Musicbox KTV

Projected Salary
For the years ended December 31, 2015 to 2019

Position Add'l Total

Initial No. of personnel to employees Monthly
Personnel be hired by 2016 Rate 2015 2016 2017 2018 2019
Operations Manager 1 1 12,500 150,000 157,500 165,375 173,644 182,326
Cashier 1 1 8,500 102,000 107,100 112,455 118,078 123,982
Cook 2 1 3 10,500 252,000 396,900 416,745 437,582 459,461
Assistant Cook 2 1 3 8,500 204,000 321,300 337,365 354,233 371,945
Waiter 3 3 8,000 288,000 302,400 317,520 333,396 350,066
Janitor 1 1 7,800 93,600 98,280 103,194 108,354 113,771
Security guard 1 1 7,800 93,600 98,280 103,194 108,354 113,771
Total 63,600 1,183,200 1,481,760 1,555,848 1,633,640 1,715,322

Note: Total salary of Cook and Assistant Cook is charged to Cost of Sales and the rest to Operating Expenses.
Musicbox KTV
Projected Lapsing Schedule of Property and Equipment
For the years ended December 31, 2015 to 2019

Annual
Deprecia Additional Depreciation
Item Qty Unit Cost Total Cost Life tion Acquisition 2015
Furnitures and Fixtures
Cash Register 1 5,000 5,000 5 1,000 - 1,000
Filing Cabinet 1 4,000 4,000 5 800 - 800
Display Rack Counter 2 7,000 14,000 5 2,800 - 2,800
Dining Tables 10 1,500 15,000 5 3,000 - 3,000
Sofa 6 10,000 60,000 5 12,000 - 12,000
Chairs 50 300 15,000 3 5,000 - 5,000
Small Square Tables 6 1,000 6,000 3 2,000 - 2,000
Fire Extinguisher 2 7,000 14,000 3 4,667 - 4,667
35,800 133,000 31,267 - 31,267

Leasehold Improvement
Sink 3 1,500 4,500 5 900 - 900
Lock 10 100 1,000 5 200 - 200
Office Light 7 600 4,200 5 840 - 840
Door Knob 10 300 3,000 5 600 - 600
Paint 24 800 19,200 5 3,840 - 3,840
Faucet 5 500 2,500 5 500 - 500
Switch 15 100 1,500 5 300 - 300
Extension Wire 10 600 6,000 5 1,200 - 1,200
Roller Brush 5 35 175 5 35 - 35
Hollow Block 150 10 1,500 5 300 - 300
Cement (bags) 10 100 1,000 5 200 - 200
Wash Sand 8 200 1,600 5 320 - 320
Thinner 3 35 105 5 21 - 21
Outlet 20 100 2,000 5 400 - 400
Toilet bowl 5 2,500 12,500 5 2,500 - 2,500
Gravel 5 130 650 5 130 - 130
Kitchen Sink 1 4,000 4,000 5 800 - 800
11,610 65,430 13,086 - 13,086

KTV Equipment
Aircon 8 25,000 200,000 5 40,000 - 40,000
Emergency Light 7 200 1,400 5 280 - 280
TV Sets 2 28,000 56,000 5 11,200 - 11,200
KTV Sets 6 25,000 150,000 5 30,000 - 30,000
Calculator 2 200 400 5 80 - 80
DVD Player 3 3,000 9,000 5 1,800 - 1,800
Mop Squeezer 2 350 700 5 140 - 140
USB 3 200 600 5 120 - 120
 Annual
Deprecia Additional Depreciation
Item Qty Unit Cost Total Cost Life tion Acquisition 2015
81,950 418,100 83,620 - 83,620

Bar Utensils
Food tongs 3 38 114 3 38 125 38
Ice tongs 10 30 300 3 100 330 100
Blender 2 1,800 3,600 5 720 - 720
Chopping Board 3 150 450 3 150 495 150
Peeler 3 44 132 3 44 145 44
Stainless Pitcher 10 100 998 3 333 1,097 333
Toothpick Dispenser 10 20 200 3 67 220 67
Tissue Holder 10 69 690 3 230 759 230
Ice Scooper 2 35 70 3 23 77 23
Bar Tray 10 10 100 3 33 110 33
Bottle Opener 2 79 158 3 53 174 53
Bar Knives 3 110 330 3 110 363 110
2,485 7,142 1,901 3,896 1,901

Kitchen Utensils
Casserole 3 900 2,700 3 900 2,970 900
Rice Cooker 2 4,000 8,000 5 1,600 1,600
Dinner Spoons 100 25 2,500 3 833 2,750 833
Dinner Forks 100 25 2,500 3 833 2,750 833
Teaspoon 50 22 1,100 3 367 1,210 367
Deep Fryers 2 2,000 4,000 3 1,333 4,400 1,333
Freezer 1 30,000 30,000 5 6,000 - 6,000
Toaster 1 1,500 1,500 5 300 - 300
Microwave 2 2,000 4,000 5 800 - 800
4 gas burner with oven 1 15,000 15,000 5 3,000 - 3,000
2 gas burner 2 1,500 3,000 5 600 - 600
Steak Knives 50 35 1,750 3 583 1,925 583
Measuring Cup 2 60 120 3 40 132 40
Can Opener 2 300 600 3 200 660 200
Spatula 2 63 126 3 42 139 42
Kettle 2 375 750 3 250 825 250
Vegetable Peeler 2 50 100 3 33 110 33
Blender 2 3,500 7,000 5 1,400 - 1,400
Butcher’s Knife 3 500 1,500 3 500 1,650 500
Cheese Grater 2 190 380 3 127 418 127
Mixing Bowl 5 290 1,450 3 483 1,595 483
Plate Rack 2 500 1,000 3 333 1,100 333
Glass Rack 2 300 600 3 200 660 200
Chopping Board 4 140 560 3 187 616 187
Ice Scooper 2 50 100 3 33 110 33
Ice Bucket 10 100 1,000 3 333 1,100 333
Trash Can 2 300 600 3 200 660 200
 Annual
Deprecia Additional Depreciation
Item Qty Unit Cost Total Cost Life tion Acquisition 2015
Utility Can 2 713 1,426 3 475 1,569 475
Steak Plate 30 100 3,000 5 600 - 600
Steak Pot 5 400 2,000 5 400 - 400
LPG 5 1,500 7,500 5 1,500 - 1,500
Water Dispenser 2 700 1,400 3 467 1,540 467
Drinking Glass 70 25 1,750 3 583 1,925 583
Shot Glass 30 10 300 3 100 330 100
Soap Sanitizer 4 100 400 3 133 440 133
Plates 100 30 3,000 3 1,000 3,300 1,000
Bowls 60 30 1,800 3 600 1,980 600
Condiments 15 69 1,035 3 345 1,139 345
67,402 115,547 27,716 38,002 27,716

Grand Total 199,247 739,219 157,589 41,897 157,589

Note: Depreciation of Bar and kitchen utensils is charged to

Cost of Sales and the rest to Operating expenses.
Musicbox KTV
Projected Lapsing Schedule of Property and Equipment
For the years ended December 31, 2015 to 2019

Depreciation Expense Accumulated Depreciation

Item 2016 2017 2018 2019 2015 2016 2017
Furnitures and Fixtures
Cash Register 1,000 1,000 1,000 1,000 1,000 2,000 3,000
Filing Cabinet 800 800 800 800 800 1,600 2,400
Display Rack Counter 2,800 2,800 2,800 2,800 2,800 5,600 8,400
Dining Tables 3,000 3,000 3,000 3,000 3,000 6,000 9,000
Sofa 12,000 12,000 12,000 12,000 12,000 24,000 36,000
Chairs 5,000 5,000 - - 5,000 10,000 15,000
Small Square Tables 2,000 2,000 - - 2,000 4,000 6,000
Fire Extinguisher 4,667 4,667 - - 4,667 9,333 14,000
31,267 31,267 19,600 19,600 31,267 62,533 93,800

Leasehold Improvement
Sink 900 900 900 900 900 1,800 2,700
Lock 200 200 200 200 200 400 600
Office Light 840 840 840 840 840 1,680 2,520
Door Knob 600 600 600 600 600 1,200 1,800
Paint 3,840 3,840 3,840 3,840 3,840 7,680 11,520
Faucet 500 500 500 500 500 1,000 1,500
Switch 300 300 300 300 300 600 900
Extension Wire 1,200 1,200 1,200 1,200 1,200 2,400 3,600
Roller Brush 35 35 35 35 35 70 105
Hollow Block 300 300 300 300 300 600 900
Cement (bags) 200 200 200 200 200 400 600
Wash Sand 320 320 320 320 320 640 960
Thinner 21 21 21 21 21 42 63
Outlet 400 400 400 400 400 800 1,200
Toilet bowl 2,500 2,500 2,500 2,500 2,500 5,000 7,500
Gravel 130 130 130 130 130 260 390
Kitchen Sink 800 800 800 800 800 1,600 2,400
13,086 13,086 13,086 13,086 13,086 26,172 39,258

KTV Equipment
Aircon 40,000 40,000 40,000 40,000 40,000 80,000 120,000
Emergency Light 280 280 280 280 280 560 840
TV Sets 11,200 11,200 11,200 11,200 11,200 22,400 33,600
KTV Sets 30,000 30,000 30,000 30,000 30,000 60,000 90,000
Calculator 80 80 80 80 80 160 240
DVD Player 1,800 1,800 1,800 1,800 1,800 3,600 5,400
Mop Squeezer 140 140 140 140 140 280 420
USB 120 120 120 120 120 240 360
 Depreciation Expense Accumulated Depreciation
Item 2016 2017 2018 2019 2015 2016 2017
83,620 83,620 83,620 83,620 83,620 167,240 250,860

Bar Utensils
Food tongs 38 38 42 42 38 76 114
Ice tongs 100 100 110 110 100 200 300
Blender 720 720 720 720 720 1,440 2,160
Chopping Board 150 150 165 165 150 300 450
Peeler 44 44 48 48 44 88 132
Stainless Pitcher 333 333 366 366 333 665 998
Toothpick Dispenser 67 67 73 73 67 133 200
Tissue Holder 230 230 253 253 230 460 690
Ice Scooper 23 23 26 26 23 47 70
Bar Tray 33 33 37 37 33 67 100
Bottle Opener 53 53 58 58 53 105 158
Bar Knives 110 110 121 121 110 220 330
1,901 1,901 2,019 2,019 1,901 3,801 5,702

Kitchen Utensils
Casserole 900 900 990 990 900 1,800 2,700
Rice Cooker 1,600 1,600 1,600 1,600 1,600 3,200 4,800
Dinner Spoons 833 833 917 917 833 1,667 2,500
Dinner Forks 833 833 917 917 833 1,667 2,500
Teaspoon 367 367 403 403 367 733 1,100
Deep Fryers 1,333 1,333 1,467 1,467 1,333 2,667 4,000
Freezer 6,000 6,000 6,000 6,000 6,000 12,000 18,000
Toaster 300 300 300 300 300 600 900
Microwave 800 800 800 800 800 1,600 2,400
4 gas burner with oven 3,000 3,000 3,000 3,000 3,000 6,000 9,000
2 gas burner 600 600 600 600 600 1,200 1,800
Steak Knives 583 583 642 642 583 1,167 1,750
Measuring Cup 40 40 44 44 40 80 120
Can Opener 200 200 220 220 200 400 600
Spatula 42 42 46 46 42 84 126
Kettle 250 250 275 275 250 500 750
Vegetable Peeler 33 33 37 37 33 67 100
Blender 1,400 1,400 1,400 1,400 1,400 2,800 4,200
Butcher’s Knife 500 500 550 550 500 1,000 1,500
Cheese Grater 127 127 139 139 127 253 380
Mixing Bowl 483 483 532 532 483 967 1,450
Plate Rack 333 333 367 367 333 667 1,000
Glass Rack 200 200 220 220 200 400 600
Chopping Board 187 187 205 205 187 373 560
Ice Scooper 33 33 37 37 33 67 100
Ice Bucket 333 333 367 367 333 667 1,000
Trash Can 200 200 220 220 200 400 600
 Depreciation Expense Accumulated Depreciation
Item 2016 2017 2018 2019 2015 2016 2017
Utility Can 475 475 523 523 475 951 1,426
Steak Plate 600 600 600 600 600 1,200 1,800
Steak Pot 400 400 400 400 400 800 1,200
LPG 1,500 1,500 1,500 1,500 1,500 3,000 4,500
Water Dispenser 467 467 513 513 467 933 1,400
Drinking Glass 583 583 642 642 583 1,167 1,750
Shot Glass 100 100 110 110 100 200 300
Soap Sanitizer 133 133 147 147 133 267 400
Plates 1,000 1,000 1,100 1,100 1,000 2,000 3,000
Bowls 600 600 660 660 600 1,200 1,800
Condiments 345 345 380 380 345 690 1,035
27,716 27,716 28,867 28,867 27,716 55,431 83,147

Grand Total 157,589 157,589 147,192 147,192 157,589 315,178 472,767

Musicbox KTV
Projected Lapsing Schedule of Property and Equipment
For the years ended December 31, 2015 to 2019

Accumulated Depreciation Net Book Value

Item 2018 2019 2015 2016 2017 2018 2019
Furnitures and Fixtures
Cash Register 4,000 5,000 4,000 3,000 2,000 1,000 -
Filing Cabinet 3,200 4,000 3,200 2,400 1,600 800 -
Display Rack Counter 11,200 14,000 11,200 8,400 5,600 2,800 -
Dining Tables 12,000 15,000 12,000 9,000 6,000 3,000 -
Sofa 48,000 60,000 48,000 36,000 24,000 12,000 -
Chairs 15,000 15,000 10,000 5,000 - - -
Small Square Tables 6,000 6,000 4,000 2,000 - - -
Fire Extinguisher 14,000 14,000 9,333 4,667 - - -
113,400 133,000 101,733 70,467 39,200 19,600 -

Leasehold Improvement
Sink 3,600 4,500 3,600 2,700 1,800 900 -
Lock 800 1,000 800 600 400 200 -
Office Light 3,360 4,200 3,360 2,520 1,680 840 -
Door Knob 2,400 3,000 2,400 1,800 1,200 600 -
Paint 15,360 19,200 15,360 11,520 7,680 3,840 -
Faucet 2,000 2,500 2,000 1,500 1,000 500 -
Switch 1,200 1,500 1,200 900 600 300 -
Extension Wire 4,800 6,000 4,800 3,600 2,400 1,200 -
Roller Brush 140 175 140 105 70 35 -
Hollow Block 1,200 1,500 1,200 900 600 300 -
Cement (bags) 800 1,000 800 600 400 200 -
Wash Sand 1,280 1,600 1,280 960 640 320 -
Thinner 84 105 84 63 42 21 -
Outlet 1,600 2,000 1,600 1,200 800 400 -
Toilet bowl 10,000 12,500 10,000 7,500 5,000 2,500 -
Gravel 520 650 520 390 260 130 -
Kitchen Sink 3,200 4,000 3,200 2,400 1,600 800 -
52,344 65,430 52,344 39,258 26,172 13,086 -

KTV Equipment
Aircon 160,000 200,000 160,000 120,000 80,000 40,000 -
Emergency Light 1,120 1,400 1,120 840 560 280 -
TV Sets 44,800 56,000 44,800 33,600 22,400 11,200 -
KTV Sets 120,000 150,000 120,000 90,000 60,000 30,000 -
Calculator 320 400 320 240 160 80 -
DVD Player 7,200 9,000 7,200 5,400 3,600 1,800 -
Mop Squeezer 560 700 560 420 280 140 -
USB 480 600 480 360 240 120 -
 Accumulated Depreciation Net Book Value
Item 2018 2019 2015 2016 2017 2018 2019
334,480 418,100 334,480 250,860 167,240 83,620 -

Bar Utensils
Food tongs 156 198 76 38 - 84 42
Ice tongs 410 520 200 100 - 220 110
Blender 2,880 3,600 2,880 2,160 1,440 720 -
Chopping Board 615 780 300 150 - 330 165
Peeler 180 229 88 44 - 97 48
Stainless Pitcher 1,363 1,729 665 333 - 732 366
Toothpick Dispenser 273 347 133 67 - 147 73
Tissue Holder 943 1,196 460 230 - 506 253
Ice Scooper 96 121 47 23 - 51 26
Bar Tray 137 173 67 33 - 73 37
Bottle Opener 216 274 105 53 - 116 58
Bar Knives 451 572 220 110 - 242 121
7,720 9,739 5,241 3,341 1,440 3,317 1,299

Kitchen Utensils
Casserole 3,690 4,680 1,800 900 - 1,980 990
Rice Cooker 6,400 8,000 6,400 4,800 3,200 1,600 -
Dinner Spoons 3,417 4,333 1,667 833 - 1,833 917
Dinner Forks 3,417 4,333 1,667 833 - 1,833 917
Teaspoon 1,503 1,907 733 367 - 807 403
Deep Fryers 5,467 6,933 2,667 1,333 - 2,933 1,467
Freezer 24,000 30,000 24,000 18,000 12,000 6,000 -
Toaster 1,200 1,500 1,200 900 600 300 -
Microwave 3,200 4,000 3,200 2,400 1,600 800 -
4 gas burner with oven 12,000 15,000 12,000 9,000 6,000 3,000 -
2 gas burner 2,400 3,000 2,400 1,800 1,200 600 -
Steak Knives 2,392 3,033 1,167 583 - 1,283 642
Measuring Cup 164 208 80 40 - 88 44
Can Opener 820 1,040 400 200 - 440 220
Spatula 172 218 84 42 - 92 46
Kettle 1,025 1,300 500 250 - 550 275
Vegetable Peeler 137 173 67 33 - 73 37
Blender 5,600 7,000 5,600 4,200 2,800 1,400 -
Butcher’s Knife 2,050 2,600 1,000 500 - 1,100 550
Cheese Grater 519 659 253 127 - 279 139
Mixing Bowl 1,982 2,513 967 483 - 1,063 532
Plate Rack 1,367 1,733 667 333 - 733 367
Glass Rack 820 1,040 400 200 - 440 220
Chopping Board 765 971 373 187 - 411 205
Ice Scooper 137 173 67 33 - 73 37
Ice Bucket 1,367 1,733 667 333 - 733 367
Trash Can 820 1,040 400 200 - 440 220
 Accumulated Depreciation Net Book Value
Item 2018 2019 2015 2016 2017 2018 2019
Utility Can 1,949 2,472 951 475 - 1,046 523
Steak Plate 2,400 3,000 2,400 1,800 1,200 600 -
Steak Pot 1,600 2,000 1,600 1,200 800 400 -
LPG 6,000 7,500 6,000 4,500 3,000 1,500 -
Water Dispenser 1,913 2,427 933 467 - 1,027 513
Drinking Glass 2,392 3,033 1,167 583 - 1,283 642
Shot Glass 410 520 200 100 - 220 110
Soap Sanitizer 547 693 267 133 - 293 147
Plates 4,100 5,200 2,000 1,000 - 2,200 1,100
Bowls 2,460 3,120 1,200 600 - 1,320 660
Condiments 1,415 1,794 690 345 - 759 380
112,014 140,881 87,831 60,116 32,400 41,534 12,667

Grand Total 619,958 767,150 581,630 424,041 266,452 161,158 13,966

Musicbox KTV
Exhibit 1 - Projected Sales
For the years ended December 31, 2015 to 2019

Year 1 Year 2 Year 3 Year 4 Year 5

2015 2016 2017 2018 2019

KTV 1,800,000 1,980,000 2,178,000 2,395,800 2,635,380

Foods 1,560,000 1,716,000 1,887,600 2,076,360 2,283,996
Beverages 1,080,000 1,188,000 1,306,800 1,437,480 1,581,228
Drinks 1,680,000 1,848,000 2,032,800 2,236,080 2,459,688
Total 6,120,000 6,732,000 7,405,200 8,145,720 8,960,292

Schedule 2 - Cost of Sales

For the years ended December 31, 2015 to 2019

Year 1 Year 2 Year 3 Year 4 Year 5

2015 2016 2017 2018 2019

KTV 939,301 1,033,231 1,136,554 1,250,209 1,375,230

Foods 870,492 957,541 1,053,295 1,158,624 1,274,487
Beverages 489,800 538,780 592,658 651,924 717,116
Drinks 793,956 873,351 960,686 1,056,755 1,162,430
Depreciation 29,616 29,616 29,616 30,886 30,886
Salaries and wages 456,000 718,200 754,110 791,816 831,406
Total 2,639,863 3,117,488 3,390,365 3,690,004 4,016,325
Musicbox KTV
Exhibit 3 - Projected Operating Expenses
For the years ended December 31, 2015 to 2019

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

2014 2015 2016 2017 2018 2019
Salaries and wages (Schedule 1) 56,200 1,164,200 1,025,760 837,648 879,530 923,507
Depreciation (Schedule 2) - 114,887 114,887 114,887 103,220 103,220
KTV supplies 5,000 60,000 63,000 66,150 69,458 72,930
Kitchen supplies - 96,000 100,800 105,840 111,132 116,689
Repairs and maintenance - 36,000 37,800 39,690 41,675 43,758
Utilities (Water and Electricity) 15,000 240,000 252,000 264,600 277,830 291,722
Communications 3,000 60,000 63,000 66,150 69,458 72,930
Rent 20,000 120,000 126,000 132,300 138,915 145,861
Professional fees 30,000 24,000 25,200 26,460 27,783 29,172
Advertisement 40,000 60,000 63,000 66,150 69,458 72,930
Insurance - 20,000 21,000 22,050 23,153 24,310
Taxes and licenses 15,000 95,000 99,750 104,738 109,974 115,473
Miscellaneous 10,000 120,000 126,000 132,300 138,915 145,861
Total 194,200 2,210,087 2,118,197 1,978,962 2,060,499 2,158,363
Musicbox KTV
Projected Income Statement
For the years ended December 31, 2015 to 2019

Year 0 Year 1 Year 2 Year 3 Year 4

2014 2015 2016 2017 2018
Sales (Exhibit 1) - 6,120,000 6,732,000 7,405,200 8,145,720
Cost of Sales (Exhibit 2) - 2,639,863 3,117,488 3,390,365 3,690,004
Gross Profit - 3,480,137 3,614,512 4,014,835 4,455,716
Operating Expenses (Exhibit 3) 194,200 2,210,087 2,118,197 1,978,962 2,060,499
Income before Income tax (194,200) 1,270,050 1,496,315 2,035,873 2,395,216
Income tax - - - - -
Net Income (194,200) 1,270,050 1,496,315 2,035,873 2,395,216

Musicbox KTV
Projected Balance Sheet
As of December 31, 2015 to 2019
Year 0 Year 1 Year 2 Year 3 Year 4
2014 2015 2016 2017 2018
ASSETS
Current Assets
Petty Cash fund 10,000 10,000 10,000 10,000 10,000
Change fund 10,000 10,000 10,000 10,000 10,000
Cash in bank 382,595 1,887,471 3,494,088 4,862,236 6,393,028
Inventories 263,986 311,749 339,037 369,000 401,633
Total Current Assets 666,582 2,219,220 3,853,124 5,251,237 6,814,661

Property and Equipment 739,219 581,630 424,041 266,452 161,158

1,405,800 2,800,850 4,277,165 5,517,689 6,975,819

LIABILITIES AND PARTNERS' EQUITY

Accounts and other payables - 125,000 105,000 124,000 145,000
Partners' Equity
Partners' equity at beginning of period 1,600,000 1,405,800 2,675,850 4,172,165 5,393,689
Net income (loss) (194,200) 1,270,050 1,496,315 2,035,873 2,395,216
Total Capital 1,405,800 2,675,850 4,172,165 6,208,038 7,788,905
Profit Sharing - - - (814,349) (958,087)
Net Equity 1,405,800 2,675,850 4,172,165 5,393,689 6,830,819
1,405,800 2,800,850 4,277,165 5,517,689 6,975,819

Musicbox KTV
Projected Cash Flows
As of December 31, 2015 to 2019
Year 0 Year 1 Year 2 Year 3 Year 4
2014 2015 2016 2017 2018
Cash Flows afrom Operating Activities
 Year 0 Year 1 Year 2 Year 3 Year 4
2014 2015 2016 2017 2018
Net income (loss) (194,200) 1,270,050 1,496,315 2,035,873 2,395,216
Adjustments to arrive at net cash provided by
operating activities
Depreciation - 157,589 157,589 157,589 147,192
Operating profit before changes in
operating activities (194,200) 1,427,639 1,653,904 2,193,461 2,542,408
Decrease/increase in operating
assets and liabilites
Petty cash fund (10,000) - - - -
Change fund (10,000) - - - -
Inventories (263,986) (47,762) (27,288) (29,964) (32,632)
Accounts and other payables - 125,000 (20,000) 19,000 21,000
Net cash generated from operations (478,186) 1,504,876 1,606,616 2,182,497 2,530,776
Income taxes paid - - - - -
Net cash provided by operating activities (478,186) 1,504,876 1,606,616 2,182,497 2,530,776

Cash Flows from Investing Activity

Acquisition of property and equipment (739,219) - - - (41,897)

Cash Flows from Financing Activities

Investment of Partners 1,600,000 - - - -
Profit sharing - - - (814,349) (958,087)
Net cash provided by financing activities 1,600,000 - - (814,349) (958,087)
Net increase in cash in bank 382,595 1,504,876 1,606,616 1,368,148 1,530,792
Cash at beginning of period - 382,595 1,887,471 3,494,088 4,862,236
Cash in bank at end of period 382,595 1,887,471 3,494,088 4,862,236 6,393,028
 Year 5
2019
8,960,292
4,016,325
4,943,967
2,158,363
2,785,603
-
2,785,603

Year 5
2019

10,000
10,000
8,060,215
540,000
8,620,215

13,966
8,634,181

132,000

6,830,819
2,785,603
9,616,422
(1,114,241)
8,502,181
8,634,181

Year 5
2019
 Year 5
2019
2,785,603

147,192

2,932,795

-
-
(138,367)
(13,000)
2,781,428
-
2,781,428

-
(1,114,241)
(1,114,241)
1,667,186
6,393,028
8,060,215
FINANCIAL ANALYSIS RATIOS
Year 1 Year 2 Year 3 Year 4 Year 5
2015 2016 2017 2018 2019
Liquidity Ratios
Current Assets
Current Ratio 15.26 33.47 39.37 44.23 61.21
Current Liabilities

Quick Assets
Quick Ratio 15.26 33.47 39.37 44.23 61.21
Current Liabilities

Asset Management
Sales
Inventory Turnover 19.63 19.86 20.07 20.28 16.59
Inventories

Days Sales - 365

18.59 18.38 18.19 18.00 22.00
Inventory Inventory Turnover

Receivables
DSO N/A N/A N/A N/A N/A
Annual Sales/365

Fixed Assets Sales

10.52 15.88 27.79 50.55 641.59
Turnover Net Fixed Assets

Total Assets Sales

2.19 1.57 1.34 1.17 1.04
Turnover Total Assets

Profitability
Profit margin on Net income
21% 22% 27% 29% 31%
sales Sales

Return on total Net income

45% 35% 37% 34% 32%
assets Total Assets

Return on Net Income

47% 36% 38% 35% 33%
Investment Total Equity
CAPITAL BUDGETING ANALYSIS

Payback Period

No. of Years Cash Flow Investment Payback Period

Year 1 -2015 1,427,639 1,427,639 1.00
Year 2 - 2016 1,653,904 172,361 0.10
Year 3 - 2017 2,193,461
Year 4 - 2018 2,542,408
Year 5 - 2019 2,932,795
1,600,000 1.10 years

Net Present Value

Factor
discounted
No. of Years Cash Flow at 0% NPV
Year 0 - 2014 (1,600,000) 1 (1,600,000)
Year 1 -2015 1,427,639 1 1,427,639
Year 2 - 2016 1,653,904 1 1,653,904
Year 3 - 2017 2,193,461 1 2,193,461
Year 4 - 2018 2,542,408 1 2,542,408
Year 5 - 2019 2,932,795 1 2,932,795
9,150,208

Internal Rate of Return

Year 0 - 2014 (1,600,000)
Year 1 -2015 1,427,639
Year 2 - 2016 1,653,904
Year 3 - 2017 2,193,461
Year 4 - 2018 2,542,408
Year 5 - 2019 2,932,795
103.10%