A FEASIBILITY STUDY ESTABLISHING I LABA U LAUNDRY SHOP LOCATED AT
AGUILAR STREET., BRGY. POBLACION, PAMPLONA - NEGROS ORIENTAL
Prepared by:
Labe, Jariane
Marfil, Mae Cleofe
Sumiller, Sharina Mae
Billones, Jan Michael
May 2022
Part I
Summary of the Project
Introduction
The fast change of trend from individualized laundry to commercial laundry services with
rapid technological change as well as the fast, changing and modern lifestyle of Filipinos.
Laundry Business is an easy and convenient business to start. It is not capital of management
intensive. You can start this business right from home and grow from there. It is a very
lucrative business, as not everyone puts on clothes has the time to do the laundry.
Business Description
Pamplona is a landlocked municipality in the coastal province of Negros Oriental. At this
present time, there are many establishments spotted around the area urging to look for
convenience due to their busy time. The population in the area is rising and gives a positive
outlook for some businessman who just started in the industry to put their investment in
certain businesses particularly the laundry business in which the field is not that much
penetrated.
Project Proponents
The proponents of this project are the Financial Manager major students of Central Philippine
Adventist College, namely, Jariane Labe, Mae Cleofe Marfil, Sharina Mae Sumiller and Jan
Michael Billones, currently taking feasibility study as part of their curriculum.
Proposed Name
The right name can make your business the talk of the town, especially when it is unique and
would probably attract their attention. Therefore, the proposed name of this business is "I
LABA U," which originated from the word "I love you," meaning washing the clients' fabrics
with love and care.
Mission Statement
To improve the lives and bring convenience to the clients we serve.
Vision Statement
To be the industry leader and laundry service provider of choice through our consistent
pursuit of excellence in all that we do.
Goals and Objectives
I LABA U want to accomplish its mission and vision in accordance with the following
objectives:

To identify areas of business opportunity falling within the company's expertise;

To deliver valuable and cost effective business solutions by providing and developing
technological solutions which recognizes each client's needs;

To be innovative;

To be honest in all ways;

To honour our promises;

To demonstrate professional behavior in every job we engage in;

To maintain high standards at all times; and

To become greener.
Type of Organization
I LABA U is categorized as sole proprietorship. Which owns by Jan Michael Billones, that
wants to invest his retirement fee in building a business.
- Manage
- Control
- Supervise
- Star – up cost
A sole proprietorship is chosen since it is one of the least expensive business structures to
begin. Only one person owns a sole proprietorship business, the legal requirements involve
simply registering licenses or permits that relate to the specific type of business.
Propose Project Location
The proposed business location is located in Aguilar Street, Main Road., Brgy. Poblacion,
Pamplona-Negros Oriental. This location composes boarding houses, apartments,
establishments and near households that will be the primary target market of the business.
The commercial space has a monthly rental fee of Php 5,000, including all the expenses for
utilities whereas at the first two months advance rental payment will be paid worth Php
10,000.
Description of Jobs
Fabrication and Installation of the
following:
Cabinets
Counter tables
Divisions
Ironing Board
Estimated
Cost
5,500.00
6,100.00
5,200.00
4,000.00
Total Cost for Furnitures and
Fixtures
Leasehold Improvements
Electrical works for the lights and connections to
the machines including
the materials and labor
Painting including materials and
labor
Plumbing works for the installation of water
connections to the machinesand drainage system
(septic tank)
TOTAL
20,800.00
3,000.00
3,500.00
12,000.00
18,500.00
Part II
Economic/Market Aspect
In this part in general provides information about the economic study of the business, its
current market competition, sales projection and potential buyers. This chapter also includes
the description of the market, factors affecting the demand, trends in past and future supply,
market strategy, market program and target market of the business.
Market Description
I LABA U offers great and excellent services that will make sure the safety of the fabric and
brings fragrance. The channel of distribution of I LABA U is located beside Jucy pizza in
front of municipal hall, with the permanent address Aguilar St., Main Road, Brgy. Poblacion,
Negros Oriental. I LABA U also gives comfort to its clients by having a helpful store format,
a reviving environment and a clean space to come in.
Target Market
I LABA U intends to serve all people within the municipality of Pamplona mainly those that
occupying apartment spaces, boarding houses and nearby households. These customers
usually do not have sufficient time and enough space in their place to accomplish their
laundry and dry them.
Advertising and Promotion
This
refers to
raising customer
awareness
of
the
services
and
creating services loyalty.
Leaflets and flyers – will be distributed upon the opening of the shop so that the market will
be able to be informed that it is already available.
The
leaflets and
flyers will
be
personally
done
by
the owner of the
shop which has a budgeted amount of P 3,000.00
Leaflets will include the following information:

Services offered

Price list

Company address and contact number

Business hours

Business slogan
Tarpaulin – to be placed in front of the shop. The cost would be P 2,500.00. It will include
the following information:

Business name, address and contact number

Business logo

Business hours

Business slogan
Factors affecting trends in past and future supply
The most common factor influencing the trends in past and future supply is the COVID-19
widespread which the government mandated the closure of establishments and industrial
facilities to maintain security measures and executive social distancing. Also there are delays
of transport of supplies to some businesses, the supplies and demand for consumption has
stop due to a shortage of manpower and also to the strict quarantine mandatory by the
government that only the age of 20 above can go go out into their homes.
Today, we adopt new trends for this business by innovating the mode of payment such as
switching coinless to cashless digital payments apps for fast transaction and quick result. But
for those who want manual payments it can be also an option to the customer.
Marketing Program
I LABA U has the following tactics for generating awareness of the said business and these
are:
•I LABA U just created a Facebook page and Instagram account. These social media apps
helps to reach out target markets that will make the business popular to customers.
•Discount voucher for more than 20 kilos to be wash.
•Posting some flyers in any part of the town, that will aware the residents to the business.
Marketing Strategy
No other laundry shop around the town of pamplona offers delivery and pick-up service. The
idea is inspired by services that already offers this solution such as water refilling stations and
gas delivery services. One of the marketing strategy is to offer pick-up and delivery service
not only does it offer convenience but it also allows greater exposure for the business.
Whenever a delivery personnel roam around the streets and highways of Pamplona bearing
the business name and logo, marketing via establishment is established.
Part III
Technical Feasibility
This part provides information about the structure and the floor plan, operating
procedures/processes that are essential to the overall operation of the business, rate of the
product, proposed equipment, machineries and supplies together with their descriptions and
specifications.
Rate of the product
1 kilo = Php 30.00 (clothes, shorts, jackets)
1 kilo = Php 40.00 (linens, comforters)
Minimum rate = Php 70.00 (less than 2 ½ kls)
Pick-up in customer's home and delivery: Php 20.00
Hours to finished:
I load = 30 - 40mins.
2 loads up = 1 hr. - 2 hrs. (depends if there are clothes that need to be soaked)
WASTE DISPOSAL
Step 1: The higher hole was inserted on the side of the washing waste pipe, and the lower
hole is for the pipe to the canal.
Step 2: Vermin proof lid on the grey water filter box. It comes with a secure lid, so that will
also deter vermin.
Step 3: Larger filter stones layer the base of the black box.
Step 4: Smaller filter stones were laid on top of the larger stone.
Step 5: A couple of layers of shade cloth to hold the sand.
Step 6: A layer of clean sand.
Step 7: Test run
Operating Procedure:
The above chart shows the laundry process, each process is explained as below:
1. Tagging- the clothes are firstly tagged with a specific number, mentioned in the invoice
given to the customers. This procedure is used for identification of clothes once ready for
collection.
2. Sorting- after tagging the clothes are arranged in different sets. Some people will sort by
color, other sort by fabric type.
3. Pre-treatment of clothes- soaking in hot water.
4. Washing- the clothes are washed in washing machine using detergent washing powder and
or bleach on white.
5. Drying- the clothes washed are transferred to dryers.
6. Packing- once folded, the clothes are properly hanged and covered in the plastic wrap and
then tagged so that it can be easily identified.
Equipment and Materials to be used in the business
Electrolux EWT904 - 9kg Top
Price: 22,395.00
7kg
Sensor Dry
- EDS7051
Price: 18,995.00
Dryer with Iron Aid
4 CYLINDER 5 SPEED SUZUKI VAN
TYPE WITH AIRCON - Used
Php 95,000.00
Water Tank
Storagebin
disruption.
case
there
will be water
Php 10,000.00
2in1,blower and suction- 1/2hp,
200watts,20" x 20"
Exhaust Fan Php 6,000.00
1 pc. Of 120kls. Weighing Scale
Php 3,500.00
1 pc. Of Calculator
Php 200.00
Water Hose 50ft
Php 1,500.00
2 pcs. Of Steam Flat Iron
Php 1,095.00 each
1set of
Dataworx
Computer Package (Black)
Budget
Php 11,879.50
1 pc. of Plastic Container (for filtration
process)
Php 739.75
1 sq.meter of Black Shade Cloth Php
100.00
Supreme Power Detergent
Price: P 19,500.00 @ 1,625 per sack
Fabric Softener
Price : P 7,600.00 @ 190 per gallon
Paint, Oil and Grease Remover
Price : P 5,000.00 @ 500 per gallon
Fabric Freshener
Price : P 10,000.00 @ 250 per gallon
2 pairs of Rubber Gloves
Php 199.00 @ 99.50 each
10 pcs. Of Laundry Basket
Php 2,000.00 @ 200 each
3 pcs. Of Dipper
Php 90.00 @ 30.00 each
144 pcs x 10. Plastic Hangers
Php 4,000.00 @ 400.00 for 144
Face Mask Ear Loop (50 pcs/box)
Php 100.00
Big Plastic Basin
Php 2,250.00 @ 450.00
50
Roll
rolls
of
Tagging
Php 9,000.00 @ 180.00 each
Ball Pens
Php 9,000.00 @ 180.00
40 pcs. Of Scotch Tape
Php 500.00 @12.50each
Record Book- 300 Pages
Php 100.00
Paper
10
pcs.
Order Slip
For
500
sheets of
10
pcs. For
Delivery Slip
500
sheets of
Php 2,600.00
Plastics
Units
16x24
20x30
200 pcs.
100 pcs.
20x40
24x36
24x60
1 year
100 pcs.
100 pcs.
100 pcs.
1,770*2
Sando
Bags
310.00 Large
165.00 Extra
Large
285.00 Jumbo
390.00
620.00
3,540.00
Units
100 pcs.
100 pcs.
140.00
185.00
100 pcs.
330.00
655*2
1,310.00
Cost of Services
COSTING PER 10 kg Process
FOR WASHING
MACHINE PROCESS
( WDF
8kg,WDP
2kg)*a
TOTAL
COST
Direct Material
Wash-dryfold
Wash-drypress
8kg
2kg
Detergent (250grams)*b
Php
16.25 Php
13.00 Php
3.25
Fabric Softener (1 cup)*c
Fabric Freshener (1 cup)*d
Php
11.88 Php
9.50 Php
2.38
Php
15.63 Php
12.50 Php
3.13
Php
5.13 Php
4.10 Php
1.03
Php 4.86 Php
2.54 Php
2.03 Php
0.51
Php
48.88 Php
39.10 Php
9.78
Php
4.89 Php
4.89
Liquid Bleach( 1 cup)*e
Water (522L)*g
Total Direct Material Cost
DM Cost per Unit*f
Direct Labor
Wash-dry-fold DL allocation *h
Php
76.57 Php
Wash-dry-press DL allocation*h
Php
89.33
Total Direct Labor Cost
Php
89.33
Php 165.90 Php
76.57 Php
89.33
Php
9.57 Php
11.17
DL Cost per Unit*i
Overhead-Electricity Consumption
76.57
Rate
Machine Washing(30min)
Machine 1 (.600kwh)*j
Php
7.9734
Php
2.39 Php
1.91 Php
0.48
Machine 2 (.600kwh)*j
Php7.9734 Php
2.39 Php
1.91 Php
0.48
Dryer1 (4.46kwh)*k Php 7.9734 Php
17.78 Php
14.22 Php
3.56
Dryer2 (4.46kwh)*k Php 7.9734 Php
17.78 Php
14.22 Php
3.56
Php
2.51
40.35 Php
32.28 Php
10.58
Php
4.03 Php
1.32
Tumble Dryer(30 min)
Pressing (15 min)
Flat Iron (1.258kwh)*l
Total Overhead Cost
Overhead Cost per unit
Total Cost of Process
Total Cost per Unit
Php 7.9734 Php
Php
2.51
Php 255.12 Php 147.95 Php 109.68
Php
18.49 Php
54.84
COSTING
HANDWASHING
Total
Cost
Direct Material
Detergent (125grams)*m
8.13
Fabric Softener (1/2cup)*n
5.94
Fabric Freshener (1/2 cup)*o
7.81
Liquid Bleach( 1/2cup)*p
2.56
Water (391.5L)*q
4.86
Total Direct Material
1.90
26.34
DM Cost per Unit*r
5.27
Direct Labor
Handwash-dryfold *s
252.24
total Direct Labor
252.24
Direct Labor unit cost
50.45
Overhead
Tumble Dryer(15
min)
Dryer1 (4.46kwh)*t
Total Overhead
Cost per unit
Total Handwashing Cost
Total Cost per unit
7.9734
8.89
8.89
1.78
287.47
57.49
Plant Location
Plant lay out
Part IV
Organizational and Managerial Activities
This part includes the organizational structure of the business that is directed toward the
achievement of the organization aims.
Organizational structure
MANAGER
(Owner)
BOOKKEEPER
ROUTE WORKER
(pickup, deliver, collect)
SUPERVISOR
(counter clerk)
MACHINE WASHER
(sorter tags, washers)
EXTRACTOR OPERATOR
(finishes clothes)
Job Description and Duties
I. Machine washers
- weigh laundry and place it in huge washing machines. Machine washers control the
machine settings bfor each kind of material.
II. Counter Clerk/Supervisor
- Received laundries from customers, give back clean laundry, scheduling the date of pick-up
and delivery with the customers and billing.
III. Bookkeeper
- Analyzing and recording the transaction and presenting the reports on time to the manager.
IV. Markers or Sorters Tag
- Mark the laundries so that they can be returned to the appropriate customer. They usually
remove loose buttons and mark items that need to be mended.
V. Extractor operators
- place it in extractors which spin modt of the water out of it. The laundry then goes to
tumbler operations who put it in drying machines that tumble it dry.
VI. Inspector
- Check the finished laundry. If it needs rewashing or repressing, the inspector sends it back
to the proper department.
VII. Finishers
- Fold and press the clean, dry laundry, when requested, they press. They also may just fold
and stack. The finished items are then folded or placed in hangers.
VIII. Route workers
- Pick-up laundries if there is a call from customer's homes. They market new customers
along their routes. Deliver also clean laundry, giving invoices and collect payments.
IX. Manager/Owner
- manages the daily operations of a laundry services department.
Manpower requirements:
I. Physical requirements
•age must be 18-45 yrs. old
•either male/female
•no skin allergies to different fabrics
II. Skills, interests and qualities
•must have practical skills to operate and adjust machiner
•good attention to detail
•willingness to work methodically and follow instructions
•willingness to work flexibly
•good timekeeping skills
•has the ability to count and measure accurately
Minimum monthly salary
- Php 6,500.00
Business culture
I. Operating hours
8:00 - 12:00, 1:00 - 5:00 pm
Sunday - Friday
Breaktime: 12:00 pm - 1:00 pm
II. Day to day monitoring
The inspector will monitor the employees attitude and performance, the laundry process, the
consistency and on-going coaching and giving instructions to them everyday. This includes:
-monitoring of sales
-inventory
-delivery and pick-up
The pick-up and delivery will start at 8:00 am drom Sunday until Friday. The customers will
contact through call or message on Facebook and Instagram. The customer and the counter
clerk will set-up the date of pick-up of laundry through their conversation, prior to the date of
pick-up in order to manage the route in one way to reduce the cost of gasoline. However,
there will be a charge for every pick-up and delivery.
Chapter V
The purpose of this chapter is to project how much startup capital is needed, sources of
capital, return on investments and other financial considerations.
Considerations
The owner shall invest P 500,000.00 in the business as shown in the next page, which
approximates the total pre- operating expenses.
1. A service rendered is on cash basis.
2. The equipment and leasehold improvements are to be depreciated on a straight-line
basis.
3. For simplicity, all employees are presumed to be single and that they have no
dependents for purposes of computing the withholding tax.
4. Income tax is computed using the tabular tax rate for individuals provided by the
National Internal Revenue Code.
5. There are no other current liabilities aside from the employee benefits and income tax
since the entity pays its obligations before the end of the year.
6. Owner/Manager will withdraw instead of salary.
Pre - Operating Expenses
Machines
9kg Top Load Washing Machine with T-Drive 89,580.00
Washing Technology
7kg Sensor Dry Dryer with Iron Aid
75,980.00
165,560.00
Equipments
Water Tank
10,000.00
Exhaust fan
6,000.00
Weighing Scale
3,500.00
Steam Flat Iron
1,095.00
Computer Set
11,879.50 32,474.50
Vehicle
Multicab
150,000.00
Leasehold Improvements
11,500.00
Furnitures and Fixtures
18,500.00
Advertising Expenses
Leaflets and flyers
3,000.00
Tarpaulin
2,500.00 5,500.00
Gloves
199.00
Laundry Basket
2,000.00
Dipper
90.00
Hangers
4,000.00
Face Mask
100.00
Plastic Basin
2,250.00
Tagging paper
9,000.00
Ballpens
60.00
Supplies, etc.
Scotch tape
500.00
Record Book
150.00
Calculator
200.00
Water Hose
1,500.00
Fire Extinguisher
1,600.00
Order Slip
1,687.50
Delivery Slip
2,600.00
Plastic Bag
3,540.00
1 sq.meter of Black Shade Cloth
100.00
Plastic Container (for filtration process)
739.75
Sando Bags
1,310.00 31,626.25
Detergents
19,500.00
Fabric Softener
7,600.00
Fabric Freshener
10,000.00
Liquid Bleach
3,280.00
Paint Oil and Grease Remover
5,000.00 45,380.00
Cleaning Products
Duties and Licenses
Rent
TOTAL
5,842.00
2 months advance 1 month deposit
10,000.00
476,382.75
I LABA U
PROJECTED FIVE YEAR COMPARATIVE
BALANCESHEET
Year
1
Current Assets
Cash
Supplies Inventories
Total Current Assets
Non-Current Assets
Equipment
Less: Accumulated
Depreciation
Leasehold
Improvements
Less: Accumulated
Depreciation
Furniture and Fixtures
Less: Accumulated
Depreciation
Total Non-Current
Assets
Total assets
Year
2
ASSETS
Year 3
Year
4
Year 5
660,841.65
884,816.46
982,166.09
970,134.35
623,783.09
2,269.00
663,110.65
2,495.90
887,312.36
2,745.49
984,911.58
3,020.04
973,154.39
3,322.04
627,105.13
348,034.50
50,606.46
348,034.50
101,212.92
348,034.50
151,819.38
348,034.50
202,425.84
348,034.50
253,032.30
11,500.00
11,500.00
11,500.00
11,500.00
11,500.00
2,300.00
4,600.00
6,900.00
9,200.00
11,500.00
18,500.00
18,500.00
18,500.00
18,500.00
18,500.00
3,700.00
7,400.00
11,100.00
14,800.00
18,500.00
PHP 151,608.66
PHP 95,002.20
PHP 321,428.04 PHP 264,821.58 PHP 208,215.12
PHP 984,538.69 PHP1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33
LIABILITIES &
OWNER'S
EQUITY
Current Liabilities
Due to SSS
4,680.00
4,680.00
Due to PhilHealth
1,200.00
1,200.00
Due to PAG-IBIG
1,672.32
1,672.32
Income Tax Payable
178,435.64
232,529.88
Total Current Liabilities PHP 185,987.96 PHP 240,082.20
Non-Current Liabilities
Loan Payable
Total Liabilities
Owner's Equity
Capital
Total Liabilities and
Owner's Equity
0.00
0.00
PHP 185,987.96 PHP 240,082.20
798,550.73
PHP 984,538.69
912,051.73
4,680.00
4,680.00
1,200.00
1,200.00
1,672.32
1,672.32
286,127.25
345,084.35
PHP
PHP 352,636.67
293,679.57
0.00
PHP
293,679.57
899,447.14
PHP PHP
1,152,133.94 1,193,126.70
0.00
PHP 352,636.67
772,126.38
PHP 1,124,763.05
4,680.00
1,200.00
1,672.32
410,577.16
PHP
418,129.48
0.00
PHP
418,129.48
303,977.85
PHP
722,107.33
I LABA U
PROJECTED FIVE YEAR COMPARATIVE
INCOMESTATEMENT
Year
Year
1
2
Service Revenues
PHP 1,648,920.00 PHP 1,813,812.00
Less: Discounts
49,467.60
54,414.36
Net Service Revenue PHP 1,599,452.40 PHP 1,759,397.64
Less: Cost of Services
392,968.15
399,548.25
Gross Profit
PHP 1,206,484.25 PHP 1,359,849.39
Less: Expenses
Salaries &
167,232.00
167,232.00
Wages
Depreciation 35,213.31
35,213.31
Equipment
Depreciation 2,300.00
2,300.00
Leasehold
improvements
Depreciation 3,700.00
3,700.00
Furnitures and
Fixtures
Rent
140,000.00
120,000.00
Supplies
31,626.25
34,788.88
Advertising
5,500.00
3,000.00
SSS
37,850.40
37,850.40
contribution
PhilHealth
7,200.00
7,200.00
Contribution
PAG-IBIG
10,033.92
10,033.92
Contribution
Duties and
5,842.00
2,500.00
Licenses
Utilities
38,000.00
38,000.00
Repairs and
5,000.00
12,000.00
Maintenance
Total General and
489,497.88
473,818.51
Administrative Exp
Income Before Tax
PHP 716,986.37
PHP 886,030.89
Income Tax (Tabular) PHP 178,435.64
232,529.88
Income After Tax
PHP 538,550.73 PHP 653,501.00
Year
Year
3
4
PHP 1,995,193.20 PHP 2,194,712.52
59,855.80
65,841.38
PHP 1,935,337.40 PHP 2,128,871.14
404,517.36
409,983.38
PHP 1,530,820.04 PHP 1,718,887.76
Year
5
PHP 2,414,183.77
72,425.51
PHP 2,341,758.26
415,996.00
PHP 1,925,762.25
167,232.00
167,232.00
167,232.00
35,213.31
35,213.31
35,213.31
2,300.00
2,300.00
2,300.00
3,700.00
3,700.00
3,700.00
120,000.00
38,267.76
3,000.00
37,850.40
120,000.00
42,094.54
3,000.00
37,850.40
120,000.00
46,303.99
1,000.00
37,850.40
7,200.00
7,200.00
7,200.00
10,033.92
10,033.92
10,033.92
2,500.00
2,500.00
2,500.00
38,000.00
12,000.00
38,000.00
12,000.00
38,000.00
12,000.00
477,297.39
481,124.17
483,333.62
PHP 1,053,522.65 PHP 1,237,763.59
286,127.25
345,084.35
PHP 767,395.40 PHP 892,679.24
PHP 1,442,428.63
410,577.16
PHP 1,031,851.47
Cost of Services Provided
Inventory, Jan
Purchases
Freight-in
Year 1
Year 2
Year 3
Year 4
Year 5
0
2,269.00
2,495.90
2,745.49
3,020.04
45,380.00 49,918.00 54,909.80 60,400.78 66,440.86
2,269.00
Total Purchases
Purchase Discounts
Net Purchases
2,495.90
2,745.49
3,020.04
3,322.04
47,649.00 52,413.90 57,655.29 63,420.82 69,762.90
2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
45,380.00 49,918.00 54,909.80 60,400.78 66,440.86
Cost of Inventoy Available for
Use
Less: Inventory, Dec
45,380.00 52,187.00 57,405.70 63,146.27 69,460.90
2,269.00
2,495.90
2,745.49
3,020.04
3,322.04
Cost of Inventoy Used
43,111.00 49,691.10 54,660.21 60,126.23 66,138.85
Salaries of Direct Workers
Total Depreciation of Direct
Equipment
TOTAL COST OF
SERVICES
Description
1. Gasoline
2. Telephone
3. Electricity
4. Water
5. Computer
334,464.00 334,464.00 334,464.00 334,464.00 334,464.00
15,393.15 15,393.15 15,393.15 15,393.15 15,393.15
392,968.15
399,548.25
404,517.36
409,983.38
415,996.00
Breakdown of Utilities
(Indirect)
Consumption per day (Php)
In One Year Total
100
312
31,200.00
0.191362
312
59.70
3.18936
312
995.08
0.486
312
151.63
10.04648
312
3,134.50
35,540.92
Year 1
PROJECTED
STATEMENT OF
CASH FLOWS
Year
Year
2
3
Year
4
Year
5
Cash Provided/Used by
Operating Activities
Cash Receipts from
Sales & Services
PHP
PHP
PHP
PHP
PHP
1,599,452.40 1,759,397.64 1,935,337.40 2,128,871.14 2,341,758.26
Purchase of Inventory
45,380.00
49,918.00
54,909.80
60,400.78
66,440.86
Payment of Advertising
5,500.00
3,000.00
3,000.00
3,000.00
1,000.00
Fee
Payment of Utilities
38,000.00
38,000.00
38,000.00
38,000.00
38,000.00
Expense
Payment of supplies
31,626.25
34,788.88
38,267.76
42,094.54
46,303.99
Payment of Rent
140,000.00
120,000.00
120,000.00
120,000.00
120,000.00
Payment of Repairs and
5,000.00
12,000.00
12,000.00
12,000.00
12,000.00
Maintenance
Payment of Employee
466,152.48
466,152.48
466,152.48
466,152.48
466,152.48
Salaries / Wages
SSS, Philhealth & PAG83,075.52
90,627.84
90,627.84
90,627.84
90,627.84
IBIG Premium (ER&EE
share)
Payment of Duties and
5,842.00
2,500.00
2,500.00
2,500.00
2,500.00
Licences
Remittance of
Withholding Tax
Payment of Income Tax
0.00
178,435.64
232,529.88
286,127.25
345,084.35
Net Cash Provided by
778,876.15
763,974.81
877,349.64 1,007,968.26 1,153,648.74
Operating Activities
Cash Provided/Used
from Investing Activities
Payment to acquire
366,534.50
equipment
Payment for leasehold
11,500.00
improvements
Net Cash Used in
378,034.50
Investing Activities
Cash Provided from
Financing Activities
Cash received as
500,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
investment by owner
Payment for withdrawals 240,000.00
by owner
Net Cash Provided by
260,000.00
Financing Activities
Net Cash Inflow
(Outflow)
Add: Beginning Cash
Balance
Ending Cash Balance
660,841.65
-
540,000.00
780,000.00 1,020,000.00
1,500,000.00
-540,000.00
-780,000.00 -1,020,000.00 -1,500,000.00
223,974.81
97,349.64
-12,031.74
-346,351.26
PHP 660,841.65
884,816.46
982,166.09
970,134.35
PHP
PHP 884,816.46
660,841.65
PHP
982,166.09
PHP
970,134.35
PHP 623,783.09
I LABA U
PROJECTED STATEMENT OF CHANGES in OWNER'S
EQUITY
YEAR
1
Beginning Balance
Add: Investment
Net Income
Total
Less: Withdrawals
Ending Capital
Balance
2
A, Capital
PHP 0.00
500,000.00
538,550.73
PHP
1,038,550.73
240,000.00
PHP
798,550.73
3
A, Capital
PHP
798,550.73
0.00
653,501.00
PHP
1,452,051.73
540,000.00
PHP
912,051.73
4
5
A, Capital
A, Capital
A, Capital
PHP
PHP
PHP
912,051.73
899,447.14
772,126.38
0.00
0.00
0.00
767,395.40
892,679.24 1,031,851.47
PHP
PHP
PHP
1,679,447.14 1,792,126.38 1,803,977.85
780,000.00 1,020,000.00 1,500,000.00
PHP
PHP
PHP
899,447.14 772,126.38
303,977.85
FINANCIAL STATEMENT ANALYSIS
Return On Investment
Net Income
Divided by: Average Investment
ROI Percentage
Year 1
Year 2
Year 3
538,550.73
653,501.00
767,395.40
984,538.69 1,068,336.31 1,172,630.32
0.547
0.612
0.654
Payback Period (Uneven Cash Flows)
Net Operating Cash
Year
Flows
1
778,876.15
2
763,974.81
3
877,349.64
4
1,007,968.26
5
1,153,648.74
Year4
892,679.24
1,158,944.88
0.770
Cummulative Cash
Flows
778,876.15
1,542,850.96
2,420,200.59
3,428,168.85
4,581,817.59
500,000.00
0.67
Computation:
In 8 months
Year 5
1,031,851.47
923,435.19
1.117
Chapter VI
SOCIO-ECONOMIC ASPECT
This chapter in general provides information about the socio economic study of the business
as well as its environmental impact. This will tackle the benefits that can be rendered to the
customers, the owners and the staff and how to keep the environment safe from the chemicals
that are main components of the laundry business.
Socio-Economic
The proposed laundry business, “I LABA U” will bring satisfaction to customers, who are
looking for a laundry shop that will cater good services of cleaning their clothes at a
reasonable price. The business will help the customers or individuals to maximize their time
for other work and serve comfort to the customers.
Contribution to the Economy
The proposed business will benefit the economy through providing employment to every
individual especially within the resident covered by the study. This will give the hired
employees and their families their source of income for their living needs. This business will
support local workers. It will also promote the business and also contribute to the competition
which will lower the price of the product but will maintain the quality of the products.
Contribution to the Government
As Filipino citizens, the business owners will pay their tax liabilities mandated by the law.
Tax will help the government generate funds for the improvement of public service and
government projects.
Contribution to the Society
“I LABA U” laundry business will keep this town marketable to attract more investors that
will help the community for its improvements and modernization, which, in turn leads to
money placed directly into the community
Environmental Impact
Environmental impact of cleaning agents is the consequences of chemicals contained in the
products. We can't deny the fact that our environment is the first affected by what we are
doing especially when it involves upgrading our works through the help of technology.
Simple things like using a car as a means of transportation can contribute or rather give
impact to our environment.
Laundry business like “I LABA U”, perhaps gives an impact to our environment. The
machines that we used emit greenhouse gasses (CO2) that add effect to what we are
experiencing nowadays, the "global warming".
Another thing is the used of detergents and bleaches in washing garments. Although the place
is not near the river in which fishes could die, detergents may still affect our environment.
Like lots of fillers used in powder detergents are poured in drains causing wastage of useful
products like common salt / washing soda and choking of drain / sewerage system.
Components of detergents like sodium sulphate can wreak havoc on septic system. Synthetic
detergents and our laundry practices are contributing to our ground level water pollution.
The laundry business is aware of its harm to the environment from the chemical substance
that will be used as stated above. Since the proposed business have to make sure that it will
not cause any harm to the people and environment as well, it has to make sure to treat every
water it throws.
The water treatment will use filtration system for removal of contaminants by chemical and
physical bonding. The proposed business will make this process cost friendly and more
effective.