibilities:

• Provides regular reports on expenses and office budgets

• Responsible for budgeting, payrolls, policies, procedures, check contracts,
facilities, and systems
• Prepares reports and presentations with statistical data especially in meetings
• Organizing an important and confidential company documents

Qualifications:

• Male/Female
• Preferably 24-28 years old and above.
• Preferably a graduate of any business-related course
• Excellent analytical and numerical skills; knowledge in basic accounting is an
advantage
• Pleasing personality and possesses excellent written and oral communication
skill
• Performs organizational tasks

1.3.5 Sales & Marketing Supervisor

The Sales and Marketing Supervisor Accomplishes business development activities by

researching and developing marketing opportunities and plans; implementing sales
plans; managing staff
Duties and Responsibilities

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• Determines annual and gross-profit plans by forecasting and developing annual

sales quotas
• Accomplishes marketing and sales objectives by planning, developing,
implementing, and advertising
• Improves product marketability and profitability by researching, identifying, and
capitalizing on market opportunities
• Provides information by collecting, analyzing, and summarizing data and trends
• Responsible in Tracking marketing strategy results closely and creates detailed
reports with data analysis and other feedback
• Responsible in gathering customer feedback to inform sales and product teams
• Protects organization's value by keeping information confidential
• Responsible in reporting directly to the manager

Qualifications:

• Male/Female preferably 24 years old and above

• Graduate of any four-year business, management, or marketing course
• Excellent verbal and written communication skills
• Strong mathematical and communication skills
• Excellent client Relationships
• Marketing Concepts awareness

1.3.6 Production Supervisor

Production Supervisor oversees the labor of individuals manufacturing a product,

typically in a factory or industrial workplace. Organizes and monitors workflow on the
production floor. Improve employee efficiency to maximize production output and
profits. Ensures production floor is clean and safe for all staff members.

Duties and Responsibilities:

• Develops and implements production policies and procedures

• Delegates manufacturing tasks so that team can meet production deadlines
• Communicates expectations to production workers and appraises their
performance
• Checks manufacturing equipment and control points to ensure efficient
workflow is maintained.
• Organizes for the repair or replacement of faulty production equipment
• Makes recommendations about ways to improve employee efficiency and
reduce costs
• Counsels and disciplines production employees who fail to perform or violate
company policies
Qualifications:

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• Male/Female
• Preferably 24 years old and above
• Graduate of any business and management related courses
• Knowledgeable of the production operations and capable of supervising it
• Time Management Skills
• Ability to Work and Make Decisions Under Pressure

1.3.7 Accounting Officer

Accounting Officer manages financial functions, including accounts

payable/receivable, bank reconciliations and tax audits. The accounting supervisor
uses strong analytical skills to create detailed financial reports and forecasts. To
succeed in this role, you should also have a problem-solving attitude.

Duties and Responsibilities

• Oversee daily transactions, including accounts payable/receivable, general

ledger and bank reconciliations
• Participate in regular tax audits and payroll
• Prepare budgeting reports and forecast revenues
• Manage month-end and year-end closing
• Monitor the daily performance of the accounting department
• Establish accounting policies and procedures, aligned with company’s targets
• Ensure compliance with the law
Qualifications:

• Male/Female
• Preferably 24-28 years’ old
• A degree holder in accounting or finance
• Has a strong mathematical skill
• Strong computer skills, MS Excel in particular
• Minimum of at least 2 years experienced in Financial and Administrative
management

1.3.8 Human Resource Officer

The HR Officer ensure employees receive the proper compensation and benefits,
oversee workplace safety, direct the maintenance of employee records, and manage
overall employee hiring, evaluation and labor relations. They also develop, implement
and oversee training programs or procedures. HR managers must stay up-to-date with
policies that govern employee rights, such as equal opportunity employment and sexual
harassment
Duties and Responsibilities

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• Promoting equality and diversity as part of the culture of the organization

• Recruiting staff, which involves developing job descriptions and person
specifications, preparing job adverts, checking application forms, shortlisting,
interviewing and selecting candidates
• Undertaking regular salary reviews
• Administering payroll and maintaining employee records
• Interpreting and advising on employment law
• Developing HR planning strategies, which consider immediate and long-term
staff requirements
• Planning and sometimes delivering training, including new staff induction
• Working closely with various departments, increasingly in a consultancy role,
assisting line managers to understand and implement policies and procedures
• Developing and implementing policies on issues like working conditions,
performance management, equal opportunities, disciplinary procedures and
absence management

Qualifications:

• Male/Female
• Preferably 26-32 years’ old
• Graduate of any four-year human resources management related course
• Should have business awareness and management skills
• Interpersonal, decision-making, organizational, leadership, and speaking skills
• Knowledge to interpret and explain the employment law
• Human resources management
• Minimum of at least 2 years experienced

1.3.9 Sales & Marketing Specialist

The Sales & Marketing Specialist researches and analyses demographics, pricing
schedules, market trends, competitor products, and other information relevant to the
company’s marketing objectives. They use their marketing expertise to help direct
strategy and planning for promotional materials, sales tactics, and other department
activities. Creates and develops new campaigns, advertising copy, and other marketing
materials.

Duties and Responsibilities

• Researches and analyses a variety of marketing information, including market

trends, pricing schedules, competitor offerings, product specifications, and
demographic data
• Presents findings to marketing teams to help guide the direction and activities
of the department

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• Develops new marketing strategies and campaigns based on detailed analysis of

market forces
• Provides expert direction and insight to marketing staff members throughout
each project or campaign
• Acts as a go-to resource for up-to-date, accurate research and market
information
• Tracks marketing strategy results closely and creates detailed reports with data
analysis and other feedback
• Reports findings and results to upper management and executives

Qualifications:

• Male/Female
• Preferably 24-28 years’ old
• Graduate of Bachelor’s degree in marketing, and business-related course
• Knowledge of Media Channels and Marketing Strategy
• Possess good interpersonal communication skills
• Critical Thinker

1.3.10 Quality Control Inspector

Quality control inspector examines products to ensure that they meet manufacturer
guidelines and do not contain defects. Their job duties may include monitoring
operations, reading blueprints, testing materials, measuring products, rejecting
defective products, and reporting on product suitability to managers or other
responsible parties.

Duties and Responsibilities:

• Inspect, test, or measure materials or products being produced

• Monitor operations to ensure that they meet production standards
• Recommend adjustments to the assembly or production process
• Remove all products and materials that fail to meet specifications
• Report inspection and test data such as weights, temperatures, grades,
moisture content, and quantities inspected
• Measure products with rulers, calipers, gauges, or micrometers

Qualifications:

• Male/Female
• Preferably 26 years old and above
• Quality assurance technician
• Mechanical and technical skills
• Dexterity skills to quickly remove the defected products

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• In depth understanding of quality control procedures and relevant legal

standards
• 1-2 years' related experience

1.3.11 Accounting Clerk

The accounting clerk is the one who has direct client account responsibility. They are
responsible for answering questions, resolving problems and providing general
assistance with the customers’ accounts and also the one who personally collects the
money and the payments from the customers and or buyers.

Duties and Responsibilities:

 Handle accounts payable and receivable

 Maintain records of business costs, such as labor and material
 Check invoices for inaccuracies
 Reconcile accounts with the general ledger
 Handle general account queries
 Contact clients about invoices that are past due

Qualifications:

 Excellent interpersonal skills

 At least 2 years of relevant experience
 College diploma or equivalent
 Proficiency in Excel and QuickBooks
 Great analytical skills
 Eye for detail

1.3.12 Administrative & Finance Clerk

The Admin and Finance clerk is the one who works directly under the administrative and
finance supervisor which governs different financial transactions in the company by
keeping track of the company’s money. Primarily perform all clerical and administrative
work for banking, insurance and to keep records all financial transactions as well as the
releasing of money and budgets of the company.

Duties and Responsibilities

• Processes bills, checks and other documents per transaction

• Responsible for giving the request budget to the Admin and Finance Supervisor
for the manager’s approval before releasing the budget
• Ensuring all financial-related documents are properly signed and distributed

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• Responsible for verifying financial data and maintain accurate records with
supporting monetary transactions
• Responsible for ensuring the accounting procedures
• Reports status of accounts and discrepancies

Qualifications:

• Male/ Female
• Preferable 24-28 years’ old
• Preferably a graduate of accountancy; (CPA)
• Ability to be flexible in pressured situations
• Excellent written and oral communication skills
• Excellent analytical and mathematical skills
• Computer literate

1.3.13 Sales & Marketing Clerk

The Sales and Marketing Clerk monitors and report the marketing data and sales and
will assist the marketing team with event planning, and other document preparation for
the marketing department.

Duties and Responsibilities:

• Arrange special sale and clearance items at the front of the store for maximum
visibility
• Replace merchandise on the shelves, paying special attention to end caps
• Build rapport with customers and provide them with genuine guidance and
support
• Execute special orders for items that are not in stock or that we do not carry
• Handle daily general administrative tasks
• Maintain filling system
• Finds ways to sell products in the face of a down market
• Researches client base to find new types of customers and sells to them
accordingly
• Analyzes the competition to create a plan for engagement
• Demonstrates superior time management skills and meets sales deadlines

Qualifications:

• Male/Female
• Preferably 24-28 years’ old
• Graduate of any business related course
• Excellent communication and organizational skills
• Proficient in Microsoft Office (Word, Excel)

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• Hardworking with pleasant personality

• Flexibility during pressured situations

1.3.14 Inventory Checker

The inventory checker is responsible for managing incoming and outgoing supplies and
products within a business. They may also involve in tasks such as stocking showroom
floors or ordering the necessary raw materials for a business.

Duties and Responsibilities:

• Review and apply inventory activities, including movements and deletions

• Maintain and update inventory records
• Develop and implement efficient inventory management procedures
• Inventory discrepancies
• Implement a loss prevention program
• Report any stock issues to management and place product orders as necessary
• Responsible to report to the upper management on stock levels and other
issues
• Prepare a list of depleted products and a survey of unusable products

Qualifications:

• Preferably male
• 24 years old and above
• Graduate of any four year related course
• An ability to accurately track inventory and create reports
• Able to lift 50 pounds without restriction
• Proficient in Microsoft Office (Word, Excel)

1.3.15 Purchaser

A purchaser is responsible for coordinating purchases of various products and services

for the company. They order supplies, inventory, equipment, and services for all
departments in the company. They also have to ensure that they are keeping costs
under control while not sacrificing quality in the items and services they buy.

Duties and Responsibilities:

 Procure and contract for goods and services in a specific industry

 Take corrective action when defective goods are received
 Inventory existing property and conduct audits
 Test and evaluate sample products, draw up and approve requisitions
 Ensure adequate supply

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 Research and identify vendors, and negotiate to achieve desired quality price

Qualifications:

 He should be a person of undoubted integrity, honesty, initiative and good

conscience
 He should at least be a commerce graduate
• He should have complete information about the material which is required to
purchase, so that requisite quantity of materials may be purchased at
reasonable price from reliable suppliers
• He should maintain proper documents like price list, catalogue, trade, journals
to help him in finding out best possible market
• He should have up-to-date knowledge of import and export, tax assessments,
etc.
• He should be tactful in maintaining sound and friendly relation with the supplier

1.3.15 Security Officer

Security officer maintains safe and secure environment for customers and employees by
patrolling and monitoring premises and personnel.

Duties and Responsibilities

• Responsible in patrolling premises regularly to maintain order and establish

presence
• Responsible in monitoring and authorize entrance of vehicles or people in the
property
• Remove to remove wrong doers or trespassers from the area
• Responsible in securing all the exits, doors, windows after end of operations
• Responsible in responds to alarms by investigating and assessing the situation
• Responsible in providing assistance to people in need
• Responsible in submitting reports of daily surveillance daily activity and
important occurrences

Qualifications:

• Male
• Preferably 24 years old and above
• Surveillance and reporting skills
• With a clean record (Preferably include NBI or Police Clearance)
• With License to use firearms
• Excellent emotional control

1.3.16 Logistics Officer

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The Logistics officer plans framework responsible for making sure products reach their
destinations safely, securely, and on-time.

Duties and Responsibilities

• Plan warehouses and distribution centers for efficiency in both operations and
capacity
• Organize transportation activities, including storage of goods, managing
information accrued from point of origin to delivery, orchestrating
transportation movements, and arranging for services as necessary
• Coordinate and track movement of goods through logistic pathways
• Execute logistics plan to move products and packages to reach destinations on
schedule
• Review freight rates and other transportation costs to keep working costs low
• Maintains quality throughout the logistic processes
Qualifications:

• Male
• 25 years old and above
• Strong time management skills
• Understanding of transportation limitations and regulations
• Must possess good Driving Skills with Driver’s License

1.3.17 Production Workers

Production workers are involved in the production of all manufacturing activities by

operating and monitoring the processes needed to ensure quality made on time.

Duties and Responsibilities:

• Feed raw materials into production machinery

• Monitor the production process
• Store goods and raw materials properly in our warehouse
• Maintain work areas and equipment

Qualifications:

• Female/Male
• At least 20-26 years old and above
• At least high school graduate
• Ability to work quickly and methodically
• Ability to concentrate while doing repetitive task

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1.3.18 Delivery Driver

The delivery driver is responsible for ensuring timely delivery of goods to predetermined
customers on specific routes, reviewing orders prior to delivery, loading and unloading
trucks and providing exceptional customer service to the client base.

Duties and Responsibilities

• Use route navigation apps and knowledge of area to deliver packages to

customers in time
• Interact with customers in a professional manner
• Work occasional evenings and weekends
• Complete daily maintenance checks on delivery van/truck and notify manager of
any issues
• Drive in inclement weather
• Maintain electronic logs to track routes and deliveries

Qualifications:

• Minimum of one (1) year driving experience within 30-mile radius of store
• Ability to manage time and routes for a streamlined delivery experience
• Strength to lift up to 70 pounds plus bending and twisting
• Work well independently
• Open and transparent communication
• Familiarity with GPS devices or map apps
• Must possess good Driving Skills with Driver’s License

1.4 PROJECT TIME TABLE

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Table 1.2 Time Table

Target Date
Particulars From To No. of Weeks
Studying Phase June 08,2018 March 08,2019 40
Negotiating Phase February 01, 2019 February 28,2019 4
Building and Facility March 08,2019 October 08,2019 28
Purchasing Phase September 08,2019 October 08,2019 4
Hiring Phase September 08,2019 October 08,2019 4
Permit & Licensing Phase September 08,2019 November 08,2019 8
Seminar and Training/ October 09,2019 November 09,2019 4
Workshop Phase
Sample Clothes Exposure November 10,2019 January 07,2020 8
Phase
Grand Opening January 08,2020 - -
Total number of weeks 100

Table 1.2 shows the time frame of activities. The firm needs about 100 weeks in order to
prepare the firms and its personnel before its Grand Opening on January 08, 2020.

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1.5 GANTT CHART OF ACTIVITIES

Table 1.3 Gantt Chart

Year 2018
Month January February March April May June July AugustSeptember OctoberNovemberDecember
Week 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Studying Phas e
Negotiating Phas e
Buil ding and Faci li ty
Purchas ing Phase
Hiri ng Phas e
Permi t & Licens ing Phase
Seminar and Training/ Workshop Phase
Sample Cl othes Expos ure Phas e
Grand Opening
Year 2019
Month January February March April May June July AugustSeptember OctoberNovemberDecember
Week 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Studying Phas e
Negotiating Phas e
Buil ding and Faci li ty
Purchas ing Phase
Hiri ng Phas e
Permi t & Licens ing Phase
Seminar and Training/ Workshop Phase
Sample Cl othes Expos ure Phas e
Grand Opening
Year 2020
Month January February March April May June July AugustSeptember OctoberNovemberDecember
Week 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Studying Phas e
Negotiating Phas e
Buil ding and Faci li ty
Purchas ing Phase
Hiri ng Phas e
Permi t & Licens ing Phase
Seminar and Training/ Workshop Phase
Sample Cl othes Expos ure Phas e
Grand Opening
Table 1.3 shows the time covered in accomplishing the study. The study starts on the 2nd week of June 2018 and ends on the 2nd week of January 2

Table 1.3 shows the time covered in accomplishing the study. The study starts on the 2nd week of June 2018 and ends on the 2nd
week of January 2020.

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2.1 PROJECT DESCRIPTION

ManiTela is a cloth, which is a combination of the words Mani (Peanut) and Tela (Cloth)
comprises of 100% peanut shell fiber, made available in varieties of color and sizes of
your own choice, and best use for making dresses perfect for special occasions like
wedding and Philippine festivals, school and government events, and etc. Ideal in
today's fashion trends that it gives you a classic design but with a modern twist. This
product is durable because as they say, “The more fiber there is, the more likely it’s
going to last longer.” and it is pocket-friendly that every Filipino would surely love.

Compared with other existing similar fabrics, ManiTela is a cloth that outstands with its
features that are: aesthetically pleasing, longer life span, lightweight, cozy, finer texture
and the thickness of the thread are uniformly weaved unlike other fabrics.

2.2 TARGET MARKET

2.2.1 Local Area

The target area of the ManiTela will be Zamboanga City with a total number of
53 clothiers.

2.2.2 Customer

 Local Clothiers

The target market of the ManiTela will be the clothiers which sell and deal
the clothing textile. There are 53 clothiers in Zamboanga City.

 Direct Customers

The customers may be the tailoring shops which process the textiles into a
cloth as a finished product and the one who will wear the finished products.

 Events

One best way to showcase the masterpiece of the company is by engaging

through events, with the participants of the listed events, as well as the
employees whose uniforms are made of fabric that ManiTela produce.

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Events/Customers Formal Attires Involve
Flores De Mayo Sagala Dresses, Barong Tagalog
Mascota De Zamboanga Mascota
Zamboanga Hermosa Streetdance Streetdance Costume, Filipiniana
Buwan ng Wika Filipiniana, Barong Tagalog
Government Employees Uniform

Table 2.1 shows the events in Zamboanga wherein the kind of fabrics
used are the ones that ManiTela manufacture. One best way to make
noise in the market is by knowing and targeting the events, as well as
the employees under the government since they are in the top list of
those who really patronize this type of fabrics for daily use.

2.3 DEMAND

Table 2.2 Historical Demand of Barong Textiles in Zamboanga City

Historical Demand
Year Demand (Rolls)
2014 11,252
2015 12,940
2016 14,881
2017 17,113
2018 19,680

Table 2.2 shows the historical demand for Barong Textiles) in

Zamboanga City from year 2014-2018 based from the local survey of
clothier industries in Zamboanga City.

Table 2.3 Demand of Barong Textiles

Demand of barong textiles (in rolls)

Piña 6,300
Abaca 3,360
Polyester 10,020
Total 19,680

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Table 2.3 shows the demand of barong textiles based on the results of
survey for the year 2018. The demand for polyester is higher than both
Abaca and Piña since it is the least costly as a means of use for barong
tagalog. See annex table 6.2 for the computation.
Table 2.4 Projected Demand of Textiles (Clothing) in Zamboanga City

Projected Demand
Year Demand (Rolls)
2020 26,027
2021 29,931
2022 34,420
2023 39,584
2024 45,521

Table 2.4 shows the projected demand for Barong Textiles in

Zamboanga City from year 2020-2024 which is based from the annual
growth rate of 15%.

2.4 SUPPLY

Table 2.5 Historical Supply of Barong Textiles in Zamboanga City

Historical Supply
Year Supply (Rolls)
2014 15,193
2015 17,325
2016 19,757
2017 22,530
2018 25,692

Table 2.5 shows the historical supply of Barong Textiles in Zamboanga City
from year 2014-2018 based from the conducted survey in the textile
industries of Zamboanga City.

Table 2.6 Supply of Barong Textiles

Supply of barong textiles (in rolls)

Piña 8,208
Abaca 4,344
Polyester 13,140
Total 25,692

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Table 2.6 shows the supply of barong textiles based on the results of survey
for the year 2018. The supply for polyester is higher than both Abaca and
Piña since it is the least costly as a means of use for barong tagalog. See
annex table 6.4 for the computation.

Table 2.7 Projected Supply of Barong Textiles in Zamboanga City

Projected Supply
Year Supply (Rolls)
2020 33,410
2021 38,099
2022 43,446
2023 49,544
2024 56,497

Table 2.7 shows the historical supply for Barong Textiles in Zamboanga City
from year 2020-2024 based from the annual growth rate of 14.035%.

2.5 DEMAND – SUPPLY ANALYSIS OF ManiTela

In Zamboanga City, ManiTela is a new entrant in the textile market.

Table 2.8 Demand – Supply Analysis

Demand-Supply Analysis
Year Demand Supply Excess
Supply
2020 26,027 33,410 7,383
2021 29,931 38,099 8,168
2022 34,420 43,446 9,026
2023 39,584 49,544 9,960
2024 45,521 56,497 10,976
Average 35,097 44,199 9,103
Percentage 100% 126% 26%

Table 2.8 shows the demand and supply analysis of Barong Textiles. The data
shows that the average number of supply for textile (clothing) is greater than its
demand by 26%. It is mainly due to the ordering of clothier industries in
Zamboanga City to have a display and allowance supply to avoid stock out (see
Annex for complete breakdown).

Since the product is new and provides better alternative to the existing textile,
the company can have a better position in market even though there is excess

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supply. It needs a comprehensive marketing programs with specified budget (see

table no. 14) to really capture the market.

2.6 PRICE STUDY

Table 2.9 Selling Price of ManiTela

SELLING PRICE OF Manitela

Particulars Costs
Direct Material 10,410.00
Direct Labor 3,207.46
Prime Cost 13,617.46
Overhead:
Indirect Labor 4,120.69
Electricity 2,619.40
Water 248.57
Fuel 430.00
Insurance 1,354.17
Safety Gears 337.08
Packaging Expense 21.25
Repair and Maintenance 236.46
Total Overhead Cost 9,367.62
Total Production Cost 22,985.08
Selling Expense 2,054.79
Total 25,039.87
Daily Output Production 24.00
Cost per unit 1,043.33
Mark Up (270%) 2,816.99
3,860.31
Selling Price 3,860.00

Table 2.9 shows the selling price of ManiTela with a mark-up of 270%

Table 2.10 Projected Selling Price

Actual Cost and Selling Price
Year Actual Cost Selling Price
2020 1,043.33 3,860
2021 1,089.23 4,030
2022 1,137.16 4,207
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Table 2.10 shows that there is an increase of 4% in the selling price of Textiles
(Clothing) annually.

2.7 PRESENT SUPPLIER / COMPETITION

Table 2.11 Supply of Textiles for Zamboanga City

Supply for Textiles (clothing)

Area Supply (Rolls)
Local (Zamboanga City) 25,692
Table 2.11 shows the supply of Textiles (Clothing) for Zamboanga city. The
data is based from the conducted survey in the textile industries of
Zamboanga City

2.8 Projected Sales

Table 2.12 Monthly Projected Sales

Monthly Projected Sales

Year Monthly Price/Roll Monthly Gross
Production (Php) Sales
(Rolls) (Php)
2020 408 3,860.00 1,574,880.00
2021 432 4,030.00 1,740,960.00
2022 456 4,207.00 1,918,392.00
2023 480 4,392.00 2,108,160.00
2024 480 4,586.00 2,201,280.00

Table 2.12 shows the projected monthly production and monthly gross sales
of ManiTela for the year 2020-2024.

Table 2.13 Annual Projected Sales

Annual Projected Sales

Year Annual Price/ Annual Gross Sales
Production Roll (Php)
(Rolls) (Php)
2020 4896 3,860.00 18,898,560.00

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2021 5184 4,030.00 20,891,520.00

2022 5472 4,207.00 23,020,704.00
2023 5760 4,392.00 25,297,920.00
2024 5760 4,586.00 26,415,360.00
Table 2.13 shows the projected annual production and annual gross sales of
ManiTela for the year 2020-2024
2.9 MARKETING TECHNIQUES / STRATEGIES

Today’s business world is far more different from how it was years ago and will certainly
be different in the next years. As they say, “Change is constant – life is a series of natural
and spontaneous changes.” Same goes in the business world, it changes so swiftly that
people need to adapt and that the businesses should strive to become irreplaceable in
order to maintain its competitive position, to create a room for expansion, growth, and
profit and to maintain to meet the demand and needs of the customers.

To be successful in this aggressive industry, here is the list of marketing

techniques/strategies to help achieving the goals and objectives of the company.

2.9.1 Establish Physical Store

Allows the customers to personally see the products up close, instant

satisfaction since customers will be able to feel, touch and try on the items. The
products that will be displayed in the store are the best-selling pieces to attract
more customers.

2.9.1 Contests / Fashion Shows

Invite the local community residents to participate in a contest to model (e.g.

Fashion Shows) where they show their best get-ups wearing or using the
company’s clothing products and a chance to win exciting prizes. This is a great
way to be noticed by locals and the press. The company can also tie up with a
local celebration in holding these events.

2.9.2 Participating in Expositions, Fashion Gatherings and Forums

Actively participating in these events is a great chance to meet influencers and

be recognized within the fashion industry.

2.9.3 Work with Influencers

Having influencers (most followed people on social media) to feature and

share their selfies and videos using and wearing the items is one of the most
effective strategies so far to spreading the trendy collection of the company’s
clothing products because people will be able to see how the company’s
clothing looks real on people. As an exchange, the influencers will be offered
free products in every new collection.

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2.9.4 Social Media Channels: Facebook, Instagram, and YouTube

These channels offer a free but powerful station to promote both business
offerings and events. People tend to spend more time engaging activities in
social media, thus, it can surely provide maximum exposure and bigger
marketing extent for the company’s business.

2.9.5 Constant Contact with Regular Clients

Regularly reach clients with latest fashion trends. Keep in touch with them to
make sure that they will always remember the company and its products. This
way the company are committed to continuously providing the best possible
customer experience.

2.9.6 Creating Look books and Flyers

One way to attract clients and customers is through look books. This helps to
give the people ideas how to style outfits and what the latest fashions are.
Most importantly, the look books should contain or show the versatility of the
company’s clothing products that it can fit and relate in every person’s
personal style.

Flyer is another medium to advertise events and products of the company.

This is also one way to inform the community besides social media that the
events and products of the company do exist.

2.9.7 Local Press Coverage

Being featured in local media could reach larger audience and can catch
attention and interest of the company’s target customers. The company
should have a pitch with all the information about the products and must be
equipped to meet the possible rush in demand that will hopefully follow.

2.9.8 Hire Expert/Pro in charge in Marketing Content

The in charge in overall marketing strategies – the one responsible creating

advertising ideas or in other words, the brain of the creative marketing
campaign.

2.9.9 Investing in Causes

It is a must that the company shows care to the customers by investing in

their causes. It is very important to give back to the community and donate to
charities.

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2.10 MARKETING EXPENSES

Table 2.14 Marketing Expense of ManiTela

ADVERTISING EXPENSE
Annual Cost
Year Advertisement Exposure (Php)
Social Media Demonstration and events about the company 150,000.00
Fashion Show Malls in Zamboanga City 450,000.00
2020 5000 printed copies for fliers and 500 printed copies
Print Media for lookbooks 150,000.00
Sub-Total 750,000.00
Social Media Demonstration and events about the company 180,000.00
Fashion Show Malls in Zamboanga City 500,000.00
5000 printed copies for fliers and 500 printed copies
2021
Print Media for lookbooks 225,000.00
Surveys 5000 printed copies 50,000.00
Sub-Total 955,000.00
Social Media Demonstration and events about the company 200,000.00
Fashion Show Malls in Zamboanga City 530,000.00
5000 printed copies for fliers and 500 printed copies
Print Media for lookbooks 300,000.00
2022
Surveys 5000 printed copies 75,000.00
Local TV
Advertisement Features 15 seconds daily every other week 600,000.00
Sub-Total 1,705,000.00
Social Media Demonstration and events about the company 220,000.00
Fashion Show Malls in Zamboanga City 550,000.00
5000 printed copies for fliers and 500 printed copies
Print Media for lookbooks 375,000.00
2023
Surveys 5000 printed copies 100,000.00
Local TV
Advertisement Features 15 seconds daily every other week 630,000.00
Sub-Total 1,875,000.00
Social Media Demonstration and events about the company 250,000.00
Fashion Show Malls in Zamboanga City 600,000.00
Print Media 5000 printed copies for fliers and 500 printed copies 450,000.00
for lookbooks
Surveys 5000 printed copies 125,000.00
2024
Local TV Features 15 seconds daily every other week 650,000.00
Advertisement

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Sub-Total 2,075,000.00
Total 7,360,000.00

Table 2.14 shows the total cost of promotional strategies for the year 2020-2024.

2.11 PRODUCT IMPROVEMENT

The manufacturing company will continuously produce their product that serves as a
daily use or needs. The company can help by supplying as new type of textile in
Zamboanga City.

2.11.1 Additional variety of colors – To increase the appeal of the products and to
cater the different tastes of the customers. Thus, the company will
produce/manufacture different varieties of color.

2.11.2 Variety of sizes – The company will produce cloth in many sizes, including
custom sizes according to the customer’s preferences.

2.12 DISTRIBUTION CHANNEL

Figure 2.1 Expected Distribution of ManiTela

COMPANY

LOCAL CLOTHIERS CUSTOMERS

Figure 2.1 shows the expected distribution of ManiTela within Zamboanga City. The
clothiers distribute their textiles directly to its customer and tailoring processes the
textiles into a cloth.

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3.1 PRODUCT DESCRIPTION

Cloth has been an integral part of everyday life since prehistoric time which
serves as a method to hide the particular areas of a person's body. With the
demand, the researchers had conceptualized an idea in producing a cloth from a
peanut shell which is considered as a waste and fertilizer. The ManiTela focuses
on the production of textiles for clothing that can also be used in the fashion
industry.
ManiTela is a cloth made from the peanut shell fiber that can be weaved and
sewed into different designs. With the existence of cloth from other sources,
ManiTela can be a great alternative that can compete with the quality of
commercialized ones. It has a quality that could satisfy the users when it comes
to comfortability, smoothness, and it’s affordable. It can also be distributed in
different or various colors. Alongside with the production, this isn’t just
beneficiary for the researchers and proponents but for the economy and
agriculture as well.

Dimensions Standard ManiTela

1. Length 36 meters 15 meters

2. Width 1.5 meters 1.6 meters

Image shows a semi-final look of

cloth out of peanut shell fiber since the product is still a working prototype. The cloth
may appear in various color and style.

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3.2 MANUFACTURING PROCESS

1. GRINDING & SEPARATING

A grinding machine, often shortened to grinder, is any of various power
tools or machine tools used for grinding, which is a type of machining using
an abrasive wheel as the cutting tool. It is a process where it grinds the peanut
shells to small pieces. After grinding, separating process occurs; where the
peanut shell fibers are being separated from the peanut shell.
2. CLEANING
Cleaning is the process of removing unwanted substances from peanut shell
fibers. Cleaning occurs in many different contexts and uses a cleaning machine.
3. MOULDING
The moulding machine gathers the peanut shells fibers that are already softened
and cleaned in a square like shape moulder. Then, the square like formation of
fibers will be pressed so that it will be compressed. During this process the
application of different dyes are also applied to the moulded fiber.
4. DRYING
After the formation of the moulded fiber it will be delivered to this stage which is
drying. The moulded fiber will be further dried to remove the liquid substances
and moisture. This process is crucial for the next stage since this process
maintains the square like formation of the fiber.
5. ROLLING
The dried square-like formation of fibers will be placed between two rollers so
that it will be flattened (to maintain its shape and to maintain the density of
fibers). The expected output will have a variety of colours with constant
dimension in rolls.

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3.3 QUALITATIVE FLOW DIAGRAM OF A PEANUT SHELL FIBER CLOTH

INPUT PROCESS OUTPUT

Peanut Shell Grinding & Fertilizer

Separating (peanut
shell)

Sodium Cleaning
Hydroxide

Dye Moulding

Drying

ManiTela
Rolling

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Figure 3.1 shows the qualitative flow diagram in manufacturing ManiTela. The raw material will
be processed through 5 machines before achieving the desired product with the desired quality

3.4 QUANTITATIVE FLOW DIAGRAM OF A PEANUT SHELL FIBER CLOTH

INPUT PROCESS OUTPUT

Peanut Shell Grinding & Fertilizer

(6,760 kg) Separating (peanut
(6,760 kg) shell)
(6,422 kg)

Sodium Cleaning
Hydroxide (338 kg)
(8 kg)

Moulding
Dye
(338 kg)
(80 oz)

Drying
(338 kg)

ManiTela
Rolling 24 rolls
(338 kg) (14.083 kg/roll)

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Figure 3.2 shows the quantitative flow diagram of ManiTela. The raw material will be processed
through 5 machines before achieving the desired product with the desired quality.

3.5 PLANT SIZE AND PRODUCTION SCHEDULE

The company will start with a production of 85% rated capacity and will increase the
rated capacity by 5% yearly through the following years. It operates for 8 hours a day, 5
days a week and a total of 240 working days.

Table 3.1 Plant Size and Production Schedule of ManiTela

Capacity
Utilization Rated Annual Production
Year (Rolls) Capacity Volume (Rolls)
2020 5,760 85% 4,896
2021 5,760 90% 5,184
2022 5,760 95% 5,472
2023 5,760 100% 5,760
2024 5,760 100% 5,760

Table 3.1 shows the production of ManiTela based on the daily capability of production.
The company will start with 85% rated capacity for the testing phase. Through the
succeeding years, the company will increment the rated capacity by 5% annually. The
company started with an 85% rated capacity since the company has an advantage in
terms of local transportation. It didn’t start with a full rated capacity so that workers can
adjust to the new type of production.

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3.6 MACHINERIES AND EQUIPMENT, APPLIANCES, TOOLS AND SUPPLIES

Table 3.2 Machineries and Equipment, Appliances, Tools and Supplies of ManiTela
(Production)

Total Cost
Machines Quantity Cost ($) (Php)
Grinding and Separating 1 1,500.00 79,500.00
Cleaning 1 900.00 47,700.00
Molding 1 800.00 42,400.00
Drying 1 1,500.00 79,500.00
Rolling 1 1,000.00 53,000.00
Exhaust Fan 2 1,100.00 58,300.00
Sub-total 360,400
Fixtures
Toilet Bowl 4 4,920.00 19,680.00
Shower 4 3,600.00 14,400.00
Sink 2 3,600.00 7,200.00
Towl Holder 4 1,980.00 7,920.00
Tissue Holder 4 824.00 3,296.00
Locker 2 22,000.00 44,000.00
Table 2 3,300.00 6,600.00
Clock 1 22000 220.00
Sub-total 103,316.00
Safety Gear
Face Mask 30 1,200.00 36,000.00
Gloves 30 4,500.00 9,000.00
Hairnet 30 450.00 13,500.00
Sub-total 58,500.00

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Safety Equipment
Fire Extinguisher 4 5,600.00 22,400.00
Sub-total 22,400.00
Total 544,616.00

Table 3.2 shows the total cost of machines and equipment for the manufacturing area.

3.7 ADMINISTRATIVE AND OFFICE SUPPLIES, TOOLS AND EQUIPMENT

Table 3.3 Administrative and Office Supplies, Tools and Equipment

Total Cost
Quantity Cost (Php) (Php)
Equipment
Computer 14 12,000.00 168,000.00
Printer 4 3,700.00 14,800.00
Air condition 2 14,800.00 29,600.00
Sub-total 212,400.00
Safety Equipment
Fire Extinguisher 2 1,400.00 2,800.00
Sub-total 2,800.00
Office Supplies
Stapler 7 150.00 1,050.00
Puncher 7 110.00 770.00
Scissors 7 95.00 665.00
White Board 4 395.00 1,580.00
Calculator 7 450.00 3,150.00
Tape 7 200.00 1,400.00
Ink Set 8 75.00 600.00
Marker Pen 28 120.00 3,360.00
Ball Pen 50 56.00 280.00
Envelope 280 5.00 1,400.00
Bond paper Ream 16 210.00 3,360.00
Furniture Desk 14 2,650.00 37,100.00
Ergonomic Chair 14 2,450.00 34,300.00
Filing Cabinet 4 5,500.00 22,000.00
Monoblock Chair 14 250.00 3,500.00

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Trashcan 7 270.00 1,890.00

Couch 1 13,000.00 13,000.00
Sub-total 129,405.00
Total 344,605.00

Table 3.3 shows the total cost of administrative and office supplies, tools and equipment

3.8 PLANT LOCATION

Figure 3.3 Plant Location of ManiTela

Plant Location Divisoria, Zamboanga City

Plant size 600 square meters

Cost per square meter Php 2,000.00

Figure 3.3 shows the proposed location in manufacturing ManiTela. The plant is located
at Divisoria, Zamboanga City and it is near the Integrated Bus Terminal. The total
estimated cost for the land is Php 1,200,000.00

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Criteria for Choosing a Plant Location

The factors to be considered for the location of a site for a plant are as follows:

1. Transportation Facilities

The plant site chosen by the company is close to highways and other
infrastructures that makes the location ideal. The way of transport for raw
materials and products are considered to be as easy and fast as one-way
directed via land truck.

2. Land local community considerations

Eastern part of Zamboanga City is a healthy community that could protect and
improve the productivity of the company. Considerations for the chosen
location of the plant will be further examined so that no risk will be imposed to
the community.

3. Safety

The plant site which is located at the Eastern part of City is girded with
checkpoints and is just kilometers away from the Police Station Office of the
barangay thus making the safety of employees and employers well secured.

4. Electricity

Since the area is being promoted for commercialized establishment, enough

amount of energy will be provided for everyday production.

5. Supply of Labor

Choosing the location will a give great opportunity for the individuals living
near the area. Since most of the establishments are located in the Western part

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of the city, this will serve as new way of earning for living for the employers
considering the less expense for transportation.

3.9 PLANT LAYOUT

Figure 3.4 shows the floor plan for the manufacturing area of ManiTela. Parking
Area will be provided for the loading and unloading of raw materials and finished
products.

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3.10 DEPRECIATION OF EQUIPMENT, FURNITURE AND FIXTURES

Table 3.4 Depreciation of Equipment, Furniture and Fixtures

DEPRECIATION OF EQUIPMENT, FURNITURE AND FIXTURES
Item Quantity Costs Total Costs Useful years Salvage Value Annual Depreciation
Grinder and Separator 1 79,500.00 79,500.00 20 7,950.00 3,577.50
Cleaning 1 47,700.00 47,700.00 20 4,770.00 2,146.50
Molding 1 42,400.00 42,400.00 20 4,240.00 1,908.00
Drying 1 79,500.00 79,500.00 20 7,950.00 3,577.50
Rolling 1 53,000.00 53,000.00 20 5,300.00 2,385.00
Exhaust Fan 2 29,150.00 58,300.00 10 5,830.00 5,247.00
Toilet Bowl 4 4,920.00 19,680.00 20 1,968.00 885.60
Shower 4 3,600.00 14,400.00 20 1,440.00 648.00
Sink 2 3,600.00 7,200.00 20 720.00 324.00
Towel Holder 4 1,980.00 7,920.00 15 792.00 475.20
Tissue Holder 4 824.00 3,296.00 15 329.60 197.76
Locker 2 22,000.00 44,000.00 20 4,400.00 1,980.00
Table 2 3,300.00 6,600.00 8 660.00 742.50
Clock 1 220.00 220.00 20 22.00 9.90
Total 24,104.46

Table 3.4 shows the Total Depreciation of Manufacturing machine, tools, equipment,
furniture and fixtures.

3.11 RAW MATERIALS FOR THE PRODUCTION OF ManiTela

Table 3.5 Raw Material Requirements for ManiTela’s Production

Daily
Produc Daily Monthly Annual
Raw Price tion Production Production Production Cost
Materials Quantity Unit (Php) (Rolls) Cost (Php) Cost (Php) (Php)
Peanut Shell 104 Sack 50 24 5,200.00 104,000.00 1,248,000.00
Sodium
Hydroxide 8 Kg 215 104 1,720.00 34,400.00 412,800.00

Dye 10 8Oz 349 24 3,490.00 69,800.00 837,600.00

Total 10,410.00 208,200.00 2,498,400.00.00

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Table 3.5 shows the raw material requirements for ManiTela. The company will require
104 sacks of peanut shells (a total of 6,760kg) to manufacture 24 rolls of Barong textile
with the dimensions of 1.6x15 meters.

Table 3.6 List of Suppliers

Raw Materials Quantity Unit Suppliers

Peanut Shell 104 Sack Ipil Zamboanga Sibugay, Liloy Zamboanga
Del Norte, Labason Zamboanga Del Norte
Sodium Hydroxide 8 Kg Groceries and Stores
Dye 10 8Oz Department Stores

Table 3.6 shows the list of suppliers for the raw materials needed to produce the product
of the company.

The supply for peanut shell can be assured since the millings under the places stated are
the ones collecting peanuts shells all over the peninsula including Iloilo. Note that every
place stated under the suppliers of peanut shell has more than one (1) millings.

3.12 UTILITIES

3.12.1 Water

The company engages in a non-food manufacturing, but the consumption of

water is still a must. Water is the basic utility in producing any products to
maintain the cleanliness of the products as well as the facility. Zamboanga City
Water District will be the primary source in providing the water for the plant.

3.12.2 Power

The company focuses on automated production in manufacturing of ManiTela,

so the use of electricity is significant to the company. The company’s machines
and equipment will use the electricity of ZAMCELCO.

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Table 3.7 Electricity Consumption of the Manufacturing Area

Kw/ Hours Daily Cost Monthly Annual Cost

Appliances Quantity H used Rate (Php) Cost (Php) (Php)
Grind & Separate 1 7.7 8 9.1002 579.70 11,593.99 139,127.79

Cleaning 1 5 8 9.1002 376.43 7,528.56 90,342.72

Molding 1 8.5 8 9.1002 639.93 12,798.55 153,582.62

Drying 1 8.5 8 9.1002 639.93 12,798.55 153,582.62

Rolling 1 5.5 8 9.1002 414.07 8,281.42 99,376.99

LED Lights 10 0.008 8 9.1002 6.02 120.46 1,445.48

Exhaust Fan 2 0.35 8 9.1002 52.70 1,054.00 12,647.98

Total 2,708.78 54,175.52 650,106.21

Table 3.7 shows the total consumption of electricity in the manufacturing area.

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Table 3.8 Electricity Consumption of the Administrative Office

Hours Daily Cost Monthly Annual Cost

Appliances Quantity Kw/H used Rate (Php) Cost (Php) (Php)
Computer 14 0.2 8 9.1002 203.84 4,215.99 50,591.92
Printer 4 0.12 3 9.1002 13.55 271.03 3,252.34
Aircon 2 3.5 8 9.1002 527.00 10,539.98 126,479.81
LED Lights 6 0.008 8 9.1002 3.61 72.27 867.29
Total 754.96 15,099.28 181,191.36

Table 3.8 shows the total consumption of electricity in the administrative office.

Table 3.9 Fuel Expense

Annual
Item Use Quantity Cost/Liter Liter/day Daily cost (Php) cost (Php)
Vehicle Transportation 2 43 5 430.00 103,200.00

Table 3.9 shows the fuel expense of the company used by the vehicles for the delivery of
finished goods and gathering of raw materials.

Table 3.10 Water Consumption

Consumption Daily Cost Monthly cost Annual cost

(m³) Cost per m³ (Php) (Php) (Php)
Manufacturing area
Facility 5 53.6957 268.48 5,369.57 64,434.84
Sub-total 268.48 5,369.57 64,434.84
Administrative
Office 1 53.6957 53.70 1,073.91 12,886.97
Sub-total 53.70 1,073.91 12,886.97
Total 322.17 6,443.48 77,321.81
Table 3.10 shows the total consumption of water for the manufacturing and
administrative area.

Table 3.11 Communication Expense

Internet with telephone

Monthly Cost (Php) Annual Cost (Php)

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Internet 1,699 20,388.00

Total 20,388.00

Table 3.11 shows the total expense for the communication of the company towards the
suppliers and customers.

3.13 WASTE MANAGEMENT

Implementation of waste management in a manufacturing plant is important. The main

reason for waste management is to protect the environment and for the health and
safety of the population. There are wastes that can be hazardous and can pollute the
environment. Improper waste management execution can cause pollution to land and
air which can harm humans and animals.

Implementing good waste management cannot only protect the environment but can
be useful to any businesses- It can enhance the business reputation, energy efficiency,
cost savings, resources recovery, and workplace safety.

COMPANY

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Figure 3.5 shows how the Manufacturing and Administrative office area disposes its
waste. The waste water will be directed to the sewage and peanut shells are
accumulated after production because it can be sold as a byproduct (fertilizer) for the
company.

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3.14 PRODUCTION COST

Table 3.12 Production Costs of ManiTela

Total Production Cost of Manitela

Particulars Costs
Direct Material 10,410.00
Direct Labor 3,207.46
Prime Cost 13,617.46
Overhead:
Indirect Labor 4,120.69
Electricity 2,619.40
Water 248.57
Fuel 430.00
Insurance 1,354.17
Safety Gears 337.08
Packaging Expense 21.25
Repair and Maintenance 236.46
Total Overhead Cost 9,367.62
Total Production Cost 22,985.08

Table 3.12 shows the total daily cost for the production of twenty-four (24) rolls of
ManiTela.

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3.15 LABOR REQUIREMENT

ManiTela will operate 8 hours a day, 5 days a week and with a total of 240 working days.
The required personnel for the proposed project will employ a total of thirty (30)
personnel.

Table 3.13Administrative Personnel

Annual Salary
Admin Personnel No. of Personnel Monthly Salary (Php) (Php)
Manager 1 35,000.00 420,000.00
Secretary 1 20,000.00 240,000.00
Accounting Supervisor 1 26,000.00 312,000.00
Accounting Clerk 1 15,000.00 180,000.00
Admin and Finance Supervisor 1 26,000.00 312,000.00
Admin and Finance Clerk 1 15,000.00 180,000.00
Human Resource Officer 1 20,000.00 240,000.00
Sales and Marketing Supervisor 1 25,000.00 300,000.00
Sales and Marketing Specialist 1 20,000.00 240,000.00
Sales and Marketing Clerk 1 16,000.00 192,000.00
Bookkeeper 1 16,000.00 192,000.00
Purchaser 1 10,000.00 120,000.00
Logistics Officer 1 12,000.00 144,000.00
Driver 2 16,000.00 192,000.00
Security Officer 2 24,000.00 288,000.00
Total 17 296,000.00 3,552,000.00

Table 3.13 shows the required number of administration personnel to operate the
production of ManiTela.

Table 3.14 Direct Labor

Annual Salary
Position No. of Worker Monthly Salary (Php) (Php)
Production Workers 9 57,600.00 691,200.00
Total 9 57,600.00 691,200.00

Table 3.14 shows the required number of production workers to operate the facility.

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Table 3.15 Indirect Labor

Annual Salary
Position No. of Worker Monthly Salary (Php) (Php)
Production Supervisor 1 25,000.00 300,000.00
Quality Control Inspector 1 20,000.00 240,000.00
Maintenance officer 1 15,000.00 180,000.00
Inventory Checker 1 14,000.00 168,000.00
Total 4 74,000.00 888,000.00

Table 3.15 shows the required number of indirect labor to operate the facility.

3.16 SAFETY AND MAINTENANCE

One of the important things to consider in running a business, specifically clothing

industry, is the safety of the workers especially of those who are exposed in production
area. It is necessary to take serious concern on how to deal with everything within work
parameter with all precautions. To assure the safety of workers, safety gears needed for
production and equipment needed in case of emergency will be provided.

To assess and manage risks, it is the employers and management team’s responsibility
to decide what precautions are needed, ensure the safety gears are worn, assure
control measures are used and maintained, and safety procedures are followed. Under
the Occupational Safety and Health Act’s law, it is the duty of employers to provide a
safe workplace for their employees such as mechanical or chemical accidents, excessive
heat or cold environments and etc.

Table 3.16 Safety Gears

Safety Gears Quantity (Pcs) Cost (Php) Total Cost (Php) Renewal
Face Mask 15 1,200.00 18,000.00 Half a year
Gloves 15 4,500.00 67,500.00 Half a year
Hair Nets 15 450.00 6,750.00 Half a year
Total 92,250.00

Table 3.16 shows the total cost of safety gears for the nine (9) production workers.

Table 3.17 Safety Equipment

Safety
Equipment Quantity (Pcs) Cost (Php) Total Cost (Php) Renewal
Fire Extinguisher 4 5,600.00 22,400.00 Annually
Total 22,400.00

Table 3.17 shows the total cost of safety equipment for the production workers.

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ManiTela company aims to provide quality products which gives customer satisfaction. Its goal is
to generate income and produce more jobs for the locals, most especially the indigenous people.
The company also encourages self-discipline and to promote Filipino cultural heritage by
producing an eco-friendly product which is already considered as a waste material.

ManiTela shares benefits with:

 Income
ManiTela pays an important portion of all taxes in the City, which includes income tax and
property tax. ManiTela being established in the local economy, can help increase tax income
for the local government, taking in more money to improve public services, road repairs,
develop public schools, etc.

 Employment
One of the advantages of ManiTela being established in the City is the boost in employment.
Employing people in the local community can create word-of-mouth advertising for the
company as well, assuming that ManiTela treats the employees well enough to get positive
mentions. Through local employment, it develops a sense of community, which can help
heighten the brand of the ManiTela and most importantly will help those before
unemployed indigent individuals to survive their living.

 Waste Reduction
Peanut Shells are considered as one of the major agricultural wastes in the country including
the city and peninsula of Zamboanga. ManiTela, as a fabric producer in the city, intends to
help the society by considering and using Peanut Shells as the main raw material in
producing a product; this is not just to help the society but also, at the same time, helping
the local community and indigent people through donations and is eco-saving.

 Production
ManiTela is a company that focuses not only on generating income for its beneficiaries but
also on allocating a part of the profit set aside for a special use. It is to conduct a research
that would best concentrate on growth improvement of Peanut; this is to have a longer
fiber for a better production and efficiency. Inclined with the success of the research,
ManiTela will then give an endowment to the agriculture and eminence to the supply and
tourism in the city.

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4.1 SCHEMATIC DIAGRAM

Figure 4.1 Schematic Diagram for ManiTela

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4.2 INCOME

Income is the money that ManiTela receives on a regular basis in exchange for providing goods through the invested capital. The
income is used to fund day-to-day expenditures of the company.

Table 4.1 Income Statement

INCOME STATEMENT
NOTES 2020 2021 2022 2023 2024
Gross Sales Schedule No. 29 18,996,480.00 21,000,384.00 23,141,088.00 25,430,400.00 26,547,840.00
Less: Sales Return Schedule No. 31 189,964.80 210,003.84 231,410.88 254,304.00 265,478.40
Sales Deals Schedule No. 32 377,971.20 417,813.81 460,430.82 505,989.24 528,252.76
Net Sales 18,428,544.00 20,372,566.35 22,449,246.30 24,670,106.76 25,754,108.84
Less: Cost of goods sold Schedule No. 38 5,597,002.93 5,931,481.62 6,206,550.97 6,494,781.23 6,795,845.95
Gross Profit 12,831,541.07 14,441,084.73 16,242,695.33 18,175,325.53 18,958,262.89
Less: Sales and Administrative Exp. Schedule No. 21 5,750,678.22 6,255,745.30 7,323,889.41 7,831,258.18 8,362,407.92
Amortized Pre-Operating Expense Schedule No. 12 147,600.00
Operating income 6,933,262.86 8,185,339.43 8,918,805.92 10,344,067.35 10,595,854.97
Less: Interest Expense Schedule No. 37 677,103.83 552,048.67 416,020.16 268,055.44 107,107.11
Net Profit Before Donations 6,256,159.02 7,633,290.76 8,502,785.76 10,076,011.92 10,488,747.86
Less: Donations 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00
Net Profit Before Income Tax 6,106,159.02 7,433,290.76 8,252,785.76 9,776,011.92 10,138,747.86
Less: Income Tax 1,831,847.71 2,229,987.23 2,475,835.73 2,932,803.57 3,041,624.36
VAT Schedule No. 44 1,879,206.96 2,087,577.12 2,310,347.17 2,548,771.79 2,661,360.09
NET PROFIT 2,395,104.35 3,115,726.41 3,466,602.86 4,294,436.55 4,435,763.42
PERCENTAGE 30% 11% 24% 3%

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Table 4.1 shows the projected total net profit of ManiTela from year 2020 to 2024. There is an average of 15.75% increase in Net
Profit for the next consecutive years.

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4.2.1 Income Tax

Income tax is computed based on income received. Revenues generated from

taxes constitute a major source of income for governments; the reason why the
company calculated the income tax for the given wages and salaries of workers.

Table 4.2 Corporate Income Tax

Corporate Income Tax in Php

2020 2021 2022 2023 2024
Minimum Corp.
Income Tax (MCIT) 368,570 407,451. 448,984 493,402. 515,082
2% of net sales .88 33 .93 14 .18
Normal Corp. Income
Tax (NCIT) 30% of 1,831,847 2,229,987 2,932,803 3,041,624
taxable income .71 .23 2,475,835.73 .57 .36
Applicable Corporate 1,831,847 2,229,987 2,932,803 3,041,624
Income Tax due .71 .23 2,475,835.73 .57 .36
Table 4.2 shows the basis for computation of income tax by the Bureau of
Internal Revenue (BIR) and is also the basis for the computation of income taxes
in this study.

Table 4.3 Income Tax

Income Tax in Php

2020 2021 2022 2023 2024
Income Tax 1,879,206.96 2,229,987.23 2,475,835.73 2,932,803.57 3,041,624.36
VAT 1,879,206.96 2,087,577.12 2,310,347.17 2,548,771.79 2,661,360.09

Table 4.3 shows the income tax and VAT based from income received on year
2020 to 2024.

Employees Personal Exemption and Addition of Taxes

To cover the personal, family, and living expenses of individual taxpayers, personal
exemptions are put in place and come up with a reasonable taxable base for income
taxation in the Philippines. But for any expense falling under the necessary and ordinary
expense in the conduct of trade or business or practice of profession is deductible.

Basic Personal Expense (BPE)

This is a mandatory deduction allowed to individual citizens in the Philippines regardless

of the status at the amount of P50, 000.00. This applies to all individual citizen taxpayers
engaged in trade or business, practice of professions, and employees earning
compensation income. In the computation of annual income tax for income tax return
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filling in the Philippines, this P50, 000.00 basic personal exemptions in the Philippines is
deducted from gross income.

Additional Personal Exemptions (APE)

This is a mandatory deduction of P25, 000.00 for each qualified dependent child up to
maximum of four (4) qualified dependent children in the Philippines or a maximum
amount of P100, 000.00. Hereunder are the requirements of a qualified dependent
child:

 A legitimate child, legitimated, illegitimate, or legally adopted child of the

taxpayer;
 Not more than 21 years old of age, physically or mentally incapacitated where
age will not matter;
 Living with the taxpayer. A child who is away for her/his education or vacation is
still considered living with the taxpayer;
 Dependent upon the taxpayer for chief support;
 Not gainfully employed, even if the child is employed but the taxpayer is still
supporting the child at least 51% of its living expenses.

To support the above exemptions, the taxpayer is required by the Bureau of Internal
Revenue (BIR) to file a Certificate of Tax Exemptions or BIR Form No.2305 with the
enumeration of qualified dependent children. Every additional dependent would require
filling such form.

Table 4.4 Employees Personal and Additional Exemptions

Employee Tax Exemptions

Qualified Individuals Personal Exemption (Php)
Single/Widower 50,000.00
Head of the Family 50,000.00
Married 50,000.00

Source: (efps.gov.ph)

Table 4.4 shows the tax exemptions for the employees. These exemptions are
amounts that are deducted from the gross compensation income of each employee that
are qualified individuals in the category of single/widower, head of the family and
married to which personal exemptions are given.

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From the table above, each individual taxpayer, whether single or married, shall be
allowed a basic personal exemption amounting to 50,000Php. In the case of married
individuals where only one of the spouses is deriving gross income, only such spouse shall
be allowed the personal exemption. For Additional Exemptions, a mandatory deduction
of P25, 000.00 for each qualified dependent child up to maximum of four (4) qualified
dependent children in the Philippines or a maximum amount of P100, 000.00.

4.2.2 Local Development

If people would ask where their taxes go, the answer is simple – government
services and facilities. ManiTela has a very big impact in the local government as
it is the first leading manufacturer of clothing textile in the city. So, with the
addition of the establishment of ManiTela in the City.

The company gives great contributions in the form of revenue taxes that can
definitely help in the local development such as: (1) scholarships for students,
(2) on health and nutrition, (3) on social security and welfare, (4) employment,
(5) on housing projects, (6) roads and transportation, (7) on agriculture, (8)
water supply, (9) donations and many more.

4.2.3 National Development

The concept and the creation of ManiTela is undeniably superb. From a 100%
waste material turned into a marketable unique product can surely entice
investors from all over the country even worldwide as the global market today is
embracing novelty and quality exceptional goods and services. When this will be
attained, the country’s development rate will absolutely increase. Incurring this
reality could give great credit to the progress since company’s taxes is a big help
in the national development spending through project infrastructures,
education and others.

4.2.4 Economy

With ManiTela operating locally can be considered as one of the foundations of

the economy in the City. ManiTela not only do provide valuable products to
customers but also provide local economy with taxes, employment, and build
community pride and development.

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4.3 EMPLOYMENT

Activities of ManiTela can realize distinct benefits to the local economy. ManiTela, in
turn, can realize competitive advantages by employing a local focus in terms of service
and marketing activities. Two of the major benefits in the local economy are - boost in
employment in the area and rise of the standard-of-living.

Table 4.5 PERSONNEL REQUIREMENT

Admin Personnel No. of Personnel

Manager 1
Secretary 1
Admin and Finance Supervisor 1
Sales and Marketing Supervisor 1
Production Supervisor 1
Accounting Officer 1
Human Resource Officer 1
Sales and Marketing Specialist 1
Quality Control Inspector 1
Accounting Clerk 1
Admin & Finance Clerk 1
Sales and Marketing Clerk 1
Inventory Checker 1
Logistics Officer 1
Delivery Driver 2
Purchaser 1
Security Officer 2
Production Worker 9
Total 28

Table 4.5 shows the required personnel for the proposed project which employs a total of
twenty-eight (28) personnel. The position for Bookkeeper and maintenance officer will be
outsourced for the first few years.

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Table 4.6 Labor Requirement

Administrative Labor
No. of Personnel
2020 2021 2022 2023 2024
Position
Manager 1 - - - -
Secretary 1 - - - -
Accounting Supervisor 1 - - - -
Accounting Clerk 1 - - - -
Admin and Finance Supervisor 1 - - - -
Admin and Finance Clerk 1 - - - -
Human Resource Officer 1 - - - -
Sales and Marketing Supervisor 1 - - - -
Sales and Marketing Specialist 1 - 1 1 1
Sales and Marketing Clerk 1 - - - -
Bookkeeper 0 1 - - -
Purchaser 1 - - - -
Logistics Officer 1 - - - -
Driver 2 - - - -
Security Officer 2 - - - -
Sub-total 16 1 1 1 1
Direct and Indirect Labor
Position
Production Manager 1 - - - -
Quality Control Inspector 1 - - - -
Maintenance officer 0 1 1 - -
Inventory Checker 1 - 1 - -
Production Worker 9 0 3 2 2
Sub-total 12 1 5 2 2
No. of additional workers hired 28 2 6 3 3
Total no. of workers 28 30 36 39 42
Table 4.6 shows the required labor force for ManiTela. The workers shall be treated
fairly, be provided with benefits and a safe workplace, and contribute to the City’s
unemployment insurance. Over the years, the company will hire additional workers to
increase the total rated production.

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Table 4.7 Employment Income

Administrative & Labor Salaries

Admin Personnel No. of Personnel Monthly Salary Annual Salary 2020 2021 2022 2023 2024
Ma na ger 1 35,000.00 420,000.00 420,000.00 436,800.00 454,272.00 472,442.88 491,340.60
Secreta ry 1 20,000.00 240,000.00 240,000.00 249,600.00 259,584.00 269,967.36 280,766.05

Accounting Supervis or 1 26,000.00 312,000.00 312,000.00 324,480.00 337,459.20 350,957.57 364,995.87

Accounting Cl erk 1 15,000.00 180,000.00 180,000.00 187,200.00 194,688.00 202,475.52 210,574.54

Admin a nd Fina nce

1 26,000.00 312,000.00 312,000.00 324,480.00 337,459.20 350,957.57 364,995.87
Supervis or

Admin a nd Fina nce

1 15,000.00 180,000.00 180,000.00 187,200.00 194,688.00 202,475.52 210,574.54
Clerk
Huma n Res ource
1 20,000.00 240,000.00 240,000.00 249,600.00 259,584.00 269,967.36 280,766.05
Offi cer

Sa les and Ma rketing

1 25,000.00 300,000.00 300,000.00 312,000.00 324,480.00 337,459.20 350,957.57
Supervis or

Sa les and Ma rketing

1 20,000.00 240,000.00 240,000.00 249,600.00 259,584.00 269,967.36 280,766.05
Specia lis t

Sa les and Ma rketing

1 16,000.00 192,000.00 192,000.00 199,680.00 207,667.20 215,973.89 224,612.84
Clerk
Bookkeeper 1 16,000.00 192,000.00 192,000.00 199,680.00 207,667.20 215,973.89 224,612.84
Purcha s er 1 10,000.00 120,000.00 120,000.00 124,800.00 129,792.00 134,983.68 140,383.03
Logis ti cs Offi cer 1 12,000.00 144,000.00 144,000.00 149,760.00 155,750.40 161,980.42 168,459.63
Driver 2 8,000.00 192,000.00 192,000.00 199,680.00 207,667.20 215,973.89 224,612.84
Security Offi cer 2 12,000.00 288,000.00 288,000.00 299,520.00 311,500.80 323,960.83 336,919.27
Total (Php) 276,000.00 3,552,000.00 3,360,000.00 3,694,080.00 3,841,843.20 3,995,516.93 4,155,337.61

Table 4.7 shows the different positions under sales and admin with the number of
individuals required (17 employees) and their corresponding monthly and annual
salaries. ManiTela employees are paid with their exact salary rate and benefits with
other compensations too; with these different positions requirement, ManiTela will help
increase employment rate not just locally but also nationwide.

4.3.1 Income Tax

Table 4.8 Employment Tax

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Bracket Taxable Income Per Year Income Tax Rate

1 ₱250,000 and below 0%
2 Above ₱250,000 and ₱400,000 20% of the excess over ₱250,000
3 Above ₱400,000 and ₱800,000 ₱30,000 + 25% of the excess over ₱400,000
Above ₱800,000 and
4 ₱2,000,000 ₱130,000 + 30% of the excess over ₱800,000
Above ₱2,000,000 and
5 ₱8,000,000 ₱490,000 + 32% of the excess over ₱2,000,000
₱2,410,000 + 35% of the excess over
6 Above ₱8,000,000 ₱8,000,000

Table 4.8 shows the total income and its equivalent rate for tax. As the table shows,
having a total income of ₱250,000 and below annually, there will be 0% tax rate. But if
the income is above from the stated amount, the equivalent rate for income tax will start
at 20% and will vary depending on the income per year.

Table 4.9 Job Opportunities

Registered Businesses
Transaction Type 2017 2018 % Change
New 371,995 405,660 9%
Renewal 50,133 56,967 14%
Total 422,128 462,627 10%

((Source: https://www.business.gov.ph/web/guest/business-statistics)

Table 4.9 shows the total number of registered business both with the new and renewal
type of transaction. With this implication, it just shows that a larger or big portion can
contribute to employment rate for the Filipino individual.

Table 4.10 Employment Status in the Philippines

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Employment Status
Status 2020 2021 2022 2023 2024
107,813,00 118,595,00 130,453,00
Employment 89,102,000 98,012,000 0 0 0
Unemployment 6,411,000 7,052,000 7,757,000 8,533,000 9,386,000

(Source: www.psa.gov.ph)
Table 4.10 shows the increasing data status both for employment and unemployment in
the Philippines. The data was taken from Philippines Statistics Authority for the year
2020 until 2024. The causes of unemployment in generating-income country can be
categorized in two ways: either cyclical unemployment caused by the economy being in a
recession, or the natural rate of unemployment caused by factors in labor markets, such
as government regulations regarding hiring and starting businesses.

Table 4.11 Percentage Reduction of Unemployment

Percentage Reduction of Unemployment

2020 2021 2022 2023 2024
Unemployment 6,411,000 7,052,000 7,757,000 8,533,000 9,380,000
Zamboanga ratio 0.836% 0.836% 0.836% 0.836% 0.836%
Percentage 0.052% 0.051% 0.056% 0.055% 0.054%
TablTTable 4.11 shows the breakdown of unemployment status taken from the data that shows the total
number for the whole country and was then dissected in the form of ratio specifically made to get the
percentage of unemployment in the city. With the launching of ManiTela, given the employees needed
and hired every year, there will be a reduction of unemployment in the city which is presented by
percentage. Means, ManiTela contributes to the employment status of the country as well as city. (under
employment under tax)

Table 4.12 Production Workers Salary

Direct Labor
No. of
Personne Monthly Annual
Personnel l Salary Salary 2020 2021 2022 2023 2024
Production
Workers 9 57,600.00 691,200.00 691,200.00 733,363.20 778,098.36 825,562.35 875,921.66
Total in 57,600.00 691,200.00 691,200.0 733,363.20 778,098.3 825,562.35 875,921.66

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Php 0 6

Table 4.12 shows the direct labor requirement, their monthly and annual salary of the
firm.

Indirect Labor
No. of
Personne Monthly Annual
Position l Salary Salary 2020 2021 2022 2023 2024
Production 25,000.0 300,000.0 300,000.0 316,200.0
Supervisor 1 0 0 0 0 333,274.80 351,271.64 370,240.31
Quality
Control 20,000.0 240,000.0 240,000.0 252,960.0
Inspector 1 0 0 0 0 266,619.84 281,017.31 296,192.25
Maintenanc 15,000.0 180,000.0 180,000.0 189,720.0
e officer 1 0 0 0 0 199,964.88 210,762.98 222,144.18
Inventory 14,000.0 168,000.0 168,000.0 177,072.0
Checker 1 0 0 0 0 186,633.89 196,712.12 207,334.57
888,000.0 708,000.0 935,952.0 1,039,764.0 1,095,911.3
Total in Php 0 0 0 986,493.41 5 1
Table 4.13 Indirect Labor Salary

Table 4.13 shows the monthly and annual salaries for the indirect labor workers. The
salary and wages of all the employees of ManiTela can help improve their standard of
living. It will contribute to the government through their employment income tax with
the following personal exemptions.

• Mandatory Benefits

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Mandatory benefits are required by law. They serve to provide economic security for
employees and their dependents. Also, through mandatory benefits, it could make the
employees become satisfied of being in the organization and always pushes them to
become efficient and dedicated with their work.

Table 4.14 Mandatory Benefits Particulars

Mandatory Benefits
Pag-ibig 2%
SSS 7.37%
PhilHealth 2%
Total 11.37%
Table 4.14 shows the mandatory benefits in which ManiTela is legally required to
provide the employees in addition to their salaries and wages. Mandatory benefits
include (1) Pag-ibig fund which offers its members short-term loans and access to
housing programs, (2) SSS or the Social Security System, a state-run, social insurance
program in the Philippines to workers in the private, professional, and informal sectors ,
and (3) Philhealth or the Philippine Health Insurance Corporation which ensures a
sustainable national health insurance program for all and also ensures their life safety,
and insured life as prescribed by the Labor Code of the Philippines as mandated by the
Department of Labor and Employment (DOLE).

• 13th Month Pay Bonus and Incentives

The 13th Month Pay is defined as a monetary benefit mandated by law. All employees,
from the sales and admin department to the production department are entitled of the
13th month pay bonus. This is given to all employees considering the benefits and their
commitment to the company in order to fulfil its vision to provide latest and innovative
products to the Filipino community. This is given also to ensure that the needs of the
employees are properly addressed and provided by ManiTela.

Table 4.15 Administrative Labor 13th Month Pay

Administrative Labor 13th Month Pay

2020 2021 2022 2023 2024
13th Month Pay 296,000.00 309,024.00 322,621.06 336,816.38 351,636.30
Total w/
benefits in Php 4,059,862.40 4,503,366.97 4,769,839.25 5,052,174.29 5,351,320.85

Table 4.16 Direct Labor 13th Month Pay

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Direct Labor 13th Month Pay

Tab
2020 2021 2022 2023 2024
13th Month Pay 57,600.00 61,113.60 64,841.53 68,796.86 72,993.47
Total w/
benefits in Php 827,389.44 877,310.07 930,246.15 986,380.02 1,045,905.06

Table 4.17 Indirect Labor 13th Month Pay

Indirect Labor 13th Month Pay

2020 2021 2022 2023 2024
13th Month Pay 74,000.00 77,996.00 82,207.78 86,647.00 91,325.94
Total w/ benefits 1,244,632.2
in Php 882,965.60 1,120,365.74 1,180,865.49 3 1,310,868.11

Table 4.18 Incentives

Incentives
Year Gross Sales (Php) Incentives (Php)
2020 18,996,480.00 379,929.60
2021 21,000,384.00 420,007.68
2022 23,141,088.00 462,821.76
2023 25,430,400.00 508,608.00
2024 26,547,840.00 530,956.80

Table 4.18 shows the yearly increase in gross sales and incentives given to the
employees. Incentives serves as a reward for the efforts exerted in the workplace and in
selling the products to its viable customers. 2% of the sales will be allocated as incentives
for each of the company’s employees.

4.3.2 Standard of Living

The inflation rate of commodities for goods and services, and including utilities,
is 4.4% based from Philippine Statistics Authority as of year 2019 while the
growth rate of salaries for the employees of ManiTela is given at 5.4% annually.

Table 4.19 Salary Inflation Rate

Annual Salary Inflation Rate

Projected 2020 2021 2022 2023 2024
Inflation rate 4.4% 4.4% 4.4% 4.4% 4.4%

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Salary Growth Rate 5.4% 5.4% 5.4% 5.4% 5.4%

Savings 1% 1% 1% 1% 1%

Table 4.19 shows the rate for inflation and salary growth. The growth rate of salaries for
ManiTela employees was adjusted to the percentage rate of the inflation. This is for
future purposes; the employees can still survive and cover up life’s necessities even with
the presence of increasing rate in commodities.

Table 4.20 Poverty Indices

Poverty Indices
Sector Poverty Indices (%)
Philippines 21.6
Employed population 18
Unemployed population 16.4
(Source: https://psa.gov.ph/poverty-press-releases)

Table 4.20 shows the poverty indices of the Philippines both for the employed and
unemployed sector. Thus, through ManiTela, it will help the working and non-working
poor to improve their standards of living.

4.4 WASTE REDUCTION

Table 4.20 Waste Reduction

Production Waste Reduction Annual Percentage Yearly Waste

Table Year (rolls) (per roll) Reduction Reduction (kg)
4.20 2020 4,896 14.083kg 4.25 68,950.37
gives 2021 5,184 14.083kg 4.50 73,006.27
2022 5,472 14.083kg 4.75 77,062.18
2023 5,760 14.083kg 5.00 81,118.08
2024 5,760 14.083kg 5.00 81,118.08
validation on waste reduction for five (5) years. Every roll is equivalent to 14.083 kg and as the
production increases, the waste reduction contributed by the company also increase as follows.

For year 2020, the company can reduce an approximated of 4.25% peanut shell as
stated. The annual percentage reduction shows the cutting of volume for waste that is
existing but was utilized. There is an increase of 0.25% annually with the depletion.

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4.4.1 Society

As the nation faces rampant wastes, ManiTela advocates “eco-saving” to help

diminish wastes by producing quality products made totally from a waste
material which is the peanut shell fiber. Also, the company highly envisions to
help the local community, the indigent people through donations.

Striving to reach success in the business world is never easy. But once the
business tastes the sweet taste of success, it is very important to not let the air
get into the head. Said statement will serve as a reminder to ManiTela that no
matter how high the business soar, one should remain humble and most
importantly give back to the society. It is very important to contribute for the
greater good of the society. Social good will be a top priority of ManiTela and be
practiced as a way of life rather than a compulsion.

4.4.2 Donations

ManiTela highly envisions to help the local community especially the indigent
people through donations. Few of the ways ManiTela can give back to those in
need are: (1) research and development for farms, (2) fertilizers for farmers, (3)
surplus products are donated to the indigents, (4) offer time and service, (5)
‘kabuhayan’ trainings, and (6) education.

Table 4.21 Fund Allocation

Donations
2020 2021 2022 2023 2024

Cost (Php) 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00

Table 4.21 shows the cost for five (5) years in which Php 50,000.00 will be added
yearly. The costs are used for the donations of ManiTela to help the Filipinos in
need especially those who belonged in unfortunate households and or indigent
people.

4.4.3 Eco-saving

In the Philippines, waste is very rampant. This is one of the very reasons why
ManiTela was realized. ManiTela was inspired from creating nothing into
something. The company advocates “eco-saving”, so the goal is to producing
quality products made from 100% wastes. In this case, the ManiTela do not only
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earn profit out of the products but it is also helping the country lessen the
environmental burden. The company reduces 81 tons of peanut shells at full
capacity while stated on table 4.20, the company can reduce approximate
4.25% of peanut shell on its 85% rated capacity in first year production.

4.5 PRODUCTION

One way to improve production is by focusing on the main raw materials of the
business. This can be possibly done through giving importance on the growth
improvement of peanut by conducting a research for the development. ManiTela is a
company that focuses not only on generating income for its beneficiaries but also on
allocating a part of the profit set aside for a special use.

Aside from focusing on generating income, the company also gives great notice
regarding on the production which leads to the advantage of giving importance on
agriculture, supply and tourism. Since the main raw material of the business comes in
the form of nuts, several peanut farmers who are expert in the field of agricultures are
needed. With the help of the farmers, enough supply for the production will be
provided. With the existence of peanut plantation, it can attract tourist openly by
allowing visitations in the area. After the success of the production, part of the market
strategy of ManiTela is to conduct fashion show to attract and increase rate of tourists
in the city.

Table 4.22 Raw Materials Requirement for Manitela

Daily Daily Monthly Annual

Price Production Production Production Production
Raw Materials Quantity Unit (Php) (Rolls) Cost (Php) Cost (Php) Cost (Php)
Peanut Shell 104 Sack 50 24 5,200.00 104,000.00 1,248,000.00
Sodium
Hydroxide 8 Kg 215 104 1,720.00 34,400.00 412,800.00

Dye 10 8Oz 349 24 3,490.00 69,800.00 837,600.00

Total 10,410.00 208,200.00 2,498,400.00
Table 4.22 shows the raw material requirements for ManiTela. The company will require
104 sacks of peanut shells (a total of 6,760kg) to manufacture 24 rolls of Barong textile
with the dimensions of 1.6x15 meters.

4.5.1 Agriculture

Since agriculture is the cultivation of land and breeding of animals and plants to
provide food, fiber, medicinal plants and other products to sustain and enhance
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life, the company then is evidently contributing into it, given with the research
to be done and by acting of commencing a farm exclusive for the plantation of
peanuts only. Today, 58 organizations in Region 10 and Caraga are members of
the Northern Mindanao Peanut Industry Association (NMPIA). Each member
organization represents 50 to 300 potential peanut growers, or a total of more
than 3,000 farm households, of whom several hundred are already growing
peanuts.

Another way of captivating agriculture is by encouraging more farmers in

Zamboanga City since the major suppliers of the company comes from the
millings located just within the peninsula. It is great to persuade new farmers
since having a rise in suppliers means more supplies for the company.

4.5.2 Supply

Becoming the first and leading clothing textile manufacturer and supplier in the
City have the advantage of cultivating a loyal local customer base. This
safeguards financial sustainability, and guarantees the company maintains a
positive standing in the local market.

A rise of clothing textile industry in Zamboanga says there will be an additional

supply of fabrics used in garments for local events in the city. Moreover, the
local clothiers no longer must buy supplies outside the city, the delivery and
collection of stocks will be hassle-free, the cost for shipping fee is much lower,
and building better relationships can be ensued. Local firms when doing
business with one another helps build the local economy and enrich local
culture.

Table 4.23 Competitive Advantage of ManiTela

Competitive Advantage
Traditional Barong Textile ManiTela
Cost
Approximately Php 5, 000.00/roll Php 3, 860.00/roll
Features
Aesthetically pleasing
Longer life span
Lightweight
Cozy
Finer texture
Uniform thickness of the thread
Delivery Transaction
Same Day Delivery

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Table 4.23 shows the competitive advantage of ManiTela. The ManiTela is

selling a product that is comfortable to use, appealing, and above all it got a
cultural identity characteristic.

4.5.3 Tourism

The unique and novel products ManiTela offer has no doubt can attract and
entice tourists. This way, it can help the local community become self-sustaining
and a travel destination. This in turn betters or stimulate the local economy
overall.

ManiTela strongly wishes to promote the Filipino culture to the fellow Filipinos
and to foreign people. That is why ManiTela is rationalizing to make products
that is enticing and eye-catching to the target customers. Every tourist often
wants to experience “authentic” local flavor; whatever that may be (food,
scenery, goods, etc.), so under in this circumstance, ManiTela partners with
local designers to create clothes that is “in” in today’s trend but with of course a
traditional classic touch.

One way to attract tourists is by conducting a local fashion shows showcasing

the masterpiece of the ManiTela clothing. However, the fashion show has a
unique touch of presenting how the culture is preserved and that the products
from the company are extraordinary. This is the best platform to showcase the
barong collection as part of culturism.

5.1 FINANCIAL ASSUMPTIONS OF MANITELA

1. The facility will be operating at 85% of the maximum capacity and it will
increase by 5% annually until it reaches 100% on 2024.
2. The manufacturing company will operate for 8 hours, 5 days a week, and 20
days a month for 12 months.

3. The total project cost is ₱ 14,021,004.85

4. Depreciation is based on a straight-line method.

5. The 60% of the total project cost is to be loaned from BDO and the remaining
40% will be provided by the company.

6. Working capital is allotted for a six-month operation period and cost around
₱ 5,562,383.85

7. Pre-operating expenses shall be charged by the next first year of operations.

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8. A total of ₱84,600 for pre-operating expense with seminars and training.

9. A 270% mark-up will be implemented.

10. The company will follow a first-in-first-out (FIFO) method for the inventory
handling.

11. The electricity rate is ₱9.4417 per kilowatt/hour as of December 2018.

12. The water rate is ₱53.6957 per cubic meter as of December 2018.

13. The 60% shall be financed by BDO at an 8.50% interest rate and will be paid
quarterly for five years.

14. Raw material purchases are 10% payable due the following year.

15. Account receivables will be 10% of the actual sales.

16. Income tax is due based on the schedule for corporation type of business.

17. Sales return is assumed to be 2% of the gross sales.

18. The donation cost is ₱150,000 for the first year and will increase by ₱50,000
yearly.

19. The insurance rate for vehicle and facility is assumed to be 5% of the total cost
annually.

20. Increase of labor expense by 5.4% yearly.

21. The inflation rate is 4.4% as of January 2019.

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5.2 TOTAL PROJECT COST

Table 5.1 Total Project Cost

TOTAL PROJECT COST

Investments Notes Equity Loan Total

Facility Schedule No. 11 1,000,000.00 5,000,000.00 6,000,000.00
Land Schedule No. 14 400,000.00 800,000.00 1,200,000.00
Auxilliary Schedule No. 13 500,000.00 500,000.00
Machines & Equipment & Fixtures Schedule No. 10 263,716.00 200,000.00 463,716.00
Safety Gears and Equipment Schedule No. 10 80,900.00 80,900.00
Admin Furnitures and Fixtures Schedule No. 9 111,790.00 111,790.00
Offi ce supplies Schedule No. 9 17,615.00 17,615.00
Total Fixed Asset 8,374,021.00
Six Months Working Capital Schedule No. 36 3,197,383.85 2,365,000.00 5,562,383.85
Pre operating Expense w/ training Schedule No. 12 21,600.00 63,000.00 84,600.00
Total Fixed Asset 5,593,004.85 8,428,000.00 14,021,004.85
Debt-Equity Ratio % 40% 60% 100%

Table 5.1 shows the total project cost of ManiTela with an amount loan of Php 8,415,000.00 and amount equity of Php
5,606,004/85 with a total of Php 14,021,004.85

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5.3 INCOME STATEMENT

Table 5.2 Projected Income Statement

INCOME STATEMENT
NOTES 2020 2021 2022 2023 2024
Gross Sales Schedule No. 29 18,996,480.00 21,000,384.00 23,141,088.00 25,430,400.00 26,547,840.00
Less: Sales Return Schedule No. 31 189,964.80 210,003.84 231,410.88 254,304.00 265,478.40
Sales Deals Schedule No. 32 377,971.20 417,813.81 460,430.82 505,989.24 528,252.76
Net Sales 18,428,544.00 20,372,566.35 22,449,246.30 24,670,106.76 25,754,108.84
Less: Cost of goods sold Schedule No. 38 5,597,002.93 5,931,481.62 6,206,550.97 6,494,781.23 6,795,845.95
Gross Profit 12,831,541.07 14,441,084.73 16,242,695.33 18,175,325.53 18,958,262.89
Less: Sales and Administrative Exp. Schedule No. 21 5,750,678.22 6,255,745.30 7,323,889.41 7,831,258.18 8,362,407.92
Amortized Pre-Operating Expense Schedule No. 12 84,600.00
Operating income 6,996,262.86 8,185,339.43 8,918,805.92 10,344,067.35 10,595,854.97
Less: Interest Expense Schedule No. 37 672,079.98 547,952.67 412,933.45 266,066.57 106,312.41
Net Profit Before Donations 6,324,182.88 7,637,386.75 8,505,872.47 10,078,000.79 10,489,542.56
Less: Donations 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00
Net Profit Before Income Tax 6,174,182.88 7,437,386.75 8,255,872.47 9,778,000.79 10,139,542.56
Less: Income Tax 1,852,254.86 2,231,216.03 2,476,761.74 2,933,400.24 3,041,862.77
VAT Schedule No. 44 1,879,206.96 2,087,577.12 2,310,347.17 2,548,771.79 2,661,360.09
NET PROFIT 2,442,721.05 3,118,593.61 3,468,763.56 4,295,828.76 4,436,319.70

Table 5.2 shows the projected total net profit of ManiTela from year 2020 to 2024.

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5.4 CASH FLOW STATEMENT

Table 5.3 Cash Flow Statement

CASHFLOW STATEMENT
Notes Pre-operating 2020 2021 2022 2023 2024
Cash-inflows:

Cash Sales Schedule No. 33 16,585,689.60 18,335,309.71 20,204,321.67 22,203,096.09 23,178,697.95

Accounts Receivable Schedule No. 33 1,842,854.40 2,037,256.63 2,244,924.63 2,467,010.68
Loan Schedule No. 35 8,428,000.00 - - - - -
Equity Schedule No. 35 5,593,004.85 - - - - -
Total Cash Inflows 14,021,004.85 16,585,689.60 20,178,164.11 22,241,578.30 24,448,020.72 25,645,708.63
Cash-Outflow
Facility Schedule No. 35 6,000,000.00
Land Schedule No. 35 1,200,000.00
Auxillary Equipment Schedule No. 35 500,000.00
Manufacturing Equipment and Materials Schedule No. 35 463,716.00
Manufacturing Supplies Schedule No. 35
Safety Gears and Equipment Schedule No. 35 80,900.00
Office Supplies Schedule No. 35 17,615.00
Office Furnitures and Fixtures Schedule No. 35 111,790.00
Pre-operating expenses Schedule No. 35 84,600.00
VAT Schedule No. 44 1,879,206.96 2,087,577.12 2,310,347.17 2,548,771.79 2,661,360.09
A/P Payment Schedule No. 25 251,400.00 259,833.60 270,226.94 281,036.02
RM purchased Schedule No. 25 2,262,600.00 2,338,502.40 2,432,042.50 2,529,324.20 2,630,497.16
Direct Labor Schedule No. 7 827,389.44 877,310.07 930,246.15 986,380.02 1,045,905.06
Manufacturing OH (net) Schedule No. 20 2,241,328.64 2,435,036.35 2,553,381.61 2,677,539.05 2,806,822.84
Sales & Admin (net) Schedule No. 21 5,577,393.07 6,100,075.15 7,168,219.26 7,675,588.03 8,206,737.77
Personal drawing Schedule No. 22 300,000.00 325,000.00 350,000.00 375,000.00 400,000.00
Income Tax Payment 1,852,254.86 2,231,216.03 2,476,761.74 2,933,400.24
Principal Payment Schedule No. 37 1,414,589.04 1,538,716.34 1,673,735.57 1,820,602.45 1,980,356.60
Interest Payment Schedule No. 37 672,079.98 547,952.67 412,933.45 266,066.57 106,312.41
Donations 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00
Total Cash Outflow 8,458,621.00 15,324,587.12 18,553,824.98 20,571,955.33 21,926,260.79 23,402,428.19
NET CASH INFLOW 5,562,383.85 1,261,102.48 1,624,339.14 1,669,622.97 2,521,759.92 2,243,280.44
Add: Cash Beg Balance - 5,562,383.85 6,823,486.33 8,447,825.46 10,117,448.44 12,639,208.36
CASH ENDING BALANCE 5,562,383.85 6,823,486.33 8,447,825.46 10,117,448.44 12,639,208.36 14,882,488.80

Table 5.3 shows the projected cash flow statement of ManiTela from year 2020 to 2024.

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5.5 PROJECTED BALANCE SHEET

Table 5.4 Projected Balance Sheet

BALANCE SHEET
Notes Pre-operating 2020 2021 2022 2023 2024
ASSETS
Current Asset
Cash Schedule No. 40 5,562,383.85 6,823,486.33 8,447,825.46 10,117,448.44 12,639,208.36 14,882,488.80
RM Inventory Schedule No. 24 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00
FG Inventory Schedule No. 29 75,119.61 78,424.87 81,875.57 85,478.09 89,239.13
Prepaid Manufacturing Supplies Schedule No. 40
Prepaid Office Supplies Schedule No. 40 17,615.00
Prepaid Safety Gears Schedule No. 40 80,900.00
Prepaid Pre-operating Expenses Schedule No. 40 84,600.00
Accounts Receivable Schedule No. 33 1,842,854.40 2,037,256.63 2,244,924.63 2,467,010.68 2,575,410.88
Total Current Assets 5,745,498.85 8,757,060.34 10,579,106.97 12,459,848.64 15,207,297.13 17,562,738.81

Fixed Assets
Land Schedule No. 40 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00
Facility Schedule No. 40 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Auxiliary Equipment Schedule No. 40 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
Manufacturing Equipment and MaterialsSchedule No. 40 463,716.00 463,716.00 463,716.00 463,716.00 463,716.00 463,716.00
Office Furnitures & Fixtures Schedule No. 40 111,790.00 111,790.00 111,790.00 111,790.00 111,790.00 111,790.00
Subtotal 7,075,506.00 7,075,506.00 7,075,506.00 7,075,506.00 7,075,506.00 7,075,506.00
Less: Depreciation Schedule No. 20 & 21 - 179,774.61 359,549.22 539,323.83 719,098.44 898,873.05
Book Value 7,075,506.00 6,895,731.39 6,715,956.78 6,536,182.17 6,356,407.56 6,176,632.95
Total Fixed Assets 8,275,506.00 8,095,731.39 7,915,956.78 7,736,182.17 7,556,407.56 7,376,632.95

TOTAL ASSETS 14,021,004.85 16,852,791.73 18,495,063.75 20,196,030.81 22,763,704.69 24,939,371.76

LIABILITIES AND EQUITY

Current Liabilities
Accounts Payable Schedule No. 25 251,400.00 259,833.60 270,226.94 281,036.02 292,277.46
Loans Payable 1,414,589.04 1,538,716.34 1,673,735.57 1,820,602.45 1,980,356.60 0
Income Tax Payable - 1,852,254.86 2,231,216.03 2,476,761.74 2,933,400.24 3,041,862.77
Total Current Liabilities 1,414,589.04 3,642,371.21 4,164,785.19 4,567,591.14 5,194,792.86 3,334,140.23

Long-Term Loans Payable

Loans Payable Schedule No. 37 7,013,410.96 5,474,694.62 3,800,959.05 1,980,356.60 (0.00) -
Total Long-term Loans Payable 7,013,410.96 5,474,694.62 3,800,959.05 1,980,356.60 (0.00) -

TOTAL LIABILITIES 8,428,000.00 9,117,065.83 7,965,744.25 6,547,947.74 5,194,792.86 3,334,140.23

Equity
Beginning Equity 5,593,004.85 5,593,004.85 7,735,725.90 10,529,319.51 13,648,083.07 17,568,911.83
Add: Net Income for the Period Schedule No. 39 0 2,442,721.05 3,118,593.61 3,468,763.56 4,295,828.76 4,436,319.70
Less: Withdrawals 0 300,000.00 325,000.00 350,000.00 375,000.00 400,000.00
Ending Equity 5,593,004.85 7,735,725.90 10,529,319.51 13,648,083.07 17,568,911.83 21,605,231.53

TOTAL LIABILITIES AND EQUITY 14,021,004.85 16,852,791.73 18,495,063.75 20,196,030.81 22,763,704.69 24,939,371.76
Balance Indicator - - - - - -

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Table 5.4 shows the projected balance sheet of ManiTela from year 2020 to 2024.

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5.6 SIX MONTHS WORKING CAPITAL

Table 5.5 Six Months Working Capital

SIX MONTHS WORKING CAPITAL

Notes Annual Cost 6-Months WC
Direct Materials Schedule No. 6 2,498,400.00 1,249,200.00
Direct Labor Schedule No. 7 1,062,965.60 531,482.80
Prime Cost 1,780,682.80
Manufacturing Overhead
Indirect Labor Schedule No. 7 1,062,965.60 531,482.80
Electricity Schedule No. 1 628,656.38 314,328.19
Water Schedule No. 3 59,657.16 29,828.58
Fuel Schedule No. 2 103,200.00 51,600.00
Insurance Schedule No. 4 325,000.00 162,500.00
Safety Gears Schedule No. 10 117,000.00 58,500.00
Safety Equipment Sched ule No. 10 44,800.00 22,400.00
Packaging Expense Schedule No. 19 5,100.00 2,550.00
Repair and Maintenance Schedule No. 17 56,749.50 28,374.75
Total Manufacturing Overhead 1,201,564.32
Sale and Administration
Advertisement Expense Schedule No. 18 750,000.00 375,000.00
Office Supplies Schedule No. 9 258,810.00 129,405.00
Internet Schedule No. 5 20,388.00 10,194.00
Admin Labor Schedule No. 8 3,955,862.40 1,977,931.20
Power Consumption Schedule No. 1 175,213.07 87,606.53
Total Sale and Administration 2,580,136.73
Total Six Month Working Capital 5,562,383.85

Table 5.5 shows total six (6) months working capital ManiTela

5.7 TEST OF LIQUIDITY

Table 5.6 Current Ratio

The Current Ratio compares how much greater is the assets compared with the
company’s liabilities. In this case, the current ratio for assets is equivalent to 2.40
for its first year and is increasing for the following years. This interprets that
ManiTela contains greater assets than its liabilities , unless the ratio for asset is
below than 1.
Current Ratio Notes 2020 2021 2022 2023 2024
Current Assets Schedule No. 41 8,757,060.34 10,579,106.97 12,459,848.64 15,207,297.13 17,562,738.81
Current Liabilities Schedule No. 41 3,642,371.21 4,164,785.19 4,567,591.14 5,194,792.86 3,334,140.23
Current Ratio 2.40 2.54 2.73 2.93 5.27

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Table 5.6 shows the company’s ability to cover up its liabilities through its acquired
assets for five years as projected in the table above.

Table 5.7 Acid-Test Ratio

Acid-Test Ratio is the comparison of the physical assets, not including Account
Receivable Turnover since it hasn’t been received yet, versus liabilities. This is to
validate what is in store.

Acid Test Ratio Notes 2020 2021 2022 2023 2024

Current Assets Schedule No. 41 8,757,060.34 10,579,106.97 12,459,848.64 15,207,297.13 17,562,738.81
Inventories (RM+FG) Schedule No. 41 90,719.61 94,024.87 97,475.57 101,078.09 104,839.13
Accounts Receivables Schedule No. 41 1,842,854.40 2,037,256.63 2,244,924.63 2,467,010.68 2,575,410.88
Current Liabilities Schedule No. 41 3,642,371.21 4,164,785.19 4,567,591.14 5,194,792.86 3,334,140.23
Acid Test Ratio 1.87 2.03 2.22 2.43 4.46

Table 5.7 shows the company’s ability to cover up its liabilities through it acquires assets.
Acid-Test Ratio is a more precise ratio in measuring liquidity or the firm’s solvency
through removing the inventory and the accounts receivables which are not readily
convertible assets into cash.

Table 5.8 Account Receivable Turnover

Account Receivable Turnover is the number of times per year that the company should
collect its average accounts receivable. It goes with how many times a customer
purchases a product on credit per year.
A/R turnover Notes 2020 2021 2022 2023 2024
Net credit sales Sched 33 1,842,854.40 2,037,256.63 2,244,924.63 2,467,010.68 2,575,410.88
Ave. A/R 72,000 74,880 77,875 80,990 84,230
A/R turnover 25.60 27.21 28.83 30.46 30.58

Table 5.8 shows the intended time to evaluate the ability of a company to efficiently
issue credit to its customers and collect funds from them in a timely manner

Table 5.9 Days Sale in Account Receivable

Days Sale in Account Receivable is a calculation used by a company to estimate the size
of the outstanding accounts receivable. It measures this size not in units of currency,
but in average sales days

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Day's sale in A/R Notes 2020 2021 2022 2023 2024

Days in a year 365 365 365 365 365
A/R turnover 25.60 27.21 28.83 30.46 30.58
Day's sale in A/R 14.26 13.42 12.66 11.98 11.94

Table 5.9 determines the average number of days owed by customers for credit sales

Table 5.10 Inventory Turnover

Inventory Turnover Ratio determines the number of times needed to sell all the
products in the inventory. Also, a comparison made from Gross Profit and Cost of
Goods Sold. The reason why there is a slow turnover ratio is that the company has a
goal of restoring a product in the inventory every month. There will be a total of 6
textiles (rolls) allotted to be stored in the inventory per month.
Inventory turnover Notes 2020 2021 2022 2023 2024
COGS Schedule No. 38 4,058,346.45 4,487,175.18 4,683,170.00 4,884,508.63 5,029,004.79
Inventory Schedule No. 41 75,891 78,303 80,811 83,419 86,132
Inventory Turnover Ratio 53.48 57.31 57.95 58.55 58.39

Table 5.10 shows the turnover ratio which measures the number of times that the
inventory is sold and replaced within the year. Thus, the above table shows the gradual
increase of turnovers of the inventories.

Table 5.11 Days Sale in Inventory

Days Sale in Inventory indicates the average time which is presented in days that a
company takes to turn its inventory including goods that are a work in progress into
sales.
Day's sale in inventory Notes 2020 2021 2022 2023 2024
Days in a year 365 365 365 365 365
Inventory turnover 53.48 57.31 57.95 58.55 58.39
Day's sale in inventory 6.83 6.37 6.30 6.23 6.25

Table 5.11 shows the number of days needed to be able to sell a quantity taken from the
inventory

Table 5.12 Debt to Equity Ratio

The debt to equity ratio is a comparison of company’s total debt to total equity.

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Debt to Equity Notes 2020 2021 2022 2023 2024

Total Liabilities Schedule No. 41 9,117,065.83 7,965,744.25 6,547,947.74 5,194,792.86 3,334,140.23
Total Equity Schedule No. 41 7,735,725.90 10,529,319.51 13,648,083.07 17,568,911.83 21,605,231.53
Return on Total Assets 1.18 0.76 0.48 0.30 0.15

Table 5.12 shows the debt to equity ratio of the firm. It is also one solvency ratio which
aims to measure the firms total liabilities as a percentage of the total equity present. The
company slowly increase its ratio with equity until there will be no more debt for the
company to pay. A lower debt to equity ratio usually implies a more financially stable
business.

Table 5.13 Times Interest Earned

Times Interest Earned measures a firm’s ability to make interest and debt service
payments. It validates the whether the company is earning despite of having a debt
being paid yearly.
Times Interest Earned Notes 2020 2021 2022 2023 2024
Income Before Tax Schedule No. 39 6,324,182.88 7,637,386.75 8,505,872.47 10,078,000.79 10,489,542.56
Interest Expense Schedule No. 39 672,079.98 547,952.67 412,933.45 266,066.57 106,312.41
Times Interest Earned 9.41 13.94 20.60 37.88 98.67

Table 5.13 shows the result for Times Interest Earned. With the data given, Income
Before Income Tax and Interest Expense, this validate whether ManiTela earns
despite its debt that was used as a capital. Also, Times Interest Earned states that
while the company is slowly paying for its debt, it is still earning since its profit is
greater than the interest being payed taken from the loan.

5.8 TEST OF PROFITABILITY

It indicates the ratio of the company’s ability to generate net income on a consistent
basis. It shows that ManiTela has an increasing profit margin as years go by and it’s an
indication that the company is doing excellent in terms of its performance as an income
generating entity.

Table 5.14 Gross Profit Margin

The Gross Profit margin, is the ratio of gross margin expressed as a percentage of sales..
It measures of the efficiency of a company using its raw materials and labor during
the production process. The higher the profit margin, the more efficient a company is.
Gross Profit Margin Notes 2020 2021 2022 2023 2024
Gross Profit Schedule No. 40 12,831,541.07 14,441,084.73 16,242,695.33 18,175,325.53 18,958,262.89
Net Sales Schedule No. 40 18,428,544.00 20,372,566.35 22,449,246.30 24,670,106.76 25,754,108.84
Gross Profit Margin 70% 71% 72% 74% 74%

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Table 5.14 illustrates the annual gross profit margin of ManiTela through getting the
percentage of its gross profit from its net sales. Due to Labor, Gross Profit is bigger
than the Net Sales. However, there will be 69% of Gross Profit Margin for its first
year with an increase for the following years.

Table 5.15 Net Profit Margin

Net Profit Margin indicates how much net income a company makes with total sales
achieved.
Net Profit Margin Notes 2020 2021 2022 2023 2024
Net Income Schedule No. 40 2,442,721.05 3,118,593.61 3,468,763.56 4,295,828.76 4,436,319.70
Net Sales Schedule No. 40 18,428,544.00 20,372,566.35 22,449,246.30 24,670,106.76 25,754,108.84
Net Profit Margin 13% 15% 15% 17% 17%

Table 5.15 shows the company’s growing net profit margin through the ratio of its net
sales to its net income. Net Profit Margin indicates the percentage of Net Income from
its Net Sales.

Table 5.16 Return on Total Assets

Return on Total Assets is a profitability ratio that measures the rate of return on
resources owned by a business.
Return on Total Assets Notes 2020 2021 2022 2023 2024
Net Income Schedule No. 39 2,442,721.05 3,118,593.61 3,468,763.56 4,295,828.76 4,436,319.70
Total Assets Schedule No. 41 16,852,791.73 18,495,063.75 20,196,030.81 22,763,704.69 24,939,371.76
Return on Total Assets 14% 17% 17% 19% 18%

Table 5.16 shows the return on assets for the ManiTela. It is also one of the profitability
ratios which measures the net income produced during the period in comparison with
the total assets available for the firm. Thus, it is the ability of the firm to generate
income from its assets.

Table 5.17 Return of Investment

Return of Investment is a performance measure of the company to evaluate its

efficiency in acquiring back all of its capital investment at the start of implementation of
ManiTela. It is computed by dividing the average annual income for five years by its total
project cost.

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Return of Investment Notes 2020 2021 2022 2023 2024 Average
Net income Schedule No. 39 2,442,721.05 3,118,593.61 3,468,763.56 4,295,828.76 4,436,319.70 3,552,445.34
Equity + Loan Schedule No. 41 14,021,004.85 14,021,004.85 14,021,004.85 14,021,004.85 14,021,004.85
ROI 17% 22% 25% 31% 32% 25%

Table 5.17 shows the Return of Investment in a year with an average percentage of 26%.

Table 5.18 Return of Equity

The Return on Equity is a measure of how well a company uses investments to generate
earnings growth. It is a measure of the profitability of a business in relation to the
equity.
Return of Equity Notes 2020 2021 2022 2023 2024 Average
Net income Schedule No. 39 2,442,721.05 3,118,593.61 3,468,763.56 4,295,828.76 4,436,319.70 3,552,445.34
Equity Schedule No. 41 5,593,004.85 5,593,004.85 5,593,004.85 5,593,004.85 5,593,004.85
ROE 44% 56% 62% 77% 79% 64%

Table 5.18 shows the Return of Equity in a year with an average percentage of 64%

Table 5.19 Payback Period

Payback period is a capital budgeting criterion that indicates the number of years to be
able to realize all the initial capital investment. It is computed as the ratio of the total
project cost to its average annual income for five years.

Payback Period
Notes
Total Project Cost Schedule No. 35 14,021,004.85
Ave. Annual Income Schedule No. 39 3,552,445.34
Payback Period 3.95

Table 5.19 shows that the payback period for this project as computed are 3.92 or 4
years.

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5.9 BREAK-EVEN ANALYSIS

BREAK - EVEN ANALYSIS
Notes 2020 2021 2022 2023 2024
Selling Price Schedule No. 27 3,860.00 4,029.84 4,207.15 4,392.27 4,585.53
Variable Cost
Sales Return Schedule No. 39 189,964.80 210,003.84 231,410.88 254,304.00 265,478.40
Direct Material Schedule No. 25 2,514,000.00 2,598,336.00 2,702,269.44 2,810,360.22 2,922,774.63
Direct Labor Schedule No. 7 1,062,965.60 1,120,365.74 1,180,865.49 1,244,632.23 1,310,868.11
Fuel Schedule No. 20 103,200.00 107,740.80 112,481.40 117,430.58 122,597.52
Water Schedule No. 20 59,657.16 62,282.08 65,022.49 67,883.48 70,870.35
Electricity Schedule No. 20 628,656.38 656,317.26 685,195.22 715,343.81 746,818.93
Safety Gears and Equipment Schedule No. 20 80,900.00 84,459.60 88,175.82 92,055.56 96,106.00
Production Supplies Schedule No. 20
Packaging Schedule No. 20 5,100.00 5,324.40 5,558.67 5,803.26 6,058.60
Finished Goods Ending Inventory Schedule No. 29 75,119.61 78,424.87 81,875.57 85,478.09 89,239.13
Incentives Schedule No. 21 379,929.60 420,007.68 462,821.76 508,608.00 530,956.80
Income tax Schedule No. 39 1,852,254.86 2,231,216.03 2,476,761.74 2,933,400.24 3,041,862.77
VAT Schedule No. 39
Total Variable Cost 6,876,628.40 7,577,783.56 8,095,889.17 8,838,901.97 9,207,392.27
Fixed Cost
Amortized Pre - Operating Expenses Schedule No. 39 84,600.00
Sales Deals Schedule No. 39 377,971.20 417,813.81 460,430.82 505,989.24 528,252.76
Indirect Labor Schedule No. 20 1,062,965.60 1,120,365.74 1,180,865.49 1,244,632.23 1,310,868.11
Insurance Schedule No. 20 325,000.00 339,300.00 354,229.20 369,815.28 386,087.16
Repair and Maintainance Schedule No. 20 56,749.50 59,246.48 61,853.32 64,574.87 67,416.16
Interest Expense Schedule No. 39 672,079.98 547,952.67 412,933.45 266,066.57 106,312.41
Salary of Administrative Personnel Schedule No. 21 4,251,862.40 4,503,366.97 4,769,839.25 5,052,174.29 5,351,320.85
Offi ce Supplies Schedule No. 21 17,615.00 18,390.06 19,199.22 20,043.99 20,925.92
Advertising Expense Schedule No. 21 750,000.00 955,000.00 1,705,000.00 1,875,000.00 2,075,000.00
Utility / Offi ce Electricity Schedule No. 21 175,213.07 182,922.44 190,971.03 199,373.75 208,146.20
Internet Schedule No. 21 20,388.00 20,388.00 20,388.00 20,388.00 20,388.00
Depreciation Schedule No. 20 and 21 179,774.61 179,774.61 179,774.61 179,774.61 179,774.61
Warranty
Total Fixed Cost 7,974,219.36 8,344,520.79 9,355,484.40 9,797,832.83 10,254,492.19
Total Production in Units Schedule No. 28 4,968 5,184 5,472 5,760 5,760
Variable Cost per Unit 1,384.1845 1,461.7638 1,479.5119 1,534.5316 1,598.5056
Break-even (Units) 3,221 3,249 3,430 3,429 3,433
Break-even (Pesos) 12,498,676.02 13,055,453.86 14,389,712.64 15,017,499.17 15,699,399.59

Table 5.20 shows the Break-Even Analysis from year 2020 to 2024. The average number of
break-even in units is 3,385 rolls with an amount of Php 14,113,689.14 .

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LIST OF SCHEDULES

Schedule No. 1 Electricity

Schedule No. 2 Fuel
Schedule No. 3 Water Consumption
Schedule No. 4 Insurance
Schedule No. 5 Internet
Schedule No. 6 Direct Materials
Schedule No. 7 Direct and Indirect Labor
Schedule No. 8 Administrative Labor
Schedule No. 9 Office Tools, Equipment and Supplies
Schedule No. 10 Manufacturing Tools and Equipment
Schedule No. 11 Bill of Materials
Schedule No. 12 Pre-operating Expense
Schedule No. 13 Auxiliary Equipment
Schedule No. 14 Land Cost
Schedule No. 15 Depreciation Schedule for Manufacturing
Schedule No. 16 Depreciation Schedule for Sales & Admin
Schedule No. 17 Repair and Maintenance Cost
Schedule No. 18 Advertising Expense
Schedule No. 19 Packaging Expense
Schedule No. 20 Manufacturing Overhead
Schedule No. 21 Sales and Administrative Expense

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Schedule No. 22 Drawings

Schedule No. 23 Summary of Raw Materials in Units
Schedule No. 24 Summary of Raw Materials (In Pesos)
Schedule No. 25 Summary of Raw Materials Purchased
Schedule No. 26 Selling Price
Schedule No. 27 Actual Cost and Selling Price
Schedule No. 28 Finished Goods Ending Inventory in Units
Schedule No. 29 Finished Goods Ending Inventory in Peso
Schedule No. 30 Incentives
Schedule No. 31 Sales Return
Schedule No. 32 Sales Deals
Schedule No. 33 Net Sales
Schedule No. 34 Warrant Expense
Schedule No. 35 Total Project Cost
Schedule No. 36 Six Months Working Capital
Schedule No. 37 Sample Amortization Schedule
Schedule No. 38 Cost of Goods Sold
Schedule No. 39 Income Statement
Schedule No. 40 Cash Flow Statement
Schedule No. 41 Balance Sheet
Schedule No. 42 Input VAT
Schedule No. 43 Output VAT
Schedule No. 44 Value Added Tax Due (VAT DUE)
Schedule No. 45 Breakeven Analysis

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Schedule No.1 Electricity

Schedule No. 1
ELECTRICITY
(Office Power Consumption)
Appliances Quantity Kw/h Hours used Rate Daily Cost Monthly Cost Annual Cost 2020 2021 2022 2023 2024
Computer 14 0.2 8 9.1002 203.84 4,076.89 48,922.68
Printer 4 0.12 3 9.1002 13.10 262.09 3,145.03
Aircon 2 3.5 8 9.1002 509.61 10,192.22 122,306.69
LED Lights 6 0.008 8 9.1002 3.49 69.89 838.67
Sub-total 730.05 14,601.09 175,213.07 175,213.07 182,922.44 190,971.03 199,373.75 208,146.20
(Production Power Consumption)
Appliances Quantity Kw/h Hours used Rate Daily Cost Monthly Cost Annual Cost 2,020.00 2,021.00 2,022.00 2,023.00 2,024.00
Grind & Separate 1.00 5.50 8.00 9.1002 400.41 8,008.18 96,098.11
Cleaning 1.00 5.00 8.00 9.1002 364.01 7,280.16 87,361.92
Carding 1.00 8.50 8.00 9.1002 618.81 12,376.27 148,515.26
Combing 1.00 3.00 8.00 9.1002 218.40 4,368.10 52,417.15
Roving 1.00 5.50 8.00 9.1002 400.41 8,008.18 96,098.11
Spinning 1.00 5.50 8.00 9.1002 400.41 8,008.18 96,098.11
Weaving 1.00 2.20 8.00 9.1002 160.16 3,203.27 38,439.24
LED Lights 10.00 0.01 8.00 9.1002 5.82 116.48 1,397.79
Exhaust Fan 2.00 0.35 8.00 9.1002 50.96 1,019.22 12,230.67
Sub-total 2,619.40 52,388.03 628,656.38 628,656.38 656,317.26 685,195.22 715,343.81 746,818.93
Total 3,349.46 66,989.12 803,869.44 803,869.44 839,239.70 876,166.25 914,717.56 954,965.13

Schedule No. 1 shows the Annual Electricity Consumption of ManiTela

Schedule No. 2 Fuel

Schedule No. 2
FUEL
Item Use Quantity Cost per Liter Liter per day Cost per day Cost per Month Cost per year 2020 2021 2022 2023 2024
Vehicle Transportation 2.00 43.00 5.00 430.00 8,600.00 103,200.00
Total 8,600.00 103,200.00 103,200.00 107,740.80 112,481.40 117,430.58 122,597.52

Schedule No. 2 shows the Annual Fuel Consumption of ManiTela

Schedule No. 3 Water Consumption

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Schedule No. 3
WATER CONSUMPTION
Consumption (m³) Cost per m³ Daily Cost Monthly Cost Annual Cost 2020 2021 2022 2023 2024
Production Area
Facility 5 49.71 248.57 4,971.43 59,657.16
Sub-total 4,971.43 59,657.16 59,657.16 62,282.08 65,022.49 67,883.48 70,870.35
Administrative
Office Area 1 49.71 49.71 994.29 11,931.43
Sub-total 994.29 11,931.43 11,931.43 12,456.42 13,004.50 13,576.70 14,174.07
Total 5,965.72 71,588.59 71,588.59 74,738.49 78,026.98 81,460.17 85,044.42

Schedule No. 3 shows the Annual Water Consumption of ManiTela

Schedule No. 4 Insurance

Schedule No. 4
INSURANCE
Item Unit Cost Total Cost Insurance rate Monthly Insurance rate Annual Insurance rate 2020 2021 2022 2023 2024
Vehicle 2 250,000.00 500,000.00 0.05 2,083.33 25,000.00
Facility 1 6,000,000.00 6,000,000.00 0.05 25,000.00 300,000.00
Total 27,083.33 325,000.00 325,000.00 339,300.00 354,229.20 369,815.28 386,087.16

Schedule No. 4 shows the Annual cost allotted for Insurance

Schedule No. 5 Internet

Schedule No. 5
INTERNET
Monthly cost Annual cost 2020 2021 2022 2023 2024
Internet 1,699.00 20,388.00
Total 20,388.00 20,388.00 20,388.00 20,388.00 20,388.00 20,388.00

Schedule No. 5 shows the Annual Internet Consumption of ManiTela

Schedule No. 6 Direct Materials

Schedule No. 6
DIRECT MATERIAL OF ManiTela
Raw Materials Quantity Unit Price Daily Production Daily Production Cost Monthly Production CostAnnual Production Cost 2020 2021 2022 2023 2024
Peanut shells 104 sacks 50 24 5,200.00 104,000.00 1,248,000.00 1,248,000.00 1,297,920.00 1,349,836.80 1,403,830.27 1,459,983.48
Sodium Hydroxide 8 Kg 215 24 1,720.00 34,400.00 412,800.00 412,800.00 429,312.00 446,484.48 464,343.86 482,917.61
Dye 10 8Oz 349 24 3,490.00 69,800.00 837,600.00 837,600.00 871,104.00 905,948.16 942,186.09 979,873.53
Total 208,200.00 2,498,400.00 2,598,336.00 2,702,269.44 2,810,360.22 2,922,774.63

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Schedule No. 6 shows the Annual Production Cost with 24 rolls daily production of ManiTela

Schedule No. 7 Direct and Indirect Labor

Schedule No.7
INDIRECT LABOR
Position No. of worker Monthly Salary Daily Wage rate Total Monthly Salary Annual Salary 2020 2021 2022 2023 2024
Production Supervisor 1 25000 1,250 25,000.00 300,000.00 300,000.00 316,200.00 333,274.80 351,271.64 370,240.31
Quality Control Inspector 1 20000 1,000 20,000.00 240,000.00 240,000.00 252,960.00 266,619.84 281,017.31 296,192.25
Maintenance officer 1 15000 700.00 15,000.00 180,000.00 180,000.00 189,720.00 199,964.88 210,762.98 222,144.18
Inventory Checker 1 14000 700.00 14,000.00 168,000.00 168,000.00 177,072.00 186,633.89 196,712.12 207,334.57
Sub-total 74,000.00 888,000.00 888,000.00 935,952.00 986,493.41 1,039,764.05 1,095,911.31
Fringe Benefits
Pag-ibig (2%) 1,480.00 17,760.00 17,760.00 18,719.04 19,729.87 20,795.28 21,918.23
SSS (7.37%) 5,453.80 65,445.60 65,445.60 68,979.66 72,704.56 76,630.61 80,002.36
Philhealth (2%) 1,480.00 17,760.00 17,760.00 18,719.04 19,729.87 20,795.28 21,710.27
Sub-total 8,413.80 100,965.60 100,965.60 106,417.74 112,164.30 118,221.17 123,630.86
13-month pay Bonus 74,000.00 74,000.00 77,996.00 82,207.78 86,647.00 91,325.94
Total 82,413.80 1,062,965.60 1,062,965.60 1,120,365.74 1,180,865.49 1,244,632.23 1,310,868.11

DIRECT LABOR
Production Workers 9 6,400.00 320.00 57,600.00 691,200.00 691,200.00 733,363.20 778,098.36 825,562.35 875,921.66
Sub-total 57,600.00 691,200.00 691,200.00 733,363.20 778,098.36 825,562.35 875,921.66
Fringe Benefits
Pag-ibig (2%) 1,152.00 13,824.00 13,824.00 14,570.50 15,357.30 16,186.60 17,060.67
SSS (7.37%) 4,245.12 50,941.44 50,941.44 53,692.28 56,591.66 59,647.61 62,868.58
Philhealth (2%) 1,152.00 13,824.00 13,824.00 14,570.50 15,357.30 16,186.60 17,060.67
Sub-total 6,549.12 78,589.44 78,589.44 82,833.27 87,306.27 92,020.80 96,989.93
13th-month pay bonus 57,600.00 57,600.00 61,113.60 64,841.53 68,796.86 72,993.47
Total 64,149.12 827,389.44 827,389.44 877,310.07 930,246.15 986,380.02 1,045,905.06

Schedule No. 7 shows the Total Labor Expense of Direct and Indirect Labor of ManiTela for five years

Schedule No. 8 Administrative Labor

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Schedule No.8
ADMINISTRATIVE LABOR
Admin Personnel No. of Personnel Monthly Salary Daily Wage Rate Total Monthly Salary Annual Salary 2020 2021 2022 2023 2024
Manager 1 35,000.00 1,750.00 35,000.00 420,000.00 420,000.00 445,620.00 472,802.82 501,643.79 532,244.06
Secretary 1 20,000.00 1,000.00 20,000.00 240,000.00 240,000.00 254,640.00 270,173.04 286,653.60 304,139.46
Accounting Supervisor 1 26,000.00 1,300.00 26,000.00 312,000.00 312,000.00 331,032.00 351,224.95 372,649.67 395,381.30
Accounting Clerk 1 15,000.00 750.00 15,000.00 180,000.00 180,000.00 190,980.00 202,629.78 214,990.20 228,104.60
Admin and Finance Supervisor 1 26,000.00 1,300.00 26,000.00 312,000.00 312,000.00 331,032.00 351,224.95 372,649.67 395,381.30
Admin and Finance Clerk 1 15,000.00 750.00 15,000.00 180,000.00 180,000.00 190,980.00 202,629.78 214,990.20 228,104.60
Human Resource Officer 1 20,000.00 1,000.00 20,000.00 240,000.00 240,000.00 254,640.00 270,173.04 286,653.60 304,139.46
Sales and Marketing Supervisor 1 25,000.00 1,250.00 25,000.00 300,000.00 300,000.00 318,300.00 337,716.30 358,316.99 380,174.33
Sales and Marketing Specialist 1 20,000.00 1,000.00 20,000.00 240,000.00 240,000.00 254,640.00 270,173.04 286,653.60 304,139.46
Sales and Marketing Clerk 1 16,000.00 800.00 16,000.00 192,000.00 192,000.00 203,712.00 216,138.43 229,322.88 243,311.57
Bookkeeper 1 16,000.00 800.00 16,000.00 192,000.00 192,000.00 203,712.00 216,138.43 229,322.88 243,311.57
Purchaser 1 10,000.00 500.00 10,000.00 120,000.00 120,000.00 127,320.00 135,086.52 143,326.80 152,069.73
Logistics Officer 1 12,000.00 600.00 12,000.00 144,000.00 144,000.00 152,784.00 162,103.82 171,992.16 182,483.68
Driver 2 8,000.00 400.00 16,000.00 192,000.00 192,000.00 203,712.00 216,138.43 229,322.88 243,311.57
Security Officer 2 12,000.00 600.00 24,000.00 288,000.00 288,000.00 305,568.00 324,207.65 343,984.31 364,967.36
Sub-total 296,000.00 3,552,000.00 3,552,000.00 3,768,672.00 3,998,560.99 4,242,473.21 4,501,264.08
Fringe Benefits
Pag-ibig (2%) 5,920.00 71,040.00 71,040.00 74,876.16 78,919.47 83,181.12 87,672.90
SSS (7.37%) 21,815.20 261,782.40 261,782.40 275,918.65 290,818.26 306,522.44 323,074.65
Philhealth (2%) 5,920.00 71,040.00 71,040.00 74,876.16 78,919.47 83,181.12 87,672.90
Sub-total 33,655.20 403,862.40 403,862.40 425,670.97 448,657.20 472,884.69 498,420.46
13th-month pay bonus 296,000.00 296,000.00 296,000.00 309,024.00 322,621.06 336,816.38 351,636.30
Total 4,251,862.40 4,251,862.40 4,503,366.97 4,769,839.25 5,052,174.29 5,351,320.85

Schedule No. 8 shows the Total Administrative Expense from 2020-202

Schedule No. 9 Office Tools, Equipment and Supplies

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Schedule No.9
OFFICE TOOL/EQUIPMENTS/SUPPLIES
Quantity Costs (Php) Total Costs (Php)
Equipment
Computer 14.0 12,000.0 168,000.0
Printer 4.0 3,700.0 14,800.0
Aircon 2.0 14,800.0 29,600.0
Sub-total 30,500.0 212,400.0
Safety Equipment
Fire Exinguisher 2.0 1,400.0 2,800.0
Sub-total 2,800.0
Office Supplies
Stapler 7.0 150.0 1,050.0
Puncher 7.0 110.0 770.0
Scissors 7.0 95.0 665.0
White Board 4.0 395.0 1,580.0
Calculator 7.0 450.0 3,150.0
Tape 7.0 200.0 1,400.0
Ink Set 8.0 75.0 600.0
Marker Pen 28.0 120.0 3,360.0
Ball Pen 50.0 5.6 280.0
Envelope 280.0 5.0 1,400.0
Bondpaper Ream 16.0 210.0 3,360.0
Furniture Desk 14.0 2,650.0 37,100.0
Ergonomic Chair 14.0 2,450.0 34,300.0
Filing Cabinet 4.0 5,500.0 22,000.0
Monoblock Chair 14.0 250.0 3,500.0
Trashcan 7.0 270.0 1,890.0
Couch 1.0 13,000.0 13,000.0
Sub-total 129,405.0
Total 344,605.0
Schedule No. 9 shows the Total Cost for Office Tools, Equipment and Supplies

Schedule No. 10 Manufacturing Tools and Equipment

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Sc h e d u le No . 10
MA NUFA C TURING TOOLS & EQUIPMENT
Mac h in e rie s an d Eq u ip m e n t Q ua nt it y Co s t ($) To t a l Co s t s (Php )
Grinding and Separating 1.00 1,500.00 79,500.00
Cleaning 1.00 900.00 47,700.00
Molding 1.00 800.00 42,400.00
Drying 1.00 1,500.00 79,500.00
Rolling 1.00 1,000.00 53,000.00
Exhaust Fan 2.00 1,100.00 58,300.00
Sub-total 360,400.00
Fixtures (Php)
Toilet Bowl 4.00 4,920.00 19,680.00
Shower 4.00 3,600.00 14,400.00
Sink 2.00 3,600.00 7,200.00
Towl Holder 4.00 1,980.00 7,920.00
Tissue Holder 4.00 824.00 3,296.00
Locker 2.00 22,000.00 44,000.00
Clock 1.00 220.00 220.00
Sub-total 96,716.00
Safety Gear
Face Mask 30.00 1,200.00 36,000.00
Gloves 30.00 300.00 9,000.00
Hair Nets 30.00 450.00 13,500.00
Sub-total 58,500.00
Safety Equipment
Fire Extinguisher 4.00 5,600.00 22,400.00
Sub-total 22,400.00
Total 538,016.00

Schedule No. 10 shows the Total Cost for Manufacturing Tools and Equipment

Schedule No. 11 Bill of Materials

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Sc h e d u le No . 11
BILL OF MA TERIA LS
Ra w Ma t e r ia ls Co s t
Ex c a v a t io n / Filing / La yo u t in g 86 ,0 00 .0 0
Fo un d a t io n Wo r k s 96 ,0 00 .0 0
C o lum n Wo r k s 52 ,8 00 .0 0
Tie Be a m Wo r ks 48 ,4 00 .0 0
Sla b o n Fill wo r ks 1 74 ,0 00 .00
Ro o f Be a m Wo r ks 1 68 ,0 00 .00
C HB wa lls 1 15 ,7 00 .00
Pla s t e r in g 1 25 ,4 95 .00
Ro o f in g Wo r k s 3 10 ,8 80 .00
C e ilin g Wo r k s 2 58 ,2 50 .00
Pa in t in g Wo r k s 52 ,6 66 .0 0
Tiling Wo r k s 1 65 ,0 00 .00
Plum b in g Wo r k s 1 40 ,4 80 .00
Do o r Wo r ks 36 ,0 00 .0 0
Me t a l Wo r ks 1 08 ,0 00 .00
So lf le x Wo r ks 68 ,0 00 .0 0
Fo r m Wo r k s 1 01 ,2 00 .00
Ele c t r ic a l Wo r ks 1 03 ,0 00 .00
To t a l Mat e ria l C o s t 2 ,2 09 ,8 71 .0 0
La b o r 1 ,5 00 ,0 00 .0 0
To t a l Dir e c t C o s t 8 86 ,0 00 .00
O ve r a ll C o nt r a c t o r 's Ma na g e m e nt 1 ,0 04 ,5 01 .9 0
Gla s s a n d Alu m inu m 2 69 ,7 11 .55
C o nt in ge n c y (a p p r o x.5 % o f m a t 'l) 1 29 ,9 15 .55
To t a l Pro je c t C o s t 6 , 00 0 ,0 00 .0 0

Schedule No. 11 shows the Total Project Cost of 6,000,00.00 Php for Bill of Materials. Note that the cost
for Bill of Materials are assumptions.

Schedule No. 12 Pre-Operating Expense

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Schedule No. 12
PRE OPERATING EXPENSE
Cost
Business Permit and Liscensing
Barangay Clearance 50.00
Mayor's Permit 500.00
Building's Permit 500.00
Documentary Stamp 15.00
Police Clearance 50.00
Fire Safety Inspection 1,150.00
Licensing Plate with sticker 300.00
Sanitary and Health Certificate 880.00
Business Name Registration 250.00
Documentary Stamp 15.00
Certificate of Registration with BIR
Certificate of Registration 500.00
Certificate fee 100.00
Documentary Stamp 15.00
Certificate if occupancy 5,000.00
ECC 11,775.00
Registration Fee 500.00
Trainings
Seminars and Trainings 63,000.00
Total 84,600.00
Schedule No. 12 shows the Total Cost of 84,600 Php for Pre-Operating Expense

Schedule No. 13 Auxiliary Equipment

Schedule No. 13
AUXILIARY EQUIPMENT
Equipment Quantity Costs Total Costs
Vehicle 2 250,000.00 500,000.00
Total 500,000.00

Schedule No. 13 shows the Total Cost of 500,000 Php for Auxiliary Equipment

Schedule No. 14 Land Cost

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Schedule No. 14
LAND
Area Cost per sq. meter Total Cost
Land 600 2,000 1,200,000.00

Schedule No. 14 shows the Total Cost for Land

Schedule No. 15 Depreciation Schedule for Manufacturing
Schedule No. 15
DEPRECIATION SCHEDULE FOR MANUFACTURING (EQUIPMENT/FURNITURE/FIXTURES)
Item Quanti ty Cos ts Total Cos ts Us eful yea rs Sa lva ge Val ue Annual Depreci ati on
Grinder and Separator 1.00 79,500.00 79,500.00 20.00 7,950.00 3,577.50
Cleaning 1.00 47,700.00 47,700.00 20.00 4,770.00 2,146.50
Molding 1.00 42,400.00 42,400.00 20.00 4,240.00 1,908.00
Drying 1.00 79,500.00 79,500.00 20.00 7,950.00 3,577.50
Rolling 1.00 53,000.00 53,000.00 20.00 5,300.00 2,385.00
Exhaust Fan 2.00 29,150.00 58,300.00 10.00 5,830.00 5,247.00
Toilet Bowl 4.00 4,920.00 19,680.00 20.00 1,968.00 885.60
Shower 4.00 3,600.00 14,400.00 20.00 1,440.00 648.00
Sink 2.00 3,600.00 7,200.00 20.00 720.00 324.00
Towel Holder 4.00 1,980.00 7,920.00 15.00 792.00 475.20
Tissue Holder 4.00 824.00 3,296.00 15.00 329.60 197.76
Locker 2.00 22,000.00 44,000.00 20.00 4,400.00 1,980.00
Table 2.00 3,300.00 6,600.00 8.00 660.00 742.50
Clock 1.00 220.00 220.00 20.00 22.00 9.90
Total 24,104.46

Schedule No. 15 shows the data for Depreciation Schedule for Manufacturing

Schedule No. 16 Depreciation Schedule for Sales & Admin

Sc he dule No . 16
D EPREC IA TION SC HED ULE FOR SALES & A DMINISTRA TIVE (EQUIPMENT/ FURNITURES/ FIXTURES)
It e m Q ua nt it y Co s t s To t a l Co s t s Us e ful ye a rs Sa lva ge Va lue Annua l De p re c ia t io n
Computer 14.00 12,000.00 168,000.00 15.00 16,800.00 10,080.00
Printer 4.00 3,700.00 14,800.00 5.00 1,480.00 2,664.00
Aircon 2.00 14,800.00 29,600.00 10.00 2,960.00 2,664.00
Fire Exinguisher 2.00 1,400.00 2,800.00 10.00 280.00 252.00
Furniture Desk 14.00 2,650.00 37,100.00 8.00 3,710.00 4,173.75
Ergonomic Chair 14.00 2,450.00 34,300.00 15.00 3,430.00 2,058.00
Filing Cabinet 4.00 5,500.00 22,000.00 10.00 2,200.00 1,980.00
Monoblock Chair 14.00 250.00 3,500.00 15.00 350.00 210.00
Trashcan 7.00 270.00 1,890.00 15.00 189.00 113.40
Couch 1.00 13,000.00 13,000.00 12.00 1,300.00 975.00
Sub Total 326,990.00 25,170.15
Building 1.00 6,000,000.00 6,000,000.00 50.00 600,000.00 108,000.00
Sub Total 108,000.00
Auxilliary Equipment 2.00 250,000.00 500,000.00 20.00 50,000.00 22,500.00
Sub Total 22,500.00
Total 155,670.15

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Schedule No. 16 shows the data for Depreciation Schedule for Sales & Admin

Schedule No. 17 Repair and Maintenance Cost

Sc h e d u le No . 17
REPA IR A ND MA INTA INA NC E C OST
MANUFACTURING EQ UIPMENTS
Ite m s Q ua nt it y Unit Co s t s To t a l Co s t s Ye a rly Re p a ir & Ma int e na nc e Co s t
Grinder and Separator 1.00 79,500.00 79,500.00 3,577.50
Cleaning 1.00 47,700.00 47,700.00 2,146.50
Molding 1.00 42,400.00 42,400.00 1,908.00
Drying 1.00 79,500.00 79,500.00 3,577.50
Rolling 1.00 53,000.00 53,000.00 2,385.00
Exhaust Fan 2.00 29,150.00 58,300.00 5,247.00
Su b -to tal 360,400.00 18,841.50
O FFICE EQ UIPMENTS
Ite m s Q ua nt it y Unit c o s t s To t a l Co s t s Ye a rly Re p a ir & Ma int e na nc e Co s t
Computer 14.00 12,000.00 168,000.00 10,080.00
Printer 4.00 3,700.00 14,800.00 2,664.00
Aircon 2.00 14,800.00 29,600.00 2,664.00
Ve hic le s 2.00 250,000.00 500,000.00 22,500.00
Su b -to tal 712,400.00 37,908.00
To tal 56,749.50

Schedule No. 17 shows the Total Cost for Repair and Maintenance

Schedule No. 18 Advertising Expense

Schedule No. 18
ADVERTISING EXPENSE
2020 2021 2022 2023 2024
COST 750,000.00 955,000.00 1,705,000.00 1,875,000.00 2,075,000.00

Schedule No. 18 shows the Total Expense for Advertising

Schedule No. 19 Packaging Expense

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Schedule No. 19
PACKAGING EXPENSE
2020 2021 2022 2023 2024
COST 5,100.00 5,324.40 5,558.67 5,803.26 6,058.60

Schedule No. 19 shows the Total Expense for Packaging

Schedule No. 20 Manufacturing Overhead

Sc he dule No . 20
Manufac turing Ov e rhe ad No te s Mo nthly 2020 2021 2022 2023 2024
Ind ire ct Lab o r Sche d ule No . 7 82,413.80 1,062,965.60 1,120,365.74 1,180,865.49 1,244,632.23 1,310,868.11
Wa te r Sche d ule No . 3 4,971.43 59,657.16 62,282.08 65,022.49 67,883.48 70,870.35
Ele ctricity Sche d ule No . 1 52,388.03 628,656.38 656,317.26 685,195.22 715,343.81 746,818.93
Fuel Sche d ule No . 2 8,600.00 103,200.00 107,740.80 112,481.40 117,430.58 122,597.52
Ins ura nc e Sche d ule No . 4 27,083.33 325,000.00 339,300.00 354,229.20 369,815.28 386,087.16
Sa fe t y Ge ars & Eq uip m e nt Sche d ule No . 10 6,741.67 80,900.00 84,459.60 88,175.82 92,055.56 96,106.00
Pa cka ging Sche d ule No . 19 425.00 5,100.00 5,324.40 5,558.67 5,803.26 6,058.60
Re p a ir a nd m ainte na nc e Sche d ule No . 17 4,729.13 56,749.50 59,246.48 61,853.32 64,574.87 67,416.16
Dep re cia t io n Sche d ule No . 15 2,008.71 24,104.46 24,104.46 24,104.46 24,104.46 24,104.46
To tal MOH 189,361.09 2,346,333.10 2,459,140.81 2,577,486.07 2,701,643.51 2,830,927.30
MOH ne t o f de pn & pre -o pe rating 2,241,328.64 2,435,036.35 2,553,381.61 2,677,539.05 2,806,822.84

Schedule No. 20 shows the calculation for Manufacturing Overhead

Schedule No. 21 Sales and Administrative Expense

Schedule No. 21
Sales and Administrative Expense Notes Monthly 2020 2021 2022 2023 2024
Salary of Administrative Personnel Schedule No. 8 354,321.87 4,251,862.40 4,503,366.97 4,769,839.25 5,052,174.29 5,351,320.85
Incentives Schedule No. 30 31,660.80 379,929.60 420,007.68 462,821.76 508,608.00 530,956.80
Travel Expense -
Office Supplies Schedule No. 9 1,467.92 17,615.00 18,390.06 19,199.22 20,043.99 20,925.92
Advertising Expense Schedule No. 18 750,000.00 955,000.00 1,705,000.00 1,875,000.00 2,075,000.00
Utility Expense/Office Elcectricity Schedule No. 1 14,601.09 175,213.07 182,922.44 190,971.03 199,373.75 208,146.20
Internet Expense Schedule No. 5 1,699.00 20,388.00 20,388.00 20,388.00 20,388.00 20,388.00
Depreciation Schedule No. 16 12,972.51 155,670.15 155,670.15 155,670.15 155,670.15 155,670.15
Total SAE 479,223.18 5,750,678.22 6,255,745.30 7,323,889.41 7,831,258.18 8,362,407.92
SAE net of depn & pre-operating 5,577,393.07 6,100,075.15 7,168,219.26 7,675,588.03 8,206,737.77

Schedule No. 21 shows the expense for Sales and Administrative, year 2020 to 2024

Schedule No. 22 Drawings

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Schedule No. 22
Drawings 2020 2021 2022 2023 2024
COST 300,000 325,000 350,000 375,000 400,000

Schedule No. 22 shows the company’s drawings from year 2020-2024 with an amount of Php300,000
and with an increase of Php25,000 annually.

Schedule No. 23 Summary of Raw Materials (In Units)

Schedule No. 23
SUMMARY OF RAW MATERIALS ( IN UNITS)
Year Purchases Usage Beg. Inv End. Inv
2020 21,528 21,216 0 312
2021 22,464 22,464 312 312
2022 23,712 23,712 312 312
2023 24,960 24,960 312 312
2024 24,960 24,960 312 312

Schedule No. 23 shows the Summary of Raw Materials (In Units)

Schedule No. 24 Summary of Raw Materials (In Pesos)

Schedule No. 24
SUMMARY OF RAW MATERIALS (IN PESOS)
Purchases Usage Beg. Inv End. Inv
2020 2,514,000.00 2,498,400.00 - 15,600.00
2021 2,598,336.00 2,598,336.00 15,600.00 15,600.00
2022 2,702,269.44 2,702,269.44 15,600.00 15,600.00
2023 2,810,360.22 2,810,360.22 15,600.00 15,600.00
2024 2,922,774.63 2,922,774.63 15,600.00 15,600.00

Schedule No. 24 shows the Summary of Raw Materials (In Pesos) for year 2020-2024

Schedule No. 25 Summary of Raw Materials Purchased

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Schedule No. 25
SUMMARY OF RAW MATERIALS PURCHASED
In Cash (90%) A/P (10%) Total Purchase
2020 2,262,600.00 251,400.00 2,514,000.00
2021 2,338,502.40 259,833.60 2,598,336.00
2022 2,432,042.50 270,226.94 2,702,269.44
2023 2,529,324.20 281,036.02 2,810,360.22
2024 2,630,497.16 292,277.46 2,922,774.63

Schedule No. 25 shows the Summary of Raw Materials Purchased for year 2020 to 2024

Schedule No. 26 Selling Price

Schedule No. 26
SELLING PRICE OF Manitela
Particulars Notes Costs
Direct Material Schedule No. 6 10,410.00
Direct Labor Schedule No. 7 3,207.46
Prime Cost 13,617.46
Overhead:
Indirect Labor Schedule No. 7 4,120.69
Electricity Schedule No. 1 2,619.40
Water Schedule No. 3 248.57
Fuel Schedule No. 2 430.00
Insurance Schedule No. 4 1,354.17
Safety Gears Schedule No. 10 337.08
Packaging Expense Schedule No. 19 21.25
Repair and Maintenance Schedule No. 17 236.46
Total Overhead Cost 9,367.62
Total Production Cost 22,985.08
Selling Expense Schedule No. 18 2,054.79
Total 25,039.87
Daily Output Production 24.00
Cost per unit 1,043.33
Mark Up (260%) 2.7 2,816.99
3,860.31
Selling Price 3,860.00

Schedule No. 26 shows the Selling Price of ManiTela

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Schedule No. 27 Actual Cost and Selling Price

Schedule No. 27
Actual Cost and Selling Price
Year Actual Cost Note Selling Price
1 1,043.33 3,860
2 1,089.23 4,030
3 1,137.16 Schedule No. 26 4,207
4 1,187.20 4,392
5 1,239.43 4,586

Schedule No. 27 shows the Actual Cost and Selling Price of ManiTela for the first five (5) years

Schedule No. 28 Finished Good Ending Inventory in Units

Schedule No. 28
Finished Goods Ending Inventory (In Units)
Year Production Sales Note Beg End
1 4,968 4,896 0 72
2 5,184 5,184 72 72
3 5,472 5,472 72 72
4 5,760 5,760 72 72
5 5,760 5,760 72 72

Schedule No. 28 shows Finished Good Ending Inventory in Units for the first five (5) years

Schedule No. 29 Finished Goods Ending Inventory in Pesos

Schedule No. 29
Finished Goods Ending Inventory (In Php)
Year Production Sales Beg End
1 5,183,253 18,996,480.00 - 75,119.61
2 5,646,591 21,000,384.00 75,119.61 78,424.87
3 6,222,543 23,141,088.00 78,424.87 81,875.57
4 6,838,247 25,430,400.00 81,875.57 85,478.09
5 7,139,130 26,547,840.00 85,478.09 89,239.13

Schedule No. 29 shows Finished Good Ending Inventory in Pesos for the first five (5) years

Schedule No. 30 Incentives

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Schedule No. 30
INCENTIVES
Year GROSS SALES Note INCENTIVES
2020 18,996,480.00 379,929.60
2021 21,000,384.00 420,007.68
2022 23,141,088.00 Schedule No. 29 462,821.76
2023 25,430,400.00 508,608.00
2024 26,547,840.00 530,956.80

Schedule No. 30 shows the Incentives for the first five (5) years

Schedule No. 31 Sales Returns

Schedule No. 31
Sales Returns
Year Gross Sales Note Sales Returns
2020 18,996,480.00 189,964.80
2021 21,000,384.00 210,003.84
2022 23,141,088.00 Schedule No. 29 231,410.88
2023 25,430,400.00 254,304.00
2024 26,547,840.00 265,478.40

Schedule No. 31 shows the Incentives for the first five (5) years

Schedule No. 32 Sales Deals

Schedule No. 32
Sales Deals
Year Annual Production Selling Price Sales Deals
2020 4,896 3,860 377,971.20
2021 5,184 4,030 417,813.81
2022 5,472 4,207 460,430.82
2023 5,760 4,392 505,989.24
2024 5,760 4,586 528,252.76

Schedule No. 32 shows the Sales Deal for the first five (5) years

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Schedule No. 33 Net Sales

Schedule No. 33
NET SALES
Year Sales SALES RETURNS SALE DEALS NET SALES CASH SALES A/R
2020 18,996,480.00 189,964.80 377,971.20 18,428,544.00 16,585,689.60 1,842,854.40
2021 21,000,384.00 210,003.84 417,813.81 20,372,566.35 18,335,309.71 2,037,256.63
2022 23,141,088.00 231,410.88 460,430.82 22,449,246.30 20,204,321.67 2,244,924.63
2023 25,430,400.00 254,304.00 505,989.24 24,670,106.76 22,203,096.09 2,467,010.68
2024 26,547,840.00 265,478.40 528,252.76 25,754,108.84 23,178,697.95 2,575,410.88

Schedule No. 33 shows the Net Sales for the first five (5) years

Schedule No. 34 Warranty Expense

Schedule No. 34
Warranty Expense
Year Net Sales Note Sales Returns
2020 18,428,544.00 184,285.44
2021 20,372,566.35 203,725.66
2022 22,449,246.30 224,492.46
2023 24,670,106.76 246,701.07
2024 25,754,108.84 257,541.09

Schedule No. 34 shows the Warranty Expense for the first five (5) years

Schedule No. 35 Total Project Cost

Schedule No. 35
TOTAL PROJECT COST

Investments Notes Equity Loan Total

Facility Schedule No. 11 1,000,000.00 5,000,000.00 6,000,000.00
Land Schedule No. 14 400,000.00 800,000.00 1,200,000.00
Auxilliary Schedule No. 13 500,000.00 500,000.00
Machines & Equipment & Fixtures Schedule No. 10 263,716.00 200,000.00 463,716.00
Safety Gears and Equipment Schedule No. 10 80,900.00 80,900.00
Admin Furnitures and Fixtures Schedule No. 9 111,790.00 111,790.00
Offi ce supplies Schedule No. 9 17,615.00 17,615.00
Total Fixed Asset 8,374,021.00
Six Months Working Capital Schedule No. 36 3,197,383.85 2,365,000.00 5,562,383.85
Pre operating Expense w/ training Schedule No. 12 21,600.00 63,000.00 84,600.00
Total Fixed Asset 5,593,004.85 8,428,000.00 14,021,004.85
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Schedule No. 35 shows the Total Project Cost of ManiTela

Schedule No. 36 Six Months Working Capital

Schedule No. 36
SIX MONTHS WORKING CAPITAL
Notes Annual Cost 6-Months WC
Direct Materials Schedule No. 6 2,498,400.00 1,249,200.00
Direct Labor Schedule No. 7 1,062,965.60 531,482.80
Prime Cost 1,780,682.80
Manufacturing Overhead
Indirect Labor Schedule No. 7 1,062,965.60 531,482.80
Electricity Schedule No. 1 628,656.38 314,328.19
Water Schedule No. 3 59,657.16 29,828.58
Fuel Schedule No. 2 103,200.00 51,600.00
Insurance Schedule No. 4 325,000.00 162,500.00
Safety Gears Schedule No. 10 117,000.00 58,500.00
Safety Equipment Sched ule No. 10 44,800.00 22,400.00
Packaging Expense Schedule No. 19 5,100.00 2,550.00
Repair and Maintenance Schedule No. 17 56,749.50 28,374.75
Total Manufacturing Overhead 1,201,564.32
Sale and Administration
Advertisement Expense Schedule No. 18 750,000.00 375,000.00
Office Supplies Schedule No. 9 258,810.00 129,405.00
Internet Schedule No. 5 20,388.00 10,194.00
Admin Labor Schedule No. 8 3,955,862.40 1,977,931.20
Power Consumption Schedule No. 1 175,213.07 87,606.53
Total Sale and Administration 2,580,136.73
Total Six Month Working Capital 5,562,383.85

Schedule No. 36 shows total six (6) months working capital of ManiTela
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Schedule No. 37 Sample Amortization Schedule

Schedule No. 37
Sample Amortization Schedule
Interest rate of 8.5% per Annum
Payable in 5 years Loan Amount 8,428,000.00
Year Principal Due Interest Due Total Amortization O/B Principal
Y1Qtr 1 342,572.25 179,095.00 521,667.25 8,085,427.75
Y1Qtr 2 349,851.91 171,815.34 521,667.25 7,735,575.83
Y1Qtr 3 357,286.27 164,380.99 521,667.25 7,378,289.56
Y1Qtr 4 364,878.60 156,788.65 521,667.25 7,013,410.96
TOTAL 2020 1,414,589.04 672,079.98 2,086,669.02
Y2Qtr 1 372,632.27 149,034.98 521,667.25 6,640,778.69
Y2Qtr 2 380,550.71 141,116.55 521,667.25 6,260,227.98
Y2Qtr 3 388,637.41 133,029.84 521,667.25 5,871,590.57
Y2Qtr 4 396,895.95 124,771.30 521,667.25 5,474,694.62
TOTAL 2021 1,538,716.34 547,952.67 2,086,669.02
Y3Qtr 1 405,329.99 116,337.26 521,667.25 5,069,364.63
Y3Qtr 2 413,943.26 107,724.00 521,667.25 4,655,421.37
Y3Qtr 3 422,739.55 98,927.70 521,667.25 4,232,681.82
Y3Qtr 4 431,722.77 89,944.49 521,667.25 3,800,959.05
TOTAL 2022 1,673,735.57 412,933.45 2,086,669.02
Y3Qtr 1 440,896.87 80,770.38 521,667.25 3,360,062.18
Y3Qtr 2 450,265.93 71,401.32 521,667.25 2,909,796.25
Y3Qtr 3 459,834.08 61,833.17 521,667.25 2,449,962.16
Y3Qtr 4 469,605.56 52,061.70 521,667.25 1,980,356.60
TOTAL 2023 1,820,602.45 266,066.57 2,086,669.02
Y3Qtr 1 479,584.68 42,082.58 521,667.25 1,500,771.93
Y3Qtr 2 489,775.85 31,891.40 521,667.25 1,010,996.08
Y3Qtr 3 500,183.59 21,483.67 521,667.25 510,812.49
Y3Qtr 4 510,812.49 10,854.77 521,667.25 (0)
TOTAL 2024 1,980,356.60 106,312.41 2,086,669.02
GRAND TOTAL 8,428,000.00 2,005,345.09 10,433,345.09

Schedule No. 37 shows the Sample Amortization Schedule with an interest rate of 8.50%

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Schedule No. 38 Cost of Goods Sold

Schedule No. 38
COST OF GOODS SOLD
NOTES 2020 2021 2022 2023 2024
Direct material Schedule No. 24 2,498,400.00 2,598,336.00 2,702,269.44 2,810,360.22 2,922,774.63
Direct labor Schedule No. 7 827,389.44 877,310.07 930,246.15 986,380.02 1,045,905.06
PRIME COSTS 3,325,789.44 3,475,646.07 3,632,515.59 3,796,740.24 3,968,679.68
Manufacturing Overhead Schedule No. 20 2,346,333.10 2,459,140.81 2,577,486.07 2,701,643.51 2,830,927.30
MANUFACTURING Costs 5,672,122.54 5,934,786.88 6,210,001.66 6,498,383.76 6,799,606.98
Add: FG Beg. Inv. - 75,119.61 78,424.87 81,875.57 85,478.09
Cost of Goods Available for Sale 5,672,122.54 6,009,906.49 6,288,426.53 6,580,259.32 6,885,085.07
Less: Finished Goods Ending Inventory Schedule No. 29 75,119.61 78,424.87 81,875.57 85,478.09 89,239.13
COGS 5,597,002.93 5,931,481.62 6,206,550.97 6,494,781.23 6,795,845.95

Schedule No. 38 shows the cost of goods sold of ManiTela from year 2020 to 2024

Schedule No. 39 Income Statement

Schedule No. 39
INCOME STATEMENT
NOTES 2020 2021 2022 2023 2024
Gross Sales Schedule No. 29 18,996,480.00 21,000,384.00 23,141,088.00 25,430,400.00 26,547,840.00
Less: Sales Return Schedule No. 31 189,964.80 210,003.84 231,410.88 254,304.00 265,478.40
Sales Deals Schedule No. 32 377,971.20 417,813.81 460,430.82 505,989.24 528,252.76
Net Sales 18,428,544.00 20,372,566.35 22,449,246.30 24,670,106.76 25,754,108.84
Less: Cost of goods sold Schedule No. 38 5,597,002.93 5,931,481.62 6,206,550.97 6,494,781.23 6,795,845.95
Gross Profit 12,831,541.07 14,441,084.73 16,242,695.33 18,175,325.53 18,958,262.89
Less: Sales and Administrative Exp. Schedule No. 21 5,750,678.22 6,255,745.30 7,323,889.41 7,831,258.18 8,362,407.92
Amortized Pre-Operating Expense Schedule No. 12 84,600.00
Operating income 6,996,262.86 8,185,339.43 8,918,805.92 10,344,067.35 10,595,854.97
Less: Interest Expense Schedule No. 37 672,079.98 547,952.67 412,933.45 266,066.57 106,312.41
Net Profit Before Donations 6,324,182.88 7,637,386.75 8,505,872.47 10,078,000.79 10,489,542.56
Less: Donations 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00
Net Profit Before Income Tax 6,174,182.88 7,437,386.75 8,255,872.47 9,778,000.79 10,139,542.56
Less: Income Tax 1,852,254.86 2,231,216.03 2,476,761.74 2,933,400.24 3,041,862.77
VAT Schedule No. 44 1,879,206.96 2,087,577.12 2,310,347.17 2,548,771.79 2,661,360.09
NET PROFIT 2,442,721.05 3,118,593.61 3,468,763.56 4,295,828.76 4,436,319.70

Schedule No. 39 shows the total net profit of ManiTela from year 2020 to 2024

Schedule No. 40 Cash Flow Statement

Schedule No. 40
CASHFLOW STATEMENT
Notes Pre-operating 2020 2021 2022 2023 2024
Cash-inflows:

Cash Sales Schedule No. 33 16,585,689.60 18,335,309.71 20,204,321.67 22,203,096.09 23,178,697.95

Accounts Receivable Schedule No. 33 1,842,854.40 2,037,256.63 2,244,924.63 2,467,010.68
Loan Schedule No. 35 8,428,000.00 - - - - -
Equity Schedule No. 35 5,593,004.85 - - - - -
Total Cash Inflows 14,021,004.85 16,585,689.60 20,178,164.11 22,241,578.30 24,448,020.72 25,645,708.63
Cash-Outflow
Facility Schedule No. 35 6,000,000.00
Land Schedule No. 35 1,200,000.00
Auxillary Equipment Schedule No. 35 500,000.00
Manufacturing Equipment and Materials Schedule No. 35 463,716.00
Manufacturing Supplies Schedule No. 35
Safety Gears and Equipment Schedule No. 35 80,900.00
Office Supplies Schedule No. 35 17,615.00
Office Furnitures and Fixtures Schedule No. 35 111,790.00
Pre-operating expenses Schedule No. 35 84,600.00
VAT Schedule No. 44 1,879,206.96 2,087,577.12 2,310,347.17 2,548,771.79 2,661,360.09
A/P Payment Schedule No. 25 251,400.00 259,833.60 270,226.94 281,036.02
RM purchased Schedule No. 25 2,262,600.00 2,338,502.40 2,432,042.50 2,529,324.20 2,630,497.16
Direct Labor Schedule No. 7 827,389.44 877,310.07 930,246.15 986,380.02 1,045,905.06
Manufacturing OH (net) Schedule No. 20 2,241,328.64 2,435,036.35 2,553,381.61 2,677,539.05 2,806,822.84
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Sales & Admin (net)
Personal drawing
Schedule No. 21
Schedule No. 22
5,577,393.07
300,000.00
6,100,075.15
325,000.00
7,168,219.26
350,000.00
7,675,588.03
375,000.00
8,206,737.77
400,000.00
Income Tax Payment 1,852,254.86 2,231,216.03 2,476,761.74 2,933,400.24
Principal Payment Schedule No. 23 1,414,589.04 1,538,716.34 1,673,735.57 1,820,602.45 1,980,356.60
Interest Payment Schedule No. 37 672,079.98 547,952.67 412,933.45 266,066.57 106,312.41
Donations 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00
Total Cash Outflow 8,458,621.00 15,324,587.12 18,553,824.98 20,571,955.33 21,926,260.79 23,402,428.19
NET CASH INFLOW 5,562,383.85 1,261,102.48 1,624,339.14 1,669,622.97 2,521,759.92 2,243,280.44
Add: Cash Beg Balance - 5,562,383.85 6,823,486.33 8,447,825.46 10,117,448.44 12,639,208.36
CASH ENDING BALANCE 5,562,383.85 6,823,486.33 8,447,825.46 10,117,448.44 12,639,208.36 14,882,488.80
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Schedule No. 40 shows the cash flow statement of ManiTela from year 2020 to 2024

Schedule No. 41 Balance Sheet

Schedule No. 41
BALANCE SHEET
Notes Pre-operating 2020 2021 2022 2023 2024
ASSETS
Current Asset
Cash Schedule No. 40 5,562,383.85 6,823,486.33 8,447,825.46 10,117,448.44 12,639,208.36 14,882,488.80
RM Inventory Schedule No. 24 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00
FG Inventory Schedule No. 29 75,119.61 78,424.87 81,875.57 85,478.09 89,239.13
Prepaid Manufacturing Supplies Schedule No. 40
Prepaid Office Supplies Schedule No. 40 17,615.00
Prepaid Safety Gears Schedule No. 40 80,900.00
Prepaid Pre-operating Expenses Schedule No. 40 84,600.00
Accounts Receivable Schedule No. 33 1,842,854.40 2,037,256.63 2,244,924.63 2,467,010.68 2,575,410.88
Total Current Assets 5,745,498.85 8,757,060.34 10,579,106.97 12,459,848.64 15,207,297.13 17,562,738.81

Fixed Assets
Land Schedule No. 40 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00
Facility Schedule No. 40 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Auxiliary Equipment Schedule No. 40 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
Manufacturing Equipment and MaterialsSchedule No. 40 463,716.00 463,716.00 463,716.00 463,716.00 463,716.00 463,716.00
Office Furnitures & Fixtures Schedule No. 40 111,790.00 111,790.00 111,790.00 111,790.00 111,790.00 111,790.00
Subtotal 7,075,506.00 7,075,506.00 7,075,506.00 7,075,506.00 7,075,506.00 7,075,506.00
Less: Depreciation Schedule No. 20 & 21 - 179,774.61 359,549.22 539,323.83 719,098.44 898,873.05
Book Value 7,075,506.00 6,895,731.39 6,715,956.78 6,536,182.17 6,356,407.56 6,176,632.95
Total Fixed Assets 8,275,506.00 8,095,731.39 7,915,956.78 7,736,182.17 7,556,407.56 7,376,632.95

TOTAL ASSETS 14,021,004.85 16,852,791.73 18,495,063.75 20,196,030.81 22,763,704.69 24,939,371.76

LIABILITIES AND EQUITY

Current Liabilities
Accounts Payable Schedule No. 25 251,400.00 259,833.60 270,226.94 281,036.02 292,277.46
Loans Payable 1,414,589.04 1,538,716.34 1,673,735.57 1,820,602.45 1,980,356.60 0
Income Tax Payable - 1,852,254.86 2,231,216.03 2,476,761.74 2,933,400.24 3,041,862.77
Total Current Liabilities 1,414,589.04 3,642,371.21 4,164,785.19 4,567,591.14 5,194,792.86 3,334,140.23

Long-Term Loans Payable

Loans Payable Schedule No. 23 7,013,410.96 5,474,694.62 3,800,959.05 1,980,356.60 (0.00) -
Total Long-term Loans Payable 7,013,410.96 5,474,694.62 3,800,959.05 1,980,356.60 (0.00) -

TOTAL LIABILITIES 8,428,000.00 9,117,065.83 7,965,744.25 6,547,947.74 5,194,792.86 3,334,140.23

Equity
Beginning Equity 5,593,004.85 5,593,004.85 7,735,725.90 10,529,319.51 13,648,083.07 17,568,911.83
Add: Net Income for the Period Schedule No. 39 0 2,442,721.05 3,118,593.61 3,468,763.56 4,295,828.76 4,436,319.70
Less: Withdrawals 0 300,000.00 325,000.00 350,000.00 375,000.00 400,000.00
Ending Equity 5,593,004.85 7,735,725.90 10,529,319.51 13,648,083.07 17,568,911.83 21,605,231.53

TOTAL LIABILITIES AND EQUITY 14,021,004.85 16,852,791.73 18,495,063.75 20,196,030.81 22,763,704.69 24,939,371.76
Balance Indicator - - - - - -

Schedule No. 41 shows the projected balance sheet of ManiTela from year 2020 to 2024

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Schedule No. 42 Input VAT

Schedule 42
INPUT VAT
Notes 2020 2021 2022 2023 2024
RM Purchased Schedule No. 25 1,250,400.00 1,300,416.00 1,352,432.64 1,406,529.95 1,462,791.14
Office Supplies Schedule No. 21 17,615.00 18,390.06 19,199.22 20,043.99 20,925.92
Manufacturing Supplies Schedule No. 20
Fuel Schedule No. 20 103,200.00 107,740.80 112,481.40 117,430.58 122,597.52
Packaging expense Schedule No. 20 5,100.00 5,324.40 5,558.67 5,803.26 6,058.60
Safety Gears and Equipment Schedule No. 20 80,900.00 84,459.60 88,175.82 92,055.56 96,106.00
TOTAL Expenses 1,457,215.00 1,516,330.86 1,577,847.75 1,641,863.32 1,708,479.19
Actual Expenses 1,301,084.82 1,353,866.84 1,408,792.64 1,465,949.40 1,525,427.85
Input VAT 156,130.18 162,464.02 169,055.12 175,913.93 183,051.34

Schedule No. 42 shows the Input VAT from year 2020 to 2024

Schedule No. 43 Output VAT

Schedule 43
OUTPUT VAT
Notes 2020 2021 2022 2023 2024
Sales Schedule No. 31 18,996,480.00 21,000,384.00 23,141,088.00 25,430,400.00 26,547,840.00
Vatable sales 16,961,142.86 18,750,342.86 20,661,685.71 22,705,714.29 23,703,428.57
Output VAT 2,035,337.14 2,250,041.14 2,479,402.29 2,724,685.71 2,844,411.43

Schedule No. 43 shows the Output VAT from year 2020 to 2024

Schedule No. 44 Value Added Tax Due (VAT DUE)

Schedule 44
VALUE ADDED TAV DUE (VAT DUE)
Notes 2020 2021 2022 2023 2024
Output VAT 2,035,337.14 2,250,041.14 2,479,402.29 2,724,685.71 2,844,411.43
Less: Input Vat 156,130.18 162,464.02 169,055.12 175,913.93 183,051.34
VAT Due 1,879,206.96 2,087,577.12 2,310,347.17 2,548,771.79 2,661,360.09

Schedule No. 44 shows the VAT Due from year 2020 to 2024

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Schedule No. 45 Break-Even Analysis

BREAK - EVEN ANALYSIS

Notes 2020 2021 2022 2023 2024
Selling Price Schedule No. 27 3,860.00 4,029.84 4,207.15 4,392.27 4,585.53
Variable Cost
Sales Return Schedule No. 39 189,964.80 210,003.84 231,410.88 254,304.00 265,478.40
Direct Material Schedule No. 25 2,514,000.00 2,598,336.00 2,702,269.44 2,810,360.22 2,922,774.63
Direct Labor Schedule No. 7 1,062,965.60 1,120,365.74 1,180,865.49 1,244,632.23 1,310,868.11
Fuel Schedule No. 20 103,200.00 107,740.80 112,481.40 117,430.58 122,597.52
Water Schedule No. 20 59,657.16 62,282.08 65,022.49 67,883.48 70,870.35
Electricity Schedule No. 20 628,656.38 656,317.26 685,195.22 715,343.81 746,818.93
Safety Gears and Equipment Schedule No. 20 80,900.00 84,459.60 88,175.82 92,055.56 96,106.00
Production Supplies Schedule No. 20
Packaging Schedule No. 20 5,100.00 5,324.40 5,558.67 5,803.26 6,058.60
Finished Goods Ending Inventory Schedule No. 29 75,119.61 78,424.87 81,875.57 85,478.09 89,239.13
Incentives Schedule No. 21 379,929.60 420,007.68 462,821.76 508,608.00 530,956.80
Income tax Schedule No. 39 1,852,254.86 2,231,216.03 2,476,761.74 2,933,400.24 3,041,862.77
VAT Schedule No. 39
Total Variable Cost 6,876,628.40 7,577,783.56 8,095,889.17 8,838,901.97 9,207,392.27
Fixed Cost
Amortized Pre - Operating Expenses Schedule No. 39 84,600.00
Sales Deals Schedule No. 39 377,971.20 417,813.81 460,430.82 505,989.24 528,252.76
Indirect Labor Schedule No. 20 1,062,965.60 1,120,365.74 1,180,865.49 1,244,632.23 1,310,868.11
Insurance Schedule No. 20 325,000.00 339,300.00 354,229.20 369,815.28 386,087.16
Repair and Maintainance Schedule No. 20 56,749.50 59,246.48 61,853.32 64,574.87 67,416.16
Interest Expense Schedule No. 39 672,079.98 547,952.67 412,933.45 266,066.57 106,312.41
Salary of Administrative Personnel Schedule No. 21 4,251,862.40 4,503,366.97 4,769,839.25 5,052,174.29 5,351,320.85
Offi ce Supplies Schedule No. 21 17,615.00 18,390.06 19,199.22 20,043.99 20,925.92
Advertising Expense Schedule No. 21 750,000.00 955,000.00 1,705,000.00 1,875,000.00 2,075,000.00
Utility / Offi ce Electricity Schedule No. 21 175,213.07 182,922.44 190,971.03 199,373.75 208,146.20
Internet Schedule No. 21 20,388.00 20,388.00 20,388.00 20,388.00 20,388.00
Depreciation Schedule No. 20 and 21 179,774.61 179,774.61 179,774.61 179,774.61 179,774.61
Warranty
Total Fixed Cost 7,974,219.36 8,344,520.79 9,355,484.40 9,797,832.83 10,254,492.19
Total Production in Units Schedule No. 28 4,968 5,184 5,472 5,760 5,760
Variable Cost per Unit 1,384.1845 1,461.7638 1,479.5119 1,534.5316 1,598.5056
Break-even (Units) 3,221 3,249 3,430 3,429 3,433
Break-even (Pesos) 12,498,676.02 13,055,453.86 14,389,712.64 15,017,499.17 15,699,399.59

Schedule No. 45 shows the Break-Even Analysis from year 2020 to 2024. The average number of break-
even in units is 3,385 rolls with an amount of Php 14,113,689.14

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I Market Aspect

Table 6.1 Demand of barong textiles in Zamboanga City for the year 2018

Demand of barong textiles (in rolls)

Piña 6,300
Abaca 3,360
Polyester 10,020
Total 19,680
Table 6.1 shows the demand of barong textiles based on the results of survey for the year 2018

Table 6.2 Computations for projected Demand

Projected Demand
Year Increase Demand (Rolls)
2020 15% 26,027
2021 15% 29,931
2022 15% 34,420
2023 15% 39,584
2024 15% 45,521

Table 6.2 shows the projected demand of barong textiles with an annual increase of 15%

Table 6.3 Supply of barong textiles in Zamboanga City for the year 2018

Supply of barong textiles (in rolls)

Piña 8,208
Abaca 4,344
Polyester 13,140
Total 25,692
Table 6.2 shows the supply of barong textiles based on the results of survey for the year 2018

Table 6.4 Computations for projected Supply

Projected Demand
Year Increase Demand (Rolls)
2020 14.035% 33,410
103 | P a g e 2021 14.035% 38,099
2022 14.035% 43,446
2023 14.035% 49,544
2024 14.035% 56,497
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Table 6.4 shows the projected supply of barong textiles with an annual increase of 14.03

II. Technical Aspect

Grinder & Separator

Cleaner

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Moulder

Dryer

Roller

Table 6.4 shows the machineries for Manitela

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Figure 6.1 Inflation rate as of December 2018

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Figure 6.2 Internet Expense

Figure 6.3 Poverty Indices

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