132374048 Feasibility Studies Tsirt Printing

Chapter I INTRODUCTION A. Brief History of the Project Twenty first (21st) century is called the digita l age because it is the era of modern technologies that we are using in our ever yday life. These advance and sophiscated technologies help us to do our work eas ier and faster. One of the advance technologies is the digital t-shirt printer. It is one of the newest machine that was invented to satisfy our growing needs, wants and desires. Printed Tshirts are in demand nowadays that's why the researche rs chose to establish a Digital T-Shirt Printing Business. The proposed name of the business is ªWATTASHIRTº. This name was chosen because of its simplicity, unique ness and sweetness sound that can be easily distinguished by the market. The res earchers want to attract customers not only for its remarkable name, but signifi cantly the quality and standard of every printed shirts that it can produce. Thi s establishment is located at the 2nd floor of Mega Center the Mall,Gen. Tinio S t., Cabanatuan City financed by Mr. Roberto U. Cariazo Jr. This kind of business is a service type which needs to be established in a place where it is well pop ulated and should be easy to locate.With that the researchers have chosen the ri ght and the best location for the said business. ªWATTASHIRTº targets the people of Cabanatuan most especially the students in the nearby schools/universities. 1

B. Statement of the Problem The central problem of this study is the evaluation of the viability of establishing ªWATTASHIRTº, a digital t-shirt printing business h ere in Cabanatuan City, Nueva Ecija. C. Objectives The main objective of this study is to determine the viability and feasibility of the proposed venture. Specifically, objectives from the point of view of the four functional areas of management are as follows. 1. Marketing a. To identify the demand and supply for the products. b. To formulate marketing s trategies for a successful business operations. 2. Technical a. To develop the p rocesses involved in operationalizing the project in the most effective and econ omical way. b. To know the production requirement in the establishment of a digi tal printing business. 3. Organization and Management a. To design organizationa l set-up that is best suited for the proposed project. b. To determine the numbe r and qualifications of the people required to manage the project effectively. 2

4. Financial a. To identify the sources and mode of financing of the proposed bu siness. b. To make an estimate of the amount of initial investment required to e xecute the project. c. To present projected financial statement of the proposed venture for the next five years. d. To evaluate the profitabiliy, liquidity and stability of the proposed business venture. D. Significance of the Study The significance of the study has a great impact to the community and society as a whole, these are as follows: Firstly, to the pot ential customers they will have a personalized t-shirt at a very affordable pric e. Secondly, to the printing industry for it will improve the customers buying h abit, and of course the industry's merely stability as well. To the university, th is study will serve as a reference in the library. To show to the aspiring busin essman that this kind of business is profitable. 3

E. Scope and Limitations This study covers the establishment of ªWATTASHIRTº in Mega Center the Mall, Gen. Tinio St.,Cabanatuan City. gathered. This study was done within a regular term of second semester of school year 2009 -2010. Relevant dat as were gathered during this period. The survey covers those people in the mall. Generally, the target market of this business are the end users. This market in cludes the students, and those people who were t-shirt lovers. The limitations o f the researchers in the study is the actual distance of other possible customer s outside the vicinity of Mega Center the Mall, Gen. Tinio St., Cabanatuan City. This study is for academic purposes only. All necessary information are F. Methodology 1. Sources of Data The Researcher used two classes of data, prima ry and secondary data. a. Primary Data were obtained through survey questionnair es and interviews. A sample survey questionnaire was formulated by researchers f or the target market. This was validated by the five experts and five laymen bef ore administration. Experts are those directly involved or have experience in ru nning a business venture with some advancement in technology. A copy of the vali dation sheet and questionnaire are presented in Exhibit I-A and Exhibit I-B 4

respectively. Three hundred ninety five (395) copies of survey questionnaires we re distributed, all of which were retrieved. Interviews were conducted to those who have existing printing business. A copy of a sample letter of request for an interview and structured interview guide questions are presented in Exhibit I-C . b. Secondary Data were gathered from printed materials, books, magazines and r elated studies made on the subject. These materials were generated from National Statistics Office (NSO), Bureau of Fire Protection(BFP), Department of Trade an d Industry(DTI) and some of the website in the internet. 2. Research Design To y ield a meaningful and relevant information, the researcher used exploratory and descriptive methods. a. Exploratory Method. The researcher conducted survey and some interviews to some well known establishments who also practice the same bus iness. There were no printed studies regarding this type of business in Araullo University library however, lots of sufficient information were obtained through internet research and surveys. The result of interviews is presented in Exibit I-E. b. Descriptive Method. Descriptive method was used to gather and describe c omprehensively the characteristics of the target market's elements. The descriptio n is based on a sample size which represents the total population. Survey questi onaires were distributed randomly to the prospective clients to study and determ ine the demand and supply rate. 5

The formula in computing the sample size is: h= N w ere; h = sample size 1+Ne²

N =

stimat d population e = margin

rror

Th targ t mark t is compos d of l v n thousand on hundr d fifty (11, 150) ag s 10 ± 20, Nin thousand nin hundr d thirty fiv (9, 935) ag s 21 ± 30 and ight th ousand s v n hundr d fift n (8, 715) ag s 31 ± 55. Tabl I-A Targ t Mark t Popula tion 2009 Ag s 10 ± 20 11, 150 Ag Ag s s 21 31 ± ± 30 55 9, 935 8, 715 Total 29, 800 Sourc : M ga C nt r Mall manag m nt Th sampl siz computation.

of thr

hundr d nin ty fiv

(395) is r sultant of th

following

wh r ; h= 29800 1+29800 (5%)² h = 395 h = sample size N= 29800 e = 5% Th sampl siz was pro-rat d accodding to th w ight of ach cat gory in popula tion. On hundr d fifty fiv (155) copi s wh r distribut d to ag s 10 ± 20, On h undr d tw nty ight (128) copi s wh r distribut d to ag s 21 ± 30, On hundr d tw lv (112) copi s wh r distribut d to ag s 31 ± 55 r sp ctiv ly. 6

3. Tr atm nt of Data All quantitativ data gath r d w r proc ss or p rsonal m thod. Comparativ analysis was also us d to analyz cal information on variabl s involv d in for casting th figur s g asp ct w r inconsist ntly incr asing. H nc , proj ctions w r h th us of Statistical Straight-lin M thod. This m thod has a s as follows:

d using manual d data. Histori in th mark tin comput d throug formula that go

Y = a + bx À = åY - bå Ń Wh r ; X = is th assign d valu B = åXY- åXåY/n åX² - ( åX) ² N a = is th constant b = is th t r ń = numb r of y ars Y = is th giv n data To d t rmin th arning d sirabili ty of th inv stm nt, th following formula w r us d. a. N t Pr s nt Valu

(NPV). A sophisticat d capital budg ting t chniqu ; found b

y th proj cts initial invto stm from th pr s of nt capital. valu of its cas h subtracting inflow discount d at tha rat qual thnts inv stor's cost 7

para

Formula: Pr s nt Valu

of cash flow L ss: Cost of Inv stm nt N t Pr s nt Valu

b. Int rnal Rat of R turn (IRR) is a t chniqu us d to d t rmin th discount r at which quat s th pr s nt valu of cash inflows with th initial inv stm nt associat d with th proj ct. Th rat is actually th compound annual rat of r turn th inv stor will arn if it inv st in th proj ct and r c iv s th proj ct cash inflows. n IRR = å ___Ȧt____ = t=1 (1 + IRR ) t Wh r ; P = initial investment t = period Ȧ = cash f low k = cost of capital P Ȧt c. Profitability ind x (PI) is th flows to th inv stm nt.

ratio of th

pr s nt valu

Formula: PI = Pr s nt valu of cash flow/cost of inv stm nt 8

of th

futur

cash

To asc rtain th viability in t rms of soundn ss and condition of th impl m nt d, th following formula w r us d.

proj ct if

d. Curr nt Ratio is m asur of th numb r of p sos of curr nt ass t availabl m t curr nt obligation. It is b st-knoww liquidity m asur m nt. A curr nt ratio of l ss than on working capital.

indicat s th

to

firm has a n gativ

Curr nt Ratio = Curr nt Ass ts Curr nt Liabiliti s . Op rating P rformanc Ratios xamin th p rformanc of th manag m nt in th op rating busin ss. Th y ar divid d into two subcat gori s op rating ffici nc y and op rating profitability. .1 Op rating Effici ncy Ratios qu stion how manag m nt b using th forth in this study.

ass t th y hav

ffici nt would th

at th ir disposal bas d in th

plans s t

i. N t Fix d Ass t Turnov r Ratio is a m asur ass ts.

of th

proj cts utilization of fix d

ii. Equity Turnov r Ratio m asur s how us d in th proj ct 9

ff ctiv ly would th

own r's n t worth will b

Total Fix d Ass t Turnov r = R v nu Av rag Total N t Fix d Ass t Equity Turnov r = R v nu Av rag Equity .2 Op ra ting Profitability Ratios look at how good plans ar s t in gaining profit out o f th inv stm nt in th proj ct. i. Gross profit margin

quals p rc nt of sal s availabl

aft r

d ducting cost of goods sold. This p rc ntag is a availabl to cov r s lling g n ral and administrativ costs and also arn a profit. It indicat s th basic co st structur of th proj ct and its cost-priz position. ii. Op rating Profit Ma rgin r lat s th proj cts profit to its n t sal s . Th variability of this ratio is a prim indicator of roj ct. A high r ratio impli s that th company has a s and th r for infl xibl . iii. of sal s. iv. R turn proj ct's r turn on all th n t Profit Margin shows on v ry p so worth 10

mploy d. It m asur s r turn on all availabl

th busin ss risk of th p high r l v l of fix d cost on N t Equity indicat s th how much profit is g n rat d

int rnal funding.

Profit Margin = R turn on N t Equity = Profit R v nu G. R vi issu s c s and custom

Profit Av rag

N t Equity

w of R lat d Lit ratur Th lit ratur r vi w id ntifi s and gath rs k y about th quality and status of printing busin ss, including its influ n th rang of provisions for stud nts and som prof ssionals and possibl rs.

At th b ginning of th tw nti th c ntury, th T-Shirt quickly b cam an Am rica n favorit . Now, a c ntury lat r, at th b ginning of th tw nty-first c ntury, th T-Shirt r mains as popular as v r. Th Am rican T-Shirt b gan during WWI wh n Am rican troops notic d Europ an soldi rs w aring a comfortabl and lightw ig ht cotton und rshirt during th hot and humid Europ an summ r days. Compar d to th wool uniforms that th Am rican soldi rs wor , th s und rshirts w r cool r and mor comfortabl and th y quickly caught on with th Am ricans. Du to th i r d sign, th s shirts cam s, known in th had USAbas "T"anshirts or, word as w inkn owsimpl th m now, "TShirts". By th b1920 "T-Shirt" com official th Am rican English languag with it s inclusion in M rriam-W bst r s Dictionar y. By W.W. II, 11

both th Navy and th Army had includ d th T-Shirt as standard issu und rw ar. Initially p gg d as an und rgarm nt, th T-Shirt soon cam in to it s own on th big scr n. John Wayn , Marlon Brando and Jam s D an all shock d Am ricans by w aring th ir und rw ar on national TV. In 1951, Marlon Brando shock d Am ricans in his film "A Str tcar Nam d D sir " wh n his T-Shirt was ripp d off of his b ody r v aling his nak d ch st. By 1955, th T-Shirt was tol rat d worn without a noth r shirt cov ring it. Th n Jam s D an mad th T-Shirt r al cool in "R b l W ithout A Caus ". Jam s D an mad th T-Shirt a cont mporary symbol of r b llious youth. In th 60 s p opl b gan to ti dy and scr nprint th basic cotton T-S hirt making it an v n bigg r comm rcial succ ss. Advanc s in printing and dying allow d mor vari ty and th Tank Top, Muscl Shirt, Scoop N ck, V-N ck, and ma ny oth r variations of th T-Shirt cam in to fashion. Th T-Shirt was in xp nsi v , in styl , and could mak any stat m nt you car d to print. Th Am rican T-Sh irt cam into it s own during th lat sixti s and s v nti s. Rock and Roll band s b gan to r aliz that th y could mak significant amounts of mon y s lling th ir T-Shirts. Prof ssional Sports caught on and soon th officially lic ns d T-Sh irt b cam hot m rchandis . During 80 sas and th production of T-Shirts and th m chanics of printing on thth m incr d 90 th svolum and availability. Soo n th Am rican T-Shirt was b ing call d a commodity it m in th appar l industry . 12

H. D finitions of t rms Th following t rms ar d fin d as us d op rationally in this r s arch: a. Round n ck Shirts ± a collarl ss usually short sl v s knit shi rt without fast nings usually mad of cotton and worn for l issur and sports. b . Polo shirts ± a lightw ight casual shirt, usually mad of knitt d cotton with th small collar and botton d op ning at th n ck c. Lic ns ± a p rmit granting p r mission to ngag d in an activity that would oth rwis b ill g l. Th main purp os of a lic ns is to prot ct th public int r st. A lic ns d issu d by th gov rnm nt ag ncy is r quir d in ord r to pursu a c rtain occupantions, run c rtai n busin ss and njoy c rtain privil g s. d. Ink ± color d past us in printing . Printing ± th production of print d matt r. f. Propri torship ± is th capacity of an individual in ff ctiv and ffici ntly managing abusin ss towards custom r satisfaction and profitability of s rvic s. g. Propri tor ± an individual who owns th busin ss hims lf. h. Mark t ± can b cat goriz d into consum rs. i. D pr ciat ion ± th syst matic allocation of th d pr ciaabl amount of an ass ts ov r its u s ful lif . j. Cashi r - a p rson in charg of th cash transaction. k. D sign ± t h arrang m nt of parts, forms, color, sp cially as to produc an artistic unit . 13

l. D sign r ± a p rson whos work is making a d sign. m. Cotton ± a soft, whit , fib rous mattt r around th s ds of various plants of th mallow family. n. Rayon ± a ny of various t xtil fib rs produc d by pr ssing a c llulos solution through v ry small hol s and solidifying it in th form of filam nts o. Silk ± a fin , soft , shiny fib r produc d by th silkworm. p. Lin n ± thr ad or cloth mad by flax. q . Wool ± a soft, curly hair of som animals lik sh p and goat. r. Whol sal ± a s al of goods in r lativ ly larg quantiti s, usually at a low r cost p r it m. s . R tail ± th sal of goods in small quatiti s dir ctly to th consum r. 14

Chapt r II Mark ting Asp ct A. Product D scription B ing diff r nt to oth rs mak us uniqu and cool. W ar ngag in a digital t-shirt printing busin ss. Stat m nt and p rsonaliz d shirts nowadays ar r ally in d mand. W off r an instant print d shirt by using a digital printing machin which is b tt r than th oth r printing pr ss that only us s h at pr ss machin . W don't want our custom rs to wait for a long p riod of tim . W assur that our custom rs will only wait for a maximum of t n (10) minut s. Th machin that w us is th lat st t-shirt pr int r. W s ll a finish print d shirt. Th custom rs could choos th d signs th at th y want. Th y may choos th color siz and typ of shirts th y want. Satis faction of our custom rs is always our priority. B. Industry profil W ar in p rinting industry and th r ar many comp titors ngag d in th sam industry. W ar confid nt with th kind of busin ss that w hav v n though w kn w w hav a lot of comp titors b caus w know that w will b at all of th m through th us of our lat st digital print r. W ar conc rn with our custom rs' n d and sa tisfaction. Our pric is v ry affordabl . 15

Str ngths Th quipm nt us d is th lat st and n w st machin a printing company v r had. It could print at th maximum of t n (10) minut s. Th finish product is absolut ly cl an. No m ss at all. Th busin ss do sn' t r quir bulk printing of t ± shirts, it acc pts v n a singl pi c of printing works. Th busin ss off rs not just printing of t ± shirts it also has its finish products to s ll. W akn ss s Th ink consumption and l ctrical consumptions ar th only w akn ss s of th busin ss. Opportuniti s Th busin ss could also do p rsonaliz d things asid from printing t ± shirts. It could stablish anoth r branch in th n arby towns, barangays, and citi s. Thr ats Comp titions is a busin ss rivalry; comp ting for custom rs or mark ts would b a gr at thr at for th busin ss. Th r could b a lot of printing industri s around th city. Economic crisis as w ll could hav a gr at impact on th sal s of th busin ss and lastly th ft among th mploy s would also aff ct th op ration of th busin ss. 16

C. D mand D mand is th quantity of good that buy rs ar willing to buy. B for anyon could stablish a busin ss that h d sir , h must n d to know if th r is d mand in what v r kind of busin ss h 's willing to op rat . Cabanatuan City is consid r d as on of th most progr ssiv plac h r in Nu va Ecija. Mod rn t c hnology is alr ady spr ad out all ov r th City. Th Computation of proj ct d po pulation is pr s nt d at Exhibit II ± B and r sults of surv y qu stion is pr s nt d at Exhibit II ± A. All quantitativ data gath r d w r proc ss d using manual or p rsonal m thod. Comparativ analysis was also us d to analyz data. Historical information on variabl s involv d in for casting th figur s w r inconsist ntl y incr asing. H nc , proj ctions w r comput d through th us of Statistical St raight-lin M thod. This m thod has a formula that go s as follows: Y = a + bx À = åY - bå Ń X = is th assign d valu B = åXY- åXåY/n åX² - ( åX) ² N a = is th constant b = param t r ń = numb r of y ars Y = is th giv n data Wh r ; 17

Tabl II-A Historical Population of Nu va Ecija Ag s 15 ± 30 Class A ± C 1990 ± 2007 Y ar Population 1990 404, 316 1995 460, 859 2000 586, 940 2007 626, 023 Sourc : National Statistic Offic Tabl II - B Proj ct d Population Nu va Ecija Y ar 2010 2011 2012 2013 2014 D. S upply Th supply is th quantity of goods that s ll rs ar willing to s ll. If t h r is a d mand th r should always b a supply. Our busin ss is in printing in dustry th r ar many xisting comp titors. Kam raworld and Pictur fr nzy ar o ur insid comp titors. Th y ar acc pting t-shirt printing. Th y n d mor tim to do th printing b caus th y will bring it to manila. Th ir pric is high r c ompar to us. Octograpix, R. Macapagal and Pinoy adv rtising ar som of our out sid comp titors. Th y ar using h at pr ss and it tak s tim to do th job. Th y don't acc pt on tim printing b caus of v ry xp nsiv cost. Population 690, 3 83 804, 282 918, 181 1, 032, 080 1, 145, 979 18

E. D mand ± Supply Analysis Th r s arch r r cogniz s that th xisting capacity o f comp titors is not nough to satisfy th d mand of th mark t. Th data gath r d from th qu stion no. 1 of surv y qu stionnair s is th d mand of th propos d busin ss. B ing cons rvativ , th mark t shar is comput d by d ducting th hy poth tical proj ct d supply from th proj ct d d mand. This is bas d on th assu mption r gardl ss of continual supply from th xisting comp titors avail d by t h of th mark t, th r is still r maining shar for Watta shirt. To analyz th mark t shar m aningfully, th r s arch rs translat d th proj ct d d mand and proj ct d supply in mon tary t rms. Th proj ct d d mand of Watta Shirt is multi pli d to unit pric . Lik wis , th proj ct d supply of Watta shirt is multipli d to unit pric to arriv at th total amount. Th total amount is proj ct d supp ly is d duct d to th total amount of proj ct d d mand to g t th total amount o f unm t d mand. Th computation shows that th unm t d mand is s v n thousand i ght n (7, 018) on 2010 ight thousand on hundr d s v nty fiv (8, 175) on 2011 nin thousand thr hundr d thirty thr (9, 333) on 2012 t n thousand four hun dr d nin ty two (10, 492) on 2013 and l v n thousand six hundr d forty nin (11 , 649) on 2014. 19

Tabl II ± C D mand and Supply Y ar D mand Supply Unm t D mand Quantity 2010 2011 2012 2013 2014 833, 406 970, 901 1, 108, 396 1, 245, 892 1, 383, 386 826, 388 962, 726 1, 099, 063 1, 235, 400 1, 371, 731 7, 018 8, 175 9, 333 10, 492 11, 649 Round n ck tshirt Pric

250 250 250 250 250

Collar d t-shirt Mark t shar P so 1, 000, 000 1, 165, 000 1, 330, 000 1, 495, 000 1, 660, 000 Pric 310 310 310 310 310 P so 935, 580 1, 089, 650 1, 244, 030 1, 398, 720 1, 552, 790 P rc nt .84% .84% .84% .84% .84% R f r to xhibit II ± A Qu stion no. 2 and Exhibit II ± C and II ± D for supporting co mputation. Figur

I Pr s nt d mand and Supply

R f r to Tabl

II - C

It can b d duc d from th figur I that th d mand and supply is gradually incr asing in fiv y ars, y t th d mand is stills xc d th supply. H nc , r v nu is assur s through th y ar. In Milions 20

F. Mark ting Plans Occupants Our targ t mark ts ar p rsonaliz d t-shirt.

th

p opl

who ar

buying t-shirt sp cially th

Obj ct Our products and s rvic s ar diff r nt from th oth rs b caus of th di gital machin that w ar using. Custom rs may customiz th ir own d sign. Th c an buy r ady to w ar t-shirts. T-shirts may vary in color, shap , siz and d sig n according to th custom r's choic . Obj ctiv Many buy rs look for affordabl product having high quality. Th produ ct that w ar going to s ll is affordabl . W ar r nd ring s rvic with high q uality. W want to m t our custom r's satisfaction. Occasion Most of th

buy rs usually buy th

Outl sal t r.Buy 21 rs can buy r tail or whol sal

products occasionally. from us. W

ar

both r tail r and whol

Product In comp titiv situation, w ar p titors ar using a h at pr ss machin . xp nsiv mat rial that will us just to sing a digital t-shirt print r, wh r in h product. It is much ch ap r compar to

diff r nt in using th It tak s so much tim print a shirt. In our t n minut s is nough our comp titor's pric

print r. Our com to wait and mor busin ss w ar u to wait th finis .

Promotion In our op ning day w ar conducting a big discount a t n p rc nt (10% ) discount for th fisrt (1st) fifty (50) custom rs. Discounts will b off r d t o incr as and maintain th volum of custom rs who will buy in bulk. Th r ar s v ral ways of promoting our busin ss such as giving pli rs and putting tarpaul in in som plac . In oth r cas s th b st way to promot our product to our cust om r, by p rsonal s lling to inform th public that th r is such product. Prici ng Th obj ctiv of v ry busin ss is to maximiz profit. Th pric of our produ ct is bas d on what kind of mat rials w will us . W d t rmin its pric aft r d ducting th cost of raw mat rials, dir ct labor and factory ov rh ad. Th full cost of product is pr s nt d in Tabl II ± D. 22

Tabl II ± D Cost of th Dark color Dir ct Mat rials: Unit Pric Light Color Whit Factory Ov rh ad

Product Pric s

Av rag Labor

Ink 50 50 Total 158.333 190 Mark Up Round N ck Collar d 80 75 110 65 100 73.333 105 10 10 25 25 63.333% 61.29% Sourc s: Emy T soro, and Sulit.com G. Chann l of Distribution Th finish d product will b sold at th s cond (2nd) floor M ga C nt r Mall, G n. Tinio St., Cabanatuan City. W ar also acc pting t-shirt printing job. Figur II ± A Chann l of Distribution Suppli r Raw Mat rials Proc ssing Custom r H. P opl Th p opl ar committ d to th busin ss. Th y r ally know th product . It is asy to promot our product. Our p rsonn l ar motivat d and w assur o ur custom rs will b satisfi d. Our p rsonn l ar v ry approachabl . Th y hav t h knowl dg to do th job. Our d sign r is v ry artistic h knows a lot in fash ion and his d sign is diff r nt from oth rs. Th y s rv with a smil . Th y don't w ork only for mon y but to njoy th things that th y ar doing. 23

Chapt r III T chnical Asp ct Exhibits III ± A Proc ss Flow Cr ating Pr paring Placing Printing Packaging A. Production Proc ss Th xhibits abov shows th production proc ss starting f rom cr ating innovativ d signs, th n pr paring th t ± shirt(s) to b us d aft r th pr parations is th placing of th t ± shirt(s) in th print r and th n th pr inting of d signs on th t ± shirt(s) and lastly th packaging of th finish produ ct. 24

B. Equipm nt, Machin ry, Furnitur and Fixtur T-shirt Print r - is th most imp ortant quipm nt in stablishing a Digital T-shirt printing busin ss. It prints any imag s dir ctly on th t xtil with nic , bright, and sharp r sult. Th d si gns on th t-shirts ar wat rproof. With our uniqu softwar th op rations is q uit asy to op rat . It is just lik a normal inkj t print r. It is just highly ffici nt and low cost. Comput r D sktop - it is us to d sign t-shirts. It can install all th applications n d d in t-shirt printing. Th pictur s of tools and quipm nt is pr s nt d in Exhibits III ± C. Comput r Tabl ± it holds th comput r d sktop and t-shirt print r. Divid r ± it is wh r th t-shirts ar b ing stor /k pt. Cashi r's Tabl ± it is wh r th custom r is b ing nt rtain d and th fil s ar stor d. B nch ± it is wh r th custom r will sit whil waiting for th ir shi rts Chair ± it is wh r th mploy will sit whil doing th ir jobs. Tabl III-A Pric s of list d ass ts D scription Comput r D sktop T-shirt Print r Comput r Tabl Cahi r's Tabl

Divid r Chair B nch TOTAL

Quantity 1 1 1 1 1 2 1 Us ful lif

5 5 5 5 5 5 5

D pr ciations P 4,478 P 26,000 P 190 P 530 P 970 P 198 P 450 P32,816 Cost P22,390 P 130,000 P 950 P 2,650 P 4,850 P 990 P2,250 P164,080 Sourc : Blass Edward, sulit.com and M ga C nt r th 25

Mall

C. Building Th plac of th busin ss is locat d at th s cond (2nd) floor of M ga C nt r Mall, G n. Tinio St., Cabanatuan City. It is situat d in ight (8) squ ar m t r lot; M ga C nt r's manag m nt do sn't allow a l as contract. Th y only ac c pt r ntals for a maximum of on (1) y ar. M ga C nt r's manag m nt hav a policy that as long as th mall will op n d th stall must b op n d. Th y hav p nalt y of t n p sos (P10) p r minut wh n th stall will clos d but th mall is still op n d. R ntal f is tw nty two thousand p sos (P22, 000) p r month. D. Locati on Location of th busin ss can b consid r d as on of th most important thing to b don in stablishing a busin ss. Th location should b d sirabl and sho uld fit th kind of busin ss that you w r conducting. Our busin ss is locat d i n th s cond (2nd) floor of M ga C nt r Mall in th prop r city of Cabanatuan, b caus it is w ll populat d and that xactly what w n d in our busin ss. Th l ocation must asy to r ach by th custom rs. E. Capacity/Sch duling Th maximum capacity of th print r is two hundr d (200) t-shirts p r day but it can op rat as long as th y ar inks. For v ry fiv (5) ml of ink on hundr d (100) pi c s of half bond pap r d sign d t-shirts could b print d and for v ry on (1) lit r of ond.thousand (1, 000) s of hours whol abond r d sign d t-shirts cou ld b ink print Th mploy workpi t c n (10) day,pap starting from 10:00 a.m t o 8:00 p.m 26

F. Utiliti s and Oth r Op rating Cost In stablishing a busin ss th following c ost will incurr d: a. DTI P rmit ± a p rmit issu d by th gov rnm nt sp cifically DTI that all th r gist r d busin ss stablishm nt hav diff r nt nam s so that th y would hav th y own id ntity. P150 is n d d for th issuanc of th said p rmit and additional P15 with th total cos of P165 and it is r n wabl v ry fi v (5) y ars. b. Busin ss P rmits and Lic ns ± it is issu d by th gov rnm nt (ma yor's offic ) to prot ct th public int r st. It is n d d by v ry stablishm nt to op rat and njoy c rtain privil g s Tabl III - B Th Busin ss P rmits and Lic ns s F s D scriptions El ctrical p r mit Busin ss nam Badg f Busin ss p rmit P rsonn l p rmit for fiv (5) p rson s Municipal p rmit Total Sourc : Municipal Offic of Cabanatuan City Pric P20 P60 P160 P120 P900 P625 P 1, 885 c. Fir stablishm Saf ty Insp ction C rtificat ± issu BFP to assur thfir public t th nt building or occupancy hasdb bynth duly insp ct d for saf tha t y with th findings that it has substantially compli d with fir saf ty and prot ction r quir m nts. Fir saf ty insp ction quival nt to t n p rc nt (10%) of a ll f s charg d by th building official. 27

d. Tax s ± BIR coll cts tax s to v ry stablishm nt to h lp th gov rnm nt rais funds for th construction of public highways and oth r proj cts for th b n fit of th public. P500 is n d d for issuanc of BIR form. . SSS contribution and Philh alth ± as an mploy r it is our duty to giv our mp loy s th b n fits that th y n d d in cas of sickn ss, mat rnity, partial/p r man nt disability, fun ral, d ath, r tir m nt and h alth. f. El ctricity ± th pro pos d busin ss would not op rat wh n th r is no l ctricity P1, 000 monthly is nough to pay th l ctrical consumption of th busin ss. G. Production Cost Fashion nowadays includ print d t-shirt or t-shirts with slo gans which r ally in d mand. W could s v ry t ns v n thos young at h arts w aring print d or customiz d shirts anywh r . Ev ry busin ss has th ir own mat rials for th m to op rat w ll. In digital t-shirt printing busin ss th raw ma t rials that ar n d d ar as follow: a. T-shirts ± it is wh r th d sir d d sig ns ar print d, w do hav our own stocks of t-shirts that w r suppli d to us b yt. Mrs. soro. H r stall locat #48shirts Bldg.Aw Cabanatuan r Mark W Emy s Tto it that thirtyis(30) pi d c at s of r maintainCity for Sup our saf ty and sixty (60) pi c s of shirts for our r ord r point. 28

b. Ink ± v ry print d must hav inks to b abl to print what v r d signs th cus tom r wants. On (1) lit r of ink is n c ssarily maintain d for our saf ty stock s and thr (3) lit rs is th r ord r point. Th pictur s of th raw mat rials n d d is pr s nt d in Exhibit III ± D. And th sampl pictur s of finish product i s pr s nt d in Exhidits III ± E. c. Softwar ± it is th softwar that giv s ability to adjust th ink saturation, sharp n th imag , manipulat color contrast add l tt ring ff cts to your artwork and a vari ty of oth r art functions only foun d in advanc programs. Th nam of th softwar is Fast ARTIST 1.5 Imag Editing Softwar . d. Pr tr atm nt #1 - This is an odorl ss, non-toxic inkj t pr tr atm nt d sign d to b us d xclusiv ly with FastINK whit t xtil ink. It will h lp whit ink app ar bright r. Th dir ct labor cost is s v n nin thousand two hund r d (P79, 200) y arly; th oth r cost to produc th product is stimat d to b tho hundr d fifty p rc nt (250%) of dir ct labor. Th summary of Production Cost is shown in Exhibit III ± B. 29

Chapt r IV Manag m nt Asp ct A. Forms of Busin ss Organization This busin ss will b stablish d as a singl or sol propri torship as th most conv ni nt and suitabl typ of form of s t u p. Th own rship is v st d into on p rson. Th own r njoys th full fr dom of op ration. H has th pow r and full control of th nt rpris . H can do what h want in th op ration of th busin ss. Th own r has th authority to giv wh at b n fits and profits that accru from th busin ss. H can s t his own polici s and proc dur and mak s his own d cision without asking and consulting anyon . Advantag s Th stablish d busin ss is v ry asy to organiz it only n d at l ast on comput r and on digital print r to op rat th busin ss. It only n ds at l ast two (2) mploy s. It is th first in Cabanatuan City to us a digital print r. T n (10) minut s is th maximum tim to print what v r d signs th cus tom rs d sir d. It provid fast and high quality s rvic s at an affordabl pric s. Th custom rs would not wait for a w ks or days for th finish product. Disa dvantag s Th disadvantag of th busin ss is th thr at that th comp titors ma y opis rations ss. Its is subj ct toand taxisr limit gardl ss o f ruin wh thth r it drawn of or th not.busin Th busin ss incom has limit d capital d on ly to th ar as in which th propri tor has xp rtis . 30

B. Duti s and R sponsibiliti s Manag r/ Own r  H must b ffici nt l ad r in ord r to win work rs trust and full coop ration.  H must b fair in tr ating his wo rk r.  H must b contract and n gotiat of th mark t.  H must b r sponsibl in sup rvising his staff and motivat th m to achi v th company/ busin ss obj ct iv .  H must b r sponsibl for th r cords, fil s, and k p all th book of acc ount. Print r/D sign r  Must b knowl dg to m asur d sign.  Must b awar to th lat st fashion.  Must know how to us comput r.  Should b r sponsibl in h lping oth rs in th ir vacant tim .  Th working hours is t n (10) hours a day. S v n d ays a w k. R c iv r/Cashi r  Must contact and n gotiat with th custom r.  Must know to r c iv and r l as s stocks.  Must b r sponsibl for th r cords, fil s, and k p all th book of accounts.  Must know how to us comput r. 31

Th working hours is t n (10) hours a day. S v n days a w k.  Should b r sponsi bl in h lping oth rs in th ir vacant tim . Exhibits IV - A ORGANIZATIONAL CHART 

Manag r/own r Print r/D sign r C. P rsonn l R quir m nt Cashi r A work r is usually assign d to p rform tasks, duti s and r sponsibiliti s which may diff r from thos of oth r job. In this kind of busin ss ar th numb rs of work rs ar composing by th following: Tabl IV ± A P rsonn l of th Busin ss Position Manag r/own r Print r/d sign r R c iv r/cashi r Total Numb r of work rs 1 1 1 3 work rs D. Qualification Standards a) Print r/D sign r  18-25 y ars of ag 32

Coll g l v l  Comput r lit rat / knows how to us , d signs and ncod  With pl as ing p rsonality  Must hav good moral charact r  Must b industrious and hardworki ng 

b) R c iv r/Cashi r  18 ± 25 y ars of ag  Coll g l v l  Hav a knowl dg on how to r cord a transaction  With pl asing p rsonality  Must b trust  Must hav good moral charact r  Must b industrious and hardworkin E. Comp nsation Packag ªIn any oth r busin ss op ratio n comp nsation is primarily giv n a consid ration, Th own r wants profit whil work rs wants a high r wag and short r tim for work. Salary and b n fits inspi r th work rs in p rforming th ir job w ll. Th salary of most work rs is bas d on mor or l ss th sam salary paid in th community for th sam typ of work . Th mploy s must b paid in accordanc with th ir knowl dg in th busin ss and also with r gards to th ir fforts in works.º Th own r/manag r will r c iv n t profit bas d upon th sal s aft r d ducting all th xp ns had b n us d. Th cashi r and th d sign r/print r 33

will r c iv th ir salary as a monthly t rms basis. Th computation and th summ ary of wag s and comp nsation of th mploy is pr s nt d in Exhibit IVB. Tabl IV ± B Comp nsation Packag Position Cashi r D sign r No. Of p rson Rat Total 1 1 2 P200 P220 D ductions SSS Philh alt P200 P75 P233.30 P75 Monthly P5, 725 P6, 291.70 Annually P68, 700 P75, 500.40 P 144, 200.40 Tabl IV ± C Proj ct d Tim Tabl Gantt Chart Activiti s acquiring th r quir d ca pital applying for loan busin ss r gistration canvassing of machin and quipm n t purchasing and d liv ry of quipm nt r cruiting and hiring of work rs Training of th mploy purchasing, canvassing and d liv ry of raw mat rials W ks 1 2 3 4 5 6 7 8 34

Chapt r V Financial Asp ct This potion d t rmin s th profitability l v l of th proj ct which is th g n rally d fin d as th r lationship of th of th n t in com aft r tax s to th total inv stm nt. It is larg ly bas d on th availabl o pportunity cost in a particular p riod of tim and plac . It also involv s thoro ugh cov rag of all th mon tary information of th busin ss. It cov rs d tail d information on th total proj ct cost, initial capital, sourc s of financing, f inancial stat m nts and th financial analysis. Th financial h alth of th busi n ss is ass ss d in th financial stat m nts and analysis showing th thr impo rtant accounting stat m nts such as incom , cash flow and balanc sh ts. P rtin nt financial ratios ar also illustrat d d scribing th ov r all busin ss liqui dity, d gr of ind bt dn ss and profitability. Additional information ar also provid d such as br ak v n outputs, sal s and pric s amount of sal s r quir d t o arn a c rtain amount of profit and th cash payback p riod. 35

a. Major Assumption: Th following ar th g n ral major assumption that th stu dy mak s: a. Sal s - ar th r v nu s by th busin ss. Sal s proj ction is how m uch mon y will b inv st d into th busin ss, and th pot ntial mark ts. Th sal s of th busin ss ar bas d on th d mand and supply discuss d in Chapt r II Ma rk ting Asp ct. Th busin ss is assum d that on th av rag tw nty on (21) cust om rs p r day for th first y ar of op rations. Th r v nu proj ction is pr s n t d in Exhibit V ± A. b. Cost of Goods Sold/Cost of Sal s-is th cost of inv ntory that th busin ss has sold to th custom rs. Th cost of sal s is discuss d in Chapt r III T chnical Asp ct. It is pr s nt d in Exhibit V ± B. c. Salary, Wag s a nd B n fits ± th salari s that th mploy r c iv d is discuss d in Chapt r IV M anag m nt Asp ct. Th supporting computation ar pr s nt d in Exhibit IV ± A. d. R nt-th r ntal cost of th busin ss is two hundr d sixty four p sos (P264, 000) p r y ar. It is discuss d in Chapt r III T chnical Asp ct. . Adv rtising- th c ost for th adv rtis m nt of th busin ss is fiv thousand (P5, 000) and it is i ncr as d by t n p rc nt (10%) for th succ ding y ars. It is discuss d in Chapt r II Mark ting Asp ct. f. Suppli s ± it is th additional mat rials that ar n d d by th 36

busin ss. It is discuss d in Chapt r III T chnical Asp ct.

g. Utiliti s ± ar th l ctricity consum d by th busin ss. Th stimat d l ctri c consumption of th busin ss is on thousand p sos (P1, 000) monthly; tw lv th ousand p sos p r y ar and it is incr as d by t n p rc nt (10%) annually. It is d iscuss d in Chapt r III T chnical Asp ct. h. SSS and Philh alth Contribution ± is th only b n fit r c iv d by th mploy s. Th busin ss assum d that it is incl ud d in Factory Ov rh ad. It is discuss d in Chapt r IV Manag m nt Asp ct. Th s ch dul of SSS and Philh alth Contribution is pr s nt d in th App ndix. D pr ci ation ± th company stimat d that th us ful lif of tools, quipm nt and furnitu r and fixtur s is fiv y ars. Th total d pr ciation of th busin ss is thirty two thousand ight hundr d sixt n p sos (P32, 816). Th supporting computation is pr s nt d in Tabl III± A. j. P rmits, Lic ns s and Tax s ± th p rmits, lic ns s and tax s that is paid by th busin ss is pr s nt d and discuss d in Chapt r II I T chnical Asp ct. i. b. quir 1. Princurr -Op rating a. Busin P rmits, ns discu s a nd Capital Tax s ± R this ismthnt cost d forExp th ns l s gality of thss busin ss.Lic It is ss d in Chapt r III T chnical Asp ct. Th total cost incurr d by th busin ss is nin thousand on hundr d thirty fiv p sos (P9, 135). 37

b. Adv rtising ± is th cost incurr d for th popularity of th busin ss. It is in curr d by th busin ss for th m to know th mark t. It is discuss d in Chapt r I I Mark ting Asp ct. Th pr -op rating adv rtising cost is fiv thousand p sos (P 5, 000) and incr as d by t n p rc nt (10%) for th succ ding y ars. c. El ctric ity - th stimat d l ctric consumption of th busin ss is on thousand p sos ( P1, 000) and it is incr as d by t n p rc nt (10%) annually. d. Salari s ±salari s and wag s of th mploy s ar divid d in two s gm nts. Th dir ct labor and th indir ct labor. Th total cost of salari s in th pr -op rating p riod is tw lv thousand six hundr d p sos (P12, 600) p r month. . R ntal Cost ± th pr -op rat ing p riod of r ntal cost incurr d by th busin ss is tw nty two thousand p sos (P22, 000) and forty four thousand p sos (P44, 000) for th r ntal d posits, r s p ctiv ly. f. Offic Suppli s ± th offic suppli s pr -op rating p riod is thr thousand p sos (P3, 000). g. Raw Mat rials ± th busin ss hav a total of th tw n ty thousand s v n hundr d fifty p sos (P20, 750). 2. Op rating Exp ns a. Raw Ma t rials ± it is th primary mat rials that us to produc d th product. Th total purchas s ar pr s nt d in th Exhibit V ± B. 38

b. Adv rtising ± is th cost that incurr d for th promotion of th busin ss. Th adv rtising cost is fiv thousand p sos (P5, 000) and incr as d by t n p rc nt ( 10%) for th succ ding y ars. c. El ctricity - th l ctric consumption of th busin ss is tw lv thousand p sos (P12, 000) p r y ar and it is incr as d by t n p rc nt (10%) for th n xt y ars. d. Salari s ± th gross salari s that th mplo y r c iv is tw lv thousand p sos (P12, 000) for indir ct labor. It is incr a s d by t n p rc nt (10%) for th n xt y ars. . P rmits and lic ns s ± th p rmits and lic ns s is r n wabl y arly. Th total cost that incurr d for th p rmits and lic ns s is nin thousand on hundr d thirty fiv p sos (P9, 135). f. R ntal Cost - th r ntal cost for th y ar is two hundr d sixty four thousand p sos (P 264, 000). g. Offic Suppli s ± th busin ss incurr d for th suppli s is t n thou sand p sos (P10, 000) for th first y ar of th op rations and incr as d by t n p rc nt (10%) for th succ ding y ars. h. Int r st Exp ns ± th busin ss has fif ty thousand p sos (P50, 000) loans payabl and it has tw lv p rc nt (12%) int r st p r y ar. Th busin ss has six thousand p sos (6, 000) int r st paym nt. 39

3. Capital Exp nditur /Fix d Ass ts Th following ar th fix d ass ts n d d by th busin ss. a. Tools and Equipm nt ± it is th quipm nt that n d d by th bus in ss. It is discuss d in Chapt r V ± A. And th pictur s of tools and quipm nt i s pr s nt d in Exhibit III ± C. Tabl V ± A Tools and Equipm nt DESCRIPTION COMPUTER T-SHIRT PRINTER TOTAL QUANTITY 1 1 UNIT SET UNIT UNIT COST P22, 390 P130, 000 T OTAL COST P22, 390 P130,000 P152, 390 b. Furnitur and Fixtur ± th furnitur and fixtur s that ar n d d that by th busin ss ar discuss d in Chapt r III T chnical Asp ct. Th summary of Furnitur and Fixtur is pr s nt d in Tabl V ± B. Tabl V - B Furnitur and Fixtur s QUANT ITY UNIT 1 PIECE 1 PIECE 1 PIECE 2 PIECE 1 PIECE DESCRIPTION COMPUTER TABLE CASHIER'S TABLE COST UNIT TOTAL COST DIVIDER CHAIR BENCH TOTAL P950 P2, 650 P4, 850 P450 P2, 250 P950 P2, 650 P4, 850 P990 P2, 250 P11, 690 c. Sourc s of Financing Th busin ss is financ d by Mr. Rob rto U, Cariazo Jr. T h busin ss has loan payabl of fifty thousand p sos (P50, 000) to Atty. Villar with tw lv p rc nt (12%) int r st p r y ar. It is payabl aft r on (1) y ar. 40

d. Pr paration of Financial Stat m nts 1. Incom Stat m nt ± is th formal stat m nt showing th p rformanc of th busin ss for a y ar. It is summariz s th sal , cost of sal s, and xp ns s incurr d for a y ar. Th proj ct d Incom Stat m n t is pr s nt d in Exhibit V- C. 2. Cash Flow Stat m nt ± it provid s information about th cash r c ipts and cash paym nts of a busin ss for a y ar. It is a formal stat m nt that classifi s cash r c ipts (Cash Inflow) and cash paym nts (Cash Outflow) into op rating, inv stm nts and financing activiti s. Th Proj ct d Cash flow is pr s nt d in Exhibit V ± D. 3. Balanc Sh ts ± is a stat m nt that shows th financial position or condition of th busin ss by listing th ass ts, liabiliti s and own r quity. Th Proj ct d Balanc Sh ts is pr s nt d in Exhibit V- E. . Financial Analysis Th

following is th

m thod that us s to analyz

th

finan

cial m nt. for th Financial is s nt it V stat ± F. a. N tThPr computation s nt Valu (NPV )- this r f rsAnalysis to th xc pr ss of thd in pr Exhib s nt va lu of cash r turns discount d at a chos n cut± off rat bovv r th amount of th inv stm nt. 41

b. Int rnal Rat R turn (IRR) ± this r f rs to th rat of r turn that a long t rm inv stm nts. c. Profitability Ind x (B n fits/Cost Ratio/Pr s nt valu Ind x) ± t his r f rs to th ratio of th pr s nt valu of cash r turns discount d at a cho s n cutoff rat to th inv stm nt r quir m nt. d. Curr nt Ratio ± indicat s th ab ility to pay curr nt obligations. . N t Fix d Ass t Turnov r Ratio ± is a m asur of th proj cts utilization of fix d ass ts. f. Equity Turnov r Ratio ± m asur s how ff ctiv ly would th own r's n t worth will b us d in th proj ct. g. Gross Profit Margin ± quals p rc nt of sal s availabl aft r d ducting cost of good sol d. This p rc ntag is availabl to cov r s lling, g n ral and administrativ cos ts and also arn a profit. It indicat s th basic cost structur of th proj ct and its cost priz position. h. Op rating Profit Margin ± r lat s th proj cts pro fit to its n t sal s. Th variability of this ratio is a prim indicator of th busin ss risk od th proj ct . A high r ratio impli s that th company has a hig h r l v l of fix d costs and th r for infl xibl . i. Payback P riod ± this r f rs to th l ngth of p riod or numb rs of y ars it would tak to r cov r an inv stm nt. j. Br ak Ev n ± it is th l v l of activity (production and sal s) at which t honcompany would abl dtoonavoid a loss. Th thousand twobhundr (1, 201) units 42

br ak

v n point of th

company is

Chapt r VI Socio ± Economic D sirability Socio ± Economic D sirability ± th propos d proj ct is hoping to b b n ficial to all for th coming y ars. Th busin ss wil l continuously achi v its obj ctiv . Th study will off r ntr pr n urs an atta ch d ar a of inv stm nt: A. Custom rs ± th most important factor to b consid r d in s rvic output will b th custom r. Th company must always think about th n w tr nds of d sign which rid s for th satisfaction of th ir n ds, wants and d sir s of th custom r B. Employ s ± th busin ss would r quir th acquisition of manpow r. And by this m ans th un mploym nt rat would b l ss n and would also propagat th g n ration of incom , which would positiv ly influ nc th im prov m nt of th standard of living of mploy d individuals family. C. Cr ditors /Suppli r ± th stablishm nt of this kind of busin ss will promot th growth of oth r busin ss firms which will provid th raw mat rials and s rvic s or which will furth r proc ss its products. D. Own rs ± in stablishing this kind of busin ss th b n fits of th own r ar th y arn incom in this busin ss th b n fits of th own r ar th y arn incom in a d c nt way and th y giv opportunity for a b tt r lif to oth r p opl . 43

E. Community/Soci ty/Church ± in th pr s nc of conomic crisis, p opl think how th y arn mon y to minimiz th ir daily xp ns s. In stablishing this kind of busin ss h r in Cabanatuan City would h lp th p opl to hav a d c nt job that would giv th m a b tt r opportunity to arn a living for th ir family. Th st ablishm nt of this proj ct would b n fit th consuming public through th low ri ng of r tail pric s. F. Gov rnm nt ± this proj ct will b n fit local and national gov rnm nt b caus it h lps in g n rating incom through tax s. It will contribu t for th improv m nt of Philippin conomy. 44

Chapt r 7 Findings, Conclusion, and R comm ndation A. Findings A Digital t-shirt printing busin ss was stablish d to xp dit th pr s nt way of printing t-shirts nowadays. Th pr s nt way of printing or manual m thod of T-shirt printing is m ssy and it took long p riod days to do th fini sh product. Th busin ss will provid a high-sp d printing and mor pr s ntabl , affordabl and n at t-shirt for its custom rs. Th Busin ss can provid und ni abl fast s rvic . Th sp d in printing t-shirts will b don in mor conv ni n t way. Th busin ss will provid gr at as for that t-shirt lov rs; th y will b b n fit d by th busin ss ability to print t-shirts fast r. Th propos d busin ss is conv ni nt and asy to op rat b caus it only n d a d sign r and cashi r to manag th busin ss. How v r th p rson n ds to hav knowl dg on using co mput r in ord r to cr at d signs and also th cashi r n ds to b at l ast Coll g l v l. 45

B. Conclusions: Bas d on th findings of th study th following conclusions ar drawn: 1. Th propos d busin ss would b th first not just in Cabanatuan City but in Nu va Ecija to us digital t-shirt printing customiz d d signs on T-shirt s. 2. T n (10) minut s is th maximum tim to wait for th finish product. 3. It can provid fast, asy, affordabl and high quality s rvic s for its custom rs. 4. Th propos d busin ss could assur its custom r that th r will b no stain and m ss on print d t-shirts. This is on gr at advantag of th digital t-shirt printing busin ss ov r its comp titors. C. R comm ndations Bas d on th r s arc h study conduct d, th r s arch rs r comm nd th usag of digital t-shirt print r for th printing of t-shirts. Th r s arch rs also r comm nds that wh n th op rating th busin ss, th mploy s (for layout) must hav tak n comput r-r lat d trainings or must b knowl dg abl in using comput rs such as hands-on op rati on, ncoding layouts/d signing, th cashi r must at l ast coll g l v l. Th bus in ss n ds at l ast on (1) comput r to b us d by th mploy s. As in any oth r studi s in its initial application, th propos d busin ss is still far from p rf ct and can still b improv d in tim . It is limit d to digital printing busi n ss s. For furth r r s arch th 46

propos d busin ss b appli d and op rat d.

EXHIBIT I-B Araullo Univ rsity PHINMA Education N twork Coll g of Manag m nt an d Accountancy SURVEY QUESTIONNAIRE D ar R spond nt: Th r s arch rs, stud nts of Araullo Univ rsity- Phinma Education N twork, aim to d t rmin th f asibility of stablishing a Digital T-shirt Printing Busin ss in M ga C nt r th Mall, G n . Tinio,Cabanatuan City, Nu va Ecija as a r quir m nt for th d gr Bach lor of Sci nc in Busin ss Administration Major in Financial Accounting. Pl as b ass ur d that th information you will provid for th r s arch rs will b tr at d w ith strict confid ntiality. Th id ntity of th r spond nts will in no way b di sclos d. Your participation and kind coop ration will b of gr at h lp in th co mpl tion of this study. Thank you for sharing your tim and ffort. Th R s arch rs R spond nt's Profil Nam : Addr ss: Occupation: Instruction: Pl as ncircl y our answ r. 1. Do you buy T-shirts? a.) Y s b.) No 2. Which T-shirts do you pr f r to w ar? a.) Round n ck b.) Collar d 3. What color do you lik most wh n you'r w aring t-shirts? a.) Is it plain? or (Pl as sp cify th color) b.) Multi colo r d d sign t-shirts 4. Would you pr f r to w ar a.) Imitat d d signs b.) P rsona liz d d signs (Optional) Ag : S x: Incom l v l: 47

5. Which would you pr f r? a.) Cotton b.) Rayon c.) Silk d.) Lin n

.) Wool f.) Ac tat

6. Is 10-minut printing nough for you? a.) Y s b.) No (Sp cify th tim you pr f r) 7. What is th affordabl pric for you? (Round n ck) (Collar d T-shirts) a.) 270 b.) 310 c.) 250 8. Wh n do you usually buy T-shirts? a.) Monthly b.) W kly c.) During occasions d.) Oth rs (Sp cify) 9. Wh r do you usually buy T-shir ts? a.) Stall in mall b.) Mark t stall c.) Catalogu 10. What is your pr f r nc in choosing T-shirts? a.) Quality b.) Pric c.) Brand d.) Styl /d sign .) Acco rding to your mood 11. How do you usually buy t-shirts? a.) R tail b.) Whol sal 12. What kind of p rsonality do you b long? a.) Funk/ mo/rock r b.) Sport c.) S impl d.) Fashionista .) Girly f.) Oth r (sp cify) a.) 310 b.) 300 c.) 330 48

EXHIBIT I-C LETTER OF REQUEST FOR AN INTERVIEW Sir/Madam: As a partial r quir m nt of th cours , Bach lor of Sci nc in Busin ss Administration Major in Financial Accounting, w ar conducting a Proj ct F a sibilty Study. Th und rsign d ar planning to study on how to stablish a Digit al T- Shirt Printing Busin ss in M ga C nt r th Mall Gwn. Tinio, Cabanatuan Cit y. In this r gard, may w r qu st your offic to grant us an int rvi w and giv som information about th study. W assur you that all data w gath r d will b tr at d as confid ntial. Thank you. R sp ctfully Yours, Maria Yv tt M. Badill a Rob rto Cariazo Jr. Ria Z ll D Guzman Kyl n Maranan Endors d by: Jos phin C. Evang lista, PhD Instructor, Proj ct F asibility Study Not d by: Em rita Mod sto, CPA, CIA, MBA D an, Coll g of Manag m nt and Accountancy Kristin 49

Kay Vald z

Exhibits I ± D Structur d Int rvi w Guid Qu stions 1. What mad you d cid to put up a t- shirts printing? 2. Wh r is your busin ss sit ? 3. How long do you sp nd in this kind of busin ss? 4. How many t ± shirts do you produc in on (1) y ar ? 5. What ar your mark ting strat gi s to xpand your mark t? 6. Wh r do you a vail your goods? 7. What ar th agr m nts do you hav in your suppli r? 8. Wha t ar th mat rials do you n d d in th printing th t ± shirts? 9. Do you us Di gital t ± shirt print r wh n you print th t- shirts? 10. Ar you having an mploy /s? 11. How ar th r monthly salari s? 50

Exhibits I ± E R sults of Structur d Int rvi w Qu stions: 1. What mad you d cid to put Kuya Wilfr d 1. It is th only jobs I alr ady know to do. 2. P rf ct loca tions for th busin ss 3. Fift n (15) y ars 4. Tw nty fiv to thirty thousand t ± shirts. 5. I hav my own suppli r and I transact dir ctly to all schools h r i n Cababatuan. 6. I avail t ±shirts to Mrs. Emy t soro. 7. Sh I in ± charg for th t ± shirts and only th labor is in charg to m . 8. T ± shirts, silk scr n, paint and comput r for th d signs 9. No, silk scr n only 10. No, 11. Nothing up a t- shirts printing? 2. 3. Wh r d in this

is your busin ss sit ? How long you do sp n

kind of busin ss? 4. How many t ± shirts do you produc in on

(1) y ar? 5. What ar

strat gi s to

xpand your mark t? 6. Wh r

goods? 7. What ar you hav n

th

agr

printing th

print r wh n you print th

51

do you avail your

m nts do

in your suppli r? 8. What ar

d d in th

mploy

your mark ting

th

mat rials do you

t ± shirts? 9. Do you us t- shirts? 10. Ar

/s? 11. How is th r

a monthly salary?

Digital t ± shirt

you having an

Structur d Int rvi w Guid Qu stions 1. What ar th r quir m nts in r nting th spac ? Is th r a contract? 2. What is th agr m nt for thos who wants to r n t th spac ? 3. Ar allowing th fiv (5) y ars l as agr m nt? If y s, how is th paym nt go s? Monthly, s mi ± annually, annually? 4. Is th r ntal paym nt not fix d? 5. What siz is th small st spac availabl for r nt? How much? And wha t floor? 6. This past fiv (5) y ars, how much is th r ntal for th spac ? 7. A r you th on who sp nd mon y for th r novation of th spac ? Or th on who r nt it? 8. What is th agr m nt for th paym nt of l ctric bill? 9. Can I ask th total numb rs of custom rs who can in th plac at th r gular days? In hol idays? 10. Ar advanc paym nt/ d posits n d d? How many months? 52

R sults of Structur d Int rvi w Qu stionnair s 1. What ar th r quir m nts in r nting th spac ? Is th r a contract? 2. What is th agr m nt for thos who wa nts to r nt th spac ? 3. Ar allowing th fiv (5) y ars l as agr m nt? If y s, how is th paym nt go s? Monthly, s mi ± annually, annually? 4. Is th r ntal p aym nt not fix d? 5. What siz is th small st spac availabl for r nt? How muc h? And what floor? 6. This past fiv (5) y ars, how much is th r ntal for th s pac ? 7. Ar you th on who sp nd mon y for th r novation of th spac ? Or th on who r nt it? 8. What is th agr m nt for th paym nt of l ctric bill? 9. Can I ask th total numb rs of custom rs who can in th plac at th r gular da ys? In holidays? 10. Ar advanc paym nt/ 9. Estimat d tw nty fiv thousand (25, 000) for r gular days and forty thousand (40,000) for holidays. 10. Y s, thr m onths advanc r fundabl 8. R nd r d 7. You will provid th quipm nt; w will provid th spac only. 5. Four sq. M., 2nd floor, fift n thousand p sos approx imat ly. 6. Sam 4. Fix r ntal 3. No 2. Six months to on y ar. Analiza Go 1. L tt r of int rvi w d, l ctrical load, pictur of quipm nt. Y s d posits n 53

d d? How many months?

Exhibit II ± A Surv y R sults No. of Copi s Ag B low 20 21 ± 30 31 abov S x : Mal F mal 1. Do you buy t- shirts? A. Y s B. No 2. Which t-shirts do you pr f r to w ar? a. Round N ck b. Collar d 3. What color do you lik most wh n you'r w arin g t-shirts? A. Plain B. Multi color d 4. Would you pr f r to w ar? A. Imitat d d signs B. P rsonaliz d d signs 5. Which would you pr f r? A. Cotton B. Rayon C. Silk D. Lin n E. Wool F. Ac tat 6. What is th affordabl pric for you? (Round N ck) A. 270 155 128 112 395 280 115 395 375 20 395 209 186 395 P rc ntag

(%) 39.24 32.24 28.35 100 71 29 100 95 5 100 53 47 100

241 154 395 122 273 395 363 4 4 16 4 4 395 61 39 100 31 69 100 92 1 1 4 1 1 100 71 16 122 395 18 4 31 100 54

B. 310 C. 250 ( Collar d) A. 310 B. 300 C. 330 7. Is 10 ± minut printing nough f or you? A. Y s B. No 8. Wh n do you usually buy t- shirts? A. Monthly B. W kly C. During occasions D. Oth r 9. Wh r do you usually buy T-shirts? A. Stall in m all B. Mark t stall C. Catalogu 10. What is you pr f r nc in choosing t-shirts ? A. Quality B. Pric C. Brand D. Styl E. According to your mood 11. How do you usually buy t-shirts? A. R tail B. Whol sal 12. What kind of p rsonality do yo u b long? A. Funk/ mo/rock r B. Sport C. Simpl D. Fashionista 87 51 48 395 288 107 395 130 40 194 31 395 320 48 27 395 146 24 36 118 71 395 31 9 79 395 31 40 233 43 40 8 395 22 13 12 100 73 27 100 33 10 49 8 100 81 12 7 100 37 6 9 30 18 100 80 20 100 8 1 0 59 11 10 2 100 55

E. Girly F. Oth r Exhibit II ± B Computation of Proj ct d Population 56

Y ar 1990 1995 2000 2007 Total X -2 -1 1 2 0 Y 404, 316 460, 859 586, 940 626, 023 2, 078, 138 X² 4 1 1 4 10 XY -808, 632 -460, 859 586, 940 1, 252, 046 569, 495 b = åXY - åXåY n åX² - (åX)² n = 569, 495 ± (0)(2, 078, 138) 4 10 - (0)² 4 = 569, 495 ± 0 10 49.50 Y = a+bX 2010 = 519, 534.50 + 56, 949.50 (3) = 690, 383 2011 = 519, 534.50 + 56, 949.50 (5) = 804, 282 2012 = 519, 534.50 + 56, 949.50 (7) = 918, 181 2013 = 519, 534.50 + 56, 949.50 (9) = 1, 032, 080 2014 = 519, 534.50 + 56, 949.50 (1 1) = 1, 145, 979 a = åY - båX n = 2, 078, 138 ± (56, 949.50)(0) 4 = 2, 078, 138 4 = 519, 534.50 Exhibit II ± C 57

D mand Analysis Formula: Proj ct d population x % of willingn ss x % of us rs x no. of fr qu ncy Wh r : Proj ct d Population % of willingn ss = R spond nt backg round, Qu stion no. 1, Exhibit II ± A % of us rs = R spond nt background, Qu stion no. 4, Exhibit II ± A No. of fr qu ncy = onc or twic 2010 Proj ct d Population 690,383 % of willingn ss .95 .31 2011 Proj ct d Population 804, 282 % of willing n ss .95 .31 2012 Proj ct d Population 918,181 % of willingn ss .95 .31 2 540, 808.61 1, 142, 676.26 % of Us rs .69 No. of Total Fr qu ncy 452, 546.06 1 2 406, 635.59 Total 859, 181.65 .97 833, 406 % of Us rs .69 No. of Fr qu ncy 1 2 Total 527, 206.85 473, 722.10 1, 000, 928.95 Total .97 970, 901 % of Us rs .69 No. of Fr qu ncy 1 Total 601, 867.65 Total .97 1, 108, 396 2013 58

Proj ct d Population 1, 032, 081 % of willingn ss .95 % of Us rs .69 .31 No. of Fr qu ncy 1 2 Total 676, 529.10 607, 895.71 1, 284, 424.81 Total .97 1, 245, 892 2014 Proj ct d Population 1, 145, 979 % of willingn ss .95 .31 2 674, 981.63 1, 426, 170.83 % of Us rs .69 No. of Fr qu ncy 1 Total 751, 183.23 Total .97 1, 383, 386 Exhibit II ± D Supply Analysis 59

Formula: Proj ct d population x % of alt rnativ s x % of us rs x no. of fr qu nc y Wh r : Proj ct d population % of us rs = R spond nt background, Qu stion no. 1 , Exhibit II ± A % of Alt rnativ s = R spond nt background, Qu stion no. 9, Exhibi t II ± A No. of fr qu ncy = onc , twic or thric 2010 Proj ct d Population 690, 3 83 % of us rs .95 % of Alt rnativ s .81 .12 .07 No. of Fr qu ncy 1 2 3 Total 531 , 250 157, 407 137, 731 826, 388 2011 Proj ct d Population 804, 282 % of us rs .95 % of Alt rnativ s .81 .12 .07 No. of Fr qu ncy 1 2 3 Total 618, 895 183, 376 160, 455 962, 726 2012 Proj ct d Population 918, 181 % of us rs .95 % of Alt rnativ s .81 .12 .07 No. of Fr qu ncy 1 2 3 Total 706, 540 209, 346 183, 177 1, 099, 063 2013 60

Proj ct d Population 1, 032, 080 % of us rs .95 % of Alt rnativ s .81 .12 .07 No. of Fr qu ncy 1 2 3 Total 794, 186 235, 314 205, 900 1, 235, 400 2014 Proj ct d Population 1, 145, 979 % of us rs .95 % of Alt rnativ s .81 .12 .07 No. of Fr qu ncy 1 2 3 Total 881, 831 261, 283 228, 623 1, 371, 737

Exhibit III ± B Production Cost 61

Dir ct Mat rials: Round n ck T-shirts: D scriptions Dark color Light color Whit TOTAL Collar d T-shirts: D scriptions Collor d Whit TOTAL Ink D scriptions Ink TOTAL Dir ct Labor: P79, 200 p r y ar (R f r To Chapt r IV for supporting Compu tation) Quantity 6.667 Unit Litr s Unit Cost P 1,500 Total P10,000 P10,000 Quant ity 25 25 Unit Pi c s Pi c s Unit Cost P 110 P 100 Total P 2,750 P 2,500 P 5,250 Quantity 25 25 25 Unit Pi c s Pi c s Pi c s Unit Cost P 80 P 75 P 65 Total P 2, 000 P 1,875 P 1,625 P5,500 Factory Ov rh ad: Dir ct Labor P79, 200 X 250% Factory Ov r H ad P198, 000 Exhibit III ± C Pictur s of Tools and Equipm nts 62

T-shirt Print r Comput r Exhibit III ± D Pictur s of Raw Mat rials 63

T-shirt Inks Softwar Exhibit III ± E Pictur s of Finish d Products 64

65

pICpTURES Exhibit IV- B Comp nsation Packag

66

Position Cashi r D sign r No. Of p rson Rat Total 1 1 2 P200 P220 D ductions SSS Philh alt P200 P75 P233.30 P75 Monthly P5, 725 P6, 291.70 Annually P68, 700 P75, 500.40 P 144, 200.40 Computation: Cashi r P200 p r day *30 Days P6, 000 p r month -P275 B n fits P5, 725 n t monthly salary *12 P68, 700 n t y arly salary D sign r/print r P220 p r day *30 days P6, 600 -P308.30B n fits P6, 291.70 n t monthly salary *12 P75, 500 .40 n t y arly salary

Exhibits V ± A R v nu

Proj ctions 67

Round N ck (2010- 2014) Custom r p r Day Y ar 2010 2011 2012 2013 2014 Days 7 7 7 7 7 W

kly 4 4 4 4 4

Monthly 12 12 12 12 12 12 14 16 18 20 Total no. of units sold p r Y ar 4, 302 4, 704 5, 376 6, 048 6, 720 Pric 250 250 250 250 250 Total r v nu 00

p r Y ar 1, 008, 000 1, 176, 000 1, 344, 000 1, 512, 000 1, 680, 0

M thod of Proj ction: Statistical Straight - lin Collar d T ± shirts (2010 ± 2014) Custom r p r Day Y ar 2010 2011 2012 2013 2014 Days 7 7 7 7 7 W

kly 4 4 4 4 4

Monthly 9 10 12 13 15 12 12 12 12 12 Total no. of units sold p r Y ar 3, 024 3, 360 4, 032 4, 368 5, 040 Pric 310 310 310 310 310 Total r v nu

p r Y ar 937, 440 1, 041, 600 1, 249, 920 1, 354, 080 1, 562, 400

M thod of Proj ction: Statistical Straight - lin Total R v nu s (2010 ± 2014) Y ar 2010 2011 2012 2013 2014 Total P1, 945, 440 P2, 217, 600 P2, 593, 920 P2, 866, 080 P3, 242, 400 68

Exhibits V ± B Watta Shirts Proj ct d Cost of Sal s For th ar 1 Dir ct Mat rials: Dir ct mat rials b g

fiv

(5) ± Y ar P riod Y

Y ar 2 35, 666 P699, 541.76 P735, 207.76 (P38, 340.95) P696, 866.81 P87, 120 P20 7,144 P1, 001, 786.81 P23, 433 P1, 025, 219.81 (P25, 916.30) 988,647.51 Y ar 3 P38, 340.95 P819, 381.54 P857, 722.49 (P41, 015.90) P816, 706.59 P95, 832 P221,714 P1, 178, 034.89 P25, 916.30 P1, 149, 635.29 (P28, 399.60) 1,131,769.29 Y ar 4 P41, 015.90 P903, 941.31 P944, 957.21 (43, 690.85) P901, 266.36 P105, 415 .20 P251,334 P1, 270, 219.56 P28, 399.60 P1, 298, 619.16 (P30, 882.90) 1,255,532.26 YP115, ar 5 P43, 690.85 P1, 023,P1,781.09 P1, 067, 471.94 (P46, P1, 021, 106.14 956.72 P276,763.80 426, 954.66 P30, 882.90 P1,365.80) 457, 837.56 (P33, 366. 20) 1,411,343.36 Add: Purchas s Total Mat rials Availabl

L ss: Dir ct Mat rials End

Dir ct mat rials us d Dir ct Labor Appli d FOH Total manufacturing cost Add: finish d goods b g TGAS L ss finish d goods

nd

P20, 750 P629, 981.96 P650, 731.96 (P35, 666) P615, 065.96 P79, 200 P190,066 P89 2, 265.96 P892, 265.96 (P23, 433) 860,898.96 Cost of sal s Computation for Factory Ov rh ad Y ar 1 3,699.6 6,956.40 33,100 15,500 32,400 97 ,400 P1510 Y ar 2 3,849.60 7,106.40 35,247 16,500 35,640 107,140 P1661 Y ar 3 4, 250.40 7,953.60 32,474.90 181,150 39,204 117,854 P1827.10 Y ar 4 4,599.60 8,528. 40 43,467.39 19,965 423,124.40 129,639.40 2009.81 Y ar 5 5,150.40 9,525.60 47,87 5.33 21,961.50 47,436.84 142,603.34 2210.79 Employ

fring

B n fits

Employ r Contribution Packaging Transportation Cost Training Cost Training Allowanc al P190,066 P207,144 P221,714 P251,334 P276,763.80

Oth r Exp ns

Tot

69

Exhibits V ± C Watta Shirts Proj ct d Incom d Pr - op rating

Stat m nt For th

fiv

(5) Y ar P rio

Y ar 1 P1, 945, 440 (860,898.96) 1,084,541.04 Y ar 2 P2, 217, 600 (988,647.51) 1,228,952.49 Y ar 3 P2, 593, 920 (1,131,769.29) Y ar 4 P2, 866, 080 (1,255,532.26) 1,610,547.74 Y ar 5 P3, 242, 400 (1,411,343.36) 1,831,056.64 Sal s L ss: Cost of sal s Gross profit L ss: op rating Exp ns 1,462,150.71 Adv rtising El ctricity Employ Fring B n fits P5, 000 P1, 000 Employ r Contribution Salari s P rmit and lic ns R ntal Paym nt D pr ciation

xp.

P12, 600 P9, 135 P22, 000 P49, 735 (49, 735) (49, 735) P5, 000 P12, 000 3,300 4,634 P72, 000 P9, 135 P242, 000 P32, 816 P9, 500 P6, 000 396,385.00 P5, 500 P13, 200 3,699.60 6,956.40 P79, 200 P9, 135 P264, 000 P32, 816 P10, 500 425,007.00 P6, 050 P14, 520 3,849.60 7,106.40 P87, 120 P9, 135 P264, 000 P32, 816 P11, 600 436,197.00 P1, 019, 043.71 (P265, 713.11) P6, 655 P15, 972 4,250.40 7,953.60 P95, 832 P9, 135 P264, 000 P32, 816 P12, 810 449,424.00 P1, 161, 123.74 P7, 320.50 P17, 569.20 4,599.60 8,528.40 P105, 415.20 P9, 135 P264, 000 P32, 816 P14, 141 463,524.90 P1, 367, 531.74 Offic suppli s

Int r st xp ns Total op rating Exp ns N t incom

b for

Tax

Incom Tax N t incom aft r tax P688, 156.04 (166, 446.81) P521, 709.23 P803, 945.49 (201, 183.65) P602, 761.84 (P308, 337.12) (P370, 259.52) P753, 330.60 P852, 786.62 P997, 272.22 70

Exhibit V ± D Watta Shirts Proj ct d Cash Flow Stat m nt For Fiv Pr ± Op rating

(5) Y ar P riod

Y ar 1 P18, 435 Y ar 2 P556,798.16 Y ar 3 P1,039,879.24 Y ar 4 P1,592,086.29 Y ar 5 P 2,243,594.81 Cash Bal. B g Cash flow from Op rating Activiti s Cash inflows from Op rating Activiti s Coll ction from custom r Total cash inflow from op rating Activiti s Cash outflow fro m op rating Activiti s P20, 750 P5, 000 P1, 000 P12, 600 P9, 135 P22, 000 P44, 000 P3, 000 P1, 945, 440 P1, 945, 440 P907, 181.96 P5, 000 P12, 000 3,300 4,634 P72, 000 P9, 135 P242, 000 P10, 000 P2, 217, 600 P2, 217, 600 P1, 004, 461.76 P2, 593, 920 P2, 593, 920 P1, 154, 793.54 P2, 866, 080 P2, 866, 080 P1, 272, 894.51 P3, 242, 400 P3, 242, 400 P1, 429, 626.61 Paym nt for Purchas s Adv rtising El ctricity Employ Fring B n fits Employ r Contribution Salari s P rmit and Lic ns

R ntal Paym nt

P5, 500 P13, 200 3,699.60 6,956.40 P79, 200 P9, 135 P264, 000 P11, 000 200, 188. 85 P6, 000 P6, 050 P14, 520 3,849.60 7,106.40 P87, 120 P9, 135 P264, 000 P12, 100 216, 067. 67 1,741,992.18 P6, 655 P15, 972 4,250.40 7,953.60 P95, 832 P9, 135 P264, 000 P13, 310 P257, 062

.90 1,945,584.63 P7, 320.50 P17, 569.20 4,599.60 8,528.40 P105, 415.20 P9, 135 P264, 000 P14, 641 283, 679.11 2,156,047.63 R ntal D posits Offic Suppli s Incom Tax paid Int r st Exp ns Total Cash outflow from op rating Activiti s 1,263,316.96 1,552,943.58 71

Continuation of proj ct d cash flow N t Cash inflow (out flow) from Op rating Activiti s P 117,485 682,123.04 664,656.42 851,927.82 920,495.37 1,086,352.37 Cash flow from Inv sting Activiti s Tools and quipm nt P 152,392 P 11,690 P 164,080 Furnitur and Fixtur Total cash out flow from inv sting activiti s cash outflow from financing activiti s Loan Paym nt Borrowing Inv stm nt Withdrawal N t cash outflow from financing activiti s Cash balanc nding P 50,000 P 50,000 P 250,000 P200,000 P 300,000 P18,435 P 250,000 P450, 558.04 P 200,000 P200,000 P915, 214.47 P200,000 P200,000 P1,560, 232.28 P200,000 P200,000 P 2,282, 800.66 P200,000 P200,000 P3, 169, 153.03 Not : Paym nt for purchas s is comput d by adding Purchas s, Dir ct Labor and Fa ctory Ov rh ad 72

Exhibits V - E Watta Shirts Proj ct d Balanc od Y ar 1 Y ar 2 Y ar 3 P450, 558.04 Pr

± Op rating

Y ar 4 P 2,282, 800.66 Y ar 5 P3, 169, 153.03 Ass ts: Cash Inv ntory R nt D posits Offic Suppli s Tools and Equipm nt Furnitur and Fixtur s Accumulat d D pr ciation P18, 435 P20, 750 P44, 000 P3, 000 P152, 390 P59, 099 P44, 000 P3, 500 P152, 390 P915, 214.47 P64, 257.25 P44, 000 P4, 000 P152, 390 P1,560, 232.28 P69, 415.50 P44, 000 P4, 500 P152, 390 P74, 573.75 P44, 000 P5, 000 P152, 390 P79, 732 P44, 000 P5, 500 P152, 390 Total Ass ts Liabiliti s: Loan Payabl Incom Tax Payabl P11, 690 P250, 265 P50, 000 P50, 000 P11, 690 (P32, 816) P688, 421.04 P11, 690 (P65, 632) P1,125, 919.72 P11, 690 (P98, 448) P1, 743, 779.78 P11, 690 (P131, 264) P2, 439, 190.41 P11, 690 (P164, 080) P3, 298, 385.03 P166, 446.81 P166, 446.81

Sh

ts For th

Fiv

(5) Y ars P ri

Total Liability Own r's Equity Capital Balanc B g Add/(D duct): Inv stm nt P201, 183.65 P201, 183.65 P521, 974.23 P602, 761.84 P1, 124, 736.07 P265, 712.11 P265, 712.11 P308, 337.12 P308, 337.12 P370, 259.52 P370, 259.52 P200, 265 P250, 000 (P49, 735) P200, 265 P200, 265 P250, 265 P521, 709.23 P721, 974.23 P924, 736.07 P1, 478, 066.67 P2, 130, 853.29 N t Incom /(loss) Total L ss: Withdrawal Total Own r's Equity Total Liabiliti s and Own r's Equity P753, 330.60 P1, 678, 066.67 P852, 786.62 P2, 330, 853.29 P997, 272.22 P3, 128, 125.50 (P200, 000) P521, 974.23 P688, 421.04 (P200, 000) P924, 736.07 P1,125, 919.72 (P200, 000) P1, 478, 066.67 P1, 743, 779.78 (P200, 000) P2, 130, 853.29 P2, 439, 190.41 (P200, 000) P2, 928, 125.50 P3, 298, 385.03 73

74

Exhibits V ± F Financial Analysis N t Pr s nt Valu Pr s nt Valu of Cash r turns discount d at tw lv p rc nt (12%) Y ar 1 Y ar 2 Y ar 3 Y ar 4 Y ar 5 P 682, 123 .04 P664, 656.42 P845, 017.82 P922, 568.37 P1, 086, 352.37 x x x x x .893 .797 . 712 .636 .567 = = = = = P609, 135.87 P529, 731.17 P601, 652.69 P586, 753.48 P615 , 961.79 P2, 943, 235 (P300, 000) P2, 643, 235 Int rnal Rat of R turn: *Payback P riod = Inv stm nt of P300, 000 Av rag cash r turns p r y ar = .3571 (P 682, 123.04 + P664, 656.42 + P845, 017.82 + P922, 56 8.37 + P1, 086, 352.37)/5 ** Comput th payback p riod in th pr s nt valu of an annuity, it b tw n 2.78% and 2.77%. Y ar 1 PV of annual Cash r turns Divid by Inv stm nt PI P609, 135.87 Profitability Ind x (PI) Y ar 2 Y ar 3 P529, 731.17 P601, 652.69 Y ar 4753.48 P586, Y ar 5 P615, 961.79 P300, 000 2.03 P300, 000 1.77 P300, 000 2.01 P300, 000 1.96 P300, 000 2.05 Curr nt Ratio Y ar 1 Curr nt Ass t Curr nt Liabiliti s Curr nt Ratio P557, 157.04 Y ar 2 P1, 027, 471.72 Y ar 3 P1, 678, 147.78 Y ar 4 P2, 406, 374.41 Y ar 5 P3, 298, 385.03 P166, 446.81 3.347 P201, 183.65 5.107 P265, 712.11 6.316 P308, 337.12 7.804

P370, 259.52 8.908 75

N t Fix d Ass ts Turnov r Ratio Y ar 1 N t incom t fix d ass ts turnov r P521, 709.23

Av . total n t Fix d Ass ts N

Y ar 2 P602, 761.84 Y ar 3 P753, 330.60 Y ar 4 P852, 786.62 Y ar 5 P997, 272.22 P65, 632 P65, 632 P65, 632 P65, 632 P65, 632 7.949 9.184 11.478 12.993 15.195 Equity Turnov r Ratio Y ar 2 N t incom Equity turnov r P521, 709.23

Av . Equity

Y ar 3 P602, 761.84 .502 Y ar 4 P753, 330.60 .417 Y ar 5 P852, 786.62 .337 P723, 355.15 P1, 201, 401.37 P1, 804, 459.98 P2, 529, 489.40 .721 Gross Profit Margin Y ar 1 Gross profit N t sal s Gross profit margin P1, 076, 607.04 Y ar 2 P1, 218, 296.49 Y ar 3 P1, 444, 284.71

Y ar 4 P1, 598, 343.74 Y ar 5 P1, 817, 928.64 P1, 945, 440 P2, 217, 600 P2, 593, 920 P2, 866, 080 P3, 242, 400 .553 .549 .557 .558 .561 Op rating Profit Margin Y ar 1 COS + O. xp N t Sal s Op rating Ratio P1, 257, 283.96 Y ar 2 P1, 413, 654.51 Y ar 3 P1, 574, 876.29 Y ar 4 P1, 704, 956.26 Y ar 5 P1, 874, 868.26 P1, 945, 440 P2, 217, 600 P2, 593, 920 P2, 866, 080 P3, 242, 400 .646 .637 .607 .595

.578 76

Br ak ± Ev n Analysis Sal s Mix Br ak Ev n in units Product Round N ck Collar d Total USP P250 P310 P560 UVC P13.52 P31.10 UCM P236.48 P278.90 SMR 57% 43% CMR Composit UCM P134.79 P119.93 P254.72 45.49% BEP = = FC Composit

UCM P305, 951 P254.72

= 1, 201 units Br ak Ev n in P so BEP = = FC CMR P305, 951 45.49% = P672, 631 77