I.

INTRODUCTION
Ozamiz City is one of the places all over Northern Mindanao
where majority of schools and business establishments are
located. People from neighboring places such as Lanao del Norte,
Zamboanga del Sur, other places in Misamis Occidental, etc. went
to this place to study and to do a job. Many of them have work
and classes until evening. Sometimes their energies were drained
from their activities and get tired to go home from their
respective places. In addition, the cost if they will go home
every day is high; especially when they lived in the area far
from Ozamiz City. For practicality and to minimize their
expenses, they just rented out a room for them to stay during
weekdays. They rented boarding houses, apartments, dormitories,
etc. Among these, many preferred dormitories because of its
security and service.
Dormitory is a residence hall consisting of sleeping
quarters or known as rooms that commonly holds a large number of
people. It commonly provides services such as cleaning, laundry
and specially security. Dormitory living can make the transition
easier, combining the opportunity for freedom and fun with
reasoning comfort and security.
The demand for housing accommodations is increasing.
Establishment of dormitory at Ledesma St, Aguada, Ozamiz City is
the purpose of the study to provide students and workers, came
from distant places, with a comfortable living.




II. EXECUTIVE SUMMARY
A. Project Title : Wizard Dormitory
B. Project Site : Aguada, Ozamiz City
C. Nature of the Project : Operation
D. Type of Business : Partnership
E. Name of Partners : Jonard Cosmod
& Address Rebe, Lala,
Lanao del Norte

Lovely Shaynne Lim
Talic, Oroquieta City
Misamis Occidental









III. MARKET FEASIBILITY

A. Product Description
The proposed business is a 3-storey dormitory with a
laundry service in the ground floor. The dormitory is for both
gender occupants. The dormitory is divided into two: for boys
dormitory and for girls dormitory. Different entrances and
exits are allotted for each dormitory. The occupants can opt for
two types of housing accommodation: (a) rooms for rent and (b)
bed space. The room for rooms for rent accommodation has a
capacity of 2 persons. The room for bed space accommodation has
a capacity of 4 persons. The laundry service is open to both
occupants and walk-in customers.
Occupants are busy on their respective daily activities.
Dormitory offers services that make the boarders comfortable and
easy in their living. Services include security, laundry and
cleaning. Security is of safety of boarders living therein that
guards the building all day until it closes at 9 in the evening.
Laundry is located at the ground floor which is open to public
also. Laundry is of personal cost by the boarders. They are not
allowed to wash clothes in bathrooms. The cleaning of rooms is
optional. It could be done by the staff of the dormitory or by
the boarders themselves. However, the cleaning of the
environment is to be done daily. This is to ensure that the good
ambiance therein is maintained. In addition to the services,
wifi is also available. Internet is in need especially for the
students in doing their assignments and projects. They do not
need to go out to an internet shop in doing their research.
However, wifi can be used until 12 midnight only. This is for
the purpose that the staff does not let the occupants sleep very
late at night.
B. Demand

For the past three years, the numbers of population of
individuals who are coming from neighboring provinces,
municipalities and cities of Misamis Occidental and are working
in the City of Ozamiz are increasing significantly. Most of them
prefer to rent a bed space or room or an apartment as it would
cost them much when travelling every day.

The students and workers population growth rate in Ozamiz
City is about 10% and 3% respectively. The number of freshmen
who enrolled determines the growth rate. The new enrollees and
are the possible occupants of the dormitory.

The numbers shown below are based on estimates.

The table below shows the summary of the population of new
workers and enrollees who are working and pursuing college
education in Ozamiz City, respectively. (show here how you
arrive the growth rate of 10% and 3%)

Individuals who rented
in Ozamiz City (not
sure with this terms)
Population Percentage of
Average
Increase per
Year
2013 2012 2011
New Workers 318 309 300 3%
New Enrollees 2178 1980 1800 10%




C. Supply
Based on inquiry and data gathered, there are 40 (how many
dormitories or room/apartments or housing accommodation for
workers and students are existing in the city?) Most of them are
already full. If there will be new workers or students to the
city, there will be difficulty in looking for a place to stay
with at an affordable rental fee. Although there were people who
migrates or transfer from Ozamiz City to another place, Ozamiz
has many comers than goers.

D. Demand and Supply Analysis
The supply of the dormitories or other housing accommodations
in Ozamiz City relatively can no longer meet the demand of the
students and workers, that came from the distant place for
housing accommodation is evidently high due to the increase of
the population yearly at 3% for workers and 10% for students.
Therefore, there is a necessity to increase the supply for
housing accommodations.

E. Price Study
The occupants can opt for two types of housing
accommodation. These are: (a) rooms for rent and (b) bed space.
The rental rate for each type follows:
a. Rooms for rent - Php5,000 per room
b. Bed space - Php1,300 per person
Included in the amount stated above are the use of light,
wifi, water, and electricity for charging of cellular phone and
tablet only. For the use of other appliances and gadgets, an
additional payment of Php100 per appliance or gadget is
implemented. These appliance and gadget are limited only to the
following: laptop, television and electric fan. If the occupant
will use an appliance and gadget other than stated above, a
special rate will be applied. The rates implemented are based in
the following considerations:
a. Location of the dormitory in the city;
b. Convenience and security of the dormitory;
c. Costs of building the dormitory;
d. Costs that will be incurred during the operation such as
salaries, rent, electricity, water, etc.; and
e. The use of equipments.
For laundry services, a rate of Php25 per kilo of the
laundry is implemented. The following factors are considered in
establishment of price:
a. Salaries of laundry personnel;
b. Costs of supplies used such as detergent, fabric
conditioner, bleach, etc.;
c. Cost of electricity and water to be used; and
d. The use of laundry equipments.

F. Factors Affecting the Market
The factors affecting the market are follows:
a. Location
Location refers to the place where the dormitory is
located, whether its near to the school site or
working site of the target customers or not. Many
prefer to rent near at their respective sites or at
walking distance only.


b. Price
This refers to the rate of rent that will be paid
during the stay of the dormitory, whether it is
affordable or not. The prospect costumers not only
refers to the affordability, they considered also the
appropriateness of the price to the benefits they will
be received.
c. Building
This refers to the structure of the building, whether
its attractive or not. It also refers to the level of
cleanliness and ventilation of the building. Many
prefer to rent in a comfortable place, where its
clean and well ventilated.
d. Services Offered
This refers to the services offered in the dormitory,
such as cleaning, laundry, and security. Many prefer
to have a living with less complexity; moreover, they
want a secured living.
e. Availability
This refers to the availability of the space of the
dormitory, whether it can accommodate further more an
occupant or not.
f. Competitors
This refers to the number of the neighboring
competitors. These include other dormitories as well
as boarding houses.
g. Population
Refers to the population of the students and workers
from distant places to study and do a job in Ozamiz
City. If the population decreases, the demand for
dormitories also decreases and if it increases the
demand will also increases.
G. Marketing Program
The target customers of this project are the students and
workers who dont have place to live during their schooling and
working days and those who aimed for comfortable and secured
living.
Due to high demand of dormitories, theres no need of
extensive advertisements of the availability of the dormitory. A
signboard to be placed at convenient places such as streets,
parks, cafeteria, and other public places, will effectively do
it. Posting and advertising it through social sites like
Facebook will also be efficient.














IV. TECHNICAL FEASIBILITY

A. The Product
Services offered by the dormitory include security,
laundry and cleaning. Security guard is on duty all day and all
night. Day shift is at 6 in the morning until 6 in the evening
and night shift is at 6 in the evening until 6 in the morning.
There will be 2 security guards in the dormitory. Laundry is
located at the ground floor which is open to public also.
Laundry is of personal cost by the boarders. They are not
allowed to wash clothes in bathrooms. The laundry costs Php25.oo
per kilo. The laundry includes washing, drying, and ironing of
clothes. The occupants and customers may get their laundry after
24 hours. The cleaning of rooms is optional. It could be done by
the staff of the dormitory or by the boarders themselves.
However, the cleaning of receiving area up to the hallways on
each floor is to be done daily. In addition to the services,
wifi is also available. Internet connection is in need
especially for the students in doing their assignments and
projects. Going to internet shop for their research is not
necessary. However, connection cuts-off at 12 midnight.

B. Accommodation Process
The dormitory accepts occupants until all rooms are
occupied. A one-month deposit and one-month advance must be paid
by each occupant. Collection of payment is to be made every
first week of the month regardless of the date the tenant
occupied in. A penalty of 10% shall be made thereafter. Rooms
for rent will have (2) two occupants in each room, and (4) four
for each bed space rooms.
C. Business Location
The dormitory is to be established in Laurel cor., Ledesma
St. in Barangay Aguada, Ozamiz City with an area of 760 square
meters. The location is convenient for the students and workers.


Source: Google map

D. Business Layout

E. Building and Facilities
Furniture and fixtures: Quantity Price Total Amount
-single decks 16 1,000 16,000
-double decks 64 2,000 128,000
-cabinets 40 2,500 100,000
-long tables ( study hall) 4 1,000 4,000
-small tables 40 500 20,000
-benches (study hall) 8 200 1,600
-chairs 45 100 4,500
-sala set 2 6,000 12,000
-television 1 12,000 12,000
-electric fans 3 1500 4500
-water dispenser 6 1,500 9,000
total

311,600


Quantity Price total amount
Equipments:

-washing machine 2 30000 60000
-electric dryer 2 25000 50000
-electric iron 2 1800 3600

113600

In the ground floor or 1
st
floor of the dormitory, the
laundry area is located as well as the receiving area, and the
rooms for rent. There will be 2 washing machines, 2 electric
dryers and 2 electric irons for the use of laundry service. In
the receiving area, there will be 2 sala sets, a television, and
3 electric fans and water dispenser. The boys dormitory and
girls dormitory both have 4 rooms for rent. In each room, 2
single decks, 1 cabinet, 1 study table are available. Each room
has its own comfort room.
In the 2
nd
floor and 3
rd
floor, sixteen rooms for bed space
are available and each room has a maximum of 4 persons. In each
room, 2 double decks, 1 cabinet, 1 study table are available.
Water dispenser is also available on each floor.
The rooftop of the dormitory serves as the occupants study
hall. There will be 4 long tables available for them.

F. Utilities

G. Waste Disposal
Wastes and garbages in each room should be thrown by the
occupants in the trashcan placed in the hallway and to be
collected by the utility personnel every morning. The garbages
and wastes collected are to be disposed outside the dormitory
until collected by the utility men from the local government.

H. Production Cost
a. Fixed Costs
Operating Costs:


Monthly Fixed Cost Yearly fixed Cost
Utilities 18,000.00 216,000.00
Salaries 65,000.00 780,000.00
Repairs and Maintainance

10,000.00
Total

1,006,000.00
Administrative Costs

Insurance Expense

125,000.00
Taxes and Licenses

8,000.00
Interest Expense

250,000.00
Total

383,000.00
Total Fixed Cost

1,389,000.00

b. Variable Costs
Supply Expense


Cost per unit
no. of kilos will
consume in each
unit
Cost per kilo
Detergent powder 150 45 3.33
Bleach 60 25 2.40
Fabric conditioner 120 60 2.00
Expected Cost per kilo

7.73
Utilities Cost For Additional use of gadget/
appliance:


Revenue in Each
additional
Gadget/appliance
Percentage of Cost
to Revenue
Cost in each
additional gadget
or appliance
Utilities 100 75% 75

c. Non-financial costs
Depreciation

Assets Cost
Estimated life in
yrs.
Yearly Depreciation
Building 24,650,000.00 35.00 704,285.71
Furniture and Fixtures 311,600.00 8.00 38,950.00
Equipment 113,600.00 10.00 11,360.00
Total yearly Depreciation

754,595.71


I. Labor Requirements

number
of
employee
Salary
rate
per
month
Total
Manager 1 12,000 12,000
Bookkeeper 1 8,000 8,000
Caretaker 1 8,000 8,000
Utility Personnel 2 5,000 10,000
Laundry In-charge 1 8,000 8,000
Laundry Personnel 1 6,000 6,000
Security guard -
morning shift 1 6,000 6,000
Security guard -
night shift 1 7,000 7,000
Total salaries per
month

65000




1. Manager
The manager is responsible for the over-all planning and
policy formation. He makes all decisions that affect the
operation of the business. He also collects the monthly rentals
of the boarders. He is also in-charge of budget preparation and
disbursement.
2. Bookkeeper
Bookkeeper is responsible for recording the business
transactions in the books and filling business records and
documents. She computes the tax due and payable to the
government. She keeps the financial records and prepares
statements that present the financial position of the business
and the changes in the financial position and the results of
business operations.

3. Caretaker
The caretaker is responsible for planning and controlling
decisions within the authority as to the betterment of the
dormitory. She assigns and guides the utility personnel to
different works to be done in the dormitory. She often consults
and watches whether the occupants are following the agreed rules
and regulations.

4. Utility Personnel
She is responsible in maintaining the cleanliness of the
dormitory.

5. Laundry In-charge
He is the one who accepts the customer clothing for
laundry. He also accepts the customers payment. He directs the
laundry personnel to different works to be done in the laundry
store.

6. Laundry Personnel
Laundry personnel is responsible for the washing, ironing
and folding of all camper and customers clothing. He ensures
that the clothing of each customer is placed in the correctly
labeled bag and placed in the correct pick-up area.

7. Security Guard
He is responsible for patrolling the premises of dormitory
to detect suspicious activity, assists occupants, and ensures
the safety of occupants. Morning shift starts from 6 in the
morning until 6 in the evening. Night shift starts at 6 in the
evening until 6 in the morning.
















V. FINANCIAL FEASIBILITY

A.FINANCIAL ASSUMPTION
a. The partners have an initial investment of Php14,000,000
each. The total initial investment is Php28,000,000.
For additional capital, a long-term debt of Php2,500,000
with a 10% interest will be borrowed. It is payable in 5
years.

b. The land to be used for the project will be purchased. The
expected cost of the land at the time of acquisition is
Php7,500 per square meter. The land to be acquired has an
area of 726 square meters (22m X 33m). The estimated cost
of the land is Php5,445,000.

c. The estimated cost of materials in the construction of the
building is Php17,000,000. The expected cost of labor and
the contractors fee is 45% of the cost of material which
is Php7,650,000. The total estimated cost of the building
is Php24,650,000. The estimated life of the building is 35
years and no residual value.

d. Furniture and fixtures has a total cost of Php311,600. This
includes single decks, double decks, cabinets, long tables,
small tables, benches, chairs, sala sets, television,
electric fans, and dispensers. All furniture and fixtures
had an estimated life of 8 years.

e. Equipments has a total cost of Php113,600. This includes
washing machines, electric laundry dryer and electric
irons. All equipments had an estimated life of 10 years.

f. The depreciation method to be used is straight-line method.

g. The monthly rental rates are: (a) Php5,000 per room for
rooms for rent accommodation, and (2) Php1,300 per person
for bed space accommodation. The rate will increase 10% in
second year of the operation.

h. On the first year of the operation, it is expected that
only 90% will occupy the bed space accommodation and 87.5%
in room for rent accommodation. In second year of
operation, it is expected that 95% will occupy the bedspace
accommodation and 100% for room for rent accommodation.

i. An additional of Php100 pesos per appliance/gadget is
implemented for the additional use of gadgets and
appliances. It is expected that 130 additional
appliances/gadgets will be used, and it will increase by
10% in the second year.

j. For the additional use of gadgets and appliances, the
estimated cost of the electricity consumed is 75% of the
amount collected.

k. The monthly rental will be collected at the first week of
the month.

l. It is expected that only 85% of the occupants will pay on-
time. The remaining 15% is expected to pay their rent after
a month.

m. The rate for laundry services is Php25 per kilo. The rate
will increase by P2 in second year.

n. The expected salary will be paid every month is Php65,000.

o. Lights, waters, and other utility expenses of Php18,000 a
month is expected to increase by 5% in the second year. The
electricity to be consumed for the additional gadgets and
appliances by the occupants in not included in Php 18,000.

p. Repairs and maintenance of Php10,000 is expected to
increase by 10% in the second year.

q. Insurance of the building costing Php125,000 will be paid
yearly.

r. Permits and Licenses of Php8,000 is expected to be paid
yearly.

s. In the first year of the operation, the laundry services
has an expected services will be rendered for 1,740 kilos
of laundry a month. It is expected to increase by 30% in
the second year.

t. The estimated cost in laundry services for laundry supply
expense such as detergent powder, bleach and fabric
conditioner is Php7.73 per kilo of the laundry.

u. The partners is expected to have a drawing of Php250,000 in
first year and Php300,000 in second year.

v. Since the type of ownership of the proposed business is
partnership, the burden of paying income taxes will go to
partners.
B. Projected Income Statement
Amount shown below is in pesos.
Wizards' Dormitory
Projected Income Statement for 1st and 2nd Year of Operation
for 1st and 2nd Year of Operation


1st Year 2nd Year
Revenues:

Dormitory (Sched. 1)

2,370,000.00

2,775,960.00
Laundry Services (Sched. 2)

522,000.00

732,888.00
Total Revenues

2,892,000.00

3,508,848.00

Expenses:

Supply Expense (Sched. 3)

161,402.40

209,823.12
Utility Expense (Sched. 4)

333,000.00

355,500.00
Salaries Expense (Sched. 5)

780,000.00

780,000.00
Depreciation Expense (Sched. 6)

754,595.71

754,595.71
Repairs and Maintenance

10,000.00

11,000.00
Insurance Expense

125,000.00

125,000.00
Taxes and Licenses

8,000.00

8,000.00
Interest Expense

250,000.00

250,000.00
Total Expenses

2,421,998.11

2,243,918.83


Net Income

470,001.89

1,264,929.17



C. Projected Balance Sheet
Amount shown below is in pesos.
Wizards' Dormitory
Projected Balance Sheet
at the end of Every Year for 1st Two Years of Operation


1st Year 2nd Year
ASSETS

Current Assets:

Cash 676,722.60 2,091,367.98
Accrued Revenue (Sched. 7) 27,675.00 32,554.50
Total Current Assets 704,397.60 2,123,922.48

Non-current Assets:

Land 5,445,000.00 5,445,000.00
Building 24,650,000.00 24,650,000.00
Less: Accumulated Depreciation (704,285.71) (1,408,571.43)
Equipment 113,600.00 113,600.00
Less: Accumulated Depreciation (11,360.00) (22,720.00)
Furnitures and Fixtures 311,600.00 311,600.00
Less: Accumulated Depreciation (38,950.00) (77,900.00)
Total Non-Current Assets 29,765,604.29 29,011,008.57


Total Assets 30,470,001.89 31,134,931.05

LIABILITIES AND PARTNERS' EQUITY


Liabilities

Current Liabilities - -
Non-current Liabilities

Long-term debt 2,500,000.00 2,500,000.00
Total Liabilities 2,500,000.00 2,500,000.00

Partners' Equity

Cosmod, Equity (Sched. 8) 13,985,000.94 14,317,465.53
Lim, Equity (Sched. 8) 13,985,000.94 14,317,465.53
Total partners' equity 27,970,001.89 28,634,931.05

Total Liabilities and Partners' Equity 30,470,001.89 31,134,931.05

D. Projected Statement of Cash Flow
Amount shown below is in pesos.
Wizards' Dormitory
Projected Statement of Cash Flows
for 1st and 2nd Year of Operation


1st Year 2nd Year
Operating cash flow

Net income 470,001.89 1,264,929.17
(Increase)/decrease of Accrued Revenue (27,675.00) (4,879.50)
Depreciation Expense 754,595.71 754,595.71
Total cash flow from operation 1,196,922.60 2,014,645.38

Investing cash flow

Acquisition of land (5,445,000.00) -
Construction of building (24,650,000.00) -
Acquisition of Furniture and Fixtures (311,600.00) -
Acquisition of Equipments (113,600.00) -
Total cash flow from investing activities (30,520,200.00) -

Financing cash flow

Investment of the partners 28,000,000.00 -
Received from long-term debt 2,500,000.00 -
Drawings (500,000.00) (600,000.00)
Total cash flow from financing activities 30,000,000.00 (600,000.00)

Total Cash Flow in a year 676,722.60 1,414,645.38
Add: Cash, beginning balance - 676,722.60
Cash, ending balance 676,722.60 2,091,367.98








E. Schedules to Financial Statements

a. Schedule 1- Revenue for Dormitory


Year 1
Rental Rate
number of
bed space/
rooms
Expected %
to occupy
Expected
multiple
to rate
Revenue
per
Month
Revenue in
a Year
Room for rent Accommodation 5,000 8 87.5% 7 35,000 420,000
Bed Spacer 1,300 128 90.0% 115 149,500 1,794,000

Additional Gadget and
Appliance 100

130 13,000 156,000

Total revenue in year 1

2,370,000


Year 2
Rental
Rate
number
of bed
space/
rooms
Expected %
to occupy
Expected
multiple
to rate
Revenue
per
Month
Revenue in
a Year
Room for rent Accommodation 5,500 8 100.0% 8

44,000

528,000
Bed Spacer 1,430 128 95.0% 121

173,030

2,076,360
Additional Gadget and
Appliance 100

143

14,300

171,600
Total revenue in year 2


2,775,960




b. Schedule 2- Revenue for Laundry Services

Year 1

Rate per
kilo
kilos of laundry
served in a
month
Monthly
Revenue
Yearly
revenue
Laundry services 25 1,740 43,500 522,000











Year 2

Rate per
kilo
kilos of laundry
served in a
month
Monthly
Revenue
Yearly
revenue
Laundry services 27 2262 61074 732,888




c. Schedule 3- Supply Expenses


kilos of
laundry served
in a month
Cost per kilo
Suppy Expense
in a Month
Yearly Supply
Expense
Year 1 1,740 7.73 13,450.20 161,402.40
Year 2 2,262 7.73 17,485.26 209,823.12




d. Schedule 4- Utility Expense


Monthly Revenue
for Additonal
Gadget/Appliance
Percentage
of Cost to
Revenue
Monthly cost
for Additional
Gadget/App.
Predetermined
Utility exp. In a
month
Monthly
Utility
Expense
Yearly utility
Expense
Year 1 13,000 75% 9,750 18,000 27,750 333,000
Year 2 14,300 75% 10,725 18,900 29,625 355,500





e. Schedule 5- Salaries Expense


Number of
employees
Salary rate
per month
Total
Manager 1 12,000 12,000
Bookkeeper 1 8,000 8,000
Caretaker 1 8,000 8,000
Utility Personnel 2 5,000 10,000
Laundry In-charge 1 8,000 8,000
Laundry Personnel 1 6,000 6,000
Security guard - morning shift 1 6,000 6,000
Security guard - night shift 1 7,000 7,000
Total salaries per month

65,000
Yearly salaries Expense

780,000



f. Schedule 6- Depreciation Expense
Assets Cost
Estimated life
in yrs.
Yearly
Depreciation
Building 24,650,000 35 704285.71
Furniture and Fixtures 311,600 8 38,950
Equipment 113,600 10 11,360
Total yearly Depreciation

754595.71



g. Schedule 7- Accrued Revenue

Revenue for
the last month
of the year
(dormitory)
Expected
percentage of
Accruals
Expected
Accrued
Revenue at year
end
Year 1 184,500 15% 27,675
Year 2 217,030 15% 32,555



h. Schedule 8- Change in Partners Equity


Year 1 Year 2

Cosmod,
Capital 50%
Lim, Capital
50%
Cosmod,
Capital 50%
Lim, Capital
50%
Beg. Balance - - 13,985,000.94 13,985,000.94
Investment 14,000,000.00 14,000,000.00 - -
Share in Net Income

Year 1 -
470,001.89 235,000.94 235,000.94

Year 2 -

1,264,929.17

632,464.58 632,464.58
Less: Drawing (250,000.00) (250,000.00) (300,000.00) (300,000.00)
Ending Balance 13985000.94 13985000.94 14317465.53 14317465.53

F. Financial Analysis

A. Net Profit Percentage

1st Year 2
nd
Year

Net Income_
Revenue


470,001.89_ =16.25%
2,892,000


1,264,929.19 =36.05%
3,508,484

The percentage of net income to revenue for the first year
is 16.25% and it increases to 36.05% in second year. The
increase is favorable.

B. Return on Total Assets

1st Year 2
nd
Year

Net Income_
Total Assets


470,001.89_ =1.54%
30,470,001.89


1,264,929.19 =4.06%
31,134,931.05

The return on Total Assets on the first year is 1.54% and
it increases to 4.06% in second year. The increase is favorable.
C. Total asset turnover ratio

1st Year 2
nd
Year

Revenue_
Total Assets


2,892,000_ =0.094:1
30,470,001.89


3,508,484 =0.113:1
31,134,931.05

Total assets turnover measures the level of capital
investment relative to the revenue. It is calculated by
dividing the total revenue by the total assets. Total assets
turnover ratio is 0.094:1 in 1
st
year and it increases to
0.113:1 in second year. The increase is favorable.

D. Fixed Assets turnover Ratio

1st Year 2
nd
Year

Revenue_
Total Fixed
Assets


2,892,000_ =0.097:1
29,765,604.29


3,508,484 =0.121:1
29,011,008.57

Total assets turnover ratio measures the use of property,
plant and equipment relative to the revenue. Fixed assets
turnover ratio is 0.097:1 n first year and it increases to
0.121:1 in second year. It has favorable effect.

E. Times-interest earned (TIE)

1st Year 2
nd
Year

EBIT_
Interest Exp.


720,001.89_ =2.88X
250,000


1,514,929.19 =6.06X
250,000

TIE indicates the margin of safety for payment of fixed
interest charges. TIE is 2.88x in 1
st
year and increases to
6.06x in 2
nd
year. The TIE in both years is favorable.
F. Total Debt Ratio


1st Year 2
nd
Year

Total liability
Total Assets


2,500,000_ =.082:1
30,470,001.89


2,500,000 =.08:1
31,134,931.05

Total Debt Ratio measures the percentage of funds provided
by creditors. The total debt ratio in 1
st
year is 0.082:1 and
0.08:1 in 2
nd
year.

G. Debt to Equity Ratio
1st Year 2
nd
Year

Total liability
Equity


2,500,000_ =8.94%
27,970,001.89


2,500,000 =8.73%
28,634,931.05

Debt to equity ratio compares resources provided creditors
with resources provided by the investors. Debt to equity ratio
is .0894:1 in first year and 0.0873:1 in second year.










VI. SOCIO-ECONOMIC CONTRIBUTION

The establishment of dormitory in Aguada, Ozamiz City plays
an important role to the citys economy. It provides employment
to a maximum of nine people. Secondly, it contributes to the
income of the city. Lastly, this project helps meet the demand
of dormitories by the students and workers in the City.