Financial management practices of rice retailers in selected upland municipalities in Cavite / by Anjo M. Arevalo.

Thesis (BS Business Management Major in Financial Management) Cavite State University

Includes bibliographical references.

College of Economics, Management and Developmental Studies (CEMDS)

AREVALO, ANJO M. Financial Management Practices of Rice Retailers in Selected Upland Municipalities in Cavite. Bachelor of Science in Business Management, major in Financial Management, Cavite State University Indang, Cavite. April 2014. Adviser: Prof. Cecilia T. Cayao.
The study was conducted to determine the financial management practices of rice retailers in selected upland municipalities in Cavite. Specifically, the study aimed to determine the demographic profile of rice retailers in selected municipalities in Cavite; determine the business characteristics of rice retailing businesses in Cavite; determine the financial management practices of rice retailers in their business operations; determine the degree of implementation of financial management practices and determine the level of effectiveness of financial management practices in selected upland municipalities in Cavite.
In terms of the demographic profile of the participants, 42 percent belonged to the age bracket of 44 to 52 with a mean of 45, 58 percent were male and only 42 percent were female, 64 percent were married and 47 percent were college undergraduate. As for the business characteristics, 84 percent of the rice retailers were sole proprietorship and the remaining 16 percent was a partnership. The typical number of employees for rice retailing business was 2 to 4 people with a mean of 4. The participants' length of operation ranged from 2 to 11 years with a mean of 5 years. In addition, 87 percent of the rice retailers personally generated funds to finance the setting up of the business. The initial capital of rice retailing business ranged from P10,000 to P85,000 with a mean of P59,112. The estimated sales of rice retailing businesses ranged from P12,000 to P50,000. Fifty-one percent had daily sales of P12,000 to P19,600. In the case of cash management, the study found out that 100 percent of the participants prepared and reviewed cash budgets, and pay business bills and expenses promptly in their business operations. In addition, 89 percent of the rice retailers determined the target cash balance of the business and only 82 percent invested their excess cash in bank, bonds, and securities. Setting of credit policies, recording and listing of creditors to a subsidiary ledger and reviewing level of receivable were done by all of the participants of this study. Among them, only 29 percent granted discounts to creditors for early payment and only 31 percent reviewed percentage of doubtful accounts. One hundred percent of the participants prepared financial statements of their business operations but not frequently using financial ratios and trend analysis in analyzing the financial statements. Rice retailers occasionally implemented their financial management practices with the general mean rating of 3.29. Cash management was moderately implemented getting the highest mean result for about 3.71, while the financial reporting and analysis practices which had a mean rating of 3.22 and 2.94 for accounts receivable management practices were both interpreted as occasionally implemented. The level of effectiveness of the rice retailers was interpreted as moderately implemented with a general mean rating of 3.55. This was due to the results incurred in the cash management practices (4.07), accounts receivable management practices (3.19), and the financial reporting and analysis (3.39).

04/24/2014 T-5386 Submitted to the University Library