CBA Locker Units - Chapters

CHAPTER I
SUMMARY OF THE STUDY
A. NAME OF THE PROPONENT
The proponent of the proposed “CBA Locker Units” is the College of Business
and Accountancy (CBA) Provincial Board (ProBoard) of Central Philippine University
(CPU).
B. BUSINESS NAME
The name of the business will be the “CBA Locker Units”.
C. LOCATION OF THE BUSINESS
The locker units will be located along the hallway beside NV 107 (AVR), Central
Philippine University, Lopez-Jaena Street, Jaro, Iloilo City.
D. BRIEF DESCRIPTION OF THE PROJECT
The “CBA Locker Units” is a college-owned locker unit exclusively for the use of
CBA students. The units will benefit both the students and the college ProBoard. It could
provide convenience to the students while generating additional income for the college.
E. HIGHLIGHTS OF THE MAJOR ASSUMPTIONS
1. Market Feasibility
The locker units will be available solely for the use of the CBA students
especially those with loads of books & other belongings and those who are not residing
near the campus.

2. Social and Economic Desirability
The proposed project will benefit the students by providing them
expediency and immediate access to their necessary belongings. It would also benefit
the ProBoard Members on their proper bookkeeping and other accounting skills since
they will be involved in a business world someday.
3. Technical Feasibility
The purchased units will be made of steel in order to provide longer
service. The durability of steel could protect the units from external factors such as
termites, fire, theft, etc. Quality units mean safe belongings, thus providing security to the
unit users.
Each unit will be spacious enough to accommodate student belongings
especially those thick books and several handouts. Every unit is designed with a
detachable partition to segregate the user’s possessions. This partition could also be
used in cases wherein two students are occupying the same unit.
4. Financial Feasibility
The total fund needed to purchase these locker units will approximately
be P 40,000.00 and cost recovery would take place in more or less three academic
years, provided each locker unit is rented and the recommended monthly fee is imposed.
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CHAPTER II
MARKETING ASPECT
A. MARKET DESCRIPTION
A market is any one of a variety of different systems, institutions, procedures,
social relations and infrastructures whereby persons trade, and goods and services are
exchanged, forming part of the economy. In mainstream economics, the concept of a
market is any structure that allows buyers and sellers to exchange any type of goods,
services and information.
In this study, the market refers to the College of Business and Accountancy
(CBA) students of Central Philippine University (CPU) who are not residing near the
campus and find it difficult to carry their belongings for a long time and for those who
want to have immediate access to their possessions.
B. MARKET DEMAND
Demand is the desire to own something and the ability to pay for it. The term
demand signifies the ability or the willingness to buy a particular commodity at a given
point of time.
The Law of Demand states that when the price of a good rises, the amount
demanded falls, and when the price falls, the amount demanded rises. It means that
people will buy more of a service, product, or resource as its price falls.
In this study, demand is the need of the students to have a temporary depository
of their belongings – a place where they can leave their stuffs with an assurance that it
will not be lost and that they can get it back as soon as they need it.
Table 1 shows the population of CBA students for the first semester of SY 2009-2010.
This will be the possible number quantity of demand this study would encounter.
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TABLE 1. SUMMARY OF ENROLLMENT (First Semester SY 2009-2010)
FIRST YEAR
MAJOR MALE FEMALE TOTAL
BS Accountancy 76 271 347

BS Advertising 8 16 24
BSBA Major in: 111
Business Management 66 45
Financial Management 4 18 22
Marketing Management 10 29 39
BS Entrepreneurial Management 2 5 7
BS Management Accounting 11 31 42
TOTAL 156 436 592
SECOND YEAR

BSBA Major in:
Business Management 43 71 114
BSC – Finance 0 1 1
TOTAL 131 285 416
THIRD YEAR
BSBA Major in:
Business Management 37 72 109
BS Commerce Major in
Management 1 1 2
Management Accounting 0 4 4
Marketing 1 1 2
TOTAL 106 261 367
FOURTH YEAR
BSBA Business Management 21 40 61
BSBA Marketing Management 8 13 21
BS Commerce Major in:
Entrepreneurship 4 2 6
Finance 4 12 16
Management 18 32 50
Management Accounting 7 30 37
Marketing 11 7 18
Total 126 260 386
4
GRAND TOTAL 519 1,242 1,761
C. MARKET SUPPLY
Supply is the relationship showing the quantities of goods and services that will
be offered for sale at each price within a specific time period. Supply represents how
much the market can offer. The quantity supplied refers to the amount of a certain good
producers are willing to supply when receiving a certain price.
The Law of Supply states that as the price of a good or service increases, the
quantity of goods or services offered by suppliers’ increases and vice versa. The supply
relationship shows a direct relationship between prices and quantity supplies. High prices
encourage firms to produce more, while low prices discourage production.
D. MARKET PROGRAM
1. METHOD OF SERVICE
The CBA-ProBoard office will make an announcement on the availability of locker
units to all CBA students during enrollment. It will be a “first come, first serve” basis. The
standard term will cover a whole semester or summer and renewable for the next term.
2. PRICING
Prices will be set by the CBA-ProBoard officers after considering the cost
incurred for the acquisition and the length of time of using the locker units.
3. TARGET MARKET
The target market will be limited only to CBA students enrolled for the current
semester and summer.
4. MARKETING STRATEGY
Marketing strategy is essentially a pattern or plan that integrates your
organization’s major goals, policies, and action sequences in a cohesive whole.
To achieve this study’s objectives of providing convenience to students and an
additional income to the University, the following strategies will be done:
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1. Announcements
• Announcements will be made during the CBA’s college orientation.
• Further information dissemination through posting announcements on
the bulletin boards.
• Announcement on CPU website, specifically on the College of Business
and Accountancy’s webpage.
2. Assignment of locker units.
• When the students are properly informed and their desire to acquire
locker units has been made certain, they will be assigned to their
respective units according to their choice.
3. Payment collection
• The collection manner will be on an installment or cash basis base on the
students’ preference
• If a student opted to pay on a cash basis, he/she will pay the full amount
for the whole semester or summer during enrollment or upon reservation.
• If a student opted to pay on an installment basis, he/she will pay the first
two (2) months rent upon reservation then pays the remaining balance
at the end of each month in the ProBoard office.
• A grace period of 30 days will be allowed for an occupant who was not
able to pay on time.
• A receipt will be provided as a proof of their occupancy for the given
period.
4. Reservation and transition
• By the end of each semester or summer, ownership of locker units will be
updated. Current unit users will be given preemptive right to confirm
reservation of their respective unit for the next term. For the graduating
students or those who have no plan to renew their occupancy, their
respective units will be made available for the new occupant.
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E. SWOT ANALYSIS
STRENGTHS
• Units are durable, spacious, and secure enough for storage of valuable
things.
• Readily accessible to students.
WEAKNESS
• Newly introduced to CBA students.
OPPORTUNITIES
• No existing competitors.
• Specific site is considered “flood-free”.
• Large population of CBA students.
THREAT
• Future implementation of building renovation in accordance with the
proposed CPU master plan.
7
CHAPTER III
TECHNICAL ASPECT
A. THE LOCKER UNITS
The locker units will be made of steel to provide durability from external factors
like termites, fire, theft, etc. By coating it with paint, it may also endure climate changes.
The strength of each “opening” will be of assurance to the occupant from future loss.
It will be constructed by a manufacturing company that specializes in metal
works. Constructing a locker unit is significantly economical compared to purchasing
because it could be customized to client’s specification. Customized locker units could be
acquired for a larger one with less cost in contrast to a multiple standard-made locker
units.
B. THE OPERATION
The CBA-ProBoard will be responsible in making announcements during the
enrollment and during the college orientation. ProBoard Members will be the one who
would provide the information regarding how to avail the said privilege. The
corresponding technicalities to be followed by the student for their continuous usage of
the units would also be tackled.
Students who are willing to have a reservation will approach the Property
Custodian or any ProBoard Officer for further information. If the student agrees to certain
conditions, he/she will have his/her reservation.
The Property Custodian will keep record of the list identifying the occupants for
each opening, including their contact details. He/she will prepare a “Reservation List” in
duplicate. One copy will be forwarded to the Treasurer and the other is for filing.
8
The students will pay their fees to the Treasurer, who will issue an Official
Receipt (OR), which will be necessary for control purposes. One copy of Official Receipt
will be given to the student and the other will be forwarded to the Bookkeeper. Funds
collected will be accumulated for the whole semester or summer and deposited intact by
the Treasurer in a bank.
The Bookkeeper will, after receipt of the OR, will prepare a Remittance List that
records the names of students who have paid their monthly fees. This Remittance List
will then be forwarded to the Property Custodian. The bookkeeper will then file the Official
Receipt.
The Property Custodian, as soon as it receives the list, will compare it to the
Reservation List to determine those students who have not paid their corresponding fees.
Then, the Property Custodian will prepare a List of Unpaid Reservation, which will then
be posted on the CBA Bulletin Board.
The student should provide his/her own padlock; however at the end of each
semester or summer, they are required to empty their unit. A maximum of two occupants
is available for every unit. If the student desires to renew his/her occupancy, he/she will
just inform the ProBoard office and pay the corresponding fees.
Proper maintenance of the locker units will be done every three (3) years or
whenever necessary under the supervision of the property custodian.
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C. OPERATIONS FLOWCHART
1. RESERVATION
GOVERNOR CUSTODIAN TREASURER
Announcement
Students
Reservation
1 1
Reservation Reservation
List 2 List
Reservation
List
Fil
e
10
2. PAYMENT
STUDENT TREASURER BOOKKEEPER CUSTODIAN
1 2
Reservation Reservation
List List
₱ ₱ Remittance Remittance
List List
1 1
OR OR List of Post on Bulletin
2 2 Unpaid
OR OR Board
Reservation
Fil
e
Bank
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D. PROJECT LAYOUT
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CHAPTER IV
MANAGEMENT ASPECT
A. FORM OF BUSINESS ORGANIZATION
The “CBA Locker Units” shall be owned by Central Philippine University’s
College of Business and Accountancy Provincial Board (ProBoard). Its monitoring will be
done by the College of Business and Accountancy ProBoard Members under the
supervision of the college Governor. The collection of fees will be the responsibility of the
treasurer assigned by the ProBoard. The bookkeeper will be responsible for all the record
keeping.
B. ORGANIZATIONAL CHART
College of Business and Accountancy

PROVINCIAL BOARD
Governor
(Supervisor)
Bookkeeper Treasurer Property Custodian
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C. MANPOWER REQUIREMENT
The management of the CBA Locker Units will include the following: the
Governor – Supervisor (1), Treasurer (1), Property Custodian (1), and Bookkeeper (1).
An amount of P 500.00 per semester and P 200.00 per summer will be appropriated as
an honorarium (Officers’ Bonus) for the designated manpower. This will be distributed as
P 100.00 per month (or P 25.00 per officer every month).
D. DUTIES AND RESPONSIBILITIES
1. Governor (Supervisor)
• Administers the operation regarding the management of Locker Units.
• Announces the availability of Locker Units during College Orientation.
• Appoints needed officers for the operation of Locker Units.
• Supervises the preparation of reports made by the officers assigned.
• Performs other tasks necessary for the appropriate utilization of the Locker Units.
2. Treasurer
• Collects the fees paid by the occupant.
• Prepares monthly report on collection of monthly installment payments.
• Deposits the collections in a bank account maintained by the ProBoard.
• Disburses necessary expenses for the maintenance of the Locker Units.
• Performs other duties as may be required by the Governor – Supervisor in line
with the appropriate use of the Locker Units.
3. Property Custodian
• Monitors the occupancy of the Locker Units.
• Sees to it that the occupants are promptly paying their installments.
• Purchases necessary materials needed for the maintenance of the Locker Units.
• Performs other duties needed for the wellbeing of the Units.
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4. Bookkeeper
• Keeps record of the collection of fees from the students.
• Prepares necessary reports required by the Governor.
• Performs other tasks as required by his duty.
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CHAPTER V
FINANCIAL ASPECT
A. TOTAL FINANCIAL INVESTMENT
Cost of Asset: P 39,450.00
B. PROJECT FINANCING
Fund appropriated for the purchase of Locker Units will be fully funded by a
certain percentage of College fees collected by the ProBoard during enrollment.
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C. FIVE-YEAR PROJECTED FINANCIAL STATEMENTS
1. Comparative Income Statement
CBA Locker Units

Projected Comparative Income Statement
For the Five-Year Ended December 31, 2009 to December 31, 2013
(Based on P20 per unit)
Year 1 Year 2 Year 3 Year 4 Year 5

(Note 1) (Note 2) (Note 3) (Note 4) (Note 5)
Revenue P 12,240.00 P 12,240.00 P 12,240.00 P 12,240.00 P 12,240.00

Less: Operating Expenses
Officers’ Bonus 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Depreciation Expense 3,705.00 3,705.00 3,705.00 3,705.00 3,705.00
Maintenance 400.00
Total Expenses 4,905.00 4,905.00 5,305.00 4,905.00 4,905.00

Operating Income P 7,335.00 P 7,335.00 P 6,935.00 P 7,335.00 P 7,335.00
20
CBA Locker Units

Revenue P 18,360.00 P 18,360.00 P 18,360.00 P 18,360.00 P 18,360.00

Officers’ Bonus 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Maintenance 400.00
Total Expenses 4,905.00 4,905.00 5,305.00 4,905.00 4,905.00

Operating Income P13,455.00 P13,455.00 P13,055.00 P13,455.00 P13,455.00
21
CBA Locker Units

Revenue P 24,480.00 P 24,480.00 P 24,480.00 P 24,480.00 P 24,480.00

Officers’ Bonus 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Maintenance 400.00
Total Expenses 4,905.00 4,905.00 5,305.00 4,905.00 4,905.00

Operating Income P19,575.00 P19,575.00 P19,175.00 P19,575.00 P19,575.00
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2. Comparative Balance Sheet
CBA Locker Units

Projected Comparative Balance Sheet
As of December 31, 2009 to December 31, 2013

ASSETS
Cash P 11,040.00 P 22,080.00 P 32,720.00 P 43,760.00 P 54,800.00

Locker Units (net of Dep’n) 35,745.00 32,040.00 28,335.00 24,630.00 20,925.00
Total Assets P 46,785.00 P 54,120.00 P 61,055.00 P 68,390.00 P 75,725.00
EQUITY
CBA ProBoard, Capital P 46,785.00 P 54,120.00 P 61,055.00 P 68,390.00 P 75,725.00
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CBA Locker Units

ASSETS
Cash P 17,160.00 P 34,320.00 P 51,080.00 P 68,240.00 P 85,400.00

Total Assets P 52,905.00 P 66,360.00 P 79,415.00 P 92,870.00 P106,325.00
EQUITY
24
CBA Locker Units

ASSETS
Cash P 23,280.00 P 46,560.00 P 69,440.00 P 92,720.00 P116,000.00

Total Assets P 59,025.00 P 78,600.00 P 97,775.00 P 117,350.00 P136,925.00
EQUITY
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3. Comparative Capital Statement
CBA Locker Units

Projected Comparative Capital Statement

CBA ProBoard,Capital beg. P 39,450.00 P 46,785.00 P 54,120.00 P 61,055.00 P 68,390.00

Add: Net Income 7,335.00 7,335.00 6,935.00 7,335.00 7,335.00
CBA, ProBoard Capital, end P46, 785.00 P 54,120.00 P 61,055.00 68,390.00 75,725.00
26
CBA Locker Units


Add: Net Income 13,455.00 13,455.00 13,055.00 13,455.00 13,455.00
CBA, ProBoard Capital, end P 52,905.00 P 66,360.00 P 79,415.00 P 92,870.00 P 106,325.00
CBA Locker Units



Add: Net Income 19,575.00 19,575.00 19,175.00 19,575.00 19,575.00
CBA, ProBoard Capital, end P 59,025.00 P 78,600.00 P 97,775.00 P 117,350.00 P 136,925.00
27
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4. Cash Budget
CBA Locker Units

Projected Cash Budget
Year 1
1st Semester 2nd Semester Summer
Cash, beginning P 0.00 P 4,900.00 P 9,800.00

Add: Collections 5,400.00 5,400.00 1,440.00
Total P 5,400.00 P10,300.00 P11,240.00

Less: Disbursements 500.00 500.00 200.00
Cash, end P 4,900.00 P 9,800.00 P11,040.00
Year 2
Cash, beginning P11,040.00 P15,940.00 P20,840.00

Add: Collections 5,400.00 5,400.00 1,440.00
Total P16,440.00 P21,340.00 P22,280.00

Cash, end P15,940.00 P20,840.00 P22,080.00
Year 3

Add: Collections 5,400.00 5,400.00 1,440.00
Total P27,480.00 P32,380.00 P32,920.00

Cash, end P26,980.00 P31,480.00 P32,720.00
Year 4

Add: Collections 5,400.00 5,400.00 1,440.00
Total P38,120.00 P43,020.00 P43,960.00

Cash, end P37,620.00 P42,520.00 P43,760.00
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CBA Locker Units
Year 5

Add: Collections 5,400.00 5,400.00 1,440.00
Total P49,160.00 P54,060.00 P55,000.00

Cash, end P48,660.00 P53,560.00 P54,800.00
CBA Locker Units

Year 1
Cash, beginning P 0.00 P 7,600.00 P15,200.00

Add: Collections 8,100.00 8,100.00 2,160.00
Total P 8,100.00 P15,700.00 P17,360.00

Cash, end P 7,600.00 P15,200.00 P17,160.00
Year 2

Add: Collections 8,100.00 8,100.00 2,160.00
Total P25,260.00 P32,860.00 P34,520.00

Cash, end P24,760.00 P32,360.00 P34,320.00
30
Year 3
Cash, beginning P34,320.00 P41,920.00 P 49,120.00

Add: Collections 8,100.00 8,100.00 2,160.00
Total P42,420.00 P50,020.00 P51,280.00

Cash, end P41,920.00 P49,120.00 P51,080.00
Year 4

Add: Collections 8,100.00 8,100.00 2,160.00
Total P59,180.00 P66,780.00 P68,440.00

Cash, end P58,680.00 P66,280.00 P68,240.00
Year 5

Add: Collections 8,100.00 8,100.00 2,160.00
Total P76,340.00 P83,940.00 P85,600.00

Cash, end P75,840.00 P83,440.00 P85,400.00
31
CBA Locker Units
Year 1
Cash, beginning P 0.00 P10,300.00 P20,600.00

Add: Collections 10,800.00 10,800.00 2,880.00
Total P10,800.00 P21,100.00 P23,480.00

Cash, end P10,300.00 P20,600.00 P23,280.00
Year 2

Add: Collections 10,800.00 10,800.00 2,880.00
Total P34,080.00 P44,380.00 P46,760.00

Cash, end P33,580.00 P43,880.00 P46,560.00
Year 3

Add: Collections 10,800.00 10,800.00 2,880.00
Total P57,360.00 P67,660.00 P69,640.00

Cash, end P56,860.00 P66,760.00 P69,440.00
Year 4

Add: Collections 10,800.00 10,800.00 2,880.00
Total P80,240.00 P90,540.00 P92,920.00

Cash, end P79,740.00 P90,040.00 P92,720.00
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CBA Locker Units
Year 5
Cash, beginning P 92,720.00 P103,020.00 P113,320.00

Add: Collections 10,800.00 10,800.00 2,880.00
Total P103,520.00 P113,820.00 P116,200.00

Cash, end P103,020.00 P113,320.00 P116,000.00
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NOTES TO FINANCIAL STATEMENTS
1. Projected Income Statement
CBA Locker Units

Projected Income Statement
Note 1: Year 1
1st Semester 2nd Semester Summer Total
Revenue P 5,400.00 P 5,400.00 P 1,440.00 P 12,240.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Depreciation Expense 1,543.75 1,543.75 617.50 3,705.00
Maintenance 0 0 0 0
Operating Income P 3,356.25 P 3,356.25 P 622.50 P 7,335.00
Note 2: Year 2
Revenue P 5,400.00 P 5,400.00 P 1,440.00 P 12,240.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
Note 3: Year 3
Revenue P 5,400.00 P 5,400.00 P 1,440.00 P 12,240.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 400.00 0 400.00
34
CBA Locker Units
Note 4: Year 4
Revenue P 5,400.00 P 5,400.00 P 1,440.00 P 12,240.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
Note 5: Year 5
Revenue P 5,400.00 P 5,400.00 P 1,440.00 P 12,240.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
35
CBA Locker Units
Note 6: Year 1
Revenue P 8,100.00 P 8,100.00 P 2,160.00 P 18,360.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
Operating Income P 6,056.25 P 6,056.25 P1,342.50 P 13,455.00
Note 7: Year 2
Revenue P 8,100.00 P 8,100.00 P 2,160.00 P 18,360.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
Note 8: Year 3
Revenue P 8,100.00 P 8,100.00 P 2,160.00 P 18,360.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 400.00 0 400.00
Note 9: Year 4
Revenue P 8,100.00 P 8,100.00 P 2,160.00 P 18,360.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
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CBA Locker Units
Note 10: Year 5
Revenue P 8,100.00 P 8,100.00 P 2,160.00 P 18,360.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
CBA Locker Units

Note 11: Year 1
Revenue P10,800.00 P10,800.00 P 2,880.00 P 24,480.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
Note 12: Year 2
Revenue P10,800.00 P10,800.00 P 2,880.00 P 24,480.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
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CBA Locker Units
Note 13: Year 3
Revenue P10,800.00 P10,800.00 P 2,880.00 P 24,480.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 400.00 0 400.00
Note 14: Year 4
Revenue P10,800.00 P10,800.00 P 2,880.00 P 24,480.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
Note 15: Year 5
Revenue P10,800.00 P10,800.00 P 2,880.00 P 24,480.00

Officers’ Bonus 500.00 500.00 200.00 1,200.00
Maintenance 0 0 0 0
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Note 16:
CBA Locker Units

Projected Balance Sheet
Year 1
ASSETS
Cash P 4,900.00 P 9,800.00 P12,240.00

Locker Units P39,450.00 P39,450.00 P39,450.00
Less: Accum. Depr’n 1,543.75 37,906.25 3,087.50 36,362.50 3,705.00 35,745.00
TOTAL ASSETS P42,806.25 P46,162.50 P46,785.00
EQUITY
CBA ProBoard, Capital P42,806.25 P46,162.50 P46,785.00
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Note 17:
CBA Locker Units

Year 2
ASSETS
Cash P15,940.00 P20,840.00 P22,080.00

Locker Units P39,450.00 P39,450.00 P39,450.00
Less: Accum. Depr’n 5,248.75 34,201.25 6,792.50 32,657.50 7,410.00 32,040.00
TOTAL ASSETS P50,141.25 P53,497.50 P54,120.00
EQUITY
40
Note 18:
CBA Locker Units

Year 3
ASSETS
Cash P26,980.00 P31,480.00 P32,720.00

Locker Units P39,450.00 P39,450.00 P39,450.00
Less: Accum. Depr’n 8,953.75 30,496.25 10,497.50 28,952.50 11,115.00 28,335.00
TOTAL ASSETS P57,476.25 P60,432.50 P61,055.00
EQUITY
41
Note 19:
CBA Locker Units

Year 4
ASSETS
Cash P37,620.00 P42,520.00 P43,760.00

Locker Units P39,450.00 P39,450.00 P39,450.00
Less: Accum. Depr’n 12,658.75 26,791.25 14,202.50 25,247.50 14,820.00 24,360.00
TOTAL ASSETS P64,411.25 P67,767.50 P68,390.00
EQUITY
42
Note 20:
CBA Locker Units

Year 5
ASSETS
Cash P48,660.00 P53,560.00 P54,800.00

Locker Units P39,450.00 P39,450.00 P39,450.00
Less: Accum. Depr’n 16,363.75 23,086.25 17,907.50 21,542.50 18,525.00 20,925.00
TOTAL ASSETS P71,746.25 P75,102.50 P75,725.00
EQUITY
43
Note 21:
CBA Locker Units

Year 1
ASSETS
Cash P 7,600.00 P 15,200.00 P17,160.00

Locker Units P39,450.00 P39,450.00 P39,450.00
Less: Accum. Depr’n 15,432.75 37,906.25 3087.50 36,362.50 3,705.00 35,745.00
TOTAL ASSETS P45,506.25 P51,562.50 P52,905.00
EQUITY
44
Note 22:
CBA Locker Units

Year 2
ASSETS
Cash P24,760.00 P 32,360.00 P34,320.00

Locker Units P39,450.00 P39,450.00 P39,450.00
Less: Accum. Depr’n 5,248.75 34,201.25 6,792.50 32,657.50 7,410.00 32,040.00
TOTAL ASSETS P58,961.25 P 65,017.50 P66,360.00
EQUITY
45
Note 23:
CBA Locker Units

Year 3
ASSETS
Cash P41,920.00 P 48,120.00 P51,080.00
Locker Units P39,450.00 P39,450.00 P39,450.00

Less: Accum. Depr’n 8,953.00 30,496.25 10,497.50 28,952.50 11,111.50 28,335.00
TOTAL ASSETS P 72,416.25 P 78,072.50 P79,415.00
EQUITY
46
Note 24:
CBA Locker Units

Year 4
ASSETS
Cash P58,680.00 P 66,280.00 P68,240.00
Locker Units P39,450.00 P39,450.00 P39,450.00

Less: Accum. Depr’n 12,658.75 26,791.25 14,202.50 25,247.50 14,820.00 24,630.00
TOTAL ASSETS P 85,471.25 P 91,527.50 P92,870.00
EQUITY
47
Note 25:
CBA Locker Units

Year 5
ASSETS
Cash P78,840.00 P 83,440.00 P85,400.00
Locker Units P39,450.00 P39,450.00 P39,450.00

Less: Accum. Depr’n 16,363,75 23,086.25 17,907.50 21,542.50 18,525.00 20,925.00
TOTAL ASSETS P 98,926.25 P 114,982.50 P106,325.00
EQUITY
CBA ProBoard, Capital P 98,926.25 P114,982.50 P106,325.00
48
Note 26:
CBA Locker Units

Year 1
ASSETS
Cash P10,300.00 P 20,600.00 P23,280.00
Locker Units P39,450.00 P39,450.00 P39,450.00

Less: Accum. Depr’n 1,543.75 37,906.25 3,087.50 36,362.50 3,705.00 35,745.00
TOTAL ASSETS P 48,206.25 P 56,962.50 P59,025.00
EQUITY
CBA ProBoard, Capital P48,206.25 P 56,962.50 P60,225.00
49
Note 27:
CBA Locker Units

Year 2
ASSETS
Cash P33,580.00 P 43,880.00 P46,560.00
Locker Units P39,450.00 P39,450.00 P39,450.00

Less: Accum. Depr’n 5,248.75 34,201.25 6,792.50 32,657.50 7,410.00 32,040.00
TOTAL ASSETS P 67,781.25 P 76,537.50 P78,600.00
EQUITY
50
Note 28:
CBA Locker Units

Year 3
ASSETS
Cash P56,860.00 P 66,760.00 P69,440.00
Locker Units P39,450.00 P39,450.00 P39,450.00

Less: Accum. Depr’n 8,953.75 30,496.25 10,497.50 28,952.50 11,115.00 28,335.00
TOTAL ASSETS P87,356.25 P 95,712.50 P97,775.00
EQUITY
51
Note 29:
CBA Locker Units

Year 4
ASSETS
Cash P 79,740.00 P 90,040.00 P92,720.00
Locker Units P39,450.00 P39,450.00 P39,450.00

Less: Accum. Depr’n 12,658.75 26,791.25 14,202.50 25,247.50 14,820.00 24,630.00
TOTAL ASSETS P106,531.25 P 115,287.50 P117,350.00
EQUITY
52
Note 30:
CBA Locker Units

Year 5
ASSETS
Cash P103,020.00 P113,320.00 P116,000.00
Locker Units P39,450.00 P39,450.00 P39,450.00

Less: Accum. Depr’n 16,363.75 23,086.25 17,907.50 21,542.50 18,525.00 20,925.00
TOTAL ASSETS P126,106.25 P 134,862.50 P136,925.00
EQUITY
53
SUPPORTING COMPUTATIONS:
Revenue:
P 20.00 1st Semester 60x90%xP20x5mos. = P 5,400
2nd Semester 60x90%xP20x5mos. = P 5,400
Summer 60x60%xP20x2mos. = P 1,440
Depreciation: Cost – Est. Recoverable Amount = P39,450 – 2400 = P 3,705

Estimated Useful Life 10 yrs.
1st Semester = P 3,705 x 5/12 = P 1,543.75
2nd Semester = P 3,705 x 5/12 = P 1,543.75
Summer = P 3,705 x 2/12 = P 617.50
54
D. PROFITABILITY RATIO
Based on P 20.00 monthly fees
1st Year 2nd Year3rd Year 4th Year 5th Year
Return on Revenue = Net Income = P 7,335 P 7,335 P 6,935 P 7,335 P 7,335

Revenue 12,240 12,240 12,240 12,240 12,240
= 59.93% 59.93% 56.66% 59.93% 59.93%
Return on Capital = Net Income = P 7,335 P 7,335 P 6,935 P 7,335 P 7,335

Capital 46,785 54,120 61,055 68,390 75,725
= 15.68% 13.55% 11.36% 10.73% 9.69%
Leverage Ratio = Capital P 46,785 P 54,120 P 61,055 P 68,390 P 75,725

(Capital to Asset) Total Asset 46,785 54,120 61,055 68,390 75,725
= 1.0 1.0 1.0 1.0 1.0
55

Revenue 18,360 18,360 18,360 18,360 18,360
= 73.28% 73.28% 71.11% 73.28% 73.28%

Capital 52,905 66,360 79,415 92,870 106,325
= 25.43% 20.28% 16.44% 14.49% 12.65%

= 1.0 1.0 1.0 1.0 1.0
56

Revenue 24,480 24,480 24,480 24,480 24,480
= 79.96% 79.96% 78.33% 79.96% 79.96%

Capital 59,025 78,600 97,775 117,350 136,925
= 33.16% 24.90% 19.61% 16.68% 14.30%

= 1.0 1.0 1.0 1.0 1.0
57
PAYBACK PERIOD
( P 20.00 )
Year Projected Cash PV of Cash Return Accum. Total of Remaining Unrecovered Payback Year
Annual Return @ 12% Cash Balances Capital
0 - - - P 39,450.00 -
1 P 11,040.00 P 9,857.00 P 9,875.00 29,593.00 1.00
2 22,080.00 17,602.00 27,459.00 21.34 1.00
3 32,720.00 23,289.00 50,748.00 - .09
4 43,760.00 27,810.00 78,558.00 - -
5 54,800.00 31,095.00 109,653.00 - -
2.09yrs
Net Present Value:
Cash Return P 109,653.00

Less: Initial Outlay 39,450.00
P 70,203.00
58
PAYBACK PERIOD
( P 30.00 )
0 - - - P 39,450.00 -
1 P 17,160.00 P15,321.00 P15,321.00 24,129.00 1.00
2 34,320.00 27,360.00 42,681.00 - .88
3 51,080.00 36,358.00 79,039.00 - -
4 68,240.00 43,368.00 122,407.00 - -
5 85,400.00 48,458.00 170,865.00 - -
1.88yrs
Net Present Value:

P 131,415.00
59
PAYBACK PERIOD
( P 40.00 )
0 - - - P 39,450.00 -
1 P 23,280.00 P20,786.00 P20,786.00 18,664.00 1.00
2 45,560.00 37,117.00 57,903.00 - .50
3 69,440.00 49,426.00 107,329.00 - -
4 92,720.00 58,925.00 166,254.00 - -
5 116,000.00 65,822.00 232,076.00 - -
1.50yrs
Net Present Value:

P 192,626.00
60
Net Income
Return on Investment =
Investment
(P20.00)
Year
1 P 7,335.00/ P 39,450.00 = .19
2 P 7,335.00/ P 39,450.00 = .19
3 P 6,935.00/ P 39,450.00 = .18
4 P 7,335.00/ P 39,450.00 = .19
5 P 7,335.00/ P 39,450.00 = .19
(P30.00)
Year
1 P 13,455.00/ P 39,450.00 = .34
2 P 13,455.00/ P 39,450.00 = .34
3 P 13,055.00/ P 39,450.00 = .33
4 P 13,455.00/ P 39,450.00 = .34
5 P 13,455.00/ P 39,450.00 = .34
(P40.00)
Year
1 P 19,575.00/ P 39,450.00 = .50
2 P 19,575.00/ P 39,450.00 = .50
3 P 19,175.00/ P 39,450.00 = .49
4 P 19,575.00/ P 39,450.00 = .50
5 P 19,575.00/ P 39,450.00 = .50
61
CHAPTER VI
LEGITIMACY AND TAXATION ASPECT
A. LEGITIMACY ASPECT
This includes certain requirements such as acknowledgement from the CBA
Provincial Board (ProBoard), and approval from the CBA Dean’s Office.
• Acknowledgement from Provincial Board
This is necessary because the Provincial Board will be the one who will
provide necessary funds in putting up the “CBA Locker Units”. Also, acceptance of
responsibilities by the ProBoard officers, being the Manager/Supervisor, is needed to
assure an excellent service for the maintenance of the units and proper
administration of it.
• Approval from the CBA Dean’s Office
An approval from the Office of the Dean will serve as proof of legitimacy
of putting up the “CBA Locker Units”. This will indicate commencement of operation
of the “CBA Locker Units”.
B. TAXATION ASPECT
The proposed “CBA Locker Units” is a college-owned locker unit exclusively for
the use of CBA students.
According to paragraph 3, Section 4, Article XIV of the Constitution, the
exemption of non-stock, non-profit educational institution refer to internal revenue
taxes imposed by the National Government on all revenues and asset used actually,
directly, and exclusively for educational purposes.
Pursuant to Section 109 (m) of the Tax Code of 1997, private educational
institution shall be exempt from value-added tax provided they are accredited as such
either by the Department of Education, Culture and Sports or by Commission on
Higher Education.
62
CHAPTER VII
SOCIO-ECONOMIC ASPECT
A. CBA COMMUNITY
1. Students
The College of Business and Accountancy students are the primary
subject of the proposed “CBA Locker Units”. The locker units could serve as a depository
for their non-urgent things during class hours while providing assurance that these things
are safely kept.
2. Provincial Board
As the main body that will be in-charge of the administration of “CBA
Locker Units”, the officers will be trained to manage an income-generating project. Also,
fees generated will be added to their total funds, which could be used for other ProBoard
projects for the betterment of the college and its students.
3. Supplier/Contractor
The prospective manufacturer or supplier of the proposed “CBA Locker
Units” will be benefited by this project. It would also mean a benefit for the workers and
other people directly or indirectly working for the finishing of the locker units.
B. SURROUNDINGS
The “CBA Locker Units” will be made of steel thus providing enough sturdiness to
prevent untoward accident from students and other people. The locker units will only
occupy enough space along the hallway and will not cause a jam-packed area.
63
CHAPTER VIII
CONCLUSION AND RECOMMENDATION
A. CONCLUSION
After considering the various aspect of the proposed project, the result showed a
profitable and useful service for the CBA ProBoard and students, respectively. Being
accepted by majority of the College, the researchers, therefore, conclude that the setting-
up of “CBA Locker Units” is feasible.
B. RECOMMENDATION
Based on the presented results and projections, the proposed “CBA Locker
Units” proved to be profitable. However, it is believed that the assumptions herein will
provide to be realistic and attainable with all its proper implementation. Hence, the
researchers recommend that the CBA ProBoard Officers assigned in managing the “CBA
Locker Units” should be accountable enough and strive for a better service.
It is reasonably recommended that the management would prefer a P 30.00 per
month service fee for the use of locker units since it showed both benefits in capital
recovery (approximately 3 years) and price desirability.
The students’ acceptance and expression of need for the locker attest that this
project is not in vain. The survival, however, of the locker units depends on the proper
treatment of them. Therefore, the researchers also recommend that the students must be
instructed by the Officers on proper use of their respective units. It is further
recommended that appropriate maintenance should be performed when deemed
necessary.
64
CHAPTER IX
SENSITIVITY ANALYSIS
The proposal of the CBA Locker Units considers many factors and a few were
determined that could affect the operations of the said project.
1. Acceptability
Acceptability refers to the degree of acceptance of the students of CBA.
2. Poor Management and Operation
Poor and Management and Operation refers to the inability of the
management to control or supervise the business transactions that has
occurred. It could create loss rather than gain.
The maintenance of the locker units is the responsibility of the
management. Failure to do so will make the units depreciate faster.
3. Decreasing the Number of Enrollees
The decease in the number of enrollees will result to the decrease in the
demand and therefore will simultaneously decrease the income generated from
the use of the locker units.
4. Fortuitous Event
Fortuitous event is an unforeseen event (also termed as an act of GOD)
happening by chance, by accident or by uncertainty that cannot be resisted or
prevented. The management should provide a contingency fund allotted in
anticipating this phenomenon.
65

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CHAPTER I

SUMMARY OF THE STUDY

A. NAME OF THE PROPONENT

and Accountancy (CBA) Provincial Board (ProBoard) of Central Philippine University

The name of the business will be the “CBA Locker Units”.

C. LOCATION OF THE BUSINESS

Philippine University, Lopez-Jaena Street, Jaro, Iloilo City.

D. BRIEF DESCRIPTION OF THE PROJECT

E. HIGHLIGHTS OF THE MAJOR ASSUMPTIONS

near the campus.

The proposed project will benefit the students by providing them

they will be involved in a business world someday.

The purchased units will be made of steel in order to provide longer

Each unit will be spacious enough to accommodate student belongings

A market is any one of a variety of different systems, institutions, procedures,

exchanged, forming part of the economy. In mainstream economics, the concept of a

services and information.

want to have immediate access to their possessions.

BS Accountancy 76 271 347

BS Accountancy 34 101 135

producers are willing to supply when receiving a certain price.

encourage firms to produce more, while low prices discourage production.

The CBA-ProBoard office will make an announcement on the availability of locker

semester and summer.

Marketing strategy is essentially a pattern or plan that integrates your

organization’s major goals, policies, and action sequences in a cohesive whole.

To achieve this study’s objectives of providing convenience to students and an

additional income to the University, the following strategies will be done:

• Announcements will be made during the CBA’s college orientation.

• Further information dissemination through posting announcements on

the bulletin boards.

• Announcement on CPU website, specifically on the College of Business

and Accountancy’s webpage.

2. Assignment of locker units.

respective units according to their choice.

• The collection manner will be on an installment or cash basis base on the

for the whole semester or summer during enrollment or upon reservation.

at the end of each month in the ProBoard office.

able to pay on time.

• A receipt will be provided as a proof of their occupancy for the given

4. Reservation and transition

• By the end of each semester or summer, ownership of locker units will be

updated. Current unit users will be given preemptive right to confirm

students or those who have no plan to renew their occupancy, their

respective units will be made available for the new occupant.

• Readily accessible to students.

• Newly introduced to CBA students.

• Specific site is considered “flood-free”.

• Large population of CBA students.

• Future implementation of building renovation in accordance with the

proposed CPU master plan.

A. THE LOCKER UNITS

It will be constructed by a manufacturing company that specializes in metal

works. Constructing a locker unit is significantly economical compared to purchasing

because it could be customized to client’s specification. Customized locker units could be

The CBA-ProBoard will be responsible in making announcements during the

corresponding technicalities to be followed by the student for their continuous usage of

the units would also be tackled.

conditions, he/she will have his/her reservation.

the Treasurer in a bank.

be posted on the CBA Bulletin Board.

whenever necessary under the supervision of the property custodian.