Cash management and profitability of bakeries in selected municipalities of Cavite / by Karen B. Cailoa.

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

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

CAILAO, KAREN BARROT. Cash Management and Profitability of Bakeries in Selected Municipalities of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management. Cavite State University, lndang, Cavite. April 2014. Adviser: Ms. Iluminada Hernandez.
A study was conducted in selected areas of Cavite namely: Alfonso, Bacoor City, Dasmarinas City, Gen. Trias and Trece Martires City from December 2013 to January 2014. The study was conducted to analyze the cash management and profitability of bakeries in selected municipalities of Cavite. Specifically, it aimed to identify the socio-economic characteristics of the participants, the business characteristics of bakeries, cash management practices of bakeries, the profitability of the bakeries, and the relationship between cash management and profitability of bakeries in selected municipalities of Cavite.
A total of 110 owners of bakeries served as the participants in the study. Data were collected through personal interviews with the aid of an interview schedule. Percentage, range, means, frequency count and average were used to analyze the data. Tables were also used in the study. Accounting approaches such as gross profit margin, operating profit margin and net profit margin were calculated based on the profit of the bakeries. The age of the participants ranged from 25-64 years with an average of 41 years. Sixty-one percent of the participants (61%) were female and 39 percent were male. Seventy-three percent of the participants were married, 22 percent were single, four percent were widowed and only one percent was separated. Viii
All 1he bakeries included in the study were owned and managed independently by under a single proprietorship, the budget of the bakery owners for their monthly operations ranged from P25, 000 to P100, 000. Filly eight percent of the participant's business were located within the barangay, I8 percent reported that their place of business was located nearby town/plaza, 17 percent located their business within the town and only seven percent was located nearby barangay. The bakery owner's sources of capital were from their personal savings which accounted to 88 percent of the participants while only 10 percent were from the family's assistance. Only two percent of the participants sourced out their capital from bank loan.
The cash management practices of bakeries include cash allocation, cash control and cash budget. Data shows that the cash budgeting of bakery owners had an overall mean of 4.19, standard deviation of 0.842 and interpretation of highly practiced. In terms of cash allocation, the grand mean was 4.18 with a standard deviation of 0.797 and interpretation of moderately practiced. As indicated, cash control had a grand mean of 4.42 with a standard deviation of 0.705 and interpretation of highly practiced. The overall annual gross profit margin of bakeries in selected municipalities of Cavite was 0.36%. The overall operating profit margin was 0.22%. Moreover, the overall net profit margin of the bakeries was 0.21%. The result of the Spearman rank showed that the cash management such as cash budgeting and cash allocation has no significant relationship to profitability such as operating profit margin and net profit margin. However, cash control was found to be significantly related to gross profit margin. This implies that gross profit margin of bakeries is related to their cash control. Gross profit margin tends to increase when cash control was highly practiced.

04/24/2014 T-5509 Submitted to the University Library