1995 1996

Actual EVA
EVA Improvement Goal
EVA Target
EVA Interval
P&L
Income before Following items; 24,694.00
R&D Expense 10,673.00 12,487.00
2,134.60 2,497.40
2,134.60

R&D Amortization under EVA 2,134.60 4,632.00

Cumulative R&D Expense 10,673.00 23,160.00
less cumulative amortization EVA 2,134.60 6,766.60
Capitalized R&D EVA (Calculation of Capital) 8,538.40 16,393.40
Consumer Advertisement Expense 34.00
11.33

Advertisement Amortization under EVA 11.33

cumulative Advertizement expense 34.00
less cumulative amortization EVA 11.33
capitalized advertisement EVA 22.67
Goodwill Amortization
Net income Before Tax
Current Years tax payments
Balance Sheets
Net operating Assets
From Foot notes;
Accumiulated Goodwill Amortization
Capital charge for EVA purpose
 1997 1998 1999 2000 2001
$2,920.31 $31,360.59
$2,150.00
$5,070.00
$12,000.00

31,512.00 36,584.00 42,545.00 92,550.00 57,539.00

14,610.00 17,094.00 20,000.00 39,000.00 26,000.00
2,922.00 3,418.80 4,000.00 7,800.00
2,497.40 2,922.00 3,418.80 4,000.00
2,134.60 2,497.40 2,922.00 3,418.80
2,134.60 2,497.40 2,922.00
2,134.60 2,497.40
7,554.00 10,972.80 14,972.80 20,638.20
37,770.00 54,864.00 74,864.00 113,864.00
14,320.60 25,293.40 40,266.20 60,904.40
23,449.40 29,570.60 34,597.80 52,959.60
38.00 41.00 45.00 50.00
12.67 13.67 15.00 16.67
11.33 12.67 13.67 15.00
11.33 12.67 13.67
24.00 37.67 41.33 45.33
72.00 113.00 158.00 208.00
35.33 73.00 114.33 159.67
36.67 40.00 43.67 48.33
2,500.00 2,500.00
20,000.00 51,000.00
7,875.00 (18,725.00)

110,000.00 135,000.00

7,500.00 10,000.00
11%
 5,961.00 5,072.00 6,818.00
1.16294008 1.160954557 1.27609946
42,545.00
49,477.29
57,539.12

NOBAT 50,075.87
1999
NOBAT 27,530.87
NOPAT 17,895.06 19,655.87
capital 152,141.47
IC 16,735.56
EVA 1,159.50 2,920.31 2920

2000
NOBAT 71,866.47
NOPAT 46,713.20 53,141.47
CAPITAL 198,007.93
IC 21,780.87
EVA 24,932.33 31,360.59
EVA Improvement Goal $2,150.00
EVA Target $5,070.00
EVA Interval $12,000.00
EVA Actual 31360.59

Beginning bank balance for 2000 =0

EVA Performance 1+(actual improvement -improvement goal)/
3.43
calculated bonus Target bonus * EVA Performance
$412,105.90
new bank balance= $412,105.90

payout target bonus+100% of remaining balance

$412,105.90

Beginning bank balance for 2001 =0

 Base Salary $200,000.00
Bonus target 60%
$120,000.00

-improvement goal)/interval

remaining balance