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CHAPTER 1
Executive Summary
A. Name of the Project
“Netbox” is the name of the business. Netbox means Internet in Boxes. This box
presents as an internet related business and customers can have an idea of what
services Netbox will offer. It is a two syllable name and can be easily remembered.
The name is not easily mistaken for another for it is unique.
B. Description of the industry
Our business is a Social Advertising services, a fairly new industry that all of
us are customers yet some of us have no idea. We all use Social Media and other
websites that have Advertisements in them. This the trend of the new age now,
Advertising online were people are now spending much of their time every day. We
are also going online with most of our activities like shopping etc. These days
the Internet is a commodity which many of us have come to depend on, people
want internet access that's available whenever they want or need to use it, as a
precious commodity and the foundation to any business
C. Description of the Project
Netbox is a Wi-fi service provider were the users will have advertisements pop
up on their gadgets when they are using it on a timely basis. We will target that
Netbox can cover the whole city so where ever users go they will still be connected to
Netbox. This is possible by connecting a series of Wifi mesh routers to a central
system that can sync all of the routers. We will set up a router grid that will be within
range of 50 meters wherever you are in our coverage. The project will be utilizing
multiple Fibr speed connections that will mesh together in order to provide high speed
internet access to our users. Access points will be spread throughout the city in a way
that only a maximum of 3 bounces will be needed in our wifi mesh in order to reach
an Access point. Customers can connect, using Netbox platforms that will be spread
all throughout the city with charges depending on the time they would like to connect.
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Netbox will also provide advertising services to prospected clients, users who
connect will have advertisements as they are using the service, and these are paid
advertisements coming from clients. These advertisements will be broadcasted every
15 minutes on all the users in different areas.
D. Location of the project
Figure 1. Router Grid
Colored dots represents the Wifi mesh routers, they are arranged in a way that they
are within range of 100 meters wherever you are in this grid.
White dots with Circle represents the Access points, they are carefully placed that all
routers will be within range of 3 bounce from their nearest Access points.
Color/Area
Coverage
Area 1- Red
Santo Nino, Upper Balangasan
Area 2- Blue
Upper Gatas, San Jose
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Area 3- Yellow
Santa Maria, Tuburan
Area 4- Green
Balangasan, Dumagoc, West Santa Lucia
Area 5- Orange
Santa Lucia, Gatas
Area 6- Pink
San Francisco, Tuburan, Port area
Table 1. Location of Areas
E. Highlights of Major Assumptions
• Internet becoming a need for everyone in their daily routine, the trend of people
becoming dependent on internet is assumed. Access to internet is not free and this
aspects rises an opportunity to monetize this trend.
• Expected market share for internet users and advertising clients are 10.95%
equivalent to 5000 users and 24.44% equivalent to 192 clients respectively.
• The expected cost of the service is 5,184,081.31 PHP for year 1.
• The expected selling price for internet users and advertising clients is 5 PHP and
300 PHP respectively. .
• The expected cost of the project is 4,669,200 PHP.
• The internal rate of return is 67.494399%
F. Summary of findings and conclusions
Market Feasibility
The project is feasible in terms of the market. The study showed that there is
unsupplied demand of 44.06% of advertising businesses, the project can
accommodate 55.47% of the unsupplied demand representing 24.44% of the total
market. The market share for internet users is 10.95% based on capacity.
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Technical Feasibility
The project is feasible in terms of technical aspect. The technology that can
support this project is existing and available for purchase. The expected price can
cover the cost of service enough to make a profit. The software can be developed to
integrate the applications needed for this project. The city government allows private
entities to place objects in posts in the city, provided that a monthly fee is paid to
ZAMSURECO.
Management Feasibility
Netbox will be a private corporation, to be incorporated by Ms. Cyden R.
Clavero, Mr. Nico L. Durangparang, Mr. Carl Joseph. Fuerzas, Mr. Arman T. Tingson
and Ms. Roan Mae O. Uy, all are residents and citizens of the Philippines. 19,455
common stock are to be issued with P240 Par Value.
Financial Feasibility
The project is feasible in terms of financial operation. The payback period is
1.42 years. The net present value is 7,138,498.62 PHP. The profitability index is 2.53
and the internal rate of return is 67.494399%. Return on sales is 28% and the return
on investment is 63% for the first year of operations.
Socio-economic feasibility
The projects provides a medium for people to connect and have access to
relevant information. It helps the economy grow by providing businesses a means of
an effective advertising, thus increasing customer awareness of their products and
attracting potential sales.
General Conclusion
Overall the project is feasible in all aspects of the study and provides
economic and social benefits to the owners, the users and the clients. The market is
existing and can be penetrated. The technology needed is available and legal
requirements can be complied. Based on the financial study, the cost of operations can
be recovered by the sale and make a profit. The project will be a general partnership
composing of 5 members’ equally contributing capital for the project.
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Chapter II
Market Study
Netbox is an internet provider that serves accessible fast wireless fidelity throughout the
community of individual users which also offers a wide range advertisement services. The
intended users are the business entrepreneurs who are willing to promote their venture
through advertisement in the commercial market as well as the internet users which are tend
to subscribe the internet promo services. It caters the following barangay districts in Pagadian
City such as Balangasan, Gatas, San Francisco, San Jose, San Pedro, Santiago, Tuburan,
Santa Maria, Santo Niño and Dumagoc.
This chapter encompasses the demand, supply, demand and supply analysis, projected
market share, projected revenue and marketing strategies and programs of Netbox.
A. Study of Demand
Target Market
Internet access is becoming a commodity in our technologically advanced world.
Access to the internet provides users easy access to information and entertainment. It
also connects people from different parts of the world in an instant. Since Netbox will
only be within the area of Pagadian City, the residents of the city will be the target
market. Netbox also considers the age of the users. Only those who are from 15 years old
to 64 years old are the targeted markets which is equivalent to 59.8% of the population.
This will cover the following barangay districts such as Balangasan, Gatas, San
Francisco, San Jose, San Pedro, Santiago, Tuburan, Santa Maria, Santo Nino and
Dumagoc.
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Barangay
Balangasan
San Francisco
San Pedro
Tuburan
Santo Nino
Population
14995
4709
10711
9689
9164
Barangay
Gatas
San Jose
Santiago
Santa Maria
Dumagoc
Population
2458
7843
3871
5049
8409
77169
Total
Table 1. Current Population of the Covered Barangays
Source: Philippine Statistical Authority
Based on the survey 96.27%, equivalent to 258 respondents access the internet. The
other
3.73%,
corresponding
10
respondents
rejected
accessing
the
internet.
Netbox will also be a medium for advertisements for businesses. It is also offers
advertising services to the business entities who are willing to advertise their products and
services in a commercial market. The service is only available to those operating business
entities within Pagadian City.
The proponents conducted a survey of businesses in Pagadian City and it showed that
59.44%, equivalent to 148 of the businesses are currently advertising their products and
services. The remaining portion of 40.56% that rejected using any form of advertisements are
still willing to advertise if an opportunity arises.
Historical Demand
1. Demand for People Using the Internet
The demand can be gathered only within the chosen barangay districts covered by the
Netbox service in a form of conducting a sampling survey. The proponents have gathered the
following:
Total
2013
72 022
2014
73 023
2015
74 038
2016
75 068
2017
76 111
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Table 2. Past Population of Covered Barangays
Source: Philippines Statistical Authority
Failure to obtain statistical data regarding past number of users of internet, the
historical demand is computed by multiplying the historical population to the percentage of
the age segment from 15 to 65 years old (59.8%) multiplied to the percentage (96.27%) of the
market accessing the internet. The resulting figure is the historical demand of people
accessing the internet.
43816
44000
43500
43216
43000
42623
42500
42038
42000
41462
41500
41000
40500
40000
2013
2014
2015
2016
2017
Population of Internet Users
Figure 1: Historical Demand of Internet Users
2. Businesses Advertising for the Past 5 Years
The demand for advertising of business entities in Pagadian City can be gathered by
surveying those established business enterprises located within the city proper, the results are
as follows:
2013
3165
2014
3457
2015
3743
2016
4855
2017
4771
Table 3. Number of Registered Business Entities
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Failure to obtain statistical data regarding the past number of business entities
advertising, the historical demand is computed by multiplying the number of business entities
to the percentage (59.44%) of the business enterprises multiplied to the percentage (20.54%)
of the business firm advertising on contractual paid advertisements. It includes business
product advertising through radio and newspaper because they are the only services available
that offers contractual paid advertisements within the Pagadian City.
700
Number of Business
600
500
400
422
387
593
583
2016
2017
457
300
200
100
0
2013
2014
2015
Years
Population of Businesses Advertising on Radio and Newspaper
Figure 2: Historical Demand of Business Entities Advertising on Contractual Paid Advertisements
Past Demand Pattern
The historical demand of internet users is steadily growing, as people nowadays are
very dependent on the use of gadgets such as laptops, smartphones and etc. The need of
internet is also rising as it is becoming a daily need for people. The internet connects people
in a very large scale, it gives voice to everyone for us to hear. Internet is taking over the
world and Pagadian is not an exception to this. The people of Pagadian City are becoming
more and more dependent in the use of internet.
The historical demand of the business entities advertising in Pagadian City is
fluctuating, there is no obvious pattern to it. Through the years of 2013 to 2015, the number
of advertisers was steadily growing, but by the year 2016, many business enterprises started
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to open and spike up the number of advertising entities. By the year 2017, it slows down to a
number smaller than the previous year.
Projected Demand
The projected population for 2018-2019 is based on the data provided by the
Philippine Statistics Authority (PSA). The projected population for 2018-2022 is computed
by multiplying the 2017 population by the growth rate provided by the PSA, which is
1.39008%. All other relevant data presented below are based on the computations from the
obtained historical demand calculations.
47500
46948
47000
46500
46304
46000
45670
45500
45044
45000
44500
44426
44000
43500
43000
2018
2019
2020
2021
2022
Projected Demand of Internet users
Figure 3: Projected Demand of Internet User
The projected number of business entities for 2018-2019 is based on the data provided
by the Permits and Licenses Division of Pagadian City. The projected number of business
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entities advertising for the year of 2018 to 2022 was projected using Statistical Parabolic
which has the smallest deviation. (See Appendix). All other relevant data presented below are
based on the computations from the obtained historical demand calculations.
1000
912
900
848
784
800
700
722
661
600
500
400
300
200
100
0
2018
2019
2020
2021
2022
Number of Business Advertising on Radio and Newspaper
Figure 4: Projected Demand of Business Enterprises Advertising on Contractual Paid
Advertisements
Evaluation of Projected Demand
Projected demand for internet users was calculated by multiplying the population by
the growth rate provided by the Philippine Statistical Authority multiplied to the population
to the percentage of the age segment from 15 to 65 years old (59.8%) multiplied to the
percentage (96.27%) of the market accessing the internet.
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48000
47000
Number of Users
46000
45000
44000
43000
42000
41000
40000
39000
38000
Historical Demand
Years
Projected Demand
Figure 5: Evaluation of Projected Demand for Internet Users
Projected demand was obtained by projecting the number of business entities using the
statistical parabolic multiplying the number of businesses to the percentage (59.44%) of the
market advertising multiplied to the percentage (20.54%) of the market advertising on
Newspaper and Radio Stations.
1800
1600
1400
Number of Business
1200
1000
800
600
400
200
0
Years
Historical Demand
Projected Demand
Figure 6: Evaluation of Projected Demand for Business Entities Advertising on Radio and Telephone
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B. Study of Supply
Competitors
Netbox is a pioneer in the city wide public Wi-Fi, there is no existing entity
that provides the same service. Therefore, the proponents concluded that there is no
direct competitor for the service of internet provided by Netbox. Although there is no
such, there are still an existing indirect competitors such as Private Wi-Fi, Data, and
Internet Café. However, due to the complexity of the data, it is impossible to attain the
appropriate information needed. To solve this issue, the proponents devise its survey
questionnaire that will answer specifically to the demand of project.
On the other hand, in the advertising services of Netbox, there are already
existing entities provides advertising services such as Radio Stations and Newspapers. In
Pagadian City, these entities are already establishing for years. They are the direct
competitors for they also offer the same service of advertising.
Historical Supply
The figures are obtained through the interview and survey that the proponents
conducted on the said Radio Stations and Newspapers by the questions, “How many are
advertising on your platform?” The historical supply cannot be determined in an instant due
to the data provided in a yearly average. Because of the inadequacy of records, the data
needed is insufficient. Therefore, the historical supply will remain constant of what is
currently provided.
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Radio Station/ Newspaper
Pagadian Times
Number of Entities Advertising of their
Platform
35
The Monitor
15
DXPR
50
Radyo Natin FM
80
Baganian Broadcasting
30
DXRC FM energy
60
Brigada Mass Media Corp.
0
DXKV-FM
100
Total
370
Table 4. Number of Entities Advertising on Radio and Newspaper
Projected Supply
The projected supply for 2018 is based on the results of the survey conducted. The
projected supply for succeeding years is calculated by getting the average growth rate of
business which is 8.37% (See Appendix) multiplying it to the number of supply that have
gathered on the survey interview.
Number of Business Advertising on Radio and Newspaper
600
510
474
500
439
404
400
370
300
200
100
0
2018
2019
2020
2021
2022
Figure 7: Projected Supply of Business Entities Advertising on Contractual Paid Advertisement
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Evaluation of Projected Supply
Projected supply can’t be calculated from the results of the interview and survey
materials conducted to the current suppliers. Using the growth rate of business, 8.37% (See
Appendix) in order to solve the matter and come up with the projection of the supply.
C. Demand-Supply Analysis
Demand Gap
Demand and Supply Gap Analysis is very essential in terms of analyzing current
market because it shows some of the market deficiencies or supply gap in order to assess of
how much product or service that can still serve for the satisfaction of demand. The gap is
calculated by subtracting projected supply from projected demand. The table below shows
the available market for the next 5 years:
Year
2018
2019
2020
2021
2022
Total
Table 5: Demand for Internet Users
Projected Demand
44,426
45,044
45,670
46,304
46,948
228,392
Year
Projected Demand
Projected Supply
Demand Gap
2018
661.36503
370
291.365
2019
722.15271
404.0076
318.1451
2020
784.23077
438.73711
345.4937
2021
847.59922
474.18853
373.4107
2022
912.25806
510.36185
401.8962
Total
3927.6058
2197.2951
1730.311
Table 6: Demand Gap for Business Entities Advertising on Contractual Paid Advertisements
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Market Share
The market share can be projected by analyzing the demand and supply gap data. It is
the portion of excess supply that is currently not satisfied by the existing supply. However,
due the capacity of the services provided, it cannot accommodate all of the demand gap.
Based on the capacity of 192 clients dividing it to the total projected demand, the prospected
market share is 4.89%
MARKET SHARE FOR CONTRACTUAL
PAID ADVERTISEMENTS
Unsatisfied
Demand;
19,62%
Market
Share;
24,44%
Supplied;
55,94%
Figure 8: Market Share of Business Entities for Contractual Paid Advertisements
The market share for internet users is calculated by multiplying the projected demand
of internet users to the percentage based on the conducted survey that was affirmative in
using a platform such as Netbox. The prospected market share of internet users is 89.55% of
the projected demand. However due to normal capacity of 5,000 users only 10.95% of the
unsupplied demand ca be catered.
MARKET SHARE OF INTERNET
USERS
Unsupplied
Demand,
Market
Share
10,95%
89,05%
Figure 9: Market Share for Individual User
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D. Price Study
Table 5. Costing base on capacity of 5,000 users per month
Attributed to Internet Users
Pricing
Direct Material
Total
Per unit
28,487.14
0.02
122,298.66
0.07
99,604.86
0.05
3,214,285.71
1.76
120,000.00
0.07
9,150.00
0.01
25,000.00
0.01
44,642.86
0.02
2.01
2.46
4.46
5.00
Overhead
Electricity
Depreciation
Internet Fee
Vendo Rent
Router Placement Fee
Amortization
Maintenance
Total
Mark-up
Taxable Price (VAT)
Price Including Tax
In computing the price, the possible cost is estimated by considering the direct materials such
as the user-pass receipt, the Overhead for the electricity expense and the fixed cost consisting
of the Internet fees, yearly rental of posts where the routers will be placed, vendo rent
amortization of the intangible asset and maintenance cost. The decided price is 5.00 for 24
hours of connection with no data limit. The proponents came up with a mark-up of 2.46 (See
computation above) for the 24 hour connection. The decided price of 5.00 is set for Netbox to
firmly establish itself as a daily commodity that everyone will need on their day to day life.
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Table 6. Pricing for the advertisements based on capacity of 192 clients
Attributed to Advertising Clients
Pricing
Direct Material
28,487.14
3.09
122,298.66
13.27
99,604.86
10.81
1,071,428.57
116.26
120,000.00
13.02
9,150.00
0.99
25,000.00
2.71
44,642.86
4.84
Overhead
Electricity
Depreciation
Internet Fee
Vendo Rent
Router Placement Fee
Amortization
Maintenance
Total
165.00
Mark-up
102.86
Taxable Price (VAT)
267.86
Price Including Vat
300.00
The proponents have decided on this prices based on the results of the survey. This
prices are very competitive with the existing supply of the competitors. Every 15 minutes
Netbox will broadcast to all its users in different areas advertisements of the entities. One
spot is one broadcast of the advertisement of the entity.
E. Marketing Strategies and Programs
Product/Service Strategy
Accessing and browsing to the different internet sites is becoming a necessity
for every individual. It is a means of communication, entertainment, news source and in
general a ways for us to connect with the rest of the world. And this need does not come
for free. Every individual in our society today owns gadgets that can access the internet
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be it a smartphone, laptops and etc. The need for internet is very high for us people in a
technologically advancing world. There will be a great demand for cheap internet. And
Netbox can provide that. Netbox will be seen as the more economical option for people
accessing the internet.
With Netbox having so many users, it will also be a platform to inform, to
spread, to communicate with the users. With this many entities or businesses would like
to grab on to that opportunity to spread their own agenda by advertising via image or
video. Radio stations and Newspaper have been slowly declining in popularity, their
listeners and readers is slowly declining in numbers, unlike the Internet which is the
future of information technology with it becoming part of our daily routine to check on
our phones to see what’s up and what’s happening. Netbox will help the local economy
grow by enhancing the speed of which information is spread in the City. With a
centralized Wi-Fi, everyone can be reach out.
Pricing Strategy
Netbox will offer a service were the price is so low that you can afford to use it every
day. With prices of data load not that affordable for users to be able to use it on a daily basis
and maintain an economical budget. With Netbox, you can enjoy daily access to internet
while still maintaining a budget. And for the pricing of the Advertisements, they are very
competitive with the existing market today. Netbox prices are significantly more economical
than what is being offered by the competitors, with Netbox being able to reach out to more
people this means that more people will be able to see or hear their advertisements.
Promotion and Advertising Strategy
Netbox will be a new business in Pagadian City, people will need to know what is it
and how it works. Promotion and advertising will play a major role to the success of Netbox,
to build a recognition on the users and to gain their loyalty.
To advertise Netbox, the proponents will use a mix method of conventional and
online promotion and advertising; social media, tarpaulins, flyers and leaflets. Broadcasting
the service of Netbox and the very cheap price of internet access through the use these
methods creating customer awareness and leave a good impression to our users.
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To promote the advertising, Netbox will broadcast to its users blank Ad space here for
potential customers to see. In the Ad space here will be the proponents contact information
for inquiries regarding the services.
Place Strategy
Netbox will cover barangays near the center of Pagadian City were most of the people
live. The Barangays covered are Balangasan, Gatas, San Francisco, San Jose, San Pedro,
Santiago, Tuburan, Santa Maria, Santo Nino and Dumagoc. Wi-Fi mesh Routers will be
strategically place so that wherever you are in the Grid system you are within 50 meters from
the closest router.
Vendo machines will also be spread throughout the city where users can gain access
to the system. An office will be setup to accommodate potential advertising entities and to
customer services, this will be located in Barangay San Francisco near Saint Columban
College
Conclusion on Market Study
The Market study showed that there is a demand on our service and that the existing
supply was not sufficient to meet the demand. There is demand gap for the current period and
the projected periods to come. The expected price for the internet access is 5 PHP for a 24
hour connection with no data limit, and for the advertising price is 300 PHP. The marketing
strategies to be adopted are both conventional and new, the proponents have decided to
advertise by means of tarpaulin posting, flyers and online.
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Chapter III
Technical Study
A. Service Description
Internet access is usually provided by either wired connection or wireless access
points. Netbox will provide wireless access to users using wired connections provided by
internet service providers. Vendo machines will be spread throughout the city on designated
locations, this Vendo boxes will be the platform on where users can connect to Netbox. Upon
dropping a coin to the machine, a receipt will come out with a unique code which users can
use to connect and gain access to the Wi-Fi. The users first must need to connect to the Wi-Fi
and upon connection they will be directed to an application where they can input the unique
code provided by the machine to enable them to gain access to the internet.
The proponents aim to make access very easy and fast, to be able to do this a
customer friendly user-interface should be implemented. Also, the proponents aim to provide
fast and reliable access to the internet. Fiber connections will be used to achieve this goal.
Netbox will also be an advertising platform. Clients which are business and entities
will be able to promote and advertise their product, agenda or services on our platform. The
clients can advertise via image or a video. Their advertisements will pop-up on the users who
are connected to Netbox, showing their advertisement of either image or video. Their
advertisement will be shown for 3 seconds before the user has an option to close it or skip the
ads. Scheduled advertisements will be broadcast in the designated area in every 15 minutes.
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Mesh Network
A mesh network is a group of routers all in sync to provide internet to a wide range of
area. This mesh networks works like a basketball team the routers being the players, the data
signal being the basketball and the access points being the ring. The routers will receive the
data signal from the users and passes it to the next nearest router until it reaches an access
point. This is possible by using mesh routers, they are routers that have processors in their
board, in a way they are mini computers themselves. The routers due process themselves; the
router finds the nearest point to pass the data signal coming from users.
Figure 1.0 Mesh Network
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B. Service Process User-Network process
Figure 2.0 User-Network Interactions
Users can connect to Netbox by dropping a 5 peso coin, the Vendo machine will print
out a receipt with a unique code which the users will use to log in to the application that the
users will download only on their first connection to Netbox, this said application will
authenticate the said unique code and the users can gain access to the internet. The unique
code is produced by the software installed on the Vendo machine, this unique code will be
passed to the central network and the central network will integrate it to the network and pass
it to all the access points so the user will be able to connect to all routers wherever he may be
situated.
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The image below is the interface of the software of the Vendo machines which will produce
the unique code and control the time on which users can gain access to Netbox.
Figure 2.1 Interface of Ado
This is the interface of Ado, software that is use for controlled Wi-Fi access. This
software is free and can be easily downloaded online. This software can produce unique
codes which the users may use to log in to Netbox, the unique code can be used only by a
single device and will automatically disconnect the user after the time expires. This software
can also control the connection of the user to the internet as to time it allows it to connect.
This software will be installed on the Vendo machines.
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Figure 2.2 User Interface of Netbox Application
The Wi-Fi of Netbox will be open requiring no password to connect. However for the
users to gain access to the internet they must log in on the application that will be
automatically installed on their first time connecting to Netbox. This application is where the
users will input the unique code provided. This application will also serve as the means
Netbox can inject advertisements to the users. The application will be required to be kept
open in the background in order the users can continue to gain access to the internet.
The unique password entered on this application will automatically connect you to
another router in the case you move to another place. The technology that will enable the
syncing of unique codes of all routers is called Passpoint. Passpoint synchronizes all the
unique codes of users among the routers and the servers.
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Figure 2.3 Client-Network Interactions
The client will directly go to the front office to acquire for advertisements service;
they will provide the advertisement in either image or video to the personnel in the office.
The client will subscribe on what plan the clients intends to choose and pay the fees that
encompasses with it. After the front office receives that advertisement from the clients, the
front office shall submit it to the central network. The central network will then be in charge
of broadcasting the advertisement base on the agreed terms. If any issues arise the clients can
forward their complaints or suggestions to the front office.
Figure 2.4 User-interface of the advertising software.
This software will integrate all the routers in the mesh network. This software will
also be used to inject advertisements to the gadgets of the users. The advertisements from
different entities will be broadcasted according to schedule.
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C. Plant Capacity
The proponents will use 20 fiber connections for the access points. Each fiber
connections will have a speed of 1 gigabit, and divided by 8 equals to the effective download
speed of 125 megabytes per second. This speed can cater 250 at most, any more than these
users will already experience lag and latencies. So Netbox will have a capacity of only 5000
users. Future plans to add more access points will add to the capacity with increments of 250
users.
Netbox will be broadcasting 4 advertisements in an hour with interval of 15 minutes
from each other, in 6 different areas. Each area will be broadcasted different advertisements.
To get the maximum advertisement Netbox can broadcast in a day, 4 advertisements in an
hour multiplied by 24hours a day then multiplied by 6 areas, a maximum 576 advertisements
can be broadcasted. With this maximum capacity of advertisements, Netbox can cater up to
only 192 clients for each client must have at least 3 spots of advertisements in a day.
8:00 AM
8:15 AM
8:30 AM
8:45 AM
9:00 AM
9:15 AM
9:30 AM
9:45 AM
10:00 AM
10:15 AM
10:30 AM
10:45 AM
11:00 AM
11:15 AM
11:30 AM
11:45 AM
12:00 PM
12:15 PM
12:30 PM
12:45 PM
1:00 PM
1:15 PM
1:30 PM
Area 1
Entity 1
Entity 7
Entity 13
Entity 19
Entity 25
Entity 31
Entity 37
Entity 43
Entity 49
Entity 55
Entity 61
Entity 67
Entity 73
Entity 79
Entity 85
Entity 91
Entity 97
Entity 103
Entity 109
Entity 115
Entity 121
Entity 127
Entity 133
Area 2
Entity 2
Entity 8
Entity 14
Entity 20
Entity 26
Entity 32
Entity 38
Entity 44
Entity 50
Entity 55
Entity 62
Entity 68
Entity 74
Entity 80
Entity 86
Entity 92
Entity 98
Entity 104
Entity 110
Entity 116
Entity 122
Entity 128
Entity 134
Area 3
Entity 3
Entity 9
Entity 15
Entity 21
Entity 27
Entity 33
Entity 39
Entity 45
Entity 51
Entity 57
Entity 63
Entity 69
Entity 75
Entity 81
Entity 87
Entity 93
Entity 99
Entity 105
Entity 111
Entity 117
Entity 123
Entity 129
Entity 135
Area 4
Entity 4
Entity 10
Entity 16
Entity 22
Entity 28
Entity 34
Entity 40
Entity 46
Entity 52
Entity 58
Entity 64
Entity 70
Entity 76
Entity 82
Entity 88
Entity 94
Entity 100
Entity 106
Entity 112
Entity 118
Entity 124
Entity 130
Entity 136
Area 5
Entity 5
Entity 11
Entity 17
Entity 23
Entity 29
Entity 35
Entity 41
Entity 47
Entity 53
Entity 59
Entity 65
Entity 71
Entity 77
Entity 83
Entity 89
Entity 95
Entity 101
Entity 107
Entity 113
Entity 119
Entity 125
Entity 131
Entity 137
Area6
Entity 6
Entity 12
Entity 18
Entity 24
Entity 30
Entity 36
Entity 42
Entity 48
Entity 54
Entity 60
Entity 66
Entity 72
Entity 78
Entity 84
Entity 90
Entity 96
Entity 102
Entity 108
Entity 114
Entity 120
Entity 126
Entity 132
Entity 138
26
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1:45 PM
2:00 PM
2:15 PM
2:30 PM
2:45 PM
3:00 PM
3:15 PM
3:30 PM
3:45 PM
Entity 139
Entity 145
Entity 151
Entity 157
Entity 163
Entity 169
Entity 175
Entity 181
Entity 187
Entity 140
Entity 146
Entity 152
Entity 158
Entity 164
Entity 170
Entity 176
Entity 182
Entity 188
Entity 141
Entity 147
Entity 153
Entity 159
Entity 165
Entity 171
Entity 177
Entity 183
Entity 189
Entity 142
Entity 148
Entity 154
Entity 160
Entity 166
Entity 172
Entity 178
Entity 184
Entity 190
Entity 143
Entity 149
Entity 155
Entity 161
Entity 167
Entity 173
Entity 179
Entity 185
Entity 191
Entity 144
Entity 150
Entity 156
Entity 162
Entity 168
Entity 174
Entity 180
Entity 186
Entity 192
Table 1.0 Advertising Schedule
The table presents the advertising schedule in different areas and in different times.
After 3:45 PM, the schedule will go back to the restart and start from the beginning but now
entity 1 will start at area 2 and area 1 will be broadcasted with another advertisement, this
schedule will go on a cycle endlessly. This schedule will satisfy the 3 pop-ups of
advertisements by all the clients.
D. Production Schedule
Netbox is operating with a maximum capacity of only 15,000 users because of the
limitations of the internet speed. If maximum capacity is reach during operations, additional
access points will be installed adding increments of 250 users per installation. The routers
have currently a maximum capacity of 100 users per single router, totaling to a maximum
capacity of 30,500. The proponents decided to keep a 2:3 ratio of internet capacity to router
capacity, this is so that users can easily gain access to the routers and maintaining an optimal
speed of the internet achieving the goal of high speed internet and accessibility. At the current
capacity of the routers, no additional routers are needed unless maximum capacity of the
internet is met and additional access points are added and such it reached a capacity of 22,500
users at this point additional routers are needed to accommodate new users and keeping the
quality of service to our users.
Internet Capacity
Current Capacity
Increments of additional units
Routers Capacity
5,000
30,500
250
100
Table 2.0 Capacity and Increments of additional units
27
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Software Development
All the applications and software’s needed for the project is existing and can be
downloaded for free online. The problem arises when integrating all of the needed
applications and software’s into one operating system. A software needs to be developed to
make a system for Netbox. G2 Software Solutions located on San Francisco District,
Pagadian City have testified that a program can be developed and programed for a cost of
PHP 500,000.
Government Requirements
The city government allows private entities or individuals to place objects on posts in
the city, provided that a monthly fee of P5 per placement is paid to ZAMSURECO. This
allows the router to be placed on posts located in the city. An annual payment schedule is
provided:
Numbers of Routers
Annual Fee
Total Annual Cost
305
P 60
P 18,300
Table 2.1 Router placement fee
E. Plant Location and Layout
Figure 3.0 Router and Vendo Machines layout
28
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The grid is the layout of the routers, placing them in designated places. Each colored
dot represents a router. The routers are place 100 meters apart from each other. This
placement will put the users within 50 meters of the nearest router, achieving the goal of
accessibility and convenient access. The routers will be placed on poles or high grounds to
prevent any structure to obstructing the signal.
The dots are colored in six different colors. Each color represents an area, namely the
following:
Color/Area
Coverage
Area 1- Red
Santo Nino, Upper Balangasan
Area 2- Blue
Upper Gatas, San Jose
Area 3- Yellow
Santa Maria, Tuburan
Area 4- Green
Balangasan, Dumagoc, West Santa Lucia
Area 5- Orange
Santa Lucia, Gatas
Area 6- Pink
San Francisco, Tuburan, Port area
Table 3.0 Area and Coverage
The advertisements will be broadcasted on this areas base on a planned schedule. The
areas will be broadcasted with different advertisements to maximize the capacity of clients
Netbox can accommodate. The users will be broadcasted based on routers the users are
connected to, users who are connected to routers on area 1 wil be broadcasted advertisements
intended for area 1, and the same to area 2, 3, 4, 5 and 6.
The white dots are the places where the Vendo machines will be installed. The Vendo
machines are places so that each barangay covered by Netbox will be placed with Vendo
machine to achieve the goal of accessibility. This Vendo machines will also be access points
on which internet is directly connected from the internet service provider.
29
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3D View of Office
Figure 3.1 Front View with Measurement
Figure 3.2 Bird’s eye view
30
‘
Figure 3.3 Layout with measurement
Figure 3.4 Designated areas
31
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Figure 3.5 Office location
The Front office will serve as the façade of Netbox, this place where clients and users
can inquire and acquire the services of Netbox. The front office will be located at J. Zulueta
St. near Chamber School, Dao District, Pagadian City. The front office will house 4
personnel: Manager, Treasurer, and Head Technician and customer relations personnel.
The Central network will only be a single room with a server and a single computer
inside. The central network will be located at the back of the Front Office, and this room will
be air conditioned to maintain a cool environment for the equipment’s to work properly.
32
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Description
Amount
Total
1. Foundation
Cement
₱11,280.00
Sand
1,679.30
Gravel
3,358.60
₱16,317.90
2. Masonry
CBH(4inch)
Cement
₱29,070.00
26,160.00
Sand
4,165.00
Steel Bars(10mm*6m)
9,460.00
68,855.00
₱150,000.00
150,000.00
3. Roofing System
Purlins, Bolts, Steel Frame and other Accessories
4. Flooring
Cement for Mortar
Tiles
₱4,800.00
150,000.00
154,800.00
₱10,000.00
10,000.00
₱50,000.00
50,000.00
5. Painting
Paint (4 gal)
6. Labor
Material Handling and Labor
Overall Cost
Contingency Consideration in work (15%)
Total Est. Cost
₱449,972.00
67,495.00
₱517,468.00
Table 3.1 Estimated building cost
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F. PLANT & MACHINERIES EQUIPMENT
1. Vendo Machines
a.
Name
Raspberry Pi 3 model B+
Price
₱ 2,499.00
Seller
Argon Gadget Shop
Quantity
20pcs.
Required
Function
Will serve as the computer for
the Vendo machines.
b.
Name
Universal Coin slot
Price
₱ 750.00
Seller
Pc Mock
Quantity
20pcs.
Required
Function
Coin slot
c.
Name
LCD Touch Screen
Price
₱ 3,650.00
Seller
RS Philippines
Size
7 inches
Quantity
20pcs.
Required
Function
User interface touch pad.
34
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d.
Name
Receipt Printer
Price
₱ 1,169.00
Seller
POS Pro
Quantity
20pcs.
Required
Function
e.
Prints code In receipts
Name:
Vendo Machine Frame
Price
₱ 1,500.00
Seller
Shenyang Cami Tech
Quantity
20pcs
Required
Function
To house the Vendo
machine.
2. ROUTERS
a.
Name
Open-Mesh OM2P-HS
Price
₱ 6,400.00
Seller
Aits Technology
Quantity
305pcs.
Required
Function
Routers for the Mesh Network
35
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b
Name
TP-Link TL-ANT2408CL
Price
₱ 600.00
Seller
Common Prime
Quantity
305pcs.
Required
Function
To receive the signal from
users.
c.
Name
GD-8017 Solar Kit
Price
₱ 500.00
Seller
Hetech
Quantity
305pcs.
Required
Function
To provide power to the
routers.
d.
Name
Outdoor Enclosure
Price
₱ 600.00
Seller
Data Alliance
Quantity Required
305pcs.
Function
To protect the router
from environmental
factors
36
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3. Server Room
a.
Name
Intel Xeon E3-1220
Price
₱ 12, 999.00
Seller
IT World
Function
Processor
b.
c.
Name
Asrock H61M-VG4
Price
₱ 3,200.00
Seller
All Digital Ph
Function
Motherboard
Name
Kingston Hyper X 8GB x 2
Price
₱ 7,640.00
Seller
Rad101 Tech
Function
Random Access Memory
37
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d
e.
Name
Aerocool Rave 80+ 500 W
Price
₱ 1,998.00
Seller
Vivocom Inc.
Function
Power Supply Unit
Name
Rakk Huwani Case
Price
₱ 1,998.00
Seller
Rakk PH
Function
Chassis
f.
Name
AOC1220SWD
Price
₱ 5,888.00
Seller
PCworx
Function
Monitor
38
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g.
Name
MT-K9310
Price
₱ 370.00
Seller
Wonderbuy PH
Function
Keyboard
h.
Name
Logitech B1000
Price
₱ 199.00
Seller
Tech 27
Function
Mouse
39
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Office Supplies
Office Supplies
Supplier
Price (PHP)
Long Bond paper
Crown Paper & Stationaries Supply
₱210/ ream
Short Bond paper
Crown Paper & Stationaries Supply
₱170/ ream
Ball pen
Crown Paper & Stationaries Supply
₱5.00 each
Puncher
Crown Paper & Stationaries Supply
₱50.00
Stapler
Crown Paper & Stationaries Supply
₱150.00
Whiteboard
Crown Paper & Stationaries Supply
₱450.00
Whiteboard Marker
Crown Paper & Stationaries Supply
₱45.00
Long Folder
Crown Paper & Stationaries Supply
₱7.75
Short Folder
Crown Paper & Stationaries Supply
₱7.00 00
Printer Ink
Crown Paper & Stationaries Supply
₱334.00
Scissors
Crown Paper & Stationaries Supply
₱225.00
Table 4.0 Office supplies
Office Cleaning Supplies
Supplier
Prices (PHP)
Broom
Best Emporium
120.00
Mop
Best Emporium
150.00
Dust pan
Best Emporium
35.00
Trash Can
Best Emporium
90.00
Pail
Best Emporium
320.00
Table 4.1 Cleaning supplies
40
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Other Office Supplies
Supplier
Price
Florescent bulb
Lazada Philippines
₱1, 299.00/ 6 tubes
Fire extinguisher
Lazada Philippines
₱999.00 each
Table 4.2 Office supplies
Office Equipment
Supplier
Amount
Water Dispenser
Lazada Philippines
₱ 3,998.00
Air Conditioner
Lazada Philippines
₱8,000.00
Printer
Lazada Philippines
₱5,998.00
Table 4.3 Office Equipment
Office Furniture and Fixtures
Supplier
Price
Front Desk table
Lazada Philippines
₱4,399.00
Chairs
Lazada Philippines
₱320.00
Employee wide table
Lazada Philippines
₱10,000.00
Wide table divider
Lazada Philippines
₱1,500.00
Managers Table
Lazada Philippines
₱5,250.00
Sofa chair
Lazada Philippines
₱5,000.00
Computer Table
Lazada Philippines
₱1,000.00
Table 4.4 Furniture and Fixture
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G. UTILITIES
Netbox is a service entity. The service process and managing of the business use
different utilities:
Electricity. Used in the operations of the entity, in its service process and administration. The
following tables show the electricity cost consumed by the utilities used in the office and
Vendo machines. The routers are solar powered and they do not require electricity.
Equipment
Unit(s)
Electricity
Consumption(
W)
Hours
Days per
year used
Power(K
WH/yr)
Price per
KWH
Annual Cost
PC with
Monitor
4
200
8
313
2,003.20
₱10.7837
₱ 21,601.91
Air
Conditioning
2
510
8
313
2,554.08
₱10.7837
27,542.43
Water
Dispenser
1
90
8
313
225.36
₱10.7837
2,430.21
Printer
1
175
8
313
438.20
₱10.7837
4,725.42
Server
Computer
1
500
24
365
4,380.00
₱10.7837
47,232.61
Vendo
Machines
20
120
24
365
21,024.0
0
₱10.7837
226,716.51
Total
₱330,249.09
Table 5.0 Equipment electricity consumption
Internet Services. For the access points
Access points
INTERNET
Monthly Cost
₱ 20, 000
Quantity
20
Annual Cost
₱4,800,000
Quantity
305
Annual Cost
₱18,300
Table 5.1 Internet expenditure
Router placement fees
Router
Monthly Fee
₱5
42
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Table 5.2 Placement expenditure
Water
Department
No.of
Water
personnel consumpti
Total
Monthly
Commercial
Minimum
consumption
Consumption
Rate
Charge
233.00
₱225.00
on l/ day
Office
5
(cu. m)
3
15
0.45
Table 5.3 Water consumption
H. Service Cost Requirements
Depreciation
Equipment’s used are subject to deprecation and is in need of adjustments per year.
Equipment
Cost
Salvage
Value
Quantity
Useful Life
Annual
Depreciation
Selling and Administration
Building
₱517,468.00
0
1
20yrs
₱25,873.40
PC with Monitor
₱14,290.00
₱2,000.00
4
5yrs
9,832.00
Air Conditioner
₱8,000.00
0
2
15yrs
1,067.00
Car
₱100,000.00
0
1
5yrs
20,000.00
Total
₱56,772.00
Service Operations
Vendo Machine
₱10,068.00
0
20
7yrs
₱28,765.71
Routers
₱8,100.00
0
305
15yrs
164,700.00
Server Computer
₱33,723.00
₱5,000.00
1
5yrs
5,744.00
Total
₱199,209.71
Table 6.0 Equipment depreciation
Direct Materials
Receipt
Price per Roll
Receipt per Roll
Direct Material/User
15 PHP
429
0.02
Table 6.1 Materials Expenditure
43
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Overhead
Based on 5,000 capacity per day.
Overhead
Total
Per user
Electricity
₱136,974.50
Depreciation
₱99,604.86
Internet Fee
₱3,600,000.00
Vendo Rent
₱120,000.00
Router Placement Fee
₱152,500.00
Amortization
₱25,000.00
Maintenance
₱50,000.00
0.07
0.05
1.76
0.07
0.01
0.01
0.02
Total
2.01
Table 6.2 Overhead expenditure in Individual user
Based on 192 capacity per week
Electricity
₱136,974.50
Depreciation
₱99,604.86
Internet Fee
₱1,200,000.00
Vendo Rent
₱120,000.00
Router Placement Fee
₱152,500.00
Amortization
₱25,000.00
Maintenance
Total
₱50,000.00
13.27
10.81
116.26
13.02
0.99
2.71
4.84
165.00
Table 6.3 Overhead expenditure in advertising client
Price cost
Direct Material
Overhead
Electricity
Individual User
₱0.02
0.07
Total
Advertising client
3.09
Total
13.27
44
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Depreciation
Internet Fee
Vendo Rent
Router
Placement Fee
Amortization
Maintenance
0.05
1.76
0.07
10.81
116.26
13.02
0.01
0.01
0.99
2.71
0.02
2.01
4.84
₱165
Mark-up
Taxable Price
(VAT)
VAT Amount
Price Including
Tax
2.46
102.86
4.46
267.86
.54
32.14
₱5.00
₱300.00
Table 6.4 Price costing
I. Waste Disposal
Waste management is collection, transportation, and disposal of garbage, sewage and
other waste products. The Vendo machines of Netbox will print out receipts to the users. And
once used it is usually thrown right away. And in order to properly dispose of the garbage,
garbage cans will be placed beside all Vendo machines.
J. Pre-Operation Activities
Step 1 Secure Permit from City Government
A permit for the placement of routers in public poles and areas must be first secured
from the city government. A letter addressed to the City Mayor must sent asking permission
for the placing of the routers, after the said letter is approved it must be forwarded to the City
Administrator to be signed by Mr, Lauro Mendoza, after it a Permit can be secured from the
Permits and License Division after payment to the City Treasurer.
Step 2 Assembling the Router Packs
The antennas are attached to the routers. The power cord of the router is plug in then
the router is place inside the enclosure. The solar panel is then screwed at the top of the
enclosure.
45
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Step 3 Placing the Routers in the Electric Post
Each of the assembled routers is placed 1 foot above the transformer and tightly bolts
in the electric post.
Figure 4.0 Routers Placement
Step 4 Assembling the Vendo Machine
Figure 4.1 assembling the board of the Vendo Machine
The assembled board is then placed inside the machine frame. Then the Touchpad
display is installed on the frame and connected to the board. Paint designs after.
Step 5 Installations of Vendo Machines and Access Point
The Vendo machines will be installed throughout the city to provide easy access to
Netbox. The assembled Vendo machines will be placed on designated areas. The Vendo
machines will be secured by chains and bolts. The Ethernet from the ISP will be connected to
the Vendo machine to enable it to gain access to the network. Routers themselves don’t
46
‘
provide internet they must be able to connect to an access point to be able to provide internet
to users. Access points are wired internet connections provided by the internet service
provided. They are installed on the Vendo machine so the access point will be powered and
easy access for maintenance. They are to be placed so that the routers will be able to reach an
access points within 3 bounce from a single router to another
Step 6 Setting up the Routers
The mesh routers are set up on high places like poles and high buildings. They are
placed 50 meters away from the nearest connecting router, this is because laptops
Smartphones have an effective range of 100 meters with a clear line of sight. Placing routers
nearer than the optimal range will give users a convenient and stable connection. Routers will
be mounted on to poles and walls using railings and bolts. The power source of the routers is
12V batteries that will be Solar powered. The routers will be encased by an outdoor weather
case to protect the routers from environmental factors.
Step 7 Setup Ado and Passpoint Software
This software will be installed on the Vendo Machines and routers. Ado is the
software that will produce the unique code and control the time users can connect. While
Passpoint will sync all the unique codes from different access points so that whenever a user
changes location and his current routers is out of range, his gadget can automatically connect
to the next nearest router.
Step 8 Setting up The Central Network
A central network base will be establish, in order to monitor and manage the mesh
network. A powerful computer with high process speed shall be the server for the mesh
network. Software called Mesh Manager shall be installed on the central network, this
software will receive the data from the access points and pass it to other access points in
order to sync all the data so that users can connect to different routers in different areas in the
city.
47
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Step 9 Software Integration
The software is installed on the mesh network to sync all the routers. The software is
responsible for the broadcasting of advertisements and the syncing of all unique codes in all
routers, so users can connect easily.
Figure 4.2 Pre-operating process
48
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Conclusion of Technical Study
The Project is feasible in terms of technical aspect. The technology needed for this
project is existing and available. The mesh network together with its other components is
available in the market and can easily purchase. Through time the system will be increasing
capacity little by little until the whole city will be covered and can lead of for the extension to
other places. The system needs maintenance to preserve its performance in order to make the
customer satisfied. More satisfied customer, more profit.
49
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Chapter IV
Management Study
A. Business Organization
Type of Business
Netbox being a service oriented entity focuses on the quality of service it provides to
its customers. Netbox will be a private corporation, to be incorporated by Ms. Cyden R.
Clavero, Mr. Nico L. Durangparang, Mr. Carl Joseph. Fuerzas, Mr. Arman T. Tingson and
Ms. Roan Mae O. Uy, all are residents and citizens of the Philippines.
At the beginning 19,455 common stock are to be issued divided equally among the
incorporators with P240 Par Value per share. Cash dividends of P150 per share for the first 3
years of operation and P175 per share for the succeeding years will be declared at every of
the fiscal year.
On the long run, in the relevant future probably 5 years depending on the result of the
operations, the company needs to make decision of either to expand their business and
become independent from external internet service providers or to sell the business to bigger
companies.
B. Organizational Structure
Board of Directors
Managing Director
Head
Technician
Treasurer
Secretary/Front Desk
personnel
Assistant
technician
Figure 1 Organizational Structure
50
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C. Capital Requirement
The incorporators are to invest equally in the corporation
Incorporators
Initial Investment
Clavero, Cyden
₱ 933,840.00
Durangparang, Nico
₱ 933,840.00
Fuerzas, Carl Joseph
₱ 933,840.00
Tingson, Arman
₱ 933,840.00
Uy, Roan Mae
₱ 933,840.00
Numbers of Shares
Total Investment
3891
3891
3891
3891
3891
₱ 933,840.00
₱ 933,840.00
₱ 933,840.00
₱ 933,840.00
₱ 933,840.00
₱ 4,669,200.00
Total
Table 4.1 Initial Investment
D. Staffing Requirements
Manpower Requirement and Job Description:
a) Head Technician (1)
He/She will be the one to perform needed repairs and maintenance on the server and
the routers, he will also collect the coins from the vendo boxes in the city. Requirements are:
1. Must be a graduate of any 4 year computer related course.(eg. Information technology,
Computer Science)
2. Must be knowledgeable in the field of Wireless Fidelity technology.
3. At least 20-35 years old. (NO RESTRICTION AS TO GENDER)
4. Must know how to drive a car or a motorcycle
5. Applicants must be willing to work full time
b) Assistant Technician (1)
He/She will assist the Head Technician and he is under the command of the Head of
technician.
51
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1. Must at least be a 2nd year student in any computer related course. (eg. Information
technology, Computer Science)
2. Must be knowledgeable in the field of Wireless Fidelity technology.
3. At least 20-35 years old. (NO RESTRICTION AS TO GENDER)
4. Must know how to drive a car or a motorcycle
5. Applicants must be willing to work full time
c) Treasurer (1)
The one tasked to manage the books of the company and keep records.
1. Must be a holder of a Bachelor’s Degree in Accountancy.
2. At least 1 year of working experience in any finance related job.
3. At least 20-35 years old. (NO RESTRICTION AS TO GENDER
4. Applicants must be willing to work full time
d) Secretary/ Front Desk personnel (1)
He/She will be the one to accommodate walk-in customers and clients. To make and keep
any documents necessary for the business and to entertain any complaints from users and
clients.
1. Must be a College Graduate of any course.
2. At least 1 year of working experience in any finance related job.
3. At least 20-35 years old. (NO RESTRICTION AS TO GENDER
4. Applicants must be willing to work full time.
Recruitment and Training Program
Netbox being a business that relies on its quality of service emphasizes the skills and
knowledge of the head technician to be able to produce the best experience for the users. The
technician must be always updated on the latest technologies regarding the service of
providing internet. The technician shall be sent to seminars and training programs necessary
for the improvement of the business.
52
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E. Management and Policies Regulation
The management will be strict on timeliness of the employees. They must be on time on their
job and their duties. Absences will be dealt with penalties by deduction in their salary if not
for a valid reason. Efficiency and effectiveness of their duties is upmost importance in their
day to day routine in the office.
F. Compensation and Other Benefits
General and Administrative
Position
Basic Monthly Pay
13th month pay
Total Annual
Head Technician
₱ 20,000.00
₱ 20,000.00
₱ 260,000
Assistant Technician
₱ 15,000.00
₱ 15,000.00
₱ 195,000
Accountant
₱ 18,000.00
₱ 18,000.00
₱ 234,000
Secretary
₱ 18,000.00
₱ 18,000.00
₱ 234,000
Table 4.2 Compensation
Total Benefits for employees
SSS premium Payable
4,834.80
Philhealth Payable
1,010.63
Pag-ibig Payable
735.00
53
‘
G. Gantt Chart
Week
1
Activity Month
January
2
3
4
1
February
2
3
4
1
2
3
March
1. Securing Permits and Licenses
2. Hiring of Staff and Personnel’s
3. Application to the Internet Service Provider
4. Purchase of Equipment and Parts
5. Assembling of Router Packs
6. Planning of Router Placements
7. Purchase Furniture’s and Equipment for Office
8. Purchase Equipment for Central Network
9. Assembling of Vendo Machines
10. Installing of Vendo Machines and Access Points
11. Installation of Routers
12. Moving to Office
13. Advertisements and Promotions
14. Setup Ado and Passpoint Software
15. Assembly and Setup of Central Network
16. Integrating the whole mesh network
17. Run tests
18. Start of Operation
54
‘
Conclusion to the technical study
The business to be formed is a private corporation with 5 incorporators. Cash dividends
amounting to P150 per share and P175 per share for the succeeding years will be declared at
every end of the fiscal share. The business will employ a total of 4 employees namely the
Head Technician, Assistant technician, Treasurer and a Secretary. They are to be given
bountiful salary to justify their performance and to compensate their commitment to the
vision of the business.
55
‘
Chapter V
Financial Study
A. Major Assumptions
1. Income Statement
- The method of reporting for the income statement is absorption costing.
2. Market Share
-The market share is based on the capacity of plant.
3. Selling Price
- 5 PHP price is set for internet users based on the survey conducted.
- 300 PHP price is set for advertising clients based on the survey conducted. Price is
increased annually by 6% based on inflation.
4. Plant Capacity
- User capacity is 5000 based on network limit of the access points. Capacity is increased by
increments of 250 users by year.
- Client capacity is 192 based on time limit of advertising schedule.
5. Cost of Service
Direct Materials
- The method used to account for materials is periodic inventory system
Overhead
- The basis for computation of overhead is the annual estimated cost of service
attributable to the operation.
6. VAT
Since the projected annual gross sales of our business are expected to be more than the VAT
threshold of P3, 000,000, this means that our business is required to register under VAT
system. Under this we are engaged into variable sales which means that we are required to
collect 12% value added tax on our sales from our users and clients and that the same time
avail Input VAT and deduct the same from the Output VAT to get the VAT payable.
7. Inflation Rate
- The inflation rate used is 6%. This is based on the general average rate in the
country.
56
‘
8. Salability of service
- The salability of the internet service is 96.27% based on the results of the survey
who answered YES on both questions of “Are they connecting to the internet” and
“Are you willing to connect a city wide Wi-Fi”
-Based on our capacity of 192 clients dividing it to the total projected demand, our
prospected market share is 4.89%.
9. Salaries and Wages
- Working Days: 26 days
- The settlement of the salaries will be every 15 days, which is every 15th and 30th day
of the month.
10, Depreciation and Amortization
- The method of depreciation to be used for all depreciable item of the entity is the
Straight-line method.
11. Light and Water
- Light and water will be paid monthly and will be accounted as one line itemUTILITIES EXPENSE together with other utilities
12. Office Supplies
- This will be purchased on cash. All office supplies are expected to be fully consume
as of the end of the year.
13. Provisions for Income Tax
- Provisions for Corporate Tax will be 30% of the annual net income before tax.
- Corporate taxes are paid every 15th day of April after each accounting period.
14. Cash Revenue
- All internet users will be cash sales
15. Accounts Receivables
- All clients will be subscriptions of 1 year payable every 15th of the month.
16. Allowance for Bad Debts
- Bad debts are assumed to 5% of accounts receivable ending balance.
17. Employee Benefits
- SSS, Philhealth and Pag-ibig Premium payable are payable monthly.
57
‘
18. Cash in Bank
-Cash on hand is fixed at 300,000 to meet monthly expenses, the balance is deposited
in the bank
19. Cash Dividends
-Cash dividends of P150 per share for the first of 3 years of operation and P175 per
share for the succeeding years will be declared at every end of fiscal year.
B. Project Cost Assumptions
Total
Land
Purchase Price
Legal Fees
Registration Fees
80,000.00
15,000.00
5,000.00
100,000.00
16,317.00
68,855.00
150,000.00
154,800.00
10,000.00
50,000.00
67,495.80
517,467.80
2,501,000.00
201,360.00
90,883.00
16,000.00
3,999.00
5,998.00
100,000.00
2,819,240.00
100,000.00
Front Desk table
Chairs
Employee wide table
Wide table divider
Managers Table
Sofa chair
Server Computer Table
4,399.00
1,920.00
10,000.00
1,500.00
5,250.00
5,000.00
1,000.00
29,069.00
Software Development
500,000.00
500,000.00
Internet Deposit
Router Placement deposit
200,000.00
20,000.00
220,000.00
Cash on Hand
Unused Office Supplies
300,000.00
7,273.20
307,273.20
Building
Foundation
Masonry
Roofing System
Flooring
Painting
Labor
Contingency Works
Equipment
Motor Vehicle
Office Furniture and Fixtures
Routers
Vendo Machine
Computers
Air Conditioner
Water Dispenser
Printer
Car
Intangible Asset
Other Non-Current Assets
Initial Working Capital
Pre-operating Expenses
58
‘
Feasibility Study Cost
Business Permit
Registration Fee with SEC
Initial Advertising
Recruitment and Training
6,150.00
5,000.00
15,000.00
20,000.00
30,000.00
Total Cost
76,150.00
4,669,200.00
Cash on Hand:
Payment for Internet
200,000
Payment for Salary
71,000
Payment of Utilities expense
4,920
Contingent Expenses
24,080
Total
P300,000
C. Source of Financing
Incorporators
Initial Investment
Clavero, Cyden
₱ 933,840.00
Durangparang, Nico
₱ 933,840.00
Fuerzas, Carl Joseph
₱ 933,840.00
Tingson, Arman
₱ 933,840.00
Uy, Roan Mae
₱ 933,840.00
Numbers of Shares
3891
3891
3891
3891
3891
Total Investment
₱ 933,840.00
₱ 933,840.00
₱ 933,840.00
₱ 933,840.00
₱ 933,840.00
₱ 4,669,200.00
Total
Table 2. Source of Financing
The capital requirement will mostly be provided by the incorporators. The
incorporators are to contribute equal share in the capital.
59
‘
D. Financial Statements
Sales
Cost of Service
Gross Profit
Less: Expenses
Pre-operating expenses
General and Administration Expenses
Bad Debts
Permits and Licenses
Salaries and Wages
Depreciation expense
Office Supplies expense
Utilities Expense
SSS Premium Expense
Philhealth Premium Expense
PAG-IBIG Premium Expense
Insurance Expense
Total General and Administration Expenses
Selling expenses
Advertising Expense
Total Selling expense
Total Expenses
Net Profit before tax
Tax
Net Profit after tax
Netbox Co.
Statement of Comprehensive Income
For the years ended 31 December 2020-2024
Note 2020
2021
2022
10
10,615,892.86
11,171,373.21
11,735,740.43
11
5,184,081.31
5,691,248.72
5,942,475.25
5,431,811.55
5,480,124.50
5,793,265.18
2024
12,893,300.27
6,448,827.05
6,444,473.21
12
76,150.00
13
11,520.00
25,000.00
923,000.00
62,585.87
7,274.00
50,468.75
58,017.60
12,127.50
8,820.00
18,000.00
1,176,813.72
691.20
25,000.00
923,000.00
62,585.87
7,492.22
51,982.81
58,017.60
12,127.50
8,820.00
19,080.00
1,168,797.20
732.67
25,000.00
923,000.00
62,585.87
7,716.99
53,542.30
58,017.60
12,127.50
8,820.00
20,224.80
1,171,767.72
776.63
25,000.00
923,000.00
62,585.87
7,948.50
55,148.57
58,017.60
12,127.50
8,820.00
21,438.29
1,174,862.95
823.23
25,000.00
923,000.00
62,585.87
8,186.95
56,803.02
58,017.60
12,127.50
8,820.00
22,724.59
1,178,088.76
20,000.00
20,000.00
1,196,813.72
4,234,997.83
1,270,499.35
20,000.00
20,000.00
1,188,797.20
4,291,327.30
1,287,398.19
20,000.00
20,000.00
1,191,767.72
4,601,497.46
1,380,449.24
20,000.00
20,000.00
1,194,862.95
4,919,688.88
1,475,906.67
20,000.00
20,000.00
1,198,088.76
5,246,384.46
1,573,915.34
2,964,498.48
3,003,929.11
3,221,048.22
3,443,782.22
3,672,469.12
14
15
16
17
18
19
20
21
21
30%
2023
12,309,527.71
6,194,975.88
6,114,551.83
60
‘
Netbox Co.
Statement of Financial Position
as of 31 December 2020-2024
Note
Current Assets
Cash
Trade and other Receivables
Prepaid Expenses
3
4
5
Materials Inventory
11
Year 0
2020
2022
2023
2024
1,961,250.65
218,880.00
-
2,352,369.38
232,012.80
-
3,046,763.46
245,933.57
-
3,482,179.19
260,689.58
-
4,151,053.82
276,330.96
-
14,454.30
26,059.88
34,816.75
40,724.90
43,784.34
383,424.00
2,194,584.95
2,610,442.05
3,327,513.78
3,783,593.67
4,471,169.12
3,565,776.00
500,000.00
220,000.00
3,303,980.09
450,000.00
220,000.00
3,042,184.18
400,000.00
220,000.00
2,780,388.27
350,000.00
220,000.00
2,518,592.36
300,000.00
220,000.00
2,256,796.45
250,000.00
220,000.00
Total Non-current assets
4,285,776.00
3,973,980.09
3,662,184.18
3,350,388.27
3,038,592.36
2,726,796.45
TOTAL ASSETS
4,669,200.00
6,168,565.37
6,272,626.90
6,677,903.05
6,822,187.36
7,197,967.24
-
1,453,116.89
1,471,499.31
1,573,977.23
1,679,104.33
1,787,040.09
-
1,453,116.89
1,471,499.31
1,573,977.23
1,679,104.33
1,787,040.09
Total Current Assets
Non-Current Assets
Property, Plant and Equipment
Intangible Asset
Other Non-Current Assets
Current Liabilities
Trade and other payables
Total Current Liabilities
6
7
8
8
300,000.00
83,424.00
2021
-
Shareholder's Equity
Common Stock, P240 Par
Retained Earnings
4,669,200.00
4,669,200.00
46,248.48
4,669,200.00
131,927.59
4,669,200.00
434,725.81
4,669,200.00
473,883.03
4,669,200.00
741,727.15
Total Shareholder's Equity
4,669,200.00
4,715,448.48
4,801,127.59
5,103,925.81
5,143,083.03
5,410,927.15
TOTAL LIABILITIES AND EQUITY
4,669,200.00
6,168,565.37
6,272,626.90
6,677,903.05
6,822,187.36
7,197,967.24
61
‘
Netbox Co.
Statement of Cash Flows
Year ended 31 December 2020-2024
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
2,964,498.48
3,003,929.11
3,221,048.22
3,443,782.22
3,672,469.12
Amortization
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
Depreciation
261,795.58
261,795.58
261,795.58
261,795.58
261,795.58
Net Cash Inflow
3,276,294.06
3,315,724.69
3,532,843.80
3,755,577.80
3,984,264.70
Cash flows from operating activities
Net Income after tax
-
Decrease(Increase) in receivables
-
(218,880.00)
(13,132.80)
(13,920.77)
(14,756.01)
(15,641.37)
Decrease(Increase) in Materials Inventory
-
(14,454.30)
(11,605.58)
(8,756.87)
(5,908.15)
(3,059.44)
83,424.00
-
-
-
1,270,499.35
16,898.84
93,051.05
95,457.43
98,008.67
176,037.11
1,483.58
9,426.88
9,669.67
9,927.08
Increase(Decrease) in SSS premium payable
4,834.80
-
-
-
-
Increase(Decrease) Philhealth Payable
1,010.63
-
-
-
-
Increase(Decrease) PAG-IBIG Payable
735.00
-
-
-
-
Decrease(Increase) in prepaid expenses
(83,424.00)
Increase(Decrease) in income tax payable
Increase(Decrease) in VAT tax payable
-
-
Net cash provided by operating activities
62
‘
(83,424.00)
4,579,500.65
3,309,368.73
3,612,644.09
3,840,040.73
4,073,499.64
Cash flows from investing activities
Purchase of Land
100,000.00
-
-
-
-
-
Construction of Building
517,468.00
-
-
-
-
-
Purchase of Intangible Asset
500,000.00
-
-
-
-
-
Purchase of Motor Vehicle
100,000.00
-
-
-
-
-
Purchase of Equipment’s
2,819,239.00
-
-
-
-
-
Purchase of furniture and fixtures
29,069.00
-
-
-
-
-
Down payment for Internet
200,000.00
Down payment for Router Placement
20,000.00
Net cash used in financing activities
4,285,776.00
-
-
-
-
-
2,918,250.00
2,918,250.00
2,918,250.00
3,404,625.00
3,404,625.00
Cash flows from financing activities
Initial Investment
4,669,200.00
Dividends
-
Net cash provided by financing activities
4,669,200.00
(2,918,250.00)
(2,918,250.00)
(2,918,250.00)
(3,404,625.00)
(3,404,625.00)
Increase in cash equivalents
300,000.00
1,661,250.65
391,118.73
694,394.09
435,415.73
668,874.64
300,000.00
1,961,250.65
2,352,369.38
3,046,763.46
3,482,179.19
1,961,250.65
2,352,369.38
3,046,763.46
3,482,179.19
4,151,053.82
Add: Cash and cash equivalents- Jan 1
Cash and cash equivalents- Dec 31
300,000.00
63
‘
Netbox Co.
Statement of Shareholders' Equity
For the year ended 31 December 2020-2024
2020
Common Stock, 240 Par
Balance January 1
4,669,200.00
Retained Earnings
-
2023
Common
Stock, 240 Par
Balance January 1
4,669,200.00
Net income
2,964,498.48
Net income
Cash Dividends
(2,918,250.00)
Cash Dividends
(3,404,625.00)
4,669,200.00
46,248.48
Balance December 31
2021
Common Stock, 240 Par
Retained Earnings
2024
4,669,200.00
Common
Stock, 240 Par
Balance January 1
4,669,200.00
46,248.48
Balance January 1
4,669,200.00
Net income
3,003,929.11
Net income
Cash Dividends
(2,918,250.00)
Cash Dividends
Balance December 31
4,669,200.00
131,927.59
2022
Common Stock, 240 Par
Retained Earnings
Balance January 1
4,669,200.00
131,927.59
Net income
3,221,048.22
Cash Dividends
(2,918,250.00)
Balance December 31
4,669,200.00
434,725.81
3,443,782.22
Balance December 31
Balance December 31
Retained Earnings
473,883.03
Retained Earnings
473,883.03
3,672,469.12
(3,404,625.00)
4,669,200.00
741,727.15
434,725.81
64
‘
Notes to Financial Statements
1. Compliance with Philippine Financial Reporting Standards
The entity’s financial statements have been prepared in accordance with Philippine Financial Reporting Standards and rules and regulations of
the Philippine Securities and Exchange Commission.
The accounting policies implemented in the preparation of financial statements have been applied by the entity in a consistent basis.
2. Summary of significant accounting policies
• Measurement Basis- The financial statements are prepared on a historical cost basis
• Materials Inventories- measured at acquisition cost
• Pre-operating expenses- such costs are charge to expense in the year incurred
• Property, plant and equipment- PPE are recorded at cost
-Depreciation- the depreciation used for all depreciable items is the straight line method.
• Employee benefits- the entity maintains a defined contribution plan which provides for benefits including Pag-ibig, SSS, and Philhealth covering all regular employees.
•Income Taxes- income tax on the profit for the year comprises current tax only. Current income tax is the expected tax payable on the
taxable income for the year using tax rates enacted or substantially enacted as of the reporting date and any adjustment to tax payable in
Respect to previous years
65
‘
Note 3- Cash
Year 0
Cash on Hand
300,000.00
Cash in Bank
-
Total
300,000.00
Year 1
Year 2
300,000.00
Year 3
Year 4
Year 5
300,000.00
300,000.00
300,000.00
300,000.00
1,661,250.65
2,052,369.38
2,746,763.46
3,182,179.19
3,851,053.82
1,961,250.65
2,352,369.38
3,046,763.46
3,482,179.19
4,151,053.82
Note 4- Trade and other receivables (Refer to Financial Schedule- Accounts
Receivable)
Year 0
Accounts Receivables
Year 1
Year 2
Year 3
Year 4
Year 5
-
230,400.00
244,224.00
258,877.44
274,410.09
290,874.69
Less: Allowance for bad debts -
11,520.00
12,211.20
12,943.87
13,720.50
14,543.73
218,880.00
232,012.80
245,933.57
260,689.58
276,330.96
Total
Note 5- Prepaid Expenses
-
Year 0
Pre-operating expenses
76,150.00
Unused Office Supplies
7,274.00
Total
83,424.00
Year 1
Year 2
Year 3
Year 4
Year 5
-
-
-
-
-
-
-
-
-
-
66
‘
Note 6- Property, plant and Equipment
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Land
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
Building
517,468.00
517,468.00
517,468.00
517,468.00
517,468.00
517,468.00
Machinery and Equipment
2,819,239.00
2,819,239.00
2,819,239.00
Office Furniture and Fixtures 29,069.00
2,819,239.00
29,069.00
2,819,239.00
2,819,239.00
29,069.00
29,069.00
29,069.00
29,069.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
3,565,776.00
3,565,776.00
3,565,776.00
3,565,776.00
523,591.82
785,387.73
1,047,183.64
1,308,979.55
3,042,184.18
2,780,388.27
2,518,592.36
2,256,796.45
Motor Vehicle
100,000.00
Total
3,565,776.00
Accumulated Depreciation
-
Carrying Amount
Accumulated Depreciation
3,565,776.00
Building
-
25,873.40
51,746.80
Machinery and Equipment
-
210,108.71
420,217.42
Office Furniture and Fixtures -
5,813.80
11,627.60
17,441.40
23,255.20
29,069.00
-
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
-
261,795.91
523,591.82
Motor Vehicle
Total Accumulated
Depreciation
3,565,776.00
261,795.91
3,303,980.09
77,620.20
630,326.13
785,387.73
103,493.60
129,367.00
840,434.84
1,050,543.55
1,047,183.64
1,308,979.55
67
‘
Note 7- Intangible Asset
Year 0
Software
Accumulated Amortization
500,000.00
Carrying Amount
500,000.00
Note 8- Other Non-Current
Assets
Internet Down payment
Router Placement Down payment
Total
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
500,000.00
500,000.00
500,000.00
500,000.00
500,000.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
450,000.00
400,000.00
350,000.00
300,000.00
250,000.00
Year 1
Year 2
Year 3
Year 4
Year 5
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
200,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
220,000.00
220,000.00
220,000.00
220,000.00
220,000.00
220,000.00
Year 2
1,287,398.19
Year 3
1,380,449.24
Year 4
1,475,906.67
Year 5
1,573,915.34
177,520.69
186,947.57
4,834.80
4,834.80
4,834.80
4,834.80
4,834.80
1,010.63
1,010.63
1,010.63
1,010.63
1,010.63
735
735
735
735
735
1,453,116.89
1,471,499.31
1,573,977.23
1,679,104.33
1,787,040.09
Note 9- Trade and other payables (Refer to Financial Schedule- Tax Payable)
Year 0
Income Tax Payable
Year 1
1,270,499.35
176,037.11
Vat Payable
SSS premium Payable
Philhealth Payable
Pag-ibig Payable
Total
196,617.24
206,544.32
68
‘
Note 10- Sales
Total Sales for Internet Users
Year
Annual Users
2020
2021
2022
2023
2024
Year
Price
1,825,000.00
5.00
9,125,000.00
1,916,250.00
5.00
9,581,250.00
2,007,500.00
5.00
10,037,500.00
2,098,750.00
5.00
10,493,750.00
2,190,000.00
5.00
10,950,000.00
Annual Clients
2020
2021
2022
2023
2024
Year
Price
Total Sales for Clients
9,216.00
9,216.00
300.00
318.00
2,764,800.00
2,930,688.00
9,216.00
9,216.00
337.08
357.30
3,106,529.28
3,292,921.04
9,216.00
378.74
3,490,496.30
Internet Users
Clients
Total Sales Revenue
Sales Exclusive of VAT
2020
9,125,000.00
2,764,800.00
11,889,800.00
10,615,892.86
2021
9,581,250.00
2,930,688.00
12,511,938.00
11,171,373.21
2022
10,037,500.00
3,106,529.28
13,144,029.28
11,735,740.43
2023
10,493,750.00
3,292,921.04
13,786,671.04
12,309,527.71
2024
10,950,000.00
3,490,496.30
14,440,496.30
12,893,300.27
69
‘
Note 11- Cost of Service
Direct Materials- Receipt
2020
2021
2022
2023
2024
Materials Inventory, beginning
-
14,454.30
26,059.88
34,816.75
40,724.90
Add: Purchases
71,428.57
71,428.57
71,428.57
71,428.57
71,428.57
Total available for use
71,428.57
85,882.87
97,488.45
106,245.32
112,153.47
Less: Materials Inventory, end
14,454.30
26,059.88
34,816.75
40,724.90
43,784.34
Direct Materials Used
Overhead
56,974.28
59,822.99
62,671.70
65,520.42
68,369.13
Electricity
244,597.32
259,273.16
274,829.55
291,319.32
308,798.48
Depreciation
199,209.71
199,209.71
199,209.71
199,209.71
199,209.71
Internet Fee
4,285,714.29
5,224,285.71
5,451,428.57
Vendo Rent
240,000.00
240,000.00
240,000.00
240,000.00
240,000.00
Router Placement Fee
18,300.00
18,300.00
18,300.00
18,300.00
18,300.00
Amortization
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
Maintenance
89,285.71
94,642.86
100,321.43
106,340.71
112,721.16
Total Overhead
5,127,107.03
6,129,455.46
6,380,457.92
4,770,000.00
5,631,425.73
4,997,142.86
5,879,803.55
70
‘
Direct Materials
56,974.28
Overhead
5,127,107.03
5,631,425.73
Cost of Service
5,184,081.31
5,691,248.72
59,822.99
62,671.70
65,520.42
68,369.13
5,879,803.55
6,129,455.46
6,380,457.92
5,942,475.25
6,194,975.88
6,448,827.05
Note 12- Pre-operating service
Pre-operating Expenses
Feasibility Study Cost
Business Permit
Registration Fee with SEC
Initial Advertising
Recruitment and Training
6,150.00
5,000.00
15,000.00
20,000.00
30,000.00
76,150.00
Total
Note 13- Bad Debts
AFDA, beg
Add: Bad Debts
AFDA, end
76,150.00
2020
-
2021
11,520.00
2022
12,211.20
2023
12,943.87
2024
13,720.50
11,520.00
691.20
732.67
776.63
823.23
11,520.00
12,211.20
12,943.87
13,720.50
14,543.73
71
‘
Note 14- General and Administration- Salaries and Wages
2020
2021
2022
2023
2024
Head Technician
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Assistant Technician
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
Treasurer
18,000.00
18,000.00
18,000.00
18,000.00
18,000.00
Secretary
18,000.00
18,000.00
18,000.00
18,000.00
18,000.00
Total
71,000.00
71,000.00
71,000.00
71,000.00
71,000.00
Per Year
923,000.00
923,000.00
Note 15- General and AdministrationDepreciation Expense
Aircon
Building
Office Furniture and Fixtures
Office Computer
Motor Vehicle
Total
923,000.00
923,000.00
923,000.00
2020
1,066.67
25,873.40
5,813.80
9,832.00
20,000.00
2021
1,066.67
25,873.40
5,813.80
9,832.00
20,000.00
2022
1,066.67
25,873.40
5,813.80
9,832.00
20,000.00
2023
1,066.67
25,873.40
5,813.80
9,832.00
20,000.00
2024
1,066.67
25,873.40
5,813.80
9,832.00
20,000.00
62,585.87
62,585.87
62,585.87
62,585.87
62,585.87
72
‘
Note 16- Office Supplies
Expense
Office Supplies
Office Cleaning
Supplies
Total
2020
5,856.25
2021
6,031.94
2022
6,212.90
2023
6,399.28
2024
6,591.26
638.39
7,274.00
657.54
7,492.22
677.27
7,716.99
697.59
7,948.50
718.52
8,186.95
Note 17- Utilities
Expense- Gen. and
Admin
2020
Electricity
50,267.86
Water
200.89
Total
50,468.75
2021
2022
2023
2024
51,775.89
53,329.17
54,929.04
56,576.92
206.92
213.13
219.52
226.11
51,982.81
53,542.30
55,148.57
56,803.02
Note 18- SSS Premium Expense- Gen. and Admin
Employee
Head Technician
Assistant Technician
Treasurer
Secretary
Basic monthly pay
Employee
Employer
20,000.00
581.30
1,208.70
15,000.00
581.30
1,208.70
18,000.00
581.30
1,208.70
18,000.00
581.30
1,208.70
Per month
Per year
4,834.80
58,017.60
73
‘
Note 19- Philhealth Premium Expense- Gen. and Admin
Employee
Head Technician
Assistant Technician
Treasurer
Secretary
Basic monthly pay
Employee
Employer
22,500.00
309.38
309.38
15,000.00
206.25
206.25
18,000.00
247.50
247.50
18,000.00
247.50
247.50
Per month
1,010.63
Per year
Note 20- PAG-IBIG Premium Expense- Gen. and Admin
Employee
Head Technician
Assistant Technician
Treasurer
Secretary
Basic monthly pay
12,127.50
Employee
Employer
22,500.00
225.00
225.00
15,000.00
150.00
150.00
18,000.00
180.00
180.00
18,000.00
180.00
180.00
Per month
Per year
735.00
8,820.00
Note 21- Insurance Expense
Building Insurance
Monthly Payment
Annual
Payment
1,500.00
18,000.00
74
‘
Note 22- Advertising
Expense
2020
2021
2022
2023
2024
Flyers and leaflets
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
Tarpaulins
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
Total
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
Note 23- Shareholder's List
2020
2021
Clavero, Cyden
Durangparang, Nico
Fuerzas, Carl Joseph
Tingson, Arman
Uy, Roan Mae
Total Outstanding Shares
3891
3891
3891
3891
3891
19455
3891
3891
3891
3891
3891
19455
2022
Share's owned
3891
3891
3891
3891
3891
19455
2023
2024
3891
3891
3891
3891
3891
19455
3891
3891
3891
3891
3891
19455
E. Financial Schedules
Schedule 1 (Depreciation Table)
Equipment
Cost
Salvage Value
Quantity
Useful
Life
Annual Depreciation
₱517,468.00
0
1
20yrs
₱25,873.40
Selling and Administration
Building
75
‘
PC with Monitor
₱14,290.00
₱2,000.00
4
5yrs
9,832.00
Air Conditioner
₱8,000.00
0
2
15yrs
1,067.00
Office Furniture and
Fixtures
₱29069
0
1
5
₱5,813.8
Motor Vehicle
₱100,000.00
0
1
5yrs
20,000.00
Total
₱62,585.8
Service Operations
Vendo Machine
₱10,068.00
0
20
7yrs
₱28,765.71
Routers
₱8,100.00
0
305
15yrs
164,700.00
Server Computer
₱33,723.00
₱5,000.00
1
5yrs
5,744.00
Total
₱199,209.71
Schedule 2- Accounts Receivable
Accounts Receivable
Accounts Receivable, end
Allowance for doubtful accounts
Accounts Receivable, end
2020 2,764,800.00
230,400.00
11,520.00
218,880.00
2021 2,930,688.00
244,224.00
12,211.20
232,012.80
2022 3,106,529.28
258,877.44
12,943.87
245,933.57
Year
Client Sales
76
‘
2023 3,292,921.04
274,410.09
13,720.50
260,689.58
2024 3,490,496.30
290,874.69
14,543.73
276,330.96
Schedule 3- Total Tax Payable
VAT Payable
2020
2021
2022
2023
2024
VAT Output
Total Tax Payable
2020
2021
2022
2023
2024
Vat Payable
Vat Input
VAT Payable
1,273,907.14
1,340,564.79
1,408,288.85
1,477,143.33
1,547,196.03
569,758.71
630,482.03
660,498.58
690,674.37
721,018.75
176,037.11
177,520.69
186,947.57
196,617.24
206,544.32
1,270,499.35
1,287,398.19
1,380,449.24
1,475,906.67
1,573,915.34
Total tax payable
1,446,536.46
1,464,918.88
1,567,396.80
1,672,523.90
1,780,459.66
Income Tax Payable
176,037.11
177,520.69
186,947.57
196,617.24
206,544.32
Vat Input
2020
Electricity
Internet Fee
Direct Materials
Maintenance
2021
2022
2023
2024
29,351.68
31,112.78
32,979.55
34,958.32
37,055.82
514,285.71
572,400.00
599,657.14
626,914.29
654,171.43
8,571.43
8,571.43
8,571.43
8,571.43
8,571.43
13,526.54
77
‘
Utilities Expense
Office Supplies
Expense
Total
10,714.29
11,357.14
12,038.57
12,760.89
6,056.25
6,237.94
6,425.08
6,617.83
6,816.36
779.36
802.74
826.82
851.62
877.17
569,758.71
630,482.03
660,498.58
690,674.37
721,018.75
Schedule 4-Employee Benefits Contribution Payable
2020
SSS premium Payable
Philhealth Payable
Pag-ibig Payable
2021
2022
2023
2024
4,834.80
1,010.63
4,834.80
1,010.63
4,834.80
1,010.63
4,834.80
1,010.63
4,834.80
1,010.63
735.00
735.00
735.00
735.00
735.00
Schedule 5- Direct
Materials Used
Year
Annual Users
Reciept per roll
Price per roll
Materials Used
2020
2021
2022
2023
1,825,000.00
1,916,250.00
2,007,500.00
2,098,750.00
429.00
429.00
429.00
429.00
15.00
15.00
15.00
15.00
63,811.19
67,001.75
70,192.31
73,382.87
2024
2,190,000.00
429.00
15.00
76,573.43
78
‘
Financial Ratios
Horizontal Analysis
Year 0
2020
Increase(Derease)
Percentage
Current Assets
Cash
Trade and other Receivables
Prepaid Expenses
Materials Inventory
300,000.00
83,424.00
-
1,961,250.65
218,880.00
14,454.30
1,661,250.65
218,880.00
(83,424.00)
14,454.30
554%
Total Current Assets
383,424.00
2,194,584.95
1,811,160.95
472%
Non-Current Assets
Property, Plant and Equipment
3,565,776.00
3,303,980.09
(261,795.91)
-7%
Intangible Asset
Other Non-Current Assets
Total Non-current assets
500,000.00
220,000.00
4,285,776.00
450,000.00
220,000.00
3,973,980.09
(50,000.00)
(311,795.91)
-10%
0%
-7%
TOTAL ASSETS
Current Liabilities
Trade and other payables
4,669,200.00
6,168,565.04
1,499,365.04
32%
-
1,453,116.89
1,453,116.89
-
1,453,116.89
1,453,116.89
Total Current Liabilities
Shareholder's Equity
Common Stock, P240 Par
Retained Earnings
4,669,200.00
-
4,669,200.00
-
46,248.48
46,248.48
Total Shareholder's Equity
4,669,200.00
4,715,448.48
46,248.48
TOTAL LIABILITIES AND EQUITY
4,669,200.00
6,168,565.37
1,499,365.37
-100%
0%
1%
32%
79
‘
2020
Current Assets
Cash
2021
Increase(Derease)
Percentage
1,961,250.65
2,352,369.38
391,118.73
20%
218,880.00
14,454.30
232,012.80
26,059.88
13,132.80
11,605.58
6%
Total Current Assets
2,194,584.95
2,610,442.05
415,857.11
19%
Non-Current Assets
Property, Plant and Equipment
Intangible Asset
Other Non-Current Assets
Total Non-current assets
3,303,980.09
450,000.00
220,000.00
3,973,980.09
3,042,184.18
400,000.00
220,000.00
3,662,184.18
(261,795.91)
(50,000.00)
(311,795.91)
-8%
-11%
0%
-8%
TOTAL ASSETS
Current Liabilities
Trade and other payables
Total Current Liabilities
6,168,565.04
1,453,116.89
1,453,116.89
6,272,626.23
104,061.20
2%
1,471,499.31
1,471,499.31
18,382.42
18,382.42
1%
1%
Shareholder's Equity
Common Stock, P240 Par
Retained Earnings
4,669,200.00
46,248.48
4,669,200.00
131,927.59
85,679.11
0%
185%
Total Shareholder's Equity
4,715,448.48
4,801,127.59
85,679.11
2%
TOTAL LIABILITIES AND EQUITY
6,168,565.37
6,272,626.90
104,061.53
2%
Trade and other Receivables
Prepaid Expenses
Materials Inventory
80%
80
‘
2021
Current Assets
Cash
2022
Increase(Derease)
Percentage
2,352,369.38
3,046,763.46
694,394.09
30%
232,012.80
26,059.88
245,933.57
34,816.75
13,920.77
8,756.87
6%
Total Current Assets
2,610,442.05
3,327,513.78
717,071.72
27%
Non-Current Assets
Property, Plant and Equipment
Intangible Asset
Other Non-Current Assets
Total Non-current assets
3,042,184.18
400,000.00
220,000.00
3,662,184.18
2,780,388.27
350,000.00
220,000.00
3,350,388.27
(261,795.91)
(50,000.00)
(311,795.91)
-9%
-13%
0%
-9%
TOTAL ASSETS
Current Liabilities
Trade and other payables
Total Current Liabilities
6,272,626.23
1,471,499.31
1,471,499.31
6,677,902.05
405,275.81
6%
1,573,977.23
1,573,977.23
102,477.92
102,477.92
7%
7%
Shareholder's Equity
Common Stock, P240 Par
Retained Earnings
4,669,200.00
131,927.59
4,669,200.00
434,725.81
302,798.22
0%
230%
Total Shareholder's Equity
4,801,127.59
5,103,925.81
302,798.22
6%
TOTAL LIABILITIES AND EQUITY
6,272,626.90
6,677,903.05
405,276.14
6%
Trade and other Receivables
Prepaid Expenses
Materials Inventory
34%
81
‘
2022
2023
Increase(Derease)
Percentage
Current Assets
Cash
3,046,763.46
3,482,179.19
435,415.73
14%
Trade and other Receivables
Prepaid Expenses
Materials Inventory
Total Current Assets
245,933.57
34,816.75
3,327,513.78
260,689.58
40,724.90
3,783,593.67
14,756.01
5,908.15
456,079.89
6%
Non-Current Assets
Property, Plant and Equipment
Intangible Asset
Other Non-Current Assets
Total Non-current assets
2,780,388.27
350,000.00
220,000.00
3,350,388.27
2,518,592.36
300,000.00
220,000.00
3,038,592.36
(261,795.91)
(50,000.00)
(311,795.91)
TOTAL ASSETS
Current Liabilities
Trade and other payables
Total Current Liabilities
6,677,902.05
1,573,977.23
1,573,977.23
6,822,186.03
144,283.98
2%
1,679,104.33
1,679,104.33
105,127.10
105,127.10
7%
7%
Shareholder's Equity
Common Stock, P240 Par
Retained Earnings
4,669,200.00
434,725.81
4,669,200.00
473,883.03
39,157.22
0%
9%
Total Shareholder's Equity
5,103,925.81
5,143,083.03
39,157.22
1%
TOTAL LIABILITIES AND EQUITY
6,677,903.05
6,822,187.36
144,284.32
2%
17%
14%
-9%
-14%
0%
-9%
82
‘
2023
Current Assets
Cash
2024
Increase(Derease)
Percentage
3,482,179.19
4,151,053.82
668,874.64
19%
260,689.58
40,724.90
276,330.96
43,784.34
15,641.37
3,059.44
6%
Total Current Assets
3,783,593.67
4,471,169.12
687,575.45
18%
Non-Current Assets
Property, Plant and Equipment
Intangible Asset
Other Non-Current Assets
Total Non-current assets
2,518,592.36
300,000.00
220,000.00
3,038,592.36
2,256,796.45
250,000.00
220,000.00
2,726,796.45
(261,795.91)
(50,000.00)
(311,795.91)
-10%
-17%
0%
-10%
TOTAL ASSETS
Current Liabilities
Trade and other payables
Total Current Liabilities
6,822,186.03
1,679,104.33
1,679,104.33
7,197,965.57
375,779.54
6%
1,787,040.09
1,787,040.09
107,935.75
107,935.75
6%
6%
Shareholder's Equity
Common Stock, P240 Par
Retained Earnings
4,669,200.00
473,883.03
4,669,200.00
741,727.15
267,844.12
0%
57%
Total Shareholder's Equity
5,143,083.03
5,410,927.15
267,844.12
5%
TOTAL LIABILITIES AND EQUITY
6,822,187.36
7,197,967.24
375,779.88
6%
Trade and other Receivables
Prepaid Expenses
Materials Inventory
8%
83
‘
Vertical Analysis
2020
2021
2022
2023
2024
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Sales
10,615,892.86
100.00%
11,171,373.21
100.00%
11,735,740.43
100.00%
12,309,527.71
100.00%
12,893,300.27
100.00%
Cost of Service
5,184,081.31
48.83%
5,691,248.72
50.94%
5,942,475.25
50.64%
6,194,975.88
50.33%
6,448,827.05
50.02%
Gross Profit
5,431,811.55
51.17%
5,480,124.50
49.06%
5,793,265.18
49.36%
6,114,551.83
49.67%
6,444,473.21
49.98%
Less: Expenses
-
Pre-operating expenses
115,500.00
Operating Expenses
General and
Administration
Expenses
-
Bad Debts
11,520.00
0.11%
691.20
0.01%
732.67
0.01%
776.63
0.01%
823.23
0.01%
Permits and Licenses
25,000.00
0.24%
25,000.00
0.22%
25,000.00
0.21%
25,000.00
0.20%
25,000.00
0.19%
Salaries and Wages
923,000.00
8.69%
923,000.00
8.26%
923,000.00
7.86%
923,000.00
7.50%
923,000.00
7.16%
Depreciation expense
62,585.87
0.59%
62,585.87
0.56%
62,585.87
0.53%
62,585.87
0.51%
62,585.87
0.49%
Office Supplies expense
7,274.00
0.07%
7,492.22
0.07%
7,716.99
0.07%
7,948.50
0.06%
8,186.95
0.06%
Utilities Expense
50,468.75
0.48%
51,982.81
0.47%
53,542.30
0.46%
55,148.57
0.45%
56,803.02
0.44%
SSS Premium Expense
58,017.60
0.55%
58,017.60
0.52%
58,017.60
0.49%
58,017.60
0.47%
58,017.60
0.45%
1.09%
-
0.00%
-
-
0.00%
-
-
0.00%
-
-
0.00%
-
84
‘
Philhealth Premium
Expense
PAG-IBIG Premium
Expense
12,127.50
0.11%
12,127.50
0.11%
12,127.50
0.10%
12,127.50
0.10%
12,127.50
0.09%
8,820.00
0.08%
8,820.00
0.08%
8,820.00
0.08%
8,820.00
0.07%
8,820.00
0.07%
18,000.00
0.17%
19,080.00
0.17%
20,224.80
0.17%
21,438.29
0.17%
22,724.59
0.18%
1,176,813.72
11.09%
Advertising Expense
20,000.00
0.19%
20,000.00
0.18%
20,000.00
0.17%
20,000.00
0.16%
20,000.00
0.16%
Total Selling expense
20,000.00
0.19%
20,000
0.18%
20,000.00
0.17%
20,000.00
0.16%
20,000.00
0.16%
Total Expenses
1,196,813.72
11.27%
1,188,797.20
10.64%
1,191,767.72
10.16%
1,194,862.95
9.71%
1,198,088.76
9.29%
Net Profit before tax
4,234,997.83
39.89%
4,291,327.30
38.41%
4,601,497.46
39.21%
4,919,688.88
39.97%
5,246,384.46
40.69%
Tax
1,270,499.35
11.97%
1,287,398.19
11.52%
1,380,449.24
11.76%
1,475,906.67
11.99%
1,573,915.34
12.21%
Net Profit after tax
2,964,498.48
27.93%
3,003,929.11
26.89%
3,221,048.22
27.45%
3,443,782.22
27.98%
3,672,469.12
28.48%
Insurance Expense
Total General and
Administration
Expenses
0.00%
0.00%
0.00%
0.00%
Selling expenses
85
‘
Current Assets
2020
Cash
Trade and other Receivables
Prepaid Expenses
Materials Inventory
1,961,251
218,880
2021
2,352,369
232,013
14,454
31.79%
3.55%
0.00%
0.23%
Total Current Assets
2,194,585
Non-Current Assets
Property, Plant and
Equipment
2022
3,046,763
245,934
26,060
37.50%
3.70%
0.00%
0.42%
35.58%
2,610,442
3,303,980
53.56%
Intangible Asset
400,000
Other Non-Current Assets
2023
3,482,179
260,690
34,817
45.62%
3.68%
0.00%
0.52%
41.62%
3,327,514
3,042,184
48.50%
6.48%
350,000
220,000
3.57%
Total Non-current assets
TOTAL ASSETS
Current Liabilities
3,973,980
6,168,565
Trade and other payables
Total Current Liabilities
2024
4,151,054
276,331
40,725
51.04%
3.82%
0.00%
0.60%
43,784
57.67%
3.84%
0.00%
0.61%
49.83%
3,783,594
55.46%
4,471,169
62.12%
2,780,388
41.64%
2,518,592
36.92%
2,256,796
126.29%
5.58%
300,000
4.49%
250,000
3.66%
250,000
3.47%
220,000
3.51%
220,000
3.29%
220,000
3.22%
220,000
3.06%
64.42%
100.00%
3,662,184
6,272,627
58.38%
100.00%
3,350,388
6,677,903
50.17%
100.00%
3,038,592
6,822,187
44.54%
100.00%
2,726,796
7,197,967
37.88%
100.00%
1,453,116.89
23.56%
1,471,499.31
23.46%
1,573,977.23
23.57%
1,679,104.33
24.61%
1,787,040.09
24.83%
1,453,116.89
23.56%
1,471,499.31
23.46%
1,573,977.23
23.57%
1,679,104.33
24.61%
1,787,040.09
24.83%
Common Stock, P240 Par
4,669,200.00
75.69%
4,669,200.00
74.44%
4,669,200.00
69.92%
4,669,200.00
68.44%
4,669,200.00
64.87%
Retained Earnings
46,248.48
0.75%
131,927.59
2.10%
434,725.81
6.51%
473,883.03
6.95%
741,727.15
10.30%
Total Shareholder's Equity
TOTAL LIABILITIES AND
EQUITY
4,715,448.48
76.44%
4,801,127.59
76.54%
5,103,925.81
76.43%
5,143,083.03
75.39%
5,410,927.15
75.17%
6,168,565.37
100.00%
6,272,626.90
100.00%
6,677,903.05
100.00%
6,822,187.36
100.00%
7,197,967.24
100.00%
-
-
-
-
-
Shareholder's Equity
86
‘
Profitability Ratios
Return on Sales
2020
2021
2022
2023
2024
Profit after tax
2,964,498.48
3,003,929.11
3,221,048.22
3,443,782.22
3,672,469.12
Net Sales
10,615,892.86
11,171,373.21
11,735,740.43
12,309,527.71
12,893,300.27
28%
26.8895%
27%
28%
28%
2,964,498.48
3,003,929.11
3,221,048.22
3,443,782.22
3,672,469.12
4,669,200
4,669,200
4,669,200
4,669,200
4,669,200
63%
64%
69%
74%
79%
10,615,892.86
11,171,373.21
11,735,740.43
12,309,527.71
12,893,300.27
562,446
940,205
1,446,240
1,929,013
2,394,309
18.87
11.88
8.11
6.38
5.38
10,615,892.86
11,171,373.21
11,735,740.43
12,309,527.71
12,893,300.27
5418882.684
6220596.136
6475264.975
6750045.203
7010077.301
1.96
1.80
1.81
1.82
1.84
2194584.95
2610442.05
3327513.78
3783593.67
4471169.12
1453116.89
1471499.31
1573977.23
1679104.33
1787040.09
1.51
1.77
2.11
2.25
2.50
ROS=
Return on Investment
Profit after tax
Original
Investment
ROI=
Working Capital
Turnover
Net Sales
Average
working capital
WCTO=
Asset Turnover
Net Sales
Avg. Total
Asset
ATO=
Current Ratio
Current Ratio=
Current Assets
Current
Liability
87
‘
Net working Capital
Current Asset
(Current Liablity)
Net working
Capital=
Quick Assets Ratio
Quick Assets
Current
Liabilities
2,194,585
2,610,442
3,327,514
3,783,594
4,471,169
1,453,117
1,471,499
1,573,977
1,679,104
1,787,040
741,468
2,057,241
1,138,943
2,402,158
1,753,537
2,885,569
2,104,489
3,370,865
2,684,129
3,852,636
2,180,131
2,584,382
3,292,697
3,742,869
4,427,385
1,453,117
1.50
1,471,499
1.76
1,573,977
2.09
1,679,104
2.23
1,787,040
2.48
Projected Evaluation Techniques
Payback Period
Year
1
2
3
4
5
Net Cash Inflows
Cash to Date
3,276,294.06
3,276,294.06
3,315,724.69
6,592,018.75
3,532,843.80
6,848,568.48
3,755,577.80
7,288,421.59
3,984,264.70
7,739,842.49
Investment
4,669,200.00
Payback Period
1.00
0.42
In years
1.42
88
‘
1
1
Payback Period
1.42
Payback Reciprocal
0.70
PVCI at 15%
Net Present Value
Year
1
2
3
4
5
PVF
Net Cash Inflows
3,276,294.06
0.8696
2,849,065.31
3,315,724.69
3,532,843.80
0.7561
0.6576
2,507,019.43
2,323,198.08
3,755,577.80
3,984,264.70
0.5718
0.4972
2,147,439.38
1,980,976.41
Total
Less: Cosf of Investment
11,807,698.62
4,669,200
Net Present Value
Profitability Index
PV of Cash
Inflows
Present Value of Cash
Inflow
Cost of Investment
7,138,498.62
11,807,698.62
4,669,200.00
2.53
89
‘
INTERNAL RATE OF RETURN
67.4943990%
Year
Net Cash Inflows
1
3,276,294.06
0.59703489
1,956,061.86
2
3,315,724.69
0.356450659
1,181,892.25
3
3,532,843.80
0.21281348
751,836.78
4
3,755,577.80
0.127057073
477,172.72
5
3,984,264.70
0.075857505
302,236.38
PV of Cash Inflows
4,669,200.00
Less: Cosf of Investment
4,669,200.00
Net Present Value
-
0.00
90
‘
91
‘
Chapter VI
Socio- Economic Study
Internet connections have beneficial implications to our economy, businesses and
consumers. As the social and economic lives of users become increasingly digital, reliable
and rapid access to the wealth of content has become essential. Nowadays, internet is an
engine in changing of economic growth and innovation. It enables the flexible labor markets
improve life balances of many individuals. Although there are legitimate reasons for setting
the certain boundaries, it finds a way to provide and strengthens new opportunities for many
individuals in order to achieve the potential goal of the proposed business. By the use of the
internet, it is drastically increasing and speeds up the globalization process by reducing
physical barriers. The economy grows to be more competitive and progressive in the
corporate world due to the complexity of needs of each individual for making the transaction
more efficient, faster and possible to complete and deliver services as well as to the transfer
of payments and also for the potential users can have a valuable tool of information in using
internet in order to make lives simpler and faster in a convenient way.
A. Employment Contributions
Netbox can provide jobs to individuals by the means of hiring employees who are
capable for the respective positions with skills and expertise that can enable to meet the goals
and objectives of the company where every worker to be employed will receive an above
minimum wages rate and be given benefits as well.
92
‘
B. Government Contributions
Total Tax
Payable
2020
Vat Payable
Income Tax Payable
Total tax payable
176,037.11
1,270,499.35
1,446,536.46
177,520.69
1,287,398.19
1,464,918.88
186,947.57
1,380,449.24
1,567,396.80
196,617.24
1,475,906.67
1,672,523.90
206,544.32
1,573,915.34
1,780,459.66
2021
2022
2023
2024
Table 5.1.0 Tax Payable
The benefits that both local & national government may derive from the proposed
project is the amount of tax that will be generated and it is a great opportunity of deploying
public Wi-Fi in an affordable cost to the entire city wherein the government can effectively
empower the communities with better services.
Business Permit
25,000
Table 1.1 Business permit Annual payment
C. Other Socioeconomic Concerns
Even those who can’t afford an internet at home, can be benefit from the connection
to access public services for looking a job and personal entertainment.
It can be also affects the communities like residents and travelers can enjoy a better travel
experience about transports for a better plan of their routes
93
‘
Appendices and Attachment
A. Market Study
a) Survey Questioner
Internet Users
Name (Optional): _______________________
Direction: Kindly encircle the letter/s that corresponds to your answer. If you have other
opinion, please specify. If you have multiple answers in some question, please do write.
1. Do you access the internet?
A. Yes
B. No
2. If yes, what Gadget do you use for internet?
A. Smartphone
B. Tablet/IPad
C. Laptop/Netbook
Others (Specify):____________
3. What mode of connection do you use?
A. Paid Data
B. Free Data
C. Wi-Fi
Others (Specify):____________
4. Are you interested in a Public Wi-Fi covering the city of Pagadian?
A. Yes
B. No
94
‘
5. If yes, what amount are you willing to pay to be able to connect to this Wi-Fi on a daily
basis.
A. ₱5
B. ₱10
C. ₱15
D. ₱20
Others (Specify): _____
6. How often in a week will you connect to this public Wi-Fi?
A. 2
B. 4
C. Everyday
Others (Specify):_______
7. What aspect would you like to experience in this Public Wi-Fi? (Check the boxes)
 High Speed
 Easy Connection
 Accessibility
 Affordability
95
‘
Business Client
Business Name (Optional): ___________________Type of Business: __________________
Direction: Kindly encircle the letter/s that corresponds to your answer. If you have other
opinion, please specify. If you have multiple answer in some question, please do write.
1. Are you currently advertising your product or service?
A. Yes
B. No
2. If Yes, what mode of advertisement are you currently using?
A. Newspaper
C. Flyers
B. Radio Stations
D. Online
Others (Specify): ___________________
3. How much are you currently spending monthly on these paid advertisements?
A. ₱0-500
B. ₱500-1000
C. ₱1000-1500
D. ₱1500-2000
Others (Specify): ____________________
4. If a Social advertising service will be available such as Netbox, will you be willing to
advertise your product or service on this platform?
A. Yes
B. No
96
‘
5. If yes, which of the following options will you be interested in? (Check the boxes):
Network Advertisements:
 Option A: 600 PHP per week for 6 pop-ups a day between 7:00 AM to 5:00 PM
 Option B: 600 PHP per week for 8 pop-ups a day between 5:00 PM to 7:00 AM
 Option C: 300 PHP per week for 3 pop-ups a day between 7:00 AM to 5:00 PM
 Option D: 300 PHP per week for 4 pop-ups a day between 5:00 PM to 7:00 AM
 Option E: 800 PHP per week for 10 pop-ups a day
Platform Advertisements
 Option F: 700 per week full front cover
 Option G: 500 per week shared space cover
Site Advertisement
 Option H: 800 per week
97
‘
b) Tally Score
Business Clients
Number Letter/
Choices
1
A
B
Total
2
A
B
C
D
Result Percentage
148
101
249
59%
41%
100%
13
32
51
87
219
5.94%
14.60%
23.29%
39.73%
100%
A
B
C
D
11
60
36
36
143
8%
42%
25%
25%
100%
A
B
185
55
240
77%
23%
100%
A
B
C
D
E
F
G
H
34
28
50
24
16
18
24
22
216
16%
13%
23%
11%
7%
8%
11%
10%
100%
3
Total
4
Total
5
Total
Internet Users
Number Letter/Choices
1
A
B
Total
2
A
B
C
Total
3
A
B
C
Total
4
A
B
Total
5
A
B
C
D
Total
6
A
B
C
Total
7
A
B
C
D
Total
Result Percentage
258
10
268
96%
4%
100%
196
30
66
292
67%
10%
23%
100%
81
116
123
320
25%
94%
38%
158%
240
28
268
90%
10%
100%
124
59
27
28
238
52%
25%
11%
12%
100%
52
40
149
241
22%
17%
62%
100%
214
95
94
79
482
44%
20%
20%
16%
100%
98
‘
B. Forecasting Tools
STATISTICAL PARABOLIC
YEAR
2013
2014
2015
2016
2017
Total
Y
X
3165
3457
3743
4855
4771
19991
X^2
-4
-2
0
2
4
0
X^4
16
4
0
4
16
40
256
16
0
16
256
544
XY
X^2*Y
a
bx
cX^2
Yc
Y-Yc
(Y-Yc)^2
-12660 50640 3987.63
-922 21.1429 3086.77 78.2286 6119.71
-6914 13828 3987.63
-461 5.28571 3531.91 -74.914 5612.15
0
0 3987.63
0
0 3987.63 -244.63 59843.1
9710 19420 3987.63
461 5.28571 4453.91 401.086 160870
19084 76336 3987.63
922 21.1429 4930.77 -159.77 25526.9
9220 160224
Total
257972
SD
227.144
Projected Values of business
Year
a
2018
2019
2020
2021
2022
3987.629
3987.629
3987.629
3987.629
3987.629
+
+
+
+
+
+
bX
1383
1844
2305
2766
3227
+
+
+
+
+
+
cX^2
47.5714
84.5714
132.143
190.286
259
=
=
=
=
=
=
Yc
5418.2 x59.44%
5916.2 x59.44%
6424.77 x59.44%
6943.91 x59.44%
7473.63 x59.44%
Number of Businesses Advertising
3220.58
3516.59
3818.88
4127.46
4442.32
x20.54%
x20.54%
x20.54%
x20.54%
x20.54%
Business advertising on Radio and News Papers
661.365
722.153
784.231
847.599
912.258
Projected Values of Users
Year
2018
2019
2020
2021
2022
Population
77169.39 x59.8%
78242.05 x59.8%
79329.61 x59.8%
80432.29 x59.8%
81550.3 x59.8%
Age Segment
46147.3 X96.27%
46788.7 X96.27%
47439.1 X96.27%
48098.5 X96.27%
48767.1 X96.27%
Users of Internet
44426
45043.5
45669.6
46304.4
46948.1
\
99
‘
C. Technical Study
a) Memorandum of Agreement
100
‘
101
‘
102
‘
b) Contracts
Advertising Contract
Terms of Agreement
•
The advertisements are to be in image or video.
•
The advertisements are to be shown 3 times a day on different areas depending
on the schedule.
•
A weekly rate is to be charge for 300 PHP, payable monthly.
Client Information
Name:
___________________________________________________________________________
Address:
___________________________________________________________________________
Contact No.: _____________________Email Address: _____________________________
Note:
The entity hereby agrees on the terms of agreement.
_____________________________
Signature
103
‘
D. Management Study
a) Business Registration Form
ARTICLES OF INCORPORATION AND BY-LAWS – STOCK CORPORATION
Articles of Incorporation
Of
Netbox Corporation
KNOW ALL MEN BY THESE PRESENTS:
The undersigned incorporators, all of legal age and majority of whom are residents of the
Philippines, have this day voluntarily agreed to form a stock corporation under the laws of the
Republic of the Philippines;
AND WE HEREBYCERTIFY:
FIRST: That the name of said corporation shall be Netbox Corporation
SECOND: That the primary purpose for which such corporation is incorporated:
To provide Internet Access to customers through Wireless Fidelity connection upon
payment of a specified price. In order to allow the users to access internet network
resources from any convenient location
To provide advertising services in pop-ups on the gadgets of the customers who
connected to the network.
Provided that the corporation shall not solicit, accept or take investments/placements from the
public neither shall it issue investment contracts.
THIRD: That the principal office of the corporation is located in J. Zulueta Street, Near
Chamber School, Dao District, Pagadian City, Zamboanga Del Sur.
104
‘
FOURTH: That the term for which said corporation is to exist is 20 years from and after the
date of issuance of the certificate of incorporation;
FIFTH: That the names, nationalities and residences of the incorporators are as follows:
NAME
NATIONALITY
RESIDENCE
Clavero, Cyden R.
Filipino
Philippines
Durangparang, Nico L.
Filipino
Philippines
Fuerzas, Carl Joseph C.
Filipino
Philippines
Tingson, Arman T.
Filipino
Philippines
Uy, Roan Mae O.
Filipino
Philippines
SIXTH: That the number of directors of the corporation shall be 5; and the names,
nationalities and residences of the first directors of the corporation are as follows:
NAME
NATIONALITY
RESIDENCE
Clavero, Cyden R.
Filipino
Philippines
Durangparang, Nico L.
Filipino
Philippines
Fuerzas, Carl Joseph C.
Filipino
Philippines
Tingson, Arman T.
Filipino
Philippines
Uy, Roan Mae O.
Filipino
Philippines
105
‘
SEVENTH: That the authorized capital stock of the corporation is Four Million Six Hundred
Sixty-nine Thousand Two Hundred (P4,669,200) pesos in lawful money of the Philippines, divided
into 19,455 shares with the par value of Two Hundred Forty (P240) pesos per share;
EIGHT: That at least twenty five (25%) percent of the authorized capital stock above has
been subscribed as follows:
NAME OF
SUBSCRIBERS
NATIONALITY
NO. OF SHARES
AMOUNT
SUBSCRIBED
SUBSCRIBED
Clavero, Cyden R.
Filipino
3891
Durangparang, Nico L.
Filipino
3891
933,840
933,840
Fuerzas, Carl Joseph C.
Filipino
3891
933,840
Tingson, Arman T.
Filipino
3891
933,840
Uy, Roan Mae O.
Filipino
3891
933,840
NINTH: That the above-named subscribers have paid at least twenty-five (25%) percent of
the total subscription as follows:
NAME OF
AMOUNT SUBSCRIBED
SUBSCRIBERS
TOTAL PAID-UP
Clavero, Cyden R.
933,840
933,840
Durangparang, Nico L.
933,840
933,840
Fuerzas, Carl Joseph C.
933,840
933,840
Tingson, Arman T.
933,840
933,840
Uy, Roan Mae O.
933,840
933,840
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TENTH: That Clavero, Cyden R. has been elected by the subscribers as Treasurer of the
Corporation to act as such until his successor is duly elected and qualified in accordance with the bylaws, and that as such Treasurer, he has been authorized to receive for and in the name and for the
benefit of the corporation, all subscriptions or donations paid or given by the subscribers.
ELEVENTH: That no transfer of stock or interest which will reduce the ownership of Filipino
Citizens to less than the required percentage of the capital stock as provided by existing laws shall be
allowed or permitted to be recorded in the proper books of the corporation and this restriction shall
be indicated in all the stock certificates issued by the corporation.
TWELFTH: That the incorporators and directors undertake to change the name of the
corporation as herein provided, or as amended thereafter, immediately upon receipt of notice or
directive from the Securities and Exchange Commission that another corporation, partnership or
person has acquired a prior right to the use of that name or that the name has been declared as
misleading, deceptive, confusingly similar to a registered name or contrary to public morals, good
custom or public policy.
IN WITNESS WHEREOF, we have hereunto signed these Articles of Incorporation, this 9th day
of October 2018, in the City/Municipality of Pagadian, Province of Zamboanga Del Sur, Republic of
the Philippines.
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BY –LAWS
OF
Netbox Corporation
I.
THE TIME, PLACE AND MANNER OF CALLING AND CONDUCTING REGULAR OR SPECIAL
MEETINGS OF THE DIRECTORS.
a) Regular meetings of the board of directors of the corporation shall be held monthly,
unless the by-laws provide otherwise.
b) Special meetings of the board of directors may be held at any time upon the call of the
president or as provided in the by-laws
c) Meetings of directors may be held anywhere in or outside of the Philippines, unless the
by-laws provide otherwise. Notice of regular or special meetings stating the date, time
and place of the meeting must be sent to every director or trustee at least one (1) day
prior to the scheduled meeting, unless otherwise provided by the by-laws. A director
may waive this requirement, either expressly or impliedly.
II. THE TIME AND MANNER OF CALLING AND CONDUCTING REGULAR OR SPECIAL MEETINGS
OF THE STOCKHOLDERS.
a) Regular or annual meetings of stockholders shall be held annually on August 9 (specific
date).
b) Written notice of regular meetings shall be sent to all stockholders of record at least two
(2) weeks prior to the meeting, unless a different period is required by the by-laws.
c) Special meetings of stockholders shall be held at any time deemed necessary or as
provided in the by-laws:
d) Written notice of special meetings shall be sent to all stockholders at least one week
prior to the meeting, unless a different period is required by the by-laws.
e) Stockholders’ meetings, whether regular or special, shall be held in the city or
municipality where the principal office of the corporation is located, and if practicable in
the principal office of the corporation. Metro Manila shall, for the purpose of this
provision, be considered city or municipality.
III. THE REQUIRED QUORUM IN MEETINGS OF STOCKHOLDERS
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a) The required quorum in meetings of stockholders shall consist of the stockholder/s
representing a majority of the outstanding capital stock.
IV. THE FORM FOR PROXIES OF STOCKHOLDERS AND THE MANNER OF VOTING THEM
a) Stockholders may vote in person or by proxy in all meetings of stockholders. Proxies
shall be in writing, signed by the stockholder and filed before the scheduled meeting
with the corporate secretary. Unless otherwise provided in the proxy, it shall be valid
only for the meeting for which it is intended. No proxy shall be valid and effective for a
period longer than five (5) years at any one time.
V. THE QUALIFICATIONS, DUTIES, TERM AND COMPENSATION OF DIRECTORS
a) No person convicted by final judgment of an offense punishable by imprisonment for a
period exceeding six (6) years, or a violation of this Code, committed within five (5) years
prior to the date of his election shall qualify as a director. Every director must own at
least one (1) share of the capital stock of the corporation, which share shall stand in his
name on the books of the corporation. Any director who ceases to be the owner of at
least one (1) share of the capital stock of the corporation shall thereby cease to be a
director. A majority of the directors must be residents of the Philippines.
b) The corporate powers of the corporation shall be exercised, all business conducted and
all property of the corporation be controlled and held by the board of directors to be
elected from among the holders of stocks, who shall hold office for one (1) year and
until their successors are elected and qualified.
c) The directors shall not receive any compensation, as such directors, except for
reasonable per diems. Any compensation may be granted to directors by the vote of the
stockholders representing at least a majority of the outstanding capital stock at a regular
or special stockholders’ meeting, In no case shall the total yearly compensation of
directors, as such directors, exceed ten (10%) percent of the net income before income
tax of the corporation during the preceding year.
VI. THE MANNER OF ELECTION OR APPOINTMENT, QUALIFICATION AND THE TERM OF OFFICE
OF ALL OFFICERS OTHER THAN DIRECTORS
a) Immediately after their election, the directors of a corporation must formally organize
by the election of a PRESIDENT, who shall be a director, a TREASURER who may or may
not be a director, a SECRETARY who shall be a resident and citizen of the Philippines, and
such other officers as may be provided in the by-laws. Two (2) or more positions may be
held concurrently by the same officer, however no one shall act as PRESIDENT and
SECRETARY or as PRESIDENT and TREASURER at the same time. The officers of the
corporation shall hold office for one (1) year and until the successors are elected and
qualified. The officers of the corporation shall perform functions as required by existing
laws, rules and regulations.
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VII. FISCAL YEAR
a) The fiscal year of the corporation shall begin on the first day of January
and end on the last day of December of each year.
VIII. SEAL
a) The corporate seal shall be determined by the Board of Directors.
IX. MISCELLANEOUS PROVISIONS:
a) Matters not covered by the provisions of these by-laws shall be governed by the
provisions of the Corporation Code of the Philippines.
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IN WITNESS WHEREOF, we, the undersigned incorporators and/or stockholders present at
said meeting and voting thereat in favor of the adoption of said by-laws, have hereunto subscribed
our names this 9th day of October 2018 at Saint Columban College.
Clavero, Cyden R.
Durangparang, Nico L.
Fuerzas, Carl Joseph C.
Tingson, Arman T.
Uy, Roan Mae O.
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E. Letters
Good Day Sir/Madam:
The 4th year students of Saint Columban College are currently doing their market study
of their feasibility studies.
This is to certify that the following students:
1. Carl Joseph C. Fuerzas
2. Cyden R. Clavero
3. Arman R. Tingson
4. Nico Durangparang
5. Roan O. Uy
Are bonafide students of Saint Columban College and are currently conducting a
feasibility study on Netbox Networks, a Social advertising and Cloud-based services.
Under the guidance of their instructors and advisers.
Wilfredo P. Mondido, CPA
Adviser
Mr. Wilbert Lopez, CPA
Instructor
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