Appendix 1

Pro-forma Income Statement

MAGNUM

INCORPORATED

Pro-forma Income Statement
For the period from Year 1 to Year 5
Year 1
Gross Sales Revenue

Year 2

Year 3

Year 4

Year 5

6,452,209.75

6,509,447.48

7,214,392.09

8,134,658.60

8,883,124.42

691,308.19

697,440.80

772,970.58

871,570.56

951,763.33

Net Sales Revenue

5,760,901.56

5,812,006.68

6,441,421.51

7,263,088.04

7,931,361.09

Cost of Sales

2,327,114.13

2,705,377.35

2,827,743.43

3,302,817.11

3,204,263.05

Gross Income

3,433,787.43

3,106,629.33

3,613,678.08

3,960,270.93

4,727,098.04

Less: Operating Expenses
Advertising Expense
Depreciation Expense
Repairs & Maintainance
Rent Expense
Salaries and Wages
SSS Contribution
Phil Health/Medicare
Employee Benefits
Utilities Expense
Supplies Expense
Miscellaneous Expense
Amortization Expense
Total Operating Expenses

115,218.03
137,029.41
35,000.00
471,000.00
1,680,000.00
96,201.60
21,000.00
140,000.00
257,142.86
16,501.03
7,372.00
2,335.20
2,978,800.13

116,240.13
137,029.41
35,000.00
506,325.00
1,680,000.00
96,201.60
21,000.00
140,000.00
262,285.71
16,501.03
7,372.00
2,335.20
3,017,954.89

128,828.43
134,029.41
35,000.00
544,299.38
1,730,400.00
96,565.20
21,000.00
144,200.00
267,531.43
12,818.66
7,372.00
2,335.20
3,122,044.51

145,261.76
134,029.41
35,000.00
585,121.83
1,730,400.00
96,565.20
21,000.00
144,200.00
272,882.06
12,818.66
7,372.00
2,335.20
3,184,650.92

158,627.22
134,029.41
35,000.00
629,005.96
1,782,312.00
99,110.40
21,000.00
148,526.00
278,339.70
12,818.66
7,372.00
2,335.20
3,306,141.35

Operating Income
Less: Interest Expense (16%)

454,987.30
72,797.97

88,674.44
14,187.91

491,633.58
78,661.37

775,620.01
124,099.20

1,420,956.69
227,353.07

Earnings before Tax
Less: Income Tax (32%)

382,189.33
122,300.59

74,486.53
23,835.69

412,972.20
132,151.11

651,520.81
208,486.65

1,193,603.62
381,953.16

Net Income

259,888.75

50,650.84

280,821.10

443,034.16

811,650.46

VAT Output Tax (12%)

Pro Forma Income Statement
Page 1 of 30

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

9,826,145.99

10,475,698.20

12,152,156.07

12,468,776.59

14,033,552.17

VAT Output Tax (12%)

1,052,801.36

1,122,396.24

1,302,016.72

1,335,940.35

1,503,594.88

Net Sales Revenue

8,773,344.63

9,353,301.97

10,850,139.35

11,132,836.24

12,529,957.30

Cost of Sales

3,613,582.34

3,781,551.76

4,374,788.59

4,438,733.42

4,979,744.44

Gross Income

5,159,762.29

5,571,750.20

6,475,350.75

6,694,102.83

7,550,212.86

Less: Operating Expenses
Advertising Expense
Depreciation Expense
Repairs & Maintainance
Rent Expense
Salaries and Wages
SSS Contribution
Phil Health/Medicare
Employee Benefits
Utilities Expense
Supplies Expense
Miscellaneous Expense
Amortization Expense
Total Operating Expenses

175,466.90
134,029.41
35,000.00
676,181.42
1,782,312.00
99,110.40
21,000.00
148,526.00
283,906.48
12,818.66
7,372.00
3,375,723.27

187,066.04
134,029.41
35,000.00
726,895.02
1,835,781.36
99,475.20
21,600.00
152,981.78
289,584.62
12,818.66
7,372.00
3,502,604.09

217,002.79
134,029.41
35,000.00
781,412.14
1,835,781.36
99,475.20
21,600.00
152,981.78
295,376.31
12,818.66
7,372.00
3,592,849.66

222,656.72
134,029.41
35,000.00
840,018.06
1,890,854.80
102,024.00
21,750.00
157,571.23
301,283.84
12,818.66
7,372.00
3,725,378.73

250,599.15
134,029.41
35,000.00
903,019.41
1,890,854.80
102,024.00
21,750.00
157,571.23
307,309.52
12,818.66
7,372.00
3,822,348.18

Operating Income
Less: Interest Expense (16%)

1,784,039.02
-

2,069,146.11
-

2,882,501.09
-

2,968,724.10
-

3,727,864.67
-

Earnings before Tax
Less: Income Tax (32%)

1,784,039.02
570,892.49

2,069,146.11
662,126.76

2,882,501.09
922,400.35

2,968,724.10
949,991.70

3,727,864.67
1,192,916.70

Net Income

1,213,146.54

1,407,019.35

1,960,100.74

1,918,732.39

2,534,947.98

Pro Forma Income Statement
Page 2 of 30

Appendix 1
Pro-forma Income Statement

137029.41

Pro Forma Income Statement
Page 3 of 30

APPENDIX 2
PRO-FORMA BALANCE SHEET

MAGNUM

INCORPORATED

Pro-forma Balance Sheet
As of December 31, Year 0 to Year 10
Y E A R
0
ASSETS
Currents Assets
Cash
Inventory
Supplies on Hand
Prepaid Expense
Total Current Assets
Fixed Assets
Land
Office Assets
Store Assets
Plant and Plant Assets
Vehicle
Total Fixed Assets
Less: Accumulated Depreciation
Total Fixed Assets
Intangibles
Leasehold Improvement
Less: Accumulated Depreciation
Other Assets
Less: Amortization
Total Intangibles

TOTAL ASSETS

1

102,089.74
23,768.79
18,481.15
482,404.80
626,744.48

488,134.94
848,568.74
1,238.75
1,337,942.43

2

3

4

5

1,326,578.29
160,287.19
1,238.75

1,358,081.73
691,829.74
1,238.75

2,540,573.94
234,710.03
1,238.75

1,463,400.32
489,740.27
1,238.75

1,488,104.23

2,051,150.22

2,776,522.72

1,954,379.34

550,000.00
550,000.00
550,000.00
550,000.00
550,000.00
550,000.00
91,700.00 91,700.00
91,700.00
91,700.00
91,700.00
90,500.00
34,200.00
34,200.00
24,200.00
34,200.00
24,200.00
33,000.00
403,422.47
403,422.47
403,422.47
403,422.47
403,422.47
392,722.47
800,000.00
800,000.00
800,000.00
800,000.00
800,000.00
800,000.00
1,879,322.47
1,879,322.47
1,869,322.47
1,879,322.47
1,869,322.47
1,866,222.47
134,029.41
268,058.83
392,088.24
526,117.65
650,147.07
1,879,322.47
1,745,293.06
1,601,263.64
1,487,234.23
1,343,204.82
1,216,075.40

477,381.00
11,676.00
489,057.00

477,381.00
47,738.10
11,676.00
2,335.20
438,983.70

477,381.00
95,476.20
11,676.00
4,670.40
388,910.40

477,381.00
143,214.30
11,676.00
7,005.60
338,837.10

477,381.00
190,952.40
11,676.00
9,340.80
288,763.80

477,381.00
238,690.50
11,676.00
11,676.00
238,690.50

2,995,123.95

3,522,219.19

3,478,278.27

3,877,221.55

4,408,491.34

3,409,145.24

43,960.00
24,000.00
27,935.50
49,010.40
122,300.59

47,257.00
24,480.00
27,935.50
49,106.55
23,835.69

50,801.27
24,969.60
27,935.50
54,879.44
132,151.11

54,611.37
25,468.99
27,935.50
62,470.04
208,486.66

267,206.49

172,614.74

290,736.92

378,972.56

58,707.22
25,978.37
27,935.50
68,525.70
381,953.16
100,000.00
663,099.95

LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Rent Payable
Utilities Payable
Interest Payable
VAT Output Tax Payable
Income Tax Payable
Dividends Payable
Total Current Liabilities

-

Long-term Liabilities
Long-term loan

2,095,123.95

2,095,123.95

2,095,123.95

2,095,123.95

2,095,123.95

TOTAL LIABILITIES

2,095,123.95

2,362,330.44

2,267,738.69

2,385,860.87

2,474,096.51

663,099.95

900,000.00
-

900,000.00
259,888.75

900,000.00
310,539.58

900,000.00
591,360.68

900,000.00
1,034,394.83

900,000.00
1,846,045.29

2,995,123.95

1,159,888.75

1,210,539.58

1,491,360.68

1,934,394.83

2,746,045.29

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
2,995,123.95

3,522,219.19

3,478,278.27

3,877,221.55

4,408,491.34

3,409,145.24

Stockholder's Equity
Capital Stock (P10 par value)
Retained Earnings
TOTAL STOCKHOLDER'S EQUITY

-

APPENDIX 2
PRO-FORMA BALANCE SHEET

MAGNUM

INCORPORATED

Pro-forma Balance Sheet
As of December 31, Year 0 to Year 10
6
ASSETS
Currents Assets
Cash
Inventory
Supplies on Hand
Prepaid Expense
Total Current Assets
Fixed Assets
Land
Office Assets
Store Assets
Plant and Plant Assets
Vehicle
Total Fixed Assets
Less: Accumulated Depreciation
Total Fixed Assets
Intangibles
Leasehold Improvement
Less: Accumulated Depreciation
Other Assets
Less: Amortization
Total Intangibles

TOTAL ASSETS

YEAR
8

7

9

10

3,213,202.51
192,302.58
1,238.75

4,620,331.25
355,577.89
1,238.75

7,283,196.99
24,548.71
1,238.75

9,216,291.55
207,691.98
1,238.75

12,283,232.80
35,835.25
1,238.75

3,406,743.84

4,977,147.89

7,308,984.45

9,425,222.28

12,320,306.80

550,000.00
550,000.00
550,000.00
550,000.00
550,000.00
91,700.00
91,700.00
91,700.00
91,700.00
91,700.00
24,200.00
34,200.00
24,200.00
34,200.00
24,200.00
403,422.47
403,422.47
403,422.47
403,422.47
403,422.47
800,000.00
800,000.00
800,000.00
800,000.00
800,000.00
1,869,322.47
1,879,322.47
1,869,322.47
1,879,322.47
1,869,322.47
771,076.48
895,105.90
1,029,135.31
1,153,164.72
1,293,194.14
1,098,245.99
984,216.57
840,187.16
726,157.75
576,128.33

477,381.00
286,428.60

477,381.00
334,166.70

477,381.00
381,904.80

477,381.00
429,642.90

477,381.00
477,381.00

190,952.40

143,214.30

95,476.20

47,738.10

4,695,942.23

6,104,578.76

8,244,647.81

10,199,118.13

12,896,435.13

63,110.26
26,497.94
76,249.71
570,892.49
100,000.00
836,750.40

67,843.54
27,027.90
81,369.38
662,126.76
100,000.00
938,367.58

72,931.80
27,568.46
95,435.29
922,400.35
100,000.00
1,218,335.90

78,401.69
28,119.83
97,560.59
949,991.71
100,000.00
1,254,073.82

84,281.81
28,682.22
110,562.11
1,192,916.70
100,000.00
1,516,442.84

-

LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Rent Payable
Utilities Payable
Interest Payable
VAT Output Tax Payable
Income Tax Payable
Dividends Payable
Total Current Liabilities
Long-term Liabilities
Long-term loan
TOTAL LIABILITIES

-

-

-

-

-

836,750.40

938,367.58

1,218,335.90

1,254,073.82

1,516,442.84

Stockholder's Equity
Capital Stock (P10 par value)
Retained Earnings

900,000.00
2,959,191.83

900,000.00
4,266,211.18

900,000.00
6,126,311.92

900,000.00
8,045,044.31

900,000.00
10,479,992.29

TOTAL STOCKHOLDER'S EQUITY

3,859,191.83

5,166,211.18

7,026,311.92

8,945,044.31

11,379,992.29

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

4,695,942.23

6,104,578.76

8,244,647.82

10,199,118.13

12,896,435.13

Appendix 3
Statement of Cash Flows

MAGNUM

INCORPORATED

Pro-forma Statement of Cash Flows
For the period from Year 1 to Year 5
Year 1
Cash Flows from Operating Activities
Net Income
Increase (Decrease) in Depreciation - Fixed Assets
Increase (Decrease) in Depreciation - Leasehold Improvements
Increase (Decrease) in Amortization - Amortization
Increase (Decrease) in Inventory
Increase (Decrease) in Supplies On Hand
Increase (Decrease) in Prepaid Expense
Increase (Decrease) in Rent Payable
Increase (Decrease) in Utilities Payable
Increase (Decrease) in Interest Payable
Increase (Decrease) in Dividends Payable
Increase (Decrease) in VAT Output Tax Payable
Increase (Decrease) in Income Tax Payable
Net Cash Provided by Operating Activities
Cash Flows from Investing and Financing Activities
Acquisition of Office Assets
Acquisition of Store Assets
Acquisition of Pland and Plant Assets
Increase (Decrease) in Long-term Loan
Dividends Paid
Net Cash Provided by Investing and Financing Activities

Year 2

Year 3

Year 4

Year 5

259,888.75
134,029.41
47,738.10
2,335.20
(824,799.95)
17,242.40
482,404.80
43,960.00
24,000.00
27,935.50

50,650.84
134,029.41
47,738.10
2,335.20
688,281.55
3,297.00
480.00
(0.00)

280,821.10
124,029.41
47,738.10
2,335.20
(531,542.55)
3,544.27
489.60
-

443,034.16
134,029.41
47,738.10
2,335.20
457,119.71
3,810.10
499.39
0.00

49,010.40
122,300.59
386,045.20

96.15
(98,464.90)
828,443.35

5,772.89
108,315.42
41,503.43

7,590.60
76,335.55
1,172,492.22

10,000.00
-

(10,000.00)
-

10,000.00
-

10,000.00

(10,000.00)

10,000.00

1,200.00
(8,800.00)
10,700.00
(2,095,123.95)
(2,092,023.95)

-

811,650.46
124,029.41
47,738.10
2,335.20
(255,030.24)
4,095.85
509.38
100,000.00
6,055.66
173,466.50
1,014,850.32

Increase (Decrease) in Cash

386,045.20

838,443.35

31,503.43

1,182,492.22

(1,077,173.63)

Add: Cash - Beginning

102,089.74

488,134.94

1,326,578.29

1,358,081.73

2,540,573.94

Cash Balance - End

488,134.94

1,326,578.29

1,358,081.73

2,540,573.94

1,463,400.32

Appendix 3
Statement of Cash Flows

MAGNUM

INCORPORATED

Pro-forma Statement of Cash Flows
For the period from Year 6 to Year 10

Cash Flow from Operating Activities
Net Income
Increase (Decrease) in Depreciation - Fixed Assets
Increase (Decrease) in Depreciation - Leasehold Improvements
Increase (Decrease) in Amortization - Amortization
Increase (Decrease) in Inventory
Increase (Decrease) in Supplies On Hand
Increase (Decrease) in Prepaid Expense
Increase (Decrease) in Rent Payable
Increase (Decrease) in Utilities Payable
Increase (Decrease) in Interest Payable
Increase (Decrease) in Dividends Payable
Increase (Decrease) in VAT Output Tax Payable
Increase (Decrease) in Income Tax Payable
Net Cash Flow Provided by Operating Activities
Cash Flow from Financing and Investing Activities
Acquisition of Office Assets
Acquisition of Store Assets
Acquisition of Pland and Plant Assets
Increase (Decrease) in Long-term Loan
Dividends Paid
Net Cash Provided by Financing and Investing Activities
Increase (Decrease) in Cash

Cash Balance End

Year 6

Year 7

Year 8

Year 9

Year 10

1,113,146.54
120,929.41
47,738.10
297,437.69
4,403.04
519.57
(27,935.50)
100,000.00
7,724.01
188,939.33
1,852,902.19

1,307,019.35
124,029.41
47,738.10
(163,275.29)
4,733.28
529.96
100,000.00
5,119.66
91,234.27
1,517,128.74

1,860,100.74
134,029.41
47,738.10

1,918,732.39
124,029.41
47,738.10

2,434,947.98
140,029.42
47,738.10

331,029.18
5,088.26
540.56
100,000.00
14,065.91
260,273.59
2,752,865.75

(183,143.27)
5,469.89
551.37
100,000.00
2,125.30
27,591.36
2,043,094.55

171,856.73
5,880.12
562.39
100,000.00
13,001.52
242,924.99
3,156,941.25

(1,200.00)
8,800.00
(10,700.00)

10,000.00
-

(10,000.00)
-

10,000.00
-

(100,000.00)
(103,100.00)

(10,000.00)
(100,000.00)
(110,000.00)

(100,000.00)
(90,000.00)

(100,000.00)
(110,000.00)

(100,000.00)
(90,000.00)

1,749,802.19

1,407,128.74

2,662,865.75

1,933,094.55

3,066,941.25

1,463,400.32

3,213,202.51

4,620,331.25

7,283,197.00

9,216,291.55

3,213,202.51

4,620,331.25

7,283,197.00

9,216,291.55

12,283,232.80

43,793,024.32

Appendix 3
Statement of Cash Flows

Appendix 4
Retained Earnings Schedule

MAGNUM

INCORPORATED

Pro-forma Statement of Retained Earnings
For the period from Year 1 to Year 10
Year 1

Retained Earnings - Beginning

Year 2

-

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

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
Dividends Declared During the Year

259,888.75
-

50,650.84
-

280,821.10
-

443,034.16
-

811,650.46
-

1,213,146.54
100,000.00

1,407,019.35
100,000.00

1,960,100.74
100,000.00

1,918,732.39
100,000.00

2,534,947.98
100,000.00

Retained Earnings - Ending

259,888.75

310,539.58

591,360.68

1,034,394.82

1,846,045.29

2,959,191.83

4,266,211.18

6,126,311.92

8,045,044.31

10,479,992.29

Appendix 4
Retained Earnings Schedule

Appendix 4
Retained Earnings Schedule

137029.41

Appendix 4
Schedule of Depreciation of Fixed Assets

Magnum Inc.
Schedule of Depreciation of Fixed Assets
Years 1-3
Cost
Office Assets
Equipment
4-in-1 office machine
Personal Computer
Fire Extinguisher
Furnitures and Fixtures
Chairs,Tables (set of 8)
Filing Cabinets
Store Assets
Equipment
Point of Sale System
Display Materials
Fire Extinguisher
Plant Assets
Equipment
Small UV Exposure Unit 20x24
4 Color 4 Station Manual Press
Fire Extinguisher
Paint Curing Machine
Furniture and Fixtures
Storage Cabinets
Long Wood Tables
Plant Building
Plant Improvements
Vehicle
Intangibles:
Leasehold Improvements
Total Accumulated Depreciation-Fixed Assets
Total Depreciation Expense

Year 1
Year 2
Useful Life Dep'n Expense Accu. Dep'n Carrying ValueDep'n Expense Accu. Dep'n

Year 3
Carrying ValueDep'n Expense Accu. Dep'n

Carrying Value

15,000.00
50,000.00
1,200.00

10
10
5

1,500.00
5,000.00
240.00

1,500.00
5,000.00
240.00

13,500.00
45,000.00
960.00

1,500.00
5,000.00
240.00

3,000.00
10,000.00
480.00

12,000.00
40,000.00
720.00

1,500.00
5,000.00
240.00

4,500.00
15,000.00
720.00

10,500.00
35,000.00
480.00

21,000.00
4,500.00

10
10

2,100.00
450.00

2,100.00
450.00

18,900.00
4,050.00

2,100.00
450.00

4,200.00
900.00

16,800.00
3,600.00

2,100.00
450.00

6,300.00
1,350.00

14,700.00
3,150.00

17,000.00
10,000.00
1,200.00

10
2
5

1,700.00
5,000.00
240.00

1,700.00
5,000.00
240.00

15,300.00
5,000.00
960.00

1,700.00
5,000.00
240.00

3,400.00
10,000.00
480.00

13,600.00
720.00

1,700.00
5,000.00

5,100.00
5,000.00

11,900.00
5,000.00

13,037.47
108,385.00
1,200.00
5,500.00

10
15
5
5

1,303.75
7,225.67
240.00
1,100.00

1,303.75
7,225.67
240.00
1,100.00

11,733.72
101,159.33
960.00
4,400.00

1,303.75
7,225.67
240.00
1,100.00

2,607.49
14,451.33
480.00
2,200.00

10,429.98
93,933.67
720.00
3,300.00

1,303.75
7,225.67
240.00
1,100.00

3,911.24
21,677.00
720.00
3,300.00

9,126.23
86,708.00
480.00
2,200.00

5
10
10
10
10

800.00
150.00
25,000.00
1,980.00
80,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

3,200.00
1,350.00
225,000.00
17,820.00
720,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

1,600.00
300.00
50,000.00
3,960.00
160,000.00

2,400.00
1,200.00
200,000.00
15,840.00
640,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

2,400.00
450.00
75,000.00
5,940.00
240,000.00

1,600.00
1,050.00
175,000.00
13,860.00
560,000.00

10

47,738.10

47,738.10
134,029.41
134,029.41

429,642.90

47,738.10

95,476.20

381,904.80
268,058.83

47,738.10

143,214.30

334,166.70
392,088.24

4,000.00
1,500.00
250,000.00
19,800.00
800,000.00
477,381.00

134,029.41

134,029.41

Appendix 4
Schedule of Depreciation of Fixed Assets

Magnum Inc.
Schedule of Depreciation of Fixed Assets
Years 4-6
Cost
Office Assets
Equipment
4-in-1 office machine
Personal Computer
Fire Extinguisher
Furnitures and Fixtures
Chairs,Tables (set of 8)
Filing Cabinets
Store Assets
Equipment
Point of Sale System
Display Materials
Fire Extinguisher
Plant Assets
Equipment
Small UV Exposure Unit 20x24
4 Color 4 Station Manual Press
Fire Extinguisher
Paint Curing Machine
Furniture and Fixtures
Storage Cabinets
Long Wood Tables
Plant Building
Plant Improvements
Vehicle
Intangibles:
Leasehold Improvements
Total Accumulated Depreciation-Fixed Assets
Total Depreciation Expense

Year 4
Useful Life Dep'n Expense Accu. Dep'n

Year 5
Carrying ValueDep'n Expense Accu. Dep'n

Year 6
Carrying ValueDep'n Expense Accu. Dep'n

Carrying Value

15,000.00
50,000.00
1,200.00

10
10
5

1,500.00
5,000.00
240.00

6,000.00
20,000.00
960.00

9,000.00
30,000.00
240.00

1,500.00
5,000.00
240.00

1,500.00
5,000.00
240.00

13,500.00
45,000.00
960.00

1,500.00
5,000.00
240.00

9,000.00
30,000.00
240.00

6,000.00
20,000.00
960.00

21,000.00
4,500.00

10
10

2,100.00
450.00

8,400.00
1,800.00

12,600.00
2,700.00

2,100.00
450.00

2,100.00
450.00

18,900.00
4,050.00

2,100.00
450.00

12,600.00
2,700.00

8,400.00
1,800.00

17,000.00
10,000.00
1,200.00

10
2
5

1,700.00
5,000.00

6,800.00
10,000.00

10,200.00
-

1,700.00
5,000.00

8,500.00
5,000.00

8,500.00
5,000.00

1,700.00
5,000.00

10,200.00
10,000.00

6,800.00
-

13,037.47
108,385.00
1,200.00
5,500.00

10
15
5
5

1,303.75
7,225.67
240.00
1,100.00

5,214.99
28,902.67
960.00
4,400.00

7,822.48
79,482.33
240.00
1,100.00

1,303.75
7,225.67
240.00
1,100.00

6,518.74
36,128.33
1,200.00
5,500.00

6,518.74
72,256.67
-

1,303.75
7,225.67
240.00
1,100.00

7,822.48
43,354.00
240.00
1,100.00

5,214.99
65,031.00
960.00
4,400.00

5
10
10
10
10

800.00
150.00
25,000.00
1,980.00
80,000.00

3,200.00
600.00
100,000.00
7,920.00
320,000.00

800.00
900.00
150,000.00
11,880.00
480,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

4,000.00
750.00
125,000.00
9,900.00
400,000.00

750.00
125,000.00
9,900.00
400,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

800.00
900.00
150,000.00
11,880.00
480,000.00

3,200.00
600.00
100,000.00
7,920.00
320,000.00

10

47,738.10

190,952.40

286,428.60
526,117.65

47,738.10

238,690.50

238,690.50
650,147.07

47,738.10

286,428.60

190,952.40
771,076.48

4,000.00
1,500.00
250,000.00
19,800.00
800,000.00
477,381.00

134,029.41

134,029.41

134,029.41

Appendix 4
Schedule of Depreciation of Fixed Assets

Magnum Inc.
Schedule of Depreciation of Fixed Assets
Years 7-10
Cost
Office Assets
Equipment
4-in-1 office machine
Personal Computer
Fire Extinguisher
Furnitures and Fixtures
Chairs,Tables (set of 8)
Filing Cabinets
Store Assets
Equipment
Point of Sale System
Display Materials
Fire Extinguisher
Plant Assets
Equipment
Small UV Exposure Unit 20x24
4 Color 4 Station Manual Press
Fire Extinguisher
Paint Curing Machine
Furniture and Fixtures
Storage Cabinets
Long Wood Tables
Plant Building
Plant Improvements
Vehicle
Intangibles:
Leasehold Improvements
Total Accumulated Depreciation-Fixed Assets
Total Depreciation Expense

Year 7
Useful Life Dep'n Expense Accu. Dep'n

Year 8
Carrying ValueDep'n Expense Accu. Dep'n

Year 9
Carrying ValueDep'n Expense Accu. Dep'n

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

Carrying Value

15,000.00
50,000.00
1,200.00

10
10
5

1,500.00
5,000.00
240.00

10,500.00
35,000.00
480.00

4,500.00
15,000.00
720.00

1,500.00
5,000.00
240.00

12,000.00
40,000.00
720.00

3,000.00
10,000.00
480.00

1,500.00
5,000.00
240.00

13,500.00
45,000.00
960.00

1,500.00
5,000.00
240.00

1,500.00
5,000.00
240.00

15,000.00
50,000.00
1,200.00

-

21,000.00
4,500.00

10
10

2,100.00
450.00

14,700.00
3,150.00

6,300.00
1,350.00

2,100.00
450.00

16,800.00
3,600.00

4,200.00
900.00

2,100.00
450.00

18,900.00
4,050.00

2,100.00
450.00

2,100.00
450.00

21,000.00
4,500.00

-

17,000.00
10,000.00
1,200.00

10
2
5

1,700.00
5,000.00

11,900.00
5,000.00

5,100.00
5,000.00

1,700.00
5,000.00

13,600.00
10,000.00

3,400.00
-

1,700.00
5,000.00

15,300.00
5,000.00

1,700.00
5,000.00

1,700.00
5,000.00
6,000.00

17,000.00
10,000.00
6,000.00

-

13,037.47
108,385.00
1,200.00
5,500.00

10
15
5
5

1,303.75
7,225.67
240.00
1,100.00

9,126.23
50,579.67
480.00
2,200.00

3,911.24
57,805.33
720.00
3,300.00

1,303.75
7,225.67
240.00
1,100.00

10,429.98
57,805.33
720.00
3,300.00

2,607.49
50,579.67
480.00
2,200.00

1,303.75
7,225.67
240.00
1,100.00

11,733.72
65,031.00
960.00
4,400.00

1,303.75
43,354.00
240.00
1,100.00

1,303.75
7,225.67
240.00
1,100.00

13,037.47
72,256.67
1,200.00
5,500.00

5
10
10
10
10

800.00
150.00
25,000.00
1,980.00
80,000.00

1,600.00
1,050.00
175,000.00
13,860.00
560,000.00

2,400.00
450.00
75,000.00
5,940.00
240,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

2,400.00
1,200.00
200,000.00
15,840.00
640,000.00

1,600.00
300.00
50,000.00
3,960.00
160,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

3,200.00
1,350.00
225,000.00
17,820.00
720,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

800.00
150.00
25,000.00
1,980.00
80,000.00

4,000.00
1,500.00
250,000.00
19,800.00
800,000.00

10

47,738.10

334,166.70

143,214.30
895,105.90

47,738.10

381,904.80

95,476.20
1,029,135.31

47,738.10

429,642.90

47,738.10
1,153,164.72

47,738.10

4,000.00
1,500.00
250,000.00
19,800.00
800,000.00
477,381.00

134,029.41

134,029.41

134,029.41

477,381.00
134,029.41

36,128.33
1,293,194.14

Appendix 5
Schedule of Salary and Benefits

MAGNUM INC.
SALARY AND BENEFITS SCHEDULE
YEAR 1
ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
25,000.00
300,000.00
300,000.00
Sales and Marketing Manager
1
15,000.00
180,000.00
180,000.00
Finance Manager
1
15,000.00
180,000.00
180,000.00
Production/Purchasing Manager
1
15,000.00
180,000.00
180,000.00
Human Resource Manager
1
15,000.00
180,000.00
180,000.00
Accountant
1
9,000.00
108,000.00
108,000.00
Cashier
1
7,000.00
84,000.00
84,000.00
Sales Personnel
2
7,000.00
84,000.00
168,000.00
Production Staff
3
6,000.00
72,000.00
216,000.00
Design Staff
1
7,000.00
84,000.00
84,000.00
PAYABLE AT YEAR END

1,680,000.00

YEAR 2

ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
25,000.00
300,000.00
300,000.00
Sales and Marketing Manager
1
15,000.00
180,000.00
180,000.00
Finance Manager
1
15,000.00
180,000.00
180,000.00
Production/Purchasing Manager
1
15,000.00
180,000.00
180,000.00
Human Resource Manager
1
15,000.00
180,000.00
180,000.00
Accountant
1
9,000.00
108,000.00
108,000.00
Cashier
1
7,000.00
84,000.00
84,000.00
Sales Personnel
2
7,000.00
84,000.00
168,000.00
Production Staff
3
6,000.00
72,000.00
216,000.00
Design Staff
1
7,000.00
84,000.00
84,000.00
PAYABLE AT YEAR END

ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
25,750.00
309,000.00
309,000.00
Sales and Marketing Manager
1
15,450.00
185,400.00
185,400.00
Finance Manager
1
15,450.00
185,400.00
185,400.00
Production/Purchasing Manager
1
15,450.00
185,400.00
185,400.00
Human Resource Manager
1
15,450.00
185,400.00
185,400.00
Accountant
1
9,270.00
111,240.00
111,240.00
Cashier
1
7,210.00
86,520.00
86,520.00
Sales Personnel
2
7,210.00
86,520.00
173,040.00
Production Staff
3
6,180.00
74,160.00
222,480.00
Design Staff
1
7,210.00
86,520.00
86,520.00
PAYABLE AT YEAR END

ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
26,522.50
318,270.00
318,270.00
Sales and Marketing Manager
1
15,913.50
190,962.00
190,962.00
Finance Manager
1
15,913.50
190,962.00
190,962.00
Production/Purchasing Manager
1
15,913.50
190,962.00
190,962.00
Human Resource Manager
1
15,913.50
190,962.00
190,962.00
Accountant
1
9,548.10
114,577.20
114,577.20
Cashier
1
7,426.30
89,115.60
89,115.60
Sales Personnel
2
7,426.30
89,115.60
178,231.20
Production Staff
3
6,365.40
76,384.80
229,154.40
Design Staff
1
7,426.30
89,115.60
89,115.60

PHILHEALTH CONTRIBUTION
MONTHLY
ANNUALLY
TOTAL
11,040.00
312.50
3,750.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
6,672.00
112.50
1,350.00
5,216.40
87.50
1,050.00
10,432.80
87.50
1,050.00
13,464.00
75.00
900.00
5,216.40
87.50
1,050.00

11,040.00
11,040.00
11,040.00
11,040.00
11,040.00
7,035.60
5,216.40
10,432.80
13,464.00
5,216.40

PHILHEALTH CONTRIBUTION
ANNUALLY
TOTAL
312.50
3,750.00
187.50
2,250.00
187.50
2,250.00
187.50
2,250.00
187.50
2,250.00
112.50
1,350.00
87.50
1,050.00
87.50
1,050.00
75.00
900.00
87.50
1,050.00

1,782,312.00

13TH MONTH PAY
ANNUALLY
TOTAL
25,000.00
25,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
9,000.00
9,000.00
7,000.00
7,000.00
7,000.00
14,000.00
6,000.00
18,000.00
7,000.00
7,000.00

21,000.00

140,000.00

99,110.40

140,000.00

13TH MONTH PAY
ANNUALLY
TOTAL
3,750.00
25,750.00
25,750.00
2,250.00
15,450.00
15,450.00
2,250.00
15,450.00
15,450.00
2,250.00
15,450.00
15,450.00
2,250.00
15,450.00
15,450.00
1,350.00
9,270.00
9,270.00
1,050.00
7,210.00
7,210.00
2,100.00
7,210.00
14,420.00
2,700.00
6,180.00
18,540.00
1,050.00
7,210.00
7,210.00

1,937,201.60

144,200.00

1,937,201.60

214,140.00
214,140.00
128,895.60
99,996.40
199,992.80
257,184.00

1,992,165.20

13TH MONTH PAY
ANNUALLY
TOTAL
3,750.00
25,750.00
25,750.00
2,250.00
15,450.00
15,450.00
2,250.00
15,450.00
15,450.00
2,250.00
15,450.00
15,450.00
2,250.00
15,450.00
15,450.00
1,350.00
9,270.00
9,270.00
1,050.00
7,210.00
7,210.00
2,100.00
7,210.00
14,420.00
2,700.00
6,180.00
18,540.00
1,050.00
7,210.00
7,210.00
21,000.00

PHILHEALTH CONTRIBUTION
MONTHLY
ANNUALLY
TOTAL
11,040.00
312.50
3,750.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
7,035.60
112.50
1,350.00
5,580.00
87.50
1,050.00
11,160.00
87.50
1,050.00
14,554.80
75.00
900.00
5,580.00
87.50
1,050.00

TOTAL PAYABLE
AT YEAR END

13TH MONTH PAY
ANNUALLY
TOTAL
3,750.00
25,000.00
25,000.00
2,250.00
15,000.00
15,000.00
2,250.00
15,000.00
15,000.00
2,250.00
15,000.00
15,000.00
2,250.00
15,000.00
15,000.00
1,350.00
9,000.00
9,000.00
1,050.00
7,000.00
7,000.00
2,100.00
7,000.00
14,000.00
2,700.00
6,000.00
18,000.00
1,050.00
7,000.00
7,000.00

21,000.00

PHILHEALTH CONTRIBUTION
MONTHLY
ANNUALLY
TOTAL
11,040.00
312.50
3,750.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
11,040.00
187.50
2,250.00
7,035.60
112.50
1,350.00
5,216.40
87.50
1,050.00
10,432.80
87.50
1,050.00
13,464.00
75.00
900.00
5,216.40
87.50
1,050.00
96,565.20

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
586.30
7,035.60
465.00
5,580.00
465.00
5,580.00
404.30
4,851.60
465.00
5,580.00

3,750.00
2,250.00
2,250.00
2,250.00
2,250.00
1,350.00
1,050.00
2,100.00
2,700.00
1,050.00

21,000.00

MONTHLY

96,565.20

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
586.30
7,035.60
434.70
5,216.40
434.70
5,216.40
374.00
4,488.00
434.70
5,216.40

1,730,400.00

YEAR 5

PHILHEALTH CONTRIBUTION
ANNUALLY
TOTAL
3,750.00
2,250.00
2,250.00
2,250.00
2,250.00
1,350.00
1,050.00
1,050.00
900.00
1,050.00

312.50
187.50
187.50
187.50
187.50
112.50
87.50
87.50
75.00
87.50

96,201.60

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
586.30
7,035.60
434.70
5,216.40
434.70
5,216.40
374.00
4,488.00
434.70
5,216.40

1,730,400.00

YEAR 4

MONTHLY
11,040.00
11,040.00
11,040.00
11,040.00
11,040.00
6,672.00
5,216.40
10,432.80
13,464.00
5,216.40
96,201.60

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
556.00
6,672.00
434.70
5,216.40
434.70
5,216.40
374.00
4,488.00
434.70
5,216.40

1,680,000.00

YEAR 3
ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
25,750.00
309,000.00
309,000.00
Sales and Marketing Manager
1
15,450.00
185,400.00
185,400.00
Finance Manager
1
15,450.00
185,400.00
185,400.00
Production/Purchasing Manager
1
15,450.00
185,400.00
185,400.00
Human Resource Manager
1
15,450.00
185,400.00
185,400.00
Accountant
1
9,270.00
111,240.00
111,240.00
Cashier
1
7,210.00
86,520.00
86,520.00
Sales Personnel
2
7,210.00
86,520.00
173,040.00
Production Staff
3
6,180.00
74,160.00
222,480.00
Design Staff
1
7,210.00
86,520.00
86,520.00
PAYABLE AT YEAR END

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
556.00
6,672.00
434.70
5,216.40
434.70
5,216.40
374.00
4,488.00
434.70
5,216.40

144,200.00

13TH MONTH PAY
ANNUALLY
TOTAL
3,750.00
26,522.50
26,522.50
2,250.00
15,913.50
15,913.50
2,250.00
15,913.50
15,913.50
2,250.00
15,913.50
15,913.50
2,250.00
15,913.50
15,913.50
1,350.00
9,548.10
9,548.10
1,050.00
7,426.30
7,426.30
2,100.00
7,426.30
14,852.60
2,700.00
6,365.40
19,096.20
1,050.00
7,426.30
7,426.30
21,000.00

148,526.00

3,750.00
2,250.00
2,250.00
2,250.00
2,250.00
1,350.00
1,050.00
2,100.00
2,700.00
1,050.00

13TH MONTH PAY
ANNUALLY
TOTAL
26,522.50
26,522.50
15,913.50
15,913.50
15,913.50
15,913.50
15,913.50
15,913.50
15,913.50
15,913.50
9,548.10
9,548.10
7,426.30
7,426.30
7,426.30
14,852.60
6,365.40
19,096.20
7,426.30
7,426.30

21,000.00

148,526.00

1,992,165.20

220,165.50
220,165.50
132,510.90
103,171.90
206,343.80
265,505.40

2,050,948.40

PAYABLE AT YEAR END

YEAR 6
ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
26,522.50
318,270.00
318,270.00
Sales and Marketing Manager
1
15,913.50
190,962.00
190,962.00
Finance Manager
1
15,913.50
190,962.00
190,962.00
Production/Purchasing Manager
1
15,913.50
190,962.00
190,962.00
Human Resource Manager
1
15,913.50
190,962.00
190,962.00
Accountant
1
9,548.10
114,577.20
114,577.20
Cashier
1
7,426.30
89,115.60
89,115.60
Sales Personnel
2
7,426.30
89,115.60
178,231.20
Production Staff
3
6,365.40
76,384.80
229,154.40
Design Staff
1
7,426.30
89,115.60
89,115.60
PAYABLE AT YEAR END

1,782,312.00

YEAR 7
ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
27,318.18
327,818.10
327,818.10
Sales and Marketing Manager
1
16,390.91
196,690.86
196,690.86
Finance Manager
1
16,390.91
196,690.86
196,690.86
Production/Purchasing Manager
1
16,390.91
196,690.86
196,690.86
Human Resource Manager
1
16,390.91
196,690.86
196,690.86
Accountant
1
9,834.54
118,014.52
118,014.52
Cashier
1
7,649.09
91,789.07
91,789.07
Sales Personnel
2
7,649.09
91,789.07
183,578.14
Production Staff
3
6,556.36
78,676.34
236,029.03
Design Staff
1
7,649.09
91,789.07
91,789.07
PAYABLE AT YEAR END

ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
27,318.18
327,818.10
327,818.10
Sales and Marketing Manager
1
16,390.91
196,690.86
196,690.86
Finance Manager
1
16,390.91
196,690.86
196,690.86
Production/Purchasing Manager
1
16,390.91
196,690.86
196,690.86
Human Resource Manager
1
16,390.91
196,690.86
196,690.86
Accountant
1
9,834.54
118,014.52
118,014.52
Cashier
1
7,649.09
91,789.07
91,789.07
Sales Personnel
2
7,649.09
91,789.07
183,578.14
Production Staff
3
6,556.36
78,676.34
236,029.03
Design Staff
1
7,649.09
91,789.07
91,789.07

ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
28,137.72
337,652.64
337,652.64
Sales and Marketing Manager
1
16,882.63
202,591.59
202,591.59
Finance Manager
1
16,882.63
202,591.59
202,591.59
Production/Purchasing Manager
1
16,882.63
202,591.59
202,591.59
Human Resource Manager
1
16,882.63
202,591.59
202,591.59
Accountant
1
10,129.58
121,554.95
121,554.95
Cashier
1
7,878.56
94,542.74
94,542.74
Sales Personnel
2
7,878.56
94,542.74
189,085.48
Production Staff
3
6,753.05
81,036.63
243,109.90
Design Staff
1
7,878.56
94,542.74
94,542.74
PAYABLE AT YEAR END

ADMINISTRATIVE EXPENSES
POSITION
NO. OF EMPLOYEES MONTHLY
ANNUALLY
TOTAL
MONTHLY
General/Operations Manager
1
28,137.72
337,652.64
337,652.64
Sales and Marketing Manager
1
16,882.63
202,591.59
202,591.59
Finance Manager
1
16,882.63
202,591.59
202,591.59
Production/Purchasing Manager
1
16,882.63
202,591.59
202,591.59
Human Resource Manager
1
16,882.63
202,591.59
202,591.59
Accountant
1
10,129.58
121,554.95
121,554.95
Cashier
1
7,878.56
94,542.74
94,542.74
Sales Personnel
2
7,878.56
94,542.74
189,085.48
Production Staff
3
6,753.05
81,036.63
243,109.90
Design Staff
1
7,878.56
94,542.74
94,542.74
PAYABLE AT YEAR END

1,890,854.80

MONTHLY
11,040.00
11,040.00
11,040.00
11,040.00
11,040.00
7,400.40
5,580.00
11,160.00
14,554.80
5,580.00

PHILHEALTH CONTRIBUTION
ANNUALLY
TOTAL
312.50
3,750.00
200.00
2,400.00
200.00
2,400.00
200.00
2,400.00
200.00
2,400.00
112.50
1,350.00
87.50
1,050.00
87.50
1,050.00
75.00
900.00
87.50
1,050.00

PHILHEALTH CONTRIBUTION
MONTHLY
ANNUALLY
TOTAL
11,040.00
312.50
3,750.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
7,400.40
112.50
1,350.00
5,580.00
87.50
1,050.00
11,160.00
87.50
1,050.00
14,554.80
75.00
900.00
5,580.00
87.50
1,050.00
99,475.20

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
616.70
7,400.40
495.30
5,943.60
495.30
5,943.60
434.70
5,216.40
495.30
5,943.60

1,890,854.80

YEAR 10

PHILHEALTH CONTRIBUTION
ANNUALLY
TOTAL
3,750.00
2,250.00
2,250.00
2,250.00
2,250.00
1,350.00
1,050.00
1,050.00
900.00
1,050.00

312.50
187.50
187.50
187.50
187.50
112.50
87.50
87.50
75.00
87.50

99,475.20

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
616.70
7,400.40
465.00
5,580.00
465.00
5,580.00
404.30
4,851.60
465.00
5,580.00

1,835,781.36

YEAR 9

MONTHLY
11,040.00
11,040.00
11,040.00
11,040.00
11,040.00
7,035.60
5,580.00
11,160.00
14,554.80
5,580.00
99,110.40

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
616.70
7,400.40
465.00
5,580.00
465.00
5,580.00
404.30
4,851.60
465.00
5,580.00

1,835,781.36

YEAR 8

PAYABLE AT YEAR END

SSS CONTRIBUTION
ANNUALLY
TOTAL
11,040.00
11,040.00
11,040.00
11,040.00
11,040.00
7,035.60
5,580.00
5,580.00
4,851.60
5,580.00

920.00
920.00
920.00
920.00
920.00
586.30
465.00
465.00
404.30
465.00

PHILHEALTH CONTRIBUTION
MONTHLY
ANNUALLY
TOTAL
11,040.00
312.50
3,750.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
7,400.40
125.00
1,500.00
5,943.60
87.50
1,050.00
11,887.20
87.50
1,050.00
15,649.20
75.00
900.00
5,943.60
87.50
1,050.00
102,024.00

SSS CONTRIBUTION
ANNUALLY
TOTAL
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
920.00
11,040.00
616.70
7,400.40
495.30
5,943.60
495.30
5,943.60
434.70
5,216.40
495.30
5,943.60

PHILHEALTH CONTRIBUTION
MONTHLY
ANNUALLY
TOTAL
11,040.00
312.50
3,750.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
11,040.00
200.00
2,400.00
7,400.40
125.00
1,500.00
5,943.60
87.50
1,050.00
11,887.20
87.50
1,050.00
15,649.20
75.00
900.00
5,943.60
87.50
1,050.00
102,024.00

13TH MONTH PAY
ANNUALLY
TOTAL
3,750.00
27,318.18
27,318.18
2,400.00
16,390.91
16,390.91
2,400.00
16,390.91
16,390.91
2,400.00
16,390.91
16,390.91
2,400.00
16,390.91
16,390.91
1,350.00
9,834.54
9,834.54
1,050.00
7,649.09
7,649.09
2,100.00
7,649.09
15,298.18
2,700.00
6,556.36
19,669.09
1,050.00
7,649.09
7,649.09
21,600.00

152,981.78

2,050,948.40

226,521.77
226,521.77
136,599.46
106,068.16
212,136.31
272,952.92

2,109,838.34

13TH MONTH PAY
ANNUALLY
TOTAL
3,750.00
27,318.18
27,318.18
2,400.00
16,390.91
16,390.91
2,400.00
16,390.91
16,390.91
2,400.00
16,390.91
16,390.91
2,400.00
16,390.91
16,390.91
1,350.00
9,834.54
9,834.54
1,050.00
7,649.09
7,649.09
2,100.00
7,649.09
15,298.18
2,700.00
6,556.36
19,669.09
1,050.00
7,649.09
7,649.09
21,600.00

152,981.78

2,109,838.34

13TH MONTH PAY
ANNUALLY
TOTAL
3,750.00
28,137.72
28,137.72
2,400.00
16,882.63
16,882.63
2,400.00
16,882.63
16,882.63
2,400.00
16,882.63
16,882.63
2,400.00
16,882.63
16,882.63
1,500.00
10,129.58
10,129.58
1,050.00
7,878.56
7,878.56
2,100.00
7,878.56
15,757.12
2,700.00
6,753.05
20,259.16
1,050.00
7,878.56
7,878.56
21,750.00

157,571.23

13TH MONTH PAY
ANNUALLY
TOTAL
3,750.00
28,137.72
28,137.72
2,400.00
16,882.63
16,882.63
2,400.00
16,882.63
16,882.63
2,400.00
16,882.63
16,882.63
2,400.00
16,882.63
16,882.63
1,500.00
10,129.58
10,129.58
1,050.00
7,878.56
7,878.56
2,100.00
7,878.56
15,757.12
2,700.00
6,753.05
20,259.16
1,050.00
7,878.56
7,878.56
21,750.00

157,571.23

2,172,200.03

232,914.22
232,914.22
140,584.93
109,414.90
218,829.80
281,718.26

2,172,200.03

Appendix 6
Yearly Miscellaneous Expense Schedule

Magnum Inc.
Yearly Miscellaneous Expenses
For Years 1-10
Legal Fee- Business Permit
Mayor's Permit
City Tax
Garbage Fee
Sanitary Fee
Building Inspection Fee
Electrical Inspection Fee
Plumbing Inspection Fee
Signboard
Fire Inspection Fee
Plate/Sticker
Zoning Fee
Total Business Permit Cost

Initial Costs
200.00
3,000.00
2,600.00
450.00
50.00
20.00
7.00
50.00
200.00
250.00
545.00
7,372.00

Appendix 7
Schedule of Supplies Expense

Magnum Inc.
Initial Supplies Expense
Supplies Expense
Office Supplies
Bond Paper
Pens
Tape
Stapler
Staple Wire
Paper clips
Printer Ink
Invoice Booklets
Scissors
Memo Pads
Total Office Supplies Expense
Cleaning Supplies
Trash Cans
Door Mats
Garbage Bags
Bathroom Deodorizer
Wet Mop
Dry Mop
Liquid Hand Soap
Paper Towel
Tissue Paper
Pail
Broom
Dust Pans
Total Cleaning Supplies Expenses
Total Initial Supplies Expenses

Qty.

Unit

Unit Cost Total Cost

5
20
5
3
5
2
3
12
3
12

reams
pcs.
rolls
pcs.
boxes
boxes
boxes
pads
pcs.
pcs.

156.25
6.00
17.50
80.00
16.75
30.75
3000.00
24.50
47.50
14.50

781.25
120.00
87.50
240.00
83.75
61.50
9,000.00
294.00
142.50
174.00
10,984.50

6
10
20
6
5
5
12
24
10
5
5
5

pcs.
pcs.
10 pcs
pcs.
pcs.
pcs.
bottles
packs
dz
pcs.
pcs.
pcs.

100.00
40.00
48.45
33.15
286.00
286.00
60.00
20.00
60.00
51.25
52.50
30.00

600.00
400.00
969.00
198.90
1,430.00
1,430.00
720.00
480.00
600.00
256.25
262.50
150.00
7,496.65
18,481.15

Appendix 7
Schedule of Supplies Expense

Magnum Inc.
Yearly Supplies Expense
Years 1-10
Supplies Expense
Office Supplies
Bond Paper
Pens
Tape
Staple Wire
Paper clips
Printer Ink
Invoice Booklets
Memo Pads
Total Office Supplies Expense
Cleaning Supplies
Door Mats
Garbage Bags
Bathroom Deodorizer
Wet Mop
Dry Mop
Liquid Hand Soap
Paper Towel
Tissue Paper
Broom
Dust Pans
Total Cleaning Supplies Expenses
Total Supplies Expenses

Qty.

Unit

Unit Cost Total Cost

5
20
5
5
2
3
12
12

reams
pcs.
rolls
boxes
boxes
boxes
pads
pcs.

156.25
6.00
17.50
16.75
30.75
3000.00
24.50
14.50

781.25
120.00
87.50
83.75
61.50
9,000.00
294.00
174.00
10,602.00

10
20
6
5
5
12
24
10
5
5

pcs.
10 pcs
pcs.
pcs.
pcs.
bottles
packs
dz
pcs.
pcs.

40.00
48.45
33.15
286.00
286.00
60.00
20.00
60.00
52.50
30.00

400.00
969.00
198.90
1,430.00
1,430.00
720.00
480.00
600.00
262.50
150.00
6,640.40
17,242.40

Appendix 8
Schedule of Rental Expenses

Magnum Inc.
Schedule of Rental Payments
Year 1-10
Year
Basic Rent (monthly)
Total Annual Rental Expense
*inflation

1
43,960.00
527,520.00
7.50%

2
47,257.00
567,084.00

3
50,801.28
609,615.30

4
54,611.37
655,336.45

5
58,707.22
704,486.68

6
63,110.27
757,323.18

7
67,843.54
814,122.42

8
72,931.80
875,181.60

9
78,401.69
940,820.22

10
84,281.81
1,011,381.74

Appendix 9
Schedule of Utilities Expense

MAGNUM INC.
Schedule of Utilities Expense
Utilities Expense
Electricity
Water
Gasoline
Telephone
Total
Accrued expense at year end
Expense
escalation

1.02

Year 1

Year 2

Year 3

Year 4

Year 5

180,000.00
48,000.00
42,000.00
18,000.00
288,000.00

183,600.00
48,960.00
42,840.00
18,360.00
293,760.00

187,272.00
49,939.20
43,696.80
18,727.20
299,635.20

191,017.44
50,937.98
44,570.74
19,101.74
305,627.90

194,837.79
51,956.74
45,462.15
19,483.78
311,740.46

24,000.00

24,480.00

24,969.60

25,468.99

25,978.37

Year 6

Year 7

Year 8

Year 9

198,734.54
52,995.88
46,371.39
19,873.45
317,975.27

202,709.24
54,055.80
47,298.82
20,270.92
324,334.78

206,763.42
55,136.91
48,244.80
20,676.34
330,821.47

210,898.69
56,239.65
49,209.69
21,089.87
337,437.90

26,497.94

27,027.90

27,568.46

28,119.83

Appendix 9
Schedule of Utilities Expense

MAGNUM INC.

Schedule of Utilities Expense
Year 10
215,116.66
57,364.44
50,193.89
21,511.67
344,186.66
28,682.22

Appendix 10
Sales Forecast

Magnum inc.

SALES FORECAST (YEAR 1-10)
YEAR
Production Volume
Estimated Percentage of items sold (at regular price)
Sold units (at regular price)
Average Selling Price
Revenue From regular Sales
Unsold Items from Previous year
Units Available for Discount Sale (50% discount)
Percentage sold (at discount price)
Sold units (at discount price)
Selling Price (at discount)
Revenue From Year-End Sale
Total Sales (in units)
Total Sales (in peso)

Year 1
30,983
40%
12,393
350
4,337,620.00
0
18,590
65%
12,083
175
2,114,589.75
24,477
6,452,209.75

Year 2
26,505
42.00%
11,132
350
3,896,235.00
6,506
21,879
68.25%
14,933
175
2,613,212.48
26,065
6,509,447.48

Year 3
31,896
44.10%
14,066
350
4,923,147.60
440
18,270
71.66%
13,093
175
2,291,244.49
27,159
7,214,392.09

Year 4
32,267
46.31%
14,941
350
5,229,432.02
4,737
22,063
75.25%
16,601
175
2,905,226.58
31,543
8,134,658.60

Year 5
36,412
48.62%
17,704
350
6,196,261.90
724
19,433
79.01%
15,354
175
2,686,862.52
33,057
8,883,124.42

Year 6
37,395
51.05%
19,091
350
6,681,716.86
3,355
21,659
82.96%
17,968
175
3,144,429.14
37,059
9,826,146.01

Year 7
40,352
53.60%
21,630
350
7,570,575.50
336
19,058
87.11%
16,601
175
2,905,122.70
38,231
10,475,698.20

Year 8
44,248
56.28%
24,905
350
8,716,593.13
2,121
21,465
91.46%
19,632
175
3,435,562.94
44,536
12,152,156.07

Year 9
45,245
59.10%
26,739
350
9,358,646.02
-288
18,218
96.03%
17,495
175
3,061,671.99
44,234
12,420,318.01

Year 10
49,032
62.05%
30,426
350
10,649,061.51
1,011
19,617
101%
19,781
175
3461660.17
50,207
14,110,721.68

Appendix 11
Cost of Goods Sold Schedule

MAGNUM INC.
COST OF GOODS SOLD SCHEDULE (YEARS 1-5)
cost/unit
CGS from Regular Sales
CGS from Discount Sales
sold items from last year
sold items from present year
TOTAL COST OF GOODS SOLD

Year 1
Year 2
Year 3
Year 4
Year 5
units sold
total cost
cost/unit
units sold
total cost
cost/unit
units sold
total cost
cost/unit
units sold total cost
cost/unit units sold total cost
95.08
12,393
1,178,286
106.70
11,132
1,187,741
104.08
14,066
1,463,944
104.82
14,941
1,566,171
96.75
17,704
1,712,901
12,083
14,933
13,093
16,601
15,354
95.08
6,506
618,600
106.70
440
46,973
104.08
4,737
493,011
104.82
724
75,941
95.08
12,083
1,148,828
106.70
8,426
899,036
104.08
12,653
1,316,826
104.82
11,864
1,243,636
96.75
14,629
1,415,422
2,327,114.13
2,705,377.35
2,827,743.43
3,302,817.11
3,204,263.05

Appendix 11
Cost of Goods Sold Schedule

MAGNUM INC.
COST OF GOODS SOLD SCHEDULE (YEARS 6-10)
CGS from Regular Sales
CGS from Discount Sales
sold items from last year
sold items from present year
TOTAL COST OF GOODS SOLD

Year 6
Year 7
Year 8
Year 9
Year 10
cost/unit units sold total cost
cost/unit units sold total cost
cost/units units sold total cost
cost/unit units sold total cost
cost/unit units sold total cost
97.58
19,091
1,862,951
98.93
21,630
2,139,774
98.19
24,905
2,445,499
99.72
26,739
2,666,460
100.07
30,426
3,044,677
17,968
16,601
19,632
17,495
19,781
96.75
3,355
324,601
97.58
336
32,809
98.93
2,121
209,829
98.19
-288
(28,314)
99.72
1,011
100,793
97.58
14,613
1,426,031
98.93
16,264
1,608,968
98.19
17,511
1,719,461
99.72
17,784
1,773,413
100.07
18,770
1,878,305
3,613,582.34
3,781,551.76
4,374,788.59
4,411,560.11
5,023,775.53

Appendix 12
Product Costing Schedule

MAGNUM INC.
PRODUCT COSTING (Year 1-5)
YEAR 1
units produced per unit cost

cost
DIRECT MATERIALS:
Cost of t-shirt
Cost of Paint
Total Per Unit Cost-DM
DIRECT LABOR
yearly salary and benefits of production staff
Annual Production
Total Per Unit Cost-DL
OVERHEAD
Photo emulsion
Table Adhesive
Thickener
Binder
Screen
Frame
Design Positive
Salary- Prod. / Purchasing Manager
Utilities Expense
Dep'n Expense-Plant
Dep'n Expense-Plant Assets & Vehicle
Total Overhead Cost
Yearly Production in Units
Total Per Unit Cost-OH
TOTAL PER UNIT COST

62.2
540

1
100

62.2
5.4
67.6

208,290.00

YEAR 2
units produced

cost
63.44
540

1
100

per unit cost
63.44
5.4
68.84

208,290.00
30,983

YEAR 3
units produced per unit cost

cost
64.71
540

34,700.96
2,013.90
7,435.92
3,253.22
58,093.13
44,925.35
30,983.00
250,164.00
288,000.00
1,980.00
125,105.13
846,654.59
30,983

64.71
5.4
70.11

257,184.00
26,505

0.15

1
100

YEAR 4
units produced per unit cost

cost
66.01
540

25,617.76
1,486.75
5,489.52
2,401.67
42,886.88
33,165.85
22,873.00
250,164.00
293,760.00
1,980.00
115,235.71
795,061.13
26,505

66.01
5.4
71.41

257,184.00
31,896

7.86

1
100

cost
67.33
540

35,451.36
2,057.45
7,596.72
3,323.57
59,349.38
45,896.85
31,653.00
214,140.00
299,635.20
1,980.00
125,105.13
826,188.64
31,896

1
100

67.33
5.4
72.73

257,184.00
32,267

8.06

YEAR 5
units produced per unit cost

36,412
7.97

33,297.60
1,932.45
7,135.20
3,121.65
55,743.75
43,108.50
29,730.00
214,140.00
305,627.90
1,980.00
125,105.13
820,922.18
32,267

0.14

40,290.88
2,338.31
8,633.76
3,777.27
67,451.25
52,162.30
35,974.00
220,165.50
311,740.46
1,980.00
125,105.13
869,618.86
36,412

27.33

30.00

25.90

25.44

23.88

95.08

106.70

104.08

104.82

96.75

Appendix 12
Product Costing Schedule

MAGNUM INC.
PRODUCT COSTING (Year 6-10)
cost
DIRECT MATERIALS:
Cost of t-shirt
Cost of Paint
Total Per Unit Cost-DM
DIRECT LABOR
yearly salary and benefits of production staff
Annual Production
Total Per Unit Cost-DL
OVERHEAD
Photo emulsion
Table Adhesive
Thickener
Binder
Screen
Frame
Design Positive
Salary- Prod. / Purchasing Manager
Utilities Expense
Dep'n Expense-Plant
Dep'n Expense-Plant Assets & Vehicle
Total Overhead Cost
Yearly Production in Units
Total Per Unit Cost-OH
TOTAL PER UNIT COST

68.67
540

YEAR 6
units produced per unit cost
1
100

68.67
5.4
74.07

257,184.00

cost
70.75
540

YEAR 7
units produced per unit cost
1
100

70.75
5.4
76.15

272,952.92
37,395

cost
71.45
540

39,915.68
2,316.54
8,553.36
3,742.10
66,823.13
51,676.55
35,639.00
220,165.50
317,975.27
1,980.00
125,105.13
873,892.24
37,395

1
100

71.45
5.4
76.85

272,952.92
40,352

0.15

YEAR 8
units produced per unit cost

cost
72.88
540

44,975.84
2,610.21
9,637.68
4,216.49
75,294.38
58,227.65
40,157.00
226,521.77
324,334.78
1,980.00
125,105.13
913,060.90
40,352

1
100

72.88
5.4
78.28

281,718.26
44,248

0.15

YEAR 9
units produced per unit cost

cost
74.33
540

48,370.56
2,807.22
10,365.12
4,534.74
80,977.50
62,622.60
43,188.00
226,521.77
330,821.47
1,980.00
125,105.13
937,294.11
44,248

1
100

74.33
5.4
79.73

281,718.26
45,245

0.16

YEAR 10
units produced per unit cost

49,032
0.16

50,774.08
2,946.71
10,880.16
4,760.07
85,001.25
65,734.30
45,334.00
232,914.22
337,437.90
1,980.00
125,105.13
962,867.82
45,245

0.17

54,426.40
3,158.68
11,662.80
5,102.48
91,115.63
70,462.75
48,595.00
232,914.22
344,186.66
1,980.00
125,105.13
988,709.73
49,032

23.37

22.63

21.18

21.28

20.16

97.58

98.93

98.19

99.72

100.07

Appendix 12
IRR Computation

Magnum, Incorporated
Computation of Internal Rate of Return
Year
0
1
2
3
4
5
6
7
8
9
10
IRR

Year-End Cash Flow
(2,993,034.21)
386,045.20
828,443.35
41,503.43
1,172,492.22
1,014,850.32
1,852,902.19
1,517,128.74
2,752,865.75
2,043,094.55
3,156,941.25
29%

Appendix 13
NPV Computation

Magnum. Incorporated
Computation of Net Present Value
Magnum's Cost of Capital
Year
0
1
2
3
4
5
6
7
8
9
10
NPV

20%

Year-End Cash Flow
(2,993,034.21)
386,045.20
828,443.35
41,503.43
1,172,492.22
1,014,850.32
1,852,902.19
1,517,128.74
2,752,865.75
2,043,094.55
3,156,941.25
$1,491,273.39

Appendix 14
Payback Period

Magnum, Incorporated
Computation of Payback Period
Project Cost
Year
1
2
3
4
5
6
7
8
9
10
Payback Period

(2,993,034.21)
Cumulative Balance
Year- End Cash Flow
(2,993,034.21)
386,045.20
(2,606,989.01)
828,443.35
(1,778,545.66)
41,503.43
(1,737,042.22)
1,172,492.22
(564,550.01)
1,014,850.32
0
1,852,902.19
1,517,128.74
Total
2,752,865.75
2,043,094.55
3,156,941.25
4.56 years

Year
1
1
1
1
-0.56
4.56

Appendix 15
Financial Ratios

MAGNUM INC.
Financial Ratios
Years
1

2

3

4

5

6

7

8

9

10

Liquidity Ratios
Current Ratio
Quick Ratio

5.01
1.83

8.62
7.69

7.06
4.68

7.33
6.71

2.95
2.21

4.07
3.84

5.30
4.93

6.00
5.98

7.52
7.35

8.12
8.10

Activity Ratios
Inventory Turnover
Total Asset Turnover

5.34
1.83

5.36
1.87

6.64
1.86

7.13
1.85

8.85
2.61

10.60
2.09

13.80
1.72

23.02
1.47

38.23
1.22

40.90
1.09

Debt Ratios
Debt Ratio
Debt to Equity Ratio

0.67
2.04

0.65
1.87

0.62
1.60

0.56
1.28

0.19
0.24

0.18
0.22

0.15
0.18

0.15
0.17

0.12
0.14

0.12
0.13

53.22%
7.05%
4.03%
2.89

47.72%
1.36%
0.78%
0.56

50.09%
6.81%
3.89%
3.12

48.68%
9.53%
5.45%
4.92

53.21%
16.00%
9.14%
9.02

52.51%
18.16%
12.35%
13.48

53.19%
19.75%
13.43%
15.63

53.29%
23.72%
16.13%
21.78

53.69%
23.81%
15.39%
21.32

53.80%
26.56%
18.06%
28.17

7.38%
8.68%

1.46%
4.37%

7.24%
23.20%

10.05%
29.71%

23.81%
41.96%

25.83%
44.18%

23.05%
36.46%

23.77%
37.94%

18.81%
27.31%

19.66%
28.34%

Profitability Ratios
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
EPS
Return on Assets
Return on Equity

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