Education and training program in the hospital APR.pptx
fin21_req
1. January 9, 2013
Mr. Devzon Porras, MSA, CPA
Faculty of the College of Accounting Education
University of Mindanao, Davao City
Sir Porras,
Greetings!
In partial completion of the requirements for the subject Finance 21, I would like to present to
you the following documents and statements in lieu of your requirement of letting us have our
“2-week long business” operations with any business of our choice.
I have to admit that I am no entrepreneur and domestic goddess per se but for the sake of the
subject and for the sake of truly appreciating the business world – entrepreneurship if I may be
exact, here are the outputs for my business.
I decided on having a small chocolate truffle business. So basically I made chocolate truffles.
The process is quite easy, first, melt the chocolate. I decided to use Goya Dark Chocolate for it is
not too sweet and not too expensive also since I am only operating on a limited capital budget of
two hundred and fifty pesos (250php). In order to melt the chocolate, I decided on placing it
inside a pre-heated bowl and carefully mix it. I would present the steps in making this recipe on
to the next documents that I would present.
I got the idea from Food Network, thank God for that channel. Kidding aside, judging on how
my business went, I could say that it is likely to be successful in the future if given enough time
and enough effort. However, I could also say that I did have flaws during my business
operations; the consistency of my quantities, the consistency of my the taste and flavour of my
product – since I often shifted from muscovado to cocoa powder to Milo in terms of my coating
for my chocolate truffles. I did not also opened to wide range of buyers since I frequently sold
2. my products to my neighbours and relatives but also, this opened to another possibility that I
could have occasional orders for the product which I actually did have during the New Year. I
were not able to complete the business for the required two weeks – fourteen days to be exact
and that is because of some personal reasons. Thus, I still present to you the requirements for this
project. I had to make the most of what I could.
Hence, in accordance of this requirement I present you the financial statements of my small
chocolate truffles business to show on how my business went in a short span of two weeks or
twelve days if I may say to be exact. Also I present to you the marketing strategies I used and
applied in order to promote and sell my product hence to acquire higher sales and greater profit
per se. In lieu of this, I also have my realization regarding this requirement, and my thoughts
regarding the small business I ventured in.
Hoping this would give you thoughts to see whether or not I did well in the short span of my
business.
Expecting and hoping for your feedback soon!
Sincerely,
Kristine Joyce Tinga, BSA-student
University of Mindanao, Matina Campus
3. INGREDIENTS
10 packs of 38g Goya Dark Chocolate
Muscovado Sugar
Brown Sugar
Milo
White Sugar
PROCEDURES
1. Pre-heat the pan/bowl
2. Chop/slice the chocolates
3. Put them in the bowl
4. Pound/crush until medium-melted
5. Use spatula or spoon (in my case I used spoon) to mix the chocolate
6. Make sure the chocolate is free from chunks and bits of un-melted chocolates
7. When properly and thoroughly melted, chill for about 45-90 minutes.(in my case I opted
for 1 hour)
8. Take out from the fridge, and grab a handful and roll them with your fingers until you
make a circle
9. Roll the truffle on a bowl of muscovado sugar.
10. Viola! You now have your very own chocolate truffle. You can add peppermint syrup or
vanilla if you like for additional taste. You can also use brown sugar instead of
muscovado or any cocoa or milk powder depending on your choice.
4. MARKETING STRATEGY
Okay, so here goes. Since my target market are my neighbours, I came up with a very
basic marketing strategy – Personal Selling; face-to-face contact with my customers which are
practically my neighbours. In layman’s terms, what I did was basically – visit each house door-
to-door in order for me to introduce my product and give my contact number.
I thought of doing the consignment thing but did not push through with it because first, I
had to divide the profits. Second, I could not have any guaranty of keeping my product fresh
through my consignee even though he/she has the inherent responsibility of keeping it safe.
Third, my consignee options were not really that eligible; a sari-sari store, a bakery, a mini-mart,
a burger stand, a veggie-stall.
In marketing terms, I could say that my marketing strategy could be related to one of
the market coverage strategies – the Differentiated Marketing.
Differentiated Marketing by definition concentrates on several market segments
and designs separate product offers.
It can be related to my case in such way that, I also have different market segments
because my neighbours’ ages varies and so is their tastes and consumption and I also have
separate product offers because some neighbours wanted to buy a couple of pieces only while
others opted to buy a lot.
5. STATEMENT OF COMPREHENSIVE INCOME
INCOME % Amount
NET SALES 100% 2,800php
Total Profit 100% 2,800php
Cost of Sales 73.98% 2071.30php
Total Cost of Goods Sold 2071.30php
TOTAL INCOME 728.70
Expenses:
Consumption Expense 6.53% 182.92
NET INCOME 19.49% 545.78php
6. STATEMENT OF FINANCIAL POSITION
ASSETS
Cash 318php
Inventories 660.70php
TOTAL ASSETS 978.70php
LIABILITIES
Accounts Payable 120php
OWNER’S EQUITY
Tinga, Capital 858.7php
TOTAL LIABILITIES
AND OWNER’S EQUITY 978.70php
7. REALIZATION and REFLECTION
During the two-week course of my very short-termed, chocolate truffles business I
realized that one can start a small business even at home using the products and materials that are
within reach and can be found at home or in stores nearby.
I also realized that it is not easy doing such thing because it requires time, effort and
dedication. To be perfectly honest, I really did not have my heart in this requirement however,
there are things that one has to do so I convinced myself to just give it a shot.
The first days were not so bad; I was able to sell all of my truffles because I sold them to
kids who were playing outdoors, to my neighbours and to some of my relatives who were
visiting. However, there were days when not all my truffles were sold which made me really sad
because first, I really put a lot of effort in making them, second I lost quite a good amount of
mark-up and sales and lastly, I could not sell them the next day because they would not taste that
good anymore so I had no choice but to eat them.
My small chocolate truffles business did okay in the span of twelve days if I may say and
it feels good to start something on your own, earn a little on your own. It feels good to see the
fruit of your very own labor in your own hands. However, I still do not have my whole heart on
this because being an entrepreneur is not part of my plans and goals. Although I can still do this
business occasionally - whenever I receive orders and request but regularly? I doubt so.
So that is practically all of it. Starting small and earning small is good and it feels nice
and fulfilling as well because the fruit of your very own labor is right in front of you. With
proper time management, dedication, effort, selling and promoting skills – a small business such
as mine could turn out great in the long run.
As they say, great things come from small beginnings.
8. GENERAL JOURNAL
2012 Cash
Dec. 22 Tinga, Capital 250
To record the initial investment of Tinga
Inventory
Cash 210
To record the purchases of ingredients
Cash
Sales 312
To record the sales for the day
Cost of Sales
Inventory 209.82
To record the cost of goods sold for the day
Inventory
Dec. 23 Cash 200
To record the purchase of ingredients
Cash
Sales 248
To record sales for the day
Cost of Sales
Inventory 166.78
To record the cost of goods sold
Inventory
Dec. 24 Cash 248
To record the purchase of ingredients
Cash
Sales 280
9. To record sales for the day
Cost of Sales
Inventory 188.30
To record the cost of goods sold
Inventory
Dec. 26 Cash 327
To record the purchase of ingredients
Cash
Sales 304
To record sales for the day
Cost of Sales
Inventory 204.44
To record the cost of goods sold
Inventory
Dec. 27 Cash 280
To record the purchase of ingredients
Cash
Sales 184
To record sales for the day
Cost of Sales
Inventory 123.74
To record the cost of goods sold
Consumption Expense
Inventory 86.08
To record the consumption of unsold
products for the day
10. Purchases
Dec. 28 Cash 172
To record the purchase of ingredients
Cash
Sales 224
To record sales for the day
Cost of Sales
Inventory 150.64
To record the cost of goods sold
Inventory
Dec. 29 Cash 268
To record the purchase of ingredients
Cash
Sales 256
To record the sales for the day
Cost of Sales
Inventory 172.16
To record the cost of goods sold
Inventory
Dec. 30 Cash 261
To record the purchase of ingredients
Cash
Sales 248
To record sales for the day
Cost of Sales
Inventory 166.78
To record the cost of goods sold
11. Inventory
Dec. 31 Cash 292
To record the purchase of ingredients
Cash
Sales 328
To record sales for the day
Cost of Sales
Inventory 225.96
To record the cost of goods sold
2013 Inventory
Jan. 2 Cash 282
To record the purchase of ingredients
Cash
Sales 184
To record sales for the day
Cost of Sales
Inventory 123.74
To record the cost of goods sold
Consumption Expense
Inventory 96.84
To record the consumption of unsold goods
for the day
Inventory
Jan. 3 Cash 192
To record the purchase of ingredients
Cash
Sales 232
12. To record sales for the day
Cost of Sales
Inventory 156.02
To record the cost of goods sold
Class Contribution
Accounts Payable 120
To record proposed class contribution from
profit
Sales 2800
Cost of Sales 1888.38
Expenses 132.92
Income Summary 778.70
To close income and expenses
Income Summary
Tinga, Captial 778.70
To close the income summary account
GENERAL LEDGER
CASH
12-22-12 250 210
312
12-23-12 248 200
12-24-12 280 248
12-26-12 304 327
12-27-12 184 280
15. NOTES – INCOME STATEMENT
(1)
Beginning Inventory 0
Purchases 2732php
Goods Available For Sale 2732php
Ending Inventory 660.70php
Cost of Goods Sold 2071.30php
(2)
The consumption expenses for the dates December 27, 2012 and January 2, 2013 are
actually goods that were not sold and rather consumed by me and my family. I decided not to sell
them anymore the following day because the texture and moisture of the product will be affected
if chilled overnight and will not taste as good as it should if it were fresh and it will be much
harder to bite and chew. If put in the refrigerator rather than the freezer, the product will moist
and may smell like the refrigerator which is not good since it could affect the image of my
product when it comes to freshness; and I do not want to risk the quality of my product that
could affect my profitability since I am still starting.
These expenses are credited to the inventory account net of mark-up since it is the actual
cost of the goods. However, even if it is deemed to have been sold, I am operating on a sole
proprietor basis and these consumption expenses are rather personal and still could be reflected
in my financial statements.
(3)
The cost of goods sold is net of the mark-up price and I believe that the higher the sales, the
lesser the cost of goods sold since the profit margin mark-up absorbs the latter.
16. NOTES – FINANCIAL POSITION
(1)
The aforementioned accounts payable reflects the class contribution that I will be
participating in. Hence, I decided to get the money from the profit of this business since it would
be better because I could already spare beforehand the contribution and avoid contingencies such
as I might overspend and unwillingly spend the allotted contribution.
(2)
The inventories stated are deemed to be the remnants of the muscovado sugar, Milo and
brown sugar. Hence, I no longer have finished goods on hand because as mentioned earlier,
unsold and are already consumed by me and my family. Thus, there are also no more dark
chocolates left since I melt everything I purchase so that I can convert it to finished goods –
chocolate truffles. I do this so that I can make the most of what I have.
17. PRODUCT PRICING
250php -210php = 40php
210php – ingredients used to make chocolate truffles.
On the first day, I was able to make 78 chocolate truffles so...
210php/78pcs = 2.69php/chocolate truffle
18. Selling price 4php
Less: Unit Price 2.69php
Total mark-up per unit 1.31php
48.70% mark-up on price
Note:
I decided to use the same unit price over the days during the operations to uniformity
purposes.