ON

TRADING BUSINESS


Name of Business: Pinoy Trading
Legal Form: Sole Proprietorship
Business Type: Trading
Products and/or services: Fertilizer,
Insecticides
Customers: Farmers
Owner: Pedro Penduco
Number of staff or employees: 2, Sales Clerk,
Bookkeeper, 1
delivery boy, 1 warehouseman
FUND REQUIREMENTS
AND SOURCING
Requirements Source of Funds
Total Cost Equity OWWA Loan


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

Working Capital 300,000.00 300,000.00
--------- -------- ----------
TOTAL P425,000.00 P125,000.00 P300,000.00
====== ====== =======
MARKETING PLAN
Products to be sold : Fertilizer and
Insecticides
Target Customers: Farmers
Location: Neighborhood and Nearby
Places of San Ricardo, Talavera,
Nueva Ecija
Competition and competitive
advantage:
Competitors



ABC Trading

Bagong Buhay
Coop.

Pinoy Trading
Present
estimated
Capitalization

P500,000.00

1,000,000.00

300,000.00
No. of years
in
Operation


3

10
Comparative
Pricing
High
x

Ave.



X
Low






X
WHY WOULD PEOPLE BUY MY PRODUCTS
AND/OR SERVICES INSTEAD OF MY
COMPETITORS?
Pinoy Trading will be offering special
discounts to customers with good credit
standing. We will be selling products of
good quality with low price and will make
sure that customers are our top priority by
providing excellent customer assistance and
free on-time delivery for every P5,000.00
worth of products purchase.
Expected
Sales/Month
Product Pricing
100 cavans of fertilizer at
P1,500/cavan and P25,000.00
to P50,000.00 insecticide.
Products will be sold at 25%
mark up and will be offering
3% special discounts to good
customers. Compare to our
competitors, our products
will be selling at low price but
of good quality.
BUSINESS LOCATION
Pinoy Trading is located at San Ricardo, Talavera,
Nueva Ecija along provincial road near San Ricardo
National High School and Brgy. Hall of Brgy. San
Ricardo. It is very accessible to nearby places because
of concrete roads and there is electricity supplied by
Nueva Ecija Electric Cooperative. San Ricardo,
Talavera and neighboring places are 98% agricultural
area.
METHODS OF DISTRIBUTION
METHOD

Free Delivery





Delivery with Charge
DETAILS

P5,000.00 worth of
products purchased
within San Ricardo,
Tal., Nueva Ecija
Gasoline

Within the area with a
minimum charge of
P150.00/delivery,
outside Talavera
P300.00/delivery
Gasoline
COST





P 50.00/delivery






P100.00/delivery
TYPES OF PROMOTION/ADVERTISING
TYPE

SIGNAGE



STEAMERS/TARPAULIN




POSTERS/FLYERS
DETAILS

TO BE INSTALLED IN FRONT OF
THE STORE


TO BE INSTALLED IN CROSSING
CABANATUAN CITY



TO BE DISTRIBUTED IN NEARBY
PLACES
COST

P 500.00



P1,000.00




P500.00
TECHNICAL
AND
ORGANIZATIONAL PLAN
MANPOWER COMPLEMENT
POSITION


Manager








Cashier
BRIEF DESCRIPTION


Shall be responsible in
managing the business.
The decision maker and
primary responsible in the
business operations.




Shall be responsible for
cash outflows and inflows.
NO.
REQ
D


1
SALARY/WAGE
RATE


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



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


POSITION


Sales Clerk








Sales
Clerk/Bookkeep
er
BRIEF DESCRIPTION


Shall be responsible in the
daily sales. Shall attends to
customer needs. Shall
report and prepare daily
sales.




Shall be responsible for
daily sales. Since shes also
the bookkeeper she shall be
responsible in recording of
the daily sales and daily
transactions. Shall prepare
financial reports for review
of the owner/manager.
NO.
REQ
D


1







1
SALARY/WAGE
RATE


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



P4,000.00 subject
to salary increase
depends on the
net income of the
business.

POSITION


Delivery Boy








Warehouseman
BRIEF DESCRIPTION


Shall be responsible in the
delivery of products
purchased by customers.
Shall submit to bookkeeper
the delivery receipt. Shall
be responsible in the
maintenance of delivery
vehicle.

Shall be responsible for in
and out of products. Shall
prepare the inventory
report and shall be
responsible for monthly
physical inventory under
the supervision of the
owner/manager.

NO.
REQ
D


1







1
SALARY/WAGE
RATE


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



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

MACHINE/EQUIPMENT REQUIREMENT
MACHINE EQUIPMENT

Delivery Vehicle


Furniture and Fixtures


Office/Store Renovation
NO. REQD

1



UNIT COST

P100,000.00








TOTAL COST

P100,000.00


5,000.00


20,000.00
Organizational Chart
Owner/ Manager/
Cashier
Sales Clerk Bookkeeper
Warehouse
Man
Delivery
Man
FINANCIAL
ASPECT
BASIC ASSUMPTIONS
Working Capital (OWWA Loan) payable in one year
P300,000.00
Interest on Loan 7.5% p.a. with grace period of two
months
Free delivery for a minimum purchase of P5,000.00
P300 delivery charge outside Talavera, Nueva Ecija
P150.00 delivery charge within
25% mark-up on products sold
Salaries and Wages
1 Delivery boy P3,000.00/month

1 Sales Clerk P 3,000.00/month
1 Sales Clerk/Bookkeeper 4,000.00/month
1 Delivery Boy 3,000.00/month
1 Warehouseman 3,000.00/month
Power, Light and Water
Electricity P700.00/month
Water 300.00/month
Office Supplies 500.00/month
Taxes and Licenses
BIR/Business Permit (Mayors Permit), DTI/DOLE
Permit(to be amortized in one year) 4,000.00
Fuel and Oil for Delivery of products sold
2,000.00/month
Trans. And Travelling Expenses 2,000.00/month
Promotional Expenses
Signage,Tarpaulin,flyers 2,000.00


Plant Property
and Equipment

Delivery Vehicle

Furniture and
Fixture

Store
Construction/Ren
ovation


COST

P100,000.00

5,000.00



20,000.00


ESTIMATED LIFE

10 years

5 years



5 years

DEPRECIATION
PER MONTH

P833.33

83.33



333.33
Sales per month 100 cavans of Fertilizer at
P1,500.00/cavan and P62,500.00

Purchases per month depends on Cash Available for
Use
PINOY TRADING
Projected Statement of Cash Flow
January 1 to March 31, 2015
January February March
CASH INFLOWS:
Loan Proceeds (OWWA) 300,000.00
Net Sales 212,050.00 212,050.00 212,050.00
TOTAL CASH INFLOW(Available 512,050.00 212,050.00 212,050.00
for use)
Less: CASH OUTFLOWS:
Purchases 290,000.00 194,000.00 194,000.00
Salaries and wages 13,000.00 13,000.00 13,000.00
Power, Light and water 1,000.00 1,000.00 1,000.00
Office Supplies 500.00 500.00 500.00
Taxes and Licenses 4,000.00
Trans. And Travelling Exps. 2,000.00 2,000.00 2,000.00
Fuel and Oil Expenses 2,000.00 2,000.00 2,000.00
Promotional Expenses 2,000.00
TOTAL CASH OUTFLOW 314,500.00 212,500.00 212,500.00
NET CASH BEFORE DEBT
SERVICE 197,550.00

(450.00) (450.00)
Less: Debt Service
Loan Payable (Principal) 0 0 25,000.00
Interest on Loan 0 0 1,875.00
Total Debt Service 0 0 26,875.00
NET CASH FLOW AFTER DEBT 197,550.00

(450.00) (27,325.00)
SERVICE
Add: Cash Bal. Beginning 0

197,550.00 197,100.00
CASH BALANCE-END 197,550.00

197,100.00 169,775.00
PINOY TRADING
Projected Income Statement
For the First Quarter Ended, 2015
January February March
SALES 212,500.00 212,500.00 212,500.00
Less: Sales Discounts 450.00 450.00 450.00
Net Sales 212,050.00 212,050.00 212,050.00
Less: Cost of Sales
Beg. Inventories 0.00 120,000.00 144,000.00
Add: Purchases 290,000.00 194,000.00 194,000.00
Less: Puchases Returns &
Allow. 0.00 0.00 0.00
Purchase Discounts 0.00 0.00 0.00
Goods Available for Sale 290,000.00 314,000.00 338,000.00
Less: Merchandise
Inventories 120,000.00 144,000.00 168,000.00
COST OF SALES 170,000.00 170,000.00 170,000.00
Gross Income 42,050.00 42,050.00 42,050.00
Less: Operating Expenses
Salaries and wages 13,000.00 13,000.00 13,000.00
Power, Light and water 1,000.00 1,000.00 1,000.00
Office Supplies 500.00 500.00 500.00
Taxes and Licenses 333.33 333.33 333.34
Trans. And Travelling
Exps. 2,000.00 2,000.00 2,000.00
Fuel and Oil Expenses 2,000.00 2,000.00 2,000.00
Promotional Expenses 2,000.00 0.00 0.00
Depreciation Expense 1,249.99 1,249.99 1,250.02
Total Operating Expenses 22,083.32 20,083.32 20,083.36
Net Income from
Operation 19,966.68 21,966.68 21,966.64
Less: Interest on Loan 1,875.00
Net income Before Tax 19,966.68 21,966.68 20,091.64
Provision for Income tax 5,990.00 6,590.00 6,027.49
NET INCOME 13,976.68 15,376.68 14,064.15
PINOY TRADING
Projected Balance Sheet
For the First Quarter Ended, 2015
January February March
ASSETS:
Current assets:
Cash on Hand 197,550.00 197,100.00 169,775.00
Merchandise Inventories 120,000.00 144,000.00 168,000.00
Prepaid Expenses 3,666.67 3,333.34 3,000.00

Total Current Asset 321,216.67 344,433.34 340,775.00
Plant, propert and Equipment:
Delivery Vehicle 100,000.00 100,000.00 100,000.00
Less: Accumulated Depreciation 833.33 1,666.66 2,500.00
99,166.67 98,333.34 97,500.00
Store Construction 20,000.00 20,000.00 20,000.00
Less: Accumulated Depreciation 333.33 666.66 1,000.00
19,666.67 19,333.34 19,000.00
Furniture and Fixtures 5,000.00 5,000.00 5,000.00
Less: Accumulated Depreciation 83.33 166.66 250.00
4,916.67 4,833.34 4,750.00
TOTAL ASSETS 444, 966.68 466,933.36 462,025.00
LIABILITIES AND
CAPITAL
Loans Payable (OWWA) 300,000.00 300,000.00 275,000.00
Provision for Income Tax 5,990.00 12,580.00 18,607.49
Accrued Expenses
Payable
Total Liabilities 305,990.00 312,580.00 293,607.49
CAPITAL:
Pedro Penduco Capital 125,000.00 125,000.00 125,000.00
Net Income 13,976.68 29,353.36 43,417.51
CAPITAL END 138,976.68 154,353.36 168,417.51
TOTAL LIABILITIES AND
CAPITAL 444,966.68 466,933.36 462,025.00




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