Cake - Jerico

HINATUAN SOUTHERN COLLEGE
Business Administration Program

Hinatuan Surigao del Sur
HEAVEN’S DELIGHT
A Proposed Feasibility Study Presented to

The Faculty of the Business Administration Program
Hinatuan Southern College
Hinatuan, Surigao del Sur
In Partial Fulfillment of the Requirements for the

Degree of Bachelor of Science in Business Administration
Major in Financial Management
By
JERICO B. PLANGANAN B.
MONTERO, JOHNDY P.
CAÑAL, MICHELLE
FEBRA, NICKA N.
LIMBANGANON, MAYETH C.
November, 2021
APPROVAL SHEET
This Feasibility Study is entitled Heaven’s Delight prepared
and submitted by in partial fulfillment of the
requirements for the degree, Bachelor of Science in Business
Administration Major in Financial Management, has been
examined and recommended for Oral Examination.
_____________________
Adviser
Approved in partial fulfillment of the requirements for the

degree, Bachelor of Science in Business Administration Major
in Financial Management, by the Oral Examination Committee
on Date of Oral Defense with a grade of Passed.
MS. MARIA LOURDES T. ESCALERA

Chairperson
MR. VANRIEL G. CABO, LPT MRS. JELLY C. DALMAN

Member Member
MR. KENT JOY A. FRANCISCO, LPT

Member
Accepted in partial fulfilment of the requirements for the

degree of Bachelor of Science and Business Administration
Major in Financial Management.
ENGR. JUANITO A. BALBUTIN, Ed. D, Ph. D

College President
2
ABSTRACT
Keywords:
3
ACKNOWLEDGEMENT
We would like to thank and express our sincerest and
heartfelt gratitude for those who showed support and
dedication in the accomplishment of this feasibility study.
First, to our adviser , we are so lucky and
grateful that you are always there to give your untiring
guidance so that we can improve our study. Once again, thank
you for your generous time and effort.
Second, to our proponents themselves who have given a
lot of efforts and consumed so much time to make the
completion of Feasibility Study be possible and successful
with the given time.
Lastly, to our friends, acquaintances, parents who have
patience and sincerely support our financial needs, and the
teachers who have made valuable encouragement and support to
finish this challenge, we are very grateful and forever
indebted.
Above all, thank you to our almighty God for bestowing
us strength at all times. We are always grateful for the
constant providence and protection in the whole conduct of
this research study.
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DEDICATION
This study is wholeheartedly dedicated to our beloved
parents, who have been our source of inspiration and gave us
strength when we thought of giving up, who continually
provide their moral, spiritual, emotional, and financial
support.
To our brothers, sisters, relatives, mentor, friends,
classmates, and anybody who shared their words of advice and
encouragement to finish this study.
And lastly, we dedicated this dissertation work to the
Almighty God, thank you for the guidance, strength, power of
mind, protection and skills and for for giving us a healthy
life. All of these, we offer You.
-The Researchers
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TABLE OF CONTENTS
TITLE PAGE…………………………………………………………………………………………………………………………….
APPROVAL SHEET……………………………………………………………………………………………………………………
ABSTRACT……………………………………………………………………………………………………………………………………
ACKNOWLEDGEMENT…………………………………………………………………………………………………………………
DEDICATION………………………………………………………………………………………………………………………………
TABLE OF CONTENTS……………………………………………………………………………………………………………
LIST OF TABLES…………………………………………………………………………………………………………………
LIST OF FIGURES………………………………………………………………………………………………………………
CHAPTER 1 BACKGROUND OF THE STUDY………………………………………………….………
1.1 Introduction………………………..………………………………………………………
1.2 Business Name……………….………………………………………………………………
1.3 Scope and Limitation.……………………………………………………………
CHAPTER 2 MARKET FEASIBILITY……………………….………………………………………………

2.1 Target Market and Completion…………………………………………
2.2 Market Size and Geographic Area…………………………..…
2.3 Market Share…………..……………………………………………………………………
2.4 Competition……………………..……………………………………………………………
2.5 Marketing Strategy……………………………………………………………………
2.6 Promotion…………………………………..……………………………………………………
2.7 Distribution Strategy……………………………………………………………
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CHAPTER I
BACKGROUND OF THE STUDY
Introduction
Cake is a baked batter consisting of flour, sugar,
salt, baking materials, shortening, milk, eggs, and
flavorings. Cake is a high-protein, high-carbohydrate, high-
fat, high-calcium, and high-phosphorus food. Vitamin A,
vitamin B1, and vitamin C are also included in cake. Cake is
a delicious baked product produced from a dough or thick
batter that commonly includes flour, sugar, eggs, and a
rising agent like baking powder. Cakes as a part of bakery
product have different characteristic compared to another
bakery product. Based on the definition, cake is included in
baked confectionery products, it means that cake is a sweet
food product which contains more sugar and made from four
main ingredients, those are flour, sugar, eggs and butter.
Cakes have wide classification, since it can be seen from
various viewpoints such as based on batter cake and the way
of cooking. Based on batter, cakes are classified into three
types. They are pound cake, sponge cake and chiffon cake.
Based on way of cooking, they
are baked and steamed cakes. (Subagjo,2007).
7
In Indonesia, cakes are classified as "kue basah"
(moist cake) or "kue cookies" (cookies) based on their water
content. Moist cake has a soft texture and is perishable due
to the composition or elements of moist cake, which are
easily stale, such as flour, sugar, coconut milk or water,
egg, and salt. Cookies are usually textured bit harder, and
more durable in comparison with the moist cake. Moreover,
the way of cooking is also different, Moist cake usually
cooked by steaming and baking while Pastries cookies by
baking (Syarbini,2014).
A study of Caramonte (2012) was conducted in the four
municipality in the Eastern part of Laguna during summer of
2016. It aimed to seek an optimistic opportunity on creating
a unique cake product that could meet interest of the people
who are looking for a new variety of taste for cakes made of
fruit. Supply for cakes are only limited in the eastern part
of Laguna. There are four cake producers that has a maximum
capacity production of 21, 796 cakes per year. It also shows
that cake manufacturers only produce cake without cream
filling. Innovation of cake products is widespread and it is
necessary to improved its taste for human consumption and
satisfaction.
8
Filipino enjoy eating cakes during festivities, cake is
considered a part of life. Family gatherings aren't always
complete without cake to make them particularly special.
Innovations help to develop and improve cake products. Cake
flavors and fillings have evolved as the demand for cakes
has grown. The food preferences and taste of the people are
also changing it is why it is timely to innovate the
products for its human consumptions. The food preferences
and taste of the Hinatuanons are also changing it is why it
is timely to innovate and to propose a product for its human
consumptions (Subagjo, 2017) .
Business Name
The proposed business will be named “Heaven’s Delight”
the makers of heavenly delightful cakes for all occasion. It
also offers customized mini cake for your small sweet
cravings. We will be located at Purok La Casa, Hinatuan,
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Surigao del Sur. The business will make sure to meet the
customers’ satisfaction and a hundred percent pastry quality
will be served to them.
Scope and Limitation
This study aims to establish a pastry shop in Hinatuan.
This will be based on marketing, technical management,
financial and socio-economic aspect of the proposed
business. This study is intended to cover only the
Municipality of Hinatuan. It is not possible to propose a
business on whole of the business market of Hinatuan and
thus the findings of the study depend upon the availability
of data with reference to time and accessibility.
CHAPTER II
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MARKET FEASIBILITY
Target Market and Competition
The primary target of the proposed pastry shop will be
the customers’ who has a big or small celebration and café
within the locality of Hinatuan. Café include Pan de Pane,
Jashy’s Bread and Pastries, Avisha Bistro and KTV and Karl
en Jay. Since the business will be having its own physical
and online shop, it easy for them to set their orders and
deliver.
Though there are already pastry shops here around in
Municipality of Hinatuan, the business shall ensure the
product with its eye-catching and delicious taste. For us to
be able to maintain the momentum and regular customers will
keep on setting their orders as many as they can and
consider its demographic and geographic location.
Market Size and Geographic Location
The site for the pastry shop are properly wise
selected. All the technical parameters and accessibility are
considered. Pastry shop plan to include the business plan
and the bakery industry aspect. Food and taste management
11
considerations are also prepared and approved. All the
government including the business permit are complied.
Pastry shop area and design are based on the type of
operation or trend to adopt. Size, colors and shaped are
also considered.
Thus, the estimated market size of the proposed
business is at large population due to the fact that food is
essential to all consumers and it includes pastries
consumption.
CAFÉ / CUSTOMERS RESPONDENTS
Target Market 100
TOTAL 100
Table 1. Total Number of Respondents
Market Share
Based on the survey conducted, 42% from Pan de Pane, 8%
Jashy’s Bread and Pastries and 20% from Avisha Bistro and
KTV, 14% from Carl en Jay and 16% from other pastry shops of
the total number of respondents do consume cakes and are
willing to do business with HEAVEN’S DELIGHT.
12
MARKET SHARE VS. COMPETITOR

2%
Pan de Pane 16 %
Jashy's Bread and Pas-
tries 42 %
14%
Avisha Bistro and KTV
98%
Carl En' Jay 20%
8%
Others
Willing Not Willing
Figure 1. Market Share VS. Competitor Share
Competition
Since the pastry shop has already known in the
municipal even small businesses are still operating its own
pastry shop. Exceptional customer service and commitment:
The owners of Heaven’s Delight Pastry Shop pride themselves
to being on location everyday and getting to know the
majority of their clientele. Employees love interacting with
the clients and listening to what the client really
envisions for their custom made cake. It is extremely
rewarding to put that idea into reality and deliver what the
client envisioned.
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Marketing Strategy
Marketing strategies for pastry shop may be easier
because the product is already known to the consumers. We
can now use the social media as one of the marketing
strategies since this is one of the ways to gain more
customers by making them attracted by our picture shots and
selling strategy. We will encourage those senior citizens to
present their identification card and for those who are
fully vaccinated they may present their vaccination card for
them to avail our 10% discount from the total price. Thus,
the proponents still ensure building a good relationship to
target retailers and consumers.
Promotion
One of the oldest methods for pastry shop to promote
their goods and services is to provide discounts.
Discounting can be done in a variety of ways, depending on
your business goals. We could run a weekly deal where
consumers may buy one baked treat and get one free, or we
could give elderly, college students, parents, service
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employees, or children a percentage discount on particular
days. In this time of pandemic, we will use the social media
such as facebook and instagram to promote our shop with our
yummy and sweet cakes for our beloved customers.
Distribution Strategy
Most cafés now sell coffee and packaged pastries but
many of the baked goods could use an upgrade. That’s where
our bakery comes in. Partnering with local café stores is a
mutually beneficial relationship. We can get more exposure
and shelf space, while they get a portion of the revenue and
a new source of food traffic. We will also deliver their
order/s with minimal fee depending on its location and they
may pick-up or visit directly the shop to buy our products
from our shop.
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CHAPTER III
TECHNICAL FEASIBILITY
Business Space and Location
The business location is at Prk. 2 Barangay Aquino,
Hinatuan, Surigao del Sur located beside at Public Market.
The proposed business is convenient and accessible for the
target market and costumers.
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Commercial Space for Rent
The space will undergo renovation, rehabilitation of
the space and construction of the building, light and water
works, equipment or other furniture and fixture just to
maximize the space intended for the business. This is to be
done to encourage employees’ interaction and provide them
with a brand-new slate to work on their creativity, and will
eventually provide your business with new ideas to gain
costumers. The area has (21 sqm.), a 2 months deposit and
advance total of P9,000.00 and cost of P4,500.00 pesos on a
monthly basis onward provided by a lease contract for
minimum of 1 year and renewable.
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Operating Procedure
Cake is a baked sweet food made from flour, sugar, and
other ingredients. Cakes originated as bread modifications,
but they today encompass a wide range of simple to intricate
preparations that share characteristics with other sweets
such as pastries, meringues, custards, and pies. After we’ve
decided what type of bakery we want to open and what sort of
products we want to make, HEAVEN’S DELIGHT pastry shop
offers at the same time cashless and deliveries for a less
hassle transactions and also to produce high quality cakes
for our beloved customers. Each baking process has its
strengths and the employees will look upon these before
going on the process.
Receiving Order Design
 Receiving order  The baker will ask

confirmation from the for a chosen design
Client from the customer.
 Note the time of  The baker will start
order received to create the cake to
 Settle for a mode of its chosen design.
payment.
Distribution Tagging
 The employee/s will now  The employee will count
distribute the order/s to the order/s from the
their customers. customer/s.
 Then take a picture of
the finished product then
send it to the customer
for a confirmation.
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Operational Equipment and Supplies
EQUIPMENTS:
FUNCTION: They use to create

a cake and meringue.
PRICE:P345.00
EXPIRATION: 3-5 years
CAKE DECORATING SUPPLIES
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FUNCTION: use to squeezed by

hand to pipe semi-solid
foods by pressing them through
a narrow opening at one end
often fitted with a shaped
nozzle, for many purposes.
PRICE: P72.00
DISPOSABLE PIPING BAG
20
FUNCTION: used by placing an

undecorated cake onto its
rotating surface.
PRICE: P99.00
CAKE TURNTABLE
FUNCTION: used for making

small cakes and other
pastries and are an excellent
way to make several uniform
desserts at one time.
PRICE: P175.00
CAKE MOLDER
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FUNCTION: Use to bake a cake

and other pastries
PRICE:P35,000.00
GAS RANGE WITH OVEN
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FUNCTION: It is primarily used

as cooking fuel.
PRICE: P1,000.00
GAS TANK
FUNCTION: help automate the
repetitive tasks of stirring,
whisking or beating.
PRICE: P2,000.00
CAKE MIXER
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FUNCTION: to measure the

volume of liquid or bulk
solid cooking ingredients
such as flour and sugar.
PRICE: P129.00
MEASURING CUPS
FUNCTION: Use to mix all the

ingredients.
PRICE:P20.00
WHISK
FUNCTION: Used to sift dry
ingredients.
PRICE: P50.00
LIFE SPAN:3 YEARS
SIFTER
FUNCTION: use to display the
cake/s.
PRICE: P12,000.00
GLASS STAND
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FUNCTION: use to weigh some

equipment or supplies for cake.
PRICE: P729.00
WEIGHING SCALE
FUNCTION: Used to display
cakes.
PRICE: P19,300.00
LIFE SPAN: 10-15 years
CHILLER/COOLER
FUNCTION: use to pack the

cake/s ordered by the customers
PRICE: P280.00 for 10 pcs.
EXPIRATION:
BOX FOR PACKAGING

FUNCTION: Used as delivery
service.
PRICE: P155,000.00
LIFE SPAN:15 years
DELIVERY FOR SERVICE
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FUNCTION: Serve as an
organizer and counter table
for cashier/manager.
PRICE: P3,000.00
LIFE SPAN: 5 years
WOODEN TABLE
FUNCTION: Used as seating for

making use of table.
PRICE: P1,000.00
LIFE SPAN:5 years
WOODEN CHAIR
FUNCTION: Used to store

supplies.
PRICE: P21,998.00
LIFE SPAN:10 years
REFRIGERATOR
SUPPLIES:
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FUNCTION: used in
thickening gravies and
sauces.
PRICE: P95.00
ALL PURPOSE FLOUR
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FUNCTION: to sweetened the

cake.
PRICE: P59.00
EXPIRATION:1-2 years
WHITE SUGAR
FUNCTION: allows baked

goods to rise and become
light and fluffy.
PRICE:P140.00
BAKING SODA
BAKING POWDER FUNCTION: used to increase

the volume and lighten the
texture.
PRICE: P140.00
FUNCTION: imparts a full

rich chocolate flavor and
dark color.
PRICE: P175.00
COCOA POWDER
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FUNCTION: to add flavor to

a cake.
PRICE: P98.00
FUNCTION: used alongside

baking soda as a leavening
agent.
PRICE:P100.00
VINEGAR
FUNCTION: help thicken and

emulsify sauces and custards.
PRICE: P195.00
EGGS
FUNCTION: use it as a
substitute for cream to
help reduce fat content.
PRICE: P25.00 per can
NESCAFE STICKMILK
EVAPORATED
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FUNCTION: use is for making a

whipped topping for cakes.
PRICE: P320.00
WHIP CREAM
FUNCTION: Used to support

cakes to improve presentation
and make transportation
easier.
DIMENSION: 10 inches diameter
PRICE: P18.00
CAKE BOARD
FUNCTION: modifies flavor and
increases crust colour.
PRICE:P50.00
SALT
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FUNCTION: used flavor in foods

and baked goods.
PRICE: P130.00
VANILLA SYRUP
FUNCTION: offers a consistent
color tone without changing
the flavor or texture of the
cake.
PRICE: P189.00 per set
FOOD COLORING
Cost of Production
HEAVEN’S DELIGHT
Service Costing Customize Cake
Displayed Design Cake
Direct Materials P115.75

Direct Labor 43.75
Overhead 63
TOTAL P222.50
Mark-up (50%) 127.50
Service Price P350.00
Technical Assumption
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There will 4 employees or staffs assigned in our shop,
1 will be at the kitchen as baker, 1 for checking or
entertaining the order/s, 1 for delivery and 1 for the
manager/cashier. We assume to create more than 5 designs of
cake in a week since we consider the situation and demand of
the product. But we can assure that the quality of service
and product will still remain in the eyes of our customers.
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CHAPTER IV
MANAGEMENT FEASIBILITY
Introduction
This chapter provides information about the management
aspect of the business. Basically, it shows the form of
ownership which the business has. This includes how the
business manage, the control and supervision matter and even
the start-up cost of the business. It will also provide you
with information about the basic requirements and procedures
in registering the business and the government agencies that
the business is related to.
The management aspect will determine the successful
realization of the business. That’s why the study of the
officers, key personnel and manpower requirements will be
very important matter in this chapter. Business culture
33
which includes the operating schedule and the day to day
monitoring will also be part of this chapter.
Form of Ownership
The form of ownership will be partnership and each of
the 5(five) members will contribute the same amount for the
proposed business. The laws on Partnership profit and loss
distribution, article 1799 of New Civil Code provides that
any stipulation that excludes one or more partners from any
share in the profits or losses is void. The reason for this
is that partnership must exist for the common benefit and
interest of the partners. The legal requirements are
involved in which simply registering a business name and
obtaining any relevant licenses or permits from the
authority that relate to the specific type of business.
I. Registration
Essentially, a partnership business legally comes
into existence when the business owner registers the
business name and obtains any relevant business licenses.
Government Agencies for Registration
34
 Local Government Units where your business is

located:
a) Barangay Clearance
b) Mayor’s Permit or Business Permit
 Bureau of Internal Revenue
 Legally Required Registration of Employee

Benefit
Employers are legally required to provide certain
benefits for the employees. Employee benefits play an
important role in lives of employees as well as their
families. For that reason, the benefits you offer can be a
deciding factor for a potential employee’s decision to work
at your business.
Employee’s Registration to the following:
a) SSS (Social Security System
b) Phil. Health
c) Pag-ibig / HDMF
II. Registering Partnership Business at SEC
 Secure Business Name with the Securities and Exchange
Commission (ESC)
 Open Corporate Bank Account
 Register with the Securities and Exchange Commission
(SEC).
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 Name Reservation and Payment Form
 Notarized Articles of Incorporation and by-Laws
 Treasure’s Affidavit
 Bank Certificate of Deposit or Proof of Inward
Remittance
 Daily Accomplish Sec. Form F-100
 Register with the Bureau of Internal Revenue (BIR)
 Register a TIN
 Register with the Social Security System (SSS)
 Employer Registration Form (R-1)
 Employment Report Form (R-1A)
 SEC Registration, Articles of Incorporation, and By-
laws
 Register with Phil. Health
 Employer Data Record (ER1)
 Report of Employee-Members (ER2)
 SEC Registration, Articles of Incorporation, and By-
laws.
 Register with Pag-ibig
 Obtain a Mayor’s or Business Permit
 SEC Registration, Article of Incorporation, and By-laws
36
 Locational Clearance
 Lease Contract
 Barangay Clearance
 Go to the nearest Barangay or where the Business belong
 Notarized lease Contract
 Locational Clearance
 Locational Map
 Barangay Clearance
 Lease Contract
 SEC Registration Documents
 Occupancy Permit (Building/Unit)
 Business Permit Applicant Form
BUSINESS PERMIT AND LICENSES AMOUNT OF REGISTRATION
ESWM/Environmental 100.00
Certificate
Sanitary Permit 100.00
Health Clearance Certificate 100.00
Registration with Barangay 100.00
Mayor’s Permit 325.00
Garbage Fee 1,500.00
Sanitary Inspection Fee 100.00
Registration with SEC 1,220.00
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Registration in BIR 500.00
TOTAL 4,045.00
Table 3: Business Permit and Licenses
Business Culture
I. Operating hours from 8:00 to 5:00pm – Mondays to
Sundays.
Break time: 12:00 NN to 1:00 pm
II. Day to day monitoring
The manager/cashier will monitor the employees’
attitude and performance.
 Monitoring of sales services
 Inventory
Manpower requirements
I. Physical Requirements:
 Age must 18-30 years old
 Workers bending, crouching or walking
restriction
II. Skills, Interest and Qualities
 At least high school graduate.
38
 Knowledgeable in kitchen chores especially in
baking.
 Has ability to work methodically and follow
instructions.
 Willingness to work flexibility under pressure.
 Willingness to do repetitive work and do
overtime.
Organizational Structure
Manager/Cashier
Staff/Delivery Man Baker
Figure 4: Organizational Chart
Job Description and Duties
I. Manager/Cashier
 Responsible for the whole operation of the
business, analyzing and recording the transaction
and presenting the report on time.
II. Staff
39
 Record and settle all the order/s before the
delivery.
III. Baker
 Assigned at the kitchen in which he/she is
responsible for baking and other kitchen chores.
IV. Delivery Man
 Reviewing orders before and after delivery to
ensure that orders are complete, the charges are
correct, and the customer is satisfied. Assisting
with loading and unloading items from vehicles.
40
CHAPTER V
FINANCIAL FEASIBILITY
This chapter discusses the financial aspects of the
study, in order for the proposed business to understand that
it needs money to start.
Assumption and Market Consideration
1. The business has acquired capital of P 1,000,000 and
the partners has equal investment of P 200,000.
2. Assumed Heaven’s Delight budgeted sales for the first
year are 3,600 units and increased to 5% in every year.
3. Assume that all productions are sold out every year.
4. The purchased of supplies are paid in cash. And assumed
that all supplies used in production.
41
5. At Heaven’s Delight, unit of product requires
0.666666666 hours (40 minutes) of direct labor.
6. Assume that the business has no layoff policy, direct
labor is paid at the rate of P 62.50 per hour
regardless of the hours worked. Direct labor will be
paid every year of 2880 hours.
7. Assume all expenses and taxes will be paid every year.
8. Income tax is computed at 30%
9. The Equipment are to be depreciated in straight line
basis.
10. Market share increased annually by 4%.
42
Financial Statement Projection

PROJECTED FIVE-YEAR COMPARATIVE/INCOME STATEMENT
43
Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets:
Cash and Cash ₱ ₱ ₱
Equivalents 1,068,452.70 1,376,769.60 1,721,693.91 ₱ 2,105,056.00 ₱ 2,528,777.76
Total current ₱ ₱ ₱
assets 1,068,452.70 1,376,769.60 1,721,693.91 ₱ 2,105,056.00 ₱ 2,528,777.76
Noncurrent
assets:
₱
Equipments ₱ 205,000.00 ₱ 205,000.00 205,000.00 ₱ 205,000.00 ₱ 205,000.00
Accumulated
Depreciation ₱ 13,661.00 ₱ 27,322.00 ₱ 40,983.00 ₱ 54,644.00 ₱ 68,305.00
Total
noncurrent
assets ₱ 191,339.00 ₱ 177,678.00 ₱ 164,017.00 ₱150,356.00 ₱ 136,695.00
₱ ₱
Total Assets ₱ 1,259,791.70 1,554,447.60 1,885,710.91 ₱ 2,255,412.00 ₱ 2,665,472.76
PROJECTED FIVE-YEAR COMPARATIVE SHEET
Current liabilities:
₱ ₱ ₱ -
Account payable - - ₱ - ₱ -
Total current ₱ ₱ ₱ -
liabilities - - ₱ - ₱ -
Noncurrent ₱ -
liabilities:
₱ ₱ ₱ -
Loan payable - - ₱ - ₱ -
₱ ₱ ₱ -
Total liabilities
- - ₱ - ₱ -
A, Capital ₱ 251,958.34 ₱ 310,889.52 ₱ 377,142.18 ₱ 451,082.40 ₱ 533,094.55
B, Capital ₱ 251,958.34 ₱ 310,889.52 ₱ 377,142.18 ₱ 451,082.40 ₱ 533,094.55
C, Capital ₱ 251,958.34 ₱ 310,889.52 ₱ 377,142.18 ₱ 451,082.40 ₱ 533,094.55
D, Capital ₱ 251,958.34 ₱ 310,889.52 ₱ 377,142.18 ₱ 451,082.40 ₱ 533,094.55
E, Capital ₱ 251,958.34 ₱ 310,889.52 ₱ 377,142.18 ₱ 451,082.40 ₱ 533,094.55
Total owner's
equity ₱1,259,791.70 ₱1,554,447.60 ₱ 1,885,710.91 ₱2,255,412.00 ₱2,665,472.76
Total liabilities and ₱1,259,791.7
owner’s equity 0 LIABILITIES ₱1,554,447.60 ₱ 1,885,710.91
AND PARTNER’S EQUITY₱2,255,412.00 ₱2,665,472.76
PROJECTED FIVE-YEAR STATEMENT OF CASH FLOWS
44
HEAVEN’S DELIGHT
PROJECTED STATEMENT OF CHANGES IN PARTNER’S EQUITY
Year 1
A. Capital B. Capital C. Capital D. Capital E. Capital
45
Beginning Capital ₱ - ₱ - ₱ - ₱ - ₱ -
Add: Investment ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00
Net Income by
partner's ₱ 51,958.34 ₱ 51,958.34 ₱ 51,958.34 ₱ 51,958.34 ₱ 51,958.34
Less: Withdrawals ₱ - ₱ - ₱ - ₱ - ₱ -
Ending Capital
Balance ₱251,958.34 ₱251,958.34 ₱251,958.34 ₱251,958.34 ₱251,958.34
Year 2
Beginning Capital ₱251,958.34 ₱251,958.34 ₱251,958.34 ₱251,958.34 ₱251,958.34
Add: Investment ₱ - ₱ - ₱ - ₱ - ₱ -
Net Income by
partner's ₱ 58,931.18 ₱ 58,931.18 ₱ 58,931.18 ₱ 58,931.18 ₱ 58,931.18
Ending Capital
Balance ₱310,889.52 ₱310,889.52 ₱310,889.52 ₱310,889.52 ₱310,889.52
Year 3
Add: Investment ₱ - ₱ - ₱ - ₱ - ₱ -
Net Income by
partner's ₱ 66,252.66 ₱ 66,252.66 ₱ 66,252.66 ₱ 66,252.66 ₱ 66,252.66
Ending Capital
Balance ₱377,142.18 ₱377,142.18 ₱377,142.18 ₱377,142.18 ₱377,142.18
Year 4
Add: Investment ₱ - ₱ - ₱ - ₱ - ₱ -
Net Income by
partner's ₱ 73,940.22 ₱ 73,940.22 ₱ 73,940.22 ₱ 73,940.22 ₱ 73,940.22
Ending Capital
Balance ₱451,082.40 ₱451,082.40 ₱451,082.40 ₱451,082.40 ₱451,082.40
Year 5
Add: Investment ₱ - ₱ - ₱ - ₱ - ₱ -
Net Income by ₱ 82,012.15 ₱ 82,012.15 ₱ 82,012.15 ₱ 82,012.15 ₱ 82,012.15
46
partner's
Ending Capital
Balance ₱533,094.55 ₱533,094.55 ₱533,094.55 ₱533,094.55 ₱533,094.55
Financial Statement Analysis

FINANCIAL STATEMENT ANALYSIS
Return on Sales
Net Income ₱ 259,791.70 ₱ 294,655.90 ₱ ₱ 369,701.09 ₱ 410,060.76
47
331,263.31
₱1,260,000.0
Divided by: Net Sales 0 ₱1,323,000.00 ₱1,389,150.00 ₱ 1,458,607.50 ₱ 1,531,537.88
Net Profit
Percentage 21% 22% 24% 25% 27%
Return on Investment
Net Income ₱ 259,791.70 ₱ 294,655.90 ₱ 331,263.31 ₱ 369,701.09 ₱ 410,060.76
Divided by: Average ₱1,259,791.7
Total Assets 0 ₱1,407,119.65 ₱1,720,079.26 ₱ 2,070,561.46 ₱ 2,460,442.38
Return on
Investment
Percentage 21% 21% 19% 18% 17%
Working Capital to Total Assets

₱1,068,452.7
Current Assets 0 ₱1,376,769.60 ₱1,721,693.91 ₱ 2,105,056.00 ₱ 2,528,777.76
Divided by: Total ₱1,259,791.7
Assets 0 ₱1,554,447.60 ₱1,885,710.91 ₱ 2,255,412.00 ₱ 2,665,472.76
85% 89% 91% 93% 95%
Breakeven Sales
Fixed Cost 165641 165641 165641 165641 165641
Divided by:
Contribution Margin
% 52% 53% 54% 55% 56%
Breakeven Sales ₱ 320,852.26 ₱ 312,934.08 ₱ 305,747.96 ₱ 299,204.30 ₱ 293,227.46
Return on Partner's Equity

Net Income ₱ 259,791.70 ₱ 294,655.90 ₱ 331,263.31 ₱ 369,701.09 ₱ 410,060.76
Divided by: Average ₱1,259,791.7
Partner's Equity 0 ₱1,407,119.65 ₱1,720,079.26 ₱ 2,070,561.46 ₱ 2,460,442.38
Return on Partner's
Equity 21% 21% 19% 18% 17%
48
PAYBACK PERIOD
HEAVEN'S DELIGHT PAYBACK PERIOD
Year Net Operating Cash Flows Cumulative Cash Flows
1
₱ 273,452.70 ₱ 273,452.70
2
₱ 308,316.90 ₱ 581,769.60
3
₱ 344,924.31 ₱ 653,241.21
4
₱ 383,362.09 ₱ 728,286.40
5
₱ 423,721.76 ₱ 807,083.85
₱ 1,000,000.00
Computation:
₱ 271,713.60
0.33666093 4.039931157
Payback Period 4 years and 4 months
49
Financial Statement Interpretation
Return on Investments (ROI)
The ROI Percentage of 21% both first and second year of
business operation shows efficiency in generation of income.
The decrease of ROI on the third year which is 19% due to
variable expenses of the business and still on the later
years, ROI decreases.
Return on Sales
The Return on Sales of the business is efficient in
generating profit from the company’s revenue which comes up
21% on its first year of the operation 22%, 24%, 25% and 27%
on the second, third, fourth and fifth year of business
operation respectively.
Cash Flow Ratio
Cash flow ratio results 1% in the first year and
increasing every year. The business is liquid which that the
business can generate more cash over its current
liabilities.
50
Current Ratio
The business has the ability to pay its liabilities.
Year ____ has _____ times of current assets over its current
liabilities and increasing results every year.
Working Capital to Total Assets
The business has the capacity to cover its current
liabilities as computed. Current assets are ______ of the
total assets on the first year of operation and are
increasing on the later years.
Break-even Sales
51
The Heaven’s Delight has break-even sales in the 1st
year of _____________ and in the 2nd year of ___________.
It helps to determine the
52

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HINATUAN SOUTHERN COLLEGE

Business Administration Program

A Proposed Feasibility Study Presented to

In Partial Fulfillment of the Requirements for the

Approved in partial fulfillment of the requirements for the

MS. MARIA LOURDES T. ESCALERA

MR. VANRIEL G. CABO, LPT MRS. JELLY C. DALMAN

MR. KENT JOY A. FRANCISCO, LPT

Accepted in partial fulfilment of the requirements for the

ENGR. JUANITO A. BALBUTIN, Ed. D, Ph. D

We would like to thank and express our sincerest and

heartfelt gratitude for those who showed support and

dedication in the accomplishment of this feasibility study.

First, to our adviser , we are so lucky and

grateful that you are always there to give your untiring

guidance so that we can improve our study. Once again, thank

you for your generous time and effort.

Second, to our proponents themselves who have given a

lot of efforts and consumed so much time to make the

completion of Feasibility Study be possible and successful

with the given time.

Lastly, to our friends, acquaintances, parents who have

patience and sincerely support our financial needs, and the

teachers who have made valuable encouragement and support to

finish this challenge, we are very grateful and forever

Above all, thank you to our almighty God for bestowing

us strength at all times. We are always grateful for the

constant providence and protection in the whole conduct of

this research study.

This study is wholeheartedly dedicated to our beloved

parents, who have been our source of inspiration and gave us

strength when we thought of giving up, who continually

provide their moral, spiritual, emotional, and financial

To our brothers, sisters, relatives, mentor, friends,

classmates, and anybody who shared their words of advice and

encouragement to finish this study.

And lastly, we dedicated this dissertation work to the

Almighty God, thank you for the guidance, strength, power of

mind, protection and skills and for for giving us a healthy

life. All of these, we offer You.

CHAPTER 2 MARKET FEASIBILITY……………………….………………………………………………

BACKGROUND OF THE STUDY

Cake is a baked batter consisting of flour, sugar,

salt, baking materials, shortening, milk, eggs, and

flavorings. Cake is a high-protein, high-carbohydrate, high-

fat, high-calcium, and high-phosphorus food. Vitamin A,

vitamin B1, and vitamin C are also included in cake. Cake is

a delicious baked product produced from a dough or thick

batter that commonly includes flour, sugar, eggs, and a

rising agent like baking powder. Cakes as a part of bakery

product have different characteristic compared to another

bakery product. Based on the definition, cake is included in

baked confectionery products, it means that cake is a sweet

main ingredients, those are flour, sugar, eggs and butter.

Cakes have wide classification, since it can be seen from

various viewpoints such as based on batter cake and the way

of cooking. Based on batter, cakes are classified into three

Based on way of cooking, they

are baked and steamed cakes. (Subagjo,2007).