ATENEO DE DAVAO UNIVERSITY Emilio Jacinto Street, Davao City In partial fulfillment of the requirements of Management Consultancy A Project

Feasibility Study on: MobiLet Services

Submitted to: Atty. Fidel M. Valdez, CPA Management Consultancy Instructor

Submitted by: Gauce, Schenley Marie S. Kusayin, Jedidda Krishna N. Mioza, Roelle John P. Pedalizo, Ana Baena A. Wong, Wilvert E. BSA 4C February 22, 2012

Acknowledgement

The proponents of this Project Feasibility Study would like to extend heartfelt gratitude to the following people who became our inspiration, who helped and understood our shortcomings and weaknesses, sufficed our need in aspects of financing and defraying the expenses needed to make this project into being. First, we would like to thank our Parents for their unparalleled support and love in all our endeavors and pursuits in life. For understanding our needs in terms of financial, and are willing to extend their meager income just to help us. Second, to our instructor Atty. Fidel M. Valdez, CPA, for his utmost patience in teaching us how to make this industry study; and for criticizing us in a way that neither of us would get disheartened. For always giving us reason to smile, laugh, and most especially learn from our mistakes. Third, to our classmates in Management Consultancy, who gave us an idea on what, where and how are we going to start with our project; and for giving us high-octane laughter and lessons. Fourth, to the people behind this project especially those whom we have interviewed for patiently answering our queries. And lastly, to the Creator of all things on Earth, the Almighty Father, for giving us enough patience, perseverance, understanding, and sensitivity. In guiding us on our way home and keeping us stable during those days when we thought we are going to give up. The group cherishes all of you.

Table of Contents

Acknowledgement ... i Table of Contents . ii Chapter I. Executive Summary .... 1 Chapter II. Market Study ...5 Chapter III. Technical Feasibility9 Chapter IV. Financial Feasibility A. Assumptions.17 B. Financial Statements.23 C. Notes to Financial Statements29 D. Financial Analysis .45 E. Accounting and Control 56

Chapter V. Socio Economic Study 57 Chapter VI. Organization and Management Study 58 Chapter VII. Chapter VIII. Recommendations . 59 Appendixes.60

ii

CHAPTER I - EXECUTIVE SUMMARY A. Name of the Project MobiLet Services MobiLet is a combination of the words mobile and toilet. The product is hauled in the back of a mobile truck. B. Location of the Project Ideal Subdivison, Dumoy Toril, Davao City C. Descriptive definition and Highlights of the Project The MobiLet (Mobile Toilet) Project served only as a second choice in doing our Project Feasibility Study due to difficulty of gathering data regarding our first choice of project. We came up with this decision with the help of our Management Advisory Services professor Attorney Fidel Valdez, CPA. The prototype of our project belongs to Engineer Giovanni Nonoy Paredes who owns MGCP Steel Works and Allied Services. His business also provides portable toilets in events here and outside the vicinity of Davao City. With our study, an aid will be provided to those people who are in line with this kind of industry and also to those who wanted to have a business of portable toilets. Davao City is the largest city in our country therefore it is expected that many events will take place. Throughout every year, Davao City sponsors a lot of occasions. Such events will take in long hours therefore a need for toilet is anticipated. Hence, portable toilets are needed in times of these events especially if they are held in an open area and access to comfort rooms is difficult. The supply and demand of portable toilet here at Davao City depends on these occasions. As a consequence, stability of rentals is not expected. However, there occurs a prejudice on portable toilets about its sanitation. Thus this becomes a problem in getting customers in our said product. As a result, we tend to make the sanitation of our product to be at its best.

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In financing our business, we will have a loan from a bank. The payments are done in 36 months by amortizing the principal and also paying the simple interest of 9% annually. The P2, 000, 000.00 fund is allocated with the following: LAND OFFICE 3 MobiLets Office Supplies TOTAL PRICE P 750, 000 P300,000 P180,000 P11,477 P1,241,477 TOTAL AMOUNT P 750,000 P300,000 P540,000 P11,477 P1,601,477

The excess cash will be included in the Cash Account Balance. D. Projects long range objectives In long term prospect, we expect that our business will grow and provide other services other than the MobiLet. According to the City Tourism and an interviewed business prototype, Davao City can expect that events and occasions will increase in a span of ten (10) years. The supply of portable toilets here in Davao City is limited and the demand will continue to grow in years to come taking into consideration the many events and occasions that will occur. With this, we envision that toilet rental and service business is a profitable venture with unlimited growth potential by providing a service that benefits the society. What makes the product more beneficial is definitely

convenience and hygiene. Though MobiLets cannot give the identical comforts as of inbuilt toilets in homes, it can replicate most of the functions of the home-based toilet. Also, the social responsibility of the community with other communities in the future will develop and with that it cannot be helped not to organize events. Hence, the need of our product is certain. E. Feasibility Criteria Things that we must take into consideration: 1. Market feasibility Does the product already exist in the market? How many competitors do we have in the metropolis?

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Do consumers appreciate and patronize the product?

2. Technical Feasibility What are the processes in having such business like this? What are the properties and equipments needed? What are the means of disposing waste in your product? 3. Financial Feasibility How much capital to be raised? Does the business will be feasible or not in the long run? How many labourers/employees are needed? How can we sustain the socio-economic responsibilities and maintain environmental friendly operations? What are the legal actions and requirements in having the business? In connection with the waste disposal, how such is being considered? 5. Organization and Management Feasibility Who will be the owner? What are positions to be vested to the employees? What the controls needed to have a sound business? 4. Socio-economic feasibility

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F. Major Assumptions and Summary of Findings and Conclusion We intend to provide services to people in need of a convenient place to urinate and defecate. Especially that the city has many outdoor events we plan to give people a faster, more convenient and a cleaner portable toilet they could have imagine. The MobiLet differs from the common portalet since we do not provide a plastic-made toilet bowl and urinal bowl but a wellfurnished one made of ceramic fixtures. Aside from that, we put a water tank above the MobiLet which serves as a water reservoir and a customized waste storage under the mobile. We designed the MobiLet with elegance. Mirrors, lightings, ventilation, tissue holders and hand gel dispensers are provided. A truly unique one and the first high-end portable toilet in the Davao metropolis. The newly developed project will make the society be more conscious with their hygiene and to maintain an ambiance of a homely comfort room. We also aim to discipline them by providing the appropriate place to urinate and defecate. A cleaner environment can attract tourists to come in the City which in turn could increase economic growth. The business is a sole proprietorship. The owner will generate capital to be used in the construction of office and storage site and procuration of equipment, supplies and other necessary things needed. The owner will serve as the manager of his own business to be efficient with the labor cost. The proprietor will hire secretary, maintenance team and drivers.

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CHAPTER II MARKET STUDY A. Service Description MobiLet Services is a business entity that offers mobile toilet rental. The service is similar to that of portalet rentals except that the business provides a mobile toilet for easier transport. After the clients have placed their orders, the MobiLet is the delivered on the scheduled time. Every night, the MobiLet will be drained and cleaned accordingly. The MobiLet rentals is not exclusive only to Davao-based clients but will also be available to prospects in the nearby provinces of Davao del Sur, Davao del Norte, and Davao Oriental.

B. Market Description Due to the uncommon nature of the business, 80% of the clientele will be event organizers, events providers, and companies that hold events in remote locations. The remaining 20% will be the families holding reunions, parties or similar events which demand the use of the MobiLet. The entity owns three (3) mobile toilet units which can be driven to different locations. These MobiLets have the same specifications with respect to its amenities; they will only differ in visual aesthetics. The segmentation of the market will be solely based on the clients capacity to pay. Customers outside of the city will be charged the same rate however corresponding fees will be added for the transportation expense.

C. Demand Based on the inquiry we conducted with MGCP Steel Works and Allied Services, one of the only two providers of portalets here in Davao city, they estimated a total of around 40 clients and lent portalets 63 times for the year 2011 only as shown in the table 2.1 below.

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Table 2.1 Client No. of portalets Abreeza San Miguel Willing Willie Tanduay Others Total 6 2 3 6 66 83 Total No. of days rented 30 14 2 4 66 116 Total Consumption(units) 180 28 6 24 66 304

Throughout the course of this paper the standard one unit of consumption is equal to one MobiLet per day will be used. MGCP currently supplies 60% of the market while the other 40% is provided by its competitor. MobiLet expects to supply 15% of the market during the first year of operations and is expected to increase by at least 3% in terms of the whole market share annually for the next four years. The aforementioned data will be the basis of our demand projection for the next five years since data from other suppliers is not available. Table 2.2 illustrates the projected demand for the next five years. Table 2.2 Year Qty. Demanded in units. 1 2 3 4 5 76* 91 106 122 137

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*Total Consumption from Table 2.1 / 60% = 507 units 507 units x 15% = 76 units The data presented in Table 2.2 are expressed in terms MobiLet per day. This means that in the first year of operations, MobiLets will be rented 76 times on a daily basis. That also goes for the succeeding years.

D. Supply The three MobiLet units will be custom built by MGCP Steelworks and Allied Services. The number of MobiLets available will remain the same regardless of the increasing demand for the next five years. However, in cases where the entity can no longer cater to the abrupt spike in quantity demanded we will outsource the service from MGCP. At the end of each year, we will be evaluating the sufficiency of available MobiLet for the next year and determine whether or not a necessary addition is needed. E. Demand-Supply Analysis Since MobiLet is a new player in the industry. Its market share is obviously the least compared to that of its two prototype. It is most probable that the entity will always have enough MobiLets to supply the immediate demand. Although the demand is expected to increase by 3% annually in the next five years, the quantity supplied will remain at three MobiLets. At the end of the fifth year, the business would have acquired new units in response to its increasing share in the market.

F. Price Study Both demand and supply are price inelastic due to the nature of the service and the number of suppliers in the current market. This will be substantiated in the financial section of this paper. In a survey conducted on event organizing entities, the price range that they are willing to pay is from P3,000 P3,800. This data coincides with the inquiry we made with MGCP on their prices.

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Since the industry is not regulated by the Department of Trade and Industry, the business has the liberty to charge the market price which is mentioned above. In order to compete with other players, we will set price at P3000 per MobiLet per day for ordinary customers and as much as P3800 per unit depending on the clients capacity to pay.

G. Marketing Program The current industry does not rely heavily on advertising since the market is considered to be a duopoly. This means that there are only two players in the market. In addition, both players also work with each other in order to meet the market demand. In times where one has no available units, the other can be outsourced and vice versa. MobiLet will also apply this principle and hopes to establish the same competitive relationship with both current players. However, in order to increase its market share, MobiLet will launch and advertising campaign mainly targeting event organizers, malls, and the general public. The marketing endeavor will be accomplished by sending pamphlets to establishments, putting up an advertisement in two billboards in strategic locations within the city, and also through internet ads in various forums.

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CHAPTER III - TECHNICAL FEASIBILITY

A. The Product The product Mobile Toilet or shortly called as MobiLet is typically used as a temporary toilet for large gatherings and outdoor events. It is called MobiLet because it is designed for a convenient transportation of portable toilets. The product is hauled in the back of a mini truck. It is constructed mainly of steel but the toilet itself is made of ceramics. The product is different from the usual portable toilet which is made out of plastic. The basic portable unit includes only a light weight molded plastic toilet and a toilet paper for both men and women. MobiLet is designed with separate men and women restrooms. The mens restroom includes a waterless urinal bowl made of ceramic while the womens unit has a ceramic toilet with a flushing system. Men who want to defecate can make use of the womens toilet. Both units are fully equipped with a range of extra touches such as ceramic sink with water, mirrors, lights, toilet paper with holder, trash can, air fresheners, and antibacterial hand gel dispensers. The upper part has a large water tank which holds fresh water supply for flushing and sink water. The lower part is where waste are stored. An exhaust fan is provided for each separate room to control temperature, replenish oxygen, remove moisture, and unpleasant smells. The floor is made up of tiles.

One of the benefits of our mobile toilet is mostly related to their portability. It is ideal for private parties and special events such as garden weddings, conventions, concerts, festivals, etc. where restrooms are not accessible. It can be hired for a one-off event or for a long term event. Our product is rented to customers and we guarantee cleanliness, and as a rule cleaned and disinfected on a regular basis.

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THE MOBILET LAYOUT Exhaust Fan Mirror Toilet Door Tissue Dispenser Sink Floor Urinal Trash Can Light

This is the floor plan of the MobiLet. The upper portion is the water tank, and waste storage underneath the truck.

This is the external view of the MobiLet.

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B. SERVICE PROCESS

owner/ manager customer secretary

Maintanance Crew Maintanance

Crew
Maintenance Crew

When a customer calls or asks for reservation he may call and be accommodated by either the owner/manager or secretary. If the owner/manager receives the reservation, he may accept or disapprove the reservation. If it is the secretary whom the customer transacts, he must still ask for approval to the owner/manager for a new customer but if it is a regular customer he may initiate to approve or reject the reservation. Both the owner/manager and secretary can command or give instructions

BOOKING

1ST CLEAN-UP

DELIVERY

2ND CLEAN-UP

TRANSPORT BACK

3RD CLEAN-UP

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Booking Confirmation of the order, schedule and location by the client to the secretary. 1st Clean-up and preparation Minor cleaning of the unit before delivery. Filling the water tank, and checking if the unit works and if ready to use. Delivery Transporting the unit to the specified area before the time which depends on the distance between the office and location. 2nd Clean-up Maintenance every after four hours. Transport back Returning the unit after the agreed time limit. 3rd Clean-up Cleaning the unit and waste storage.

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C. MACHINERY AND EQUIPMENT The table represents the list of equipment and furniture that the firm has purchased in starting up the business. The entity will only need minimal equipment since the transactions involved in the business are just basic, the office will mainly engage booking only.
DESCRIPT ION
NO. OF UNIT

PRICE

USE

PRICE REFERENCE

Sharp fax machine

P 3,125

To receive calls and fax

ebay.com.ph

Desktop Computer

P 20,000

To record files and to check and update online advertisement

emcor.com.ph

Panasonic 0.5HP Window Type Aircon

P 11,816

To make the office cool and comfortable.

emcor.com.ph

Office table

P 1,500

Use as storage for files Assigned to each MobiLet and office for cleaning Assigned to each MobiLet and office for cleaning

sulit.com.ph

Toilet brush

P 180

Gaisano Mall

Toilet scrub

P 150

Gaisano Mall

Gloves

P 400

Assigned to each MobiLet and office, and use when cleaning

Gaisano Mall

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Chair

P 5,140

Use at a desk in an office.

emcor.com.ph

Sofa

P 5,000

For visitors and client to sat on.

Gaisano Mall

Office Supplies

P 1,000

For paper works in the office.

National Bookstore

White board 36 x 40 inches

P 1,230

Use as office calendar

National Bookstore

TOTAL COST

P 49,541

The equipment and furniture listed above can be procured in appliance stores or department store just around the city.

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D. OFFICE LOCATION & LAYOUT The location of the office and storage site: Lot Area : 400sqm. Location : Ideal Subdivision, Dumoy Toril, Davao City

Other Details Just a few minutes away from Mergrande Beach Resort Just a few minutes away from Water World beach resort Excellent quality of water Just 15 minutes away from Makro and Matina Center Point Just 20 minutes away from SM Mall

30 meters Maintenance and Cleaning Materials

Gate

7.5 meters

Office

Door

Door

Parking Space for

Parking Space for MobiLet

Parking Space for

MobiLet

Septic Tank
Gate

The site will serve as the main office as well as the location and storage of MobiLet units. Customers are welcomed and rentals are accepted in the office. A parking space is provided for the three (3) MobiLet units. A large space will also be provided for the maintenance and cleaning equipments. The cost of the building and land is P750,000.

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MobiLet

E. UTILITIES Monthly Cost Electricity Water Telephone Internet PhP 1,106.00 PhP 714.29 PhP PhP 892.86 999.00 Installation Cost PhP 5,500.00 PhP

The utilities of the entity would only include electricity, water, telephone, and internet. The table above represents the monthly cost of each utility. There would an unusual high water bill since approximately 50 gallons of water is needed for each MobiLet and every use. F. WASTE DISPOSAL The same approach will be done for disposing urine and feces. Both will be pump out of the waste storage into the septic tank located at the business compound. Underneath part of the unit Waste tank Detachable hose Septic Tank

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G. LABOR REQUIREMENTS
Cashier and/or Secretary Function(s) The cashier is also the secretary. He/she accepts clients and informs the owner for approval. The owner decides whether payment will be on a cash or credit basis. The secretary then informs the driver and the maintenance crew for minor clean-up and check-up of facilities before transport. Hours of work Maximum of 8 for (1) day hours from 8 to 12 noon and 1 to 5 in the afternoon Number of One (1) workers to be employed for each job Labor Administrative Classification Driver/Maintenance After being informed by the secretary, the driver will be part of the maintenance team for a minor clean-up before transporting the MobiLet. At the destination, the driver alone will undergo a clean-up after four (4) hours of use of the MobiLet unit. He will wait until the agreed rental time lapses. The driver will also serve as the maintenance crew for each of the mobilet. Utility man and/or Security Guard The security guard plays a vital role in security and safety. He maintains the safety of the plant assets.

Maximum of 8 hours from 8 to 12 noon and 1 to 5 in the afternoon Three (3) drivers for the 3 MobiLet units Direct

Maximum of 8 hours from 8 to 12 noon and 1 to 5 in the afternoon One (1)

Indirect

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CHAPTER IV FINANCIAL FEASIBILITY A. ASSUMPTIONS

BALANCE SHEET Cash The firm keeps its cash in a current bank account with no applicable interest rate Cash is deposited at the end of every month

Cleaning Supplies Inventory Cleaning supplies are purchased at the beginning of the year and is adjusted at the end of each year. Beg. inventory balances:

2012 2013 2014 2015 2016

9000 13500 13500 18000 18000

Property, plant and equipment Loan Loan principal: P 1,000,000 Term: 3 years Interest: 9% simple Monthly Payment: P 35,277.78 Annual Payment: P 423,333.36 Computations are based on * Depreciated using the straight line method.

Owners equity The owner would have an initial contribution of P 1,000,000. Additional contribution of P 250,000 and P 900,000 would be made on September 2012 and on 2013. The owner is allowed to have withdrawals.

* http://www.plantersbank.com.ph/business-loans/small-bizloan/#rates

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INCOME STATEMENT Rent Revenue The cost is fixed to be priced per day, regardless if the unit was used less than 24 hours. Salaries Expense There would be one secretary and one utility crew. There would be two on call drivers. For the subsequent years, the same number of employees would be employed. Fuel Expense The costing of fuel is based on the consumption of MobiLet unit per use. It will part of the cost of service. Fuel expense for 2013-2016 is increased based on the forecasted inflation rate at 4.3%* Depreciation expense Depreciation of MobiLet units is part of the cost of services. Depreciation of asset aside from MobiLet units is part of operating expense. Repairs and maintenance Consists of the usual maintenance and repair of a vehicle. Cost of repair may change from time to time, depending on the nature of damage. For the subsequent years, repairs and maintenance are adjusted based on inflation rate of 4.3%. Utilities Compose of water, electricity and telephone with internet. The water bill is part of the cost of service. Other utilities are part of operating expense. Paid at the end of every month.

*http://www.philstar.com/Article.aspx?articleId=715002&publicationSubCategoryId=

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Office Supplies Includes all the common supplies used in the office such as paper, pen, marker and etc. Its cost is outright expense.

OTHER ASSUMPTIONS Client is billed before a unit is delivered. Payment is collected after the event. Collection is strictly in cash. Expenses such as repairs and maintenance, utilities and office supplies, are adjusted by the estimated inflation rate of 4.3% B.1 Pro-forma Financial Statements ASSETS CHART OF ACCOUNTS LIABILITIES AND OWNERS EQUITY Current Liabilities Loan Payable - Current

Current Assets Cash Cleaning Supplies Inventory Non Current Assets

Property, plant and equipment MobiLet Land Building Accumulated Depreciation Owners Equity Building Office Equipment Wong, Capital Accumulated Depreciation Wong, Withdrawals Office Equipment Office Furniture Accumulated Depreciation Office Furniture Accumulated Depreciation Mobilet NOMINAL ACCOUNTS Rent Revenue Office Supplies Expense Salaries Expense Taxes and Licenses Utilities Expense Depreciation Expense Fuel Expense Repairs and Maintenance Expenses Cleaning Supplies expense Interest Expense

Non Current Assets Loans payable-Noncurrent

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Nature of Accounts Balance Sheet Account 1. Cash Cash being the most liquid out of all assets, is the standard medium of exchange in business transactions. 2. Land Land is a tangible asset which is where the office building is located. It is a non-depreciable asset. 3. Building Is the building constructed to be the office of the company and also where the MobiLet units are parked. It is depreciated using the straight line method for twenty years. 4. Office Equipment Office Equipment includes all the tangible assets used for administrative purposes. Also depreciated using the straight line method. 5. Office Furniture Amenities necessary for conducting the normal operations of the business like tables, chairs, and the like. Depreciated over 10 years using straight method. 6. Accounts Payable This account represents current obligations by the firm. They arise mainly from the transactions of the office. 7. Loans Payable Current The current portion of the obligation of the company on loan. 8. Loans Payable - Noncurrent This account stands for the obligation of the company due to the money borrowed by the company to a bank with 9% simple interest . 9. Wong, Capital This account records the original and additional

investments of the owner in the business. This is increased by the amount of profit earned during the year and is decreased by loss.

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10. Wong, withdrawals This account is to trace the withdrawals made by the owner. 11. MobiLet This account is part of Property, Plant and Equipment. Income Statement Accounts 1. Rent revenue Rent income are revenues earned by hiring the MobiLet per day. The cost is fixed to be priced per day, regardless if the unit was used less than 24 hours. 2. Salaries Expense Salaries and wages means all remuneration paid for services performed by an employee to his employer, including cash value of all remuneration paid in any medium other than cash. This primarily composed of salaries for secretary, drivers and utility crew. 3. Repairs and Maintenance Expense These are expenses incurred to keep the tangible assets working. 4. Office Supplies Expense These are expenses for the materials used in the conduct of daily business, mainly for recording of transactions. 5. Utilities Expense Electricity These are expenses for the electricity charges incurred by the firm. 6. Utilities Expense Water These are expenses for the water charges incurred by the firm and water used for the MobiLet. 7. Utilities Expense Telephone with internet These expenditures are for the telephone charges incurred by the firm that includes internet connection. 8. Taxes and Licenses These are expenses that are incurred by the firm for paying taxes and for the application and renewal of licenses.
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9. Depreciation Expense Furniture and Fixtures The portion of the cost of the furniture and fixtures allocated or charged as expense during the accounting period. 10. Depreciation Expense Office equipment The portion of the cost of the office equipment allocated or charged as expense during the accounting period. 11. Depreciation Expense Building The portion of the cost of the building allocated or charged as expense during the accounting period.

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B.2 FINANCIAL STATEMENTS

MobiLet Services MONTHLY STATEMENT OF FINANCIAL POSITION FOR THE YEAR 2012 (all amounts in Philippine peso) ASSETS
January CURRENT ASSETS: Cash (Note 3) Cleaning Supplies Inventory TOTAL CURRENT ASSETS NON-CURRENT ASSETS: Land Property, Plant and Equipment (Note 4) TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES: Loan Payable-Current (Note 5) TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES: Loan Payable-Noncurrent (Note 6) TOTAL NON-CURRENT LIABILITIES EQUITY Owner's Equity (Note 7) TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 974,391 974,391 1,946,614 950,378 950,378 1,894,823 930,345 930,345 1,847,012 909,796 909,796 1,798,685 883,977 883,977 1,745,088 867,621 867,621 1,700,955 840,251 840,251 1,645,806 820,044 820,044 1,597,822 1,043,570 1,043,570 1,793,570 1,013,728 1,013,728 1,735,950 989,241 989,241 1,683,686 972,303 972,303 1,638,970 304,795 8,250 313,045 750,000 883,568 1,633,568 1,946,614 February 260,097 7,500 267,597 750,000 877,225 1,627,225 1,894,823 March 219,379 6,750 226,129 750,000 870,882 1,620,882 1,847,012 April 178,145 6,000 184,145 750,000 864,540 1,614,540 1,798,685 May 131,641 5,250 136,891 750,000 858,197 1,608,197 1,745,088 June 94,601 4,500 99,101 750,000 851,854 1,601,854 1,700,955 July 46,545 3,750 50,295 750,000 845,511 1,595,511 1,645,806 August 5,653 3,000 8,653 750,000 839,168 1,589,168 1,597,822 September 208,495 2,250 210,745 750,000 832,825 1,582,825 1,793,570 October 157,968 1,500 159,468 750,000 826,483 1,576,483 1,735,950 November 112,796 750 113,546 750,000 820,140 1,570,140 1,683,686 December 75,173 75,173 750,000 813,797 1,563,797 1,638,970

LIABILITIES AND EQUITY 305,556 305,556 666,667 666,667 277,778 277,778 666,667 666,667 250,000 250,000 666,667 666,667 222,222 222,222 666,667 666,667 194,444 194,444 666,667 666,667 166,667 166,667 666,667 666,667 138,889 138,889 666,667 666,667 111,111 111,111 666,667 666,667 83,333 83,333 666,667 666,667 55,556 55,556 666,667 666,667 27,778 27,778 666,667 666,667 666,667 666,667

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MobiLet Services MONTHLY-ENDED SUMMARY OF THE STATEMENT OF FINANCIAL PERFORMANCE For the year ended December 31, 2012 (all amounts in Philippine peso) January RENT REVENUE (appendix) LESS: Cost of Service (Note 8) GROSS PROFIT LESS: Operating Expense (Note 9) Income before Interest Expense Interest Expense (Note 10) NET INCOME (LOSS) 24,500 27,801 (3,301) 14,808 (18,109) 7,500 (25,609) February 17,500 25,802 (8,302) 8,212 (16,514) 7,500 (24,014) March 25,000 28,801 (3,801) 8,732 (12,533) 7,500 (20,033) April 21,900 26,422 (4,522) 8,527 (13,049) 7,500 (20,549) May 17,500 27,317 (9,817) 8,502 (18,319) 7,500 (25,819) June 27,600 28,043 (443) 8,412 (8,855) 7,500 (16,355) July 14,300 25,938 (11,638) 8,233 (19,871) 7,500 (27,371) August 25,000 29,180 (4,180) 8,527 (12,707) 7,500 (20,207) September 14,000 24,801 (10,801) 8,173 (18,974) 7,500 (26,474) October 30,400 44,180 (13,780) 8,562 (22,342) 7,500 (29,842) November 17,000 25,802 (8,802) 8,186 (16,988) 7,500 (24,488) December 26,500 27,285 (785) 8,653 (9,438) 7,500 (16,938) TOTAL 261,200 341,370 (80,170) 107,527 (187,697) 90,000 (277,697)

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MobiLet Services MONTHLY SUMMARY OF THE STATEMENT OF CHANGES IN EQUITY For the year ended December 31, 2012 (all amounts in Philippine peso)
January 1,000,000 (25,609) 974,391 February 974,391 (24,013) 950,378 March 950,378 (20,033) 930,345 April 930,345 (20,549) 909,796 May 909,796 (25,819) 883,977 June 883,977 (16,355) 867,621 July 867,621 (27,370) 840,251 August September 840,251 820,044 (20,207) (26,474) 250,000 820,044 1,043,570 October 1,043,570 (29,842) 1,013,728 November 1,013,728 (24,487) 989,241 December 989,241 (16,938) 972,303

Beginning Add: Net income Contribution Less: Withdrawals Ending Balance

26| M o b i L e t S e r v i c e s

27| M o b i L e t S e r v i c e s

ANNUAL FINANCIAL STATEMENTS

MobiLet Services COMPARATIVE STATEMENT OF CHANGES IN EQUITY For the years ended Dec. 2012-2016 (all amounts in Philippine peso)
2012 1,000,000 (277,697) 250,000 972,303 2013 972,303 (235,221) 900,000 1,637,082 2014 1,637,082 (187,623) 1,449,459 2015 1,449,459 (51,710) 1,397,749 2016 1,397,749 (4,990) 1,392,760

Beginning Add: Net income Add: Contribution Less: Withdrawals Ending Balance

28| M o b i L e t S e r v i c e s

MobiLet Services YEARLY-ENDED SUMMARY OF THE STATEMENT OF CASH FLOWS A FIVE-YEAR PROJECTION FROM 2012 (all amounts in Philippine peso)
2012 Cash flows from operating activities: Net Income Depreciation
Increase in Operating Expense
(CLEANING SUPPLIES)

2013 (235,221) 76,114 (159,107)

2014 (187,623) 76,114 (111,509)

2015 (51,709) 76,114 24,404

2016 (4,990) 76,114 71,124

(277,697) 76,114 (201,583)

Net Cash Flows From Operating Activities Cash flows from investing activities: Decrease(Increase) in Property, Plant and Equipment Net Cash Flows From Investing Activities

(1,639,911 ) (1,639,911 )

Cash flows from financing activities: Loans Payable Payment of Loans Payable Cash from Owner Net Cash Flows From Financing Activities
NET DECREASE/INCREASE IN CASH CASH BALANCE AT BEGINNING OF THE MONTH CASH BALANCE AT END OF THE MONTH

1,000,000 (333,333) 1,250,000 1,916,667 75,173 75,173

(333,333) 900,000 566,667 407,560 75,173 482,732

(333,333) (333,333) (444,842) 482,732 37,890

24,404 37,890 62,294

71,124 62,295 133,419

29| M o b i L e t S e r v i c e s

C.

Notes to Financial Statements YEAR 2012

NOTES TO FINANCIAL STATEMENTS Note 1 ORGANIZATION AND OPERATIONS Mobilet Services is a sole proprietorship entity engaged in providing services of portable toilet which is needed during outdoor events that frequently has a long duration or even for days The owner, Mr. Wilvert Wong, a formerly practicing Certified Public Accountant, and now decided to put up a business. Note 2 SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of Mobliet Services is presented to assist understanding the entitys financial statements. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements. Cash Cash is defined as cash on hand and in bank, demand deposits, or any highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value. Office Supplies Office Supplies represent items that are needed for the conduct of transactions, it is wholly allocated to operating expenses. Note 3 CASH The cash that we have is still on the hands of the company.

30| M o b i L e t S e r v i c e s

Note 4 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment # of units Building Fax machine Computer Airconditioner Table Sofa Office Chair Monobloc chair Whiteboard MobiLet TOTAL Note 5 LOAN PAYABLE-CURRENT Loan Payable-current Beginning balance P 1,000,000 Divided by: (loan term) 3 Loan payable for 2012 P 333,333 Divided by: # of months for the year 12 Loan paid monthly P 27,778 Note 6 LOAN PAYABLE-NONCURRENT Loan payable-Noncurrent Beginning balance P 1,000,000 Less: Annual Payment of loan 333,333 Payable for 2013 and 2014 P 666,667 1 1 1 1 2 1 1 2 1 3 Unit Cost Total Cost Use ful life Yearly depreciation P 15,000 312 4,000 1,182 300 500 514 60 246 54,000 76,114

300,000 3,125 20,000 11,816 1,500 5,000 5,140 300 1,230 180,000

300,000 20 3,125 10 20,000 5 11,816 10 3,000 10 5,000 10 5,140 10 600 10 1,230 5 540,000 10 P 1,639,911

Note 7 EQUITY EQUITY Beginning P Add: Net income Add: Contribution Less: Withdrawals Ending Balance P 1,000,000 (277,697) 250,000 972,303

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Note 8
COST OF SERVICE May Jun Jul Aug Sep Oct Nov Dec TOTAL 21,000 21,225 19,800 22,350 18,675 37,350 19,500 20,475 262,950 698 1,116 558 1,116 558 1,116 698 1,116 10,602 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 54,000 750 750 750 750 750 750 750 750 9,000 369 452 330 464 318 464 354 444 4,818 27,317 28,043 25,938 29,180 24,801 44,180 25,802 27,285 341,370

Salaries expenses Fuel expense Depreciation-MobiLet Cleaning Supplies Utilities TOTAL

Jan Feb Mar Apr 21,150 19,500 21,975 19,950 977 698 1,116 837 4,500 4,500 4,500 4,500 750 750 750 750 424 354 460 385 27,801 25,802 28,801 26,422

Note 9 OPERATING EXPENSE

Jan Depreciation Expenses Repairs and Maintenance Taxes and Licenses Expense Utilities Office supplies expense TOTAL 1,842.84 3,183 4,915.00 2389.80 2,477 14,807.64 Feb 1,842.84 3,183 2199.34 987 8,212.18 Mar 1,842.84 3,553 2349.48 987 8,732.32 Apr 1,842.84 3,183 2514.30 987 8,527.14 May 1,842.84 3,183 2489.37 987 8,502.21 Jun 1,842.84 3,303 2279.65 987 8,412.49 Jul 1,842.84 3,183 2129.67 1,077 8,232.51 Aug 1,842.84 3,303 2394.34 987 8,527.18 Sep 1,842.84 3,183 2159.70 987 8,172.54 Oct 1,842.84 3,303 2429.45 987 8,562.29 Nov 1,842.84 3,183 2173.12 987 8,185.96 Dec 1,842.84 3,303 2519.88 987 8,652.72 TOTAL 22,114 39,046 4,915.00 28,028.10 13,424 107,527.10

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Note 10 INTEREST EXPENSE Loan Payable Multiplied by: rate of loan Interest paid for 2012 Note 11 INCOME TAX EXPENSE The entity incurs no income tax expense due to the loss resulted from the operations. P P 1,000,000 9% 90,000

33| M o b i L e t S e r v i c e s

NOTES TO FINANCIAL STATEMENTS YEAR 2013 Note 1 ORGANIZATION AND OPERATIONS Mobilet Services is a sole proprietorship entity engaged in providing services of portable toilet which is needed during outdoor events that frequently has a long duration or even for days The owner, Mr. Wilvert Wong, a formerly practicing Certified Public Accountant, and now decided to put up a business. Note 2 SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of Mobliet Services is presented to assist understanding the entitys financial statements. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements. Cash Cash is defined as cash on hand and in bank, demand deposits, or any highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value. Office Supplies Office Supplies represent items that are needed for the conduct of transactions, it is wholly allocated to operating expenses. Note 3 CASH The cash that we have is still on the hands of the company.

34| M o b i L e t S e r v i c e s

Note 4 Property, plant and equipment

# of units Unit Cost Total Cost Usefu l life Yearly depreciation

Building Fax machine Computer Airconditioner Table Sofa Office Chair Monobloc chair Whiteboard Mobilet TOTAL Note 5

1 1 1 1 2 1 1 2 1 3

300,000 3,125 20,000 11,816 1,500 5,000 5,140 300 1,230 180,000

300,000 3,125 20,000 11,816 3,000 5,000 5,140 600 1,230 540,000 P 1,639,911

20 10 5 10 10 10 10 10 5 10

15,000.00 312.50 4,000.00 1,181.60 300.00 500.00 514.00 60.00 246.00 54,000.00 P 76114.10

LOAN PAYABLE-CURRENT Loan Payable-current Loan - Principal P 1,000,000 Divided by: (loan term) 3 Loan payable for 2013 P 333,333 Note 6 LOAN PAYABLE-NONCURRENT Loan payable-Noncurrent Beginning balance - 2013 P 666,666.67 Less: Annual Payment of loan 333,333.33 Payable for 2014 P 333,333.34 Note 7 EQUITY EQUITY Beginning - 2013 Add: Net income Add: Contribution Less: Withdrawals Ending Balance - 2013 P 972,303 (240,685) 900,000 1,631,618

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Note8 COST OF SERVICE TOTAL Salaries expenses 262,950 Fuel expense 11,058 Depreciation-Mobilet 54,000 Cleaning Supplies 13,500 Utilities 5025 TOTAL 346,533

Note 9
OPERATING EXPENSE Depreciation Expenses Repairs and Maintenance Taxes and Licenses Expense Utilities Office supplies expense TOTAL 22,114.00 40,724.98 4,915.00 29,232.87 14,001.23 110,988.08

Note 10 INTEREST EXPENSE Principal loan Multiplied by: rate of loan Interest paid for 2013 Note 11 INCOME TAX EXPENSE The entity incurs no income tax expense due to the loss resulted from the operations. P P 1,000,000 9% 90,000

36| M o b i L e t S e r v i c e s

NOTES TO FINANCIAL STATEMENTS YEAR 2014

Note 1 ORGANIZATION AND OPERATIONS Mobilet Services is a sole proprietorship entity engaged in providing services of portable toilet which is needed during outdoor events that frequently has a long duration or even for days The owner, Mr. Wilvert Wong, a formerly practicing Certified Public Accountant, and now decided to put up a business. Note 2 SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of Mobliet Services is presented to assist understanding the entitys financial statements. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements. Cash Cash is defined as cash on hand and in bank, demand deposits, or any highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value. Office Supplies Office Supplies represent items that are needed for the conduct of transactions, it is wholly allocated to operating expenses. Note 3 CASH The cash that we have is still on the hands of the company.

37| M o b i L e t S e r v i c e s

Note 4 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment # of Unit Cost Total Cost Use units ful life 1 300,000 300,000 20 1 3,125 3,125 10 1 20,000 20,000 5 1 11,816 11,816 10 2 1,500 3,000 10 1 5,000 5,000 10 1 5,140 5,140 10 2 300 600 10 1 1,230 1,230 5 3 180,000 540,000 10 P 1,639,911 Yearly depreciation P 15,000.00 312.50 4,000.00 1,181.60 300.00 500.00 514.00 60.00 246.00 54,000.00 76114.10

Building Fax machine Computer Airconditioner Table Sofa Office Chair Monobloc chair Whiteboard Mobilet TOTAL

Note 5 LOAN PAYABLE-NONCURRENT Loan payable-Noncurrent Beginning balance - 2013 P 666,666.67 Less: Annual Payment of loan 333,333.33 Payable for 2014 P 333,333.34 Note 6 EQUITY EQUITY Beginning - 2013 Add: Net income Add: Contribution Less: Withdrawals Ending Balance - 2013 Note 7 COST OF SERVICE TOTAL Salaries expenses P 262,950 Fuel expense 11,533 Depreciation-Mobilet 54,000 Cleaning Supplies 13,500 Utilities 5,241 TOTAL P 347,224 P 972,303 (240,685) 900,000 1,631,618

38| M o b i L e t S e r v i c e s

Note 8 OPERATING EXPENSE

OPERATING EXPENSE Depreciation Expenses Repairs and Maintenance Taxes and Licenses Expense Utilities Office supplies expense TOTAL P 22,114.00 42,476.15 4,915.00 35,731.14 14,603.28 P 119,839.58

Note 9 INTEREST EXPENSE Principal loan Multiplied by: rate of loan Interest paid for 2013 Note 10 INCOME TAX EXPENSE The entity incurs no income tax expense due to the loss resulted from the operations. P P 1,000,000 9% 90,000

39| M o b i L e t S e r v i c e s

NOTES TO FINANCIAL STATEMENTS YEAR 2015 Note 1 ORGANIZATION AND OPERATIONS Mobilet Services is a sole proprietorship entity engaged in providing services of portable toilet which is needed during outdoor events that frequently has a long duration or even for days The owner, Mr. Wilvert Wong, a formerly practicing Certified Public Accountant, and now decided to put up a business. Note 2 SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of Mobliet Services is presented to assist understanding the entitys financial statements. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements. Cash Cash is defined as cash on hand and in bank, demand deposits, or any highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value. Office Supplies Office Supplies represent items that are needed for the conduct of transactions, it is wholly allocated to operating expenses. Note 3 CASH The cash that we have is still on the hands of the company.

40| M o b i L e t S e r v i c e s

Note 4 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment # of Unit Cost Total Cost Use units ful life 1 300,000 300,000 20 1 3,125 3,125 10 1 20,000 20,000 5 1 11,816 11,816 10 2 1,500 3,000 10 1 5,000 5,000 10 1 5,140 5,140 10 2 300 600 10 1 1,230 1,230 5 3 180,000 540,000 10 P 1,639,911 Yearly depreciation P 15,000.00 312.50 4,000.00 1,181.60 300.00 500.00 514.00 60.00 246.00 54,000.00 76114.10

Building Fax machine Computer Airconditioner Table Sofa Office Chair Monobloc chair Whiteboard Mobilet TOTAL

Note 5 EQUITY EQUITY Beginning - 2013 P Add: Net income Add: Contribution Less: Withdrawals Ending Balance - 2013 P 972,303 (240,685) 900,000 1,631,618

Note 6 COST OF SERVICE TOTAL Salaries expenses 262,950 Fuel expense 12,029 Depreciation-Mobilet 54,000 Cleaning Supplies 18,000 Utilities 5,467 TOTAL 352,446

41| M o b i L e t S e r v i c e s

Note 7 OPERATING EXPENSE COST OF SERVICE TOTAL Salaries expenses 262,950 Fuel expense 12,029 Depreciation-Mobilet 54,000 Cleaning Supplies 18,000 Utilities 5,467 TOTAL 352,446 Note 8 INTEREST EXPENSE Principal loan Multiplied by: rate of loan Interest paid for 2013 Note 9 INCOME TAX EXPENSE The entity incurs no income tax expense due to the loss resulted from the operations. P P 1,000,000 9% 90,000

42| M o b i L e t S e r v i c e s

NOTES TO FINANCIAL STATEMENTS YEAR 2016 Note 1 ORGANIZATION AND OPERATIONS Mobilet Services is a sole proprietorship entity engaged in providing services of portable toilet which is needed during outdoor events that frequently has a long duration or even for days The owner, Mr. Wilvert Wong, a formerly practicing Certified Public Accountant, and now decided to put up a business. Note 2 SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of Mobliet Services is presented to assist understanding the entitys financial statements. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of financial statements. Cash Cash is defined as cash on hand and in bank, demand deposits, or any highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value. Office Supplies Office Supplies represent items that are needed for the conduct of transactions, it is wholly allocated to operating expenses. Note 3 CASH The cash that we have is still on the hands of the company.

43| M o b i L e t S e r v i c e s

Note 4 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment # of Unit Cost Total Cost Use units ful life 1 300,000 300,000 20 1 3,125 3,125 10 1 20,000 20,000 5 1 11,816 11,816 10 2 1,500 3,000 10 1 5,000 5,000 10 1 5,140 5,140 10 2 300 600 10 1 1,230 1,230 5 3 180,000 540,000 10 P 1,639,911 Yearly depreciation P 15,000.00 312.50 4,000.00 1,181.60 300.00 500.00 514.00 60.00 246.00 54,000.00 76114.10

Building Fax machine Computer Airconditioner Table Sofa Office Chair Monobloc chair Whiteboard Mobilet TOTAL

Note 5 EQUITY EQUITY Beginning - 2013 P Add: Net income Add: Contribution Less: Withdrawals Ending Balance - 2013 P Note 6 COST OF SERVICE TOTAL Salaries expenses 262,950 Fuel expense 12,547 Depreciation-Mobilet 54,000 Cleaning Supplies 18,000 Utilities 5,702 TOTAL 353,199 Note 7 OPERATING EXPENSE
OPERATING EXPENSE Depreciation Expenses Repairs and Maintenance Taxes and Licenses Expense Utilities Office supplies expense TOTAL 22,114.00 46,207.64 4,915.00 38,870.09 15,886.17 127,992.89

972,303 (240,685) 900,000 1,631,618

44| M o b i L e t S e r v i c e s

Note 8 INTEREST EXPENSE Principal loan Multiplied by: rate of loan Interest paid for 2013 Note 9 INCOME TAX EXPENSE The entity incurs no income tax expense due to the loss resulted from the operations. P P 1,000,000 9% 90,000

45| M o b i L e t S e r v i c e s

D.

FINANCIAL ANALYSIS

120% 100% Cash 80% 60% 40% Equity 20% 0% 2012 2013 2014 2015 2016 Property Plant and Equipment

Loans Payable-Non-current

46| M o b i L e t S e r v i c e s

120%

100%

RENT REVENUE 80% Salaries Expense Fuel Expense Depreciation Expense 60% Repairs and Maintenance Taxes and Licenses Utilities 40% Cleaning Supplies Office supplies INTEREST EXPENSE 20%

0% 2012 2013 2014 2015 2016

It can be deduced from the data that on the first and succeeding years, a huge part of the total assets of the entity consist of Property, Plant, and Equipment. This is primarily because the entity is established mainly for rental purposes of MobiLet. PPE therefore largely composes of Land, Building, and the MobiLet which is the main product of the entity and through which future economic benefits will probably flow to the entity. On the second year, there was a decrease of almost 20% of the PPE because of the additional contribution of Cash, which now composes 24% of the total assets.

The total liability, which is composed only of Loans Payable NonCurrent Liability, has a decreasing percentage. The loans term was only for three (3) years. Therefore, on the third and succeeding years, the company incurred no liabilities at all.

The total equity has an increasing percentage. Although for five years, the entity incurred net loss, it is also logical that equity increases because of the initial and additional contribution during the
47| M o b i L e t S e r v i c e s

first and the second years. Also, from year-to-year, net loss decreases. This explains the increasing percentage of Equity.

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GRAPHICAL ILLUSTRATION OF THE HORIZONTAL ANALYSIS INTERPRETATION AND EXPLANATION RENT REVENUE
200% 150% 100% 50% 0%
2012 2013 2014 2015 2016

Rent Revenue increased for as much as 80% in the fifth year. MobiLet is the first mobile toilet in Davao City. Therefore, while the product becomes known to the market, an increasing demand is expected.

EXPENSES
115% 110% 105% 100% 95% 90%

2012 The increase in

2013

2014

2015 due

2016 to inflation

Expenses is particularly

adjustments although some like salaries, depreciation, taxes and licenses, and repairs and maintenance expenses were not anymore adjusted. On subsequent years, while other remains constant, it is expected that expenses, such as fuel and cleaning supplies expenses will increase together with the increasing demand in the market. This is because these expenses are directly proportional to the product demand.

49| M o b i L e t S e r v i c e s

NET LOSS
120%
100% 80% 60% 40% 20% 0%

2012

2013

2014

2015

2016

The entity incurred losses during the five-year projection. This is mainly because the revenue was not enough to cover up the many expenses the entity incur. While revenue increases at 20% yearly, expenses increase only at a slow pace of 4%. Therefore, on subsequent years, the entity can slowly cope up with the losses incurred during the five years. Also, on the fifth year, the company incurs a loss of only 10% from the base year, a big difference from the first year and an indication that the company will generate income on the sixth year. TOTAL ASSETS
140% 120% 100% 80% 60% 40% 20% 0% 2012 2013 2014 2015 2016

On the second year, the total assets increased. This is because of the additional contribution of Cash. On the third and succeeding years, there was a slow decrease of the total assets from the first year. This is mainly due to the depreciation of the Property, Plant, and Equipment, including the MobiLet.

50| M o b i L e t S e r v i c e s

LIABILITIES 120% 100% 80% 60% 40%

20%
0%

2012

2013

2014

2015

2016

The total liabilities, which is only composed of Loan Payable NonCurrent, decrease from the first year to the third year. From the third to the fifth year, the entity incurred no liabilities at all. This is because the loan payable was fully paid.
EQUITY 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2012 2013 2014 2015 2016

There was a large increase in Equity during the second year because of the additional contribution of Cash. However, because the entity incurs losses during the five years, the Equity percentage decreases from the second year to the fifth year.

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GRAPHICAL ILLUSTRATION OF THE RATIOS

2012 Profitabily Ratios Return On Total Assets Net Income (Loss) Add: Interest Expense Divide by: Average Total Assets (277,696.78) 90,000.00 1,638,970.00 -11.45% (235,221.00) 90,000.00 1,804,693.00 -8.05% (187,623.00) 90,000.00 1,709,937.00 -5.71% 1,423,604.00 -3.63% 1,395,254.00 -0.36% (51,710.00) (4,990.00) 2013 2014 2015 2016

Return On Total Assets

0.00% -2.00% -4.00% -6.00% -8.00% -10.00% -12.00% -14.00%
2012 2013 2014 2015 2016

The entity's return on total assets has negative percentage because of the net loss for the five years. However, the negative balance decreases because net loss also decreases. Also, on the second and third years, the interest expense is added back to the net loss. It is probable that on the sixth year, the entity would have a positive Return On Total Assets.

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2012 Return On Equity Return On Assets Divide by: Debt to Assets Ratio -11.45% 0.41 -28.15% 0.17

2013 -8.05%

2014 -5.71% -

2015 -3.63% -

2016 -0.36% -

-47.57%

Return On Equity
0.00%
2012 2013 2014 2015 2016

-10.00% -20.00%

-30.00%
-40.00% -50.00% -60.00%

Return on Equity also has a negative percentage. This is mainly because of the negative Return on Total Assets. On the second year, there was an increase in the negative balance of ROE due to a decrease on the debt to assets ratio. On the third, fourth, and fifth years, the Return on Equity has zero percentage because the entity did not incur any liabilities during these years.

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2012 Working Capital Current Assets Less: Current Liabilities 75,173.00 75,173.00

2013

2014

2015

2016

482,732.00 482,732.00

37,890.00 37,890.00

62,294.00 62,294.00

133,419.00 133,419.00

Working Capital
600,000.00 400,000.00 200,000.00 2012 2013 2014 2015 2016

The Working Capital is equal to the Current Asset. This is because the company does not have current liabilities.
2012 Current Ratio Current Assets Divide by: Current Liabilities 75,173.00 482,732.00 37,890.00 62,294.00 133,419.00 2013 2014 2015 2016

Current Ratio
1.00 0.80

0.60
0.40 0.20 2012 2013 2014 2015 2016

The proponents financial does have all 0% current ratio since th firm does not have any current obligation at the end of every year.
2012 Debt To Asset Ratio Total Liabilities Divided by: Assets 666,667.00 1,638,970.00 40.68% 333,333.00 1,970,415.00 16.92% 1,449,459.00 1,397,749.00 1,392,760.00 2013 2014 2015 2016

54| M o b i L e t S e r v i c e s

Debt To Asset Ratio

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2012 2013 2014 2015 2016

The entity, on its first year of operation, has 40% debt to asset ratio which indicates that the entity financed 40% of its asset with debt, the loan payable. On the first and second years, the entity relied on borrowed money to finance its activities. On succeeding years, the loan payable was fully paid.
2012 Debt To Equity Ratio Total Liabilities Divided by: Equity 666,667.00 972,303.00 68.57% 333,333.00 1,637,082.00 20.36% 1,449,459.00 1,397,749.00 1,392,760.00 2013 2014 2015 2016

Debt To Equity Ratio

80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2012 2013 2014 2015 2016

The debt to equity ratio decreases on the second year because while liabilities decrease, equity increases. Also on the third and succeeding years the entity does not have any major debts which explain a zero percentage of the debt to equity ratio.

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2012 Total Assets Turnover Revenue Divided by: Ave. Total Assets 261,200.00 1,638,970.00

2013

2014

2015

2016

312,300.00 1,804,693.00

364,200.00 1,709,937.00

419,100.00 1,423,604.00

470,500.00 1,395,254.00

Total Assets Turnover

0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 2012 2013 2014 2015 2016

The total assets turnover increases. Although the turnover is low, it constantly increases which is a good indication that even at a slow pace, the entity will generate revenue from the assets, mainly the MobiLet.

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E. ACCOUNTING AND CONROL PLAN The owner of the business will also be the manager since the business is a sole proprietorship. He is the one who facilitates the daily activities happening within the entity. Included in such activities are the receipt and disbursement of cash. Other than the owner, a secretary will also be hired. The payment of the customers is to be made at the time the negotiation takes place. Thus, receivables in the business will be kept in minimum. Supplies to b used will be treated as an outright expense and bought on a yearly basis.

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CHAPTER V SOCIO-ECONOMIC STUDY

As far as the employment is concerned, we firmly assure that we give appropriate compensation to the employees and also benefits. However giving increases in salaries may not be probable due our losses that occur every year. As a service providing entity, we intend to comply whatever the Bureau of Internal Revenue requires us to pay. We must have proper documentation to every transaction we will have in order to provide any authorities requiring it. Since we incur losses for the five years paying of income tax is not required. The portable toilet originated from US and most companies having portalets are importing from them. We will consider a local contractor in making our mobile toilets. We believe in their capacity to create the same or better quality of portalet. With this, we help them generate income for them to use as time is passing by. We also consider that if we are going to export our portalet we will incur too much cost and expenses. Weighing things accordingly, we create a business not only for our own benefit but also with other fellow businessmen as well.

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CHAPTER VI ORGANIZATION AND MANAGEMENT STUDY

Owner / Manager Cashier / Secretary Maintenance Crew / Drivers Utility Man (admin)

The form of our business is sole proprietorship. The owner and manager will be the same person. We consider him as the top management, thus, the final decision will come from him. He will be the one who give authorization in the disbursement. The cash custodian and the secretary will also be the same for the reason that persons needed in line with the kind of business is not required to be numerous. He will be the contact person next to the owner and be the bookkeeper of the firm. Another task vested on to him is that he shall prepare payroll of employees, prepare purchase orders for supplies and updates any record if such transaction will arise in the operations. Though we knew the fact that the business is not stricter when it comes to segregation of duties, we exercise a fiduciary relationship among the employees and maintain trust and confidence. However, our drivers and maintenance crew will be the same person. One utility man is in charge with the cleanliness and security of the office.

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CHAPTER VII RECOMMENDATION The proponents conclude that this study is indeed not feasible. This is based from the figures being computed in our financials which resulted in losses for a five-year projection. But we somehow observed that the losses throughout the five years are decreasing. Since our prototype, MGCP, mainly depends their income on stage construction services and not on portable toilets, it is expected for our entity to incur loss especially at the beginning of the business. We therefore recommend that other services will be provided to the public after five years of service. Our group recommends that another study will be conducted in terms of different varieties that will be provided by our product. Categorizing the product into high, medium, and common classes of MobiLet could make the potential customers to be more enthusiastic in patronizing our product. In every class has its own differentiation. For example, the management may opt to design and put more elegant and expensive lightings on high class MobiLet. Aside from having classes in MobiLet, we also recommend the use of waterless urinals for both male and female. This technology is somewhat expensive compared to ordinary urinals but it would in turn lessen the utilities expense particularly the water usage. In addition to this, future proponents would show their cost-benefit analysis in using such technology. Another recommendation is the manufacture of MobiLet. In doing this, future proponents will need to consider the machineries and equipments needed for production, production analysis and management, and location of the manufacturing plant. The amount of labor cost and the time budget for producing one MobiLet for each class will need to be analyzed. A cost-benefit analysis will be provided at the end of the operating cycle. The proponents use their own septic tank for waste disposal. We further suggest to future proponents to outsource another company that would dispose the waste of the MobiLet. With this, future proponents will incur additional expenses for a better waste disposal system and in an area allowed by the government.

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APPENDIXES

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Revenue Assuptions based on peak season Legend: N= normal pricing L= lowered price H=high pricing W= wedding L N H 3,000/day 3,500/day 3800/day 7 5 6 2 3 5 4 3 2 4 4 5 44 154,000 58% 14 53,200 18% 3 2 1

Note: We assume that in every month there is at least one wedding that would happen. What has been stated in the remarks

Total 7 5 8 6 5 8 4 8 4 8 5 8 76 261,200 100%

January February March April May June July August September October November December Total Days Portalet Rented Total Revenue per Category Percentage: Days per category Total number of days 62| M o b i L e t S e r v i c e s

2 6

8 1 3 18 54,000 24%

Remarks N as intro to the market Love month, concerts Araw ng Dabaw, concerts Summer Clinic, Holiday Bazaar Flores de Mayo Kasalang Bayan Normal month Kadayawan Normal month Oktoberfest, concerts Undas, Pre-holiday events Holiday Bazaar, concert

are the significant events happen in the each month Lowered government The percentage of every pricing will be the basis on the following years. price is given to the

Revenue 2012 76 18 44 14 2013 91 22 53 16 2014 106 25 61 19 2015 122 29 71 22 2016 137 33 79 25

Lowered Normal High

3,000 3,500 3,800

24% 58% 18%

Note: Days rented is base on the market study given on the market study.

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