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Heaven Snow Philippines Businesses Case Study

Essay by   •  February 5, 2019  •  Case Study  •  4,620 Words (19 Pages)  •  119 Views

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This chapter presents the background of the study, context of the study, objectives and significance of the study, scope and limitations, and definition of terms.


        Establishing a business isn’t easy and never will be. There’s always a risk with it. That’s why before a person set up her or his own business, she or he needs to think carefully.

 There are several factors to consider before establishing your business. First, choosing what kind of business to establish a business that will make you stand out among the rest. Second, choosing the location where it can earn profit, or a location that have a large number of people. And lastly, know how much capital will be use in doing a business.

 Philippines only have two seasons – Wet and dry season. Majority of the people likes to eat frozen foods during the wet season or summer and vice versa. A lot of stores selling ice creams, shakes, or anything that is cold everywhere – especially during summer.

A few businesses in the Philippines are being managed by a single person or sole proprietorship. The owners of the businesses mostly used recording books or they manually recording all the transactions occurring in the business per day.

Even though the sole can manage all the operations/transactions, but of course it’s a waste of time for the sole to record all the transactions every day, manually.

There is always a way for us to do things easily. In the society now that the technology is advance and updated. It can help the business sectors to be more productive than they are, it can help them in their difficult or time-consuming works. Nowadays, big companies use technology in controlling and operating their business. Small businesses can also shift from manual to automate. It will help them to manage the business easily and productively.


It is very hard for a small business owner to calculate the income by manually looking to his/her hard copies. Not only because of the poor handwriting of the cashier but also because of some mistakes. That’s why we propose a system that will help the business owner in calculating the income in a systematic way.

 They must first enter the cash sales in the system so that it can record the total sales. Then, compute for the total goods sold by the business and deduct it from the total sales. At the end of the day, the owner will input all the expenses incurred by the business from that day, so that the system will have the proper input to calculate the total expenses. The system will record it daily to properly create monthly and annual gross profit. Then, less all the expenses occur in the gross profit to come up with net income (loss). This will help the owner easily understand what is happening on the business and know if it is profitable or not.


        The general objective of this study is to create a system that will help the owner to monitor all the transactions occurring in the business in a systematic way.

The Specific Objectives of this study are the following:

  • To be able to determine the income generated by the business.
  • To easily monitor the expenses
  • To have a proper system that will give an accurate result
  • To monitor the business if it is profitable or not.


The proposed cash flow system for Heaven Snow will provide more improvements to the business. The implementation of this system will help the internal users in their respective work. This system will develop the business’ method in computing the sales, income, expenses, accounts, etc. It also has an accurate result, unlike manual computation.

This study will benefit the following:

The Owner:

 The system will help the owner in decision-making. It can help her to make a decision for the future of the business. Also, she can easily monitor the income of the business in daily transactions and can identify if the business is profitable or not.

The employees:

        The system will help the employee in reducing their work. They can easily find out the total amount of the product bought by the customer. They will only input the product name and the quantity, and the system will give them the correct amount.


To be able to closely monitor the income and ensure that it is adequate.  The income monitoring system will provide the net income (loss) generated by the business daily, monthly and annually.

  • Sales
  •  Cost of goods sold
  •  Gross profit
  •  Expenses
  •  Net income


Our proposed system has the following limitations:

  • It is for the business only
  • It is not suitable for recommendations
  • It is not downloadable at the internet
  • It only has specific task
  • It will only monitor the income of the business


  • Income – money received in exchange for providing goods.
  • Sales - the exchange of a commodity for money; the action of selling something.
  • Expenses - An expense is a cost that occurs as part of a business’ operating activities during a specified accounting period. 
  • Gross profit - total revenue (equivalent to total sales) minus the cost of goods sold.
  • Net Income - total earnings (or profit); calculated by taking revenues and subtracting the costs of doing business such as taxes and other expenses.
  • Cost of goods sold - accumulated total of all costs used to create a product or service, which has been sold.


Review of related Literature and Studies

(Foreign and Local)

        This chapter is concerned about the review of related literatures and studies which will help to further clarify and understand what the study is all about by giving some examples from previous studies.



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