ON TRADING BUSINESS

Name of Business: Pinoy TradingName of Business: Pinoy TradingLegal Form:    Sole ProprietorshipBusiness Type:  TradingProducts and/or services: Fertilizer,   Products and/or services: Fertilizer,   

InsecticidesCustomers:  FarmersCustomers:  FarmersOwner:    Pedro PenducoNumber of staff or employees: 2, Sales Clerk, 

Bookkeeper, 1     delivery boy, 1 warehouseman

FUND REQUIREMENTS AND SOURCING

Requirements Source of FundsTotal Cost            Equity      OWWA Loan

Fixed Assets:Building Construction/Renovation P20,000.00          P20,000.00Machineries and Equipment 100 000 00          100 000 00Machineries and Equipment 100,000.00          100,000.00Furniture and Fixtures 5,000.00             5,000.00

Working Capital 300,000.00 300,000.00

‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐TOTAL P425,000.00           P125,000.00 P300,000.00

======       ======        =======

MARKETING PLANProducts to be sold :     Fertilizer and  

InsecticidesInsecticidesTarget Customers:         FarmersLocation: Neighborhood and Nearby 

Places of San Ricardo, Talavera,   Nueva Ecija

Competition and competitiveCompetition and competitive advantage:Competitors Present 

estimated Capitalization

No. of years in Operation

ComparativePricing

ABC Trading

Capitalization

P500,000.00 3Highx

Ave. Low

Bagong BuhayCoop.

1,000,000.00 10  X

Pinoy Trading 300,000.00 X

WHY WOULD PEOPLE BUY MY PRODUCTS /AND/OR SERVICES INSTEAD OF MY 

COMPETITORS?Pinoy Trading will be offering specialdiscounts to customers with good creditgstanding. We will be selling products ofgood quality with low price and will makeg q y psure that customers are our top priority byproviding excellent customer assistance andp gfree on‐time delivery for every P5,000.00worth of products purchase.

Expected Sales/Month Product PricingSales/Month

100 cavans of fertilizer at P / d P  

Products will be sold at 25%k d ill b ff iP1,500/cavan and P25,000.00 

to P50,000.00 insecticide.mark up and will be offering3% special discounts to goodcustomers. Compare to our

dcompetitors, our productswill be selling at low price butof good quality.

BUSINESS LOCATIONPinoy Trading is located at San Ricardo, Talavera,Nueva Ecija along provincial road near San RicardoNational High School and Brgy Hall of Brgy SanNational High School and Brgy. Hall of Brgy. SanRicardo. It is very accessible to nearby places becauseof concrete roads and there is electricity supplied byy pp yNueva Ecija Electric Cooperative. San Ricardo,Talavera and neighboring places are 98% agriculturalarea.

METHODS OF DISTRIBUTIONMETHOD

Free Delivery

DETAILS

P5,000.00 worth of products purchased 

COST

products purchased within San Ricardo, Tal., Nueva EcijaGasoline P 50.00/delivery

Delivery with Charge Within the area with a minimum  charge of P150 00/delivery  P150.00/delivery, outside Talavera  P300.00/deliveryGasoline P100.00/delivery

TYPES OF PROMOTION/ADVERTISINGTYPE

SIGNAGE

DETAILS

TO BE INSTALLED IN FRONT OF THE STORE

COST

P 500.00

STEAMERS/TARPAULIN

THE STORE

TO BE INSTALLED IN CROSSING  P1,000.00CABANATUAN CITY

POSTERS/FLYERS TO BE DISTRIBUTED IN  NEARBY PLACES

P500.00

TECHNICALAND 

ORGANIZATIONAL PLAN

MANPOWER COMPLEMENTMANPOWER COMPLEMENTPOSITION BRIEF DESCRIPTION NO. 

REQ’SALARY/WAGE  RATE

Manager Shall be responsible in managing the business.  Th  d i i   k   d 

REQD

RATE

No salary neededi hi i lThe decision maker and 

primary responsible in the business operations.

1 since this is a soleproprietorship.The owner is themanager.

Cashier Shall be responsible  for 

g

No salary needed Cashier Shall be responsible  for cash outflows and inflows.

No salary needed since this is a sole proprietorship. The owner is also the cashier.

POSITION BRIEF DESCRIPTION NO   SALARY/WAGE  POSITION

Sales Clerk

BRIEF DESCRIPTION

Shall be responsible in the 

NO. REQ’D

SALARY/WAGE  RATE

pdaily sales. Shall attends to customer needs. Shall report and prepare daily sales

1P3,000.00 subject to salary increase depends on the net income of the sales. net income of the business.

Sales Clerk/Bookkeeper

Shall be responsible  for  daily sales. Since  she’s also the bookkeeper she shall be 

1P4,000.00 subject to salary increase depends on the er the bookkeeper she shall be 

responsible in recording of the daily sales and daily transactions. Shall prepare f l f

depends on the net income of the business.

financial reports for review  of the owner/manager.

POSITION BRIEF DESCRIPTION NO. ’

SALARY/WAGE  

Delivery Boy Shall be responsible in the delivery of products 

REQ’D

RATE

P3,000.00 subject delivery of products purchased by customers. Shall submit to bookkeeper the delivery receipt. Shall b   ibl  i  th  

1P3,000.00 subject to salary increase depends on the net income of the b ibe responsible in the 

maintenance of delivery vehicle.

business.

Warehouseman Shall be responsible for in and out of products. Shall prepare  the inventory report and shall be 

1P3,000.00 subject to salary increase depends on the net income of the report and shall be 

responsible for  monthly physical inventory  under the supervision of the 

net income of the business.

owner/manager.

MACHINE/EQUIPMENT REQUIREMENT/ Q QMACHINE EQUIPMENT NO. REQ’D UNIT COST TOTAL COST

Delivery Vehicle

Furniture and Fixtures

1 P100,000.00 P100,000.00

5 000 00Furniture and Fixtures

Office/Store Renovation

5,000.00

20,000.00

Organizational Chart

Owner/ Manager/ Cashier

S l  Cl k B kk Warehouse  Delivery Sales Clerk Bookkeeper Many

Man

BASIC ASSUMPTIONSWorking Capital (OWWA Loan) payable in one year     P300,000.00

Interest on Loan 7 5% p a  with grace period of two  Interest on Loan 7.5% p.a. with grace period of two months

Free delivery  for a minimum purchase of P5,000.00y p 5,P300 delivery charge outside Talavera, Nueva EcijaP150.00 delivery charge within25% mark‐up on products soldSalaries and Wages

 D li  b P / th 1 Delivery boy P3,000.00/month

1 Sales Clerk P 3,000.00/month 1 Sales Clerk/Bookkeeper 4,000.00/month 1 Delivery Boy 3,000.00/month W h / h 1 Warehouseman 3,000.00/month

Power, Light and Water Electricity P700 00/month Electricity P700.00/month

Water 300.00/month Office Supplies 500.00/month Taxes and Licenses

BIR/Business Permit (Mayor’s Permit), DTI/DOLEP it(t  b   ti d i     ) Permit(to be amortized in one year) 4,000.00

Fuel and Oil for Delivery of products sold   2,000.00/month

Trans. And Travelling Expenses   2,000.00/month

Promotional Expenses Signage Tarpaulin flyers 2 000 00 Signage,Tarpaulin,flyers 2,000.00

Plant Property  DEPRECIATIONPlant Property and Equipment

Delivery Vehicle

COST

P100,000.00

ESTIMATED LIFE

10 years

DEPRECIATIONPER MONTH

P833.33

Furniture and Fixture

5,000.00 5 years 83.33

Store Construction/Renovation

20,000.00 5 years 333.33

Sales per month  100 cavans of Fertilizer at  P1 500 00/cavan and P62 500 00P1,500.00/cavan and P62,500.00

Purchases per month depends on Cash Available for Purchases per month depends on Cash Available for Use

PINOY TRADINGProjected Statement of Cash Flow

January 1 to March 31, 2015

January February MarchJanuary February March

CASH INFLOWS:

Loan Proceeds (OWWA) 300,000.00

Net Sales 212,050.00 212,050.00 212,050.00

TOTAL CASH INFLOW(Available 512,050.00 212,050.00 212,050.00

for use)for use)

Less: CASH OUTFLOWS: 

Purchases 290,000.00 194,000.00 194,000.00

Salaries and wages 13,000.00 13,000.00 13,000.00

Power, Light and water 1,000.00 1,000.00 1,000.00

Office Supplies 500.00 500.00 500.00pp

Taxes and Licenses 4,000.00

Trans. And Travelling Exps. 2,000.00 2,000.00 2,000.00

Fuel and Oil Expenses 2,000.00 2,000.00 2,000.00

Promotional Expenses 2,000.00

TOTAL CASH OUTFLOW 314,500.00 212,500.00 212,500.00

NET CASH BEFORE DEBT SERVICE 197,550.00  (450.00) (450.00)

Less: Debt Service

Loan Payable (Principal) 0 0 25,000.00

Interest on Loan 0 0 1 875 00Interest on Loan 0 0 1,875.00

Total Debt Service  0 0 26,875.00

NET CASH FLOW AFTER DEBT 197,550.00  (450.00) (27,325.00)

SERVICE

Add: Cash Bal. Beginning 0 197,550.00  197,100.00 

CASH BALANCE‐END 197,550.00  197,100.00  169,775.00 

PINOY TRADING

Projected Income Statement

For the First Quarter Ended, 2015

January February March

SALES 212 500 00 212 500 00 212 500 00SALES 212,500.00 212,500.00 212,500.00

Less: Sales Discounts 450.00  450.00  450.00 

Net Sales 212,050.00 212,050.00 212,050.00

Less: Cost of Sales

Beg. Inventories 0.00 120,000.00  144,000.00

dd hAdd: Purchases 290,000.00 194,000.00 194,000.00Less: Puchases Returns & Allow. 0.00 0.00 0.00

Purchase Discounts 0 00 0 00 0 00Purchase Discounts 0.00 0.00 0.00

Goods Available for Sale 290,000.00 314,000.00 338,000.00Less: Merchandise Inventories 120,000.00 144,000.00 168,000.00Inventories 120,000.00  144,000.00  168,000.00 

COST OF SALES 170,000.00 170,000.00 170,000.00

Gross Income 42,050.00 42,050.00 42,050.00

Less: Operating Expenses

Salaries and wages 13,000.00 13,000.00 13,000.00

Power, Light and water 1,000.00 1,000.00 1,000.00

Office Supplies 500.00 500.00 500.00

Taxes and Licenses 333.33 333.33 333.34Trans. And Travelling 

Exps. 2,000.00 2,000.00 2,000.00

Fuel and Oil Expenses 2,000.00 2,000.00 2,000.00

Promotional Expenses 2,000.00 0.00 0.00

Depreciation Expense 1,249.99  1,249.99  1,250.02 

Total Operating Expenses  22,083.32  20,083.32  20,083.36 Net Income from Operation 19,966.68  21,966.68  21,966.64 

Less: Interest on Loan 1,875.00 

Net income Before Tax 19 966 68 21 966 68 20 091 64Net income Before Tax 19,966.68  21,966.68  20,091.64 

Provision for Income tax 5,990.00  6,590.00  6,027.49 

NET INCOME 13,976.68  15,376.68  14,064.15 

PINOY TRADINGProjected Balance Sheet

For the First Quarter Ended, 2015January February March

ASSETS:

Current assets:

C h H d 197 550 00 197 100 00 169 775 00Cash on Hand 197,550.00  197,100.00  169,775.00 

Merchandise Inventories 120,000.00  144,000.00  168,000.00 

Prepaid Expenses 3,666.67 3,333.34 3,000.00

Total Current Asset 321,216.67 344,433.34 340,775.00

Plant, propert and Equipment:

Delivery Vehicle 100,000.00 100,000.00 100,000.00

Less: Accumulated Depreciation 833.33 1,666.66  2,500.00 

99,166.67 98,333.34 97,500.00

Store Construction  20,000.00  20,000.00  20,000.00 

Less: Accumulated Depreciation 333.33  666.66 1,000.00 

19,666.67 19,333.34 19,000.00

Furniture and Fixtures 5 000 00 5 000 00 5 000 00Furniture and Fixtures 5,000.00  5,000.00  5,000.00 

Less: Accumulated Depreciation 83.33 166.66 250.00

4,916.67  4,833.34  4,750.00 

TOTAL ASSETS 444, 966.68 466,933.36 462,025.00

LIABILITIES AND CAPITAL

Loans Payable (OWWA) 300,000.00 300,000.00 275,000.00

Provision for Income Tax 5,990.00  12,580.00  18,607.49 

Accrued Expenses Payable

Total Liabilities 305,990.00 312,580.00 293,607.49

CAPITAL:

Pedro Penduco Capital 125 000 00 125 000 00 125 000 00Pedro Penduco Capital 125,000.00 125,000.00 125,000.00

Net Income 13,976.68  29,353.36  43,417.51 

CAPITAL END 138 976 68 154 353 36 168 417 51CAPITAL END 138,976.68  154,353.36  168,417.51 

TOTAL LIABILITIES AND CAPITAL 444,966.68  466,933.36  462,025.00 

THANK   THANK   YOUYOU