Blue Green Feedmills, Inc.

Income Statement
For the year ended December 31, 2017 and 2016
(Amounts in Philippine Peso)
2017 2016
Note
Sales 215,089,549 150,078,403
Cost of goods sold 1 156,548,640 108,805,794
Gross profit 58,540,909 41,272,609
Other income – Interest earned from deposits 89,369 87,960
Total income 58,630,278 41,360,569
Expenses:
Distribution expenses 2 732,466 717,492
Administrative expenses 3 6,719,597 6,660,424
Total expenses 7,452,063 7,377,916
Profit from operations 51,178,215 33,982,653
Interest expense 2,257,505 1,728,210
Profit before tax 48,920,710 32,254,443
Provision for income tax 15,654,627 10,321,422
Net income for the year 33,266,083 21,933,021

Blue Green Feedmills, Inc.

Statement of Financial Position
As of December 31, 2017 and 2016
(Amounts in Philippine Peso)
2017 2016
Current assets: Note
Cash and cash equivalents 4 42,767,016 20,181,944
Financial assets 6,489,008 5,901,566
Receivables-trade 11,141,432 10,959,739
Receivables-others 5 311,889 104,087
Inventories 6 47,513,258 47,390,618
Prepaid expenses 62,468 83,071
Total current assets 108,285,071 84,621,025
Noncurrent assets:
Investments on equity instruments 22,900,160 10,860,000
Property and equipment, carrying value 7 34,309,144 27,410,489
Total noncurrent assets 57,209,304 38,270,489
TOTAL ASSETS 165,494,375 122,891,514

Current liabilities:
Accounts payable - Trade 32,575,993 28,812,807
Notes payable-current portion 10,652,063 4,945,580
Income tax payable 747,703 489,848
Withholding tax payable 85,866 51,077
SSS, PhilHealth, Pag-IBIG contributions payable 78,267 67,622
Total current liabilities 44,139,892 34,366,934
Noncurrent liabilities:
Notes payable 16,815,379 17,251,559
Total liabilities 60,955,271 51,618,493

Equity
Share capital (P1,000 par, 40,100 ordinary shares) 40,100,000 40,100,000
Cumulative earnings
Cumulative earnings, beginning 27,173,021 5,240,000
Net profit 33,266,083 21,933,021
Cumulative earnings, end 60,439,104 27,173,021
Cumulative earnings, appropriated 4,000,000 4,000,000
Total cumulative earnings 64,439,104 31,173,021
Total equity 104,539,104 71,273,021
TOTAL LIABILITIES AND EQUITY 165,494,375 122,891,514
0 0
Blue Green Feedmills, Inc.
Statement of Cash Flows
For the year ended December 31, 2017
(Amounts in Philippine Peso)

CASH FLOWS FROM OPERATING ACTIVITIES

Income after income tax 33,266,083
Add: Depreciation expense* 3,414,149
Operating income before working capital changes 36,680,232
Decrease/(increase) in:
Financial assets (587,442)
Receivables-trade (181,693)
Receivables-others (207,802)
Inventories (122,640)
Prepaid expenses 20,603
Increase/(decrease) in
Accounts Payable - Trade 3,763,186
Notes payable-current portion 5,706,483
Income tax payable 257,855
Withholding tax payable 34,789
SSS, Philhealth, Pag-IBIG Payable 10,645
Net cash provided by/(used in) operating activities 45,374,216
CASH FLOWS FROM INVESTING ACTIVITIES
Increase/(decrease) in:
Investments on equity instruments (12,040,160)
Net additions to property, plant, and equipment (10,312,804)
Net cash provided by/(used in) investing activities (22,352,964)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in:
Notes payable (436,180)
Net cash provided by/(used in) financing activities (436,180)
INCREASE (DECREASE) IN CASH 22,585,072
CASH, BEGINNING OF YEAR 20,181,944
CASH, END OF YEAR 42,767,016
0

Note 1 - Cost of Goods Sold

2017 2016
Raw materials:
Raw materials, beginning 9,263,109 10,333,277
Purchases 149,287,391 107,873,610
Raw materials available for use 158,550,500 118,206,887
Raw materials, end 8,681,969 9,263,109
Raw materials used 149,868,531 108,943,778
Direct labor:
Salaries, wages, and other benefits 1,875,030 2,013,798
SSS, PhilHealth, and PAG-IBIG contributions 164,316 165,804
Total direct labor 2,039,346 2,179,602
Manufacturing Overhead:
Production supplies 183,916 82,371
Light, power, and water 1,354,651 1,396,018
Fuel and lubricants 318,071 201,365
Laboratory fees 310,633 135,746
Security services 450,869 401,578
Repairs and maintenance 417,802 431,957
Transportation expense 53,381 52,647
Insurance 73,961 72,658
Depreciation-Land improvements 216,059 216,059
Depreciation-Factory buildings 1,240,200 1,051,620
Depreciation - Machineries and equipment 434,600 428,400
Depreciation – Miscellaneous equipment 290,400 285,849
Total manufacturing overhead 5,344,543 4,756,268
Total manufacturing cost 157,252,420 115,879,648
Finished goods, beginning 38,127,509 31,053,655
Goods available for sale 195,379,929 146,933,303
Finished goods, end 38,831,289 38,127,509
Cost of goods sold 156,548,640 108,805,794

Note 2 - Distribution Expenses

2017 2016
Delivery expenses 352,853 344,702
Depreciation-Delivery equipment 370,150 364,500
Publicity and promotion 9,463 8,290
Total Distribution Expenses 732,466 717,492

Note 3 - Administrative Expenses

2017 2016
Salaries, wages, and other benefits 1,534,115 1,647,653
SSS, PhilHealth, and PAG-IBIG contributions 133,465 135,658
Directors' fees and allowances 663,000 684,000
Bank service charges 26,931 16,381
Communication 53,316 128,301
Donations and contributions 60,000 35,000
Employees' welfare 412,650 381,753
Handling charges 501,561 495,579
Janitorial services 2,444 122,572
Light, power, and water 351,000 348,440
Office supplies 182,010 180,380
Professional and consultancy fees 386,111 329,444
Repairs and maintenance 188,483 174,268
Security services 264,796 234,422
Insurance expense 83,379 82,396
Representation 172,864 132,813
Travelling 98,563 32,658
Training and personnel development 245,043 102,650
Taxes and licenses 497,126 553,756
Depreciation-Office building 412,380 412,380
Depreciation - Office equipment 267,820 254,100
Depreciation - Furniture and fixtures 182,540 175,820
Total Administrative Expenses 6,719,597 6,660,424

Note 4 – Cash and Cash Equivalents

2017 2016
Cash on hand 1,215,473 389,878
Cash in bank 41,446,543 19,741,066
Petty cash fund 105,000 51,000
Cash and cash equivalents 42,767,016 20,181,944

Note 5 – Receivables-Others
2017 2016
Accounts receivable - Others 133,464 36,258
Advances to officers and employees 82,634 14,643
Advances to suppliers 95,791 53,186
Receivables-Others 311,889 104,087

Note 6 – Inventories
2017 2016
Finished goods 38,831,289 38,127,509
Raw materials 8,681,969 9,263,109
Inventories 47,513,258 47,390,618

Note 7 – Property and Equipment

2017 2016
Land 5,990,692 5,990,692
Land improvements 2,160,585 2,160,585
Accumulated Depreciation - Land improvements 976,644 760,585
Carrying amount 1,183,941 1,400,000
Factory building 14,200,400 10,516,321
Accumulated Depreciation - Factory Building 9,755,577 8,515,377
Carrying amount 4,444,823 2,000,944
Office building 5,223,846 4,123,846
Accumulated Depreciation - Office building 1,836,226 1,423,846
Carrying amount 3,387,620 2,700,000
Machineries and equipment 6,385,060 4,288,138
Accumulated Depreciation – Machineries and equipment 1,967,660 1,533,060
Carrying amount 4,417,400 2,755,078
Office equipment 5,587,223 3,307,223
Accumulated Depreciation - Office equipment 1,517,987 1,250,167
Carrying amount 4,069,236 2,057,056
Furniture and fixtures 2,678,040 2,342,440
Accumulated Depreciation - Furniture and fixtures 824,980 642,440
Carrying amount 1,853,060 1,700,000
Delivery equipment 12,485,500 11,829,162
Accumulated Depreciation - Delivery equipment 5,220,850 4,850,700
Carrying amount 7,264,650 6,978,462
Miscellaneous equipment 2,610,065 2,450,200
Accumulated Depreciation - Miscellaneous equipment 912,343 621,943
Carrying amount 1,697,722 1,828,257
Total property and equipment 34,309,144 27,410,489

Depreciation expense
Depreciation-Land improvements 216,059
Depreciation-Factory buildings 1,240,200
Depreciation - Machineries and equipment 434,600
Depreciation – Miscellaneous equipment 290,400
Depreciation-Delivery equipment 370,150
Depreciation-Office building 412,380
Depreciation - Office equipment 267,820
Depreciation - Furniture and fixtures 182,540
Total 3,414,149
Blue Green Feedmills, Inc.
Income Statement
For the year ended December 31, 2017 and 2016
Horizontal Analysis
2017 2016 Increase (Decrease)
Note Amount
Sales 215,089,549 150,078,403
Cost of goods sold 1 156,548,640 108,805,794
Gross profit 58,540,909 41,272,609
Other income – Interest earned from deposits 89,369 87,960
Total income 58,630,278 41,360,569
Expenses:
Distribution expenses 2 732,466 717,492
Administrative expenses 3 6,719,597 6,660,424
Total expenses 7,452,063 7,377,916
Profit from operations 51,178,215 33,982,653
Interest expense 2,257,505 1,728,210
Profit before tax 48,920,710 32,254,443
Provision for income tax 15,654,627 10,321,422
Net income for the year 33,266,083 21,933,021

Blue Green Feedmills, Inc.

Statement of Financial Position
As of December 31, 2017 and 2016

2017 2016
Current assets: Note
Cash and cash equivalents 4 42,767,016 20,181,944
Financial assets 6,489,008 5,901,566
Receivables-trade 11,141,432 10,959,739
Receivables-others 5 311,889 104,087
Inventories 6 47,513,258 47,390,618
Prepaid expenses 62,468 83,071
Total current assets 108,285,071 84,621,025
Noncurrent assets:
Investments on equity instruments 22,900,160 10,860,000
Property and equipment, carrying value 7 34,309,144 27,410,489
Total noncurrent assets 57,209,304 38,270,489
TOTAL ASSETS 165,494,375 122,891,514

Current liabilities:
Accounts payable - Trade 32,575,993 28,812,807
Notes payable-current portion 10,652,063 4,945,580
Income tax payable 747,703 489,848
Withholding tax payable 85,866 51,077
SSS, PhilHealth, Pag-IBIG contributions payable 78,267 67,622
Total current liabilities 44,139,892 34,366,934
Noncurrent liabilities:
Notes payable 16,815,379 17,251,559
Total liabilities 60,955,271 51,618,493

Equity
Share capital (P1,000 par, 40,100 ordinary shares) 40,100,000 40,100,000
Cumulative earnings
Cumulative earnings, beginning 27,173,021 5,240,000
Net profit 33,266,083 21,933,021
Cumulative earnings, end 60,439,104 27,173,021
Cumulative earnings, appropriated 4,000,000 4,000,000
Total cumulative earnings 64,439,104 31,173,021
Total equity 104,539,104 71,273,021
TOTAL LIABILITIES AND EQUITY 165,494,375 122,891,514
0 0
Horizontal Analysis Vertical Analysis
Increase (Decrease) 2016 2015
%
Sweet 16 Financial Analytical Ratios
2017 2016
A. LIQUIDITY
1 Working Capital Current Asset
Current Liabilities
Working Capital

2 Current Ratio Current Assets

Current Liabilities
Current Ratio

3 Quick (Acid-Test) Ratio Quick Assets

Current Liabilities
Quick Ratio
% %
Composition of Current Assets Cash and cash equivalents #DIV/0! #DIV/0!
Financial assets #DIV/0! #DIV/0!
Receivables-trade #DIV/0! #DIV/0!
Receivables-others #DIV/0! #DIV/0!
Inventories #DIV/0! #DIV/0!
Prepaid expenses #DIV/0! #DIV/0!
Total current assets #DIV/0! #DIV/0!

B. LEVERAGE
4 Debt Ratio Total Liabilities
Total Assets
Debt Ratio

5 Debt-Equity Ratio Total Liabilities

Total Equity
Debt-Equity Ratio

Conversion of Debt-Equity Ratio to Debt Ratio Debt-Equity Ratio

Divided by 1+Debt-Equity Ratio
 Debt Ratio

6 Interest coverage ratio Earnings before Interest and Taxes

(Times interest earned) Interest Expense
Interest Coverage Ratio

C. ACTIVITY (ASSET MANAGEMENT)

7 Accounts Receivable Turnover Net Sales
Average Accounts Receivable
AR Turnover

Accounts Receivable, Beginning

Accounts Receivable, Ending
Average Accounts Receivable

Average Collection Period 360

Accounts Receivable Turnover
Average Collection Period

8 Inventory Turnover Cost of Goods Sold

Average Inventory
Inventory Turnover (FG)

Inventory, Beginning
Inventory, Ending
Average Inventory

Cost of Raw Materials Used

Average Inventory
Inventory Turnover (RM)

Inventory, Beginning
Inventory, Ending
Average Inventory
 Inventory Conversion Period 360
(Average Age of Inventory) Inventory Turnover
Average Age of Inventory (FG)

360
Inventory Turnover
Average Age of Inventory (RM)

Normal Operating Cycle Average Collection Period

Inventory Conversion Period
Raw Materials Conversion Period
Operating Cycle

9 Accounts Payable Turnover Purchases

Average Accounts Payable
AP Turnover

Accounts Payable, Beginning

Accounts Payable, Ending
Average Accounts Payable

Average Payment Period 360

(Payable Deferral Period) AP Turnover
Average Payment Period

Cash Conversion Cycle Normal Operating Cycle

Less: Payable Deferral Period
Cash Conversion Cycle

10 Asset Turnover Net Sales

Assets*
Asset Turnover
*Alternative is average assets
D. PROFITABILITY

11 Gross Profit Percentage Gross Profit

Net Sales
Gross Profit Percentage

12 Net Profit Percentage (Return on Sales) Net Profit (Income)

Net Sales
NP Percentage

13 Return on Assets Net Profit (Income)*

Total Assets
ROA
*Alternative is Profit before interest but after tax

14 Return on Equity Net Profit (Income)

Shareholders' Equity
ROE

15 Earnings per Share Net Profit (Income)

Average number of shares
Earnings per Share

E. MARKETABILITY

16 Price-Earnings Ratio Current Share Price

Earnings per Share
Price-Earnings Ratio