APPENDIX A

Micro Tiles Limited

Statements of Income

2011 2012 2013 2014

Revenue 1,083 1,058 1,564 2,052

Cost of sales
Purchases 369 355 630 825
Freight in 30 29 44 74
Labour 380 366 529 665
Depreciation/amortization 3 4 4 8
Other charges 5 0 0 0
Total cost of sales 787 754 1,207 1,572

Gross profit 296 304 357 480

Other income 0 0 0 0

Distribution costs
Salaries 34 37 41 65
Commissions 33 32 47 68
Travelling 12 11 16 32
Advertising 7 9 10 20
Depreciation/amortization 2 2 3 5
Other charges 10 0 0 0
Total distribution costs 98 91 117 190

Administrative expenses
Salaries 94 102 107 117
Leasing 20 20 26 31
Depreciation/amortization 13 9 24 30
Other charges 20 11 16 17
Total administrative expenses 147 142 173 195

Financing costs 3 7 14 34

Total expenses les other incom 248 240 304 419

Profit before taxes 48 64 53 61

Income tax expense 10 18 12 14

Profit for the year 38 46 41 47

 Micro Tiles Limited
Statements of Retained Earnings

2011 2012 2013 2014

Retained earnings (beginning of year) 87 125 171 212

Profit for the year 38 46 41 47
Sub-total 125 171 212 259
Dividends 0 0 0 0
Retained earnings (end of year) 125 171 212 259
 Micro Tiles Limited
Statements of Financial Position

2011 2012 2013 2014

Assets
Non-current assets
Property, plant and equipment 90 156 238 538
Goodwill 14 14 14 14
Due from shareholders 24 50 0 0
Sub-total 128 220 252 552
Accumulated depreciation/amortization 47 62 93 136

Total non-current assets 81 158 159 416

Current assets
Inventories 109 114 210 297
Trade receivables 247 241 298 400
Prepaid expenses 3 4 4 4
Short-term deposits 0 0 0 0
Cash 10 9 13 15
Total current assets 369 368 525 716

Total assets 450 526 684 1,132

Equity and Liabilities

Share capital 25 25 25 125
Retained earnings 125 171 212 259
Other comprehensive income/(loss) 0 0 0 0
Total owners' equity 150 196 237 384

Total long-term debts 63 51 74 300

Current liabilities
Trade and other payables 94 130 137 200
Notes payable 0 0 0 0
Working capital loan 85 106 198 208
Accruals 58 43 38 40
Total current liabilities 237 279 373 448

Total liabilities 300 330 447 748

Total equity and liabilities 450 526 684 1,132