CHAPTER I

EXECUTIVE SUMMARY

Summary of the Project

Name of the Firm Thirst Burst Peso water refilling station

Location ZCSPC Lot 2, R.T Lim Boulevard, Zamboanga City

Brief Description of the Thirst Burst Peso Water Refilling Station is an

Project Automated Machine. it requires minimal human
intervention by inserting a coin into the machine, and
automatically release water. Thirst Burst Peso Water
Refilling Station doesn’t only aim to high profit but to
provide a quality product, affordable and more
convenient for the satisfaction of our future prospective
customers.

Water helps to regulate the body’s temperature and

maintain other bodily functions, through breathing,
sweating, and digestion the body loses water, it is
important to rehydrate by drinking water.

Thirst Burst Peso refilling Station consider using

Purified water as our main Product
Marketing Study The Major benefit of Thirst Burst lies with a variety of
water.

Mineral water
 Can Help Lower Blood Pressure,
 Aid Digestion
 Improve Bone Health
 Good for Skin
Purified water
 Absorbs toxins from the body and eliminate it
 Helps Reduce the Possibility of Painful
Gallstone

We have the benefits of drinking a variety of water as

mentioned above.

Marketing Strategy The Thirst Burst Piso Water Refilling Station will
Product maintain the cleanliness of the station and ensure the
quality of water.

1
 Thirst burst Peso water refilling station will focus in
Promotion/advertising initial marketing campaign on developing strong word
of mouth advertising to create the buzz

The Grand opening will last for a week consist of fliers

and posters.
Management study Thirst Burst will provide you a quality product with using
high technology, our location is easier to find, and you
don't have to endure your thirst, we will assure the
cleanliness of the surrounding. we want our customers
to feel that we are with them taking care of their health.
we want them to appreciate our quality services and
realize the importance of our goal is our valued
customer

Technical study It is the place where customers are guaranteed that the
cleanliness of the establishment is our main concern.
We have high confidence that our surroundings are
free from any undesirable odors, an eco-friendly, a
smoke-free area. These Peso Water Refill needs no
introduction at all because the name of the Peso Water
Refill already introduces itself. Purified is also a popular
and favorite drinking water in the Philippines: in fact,
there were several Peso Water Refill throughout the
Philippines.

Financial study This part of the study illustrates where the proposed
project is lucrative and feasible when put under erratic
economic conditions and competition. It presents a
comparative statement over a five (5) year period. The
partner’s full capital to invest to start the business
based on financial statement computed, showing there
is a big chance that this proposed project will succeed.
The partners will invest each of 50,000 with the total of
250,000

Socio economic study The proposed business also help the government of
Zamboanga City through the payment of the business
license and other requirements needed by the business
to operate.

2
 CHAPTER II

BACKGROUND OF THE STUDY

The first commercial coin-operated vending machines were introduced in

London, England, in the early 1880s. Richard Carlisle, an English publisher and book

shop owner, he invented a vending machine for selling books around the same time. In

1888 the Thomas Adam’s Gum Company introduced the very first vending machine to

the United States. Pulver Manufacturing Company added animated figures to its Gum

machine as an added attraction.

In the Philippines, Mr. Teodoro Bergado, founder and inventor of the automatic

water machine aims to make safe drinking water more affordable to the masses.

Automatic water machine ventures last year, the company reported a total of 260

machines spread all over Visayas, and Mindanao, with its franchise offer. Living in the

era of technologies, people nowadays are looking for more machines or equipment to

better accomplish their tasks. Thus the Automatic water refill becomes reliant for their

source of drinking water.

Automatic water machine is in demand for they make activities not only easier

but also more efficient.

This machine introduces income-generating expenses in particular bills from the

consumption of electric, water, etc. can somehow return the capital cost invested and

eventually produce the outflowing income along the way of its use. Using a Peso Coin

3
inserted into can easily get a drinking cup of cold water. 20 pesos of single gallon

distilled water can produce the 75 cups and it creates a 75 pesos’ sale. The electricity in

a month consumes only 45 watts and creates 2 to 4 pesos a day or 120 pesos per

month.

Motivation

The motivation of the conduct study where students who strive every day to fit

their allowances when it comes to buying water for their meal and to prevent

dehydration and illnesses.

Business Location
The “Thirst Burst” Peso water refilling station is located at Zamboanga City State

Polytechnic College, R.T Lim Boulevard, Zamboanga City. Lot 2, back of Guard house.

The location was chosen because of the following:

 Accessibility

 Security

 Potential for growth

4
Figure 1. Location satellite

Scope and Delimitations of the study

The survey was done personally by distributing the questionnaires where the

business is located, students from ZCSPC, faculties, personnel assumed to be the

future customers of the proposed business. Convenient sampling is used in choosing

the respondents wherein only those customers are available and willing to answer the

questionnaires are entertained by the proponents. Below are the computed population

and the researcher considered as the target market.

The sample market size used in four hundred (400) by using the slovin's formula

with .5% as the margin error. The N or the total population is 8,000 for the 1st semester

of the school year 2019-2020 according to the school registrar.

5
 School Department Total Population

CET 2,000

CTE 1,500

CAHHS 1,000

CME 1,500

CTECHED 1,000

SHS 1,000

8,000

Slovin’s formula;

𝑵
𝐧=
𝟏 + 𝒏(𝒆)𝟐

𝟖𝟎𝟎𝟎
𝐧=
𝟏 + 𝟖𝟎𝟎𝟎(. 𝟎𝟓)𝟐

𝟖𝟎𝟎𝟎
𝐧=
𝟏 + 𝟖𝟎𝟎𝟎(. 𝟎𝟎𝟐𝟓)

𝟖𝟎𝟎𝟎
𝐧=
𝟏 + 𝟐𝟎

𝟖𝟎𝟎𝟎
𝐧=
𝟐𝟏

n = 380.95 or 400

6
Operational definition of terms

PURIFIED WATER- is water that has been mechanically filtered processes to remove

impurities and make suitable for use.

MINERAL WATER- is water from a mineral spring that contains various minerals, such

as salts and sulfur compounds. Mineral water may be classified as "still" or "sparkling"

(carbonated/effervescent) according to the presence or absence of added gases.

AUTOMATIC WATER MACHINE- is an automated water machine enabling manual and

coin-operated. This machine provide 24X7 safe water access to the people at a walk

able distance who otherwise would have to walk/cover far locations in order to fetch

safe and pure water.

DRINKING CUPS- it is for customer who doesn’t have their owned bottled jag.

DRINKING CUP DISPENSER- dispenses a wide range of cup sizes and cup types.

GALLON- use to supply the automated water machine.

7
 CHAPTER III

MARKETING STUDY

The Business gives effects, as another way of satisfying and providing the needs

of customers; the target market is the students, faculties, and staff personnel of

Zamboanga City state polytechnic college. our project is expected to scattered not only

in ZCSPC Campus but might as well in the local place.

Knowing that water is one of the basic needs and to help the students, faculties,

and Zamboanga City State Polytechnic College personnel as well as lessen their

expenses. Thirst burst will provide an affordable price and quality product.

MARKETING OBJECTIVES

Our main Marketing objective is to provide convenience and hassle-free service of

prospective customers. And to gain loyalty that will patronize our product at least 1/3 of

the total population

1. To promote new technology for a new generation in the area of Zamboanga City

State Polytechnic College Campus

2. To meet consumer needs and desires in terms of providing accessibility in

drinking water with high technology.

8
Methodology of the Study

The study was carried out through surveys, interviews, and researches. The

proponents started their surveys from October 10, 2019, to November 10, 2019. The

proponents surveyed department of College of Engineering and Technology, College of

Teachers Education, College of Marine Engineer, College of Technical Education

CHED, College of Arts, Humanities, and Social Science, Senior High School, to know if

they are willing to patronize Thirst Burst Peso Water Refilling Station.

The proponents chose to limit the target business setting who would patronize if

implemented. The respondent answered "No" was considered since the proponents

believe that water is Needs.

Aside from CET as our main location, we also considered CTE, CME, CTE CHED,

CAHHS, SHS as part of our target future location. CET is one of the departments that

has many populations on campus.

Market Demand
Water refill is intended to serve those who like to avail of the affordable peso refill.

Because now a day’s we must take more water, and drinking plenty of water can

prevent illnesses such as obesity, heart disease, diabetes, and other chronic disease.

As we know water is now most popular needed in school.

9
.
Major consumers of the product

As above mentioned, the target market of Thirst Burst Peso water refilling station are

students, faculties, and Personnel of the ZCSPC Campus.

Table 1: Respondents prefer to drink.

Indicator Respondents Percentage
Mineral 248 62%
Purified 107 26.75%
Tap water 27 6.75%
Alkaline 18 4.5%
Total 400 100%

This table shows that there are two hundred forty-eight respondents chose

mineral water, one hundred seven for purified water, twenty-seven for tap water and

eighteen for alkaline. Which shown above that the mineral water has the biggest

amount of percentage.

Table 2: Respondents often feel thirsty in a day.

Indicator Respondents Percentage
Every hour 188 47%
Every minute 145 36.25
3-6 hours 67 16.75%
Total 400 100%

This table shows that there are one hundred eighty-eight respondents feel thirsty

every hour, one hundred forty-five every minute, and sixty-seven for 3 to 6 hours in a

day. Which shown above that the students feel thirsty every hour has the biggest

percentage.

10
Table 3: Respondent consider as the target customer where they usually
purchase their water.
Indicator Respondents Percentage
Owned bottled water jag 216 54%
School canteen 149 37.25%
supermarket 35 8.75%
Total 400 100%

This table shows that there are two hundred sixteen respondents answer that

they have their owned bottled water jag, one hundred forty-nine respondents purchased

their water at the school canteen, thirty-five respondents for supermarket. Which shown

above that the respondents had their owned bottled water jag has the biggest amount of

percentage.

Table 4: Respondent usually spend for a water.

Indicator Respondents Percentage
11-30 317 79.25%
31-60 66 16.5%
61-100 17 4.25%
Total 400 100%

This table show that there are three hundred seventeen respondents usually

spend 11 to 30 peso a day, sixty-six respondents spend 31 to 60 and 61 to 100 has

seventeen respondents. Which shown that students have usually spend eleven to thirty

pesos a day has the biggest amount of percentage.

11
Table 5: Respondents drinks more water to prevent dehydration.
Indicator Respondents Percentage
Yes 390 97.5%
No 10 2.5%
Total 400 100%

This table shows that there are three hundred ninety students who answered that

they should be drinking more to prevent dehydration and ten respondents said ‘No’.

Which shown above that yes has the biggest amount of percentage.

Table 6: Respondent willing to patronize the water Peso Refilling station if

implemented.
Indicator Respondents Percentage
YES 383 95.75%
NO 17 4.25%
Total 400 100%

This table shows that there are three hundred eighty-three respondents will

patronize the peso water refilling station and seventeen respondents will not. Which

shown above that Yes has the biggest amount of percentage. And can be consider as

the target customer.

12
Market Segment

Every time Zamboanga City State Polytechnic College had a special occasion,

snacks never missed, students prepared water, with this, it will be now the basis of the

researcher to determine his/her target market or base on the survey conducted. This

project that we are going to introduce is one of the best examples and one of the best

things to do to those people from the campus will purchase our product.

Table 7: Respondent according to gender

Indicator Respondent Percentage
Female 231 57.75%
Male 169 42.25%
Total 400 100%

This table shows that there are two hundred thirty-one girls respondents and one

hundred sixty-nine boys respondents highest to lowest. Which shows that the female

has the biggest amount of percentage.

Table 8: Respondents according to age.

Indicator Respondent Percentage
15-20 (year old) 263 65.75%
21-30 (year old) 129 32.25%
31-35 (year old) 8 2%
Total 400 100%

This table shows that there are two hundred sixty-three respondents age 15-20,

one hundred twenty-nine age 21-30 and eight age 31-35. Which shown above that

respondents age 15-20 has the biggest amount of percentage.

13
Projected Demand

ZCSPC has 8,000 population of students, this indicates that the demand for the

product will increase, as an investor we should provide and supply the needs of the

people and satisfy them, in which this will serve as an opportunity or future clients to the

researcher.

Table 9: Projected Demand Schedule for Thirst Burst

Total Population Percentage of students
Name of School that will going to
patronize the products

Zamboanga City State 16, 000 95.75%

Polytechnic College (SY 2019-2020)

Total P 15, 320

The table above shows that the projected demand schedule of the customer who

drinks water and it shows that 95.75% willing to patronize the business when

implemented the researcher considers the percentage as the projected demand of the

proposed business.

Projected Supply

Base on the survey conducted we identified and acknowledge several

competitors. Some of:

14
 Table 10: List of Competitor
Name Location Number of capacity of
serve a year
CTE DEPARTMENT School – Direct Competitor 2, 000
WATER STATION

The table above shows that the College of Teachers Education has 2,000

number of capacity serve a year.

Table 11: Demand, Supply and Gab Analysis

Projected Demand Projected Supply Gap Analysis

8,000 2,000 6,000

The table shows above the computed gap based on the survey conducted and

data gathered by the researcher through a personal interview with his direct

competitors.

Projected Market Share

Table 12: Number of competitors (Direct only)

Name Location Number of Market Share
capacity of serve a
year
CTE DEPARTMENT School – Direct 2,000 3.33%
STATION Competitor
Thirst Burst Entrepreneur 4,000 6.67%
Building

The above table shows that the College of Teachers Education Department

serves market share 3.33% and the proposed Thirst Burst Peso Water Refill 6.67%.

15
This indicates that our competitor is not yet congested. Therefore, the possibility is high

that Thirst Burst Peso Water Refilling Station can compete.

SWOT Analysis

The analysis of Thirst Burst Peso Refill Station's business strengths, weaknesses,

opportunities, and threats will help the management come up with the right strategic

marketing plan. Also, this analysis will allow Thirst Burst Peso Refill Station to see the

current opportunities it can strategically plan and focus,

On the other hand, the weaknesses that will be discussed will further improved on the

main strategies of Thirst Burst Peso Refill Station. The opportunities and threats are

based on the analysis of the competitors or the market performance.

Strengths

 Affordable price

 Owners directly manage the business

 efficient

 Convenient to get

 Friendly employees

 Accessible

16
Weakness

 Target station limited only

 Brand preference is low

Opportunities

 Big station for possible future customers

 Improved services

Threats

 Environmental Hazards

 Competitors

 Substitutes

 Thief

Marketing Strategy

The marketing strategy of Thirst Burst Peso Refill Station is focused on increasing

customer’s brand awareness, preference, and loyalty towards Thirst Burst Peso Water

Refilling Station, focused on satisfying current customers and prospected consumers by

giving the best.

Thirst Burst Peso Water Refilling Station's marketing mission is committed to providing

affordable products to its customers, committed to accommodating customers with

17
friendly and good services; continue to maintain cleanliness in its selling area for its

customers’ health and safety.

In promotion of the products, the best ways of these are:

Three tarpaulins of at least 15 square meters will be bought by the management to give

brand awareness to a bigger population of the University.

 Website or Facebook page

 To give Fliers

Grand opening: The opening will last for a week consist of fliers and posters which will

offer free drinks to the first 100 customers on the first day. Free water jag printed with

our business name for the first 10 Customers.

Table 13: Promotional Expenses Table

Particular Quantity Frequency unit price Total Cost

(Grand
opening)
Grand Opening 1 5,000.00

Tarpaulin 3 1 300.00 900.00

Flyers 50 1 10.00 500.00
Total 6,400.00

The table above shows that the total expenses are six thousand four hundred pesos for

the Grand opening with tarpaulins and flyers.

18
 CHAPTER IV

TECHNICAL STUDY

The Thirst Burst Peso Refill Station is a place where customers are guaranteed

that the cleanliness of the establishment is our main concern. We are highly confident

that our surroundings are free from any undesirable odors, an eco- friendly, and relaxing

ambiance.

The Thirst Burst Peso Refill Station also promotes an eco-friendly living

environment and good services we will welcome first the customers. Since our

establishment creates smoke-free that causes air pollution, we are assuring that it will

be an eco-balanced environment because our business doesn’t only care for the

sustainability and profitability but also a healthy environment to the students of

Zamboanga City State Polytechnic College

Product Description / Product offered

Thirst Burst Peso Water Refilling Station is an Automated Machine. it requires

minimal human intervention by inserting a coin into the machine, and automatically

release water. Thirst Burst Peso Water Refilling Station doesn’t only aim to high profit

but to provide a quality product, affordable and more convenient for the satisfaction of

our future prospective customers.

19
Water helps to regulate the body’s temperature and maintain other bodily functions,

through breathing, sweating, and digestion the body loses water, it is important to

rehydrate by drinking water.

Automatic Water Machine

20
Drinking Cup

Tumbler

21
 CHAPTER V

MANAGEMENT STUDY

Types of Business Organization

Thirst Burst Peso Refill is a private partnership form to comply the

professionalism confronting with the clientele and offering them variety with a quality

taste and affordable price that will satisfy the needs and wants of the peoples in

Zamboanga City State Polytechnic College

Easy to form

Partnership was easily form compared to corporation and it is barely an

agreement in between the two or more person and to contribute money, property, or

industry to a common fund. To submit an articles of partnership to Securities and

Exchange Commission as one of the requirements needed to be registered.

Resource

As to the partner’s mutual contribution is emphasize partnership cannot be form

without it. Unlike sole proprietorship the capital is a lot higher with the accordance with

each partner’s capability. Considering among the partners there is so called general

partner who is liability can be extended that can be exploited to increase the capital.

22
Greater Managerial Talent

Since the business is more on Refilling Station type this means that the partners

are enough to make run of the business with the different roles taken. Division of work

at which the partners are specialized in. Since the partners are mostly in Business

Administration then each of them can simply focus in certain aspects of business,

depending to what type of partners they are. one can be manager, book keeper.

Strength of Decision Making

Every partner is an agent of the partnership except that if the one of partners is

appointed then there will be managing partner as one who can make any transaction.

Without the proper authority given other partners cannot make transaction externally

only the managing partner. Decisions are still consulted to every partner’s within.

Sharing Risk

Profit and loss sharing agreement are established in the articles of partnership.

The risk of business is contributed fairly as to the accordance of agreement. The

employees can also suffer as well. Facing the risk should include everyone, in everyone

accountabilities and responsibilities.

23
Flexibility of Operation

The business will secure the government regulations and implementing business

flexibility for the adaptation to the changing market and status quo.

Organizational chart

Owner / Manager

Book keeper Sales Associate

Position and Job Description

In order for every employee in the business to be guided and to know their duties

and responsibilities and to perform effectively and efficiently all the way as what is

expected to them the employee in the company must have specific job description. This

will also serve as guide for the manager in the assessment and evaluation of the

employee’s performance. Below are the job descriptions.

24
Position Job Description

 To supervise and manage the day to day business

Manager operations.

 To ensure that the administrative and operational policies of

the business are carried out under his supervision and

control.

 To make the necessary recommendation and periodic

reports to the partners of the establishment.

 To act and decide on crucial matters thru consultation with

the partners.

 Preparing and processing payroll/s

Book Keeper  Preparing monthly, quarterly, half yearly, and yearly financial

 Calculating taxes, collecting bad debts, paying creditors, and

analyzing financial statements

 Maintaining the financial records

 Processing sales invoice and receipt

Sales  Customer Service.

 Sales.
Associate
 Product Knowledge.
 Merchandising.
 Basic Math.
 Dependability.

25
Position Qualification

In providing effective and efficient service employees must meet specific

qualification for the specified job to determine if the employee is qualified for the

specified job. Competencies and skills will be one of the core qualities they should

possess. Below are the qualifications.

Job Qualification

Manager  Must be a degree holder preferably a Master in Business

Administration.

 Strong personality and good moral character

 Possess good leadership skills, work ethics and

professionalism

 Possess good oral and written communication skills

 Good interpersonal skills

 Must be a graduate of a four-year course

 With pleasing personality and of good moral character.

Book Keeper  Honest and hardworking

 Must be computer literate

 Relevant book keeping experience

Sales
 At least high school graduate
Associate  Retail sales experience.
 Maintain a positive attitude and focus on customer satisfaction in a
fast-paced environment.

26
 Position No. of Monthly Rate Annual Rate
Personnel
Owner/Manager 1 9,480.00 113,760.00
Book keeper 1 8,400.00 100,800.00
Sales Associate 1 8,400.00 100,800.00
Total 26,280.00 315,360.00

Note:

Salaries and/or wages of every employee are based and according to the law

thru Department of Labor and Employment and regional Tripartite Wage Board. The

company will provide the employer’s share in SSS (SOCIAL SECURITY SYSTEM) Phil

Health, and Pag-ibig contributions for the employees share will be deducted from their

monthly salaries.

Policies and Ethics

1. The business will open from Monday to Sunday (8:00AM to 10:00PM).

2. Employees must report to work 30mins before the opening time to prepare and

arrange the place, themselves, the things needed and the store.

3. Employees shall observe proper decorum and must exercise prudence and

courtesy towards co-employees and most especially to the clientele.

4. Employees should maintain honestly, trustworthiness, camaraderie and sincerity

in providing services to the clientele.

5. Employees must have a valid reason for absences without permission

27
 CHAPTER VI

FINANCIAL STUDY
Financial Aspect

This part of the study illustrates where the proposed project is lucrative and

feasible when put under erratic economic conditions and competition. It presents

comparative statement over a five (5) year period.

Notes and Assumptions

1. Mode of Financing

The project requires an investment of for its organization and operation which will

be financed by the proponent.

2. Period Covered

The financial analysis will be spread out over a period of 5 years.

3. Administrative Expenses

a. Salaries of personnel will be increased by 5 % yearly depending on performance

b. SSS/Phil health contribution is 5 % of the salary.

4. Sales are all on cash basis

5. Operation and Overhead Expenses

a. Business supplies expenses will increase by 5 % year in anticipation of the

increase in demand of services.

28
b. Advertising expenses will increase 5 % every year.

c. Pre-operation expenses will be charged as organizational expenses and will be

amortized over a period of 5 years.

d. Utilities Expenses will increase by 5 % every year.

e. Tax will be computed based on graduated rate.

f. Estimated useful life of business equipment, furniture’s and fixtures and machineries

is 5 years.

Source of Financing

The partner’s full capital to invest to start the business based on financial statement

computed, showing there is a big chance that this proposed project will succeed. The

partner’s will invest each of 50,000 with the total of 250,000.

29
 SOLE PROPIETORSHIP
OF
THIRST BURST PESO WATER REFILL

KNOW ALL MEN BY THESE PRESENTS:

That we undergo, all of legal age and residents of Zamboanga City of the Republic of

the Philippines have agreed to form a general partnership under the terms and

conditions herein after said forth to the provisions of existing law of the Republic of the

Philippines.

AND WE HEREBY CERTIFY:

Article 1: That the name of the partnership shall be THIRST BURST PESO WATER
REFILLING STATION

Article 2: That the principal of the office of the partnership shall be located at

Zamboanga City State Polytechnic College Campus

Article3: That the name citizenship and resident of the partnership are as follows:

NAME CITIZENSHIP RESIDENCE

Your name Filipino San Roque, Zamboanga City

Article 4: That the amount term of which they said partnership is to exist as the five (5)

years from and after recording of the said partnership by the security of exchange

commission.

30
Article 5: For the purpose of which said partnership is to forms are as follows:
1. To render a good service to the customers.
2. To satisfy the customers
3. To gain more profits
4. To divide profits and losses among partners equally

Article 6: That the amount of this partnership shall be 40,000 each

Pesos each Philippine currency contributed in cash by the partners as follows:

NAME AMOUNT CONTRIBUTED

Your name 50,000 each…

That no transfer of interest which will reduce the ownership of Filipino citizens to less

than the required percentage of capital shall be allowed to be recorded in the proper

books of the partnership.

Article 7: That the profit and losses shall be divided pro-rata among the partnership.

Article 8: That the firm shall be under the management of the affairs of the partnership.

Article 9: That the partners manifest their willingness to change their partnership name

in the event of another person. Firm or entity has acquired a prior right to use the said

firm name or one deceptively or confusingly similar to it.

IN WITNESS THEREOF, we have here unto our hands this May 2017 at Zamboanga

City, Philippines.

Your name San Roque, Zamboanga

31
 Office Supplies

Particulars No. of Units Unit Price Total Cost

Log Book 1 89.00 89.00
Sign Pen 10 15.00 150.00
Ball pen 10 8.00 80.00
customized plain receipt 3 55.00 165.00
Pencil 10 8.00 80.00
journal 1 33.00 33.00
pencil 10 8.00 80.00
Special Clear Book (long) 3 49.00 147.00
Special Clear Book refill 3 23.00 69.00
(long)
Stapler 1 55.00 55.00
stapler wire 10 10.00 100.00
Subtotal 1,048.00

TOTAL ANNUAL 12,576.00

Utility Expenses

Particulars Frequency Monthly Rate Total Cost

Electricity Per month 5,000.00 60,000.00
Water Per month 500.00 6,000.00
Subtotal 5,500.00 66,000.00

32
Materials, Equipment, Tools and Utensils
Used

Items No. Unit Price Total Cost

of
Items
Automatic Water 2 15,000.00 30,000.00
Machine
Gallons 20 200.00 4,000.00
Drinking cups 100 25.00 2,500.00
Drinking Cup 2 450.00 900.00
Dispenser
37,400.00

List of Required Equipment’s /furniture and fixtures

Items No. of Units Unit Price Total Cost

Automatic water machine 2 15,000.00 30,000.00
gallons 20 200.00 4,000.00

Drinking cup dispenser 2 450.00 900.00

calculator 1 200.00 200.00
35,100.00

Rental for lot space 5,000.00

Organizational cost

Description useful life Amount

Feasibility study 5 years 4,000.00

Miscellaneous 5 years 1,000.00
Subtotal 5,000.00

33
Thirst Burst Advertising

Particular Quantit Frequency unit price Total Cost

y
(Grand
opening)
Grand opening 1 5,000.00
Tarpaulin 3 1 300.00 900.00
flyers 50 1 10.00 500.00
total 6,400.00

Employees’
salaries and
wages

Position No. of Monthly rate Annual rate Total

Personnel

Manager 1 9,480.00 113,760.00 113,760.00

Book keeper 1 8,400.00 100,800.00 100,800.00

Sales associate 1 8,400.00 100,800.00 100,800.00

26,280.00 315,360.00 315,360.00

Ingredients (Good for

1 day)
Item Description Quantity Particulars Unit Price Total
Cost
Mineral water 20 gallons 300.00
15.00
Purified water 20 gallons 400.00
20.00
subtotal 700.00

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 Depreciation Schedule

Materials, Equipment, Tools and Utensils Used

Items Useful Cost Depreciation

Life(yrs.)
Automatic water machine
10 15,000.00 1,500.00
gallon
1 200.00 200.00
drinking cup dispenser
3 450.00 150.00
calculator
1 200.00 200.00
Total 2,050.00
15,850.00

List of Required Equipment’s/furniture and

fixtures

Items Useful Cost Depreciation

Life(yrs.)
Automatic water machine 10 30,000.00
3,000.00
Gallons 1 4,000.00
4,000.00
Drinking cups 3 900.00
300.00
calculator 1 200.00
200.00
Subtotal 35,100.00 7,500.00

List of Electrical Equipment

Items Useful Cost Depreciation

Life(yrs.)

Subtotal 0.00 0.00

Building Improvement #DIV/0!

Total Annual Depreciation 50950.00 9550.00

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Costing per Quantity Particulars Unit Price
Product

Original

purified 1 drinking cup 1.00

mineral 1 drinking cup 1.00

Sub Total 2.00

Costing per Quantity Particulars Unit Price

Service
mineral water 1 drinking cup 1.00
purified water 1 drinking Cup 1.00

Sub Total 2.00

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Schedule of Financial Investment Requirement

Particulars Cost

Organizational Cost
Feasibility Study 5,000.00
Business Registration 10,000.00

Fixed Capital
Office Equipment, Furniture and Fixtures 35,100.00
Thirst Burst Tools and Equipment 37,400.00

Rental 5,000.00

Working Capital
Thirst Burst Supplies 700.00

Office Supplies (1 Month) 1,048.00

Salaries and Wages (1 Month) 26,280.00

Advertising ( Per Month) 6,400.00
Utilities (Per Month) 5,500.00

Grand Total Investment 132,428.00

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 Schedule: Projected Demand for Thirst Burst Water Refilling Station

Projected Order per Month

Price Sold
Product
per a
Offered
Order day
Grand Projected
Jan Feb March April May June July August Sept. Oct. Nov. Dec. Total Sales

Mineral water 1.00 750 2,250 2,475 2,723 2,995 3,294 3,624 3,986 4,385 4,823 5,305 5,836 6,420 48,115
48,114.64

2,250 2,475 2,723 2,995 3,294 3,624 3,986 4,385 4,823 5,305 5,836 6,420 48,115
purified water 1.00 750
48,114.64
1500
PROJECTED
TOTAL
SALES 96,229.28

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 SCHEDULE OPERATING EXPENSES

Accounts Year 1 Year 2 Year 3 Year 4 Year 5

Cost of Sales 385,006.00 467,977.20

404,256.30 424,469.12 445,692.57
Administrative Expenses 318,800.00 334,740.00 351,477.00 369,050.85 387,503.39

Utilities 66,000.00 69,300.00 72,765.00 76,403.25 80,223.41

Advertising 1,400.00 1,470.00 1,543.50 1,620.68 1,701.71

Office Supplies 12,576.00 13,204.80 13,865.04 14,558.29 15,286.21

783,782.00 822,971.10 864,119.66 907,325.64 952,691.92

Total Cash Operating Expenses

Add:
Depreciation 9,550.00 9,550.00 9,550.00 9,550.00 9,550.00
Amortization 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00

Total Depreciation and 10,550.00 10,550.00 10,550.00 10,550.00 10,550.00

Amortization
Total Operating Expenses 794,332.00 833,521.10 874,669.66 917,875.64 963,241.92

39
Table: Income Statement ( Case 3) Decrease Revenue by 10% and Increase Operating Expenses by 10 %

Items Year 1 Year 2 Year 3 Year 4 Year 5

Gross Income 9,622,927.70 10,585,220.46 10,681,449.74 10,691,072.67 10,692,034.96

(Sales)
Less: Operating 873,765.20 916,873.21 962,136.62 1,009,663.20 1,059,566.11
Expenses

Net Income 8,749,162.50 9,668,347.25 9,719,313.12 9,681,409.47 9,632,468.85

Before Tax
Less: Income 2,624,748.75 2,900,504.18 2,915,793.94 2,904,422.84 2,889,740.66
Tax
Net Income 6,124.413.75 6,767,843.08 6,803,519.18 6,776,986.63 6,742,728.20

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Table: Statement of Cash Flow (Case 3)

Items Pre- Year 1 Year 2 Year 3 Year 4 Year 5

Operating

Cash Inflow:
Investment / 127,428..00 - - - -
Equity
Gross Income - 9,622,927.70 10,585,220.46 10,681,449.74 10,691,072.67 10,692,034.96
127,428.00 9,622,927.70 10,585,220.46 10,681,449.74 10,691,072.67 10,692,034.96
Total Cash Inflow

Cash Outflow:
Fix Tools and 37,400.00 - - - - -
Equipment
Office Equipment 35,100.00 - - - - -
Building 5,000.00 - - - - -
Improvement
Organizational 5,000.00
Cost
Operating - 863,215.20 906,323.21 951,586.62 999,113.20 1,049,016.11
Expenses
Income Tax - - 2,624,748.75 2,900,504.18 2,915,793.94 2,904,422.84

Total Cash 82,500.00 863,215.20 3,531,071.96 3,852,090.80 3,914,907.14 3,953,438.95

Outflow

Net Cash Inflow 49,928.00 8,759,712.50 7,054,148.51 6,829,358.94 6,776,165.53 6,738,596.01

Add: Cash - 49,928.00 8,804,640.50 15,858,789.00 22,688,147.95 29,464,313.48
Balance, beginning
Cash Balance 44,928.00 8,804,640.50 15,858,789.00 22,688,147.95 29,464,313.48 36,202,909.49
End

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Table: Balance Sheet (Case 3)

Items Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets :
Cash 8,804,640.50 15,858,789.00 22,688,147.95 29,464,313.48 36,202,909.49

Non-Current Assets
Fix Tools and Equipment 37,400.00 37,400.00 37,400.00 37,400.00 37,400.00
Office Equipment & Furniture’s 35,100.00 35,100.00 35,100.00 35,100.00 35,100.00
Building Improvement 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Total 77,500.00 77,500.00 77,500.00 77,500.00 77,500.00
Less: Accumulated Depreciation 9,550.00 19,100.00 28,650.00 38,200.00 47,750.00
Net Book Value 67,950.00 58,400.00 48,850.00 39,300.00 29,750.00
Organizational Cost 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Less: Amortization 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00
Net Realizable Value 4,000.00 3,000.00 2,000.00 1,000.00 0.00

TOTAL ASSETS 8,876,590.50 15,920,189.00 22,738,997.95 29,504,613.43 36,232,659.49

LIABILITIES and EQUITY
Liabilities:
Income Tax Payable 2,624,748.75 2,900,504.18 2,915,793.94 2,904,422.84 2,889,740.66
Equity:
Sole Proprietorship, Beginning 127,428.00 6,251,841.75 13,019,684.83 19,823,204.01 26,600,190.64
Add: Net Income 6,124,413.75 6,767,843.08 6,803,519.18 6,776,986.63 6,742,728.20

Sole Proprietorship, end 6,251,841.75 13,091,684.83 19,823,204.01 26,600,190.64 33,342,918.83

TOTAL LIABILITIES & EQUITY 8,876,590.50 15,920,189.00 22,738,997.95 29,504,613.48 36,232,659.49

42
Financial Analysis Ratios Case 3
Year 1 Year 2 Year 3 Year 4 Year 5
1. Liquidity Ratios

a. Cash Turn Over

Cash Operating Expenses 783,782.00 822,971.10 864,119.66 907,325.64 952,691.92
÷ Average Cash Balance
22,603,760.08 22,603,760.08 22,603,760.08 22,603,760.08 22,603,760.08
3.47% 3.64% 3.82% 4.01% 4.21%

2. Profitability Ratios
a. Return on the Investment
Operating Income 6,124,413.75 6,767,843.08 6,803,519.18 6,776,986.63 6,742,728.20
÷Average Total Assets
19,329,593.47
8,876,590.50 12,398,389.75 26,121,805.71 32,868,636.48

69% 55% 35% 26% 21%

b. Gross Profit Rate
Gross Profit 9,237,921.70 10,180,964.16 10,256,980.63 10,245,380.10 10,224,057.76
÷Net Sales 9,622,927.70 10,585,220.46 10,681,449.74 10,691,072.67 10,692,034.96

96.00% 96.18% 96.03% 95.83% 95.62%

3. Net Present Value

Annual Cash Flow 8,759,712.50 7,054,148.51 6,829,358.94 6,776,165.53 6,738,596.01

÷ (1 + Prevailing Interest Rate) 5 1.1300 1.2769 1.4429 1.6305 1.8424
Present Value of Cash Inflows 7,751,957.96 5,524,433.01 4,733,088.32 4,155,949.22 3,657,439.94

Total Present Value 25,822,868.45

Less Investment 127,428.00

-
Net Present Value 25,649,440.45

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Table: Summary of Financial and Sensitivity Analysis

Financial & Sensitivity Normal Case 1 Case2 Case 3

Analysis Operation
1. Liquidity Ratios 3.47%

2. Profitability Ratios
69%
Return on the
Investment
Gross Profit Rate

3. Net Present Value 96.00%

The cash turnover of the proposed business indicates that its liquidity

continues to increase thus can provide the required cash for its operation. This also

indicates that the business can be efficient in the use of its cash for generation of

revenues.

The business profitability ratio shows that the investor can recover his

investment in the first two years because of the good return of investment (ROI).

Furthermore, its gross profit is more enough to cover the selling and administrative

expenses of the business. Thus, the continued increase in the profit rate can lead to the

possibility of expensing its operations.

The business net present value indicates that investing in this business will be

more profitable to the investor as compared to the interest that he might earn from

depositing in the bank.

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 CHAPTER VII

SOCIO- ECONOMIC ASPECT

In this part it talks about the business can help to the community and in the

economy. In doing a business it is not only important to gain profit and give customer

value but also to think for the betterment of the society. The proposed business will

employ employees, even there are only few workers the proposed business can employ

we can already help to lessen the unemployment rate of the community.

Nevertheless, the proposed business also helps the government of Zamboanga City

these is through the payment of business license of the business and other necessary

requirements needed by the business to operate. Moreover, the business is also

required to pay taxes to the local government every year.

The amount, above will augment to the city government’s fund for many projects that

will rebound to the benefits of the people of Zamboanga City. The business also

contributes to the progress of their suppliers through buying their raw materials.

It is our way to have a positive social impact by employing the locals who

realistically do not have any other income sources. With the apparent sources of the

business, the expansion is fort-coming hence bigger employment is needed which will

45
mean more hiring of personnel thereby increasing the socio economic condition of the

City of Zamboanga.

The business will be using recycling papers specifically paper bag for all take

outs and will minimize using plastic for the environment and help the government in

promoting eco-friendly establishment. The establishment will make sure that the waste

will be in proper place and will follow the city ordinance such as the proper waste,

cleanliness in the production area, and the biodegradable requirement segregation of

the waste.

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