A FEASIBILITY STUDY OF SETTING UP A DIGITAL E-LOADING

VENDING MACHINE IN GENERAL SANTOS CITY

Presented to the Faculty of Ramon Magsaysay Memorial Colleges

General Santos City

In Partial Fulfillment

Of the Requirement for the Degree

Bachelor of Science in Internal Auditing

by

BELARMINO, CHARBE XYRAH G.

2021
 CHAPTER 1

The Problem and It’s Setting

1.1 BACKGROUND OF THE STUDY

Presently, mobile phones have become an essential part of

our lives. Cellular communication plays an important role in our

daily life. It helps us locate and be in touch and improved

communication with another person. Since the Philippines being a

developing country 33% of our population is under poverty (Senate

Economic Planning Office,2005). Wireless Telecommunications

Company offered prepaid loading option that is highly suitable in the

Philippine setting. Subscribers purchase consumable credits for

their account in present denominations. These gave subscribers

limited option to choose the amount they will load up.

Vending machine is one of the suitable equipment to establish

a new product of e-loading business in which vending machines are

very convenient and they allow every subscribers of any

telecommunication company to get what they need in a time and

cost-saving manner. Vending machines have good prices on them

and they are always convenient when they are in the right location.

As people continue to seek for convenience, more and more

technologies are invented. One of these technologies is the vending

 machine. Vending machines come in different types as they are made for

different purposes. Vending Machines are rarely found in the market of

Egypt and its industry hasn’t been made yet in addition to the increasing

consumption of instant noodles within different ages of people made the

idea of designing & implementing an instant noodles vending machine the

availability of investing in a new virgin field with the knowhow of

mechatronics can help in making this project a successful and a practical

realistic one. Before starting with details of the proposed project, we will

first talk about some facts and history about variety of vending machines

(Sabek 2012).

Vending machine is a coin operated machine for selling

merchandise (Merriam Webster Dictionary). Vending machine provides

various product such as snacks, beverages, water, tickets, and others

product. Vending machine has many benefits such as no need human

energy, flexible in time, and saving time (Amar 2008)

1.2. INDUSTRY BACKGROUND

Vending or automatic retailing, as the process of selling

merchandise via automated machine is increasingly known, has a

long history. During the early 1880s, the first commercial coin-

operated vending machines were introduced in London, England.

The machines were commonly found at railway stations and post

offices because they were convenient for purchasing envelopes,

postcards, and notepaper (Bellis,2019).

 In 2000, PVC ( Philippine Vending Corporation) was the first

to introduce the hot cup vending machines and snack vending

machines across Metro Manila. The company is the pioneer in

providing one-stop vending solutions to offices, schools and

universities, hospitals, call centers and factories nationwide

(Magdaraog,2019). And the first e-loading business was first

introduce by Smart Communications a leading telecommunication

group and considered to be the world's first electronic reloading

service.

In the year 2014, a company named MindmapCommtech Inc.

was successfully created an interactive credit loading machine

targeting the prepaid market called “ULOAD” in which the customers

can purchase prepaid credits for all local mobile telcos (Globe,

Smart, Sun, Talk N Text, Touch Mobile, Red Mobile) load for

broadband sticks (Globe Tattoo, SmartBro, Sun Broadband) online

game credits (Amped, Level Up Games, Game Club, Garena ,

Mobius Games, MOL).

The primary purpose of vending machine at any level of

business is to bring a fundamental change in the consumers

( Kasznik, 2015). To dispense merchandise when a customer

deposits money, validated by a currency detector to be sufficient the

desired item. Vending machines are one of the few things keeping us
away from the dream of a cashless society. The devices, which offer

up an array of items for a little bit of pocket change, are silent but

prevalent. They represent some of our most technologically

advanced furniture, and they’ll probably always be there for us in our

time of need (Smith,2015).

1.3 PROJECT DESCRIPTION

Represents the General Description of the of the Venture,

including the Brand Name, Product Features and Styles and the

major consumer of the product.

1.3.1 Proposed name of the Business and Logo

The proposed business is a Digital E-loading Vending

Machine and it will be named, E-LOADING VENDING

MACHINE . It is located at RD Plaza Bldg, Barangay

Dadiangas West, General Santos City. The proposed

business will rent a space in the particular site .

Figure 1

Business Logo
 This is the agreed logo of the proposed business. The

Two connected machine symbolizes the feature and style of

the proposed business. The Blue color background symbolizes

the integrity and honesty of the proposed business and the

white color stands for showing integrity, cleanliness and safety

which works well for the proposed business in promoting hi-

tech products.

1.3.2 Products and/or Services

The E-Loading Vending Machine is mainly a service

industry. The product of the proposed business is different

from any other loading services established in General Santos

City. E-Loading Vending Machine is your one stop shop, an all

in one Loading Vendo Machine that caters all credit load such

as Globe, TM, Smart, TNT, Sun Cellular. The primary purpose

of the E-Loading Vending Machine at any level of business is

to bring a fundamental change in the consumers.

1.3.3 Major Consumer

The E-Loading Vending Machine is an interactive credit

loading machine targeting the prepaid market in which the

customers can easily purchase prepaid credits for all local

mobile telcos (Globe, Smart, Sun, Talk N Text, Touch Mobile,

 Red Mobile) load for broadband sticks (Globe Tattoo,

SmartBro, Sun Broadband).

The major consumers are the residence of Barangay

Dadiangas West, North, South in General Santos City.

1.4 RATIONALE OF THE STUDY

The researchers chose to study the Feasibility of setting up a

Digital E-Loading Vending Machine in General Santos City. The

reasons for the study is to know the different strategies on how to

increase profitability in the aspects of marketing, technical,

management and organization, financial, and socio-economic of the

proposed business.

In connection with this, the researchers want to set up another

Digital E-Loading Vending machine in some areas of General Santos

City to provide the wants and needs of every consumers.

1.5 OBJECTIVES OF THE STUDY

This study aims to determine the viability of setting up a Digital

E-Loading Vending Machine at RD Plaza Bldg., Barangay

Dadiangas West, General Santos City

Specifically it sought to:

1. Describe the E-Loading Industry in General Santos City

 2. Present the description of the proposed E-Loading Vending

Machine

3. Determine the viability of the proposed project in the

following aspects:

3.1 Marketing;

3.2 Technical;

3.3 Management and Organization

3.4 Financial; and

3.5 Socio-economic

1.6 SCOPE AND LIMITATION

The scope of this study is to determine the viability of the

study in terms of convenience and efficiency of digital e-loading

vending machine. This involves survey for those who are aged

15-59 years old.

The study is delimited only to the respondents residing in

Barangay Dadiangas West, Barangay Dadiangas North, Barangay

Dadiangas South in General Santos City and the result of the study

will present information being gathered by the researchers from the

respondents.
1.7 SIGNIFICANCE OF THE STUDY

The result of the proposed business would benefits the

following:

Existing Players – the result of the study will give additional ideas

on what are the new practices that they need to acquire for the better

operation of the business.

Potential Investors- the result of the study will give an idea to

the other investors who have the plan in putting up this kind of

business and can also give an idea so it can survive in the

industry.

Future Researchers- the result of the study will serve as

additional knowledge and it will serve them as a guide for the

future when they are about to engage in the same business.

1.8 RESEARCH METHODOLOGY

This section presents the method and procedures in

conducting a study in setting up an E-loading Vending Machine

in General Santos City. It includes the research design,

respondents, locale of the study, data gathering tools, and data

gathering procedure.
1.8.1 Research Design

In the conduct of the research, the descriptive-

exploratory was used. The general objectives in exploratory

research is to gain insights, ideas and clarify concepts.

Exploratory research is used to establish priorities in studying

the competing explanations. They might also arise because

exploratory study generates information about the practical

possibilities of researching specific conjectural statements. It

is also used to increased familiarity of the researchers with the

problem when the research is new to the problem.

The Feasibility Study of Setting up a Digital E-Load Vending Machine in
General Santos City

Objectives of the Study

1. Marketing Aspect
2. Technical Aspect
3. Management and
Organization Aspect
4. Financial Aspect
5. Socio Economic
Aspect

Research Methodology

Data Gathering Procedures

Data Gathering Tools  Identifying the target

 Conducting Surveys
 Survey Questionnaire
and interviews
 Interview Guide
 Summarizing all the
 Internet
Respondents of results of the data
 Books and published the study gathered
materials with related
At least  Interpret and convert
literature
3 Barangays the results to useful
near your information
Business
Location

Locale of the Study

Figure No.1
 Research Design

1.8.2 Respondents of the Study

The surveys conducted by the researcher were

centered to the residents of Barangay Dadiangas West,

Barangay Dadiangas South and Barangay Dadiangas North,

General Santos City. The respondents will be randomly

selected to avoid any biases and to make an accurate and

factual result. Included in the respondents are the existing

players of the economy.

Table No. 1
Respondents
Age Range Population Percentage Target Market 15-59 years old Percentage No. of respondents per age rate
0-4 2,796 10%
5--9 2,707 10%
10--14 2,641 9%
15-19 3,436 12% 12% 19% 19
20-24 3,221 11% 11% 18% 18
25-29 2,544 9% 9% 14% 14
30-34 1,936 7% 7% 11% 11
35-39 1,813 6% 6% 10% 10
40-44 1,667 6% 6% 9% 9
45-49 1,406 5% 5% 8% 8
50-54 1,178 4% 4% 6% 6
55-59 925 3% 3% 5% 5
60-64 745 3%
65-69 434 2%
70-74 260 1%
75-79 186 1%
80 and above 188 1%
Total 28,083 100% 65% 100% 100
1.8.3 Locale of the study

The proposed business will be sited at the area within

General Santos City. Thus, it will be conducted also within the

area of General Santos City. It was chosen to conduct this

study because of the improving economic growth and blessed

with abundant natural resources, the potential of Digital E-

Loading Vending Machine business will be more productive

due to the fast economy. Furthermore, lot of investors are

willing to invest because it is easy to adopt the environment of

the city.

General Santos City is one of the improving Cities not

only in Mindanao but also in other places, it has a potential to

compete with others, and this was the opportunity noticed by

the Researchers to established this kind of business, the site

is accessible and convenient to the costumers as it is located

in an area where people can easily get notice.

1.8.4 DATA GATHERING TOOLS

In getting the information from the respondents, the

researchers formulated an interview guide. Interview guide is

a formal written that contains questions about marketing,

 technical, management and organizations, financial and socio-

economic aspects, it is good advantage of providing an

interview guide to be clearly specify what the researchers

wants to question to the respondents. This will help the

researchers to have a more knowledge in this kind of business

and assess the needed data to fully recognize how feasible

the study is.

1.8.5 DATA GATHERING PROCEDURE

In gathering data of the study, the researchers used the

systematic procedure to get more information to gather from

the respondents. The researchers get permission to the

respondents to conduct the study that get through a formal

letter. Upon the consent, the interview was conducted with the

use of interview guide. The information was listed down and

backed up with those mobile phone recorders. The gathered

information was analysed band was used in the conduct of the

study.

1.8 Definition of Terms

 To make this study comprehensible, several terms are defined

operationally and conceptually.

Wireless communication is the transfer of information or power

between two or more points that are

not connected by an electrical

conductor. The most

common wireless technologies use

radio waves (Miller, 2018)

Vending Machines Electronic machine used to disperse

a product to a consumer after a

certain amount of money has been

put into the machine. Vending

machines are commonly used to

disperse beverages and snack items,

but in recent years companies have

introduced vending machines that

disperse other items, even including

electronic items such as digital

cameras or iPods (Bailey, 2015)

Prepaid shall refer to the type of mobile or

landline phone account that required

 owners to purchase load credit before

service are used ( Yap, 2016).

Chapter II

MARKET ASPECT

This chapter discusses the market-related aspects of the

proposed business. This identifies the service to be rendered, target

market, pricing, market program of the business. It targets to make a

research on the demand of the product and supply in order to

achieve the business’ target market.

2.1 Demand

The estimated market share is the estimated percentage of a

business that a business earns for a given time. This metric

indicates the size of a business about its market.

One of the study's objectives is to determine the estimated market

share of E-Loading Vending Machine. To find out, the researcher

surveyed respondents in General Santos City ranging in age from 15

to 59 years old.

2.1.1 Target Market

The proposed business is established to provide

services and product for everyone who wants to purchase the

product or avail it services. The main target of the proposed

business are those prepaid load retailers and consumers of

the residence of Barangay Dadiangas West, Barangay

Dadiangas North, and Barangay Dadiangas West. Moreover,

the proposed business caters not only the residence of the

particular area, but all prepaid load retailers of the whole

General Santos City as well.

2.1.1.1 Market Segmentation

The Market Segmentation of the proposed

business is divided into its homogenous subsets of

customers, where any subset may conceivably be

selected on the target market of the business by their

age and locality.

2.1.1.1.1 Demographic Segmentation

Demographic Segmentaion is the

presentation of a population in any geographical

area, such as age, gender, family, purchasing

behavior, and consumer preferences, or to

understand the company in any field, such as

size, sector, employees, and revenues.

Adulthood
Adulthood
13-17
13-17
Early Adulthold
Early Adulthold
Age
Age 18-29
18-29
Middle
Middle Adulthold
Adulthold
Mids 30s-
Mids 30s- 60s-
60s-
Low income
Low income
customer
customer
Demographic
Demographic Mid Income
Mid Income
Income
Income
Segmentation
Segmentation Customer
Customer
High income
High income
customer
customer
Elementary
Elementary
Students
Students
 School Students
Senior High
Senior High
School Students
School Students

Figure 2
2.1.1.1.2 Geographic Segmentation
Demographic Segmentation

Geographic segmentation divides the

market geographically into countries, states,

regions, towns, neighborhoods, or zip codes. The

primary goal of the business is to make a profit.

An ideal marketing strategy is needed to achieve

this aim. Marketers must understand the diversity

of each consumer and identify their needs across

market segments.
National Philippines
South
Geographic Regional Cotabat
o
Segmentation Barangay
Dadiangas West
General
Barangay
Local Santos
Dadiangas North
City
Barangay
Dadiangas South

Figure 3
Geographic Segmentation
 2.1.1.1.3 Behavioral Segmentation

Behavioral Segmentation looks at how and

when a customer decides to spend their money

on a product or service. It focuses on consumers’

shopping behavior, how they make their

Potenti
decisions, why they choose one product overal userthe
Intereste Ex -
d user
other, and how they feel about a product, Loyal
High Regula
Behavioural
company, involvement
or services ( Bennett, 2021). r user Not
Not Negative Loyal
Segmentation Interested
Negative
Low Opinion
involvement

Figure 5
Behavioural Segmentation

2.1.1.2 Market Size

Today majority of the population owns a mobile phone.

Since, the mobile industry in the Philippines is a huge

communication business wherein, most likely ten out of ten

people have their own cellphones and cannot live without,

because it is believed to be already a necessity rather than

luxury, then it is presume that the e-load retailing business is

also a good source of income opportunity.

The market of the business will be the residence of

Barangay Dadiangas West, Barangay North and Barangay

South of General Santos City with a total population of 28,082

as of 2015 and an annual growth rate of -1.79%, - 2.95%,-

2.84% according to the National Statistics Office.

The market size of “E-Loading vending machine” covers

individuals residing in the Barangay Dadiangas West with a

total population of 13,827, Barangay Dadiangas North with a

total population of 8,056 and Barangay Dadiangas South at a

total population of 6,. The total population of the sub-groups

as of 2015 is 28,082. The market size is summarized in the

table below.

Table No. 2
Estimated Market Share
Particulars Total
Population Ages 15-59 28,082
Less: Poverty Rate (21.6) 6066
Business Target Market Size 22,016
Percentage of Willing Respondent 94%
Market Size 20695
Less: Margin Of Error (10%) 2070
Adjusted Market Size 18626

The above table shows the computation of the total

market size of the proposed business. The researcher added

 the total population for Barangay Dadiangas West, Barangay

Dadiangas South and Dadiangas North in is 28,082. The

business target market is calculated by deducting the poverty

rate of 21.6 according to PSA. Then, it is multiplied by a

number of 94% willing respondents. The percentage of willing

respondents is computed using the survey that was conducted

among 100 respondents. The 94 individuals are interested in

the business if it will be established. The researcher set a 10%

margin of error to come up with an adjusted market size of

18,626.

FRE-QUENCY

NUMBER OF WILLING IN A YEAR

PARTI
PERCENTAGE AVERAGE FREQUENCY
RESPONDENTS
CULA

RS

SMAR TALK N’ SMAR TALK SMAR TALK

GLOBE SUN
T TEXT GLOBE SUN GLOBE SUN
(39/94) (1/94)
(30/94) (24/94) T N’TEXT T N’TEXT
Once a

week 21 18 1 7 54% 60% 0 29% 52 28 31 1 16

Twice

a week 9 6 0 13 23% 20% 100% 54% 104 24 21 0 56

Thrice

a week 1 0 0 0 2% 0 0 0 156 3 0 0 0

Once a

month 8 6 0 4 21% 20% 0 17% 12 3 21 0 2

TOTAL - - - -
39 30 1 24 58 73 1 74

Table 3
 Average Frequency

It shows that 21 out of 39 respondents are willing to

purchase the Globe Product once a week. This is then

multiplied by 52 days to get the average total number of

persons in a year that will purchase the globe product every

day. There are also 9 respondents who are willing to purchase

the globe product twice a week and 1 respondent thrice a

week. 8 respondents are willing to purchase the product once

a month. The total average number of respondents in a year

that are willing to buy the product is 58.

There are 30 persons who are willing to purchase the

smart product. As the table shows, 18 of the 30 respondents

are willing to purchase the smart product once a week. This is

then multiplied by 52 days to get the average total number of

persons in a year that will buy the smart product every day.

There are also 6 respondents who are willing to purchase the

smart product twice a week, no respondents for thrice a week,

and 6 respondents is willing to purchase the smart product

once a month. The total average number of respondents in a

year that are willing to buy the product is 73.

The table shows that there are only 1 person who are willing

to purchase the sun product. This ratio is then multiplied by 52 days

to get the average total number of persons in a year that will

purchase the product every day. The total average number of

respondents in a year who are willing to purchase the product is 1.

There are 24 persons who are willing to purchase the

Talk N’ Text product. Out of the 24, seven persons are willing

to buy the product once a week. The percentage is then

multiplied by 52 days to get the average total number of

persons in a year that will purchase the products every day.

There are also 13 persons who are willing to purchase the

product twice a week, no respondents for thrice a week and 4

persons are willing to purchase the product once a month. The

total average number of respondents in a year who are willing

to buy the product is 74.

2.1.2 Past Demand Pattern Evaluation

In an economic marketplace, demand trend assessment

analyzes consumer and demand data to help forecast demand

over multiple time horizons. Since the proposed company is

new to the market in the study area, there is a strong demand

for "E-Loading vending machine"

2.1.3 Demand Projection

Table 4
 Annual Market Demand

Adjusted Market Size 18,626

Multiply: Average frequency in a year per service 206
Market Demand 3,836,956.00

Computation of the Total Demand was based on the

survey conducted to a total of 100 respondents of General

Santos City.

In table No. 4, the adjusted market size which was

computed in table No. 2 is multiplied to the annual load credits

which was computed and shown in table no. 3.

2.2 Supply

Supply of E-loading vending machine’s primary existing

players is the average number of persons that they can

accommodate. Identifying the supply of the primary existing players

is significant since it will determine the free market of the proposed

business.

The E-loading machine has no direct primary existing players

in General Santos City. Therefore the total demand of “E-loading

vending machine in the city is free market.

2.2.1 Competition
 This section shows the competition of the each of the

stated services in the market particularly in General

Santos City.

Direct Competitors

E-Loading Vending Machine in General Santos City has

no direct primary existing competitors.

Indirect Competitors

Since the proposed business is an unmanned product

the indirect competitors are those e-loading retailers and

wholesalers around General Santos City.

2.2.2 Projects Capacity

Table 5
Annual Capacity of E-Loading Vending Machine (New Normal)
Particulars Total
Total minutes of operation per day (24 hrs) 1,440
Divided by Minutes to Cater per Customer 3
Total Capacity per day 480
Multiplied by No. of Machine 2
Total No. of Order per Day 960
Annual Capacity 345,600
Practical Capacity 80%
Estimated Annual Capacity 276,480
New Normal Rate 50%
New Normal Annual Capacity 138,240

The E-loading vending machine will be open for 24 hrs

with an equivalent of 1,440 minutes operation per day. The

proposed business estimates 3 minutes to cater each

customer. Therefore, the proposed business estimates to

cater 480 customers a day multiplied by the number of the

operating machine which equivalent to 960 total number of

order per day. An annual capacity 345,600 multiplied by the

practical capacity of 80%.But considering all factors for the

capacity of the vending machine, an allowance of 50% is set

by the researcher as the new normal percentage of capacity

for the proposed business. Hence, the estimated annual

orders that the proposed business can supply is 138,240.

2.2.3 Supply Projection

Supply of E-Loading vending machine primary existing

players is the average number of persons that the machine

can accommodate. Identifying the supply of the primary

existing players is significant since it will determine the free

market of the proposed business.

The E-loading vending machine has no direct primary

existing players in General Santos City. Therefore, the total

demand of E-Loading vending machine in the city is free

market. Thus, supply for this kind of service is produced only

by the proposed business.

2.3 Demand Supply Analysis

2.3.1 Estimated Market Share

Estimated Market Share represents the percentage of

an industry or market’s total sales that is earned by a

particular business over a specified period of time. The market

share indicates the size of the proposed business within its

market.

Finally, the estimated market share is presented on the

table below to determine the proposed business’s share in the

demand pie.

Table 6
Market Share
Estimated Market Share
Annual Capacity 138,240
Divide: Annual Market Demand 3,826,956
Estimated market share 3.61%
Free Market 96.39%

Table No. 6 above shows the computation of estimated

market share of the E-loading vending machine. It was

computed by dividing the new normal annual capacity of

138,240 to annual market demand 3,826,956. The estimated

 market share of the E-loading vending machine is 3.61%

which equivalent to a 96.39%.

3.61%;
4%

96.39%;
96%

Estimated market share Free Market

Figure 6.
Market Share

The blue area in the graph represents the free market

which composes the 96% of the graph. On the other hand,

EVM E-LOAD vending machine composes the remaining 4%.

2.3.2 Free Market

As a final point, for the demand and supply analysis, the

computation of the E-loading vending machine market share is

shown on the table below. The proposed business in General

Santos City has no direct competitor. Hence, the total demand

of E-loading service in General Santos City is free market.

Table 7
Demand and Supply Analysis
  
Total Demand (table 3) 3,826,956
Supply 0
Free market 3,826,956

2.4 Pricing

One of the components of marketing which contribute to a

large amount in achieving of the firm’s sales and profit goals is the

pricing strategy. To achieve the main objective of the business,

which is to gain profit, the pricing strategy must be scrutinized and

well computed to possibly come up with quantifiable and profitable

result for the operation of the business.

The pricing arrangement of the proposed Digital E-Load

Vending machine is based on the survey conducted by the

researcher that was distributed to 100 respondents within General

Santos City with the aim of getting the preferred and reasonable

price for the service to be rendered. Based on the survey, there are

44% who usually purchases 10.00 – 50.00 load credits who has an

equivalent service charge of 1 pesos. There are 39% who usually

purchase 51.00 – 100.00 and also there are 5% who usually

purchase 101.00 – 150.00 load credits with the same amount of

service charge of 2.00. Also, there are 5% who usually purchase

151.00 – 300.00 load credits that has an additional charge of 5.00,

and lastly there 3% who usually purchases 301.00-500.00 load

credits with an additional service charge of 10.00.

Table 8
Pricing Strategy
Load Credits Service Charge
10.00 - 50.00 2
51.00 - 100.00 2
101.00 - 150.00 2
151.00 - 300.00 5
301.00 - 500.00 10

2.5 Marketing Program

2.5.1 Promotion Stategy

In order for the proposed business will be known in the

industry, it should be publicized and will create a strategies

that will catch the attention of customers. The proposed

business will be using advertising and sales promotion.

Table 9
 Promotion Strategy
Type of Cost Service Provider
Advertisement
Flyers and Leaflets 2,500 Standout Print and
Design
Tarpaulins 6,000 Tarpaulin printing
press of B-Ads
Online Advertising 0 Facebook, Instagram,
Twitter

Table 9. Promotion Strategy

Chapter III

This chapter shows the technicalities and operation flow

structure of the business. It involves sorts of equipment, materials,

structure plan and also the source of the supplies needed by the

business. These are the techniques and methods used by a

business for it to provide services. This chapter also discusses the

plant size and structures of the proposed business in order to

interpret clearly the service and operation to be render by the

business.

3.1 Raw Materials

Raw Materials Unit Measurement Cost per unit Supplier

₱
Microcontroller 4 inches 250.00 diymore66.ph
GSM unit 2.5 cm x 2.3 cm ₱ yunnuo.ph
 96.00
₱
Coin Feeder Package 125x124x66mm 474.00 hottoppe.ph
₱
Bill Acceptor 4x5 9,599.00 tirso19 shop
₱
Power Supply Machine 150x86mm 4,660.00 sunshine8.ph
₱ JJ steel and
Chassis 12.4x20.6 inches 5,000.00 equipment
₱ newtrend 3C
LCD 10 inches 2,850.00 electronics

Table 10. Raw Materials

3.2 Technical Process

This section discusses the information for the materials needed

in the operation of the business. It shows how the service is to be

provided, how much will it cost to provide the service, where to

provide services and the equipment to be used. This technical

process discusses the requirements and activities to conduct the

service well.

3.2.1 Service Flow

The proposed business is an E-Load Vending Machine that

engaged in providing the customer a good quality product.

The figure below shows the process flow on how customers

will avail the products of the proposed business.

Select a Enter your Choose your Enter your Verify your details
service mobile network/service desired and insert your
number amount money
 Figure 7. Service Flow

The customer may select their desired product by clicking

through the digital screen of the machine. Next, the customer will be

entering their respective mobile number, chooses their desired

networks the customer may choose to these following networks:

Globe, Smart, Sun, Talk N’Text. After that, the customer may choose

the desired amount for that particular service, and the customer may

verify its details before inserting their money.

3.3 Business Location

Location Analysis illustrates the design and the arrangement of

the proposed business. E-Loading Vending Machine will be located at

RD Plaza Building, Barangay West, General Santos City. The figures

of vicinity and location map will present

3.3.1 Location Map

Location map is typically a simple map used in

cartography to show the location of a particular geographic

area within its larger and presumably more familiar context. In

this map, the location of the EVM E-Loading is clearly

indicated and it will help the customers to locate it, in a

convenient way. The location is accessible since it is

specifically located near Plaza, School, Mall and Church and

other establishments.

The figure below shows where the proposed business

located around General Santos City.

Figure 8. Location Map

3.3.2 Lay Outs

Figure 9. Vending Machine Floor Plan
Figure 10. Side

View
 Figure 11. Front View

The pictures presented above are the actual structure of

the vending machine. It offers prepaid load products like

Globe, Smart, Sun and Talk N’ Text. It can provide unlimited

prepaid load credits and accepts any paper and coin bills. It

has a microcontroller, a small processor core, memory and

integrated circuit containing a processor core, memory, and

programmable input/output peripherals. This include the

sensing of the reception of the genuine currency, deciding the

amount of prepaid load to be deliver and instructing the

electrical motor to deliver exactly the amount of prepaid load.

3.3 Capital expenditures, Sources, Estimated Cost, and contracts

Capital expenditures

Schedule 9

E-Loading Vending Machine

PRE-OPERATING EXPENSES

  Cost Total

Supplies expense 330.00 330.00

Permits and Licenses  

Business Location Clearance 75.00  

Fire Safety Clearance 459.60  

CENRO 500.00  

SEC Registration 500.00  

Brgy. Clearance 800.00  

Community tax 500.00  

Table 11. Permit Fee 1,500.00 4,334.60 Pre-

Miscellaneous Expense   139.94
operating Total   4,804.54

Expense

   
Investment Cost

Cash 265,288.16

Machine 30,000.00
Pre-operating
Expenses:  

Permits and Licenses 4,334.60

Miscellaneous Expense 137.24

Supplies Expense 240.00

TOTAL COST 300,000.00

   
 Contracts

This section discusses the capital expenditures of the

proposed business. Capital expenditures are funds used by a

company to acquire, upgrade, and maintain physical assets

such as property, plants, buildings, technology, or equipment.

3.4 Machineries and Equipment

This portion would detail all the necessary machines

and equipment to be used before and during the service

activities.

3.4.1 Machine and Equipment

Items Description Price Quan Estimat Supplier

and tity ed
Specification Useful
Life
It is designed to
Digital Eload be unmanned 8,000 1 10 Kiosk
Vending and operational years Company
Machine 24/7. It uses the
latest GPS
technology to
ensure fast and
efficient E-load
to its end user.
 Table 12. Machines

The table above shows the needed machine of the proposed

business. The machine will be purchased at Kiosk Company with a

price of 30,000

3.5 Furniture and Fixtures

Aside from equipment and machineries, Furniture and fixtures

are also needed in operating the proposed business. The furniture

and fixture used are available in all possible suppliers. These will be

acquired in cash basis.

Items Quantity Price Specification Supplier

LED Backlit 1 The LED light sheet Shopee
Panel 1,000 panel backlit has low
power consumption,
smaller heat
generation, high
brightness, long life,
low failure rate and
simple maintainance

Table 13. Furniture and Fixture

3.6 Supplies
Item Description and Price/Un Estimated Supplier
Specification it Annual
Capacity
Usage
Microcontroller A device which 250.00 1 Diymore66.ph
integrates a great
number of the
company
components of a
microprocessor
system into a
single chip (IC)

GSM unit Is a wireless 196.00 1 Yunnuo.ph

module that
works with GSM
networks. A
wireless module
behaves like
Hayes Module
compatible dial
up modem.

Coin Feeder A coin feeder 474.00 1 Hottoppe.ph

mechanism for
transporting
coins from a coin
hopper is
disclosed.
Bill Acceptor It means that a 9,599.00 1 Tirso19.ph
device that
accepts and read
cash by
denomination in
order to
accurately
register customer
Power Supply Is an electrical 4,660.00 1 Sunshine8.ph
Machine device that
supplies electric
power to an
electric load.

Chassis The steel outer 5,000.00 1 JJ Steel and

shell that holds
all internal equipment
components and
which determines
the machines
overall size and
shape.
LCD Is a type of flat 2,850.00 1 Newtrend
panel display in
which uses liquid electronics
crystals in its
primary form of
operation.

Table 14. Supplies

3.7Utilities

Utilities are major public services which include water,

electricity, and gas. These are usually provided by a government-

regulated company. In the proposed Digital E-Load Vending

Machine, utilities are essential for the operation to serve customers.

3.7.1 Electricity Consumption

 The electricity supply will be provided by South

Cotabato Electric Cooperative (SOCOTECO II), it is vital in

daily operations and it will be used for the machine to operate

continuously.

3.7.1.1 Production Use

Machine KWH Annual Usage

Equipment (hours)
Name
Vending Machine 12KhW/per 1,464
month
Table 15. Production Use

3.8 Waste Management

Waste management involves activities that deals with the

waste before and after it is produced, including its minimization,

transfer, storage, separation, recovery, recycling, and final disposal.

The E-loading vending machine will provide trashcans separating

bio and non-bio degradable. Wastes will be collected by the City

Management unit every two days after pick up, and will be

segregated as to bio-degradable and non-degradable. Proper waste

disposal must be observed and check to ensure proper sanitation,

and promote clean and healthy atmosphere.

3.8.1 Hazardous Waste Disposal

 As stated in the City Ordinance 12 series of 2008 of

General Santos City, in accordance with Republic Act (RA)

No. 9003 otherwise known as Ecological Solid Waste

Management Act of 2000, provides for an ecological solid

waste management program, hazardous waste refers to solid

waste or combination of solid waste which because of its

quantity, concentration, or physical chemical, infectious

characteristics may cause, or significantly contribute to an

increase in mortality or an increase in serious irreversible, or

incapacitating reversible, illness. Thus, these wastes shall be

collected by the garbage collector and to be disposed of in the

disposal facility of the City provided. Since the proposed

business is a private entity, the collection may be charge with

tipping fees for the disposal of waste. The local government

unit sets schedules in collecting hazardous wastes.

3.8.2 Non-Hazardous Waste Disposal

As stated in the ordinance 12 series of 2008 of General

Santos City, in accordance with Republic Act (RA) No. 9003

otherwise known as Ecological Solid Waste Management Act

of 2000, provides for an ecological solid waste management

 program, non-hazardous wastes refers refer to all discarded

household, commercial waste, non-hazardous institutional and

industrial waste, street sweepings, construction debris,

agricultural waste, and other non-hazardous/nontoxic solid

waste. These wastes shall be collected by the garbage

collector and to be disposed of in the disposal facility of the

City provided. Since the proposed business is a private entity,

the collection may be charge with tipping fees for the disposal

of waste. The local government unit sets schedules in

collecting hazardous wastes.

Chapter IV

Organization and Management

This chapter tackles about the form of business organization,

organizational structure, manpower requirement and job

specifications and qualifications of the employees for the operation

of the business. This contains the personnel’s’ duties and

responsibilities as well as their salary structure. Also expounded

here are the pre-operating activities of the business and the time

table or the Gantt chart.

4.1 Form of Business Organization

“Digital E-Loading Vending Machine” is a service oriented

business in the form of partnership in which the owners will be called

partners who binds themselves to contribute money, property or

industry to a common fund, with the intention of dividing the profit

among themselves. The partners will shoulder all the expenses and

the capital needed for the business. The researcher of this study

chose this form of organization since it could easily be formed.

Moreover, better management could be attained considering the

combined expertise of the partners, greater capital could be raised

unlike in a sole proprietorship and any loss incurred could be

distributed to the partners.

This form of business organization has its advantages which

have, bigger capitalization can be raised, better management can be

attained considering the combined expertise of the partners, such

partners are exempted from payment of income tax, and the interest

of one partner cannot be transferred to a new partner without the

consent of other partners. Aside from these advantages, partners

liability in partnership organization is unlimited in the sense that the

partnership creditors may run after any assets and property in

payment of the partnership debts. Hence, one of the partners defray

all liabilities of the partnership, a partnership is entitled to be

reimbursed by the other partners for their respective share therein.

4.2 Organizational Structure

Organizational structure according to Grifftin (2015), it is the

way that an organization arranges people and jobs so that its work

can be performed and its goals can be met. Organizational structure

enables the distribution of authority, duties and responsibilities

among the memebers of the organization. A flat organizational

structure will be used by he proposed E-Loading vending machine.

The Figure on the next page shows the organizational chart of

E-Loading Vending Machine in flat organization, authority,

responsibilities and duties are clearly determinable. All the decision-

makings will be centralized to the partners and the manager for the

implementations. The authority starts from the partners passed to

the manager and to the lower level of organization.

 Manager/ Owner

(1)

Secretary Finance Operators/

Technician

Figure 12

The Organizational Structure

4.3 Personnel Qualifications

In every business firm, before starting the business operatin it

is very important to consider the selection of its human resources or

manpower. Hiring the best employees has a great impact to the

success of a business. Thus, their specific functions, duties and

responsibilities should be properly stated and clarified.

The table on the next page shows the detailed description and

qualification of the required workforce.

Personel No. of employess Qualifications

Manager 1 The owner itself

Operator’s 2  Good practical skills and

Technician basic knowledge of
machinery (E-load &
Computer)
 Male/Female, 20 to 45 years
old
  Trustworthy
 TESDA graduate ( any
computer related course)
 NC3 Passer

Secretary Fianance 1  Good practical skills and

basic knowledge of
machinery (E-load &
Computer)
 Male/Female, 20 to 45 years
old
 Trustworthy
 Basic Knowledge for financing

Total 3

Table 16
Personnel Requirements and Qualifications

4.4 Personnel Duties and Responsibilities

Personnel management is primarily concerned with human

resource of organization. It is a significant part of management

concerned with the organization.

The partners will be responsible for setting objectives and

strategies as well as the planning and controlling of the proposed

business. Furthermore, all decision that requires significant cash

outlays particularly, sourcing of funds and business innovations and

expansions will be coming from the partners. The partners also will

be responsible for promoting the business. The table below will show

the duties and responsibilities of every personnel of the said

proposal.
4.4.1. Manager (1)

The following are the duties and responsibilities of the

manager:

1.Manages the day-to-day operations of the proposed

businessn and at least 8-hours of duty..

2. To set a good example to the staff with

regards to punctuality, attendance, attitude

and hygiene.

3. To carry out the task regarding recruitment

needs, and conduct interviews as required.

4. To train new staff in methods and procedures

5. To implement disciplinary procedures

necessary, and report all serious breach of

discipline to the owners.

6. Responsible to make the decision in terminating employee

unable to satisfactorily perform the job or who blatantly breaks

company rules.
 7. Responsible in resolving conflict, motivating employees,

speaking to the public in behalf of the company and preserving

customer relationships.

8. Responsible to the overall success of the company.

4.4.2 Operators/Technician (2)

1. Checks and inspects the machine if it is ready for the use of

customers.

2. Maintains inventory of the prepaid load

3. Monitors all systems to insure appropriate and safe

procedures are followed.

4. Responsible for reporting about the defects of equipment,

tools, and insufficient product.

4.4.3 Secretary Finance

1. Responsible for answering calls, taking messages and

handling correspondence.

2. Typing, preparing and collating reports.

3.Managing Data Base.

4.5 Personnel Salary Structure

 Salary is a form of periodic payment from an employer to an

employee, which may be specified in an employment contract. It is

contrasted with piece wages, where each job, hour or other unit is

paid separately, rather than on a periodic basis.

The E-loading Vending Machine personnel’s salary is based

on the minimum rate of the locality of General Santos City,

considering the Labor code.

Personnel Number of Gross Pay Total Gross

employees Monthly Pay
Operators/ 2 20,000 20,000
Techinician
Secretary 1 10,000 30,000
Finance

Table 17

Personnel Monthly Structure

The table above shows how much each employee may

receive in return for their services. Salaries may vary according to

each position an employee holds in the establishment.

4.6 Employment Process

 1. Applicant will be passing an application form or resume with 2x2

colored photo to the administrative manager.

2. The administrative will analyze the contents of the resume and will

call the applicant for the initial examination if interpreted to the

satisfactory.

3. The owner will provide an initial exam which contains basic and

abstract questions.

4. If the applicant passed the final exam, he will be immediately

interviewed for final screening.

5. After the final interview, if passed, will be given the list of

requirements to be complied for a specific period of time.

6. After the compliance of all requirements, the applicant will be will

be scheduled for orientation together with other applicants.

7. After the applicants are oriented, they will be trained for one week

regarding the operations of the business applying the basic

principles of the company.

4.7 Personnel’s Schedule

 Table 18
Employee Schedule
  Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Schedule            
Manager  9AM-5PM 9AM-5PM 9AM-5PM 9AM-5PM 9AM-5PM 9AM- 9AM-5PM
5PM
Operators/Technicia  9AM- 5PM 9AM-5PM 9AM-5PM 9AM-5PM 9AM-5PM 9AM- 9AM-5PM
n 5PM
Secretary Finance 9AM-5PM 9AM-5PM 9AM-5PM 9AM-5PM 9AM-5PM 9AM- 9AM-5PM
5PM

The table 18 shows the shifting schedule of the employees. The

Manager is always available from 9 am to 5 pm, and the availability of the

operators’ technician and secretary finance of the proposed business will

start from 9am-5pm for any possible internal and external damages occur

by the machine, installation and upgrades by the operators technician.

4.8 Personnel Policies

4.8.1 Orientation

It is a part of the process of assimilation of a new employee

and a part of a new worker’s socialization process in a company or

any organization. In other words, an orientation program is a part of

orienting new employees to their jobs and workplaces.

The orientation program includes:

1. Brief history and operations of the company.

2. The company's organization structure.

 3. Policies and procedure of the company.

4. Products and services of the company.

5. Explain employment agreement terms.

6. Safety measures.

7. Introduce new hires to all teams.

8. Benefits and services of employee.

9.Explain how to use the company’s equipment.

10. Opportunities for training, promotions transfer etc.

11. Suggestion schemes.

12. Rules and regulations.

Placement takes place through putting the right man on the

right job. This placement may be on probation or permanent

employment if candidate successfully completed the same. The

significances of placement are as follows:

1. It enhances employee morale.

2. It helps in employee turnover reduction.

3. It aids in lessening absenteeism.

 4. It facilitates in accident rates reduction.

5. It avoids misfit between the candidate and the job.

6. It assists the candidate to work based on the preset

objectives of the organization.

4.8.2 Personnel Records

Often treated as a minor task that requires little focus of

attention, record management is an important practice in any

organization. It is handled by employer of the proposed business

which makes certain that any and all information and company is up

to date, accurate and is compliant to all laws and regulations

Philippines. The Employee 201 is a Personal Employment Record.

The proposed company shall have 201 file per employee that

contains personal information of an employee. The following should

be included in a 201 file:

1. Employee’s resume

2. Employee’s past credentials

3. Employee’s medical records

4. Employee’s job description

5. Other related legal documents

4.8.3 Notice of Disciplinary Actions

 Disciplinary actions are strive to provide disciplinary action to

be positive and corrective in nature, whenever possible. The severity

of the discipline administered shall be no greater than necessary to

achieve the desired result. The following are forms of disciplinary

actions which the employer of the proposed business will apply

provided that due process has been practiced first.

1. Verbal Reprimand- verbal warning that a supervisor or

manager gives to an employee as a means of rectifying some

incident of inappropriate conduct or behavior

2. Written warning – is a written notification to the employee

concerning unacceptable performance or conduct, the

corrective action necessary, the consequences of failure to

bring about corrective action. This is usually the second step

for a minor violation.

3. Final written warning - A final written warning can be given

after verbal and/or written warning has not succeeded to attain

the preferred improvement or if the warning justifies it

irrespective of the absence of earlier warnings.

4. Suspension – Suspension is where an employee continues to

be employed but does not have to attend work or do any work.

 5. Dismissal/Termination - Dismissal may take place with

notice or summarily notice depending on the gravity of the bad

behavior. If the misbehavior is of such a nature that dismissal

is acceptable by law, no notice shall be given.

4.9 Pre-Operating Activities

Pre-operating activities are activities that will take place before the

formal operation of the business. The time intended for each activity is

based on surveys and interviews .To come up with effective time schedule

to avoid unneccesary expenses, the researcher conducted surveys and

interviews, and then based the business time line on it.

4.9.1 Project Feasibility Study

Under this activity, the prospective owners will be guided to

study whether the proposed business will be beneficial to both the

customer and the management and if the venture would be

profitable. This study will include the selection of the location where

the prospective owners will look for the proper and suitable place to

set up the proposed EVM E-loading. This activity will take two

months to accomplish because all aspects of the business would be

analyzed such as market, technical, organizational, financial and

socio-economic.
4.9.2 Selection of Location

The prospective owners will look for the proper and suitable

place to set up the proposed E-Load Vending Machine. The

selection of location will consider the following factors:

1. Accessibility of the selected location to potential customers.

4.9.2 Permits and Licenses

For operating legally, business permit and licenses are

required in most jurisdiction for pre-existing structure. The proposed

E-loading vending machine must be registered at specific

government agencies. Hence, the prospective partners must secure

the following:

4.9.2.1 Business Permit

The process below is the revised business permit

application process required by the City Mayor’s Office- Business

Permits and Licenses Division, and to be registered in such

office.

Step 1 Secure forms from City Mayor’s Office (CMO) –

Business Permit and Licenses Division

(BPLD)/ BPLD lounge.

 Step 2 Submit to BPLD the duly filled-up forms:

1. Application form

2. Barangay Clearance

3. Community tax certificate

4. SEC

5. BIR Annual Registration

6. PAG-IBIG

Step 3 Proceed to City Treasure’s Office to pay

appropriate dues.

Step 4 Proceed to Bureau of Fire Protection (BFP) to get

fire safety inspection certificate (FSIC).

Step 5 Return to CMO- BPLD to submit all documents

for preparations of business permit.

In addition, the following requirements must

also be complied.

1. SSS Clearance

2. Phil health Clearance

3. Pag-ibig Clearance

4. CENRO Clearance and official receipt

4.9.2 Acquisition of Supplies and Equipment

Fifteen (15) days before the promotional activities, the

prospective owner can scout for the materials, supplies, and

equipment to be used in the operation of the business as presented

in the Technical Aspect of the study. The equipment will be

purchased from the suppliers negotiated and agreed upon by the

partners.

4.9.3 Hiring and Orientation of Personnel

This activity is viewed by the researchers as one of the most

crucial parts of establishing a business since the employees are

considered to be the hands of the organization. They are responsible

for the success and failure of the proposed venture. The prospective

owner will look for the most efficient and hardworking personnel. The

manager is hired first, and thenhe will be the one responsible in

selecting the most qualified crews by conducting examination and

interview. The owner will organize training beforehand to orient and

train them on their jobs before they will be put in the actual practice.

The hiring requirements may include but not limited to the

following:

1. Application Letter

2. Completely filled-up resume or bio-data for the lower

personnel

3. Photocopy of authenticated birth certificate

 4. College Diploma for graduates and Transcript of

Records for undergraduate applicants

5. Clearances: Purok, Barangay and Police

6. Passed the job examination provided by the proposed

entity.

4.9.4 Promotional Activities

Promotional activities will start two fifteen (15) days before the

operating day. Advertisement on automobiles will end after 20 days

from the start of operation.

4.9.5 Start of Business Operation

After finishing all the requirements and had settled the

necessary activities, the operation for the business will start. The

following activities have time alloted that are based on proper and

surveyed information from different e-loading center within General

Santos City.
4.10 Project Time-table

The time table below shows the proposed time schedule that

includes all pre-opearting activities prior to the commencement of the

business operation. The time alloted will be based on actual business

scenario.
 Table 19
Projected Time Table

Chapter V

FINANCIAL ASPECT

This chapter determines the profitability level of the project. This also

involves a thorough coverage of financial information of the business. It

covers detailed information on the total project cost, initial capital

requirements, source of funding, financial statements and financial

analysis.

5.1 Financial Forecast

This section represents the financial assumptions, the investment

cost, and the financial statement. It also details the calculations,

assumptions and methodology used as basis for the projections of the

expected financial performance of the proposed business.

5.1.1 Financial Assumptions

The following are the financial assumptions to be implemented

by E-loading vending machine regarding financial related issues of

the entity. Financial assumptions and projections are critical

components of all business plans. They include revenue, expense

and other assumptions. These are based on the data gathered by

the researchers from interviews in their competitors in the business

industry.

5.1.1.1 Revenue

This portion of the study states the financial assumption

with regards to the computation of the revenues for the

proposed business.

1. Sales will increase by 20% annually starting from its

second year of operation.

2. All sales will be on cash basis.

3. Load Inventory will increase 20% each year.

5.1.1.2 Expenses
 This portion of the study states the financial

assumption with regards to the computation of the

revenues for the proposed E-Loading Vending Machine

1. All expenses are on cash basis other than depreciation

expense.

2. Communication Expense base on plan.

3. Transportation Expense will be 3% of Sales.

4. Permit and Licenses will be 2 % of sales

5. The advertising & promotion expenses and light expenses

will increase by 10% each year

6. Pre-operating cost will be expensed as incurred.

5.1.1.3 Others

This portion of the study states the financial

assumptions that may affect the other sections of the

projected financial statements of the proposed “E-Loading

Vending Machine”.

1. Philippine Peso will be used as the currency in preparing

the projected financial statements of the proposed

business.

2. The proposed business is service-oriented and will be in a

form of partnership.
 3. The partners will invest PhP150, 000 each or a total of

PhP300, 000 in order to start the business.

4. Purchases for the first year of operation will be based on

per number of orders of the customers derived from the

practical capacity. Purchases will increase by 3.96% based

on the inflation rate after the first year of operation.

5. Ending inventory will be 10% of the supplies available for

use for every year.

6. Each partner is allowed to withdraw PhP100, 000 each

year starting the first year of operation.

7. Income taxes will be paid every first month of the

succeeding quarter.

8. For income tax purposes, the taxpayer is assumed to be

single with no qualified independents.

5.2 Initial Capitalization

The total capitalization of E-loading vending machine will be

Php 300,000.00. This investment will be used in the acquisition of

machineries and equipment, supplies, furniture and fixtures, and

payment for the construction of building and other expenditures

necessary for the establishment of the proposed business.

Presented below is the table of investment cost of E-loading vending

machine.
 Table 20
Investment Cost
Cash 265,288.16
Machine 30,000.00
Pre-operating expenses 4,711.84
TOTAL COST 300,000.00

5.3 Sources of Financing

5.3.1 Capital Structure

The capital structures to be utilized by the proposed

business is working capital. It is in the form of cash provided

by the parents of the company that will suffice the daily

expenses of the business operation.

5.3.2 Cost of Capital

Cost of capital is a required return necessary to make a

capital budgeting project to the proposed business. This

typically encompasses the cost of both equity and debt,

weighted according to the proposed business’s preferred or

existing capital structure.

5.4 Projected Financial Statements

This section provides information about the financial

statements of the proposed “Digital E-Load Vending Machine”.

Financial statements provide information that is useful to a wide

range of users. These are Balance Sheet, Income Statement, Cash

Flows and Changes in Partners Equity. In line with this, a summary

of these statements are presented in the next page and its detailed

information are shown in exhibit section.

5.4.1 Income Statement

This section shows the Financial Performance of the

proposed E-loading Vending Machine. Statement of Financial

Performance provides information about the summarized

earned revenue and expenses incurred in a particular period

of time to measure the profitability of the business.

The table below shows the summary of Projected

Statement of Financial Performance of the proposed business.

1,200,000.00

1,000,000.00

800,000.00

600,000.00

400,000.00

200,000.00

-
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
(200,000.00)

Figure 13

Summary of projected statement of financial performance

The Statement of Financial Performance shows a net

income after tax of Php 118,731.31 at the end of the second

year, it increased which resulted to a net income of

Php204,871.15. At the end of the third year, it shows a an

increase which resulted to Php234,171.34. By the end of the

fourth year, the net income of the proposed business is

Php257,034.42. The net income at the end of the fifth year is

also increases at Php286,773.70.

5.4.2 Balance Sheet

₱600,000.00
₱500,000.00
₱400,000.00
₱300,000.00
₱200,000.00
₱100,000.00
₱-
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

This section shows the Balance Sheet of the proposed

business. Balance Sheet provides information about the

summarized earned revenue and expenses incurred in a

particular period of time to measure the profitability of the

business.

Figure 14

Summary of Projected Statement of Financial Position

The summary shows that the assets, liabilities and

equity of the proposed business continue to increase. The

second year of operations resulted to a increase in the assets

of Php286,643.33. On the third year of operation, the assets

decreased by Php328,559.67. On the fourth year, the total

assets of the business have increased by Php391,106.38;

while Php487,010.96 increase at the end of fifth year.

 5.4.3 Statement of Cash Flows

Statement of cash flows provides information about the

cash receipts and cash payment of an entity during a period.

This section pictures out the cash flow activities, particularly

operating, investing and financing. It also shows the liquidity of

the firm in a given period of time. Aside from that it also

assesses the ability of the business to generate cash in order

to pay its obligations.

The table below shows the summary of Projected

Statement of Cash Flows of the proposed business.

₱500,000.00
₱400,000.00
₱300,000.00
₱200,000.00
₱100,000.00
₱-
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
₱(100,000.00)
₱(200,000.00)

Figure 15.

Summary of projected Statement of Cash Flows

 The Projected Statement of Cash Flows of the proposed

business shows a beginning cash balance of Php275,288.16

at Year 1 and an ending cash balance of Php 275,288.16 at

year 0 with a corresponding increase of Php 34,372.84 on the

first year of the operation.

5.4.4 Projected Statement of Changes in Equity

The statement of changes partners’ capital summarizes

the changes that occurred in owner’s equity. This explains the

changes in partners’ capital which results from earnings and

losses. It also provides on how the capital or fund has been

used.

The table below shows the Summary of Projected

Statement of Owner’s Equity.

₱250,000.00

₱200,000.00

₱150,000.00

₱100,000.00

₱50,000.00

₱-
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Figure 16
 Summary of Projected Statement of Partner’s Equity

The Projected Statement of Owner’s Equity shows that

at the end of the first year of operations, the partners have an

interest of Php107,009.74 each. At the end of second year,

the equity of each partner has Php109,445.32. At the end of

the third year, each of the partner has an equity of 126,530.98.

It increased to Php155,053.19 at the end of the fourth year

and increased to Php198,440.04 at the end of fifth year.

5.5 Financial Ratios and Analysis

Financial statement analysis shows the liquidity ratio, the

profitability ratio, the solvency or stability ratio and period,

discounted cash flow adequacy and investment analysis using the

payback period and internal rate of return methods in analyzing the

financial performance, position and cash flows of E-loading vending

machine for five years of operation.

5.5.1 Liquidity Ratios

 This helps the venture to assess on when firms are able

to pay-off its debts as they come due and still remain a viable

organization. It also requires the use of cash budget

5.5.1.1 Current Ratio

Current ratio indicates the extent to which current

liabilities are covered by the current assets expected to

be converted to cash in the near future.

Table on the next page shows the current ratio

analysis of the proposed “E-loading vending machine”.

600,000.00

500,000.00

400,000.00

300,000.00

200,000.00

100,000.00

-
Year 1 Year 2 Year 3 Year 4 Year 5

Figure 17

Current Ratio

The current ratio is computed by dividing the

current assets by the current liabilities. The table shows

 that E-loading Vending Machine has a decreasing

current ratio which indicates that it has does not enough

assets to pay its maturing obligations for five years. It

indicates that the said project business is not capable in

paying back its short-term assets.

5.5.1.2 Debt to Equity Ratio

This is a measure of a company's financial

leverage. It indicates what proportion of equity and debt

the company is using to finance its assets.

Table on the next page shows the debt to equity

ratio analysis of the proposed “E-load vending

machine”.

450,000.00
400,000.00
350,000.00
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
-
Year 1 Year 2 Year 3 Year 4 Year 5

Figure 18

Debt Equity Ratio

 The debt to equity ratio is computed by dividing

the total liabilities by the total equity. The figure above

shows that the proposed business has a high debt to

equity ratio. This means that the business is facing high

risks.

5.5.2 Profitability Ratio

Profitability ratio measures earnings in relation to some

base, such as asset, sales, or capital. It includes return on

investment and return on assets and return on total assets.

5.5.2.1 Rate of Return on Total Assets

Return on Total Assets indicates how profitable a

company is relative to its total assets. It gives an idea

on how efficient is the management at using its assets

to generate its earnings.

Table on the next page shows the rate of return

on total assets analysis of “E-loading vending machine”.

500,000.00
450,000.00
400,000.00
350,000.00
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
-
1 2 3 4 5

Figure 19
Return on Assets

The return on assets resulted to 46% for the first

year which means that the entity is efficient enough in

using their assets in earning profits. The second year of

operation resulted to a 75% return. The third year

resulted to a return of 76%; 71% for the fourth year; and

65% for the fifth year. If there is a decrease in ratio, it

should not be taken negatively. This is because of the

idle cash that the business has reserved for future

expansion.

5.5.2.2 Rate of Return on Sales

Rate of Return on Sales is used to evaluate an

entity’s operating performance. It indicates how much

 profit an entity makes after paying for variable cost of

production such as wages, raw materials and etc. (but

before tax).

The chart on the next page presents the rate of

return on sales analysis of E-loading Vending Machine.

1,200,000.00

1,000,000.00

800,000.00

600,000.00

400,000.00

200,000.00

-
Year 1 Year 2 Year 3 Year 4 Year 5

Figure 20
Return on Sales
The return on sales for the first year is 20%; 34%

for the second year; 37% for the third year; 38% for the

fourth year; and 41% for the fifth year. Increasing ratios

indicate that the profitability of the business is improving

as the years go by.

5.5.2.3 Rate of Return on Investment

 A performance measure used evaluate the

efficiency of an investment or to compare the efficiency

of a number of different investments. To calculate the

RIO, the benefit (return) of an investment is divided by

the cost of the investment; result is expressed as a

percentage or a ration.

The chart below shows the E=loading vending

machine return on investment.

600,000.00
500,000.00
400,000.00
300,000.00
200,000.00
100,000.00
-
Year 1 Year 2 Year 3 Year 4 Year 5

Figure 21
Return on Investment
The chart below shows that the E-loading vending

machine will have a high Rate of Return on Investment.

This indicates that the partners should expect for a

return on their investment.

The return of investment for the first year is 65%;

102% for the second year; 102% for the third year; 94%

for the fourth year; and 84% for the fifth year. This
 implies that the entity generates more profit out of the

investment. The equity increased over the 5 years since

the partners withdraw all the profit generated since they

contemplate on expanding business operations in the

future.

5.5.3 Leverage Ratios

A leverage ratio is any one of several financial

measurements that assesses the ability of the proposed

business to meet its financial obligation

5.5.3.1 Total Asset Turnover

1,200,000.00

1,000,000.00

800,000.00

600,000.00

400,000.00

200,000.00

-
Year 1 Year 2 Year 3 Year 4 Year 5

The asset turnover ratio calculates the total

revenue for every amount of assets a company owns. It

 measures the ability of a company to use its assets to

efficiently generate sales.

Figure 22

Total Asset Turnover

The figure presented shows that the business has

high total asset turnover indicating that it is generating

any more sales given its total assets. The proposed

business will have a good performance.

5.6. Capital Investment Analysis

Investment Analysis is key to any portfolio-management strategy. It

is the study of how an investment is likely to perform and how suitable it is

for a given investor. This section involves examining and assessing

economic and market trends, earnings prospects, earnings ratios and

various other indicators and factors to determine suitable investment

strategies.

5.3.1 Payback Period

The payback period is the number of years needed to recover

the investment. This criterion how quickly the project will return its
 investment. This period is referred to the time it takes for an

investment to pay for itself.

Annual Cash Flow Unrecovered Cost

Year 0 ₱ (300,000.00)
Year 1 226,326.78 (73,673.22)
Year 2 260,699.62 187,026.40
Year 3 306,456.84 493,483.24
Year 4 373,349.31 866,832.55
Year 5 471,824.61 1,338,657.16

5.7 Sources of Fund

To total investment will be obtained from the personal assets of the

prospective owners who will invest Php 265,195.46 each. It is assumed by

the researcher that the prospective partners have the capacity to provide

the investment need thus, no borrowings will be required.

 Chapter VI

Socio-Economic Aspects

This chapter discusses the effects of the proposed business in the

society and economy. To have a long and profitable life, a business should

look back for the welfare of the people in the society where it exists. The

proposed business should be responsible in its action toward the

environment. The business must consider how it can help for the

improvement of the city as well as the whole country.

6.1. Effects of the business to the Society

The social impact of a business is easy to identify but difficult to

measure, however, understanding the effects a business has on society is

vital in achieving sustainability. Any business is a risky endeavour with an

uncertain life expectancy. It has been, and should remain, a driver of

innovation, a creator of wealth and a harbinger of economic freedom.

6.1.1 Effects in the Government

Taxes are the lifeblood of the government and their prompt

and certain availability are an imperious need. A government cannot

continue to exist and operate without financial means. Businesses

greatly help in contributing taxes to support the government in

achieving its various economic and social objectives. This proposed

 business entitled Shoe Painting Business is foreseeable to generate

profit which is taxable, thus it can contribute to the taxes that will be

collected by the government. Moreover, the business is required to

pay various Local Taxes and Fees that will be used to support the

activities of the locals for its people.

6.1.2 Effects in the Household

Families and businesses have often been treated as naturally

separate institutions, but in reality, they are inextricably intertwined.

Such picture manifests that the institution of the family has

implications for the emergence of new business opportunities,

opportunity recognition, business start-up decisions, and the

resource mobilization process. Thus, the business is supposed to be

an eye-opener to the families to create business or support such

business through sending labor force or even entrepreneurs.

6.2 Effects of the Business to the Economy

According to Cambridge English Dictionary, economy is the system

of trade and industry by which the wealth of a country is made and used.

6.2.1 Effects in Employment

Businesses are means by which many people get their jobs.

Every families in the society needs money to survive, thus it requires

them to have a stable job. The proposed business could create a job

opportunities because it needs to produce and sell goods to

consumers. Business is made to accumulate profit and it opens

different kind of work to an individual. Without businesses, each

individual would create his or her own way of making a living. Thus,

businesses such as Shoe Painting Business are important because

they provide products, services and jobs. Without these things,

nations’ economy would be much smaller and weaker than they are.

6.2.2 Effects in the Market

The business is a potential player in the Gross Domestic

Product (GDP) as well as the Gross National Product (GNP) of the

Philippines. GDP is a measurement of all officially recognized final

goods and services produced within a country in a certain period

while GNP is a measure of a country’s economic performance, or

what its citizens produced and whether they produced these items

within its borders. Since the business will provide new opportunities

for a good investment, it will surely increase the said two economic

measurements. A good GDP and GNP signify a good standard of

living of a certain country.

 EXHIBITS

Projected Statement of Cash Flows

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Net income ₱ (4,711.84) ₱ 118,731.31 ₱ 204,871.15 ₱ 234,171.34 ₱ 257,044.42 ₱ 286,773.70
Add: Depreciation Expense 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00
Cash Income ₱ (4,711.84) ₱ 122,731.31 ₱ 208,871.15 ₱ 238,171.34 ₱ 261,044.42 ₱ 290,773.70

Operating Activities: (Increase)/Decrease

Increase in Supplies Inventory ₱ (17,280.00) ₱ 3,336.28 ₱ (150.11) ₱ (517.91) ₱ (574.60)
Increase in SSS payable ₱ 3,315.15
Increase in Philhealth payable ₱ 750.00
Increase in PAG-IBIG payable ₱ 600.00
Increase in Income Tax Payable 12,721.21 9,229.27 3,139.31 2,450.69 3,185.28
Increase in Vat Payable 28,200.94 12,936.14 4,605.70 3,906.27 5,090.93
Net cash Provided by Operating Activities ₱ (4,711.84) ₱ 151,038.61 ₱ 234,372.84 ₱ 245,766.23 ₱ 266,883.47 ₱ 298,475.30

Investing Activities: (Increase)/Decrease

Increase in Equipment and Machinery (20,000.00)

Net Cash Provided by Investing Activities ₱ (20,000.00)

Financing Activities: Increase/(Decrease)

Partners' Investment ₱ 300,000.00
Partners' Withdrawal ₱ (200,000.00) ₱ (200,000.00) ₱ (200,000.00) ₱ (200,000.00) ₱ (200,000.00)
Net cash Provided by Financing Activities ₱ 300,000.00 ₱ (200,000.00) ₱ (200,000.00) ₱ (200,000.00) ₱ (200,000.00) ₱ (200,000.00)

Net increase/decrease in cash ₱ 275,288.16 ₱ (48,961.39) ₱ 34,372.84 ₱ 45,766.23 ₱ 66,883.47 ₱ 98,475.30

Add: Cash, Beginning 275,288.16 226,326.78 260,699.62 306,465.84 373,349.31
Cash, Ending ₱ 275,288.16 ₱ 226,326.78 ₱ 260,699.62 ₱ 306,465.84 ₱ 373,349.31 ₱ 471,824.61
EXHIBIT 4
E-loading Vending Machine
Projected Statement of Changes of Partner's Equity

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Uchiha, Beg. Capital ₱ 150,000.00 ₱ 147,644.08 107,009.74 ₱ 109,445.32 ₱ 126,530.98 ₱ 155,053.19
Add: Net Income/(Loss) (2,355.92) 59,365.66 102,435.58 117,085.67 128,522.21 143,386.85
Total ₱ 147,644.08 ₱ 207,009.74 ₱ 209,445.32 ₱ 226,530.98 ₱ 255,053.19 ₱ 298,440.04
Less: Withdrawal 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Ending Balance ₱ 147,644.08 ₱ 107,009.74 ₱ 109,445.32 ₱ 126,530.98 ₱ 155,053.19 ₱ 198,440.04

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Uzumaki, Beg. Capital ₱ 150,000.00 ₱ 147,644.08 107,009.74 ₱ 109,445.32 ₱ 126,530.98 ₱ 155,053.19
Add: Net Income/(Loss) (2,355.92) 59,365.66 102,435.58 117,085.67 128,522.21 143,386.85
Total ₱ 147,644.08 ₱ 207,009.74 ₱ 209,445.32 ₱ 226,530.98 ₱ 255,053.19 ₱ 298,440.04
Less: Withdrawal 100,000.00 ₱ 100,000.00 ₱ 100,000.00 ₱ 100,000.00 ₱ 100,000.00
Ending Balance ₱ 147,644.08 ₱ 107,009.74 ₱ 109,445.32 ₱ 126,530.98 ₱ 155,053.19 ₱ 198,440.04

EXHIBIT 5
E-Loading Vending Machine
Projected Financial Ratios

Current Ratio Debt Equity Ratio

Current Assets Current Liabilities Ratio Total Liabilities Partner's Equity Ratio
Year 1 243,606.78 45,587.30 5.34 Year 1 45,587.30 214,019.48 0.21
Year 2 274,643.33 67,752.70 4.05 Year 2 67,752.70 218,890.63 0.31
Year 3 320,559.67 75,497.71 4.25 Year 3 75,497.71 253,061.97 0.30
Year 4 387,961.05 81,854.67 4.74 Year 4 81,854.67 310,106.38 0.26
Year 5 487,010.96 90,130.88 5.40 Year 5 90,130.88 396,880.08 0.23

Return on Assets Return on Investment

Net Income Average Total Assets Ratio Operating Income Total Asset Ratio
Year 1 118,731.31 259,606.78 0.46 Year 1 169,616.16 259,606.78 0.65
Year 2 204,871.15 273,125.05 0.75 Year 2 292,673.08 286,643.33 1.02
Year 3 234,171.34 307,601.50 0.76 Year 3 334,530.48 328,559.67 1.02
Year 4 257,044.42 360,260.36 0.71 Year 4 367,206.31 391,961.05 0.94
Year 5 286,773.70 439,486.00 0.65 Year 5 409,676.71 487,010.96 0.84

Total Asset Turnover Return on Sales

Revenue Total Assets Ratio Operating Income Revenue Ratio
Year 1 829,440.00 259,606.78 3.19 Year 1 169,616.16 829,440.00 0.20
Year 2 870,912.00 286,643.33 3.04 Year 2 292,673.08 870,912.00 0.34
Year 3 914,457.60 328,559.67 2.78 Year 3 334,530.48 914,457.60 0.37
Year 4 960,180.48 391,961.05 2.45 Year 4 367,206.31 960,180.48 0.38
Year 5 1,008,189.50 487,010.96 2.07 Year 5 409,676.71 1,008,189.50 0.41
SCHEDULES

Schedule 1
Projected Sales
Annual Capacity ₱ 138,240.00
Multiply: No. of Target Markets 3
Total number of load credits in a year 414,720
Multiply: Service Charge per load
credits 2
Projected Sales ₱ 829,440.00

Schedule 2
E-Loading Vending Machine
PROJECTED SUPPLIES EXPENSE
  Year 1
Beginning Supplies 172,800
Add: Net Purchases (see sched. 2.1.2) ₱1,502,240.00
Supplies Available for Use 1,502,240.00
Less: Ending Supplies (see sched. 2.1.1) 17,280.00
Supplies Expense (see sched. 2.1) ₱207,401.47
 Schedule 2.1
E-Loading Vending Machine
PROJECTED SUPPLIES USED
Prepaid Load Capacity Percentage
Cost per load creditsTotal Materials Used
Globe 414,720.00 42% 0.50 87,091.20 87,091.20
Smart 414,720.00 31% 0.50 65,090.30 65,090.30
Sun 414,720.00 1% 0.50 2,280.96 2,280.96
Talk N' Text 414,720.00 26% 0.50 52,939.01 52,939.01
207,401.47

Schedule 2.1.1
E-Loading Vending Machine
PROJECTED SUPPLIES INVENTORY
Year 1
Supplies-beg. -

Add: Purchases (see sched. 2.1.2) ₱172,800.00

Supplies Available for Use 172,800.00

Supplies Used (see sched. 2.1) 207,401.47
Supplies End -₱34,601.47

Schedule 2.1.2
E-Loading Vending Machine
PROJECTED PURCHASES
Smart 311,040.00 0.50 31% 48,211.20 0.90 53,568.00
Sun 311,040.00 0.50 1% 1,555.20 0.90 1,728.00
Talk N' Text 311,040.00 0.50 26% 40,435.20 0.90 44,928.00
100,224.00
*90% of supplies available for use will be consumed during the year,
and the remaining 10% will be the supplies inventory at year end.
**Purchases were divided by 90% since there is no beginning inventory
 SCHEDULE 3
E-Loading Vending Machine
Projected Depreciation Expense
Equipment and Machineries
Particulars Quantity Unit Cost Total Cost EstimatedDepreciation
Life

Vendo Printing Machine 2 10,000.00 20,000.00 5 ₱4,000.00

₱4,000.00

*Depreciation expense is computed as a whole.

**The e-loading vending machine already includes monitor, Lcd, coin slot, etc.

SCHEDULE 4
E-Loading Vending Machine
PTOJECTED RENT EXPENSE
    Total Expense Year 1
Rent and Electricity Cost per day 2,700    

Utilities 2,700 2,700 2,700.00

*Rent expense and Electricity expense increased by 3.96% starting from
year 2
 SCHEDULE 5
E-loading vending machine
PROJECTED REPAIRS AND MAINTENANCE
Quantity Unit Cost Total Cost Year 1
2 machine 20,000.00
E-loading vending 40,000.00 2,000.00
TOTAL-charged to factory overhead
*Repairs and maintenance will be 5% of the asset's historical cost.
*Repairs and maintenance will be increased by 3.96% starting on the 2nd year due to inflation.

Schedule 6
E-Loading Vending Machine
PROJECTED CLEANING MATERIALS
Cost
Particular Quantit
per Total Cost Year 1
s y
Item
₱120.
Trash Bin 2 0 240.00 240.00
Total     ₱240.00 240.00
*Supplies will increase by 3.96% starting on the
second
year due to inflation.

SCHEDULE 7

E-Loading Vending Machine

PROJECTED OF MISCELLANEOUS EXPENSE

  Year 0 Year 1
Miscellaneous Expense
(3% of total expenses ₱ 137.24 ₱ 12,168.57
before miscellaneous
expense)
 Schedule 8
E-Loading Vending Machine
PROJECTED SALARIES EXPENSE
th Annual Total Salaries
Position 
No. of person Monthly Salary 13 Month Pay
Salaries Expense
Salaries 3 ₱10,000.00 ₱10,000.00 ₱130,000.00 ₱390,000.00

TOTAL ₱354,240.00 ₱10,000.00 ₱130,000.00 ₱390,000.00

*Salaries will increase by 2% after every three years.

Schedule 9
E-Loading Vending Machine
PROJECTED SSS, PHILHEALTH AND PAG-IBIG EXPENSE
Annual
Position 
No. of personMonthly Salary SSS PhilHealth Pag-ibig
Salaries
Salaries 3 ₱10,000.00 ₱120,000.00 ₱26,521.20 ₱4,500.00 ₱3,600.00

TOTAL ₱10,000.00 ₱120,000.00 ₱26,521.20 ₱4,500.00 ₱3,600.00

 Schedule 10
E-Loading Vending Machine
PROJECTED PERMITS AND LICENSES
Cost Year 1 Year 2 Year 3 Year 4 Year 5
Permits and Licenses

₱75.00
Business Location Clearance ₱75.00 ₱75.00 ₱75.00 ₱75.00 ₱75.00

Fire Safety Clearance 459.6 459.6 459.6 459.6 459.6 459.6

Cenro 500 500 500 500 500 500
SEC Registration 500 500 500 500 500 500
Brgy. Clearance 800 800 800 800 800 800
Community tax 500 2,857.60 2,975.68 3,099.66 3,229.85 3,366.54
Permit Fee 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00

TOTAL ₱6,692.20 ₱6,810.28 ₱6,934.26 ₱7,064.45 ₱7,201.14

Assumption: Permits and licenses will be assumed constant from year 1 to year 5 except for community tax which is based on

Schedule 11
E-Loading Vending Machine
PROJECTED PRE-OPERATING EXPENSES
  Cost Total
Supplies expense 330.00 330.00
Permits and Licenses  
Business Location Clearance 75.00  
Fire Safety Clearance 459.60  
CENRO 500.00  
SEC Registration 500.00  
Brgy. Clearance 800.00  
Community tax 500.00  
Permit Fee 1,500.00 4,334.60
Miscellaneous Expense   139.94
Total   4,804.54
 Schedule 12
E-Loading Vending Machine
PROJECTED SSS, PHILHEALTH AND PAG-IBIG PAYABLE
SSS PhilHealth Pag-ibig
Position  No. of person
Monthly Salary
ER EE ER EE ER EE

Salaries 3 ₱10,000.00 ₱736.70 ₱368.35 ₱125.00 ₱125.00 ₱100.00 ₱100.00

TOTAL ₱10,000.00 ₱2,210.10 ₱1,105.05 ₱375.00 ₱375.00 ₱300.00 ₱300.00

TOTAL PAYABLE ₱3,315.15 ₱750.00 ₱600.00

Schedule 13
E-Loading Vending Machine
PROJECTED INCOME TAX PAYABLE
Year 1
Income Tax Payable ₱1,205,105.23

Remittance (1st - 3rd Quarter) ₱903,828.92

Income Tax Payable ₱301,276.31

Schedule 14
E-Loading Vending Machine
PROJECTED VAT PAYABLE
Year 1
Output Tax ₱708,480.00

Less: Input Tax (OPEX) 58,292.66

VAT on Purchases 180,268.80
Capital Asset 14,400.00
VAT Payable ₱455,518.54