9S-2B Corporation

Forecasted Income Statement

2011 2012 2013 2014 2015

Sales P 1,791,360.00 P2,108,600.00 P2,445,520.00 P2,807,400.00 P3,194,240.00
Cost of Sales 1,030,032.00 1,289,794.60 1,399,158.20 1,516,878.60 1,640,971.80
Gross Profit P 761,032.00 P 818,805.40 P1,046,361.80 P1,290,521.40 P1,553,268.20
Less: Operating Expenses
Salaries P271,440.00 P377,520.00 P396,396.00 P416,217.36 P439,027.76
SSS,Philhealth,PAG-IBIG 6,132.00 8,778.90 9,243.77 9,548.84 10,080.67
th
13 month pay 60,060.00 84,370.00 88,588.50 93,017.60 97,668.22
Depreciation 8,669.17 8,669.17 8,669.17 8,669.17 8,669.17
Pre-operating Exp. 10,900.00 -0- -0- -0- -0-
Permits and Licenses 3,315.00 3,480.75 3,654.79 3,837.53 4,029.41
Cleaning Supplies 513.00 528.15 554.56 582.29 611.40
Office Supplies 749.50 786.98 826.33 867.65 911.03
Promotion & advertising 8,920.00 8,028.00 7,225.20 6,502.68 5,852.41
Miscellaneous 3,000.00 3,150.00 3,307.20 3,472.88 3,646.52
Gasoline Expense 2,340.00 2,457.00 2,579.85 2,708.84 2,844.28
Electricity 2,880.00 3,024.00 3,175.20 3,333.96 2,500.66
Rent Expense 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Total Operating Exp P 380,109.37 P 501,992.95 P 525,420.87 P 549,958.80 P 576,041.53
Operating Income P 381,218.63 P 316,812.45 P 520,940.93 P 740,562.60 P 977,226.67
Less: Income tax Exp. (30%) 114,365.59 95,043.74 156,282.28 222,168.78 293,168.00
Net Income P 266,853.04 P 221,768.71 P 364,658.65 P 518,393.80 P 684,058.67

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 9S-2B Corporation
Forecasted Cash Flow

2011 2012 2013 2014 2015

Cash flow from operating activities:
Cash receipts from sales P 1,612,224.00 P 1,897,740.00 P 2,200,968.00 P 2,526,660.00 P 2,874,816.00
Cash collections on accounts receivable -0- 179,136.00 210,860.00 244,552.00 280,740.00
Cash payments for purchase of raw materials ( 499,116.80) ( 560,253.40) ( 633,354.400) ( 713,169.40) ( 798,574.00)
Cash allocated for ending inventory ( 3,312) ( 4,136.60) ( 4,485.60) ( 4,863.00) ( 5,260.00)
Cash payments to labor ( 477,840.00) ( 634,573.80) ( 666,456.20) ( 700,020.40) ( 734,711.20)
Cash payments for manufacturing expenses ( 88,075.20) ( 91,655.00) ( 95,211.00) ( 99,203.20) ( 102,823.60)
Cash payments for selling & admin. expenses ( 380,109.37) ( 501,992.95) ( 525,420.87) ( 540,958.80) ( 576,41.53)
Cash payments for income taxes -0- ( 114,365.59) ( 95,043.74) ( 156,282.28) ( 222,168.78)
Add: Depreciation 13,366.07 13,366.07 13,366.07 13,366.07 13,366.07
Net cash provided for operating activities P 212,136.70 P 183,264.33 P 405,222.26 P 561,080.99 P 729,342.96
Cash flow from investing activities:
Cash payments to acquire motorcycle P ( 15,000.00) P -0- P -0- P -0- P -0-
Cash payments to acquire furnitures & fixtures ( 36,200.00) -0- -0- ( 8,000.00) -0-
Cash payments to acquire prod. tools & equip ( 16,992.00) -0- -0- -0- -0-
Net cash provided for investing activities P (68,122.00) -0- -0- P (8,000.00) P -0-
Cash flow from financing activities
Cash proceeds from the incorporators P 165,000.00 -0- P -0- P -0- P -0-
P
Net cash provided for financing activities P 165,000.00 P -0- P -0- P -0-
-0-
Net increase of cash P 309,014.70 P 183,264.33 P 405,222.36 P 553,0380.99 P 729,342.96
Cash balance, beginning -0- 309,014.70 492,279.03 897,501.29 1, 450,582.28
Cash balance, end P 309,014.70 P 492,279.03 P 897,501.29 P 1,450,582.28 P 2,179,925.24

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 9S-2B Corporation
Forecasted Balance Sheet

2011 2012 2013 2014 2015

ASSETS
Current Assets:
Cash P309,014.70 P492,279.03 P 897,501.29 P1,450,582.28 P2,179,925.24
Accounts Receivable 179,136.00 210,860.00 244,552.00 280,740.00 319,424.00
Inventories 3,312.00 4,136.60 4,485.60 4,863.00 5,260.00
Total Current Assets P491,462,70 P707,275.03 P1,146,538.89 P1,736,545.28 P2,504,609.24
Non-Current Assets:
Motorcycle / Vehicle P 15,000.00 P 15,000.00 P 15,000.00 P 15,000.00 P 15,000.00
Furnitures & Fixtures 36,200.00 36,200.00 36,200.00 44,200.00 44,200.00
Prod. Tools & Eq. 16,922.00 16,922.00 16,922.00 16,922.00 16,922.00
Total P 68,122.00 P 68,122.00 P 68,122.00 P 76,122.00 P 76,122.00
Less: Accu. Dep’n 13,366.07 26,732.14 40,098.21 53,464.28 66,830.35
Total Noncurrent Assets P 54,755.93 P 41,389.86 P 28,023.79 P 22,657.72 P 9,291.65
Total Assets P546,218.63 P748,665.49 P 1,174,562,68 P1,758,843.00 P2,513,900.89
LIABILITIES AND
SHAREHOLDER’S EQUITY
Liabilities
Income Tax Payable P114,365.59 P 95,043.74 P 156,282.28 P 222,168.78 P 293,168.00
Total Liabilities 365.59, 95,043.74 156,282.28 222,168.78 293,168.00
Shareholder’s Equity
Share Capital P165,000.00 P165,000.00 P 165,000.00 P 165,000.00 P 165,000.00
Retained Earnings 266,853.94 488,621.75 853,280.40 1,371,674.22 2,055,732.89
Total Shareholders’ Eq. P431,853.04 P653,621.75 P1,018,280.90 P 1,536,674.22 P 2,220.732.89
Total liabilities and Sharreholders’ Equity P546,218.63 P748,665,49 P1,174,562.68 P1,758,843.00 P2,513,900.89

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 2011 2012 2013 2014 2015

I. Measures of Profitability
818,805.40/2,108,600

Gross Profit Margin 761,328 / 1,791,360 1,046,361.80/2,445,520 1,290,521.40/2,807,400 1,553,268.20/3,194,240

(Gross Margin/Sales) 0.43 0.39 0.43 0.46 0.49
Net Profit Margin 266,853.04/1,791,360 221,768.71/2,108,600 364,658.65/2, 445,520 518,393.82/2,807,400 684,058.67/3,194,240
(Net Income/Sales) 0.15 0.11 0.15 0.29 0.21
Return on Total Sales 266,853.04/546,218.63 21,768.71/748,665.49 364,658.65/1,174,562.68 518,393.82/1,758,843 684,058.67/2,513,900.89
(Net Income/Total Assets) 0.49 0.3 0.31 0.3 0.27
II. Measure of Assets Uses:
87,340/(4,485.60+ 93,580/(4,863+4,485.60+ 99,820/(5,260+4,863+4,485.60+
Inventory Turnover 74,640/3,312 81,100/(4,136,060+3,312/2) 1,436.60+3,312/3) 4,136.60+3,312/4) 4,136.60+3,312/5)
(Cost of Goods Sold/Ave. Invty.) 22.54 times per year 1.78 times per year 21.96 times per year 22.28 times per year 22.63 times per year
Days Supply in Inventory 365/22.54 365/1.78 365/21.96 365/22.28 365/22.63
(365 days/Inventory Turnover) 16.19 days 16.76 days 16.6 days 16.38 days 16.13 days
Fixed Asset Turnover 1,791,360/54,755.93 2,108,600/41,389.86 2,445,520/28,023.79 807,400/22,657.72 3,194,240/9291.65
(Sales/Net Fixed Assets) 32.72 50.94 87.27 123.9 343.78
2,807,4
Total Asset Turnover 1,791,360/546,218.63 2,108,600/748,665.49 2,445,520/1,174,562.68 00/1,758,843 3,194,240/2,513,900.89
(Sales/Total Assets) 3.28 2.82 2.08 1.6 1.27
III. Measures of Liquidity and the
use of Debt
491,462.70-
Net Working Capital 114,365.59 707,275.63-95,043.74 1,146,538.89-156,282.28 1,736,545.28-222,168.78 2,504,609.24-293,168
(Current Assets-Current
Liabilities) 377,097.11 612,231.89 990,256.61 1,514,376.50 2,211,441.24
Current Ratio 491,462.70/114,365.59 70,275.63/95,043.74 1,146,538.89/156,282.28 1,736,545.28/22,168.78 2,504,609.24/293,168
(Current Assets/Current
Liabilities) 4.3 7.44 7.34 78.33 8.54
491,462.70- 1,146,538.894,485.60/ 1,736,545.28- 2,504,609.24-
Quick Ratio 3,312/114,365.59 707,275.63-4,136.60/95,043.74 156,282.28 4,863/222,168.78 5,260.80/293,168
(Current Assets-Inventory/CL) 4.27 7.4 7.31 7.79 8.53
Debt to Equity Ratio 114,365.59/431,853.04 95,043.74/653,621.75 56,282.28/1,018,280.40 222,168.78/1,536,674.22 293,168/2,220,732.89
(Total Debt/Total Capital) 0.03 0.01 0.06 0.14 0.13
Debt Ratio 114,365.59/546,218.63 95,043.74/748,665.49 156,282.28/1,174,562.68 222,168.78/1,758,843 293,168/2,513,900.89
(Total Debt/Total Assets) 0.21 0.13 0.13 0.13 0.12
FINANCIAL ANALYSIS
Break Even
Analysis: 2011 Ratio 2012 Ratio 2013 Ratio 2014 Ratio 2015 Ratio

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 Php24.00 100% Php26.00 100% Php28.00 100% Php30.00 100% Php32.00 100%
Selling Price Per
Pack Php13.80 57.50% Php15.91 61.19% Php16.02 57.21% Php16.21 54.03% Php16.44 51.38%
Variable cost and
expenses per
pack Php10.20 42.5 Php10.09 38.81% Php11.98 42.79% Php13.79 45.97% Php15.56 48.62%
Contribution
Margin Per Pack Php761,328.00 818,299 1,046,333 ,290,468.20 1,553,199.20
Fixed Cost

BEP Units (FC/

CMU) 761,328/10.20 81,299/10.09 1,046,333.20/11.98 1,290,468.20/13.79% 1,553,199.20/15.56
74,640 81,100 87,340 93,580 99,820
BEP Sales (FC /
CMR) 761,328/42.5% 818,299/38.81% 1,046,333.20/42.79% 1290468.20/45.97% 1,553,199.20/42.5%
1,791,360 2,108,600 2,445,520 2,807,400 3,194,240

Return on Investment:

Net Income
=
Total Shareholders’ Equity

= 266,853.04
431853.04

= 2.22%

= 2 months and 22 days

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