Far Eastern University
Institute of Accounts, Business and Finance
Business Administration Department
GOECO CORPORATION
A Production Research Paper
Presented to
the Faculty of Business Administration Department
Institute of Accounts, Business and Finance
Far Eastern University – Manila
In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Business Administration
By
JENER VINCE M, CARREON
DOMONIC CASTILLO
MARIELLE LEIRA C. FERNANDO
CHLOIE MARIE LEIGH L. RODRIGUEZ
06 November 2019
Far Eastern University
Institute of Accounts, Business and Finance
Business Administration Department
I.
Introduction
a. Historical Background of the Industry
There are numerous types of cleaning products in the market today, whether it came from an
International brand or it is being locally-produced, nonetheless, there are many factors to
consider when bringing a new cleaning product in the market especially that the consumers of
this generation are much more meticulous and practical. Although cleaning products are known
for their wonders when it comes to stripping off germs and dirt in certain objects, it can also be
harmful in many ways. For instance, there are cleaning products that are harmful to the
environment and at the same time, are harmful to one’s health. These certain factors are what the
company wishes to resolve, bearing the vision that a cleaning product must not only bring
goodness to objects it is made to clean for, but also to the environment and to the health of the
user or consumer itself.
To ensure that maximum product output is met, the company wants to bring an efficient and
effective cleaning product that will not compromise the environment, the human health, and
other objects it is not intently made for.
b. Products and Service Offer
GoEco Organic Wax
PRODUCT
An eco-friendly cleaning agent that
ensures safety for the user. It is made out
of fruit husk, natural oil and beeswax,
which are all natural.
The banana husk (fruit husk) will bring
extra shine while the lemon husk will be
the main component for removing stains.
Online selling
B2C
The natural oil used is an additional
factor to bring a good fragrance from the
product and from anything it touches.
SERVICES
The organic wax will be sold via online
shops to reach a wider market since most
online shops of today are already wellestablished and popular to the market.
Aside from online selling, the company
will directly sell the products to
consumers from its main office, and will
also accept orders through the company’s
website.
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Institute of Accounts, Business and Finance
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Since GoEco will sell products directly to
consumers, there will be a delivery to
online orders. The shipping fee will be
based on the customer’s location. The
nearer the location to the main office, the
cheaper the delivery fee.
As the same concept as coffee shops,
frequent costumers will be given a sticker
card, and for every 3 purchase of the
product they will get a free organic wax.
Delivery
Loyalty reward for regular purchase
The sticker card is a way to monitor the
purchase of the costumer, it can be a onetime purchasing 3 organic wax or not, as
long as they were able to collect the
stickers from each purchase then they can
claim their free product.
c. Quality Management Tools
Check sheet
GoEco Corp. will use a check sheet for a quick, easy, and efficient recording system. It’s a way
to monitor the operation of the business depending on the categories provided below. The points
will be gathered from customers and employees, to see the perspective of both parties for certain
cases.
Defect
types/Event
occurrence
Flawed
customer
service
Fast delivery
service
First
week
Second
week
Third
Week
Fourth week
Total
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Institute of Accounts, Business and Finance
Business Administration Department
d.
Unavailability
ofe.the product
f.
g.
h.
General
i.
customer
j.
complaints
k.
Complaints
l.
product
m.
accuracy
n.
Complaints
on
o.
customer
p.
service
q.
Complaints
on
r.
website
s.
handling
t.
Complaints
on
u.
product output
v.
SWOT ANALYSIS
GoEco Corp. will use SWOT analysis to identify the company’s strengths,
opportunities, threats, and weaknesses. This is a way to avoid flaws in the future, as
this study will help on whether the company will prosper in the market or will flop.
Strengths
Easy to use
Weaknesses
Convenient
Low brand awareness
Low-cost
production
Public trust
Price Perception
Unique local
product
Opportunities
Advocates for ecofriendly products and
zero percent waste
International
recorgnition
Lack of direct
competition
Threats
Innovative-related
products
Might be copied by a
well-known company
Competitors might
lower their price
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Institute of Accounts, Business and Finance
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Strengths
GoEco Organic Wax products are easy for the consumer to use. It is produced by the
company to make the lives of the consumer convenient. GoEco Organic Wax
products are made from fruit peelings which are conveniently found in the country,
which lowers the cost of the good. It is also a locally made product, which is made
from indigenous materials that are abundant in the Philippines.
Weaknesses
GoEco Organic Wax products cannot easily be introduced in the market since there
are already strong global competitors. Consumers are not easily persuaded to trust
and use a new product for cleaning.
Opportunities
In the Philippines, this kind of product will promote eco-friendly materials which are
abundant within the country because the product advocates zero waste.
Threats
There are already existing related products in the market. Sales and other promotional
competition may be difficult. The product can easily be copied.
d. Location of the Business and its Map
GoEco Corp. chose an office located in Quezon City as it has the largest population in the
Philippines. Another thing is that the area the company chose is strategically located, as it is near
to certain establishments that can be of use to the company’s day-to-day operations.
Meriton One Building, 1668 Quezon Ave, Diliman, Quezon City, 1103 Metro Manila
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e. Transportation Availability
A table is made below to identify which transportation types are easy to access around the area
of GoEco Corporation’s main office for personal business transactions.
Transportation type
FX/UV
Jeepney
Tricycle
Private Vehicle
LRT/MRT
Taxi Cab
Angkas
GrabCar
II.
Easy access
Needs to walk before
gaining access for
transportation




(There are available parking
spaces)



(May vary depending on the
user’s pickup point)

(May vary depending on the
user’s pickup point)
Management Aspect
a. Worth of the Industry Where the Business Belongs
b. Organizational Chart and Organizational Structure
President
Financial Officer
Marketing Officer
Marketing Staff
Production & Operation Manager
Production Assistant
Production Staff (1)
Production Staff (2)
Production Staff (3)
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c. Business Model Adopted
Our business model discusses key components that will help to establish the business. Key
Partners will help to start the business by providing the needed materials, equipment/facilities
and manpower and also to instantly reach out to the target market. Key Resources are the human
sources or assets that the business has to achieve a successful business. Key Activities are the
tasks or works that the business will operate and execute to manage the business and afterward
will have business progress. A value proposition is the values the business provides to the
customers and giving customers their satisfaction and needs. Customer relationship describes
how can the business relates to its customers. Channels are the list of publication that the
business would be engaged in, these channels will surely reach out and communicate to its target
market. Customer segments represent the group of people who will benefit from the business.
Cost structure specifies the cost of each portion that has the biggest or the lowest cost, it impacts
the cost of the business. And lastly, the Revenue Streams explains how the business will get
revenue from its products and the business.
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d. Job Titles, Job Description, Job Specification and Compensation Package
Position
President
Job Description
 Represents the company when
dealing with the governments and
community
 Assures that the operations within
the
company are compete while ensuring
it operates base on the given strategic
plans to achieve its goal
 Builds leadership for the company
 Encourages investors to invest in the
company
 Meets board members and other
executives to assess the direction of
the company to ensure that it is in
line with the company’s stated
mission
 Works with the board members to
make plans and implementation in a
short-mid and long term of strategy
for the benefit of the company
 Oversees all the budgets, staffs and
other executives in organization
 Compensation amounting to
₱
35,000 monthly
Job Specification
 Has a good communication skill, with
the ability to communicate with its
board member’s executives, and
frontline employees.
 Has a strong leadership skills with the
ability to inspire people and influence
them through their actions
 Must be innovative on planning,
strategizing and executing for the future
of the company
 Knowledgeable on handling a financial
and operation of the company, as well
as in regulations, policy, and
procedures that may affect the entire
company
 Must have a high level of emotional
intelligence
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Finance
Officer
Marketing
Officer
 Manages financial issues and decision
making in the company
 Creates financial data reports
 Prepares budget and management
activities for the company
 Manages cash controls and bookkeeping
 Prepares financial statements, balance
sheets, and income statements
 Ensures that all expenses are within
the budget allocated to the project.
 Edits company’s financial record
based on transactions made
 Monitors accounting inconsistencies
 Compensation amounting to
₱
20,000 monthly
 Must have a Bachelor’s degree in
Financial Management or Accounting.
 Has a work experience of at least 5
years related to Finance and
Accounting.
 Has a superb knowledge in accounting
,financial and bookkeeping procedures
 Has the ability to work well within a
team and individually
 Has mastery in using MS Office or
other accounting related software
 Has an excellent written and verbal
communication skills
 Has exceptional analytical, planning
and time-management skills
 Superb organizational and multi-tasking
skills
 Has excellent presentation skills
Prepares and develops events ,  Must have a Bachelor’s degree in
marketing campaigns and publicity
Marketing or Business Administration
materials for the company
 Has a work experience of at least 5
years related to marketing
Creates a schedule of marketing
events
 Has deep knowledge about different
marketing principles and techniques
Continuously learn and enhance
skills about different marketing  Has a profound understanding about
software to innovate products
how social media works
Monitors and manages customer  Has the ability to work well within a
queries, complaints and feedbacks
team and individually
Oversees and manages marketing and  Has mastery in using MS office and
sales performance
other related marketing software
Manages marketing materials
 Has exceptional writing skills and
experience
Oversees
and
manages
the
company’s social media
 Has an excellent written and verbal
 Analyzes and creates reports based communication skills
on marketing campaigns
 Has exceptional analytical, planning
 Compensation amounting to
₱ and time-management skills
20,000 monthly
 Superb organizational and multi-tasking
skills
 Has excellent presentation skills
Production  Ensures all legal and regulatory  Must have a Bachelor’s degree related
and
documents are filed and monitor to operations management or any other
Operation
compliance with laws and regulations
related to business management
Manager
 Works with the board of directors to  Strong
knowledge
in
financial
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determine the values, mission and
plans for short and long-term goals
 Identifies, addresses problems and
opportunities for the company
 Supports
worker
communication
management-team
 Checks the budgeting, reporting,
planning and Auditing
 Promotes the company culture that
encourage top performance and high
morale
 Provides
leadership
for
the
organization, develop, implement
and review operational policies and
procedures
 Compensation amounting to
₱
30,000 monthly
management
 Has the ability to build a consensus and
relationships among managers, partners
and employees
 Must know the general finance
budgeting, including profit and loss
balance
sheet
and
cash-flow
management
 Has experience in management,
operation and leadership
 Has an excellent written and verbal
communication skills.
Marketing
Staff
 Updates social media accounts of the
company
 Cooperates with the marketing officer
 Helps in identifying different
marketing trends
 Communicates
with
customers
directly
 Conducts market research and
surveys
 Assists the marketing officer in
creating events, marketing campaigns
and publicity materials for the
company
 Continuously learn and enhance
skills about different marketing
software to innovate products
 Compensation amounting to
₱
18,000 monthly
 Must have a Bachelor’s degree in
Marketing or any related to business
 Has a work experience of at least 3
years related to marketing
 Has the ability to work well within a
team and individually
 Has deep knowledge about different
marketing principles and techniques
 Has competency in using MS office
and other related marketing software
 Has good organizational skills
 Has an excellent written and verbal
communication skills
Production
Assistant
 Works with the Financial officer  Must have a Bachelor’s degree related
regarding budget analysis
to business
 Helps the Production and operation  Has a working experience of at least 3
manager in preparing production years in production
activities effectively
 Has a good written and verbal
 Oversees quality control and testing communication skills
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Production
Staff
III.
checks
 Monitors inventory and manages
equipment maintenance
 Creates a production plan or schedule
for production staffs
 Develops production process to
improve production time and prevent
possible errors or delay
 Compensation amounting to
₱
18,000 monthly
 Has the ability to work well within a
team and individually
 Has competency in using MS office
and other
 Has good analytical and problem
solving skills
 Has the ability to multi-task
 Monitors equipment and machineries
used in production process
 Maintains the production area clean
and safe
 Make sure that the production runs
perfectly
 Assembles different parts of the
product
 Packages finished products
 Stores finished products and raw
materials in the warehouse
 Monitors quality and performs
testing checks of the products
 Compensation amounting to
₱ 15,000 monthly
 At least a high school graduate
 Has a working experience of at least 2
years in production
 Must be physical fit and capable of
lifting heavy weights
 Has the ability to multi-task
 Can work on foot for a long duration of
time
 Must be dependable and reliable
 Has perfect vision abilities
Technical Aspect
a. Business Operation Hours/Days
The office is open on Mondays to Fridays 9am to 5pm. The office will stop
operations on regular holidays and for special non-working holidays, a “no work, no
pay” rule applies. Employees are expected to work for 8 hours a day, with a 1-hour
lunch break and two 15-minute breaks during his/her shift. For overtime work,
employees will be given an additional percent of their salary. Customers at the office
will be received by the specific employee within that shift.
Equipment
Basically, the equipment to be used are stove for melting the beeswax. Once we put
the melted products in the container, we will then put it in the refrigerator for less
than an hour.
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Source of Supply
Ilog Maria is the primary supplier for our raw material bees wax. Ilog Maria is
located at #7 KM 47 Ilog Maria Honeybee Farm Lalaan 1 Aguinaldo Hway, Silang,
Cavite
BC Fragrance (The Fragrance Specialists) is the company's scent supplier located at
170 Tomas Morato cor. Scout Castor Unit 6G, 20 Lansbergh Place, Brgy. Sacred
Heart, Quezon City
Metrocan is the company’s product container supplier which is located at 1196 G.
Angeles, Valenzuela, 1448 Metro Manila
Criselda's Banana Chips Address: Pantubig, San Rafael, Bulacan
What the corporation will do about the suppliers is they will have a partnership with
those businesses that manufactures banana-related products so the husks that they
dispose will be recycled by the company. Since banana husks can also be fertilizers
the disposal of solid waste will then be minimal.
Employee
The employees of the GoEco Organic Wax evaluated monthly by the HR department.
Their performance, productivity, attitude will be assessed if they are align with the
company’s vision and mission.
Wages
₱400 minimum wage (Provincial Rate)
Factory Workers
₱400
Security Guards
₱400
Supervisors
₱400
Manager
₱800
Benefits

Social Security System (SSS) – includes compensation for medical services,
appliances, and supplies in an accredited hospital; rehabilitation services,
including medical, surgical, and hospital treatment; and income cash benefit.
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

PhilHealth – the company will give financial assistance for inpatient and
outpatient hospitalization.
Holiday Pay – workers who will have shifts on Holidays will be given twice
his/her wage rate per day.
Regular Holidays are as follows:
January 1, 2019, Tuesday – New Year’s Day
April 9, 2019, Tuesday – Araw ng Kagitingan
April 18, 2019 – Maundy Thursday
April 19, 2019 – Good Friday
May 1, 2019, Wednesday – Labor Day in the Philippines
June 12, 2019, Wednesday – Philippine Independence Day
August 26, 2019, last Monday of August – National Heroes Day
November 30, 2019, Saturday – Bonifacio Day
December 25, 2019, Wednesday – Christmas Day
December 30, 2019, Monday – Rizal Day

Bonus and Incentives – every time the company will meet its sales quota in a month,
employees will be given twice their salary per day for a week.
Leave Benefits
 Maternity Leave – pregnant employees who have worked 6 months within the
company shall be granted a maternity leave of 2 weeks prior to her due date, and after
giving birth she will be granted a 4-week leave with full pay based on her regular
salary.
 Paternal Leave – according to R.A No. 8187, or Paternity Leave Act of 1996, all
legitimate spouse will be granted a 7-day fully paid leave privileges.
 Sick Leave/Calamity Leave – Employees will be given 15 days’ sick leave that they
can consume for the whole year with fully paid salaries.
 Vacation Leave – Employees are granted 15 days of vacation leave, that they can
separately consume within the year.
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b. Product Processes and Service Provided
In a sauce pan, put 50Kg.
besswax and melt it.
Once melted, add 20mL of
natural oil as well as add 5
drop of citronella oil into the
bowl. Mix the oil mixture into
the beeswax as it melts
gradually.
Place the mixture to the
preferred container.
Remove the mixture from the
stove and strain it to separate
the mixture from the husks.
When the beeswax if sully
melted, add the Banana husk
and boil it for about 3 to 4
minutes.
Allow the mixture to harden.
This will take about 45 to 60
minutes. When the mixture is
set, place it inside the storage
area.
The wax mixtures will be
placed in a box and after
proper packaging is applied,
it is now ready for delivery.
Set up a double boiler.
Fill a saucepan with water.
Bring the water to a simmer
over medium and put a pan
above the bowl.
The Figure shows the step by step production of the GoEco Organic Wax Multipurpose.
Once the company got the materials the production will start right away. The first step is
to extract the Banana oil from the husk, later on, combine it with the fresh beeswax. Let
the mixture boil to perfection and add the additional coloring. It will be placed in a small
round container, once the mixture is set the product will be placed in the storage area.
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c. Estimated Number of Units Produced Versus Number of Units Sold
Historical Supply for Cleaning Agent
1,283,461
1,490,136
2016
2017
1,700,077
2018
Historical supply for cleaning agents increased. This is based on the historical demand
per year and with the supply of the competitor’s product.
Projected Supply for Cleaning Agent
1,913,334
2,129,962
2019
2020
2,350,012
2021
Projected supply increased, based on the increase in population per year.
d. Supply Chain Model Adopted
Get raw
materials from
supllier
Make/produce an
organic cleaning
wax
Put it in the
warehouse
Distribution of
Product through
online selling and
delivery
Final Consumer
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e. Waste Disposal Methods
GoEco Organic Wax is composed of raw materials such as beeswax, fruit husk (banana husk) and natural
oil. We can properly disposed the raw materials that is not been used by selling the beeswax to candle
making business. For banana husk we can properly dispose it by selling it to a gardening business
because according to the article that we’ve read peels add potassium and phosphorus to compost which
promote root improvement and overall plant health when consolidated into garden soil. However, if our
raw material is already rotten we will use incineration or we can bury into the ground.
IV.
Marketing Aspect
a. 4P’s in Marketing
Product
GoEco Company is a Philippine-based business that will produce eco-friendly organic cleaning
agent. It will be the best cleaning agent in the country, this will advocates zero waste products
and will reduce the percentage of husk wastes that can pollute our environment.
Price
One of the major factor when consumers are buying a product is the price and it remains a major
concern for Philippine consumers. The researchers chose the Psychological Pricing approach.
This is used when the consumer responds on an emotional, rather than rational basis. At some
point, consumers use price as an indicator of all sorts of factors, especially when they are
unfamiliar with the product. Even if the product is new in the market, this could easily attract
people’s attention in a supermarket when choosing an underarm product.
Promotion
Promoting Scentenella as a new entrant product to consumers requires different strategies that
will make the brand recognition more appealing to the target market.
● GoEco Company will be use Point of Purchase strategy so that it will become more accessible
to the public. The company will retail its products in different stores across the country to
highlight the product and to attract customers who will be passing by the shelves easily. The
container of the product will indicate the product’s features and details like the ingredients,
instructions for use, manufacturing date, expiring date and some reminders for the users.
● The E-commerce marketing will be done thru online selling websites. This will be an easy way
to promote our product and what the product offers since today people are inclined to do online
shopping rather than going out to buy things that they need in everyday life. Online selling is a
convenient and direct way for consumers to search for products and information they need.
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● One of the best way to promote our product is through the use of social media and online ads
since this generation tends to browse online rather than read a newspaper or magazine.
Advertising can be done online where the capabilities and the product itself will be highlighted
with well-photographed products. Testimonies of the satisfied consumers will be posted on
different social media accounts of the company so that brand awareness will expand.
Place
The researchers produce Scentenella not only as a cleaning agent but consumers can also use the
product as an insect repellant. Consumers can buy our product in drugstores and supermarkets
near them, with this, our product can be accessible to all consumers who want not just to clean
their house but also free from insects.
b. Demand and Supply Analysis
Based on the statistics above, the Demand and Supply for cleaning agent had increased. Through
this the gap analysis the untapped market of the company’s competitors considered the
company’s target in the market. After analyzing the projected demand and supply, the
corporation narrowed down the demand the target market which are the housewives. The
corporation got the population of women in the National Capital Region from Philippine
Statistics Authority. With the increasing demand the corporation will target the untapped market
of the competitors which is 2,562,852.
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c. Advertisment and Promotional Strategies/Models Use
Online and Social Media Ads
Online and social media ads are a group of operations and methods used to generate publicity
through social media channels and Internet communities. Social media advertising is the
planning and execution of advertising campaigns through those channels.
d. Porter’s Framework
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Threat of new entry
New business entering the marketplace can be threaten to their competitors that has built up a
large base of experience in the industry. The company will take a risk to operate and continue
with other brands to prove their ability to gain market share. The threat of new entrants.
Therefore, new entrants need licenses, insurances, distribution channels, and other requirements
that are not easy to obtain. Even though it looks impossible to enter the new entrants to cleaning
industry, it can be happened. Many low-cost companies have successfully entered the cleaning
industry over the years by using a strategy a good marketing that will attract the consumers and
build an experience to the new entrants.
Suppliers
Suppliers for the product are bee farm such as Ilog Maria. BC Fragrance and Criselda's Banana
Chips directly provide raw material, for the final product. Metrocan supplies the container for the
product
Buyers
There is a large market segment for this product. Common buyers for this product are
housewives and people affiliated with the cleaning industry. Aside from its target market,
restaurants are also a market for this product, for maintaining cleanliness and sanitary
environment.
Rivalry among existing competition
As an entrant in the cleaning industry, the company’s main competitor is Wipe out.
Threat of substitute
As another alternative product for all purpose cleaner. Limpiar is considered a threat as a
substitute to its competitors. Consumers can switch to an eco-friendly and organic product.
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e. BCG Matrix
HIGH
LOW
Wipeout is the top cleaning agent for wax types.
Aside from having a high growth market, it also
has a high market share in the cleaning agents
industry.
Kiwi shoe cleaner has a high growth in markets
but has a low share in the market share for
cleaning agents.
LOW
Star Floorwax is not a cleaning agent made for
shoes, but it is one of the cleaning agents that
has a high market share since it has been
existing for the market for a really long time,
and as for the market share for floor cleaners,
and is also at the top of its game.
V.
The GoEco Cleaning wax is still in the Dog level,
since being a new product in the market it
means that it still has low growth and low
market share.
Financial Aspect
a. Basic Assumptions
1. The corporation is registered with the Securities and Exchange Commission and
has complied with all of the requirements.
2. Philippine Accounting Standard (PAS) 1 is used in the presentation of the
financial statements.
3. Cash is deposited under the corporation’s name and a specific amount is invested
in short term highly liquid investments.
4. Procurement of raw materials is done monthly and will be used for the same
month.
5. The equipment is depreciated based on similar equipment used in the same
industry.
6. Utilities Expense will increase every year. This assumption is based on inflation.
7. Purchases are paid in agreed percentages and the remaining balance to be paid in
the following year.
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8. The corporation is registered with the Intellectual Property Office of the
Philippines regarding its intangible property and has paid the corresponding fees.
9. Other expenses represent various expenses from production, selling and
administrative that are miscellaneous.
b. Cashflow
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c. Income Statement
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d. Balance Sheet
e. Financial Analysis
e.1. Financial Ratios
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e.2. Payback Period