Transport Cooperatives

Chapter 1

INTRODUCTION

Background of the Study

The Third District Transport Cooperative is located at

Magsaysay Street, Calinan, Davao City envisions in being a highly

committed, socially developed, economical productive and

spiritual sound transport group that will promote general well-

being and welfare of its members and the riding public.

As a transport cooperative, their mission is to formulate

policies, guidelines and plans geared towards the welfare of the

organization and its clients; initiate projects that will lift-up

economic status of every members; provide seminars and training

to upgrade the knowledge, attitude and skills of the members;

inculcate values on the love of work and service through

spiritual awakening and retreat programs; and coordinate closely

with transport agencies and the other transort groups for social

mobilization.

Their primary objectives are to provide transport service to

commuters; to establish mini-hardware, repair shop, vulcanizing

and car wash; to operate a terminal; to procure basic commodities

and distribute to members and non-members; to operate a

canteen;To generate funds and extend credit to members for

productive and providentials purposes; engage in marketing of

cellpjhone units, spareparts, e-loads, cellcards and etc. also,

they have their secondary objectives: to encourage thrift and

savings mobilization among members for capital formation; to

promote the cooperative as a way of life for improving the social

and economic well-being of the people; to do any related activity

for members self-government, improve social and/or economic well-

being under a truly just democratic society; to work with the

cooperative movement, non-government and government

organization/entities in the promotion and development of

cooperatives and in carrying out government policies; to

undertake other activities for the effective and efficient

impementation of the provision of the cooperative code.

The organization started as an association under the name

DAVCAL. The members of the said association were the drivers and

operators of van units both colorum and those with franchise

operating the Davao-Calinan route. As an association, they have

encountered tremendous problem especially on the availability of

terminal to settle their units and the commuting public.

As such, they have learned that in order to solve their

problems they have to register themselves as cooperative. On

September 21, 1999, TDTC (Third District Transport Cooperative)

was registered with the Cooperative Development Authority (CDA)-

Davao Extension Office with registration no.RN-6023-DVO. With a

starting capital of P. 49,500.00 and the determination to help

each and everyone to improve their economic situation they have

started operating a terminal as its first activity with only 10

units catering Calinan route.

But during this time, it was not good as they expected. Due

to poor recording, less transparent operation and conflict

between or among officers, the cooperative expereienced a

worsening condition in the year 2000 and 2001 respectively

wherein it can no longer provide and serve the needs of its

members.

In 2001, when TDTC conducted its election, they found hope

in getting into the track, the chance of recovering and bringing

the coop to the place where it should be. It was this time that

Mr. Rogelio Rolona become the chairman of TDTC. Being an original

member and a witness to the undesirable occurrence in the

cooperative, he envisioned for the coop to grow each year. Using

his experience in the organization and his strong will to help

the fellow members, he introduced some reforms into the system

taking into consideration proper recording, transparency,

linkage, continuous education and a hard fist to implement the

policies of the cooperative.

From then on and every year after the other, the cooperative

is enjoying a continuous success and growth. From its humble

beginning, the assets increased to more than P 6,000,000.00 and

the number of units operating increased to more than 30.Today the

cooperative is successfully providing its members services like

regular loan, emergency loan, petty cash loan and auto loan aside

the opreation and management of terminal.

Cooperatives, as economic enterprises and as self-help

organizations, play a meaningful role in uplifting the socio-

economic conditions of their members and their local

communities.With their concern for their members and communities,

they represent a model of economic enterprise that places high

regard for democratic and human values and respect for the

environment.

While relatively few in number, cooperatives in the

transportation sector encompass a broad range of functionality.

Often members of cooperatives in this sector are other service

organizations. The cooperatives may be organized to meet the

demand for services in lower-density rural areas, or in areas

that cross geographic jurisdictional boundaries. The cooperative

may be created to meet specialized transport requirements of

school districts or those with limited mobility. Cooperatives are

also organized to offer transportation alternatives that reduce

the number of car trips in an effort to address environmental and

sustainability issues that accompany the heavy traffic demands of

urban areas.

As the world today faces unstable financial systems,

increased insecurity of food supply, growing inequality

worldwide, rapid climate change and increased environmental

degradation, it is increasingly compelling to consider the model

of economic enterprise that cooperatives offer.The cooperative

sector, especially in developing countries, also presents itself

as an important element that can contribute to the realization of

the Millennium Development Goals (MDGs) by 2015.

Chapter 2

REVIEW OF RELATED LITEARATURE

This chapter contains literature and studies from magazines,

books, the internet, and journals related to the study, theory

base, the conceptual framework, and hypothesis of the study.

Related Literature and Study

A cooperative ("coop") or co-operative ("co-op") is an

autonomous association of persons who voluntarily cooperate for

their mutual social, economic, and cultural benefit.

[1] Cooperatives include non-profit community organizations and

businesses that are owned and managed by the people who use its

services (a consumer cooperative) or by the people who work there

(a worker cooperative) or by the people who live there (a housing

cooperative), hybrids such as worker cooperatives that are also

consumer cooperatives or credit unions, multi-stakeholder

cooperatives such as those that bring together civil society and

local actors to deliver community needs, and second and third

tier cooperatives whose members are other cooperatives.

The International Co-operative Alliance was the first

international association formed by the movement. It includes

the World Council of Credit Unions. A second organization was

formed later in Germany, the International Raiffeisen Union. In

the United States, the National Cooperative Business

Association (NCBA) serves as the sector's oldest national

membership association. It is dedicated to ensuring that

cooperative businesses have the same opportunities as other

businesses operating in the country and that consumers have

access to cooperatives in the marketplace. A U.S. National

Cooperative Bank was formed in the 1970s. By 2004, a new

association focused on worker co-ops were founded, the United

States Federation of Worker Cooperatives.

http://en.wikipedia.org/wiki/Cooperative

A cooperative is a legal entity owned and democratically

controlled by its members. Members often have a close association

with the enterprise as producers or consumers of its products or

services, or as its employees.

In some countries, e.g. Finland and Sweden, there are specific

forms of incorporation for cooperatives. Cooperatives may take

the form of companies limited by shares or by guarantee,

partnerships or unincorporated associations. In the UK they may

also use the industrial and provident society structure. In the

USA, cooperatives are often organized as non-capital stock

corporations under state-specific cooperative laws. However, they

may also be unincorporated associations or

business corporations such as limited liability companies

or partnerships; such forms are useful when the members want to

allow.

1.some members to have a greater share of the control, or

2.Some investors to have a return on their capital that

exceeds fixed interest,neither of which may be allowed

under local laws for cooperatives.

Cooperatives often share their earnings with the membership

as dividends, which are divided among the members according to

their participation in the enterprise, such as patronage,

instead of according to the value of their capital

shareholdings (as is done by a joint stock company).

Identity

Cooperatives are typically based on the cooperative values of

"self-help, self-responsibility, democracy and equality, equity

and solidarity" and the seven cooperative principles:

1.Voluntary and open membership

2.Democratic member control

3.Economic participation by members

4.Autonomy and independence

5.Education, training and information

6.Cooperation among cooperatives

7.Concern for community

Cooperatives are dedicated to the values of openness, social

responsibility and caring for others. Such legal entities have a

range of social characteristics. Membership is open, meaning that

anyone who satisfies certain non-discriminatory conditions may

join. Economic benefits are distributed proportionally to each

member's level of participation in the cooperative, for instance,

by a dividend on sales or purchases, rather than according

to capital invested.

Cooperatives may be classified as

either worker, consumer, producer, purchasing or housing cooperatives.

They are distinguished from other forms of incorporation in that

profit-making or economic stability are balanced by the interests

of the community. Co-ops can sometimes be identified on the

Internet through the use of the .coop suffix of internet

addresses. Organizations using .coop domain names must adhere to

the basic co-op values.

According to the definition of an article, “Management

Strategies”, cooperatives are the SHOs (Self-Help Organizations)

presently utilized by the government as the more effective tools

for economic development. The Cooperative Development Authority

(CDA), the government agency in charge of development and

monitoring cooperatives in the country gives this definition - a

voluntary organization of people who have agreed to pool their

resources together in order to undertake an economic enterprise

for the purpose of meeting their common needs, and which they

themselves democratically manage and control, and share the

economic benefits on the basis of participation and patronage.

In this definition, cooperatives are SHOs which are also

business enterprises which the members themselves own, manage and

control in accordance with accepted democratic principles. They

are not organized primarily for profit or to serve other people

but to serve the needs of their own members. Memberships in

cooperatives is voluntary and open to all those who need their

services. Finally, the economic benefits from cooperatives are

shared by the members in proportion to the individual member's

patronage of the business or enterprise.

A study of cooperatives in Uruguay, Burdín and Dean (2009)

show that during the 2002 Argentine financial crisis, worker

cooperatives decreased employment less than conventional firms.

They argue that conventional firms produce a socially inefficient

level of lay-offs during recessionary periods due to their

“inability to establish credible commitments between owners and

workers.” In contrast, cooperatives are more able to adjust wages

rather than employment during crises, which Burdín and Dean call

a more egalitarian adjustment method. Burdín (2012) looks at

cooperative and conventional firm survival in Uruguay. He finds

that cooperatives have a 24-38% lower hazard of exit than

conventional firms when controlling for other firm

characteristics. The study provides econometric support for the

aforementioned descriptive work done on cooperative survival in

various Canadian provinces.

In general, there are multiple strategies that firms can

follow to get new technology that they need to compete and to

grow. For example, firms can develop new patents, or license new

technology from another company. Cooperatives can and do pursue

these strategies, but in addition, cooperatives have comparative

advantages in certain types of innovation.

Theories of Co-operation

The history of the co-operative enterprise is intertwined

with the economic and social theories that have shaped the past

165 years of its existence. Compared with Marxism and its liberal

free market alternative, co-operative enterprise has remained

largely apolitical and pragmatic in nature. However, it has also

been weak in terms of the development of strong underlying

theory, due in part to its focus on applied and practical

outcomes.

Theories of co-operation and competition suggest that human behaviour

involving co-operative exchanges is motivated by desires for reward and self-

advancement rather than altruism. As such it is consistent with the

underlying principles of free market economics based on the

concept of self-advancement and reward seeking. In many cases co-

operative behaviour can serve as a means of reducing selfishness,

free riding and cheating within the system as individuals realise

that mutual benefits can emerge by collaborative engagement.

Theoretical foundations of co-operative behaviour can be

found in game theory and the notion of “tit-for-tat” responses to

free riding or cheating.

Faced with mutual reciprocity that can either reward co-operative behaviour or

punish selfishness the individual is more likely to choose a co-operative path.

Reciprocal altruism suggests that individuals who give or share

benefits with others expect a return from those who receive such

benevolence. Free riding and cheating can damage such reciprocal

behaviour and is more likely where the population is highly

mobile. In more stable communities such behaviour is quickly

punished by having these individuals excluded from further

participation in future collaboration.

Co-operation between individuals requires the existence of

mutual trust and a sense of procedural justice. Where a minority

of individuals behaves in a purely selfish manner without any

consequences the underlying sense of fairness, morality and

mutual obligation breakdown within the community and the majority

also begin to behave in a selfish manner.

The participation of individuals in co-operatives can be

explained in terms of the mutual incentives theory which draws together

theories of social exchange and social co-operation. The first

suggests that people engage in social relationships after

considering the costs and benefits of doing so. The second

suggests that co-operation is motivated by a sense of common or

shared goals between individuals.

Chapter 3

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter contains the analysis and the interpretation of

data gathered.

Financial Condition

Table 1. Statement of Assets

Table 1 shows the statement of assets of Third District

Transport Cooperative (TDTC) from year 2009 up to 2013. In terms

of cash and cash equivalent from year 2009 to 2010 it increases

from 242,118.63 to 243,790.43 up to 2011 it decreases to

232,849.21 up to 2012 it continues to decrease to 71,033.35 but

in 2013 it increases back to 88,402.55 but it is smaller compared

to year 2009 and 2010. In terms of loans and receivables from

year 2009 to 2010 it decreases from 8,706,371.63 to 6,683,023.19

up to 2011 it increases back to 6,710,762.12 but decreases back

to 6,636,220.12 but it year 2013 it increases back to

6,687,135.97 but smaller compared in year 2009. From their

current assets, from the year 2009 to 2013, it decreases from

9,312,753.42 down to 6,874,538.50. In their non-current assets,

from 2009 it increases from 622,904.32 to 679,739.96 in the yaer

of 2010 but it decreases back in the year 2011 to 659,524.47 and

increases back to 721,329.13 but in the year 2013, it decreases

back amounting to 666,680.69. And their overall total assets

decrease from the year 2009 to 2013 decreases from 9 million down

to 7 million.

Table 1. Statement on Assets

Assets 2009 2010 2011 2012 2013Current AssetsCash and Cash Equivalent

242,118.63

243,790.43

232,849.21

71,033.35

88,402.55

Loans and Receivables

8,706,371.63

6,683,023.19

6,710,762.12

6,636,220.12

6,687,135.97

Security Deposits 299,062.50

90,000.00

99,000

Mdse Inventories 302,197.60

431,470.86

Other Current Assets 62,065.56

169,062.50

Total Current Assets 9,312,753.42

7,527,346.98

7,168,131.83

6,871,795.47

6,874,538.50

Non-Current AssetsProperty and Equipment (net)

622,904.32

679,739.96

659,524.47

721,329.13

666,680.69

Total Non-current Assets

622,904.32

679,739.96

659,524.47

721,329.13

666,680.69

Total Assets 9,935,657.74

8,207,086.94

7,827,656.30

7,593,124.60

7,541,219.20

Current Assets

Graph 1 shows the current assets of TDTC. The total

current assets decrease from year 2009 to 2013 down to 9 million

to 6 million. We can see that there is a decreased in every asset

every year. Thus, the total current asset from the year 2009 to

2013 has decreased.

Graph 1. Current Assets

Cash and Cash Equivalent

Loans and Receivables

Security Deposits

Mdse Inventories

Other Current Assets

Total Current Assets

0.002,000,000.004,000,000.006,000,000.008,000,000.0010,000,000.00

20092010201120122013

Current Assets in Percentage

Graph 2 shows the current assets of Third District Transport

Cooperative (TDTC) from the year 2010 to 2013. In the year 2010

the total current asset has a percentage of 19.2%; in 2011 the

total current asset has a percentage of 23%; in 2012 the total

current asset has a percentage of 26.2%; in 2013 the total

current asset is still on its stable condition with a percentage

of 26.2%.

Graph 2. Current Assets in Percentage

2010 2011 2012 2013

-30.00%

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

Current Assets

Total Assets

Graph 3 shows the total assets of TDTC. There is a decrease

from year 2009 to 2013 down to 9 million to 7 million. Thus, we

can say that their toatal assets have decreased.

2009 2010 2011 2012 20130.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

1,600,000.00

Total Non-current AssetsProperty and Equipment (net)

Total Assets in Percentage

Graph 2 shows the total assets of Third District Transport

Cooperative (TDTC) from the year 2010 to 2013. In the year 2010

the total asset has a percentage of 17.4%; in the year 2011 the

total asset has a percentage of 21.2%; in the year 2012 the total

asset has a percentage of 23.6%; in the year 2013 the total asset

has a percentage of 24.1%.

2010 2011 2012 2013

-30.00%

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

Total Assets

Statement of Liabilities

Table 2 shows the statement of liabilities of Third District

Transport Cooperative (TDTC) from year 2009 to 2013. In terms of

their deposits liabilities it decreases from 800,000 down to

50,000 in year 2009 to 2013. Also, in terms of trade, non-trade

and other payables, it decreases from 500,000 to 200,000 from

year 2009 to 2013. We could see that there is a decreased in

their total current liabilities. From 2,000,000 it decreases down

to 400,000. In terms of retirement fund payable, we could see the

same amount from 2010 up to 2013 except for year 2009 having an

amount of 128,872.23. Overall, the total liabilities of TDTC have

decreased from 2,000,000 down to 700,000 from year 2009 to 2013.

Table 2. Statement of Liabilities

Liabilities 2009 2010 2011 2012 2013Accrued Expenses and Other Payables

125,391.73

124,387.63

Current LiablitiesDeposits Liabilities 890,032.9

2342,061.3

6101,590.8

4168,101

.0550,722.6

0Trade, Non-Trade and other Payables

558,612.32

576,152.86

591,776.56

247,084.00

236,194.00

Due to Union/Federation

187,176.57

142,206.17

Interest on Share Capital Payable

809,511.93

485,886.94

Patronage Refund PayableTotal Current Liabilities

2,445,333.74

1,551,307.33

693,367.40

540,576.78

411,304.23

Non-current LiabilitiesLoan Guarantee Fund 142,429.8

4142,429

.84142,429.

84Retirement Fund 128,872.2 165,405.0 165,405.0 165,405 165,405.

Payable 3 8 8 .08 08Total Non-current Liabilities

128,872.23

165,405.08

307,834.92

307,834.92

307,834.92

Total Liabilities 2,574,205.97

1,716,712.41

1,001,202.03

848,411.07

719,139.15

Total Current Liabilities

Graph 3 shows the total current liabilities of TDTC

from year 2009 to 2013. We could see that there is a decreased of

current liabilities from year 2009 down to 2013 in an amount from

2,000,000 down to 400,000.

Graph 3. Total Current Liabilities

0

1000000

2000000

3000000

20092010201120122013

Total Current Liabilities in Percentage

Graph 4 shows the total current liabilities of Third

District Transport Cooperative (TDTC) from the year 2010 to 2013.

In the year 2010 the total asset increased in a percentage of

36.6%; in the year 2011 the total asset increased in a percentage

of 71.6%; in the year 2012 the total asset increased in a

percentage of 77.9%; in the year 2013 the total asset increased

in percentage of 83.2%. Overall, the year 2010 to 2013 the total

current liabilities have increased.

Graph 4. Total Current Liabilities in Percentage

2010 2011 2012 2013

-90.00%-80.00%-70.00%-60.00%-50.00%-40.00%-30.00%-20.00%-10.00%0.00%

Total Current Liabilities

Total Liabilities in Percentage

Graph 5 shows the total liabilities of Third District

Transport Cooperative (TDTC) from the year 2010 to 2013. In the

year 2010 the total liability percentage is 33.3%; in the year

2011 the total liability has a percentage of 61.1%; in the year

2012 the total liability has a percentage of 67%; in the year

2013 the total liability has a percentage of 72.1%.

Graph 5. Total Liabilities in Percentage

2010 2011 2012 2013

-80.00%

-70.00%

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

Total Liabilities

Non-current Liabilities

Graph 6 shows the non-current liabilities of TDTC fom

year 2009 to 2013. As observed, there is an increased of non-

current liability from year 2009 to 2010 and a stable pattern

from year 2011 to 2013. Overall, there total liabilities have

decreased from 2,000,000 to 700,000 from year 2009 to 2013.

Total Current Assets and Current Liabilities

In this graph, it shows the total current assets and

current liabilities of TDTC from year 2009 to 2013. The total

current assets are higher than the current liability which

indicates that the cooperative has the ability to pay its current

liabilities. Having this kind of condition, it is a good sign

that the coop has a good financial condition.

2009 2010 2011 2012 20130

500000

1000000

1500000

2000000

2500000

3000000

Loan Guarantee FundRetirement Fund PayableTotal Non-current LiabilitiesTotal Non-current LiabilitiesTotal Liabilities

2009 2010 2011 2012 20130.00

1,000,000.002,000,000.003,000,000.004,000,000.005,000,000.006,000,000.007,000,000.008,000,000.009,000,000.0010,000,000.00

Total Current AssetsTotal Current Liabilities

Members Equity

Graph 7 shows the members equity of TDTC from year 2009 to

2013. In terms of share capital, there is an increase from

4,000,000 up to 5,000,000 in year 2009 to 2013. In terms of

statutory fund, there is a decreased from 2,000,000 down to

1,000,000. Overall, there total equity has a big amount in year

2009 amounting to 7,000,000 but decreasesfrom year 2010 to 2013

amouting to 6,000,000.

Graph 7. Members Equity

2009 2010 2011 2012 2013-1,000,000.00

0.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

Share CapitalGeneral Reserved FundDeficitStatutory FundsTotal Equity

Members Equity in Percentage

Graph 8 shows the total members equity of Third District

Transport Cooperative (TDTC) from the year 2010 to 2013. In the

year 2010 the percentage is 11.8%; in the year 2011 the

percentage is 7.3%; in the year 2012 the percentage is 8.4%; in

the year 2013 the percentage is 7.3%.

Graph 8. Member’s equity in Percentage

2010 2011 2012 2013

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

Total Members Equity

Total Liabilities and Members Equity

Graph 9 shows the total liabilities and member’s equity of

TDTC in year 2009 to 2013. The amount decreases from 9,000,000

down to 7,000,000 in year 2009 to 2013. Thus, there is a

decreased in the total liabilities and member’s equity of TDTC

from year 2009 to 2013.

Graph 9. Total Liabilities and Members Equity

Total Liabilities and Members Equity in Percentage

Graph 10 shows the total liabilities and member’s equity of

Third District Transport Cooperative (TDTC) from the year 2010 to

2013. In the year 2010 the total percentage is 17.4%; in the year

2009 2010 2011 2012 20130.00

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00

Total Liab.,&Members Equity

Total Liab.,&Members Equity

2011 the total percentage is 21.2%; in the year 2012 the total

percentage is 23.6%; in the year 2013 the total is 24.1%.

Graph 10. Total Liabilities and Members Equity in Percentage

2010 2011 2012 2013

-30.00%

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

Total Liabilities and Members Equity

Revenue

Table 3 shows the revenue of TDTC in year 2009 to 2013. In

terms of service operation it decreases from 500,000 to 400,000

in year 2009 to 2010 and increases up in an amount of 4,000,000

and decrease back to 3,000,000 in year 2011 to 2012 and in year

2013, it continues to decrease amounting to 1,000,000. Overall,

their total revenue decreases from 4,000,000 down to 2,000,000 in

year 2009 to 2013.

Table 3. Revenue

REVENUE 2009 2010 2011 2012 2013Income from Credit Operation

P531,848.34

55,901.32 19,427.79 8,700.00

Income from Service Operation

507,636.56 425,628.91

4,031,703.00

3,654,086.60

1,985,375.00

Income from Terminal Operation

3,752,499.00

4,203,339.00

537,316.85

45,531.90 339,508.85

Income from Consumer Operation

157,476.80 31,224.87 87,643.00

Total Revenue 4,949,460.70

4,653,644.36

4,500,804.64

3,708,318.50

2,324,883.85

Less: General &Administrative Expenses

3,879,832.30

3,959,520.16

4,563,902.34

3,878,361.80

2,445,493.21

Net Surplus P1,069,628.

40

649,124.20

63,097.70 -170,043.3

0

-120,609.4

4

Total Revenue

Graph 11 shows the total revenue of TDTC in year 2009 to

2013. It is observed that there is a decrease from year 2009 to

2013 continuously.

2009 2010 2011 2012 20130.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

Total Revenue

Total Revenue

Net Surplus

Graph 12 shows the net surplus of TDTC from 2009 t 2013. The

net surplus form year 2009 has decreased from 1,000,000 down to -

100,000. We could see that it decreases continuously from 2009 to

2013.

Graph 12. Net Surplus

2009 2010 2011 2012 2013

-400,000.00

-200,000.00

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

Net Surplus

Net Surplus

Chapter IV

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

Presented in this chapter are the summary of findings,

conclusion and recommendations based on the results on the

analysis and interpretation of data.

Summary of Findings

Statement of Assets

The current assets of Third District Transport Cooperative

(TDTC) have been decreasing from year 2009 down to 2013. From its

loans and receivable, it is good that they have lessened it every

year. Also, the total current assets are higher than the current

liability which indicates that the cooperative has the ability to

pay its current liabilities. In linw with this, it is a good sign

that the coop has a good financial condition. It has also been

observed that there is a decrease in total assets every year of

the cooperative. But good thing is that their liability is not

increasing but decreasing.

Statement of Liabilities

The total liabilties of the cooperative have been

decreasing every year. It is a good sign that they have been able

to pay their liabilities and lessened it. In comparing their

current assets and current liabilities, their assets are higher

than current liabilities.

Members Equity

It is observed that their sharing of capital is

increasing. And their total equity is high in year 2009 compared

in year 2011 to 2013.

Revenue

It is observed that the total revenue of the

cooperative has been decreasing continuously every year. In this

situation, it is alarming if the revenue continues to decrease on

the following year. The financial ability of the cooperative

would be at risk if this may happen.

Net surplus

Referring to graph 12, the net surplus has been

decreasing from year 2009 down to 2013.

Conclusion

The current assets of Third District Transport Cooperative

(TDTC) have been decreasing from year 2009 down to 2013.

The total liabilties of the cooperative have been decreasing

every year.

It is observed that their sharing of capital is increasing.

It is observed that the total revenue of the cooperative has

been decreasing continuously every year.

The net surplus has been decreasing from year 2009 down to

2013.

Recommendation

The cooperative board of members must take an action on the

decreasing revenue of the cooperative. In order to avoid a

continuous decrease every year.

A systematic review and appraisal of the cooperative in

relation to the development of its most essential building

blocks-its members, its people, and its distinctive

contribution to the development of its community and society

as a whole.