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Appendix 1

Pro-forma Income Statement

MAGNUM INCORPORATED
Pro-forma Income Statement
For the period from Year 1 to Year 5
Year 1 Year 2 Year 3 Year 4 Year 5

Gross Sales Revenue 6,452,209.75 6,509,447.48 7,214,392.09 8,134,658.60 8,883,124.42

VAT Output Tax (12%) 691,308.19 697,440.80 772,970.58 871,570.56 951,763.33

Net Sales Revenue 5,760,901.56 5,812,006.68 6,441,421.51 7,263,088.04 7,931,361.09

Cost of Sales 2,327,114.13 2,705,377.35 2,827,743.43 3,302,817.11 3,204,263.05

Gross Income 3,433,787.43 3,106,629.33 3,613,678.08 3,960,270.93 4,727,098.04

Less: Operating Expenses


Advertising Expense 115,218.03 116,240.13 128,828.43 145,261.76 158,627.22
Depreciation Expense 137,029.41 137,029.41 134,029.41 134,029.41 134,029.41
Repairs & Maintainance 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
Rent Expense 471,000.00 506,325.00 544,299.38 585,121.83 629,005.96
Salaries and Wages 1,680,000.00 1,680,000.00 1,730,400.00 1,730,400.00 1,782,312.00
SSS Contribution 96,201.60 96,201.60 96,565.20 96,565.20 99,110.40
Phil Health/Medicare 21,000.00 21,000.00 21,000.00 21,000.00 21,000.00
Employee Benefits 140,000.00 140,000.00 144,200.00 144,200.00 148,526.00
Utilities Expense 257,142.86 262,285.71 267,531.43 272,882.06 278,339.70
Supplies Expense 16,501.03 16,501.03 12,818.66 12,818.66 12,818.66
Miscellaneous Expense 7,372.00 7,372.00 7,372.00 7,372.00 7,372.00
Amortization Expense 2,335.20 2,335.20 2,335.20 2,335.20 2,335.20
Total Operating Expenses 2,978,800.13 3,017,954.89 3,122,044.51 3,184,650.92 3,306,141.35

Operating Income 454,987.30 88,674.44 491,633.58 775,620.01 1,420,956.69


Less: Interest Expense (16%) 72,797.97 14,187.91 78,661.37 124,099.20 227,353.07

Earnings before Tax 382,189.33 74,486.53 412,972.20 651,520.81 1,193,603.62


Less: Income Tax (32%) 122,300.59 23,835.69 132,151.11 208,486.65 381,953.16

Net Income 259,888.75 50,650.84 280,821.10 443,034.16 811,650.46

Pro Forma Income Statement


Page 1 of 30
Appendix 1
Pro-forma Income Statement

MAGNUM INCORPORATED
Pro-forma Income Statement
For the period from Year 6 to Year 10
Year 6 Year 7 Year 8 Year 9 Year 10

Gross Sales Revenue 9,826,145.99 10,475,698.20 12,152,156.07 12,468,776.59 14,033,552.17

VAT Output Tax (12%) 1,052,801.36 1,122,396.24 1,302,016.72 1,335,940.35 1,503,594.88

Net Sales Revenue 8,773,344.63 9,353,301.97 10,850,139.35 11,132,836.24 12,529,957.30

Cost of Sales 3,613,582.34 3,781,551.76 4,374,788.59 4,438,733.42 4,979,744.44

Gross Income 5,159,762.29 5,571,750.20 6,475,350.75 6,694,102.83 7,550,212.86

Less: Operating Expenses


Advertising Expense 175,466.90 187,066.04 217,002.79 222,656.72 250,599.15
Depreciation Expense 134,029.41 134,029.41 134,029.41 134,029.41 134,029.41
Repairs & Maintainance 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
Rent Expense 676,181.42 726,895.02 781,412.14 840,018.06 903,019.41
Salaries and Wages 1,782,312.00 1,835,781.36 1,835,781.36 1,890,854.80 1,890,854.80
SSS Contribution 99,110.40 99,475.20 99,475.20 102,024.00 102,024.00
Phil Health/Medicare 21,000.00 21,600.00 21,600.00 21,750.00 21,750.00
Employee Benefits 148,526.00 152,981.78 152,981.78 157,571.23 157,571.23
Utilities Expense 283,906.48 289,584.62 295,376.31 301,283.84 307,309.52
Supplies Expense 12,818.66 12,818.66 12,818.66 12,818.66 12,818.66
Miscellaneous Expense 7,372.00 7,372.00 7,372.00 7,372.00 7,372.00
Amortization Expense - - - - -
Total Operating Expenses 3,375,723.27 3,502,604.09 3,592,849.66 3,725,378.73 3,822,348.18

Operating Income 1,784,039.02 2,069,146.11 2,882,501.09 2,968,724.10 3,727,864.67


Less: Interest Expense (16%) - - - - -

Earnings before Tax 1,784,039.02 2,069,146.11 2,882,501.09 2,968,724.10 3,727,864.67


Less: Income Tax (32%) 570,892.49 662,126.76 922,400.35 949,991.70 1,192,916.70

Net Income 1,213,146.54 1,407,019.35 1,960,100.74 1,918,732.39 2,534,947.98

Pro Forma Income Statement


Page 2 of 30
Appendix 1
Pro-forma Income Statement

137029.41

Pro Forma Income Statement


Page 3 of 30
APPENDIX 2
PRO-FORMA BALANCE SHEET

MAGNUM INCORPORATED
Pro-forma Balance Sheet
As of December 31, Year 0 to Year 10

Y E A R
0 1 2 3 4 5

ASSETS
Currents Assets
Cash 102,089.74 488,134.94 1,326,578.29 1,358,081.73 2,540,573.94 1,463,400.32
Inventory 23,768.79 848,568.74 160,287.19 691,829.74 234,710.03 489,740.27
Supplies on Hand 18,481.15 1,238.75 1,238.75 1,238.75 1,238.75 1,238.75
Prepaid Expense 482,404.80 -
Total Current Assets 626,744.48 1,337,942.43 1,488,104.23 2,051,150.22 2,776,522.72 1,954,379.34

Fixed Assets
Land 550,000.00 550,000.00 550,000.00 550,000.00 550,000.00 550,000.00
Office Assets 91,700.00 91,700.00 91,700.00 91,700.00 91,700.00 90,500.00
Store Assets 34,200.00 34,200.00 24,200.00 34,200.00 24,200.00 33,000.00
Plant and Plant Assets 403,422.47 403,422.47 403,422.47 403,422.47 403,422.47 392,722.47
Vehicle 800,000.00 800,000.00 800,000.00 800,000.00 800,000.00 800,000.00
Total Fixed Assets 1,879,322.47 1,879,322.47 1,869,322.47 1,879,322.47 1,869,322.47 1,866,222.47
Less: Accumulated Depreciation - 134,029.41 268,058.83 392,088.24 526,117.65 650,147.07
Total Fixed Assets 1,879,322.47 1,745,293.06 1,601,263.64 1,487,234.23 1,343,204.82 1,216,075.40

Intangibles
Leasehold Improvement 477,381.00 477,381.00 477,381.00 477,381.00 477,381.00 477,381.00
Less: Accumulated Depreciation - 47,738.10 95,476.20 143,214.30 190,952.40 238,690.50
Other Assets 11,676.00 11,676.00 11,676.00 11,676.00 11,676.00 11,676.00
Less: Amortization - 2,335.20 4,670.40 7,005.60 9,340.80 11,676.00
Total Intangibles 489,057.00 438,983.70 388,910.40 338,837.10 288,763.80 238,690.50

TOTAL ASSETS 2,995,123.95 3,522,219.19 3,478,278.27 3,877,221.55 4,408,491.34 3,409,145.24

LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities
Rent Payable - 43,960.00 47,257.00 50,801.27 54,611.37 58,707.22
Utilities Payable - 24,000.00 24,480.00 24,969.60 25,468.99 25,978.37
Interest Payable - 27,935.50 27,935.50 27,935.50 27,935.50 27,935.50
VAT Output Tax Payable - 49,010.40 49,106.55 54,879.44 62,470.04 68,525.70
Income Tax Payable - 122,300.59 23,835.69 132,151.11 208,486.66 381,953.16
Dividends Payable - 100,000.00
Total Current Liabilities - 267,206.49 172,614.74 290,736.92 378,972.56 663,099.95

Long-term Liabilities
Long-term loan 2,095,123.95 2,095,123.95 2,095,123.95 2,095,123.95 2,095,123.95 -

TOTAL LIABILITIES 2,095,123.95 2,362,330.44 2,267,738.69 2,385,860.87 2,474,096.51 663,099.95

Stockholder's Equity
Capital Stock (P10 par value) 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00
Retained Earnings - 259,888.75 310,539.58 591,360.68 1,034,394.83 1,846,045.29

TOTAL STOCKHOLDER'S EQUITY 2,995,123.95 1,159,888.75 1,210,539.58 1,491,360.68 1,934,394.83 2,746,045.29

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY


2,995,123.95 3,522,219.19 3,478,278.27 3,877,221.55 4,408,491.34 3,409,145.24
APPENDIX 2
PRO-FORMA BALANCE SHEET

MAGNUM INCORPORATED
Pro-forma Balance Sheet
As of December 31, Year 0 to Year 10

YEAR
6 7 8 9 10

ASSETS
Currents Assets
Cash 3,213,202.51 4,620,331.25 7,283,196.99 9,216,291.55 12,283,232.80
Inventory 192,302.58 355,577.89 24,548.71 207,691.98 35,835.25
Supplies on Hand 1,238.75 1,238.75 1,238.75 1,238.75 1,238.75
Prepaid Expense
Total Current Assets 3,406,743.84 4,977,147.89 7,308,984.45 9,425,222.28 12,320,306.80

Fixed Assets
Land 550,000.00 550,000.00 550,000.00 550,000.00 550,000.00
Office Assets 91,700.00 91,700.00 91,700.00 91,700.00 91,700.00
Store Assets 24,200.00 34,200.00 24,200.00 34,200.00 24,200.00
Plant and Plant Assets 403,422.47 403,422.47 403,422.47 403,422.47 403,422.47
Vehicle 800,000.00 800,000.00 800,000.00 800,000.00 800,000.00
Total Fixed Assets 1,869,322.47 1,879,322.47 1,869,322.47 1,879,322.47 1,869,322.47
Less: Accumulated Depreciation 771,076.48 895,105.90 1,029,135.31 1,153,164.72 1,293,194.14
Total Fixed Assets 1,098,245.99 984,216.57 840,187.16 726,157.75 576,128.33

Intangibles
Leasehold Improvement 477,381.00 477,381.00 477,381.00 477,381.00 477,381.00
Less: Accumulated Depreciation 286,428.60 334,166.70 381,904.80 429,642.90 477,381.00
Other Assets
Less: Amortization
Total Intangibles 190,952.40 143,214.30 95,476.20 47,738.10 -

TOTAL ASSETS 4,695,942.23 6,104,578.76 8,244,647.81 10,199,118.13 12,896,435.13

LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities
Rent Payable 63,110.26 67,843.54 72,931.80 78,401.69 84,281.81
Utilities Payable 26,497.94 27,027.90 27,568.46 28,119.83 28,682.22
Interest Payable - - - - -
VAT Output Tax Payable 76,249.71 81,369.38 95,435.29 97,560.59 110,562.11
Income Tax Payable 570,892.49 662,126.76 922,400.35 949,991.71 1,192,916.70
Dividends Payable 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Total Current Liabilities 836,750.40 938,367.58 1,218,335.90 1,254,073.82 1,516,442.84

Long-term Liabilities
Long-term loan - - - - -

TOTAL LIABILITIES 836,750.40 938,367.58 1,218,335.90 1,254,073.82 1,516,442.84

Stockholder's Equity
Capital Stock (P10 par value) 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00
Retained Earnings 2,959,191.83 4,266,211.18 6,126,311.92 8,045,044.31 10,479,992.29

TOTAL STOCKHOLDER'S EQUITY 3,859,191.83 5,166,211.18 7,026,311.92 8,945,044.31 11,379,992.29

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 4,695,942.23 6,104,578.76 8,244,647.82 10,199,118.13 12,896,435.13
Appendix 3
Statement of Cash Flows

MAGNUM INCORPORATED
Pro-forma Statement of Cash Flows
For the period from Year 1 to Year 5
Year 1 Year 2 Year 3 Year 4 Year 5

Cash Flows from Operating Activities


Net Income 259,888.75 50,650.84 280,821.10 443,034.16 811,650.46
Increase (Decrease) in Depreciation - Fixed Assets 134,029.41 134,029.41 124,029.41 134,029.41 124,029.41
Increase (Decrease) in Depreciation - Leasehold Improvements 47,738.10 47,738.10 47,738.10 47,738.10 47,738.10
Increase (Decrease) in Amortization - Amortization 2,335.20 2,335.20 2,335.20 2,335.20 2,335.20
Increase (Decrease) in Inventory (824,799.95) 688,281.55 (531,542.55) 457,119.71 (255,030.24)
Increase (Decrease) in Supplies On Hand 17,242.40 - - - -
Increase (Decrease) in Prepaid Expense 482,404.80 - - - -
Increase (Decrease) in Rent Payable 43,960.00 3,297.00 3,544.27 3,810.10 4,095.85
Increase (Decrease) in Utilities Payable 24,000.00 480.00 489.60 499.39 509.38
Increase (Decrease) in Interest Payable 27,935.50 (0.00) - 0.00 -
Increase (Decrease) in Dividends Payable 100,000.00
Increase (Decrease) in VAT Output Tax Payable 49,010.40 96.15 5,772.89 7,590.60 6,055.66
Increase (Decrease) in Income Tax Payable 122,300.59 (98,464.90) 108,315.42 76,335.55 173,466.50
Net Cash Provided by Operating Activities 386,045.20 828,443.35 41,503.43 1,172,492.22 1,014,850.32

Cash Flows from Investing and Financing Activities


Acquisition of Office Assets - - - - 1,200.00
Acquisition of Store Assets - 10,000.00 (10,000.00) 10,000.00 (8,800.00)
Acquisition of Pland and Plant Assets - - - - 10,700.00
Increase (Decrease) in Long-term Loan - (2,095,123.95)
Dividends Paid - - - - -
Net Cash Provided by Investing and Financing Activities - 10,000.00 (10,000.00) 10,000.00 (2,092,023.95)

Increase (Decrease) in Cash 386,045.20 838,443.35 31,503.43 1,182,492.22 (1,077,173.63)

Add: Cash - Beginning 102,089.74 488,134.94 1,326,578.29 1,358,081.73 2,540,573.94

Cash Balance - End 488,134.94 1,326,578.29 1,358,081.73 2,540,573.94 1,463,400.32


Appendix 3
Statement of Cash Flows

MAGNUM INCORPORATED
Pro-forma Statement of Cash Flows
For the period from Year 6 to Year 10
Year 6 Year 7 Year 8 Year 9 Year 10

Cash Flow from Operating Activities


Net Income 1,113,146.54 1,307,019.35 1,860,100.74 1,918,732.39 2,434,947.98
Increase (Decrease) in Depreciation - Fixed Assets 120,929.41 124,029.41 134,029.41 124,029.41 140,029.42
Increase (Decrease) in Depreciation - Leasehold Improvements 47,738.10 47,738.10 47,738.10 47,738.10 47,738.10
Increase (Decrease) in Amortization - Amortization - -
Increase (Decrease) in Inventory 297,437.69 (163,275.29) 331,029.18 (183,143.27) 171,856.73
Increase (Decrease) in Supplies On Hand - - - - -
Increase (Decrease) in Prepaid Expense - - - - -
Increase (Decrease) in Rent Payable 4,403.04 4,733.28 5,088.26 5,469.89 5,880.12
Increase (Decrease) in Utilities Payable 519.57 529.96 540.56 551.37 562.39
Increase (Decrease) in Interest Payable (27,935.50) - - - -
Increase (Decrease) in Dividends Payable 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Increase (Decrease) in VAT Output Tax Payable 7,724.01 5,119.66 14,065.91 2,125.30 13,001.52
Increase (Decrease) in Income Tax Payable 188,939.33 91,234.27 260,273.59 27,591.36 242,924.99
Net Cash Flow Provided by Operating Activities 1,852,902.19 1,517,128.74 2,752,865.75 2,043,094.55 3,156,941.25

Cash Flow from Financing and Investing Activities


Acquisition of Office Assets (1,200.00) - - - -
Acquisition of Store Assets 8,800.00 (10,000.00) 10,000.00 (10,000.00) 10,000.00
Acquisition of Pland and Plant Assets (10,700.00) - - - -
Increase (Decrease) in Long-term Loan -
Dividends Paid (100,000.00) (100,000.00) (100,000.00) (100,000.00) (100,000.00)
Net Cash Provided by Financing and Investing Activities (103,100.00) (110,000.00) (90,000.00) (110,000.00) (90,000.00)

Increase (Decrease) in Cash 1,749,802.19 1,407,128.74 2,662,865.75 1,933,094.55 3,066,941.25

1,463,400.32 3,213,202.51 4,620,331.25 7,283,197.00 9,216,291.55

Cash Balance End 3,213,202.51 4,620,331.25 7,283,197.00 9,216,291.55 12,283,232.80 43,793,024.32


Appendix 3
Statement of Cash Flows
Appendix 4
Retained Earnings Schedule

MAGNUM INCORPORATED
Pro-forma Statement of Retained Earnings
For the period from Year 1 to Year 10
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Retained Earnings - Beginning - 259,888.75 310,539.58 591,360.68 1,034,394.83 1,846,045.29 2,959,191.83 4,266,211.18 6,126,311.92 8,045,044.31

Less:
Net Income for the Year 259,888.75 50,650.84 280,821.10 443,034.16 811,650.46 1,213,146.54 1,407,019.35 1,960,100.74 1,918,732.39 2,534,947.98
Dividends Declared During the Year - - - - - 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

Retained Earnings - Ending 259,888.75 310,539.58 591,360.68 1,034,394.82 1,846,045.29 2,959,191.83 4,266,211.18 6,126,311.92 8,045,044.31 10,479,992.29
Appendix 4
Retained Earnings Schedule
Appendix 4
Retained Earnings Schedule

137029.41
Appendix 4
Schedule of Depreciation of Fixed Assets

Magnum Inc.
Schedule of Depreciation of Fixed Assets
Years 1-3
Year 1 Year 2 Year 3
Cost Useful Life Dep'n Expense Accu. Dep'n Carrying ValueDep'n Expense Accu. Dep'n Carrying ValueDep'n Expense Accu. Dep'n Carrying Value
Office Assets
Equipment
4-in-1 office machine 15,000.00 10 1,500.00 1,500.00 13,500.00 1,500.00 3,000.00 12,000.00 1,500.00 4,500.00 10,500.00
Personal Computer 50,000.00 10 5,000.00 5,000.00 45,000.00 5,000.00 10,000.00 40,000.00 5,000.00 15,000.00 35,000.00
Fire Extinguisher 1,200.00 5 240.00 240.00 960.00 240.00 480.00 720.00 240.00 720.00 480.00
Furnitures and Fixtures
Chairs,Tables (set of 8) 21,000.00 10 2,100.00 2,100.00 18,900.00 2,100.00 4,200.00 16,800.00 2,100.00 6,300.00 14,700.00
Filing Cabinets 4,500.00 10 450.00 450.00 4,050.00 450.00 900.00 3,600.00 450.00 1,350.00 3,150.00
Store Assets
Equipment
Point of Sale System 17,000.00 10 1,700.00 1,700.00 15,300.00 1,700.00 3,400.00 13,600.00 1,700.00 5,100.00 11,900.00
Display Materials 10,000.00 2 5,000.00 5,000.00 5,000.00 5,000.00 10,000.00 - 5,000.00 5,000.00 5,000.00
Fire Extinguisher 1,200.00 5 240.00 240.00 960.00 240.00 480.00 720.00
Plant Assets
Equipment
Small UV Exposure Unit 20x24 13,037.47 10 1,303.75 1,303.75 11,733.72 1,303.75 2,607.49 10,429.98 1,303.75 3,911.24 9,126.23
4 Color 4 Station Manual Press 108,385.00 15 7,225.67 7,225.67 101,159.33 7,225.67 14,451.33 93,933.67 7,225.67 21,677.00 86,708.00
Fire Extinguisher 1,200.00 5 240.00 240.00 960.00 240.00 480.00 720.00 240.00 720.00 480.00
Paint Curing Machine 5,500.00 5 1,100.00 1,100.00 4,400.00 1,100.00 2,200.00 3,300.00 1,100.00 3,300.00 2,200.00
Furniture and Fixtures
Storage Cabinets 4,000.00 5 800.00 800.00 3,200.00 800.00 1,600.00 2,400.00 800.00 2,400.00 1,600.00
Long Wood Tables 1,500.00 10 150.00 150.00 1,350.00 150.00 300.00 1,200.00 150.00 450.00 1,050.00
Plant Building 250,000.00 10 25,000.00 25,000.00 225,000.00 25,000.00 50,000.00 200,000.00 25,000.00 75,000.00 175,000.00
Plant Improvements 19,800.00 10 1,980.00 1,980.00 17,820.00 1,980.00 3,960.00 15,840.00 1,980.00 5,940.00 13,860.00
Vehicle 800,000.00 10 80,000.00 80,000.00 720,000.00 80,000.00 160,000.00 640,000.00 80,000.00 240,000.00 560,000.00
Intangibles:
Leasehold Improvements 477,381.00 10 47,738.10 47,738.10 429,642.90 47,738.10 95,476.20 381,904.80 47,738.10 143,214.30 334,166.70
Total Accumulated Depreciation-Fixed Assets 134,029.41 268,058.83 392,088.24
Total Depreciation Expense 134,029.41 134,029.41 134,029.41
Appendix 4
Schedule of Depreciation of Fixed Assets

Magnum Inc.
Schedule of Depreciation of Fixed Assets
Years 4-6
Year 4 Year 5 Year 6
Cost Useful Life Dep'n Expense Accu. Dep'n Carrying ValueDep'n Expense Accu. Dep'n Carrying ValueDep'n Expense Accu. Dep'n Carrying Value
Office Assets
Equipment
4-in-1 office machine 15,000.00 10 1,500.00 6,000.00 9,000.00 1,500.00 1,500.00 13,500.00 1,500.00 9,000.00 6,000.00
Personal Computer 50,000.00 10 5,000.00 20,000.00 30,000.00 5,000.00 5,000.00 45,000.00 5,000.00 30,000.00 20,000.00
Fire Extinguisher 1,200.00 5 240.00 960.00 240.00 240.00 240.00 960.00 240.00 240.00 960.00
Furnitures and Fixtures
Chairs,Tables (set of 8) 21,000.00 10 2,100.00 8,400.00 12,600.00 2,100.00 2,100.00 18,900.00 2,100.00 12,600.00 8,400.00
Filing Cabinets 4,500.00 10 450.00 1,800.00 2,700.00 450.00 450.00 4,050.00 450.00 2,700.00 1,800.00
Store Assets
Equipment
Point of Sale System 17,000.00 10 1,700.00 6,800.00 10,200.00 1,700.00 8,500.00 8,500.00 1,700.00 10,200.00 6,800.00
Display Materials 10,000.00 2 5,000.00 10,000.00 - 5,000.00 5,000.00 5,000.00 5,000.00 10,000.00 -
Fire Extinguisher 1,200.00 5
Plant Assets
Equipment
Small UV Exposure Unit 20x24 13,037.47 10 1,303.75 5,214.99 7,822.48 1,303.75 6,518.74 6,518.74 1,303.75 7,822.48 5,214.99
4 Color 4 Station Manual Press 108,385.00 15 7,225.67 28,902.67 79,482.33 7,225.67 36,128.33 72,256.67 7,225.67 43,354.00 65,031.00
Fire Extinguisher 1,200.00 5 240.00 960.00 240.00 240.00 1,200.00 - 240.00 240.00 960.00
Paint Curing Machine 5,500.00 5 1,100.00 4,400.00 1,100.00 1,100.00 5,500.00 - 1,100.00 1,100.00 4,400.00
Furniture and Fixtures
Storage Cabinets 4,000.00 5 800.00 3,200.00 800.00 800.00 4,000.00 - 800.00 800.00 3,200.00
Long Wood Tables 1,500.00 10 150.00 600.00 900.00 150.00 750.00 750.00 150.00 900.00 600.00
Plant Building 250,000.00 10 25,000.00 100,000.00 150,000.00 25,000.00 125,000.00 125,000.00 25,000.00 150,000.00 100,000.00
Plant Improvements 19,800.00 10 1,980.00 7,920.00 11,880.00 1,980.00 9,900.00 9,900.00 1,980.00 11,880.00 7,920.00
Vehicle 800,000.00 10 80,000.00 320,000.00 480,000.00 80,000.00 400,000.00 400,000.00 80,000.00 480,000.00 320,000.00
Intangibles:
Leasehold Improvements 477,381.00 10 47,738.10 190,952.40 286,428.60 47,738.10 238,690.50 238,690.50 47,738.10 286,428.60 190,952.40
Total Accumulated Depreciation-Fixed Assets 526,117.65 650,147.07 771,076.48
Total Depreciation Expense 134,029.41 134,029.41 134,029.41
Appendix 4
Schedule of Depreciation of Fixed Assets

Magnum Inc.
Schedule of Depreciation of Fixed Assets
Years 7-10
Year 7 Year 8 Year 9 Year 10
Cost Useful Life Dep'n Expense Accu. Dep'n Carrying ValueDep'n Expense Accu. Dep'n Carrying ValueDep'n Expense Accu. Dep'n Carrying ValueDep'n Expense Accu. Dep'n Carrying Value
Office Assets
Equipment
4-in-1 office machine 15,000.00 10 1,500.00 10,500.00 4,500.00 1,500.00 12,000.00 3,000.00 1,500.00 13,500.00 1,500.00 1,500.00 15,000.00 -
Personal Computer 50,000.00 10 5,000.00 35,000.00 15,000.00 5,000.00 40,000.00 10,000.00 5,000.00 45,000.00 5,000.00 5,000.00 50,000.00 -
Fire Extinguisher 1,200.00 5 240.00 480.00 720.00 240.00 720.00 480.00 240.00 960.00 240.00 240.00 1,200.00 -
Furnitures and Fixtures
Chairs,Tables (set of 8) 21,000.00 10 2,100.00 14,700.00 6,300.00 2,100.00 16,800.00 4,200.00 2,100.00 18,900.00 2,100.00 2,100.00 21,000.00 -
Filing Cabinets 4,500.00 10 450.00 3,150.00 1,350.00 450.00 3,600.00 900.00 450.00 4,050.00 450.00 450.00 4,500.00 -
Store Assets
Equipment
Point of Sale System 17,000.00 10 1,700.00 11,900.00 5,100.00 1,700.00 13,600.00 3,400.00 1,700.00 15,300.00 1,700.00 1,700.00 17,000.00 -
Display Materials 10,000.00 2 5,000.00 5,000.00 5,000.00 5,000.00 10,000.00 - 5,000.00 5,000.00 5,000.00 5,000.00 10,000.00 -
Fire Extinguisher 1,200.00 5 6,000.00 6,000.00 -
Plant Assets
Equipment
Small UV Exposure Unit 20x24 13,037.47 10 1,303.75 9,126.23 3,911.24 1,303.75 10,429.98 2,607.49 1,303.75 11,733.72 1,303.75 1,303.75 13,037.47 -
4 Color 4 Station Manual Press 108,385.00 15 7,225.67 50,579.67 57,805.33 7,225.67 57,805.33 50,579.67 7,225.67 65,031.00 43,354.00 7,225.67 72,256.67 36,128.33
Fire Extinguisher 1,200.00 5 240.00 480.00 720.00 240.00 720.00 480.00 240.00 960.00 240.00 240.00 1,200.00 -
Paint Curing Machine 5,500.00 5 1,100.00 2,200.00 3,300.00 1,100.00 3,300.00 2,200.00 1,100.00 4,400.00 1,100.00 1,100.00 5,500.00 -
Furniture and Fixtures
Storage Cabinets 4,000.00 5 800.00 1,600.00 2,400.00 800.00 2,400.00 1,600.00 800.00 3,200.00 800.00 800.00 4,000.00 -
Long Wood Tables 1,500.00 10 150.00 1,050.00 450.00 150.00 1,200.00 300.00 150.00 1,350.00 150.00 150.00 1,500.00 -
Plant Building 250,000.00 10 25,000.00 175,000.00 75,000.00 25,000.00 200,000.00 50,000.00 25,000.00 225,000.00 25,000.00 25,000.00 250,000.00 -
Plant Improvements 19,800.00 10 1,980.00 13,860.00 5,940.00 1,980.00 15,840.00 3,960.00 1,980.00 17,820.00 1,980.00 1,980.00 19,800.00 -
Vehicle 800,000.00 10 80,000.00 560,000.00 240,000.00 80,000.00 640,000.00 160,000.00 80,000.00 720,000.00 80,000.00 80,000.00 800,000.00 -
Intangibles:
Leasehold Improvements 477,381.00 10 47,738.10 334,166.70 143,214.30 47,738.10 381,904.80 95,476.20 47,738.10 429,642.90 47,738.10 47,738.10 477,381.00 -
Total Accumulated Depreciation-Fixed Assets 895,105.90 1,029,135.31 1,153,164.72 1,293,194.14
Total Depreciation Expense 134,029.41 134,029.41 134,029.41 134,029.41
Appendix 5
Schedule of Salary and Benefits

MAGNUM INC.
SALARY AND BENEFITS SCHEDULE
YEAR 1 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY TOTAL PAYABLE
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL AT YEAR END
General/Operations Manager 1 25,000.00 300,000.00 300,000.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 25,000.00 25,000.00
Sales and Marketing Manager 1 15,000.00 180,000.00 180,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,000.00 15,000.00
Finance Manager 1 15,000.00 180,000.00 180,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,000.00 15,000.00
Production/Purchasing Manager 1 15,000.00 180,000.00 180,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,000.00 15,000.00
Human Resource Manager 1 15,000.00 180,000.00 180,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,000.00 15,000.00
Accountant 1 9,000.00 108,000.00 108,000.00 556.00 6,672.00 6,672.00 112.50 1,350.00 1,350.00 9,000.00 9,000.00
Cashier 1 7,000.00 84,000.00 84,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 7,000.00 7,000.00
Sales Personnel 2 7,000.00 84,000.00 168,000.00 434.70 5,216.40 10,432.80 87.50 1,050.00 2,100.00 7,000.00 14,000.00
Production Staff 3 6,000.00 72,000.00 216,000.00 374.00 4,488.00 13,464.00 75.00 900.00 2,700.00 6,000.00 18,000.00
Design Staff 1 7,000.00 84,000.00 84,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 7,000.00 7,000.00

PAYABLE AT YEAR END 1,680,000.00 96,201.60 21,000.00 140,000.00 1,937,201.60

YEAR 2 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 25,000.00 300,000.00 300,000.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 25,000.00 25,000.00
Sales and Marketing Manager 1 15,000.00 180,000.00 180,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,000.00 15,000.00
Finance Manager 1 15,000.00 180,000.00 180,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,000.00 15,000.00
Production/Purchasing Manager 1 15,000.00 180,000.00 180,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,000.00 15,000.00
Human Resource Manager 1 15,000.00 180,000.00 180,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,000.00 15,000.00
Accountant 1 9,000.00 108,000.00 108,000.00 556.00 6,672.00 6,672.00 112.50 1,350.00 1,350.00 9,000.00 9,000.00
Cashier 1 7,000.00 84,000.00 84,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 7,000.00 7,000.00
Sales Personnel 2 7,000.00 84,000.00 168,000.00 434.70 5,216.40 10,432.80 87.50 1,050.00 2,100.00 7,000.00 14,000.00
Production Staff 3 6,000.00 72,000.00 216,000.00 374.00 4,488.00 13,464.00 75.00 900.00 2,700.00 6,000.00 18,000.00
Design Staff 1 7,000.00 84,000.00 84,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 7,000.00 7,000.00

PAYABLE AT YEAR END 1,680,000.00 96,201.60 21,000.00 140,000.00 1,937,201.60

YEAR 3 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 25,750.00 309,000.00 309,000.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 25,750.00 25,750.00
Sales and Marketing Manager 1 15,450.00 185,400.00 185,400.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,450.00 15,450.00
Finance Manager 1 15,450.00 185,400.00 185,400.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,450.00 15,450.00
Production/Purchasing Manager 1 15,450.00 185,400.00 185,400.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,450.00 15,450.00 214,140.00
Human Resource Manager 1 15,450.00 185,400.00 185,400.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,450.00 15,450.00 214,140.00
Accountant 1 9,270.00 111,240.00 111,240.00 586.30 7,035.60 7,035.60 112.50 1,350.00 1,350.00 9,270.00 9,270.00 128,895.60
Cashier 1 7,210.00 86,520.00 86,520.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 7,210.00 7,210.00 99,996.40
Sales Personnel 2 7,210.00 86,520.00 173,040.00 434.70 5,216.40 10,432.80 87.50 1,050.00 2,100.00 7,210.00 14,420.00 199,992.80
Production Staff 3 6,180.00 74,160.00 222,480.00 374.00 4,488.00 13,464.00 75.00 900.00 2,700.00 6,180.00 18,540.00 257,184.00
Design Staff 1 7,210.00 86,520.00 86,520.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 7,210.00 7,210.00

PAYABLE AT YEAR END 1,730,400.00 96,565.20 21,000.00 144,200.00 1,992,165.20

YEAR 4 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 25,750.00 309,000.00 309,000.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 25,750.00 25,750.00
Sales and Marketing Manager 1 15,450.00 185,400.00 185,400.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,450.00 15,450.00
Finance Manager 1 15,450.00 185,400.00 185,400.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,450.00 15,450.00
Production/Purchasing Manager 1 15,450.00 185,400.00 185,400.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,450.00 15,450.00
Human Resource Manager 1 15,450.00 185,400.00 185,400.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,450.00 15,450.00
Accountant 1 9,270.00 111,240.00 111,240.00 586.30 7,035.60 7,035.60 112.50 1,350.00 1,350.00 9,270.00 9,270.00
Cashier 1 7,210.00 86,520.00 86,520.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 7,210.00 7,210.00
Sales Personnel 2 7,210.00 86,520.00 173,040.00 434.70 5,216.40 10,432.80 87.50 1,050.00 2,100.00 7,210.00 14,420.00
Production Staff 3 6,180.00 74,160.00 222,480.00 374.00 4,488.00 13,464.00 75.00 900.00 2,700.00 6,180.00 18,540.00
Design Staff 1 7,210.00 86,520.00 86,520.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 7,210.00 7,210.00

PAYABLE AT YEAR END 1,730,400.00 96,565.20 21,000.00 144,200.00 1,992,165.20

YEAR 5 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 26,522.50 318,270.00 318,270.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 26,522.50 26,522.50
Sales and Marketing Manager 1 15,913.50 190,962.00 190,962.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,913.50 15,913.50
Finance Manager 1 15,913.50 190,962.00 190,962.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,913.50 15,913.50
Production/Purchasing Manager 1 15,913.50 190,962.00 190,962.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,913.50 15,913.50 220,165.50
Human Resource Manager 1 15,913.50 190,962.00 190,962.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,913.50 15,913.50 220,165.50
Accountant 1 9,548.10 114,577.20 114,577.20 586.30 7,035.60 7,035.60 112.50 1,350.00 1,350.00 9,548.10 9,548.10 132,510.90
Cashier 1 7,426.30 89,115.60 89,115.60 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 7,426.30 7,426.30 103,171.90
Sales Personnel 2 7,426.30 89,115.60 178,231.20 465.00 5,580.00 11,160.00 87.50 1,050.00 2,100.00 7,426.30 14,852.60 206,343.80
Production Staff 3 6,365.40 76,384.80 229,154.40 404.30 4,851.60 14,554.80 75.00 900.00 2,700.00 6,365.40 19,096.20 265,505.40
Design Staff 1 7,426.30 89,115.60 89,115.60 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 7,426.30 7,426.30

1,782,312.00 99,110.40 21,000.00 148,526.00 2,050,948.40


PAYABLE AT YEAR END

YEAR 6 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 26,522.50 318,270.00 318,270.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 26,522.50 26,522.50
Sales and Marketing Manager 1 15,913.50 190,962.00 190,962.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,913.50 15,913.50
Finance Manager 1 15,913.50 190,962.00 190,962.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,913.50 15,913.50
Production/Purchasing Manager 1 15,913.50 190,962.00 190,962.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,913.50 15,913.50
Human Resource Manager 1 15,913.50 190,962.00 190,962.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 15,913.50 15,913.50
Accountant 1 9,548.10 114,577.20 114,577.20 586.30 7,035.60 7,035.60 112.50 1,350.00 1,350.00 9,548.10 9,548.10
Cashier 1 7,426.30 89,115.60 89,115.60 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 7,426.30 7,426.30
Sales Personnel 2 7,426.30 89,115.60 178,231.20 465.00 5,580.00 11,160.00 87.50 1,050.00 2,100.00 7,426.30 14,852.60
Production Staff 3 6,365.40 76,384.80 229,154.40 404.30 4,851.60 14,554.80 75.00 900.00 2,700.00 6,365.40 19,096.20
Design Staff 1 7,426.30 89,115.60 89,115.60 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 7,426.30 7,426.30

PAYABLE AT YEAR END 1,782,312.00 99,110.40 21,000.00 148,526.00 2,050,948.40

YEAR 7 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 27,318.18 327,818.10 327,818.10 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 27,318.18 27,318.18
Sales and Marketing Manager 1 16,390.91 196,690.86 196,690.86 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,390.91 16,390.91
Finance Manager 1 16,390.91 196,690.86 196,690.86 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,390.91 16,390.91
Production/Purchasing Manager 1 16,390.91 196,690.86 196,690.86 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,390.91 16,390.91 226,521.77
Human Resource Manager 1 16,390.91 196,690.86 196,690.86 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,390.91 16,390.91 226,521.77
Accountant 1 9,834.54 118,014.52 118,014.52 616.70 7,400.40 7,400.40 112.50 1,350.00 1,350.00 9,834.54 9,834.54 136,599.46
Cashier 1 7,649.09 91,789.07 91,789.07 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 7,649.09 7,649.09 106,068.16
Sales Personnel 2 7,649.09 91,789.07 183,578.14 465.00 5,580.00 11,160.00 87.50 1,050.00 2,100.00 7,649.09 15,298.18 212,136.31
Production Staff 3 6,556.36 78,676.34 236,029.03 404.30 4,851.60 14,554.80 75.00 900.00 2,700.00 6,556.36 19,669.09 272,952.92
Design Staff 1 7,649.09 91,789.07 91,789.07 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 7,649.09 7,649.09

PAYABLE AT YEAR END 1,835,781.36 99,475.20 21,600.00 152,981.78 2,109,838.34

YEAR 8 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 27,318.18 327,818.10 327,818.10 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 27,318.18 27,318.18
Sales and Marketing Manager 1 16,390.91 196,690.86 196,690.86 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,390.91 16,390.91
Finance Manager 1 16,390.91 196,690.86 196,690.86 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,390.91 16,390.91
Production/Purchasing Manager 1 16,390.91 196,690.86 196,690.86 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,390.91 16,390.91
Human Resource Manager 1 16,390.91 196,690.86 196,690.86 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,390.91 16,390.91
Accountant 1 9,834.54 118,014.52 118,014.52 616.70 7,400.40 7,400.40 112.50 1,350.00 1,350.00 9,834.54 9,834.54
Cashier 1 7,649.09 91,789.07 91,789.07 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 7,649.09 7,649.09
Sales Personnel 2 7,649.09 91,789.07 183,578.14 465.00 5,580.00 11,160.00 87.50 1,050.00 2,100.00 7,649.09 15,298.18
Production Staff 3 6,556.36 78,676.34 236,029.03 404.30 4,851.60 14,554.80 75.00 900.00 2,700.00 6,556.36 19,669.09
Design Staff 1 7,649.09 91,789.07 91,789.07 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 7,649.09 7,649.09

PAYABLE AT YEAR END 1,835,781.36 99,475.20 21,600.00 152,981.78 2,109,838.34

YEAR 9 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 28,137.72 337,652.64 337,652.64 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 28,137.72 28,137.72
Sales and Marketing Manager 1 16,882.63 202,591.59 202,591.59 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,882.63 16,882.63
Finance Manager 1 16,882.63 202,591.59 202,591.59 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,882.63 16,882.63
Production/Purchasing Manager 1 16,882.63 202,591.59 202,591.59 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,882.63 16,882.63
Human Resource Manager 1 16,882.63 202,591.59 202,591.59 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,882.63 16,882.63
Accountant 1 10,129.58 121,554.95 121,554.95 616.70 7,400.40 7,400.40 125.00 1,500.00 1,500.00 10,129.58 10,129.58
Cashier 1 7,878.56 94,542.74 94,542.74 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 7,878.56 7,878.56
Sales Personnel 2 7,878.56 94,542.74 189,085.48 495.30 5,943.60 11,887.20 87.50 1,050.00 2,100.00 7,878.56 15,757.12
Production Staff 3 6,753.05 81,036.63 243,109.90 434.70 5,216.40 15,649.20 75.00 900.00 2,700.00 6,753.05 20,259.16
Design Staff 1 7,878.56 94,542.74 94,542.74 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 7,878.56 7,878.56

PAYABLE AT YEAR END 1,890,854.80 102,024.00 21,750.00 157,571.23 2,172,200.03

YEAR 10 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEES MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
General/Operations Manager 1 28,137.72 337,652.64 337,652.64 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 28,137.72 28,137.72
Sales and Marketing Manager 1 16,882.63 202,591.59 202,591.59 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,882.63 16,882.63
Finance Manager 1 16,882.63 202,591.59 202,591.59 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,882.63 16,882.63
Production/Purchasing Manager 1 16,882.63 202,591.59 202,591.59 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,882.63 16,882.63 232,914.22
Human Resource Manager 1 16,882.63 202,591.59 202,591.59 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 16,882.63 16,882.63 232,914.22
Accountant 1 10,129.58 121,554.95 121,554.95 616.70 7,400.40 7,400.40 125.00 1,500.00 1,500.00 10,129.58 10,129.58 140,584.93
Cashier 1 7,878.56 94,542.74 94,542.74 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 7,878.56 7,878.56 109,414.90
Sales Personnel 2 7,878.56 94,542.74 189,085.48 495.30 5,943.60 11,887.20 87.50 1,050.00 2,100.00 7,878.56 15,757.12 218,829.80
Production Staff 3 6,753.05 81,036.63 243,109.90 434.70 5,216.40 15,649.20 75.00 900.00 2,700.00 6,753.05 20,259.16 281,718.26
Design Staff 1 7,878.56 94,542.74 94,542.74 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 7,878.56 7,878.56

PAYABLE AT YEAR END 1,890,854.80 102,024.00 21,750.00 157,571.23 2,172,200.03


Appendix 6
Yearly Miscellaneous Expense Schedule

Magnum Inc.
Yearly Miscellaneous Expenses
For Years 1-10
Legal Fee- Business Permit Initial Costs
Mayor's Permit 200.00
City Tax 3,000.00
Garbage Fee 2,600.00
Sanitary Fee 450.00
Building Inspection Fee 50.00
Electrical Inspection Fee 20.00
Plumbing Inspection Fee 7.00
Signboard 50.00
Fire Inspection Fee 200.00
Plate/Sticker 250.00
Zoning Fee 545.00
Total Business Permit Cost 7,372.00
Appendix 7
Schedule of Supplies Expense

Magnum Inc.
Initial Supplies Expense

Supplies Expense Qty. Unit Unit Cost Total Cost


Office Supplies
Bond Paper 5 reams 156.25 781.25
Pens 20 pcs. 6.00 120.00
Tape 5 rolls 17.50 87.50
Stapler 3 pcs. 80.00 240.00
Staple Wire 5 boxes 16.75 83.75
Paper clips 2 boxes 30.75 61.50
Printer Ink 3 boxes 3000.00 9,000.00
Invoice Booklets 12 pads 24.50 294.00
Scissors 3 pcs. 47.50 142.50
Memo Pads 12 pcs. 14.50 174.00
Total Office Supplies Expense 10,984.50

Cleaning Supplies
Trash Cans 6 pcs. 100.00 600.00
Door Mats 10 pcs. 40.00 400.00
Garbage Bags 20 10 pcs 48.45 969.00
Bathroom Deodorizer 6 pcs. 33.15 198.90
Wet Mop 5 pcs. 286.00 1,430.00
Dry Mop 5 pcs. 286.00 1,430.00
Liquid Hand Soap 12 bottles 60.00 720.00
Paper Towel 24 packs 20.00 480.00
Tissue Paper 10 dz 60.00 600.00
Pail 5 pcs. 51.25 256.25
Broom 5 pcs. 52.50 262.50
Dust Pans 5 pcs. 30.00 150.00
Total Cleaning Supplies Expenses 7,496.65
Total Initial Supplies Expenses 18,481.15
Appendix 7
Schedule of Supplies Expense

Magnum Inc.
Yearly Supplies Expense
Years 1-10
Supplies Expense Qty. Unit Unit Cost Total Cost
Office Supplies
Bond Paper 5 reams 156.25 781.25
Pens 20 pcs. 6.00 120.00
Tape 5 rolls 17.50 87.50
Staple Wire 5 boxes 16.75 83.75
Paper clips 2 boxes 30.75 61.50
Printer Ink 3 boxes 3000.00 9,000.00
Invoice Booklets 12 pads 24.50 294.00
Memo Pads 12 pcs. 14.50 174.00
Total Office Supplies Expense 10,602.00

Cleaning Supplies
Door Mats 10 pcs. 40.00 400.00
Garbage Bags 20 10 pcs 48.45 969.00
Bathroom Deodorizer 6 pcs. 33.15 198.90
Wet Mop 5 pcs. 286.00 1,430.00
Dry Mop 5 pcs. 286.00 1,430.00
Liquid Hand Soap 12 bottles 60.00 720.00
Paper Towel 24 packs 20.00 480.00
Tissue Paper 10 dz 60.00 600.00
Broom 5 pcs. 52.50 262.50
Dust Pans 5 pcs. 30.00 150.00
Total Cleaning Supplies Expenses 6,640.40
Total Supplies Expenses 17,242.40
Appendix 8
Schedule of Rental Expenses

Magnum Inc.
Schedule of Rental Payments
Year 1-10
Year 1 2 3 4 5 6 7 8 9 10
Basic Rent (monthly) 43,960.00 47,257.00 50,801.28 54,611.37 58,707.22 63,110.27 67,843.54 72,931.80 78,401.69 84,281.81
Total Annual Rental Expense 527,520.00 567,084.00 609,615.30 655,336.45 704,486.68 757,323.18 814,122.42 875,181.60 940,820.22 1,011,381.74

*inflation 7.50%
Appendix 9
Schedule of Utilities Expense

MAGNUM INC.
Schedule of Utilities Expense
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Utilities Expense
Electricity 180,000.00 183,600.00 187,272.00 191,017.44 194,837.79 198,734.54 202,709.24 206,763.42 210,898.69
Water 48,000.00 48,960.00 49,939.20 50,937.98 51,956.74 52,995.88 54,055.80 55,136.91 56,239.65
Gasoline 42,000.00 42,840.00 43,696.80 44,570.74 45,462.15 46,371.39 47,298.82 48,244.80 49,209.69
Telephone 18,000.00 18,360.00 18,727.20 19,101.74 19,483.78 19,873.45 20,270.92 20,676.34 21,089.87
Total 288,000.00 293,760.00 299,635.20 305,627.90 311,740.46 317,975.27 324,334.78 330,821.47 337,437.90

Accrued expense at year end 24,000.00 24,480.00 24,969.60 25,468.99 25,978.37 26,497.94 27,027.90 27,568.46 28,119.83
Expense

escalation 1.02
Appendix 9
Schedule of Utilities Expense

MAGNUM INC.
Schedule of Utilities Expense
Year 10

215,116.66
57,364.44
50,193.89
21,511.67
344,186.66

28,682.22
Appendix 10
Sales Forecast

Magnum inc.
SALES FORECAST (YEAR 1-10)
YEAR Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Production Volume 30,983 26,505 31,896 32,267 36,412 37,395 40,352 44,248 45,245 49,032
Estimated Percentage of items sold (at regular price) 40% 42.00% 44.10% 46.31% 48.62% 51.05% 53.60% 56.28% 59.10% 62.05%
Sold units (at regular price) 12,393 11,132 14,066 14,941 17,704 19,091 21,630 24,905 26,739 30,426
Average Selling Price 350 350 350 350 350 350 350 350 350 350
Revenue From regular Sales 4,337,620.00 3,896,235.00 4,923,147.60 5,229,432.02 6,196,261.90 6,681,716.86 7,570,575.50 8,716,593.13 9,358,646.02 10,649,061.51
Unsold Items from Previous year 0 6,506 440 4,737 724 3,355 336 2,121 -288 1,011
Units Available for Discount Sale (50% discount) 18,590 21,879 18,270 22,063 19,433 21,659 19,058 21,465 18,218 19,617
Percentage sold (at discount price) 65% 68.25% 71.66% 75.25% 79.01% 82.96% 87.11% 91.46% 96.03% 101%
Sold units (at discount price) 12,083 14,933 13,093 16,601 15,354 17,968 16,601 19,632 17,495 19,781
Selling Price (at discount) 175 175 175 175 175 175 175 175 175 175
Revenue From Year-End Sale 2,114,589.75 2,613,212.48 2,291,244.49 2,905,226.58 2,686,862.52 3,144,429.14 2,905,122.70 3,435,562.94 3,061,671.99 3461660.17
Total Sales (in units) 24,477 26,065 27,159 31,543 33,057 37,059 38,231 44,536 44,234 50,207
Total Sales (in peso) 6,452,209.75 6,509,447.48 7,214,392.09 8,134,658.60 8,883,124.42 9,826,146.01 10,475,698.20 12,152,156.07 12,420,318.01 14,110,721.68
Appendix 11
Cost of Goods Sold Schedule

MAGNUM INC.
COST OF GOODS SOLD SCHEDULE (YEARS 1-5)
Year 1 Year 2 Year 3 Year 4 Year 5
cost/unit units sold total cost cost/unit units sold total cost cost/unit units sold total cost cost/unit units sold total cost cost/unit units sold total cost
CGS from Regular Sales 95.08 12,393 1,178,286 106.70 11,132 1,187,741 104.08 14,066 1,463,944 104.82 14,941 1,566,171 96.75 17,704 1,712,901
CGS from Discount Sales 12,083 14,933 13,093 16,601 15,354
sold items from last year - - - 95.08 6,506 618,600 106.70 440 46,973 104.08 4,737 493,011 104.82 724 75,941
sold items from present year 95.08 12,083 1,148,828 106.70 8,426 899,036 104.08 12,653 1,316,826 104.82 11,864 1,243,636 96.75 14,629 1,415,422
TOTAL COST OF GOODS SOLD 2,327,114.13 2,705,377.35 2,827,743.43 3,302,817.11 3,204,263.05
Appendix 11
Cost of Goods Sold Schedule

MAGNUM INC.
COST OF GOODS SOLD SCHEDULE (YEARS 6-10)
Year 6 Year 7 Year 8 Year 9 Year 10
cost/unit units sold total cost cost/unit units sold total cost cost/units units sold total cost cost/unit units sold total cost cost/unit units sold total cost
CGS from Regular Sales 97.58 19,091 1,862,951 98.93 21,630 2,139,774 98.19 24,905 2,445,499 99.72 26,739 2,666,460 100.07 30,426 3,044,677
CGS from Discount Sales 17,968 16,601 19,632 17,495 19,781
sold items from last year 96.75 3,355 324,601 97.58 336 32,809 98.93 2,121 209,829 98.19 -288 (28,314) 99.72 1,011 100,793
sold items from present year 97.58 14,613 1,426,031 98.93 16,264 1,608,968 98.19 17,511 1,719,461 99.72 17,784 1,773,413 100.07 18,770 1,878,305
TOTAL COST OF GOODS SOLD 3,613,582.34 3,781,551.76 4,374,788.59 4,411,560.11 5,023,775.53
Appendix 12
Product Costing Schedule

MAGNUM INC.
PRODUCT COSTING (Year 1-5)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
cost units produced per unit cost cost units produced per unit cost cost units produced per unit cost cost units produced per unit cost cost units produced per unit cost
DIRECT MATERIALS:
Cost of t-shirt 62.2 1 62.2 63.44 1 63.44 64.71 1 64.71 66.01 1 66.01 67.33 1 67.33
Cost of Paint 540 100 5.4 540 100 5.4 540 100 5.4 540 100 5.4 540 100 5.4
Total Per Unit Cost-DM 67.6 68.84 70.11 71.41 72.73

DIRECT LABOR
yearly salary and benefits of production staff 208,290.00 208,290.00 257,184.00 257,184.00 257,184.00
Annual Production 30,983 26,505 31,896 32,267 36,412
Total Per Unit Cost-DL 0.15 7.86 8.06 7.97 0.14

OVERHEAD
Photo emulsion 34,700.96 25,617.76 35,451.36 33,297.60 40,290.88
Table Adhesive 2,013.90 1,486.75 2,057.45 1,932.45 2,338.31
Thickener 7,435.92 5,489.52 7,596.72 7,135.20 8,633.76
Binder 3,253.22 2,401.67 3,323.57 3,121.65 3,777.27
Screen 58,093.13 42,886.88 59,349.38 55,743.75 67,451.25
Frame 44,925.35 33,165.85 45,896.85 43,108.50 52,162.30
Design Positive 30,983.00 22,873.00 31,653.00 29,730.00 35,974.00
Salary- Prod. / Purchasing Manager 250,164.00 250,164.00 214,140.00 214,140.00 220,165.50
Utilities Expense 288,000.00 293,760.00 299,635.20 305,627.90 311,740.46
Dep'n Expense-Plant 1,980.00 1,980.00 1,980.00 1,980.00 1,980.00
Dep'n Expense-Plant Assets & Vehicle 125,105.13 115,235.71 125,105.13 125,105.13 125,105.13
Total Overhead Cost 846,654.59 795,061.13 826,188.64 820,922.18 869,618.86
Yearly Production in Units 30,983 26,505 31,896 32,267 36,412
Total Per Unit Cost-OH 27.33 30.00 25.90 25.44 23.88

TOTAL PER UNIT COST 95.08 106.70 104.08 104.82 96.75


Appendix 12
Product Costing Schedule

MAGNUM INC.
PRODUCT COSTING (Year 6-10)
YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
cost units produced per unit cost cost units produced per unit cost cost units produced per unit cost cost units produced per unit cost cost units produced per unit cost
DIRECT MATERIALS:
Cost of t-shirt 68.67 1 68.67 70.75 1 70.75 71.45 1 71.45 72.88 1 72.88 74.33 1 74.33
Cost of Paint 540 100 5.4 540 100 5.4 540 100 5.4 540 100 5.4 540 100 5.4
Total Per Unit Cost-DM 74.07 76.15 76.85 78.28 79.73

DIRECT LABOR
yearly salary and benefits of production staff 257,184.00 272,952.92 272,952.92 281,718.26 281,718.26
Annual Production 37,395 40,352 44,248 45,245 49,032
Total Per Unit Cost-DL 0.15 0.15 0.16 0.16 0.17

OVERHEAD
Photo emulsion 39,915.68 44,975.84 48,370.56 50,774.08 54,426.40
Table Adhesive 2,316.54 2,610.21 2,807.22 2,946.71 3,158.68
Thickener 8,553.36 9,637.68 10,365.12 10,880.16 11,662.80
Binder 3,742.10 4,216.49 4,534.74 4,760.07 5,102.48
Screen 66,823.13 75,294.38 80,977.50 85,001.25 91,115.63
Frame 51,676.55 58,227.65 62,622.60 65,734.30 70,462.75
Design Positive 35,639.00 40,157.00 43,188.00 45,334.00 48,595.00
Salary- Prod. / Purchasing Manager 220,165.50 226,521.77 226,521.77 232,914.22 232,914.22
Utilities Expense 317,975.27 324,334.78 330,821.47 337,437.90 344,186.66
Dep'n Expense-Plant 1,980.00 1,980.00 1,980.00 1,980.00 1,980.00
Dep'n Expense-Plant Assets & Vehicle 125,105.13 125,105.13 125,105.13 125,105.13 125,105.13
Total Overhead Cost 873,892.24 913,060.90 937,294.11 962,867.82 988,709.73
Yearly Production in Units 37,395 40,352 44,248 45,245 49,032
Total Per Unit Cost-OH 23.37 22.63 21.18 21.28 20.16

TOTAL PER UNIT COST 97.58 98.93 98.19 99.72 100.07


Appendix 12
IRR Computation

Magnum, Incorporated
Computation of Internal Rate of Return

Year Year-End Cash Flow


0 (2,993,034.21)
1 386,045.20
2 828,443.35
3 41,503.43
4 1,172,492.22
5 1,014,850.32
6 1,852,902.19
7 1,517,128.74
8 2,752,865.75
9 2,043,094.55
10 3,156,941.25
IRR 29%
Appendix 13
NPV Computation

Magnum. Incorporated
Computation of Net Present Value

Magnum's Cost of Capital 20%

Year Year-End Cash Flow


0 (2,993,034.21)
1 386,045.20
2 828,443.35
3 41,503.43
4 1,172,492.22
5 1,014,850.32
6 1,852,902.19
7 1,517,128.74
8 2,752,865.75
9 2,043,094.55
10 3,156,941.25
NPV $1,491,273.39
Appendix 14
Payback Period

Magnum, Incorporated
Computation of Payback Period

Project Cost (2,993,034.21)


Cumulative Balance Year
Year Year- End Cash Flow (2,993,034.21)
1 386,045.20 (2,606,989.01) 1
2 828,443.35 (1,778,545.66) 1
3 41,503.43 (1,737,042.22) 1
4 1,172,492.22 (564,550.01) 1
5 1,014,850.32 0 -0.56
6 1,852,902.19
7 1,517,128.74 Total 4.56
8 2,752,865.75
9 2,043,094.55
10 3,156,941.25

Payback Period 4.56 years


Appendix 15
Financial Ratios

MAGNUM INC.
Financial Ratios
Years
1 2 3 4 5 6 7 8 9 10

Liquidity Ratios
Current Ratio 5.01 8.62 7.06 7.33 2.95 4.07 5.30 6.00 7.52 8.12
Quick Ratio 1.83 7.69 4.68 6.71 2.21 3.84 4.93 5.98 7.35 8.10

Activity Ratios
Inventory Turnover 5.34 5.36 6.64 7.13 8.85 10.60 13.80 23.02 38.23 40.90
Total Asset Turnover 1.83 1.87 1.86 1.85 2.61 2.09 1.72 1.47 1.22 1.09

Debt Ratios
Debt Ratio 0.67 0.65 0.62 0.56 0.19 0.18 0.15 0.15 0.12 0.12
Debt to Equity Ratio 2.04 1.87 1.60 1.28 0.24 0.22 0.18 0.17 0.14 0.13

Profitability Ratios
Gross Profit Margin 53.22% 47.72% 50.09% 48.68% 53.21% 52.51% 53.19% 53.29% 53.69% 53.80%
Operating Profit Margin 7.05% 1.36% 6.81% 9.53% 16.00% 18.16% 19.75% 23.72% 23.81% 26.56%
Net Profit Margin 4.03% 0.78% 3.89% 5.45% 9.14% 12.35% 13.43% 16.13% 15.39% 18.06%
EPS 2.89 0.56 3.12 4.92 9.02 13.48 15.63 21.78 21.32 28.17

Return on Assets 7.38% 1.46% 7.24% 10.05% 23.81% 25.83% 23.05% 23.77% 18.81% 19.66%
Return on Equity 8.68% 4.37% 23.20% 29.71% 41.96% 44.18% 36.46% 37.94% 27.31% 28.34%