CBA Locker Units_Chapters

8/14/2019 CBA Locker Units_Chapters

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CHAPTER I

SUMMARY OF THE STUDY

A. NAME OF THE PROPONENT

The proponent of the proposed CBA Locker Units is the College of Business

and Accountancy (CBA) Provincial Board (ProBoard) of Central Philippine University

(CPU).

B. BUSINESS NAME

The name of the business will be the CBA Locker Units.

C. LOCATION OF THE BUSINESS

The locker units will be located along the hallway beside NV 107 (AVR), Central

Philippine University, Lopez-Jaena Street, Jaro, Iloilo City.

D. BRIEF DESCRIPTION OF THE PROJECT

The CBA Locker Units is a college-owned locker unit exclusively for the use of

CBA students. The units will benefit both the students and the college ProBoard. It could

provide convenience to the students while generating additional income for the college.

E. HIGHLIGHTS OF THE MAJOR ASSUMPTIONS

1. Market Feasibility

The locker units will be available solely for the use of the CBA students

especially those with loads of books & other belongings and those who are not residing

near the campus.


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2. Social and Economic Desirability

The proposed project will benefit the students by providing them

expediency and immediate access to their necessary belongings. It would also benefit

the ProBoard Members on their proper bookkeeping and other accounting skills since

they will be involved in a business world someday.

3. Technical Feasibility

The purchased units will be made of steel in order to provide longer

service. The durability of steel could protect the units from external factors such as

termites, fire, theft, etc. Quality units mean safe belongings, thus providing security to the

unit users.

Each unit will be spacious enough to accommodate student belongings

especially those thick books and several handouts. Every unit is designed with a

detachable partition to segregate the users possessions. This partition could also be

used in cases wherein two students are occupying the same unit.

4. Financial Feasibility

The total fund needed to purchase these locker units will approximately

be P 40,000.00 and cost recovery would take place in more or less three academic

years, provided each locker unit is rented and the recommended monthly fee is imposed.

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CHAPTER II

MARKETING ASPECT

A. MARKET DESCRIPTION

A market is any one of a variety of different systems, institutions, procedures,

social relations and infrastructures whereby persons trade, and goods and services are

exchanged, forming part of the economy. In mainstream economics, the concept of a

market is any structure that allows buyers and sellers to exchange any type of goods,

services and information.

In this study, the market refers to the College of Business and Accountancy

(CBA) students of Central Philippine University (CPU) who are not residing near the

campus and find it difficult to carry their belongings for a long time and for those who

want to have immediate access to their possessions.

B. MARKET DEMAND

Demand is the desire to own something and the ability to pay for it. The term

demand signifies the ability or the willingness to buy a particular commodity at a given

point of time.

The Law of Demand states that when the price of a good rises, the amount

demanded falls, and when the price falls, the amount demanded rises. It means that

people will buy more of a service, product, or resource as its price falls.

In this study, demand is the need of the students to have a temporary depository

of their belongings a place where they can leave their stuffs with an assurance that it

will not be lost and that they can get it back as soon as they need it.

Table 1 shows the population of CBA students for the first semester of SY 2009-2010.

This will be the possible number quantity of demand this study would encounter.

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TABLE 1. SUMMARY OF ENROLLMENT (First Semester SY 2009-2010)

FIRST YEAR

MAJOR MALE FEMALE TOTAL

BS Accountancy 76 271 347BS Advertising 8 16 24

BSBA Major in: 111

Business Management 66 45

Financial Management 4 18 22

Marketing Management 10 29 39

BS Entrepreneurial Management 2 5 7

BS Management Accounting 11 31 42

TOTAL 156 436 592

SECOND YEAR


BS Accountancy 34 101 135

BS Advertising 6 8 14

BSBA Major in:

Business Management 43 71 114

Financial Management 14 20 34

Marketing Management 15 22 37

BSC Finance 0 1 1



TOTAL 131 285 416

THIRD YEAR




BSBA Major in:

Business Management 37 72 109

Financial Management 3 14 17Marketing Management 19 20 39



BS Commerce Major in

Management 1 1 2

Management Accounting 0 4 4

Marketing 1 1 2

TOTAL 106 261 367

FOURTH YEAR




BSBA Business Management 21 40 61

BSBA Marketing Management 8 13 21

BS Commerce Major in:

Entrepreneurship 4 2 6

Finance 4 12 16

Management 18 32 50

Management Accounting 7 30 37

Marketing 11 7 18



Total 126 260 386

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GRAND TOTAL 519 1,242 1,761

C. MARKET SUPPLY

Supply is the relationship showing the quantities of goods and services that will

be offered for sale at each price within a specific time period. Supply represents how

much the market can offer. The quantity supplied refers to the amount of a certain good

producers are willing to supply when receiving a certain price.

The Law of Supply states that as the price of a good or service increases, the

quantity of goods or services offered by suppliers increases and vice versa. The supply

relationship shows a direct relationship between prices and quantity supplies. High prices

encourage firms to produce more, while low prices discourage production.

D. MARKET PROGRAM

1. METHOD OF SERVICE

The CBA-ProBoard office will make an announcement on the availability of locker

units to all CBA students during enrollment. It will be a first come, first serve basis. The

standard term will cover a whole semester or summer and renewable for the next term.

2. PRICING

Prices will be set by the CBA-ProBoard officers after considering the cost

incurred for the acquisition and the length of time of using the locker units.

3. TARGET MARKET

The target market will be limited only to CBA students enrolled for the current

semester and summer.

4. MARKETING STRATEGY

Marketing strategy is essentially a pattern or plan that integrates your

organizations major goals, policies, and action sequences in a cohesive whole.

To achieve this studys objectives of providing convenience to students and an

additional income to the University, the following strategies will be done:

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1. Announcements

Announcements will be made during the CBAs college orientation.

Further information dissemination through posting announcements on

the bulletin boards.

Announcement on CPU website, specifically on the College of Business

and Accountancys webpage.

2. Assignment of locker units.

When the students are properly informed and their desire to acquire

locker units has been made certain, they will be assigned to their

respective units according to their choice.

3. Payment collection

The collection manner will be on an installment or cash basis base on the

students preference

If a student opted to pay on a cash basis, he/she will pay the full amount

for the whole semester or summer during enrollment or upon reservation.

If a student opted to pay on an installment basis, he/she will pay the first

two (2) months rent upon reservation then pays the remaining balance

at the end of each month in the ProBoard office.

A grace period of 30 days will be allowed for an occupant who was not

able to pay on time.

A receipt will be provided as a proof of their occupancy for the given

period.

4. Reservation and transition

By the end of each semester or summer, ownership of locker units will be

updated. Current unit users will be given preemptive right to confirm

reservation of their respective unit for the next term. For the graduating

students or those who have no plan to renew their occupancy, their

respective units will be made available for the new occupant.

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E. SWOT ANALYSIS

STRENGTHS

Units are durable, spacious, and secure enough for storage of valuable

things.

Readily accessible to students.

WEAKNESS

Newly introduced to CBA students.

OPPORTUNITIES

No existing competitors.

Specific site is considered flood-free.

Large population of CBA students.

THREAT

Future implementation of building renovation in accordance with the

proposed CPU master plan.

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CHAPTER III

TECHNICAL ASPECT

A. THE LOCKER UNITS

The locker units will be made of steel to provide durability from external factors

like termites, fire, theft, etc. By coating it with paint, it may also endure climate changes.

The strength of each opening will be of assurance to the occupant from future loss.

It will be constructed by a manufacturing company that specializes in metal

works. Constructing a locker unit is significantly economical compared to purchasing

because it could be customized to clients specification. Customized locker units could be

acquired for a larger one with less cost in contrast to a multiple standard-made locker

units.

B. THE OPERATION

The CBA-ProBoard will be responsible in making announcements during the

enrollment and during the college orientation. ProBoard Members will be the one who

would provide the information regarding how to avail the said privilege. The

corresponding technicalities to be followed by the student for their continuous usage of

the units would also be tackled.

Students who are willing to have a reservation will approach the Property

Custodian or any ProBoard Officer for further information. If the student agrees to certain

conditions, he/she will have his/her reservation.

The Property Custodian will keep record of the list identifying the occupants for

each opening, including their contact details. He/she will prepare a Reservation List in

duplicate. One copy will be forwarded to the Treasurer and the other is for filing.

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The students will pay their fees to the Treasurer, who will issue an Official

Receipt (OR), which will be necessary for control purposes. One copy of Official Receipt

will be given to the student and the other will be forwarded to the Bookkeeper. Funds

collected will be accumulated for the whole semester or summer and deposited intact by

the Treasurer in a bank.

The Bookkeeper will, after receipt of the OR, will prepare a Remittance List that

records the names of students who have paid their monthly fees. This Remittance List

will then be forwarded to the Property Custodian. The bookkeeper will then file the Official

Receipt.

The Property Custodian, as soon as it receives the list, will compare it to the

Reservation List to determine those students who have not paid their corresponding fees.

Then, the Property Custodian will prepare a List of Unpaid Reservation, which will then

be posted on the CBA Bulletin Board.

The student should provide his/her own padlock; however at the end of each

semester or summer, they are required to empty their unit. A maximum of two occupants

is available for every unit. If the student desires to renew his/her occupancy, he/she will

just inform the ProBoard office and pay the corresponding fees.

Proper maintenance of the locker units will be done every three (3) years or

whenever necessary under the supervision of the property custodian.

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C. OPERATIONS FLOWCHART

1. RESERVATION

GOVERNOR CUSTODIAN TREASURER

Students

Announcement

Reservation

1

ReservationList

File

2Reservation

List

1

ReservationList

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2. PAYMENT

STUDENT TREASURER BOOKKEEPER CUSTODIAN

1Reservation

List

1OR

2OR

1OR

RemittanceList

2OR

2Reservation

List

File

RemittanceList

List of

UnpaidReservation

Post on Bulle

Board

Bank

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D. PROJECT LAYOUT

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CHAPTER IV

MANAGEMENT ASPECT

A. FORM OF BUSINESS ORGANIZATION

The CBA Locker Units shall be owned by Central Philippine Universitys

College of Business and Accountancy Provincial Board (ProBoard). Its monitoring will be

done by the College of Business and Accountancy ProBoard Members under the

supervision of the college Governor. The collection of fees will be the responsibility of the

treasurer assigned by the ProBoard. The bookkeeper will be responsible for all the record

keeping.

B. ORGANIZATIONAL CHART

College of Business and AccountancyPROVINCIAL BOARD

Governor(Supervisor)

Property CustodianBookkeeper Treasurer

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C. MANPOWER REQUIREMENT

The management of the CBA Locker Units will include the following: the

Governor Supervisor (1), Treasurer (1), Property Custodian (1), and Bookkeeper (1).

An amount of P 500.00 per semester and P 200.00 per summer will be appropriated as

an honorarium (Officers Bonus) for the designated manpower. This will be distributed as

P 100.00 per month (or P 25.00 per officer every month).

D. DUTIES AND RESPONSIBILITIES

1. Governor (Supervisor)

Administers the operation regarding the management of Locker Units.

Announces the availability of Locker Units during College Orientation.

Appoints needed officers for the operation of Locker Units.

Supervises the preparation of reports made by the officers assigned.

Performs other tasks necessary for the appropriate utilization of the Locker Units.

2. Treasurer

Collects the fees paid by the occupant.

Prepares monthly report on collection of monthly installment payments.

Deposits the collections in a bank account maintained by the ProBoard.

Disburses necessary expenses for the maintenance of the Locker Units.

Performs other duties as may be required by the Governor Supervisor in line

with the appropriate use of the Locker Units.

3. Property Custodian

Monitors the occupancy of the Locker Units.

Sees to it that the occupants are promptly paying their installments.

Purchases necessary materials needed for the maintenance of the Locker Units.

Performs other duties needed for the wellbeing of the Units.

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4. Bookkeeper

Keeps record of the collection of fees from the students.

Prepares necessary reports required by the Governor.

Performs other tasks as required by his duty.

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CHAPTER V

FINANCIAL ASPECT

A. TOTAL FINANCIAL INVESTMENT

Cost of Asset: P 39,450.00

B. PROJECT FINANCING

Fund appropriated for the purchase of Locker Units will be fully funded by a

certain percentage of College fees collected by the ProBoard during enrollment.

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C. FIVE-YEAR PROJECTED FINANCIAL STATEMENTS

1. Comparative Income Statement

CBA Locker UnitsProjected Comparative Income Statement

For the Five-Year Ended December 31, 2009 to December 31, 2013(Based on P20 per unit)

Year 1 Year 2 Year 3 Year 4 Year 5(Note 1) (Note 2) (Note 3) (Note 4) (Note 5)

Revenue P 12,240.00 P 12,240.00 P 12,240.00 P 12,240.00 P 12,240.00

Less: Operating ExpensesOfficers Bonus 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00Depreciation Expense 3,705.00 3,705.00 3,705.00 3,705.00 3,705.00Maintenance 400.00

Total Expenses 4,905.00 4,905.00 5,305.00 4,905.00 4,905.00Operating Income P 7,335.00 P 7,335.00 P 6,935.00 P 7,335.00 P 7,335.00

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Revenue P 18,360.00 P 18,360.00 P 18,360.00 P 18,360.00 P 18,360.00Less: Operating Expenses

Officers Bonus 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00Depreciation Expense 3,705.00 3,705.00 3,705.00 3,705.00 3,705.00Maintenance 400.00

Total Expenses 4,905.00 4,905.00 5,305.00 4,905.00 4,905.00Operating Income P13,455.00 P13,455.00 P13,055.00 P13,455.00 P13,455.00

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Revenue P 24,480.00 P 24,480.00 P 24,480.00 P 24,480.00 P 24,480.00Less: Operating Expenses

Officers Bonus 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00Depreciation Expense 3,705.00 3,705.00 3,705.00 3,705.00 3,705.00Maintenance 400.00

Total Expenses 4,905.00 4,905.00 5,305.00 4,905.00 4,905.00Operating Income P19,575.00 P19,575.00 P19,175.00 P19,575.00 P19,575.00

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2. Comparative Balance Sheet

CBA Locker UnitsProjected Comparative Balance Sheet

As of December 31, 2009 to December 31, 2013(Based on P20 per unit)


ASSETS

Cash P 11,040.00 P 22,080.00 P 32,720.00 P 43,760.00 P 54,800.00

Locker Units (net of Depn) 35,745.00 32,040.00 28,335.00 24,630.00 20,925.00Total Assets P 46,785.00 P 54,120.00 P 61,055.00 P 68,390.00 P 75,725.00

EQUITY

CBA ProBoard, Capital P 46,785.00 P 54,120.00 P 61,055.00 P 68,390.00 P 75,725.00

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As of December 31, 2009 to December 31, 2013

(Based on P30 per unit)


ASSETS

Cash P 17,160.00 P 34,320.00 P 51,080.00 P 68,240.00 P 85,400.00Locker Units (net of Depn) 35,745.00 32,040.00 28,335.00 24,630.00 20,925.00Total Assets P 52,905.00 P 66,360.00 P 79,415.00 P 92,870.00 P106,325.00

EQUITY


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ASSETS

Cash P 23,280.00 P 46,560.00 P 69,440.00 P 92,720.00 P116,000.00Locker Units (net of Depn) 35,745.00 32,040.00 28,335.00 24,630.00 20,925.00Total Assets P 59,025.00 P 78,600.00 P 97,775.00 P 117,350.00 P136,925.00

EQUITY


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3. Comparative Capital Statement

CBA Locker UnitsProjected Comparative Capital Statement



CBA ProBoard,Capital beg. P 39,450.00 P 46,785.00 P 54,120.00 P 61,055.00 P 68,390.00Add: Net Income 7,335.00 7,335.00 6,935.00 7,335.00 7,335.00CBA, ProBoard Capital, end P46, 785.00 P 54,120.00 P 61,055.00 68,390.00 75,725.00

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CBA ProBoard,Capital beg. P 39,450.00 P 52,905.00 P 66,360.00 P 79,415.00 P 92,870.00Add: Net Income 13,455.00 13,455.00 13,055.00 13,455.00 13,455.00CBA, ProBoard Capital, end P 52,905.00 P 66,360.00 P 79,415.00 P 92,870.00 P 106,325.00





CBA ProBoard,Capital beg. P 39,450.00 P 59,025.00 P 78,600.00 P 97,775.00 P 117,350.00Add: Net Income 19,575.00 19,575.00 19,175.00 19,575.00 19,575.00CBA, ProBoard Capital, end P 59,025.00 P 78,600.00 P 97,775.00 P 117,350.00 P 136,925.00

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4. Cash Budget

CBA Locker UnitsProjected Cash Budget


Year 11st Semester 2nd Semester Summer

Cash, beginning P 0.00 P 4,900.00 P 9,800.00Add: Collections 5,400.00 5,400.00 1,440.00

Total P 5,400.00 P10,300.00 P11,240.00Less: Disbursements 500.00 500.00 200.00

Cash, end P 4,900.00 P 9,800.00 P11,040.00

Year 2

1st Semester 2nd Semester Summer

Cash, beginning P11,040.00 P15,940.00 P20,840.00Add: Collections 5,400.00 5,400.00 1,440.00

Total P16,440.00 P21,340.00 P22,280.00Less: Disbursements 500.00 500.00 200.00

Cash, end P15,940.00 P20,840.00 P22,080.00

Year 3

1st

Semester 2nd

Semester Summer



Cash, end P26,980.00 P31,480.00 P32,720.00

Year 4

1

st

Semester 2

nd

Semester Summer



Cash, end P37,620.00 P42,520.00 P43,760.00

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Year 5




Cash, end P48,660.00 P53,560.00 P54,800.00



Year 1


Cash, beginning P 0.00 P 7,600.00 P15,200.00Add: Collections 8,100.00 8,100.00 2,160.00

Total P 8,100.00 P15,700.00 P17,360.00Less: Disbursements 500.00 500.00 200.00

Cash, end P 7,600.00 P15,200.00 P17,160.00

Year 2




Cash, end P24,760.00 P32,360.00 P34,320.00

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Year 3


Cash, beginning P34,320.00 P41,920.00 P 49,120.00Add: Collections 8,100.00 8,100.00 2,160.00


Cash, end P41,920.00 P49,120.00 P51,080.00

Year 4




Cash, end P58,680.00 P66,280.00 P68,240.00

Year 5




Cash, end P75,840.00 P83,440.00 P85,400.00

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Year 1


Cash, beginning P 0.00 P10,300.00 P20,600.00Add: Collections 10,800.00 10,800.00 2,880.00


Cash, end P10,300.00 P20,600.00 P23,280.00




Cash, end P33,580.00 P43,880.00 P46,560.00




Cash, end P56,860.00 P66,760.00 P69,440.00

Year 4

1

st

Semester 2

nd

Semester Summer



Cash, end P79,740.00 P90,040.00 P92,720.00

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Cash, beginning P 92,720.00 P103,020.00 P113,320.00Add: Collections 10,800.00 10,800.00 2,880.00


Cash, end P103,020.00 P113,320.00 P116,000.00

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NOTES TO FINANCIAL STATEMENTS

1. Projected Income Statement

CBA Locker UnitsProjected Income Statement


Note 1: Year 1

1st Semester 2nd Semester Summer Total

Revenue P 5,400.00 P 5,400.00 P 1,440.00 P 12,240.00Less: Operating Expenses

Officers Bonus 500.00 500.00 200.00 1,200.00

Depreciation Expense 1,543.75 1,543.75 617.50 3,705.00Maintenance 0 0 0 0

Operating Income P 3,356.25 P 3,356.25 P 622.50 P 7,335.00

Note 2: Year 2



Officers Bonus 500.00 500.00 200.00 1,200.00Depreciation Expense 1,543.75 1,543.75 617.50 3,705.00Maintenance 0 0 0 0


Note 3: Year 3


Revenue P 5,400.00 P 5,400.00 P 1,440.00 P 12,240.00

Less: Operating ExpensesOfficers Bonus 500.00 500.00 200.00 1,200.00Depreciation Expense 1,543.75 1,543.75 617.50 3,705.00Maintenance 0 400.00 0 400.00


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Note 4: Year 4





Note 5: Year 5





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Note 6: Year 11st Semester 2nd Semester Summer Total



Operating Income P 6,056.25 P 6,056.25 P1,342.50 P 13,455.00

Note 7: Year 21st Semester 2nd Semester Summer Total




Note 8: Year 3

1st

Semester 2nd

Semester Summer Total


Officers Bonus 500.00 500.00 200.00 1,200.00Depreciation Expense 1,543.75 1,543.75 617.50 3,705.00Maintenance 0 400.00 0 400.00


Note 9: Year 4

1

st

Semester 2

nd

Semester Summer Total




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Note 10: Year 5







Note 11: Year 1


Revenue P10,800.00 P10,800.00 P 2,880.00 P 24,480.00Less: Operating Expenses



Note 12: Year 2





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Note 13: Year 3



Officers Bonus 500.00 500.00 200.00 1,200.00Depreciation Expense 1,543.75 1,543.75 617.50 3,705.00Maintenance 0 400.00 0 400.00


Note 14: Year 4





Note 15: Year 5



Officers Bonus 500.00 500.00 200.00 1,200.00Depreciation Expense 1,543.75 1,543.75 617.50 3,705.00

Maintenance 0 0 0 0Operating Income P 8,756.25 P 8,756.25 P2,062.50 P 19,575.00

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Note 16:

CBA Locker UnitsProjected Balance Sheet



ASSETS

Cash P 4,900.00 P 9,800.00 P12,240.00Locker Units P39,450.00 P39,450.00 P39,450.00Less: Accum. Deprn 1,543.75 37,906.25 3,087.50 36,362.50 3,705.00 35,745.00TOTAL ASSETS P42,806.25 P46,162.50 P46,785.00

EQUITY

CBA ProBoard, Capital P42,806.25 P46,162.50 P46,785.00

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Note 17:



Year 2


ASSETS

Cash P15,940.00 P20,840.00 P22,080.00Locker Units P39,450.00 P39,450.00 P39,450.00Less: Accum. Deprn 5,248.75 34,201.25 6,792.50 32,657.50 7,410.00 32,040.00TOTAL ASSETS P50,141.25 P53,497.50 P54,120.00

EQUITY


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Note 18:



Year 3


ASSETS


EQUITY


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Note 19:




ASSETS


EQUITY


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Note 20:




ASSETS


EQUITY


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Note 21:




ASSETS

Cash P 7,600.00 P 15,200.00 P17,160.00Locker Units P39,450.00 P39,450.00 P39,450.00Less: Accum. Deprn 15,432.75 37,906.25 3087.50 36,362.50 3,705.00 35,745.00TOTAL ASSETS P45,506.25 P51,562.50 P52,905.00

EQUITY


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Note 22:

CBA Locker Units

Projected Balance SheetAs of December 31, 2009 to December 31, 2013



ASSETS

Cash P24,760.00 P 32,360.00 P34,320.00Locker Units P39,450.00 P39,450.00 P39,450.00Less: Accum. Deprn 5,248.75 34,201.25 6,792.50 32,657.50 7,410.00 32,040.00TOTAL ASSETS P58,961.25 P 65,017.50 P66,360.00

EQUITY


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Note 24:




ASSETS

Cash P58,680.00 P 66,280.00 P68,240.00

Locker Units P39,450.00 P39,450.00 P39,450.00Less: Accum. Deprn 12,658.75 26,791.25 14,202.50 25,247.50 14,820.00 24,630.00TOTAL ASSETS P 85,471.25 P 91,527.50 P92,870.00

EQUITY


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Note 25:




ASSETS

Cash P78,840.00 P 83,440.00 P85,400.00

Locker Units P39,450.00 P39,450.00 P39,450.00Less: Accum. Deprn 16,363,75 23,086.25 17,907.50 21,542.50 18,525.00 20,925.00TOTAL ASSETS P 98,926.25 P 114,982.50 P106,325.00

EQUITY

CBA ProBoard, Capital P 98,926.25 P114,982.50 P106,325.00

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Note 26:




ASSETS

Cash P10,300.00 P 20,600.00 P23,280.00


EQUITY

CBA ProBoard, Capital P48,206.25 P 56,962.50 P60,225.00

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Note 27:




ASSETS

Cash P33,580.00 P 43,880.00 P46,560.00


EQUITY


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Note 28:




ASSETS

Cash P56,860.00 P 66,760.00 P69,440.00

Locker Units P39,450.00 P39,450.00 P39,450.00Less: Accum. Deprn 8,953.75 30,496.25 10,497.50 28,952.50 11,115.00 28,335.00TOTAL ASSETS P87,356.25 P 95,712.50 P97,775.00

EQUITY


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Note 29:




ASSETS

Cash P 79,740.00 P 90,040.00 P92,720.00

Locker Units P39,450.00 P39,450.00 P39,450.00Less: Accum. Deprn 12,658.75 26,791.25 14,202.50 25,247.50 14,820.00 24,630.00TOTAL ASSETS P106,531.25 P 115,287.50 P117,350.00

EQUITY


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SUPPORTING COMPUTATIONS:

Revenue:

P 20.00 1st Semester 60x90%xP20x5mos. = P 5,400

2nd Semester 60x90%xP20x5mos. = P 5,400

Summer 60x60%xP20x2mos. = P 1,440







Depreciation: Cost Est. Recoverable Amount = P39,450 2400 = P 3,705Estimated Useful Life 10 yrs.

1st

Semester = P 3,705 x 5/12 = P 1,543.75

2nd Semester = P 3,705 x 5/12 = P 1,543.75

Summer = P 3,705 x 2/12 = P 617.50

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D. PROFITABILITY RATIO

Based on P 20.00 monthly fees

1st Year 2nd Year3rd Year 4th Year 5th Year

Return on Revenue = Net Income = P 7,335 P 7,335 P 6,935 P 7,335 P 7,335Revenue 12,240 12,240 12,240 12,240 12,240

= 59.93% 59.93% 56.66% 59.93% 59.93%

Return on Capital = Net Income = P 7,335 P 7,335 P 6,935 P 7,335 P 7,335Capital 46,785 54,120 61,055 68,390 75,725

= 15.68% 13.55% 11.36% 10.73% 9.69%

Leverage Ratio = Capital P 46,785 P 54,120 P 61,055 P 68,390 P 75,725(Capital to Asset) Total Asset 46,785 54,120 61,055 68,390 75,725

= 1.0 1.0 1.0 1.0 1.0

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= 73.28% 73.28% 71.11% 73.28% 73.28%


= 25.43% 20.28% 16.44% 14.49% 12.65%


= 1.0 1.0 1.0 1.0 1.0

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= 79.96% 79.96% 78.33% 79.96% 79.96%


= 33.16% 24.90% 19.61% 16.68% 14.30%


= 1.0 1.0 1.0 1.0 1.0

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PAYBACK PERIOD

( P 20.00 )

Year Projected Cash PV of Cash Return Accum. Total of Remaining Unrecovered Payback Year Annual Return @ 12% Cash Balances Capital

0 - - - P 39,450.00 -

1 P 11,040.00 P 9,857.00 P 9,875.00 29,593.00 1.00

2 22,080.00 17,602.00 27,459.00 21.34 1.00

3 32,720.00 23,289.00 50,748.00 - .09

4 43,760.00 27,810.00 78,558.00 - -

5 54,800.00 31,095.00 109,653.00 - -

2.09yrs

Net Present Value:

Cash Return P 109,653.00Less: Initial Outlay 39,450.00

P 70,203.00

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PAYBACK PERIOD

( P 30.00 )


0 - - - P 39,450.00 -

1 P 17,160.00 P15,321.00 P15,321.00 24,129.00 1.00

2 34,320.00 27,360.00 42,681.00 - .88

3 51,080.00 36,358.00 79,039.00 - -

4 68,240.00 43,368.00 122,407.00 - -

5 85,400.00 48,458.00 170,865.00 - -

1.88yrs

Net Present Value:


P 131,415.00

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PAYBACK PERIOD

( P 40.00 )


0 - - - P 39,450.00 -

1 P 23,280.00 P20,786.00 P20,786.00 18,664.00 1.00

2 45,560.00 37,117.00 57,903.00 - .50

3 69,440.00 49,426.00 107,329.00 - -

4 92,720.00 58,925.00 166,254.00 - -

5 116,000.00 65,822.00 232,076.00 - -

1.50yrs

Net Present Value:


P 192,626.00

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Return on Investment =

(P20.00)

Year

1 P 7,335.00/ P 39,450.00 = .19

2 P 7,335.00/ P 39,450.00 = .19

3 P 6,935.00/ P 39,450.00 = .18

4 P 7,335.00/ P 39,450.00 = .19

5 P 7,335.00/ P 39,450.00 = .19

(P30.00)

Year

1 P 13,455.00/ P 39,450.00 = .34

2 P 13,455.00/ P 39,450.00 = .34

3 P 13,055.00/ P 39,450.00 = .33

4 P 13,455.00/ P 39,450.00 = .34

5 P 13,455.00/ P 39,450.00 = .34

(P40.00)

Year

1 P 19,575.00/ P 39,450.00 = .50

2 P 19,575.00/ P 39,450.00 = .50

3 P 19,175.00/ P 39,450.00 = .49

4 P 19,575.00/ P 39,450.00 = .50

5 P 19,575.00/ P 39,450.00 = .50

Investment

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CHAPTER VI

LEGITIMACY AND TAXATION ASPECT

A. LEGITIMACY ASPECT

This includes certain requirements such as acknowledgement from the CBA

Provincial Board (ProBoard), and approval from the CBA Deans Office.

Acknowledgement from Provincial Board

This is necessary because the Provincial Board will be the one who will

provide necessary funds in putting up the CBA Locker Units. Also, acceptance of

responsibilities by the ProBoard officers, being the Manager/Supervisor, is needed to

assure an excellent service for the maintenance of the units and proper

administration of it.

Approval from the CBA Deans Office

An approval from the Office of the Dean will serve as proof of legitimacy

of putting up the CBA Locker Units. This will indicate commencement of operation

of the CBA Locker Units.

B. TAXATION ASPECT

The proposed CBA Locker Units is a college-owned locker unit exclusively for

the use of CBA students.

According to paragraph 3, Section 4, Article XIV of the Constitution, the

exemption of non-stock, non-profit educational institution refer to internal revenue

taxes imposed by the National Government on all revenues and asset used actually,

directly, and exclusively for educational purposes.

Pursuant to Section 109 (m) of the Tax Code of 1997, private educational

institution shall be exempt from value-added tax provided they are accredited as such

either by the Department of Education, Culture and Sports or by Commission on

Higher Education.

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CHAPTER VII

SOCIO-ECONOMIC ASPECT

A. CBA COMMUNITY

1. Students

The College of Business and Accountancy students are the primary

subject of the proposed CBA Locker Units. The locker units could serve as a depository

for their non-urgent things during class hours while providing assurance that these things

are safely kept.

2. Provincial Board

As the main body that will be in-charge of the administration of CBA

Locker Units, the officers will be trained to manage an income-generating project. Also,

fees generated will be added to their total funds, which could be used for other ProBoard

projects for the betterment of the college and its students.

3. Supplier/Contractor

The prospective manufacturer or supplier of the proposed CBA Locker

Units will be benefited by this project. It would also mean a benefit for the workers and

other people directly or indirectly working for the finishing of the locker units.

B. SURROUNDINGS

The CBA Locker Units will be made of steel thus providing enough sturdiness to

prevent untoward accident from students and other people. The locker units will only

occupy enough space along the hallway and will not cause a jam-packed area.

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CHAPTER VIII

CONCLUSION AND RECOMMENDATION

A. CONCLUSION

After considering the various aspect of the proposed project, the result showed a

profitable and useful service for the CBA ProBoard and students, respectively. Being

accepted by majority of the College, the researchers, therefore, conclude that the setting-

up of CBA Locker Units is feasible.

B. RECOMMENDATION

Based on the presented results and projections, the proposed CBA Locker

Units proved to be profitable. However, it is believed that the assumptions herein will

provide to be realistic and attainable with all its proper implementation. Hence, the

researchers recommend that the CBA ProBoard Officers assigned in managing the CBA

Locker Units should be accountable enough and strive for a better service.

It is reasonably recommended that the management would prefer a P 30.00 per

month service fee for the use of locker units since it showed both benefits in capital

recovery (approximately 3 years) and price desirability.

The students acceptance and expression of need for the locker attest that this

project is not in vain. The survival, however, of the locker units depends on the proper

treatment of them. Therefore, the researchers also recommend that the students must be

instructed by the Officers on proper use of their respective units. It is further

recommended that appropriate maintenance should be performed when deemed

necessary.

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CHAPTER IX

SENSITIVITY ANALYSIS

The proposal of the CBA Locker Units considers many factors and a few were

determined that could affect the operations of the said project.

1. Acceptability

Acceptability refers to the degree of acceptance of the students of CBA.

2. Poor Management and Operation

Poor and Management and Operation refers to the inability of the

management to control or supervise the business transactions that has

occurred. It could create loss rather than gain.

The maintenance of the locker units is the responsibility of the

management. Failure to do so will make the units depreciate faster.

3. Decreasing the Number of Enrollees

The decease in the number of enrollees will result to the decrease in the

demand and therefore will simultaneously decrease the income generated from

the use of the locker units.

4. Fortuitous Event

Fortuitous event is an unforeseen event (also termed as an act of GOD)

happening by chance, by accident or by uncertainty that cannot be resisted or

prevented. The management should provide a contingency fund allotted in

anticipating this phenomenon.

Documents

CBA Locker Units_Chapters