Appendix 4

Retained Earnings Schedule

EALA INC.
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 1,874,548.41 2,020,279.89 1,983,281.93 2,058,938.92 2,065,525.68 3,539,026.66 3,623,330.50 3,725,214.27 3,765,722.09 3,869,187.29
Dividends Declared During the Year - - - - - 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

Retained Earnings - Ending 1,874,548.41 2,280,168.64 2,293,821.51 2,650,299.60 3,099,920.51 5,285,071.95 6,482,522.33 7,891,425.46 9,792,034.02 11,814,231.60
 Appendix 4
Retained Earnings Schedule
 Appendix 4
Retained Earnings Schedule

137029.41
 Appendix 1
Pro-forma Income Statement

EALA INC
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 ( 2% growth ) 8,005,621.75 8,157,241.11 8,307,648.40 8,464,870.74 8,621,066.20

VAT Output Tax (12%) 960,674.61 978,868.93 996,917.81 1,015,784.49 1,034,527.94

Net Sales Revenue 7,044,947.14 7,178,372.18 7,310,730.59 7,449,086.25 7,586,538.26

Cost of Sales 61,581.71 62,748.01 63,904.99 65,114.39 66,315.89

Gross Income 6,983,365.43 7,115,624.17 7,246,825.61 7,383,971.86 7,520,222.36

Less: Operating Expenses

Advertising Expense 110,500.00 30,000.00 30,000.00 110,500.00 30,000.00
Depreciation Expense 106,293.90 106,293.90 106,293.90 106,293.90 106,293.90
Repairs & Maintainance 35,000.00 35,000.00 35,000.00 35,000.00
Rent Expense 150,000.00 161,250.00 173,343.75 186,344.53 200,320.37
Salaries and Wages 2,760,000.00 2,760,000.00 2,842,800.00 2,842,800.00 2,928,084.00
SSS Contribution 90,985.20 90,985.20 91,348.80 91,348.80 93,530.40
Phil Health/Medicare 19,950.00 19,950.00 19,950.00 19,950.00 19,950.00
Employee Benefits ( 13th Month Pay) 230,000.00 140,000.00 236,900.00 144,200.00 244,007.00
Utilities Expense (electricity, water, gasoline, telephone) 187,080.00 190,821.60 194,638.03 198,530.79 202,501.41
Supplies Expense 16,911.90 14,546.90 14,546.90 14,546.90 14,546.90
Miscellaneous Expense ( Business Permit,etc) 7,372.00 7,372.00 7,372.00 7,372.00 7,372.00
Insurance Expense 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00
Total Operating Expenses 3,701,593.00 3,578,719.60 3,774,693.38 3,779,386.92 3,904,105.98

Operating Income 3,281,772.43 3,536,904.57 3,472,132.22 3,604,584.94 3,616,116.38

Less: Interest Expense (16%) 525,083.59 565,904.73 555,541.16 576,733.59 578,578.62

Earnings before Tax 2,756,688.84 2,970,999.84 2,916,591.07 3,027,851.35 3,037,537.76

Less: Income Tax (32%) 882,140.43 950,719.95 933,309.14 968,912.43 972,012.08

Net Income 1,874,548.41 2,020,279.89 1,983,281.93 2,058,938.92 2,065,525.68

Pro Forma Income Statement

Page 4 of 41
 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 10,540,926.20 10,735,565.80 10,938,458.51 11,140,572.24 11,350,986.88

VAT Output Tax (12%) 1,264,911.14 1,288,267.90 1,312,615.02 1,336,868.67 1,362,118.43

Net Sales Revenue 9,276,015.06 9,447,297.90 9,625,843.49 9,803,703.58 9,988,868.45

Cost of Sales 81,084.05 82,581.28 84,141.99 85,696.71 87,315.28

Gross Income 9,194,931.01 9,364,716.63 9,541,701.50 9,718,006.87 9,901,553.17

Less: Operating Expenses

Advertising Expense 100,500.00 30,000.00 30,000.00 30,000.00 30,000.00
Depreciation Expense 102,993.90 102,993.90 102,993.90 102,993.90 102,993.90
Repairs & Maintainance 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
Rent Expense 215,344.40 231,495.23 248,857.37 267,521.67 287,585.80
Salaries and Wages 2,928,084.00 3,015,926.52 3,015,926.52 3,106,404.32 3,106,404.32
SSS Contribution 93,630.40 93,895.20 99,475.20 95,080.40 102,024.00
Phil Health/Medicare 19,950.00 20,550.00 20,550.00 20,700.00 20,700.00
Employee Benefits ( 13th Month Pay) 244,007.00 251,327.21 251,327.21 258,867.03 258,867.03
Utilities Expense (electricity, water, gasoline, telephone) 206,551.44 210,682.47 214,896.11 219,194.04 223,577.92
Supplies Expense 14,546.90 14,546.90 14,546.90 14,546.90 14,546.90
Miscellaneous Expense ( Business Permit,etc) 7,372.00 7,372.00 7,372.00 7,372.00 7,372.00
Insurance Expense 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00
Total Operating Expenses 3,990,480.04 4,036,289.42 4,063,445.22 4,180,180.26 4,211,571.86

Operating Income 5,204,450.97 5,328,427.20 5,478,256.29 5,537,826.61 5,689,981.31

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

Earnings before Tax 5,204,450.97 5,328,427.20 5,478,256.29 5,537,826.61 5,689,981.31

Less: Income Tax (32%) 1,665,424.31 1,705,096.71 1,753,042.01 1,772,104.51 1,820,794.02

Net Income 3,539,026.66 3,623,330.50 3,725,214.27 3,765,722.09 3,869,187.29

Pro Forma Income Statement

Page 5 of 41
 Appendix 1
Pro-forma Income Statement

137029.41

Pro Forma Income Statement

Page 6 of 41
 Appendix 11
Cost of Goods Sold Schedule

EALA INC.
COST OF GOODS SOLD SCHEDULE (YEARS 1-5)
1 2 3 4 5
total sales total cost total sales total cost total sales total cost total sales total cost total sales total cost
CGS from Regular Sales (30% markup) 7,802,350.00 60,018.08 7,948,138.47 61,139.53 8,096,651.03 62,281.93 8,247,938.57 63,445.68 8,402,052.95 64,631
CGS from Discount Sales 203,271.75 1,564 209,102.64 1,608 210,997.38 1,623 216,932.17 1,669 219,013.25 1,685
TOTAL COST OF GOODS SOLD 61,581.71 62,748.01 63,904.99 65,114.39 66,315.89

(assuming only 5% of finished goods are returned)

 Appendix 11
Cost of Goods Sold Schedule

EALA INC.
COST OF GOODS SOLD SCHEDULE (YEARS 6-10)
6 7 8 9 10
total sales total cost total sales total cost total sales total cost total sales total cost total sales total cost
CGS from Regular Sales 10,270,856.39 79,006.59 10,462,769.40 80,482.84 10,658,268.34 81,986.68 10,857,420.21 83,518.62 11,060,293.28 85,079.18
CGS from Discount Sales 270,069.81 2,077.46 272,796.40 2,098.43 280,190.17 2,155.31 283,152.03 2,178.09 290,693.60 2,236.10
TOTAL COST OF GOODS SOLD 81,084.05 82,581.28 84,141.99 85,696.71 87,315.28
 Appendix 4
Schedule of Depreciation of Fixed Assets

EALA INC.
Schedule of Depreciation of Fixed Assets
Years 1-5
Year 1 Year 2 Year 3 Year 4
Cost Useful Life Dep'n Expense Accu. Dep'n Carrying Value Dep'n Expense Accu. Dep'n Carrying Value Dep'n Expense Accu. Dep'n Carrying Value Dep'n Expense Accu. Dep'n Carrying Value
Office Assets
Equipment
4 in 1 machine 12,000 5 2,400.00 2,400.00 9,600.00 2,400.00 4,800.00 7,200.00 2,400.00 7,200.00 4,800.00 2,400.00 9,600.00 2,400.00
Computer Set 60000 5 12,000.00 12,000.00 48,000.00 12,000.00 24,000.00 36,000.00 12,000.00 36,000.00 24,000.00 12,000.00 48,000.00 12,000.00
Furniture and Fixtures - - - - - -
Cabinets 2500 10 250.00 250.00 2,250.00 250.00 500.00 2,000.00 250.00 750.00 1,750.00 250.00 1,000.00 1,500.00
chairs and table 29000 10 2,900.00 2,900.00 26,100.00 2,900.00 5,800.00 23,200.00 2,900.00 8,700.00 20,300.00 2,900.00 11,600.00 17,400.00
sofa 4000 10 400.00 400.00 3,600.00 400.00 800.00 3,200.00 400.00 1,200.00 2,800.00 400.00 1,600.00 2,400.00
fire extinguisher 1700 10 170.00 170.00 1,530.00 170.00 340.00 1,360.00 170.00 510.00 1,190.00 170.00 680.00 1,020.00
Leasehold Improvements 15000 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 1,500.00 6,000.00 9,000.00
Store Assets -
Equipment -
sewing machine 30,000 10 3,000.00 3,000.00 27,000.00 3,000.00 6,000.00 24,000.00 3,000.00 9,000.00 21,000.00 3,000.00 12,000.00 18,000.00
edging machines 15000 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 1,500.00 6,000.00 9,000.00
buttonholers 5000 10 500.00 500.00 4,500.00 500.00 1,000.00 4,000.00 500.00 1,500.00 3,500.00 500.00 2,000.00 3,000.00
jeans software 20000 10 2,000.00 2,000.00 18,000.00 2,000.00 4,000.00 16,000.00 2,000.00 6,000.00 14,000.00 2,000.00 8,000.00 12,000.00
computer set 30000 10 3,000.00 3,000.00 27,000.00 3,000.00 6,000.00 24,000.00 3,000.00 9,000.00 21,000.00 3,000.00 12,000.00 18,000.00
chairs and worktables 5710 10 571.00 571.00 5,139.00 571.00 1,142.00 4,568.00 571.00 1,713.00 3,997.00 571.00 2,284.00 3,426.00
phone 2000 5 400.00 400.00 1,600.00 400.00 800.00 1,200.00 400.00 1,200.00 800.00 400.00 1,600.00 400.00
safety deposit box 1700 10 170.00 170.00 1,530.00 170.00 340.00 1,360.00 170.00 510.00 1,190.00 170.00 680.00 1,020.00
Furnitures and Fixtures -
display materials 15000 2 7,500.00 7,500.00 7,500.00 7,500.00 15,000.00 - 7,500.00 7,500.00 7,500.00 7,500.00 15,000.00 -
2-seater sofa 6000 5 1,200.00 1,200.00 4,800.00 1,200.00 2,400.00 3,600.00 1,200.00 3,600.00 2,400.00 1,200.00 4,800.00 1,200.00
chair 2000 5 400.00 400.00 1,600.00 400.00 800.00 1,200.00 400.00 1,200.00 800.00 400.00 1,600.00 400.00
centertable 4000 5 800.00 800.00 3,200.00 800.00 1,600.00 2,400.00 800.00 2,400.00 1,600.00 800.00 3,200.00 800.00
floorlamp 1500 5 300.00 300.00 1,200.00 300.00 600.00 900.00 300.00 900.00 600.00 300.00 1,200.00 300.00
lighting system 8000 10 800.00 800.00 7,200.00 800.00 1,600.00 6,400.00 800.00 2,400.00 5,600.00 800.00 3,200.00 4,800.00
fire extinguisher 1700 10 170.00 170.00 1,530.00 170.00 340.00 1,360.00 170.00 510.00 1,190.00 170.00 680.00 1,020.00
airconditioning unit 17000 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 1,700.00 6,800.00 10,200.00
Leasehold Improvements 293629 10 29,362.90 29,362.90 264,266.10 29,362.90 58,725.80 234,903.20 29,362.90 88,088.70 205,540.30 29,362.90 117,451.60 176,177.40
Vehicle 300000 10 30,000.00 30,000.00 270,000.00 30,000.00 60,000.00 240,000.00 30,000.00 90,000.00 210,000.00 30,000.00 120,000.00 180,000.00
Total Accumulated Depreciation-Fixed Assets 106,293.90 212,587.80 293,981.70 410,175.60
Total Depreciation Expense 106,293.90 106,293.90 106,293.90 106,293.90
 Appendix 4
Schedule of Depreciation of Fixed Assets

Year 5
Dep'n Expense Accu, Dep'n Carrying Value

2,400.00 12,000.00 Err:522

12,000.00 60,000.00 Err:522
- -
250.00 1,250.00 1,250.00
2,900.00 14,500.00 14,500.00
400.00 2,000.00 2,000.00
170.00 850.00 850.00
1,500.00 7,500.00 7,500.00
-
-
3,000.00 15,000.00 15,000.00
1,500.00 7,500.00 7,500.00
500.00 2,500.00 2,500.00
2,000.00 10,000.00 10,000.00
3,000.00 15,000.00 15,000.00
571.00 2,855.00 2,855.00
400.00 2,000.00 -
170.00 850.00 850.00
-
7,500.00 7,500.00 7,500.00
1,200.00 6,000.00 -
400.00 2,000.00 -
800.00 4,000.00 -
300.00 1,500.00 -
800.00 4,000.00 4,000.00
170.00 850.00 850.00
1,700.00 8,500.00 8,500.00
29,362.90 146,814.50 146,814.50
30,000.00 150,000.00 150,000.00
501,469.50
106,293.90
 Appendix 4
Schedule of Depreciation of Fixed Assets

EALA Inc.
Schedule of Depreciation of Fixed Assets
Years 7- 10
Year 6 Year 7 Year 8 Year 9
Carrying Value Cost Useful Life Dep'n Expense Accu. Dep'n Carrying Value 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 machine 12,000 5 2,400.00 2,400.00 9,600.00 2,400.00 4,800.00 7,200.00 2,400.00 7,200.00 4,800.00 2,400.00 9,600.00 2,400.00
Computer Set 60000 5 12,000.00 12,000.00 48,000.00 12,000.00 24,000.00 36,000.00 12,000.00 36,000.00 24,000.00 12,000.00 48,000.00 12,000.00
Furniture and Fixtures
Cabinets 2500 10 250.00 1,500.00 1,000.00 250.00 1,750.00 750.00 250.00 2,000.00 500.00 250.00 2,250.00 250.00
chairs and table 29000 10 2,900.00 17,400.00 11,600.00 2,900.00 20,300.00 8,700.00 2,900.00 23,200.00 5,800.00 2,900.00 26,100.00 2,900.00
sofa 4000 10 400.00 2,400.00 1,600.00 400.00 2,800.00 1,200.00 400.00 3,200.00 800.00 400.00 3,600.00 400.00
fire extinguisher 1700 10 170.00 1,020.00 680.00 170.00 1,190.00 510.00 170.00 1,360.00 340.00 170.00 1,530.00 170.00
Leasehold Improvements 15000 10 1,500.00 9,000.00 6,000.00 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
Store Assets
Equipment
sewing machine 30,000 10 3,000.00 18,000.00 12,000.00 3,000.00 21,000.00 9,000.00 3,000.00 24,000.00 6,000.00 3,000.00 27,000.00 3,000.00
edging machines 15000 10 1,500.00 9,000.00 6,000.00 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
buttonholers 5000 10 500.00 3,000.00 2,000.00 500.00 3,500.00 1,500.00 500.00 4,000.00 1,000.00 500.00 4,500.00 500.00
jeans software 20000 10 2,000.00 12,000.00 8,000.00 2,000.00 14,000.00 6,000.00 2,000.00 16,000.00 4,000.00 2,000.00 18,000.00 2,000.00
computer set 30000 10 3,000.00 18,000.00 12,000.00 3,000.00 21,000.00 9,000.00 3,000.00 24,000.00 6,000.00 3,000.00 27,000.00 3,000.00
chairs and worktables 5710 10 571.00 3,426.00 2,284.00 571.00 3,997.00 1,713.00 571.00 4,568.00 1,142.00 571.00 5,139.00 571.00
phone 2000 5 400.00 400.00 1,600.00 400.00 800.00 1,200.00 400.00 1,200.00 800.00 400.00 1,600.00 400.00
safety deposit box 1700 10 170.00 1,020.00 680.00 170.00 1,190.00 510.00 170.00 1,360.00 340.00 170.00 1,530.00 170.00
Furnitures and Fixtures
display materials 15000 2 7,500.00 15,000.00 - 7,500.00 7,500.00 7,500.00 7,500.00 15,000.00 - 7,500.00 7,500.00 7,500.00
2-seater sofa 6000 5 1,200.00 1,200.00 4,800.00 1,200.00 2,400.00 3,600.00 1,200.00 3,600.00 2,400.00 1,200.00 4,800.00 1,200.00
chair 2000 5 400.00 400.00 1,600.00 400.00 800.00 1,200.00 400.00 1,200.00 800.00 400.00 1,600.00 400.00
centertable 4000 5 800.00 800.00 3,200.00 800.00 1,600.00 2,400.00 800.00 2,400.00 1,600.00 800.00 3,200.00 800.00
floorlamp 1500 5 300.00 300.00 1,200.00 300.00 600.00 900.00 300.00 900.00 600.00 300.00 1,200.00 300.00
lighting system 8000 10 800.00 4,800.00 3,200.00 800.00 5,600.00 2,400.00 800.00 6,400.00 1,600.00 800.00 7,200.00 800.00
fire extinguisher 1700 10 170.00 1,020.00 680.00 170.00 1,190.00 510.00 170.00 1,360.00 340.00 170.00 1,530.00 170.00
airconditioning unit 17000 10 1,700.00 10,200.00 6,800.00 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
Leasehold Improvements 293629 10 29,362.90 176,177.40 117,451.60 29,362.90 205,540.30 88,088.70 29,362.90 234,903.20 58,725.80 29,362.90 264,266.10 29,362.90
Vehicle 300000 10 30,000.00 180,000.00 120,000.00 30,000.00 210,000.00 90,000.00 30,000.00 240,000.00 60,000.00 30,000.00 270,000.00 30,000.00
Total Accumulated Depreciation-Fixed Assets 500,463.40 588,457.30 691,451.20 779,445.10
Total Depreciation Expense 102,993.90 102,993.90 102,993.90 102,993.90
 Appendix 4
Schedule of Depreciation of Fixed Assets

Year 10
Dep'n Expense Accu. Dep'n Carrying Value

2,400.00 12,000.00 -
12,000.00 60,000.00 -

250.00 2,500.00 -
2,900.00 29,000.00 -
400.00 4,000.00 -
170.00 1,700.00 -
1,500.00 15,000.00 -

3,000.00 30,000.00 -
1,500.00 15,000.00 -
500.00 5,000.00 -
2,000.00 20,000.00 -
3,000.00 30,000.00 -
571.00 5,710.00 -
400.00 2,000.00 -
170.00 1,700.00 -

7,500.00 15,000.00 -
1,200.00 6,000.00 -
400.00 2,000.00 -
800.00 4,000.00 -
300.00 1,500.00 -
800.00 8,000.00 -
170.00 1,700.00 -
1,700.00 17,000.00 -
29,362.90 293,629.00 -
30,000.00 300,000.00 -
882,439.00
102,993.90
 Appendix 5
Schedule of Salary and Benefits

EALA INC.
SALARY AND BENEFITS SCHEDULE
YEAR 1 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 35,000.00 420,000.00 420,000.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 35,000.00 35,000.00
Production/Operations Manager 1 25,000.00 300,000.00 300,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 25,000.00 25,000.00
Sales and Marketing Manager 1 22,000.00 264,000.00 264,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,000.00 22,000.00
Finance Manager 1 22,000.00 264,000.00 264,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,000.00 22,000.00
Human Resource Manager 1 22,000.00 264,000.00 264,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,000.00 22,000.00
Accountant 1 18,000.00 216,000.00 216,000.00 556.00 6,672.00 6,672.00 112.50 1,350.00 1,350.00 18,000.00 18,000.00
Market Researcher 1 18,000.00 216,000.00 216,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 18,000.00 18,000.00
Designer/Cashier 1 20,000.00 240,000.00 240,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 20,000.00 20,000.00
Tailor 3 12,000.00 144,000.00 432,000.00 374.00 4,488.00 13,464.00 75.00 900.00 2,700.00 12,000.00 36,000.00
Cutter 1 12,000.00 144,000.00 144,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 12,000.00 12,000.00

PAYABLE AT YEAR END 2,760,000.00 90,985.20 19,950.00 230,000.00

YEAR 2 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 35,000.00 420,000.00 420,000.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 35,000.00 35,000.00
Production/Operations Manager 1 25,000.00 300,000.00 300,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 25,000.00 25,000.00
Sales and Marketing Manager 1 22,000.00 264,000.00 264,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,000.00 22,000.00
Finance Manager 1 22,000.00 264,000.00 264,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,000.00 22,000.00
Human Resource Manager 1 22,000.00 264,000.00 264,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,000.00 22,000.00
Accountant 1 18,000.00 216,000.00 216,000.00 556.00 6,672.00 6,672.00 112.50 1,350.00 1,350.00 18,000.00 18,000.00
Market Researcher 1 18,000.00 216,000.00 216,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 18,000.00 18,000.00
Designer/Cashier 1 20,000.00 240,000.00 240,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 20,000.00 20,000.00
Tailor 3 12,000.00 144,000.00 432,000.00 374.00 4,488.00 13,464.00 75.00 900.00 2,700.00 12,000.00 36,000.00
Cutter 1 12,000.00 144,000.00 144,000.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 12,000.00 12,000.00

PAYABLE AT YEAR END 2,760,000.00 90,985.20 19,950.00 230,000.00

YEAR 3 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 36,050.00 432,600.00 432,600.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 36,050.00 36,050.00
Production/Operations Manager 1 25,750.00 309,000.00 309,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 25,750.00 25,750.00
Sales and Marketing Manager 1 22,660.00 271,920.00 271,920.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,660.00 22,660.00
Finance Manager 1 22,660.00 271,920.00 271,920.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,660.00 22,660.00
Human Resource Manager 1 22,660.00 271,920.00 271,920.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,660.00 22,660.00
Accountant 1 18,540.00 222,480.00 222,480.00 586.30 7,035.60 7,035.60 112.50 1,350.00 1,350.00 18,540.00 18,540.00
Market Researcher 1 18,540.00 222,480.00 222,480.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 18,540.00 18,540.00
Designer/Cashier 1 20,600.00 247,200.00 247,200.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 20,600.00 20,600.00
Tailor 3 12,360.00 148,320.00 444,960.00 374.00 4,488.00 13,464.00 75.00 900.00 2,700.00 12,360.00 37,080.00
Cutter 1 12,360.00 148,320.00 148,320.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 12,360.00 12,360.00

PAYABLE AT YEAR END 2,842,800.00 91,348.80 19,950.00 236,900.00

YEAR 4 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 36,050.00 432,600.00 432,600.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 36,050.00 36,050.00
Production/Operations Manager 1 25,750.00 309,000.00 309,000.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 25,750.00 25,750.00
Sales and Marketing Manager 1 22,660.00 271,920.00 271,920.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,660.00 22,660.00
Finance Manager 1 22,660.00 271,920.00 271,920.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,660.00 22,660.00
Human Resource Manager 1 22,660.00 271,920.00 271,920.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 22,660.00 22,660.00
Accountant 1 18,540.00 222,480.00 222,480.00 586.30 7,035.60 7,035.60 112.50 1,350.00 1,350.00 18,540.00 18,540.00
Market Researcher 1 18,540.00 222,480.00 222,480.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 18,540.00 18,540.00
Designer/Cashier 1 20,600.00 247,200.00 247,200.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 20,600.00 20,600.00
Tailor 3 12,360.00 148,320.00 444,960.00 374.00 4,488.00 13,464.00 75.00 900.00 2,700.00 12,360.00 37,080.00
Cutter 1 12,360.00 148,320.00 148,320.00 434.70 5,216.40 5,216.40 87.50 1,050.00 1,050.00 12,360.00 12,360.00

PAYABLE AT YEAR END 2,842,800.00 91,348.80 19,950.00 236,900.00

 Appendix 5
Schedule of Salary and Benefits

YEAR 5 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 37,131.50 445,578.00 445,578.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 37,131.50 37,131.50
Production/Operations Manager 1 26,522.50 318,270.00 318,270.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 26,522.50 26,522.50
Sales and Marketing Manager 1 23,339.80 280,077.60 280,077.60 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 23,339.80 23,339.80
Finance Manager 1 23,339.80 280,077.60 280,077.60 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 23,339.80 23,339.80
Human Resource Manager 1 23,339.80 280,077.60 280,077.60 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 23,339.80 23,339.80
Accountant 1 19,096.20 229,154.40 229,154.40 586.30 7,035.60 7,035.60 112.50 1,350.00 1,350.00 19,096.20 19,096.20
Market Researcher 1 19,096.20 229,154.40 229,154.40 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 19,096.20 19,096.20
Designer/Cashier 1 21,218.00 254,616.00 254,616.00 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 21,218.00 21,218.00
Tailor 3 12,730.80 152,769.60 458,308.80 404.30 4,851.60 14,554.80 75.00 900.00 2,700.00 12,730.80 38,192.40
Cutter 1 12,730.80 152,769.60 152,769.60 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 12,730.80 12,730.80

2,928,084.00 93,530.40 19,950.00 244,007.00

PAYABLE AT YEAR END

YEAR 6 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 37,131.50 445,578.00 445,578.00 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 37,131.50 37,131.50
Production/Operations Manager 1 26,522.50 318,270.00 318,270.00 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 26,522.50 26,522.50
Sales and Marketing Manager 1 23,339.80 280,077.60 280,077.60 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 23,339.80 23,339.80
Finance Manager 1 23,339.80 280,077.60 280,077.60 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 23,339.80 23,339.80
Human Resource Manager 1 23,339.80 280,077.60 280,077.60 920.00 11,040.00 11,040.00 187.50 2,250.00 2,250.00 23,339.80 23,339.80
Accountant 1 19,096.20 229,154.40 229,154.40 586.30 7,035.60 7,035.60 112.50 1,350.00 1,350.00 19,096.20 19,096.20
Market Researcher 1 19,096.20 229,154.40 229,154.40 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 19,096.20 19,096.20
Designer/Cashier 1 21,218.00 254,616.00 254,616.00 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 21,218.00 21,218.00
Tailor 3 12,730.80 152,769.60 458,308.80 404.30 4,851.60 14,554.80 75.00 900.00 2,700.00 12,730.80 38,192.40
Cutter 1 12,730.80 152,769.60 152,769.60 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 12,730.80 12,730.80

PAYABLE AT YEAR END 2,928,084.00 93,530.40 19,950.00 244,007.00

YEAR 7 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 38,245.45 458,945.34 458,945.34 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 38,245.45 38,245.45
Production/Operations Manager 1 27,318.18 327,818.10 327,818.10 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 27,318.18 27,318.18
Sales and Marketing Manager 1 24,039.99 288,479.93 288,479.93 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,039.99 24,039.99
Finance Manager 1 24,039.99 288,479.93 288,479.93 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,039.99 24,039.99
Human Resource Manager 1 24,039.99 288,479.93 288,479.93 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,039.99 24,039.99
Accountant 1 19,669.09 236,029.03 236,029.03 616.70 7,400.40 7,400.40 112.50 1,350.00 1,350.00 19,669.09 19,669.09
Market Researcher 1 19,669.09 236,029.03 236,029.03 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 19,669.09 19,669.09
Designer/Cashier 1 21,854.54 262,254.48 262,254.48 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 21,854.54 21,854.54
Tailor 3 13,112.72 157,352.69 472,058.06 404.30 4,851.60 14,554.80 75.00 900.00 2,700.00 13,112.72 39,338.17
Cutter 1 13,112.72 157,352.69 157,352.69 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 13,112.72 13,112.72

PAYABLE AT YEAR END 3,015,926.52 93,895.20 20,550.00 251,327.21

YEAR 8 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 38,245.45 458,945.34 458,945.34 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 38,245.45 38,245.45
Production/Operations Manager 1 27,318.18 327,818.10 327,818.10 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 27,318.18 27,318.18
Sales and Marketing Manager 1 24,039.99 288,479.93 288,479.93 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,039.99 24,039.99
Finance Manager 1 24,039.99 288,479.93 288,479.93 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,039.99 24,039.99
Human Resource Manager 1 24,039.99 288,479.93 288,479.93 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,039.99 24,039.99
Accountant 1 19,669.09 236,029.03 236,029.03 616.70 7,400.40 7,400.40 112.50 1,350.00 1,350.00 19,669.09 19,669.09
Market Researcher 1 19,669.09 236,029.03 236,029.03 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 19,669.09 19,669.09
Designer/Cashier 1 21,854.54 262,254.48 262,254.48 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 21,854.54 21,854.54
Tailor 3 13,112.72 157,352.69 472,058.06 404.30 4,851.60 14,554.80 75.00 900.00 2,700.00 13,112.72 39,338.17
Cutter 1 13,112.72 157,352.69 157,352.69 465.00 5,580.00 5,580.00 87.50 1,050.00 1,050.00 13,112.72 13,112.72

PAYABLE AT YEAR END 3,015,926.52 93,895.20 20,550.00 251,327.21

 Appendix 5
Schedule of Salary and Benefits

YEAR 9 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 39,392.81 472,713.70 472,713.70 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 39,392.81 39,392.81
Production/Operations Manager 1 28,137.72 337,652.64 337,652.64 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 28,137.72 28,137.72
Sales and Marketing Manager 1 24,761.19 297,134.33 297,134.33 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,761.19 24,761.19
Finance Manager 1 24,761.19 297,134.33 297,134.33 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,761.19 24,761.19
Human Resource Manager 1 24,761.19 297,134.33 297,134.33 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,761.19 24,761.19
Accountant 1 20,259.16 243,109.90 243,109.90 616.70 7,400.40 7,400.40 125.00 1,500.00 1,500.00 20,259.16 20,259.16
Market Researcher 1 20,259.16 243,109.90 243,109.90 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 20,259.16 20,259.16
Designer/Cashier 1 22,510.18 270,122.11 270,122.11 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 22,510.18 22,510.18
Tailor 3 13,506.11 162,073.27 486,219.81 434.70 5,216.40 15,649.20 75.00 900.00 2,700.00 13,506.11 40,518.32
Cutter 1 13,506.11 162,073.27 162,073.27 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 13,506.11 13,506.11

PAYABLE AT YEAR END 3,106,404.32 96,080.40 20,700.00 258,867.03

YEAR 10 ADMINISTRATIVE EXPENSES SSS CONTRIBUTION PHILHEALTH CONTRIBUTION 13TH MONTH PAY
POSITION NO. OF EMPLOYEESMONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL MONTHLY ANNUALLY TOTAL ANNUALLY TOTAL
CEO 1 39,392.81 472,713.70 472,713.70 920.00 11,040.00 11,040.00 312.50 3,750.00 3,750.00 39,392.81 39,392.81
Production/Operations Manager 1 28,137.72 337,652.64 337,652.64 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 28,137.72 28,137.72
Sales and Marketing Manager 1 24,761.19 297,134.33 297,134.33 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,761.19 24,761.19
Finance Manager 1 24,761.19 297,134.33 297,134.33 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,761.19 24,761.19
Human Resource Manager 1 24,761.19 297,134.33 297,134.33 920.00 11,040.00 11,040.00 200.00 2,400.00 2,400.00 24,761.19 24,761.19
Accountant 1 20,259.16 243,109.90 243,109.90 616.70 7,400.40 7,400.40 125.00 1,500.00 1,500.00 20,259.16 20,259.16
Market Researcher 1 20,259.16 243,109.90 243,109.90 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 20,259.16 20,259.16
Designer/Cashier 1 22,510.18 270,122.11 270,122.11 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 22,510.18 22,510.18
Tailor 3 13,506.11 162,073.27 486,219.81 434.70 5,216.40 15,649.20 75.00 900.00 2,700.00 13,506.11 40,518.32
Cutter 1 13,506.11 162,073.27 162,073.27 495.30 5,943.60 5,943.60 87.50 1,050.00 1,050.00 13,506.11 13,506.11

PAYABLE AT YEAR END 3,106,404.32 96,080.40 20,700.00 258,867.03

 Appendix 5
Schedule of Salary and Benefits

TOTAL PAYABLE
AT YEAR END

3,100,935.20

3,100,935.20

307,870.00
307,870.00
249,405.60
247,286.40
274,066.40
498,204.00

3,190,998.80

3,190,998.80
 Appendix 5
Schedule of Salary and Benefits

316,707.40
316,707.40
256,636.20
254,880.60
282,464.00
513,756.00

3,285,571.40

3,285,571.40

325,959.92
325,959.92
264,448.52
262,328.12
290,739.02
528,651.04

3,381,698.93

3,381,698.93
 Appendix 5
Schedule of Salary and Benefits

3,482,051.74

335,335.52
335,335.52
272,269.46
270,362.66
299,625.89
545,087.32

3,482,051.74
 Appendix 7
Schedule of Supplies Expense

EALA Inc.
Initial Supplies Expense

Supplies Expense Qty. Unit Unit Cost Total Cost

Shop / Workroom Supplies
Shears 4 pcs. 150 600
L-square 1 pcs. 220 220
Curved Ruler 1 pcs. 220 220
Tape Measure 2 pcs. 30 60
Dummy Jeans 2 pcs. 250 500
Total Shop Supplies Expense 1600

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 4 pcs. 100.00 400.00
Door Mats 3 pcs. 40.00 120.00
Garbage Bags 20 10 pcs 48.45 969.00
Bathroom Deodorizer 6 pcs. 33.15 198.90
Wet Mop 1 pcs. 286.00 286.00
Dry Mop 1 pcs. 286.00 286.00
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 2 pcs. 51.25 102.50
Broom 2 pcs. 52.50 105.00
Dust Pans 2 pcs. 30.00 60.00
Total Cleaning Supplies Expenses 4,327.40
Total Initial Supplies Expenses 16,911.90
 Appendix 7
Schedule of Supplies Expense

EALA Inc.
Yearly Supplies Expense
Years 2-10
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
Memo Pads 12 pads 24.50 294.00
Total Office Supplies Expense 12 pcs. 14.50 174.00
10,602.00
Cleaning Supplies
Door Mats
Garbage Bags 6 pcs. 40.00 240.00
Bathroom Deodorizer 20 10 pcs 48.45 969.00
Wet Mop 6 pcs. 33.15 198.90
Dry Mop 1 pcs. 286.00 286.00
Liquid Hand Soap 1 pcs. 286.00 286.00
Paper Towel 12 bottles 60.00 720.00
Tissue Paper 24 packs 20.00 480.00
Broom 10 dz 60.00 600.00
Dust Pans 2 pcs. 52.50 105.00
Total Cleaning Supplies Expenses 2 pcs. 30.00 60.00
Total Supplies Expenses 3,944.90
14,546.90
 Appendix 6
Yearly Miscellaneous Expense Schedule

EALA 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 9
Schedule of Utilities Expense

EALA 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 118,680.00 121,053.60 123,474.67 125,944.17 128,463.05 131,032.31 133,652.96 136,326.02 139,052.54
Water 14,400.00 14,688.00 14,981.76 15,281.40 15,587.02 15,898.76 16,216.74 16,541.07 16,871.90
Gasoline 36,000.00 36,720.00 37,454.40 38,203.49 38,967.56 39,746.91 40,541.85 41,352.68 42,179.74
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 187,080.00 190,821.60 194,638.03 198,530.79 202,501.41 206,551.44 210,682.47 214,896.11 219,194.04

Accrued expense at year end 15,590.00 15,901.80 16,219.84 16,544.23 16,875.12 17,212.62 17,556.87 17,908.01 18,266.17
Expense

escalation 1.02
 Appendix 9
Schedule of Utilities Expense

EALA INC.
Schedule of Utilities Expense
Year 10

141,833.59
17,209.33
43,023.33
21,511.67
223,577.92

18,631.49
 Appendix 10
Sales Forecast

EALA 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 8,213 8,366 8,523 8,682 8,844 9,010 9,178 9,349 9,524 9,702
Estimated Percentage of items sold (at regular price) 95% 95% 95% 95% 95% 95% 95% 95% 95% 95%
Sold units (at regular price) 7,802 7,948 8,097 8,248 8,402 8,559 8,719 8,882 9,048 9,217
Average Selling Price 1000 1000 1000 1000 1000 1200 1200 1200 1200 1200
Revenue From regular Sales 7,802,350.00 7,948,138.47 8,096,651.03 8,247,938.57 8,402,052.95 10,270,856.39 10,462,769.40 10,658,268.34 10,857,420.21 11,060,293.28
Unsold Items from Previous year 0 4 0 4 0 4 0 4 0 4
Units Available for Discount Sale (50% discount) 411 422 426 438 442 455 459 472 477 489
Percentage sold (at discount price) 99% 99% 99% 99% 99% 99% 99% 99% 99% 99%
Sold units (at discount price) 407 418 422 434 438 450 455 467 472 484
Selling Price (at discount) 500 500 500 500 500 600 600 600 600 600
Revenue From Discounted Sales 203,271.75 209,102.64 210,997.38 216,932.17 219,013.25 270,069.81 272,796.40 280,190.17 283,152.03 290693.60
Total Sales (in units) 8,209 8,366 8,519 8,682 8,840 9,009 9,174 9,349 9,520 9,701
Total Sales (in peso) 8,005,621.75 8,157,241.11 8,307,648.40 8,464,870.74 8,621,066.20 10,540,926.20 10,735,565.80 10,938,458.51 11,140,572.24 11,350,986.88
 APPENDIX 2
PRO-FORMA BALANCE SHEET

EALA 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 500,000.00 2,958,025.26 5,035,191.38 8,240,103.48 10,530,125.35 10,820,306.04
Inventory ( Raw Materials) 39,885.00 39,885.00 39,885.00 39,885.00 39,885.00 39,885.00
Supplies on Hand 16,911.90 1,212.24 1,212.24 1,212.24 1,212.24 1,212.24
Prepaid Rent 75,000.00 - - - - -
Total Current Assets 631,796.90 2,999,122.50 5,076,288.62 8,281,200.72 10,571,222.59 10,861,403.28

Fixed Assets
Office Assets 109,200.00 109,200.00 109,200.00 109,200.00 109,200.00 109,200.00
Store Assets 464,610.00 464,610.00 464,610.00 464,610.00 464,610.00 464,610.00
Total Fixed Assets 573,810.00 573,810.00 573,810.00 573,810.00 573,810.00 573,810.00
Less: Accumulated Depreciation - 75,431.00 181,724.90 263,118.80 379,312.70 470,606.60
Total Fixed Assets 573,810.00 498,379.00 392,085.10 310,691.20 194,497.30 103,203.40

Intangibles
Leasehold Improvement 308,629.00 308,629.00 308,629.00 308,629.00 308,629.00 308,629.00
Less: Accumulated Depreciation (10%) - 30,862.90 61,725.80 92,588.70 123,451.60 154,314.50
Total Intangibles 308,629.00 438,983.70 388,910.40 338,837.10 288,763.80 238,690.50

TOTAL ASSETS 1,514,235.90 3,936,485.20 5,857,284.12 8,930,729.02 11,054,483.69 11,203,297.18

LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities
Interest Payable - 27,855.10 27,855.10 - - -
VAT Output Tax Payable - 960,674.61 978,868.93 996,917.81 1,015,784.49 1,034,527.94
Income Tax Payable - 882,140.43 950,719.95 933,309.14 968,912.43 972,012.08
Total Current Liabilities - 1,870,670.14 1,957,443.98 1,930,226.95 1,984,696.92 2,006,540.03

Long-term Liabilities
Long-term loan 198,965.00 198,965.00 198,965.00 - - -

TOTAL LIABILITIES 198,965.00 2,069,635.14 2,156,408.98 1,930,226.95 1,984,696.92 2,006,540.03

Stockholder's Equity
Capital Stock (P10 par value) 1,315,270.90 1,315,270.90 1,315,270.90 1,315,270.90 1,315,270.90 1,315,270.90
Retained Earnings - 1,874,548.41 2,280,168.64 2,293,821.51 2,650,299.60 3,099,920.51

TOTAL STOCKHOLDER'S EQUITY 1,315,270.90 3,189,819.31 3,595,439.54 3,609,092.41 3,965,570.50 4,415,191.41

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

1,514,235.90 5,259,454.45 5,751,848.52 5,539,319.36 5,950,267.42 6,421,731.44
 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
Inventory 39,885.00 39,885.00 39,885.00 39,885.00 39,885.00
Supplies on Hand 1,212.24 1,212.24 1,212.24 1,212.24 1,212.24

Total Current Assets 41,097.24 41,097.24 41,097.24 41,097.24 41,097.24

Fixed Assets
Office Assets 109,200.00 109,200.00 109,200.00 109,200.00 109,200.00
Store Assets 464,610.00 464,610.00 464,610.00 464,610.00 464,610.00
Total Fixed Assets 573,810.00 573,810.00 573,810.00 573,810.00 573,810.00
Less: Accumulated Depreciation 315,286.00 372,417.00 444,548.00 501,679.00 573,810.00
Total Fixed Assets 258,524.00 201,393.00 129,262.00 72,131.00 -

Intangibles
Leasehold Improvement 308,629.00 308,629.00 308,629.00 308,629.00 308,629.00
Less: Accumulated Depreciation 185,177.40 216,040.30 246,903.20 277,766.10 308,629.00
Total Intangibles 123,451.60 92,588.70 61,725.80 30,862.90 -

TOTAL ASSETS 423,072.84 335,078.94 232,085.04 144,091.14 41,097.24

LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities
Interest Payable - - - - -
VAT Output Tax Payable 1,264,911.14 1,288,267.90 1,312,615.02 1,336,868.67 1,362,118.43
Income Tax Payable 1,665,424.31 1,705,096.71 1,753,042.01 1,772,104.51 1,820,794.02
Total Current Liabilities 2,930,335.46 2,993,364.60 3,065,657.03 3,108,973.18 3,182,912.44

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

TOTAL LIABILITIES 2,930,335.46 2,993,364.60 3,065,657.03 3,108,973.18 3,182,912.44

Stockholder's Equity
Capital Stock (P10 par value) 1,315,270.90 1,315,270.90 1,315,270.90 1,315,270.90 1,315,270.90
Retained Earnings 5,285,071.95 6,482,522.33 7,891,425.46 9,792,034.02 11,814,231.60

TOTAL STOCKHOLDER'S EQUITY 6,600,342.85 7,797,793.23 9,206,696.36 11,107,304.92 13,129,502.50

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 9,530,678.31 10,791,157.83 12,272,353.39 14,216,278.10 16,312,414.94
 Appendix 3
Statement of Cash Flows

EALA INC.
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 1,874,548.41 2,020,279.89 1,983,281.93 2,058,938.92 2,065,525.68
Increase (Decrease) in Depreciation - Fixed Assets 106,293.90 106,293.90 106,293.90 106,293.90 106,293.90
Increase (Decrease) in Depreciation - Leasehold Improvements 30,862.90 30,862.90 30,862.90 30,862.90 30,862.90
Increase (Decrease) in Supplies On Hand (15,699.66) - - - -
Increase (Decrease) in Prepaid Expense (75,000.00) - - - -
Increase (Decrease) in Interest Payable 27,855.10 - (27,855.10) - -
Increase (Decrease) in VAT Output Tax Payable 960,674.61 18,194.32 Err:522 Err:522 Err:522
Increase (Decrease) in Income Tax Payable 122,300.00 (98,464.90) 108,315.42 76,335.55 173,466.50
Net Cash Provided by Operating Activities 3,031,835.26 2,077,166.11 Err:522 Err:522 Err:522

Cash Flows from Investing and Financing Activities

Acquisition of Office Assets (109,200.00) - - - (1,200.00)
Acquisition of Store Assets (464,610.00) - (15,000.00) - (15,000.00)
Increase (Decrease) in Long-term Loan - (198,965.00) - -
Dividends Paid - - - - -
Net Cash Provided by Investing and Financing Activities (573,810.00) - (213,965.00) - (16,200.00)

Increase (Decrease) in Cash 2,458,025.26 2,077,166.11 Err:522 Err:522 Err:522

Add: Cash - Beginning 500,000.00 2,958,025.26 5,035,191.38 Err:522 Err:522

Cash Balance - End 2,958,025.26 5,035,191.38 Err:522 Err:522 Err:522

 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 Supplies On Hand - - - - -
Increase (Decrease) in Prepaid Expense - - - - -
Increase (Decrease) in Interest Payable (27,935.50) - - - -
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 1,450,541.90 1,575,140.80 2,316,207.75 2,120,216.57 2,878,642.02

Cash Flow from Financing and Investing Activities

Acquisition of Office Assets (72,000.00) - - - -
Acquisition of Store Assets (15,500.00) (15,000.00) - (15,000.00) -
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 (187,500.00) (115,000.00) (100,000.00) (115,000.00) (100,000.00)

Increase (Decrease) in Cash 1,263,041.90 1,460,140.80 2,216,207.75 2,005,216.57 2,778,642.02

Err:522 Err:522 Err:522 Err:522 Err:522

Cash Balance End Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

 Appendix 3
Statement of Cash Flows
 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 8
Schedule of Rental Expenses

EALA Inc.
Schedule of Rental Payments
Year 1-10
Year 1 2 3 4 5 6 7 8 9 10
Basic Rent (monthly) 12500 13,437.50 14,445.31 15,528.71 16,693.36 17,945.37 19,291.27 20,738.11 22,293.47 23,965.48
Total Annual Rental Expense 150,000.00 161,250.00 173,343.75 186,344.53 200,320.37 215,344.40 231,495.23 248,857.37 267,521.67 287,585.80

*inflation 7.50%
 Appendix 8
Schedule of Rental Expenses
 Appendix 8
Schedule of Rental Expenses
 Appendix 8
Schedule of Rental Expenses
 Appendix 8
Schedule of Rental Expenses
 Appendix 8
Schedule of Rental Expenses
 Appendix 8
Schedule of Rental Expenses
 Appendix 8
Schedule of Rental Expenses
 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 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 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%